Subject: [NEXTEL-1] H.R. 1320, the 'Commercial Enhancement Act

From: Marcel <[email-masked]>
Date: Wed, 26 Mar 2003 15:11:39 -0500

GRESS
                                       1st Session

                                        H. R. 1320

 To amend the National Telecommunications and Information Administration Organization Act
                            to facilitate the reallocation of
                     spectrum from governmental to commercial users.

                             IN THE HOUSE OF REPRESENTATIVES

                                      March 18, 2003

Mr. UPTON (for himself, Mr. TOWNS, Mr. TAUZIN, Mr. BOUCHER, Mr. TERRY, Mr. GREEN of Texas,
                                         and Mr.
 STEARNS) introduced the following bill; which was referred to the Committee on Energy and
                                         Commerce

A BILL

To amend the National Telecommunications and Information Administration Organization Act
to facilitate the reallocation of
spectrum from governmental to commercial users.

Be it enacted by the Senate and House of Representatives of the United States of America
in Congress
assembled,

SECTION 1. SHORT TITLE.

This Act may be cited as the `Commercial Spectrum Enhancement Act'.

SEC. 2. RELOCATION OF ELIGIBLE FEDERAL ENTITIES FOR THE REALLOCATION OF
SPECTRUM FOR COMMERCIAL PURPOSES.

(a) RELOCATION FROM AUCTIONED SPECTRUM- Section 113 of the National Telecommunications and

Information Administration Organization Act (47 U.S.C. 923(g)) is amended--

(1) by redesignating subsection (i) as subsection (j); and

(2) by inserting after subsection (h) the following new subsection:

`(i) RELOCATION OF ELIGIBLE FEDERAL ENTITIES FOR THE REALLOCATION OF SPECTRUM FOR
COMMERCIAL PURPOSES-

`(1) ELIGIBLE FEDERAL ENTITIES- Any Federal entity that operates a Federal Government
station assigned
to a band of frequencies specified in paragraph (2) and that incurs relocation costs
because of the reallocation of
frequencies from Federal use to non-Federal use shall receive payment for such costs from
the Spectrum
Relocation Fund, in accordance with section 118 of this Act, in lieu of receiving
compensation under subsection
(g) of this section. For purposes of this paragraph, Federal power agencies exempted under
subsection (c)(4) that
choose to relocate from the frequencies identified for reallocation pursuant to subsection
(a), are eligible to receive
payment under this paragraph.

`(2) ELIGIBLE FREQUENCIES- The bands of eligible frequencies for purposes of this section
are as follows:

`(A) the 1710-1755 megahertz band; and

`(B) any other band of frequencies reallocated from Federal use to non-Federal use after
January 1, 1995,
that is assigned by competitive bidding pursuant to section 309(j) of the Communications
Act of 1934 (47
U.S.C. 309(j)).

`(3) DEFINITION OF RELOCATION COSTS- For purposes of this subsection, the term `relocation
costs'
means the costs incurred by a Federal entity to achieve comparable capability of systems,
regardless of whether
that capability is achieved by relocating to a new frequency assignment or by utilizing an
alternative technology.
Such costs include--

`(A) the costs of any modification or replacement of equipment, software, facilities,
operating manuals,
training costs, or regulations that are attributable to relocation;

`(B) the costs of all engineering, equipment, software, site acquisition and construction
costs, as well as any
legitimate and prudent transaction expense, including outside consultants, and reasonable
additional costs
incurred by the Federal entity that are attributable to relocation, including increased
recurring costs
associated with the replacement facilities;

`(C) the costs of engineering studies, economic analyses, or other expenses reasonably
incurred in
calculating the estimated relocation costs that are provided to the Commission pursuant to
paragraph (4) of
this subsection;

`(D) the one-time costs of any modification of equipment reasonably necessary to
accommodate
commercial use of such frequencies prior to the termination of the Federal entity's
primary allocation or
protected status, when the eligible frequencies as defined in paragraph (2) of this
subsection are made
available for private sector uses by competitive bidding and a Federal entity retains
primary allocation or
protected status in those frequencies for a period of time after the completion of the
competitive bidding
process; and

`(E) the costs associated with the accelerated replacement of systems and equipment if
such acceleration is
necessary to ensure the timely relocation of systems to a new frequency assignment.

`(4) NOTICE TO COMMISSION OF ESTIMATED RELOCATION COSTS-

`(A) The Commission shall notify the NTIA at least 9 months prior to the commencement of
any auction of
eligible frequencies defined in paragraph (2). At least 6 months prior to the commencement
of any such
auction, the NTIA, on behalf of the Federal entities and after review by the Office of
Management and
Budget, shall notify the Commission of estimated relocation costs and timelines for such
relocation.

`(B) Upon timely request of a Federal entity, the NTIA shall provide such entity with
information regarding
an alternative frequency assignment or assignments to which their radiocommunications
operations could be
relocated for purposes of calculating the estimated relocation costs and timelines to be
submitted

to the Commission pursuant to subparagraph (A).

`(C) To the extent practicable and consistent with national security considerations, the
NTIA shall provide
the information required by subparagraphs (A) and (B) by the geographic location of the
Federal entities'
facilities or systems and the frequency bands used by such facilities or systems.

`(5) IMPLEMENTATION OF PROCEDURES- The NTIA shall take such actions as necessary to ensure
the
timely relocation of Federal entities' spectrum-related operations from frequencies
defined in paragraph (2) to
frequencies or facilities of comparable capability. Upon a finding by the NTIA that a
Federal entity has achieved
comparable capability of systems by relocating to a new frequency assignment or by
utilizing an alternative
technology, the NTIA shall terminate the entity's authorization and notify the Commission
that the entity's
relocation has been completed. The NTIA shall also terminate such entity's authorization
if the NTIA determines
that the entity has unreasonably failed to comply with the timeline for relocation
submitted by the Director of the
Office of Management and Budget under section 118(d)(2)(B).'.

(b) CONFORMING AMENDMENT- Section 113(g)(1)(B) of such Act is amended by striking `A
person' and
inserting `Except as provided in subsection (i) with respect to a relocation from eligible
frequencies described in
paragraph (2) of such subsection, a person'.

SEC. 3. MINIMUM AUCTION RECEIPTS AND DISPOSITION OF PROCEEDS.

(a) AUCTION DESIGN- Section 309(j)(3) of the Communications Act of 1934 (47 U.S.C.
309(j)(3)) is amended--

(1) by striking `and' at the end of subparagraph (D);

(2) by striking the period at the end of subparagraph (E) and inserting `; and'; and

(3) by adding at the end the following new subparagraph:

`(F) for any auction of eligible frequencies described in section 113(i)(2) of the
National
Telecommunications and Information Administration Organization Act (47 U.S.C. 923(i)(2)),
the recovery
of 110 percent of estimated relocation costs as provided to the Commission pursuant to
section 113(i)(4)
of such Act.'.

(b) SPECIAL AUCTION PROVISIONS FOR ELIGIBLE FREQUENCIES- Section 309(j) of such Act is
further
amended by adding at the end the following new paragraph:

`(15) SPECIAL AUCTION PROVISIONS FOR ELIGIBLE FREQUENCIES-

`(A) SPECIAL REGULATIONS- The Commission shall revise the regulations prescribed under
paragraph (4)(F) of this subsection to prescribe methods by which the total cash proceeds
from any
auction of eligible frequencies described in section 113(i)(2) of the National
Telecommunications and
Information Administration Organization Act (47 U.S.C. 923(i)(2)) shall at least equal 110
percent of the
total estimated relocation costs provided to the Commission pursuant to section 113(i)(4)
of such Act.

`(B) CONCLUSION OF AUCTIONS CONTINGENT ON MINIMUM PROCEEDS- The
Commission shall not conclude any auction of eligible frequencies described in section
113(i)(2) of such
Act if the total cash proceeds attributable to such spectrum are less than 110 percent of
the total estimated
relocation costs provided to the Commission pursuant to section 113(i)(4) of such Act. If
the Commission
is unable to conclude an auction for the foregoing reason, the Commission shall cancel the
auction, return
within 45 days after the auction cancellation date any deposits from participating bidders
held in escrow,
and absolve such bidders from any obligation to bid in any subsequent reauction of such
spectrum.

`(C) AUTHORITY TO ISSUE PRIOR TO DEAUTHORIZATION- In any auction conducted under the
regulations required by subparagraph (A), the Commission may grant a license assigned for
the use of
eligible frequencies prior to the termination of an eligible Federal entity's
authorization. However, the
Commission shall condition such license by requiring that the licensee cannot cause
harmful interference to
such Federal entity until such entity's authorization has been terminated by the National
Telecommunications
and Information Administration.'.

(c) DEPOSIT OF PROCEEDS- Paragraph (8) of section 309(j) of the Communications Act of 1934
(47 U.S.C.
309(j)) is amended--

(1) in subparagraph (A), by inserting `or subparagraph (D)' after `subparagraph (B)'; and

(2) by adding at the end the following new subparagraph:

`(D) DISPOSITION OF CASH PROCEEDS- Cash proceeds attributable to the auction of any
eligible
frequencies described in section 113(i)(2) of the National Telecommunications and
Information
Administration Organization Act (47 U.S.C. 923(i)(2)) shall be deposited in the Spectrum
Relocation Fund
established under section 118 of such Act, and shall be available in accordance with that
section.'.

SEC. 4. ESTABLISHMENT OF FUND AND PROCEDURES.

Part B of the National Telecommunications and Information Administration Organization Act
is amended by adding after
section 117 (47 U.S.C. 927) the following new section:

`SEC. 118. SPECTRUM RELOCATION FUND.

`(a) ESTABLISHMENT OF SPECTRUM RELOCATION FUND- There is established on the books of the
Treasury
a separate fund to be known as the `Spectrum Relocation Fund' (in this section referred to
as the `Fund'), which shall be
administered by the Office of Management and

Budget (in this section referred to as `OMB'), in consultation with the NTIA.

`(b) CREDITING OF RECEIPTS- The Fund shall be credited with the amounts specified in
section 309(j)(8)(D) of the
Communications Act of 1934 (47 U.S.C. 309(j)(8)(D)). The proceeds attributable to each
auction of any eligible
frequencies described in section 113(i)(2) of this Act shall be deposited in a separate
account in the Fund.

`(c) USED TO PAY RELOCATION COSTS- The amounts in an account in the Fund from an auction
of eligible
frequencies are authorized to be used to pay relocation costs, as defined in section
113(i)(3) of this Act, of an eligible
Federal entity incurring such costs with respect to relocation from those frequencies.

`(d) FUND AVAILABILITY-

`(1) APPROPRIATION- There are hereby appropriated from the Fund such sums as are required
to pay the
relocation costs specified in subsection (c).

`(2) TRANSFER CONDITIONS- None of the funds provided under this subsection may be
transferred to any
eligible Federal entity--

`(A) unless the Director of OMB has determined, in consultation with the NTIA, the
appropriateness of
such costs and the timeline for relocation; and

`(B) until 30 days after the Director of the Office of Management and Budget has submitted
to the House
and Senate Committees on Appropriations, the House Committee on Energy and Commerce, and
the
Senate Committee on Commerce, Science, and Transportation a detailed plan describing how
the sums
transferred from the Fund will be used to pay relocation costs in accordance with such
subsection and the
timeline for such relocation.

`(3) REVERSION OF UNUSED FUNDS- Any unexpended balances of an account in the Fund that are

remaining after the payment of the relocation costs that are payable from such account
shall revert to and be
deposited in the general fund of the Treasury. Such reversion and deposit shall be made
not later than the end of
the fiscal year in which the NTIA has notified the Commission that all of the entities
whose relocation costs are
payable from such account have either--

`(A) completed their relocation; or

`(B) been determined by NTIA to have unreasonably failed to complete such relocation in
accordance with
the timeline required by paragraph (2)(A).

`(e) TRANSFER TO ELIGIBLE FEDERAL ENTITIES-

`(1) TRANSFER- Amounts made available pursuant to subsection (d) shall be transferred to
eligible Federal
entities, as defined in section 113(i)(1) of this Act. An eligible Federal entity may,
subject to subsection (d)(2) of
this section and the availability of funds in the relevant account, receive more than one
such transfer, but all such
transfers are subject to prior approval by the Director of OMB. Such transferred amounts
shall be credited to the
account of the eligible Federal entity which has incurred, or will incur, such costs, and
shall remain available until
the NTIA has notified the Commission that the Federal entity has completed the relocation,
or the NTIA has
determined that such entity has unreasonably failed to complete such relocation in
accordance with the timeline
required by paragraph (2)(A).

`(2) RETRANSFER TO FUND- An eligible Federal entity that has received such amounts shall
report its
expenditures to OMB and shall transfer any amounts in excess of actual relocation costs
back to the account in
the Fund from which it was transferred immediately after the NTIA has notified the
Commission that the entity's
relocation is complete, or has determined that such entity has unreasonably failed to
complete such relocation in
accordance with the timeline required by paragraph (2)(A).'.

SEC. 5. TELECOMMUNICATIONS DEVELOPMENT FUND.

Section 714(f) of the Communications Act of 1934 (47 U.S.C. 614(f)) is amended to read as
follows:

`(f) LENDING AND CREDIT OPERATIONS- Loans or other extensions of credit from the Fund
shall be made
available to an eligible small business on the basis of--

`(1) the analysis of the business plan of the eligible small business;

`(2) the reasonable availability of collateral to secure the loan or credit extension;

`(3) the extent to which the loan or credit extension promotes the purposes of this
section; and

`(4) other lending policies as defined by the Board.'.

SEC. 6. CONSTRUCTION.

Nothing in this Act is intended to modify section 1062(b) of the National Defense
Authorization Act for Fiscal Year
2000 (Public Law 106-65).

SEC. 7. EXEMPTION FROM SEQUESTRATION.

The Spectrum Relocation Fund shall be exempt from reduction under any order issued under
section 254 of the
Balanced Budget and Emergency Deficit Control Act of 1985, as amended.

SEC. 8. REPORT.

The National Telecommunications and Information Administration shall submit an annual
report to the Committees on
Appropriations and Energy and Commerce of the House of Representatives and the Committees
on Appropriations and
Commerce, Science, and Transportation of the Senate on--

(1) the progress made in adhering to the timelines applicable to relocation from eligible
frequencies required under
section 118(d)(2)(A) of the National Telecommunications and Information Administration
Organization Act,
separately stated on a communication system-by-system basis and on an auction-by-auction
basis; and

(2) with respect to each relocated communication system and auction, a statement of the
estimate of relocation
costs required under section 113(i)(4) of such Act, the actual relocations costs incurred,
and the amount of such
costs paid from the Spectrum Relocation Fund.

http://www.theorator.com/bills108/hr1320.html

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