H.B. No. 9
 
 
 
 
AN ACT
  relating to the development and funding of broadband and
  telecommunications services.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Chapter 403, Government Code, is amended by
  adding Subchapter T to read as follows:
  SUBCHAPTER T. TEXAS BROADBAND INFRASTRUCTURE FUND
         Sec. 403.601.  DEFINITIONS. In this subchapter:
               (1)  "Broadband Equity, Access, and Deployment
  Program" means the federal Broadband Equity, Access, and Deployment
  Program established by the Infrastructure Investment and Jobs Act
  (Pub. L. No. 117-58).
               (2)  "Fund" means the broadband infrastructure fund
  established under Section 49-d-16, Article III, Texas
  Constitution.
               (3)  "Next generation 9-1-1 service fund" means the
  fund established under Section 771.0713, Health and Safety Code.
         Sec. 403.602.  LEGISLATIVE FINDINGS; PUBLIC PURPOSE.  The
  legislature finds that:
               (1)  the creation of the fund will meet an imperative
  public need and serve the economic, educational, and health care
  needs of this state; and
               (2)  the use of the fund is in furtherance of the public
  purpose of expanding and ensuring access to reliable, high-speed
  broadband and telecommunications connectivity.
         Sec. 403.603.  BROADBAND INFRASTRUCTURE FUND. (a)  The
  broadband infrastructure fund is a special fund in the state
  treasury outside the general revenue fund. The fund consists of:
               (1)  money transferred or deposited to the credit of
  the fund by the constitution, general law, or the General
  Appropriations Act;
               (2)  revenue that the legislature by general law
  dedicates for deposit to the credit of the fund;
               (3)  investment earnings and interest earned on money
  in the fund; and
               (4)  gifts, grants, and donations to the fund.
         (b)  The fund shall be administered by the comptroller who
  may use money from the fund for any purpose authorized by Subsection
  (c).
         (c)  The fund may be used only for:
               (1)  a purpose described by Chapter 490I;
               (2)  providing funding for 9-1-1 and next generation
  9-1-1 services under Chapter 771, Health and Safety Code;
               (3)  supporting the deployment of next generation 9-1-1
  service, including its costs of equipment, operations, and
  administration, as provided by Section 771.0713, Health and Safety
  Code;
               (4)  supporting the Texas Broadband Pole Replacement
  Program established under Section 403.503, as added by Chapter 659
  (H.B. 1505), Acts of the 87th Legislature, Regular Session, 2021;
               (5)  providing matching funds for federal money
  provided for the Broadband Equity, Access, and Deployment Program;
               (6)  expanding access to broadband service in
  economically distressed communities to support increased
  connectivity needs in those areas; and
               (7)  administering and enforcing this subchapter.
         (d)  For the purposes of Subsection (c)(5), the comptroller:
               (1)  shall consider an applicant's potential
  contribution toward matching the funds for federal money provided
  for the Broadband Equity, Access, and Deployment Program; and
               (2)  may only provide state matching funds if a state
  contribution is necessary for the economic feasibility of a
  proposed project.
         Sec. 403.604.  MANAGEMENT AND INVESTMENT OF FUND. (a)  In
  this section, "trust company" means the Texas Treasury Safekeeping
  Trust Company.
         (b)  The trust company shall hold and invest the fund, and
  any accounts established in the fund, for the comptroller, taking
  into account the purposes for which money in the fund may be used.
  The fund may be invested with the state treasury pool and may be
  pooled with other state assets for purposes of investment.
         (c)  The overall objective for the investment of the fund is
  to maintain sufficient liquidity to meet the needs of the fund while
  striving to preserve the purchasing power of the fund over a full
  economic cycle.
         (d)  In managing the assets of the fund, the trust company
  may acquire, exchange, sell, supervise, manage, or retain any kind
  of investment that a prudent investor, exercising reasonable care,
  skill, and caution, would acquire or retain in light of the
  purposes, terms, distribution requirements, and other
  circumstances of the fund then prevailing, taking into
  consideration the investment of all the assets of the fund rather
  than a single investment.
         (e)  The trust company shall recover the costs incurred in
  managing and investing the fund only from the fund.
         (f)  The trust company annually shall provide a written
  report to the comptroller with respect to the investments of the
  fund.
         (g)  The trust company shall adopt a written investment
  policy that is appropriate for the fund. The trust company shall
  present the investment policy to the investment advisory board
  established under Section 404.028. The investment advisory board
  shall submit to the trust company recommendations regarding the
  policy.
         (h)  The comptroller annually shall provide to the trust
  company a forecast of the cash flows into and out of the fund. The
  comptroller shall provide updates to the forecasts as appropriate
  to ensure that the trust company is able to achieve the fund's
  objective specified by Subsection (c).
         (i)  The trust company shall disburse money from the fund as
  directed by the comptroller.
         Sec. 403.605.  RULEMAKING. The comptroller may adopt rules
  as necessary to administer this subchapter.
         SECTION 2.  Section 403.502, Government Code, as added by
  Chapter 659 (H.B. 1505), Acts of the 87th Legislature, Regular
  Session, 2021, is amended by adding Subsection (b-1) to read as
  follows:
         (b-1)  In addition to the money transferred under Subsection
  (b), the comptroller may transfer to the credit of the pole
  replacement fund an available amount from the broadband
  infrastructure fund established under Section 49-d-16, Article
  III, Texas Constitution.
         SECTION 3.  (a)  The comptroller of public accounts shall
  make a one-time transfer in the amount of $155,200,000 from the
  broadband infrastructure fund established under Section 49-d-16,
  Article III, Texas Constitution, to the next generation 9-1-1
  service fund established under Section 771.0713, Health and Safety
  Code.
         (b)  The comptroller of public accounts shall make a one-time
  transfer in the amount of $75 million from the broadband
  infrastructure fund established under Section 49-d-16, Article
  III, Texas Constitution, to the broadband pole replacement fund
  established under Section 403.502, Government Code, as added by
  Chapter 659 (H.B. 1505), Acts of the 87th Legislature, Regular
  Session, 2021.
         (c)  Notwithstanding Section 5, Chapter 10 (S.B. 8), Acts of
  the 87th Legislature, 3rd Called Session, 2021, the comptroller of
  public accounts may not use funds appropriated under that section
  to support the Texas Broadband Pole Replacement Program established
  under Section 403.503, Government Code, as added by Chapter 659
  (H.B. 1505), Acts of the 87th Legislature, Regular Session, 2021,
  after the effective date of this Act.
         (d)  The comptroller of public accounts shall transfer the
  amounts described by Subsections (a) and (b) of this section not
  later than September 15, 2024.
         SECTION 4.  This Act takes effect January 1, 2024, if the
  constitutional amendment proposed by the 88th Legislature, Regular
  Session, 2023, creating the broadband infrastructure fund to expand
  high-speed broadband access and assist in the financing of
  connectivity projects in the state takes effect.  If that amendment
  is not approved by the voters, this Act has no effect.
 
 
  ______________________________ ______________________________
     President of the Senate Speaker of the House     
 
 
         I certify that H.B. No. 9 was passed by the House on April 27,
  2023, by the following vote:  Yeas 140, Nays 8, 1 present, not
  voting; that the House refused to concur in Senate amendments to
  H.B. No. 9 on May 23, 2023, and requested the appointment of a
  conference committee to consider the differences between the two
  houses; and that the House adopted the conference committee report
  on H.B. No. 9 on May 28, 2023, by the following vote:  Yeas 134,
  Nays 8, 2 present, not voting.
 
  ______________________________
  Chief Clerk of the House   
 
         I certify that H.B. No. 9 was passed by the Senate, with
  amendments, on May 18, 2023, by the following vote:  Yeas 30, Nays
  1; at the request of the House, the Senate appointed a conference
  committee to consider the differences between the two houses; and
  that the Senate adopted the conference committee report on H.B. No.
  9 on May 28, 2023, by the following vote:  Yeas 30, Nays 1.
 
  ______________________________
  Secretary of the Senate   
  APPROVED: __________________
                  Date       
   
           __________________
                Governor