Texas 2021 - 87th Regular

Texas Senate Bill SB154 Compare Versions

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11 87R3101 CXP-D
22 By: Perry S.B. No. 154
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55 A BILL TO BE ENTITLED
66 AN ACT
77 relating to the creation of the broadband office within the Public
88 Utility Commission of Texas and the establishment of a broadband
99 service investment grant program.
1010 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1111 SECTION 1. Subtitle A, Title 2, Utilities Code, is amended
1212 by adding Chapter 18 to read as follows:
1313 CHAPTER 18. BROADBAND OFFICE
1414 Sec. 18.0101. DEFINITIONS. In this chapter:
1515 (1) "Account" means the broadband investment account.
1616 (2) "Broadband service" means Internet service with
1717 the capability of providing:
1818 (A) a download speed of 25 megabits per second or
1919 faster; and
2020 (B) an upload speed of three megabits per second
2121 or faster.
2222 (3) "Grant program" means the program established by
2323 the broadband office under Section 18.0105.
2424 (4) "Rural community" means a municipality with a
2525 population of less than 50,000 or a county with a population of less
2626 than 200,000.
2727 (5) "Unserved area" means a census block that is not
2828 served by wireline or fixed wireless broadband service, according
2929 to publicly available maps and data sets.
3030 Sec. 18.0102. APPLICABILITY. This chapter applies only to
3131 broadband service provided by a private sector provider.
3232 Sec. 18.0103. OFFICE. (a) The broadband office is an
3333 office within the commission.
3434 (b) The commission may employ additional employees
3535 necessary for the discharge of the duties of the broadband office.
3636 Sec. 18.0104. POWERS AND DUTIES. (a) The broadband office
3737 shall:
3838 (1) facilitate and coordinate the efforts of state
3939 agencies, hospitals, schools, and local units of government,
4040 including regional planning commissions, in connection with
4141 broadband service projects;
4242 (2) develop proposals for broadband service
4343 investment and deployment strategies for unserved areas in rural
4444 communities and other areas of this state;
4545 (3) promote and coordinate public sector and private
4646 sector broadband service solutions in support of statewide
4747 broadband service development goals;
4848 (4) assist and promote local and regional broadband
4949 service planning;
5050 (5) pursue and obtain federal sources of broadband
5151 service funding;
5252 (6) develop a framework to measure broadband service
5353 access in this state and designate unserved areas of this state;
5454 (7) develop statewide goals for broadband service
5555 deployment in unserved areas in rural communities and other
5656 unserved areas designated under Subdivision (6);
5757 (8) manage and award funds allocated to the broadband
5858 office for broadband service projects; and
5959 (9) serve as an information clearinghouse in relation
6060 to federal programs providing assistance to local entities with
6161 respect to broadband service.
6262 (b) This chapter does not:
6363 (1) grant the commission authority to regulate
6464 broadband services or broadband service providers or, except as
6565 required of a grant applicant or recipient under Section 18.0105,
6666 to require broadband service providers to submit information to the
6767 commission; or
6868 (2) require or authorize the commission to require a
6969 broadband service provider or telecommunications provider to
7070 participate in any broadband service planning, activities, or
7171 initiatives conducted by the broadband office or the commission.
7272 Sec. 18.0105. BROADBAND GRANT PROGRAM. (a) The broadband
7373 office shall establish a grant program to provide grants to
7474 applicants for the expansion of access to broadband service in
7575 areas that are unserved in relation to broadband services. The
7676 broadband office may provide a grant under this section only for a
7777 project to provide broadband service in an unserved area.
7878 (b) The broadband office shall establish and publish
7979 eligibility criteria for grant recipients. The criteria must
8080 require that a grant applicant may be only:
8181 (1) an organization operated for profit or not for
8282 profit, including a cooperative;
8383 (2) a telecommunications provider; or
8484 (3) a facilities-based broadband service provider,
8585 including a wireless provider.
8686 (c) A grant application must include:
8787 (1) a description of the type of broadband service
8888 infrastructure to be deployed;
8989 (2) a description of the proposed project territory
9090 and the number of homes, farms, schools, public facilities,
9191 hospitals, and businesses that would be served by the project;
9292 (3) evidence that the proposed project territory
9393 includes only unserved areas;
9494 (4) evidence that the applicant provided the notice
9595 required by Subsection (d);
9696 (5) the total cost of the proposed project and an
9797 estimated time frame for completion; and
9898 (6) any sources of money that would supplement the
9999 grant for that project, such as a federal grant.
100100 (d) Before submitting a grant application, an entity must
101101 provide notice of the entity's intent to submit an application to:
102102 (1) all political subdivisions and hospitals that
103103 provide services in or adjacent to the proposed project territory;
104104 and
105105 (2) any broadband service providers that provide
106106 broadband service adjacent to the proposed project territory.
107107 (e) The broadband office may not:
108108 (1) deny an application solely because the deployment
109109 project has additional sources of funding or other grants that can
110110 be used for the project;
111111 (2) favor a particular technology in awarding grants;
112112 or
113113 (3) except as otherwise provided by this section,
114114 evaluate applications based on information about the applicant that
115115 is not included in the application.
116116 (f) The broadband office shall:
117117 (1) divide the state into at least five regions;
118118 (2) award grants as equitably across regions as
119119 possible; and
120120 (3) prioritize applications for projects for unserved
121121 areas in counties with a population of less than 10,000 when
122122 practical.
123123 (g) The broadband office shall award grants on a competitive
124124 basis and only after considering the following:
125125 (1) the relative need for broadband service
126126 infrastructure and existing Internet service speeds in the proposed
127127 project territory;
128128 (2) the percentage of the homes, farms, schools,
129129 public facilities, hospitals, and businesses in the proposed
130130 project territory that will be provided access to broadband service
131131 by the project;
132132 (3) the geographic diversity of the proposed projects
133133 of all applicants under consideration;
134134 (4) the potential economic effects of granting an
135135 application for the territory of a proposed project;
136136 (5) the applicant's total proposed budget for the
137137 proposed project, including the amount or percentage of matching
138138 money, if any;
139139 (6) local support for the proposed project, including
140140 any documentation or evidence that the applicant has coordinated
141141 with the local community to be served or notified the local
142142 community to be served of the applicant's proposed project;
143143 (7) the ability of the proposed broadband service
144144 provider to maintain broadband service quality while increasing
145145 parameters relating to the size of the provider's network, such as
146146 the number of users, the number of network nodes, the number of
147147 services provided, or the network's geographic spread;
148148 (8) whether the proposed project will delay the
149149 provision of broadband service to any neighboring areas; and
150150 (9) any other factors the broadband office determines
151151 are relevant to the proposed project.
152152 (h) The broadband office is not required to approve any
153153 grant applications.
154154 (i) The broadband office shall:
155155 (1) post on the commission's Internet website
156156 information about the application process and the receipt of
157157 funding and shall update that information as necessary; and
158158 (2) make each application available on the
159159 commission's Internet website for a period of at least 30 days
160160 before the office makes a decision on the application.
161161 (j) During the 30-day posting period described by
162162 Subsection (i) for an application, the broadband office shall
163163 accept from any interested party a written protest of the
164164 application relating to whether the applicant or project is
165165 eligible for a grant or should not receive a grant based on the
166166 criteria prescribed by the office. The broadband office:
167167 (1) shall provide a copy of the protest to the
168168 applicant;
169169 (2) may request additional information from the
170170 applicant relating to the protest;
171171 (3) shall, if the office intends to deny any part of
172172 the application based on a protest regarding the proposed project
173173 territory or budget:
174174 (A) notify the applicant; and
175175 (B) allow the applicant not more than seven days
176176 to amend the territory or budget in response to the protest; and
177177 (4) shall, if the office intends to grant the
178178 application, issue a written notice of that intent to the protestor
179179 not later than the 15th day before the date the office grants the
180180 application.
181181 (k) A single grant:
182182 (1) may not exceed $250,000; and
183183 (2) may fund not more than 30 percent of the total cost
184184 of the proposed project.
185185 (l) The broadband office may require an applicant to
186186 consolidate multiple projects in a single census block into one
187187 grant application.
188188 (m) The broadband office may provide a grant in conditional
189189 installments to ensure that a grant recipient complies with any
190190 grant program requirements.
191191 (n) The commission by rule shall adopt minimum service
192192 standards for broadband service provided by a grant recipient in
193193 the project territory. The commission shall consider standards used
194194 by the Federal Communications Commission for recipients of money
195195 from the Connect America Fund. The standards must require that
196196 during the three-year period following the completion of a project,
197197 the grant recipient:
198198 (1) must provide broadband service in the project
199199 territory at rates reasonably comparable to rates for comparable
200200 services in urban areas; and
201201 (2) may not establish a cap on data usage in the
202202 project territory.
203203 (o) Before awarding a grant under this section, the
204204 broadband office shall enter into a written agreement with the
205205 entity to be awarded the grant money specifying that:
206206 (1) if the commission finds that the grant recipient
207207 has not complied with minimum service standards adopted under
208208 Subsection (n) or any other applicable rules or standards of the
209209 commission adopted under this section:
210210 (A) the recipient shall repay the grant or a
211211 prorated portion of the grant to the state at an agreed rate and on
212212 agreed terms; and
213213 (B) the broadband office will not distribute to
214214 the recipient any grant money that remains to be distributed to the
215215 recipient; and
216216 (2) if, as of a date provided in the agreement, the
217217 grant recipient has not used grant money awarded under this section
218218 for the purposes for which the grant was intended, the recipient
219219 shall repay that amount to the state at an agreed rate and on agreed
220220 terms.
221221 (p) A grant recipient shall:
222222 (1) notify the broadband office when the project is
223223 complete; and
224224 (2) provide annual reports to the broadband office
225225 during the three-year period following the completion of the
226226 project on the recipient's compliance with the requirements of this
227227 section.
228228 (q) The broadband office may request information from a
229229 grant recipient to verify the completion of a project and shall make
230230 reports submitted under Subsection (p) publicly available.
231231 (r) The broadband office shall provide a report to the
232232 legislature not later than December 1 of each even-numbered year
233233 that includes:
234234 (1) the amount of money granted under this section
235235 during the reporting period;
236236 (2) any amount of money approved under this section
237237 during the reporting period but not yet disbursed;
238238 (3) for each grant awarded during the reporting
239239 period, the name of the grantee and the location and a description
240240 of the project;
241241 (4) a progress report on ongoing projects; and
242242 (5) a report on all projects completed during the
243243 reporting period.
244244 Sec. 18.0106. BROADBAND INVESTMENT ACCOUNT. (a) The
245245 broadband investment account is an account in the general revenue
246246 fund.
247247 (b) The account consists of:
248248 (1) appropriations of money to the account by the
249249 legislature;
250250 (2) gifts, grants, including federal grants, and other
251251 donations received under Section 18.0107; and
252252 (3) interest earned on the investment of money in the
253253 account.
254254 (c) Money in the account may be appropriated only to the
255255 broadband office for purposes of the grant program.
256256 (d) The account is exempt from the application of Section
257257 404.071, Government Code.
258258 Sec. 18.0107. GIFTS, GRANTS, AND DONATIONS. The broadband
259259 office may accept gifts, grants, and donations from any source that
260260 are made for the purposes of the grant program. The broadband
261261 office shall deposit to the credit of the account money received
262262 under this section.
263263 Sec. 18.0108. RULEMAKING. The commission by rule shall
264264 implement and administer the grant program.
265265 SECTION 2. This Act takes effect September 1, 2021.