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[House Report 106-579]
[From the U.S. Government Publishing Office]

106th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES
 2d Session                                                     106-579

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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.

                                  
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