Texas 2023 - 88th Regular

Texas Senate Bill SB377 Compare Versions

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1	1	2023S0003-2 12/09/22
2	2	By: Perry S.B. No. 377
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to the Texas Connectivity Fund and to the allocation and
8	8	the use of certain proceeds from the imposition of state sales and
9	9	use taxes on telecommunications services.
10	10	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
11	11	SECTION 1. Subtitle F, Title 4, Government Code, is amended
12	12	by adding Chapter 490J to read as follows:
13	13	CHAPTER 490J. TEXAS CONNECTIVITY FUND
14	14	Sec. 490J.0101. DEFINITIONS. In this chapter:
15	15	(1) "Broadband development account" means the account
16	16	established by Section 490I.0108.
17	17	(2) "Commission" means the Public Utility Commission
18	18	of Texas.
19	19	(3) "Comptroller" means the comptroller of public
20	20	accounts of the State of Texas.
21	21	(4) "Texas Connectivity Fund" or "fund" means the fund
22	22	established by Section 68, Article III, Texas Constitution.
23	23	(5) "Universal service fund" means the fund
24	24	established by Chapter 56, Utilities Code.
25	25	Sec. 490J.0102. DEDICATION OF REVENUE TO FUND. The revenue
26	26	of the state that is dedicated or appropriated to the fund pursuant
27	27	to Section 7-e, Article VIII, Texas Constitution, shall be
28	28	deposited to the fund in accordance with Section 7-e, Article VIII,
29	29	Texas Constitution.
30	30	Sec. 490J.0103. ALLOCATION OF FUND REVENUE. (a) At the end
31	31	of each fiscal year, the commission shall prepare a report
32	32	detailing the amount of funds necessary to fulfill the requirements
33	33	of the universal service fund. Upon receipt of that report, the
34	34	comptroller shall transfer from the Texas Connectivity Fund to the
35	35	commission the amount designated in the report.
36	36	(b) The remaining funds deposited in the fund for that
37	37	fiscal year shall be credited to the broadband development account.
38	38	SECTION 2. Section 490I.0108(b), Government Code, is
39	39	amended to read as follows:
40	40	(b) The account consists of:
41	41	(1) appropriations of money to the account by the
42	42	legislature, including funds appropriated from the Texas
43	43	Connectivity Fund;
44	44	(2) gifts, donations, and grants, including federal
45	45	grants; and
46	46	(3) interest earned on the investment of the money in
47	47	the account.
48	48	SECTION 3. Section 56.022, Utilities Code, is amended to
49	49	read as follows:
50	50	Sec. 56.022. REVENUE FROM TEXAS CONNECTIVITY FUND. [UNIFORM
51	51	CHARGE. (a)] The universal service fund is funded by allocations
52	52	made by the comptroller from the Texas Connectivity Fund [a
53	53	statewide uniform charge payable by each telecommunications
54	54	provider that has access to the customer base].
55	55	[(b) A telecommunications provider shall pay the charge in
56	56	accordance with procedures approved by the commission.
57	57	[(c) The uniform charge is on services and at rates the
58	58	commission determines. In establishing the charge and the services
59	59	to which the charge will apply, the commission may not:
60	60	[(1) grant an unreasonable preference or advantage to a
61	61	telecommunications provider;
62	62	[(2) assess the charge on pay telephone service; or
63	63	[(3) subject a telecommunications provider to
64	64	unreasonable prejudice or disadvantage.]
65	65	SECTION 4. Section 56.023(a), Utilities Code, is amended to
66	66	read as follows:
67	67	(a) The commission shall:
68	68	(1) in a manner that assures reasonable rates for
69	69	basic local telecommunications service, adopt eligibility criteria
70	70	and review procedures, including a method for administrative
71	71	review, the commission finds necessary to [fund the universal
72	72	service fund and] make distributions from the universal service
73	73	fund [that fund];
74	74	(2) determine which telecommunications providers meet
75	75	the eligibility criteria;
76	76	(3) determine the amount of and approve a procedure
77	77	for reimbursement to telecommunications providers of revenue lost
78	78	in providing tel-assistance service under Subchapter C;
79	79	(4) establish and collect fees from the universal
80	80	service fund necessary to recover the costs the department and the
81	81	commission incur in administering this chapter and Chapter 57;
82	82	(5) approve procedures for the [collection and]
83	83	disbursal of the revenue of the universal service fund; and
84	84	(6) audit voucher payments and other expenditures made
85	85	under the specialized telecommunications assistance program
86	86	established under Subchapter E.
87	87	SECTION 5. Section 151.801, Tax Code, is amended by adding
88	88	Subsection (g) to read as follows:
89	89	(g) The comptroller shall deposit each fiscal year 50
90	90	percent of the proceeds from the collection of the taxes imposed by
91	91	this chapter on telecommunications services to the credit of the
92	92	Texas Connectivity Fund.
93	93	SECTION 6. The Public Utility Commission of Texas shall
94	94	adopt rules consistent with this Act as soon as practicable after
95	95	the effective date of this Act.
96	96	SECTION 7. (a) This Act takes effect only if the
97	97	constitutional amendment proposed by the 88th Legislature, Regular
98	98	Session, 2023, requiring the automatic appropriation to the Texas
99	99	Connectivity Fund of part of the proceeds from existing state sales
100	100	and use taxes on telecommunications services is approved by the
101	101	voters. If that amendment is not approved by the voters, this Act
102	102	has no effect.
103	103	(b) If this Act takes effect as provided by Subsection (a)
104	104	of this section, this Act takes effect September 1, 2025.