Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) SHORT TITLE.—This Act may be cited as the
‘‘Rural Local Broadcast Signal Act’’.
(b) TABLE OF CONTENTS.—The table of contents of
this Act is as follows:
Sec.
1. Short title; table of contents.
Sec.
2. Purpose.
Sec.
3. Rural Television Loan Guarantee Board.
Sec.
4. Approval of loan guarantees.
Sec.
5. Administration of loan guarantees.
Sec.
6. Prohibition on use of funds for spectrum auctions.
Sec.
7. Prohibition on use of funds by incumbent cable operators.
Sec.
8. Annual audit.
Sec.
9. Exemption from must carry requirements.
Sec. 10. Additional availability of broadcast signals in rural areas.
Sec. 11. Improved cellular service in rural areas.
Sec. 12. Technical amendment.
Sec. 13. Definitions.
Sec. 14. Authorizations of appropriations.
Sec. 15. Sunset.
SEC. 2. PURPOSE.
The purpose of this Act is to facilitate access, on a
technologically neutral basis and by December 31, 2006,
to signals of local television stations for households located
in unserved areas and underserved areas.
SEC. 3. RURAL TELEVISION LOAN GUARANTEE BOARD.
(a) ESTABLISHMENT.—There is established the
Rural Television Loan Guarantee Board (in this Act re-
ferred to as the ‘‘Board’’).
(b) MEMBERS.—
(1) IN GENERAL.—Subject to paragraph (2),
the Board shall consist of the following members:
(A) The Secretary of the Treasury, or the
designee of the Secretary.
(B) The Secretary of Agriculture, or the
designee of the Secretary.
(C) The Secretary of Commerce, or the
designee of the Secretary.
(2) REQUIREMENT AS TO DESIGNEES.—An in-
dividual 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 ap-
pointment by the President, by and with the advice
and consent of the Senate.
(c) FUNCTIONS OF THE BOARD.—
(1) IN GENERAL.—The Board shall determine
whether or not to approve loan guarantees under
this Act. The Board shall make such determinations
consistent with the purpose of this Act and in ac-
cordance 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 con-
sult with such departments and agencies of the
Federal Government as the Board considers ap-
propriate, including the Department of Com-
merce, the Department of Agriculture, the De-
partment of the Treasury, the Department of
Justice, the Department of the Interior, the
Board of Governors of the Federal Reserve Sys-
tem, the Federal Communications Commission,
the Federal Trade Commission, and the Na-
tional Aeronautics and Space Administration.
(B) RESPONSE.—A department or agency
consulted by the Board under subparagraph (A)
shall provide the Board such expertise and as-
sistance as the Board requires to carry out its
functions under this Act.
(3) APPROVAL BY MAJORITY VOTE.—The deter-
mination of the Board to approve a loan guarantee
under this Act shall be by a vote of a majority of
the Board.
SEC. 4. APPROVAL OF LOAN GUARANTEES.
(a) AUTHORITY TO APPROVE LOAN GUARANTEES.—
Subject to the provisions of this section and consistent
with the purpose of this Act, the Board may approve loan
guarantees under this Act.
(b) REGULATIONS.—
(1) REQUIREMENTS.—The Administrator (as
defined in section 5 of this Act), under the direction
of and for approval by the Board, shall prescribe
regulations to implement the provisions of this Act
and shall do so not later than 120 days after funds
authorized to be appropriated under section 15 of
this Act have been appropriated in a bill signed into
law.
(2) ELEMENTS.—The regulations prescribed
under paragraph (1) shall—
(A) set forth the form of any application to
be submitted to the Board under this Act;
(B) set forth time periods for the review
and consideration by the Board of applications
to be submitted to the Board under this Act,
and for any other action to be taken by the
Board with respect to such applications;
(C) provide appropriate safeguards against
the evasion of the provisions of this Act;
(D) set forth the circumstances in which
an applicant, together with any affiliate of an
applicant, shall be treated as an applicant for
a loan guarantee under this Act;
(E) include requirements that appropriate
parties submit to the Board any documents and
assurances that are required for the administra-
tion of the provisions of this Act; and
(F) include such other provisions con-
sistent with the purpose of this Act as the
Board considers appropriate.
(3) CONSTRUCTION.—(A) Nothing in this Act
shall be construed to prohibit the Board from requir-
ing, to the extent and under circumstances consid-
ered appropriate by the Board, that affiliates of an
applicant be subject to certain obligations of the ap-
plicant as a condition to the approval or mainte-
nance of a loan guarantee under this Act.
(B) If any provision of this Act or the applica-
tion of such provision to any person or entity or cir-
cumstance is held to be invalid by a court of com-
petent jurisdiction, the remainder of this Act, or the
application of such provision to such person or entity
or circumstance other than those as to which it is
held invalid, shall not be affected thereby.
(c) AUTHORITY
LIMITED
BY
APPROPRIATIONS
ACTS.—The Board may approve loan guarantees under
this Act only to the extent provided for in advance in ap-
propriations Acts.
(d) REQUIREMENTS AND CRITERIA APPLICABLE TO
APPROVAL.—
(1) IN GENERAL.—The Board shall utilize the
underwriting criteria developed under subsection (g),
and any relevant information provided by the de-
partments and agencies with which the Board
consults under section 3, to determine which loans
may be eligible for a loan guarantee under this Act.
(2) PREREQUISITES.—In addition to meeting
the underwriting criteria under paragraph (1), a
loan may not be guaranteed under this Act unless—
(A) the loan is made to finance the acqui-
sition, improvement, enhancement, construction,
deployment, launch, or rehabilitation of the
means by which local television broadcast sig-
nals will be delivered principally to an unserved
area or an underserved area (or both);
(B) the proceeds of the loan will not be
used for operating, advertising, or promotion
expenses;
(C) the proposed project, as determined by
the National Telecommunications and Informa-
tion Administration, is not likely to have a sub-
stantial adverse impact on competition that out-
weighs the benefits of improving access to the
signals of a local television station in an
unserved area or an underserved area (or both),
and is commercially viable;
(D)(i) the loan (including Other Debt, as
defined in subsection (f)(2)(B))—
(I) is provided by any entity engaged
in the business of commercial lending—
(aa) if the loan is made in ac-
cordance 
with 
loan-to-one-borrower
and affiliate transaction restrictions to
which the entity is subject under ap-
plicable law; or
(bb) if item (aa) does not apply,
the loan is made only to a borrower
that is not an affiliate of the entity
and only if the amount of the loan
and all outstanding loans by that enti-
ty to that borrower and any of its af-
filiates does not exceed 10 percent of
the net equity of the entity; or
(II) is provided by a nonprofit cor-
poration, including the National Rural
Utilities Cooperative Finance Corporation,
engaged primarily in commercial lending, if
the Board determines that such nonprofit
corporation has one or more issues of out-
standing long-term debt that is rated with-
in the highest 3 rating categories of a na-
tionally recognized statistical rating orga-
nization, and, if the Board determines that
the making of the loan by such nonprofit
corporation will cause a decline in the debt
rating mentioned above, the Board at its
discretion may disapprove the loan guar-
antee on this basis;
(ii)(I) no loan (including Other Debt as de-
fined in subsection (f)(2)(B)) may be made for
purposes of this Act by a governmental entity
or affiliate thereof, or by the Federal Agricul-
tural Mortgage Corporation, or any institution
supervised by the Office of Federal Housing
Enterprise Oversight, the Federal Housing Fi-
nance Board, or any affiliate of such entities;
(II) any loan (including Other Debt as de-
fined in subsection (f)(2)(B)) must have terms,
in the judgment of the Board, that are con-
sistent in material respects with the terms of
similar obligations in the private capital mar-
ket;
(III) for purposes of clause (i)(I)(bb), the
term ‘‘net equity’’ means the value of the total
assets of the entity, less the total liabilities of
the entity, as recorded under generally accepted
accounting principles for the fiscal quarter
ended immediately prior to the date on which
the subject loan is approved; and
(E) repayment of the loan is required to be
made within a term of the lesser of—
(i) 25 years from the date of the exe-
cution of the loan; or
(ii) the economically useful life, as de-
termined by the Board or in consultation
with persons or entities deemed appro-
priate by the Board, of the primary assets
to be used in the delivery of the signals
concerned; and
(F) the loan meets any additional criteria
developed under subsection (g).
(3) PROTECTION
OF
UNITED
STATES
FINAN-
CIAL INTERESTS.—The Board may not approve the
guarantee of a loan under this Act unless—
(A) the Board has been given documenta-
tion, assurances, and access to information,
persons, and entities necessary, as determined
by the Board, to address issues relevant to the
review of the loan by the Board for purposes of
this Act; and
(B) the Board makes a determination in
writing that—
(i) to the best of its knowledge upon
due inquiry, the assets, facilities, or equip-
ment covered by the loan will be utilized
economically and efficiently;
(ii) the terms, conditions, security,
and schedule and amount of repayments of
principal and the payment of interest with
respect to the loan protect the financial in-
terests of the United States and are rea-
sonable;
(iii) to the extent possible, the value
of collateral provided by an applicant is at
least equal to the unpaid balance of the
loan amount covered by the loan guarantee
(the ‘‘Amount’’ for purposes of this
clause); and if the value of collateral pro-
vided by an applicant is less than the
Amount, the additional required collateral
is provided by any affiliate of the appli-
cant; and if the combined value of collat-
eral provided by an applicant and any affil-
iate is not at least equal to the Amount,
the collateral from such affiliate represents
all of such affiliate’s assets;
(iv) all necessary and required regu-
latory and other approvals, spectrum
rights, and delivery permissions have been
received for the loan, the project under the
loan, and the Other Debt, if any, under
subsection (f)(2)(B);
(v) the loan would not be available on
reasonable terms and conditions without a
loan guarantee under this Act; and
(vi) repayment of the loan can reason-
ably be expected.
(e) CONSIDERATIONS.—
(1) TYPE OF MARKET.—
(A) PRIORITY
CONSIDERATIONS.—To the
maximum extent practicable, the Board shall
give priority in the approval of loan guarantees
under this Act in the following order: First, to
projects that will serve the greatest number of
households in unserved areas and the number
of States (including noncontiguous States); and
second, to projects that will serve the greatest
number of households in underserved areas. In
each instance, the Board shall consider the
project’s estimated cost per household to be
served.
(B) PROHIBITION.—The Board may not
approve a loan guarantee under this Act for a
project that is designed primarily to serve one
or more of the 40 most populated designated
market areas (as that term is defined in section
122(j) of title 17, United States Code).
(2) OTHER CONSIDERATIONS.—The Board shall
consider other factors, which shall include projects
that would—
(A) offer a separate tier of local broadcast
signals;
(B) provide lower projected costs to con-
sumers of such separate tier; and
(C) enable the delivery of local broadcast
signals consistent with the purpose of this Act
by a means reasonably compatible with existing
systems or devices predominantly in use.
(f) GUARANTEE LIMITS.—
(1) LIMITATION
ON
AGGREGATE
VALUE
OF
LOANS.—The aggregate value of all loans for which
loan guarantees are issued under this Act (including
the unguaranteed portion of loans issued under
paragraph (2)(A)) and Other Debt under paragraph
(2)(B) may not exceed $1,250,000,000.
(2) GUARANTEE
LEVEL.—A loan guarantee
issued under this Act—
(A) may not exceed an amount equal to 80
percent of a loan meeting in its entirety the re-
quirements of subsection (d)(2)(A). If only a
portion of a loan meets the requirements of
that subsection, the Board shall determine that
percentage of the loan meeting such require-
ments (the ‘‘applicable portion’’) and may issue
a loan guarantee in an amount not exceeding
80 percent of the applicable portion; or
(B) may, as to a loan meeting in its en-
tirety the requirements of subsection (d)(2)(A),
cover the amount of such loan only if that loan
is for an amount not exceeding 80 percent of
the total debt financing for the project, and
other debt financing (also meeting in its en-
tirety the requirements of subsection (d)(2)(A))
from the same source for a total amount not
less than 20 percent of the total debt financing
for the project (‘‘Other Debt’’) has been ap-
proved.
(g) UNDERWRITING CRITERIA.—Within the period
provided for under subsection (b)(1), the Board shall, in
consultation with the Director of the Office of Manage-
ment and Budget and an independent public accounting
firm, develop underwriting criteria relating to the guar-
antee of loans that are consistent with the purpose of this
Act, including appropriate collateral and cash flow levels
for loans guaranteed under this Act, and such other mat-
ters as the Board considers appropriate.
(h) CREDIT RISK PREMIUMS.—
(1) ESTABLISHMENT AND ACCEPTANCE.—The
Board may establish and approve the acceptance of
credit risk premiums with respect to a loan guar-
antee under this Act in order to cover the cost, as
determined under section 504(b)(1) of the Federal
Credit Reform Act of 1990, of the loan guarantee.
To the extent that appropriations of budget author-
ity are insufficient to cover the cost, as so deter-
mined, of a loan guarantee under this Act, credit
risk premiums shall be accepted from a non-Federal
source under this subsection on behalf of the appli-
cant for the loan guarantee.
(2) CREDIT RISK PREMIUM AMOUNT.—
(A) IN GENERAL.—The Board shall deter-
mine the amount of any credit risk premium to
be accepted with respect to a loan guarantee
under this Act on the basis of—
(i) the financial and economic cir-
cumstances of the applicant for the loan
guarantee, including the amount of collat-
eral offered;
(ii) the proposed schedule of loan dis-
bursements;
(iii) the business plans of the appli-
cant for providing service;
(iv) any financial commitment from a
broadcast signal provider; and
(v) the concurrence of the Director of
the Office of Management and Budget as
to the amount of the credit risk premium.
(B) PROPORTIONALITY.—To the extent
that appropriations of budget authority are suf-
ficient to cover the cost, as determined under
section 504(b)(1) of the Federal Credit Reform
Act of 1990, of loan guarantees under this Act,
the credit risk premium with respect to each
loan guarantee shall be reduced proportionately.
(C) PAYMENT OF PREMIUMS.—Credit risk
premiums under this subsection shall be paid to
an account (the ‘‘Escrow Account’’) established
in the Treasury which shall accrue interest and
such interest shall be retained by the account,
subject to subparagraph (D).
(D) DEDUCTIONS
FROM
ESCROW
AC-
COUNT.—If a default occurs with respect to any
loan guaranteed under this Act and the default
is not cured in accordance with the terms of the
underlying loan or loan guarantee agreement,
the Administrator, in accordance with sub-
sections (h) and (i) of section 5 of this Act,
shall liquidate, or shall cause to be liquidated,
all assets collateralizing such loan as to which
it has a lien or security interest. Any shortfall
between the proceeds of the liquidation net of
costs and expenses relating to the liquidation,
and the guarantee amount paid pursuant to
this Act shall be deducted from funds in the
Escrow Account and credited to the Adminis-
trator for payment of such shortfall. At such
time as determined under subsection (d)(2)(E)
when all loans guaranteed under this Act have
been repaid or otherwise satisfied in accordance
with this Act and the regulations promulgated
hereunder, remaining funds in the Escrow Ac-
count, if any, shall be refunded, on a pro rata
basis, to applicants whose loans guaranteed
under this Act were not in default, or where
any default was cured in accordance with the
terms of the underlying loan or loan guarantee
agreement.
(i) JUDICIAL REVIEW.—The decision of the Board to
approve or disapprove the making of a loan guarantee
under this Act shall not be subject to judicial review.
SEC. 5. ADMINISTRATION OF LOAN GUARANTEES.
(a) IN GENERAL.—The Administrator of the Rural
Utilities Service (in this Act referred to as the ‘‘Adminis-
trator’’) shall issue and otherwise administer loan guaran-
tees that have been approved by the Board in accordance
with sections 3 and 4 of this Act.
(b) SECURITY FOR PROTECTION OF UNITED STATES
FINANCIAL INTERESTS.—
(1) TERMS
AND
CONDITIONS.—An applicant
shall agree to such terms and conditions as are sat-
isfactory, in the judgment of the Board, to ensure
that, as long as any principal or interest is due and
payable on a loan guaranteed under this Act, the
applicant—
(A) shall maintain assets, equipment, fa-
cilities, and operations on a continuing basis;
(B) shall not make any discretionary divi-
dend payments that impair its ability to repay
obligations guaranteed under this Act;
(C) shall remain sufficiently capitalized;
and
(D) shall submit to, and cooperate fully
with, any audit of the applicant under section
8(a)(2) of this Act.
(2) COLLATERAL.—
(A) EXISTENCE
OF
ADEQUATE
COLLAT-
ERAL.—An applicant shall provide the Board
such documentation as is necessary, in the
judgment of the Board, to provide satisfactory
evidence that appropriate and adequate collat-
eral secures a loan guaranteed under this Act.
(B) FORM OF COLLATERAL.—Collateral re-
quired by subparagraph (A) shall consist solely
of assets of the applicant, any affiliate of the
applicant, or both (whichever the Board con-
siders appropriate), including primary assets to
be used in the delivery of signals for which the
loan is guaranteed.
(C) REVIEW OF VALUATION.—The value of
collateral securing a loan guaranteed under this
Act may be reviewed by the Board, and may be
adjusted downward by the Board if the Board
reasonably believes such adjustment is appro-
priate.
(3) LIEN ON INTERESTS IN ASSETS.—Upon the
Board’s approval of a loan guarantee under this Act,
the Administrator shall have liens on assets securing
the loan, which shall be superior to all other liens on
such assets, and the value of the assets (based on
a determination satisfactory to the Board) subject to
the liens shall be at least equal to the unpaid bal-
ance of the loan amount covered by the loan guar-
antee, or that value approved by the Board under
section 4(d)(3)(B)(iii) of this Act.
(4) PERFECTED
SECURITY
INTEREST.—With
respect to a loan guaranteed under this Act, the Ad-
ministrator and the lender shall have a perfected se-
curity interest in assets securing the loan that are
fully sufficient to protect the financial interests of
the United States and the lender.
(5) INSURANCE.—In accordance with practices
in the private capital market, as determined by the
Board, the applicant for a loan guarantee under this
Act shall obtain, at its expense, insurance sufficient
to protect the financial interests of the United
States, as determined by the Board.
(c) ASSIGNMENT OF LOAN GUARANTEES.—The hold-
er of a loan guarantee under this Act may assign the loan
guaranteed under this Act in whole or in part, subject to
such requirements as the Board may prescribe.
(d) MODIFICATION.—The Board may approve the
modification of any term or condition of a loan guarantee
or a loan guaranteed under this Act, including the rate
of interest, time of payment of principal or interest, or
security requirements only if—
(1) the modification is consistent with the fi-
nancial interests of the United States;
(2) consent has been obtained from the parties
to the loan agreement;
(3) the modification is consistent with the un-
derwriting criteria developed under section 4(g) of
this Act;
(4) the modification does not adversely affect
the interest of the Federal Government in the assets
or collateral of the applicant;
(5) the modification does not adversely affect
the ability of the applicant to repay the loan; and
(6) the National Telecommunications and Infor-
mation Administration has been consulted by the
Board regarding the modification.
(e) PERFORMANCE SCHEDULES.—
(1) PERFORMANCE SCHEDULES.—An applicant
for a loan guarantee under this Act for a project
covered by section 4(e)(1) of this Act shall enter into
stipulated performance schedules with the Adminis-
trator with respect to the signals to be provided
through the project.
(2) PENALTY.—The Administrator may assess
against and collect from an applicant described in
paragraph (1) a penalty not to exceed three times
the interest due on the guaranteed loan of the appli-
cant under this Act if the applicant fails to meet its
stipulated performance schedule under that para-
graph.
(f) COMPLIANCE.—The Administrator, in cooperation
with the Board and as the regulations of the Board may
provide, shall enforce compliance by an applicant, and any
other party to a loan guarantee for whose benefit assist-
ance under this Act is intended, with the provisions of this
Act, any regulations under this Act, and the terms and
conditions of the loan guarantee, including through the
submittal of such reports and documents as the Board
may require in regulations prescribed by the Board and
through regular periodic inspections and audits.
(g) COMMERCIAL
VALIDITY.—A loan guarantee
under this Act shall be incontestable—
(1) in the hands of an applicant on whose be-
half the loan guarantee is made, unless the applicant
engaged in fraud or misrepresentation in securing
the loan guarantee; and
(2) as to any person or entity (or their respec-
tive successor in interest) who makes or contracts to
make a loan to the applicant for the loan guarantee
in reliance thereon, unless such person or entity (or
respective successor in interest) engaged in fraud or
misrepresentation in making or contracting to make
such loan.
(h) DEFAULTS.—The Board shall prescribe regula-
tions governing defaults on loans guaranteed under this
Act, including the administration of the payment of guar-
anteed amounts upon default.
(i) RECOVERY OF PAYMENTS.—
(1) IN GENERAL.—The Administrator shall be
entitled to recover from an applicant for a loan
guarantee under this Act the amount of any pay-
ment made to the holder of the guarantee with re-
spect to the loan.
(2) SUBROGATION.—Upon making a payment
described in paragraph (1), the Administrator shall
be subrogated to all rights of the party to whom the
payment is made with respect to the guarantee
which was the basis for the payment.
(3) DISPOSITION OF PROPERTY.—
(A) SALE
OR
DISPOSAL.—The Adminis-
trator shall, in an orderly and efficient manner,
sell or otherwise dispose of any property or
other interests obtained under this Act in a
manner that maximizes taxpayer return and is
consistent with the financial interests of the
United States.
(B) MAINTENANCE.—The Administrator
shall maintain in a cost-effective and reasonable
manner any property or other interests pending
sale or disposal of such property or other inter-
ests under subparagraph (A).
(j) ACTION AGAINST OBLIGOR.—
(1) AUTHORITY TO BRING CIVIL ACTION.—The
Administrator may bring a civil action in an appro-
priate 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 guar-
anteed under this Act. The holder of a loan guar-
antee shall make available to the Administrator all
records and evidence necessary to prosecute the civil
action.
(2) FULLY
SATISFYING
OBLIGATIONS
OWED
THE UNITED STATES.—The Administrator may ac-
cept property in satisfaction of any sums owed the
United States as a result of a default on a loan
guaranteed under this Act, but only to the extent
that any cash accepted by the Administrator is not
sufficient to satisfy fully the sums owed as a result
of the default.
(k) BREACH OF CONDITIONS.—The Administrator
shall commence a civil action in a court of appropriate
jurisdiction to enjoin any activity which the Board finds
is in violation of this Act, the regulations under this Act,
or any conditions which were duly agreed to, and to secure
any other appropriate relief, including relief against any
affiliate of the applicant.
(l) ATTACHMENT.—No attachment or execution may
be issued against the Administrator or any property in the
control of the Administrator pursuant to this Act before
the entry of a final judgment (as to which all rights of
appeal have expired) by a Federal, State, or other court
of competent jurisdiction against the Administrator in a
proceeding for such action.
(m) FEES.—
(1) 
APPLICATION
FEE.—The 
Board 
shall
charge and collect from an applicant for a loan guar-
antee under this Act a fee to cover the cost of the
Board in making necessary determinations and find-
ings with respect to the loan guarantee application
under this Act. The amount of the fee shall be rea-
sonable.
(2) LOAN GUARANTEE ORIGINATION FEE.—The
Board shall charge, and the Administrator may col-
lect, a loan guarantee origination fee with respect to
the issuance of a loan guarantee under this Act.
(3) USE OF FEES COLLECTED.—Any fee col-
lected under this subsection shall be used to offset
administrative costs under this Act, including costs
of the Board and of the Administrator.
(n) REQUIREMENTS RELATING TO AFFILIATES.—
(1) INDEMNIFICATION.—The United States
shall be indemnified by any affiliate (acceptable to
the Board) of an applicant for a loan guarantee
under this Act for any losses that the United States
incurs as a result of—
(A) a judgment against the applicant or
any of its affiliates;
(B) any breach by the applicant or any of
its affiliates of their obligations under the loan
guarantee agreement;
(C) any violation of the provisions of this
Act, and the regulations prescribed under this
Act, by the applicant or any of its affiliates;
(D) any penalties incurred by the applicant
or any of its affiliates for any reason, including
violation of a stipulated performance schedule
under subsection (e); and
(E) any other circumstances that the
Board considers appropriate.
(2) LIMITATION ON TRANSFER OF LOAN PRO-
CEEDS.—An applicant for a loan guarantee under
this Act may not transfer any part of the proceeds
of the loan to an affiliate.
(o) EFFECT OF BANKRUPTCY.—(1) Notwithstanding
any other provision of law, whenever any person or entity
is indebted to the United States as a result of any loan
guarantee issued under this Act and such person or entity
is insolvent or is a debtor in a case under title 11, United
States Code, the debts due to the United States shall be
satisfied first.
(2) A discharge in bankruptcy under title 11, United
States Code, shall not release a person or entity from an
obligation to the United States in connection with a loan
guarantee under this Act.
SEC. 6. PROHIBITION ON USE OF FUNDS FOR SPECTRUM
AUCTIONS.
Notwithstanding any other provision of this Act, no
loan guarantee under this Act may be granted or used to
provide funds for the acquisition of licenses for the use
of spectrum in any competitive bidding under section
309(j) of the Communications Act of 1934 (47 U.S.C.
309(j)).
SEC. 7. PROHIBITION ON USE OF FUNDS BY INCUMBENT
CABLE OPERATORS.
Notwithstanding any other provision of this Act, no
loan guarantee under this Act may be granted or used to
provide funds for—
(1) the extension of any cable system to any
area or areas for which the cable operator of such
cable system has a cable franchise, if such franchise
obligates the operator to extend such system to such
area or areas; or
(2) the upgrading or enhancement of the serv-
ices provided over any cable system, unless such up-
grading or enhancement is principally undertaken to
extend services to areas outside of the previously ex-
isting franchise area of the cable operator.
SEC. 8. ANNUAL AUDIT.
(a) REQUIREMENT.—The Comptroller General of the
United States shall conduct on an annual basis an audit
of—
(1) the administration of the provisions of this
Act; and
(2) the financial position of each applicant who
receives a loan guarantee under this Act, including
the nature, amount, and purpose of investments
made by the applicant.
(b) REPORT.—The Comptroller General shall submit
to the Congress a report on each audit conducted under
subsection (a).
SEC. 9. EXEMPTION FROM MUST CARRY REQUIREMENTS.
A facility of a satellite carrier, cable system, or other
multichannel video programming distributor that is fi-
nanced with a loan guaranteed under this Act and that
delivers local broadcast signals in a television market pur-
suant to the provisions of section 338, 614, or 615 of the
Communications Act of 1934 (47 U.S.C. 338, 534, or
535) shall not be required to carry in such market a great-
er number of local broadcast signals than the number of
such signals that is carried by the cable system serving
the largest number of subscribers in such market.
SEC. 10. ADDITIONAL AVAILABILITY OF BROADCAST SIG-
NALS IN RURAL AREAS.
(a) OPENING OF FILING FOR ADDITIONAL TRANS-
LATOR AND LOW-POWER STATIONS.—The Federal Com-
munications Commission shall, in accordance with its reg-
ulations, open a filing period window for the acceptance
of applications for television translator stations and low-
power television stations in rural areas.
(b) DEADLINES
FOR
NOTICE.—The Commission
shall announce the filing period window no less than 90
days prior to the commencement of the window.
SEC. 11. IMPROVED CELLULAR SERVICE IN RURAL AREAS.
(a) REINSTATEMENT OF APPLICANTS AS TENTATIVE
SELECTEES.—
(1) IN GENERAL.—Notwithstanding the order
of the Federal Communications Commission in the
proceeding described in paragraph (3), the Commis-
sion shall—
(A) reinstate each applicant as a tentative
selectee under the covered rural service area li-
censing proceeding; and
(B) permit each applicant to amend its ap-
plication, to the extent necessary to update fac-
tual information and to comply with the rules
of the Commission, at any time before the Com-
mission’s final licensing action in the covered
rural service area licensing proceeding.
(2) EXEMPTION FROM PETITIONS TO DENY.—
For purposes of the amended applications filed pur-
suant to paragraph (1)(B), the provisions of section
309(d)(1) of the Communications Act of 1934 (47
U.S.C. 309(d)(1)) shall not apply.
(3) PROCEEDING.—The proceeding described in
this paragraph is the proceeding of the Commission
In re Applications of Cellwave Telephone Services
L.P., Futurewave General Partners L.P., and Great
Western Cellular Partners, 7 FCC Rcd No. 19
(1992).
(b) CONTINUATION OF LICENSE PROCEEDING; FEE
ASSESSMENT.—
(1) AWARD
OF
LICENSES.—The Commission
shall award licenses under the covered rural service
area licensing proceeding within 90 days after the
date of the enactment of this Act.
(2) SERVICE
REQUIREMENTS.—The Commis-
sion shall provide that, as a condition of an appli-
cant receiving a license pursuant to the covered
rural service area licensing proceeding, the applicant
shall provide cellular radiotelephone service to sub-
scribers in accordance with sections 22.946 and