HB 2964

relating to the provision of broadband service in certain rural
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1.  Section 490I.0103(c), Government Code, is
(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
(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
(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
(5)  take into consideration whether an applicant has
forfeited federal funding for defaulting on a project to deploy
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)
(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
(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:
(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
(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
(1)  the total amount of funds distributed under this
(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
(4)  any challenges or delays in implementing the
(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
(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
(2)  administering a [the] broadband development
program under Section 490I.0106 or 490I.01063;
(3)  creating or updating the state broadband plan
(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
(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.