article: SECTION 1. SHORT TITLE. This Act may be cited as the ``Rural Broadband Access Enhancement Act''. SEC. 2. DEFINITION OF ELIGIBLE RURAL COMMUNITY. Section 601(b)(2) of the Rural Electrification Act of 1936 (7 U.S.C. 950bb(b)(2)) is amended to read as follows: ``(2) Eligible rural community.--The term `eligible rural community' means any area of the United States-- ``(A) which is not included within the boundaries of any city, town, borough, or village, whether incorporated or unincorporated, with a population of more than 20,000 inhabitants; ``(B) which is not in the urbanized area contiguous and adjacent to such a city, town, borough, or village; and ``(C) the average median household income of which is not more than 80 percent of the national average median household income.''. SEC. 3. IMPROVEMENTS TO APPLICATION PROCESS. (a) Equity Requirements.--Section 601(c) of the Rural Electrification Act of 1936 (7 U.S.C. 950bb(c)) is amended by adding at the end the following: ``(3) Equity requirements.--The Secretary shall not approve an application submitted pursuant to this section to serve-- ``(A) an area in which at least 40 percent of the population does not have access to broadband service, unless the value of the assets of the applicant not pledged or hypothecated for any other purpose equals at least 10 percent of the principal amount of the loan which is the subject of the application; or ``(B) any other area, unless value of the assets referred to in subparagraph (A) equals at least 15 percent of the principal amount of the loan involved.''. (b) Reduction in Application Paperwork.--Section 601(c) of such Act (7 U.S.C. 950bb(c)), as amended by subsection (a) of this section, is amended by adding at the end the following: ``(4) Paperwork reduction.--The Secretary shall take such steps as are necessary to reduce the paperwork required of applicants under this section.''. (c) Outreach.--Section 601 of such Act (7 U.S.C. 950bb) is amended by redesignating subsections (i) through (k) as subsection (j) through (l), respectively, and inserting after subsection (h) the following: ``(i) Outreach.--The Secretary shall conduct outreach designed to inform the population of areas in which there is no or limited broadband service of the program carried out under this section.''. SEC. 4. BAN ON LOAN OR LOAN GUARANTEE FOR NEW BROADBAND SERVICE IN COMMUNITY WITH SEVERAL SERVICE PROVIDERS. Section 601(c) of the Rural Electrification Act of 1936 (7 U.S.C. 950bb(c)), as amended by section 3 of this Act, is amended by adding at the end the following: ``(5) Ban on loan or loan guarantee for new broadband service in community with 3 or more service providers.--The Secreary shall not approve an application for a loan or loan guarantee under this section for the provision of new broadband service to an eligible rural community in which the service is provided by 3 or more entities.''. SEC. 5. ELIMINATION OF LIMITATION ON ELIGIBILITY BASED ON NUMBER OF SUBSCRIBER LINES. (a) In General.--Section 601(d) of the Rural Electrification Act of 1936 (7 U.S.C. 950bb(d)) is amended by striking paragraph (3). (b) Limitations on Amounts Made Available for Entities With Various Shares of Installed Telephone Suscriber Lines.--Section 601(k) of such Act (7 U.S.C. 950bb(k)), as so redesignated by section 3(c) of this Act, is amended by adding at the end the following: ``(5) Limitations on amounts made available for entities with various shares of installed telephone suscriber lines.-- ``(A) Not more than 10 percent of the amounts made available for each fiscal year under this subsection may be used to provide loans or loan guarantees to entities with more than 10 percent of the telephone subscriber lines installed in the aggregate in the United States. ``(B) Not more than 40 percent of the amounts made available for each fiscal year under this subsection may be used to provide loans or loan guarantees to entities with not less than 2 percent and not more than 10 percent of the telephone subscriber lines installed in the aggregate in the United States.''. SEC. 6. LIMITATION ON TERM OF LOANS AND LOAN GUARANTEES. Section 601(g)(2) of the Rural Electrification Act of 1936 (7 U.S.C. 950bb(g)(2)) is amended by striking ``the useful life of the assets constructed, improved, or acquired with the proceeds of the loan or extension of credit'' and inserting ``35 years''. SEC. 7. REPORTING REQUIREMENTS. Section 601 of the Rural Electrification Act of 1936 (7 U.S.C. 950bb), as amended by section 3(c) of this Act, is amended by redesignating subsections (k) and (l) as subsection (l) and (m), respectively, and inserting after subsection (j) the following: ``(k) Annual Reports.--Not later than October 1 of each year, the Secretary shall submit to the Committee on Agriculture of the House of Representatives and the Committee on Agriculture, Nutrition, and Forestry of the Senate a report on the status of the program under this section, which shall include, with respect to the period covered by the report-- ``(1) the number of applications submitted pursuant to this section; ``(2) the number of the applications that were approved; ``(3) the identity of the communities served by the applicants with approved applications; ``(4) the type of services offered by applicants for, and recipients of, loans or loan guarantees under this section; ``(5) the speed of the broadband service offered by the applicants and recipients; ``(6) how long it took to respond to the applicants; and ``(7) the outreach efforts conducted by the Secretary under subsection (i).''.
summary: Rural Broadband Access Enhancement Act - Amends the Rural Electrification Act of 1936 to redefine "eligible rural community." Permits a loan or loan guarantee applicant in an area where 40% of the residents are without broadband access to qualify with a 10% loan equity position. Provides for: (1) paperwork reduction; and (2) program outreach to underserved areas. Prohibits loan or loan guarantees for new broadband service in communities with three or more service providers. Provides that for each fiscal year: (1) not more than 10% of program funds shall be available to providers with more than 10% of national subscriber lines; and (2) 40% of program funds shall be available to providers with between 2%-10% of national subscriber lines. Revises the amortization period from the life of the asset to 35 years. Requires an annual broadband program report to Congress.