INTRODUCTION OF THE MINGE-HOOLEY COMPREHENSIVE RURAL TELECOMMUNICATIONS ACT -- HON. DAVID MINGE (Extensions of Remarks - July 27, 2000)

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HON. DAVID MINGE OF MINNESOTA IN THE HOUSE OF REPRESENTATIVES Thursday, July 27, 2000

Mr. MINGE. Mr. Speaker, today I announce the introduction of landmark legislation to help maintain the viability of America's rural economy. I join with my colleague Representative DARLENE HOOLEY and members of the Democratic Rural Task Force in introducing the Comprehensive Rural Telecommunications Act.

Several months ago, I was given the opportunity to chair the Democratic Rural Task Force. This task force was developed with the aim of pursuing initiatives which ensure our rural communities are not left behind in the new millennium. Many factors comprise a robust economy. That is true in an urban, suburban or rural community. It was my job to decide which economic sectors of rural America we could most realistically pursue.

With the advice and input of the telecommunications innovators in my Congressional district, I saw the important need for a strong investment in telecommunications infrastructure to provide for the maintenance and future growth of rural America. The Internet creates great commercial opportunities; therefore, telecommunications infrastructures are more than ever a crucial tool of our economic development. However, rural communities are at a real disadvantage when it comes to building these new advanced networks, given their distance from urban centers and low population densities. Telecommunication providers often prefer to deploy advanced telecommunication systems in urban areas, where fixed costs are spread over more customers and volume is greater.

The gentlewoman from Oregon and I set to work on an ambitious proposal that would take a comprehensive approach rather than several fragmented efforts. This collaborative effort led to the three part Comprehensive Rural Telecommunications Act. Our legislation combines incentives for infrastructure creation along with the educational opportunities needed to ensure a population who can utilize the new infrastructure.

The legislation establishes National Centers for Distance Working which would provide training, referral, and employment-related services and assistance to individuals in rural communities and Indian Tribes to support the use of teleworking in information and high technology fields. These centers would help people in rural areas link up with employers so they could take advantage of new career opportunities even if they do not live in areas with numerous employers.

To encourage infrastructure creation, the legislation provides a 10% to 15% tax credit on expenditures by companies deploying broadband (1.5 MBPS) or enhanced broadband (10 MBPS) in rural areas. The legislation also authorizes the USDA's Rural Utility Service to provide up to $3 billion in loans or credit extensions to eligible telecommunications carrier providers to finance the deployment of broadband service in rural communities.

A special thanks goes to the esteemed Senators DORGAN, ROCKEFELLER, and WELLSTONE. Much of this legislation is based on individual bills they have previously introduced. I would also like to thank the Chairman of the Democratic Caucus, Representative MARTIN FROST.

Mr. Speaker, I request that my House colleagues join with me in supporting and passing the Minge-Hooley Comprehensive Rural Telecommunications Act, which is critical to rural America's future.
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