HR 2401 IH
107th CONGRESS
1st Session
H. R. 2401
To bridge the digital divide in rural areas.
IN THE HOUSE OF REPRESENTATIVES
June 28, 2001
Mr. MCHUGH introduced the following bill; which was referred to the Committee
on Energy and Commerce, and in addition to the Committees on Ways and Means, and
Science, for a period to be subsequently determined by the Speaker, in each case
for consideration of such provisions as fall within the jurisdiction of the
committee concerned
A BILL
To bridge the digital divide in rural areas.
Be it enacted by the Senate and House of Representatives of the United
States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the `Rural America Digital Accessibility Act'.
SEC. 2. GRANTS TO FACILITATE DEPLOYMENT OF BROADBAND TELECOMMUNICATIONS
CAPABILITIES TO UNDERSERVED RURAL AREAS.
(a) IN GENERAL- In order to facilitate the deployment by the private
sector of broadband telecommunications networks and capabilities (including
wireless and satellite networks and capabilities) to underserved rural areas,
the Secretary of Commerce (in this section, referred to as the `Secretary')
may--
(1) make grants to eligible recipients for that purpose;
(2) guarantee loans, either whole or in part, of eligible recipients the
proceeds of which are to be used for that purpose; or
(3) carry out activities under both paragraphs (1) and (2).
(b) ELIGIBLE RECIPIENTS- For purposes of this section, an eligible
recipient of a grant or loan guarantee under subsection (a) is any person or
entity selected by the Secretary in accordance with such procedures as the
Secretary shall establish.
(c) UNDERSERVED RURAL AREAS- The Secretary shall identify the areas that
constitute underserved rural areas for purposes of this section.
(d) EMPHASIS ON PARTICULAR CAPABILITIES- In selecting a person or entity
as an eligible recipient of a grant or loan guarantee under subsection (a),
the Secretary shall give particular emphasis to persons or entities that
propose to use the grant or the proceeds of the loan guaranteed, as the case
may be, to leverage non-Federal resources to do one or more of the
following:
(1) Provide underserved rural areas with access to Internet service by
local telephone.
(2) Demonstrate new models or emerging technologies to bring broadband
telecommunications services to underserved rural areas on a cost-effective
basis.
(3) Use broadband telecommunications services to stimulate economic
development, such as providing connections between and among industrial
parks located in such areas and providing high-speed telecommunications
service links to small business incubators.
(e) CONSULTATION- The Secretary may consult with the Federal
Communications Commission in carrying out activities under this section.
(f) LIMITATION ON AMOUNT- The amount of any grants made under this
section, and the cost (as defined in section 502(5) of the Federal Credit
Reform Act of 1990 (2 U.S.C. 661a(5)) of any loans guaranteed under this
section, may not, in the aggregate, exceed $100,000,000.
(g) AUTHORIZATION OF APPROPRIATIONS- There is authorized to be
appropriated for the Department of Commerce for purposes of grants and loan
guarantees under this section $100,000,000 for fiscal year 2002, and such sums
as are necessary for each fiscal year thereafter.
SEC. 3. RESEARCH ON ENHANCEMENT OF BROADBAND TELECOMMUNICATIONS
SERVICES.
(a) IN GENERAL- The Director of the National Science Foundation (in this
section, referred to as the `Director') shall carry out research on the
following:
(1) Means of enhancing or facilitating the availability of broadband
telecommunications services in rural areas and other remote areas.
(2) Means of facilitating or enhancing access to the Internet through
broadband telecommunications services.
(b) SCOPE OF AUTHORITY- The Director may carry out research under
subsection (a) within the National Science Foundation or pursuant to such
grants, agreements, or other arrangements as the Director considers
appropriate.
(c) RESULTS OF RESEARCH- The Director shall make available to the public,
in such manner as the Director considers appropriate, the results of any
research carried out under this section.
(d) AUTHORIZATION OF APPROPRIATIONS- There is authorized to be
appropriated for the National Science Foundation for purposes of activities
under this section $25,000,000 for fiscal year 2002, and such sums as are
necessary for each fiscal year thereafter.
SEC. 4. TAX CREDIT TO HOLDERS OF QUALIFIED TECHNOLOGY BONDS.
(a) IN GENERAL- Part IV of subchapter A of chapter 1 of the Internal
Revenue Code of 1986 (relating to credits against tax) is amended by adding at
the end the following new subpart:
`Subpart H--Nonrefundable Credit for Holders of Qualified Technology
Bonds
`Sec. 54. Credit to holders of qualified technology bonds.
`SEC. 54. CREDIT TO HOLDERS OF QUALIFIED TECHNOLOGY BONDS.
`(a) ALLOWANCE OF CREDIT- In the case of a taxpayer who holds a qualified
technology bond on a credit allowance date of such bond which occurs during
the taxable year, there shall be allowed as a credit against the tax imposed
by this chapter for such taxable year the amount determined under subsection
(b).
`(1) IN GENERAL- The amount of the credit determined under this
subsection with respect to any qualified technology bond is the amount equal
to the product of--
`(A) the credit rate determined by the Secretary under paragraph (2)
for the month in which such bond was issued, multiplied by
`(B) the face amount of the bond held by the taxpayer on the credit
allowance date.
`(2) DETERMINATION- During each calendar month, the Secretary shall
determine a credit rate which shall apply to bonds issued during the
following calendar month. The credit rate for any month is the percentage
which the Secretary estimates will permit the issuance of qualified
technology bonds without discount and without interest cost to the
issuer.
`(c) LIMITATION BASED ON AMOUNT OF TAX- The credit allowed under
subsection (a) for any taxable year shall not exceed the excess of--
`(1) the sum of the regular tax liability (as defined in section 26(b))
plus the tax imposed by section 55, over
`(2) the sum of the credits allowable under this part (other than this
subpart and subpart C).
`(d) QUALIFIED TECHNOLOGY BOND- For purposes of this part--
`(1) IN GENERAL- The term `qualified technology bond' means any bond
issued as part of an issue if--
`(A) 95 percent of more of the proceeds of such issue are to be used
for any or a series of qualified projects,
`(B) the bond is issued by a State or local government within the
jurisdiction of which such project is located,
`(C) the issuer designates such bond for purposes of this
section,
`(D) certifies that it has obtained the written approval of the
Secretary of Commerce for such project, and
`(E) the term of each bond which is part of such issue does not exceed
15 years.
`(A) IN GENERAL- The term `qualified project' means a
project--
`(i) to expand broadband telecommunications services in an area
within the jurisdiction of a State or local government,
`(ii) which is nominated by such State or local government for a
designation as a qualified project, and
`(iii) which the Secretary of Commerce, after consultation with the
Secretary of Housing and Urban Development designates as a qualified
project or a series of qualified projects.
`(B) DESIGNATION PREFERENCES- With respect to designations under this
section, preferences shall be given to--
`(i) nominations of projects involving underserved urban or rural
areas lacking access to high-speed Internet connections, and
`(ii) nominations reflecting partnerships and comprehensive planning
between State and local governments and the private sector.
`(e) LIMITATION ON AMOUNT OF BONDS DESIGNATED-
`(1) NATIONAL LIMITATION- There is a national technology bond limitation
for each calendar year. Such limitation is $100,000,000 for 2002, 2003,
2004, 2005, and 2006, and, except as provided in paragraph (4), zero
thereafter.
`(2) ALLOCATION OF LIMITATION- The national technology bond limitation
for a calendar year shall be allocated by the Secretary among the qualified
projects designated for such year.
`(3) DESIGNATION SUBJECT TO LIMITATION AMOUNT- The maximum aggregate
face amount of bonds issued during any calendar year which may be designated
under subsection (d)(1) with respect to any qualified project shall not
exceed the limitation amount allocated to such project under paragraph (2)
for such calendar year.
`(4) CARRYOVER OF UNUSED LIMITATION- If for any calendar year--
`(A) the national technology limitation amount, exceeds
`(B) the amount of bonds issued during such year which are designated
under subsection (d)(1) with respect to qualified projects,
the national technology limitation amount for the following calendar
year shall be increased by the amount of such excess.
`(f) OTHER DEFINITIONS- For purposes of this subpart--
`(1) BOND- The term `bond' includes any obligation.
`(2) CREDIT ALLOWANCE DATE- The term `credit allowance date' means, with
respect to any issue, the last day of the 1-year period beginning on the
date of issuance of such issue and the last day of each successive 1-year
period thereafter.
`(3) STATE- The term `State' means the several States and the District
of Columbia.
`(g) CREDIT INCLUDED IN GROSS INCOME- Gross income includes the amount of
the credit allowed to the taxpayer under this section (determined without
regard to subsection (c)) and the amount so included shall be treated as
interest income.
`(h) OTHER SPECIAL RULES-
`(1) PARTNERSHIP; S CORPORATION; AND OTHER PASS-THRU ENTITIES- Under
regulations prescribed by the Secretary, in the case of a partnership,
trust, S corporation, or other pass-thru entity, rules similar to the rules
of section 41(g) shall apply with respect to the credit allowable under
subsection (a).
`(2) BONDS HELD BY REGULATED INVESTMENT COMPANIES- If any qualified
technology bond is held by a regulated investment company, the credit
determined under subsection (a) shall be allowed to shareholders of such
company under procedures prescribed by the Secretary.
`(3) TREATMENT FOR ESTIMATED TAX PURPOSES- Solely for purposes of
sections 6654 and 6655, the credit allowed by this section to a taxpayer by
reason of holding a qualified technology bond on a credit allowance date
shall be treated as if it were a payment of estimated tax made by the
taxpayer on such date.
`(4) REPORTING- Issuers of qualified technology bonds shall submit
reports similar to the reports required under section 149(e).'.
(b) REPORTING- Subsection (d) of section 6049 of the Internal Revenue Code
of 1986 (relating to returns regarding payments of interest) is amended by
adding at the end the following new paragraph:
`(8) REPORTING OF CREDIT ON QUALIFIED TECHNOLOGY BONDS-
`(A) IN GENERAL- For purposes of subsection (a), the term `interest'
includes amounts includible in gross income under section 54(g) and such
amounts shall be treated as paid on the credit allowance date (as defined
in section 54(f)(2)).
`(B) REPORTING TO CORPORATIONS, ETC- Except as otherwise provided in
regulations, in the case of any interest described in subparagraph (A) of
this paragraph, subsection (b)(4) of this section shall be applied without
regard to subparagraphs (A), (H), (I), (J), (K), and (L)(i).
`(C) REGULATORY AUTHORITY- The Secretary may prescribe such
regulations as are necessary or appropriate to carry out the purposes of
this paragraph, including regulations which require more frequent or more
detailed reporting.'.
(1) The table of subparts for part IV of subchapter A of chapter 1 of
the Internal Revenue Code of 1986 is amended by adding at the end the
following new item:
`Subpart H. Nonrefundable Credit for Holders of Qualified Technology
Bonds.'.
(2) Section 6401(b)(1) of such Code is amended by striking `and G' and
inserting `G, and H'.
(d) EFFECTIVE DATE- The amendments made by this section shall apply to
obligations issued after December 31, 2001.
SEC. 5. GRANTS FOR TECHNOLOGY EXTENSION.
(a) PURPOSE- It is the purpose of this section--
(1) to encourage meaningful use of the most advanced available
technologies by small businesses and medium-sized businesses to the maximum
extent possible to improve the productivity of those businesses and thereby
to promote economic growth; and
(2) to promote regional partnerships between educational institutions
and businesses to develop such technologies and products in the surrounding
areas.
(b) GRANT PROGRAM- To achieve the purpose of this section, the Secretary
of Commerce (in this section, referred to as the `Secretary') shall carry out
a program to provide, through grants, financial assistance for the
establishment and support of regional centers for the commercial use of
advanced technologies by small businesses and medium-sized businesses.
(c) ELIGIBILITY- An entity is eligible to receive a grant as a regional
center under this section if the entity--
(1) is affiliated with a United States-based institution or organization
that is operated on a not-for-profit basis, or any combination of two or
more of such institutions or organizations;
(2) offers to enter into an agreement with the Secretary to function as
a regional center for the commercial use of advanced technologies for the
purpose of this section within a region determined appropriate by the
Secretary; and
(3) demonstrates that it has the capabilities necessary to achieve the
purpose of this section through its operations as a center within that
region.
(d) SELECTION OF APPLICANTS-
(1) COMPETITIVE PROCESS- The Secretary shall use a competitive process
for the awarding of grants under this section and, under that process,
select recipients of the grants on the basis of merit, with priority given
to underserved areas.
(2) APPLICATIONS FOR GRANTS- The Secretary shall prescribe the form and
content of applications required for grants under this section.
(e) SPECIFIC ACTIVITIES OF REGIONAL CENTERS- A regional center may use the
proceeds of a grant under this section for any activity that carries out the
purpose of this section, including such activities as the following:
(1) Assist small businesses and medium-sized businesses to address their
most critical needs for
the application of the latest technology, improvement of infrastructure, and
use of best business practices.
(2) In conjunction with institutions of higher education and
laboratories located in the region, transfer technologies to small
businesses and medium-sized businesses located in such region to create jobs
and increase production in surrounding areas.
(f) ADDITIONAL ADMINISTRATIVE AUTHORITIES-
(1) COST-SHARING- The Secretary may require the recipient of a grant to
defray, out of funds available from sources other than the Federal
Government, a specific level of the operating expenses of the regional
center for which the grant is made.
(2) ADDITIONAL TERMS AND CONDITIONS- The Secretary, in awarding a grant,
may impose any other terms and conditions for the use of the proceeds of the
grant that the Secretary determines appropriate for carrying out the
purposes of this section and to protect the interests of the United
States.
(g) DEFINITIONS OF SMALL BUSINESS AND MEDIUM-SIZED BUSINESS-
(1) SECRETARY TO PRESCRIBE- The Secretary shall prescribe the
definitions of the terms `small business' and `medium-sized business' for
the purpose of this section.
(2) SMALL BUSINESS STANDARDS- In defining the term `small business', the
Secretary shall apply the standards applicable for the definition of the
term `small-business concern' under section 3 of the Small Business Act (15
U.S.C. 632).
(h) REGULATIONS- The Secretary shall prescribe regulations for the grant
program administered under this section.
(i) AUTHORIZATION OF APPROPRIATIONS- There is authorized to be
appropriated for the Department of Commerce for carrying out this section
$125,000,000 for fiscal year 2002, and such sums as are necessary for each
fiscal year thereafter.
END