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106th CONGRESS
2d Session
S. 3114
To provide loans for the improvement of telecommunications services on
Indian reservations
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
September 26 (legislative day, September 22), 2000
Mr. Baucus (for himself and Mr. Daschle) introduced the following bill;
which was read twice and referred to the Committee on Indian Affairs
_______________________________________________________________________
A BILL
To provide loans for the improvement of telecommunications services on
Indian reservations
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 ``Native American Telecommunications
Improvement and Value Enhancement Act''.
SEC. 2. FINDINGS.
Congress finds that--
(1) the average telephone penetration rate for Native
Americans on reservations is 47 percent (with some reservations
as low as 16 percent) as compared to 94 percent for the entire
United States;
(2) barriers to telephone penetration on Native American
reservations include poverty (the per capita income for Native
Americans is $8,234), the high cost of service due to sparse
population, and geographic challenges; and
(3) without telephone service, individuals cannot obtain
access to medical care in an emergency (911 service), cannot
reach prospective employers quickly and easily, and cannot take
advantage of the educational, medical, and commercial
opportunities offered by the Internet.
SEC. 3. ESTABLISHMENT OF LOAN PROGRAM.
The Rural Electrification Act of 1936 (7 U.S.C. 901 et seq.) is
amended by adding at the end the following:
``TITLE VI--MISCELLANEOUS PROVISIONS
``SEC. 601. NATIVE AMERICAN TELECOMMUNICATIONS IMPROVEMENT AND VALUE
ENHANCEMENT LOAN PROGRAM.
``(a) In General.--The Secretary, acting through the Rural
Utilities Service, shall establish a program to make loans to eligible
Indian tribes (or tribal entities that have entered into a partnership
with a telecommunications carrier) to enable such tribes to provide for
the development of telecommunications infrastructure (wireline or
wireless) on lands under the jurisdiction of the tribe involved.
``(b) Eligibility.--To be eligible to receive a loan under the
program established under subsection (a) an Indian tribe shall--
``(1)(A) be a member of a cooperative that is made up of
Federally-recognized Indian tribes specifically formed for the
purpose of providing telecommunications services to members of
the tribes involved; or
``(B) be a Federally-recognized Indian tribe that has
entered into an agreement with a telecommunications carrier for
the purpose of obtaining loans under this section to improve
the telecommunications infrastructure on lands under the
jurisdiction of the tribe involved; and
``(2) prepare and submit to the Secretary an application at
such time, in such manner, and containing such information as
the Secretary may require, including a telecommunications plan
that meets the requirements of section 305(d)(3)(B), including
an assurance that any amounts will only be used to provide
service to unserved or underserved areas.
``(c) Revolving Loan Fund.--
``(1) In general.--There is hereby established in the
Treasury of the United States a fund, to be known as the Native
American Telecommunications Improvement Revolving Fund
(referred to as the `Fund'), consisting of--
``(A) all notes, bonds, obligations, liens,
mortgages, and property delivered or assigned to the
Secretary pursuant to loans made under this section,
and all proceeds from the sales of such notes, bonds,
obligations, liens, mortgages, and property, which
shall be transferred to and be assets of the Fund;
``(B) all collections of principal and interest
received on a loan made under subsection (a), which
shall be paid into and be assets of the Fund; and
``(C) all amounts appropriated to the Fund under
subsection (f).
``(2) Use.--The assets of the Fund shall be used--
``(A) to make loans under subsection (a) and to
otherwise administer the loan program under this
section; and
``(B) to award grants as provided for in subsection
(e).
``(d) Interest.--The interest rate for any loan made under
subsection (a) shall not exceed an annual rate of--
``(1) two percent for loans made to tribes where the per
capita income of the area to be served under the loan is 25
percent or less of the per capita income of the entire United
States, based on the most recent census;
``(2) three percent for loans made to tribes where the per
capita income of the area to be served under the loan is at
least 26 percent but less than 34 percent of the per capita
income of the entire United States, based on the most recent
census;
``(3) four percent for loans made to tribes where the per
capita income of the area to be served under the loan is at
least 34 percent but less than 51 percent or less of the per
capita income of the entire United States, based on the most
recent census; or
``(4) five percent for loans made to tribes--
``(A) where the per capita income of the area to be
served under the loan is at least 51 percent of the per
capita income of the entire United States, based on the
most recent census; or
``(B) that otherwise meet the definition of
hardship as contained in the Rural Utilities Service
regulations in effect on the date of enactment of this
Act.
``(e) Grants.--
``(1) In general.--The Secretary shall award grants to
Indian tribes to enable such tribes to conduct feasibility
studies with respect to tribal telecommunications projects.
``(2) Limitation.--The amount of a grant awarded under
paragraph (1) shall not exceed $200,000.
``(3) Funding.--Of the amount appropriated under subsection
(f) and transferred to the Fund--
``(A) $2,000,000 shall be used to award grants
under this section in fiscal year 2001; and
``(B) an amount determined appropriate by the
Secretary from the interest derived from loans made
under this section shall be used to award grants under
this section in subsequent fiscal years.
``(f) Authorization of Appropriations.--There is authorized to be
appropriated $1,000,000,000 to carry out this section.
``(g) Definitions.--In this section:
``(1) Federally-recognized indian tribe.--The term
`Federally-recognized Indian tribe' means any Indian or Alaska
Native tribe, band, nation, pueblo, village or community that
is acknowledged by the Federal Government to constitute a
government-to-government relationship with the United States
and to be eligible for the programs and services established by
the United States for Indians.
``(2) Telecommunications carrier.--The term
`telecommunications carriers' means any provider of
telecommunications services.
``(h) Termination.--The program established under this section
shall terminate on the earlier of--
``(1) the date that is 10 years after the date on which the
first loan is made under the program; or
``(2) the date on which the Secretary determines that the
telecommunications penetration rate is at least 90 percent of
all households on reservation lands.''.
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