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.