tutions, research facilities, libraries, museums, State
and local governments, and other social service and
public information providers;
‘‘(2) enhance the ability, through interconnec-
tion, of health care providers, educational institu-
tions, research facilities, libraries, museums, State
and local governments, and other social service and
public information providers to have access to exist-
ing and new sources of information;
‘‘(3) the development and utilization of stand-
ards for interoperability and interconnection of the
various facilities, systems, and networks which would
comprise a demonstration or pilot project;
‘‘(4) universal availability and utilization of an
advanced telecommunications and information infra-
structure, especially for traditionally underserved
populations; and
‘‘(5) demonstrate and improve the efficiency
and effectiveness of the delivery of social services,
such as education and health care, to the American
people.
‘‘(b) APPLICATIONS FOR GRANTS.—Any eligible ap-
plicant desiring to obtain a grant under this part shall
submit to the Secretary an application containing such in-
formation with respect to such project as the Secretary
may require. Each applicant shall also provide assurances
satisfactory to the Secretary that—
‘‘(1) the applicant is—
‘‘(A) a nonprofit foundation, corporation,
institution, or association;
‘‘(B) a State or local government (or any
agency thereof), or a political or special purpose
subdivision of a State or local government; or
‘‘(C) any enterprise owned and operated by
a State or local government entity;
‘‘(2) the applicant has the technical, adminis-
trative, and financial capability to obtain, operate,
and maintain the facilities, systems, or networks
that are the subject of the application;
‘‘(3) the applicant has chosen an efficient and
economical means to achieve its communications or
information needs, and has not failed to utilize com-
mercially available network services to meet such
needs to the extent such commercial services meet
the needs of the applicant in the most efficient and
economical manner;
‘‘(4) the applicant has participated in com-
prehensive planning for such facilities, systems, or
networks and such planning has included an evalua-
tion of alternative technologies and coordination with
appropriate State agencies, as needed;
‘‘(5) the amount of the grant will not exceed 50
percent of the amount determined by the Secretary
to be the reasonable and necessary cost of such
project, unless the Secretary determines that ex-
traordinary circumstances warrant permitting a
grant in an amount that will not exceed 75 percent
of such cost; and
‘‘(6) the applicant will use any facility, system,
or network obtained with funds provided under this
section primarily to achieve the objectives identified
in the application and will comply with regulations
prescribed by the Secretary with respect to resale of
any capacity of such facility, system, or network.
‘‘(c) REGULATIONS; PRIORITIES.—The Secretary
shall establish such regulations as may be necessary to
carry out this part, including regulations relating to the
order of priority to be used in approving applications and
relating to determining the amount of each grant for such
projects. As part of such regulations, the Secretary shall
provide a preference in the award of assistance for projects
that increase utilization and efficiency of existing tele-
communications and information facilities. The Secretary
shall seek the views of the Secretary of Education, the
Secretary of Health and Human Services, and the Direc-
tor of the National Science Foundation in developing the
regulations authorized under this part. Such regulations
shall include such regulations for purposes of subsection
(b)(6) as the Secretary determines to be necessary to pre-
vent an applicant from using commercial resale of excess
capacity to compete unfairly with providers of tele-
communications services.
‘‘(d) SPECIAL CONSIDERATION.—In establishing cri-
teria for grants pursuant to this part, and in establishing
procedures relating to the order of priority established
under subsection (c) in approving applications for grants,
the Secretary shall give special consideration to applica-
tions that (1) will increase participation by minorities, in-
dividuals with disabilities, women, and other underserved
populations in the ownership of, operation of, and access
to, telecommunications and information infrastructure;
and (2) will avoid unnecessary duplication of existing fa-
cilities and services. The Secretary shall take affirmative
steps to inform minorities, individuals with disabilities,
women, and other underserved populations of the avail-
ability of funds under this part, and to provide such other
assistance and information as may be appropriate.