SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Spectrum Auction Act of 1995''.

SEC. 2. FINDINGS.

    The Congress finds that--
            (1) the National Telecommunications and Information 
        Administration of the Department of Commerce recently submitted 
        to the Congress a report entitled ``U.S. National Spectrum 
        Requirements'' as required by section 113 of the National 
        Telecommunications and Information Administration Organization 
        Act (47 U.S.C. 923);
            (2) based on the best available information the report 
        concludes that an additional 179 megahertz of spectrum will be 
        needed within the next ten years to meet the expected demand 
        for land mobile and mobile satellite radio services such as 
        cellular telephone service, paging services, personal 
        communication services, and low earth orbiting satellite 
        communications systems;
            (3) a further 85 megahertz of additional spectrum, for a 
        total of 264 megahertz, is needed if the United States is to 
        fully implement the Intelligent Transportation System currently 
        under development by the Department of Transportation;
            (4) as required by Part B of the National 
        Telecommunications and Information Administration Organization 
        Act (47 U.S.C. 921 et seq.) the Federal Government will 
        transfer 235 megahertz of spectrum from exclusive government 
        use to non-governmental or mixed governmental and non-
        governmental use between 1994 and 2004;
            (5) the Spectrum Reallocation Final Report submitted to 
        Congress by the National Telecommunications and Information 
        Administration states that, of the 235 megahertz of spectrum 
        identified for reallocation from governmental to non-
        governmental or mixed use--
                    (A) 50 megahertz has already been reallocated for 
                exclusive non-governmental use,
                    (B) 45 megahertz will be reallocated in 1995 for 
                both exclusive non-governmental and mixed governmental 
                and non-governmental use,
                    (C) 25 megahertz will be reallocated in 1997 for 
                exclusive non-governmental use,
                    (D) 70 megahertz will be reallocated in 1999 for 
                both exclusive non-governmental and mixed governmental 
                and non-governmental use, and
                    (E) the final 45 megahertz will be reallocated for 
                mixed governmental and non-governmental use by 2004;
            (6) the 165 megahertz of spectrum that are not yet 
        reallocated, combined with 80 megahertz that the Federal 
        Communications Commission is currently holding in reserve for 
        emerging technologies, are less than the best estimates of 
        projected spectrum needs in the United States;
            (7) the authority of the Federal Communications Commission 
        to assign radio spectrum frequencies using an auction process 
        expires on September 30, 1998;
            (8) a significant portion of the reallocated spectrum will 
        not yet be assigned to non-governmental users before that 
        authority expires;
            (9) the transfer of Federal governmental users from certain 
        valuable radio frequencies to other reserved frequencies could 
        be expedited if Federal governmental users are permitted to 
        accept reimbursement for relocation costs from non-governmental 
        users; and
            (10) extension of the authority to use auctions and non-
        governmental reimbursement of Federal governmental users 
        relocation costs would allow the market to determine the most 
        efficient use of the available spectrum.

SEC. 3. EXTENSION AND EXPANSION OF AUCTION AUTHORITY.

    Section 309(j) of the Communications Act of 1934 (47 U.S.C. 309(j)) 
is amended--
            (1) by striking paragraph (1) and inserting in lieu thereof 
        the following:
            ``(1) General authority.--If mutually exclusive 
        applications or requests are accepted for any initial license 
        or construction permit which will involve a use of the 
        electromagnetic spectrum, then the Commission shall grant such 
        license or permit to a qualified applicant through a system of 
        competitive bidding that meets the requirements of this 
        subsection. The competitive bidding authority granted by this 
        subsection shall not apply to licenses or construction permits 
        issued by the Commission for public safety radio services or 
        for licenses or construction permits for new terrestrial 
        digital television services assigned by the Commission to 
        existing terrestrial broadcast licensees to replace their 
        current television licenses.'';
            (2) by striking paragraph (2) and renumbering paragraphs 
        (3) through (13) as (2) through (12), respectively; and
            (3) by striking ``1998'' in paragraph (10), as renumbered, 
        and inserting in lieu thereof ``2002''.
SEC. 4. REIMBURSEMENT OF FEDERAL RELOCATION COSTS.

    Section 113 of the National Telecommunications and Information 
Administration Act (47 U.S.C. 923) is amended by adding at the end the 
following new subsections:
    ``(f) Relocation of Federal Government Stations.--
            ``(1) In general.--In order to expedite the efficient use 
        of the electromagnetic spectrum and notwithstanding section 
        3302(b) of title 31, United States Code, any Federal entity 
        which operates a Federal Government station may accept 
        reimbursement from any person for the costs incurred by such 
        Federal entity for any modification, replacement, or reissuance 
        of equipment, facilities, operating manuals, regulations, or 
        other expenses incurred by that entity in relocating the 
        operations of its Federal Government station or stations from 
        one or more radio spectrum frequencies to any other frequency 
        or frequencies. Any such reimbursement shall be deposited in 
        the account of such Federal entity in the Treasury of the 
        United States. Funds deposited according to this section shall 
        be available, without appropriation or fiscal year limitation, 
        only for the operations of the Federal entity for which such 
        funds were deposited under this section.
            ``(2) Process for relocation.--Any person seeking to 
        relocate a Federal Government station that has been assigned a 
        frequency within a band allocated for mixed Federal and non-
        Federal use may submit a petition for such relocation to NTIA. 
        The NTIA shall limit the Federal Government station's operating 
        license to secondary status when the following requirements are 
        met--
                    ``(A) the person seeking relocation of the Federal 
                Government station has guaranteed reimbursement through 
                money or in-kind payment of all relocation costs 
                incurred by the Federal entity, including all 
                engineering, equipment, site acquisition and 
                construction, and regulatory fee costs;
                    ``(B) the person seeking relocation completes all 
                activities necessary for implementing the relocation, 
                including construction of replacement facilities (if 
                necessary and appropriate) and identifying and 
                obtaining on the Federal entity's behalf new 
                frequencies for use by the relocated Federal Government 
                station (where such station is not relocating to 
                spectrum reserved exclusively for Federal use); and
                    ``(C) any necessary replacement facilities, 
                equipment modifications, or other changes have been 
                implemented and tested to ensure that the Federal 
                Government station is able to successfully accomplish 
                its purposes.
            ``(3) Right to reclaim.--If within one year after the 
        relocation the Federal Government station demonstrates to the 
        Commission that the new facilities or spectrum are not 
        comparable to the facilities or spectrum from which the Federal 
        Government station was relocated, the person seeking such 
        relocation must take reasonable steps to remedy any defects or 
        reimburse the Federal entity for the costs of returning the 
        Federal Government station to the spectrum from which such 
        station was relocated.
    ``(g) Federal Action To Expedite Spectrum Transfer.--Any Federal 
Government station which operates on electromagnetic spectrum that has 
been identified for reallocation for mixed Federal and non-Federal use 
in the Spectrum Reallocation Final Report shall, to the maximum extent 
practicable through the use of the authority granted under subsection 
(f) and any other applicable provision of law, take action to relocate 
its spectrum use to other frequencies that are reserved for Federal use 
or to consolidate its spectrum use with other Federal Government 
stations in a manner that maximizes the spectrum available for non-
Federal use. Notwithstanding the timetable contained in the Spectrum 
Reallocation Final Report, the President shall seek to implement the 
reallocation of the 1710 to 1755 megahertz frequency band by January 1, 
2000. Subsection (c)(4) of this section shall not apply to the extent 
that a non-Federal user seeks to relocate or relocates a Federal power 
agency under subsection (f).
    ``(h) Definitions.--For purposes of this section--
            ``(1) Federal entity.--The term `Federal entity' means any 
        Department, agency, or other element of the Federal Government 
        that utilizes radio frequency spectrum in the conduct of its 
        authorized activities, including a Federal power agency.
            ``(2) Spectrum reallocation final report.--The term 
        `Spectrum Reallocation Final Report' means the report submitted 
        by the Secretary to the President and Congress in compliance 
        with the requirements of subsection (a).''.

SEC. 5. REALLOCATION OF ADDITIONAL SPECTRUM.

    The Secretary of Commerce shall, within 9 months after the date of 
enactment of this Act, prepare and submit to the President and the 
Congress a report and timetable recommending the reallocation of the 
three frequency bands (225-400 megahertz, 3625-3650 megahertz, and 
5850-5925 megahertz) that were discussed but not recommended for 
reallocation in the Spectrum Reallocation Final Report. The Secretary 
shall consult with the Federal Communications Commission and other 
Federal agencies in the preparation of the report, and shall provide 
notice and an opportunity for public comment before submitting the 
report and timetable required by this section.
Spectrum Auction Act of 1995 - Amends the Communications Act of 1934 to state that certain competitive bidding requirements of the Act shall not apply to licenses or construction permits issued by the Federal Communications Commission (FCC) for public safety radio services or for licenses or construction permits for new terrestrial digital television services assigned by the FCC to existing terrestrial broadcast licensees to replace their current television licenses.  Extends through FY 2002 the authority of the FCC to grant such licenses or permits. 
Amends the National Telecommunications and Information Administration (NTIA) Act to authorize any Federal entity which operates a Government station to accept reimbursement from any person for the cost of relocating the operations of such station from one or more radio spectrum frequencies to any other frequency.  Authorizes any person seeking to relocate a Government station that has been assigned a frequency of mixed Federal and non-Federal use to petition for such relocation to the NTIA. Provides relocation requirements.  Allows such a relocated station up to one year to reclaim the former station if it finds the new facilities or spectrum (radio frequency) to be inferior to the former facilities or spectrum.  Provides for the expedited transfer to Federal spectrum use of a station currently on a mixed Federal and non-Federal spectrum, or the consolidation of its spectrum use with other Government stations in a manner that maximizes the spectrum available for non-Federal use.  Directs the President to seek to implement the relocation of the 1710 to 1755 megahertz frequency band by January 1, 2000. 
Directs the Secretary of Commerce to prepare and submit to the President and the Congress a report and timetable for the reallocation of the three frequency bands that were discussed but not recommended for reallocation in the Spectrum Reallocation Final Report.
Spectrum Auction Act of 1995