TITLE 34. PUBLIC FINANCE
PART 1. COMPTROLLER OF PUBLIC ACCOUNTS
CHAPTER 16. COMPTROLLER GRANT PROGRAMS
SUBCHAPTER
B.
DIVISION 1. BROADBAND DEVELOPMENT MAP
34 TAC §§16.21 - 16.24The Comptroller of Public Accounts proposes amendments to §16.21, concerning broadband development map, §16.22, concerning map challenges; criteria, §16.23, concerning challenge process; deadlines, and §16.24, concerning challenge determinations.
The legislation enacted within the last four years that provides the statutory authority for these sections are Senate Bill 1238, 88th Legislature, R.S., 2023 and Senate Bill 1405, 89th Legislature, R.S., 2025.
The amendments to §16.21 remove the requirement for the office to create, update or publish a map if the office adopts a map produced by the Federal Communications Commission and include conforming changes.
The amendments to §16.22 provide that a challenge may occur only if the office does not adopt a map produced by the Federal Communications Commission and remove references to a challenge process if the office adopts a map produced by the Federal Communications Commission.
The amendments to §16.23 remove unnecessary deadlines related to the office adopting a map produced by the Federal Communications Commission and remove unnecessary notice procedures. The amendments maintain the challenge procedures for a map the office creates for future use in the event the office chooses to create its own map.
The amendments to §16.24 modify the name of the section to more specifically reflect the outcome of the challenge process.
Brad Reynolds, Chief Revenue Estimator, has determined that during the first five years that the proposed amended rules are in effect, the rules: will not create or eliminate a government program; will not require the creation or elimination of employee positions; will not require an increase or decrease in future legislative appropriations to the agency; will not require an increase or decrease in fees paid to the agency; will not increase or decrease the number of individuals subject to the rules' applicability; and will not positively or adversely affect this state's economy.
Mr. Reynolds also has determined that the proposed amended rules would have no fiscal impact on the state government, units of local government, or individuals. The proposed amended rules would benefit the public by improving the clarity and implementation of the sections. There would be no anticipated economic cost to the public. The proposed amended rules would have no fiscal impact on small businesses or rural communities.
You may submit comments on the proposal or information related to the cost, benefit, or effect of the proposal, including any applicable data, research or analysis to Bryant Clayton, Director, Broadband Development Office P.O. Box 13528 Austin, Texas 78711 or to the email address: broadband@cpa.texas.gov. The comptroller must receive your comments or other information no later than 30 days from the date of publication of the proposal in the Texas Register.
The amendments are proposed under Government Code, §490I.0109, which permits the comptroller to adopt rules as necessary to implement Chapter 490I regarding the Texas Broadband Development Office.
The amendments implement Government Code, Chapter 490I.
§16.21.
(a) The comptroller shall create, update annually, and publish on the comptroller's website a broadband development map depicting the availability of broadband service for each broadband serviceable location in this state. The office shall use the best available information, including information available from the Federal Communications Commission, political subdivisions, and broadband service providers, to create or update the map. The office is not required to create, update, or publish a map if the office adopts a map produced by the Federal Communications Commission that enables the office to identify unserved, underserved, and served locations.
[(b) Except as provided by subsection (c) of this section, for the purpose of developing the broadband development map, the scope of a designated area in this state shall consist of a county.]
[(c) If the comptroller determines that developing the broadband development map at the county level is not technically feasible or practical, the comptroller may develop the map using a smaller geographic unit for which information is available from the Federal Communications Commission.]
(b) [(d)] The comptroller shall, at a minimum, display for each designated area on the broadband development map:
(1) each unserved, underserved, and served broadband serviceable location;
(2) an indication of whether each broadband serviceable location is ineligible to receive funding on account of an existing federal commitment to deploy qualifying broadband service;
(3) the number of broadband service providers that serve the designated area;
(4) an indication of whether the designated area has access to internet service that is not broadband service, regardless of the technology used to provide the service;
(5) each public school campus with an indication of whether the public school campus has access to broadband service; and
(6) the number and percentage of unserved, underserved, and served broadband serviceable locations within the designated area.
§16.22.
(a) Subject to subsection (c) of this section and only if the comptroller does not adopt the map produced by the Federal Communications Commission as provided under Government Code, §490I.0105(q), a broadband service provider or a political subdivision of this state may challenge the designation of a broadband serviceable location located in this state and petition the office to reclassify the location on the broadband development map.
(b) A challenge submitted under this section must be submitted on forms and contain the information prescribed by the office. The office shall publish on its website the requirements and criteria for submitting a challenge under this section.
(c) A challenge seeking reclassification of a broadband serviceable location may only be made on the following basis:
(1) that reliable broadband service at the location is or is not available within 10 business days of a request for service;
(2) that the actual speed of the fastest available service tier at the location does or does not meet the broadband service speed thresholds as established by Government Code, §490I.0105(a);
(3) that the actual round-trip latency of broadband service at the location exceeds 100 milliseconds;
(4) that the availability of reliable broadband service at the location is subject to a data cap that results in actual speeds of the fastest available service tier falling below the broadband service speed thresholds as established by Government Code, §490I.0105(a); or
(5) that the location is or is not subject to an existing federal commitment to deploy qualifying broadband service to the location.
[(d) If the comptroller adopts a map produced by the Federal Communications Commission as provided under Government Code, §490I.0105(q), a challenge may only be submitted under this section if the person or entity submitting the challenge provides evidence that the person or entity previously submitted a successful challenge to the Federal Communications Commission for the broadband serviceable locations for which the entity is seeking a reclassification.]
§16.23.
(a)
A challenge under this subchapter must be submitted to the office not later than the 60th day after the broadband development map is published or updated on the comptroller's website. [If the comptroller adopts a map produced by the Federal Communications Commission as provided under Government Code, §490I.0105(q), a challenge under this subchapter must be submitted not later than the 30th day after the entity seeking to challenge a location submitted a successful challenge to the Federal Communications Commission.]
(b) The office may reject a challenge without further action if the challenge is not submitted on forms prescribed by the office or does not otherwise comply with this division or any criteria established by the office as provided by this subchapter.
(c) The office shall provide notice of an accepted challenge to each affected political subdivision and broadband service provider by posting notice of the challenge on the comptroller's website. For the purposes of this section, an affected political subdivision or broadband service provider shall be deemed to have received notice on the date the notice is posted on the comptroller's website.
(d) Not later than the 45th day after the date that the office posts the notice required under subsection (c) of this section, an impacted political subdivision or a broadband service provider may provide information to the office showing whether the broadband serviceable locations that have been challenged should or should not be reclassified.
(e) Not later than the 75th day after the date that the office posts the notice required under subsection (c) of this section, the office shall determine whether to reclassify the challenged broadband serviceable locations and shall update the map as necessary.
[(f) In addition to the notice required under subsection (c) of this section, the office shall send written notice of the challenges that have been received under this subchapter to each political subdivision and broadband service provider that subscribes to an email distribution list managed by the office for the purpose of receiving notices from the office. Notwithstanding this subsection, the date the notice is received shall be deemed to be the date a notice issued under subsection (c) of this section is posted on the comptroller's website.]
§16.24.
Challenge] Determinations.
(a) The office shall consider the following in making a determination of whether to reclassify a broadband serviceable location:
(1) the availability of reliable broadband service;
(2) an evaluation of actual Internet speed test and reliability data;
(3) the existence or non-existence of an existing federal commitment to deploy qualifying broadband service to a location; and
(4) any other information the office determines may be useful in determining whether a location should be reclassified.
(b) A broadband serviceable location that is classified as a served location solely because the location is subject to an existing federal commitment to deploy qualifying broadband service may be reclassified if:
(1) federal funding is forfeited or the recipient of the funding is disqualified from receiving the funding; and
(2) the location is otherwise eligible to receive funding under the program.
(c) A determination made by the office under this subsection is not a contested case for purposes of Government Code, Chapter 2001.
(d) If within one year after making an award the office determines that at the time of making the award a broadband serviceable location was not eligible to receive funding under this subchapter, the office may proportionately reduce the amount of the award and the grant recipient shall be required to return any grant funds that were awarded as a result of the classification error. Prior to making a decision to reduce the amount of the award, the office shall provide an opportunity to the award recipient to demonstrate cause for why the award should not be reduced. The office shall reduce the amount required to be returned under this subsection if the office determines, in its sole discretion, that the grant funds or any portion thereof were expended in good faith.
The agency certifies that legal counsel has reviewed the proposal and found it to be within the state agency's legal authority to adopt.
Filed with the Office of the Secretary of State on November 5, 2025.
TRD-202504004
Victoria North
General Counsel for Fiscal and Agency Affairs
Comptroller of Public Accounts
Earliest possible date of adoption: December 21, 2025
For further information, please call: (512) 475-2220
DIVISION 2. BROADBAND DEVELOPMENT PROGRAM
34 TAC §§16.30, 16.31, 16.35 - 16.38, 16.40 - 16.42, 16.46The Comptroller of Public Accounts proposes amendments to §16.30, concerning definitions, §16.31, concerning notice of funds availability, §16.35, concerning program eligibility requirements, §16.36, concerning application process generally, §16.40, concerning evaluation criteria, §16.41, concerning application protest process, §16.42, concerning awards; grant agreement, and §16.46, concerning forms; notices. The Comptroller of Public Accounts also proposes new §16.37, concerning direct contract and grant awards, and new §16.38, concerning fixed amount awards. The new sections replace §16.37, concerning overlapping applications or project areas, and §16.38, concerning overlapping project areas in noncommercial applications, which the comptroller will repeal in a separate rulemaking.
Legislation enacted within the last four years providing statutory authority for these sections are Senate Bill 1238, 88th Legislature, R.S., 2023 and Senate Bill 1405, 89th Legislature, R.S., 2025.
The amendments to §16.30 remove the "application protest period" and "designated area" definitions, add the "gigabit-level broadband service" definition, and add the "interested party" definition, which was previously in §16.41. The amendments modify the "served location" definition for brevity. The amendments to the "unserved location" definition provide speed requirements for public schools and community anchor institutions.
The amendments reword §16.31 for brevity and modify the publication process. The amendments remove the requirement for a notice of funds availability to state the minimum and maximum amounts of grant funds available for each application. The amendments clarify that eligibility criteria will be in each notice of funds availability.
The amendments to §16.35 change the title to "Competitive Grant Limitations." The amendments remove eligibility criteria details as unnecessary because §16.31 requires a notice of funds availability to include eligibility criteria. The amendments modify non-commercial provider limitations to competitive grants for the deployment of last-mile broadband service projects in subsection (b).
The amendments to §16.36 add "competitive grant" in the title and in subsection (b) to specify that this section applies to competitive grants. The amendments change "protest" to "publishing" to describe the 30-day period in subsection (d). The amendments describe notification after the challenge process and requests for additional information in subsections (f) and (g) respectively. The amendments remove certain provisions related to the challenge process for placement in §16.30 and §16.41.
New §16.37 describes the office's ability to award direct contract or grant awards on a non-competitive basis to a political subdivision in subsection (a). The section permits the office to award a direct contract or grant award with a grant agreement and to require information be submitted electronically in subsection (b).
New §16.38 describes fixed amount awards in subsection (a). The section permits the office to award a fixed amount award for competitive and direct grants without regard to the Texas Acquisition Threshold as defined in the Texas Grant Management Standards in subsection (b).
The amendments to §16.40 remove the reference to Government Code, §490I.0105 in subsection (a)(4) as required by Senate Bill 1405, 89th Legislature, R.S., 2025.
The amendments to §16.41 change the title of the section to "Application Challenge Process" to reflect the more commonly used term and make conforming changes throughout the section. The amendments in subsection (a) provide that only applications related to last-mile broadband infrastructure projects are subject to the challenge process and only the location may be challenged. The amendments describe under what circumstances a successfully challenged application may be amended and resubmitted in subsections (d) and (g). The amendments add subsections (g), (h) and (i) that are transferred from §16.36(f), (g) and (i) respectively, and make a conforming change to subsection (i).
The amendment to §16.42 adds the statutory requirement for last-mile infrastructure grant recipients to make reasonable efforts to restore private property affected by a broadband infrastructure project in subsection (d).
The amendments to §16.46 allow notice by certified mail and make conforming changes in subsections (c) and (d). The amendments remove subsection (e) relating to §16.34 that was previously repealed.
Brad Reynolds, Chief Revenue Estimator, has determined that during the first five years that the proposed amended rules and the proposed new rules are in effect, the rules: will not create or eliminate a government program; will not require the creation or elimination of employee positions; will not require an increase or decrease in future legislative appropriations to the agency; will not require an increase or decrease in fees paid to the agency; will not increase or decrease the number of individuals subject to the rules' applicability; and will not positively or adversely affect this state's economy.
Mr. Reynolds also has determined that the proposed amended rules and the proposed new rules would have no fiscal impact on the state government, units of local government, or individuals. The proposed amended rules would benefit the public by improving the clarity and implementation of the sections. The proposed amended rules would update and streamline broadband development program administration. The proposed new rules would benefit the public by providing greater flexibility in broadband project funding and facilitating broadband deployment in eligible areas. There would be no significant economic cost to the public. The proposed amended rules and proposed new rules would have no fiscal impact on small businesses or rural communities.
You may submit comments on the proposal or information related to the cost, benefit, or effect of the proposal, including any applicable data, research or analysis, to Bryant Clayton, Director, Broadband Development Office, P.O. Box 13528 Austin, Texas 78711 or to the email address: broadband@cpa.texas.gov. The comptroller must receive your comments or other information no later than 30 days from the date of publication of the proposal in the Texas Register.
The amendments are proposed under Government Code, §490I.0109, which permits the comptroller to adopt rules as necessary to implement Chapter 490I regarding the Texas Broadband Development Office.
The amendments implement Government Code, Chapter 490I.
§16.30.
As used in this subchapter and in these rules, the following words and terms shall have the following meanings, unless the context clearly indicates otherwise:
(1) Applicant--A person that has submitted an application for an award under this subchapter.
[(2) Application protest period--A period of at least thirty days beginning on the first day after an application is posted under §16.36(d) of this subchapter.]
(2) [(3)] Broadband development map--The map adopted or created under Government Code, §490I.0105.
(3) [(4)] Broadband service--Internet service that delivers transmission speeds capable of providing:
(A) a download speed of not less than 100 Mbps; or
(B) an upload speed of not less than 20 Mbps; and
(C) network round-trip latency of less than or equal to 100 milliseconds based on the 95th percentile of speed measurements.
(4) [(5)] Broadband serviceable location--A business or residential location in this state at which broadband service is, or can be, installed, including a community anchor institution.
(5) [(6)] Census block--The smallest geographic area for which the U.S. Bureau of the Census collects and tabulates decennial census data as shown on the most recent on Census Bureau maps.
(6) [(7)] Commercial broadband service provider--A broadband service provider engaged in business intended for profit, a telephone cooperative, an electric cooperative, or an electric utility that offers broadband service or middle-mile broadband service for a fare, fee, rate, charge, or other consideration.
(7) [(8)] Community anchor institution--An entity such as a school, library, health clinic, health center, hospital or other medical provider, public safety entity, institution of higher education, public housing organization, or community support organization that facilitates greater use of broadband service by vulnerable populations, including, but not limited to, low-income individuals, unemployed individuals, children, the incarcerated, and aged individuals.
(8) Gigabit-level broadband service--Internet service that delivers transmission speeds capable of providing:
(A) a download speed of not less than 1000 Mbps; or
(B) an upload speed of not less than 20 Mbps; and
(C) network round-trip latency of less than or equal to 100 milliseconds based on the 95th percentile of speed measurements.
[(9) Designated area--A census block or other area as determined under §16.21 of this subchapter.]
(9) [(10)] Grant funds--Grants, low-interest loans, and other financial incentives awarded to applicants under this subchapter for the purpose of expanding access to and adoption of broadband service.
(10) [(11)] Grant recipient--An applicant who has been awarded grant funds under this subchapter.
(11) Interested party--A person, including an individual, corporation, organization, government or governmental subdivision or agency, business trust, estate, trust, partnership, association, or any other legal entity, that resides, is located, or conducts business in the project area subject to challenge. The term includes a broadband service provider that is not located in the project area but who proposes to provide broadband service in the project area.
(12) Mbps--Megabits per second.
(13) Middle mile infrastructure--Any broadband infrastructure that does not connect directly to an end-user location, including a community anchor institution. The term includes:
(A) leased dark fiber, interoffice transport, backhaul, carrier-neutral internet exchange facilities, carrier-neutral submarine cable landing stations, undersea cables, transport connectivity to data centers, special access transport, and other similar services; and
(B) wired or private wireless broadband infrastructure, including microwave capacity, radio tower access, and other services or infrastructure for a private wireless broadband network, such as towers, fiber, and microwave links.
(C) The term does not include provision of Internet service to end-use customers on a retail basis.
(14) Non-commercial broadband service provider--A broadband service provider that is not a commercial broadband service provider.
(15) Office--The Broadband Development Office created under Government Code, §490I.0102.
(16) Project area--The area, consisting of one or more broadband serviceable locations, identified by an applicant in which the applicant proposes to deploy broadband service or middle mile infrastructure.
(17) Public school--A school that offers a course of instruction for students in one or more grades from prekindergarten through grade 12 and is operated by a governmental entity.
(18) Qualifying broadband service--Broadband service that meets the minimum speed, latency and reliability thresholds prescribed by the office in each applicable notice of funds availability.
(19) Reliable broadband service--Broadband service that is accessible to a location via:
(A) fiber-optic technology;
(B) Cable Modem/ Hybrid fiber-coaxial technology;
(C) digital subscriber line (DSL) technology; or
(D) terrestrial fixed wireless technology utilizing entirely licensed spectrum or using a hybrid of licensed and unlicensed spectrum.
(20)
Served location--A broadband serviceable location that is neither an unserved nor an underserved location [has access to reliable broadband service that exceeds the minimum threshold for an underserved location or a location that is subject to an existing federal commitment to deploy qualifying broadband service].
(21) Underserved location--A broadband serviceable location that has access to reliable broadband service but does not have access to reliable broadband service with the capability of providing:
(A) a download speed of not less than 100 Mbps;
(B) an upload speed of not less than 20 Mbps; and
(C) a network round-trip latency of less than or equal to 100 milliseconds based on the 95th percentile of speed measurements as established under Government Code, §490I.0101.
(22) Unserved location--A broadband serviceable location that:
(A) does not have access to reliable broadband service; or
(B) is a public school or community anchor institution and does not have access to reliable broadband service that is gigabit-level broadband service.
§16.31.
(a)
The office shall [use one or more methods as necessary to] provide notice of the availability of funds for competitive grant awards and may publish the notice on [, including publication in] the [Texas Register or] Electronic State Business Daily website or[. The comptroller may make available a copy of the notice of funds availability on] the comptroller's website. [For the purposes of these rules, the date the notice of funds availability is issued is the earlier of the first day the notice is published in the Texas Register or on the Electronic State Business Daily website.]
(b) The notice of funds availability published under subsection (a) of this section shall include:
(1) the total amount of grant funds available for award;
[(2) the minimum and maximum amount of grant funds available for each application;]
(2) [(3)] eligibility criteria [requirements];
(3) [(4)] application requirements;
(4) [(5)] award and evaluation criteria; and
(5) [(6)] the date by which applications must be submitted to the office;
(c) The notice may include:
(1) limitations on the geographic distribution of grant funds;
(2) the anticipated date of award; and
(3) any other information the office determines is necessary for award.
§16.35.
Program Eligibility Requirements].
[(a) Eligible participants of the program include:]
[(1) political subdivisions of this state;]
[(2) commercial broadband service providers;]
[(3) non-commercial broadband service providers; and]
[(4) partnerships between political subdivisions of this state, commercial broadband service providers, noncommercial broadband service providers, or any combination thereof.]
(a) [(b)] The office may not award grant funds for deployment of last-mile broadband service for a broadband serviceable location to a non-commercial broadband service provider [an otherwise eligible participant under subsection (a)(3) of this section] if a commercial broadband service provider has submitted an eligible application for the same location.
(b) [(c)] For the purposes of this subchapter, a joint application submitted by any combination of a political subdivision, commercial broadband service provider, or a non-commercial broadband service provider that includes at least one commercial broadband service provider shall be deemed to be an application submitted by a commercial broadband service provider.
§16.36.
(a) No award for competitive grant funding will be disbursed by the office except pursuant to an application submitted in accordance with this subchapter.
(b) An application for competitive grant funding under this subchapter shall be submitted on the forms and in the manner prescribed by the office. The office may require that applications be submitted electronically.
(c) Prior to publication of application information pursuant to Government Code, §490I.0106(e), the office may undertake an examination to determine whether the application appears on its face to comply with applicable program requirements. The office may reject and take no further action on an application that does not appear to comply with applicable program requirements on its face.
(d) The office shall for a period of at least 30 days publish on its website information from each accepted application, including the applicant's name, the project area targeted for expanded broadband service access or adoption by the application, and any other information the office considers relevant or necessary. The information will remain on the website for a period of at least 30 days before the office makes a decision on the application.
(e)
During the 30-day application publishing [protest] period described by subsection (d) of this section [for an application], the office shall accept from any interested party a written protest of the application relating to whether the applicant or project is eligible for an award or should not receive an award based on the criteria prescribed by the office. A protest of an application must be submitted as provided under §16.41 of this subchapter.
(f)
After the publishing period in subsection (d) of this section and any challenge process under §16.41 of this subchapter, the office will notify grant recipient(s). [Notwithstanding any deadline for submitting an application, if the office upholds a protest on the grounds that one or more of the broadband serviceable locations in a project area is not eligible to receive funding, the applicant may resubmit an amended application as provided under §16.41 of this subchapter without the challenged broadband serviceable locations not later than 30 days after the date that the office upheld the protest. An amended application may not include additional areas or broadband serviceable locations not already included in the original application.]
(g)
During the application review process, the office may require an applicant to submit additional information the office determines is necessary to make an award decision. [If the office upholds a protest and the applicant resubmits an application in accordance with subsection (f) of this section, the resubmitted application is not subject to further protest.]
[(h) For the purposes of this section "interested party" means a person, including an individual, corporation, organization, government or governmental subdivision or agency, business trust, estate, trust, partnership, association, or any other legal entity, that resides, is located, or conducts business in the project area subject to protest and also includes a broadband service provider that is not located in the project area but who proposes to provide broadband service in the project area.]
[(i) Notwithstanding subsection (e) of this section, a broadband service provider who has not provided information requested by the office under Government Code, §490I.0105 or §490I.01061, may not submit a protest of an application made under this subchapter.]
§16.37.
(a) The office may make a direct contract or grant award on a non-competitive basis to a political subdivision of this state.
(b) No award for direct funding will be disbursed by the office except pursuant to a contract or grant agreement executed in accordance with this subchapter. The office may require that information regarding the award be submitted electronically.
§16.38.
(a) For the purposes of this subchapter, a fixed amount award is a type of grant agreement pursuant to which the office provides a specific amount of funding without regard to actual costs incurred under the award.
(b) Pursuant to Government Code, § 783.007(b) allowing for variances from the uniform assurances and standard financial conditions, the office may determine the amount per award and provide a fixed amount award for competitive and direct grants without regard to the Texas Acquisition Threshold as defined in the Texas Grant Management Standards. All other uniform assurances and standard financial conditions developed pursuant to Government Code, § 783.006 remain applicable to local governments receiving financial assistance from the office.
§16.40.
(a) The office shall establish the eligibility and award criteria applicable for each round of competitive grant funding by publishing the criteria in a notice of funds availability as provided by §16.31 of this subchapter. In establishing eligibility and award criteria, the office shall:
(1) prioritize applications that expand access to and adoption of broadband service in designated areas in which the highest percentage of broadband serviceable locations are unserved or underserved locations;
(2) prioritize applications that expand access to broadband service in public and private primary and secondary schools and institutions of higher education;
(3) prioritize applications that connect end-user locations with end-to-end fiber optic facilities that meet speed, latency, reliability, consistency, scalability, and related criteria as the office shall determine;
(4)
give preference to applicants that provide the information requested by the office under Government Code, [§490I.0105 and] §490I.01061; and
(5) take into consideration whether an applicant has forfeited federal funding for defaulting on a project to deploy qualifying broadband service.
(b) In addition to the evaluation criteria provided under subsection (a) of this section, the office may include and provide preferences for the following evaluation criteria in the notice of funds availability:
(1) application participant(s) experience;
(2) technical specifications including broadband transmission speeds (Mbps upload and download) that will be deployed as a result of the project;
(3) estimated project completion date;
(4) the availability of matching funds including amount, percentage, and source of matching funds;
(5) cost effectiveness and overall impact as measured by the total project cost, the total number of prospective broadband service locations to be served by the project, the proportion of unserved and underserved locations to be served by the project compared to the number of serviceable locations within the designated area(s) the project is located, the proportion of recipients to be served by the project compared to the population of the designated area(s) in which the project is located, and the project cost per prospective broadband service recipient;
(6) geographic location including, but not limited to, rural areas where because of population density the cost of broadband expansion is characterized by disproportionately high capital and operational costs;
(7) community, non-profit, or cooperative support or participation in the project;
(8) affordability of broadband services in the areas in which the proposed project is located prior to the deployment of broadband services as a result of the project;
(9) consumer price of broadband services that applicant proposes to deploy as a result of the project;
(10) participation in federal programs that provide low-income consumers with subsidies for broadband services;
(11) small business and historically underutilized business involvement or subcontracting participation; and
(12) any additional factors the office may determine are necessary to further the expansion and adoption of broadband service.
(c) Notwithstanding subsection (a)(3) of this section, the office may consider an application for a broadband infrastructure project that does not employ end-to-end fiber optic facilities if the use of an alternative technology:
(1) is proposed for a high-cost area;
(2) may be deployed at a lower cost than deploying fiber optic technology; or
(3) meets the speed, latency, reliability, consistency, scalability, and related criteria as the office shall determine for each applicable notice of funds availability.
§16.41.
Protest] Process.
(a)
The office shall publish on the office's website criteria and requirements for submitting a challenge under this section for applications related to last-mile broadband infrastructure projects. An interested party may only challenge an application on the basis that the application includes broadband serviceable locations that are ineligible for an award. The inclusion of a location in a project may only be challenged if [An application protest may only be made on the following basis]:
(1)
the number of served locations included in a proposed project exceeds twenty percent of the total number of locations to which service would be deployed by the project; or [applicant is ineligible to receive an award;]
(2)
the broadband serviceable location is subject to an existing federal commitment to deploy qualifying broadband service to the location. [application contains broadband serviceable locations that are not eligible to receive funding because of an existing federal commitment to deploy qualifying broadband service to the location; or]
[(3) the project is ineligible to receive or should not receive an award based on the criteria prescribed by the office as provided by §16.40(a) of this subchapter.]
(b)
A challenge [protest] submitted under this section shall be submitted electronically in the manner and on the forms prescribed by the office and shall be accompanied by all relevant supporting documentation. The interested [protesting] party submitting the challenge bears the burden to establish that a location [an applicant or project should not receive or] is ineligible for an award [based on the criteria prescribed by the office].
(c) The office shall review the protest and make a determination as to whether the protest should be upheld. The office shall provide notice of its determination to each affected applicant, including the right, if any, to submit an amended application under subsection (d) of this section.
(d)
If the office upholds a challenge [protest] on the basis [that one or more broadband serviceable locations are not eligible to receive funding under the criteria] prescribed by the office, an applicant may amend and resubmit an application without the challenged locations and re-scope the application or project area if, after the protest is upheld:
(1) the remaining number of broadband serviceable locations in the project area is greater than 50% of the original number of locations in the project area; or
(2)
[the remaining number of broadband serviceable locations in the project area is less than 50% of the original number of locations in the project area and] the office permits, at its sole discretion, the applicant to amend the application.
(e) If an amended application without the challenged locations is not received by the office by the 30th day after receiving notice of the determination under subsection (c) of this section, the office may remove the application from grant funding consideration.
(f) A determination made by the office under this section is not a contested case for purposes of Government Code, Chapter 2001.
(g) Notwithstanding any deadline for submitting an application, if the office upholds a challenge, the applicant may resubmit an amended application as provided under this subchapter without the challenged broadband serviceable locations not later than 30 days after the date that the office upheld the protest. An amended application may not include additional areas or broadband serviceable locations not already included in the original application.
(h) If the office upholds a challenge and the applicant resubmits an application in accordance with subsection (g) of this section, the resubmitted application is not subject to further challenges.
(i) Notwithstanding section §16.36(e) of this subchapter, a broadband service provider who has not provided information requested by the office under Government Code, §490I.01061, may not submit a challenge of an application made under this subchapter.
§16.42.
(a) All award decisions shall be made at the sole discretion of the office and are not appealable or subject to protest.
(b) Grants for the deployment of broadband infrastructure awarded under this subchapter may only be used for capital expenses, purchase or lease of property, and other expenses, including backhaul and transport, that will facilitate the provision or adoption of broadband service.
(c) A grant recipient shall have 30 days from the date of award to negotiate and sign the grant agreement. The comptroller may extend the deadline to fully execute the grant agreement upon a showing of good cause by the grant recipient(s). If the grant agreement is not signed by the grant recipient and received by the office by the later of the 30th day after the award of the grant agreement or the extended deadline date, the office may rescind the award.
(d) For last-mile infrastructure projects, the grant recipient must make a reasonable effort to restore the private property affected by the project to the condition the property was in before the beginning of the project.
§16.46.
(a) Unless otherwise required by law, the office may prescribe all forms or other documents required to implement this subchapter and may require that the forms or other documents be submitted electronically.
(b) Any notice required by these rules to be sent by the office may be provided electronically and the office is entitled to rely on an email address provided by an applicant, grant recipient or other person, including a political subdivision or broadband service provider, for all purposes relating to notification. Applicants and grant recipients must provide an email address that is designated for receipt of notices from the office.
(c) If notice cannot be sent electronically, the office shall provide notice by regular or certified U.S. Mail and the office is entitled to rely on the mailing address currently on file for all purposes relating to notification.
(d) Service of notice by the office is complete and receipt is presumed on:
(1) the date the notice is sent, if sent before 5:00 p.m. by electronic mail;
(2) the date after the notice is sent, if sent after 5:00 p.m. by electronic mail; or
(3) three business days after the date it is placed in the mail, if sent by regular or certified U.S. Mail.
[(e) When multiple recipients receive notice under §16.34(a) of this subchapter resulting in more than one date of service as determined under subsection (d) of this section, the date that a broadband provider receives notice for the purpose of §16.34 of this subchapter is the latest service date for that notice.]
The agency certifies that legal counsel has reviewed the proposal and found it to be within the state agency's legal authority to adopt.
Filed with the Office of the Secretary of State on November 5, 2025.
TRD-202504005
Victoria North
General Counsel for Fiscal and Agency Affairs
Comptroller of Public Accounts
Earliest possible date of adoption: December 21, 2025
For further information, please call: (512) 475-2220
34 TAC §§16.37 - 16.39
The Comptroller of Public Accounts proposes to repeal §16.37, concerning overlapping applications or project areas, §16.38, concerning special rule for overlapping project areas in noncommercial applications, and §16.39, concerning application requirements.
The legislation enacted within the last four years that provides the statutory authority for these sections are Senate Bill 1238, 88th Legislature, R.S., 2023 and Senate Bill 1405, 89th Legislature, R.S., 2025.
The comptroller proposes to repeal §§16.37 - 16.39 since they are no longer needed as information related to application requirements will be in each respective notice of funds availability.
Brad Reynolds, Chief Revenue Estimator, has determined that during the first five years that the proposed repeal is in effect, the repeal: will not create or eliminate a government program; will not require the creation or elimination of employee positions; will not require an increase or decrease in future legislative appropriations to the agency; will not require an increase or decrease in fees paid to the agency; will not increase or decrease the number of individuals subject to the rules' applicability; and will not positively or adversely affect this state's economy.
Mr. Reynolds also has determined that the proposed repeal of the rules would have no fiscal impact on the state government, units of local government, or individuals. The proposed repeal of the rules coupled with the planned inclusion of information related to application requirements in each respective notification of funds availability, would benefit the public by eliminating unnecessary rules. There would be no anticipated economic cost to the public. The proposed repeal of the rules would have no fiscal impact on small businesses or rural communities.
You may submit comments on the proposal to Bryant Clayton, Director, Broadband Development Office, at broadband@cpa.texas.gov or at P.O. Box 13528, Austin, Texas 78711-3528. Any person required to comply with this proposal, or any other interested person, may submit information related to the cost, benefit, or effect of the proposal, including any applicable data, research, or analysis to the same mailing or email address. The comptroller must receive your comments or other information no later than 30 days from the date of publication of the proposal in the Texas Register.
The repeal is proposed under Government Code, §490I.0109, which permits the comptroller to adopt rules as necessary to implement Chapter 490I regarding the Texas Broadband Development Office.
The repeal implements Government Code, Chapter 490I.
§16.37.
§16.38.
§16.39.
The agency certifies that legal counsel has reviewed the proposal and found it to be within the state agency's legal authority to adopt.
Filed with the Office of the Secretary of State on November 5, 2025.
TRD-202504003
Victoria North
General Counsel for Fiscal and Agency Affairs
Comptroller of Public Accounts
Earliest possible date of adoption: December 21, 2025
For further information, please call: (512) 475-2220
SUBCHAPTER
F.
The Comptroller of Public Accounts proposes new §16.500, concerning definitions; §16.501, concerning applications; §16.502, concerning comptroller review; §16.503, concerning grant agreement; §16.504, concerning authorized uses of grant funds; §16.505, concerning reporting and compliance; and §16.506, concerning fiscal year 2026 application period. These new sections will be located in 34 Texas Administrative Code, Chapter 16, new Subchapter F, Rural Ambulance Service Grant Program.
The legislation enacted in the last four years that provides statutory authority is House Bill 3000, 89th Legislature, R.S., 2025. House Bill 3000 establishes a new grant program to provide certain rural counties financial assistance to purchase ground ambulances.
Section 16.500 provides definitions.
Section 16.501 describes the application process.
Section 16.502 describes comptroller review.
Section 16.503 describes the requirements for grant agreements.
Section 16.504 describes the authorized uses of grant funds and limitations on uses of grant funds.
Section 16.505 describes reporting requirements and available remedies for noncompliance.
Section 16.506 describes the Fiscal Year 2026 application period.
Brad Reynolds, Chief Revenue Estimator, has determined that during the first five years that the proposed new rules are in effect, the rules: will not create or eliminate a government program; will not require the creation or elimination of employee positions; will not require an increase or decrease in future legislative appropriations to the agency; will not require an increase or decrease in fees paid to the agency; will not increase or decrease the number of individuals subject to the rules' applicability; and will not positively or adversely affect this state's economy.
Mr. Reynolds also has determined that the proposed new rules would have no significant fiscal impact on the state government, units of local government, or individuals. The proposed new rules would benefit the public by disseminating and clarifying the requirements and application process of the Rural Ambulance Service Grant Program. There would be no significant anticipated economic cost to the public. The proposed new rules would have no fiscal impact on small businesses or rural communities.
You may submit comments on the proposal or information related to the cost, benefit, or effect of the proposal, including any applicable data, research or analysis, to Russell Gallahan, Manager, Local Government & Transparency, P.O. Box 13528 Austin, Texas 78711 or to the email address: ambulance.grants@cpa.texas.gov. The comptroller must receive your comments or other information no later than 30 days from the date of publication of the proposal in the Texas Register.
The new sections are proposed under Local Government Code, §130.914, which requires the comptroller to adopt rules to implement a new grant program to provide financial assistance to certain rural counties for ambulance service.
The new sections implement Local Government Code, §130.914.
§16.500.
The following words and terms, when used in this subchapter, have the following meanings, unless the context clearly indicates otherwise:
(1) Accessories--Equipment required for emergency medical service vehicles to provide treatment and transportation of adult, pediatric and neonatal patients as described in 25 TAC Chapter 157, Subchapter B, Emergency Medical Services Provider Licenses.
(2) Ambulance--A vehicle registered with the Texas Department of State Health Services as an emergency medical service vehicle excluding watercraft and air ambulances.
(3) Applicant--A qualified county that applies for a grant under Local Government Code, §130.914.
(4) Fiscal year--The twelve consecutive calendar months during which an applicant tracks its finances for budget and accounting purposes.
(5) Grant--A rural ambulance service grant awarded under Local Government Code, §130.914 and this subchapter.
(6) Grant agreement--An agreement between the comptroller and a grant recipient that governs the terms of a grant.
(7) Grant program--The rural ambulance service grant program established by Local Government Code, §130.914.
(8) Grant recipient--A qualified county that receives a grant under this subchapter.
(9) Per capita income--The per capita income based on the U.S. Bureau of Economic Analysis data for the year that correlates with the most recent federal census data.
(10) Per capita taxable property value--The per capita taxable property value based on the Texas Comptroller of Public Accounts data for the year that correlates with the most recent federal census data.
(11) Population--The population shown by the most recent federal decennial census.
(12) Qualified county--A county with a population of 68,750 or less.
(13) Qualified rural ambulance service provider--A private safety entity or public agency as those terms are defined by Health and Safety Code, §772.001, licensed by the Texas Department of State Health Services to provide emergency medical services and operating in a qualified county.
(14) Unemployment rate--The unemployment rate based on the Texas Workforce Commission data for the year that correlates with the most recent federal census data.
§16.501.
(a) Applicants must:
(1) apply using the comptroller's prescribed electronic form;
(2) provide information that the comptroller determines necessary to make an award decision; and
(3) certify compliance with the requirements of Local Government Code, §130.914 and this subchapter.
(b) The application period begins on the 60th day before the first day of the applicant's fiscal year and ends on the 30th day of the applicant's fiscal year.
(c) The county judge of the applicant must:
(1) electronically sign the application; and
(2) certify that all information in the application is true and correct.
(d) The applicant may propose, in order of preference, more than one qualified rural ambulance service provider that provides ground ambulance services to the qualified county.
(e) For each proposed qualified rural ambulance service provider that is a private entity, the applicant must submit with its application a written agreement between the qualified county and private entity requiring ground ambulance services be provided within the jurisdiction of the qualified county. The agreement must be in effect at the time of the application.
§16.502.
(a) The comptroller must review the application for completeness. The comptroller may require the applicant to submit additional information. The applicant must submit the required information within 14 calendar days of the request.
(b) The comptroller may reject an application without further consideration if:
(1) the application is incomplete or does not comply with this subchapter;
(2) the applicant fails to submit any additional information required under subsection (a) of this section within 14 calendar days of the request; or
(3) the application does not comply with this subchapter.
(c) The comptroller must evaluate the applicant's ability to otherwise obtain the money necessary to provide adequate ground ambulance services by using the following formula:
(1) the sum of the following:
(A) the Statewide Unemployment Rate, divided by the Qualified County Unemployment Rate, divided by 100;
(B) the Qualified County Per Capital Taxable Value, divided by the State Per Capital Taxable Value, divided by 100; and
(C) the Qualified County Per Capita Personal Income, divided by the State Per Capita Income, divided by 100;
(2) divided by 3.
(d) If the applicant submits more than one qualified rural ambulance service provider in its application, the comptroller will, upon any award, approve a single qualified rural ambulance service provider from the application.
(e) When making award decisions, the comptroller must consider:
(1) whether an applicant received a grant under this grant program in previous years;
(2) the applicant's ability to otherwise obtain the money necessary to provide adequate ground ambulance services as calculated under subsection (c) with priority given to lower scoring applications;
(3) whether all rural ambulance service providers identified in the application will receive other grant funds under this grant program during the same fiscal year; and
(4) the applicant's demonstrated compliance with other applicable laws or other state grant programs.
(f) Award and funding decisions are in the comptroller's sole discretion and are not appealable or subject to protest.
§16.503.
(a) Funding is contingent on legislative appropriations and may result in the inability to execute a grant agreement.
(b) The comptroller must notify the grant recipient of the award decision and provide a grant agreement to the applicant for signature within 30 days of that notification.
(c) A grant agreement must require the comptroller to disburse funds as soon as practicable and must require funds to be expended during the grant period.
(d) An official of the grant recipient who is authorized to bind the grant recipient must electronically sign the grant agreement.
§16.504.
(a) For grants awarded under Local Government Code, §130.914 and under this subchapter, grants may only be used for the state purpose of ensuring adequate ground ambulance services.
(b) The grant may only be used to purchase:
(1) additional ambulances, including necessary accessories and modifications;
(2) necessary accessories and modification to refurbish ambulances that the qualified county or its qualified rural ambulance service providers currently possesses; and
(3) necessary registration fees.
(c) Pre-award expenses are not allowable under a grant awarded under Local Government Code, §130.914 and this subchapter.
(d) Once grant funds are received, a grant recipient may not reduce funding to their qualified rural ambulance service provider for the following fiscal year.
§16.505.
(a) A grant recipient must submit an annual compliance report certifying compliance and detailing expenditures using the comptroller's electronic form. The grant recipient must provide evidence of continued ground ambulance services in its compliance report, including any changes to their qualified rural ambulance service provider.
(b) The comptroller may require supporting documentation regarding expenditures and any other information required to substantiate that grant funds are being used for the intended purpose and that the grant recipient complied with the grant agreement and this subchapter. The grant recipient must submit the documentation within 14 calendar days of the request. The authorized official is responsible for providing the required documentation.
(c) Grant recipients must comply with:
(1) the grant agreement terms and conditions;
(2) Local Government Code, §130.914 requirements; and
(3) all state or federal statutes, rules, regulations, or guidance applicable to the grant, including this subchapter.
(d) If the comptroller finds that a grant recipient failed to comply with any requirement described in subsection (c) of this section, the comptroller may:
(1) require the grant recipient to cure the failure to comply to the comptroller's satisfaction;
(2) require the grant recipient to return some or all of the grant;
(3) withhold funds from the current grant or future grants awarded to the recipient until the deficiency is corrected;
(4) disallow all or part of the cost of the purchase that does not comply;
(5) terminate the grant agreement in whole or in part;
(6) bar the grant recipient from future consideration for grants under this subchapter; or
(7) exercise any other legal remedies available at law.
(e) An official of the grant recipient who is authorized to bind the grant recipient must electronically sign the compliance report and must certify that all information in the compliance report is true and correct.
§16.506.
Notwithstanding anything to the contrary in this subchapter, the Fiscal Year 2026 application period for all applicants is the thirty-day period beginning on the later of January 1, 2026 or the date the application is first made available.
The agency certifies that legal counsel has reviewed the proposal and found it to be within the state agency's legal authority to adopt.
Filed with the Office of the Secretary of State on November 5, 2025.
TRD-202504006
Victoria North
General Counsel for Fiscal and Agency Affairs
Comptroller of Public Accounts
Earliest possible date of adoption: December 21, 2025
For further information, please call: (512) 475-2220