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


Senate Research CenterC.S.H.B. 3325
78R16432 MTB-FBy: Keffer, Jim (Staples)
Business & Commerce
5/21/2003
Committee Report (Substituted)


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.  C.S.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

This bill does not expressly grant any additional rulemaking authority to
a state officer, institution, or agency. 

SECTION BY SECTION ANALYSIS

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

SUBCHAPTER O.  COMMUNITY TELECOMMUNICATIONS ALLIANCE PROGRAM

Sec. 487.651.  DEFINITIONS.  Defines "board," "community
telecommunications alliance" and "program."  

Sec. 487.652.  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)  Prohibits this chapter from being construed to:

(1)  expand eligibility for private network services under Section
58.253(a) or 59.072(a), Utilities Code, to persons not eligible to
purchase the services; or 
   (2)  permit the direct or indirect sharing or resale of private network
services with persons not eligible to purchase the services. 

 (d)  Requires a community telecommunications alliance created under this
section to offer certain local entities the opportunity to be include in
the alliance. 

Sec. 487.653.  REPORT TO THE LEGISLATURE.  Requires ORCA and TIF to
jointly submit to 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. 

Sec.  487.654  PROHIBITION.  Prohibits a community telecommunications
alliance from directly or indirectly performing certain functions. 
  
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, including one that assists the community
telecommunications alliance program. 

SECTION 3.  Effective date:  September 1, 2003.