The bill, H.B. No. 2964, aims to enhance broadband service provision in certain rural counties in Texas by amending existing laws and introducing new provisions. It modifies Section 490I.0103(c) of the Government Code to clarify that the comptroller does not have the authority to regulate broadband services or require information from broadband service providers, except as specified in the newly added Section 490I.01063. This new section establishes a framework for funding broadband infrastructure projects in "eligible counties," defined as those with a population between 5,000 and 25,000 that have not received state or federal funding 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 service in these areas.

Additionally, the bill outlines criteria for project eligibility and prioritization, emphasizing the importance of serving underserved or unserved areas and collaborating with local governments or private entities. It mandates the broadband development office to create guidelines for fund applications, project approvals, and monitoring, and requires annual reporting to the legislature on the distribution of funds and project outcomes. The bill also includes provisions for a comprehensive review of the program's effectiveness by September 1, 2030, and sets a deadline for the establishment of guidelines by April 1, 2026. The act is set to take effect on September 1, 2025.

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