LOANS FOR BUSINESS TELECOMMUNICATIONS PARTNERSHIPS.

SEC. 2337. LOANS FOR BUSINESS TELECOMMUNICATIONS PARTNERSHIPS. Section 310B of the Consolidated Farm and Rural Development Act (7 U.S.C. 1932) is amended by adding after the subsections added by section 2347(a) of this Act the following: “(i) Loans for Business Telecommunications Partnerships.— “(1) In general.— The Secretary may make loans under this subsection at low interest rates and at market rates to 1 or more businesses, local governments, or public agencies in rural areas to fund facilities in which the recipients of such loans share telecommunications terminal equipment, computers, computer software, and computer hardware. “(2) General requirements.— “(A) Application process.— “(i) Submission of application.— Any entity desiring a loan under this subsection shall submit an application therefor to the Secretary. “(ii) Contents of application.— Each application for a loan under this subsection shall include— “(I) a detailed explanation of the proposed rural telecommunications system, including the general telecommunications transmission services and facilities required, and a list of the specific equipment that the applicant proposes to purchase or lease, to implement the system; “(II) a description of the manner in which the proposed project is to be funded; 104 STAT. 4023 “(III) a copy of a binding commitment entered into between the applicant and each entity which is legally permitted to provide, and from which the applicant is to obtain, the telecommunications services and facilities required for the project, which stipulates that if the applicant receives the loan requested in the application the entity will provide such telecommunications services and facilities in the area served by the entity within a reasonable time and at a charge which is in accordance with State law; “(IV) a description of the manner in which the applicant intends to use the loan requested in the application; “(V) a description of how the proposed project will be evaluated; and “(VI) such other information as the Secretary may reasonably require. “(B) Consideration of applications.— “(i) Review by secretary.— The Secretary shall— “(I) review each application submitted pursuant to subparagraph (A)(i); “(II) determine whether or not the application meets the requirements of subparagraph (A)(ii); “(III) approve each application which meets such requirements; “(IV) disapprove each application which fails to meet such requirements; and “(V) in the case of an approved application that proposes a project to be implemented in an eligible State (within the meaning of section 365(b)(3)), transmit the approved application to the review panel of the eligible State. “(ii) Review by certain state review panels.— “(I) In general.— The review panel shall examine each application transmitted to the review panel pursuant to clause (i)(V) to determine the technical and economic adequacy and feasibility of the project described in the application and the likelihood that the project will succeed. “(II) Authority to obtain information from applicants.— Each entity which submits an application for a loan under this subsection shall provide the review panel of any eligible State in which the partnership intends to implement the project described in the application such information as the review panel may reasonably request to assist in reviewing the application. “(III) Authority to request applicants to modify projects.— The review panel may, before final consideration of an application of an entity for a loan under this subsection, request the entity to modify the project described in the application. “(iii) Ranking of applications.— “(I) In general.— The review panel shall rank, pursuant to a written policy and criteria, the applications that the review panel receives during104 STAT. 4024 any fiscal year for a loan under this subsection, in an order which takes into account— “(aa) the results of the review conducted under clause (i); “(bb) the extent to which the projects described in the applications would promote any area plan (as defined in section 365(b)(1)) developed for the areas in which the projects are to be implemented; and “(cc) in the case of a project which would duplicate existing services, the reasons therefor. “(II) Grouping of applications.— The review panel shall separate into 2 groups the applications for a loan under this subsection received by the review panel during a fiscal year. The 1st group shall consist of the applications received during the 1st 6 months of the fiscal year. The 2nd group shall consist of the applications received during the 2nd 6 months of the fiscal year. “(III) Competition among applications.— The review panel shall consider each application in a group to be competing only with the other applications in the group. “(IV) Written policy and criteria.— “(aa) In general.— Subject to subdivision (bb), the review panel shall develop the written policy and criteria to be used to rank applications, in the same manner as the review panel develops the written policy and criteria used for purposes of section 366(b)(3). “(bb) Prohibition against development or acquisition of telecommunications transmission facilities.— The policy and criteria developed under subdivision (aa) shall require that the project described in an application not include the development or acquisition of telecommunications transmission facilities. “(iv) Transmittal of ranked applications.— The review panel shall transmit to the State coordinator appointed pursuant to section 365(b)(3)(A)(ii) each list of applications ranked pursuant to clause (ii) of this subsection, in the same manner in which lists of applications ranked pursuant to section 366(b) are transmitted to the State coordinator pursuant to section 366. The State coordinator shall transmit to the Secretary each such list received by the State coordinator. “(C) Priority.— The Secretary shall establish procedures to target loans under this subsection to the rural areas and applicants that demonstrate the need for such loans, taking into consideration— “(i) the relative needs of all applicants; “(ii) the needs of the affected rural areas; “(iii) the financial ability of the applicants, without such loans, to use telecommunications for the business purposes for which such loans may be made; and 104 STAT. 4025 “(iv) the recommendations of the review panels for the eligible States (within the meaning of section 365(b)(3)) in which such areas are located. “(D) Report required if the secretary intends to fund projects other than as recommended by review panel.— If the Secretary determines to provide loans under this subsection to projects in an eligible State (within the meaning of section 365(b)(3)) other than in the manner recommended by the review panel of the State, the Secretary— “(i) within 10 days after making such determination, shall submit to the review panel of the eligible State, the Committee on Agriculture of the House of Representatives, and the Committee on Agriculture, Nutrition, and Forestry of the Senate a report on the reasons for providing loans to projects other than in the manner so recommended; and “(ii) shall not provide such loans before the end of the 7-day period beginning on the date the review panel and such committees have received such report. “(E) Monitoring of use of loans.— The Secretary shall take such steps as may be necessary to ensure that loans provided under this subsection are used in accordance with the approved application therefor. “(3) Relationship to state law.— This subsection shall not be construed to affect in any manner the applicability of the Communications Act of 1934, the regulations and orders prescribed thereunder, or any State or local law relating to the regulation or provision of telecommunications facilities or services. “(4) Regulations.— Not later than 120 days after the date of the enactment of this subsection, the Secretary shall prescribe final regulations governing the loan program established under this subsection other than with respect to agency management and personnel, in accordance with the notice and comment rulemaking requirements described in section 553 of title 5, United States Code, notwithstanding subsection (a)(2) of such section 553. “(5) Definitions.— As used in this subsection: “(A) Review panel.— The term ‘review panel’ means, with respect to an eligible State (within the meaning of section 365(b)(3), the rural economic development review panel of the State, as established pursuant to section 366. “(B) Rural area.— The term ‘rural area’ has the meaning given such term in section 306(a)(7) for purposes of loans for essential community facilities under section 306(a)(1). “(C) Telecommunications terminal equipment.— The term ‘telecommunications terminal equipment’ means telecommunications equipment (excluding telecommunications transmission facilities) that— “(i) interconnects with telecommunications transmission facilities; and “(ii) modifies, converts, encodes, or otherwise prepares signals to be transmitted through, or modifies, reconverts, or carries signals received from, the facilities. 104 STAT. 4026 “(D) Telecommunications transmission facilities.— The term ‘telecommunications transmission facilities’ means facilities (other than telecommunications terminal equipment) that transmit, receive, or carry signals between the telecommunications terminal equipment at each end of a telecommunications circuit or path. “(6) Treatment of loan program as designated rural development program.— For purposes of this title, the loan program established under this subsection shall, with respect to eligible States (within the meaning of section 365(b)(3)), be treated as a designated rural development program (within the meaning of section 365(b)(2)). “(7) Limitations on authorization of appropriations.— “(A) In general.— For loans under this subsection, there are authorized to be appropriated to the Secretary $15,000,000 for each of fiscal years 1991, 1992, 1993, 1994, and 1995. “(B) Availability.— Amounts appropriated pursuant to subparagraph (A) shall remain available until expended.”.