89R8611 CS-F

By: Landgraf H.B. No. 2964

A BILL TO BE ENTITLED

AN ACT

relating to the provision of broadband service in certain rural counties.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Section 490I.0103(c), Government Code, is amended to read as follows:

(c) This chapter does not grant the comptroller authority to regulate broadband services or broadband service providers or, except as required of an applicant or recipient under Section 490I.0106 or 490I.01063, to require broadband service providers to submit information to the comptroller.

SECTION 2. Section 490I.0106(b), Government Code, is amended to read as follows:

(b) The office shall establish eligibility and award criteria for making awards under this section [chapter] for each applicable notice of funds availability. The comptroller by rule may prescribe the manner in which the office shall provide notice to applicants of the applicable criteria. In establishing eligibility and award criteria, the office shall:

(1) take into consideration grants and other financial incentives awarded by the federal government for the deployment of broadband service;

(2) prioritize the applications of applicants that will expand access to and adoption of broadband service in designated areas in which the highest percentage of broadband serviceable locations are unserved or underserved locations;

(3) prioritize the applications of applicants that will expand access to broadband service in public and private primary and secondary schools and institutions of higher education;

(4) give preference to an applicant that provided the information requested by the office under Section 490I.0105 or 490I.01061; and

(5) take into consideration whether an applicant has forfeited federal funding for defaulting on a project to deploy qualifying broadband service.

SECTION 3. Chapter 490I, Government Code, is amended by adding Section 490I.01063 to read as follows:

Sec. 490I.01063. FUNDING FOR CERTAIN RURAL COUNTIES. (a) In this section:

(1) "Eligible county" means a county with a county seat that has a population of 5,000 or more but not more than 25,000 that was not selected for the Bringing Online Opportunities to Texas II program by the broadband development office, and in which no broadband infrastructure development project has received state or federal funds.

(2) "Fiber-to-the-premises" means the delivery of broadband services directly to an individual residential or commercial premises using fiber-optic cables.

(b) The comptroller shall allocate an amount, not to exceed $750 million, in the broadband infrastructure fund to be used by the office to provide grants, low-interest loans, and other financial incentives for the planning, design, construction, and deployment of broadband networks in eligible counties to provide fiber-to-the-premises service to residential or commercial addresses that are not served by fiber-to-the-premises service according to the United States Federal Communications Commission's Broadband Serviceable Location Fabric Data.

(c) The office shall establish guidelines for:

(1) applying for funds;

(2) project approval; and

(3) monitoring broadband deployment.

(d) The office shall prioritize projects that demonstrate:

(1) a plan for providing reliable broadband service to underserved or unserved areas by deploying a fiber-optic network with gigabit passive optical network technology;

(2) potential for collaborating with a local government or private entity that can expedite the construction process; or

(3) a commitment from a county or private entity to provide financial or in-kind contributions for a project.

(e) The office shall report to the legislature not later than December 31 each year:

(1) the total amount of funds distributed under this section;

(2) a list of eligible counties and projects funded;

(3) the number of eligible addresses that have been provided fiber-to-the-premises service through funds awarded under this section; and

(4) any challenges or delays in implementing the provisions of this section.

(f) The office shall conduct a comprehensive review of the program established under this section not later than September 1, 2030, to evaluate the program's effectiveness at closing the broadband access gap in rural counties.

SECTION 4. Section 490I.0108(d), Government Code, is amended to read as follows:

(d) Money in the account may be appropriated only to the broadband development office for purposes of:

(1) creating or updating the map described by Section 490I.0105;

(2) administering a [the] broadband development program under Section 490I.0106 or 490I.01063;

(3) creating or updating the state broadband plan under Section 490I.0107; or

(4) engaging in outreach to communities regarding the expansion, adoption, affordability, and use of broadband service and the programs administered by the office and equipment.

SECTION 5. Section 490I.0110(i), Government Code, is amended to read as follows:

(i) A person who is professionally affiliated with a person serving as a member of the board of advisors is not eligible for funding from a [the] broadband development program under Section 490I.0106 or 490I.01063 if the member is involved in decisions regarding the award of grants, loans, or other financial incentives under those sections [that section].

SECTION 6. The broadband development office shall establish the guidelines required by Section 490I.01063, Government Code, as added by this Act, not later than April 1, 2026.

SECTION 7. This Act takes effect September 1, 2025.