SRC-LBB S.B. 1436 78(R) BILL ANALYSIS Senate Research Center S.B. 1436 78R4851 MTB-FBy: Staples Business & Commerce 4/17/2003 As Filed 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. As proposed, S.B. 1436 creates the Telecommunications Alliance Program to build associations of 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 487.452, Government Code) of this bill. SECTION BY SECTION ANALYSIS SECTION 1. Amends Chapter 487, Government Code, by adding Subchapter K, as follows: SUBCHAPTER K. COMMUNITY TELECOMMUNICATIONS ALLIANCE PROGRAM Sec. 487.451. DEFINITIONS. Defines "community telecommunications alliance" and "program." Sec. 487.452. MEMORANDUM OF UNDERSTANDING. (a) Requires the Office of Rural Community Affairs (RCA) 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 certain groups. (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. Sec. 487.453. REPORT TO THE LEGISLATURE. Requires RCA, not later than January 1 of each odd-numbered year, to submit to the legislature a report detailing the grant activities of the program and grant recipients. Requires the report to include certain information. SECTION 2. Amends Section 57.047(c), Utilities Code, to include a proposal that was developed in connection with a community telecommunications alliance program created under Subchapter K, Chapter 487, Government Code regarding awarding a grant or loan under this subchapter, by TIF. SECTION 3. Effective date: September 1, 2003.