By Sibley                                        S.B. No. 249

      75R538 CBH-D                           

                                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 Subdivision (10) to

 1-7     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)  "Taxable telecommunications receipts" means

1-13     taxable telecommunications receipts reported under Chapter 151, Tax

1-14     Code.

1-15           SECTION 2.  Sections 3.606(j)-(v), Public Utility Regulatory

1-16     Act of 1995 (Article 1446c-0, Vernon's Texas Civil Statutes), are

1-17     amended to read as follows:

1-18           (j)  An annual assessment is imposed on each

1-19     telecommunications utility and each commercial mobile service

1-20     provider doing business in this state.  The  assessment is imposed

1-21     at the rate of 1.25 percent of the taxable telecommunications

1-22     receipts of each telecommunications utility and  commercial mobile

1-23     service provider subject to the assessment, subject to Subsection

1-24     (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

2-26     business in this state.  Each telecommunications utility shall pay

2-27     the annual assessment in accordance with the ratio that the annual

 3-1     taxable telecommunications receipts reported by that

 3-2     telecommunications utility under Chapter 151, Tax Code, bears to

 3-3     the total annual taxable telecommunications receipts reported by

 3-4     all telecommunications utilities under Chapter 151, Tax Code.]

 3-5           [(k)  The commercial mobile service providers account is

 3-6     financed by an annual assessment on all commercial mobile service

 3-7     providers doing  business in this state.  Each commercial mobile

 3-8     service provider shall pay the annual assessment in accordance with

 3-9     the ratio that the annual taxable telecommunications receipts

3-10     reported by that provider under Chapter 151, Tax Code, bears to the

3-11     total annual taxable telecommunications receipts reported by all

3-12     commercial mobile service providers under Chapter 151, Tax Code.]

3-13           [(l)  For the fiscal year beginning September 1, 1995, and

3-14     for the nine fiscal years immediately following that year, for a

3-15     total of 10 years,  the comptroller shall assess and collect a

3-16     total annual amount of $75 million from telecommunications

3-17     utilities and a total annual amount of $75 million from commercial

3-18     mobile service providers.  The amounts assessed against both the

3-19     telecommunications utilities and the commercial mobile service

3-20     providers shall be assessed and collected in each year without

3-21     respect to whether all of the funds previously collected and

3-22     deposited in either or both accounts have been disbursed or spent

3-23     due to lack of demand or otherwise.]

3-24           [(m)]  The comptroller may require telecommunications

3-25     utilities and commercial mobile service providers to provide any

3-26     reports and information as are needed to fulfill the duties of the

3-27     comptroller provided by this section.  Any information provided to

 4-1     the comptroller by a telecommunications utility or commercial

 4-2     mobile service provider under this section is confidential and

 4-3     exempt from disclosure under Chapter 552, Government Code.

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

 4-5     [(n)  All] amounts collected by the comptroller [from

 4-6     telecommunications utilities] under Subsection (j) [(l)] of this

 4-7     section [shall be deposited] to the credit of the public  schools

 4-8     [telecommunications utilities] account in the telecommunications

 4-9     infrastructure fund in the state treasury.  The comptroller  shall

4-10     deposit the remainder of the [All] amounts collected by the

4-11     comptroller under Subsection (j) of this section [from commercial

4-12     mobile service providers under Subsection (l) of this section shall

4-13     be deposited] to the credit of the qualifying entities [commercial

4-14     mobile service providers] account in the telecommunications

4-15     infrastructure fund in the state treasury.  Interest earned on

4-16     money in an account shall be deposited to the credit of that

4-17     account.  Money in the fund may be appropriated only for a use

4-18     consistent with the purposes of this section.  [Sections 403.094

4-19     and 403.095, Government Code, do not apply to the fund or either

4-20     account.]

4-21           (n) [(o)]  From funds appropriated to the board, the

4-22     comptroller shall issue warrants as requested by the board in

4-23     accordance with the purposes of this section, including warrants to

4-24     grantees of the board in amounts certified by the board to the

4-25     comptroller.

4-26           (o) [(p)]  In addition to any appropriated funds, the board

4-27     may accept gifts, grants, and donations and use them for  the

 5-1     purposes of this section.

 5-2           (p) [(q)]  The board shall use money in the public schools

 5-3     [telecommunications utilities] account to  award grants and loans

 5-4     in accordance with this section to fund equipment [purchases],

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

 5-6     for public schools and for intracampus and intercampus wiring to

 5-7     enable those public schools to use the equipment.  The board shall

 5-8     use money in the qualifying entities [commercial mobile service

 5-9     providers]  account for any purpose authorized by this section,

5-10     including equipment [purchases], wiring, material, program

5-11     development, training,  installation costs, or any statewide

5-12     telecommunications network.

5-13           (q) [(r)]  Subject to the limitations prescribed by

5-14     Subsection (p) [(q)] of this section, the board may  award grants

5-15     to projects and proposals that:

5-16                 (1)  provide equipment and infrastructure needed for

5-17     distance learning, information sharing programs of libraries, and

5-18     telemedicine services;

5-19                 (2)  develop and implement the initial or prototypical

5-20     delivery of courses and other distance learning material;

5-21                 (3)  train teachers, faculty, librarians, or

5-22     technicians in the use of distance learning or information sharing

5-23     materials and equipment;

5-24                 (4)  develop curricula and instructional material

5-25     especially suited for delivery by telecommunications;

5-26                 (5)  provide electronic information; or

5-27                 (6)  establish or carry out information sharing

 6-1     programs.

 6-2           (r) [(s)]  Subject to the limitations prescribed by

 6-3     Subsection (p) [(q)] of this section, the board may  award loans to

 6-4     projects and proposals to acquire equipment needed for distance

 6-5     learning and telemedicine projects.

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

 6-7     this section, the board shall give priority to projects and

 6-8     proposals that:

 6-9                 (1)  represent collaborative efforts involving multiple

6-10     schools, universities, or libraries;

6-11                 (2)  contribute matching funds from other sources;

6-12                 (3)  show promise of becoming self-sustaining;

6-13                 (4)  help users of information learn new ways to

6-14     acquire and use information through telecommunications;

6-15                 (5)  extend specific educational information and

6-16     knowledge services to groups not previously served, especially

6-17     those in rural and remote areas;

6-18                 (6)  result in more efficient or effective learning

6-19     than through conventional teaching;

6-20                 (7)  improve the effectiveness and efficiency of health

6-21     care delivery; or

6-22                 (8)  take advantage of distance learning opportunities

6-23     in rural and urban school districts with disproportionate numbers

6-24     of at-risk youths or with high dropout rates.

6-25           (t) [(u)]  The Texas Higher Education Coordinating Board, the

6-26     Texas [Central] Education Agency, and the Texas State Library  and

6-27     Archives Commission shall adopt policies and procedures in

 7-1     consultation with the board that are designed to aid the board in

 7-2     achieving the purposes of this section.

 7-3           (u) [(v)]  In distributing funds to public schools, the board

 7-4     shall take into account the relative property wealth per student of

 7-5     the recipient school districts and recognize the unique needs of

 7-6     rural communities.

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

 7-8     "telecommunications utilities account" means the "public schools

 7-9     account."  A reference in law to the "commercial mobile service

7-10     providers account" means the "qualifying entities account."

7-11           (b)  On the effective date of this Act:

7-12                 (1)  money in the telecommunications utilities account

7-13     is transferred to the public schools account; and

7-14                 (2)  money in the commercial mobile service providers

7-15     account is transferred to the qualifying entities account.

7-16           (c)  The validity of an act done, an obligation incurred, or

7-17     a right accrued before the transfer of money under Subsection (b)

7-18     of this section is not affected by the transfer.

7-19           SECTION 4.  (a)  This Act takes effect on the first day of

7-20     the first calendar quarter beginning on or after the earliest date

7-21     that it may take effect under Section 39, Article III, Texas

7-22     Constitution, and applies only to an assessment made on or after

7-23     that date.

7-24           (b)  The change in law made by this Act does not affect

7-25     liability for an assessment that accrued before the effective date

7-26     of this Act.  That liability continues in effect as if this Act had

7-27     not been enacted, and the former law is continued in effect for the

 8-1     collection of an assessment due and for civil and criminal

 8-2     enforcement of the liability for that assessment.

 8-3           SECTION 5.  The importance of this legislation and the

 8-4     crowded condition of the calendars in both houses create an

 8-5     emergency and an imperative public necessity that the

 8-6     constitutional rule requiring bills to be read on three several

 8-7     days in each house be suspended, and this rule is hereby suspended,

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

 8-9     terms, and it is so enacted.