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Sec. 6011. Grants to improve technical infrastructure and improve quality of rural health care facilities.

6 Subtitle D of the Consolidated Farm and Rural Development Act (7 U.S.C. 1981–2008r), as amended by section 5025 of this Act, is amended by inserting after section 365 the following:

SEC. 366. GRANTS TO IMPROVE TECHNICAL INFRASTRUCTURE AND IMPROVE QUALITY OF RURAL HEALTH CARE FACILITIES.

(a) IN GENERAL.—The Secretary shall establish a program to award grants to rural health facilities for the purpose of assisting the facilities in—

(1) purchasing health information technology to improve quality in health care and patient safety; or

(2) improving health care quality and patient safety, including the development of—

(A) quality improvement support structures to assist rural health systems and professionals—

(i) achieve greater integration of personal and population health services; and

(ii) address safety, effectiveness,

patient- or community-centeredness, timeliness, efficiency, and equity; and

(B) innovative approaches to the financing and delivery of health services to achieve rural health quality goals.

(b) DEFINITIONS.—In this section:

(1) HEALTH INFORMATION TECHNOLOGY.—

The term ‘health information technology’ includes total expenditures incurred for—

(A) purchasing, leasing, and installing computer software and hardware, including handheld computer technologies, and related services;

(B) making improvements to computer software and hardware;

(C) purchasing or leasing communications capabilities necessary for clinical data access, storage, and exchange;

(D) services associated with acquiring, implementing, operating, or optimizing the use of computer software and hardware and clinical health care informatics systems;

(E) providing education and training to eligible entity staff on information systems and technology designed to improve patient safety and quality of care; and

(F) purchasing, leasing, subscribing, or servicing support to establish interoperability that—

(i) integrates patient-specific clinical data with well-established national treatment guidelines;

(ii) provides ongoing, continuous quality improvement functions that allow providers to assess improvement rates over time and against averages for similar providers; and

(iii) integrates with larger health networks.

(2) RURAL AREA.—The term ‘rural area’ means any area of the United States that is not—

(A) included within the boundaries of any city, town, borough, or village, whether incorcorated or unincorporated, with a population of more than 20,000 inhabitants; or

(B) the urbanized area contiguous and adjacent to such a city or town.

(3) RURAL HEALTH FACILITY.—The term rural health facility’ means any of the following:

(A) SOLE COMMUNITY HOSPITAL.—A hospital (as defined in section 1886(a)(2) of the Social Security Act (42 U.S.C. 1395ww(a)(2))).

(B) CRITICAL ACCESS HOSPITAL.—A critical access hospital (as defined in section 1861(mm)(1) of the Social Security Act (42 U.S.C. 1395x(mm)(1))).

(C) FEDERALLY QUALIFIED HEALTH CENTER IN RURAL AREAS.—A Federally qualified health center (as defined in section 1861(aa)(4) of the Social Security Act (42 U.S.C. 1395x(aa)(4)) that is located in a rural area.

(D) RURAL PHYSICIAN OR RURAL PHYSICIAN GROUP PRACTICE.—A physician or physician group practice that is located in a rural area.

(E) RURAL HEALTH CLINIC.—A rural health clinic (as defined in section 1861(aa)(2) of the Social Security Act (42 U.S.C.1395x(aa)(2))).

(F) MEDICARE DEPENDENT HOSPITAL.— A medicare-dependent, small rural hospital (as defined in section 1886(d)(5)(G)(iv) of the Social Security Act (42 U.S.C.1395ww(d)(5)(G)(iv))).

(c) AMOUNT OF GRANT.—The Secretary shall determine the amount of a grant awarded under this section.

(d) FURNISHING THE SECRETARY WITH INFORMATION.—An eligible entity receiving a grant under this section shall furnish the Secretary with such information as the Secretary may require to—

(1) evaluate the project for which the grant is made; and

(2) ensure that assistance provided under the grant is expended for the purposes for which the grant is made.

(e) AUTHORIZATION OF APPROPRIATIONS.—There are authorized to be appropriated to the Secretary to carry out this section not more than $30,000,000 for each of the fiscal years 2008 through 2012.’’

Sec. 6022. Access to broadband telecommunications services in rural areas.

(a) DEFINITIONS.—Section 601(b) of the Rural Electrification Act of 1936 (7 U.S.C. 950bb(b)) is amended by striking paragraph (2) and inserting the following:

(2) ELIGIBLE RURAL COMMUNITY.—The term eligible rural community’ means any area of the United States that is not—

(A) included within the boundaries of any city, town, borough, or village, whether incorporated or unincorporated, with a population of more than 20,000 inhabitants; or

(B) the urbanized area contiguous and adjacent to such a city or town.’’.

(b) PRIORITIZATION OF APPLICATIONS.—

(1) DEFINITION.—Section 601(b) of such Act (7 U.S.C. 950bb(b)), as amended by subsection (a) of this section, is amended by adding at the end the following:

(3) INCUMBENT SERVICE PROVIDER.—The term ‘incumbent service provider’ means, with respect to an application submitted pursuant to this section, an entity that is providing broadband services to at least 5 percent of the service area proposed in the application.’’.

(2) PRIORITY BASED ON NUMBER OF INCUMBENT SERVICE PROVIDERS.—Section 601(c) of such Act (7 U.S.C. 950bb(c)) is amended by adding at the end the following:

(3) APPLICATIONS PRIORITIZED BASED ON NUMBER OF INCUMBENT SERVICE PROVIDERS.—

(A) IN GENERAL.—In making or guaranteeing loans under paragraph (1), the Secretary shall give priority, in the following order, to applications from eligible rural communities that have—

(i) no incumbent service provider;

(ii) 1 incumbent services provider; or

(iii) 2 incumbent service providers,

except that the communities served must compose no more than 25 percent of the total area to be served.

(B) PROHIBITIONS.—In carrying out this section, the Secretary may not—

(i) make a loan to any community in which there are 3 or more incumbent service providers; or

(ii) make a loan for new construction to any community in which more than 75 percent of the households may obtain affordable broadband service, on request, from at least 1 incumbent service provider.’’.

(c) INCREASE IN MAXIMUM NUMBER OF SUBSCRIBER LINES THAT MAY BE SERVED BY AN ELIGIBLE ENTITY.—Section 601(d)(3) of such Act (7 U.S.C. 950bb(d)(3)) is amended by striking ‘‘2’’ and inserting ‘‘10’’.

(d) LIMITATION ON FUNDS TO ENTITIES WITH MORE THAN 2 PERCENT OF SUBSCRIBER LINES.—Section 601(d) of such Act (7 U.S.C. 950bb(d)) is amended by adding at the end the following:

(4) LIMITATION ON FUNDS TO ENTITIES WITH MORE THAN 2 PERCENT OF SUBSCRIBER LINES.—

Not more than 25 percent of the loans made under this section in a single fiscal year may be approved for entities that serve more than 2 percent of the telephone subscriber lines in the United States.’’.

(e) ADEQUACY OF SECURITY.—Section 601 of such Act (7 U.S.C. 950bb) is amended by redesignating subsections (h) through (j) as subsections (i) through (k), respectively, and inserting after subsection (g) the following:

(h) ADEQUACY OF SECURITY.—The Secretary shall ensure that the type, amount and method of security used to secure any loan or loan guarantee provided under this section is commensurate to the risk involved with the loan or loan guarantee, particularly when the loan or loan guarantee is issued to a financially healthy, strong, and stable entity.’’.

(f) GENERAL REPORT ON PROGRAM.—Section 601 of such Act (7 U.S.C. 950bb), as amended by subsection (e) of this section, is amended by redesignating subsections (k) and (l) as subsections (l) and (m), respectively, and inserting after subsection (j) the following:

(k) GENERAL PROGRAM REPORT.—Not later than December 1 of each year, the Secretary shall prepare and submit to the Committee on Agriculture of the House of Representatives and the Committee on Agriculture, Nutrition, and Forestry of the Senate a report that details for the preceding fiscal year—

(1) the loans made under this section;

(2) the communities served under this section;

(3) the length of time to approve applications submitted pursuant to this section; and

(4) the outreach efforts undertaken by the Department of Agriculture to encourage persons in areas without broadband service to submit applications pursuant to this section.’’.

(g) NATIONAL CENTER FOR RURAL TELECOMMUNICATIONS ASSESSMENT.—Section 601 of such Act (7 U.S.C. 950bb), as amended by subsections (e) and (f) of this section, is amended by redesignating subsections (l) and (m) as subsections (m) and (n), respectively, and inserting after subsection (k) the following:

(l) NATIONAL CENTER FOR RURAL TELECOMMUNICATIONS ASSESSMENT.—

(1) ESTABLISHMENT OF CENTER.—The Secretary shall designate a National Center for Rural Telecommunications Assessment (in this subsection referred to as the ‘Center’).

(2) CRITERIA.—The Secretary shall use the following criteria in making the designation:

(A) The Center must be an entity with a focus on rural policy research and a minimum of 5 years experience in rural telecommunications research and assessment.

(B) The Center must be capable of assessing broadband services in rural areas.

(C) The Center must have significant experience with other rural economic development centers and organizations in the assessment of rural policies and formulation of policy solutions at the local, State, and Federal level.

(3) BOARD.—The management of the Center shall be vested in a board of directors that is capable of oversight of the duties set forth in paragraph (4).

(4) DUTIES.—The Center shall—

(A) assess the effectiveness of programs provided under subsection (b) in increasing broadband penetration and purchase in rural areas, especially in those rural communities identified by the Secretary as having no service before award of a broadband loan or loan guarantee under subsection (b);

(B) develop assessments of broadband availability in rural areas, working with existing rural development centers selected by the Center;

(C) identify policies and initiatives at the local, State and Federal level that have increased broadband penetration and purchase in rural areas;

(D) conduct a national study of rural households and businesses focusing on the adoption of, barriers to, and utilization of broadband services; and

(E) provide reports to the public on the activities undertaken under this section.

(5) REPORTING REQUIREMENTS.—The Center shall report by December 1 of each year to the Secretary its activities, the results of its research, and any such information the Secretary may request regarding the prior fiscal year. In reporting to the Secretary the Center shall include the following:

(A) Assessments of the programs provided under subsection (b).

(B) Annual assessments on broadband availability in rural areas under consideration by the Center.

(C) Annual assessments on the effects of the policy initiatives identified in paragraph (2)(C).

(D) Results from the national study of rural households and businesses conducted under paragraph (4)(D).

(6) AUTHORIZATION OF APPROPRIATIONS.—

There are authorized to be appropriated to the Secretary to carry out this subsection not more than $1,000,000 for each of the fiscal years 2008 through 2012.’’.

(h) FUNDING.—Section 601(m) of such Act (7 U.S.C. 950bb(l)) as so redesignated by subsections (e) through (g) of this section, is amended—

(1) by striking paragraph (1);

(2) by redesignating paragraphs (2), (3), and (4) as paragraphs (1), (2), and (3), respectively;

(3) in paragraph (1)(B) (as so redesignated), by striking ‘‘2007’’ and inserting ‘‘2012’’;

(4) in paragraph (2) (as so redesignated), by striking ‘‘2003 through 2007’’ and inserting ‘‘2008 through 2012’’; and

(5) in paragraph (3) (as so redesignated), by adding at the end the following:

(D) ELIGIBLE TRIBAL COMMUNITIES.—

Of the amounts made available under subpara graph (A) for a fiscal year, 10 percent shall be reserved for entities serving eligible tribal communities.

(E) UNOBLIGATED AMOUNTS.—Any amounts in the reserve established for eligible tribal communities for a fiscal year under subparagraph (D) that are not obligated by June of the fiscal year shall be available to the Secretary to make loans and loan guarantees under this section to eligible entities in any State, as determined by the Secretary.’’.

(i) EXTENSION OF AUTHORITY TO ISSUE LOANS.—

Section 601(n) of such Act (7 U.S.C. 950bb(m)), as redesignated by subsections (d) through (f) of this section, is amended by striking ‘‘2007’’ and inserting ‘‘2012’’.

Sec. 6023. Community connect grant program.

(a) ESTABLISHMENT.—The Secretary shall estab lish a grant program to be known as the ‘Community Connect Grant Program’ to provide financial assistance to eligible applicants to provide broadband transmission service that fosters economic growth and delivers enhanced educational, health care, and public safety services.

(b) ELIGIBILITY.—To be eligible for a grant under this section, the applicant must—

(1) be legally organized as an incorporated tribal organization, an Indian tribe, or tribal organization, as defined in subsections (b) and (c) of section 4 of the Indian Self-Determination and Education Assistance Act (25 U.S.C. 450b(b) and (c)), a State or local unit of government, or other legal entity, including a cooperative, private corporation, or limited liability company organized on a for-profit or not-for-profit basis;

(2) have the legal capacity and authority to own and operate broadband facilities as proposed in its application, to enter into contracts, and to otherwise comply with applicable Federal statutes and regulations; or

(3) be in an eligible rural community (as defined in section 601(b)(2) of the Rural Electrification Act of 1936).

(c) INELIGIBLE GRANT PURPOSES.—A grant made under this section may not be used—

(1) to finance the duplication of any broadband transmission service provided by another entity; or

(2) with respect to facilities, to provide local exchange telecommunications service to any person or entity receiving the service.

(d) PRIORITY.—In making grants under this section, the Secretary shall give priority to grants that will enhance community access to telemedicine and distance learning resources.

(e) MATCHING CONTRIBUTIONS.—

(1) IN GENERAL.—To be eligible to receive a grant under subsection (a), a grant applicant shall provide a matching contribution of at least 15 percent of the grant amount requested, in funds and in kind contributions in a proportion to be determined by the Secretary.

(2) LIMITATIONS.—

(A) Costs incurred by or on behalf of an applicant, for facilities, installed equipment, or other services rendered before submission of a completed application shall not be considered to be for an eligible grant purpose or a matching contribution.

(B) Any financial assistance from Federal sources shall not be considered to be a matching contribution for purposes of this section, unless there is a Federal statutory exception specifically authorizing the Federal financial assistance to be so considered.

(f) AUTHORIZATION OF APPROPRIATIONS.—There are authorized to be appropriated to the Secretary to carry out this section not more than $25,000,000 for each of the fiscal years 2008 through 2012.’’.

Sec. 6027. Telemedicine and distance learning services in rural areas.

(a) AUTHORIZATION OF APPROPRIATIONS.—Section 2335A of the Food, Agriculture, Conservation and Trade Act of 1990 (7 U.S.C. 950aaa-5) is amended by striking ‘‘2007’’ and inserting ‘‘2012’’.

(b) CONFORMING AMENDMENT.—Section 1(b) of Public Law 102–551 (7 U.S.C. 950aaa note) is amended by striking ‘‘2007’’ and inserting ‘‘2012’’.

Sec. 6029. Comprehensive rural broadband strategy.

Not later than 180 days after the date of the enactment of this Act, the Secretary of Agriculture shall submit to the President, the Committee on Agriculture of the House of Representatives, and the Committee on Agriculture, Nutrition, and Forestry of the Senate a report describing a comprehensive rural broadband strategy that includes—

(1) recommendations—

(A) to promote interagency coordination of Federal agencies in regards to policies, procedures, and targeted resources, and to improve and streamline the polices, programs, and services;

(B) to coordinate among Federal agencies regarding existing rural broadband or rural initiatives that could be of value to rural broadband development;

(C) to address both short- and long-term solutions and needs assessments for a rapid build-out of rural broadband solutions and applications for Federal, State, regional, and local

government policy makers;

(D) to identify how specific Federal agency programs and resources can best respond to rural broadband requirements and overcome obstacles that currently impede rural broadband

deployment; and

(E) to promote successful model deployments and appropriate technologies being used in rural areas so that State, regional, and local governments can benefit from the cataloging

and successes of other State, regional, and local governments; and

(2) a description of goals and timeframes to achieve the strategic plans and visions identified in the report.

Title VI - Rural Development

Collin Peterson (D-MN) Amendment regarding the manager's amendment language on broadband

Zack Space (D-OH) Amendment regarding the USDA broadband loan program

John T. Salazar (D-CO) Amendment on comprehensive rural broadband strategy:

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