Sec. 6103 - Farm Bill

4

Excerpts from the Farm Security and Rural Investment Act of 2002

[[Page 133]]

FARM SECURITY AND RURAL INVESTMENT ACT OF 2002

[[Page 116 STAT. 134]]

Public Law 107-171

107th Congress

SEC. 6103. ENHANCEMENT OF ACCESS TO BROADBAND SERVICE IN RURAL AREAS.

(a) In General.--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 BROADBAND ACCESS

``SEC. 601. <<NOTE: Loans. 7 USC 950bb.>> ACCESS TO BROADBAND

TELECOMMUNICATIONS SERVICES IN RURAL AREAS.

``(a) Purpose.--The purpose of this section is to provide loans and

loan guarantees to provide funds for the costs of the construction,

improvement, and acquisition of facilities and equipment for broadband

service in eligible rural communities.

``(b) Definitions.--In this section:

``(1) Broadband service.--The term `broadband service' means

any technology identified by the Secretary as having the

capacity to transmit data to enable a subscriber to the

[[Page 116 STAT. 416]]

service to originate and receive high-quality voice, data,

graphics, and video.

``(2) Eligible rural community.--The term `eligible rural

community' means any incorporated or unincorporated place that--

``(A) has not more than 20,000 inhabitants, based on

the most recent available population statistics of the

Bureau of the Census; and

``(B) is not located in an area designated as a

standard metropolitan statistical area.

``(c) Loans and Loan Guarantees.--

``(1) In general.--The Secretary shall make or guarantee

loans to eligible entities described in subsection (d) to

provide funds for the construction, improvement, or acquisition

of facilities and equipment for the provision of broadband

service in eligible rural communities.

``(2) Priority.--In making or guaranteeing loans under

paragraph (1), the Secretary shall give priority to eligible

rural communities in which broadband service is not available to

residential customers.

``(d) Eligible Entities.--

``(1) In general.--To be eligible to obtain a loan or loan

guarantee under this section, an entity shall--

``(A) have the ability to furnish, improve, or

extend a broadband service to an eligible rural

community; and

``(B) submit to the Secretary a proposal for a

project that meets the requirements of this section.

``(2) State and local governments.--A State or local

government (including any agency, subdivision, or

instrumentality thereof (including consortia thereof)) shall be

eligible for a loan or loan guarantee under this section to

provide broadband services to an eligible rural community only

if, not later than 90 days after the Administrator has

promulgated regulations to carry out this section, no other

eligible entity is already offering, or has committed to offer,

broadband services to the eligible rural community.

``(3) Subscriber lines.--An entity shall not be eligible to

obtain a loan or loan guarantee under this section if the entity

serves more than 2 percent of the telephone subscriber lines

installed in the aggregate in the United States.

``(e) Broadband Service.--The Secretary shall, from time to time as

advances in technology warrant, review and recommend modifications of

rate-of-data transmission criteria for purposes of the identification of

broadband service technologies under subsection (b)(1).

``(f) Technological Neutrality.--For purposes of determining whether

or not to make a loan or loan guarantee for a project under this

section, the Secretary shall use criteria that are technologically

neutral.

``(g) Terms and Conditions for Loans and Loan Guarantees.--

Notwithstanding any other provision of law, a loan or loan guarantee

under subsection (c) shall--

``(1) bear interest at an annual rate of, as determined by

the Secretary--

``(A) in the case of a direct loan--

[[Page 116 STAT. 417]]

``(i) the cost of borrowing to the Department

of the Treasury for obligations of comparable

maturity; or

``(ii) 4 percent; and

``(B) in the case of a guaranteed loan, the current

applicable market rate for a loan of comparable

maturity; and

``(2) have a term not to exceed the useful life of the

assets constructed, improved, or acquired with the proceeds of

the loan or extension of credit.

``(h) Use of Loan Proceeds to Refinance Loans for Deployment of

Broadband Service.--Notwithstanding any other provision of this Act, the

proceeds of any loan made or guaranteed by the Secretary under this Act

may be used by the recipient of the loan for the purpose of refinancing

an outstanding obligation of the recipient on another telecommunications

loan made under this Act if the use of the proceeds for that purpose

will further the construction, improvement, or acquisition of facilities

and equipment for the provision of broadband service in eligible rural

communities.

``(i) Reports.--Not later than 1 year <<NOTE: Deadline.>> after the

date of enactment of this section, and biennially thereafter, the

Administrator shall submit to Congress a report that--

``(1) describes how the Administrator determines under

subsection (a)(1) that a service enables a subscriber to

originate and receive high-quality voice, data, graphics, and

video; and

``(2) provides a detailed list of services that have been

granted assistance under this section.

``(j) Funding.--

``(1) In general.--Notwithstanding any other provision of

law, of the funds of the Commodity Credit Corporation, the

Secretary shall make available to carry out this section--

``(A) $20,000,000 for each of fiscal years 2002

through 2005, to remain available until expended; and

``(B) $10,000,000 for each of fiscal years 2006 and

2007, to remain available until expended.

``(2) Television funds.--

``(A) In general.--The Secretary shall be entitled

to receive, shall accept, and shall use to carry out

this section, without further appropriation any funds

made available under section 1011(a)(2)(B) of the

Launching Our Communities' Access to Local Television

Act of 2000 (47 U.S.C. 1109(a)(2)(B)).

``(B) Use of television funds.--The Secretary shall

use any funds received under subparagraph (A) in equal

amounts for each remaining fiscal year on receipt of the

funds (including the fiscal year of receipt) through

fiscal year 2007.

``(3) Authorization of appropriations.--In addition to funds

otherwise made available under this subsection, there are

authorized to be appropriated such sums as necessary to carry

out this section for each of fiscal years 2003 through 2007.

``(4) Allocation of funds.--

``(A) In general.--From amounts made available for

each fiscal year under this subsection, the Secretary

shall--

[[Page 116 STAT. 418]]

``(i) establish a national reserve for loans

and loan guarantees to eligible entities in States

under this section; and

``(ii) allocate amounts in the reserve to each

State for each fiscal year for loans and loan

guarantees to eligible entities in the State.

``(B) Amount.--The amount of an allocation made to a

State for a fiscal year under subparagraph (A) shall

bear the same ratio to the amount of allocations made

for all States for the fiscal year as the number of

communities with a population of 2,500 inhabitants or

less in the State bears to the number of communities

with a population of 2,500 inhabitants or less in all

States, as determined on the basis of the latest

available census.

``(C) Unobligated amounts.--Any amounts in the

reserve established for a State for a fiscal year under

subparagraph (B) that are not obligated by April 1 of

the fiscal year shall be available to the Secretary to

make loans and loan guarantees under this section to

eligible entities in any State, as determined by the

Secretary.

``(k) Termination of Authority.--No loan or loan guarantee may be

made under this section after September 30, 2007.''.

(b) <<NOTE: 7 USC 950bb note.>> Regulations.--

(1) In <<NOTE: Deadline.>> general.--Not later than 180 days

after the date of enactment of this Act, the Secretary of

Agriculture shall promulgate such regulations as are necessary

to implement the amendment made by subsection (a).

(2) Procedure.--The promulgation of the regulations shall be

made without regard to--

(A) the notice and comment provisions of section 553

of title 5, United States Code;

(B) the Statement of Policy of the Secretary of

Agriculture effective July 24, 1971 (36 Fed. Reg.

13804), relating to notices of proposed rulemaking and

public participation in rulemaking; and

(C) chapter 35 of title 44, United States Code

(commonly known as the ``Paperwork Reduction Act'').

(3) Congressional review of agency rulemaking.--In carrying

out this subsection, the Secretary shall use the authority

provided under section 808 of title 5, United States Code.