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
COMMITTEE SUBSTITUTE FOR H.B. No. 9 By: Huffman
A BILL TO BE ENTITLED
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.
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. 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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