Texas Justices Take Up Franchise Fee Fight Between State, Cities

The Texas Supreme Court will review a case filed by 59 cities alleging legislation that limits their ability to charge telecommunications and cable providers for use of public rights-of-way violates the state constitution’s gifts clause.

The state wants the justices to reverse a 2024 appeals court ruling agreeing with the cities that the two challenged bills unconstitutionally require them to hand over access to the rights-of-way to private corporations. It argues that the cities don’t have standing to sue the state because it doesn’t enforce these laws, and the rights-of-way are owned by the state, so the cities aren’t giving ...