By: Ashby, et al. (Senate Sponsor - Huffman) H.B. No. 9
         (In the Senate - Received from the House May 1, 2023;
  May 2, 2023, read first time and referred to Committee on Finance;
  May 16, 2023, reported adversely, with favorable Committee
  Substitute by the following vote:  Yeas 16, Nays 1; May 16, 2023,
  sent to printer.)
Click here to see the committee vote
  relating to the development and funding of broadband and
  telecommunications services.
         SECTION 1.  Chapter 403, Government Code, is amended by
  adding Subchapter T to read as follows:
         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
               (3)  "Next generation 9-1-1 service fund" means the
  fund established under Section 771.0713, Health and Safety Code.
  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)  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
               (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.
         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
         (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
         (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.  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 takes effect.  If that amendment is not
  approved by the voters, this Act has no effect.
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