HBA-EDN C.S.H.B. 2156 77(R)BILL ANALYSIS Office of House Bill AnalysisC.S.H.B. 2156 By: Danburg State Affairs 4/12/2001 Committee Report (Substituted) BACKGROUND AND PURPOSE Under current law, automatic enrollment databases are required for telecommunications discounts and for electric discounts to low-income customers. Merging these databases would make the administration of both programs more efficient. C.S.H.B. 2156 provides for an integrated eligibility process for telecommunications and electric discounts for low-income customers, establishes a universal service fund to finance the integrated eligibility process, and abolishes the tel-assistance service program. RULEMAKING AUTHORITY It is the opinion of the Office of House Bill Analysis that rulemaking authority is expressly delegated to the Public Utility Commission in SECTION 1 (Section 17.007, Utilities Code) and in SECTION 2 (Section 56.021, Utilities Code) of this bill. ANALYSIS C.S.H.B. 2156 amends the Utilities Code to require the Public Utility Commission (PUC), by rule, to provide for an integrated eligibility process for customer service discounts, including discounts for customers under the system benefit fund or the lifeline service. The bill requires PUC to adopt and enforce rules requiring local exchange companies to establish a universal service fund to finance the implementation and administration of an integrated eligibility process for customer service discounts relating to telecommunications services, including outreach expenses the PUC determines are reasonable and necessary. The bill deletes the provision providing for the reimbursement of telecommunications providers from the universal service fund for revenue lost by providing tel- assistance service. The bill requires the system benefit fund to provide funding for reimbursement to the PUC and to the Texas Department of Human Services for expenses incurred in the implementation and administration of an integrated eligibility process for customer service discounts relating to retail electric service, including outreach expenses the PUC determines are reasonable and necessary. C.S.H.B. 2156 abolishes the tel-assistance service program and transfers its funds, employees, and resources to the lifeline service program. The bill authorizes a telecommunications provider to be reimbursed from the universal service fund for providing a higher benefit to a person enrolled in the lifeline service program due to the abolishment of the tel-assistance service program. EFFECTIVE DATE September 1, 2001. COMPARISON OF ORIGINAL TO SUBSTITUTE C.S.H.B. 2156 modifies the original by requiring the Public Utility Commission (PUC) to adopt and enforce rules requiring local exchange companies to establish a universal service fund to finance the implementation and administration of an integrated eligibility process for customer service discounts relating to telecommunications services. The substitute requires the system benefit fund to reimburse the PUC and the Texas Department of Human Services for expenses incurred in the implementation and administration of an integrated eligibility process for customer service discounts relating to retail electric service. The substitute abolishes the tel-assistance service program and transfers all funds, employees, and resources to the lifeline service program on September 1, 2001. The substitute requires all persons receiving benefits under the tel-assistance service program to be automatically enrolled in the lifeline service program and provides that if a person receives a greater benefit under the tel-assistance service program than they will receive under the lifeline program, the telecommunications provider is required to continue the higher benefit and may be reimbursed for the higher benefit from the universal service program.