[Congressional Bills 106th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5069 Introduced in House (IH)]







106th CONGRESS
  2d Session
                                H. R. 5069

 To encourage the deployment of broadband telecommunications in rural 
                    America, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             July 27, 2000

Mr. Minge (for himself, Ms. Hooley of Oregon, Mr. Baird, Mr. Rodriguez, 
   Mr. Udall of New Mexico, Mr. Boswell, Ms. Kaptur, Mr. Olver, Mr. 
Bishop, Mr. Lucas of Kentucky, Mr. Thompson of California, Mr. DeFazio, 
 and Ms. Baldwin) introduced the following bill; which was referred to 
 the Committee on Commerce, and in addition to the Committees on Ways 
and Means, and Agriculture, 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

_______________________________________________________________________

                                 A BILL


 
 To encourage the deployment of broadband telecommunications in rural 
                    America, and for other purposes.

    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 ``Comprehensive Rural 
Telecommunications Act''.

                        TITLE I--RURAL TELEWORK

SEC. 101. FINDINGS AND PURPOSES.

    (a) Findings.--Congress finds that--
            (1) many rural communities and Indian reservations have not 
        benefited from the historic economic expansion in recent years, 
        and high levels of unemployment and underemployment persist in 
        the rural communities and reservations;
            (2) many economic opportunities, especially in information 
        technology fields, are located away from many rural communities 
        and reservations;
            (3) the United States has a significant and growing need 
        for skilled information technology workers;
            (4) unemployed and underemployed rural employees represent 
        a potential workforce to fill information technology jobs;
            (5) teleworking allows rural employees to perform skill 
        intensive information technology jobs from their communities 
        for firms located outside rural communities; and
            (6) employing a rural teleworkforce in information 
        technology fields will require--
                    (A) employers that are willing to hire rural 
                residents or contract for work to be performed in rural 
                communities;
                    (B) recruitment and training of rural residents 
                appropriate for work in information technology fields;
                    (C) means of connecting employers with employees 
                through advanced telecommunications services; and
                    (D) innovative approaches and collaborative models 
                to create rural technology business opportunities and 
                facilitate the employment of rural individuals.
    (b) Purposes.--The purposes of this Act are--
            (1) to authorize the Secretary of Agriculture to make 
        competitive grants to establish National Centers for Distance 
        Working in rural areas to provide assistance to individuals in 
        rural communities to support the use of teleworking in 
        information technology fields;
            (2) to promote teleworking arrangements, small electronic 
        business development, and creation of information technology 
        jobs in rural areas for the purpose of creating sustainable 
        economic opportunities in rural communities;
            (3) to promote the practice of teleworking to information 
        technology jobs among rural, urban, and suburban residents, 
        Indian tribes, job training and workforce development 
        providers, educators, and employers;
            (4) to meet the needs of information technology and other 
        industries for skilled employees by accelerating the training 
        and hiring of rural employees to fill existing and future jobs 
        from rural communities and Indian reservations;
            (5) to promote teleworking and small electronic business as 
        sustainable income sources for rural communities and Indian 
        tribes; and
            (6) to study, collect information, and develop best 
        practices for rural teleworking employment practices.

SEC. 102. NATIONAL CENTERS FOR DISTANCE WORKING PROGRAM.

    Subtitle D of the Consolidated Farm and Rural Development Act (7 
U.S.C. 1981 et seq.) is amended by adding at the end the following:

``SEC. 376. NATIONAL CENTERS FOR DISTANCE WORKING PROGRAM.

    ``(a) Definitions.--In this section:
            ``(1) Center.--The term `Center' means a National Center 
        for Distance Working established under subsection (b) that 
        receives a grant under this section.
            ``(2) Eligible organization.--The term `eligible 
        organization' means a nonprofit entity, an educational 
        institution, a tribal government, or any other organization 
        that meets the requirements of this section and such other 
        requirements as are established by the Secretary.
            ``(3) Information technology.--The term `information 
        technology' means any equipment, or interconnected system or 
        subsystem of equipment, that is used in the automatic 
        acquisition, storage, manipulation, management, movement, 
        control, display, switching, interchange, transmission, or 
        reception of data or information, including a computer, 
        ancillary equipment, software, firmware and similar procedures, 
        services (including support services), and related resources.
            ``(4) Rural area.--The terms `rural' and `rural area' have 
        the meaning given the terms in section 381A.
            ``(5) Secretary.--The term `Secretary' means the Secretary, 
        acting through the Administrator of the Rural Utility Service.
            ``(6) Teleworking.--The term `teleworking' means the use of 
        telecommunications to perform work functions over a distance 
        and to reduce or eliminate the need to perform work at a 
traditional worksite.
    ``(b) Establishment.--
            ``(1) In general.--The Secretary shall establish a National 
        Centers for Distance Working Program under which the Secretary 
        shall make competitive grants to eligible organizations to pay 
        the Federal share of the cost of establishing National Centers 
        for Distance Working in rural areas to conduct projects in 
        accordance with subsection (c).
            ``(2) Eligible organization.--The Secretary shall establish 
        criteria that an organization must meet to be eligible to 
        receive a grant under this section.
    ``(c) Projects.--A Center shall use a grant received under this 
section to conduct a 5-year project--
            ``(1) to provide training, referral, assessment, and 
        employment-related services and assistance to individuals in 
        rural communities and Indian tribes to support the use of 
        teleworking in information technology fields, including 
        services and assistance related to high technology training, 
        telecommunications infrastructure, capital equipment, job 
        placement services, and other means of promoting teleworking;
            ``(2) to identify skills that are needed by the business 
        community and that will enable trainees to secure employment 
        after the completion of training;
            ``(3) to recruit employers for rural individuals and 
        residents of Indian reservations;
            ``(4) to provide for high-speed communications between the 
        individuals in the targeted rural community or reservation and 
        employers that carry out information technology work that is 
        suitable for teleworking;
            ``(5) to provide for access to or ownership of the 
        facilities, hardware, software, and other equipment necessary 
        to perform information technology jobs; and
            ``(6) to perform such other functions as the Secretary 
        considers appropriate.
    ``(d) Eligibility Criteria.--
            ``(1) Application and plan.--As a condition of receiving a 
        grant under this section for use with respect to a rural area, 
        an organization shall submit to the Secretary, and obtain the 
        approval of the Secretary of, an application and 5-year plan 
        for the use of the grant to carry out a project described in 
        subsection (c), including a description of--
                    ``(A) the businesses and employers that will 
                provide employment opportunities in the rural area;
                    ``(B) fundraising strategies;
                    ``(C) training and training delivery methods to be 
                employed;
                    ``(D) the rural community of individuals to be 
                targeted to receive assistance;
                    ``(E) any support from State and local governments 
                and other non-Federal sources; and
                    ``(F) outreach activities to be carried out to 
                reach potential information technology employers.
            ``(2) Non-federal share.--
                    ``(A) In general.--As a condition of receiving a 
                grant under this section, an organization shall agree 
                to obtain, after the application of the organization 
                has been approved and notice of award has been issued, 
                contributions from non-Federal sources that are equal 
                to--
                            ``(i) during each of the first, second, and 
                        third years of a project, 1 non-Federal dollar 
                        for each 2 Federal dollars provided under the 
                        grant; and
                            ``(ii) during each of the fourth and fifth 
                        years of the project, 1 non-Federal dollar for 
                        each Federal dollar provided under the grant.
                    ``(B) Indian tribes.--Notwithstanding subparagraph 
                (A), an Indian tribe may use Federal funds made 
                available to the tribe for self-governance to pay the 
                non-Federal contributions required under subparagraph 
                (A).
                    ``(C) Form.--The non-Federal contributions required 
                under subparagraph (A) may be in the form of in-kind 
                contributions, including office equipment, office 
                space, and services.
    ``(e) Selection Criteria.--
            ``(1) In general.--The Secretary shall--
                    ``(A) establish criteria for the selection of 
                eligible organizations to receive grants under this 
                section; and
                    ``(B) evaluate, rank, and select eligible 
                organizations on the basis of the selection criteria.
            ``(2) Factors.--The selection criteria established under 
        paragraph (1) shall include--
                    ``(A) the experience of the eligible organization 
                in conducting programs or ongoing efforts designed to 
                improve or upgrade the skills of rural employees or 
                members of Indian tribes;
                    ``(B) the ability of the eligible organization to 
                initiate a project within a minimum period of time;
                    ``(C) the ability and experience of the eligible 
                organization in providing training to rural individuals 
                who are economically disadvantaged or who face 
                significant barriers to employment;
                    ``(D) the ability and experience of the eligible 
                organization in conducting information technology skill 
                training;
                    ``(E) the degree to which the eligible organization 
                has entered into partnerships or contracts with local, 
                tribal, and State governments, community-based 
                organizations, and prospective employers to provide 
                training, employment, and supportive services;
                    ``(F) the ability and experience of the eligible 
                organization in providing job placement for rural 
                employees with employers that are suitable for 
                teleworking;
                    ``(G) the computer and telecommunications equipment 
                that the eligible organization has or expects to 
possess or use under contract on initiation of the project; and
                    ``(H) the means the applicant proposes, such as 
                high-speed Internet access, to allow communication 
                between rural employees and employers.
            ``(3) Publication.--The Secretary shall--
                    ``(A) publish the selection criteria established 
                under this subsection in the Federal Register; and
                    ``(B) include a description of the selection 
                criteria in any solicitation for applications for 
                grants made by the Secretary.
    ``(f) Studies of Teleworking.--
            ``(1) In general.--To promote the development of 
        teleworking in rural areas, the Secretary may make grants to 
        entities to conduct research on economic, operational, social, 
        and policy issues relating to teleworking in rural areas, 
        including the development of best practices for businesses that 
        employ teleworkers.
            ``(2) Limitation.--The Secretary shall use not more than 
        $1,000,000 of funds made available for a fiscal year under 
        subsection (g) to carry out this subsection.
    ``(g) Authorization of Appropriation.--There is authorized to be 
appropriated to carry out this section $11,000,000 for each fiscal 
year.''.

            TITLE II--RURAL TELECOMMUNICATIONS MODERNIZATION

SEC. 201. CREDIT FOR TELECOMMUNICATIONS FACILITIES DEVELOPMENT IN RURAL 
              AREAS.

    (a) In General.--Section 46(a) of the Internal Revenue Code of 1986 
(relating to amount of investment credit) is amended by striking 
``and'' at the end of paragraph (2), by striking the period at the end 
of paragraph (3) and inserting ``, and'', and by adding at the end the 
following:
            ``(4) the rural telecommunications facilities credit.''
    (b) Amount of Credit.--Subpart E of part IV of subchapter A of 
chapter 1 of the Internal Revenue Code of 1986 (relating to rules for 
computing investment credit) is amended by inserting after section 47 
the following:

``SEC. 47A. RURAL TELECOMMUNICATIONS FACILITIES CREDIT.

    ``(a) In General.--For purposes of section 46, the rural 
telecommunications facilities credit for any taxable year is an amount 
equal to the applicable percentage of the qualified broadband local 
access facilities expenditures for such taxable year.
    ``(b) Applicable Percentage.--For purposes of subsection (a), the 
applicable percentage in the case of qualified broadband local access 
facilities expenditures in connection with--
            ``(1) broadband telecommunications facilities, is 10 
        percent, and
            ``(2) enhanced broadband telecommunications facilities, is 
        15 percent.
    ``(c) Qualified Broadband Local Access Facilities Expenditure.--For 
purposes of this section, the term `qualified broadband local access 
facilities expenditure' means any expenditure--
            ``(1) chargeable to capital account--
                    ``(A) for property for which depreciation is 
                allowable under section 168, and
                    ``(B) incurred in connection with broadband 
                telecommunications facilities or enhanced broadband 
                telecommunications facilities serving rural 
                subscribers, and
            ``(2) incurred during the period--
                    ``(A) beginning with the taxpayer's (or any 
                predecessor's) first taxable year beginning after the 
                date of the enactment of this section, and
                    ``(B) ending with the taxpayer's (or any 
                predecessor's) third taxable year beginning after such 
                date.
    ``(d) Definitions and Special Rules.--For purposes of this 
section--
            ``(1) Broadband telecommunications facilities.--The term 
        `broadband telecommunications facilities' means broadband local 
        access facilities capable of--
                    ``(A) transmitting voice, and
                    ``(B) downloading data at a rate of 1.5 MBPS and 
                uploading data at a rate of .5 MBPS.
            ``(2) Enhanced broadband telecommunications facilities.--
        The term `enhanced broadband telecommunications facilities' 
        means the broadband local access facilities capable of--
                    ``(A) transmitting voice, and
                    ``(B) downloading and uploading data at a rate of 
                10 MBPS.
            ``(3) Determination of broadband local access facilities.--
        Broadband local access facilities--
                    ``(A) begin at the switching point closest to the 
                rural subscriber, which is--
                            ``(i) the subscriber side of the nearest 
                        switching facility in the case of local 
                        exchange carriers,
                            ``(ii) the subscriber side of the headend 
                        or the node in the case of cable television 
                        operators, and
                            ``(iii) the subscriber side of the 
                        transmission and reception facilities in the 
                        case of a wireless or satellite carrier,
                    ``(B) end at the interface between the network and 
                the rural subscriber's location, and
                    ``(C) do not include any switching facility.
            ``(4) Rural subscriber.--The term `rural subscriber' means 
        a subscriber who lives in an incorporated or unincorporated 
        place which is not located in an area designated as a 
        Metropolitan Area by the Office of Management and Budget.''.
    (c) Special Rule for Mutual or Cooperative Telephone Companies.--
Section 501(c)(12)(B) of the Internal Revenue Code of 1986 (relating to 
list of exempt organizations) is amended by striking ``or'' at the end 
of clause (iii), by striking the period at the end of clause (iv) and 
inserting ``, or'', and by adding at the end the following new clause:
                            ``(v) which is not described in 
                        subparagraph (A), in an amount which does not 
                        exceed in any year an amount equal to the 
                        applicable percentage of the qualified 
                        broadband local access facilities expenditures 
                        (as determined in section 47A) of the mutual or 
                        cooperative telephone company for such year.''
    (d) Conforming Amendment.--The table of sections for subpart E of 
part IV of subchapter A of chapter 1 of the Internal Revenue Code of 
1986 is amended by inserting after the item relating to section 47 the 
following:

``Sec. 47A. Rural telecommunications facilities credit.''
    (e) Effective Dates.--
            (1) In general.--Except as provided in paragraph (2), the 
        amendments made by this section shall apply to expenditures 
        incurred after the date of the enactment of this Act.
            (2) Special rule.--The amendments made by subsection (c) 
        shall apply to amounts received after the date of the enactment 
        of this Act.

                 TITLE III--RURAL BROADBAND ENHANCEMENT

SEC. 301. FEDERAL COMMUNICATIONS COMMISSION TO PROVIDE SUPPORT FROM 
              UNIVERSAL SERVICE FUND.

    Section 254(e) of the Communications Act of 1934 (47 U.S.C. 254(e)) 
is amended--
            (1) by redesignating so much of the text of such subsection 
        as follows ``(e) Universal Service Support.--'' as paragraph 
        (1);
            (2) by inserting before ``After'' the following heading: 
        ``(1) In general.--''; and
            (3) by adding at the end the following:
            ``(2) Rural area broadband support.--In addition to any 
        other support provided under paragraph (1), the Commission 
        shall, within 90 days after the date of enactment of the Rural 
        Broadband Enhancement Act, initiate a proceeding to provide 
        Federal universal service support for the deployment of 
        broadband service (as defined in section 156(e)(1) of the 
        National Telecommunications and Information Administration 
        Organization Act) to eligible rural communities (as defined in 
        section 156(e)(2) of that Act). The proceeding shall be 
        completed within 240 days. Federal universal service support 
        provided as a result of that proceeding shall be determined 
        without cost averaging of any above-average cost areas with any 
        lower cost areas, such as would occur in statewide or study 
        averaging, and may be used for the deployment of--
                    ``(A) loop treatments and digital subscriber line 
                access multiplexers;
                    ``(B) cable modems;
                    ``(C) wireless technology; and
                    ``(D) satellite technology.''.

SEC. 302. RURAL UTILITIES SERVICE LOAN PROGRAM.

    Part C of title I of the National Telecommunications and 
Information Administration Organization Act (47 U.S.C. 901 et seq.) is 
amended by adding at the end thereof the following:

``SEC. 156. BROADBAND TELECOMMUNICATIONS SERVICES.

    ``(a) In General.--The Rural Utilities Service of the Department of 
Agriculture, after consultation with the NTIA, shall make loans or 
other extensions of credit to companies certified as eligible 
telecommunications carriers providers, or that accept the obligations 
of an eligible telecommunications carrier, in accordance with the 
provisions of this section to finance the deployment of broadband 
telecommunications services to eligible rural communities.
    ``(b) Eligibility Requirements.--To be eligible for a loan or other 
extension of credit under this section, a project shall--
            ``(1) be capable of delivering broadband service;
            ``(2) be for the purpose of making access to broadband 
        service available to an eligible rural community where 
        broadband service is not otherwise generally available 
        throughout that community; and
            ``(3) be subject to the standards for service and area wide 
        coverage applicable to other projects administered by the Rural 
        Utilities Service.
    ``(c) Terms and Conditions.--Loans made under this section--
            ``(1) shall be made available in accordance with the 
        requirements of the Federal Credit Reform Act of 1990 (2 U.S.C. 
        661);
            ``(2) shall bear interest at an annual rate of not more 
        than 2 percent per annum; and
            ``(3) shall be made for the longer of--
                    ``(A) a term of 30 years; or
                    ``(B) the useful life of the assets constructed, 
                reconstructed, or acquired.
    ``(d) Limitations.--
            ``(1) Technology neutrality.--In making loans under this 
        section, the Rural Utilities Service may not take into 
        consideration the technology proposed to be employed.
            ``(2) Security interest.--The Rural Utilities Service may 
        take a security interest in assets or revenue streams, in 
        connection with a loan or other extension of credit made under 
        this section, of not more than the amount sufficient to cover 
        the assets financed by that loan or extension of credit.
    ``(e) Definitions.--In this section:
            ``(1) Broadband service.--The term `broadband service' 
        includes, without regard to any particular transmission medium 
        or technology, high-speed, switched, broadband 
        telecommunications capable of delivering not less than 1.0 
        megabits of data per second to the user and 0.5 megabits of 
        data per second from the user that enables users to originate 
        and receive high-quality voice, data, graphics, and video 
        telecommunications. The Commission shall, from time-to-time as 
        circumstances warrant, revise the rate-of-data-transmission 
        criteria stated in the preceding sentence upward to reflect 
        technological advances, and the criteria, as so revised, shall 
        be applied under the preceding sentence in lieu of the rate-of-
        data-transmission criteria stated or previously revised by the 
        Commission under this sentence.
            ``(2) Eligible rural community.--The term `eligible rural 
        community' means any incorporated or unincorporated place that 
        is not located in an area designated as a Metropolitan Area by 
        the Office of Management and Budget.''.

SEC. 303. FUNDING.

    There are authorized to be appropriated to the Secretary of 
Agriculture to carry out the provisions of section 156 of the National 
Telecommunications and Information Administration Organization Act 
$3,000,000,000 for fiscal years 2001, 2002, 2003, 2004, through 2005, 
such amount to remain available until expended.
                                 <all>