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S.2448
Broadband Telecommunications Deployment Act of 2002 (Introduced in Senate)
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) SHORT TITLE- This Act may be cited as the `Broadband Telecommunications Deployment Act of 2002'.
The table of contents for this Act is as follows:
Sec. 1. Short title; table of contents.
TITLE I--TRUST FUND FOR BROADBAND LOANS AND GRANTS
Sec. 101. Broadband deployment trust fund.
TITLE II--ACCESS TO BROADBAND TELECOMMUNICATIONS SERVICES IN RURAL AREAS
Sec. 202. Grants for planning and feasibility studies on broadband deployment.
Sec. 203. Pilot program for wireless or satellite broadband trials in rural areas.
Sec. 204. Rural and underserved community broadband technology initiative.
Sec. 205. Report on universal service and competition.
Sec. 206. Block grants to States for broadband deployment.
Sec. 207. GAO to study broadband deployment in other countries.
Sec. 208. Assessment of homeland security and public safety needs in rural and underserved areas.
TITLE III--RESEARCH ON TECHNICAL AND FINANCIAL REQUIREMENTS FOR FASTER BROADBAND SERVICES
Sec. 301. Research enhancement of broadband telecommunications services.
Sec. 302. Grants to colleges and universities to research faster broadband technology.
TITLE IV--STIMULATING DEMAND FOR BROADBAND SERVICES
Sec. 401. Grants to colleges and universities for research.
Sec. 402. Grants to libraries to digitize collections.
Sec. 403. Grants to museums to digitize collections.
Sec. 404. Grants for DTV conversion and programming.
TITLE V--DIGITAL NETWORK TECHNOLOGY PROGRAM
Sec. 501. Amendment of National Telecommunications and Information Administration Organization Act.
SEC. 2. FINDINGS.
The Congress finds the following:
(1) Broadband service could revolutionize the way Americans live. Therefore, it is important that Congress examine the issues surrounding the availability and subscription to broadband service.
(2) The Federal Communications Commission recently concluded that advanced telecommunications capability is being deployed in a reasonable and timely manner and that although investment trends in general have slowed recently, investment in infrastructure for advanced telecommunications remains strong.
(3) Approximately 85 percent of Americans have access to broadband service provided by either the cable or telephone companies.
(4) Some communities, such as those in rural and urban areas do not have access to broadband service.
(5) According to numerous reports only 10 to 12 percent of consumers actually subscribe to broadband service, leading many to believe that the low adoption of broadband by consumers is not due to low availability, but instead to a lack of demand by consumers. In the top one-tenth of zip codes ranked by median family income, high-speed subscribers were reported in 96 percent of the zip codes. By contrast, high speed subscribers were reported in 59 percent of zip codes with the lowest median family income.
(6) Cable and telephone companies provide broadband service with speeds of up to 1.5 megabits per second to residential consumers. However, many in the technology industry state that higher speeds are needed to provide telemedicine, video conferencing, movie and music over the internet and other internet applications.
(7) The Federal Communications Commission's policies for promoting broadband deployment must not undermine competition or universal service.
(8) Congress must explore ways to ensure that broadband service is available to all Americans and that no one is left behind. This includes exploring ways to increase deployment in unserved and underserved areas, address consumer demand factors, facilitate innovation that results in higher service speeds, and promote consumer confidence when using the Internet.
TITLE I--TRUST FUND FOR BROADBAND LOANS AND GRANTS
SEC. 101. BROADBAND DEPLOYMENT TRUST FUND.
(a) IN GENERAL- The National Telecommunications and Information Administration Organization Act is amended--
(1) by redesignating part C as part D; and
(2) by inserting after part B (47 U.S.C. 921 et seq.) the following new part:
`PART C--ASSISTANCE TO PROMOTE BROADBAND DEPLOYMENT AND DEMAND.
`SEC. 131. BROADBAND DEPLOYMENT AND DEMAND TRUST FUND.
`(a) CREATION OF TRUST FUND- There is established in the Treasury of the United States a trust fund to be known as the Broadband Deployment and Demand Trust Fund.
`(b) EXPENDITURES FROM TRUST FUND- Amounts in the Trust Fund shall be available for making expenditures to carry out the provisions of the Broadband Telecommunications Deployment Act of 2002, and for such expenditures as may be necessary to administer the programs established therein.
`(c) TREATMENT AS TRUST FUND- Subchapter B of chapter 98 of the Internal Revenue Code of 1986 shall apply to the administration of the Trust Fund.
`SEC. 132. REGULATIONS.
`The Secretary of Commerce may prescribe such regulations as may be necessary to carry out this part.
`SEC. 133. AUTHORIZATION OF APPROPRIATIONS.
`(a) AUTHORIZATION- For each of fiscal years 2003 through 2007 there are authorized to be appropriated to the Broadband Deployment and Demand Trust Fund an amount equivalent to 50 percent of the taxes received in the Treasury after September 30, 2002, and before October 1, 2007, under section 4251 (relating to tax on communications) of the Internal Revenue Code of 1986.
`(b) SUNSET OF APPROPRIATIONS STREAM- The authorization of appropriations by subsection (a) Trust Fund shall terminate at the end of fiscal year 2007, but
any balances remaining in the Trust Fund at the close of that fiscal year, and any repayments of loans made from the Trust Fund received after fiscal year 2007, shall remain available for obligation and expenditure from the Trust Fund.'.
TITLE II--ACCESS TO BROADBAND TELECOMMUNICATIONS SERVICES IN RURAL AREAS
SEC. 201. LOAN PROGRAM.
(a) PURPOSE- The purpose of this section is to provide loans to fund the costs of the construction, improvement, and acquisition of facilities and equipment for broadband service in eligible rural and underserved communities.
(b) DEFINITIONS- In this section:
(1) BROADBAND SERVICE- The term `broadband service' means any technology identified by the National Telecommunications and Information Administration, in consultation with the Rural Utilities Service of the Department of Agriculture, as having the capacity to transmit data to enable a subscriber to the service to originate and receive high-quality voice, high-speed data, graphics, or video.
(2) ELIGIBLE RURAL COMMUNITY- The term `eligible rural community' means any incorporated or unincorporated place that--
(A) has not more than 50,000 inhabitants, based on the most recent available population statistics of the Bureau of the Census; and
(B) is not located in an area designated as a standard metropolitan statistical area.
(3) ELIGIBLE UNDERSERVED COMMUNITY- The term `eligible underserved community' means any census tract located in--
(A) an empowerment zone or enterprise community designated under section 1391 of the Internal Revenue Code of 1986;
(B) the District of Columbia Enterprise Zone established under section 1400 of such Code;
(C) a renewal community designated under section 1400E of such Code; or
(D) a low-income community designated under section 45D of such Code.
(1) IN GENERAL- The Rural Utilities Service, in consultation with National Telecommunications and Information Administration, shall make loans to eligible entities to provide funds for the construction, improvement, or acquisition of facilities and equipment for the provision of broadband service in eligible rural and underserved communities.
(2) LOANS TO LECS- The Rural Utilities Service, in consultation with National Telecommunications and Information Administration, shall make loans to local exchange carriers (as defined in section 3(26) of the Communications Act of 1934 (47 U.S.C. 151(26)) that are eligible entities to provide funds to upgrade or install remote terminals located more than 25,000 feet from the closest central office of the local exchange carrier, and for the installation of fiber optic cable or broadband wireless facilities between such remote terminals and the closest central office of a local exchange carrier, in order to provide broadband service to eligible rural and underserved communities.
(3) EFFECT OF COMMUNICATIONS POLICY- Notwithstanding any other provision of this section, the Rural Utilities Service may not make a loan under this subsection if the National Telecommunications and Information Administration determines that the loan would have an adverse effect on communications policy, including competition in the communications marketplace.
(d) ELIGIBLE ENTITIES- To be eligible to obtain a loan under this section, an entity shall--
(1) be able to furnish, improve, or extend a broadband service to an eligible rural or underserved community; and
(2) submit to the Rural Utilities Service a proposal for a project that meets the requirements of this section.
(e) BROADBAND SERVICE- The National Telecommunications and Information Administration shall, from time to time as advances in technology warrant, review and recommend modifications to the rate-of-data transmission criteria for purposes of the identification of broadband service technologies under subsection (b)(1).
(f) TECHNOLOGICAL NEUTRALITY- For purposes of determining whether to make a loan for a project under this section, the Rural Utilities Service shall apply technologically neutral criteria and encourage the use of a variety of landline and wireless technologies among applications.
(g) TERMS AND CONDITIONS FOR LOANS- A loan under subsection (d) shall--
(1) be made available in accordance with the requirements of the Federal Credit Reform Act of 1990 (2 U.S.C. 661 et seq.);
(2) bear interest at an annual rate, as determined by the National Telecommunications and Information Administration, in consultation with the Rural Utilities Service, of--
(A) 4 percent per annum; or
(B) the current applicable market rate; and
(3) have a term not to exceed the useful life of the assets constructed, improved, or acquired with the proceeds of the loan or extension of credit.
(h) USE OF LOAN PROCEEDS TO REFINANCE LOANS FOR DEPLOYMENT OF BROADBAND SERVICE- Notwithstanding any other provision of this Act, the proceeds of any loan made by the Rural Utilities Service under this Act may be used by the recipient of the loan for the purpose of refinancing an outstanding obligation of the recipient on another telecommunications loan made under this Act if the use of the proceeds for that purpose will further the construction, improvement, or acquisition of facilities and equipment for the provision of broadband service in eligible rural and underserved communities.
(i) INCUMBENT LOCAL EXCHANGE CARRIER MUST MAKE UPGRADED FACILITIES AVAILABLE- In addition to any other requirement to provide unbundled network elements, any incumbent local exchange carrier (as defined in section 251(h) of the Communications Act of 1934 (47 U.S.C. 251(h))) that uses funds made available under subsection (c)(2) shall make remote terminals and fiber optic cable so funded, and any loop that includes such components, available to a requesting telecommunications carrier on an unbundled basis in accordance with the requirements of sections 251 and 252 of the Communications Act of 1934 (47 U.S.C. 251, 252).
(1) IN GENERAL- The Secretary of Commerce shall make available from amounts in the Broadband Deployment and Demand Trust Fund not more than $125,000,000 for each of fiscal years 2003 through 2007 for loans under this section, of which $25,000,000 shall be for loans under subsection (c)(2).
(2) VALUE OF LOANS OUTSTANDING- The aggregate value of all loans made under this section shall be at least $2,500,000,000 for each such fiscal year, including not more than $500,000,000 for outstanding loans under subsection (c)(2).
(A) IN GENERAL- From amounts made available for each fiscal year under paragraph (1), the Rural Utilities Service shall establish a national reserve for loans to eligible entities in States under this section.
(B) UNOBLIGATED AMOUNTS- Any amounts in the reserve established for a State for a fiscal year under subparagraph (A) that are not obligated by April 1 of the fiscal year shall be available to the Rural Utilities Service to make loans under this section to eligible entities in any State, as determined by the Rural Utilities Service.
SEC. 202. GRANTS FOR PLANNING AND FEASIBILITY STUDIES ON BROADBAND DEPLOYMENT.
(a) IN GENERAL- The National Telecommunications and Information Administration shall make grants to non-profit organizations for planning and feasibility studies on the deployment of broadband services in different geographic areas, including towns, cities, counties, and States.
(b) ELIGIBILITY CRITERIA-
(1) IN GENERAL- The National Telecommunications and Information Administration may establish additional criteria for eligibility for grants under this section, including criteria for the scope of the planning and feasibility studies to be carried out with grants under this section.
(2) CONTRIBUTION BY GRANTEE- An organization may not be awarded a grant under this section unless the entity agrees to contribute (out of funds other than the grant amount) to the planning and feasibility study to be funded by the grant an amount equal to the amount of the grant.
(c) APPLICATION- An organization seeking a grant under this section shall submit an application for the grant to National Telecommunications and Information Administration that is in such form, and that contains such information, as the National Telecommunications and Information Administration shall require.
(d) LIMITATION ON USE OF GRANT AMOUNTS- Grant amounts under this section may not be used for the acquisition of office equipment, the construction of buildings or other facilities, the acquisition or improvement of existing buildings or facilities, or the leasing of office space.
(e) RESERVATION OF FUNDS FOR GRANTS-
(1) IN GENERAL- The Secretary of Commerce shall make available from amounts in the Broadband Deployment and Demand Trust Fund not more than $60,000,000 for each of fiscal years 2003 through 2007 as a reserve for grants under this section.
(2) RELEASE- Funds reserved under paragraph (1) for a fiscal year shall be reserved only until April 1 of the fiscal year.
(f) SUPPLEMENT NOT SUPPLANT-
(1) IN GENERAL- Eligibility for a grant under this section shall not affect eligibility for a grant or loan under another section of this Act.
(2) CONSIDERATIONS- The National Telecommunications and Information Administration may not take into account the award of a grant under this section, or the award of a grant or loan under another section of this Act, in awarding a grant or loan under this section or another section of this Act, as the case may be.
(g) TERMINATION OF AUTHORITY-
(1) IN GENERAL- No grant may be made under this section after September 30, 2007.
(2) EFFECT ON VALIDITY OF GRANT- Notwithstanding paragraph (1), any grant made under this section before the date specified in paragraph (1) shall be valid.
SEC. 203. PILOT PROGRAM FOR WIRELESS OR SATELLITE BROADBAND TRIALS IN RURAL AREAS.
(a) IN GENERAL- The National Telecommunications and Information Administration shall support up to 7 pilot programs in each of fiscal years 2003 through 2007 for conducting innovative applications of wireless, satellite, and other non-wireline technologies capable of delivering broadband service (as defined in section 201(b)(1)) to an eligible rural community (as defined in section 201(b)(2)) or an eligible underserved community (as defined in section 201(b)(3)). The National Telecommunications and Information Administration shall support 1 pilot program per year for fiber-to-the-home technology under this subsection except for any year for which no application is received for such a program.
(b) APPLICATION PROCEDURES AND CONDITIONS- The National Telecommunications and Information Administration shall establish such application procedures and conditions for grants under this section as it deems appropriate.
(c) FUNDING- The Secretary of Commerce shall make available from the Broadband Deployment and Demand Trust Fund up to $2,000,000 per year for each pilot program under subsection (a).
SEC. 204. RURAL AND UNDERSERVED COMMUNITY BROADBAND TECHNOLOGY INITIATIVE.
The Director of the National Institute of Standards and Technology, through the Advanced Technology Program, may hold a portion of the Institute's competitions in thematic areas, selected after consultation with industry, academics, and other Federal Agencies, designed to develop and improve technical capabilities with respect to the speed, quality, and availability of technologies that will extend the reach of broadband Internet services to individuals living in eligible rural communities (as defined in section 201(b)(2)) and eligible underserved communities (as defined in section 201(b)(3)).
SEC. 205. REPORT ON UNIVERSAL SERVICE AND COMPETITION.
No later than May 1, 2003, a Federal-State Joint Board established pursuant to section 410(c) of the Communications Act of 1934 (47 U.S.C. 410(c)) and the National Exchange Carriers Association shall report to the Federal Communications Commission and to the Senate Committee on Commerce, Science, and Transportation and the House of Representatives Committee on Energy and Commerce on--
(1) the effect of reclassifying telecommunications services provided by incumbent local exchange carriers on--
(A) the level of support available for universal service;
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