TCA SUPPORTS HB 1900 TO GIVE TAX BREAK TO OVER 5 MILLION TEXAS FAMILIES

15.3 million Texans impacted by relief on some of the highest telecom taxes in the nation

The Texas Cable Association (TCA) on Monday testified in the House Ways and Means Committee in support of a bill that would give 5.5 million Texas cable and other video subscribers a break on their video taxes – taxes that satellite customers don’t pay.

HB 1900 by Rep. Craig Eiland (D-Galveston) would lower monthly cable bills by providing direct, ongoing tax relief impacting 15.3 million Texans, who pay some of the highest telecommunications taxes in the nation. Sen. Craig Estes (R-Wichita Falls) is carrying companion bill Senate Bill 1465.

“We are not talking about a tax cut for business,” said James LeBas, a tax consultant who testified on behalf of TCA. “Cable and satellite companies don’t pay these taxes. They collect these taxes from their customers every month with their bill. Reducing the tax on video services directly impacts Texas consumers. This may be the biggest consumer tax cut proposal of the 83rd session.”

Under HB 1900, customers of cable and other terrestrial video providers (AT&T U-verse, Verizon, FiOS, Grande and others) would not have to pay the state’s 6.25 percent sales tax on the first $75 of the monthly bill. These customers now pay about 14.5 percent in taxes on their monthly bills; in addition to the state sales tax, they also pay up to 8.25 percent in local sales taxes and franchise fees.

By contrast, Texans who get their video through satellite pay only the 6.25 percent state sales tax, under a federal law passed almost 20 years ago intended to help then-fledgling satellite companies. Today, this is a huge advantage for what are now Fortune 200 companies with millions of customers in Texas and that make billions of dollars each year, own assets across the country and employ thousands.

“It’s comparable to having the pizza guy charge you double the tax rate because he drove to your house in a Chevy rather than a Ford,” LeBas testified. “It’s the same pizza, and in the case of video service, it’s the same HBO. A double tax based on a delivery mechanism can’t really be justified.”

The proposed state sales tax exemption would generate more than three times the tax relief provided by the state’s three-day sales tax holiday and is similar to one that exempts the first $25 in monthly Internet charges from state sales tax.

“When video service providers compete on a level playing field, consumers are able to choose the service provider based on who best delivers value and quality service – without regard to the amount of taxes they have to pay,” LeBas said.

“TCA respectfully requests that Texas modernize its video tax and fee regime by lowering the burden on cable and telecom subscribers, giving video service customers a more tax-neutral choice and directly impacting 15.3 million Texans.”

In addition to TCA, testimony Monday included Tom Giovanetti, president of the Institute for Policy Innovation (IPI).

“We believe it’s important for Texas to adjust its tax policies so that like video services are taxed alike, so that Texas consumers are not having their choices distorted by distorted tax policies,” Giovanetti said.

HB 1900 also is supported by Americans for Tax Reform and the Houston Area Urban League.

HB 1900 has gained widespread, bipartisan support. In addition to Eiland, HB 1900 joint authors are Ways and Means Committee Chairman Harvey Hilderbran (R-Kerrville), Carol Alvarado (D-Houston), Tim Kleinschmidt (R-Lexington) and Geanie Morrison (R-Victoria).

Listed co-authors are Reps. Travis Clardy (R-Nacogdoches), Allen Fletcher (R-Tomball), Dan Flynn (R-Van), Lance Gooden (R-Terrell), Patricia Harless (R-Spring), Borris Miles (D-Houston), Poncho Nevárez (D-Eagle Pass), Eddie Rodriguez (D-Austin), Senfronia Thompson (D-Houston), Jason Villalba (R-Dallas) and Armando Walle (D-Houston).

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TCA (www.txcable.com) has been the primary trade organization for cable operators in Texas since 1960. Members include Allegiance Communications, Cable One, Charter Communications, Comcast, Mediastream, Suddenlink Communications and Time Warner Cable. Follow TCA’s activities on Facebook (www.facebook.com/texascable) and Twitter (www.twitter.com/texascable).  

“The addition of Lucas Meyers to the Texas Cable Association gives us a strong, experienced government relations team going into the 2013 legislative session,” said Jon Gary Herrera, chairman of the TCA Board of Directors and vice president of communications in Texas, Time Warner Cable. “Our team’s wealth of experience at the Capitol will serve us well as the Texas Legislature continues to debate issues of importance to the cable industry.”

Meyers joined Lt. Gov. Dewhurst’s staff as senior policy adviser in October 2010 with a focus on policy and budget issues relating to a number of areas, including telecommunications. Previously, he worked during the 2001 and 2003 legislative sessions for state Rep. Vilma Luna (D-Corpus Christi). In between stints at the Texas Capitol, Meyers worked at the New York office of the law firm Skadden, Arps, Slate, Meagher & Flom LLP.

Meyers earned a bachelor’s degree in government in 2001 and a law degree with honors in 2008, both from The University of Texas at Austin.

Burdett has served as director of government relations for TCA since November 2006. Before joining TCA, Burdett was legislative director for state Sen. Mike Jackson (R-LaPorte) and state Rep. Peggy Hamric (R-Houston) and a clerk for the Texas House Ways and Means Committee. Burdett holds a bachelor’s degree from Texas State University.

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TCA (www.txcable.com) has been the primary trade organization for cable operators in Texas since 1960. Members include Allegiance Communications, Cable One, Charter Communications, Comcast, Mediastream, Suddenlink Communications and Time Warner Cable. Follow TCA’s activities on Facebook (www.facebook.com/texascable) and Twitter (www.twitter.com/texascable).  

Texas cable operators have organized special events in communities throughout Texas as part of HISTORY’s Take a Veteran to School Day annual outreach initiative in honor of Veterans Day. Several cable providers also are holding internal events to recognize their employee veterans through HISTORY’s Thank a Veteran at Work program.

In Texas, Cable One, Suddenlink and Time Warner Cable will host Take a Veteran to School Day programs throughout this and next week at a number of schools including Austin Middle School in Amarillo; Village Elementary School and Georgetown ISD’s office in Georgetown; Rapoport Academy in Waco; Belton Middle School in Belton; Cole Middle/High School on Fort Sam Houston in San Antonio; Metz Elementary School in Austin; and Ross Elementary School in Odessa.

Although each school designs and holds its own specific program connected with Take a Veteran to School Day, events honor and feature local veterans who share their stories with the students and receive a heartfelt “thank you” for their service

Launched in 2007, Take a Veteran to School Day is HISTORY’s premiere public affairs outreach program and connects veterans from all walks of life with students in schools and communities nationwide. In 2012, more than 5,000 schools in all 50 states are expected to participate. As part of this campaign, HISTORY offers participating schools curriculum-based educational materials at www.veterans.com as well as a Veterans Day video produced with the U.S. Department of Education, all provided free-of-charge.

“We are so pleased to be working with the Texas Cable Association and its cable operator members to honor veterans in the state,” said Dr. Libby O’Connell, Chief Historian and SVP, Corporate Outreach for HISTORY. “As part of this program, students will not only learn about Veterans Day, but they will also learn important life lessons about service and commitment. And in the process, the veterans will receive a well-deserved thank you from all of us.”

“Texas’ cable operators have enthusiastically embraced this program from its start and look forward each year to helping veterans share their stories with our state’s school children,” said Kirsten Voinis, communications director for the Texas Cable Association. “We have found over the years that participating in both the Take a Veteran to School and Thank a Veteran at Work programs is as rewarding for our cable members as it is for the veterans and students.”

Take a Veteran to School Day is a key component of HISTORY’s broad veterans outreach campaign, which also includes Thank a Veteran at Work, which encourages employers to recognize former military service men and women.

As part of that campaign, San Antonio Mayor Julian Castro is among those who have recorded public service announcements reminding all Americans to thank our nation’s veterans. It can be found at http://www.history.com/interactives/thank-a-vet.

These PSAs will run on-air and on-line throughout November. More than 500 companies have participated in the Thank A Veteran initiative.

HISTORY also is mobilizing people to “Thank a Vet” through an active social media campaign. From Nov. 1-11, HISTORY is thanking veterans from all branches of service on Twitter using the hash tag #THANKAVET. A special website located at www.history.com/thank-a-vet houses the Twitter feed, making it easy for anyone to type in their Tweet and honor those who have served. As part of the Twitter campaign, HISTORY also is donating funds to non-profit organizations including America’s VetDogs to help support their efforts. Special short video vignettes with the theme “It’s Never Too Late to Thank a Vet” also will run on the site during the campaign.

About the Texas Cable Association

TCA (www.txcable.com) has been the primary trade organization for cable operators in Texas since 1960. Members include Allegiance Communications, Cable One, Charter Communications, Comcast, CommuniComm, Suddenlink Communications and Time Warner Cable. Follow TCA’s activities on Facebook (www.facebook.com/texascable) and Twitter (www.twitter.com/texascable).

About HISTORY®

HISTORY® and HISTORY HD® are the leading destinations for revealing, award-winning original non-fiction series and event specials that connect history with viewers in an informative, immersive and entertaining manner across multiple platforms. Programming covers a diverse variety of historical genres ranging from military history to contemporary history, technology to natural history, as well as science, archaeology and pop culture. Among the network’s program offerings are hit series such as American Pickers, Ax Men, American Restoration, Ice Road Truckers, Top Gear, Pawn Stars and Top Shot, as well as acclaimed specials including Gettysburg, America the Story of Us, WWII in HD, 102 Minutes That Changed America and Life After People. HISTORY has earned four Peabody Awards, seven Primetime Emmy® Awards, 12 News & Documentary Emmy® Awards and received the prestigious Governor’s Award from the Academy of Television Arts & Sciences for the network’s Save Our History® campaign dedicated to historic preservation and history education. Take a Veteran to School Day is the network’s signature initiative connecting America’s schools and communities with veterans from all wars. The HISTORY website, located at www.historypressroom.com.

TCA ELECTS NEW BOARD OFFICERS

Members of the Texas Cable Association (TCA) Board of Directors have elected the 2012-2013 Executive Committee and Board of Directors for one-year terms starting July 1. TCA has been the primary trade organization for cable operators in Texas since 1960.

Officers, serving as TCA’s executive committee, include:

• Chairman – Jon Gary Herrera, vice president of communications in Texas, Time Warner Cable, based in San Antonio.
• Vice Chairman – Craig D’Agostini, senior director of government affairs, Comcast, based in Houston.
• Secretary – Lana Glover, director of government relations, Time Warner Cable, based in Austin.
• Treasurer – Dave Gilles, senior vice president of operations, West Region, Suddenlink, based in Lubbock.
• Immediate Past Chairman – Dan Hebert, vice president and general manager, Texas, Charter Communications, based in Fort Worth.
• Members at Large – Clem Maddox, director of government relations, Time Warner Cable, based in Coppell; and Kenny Walker, general manager, Cable ONE, based in Odessa.

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TCA (www.txcable.com) has been the primary trade organization for cable operators in Texas since 1960. Members include Allegiance Communications, Cable One, Charter Communications, Comcast, CommuniComm, Suddenlink Communications and Time Warner Cable. Follow TCA’s activities on Facebook (www.facebook.com/texascable) and Twitter (www.twitter.com/texascable).  

An almost seven-year legal battle over the state’s law specifying how video franchises are issued came to an end Monday with a U.S. Supreme Court ruling and a final ruling issued by U.S. District Judge Lee Yeakel agreeing with the Texas Cable Association (TCA) that the state law is unconstitutional because it violates the First Amendment of the U.S. Constitution.

TCA on Sept. 8, 2005 filed a federal lawsuit against the State of Texas challenging Senate Bill 5, which had been signed into law one day earlier after passage during the second special session of the 79^th Legislature.

Yeakel issued his final judgment pursuant to the U.S. Fifth Circuit of Appeals’ ruling on Jan. 13. The State of Texas had asked the U.S. Supreme Court to review this ruling, which the Court declined Monday.

The following statement can be attributed to Kirsten Voinis, TCA spokesperson:

“The Texas Cable Association is extremely pleased that this long legal battle is over, and that federal courts on both the district and the appellate levels vindicated our argument that the 2005 statute is unconstitutional because of its disparate treatment of video providers in Texas. SB 5 was found to violate the First Amendment of the U.S. Constitution because, as the Fifth Circuit Court of Appeals found, it plainly discriminates against a small and identifiable number of cable providers.

“Now the path has been cleared for all video providers in Texas– whether incumbent providers or new entrants into the marketplace – to operate on a more level playing field, as they should have been all along.

“More importantly, this critically important case law affirms cable companies’ First Amendment rights and will be cited in the future as legal precedent.”

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TCA (www.txcable.com) has been the primary trade organization for cable operators in Texas since 1960. Members include Allegiance Communications, Cable One, Charter Communications, Comcast, CommuniComm, Suddenlink Communications and Time Warner Cable. Follow TCA’s activities on Facebook (www.facebook.com/texascable) and Twitter (www.twitter.com/texascable).  

The Texas Cable Association (TCA) issued the following statement in connection with the Fifth Circuit Court of Appeals ruling Friday that reverses a federal district court’s dismissal of TCA’s lawsuit over Senate Bill 5, the state’s law specifying how video franchises are issued.

TCA filed its federal lawsuit against the State of Texas challenging Senate Bill 5 (passed during the second special session of the 79^th Legislature) on Sept. 8, 2005, in the U.S. District Court, Western Division of Texas, Austin division.

The following statement can be attributed to Kirsten Voinis, TCA spokesperson:

“The Texas Cable Association is extremely pleased that the Fifth Circuit Court of Appeals reversed the dismissal of our lawsuit and affirmed our argument that the 2005 statute is unconstitutional because of its disparate treatment of video providers in Texas. Once this decision is implemented, video providers in our state – whether incumbent providers or new entrants into the marketplace – will be operating on a more level playing field, as they should have been all along. We hope the federal district court will move quickly to draft its order – as the appeals court encouraged in its opinion – and put to rest this lawsuit that was filed more than six years ago.”

Contact: Kirsten Voinis @(512) 922-7141 or kvoinis@txcable.com

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TCA (www.txcable.com) has been the primary trade organization for cable operators in Texas since 1960. Members include Allegiance Communications, Cable One, Charter Communications, Comcast, CommuniComm, Suddenlink Communications and Time Warner Cable. Follow TCA’s activities on Facebook (www.facebook.com/texascable) and Twitter (www.twitter.com/texascable).

The award recognizes a group or organization that embraces diversity and raises the bar for others to do the same while working in support or partnership with the industry.

“The Texas Cable Association has been the face of cable in Texas since 1960, representing the industry at the Legislature and working with cable operators and programmers on education and public service initiatives,” said WICT Greater Texas President Aimee Doane, vice president, operations, for Suddenlink West Region.

TCA President and COO Dale Laine accepted the award for TCA, saying, “Women in Cable Telecommunications plays a tremendous role in advancing the position and influence of women in the cable industry. The Texas Cable Association is honored to accept the “All Star” award for our work with the cable industry both in Texas and across the country.”

Other Lone Star Award 2011 winners announced by WICT are: Star of the Year Inspiration Award – Shannon Orcutt, Time Warner Cable; Shining Star Woman to Watch Award – Norma Cordova, Time Warner Cable; Rising Star Woman of the Future Award – Sherry Matlock, Charter Communications; Star Power Woman in Technology Award – Karen Venditti, Comcast Houston Region; and North Star Advocate Award – Dave Gilles, Suddenlink Communications.

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TCA (www.txcable.com) has been the primary trade organization for cable operators in Texas since 1960. Members include Allegiance Communications, Cable One, Charter Communications, Comcast, CommuniComm, Suddenlink Communications and Time Warner Cable. Follow TCA’s activities on Facebook (www.facebook.com/texascable) and Twitter (www.twitter.com/texascable).

AUSTIN – The Texas Cable Association (TCA) issued the following statement in connection with the signing into law by Gov. Rick Perry of Senate Bill 1087, which provides a more level playing field for video service providers by erasing some competitive advantages provided by prior legislation for new entrants to the video market. The law goes into effect Sept. 1.

The following statement can be attributed to Todd Baxter, Vice President, Government Affairs and General Counsel, of the Texas Cable Association.

“The Texas Cable Association thanks Chairmen John Carona and Harvey Hilderbran for their hard work to make video service regulations more fair.  As a result of SB 1087, businesses that offer the same services – cable operators, telephone companies and other video providers – will operate on a more level playing field. Texans who subscribe to video services win when there is competition in the marketplace.”

Among the provisions of SB 1087:

• In cities of less than 215,000 population, cable providers that now operate under municipal franchise agreements will be allowed to terminate those agreements and opt into the State-Issued Certificate of Franchise Authority (SICFA) system starting Sept. 1. Under current law, new market entrants operate under SICFA, but incumbent cable providers are not permitted to transition to SICFA until their existing municipal franchise agreements expire – which, in some instances, is not until 2030.
• Franchise fee audits by cities will be limited to four years. This ensures that cities and providers know by a time certain if adjustments in franchise fee payments are needed.
• A documentation system will ensure cities are appropriately using the 1 percent Public, Educational and Government Access programming (PEG) fee paid to them by Texas video customers. The fee is intended to be used by cities to support PEG channels, but no system of accountability or transparency exists.

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TCA (www.txcable.com) has been the primary trade organization for cable operators in Texas since 1960. Members include Allegiance Communications, Cable One, Charter Communications, Comcast, CommuniComm, Suddenlink Communications and Time Warner Cable. Follow TCA’s activities on Facebook (www.facebook.com/texascable) and Twitter (www.twitter.com/texascable).

Officers, serving as TCA’s executive committee, include:

• Chairman – Dan Hebert, vice president and general manager, Texas, Charter Communications, based in Fort Worth.
• Vice Chairman – Jon Gary Herrera, vice president, communications, Time Warner Cable West Region, based in San Antonio.
• Secretary – Clem Maddox, director of government relations, Time Warner Cable West Region, based in Coppell.
• Treasurer – Mike Rose, senior director of government affairs, Comcast, based in Austin.
• Immediate Past Chairman – John Owen, president, commercial services, Time Warner Cable West Region, based in Coppell.
• Members at Large – Ray Purser, vice president of government and public relations, Comcast, based in Houston, and Skip Ogle, director of government and community relations, Suddenlink, based in Tyler.

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TCA (www.txcable.com) has been the primary trade organization for cable operators in Texas since 1960. Members include Allegiance Communications, Cable One, Charter Communications, Comcast, CommuniComm, Suddenlink Communications and Time Warner Cable. Follow TCA’s activities on Facebook (www.facebook.com/texascable) and Twitter (www.twitter.com/texascable).