By:  Sibley                                   S.B. No. 249

                                A BILL TO BE ENTITLED

                                       AN ACT

 1-1     relating to the telecommunications infrastructure fund.

 1-2           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

 1-3           SECTION 1.  Subsection (a), Section 3.606, Public Utility

 1-4     Regulatory Act of 1995 (Article 1446c-0, Vernon's Texas Civil

 1-5     Statutes), is amended by amending Subdivision (5) and adding

 1-6     Subdivision (10) to read as follows:

 1-7                 (5)  "School district" includes an independent school

 1-8     district, a common school district, and a rural high school

 1-9     district [has the meaning assigned by Section 19.001, Education

1-10     Code].

1-11                 (10)  "Taxable telecommunications receipts" means

1-12     taxable telecommunications receipts reported under Chapter 151, Tax

1-13     Code.

1-14           SECTION 2.  Subsections (j) through (v), Section 3.606,

1-15     Public Utility Regulatory Act of 1995 (Article 1446c-0, Vernon's

1-16     Texas Civil Statutes), are amended to read as follows:

1-17           (j)  An annual assessment is imposed on each

1-18     telecommunications utility and each commercial mobile service

1-19     provider doing business in this state.  The  assessment is imposed

1-20     at the rate of 1.25 percent of the taxable telecommunications

1-21     receipts of each telecommunications utility and  commercial mobile

1-22     service provider subject to the assessment, subject to Subsection

1-23     (k) of this section.

 2-1           (k)  The total amount deposited to the credit of the fund,

 2-2     excluding interest and loan repayments, may not exceed $1.5

 2-3     billion.  Not later than August 31 of each year, the comptroller

 2-4     shall determine the total amount, excluding interest and loan

 2-5     repayments, that has been deposited to the credit of the fund

 2-6     during that fiscal year and the preceding fiscal years.  If the

 2-7     comptroller determines that a total of $1.2 billion or more,

 2-8     excluding interest and loan repayments, has been deposited to the

 2-9     credit of the fund, the comptroller shall impose  the assessment

2-10     during the next fiscal year at a rate that the comptroller

2-11     estimates is sufficient to produce the amount necessary to result

2-12     in the deposit in the fund of a total of not more than $1.5

2-13     billion, excluding interest and loan repayments.  The comptroller

2-14     may not collect the assessment during a fiscal year if the

2-15     comptroller determines after the yearly review that the total

2-16     amount deposited to the credit of the fund during that fiscal year

2-17     and the preceding fiscal years is $1.49 billion or more, excluding

2-18     interest and loan repayments, and it is not possible to impose the

2-19     assessment during the next fiscal year at a practical rate without

2-20     collecting more than a total of $1.5 billion, excluding interest

2-21     and loan repayments.

2-22           (l)  [The fund is composed of the telecommunications

2-23     utilities account and the commercial mobile service providers

2-24     account.  The telecommunications utilities account is financed by

2-25     an annual assessment on all telecommunications utilities doing

 3-1     business in this state.  Each telecommunications utility shall pay

 3-2     the annual assessment in accordance with the ratio that the annual

 3-3     taxable telecommunications receipts reported by that

 3-4     telecommunications utility under Chapter 151, Tax Code, bears to

 3-5     the total annual taxable telecommunications receipts reported by

 3-6     all telecommunications utilities under Chapter 151, Tax Code.]

 3-7           [(k)  The commercial mobile service providers account is

 3-8     financed by an annual assessment on all commercial mobile service

 3-9     providers doing business in this state. Each commercial mobile

3-10     service provider shall pay the annual assessment in accordance with

3-11     the ratio that the annual taxable telecommunications receipts

3-12     reported by that provider under Chapter 151, Tax Code, bears to the

3-13     total annual taxable telecommunications receipts reported by all

3-14     commercial mobile service providers under Chapter 151, Tax Code.]

3-15           [(l)  For the fiscal year beginning September 1, 1995, and

3-16     for the nine fiscal years immediately following that year, for a

3-17     total of 10 years, the comptroller shall assess and collect a total

3-18     annual amount of $75 million from telecommunications utilities and

3-19     a total annual amount of $75 million from commercial mobile service

3-20     providers.  The amounts assessed against both the

3-21     telecommunications utilities and the commercial mobile service

3-22     providers shall be assessed and collected in each year without

3-23     respect to whether all of the funds previously collected and

3-24     deposited in either or both accounts have been disbursed or spent

3-25     due to lack of demand or otherwise.]

 4-1           [(m)]  The comptroller may require telecommunications

 4-2     utilities and commercial mobile service providers to provide any

 4-3     reports and information as are needed to fulfill the duties of the

 4-4     comptroller provided by this section.  Any information provided to

 4-5     the comptroller by a telecommunications utility or commercial

 4-6     mobile service provider under this section is confidential and

 4-7     exempt from disclosure under Chapter 552, Government Code.

 4-8           (m)  The comptroller shall deposit 50 percent of the

 4-9     [(n)  All] amounts collected by the comptroller [from

4-10     telecommunications utilities] under Subsection (j) [(l)] of this

4-11     section [shall be deposited] to the credit of the public schools

4-12     [telecommunications utilities] account in the telecommunications

4-13     infrastructure fund in the state treasury.  The comptroller shall

4-14     deposit the remainder of the [All] amounts collected by the

4-15     comptroller under Subsection (j) of this section [from commercial

4-16     mobile service providers under Subsection (l) of this section shall

4-17     be deposited] to the credit of the qualifying entities [commercial

4-18     mobile service providers] account in the telecommunications

4-19     infrastructure fund in the state treasury.  Interest earned on

4-20     money in an account shall be deposited to the credit of that

4-21     account. Money in the fund may be appropriated only for a use

4-22     consistent with the purposes of this section.  [Sections 403.094

4-23     and 403.095, Government Code, do not apply to the fund or either

4-24     account.]

4-25           (n) [(o)]  From funds appropriated to the board, the

 5-1     comptroller shall issue warrants as requested by the board in

 5-2     accordance with the purposes of this section, including warrants to

 5-3     grantees of the board in amounts certified by the board to the

 5-4     comptroller.

 5-5           (o) [(p)]  In addition to any appropriated funds, the board

 5-6     may accept gifts, grants, and donations and use them for the

 5-7     purposes of this section.

 5-8           (p) [(q)]  The board shall use money in the public schools

 5-9     [telecommunications utilities] account to award grants and loans in

5-10     accordance with this section to fund equipment [purchases],

5-11     including computers, printers, computer labs, and video equipment,

5-12     for public schools and for intracampus and intercampus wiring to

5-13     enable those public schools to use the equipment.  The board shall

5-14     use money in the qualifying entities [commercial mobile service

5-15     providers] account for any purpose authorized by this section,

5-16     including equipment [purchases], wiring, material, program

5-17     development, training, installation costs, or any statewide

5-18     telecommunications network.

5-19           (q) [(r)]  Subject to the limitations prescribed by

5-20     Subsection (p) [(q)] of this section, the board may award grants to

5-21     projects and proposals that:

5-22                 (1)  provide equipment and infrastructure needed for

5-23     distance learning, information sharing programs of libraries, and

5-24     telemedicine services;

5-25                 (2)  develop and implement the initial or prototypical

 6-1     delivery of courses and other distance learning material;

 6-2                 (3)  train teachers, faculty, librarians, or

 6-3     technicians in the use of distance learning or information sharing

 6-4     materials and equipment;

 6-5                 (4)  develop curricula and instructional material

 6-6     especially suited for delivery by telecommunications;

 6-7                 (5)  provide electronic information; or

 6-8                 (6)  establish or carry out information sharing

 6-9     programs.

6-10           (r) [(s)]  Subject to the limitations prescribed by

6-11     Subsection (p) [(q)] of this section, the board may award loans to

6-12     projects and proposals to acquire equipment needed for distance

6-13     learning and telemedicine projects.

6-14           (s) [(t)]  In awarding grants and loans in accordance with

6-15     this section, the board shall give priority to projects and

6-16     proposals that:

6-17                 (1)  represent collaborative efforts involving multiple

6-18     schools, universities, or libraries;

6-19                 (2)  contribute matching funds from other sources;

6-20                 (3)  show promise of becoming self-sustaining;

6-21                 (4)  help users of information learn new ways to

6-22     acquire and use information through telecommunications;

6-23                 (5)  extend specific educational information and

6-24     knowledge services to groups not previously served, especially

6-25     those in rural and remote areas;

 7-1                 (6)  result in more efficient or effective learning

 7-2     than through conventional teaching;

 7-3                 (7)  improve the effectiveness and efficiency of health

 7-4     care delivery; or

 7-5                 (8)  take advantage of distance learning opportunities

 7-6     in rural and urban school districts with disproportionate numbers

 7-7     of at-risk youths or with high dropout rates.

 7-8           (t) [(u)]  The Texas Higher Education Coordinating Board, the

 7-9     Texas [Central] Education Agency, and the Texas State Library and

7-10     Archives Commission shall adopt policies and procedures in

7-11     consultation with the board that are designed to aid the board in

7-12     achieving the purposes of this section.

7-13           (u) [(v)]  In distributing funds to public schools, the board

7-14     shall take into account the relative property wealth per student of

7-15     the recipient school districts and recognize the unique needs of

7-16     rural communities.

7-17           SECTION 3.  (a)  A reference in law to the

7-18     "telecommunications utilities account" means the "public schools

7-19     account."  A reference in law to the "commercial mobile service

7-20     providers account" means the "qualifying entities account."

7-21           (b)  On the effective date of this Act:

7-22                 (1)  money in the telecommunications utilities account

7-23     is transferred to the public schools account; and

7-24                 (2)  money in the commercial mobile service providers

7-25     account is transferred to the qualifying entities account.

 8-1           (c)  The validity of an act done, an obligation incurred, or

 8-2     a right accrued before the transfer of money under Subsection (b)

 8-3     of this section is not affected by the transfer.

 8-4           SECTION 4.  (a)  This Act takes effect on the first day of

 8-5     the first calendar quarter beginning on or after the earliest date

 8-6     that it may take effect under Section 39, Article III, Texas

 8-7     Constitution, and applies only to an assessment that accrues on or

 8-8     after that date.

 8-9           (b)  The change in law made by this Act does not affect

8-10     liability for an assessment that accrued before the effective date

8-11     of this Act.  That liability continues in effect as if this Act had

8-12     not been enacted, and the former law is continued in effect for the

8-13     collection of an assessment due and for civil and criminal

8-14     enforcement of the liability for that assessment.

8-15           SECTION 5.  The importance of this legislation and the

8-16     crowded condition of the calendars in both houses create an

8-17     emergency and an imperative public necessity that the

8-18     constitutional rule requiring bills to be read on three several

8-19     days in each house be suspended, and this rule is hereby suspended,

8-20     and that this Act take effect and be in force according to its

8-21     terms, and it is so enacted.