2023S0003-2 12/09/22
By: Perry S.B. No. 377
A BILL TO BE ENTITLED
AN ACT
relating to the Texas Connectivity Fund and to the allocation and
the use of certain proceeds from the imposition of state sales and
use taxes on telecommunications services.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subtitle F, Title 4, Government Code, is amended
by adding Chapter 490J to read as follows:
CHAPTER 490J. TEXAS CONNECTIVITY FUND
Sec. 490J.0101. DEFINITIONS. In this chapter:
(1) "Broadband development account" means the account
established by Section 490I.0108.
(2) "Commission" means the Public Utility Commission
of Texas.
(3) "Comptroller" means the comptroller of public
accounts of the State of Texas.
(4) "Texas Connectivity Fund" or "fund" means the fund
established by Section 68, Article III, Texas Constitution.
(5) "Universal service fund" means the fund
established by Chapter 56, Utilities Code.
Sec. 490J.0102. DEDICATION OF REVENUE TO FUND. The revenue
of the state that is dedicated or appropriated to the fund pursuant
to Section 7-e, Article VIII, Texas Constitution, shall be
deposited to the fund in accordance with Section 7-e, Article VIII,
Texas Constitution.
Sec. 490J.0103. ALLOCATION OF FUND REVENUE. (a) At the end
of each fiscal year, the commission shall prepare a report
detailing the amount of funds necessary to fulfill the requirements
of the universal service fund. Upon receipt of that report, the
comptroller shall transfer from the Texas Connectivity Fund to the
commission the amount designated in the report.
(b) The remaining funds deposited in the fund for that
fiscal year shall be credited to the broadband development account.
SECTION 2. Section 490I.0108(b), Government Code, is
amended to read as follows:
(b) The account consists of:
(1) appropriations of money to the account by the
legislature, including funds appropriated from the Texas
Connectivity Fund;
(2) gifts, donations, and grants, including federal
grants; and
(3) interest earned on the investment of the money in
the account.
SECTION 3. Section 56.022, Utilities Code, is amended to
read as follows:
Sec. 56.022. REVENUE FROM TEXAS CONNECTIVITY FUND. [UNIFORM
CHARGE. (a)] The universal service fund is funded by allocations
made by the comptroller from the Texas Connectivity Fund [a
statewide uniform charge payable by each telecommunications
provider that has access to the customer base].
[(b) A telecommunications provider shall pay the charge in
accordance with procedures approved by the commission.
[(c) The uniform charge is on services and at rates the
commission determines. In establishing the charge and the services
to which the charge will apply, the commission may not:
[(1) grant an unreasonable preference or advantage to a
telecommunications provider;
[(2) assess the charge on pay telephone service; or
[(3) subject a telecommunications provider to
unreasonable prejudice or disadvantage.]
SECTION 4. Section 56.023(a), Utilities Code, is amended to
read as follows:
(a) The commission shall:
(1) in a manner that assures reasonable rates for
basic local telecommunications service, adopt eligibility criteria
and review procedures, including a method for administrative
review, the commission finds necessary to [fund the universal
service fund and] make distributions from the universal service
fund [that fund];
(2) determine which telecommunications providers meet
the eligibility criteria;
(3) determine the amount of and approve a procedure
for reimbursement to telecommunications providers of revenue lost
in providing tel-assistance service under Subchapter C;
(4) establish and collect fees from the universal
service fund necessary to recover the costs the department and the
commission incur in administering this chapter and Chapter 57;
(5) approve procedures for the [collection and]
disbursal of the revenue of the universal service fund; and
(6) audit voucher payments and other expenditures made
under the specialized telecommunications assistance program
established under Subchapter E.
SECTION 5. Section 151.801, Tax Code, is amended by adding
Subsection (g) to read as follows:
(g) The comptroller shall deposit each fiscal year 50
percent of the proceeds from the collection of the taxes imposed by
this chapter on telecommunications services to the credit of the
Texas Connectivity Fund.
SECTION 6. The Public Utility Commission of Texas shall
adopt rules consistent with this Act as soon as practicable after
the effective date of this Act.
SECTION 7. (a) This Act takes effect only if the
constitutional amendment proposed by the 88th Legislature, Regular
Session, 2023, requiring the automatic appropriation to the Texas
Connectivity Fund of part of the proceeds from existing state sales
and use taxes on telecommunications services is approved by the
voters. If that amendment is not approved by the voters, this Act
has no effect.
(b) If this Act takes effect as provided by Subsection (a)
of this section, this Act takes effect September 1, 2025.