Home > 106th Congressional Bills > H.R. 3615 (rh2) To amend the Rural Electrification Act of 1936 to ensure improved access to the signals of local television stations by multichannel video providers to all households which desire such service in unserved and underserved rural areas by Dec...H.R. 3615 (rh2) To amend the Rural Electrification Act of 1936 to ensure improved access to the signals of local television stations by multichannel video providers to all households which desire such service in unserved and underserved rural areas by Dec...
106th CONGRESS
2d Session
H. R. 3615
[Report No. 106-508, Part I]
To amend the Rural Electrification Act of 1936 to ensure improved
access to the signals of local television stations by multichannel
video providers to all households which desire such service in unserved
and underserved rural areas by December 31, 2006.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
February 10, 2000
Mr. Goodlatte (for himself, Mr. Boucher, Mr. Baker, Mrs. Emerson, Mrs.
Capps, Mrs. Bono, Mr. Oberstar, Mr. Ewing, Mr. Gilchrest, Mr. Metcalf,
Mr. Quinn, Mr. Bass, Mr. Latham, Mr. Kildee, Mr. Phelps, Mr. McInnis,
Mr. Rahall, Mr. Buyer, Mr. Watkins, Mr. Frost, Mr. Baldacci, Mr. Goode,
Mr. Peterson of Minnesota, Mr. Hinchey, Mr. Boyd, Mr. Walden of Oregon,
Mr. Olver, Mr. Fletcher, Mr. Collins, Mr. Thornberry, Mrs. Cubin, Mr.
Nethercutt, Mr. Wicker, Mr. LaHood, Mr. Boehlert, Mr. Goodling, Mr.
Herger, Mr. Nussle, Mr. Radanovich, Mr. Ehrlich, Mr. Hastings of
Washington, Mr. Thune, Mr. Cooksey, Mr. Hilleary, Mrs. Fowler, Mr.
Bonilla, Mr. Ballenger, Mr. Skeen, Mr. Shimkus, Mr. Pickering, Mr.
Aderholt, Mr. Sherwood, Mr. Upton, Mr. Hayes, Mr. Peterson of
Pennsylvania, Mr. Smith of Texas, Mr. Vitter, Mr. Jenkins, Mr. Tauzin,
Mr. Riley, Mr. Canady of Florida, Mr. Bartlett of Maryland, Mr.
Isakson, Mr. Chambliss, Mr. Barrett of Nebraska, Mr. Ganske, Mr.
Bishop, Mr. Thomas, Mr. Oxley, Mr. Goss, Mr. Jones of North Carolina,
Mr. Doolittle, Mr. Pombo, Mr. Wamp, Mr. Duncan, Mr. Norwood, Mrs.
Chenoweth-Hage, Mr. Davis of Virginia, Mr. Dickey, Mr. Ehlers, Mr.
Lewis of Kentucky, Mr. Weller, Mr. Foley, Mr. Hutchinson, Mr. Smith of
Michigan, Mr. Gekas, Mr. Houghton, Mr. Reynolds, Mr. Portman, Mr.
Traficant, Mr. Schaffer, Mr. Thompson of California, Mr. Minge, Mrs.
Clayton, Mr. Shows, Mr. Sisisky, Mr. Bryant, Mr. Walsh, Mr. McHugh,
Mrs. Johnson of Connecticut, Mr. Bereuter, Mr. Rogers, Mr. Farr of
California, Mr. Kind, and Mr. Hill of Montana) introduced the following
bill; which was referred to the Committee on Agriculture, and in
addition to the Committees on Commerce, and the Judiciary, for a period
to be subsequently determined by the Speaker, in each case for
consideration of such provisions as fall within the jurisdiction of the
committee concerned
March 1, 2000
Additional sponsors: Mr. Sandlin, Mr. Pomeroy, Mr. Berry, Mr. Moran of
Kansas, Mr. Moran of Virginia, Mr. Cramer, Mr. Lucas of Oklahoma, Mr.
Gutknecht, Mr. Simpson, Mr. Stenholm, Mr. Holden, Mr. Boswell, Mr.
Klink, and Mr. Coble
March 1, 2000
Reported from the Committee on Agriculture with an amendment
[Strike out all after the enacting clause and insert the part printed
in italic]
March 1, 2000
Referral to the Committees on Commerce and the Judiciary extended for a
period ending not later than March 31, 2000
[For text of introduced bill, see copy of bill as introduced on
February 10, 2000]
_______________________________________________________________________
A BILL
To amend the Rural Electrification Act of 1936 to ensure improved
access to the signals of local television stations by multichannel
video providers to all households which desire such service in unserved
and underserved rural areas by December 31, 2006.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Rural Local Broadcast Signal Act''.
SEC. 2. FINDINGS.
Congress makes the following findings:
(1) In 1936, most of the rural United States did not have
access to electrical service enjoyed by the rest of the United
States, and this lack of electrical service inhibited economic
development in the rural areas of the United States.
(2) In response to this lack of service, Congress enacted
the Rural Electrification Act of 1936 (also known as the
Norris-Rayburn Rural Electrification Act) which established the
Rural Electrification Administration to ensure that all
Americans have access to electrical service and to promote
rural development.
(3) The program under the Rural Electrification Act of 1936
has successfully brought electricity to all parts of the rural
United States and has stimulated rural development throughout
the United States.
(4) In 1949, most of the rural United States did not have
access to telephone service enjoyed by the rest of the United
States, and this lack of telephone service inhibited economic
development in the rural areas of the United States.
(5) In response to this lack of service, Congress amended
the Rural Electrification Act of 1936 to assure that the rural
United States has access to telecommunications services,
including telephone services, distance learning, and
telemedicine in order to promote rural development.
(6) The programs under these amendments have successfully
brought telecommunications to all parts of the United States
and has stimulated rural development throughout the United
States.
(7) Public Law 93-32 amended the Rural Electrification Act
of 1936 to establish a revolving fund for insured and
guaranteed loans.
(8) The reorganization of the Department of Agriculture by
Public Law 103-354 created the Rural Utilities Service (RUS)
within the Department of Agriculture and assigned it the
responsibility for administering programs under the Rural
Electrification Act of 1936.
(9) The Rural Utilities Service now manages a portfolio of
federally-guaranteed and direct loans in excess of
$42,000,000,000.
(10) The Rural Utilities Service has granted loans for the
purpose of telecommunications services to more than 800
borrowers, including telephone and electricity cooperatives, in
all States of the United States.
(11) Local television coverage is vitally important for
rural development efforts.
(12) Local television programming broadcasts crop reports,
local news, weather reports, public service announcements, and
advertisements by local businesses, all of which are important
for rural development.
(13) In today's age of modern communications, rural
communities often receive the majority of their information
from satellite platforms.
(14) The rest of the United States, including most of the
rural United States, is not able to receive local television
signals via satellite.
(15) Without access to local television signals, the
development of the rural United States is greatly inhibited.
(16) Just as important public purposes were served by
bringing electricity to the rural United States and then by
bringing telephone service to the rural United States, so the
United States would be served by ensuring that the rural United
States can receive local television signals via satellite.
(17) It is in the public interest that the Rural Utilities
Service of the Department of Agriculture utilize existing and
new loan guarantee programs to promote rural development by
ensuring that the rural United States has access to the signals
of local television stations by multichannel video providers.
SEC. 3. RURAL LOCAL TELEVISION SIGNALS.
The Rural Electrification Act of 1936 (7 U.S.C. 901 et seq.) is
amended by adding at the end the following:
``TITLE VI--RURAL LOCAL TELEVISION SIGNALS
``SEC. 601. DEFINITIONS.
``In this title:
``(1) Administrator.--The term `Administrator' means the
Administrator of the Rural Utilities Service.
``(2) Affiliate.--The term `affiliate' means any person or
entity that controls, or is controlled by, or is under common
control with, another person or entity.
``(3) Borrower.--The term `borrower' means any person or
entity receiving a loan guarantee under this title.
``(4) Cost.--
``(A) In general.--The term `cost' means the
estimated long-term cost to the Government of a loan
guarantee or modification thereof, calculated on a net
present value basis, excluding administrative costs and
any incidental effects on governmental receipts or
outlays.
``(B) Loan guarantees.--For purposes of this
paragraph the cost of a loan guarantee--
``(i) shall be the net present value, at
the time when the guaranteed loan is disbursed,
of the estimated cash flows of--
``(I) payments by the Government to
cover defaults and delinquencies,
interest subsidies, or other payments;
and
``(II) payments to the Government,
including origination and other fees,
penalties, and recoveries; and
``(ii) shall include the effects of changes
in loan terms resulting from the exercise by
the guaranteed lender of an option included in
the loan guarantee contract, or by the borrower
of an option included in the guaranteed loan
contract.
``(C) Cost of modification.--The cost of the
modification shall be the difference between the
current estimate of the net present value of the
remaining cash flows under the terms of a loan
guarantee contract, and the current estimate of the net
present value of the remaining cash flows under the
terms of the contract, as modified.
``(D) Discount rate.--In estimating net present
value, the discount rate shall be the average interest
rate on marketable Treasury securities of similar
maturity to the cash flows of the guarantee for which
the estimate is being made.
``(E) Fiscal year assumptions.--When funds of a
loan guarantee under this title are obligated, the
estimated cost shall be based on the current
assumptions, adjusted to incorporate the terms of the
loan contract, for the fiscal year in which the funds
are obligated.
``(5) Current.--The term `current' has the meaning given
that term in section 250(c)(9) of the Balanced Budget and
Emergency Deficit Control Act of 1985.
``(6) Designated market area.--The term `designated market
area' has the meaning given that term in section 122(j) of
title 17, United States Code.
``(7) Loan guarantee.--The term `loan guarantee' means any
guarantee, insurance, or other pledge with respect to the
payment of all or part of the principal or interest on any debt
obligation of a non-Federal borrower to the Federal Financing
Bank or a non-Federal lender, but does not include the
insurance of deposits, shares, or other withdrawable accounts
in financial institutions.
``(8) Modification.--The term `modification' means any
Government action that alters the estimated cost of an
outstanding loan guarantee (or loan guarantee commitment) from
the current estimate of cash flows, including the sale of loan
assets, with or without recourse, and the purchase of
guaranteed loans.
``(9) Common terms.--Except as provided in paragraphs (1)
through (9), any term used in this title that is defined in the
Communications Act of 1934 (47 U.S.C. 151 et seq.) has the
meaning given the term in that Act.
``SEC. 602. LOAN GUARANTEES.
``(a) Purpose.--The purpose of this title is to enable the
Administrator to provide such loan guarantees as are necessary to
ensure improved access to the signals of local television stations by
multichannel video providers to all households which desire such
service in unserved and underserved rural markets by December 31, 2006.
``(b) Assistance to Borrowers.--Subject to the appropriations
limitation under subsection (c)(2), the Administrator may provide loan
guarantees to borrowers to finance projects to provide local television
broadcast signals by providers of multichannel video services including
direct broadcast satellite licensees and licensees of multichannel
multipoint distribution systems, to areas that do not receive local
television broadcast signals over commercial for-profit direct-to-home
satellite distribution systems. A borrower that receives a loan
guarantee under this title may not transfer any part of the proceeds of
the monies from the loans guaranteed under this program to an affiliate
of the borrower.
``(c) Underwriting Criteria; Prerequisites.--
``(1) In general.--The Administrator shall administer the
underwriting criteria developed under subsection (f)(1) to
determine which loans are eligible for a guarantee under this
title.
``(2) Authority to make loan guarantees.--The Administrator
shall be authorized to guarantee loans under this title only to
the extent provided for in advance by appropriations Acts.
``(3) Prerequisites.--In addition to meeting the
underwriting criteria under paragraph (1), a loan is not
eligible for a loan guarantee under this title unless--
``(A) the loan is made to finance the acquisition,
improvement, enhancement, construction, deployment,
launch, or rehabilitation of the means, including
spectrum rights, by which local television broadcast
signals will be delivered to an area not receiving such
signals over commercial for-profit direct-to-home
satellite distribution systems;
``(B) the proceeds of the loan will not be used for
operating expenses;
``(C) the total amount of all such loans may not
exceed in the aggregate $1,250,000,000;
``(D) the loan does not exceed $100,000,000, except
that 1 loan under this title may exceed $100,000,000,
but shall not exceed $625,000,000;
``(E) the loan bears interest and penalties which,
in the Administrator's judgment, are not unreasonable,
taking into consideration the prevailing interest rates
and customary fees incurred under similar obligations
in the private capital market; and
``(F) the Administrator determines that taking into
account the practices of the private capital markets
with respect to the financing of similar projects, the
security of the loan is adequate.
``(4) Additional criteria.--In addition to the requirements
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