HBA-SEP H.B. 925 77(R)    BILL ANALYSIS


Office of House Bill AnalysisH.B. 925
By: Kitchen
Economic Development
2/16/2001
Introduced



BACKGROUND AND PURPOSE 

Access to telecommunications tools and the Internet are necessary to
compete in an economy becoming increasingly reliant on information
technology.  However, there is a growing gap in access to these
technologies between rural and urban areas.   Currently, rural residents
have less Internet access, and find it more costly to obtain than in urban
areas.  According to the United States Department of Commerce, less than
one in thirty low-income households in rural areas have Internet access at
home.    

The Texas Legislature implemented the Development Corporation Act of 1979
as a mechanism for cities to expand economic development in their areas.
In E-Texas: Smaller, Smarter, Faster Government, the comptroller recommends
altering the definition of a project in the Development Corporation Act of
1979 to include telecommunications infrastructure necessary to provide
broadband or similar access to the Internet.  House Bill 925 expands the
definition of "project" such that an industrial development corporation may
promote the development and expansion of telecommunications infrastructure. 

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. 

ANALYSIS

House Bill 925 amends the Development Corporation Act of 1979 to expand the
definition of "project" such that an industrial development corporation may
promote the development and expansion of telecommunications infrastructure.

EFFECTIVE DATE

On passage, or if the Act does not receive the necessary vote, the Act
takes effect September 1, 2001.