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."