[Code of Federal Regulations]
[Title 7, Volume 11]
[Revised as of January 1, 2005]
From the U.S. Government Printing Office via GPO Access
[CITE: 7CFR1703.101]

[Page 58-59]
 
                          TITLE 7--AGRICULTURE
 
    CHAPTER XVII--RURAL UTILITIES SERVICE, DEPARTMENT OF AGRICULTURE
 
PART 1703--RURAL DEVELOPMENT--Table of Contents
 
 Subpart D--Distance Learning and Telemedicine Loan and Grant Program--
                                 General
 
Sec. 1703.101   Policy.

    (a) The transmission of information is vital to the economic 
development, education, and health of rural Americans. To further this 
objective, RUS will provide financial assistance to distance learning 
and telemedicine projects that will improve the access of people 
residing in rural areas to educational, learning, training, and health 
care services.
    (b) In providing financial assistance, RUS will give priority to 
rural areas that it believes have the greatest need for distance 
learning and telemedicine services. RUS believes that generally the need 
is greatest in areas that are economically challenged, costly to serve, 
and experiencing outward migration. This program is consistent with the 
provisions of the Telecommunications Act of 1996 that designate 
telecommunications service discounts for schools, libraries, and rural 
health care centers. RUS will take into consideration the community's 
involvement in the proposed project and the applicant's ability to 
leverage grant funds.
    (c) In administering this subpart, RUS will not favor or mandate the 
use of one particular technology over another.
    (d) Rural institutions are encouraged to cooperate with each other, 
with applicants, and with end-users to promote the program being 
implemented under this subpart.
    (e) RUS staff will make diligent efforts to inform potential 
applicants in rural areas of the programs being implemented under this 
subpart.
    (f) The Administrator will provide only loans under this subpart to 
any entity that has received a telecommunications or electric loan under 
the Rural Electrification Act of 1936. Telecommunications and Electric 
borrowers are encouraged to seek a loan under this subpart to bolster 
educational and health care opportunities in the rural communities they 
serve. A borrower receiving a loan shall:
    (1) Make the loan available to entities that qualify as distance 
learning or telemedicine projects satisfying the requirements of this 
subpart, under any terms it so chooses as long as the terms are no more 
stringent than the terms under which it received the financial 
assistance.
    (2) Use the loan to acquire, install, improve, or extend a distance 
learning or telemedicine system referred to in this subpart.
    (g) The Administrator will allocate funds that are appropriated each 
fiscal year for the subparts E, F, and G, of this part respectively. Not 
more than 30 days before the end of the fiscal year, the Administrator 
may transfer any funds not committed to grants in the combination loan 
and grant program to the grant program.

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    (h) Financial assistance may be provided for end user sites. 
Financial assistance may also be provided for hubs located in rural or 
non-rural areas if they are necessary to provide distance learning or 
telemedicine services to rural residents at end user sites.
    (i) The Administrator will publish, at the end of each fiscal year, 
a notice in the Federal Register of all applications receiving financial 
assistance under this subpart. Subject to the provisions of the Freedom 
of Information Act, (5 U.S.C. 552), applications will be available for 
public inspection at the U.S. Department of Agriculture, 1400 
Independence Avenue, SW., Washington, DC, 20250.