2023S0004-1 11/30/22
 
  By: Perry S.J.R. No. 27
 
 
 
A JOINT RESOLUTION
  proposing a constitutional amendment creating the Texas
  Connectivity Fund for the development of broadband and other
  telecommunications services in all areas of the state and
  authorizing the appropriation to that fund of a portion of revenue
  received from the existing state sales and use taxes on
  telecommunications services while not increasing the rate of the
  sales and use taxes.
         BE IT RESOLVED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Article III, Texas Constitution, is amended by
  adding Section 68 to read as follows:
         Sec. 68.  (a)  In this section:
               (1)  "Commission" means the Public Utility Commission
  of Texas or its successor.
               (2)  "Comptroller" means the comptroller of public
  accounts of the State of Texas.
               (3)  "Fund" means the Texas Connectivity Fund.
         (b)  The Texas Connectivity Fund is created in the state
  treasury and shall be administered by the comptroller as a
  revolving fund to provide a method of funding for the development of
  telecommunications services, including the construction,
  reconstruction, and expansion of telecommunications infrastructure
  and services, and the operation of existing telecommunications
  infrastructure and services as determined by the comptroller and
  the commission in accordance with standards and procedures
  established by law.
         (c)  Money in the fund may also be used in conjunction with
  other funds in accordance with the procedures, standards, and
  limitations established by federal law and the laws of this state.
         (d)  Money dedicated as provided by this section is
  appropriated when received by the state, shall be deposited to the
  credit of the fund, and may be used as provided by this section and
  any laws enacted under this section without further appropriation.
         (e)  Unless authorized to continue by a two-thirds vote of
  the members elected to each house, this section expires on
  September 1, 2035.
         SECTION 2.  Article VIII, Texas Constitution, is amended by
  adding Section 7-e to read as follows:
         Sec. 7-e.  (a)  Subject to Subsection (b) of this section,
  for each state fiscal year, 50 percent of the net revenue received
  from the collection of any state taxes imposed on the sale, use, or
  other consumption in this state of telecommunications services that
  were subject to taxation on January 1, 2023, under Chapter 151, Tax
  Code, is automatically appropriated to the Texas Connectivity Fund.
  The legislature by general law may provide limitations on the use of
  money appropriated under this subsection, with priority given to
  funds required by the universal service fund or its successor.
         (b)  The legislature by adoption of a resolution approved by
  a record vote of two-thirds of the members of each house may direct
  the comptroller to reduce the amount of money appropriated to the
  Texas Connectivity Fund. The comptroller may be directed to make
  that reduction only:
               (1)  in the state fiscal year in which the resolution is
  adopted, or in either of the following two state fiscal years; and
               (2)  by an amount that does not result in a reduction of
  more than 50 percent of the amount that would otherwise be
  appropriated to the Texas Connectivity Fund in the affected state
  fiscal year under Subsection (a) of this section.
         (c)  Money appropriated to the Texas Connectivity Fund under
  Subsection (a) of this section may not be considered available for
  certification by the comptroller under Section 49a(b), Article III,
  of this constitution.
         (d)  In this section, "telecommunications services" means
  the electronic or electrical transmission, conveyance, routing, or
  reception of sounds, signals, data, or information utilizing wires,
  cable, radio waves, microwaves, satellites, fiber optics, or any
  other method now in existence or that may be devised, including
  long-distance telephone service.  The term does not include:
               (1)  the storage of data or information for subsequent
  retrieval or the processing, or reception and processing, of data
  or information intended to change its form or content;
               (2)  the sale or use of a telephone prepaid calling
  card;
               (3)  Internet access service; or
               (4)  the portion of the sales price of a pay telephone
  coin sent-paid telephone call that is paid by coin.
         (e)  Unless authorized to continue by a two-thirds vote of
  the members elected to each house, this section expires on
  September 1, 2035.
         SECTION 3.  The following temporary provision is added to
  the Texas Constitution:
         TEMPORARY PROVISION. (a)  This temporary provision applies
  to the constitutional amendment proposed by the 88th Legislature,
  Regular Session, 2023, dedicating a portion of the revenue received
  from the existing state sales and use taxes that are imposed on
  telecommunications services to the Texas Connectivity Fund to
  provide funding for the development of broadband and other
  telecommunications services in all areas of the state while not
  increasing the rate of the state sales and use taxes.
         (b)  Section 68, Article III, of this constitution takes
  effect September 1, 2025.
         (c)  Section 7-e, Article VIII, of this constitution takes
  effect September 1, 2025, and applies only to state tax revenue
  collected on or after that date.
         (d)  This temporary provision expires January 1, 2026.
         SECTION 4.  This proposed constitutional amendment shall be
  submitted to the voters at an election to be held November 7, 2023.
  The ballot shall be printed to provide for voting for or against the
  proposition: "The constitutional amendment creating the Texas
  Connectivity Fund for the development of broadband and other
  telecommunications services in all areas of the state and
  authorizing the appropriation to that fund of a portion of revenue
  received from the existing state sales and use taxes on
  telecommunications services while not increasing the rate of the
  sales and use taxes."