HBA-SEP H.B. 2361 77(R)    BILL ANALYSIS


Office of House Bill AnalysisH.B. 2361
By: Wolens
State Affairs
3/21/2001
Introduced



BACKGROUND AND PURPOSE 

In 1995, the 74th Legislature created the Telecommunications Infrastructure
Fund Board (TIF) to award grants and loans to fund telecommunications
equipment and infrastructure for various public entities.  The TIF is
funded by an annual assessment at a rate of 1.25 percent of the taxable
telecommunication receipts of each telecommunication utility and commercial
mobile service provider doing business in the state.  A State Auditor
report released in February 2000, concluded that the TIF had distributed
approximately 25 percent, or $385 million, of its fund without adequately
identifying Texas' telecommunication needs, effectively collaborating with
other agencies, or developing written procedures for its day-to-day
operations.  The state would be better served if the duties of the TIF were
fulfilled by the Public Utility Commission (PUC), which is the agency
responsible for the regulation of the telecommunications industry in Texas.
House Bill 2361 abolishes the Telecommunications Infrastructure Fund Board
and transfers all powers, duties, obligations, rights, contracts, funds,
unspent appropriations, records, real or personal property, and personnel
of the TIF to the PUC. 

RULEMAKING AUTHORITY

It is the opinion of the Office of House Bill Analysis that rulemaking
authority previously delegated to the Telecommunications Infrastructure
Fund Board is being transferred to the Public Utility Commission in this
bill. 

ANALYSIS

House Bill 2361 amends the Utilities and Government codes to abolish the
Telecommunications Infrastructure Fund Board (board) and to transfer all
powers, duties, obligations, rights, contracts, funds, unspent
appropriations, records, real or personal property, and personnel of the
board to the Public Utility Commission.   

EFFECTIVE DATE

September 1, 2001.