[Congressional Bills 107th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2847 Introduced in House (IH)]
107th CONGRESS
1st Session
H. R. 2847
To encourage the deployment of broadband telecommunications in rural
America, and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
September 6, 2001
Mr. Boswell (for himself and Mr. Osborne) introduced the following
bill; which was referred to the Committee on Agriculture, and in
addition to the Committees on Ways and Means, Energy and Commerce, and
Education and the Workforce, 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 ``Rural America Technology Enhancement
Act of 2001''.
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 Utilities
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 megabits of
data per second and uploading data at a rate of 0.5
megabits of data per second.
``(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 megabits of data per second.
``(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.
TITLE IV--OFFICE OF RURAL TECHNOLOGY.
SEC. 401. ESTABLISHMENT.
(a) Establishment.--The Secretary of Agriculture shall establish in
the Department of Agriculture the Office of Rural Technology, which
shall have the functions described in subsection (b).
(b) Functions.--Within 6 months after the date of the enactment of
this Act, the Secretary of Agriculture shall ensure that the Office of
Rural Technology can perform the following functions:
(1) Act as a centralized repository of information about
all public and private programs that offer technology
assistance to entities in rural areas.
(2) Make such information available and easily accessible
to the public.
(3) Inform the public of the existence and purpose of, and
how to obtain information from, the Office of Rural Technology.
(c) Technology Assistance Defined.--In this section, the term
``technology assistance'' includes financial assistance of any kind to
enable an entity to create, modify, or use electronic information or
electronic devices.
TITLE V--TAX CREDIT FOR HIRING IN RURAL AREAS
SEC. 501. CREDIT TO HIGH-TECH EMPLOYERS WHO HIRE EMPLOYEES RESIDING IN
RURAL AREAS.
(a) In General.--Subpart D of part IV of subchapter A of chapter 1
of the Internal Revenue Code of 1986 (relating to business-related
credits) is amended by adding at the end the following new section:
``SEC. 45G. HIGH-TECH EMPLOYERS WHO HIRE EMPLOYEES RESIDING IN RURAL
AREAS.
``(a) Allowance of Credit.--
``(1) In general.--For purposes of section 38, in the case
of a employer, the rural high-tech employment credit determined
under this section for such taxable year is an amount equal to
20 percent of the qualified rural wages paid or incurred during
the calendar year which ends with or within such taxable year.
``(b) Qualified Rural Wages.--
``(1) In general.--For purposes of this section, the term
`qualified rural wages' means any wages paid or incurred by an
employer for services performed by an employee while such
employee is a qualified rural employee.
``(2) Only first $15,000 of wages per year taken into
account.--With respect to each qualified rural employee, the
amount of qualified zone wages which may be taken into account
for a calendar year shall not exceed $15,000.
``(3) Coordination with other employment credits.--
``(A) In general.--The term `qualified rural wages'
shall not include wages taken into account in
determining the credit under section 51 or 1396.
``(B) Coordination with paragraph (2).--The $15,000
amount in paragraph (2) shall be reduced for any
calendar year by the amount of wages paid or incurred
during such year which are taken into account in determining the credit
under section 51 or 1396.
``(c) Qualified Rural Employee.--For purposes of this section--
``(1) In general.--Except as otherwise provided in this
subsection, the term `qualified rural employee' means, with
respect to any period, any employee of an employer if--
``(A) substantially all of the services performed
during such period by such employee for such employer
are information or communication technology services
and are performed within a rural area in a high-tech
trade or business of the employer, and
``(B) the principal place of abode of such employee
while performing such services is within a rural area.
``(2) Certain individuals not eligible.--The term
`qualified rural employee' shall not include--
``(A) any individual described in subparagraph (A),
(B), or (C) of section 51(i)(1),
``(B) any 5-percent owner (as defined in section
416(i)(1)(B),
``(C) any individual employed by the employer for
less than 90 days,
``(D) any individual employed by the employer at
any facility described in section 144(c)(6)(B), and
``(E) any individual employed by the employer in a
trade or business the principal activity of which is
farming (within the meaning of subparagraphs (A) or (B)
of section 2032A(e)(5)), but only if, as of the close
of the taxable year, the sum of--
``(i) the aggregate unadjusted bases (or,
if greater, the fair market value) of the
assets owned by the employer which are used in
such a trade or business, and
``(ii) the aggregate value of assets leased
by the employer which are used in such a trade
or business (as determined under regulations
prescribed by the Secretary),
exceeds $500,000.
``(3) Special rules related to termination of employment.--
``(A) In general.--Paragraph (2)(C) shall not apply
to--
``(i) a termination of employment of an
individual who before the close of the period
referred to in paragraph (2)(C) becomes
disabled to perform the services of such
employment unless such disability is removed
before the close of such period and the
taxpayer fails to offer reemployment to such
individual, or
``(ii) a termination of employment of an
individual if it is determined under the
applicable State unemployment compensation law
that the termination was due to the misconduct
of such individual.
``(B) Changes in form of business.--For purposes of
paragraph (2)(C), the employment relationship between
the taxpayer and an employee shall not be treated as
terminated--
``(i) by a transaction to which section
381(a) applies if the employee continues to be
employed by the acquiring corporation, or
``(ii) by reason of a mere change in the
form of conducting the trade or business of the
taxpayer if the employee continues to be
employed in such trade or business and the
taxpayer retains a substantial interest in such
trade or business.
``(d) High-Tech.--For purposes of this section, the term `high-
tech' means, with respect to services or a trade or business, the
latest developments and advances within the area of information and
communication technology services.
``(e) Wages.--For purposes of this section--
``(1) In general.--The term `wages' has the same meaning as
when used in section 51.
``(2) Certain training and educational benefits.--
``(A) In general.--The following amounts shall be
treated as wages paid to an employee:
``(i) Any amount paid or incurred by an
employer which is excludable from the gross
income of an employee under section 127, but
only to the extent paid or incurred to a person
not related to the employer.
``(ii) In the case of an employee who has
not attained the age of 19, any amount paid or
incurred by an employer for any youth training
program operated by such employer in
conjunction with local education officials.
``(B) Related person.--A person is related to any
other person if the person bears a relationship to such
other person specified in section 267(b) or 707(b)(1),
or such person and such other person are engaged in
trades or businesses under common control (within the
meaning of subsections (a) and (b) of section 52). For
purposes of the preceding sentence, in applying section
267(b) or 707(b)(1), `10 percent' shall be substituted
for `50 percent'.
``(f) Controlled Groups.--For purposes of this section.--
``(1) all employers treated as a single employer under
subsection (a) or (b) of section 52 shall be treated as a
single employer for purposes of this section, and
``(2) the credit (if any) determined under this section
with respect to each such employer shall be its proportionate
share of the wages giving rise to such credit.
``(g) Certain Other Rules Made Applicable.--For purposes of this
section, rules similar to the rules of section 51(k) and subsections
(c), (d), and (e) of section 52 shall apply.''
(b) Credit Made Part of General Business Credit.--
(1) In general.--Subsection (b) of section 38 of such Code
is amended by striking ``plus'' at the end of paragraph (14),
by striking the period at the end of paragraph (15) and
inserting ``, plus'', and by adding at the end the following
new paragraph:
``(16) the rural high-tech employment credit determined
under section 45G(a).''.
(2) Limitation on carryback.--Subsection (d) of section 39
of such Code is amended by adding at the end the following new
paragraph:
``(11) No carryback of rural high-tech employment credit
before january 1, 2001.--No portion of the unused business
credit for any taxable year which is attributable to the credit
under section 45G may be carried back to a taxable year ending
before January 1, 2001.''.
(c) Deduction for Unused Credit.--Subsection (c) of section 196 of
such Code is amended by striking ``and'' at the end of paragraph (9),
by striking the period at the end of paragraph (10) and inserting ``,
and'', and by adding at the end the following new paragraph:
``(11) the rural high-tech employment credit determined
under section 45G(a).''.
(d) Clerical Amendment.--The table of sections for subpart D of
part IV of subchapter A of chapter 1 of such Code is amended by adding
at the end the following new item:
``Sec. 45G. Employers who hire high-tech
employees residing in rural
areas.''.
(e) Effective Date.--The amendments made by this section shall
apply to individuals who begin work for the employer after the date of
the enactment of this Act.
TITLE VI--RURAL TECHNOLOGY EDUCATION PROGRAM.
SEC. 601. ESTABLISHMENT OF PROGRAM.
The Higher Education Act of 1965 is amended by adding after title
VII (20 U.S.C. 1134 et seq.) the following new title:
``TITLE VIII--RURAL TECHNOLOGY EDUCATION
``SEC. 801. PROGRAM AUTHORIZED.
``From the funds appropriated under section 805, the Secretary is
authorized to make competitive grants to eligible recipients to support
the expansion of opportunities in rural areas for instruction in high
technology fields and enterprises.
``SEC. 802. ELIGIBLE RECIPIENTS.
``The Secretary may make grants under this title to the following
eligible recipients:
``(1) an institution of higher education located in a rural
area;
``(2) a State educational agency, or other agency of a
State, that provides educational services in rural areas;
``(3) a private nonprofit entity that the Secretary of
education certifies is eligible for purposes of this title; and
``(4) a consortium composed of two or more of the
institutions, agencies, or entities described in paragraphs
(1), (2), and (3).
``SEC. 803. SELECTION OF GRANT RECIPIENTS.
``In selecting eligible recipients for the award of a grant under
this title, the Secretary shall award grants to those eligible
recipients whose grant applications demonstrate the greatest promise of
placing graduating students from rural areas in occupations in high
technology fields and enterprises.
``SEC. 804. APPLICATIONS.
``An eligible recipient that desires to obtain a grant under this
title shall submit to the Secretary an application at such time, in
such manner, and containing or accompanied by such information and
assurances as the Secretary may require to carry out the purposes of
this title. Such application shall contain--
``(1) a description of the uses to be made of the funds
provided under title, which may include salaries, equipment,
software, course development expenses, and staff training;
``(2) assurances that the applicant will provide a follow-
up evaluation and report within 6 months after the end of the
period covered by the grant award; and
``(3) such other information as the Secretary requires to
carry out this title.
``SEC. 805. AUTHORIZATION OF APPROPRIATIONS.
There are authorized to be appropriated to make grants under this
title $100,000,000 for each of the fiscal years 2002 through 2006.
``SEC. 806. DEFINITIONS.
``For purposes of this title:
``(1) Rural areas.--The term `rural areas' any incorporated
or unincorporated place--
``(A) that has not more than 35,000 inhabitants,
based on the most recent available population
statistics of the Bureau of the Census; and
``(B) that is not located in an area designated as
a Metropolitan Area by the Office of Management and
Budget.
``(2) high technology fields and enterprises.--The term
`high technology fields and enterprises' means fields and
enterprises related to the use and development of the Internet,
telecommunications and computer technology, and any other field
or enterprise designated by regulation for the purposes of this
title by the Secretary.''.
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