47 U.S.C. § 395 — Assistance for demonstration projects

(a) Authorization for grants and contracts: This subpart's purpose is to promote developing nonbroadcast telecommunications facilities and services that transmit, distribute, and deliver health, education, and public or social service information. The Secretary may make grants to, and sign contracts with, public and private nonprofit agencies, organizations, and institutions to carry out telecommunications demonstrations, once they submit an application in whatever form and with whatever information the Secretary requires by regulation. (b) Application approval: The Secretary may approve an application if the Secretary decides that the project will demonstrate new or innovative methods or techniques for using nonbroadcast telecommunications equipment or facilities that fit this subpart's purpose; the demonstration and related activities will stay under the applicant's own administration and control; the applicant has the management and technical skill to carry out the project; and the facilities and equipment involved will mostly be used to transmit, distribute, and deliver health, education, or public or social service information. (c) Contract with applicant: Once the Secretary approves an application, the Secretary makes a grant to, or signs a contract with, the applicant, for an amount the Secretary decides — but not more than the project's reasonable and necessary cost. The Secretary pays this money from available funds, either in advance or as reimbursement, in installments that match normal practice, as the Secretary determines. (d) Use of funds: Money from this subpart cannot be used to build, remodel, or repair buildings to house facilities or equipment — except that funds may cover minor remodeling that is necessary and incidental to installing the facilities or equipment. (e) "Nonbroadcast telecommunications facilities" defined: For this section, this term includes — but is not limited to — cable television systems, communications satellite systems and their related ground equipment, and other ways of transmitting, sending, or receiving images, sounds, or information by wire, radio, optical, electromagnetic, or other means. (f) Funding: Funding for any demonstration under this subpart cannot last more than 3 years from the date of the original grant or contract. (g) Summary and evaluation: The Secretary must require anyone who gets a grant or contract to submit a summary and evaluation of the demonstration's results at least once a year, for each year they receive funds under this section. (h) Recordkeeping requirements; accessibility: Every recipient must keep records the Secretary needs to carry out the Secretary's duties under this subpart — including records showing how much money was received and how it was spent, the project's total cost, how much of that cost came from other sources, and anything else needed for a proper audit. The Secretary and the Comptroller General (or their authorized representatives) can inspect any of the recipient's books, documents, papers, and records connected to the assistance, for audit purposes. (i) Rules and regulations: The Secretary may make rules and regulations needed to carry out this subpart, including rules about which project applications get priority and how much money each grant should be. (j) Assistance: The Commission (the FCC) may help carry out this subpart however the Secretary asks. The Secretary must closely coordinate with the Commission when doing Secretary duties under this subpart that affect or interest the Commission, and must also closely coordinate with the Corporation on Secretary duties under this subpart that affect or interest the Corporation. (k) Authorization of appropriations: Congress authorized $1,000,000 for each of fiscal years 1979, 1980, and 1981, for the Secretary to carry out this subpart. Money appropriated for a fiscal year stays available to pay grants or contracts for projects whose applications were approved and submitted within one year after that fiscal year ends.