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

89(R) HB 2964 - Introduced version - Bill Text

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.