SRC-TJG, LBB H.B. 3325 78(R)   BILL ANALYSIS


Senate Research Center   H.B. 3325
By: Keffer, Jim (Staples)
Business & Commerce
5/18/2003
Engrossed


DIGEST AND PURPOSE 

Currently, few mechanisms exist that allow small and rural communities to
create associations in an effort to access funds for economic development
and to improve technology.  The communities often lack the knowledge of
where and how to apply for grants and funding for projects.  H.B. 3325
creates the Community Telecommunications Alliance Program to build
associations for public and private entities to promote economic
development and school health technologies. 
 
RULEMAKING AUTHORITY

Rulemaking authority is expressly granted to the Office of Rural Community
Affairs and the Telecommunications Infrastructure Fund Board in SECTION 1
(Section 487.602, Government Code) of this bill. 

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Chapter 487, Government Code, by adding Subchapter N,
as follows: 

SUBCHAPTER N.  COMMUNITY TELECOMMUNICATIONS ALLIANCE PROGRAM

 Sec. 487.601.  DEFINITIONS.  Defines "community telecommunications
alliance" and   "program."  

Sec. 487.602.  MEMORANDUM OF UNDERSTANDING.  (a)  Requires the Office of
Rural Community Affairs (ORCA) and the Telecommunications Infrastructure
Fund Board (TIF) by rule to adopt a memorandum of understanding
establishing the community telecommunications alliance program.  Requires
the program to perform certain functions. 

(b)  Requires each community telecommunications alliance established under
this section to have an advisory council with representation from each of
the following:  

   (1)  a local nonprofit organization;
   (2)  a local county-elected official;
   (3)  a local city-elected official;
   (4)  a local telecommunications provider;
   (5)  a local economic development group;
   (6)  the local financial community; and
   (7)  a local information services provider.

(c)  Provides that eligibility for private network services under this
section is limited to the entities listed in Sections 58.253(a) and
59.072(a), Utilities Code, as appropriate. 

(d)  Requires a community telecommunications alliance to make available
the opportunity for public and school libraries, public and nonprofit
health care facilities, and local institutions of higher education to be
included in the  community telecommunications alliance. 

Sec. 487.603.  REPORT TO THE LEGISLATURE.  Requires ORCA to submit to the
legislature a report detailing the grant activities of the program and
grant recipients, no later than January 1 of each odd-numbered year.
Requires the report to include certain information. 
  
SECTION 2.  Amends Section 57.047(c), Utilities Code, to require TIF, in
awarding a grant or loan under this subchapter, to give priority to
certain projects or proposals. 

SECTION 3.  Effective date:  September 1, 2003.