110 HR 5682 IH: Rural America Communication Expansion
U.S. House of Representatives
2008-04-02
text/xml
EN
Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain.
1.This Act may be cited as the
Rural America Communication Expansion
for the Future Act of 2008
.
<enum>I</enum><header>Tax
incentives for broadband services in rural and underserved areas</header>
<section commented="no" display-inline="no-display-inline" id="HE2EECA69A57447A5ADAFC5BC565A64F" section-type="subsequent-section"><enum>101.</enum><header>Expensing of
broadband Internet access expenditures</header>
<subsection commented="no" display-inline="no-display-inline" id="H96367AE8561146DCBE71A9EE91F6F340"><enum>(a)</enum><header>In
general</header><text display-inline="yes-display-inline">Part VI of subchapter
B of <external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/26/1">chapter 1</external-xref> of the Internal Revenue Code of 1986 (relating to itemized
deductions for individuals and corporations) is amended by inserting after
section 190 the following new section:</text>
<quoted-block display-inline="no-display-inline" id="H76EF0D888EE143F5853CC63C6FB124F1" style="OLC">
<section commented="no" display-inline="no-display-inline" id="H23F50C1AD0AF419F9C1175885E00DE18" section-type="subsequent-section"><enum>191.</enum><header>Broadband
expenditures</header>
<subsection commented="no" display-inline="no-display-inline" id="HF23A186E7048492FB164F0FB1662348E"><enum>(a)</enum><header>Treatment of
expenditures</header>
<paragraph commented="no" display-inline="no-display-inline" id="H2DB2903BFFEB48D1A604BF6076DFCB0"><enum>(1)</enum><header>In
general</header><text display-inline="yes-display-inline">A taxpayer may elect
to treat any qualified broadband expenditure which is paid or incurred by the
taxpayer as an expense which is not chargeable to capital account. Any
expenditure which is so treated shall be allowed as a deduction.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H38069A06EBE446678F939674AE8D0518"><enum>(2)</enum><header>Election</header><text display-inline="yes-display-inline">An election under paragraph (1) shall be
made at such time and in such manner as the Secretary may prescribe by
regulation.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="H2860D586EEB44F84A002B68588ED39D4"><enum>(b)</enum><header>Qualified
broadband expenditures</header><text display-inline="yes-display-inline">For
purposes of this section—</text>
<paragraph commented="no" display-inline="no-display-inline" id="H290546F7E8294BCBA99C202566CEECDC"><enum>(1)</enum><header>In
general</header><text display-inline="yes-display-inline">The term
<term>qualified broadband expenditure</term> means, with respect to any taxable
year, any direct or indirect costs incurred after the date of the enactment of
this section and before the date which is 4 years after such date and properly
taken into account with respect to—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="H65189A2C4DD6433ABDA2404265CEB461"><enum>(A)</enum><text display-inline="yes-display-inline">the purchase or installation of qualified
equipment (including any upgrades thereto), and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H7205D99D719C41ACA0CDBEDD5900054"><enum>(B)</enum><text display-inline="yes-display-inline">the connection of such qualified equipment
to any qualified subscriber.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H7417F43A00144A8B8CBE40F70078BF00"><enum>(2)</enum><header>Certain
satellite expenditures excluded</header><text display-inline="yes-display-inline">Such term shall not include any costs
incurred with respect to the launching of any satellite equipment.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H17B7C4357E984258003C79BEDA863C1D"><enum>(3)</enum><header>Leased
equipment</header><text display-inline="yes-display-inline">Such term shall
include so much of the purchase price paid by the lessor of qualified equipment
subject to a lease described in subsection (c)(2)(B) as is attributable to
expenditures incurred by the lessee which would otherwise be described in
paragraph (1).</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H0BFB5812C3054A36B7217243BE68B3B"><enum>(4)</enum><header>Limitation with
regard to current generation broadband services</header><text display-inline="yes-display-inline">Only 50 percent of the amounts taken into
account under paragraph (1) with respect to qualified equipment through which
current generation broadband services are provided shall be treated as
qualified broadband expenditures.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="HABAEAC7AAB114D89B4FE43859DBDE5AD"><enum>(c)</enum><header>When
expenditures taken into account</header><text display-inline="yes-display-inline">For purposes of this section—</text>
<paragraph commented="no" display-inline="no-display-inline" id="H291ACC7017144747A4AF93DDD9C423BA"><enum>(1)</enum><header>In
general</header><text display-inline="yes-display-inline">Qualified broadband
expenditures with respect to qualified equipment shall be taken into account
with respect to the first taxable year in which—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="HD006E8D99DB94BBC97106548DAC5286C"><enum>(A)</enum><text display-inline="yes-display-inline">current generation broadband services are
provided through such equipment to qualified subscribers, or</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H1278BF7F660F4A9A89C10517A45E21D"><enum>(B)</enum><text display-inline="yes-display-inline">next generation broadband services are
provided through such equipment to qualified subscribers.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H1585A8F7B16A4DB599A1FA77D4AC240"><enum>(2)</enum><header>Limitation</header>
<subparagraph commented="no" display-inline="no-display-inline" id="HA166725CFFE44E9ABF02905779CE056"><enum>(A)</enum><header>In
general</header><text display-inline="yes-display-inline">Qualified
expenditures shall be taken into account under paragraph (1) only with respect
to qualified equipment—</text>
<clause commented="no" display-inline="no-display-inline" id="H860FACC5593C45A2A528797E95535B8F"><enum>(i)</enum><text display-inline="yes-display-inline">the original use of which commences with
the taxpayer, and</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H06C6B6AE4AF747929CF7FF4D37513115"><enum>(ii)</enum><text display-inline="yes-display-inline">which is placed in service, after the date
of the enactment of this section.</text>
</clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H822BF573EA4E46B8B172B81388AB12BB"><enum>(B)</enum><header>Sale-leasebacks</header><text display-inline="yes-display-inline">For purposes of subparagraph (A), if
property—</text>
<clause commented="no" display-inline="no-display-inline" id="HC5F90037918A4808B92084464655B029"><enum>(i)</enum><text display-inline="yes-display-inline">is originally placed in service after the
date of the enactment of this section by any person, and</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H49DEFB33B72740A2A3771B9BA769D500"><enum>(ii)</enum><text display-inline="yes-display-inline">sold and leased back by such person within
3 months after the date such property was originally placed in service,</text>
</clause><continuation-text commented="no" continuation-text-level="subparagraph">such property shall be treated as
originally placed in service not earlier than the date on which such property
is used under the leaseback referred to in clause (ii).</continuation-text></subparagraph></paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="HB57E8BF85F9841098063E6569FCACB86"><enum>(d)</enum><header>Special
allocation rules</header>
<paragraph commented="no" display-inline="no-display-inline" id="HDBCB53A8307D4D21B751AA18CD4337DE"><enum>(1)</enum><header>Current
generation broadband services</header><text display-inline="yes-display-inline">For purposes of determining the amount of
qualified broadband expenditures under subsection (a)(1) with respect to
qualified equipment through which current generation broadband services are
provided, if the qualified equipment is capable of serving both qualified
subscribers and other subscribers, the qualified broadband expenditures shall
be multiplied by a fraction—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="H963A4F3F2BA649429EEA18C664614B79"><enum>(A)</enum><text display-inline="yes-display-inline">the numerator of which is the sum of the
number of potential qualified subscribers within the rural areas and the
underserved areas which the equipment is capable of serving with current
generation broadband services, and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HA886E7906389495B98248758DBDB163C"><enum>(B)</enum><text display-inline="yes-display-inline">the denominator of which is the total
potential subscriber population of the area which the equipment is capable of
serving with current generation broadband services.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H8C4C8A45610749779F42656F229B7931"><enum>(2)</enum><header>Next generation
broadband services</header><text display-inline="yes-display-inline">For
purposes of determining the amount of qualified broadband expenditures under
subsection (a)(1) with respect to qualified equipment through which next
generation broadband services are provided, if the qualified equipment is
capable of serving both qualified subscribers and other subscribers, the
qualified expenditures shall be multiplied by a fraction—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="H6983131E6702424385CA5444DF028BF7"><enum>(A)</enum><text display-inline="yes-display-inline">the numerator of which is the sum
of—</text>
<clause commented="no" display-inline="no-display-inline" id="HE412D51B6444413381A9B1D1F3D96EC"><enum>(i)</enum><text display-inline="yes-display-inline">the number of potential qualified
subscribers within the rural areas and underserved areas, plus</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H6372CE2BFC294546BB9BA9D79C31003D"><enum>(ii)</enum><text display-inline="yes-display-inline">the number of potential qualified
subscribers within the area consisting only of residential subscribers not
described in clause (i),</text>
</clause><continuation-text commented="no" continuation-text-level="subparagraph">which the equipment is capable of
serving with next generation broadband services, and</continuation-text></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H76312C2E9D8D4C218DC300AC91EBD8"><enum>(B)</enum><text display-inline="yes-display-inline">the denominator of which is the total
potential subscriber population of the area which the equipment is capable of
serving with next generation broadband services.</text>
</subparagraph></paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="H74CECDE1CC984C4B8427E747B66545F5"><enum>(e)</enum><header>Definitions</header><text display-inline="yes-display-inline">For purposes of this section—</text>
<paragraph commented="no" display-inline="no-display-inline" id="HFFD027CE21AD47A493E3DA826443C98"><enum>(1)</enum><header>Antenna</header><text display-inline="yes-display-inline">The term <term>antenna</term> means any
device used to transmit or receive signals through the electromagnetic
spectrum, including satellite equipment.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H251087AA52F04E75A78F1B44EB57E59C"><enum>(2)</enum><header>Cable
operator</header><text display-inline="yes-display-inline">The term <term>cable
operator</term> has the meaning given such term by section 602(5) of the
<act-name parsable-cite="CA34">Communications Act of 1934</act-name> (47 U.S.C.
522(5)).</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H690F8541650C4F5B8C7EAA2BEAF7A47E"><enum>(3)</enum><header>Commercial
mobile service carrier</header><text display-inline="yes-display-inline">The
term <term>commercial mobile service carrier</term> means any person authorized
to provide commercial mobile radio service as defined in section 20.3 of title
47, Code of Federal Regulations.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H1E6D5269A3994F47B40064E4657DDEFD"><enum>(4)</enum><header>Current
generation broadband service</header><text display-inline="yes-display-inline">The term <term>current generation broadband
service</term> means the transmission of signals at a rate of at least
5,000,000 bits per second to the subscriber and at least 1,000,000 bits per
second from the subscriber.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HB00698D0436E43459517C3AE24FC005E"><enum>(5)</enum><header>Multiplexing or
demultiplexing</header><text display-inline="yes-display-inline">The term
<term>multiplexing</term> means the transmission of 2 or more signals over a
single channel, and the term <term>demultiplexing</term> means the separation
of 2 or more signals previously combined by compatible multiplexing
equipment.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H5DC78CE9853F46C084668B7BC7370053"><enum>(6)</enum><header>Next generation
broadband Service</header><text display-inline="yes-display-inline">The term
<term>next generation broadband service</term> means the transmission of
signals at a rate of at least 50,000,000 bits per second to the subscriber and
at least 10,000,000 bits per second from the subscriber.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H8A5C5971946D4B0FAADE916B592C1100"><enum>(7)</enum><header>Nonresidential
subscriber</header><text display-inline="yes-display-inline">The term
<term>nonresidential subscriber</term> means any person who purchases broadband
services which are delivered to the permanent place of business of such
person.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H9D754EE5D80E46B5BA69B0B956012E88"><enum>(8)</enum><header>Open video
system operator</header><text display-inline="yes-display-inline">The term
<term>open video system operator</term> means any person authorized to provide
service under section 653 of the <act-name parsable-cite="CA34">Communications
Act of 1934</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/47/573">47 U.S.C. 573</external-xref>).</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H0475437B83EC41AFAA08BE6101FF00AE"><enum>(9)</enum><header>Other wireless
carrier</header><text display-inline="yes-display-inline">The term <term>other
wireless carrier</term> means any person (other than a telecommunications
carrier, commercial mobile service carrier, cable operator, open video system
operator, or satellite carrier) providing current generation broadband service
or next generation broadband service to subscribers through the radio
transmission of energy.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H8B925500BB6145A2B5D90984D7704BBB"><enum>(10)</enum><header>Packet
switching</header><text display-inline="yes-display-inline">The term
<term>packet switching</term> means controlling or routing the path of any
digitized transmission signal which is assembled into packets or cells.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H7E3269F739C14589BE88FBCE2B008956"><enum>(11)</enum><header>Provider</header><text display-inline="yes-display-inline">The term <term>provider</term> means, with
respect to any qualified equipment—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="H56A649397FEE4493B7AE8DF9100C71D"><enum>(A)</enum><text display-inline="yes-display-inline">a cable operator,</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HDDA325EC6C544AC9AF101336049849DC"><enum>(B)</enum><text display-inline="yes-display-inline">a commercial mobile service carrier,</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H9B13B548FDA34C4696EF990070A06539"><enum>(C)</enum><text display-inline="yes-display-inline">an open video system operator,</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H9E63870DE8194ED48844ED716339F54D"><enum>(D)</enum><text display-inline="yes-display-inline">a satellite carrier,</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HCF099D4585B2479D942E00A7FFAF1390"><enum>(E)</enum><text display-inline="yes-display-inline">a telecommunications carrier, or</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H68A207A4E4FF4DDCA4C6E098755799E4"><enum>(F)</enum><text display-inline="yes-display-inline">any other wireless carrier,</text>
</subparagraph><continuation-text commented="no" continuation-text-level="paragraph">providing current generation
broadband services or next generation broadband services to subscribers through
such qualified equipment.</continuation-text></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H0E0F8DA6DCB14451A8AC3EC12568C159"><enum>(12)</enum><header>Provision of
services</header><text display-inline="yes-display-inline">A provider shall be
treated as providing services to 1 or more subscribers if—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="H086EBCB94A5B437684CCF88CD7E4C01D"><enum>(A)</enum><text display-inline="yes-display-inline">such a subscriber has been passed by the
provider’s equipment and can be connected to such equipment for a standard
connection fee,</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H288E7EDF871A42E586006347094B3EFC"><enum>(B)</enum><text display-inline="yes-display-inline">the provider is physically able to deliver
current generation broadband services or next generation broadband services, as
applicable, to such a subscriber without making more than an insignificant
investment with respect to such subscriber,</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H72B67DCEB2D143E48D5B26591FC0F569"><enum>(C)</enum><text display-inline="yes-display-inline">the provider has made reasonable efforts to
make such subscribers aware of the availability of such services,</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HE0B45E2BE4DB436BAADBFE9D24766F7E"><enum>(D)</enum><text display-inline="yes-display-inline">such services have been purchased by 1 or
more such subscribers, and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HDED8422BEEE14FC9809241ABF7D14209"><enum>(E)</enum><text display-inline="yes-display-inline">such services are made available to such
subscribers at average prices comparable to those at which the provider makes
available similar services in any areas in which the provider makes available
such services.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H9A9AED5D60654842893D5E36BFC042DA"><enum>(13)</enum><header>Qualified
equipment</header>
<subparagraph commented="no" display-inline="no-display-inline" id="H1D83FA48A429426BA4A267368D734B06"><enum>(A)</enum><header>In
general</header><text display-inline="yes-display-inline">The term
<term>qualified equipment</term> means equipment which provides current
generation broadband services or next generation broadband services—</text>
<clause commented="no" display-inline="no-display-inline" id="H9A3465C016504951873D214D4DE5323"><enum>(i)</enum><text display-inline="yes-display-inline">at least a majority of the time during
periods of maximum demand to each subscriber who is utilizing such services,
and</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H62A411AE321847CA007F47DFACCFC330"><enum>(ii)</enum><text display-inline="yes-display-inline">in a manner substantially the same as such
services are provided by the provider to subscribers through equipment with
respect to which no deduction is allowed under subsection (a)(1).</text>
</clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H47333634529D47BCABAD4646757088DB"><enum>(B)</enum><header>Only certain
investment taken into account</header><text display-inline="yes-display-inline">Except as provided in subparagraph (C) or
(D), equipment shall be taken into account under subparagraph (A) only to the
extent it—</text>
<clause commented="no" display-inline="no-display-inline" id="H393E00CAFED742D2A3006CEC8020C379"><enum>(i)</enum><text display-inline="yes-display-inline">extends from the last point of switching to
the outside of the unit, building, dwelling, or office owned or leased by a
subscriber in the case of a telecommunications carrier,</text>
</clause><clause commented="no" display-inline="no-display-inline" id="HC5CC2D69D75D442C00C554C8088D70CA"><enum>(ii)</enum><text display-inline="yes-display-inline">extends from the customer side of the
mobile telephone switching office to a transmission/receive antenna (including
such antenna) owned or leased by a subscriber in the case of a commercial
mobile service carrier,</text>
</clause><clause commented="no" display-inline="no-display-inline" id="HD6E61C6A4FBD4A04A5F750F00824DDC1"><enum>(iii)</enum><text display-inline="yes-display-inline">extends from the customer side of the
headend to the outside of the unit, building, dwelling, or office owned or
leased by a subscriber in the case of a cable operator or open video system
operator, or</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H0093013B220F4163A8F4FA5C6E03331C"><enum>(iv)</enum><text display-inline="yes-display-inline">extends from a transmission/receive antenna
(including such antenna) which transmits and receives signals to or from
multiple subscribers, to a transmission/receive antenna (including such
antenna) on the outside of the unit, building, dwelling, or office owned or
leased by a subscriber in the case of a satellite carrier or other wireless
carrier, unless such other wireless carrier is also a telecommunications
carrier.</text>
</clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HD9F9A0AA82A64B32A923953800ECF305"><enum>(C)</enum><header>Packet switching
equipment</header><text display-inline="yes-display-inline">Packet switching
equipment, regardless of location, shall be taken into account under
subparagraph (A) only if it is deployed in connection with equipment described
in subparagraph (B) and is uniquely designed to perform the function of packet
switching for current generation broadband services or next generation
broadband services, but only if such packet switching is the last in a series
of such functions performed in the transmission of a signal to a subscriber or
the first in a series of such functions performed in the transmission of a
signal from a subscriber.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H0B5D289AE883481DA6AF5900FB9713B"><enum>(D)</enum><header>Multiplexing and
demultiplexing equipment</header><text display-inline="yes-display-inline">Multiplexing and demultiplexing equipment
shall be taken into account under subparagraph (A) only to the extent it is
deployed in connection with equipment described in subparagraph (B) and is
uniquely designed to perform the function of multiplexing and demultiplexing
packets or cells of data and making associated application adaptions, but only
if such multiplexing or demultiplexing equipment is located between packet
switching equipment described in subparagraph (C) and the subscriber’s
premises.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H114FF7D62D2E40C1A15B32A9538496D2"><enum>(14)</enum><header>Qualified
subscriber</header><text display-inline="yes-display-inline">The term
<term>qualified subscriber</term> means—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="H8FAD060C955E41FF8C40D718C05C3DDA"><enum>(A)</enum><text display-inline="yes-display-inline">with respect to the provision of current
generation broadband services—</text>
<clause commented="no" display-inline="no-display-inline" id="H2CCF751CC0134D5498EE3692A6951F15"><enum>(i)</enum><text display-inline="yes-display-inline">any nonresidential subscriber maintaining a
permanent place of business in a rural area or underserved area, or</text>
</clause><clause commented="no" display-inline="no-display-inline" id="HC58062EFA0A847AFB07D38868652FFB2"><enum>(ii)</enum><text display-inline="yes-display-inline">any residential subscriber residing in a
dwelling located in a rural area or underserved area which is not a saturated
market, and</text>
</clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H2FDC15AB0D894BEFAC2C1E57DA43C82"><enum>(B)</enum><text display-inline="yes-display-inline">with respect to the provision of next
generation broadband services—</text>
<clause commented="no" display-inline="no-display-inline" id="HEB2A1DCCFE374DB8888CD478FDC4200"><enum>(i)</enum><text display-inline="yes-display-inline">any nonresidential subscriber maintaining a
permanent place of business in a rural area or underserved area, or</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H2B1957325E4944149000CF8B483F45BF"><enum>(ii)</enum><text display-inline="yes-display-inline">any residential subscriber.</text>
</clause></subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H4562544DC0734A559C6756CDF19BF700"><enum>(15)</enum><header>Residential
subscriber</header><text display-inline="yes-display-inline">The term
<term>residential subscriber</term> means any individual who purchases
broadband services which are delivered to such individual’s dwelling.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H926A468F61B74AF3A75CC6E462913C6"><enum>(16)</enum><header>Rural
area</header><text display-inline="yes-display-inline">The term <term>rural
area</term> means any census tract which—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="H8A9086DF16AF40E69D86AF2C9F81B81"><enum>(A)</enum><text display-inline="yes-display-inline">is not within 10 miles of any incorporated
or census designated place containing more than 25,000 people, and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H738EB060AC7046FF868FDEFDDDFAAC00"><enum>(B)</enum><text display-inline="yes-display-inline">is not within a county or county equivalent
which has an overall population density of more than 500 people per square mile
of land.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H775690CD71184CD4A1B7B960B01E1702"><enum>(17)</enum><header>Rural
subscriber</header><text display-inline="yes-display-inline">The term
<term>rural subscriber</term> means any residential subscriber residing in a
dwelling located in a rural area or nonresidential subscriber maintaining a
permanent place of business located in a rural area.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H486A4E7C90E3466EBA00A3073C1D9114"><enum>(18)</enum><header>Satellite
carrier</header><text display-inline="yes-display-inline">The term
<term>satellite carrier</term> means any person using the facilities of a
satellite or satellite service licensed by the Federal Communications
Commission and operating in the Fixed-Satellite Service under part 25 of title
47 of the Code of Federal Regulations or the Direct Broadcast Satellite Service
under part 100 of title 47 of such Code to establish and operate a channel of
communications for distribution of signals, and owning or leasing a capacity or
service on a satellite in order to provide such point-to-multipoint
distribution.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H2710AC4B59C54A87AC0500464D1E8FBC"><enum>(19)</enum><header>Saturated
market</header><text display-inline="yes-display-inline">The term
<term>saturated market</term> means any census tract in which, as of the date
of the enactment of this section—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="H644A60C383AF4D6FA0DECDA328E1A3BF"><enum>(A)</enum><text display-inline="yes-display-inline">current generation broadband services have
been provided by a single provider to 85 percent or more of the total number of
potential residential subscribers residing in dwellings located within such
census tract, and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H4F077B03642B4798B9495D7EC4542920"><enum>(B)</enum><text display-inline="yes-display-inline">such services can be utilized—</text>
<clause commented="no" display-inline="no-display-inline" id="HD778830459874140B2DF7B681892667B"><enum>(i)</enum><text display-inline="yes-display-inline">at least a majority of the time during
periods of maximum demand by each such subscriber who is utilizing such
services, and</text>
</clause><clause commented="no" display-inline="no-display-inline" id="HEA9FF37C367C4669B3DE6CE5EE380052"><enum>(ii)</enum><text display-inline="yes-display-inline">in a manner substantially the same as such
services are provided by the provider to subscribers through equipment with
respect to which no deduction is allowed under subsection (a)(1).</text>
</clause></subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H18D625149EEC43C0AAEEDE064F7994EB"><enum>(20)</enum><header>Subscriber</header><text display-inline="yes-display-inline">The term <term>subscriber</term> means any
person who purchases current generation broadband services or next generation
broadband services.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H79604D0E955D4A2DB839356DD77F8FC0"><enum>(21)</enum><header>Telecommunications
carrier</header><text display-inline="yes-display-inline">The term
<term>telecommunications carrier</term> has the meaning given such term by
section 3(44) of the <act-name parsable-cite="CA34">Communications Act of
1934</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/47/153">47 U.S.C. 153(44)</external-xref>), but—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="HEEB49809246C4442A8F1DB70A950FC94"><enum>(A)</enum><text display-inline="yes-display-inline">includes all members of an affiliated group
of which a telecommunications carrier is a member, and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H42FFEF19A0724539005EB417BC362FD"><enum>(B)</enum><text display-inline="yes-display-inline">does not include a commercial mobile
service carrier.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H8301AC3F9F284A58ADF4026CB690DD85"><enum>(22)</enum><header>Total potential
subscriber population</header><text display-inline="yes-display-inline">The
term <term>total potential subscriber population</term> means, with respect to
any area and based on the most recent census data, the total number of
potential residential subscribers residing in dwellings located in such area
and potential nonresidential subscribers maintaining permanent places of
business located in such area.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HA97740F20996499B9300034FF848601C"><enum>(23)</enum><header>Underserved
area</header><text display-inline="yes-display-inline">The term
<term>underserved area</term> means—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="H781BE5D851514AF20005D2381F43E34F"><enum>(A)</enum><text display-inline="yes-display-inline">any census tract which is located
in—</text>
<clause commented="no" display-inline="no-display-inline" id="H3B8C48F7CC914005BC4993920810E507"><enum>(i)</enum><text display-inline="yes-display-inline">an empowerment zone or enterprise community
designated under section 1391, or</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H82F9D7BD344D4A70A3EF3CE650E6CBB"><enum>(ii)</enum><text display-inline="yes-display-inline">the District of Columbia Enterprise Zone
established under section 1400, or</text>
</clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H1776382747BD47DBB1AF3E5439565EF9"><enum>(B)</enum><text display-inline="yes-display-inline">any census tract—</text>
<clause commented="no" display-inline="no-display-inline" id="H2F17AC610D434CF18FA287BF37581628"><enum>(i)</enum><text display-inline="yes-display-inline">the poverty level of which is at least 30
percent (based on the most recent census data), and</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H708389DE7B7346DAADD441C7D63E9CA"><enum>(ii)</enum><text display-inline="yes-display-inline">the median family income of which does not
exceed—</text>
<subclause commented="no" display-inline="no-display-inline" id="HA7A8B938781949DF89DBE8CD8D2E3B94"><enum>(I)</enum><text display-inline="yes-display-inline">in the case of a census tract located in a
metropolitan statistical area, 70 percent of the greater of the metropolitan
area median family income or the statewide median family income, and</text>
</subclause><subclause commented="no" display-inline="no-display-inline" id="H54E7FA53B8B6490690A015F8DC24777"><enum>(II)</enum><text display-inline="yes-display-inline">in the case of a census tract located in a
nonmetropolitan statistical area, 70 percent of the nonmetropolitan statewide
median family income.</text>
</subclause></clause></subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H34FA5C1F408B44F384ABEA65ABFF8740"><enum>(24)</enum><header>Underserved
subscriber</header><text display-inline="yes-display-inline">The term
<term>underserved subscriber</term> means any residential subscriber residing
in a dwelling located in an underserved area or nonresidential subscriber
maintaining a permanent place of business located in an underserved
area.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="HE3B976F6961B41C9880702DECA00F344"><enum>(f)</enum><header>Special
rules</header>
<paragraph commented="no" display-inline="no-display-inline" id="HD9F4C8D58B0243A4A8D00287AED85321"><enum>(1)</enum><header>Property used
outside the United States, etc., not qualified</header><text display-inline="yes-display-inline">No expenditures shall be taken into account
under subsection (a)(1) with respect to the portion of the cost of any property
referred to in section 50(b) or with respect to the portion of the cost of any
property specified in an election under section 179.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H943480FD59AB4D618642851C3E64DBAA"><enum>(2)</enum><header>Basis
reduction</header>
<subparagraph commented="no" display-inline="no-display-inline" id="H6896D2F31E664AD8BE64A675B0F8FDE1"><enum>(A)</enum><header>In
general</header><text display-inline="yes-display-inline">For purposes of this
title, the basis of any property shall be reduced by the portion of the cost of
such property taken into account under subsection (a)(1).</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H9FC192CC40FC46BF9EE68D182699FD5C"><enum>(B)</enum><header>Ordinary income
recapture</header><text display-inline="yes-display-inline">For purposes of
section 1245, the amount of the deduction allowable under subsection (a)(1)
with respect to any property which is of a character subject to the allowance
for depreciation shall be treated as a deduction allowed for depreciation under
section 167.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H327A5D19CB454B20A649A312AECD6C18"><enum>(3)</enum><header>Coordination
with Section <enum-in-header>38</enum-in-header></header><text display-inline="yes-display-inline">No credit shall be allowed under section 38
with respect to any amount for which a deduction is allowed under subsection
(a)(1).</text>
</paragraph></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection commented="no" display-inline="no-display-inline" id="HB9E4C4BD4A5F4A9B83E3900F0B69043"><enum>(b)</enum><header>Special rule for
mutual or cooperative telephone companies</header><text display-inline="yes-display-inline">Section 512(b) of the Internal Revenue Code
of 1986 (relating to modifications) is amended by adding at the end the
following new paragraph:</text>
<quoted-block display-inline="no-display-inline" id="HA7C017D7C9354AC5A45B67D320705969" style="OLC">
<paragraph commented="no" display-inline="no-display-inline" id="HA2FD3B2B4FC54349A13504A9D817665"><enum>(20)</enum><header>Special rule for
mutual or cooperative telephone companies</header><text display-inline="yes-display-inline">A mutual or cooperative telephone company
which for the taxable year satisfies the requirements of section 501(c)(12)(A)
may elect to reduce its unrelated business taxable income for such year, if
any, by an amount that does not exceed the qualified broadband expenditures
which would be taken into account under section 191 for such year by such
company if such company was not exempt from taxation. Any amount which is
allowed as a deduction under this paragraph shall not be allowed as a deduction
under section 191 and the basis of any property to which this paragraph applies
shall be reduced under section
1016(a)(38).</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection commented="no" display-inline="no-display-inline" id="H807C41DAFC2843EAB292FD1C65DD0187"><enum>(c)</enum><header>Conforming
amendments</header>
<paragraph commented="no" display-inline="no-display-inline" id="H83895F82E4664CD08F4EED007028C2AF"><enum>(1)</enum><text display-inline="yes-display-inline">Section 263(a)(1) of the Internal Revenue
Code of 1986 (relating to capital expenditures) is amended by striking
<quote>or</quote> at the end of subparagraph (J), by striking the period at the
end of subparagraph (K) and inserting <quote>, or</quote>, and by adding at the
end the following new subparagraph:</text>
<quoted-block display-inline="no-display-inline" id="H6DB7ADAF0BB243D8BD6321EACDB9A0B8" style="OLC">
<subparagraph commented="no" display-inline="no-display-inline" id="H58B0232677594836AB15F8BF4B29538"><enum>(L)</enum><text display-inline="yes-display-inline">expenditures for which a deduction is
allowed under section
191.</text>
</subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H75CDB5C578184298A27DA1F0FC0091E5"><enum>(2)</enum><text display-inline="yes-display-inline">Section 1016(a) of such Code is amended by
striking <quote>and</quote> at the end of paragraph (36), by striking the
period at the end of paragraph (37) and inserting <quote>, and</quote>, and by
adding at the end the following new paragraph:</text>
<quoted-block display-inline="no-display-inline" id="H8A301E0844D9487984FFA807CB6EFE4F" style="OLC">
<paragraph commented="no" display-inline="no-display-inline" id="H9E3CF0F9E5B3406BB2FE51D1B59E6169"><enum>(38)</enum><text display-inline="yes-display-inline">to the extent provided in section
191(f)(2).</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H756993EE170E43C3992D42FF4E21C65C"><enum>(3)</enum><text display-inline="yes-display-inline">The table of sections for part VI of
subchapter A of chapter 1 of such Code is amended by inserting after the item
relating to section 190 the following new item:</text>
<quoted-block display-inline="no-display-inline" id="H98BB05CF54DD4FA5BAC163ACBED50280" style="OLC">
<toc regeneration="no-regeneration">
<toc-entry bold="off" level="section">Sec. 191. Broadband
expenditures.</toc-entry>
</toc>
<after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="HA5049635999F45FFB33ED107995F5C3E"><enum>(d)</enum><header>Designation of
census tracts</header>
<paragraph commented="no" display-inline="no-display-inline" id="H4C48009C11D74CC9A7476669F5E72B08"><enum>(1)</enum><header>In
general</header><text display-inline="yes-display-inline">The Secretary of the
Treasury shall, not later than 90 days after the date of the enactment of this
Act, designate and publish those census tracts meeting the criteria described
in paragraphs (16), (22), and (23) of section 191(e) of the Internal Revenue
Code of 1986 (as added by this section). In making such designations, the
Secretary of the Treasury shall consult with such other departments and
agencies as the Secretary determines appropriate.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HF48F0F77FBB046FCBC6FFED7AD028DE6"><enum>(2)</enum><header>Saturated
market</header>
<subparagraph commented="no" display-inline="no-display-inline" id="HF8FAE04656064EE09C486E88ED63D303"><enum>(A)</enum><header>In
general</header><text display-inline="yes-display-inline">For purposes of
designating and publishing those census tracts meeting the criteria described
in subsection (e)(19) of such section 191—</text>
<clause commented="no" display-inline="no-display-inline" id="HEF51BE1178F04343A28C94F869FE01C0"><enum>(i)</enum><text display-inline="yes-display-inline">the Secretary of the Treasury shall
prescribe not later than 30 days after the date of the enactment of this Act
the form upon which any provider which takes the position that it meets such
criteria with respect to any census tract shall submit a list of such census
tracts (and any other information required by the Secretary) not later than 60
days after the date of the publication of such form, and</text>
</clause><clause commented="no" display-inline="no-display-inline" id="HECE2DAB5087B47039570F8ACD8DB6314"><enum>(ii)</enum><text display-inline="yes-display-inline">the Secretary of the Treasury shall publish
an aggregate list of such census tracts and the applicable providers not later
than 30 days after the last date such submissions are allowed under clause
(i).</text>
</clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H3A6BC578DAD04E3386C9B3F421F5F6BB"><enum>(B)</enum><header>No subsequent
lists required</header><text display-inline="yes-display-inline">The Secretary
of the Treasury shall not be required to publish any list of census tracts
meeting such criteria subsequent to the list described in subparagraph
(A)(ii).</text>
</subparagraph></paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="H97D286E6C7A64FCF9021E904F1252D41"><enum>(e)</enum><header>Other regulatory
matters</header>
<paragraph commented="no" display-inline="no-display-inline" id="HE065027F917342A0861477A0FE30B43"><enum>(1)</enum><header>Prohibition</header><text display-inline="yes-display-inline">No Federal or State agency or
instrumentality shall adopt regulations or ratemaking procedures that would
have the effect of eliminating or reducing any deduction or portion thereof
allowed under <external-xref legal-doc="usc" parsable-cite="usc/26/191">section 191</external-xref> of the Internal Revenue Code of 1986 (as added by
this section) or otherwise subverting the purpose of this section.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HDECD80E4F03940FAADA1C0FD6BD99E4F"><enum>(2)</enum><header>Treasury
regulatory authority</header><text display-inline="yes-display-inline">It is
the intent of Congress in providing the election to deduct qualified broadband
expenditures under <external-xref legal-doc="usc" parsable-cite="usc/26/191">section 191</external-xref> of the Internal Revenue Code of 1986 (as added
by this section) to provide incentives for the purchase, installation, and
connection of equipment and facilities offering expanded broadband access to
the Internet for users in certain low income and rural areas of the United
States, as well as to residential users nationwide, in a manner that maintains
competitive neutrality among the various classes of providers of broadband
services. Accordingly, the Secretary of the Treasury shall prescribe such
regulations as may be necessary or appropriate to carry out the purposes of
section 191 of such Code, including—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="H2D35E881C79C4DD3B5E45976B35DD145"><enum>(A)</enum><text display-inline="yes-display-inline">regulations to determine how and when a
taxpayer that incurs qualified broadband expenditures satisfies the
requirements of section 191 of such Code to provide broadband services,
and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H4BA8B04E6B3C47C2B673D364A5A399B3"><enum>(B)</enum><text display-inline="yes-display-inline">regulations describing the information,
records, and data taxpayers are required to provide the Secretary to
substantiate compliance with the requirements of section 191 of such
Code.</text>
</subparagraph></paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="H4ED22A6E863F4475A26C02008722CACD"><enum>(f)</enum><header>Effective
date</header><text display-inline="yes-display-inline">The amendments made by
this section shall apply to expenditures incurred after the date of the
enactment of this Act.</text>
</subsection></section><section id="H1691715DB7454F54B9CD32BA82FAD6C6" section-type="subsequent-section"><enum>102.</enum><header>Credit for
operational expenses for wireless broadband networks serving rural or
underserved areas</header>
<subsection id="HD05ED5259D8D4CBF8D17E0971F1CBCF"><enum>(a)</enum><header>In
general</header><text>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:</text>
<quoted-block id="H1036B49F9E554861BEA8D59BB4FCAEF" style="OLC">
<section id="H26F0A80C27BF461693C433A19969C9C"><enum>45O.</enum><header>Credit for
operational expenses for wireless broadband networks serving rural or
underserved areas</header>
<subsection id="HA9290F3E5596480AAB2045CDFE7FCC35"><enum>(a)</enum><header>General
rule</header><text display-inline="yes-display-inline">For purposes of section
38, the wireless broadband operations credit determined under this section for
the taxable year is the amount equal to the qualified operational expenses of
the taxpayer for the taxable year.</text>
</subsection><subsection id="HC8E4BA769E74484AAE279909BA48E21"><enum>(b)</enum><header>Limitation</header><text>The
amount allowed as a credit under this section for a taxable year shall not
exceed $10,000.</text>
</subsection><subsection id="H71EC22D4A36947648E4D31E051E23862"><enum>(c)</enum><header>Qualified
operational expenses</header><text display-inline="yes-display-inline">For
purposes of this section—</text>
<paragraph id="H78C1EC70411143C1BDDA43342909EBA6"><enum>(1)</enum><header>In
general</header><text>The term <term>qualified operational expenses</term>
means amounts paid or incurred to provide broadband services in the United
States to rural subscribers or underserved subscribers through the radio
transmission of energy. Such amounts does not includes amounts properly
allocable to capital account.</text>
</paragraph><paragraph id="H29852A3F83FB46F8BDC289AD454FC823"><enum>(2)</enum><header>Broadband
services</header><text display-inline="yes-display-inline">The term
<term>broadband services</term> means the transmission of signals at a rate of
at least 5,000,000 bits per second to the subscriber and at least 1,000,000
bits per second from the subscriber.</text>
</paragraph><paragraph id="H304D2730CD0A435200C289B959048BF7"><enum>(3)</enum><header>Other
definitions</header><text>The terms <term>rural area</term>,
<term>subscriber</term>, <term>underserved area</term>, have the meanings given
the respective term by 191(e).</text>
</paragraph></subsection><subsection id="HB6C7EF26A4894E3898C3B74F692033DF"><enum>(d)</enum><header>Related
persons</header><text display-inline="yes-display-inline">For purposes of this
section, all persons treated as a single employer under subsection (a) or (b)
of section 52 shall be treated as a single taxpayer.</text>
</subsection><subsection id="HB383854D089B4EDAB0C415796DEC51F4"><enum>(e)</enum><header>Denial of double
benefit</header><text>For purposes of this section, no amount taken into
account as a deduction or credit under any other provision of this chapter
shall be taken into account under this
section.</text>
</subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="HA0DB61A3B9B74B63AA8550D9530075AB"><enum>(b)</enum><header>Credit treated
as business credit</header><text>Section 38(b) of such Code (relating to
current year business credit) is amended by striking <quote>plus</quote> at the
end of paragraph (30), by striking the period at the end of paragraph (31), and
inserting <quote>, plus</quote>, and by adding at the end the following:</text>
<quoted-block id="H763E6EC299144F0EB51643507213ADB6" style="OLC">
<paragraph id="H9BD3B19E36FF4C89A504D820786800F2"><enum>(32)</enum><text display-inline="yes-display-inline">the wireless broadband operations credit
determined under section
45O(a).</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="H6A2B49CD5CFF412CAC8708D0F544B9CF"><enum>(c)</enum><header>Clerical
amendment</header><text>The table of sections for subpart D of part IV of
subchapter A of chapter 1 of such Code is amended by at the end the
following:</text>
<quoted-block display-inline="no-display-inline" id="H78CC9AB90D5B45DAB411D20169EFAE29" style="OLC">
<toc container-level="quoted-block-container" idref="H1036B49F9E554861BEA8D59BB4FCAEF" lowest-bolded-level="division-lowest-bolded" lowest-level="section" quoted-block="no-quoted-block" regeneration="yes-regeneration">
<toc-entry idref="H26F0A80C27BF461693C433A19969C9C" level="section">Sec. 45O. Credit for operational expenses for wireless
broadband networks serving rural or underserved
areas.</toc-entry>
</toc>
<after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="HA9AA845732E5417681817E1F4DE43611"><enum>(d)</enum><header>Effective
date</header><text>The amendments made by this section shall apply to taxable
years beginning after the date of the enactment of this Act.</text>
</subsection></section><enum>II</enum><header>NTIA
Grant Program</header>
<section id="H529E19E0776A468C8B52C1CD3F3D8C"><enum>201.</enum><header>Establishment of
NTIA grant program for broadband deployment in rural and underserved
areas</header><text display-inline="no-display-inline">The National
Telecommunications and Information Administration Organization Act (47 U.S.C.
901 et seq.) is amended by adding at the end the following new section:</text>
<quoted-block display-inline="no-display-inline" id="H808EA27F6A6F4BBD9BBC3E19B9A399C9" style="OLC">
<section id="HC2AFA210ACBB42A0BE9848CE822F62F7"><enum>159.</enum><header>Rural Broadband
Deployment Grant Program</header>
<subsection id="HC30949E1826A43DAAE9FB74F5900F93C"><enum>(a)</enum><header>Establishment</header><text display-inline="yes-display-inline">The Secretary of Commerce, acting through
the NTIA, shall establish a competitive program to provide an eligible unit of
local government with a grant of not more than $75,000 to establish
publicly-available networks of broadband service.</text>
</subsection><subsection id="H5E6E28388C8946EB9884FAAA10A331D2"><enum>(b)</enum><header>Eligibility</header><text display-inline="yes-display-inline">In order to be eligible to receive a grant
under this section, an eligible unit of local government shall prepare and
submit an application at such time, in such form, and with such information and
assurances as the Secretary may require, including an assurance that the
eligible unit of local government will take such steps as are necessary to
maintain the equipment and devices, including hiring and training personnel, to
maintain the project for a 5-year period beginning on either the date when such
network is established or 1 year after the grant is received, whichever is
earlier.</text>
</subsection><subsection id="HCC0C8E7C3EE9403192D75CA9FD62DED"><enum>(c)</enum><header>Definitions</header><text>In
this section:</text>
<paragraph commented="no" id="H7745D1E9917F4027B3019575DCCFFE48"><enum>(1)</enum><header>Broadband
service</header><text display-inline="yes-display-inline">The term
<term>broadband service</term> means the transmission of signals at a rate of
at least 5,000,000 bits per second to the subscriber and at least 1,000,000
bits per second from the subscriber.</text>
</paragraph><paragraph id="H1403FF0AD11543A5BBAC54ED7102C97E"><enum>(2)</enum><header>Eligible Unit of
Local Government</header><text>The term <term>eligible unit of local
government</term> means a unit of local government that contains within its
jurisdiction at least one rural area or underserved area.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HF172A4D4222E4C70B16894D46E160228"><enum>(3)</enum><header>Rural
area</header><text display-inline="yes-display-inline">The term <term>rural
area</term> means any census tract which—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="H6EDAC9AA6742461DABC6C7EA32F206"><enum>(A)</enum><text display-inline="yes-display-inline">is not within 10 miles of any incorporated
or census designated place containing more than 25,000 people, and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H5CAF10361A374A2EBBB61CB45597E47B"><enum>(B)</enum><text display-inline="yes-display-inline">is not within a county or county equivalent
which has an overall population density of more than 500 people per square mile
of land.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H2DE31E0C612F4B0789CEC87BCFCB052E"><enum>(4)</enum><header>Underserved
area</header><text display-inline="yes-display-inline">The term
<term>underserved area</term> means—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="H99F79A034DB04245BE35ED8D23A82495"><enum>(A)</enum><text display-inline="yes-display-inline">any census tract which is located
in—</text>
<clause commented="no" display-inline="no-display-inline" id="H0BCE29EFA42C4E82B600590022137B8E"><enum>(i)</enum><text display-inline="yes-display-inline">an empowerment zone or enterprise community
designated under section 1391, or</text>
</clause><clause commented="no" display-inline="no-display-inline" id="HDCA8F694F5DC4552AA31ED6C00E85C10"><enum>(ii)</enum><text display-inline="yes-display-inline">the District of Columbia Enterprise Zone
established under section 1400, or</text>
</clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HFC3BE6204144414FA729D88D3E4F8600"><enum>(B)</enum><text display-inline="yes-display-inline">any census tract—</text>
<clause commented="no" display-inline="no-display-inline" id="HCD57142CB3E246C2A9555364923CFA8"><enum>(i)</enum><text display-inline="yes-display-inline">the poverty level of which is at least 30
percent (based on the most recent census data), and</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H88DB1D36505748BC9429C16FD9F970ED"><enum>(ii)</enum><text display-inline="yes-display-inline">the median family income of which does not
exceed—</text>
<subclause commented="no" display-inline="no-display-inline" id="HBE1D3F527B26409D976341620715E655"><enum>(I)</enum><text display-inline="yes-display-inline">in the case of a census tract located in a
metropolitan statistical area, 70 percent of the greater of the metropolitan
area median family income or the statewide median family income, and</text>
</subclause><subclause commented="no" display-inline="no-display-inline" id="H626A5D48FD71446BB13FCB9EFE8F4EC1"><enum>(II)</enum><text display-inline="yes-display-inline">in the case of a census tract located in a
nonmetropolitan statistical area, 70 percent of the nonmetropolitan statewide
median family income.</text>
</subclause></clause></subparagraph></paragraph></subsection><subsection id="H34FFA4D883EB43D5BC8C662C6C724EC9"><enum>(d)</enum><header>Report
requirement</header><text display-inline="yes-display-inline">The Secretary of
Commerce shall submit to Congress a report during each of fiscal years 2010
through 2014 on how funds were expended during the previous fiscal year.</text>
</subsection><subsection id="H15A29BAADE2C4BBABB23F9696C2E81"><enum>(e)</enum><header>Authorization of
Appropriations</header><text>For grants under this section, there are
authorized to be appropriated to the Secretary of Commerce $15,000,000 for each
of fiscal years 2009 through 2013.</text>
</subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</section><enum>III</enum><header>Extension of
Public Safety Interoperable Communications Grant Program</header>
<section id="H847327BE89474B1FBB8190C3D1A6F15C"><enum>301.</enum><header>Extension of
Public Safety Interoperable Communications Grant Program</header><text display-inline="no-display-inline">Section 3006(a)(2) of the Digital Television
Transition and Public Safety Act of 2005 (<external-xref legal-doc="public-law" parsable-cite="pl/109/171">Public Law 109–171</external-xref>; 120 Stat. 24) is
amended by striking <quote>fiscal year 2010</quote> and inserting <quote>fiscal
year 2013</quote>.</text>
</section><enum>IV</enum><header>Farm
bill provisions</header>
<section id="H9708B413290747ADB63DF3002462B871"><enum>401.</enum><header>Expansion of
911 access</header><text display-inline="no-display-inline">Section 315(b) of
the Rural Electrification Act of 1936 (<external-xref legal-doc="usc" parsable-cite="usc/7/904e">7 U.S.C. 904e(b)</external-xref>) is amended by striking
<quote>2002 through 2007</quote> and inserting <quote>2009 through
2013</quote>.</text>
</section><section id="H6C1171344EB644EE8C7127A213C18520"><enum>402.</enum><header>Access to
broadband telecommunications services in rural areas</header>
<subsection id="H323E75D38B0C45AF848E873BBDB5CF13"><enum>(a)</enum><header>Definitions</header><text display-inline="yes-display-inline">Section 601(b) of the Rural Electrification
Act of 1936 (<external-xref legal-doc="usc" parsable-cite="usc/7/950bb">7 U.S.C. 950bb(b)</external-xref>) is amended by striking paragraph (2) and
inserting the following:</text>
<quoted-block display-inline="no-display-inline" id="HC7E83F197D2A4D4C8EBEEA74D276DD6" style="OLC">
<paragraph id="H2C1D9CE9204945A48102FD750200F5E1"><enum>(2)</enum><header>Eligible rural
community</header><text display-inline="yes-display-inline">The term
<term>eligible rural community</term> means any area of the United States that
is not—</text>
<subparagraph id="H0CC0A2A91BF545E0A1BD2E007C323E7B"><enum>(A)</enum><text display-inline="yes-display-inline">included within the boundaries of any city,
town, borough, or village, whether incorporated or unincorporated, with a
population of more than 40,000 inhabitants; or</text>
</subparagraph><subparagraph id="H814CAC09984843B8BA1214728F8D9482"><enum>(B)</enum><text display-inline="yes-display-inline">the urbanized area contiguous and adjacent
to such a city or
town.</text>
</subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="H62CD9F05AA5449CE97B89BE12DD77942"><enum>(b)</enum><header>Prioritization
of applications</header>
<paragraph id="HDB54C67AC11E44B8AAA4B5A815BF3E11"><enum>(1)</enum><header>Definition</header><text>Section
601(b) of such Act (<external-xref legal-doc="usc" parsable-cite="usc/7/950bb">7 U.S.C. 950bb(b)</external-xref>), as amended by subsection (a) of this
section, is amended by adding at the end the following:</text>
<quoted-block display-inline="no-display-inline" id="H0964CD99961A46E788F900DC1514B23" style="OLC">
<paragraph id="H020FB598C52D43E399DF004901997701"><enum>(3)</enum><header>Incumbent
service provider</header><text display-inline="yes-display-inline">The term
<term>incumbent service provider</term> means, with respect to an application
submitted pursuant to this section, an entity that is providing broadband
service to at least 5 percent of the households in the service area proposed in
the
application.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph id="HB49DCD9534074AB795E6BFD4B98137D2"><enum>(2)</enum><header>Priority based
on number of incumbent service providers</header><text display-inline="yes-display-inline">Section 601(c) of such Act (7 U.S.C.
950bb(c)) is amended by adding at the end the following:</text>
<quoted-block display-inline="no-display-inline" id="HB5DC7F6D064C4D28AE00B613F40C28D" style="OLC">
<paragraph id="HF9478D6EEBB04C87A112B0001361F479"><enum>(3)</enum><header>Applications
prioritized based on number of incumbent service providers</header>
<subparagraph id="H0A4C20CF78144A6B8992531749102FC5"><enum>(A)</enum><header>In
general</header><text>In making or guaranteeing loans under paragraph (1), the
Secretary shall give priority, in the following order, to applications from
eligible rural communities that have—</text>
<clause id="H2AD06D3856384D928CE6AD076563C023"><enum>(i)</enum><text>no
incumbent service provider;</text>
</clause><clause id="HEAD95E8AF26943BEADF701094CA47B5"><enum>(ii)</enum><text display-inline="yes-display-inline">1 incumbent service provider; or</text>
</clause><clause display-inline="no-display-inline" id="H5433C8547DAA4D32B615CDE61CA31C87"><enum>(iii)</enum><text display-inline="yes-display-inline">2 incumbent service providers who,
together, serve not more than 25 percent of the households in the service area
proposed in the application.</text>
</clause></subparagraph><subparagraph display-inline="no-display-inline" id="HCE89A6E4F7B34EDBB3003CF8C17731A3"><enum>(B)</enum><header>Prohibitions</header><text display-inline="yes-display-inline">In carrying out this section, the Secretary
may not—</text>
<clause id="H6EB5C6FC809848A39206B77029D8ADB7"><enum>(i)</enum><text>make a loan to an
eligible community in which there are 3 or more incumbent service providers,
unless—</text>
<subclause id="HEE29D23C38D347D5B268A22688EB4E4"><enum>(I)</enum><text>the loan is to an
incumbent service provider of the community;</text>
</subclause><subclause id="H1460CCD5E4F14F63AF4867272B379FD0"><enum>(II)</enum><text display-inline="yes-display-inline">the other providers in that community are
notified of the application before approval by the Secretary, and have
sufficient time to comment on the application; and</text>
</subclause><subclause id="H39F383F54C844E52A1C68D66CC9F8099"><enum>(III)</enum><text>the application
includes substantially increasing—</text>
<item id="HD6490A772F984CF28F6D41BCD05EB160"><enum>(aa)</enum><text>the
quality of broadband service in the community; and</text>
</item><item id="HB20CFE04FB4E48AC84D253405194FCDD"><enum>(bb)</enum><text display-inline="yes-display-inline">the provision of broadband service to
unserved households inside and outside the community; or</text>
</item></subclause></clause><clause id="H15112FD82EB04A808550FE7DDD7D8400"><enum>(ii)</enum><text display-inline="yes-display-inline">make a loan for new construction to any
community in which more than 75 percent of the households may obtain affordable
broadband service, on request, from at least 1 incumbent service
provider.</text>
</clause></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection display-inline="no-display-inline" id="H6DABC504554E4A02A1A0092CC4148520"><enum>(c)</enum><header>Paperwork
reduction</header><text display-inline="yes-display-inline">Section 601(c) of
such Act (<external-xref legal-doc="usc" parsable-cite="usc/7/950bb">7 U.S.C. 950bb(c)</external-xref>), as amended by subsection (b)(2) of this section,
is amended by adding at the end the following:</text>
<quoted-block display-inline="no-display-inline" id="HD424B680FDB64275AF3EBEF16E5DFCE0" style="OLC">
<paragraph id="H48CA9578E4A043DC9D503F3358BDEC6D"><enum>(4)</enum><header>Paperwork
reduction</header><text display-inline="yes-display-inline">The Secretary shall
take steps to reduce the cost and paperwork associated with applying for a loan
or loan guarantee under this section by first-time applicants, particularly
those who are smaller and start-up Internet providers, including by providing
for a new application which shall maintain the ability of the Secretary to make
an analysis of the risk associated with the loan
involved.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="H292C08CA9824480D90D6A730B1E5E586"><enum>(d)</enum><header>Increase in
maximum number of subscriber lines that may be served by an eligible
entity</header><text>Section 601(d)(3) of such Act (<external-xref legal-doc="usc" parsable-cite="usc/7/950bb">7 U.S.C. 950bb(d)(3)</external-xref>) is
amended by striking <quote>2</quote> and inserting <quote>10</quote>.</text>
</subsection><subsection id="H7CDC72CC708D4038918D3706F2F42803"><enum>(e)</enum><header>Limitation on
funds to entities with more than 2 percent of subscriber lines</header><text display-inline="yes-display-inline">Section 601(d) of such Act (7 U.S.C.
950bb(d)) is amended by adding at the end the following:</text>
<quoted-block display-inline="no-display-inline" id="H12DE2DA8FB2E436CA9BC021D8395BD21" style="OLC">
<paragraph id="H173048B2256B4FCFBF275C32CFFFC495"><enum>(4)</enum><header>Limitation on
funds to entities with more than 2 percent of subscriber lines</header><text display-inline="yes-display-inline">Not more than 25 percent of the loans made
under this section in a single fiscal year may be approved for entities that
serve more than 2 percent of the telephone subscriber lines in the United
States.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection display-inline="no-display-inline" id="H0533CF9A1ABD4D9A8676E646163160F5"><enum>(f)</enum><header>Loan term not To
exceed 35 years</header><text>Section 601(g)(2) of such Act (7 U.S.C.
950bb(g)(2)) is amended by striking <quote>not to exceed the useful life of the
assets constructed, improved, or acquired with the proceeds of the loan or
extension of credit.</quote> and inserting <quote>of such length, not exceeding
35 years, as the borrower may request, so long as the Secretary determines that
the loan is adequately secured. In determining the term of a loan or loan
guarantee, the Secretary shall consider whether the recipient is or would be
serving an area that is not receiving broadband services.</quote></text>
</subsection><subsection id="H44E04304FA924357A8A60021A1E6C27B"><enum>(g)</enum><header>Adequacy of
security</header><text display-inline="yes-display-inline">Section 601 of such
Act (<external-xref legal-doc="usc" parsable-cite="usc/7/950bb">7 U.S.C. 950bb</external-xref>) is amended by redesignating subsections (h) through (k) as
subsections (i) through (l), respectively, and inserting after subsection (g)
the following:</text>
<quoted-block display-inline="no-display-inline" id="H8E26CE1920CD42DD806257C60056926C" style="OLC">
<subsection id="H6F24E0BFE5024C22841F5CF44F93A679"><enum>(h)</enum><header>Adequacy of
security</header><text display-inline="yes-display-inline">The Secretary shall
ensure that the type, amount, and method of security used to secure any loan or
loan guarantee provided under this section is commensurate to the risk involved
with the loan or loan guarantee, particularly when the loan or loan guarantee
is issued to a financially healthy, strong, and stable entity. In determining
the amount and method of security, the Secretary shall consider reducing the
security in areas that do not have broadband
service.</text>
</subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="HDCEAE99923254C048915415BAABA996B"><enum>(h)</enum><header>General report
on program</header><text display-inline="yes-display-inline">Section 601 of
such Act (<external-xref legal-doc="usc" parsable-cite="usc/7/950bb">7 U.S.C. 950bb</external-xref>), as amended by subsection (g) of this section, is
amended by redesignating subsections (k) and (l) as subsections (l) and (m),
respectively, and inserting after subsection (j) the following:</text>
<quoted-block display-inline="no-display-inline" id="H243510D88AA942258983F1410083EAEC" style="OLC">
<subsection id="HD9834CBE1BA64A0AA6A795F7AF1CC5C8"><enum>(k)</enum><header>General program
report</header><text display-inline="yes-display-inline">Not later than
December 1 of each year, the Secretary shall prepare and submit to the
Committee on Agriculture of the House of Representatives and the Committee on
Agriculture, Nutrition, and Forestry of the Senate a report that details for
the preceding fiscal year—</text>
<paragraph id="HCA647B4575BB4A10B2D5B46E7FB4E500"><enum>(1)</enum><text display-inline="yes-display-inline">the loans made under this section;</text>
</paragraph><paragraph id="HE7989DE0911E4EC200542900B0AB658D"><enum>(2)</enum><text display-inline="yes-display-inline">the communities served under this
section;</text>
</paragraph><paragraph display-inline="no-display-inline" id="HD9EBC358F07F42BB00EE8BD7F2E15ECD"><enum>(3)</enum><text display-inline="yes-display-inline">the speed of the broadband service offered
by applicants for, and recipients of, loans or loan guarantees under this
section;</text>
</paragraph><paragraph id="H9DE49CCB58A74BFCA7F0B54254854D74"><enum>(4)</enum><text display-inline="yes-display-inline">the type of services offered by the
applicants and recipients;</text>
</paragraph><paragraph id="H21FBDFCC73824D2497C6452B58A7E8EB"><enum>(5)</enum><text display-inline="yes-display-inline">the length of time to approve applications
submitted pursuant to this section; and</text>
</paragraph><paragraph id="HF6B4D3AC74B141C59669DCF995131ECE"><enum>(6)</enum><text display-inline="yes-display-inline">the outreach efforts undertaken by the
Department of Agriculture to encourage persons in areas without broadband
service to submit applications pursuant to this section.</text>
</paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="H2A06BDFF99E74F6AB8DAA48729B318C4"><enum>(i)</enum><header>National center
for rural telecommunications assessment</header><text>Section 601 of such Act
(<external-xref legal-doc="usc" parsable-cite="usc/7/950bb">7 U.S.C. 950bb</external-xref>), as amended by subsections (g) and (h) of this section, is
amended by redesignating subsections (l) and (m) as subsections (m) and (n),
respectively, and inserting after subsection (k) the following:</text>
<quoted-block display-inline="no-display-inline" id="H1B52D8D8A48E4A08B8611FFDD5300148" style="OLC">
<subsection id="H2152E079FECF4DD18DACC32C2D003F55"><enum>(l)</enum><header>National center
for rural telecommunications assessment</header>
<paragraph display-inline="no-display-inline" id="HA1D86D459D684FEC00A32EB900BC148D"><enum>(1)</enum><header>Establishment of
center</header><text display-inline="yes-display-inline">The Secretary shall
designate a National Center for Rural Telecommunications Assessment (in this
subsection referred to as the <quote>Center</quote>).</text>
</paragraph><paragraph id="H419A0F4F0D4C425AB875F38200A0A601"><enum>(2)</enum><header>Criteria</header><text display-inline="yes-display-inline">The Secretary shall use the following
criteria in making the designation:</text>
<subparagraph id="HEDA4E092347D48ABA833C0B0C29F60A3"><enum>(A)</enum><text display-inline="yes-display-inline">The Center must be an entity with a focus
on rural policy research and a minimum of 5 years experience in rural
telecommunications research and assessment.</text>
</subparagraph><subparagraph id="H5DAA82A2A59A4AEB923B737EE550B248"><enum>(B)</enum><text display-inline="yes-display-inline">The Center must be capable of assessing
broadband services in rural areas.</text>
</subparagraph><subparagraph id="H312B65C317A44B82B9FEDCFC36AC54C0"><enum>(C)</enum><text display-inline="yes-display-inline">The Center must have significant experience
with other rural economic development centers and organizations in the
assessment of rural policies and formulation of policy solutions at the local,
State, and Federal level.</text>
</subparagraph></paragraph><paragraph id="HB81DC1F71EFC420494107EBA2DC95638"><enum>(3)</enum><header>Board</header><text display-inline="yes-display-inline">The management of the Center shall be
vested in a board of directors that is capable of oversight of the duties set
forth in paragraph (4).</text>
</paragraph><paragraph id="HA919FAEDE37042D68897027168075EFB"><enum>(4)</enum><header>Duties</header><text display-inline="yes-display-inline">The Center shall—</text>
<subparagraph id="H01D8E529F4E0443882048329B1718861"><enum>(A)</enum><text display-inline="yes-display-inline">assess the effectiveness of programs
provided under subsection (d) in increasing broadband penetration and purchase
in rural areas, especially in those rural communities identified by the
Secretary as having no service before award of a broadband loan or loan
guarantee under subsection (d);</text>
</subparagraph><subparagraph id="H420E366E53D14BCFBAAA51DF2CB74224"><enum>(B)</enum><text display-inline="yes-display-inline">develop assessments of broadband
availability in rural areas, working with existing rural development centers
selected by the Center;</text>
</subparagraph><subparagraph id="HC35AAA8E11F04C24918547623C25E87"><enum>(C)</enum><text display-inline="yes-display-inline">identify policies and initiatives at the
local, State and Federal level that have increased broadband penetration and
purchase in rural areas;</text>
</subparagraph><subparagraph id="H51A5E5401B454C68A64444D64762B27E"><enum>(D)</enum><text display-inline="yes-display-inline">conduct a national study of rural
households and businesses focusing on the adoption of, barriers to, and
utilization of broadband services; and</text>
</subparagraph><subparagraph id="H1EB52A8C941043BEBAA596BB5EFA382B"><enum>(E)</enum><text display-inline="yes-display-inline">provide reports to the public on the
activities undertaken under this section.</text>
</subparagraph></paragraph><paragraph id="HF4B37E00599147DBA7BAB5E144DECF25"><enum>(5)</enum><header>Reporting
requirements</header><text display-inline="yes-display-inline">The Center shall
report by December 1 of each year to the Secretary its activities, the results
of its research, and any such information the Secretary may request regarding
the prior fiscal year. In reporting to the Secretary the Center shall include
the following:</text>
<subparagraph id="HFB2ABF7EBDDA448E9EB1A1E7A35F9169"><enum>(A)</enum><text display-inline="yes-display-inline">Assessments of the programs provided under
subsection (b).</text>
</subparagraph><subparagraph id="H4356C1425D7A43AC92EA8BECBA81AB16"><enum>(B)</enum><text display-inline="yes-display-inline">Annual assessments on broadband
availability in rural areas under consideration by the Center.</text>
</subparagraph><subparagraph id="HFAA0D7BDF9384F41A400D7E56CAB4B1E"><enum>(C)</enum><text display-inline="yes-display-inline">Annual assessments on the effects of the
policy initiatives identified in paragraph (2)(C).</text>
</subparagraph><subparagraph id="H2043F15FE5E84E53AE2B05F5AEE56F26"><enum>(D)</enum><text display-inline="yes-display-inline">Results from the national study of rural
households and businesses conducted under paragraph (4)(D).</text>
</subparagraph></paragraph><paragraph id="H4976B42E2A634D1F9CC2B364B5531171"><enum>(6)</enum><header>Authorization of
appropriations</header><text display-inline="yes-display-inline">There are
authorized to be appropriated to the Secretary to carry out this subsection not
more than $1,000,000 for each of the fiscal years 2009 through
2013.</text>
</paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="HB533BC48859B4CD09757A4908FADA1AC"><enum>(j)</enum><header>Funding</header><text display-inline="yes-display-inline">Section 601(m) of such Act (7 U.S.C.
950bb(l)) as so redesignated by subsections (g) through (i) of this section, is
amended—</text>
<paragraph id="H1F6141FD4D47492896E5FEBA3757C7BA"><enum>(1)</enum><text display-inline="yes-display-inline">by striking paragraph (1);</text>
</paragraph><paragraph id="H6320CED13BB6471995A22C7464FD6F9E"><enum>(2)</enum><text>by redesignating
paragraphs (2), (3), and (4) as paragraphs (1), (2), and (3),
respectively;</text>
</paragraph><paragraph id="H2905C06B25D84028B05E52021BCA2CBD"><enum>(3)</enum><text display-inline="yes-display-inline">in paragraph (1)(B) (as so redesignated),
by striking <quote>2007</quote> and inserting <quote>2013</quote>;</text>
</paragraph><paragraph id="H6536FA822DCA4F2CA399A2AD20A609E"><enum>(4)</enum><text display-inline="yes-display-inline">in paragraph (2) (as so redesignated), by
striking <quote>2003 through 2007</quote> and inserting <quote>2009 through
2013</quote>; and</text>
</paragraph><paragraph id="HDF25E2E7ADEA4BACA9ED62712D4EAE0"><enum>(5)</enum><text display-inline="yes-display-inline">in paragraph (3) (as so redesignated), by
adding at the end the following:</text>
<quoted-block display-inline="no-display-inline" id="H6AFB3E6E25B04B0CB2A677F95B4677F3" style="OLC">
<subparagraph id="H989AC890099E471CB5C172C19256D6D3"><enum>(D)</enum><header>Eligible tribal
communities</header><text display-inline="yes-display-inline">Of the amounts
made available under subparagraph (A) for a fiscal year, 10 percent shall be
reserved for entities serving eligible tribal communities.</text>
</subparagraph><subparagraph id="HD1C2BD90A708438EBCEA3B50F5271C82"><enum>(E)</enum><header>Unobligated
amounts</header><text display-inline="yes-display-inline">Any amounts in the
reserve established for eligible tribal communities for a fiscal year under
subparagraph (D) that are not obligated by June 30 of the fiscal year shall be
available to the Secretary to make loans and loan guarantees under this section
to eligible entities in any State, as determined by the Secretary.</text>
</subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection id="H90760F62F5E24E0EB0BE83813C814372"><enum>(k)</enum><header>Extension of
authority To issue loans</header><text display-inline="yes-display-inline">Section 601(n) of such Act (7 U.S.C.
950bb(m)), as so redesignated by subsections (f) through (h) of this section,
is amended by striking <quote>2007</quote> and inserting
<quote>2013</quote>.</text>
</subsection></section><section id="H5D468D260BA9458B007D81E000EB0712"><enum>403.</enum><header>Community
connect grant program</header><text display-inline="no-display-inline">Title VI
of the Rural Electrification Act of 1936 (<external-xref legal-doc="usc" parsable-cite="usc/7/950bb">7 U.S.C. 950bb</external-xref>) is amended by adding
at the end the following:</text>
<quoted-block display-inline="no-display-inline" id="H517C6E673D8145DC9404267B6BCB35D5" style="OLC">
<section id="HC069C548AA474E8497B4234B15BEA4AC"><enum>602.</enum><header>Community
connect grant program</header>
<subsection id="H47CD030E0B4748FF92BE84FC5008EBC9"><enum>(a)</enum><header>Establishment</header><text display-inline="yes-display-inline">The Secretary shall establish a grant
program to be known as the <quote>Community Connect Grant Program</quote> to
provide financial assistance to eligible applicants to provide broadband
transmission service that fosters economic growth and delivers enhanced
educational, health care, and public safety services.</text>
</subsection><subsection id="H69F552686E8A4BFABEBA74D5D3005484"><enum>(b)</enum><header>Eligibility</header><text display-inline="yes-display-inline">To be eligible for a grant under this
section, the applicant must—</text>
<paragraph id="H8664662DA4C645CDA682D1D88997772C"><enum>(1)</enum><text display-inline="yes-display-inline">be legally organized as an incorporated
tribal organization, an Indian tribe, or tribal organization, as defined in
subsections (b) and (c) of section 4 of the Indian Self-Determination and
Education Assistance Act (<external-xref legal-doc="usc" parsable-cite="usc/25/450b">25 U.S.C. 450b(b)</external-xref> and (c)), a State or local unit of
government, or other legal entity, including a cooperative, private
corporation, or limited liability company organized on a for-profit or
not-for-profit basis;</text>
</paragraph><paragraph id="HDCC90812BCDE4753B41B1C5DDF2DA9B0"><enum>(2)</enum><text display-inline="yes-display-inline">have the legal capacity and authority to
own and operate broadband facilities as proposed in its application, to enter
into contracts, and to otherwise comply with applicable Federal statutes and
regulations; or</text>
</paragraph><paragraph id="H186FD16CB5F847CDA76898C5FE91A0C8"><enum>(3)</enum><text>be in an eligible
rural community (as defined in section 601(b)(2) of the Rural Electrification
Act of 1936).</text>
</paragraph></subsection><subsection id="H975D9CB4D0B949D2BB9230C66805BD45"><enum>(c)</enum><header>Ineligible grant
purposes</header><text display-inline="yes-display-inline">A grant made under
this section may not be used—</text>
<paragraph id="HC388D86C18154C648EADB7DDB3A055C0"><enum>(1)</enum><text display-inline="yes-display-inline">to finance the duplication of any broadband
transmission service provided by another entity; or</text>
</paragraph><paragraph id="HAB5D3CC66B914C6FB25610F51900E5BD"><enum>(2)</enum><text display-inline="yes-display-inline">with respect to facilities, to provide
local exchange telecommunications service to any person or entity receiving the
service.</text>
</paragraph></subsection><subsection id="H00B45301458F4FCE99B0D4366155BC00"><enum>(d)</enum><header>Priority</header><text display-inline="yes-display-inline">In making grants under this section, the
Secretary shall give priority to grants that will enhance community access to
telemedicine and distance learning resources.</text>
</subsection><subsection id="HCA196854603946459616129BB79300EB"><enum>(e)</enum><header>Matching
contributions</header>
<paragraph id="H57BAA2A0245D4B3AB643D8EB3100F2B3"><enum>(1)</enum><header>In
general</header><text display-inline="yes-display-inline">To be eligible to
receive a grant under subsection (a), a grant applicant shall provide a
matching contribution of at least 15 percent of the grant amount requested, in
funds and in-kind contributions in a proportion to be determined by the
Secretary.</text>
</paragraph><paragraph id="H810D91DE29494632939E94D0F2A00847"><enum>(2)</enum><header>Limitations</header>
<subparagraph id="H8DDB4D34688C4544A364FCDC89C46000"><enum>(A)</enum><text display-inline="yes-display-inline">Costs incurred by or on behalf of an
applicant, for facilities, installed equipment, or other services rendered
before submission of a completed application shall not be considered to be for
an eligible grant purpose or a matching contribution.</text>
</subparagraph><subparagraph id="HCD12EC106E6E4B8B85B7DEA5D9C3001"><enum>(B)</enum><text display-inline="yes-display-inline">Any financial assistance from Federal
sources shall not be considered to be a matching contribution for purposes of
this section, unless there is a Federal statutory exception specifically
authorizing the Federal financial assistance to be so considered.</text>
</subparagraph></paragraph></subsection><subsection id="HFB02E122D3A44348A403BD4571F52843"><enum>(f)</enum><header>Authorization of
appropriations</header><text display-inline="yes-display-inline">There are
authorized to be appropriated to the Secretary to carry out this section not
more than $25,000,000 for each of the fiscal years 2009 through
2013.</text>
</subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section display-inline="no-display-inline" id="HF4CA0DF16BE149C0A9DC7086489385D9" section-type="subsequent-section"><enum>404.</enum><header>Assistance for rural
public television stations</header><text display-inline="no-display-inline">Section 2333 of the Food, Agriculture,
Conservation and Trade Act of 1990 (7 U.S.C. Sec. 950aaa–2) is amended by
adding at the end the following:</text>
<quoted-block display-inline="no-display-inline" id="HECE8CDA7C8C84F56A1BBAC8003215179" style="OLC">
<subsection id="H7AB27E188FB54960BB38A00015000063"><enum>(j)</enum><header>Digital service
transition assistance for public television stations</header><text display-inline="yes-display-inline">The Secretary may provide grants under this
section to noncommercial education television broadcast stations that serve
rural areas for the purposes of developing digital facilities, equipment, and
infrastructure to enhance digital services to rural
areas.</text>
</subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section id="H72FAC020B5B74AE5A13422B9DF1B4FA9"><enum>405.</enum><header>Telemedicine
and distance learning services in rural areas</header>
<subsection display-inline="no-display-inline" id="H96C04E5326E042928BBD91493202BA9"><enum>(a)</enum><header>Authorization of
appropriations</header><text display-inline="yes-display-inline">Section 2335A
of the Food, Agriculture, Conservation and Trade Act of 1990 (7 U.S.C.
950aaa–5) is amended by striking <quote>2007</quote> and inserting
<quote>2013</quote>.</text>
</subsection><subsection id="HBF51229B9F0F4F73AD89BC28F188FE2E"><enum>(b)</enum><header>Conforming
amendment</header><text display-inline="yes-display-inline">Section 1(b) of
<external-xref legal-doc="public-law" parsable-cite="pl/102/551">Public Law 102–551</external-xref> (<external-xref legal-doc="usc" parsable-cite="usc/7/950aaa">7 U.S.C. 950aaa</external-xref> note) is amended by striking
<quote>2007</quote> and inserting <quote>2013</quote>.</text>
</subsection></section><section id="H2EAC9F00C4F445E8AD34ACC18439B407"><enum>406.</enum><header>Guarantees for
bonds and notes issued for electrification or telephone purposes</header><text display-inline="no-display-inline">Section 313A(f) of the Rural Electrification
Act of 1936 (<external-xref legal-doc="usc" parsable-cite="usc/7/940c-1">7 U.S.C. 940c–1(f)</external-xref>) is amended by striking <quote>2007</quote> and
inserting <quote>2013</quote>.</text>
</section><section display-inline="no-display-inline" id="H38B0AACBA41D491BAB24B737F06CF6F7" section-type="subsequent-section"><enum>407.</enum><header>Comprehensive rural
broadband strategy</header><text display-inline="no-display-inline">Not later
than 180 days after the date of the enactment of this Act, the Secretary of
Agriculture shall submit to the President, the Committee on Agriculture of the
House of Representatives, and the Committee on Agriculture, Nutrition, and
Forestry of the Senate a report describing a comprehensive rural broadband
strategy that includes—</text>
<paragraph id="H5382B0E9FFF04CE8A786A4FCD08FF7F6"><enum>(1)</enum><text>recommendations—</text>
<subparagraph id="H8B1BF4A33D7846C4AC00B866C3F183B3"><enum>(A)</enum><text>to promote
interagency coordination of Federal agencies in regards to policies,
procedures, and targeted resources, and to improve and streamline the polices,
programs, and services;</text>
</subparagraph><subparagraph id="H87479F7686B142AA9760281E57009B52"><enum>(B)</enum><text>to coordinate
among Federal agencies regarding existing rural broadband or rural initiatives
that could be of value to rural broadband development;</text>
</subparagraph><subparagraph id="HA3930E93533941B79E017D96FC1066F3"><enum>(C)</enum><text>to address both
short- and long-term solutions and needs assessments for a rapid build-out of
rural broadband solutions and applications for Federal, State, regional, and
local government policy makers;</text>
</subparagraph><subparagraph id="H28D248E241164436956C81B9E471AA6F"><enum>(D)</enum><text>to identify how
specific Federal agency programs and resources can best respond to rural
broadband requirements and overcome obstacles that currently impede rural
broadband deployment; and</text>
</subparagraph><subparagraph id="H0F09474D598042DB90F9697BBAE2C52"><enum>(E)</enum><text>to promote
successful model deployments and appropriate technologies being used in rural
areas so that State, regional, and local governments can benefit from the
cataloging and successes of other State, regional, and local governments;
and</text>
</subparagraph></paragraph><paragraph id="HD81F9E9725BC42EE9767ABD600AAB1A"><enum>(2)</enum><text>a
description of goals and timeframes to achieve the strategic plans and visions
identified in the report.</text>
</paragraph></section><enum>V</enum><header>Telehealth
Programs</header>
<section id="H7A5D0741B4B941FB9EE6B294B57D0590" section-type="subsequent-section"><enum>601.</enum><header>Telehealth
programs</header>
<subsection id="HC40A56881F384251BFCA43D4357B0030"><enum>(a)</enum><header>Telehealth
network and telehealth resource centers grant programs</header><text display-inline="yes-display-inline">Subsection (s) of section 330I of the
Public Health Service Act (<external-xref legal-doc="usc" parsable-cite="usc/42/254c-14">42 U.S.C. 254c–14</external-xref>) is amended to read as
follows:</text>
<quoted-block display-inline="no-display-inline" id="H715CC916A673437980E11D91B9113366" style="OLC">
<subsection id="HA964D440819F433BBD1DE1847DADE68"><enum>(s)</enum><header>Authorization of
appropriations</header><text display-inline="yes-display-inline">There are
authorized to be appropriated to carry out this section—</text>
<paragraph id="HA803A8C638044FF1BA85EECBE195BDFD"><enum>(1)</enum><text>for grants under
subsection (d)(1), $5,000,000 for each of fiscal years 2009 through 2013;
and</text>
</paragraph><paragraph id="HC69D8C656807424D90217EDBD24CDBEB"><enum>(2)</enum><text>for grants under
subsection (d)(2), $5,000,000 for each of fiscal years 2009 through
2013.</text>
</paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="H791EBB30B01C4888A6B83B6144D456E1"><enum>(b)</enum><header>Telemedicine;
incentive grants regarding coordination among States</header><text>Subsection
(b) of section 330L of the Public Health Service Act (<external-xref legal-doc="usc" parsable-cite="usc/42/245c-18">42 U.S.C. 245c–18</external-xref>) is
amended to read as follows:</text>
<quoted-block display-inline="no-display-inline" id="H12237C50A86A44729FB1D4A944A58E32" style="OLC">
<subsection id="H5A23BA9B07474A00B38F5064DCA3A5F"><enum>(b)</enum><header>Authorization of
appropriations</header><text display-inline="yes-display-inline">To carry out
subsection (a), there is authorized to be appropriated $5,000,000 for each of
fiscal years 2009 through
2013.</text>
</subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection></section>