88R20124 DIO-F
 
  By: Ashby, Hunter, Hernandez, Bonnen, H.B. No. 9
      Longoria, et al.
 
  Substitute the following for H.B. No. 9:
 
  By:  Hernandez C.S.H.B. No. 9
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to the development and funding of broadband and
  telecommunications services; providing for transfers of money for
  funding.
         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.
               (4)  "Office" means the broadband development office
  established under Section 490I.0102.
               (5)  "Universal service fund" means the fund
  established under Section 56.021, Utilities 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)  appropriations from the legislature for deposit to
  the credit of the fund;
               (2)  money transferred or deposited to the credit of
  the fund by the constitution or by general law;
               (3)  revenue that the legislature by general law
  dedicates for deposit to the credit of the fund;
               (4)  investment earnings and interest earned on money
  in the fund; and
               (5)  gifts, grants, and donations to the fund.
         (b)  The fund shall be administered by the comptroller who,
  after taking into account any transfer required by this subchapter,
  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 to the universal service fund
  for the purposes described by Section 56.021, Utilities Code;
               (3)  providing funding for 9-1-1 and next generation
  9-1-1 services under Chapter 771, Health and Safety Code;
               (4)  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;
               (5)  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;
               (6)  providing matching funds for federal money
  provided for the Broadband Equity, Access, and Deployment Program;
               (7)  supporting increased connectivity needs for
  qualifying schools under the federal Schools and Libraries Program
  ("E-rate program") as provided by 47 C.F.R. Part 54, Subpart F, or
  similar legislation providing federal funding for broadband and
  telecommunications initiatives;
               (8)  improving public safety telecommunications
  connectivity, including support for school safety; and
               (9)  administering and enforcing this subchapter.
         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 and in the name of 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)  The trust company has any power necessary to accomplish
  the purposes of managing and investing the assets of the fund. In
  managing the assets of the fund, through procedures and subject to
  restrictions the trust company considers appropriate, 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.  TRANSFERS TO UNIVERSAL SERVICE FUND. Not
  later than September 15 of each year, the comptroller shall
  transfer from the fund to the universal service fund an amount
  necessary to provide the services required under Section 56.021,
  Utilities Code, as determined by the comptroller in consultation
  with the Public Utility Commission of Texas.
         Sec. 403.606.  TRANSFERS TO NEXT GENERATION 9-1-1 SERVICE
  FUND.  Not later than September 15 of each year, the comptroller
  shall transfer from the fund to the next generation 9-1-1 service
  fund an amount equal to the difference between the fees collected
  under Section 771.0711(b), Health and Safety Code, during the
  preceding state fiscal year and the amount that would have been
  collected during that preceding state fiscal year if the amount of
  the monthly fee under Section 771.0711(b), Health and Safety Code,
  were 85 cents, as determined by the comptroller in consultation
  with the Commission on State Emergency Communications.
         Sec. 403.607.  TRANSFERS TO TEXAS EDUCATION AGENCY. Not
  later than September 15 of each year, the comptroller shall
  transfer to the commissioner of education an amount necessary to
  provide matching funds to schools under the federal Schools and
  Libraries Program ("E-rate program") as provided by 47 C.F.R. Part
  54, Subpart F, or similar legislation providing federal funding for
  broadband and telecommunications initiatives, as determined by the
  comptroller in consultation with the Texas Education Agency.
         Sec. 403.608.  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.  Section 771.0713, Health and Safety Code, is
  amended by adding Subsection (b-1) and amending Subsection (g) to
  read as follows:
         (b-1)  In addition to the money transferred under Subsection
  (b), the comptroller may transfer to the credit of the next
  generation 9-1-1 service fund an available amount from the
  broadband infrastructure fund established under Section 49-d-16,
  Article III, Texas Constitution.
         (g)  This section expires September 1, 2035 [2025].
         SECTION 4.  Section 56.022, Utilities Code, is repealed.
         SECTION 5.  (a)  The comptroller of public accounts shall
  make a one-time transfer in the amount of $1 billion from the
  broadband infrastructure fund established under Section 49-d-16,
  Article III, Texas Constitution, to the broadband development
  account established under Section 490I.0108, Government 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)  The comptroller of public accounts shall transfer the
  amounts described by Subsections (a) and (b) of this section not
  later than the 30th day after the effective date of this Act.
         SECTION 6.  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 assist
  in the financing of broadband and telecommunications services
  projects in the state takes effect.  If that amendment is not
  approved by the voters, this Act has no effect.