GOVERNMENT CODE CHAPTER 490I. BROADBAND DEVELOPMENT OFFICE

GOVERNMENT CODE

TITLE 4. EXECUTIVE BRANCH

SUBTITLE F. COMMERCE AND INDUSTRIAL DEVELOPMENT

CHAPTER 490I. BROADBAND DEVELOPMENT OFFICE

Sec. 490I.0101. THRESHOLD SPEED FOR BROADBAND SERVICE. (a) For purposes of this chapter, subject to Subsection (b), "broadband service" means Internet service with the capability of providing a:

(1) speed of not less than 100 megabits per second for a download;

(2) speed of not less than 20 megabits per second for an upload; and

(3) network round-trip latency of less than or equal to 100 milliseconds based on the 95th percentile of speed measurements.

(b) If the Federal Communications Commission adopts standards for advanced telecommunications capability under 47 U.S.C. Section 1302 that are different than those specified by Subsection (a), the comptroller by rule may require Internet service to be capable of matching the federal standards in order to qualify under this chapter as "broadband service."

Added by Acts 2021, 87th Leg., R.S., Ch. 625 (H.B. 5), Sec. 5, eff. June 15, 2021.

Amended by:

Acts 2023, 88th Leg., R.S., Ch. 352 (S.B. 1238), Sec. 1, eff. June 2, 2023.

Acts 2023, 88th Leg., R.S., Ch. 352 (S.B. 1238), Sec. 7(1), eff. June 2, 2023.

Acts 2025, 89th Leg., R.S., Ch. 1141 (S.B. 1405), Sec. 3, eff. July 1, 2025.

Sec. 490I.0102. OFFICE. (a) The broadband development office is an office within the comptroller's office.

(b) The comptroller may employ additional employees necessary for the discharge of the duties of the broadband development office.

(1) is under the direction and control of the comptroller;

(2) shall promote the policies enumerated in this chapter; and

(3) may perform any action authorized by state or federal law.

Added by Acts 2021, 87th Leg., R.S., Ch. 625 (H.B. 5), Sec. 5, eff. June 15, 2021.

Sec. 490I.0103. POWERS AND DUTIES. (a) The broadband development office shall:

(1) serve as a resource for information regarding broadband service and digital connectivity in this state;

(2) engage in outreach to communities regarding the expansion, adoption, affordability, and use of broadband service and the programs administered by the office; and

(3) serve as an information clearinghouse in relation to:

(A) federal programs providing assistance to local entities with respect to broadband service; and

(B) addressing barriers to digital connectivity.

(b) The office has the powers necessary to carry out the duties of the office under this chapter, including the power to enter into contracts and other necessary instruments.

(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, to require broadband service providers to submit information to the comptroller.

(d) For the purpose of carrying out a duty or power of the office under this chapter, the office may:

(1) advertise in any available media; and

(2) promote the office's programs and functions.

Added by Acts 2021, 87th Leg., R.S., Ch. 625 (H.B. 5), Sec. 5, eff. June 15, 2021.

Sec. 490I.0104. PARTICIPATION IN PROCEEDINGS OF FEDERAL COMMUNICATIONS COMMISSION. (a) The broadband development office may monitor, participate in, and provide input in proceedings of the Federal Communications Commission related to the geographic availability and deployment of broadband service in this state to ensure that:

(1) the information available to the commission reflects the current status of geographic availability and deployment of broadband service in this state; and

(2) this state is best positioned to benefit from broadband service deployment programs administered by federal agencies.

(b) The office may participate in a process established by the Federal Communications Commission allowing governmental entities to challenge the accuracy of the commission's information regarding the geographic availability and deployment of broadband service.

(c) The office shall establish procedures and a data collection process in accordance with rules established by the Federal Communications Commission that will enable the office to participate in the process described by Subsection (b).

Added by Acts 2021, 87th Leg., R.S., Ch. 625 (H.B. 5), Sec. 5, eff. June 15, 2021.

Sec. 490I.0105. BROADBAND DEVELOPMENT MAP. (a) The broadband development office shall create, update annually, and publish on the comptroller's Internet website a map classifying each broadband serviceable location in this state as:

(1) an unserved location if the location:

(A) does not have access to reliable broadband service capable of providing:

(i) speeds matching standards adopted by the Federal Communications Commission if required by the comptroller under Section 490I.0101(b); or

(ii) if the comptroller has not exercised the comptroller's authority under Section 490I.0101(b), speeds described by Section 490I.0101(a); or

(B) is a public school or community anchor institution and does not have access to reliable gigabit-level broadband service;

(2) an underserved location if the location is not an unserved location but does not have access to reliable broadband service with the capability of providing:

(A) a speed of not less than 100 megabits per second for a download;

(B) a speed of not less than 20 megabits per second for an upload; and

(C) a network round-trip latency of less than or equal to 100 milliseconds based on the 95th percentile of speed measurements; or

(3) a served location if the location is neither an unserved nor an underserved location.

(b) The comptroller by rule may establish new threshold speeds for a location to qualify as an underserved location if the comptroller has required Internet service to be capable of matching federal standards to qualify as broadband service under Section 490I.0101(b).

(c) The office may evaluate the usefulness of the standards for unserved and underserved locations outlined in Subsection (a) and, if appropriate, make a recommendation to the legislature to revise the standards.

(d) The map required by Subsection (a) must organize broadband serviceable locations into designated areas and display for each area:

(1) the number of broadband service providers that serve the area;

(2) an indication of whether the area has access to Internet service that is not broadband service, regardless of the technology used to provide the service;

(3) each public school campus with an indication of whether the public school campus has access to broadband service; and

(4) the number and percentage of unserved, underserved, and served locations within the area.

(e) The office must create, update, and publish the map in a manner consistent with the most current mapping methodology adopted by the Federal Communications Commission.

(f) The office shall use the best available data, including information available from the Federal Communications Commission, to create or update the map.

(g) Repealed by Acts 2025, 89th Leg., R.S., Ch. 1141 (S.B. 1405), Sec. 10(2), eff. July 1, 2025.

(h) Repealed by Acts 2025, 89th Leg., R.S., Ch. 1141 (S.B. 1405), Sec. 10(2), eff. July 1, 2025.

(i) Repealed by Acts 2025, 89th Leg., R.S., Ch. 1141 (S.B. 1405), Sec. 10(2), eff. July 1, 2025.

(j) Repealed by Acts 2025, 89th Leg., R.S., Ch. 1141 (S.B. 1405), Sec. 10(2), eff. July 1, 2025.

(k) Repealed by Acts 2025, 89th Leg., R.S., Ch. 1141 (S.B. 1405), Sec. 10(2), eff. July 1, 2025.

(l) Repealed by Acts 2025, 89th Leg., R.S., Ch. 1141 (S.B. 1405), Sec. 10(2), eff. July 1, 2025.

(m) Repealed by Acts 2023, 88th Leg., R.S., Ch. 352 (S.B. 1238), Sec. 7(2), eff. June 2, 2023.

(n) Repealed by Acts 2025, 89th Leg., R.S., Ch. 1141 (S.B. 1405), Sec. 10(2), eff. July 1, 2025.

(o) Repealed by Acts 2025, 89th Leg., R.S., Ch. 1141 (S.B. 1405), Sec. 10(2), eff. July 1, 2025.

(p) Repealed by Acts 2025, 89th Leg., R.S., Ch. 1141 (S.B. 1405), Sec. 10(2), eff. July 1, 2025.

(q) The office is not required to create, update, or publish a map under this section if the office adopts a map produced by the Federal Communications Commission that enables the office to identify unserved, underserved, and served locations as described by Subsection (a).

Added by Acts 2021, 87th Leg., R.S., Ch. 625 (H.B. 5), Sec. 5, eff. June 15, 2021.

Amended by:

Acts 2023, 88th Leg., R.S., Ch. 352 (S.B. 1238), Sec. 2, eff. June 2, 2023.

Acts 2023, 88th Leg., R.S., Ch. 352 (S.B. 1238), Sec. 7(2), eff. June 2, 2023.

Acts 2025, 89th Leg., R.S., Ch. 1141 (S.B. 1405), Sec. 4, eff. July 1, 2025.

Acts 2025, 89th Leg., R.S., Ch. 1141 (S.B. 1405), Sec. 10(2), eff. July 1, 2025.

Sec. 490I.01051. MAP OF LOCATIONS RECEIVING BROADBAND AND CERTAIN TELECOMMUNICATIONS SERVICES; REPORT. (a) The Public Utility Commission of Texas shall create, update annually, and publish on the commission's Internet website a map that shows locations in this state that are:

(1) receiving reliable broadband service at speeds of not less than 100 megabits per second for a download and not less than 20 megabits per second for an upload;

(2) served by an eligible telecommunications provider under Section 56.023, Utilities Code, that receives support for that purpose under a plan of the state universal service fund established under Section 56.021, Utilities Code; and

(3) described by both Subdivisions (1) and (2).

(b) The comptroller shall assist the Public Utility Commission of Texas in creating and updating the map described by Subsection (a).

(c) Not later than December 1 of each year, the Public Utility Commission of Texas shall submit a report to the governor, the lieutenant governor, the speaker of the house of representatives, and the legislature that shows the locations described by Subsection (a)(3).

Added by Acts 2023, 88th Leg., R.S., Ch. 964 (S.B. 2119), Sec. 1, eff. September 1, 2023.

Sec. 490I.0106. BROADBAND DEVELOPMENT PROGRAM. (a) The broadband development office shall establish a program to award contracts, grants, low-interest loans, and other financial incentives for the purpose of expanding access to and adoption of broadband service.

(a-1) The office may award contracts, grants, low-interest loans, and other financial incentives for eligible broadband infrastructure projects designed to provide qualifying broadband service to unserved and underserved locations. For the purposes of this subsection, an eligible broadband infrastructure project includes a project in which not less than 80 percent of the broadband serviceable locations to be served by the project are unserved and underserved locations.

(a-2) The office may award contracts, grants, low-interest loans, and other financial incentives for middle-mile broadband infrastructure projects.

(a-3) The office may award contracts, grants, low-interest loans, and other financial incentives for projects not involving the deployment of broadband infrastructure that expand the accessibility, affordability, or adoption of broadband service, including education, training, community outreach, remote learning or telehealth facilities, equipment purchases, or any other use permitted by the applicable funding source.

(b) In making an award under this section, the office shall, to the extent applicable:

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

(2) prioritize applications 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 applications 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.01061; and

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

(c) Notwithstanding Subsection (b)(2), the office may establish criteria that take into account a cost benefit analysis for awarding money to the areas described by that subdivision.

(d) The office may not:

(1) except as provided by Section 490I.01062, favor a particular broadband technology in awarding contracts, grants, loans, or other financial incentives;

(2) award a contract, grant, loan, or other financial incentive for the deployment of last-mile broadband service to a noncommercial provider of broadband service for a broadband serviceable location if an eligible commercial provider of broadband service has submitted an application for the same location;

(3) take into consideration distributions from the state universal service fund established under Section 56.021, Utilities Code, when deciding to award contracts, grants, loans, or other financial incentives; or

(4) except as provided by Section 490I.01061, award a contract, grant, loan, or other financial incentive for deployment of last-mile broadband service for a location that is subject to an existing federal commitment to deploy qualifying broadband service on the date the application is submitted or during the application process.

(e) The office shall:

(1) post on the comptroller's Internet website information about the application process and the receipt of awards and shall update that information as necessary; and

(2) post on the comptroller's Internet website for at least 30 days information from each accepted application, including the applicant's name, the area targeted for expanded broadband service access or adoption by the application, and any other information the office considers relevant or necessary.

(f) During the 30-day posting period described by Subsection (e) for an application, the office shall accept from any interested party, other than a broadband service provider that does not report information requested by the office under Section 490I.01061, a written protest of an application submitted for a contract, grant, loan, or other financial incentive under Subsection (a-1) relating to whether the broadband serviceable locations contained in the application are eligible to receive funding.

(g) Notwithstanding any deadline for submitting an application, if the office upholds a protest submitted under Subsection (f) on the grounds that one or more of the broadband serviceable locations are not eligible to receive funding under this chapter, the applicant may resubmit the application without the challenged locations not later than 30 days after the date that the office upheld the protest.

(h) The office shall establish and publish criteria for award recipients. The criteria must include requirements that:

(1) contracts, grants, loans, and other financial incentives awarded through the program for the deployment of broadband infrastructure may be used only for capital expenses, purchase or lease of property, and other expenses, including backhaul and transport, that will facilitate the provision or adoption of broadband service; and

(2) an award recipient must make a reasonable effort to restore private property affected by a broadband infrastructure project funded under Subsection (a-1) to the condition the property was in before the beginning of the project.

(h-1) The office may revoke or reduce an award made under this section if the office determines the award recipient made a material misrepresentation related to compliance with a requirement established under Subsection (h).

(i) An award granted under this section does not affect the eligibility of a telecommunications provider to receive support from the state universal service fund under Section 56.021, Utilities Code.

(j) The office shall publish on the comptroller's Internet website information regarding each grant awarded under Subsection (a-1), including the grant recipient's name, the area targeted for expanded broadband service access, the amount of the grant award, the status of the grant award, including incremental completion status, and any other information the office considers relevant.

Added by Acts 2021, 87th Leg., R.S., Ch. 625 (H.B. 5), Sec. 5, eff. June 15, 2021.

Amended by:

Acts 2023, 88th Leg., R.S., Ch. 352 (S.B. 1238), Sec. 3, eff. June 2, 2023.

Acts 2025, 89th Leg., R.S., Ch. 1141 (S.B. 1405), Sec. 5, eff. July 1, 2025.

Sec. 490I.01061. EXISTING FEDERAL FUNDING; REPORTING REQUIREMENTS. (a) The broadband development office may award a grant, loan, or other financial incentive for deployment of last-mile broadband service for a location that is subject to a federal commitment to deploy qualifying broadband service if:

(1) federal funding is forfeited or the recipient of the federal funding is disqualified from receiving the funding; and

(2) the location otherwise may receive funding under the program.

(b) An applicant for an award under this chapter that has been awarded federal funding directly and has entered into an enforceable commitment to deploy broadband services in a location shall provide to the office information the office may require regarding:

(1) the existing enforceable commitment; and

(2) the proposed deployment of broadband.

Added by Acts 2023, 88th Leg., R.S., Ch. 352 (S.B. 1238), Sec. 4, eff. June 2, 2023.

Sec. 490I.01062. FIBER OPTIC PREFERENCE. (a) The broadband development office shall prioritize broadband infrastructure projects that connect each end-user location using end-to-end fiber optic facilities that meet speed, latency, reliability, consistency, scalability, and related criteria as the office shall determine for each applicable notice of funds availability.

(b) The office may consider an application for a broadband infrastructure project that does not employ end-to-end fiber optic facilities if the use of an alternative technology:

(1) is proposed for a high cost area;

(2) may be deployed at a lower cost; or

(3) meets the criteria established by the office under Subsection (a).

Added by Acts 2023, 88th Leg., R.S., Ch. 352 (S.B. 1238), Sec. 4, eff. June 2, 2023.

Sec. 490I.0107. STATE BROADBAND PLAN. (a) The broadband development office shall prepare, update, and publish on the comptroller's Internet website a state broadband plan that establishes long-term goals for greater access to and adoption, affordability, and use of broadband service in this state.

(b) In developing the state broadband plan, the office shall:

(1) to the extent possible, collaborate with state agencies, political subdivisions, broadband industry stakeholders and representatives, and community organizations that focus on broadband services and technology access;

(2) favor policies that are technology-neutral and protect all members of the public;

(3) explore state and regional approaches to broadband development; and

(4) examine broadband service needs related to:

(A) public safety, including the needs of state agencies involved in the administration of criminal justice, as that term is defined by Article 66.001, Code of Criminal Procedure;

(B) public education and state and local education agencies, including any agency involved in the electronic administration of an assessment instrument required under Section 39.023, Education Code; and

(C) public health, including the needs of state agencies involved in the administration of public health initiatives such as the Health and Human Services Commission and the Department of State Health Services.

Added by Acts 2021, 87th Leg., R.S., Ch. 625 (H.B. 5), Sec. 5, eff. June 15, 2021.

Amended by:

Acts 2023, 88th Leg., R.S., Ch. 352 (S.B. 1238), Sec. 5, eff. June 2, 2023.

Sec. 490I.0108. BROADBAND DEVELOPMENT ACCOUNT. (a) The broadband development account is an account in the general revenue fund.

(b) The account consists of:

(1) appropriations of money to the account by the legislature;

(2) gifts, donations, and grants, including federal grants; and

(3) interest earned on the investment of the money in the account.

(c) The comptroller shall deposit to the credit of the account federal money received by the state for the purpose of broadband development, to the extent permitted by federal law.

(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 the broadband development program under Section 490I.0106;

(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.

(e) The account is exempt from the application of Sections 403.095, 403.0956, and 404.071.

Added by Acts 2021, 87th Leg., R.S., Ch. 625 (H.B. 5), Sec. 5, eff. June 15, 2021.

Sec. 490I.0109. RULEMAKING. The comptroller may adopt rules as necessary to implement this chapter.

Added by Acts 2021, 87th Leg., R.S., Ch. 625 (H.B. 5), Sec. 5, eff. June 15, 2021.