H.B. No. 2838 aims to enhance access to and reduce taxation on Internet services in Texas. The bill amends several sections of the Government Code and Tax Code to establish clearer definitions and standards for broadband service, including increasing the minimum download speed from 25 megabits per second to 100 megabits per second and the upload speed from 3 megabits per second to 20 megabits per second. It also mandates the broadband development office to publish an annual map categorizing broadband serviceable locations as unserved, underserved, or served, based on updated criteria. Additionally, the bill introduces a program for awarding grants and financial incentives to expand broadband access, particularly in unserved and underserved areas.

The bill also modifies tax provisions related to Internet access services, specifically removing Internet access service from the list of taxable services, thereby exempting it from certain taxes. It repeals outdated provisions and clarifies that grants received for broadband deployment from various federal and state programs will be considered qualifying broadband grants. The changes will take effect on July 1, 2025, contingent upon receiving a two-thirds vote from both houses of the legislature, or on September 1, 2025, if that vote is not achieved.

Statutes affected:
Introduced: Government Code 403.553, Tax Code 151.00394, Tax Code 151.0101, Tax Code 171.10132 (Tax Code 151, Tax Code 171, Government Code 403)