SB1405 - Relating to increasing access to and reducing taxation of Internet services.

      S.B. No. 1405         AN ACT   relating to increasing access to and reducing taxation of Internet   services.          BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:          SECTION 1.  Sections 403.553(a)(3) and (4), Government Code,   are amended to read as follows:                (3)  "Qualifying broadband service" means broadband   service as defined by Section 490I.0101 [ retail wireline or   wireless broadband service capable of providing:                      [ (A) a download speed of 25 megabits per second or   faster; and                      [ (B) an upload speed of 3 megabits per second or   faster ].                (4)  "Unserved area" means a location that lacks access   to [ a ] retail fixed, terrestrial, wireline, or wireless qualifying   broadband service [ Internet service capable of providing:                      [ (A) a download speed of 25 megabits per second or   faster; and                      [ (B) an upload speed of 3 megabits per second or   faster ].          SECTION 2.  Section 403.553(o), Government Code, is amended   to read as follows:          (o)  Not later than November 1 of each year [ the 60th day   after the date the pole replacement fund receives money for the pole   replacement program ], the comptroller shall [ maintain and ] publish   on the comptroller's Internet website:                (1)  statistics on the number of applications received,   processed, and rejected by the program in the preceding state   fiscal year ;                (2)  statistics on the size, number, and status of   reimbursements awarded by the program in the preceding state fiscal   year , including the retail broadband service providers and pole   owners receiving reimbursements; and                (3)  the estimated amount of money available for grants   from the program as of the last day of the preceding state fiscal   year  [ remaining in the pole replacement fund ].          SECTION 3.  Section 490I.0101(a), Government Code, is   amended to read as follows:          (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 [ 25 ] megabits per second   for a download;                (2)  speed of not less than 20 [ three ] 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.          SECTION 4.  Sections 490I.0105(a), (c), (f), and (q),   Government Code, are amended to read as follows:          (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)   [ the ] 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.          (c)   The [ After creation of the initial map described in   Subsection (a), 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.          (f)   The [ Except as provided by Subsection (g), the ] office   shall use the best available data, including information available   from the Federal Communications Commission, to create or update the   map.          (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 [ produces a map ] that[ :                [ (1) ]  enables the office to identify unserved,   underserved, and served locations [ eligible and ineligible areas, ]   as described by Subsection (a)[ ; and                [ (2)  meets the requirements of Subsection (d) ].          SECTION 5.  Section 490I.0106, Government Code, is amended   by amending Subsections (a), (a-1), (a-2), (a-3), (b), (d), (f),   and (h) and adding Subsections (h-1) and (j) to read as follows:          (a)  The broadband development office shall establish a   program to award contracts,  grants, low-interest loans, and other   financial incentives [ to applicants ] 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 [ to applicants ] 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 [ to applicants ] for   middle-mile broadband infrastructure projects.          (a-3)  The office may award contracts, grants, low-interest   loans, and other financial incentives [ to applicants ] 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  [ The office shall establish eligibility   and award criteria for making awards under this 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.          (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 [ a ] federal commitment to deploy qualifying broadband   service on the date the application is submitted or during the   application process.          (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.0105 or ] 490I.01061, a written protest of an [ the ]   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 [ applicant or project is eligible for   an award or should not receive an award based on the criteria   prescribed by the office ].          (h)  The office shall establish and publish criteria for   award recipients. The criteria must include requirements that :                 (1)  contracts, grants, loans, and other financial   incentiv [Text truncated for display. Full text available on LegiScan.]