By Turner of Harris                                     H.B. No. 98

      75R1091(1) CBH                           

                              TEXAS LEGISLATIVE COUNCIL

 1-1                              Preliminary Draft

 1-2     By ____________________                               __B. No. ____

 1-3                                   AN ACT

 1-4     relating to the telecommunications infrastructure fund.

 1-5           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

 1-6           SECTION 1.  Section 3.606(a)(5), Public Utility Regulatory

 1-7     Act of 1995 (Article 1446c-0, Vernon's Texas Civil Statutes), is

 1-8     amended to read as follows:

 1-9                 (5)  "School district" includes an independent school

1-10     district, a common school district, and a rural high school

1-11     district [has  the meaning assigned by Section 19.001, Education

1-12     Code].

1-13           SECTION 2.  Sections 3.606(j)-(v), Public Utility Regulatory

1-14     Act of 1995 (Article 1446c-0, Vernon's Texas Civil Statutes), are

1-15     amended to read as follows:

1-16           (j)  An annual assessment is imposed on each

1-17     telecommunications utility and each commercial mobile service

1-18     provider doing business in this state.  The  assessment is imposed

1-19     at the rate of 1.25 percent of the taxable telecommunications

1-20     receipts of each telecommunications utility and  commercial mobile

1-21     service provider subject to the assessment [The fund is composed of

1-22     the telecommunications utilities account and the commercial mobile

1-23     service providers account.  The  telecommunications utilities

1-24     account is financed by an annual assessment on all

1-25     telecommunications utilities doing business in this state.  Each

1-26     telecommunications utility shall pay the annual assessment in

1-27     accordance with the ratio that the annual taxable

1-28     telecommunications receipts reported by that telecommunications

 2-1     utility under Chapter 151, Tax Code, bears to the total annual

 2-2     taxable telecommunications receipts reported by all

 2-3     telecommunications utilities under Chapter 151, Tax Code].

 2-4           (k)  [The commercial mobile service providers account is

 2-5     financed by an annual assessment on all commercial mobile service

 2-6     providers doing  business in this state.  Each commercial mobile

 2-7     service provider shall pay the annual assessment in accordance with

 2-8     the ratio that the annual taxable telecommunications receipts

 2-9     reported by that provider under Chapter 151, Tax Code, bears to the

2-10     total annual taxable telecommunications receipts reported by all

2-11     commercial mobile service providers under Chapter 151, Tax Code.]

2-12           [(l)  For the fiscal year beginning September 1, 1995, and

2-13     for the nine fiscal years immediately following that year, for a

2-14     total of 10 years,  the comptroller shall assess and collect a

2-15     total annual amount of $75 million from telecommunications

2-16     utilities and a total annual amount of $75 million from commercial

2-17     mobile service providers.  The amounts assessed against both the

2-18     telecommunications utilities and the commercial mobile service

2-19     providers shall be assessed and collected in each year without

2-20     respect to whether all of the funds previously collected and

2-21     deposited in either or both accounts have been disbursed or spent

2-22     due to lack of demand or otherwise.]

2-23           [(m)]  The comptroller may require telecommunications

2-24     utilities and commercial mobile service providers to provide any

2-25     reports and information as are needed to fulfill the duties of the

2-26     comptroller provided by this section.  Any information provided to

2-27     the comptroller by a telecommunications utility or commercial

 3-1     mobile service provider under this section is confidential and

 3-2     exempt from disclosure under Chapter 552, Government Code.

 3-3           (l)  The comptroller shall deposit 50 percent of the

 3-4     [(n)  All] amounts collected by the comptroller [from

 3-5     telecommunications utilities] under Subsection (j) [(l)] of this

 3-6     section [shall be deposited] to the credit of the public  schools

 3-7     [telecommunications utilities] account in the telecommunications

 3-8     infrastructure fund in the state treasury.  The comptroller  shall

 3-9     deposit the remainder of the [All] amounts collected by the

3-10     comptroller under Subsection (j) of this section [from commercial

3-11     mobile service providers under Subsection (l) of this section shall

3-12     be deposited] to the credit of the ________ [commercial mobile

3-13     service providers] account in the telecommunications infrastructure

3-14     fund in the state treasury.  Interest earned on money in an account

3-15     shall be deposited to the credit of that account.   Money in the

3-16     fund may be appropriated only for a use consistent with the

3-17     purposes of this section.  [Sections 403.094 and 403.095,

3-18     Government Code, do not apply to the fund or either account.]

3-19           (m) [(o)]  From funds appropriated to the board, the

3-20     comptroller shall issue warrants as requested by the board in

3-21     accordance with the purposes of this section, including warrants to

3-22     grantees of the board in amounts certified by the board to the

3-23     comptroller.

3-24           (n) [(p)]  In addition to any appropriated funds, the board

3-25     may accept gifts, grants, and donations and use them for  the

3-26     purposes of this section.

3-27           (o) [(q)]  The board shall use money in the public schools

 4-1     [telecommunications utilities] account to  award grants and loans

 4-2     in accordance with this section to fund equipment [purchases],

 4-3     including computers, printers, computer labs, and video  equipment,

 4-4     for public schools and for intracampus and intercampus wiring to

 4-5     enable those public schools to use the equipment.  The board shall

 4-6     use money in the ________ [commercial mobile service providers]

 4-7     account for any purpose authorized by this section, including

 4-8     equipment [purchases], wiring, material, program development,

 4-9     training,  installation costs, or any statewide telecommunications

4-10     network.

4-11           (p) [(r)]  Subject to the limitations prescribed by

4-12     Subsection (o) [(q)] of this section, the board may  award grants

4-13     to projects and proposals that:

4-14                 (1)  provide equipment and infrastructure needed for

4-15     distance learning, information sharing programs of libraries, and

4-16     telemedicine services;

4-17                 (2)  develop and implement the initial or prototypical

4-18     delivery of courses and other distance learning material;

4-19                 (3)  train teachers, faculty, librarians, or

4-20     technicians in the use of distance learning or information sharing

4-21     materials and equipment;

4-22                 (4)  develop curricula and instructional material

4-23     especially suited for delivery by telecommunications;

4-24                 (5)  provide electronic information; or

4-25                 (6)  establish or carry out information sharing

4-26     programs.

4-27           (q) [(s)]  Subject to the limitations prescribed by

 5-1     Subsection (o) [(q)] of this section, the board may  award loans to

 5-2     projects and proposals to acquire equipment needed for distance

 5-3     learning and telemedicine projects.

 5-4           (r) [(t)]  In awarding grants and loans in accordance with

 5-5     this section, the board shall give priority to projects and

 5-6     proposals that:

 5-7                 (1)  represent collaborative efforts involving multiple

 5-8     schools, universities, or libraries;

 5-9                 (2)  contribute matching funds from other sources;

5-10                 (3)  show promise of becoming self-sustaining;

5-11                 (4)  help users of information learn new ways to

5-12     acquire and use information through telecommunications;

5-13                 (5)  extend specific educational information and

5-14     knowledge services to groups not previously served, especially

5-15     those in rural and remote areas;

5-16                 (6)  result in more efficient or effective learning

5-17     than through conventional teaching;

5-18                 (7)  improve the effectiveness and efficiency of health

5-19     care delivery; or

5-20                 (8)  take advantage of distance learning opportunities

5-21     in rural and urban school districts with disproportionate numbers

5-22     of at-risk youths or with high dropout rates.

5-23           (s)  The board shall adopt a master plan for infrastructure

5-24     development.  The plan must cover a five-year period and be updated

5-25     annually.  The  plan must describe the project, timeline, and

5-26     resource allocation targets for each year included in the plan.

5-27     The board shall publish the plan for public comment after:

 6-1                 (1)  the initial development of the plan;

 6-2                 (2)  each amendment; and

 6-3                 (3)  each annual update.

 6-4           (t) [(u)]  The Texas Higher Education Coordinating Board, the

 6-5     Central Education Agency, and the Texas State Library  and Archives

 6-6     Commission shall adopt policies and procedures in consultation with

 6-7     the board that are designed to aid the board in achieving the

 6-8     purposes of this section.

 6-9           (u) [(v)]  In distributing funds to public schools, the board

6-10     shall take into account the relative property wealth per student of

6-11     the recipient school districts and recognize the unique needs of

6-12     rural communities.

6-13           SECTION 3.  (a)  This Act takes effect on the first day of

6-14     the first calendar quarter beginning on or after the earliest date

6-15     that it may take effect under Section 39, Article III, Texas

6-16     Constitution, and applies only to an assessment made on or after

6-17     that date.

6-18           (b)  The change in law made by this Act does not affect

6-19     liability for an assessment that accrued before the effective date

6-20     of this Act.  That liability continues in effect as if this Act had

6-21     not been enacted, and the former law is continued in effect for the

6-22     collection of assessments due and for civil and criminal

6-23     enforcement of the liability for that assessment.

6-24           SECTION 4.  The importance of this legislation and the

6-25     crowded condition of the calendars in both houses create an

6-26     emergency and an imperative public necessity that the

6-27     constitutional rule requiring bills to be read on three several

 7-1     days in each house be suspended, and this rule is hereby suspended,

 7-2     and that this Act take effect and be in force according to its

 7-3     terms, and it is so enacted.