Union Calendar No. 309
106TH CONGRESS
2D SESSION
H. R. 3615
[Report No. 106–508, Parts I and II]
A BILL
To amend the Rural Electrification Act of 1936 to
ensure improved access to the signals of local tel-
evision stations by multichannel video providers
to all households which desire such service in
unserved and underserved rural areas by Decem-
ber 31, 2006.
APRIL 6, 2000
Reported from the Committee on Commerce with an
amendment, committed to the Committee of the Whole
House on the State of the Union, and ordered to be
printed
IB
Union Calendar No. 309
106TH CONGRESS
2D SESSION
H. R. 3615
[Report No. 106–508, Parts I and II]
To amend the Rural Electrification Act of 1936 to ensure improved access
to the signals of local television stations by multichannel video providers
to all households which desire such service in unserved and underserved
rural areas by December 31, 2006.
IN THE HOUSE OF REPRESENTATIVES
FEBRUARY 10, 2000
Mr. GOODLATTE (for himself, Mr. BOUCHER, Mr. BAKER, Mrs. EMERSON,
Mrs. CAPPS, Mrs. BONO, Mr. OBERSTAR, Mr. EWING, Mr. GILCHREST,
Mr. METCALF, Mr. QUINN, Mr. BASS, Mr. LATHAM, Mr. KILDEE, Mr.
PHELPS, Mr. MCINNIS, Mr. RAHALL, Mr. BUYER, Mr. WATKINS, Mr.
FROST, Mr. BALDACCI, Mr. GOODE, Mr. PETERSON of Minnesota, Mr.
HINCHEY, Mr. BOYD, Mr. WALDEN of Oregon, Mr. OLVER, Mr. FLETCH-
ER, Mr. COLLINS, Mr. THORNBERRY, Mrs. CUBIN, Mr. NETHERCUTT,
Mr. WICKER, Mr. LAHOOD, Mr. BOEHLERT, Mr. GOODLING, Mr.
HERGER, Mr. NUSSLE, Mr. RADANOVICH, Mr. EHRLICH, Mr. HASTINGS
of Washington, Mr. THUNE, Mr. COOKSEY, Mr. HILLEARY, Mrs.
FOWLER, Mr. BONILLA, Mr. BALLENGER, Mr. SKEEN, Mr. SHIMKUS,
Mr. PICKERING, Mr. ADERHOLT, Mr. SHERWOOD, Mr. UPTON, Mr.
HAYES, Mr. PETERSON of Pennsylvania, Mr. SMITH of Texas, Mr.
VITTER, Mr. JENKINS, Mr. TAUZIN, Mr. RILEY, Mr. CANADY of Florida,
Mr. BARTLETT of Maryland, Mr. ISAKSON, Mr. CHAMBLISS, Mr. BAR-
RETT of Nebraska, Mr. GANSKE, Mr. BISHOP, Mr. THOMAS, Mr. OXLEY,
Mr. GOSS, Mr. JONES of North Carolina, Mr. DOOLITTLE, Mr. POMBO,
Mr. WAMP, Mr. DUNCAN, Mr. NORWOOD, Mrs. CHENOWETH-HAGE, Mr.
DAVIS of Virginia, Mr. DICKEY, Mr. EHLERS, Mr. LEWIS of Kentucky,
Mr. WELLER, Mr. FOLEY, Mr. HUTCHINSON, Mr. SMITH of Michigan,
Mr. GEKAS, Mr. HOUGHTON, Mr. REYNOLDS, Mr. PORTMAN, Mr. TRAFI-
CANT, Mr. SCHAFFER, Mr. THOMPSON of California, Mr. MINGE, Mrs.
CLAYTON, Mr. SHOWS, Mr. SISISKY, Mr. BRYANT, Mr. WALSH, Mr.
MCHUGH, Mrs. JOHNSON of Connecticut, Mr. BEREUTER, Mr. ROGERS,
Mr. FARR of California, Mr. KIND, and Mr. HILL of Montana) intro-
duced the following bill; which was referred to the Committee on Agri-
HR 3615 RH2
culture, and in addition to the Committees on Commerce, and the Judici-
ary, 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
MARCH 1, 2000
Additional sponsors: Mr. SANDLIN, Mr. POMEROY, Mr. BERRY, Mr. MORAN
of Kansas, Mr. MORAN of Virginia, Mr. CRAMER, Mr. LUCAS of Okla-
homa, Mr. GUTKNECHT, Mr. SIMPSON, Mr. STENHOLM, Mr. HOLDEN,
Mr. BOSWELL, Mr. KLINK, and Mr. COBLE
MARCH 1, 2000
Reported from the Committee on Agriculture with an amendment
[Strike out all after the enacting clause and insert the part printed in italic]
MARCH 1, 2000
Referral to the Committees on Commerce and the Judiciary extended for a
period ending not later than March 31, 2000
MARCH 31, 2000
The Committee on the Judiciary discharged
MARCH 31, 2000
Referral to the Committee on Commerce extended for a period ending not
later than April 4, 2000
APRIL 4, 2000
Referral to the Committee on Commerce extended for a period ending not
later than April 5, 2000
APRIL 5, 2000
Referral to the Committee on Commerce extended for a period ending not
later than April 6, 2000
APRIL 6, 2000
Additional sponsors: Mr. UDALL of Colorado, Mr. EDWARDS, Mr. DEFAZIO,
Mr. RODRIGUEZ, and Mr. DEAL of Georgia
APRIL 6, 2000
Reported from the Committee on Commerce with an amendment, committed
to the Committee of the Whole House on the State of the Union, and
ordered to be printed
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[Strike out all after the enacting clause and insert the part printed in boldface roman]
[For text of introduced bill, see copy of bill as introduced on February 10, 2000]
A BILL
To amend the Rural Electrification Act of 1936 to ensure
improved access to the signals of local television stations
by multichannel video providers to all households which
desire such service in unserved and underserved rural
areas by December 31, 2006.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ‘‘Rural Local Broadcast
Signal Act’’.
SEC. 2. FINDINGS.
Congress makes the following findings:
(1) In 1936, most of the rural United States did
not have access to electrical service enjoyed by the rest
of the United States, and this lack of electrical service
inhibited economic development in the rural areas of
the United States.
(2) In response to this lack of service, Congress
enacted the Rural Electrification Act of 1936 (also
known as the Norris-Rayburn Rural Electrification
Act) which established the Rural Electrification Ad-
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ministration to ensure that all Americans have access
to electrical service and to promote rural development.
(3) The program under the Rural Electrification
Act of 1936 has successfully brought electricity to all
parts of the rural United States and has stimulated
rural development throughout the United States.
(4) In 1949, most of the rural United States did
not have access to telephone service enjoyed by the rest
of the United States, and this lack of telephone service
inhibited economic development in the rural areas of
the United States.
(5) In response to this lack of service, Congress
amended the Rural Electrification Act of 1936 to as-
sure that the rural United States has access to tele-
communications services, including telephone services,
distance learning, and telemedicine in order to pro-
mote rural development.
(6) The programs under these amendments have
successfully brought telecommunications to all parts
of the United States and has stimulated rural devel-
opment throughout the United States.
(7) Public Law 93–32 amended the Rural Elec-
trification Act of 1936 to establish a revolving fund
for insured and guaranteed loans.
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(8) The reorganization of the Department of Ag-
riculture by Public Law 103–354 created the Rural
Utilities Service (RUS) within the Department of Ag-
riculture and assigned it the responsibility for admin-
istering programs under the Rural Electrification Act
of 1936.
(9) The Rural Utilities Service now manages a
portfolio of federally-guaranteed and direct loans in
excess of $42,000,000,000.
(10) The Rural Utilities Service has granted
loans for the purpose of telecommunications services
to more than 800 borrowers, including telephone and
electricity cooperatives, in all States of the United
States.
(11) Local television coverage is vitally impor-
tant for rural development efforts.
(12) Local television programming broadcasts
crop reports, local news, weather reports, public serv-
ice announcements, and advertisements by local busi-
nesses, all of which are important for rural develop-
ment.
(13) In today’s age of modern communications,
rural communities often receive the majority of their
information from satellite platforms.
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(14) The rest of the United States, including
most of the rural United States, is not able to receive
local television signals via satellite.
(15) Without access to local television signals,
the development of the rural United States is greatly
inhibited.
(16) Just as important public purposes were
served by bringing electricity to the rural United
States and then by bringing telephone service to the
rural United States, so the United States would be
served by ensuring that the rural United States can
receive local television signals via satellite.
(17) It is in the public interest that the Rural
Utilities Service of the Department of Agriculture uti-
lize existing and new loan guarantee programs to
promote rural development by ensuring that the rural
United States has access to the signals of local tele-
vision stations by multichannel video providers.
SEC. 3. RURAL LOCAL TELEVISION SIGNALS.
The Rural Electrification Act of 1936 (7 U.S.C. 901
et seq.) is amended by adding at the end the following:
‘‘TITLE VI—RURAL LOCAL
TELEVISION SIGNALS
‘‘SEC. 601. DEFINITIONS.
‘‘In this title:
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‘‘(1) 
ADMINISTRATOR.—The 
term 
‘Adminis-
trator’ means the Administrator of the Rural Utilities
Service.
‘‘(2) AFFILIATE.—The term ‘affiliate’ means any
person or entity that controls, or is controlled by, or
is under common control with, another person or en-
tity.
‘‘(3) BORROWER.—The term ‘borrower’ means
any person or entity receiving a loan guarantee
under this title.
‘‘(4) COST.—
‘‘(A) IN GENERAL.—The term ‘cost’ means
the estimated long-term cost to the Government
of a loan guarantee or modification thereof, cal-
culated on a net present value basis, excluding
administrative costs and any incidental effects
on governmental receipts or outlays.
‘‘(B) LOAN GUARANTEES.—For purposes of
this paragraph the cost of a loan guarantee—
‘‘(i) shall be the net present value, at
the time when the guaranteed loan is dis-
bursed, of the estimated cash flows of—
‘‘(I) payments by the Government
to cover defaults and delinquencies, in-
terest subsidies, or other payments; and
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‘‘(II) payments to the Govern-
ment, including origination and other
fees, penalties, and recoveries; and
‘‘(ii) shall include the effects of changes
in loan terms resulting from the exercise by
the guaranteed lender of an option included
in the loan guarantee contract, or by the
borrower of an option included in the guar-
anteed loan contract.
‘‘(C) COST OF MODIFICATION.—The cost of
the modification shall be the difference between
the current estimate of the net present value of
the remaining cash flows under the terms of a
loan guarantee contract, and the current esti-
mate of the net present value of the remaining
cash flows under the terms of the contract, as
modified.
‘‘(D) DISCOUNT RATE.—In estimating net
present value, the discount rate shall be the aver-
age interest rate on marketable Treasury securi-
ties of similar maturity to the cash flows of the
guarantee for which the estimate is being made.
‘‘(E) FISCAL
YEAR
ASSUMPTIONS.—When
funds of a loan guarantee under this title are ob-
ligated, the estimated cost shall be based on the
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current assumptions, adjusted to incorporate the
terms of the loan contract, for the fiscal year in
which the funds are obligated.
‘‘(5) CURRENT.—The term ‘current’ has the
meaning given that term in section 250(c)(9) of the
Balanced Budget and Emergency Deficit Control Act
of 1985.
‘‘(6) DESIGNATED
MARKET
AREA.—The term
‘designated market area’ has the meaning given that
term in section 122(j) of title 17, United States Code.
‘‘(7) LOAN GUARANTEE.—The term ‘loan guar-
antee’ means any guarantee, insurance, or other
pledge with respect to the payment of all or part of
the principal or interest on any debt obligation of a
non-Federal borrower to the Federal Financing Bank
or a non-Federal lender, but does not include the in-
surance of deposits, shares, or other withdrawable ac-
counts in financial institutions.
‘‘(8) MODIFICATION.—The term ‘modification’
means any Government action that alters the esti-
mated cost of an outstanding loan guarantee (or loan
guarantee commitment) from the current estimate of
cash flows, including the sale of loan assets, with or
without recourse, and the purchase of guaranteed
loans.
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‘‘(9) COMMON TERMS.—Except as provided in
paragraphs (1) through (9), any term used in this
title that is defined in the Communications Act of
1934 (47 U.S.C. 151 et seq.) has the meaning given
the term in that Act.
‘‘SEC. 602. LOAN GUARANTEES.
‘‘(a) PURPOSE.—The purpose of this title is to enable
the Administrator to provide such loan guarantees as are
necessary to ensure improved access to the signals of local
television stations by multichannel video providers to all
households which desire such service in unserved and under-
served rural markets by December 31, 2006.
‘‘(b) ASSISTANCE TO BORROWERS.—Subject to the ap-
propriations limitation under subsection (c)(2), the Admin-
istrator may provide loan guarantees to borrowers to fi-
nance projects to provide local television broadcast signals
by providers of multichannel video services including direct
broadcast satellite licensees and licensees of multichannel
multipoint distribution systems, to areas that do not receive
local television broadcast signals over commercial for-profit
direct-to-home satellite distribution systems. A borrower
that receives a loan guarantee under this title may not
transfer any part of the proceeds of the monies from the
loans guaranteed under this program to an affiliate of the
borrower.
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‘‘(c) UNDERWRITING CRITERIA; PREREQUISITES.—
‘‘(1) IN GENERAL.—The Administrator shall ad-
minister the underwriting criteria developed under
subsection (f)(1) to determine which loans are eligible
for a guarantee under this title.
‘‘(2) AUTHORITY TO MAKE LOAN GUARANTEES.—
The Administrator shall be authorized to guarantee
loans under this title only to the extent provided for
in advance by appropriations Acts.
‘‘(3) PREREQUISITES.—In addition to meeting
the underwriting criteria under paragraph (1), a
loan is not eligible for a loan guarantee under this
title unless—
‘‘(A) the loan is made to finance the acqui-
sition, improvement, enhancement, construction,
deployment, launch, or rehabilitation of the
means, including spectrum rights, by which local
television broadcast signals will be delivered to
an area not receiving such signals over commer-
cial for-profit direct-to-home satellite distribu-
tion systems;
‘‘(B) the proceeds of the loan will not be
used for operating expenses;
‘‘(C) the total amount of all such loans may
not exceed in the aggregate $1,250,000,000;
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‘‘(D) the loan does not exceed $100,000,000,
except that 1 loan under this title may exceed
$100,000,000, but shall not exceed $625,000,000;
‘‘(E) the loan bears interest and penalties
which, in the Administrator’s judgment, are not
unreasonable, taking into consideration the pre-
vailing interest rates and customary fees in-
curred under similar obligations in the private
capital market; and
‘‘(F) the Administrator determines that tak-
ing into account the practices of the private cap-
ital markets with respect to the financing of
similar projects, the security of the loan is ade-
quate.
‘‘(4) ADDITIONAL CRITERIA.—In addition to the
requirements of paragraphs (1), (2), and (3), a loan
for which a guarantee is sought under this title shall
meet any additional criteria promulgated under sub-
section (f)(1).
‘‘(d) ADDITIONAL
REQUIREMENTS.—The Adminis-
trator may not make a loan guarantee under this title
unless—
‘‘(1) repayment of the loan is required to be
made within a term of the lesser of—
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‘‘(A) 25 years from the date of its execution;
or
‘‘(B) the useful life of the primary assets
used in the delivery of relevant signals;
‘‘(2) the Administrator has been given the assur-
ances and documentation necessary to review and ap-
prove the guaranteed loans; and
‘‘(3) the Administrator makes a determination
in writing that—
‘‘(A) the applicant has given reasonable as-
surances that the assets, facilities, or equipment
will be utilized economically and efficiently;
‘‘(B) necessary and sufficient regulatory ap-
provals, spectrum rights, and delivery permis-
sions have been received or will be obtained by
project participants to assure the financial feasi-
bility of the project; and
‘‘(C) repayment of the loan can reasonably
be expected, including the use of an appropriate
combination of credit risk premiums and collat-
eral offered by the applicant to protect the Fed-
eral Government.
‘‘(e) APPROVAL OF NTIA REQUIRED.—
‘‘(1) IN GENERAL.—The Administrator may not
issue a loan guarantee under this title unless the Na-
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tional Telecommunications and Information Admin-
istration consults with the Administrator and certifies
that the issuance of the loan guarantee is consistent
with subsection (a).
‘‘(2) CERTIFICATION.—The Administrator shall
provide the appropriate information on each loan
guarantee application recommended by the Adminis-
trator to the National Telecommunications and Infor-
mation Administration for certification. If the Na-
tional Telecommunications and Information Admin-
istration fails to make the required determination
within 90 days after receiving the information from
the Administrator with respect to a particular loan
guarantee application, the certification shall be
deemed to have been granted.
‘‘(f) REQUIREMENTS.—
‘‘(1) IN
GENERAL.—Not later than 180 days
after the date of enactment of this title, the Adminis-
trator shall consult with an appropriate independent
consultant, including a public accounting firm, to de-
velop underwriting criteria relating to the issuance of
loan guarantees, appropriate collateral and cash flow
levels for the types of loan guarantees that might be
issued under this title, and such other matters as the
Administrator determines appropriate.
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‘‘(2) AUTHORITY OF ADMINISTRATOR.—In lieu of
or in combination with appropriations of budget au-
thority to cover the costs of loan guarantees as re-
quired under section 504(b)(1) of the Federal Credit
Reform Act of 1990, the Administrator may accept on
behalf of an applicant for assistance under this title
a commitment from a non-Federal source to fund in
whole or in part the credit risk premiums with re-
spect to the applicant’s loan. The aggregate of appro-
priations of budget authority and credit risk pre-
miums described in this paragraph with respect to a
loan guarantee may not be less than the cost of that
loan guarantee.
‘‘(3) CREDIT RISK PREMIUM AMOUNT.—The Ad-
ministrator shall determine the amount required for
credit risk premiums under this subsection on the
basis of—
‘‘(A) the circumstances of the applicant, in-
cluding the amount of collateral offered;
‘‘(B) the proposed schedule of loan disburse-
ments;
‘‘(C) the borrower’s business plans for pro-
viding service;
‘‘(D) financial commitment from the broad-
cast signal provider; and
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‘‘(E) any other factors the Administrator
considers relevant.
‘‘(4) PAYMENT OF PREMIUMS.—Credit risk pre-
miums under this subsection shall be paid to an ac-
count established in the Treasury which shall accrue
interest and such interest shall be retained by the ac-
count. In addition, the Administrator may accept
credit risk premiums in the form of letters of credit
or other forms of non-cash instruments, which shall
not accrue interest. As obligations attached to a co-
hort of loans established under paragraph (5) are
being satisfied, credit risk premiums for the cohort,
and interest accrued thereon, which are not required
to mitigate losses shall be returned to the original
source on a pro rata basis.
‘‘(5) COHORTS OF LOANS.—In order to maintain
sufficient balances of credit risk premiums to ade-
quately protect the Federal Government from risk of
default, while minimizing the length of time the Gov-
ernment retains possession of those balances, the Ad-
ministrator in consultation with the Office of Man-
agement and Budget shall establish cohorts of loans.
‘‘(g) CONDITIONS OF ASSISTANCE.—A borrower shall
agree to such terms and conditions as are sufficient, in the
judgment of the Administrator to ensure that, as long as
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any principal or interest is due and payable on such obliga-
tion, the borrower—
‘‘(1) will maintain assets, equipment, facilities,
and operations on a continuing basis;
‘‘(2) will not make any discretionary dividend
payments that reduce the ability to repay obligations
incurred under this section; and
‘‘(3) will remain sufficiently capitalized.
‘‘(h) LIEN ON INTERESTS IN ASSETS.—Upon pro-
viding a loan guarantee to a borrower under this title, the
Administrator shall have liens which shall be superior to
all other liens on assets of the borrower equal to the unpaid
balance of the loan subject to such guarantee.
‘‘(i) SUBORDINATION OR SHARING OF LIENS.—Not-
withstanding subsection (h), at the request of a private lend-
er providing financing to the borrower for the purposes set
forth in subsection (a), the Administrator may offer—
‘‘(1) to share the Government’s lien on the bor-
rower’s assets; or
‘‘(2) to subordinate the Government’s lien on the
borrower’s assets.
‘‘(j) PERFECTED INTEREST.—The Administrator and
the lender shall have a perfected security interest in those
assets of the borrower fully sufficient to protect the Adminis-
trator and the lender.
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‘‘(k) INSURANCE POLICIES.—In accordance with prac-
tices of private lenders, as determined by the Administrator,
the borrower shall obtain, at its expense, insurance suffi-
cient to protect the interests of the Federal Government, as
determined by the Administrator.
‘‘(l) AUTHORIZATION OF APPROPRIATIONS.—For the
additional costs of the loans guaranteed under this title, in-
cluding the cost of modifying the loans as defined in section
502 of the Congressional Budget Act of 1974 (2 U.S.C.
661(a)), there are authorized to be appropriated for fiscal
years 2000 through 2006, such amounts as may be nec-
essary. In addition there are authorized to be appropriated
such sums as may be necessary to administer this title. Any
amounts appropriated under this subsection shall remain
available until expended.
‘‘SEC. 603. ADMINISTRATION OF LOAN GUARANTEES.
‘‘(a) APPLICATIONS.—The Administrator shall pre-
scribe the form and contents for an application for a loan
guarantee under section 602.
‘‘(b) ASSIGNMENT OF LOAN GUARANTEES.—The holder
of a loan guaranteed under this title may assign the loan
guarantee in whole or in part, subject to such requirements
as the Administrator may prescribe.
‘‘(c) MODIFICATIONS.—The Administrator may ap-
prove the modification of any term or condition of a loan
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guarantee including the rate of interest, time of payment
of interest or principal, or security requirements, if—
‘‘(1) the Administrator finds in writing that—
‘‘(A) the modification is equitable and is in
the overall best interests of the United States;
‘‘(B) consent has been obtained from the
borrower and the lender;
‘‘(C) the modification is consistent with the
objective underwriting criteria developed in con-
sultation with an appropriate independent con-
sultant, including a public accounting firm,
under section 602(f);
‘‘(D) the modification does not adversely af-
fect the Federal Government’s interest in the en-
tity’s assets or loan collateral; and
‘‘(E) the modification does not adversely af-
fect the entity’s ability to repay the loan; and
‘‘(2) the National Telecommunications and In-
formation Administration does not object to the modi-
fication on the ground that it is inconsistent with the
certification under section 602(e).
‘‘(d) PRIORITY MARKETS.—
‘‘(1) IN
GENERAL.—To the maximum extent
practicable, the Administrator shall give priority to
projects which serve the most underserved rural mar-
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kets, as determined by the Administrator. In making
prioritization determinations, the Administrator shall
consider prevailing market conditions, feasibility of
providing service, population, terrain, and other fac-
tors the Administrator determines appropriate.
‘‘(2) PRIORITY RELATING TO CONSUMER COSTS
AND
SEPARATE
TIER
OF
SIGNALS.—The Adminis-
trator shall give priority to projects that—
‘‘(A) offer a separate tier of local broadcast
signals; and
‘‘(B) provide lower projected costs to con-
sumers of such separate tier.
‘‘(3) PERFORMANCE
SCHEDULES.—Applicants
under this section shall enter into stipulated perform-
ance schedules with the Administrator.
‘‘(4) PENALTY.—In addition to any other au-
thority of the Administrator, the Administrator may
assess a borrower a penalty not to exceed 3 times the
interest due on the guaranteed loan, if the borrower
fails to meet its stipulated performance schedule. The
penalty shall be paid to the account established under
section 602.
‘‘(5) LIMITATION ON CONSIDERATION OF MOST
POPULATED
AREAS.—The Administrator shall not
provide a loan guarantee for a project that is pri-
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marily designed to serve the 40 most populated des-
ignated market areas and shall take into consider-
ation the importance of serving rural markets that
are not likely to be otherwise offered service under sec-
tion 122 of title 17, United States Code, except
through the loan guarantee program under this title.
‘‘(e) COMPLIANCE.—The Administrator shall enforce
compliance by an applicant and any other party to the loan
guarantee for whose benefit assistance is intended, with the
provisions of this title, regulations issued hereunder, and
the terms and conditions of the loan guarantee, including
through regular periodic inspections and audits.
‘‘(f) COMMERCIAL VALIDITY.—For purposes of claims
by any party other than the Administrator, a loan guar-
antee shall be conclusive evidence that the underlying obli-
gation is in compliance with the provisions of the title, and
that such obligation has been approved and is legal as to
principal, interest, and other terms. Such a guarantee shall
be valid and incontestable in the hands of a holder thereof,
including the original lender or any other holder, as of the
date when the Administrator granted the application there-
fore, except as to fraud or material misrepresentation by
such holder.
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‘‘(g) DEFAULTS.—The Administrator shall prescribe
regulations governing a default on a loan guaranteed under
this title.
‘‘(h) RIGHTS OF THE ADMINISTRATOR.—
‘‘(1) SUBROGATION.—If the Administrator au-
thorizes payment to a holder, or a holder’s agent,
under subsection (g) in connection with a loan guar-
antee made under section 602, the Administrator
shall be subrogated to all of the rights of the holder
with respect to the obligor under the loan.
‘‘(2) DISPOSITION OF PROPERTY.—The Adminis-
trator may complete, recondition, reconstruct, ren-
ovate, repair, maintain, operate, rent, sell, or other-
wise dispose of any property or other interests ob-
tained under this title in a manner that maximizes
taxpayer return and is consistent with the public con-
venience and necessity.
‘‘(i) ACTION AGAINST OBLIGOR.—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 title. The holder of a guar-
antee shall make available to the Administrator all records
and evidence necessary to prosecute the civil action. The
Administrator may accept property in full or partial satis-
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faction of any sums owed as a result of default. If the Ad-
ministrator receives, through the sale or other disposition
of such property, an amount greater than the aggregate of—
‘‘(1) the amount paid to the holder of a guar-
antee under subsection (g); and
‘‘(2) any other cost to the United States of rem-
edying the default, the Administrator shall pay such
excess to the obligor.
‘‘(j) BREACH OF CONDITIONS.—The Attorney General
shall commence a civil action in a court of appropriate ju-
risdiction to enjoin any activity which the Administrator
finds is in violation of this title, regulations issued here-
under, or any conditions which were duly agreed to, and
to secure any other appropriate relief, including relief
against any affiliate of the borrower.
‘‘(k) ATTACHMENT.—No attachment or execution may
be issued against the Administrator or any property in the
control of the Administrator prior to the entry of final judg-
ment to such effect in any State, Federal, or other court.
‘‘(l) INVESTIGATION CHARGE AND FEES.—
‘‘(1) APPRAISAL FEE.—The Administrator may
charge and collect from an applicant a reasonable fee
for appraisal for the value of the equipment or facili-
ties for which the loan guarantee is sought, and for
making necessary determinations and findings. The
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fee may not, in the aggregate, be more than one-half
of one percent of the principal amount of the obliga-
tion.
‘‘(2) LOAN
ORIGINATION
FEE.—The Adminis-
trator may charge a loan origination fee.
‘‘(3) USE OF FEES.—Fees collected pursuant to
this subsection shall be credited to the account which
administers the loan guarantee program under this
title. Such fees shall be made available to the Admin-
istrator without further appropriation and shall re-
main available until expended.
‘‘(m) ANNUAL AUDIT.—The Comptroller General of the
United States shall annually audit the administration of
this title and report the results of the audit to the Committee
on Agriculture, Nutrition, and Forestry of the Senate and
the Committee on Agriculture of the House of Representa-
tives.
‘‘(n) INDEMNIFICATION.—An affiliate of the borrower
shall indemnify the Government for any losses it incurs as
a result of—
‘‘(1) a judgment against the borrower;
‘‘(2) any breach by the borrower of its obliga-
tions under the loan guarantee agreement;
‘‘(3) any violation of the provisions of this title
by the borrower;
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‘‘(4) any penalties incurred by the borrower for
any reason, including the violation of the stipulated
performance; and
‘‘(5) any other circumstances that the Adminis-
trator determines to be appropriate.
‘‘(o) SUNSET.—The Administrator may not approve a
loan guarantee under this title after December 31, 2006.
‘‘SEC. 
604. 
RETRANSMISSION 
OF 
LOCAL 
TELEVISION
BROADCAST STATIONS.
‘‘A borrower shall be subject to applicable rights, obli-
gations, and limitations of title 17, United States Code. If
a local broadcast station requests carriage of its signal and
is located in a market not served by a satellite carrier pro-
viding service under a statutory license under section 122
of title 17, United States Code, the borrower shall carry
the signal of that station without charge and shall be subject
to the applicable rights, obligations, and limitations of sec-
tions 338, 614, and 615 of the Communications Act of
1934.’’.
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 con-
tents of this Act is as follows:
Sec. 1. Short title; table of contents.
Sec. 2. Purpose.
Sec. 3. Rural television loan guarantee board.
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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 opera-
tors.
Sec. 8. Annual audit.
Sec. 9. Exemption from must carry requirements.
Sec. 10. Additional availability of broadcast signals in rural
areas.
Sec. 11. Prevention of interference to satellite services apply-
ing for rural loan guarantees.
Sec. 12. Improved cellular service in rural areas.
Sec. 13. Technical amendment.
Sec. 14. Definitions.
Sec. 15. Authorizations of appropriations.
Sec. 16. Sunset.
SEC. 2. PURPOSE.
The purpose of this Act is to facilitate ac-
cess, on a technologically neutral basis and by
December 31, 2006, to signals of local tele-
vision stations for households located in
unserved 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 fol-
lowing members:
(A) The Secretary of the Treasury,
or the designee of the Secretary.
(B) The Secretary of Agriculture,
or the designee of the Secretary.
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(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 appoint-
ment by the President, by and with the
advice and consent of the Senate.
(c) FUNCTIONS OF THE BOARD.—
(1) IN GENERAL.—The Board shall de-
termine whether or not to approve loan
guarantees under this Act. The Board
shall make such determinations con-
sistent 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 depart-
ments and agencies of the Federal
Government as the Board considers
appropriate, including the Depart-
ment of Commerce, the Department
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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 Commu-
nications Commission, the Federal
Trade Commission, and the National
Aeronautics and Space Administra-
tion.
(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 GUARAN-
TEES.—Subject to the provisions of this sec-
tion and consistent with the purpose of this
Act, the Board may approve loan guarantees
under this Act.
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(b) REGULATIONS.—
(1) 
REQUIREMENTS.—The 
Adminis-
trator (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 ap-
propriated in a bill signed into law.
(2) ELEMENTS.—The regulations pre-
scribed under paragraph (1) shall—
(A) set forth the form of any ap-
plication 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 applica-
tions;
(C) 
provide 
appropriate 
safe-
guards against the evasion of the pro-
visions of this Act;
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(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 ap-
propriate 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 appro-
priate.
(3) CONSTRUCTION.—(A) Nothing in
this Act shall be construed to prohibit the
Board from requiring, to the extent and
under circumstances considered appro-
priate by the Board, that affiliates of an
applicant be subject to certain obliga-
tions 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 per-