The bill, S.B. No. 1405, aims to enhance access to and reduce taxation on Internet services in Texas. Key amendments include changing the deadline for the comptroller to publish statistics related to the pole replacement program from the 60th day after receiving funds to November 1 of each year. It also raises the minimum broadband service speed requirements, defining "broadband service" as having a download speed of at least 100 megabits per second and an upload speed of at least 20 megabits per second. Additionally, the bill mandates the broadband development office to classify broadband serviceable locations and establish a program for grants and financial incentives to expand broadband access, particularly in unserved and underserved areas.

Furthermore, the bill modifies tax definitions to exclude "Internet access service" from being classified as a taxable service, thereby reducing the tax burden on such services. It also repeals certain provisions related to broadband funding and clarifies that grants received under specific federal 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 171, Tax Code 151, Government Code 403)