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