Last week, the United States Senate passed S.3242, the Access to Capital Creates Economic Strength and Supports (ACCESS) Rural America Act, which is intended to improve broadband access in rural areas by reducing regulatory costs for smaller providers.
The bipartisan bill, sponsored by U.S. Senators Tammy Baldwin (D-WI) and Joni Ernst (R-IA) and known simply as the ACCESS Rural America Act, is now moving to the U.S. House of Representatives.
The ACCESS Rural America Act offers relief to rural telecommunications providers by allowing them to file simplified financial reports with the Securities and Exchange Commission (SEC).
Many of these companies, often the only providers in their regions, face significant financial strain from regulatory expenses and excessive bureaucracy. This measure introduces an exemption from certain SEC public registration and reporting obligations, sparing these providers from costly and unnecessary requirements.
“Federal Securities and Exchange Commission registration and reporting requirements intended for larger, publicly traded firms pose significant challenges for, and can impose substantial burdens on, smaller, locally owned companies with limited resources,” said Shirley Bloomfield, CEO of NTCA–The Rural Broadband Association, in a statement.
“NTCA therefore greatly appreciates the leadership of Senators Baldwin and Ernst in introducing and passing the ACCESS Rural America Act, which will help relieve these burdens and enable small providers to focus more on their core mission of deploying and operating advanced broadband networks in rural areas.”
The bill, according to the federal filing, “increases the shareholder registration threshold for issuers receiving support through federal universal service support mechanisms, which provide communication services to underserved areas. The bill also requires these issuers to make available certain financial information to investors, such as a summary of their consolidated balance sheet.”
Senator Baldwin spoke about the legislation’s desire effect: “For too long, small local providers, often in our rural areas, got caught up in burdensome regulations and it stopped them from reaching more people. My bipartisan bill cuts red tape for our small broadband providers and helps them expand reliable, affordable internet to more families and small businesses across Wisconsin.”
This positive news for rural broadband providers comes in the wake of another senator voicing strong criticisms — and promises of change to come — to the way the National Telecommunications and Information Association (NTIA) is handling the Broadband Equity, Access, and Deployment (BEAD) Program.
