7 U.S.C. § 950bb : US Code - Section 950BB: Access to broadband telecommunications services in rural areas

Search 7 U.S.C. § 950bb : US Code - Section 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 service to originate and receive high-quality
voice, data, graphics, and video.
(2) Eligible rural community
The term "eligible rural community" means any area of the
United States that is not contained in an incorporated city or
town with a population in excess of 20,000 inhabitants.
(c) Loans and loan guarantees
(1) In general
The Secretary shall make or guarantee loans to eligible
entities described in subsection (d) of this section 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) of this
section.
(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) of this section shall - 
(1) bear interest at an annual rate of, as determined by the
Secretary - 
(A) in the case of a direct loan - 
(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 chapter, the proceeds
of any loan made or guaranteed by the Secretary under this chapter
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 chapter 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 after May 13, 2002, and biennially
thereafter, the Administrator shall submit to Congress a report
that - 
(1) describes how the Administrator determines under subsection
(a)(1) of this section 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
1109(a)(2)(B) of title 47.
(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 - 
(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.