75R6656 CBH-D                          

         By Sibley                                              S.B. No. 249

         Substitute the following for S.B. No. 249:

         By Turner of Harris                                C.S.S.B. No. 249

                                A BILL TO BE ENTITLED

 1-1                                   AN ACT

 1-2     relating to the telecommunications infrastructure fund.

 1-3           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

 1-4           SECTION 1.  Section 3.606(a), Public Utility Regulatory Act

 1-5     of 1995 (Article 1446c-0, Vernon's Texas Civil Statutes), is

 1-6     amended by amending Subdivision (5) and adding Subdivisions (10)

 1-7     and (11) to read as follows:

 1-8                 (5)  "School district" includes an independent school

 1-9     district, a common school district, and a rural high school

1-10     district [has the meaning assigned by Section 19.001, Education

1-11     Code].

1-12                 (10)  "Public school" means a public elementary or

1-13     secondary school, including an open-enrollment charter school, a

1-14     home-rule school district school, and a school with a campus or

1-15     campus program charter.

1-16                 (11)  "Taxable telecommunications receipts" means

1-17     taxable telecommunications receipts reported under Chapter 151, Tax

1-18     Code.

1-19           SECTION 2.  Section 3.606, Public Utility Regulatory Act of

1-20     1995 (Article 1446c-0, Vernon's Texas Civil Statutes), is amended

1-21     by amending Subsections (j)-(u) and adding Subsections (w) and (x)

1-22     to read as follows:

1-23           (j)  An annual assessment is imposed on each

1-24     telecommunications utility and each commercial mobile service

 2-1     provider doing business in this state.  The  assessment is imposed

 2-2     at the rate of 1.25 percent of the taxable telecommunications

 2-3     receipts of each telecommunications utility and  commercial mobile

 2-4     service provider subject to the assessment, subject to Subsection

 2-5     (k) of this section.

 2-6           (k)  The total amount deposited to the credit of the fund,

 2-7     excluding interest and loan repayments, may not exceed $1.5

 2-8     billion.  Not later than August 31 of each year, the comptroller

 2-9     shall determine the total amount, excluding interest and loan

2-10     repayments, that has been deposited to the credit of the fund

2-11     during that fiscal year and the preceding fiscal years.  If the

2-12     comptroller determines that a total of $1.2 billion or more,

2-13     excluding interest and loan repayments, has been deposited to the

2-14     credit of the fund, the comptroller shall impose  the assessment

2-15     during the next fiscal year at a rate that the comptroller

2-16     estimates is sufficient to produce the amount necessary to result

2-17     in the deposit in the fund of a total of not more than $1.5

2-18     billion, excluding interest and loan repayments.  The comptroller

2-19     may not collect the assessment during a fiscal year if the

2-20     comptroller determines after the yearly review that the total

2-21     amount deposited to the credit of the fund during that fiscal year

2-22     and the preceding fiscal years is $1.49 billion or more, excluding

2-23     interest and loan repayments, and it is not possible to impose the

2-24     assessment during the next fiscal year at a practical rate without

2-25     collecting more than a total of $1.5 billion, excluding interest

2-26     and loan repayments.

2-27           (l)  [The fund is composed of the telecommunications

 3-1     utilities account and the commercial mobile service providers

 3-2     account.  The telecommunications utilities account is financed by

 3-3     an annual assessment on all telecommunications utilities doing

 3-4     business in this state.  Each telecommunications utility shall pay

 3-5     the annual assessment in accordance with the ratio that the annual

 3-6     taxable telecommunications receipts reported by that

 3-7     telecommunications utility under Chapter 151, Tax Code, bears to

 3-8     the total annual taxable telecommunications receipts reported by

 3-9     all telecommunications utilities under Chapter 151, Tax Code.]

3-10           [(k)  The commercial mobile service providers account is

3-11     financed by an annual assessment on all commercial mobile service

3-12     providers doing business in this state.  Each commercial mobile

3-13     service provider shall pay the annual assessment in accordance with

3-14     the ratio that the annual taxable telecommunications receipts

3-15     reported by that provider under Chapter 151, Tax Code, bears to the

3-16     total annual taxable telecommunications receipts reported by all

3-17     commercial mobile service providers under Chapter 151, Tax Code.]

3-18           [(l)  For the fiscal year beginning September 1, 1995, and

3-19     for the nine fiscal years immediately following that year, for a

3-20     total of 10 years, the comptroller shall assess and collect a total

3-21     annual amount of $75 million from telecommunications utilities and

3-22     a total annual amount of $75 million from commercial mobile service

3-23     providers.  The amounts assessed against both the

3-24     telecommunications utilities and the commercial mobile service

3-25     providers shall be assessed and collected in each year without

3-26     respect to whether all of the funds previously collected and

3-27     deposited in either or both accounts have been disbursed or spent

 4-1     due to lack of demand or otherwise.]

 4-2           [(m)]  The comptroller may require telecommunications

 4-3     utilities and commercial mobile service providers to provide any

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

 4-5     comptroller provided by this section.  Any information provided to

 4-6     the comptroller by a telecommunications utility or commercial

 4-7     mobile service provider under this section is confidential and

 4-8     exempt from disclosure under Chapter 552, Government Code.

 4-9           (m)  The comptroller shall deposit 50 percent of the

4-10     [(n)  All] amounts collected by the comptroller [from

4-11     telecommunications utilities] under Subsection (j) [(l)] of this

4-12     section [shall be deposited] to the credit of the public schools

4-13     [telecommunications utilities] account in the telecommunications

4-14     infrastructure fund in the state treasury.  The comptroller shall

4-15     deposit the remainder of the [All] amounts collected by the

4-16     comptroller under Subsection (j) of this section [from commercial

4-17     mobile service providers under Subsection (l) of this section shall

4-18     be deposited] to the credit of the qualifying entities [commercial

4-19     mobile service providers] account in the telecommunications

4-20     infrastructure fund in the state treasury.  Interest earned on

4-21     money in an account shall be deposited to the credit of that

4-22     account.  Money in the fund may be appropriated only for a use

4-23     consistent with the purposes of this section.  [Sections 403.094

4-24     and 403.095, Government Code, do not apply to the fund or either

4-25     account.]

4-26           (n) [(o)]  From funds appropriated to the board, the

4-27     comptroller shall issue warrants as requested by the board in

 5-1     accordance with the purposes of this section, including warrants to

 5-2     grantees of the board in amounts certified by the board to the

 5-3     comptroller.

 5-4           (o) [(p)]  In addition to any appropriated funds, the board

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

 5-6     purposes of this section.

 5-7           (p) [(q)]  The board shall use money in the public schools

 5-8     [telecommunications utilities] account to award grants and loans in

 5-9     accordance with this section to fund equipment [purchases],

5-10     including computers, printers, computer labs, and video equipment,

5-11     for public schools and for intracampus and intercampus wiring to

5-12     enable those public schools to use the equipment.  The board shall

5-13     use money in the qualifying entities [commercial mobile service

5-14     providers] account for any purpose authorized by this section,

5-15     including equipment [purchases], wiring, material, program

5-16     development, training, installation costs, or any statewide

5-17     telecommunications network.

5-18           (q) [(r)]  Subject to the limitations prescribed by

5-19     Subsection (p) [(q)] of this section, the board may award grants to

5-20     projects and proposals that:

5-21                 (1)  provide equipment and infrastructure needed for

5-22     distance learning, information sharing programs of libraries, and

5-23     telemedicine services;

5-24                 (2)  develop and implement the initial or prototypical

5-25     delivery of courses and other distance learning material;

5-26                 (3)  train teachers, faculty, librarians, or

5-27     technicians in the use of distance learning or information sharing

 6-1     materials and equipment;

 6-2                 (4)  develop curricula and instructional material

 6-3     especially suited for delivery by telecommunications;

 6-4                 (5)  provide electronic information; or

 6-5                 (6)  establish or carry out information sharing

 6-6     programs.

 6-7           (r) [(s)]  Subject to the limitations prescribed by

 6-8     Subsection (p) [(q)] of this section, the board may award loans to

 6-9     projects and proposals to acquire equipment needed for distance

6-10     learning and telemedicine projects.

6-11           (s) [(t)]  In awarding grants and loans in accordance with

6-12     this section, the board shall give priority to projects and

6-13     proposals that:

6-14                 (1)  represent collaborative efforts involving multiple

6-15     schools, universities, or libraries;

6-16                 (2)  contribute matching funds from other sources;

6-17                 (3)  show promise of becoming self-sustaining;

6-18                 (4)  help users of information learn new ways to

6-19     acquire and use information through telecommunications;

6-20                 (5)  extend specific educational information and

6-21     knowledge services to groups not previously served, especially

6-22     those in rural and remote areas;

6-23                 (6)  result in more efficient or effective learning

6-24     than through conventional teaching;

6-25                 (7)  improve the effectiveness and efficiency of health

6-26     care delivery; or

6-27                 (8)  take advantage of distance learning opportunities

 7-1     in rural and urban school districts with disproportionate numbers

 7-2     of at-risk youths or with high dropout rates.

 7-3           (t)  The board shall adopt a master plan for infrastructure

 7-4     development.  The plan must cover a five-year period and be updated

 7-5     annually.  The plan must describe the project, timeline, and

 7-6     resource allocation targets for each year included in the plan.

 7-7     The board shall publish each proposed amendment to the plan and

 7-8     each proposed annual update in the Texas Register in accordance

 7-9     with Subchapter B, Chapter 2002, Government Code.

7-10           (u)  The Texas Higher Education Coordinating Board, the Texas

7-11     [Central] Education Agency, and the Texas State Library and

7-12     Archives Commission shall adopt policies and procedures in

7-13     consultation with the board that are designed to aid the board in

7-14     achieving the purposes of this section.

7-15           (w)  The board may adopt rules as necessary to administer

7-16     this section.

7-17           (x)  If a board member is an employee of an entity that

7-18     applies for a grant or loan under this section, the board member,

7-19     before a vote on the grant or loan, shall disclose the fact of the

7-20     member's employment.  The disclosure must be entered into the

7-21     minutes of the meeting.  The board member may not vote on or

7-22     otherwise participate in the awarding of the grant or loan.  If the

7-23     board member does not comply with this subsection, the entity is

7-24     not eligible for the grant or loan.

7-25           SECTION 3.  (a)  A reference in law to the telecommunications

7-26     utilities account means the public schools account.  A reference in

7-27     law to the commercial mobile service providers account means the

 8-1     qualifying entities account.

 8-2           (b)  On the effective date of this Act:

 8-3                 (1)  money in the telecommunications utilities account

 8-4     is transferred to the public schools account; and

 8-5                 (2)  money in the commercial mobile service providers

 8-6     account is transferred to the qualifying entities account.

 8-7           (c)  The validity of an act done, an obligation incurred, or

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

 8-9     of this section is not affected by the transfer.

8-10           SECTION 4.  (a)  This Act takes effect on the first day of

8-11     the first calendar quarter beginning on or after the earliest date

8-12     that it may take effect under Section 39, Article III, Texas

8-13     Constitution, and applies only to an assessment that accrues on or

8-14     after that date.

8-15           (b)  The change in law made by this Act does not affect

8-16     liability for an assessment that accrued before the effective date

8-17     of this Act.  That liability continues in effect as if this Act had

8-18     not been enacted, and the former law is continued in effect for the

8-19     collection of an assessment due and for civil and criminal

8-20     enforcement of the liability for that assessment.

8-21           SECTION 5.  The importance of this legislation and the

8-22     crowded condition of the calendars in both houses create an

8-23     emergency and an imperative public necessity that the

8-24     constitutional rule requiring bills to be read on three several

8-25     days in each house be suspended, and this rule is hereby suspended,

8-26     and that this Act take effect and be in force according to its

8-27     terms, and it is so enacted.