C.S.H.B. 3325 78(R)    BILL ANALYSIS


C.S.H.B. 3325
By: Keffer, Jim
Economic Development
Committee Report (Substituted)



BACKGROUND AND PURPOSE 

Access to information and services has traditionally been a challenge for
rural Texans.  HB 3325 addresses this problem by amending the Government
Code to create the Community Telecommunications Alliance Program.   The
Program directs the Office of Rural Community Affairs along with the
Telecommunications Infrastructure Fund Board to coordinate with local
communities to fund grants to promote economic development and school
health projects. 

RULEMAKING AUTHORITY

It is the committee's opinion that rulemaking authority is expressly
granted to the Office of Rural Community Affairs and the
Telecommunications Infrastructure Fund Board  in SECTION 1 (Section
487.452, Government Code) of this bill. 

ANALYSIS

HB 3325 requires the Office of Rural Community Affairs and the
Telecommunications Infrastructure Fund Board to adopt a memorandum of
understanding to establishing the telecommunications alliance program.
The program is required to assist local communities in applying for
grants, facilitating access to telecommunications services, and creating
school health technology projects. 

HB 3325 requires the Office of Rural Community Affairs to report to the
Legislature the grants and grant recipients of the program. 

 HB 3325 amends the Utilities Code to add the Community Telecommunications
Alliance Program to the list of projects that the Telecommunications
Infrastructure Fund Board prioritizes when offering grant money. 

EFFECTIVE DATE

September 1, 2003.

COMPARISON OF ORIGINAL TO SUBSTITUTE

The substitute is written  in Legislative Council style and format.

The substitute changes the definition of "community telecommunications
alliance" to emphasize telecommunications and information services
provided through the private sector. 

The substitute adds language to ensure that alliances created under this
program do not directly compete with local businesses, and
telecommunications or information service providers, and that a network
created under this program cannot be resold to a direct competitor of a
local private sector provider. 

The substitute adds economically depressed areas to the list of
prioritized service areas.