IB
106TH CONGRESS
2D SESSION
H. R. 3615
[Report No. 106–508, Part I]
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-
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
[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-
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.
(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.
(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:
‘‘(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
‘‘(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
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.