[House Report 106-579]
[From the U.S. Government Publishing Office]
106th Congress Report
HOUSE OF REPRESENTATIVES
2d Session 106-579
======================================================================
PROVIDING FOR THE CONSIDERATION OF H.R. 3615, THE RURAL LOCAL BROADCAST
SIGNAL ACT
_______
April 12, 2000.--Referred to the House Calendar and ordered to be
printed
_______
Mr. Linder, from the Committee on Rules, submitted the following
R E P O R T
[To accompany H. Res. 475]
The Committee on Rules, having had under consideration
House Resolution 475 by a non record vote, report the same to
the House with the recommendation that the resolution be
adopted.
summary of provisions of the resolution
The resolution provides for the consideration of H.R. 3615,
the Rural Local Broadcast Signal Act, under a closed rule. The
rule provides one hour of debate in the House divided equally
between and controlled by the chairmen and ranking minority
members of the Committees on Agriculture and Commerce.
The rule provides that, in lieu of the amendments
recommended by the Committees on Agriculture and Commerce now
printed in the bill, the amendment in the nature of a
substitute printed in this report shall be considered as
adopted. Finally, the rule provides one motion to recommit with
or without instructions.
text of amendment in the nature of a substitute considered as adopted
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 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 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
(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 programming 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. 15. SUNSET.
No loan guarantee may be approved under this Act after
December 31, 2006.