[Congressional Bills 111th Congress]
[From the U.S. Government Publishing Office]
[H.R. 760 Introduced in House (IH)]

111th CONGRESS
  1st Session
                                H. R. 760

  To amend the Internal Revenue Code of 1986 to provide an income tax 
      credit to holders of bonds financing new advanced broadband 
                infrastructure, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                            January 28, 2009

 Ms. Eshoo (for herself, Mr. Thompson of California, and Mr. Markey of 
Massachusetts) introduced the following bill; which was referred to the 
Committee on Ways and Means, and in addition to the Committee on Energy 
    and Commerce, for a period to be subsequently determined by the 
  Speaker, in each case for consideration of such provisions as fall 
           within the jurisdiction of the committee concerned

_______________________________________________________________________

                                 A BILL


 
  To amend the Internal Revenue Code of 1986 to provide an income tax 
      credit to holders of bonds financing new advanced broadband 
                infrastructure, and for other purposes.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Advanced Broadband Infrastructure 
Bond Initiative of 2009''.

SEC. 2. CREDIT TO HOLDERS OF QUALIFIED ADVANCED BROADBAND 
              INFRASTRUCTURE BONDS.

    (a) In General.--Subpart I of part IV of subchapter A of chapter 1 
(relating to qualified tax credit bonds) is amended by adding at the 
end the following new section:

``SEC. 54F. CREDIT TO HOLDERS OF QUALIFIED ADVANCED BROADBAND 
              INFRASTRUCTURE BONDS.

    ``(a) Qualified Advanced Broadband Infrastructure Bond.--For 
purposes of this subpart the term `qualified advanced broadband 
infrastructure bond' means any bond issued as part of an issue if--
            ``(1) 100 percent of the available project proceeds of such 
        issue are to be used for any or a series of designated 
        qualified advanced broadband infrastructure projects, and
            ``(2) the bond is issued by a qualified issuer.
    ``(b) Limitation on Amount of Bonds Designated.--
            ``(1) National limitation.--There is a national advanced 
        broadband infrastructure bond limitation for each calendar 
        year. Such limitation for each calendar year, 2009, 2010, and 
        2011, is--
                    ``(A) in the case of qualified issuers which are 
                States or local governments, $1,000,000,000, and
                    ``(B) in the case of all other issuers, 
                $10,000,000,000,
        and, except as provided in paragraph (4), zero thereafter.
            ``(2) Allocation of limitation.--The national advanced 
        broadband infrastructure bond limitation for a calendar year 
        shall be allocated by the Secretary among the qualified 
        advanced broadband infrastructure projects designated for such 
        year to ensure an equitable distribution among the States and 
        to maximize the number of jobs and economic output.
            ``(3) Designation subject to limitation amount.--The 
        maximum aggregate face amount of bonds issued during any 
        calendar year which may be designated under subsection (a) with 
        respect to any qualified advanced broadband infrastructure 
        project shall not exceed the limitation amount allocated to 
        such project under paragraph (2) for such calendar year.
            ``(4) Carryover of unused limitation.--
                    ``(A) In general.--If for any calendar year--
                            ``(i) the national advanced broadband 
                        infrastructure limitation amount, exceeds
                            ``(ii) the amount of bonds issued during 
                        such year which are designated under subsection 
                        (a) with respect to qualified advanced 
                        broadband infrastructure projects,
        the national advanced broadband infrastructure limitation 
        amount for the following calendar year shall be increased by 
        the amount of such excess.
                    ``(B) Limitation of carryover.--Any carryforward of 
                a limitation amount may be carried only to the first 3 
                years following the unused limitation year. For 
                purposes of the preceding sentence, a limitation amount 
                shall be treated as used on a first-in first-out basis.
    ``(c) Qualified Advanced Broadband Infrastructure Project.--For 
purposes of this section--
            ``(1) In general.--The term `qualified advanced broadband 
        infrastructure project' means a project approved by the 
        Secretary to construct advanced broadband infrastructure that--
                    ``(A) provides residential or small business 
                consumers with access to the internet in the normal 
                course of operations at transmission speeds that comply 
                with the requirements of paragraph (3) for the 
                provision of advanced broadband communications 
                services; and
                    ``(B) operates advanced broadband service networks 
                on an open access basis, as defined by the Federal 
                Communications Commission.
            ``(2) Approval requirements.--
                    ``(A) In general.--A project may not be approved as 
                a qualified advanced broadband infrastructure project 
                unless--
                            ``(i) the issuer with respect to such 
                        project certifies that the NTIA Administrator 
                        has approved such project in writing, and
                            ``(ii) the project--
                                    ``(I) in the case of a qualified 
                                issuer which is a State or local 
                                government, meets the requirements of 
                                subparagraph (B), and
                                    ``(II) in the case of any other 
                                qualified issuer, meets the 
                                requirements of subparagraph (C).
                    ``(B) Requirements for state or local government 
                projects.--The requirements of this subparagraph are 
                met if--
                            ``(i) the project is nominated by a State 
                        or local government for approval as a qualified 
                        advanced broadband infrastructure project,
                            ``(ii) such State or local government has 
                        provided private sector entities with notice of 
                        the opportunity during a 30-day period to bid 
                        to provide the services offered by such 
                        nominated project, and
                            ``(iii) such project is approved by the 
                        Secretary, upon recommendation of the Secretary 
                        of Commerce, as a qualified advanced broadband 
                        infrastructure project or a series of qualified 
                        advanced broadband infrastructure projects.
                    ``(C) Requirements for other projects.--The 
                requirements of this subparagraph are met if--
                            ``(i) the project--
                                    ``(I) in the case of a qualified 
                                issuer described in subsection 
                                (d)(1)(B), is with respect to such 
                                provision of services within the 
                                designated operating area of the 
                                jurisdiction of the State or local 
                                governing authority from which such 
                                qualified issuer has obtained a 
                                certificate of public convenience and 
                                necessity (or the equivalent), or, in 
                                the case of a qualified issuer 
                                described in subsection (d)(1)(C), is 
                                with respect to such provision of 
                                services within the area for which such 
                                qualified issuer is licensed to provide 
                                commercial mobile service by the 
                                Federal Communications Commission, or
                                    ``(II) is nominated by a State 
                                Public Utility Commission or local 
                                governing authority for approval as a 
                                qualified advanced broadband 
                                infrastructure project, or by the 
                                Federal Communications Commission under 
                                paragraph (5), and
                            ``(ii) such project is approved by the 
                        Secretary, upon receipt of such a nomination, 
                        as a qualified advanced broadband 
                        infrastructure project or a series of qualified 
                        advanced broadband infrastructure projects.
            ``(3) Transmission speed requirements.--
                    ``(A) In general.--A project complies with the 
                requirements of this subparagraph if it provides each 
                subscribing residential or small business consumer with 
                access to the internet in the normal course of 
                operations at transmission speeds of at least--
                            ``(i) 50 megabits per second downstream and 
                        20 megabits per second upstream, or
                            ``(ii) 10 megabits per second downstream 
                        and 2 megabits per second upstream for the 
                        provision of advanced broadband communications 
                        services using commercial mobile services.
                    ``(B) Transmission speed adjustments.--The 
                Secretary shall adjust the transmission speeds required 
                under clause (i) to reflect the most recent increase in 
                the transmission speed requirements prescribed by the 
                NTIA Administrator under section 159(c) of the National 
                Telecommunications and Information Administration 
                Organization Act. Any adjustment under the preceding 
                sentence shall apply to bonds issued later than 60 days 
                after the date such increase is prescribed by the NTIA 
                Administrator.
            ``(4) Technology neutrality.--The Secretary shall approve 
        projects as qualified advanced broadband infrastructure 
        projects on a technology neutral basis.
            ``(5) Alternate nominating procedure.--If a State Public 
        Utility Commission or local governing authority that receives, 
        from an entity holding a certificate of public convenience and 
        necessity (or the equivalent) described in paragraph 
        (2)(C)(i)(I), a formal request for nomination under paragraph 
        (2)(C)(i)(II) does not act on the nomination within 30 days of 
        the submission of such request, the Federal Communications 
        Commission shall act on such request for nomination within 30 
        days the submission of a notice from such entity of the 
        inaction by such State Public Utility Commission or local 
        governing authority on such formal request.
    ``(d) Other Definitions.--For purposes of this section--
            ``(1) Qualified issuer.--The term `qualified issuer' 
        means--
                    ``(A) a State or local government,
                    ``(B) an entity that has obtained from a State 
                Public Utility Commission or local governing authority 
                a certificate of public convenience and necessity (or 
                the equivalent),
                    ``(C) an entity that has a project that is 
                nominated by a State Public Utility Commission or local 
                governing authority for approval as a qualified 
                advanced broadband infrastructure project, or
                    ``(D) a commercial mobile service provider which is 
                licensed to provide mobile service by the Federal 
                Communication Commission.
            ``(2) NTIA administrator.--The term `NTIA Administrator' 
        means the Administrator of the National Telecommunications and 
        Information Administration within the Department of Commerce, 
        who is the Assistant Secretary of Commerce for Communications 
        and Information.
            ``(3) State regulatory utility commission.--The term `State 
        Regulatory Utility Commission' means the government agency in a 
        State that regulates the entry into and provision of 
        telecommunications services.
    ``(e) Designation Preferences.--
            ``(1) In general.--With respect to designations under this 
        section, preferences shall be given--
                    ``(A) to nominations reflecting expeditious 
                deployment of advanced broadband infrastructure,
                    ``(B) to approved projects serving areas in the 
                following order: unserved areas, underserved areas, and 
                served areas, and
                    ``(C) in the case of a project with respect to a 
                qualified issuer which is a State or local government, 
                to nominations reflecting partnerships and 
                comprehensive planning between State and local 
                governments and the private sector or existing 
                governmental entities that provide telecommunications 
                services, with construction and operation performed by 
                the private sector entity or the existing governmental 
                entity.
            ``(2) Definitions.--For purposes of this subsection--
                    ``(A) Served area.--The term `served area' means an 
                area served by at least 2 wireline broadband service 
                providers.
                    ``(B) Underserved area.--The term `underserved 
                area' means an area served by 1 wireline broadband 
                service provider.
                    ``(C) Unserved area.--The term `unserved area' 
                means an area not served by any wireline broadband 
                service provider.
    ``(f) Failure To Maintain Transmission Speed Requirements.--For 
purposes of subsection (a)(1), the proceeds from the sale of an issue 
shall not be treated as used for a qualified advanced broadband 
infrastructure project to the extent that it is certified to the 
Secretary by the NTIA Administrator under section 159 of the National 
Telecommunications and Information Administration Organization Act that 
the project has failed to meet the applicable transmission speed 
requirements. The Secretary shall, in consultation with the NTIA 
Administrator, prescribe regulations specifying remedial actions that 
may be taken (including conditions to taking such remedial actions) to 
prevent such a failure from causing a bond to fail to be a qualified 
advanced broadband infrastructure bond.
    ``(g) Reporting.--Issuers of qualified advanced broadband 
infrastructure bonds shall submit reports similar to the reports 
required under section 149(e) and shall maintain a file for public 
inspection that contains quarterly certifications by an officer of the 
entity operating the advanced broadband infrastructure that it is 
providing in the course of normal operations advanced broadband 
communication services to each consumer served by the qualified 
advanced broadband infrastructure project. Such reports and 
certifications shall be made available on the issuer's website and 
shall include a description of the use of the proceeds of issues by 
such issuer.''.
    (b) Conforming Amendments.--
            (1) Paragraph (1) of section 54A(d) is amended by striking 
        ``or'' at the end of subparagraph (C), by inserting ``or'' at 
        the end of subparagraph (D), and by inserting after 
        subparagraph (D) the following new subparagraph:
                    ``(E) a qualified advanced broadband infrastructure 
                bond.''.
            (2) Subparagraph (C) of section 54A(d)(2) is amended by 
        striking ``and'' at the end of clause (iii), by striking the 
        period at the end of clause (iv) and inserting ``, and'', and 
        by adding at the end the following new clause:
                            ``(v) in the case of a qualified advanced 
                        broadband infrastructure bond, a purpose 
                        specified in section 54F(a)(1).''.
    (c) Clerical Amendment.--The table of sections for subpart I of 
part IV of subchapter A of chapter 1 is amended by adding at the end 
the following new item:

``Sec. 54F. Credit to holders of qualified advanced broadband 
                            infrastructure bonds.''.
    (d) Effective Date.--The amendments made by this section shall 
apply to obligations issued after the date of enactment of this Act.
    (e) NTIA Responsibilities.--The National Telecommunications and 
Information Administration Organization Act (47 U.S.C. 901 et seq.) is 
amended by adding at the end of part C the following new section:

``SEC. 159. ADVANCED BROADBAND INFRASTRUCTURE BOND PROGRAM.

    ``(a) Initial Certification.--The NTIA shall receive requests for 
approval of qualified advanced broadband infrastructure projects with 
respect to qualified advanced infrastructure bonds under section 54F of 
the Internal Revenue Code of 1986, and, within 30 days of receipt, 
issue a written decision as to whether such project meets the 
requirements of such section relating to qualified advanced broadband 
infrastructure projects.
    ``(b) Monitoring.--The NTIA shall develop a program to monitor the 
implementation of qualified advanced broadband infrastructure projects 
under section 54F of such Code--
            ``(1) to ensure that such projects meet the applicable 
        transmission speed requirements under such section;
            ``(2) to provide notification to any issuer with respect to 
        a project not in compliance with such speed requirements and 
        include in such notice an explanation that if such project 
        fails to satisfy such requirements not later than 60 days after 
        the date of such notice--
                    ``(A) the certification described in paragraph (3) 
                shall be made, and
                    ``(B) the bond with respect to such project risks 
                failing to be a qualified advanced broadband 
                infrastructure bond; and
            ``(3) in the case of a project which does not satisfy such 
        requirements before the expiration of such 60-day period, to 
        certify to the Secretary of the Treasury that such a project 
        has not met such requirements.
    ``(c) Authority To Increase Transmission Speed Requirements.--On 
December 31, 2009, and December 31, 2010, the NTIA shall, after 
providing public notice and an opportunity for comment, issue a 
decision determining whether and by what amount to increase the 
transmission speed requirements of the advanced broadband 
infrastructure bond program under section 54F(c)(3) of the Internal 
Revenue Code of 1986. In reaching the determination, the Assistant 
Secretary shall ensure that the transmission speed requirements reflect 
the fastest speeds currently being offered in a generally available 
service in the normal course of operations to residential and small 
business consumers by wireline broadband service providers.
    ``(d) Annual Report.--The NTIA shall, in consultation with the 
Secretary of the Treasury, transmit to Congress an annual report 
describing the progress in achieving the goals of the advanced 
broadband infrastructure bond program, including for the year upon 
which the report is based--
            ``(1) the monetary value of the bonds issued;
            ``(2) the transmission speeds being deployed by bond 
        issuers;
            ``(3) a description of the qualified advanced broadband 
        infrastructure projects using proceeds from bonds issued under 
        section 54F of such Code; and
            ``(4) the results of any rule-making proceedings carried 
        out under the authority provided in subsection (b), including 
        any changes to the transmission speed requirements of the 
        program.''.
    (f) FCC Responsibilities.--Not later than 45 days after the date of 
enactment of this Act, the Federal Communications Commission shall 
complete a rule-making proceeding to define ``operates advanced 
broadband service networks on an open access basis'', as used in 
section 54F(c)(1)(B) of the Internal Revenue Code of 1986 (as amended 
by subsection (a) of this Act).
                                 <all>