The bill, S.B. No. 1405, aims to enhance access to broadband services in Texas while reducing the associated taxation. Key amendments include redefining "qualifying broadband service" to align with updated standards, increasing the minimum download speed to 100 megabits per second and upload speed to 20 megabits per second. The bill also introduces new provisions for the broadband development office to award contracts, grants, and low-interest loans to expand broadband access, particularly in unserved and underserved areas. Additionally, it mandates the publication of statistics related to broadband service applications and reimbursements on the comptroller's website.

Furthermore, the bill modifies tax code definitions to exclude "Internet access service" from certain taxable services, thereby reducing the tax burden on broadband services. It repeals outdated provisions and clarifies that the changes will not affect tax liabilities incurred before the bill's effective date. The act is set to 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, Government Code 403, Tax Code 171)
Senate Committee Report: Government Code 403.553, Tax Code 151.00394, Tax Code 151.0101, Tax Code 171.10132 (Tax Code 151, Government Code 403, Tax Code 171)
Engrossed: Government Code 403.553, Tax Code 151.00394, Tax Code 151.0101, Tax Code 171.10132 (Tax Code 151, Government Code 403, Tax Code 171)
House Committee Report: Government Code 403.553, Tax Code 151.00394, Tax Code 151.0101, Tax Code 171.10132 (Tax Code 151, Government Code 403, Tax Code 171)