[Congressional Bills 106th Congress]
[From the U.S. Government Publishing Office]
[S. 2097 Reported in Senate (RS)]





                                                       Calendar No. 461

106th CONGRESS

  2d Session

                                S. 2097

                          [Report No. 106-243]

_______________________________________________________________________

                                 A BILL

  To authorize loan guarantees in order to facilitate access to local 
television broadcast signals in unserved and underserved areas, and for 
                            other purposes.

_______________________________________________________________________

                             March 15, 2000

                       Reported with an amendment





                                                       Calendar No. 461
106th CONGRESS
  2d Session
                                S. 2097

                          [Report No. 106-243]

  To authorize loan guarantees in order to facilitate access to local 
television broadcast signals in unserved and underserved areas, and for 
                            other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                           February 24, 2000

 Mr. Burns (for himself, Mr. Gramm, Mr. Lott, Mr. Stevens, Mr. Crapo, 
 Mr. Hutchinson, Mr. Allard, Mr. Bunning, Ms. Snowe, Ms. Collins,  Mr. 
Grassley, Mr. Enzi, Mr. Thomas, Mr. Hagel, Mr. Lugar, and Mr. Cochran) 
introduced the following bill; which was read twice and referred to the 
            Committee on Banking, Housing, and Urban Affairs

                             March 15, 2000

 Reported under authority of the order of the Senate of March 9, 2000, 
                    by Mr. Gramm, with an amendment
 [Strike out all after the enacting clause and insert the part printed 
                               in italic]

_______________________________________________________________________

                                 A BILL


 
  To authorize loan guarantees in order to facilitate access to local 
television broadcast signals in unserved and underserved areas, and for 
                            other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

<DELETED>SECTION 1. SHORT TITLE.</DELETED>

<DELETED>    This Act may be cited as the ``Launching Our Communities' 
Access to Local Television Act of 2000''.</DELETED>

<DELETED>SEC. 2. PURPOSE.</DELETED>

<DELETED>    The purpose of this Act is to facilitate access, on a 
technologically neutral basis and by December 31, 2006, to signals of 
local television stations in unserved areas and underserved areas for 
the households located in such areas that seek access to such 
signals.</DELETED>

<DELETED>SEC. 3. LOCAL TELEVISION LOAN GUARANTEE BOARD.</DELETED>

<DELETED>    (a) Establishment.--There is established the LOCAL 
Television Loan Guarantee Board (in this Act referred to as the 
``Board'').</DELETED>
<DELETED>    (b) Members.--</DELETED>
        <DELETED>    (1) In general.--Subject to paragraph (2), the 
        Board shall consist of the following members:</DELETED>
                <DELETED>    (A) The Secretary of the Treasury, or the 
                designee of the Secretary.</DELETED>
                <DELETED>    (B) The Chairman of the Board of Governors 
                of the Federal Reserve System, or the designee of the 
                Chairman.</DELETED>
                <DELETED>    (C) The Secretary of Agriculture, or the 
                designee of the Secretary.</DELETED>
        <DELETED>    (2) Requirement as to designees.--An individual 
        may not be designated a member of the Board under paragraph (1) 
        unless the individual is an officer of the United States 
        pursuant to an appointment by the President, by and with the 
        advice and consent of the Senate.</DELETED>
<DELETED>    (c) Functions of the Board.--</DELETED>
        <DELETED>    (1) In general.--The Board shall determine whether 
        or not to approve loan guarantees under this Act. The Board 
        shall make such determinations consistent with the purpose of 
        this Act and in accordance with this subsection and section 
        4.</DELETED>
        <DELETED>    (2) Consultation authorized.--</DELETED>
                <DELETED>    (A) In general.--In carrying out its 
                functions under this Act, the Board shall consult with 
                such departments and agencies of the Federal Government 
                as the Board considers appropriate, including the 
                Department of Commerce, the Department of Agriculture, 
                the Department of the Treasury, the Department of 
                Justice, the Department of the Interior, the Board of 
                Governors of the Federal Reserve System, the Federal 
                Communications Commission, the Federal Trade 
                Commission, and the National Aeronautics and Space 
                Administration.</DELETED>
                <DELETED>    (B) Response.--A department or agency 
                consulted by the Board under subparagraph (A) shall 
                provide the Board such expertise and assistance as the 
                Board requires to carry out its functions under this 
                Act.</DELETED>
        <DELETED>    (3) Approval by majority vote.--The determination 
        of the Board to approve a loan guarantee under this Act shall 
be by a vote of a majority of the Board.</DELETED>

<DELETED>SEC. 4. APPROVAL OF LOAN GUARANTEES.</DELETED>

<DELETED>    (a) Authority To Approve Loan Guarantees.--Subject to the 
provisions of this section and consistent with the purpose of this Act, 
the Board may approve loan guarantees under this Act</DELETED>
<DELETED>    (b) Regulations.--</DELETED>
        <DELETED>    (1) Requirements.--The Board shall prescribe 
        regulations to implement the provisions of this Act.</DELETED>
        <DELETED>    (2) Elements.--The regulations prescribed under 
        paragraph (1) shall--</DELETED>
                <DELETED>    (A) set forth the form of any application 
                to be submitted to the Board under this Act;</DELETED>
                <DELETED>    (B) set forth time periods for the review 
                and consideration by the Board of applications to be 
                submitted to the Board under this Act, and for any 
                other action to be taken by the Board with respect to 
                such applications;</DELETED>
                <DELETED>    (C) provide appropriate safeguards against 
                the evasion of the provisions of this Act;</DELETED>
                <DELETED>    (D) set forth the circumstances in which 
                an applicant, together with any affiliate of an 
                applicant, shall be treated as an applicant for a loan 
                guarantee under this Act;</DELETED>
                <DELETED>    (E) include requirements that appropriate 
                parties submit to the Board any documents and 
                assurances that are required for the administration of 
                the provisions of this Act; and</DELETED>
                <DELETED>    (F) include such other provisions 
                consistent with the purpose of this Act as the Board 
                considers appropriate.</DELETED>
        <DELETED>    (3) Construction.--(A) Nothing in this Act shall 
        be construed to prohibit the Board from requiring, to the 
        extent and under circumstances considered appropriate by the 
        Board, that affiliates of an applicant be subject to certain 
        obligations of the applicant as a condition to the approval or 
        maintenance of a loan guarantee under this Act.</DELETED>
        <DELETED>    (B) If any provision of this Act or the 
        application of such provision to any person or entity or 
        circumstance is held to be invalid by a court of competent 
        jurisdiction, the remainder of this Act, or the application of 
        such provision to such person or entity or circumstance other 
        than those as to which it is held invalid, shall not be 
        affected thereby.</DELETED>
<DELETED>    (c) Authority Limited by Appropriations Acts.--The Board 
may approve loan guarantees under this Act only to the extent provided 
for in advance in appropriations Acts.</DELETED>
<DELETED>    (d) Requirements and Criteria Applicable to Approval.--
</DELETED>
        <DELETED>    (1) In general.--The Board shall utilize the 
        underwriting criteria developed under subsection (g), and any 
        relevant information provided by the departments and agencies 
        with which the Board consults under section 3, to determine 
        which loans may be eligible for a loan guarantee under this 
        Act.</DELETED>
        <DELETED>    (2) Prerequisites.--In addition to meeting the 
        underwriting criteria under paragraph (1), a loan may not be 
        guaranteed under this Act unless--</DELETED>
                <DELETED>    (A) the loan is made to finance the 
                acquisition, improvement, enhancement, construction, 
                deployment, launch, or rehabilitation of the means by 
                which local television broadcast signals will be 
                delivered to an unserved area or underserved 
                area;</DELETED>
                <DELETED>    (B) the proceeds of the loan will not be 
                used for operating expenses;</DELETED>
                <DELETED>    (C) the proposed project, as determined by 
                the Board in consultation with the National 
                Telecommunications and Information Administration, is 
                not likely to have a substantial adverse impact on 
                competition that outweighs the benefits of improving 
                access to the signals of a local television station in 
                an unserved area or underserved area;</DELETED>
                <DELETED>    (D) the loan is provided by an insured 
                depository institution (as that term is defined in 
                section 3 of the Federal Deposit Insurance Act) that is 
                acceptable to the Board, and has terms, in the judgment 
                of the Board, that are consistent in material respects 
                with the terms of similar obligations in the private 
                capital market;</DELETED>
                <DELETED>    (E) repayment of the loan is required to 
                be made within a term of the lesser of--</DELETED>
                        <DELETED>    (i) 25 years from the date of the 
                        execution of the loan; or</DELETED>
                        <DELETED>    (ii) the economically useful life, 
                        as determined by the Board, of the primary 
                        assets to be used in the delivery of the 
                        signals concerned; and</DELETED>
                <DELETED>    (F) the loan meets any additional criteria 
                developed under subsection (g).</DELETED>
        <DELETED>    (3) Protection of united states financial 
        interests.--The Board may not approve the guarantee of a loan 
        under this Act unless--</DELETED>
                <DELETED>    (A) the Board has been given 
                documentation, assurances, and access to information 
                and persons necessary, as determined by the Board, to 
                address issues relevant to the review of the loan by 
                the Board for purposes of this Act; and</DELETED>
                <DELETED>    (B) the Board makes a determination in 
                writing that--</DELETED>
                        <DELETED>    (i) the assets, facilities, or 
                        equipment covered by the loan will be utilized 
                        economically and efficiently;</DELETED>
                        <DELETED>    (ii) the terms, conditions, 
                        security, and schedule and amount of repayments 
                        of principal and the payment of interest with 
                        respect to the loan protect the financial 
                        interests of the United States and are 
                        reasonable;</DELETED>
                        <DELETED>    (iii) all necessary and required 
                        regulatory and other approvals, spectrum 
                        rights, and delivery permissions have been 
                        received for the loan and the project under the 
                        loan;</DELETED>
                        <DELETED>    (iv) the loan would not be 
                        available on reasonable terms and conditions 
                        without a loan guarantee under this Act; 
                        and</DELETED>
                        <DELETED>    (v) repayment of the loan can 
                        reasonably be expected.</DELETED>
<DELETED>    (e) Priority Considerations.--</DELETED>
        <DELETED>    (1) Type of market.--</DELETED>
                <DELETED>    (A) Priority consideration to unserved 
                areas.--To the maximum extent practicable, the Board 
                shall give priority in the approval of loan guarantees 
                under this Act for projects that will serve unserved 
                areas.</DELETED>
                <DELETED>    (B) Prohibition.--The Board may not 
                approve a loan guarantee under this Act for a project 
                that is designed primarily to serve one or more of the 
                40 most populated designated market areas (as that term 
                is defined in section 122(j) of title 17, United States 
                Code).</DELETED>
        <DELETED>    (2) Projects that would reduce consumer costs.--To 
        the maximum extent practicable, the Board shall also give 
        priority in the approval of loan guarantees under this Act to 
        projects that would--</DELETED>
                <DELETED>    (A) offer a separate tier of local 
                broadcast signals, but for applicable Federal, State, 
                or local laws or regulations;</DELETED>
                <DELETED>    (B) provide lower projected costs to 
                consumers of such separate tier; and</DELETED>
                <DELETED>    (C) enable the delivery of local broadcast 
                signals consistent with the purpose of this Act by a 
                means reasonably compatible with existing systems or 
                devices predominantly in use.</DELETED>
<DELETED>    (f) Guarantee Limits.--</DELETED>
        <DELETED>    (1) Limitation on aggregate value of loans.--The 
        aggregate value of all loans for which loan guarantees are 
        issued under this Act may not exceed $1,250,000,000.</DELETED>
        <DELETED>    (2) Guarantee level.--A loan guarantee issued 
        under this Act may not exceed an amount equal to 70 percent of 
        a loan meeting in its entirety the requirements of subsection 
        (d)(2)(A). If only a portion of a loan meets the requirements 
        of that subsection, the Board shall determine that percentage 
        of the loan meeting such requirements (the ``applicable 
        portion'') and may issue a loan guarantee in an amount not 
exceeding 70 percent of the applicable portion.</DELETED>
<DELETED>    (g) Underwriting Criteria.--Not later than 180 days after 
the date of the enactment of this Act, the Board shall, in consultation 
with the Director of the Office of Management and Budget and an 
independent public accounting firm, develop underwriting criteria 
relating to the guarantee of loans that are consistent with the purpose 
of this Act, including appropriate collateral and cash flow levels for 
loans guaranteed under this Act, and such other matters as the Board 
considers appropriate.</DELETED>
<DELETED>    (h) Credit Risk Premiums.--</DELETED>
        <DELETED>    (1) Establishment and acceptance.--</DELETED>
                <DELETED>    (A) Authority.--The Board may establish 
                and approve the acceptance of credit risk premiums with 
                respect to a loan guarantee under this Act in order to 
                cover the cost, as determined under section 504(b)(1) 
                of the Federal Credit Reform Act of 1990, of the loan 
                guarantee. To the extent that appropriations of budget 
                authority are insufficient to cover the cost, as so 
                determined, of a loan guarantee under this Act, credit 
                risk premiums shall be accepted from a non-Federal 
                source under this subsection on behalf of the applicant 
                for the loan guarantee.</DELETED>
        <DELETED>    (2) Credit risk premium amount.--</DELETED>
                <DELETED>    (A) In general.--The Board shall determine 
                the amount of any credit risk premium to be accepted 
                with respect to a loan guarantee under this Act on the 
                basis of--</DELETED>
                        <DELETED>    (i) the financial and economic 
                        circumstances of the applicant for the loan 
                        guarantee, including the amount of collateral 
                        offered;</DELETED>
                        <DELETED>    (ii) the proposed schedule of loan 
                        disbursements;</DELETED>
                        <DELETED>    (iii) the business plans of the 
                        applicant for providing service;</DELETED>
                        <DELETED>    (iv) any financial commitment from 
                        a broadcast signal provider; and</DELETED>
                        <DELETED>    (v) the concurrence of the 
                        Director of the Office of Management and Budget 
                        as to the amount of the credit risk 
                        premium.</DELETED>
                <DELETED>    (B) Proportionality.--To the extent that 
                appropriations of budget authority are sufficient to 
                cover the cost, as determined under section 504(b)(1) 
                of the Federal Credit Reform Act of 1990, of loan 
                guarantees under this Act, the credit risk premium with 
                respect to each loan guarantee shall be reduced 
                proportionately.</DELETED>
<DELETED>    (i) Judicial Review.--The decision of the Board to approve 
or disapprove the making of a loan guarantee under this Act shall not 
be subject to judicial review.</DELETED>

<DELETED>SEC. 5. ADMINISTRATION OF LOAN GUARANTEES.</DELETED>

<DELETED>    (a) In General.--The Administrator of the Rural Utilities 
Service (in this Act referred to as the ``Administrator'') shall issue 
and otherwise administer loan guarantees that have been approved by the 
Board in accordance with sections 3 and 4 of this Act.</DELETED>
<DELETED>    (b) Security for Protection of United States Financial 
Interests.--</DELETED>
        <DELETED>    (1) Terms and conditions.--An applicant shall 
        agree to such terms and conditions as are satisfactory, in the 
        judgment of the Board, to ensure that, as long as any principal 
        or interest is due and payable on a loan guaranteed under this 
        Act, the applicant--</DELETED>
                <DELETED>    (A) shall maintain assets, equipment, 
                facilities, and operations on a continuing 
                basis;</DELETED>
                <DELETED>    (B) shall not make any discretionary 
                dividend payments that impair its ability to repay 
                obligations guaranteed under this Act; and</DELETED>
                <DELETED>    (C) shall remain sufficiently 
                capitalized.</DELETED>
        <DELETED>    (2) Collateral.--</DELETED>
                <DELETED>    (A) Existence of adequate collateral.--An 
                applicant shall provide the Board such documentation as 
                is necessary, in the judgment of the Board, to provide 
                satisfactory evidence that appropriate and adequate 
collateral secures a loan guaranteed under this Act.</DELETED>
                <DELETED>    (B) Form of collateral.--Collateral 
                required by subparagraph (A) shall consist solely of 
                assets of the applicant, any affiliate of the 
                applicant, or both (whichever the Board considers 
                appropriate), including primary assets to be used in 
                the delivery of signals for which the loan is 
                guaranteed.</DELETED>
                <DELETED>    (C) Review of valuation.--The value of 
                collateral securing a loan guaranteed under this Act 
                may be reviewed by the Board, and may be adjusted 
                downward by the Board if the Board reasonably believes 
                such adjustment is appropriate.</DELETED>
        <DELETED>    (3) Lien on interests in assets.--Upon the Board's 
        approval of a loan guarantee under this Act, the Administrator 
        shall have liens on assets securing the loan, which shall be 
        superior to all other liens on such assets, and the value of 
        the assets (based on a determination satisfactory to the Board) 
        subject to the liens shall be at least equal to the unpaid 
        balance of the loan amount covered by the loan 
        guarantee.</DELETED>
        <DELETED>    (4) Perfected security interest.--With respect to 
        a loan guaranteed under this Act, the Administrator and the 
        lender shall have a perfected security interest in assets 
        securing the loan that are fully sufficient to protect the 
        financial interests of the United States and the 
        lender.</DELETED>
        <DELETED>    (5) Insurance.--In accordance with practices in 
        the private capital market, as determined by the Board, the 
        applicant for a loan guarantee under this Act shall obtain, at 
        its expense, insurance sufficient to protect the financial 
        interests of the United States, as determined by the 
        Board.</DELETED>
<DELETED>    (c) Assignment of Loan Guarantees.--The holder of a loan 
guarantee under this Act may assign the loan guaranteed under this Act 
in whole or in part, subject to such requirements as the Board may 
prescribe.</DELETED>
<DELETED>    (d) Modification.--The Board may approve the modification 
of any term or condition of a loan guarantee under this Act, including 
the rate of interest, time of payment of principal or interest, or 
security requirements only if--</DELETED>
        <DELETED>    (1) the modification is consistent with the 
        financial interests of the United States;</DELETED>
        <DELETED>    (2) consent has been obtained from the parties to 
        the loan agreement;</DELETED>
        <DELETED>    (3) the modification is consistent with the 
        underwriting criteria developed under section 4(g);</DELETED>
        <DELETED>    (4) the modification does not adversely affect the 
        interest of the Federal Government in the assets or collateral 
        of the applicant;</DELETED>
        <DELETED>    (5) the modification does not adversely affect the 
        ability of the applicant to repay the loan; and</DELETED>
        <DELETED>    (6) the National Telecommunications and 
        Information Administration has been consulted by the Board 
        regarding the modification.</DELETED>
<DELETED>    (e) Performance Schedules.--</DELETED>
        <DELETED>    (1) Performance schedules.--An applicant for a 
        loan guarantee under this Act for a project covered by section 
        4(e)(1) shall enter into stipulated performance schedules with 
        the Administrator with respect to the signals to be provided 
        through the project.</DELETED>
        <DELETED>    (2) Penalty.--The Administrator may assess against 
        and collect from an applicant described in paragraph (1) a 
        penalty not to exceed 3 times the interest due on the 
        guaranteed loan of the applicant under this Act if the 
        applicant fails to meet its stipulated performance schedule 
        under that paragraph.</DELETED>
<DELETED>    (f) Compliance.--The Administrator, in cooperation with 
the Board and as the regulations of the Board may provide, shall 
enforce compliance by an applicant, and any other party to a loan 
guarantee for whose benefit assistance under this Act is intended, with 
the provisions of this Act, any regulations under this Act, and the 
terms and conditions of the loan guarantee, including through the 
submittal of such reports and documents as the Board may require in 
regulations prescribed by the Board and through regular periodic 
inspections and audits.</DELETED>
<DELETED>    (g) Commercial Validity.--A loan guarantee under this Act 
shall be incontestable--</DELETED>
        <DELETED>    (1) in the hands of an applicant on whose behalf 
        the loan guarantee is made, unless the applicant engaged in 
        fraud or misrepresentation in securing the loan guarantee; 
        and</DELETED>
        <DELETED>    (2) as to any person or entity (or their 
        respective successor in interest) who makes or contracts to 
        make a loan to the applicant for the loan guarantee in reliance 
        thereon, unless such person or entity (or respective successor 
        in interest) engaged in fraud or misrepresentation in making or 
        contracting to make such loan.</DELETED>
<DELETED>    (h) Defaults.--The Board shall prescribe regulations 
governing defaults on loans guaranteed under this Act, including the 
administration of the payment of guaranteed amounts upon 
default.</DELETED>
<DELETED>    (i) Recovery of Payments.--</DELETED>
        <DELETED>    (1) In general.--The Administrator shall be 
        entitled to recover from an applicant for a loan guarantee 
        under this Act the amount of any payment made to the holder of 
        the guarantee with respect to the loan.</DELETED>
        <DELETED>    (2) Subrogation.--Upon making a payment described 
        in paragraph (1), the Administrator shall be subrogated to all 
        rights of the party to whom the payment is made with respect to 
        the guarantee which was the basis for the payment.</DELETED>
        <DELETED>    (3) Disposition of property.--</DELETED>
                <DELETED>    (A) Sale or disposal.--The Administrator 
                shall, in an orderly and efficient manner, sell or 
                otherwise dispose of any property or other interests 
                obtained under this Act in a manner that maximizes 
                taxpayer return and is consistent with the financial 
                interests of the United States.</DELETED>
                <DELETED>    (B) Maintenance.--The Administrator shall 
                maintain in a cost-effective and reasonable manner any 
                property pending sale or disposal of such property 
                under subparagraph (A).</DELETED>
<DELETED>    (j) Action Against Obligor.--</DELETED>
        <DELETED>    (1) Authority to bring civil action.--The 
        Administrator may bring a civil action in an appropriate 
        district court of the United States in the name of the United 
        States or of the holder of the obligation in the event of a 
        default on a loan guaranteed under this Act. The holder of a 
        loan guarantee shall make available to the Administrator all 
        records and evidence necessary to prosecute the civil 
        action.</DELETED>
        <DELETED>    (2) Fully satisfying obligations owed the united 
        states.--The Administrator may accept property in satisfaction 
        of any sums owed the United States as a result of a default on 
        a loan guaranteed under this Act, but only to the extent that 
        any cash accepted by the Administrator is not sufficient to 
        satisfy fully the sums owed as a result of the 
        default.</DELETED>
<DELETED>    (k) Breach of Conditions.--The Administrator shall 
commence a civil action in a court of appropriate jurisdiction to 
enjoin any activity which the Board finds is in violation of this Act, 
the regulations under this Act, or any conditions which were duly 
agreed to, and to secure any other appropriate relief, including relief 
against any affiliate of the applicant.</DELETED>
<DELETED>    (l) Attachment.--No attachment or execution may be issued 
against the Administrator or any property in the control of the 
Administrator pursuant to this Act before the entry of a final judgment 
(as to which all rights of appeal have expired) by a State, Federal, or 
other court of competent jurisdiction against the Administrator in a 
proceeding for such action.</DELETED>
<DELETED>    (m) Fees.--</DELETED>
        <DELETED>    (1) Application fee.--The Board may charge and 
        collect from an applicant for a loan guarantee under this Act a 
        fee to cover the cost of the Board in making necessary 
        determinations and findings with respect to the loan guarantee 
        application under this Act. The amount of the fee shall be 
        reasonable.</DELETED>
        <DELETED>    (2) Loan guarantee origination fee.--The Board may 
        charge, and the Administrator may collect, a loan guarantee 
        origination fee with respect to the issuance of a loan 
        guarantee under this Act.</DELETED>
        <DELETED>    (3) Use of fees collected.--Any fee collected 
        under this subsection shall be used to offset administrative 
        costs under this Act, including costs of the Board and of the 
Administrator.</DELETED>
<DELETED>    (n) Requirements Relating to Affiliates.--</DELETED>
        <DELETED>    (1) Indemnification.--An affiliate of an applicant 
        for a loan guarantee under this Act shall indemnify the United 
        States for any losses that the United States incurs as a result 
        of--</DELETED>
                <DELETED>    (A) a judgment against the applicant or 
                any of its affiliates;</DELETED>
                <DELETED>    (B) any breach by the applicant or any of 
                its affiliates of their obligations under the loan 
                guarantee agreement;</DELETED>
                <DELETED>    (C) any violation of the provisions of 
                this Act, and the regulations prescribed under this 
                Act, by the applicant or any of its 
                affiliates;</DELETED>
                <DELETED>    (D) any penalties incurred by the 
                applicant or any of its affiliates for any reason, 
                including violation of a stipulated performance 
                schedule under subsection (e); and</DELETED>
                <DELETED>    (E) any other circumstances that the Board 
                considers appropriate.</DELETED>
        <DELETED>    (2) Limitation on transfer of loan proceeds.--An 
        applicant for a loan guarantee under this Act may not transfer 
        any part of the proceeds of the loan to an affiliate.</DELETED>
<DELETED>    (o) Effect of Bankruptcy.--(1) Notwithstanding any other 
provision of law, whenever any person or entity is indebted to the 
United States as a result of any loan guarantee issued under this Act 
and such person or entity is insolvent or is a debtor in a case under 
title 11, United States Code, the debts due to the United States shall 
be satisfied first.</DELETED>
<DELETED>    (2) A discharge in bankruptcy under title 11, United 
States Code, shall not release a person or entity from an obligation to 
the United States in connection with a loan guarantee under this 
Act.</DELETED>

<DELETED>SEC. 6. ANNUAL AUDIT.</DELETED>

<DELETED>    (a) Requirement.--The Comptroller General of the United 
States shall conduct on an annual basis an audit of the administration 
of the provisions of this Act.</DELETED>
<DELETED>    (b) Report.--The Comptroller General shall submit to the 
Committee on Banking, Housing, and Urban Affairs of the Senate and the 
Committee on Banking and Financial Services of the House of 
Representatives a report on each audit conducted under subsection 
(a).</DELETED>

<DELETED>SEC. 7. SUNSET.</DELETED>

<DELETED>    No loan guarantee may be approved under this Act after 
December 31, 2006.</DELETED>

<DELETED>SEC. 8. RETRANSMISSION OF LOCAL TELEVISION BROADCAST 
              STATIONS.</DELETED>

<DELETED>    An applicant shall be subject to applicable rights, 
obligations, and limitations of title 17, United States Code. If a 
local broadcast station requests carriage of its signal and is located 
in a market not served by a satellite carrier providing service under a 
statutory license under section 122 of title 17, United States Code, 
the applicant shall carry the signal of that station without charge, 
and shall be subject to the applicable rights, obligations, and 
limitations of sections 338, 614, and 615 of the Communications Act of 
1934.</DELETED>

<DELETED>SEC. 9. DEFINITIONS.</DELETED>

<DELETED>    In this Act:</DELETED>
        <DELETED>    (1) Affiliate.--The term ``affiliate''--</DELETED>
                <DELETED>    (A) means any person or entity that 
                controls, or is controlled by, or is under common 
                control with, another person or entity; and</DELETED>
                <DELETED>    (B) may include any individual who is a 
                director or senior management officer of an affiliate, 
                a shareholder controlling more than 25 percent of the 
                voting securities of an affiliate, or more than 25 
                percent of the ownership interest in an affiliate not 
                organized in stock form.</DELETED>
        <DELETED>    (2) Unserved area.--The term ``unserved area'' 
        means any area (as determined using standards employed by the 
Federal Communications Commission) that--</DELETED>
                <DELETED>    (A) is outside the grade B contour of the 
                local television broadcast signals serving a particular 
                dominant market area; and</DELETED>
                <DELETED>    (B) does not have access to such signals 
                by other widely marketed means.</DELETED>
        <DELETED>    (3) Underserved area.--The term ``underserved 
        area'' means any area that does not receive local television 
        broadcast signals over a commercial for-profit direct-to-home 
        satellite distribution system.</DELETED>
        <DELETED>    (4) Common terms.--Except as provided in 
        paragraphs (1) through (3), any term used in this Act that is 
        defined in the Communications Act of 1934 (47 U.S.C. 151 et 
        seq.) has the meaning given that term in the Communications Act 
        of 1934.</DELETED>

<DELETED>SEC. 10. AUTHORIZATIONS OF APPROPRIATIONS.</DELETED>

<DELETED>    (a) Cost of Loan Guarantees.--For the cost of the loans 
guaranteed under this Act, including the cost of modifying the loans, 
as defined in section 502 of the Congressional Budget Act of 1974 (2 
U.S.C. 661(a)), there are authorized to be appropriated for fiscal 
years 2001 through 2006, such amounts as may be necessary.</DELETED>
<DELETED>    (b) Cost of Administration.--There is hereby authorized to 
be appropriated such sums as may be necessary to carry out the 
provisions of this Act, other than to cover costs under subsection 
(a).</DELETED>
<DELETED>    (c) Availability.--Any amounts appropriated pursuant to 
the authorizations of appropriations in subsections (a) and (b) shall 
remain available until expended.</DELETED>

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Launching Our Communities' Access to 
Local Television Act of 2000''.

SEC. 2. PURPOSE.

    The purpose of this Act is to facilitate access, on a 
technologically neutral basis and by December 31, 2006, to signals of 
local television stations for households located in unserved areas and 
underserved areas.

SEC. 3. LOCAL TELEVISION LOAN GUARANTEE BOARD.

    (a) Establishment.--There is established the LOCAL Television Loan 
Guarantee Board (in this Act referred to as the ``Board'').
    (b) Members.--
            (1) In general.--Subject to paragraph (2), the Board shall 
        consist of the following members:
                    (A) The Secretary of the Treasury, or the designee 
                of the Secretary.
                    (B) The Chairman of the Board of Governors of the 
                Federal Reserve System, or the designee of the 
                Chairman.
                    (C) The Secretary of Agriculture, or the designee 
                of the Secretary.
            (2) Requirement as to designees.--An individual may not be 
        designated a member of the Board under paragraph (1) unless the 
        individual is an officer of the United States pursuant to an 
        appointment by the President, by and with the advice and 
        consent of the Senate.
    (c) Functions of the Board.--
            (1) In general.--The Board shall determine whether or not 
        to approve loan guarantees under this Act. The Board shall make 
        such determinations consistent with the purpose of this Act and 
        in accordance with this subsection and section 4 of this Act.
            (2) Consultation authorized.--
                    (A) In general.--In carrying out its functions 
                under this Act, the Board shall consult with such 
                departments and agencies of the Federal Government as 
                the Board considers appropriate, including the 
                Department of Commerce, the Department of Agriculture, 
                the Department of the Treasury, the Department of 
                Justice, the Department of the Interior, the Board of 
                Governors of the Federal Reserve System, the Federal 
                Communications Commission, the Federal Trade 
                Commission, and the National Aeronautics and Space 
                Administration.
                    (B) Response.--A department or agency consulted by 
                the Board under subparagraph (A) shall provide the 
                Board such expertise and assistance as the Board 
                requires to carry out its functions under this Act.
            (3) Approval by majority vote.--The determination of the 
        Board to approve a loan guarantee under this Act shall be by a 
        vote of a majority of the Board.

SEC. 4. APPROVAL OF LOAN GUARANTEES.

    (a) Authority To Approve Loan Guarantees.--Subject to the 
provisions of this section and consistent with the purpose of this Act, 
the Board may approve loan guarantees under this Act.
    (b) Regulations.--
            (1) Requirements.--The Administrator (as defined in section 
        5 of this Act), under the direction of and for approval by the 
        Board, shall prescribe regulations to implement the provisions 
        of this Act and shall do so not later than 120 days after funds 
        authorized to be appropriated under section 10 of this Act have 
        been appropriated in a bill signed into law.
            (2) Elements.--The regulations prescribed under paragraph 
        (1) shall--
                    (A) set forth the form of any application to be 
                submitted to the Board under this Act;
                    (B) set forth time periods for the review and 
                consideration by the Board of applications to be 
                submitted to the Board under this Act, and for any 
                other action to be taken by the Board with respect to 
                such applications;
                    (C) provide appropriate safeguards against the 
                evasion of the provisions of this Act;
                    (D) set forth the circumstances in which an 
                applicant, together with any affiliate of an applicant, 
                shall be treated as an applicant for a loan guarantee 
                under this Act;
                    (E) include requirements that appropriate parties 
                submit to the Board any documents and assurances that 
                are required for the administration of the provisions 
                of this Act; and
                    (F) include such other provisions consistent with 
                the purpose of this Act as the Board considers 
                appropriate.
            (3) Construction.--(A) Nothing in this Act shall be 
        construed to prohibit the Board from requiring, to the extent 
        and under circumstances considered appropriate by the Board, 
        that affiliates of an applicant be subject to certain 
        obligations of the applicant as a condition to the approval or 
maintenance of a loan guarantee under this Act.
            (B) If any provision of this Act or the application of such 
        provision to any person or entity or circumstance is held to be 
        invalid by a court of competent jurisdiction, the remainder of 
        this Act, or the application of such provision to such person 
        or entity or circumstance other than those as to which it is 
        held invalid, shall not be affected thereby.
    (c) Authority Limited by Appropriations Acts.--The Board may 
approve loan guarantees under this Act only to the extent provided for 
in advance in appropriations Acts. The Board may delegate to the 
Administrator (as defined in section 5 of this Act) the authority to 
approve loan guarantees of up to $20,000,000. To the extent the 
Administrator is delegated such authority, the Administrator shall 
comply with the terms of this Act applicable to the Board.
    (d) Requirements and Criteria Applicable to Approval.--
            (1) In general.--The Board shall utilize the underwriting 
        criteria developed under subsection (g), and any relevant 
        information provided by the departments and agencies with which 
        the Board consults under section 3, to determine which loans 
        may be eligible for a loan guarantee under this Act.
            (2) Prerequisites.--In addition to meeting the underwriting 
        criteria under paragraph (1), a loan may not be guaranteed 
        under this Act unless--
                    (A) the loan is made to finance the acquisition, 
                improvement, enhancement, construction, deployment, 
                launch, or rehabilitation of the means by which local 
                television broadcast signals will be delivered to an 
                unserved area or underserved area;
                    (B) the proceeds of the loan will not be used for 
                operating expenses;
                    (C) the proposed project, as determined by the 
                Board in consultation with the National 
                Telecommunications and Information Administration, is 
                not likely to have a substantial adverse impact on 
                competition that outweighs the benefits of improving 
                access to the signals of a local television station in 
                an unserved area or underserved area;
                    (D) the loan is provided by an insured depository 
                institution (as that term is defined in section 3 of 
                the Federal Deposit Insurance Act) that is acceptable 
                to the Board, and has terms, in the judgment of the 
                Board, that are consistent in material respects with 
                the terms of similar obligations in the private capital 
                market;
                    (E) repayment of the loan is required to be made 
                within a term of the lesser of--
                            (i) 25 years from the date of the execution 
                        of the loan; or
                            (ii) the economically useful life, as 
                        determined by the Board or in consultation with 
                        persons or entities deemed appropriate by the 
                        Board, of the primary assets to be used in the 
                        delivery of the signals concerned; and
                    (F) the loan meets any additional criteria 
                developed under subsection (g).
            (3) Protection of united states financial interests.--The 
        Board may not approve the guarantee of a loan under this Act 
        unless--
                    (A) the Board has been given documentation, 
                assurances, and access to information, persons, and 
                entities necessary, as determined by the Board, to 
                address issues relevant to the review of the loan by 
                the Board for purposes of this Act; and
                    (B) the Board makes a determination in writing 
                that--
                            (i) to the best of its knowledge upon due 
                        inquiry, the assets, facilities, or equipment 
                        covered by the loan will be utilized 
                        economically and efficiently;
                            (ii) the terms, conditions, security, and 
                        schedule and amount of repayments of principal 
                        and the payment of interest with respect to the 
                        loan protect the financial interests of the 
                        United States and are reasonable;
                            (iii) to the extent possible, the value of 
                        collateral provided by an applicant is at least 
                        equal to the unpaid balance of the loan amount 
                        covered by the loan guarantee (the ``Amount'' 
                        for purposes of this clause); and if the value 
                        of collateral provided by an applicant is less 
                        than the Amount, the additional required 
                        collateral is provided by any affiliate of the 
                        applicant; and if the combined value of 
                        collateral provided by an applicant and any 
                        affiliate is not at least equal to the Amount, 
                        the collateral from such affiliate represents 
                        all of such affiliate's assets;
                            (iv) all necessary and required regulatory 
                        and other approvals, spectrum rights, and 
                        delivery permissions have been received for the 
                        loan, the project under the loan, and the Other 
                        Debt, if any, under subsection (f)(2)(B);
                            (v) the loan would not be available on 
                        reasonable terms and conditions without a loan 
                        guarantee under this Act; and
                            (vi) repayment of the loan can reasonably 
                        be expected.
    (e) Considerations.--
            (1) Type of market.--
                    (A) Priority considerations.--To the maximum extent 
                practicable, the Board shall give priority in the 
                approval of loan guarantees under this Act in the 
                following order: First, to projects that will serve the 
                greatest number of households in unserved areas; and 
                second, to projects that will serve the greatest number 
                of households in underserved areas. In each instance, 
                the Board shall consider the project's estimated cost 
                per household to be served.
                    (B) Prohibition.--The Board may not approve a loan 
                guarantee under this Act for a project that is designed 
primarily to serve 1 or more of the 40 most populated designated market 
areas (as that term is defined in section 122(j) of title 17, United 
States Code).
            (2) Other considerations.--The Board shall consider other 
        factors, which shall include projects that would--
                    (A) offer a separate tier of local broadcast 
                signals, but for applicable Federal, State, or local 
                laws or regulations;
                    (B) provide lower projected costs to consumers of 
                such separate tier; and
                    (C) enable the delivery of local broadcast signals 
                consistent with the purpose of this Act by a means 
                reasonably compatible with existing systems or devices 
                predominantly in use.
    (f) Guarantee Limits.--
            (1) Limitation on aggregate value of loans.--The aggregate 
        value of all loans for which loan guarantees are issued under 
        this Act (including the unguaranteed portion of loans issued 
        under paragraph (2)(A)) and Other Debt under paragraph (2)(B) 
        may not exceed $1,250,000,000.
            (2) Guarantee level.--A loan guarantee issued under this 
        Act--
                    (A) may not exceed an amount equal to 80 percent of 
                a loan meeting in its entirety the requirements of 
                subsection (d)(2)(A). If only a portion of a loan meets 
                the requirements of that subsection, the Board shall 
                determine that percentage of the loan meeting such 
                requirements (the ``applicable portion'') and may issue 
                a loan guarantee in an amount not exceeding 80 percent 
                of the applicable portion; or
                    (B) may, as to a loan meeting in its entirety the 
                requirements of subsection (d)(2)(A), cover the amount 
                of such loan only if that loan is for an amount not 
                exceeding 80 percent of the total debt financing for 
                the project, and other debt financing (also meeting in 
                its entirety the requirements of subsection (d)(2)(A)) 
                from the same source for a total amount not less than 
                20 percent of the total debt financing for the project 
                (``Other Debt'') has been approved.
    (g) Underwriting Criteria.--Within the period provided for under 
subsection (b)(1), the Board shall, in consultation with the Director 
of the Office of Management and Budget and an independent public 
accounting firm, develop underwriting criteria relating to the 
guarantee of loans that are consistent with the purpose of this Act, 
including appropriate collateral and cash flow levels for loans 
guaranteed under this Act, and such other matters as the Board 
considers appropriate.
    (h) Credit Risk Premiums.--
            (1) Establishment and acceptance.--The Board may establish 
        and approve the acceptance of credit risk premiums with respect 
        to a loan guarantee under this Act in order to cover the cost, 
        as determined under section 504(b)(1) of the Federal Credit 
        Reform Act of 1990, of the loan guarantee. To the extent that 
        appropriations of budget authority are insufficient to cover 
        the cost, as so determined, of a loan guarantee under this Act, 
        credit risk premiums shall be accepted from a non-Federal 
        source under this subsection on behalf of the applicant for the 
        loan guarantee.
            (2) Credit risk premium amount.--
                    (A) In general.--The Board shall determine the 
                amount of any credit risk premium to be accepted with 
                respect to a loan guarantee under this Act on the basis 
                of--
                            (i) the financial and economic 
                        circumstances of the applicant for the loan 
                        guarantee, including the amount of collateral 
                        offered;
                            (ii) the proposed schedule of loan 
                        disbursements;
                            (iii) the business plans of the applicant 
                        for providing service;
                            (iv) any financial commitment from a 
                        broadcast signal provider; and
                            (v) the concurrence of the Director of the 
                        Office of Management and Budget as to the 
                        amount of the credit risk premium.
                    (B) Proportionality.--To the extent that 
                appropriations of budget authority are sufficient to 
                cover the cost, as determined under section 504(b)(1) 
                of the Federal Credit Reform Act of 1990, of loan 
                guarantees under this Act, the credit risk premium with 
                respect to each loan guarantee shall be reduced 
                proportionately.
                    (C) Payment of premiums.--Credit risk premiums 
                under this subsection shall be paid to an account (the 
                ``Escrow Account'') established in the Treasury which 
                shall accrue interest and such interest shall be 
                retained by the account, subject to subparagraph (D).
                    (D) Deductions from escrow account.--If a default 
                occurs with respect to any loan guaranteed under this 
                Act and the default is not cured in accordance with the 
                terms of the underlying loan or loan guarantee 
                agreement, the Administrator, in accordance with 
                subsections (h) and (i) of section 5 of this Act, shall 
                liquidate, or shall cause to be liquidated, all assets 
                collateralizing such loan as to which it has a lien or 
                security interest. Any shortfall between the proceeds 
                of the liquidation net of costs and expenses relating 
                to the liquidation, and the guarantee amount paid 
                pursuant to this Act shall be deducted from funds in 
                the Escrow Account and credited to the Administrator 
                for payment of such shortfall. At such time as 
                determined under subsection (d)(2)(E) when all loans 
                guaranteed under this Act have been repaid or otherwise 
                satisfied in accordance with this Act and the 
                regulations promulgated hereunder, remaining funds in 
                the Escrow Account, if any, shall be refunded, on a pro 
                rata basis, to applicants whose loans guaranteed under 
                this Act were not in default, or where any default was 
                cured in accordance with the terms of the underlying 
                loan or loan guarantee agreement.
    (i) Judicial Review.--The decision of the Board to approve or 
disapprove the making of a loan guarantee under this Act shall not be 
subject to judicial review.

SEC. 5. ADMINISTRATION OF LOAN GUARANTEES.

    (a) In General.--The Administrator of the Rural Utilities Service 
(in this Act referred to as the ``Administrator'') shall issue and 
otherwise administer loan guarantees that have been approved by the 
Board in accordance with sections 3 and 4 of this Act.
    (b) Security for Protection of United States Financial Interests.--
            (1) Terms and conditions.--An applicant shall agree to such 
        terms and conditions as are satisfactory, in the judgment of 
        the Board, to ensure that, as long as any principal or interest 
        is due and payable on a loan guaranteed under this Act, the 
        applicant--
                    (A) shall maintain assets, equipment, facilities, 
                and operations on a continuing basis;
                    (B) shall not make any discretionary dividend 
                payments that impair its ability to repay obligations 
                guaranteed under this Act; and
                    (C) shall remain sufficiently capitalized.
            (2) Collateral.--
                    (A) Existence of adequate collateral.--An applicant 
                shall provide the Board such documentation as is 
                necessary, in the judgment of the Board, to provide 
                satisfactory evidence that appropriate and adequate 
                collateral secures a loan guaranteed under this Act.
                    (B) Form of collateral.--Collateral required by 
                subparagraph (A) shall consist solely of assets of the 
                applicant, any affiliate of the applicant, or both 
                (whichever the Board considers appropriate), including 
                primary assets to be used in the delivery of signals 
                for which the loan is guaranteed.
                    (C) Review of valuation.--The value of collateral 
                securing a loan guaranteed under this Act may be 
                reviewed by the Board, and may be adjusted downward by 
                the Board if the Board reasonably believes such 
                adjustment is appropriate.
            (3) Lien on interests in assets.--Upon the Board's approval 
        of a loan guarantee under this Act, the Administrator shall 
        have liens on assets securing the loan, which shall be superior 
        to all other liens on such assets, and the value of the assets 
        (based on a determination satisfactory to the Board) subject to 
        the liens shall be at least equal to the unpaid balance of the 
        loan amount covered by the loan guarantee, or that value 
        approved by the Board under section 4(d)(3)(B)(iii) of this 
        Act.
            (4) Perfected security interest.--With respect to a loan 
        guaranteed under this Act, the Administrator and the lender 
        shall have a perfected security interest in assets securing the 
        loan that are fully sufficient to protect the financial 
        interests of the United States and the lender.
            (5) Insurance.--In accordance with practices in the private 
        capital market, as determined by the Board, the applicant for a 
        loan guarantee under this Act shall obtain, at its expense, 
        insurance sufficient to protect the financial interests of the 
        United States, as determined by the Board.
    (c) Assignment of Loan Guarantees.--The holder of a loan guarantee 
under this Act may assign the loan guaranteed under this Act in whole 
or in part, subject to such requirements as the Board may prescribe.
    (d) Modification.--The Board may approve the modification of any 
term or condition of a loan guarantee or a loan guaranteed under this 
Act, including the rate of interest, time of payment of principal or 
interest, or security requirements only if--
            (1) the modification is consistent with the financial 
        interests of the United States;
            (2) consent has been obtained from the parties to the loan 
        agreement;
            (3) the modification is consistent with the underwriting 
        criteria developed under section 4(g) of this Act;
            (4) the modification does not adversely affect the interest 
        of the Federal Government in the assets or collateral of the 
        applicant;
            (5) the modification does not adversely affect the ability 
        of the applicant to repay the loan; and
            (6) the National Telecommunications and Information 
        Administration has been consulted by the Board regarding the 
        modification.
    (e) Performance Schedules.--
            (1) Performance schedules.--An applicant for a loan 
        guarantee under this Act for a project covered by section 
        4(e)(1) of this Act shall enter into stipulated performance 
        schedules with the Administrator with respect to the signals to 
        be provided through the project.
            (2) Penalty.--The Administrator may assess against and 
        collect from an applicant described in paragraph (1) a penalty 
        not to exceed 3 times the interest due on the guaranteed loan 
        of the applicant under this Act if the applicant fails to meet 
        its stipulated performance schedule under that paragraph.
    (f) Compliance.--The Administrator, in cooperation with the Board 
and as the regulations of the Board may provide, shall enforce 
compliance by an applicant, and any other party to a loan guarantee for 
whose benefit assistance under this Act is intended, with the 
provisions of this Act, any regulations under this Act, and the terms 
and conditions of the loan guarantee, including through the submittal 
of such reports and documents as the Board may require in regulations 
prescribed by the Board and through regular periodic inspections and 
audits.
    (g) Commercial Validity.--A loan guarantee under this Act shall be 
incontestable--
            (1) in the hands of an applicant on whose behalf the loan 
        guarantee is made, unless the applicant engaged in fraud or 
        misrepresentation in securing the loan guarantee; and
            (2) as to any person or entity (or their respective 
        successor in interest) who makes or contracts to make a loan to 
        the applicant for the loan guarantee in reliance thereon, 
        unless such person or entity (or respective successor in 
        interest) engaged in fraud or misrepresentation in making or 
        contracting to make such loan.
    (h) Defaults.--The Board shall prescribe regulations governing 
defaults on loans guaranteed under this Act, including the 
administration of the payment of guaranteed amounts upon default.
    (i) Recovery of Payments.--
            (1) In general.--The Administrator shall be entitled to 
        recover from an applicant for a loan guarantee under this Act 
        the amount of any payment made to the holder of the guarantee 
        with respect to the loan.
            (2) Subrogation.--Upon making a payment described in 
        paragraph (1), the Administrator shall be subrogated to all 
        rights of the party to whom the payment is made with respect to 
        the guarantee which was the basis for the payment.
            (3) Disposition of property.--
                    (A) Sale or disposal.--The Administrator shall, in 
                an orderly and efficient manner, sell or otherwise 
                dispose of any property or other interests obtained 
                under this Act in a manner that maximizes taxpayer 
                return and is consistent with the financial interests 
                of the United States.
                    (B) Maintenance.--The Administrator shall maintain 
                in a cost-effective and reasonable manner any property 
                or other interests pending sale or disposal of such 
                property or other interests under subparagraph (A).
    (j) Action Against Obligor.--
            (1) Authority to bring civil action.--The Administrator may 
        bring a civil action in an appropriate district court of the 
        United States in the name of the United States or of the holder 
        of the obligation in the event of a default on a loan 
        guaranteed under this Act. The holder of a loan guarantee shall 
        make available to the Administrator all records and evidence 
        necessary to prosecute the civil action.
            (2) Fully satisfying obligations owed the united states.--
        The Administrator may accept property in satisfaction of any 
        sums owed the United States as a result of a default on a loan 
        guaranteed under this Act, but only to the extent that any cash 
        accepted by the Administrator is not sufficient to satisfy 
        fully the sums owed as a result of the default.
    (k) Breach of Conditions.--The Administrator shall commence a civil 
action in a court of appropriate jurisdiction to enjoin any activity 
which the Board finds is in violation of this Act, the regulations 
under this Act, or any conditions which were duly agreed to, and to 
secure any other appropriate relief, including relief against any 
affiliate of the applicant.
    (l) Attachment.--No attachment or execution may be issued against 
the Administrator or any property in the control of the Administrator 
pursuant to this Act before the entry of a final judgment (as to which 
all rights of appeal have expired) by a Federal, State, or other court 
of competent jurisdiction against the Administrator in a proceeding for 
such action.
    (m) Fees.--
            (1) Application fee.--The Board may charge and collect from 
        an applicant for a loan guarantee under this Act a fee to cover 
        the cost of the Board in making necessary determinations and 
        findings with respect to the loan guarantee application under 
        this Act. The amount of the fee shall be reasonable.
            (2) Loan guarantee origination fee.--The Board may charge, 
        and the Administrator may collect, a loan guarantee origination 
        fee with respect to the issuance of a loan guarantee under this 
        Act.
            (3) Use of fees collected.--Any fee collected under this 
        subsection shall be used to offset administrative costs under 
        this Act, including costs of the Board and of the 
        Administrator.
    (n) Requirements Relating to Affiliates.--
            (1) Indemnification.--The United States shall be 
        indemnified by any affiliate (acceptable to the Board) of an 
        applicant for a loan guarantee under this Act for any losses 
        that the United States incurs as a result of--
                    (A) a judgment against the applicant or any of its 
                affiliates;
                    (B) any breach by the applicant or any of its 
                affiliates of their obligations under the loan 
                guarantee agreement;
                    (C) any violation of the provisions of this Act, 
                and the regulations prescribed under this Act, by the 
                applicant or any of its affiliates;
                    (D) any penalties incurred by the applicant or any 
                of its affiliates for any reason, including violation 
                of a stipulated performance schedule under subsection 
                (e); and
                    (E) any other circumstances that the Board 
                considers appropriate.
            (2) Limitation on transfer of loan proceeds.--An applicant 
        for a loan guarantee under this Act may not transfer any part 
        of the proceeds of the loan to an affiliate.
    (o) Effect of Bankruptcy.--(1) Notwithstanding any other provision 
of law, whenever any person or entity is indebted to the United States 
as a result of any loan guarantee issued under this Act and such person 
or entity is insolvent or is a debtor in a case under title 11, United 
States Code, the debts due to the United States shall be satisfied 
first.
    (2) A discharge in bankruptcy under title 11, United States Code, 
shall not release a person or entity from an obligation to the United 
States in connection with a loan guarantee under this Act.

SEC. 6. ANNUAL AUDIT.

    (a) Requirement.--The Comptroller General of the United States 
shall conduct on an annual basis an audit of the administration of the 
provisions of this Act.
    (b) Report.--The Comptroller General shall submit to the Committee 
on Banking, Housing, and Urban Affairs of the Senate and the Committee 
on Banking and Financial Services of the House of Representatives a 
report on each audit conducted under subsection (a).

SEC. 7. SUNSET.

    No loan guarantee may be approved under this Act after December 31, 
2006.

SEC. 8. RETRANSMISSION OF LOCAL TELEVISION BROADCAST STATIONS.

    An applicant shall be subject to applicable rights, obligations, 
and limitations of title 17, United States Code. If a local broadcast 
station requests carriage of its signal and is located in a market not 
served by a satellite carrier providing service under a statutory 
license under section 122 of title 17, United States Code, the 
applicant shall carry the signal of that station without charge, and 
shall be subject to the applicable rights, obligations, and limitations 
of sections 338, 614, and 615 of the Communications Act of 1934.

SEC. 9. DEFINITIONS.

    In this Act:
            (1) Affiliate.--The term ``affiliate''--
                    (A) means any person or entity that controls, or is 
                controlled by, or is under common control with, another 
                person or entity; and
                    (B) may include any individual who is a director or 
                senior management officer of an affiliate, a 
                shareholder controlling more than 25 percent of the 
                voting securities of an affiliate, or more than 25 
                percent of the ownership interest in an affiliate not 
                organized in stock form.
            (2) Unserved area.--The term ``unserved area'' means any 
        area that--
                    (A) is outside the grade B contour (as determined 
                using standards employed by the Federal Communications 
                Commission) of the local television broadcast signals 
                serving a particular designated market area; and
                    (B) does not have access to such signals by other 
                widely marketed means.
            (3) Underserved area.--The term ``underserved area'' means 
        any area that--
                    (A) is outside the grade A contour (as determined 
                using standards employed by the Federal Communications 
                Commission) of the local television broadcast signals 
                serving a particular designated market area; and
                    (B) has access to local television broadcast 
                signals from not more than one commercial, for-profit 
                multichannel video provider.
            (4) Common terms.--Except as provided in paragraphs (1) 
        through (3), any term used in this Act that is defined in the 
        Communications Act of 1934 (47 U.S.C. 151 et seq.) has the 
        meaning given that term in the Communications Act of 1934.

SEC. 10. AUTHORIZATIONS OF APPROPRIATIONS.

    (a) Cost of Loan Guarantees.--For the cost of the loans guaranteed 
under this Act, including the cost of modifying the loans, as defined 
in section 502 of the Congressional Budget Act of 1974 (2 U.S.C. 
661(a)), there are authorized to be appropriated for fiscal years 2001 
through 2006, such amounts as may be necessary.
    (b) Cost of Administration.--There is hereby authorized to be 
appropriated such sums as may be necessary to carry out the provisions 
of this Act, other than to cover costs under subsection (a).
    (c) Availability.--Any amounts appropriated pursuant to the 
authorizations of appropriations in subsections (a) and (b) shall 
remain available until expended.