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[Congressional Bills 110th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5682 Introduced in House (IH)]

110th CONGRESS
  2d Session
                                H. R. 5682

 To improve access to broadband service in rural and underserved areas 
             of the United States, and for other purposes.

_______________________________________________________________________

                    IN THE HOUSE OF REPRESENTATIVES

                             April 2, 2008

  Mr. Allen introduced the following bill; which was referred to the 
Committee on Energy and Commerce, and in addition to the Committees on 
    Ways and Means and Agriculture, for a period to be subsequently 
   determined by the Speaker, in each case for consideration of such 
 provisions as fall within the jurisdiction of the committee concerned

_______________________________________________________________________

                                 A BILL

 
 To improve access to broadband service in rural and underserved areas 
             of the United States, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Rural America Communication 
Expansion for the Future Act of 2008''.

TITLE I--TAX INCENTIVES FOR BROADBAND SERVICES IN RURAL AND UNDERSERVED 
                                 AREAS

SEC. 101. EXPENSING OF BROADBAND INTERNET ACCESS EXPENDITURES.

    (a) In General.--Part VI of subchapter B of chapter 1 of the 
Internal Revenue Code of 1986 (relating to itemized deductions for 
individuals and corporations) is amended by inserting after section 190 
the following new section:

``SEC. 191. BROADBAND EXPENDITURES.

    ``(a) Treatment of Expenditures.--
            ``(1) In general.--A taxpayer may elect to treat any 
        qualified broadband expenditure which is paid or incurred by 
        the taxpayer as an expense which is not chargeable to capital 
        account. Any expenditure which is so treated shall be allowed 
        as a deduction.
            ``(2) Election.--An election under paragraph (1) shall be 
        made at such time and in such manner as the Secretary may 
        prescribe by regulation.
    ``(b) Qualified Broadband Expenditures.--For purposes of this 
section--
            ``(1) In general.--The term `qualified broadband 
        expenditure' means, with respect to any taxable year, any 
        direct or indirect costs incurred after the date of the 
        enactment of this section and before the date which is 4 years 
        after such date and properly taken into account with respect 
        to--
                    ``(A) the purchase or installation of qualified 
                equipment (including any upgrades thereto), and
                    ``(B) the connection of such qualified equipment to 
                any qualified subscriber.
            ``(2) Certain satellite expenditures excluded.--Such term 
        shall not include any costs incurred with respect to the 
        launching of any satellite equipment.
            ``(3) Leased equipment.--Such term shall include so much of 
        the purchase price paid by the lessor of qualified equipment 
        subject to a lease described in subsection (c)(2)(B) as is 
        attributable to expenditures incurred by the lessee which would 
        otherwise be described in paragraph (1).
            ``(4) Limitation with regard to current generation 
        broadband services.--Only 50 percent of the amounts taken into 
        account under paragraph (1) with respect to qualified equipment 
        through which current generation broadband services are 
        provided shall be treated as qualified broadband expenditures.
    ``(c) When Expenditures Taken Into Account.--For purposes of this 
section--
            ``(1) In general.--Qualified broadband expenditures with 
        respect to qualified equipment shall be taken into account with 
        respect to the first taxable year in which--
                    ``(A) current generation broadband services are 
                provided through such equipment to qualified 
                subscribers, or
                    ``(B) next generation broadband services are 
                provided through such equipment to qualified 
                subscribers.
            ``(2) Limitation.--
                    ``(A) In general.--Qualified expenditures shall be 
                taken into account under paragraph (1) only with 
                respect to qualified equipment--
                            ``(i) the original use of which commences 
                        with the taxpayer, and
                            ``(ii) which is placed in service, after 
                        the date of the enactment of this section.
                    ``(B) Sale-leasebacks.--For purposes of 
                subparagraph (A), if property--
                            ``(i) is originally placed in service after 
                        the date of the enactment of this section by 
                        any person, and
                            ``(ii) sold and leased back by such person 
                        within 3 months after the date such property 
                        was originally placed in service,
                such property shall be treated as originally placed in 
                service not earlier than the date on which such 
                property is used under the leaseback referred to in 
                clause (ii).
    ``(d) Special Allocation Rules.--
            ``(1) Current generation broadband services.--For purposes 
        of determining the amount of qualified broadband expenditures 
        under subsection (a)(1) with respect to qualified equipment 
        through which current generation broadband services are 
        provided, if the qualified equipment is capable of serving both 
        qualified subscribers and other subscribers, the qualified 
        broadband expenditures shall be multiplied by a fraction--
                    ``(A) the numerator of which is the sum of the 
                number of potential qualified subscribers within the 
                rural areas and the underserved areas which the 
                equipment is capable of serving with current generation 
                broadband services, and
                    ``(B) the denominator of which is the total 
                potential subscriber population of the area which the 
                equipment is capable of serving with current generation 
                broadband services.
            ``(2) Next generation broadband services.--For purposes of 
        determining the amount of qualified broadband expenditures 
        under subsection (a)(1) with respect to qualified equipment 
        through which next generation broadband services are provided, 
        if the qualified equipment is capable of serving both qualified 
        subscribers and other subscribers, the qualified expenditures 
        shall be multiplied by a fraction--
                    ``(A) the numerator of which is the sum of--
                            ``(i) the number of potential qualified 
                        subscribers within the rural areas and 
                        underserved areas, plus
                            ``(ii) the number of potential qualified 
                        subscribers within the area consisting only of 
                        residential subscribers not described in clause 
                        (i),
                which the equipment is capable of serving with next 
                generation broadband services, and
                    ``(B) the denominator of which is the total 
                potential subscriber population of the area which the 
                equipment is capable of serving with next generation 
                broadband services.
    ``(e) Definitions.--For purposes of this section--
            ``(1) Antenna.--The term `antenna' means any device used to 
        transmit or receive signals through the electromagnetic 
        spectrum, including satellite equipment.
            ``(2) Cable operator.--The term `cable operator' has the 
        meaning given such term by section 602(5) of the Communications 
        Act of 1934 (47 U.S.C. 522(5)).
            ``(3) Commercial mobile service carrier.--The term 
        `commercial mobile service carrier' means any person authorized 
        to provide commercial mobile radio service as defined in 
        section 20.3 of title 47, Code of Federal Regulations.
            ``(4) Current generation broadband service.--The term 
        `current generation broadband service' means the transmission 
        of signals at a rate of at least 5,000,000 bits per second to 
        the subscriber and at least 1,000,000 bits per second from the 
        subscriber.
            ``(5) Multiplexing or demultiplexing.--The term 
        `multiplexing' means the transmission of 2 or more signals over 
        a single channel, and the term `demultiplexing' means the 
        separation of 2 or more signals previously combined by 
        compatible multiplexing equipment.
            ``(6) Next generation broadband service.--The term `next 
        generation broadband service' means the transmission of signals 
        at a rate of at least 50,000,000 bits per second to the 
        subscriber and at least 10,000,000 bits per second from the 
        subscriber.
            ``(7) Nonresidential subscriber.--The term `nonresidential 
        subscriber' means any person who purchases broadband services 
        which are delivered to the permanent place of business of such 
        person.
            ``(8) Open video system operator.--The term `open video 
        system operator' means any person authorized to provide service 
        under section 653 of the Communications Act of 1934 (47 U.S.C. 
        573).
            ``(9) Other wireless carrier.--The term `other wireless 
        carrier' means any person (other than a telecommunications 
        carrier, commercial mobile service carrier, cable operator, 
        open video system operator, or satellite carrier) providing 
        current generation broadband service or next generation 
        broadband service to subscribers through the radio transmission 
        of energy.
            ``(10) Packet switching.--The term `packet switching' means 
        controlling or routing the path of any digitized transmission 
        signal which is assembled into packets or cells.
            ``(11) Provider.--The term `provider' means, with respect 
        to any qualified equipment--
                    ``(A) a cable operator,
                    ``(B) a commercial mobile service carrier,
                    ``(C) an open video system operator,
                    ``(D) a satellite carrier,
                    ``(E) a telecommunications carrier, or
                    ``(F) any other wireless carrier,
        providing current generation broadband services or next 
        generation broadband services to subscribers through such 
        qualified equipment.
            ``(12) Provision of services.--A provider shall be treated 
        as providing services to 1 or more subscribers if--
                    ``(A) such a subscriber has been passed by the 
                provider's equipment and can be connected to such 
                equipment for a standard connection fee,
                    ``(B) the provider is physically able to deliver 
                current generation broadband services or next 
                generation broadband services, as applicable, to such a 
                subscriber without making more than an insignificant 
                investment with respect to such subscriber,
                    ``(C) the provider has made reasonable efforts to 
                make such subscribers aware of the availability of such 
                services,
                    ``(D) such services have been purchased by 1 or 
                more such subscribers, and
                    ``(E) such services are made available to such 
                subscribers at average prices comparable to those at 
                which the provider makes available similar services in 
                any areas in which the provider makes available such 
                services.
            ``(13) Qualified equipment.--
                    ``(A) In general.--The term `qualified equipment' 
                means equipment which provides current generation 
                broadband services or next generation broadband 
                services--
                            ``(i) at least a majority of the time 
                        during periods of maximum demand to each 
                        subscriber who is utilizing such services, and
                            ``(ii) in a manner substantially the same 
                        as such services are provided by the provider 
                        to subscribers through equipment with respect 
                        to which no deduction is allowed under 
                        subsection (a)(1).
                    ``(B) Only certain investment taken into account.--
                Except as provided in subparagraph (C) or (D), 
                equipment shall be taken into account under 
                subparagraph (A) only to the extent it--
                            ``(i) extends from the last point of 
                        switching to the outside of the unit, building, 
                        dwelling, or office owned or leased by a 
                        subscriber in the case of a telecommunications 
                        carrier,
                            ``(ii) extends from the customer side of 
                        the mobile telephone switching office to a 
                        transmission/receive antenna (including such 
                        antenna) owned or leased by a subscriber in the 
                        case of a commercial mobile service carrier,
                            ``(iii) extends from the customer side of 
                        the headend to the outside of the unit, 
                        building, dwelling, or office owned or leased 
                        by a subscriber in the case of a cable operator 
                        or open video system operator, or
                            ``(iv) extends from a transmission/receive 
                        antenna (including such antenna) which 
                        transmits and receives signals to or from 
                        multiple subscribers, to a transmission/receive 
                        antenna (including such antenna) on the outside 
                        of the unit, building, dwelling, or office 
                        owned or leased by a subscriber in the case of 
                        a satellite carrier or other wireless carrier, 
                        unless such other wireless carrier is also a 
                        telecommunications carrier.
                    ``(C) Packet switching equipment.--Packet switching 
                equipment, regardless of location, shall be taken into 
                account under subparagraph (A) only if it is deployed 
                in connection with equipment described in subparagraph 
                (B) and is uniquely designed to perform the function of 
                packet switching for current generation broadband 
                services or next generation broadband services, but 
                only if such packet switching is the last in a series 
                of such functions performed in the transmission of a 
                signal to a subscriber or the first in a series of such 
                functions performed in the transmission of a signal 
                from a subscriber.
                    ``(D) Multiplexing and demultiplexing equipment.--
                Multiplexing and demultiplexing equipment shall be 
                taken into account under subparagraph (A) only to the 
                extent it is deployed in connection with equipment 
                described in subparagraph (B) and is uniquely designed 
                to perform the function of multiplexing and 
                demultiplexing packets or cells of data and making 
                associated application adaptions, but only if such 
                multiplexing or demultiplexing equipment is located 
                between packet switching equipment described in 
                subparagraph (C) and the subscriber's premises.
            ``(14) Qualified subscriber.--The term `qualified 
        subscriber' means--
                    ``(A) with respect to the provision of current 
                generation broadband services--
                            ``(i) any nonresidential subscriber 
                        maintaining a permanent place of business in a 
                        rural area or underserved area, or
                            ``(ii) any residential subscriber residing 
                        in a dwelling located in a rural area or 
                        underserved area which is not a saturated 
                        market, and
                    ``(B) with respect to the provision of next 
                generation broadband services--
                            ``(i) any nonresidential subscriber 
                        maintaining a permanent place of business in a 
                        rural area or underserved area, or
                            ``(ii) any residential subscriber.
            ``(15) Residential subscriber.--The term `residential 
        subscriber' means any individual who purchases broadband 
        services which are delivered to such individual's dwelling.
            ``(16) Rural area.--The term `rural area' means any census 
        tract which--
                    ``(A) is not within 10 miles of any incorporated or 
                census designated place containing more than 25,000 
                people, and
                    ``(B) is not within a county or county equivalent 
                which has an overall population density of more than 
                500 people per square mile of land.
            ``(17) Rural subscriber.--The term `rural subscriber' means 
        any residential subscriber residing in a dwelling located in a 
        rural area or nonresidential subscriber maintaining a permanent 
        place of business located in a rural area.
            ``(18) Satellite carrier.--The term `satellite carrier' 
        means any person using the facilities of a satellite or 
        satellite service licensed by the Federal Communications 
        Commission and operating in the Fixed-Satellite Service under 
        part 25 of title 47 of the Code of Federal Regulations or the 
        Direct Broadcast Satellite Service under part 100 of title 47 
        of such Code to establish and operate a channel of 
        communications for distribution of signals, and owning or 
        leasing a capacity or service on a satellite in order to 
        provide such point-to-multipoint distribution.
            ``(19) Saturated market.--The term `saturated market' means 
        any census tract in which, as of the date of the enactment of 
        this section--
                    ``(A) current generation broadband services have 
                been provided by a single provider to 85 percent or 
                more of the total number of potential residential 
                subscribers residing in dwellings located within such 
                census tract, and
                    ``(B) such services can be utilized--
                            ``(i) at least a majority of the time 
                        during periods of maximum demand by each such 
                        subscriber who is utilizing such services, and
                            ``(ii) in a manner substantially the same 
                        as such services are provided by the provider 
                        to subscribers through equipment with respect 
                        to which no deduction is allowed under 
                        subsection (a)(1).
            ``(20) Subscriber.--The term `subscriber' means any person 
        who purchases current generation broadband services or next 
        generation broadband services.
            ``(21) Telecommunications carrier.--The term 
        `telecommunications carrier' has the meaning given such term by 
        section 3(44) of the Communications Act of 1934 (47 U.S.C. 
        153(44)), but--
                    ``(A) includes all members of an affiliated group 
                of which a telecommunications carrier is a member, and
                    ``(B) does not include a commercial mobile service 
                carrier.
            ``(22) Total potential subscriber population.--The term 
        `total potential subscriber population' means, with respect to 
        any area and based on the most recent census data, the total 
        number of potential residential subscribers residing in 
        dwellings located in such area and potential nonresidential 
        subscribers maintaining permanent places of business located in 
        such area.
            ``(23) Underserved area.--The term `underserved area' 
        means--
                    ``(A) any census tract which is located in--
                            ``(i) an empowerment zone or enterprise 
                        community designated under section 1391, or
                            ``(ii) the District of Columbia Enterprise 
                        Zone established under section 1400, or
                    ``(B) any census tract--
                            ``(i) the poverty level of which is at 
                        least 30 percent (based on the most recent 
                        census data), and
                            ``(ii) the median family income of which 
                        does not exceed--
                                    ``(I) in the case of a census tract 
                                located in a metropolitan statistical 
                                area, 70 percent of the greater of the 
                                metropolitan area median family income 
                                or the statewide median family income, 
                                and
                                    ``(II) in the case of a census 
                                tract located in a nonmetropolitan 
                                statistical area, 70 percent of the 
                                nonmetropolitan statewide median family 
                                income.
            ``(24) Underserved subscriber.--The term `underserved 
        subscriber' means any residential subscriber residing in a 
        dwelling located in an underserved area or nonresidential 
        subscriber maintaining a permanent place of business located in 
        an underserved area.
    ``(f) Special Rules.--
            ``(1) Property used outside the united states, etc., not 
        qualified.--No expenditures shall be taken into account under 
        subsection (a)(1) with respect to the portion of the cost of 
        any property referred to in section 50(b) or with respect to 
        the portion of the cost of any property specified in an 
        election under section 179.
            ``(2) Basis reduction.--
                    ``(A) In general.--For purposes of this title, the 
                basis of any property shall be reduced by the portion 
                of the cost of such property taken into account under 
                subsection (a)(1).
                    ``(B) Ordinary income recapture.--For purposes of 
                section 1245, the amount of the deduction allowable 
                under subsection (a)(1) with respect to any property 
                which is of a character subject to the allowance for 
                depreciation shall be treated as a deduction allowed 
                for depreciation under section 167.
            ``(3) Coordination with section 38.--No credit shall be 
        allowed under section 38 with respect to any amount for which a 
        deduction is allowed under subsection (a)(1).''.
    (b) Special Rule for Mutual or Cooperative Telephone Companies.--
Section 512(b) of the Internal Revenue Code of 1986 (relating to 
modifications) is amended by adding at the end the following new 
paragraph:
            ``(20) Special rule for mutual or cooperative telephone 
        companies.--A mutual or cooperative telephone company which for 
        the taxable year satisfies the requirements of section 
        501(c)(12)(A) may elect to reduce its unrelated business 
        taxable income for such year, if any, by an amount that does 
        not exceed the qualified broadband expenditures which would be 
        taken into account under section 191 for such year by such 
        company if such company was not exempt from taxation. Any 
        amount which is allowed as a deduction under this paragraph 
        shall not be allowed as a deduction under section 191 and the 
        basis of any property to which this paragraph applies shall be 
        reduced under section 1016(a)(38).''.
    (c) Conforming Amendments.--
            (1) Section 263(a)(1) of the Internal Revenue Code of 1986 
        (relating to capital expenditures) is amended by striking 
        ``or'' at the end of subparagraph (J), by striking the period 
        at the end of subparagraph (K) and inserting ``, or'', and by 
        adding at the end the following new subparagraph:
                    ``(L) expenditures for which a deduction is allowed 
                under section 191.''.
            (2) Section 1016(a) of such Code is amended by striking 
        ``and'' at the end of paragraph (36), by striking the period at 
        the end of paragraph (37) and inserting ``, and'', and by 
        adding at the end the following new paragraph:
            ``(38) to the extent provided in section 191(f)(2).''.
            (3) The table of sections for part VI of subchapter A of 
        chapter 1 of such Code is amended by inserting after the item 
        relating to section 190 the following new item:

``Sec. 191. Broadband expenditures.''.
    (d) Designation of Census Tracts.--
            (1) In general.--The Secretary of the Treasury shall, not 
        later than 90 days after the date of the enactment of this Act, 
        designate and publish those census tracts meeting the criteria 
        described in paragraphs (16), (22), and (23) of section 191(e) 
        of the Internal Revenue Code of 1986 (as added by this 
        section). In making such designations, the Secretary of the 
        Treasury shall consult with such other departments and agencies 
        as the Secretary determines appropriate.
            (2) Saturated market.--
                    (A) In general.--For purposes of designating and 
                publishing those census tracts meeting the criteria 
                described in subsection (e)(19) of such section 191--
                            (i) the Secretary of the Treasury shall 
                        prescribe not later than 30 days after the date 
                        of the enactment of this Act the form upon 
                        which any provider which takes the position 
                        that it meets such criteria with respect to any 
                        census tract shall submit a list of such census 
                        tracts (and any other information required by 
                        the Secretary) not later than 60 days after the 
                        date of the publication of such form, and
                            (ii) the Secretary of the Treasury shall 
                        publish an aggregate list of such census tracts 
                        and the applicable providers not later than 30 
                        days after the last date such submissions are 
                        allowed under clause (i).
                    (B) No subsequent lists required.--The Secretary of 
                the Treasury shall not be required to publish any list 
                of census tracts meeting such criteria subsequent to 
                the list described in subparagraph (A)(ii).
    (e) Other Regulatory Matters.--
            (1) Prohibition.--No Federal or State agency or 
        instrumentality shall adopt regulations or ratemaking 
        procedures that would have the effect of eliminating or 
        reducing any deduction or portion thereof allowed under section 
        191 of the Internal Revenue Code of 1986 (as added by this 
        section) or otherwise subverting the purpose of this section.
            (2) Treasury regulatory authority.--It is the intent of 
        Congress in providing the election to deduct qualified 
        broadband expenditures under section 191 of the Internal 
        Revenue Code of 1986 (as added by this section) to provide 
        incentives for the purchase, installation, and connection of 
        equipment and facilities offering expanded broadband access to 
        the Internet for users in certain low income and rural areas of 
        the United States, as well as to residential users nationwide, 
        in a manner that maintains competitive neutrality among the 
        various classes of providers of broadband services. 
        Accordingly, the Secretary of the Treasury shall prescribe such 
        regulations as may be necessary or appropriate to carry out the 
        purposes of section 191 of such Code, including--
                    (A) regulations to determine how and when a 
                taxpayer that incurs qualified broadband expenditures 
                satisfies the requirements of section 191 of such Code 
                to provide broadband services, and
                    (B) regulations describing the information, 
                records, and data taxpayers are required to provide the 
                Secretary to substantiate compliance with the 
                requirements of section 191 of such Code.
    (f) Effective Date.--The amendments made by this section shall 
apply to expenditures incurred after the date of the enactment of this 
Act.

SEC. 102. CREDIT FOR OPERATIONAL EXPENSES FOR WIRELESS BROADBAND 
              NETWORKS SERVING RURAL OR UNDERSERVED AREAS.

    (a) In General.--Subpart D of part IV of subchapter A of chapter 1 
of the Internal Revenue Code of 1986 (relating to business related 
credits) is amended by adding at the end the following:

``SEC. 45O. CREDIT FOR OPERATIONAL EXPENSES FOR WIRELESS BROADBAND 
              NETWORKS SERVING RURAL OR UNDERSERVED AREAS.

    ``(a) General Rule.--For purposes of section 38, the wireless 
broadband operations credit determined under this section for the 
taxable year is the amount equal to the qualified operational expenses 
of the taxpayer for the taxable year.
    ``(b) Limitation.--The amount allowed as a credit under this 
section for a taxable year shall not exceed $10,000.
    ``(c) Qualified Operational Expenses.--For purposes of this 
section--
            ``(1) In general.--The term `qualified operational 
        expenses' means amounts paid or incurred to provide broadband 
        services in the United States to rural subscribers or 
        underserved subscribers through the radio transmission of 
        energy. Such amounts does not includes amounts properly 
        allocable to capital account.
            ``(2) Broadband services.--The term `broadband services' 
        means the transmission of signals at a rate of at least 
        5,000,000 bits per second to the subscriber and at least 
        1,000,000 bits per second from the subscriber.
            ``(3) Other definitions.--The terms `rural area', 
        `subscriber', `underserved area', have the meanings given the 
        respective term by 191(e).
    ``(d) Related Persons.--For purposes of this section, all persons 
treated as a single employer under subsection (a) or (b) of section 52 
shall be treated as a single taxpayer.
    ``(e) Denial of Double Benefit.--For purposes of this section, no 
amount taken into account as a deduction or credit under any other 
provision of this chapter shall be taken into account under this 
section.''.
    (b) Credit Treated as Business Credit.--Section 38(b) of such Code 
(relating to current year business credit) is amended by striking 
``plus'' at the end of paragraph (30), by striking the period at the 
end of paragraph (31), and inserting ``, plus'', and by adding at the 
end the following:
            ``(32) the wireless broadband operations credit determined 
        under section 45O(a).''.
    (c) Clerical Amendment.--The table of sections for subpart D of 
part IV of subchapter A of chapter 1 of such Code is amended by at the 
end the following:

``Sec. 45O. Credit for operational expenses for wireless broadband 
                            networks serving rural or underserved 
                            areas.''.
    (d) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after the date of the enactment of 
this Act.

                      TITLE II--NTIA GRANT PROGRAM

SEC. 201. ESTABLISHMENT OF NTIA GRANT PROGRAM FOR BROADBAND DEPLOYMENT 
              IN RURAL AND UNDERSERVED AREAS.

    The National Telecommunications and Information Administration 
Organization Act (47 U.S.C. 901 et seq.) is amended by adding at the 
end the following new section:

``SEC. 159. RURAL BROADBAND DEPLOYMENT GRANT PROGRAM.

    ``(a) Establishment.--The Secretary of Commerce, acting through the 
NTIA, shall establish a competitive program to provide an eligible unit 
of local government with a grant of not more than $75,000 to establish 
publicly-available networks of broadband service.
    ``(b) Eligibility.--In order to be eligible to receive a grant 
under this section, an eligible unit of local government shall prepare 
and submit an application at such time, in such form, and with such 
information and assurances as the Secretary may require, including an 
assurance that the eligible unit of local government will take such 
steps as are necessary to maintain the equipment and devices, including 
hiring and training personnel, to maintain the project for a 5-year 
period beginning on either the date when such network is established or 
1 year after the grant is received, whichever is earlier.
    ``(c) Definitions.--In this section:
            ``(1) Broadband service.--The term `broadband service' 
        means the transmission of signals at a rate of at least 
        5,000,000 bits per second to the subscriber and at least 
        1,000,000 bits per second from the subscriber.
            ``(2) Eligible unit of local government.--The term 
        `eligible unit of local government' means a unit of local 
        government that contains within its jurisdiction at least one 
        rural area or underserved area.
            ``(3) Rural area.--The term `rural area' means any census 
        tract which--
                    ``(A) is not within 10 miles of any incorporated or 
                census designated place containing more than 25,000 
                people, and
                    ``(B) is not within a county or county equivalent 
                which has an overall population density of more than 
                500 people per square mile of land.
            ``(4) Underserved area.--The term `underserved area' 
        means--
                    ``(A) any census tract which is located in--
                            ``(i) an empowerment zone or enterprise 
                        community designated under section 1391, or
                            ``(ii) the District of Columbia Enterprise 
                        Zone established under section 1400, or
                    ``(B) any census tract--
                            ``(i) the poverty level of which is at 
                        least 30 percent (based on the most recent 
                        census data), and
                            ``(ii) the median family income of which 
                        does not exceed--
                                    ``(I) in the case of a census tract 
                                located in a metropolitan statistical 
                                area, 70 percent of the greater of the 
                                metropolitan area median family income 
                                or the statewide median family income, 
                                and
                                    ``(II) in the case of a census 
                                tract located in a nonmetropolitan 
                                statistical area, 70 percent of the 
                                nonmetropolitan statewide median family 
                                income.
    ``(d) Report Requirement.--The Secretary of Commerce shall submit 
to Congress a report during each of fiscal years 2010 through 2014 on 
how funds were expended during the previous fiscal year.
    ``(e) Authorization of Appropriations.--For grants under this 
section, there are authorized to be appropriated to the Secretary of 
Commerce $15,000,000 for each of fiscal years 2009 through 2013.''.

  TITLE III--EXTENSION OF PUBLIC SAFETY INTEROPERABLE COMMUNICATIONS 
                             GRANT PROGRAM

SEC. 301. EXTENSION OF PUBLIC SAFETY INTEROPERABLE COMMUNICATIONS GRANT 
              PROGRAM.

    Section 3006(a)(2) of the Digital Television Transition and Public 
Safety Act of 2005 (Public Law 109-171; 120 Stat. 24) is amended by 
striking ``fiscal year 2010'' and inserting ``fiscal year 2013''.

                     TITLE IV--FARM BILL PROVISIONS

SEC. 401. EXPANSION OF 911 ACCESS.

    Section 315(b) of the Rural Electrification Act of 1936 (7 U.S.C. 
904e(b)) is amended by striking ``2002 through 2007'' and inserting 
``2009 through 2013''.

SEC. 402. ACCESS TO BROADBAND TELECOMMUNICATIONS SERVICES IN RURAL 
              AREAS.

    (a) Definitions.--Section 601(b) of the Rural Electrification Act 
of 1936 (7 U.S.C. 950bb(b)) is amended by striking paragraph (2) and 
inserting the following:
            ``(2) Eligible rural community.--The term `eligible rural 
        community' means any area of the United States that is not--
                    ``(A) included within the boundaries of any city, 
                town, borough, or village, whether incorporated or 
                unincorporated, with a population of more than 40,000 
                inhabitants; or
                    ``(B) the urbanized area contiguous and adjacent to 
                such a city or town.''.
    (b) Prioritization of Applications.--
            (1) Definition.--Section 601(b) of such Act (7 U.S.C. 
        950bb(b)), as amended by subsection (a) of this section, is 
        amended by adding at the end the following:
            ``(3) Incumbent service provider.--The term `incumbent 
        service provider' means, with respect to an application 
        submitted pursuant to this section, an entity that is providing 
        broadband service to at least 5 percent of the households in 
        the service area proposed in the application.''.
            (2) Priority based on number of incumbent service 
        providers.--Section 601(c) of such Act (7 U.S.C. 950bb(c)) is 
        amended by adding at the end the following:
            ``(3) Applications prioritized based on number of incumbent 
        service providers.--
                    ``(A) In general.--In making or guaranteeing loans 
                under paragraph (1), the Secretary shall give priority, 
                in the following order, to applications from eligible 
                rural communities that have--
                            ``(i) no incumbent service provider;
                            ``(ii) 1 incumbent service provider; or
                            ``(iii) 2 incumbent service providers who, 
                        together, serve not more than 25 percent of the 
                        households in the service area proposed in the 
                        application.
                    ``(B) Prohibitions.--In carrying out this section, 
                the Secretary may not--
                            ``(i) make a loan to an eligible community 
                        in which there are 3 or more incumbent service 
                        providers, unless--
                                    ``(I) the loan is to an incumbent 
                                service provider of the community;
                                    ``(II) the other providers in that 
                                community are notified of the 
                                application before approval by the 
                                Secretary, and have sufficient time to 
                                comment on the application; and
                                    ``(III) the application includes 
                                substantially increasing--
                                            ``(aa) the quality of 
                                        broadband service in the 
                                        community; and
                                            ``(bb) the provision of 
                                        broadband service to unserved 
                                        households inside and outside 
                                        the community; or
                            ``(ii) make a loan for new construction to 
                        any community in which more than 75 percent of 
                        the households may obtain affordable broadband 
                        service, on request, from at least 1 incumbent 
                        service provider.''.
    (c) Paperwork Reduction.--Section 601(c) of such Act (7 U.S.C. 
950bb(c)), as amended by subsection (b)(2) of this section, is amended 
by adding at the end the following:
            ``(4) Paperwork reduction.--The Secretary shall take steps 
        to reduce the cost and paperwork associated with applying for a 
        loan or loan guarantee under this section by first-time 
        applicants, particularly those who are smaller and start-up 
        Internet providers, including by providing for a new 
        application which shall maintain the ability of the Secretary 
        to make an analysis of the risk associated with the loan 
        involved.''.
    (d) Increase in Maximum Number of Subscriber Lines That May Be 
Served by an Eligible Entity.--Section 601(d)(3) of such Act (7 U.S.C. 
950bb(d)(3)) is amended by striking ``2'' and inserting ``10''.
    (e) Limitation on Funds to Entities With More Than 2 Percent of 
Subscriber Lines.--Section 601(d) of such Act (7 U.S.C. 950bb(d)) is 
amended by adding at the end the following:
            ``(4) Limitation on funds to entities with more than 2 
        percent of subscriber lines.--Not more than 25 percent of the 
        loans made under this section in a single fiscal year may be 
        approved for entities that serve more than 2 percent of the 
        telephone subscriber lines in the United States.''.
    (f) Loan Term Not To Exceed 35 Years.--Section 601(g)(2) of such 
Act (7 U.S.C. 950bb(g)(2)) is amended by striking ``not to exceed the 
useful life of the assets constructed, improved, or acquired with the 
proceeds of the loan or extension of credit.'' and inserting ``of such 
length, not exceeding 35 years, as the borrower may request, so long as 
the Secretary determines that the loan is adequately secured. In 
determining the term of a loan or loan guarantee, the Secretary shall 
consider whether the recipient is or would be serving an area that is 
not receiving broadband services.''
    (g) Adequacy of Security.--Section 601 of such Act (7 U.S.C. 950bb) 
is amended by redesignating subsections (h) through (k) as subsections 
(i) through (l), respectively, and inserting after subsection (g) the 
following:
    ``(h) Adequacy of Security.--The Secretary shall ensure that the 
type, amount, and method of security used to secure any loan or loan 
guarantee provided under this section is commensurate to the risk 
involved with the loan or loan guarantee, particularly when the loan or 
loan guarantee is issued to a financially healthy, strong, and stable 
entity. In determining the amount and method of security, the Secretary 
shall consider reducing the security in areas that do not have 
broadband service.''.
    (h) General Report on Program.--Section 601 of such Act (7 U.S.C. 
950bb), as amended by subsection (g) of this section, is amended by 
redesignating subsections (k) and (l) as subsections (l) and (m), 
respectively, and inserting after subsection (j) the following:
    ``(k) General Program Report.--Not later than December 1 of each 
year, the Secretary shall prepare and submit to the Committee on 
Agriculture of the House of Representatives and the Committee on 
Agriculture, Nutrition, and Forestry of the Senate a report that 
details for the preceding fiscal year--
            ``(1) the loans made under this section;
            ``(2) the communities served under this section;
            ``(3) the speed of the broadband service offered by 
        applicants for, and recipients of, loans or loan guarantees 
        under this section;
            ``(4) the type of services offered by the applicants and 
        recipients;
            ``(5) the length of time to approve applications submitted 
        pursuant to this section; and
            ``(6) the outreach efforts undertaken by the Department of 
        Agriculture to encourage persons in areas without broadband 
        service to submit applications pursuant to this section.''.
    (i) National Center for Rural Telecommunications Assessment.--
Section 601 of such Act (7 U.S.C. 950bb), as amended by subsections (g) 
and (h) of this section, is amended by redesignating subsections (l) 
and (m) as subsections (m) and (n), respectively, and inserting after 
subsection (k) the following:
    ``(l) National Center for Rural Telecommunications Assessment.--
            ``(1) Establishment of center.--The Secretary shall 
        designate a National Center for Rural Telecommunications 
        Assessment (in this subsection referred to as the `Center').
            ``(2) Criteria.--The Secretary shall use the following 
        criteria in making the designation:
                    ``(A) The Center must be an entity with a focus on 
                rural policy research and a minimum of 5 years 
                experience in rural telecommunications research and 
                assessment.
                    ``(B) The Center must be capable of assessing 
                broadband services in rural areas.
                    ``(C) The Center must have significant experience 
                with other rural economic development centers and 
                organizations in the assessment of rural policies and 
                formulation of policy solutions at the local, State, 
                and Federal level.
            ``(3) Board.--The management of the Center shall be vested 
        in a board of directors that is capable of oversight of the 
        duties set forth in paragraph (4).
            ``(4) Duties.--The Center shall--
                    ``(A) assess the effectiveness of programs provided 
                under subsection (d) in increasing broadband 
                penetration and purchase in rural areas, especially in 
                those rural communities identified by the Secretary as 
                having no service before award of a broadband loan or 
                loan guarantee under subsection (d);
                    ``(B) develop assessments of broadband availability 
                in rural areas, working with existing rural development 
                centers selected by the Center;
                    ``(C) identify policies and initiatives at the 
                local, State and Federal level that have increased 
                broadband penetration and purchase in rural areas;
                    ``(D) conduct a national study of rural households 
                and businesses focusing on the adoption of, barriers 
                to, and utilization of broadband services; and
                    ``(E) provide reports to the public on the 
                activities undertaken under this section.
            ``(5) Reporting requirements.--The Center shall report by 
        December 1 of each year to the Secretary its activities, the 
        results of its research, and any such information the Secretary 
        may request regarding the prior fiscal year. In reporting to 
        the Secretary the Center shall include the following:
                    ``(A) Assessments of the programs provided under 
                subsection (b).
                    ``(B) Annual assessments on broadband availability 
                in rural areas under consideration by the Center.
                    ``(C) Annual assessments on the effects of the 
                policy initiatives identified in paragraph (2)(C).
                    ``(D) Results from the national study of rural 
                households and businesses conducted under paragraph 
                (4)(D).
            ``(6) Authorization of appropriations.--There are 
        authorized to be appropriated to the Secretary to carry out 
        this subsection not more than $1,000,000 for each of the fiscal 
        years 2009 through 2013.''.
    (j) Funding.--Section 601(m) of such Act (7 U.S.C. 950bb(l)) as so 
redesignated by subsections (g) through (i) of this section, is 
amended--
            (1) by striking paragraph (1);
            (2) by redesignating paragraphs (2), (3), and (4) as 
        paragraphs (1), (2), and (3), respectively;
            (3) in paragraph (1)(B) (as so redesignated), by striking 
        ``2007'' and inserting ``2013'';
            (4) in paragraph (2) (as so redesignated), by striking 
        ``2003 through 2007'' and inserting ``2009 through 2013''; and
            (5) in paragraph (3) (as so redesignated), by adding at the 
        end the following:
                    ``(D) Eligible tribal communities.--Of the amounts 
                made available under subparagraph (A) for a fiscal 
                year, 10 percent shall be reserved for entities serving 
                eligible tribal communities.
                    ``(E) Unobligated amounts.--Any amounts in the 
                reserve established for eligible tribal communities for 
                a fiscal year under subparagraph (D) that are not 
                obligated by June 30 of the fiscal year shall be 
                available to the Secretary to make loans and loan 
                guarantees under this section to eligible entities in 
                any State, as determined by the Secretary.''.
    (k) Extension of Authority To Issue Loans.--Section 601(n) of such 
Act (7 U.S.C. 950bb(m)), as so redesignated by subsections (f) through 
(h) of this section, is amended by striking ``2007'' and inserting 
``2013''.

SEC. 403. COMMUNITY CONNECT GRANT PROGRAM.

    Title VI of the Rural Electrification Act of 1936 (7 U.S.C. 950bb) 
is amended by adding at the end the following:

``SEC. 602. COMMUNITY CONNECT GRANT PROGRAM.

    ``(a) Establishment.--The Secretary shall establish a grant program 
to be known as the `Community Connect Grant Program' to provide 
financial assistance to eligible applicants to provide broadband 
transmission service that fosters economic growth and delivers enhanced 
educational, health care, and public safety services.
    ``(b) Eligibility.--To be eligible for a grant under this section, 
the applicant must--
            ``(1) be legally organized as an incorporated tribal 
        organization, an Indian tribe, or tribal organization, as 
        defined in subsections (b) and (c) of section 4 of the Indian 
        Self-Determination and Education Assistance Act (25 U.S.C. 
        450b(b) and (c)), a State or local unit of government, or other 
        legal entity, including a cooperative, private corporation, or 
        limited liability company organized on a for-profit or not-for-
        profit basis;
            ``(2) have the legal capacity and authority to own and 
        operate broadband facilities as proposed in its application, to 
        enter into contracts, and to otherwise comply with applicable 
        Federal statutes and regulations; or
            ``(3) be in an eligible rural community (as defined in 
        section 601(b)(2) of the Rural Electrification Act of 1936).
    ``(c) Ineligible Grant Purposes.--A grant made under this section 
may not be used--
            ``(1) to finance the duplication of any broadband 
        transmission service provided by another entity; or
            ``(2) with respect to facilities, to provide local exchange 
        telecommunications service to any person or entity receiving 
        the service.
    ``(d) Priority.--In making grants under this section, the Secretary 
shall give priority to grants that will enhance community access to 
telemedicine and distance learning resources.
    ``(e) Matching Contributions.--
            ``(1) In general.--To be eligible to receive a grant under 
        subsection (a), a grant applicant shall provide a matching 
        contribution of at least 15 percent of the grant amount 
        requested, in funds and in-kind contributions in a proportion 
        to be determined by the Secretary.
            ``(2) Limitations.--
                    ``(A) Costs incurred by or on behalf of an 
                applicant, for facilities, installed equipment, or 
                other services rendered before submission of a 
                completed application shall not be considered to be for 
                an eligible grant purpose or a matching contribution.
                    ``(B) Any financial assistance from Federal sources 
                shall not be considered to be a matching contribution 
                for purposes of this section, unless there is a Federal 
                statutory exception specifically authorizing the 
                Federal financial assistance to be so considered.
    ``(f) Authorization of Appropriations.--There are authorized to be 
appropriated to the Secretary to carry out this section not more than 
$25,000,000 for each of the fiscal years 2009 through 2013.''.

SEC. 404. ASSISTANCE FOR RURAL PUBLIC TELEVISION STATIONS.

    Section 2333 of the Food, Agriculture, Conservation and Trade Act 
of 1990 (7 U.S.C. Sec. 950aaa-2) is amended by adding at the end the 
following:
    ``(j) Digital Service Transition Assistance for Public Television 
Stations.--The Secretary may provide grants under this section to 
noncommercial education television broadcast stations that serve rural 
areas for the purposes of developing digital facilities, equipment, and 
infrastructure to enhance digital services to rural areas.''.

SEC. 405. TELEMEDICINE AND DISTANCE LEARNING SERVICES IN RURAL AREAS.

    (a) Authorization of Appropriations.--Section 2335A of the Food, 
Agriculture, Conservation and Trade Act of 1990 (7 U.S.C. 950aaa-5) is 
amended by striking ``2007'' and inserting ``2013''.
    (b) Conforming Amendment.--Section 1(b) of Public Law 102-551 (7 
U.S.C. 950aaa note) is amended by striking ``2007'' and inserting 
``2013''.

SEC. 406. GUARANTEES FOR BONDS AND NOTES ISSUED FOR ELECTRIFICATION OR 
              TELEPHONE PURPOSES.

    Section 313A(f) of the Rural Electrification Act of 1936 (7 U.S.C. 
940c-1(f)) is amended by striking ``2007'' and inserting ``2013''.

SEC. 407. COMPREHENSIVE RURAL BROADBAND STRATEGY.

    Not later than 180 days after the date of the enactment of this 
Act, the Secretary of Agriculture shall submit to the President, the 
Committee on Agriculture of the House of Representatives, and the 
Committee on Agriculture, Nutrition, and Forestry of the Senate a 
report describing a comprehensive rural broadband strategy that 
includes--
            (1) recommendations--
                    (A) to promote interagency coordination of Federal 
                agencies in regards to policies, procedures, and 
                targeted resources, and to improve and streamline the 
                polices, programs, and services;
                    (B) to coordinate among Federal agencies regarding 
                existing rural broadband or rural initiatives that 
                could be of value to rural broadband development;
                    (C) to address both short- and long-term solutions 
                and needs assessments for a rapid build-out of rural 
                broadband solutions and applications for Federal, 
                State, regional, and local government policy makers;
                    (D) to identify how specific Federal agency 
                programs and resources can best respond to rural 
                broadband requirements and overcome obstacles that 
                currently impede rural broadband deployment; and
                    (E) to promote successful model deployments and 
                appropriate technologies being used in rural areas so 
                that State, regional, and local governments can benefit 
                from the cataloging and successes of other State, 
                regional, and local governments; and
            (2) a description of goals and timeframes to achieve the 
        strategic plans and visions identified in the report.

                      TITLE V--TELEHEALTH PROGRAMS

SEC. 601. TELEHEALTH PROGRAMS.

    (a) Telehealth Network and Telehealth Resource Centers Grant 
Programs.--Subsection (s) of section 330I of the Public Health Service 
Act (42 U.S.C. 254c-14) is amended to read as follows:
    ``(s) Authorization of Appropriations.--There are authorized to be 
appropriated to carry out this section--
            ``(1) for grants under subsection (d)(1), $5,000,000 for 
        each of fiscal years 2009 through 2013; and
            ``(2) for grants under subsection (d)(2), $5,000,000 for 
        each of fiscal years 2009 through 2013.''.
    (b) Telemedicine; Incentive Grants Regarding Coordination Among 
States.--Subsection (b) of section 330L of the Public Health Service 
Act (42 U.S.C. 245c-18) is amended to read as follows:
    ``(b) Authorization of Appropriations.--To carry out subsection 
(a), there is authorized to be appropriated $5,000,000 for each of 
fiscal years 2009 through 2013.''.
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