HBA-LJP H.B. 1736 77(R) BILL ANALYSIS Office of House Bill AnalysisH.B. 1736 By: Wolens State Affairs 3/14/2001 Introduced BACKGROUND AND PURPOSE Under current law, all regions of the state of Texas, including low-income customers and customers in rural and high cost regions, are to have reasonably comparable access to advanced telecommunications services by 2001. In its report to the 77th Legislature on "Availability of Advanced Services in Rural and High Cost Areas" the Public Utility Commission of Texas identified that it is more expensive to deploy advanced services to many areas of rural Texas because of lower population density and longer distances. Consequently, these areas have less access and lower computer and Internet usage rates. House Bill 1736 provides various incentives for the deployment of advanced services and encourages local solutions for communities without advanced services, especially smaller rural communities. RULEMAKING AUTHORITY It is the opinion of the Office of House Bill Analysis that rulemaking authority is expressly delegated to the telecommunications infrastructure fund board in SECTION 6 (Sec. 57.0475, Utilities Code) and the General Services Commission in SECTION 8 (Sec. 2170.060, Government Code) of this bill. ANALYSIS HBA-LJP H.B. 1736 77(R) House Bill 1736 amends the Utilities, Government, Transportation, and Local Government codes and the Development Corporation Act of 1979 to create the Texas Universal Broadband Access Act of 2001, which relates to the enhanced availability of advanced telecommunications services. The bill provides that the Public Utility Commission of Texas (PUC) has all jurisdiction necessary to enforce provisions related to the deployment of advanced services to rural areas (Sec. 55.407, Utilities Code). The bill sets forth provisions related to statewide advanced services strategic planning and sets forth the duties and responsibilities of the PUC in carrying out the statewide advanced service strategic plan (Sec. 55.406, Utilities Code). The bill provides that beginning September 1, 2002, it is the responsibility of a local exchange company with a certificate of convenience and necessity (LEC) to see that customers within the certified area have access to certain advanced services, within three months of a bona fide retail request, through the LEC or another company that has entered into a partnership or joint venture with the LEC (Sec. 55.403, Utilities Code). The bill provides that a LEC in an urban service area that provides advanced telecommunications services is required to provide those services to the rural areas it serves within 3 months of a bona fide retail request, that are comparable to the services provided in the urban service area beginning September 1, 2003 (Sec. 55.014, Utilities Code). The bill sets forth local solutions to encourage the deployment of advanced services in any area of the state where deployment of such services has yet to occur, in rural communities with populations of less than 20,000, including demand aggregation, anchor tenancy, and community networks. The bill also sets forth funding sources for rural communities to fund advanced services projects (Sec. 55.404, Utilities Code). The bill authorizes a municipality or municipal electric system, with PUC approval, to establish and provide advanced services to such areas (Sec. 54.202, Utilities Code). The bill requires PUC to use its best efforts to create and maintain a database capable of graphic representation available for public use that contains the location and inventory of all public and private sector telecommunications and advanced services facilities (Sec. 55.405, Utilities Code). The bill expands the use of the money in the qualifying entities account that the telecommunications infrastructure fund board (board) is required to use for any purpose including the development, provisioning, and continuing operation costs associated with the operation of the community technology centers (Sec. 57.046, Utilities Code). The bill also sets forth provisions for the board's administration of the rural economic development account and the grant and loan program for expenditures related to the deployment of advanced services and the provision of community networks and community technology centers (Secs. 57.0465 and 57.047, Utilities Code). The bill requires the board to coordinate its duties and responsibilities with the PUC and any other state or local governmental entity to encourage the ubiquitous access of advanced services in rural areas of the state. The bill sets forth guidelines for communities establishing an anchor tenant arrangement, developing a community network, or attempting to aggregate demand. The bill also requires the board to adopt rules to implement the provisions related to the rural economic development grant and loan program in cooperation with the PUC, the General Services Commission (GSC), the Department of Information Resources, and other appropriate state agencies to coordinate the requests for access from different parties in the same rural area. (Sec. 57.0475, Utilities Code). The bill adds the PUC, GSC, the Commission on State Emergency Communications, and the Texas Department of Economic Development to the list of agencies that formally advises the telecommunications planning group (Sec. 2054.206, Government Code). The bill sets forth provisions for GSC to allow access to the Texas Telecommunications Information Gateway and the consolidated telecommunications system by anchor tenants (Sec. 2170.0045, Government Code). The bill establishes guidelines relating to GSC's evaluation of proposals regarding anchor tenant access and the allocation of funds for anchor tenant access (Sec. 2170.0055, Government Code). The bill provides that it is the policy of this state that all rural areas, which are unable to obtain advanced services, have access to such services through the consolidated telecommunications system. The bill requires GSC to coordinate its duties and responsibilities with the telecommunications infrastructure fund and permit access pursuant to PUC approval. The bill requires GSC to adopt rules to implement provisions, including rules to coordinate requests for access from different parties in the same rural area (Sec. 2170.060, Government Code). The bill amends the Transportation Code to authorize the Texas Department of Transportation to require a person to allow the state to deploy fiber optic facilities or cause fiber optic facilities to be deployed during the person's construction in the state right-of-way, when granting permission to the person for the use of state rights-of-way (Sec. 224.009, Transportation Code). EFFECTIVE DATE September 1, 2001.