1-1           By:  Sibley                                      S.B. No. 249

 1-2           (In the Senate - Filed January 20, 1997; January 22, 1997,

 1-3     read first time and referred to Committee on Economic Development;

 1-4     February 3, 1997, reported favorably, as amended, by the following

 1-5     vote:  Yeas 10, Nays 0; February 3, 1997, sent to printer.)

 1-6     COMMITTEE AMENDMENT NO. 1                               By:  Sibley

 1-7           Amend S.B. No. 249 in Section 4(a) of the bill (page 3, line

 1-8     59), by striking "assessment made on or after" and substituting

 1-9     "assessment that accrues on or after".

1-10                            A BILL TO BE ENTITLED

1-11                                   AN ACT

1-12     relating to the telecommunications infrastructure fund.

1-13           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

1-14           SECTION 1.  Subsection (a), Section 3.606, Public Utility

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

1-16     Statutes), is amended by amending Subdivision (5) and adding

1-17     Subdivision (10) to read as follows:

1-18                 (5)  "School district" includes an independent school

1-19     district, a common school district, and a rural high school

1-20     district [has the meaning assigned by Section 19.001, Education

1-21     Code].

1-22                 (10)  "Taxable telecommunications receipts" means

1-23     taxable telecommunications receipts reported under Chapter 151, Tax

1-24     Code.

1-25           SECTION 2.  Subsections (j) through (v), Section 3.606,

1-26     Public Utility Regulatory Act of 1995 (Article 1446c-0, Vernon's

1-27     Texas Civil Statutes), are amended to read as follows:

1-28           (j)  An annual assessment is imposed on each

1-29     telecommunications utility and each commercial mobile service

1-30     provider doing business in this state.  The  assessment is imposed

1-31     at the rate of 1.25 percent of the taxable telecommunications

1-32     receipts of each telecommunications utility and  commercial mobile

1-33     service provider subject to the assessment, subject to Subsection

1-34     (k) of this section.

1-35           (k)  The total amount deposited to the credit of the fund,

1-36     excluding interest and loan repayments, may not exceed $1.5

1-37     billion.  Not later than August 31 of each year, the comptroller

1-38     shall determine the total amount, excluding interest and loan

1-39     repayments, that has been deposited to the credit of the fund

1-40     during that fiscal year and the preceding fiscal years.  If the

1-41     comptroller determines that a total of $1.2 billion or more,

1-42     excluding interest and loan repayments, has been deposited to the

1-43     credit of the fund, the comptroller shall impose  the assessment

1-44     during the next fiscal year at a rate that the comptroller

1-45     estimates is sufficient to produce the amount necessary to result

1-46     in the deposit in the fund of a total of not more than $1.5

1-47     billion, excluding interest and loan repayments.  The comptroller

1-48     may not collect the assessment during a fiscal year if the

1-49     comptroller determines after the yearly review that the total

1-50     amount deposited to the credit of the fund during that fiscal year

1-51     and the preceding fiscal years is $1.49 billion or more, excluding

1-52     interest and loan repayments, and it is not possible to impose the

1-53     assessment during the next fiscal year at a practical rate without

1-54     collecting more than a total of $1.5 billion, excluding interest

1-55     and loan repayments.

1-56           (l)  [The fund is composed of the telecommunications

1-57     utilities account and the commercial mobile service providers

1-58     account.  The telecommunications utilities account is financed by

1-59     an annual assessment on all telecommunications utilities doing

1-60     business in this state.  Each telecommunications utility shall pay

1-61     the annual assessment in accordance with the ratio that the annual

1-62     taxable telecommunications receipts reported by that

1-63     telecommunications utility under Chapter 151, Tax Code, bears to

 2-1     the total annual taxable telecommunications receipts reported by

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

 2-3           [(k)  The commercial mobile service providers account is

 2-4     financed by an annual assessment on all commercial mobile service

 2-5     providers doing business in this state. Each commercial mobile

 2-6     service provider shall pay the annual assessment in accordance with

 2-7     the ratio that the annual taxable telecommunications receipts

 2-8     reported by that provider under Chapter 151, Tax Code, bears to the

 2-9     total annual taxable telecommunications receipts reported by all

2-10     commercial mobile service providers under Chapter 151, Tax Code.]

2-11           [(l)  For the fiscal year beginning September 1, 1995, and

2-12     for the nine fiscal years immediately following that year, for a

2-13     total of 10 years, the comptroller shall assess and collect a total

2-14     annual amount of $75 million from telecommunications utilities and

2-15     a total annual amount of $75 million from commercial mobile service

2-16     providers.  The amounts assessed against both the

2-17     telecommunications utilities and the commercial mobile service

2-18     providers shall be assessed and collected in each year without

2-19     respect to whether all of the funds previously collected and

2-20     deposited in either or both accounts have been disbursed or spent

2-21     due to lack of demand or otherwise.]

2-22           [(m)]  The comptroller may require telecommunications

2-23     utilities and commercial mobile service providers to provide any

2-24     reports and information as are needed to fulfill the duties of the

2-25     comptroller provided by this section.  Any information provided to

2-26     the comptroller by a telecommunications utility or commercial

2-27     mobile service provider under this section is confidential and

2-28     exempt from disclosure under Chapter 552, Government Code.

2-29           (m)  The comptroller shall deposit 50 percent of the

2-30     [(n)  All] amounts collected by the comptroller [from

2-31     telecommunications utilities] under Subsection (j) [(l)] of this

2-32     section [shall be deposited] to the credit of the public schools

2-33     [telecommunications utilities] account in the telecommunications

2-34     infrastructure fund in the state treasury.  The comptroller shall

2-35     deposit the remainder of the [All] amounts collected by the

2-36     comptroller under Subsection (j) of this section [from commercial

2-37     mobile service providers under Subsection (l) of this section shall

2-38     be deposited] to the credit of the qualifying entities [commercial

2-39     mobile service providers] account in the telecommunications

2-40     infrastructure fund in the state treasury.  Interest earned on

2-41     money in an account shall be deposited to the credit of that

2-42     account. Money in the fund may be appropriated only for a use

2-43     consistent with the purposes of this section.  [Sections 403.094

2-44     and 403.095, Government Code, do not apply to the fund or either

2-45     account.]

2-46           (n) [(o)]  From funds appropriated to the board, the

2-47     comptroller shall issue warrants as requested by the board in

2-48     accordance with the purposes of this section, including warrants to

2-49     grantees of the board in amounts certified by the board to the

2-50     comptroller.

2-51           (o) [(p)]  In addition to any appropriated funds, the board

2-52     may accept gifts, grants, and donations and use them for the

2-53     purposes of this section.

2-54           (p) [(q)]  The board shall use money in the public schools

2-55     [telecommunications utilities] account to award grants and loans in

2-56     accordance with this section to fund equipment [purchases],

2-57     including computers, printers, computer labs, and video equipment,

2-58     for public schools and for intracampus and intercampus wiring to

2-59     enable those public schools to use the equipment.  The board shall

2-60     use money in the qualifying entities [commercial mobile service

2-61     providers] account for any purpose authorized by this section,

2-62     including equipment [purchases], wiring, material, program

2-63     development, training, installation costs, or any statewide

2-64     telecommunications network.

2-65           (q) [(r)]  Subject to the limitations prescribed by

2-66     Subsection (p) [(q)] of this section, the board may award grants to

2-67     projects and proposals that:

2-68                 (1)  provide equipment and infrastructure needed for

2-69     distance learning, information sharing programs of libraries, and

 3-1     telemedicine services;

 3-2                 (2)  develop and implement the initial or prototypical

 3-3     delivery of courses and other distance learning material;

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

 3-5     technicians in the use of distance learning or information sharing

 3-6     materials and equipment;

 3-7                 (4)  develop curricula and instructional material

 3-8     especially suited for delivery by telecommunications;

 3-9                 (5)  provide electronic information; or

3-10                 (6)  establish or carry out information sharing

3-11     programs.

3-12           (r) [(s)]  Subject to the limitations prescribed by

3-13     Subsection (p) [(q)] of this section, the board may award loans to

3-14     projects and proposals to acquire equipment needed for distance

3-15     learning and telemedicine projects.

3-16           (s) [(t)]  In awarding grants and loans in accordance with

3-17     this section, the board shall give priority to projects and

3-18     proposals that:

3-19                 (1)  represent collaborative efforts involving multiple

3-20     schools, universities, or libraries;

3-21                 (2)  contribute matching funds from other sources;

3-22                 (3)  show promise of becoming self-sustaining;

3-23                 (4)  help users of information learn new ways to

3-24     acquire and use information through telecommunications;

3-25                 (5)  extend specific educational information and

3-26     knowledge services to groups not previously served, especially

3-27     those in rural and remote areas;

3-28                 (6)  result in more efficient or effective learning

3-29     than through conventional teaching;

3-30                 (7)  improve the effectiveness and efficiency of health

3-31     care delivery; or

3-32                 (8)  take advantage of distance learning opportunities

3-33     in rural and urban school districts with disproportionate numbers

3-34     of at-risk youths or with high dropout rates.

3-35           (t) [(u)]  The Texas Higher Education Coordinating Board, the

3-36     Texas [Central] Education Agency, and the Texas State Library and

3-37     Archives Commission shall adopt policies and procedures in

3-38     consultation with the board that are designed to aid the board in

3-39     achieving the purposes of this section.

3-40           (u) [(v)]  In distributing funds to public schools, the board

3-41     shall take into account the relative property wealth per student of

3-42     the recipient school districts and recognize the unique needs of

3-43     rural communities.

3-44           SECTION 3.  (a)  A reference in law to the

3-45     "telecommunications utilities account" means the "public schools

3-46     account."  A reference in law to the "commercial mobile service

3-47     providers account" means the "qualifying entities account."

3-48           (b)  On the effective date of this Act:

3-49                 (1)  money in the telecommunications utilities account

3-50     is transferred to the public schools account; and

3-51                 (2)  money in the commercial mobile service providers

3-52     account is transferred to the qualifying entities account.

3-53           (c)  The validity of an act done, an obligation incurred, or

3-54     a right accrued before the transfer of money under Subsection (b)

3-55     of this section is not affected by the transfer.

3-56           SECTION 4.  (a)  This Act takes effect on the first day of

3-57     the first calendar quarter beginning on or after the earliest date

3-58     that it may take effect under Section 39, Article III, Texas

3-59     Constitution, and applies only to an assessment made on or after

3-60     that date.

3-61           (b)  The change in law made by this Act does not affect

3-62     liability for an assessment that accrued before the effective date

3-63     of this Act.  That liability continues in effect as if this Act had

3-64     not been enacted, and the former law is continued in effect for the

3-65     collection of an assessment due and for civil and criminal

3-66     enforcement of the liability for that assessment.

3-67           SECTION 5.  The importance of this legislation and the

3-68     crowded condition of the calendars in both houses create an

3-69     emergency and an imperative public necessity that the

 4-1     constitutional rule requiring bills to be read on three several

 4-2     days in each house be suspended, and this rule is hereby suspended,

 4-3     and that this Act take effect and be in force according to its

 4-4     terms, and it is so enacted.

 4-5                                  * * * * *