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."