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.