[Congressional Record (Bound Edition), Volume 146 (2000), Part 4]
[House]
[Pages 5591-5610]
[From the U.S. Government Publishing Office, www.gpo.gov]



                    RURAL LOCAL BROADCAST SIGNAL ACT

  Mr. GOODLATTE. Mr. Speaker, pursuant to the order of the House of 
today, I call up the bill (H.R. 3615) to amend the Rural 
Electrification Act of 1936 to ensure improved access to the signals of 
local television stations by multichannel video providers to all 
households which desire such service in unserved and underserved rural 
areas by December 31, 2006, and ask for its immediate consideration.
  The Clerk read the title of the bill.
  Mr. GOODLATTE. Mr. Speaker, I ask unanimous consent that the 
amendment in the nature of a substitute considered as adopted to H.R. 
3615 under the order of the House of earlier today be an amendment in 
the nature of a substitute that I have now placed at the desk which 
shall be considered as read.
  The SPEAKER pro tempore. Is there objection to the request of the 
gentleman from Virginia?
  Mr. STENHOLM. Mr. Speaker, reserving the right to object, I 
understand that this version of the substitute has been changed in 
section 4 from the version of the substitute approved by the Committee 
on Rules.
  Mr. Speaker, can the gentleman from Virginia (Mr. Goodlatte) please 
reassure me that cooperative lenders, such as CoBank and the National 
Rural Utilities Cooperative Finance Corporation, are still eligible to 
participate in the loan program under this bill?
  Mr. GOODLATTE. Mr. Speaker, will the gentleman yield?
  Mr. STENHOLM. I yield to the gentleman from Virginia.
  Mr. GOODLATTE. Mr. Speaker, the gentleman is correct. CFC is 
specifically eligible to participate under the terms of the revised 
bill, and CoBank is an eligible participant for loans made in 
accordance with the regulations of the Federal Farm Credit 
Administration and its governing statute.
  Mr. STENHOLM. Mr. Speaker, reclaiming my time, I thank the gentleman 
very much for that assurance.
  Mr. Speaker, I am pleased that these cooperative lenders are eligible 
to participate. Their demonstrated expertise, capacity, capital 
strength, and experience in providing financing to rural utility bars 
should help to make this program a success.
  Mr. Speaker, I withdraw my reservation of objection.

                              {time}  1645

  The SPEAKER pro tempore (Mr. Hastings of Washington). Is there 
objection to the request of the gentleman from Virginia?
  Mr. LARGENT. Mr. Speaker, I object.
  The SPEAKER pro tempore. Objection is heard.
  Pursuant to the order of the House of today, the bill is considered 
read for amendment.
  The text of H.R. 3615 is as follows:

                               H.R. 3615

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

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``Rural Local Broadcast Signal 
     Act''.

     SEC. 2. FINDINGS.

       Congress makes the following findings:
       (1) In 1936, most of the rural United States did not have 
     access to electrical service enjoyed by the rest of the 
     United States, and this lack of electrical service inhibited 
     economic development in the rural areas of the United States.
       (2) In response to this lack of service, Congress enacted 
     the Rural Electrification Act of 1936 (also known as the 
     Norris-Rayburn Rural Electrification Act) which established 
     the Rural Electric Administration to ensure that all 
     Americans have access to electrical service and to promote 
     rural development.
       (3) The program under the Rural Electrification Act of 1936 
     has successfully brought electricity to all parts of the 
     rural United States and has stimulated rural development 
     throughout the United States.
       (4) In 1949, most of the rural United States did not have 
     access to telephone service enjoyed by the rest of the United 
     States, and this lack of electrical service inhibited 
     economic development in the rural areas of the United States.
       (5) In response to this lack of service, Congress amended 
     the Rural Electrification Act of 1936 to assure that the 
     rural United States has access to telecommunications 
     services, including telephone services, distance learning, 
     and telemedicine in order to promote rural development.
       (6) The programs under these amendments have successfully 
     brought telecommunications to all parts of the United States 
     and has stimulated rural development throughout the United 
     States.
       (7) Public Law 93-32 amended the Rural Electrification Act 
     of 1936 to establish a revolving fund for insured and 
     guaranteed loans.
       (8) The reorganization of the Department of Agriculture by 
     Public Law 103-354 created the Rural Utilities Service (RUS) 
     within the Department of Agriculture and assigned it the 
     responsibility for administering programs of federally-
     guaranteed loans.
       (9) The Rural Utilities Service now manages a portfolio of 
     federally-guaranteed loans in excess of $42,000,000,000.
       (10) The Rural Utilities Service has granted loans for the 
     purpose of telecommunications services to more than 800 
     borrowers, including telephone and electricity cooperatives, 
     in all States of the United States.
       (11) Local television coverage is vitally important for 
     rural development efforts.
       (12) Local television programming broadcasts crop reports, 
     local news, weather reports, public service announcements, 
     and advertisements by local businesses, all of which are 
     important for rural development.
       (13) In today's age of modern communications, rural 
     communities often receive the majority of their information 
     from satellite platforms.
       (14) The rest of the United States, including most of the 
     rural United States, is not able to receive local television 
     signals via satellite.
       (15) Without access to local television signals, the 
     development of the rural United States is greatly inhibited.
       (16) Just as important public purposes were served by 
     bringing electricity to the rural United States and then by 
     bringing telephone service to the rural United States, so the 
     United States would be served by ensuring that the rural 
     United States can receive local television signals via 
     satellite.

[[Page 5592]]

       (17) It is in the public interest that the Rural Utilities 
     Service of the Department of Agriculture utilize existing and 
     new loan guarantee programs to promote rural development by 
     ensuring that the rural United States has access to the 
     signals of local television stations by multichannel video 
     providers.

     SEC. 3. RURAL LOCAL TELEVISION SIGNALS.

       The Rural Electrification Act of 1936 (7 U.S.C. 901 et 
     seq.) is amended by adding at the end the following:

               ``TITLE VI--RURAL LOCAL TELEVISION SIGNALS

     ``SEC. 501. DEFINITIONS.

       ``In this title:
       ``(1) Administrator.--The term `Administrator' means the 
     Administrator of the Rural Utilities Service.
       ``(2) Affiliate.--The term `affiliate' means any person or 
     entity that controls, or is controlled by, or is under common 
     control with, another person or entity.
       ``(3) Borrower.--The term `borrower' means any person or 
     entity receiving a loan guarantee under this title.
       ``(4) Cost.--
       ``(A) In general.--The term `cost' means the estimated 
     long-term cost to the Government of a loan guarantee or 
     modification thereof, calculated on a net present value 
     basis, excluding administrative costs and any incidental 
     effects on governmental receipts or outlays.
       ``(B) Loan guarantees.--For purposes of this paragraph the 
     cost of a loan guarantee--
       ``(i) shall be the net present value, at the time when the 
     guaranteed loan is disbursed, of the estimated cash flows 
     of--

       ``(I) payments by the Government to cover defaults and 
     delinquencies, interest subsidies, or other payments; and
       ``(II) payments to the Government, including origination 
     and other fees, penalties, and recoveries; and

       ``(ii) shall include the effects of changes in loan terms 
     resulting from the exercise by the guaranteed lender of an 
     option included in the loan guarantee contract, or by the 
     borrower of an option included in the guaranteed loan 
     contract.
       ``(C) Cost of modification.--The cost of the modification 
     shall be the difference between the current estimate of the 
     net present value of the remaining cash flows under the terms 
     of a loan guarantee contract, and the current estimate of the 
     net present value of the remaining cash flows under the terms 
     of the contract, as modified.
       ``(D) Discount rate.--In estimating net present value, the 
     discount rate shall be the average interest rate on 
     marketable Treasury securities of similar maturity to the 
     cash flows of the guarantee for which the estimate is being 
     made.
       ``(E) Fiscal year assumptions.--When funds of a loan 
     guarantee under this title are obligated, the estimated cost 
     shall be based on the current assumptions, adjusted to 
     incorporate the terms of the loan contract, for the fiscal 
     year in which the funds are obligated.
       ``(5) Current.--The term `current' has the meaning given 
     that term in section 250(c)(9) of the Balanced Budget and 
     Emergency Deficit Control Act of 1985.
       ``(6) Designated market area.--The term `designated market 
     area' has the meaning given that term in section 122(j) of 
     title 17, United States Code.
       ``(7) Loan guarantee.--The term `loan guarantee' means any 
     guarantee, insurance, or other pledge with respect to the 
     payment of all or part of the principal or interest on any 
     debt obligation of a non-Federal borrower to the Federal 
     Financing Bank or a non-Federal lender, but does not include 
     the insurance of deposits, shares, or other withdrawable 
     accounts in financial institutions.
       ``(8) Modification.--The term `modification' means any 
     Government action that alters the estimated cost of an 
     outstanding loan guarantee (or loan guarantee commitment) 
     from the current estimate of cash flows, including the sale 
     of loan assets, with or without recourse, and the purchase of 
     guaranteed loans.
       ``(9) Common terms.--Except as provided in paragraphs (1) 
     through (9), any term used in this title that is defined in 
     the Communications Act of 1934 (47 U.S.C. 151 et seq.) has 
     the meaning given the term in that Act.

     ``SEC. 502. LOAN GUARANTEES.

       ``(a) Purpose.--The purpose of this title is to enable the 
     Administrator to provide such loan guarantees as are 
     necessary to ensure improved access to the signals of local 
     television stations by multichannel video providers to all 
     households which desire such service in unserved and 
     underserved rural areas by December 31, 2006.
       ``(b) Assistance to Borrowers.--Subject to the 
     appropriations limitation under subsection (c)(2), the 
     Administrator may provide loan guarantees to borrowers to 
     finance projects to provide local television broadcast 
     signals by providers of multichannel video services including 
     direct broadcast satellite licensees and licensees of 
     multichannel multipoint distribution systems, to areas that 
     do not receive local television broadcast signals over 
     commercial for-profit direct-to-home satellite distribution 
     systems. A borrower that receives a loan guarantee under this 
     title may not transfer any part of the proceeds of the monies 
     from the loans guaranteed under this program to an affiliate 
     of the borrower.
       ``(c) Underwriting Criteria; Prerequisites.--
       ``(1) In general.--The Administrator shall administer the 
     underwriting criteria developed under subsection (f)(1) to 
     determine which loans are eligible for a guarantee under this 
     title.
       ``(2) Authority to make loan guarantees.--The Administrator 
     shall be authorized to guarantee loans under this title only 
     to the extent provided for in advance by appropriations Acts.
       ``(3) Prerequisites.--In addition to meeting the 
     underwriting criteria under paragraph (1), a loan is not 
     eligible for a loan guarantee under this title unless--
       ``(A) the loan is made to finance the acquisition, 
     improvement, enhancement, construction, deployment, launch, 
     or rehabilitation of the means by which local television 
     broadcast signals will be delivered to an area not receiving 
     such signals over commercial for-profit direct-to-home 
     satellite distribution systems;
       ``(B) the proceeds of the loan will not be used for 
     operating expenses;
       ``(C) the total amount of all such loans may not exceed in 
     the aggregate $1,250,000,000;
       ``(D) the loan does not exceed $100,000,000, except that 1 
     loan under this title may exceed $100,000,000, but shall not 
     exceed $625,000,000;
       ``(E) the loan bears interest and penalties which, in the 
     Administrator's judgment, are not unreasonable, taking into 
     consideration the prevailing interest rates and customary 
     fees incurred under similar obligations in the private 
     capital market; and
       ``(F) the Administrator determines that taking into account 
     the practices of the private capital markets with respect to 
     the financing of similar projects, the security of the loan 
     is adequate.
       ``(4) Additional criteria.--In addition to the requirements 
     of paragraphs (1), (2), and (3), a loan for which a guarantee 
     is sought under this title shall meet any additional criteria 
     promulgated under subsection (f)(1).
       ``(d) Additional Requirements.--The Administrator may not 
     make a loan guarantee under this title unless--
       ``(1) repayment of the obligation is required to be made 
     within a term of the lesser of--
       ``(A) 25 years from the date of its execution; or
       ``(B) the useful life of the primary assets used in the 
     delivery of relevant signals;
       ``(2) the Administrator has been given the assurances and 
     documentation necessary to review and approve the guaranteed 
     loans; and
       ``(3) the Administrator makes a determination in writing 
     that--
       ``(A) the applicant has given reasonable assurances that 
     the assets, facilities, or equipment will be utilized 
     economically and efficiently;
       ``(B) necessary and sufficient regulatory approvals, 
     spectrum rights, and delivery permissions have been received 
     by project participants to assure the project's ability to 
     repay obligations under this title; and
       ``(C) repayment of the obligation can reasonably be 
     expected, including the use of an appropriate combination of 
     credit risk premiums and collateral offered by the applicant 
     to protect the Federal Government.
       ``(e) Approval of NTIA Required.--
       ``(1) In general.--The Administrator may not issue a loan 
     guarantee under this title unless the National 
     Telecommunications and Information Administration consults 
     with the Administrator and certifies that the issuance of the 
     loan guarantee is consistent with subsection (a).
       ``(2) Certification.--The Administrator shall provide the 
     appropriate information on each loan guarantee application 
     recommended by the Administrator to the National 
     Telecommunications and Information Administration for 
     certification. The National Telecommunications and 
     Information Administration shall make the determination 
     required under this subsection within 90 days, without regard 
     to the provision of chapter 5 of title 5, United States Code, 
     and sections 10 and 11 of the Federal Advisory Committee Act 
     (5 U.S.C. App.).
       ``(f) Requirements.--
       ``(1) In general.--Not later than 180 days after the date 
     of enactment of this title, the Administrator shall consult 
     with an independent public accounting firm to develop 
     underwriting criteria relating to the issuance of loan 
     guarantees, appropriate collateral and cash flow levels for 
     the types of loan guarantees that might be issued under this 
     title, and such other matters as the Administrator determines 
     appropriate.
       ``(2) Authority of administrator.--In lieu of or in 
     combination with appropriations of budget authority to cover 
     the costs of loan guarantees as required under section 
     504(b)(1) of the Federal Credit Reform Act of 1990, the 
     Administrator may accept on behalf of an applicant for 
     assistance under this title a commitment from a non-Federal 
     source to fund in whole or in part the credit risk premiums 
     with respect to the applicant's loan. The aggregate of 
     appropriations of budget authority and credit risk premiums 
     described in this paragraph with respect to a

[[Page 5593]]

     loan guarantee may not be less than the cost of that loan 
     guarantee.
       ``(3) Credit risk premium amount.--The Administrator shall 
     determine the amount required for credit risk premiums under 
     this subsection on the basis of--
       ``(A) the circumstances of the applicant, including the 
     amount of collateral offered;
       ``(B) the proposed schedule of loan disbursements;
       ``(C) the borrower's business plans for providing service;
       ``(D) financial commitment from the broadcast signal 
     provider; and
       ``(E) any other factors the Administrator considers 
     relevant.
       ``(4) Payment of premiums.--Credit risk premiums under this 
     subsection shall be paid to an account established in the 
     Treasury which shall accrue interest and such interest shall 
     be retained by the account, subject to paragraph (5).
       ``(5) Cohorts of loans.--In order to maintain sufficient 
     balances of credit risk premiums to adequately protect the 
     Federal Government from risk of default, while minimizing the 
     length of time the Government retains possession of those 
     balances, the Administrator in consultation with the Office 
     of Management and Budget shall establish cohorts of loans. 
     When all obligations attached to a cohort of loans have been 
     satisfied, credit risk premiums paid for the cohort, and 
     interest accrued thereon, which were not used to mitigate 
     losses shall be returned to the original source on a pro rata 
     basis.
       ``(g) Conditions of Assistance.--A borrower shall agree to 
     such terms and conditions as are sufficient, in the judgment 
     of the Administrator to ensure that, as long as any principal 
     or interest is due and payable on such obligation, the 
     borrower--
       ``(1) will maintain assets, equipment, facilities, and 
     operations on a continuing basis;
       ``(2) will not make any discretionary dividend payments 
     that reduce the ability to repay obligations incurred under 
     this section; and
       ``(3) will remain sufficiently capitalized.
       ``(h) Lien on Interests in Assets.--Upon providing a loan 
     guarantee to a borrower under this title, the Administrator 
     shall have liens which shall be superior to all other liens 
     on assets of the borrower equal to the unpaid balance of the 
     loan subject to such guarantee.
       ``(i) Perfected Interest.--The Administrator and the lender 
     shall have a perfected security interest in those assets of 
     the borrower fully sufficient to protect the Administrator 
     and the lender.
       ``(j) Insurance Policies.--In accordance with practices of 
     private lenders, as determined by the Administrator, the 
     borrower shall obtain, at its expense, insurance sufficient 
     to protect the interests of the Federal Government, as 
     determined by the Administrator.
       ``(k) Authorization of Appropriations.--For the additional 
     costs of the loans guaranteed under this title, including the 
     cost of modifying the loans as defined in section 502 of the 
     Congressional Budget Act of 1974 (2 U.S.C. 661(a)), there are 
     authorized to be appropriated for fiscal years 2000 through 
     2006, such amounts as may be necessary. In addition there are 
     authorized to be appropriated such sums as may be necessary 
     to administer this title. Any amounts appropriated under this 
     subsection shall remain available until expended.

     ``SEC. 503. ADMINISTRATION OF LOAN GUARANTEES.

       ``(a) Applications.--The Administrator shall prescribe the 
     form and contents for an application for a loan guarantee 
     under section 502.
       ``(b) Assignment of Loan Guarantees.--The holder of a loan 
     guaranteed under this title may assign the loan guarantee in 
     whole or in part, subject to such requirements as the 
     Administrator may prescribe.
       ``(c) Modifications.--The Administrator may approve the 
     modification of any term or condition of a loan guarantee 
     including the rate of interest, time of payment of interest 
     or principal, or security requirements, if the Administrator 
     finds in writing that--
       ``(1) the modification is equitable and is in the overall 
     best interests of the United States;
       ``(2) consent has been obtained from the borrower and the 
     lender;
       ``(3) the modification is consistent with the objective 
     underwriting criteria developed in consultation with an 
     independent public accounting firm under section 502(f);
       ``(4) the modification does not adversely affect the 
     Federal Government's interest in the entity's assets or loan 
     collateral;
       ``(5) the modification does not adversely affect the 
     entity's ability to repay the loan; and
       ``(6) the National Telecommunications and Information 
     Administration does not object to the modification on the 
     ground that it is inconsistent with the certification under 
     section 502(e).
       ``(d) Priority Markets.--
       ``(1) In general.--To the maximum extent practicable, the 
     Administrator shall give priority to projects which serve the 
     most underserved rural markets, as determined by the 
     Administrator. In making prioritization determinations, the 
     Administrator shall consider prevailing market conditions, 
     feasibility of providing service, population, terrain, and 
     other factors the Administrator determines appropriate.
       ``(2) Priority relating to consumer costs and separate tier 
     of signals.--The Administrator shall give priority to 
     projects that--
       ``(A) offer a separate tier of local broadcast signals; and
       ``(B) provide lower projected costs to consumers of such 
     separate tier.
       ``(3) Performance schedules.--Applicants for priority 
     projects under this section shall enter into stipulated 
     performance schedules with the Administrator.
       ``(4) Penalty.--The Administrator may assess a borrower a 
     penalty not to exceed 3 times the interest due on the 
     guaranteed loan, if the borrower fails to meet its stipulated 
     performance schedule. The penalty shall be paid to the 
     account established under section 502.
       ``(5) Limitation on consideration of most populated 
     areas.--The Administrator shall not provide a loan guarantee 
     for a project that is primarily designed to serve the 40 most 
     populated designated market areas and shall take into 
     consideration the importance of serving rural markets that 
     are not likely to be otherwise offered service under section 
     122 of title 17, United States Code, except through the loan 
     guarantee program under this title.
       ``(e) Compliance.--The Administrator shall enforce 
     compliance by an applicant and any other party to the loan 
     guarantee for whose benefit assistance is intended, with the 
     provisions of this title, regulations issued hereunder, and 
     the terms and conditions of the loan guarantee, including 
     through regular periodic inspections and audits.
       ``(f) Commercial Validity.--For purposes of claims by any 
     party other than the Administrator, a loan guarantee or loan 
     guarantee commitment shall be conclusive evidence that the 
     underlying obligation is in compliance with the provisions of 
     the title, and that such obligation has been approved and is 
     legal as to principal, interest, and other terms. Such a 
     guarantee or commitment shall be valid and incontestable in 
     the hands of a holder thereof, including the original lender 
     or any other holder, as of the date when the Administrator 
     granted the application therefore, except as to fraud or 
     material misrepresentation by such holder.
       ``(g) Defaults.--The Administrator shall prescribe 
     regulations governing a default on a loan guaranteed under 
     this title.
       ``(h) Rights of the Administrator.--
       ``(1) Subrogation.--If the Administrator authorizes payment 
     to a holder, or a holder's agent, under subsection (g) in 
     connection with a loan guarantee made under section 502, the 
     Administrator shall be subrogated to all of the rights of the 
     holder with respect to the obligor under the loan.
       ``(2) Disposition of property.--The Administrator may 
     complete, recondition, reconstruct, renovate, repair, 
     maintain, operate, rent, sell, or otherwise dispose of any 
     property or other interests obtained under this section in a 
     manner that maximizes taxpayer return and is consistent with 
     the public convenience and necessity.
       ``(i) Action Against Obligor.--The Administrator may bring 
     a civil action in an appropriate district court of the United 
     States in the name of the United States or of the holder of 
     the obligation in the event of a default on a loan guaranteed 
     under this title. The holder of a guarantee shall make 
     available to the Administrator all records and evidence 
     necessary to prosecute the civil action. The Administrator 
     may accept property in full or partial satisfaction of any 
     sums owed as a result of default. If the Administrator 
     receives, through the sale or other disposition of such 
     property, an amount greater than the aggregate of--
       ``(1) the amount paid to the holder of a guarantee under 
     subsection (g); and
       ``(2) any other cost to the United States of remedying the 
     default, the Administrator shall pay such excess to the 
     obligor.
       ``(j) Breach of Conditions.--The Attorney General shall 
     commence a civil action in a court of appropriate 
     jurisdiction to enjoin any activity which the Administrator 
     finds is in violation of this title, regulations issued 
     hereunder, or any conditions which were duly agreed to, and 
     to secure any other appropriate relief, including relief 
     against any affiliate of the borrower.
       ``(k) Attachment.--No attachment or execution may be issued 
     against the Administrator or any property in the control of 
     the Administrator prior to the entry of final judgment to 
     such effect in any State, Federal, or other court.
       ``(l) Investigation Charge and Fees.--
       ``(1) Appraisal fee.--The Administrator may charge and 
     collect from an applicant a reasonable fee for appraisal for 
     the value of the equipment or facilities for which the loan 
     guarantee is sought, and for making necessary determinations 
     and findings. The fee may not, in the aggregate, be more than 
     one-half of one percent of the principal amount of the 
     obligation. The fee imposed under this paragraph shall be 
     used to offset the administrative costs of the program.
       ``(2) Loan origination fee.--The Administrator may charge a 
     loan origination fee.
       ``(m) Annual Audit.--The Comptroller General of the United 
     States shall annually

[[Page 5594]]

     audit the administration of this title and report the results 
     of the audit to the Committee on Agriculture, Nutrition, and 
     Forestry of the Senate and the Committee on Agriculture of 
     the House of Representatives.
       ``(n) Indemnification.--An affiliate of the borrower shall 
     indemnify the Government for any losses it incurs as a result 
     of--
       ``(1) a judgment against the borrower;
       ``(2) any breach by the borrower of its obligations under 
     the loan guarantee agreement;
       ``(3) any violation of the provisions of this title by the 
     borrower;
       ``(4) any penalties incurred by the borrower for any 
     reason, including the violation of the stipulated 
     performance; and
       ``(5) any other circumstances that the Administrator 
     determines to be appropriate.
       ``(o) Sunset.--The Administrator may not approve a loan 
     guarantee under this title after December 31, 2006.

     ``SEC. 504. RETRANSMISSION OF LOCAL TELEVISION BROADCAST 
                   STATIONS.

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

  The SPEAKER pro tempore. The amendment now at the desk is adopted in 
lieu of the amendment printed in the bill.
  The text of H.R. 3615, as amended, is as follows:

       Strike all after the enacting clause and insert the 
     following:

     SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

       (a) Short Title.--This Act may be cited as the ``Rural 
     Local Broadcast Signal Act''.
       (b) Table of Contents.--The table of contents of this Act 
     is as follows:

Sec. 1. Short title; table of contents.
Sec. 2. Purpose.
Sec. 3. Rural television loan guarantee board.
Sec. 4. Approval of loan guarantees.
Sec. 5. Administration of loan guarantees.
Sec. 6. Prohibition on use of funds for spectrum auctions.
Sec. 7. Prohibition on use of funds by incumbent cable operators.
Sec. 8. Annual audit.
Sec. 9. Exemption from must carry requirements.
Sec. 10. Additional availability of broadcast signals in rural areas.
Sec. 11. Improved cellular service in rural areas.
Sec. 12. Technical amendment.
Sec. 13. Definitions.
Sec. 14. Authorizations of appropriations.
Sec. 15. Sunset.

     SEC. 2. PURPOSE.

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

     SEC. 3. RURAL TELEVISION LOAN GUARANTEE BOARD.

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

     SEC. 4. APPROVAL OF LOAN GUARANTEES.

       (a) Authority To Approve Loan Guarantees.--Subject to the 
     provisions of this section and consistent with the purpose of 
     this Act, the Board may approve loan guarantees under this 
     Act.
       (b) Regulations.--
       (1) Requirements.--The Administrator (as defined in section 
     5 of this Act), under the direction of and for approval by 
     the Board, shall prescribe regulations to implement the 
     provisions of this Act and shall do so not later than 120 
     days after funds authorized to be appropriated under section 
     15 of this Act have been appropriated in a bill signed into 
     law.
       (2) Elements.--The regulations prescribed under paragraph 
     (1) shall--
       (A) set forth the form of any application to be submitted 
     to the Board under this Act;
       (B) set forth time periods for the review and consideration 
     by the Board of applications to be submitted to the Board 
     under this Act, and for any other action to be taken by the 
     Board with respect to such applications;
       (C) provide appropriate safeguards against the evasion of 
     the provisions of this Act;
       (D) set forth the circumstances in which an applicant, 
     together with any affiliate of an applicant, shall be treated 
     as an applicant for a loan guarantee under this Act;
       (E) include requirements that appropriate parties submit to 
     the Board any documents and assurances that are required for 
     the administration of the provisions of this Act; and
       (F) include such other provisions consistent with the 
     purpose of this Act as the Board considers appropriate.
       (3) Construction.--(A) Nothing in this Act shall be 
     construed to prohibit the Board from requiring, to the extent 
     and under circumstances considered appropriate by the Board, 
     that affiliates of an applicant be subject to certain 
     obligations of the applicant as a condition to the approval 
     or maintenance of a loan guarantee under this Act.
       (B) If any provision of this Act or the application of such 
     provision to any person or entity or circumstance is held to 
     be invalid by a court of competent jurisdiction, the 
     remainder of this Act, or the application of such provision 
     to such person or entity or circumstance other than those as 
     to which it is held invalid, shall not be affected thereby.
       (c) Authority Limited by Appropriations Acts.--The Board 
     may approve loan guarantees under this Act only to the extent 
     provided for in advance in appropriations Acts.
       (d) Requirements and Criteria Applicable to Approval.--
       (1) In general.--The Board shall utilize the underwriting 
     criteria developed under subsection (g), and any relevant 
     information provided by the departments and agencies with 
     which the Board consults under section 3, to determine which 
     loans may be eligible for a loan guarantee under this Act.
       (2) Prerequisites.--In addition to meeting the underwriting 
     criteria under paragraph (1), a loan may not be guaranteed 
     under this Act unless--
       (A) the loan is made to finance the acquisition, 
     improvement, enhancement, construction, deployment, launch, 
     or rehabilitation of the means by which local television 
     broadcast signals will be delivered principally to an 
     unserved area or an underserved area (or both);
       (B) the proceeds of the loan will not be used for 
     operating, advertising, or promotion expenses;
       (C) the proposed project, as determined by the National 
     Telecommunications and Information Administration, is not 
     likely to have a substantial adverse impact on competition 
     that outweighs the benefits of improving access to the 
     signals of a local television station in an unserved area or 
     an underserved area (or both), and is commercially viable;
       (D) the loan is provided by--
       (i) an insured depository institution (as that term is 
     defined in section 3 of the Federal Deposit Insurance Act) 
     that is acceptable to the Board;
       (ii) a lender that is acceptable to the Board, and--

       (I) has not fewer than one issue of outstanding debt that 
     is related within the highest three rating categories of a 
     nationally recognized statistical rating agency; or
       (II) has provided financing to entities with outstanding 
     debt from the Rural Utilities Service and which possess, in 
     the judgment of the Board, the expertise, capacity, and 
     capital strength to provide financing pursuant to this Act; 
     or

       (iii) a nonprofit corporation, including the National Rural 
     Utilities Cooperative Finance Corporation, engaged primarily 
     in commercial lending, if the Board determines that such 
     nonprofit corporation has one or more issues of outstanding 
     long-term debt that is rated within the highest 3 rating 
     categories of a nationally recognized statistical rating 
     organization, and, if the Board determines that the making of 
     the loan by such nonprofit corporation will cause a decline 
     in the debt rating mentioned above, the Board at its 
     discretion may disapprove the loan guarantee on this basis;
       (E) the loan (including Other Debt as defined in subsection 
     (f)(2)(B)) is not provided by a lender that is a governmental 
     entity, the Federal Agricultural Mortgage Corporation, any 
     institution supervised by the Office

[[Page 5595]]

     of Federal Housing Enterprise Oversight, the Federal Housing 
     Finance Board, or any affiliate of any such entity;
       (F) the loan has terms, in the judgment of the Board, that 
     are consistent in material respects with the terms of similar 
     obligations in the private capital market;
       (G) repayment of the loan is required to be made within a 
     term of the lesser of--
       (i) 25 years from the date of the execution of the loan; or
       (ii) the economically useful life, as determined by the 
     Board or in consultation with persons or entities deemed 
     appropriate by the Board, of the primary assets to be used in 
     the delivery of the signals concerned; and
       (H) the loan meets any additional criteria developed under 
     subsection (g).
       (3) Protection of united states financial interests.--The 
     Board may not approve the guarantee of a loan under this Act 
     unless--
       (A) the Board has been given documentation, assurances, and 
     access to information, persons, and entities necessary, as 
     determined by the Board, to address issues relevant to the 
     review of the loan by the Board for purposes of this Act; and
       (B) the Board makes a determination in writing that--
       (i) to the best of its knowledge upon due inquiry, the 
     assets, facilities, or equipment covered by the loan will be 
     utilized economically and efficiently;
       (ii) the terms, conditions, security, and schedule and 
     amount of repayments of principal and the payment of interest 
     with respect to the loan protect the financial interests of 
     the United States and are reasonable;
       (iii) to the extent possible, the value of collateral 
     provided by an applicant is at least equal to the unpaid 
     balance of the loan amount covered by the loan guarantee (the 
     ``Amount'' for purposes of this clause); and if the value of 
     collateral provided by an applicant is less than the Amount, 
     the additional required collateral is provided by any 
     affiliate of the applicant; and if the combined value of 
     collateral provided by an applicant and any affiliate is not 
     at least equal to the Amount, the collateral from such 
     affiliate represents all of such affiliate's assets;
       (iv) all necessary and required regulatory and other 
     approvals, spectrum rights, and delivery permissions have 
     been received for the loan, the project under the loan, and 
     the Other Debt, if any, under subsection (f)(2)(B);
       (v) the loan would not be available on reasonable terms and 
     conditions without a loan guarantee under this Act; and
       (vi) repayment of the loan can reasonably be expected.
       (e) Considerations.--
       (1) Type of market.--
       (A) Priority considerations.--To the maximum extent 
     practicable, the Board shall give priority in the approval of 
     loan guarantees under this Act in the following order: First, 
     to projects that will serve the greatest number of households 
     in unserved areas and the number of States (including 
     noncontiguous States); and second, to projects that will 
     serve the greatest number of households in underserved areas. 
     In each instance, the Board shall consider the project's 
     estimated cost per household to be served.
       (B) Prohibition.--The Board may not approve a loan 
     guarantee under this Act for a project that is designed 
     primarily to serve 1 or more of the 40 most populated 
     designated market areas (as that term is defined in section 
     122(j) of title 17, United States Code).
       (2) Other considerations.--The Board shall consider other 
     factors, which shall include projects that would--
       (A) offer a separate tier of local broadcast signals;
       (B) provide lower projected costs to consumers of such 
     separate tier; and
       (C) enable the delivery of local broadcast signals 
     consistent with the purpose of this Act by a means reasonably 
     compatible with existing systems or devices predominantly in 
     use.
       (f) Guarantee Limits.--
       (1) Limitation on aggregate value of loans.--The aggregate 
     value of all loans for which loan guarantees are issued under 
     this Act (including the unguaranteed portion of loans issued 
     under paragraph (2)(A)) and Other Debt under paragraph (2)(B) 
     may not exceed $1,250,000,000.
       (2) Guarantee level.--A loan guarantee issued under this 
     Act--
       (A) may not exceed an amount equal to 80 percent of a loan 
     meeting in its entirety the requirements of subsection 
     (d)(2)(A). If only a portion of a loan meets the requirements 
     of that subsection, the Board shall determine that percentage 
     of the loan meeting such requirements (the ``applicable 
     portion'') and may issue a loan guarantee in an amount not 
     exceeding 80 percent of the applicable portion; or
       (B) may, as to a loan meeting in its entirety the 
     requirements of subsection (d)(2)(A), cover the amount of 
     such loan only if that loan is for an amount not exceeding 80 
     percent of the total debt financing for the project, and 
     other debt financing (also meeting in its entirety the 
     requirements of subsection (d)(2)(A)) from the same source 
     for a total amount not less than 20 percent of the total debt 
     financing for the project (``Other Debt'') has been approved.
       (g) Underwriting Criteria.--Within the period provided for 
     under subsection (b)(1), the Board shall, in consultation 
     with the Director of the Office of Management and Budget and 
     an independent public accounting firm, develop underwriting 
     criteria relating to the guarantee of loans that are 
     consistent with the purpose of this Act, including 
     appropriate collateral and cash flow levels for loans 
     guaranteed under this Act, and such other matters as the 
     Board considers appropriate.
       (h) Credit Risk Premiums.--
       (1) Establishment and acceptance.--The Board may establish 
     and approve the acceptance of credit risk premiums with 
     respect to a loan guarantee under this Act in order to cover 
     the cost, as determined under section 504(b)(1) of the 
     Federal Credit Reform Act of 1990, of the loan guarantee. To 
     the extent that appropriations of budget authority are 
     insufficient to cover the cost, as so determined, of a loan 
     guarantee under this Act, credit risk premiums shall be 
     accepted from a non-Federal source under this subsection on 
     behalf of the applicant for the loan guarantee.
       (2) Credit risk premium amount.--
       (A) In general.--The Board shall determine the amount of 
     any credit risk premium to be accepted with respect to a loan 
     guarantee under this Act on the basis of--
       (i) the financial and economic circumstances of the 
     applicant for the loan guarantee, including the amount of 
     collateral offered;
       (ii) the proposed schedule of loan disbursements;
       (iii) the business plans of the applicant for providing 
     service;
       (iv) any financial commitment from a broadcast signal 
     provider; and
       (v) the concurrence of the Director of the Office of 
     Management and Budget as to the amount of the credit risk 
     premium.
       (B) Proportionality.--To the extent that appropriations of 
     budget authority are sufficient to cover the cost, as 
     determined under section 504(b)(1) of the Federal Credit 
     Reform Act of 1990, of loan guarantees under this Act, the 
     credit risk premium with respect to each loan guarantee shall 
     be reduced proportionately.
       (C) Payment of premiums.--Credit risk premiums under this 
     subsection shall be paid to an account (the ``Escrow 
     Account'') established in the Treasury which shall accrue 
     interest and such interest shall be retained by the account, 
     subject to subparagraph (D).
       (D) Deductions from escrow account.--If a default occurs 
     with respect to any loan guaranteed under this Act and the 
     default is not cured in accordance with the terms of the 
     underlying loan or loan guarantee agreement, the 
     Administrator, in accordance with subsections (h) and (i) of 
     section 5 of this Act, shall liquidate, or shall cause to be 
     liquidated, all assets collateralizing such loan as to which 
     it has a lien or security interest. Any shortfall between the 
     proceeds of the liquidation net of costs and expenses 
     relating to the liquidation, and the guarantee amount paid 
     pursuant to this Act shall be deducted from funds in the 
     Escrow Account and credited to the Administrator for payment 
     of such shortfall. At such time as determined under 
     subsection (d)(2)(G) when all loans guaranteed under this Act 
     have been repaid or otherwise satisfied in accordance with 
     this Act and the regulations promulgated hereunder, remaining 
     funds in the Escrow Account, if any, shall be refunded, on a 
     pro rata basis, to applicants whose loans guaranteed under 
     this Act were not in default, or where any default was cured 
     in accordance with the terms of the underlying loan or loan 
     guarantee agreement.
       (i) Judicial Review.--The decision of the Board to approve 
     or disapprove the making of a loan guarantee under this Act 
     shall not be subject to judicial review.

     SEC. 5. ADMINISTRATION OF LOAN GUARANTEES.

       (a) In General.--The Administrator of the Rural Utilities 
     Service (in this Act referred to as the ``Administrator'') 
     shall issue and otherwise administer loan guarantees that 
     have been approved by the Board in accordance with sections 3 
     and 4 of this Act.
       (b) Security for Protection of United States Financial 
     Interests.--
       (1) Terms and conditions.--An applicant shall agree to such 
     terms and conditions as are satisfactory, in the judgment of 
     the Board, to ensure that, as long as any principal or 
     interest is due and payable on a loan guaranteed under this 
     Act, the applicant--
       (A) shall maintain assets, equipment, facilities, and 
     operations on a continuing basis;
       (B) shall not make any discretionary dividend payments that 
     impair its ability to repay obligations guaranteed under this 
     Act;
       (C) shall remain sufficiently capitalized; and
       (D) shall submit to, and cooperate fully with, any audit of 
     the applicant under section 8(a)(2) of this Act.
       (2) Collateral.--
       (A) Existence of adequate collateral.--An applicant shall 
     provide the Board such documentation as is necessary, in the 
     judgment of the Board, to provide satisfactory evidence that 
     appropriate and adequate collateral secures a loan guaranteed 
     under this Act.
       (B) Form of collateral.--Collateral required by 
     subparagraph (A) shall consist solely of assets of the 
     applicant, any affiliate of the applicant, or both (whichever 
     the

[[Page 5596]]

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

     SEC. 6. PROHIBITION ON USE OF FUNDS FOR SPECTRUM AUCTIONS.

       Notwithstanding any other provision of this Act, no loan 
     guarantee under this Act may be granted or used to provide 
     funds for the acquisition of licenses for the use of spectrum 
     in any competitive bidding under section 309(j) of the 
     Communications Act of 1934 (47 U.S.C. 309(j)).

     SEC. 7. PROHIBITION ON USE OF FUNDS BY INCUMBENT CABLE 
                   OPERATORS.

       Notwithstanding any other provision of this Act, no loan 
     guarantee under this Act may be granted or used to provide 
     funds for--
       (1) the extension of any cable system to any area or areas 
     for which the cable operator of such cable system has a cable 
     franchise, if such franchise obligates the operator to extend 
     such system to such area or areas; or

[[Page 5597]]

       (2) the upgrading or enhancement of the services provided 
     over any cable system, unless such upgrading or enhancement 
     is principally undertaken to extend services to areas outside 
     of the previously existing franchise area of the cable 
     operator.

     SEC. 8. ANNUAL AUDIT.

       (a) Requirement.--The Comptroller General of the United 
     States shall conduct on an annual basis an audit of--
       (1) the administration of the provisions of this Act; and
       (2) the financial position of each applicant who receives a 
     loan guarantee under this Act, including the nature, amount, 
     and purpose of investments made by the applicant.
       (b) Report.--The Comptroller General shall submit to the 
     Congress a report on each audit conducted under subsection 
     (a).

     SEC. 9. EXEMPTION FROM MUST CARRY REQUIREMENTS.

       A facility of a satellite carrier, cable system, or other 
     multichannel video programming distributor that is financed 
     with a loan guaranteed under this Act and that delivers local 
     broadcast signals in a television market pursuant to the 
     provisions of section 338, 614, or 615 of the Communications 
     Act of 1934 (47 U.S.C. 338, 534, or 535) shall not be 
     required to carry in such market a greater number of local 
     broadcast signals than the number of such signals that is 
     carried by the cable system serving the largest number of 
     subscribers in such market.

     SEC. 10. ADDITIONAL AVAILABILITY OF BROADCAST SIGNALS IN 
                   RURAL AREAS.

       (a) Opening of Filing for Additional Translator and Low-
     Power Stations.--The Federal Communications Commission shall, 
     in accordance with its regulations, open a filing period 
     window for the acceptance of applications for television 
     translator stations and low-power television stations in 
     rural areas.
       (b) Deadlines for Notice.--The Commission shall announce 
     the filing period window no less than 90 days prior to the 
     commencement of the window.

     SEC. 11. IMPROVED CELLULAR SERVICE IN RURAL AREAS.

       (a) Reinstatement of Applicants as Tentative Selectees.--
       (1) In General.--Notwithstanding the order of the Federal 
     Communications Commission in the proceeding described in 
     paragraph (3), the Commission shall--
       (A) reinstate each applicant as a tentative selectee under 
     the covered rural service area licensing proceeding; and
       (B) permit each applicant to amend its application, to the 
     extent necessary to update factual information and to comply 
     with the rules of the Commission, at any time before the 
     Commission's final licensing action in the covered rural 
     service area licensing proceeding.
       (2) Exemption from petitions to deny.--For purposes of the 
     amended applications filed pursuant to paragraph (1)(B), the 
     provisions of section 309(d)(1) of the Communications Act of 
     1934 (47 U.S.C. 309(d)(1)) shall not apply.
       (3) Proceeding.--The proceeding described in this paragraph 
     is the proceeding of the Commission In re Applications of 
     Cellwave Telephone Services L.P, Futurewave General Partners 
     L.P., and Great Western Cellular Partners, 7 FCC Rcd No. 19 
     (1992).
       (b) Continuation of License Proceeding; Fee Assessment.--
       (1) Award of licenses.--The Commission shall award licenses 
     under the covered rural service area licensing proceeding 
     within 90 days after the date of the enactment of this Act.
       (2) Service requirements.--The Commission shall provide 
     that, as a condition of an applicant receiving a license 
     pursuant to the covered rural service area licensing 
     proceeding, the applicant shall provide cellular 
     radiotelephone service to subscribers in accordance with 
     sections 22.946 and 22.947 of the Commission's rules (47 CFR 
     22.946, 22.947); except that the time period applicable under 
     section 22.947 of the Commission's rules (or any successor 
     rule) to the applicants identified in subparagraphs (A) and 
     (B) of subsection (d)(1) shall be 3 years rather than 5 years 
     and the waiver authority of the Commission shall apply to 
     such 3-year period.
       (3) Calculation of license fee.--
       (A) Fee required.--The Commission shall establish a fee for 
     each of the licenses under the covered rural service area 
     licensing proceeding. In determining the amount of the fee, 
     the Commission shall consider--
       (i) the average price paid per person served in the 
     Commission's Cellular Unserved Auction (Auction No. 12); and
       (ii) the settlement payments required to be paid by the 
     permittees pursuant to the consent decree set forth in the 
     Commission's order, In re the Tellesis Partners (7 FCC Rcd 
     3168 (1992)), multiplying such payments by two.
       (B) Notice of fee.--Within 30 days after the date an 
     applicant files the amended application permitted by 
     subsection (a)(1)(B), the Commission shall notify each 
     applicant of the fee established for the license associated 
     with its application.
       (4) Payment for licenses.--No later than 18 months after 
     the date that an applicant is granted a license, each 
     applicant shall pay to the Commission the fee established 
     pursuant to paragraph (3) for the license granted to the 
     applicant under paragraph (1).
       (5) Auction authority.--If, after the amendment of an 
     application pursuant to subsection (a)(1)(B), the Commission 
     finds that the applicant is ineligible for grant of a license 
     to provide cellular radiotelephone services for a rural 
     service area or the applicant does not meet the requirements 
     under paragraph (2) of this subsection, the Commission shall 
     grant the license for which the applicant is the tentative 
     selectee (pursuant to subsection (a)(1)(B) by competitive 
     bidding pursuant to section 309(j) of the Communications Act 
     of 1934 (47 U.S.C. 309(j)).
       (c) Prohibition of Transfer.--During the 5-year period that 
     begins on the date that an applicant is granted any license 
     pursuant to subsection (a), the Commission may not authorize 
     the transfer or assignment of that license under section 310 
     of the Communications Act of 1934 (47 U.S.C. 310). Nothing in 
     this Act may be construed to prohibit any applicant granted a 
     license pursuant to subsection (a) from contracting with 
     other licensees to improve cellular telephone service.
       (d) Definitions.--For the purposes of this section, the 
     following definitions shall apply:
       (1) Applicant.--The term ``applicant'' means--
       (A) Great Western Cellular Partners, a California general 
     partnership chosen by the Commission as tentative selectee 
     for RSA #492 on May 4, 1989;
       (B) Monroe Telephone Services L.P., a Delaware limited 
     partnership chosen by the Commission as tentative selectee 
     for RSA #370 on August 24, 1989 (formerly Cellwave Telephone 
     Services L.P.); and
       (C) FutureWave General Partners L.P., a Delaware limited 
     partnership chosen by the Commission as tentative selectee 
     for RSA #615 on May 25, 1990.
       (2) Commission.--The term ``Commission'' means the Federal 
     Communications Commission.
       (3) Covered rural service area licensing proceeding.--The 
     term ``covered rural service area licensing proceeding'' 
     means the proceeding of the Commission for the grant of 
     cellular radiotelephone licenses for rural service areas #492 
     (Minnesota 11), #370 (Florida 11), and #615 (Pennsylvania 4).
       (4) Tentative selectee.--The term ``tentative selectee'' 
     means a party that has been selected by the Commission under 
     a licensing proceeding for grant of a license, but has not 
     yet been granted the license because the Commission has not 
     yet determined whether the party is qualified under the 
     Commission's rules for grant of the license.

     SEC. 12. TECHNICAL AMENDMENT.

       Section 339(c) of the Communications Act of 1934 (47 U.S.C. 
     339(c)) is amended by adding at the end the following new 
     paragraph:
       ``(5) Definition.--Notwithstanding subsection (d)(4), for 
     purposes of paragraphs (2) and (4) of this subsection, the 
     term `satellite carrier' includes a distributor (as defined 
     in section 119(d)(1) of title 17, United States Code), but 
     only if the satellite distributor's relationship with the 
     subscriber includes billing, collection, service activation, 
     and service deactivation.''.

     SEC. 13. DEFINITIONS.

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

     SEC. 14. AUTHORIZATIONS OF APPROPRIATIONS.

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

[[Page 5598]]

       (c) Availability.--Any amounts appropriated pursuant to the 
     authorizations of appropriations in subsections (a) and (b) 
     shall remain available until expended.

     SEC. 16. SUNSET.

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

  The SPEAKER pro tempore. The gentleman from Virginia (Mr. Goodlatte), 
the gentleman from Texas (Mr. Stenholm), the gentleman from Louisiana 
(Mr. Tauzin), and the gentleman from Massachusetts (Mr. Markey) each 
will control 15 minutes.
  The Chair recognizes the gentleman from Virginia (Mr. Goodlatte).
  Mr. GOODLATTE. Mr. Speaker, I yield myself such time as I may 
consume.
  Mr. Speaker, like many of my colleagues here today, I represent a 
congressional district that is not near a large urban center. The 
largest city in my district, Roanoke, has a population of slightly more 
than 100,000 people. However, folks in cities as large as Roanoke, 
Virginia; Honolulu, Hawaii; and Springfield, Missouri, are unlikely to 
benefit from the most important parts of legislation enacted last fall 
known as the Satellite Home Viewer Act.
  This legislation, which I served as a conferee on with many of my 
colleagues here today, was designed to address a problem experienced by 
thousands of Americans who are frustrated that they either could not 
receive their local network signal or had to receive a poor quality 
local network signal through a rooftop antenna rather than receive a 
network signal through their satellite provider. The bill addressed 
this by allowing direct broadcast satellite providers to immediately 
begin retransmitting local television broadcast signals into the 
broadcast station's area.
  Consumers across the country expressed their support for this 
legislation and the availability of ``local-into-local'' technology. I 
know my office received thousands of letters and calls from 
constituents concerned about this issue. This new law allows satellite 
providers to become more effective competitors to cable operators who 
have been able to provide local over-the-air broadcast stations to 
their subscribers for years. It will also benefit American consumers in 
markets where local TV via satellite is made available by offering them 
full service digital television at an affordable price.
  More importantly, these consumers will benefit from local news, 
weather reports, information such as natural disasters or community 
emergencies, local sports, politics and election information as well as 
other information that is vital to the integrity of communities across 
the country. Local TV via satellite is already available to satellite 
subscribers in America's 20 largest television markets. In these 
markets, DirecTV and Echostar, the existing satellite platform 
providers, have begun retransmission of affiliates of the ABC, CBS, 
NBC, and Fox broadcast networks. DirecTV and Echostar have also 
announced their intention to begin retransmission of local TV stations 
in an additional 20 or 30 television markets over the next 24 months.
  Ultimately, the two existing satellite platform providers will 
provide local TV via satellite to households in most if not all of the 
50 largest television markets in the United States. However, there are 
211 television markets in the United States, and in excess of 100 
million U.S. TV households. As this chart illustrates, the red dots 
indicate cities that have been served effective January 31 of this 
year, and the yellow dots are announced or probable cities. The rest of 
the country, including 161 television markets, is not going to be 
served by the legislation we passed last fall.
  Therefore, if matters are left solely to the initiative of the 
existing satellite platform providers, more than 50 percent of existing 
satellite subscribers, over 6 million households, will continue to be 
deprived of their local TV stations; more than 60 percent of existing 
commercial television stations, over 1,000, will not be available via 
satellite; and more than 30 million U.S. TV households will remain 
beyond the reach of local TV via satellite. Put another way, local TV 
via satellite will not be available in 27 States.
  So while the law enacted last fall has eliminated the legal barriers 
to delivery of local TV via satellite, it alone will not assure 
delivery of local TV via satellite to the majority of local TV stations 
and satellite subscribers. For that reason I have joined with my 
colleagues in the House to introduce legislation that will assure that 
all Americans, not just those in the most profitable urban markets, did 
receive their local TV signals in a way that provides local information 
in a competitive environment for consumers.
  This legislation represents a hard-fought compromise between versions 
reported by the House Agriculture and House Commerce Committees. I want 
to express my appreciation to members of both committees for their 
willingness to work together to reach this agreement. The substitute 
authorizes the administrator of the Rural Utilities Service, with the 
approval of the National Telecommunications and Information 
Administration, to administer loan guarantees not exceeding $1.25 
billion for providing local broadcast TV signals in unserved and 
underserved markets.
  The loan guarantees will be approved by a board consisting of the 
Secretaries of Agriculture, Commerce and Treasury. The loan guarantee 
may not exceed 80 percent of a loan, and the board may not approve a 
loan guarantee for a project that is designed to serve primarily one or 
more of the top 40 markets. The substitute also includes restrictions 
on which lending institutions can qualify for loan guarantees. Under 
this compromise, the board should give priority consideration first to 
unserved areas, then to underserved areas.
  Unserved areas are defined as areas outside Grade B where there is no 
access to local signals from a for-profit multichannel video provider. 
Underserved areas are defined as those areas outside Grade A where 
there is no more than one for-profit multichannel video provider. In 
addition, the compromise requires that the value of collateral provided 
by the applicant must be at least equal to the unpaid balance of the 
loan amount covered by the loan guarantee. The loan guarantee may not 
be used for the acquisition of spectrum and funds cannot be used by 
incumbent cable companies in their own franchise territories.
  In addition, under the compromise, the system providing local signals 
shall not be required to carry in a market a greater number of local 
broadcast signals than the number of such signals that is carried by 
the cable system serving the largest number of subscribers in that 
market. This is different than the version of the legislation that I 
introduced which applied full must-carry rules to the program.
  Mr. Speaker, legislation similar to this bill was sponsored by 
Senators Gramm and Burns and passed the Senate on March 30 by a vote of 
97-0. I want to particularly thank Senator Gramm and Senator Burns for 
their help. Senator Burns represents the State of Montana, a rural area 
that is vitally impacted by this legislation; and he is to be commended 
for his leadership in the Senate as is Senator Gramm for his leadership 
in getting this, legislation passed through the United States Senate.
  The bill is crucial for Americans in rural and smaller markets who 
rely on their local television stations for news, politics, weather, 
sports, and emergency information. Local television is often the only 
lifeline folks have in cases of natural disasters such as hurricanes, 
tornadoes, blizzards, earthquakes, or flooding. The bill's language to 
encourage the delivery of local television signals to these 
constituents in America will not only benefit consumers, it will save 
lives.
  Mr. Speaker, in closing, I want to thank several individuals here, 
most importantly my colleague from my adjoining district in Virginia 
(Mr. Boucher) whose leadership both in the conference last year and 
getting us to this point in this legislative process today has been 
absolutely vital. He too has a district like mine that badly needs this 
legislation, but he too recognizes the importance of this to all of 
America. I also want to thank the gentleman from

[[Page 5599]]

Louisiana (Mr. Tauzin), the chairman of the subcommittee, who has been 
vitally important in crafting good legislation in the Committee on 
Commerce and his full committee chairman, the gentleman from Virginia 
(Mr. Bliley), for their input. In the Committee on the Judiciary, the 
gentleman from North Carolina (Mr. Coble) and the gentleman from 
Illinois (Mr. Hyde) have made a great contribution. And then the 
primary committee, the Committee on Agriculture, the gentleman from 
Texas (Mr. Combest) and the gentleman from Texas (Mr. Stenholm), have 
also provided valuable support for this legislation. I thank them all.
  Mr. Speaker, I reserve the balance of my time.
  Mr. STENHOLM. Mr. Speaker, I yield myself 3 minutes.
  Mr. Speaker, I rise in support of H.R. 3615. H.R. 3615 was introduced 
on February 10, 2000, and was referred to three different committees, 
Judiciary, Commerce and Agriculture. The House Committee on Agriculture 
unanimously approved this bill on February 16. The Committee on 
Commerce approved their version on March 29. The Committee on the 
Judiciary was discharged from consideration on March 31. The 
legislation before us today is a compromise between the agriculture and 
commerce committees. The bill establishes a loan guarantee program 
within the United States Department of Agriculture Rural Utilities 
Service for the purpose of providing local broadcast television 
signals.
  This bill under consideration today was originally included as a 
provision in the Satellite Home Viewer Improvement Act that was enacted 
last year. Unfortunately, these provisions were deleted from the final 
version of the bill. The Satellite Home Viewer Improvement Act permits 
satellite companies to retransmit local network signals back into its 
local market area and gives consumers greater access to network 
television stations by allowing satellite television companies to 
effectively compete with cable television providers.
  Today's rural Americans do not benefit from the competition provided 
in the Satellite Home Viewer Improvement Act. DirecTV and Echostar, the 
U.S.'s only satellite television providers, will not offer local-into-
local broadcast television service in rural television markets. The 
loan guarantee proposed by H.R. 3615 will make it technologically and 
financially feasible for entities to develop technologies that will 
bring local-into-local broadcast television service to smaller rural 
television markets.
  I am pleased that cooperative lenders such as CoBank and the National 
Rural Utilities Cooperative Finance Corporation are eligible to 
participate in the loan guarantee program under section 4(d) of the 
bill. Their expertise, capacity, capital strength, and experience in 
providing financing to rural utility service borrowers should help to 
make this program a success. People living in rural areas need to have 
access to their local broadcasters' programming, local news, weather, 
sports, and, most importantly, emergency information services. Local 
television is one of our most vital safety information sources in times 
of natural disasters or other emergencies. This legislation promises to 
both improve consumer quality of life and more importantly save lives.
  Mr. Speaker, I urge my colleagues to support this legislation.
  Mr. Speaker, I reserve the balance of my time.
  Mr. TAUZIN. Mr. Speaker, I yield myself such time as I may consume.
  Mr. Speaker, I rise in strong support of this bill and urge my 
colleagues to do so, too. Last year this Congress passed a bill that 
would enable satellite carriers to provide consumers with access to 
their local broadcast signals, but there is a problem. It is because 
satellite carriers by their own admission have no capacity and no plans 
to offer this new local-into-local service to the Nation's smallest 
markets. They plan to offer them to the top 70 markets approximately, 
serving about 70 percent of American television households. That leaves 
out 30 percent of American households and well over 100 smaller 
markets.
  Now, this bill will remedy that. The bill authorizes the Department 
of Agriculture to provide up to $1.25 billion in loan guarantees, not 
loans, loan guarantees, to cable and satellite companies that plan to 
offer this local-into-local broadcast service to rural consumers across 
America. It is important to note that while local-into-local satellite 
technology is an important step, it is not the only technology that 
might be capable of achieving this objective. A variety of terrestrial 
services, for example, both wireless and wired can serve the same goal 
and hopefully will.
  It is for this reason that in the Committee on Commerce, we worked to 
ensure that the bill was technologically neutral. We should not and we 
do not in this bill pick the winners and the losers. The bill is about 
enabling everyone the same opportunity to receive multichannel access 
to broadcast signals. From here on out, it is up to the marketplace to 
decide who wins and who loses.
  Let me also say that on the Committee on Commerce my colleagues and I 
made a number of other changes to the bill that protect the interest of 
taxpayers here. For example, we designated an interagency board that 
will approve the loans under this program. We also capped the loans to 
80 percent of the amount borrowed, so the guarantee is only up to 80 
percent. We ensure that the American taxpayer's lien would be superior 
to any other lien that might be against the property of a borrower. On 
balance, this is indeed a bill worthy of my colleagues' support. It is 
balanced and fiscally responsible. I urge its adoption.
  Mr. Speaker, I reserve the balance of my time.
  Mr. MARKEY. Mr. Speaker, I yield myself 1 minute.
  Mr. Speaker, this is a bill that has some good parts and some not so 
good parts. It does seek to advance the goal of ensuring that there is 
access to satellite-delivered local TV stations in every community in 
the United States.

                              {time}  1700

  Without question, as it came out of committee, there were provisions 
that would have really hurt other competing companies, such as North 
Point, that have, thank goodness been removed. As well, the loans 
cannot be utilized to go bid at FCC auctions, and there are other 
provisions which ensure that the loans cannot be used for operating, 
advertising, or for promotional expenses. So there are some safeguards 
which have been built in here.
  I think that the bill can be further protected. My hope is that 
between now and the conclusion of the conference committee, that we 
will be able to achieve the goal of ensuring that this bill advances 
solely competitive purposes, and is not used for any other purpose.
  Mr. GOODLATTE. Mr. Speaker, I am pleased to yield 2 minutes to the 
gentleman from North Carolina (Mr. Coble).
  Mr. COBLE. Mr. Speaker, I thank the gentleman for yielding me time.
  Mr. Speaker, as many know, this was an important part of the 
legislation from last session concerning the Satellite Home Viewers 
Act. I believe the citizens in rural areas, particularly those in the 
Sixth District of North Carolina, deserve the same opportunities others 
have to be served by local broadcasters.
  It is important to proliferate local stations serving local areas so 
all can receive their local news, local community service and 
particularly emergency weather updates for that area. To demonstrate 
how important this is, you only have to ask my fellow citizens from 
eastern North Carolina who were victimized by those tragic floods just 
last year. It is my hope that this legislation serves as a catalyst, 
Mr. Speaker, for accomplishing that goal.
  It is my further hope that the Senate will take the bill and enact 
it. If it does not, any conference may be tempted to expand the reach 
of the current legislation.
  I am glad the Committee on the Judiciary was able to assist in moving 
this bill quickly, and I reiterate the interest of the gentleman from 
Illinois (Chairman Hyde) in our participation

[[Page 5600]]

in any such conference, but hope we can move it quickly into law.
  Finally, Mr. Speaker, I think the gentleman from Virginia (Mr. 
Boucher) and the gentleman from Virginia (Mr. Goodlatte) were the lead 
dogs, if you will, on this legislation. They were tireless in their 
efforts, and I commend them for that.
  Mr. STENHOLM. Mr. Speaker, I yield 4 minutes to the gentlewoman from 
North Carolina (Mrs. Clayton).
  Mrs. CLAYTON. Mr. Speaker, I thank the gentleman for yielding me 
time.
  Mr. Speaker, I live in rural America, and I represent a predominantly 
rural district. I also cochair the Congressional Rural Caucus. This is 
an issue that is critical to rural America, and, indeed, critical to 
all Americans.
  It is essential that rural Americans not be treated as second-class 
citizens who are denied access to local television stations for news, 
weather, sports, and emergency information. Indeed, one need not look 
further than my own district in eastern North Carolina to see the 
critical role that local television news play when disasters such as 
hurricane, tornadoes, blizzards, earthquakes, or floods strike.
  Last winter a fast-moving snowstorm with near-blizzard conditions 
left a record snowfall of 23 inches in parts of my district. Last fall, 
three hurricanes and a subsequent 500-year flood left flood waters that 
covered nearly 20,000 square miles of North Carolina, a land mass 
greater than the size of the State of Maryland. It took weeks for the 
flood waters to recede, and disaster relief efforts are still going on 
to date.
  Local news provides vital information on safety procedures, emergency 
shelter, location, and how to obtain assistance. In addition, local 
television broadcasts of crop reports, local news, weather reports, 
public service announcements, and advertisements by local business are 
important to rural development.
  Let me repeat that rural citizens in North Carolina, in fact, rural 
citizens in America, should not be disadvantaged and must have access 
to the same network and local television service at the same affordable 
prices as citizens in urban and suburban areas.
  The Rural Local Broadcast Signal Act established a $1.2 billion loan 
guarantee to help finance satellite companies in unserved and 
underserved rural areas. It is clear that without this financial 
incentive of a loan guarantee program, many rural markets of the 
country would not have access to local television signals via 
satellite.
  The economy of scale in rural areas has to be compensated because the 
private sector will not and cannot provide the expensive initial 
investment needed. A Federal loan guarantee program will enable 
affordable capital to be available to finance satellite systems for the 
delivery of local television signals. I am pleased that the committee 
saw fit to exclude a potentially damaging amendment that would have 
delayed the entire loan program for 90 days pending certain testing. 
Such an amendment would have been unnecessary and harmful.
  I am also pleased that the cooperative lenders such as CoBank and the 
National Rural Utilities Cooperative Finance Corporation are eligible 
to participate in the loan guarantee program under section 4(d) of the 
bill. Their expertise, capacity, capital strength, and experience in 
providing financial assistance to rural utility service borrowers 
should be used and has been valuable in the past.
  Mr. Speaker, I support the establishment of a loan guarantee program, 
and I urge all of our colleagues to support this very necessary 
legislation.
  Mr. TAUZIN. Mr. Speaker, I am pleased to yield 2 minutes to my friend 
and mentor, the gentleman from New York (Mr. Gilman).
  Mr. GILMAN. Mr. Speaker, I thank the gentleman for yielding me time.
  Mr. Speaker, permit me to take this opportunity to thank the 
gentleman from Louisiana (Mr. Tauzin), the distinguished subcommittee 
chairman, and the gentleman from Virginia (Mr. Goodlatte) for bringing 
this measure to the floor at this time and permitting me to speak in 
support of this legislation.
  H.R. 3615, the Rural Local Broadcast Signal Act, was introduced in 
response to the announcement by the major satellite carriers that, 
following enactment of the Satellite Home Viewer Act last fall, 
satellite carriers would be providing only newly authorized local 
network TV broadcast services in the largest markets, rather than the 
more rural areas. These satellite providers have stated it is not 
economically feasible to provide such service to our rural areas. Since 
many rural areas of our Nation are not served by broadcast TV or cable 
service, legislation is necessary to encourage the delivery of local 
network TV service to our rural Americans. This legislation amends the 
Rural Electrification Act of 1936 in order to provide local TV networks 
to rural satellite customers.
  Mr. Speaker, the purpose of this bill is to ensure improved access of 
local TV signals into unserved or underserved rural areas by December 
31, 2006. The bill is languaged to provide local TV signals to rural 
Americans, which will not only benefit consumers, but it can save 
lives.
  Mr. Speaker, I thank the gentleman from Louisiana (Mr. Tauzin) and 
the gentleman from Virginia (Mr. Goodlatte) for introducing this 
important measure and affording me the opportunity to include my 
legislation, H.R. 1817, as a provision of the bill.
  Accordingly, I urge our colleagues to fully support this important 
measure for all the rural communities throughout our Nation.
  Mr. TAUZIN. Mr. Speaker, I yield 5 minutes to the gentleman from 
Virginia (Mr. Boucher), the ``lead dog'' on the Democratic side on this 
bill.
  Mr. BOUCHER. Mr. Speaker, I thank my friend from Massachusetts for 
yielding me time.
  Mr. Speaker, I rise in strong support of this measure in which I am 
pleased to join my colleague, the gentleman from Virginia (Mr. 
Goodlatte), as principal cosponsor. The passage of this legislation is 
urgently needed. It offers the only opportunity for residents of 
medium-sized and small cities and virtually all of rural America to 
benefit from the new service that delivers local television signals to 
homes with satellite dishes.
  Last year we enacted a new law which, for the first time, enabled 
satellite television companies to deliver to satellite dish owners 
local television signals in addition to the national programming that 
these companies have traditionally offered. That was the good news.
  The somewhat less than good news is that those companies have decided 
that they can only make a profit by offering the new local into local 
service in the largest cities. Accordingly, medium-sized and small 
cities and rural portions of the Nation will not be served by the 
commercial companies.
  Of the 211 local television markets in the Nation, at most 67 will 
receive the commercially provided local into local satellite television 
service. The bill that the gentleman from Virginia (Mr. Goodlatte) and 
I have put forward is designed to fill the gap. Our intent is to create 
a means for every person who desires the service to have access to his 
local television stations delivered by satellite. Then, for the first 
time, there will be on a nationwide basis a truly viable competitive 
alternative to cable television. With the addition of the local TV 
service, satellite companies will be able to offer exactly the same 
programs, including local broadcast signals, that cable television has 
traditionally offered.
  For the first time, cable rates will be set through a competitive 
market and will be restrained. For the first time, the residents of 
many rural regions, such as the mountainous portion of Virginia that 
the gentleman from Virginia (Mr. Goodlatte) and I represent, who are 
blocked from the receipt of local TV signals because of mountainous 
terrain, will be able to view with a clear digital signal the local 
stations which are broadcast in their area.
  We will achieve these goals by providing a Federal loan guarantee in 
the amount of $1.25 billion through which a self-sustaining affordable 
service offering local TV signals by satellite can be launched on a 
nationwide basis. By this means, the residents of all 211 local 
television markets in the Nation will soon

[[Page 5601]]

receive the new local into local satellite delivered television 
service.
  I want to commend my friend and colleague from Virginia (Mr. 
Goodlatte) for his leadership, as together we have structured this 
approach and brought the bill to the point of passage in the House 
today. It is a pleasure to work with the gentleman as we advance the 
interests of all rural Americans.
  I also want to thank the chairmen and ranking members of the 
Committee on Commerce and the Committee on Agriculture for their 
excellent cooperation in bringing the measure to the floor. With the 
step that we are taking, we can assure that local news, sports, 
emergency announcements, weather reports, and community service 
programming that contribute to the broad popularity of local television 
broadcasts are available, not just in the largest cities, but in all 
television markets throughout the Nation.
  Mr. Speaker, I am pleased to join with the gentleman from Virginia 
(Mr. Goodlatte) and others who will speak in urging the approval of 
this measure by the House today.


   amendment in the nature of a substitute offered by mr. goodlatte.

  Mr. GOODLATTE. Mr. Speaker, I ask unanimous consent that the 
amendment in the nature of a substitute considered as adopted to H.R. 
3615 under the order of the House of earlier today be the amendment in 
the nature of a substitute that I have now placed at the desk, which 
shall be considered as read.
  The SPEAKER pro tempore (Mr. Hastings of Washington). Is there 
objection to the request of the gentleman from Virginia?
  Mr. STENHOLM. Mr. Speaker, reserving the right to object, I do so for 
purposes of clarifying if the original colloquy that I had a moment ago 
still applies to the amendment in the nature of a substitute that you 
have placed at the desk?
  Mr. GOODLATTE. Mr. Speaker, will the gentleman yield?
  Mr. STENHOLM. I yield to the gentleman from Virginia.
  Mr. GOODLATTE. Mr. Speaker, the gentleman is correct.
  Mr. STENHOLM. Mr. Speaker, I withdraw my reservation of objection.
  The SPEAKER pro tempore. Is there objection to the request of the 
gentleman from Virginia?
  There was no objection.
  The text of the amendment in the nature of a substitute is as 
follows:

    Amendment in the Nature of a Substitute Offered by Mr. Goodlatte

       Strike all after the enacting clause and insert the 
     following:

     SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

       (a) Short Title.--This Act may be cited as the ``Rural 
     Local Broadcast Signal Act''.
       (b) Table of Contents.--The table of contents of this Act 
     is as follows:

Sec. 1. Short title; table of contents.
Sec. 2. Purpose.
Sec. 3. Rural television loan guarantee board.
Sec. 4. Approval of loan guarantees.
Sec. 5. Administration of loan guarantees.
Sec. 6. Prohibition on use of funds for spectrum auctions.
Sec. 7. Prohibition on use of funds by incumbent cable operators.
Sec. 8. Annual audit.
Sec. 9. Exemption from must carry requirements.
Sec. 10. Additional availability of broadcast signals in rural areas.
Sec. 11. Improved cellular service in rural areas.
Sec. 12. Technical amendment.
Sec. 13. Definitions.
Sec. 14. Authorizations of appropriations.
Sec. 15. Sunset.

     SEC. 2. PURPOSE.

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

     SEC. 3. RURAL TELEVISION LOAN GUARANTEE BOARD.

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

     SEC. 4. APPROVAL OF LOAN GUARANTEES.

       (a) Authority To Approve Loan Guarantees.--Subject to the 
     provisions of this section and consistent with the purpose of 
     this Act, the Board may approve loan guarantees under this 
     Act.
       (b) Regulations.--
       (1) Requirements.--The Administrator (as defined in section 
     5 of this Act), under the direction of and for approval by 
     the Board, shall prescribe regulations to implement the 
     provisions of this Act and shall do so not later than 120 
     days after funds authorized to be appropriated under section 
     15 of this Act have been appropriated in a bill signed into 
     law.
       (2) Elements.--The regulations prescribed under paragraph 
     (1) shall--
       (A) set forth the form of any application to be submitted 
     to the Board under this Act;
       (B) set forth time periods for the review and consideration 
     by the Board of applications to be submitted to the Board 
     under this Act, and for any other action to be taken by the 
     Board with respect to such applications;
       (C) provide appropriate safeguards against the evasion of 
     the provisions of this Act;
       (D) set forth the circumstances in which an applicant, 
     together with any affiliate of an applicant, shall be treated 
     as an applicant for a loan guarantee under this Act;
       (E) include requirements that appropriate parties submit to 
     the Board any documents and assurances that are required for 
     the administration of the provisions of this Act; and
       (F) include such other provisions consistent with the 
     purpose of this Act as the Board considers appropriate.
       (3) Construction.--(A) Nothing in this Act shall be 
     construed to prohibit the Board from requiring, to the extent 
     and under circumstances considered appropriate by the Board, 
     that affiliates of an applicant be subject to certain 
     obligations of the applicant as a condition to the approval 
     or maintenance of a loan guarantee under this Act.
       (B) If any provision of this Act or the application of such 
     provision to any person or entity or circumstance is held to 
     be invalid by a court of competent jurisdiction, the 
     remainder of this Act, or the application of such provision 
     to such person or entity or circumstance other than those as 
     to which it is held invalid, shall not be affected thereby.
       (c) Authority Limited by Appropriations Acts.--The Board 
     may approve loan guarantees under this Act only to the extent 
     provided for in advance in appropriations Acts.
       (d) Requirements and Criteria Applicable to Approval.--
       (1) In general.--The Board shall utilize the underwriting 
     criteria developed under subsection (g), and any relevant 
     information provided by the departments and agencies with 
     which the Board consults under section 3, to determine which 
     loans may be eligible for a loan guarantee under this Act.
       (2) Prerequisites.--In addition to meeting the underwriting 
     criteria under paragraph (1), a loan may not be guaranteed 
     under this Act unless--
       (A) the loan is made to finance the acquisition, 
     improvement, enhancement, construction, deployment, launch, 
     or rehabilitation of the means by which local television 
     broadcast signals will be delivered principally to an 
     unserved area or an underserved area (or both);
       (B) the proceeds of the loan will not be used for 
     operating, advertising, or promotion expenses;
       (C) the proposed project, as determined by the National 
     Telecommunications and Information Administration, is not 
     likely to have a substantial adverse impact on competition 
     that outweighs the benefits of improving access to the 
     signals of a local television station in an unserved area or 
     an underserved area (or both), and is commercially viable;

[[Page 5602]]

       (D)(i) the loan (including Other Debt, as defined in 
     subsection (f)(2)(B))--
       (I) is provided by any entity engaged in the business of 
     commercial lending--

       (aa) if the loan is made in accordance with loan-to-one-
     borrower and affiliate transaction restrictions to which the 
     entity is subject under applicable law; or
       (bb) if item (aa) does not apply, the loan is made only to 
     a borrower that is not an affiliate of the entity and only if 
     the amount of the loan and all outstanding loans by that 
     entity to that borrower and any of its affiliates does not 
     exceed 10 percent of the net equity of the entity; or

       (II) is provided by a nonprofit corporation, including the 
     National Rural Utilities Cooperative Finance Corporation, 
     engaged primarily in commercial lending, if the Board 
     determines that such nonprofit corporation has one or more 
     issues of outstanding long-term debt that is rated within the 
     highest 3 rating categories of a nationally recognized 
     statistical rating organization, and, if the Board determines 
     that the making of the loan by such nonprofit corporation 
     will cause a decline in the debt rating mentioned above, the 
     Board at its discretion may disapprove the loan guarantee on 
     this basis;
       (ii)(I) no loan (including Other Debt as defined in 
     subsection (f)(2)(B)) may be made for purposes of this Act by 
     a governmental entity or affiliate thereof, or by the Federal 
     Agricultural Mortgage Corporation, or any institution 
     supervised by the Office of Federal Housing Enterprise 
     Oversight, the Federal Housing Finance Board, or any 
     affiliate of such entities;
       (II) any loan (including Other Debt as defined in 
     subsection (f)(2)(B)) must have terms, in the judgment of the 
     Board, that are consistent in material respects with the 
     terms of similar obligations in the private capital market;
       (III) for purposes of clause (i)(I)(bb), the term ``net 
     equity'' means the value of the total assets of the entity, 
     less the total liabilities of the entity, as recorded under 
     generally accepted accounting principles for the fiscal 
     quarter ended immediately prior to the date on which the 
     subject loan is approved; and
       (E) repayment of the loan is required to be made within a 
     term of the lesser of--
       (i) 25 years from the date of the execution of the loan; or
       (ii) the economically useful life, as determined by the 
     Board or in consultation with persons or entities deemed 
     appropriate by the Board, of the primary assets to be used in 
     the delivery of the signals concerned; and
       (F) the loan meets any additional criteria developed under 
     subsection (g).
       (3) Protection of united states financial interests.--The 
     Board may not approve the guarantee of a loan under this Act 
     unless--
       (A) the Board has been given documentation, assurances, and 
     access to information, persons, and entities necessary, as 
     determined by the Board, to address issues relevant to the 
     review of the loan by the Board for purposes of this Act; and
       (B) the Board makes a determination in writing that--
       (i) to the best of its knowledge upon due inquiry, the 
     assets, facilities, or equipment covered by the loan will be 
     utilized economically and efficiently;
       (ii) the terms, conditions, security, and schedule and 
     amount of repayments of principal and the payment of interest 
     with respect to the loan protect the financial interests of 
     the United States and are reasonable;
       (iii) to the extent possible, the value of collateral 
     provided by an applicant is at least equal to the unpaid 
     balance of the loan amount covered by the loan guarantee (the 
     ``Amount'' for purposes of this clause); and if the value of 
     collateral provided by an applicant is less than the Amount, 
     the additional required collateral is provided by any 
     affiliate of the applicant; and if the combined value of 
     collateral provided by an applicant and any affiliate is not 
     at least equal to the Amount, the collateral from such 
     affiliate represents all of such affiliate's assets;
       (iv) all necessary and required regulatory and other 
     approvals, spectrum rights, and delivery permissions have 
     been received for the loan, the project under the loan, and 
     the Other Debt, if any, under subsection (f)(2)(B);
       (v) the loan would not be available on reasonable terms and 
     conditions without a loan guarantee under this Act; and
       (vi) repayment of the loan can reasonably be expected.
       (e) Considerations.--
       (1) Type of market.--
       (A) Priority considerations.--To the maximum extent 
     practicable, the Board shall give priority in the approval of 
     loan guarantees under this Act in the following order: First, 
     to projects that will serve the greatest number of households 
     in unserved areas and the number of States (including 
     noncontiguous States); and second, to projects that will 
     serve the greatest number of households in underserved areas. 
     In each instance, the Board shall consider the project's 
     estimated cost per household to be served.
       (B) Prohibition.--The Board may not approve a loan 
     guarantee under this Act for a project that is designed 
     primarily to serve 1 or more of the 40 most populated 
     designated market areas (as that term is defined in section 
     122(j) of title 17, United States Code).
       (2) Other considerations.--The Board shall consider other 
     factors, which shall include projects that would--
       (A) offer a separate tier of local broadcast signals;
       (B) provide lower projected costs to consumers of such 
     separate tier; and
       (C) enable the delivery of local broadcast signals 
     consistent with the purpose of this Act by a means reasonably 
     compatible with existing systems or devices predominantly in 
     use.
       (f) Guarantee Limits.--
       (1) Limitation on aggregate value of loans.--The aggregate 
     value of all loans for which loan guarantees are issued under 
     this Act (including the unguaranteed portion of loans issued 
     under paragraph (2)(A)) and Other Debt under paragraph (2)(B) 
     may not exceed $1,250,000,000.
       (2) Guarantee level.--A loan guarantee issued under this 
     Act--
       (A) may not exceed an amount equal to 80 percent of a loan 
     meeting in its entirety the requirements of subsection 
     (d)(2)(A). If only a portion of a loan meets the requirements 
     of that subsection, the Board shall determine that percentage 
     of the loan meeting such requirements (the ``applicable 
     portion'') and may issue a loan guarantee in an amount not 
     exceeding 80 percent of the applicable portion; or
       (B) may, as to a loan meeting in its entirety the 
     requirements of subsection (d)(2)(A), cover the amount of 
     such loan only if that loan is for an amount not exceeding 80 
     percent of the total debt financing for the project, and 
     other debt financing (also meeting in its entirety the 
     requirements of subsection (d)(2)(A)) from the same source 
     for a total amount not less than 20 percent of the total debt 
     financing for the project (``Other Debt'') has been approved.
       (g) Underwriting Criteria.--Within the period provided for 
     under subsection (b)(1), the Board shall, in consultation 
     with the Director of the Office of Management and Budget and 
     an independent public accounting firm, develop underwriting 
     criteria relating to the guarantee of loans that are 
     consistent with the purpose of this Act, including 
     appropriate collateral and cash flow levels for loans 
     guaranteed under this Act, and such other matters as the 
     Board considers appropriate.
       (h) Credit Risk Premiums.--
       (1) Establishment and acceptance.--The Board may establish 
     and approve the acceptance of credit risk premiums with 
     respect to a loan guarantee under this Act in order to cover 
     the cost, as determined under section 504(b)(1) of the 
     Federal Credit Reform Act of 1990, of the loan guarantee. To 
     the extent that appropriations of budget authority are 
     insufficient to cover the cost, as so determined, of a loan 
     guarantee under this Act, credit risk premiums shall be 
     accepted from a non-Federal source under this subsection on 
     behalf of the applicant for the loan guarantee.
       (2) Credit risk premium amount.--
       (A) In general.--The Board shall determine the amount of 
     any credit risk premium to be accepted with respect to a loan 
     guarantee under this Act on the basis of--
       (i) the financial and economic circumstances of the 
     applicant for the loan guarantee, including the amount of 
     collateral offered;
       (ii) the proposed schedule of loan disbursements;
       (iii) the business plans of the applicant for providing 
     service;
       (iv) any financial commitment from a broadcast signal 
     provider; and
       (v) the concurrence of the Director of the Office of 
     Management and Budget as to the amount of the credit risk 
     premium.
       (B) Proportionality.--To the extent that appropriations of 
     budget authority are sufficient to cover the cost, as 
     determined under section 504(b)(1) of the Federal Credit 
     Reform Act of 1990, of loan guarantees under this Act, the 
     credit risk premium with respect to each loan guarantee shall 
     be reduced proportionately.
       (C) Payment of premiums.--Credit risk premiums under this 
     subsection shall be paid to an account (the ``Escrow 
     Account'') established in the Treasury which shall accrue 
     interest and such interest shall be retained by the account, 
     subject to subparagraph (D).
       (D) Deductions from escrow account.--If a default occurs 
     with respect to any loan guaranteed under this Act and the 
     default is not cured in accordance with the terms of the 
     underlying loan or loan guarantee agreement, the 
     Administrator, in accordance with subsections (h) and (i) of 
     section 5 of this Act, shall liquidate, or shall cause to be 
     liquidated, all assets collateralizing such loan as to which 
     it has a lien or security interest. Any shortfall between the 
     proceeds of the liquidation net of costs and expenses 
     relating to the liquidation, and the guarantee amount paid 
     pursuant to this Act shall be deducted from funds in the 
     Escrow Account and credited to the Administrator for payment 
     of such shortfall. At such time as determined under 
     subsection (d)(2)(E) when all loans guaranteed under this Act 
     have been repaid or otherwise satisfied in accordance with 
     this Act and the regulations promulgated hereunder, remaining 
     funds in the Escrow Account, if any, shall be refunded, on a 
     pro rata basis, to applicants whose loans

[[Page 5603]]

     guaranteed under this Act were not in default, or where any 
     default was cured in accordance with the terms of the 
     underlying loan or loan guarantee agreement.
       (i) Judicial Review.--The decision of the Board to approve 
     or disapprove the making of a loan guarantee under this Act 
     shall not be subject to judicial review.

     SEC. 5. ADMINISTRATION OF LOAN GUARANTEES.

       (a) In General.--The Administrator of the Rural Utilities 
     Service (in this Act referred to as the ``Administrator'') 
     shall issue and otherwise administer loan guarantees that 
     have been approved by the Board in accordance with sections 3 
     and 4 of this Act.
       (b) Security for Protection of United States Financial 
     Interests.--
       (1) Terms and conditions.--An applicant shall agree to such 
     terms and conditions as are satisfactory, in the judgment of 
     the Board, to ensure that, as long as any principal or 
     interest is due and payable on a loan guaranteed under this 
     Act, the applicant--
       (A) shall maintain assets, equipment, facilities, and 
     operations on a continuing basis;
       (B) shall not make any discretionary dividend payments that 
     impair its ability to repay obligations guaranteed under this 
     Act;
       (C) shall remain sufficiently capitalized; and
       (D) shall submit to, and cooperate fully with, any audit of 
     the applicant under section 8(a)(2) of this Act.
       (2) Collateral.--
       (A) Existence of adequate collateral.--An applicant shall 
     provide the Board such documentation as is necessary, in the 
     judgment of the Board, to provide satisfactory evidence that 
     appropriate and adequate collateral secures a loan guaranteed 
     under this Act.
       (B) Form of collateral.--Collateral required by 
     subparagraph (A) shall consist solely of assets of the 
     applicant, any affiliate of the applicant, or both (whichever 
     the Board considers appropriate), including primary assets to 
     be used in the delivery of signals for which the loan is 
     guaranteed.
       (C) Review of valuation.--The value of collateral securing 
     a loan guaranteed under this Act may be reviewed by the 
     Board, and may be adjusted downward by the Board if the Board 
     reasonably believes such adjustment is appropriate.
       (3) Lien on interests in assets.--Upon the Board's approval 
     of a loan guarantee under this Act, the Administrator shall 
     have liens on assets securing the loan, which shall be 
     superior to all other liens on such assets, and the value of 
     the assets (based on a determination satisfactory to the 
     Board) subject to the liens shall be at least equal to the 
     unpaid balance of the loan amount covered by the loan 
     guarantee, or that value approved by the Board under section 
     4(d)(3)(B)(iii) of this Act.
       (4) Perfected security interest.--With respect to a loan 
     guaranteed under this Act, the Administrator and the lender 
     shall have a perfected security interest in assets securing 
     the loan that are fully sufficient to protect the financial 
     interests of the United States and the lender.
       (5) Insurance.--In accordance with practices in the private 
     capital market, as determined by the Board, the applicant for 
     a loan guarantee under this Act shall obtain, at its expense, 
     insurance sufficient to protect the financial interests of 
     the United States, as determined by the Board.
       (c) Assignment of Loan Guarantees.--The holder of a loan 
     guarantee under this Act may assign the loan guaranteed under 
     this Act in whole or in part, subject to such requirements as 
     the Board may prescribe.
       (d) Modification.--The Board may approve the modification 
     of any term or condition of a loan guarantee or a loan 
     guaranteed under this Act, including the rate of interest, 
     time of payment of principal or interest, or security 
     requirements only if--
       (1) the modification is consistent with the financial 
     interests of the United States;
       (2) consent has been obtained from the parties to the loan 
     agreement;
       (3) the modification is consistent with the underwriting 
     criteria developed under section 4(g) of this Act;
       (4) the modification does not adversely affect the interest 
     of the Federal Government in the assets or collateral of the 
     applicant;
       (5) the modification does not adversely affect the ability 
     of the applicant to repay the loan; and
       (6) the National Telecommunications and Information 
     Administration has been consulted by the Board regarding the 
     modification.
       (e) Performance Schedules.--
       (1) Performance schedules.--An applicant for a loan 
     guarantee under this Act for a project covered by section 
     4(e)(1) of this Act shall enter into stipulated performance 
     schedules with the Administrator with respect to the signals 
     to be provided through the project.
       (2) Penalty.--The Administrator may assess against and 
     collect from an applicant described in paragraph (1) a 
     penalty not to exceed 3 times the interest due on the 
     guaranteed loan of the applicant under this Act if the 
     applicant fails to meet its stipulated performance schedule 
     under that paragraph.
       (f) Compliance.--The Administrator, in cooperation with the 
     Board and as the regulations of the Board may provide, shall 
     enforce compliance by an applicant, and any other party to a 
     loan guarantee for whose benefit assistance under this Act is 
     intended, with the provisions of this Act, any regulations 
     under this Act, and the terms and conditions of the loan 
     guarantee, including through the submittal of such reports 
     and documents as the Board may require in regulations 
     prescribed by the Board and through regular periodic 
     inspections and audits.
       (g) Commercial Validity.--A loan guarantee under this Act 
     shall be incontestable--
       (1) in the hands of an applicant on whose behalf the loan 
     guarantee is made, unless the applicant engaged in fraud or 
     misrepresentation in securing the loan guarantee; and
       (2) as to any person or entity (or their respective 
     successor in interest) who makes or contracts to make a loan 
     to the applicant for the loan guarantee in reliance thereon, 
     unless such person or entity (or respective successor in 
     interest) engaged in fraud or misrepresentation in making or 
     contracting to make such loan.
       (h) Defaults.--The Board shall prescribe regulations 
     governing defaults on loans guaranteed under this Act, 
     including the administration of the payment of guaranteed 
     amounts upon default.
       (i) Recovery of Payments.--
       (1) In general.--The Administrator shall be entitled to 
     recover from an applicant for a loan guarantee under this Act 
     the amount of any payment made to the holder of the guarantee 
     with respect to the loan.
       (2) Subrogation.--Upon making a payment described in 
     paragraph (1), the Administrator shall be subrogated to all 
     rights of the party to whom the payment is made with respect 
     to the guarantee which was the basis for the payment.
       (3) Disposition of property.--
       (A) Sale or disposal.--The Administrator shall, in an 
     orderly and efficient manner, sell or otherwise dispose of 
     any property or other interests obtained under this Act in a 
     manner that maximizes taxpayer return and is consistent with 
     the financial interests of the United States.
       (B) Maintenance.--The Administrator shall maintain in a 
     cost-effective and reasonable manner any property or other 
     interests pending sale or disposal of such property or other 
     interests under subparagraph (A).
       (j) Action Against Obligor.--
       (1) Authority to bring civil action.--The Administrator may 
     bring a civil action in an appropriate district court of the 
     United States in the name of the United States or of the 
     holder of the obligation in the event of a default on a loan 
     guaranteed under this Act. The holder of a loan guarantee 
     shall make available to the Administrator all records and 
     evidence necessary to prosecute the civil action.
       (2) Fully satisfying obligations owed the united states.--
     The Administrator may accept property in satisfaction of any 
     sums owed the United States as a result of a default on a 
     loan guaranteed under this Act, but only to the extent that 
     any cash accepted by the Administrator is not sufficient to 
     satisfy fully the sums owed as a result of the default.
       (k) Breach of Conditions.--The Administrator shall commence 
     a civil action in a court of appropriate jurisdiction to 
     enjoin any activity which the Board finds is in violation of 
     this Act, the regulations under this Act, or any conditions 
     which were duly agreed to, and to secure any other 
     appropriate relief, including relief against any affiliate of 
     the applicant.
       (l) Attachment.--No attachment or execution may be issued 
     against the Administrator or any property in the control of 
     the Administrator pursuant to this Act before the entry of a 
     final judgment (as to which all rights of appeal have 
     expired) by a Federal, State, or other court of competent 
     jurisdiction against the Administrator in a proceeding for 
     such action.
       (m) Fees.--
       (1) Application fee.--The Board shall charge and collect 
     from an applicant for a loan guarantee under this Act a fee 
     to cover the cost of the Board in making necessary 
     determinations and findings with respect to the loan 
     guarantee application under this Act. The amount of the fee 
     shall be reasonable.
       (2) Loan guarantee origination fee.--The Board shall 
     charge, and the Administrator may collect, a loan guarantee 
     origination fee with respect to the issuance of a loan 
     guarantee under this Act.
       (3) Use of fees collected.--Any fee collected under this 
     subsection shall be used to offset administrative costs under 
     this Act, including costs of the Board and of the 
     Administrator.
       (n) Requirements Relating to Affiliates.--
       (1) Indemnification.--The United States shall be 
     indemnified by any affiliate (acceptable to the Board) of an 
     applicant for a loan guarantee under this Act for any losses 
     that the United States incurs as a result of--
       (A) a judgment against the applicant or any of its 
     affiliates;
       (B) any breach by the applicant or any of its affiliates of 
     their obligations under the loan guarantee agreement;
       (C) any violation of the provisions of this Act, and the 
     regulations prescribed under

[[Page 5604]]

     this Act, by the applicant or any of its affiliates;
       (D) any penalties incurred by the applicant or any of its 
     affiliates for any reason, including violation of a 
     stipulated performance schedule under subsection (e); and
       (E) any other circumstances that the Board considers 
     appropriate.
       (2) Limitation on transfer of loan proceeds.--An applicant 
     for a loan guarantee under this Act may not transfer any part 
     of the proceeds of the loan to an affiliate.
       (o) Effect of Bankruptcy.--(1) Notwithstanding any other 
     provision of law, whenever any person or entity is indebted 
     to the United States as a result of any loan guarantee issued 
     under this Act and such person or entity is insolvent or is a 
     debtor in a case under title 11, United States Code, the 
     debts due to the United States shall be satisfied first.
       (2) A discharge in bankruptcy under title 11, United States 
     Code, shall not release a person or entity from an obligation 
     to the United States in connection with a loan guarantee 
     under this Act.

     SEC. 6. PROHIBITION ON USE OF FUNDS FOR SPECTRUM AUCTIONS.

       Notwithstanding any other provision of this Act, no loan 
     guarantee under this Act may be granted or used to provide 
     funds for the acquisition of licenses for the use of spectrum 
     in any competitive bidding under section 309(j) of the 
     Communications Act of 1934 (47 U.S.C. 309(j)).

     SEC. 7. PROHIBITION ON USE OF FUNDS BY INCUMBENT CABLE 
                   OPERATORS.

       Notwithstanding any other provision of this Act, no loan 
     guarantee under this Act may be granted or used to provide 
     funds for--
       (1) the extension of any cable system to any area or areas 
     for which the cable operator of such cable system has a cable 
     franchise, if such franchise obligates the operator to extend 
     such system to such area or areas; or
       (2) the upgrading or enhancement of the services provided 
     over any cable system, unless such upgrading or enhancement 
     is principally undertaken to extend services to areas outside 
     of the previously existing franchise area of the cable 
     operator.

     SEC. 8. ANNUAL AUDIT.

       (a) Requirement.--The Comptroller General of the United 
     States shall conduct on an annual basis an audit of--
       (1) the administration of the provisions of this Act; and
       (2) the financial position of each applicant who receives a 
     loan guarantee under this Act, including the nature, amount, 
     and purpose of investments made by the applicant.
       (b) Report.--The Comptroller General shall submit to the 
     Congress a report on each audit conducted under subsection 
     (a).

     SEC. 9. EXEMPTION FROM MUST CARRY REQUIREMENTS.

       A facility of a satellite carrier, cable system, or other 
     multichannel video programming distributor that is financed 
     with a loan guaranteed under this Act and that delivers local 
     broadcast signals in a television market pursuant to the 
     provisions of section 338, 614, or 615 of the Communications 
     Act of 1934 (47 U.S.C. 338, 534, or 535) shall not be 
     required to carry in such market a greater number of local 
     broadcast signals than the number of such signals that is 
     carried by the cable system serving the largest number of 
     subscribers in such market.

     SEC. 10. ADDITIONAL AVAILABILITY OF BROADCAST SIGNALS IN 
                   RURAL AREAS.

       (a) Opening of Filing for Additional Translator and Low-
     Power Stations.--The Federal Communications Commission shall, 
     in accordance with its regulations, open a filing period 
     window for the acceptance of applications for television 
     translator stations and low-power television stations in 
     rural areas.
       (b) Deadlines for Notice.--The Commission shall announce 
     the filing period window no less than 90 days prior to the 
     commencement of the window.

     SEC. 11. IMPROVED CELLULAR SERVICE IN RURAL AREAS.

       (a) Reinstatement of Applicants as Tentative Selectees.--
       (1) In General.--Notwithstanding the order of the Federal 
     Communications Commission in the proceeding described in 
     paragraph (3), the Commission shall--
       (A) reinstate each applicant as a tentative selectee under 
     the covered rural service area licensing proceeding; and
       (B) permit each applicant to amend its application, to the 
     extent necessary to update factual information and to comply 
     with the rules of the Commission, at any time before the 
     Commission's final licensing action in the covered rural 
     service area licensing proceeding.
       (2) Exemption from petitions to deny.--For purposes of the 
     amended applications filed pursuant to paragraph (1)(B), the 
     provisions of section 309(d)(1) of the Communications Act of 
     1934 (47 U.S.C. 309(d)(1)) shall not apply.
       (3) Proceeding.--The proceeding described in this paragraph 
     is the proceeding of the Commission In re Applications of 
     Cellwave Telephone Services L.P, Futurewave General Partners 
     L.P., and Great Western Cellular Partners, 7 FCC Rcd No. 19 
     (1992).
       (b) Continuation of License Proceeding; Fee Assessment.--
       (1) Award of licenses.--The Commission shall award licenses 
     under the covered rural service area licensing proceeding 
     within 90 days after the date of the enactment of this Act.
       (2) Service requirements.--The Commission shall provide 
     that, as a condition of an applicant receiving a license 
     pursuant to the covered rural service area licensing 
     proceeding, the applicant shall provide cellular 
     radiotelephone service to subscribers in accordance with 
     sections 22.946 and 22.947 of the Commission's rules (47 CFR 
     22.946, 22.947); except that the time period applicable under 
     section 22.947 of the Commission's rules (or any successor 
     rule) to the applicants identified in subparagraphs (A) and 
     (B) of subsection (d)(1) shall be 3 years rather than 5 years 
     and the waiver authority of the Commission shall apply to 
     such 3-year period.
       (3) Calculation of license fee.--
       (A) Fee required.--The Commission shall establish a fee for 
     each of the licenses under the covered rural service area 
     licensing proceeding. In determining the amount of the fee, 
     the Commission shall consider--
       (i) the average price paid per person served in the 
     Commission's Cellular Unserved Auction (Auction No. 12); and
       (ii) the settlement payments required to be paid by the 
     permittees pursuant to the consent decree set forth in the 
     Commission's order, In re the Tellesis Partners (7 FCC Rcd 
     3168 (1992)), multiplying such payments by two.
       (B) Notice of fee.--Within 30 days after the date an 
     applicant files the amended application permitted by 
     subsection (a)(1)(B), the Commission shall notify each 
     applicant of the fee established for the license associated 
     with its application.
       (4) Payment for licenses.--No later than 18 months after 
     the date that an applicant is granted a license, each 
     applicant shall pay to the Commission the fee established 
     pursuant to paragraph (3) for the license granted to the 
     applicant under paragraph (1).
       (5) Auction authority.--If, after the amendment of an 
     application pursuant to subsection (a)(1)(B), the Commission 
     finds that the applicant is ineligible for grant of a license 
     to provide cellular radiotelephone services for a rural 
     service area or the applicant does not meet the requirements 
     under paragraph (2) of this subsection, the Commission shall 
     grant the license for which the applicant is the tentative 
     selectee (pursuant to subsection (a)(1)(B) by competitive 
     bidding pursuant to section 309(j) of the Communications Act 
     of 1934 (47 U.S.C. 309(j)).
       (c) Prohibition of Transfer.--During the 5-year period that 
     begins on the date that an applicant is granted any license 
     pursuant to subsection (a), the Commission may not authorize 
     the transfer or assignment of that license under section 310 
     of the Communications Act of 1934 (47 U.S.C. 310). Nothing in 
     this Act may be construed to prohibit any applicant granted a 
     license pursuant to subsection (a) from contracting with 
     other licensees to improve cellular telephone service.
       (d) Definitions.--For the purposes of this section, the 
     following definitions shall apply:
       (1) Applicant.--The term ``applicant'' means--
       (A) Great Western Cellular Partners, a California general 
     partnership chosen by the Commission as tentative selectee 
     for RSA #492 on May 4, 1989;
       (B) Monroe Telephone Services L.P., a Delaware limited 
     partnership chosen by the Commission as tentative selectee 
     for RSA #370 on August 24, 1989 (formerly Cellwave Telephone 
     Services L.P.); and
       (C) FutureWave General Partners L.P., a Delaware limited 
     partnership chosen by the Commission as tentative selectee 
     for RSA #615 on May 25, 1990.
       (2) Commission.--The term ``Commission'' means the Federal 
     Communications Commission.
       (3) Covered rural service area licensing proceeding.--The 
     term ``covered rural service area licensing proceeding'' 
     means the proceeding of the Commission for the grant of 
     cellular radiotelephone licenses for rural service areas #492 
     (Minnesota 11), #370 (Florida 11), and #615 (Pennsylvania 4).
       (4) Tentative selectee.--The term ``tentative selectee'' 
     means a party that has been selected by the Commission under 
     a licensing proceeding for grant of a license, but has not 
     yet been granted the license because the Commission has not 
     yet determined whether the party is qualified under the 
     Commission's rules for grant of the license.

     SEC. 12. TECHNICAL AMENDMENT.

       Section 339(c) of the Communications Act of 1934 (47 U.S.C. 
     339(c)) is amended by adding at the end the following new 
     paragraph:
       ``(5) Definition.--Notwithstanding subsection (d)(4), for 
     purposes of paragraphs (2) and (4) of this subsection, the 
     term `satellite carrier' includes a distributor (as defined 
     in section 119(d)(1) of title 17, United States Code), but 
     only if the satellite distributor's relationship with the 
     subscriber includes billing, collection, service activation, 
     and service deactivation.''.

     SEC. 13. DEFINITIONS.

       In this Act:
       (1) Affiliate.--The term ``affiliate''--
       (A) means any person or entity that controls, or is 
     controlled by, or is under common control with, another 
     person or entity; and

[[Page 5605]]

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

     SEC. 14. AUTHORIZATIONS OF APPROPRIATIONS.

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

     SEC. 16. SUNSET.

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

  Mr. GOODLATTE. Mr. Speaker, I yield 1 minute to the gentleman from 
Illinois (Mr. Shimkus).
  Mr. SHIMKUS. Mr. Speaker, I do want to commend my colleague from 
Virginia for this work. A requirement on local broadcasters to obtain a 
license is to operate in the public interest. Emergency broadcasts and 
coverage is an example of their importance.
  The great flood of 1993 is an example of local broadcasters covering 
emergencies, covering the levees, around the clock, notifying the 
public when levees broke so that lives could be saved.
  In this new era of technology, last year we passed the Satellite Home 
Viewers Act to ensure that local broadcasts occur in local areas 
through direct satellite. Dropped on the cutting room floor was an 
assistance needed to assure local into local reaches all Americans. 
Rural America cannot be left behind. I am proud to be a cosponsor, have 
worked for its passage on the committee, and speak in support of the 
passage of this bill.

                              {time}  1715

  Mr. GOODLATTE. Mr. Speaker, I yield 1\1/2\ minutes to the gentleman 
from South Dakota (Mr. Thune).
  Mr. THUNE. Mr. Speaker, I thank the gentleman for yielding time to 
me, and also I want to recognize the gentleman for the great work that 
he did to bring this issue to the floor and for his leadership on the 
issue.
  I am an original cosponsor of the Rural Local Broadcast Signal Act. 
This takes us one step closer to closing the digital divide. Nearly 
55,000 households in my home State of South Dakota receive their 
programming from satellite dishes. Over the last 2 years, I have heard 
from 1,400 of my fellow South Dakotans on this issue.
  At the end of the last session when the loan guarantees were stripped 
from the Satellite Home Viewers Improvement Act, many people were left 
without reliable access to quality local television. For many who live 
in rural areas, satellite service is the only option. Now we have a 
chance to correct that and provide every rural viewer the opportunity 
to receive a clear, reliable signal from his or her local station.
  Like so many of my colleagues, my State is prone to natural 
disasters, tornadoes, hailstorms, blizzards, and flash floods. Local 
broadcasters are civic-minded and provide emergency information for 
emergency situations. South Dakotans rely on those broadcasters for 
important weather-related information as well.
  Local broadcast signals can save lives. While local television may 
not save every life, it often provides the very precious few seconds 
that are necessary to grab our loved ones and take cover. We owe it to 
rural Americans to make sure that they have the same quality access to 
telecommunications as those in urban areas.
  No one wants to watch a network signal with poor quality. With 
today's technological innovations, no one should have to. On behalf of 
the 150 South Dakotans who rely on satellite television, I urge the 
passage of this important legislation and quick consideration in the 
conference.
  Mr. TAUZIN. Mr. Speaker, I am pleased to yield 3 minutes to my 
friend, the gentleman from Oklahoma (Mr. Largent).
  Mr. LARGENT. Mr. Speaker, I thank the gentleman for yielding time to 
me.
  Mr. Speaker, do not be fooled into thinking that this is not a 
controversial issue. This is. For those who are listening to the debate 
that we are having on the floor, it would seem that this thing is going 
to just steamroll through, but do not think there is not controversy 
surrounding this particular issue.
  Let me read a couple of headlines about this particular bill that we 
are working on today. Here is one from the Washington Times, an 
editorial: ``Rural Rip-off.'' This is the bill we are voting on today, 
described as a ``rural rip-off'' in the Washington Times.
  The Wall Street Journal says, ``Rural Utilities Invest Funds in 
Markets Instead of Local Projects, Audit Says.'' These are the people 
who are going to be applying for this $1.25 billion government 
subsidized loan guarantee.
  In an editorial in the USA Today it is referred to as ``The Taxpayer 
Rip-off in Progress.'' That is the bill we are discussing here this 
evening.
  Let me read just a few of the comments in these articles. First of 
all, let me say that this is a program designed to give loan guarantees 
to people who do not need it to fund projects that are not needed.
  We have heard a variety of speakers speak on the floor today and talk 
about, this is to provide local service. Not true. Local into local is 
the term. That is not true. The definition in the bill says that all 
these loans are available, as long as they do not have access to local 
television broadcast signals from not more than one commercial for-
profit multi-channel video provider.
  So if one already gets local into local through the cable service, 
these monies are still available to them, so they can have local into 
local that is providing the local weather, the local crop reports, and 
so forth, and still be eligible to receive this money.
  What this is really about, and Members need to understand this, this 
is very important, what it really is about is providing government 
subsidies to create competition with the private sector. That may be an 
unintended consequence, but that definitely will be a consequence if 
this bill goes through, which I anticipate it will.
  We will be subsidizing businesses with government loan guarantees so 
they can compete against people in the private sector. That should send 
a chill throughout Congress and the rest of the United States, that 
here we have the United States Congress getting ready to vote on a bill 
that provides $1.25 billion of taxpayer loan guarantees to subsidize 
business to go out and compete with the private sector.
  That is a problem. That is a real problem. All who own small 
businesses or own big businesses, how would they like the government 
jumping into their business, subsidizing some competition for them? 
That is not the intention, I do not believe, the Founders of the 
Constitution had. I do not think it is necessarily the intent of the 
authors of this bill, but it will be the unintended consequence of the 
bill.
  I would urge my colleagues to vote no.
  Mr. MARKEY. Mr. Speaker, I yield 2 minutes to the gentlewoman from 
California (Mrs. Capps).

[[Page 5606]]


  Mrs. CAPPS. Mr. Speaker, I thank my colleague for yielding time to 
me.
  Mr. Speaker, I rise in support of this legislation. As an original 
cosponsor of this bill, I know how important it is that everyone have 
access to their local TV stations. Locally-broadcast TV is most 
Americans' primary source of news, weather, and emergency information. 
But in my district and in rural areas across this country, many people 
cannot watch their own local stations. The hills and valleys in Santa 
Barbara and San Luis Obispo Counties preclude thousands of my 
constituents from receiving local TV over the air.
  Some of my constituents do not have affordable access to cable, or 
they want a different choice. Many of them turn to satellite TV, but 
they could not get their local stations over the satellite.
  So last year we passed legislation allowing so-called local into 
local broadcasting. But we knew then what we know now, most markets in 
the country will not be covered. Outside the top 40 media markets, 
local into local broadcasting is not going to happen because there is 
not enough money in it.
  Citizens in places like the Central Coast of California still will 
not have access to their local stations through satellite TV, and local 
broadcasters still will not be able to get their signals to people who 
need them most, the folks in their own communities.
  This is simply unfair to my constituents and to millions of other 
Americans in rural and underserved areas. The loan program that this 
bill sets up will help to bridge this gap, so I urge my colleagues to 
support this critically important bill. Our constituents in rural 
America deserve access to their local stations.
  This bill is fair, this bill is just, it is worthy of our support.
  Mr. MARKEY. Mr. Speaker, I yield 1 minute to the gentleman from 
Wisconsin (Mr. Kind).
  Mr. STENHOLM. Mr. Speaker, I yield 1 additional minute to the 
gentleman from Wisconsin.
  The SPEAKER pro tempore. The gentleman from Wisconsin (Mr. Kind) is 
recognized for 2 minutes.
  Mr. KIND. Mr. Speaker, I thank the gentlemen for yielding time to me.
  Mr. Speaker, I rise today as a strong supporter of H.R. 3615. I 
commend my colleagues on the compromise that they reached and worked 
out in this legislation, especially the two gentlemen from Virginia, 
the respective chairs and ranking members of the committees.
  This legislation is vitally important for my constituents because it 
is vitally important to rural America. My congressional district is 
predominantly rural, with a population in the largest city of about 
55,000 people.
  Western Wisconsin has numerous small towns, villages, and individual 
farms nestled in the valleys of its rolling hills and bluffs. Due to 
poor reception with normal antennas, many constituents purchase 
satellite dishes for television reception. Unfortunately, these local 
satellite dishes do not provide local television coverage.
  Farmers in rural areas rely on their local news to provide weather 
forecasts, parents rely on local news to alert them to school closings, 
every constituent relies on local news to warn them of impending 
weather emergencies. In my district, access to local news through 
satellite television is not a luxury, it is oftentimes a matter of life 
and death.
  Passage of the Home Satellite Viewers Act last year was a big step 
towards ensuring local access for my constituents who rely on satellite 
dishes. Unfortunately, it was incomplete. H.R. 3615 creates an 80 
percent loan guaranty program that will help satellite or other 
technology companies build the infrastructure to guarantee local access 
to rural areas.
  My colleagues in urban communities are already seeing local access 
because it is cost-effective to provide it in those areas. It is not, 
however, cost-effective in rural America. That is why this legislation 
here today is vitally important to the people I represent.
  I urge passage of H.R. 3615.
  Mr. TAUZIN. Mr. Speaker, I am pleased to yield 2 minutes to the 
gentlewoman from Wyoming (Mrs. Cubin).
  Mrs. CUBIN. Mr. Speaker, I thank the gentleman for yielding time to 
me.
  Mr. Speaker, as an original cosponsor of the loan guarantee program, 
I am particularly pleased with the bill's fiscally responsible plan 
that will ensure that all consumers, specifically those in medium and 
small markets, will have access to local broadcast signals. The only 
cities that will enjoy local network broadcasting over their satellite 
systems under the current system will be those with millions of 
television households.
  As we all know, the largest TV markets are currently enjoying local 
into local service over their satellite systems because of the hard 
work of the Committee on Commerce in passing the Satellite Home Viewers 
Act. The legislation before us today allows Congress to finish the job 
by providing that same service to rural Americans.
  Wyoming is a perfect example of why we need to pass this legislation. 
The two largest TV markets in Wyoming are Cheyenne and Casper. They 
rank number 196 and 199, respectively. Even under the most optimistic 
local into local plans, Wyoming television viewers would probably never 
receive local into local service without the loan guarantee provision 
that is included in this bill.
  I can only say that in lieu of mandating that satellite and cable 
providers serve rural areas, this is our only option. I am committed to 
moving this piece of legislation so that rural television customers can 
enjoy the same local television programming as our urban friends.
  Mr. MARKEY. Mr. Speaker, I yield myself 2 minutes.
  Mr. Speaker, I do believe that this bill, in its present form, has 
yet to reach its pluperfect form of acceptability. However, I think 
that for the time being, as it moves through this floor consideration, 
that it perhaps does merit the support of the Members.
  However, just so that the Members can understand, this bill does not 
require some of the largest corporations in America to actually first 
have gone into the financial marketplace and established that they 
cannot obtain these loans from a commercial financial institution. 
Instead, what it does is it assumes that they cannot receive them.
  One of the things that we I think should think about before we 
finally return from a conference with the Senate is whether or not we 
just might want to ensure that some of these huge corporations, if they 
can find the financing on their own, should not be able to avail 
themselves of publicly guaranteed funding, even if it would be at 
better interest rates than they could get in the free market.
  I think that is something that we are going to have to consider, 
because these are some of the most well known corporations in America 
that we are putting this bill through to guarantee that they are going 
to be subsidized. In other words, we are not taking care of small 
farmers here, we are talking here about large multinationals.
  That is something that I think at the end of the day we can find a 
resolution for; that we do not, in other words, reenact mistakes in the 
past where we wind up subsidizing those that do not need it and, 
unfortunately, in other bills that pass through this body, we wind up 
not giving any kind of help to those that are most in need in our 
country.
  Hopefully, as the process evolves and as we seek to perfect this 
legislation through the conference committee, we will be able to 
achieve those ends.
  Mr. Speaker, I reserve the balance of my time.
  Mr. TAUZIN. Mr. Speaker, I am pleased to yield 3 minutes to the 
gentleman from California (Mr. Cox).
  Mr. MARKEY. Mr. Speaker, I yield 1 additional minute to the gentleman 
from California.
  The SPEAKER pro tempore (Mr. Hastings of Washington). The gentleman 
from California (Mr. Cox) is recognized for 4 minutes.
  Mr. COX. Mr. Speaker, I thank both of my colleagues for yielding time 
to me.
  Mr. Speaker, I share the goals of the sponsors of this legislation. 
The fundamental problem is simple: There are,

[[Page 5607]]

according to the Congressional Budget Office, 3 million people in 
America who do not get over the air free television and who do not get 
cable, so they cannot get their local TV, 3 million people.

                              {time}  1730

  Now, until 1999, Congress made it illegal for satellite TV providers 
to put local stations into the homes of those people. We fixed that 
with SHVA, with the Satellite Home Viewer Act, a short while ago; but 
there remains a catch. In order to deliver even one local station into 
a market, the satellite provider has to deliver all of the locally 
originated stations.
  Now naturally, the satellite providers trying to make money are going 
to start with the big markets like Los Angeles and New York, and in my 
TV market of southern California, where Los Angeles dominates, there 
are so many locally originated TV stations, scores of them, that it 
fills up all the satellite capacity.
  What we have essentially said, by way of Federal regulation, is that 
it is more important for people who live in big TV markets, in big 
cities, to get all of the locally-originated TV stations, even if they 
do not have any local content by the way, than it is for people who 
live in rural America to get just one. We are doing nothing about that 
unfair mandate in this bill.
  Now, I want to draw the attention of my colleagues to the fact that 
the procedure that we are using to pass this bill today does not permit 
any amendments. In the Committee on Commerce, where we worked very hard 
on this issue, I offered an amendment that passed in subcommittee that 
would have addressed the very reason that rural America is not getting 
service from satellite TV today. We passed that amendment in 
subcommittee. We lost it in full committee. I would like to have 
brought it to the floor and directly address the problem that we are 
facing in America today, and that is not enough local TV for this group 
of 3 million people.
  But instead of lifting that Federal mandate, which the satellite 
providers tell us would permit them to get 80 million more people, 
instead of doing that we are going to create a brand new Federal 
program. We are going to take one of the oldest, stodgiest, failing 
bureaucracies that we have in Washington, the former Rural 
Electrification Administration, which is on a covert mission now that 
we will not recognize it to change its name to the Rural Utilities 
Service, and get a new lease on life, we are going to give them a 
billion dollars to go help these 3 million people. We are going to put 
them in the business of trying to compete with for-profit satellite TV 
companies, and one of the two biggest in America still is not making 
money.
  The Congressional Budget Office tells us that the Rural Utilities 
Service is writing off billions of dollars in their existing loan 
portfolio left and right, at taxpayer expense, and that about 30 to 40 
percent of the loans that are going to get made under this program are 
likely to be written off. So one can look at the cost of this program 
right up front is about $400 million.
  The Rural Utilities Service, which we are putting in charge of this, 
does not know anything about which technology, which TV technology, to 
invest in. They may know something about agriculture. They are part of 
the Department of Agriculture. But they certainly do not know anything 
about which technology to bet on.
  The loans that we are going to be providing have a term of 25 years. 
Does anybody in this Chamber understand what the digital information 
marketplace is going to look like 25 years from now? Would someone want 
to make a competitive bet to go into this market in competition with 
the Federal Government, with the Department of Agriculture, on their 
side? That is what we are doing in this legislation.
  It is an extremely unlikely assumption that the Federal Government is 
going to make money in the satellite TV business, but one thing we know 
for sure nobody who lives in a rural area is going to get anything but 
pay TV under this proposal. Free, over-the-air TV, which the Government 
usually subsidizes, is not helped by this proposal.
  I urge my colleagues to take a hard look at this, to ask why it is 
that it is being rushed through here without any opportunity to amend 
it; why we are giving a 70-year-old bureaucracy so much power, and I 
ask my colleagues to vote it down.
  Mr. STENHOLM. Mr. Speaker, I yield 2 minutes to the gentlewoman from 
Missouri (Mrs. Emerson).
  Mrs. EMERSON. Mr. Speaker, I just want to take a few minutes to thank 
the gentleman from Virginia (Mr. Goodlatte) and the gentleman from 
Virginia (Mr. Boucher) and the chairpeople of the respective committees 
for the great work that they have done. I have heard what the gentleman 
from California (Mr. Cox) has said and the gentleman from Oklahoma 
about the fact that this might not be the best means by which to give 
people who have no access to any kind of signal at all the opportunity 
to find out if they have emergency flooding, whether a tornado is 
coming, whether like where I live an earthquake is perhaps going to 
happen. I just cannot tell the folks in my district, which is very, 
very rural and very remote in some areas, that it is not fair that 
people who live in big cities can get access to their local news; they 
can get it, but you cannot have it because nobody wants to come and 
give it to you.
  I do not know how to answer the thousands of questions that I have 
gotten about this without giving them the opportunity to have their 
local news provided by satellite, because they do not have any other 
way to get it, Mr. Speaker. So I would just ask my colleagues who come 
from more metropolitan areas to try to understand what it is like for 
those of us who represent people who not only do not have access to 
satellite and/or cable, certainly cannot get any local news because 
there are not any local news stations within 200 or 300 miles, but a 
lot of these people do not even have running water in their homes. They 
deserve to have a break and they deserve to be on a level playing field 
with all of our folks in the cities, and I am just very happy that we 
are going to pass today, I hope, a bill to give all Americans an equal 
shake.
  The SPEAKER pro tempore (Mr. Hastings of Washington). The Chair would 
remind Members that the gentleman from Virginia (Mr. Goodlatte) has 
2\1/2\ minutes remaining, the gentleman from Texas (Mr. Stenholm) has 
6\1/2\ minutes remaining, the gentleman from Louisiana (Mr. Tauzin) has 
3 minutes remaining, and the gentleman from Massachusetts (Mr. Markey) 
has 4 minutes remaining.
  Mr. STENHOLM. Mr. Speaker, might I inquire what would be the order of 
closing.
  The SPEAKER pro tempore. The order of close would be the gentleman 
from Massachusetts (Mr. Markey), the gentleman from Louisiana (Mr. 
Tauzin), the gentleman from Texas (Mr. Stenholm), the gentleman from 
Virginia (Mr. Goodlatte).
  Mr. GOODLATTE. Mr. Speaker, I yield 1 minute to the gentleman from 
Kansas (Mr. Moran).
  Mr. MORAN of Kansas. Mr. Speaker, I commend the chairmen of a number 
of committees that have had jurisdiction over this issue. I co-chair 
with the gentleman from Louisiana (Mr. Tauzin) a task force on rural 
technology and have taken a long interest and a strongly held belief 
that if rural America is going to survive, it is going to be because we 
have equal access to technology and telecommunications.
  One of the issues that has impacted the constituents of Kansas 
greatly is this issue of whether or not they can receive local 
programming, local-to-local programming, on their satellite networks. A 
typical constituent letter: We live in Madison. We are unable to 
receive network programming, ABC, CBS, NBC or Fox, with a rooftop 
antenna that would be suitable to watch. For 20 years we have received 
our programming through a satellite dish. We now get network coverage 
from cities like Denver, Chicago, Dallas, and New York; but here is the 
problem: We cannot even qualify to access local broadcasting because we 
are in a designated marketing area that is too close to have local 
television.

[[Page 5608]]

  It matters to Kansans as a matter of public safety. Weather is 
important to us and agriculture, and I urge the passage of this bill 
and appreciate the consideration that our committees have given to this 
topic.
  Mr. MARKEY. Mr. Speaker, I yield myself such time as I may consume.
  Mr. Speaker, this satellite revolution is something that is changing 
the very face of the video marketplace in the United States. Back in 
1992 when we passed the programming access provision, the gentleman 
from Louisiana (Mr. Tauzin) and I and others were out here on the floor 
arguing that if we passed that that we would create a revolution, 
create an 18-inch dish that one could buy and put out between the 
petunias and bring down hundreds of television stations; and through 
the years now we have seen this revolution change how suburban and 
urban America relate to their cable companies.
  This legislation is directed towards the last remaining pocket of 
resistance, that is, rural America. It is meant to remedy a problem 
that we think that we dealt with last year when we made it possible for 
urban and suburban television stations to beam up their local TV 
stations and then beam them right back down into the same marketplace. 
That is more difficult in rural America.
  It is wise for us to look at this digital divide to make sure that 
rural America is taken care of. At the same time, it is also important 
for us to make sure that we do not subsidize that which would 
ultimately happen anyway in the private marketplace, and that is a very 
delicate, very thin line for us to be walking. I support this 
legislation at this time, but I hope as we move it further through the 
process that we have the willingness to be open-minded in terms of 
ensuring that we build in the protections, that we do not subsidize 
those that do not need subsidization, that we do not help those to 
compete in the private market that could compete in the private market 
on their own.
  That said, it is important for rural America not to be left out. An 
aye vote on this legislation at this time is, in fact, something that I 
recommend.
  Mr. TAUZIN. Mr. Speaker, I yield myself such time as I may consume.
  Mr. Speaker, the reason why the gentleman from Massachusetts (Mr. 
Markey) and I and so many others came to the floor in 1992 to try to 
create the capacity of direct broadcast satellite to bring television 
programming to America was because at the time we had just gotten 
through deregulating the cable companies. We in Congress had taken away 
the power of local franchising authorities to regulate the monopoly 
cable company. We thought it was pretty important if we were going to 
be responsible for taking away the power of local governments to 
regulate the monopoly cable company that we ought to make sure 
consumers in America had a competitive choice. That is what it was all 
about.
  In 1992, we had to fight our way over a presidential veto to 
accomplish that goal, but we accomplished it. We created the capacity 
of television satellites to deliver satellite programming in 
competition with cable, but we left one thing undone, and that was the 
capacity of those satellites to include the local network programming 
in the package.
  So guess what? Satellites were born; direct broadcast satellite came 
into being. But it was an imperfect competitor. So last year we tried 
to perfect that 1992 legislation by giving the satellites the right to 
carry the local network programming in the package; in short, to give 
Americans a real choice.
  Why? Because we had taken away the authority to regulate the 
monopoly. Well, guess what? In March of last year, all the authority to 
regulate from Washington monopoly cable ended. We allowed that to 
happen, but across America, outside of the 70 major markets that will 
be served by this new legislation last year, Americans will either have 
no multichannel delivery or will be afflicted with a single channel 
delivery system that is now unregulated.
  We created, through this process of legislation, the possibility that 
many Americans will have only one choice for television programming. 
Today we cure that. Today we make sure that here in Washington we 
provide the loan guarantees, not the loans. We are not giving anybody a 
billion dollars. We are providing government-backed guarantees to make 
sure that the rest of America, in addition to the 70 major markets, the 
rest of America will have more than one choice.
  Now that is the way we ought to behave. If we are going to take away 
power to regulate monopolies, we ought to always ensure that consumers 
have real choice because then consumers can regulate the companies by 
choosing which they want to reward with their money and which they want 
to punish by taking their business away.
  With two providers in the marketplace, Americans will finally be 
protected. They will have choice and with choice will come fair prices. 
With choice will come fair packaging of products. With choice will come 
consumer regulation of the marketplace. I hope we pass this good bill.
  Mr. STENHOLM. Mr. Speaker, I yield myself the remainder of my time.
  The SPEAKER pro tempore. The gentleman is recognized for 6\1/2\ 
minutes.
  Mr. STENHOLM. Mr. Speaker, I rise again in support of the bill and 
associate myself with the remarks of the gentleman from Louisiana (Mr. 
Tauzin) regarding the intent and want to use this time to perhaps 
clarify a few points that have been made, I believe, erroneously 
through no intent.

                              {time}  1745

  There has been a lot of quoting of newspaper articles and various 
interpretations of an OIG report that wrongfully implied that electric 
cooperatives were holding $11 billion in a portfolio consisting of 
financial instruments which was interpreted to mean stocks, bonds, and 
mutual funds.
  There has also been an implying that the rural utility service has 
not been a good steward of taxpayer dollars. If my colleagues will 
check the record, they will find that the telecommunications program or 
the rural utility service has never incurred a default regarding loss 
of taxpayer funding. The electric distribution and water programs have 
incurred write-offs of less than 1 percent over their entire history of 
operation.
  Let me just quickly talk about this $11 billion in cash or assets 
that supposedly could be redirected and financed, in this case, 
telecommunications. $2.5 billion of that is patronage capital. That is 
monies owned by the members of the cooperatives that are invested in 
the distribution and transmission lines that provide electricity and 
telephone service.
  $795 million are capital term certificates which form a pool of funds 
for long-term loans for cooperative lending. $2.3 billion is in 
accounts receivable which are bills issued by cooperatives that are not 
yet paid by customers. $2 billion of this $11 billion is in operating 
capital. It is deemed a minimum prudent reserve level by utility 
accounting standards held by the distribution utilities. $2.8 billion 
of this $11 billion alleged dollars is in operating capital that is 
deemed a prudent reserve held by the power supply cooperatives.
  These are just some of the investments that rural electrics and rural 
telephone cooperatives have today. What are they doing with it? Nine 
hundred and thirty electric cooperatives have invested $75 billion for 
32,254 megawatts of generating capacity and 2,281,351 miles of line, 
which accounts for approximately half of the distribution lines in the 
United States.
  I think it is grossly unfair of those who have been misinterpreting 
an OIG report for purposes of this particular bill. This bill is good 
in its intent. The rural utility service will continue to prudently 
manage taxpayer dollars, and the rural communities will be benefited, 
as has already been stated by this legislation.
  Mr. Speaker, I yield back the balance of my time.
  Mr. GOODLATTE. Mr. Speaker, I yield myself the balance of the time.
  Mr. Speaker, in addition to all of those I thanked earlier, and there 
are just too many to recite everyone, I

[[Page 5609]]

want to also recognize the gentlewoman from North Carolina (Mrs. 
Clayton), the ranking member of my subcommittee; as well as the 
gentleman from Massachusetts (Mr. Markey); and the gentleman from 
Michigan (Mr. Dingell), from the Committee on Commerce, for their 
assistance in helping get this legislation to this point.
  But what I really want to do is thank the American people, because 
they are the ones who have driven this legislation more than anyone 
else. Many Members of Congress have received more mail, more phone 
calls, more e-mails on this issue than any other legislative issue in 
the time that they have served in Congress.
  The reason is very simple. Look at the map. The red and yellow dots, 
they are going to get taken care of. The rest of the United States is 
not. Tulsa, Oklahoma is not going to get a local into local service 
without this legislation; Lexington, Kentucky; Roanoke and Lynchburg, 
Virginia, my communities in my district; Austin, Texas; Richmond, 
Virginia; Knoxville, Tennessee; Honolulu, Hawaii; Des Moines, Iowa; 
Green Bay, Wisconsin; Omaha, Nebraska; Spokane; Shreveport, Louisiana; 
New Orleans, Louisiana; Rochester; Tucson; Springfield, Missouri; 
Springfield, Massachusetts. The list goes on and on.
  More than 160 television markets, more than 30 million households, 
nearly 75 million Americans, more than 1,000 television stations in 
those markets will not be served without the passage of this 
legislation. I urge my colleagues to join me in passing this bill.
  Mr. BEREUTER. Mr. Speaker, this Member rises today in strong support 
of H.R. 3615, the Rural Local Broadcast Signal Act. This Member is 
pleased to be a co-sponsor of this important legislation, which will 
ensure improved access to local television signals in unserved or 
under-served rural areas.
  Many rural families either cannot receive their local broadcast 
signals over the air, or are not offered cable service. It is important 
that we address this problem. Particularly in rural areas, local 
television broadcasts may be one of the few sources of emergency 
warnings and local news. In addition, local television provides 
weather, sports and special interest programming. Rural Americans, like 
their urban counterparts, need access to this important information.
  Last year, the House passed the Satellite Home Viewer Improvement 
Act, which was ultimately signed into law. Satellite companies are now 
allowed to offer local network television signals to their subscribers. 
As a result of this bill, it is estimated that 70 percent of American 
households will eventually receive local broadcast signals. The 
remaining 30 percent of households, however, are found in sparsely 
populated areas, which will likely not be served under existing 
conditions. This legislation will ensure that these unserved or under-
served areas are able to receive access to local television signals.
  This bill authorizes the Rural Utilities Service (RUS) to provide 
loan guarantees to organizations for building or improving satellite, 
cable television and multi-channel video distribution infrastructure in 
under-served areas. The RUS will guarantee up to $1.25 billion in loans 
to multi-channel video service providers, including direct broadcast 
satellite licensees. Under the RUS, up to 80 percent of a private loan 
may be guaranteed and loans will be payable in full within 25 years or 
the useful life of the assets purchased. This bill also provides 
standards to ensure that the loans will be promptly repaid and that the 
borrower has adequate collateral and insurance to protect the interests 
of the Federal government. Projects providing service to the most 
under-served market areas will be given priority for these loans.
  In closing, this Member encourages his colleagues to support H.R. 
3615. This bill ensures that all Americans, including those in rural 
areas, receive reliable access to their local broadcast stations.
  Mr. LaFALCE. Mr. Speaker, today the House takes up a bill that, once 
again, handpicks a specific industry in our economy, the satellite 
television industry, to receive government assistance in the form of 
loan guarantees. While the bill before us today represents an 
improvement over the bill included in last year's Satellite Home Viewer 
Improvement Act conference report, and largely reflects the bill 
reported out by the Senate Banking Committee, and enacted by the full 
Senate unanimously, I rise today to express strong concerns with the 
process by which H.R. 3615 was brought to the House floor.
  Last summer, I rose before this chamber, and was joined by the 
Chairman of the Banking Committee, to oppose another government give-
away in the form of loan guarantees to the steel, oil, and gas 
industries. I opposed that bill then because of its substantive flaws, 
and because taxpayers were being placed at undue financial risk. I also 
opposed the steel, oil, and gas loan guarantee program because this 
House, in an open circumvention of its standing rules, brought the bill 
to the floor without having first given the committees of jurisdiction 
the right to review the legislation and to deliberate it on its merits. 
The advantage of having committees of Congress examine legislation with 
vast implications for our economy, the Federal government, and 
taxpayers is that it prevents us from enacting bad laws that help an 
industry in the short-term (sometimes unwisely) but ultimately harm the 
taxpayers in the long-run, who end up having to bear the costs of 
defaulted loans and unsound ventures.
  Mr. Speaker, we cannot, and must not, allow this House to flagrantly 
circumvent its own rules at the expense of the taxpayers.
  Rule X, Clause 1(d)(5) of the Rules of the House of Representatives 
stipulates that all bills, resolutions, and other matters related to 
``Financial aid to commerce and industry (other than transportation)'' 
are under the jurisdiction of the Committee on Banking and Financial 
Services. On November 18, 1999, the Majority Leader of this House 
assured the gentleman from Virginia, Mr. Boucher, the chief Democratic 
sponsor of this measure, on the House floor that ``It is my hope that 
the relevant committees of jurisdiction will engage in a full debate 
and discussion of the merits of this loan guarantee package and move 
appropriate legislation forward expeditiously.'' I regret to mention 
that H.R. 3615, which provides financial aid in the form of loan 
guarantees to satellite companies, was not referred to a very relevant 
committee of jurisdiction, the Banking Committee.
  When H.R. 3615 was introduced on February 10th, 2000, its proponent 
argued successfully that the loan guarantee program being proposed fell 
strictly within the Rural Utilities Service of the U.S. Department of 
Agriculture and that, therefore, the bill should not be referred to the 
Banking Committee. While this is a technical and spurious argument, the 
bottom line is that the Congress is acting on legislation to provide 
financial aid to the satellite TV industry and the bill should have 
therefore been referred to the Committee with clear jurisdiction over 
these matters--the Banking Committee. I should remind my colleagues 
that it was the Banking Committee that historically has enacted 
successful, and strong loan guarantee programs that have been 
profitable to the U.S. government--such as those for the Chrysler 
Corporation, the City of New York, and the Lockheed Corporation.
  Moreover, I should note that the Commerce Committee, unlike the 
Agriculture Committee, added a Board to the legislation in an effort to 
ensure the program's accountability to the taxpayers. That Board 
includes the Secretary of the Treasury as a member. For those who 
mistakenly questioned the need to refer this bill to the Banking 
Committee because it was narrowly tailored for the USDA's Rural 
Utilities Service, the inclusion of the Secretary of the Treasury on 
the Board is reason enough for referral to the Banking Committee.
  Mr. Speaker, the other chamber reported out a bill that was conceived 
in their Banking Committee. But in a truly ironic twist, and despite 
action by the House Agriculture and Commerce Committees on this bill, 
the bill we are considering today, with certain modifications made by 
the Commerce Committee on telecommunications matters strictly within 
their jurisdiction, is by-and-large the same product approved by the 
other chamber. While I am encouraged by this development, only because 
the substance of the Senate bill is an improvement over the originally 
introduced version of H.R. 3615, this House would have been better 
served by the advice, expertise, and input of its own Banking 
Committee.
  Mr. Speaker, none of us disagree with the intent of this 
legislation--to make local TV signals available to rural areas via 
satellite. In principle, I strongly support the notion of bringing 
rural households the same information and access to telecommunications 
that urban residents currently enjoy. However, the Office of Management 
and Budget, which sets out requirements for Federal credit programs, 
continues to have specific concerns with certain provisions of both 
H.R. 3615 and S. 2097. Mr. Speaker, in order to protect the best 
interests of the taxpayers, and to provide important and meaningful 
input in the remainder of the process, I strongly urge inclusion of 
Members of the House Banking Committee on the conference committee so 
that our remaining concerns can be addressed.

[[Page 5610]]


  Mr. MARKEY. Mr. Speaker, I rise in support of the bill. Mr. Speaker, 
the bill before us is an amalgamation of several provisions from the 
introduced bill, the bill reported by the Agriculture Committee and 
that of the Commerce Committee.
  The bill includes a number of provisions that make eminent sense, 
such as prohibiting use of loans for operating, advertising or 
promotional expenses. Loans cannot be utilized to go bid at FCC 
auctions. Incumbent cable operators cannot obtain loans within their 
existing franchise areas. The bill also stipulates that the government 
guarantee may not exceed 80 percent of the loan amount. The bill on the 
floor today also does not contain language that would have disrupted 
plans for a promising new wireless technology pioneered by Northpoint 
technology. I think this deletion is a wise decision, reflects the 
desire of Congress that the FCC proceed consistent with provisions of 
last Fall's Satellite Home Viewer Act, and reflects as well the desire 
of Congress to promote ever more competition in our telecommunications 
marketplace provided that no harmful interference is caused to existing 
licenses.
  Mr. Speaker, I rise in support of the bill despite some lingering 
concerns about this loan guarantee program. I support competition and 
increased consumer choice in telecommunications everywhere in America.
  The bill before us proposes to establish a loan guarantee program, 
based upon the historic initiatives to provide rural America with 
electricity and telephone service, in order to provide subscription 
local-to-local television service. I continue to have reservations that 
providing local-to-local service is something that warrants a loan 
guarantee program of the magnitude proposed in the bill.
  I also believe the bill ought to have provisions that require large, 
financially healthy, profitable companies to go to the commercial 
capital markets first to try to obtain a loan without a government 
guarantee before coming hat-in-hand to the government seeking a 
taxpayer-backed subsidy.
  Promoting competition to cable is a laudable goal for 
telecommunications policy. Subsidizing competition to cable is 
something else altogether, especially when you consider that we have 
spent years trying to get subsidies out of our telecommunications 
markets. My hope would be that in conference with the Senate that we 
can further fine tune this bill and make it more market-oriented and 
competition-based.
  The SPEAKER pro tempore (Mr. Hastings of Washington). All time for 
debate has expired.
  Pursuant to the order of the House of today, the previous question is 
ordered on the bill, as amended.
  The question is on engrossment and third reading of the bill.
  The bill was ordered to be engrossed and read a third time, and was 
read the third time.
  The SPEAKER pro tempore. The question is on the passage of the bill.
  The question was taken; and the Speaker pro tempore announced that 
the ayes appeared to have it.
  Mr. COX. Mr. Speaker, I object to the vote on the ground that a 
quorum is not present and make the point of order that a quorum is not 
present.
  The SPEAKER pro tempore. Evidently a quorum is not present.
  The Sergeant at Arms will notify absent Members.
  The vote was taken by electronic device, and there were--yeas 375, 
nays 37, not voting 22, as follows:

                             [Roll No. 128]

                               YEAS--375

     Abercrombie
     Ackerman
     Aderholt
     Allen
     Andrews
     Baca
     Bachus
     Baird
     Baldacci
     Baldwin
     Ballenger
     Barcia
     Barr
     Barrett (NE)
     Barrett (WI)
     Bartlett
     Barton
     Bass
     Bateman
     Becerra
     Bentsen
     Bereuter
     Berkley
     Berman
     Berry
     Biggert
     Bilbray
     Bilirakis
     Bishop
     Blagojevich
     Blumenauer
     Blunt
     Boehlert
     Boehner
     Bonilla
     Bonior
     Bono
     Boswell
     Boucher
     Boyd
     Brady (PA)
     Brady (TX)
     Brown (FL)
     Brown (OH)
     Bryant
     Burr
     Burton
     Buyer
     Calvert
     Camp
     Campbell
     Canady
     Cannon
     Capps
     Cardin
     Carson
     Castle
     Chambliss
     Clayton
     Clement
     Clyburn
     Coble
     Combest
     Condit
     Conyers
     Costello
     Coyne
     Cramer
     Crane
     Crowley
     Cubin
     Cummings
     Cunningham
     Danner
     Davis (FL)
     Davis (IL)
     Davis (VA)
     Deal
     DeFazio
     DeGette
     Delahunt
     DeLauro
     Deutsch
     Diaz-Balart
     Dickey
     Dicks
     Dingell
     Dixon
     Doggett
     Dooley
     Dreier
     Dunn
     Edwards
     Ehrlich
     Emerson
     Engel
     English
     Eshoo
     Etheridge
     Evans
     Everett
     Ewing
     Farr
     Fattah
     Filner
     Fletcher
     Foley
     Forbes
     Ford
     Fowler
     Franks (NJ)
     Frost
     Gejdenson
     Gekas
     Gephardt
     Gibbons
     Gilchrest
     Gillmor
     Gilman
     Gonzalez
     Goode
     Goodlatte
     Goodling
     Gordon
     Goss
     Graham
     Granger
     Green (TX)
     Green (WI)
     Greenwood
     Gutierrez
     Gutknecht
     Hall (OH)
     Hall (TX)
     Hansen
     Hastings (FL)
     Hastings (WA)
     Hayes
     Hayworth
     Hefley
     Herger
     Hill (IN)
     Hill (MT)
     Hilleary
     Hilliard
     Hinchey
     Hinojosa
     Hobson
     Hoeffel
     Hoekstra
     Holden
     Holt
     Hooley
     Horn
     Hostettler
     Hoyer
     Hulshof
     Hunter
     Hutchinson
     Hyde
     Inslee
     Isakson
     Istook
     Jackson (IL)
     Jackson-Lee (TX)
     Jefferson
     Jenkins
     John
     Johnson (CT)
     Johnson, E. B.
     Jones (NC)
     Jones (OH)
     Kanjorski
     Kaptur
     Kelly
     Kennedy
     Kildee
     Kilpatrick
     Kind (WI)
     King (NY)
     Kingston
     Klink
     Knollenberg
     Kolbe
     Kucinich
     Kuykendall
     LaHood
     Lampson
     Lantos
     Larson
     Latham
     Lazio
     Leach
     Lee
     Levin
     Lewis (CA)
     Lewis (GA)
     Lewis (KY)
     Lipinski
     LoBiondo
     Lofgren
     Lowey
     Lucas (KY)
     Lucas (OK)
     Luther
     Maloney (CT)
     Maloney (NY)
     Markey
     Martinez
     Mascara
     Matsui
     McCarthy (MO)
     McCarthy (NY)
     McCollum
     McCrery
     McDermott
     McGovern
     McHugh
     McIntyre
     McKeon
     McKinney
     McNulty
     Meehan
     Meek (FL)
     Meeks (NY)
     Menendez
     Metcalf
     Mica
     Millender-McDonald
     Minge
     Mink
     Moakley
     Mollohan
     Moore
     Moran (KS)
     Moran (VA)
     Morella
     Murtha
     Nadler
     Napolitano
     Neal
     Nethercutt
     Ney
     Northup
     Norwood
     Nussle
     Oberstar
     Obey
     Olver
     Ortiz
     Ose
     Owens
     Oxley
     Packard
     Pallone
     Pascrell
     Pastor
     Payne
     Pease
     Pelosi
     Peterson (MN)
     Peterson (PA)
     Petri
     Phelps
     Pickering
     Pickett
     Pitts
     Pombo
     Pomeroy
     Porter
     Portman
     Price (NC)
     Pryce (OH)
     Radanovich
     Rahall
     Ramstad
     Rangel
     Regula
     Reyes
     Reynolds
     Riley
     Rivers
     Rodriguez
     Roemer
     Rogan
     Rogers
     Rothman
     Roukema
     Roybal-Allard
     Rush
     Ryan (WI)
     Ryun (KS)
     Sabo
     Sanchez
     Sanders
     Sandlin
     Sawyer
     Saxton
     Scarborough
     Schaffer
     Schakowsky
     Scott
     Serrano
     Sessions
     Shaw
     Sherman
     Sherwood
     Shimkus
     Shows
     Shuster
     Simpson
     Sisisky
     Skeen
     Skelton
     Slaughter
     Smith (MI)
     Smith (NJ)
     Smith (TX)
     Smith (WA)
     Snyder
     Souder
     Spence
     Spratt
     Stabenow
     Stenholm
     Strickland
     Stump
     Stupak
     Sweeney
     Talent
     Tancredo
     Tanner
     Tauscher
     Tauzin
     Taylor (MS)
     Taylor (NC)
     Terry
     Thomas
     Thompson (CA)
     Thompson (MS)
     Thornberry
     Thune
     Thurman
     Tiahrt
     Tierney
     Towns
     Traficant
     Turner
     Udall (CO)
     Udall (NM)
     Upton
     Velazquez
     Visclosky
     Vitter
     Walden
     Walsh
     Wamp
     Waters
     Watkins
     Watt (NC)
     Watts (OK)
     Waxman
     Weiner
     Weldon (FL)
     Weldon (PA)
     Weller
     Weygand
     Whitfield
     Wicker
     Wilson
     Wise
     Wolf
     Woolsey
     Wynn
     Young (AK)

                                NAYS--37

     Archer
     Armey
     Capuano
     Chabot
     Chenoweth-Hage
     Coburn
     Collins
     Cox
     DeLay
     DeMint
     Doolittle
     Duncan
     Ehlers
     Fossella
     Frank (MA)
     Frelinghuysen
     Johnson, Sam
     Kasich
     Kleczka
     LaFalce
     Largent
     Linder
     Manzullo
     Miller (FL)
     Miller, Gary
     Paul
     Rohrabacher
     Royce
     Salmon
     Sanford
     Sensenbrenner
     Shadegg
     Shays
     Stearns
     Sununu
     Toomey
     Wu

                             NOT VOTING--22

     Baker
     Bliley
     Borski
     Callahan
     Clay
     Cook
     Cooksey
     Doyle
     Gallegly
     Ganske
     Houghton
     LaTourette
     McInnis
     McIntosh
     Miller, George
     Myrick
     Quinn
     Ros-Lehtinen
     Stark
     Vento
     Wexler
     Young (FL)

                              {time}  1810

  Messrs. DeLAY, KASICH and ARMEY changed their vote from ``yea'' to 
``nay.''
  Messrs. DAVIS of Illinois, GUTIERREZ, CROWLEY and HULSHOF changed 
their vote from ``nay'' to ``yea.''
  So the bill was passed.
  The result of the vote was announced as above recorded.
  A motion to reconsider was laid on the table.
  Stated against:
  Mr. TANCREDO. Mr. Speaker, please let the Record reflect that on 
rollcall vote 128, it was my intention to vote ``no.'' The vote, 
``yes,'' was recorded in error.




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