As we addressed in a February 2023 post, RUS requested comments on proposed changes to the audit requirements. This month, RUS published the final rule. The changes apply to RUS borrowers and grantees (now called "Awardees"). The rules apply to
Read RUS publishes final rule on auditSeveral industry groups, including NTCA, NRTC, and NRECA, sent a letter to Congress requesting an increase in the minimum service level commitment for broadband funding under the Farm Bill. They requested an increase to 100 Mbps symmetrical broadband service. We
Read Industry Groups Push for Increased MinimumThis WSJ article discusses the tensions arising from access to poles for broadband expansion. Fights Over Rural America’s Phone Poles Slow Internet Rollout
Read WSJ Article about rural pole accessThe Rural Utilities Service issued a final rule to modify ratio requirements for electric borrowers. The rule is effective May 30, 2023. The Rural Utilities Service (RUS), a Rural Development (RD) agency of the United States Department of Agriculture (USDA), is issuing a final rule with comment. The
Read RUS modifies ratio requirements for electricIn advising cooperatives, C&A Attorney David Cook relies on the attorney-client privilege to protect communications with clients from disclosure to courts, tax authorities, and others. The attorney-client privilege is fundamental to ensuring clients (cooperatives) receive relevant, timely, and helpful tax
Read Cooperative Tax Advice and the Attorney-ClientThe Rural Utilities Service requested comments on a final rule, which will be effective May 8, 2023. The rule concerns audit procedures and other requirements. Here is a summary from RUS: An update to this policy occurred on May 7, 2018
Read RUS Seeks Comment on Audit RulesThe RUS updated its Rural eConnectivity Program rules on January 30, 2023. Here is a summary from the Federal Register: 1. The definition of non-funded service area (NFSA) was updated in § 1740.2 to include telecommunications as well as broadband as a type of service.
Read RUS Updates Rural eConnectivity ProgramThe 2018 Farm Bill amended the Rural Electrification Act of 1936, extending financing authority for RUS loans or guaranties, ending the Cushion of Credit Payment Program, and allowing loans to fund cybersecurity and grid security improvements. Here is a summary
Read RUS regs amended to address cushionA survey conducted by NTCA – The Rural Broadband Association provides insight into broadband and internet service by rural telephone companies. NTCA has conducted the survey for nearly two decades. Based on the survey, 72% of customers in NTCA members’
Read Survey of Rural Broadband ServiceThe Rural Utilities Service has issued a final rule to amend its regulations for Electric and Telecommunications Standards affecting the following: Specifications for Materials and Equipment and Construction Specification for Wood Poles, Stubs, and Anchor Logs Specification for Wood Crossarms,
Read RUS Amends Standards for Timber ProductsOn behalf of C&A, David Cook joined with many rural telcos in “A Call to Action” to demand that broadband policymakers improve USF funding by expanding the services that contribute to the USF. The USF is an important mechanism for
Read C&A joins rural telcos to requestC&A attorney, David Cook, recently spoke to a group of directors of telephone cooperatives about legal risks and privacy concerns. The telephone and telecommunication utilities hailed from several states to North Carolina for the conference. The presentation covered topics related
Read Telephone Cooperative Directors: Legal Risks andEarlier this year, the U.S. Supreme Court addressed an outstanding question in the Telephone Consumer Protection Act. The court clarified the extent of the devices to which the TCPA applies. In summary, the Supreme Court ruled: The question before the
Read Supreme Court Addresses Telephone Consumer ProtectionThe Rural Utilities Service recently amended its regulations for electric borrowers. These amendments affect the loan application requirements, approvals of work plans, contract bidding and approval procedures, system operation and maintenance reviews, long-range engineering, and system-design procedures. Here is a
Read RUS Amends Several Regulations for ElectricAs reported in the Wall Street Journal last week, hackers breached T-Mobile’s system to obtain data for about 54 million people. The hackers then attempted to sell the customer data. The hackers' approach is different than recent instances of ransomware,
Read WSJ: FCC Focusing on Telecommunications CustomerIn March 2021, Congress approved $1.9 trillion under the American Rescue Plan Act (“Act”), which included emergency funding to respond to the pandemic and its economic impact. In May 2021, the Treasury Department released the Interim Final Rule[1] (“IFR”) for
Read American Rescue Plan and BroadbandOn May 28, 2021, the United States Postal Service (USPS) filed notice with the Postal Regulatory Commission (PRC) for rate increases, which will be effective on August 29, 2021. The rate increases range from 5% to 8% for various products
Read The Effect of USPS Rate IncreasesUnder the Digital Millennium Copyright Act (“DMCA”), there are several safe harbors that limit liability of service providers for alleged infringement of copyrighted material. But a service provider must meet several statutory requirements to be eligible for the safe harbor.
Read DMCA Safe Harbor ChecklistA recent publication to the Benton Institute for Broadband & Society explains how cooperatives are “the unsung heroes of broadband.” The following post explains the substance of the publication: Obtaining broadband access has become a necessity, especially now during the COVID-19 Pandemic. Access to broadband for
Read Cooperatives Offering Broadband to Rural America The Texas Public Utilities Commission is cutting the amount of money from a fund that subsidizes rural Texas network services, creating a potential loss of phone and internet services for more than a million Texas homes. For many of these homes, phones service is more
Read Texas Internet and Phone Services atEffective January 12, 2021, the Small Business Administration and the Department of the Treasury issued an Interim Final Rule concerning the Paycheck Protection Program (“PPP”). The rule applies to the second round of PPP loans under the Economic Aid to
Read Telephone and Electric Coops Qualify forAs part of the 2017 tax reform bill, Congress passed new Section 199A, which authorizes a deduction for “specified agricultural or horticultural cooperatives.” As discussed in a subsequent post, Congress enacted Section 199A(g) to limit the 199A deduction based on
Read IRS Issues Sec. 199A Guidance forIn a new ruling, the Service considered the period of historical patronage business that should be used to calculate the gain on a liquidation sale. Coop was a cooperative within the meaning of Subchapter T. It struggled in its market and sold its business to Buyer Corp, including all assets, property, networks
Read New IRS Ruling: The Timing ofDakota Energy has filed a lawsuit concerning its potential exit from a wholesale power supplier, East River Electric. Dakota Energy’s concern is that East River’s bylaws require, as a condition to withdrawal, satisfaction of contractual obligations to East River. And Dakota Energy is currently under a wholesale power contract
Read Potential Exit from Power Supply Cooperative