The bill, H.B. No. 2964, aims to enhance broadband service provision in certain rural counties in Texas. It amends existing sections of the Government Code to clarify the authority of the comptroller regarding broadband services and introduces new provisions for funding broadband infrastructure in eligible counties. Specifically, it establishes Section 490I.01063, which defines "eligible counties" as those with a population between 5,000 and 25,000 that have not received state or federal funds for broadband projects. The comptroller is tasked with allocating up to $750 million from the broadband infrastructure fund to support grants and loans for the deployment of fiber-to-the-premises broadband services in these areas.

Additionally, the bill outlines criteria for prioritizing funding applications, emphasizing projects that will serve underserved or unserved areas, particularly in educational institutions. It mandates the broadband development office to create guidelines for fund applications and project monitoring, and to report annually to the legislature on the distribution of funds and the effectiveness of the program. The bill also includes provisions for the office to conduct a comprehensive review of the program by September 1, 2030, to assess its impact on closing the broadband access gap in rural counties. The new guidelines must be established by April 1, 2026, and the bill is set to take effect on September 1, 2025.

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