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.     * * * * *