Senate Bill 1405 | Effective: 7-1-2025 |
Senate Author: Nichols et al. | Senate Committee: Business & Commerce |
House Sponsor: Ashby | House Committee: State Affairs |
Senate Bill 1405 amends the Government Code to revise statutory provisions relating to the Texas Broadband Pole Replacement Program, broadband speed thresholds, the state broadband development map, and the broadband development program and amends the Tax Code to make certain changes relating to sales and use tax for Internet access service and franchise tax liability in connection with qualifying broadband grants. Specifically, the bill does the following, among other provisions:
- with respect to the Texas Broadband Pole Replacement Program, revises the definition of "qualifying broadband service" and "unserved area" and makes changes to the requirement for the comptroller of public accounts to maintain and publish certain information relating to the program;
- revises the minimum download and upload speeds that Internet service must be capable of providing to be considered "broadband service" for purposes of provisions relating to the broadband development office;
- with respect to the state broadband development map, revises the conditions a location must satisfy to be considered an unserved location for the map's purposes; revises the conditions under which the office is not required to create, update, or publish a map; and repeals certain statutory provisions relating to the map's development;
- makes provisions relating to grants, loans, or other financial incentives awarded under the broadband development program applicable also to contracts and further revises provisions governing the program's administration;
- removes Internet access service from the list of taxable services subject to the sales and use tax; and
- provides for the expansion of the definition of "qualifying broadband grant" for purposes of franchise tax provisions that exclude proceeds of such a grant from a taxable entity's total revenue and allow for certain related expenses to be included as a cost of goods or as compensation.
Senate Bill 1405 also eliminates the governor's broadband development council.