HBA-TYH H.B. 3723 76(R)    BILL ANALYSIS


Office of House Bill AnalysisH.B. 3723
By: Bailey
State Affairs
4/8/1999
Introduced



BACKGROUND AND PURPOSE 

Deregulation of the telecommunications industry has brought about an
increasingly competitive environment and significantly increased the number
of mergers by telecommunications companies. Such mergers often have
far-reaching implications for residential consumers as well as large and
small businesses in Texas.  However, under current law, telecommunications
utilities are not required to report mergers to the Public Utility
Commission (commission), and the commission has no authority to consider
the effect of such mergers in its ratemaking proceedings.  This lack of
authority to negotiate or require merger benefits for Texas citizens put
the state at a disadvantage. H.B. 3723  requires telecommunication
companies to report mergers to the commission and authorizes the commission
to investigate such mergers and negotiate for consumer benefits. 

RULEMAKING AUTHORITY

It is the opinion of the Office of House Bill Analysis that this bill does
not expressly delegate any additional rulemaking authority to a state
officer, department, agency, or institution. 

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Section 51.010(c), Utilities Code, to delete a
telecommunications company from those entities to which Section 14.101
(Report of Certain Transactions; Commission Consideration) does not apply. 

SECTION 2.  Effective date: September 1, 1999.

SECTION 3.  Emergency clause.