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107TH CONGRESS

1ST SESSION H. R. 2139

To authorize the Secretary of Agriculture to make loans for the development

of broadband services in rural areas.

IN THE HOUSE OF REPRESENTATIVES

JUNE 12, 2001

Mr. SMITH of Texas introduced the following bill; which was referred to the

Committee on Agriculture, and in addition to the Committee on Energy

and Commerce, 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 authorize the Secretary of Agriculture to make loans

for the development of broadband services in rural areas.

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled,

3 SECTION 1. SHORT TITLE.

4 This Act may be cited as the ‘‘Rural America

5 Broadband Deployment Act’’.

6 SEC. 2. FINDINGS.

7 The Congress finds that—
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1 (1) high-speed Internet access (broadband) will

2 benefit rural communities, agricultural producers,

3 and the American public by enabling—

4 (A) the improvement of productivity;

5 (B) the creation of new market outlets;

6 (C) the simplification of price discovery;

7 (D) the creation of risk management;

8 (E) forward pricing opportunities;

9 (2) according to a national survey, if United

10 States farmers had broadband access last year, their

11 savings in input costs and gains from greater mar12 keting efficiencies would have netted them at least

13 $5,800,000,000;

14 (3) as e-commerce becomes as revolutionary to

15 the United States economy as the telegraph, tele16 phone, and telefax has been, it is in the Nation’s

17 best overall interests not to leave rural communities

18 and agriculture behind the technological curve.

19 SEC. 3. BROADBAND LOAN PROGRAM.

20 (a) IN GENERAL.—

21 (1) LOAN AUTHORITY.—The Secretary of Agri22 culture (in this section referred to as the ‘‘Sec23 retary’’) shall make loans, to the extent of qualifying

24 applications for such loans, to eligible persons and

25 entities (including public entities) to provide or im-
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1 prove broadband service in rural areas where the

2 Secretary determines services are not adequate.

3 (2) REFINANCING OF EXISTING LOANS.—The

4 Secretary may make a loan under this section to re5 finance an outstanding loan if the Secretary deter6 mines the refinancing is necessary to provide or im7 prove broadband service in a rural area.

8 (b) LOAN TERMS AND CONDITIONS.—

9 (1) INTEREST RATE.—The interest rate

10 charged for a loan under this section shall be deter11 mined by the Secretary and shall approximate the

12 interest rate borne by securities issued by the Treas13 ury of the United States with comparable maturities.

14 (2) TERM OF LOAN.—The term of a loan under

15 this section shall not exceed the composite useful life

16 of the assets financed by the loan.

17 (3) FEASIBILITY AND SECURITY.—The Sec18 retary may not make a loan to a borrower under this

19 section unless the Secretary determines that the

20 borrower—

21 (A) can repay the loan in accordance with

22 the loan terms; and

23 (B) has provided sufficient collateral to se24 cure the loan.
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1 (4) OTHER LOAN TERMS.—The Secretary shall

2 prescribe such other terms and conditions for loans

3 made under this section as the Secretary deems ap4 propriate.

5 (c) LIMITATIONS ON AUTHORIZATION OF APPRO6 PRIATIONS.—To carry out this section, there are author7 ized to be appropriated to the Secretary $100,000,000 for

8 each of fiscal years 2002 through 2004.

9 (d) DEFINITIONS.—In this section:

10 (1) BROADBAND SERVICE.—The term

11 ‘‘broadband service’’ means providing an information

12 rate equivalent to at least 200 kilobits per second in

13 the connection from the provider to the consumer

14 and from the consumer to the provider.

15 (2) RURAL AREA.—The term ‘‘rural area’’

16 means any area of the United States not included

17 within the boundaries of any incorporated or unin18 corporated city, village, or borough having a popu19 lation in excess of 50,000 inhabitants.

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