Texas Justices Open to Cities’ Position on Franchise Fee Cap

The Texas Supreme Court seemed willing at oral arguments Thursday to rule that 59 cities challenging legislation capping the franchise fees they can charge telecommunications providers, but less eager to agree that the cap violates the state constitution’s gift clauses.

The state wants the justices to reverse a 2024 appeals court ruling agreeing with the cities, led by McAllen, that the two challenged bills unconstitutionally require the cities to hand over access to the rights-of-way to private corporations to install equpment for less than that access is worth. The Texas Constitution’s gift clauses prohibit municipalities from granting public money or ...