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[Congressional Bills 112th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4044 Introduced in House (IH)]

112th CONGRESS
  2d Session
                                H. R. 4044

To amend the National Telecommunications and Information Administration 
Organization Act to create a Federal Spectrum Reallocation Commission, 
to provide for the use of a portion of the proceeds from the auction of 
   reallocated Federal spectrum for deficit reduction, and for other 
                               purposes.

_______________________________________________________________________

                    IN THE HOUSE OF REPRESENTATIVES

                           February 15, 2012

  Mr. Kinzinger of Illinois 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 create a Federal Spectrum Reallocation Commission, 
to provide for the use of a portion of the proceeds from the auction of 
   reallocated Federal spectrum for deficit reduction, and for other 
                               purposes.

    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 ``Maximizing Spectrum Efficiency and 
Value Act of 2012''.

SEC. 2. FINDINGS.

    Congress finds the following:
            (1) Demand for electromagnetic spectrum is sharply rising 
        due to the growing advanced network of communications devices 
        that rely on spectrum to transmit and receive information.
            (2) It is necessary for the United States to maintain its 
        investments in innovation of spectrum and broadband 
        infrastructure to ensure the United States is a global leader 
        in the wireless age.
            (3) Spectrum is a finite resource, and in order to spur 
        innovation, the United States must provide for better and more 
        efficient spectrum management.
            (4) Many spectrum holders do not efficiently use their 
        frequency assignments, and a restructuring of the usable 
        spectrum is a viable solution to make up for this lost 
        opportunity.
            (5) Making available additional spectrum to meet the 
        demands of broadband technologies and services will prevent 
        dropped connections, blocked service, decreased connection 
        speed, and even higher prices for certain advanced 
        applications.
            (6) The availability of increased spectrum will allow 
        advanced technologies such as 4G mobile services, high-speed 
        wireless, high definition television, and more to continue 
        operating without network problems and interference.
            (7) The United States public debt totals more than 
        $14,300,000,000,000.
            (8) Congress should look for ways to increase Government 
        revenues without creating additional burdens on taxpayers.
            (9) Auctioning spectrum is the most economically sound 
        method for accurate valuation and assignment of spectrum to 
        develop the next generation of wireless technologies, expand 
        broadband service to underserved areas of the country, develop 
        an interoperable public safety network, and reduce the deficit.
            (10) Recent spectrum auctions in Germany and India raised a 
        combined $20,000,000,000.
            (11) Certain frequencies have substantial market value and 
        could raise almost $30,000,000,000 in a public auction.
            (12) Barriers such as regulatory and administrative delays 
        are not conducive to the free-market approach and can hurt 
        innovation.
            (13) Government spectrum, while extremely important, is 
        vast and should be included in any spectrum reform initiative.

SEC. 3. FEDERAL SPECTRUM REALLOCATION COMMISSION.

    (a) In General.--Part B of title I of the National 
Telecommunications and Information Administration Organization Act (47 
U.S.C. 921 et seq.) is amended by adding at the end the following:

``SEC. 119. FEDERAL SPECTRUM REALLOCATION COMMISSION.

    ``(a) Definitions.--In this section--
            ``(1) the term `appropriate congressional committees' 
        means--
                    ``(A) the Committee on Appropriations of the 
                Senate;
                    ``(B) the Committee on Appropriations of the House 
                of Representatives;
                    ``(C) the Committee on Commerce, Science, and 
                Transportation of the Senate; and
                    ``(D) the Committee on Energy and Commerce of the 
                House of Representatives;
            ``(2) the term `Chairperson' means the chairperson of the 
        Reallocation Commission designated under subsection (b)(3)(B);
            ``(3) the term `Director' means the Director of the 
        Reallocation Commission appointed under subsection (b)(5);
            ``(4) the term `Executive agency' has the meaning given the 
        term in section 105 of title 5, United States Code;
            ``(5) the term `Federal entity' means any department, 
        agency, or other instrumentality of the Federal Government that 
        utilizes a Government station license obtained under section 
        305 of the Communications Act of 1934 (47 U.S.C. 305);
            ``(6) the term `Reallocation Commission' means the Federal 
        Spectrum Reallocation Commission established under subsection 
        (b)(1); and
            ``(7) the term `relocation costs'--
                    ``(A) 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; and
                    ``(B) includes--
                            ``(i) the costs of any modification or 
                        replacement of equipment, software, facilities, 
                        operating manuals, training costs, or 
                        regulations that are attributable to 
                        relocation;
                            ``(ii) 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;
                            ``(iii) the costs of engineering studies, 
                        economic analyses, or other expenses reasonably 
                        incurred in calculating the estimated 
                        relocation costs that are provided to the 
                        Commission under subsection (e)(1)(C) and 
                        approved by the Director of the Office of 
                        Management and Budget under subsection 
                        (e)(1)(D);
                            ``(iv) the one-time costs of any 
                        modification of equipment reasonably necessary 
                        to accommodate commercial use of reallocated 
                        frequencies prior to the termination of the 
                        Federal entity's primary allocation or 
                        protected status, when the frequencies 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
                            ``(v) 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.
    ``(b) Establishment and Operation of Reallocation Commission.--
            ``(1) Establishment.--There is established an independent 
        commission to be known as the `Federal Spectrum Reallocation 
        Commission'.
            ``(2) Duties.--The Reallocation Commission shall carry out 
        the duties described in this section.
            ``(3) Membership.--
                    ``(A) Appointments.--
                            ``(i) In general.--The Reallocation 
                        Commission shall be composed of 9 members 
                        appointed by the President, with the advice and 
                        consent of the Senate.
                            ``(ii) Requirements for membership.--
                                    ``(I) In general.--Of the 9 members 
                                appointed by the President under clause 
                                (i)--
                                            ``(aa) not more than 1 
                                        member may be a current 
                                        employee or contractor of the 
                                        Department of Defense;
                                            ``(bb) not more than 1 
                                        member may be former employee 
                                        or contractor of the Department 
                                        of Defense;
                                            ``(cc) not fewer than 1 
                                        member shall be a 
                                        representative of the 
                                        commercial mobile technology 
                                        industry; and
                                            ``(dd) not fewer than 1 
                                        member shall be a 
                                        representative from a 
                                        standards-setting body that is 
                                        accredited by the American 
                                        National Standards Institute to 
                                        develop voluntary industry 
                                        standards.
                                    ``(II) Private-sector 
                                representation.--In making appointments 
                                under clause (i), the President shall 
                                ensure that there is robust private-
                                sector representation on the 
                                Reallocation Commission.
                            ``(iii) Transmission of nominations.--Not 
                        later than 180 days after the date of enactment 
                        of this section, the President shall transmit 
                        to the Senate the nominations for appointment 
                        to the Commission.
                            ``(iv) Consultation.--In selecting 
                        individuals for nominations for appointments to 
                        the Reallocation Commission, the President 
                        shall consult with--
                                    ``(I) the Speaker of the House of 
                                Representatives concerning the 
                                appointment of 3 members;
                                    ``(II) the majority leader of the 
                                Senate concerning the appointment of 3 
                                members;
                                    ``(III) the minority leader of the 
                                House of Representatives concerning the 
                                appointment of 1 member; and
                                    ``(IV) the minority leader of the 
                                Senate concerning the appointment of 1 
                                member.
                            ``(v) Nonpolitical nature of appointment.--
                        No political test or qualification may be used 
                        in selecting, appointing, promoting, or taking 
                        other personnel actions with respect to 
                        members, officers, agents, or employees of the 
                        Reallocation Commission.
                    ``(B) Chairperson.--At the time the President 
                nominates individuals for appointments under 
                subparagraph (A), the President shall designate 1 of 
                the individuals nominated to serve as the Chairperson 
                of the Reallocation Commission.
                    ``(C) Terms.--
                            ``(i) In general.--Each member of the 
                        Reallocation Commission may serve until the 
                        Commission sunsets under paragraph (12).
                            ``(ii) Chairperson.--The Chairperson may 
                        serve until the confirmation of a successor.
                            ``(iii) Vacancies.--Any vacancy in the 
                        Reallocation Commission shall be filled in the 
                        same manner as the original appointment.
                    ``(D) Compensation of members.--
                            ``(i) In general.--Each member of the 
                        Reallocation Commission, other than the 
                        Chairperson, shall be paid at a rate equal to 
                        the daily equivalent of the minimum annual rate 
                        of basic pay payable for level IV of the 
                        Executive Schedule under section 5315 of title 
                        5, United States Code, for each day (including 
                        travel time) during which the member is engaged 
                        in the actual performance of duties vested in 
                        the Reallocation Commission.
                            ``(ii) Chairperson.--The Chairperson shall 
                        be paid for each day referred to in clause (i) 
                        at a rate equal to the daily equivalent of the 
                        minimum annual rate of basic pay payable for 
                        level III of the Executive Schedule under 
                        section 5314 of title 5, United States Code.
            ``(4) Meetings.--
                    ``(A) In general.--Each meeting of the Reallocation 
                Commission, other than meetings in which classified 
                information is to be discussed, shall be open to the 
                public.
                    ``(B) Access to information.--All of the 
                proceedings, information, and deliberations of the 
                Commission shall be open, upon request, to--
                            ``(i) the Chairman and the ranking member 
                        of the Subcommittee on Communications, 
                        Technology, and the Internet of the Committee 
                        on Commerce, Science, and Transportation of the 
                        Senate, or such other members of the 
                        Subcommittee designated by the Chairman or 
                        ranking member of the Subcommittee;
                            ``(ii) the Chairman and the ranking member 
                        of the Subcommittee on Communications and 
                        Technology of the Committee on Energy and 
                        Commerce of the House of Representatives, or 
                        such other members of the Subcommittee 
                        designated by the Chairman or ranking member of 
                        the Subcommittee; and
                            ``(iii) the Chairmen and ranking members of 
                        the Subcommittees on Commerce, Justice, 
                        Science, and Related Agencies and on Financial 
                        Services and General Government of the 
                        Committees on Appropriations of the Senate and 
                        of the House of Representatives, or such other 
                        members of the Subcommittees designated by such 
                        Chairmen or ranking members.
            ``(5) Director of staff.--
                    ``(A) In general.--The Reallocation Commission 
                shall, without regard to the provisions of title 5, 
                United States Code, governing appointments in the 
                competitive service, appoint a Director.
                    ``(B) Pay.--The Director shall, without regard to 
                the provisions of chapter 51 and subchapter III of 
                chapter 53 of such title (relating to classification 
                and General Schedule pay rates), be paid at the rate of 
                basic pay payable for level IV of the Executive 
                Schedule under section 5315 of title 5, United States 
                Code.
            ``(6) Staff.--
                    ``(A) In general.--Subject to subparagraphs (B) and 
                (C), the Director, with the approval of the 
                Reallocation Commission, may appoint and fix the pay of 
                additional personnel as may be necessary to enable the 
                Reallocation Commission to perform the duties of the 
                Reallocation Commission.
                    ``(B) Limitation.--The Director may make such 
                appointments without regard to the provisions of title 
                5, United States Code, governing appointments in the 
                competitive service, and any personnel so appointed may 
                be paid without regard to the provisions of chapter 51 
                and subchapter III of chapter 53 of that title relating 
                to classification and General Schedule pay rates, 
                except that an individual appointed under this 
                paragraph may not receive pay in excess of the annual 
                rate of basic pay payable for GS-18 of the General 
                Schedule.
                    ``(C) Detail of government employees.--Upon request 
                of the Director, the Secretary may detail any of the 
                personnel of the Department of Commerce to the 
                Reallocation Commission to assist the Reallocation 
                Commission in carrying out its duties.
                    ``(D) GAO agreement.--The Comptroller General of 
                the United States shall provide assistance, including 
                the detailing of employees, to the Reallocation 
                Commission in accordance with an agreement entered into 
                with the Reallocation Commission.
            ``(7) Procurement of temporary and intermittent services.--
        The Chairperson may procure temporary and intermittent services 
        under section 3109 of title 5, United States Code, at rates for 
        individuals which do not exceed the daily equivalent of the 
        annual rate of basic pay prescribed for level V of the 
        Executive Schedule under section 5316 of such title.
            ``(8) Property.--The Chairperson may lease space and 
        acquire personal property to the extent funds are available.
            ``(9) Postal and printing services.--The Reallocation 
        Commission may use the United States mails and obtain printing 
        and binding services in the same manner and under the same 
        conditions as other agencies of the United States.
            ``(10) Obtaining information.--The Reallocation Commission 
        may secure directly from any agency or department of the United 
        States information necessary to enable it to carry out its 
        duties under this section. Upon request of any member of the 
        Reallocation Commission, the head of that agency or department 
        shall furnish that information to the Reallocation Commission 
        in a full and timely manner.
            ``(11) Funding.--There are authorized to be transferred to 
        the Reallocation Commission $13,000,000 from the Spectrum 
        Relocation Fund established under section 118 to carry out the 
        duties of the Reallocation Commission under this section, and 
        such funds shall remain available until the term of the 
        Reallocation Commission sunsets under paragraph (12). The funds 
        remaining after the sunset of the Commission shall be returned 
        to the Treasury for the sole purpose of deficit reduction.
            ``(12) Sunset.--This subsection is repealed effective 60 
        days after the President approves the recommendations of the 
        Reallocation Commission pursuant to subsection (d)(4).
    ``(c) Spectrum Utilization Plan.--
            ``(1) In general.--As part of the budget justification 
        documents submitted to Congress in support of the budget for 
        each fiscal year, the head of each Federal entity shall include 
        a spectrum utilization plan.
            ``(2) Contents.--A spectrum utilization plan submitted 
        under paragraph (1) shall include--
                    ``(A) the total spectrum authorized for the entity 
                (in percentage terms and in sum) in each band the 
                entity uses;
                    ``(B) the approximate number of transmitters, end-
                user terminals, or receivers, excluding unintended 
                radiators, that have been deployed by the entity or 
                authorized to be used by the entity;
                    ``(C) if such information is available--
                            ``(i) the type of transmitters, end-user 
                        terminals, or receivers, excluding unintended 
                        radiators, operated by the entity and whether 
                        they are space-, air-, or ground-based;
                            ``(ii) the type of transmitters, end-user 
                        terminals, or receivers, excluding unintended 
                        radiators, authorized to be operated by the 
                        entity and whether they are space-, air-, or 
                        ground-based;
                            ``(iii) contour maps or other information 
                        that illustrate the coverage area, receiver 
                        performance, and other parameters relevant to 
                        an assessment of the availability of spectrum 
                        in each band used by the entity;
                            ``(iv) the approximate geolocation of base 
                        stations or fixed transmitters used by the 
                        entity;
                            ``(v) the approximate extent of use, by 
                        geography, of each band of frequencies used by 
                        the entity, such as the amount and percentage 
                        of time of use, number of end-users, or other 
                        measures as appropriate to the particular band;
                            ``(vi) the activities, capabilities, 
                        functions, or missions supported by the 
                        transmitters, end-user terminals, or receivers 
                        used by the entity; and
                            ``(vii) the types of unlicensed devices 
                        authorized to be operated by the entity;
                    ``(D) the opportunity cost borne by the entity for 
                each spectrum band the entity uses;
                    ``(E) the planned uses of technologies or expanded 
                services requiring spectrum for a period of time agreed 
                to by the entity; and
                    ``(F) suggested spectrum-efficient approaches to 
                meeting the spectrum requirements identified under 
                subparagraph (E).
            ``(3) Requirement.--The head of each Federal entity 
        required to submit a spectrum utilization plan under paragraph 
        (1) shall submit a copy of each plan submitted under such 
        paragraph to the Reallocation Commission, the Secretary, and 
        the NTIA.
            ``(4) National security; classified information.--
                    ``(A) National security.--If the head of a Federal 
                entity determines that disclosure of information 
                required under paragraph (1) would be harmful to the 
                national security of the United States, such head 
                shall--
                            ``(i) notify the Secretary of such 
                        determination; and
                            ``(ii) provide to the Secretary--
                                    ``(I) the other publicly releasable 
                                information required by paragraph (1);
                                    ``(II) to the maximum extent 
                                practicable, a summary description of 
                                the information with respect to which 
                                the determination was made; and
                                    ``(III) an annex containing the 
                                information with respect to which the 
                                determination was made.
                    ``(B) Classified information.--If the head of a 
                Federal entity determines that any information required 
                by paragraph (1) is classified in accordance with 
                Executive Order 13526 of December 29, 2009, or any 
                successor Executive order establishing or modifying the 
                uniform system for classifying, safeguarding, and 
                declassifying national security information, such head 
                shall--
                            ``(i) notify the Secretary of such 
                        determination; and
                            ``(ii) provide to the Secretary--
                                    ``(I) the information required by 
                                paragraph (1) that is not classified;
                                    ``(II) to the maximum extent 
                                practicable, a summary description of 
                                the information that is classified; and
                                    ``(III) an annex containing the 
                                information that is classified.
                    ``(C) Annex restriction.--The Secretary shall make 
                an annex described in subparagraph (A)(ii)(III) or 
                (B)(ii)(III) available to the NTIA and the Relocation 
                Commission. The NTIA, the Secretary, and the Relocation 
                Commission shall not make any such annex available to 
                the public or to any unauthorized person through any 
                means.
    ``(d) Procedure for Making Recommendations for Spectrum 
Reallocation.--
            ``(1) Recommendations by secretary of commerce.--Not later 
        than 18 months after the President submits the budget documents 
        that include spectrum utilization plans described in subsection 
        (c) to Congress for the first fiscal year following the date of 
        enactment of this section, the Secretary shall prepare and 
        submit to the appropriate congressional committees, the 
        Comptroller General of the United States, and the Reallocation 
        Commission a report identifying and recommending for 
        reallocation bands of frequencies--
                    ``(A) that are allocated on a primary basis for 
                Federal Government use;
                    ``(B) that--
                            ``(i) are not required for the needs of the 
                        Federal Government at the time the report is 
                        submitted; or
                            ``(ii) will not be required for such needs 
                        in the identifiable future; and
                    ``(C) that can feasibly be made available, as of 
                the date of submission of the report or at any time 
                during the 5-year period beginning on such date, for 
                assignment through a system of competitive bidding 
                under section 309(j) of the Communications Act of 1934 
                (47 U.S.C. 309(j)).
            ``(2) Criteria for identification.--
                    ``(A) Needs of the federal government.--In 
                determining whether a band of frequencies meets one of 
                the criteria specified in paragraph (1)(B), the 
                Secretary shall--
                            ``(i) consider whether the band of 
                        frequencies is used to provide a communications 
                        service that is or could be available from a 
                        commercial provider or other vendor, or whether 
                        the communications services provided on such 
                        frequencies could be relocated to other 
                        frequencies used by the Federal Government;
                            ``(ii) seek to promote--
                                    ``(I) the maximum practicable 
                                reliance on commercially available 
                                substitutes;
                                    ``(II) the efficient use of 
                                spectrum by Federal Government 
                                stations;
                                    ``(III) the development and use of 
                                new communications technologies; and
                                    ``(IV) the use of nonradiating 
                                communications systems where 
                                practicable; and
                            ``(iii) seek to avoid--
                                    ``(I) serious degradation of 
                                Federal Government services and 
                                operations;
                                    ``(II) excessive costs to the 
                                Federal Government and users of Federal 
                                Government services; and
                                    ``(III) excessive disruption of 
                                existing use of Federal Government 
                                frequencies by amateur radio licensees.
                    ``(B) Direct discussions.--
                            ``(i) In general.--The Secretary shall 
                        encourage and provide opportunities for direct 
                        discussions among commercial representatives 
                        and Federal Government users of the spectrum to 
                        aid the Secretary in determining which 
                        frequencies to recommend for reallocation under 
                        paragraph (1).
                            ``(ii) Hearings and public comment.--As 
                        part of the discussions required under clause 
                        (i), the Secretary shall conduct public 
                        hearings and accept public comment on the 
                        recommendations. All testimony before the 
                        Secretary at a public hearing conducted under 
                        this clause shall be presented under oath. All 
                        testimony and public comments collected under 
                        this clause shall be made available on a public 
                        website.
                            ``(iii) Representation.--A representative 
                        of the Reallocation Commission, and of the 
                        Secretary at the election of the Secretary, may 
                        attend any discussion held under clause (i).
                            ``(iv) Further comment.--The Secretary 
                        shall provide the public and the Reallocation 
                        Commission with an opportunity to comment on 
                        the results of a discussion held under clause 
                        (i) before the Secretary submits the 
                        recommendation required under paragraph (1).
            ``(3) Review and recommendations by the reallocation 
        commission.--
                    ``(A) Review.--
                            ``(i) In general.--After receiving the 
                        recommendations from the Secretary under 
                        paragraph (1), the Reallocation Commission 
                        shall review and analyze the recommendations.
                            ``(ii) Hearings.--As part of the review and 
                        analysis required under clause (i), the 
                        Reallocation Commission shall conduct public 
                        hearings on the recommendations. All testimony 
                        before the Reallocation Commission at a public 
                        hearing conducted under this clause shall be 
                        presented under oath.
                    ``(B) Recommendations.--
                            ``(i) In general.--Not later than 180 days 
                        after the Secretary submits recommendations 
                        under paragraph (1) to the Reallocation 
                        Commission, the Reallocation Commission shall 
                        submit to the President and the appropriate 
                        congressional committees a report on the 
                        findings and conclusions of the Reallocation 
                        Commission from the review and analysis 
                        conducted under subparagraph (A), including any 
                        recommendations for Federal spectrum 
                        reallocation.
                            ``(ii) Requirement.--A report submitted 
                        under clause (i) shall contain an explanation 
                        and justification of any recommendation for 
                        Federal spectrum reallocation included in the 
                        report that is different from the 
                        recommendations submitted by the Secretary 
                        under paragraph (1).
                    ``(C) Transmission of information to congress.--
                After the Reallocation Commission submits 
                recommendations to the President under subparagraph 
                (B), upon request by a Member of Congress, the 
                Reallocation Commission shall provide to the Member of 
                Congress any information used by the Reallocation 
                Commission in making the recommendations.
                    ``(D) GAO requirements.--The Comptroller General of 
                the United States shall--
                            ``(i) assist the Reallocation Commission, 
                        to the extent requested, in the review and 
                        analysis under subparagraph (A); and
                            ``(ii) not later than 90 days after the 
                        Secretary makes recommendations under paragraph 
                        (1), submit to Congress and to the Reallocation 
                        Commission a report that contains a detailed 
                        analysis of the recommendations and selection 
                        process of the Secretary.
            ``(4) Review by the president.--
                    ``(A) In general.--Not later than 30 days after the 
                Reallocation Commission submits recommendations for 
                Federal spectrum reallocation under paragraph (3)(B), 
                the President shall--
                            ``(i) determine whether to approve the 
                        recommendations made by the Reallocation 
                        Commission; and
                            ``(ii) submit to Congress and the 
                        Reallocation Commission a report that describes 
                        the determination made under clause (i).
                    ``(B) Approval.--If the President approves the 
                recommendations under subparagraph (A)(i), the 
                President shall transmit a copy of the recommendations 
                to Congress.
                    ``(C) Disapproval.--
                            ``(i) In general.--If the President 
                        disapproves the recommendations under 
                        subparagraph (A)(i), the President shall submit 
                        to Congress and to the Reallocation Commission 
                        a report that describes the reasons that the 
                        President disapproves of the recommendations.
                            ``(ii) Reallocation commission revisions.--
                        Not later than 60 days after the President 
                        submits to the Reallocation Commission a report 
                        under clause (i), the Reallocation Commission 
                        shall submit to the President a revised list of 
                        recommendations for reallocation of Federal 
                        spectrum.
                            ``(iii) Approval and disapproval of 
                        revisions.--
                                    ``(I) Approval.--If the President 
                                approves the revised list of 
                                recommendations submitted by the 
                                Reallocation Commission under clause 
                                (ii), the President shall submit the 
                                revised list to Congress.
                                    ``(II) Disapproval.--If the 
                                President disapproves the revised list 
                                of recommendations submitted by the 
                                Reallocation Commission under clause 
                                (ii), the President and the 
                                Reallocation Commission shall complete 
                                the requirements described in clauses 
                                (i) and (ii) until the President 
                                approves recommendations from the 
                                Reallocation Commission.
            ``(5) Public disclosure and nondisclosure.--
                    ``(A) In general.--If the head of an Executive 
                agency or Federal entity, the Chairperson, or the 
                President determines that public disclosure of any 
                information contained in the reports, recommendations, 
                testimony, or comments required under this section 
                would reveal classified national security information 
                or other information for which there is a legal basis 
                for nondisclosure and such public disclosure would be 
                detrimental to national security, homeland security, or 
                public safety or would jeopardize law enforcement 
                investigations, the head of the Executive agency or 
                Federal entity, the Chairperson, or the President shall 
                notify the Secretary of that determination prior to 
                release of such information.
                    ``(B) Annex.--
                            ``(i) In general.--If the head of an 
                        Executive agency or Federal entity, the 
                        Chairperson, or the President notified the 
                        Secretary of a determination under subparagraph 
                        (A), the information required to be disclosed 
                        under this section shall be included in a 
                        separate classified annex, as needed.
                            ``(ii) Requirement.--A classified annex 
                        described under clause (i)--
                                    ``(I) shall be provided to the 
                                subcommittees of primary jurisdiction 
                                of the committees of primary 
                                jurisdiction of the Senate and House of 
                                Representatives in accordance with 
                                appropriate national security 
                                stipulations; and
                                    ``(II) shall not be disclosed to 
                                the public or provided to any 
                                unauthorized person through any means.
    ``(e) Reallocation of Federal Spectrum.--
            ``(1) Agency action.--
                    ``(A) NTIA requirement.--Not later than 180 days 
                after the date on which the President submits approved 
                recommendations for the reallocation of Federal 
                spectrum to Congress under subparagraph (B) or 
                (C)(iii)(I) of subsection (d)(4), the NTIA shall 
                provide to each Federal entity that is required to take 
                action under the recommendations information regarding 
                an alternative frequency assignment to which the radio 
                communications operations of the Federal entity could 
                be relocated for purposes of calculating the estimated 
                relocation costs and timeline required under 
                subparagraph (C).
                    ``(B) Requirement.--To the extent practicable and 
                consistent with national security considerations, the 
                NTIA shall provide the information described in 
                subparagraph (A) by the geographic location of the 
                facilities or systems of the Federal entity and the 
                frequency bands used by the facilities or systems.
                    ``(C) Implementation plan.--
                            ``(i) In general.--Not later than 1 year 
                        after the date on which the President submits 
                        approved recommendations for the reallocation 
                        of Federal spectrum to Congress under 
                        subparagraph (B) or (C)(iii)(I) of subsection 
                        (d)(4), the head of each Federal entity 
                        required to relocate spectrum under the 
                        recommendations shall prepare and submit to the 
                        President, the appropriate congressional 
                        committees, the NTIA, the Federal 
                        Communications Commission, the Director of the 
                        Office of Management and Budget, and the 
                        Comptroller General of the United States a plan 
                        for implementation of the recommendations 
                        related to the Federal entity.
                            ``(ii) Contents.--An implementation plan 
                        submitted under clause (i) shall include--
                                    ``(I) a description of how the 
                                Federal entity will comply with the 
                                approved recommendations for the 
                                reallocation of Federal spectrum 
                                submitted to Congress under 
                                subparagraph (B) or (C)(iii)(I) of 
                                subsection (d)(4);
                                    ``(II) any statutory or regulatory 
                                barriers that will prohibit the Federal 
                                entity from complying with the 
                                recommendations described in subclause 
                                (I);
                                    ``(III) the estimated cost to the 
                                Federal entity of frequency withdrawal 
                                or relocation; and
                                    ``(IV) the estimated timeline of 
                                the Federal entity for frequency 
                                withdrawal or relocation.
                    ``(D) Review of implementation plan.--
                            ``(i) In general.--Not later than 30 days 
                        after the date on which the plan is submitted 
                        under subparagraph (C), the Director of the 
                        Office of Management and Budget shall review 
                        the implementation plan and determine whether 
                        to approve the plan.
                            ``(ii) Disapproval.--If an implementation 
                        plan submitted under subparagraph (C) is 
                        disapproved by the Director of the Office of 
                        Management and Budget, the Federal entity shall 
                        submit a revised implementation plan under such 
                        subparagraph, and the submission and review 
                        process shall continue until an implementation 
                        plan is approved.
                            ``(iii) Approval of all plans.--Not later 
                        than 7 days after the date on which the 
                        Director of the Office of Management and Budget 
                        approves the plans submitted under subparagraph 
                        (C), the Director shall notify the Federal 
                        Communications Commission of the estimated 
                        relocation costs and timelines of all Federal 
                        entities required to submit a plan under such 
                        subparagraph.
                            ``(iv) Review of progress.--At the 
                        beginning of each fiscal year following 
                        approval of a plan required under subparagraph 
                        (C), the Director of the Office of Management 
                        and Budget shall review the progress of the 
                        Federal entity in meeting the cost and 
                        timelines of the implementation plan. If, at 
                        any point, the Director determines the Federal 
                        entity will not meet the implementation plan 
                        timelines or cost, the Director shall take 
                        action to enforce the approved plan.
                    ``(E) Compliance.--
                            ``(i) Initiation of required action.--Not 
                        later than 2 years after the date on which the 
                        President submits approved recommendations for 
                        the reallocation of Federal spectrum to 
                        Congress under subparagraph (B) or (C)(iii)(I) 
                        of subsection (d)(4), the head of each Federal 
                        entity shall initiate all such actions required 
                        to comply with the approved recommendations.
                            ``(ii) Completion of required action.--Not 
                        later than 5 years after the date on which the 
                        President submits approved recommendations for 
                        the reallocation of Federal spectrum to 
                        Congress under subparagraph (B) or (C)(iii)(I) 
                        of subsection (d)(4), the head of each Federal 
                        entity shall complete all such actions required 
                        to comply with the approved recommendations.
            ``(2) Congressional disapproval.--
                    ``(A) In general.--No Federal entity may initiate 
                any action in accordance with the approved 
                recommendations for the reallocation of Federal 
                spectrum submitted to Congress by the President under 
                subparagraph (B) or (C)(iii)(I) of subsection (d)(4) if 
                there is enacted a joint resolution disapproving the 
                recommendations before the earlier of--
                            ``(i) the end of the 45-day period 
                        beginning on the date on which the President 
                        submits the recommendations to Congress under 
                        subparagraph (B) or (C)(iii)(I) of subsection 
                        (d)(4); or
                            ``(ii) the adjournment of Congress sine die 
                        for the session during which the 
                        recommendations described in clause (i) are 
                        submitted.
                    ``(B) Computation of time period.--The days on 
                which either the Senate or the House of Representatives 
                is not in session because of an adjournment for more 
                than 3 days to a day certain shall be excluded in the 
                computation of the time period described in 
                subparagraph (A)(i).
            ``(3) Notification of successful relocation.--The President 
        shall terminate the authorization of a Federal entity and 
        notify the Secretary and the Federal Communications Commission 
        of the termination if--
                    ``(A) the NTIA determines that a Federal entity has 
                achieved comparable capability of systems by relocating 
                to a new frequency assignment or by utilizing an 
                alternative technology; or
                    ``(B) the Federal entity has unreasonably failed to 
                comply with the timeline for relocation approved by the 
                Director of the Office of Management and Budget under 
                paragraph (1)(D).
    ``(f) Auction of Available Frequencies.--
            ``(1) In general.--Not later than 18 months after the date 
        on which the President submits approved recommendations for the 
        reallocation of Federal spectrum to Congress under subparagraph 
        (B) or (C)(iii)(I) of subsection (d)(4), the Federal 
        Communications Commission shall establish rules for the conduct 
        of auctions of frequencies that will be made available 
        according to such recommendations for assignment of new initial 
        licenses subject to new service rules or for other purposes.
            ``(2) Requirement.--In promulgating rules under paragraph 
        (1), the Federal Communications Commission shall--
                    ``(A) minimize the cost to the taxpayer of the 
                transition of the spectrum to be auctioned to its newly 
                identified use; and
                    ``(B) ensure that any licensing conditions 
                established are restricted to interference protections 
                and ethical, geographic, and financial qualifications 
                of licensees.
            ``(3) Schedule for auctions.--Not later than 2 years after 
        the date on which the President submits approved 
        recommendations for the reallocation of Federal spectrum to 
        Congress under subparagraph (B) or (C)(iii)(I) of subsection 
        (d)(4), the Federal Communications Commission shall commence 
        auctions under this subsection.
    ``(g) Relocation of Federal Government Stations.--
            ``(1) Relocation costs.--Any Federal entity that operates a 
        Federal Government station assigned to a band of frequencies 
        and that incurs relocation costs because of the reallocation of 
        frequencies from Federal use to non-Federal use pursuant to 
        this section shall receive payment for such costs from the 
        Spectrum Relocation Fund, in accordance with section 118.
            ``(2) Federal action to expedite spectrum transfer.--Any 
        Federal Government station which operates on electromagnetic 
        spectrum that has been identified in the approved 
        recommendations for the reallocation of Federal spectrum 
        submitted to Congress by the President under subparagraph (B) 
        or (C)(iii)(I) of subsection (d)(4) shall, to the maximum 
        extent practicable through the use of the authority granted 
        under this section and any other applicable provision of law, 
        take action to relocate its spectrum use to other frequencies 
        that are allocated 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.
            ``(3) Failure to comply.--If a Federal entity does not 
        comply with the timeline established in the implementation plan 
        of the entity that was approved under subsection (e)(1)(D), 
        Congress may decrease the amount appropriated to the entity in 
        the following fiscal year by up to \1/2\ of 1 percent.
            ``(4) Equipment upgrades for department of defense.--If a 
        band of frequencies assigned to the Department of Defense is 
        reallocated from Federal use to non-Federal use pursuant to 
        this section, the relocation costs for which the Department may 
        receive payment from the Spectrum Relocation Fund under section 
        118 shall include the costs of replacement with state-of-the-
        art equipment of any of the equipment used for relocated 
        operations, whether or not such replacement is necessary to 
        achieve comparable capability of systems, if the Secretary of 
        Defense considers such replacement appropriate.
    ``(h) Treatment of Certain Spectrum Subject to Other Reallocation 
Processes.--In the case of spectrum that has been identified for 
reallocation, is in the process of being reallocated, or has been 
reallocated from Federal to non-Federal use under any other provision 
of law or administrative process, but with respect to relocation from 
which the Federal entity being relocated has not received payment for 
relocation costs, such spectrum shall be treated as spectrum allocated 
for Federal use that may be recommended for reallocation by the 
Secretary, the Reallocation Commission, or the President under this 
section.''.
    (b) Technical and Conforming Amendments.--
            (1) Auction proceeds.--Section 309(j) of the Communications 
        Act of 1934 (47 U.S.C. 309(j)) is amended--
                    (A) in paragraph (3), by amending subparagraph (F) 
                to read as follows:
                    ``(F) for any auction of eligible frequencies 
                described in section 113(g)(2) of the National 
                Telecommunications and Information Administration 
                Organization Act (47 U.S.C. 923(g)(2)) or frequencies 
                described in section 119(f)(1) of such Act, the 
                recovery of 110 percent of estimated relocation costs 
                as provided to the Commission under section 113(g)(4) 
                or 119(e)(1)(D)(iii), respectively, of such Act.'';
                    (B) in paragraph (8)(D)--
                            (i) by striking the header and inserting 
                        ``Proceeds from reallocated federal spectrum'';
                            (ii) by striking ``Cash'' and inserting the 
                        following:
                            ``(i) In general.--Cash''; and
                            (iii) by adding at the end the following:
                            ``(ii) Exception.--With respect to each 
                        auction of frequencies described in section 
                        119(f)(1) of such Act, an amount of the 
                        proceeds equal to the estimated relocation 
                        costs provided to the Commission under section 
                        119(e)(1)(D)(iii) for relocation of Federal 
                        entities from the frequencies being assigned 
                        through such auction shall be deposited in the 
                        Spectrum Relocation Fund. The remainder shall 
                        be deposited in the general fund of the 
                        Treasury for the sole purpose of deficit 
                        reduction.''; and
                    (C) in paragraph (16)--
                            (i) in the header, by striking ``eligible 
                        frequencies'' and inserting ``reallocated 
                        federal spectrum'';
                            (ii) by amending subparagraphs (A) and (B) 
                        to read as follows:
                    ``(A) Special regulations.--The Commission shall 
                revise the regulations prescribed under paragraph 
                (4)(F) to prescribe methods by which--
                            ``(i) the total cash proceeds from any 
                        auction of eligible frequencies described in 
                        section 113(g)(2) of the National 
                        Telecommunications and Information 
                        Administration Organization Act (47 U.S.C. 
                        923(g)(2)) shall at least equal 110 percent of 
                        the total estimated relocation costs provided 
                        to the Commission pursuant to section 113(g)(4) 
                        of such Act; and
                            ``(ii) the total cash proceeds from any 
                        auction of frequencies described in section 
                        119(f)(1) of such Act shall at least equal 110 
                        percent of the total estimated relocation costs 
                        provided to the Commission pursuant to section 
                        119(e)(1)(D)(iii) of such Act.
                    ``(B) Conclusion of auctions contingent on minimum 
                proceeds.--
                            ``(i) In general.--The Commission may not 
                        conclude any auction--
                                    ``(I) of eligible frequencies 
                                described in section 113(g)(2) of the 
                                National Telecommunications and 
                                Information Administration Organization 
                                Act (47 U.S.C. 923(g)(2)) 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(g)(4) of such Act; or
                                    ``(II) of frequencies described in 
                                section 119(f)(1) 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 119(e)(1)(D)(iii) of such Act.
                            ``(ii) Inability to conclude auction.--If 
                        the Commission is unable to conclude an auction 
                        because of the requirement of subclause (I) or 
                        (II) of clause (i), 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 the 
                        United States to bid in any subsequent 
                        reauction of such spectrum.''; and
                            (iii) in subparagraph (C)--
                                    (I) by striking ``eligible 
                                frequencies'' and inserting 
                                ``frequencies''; and
                                    (II) by striking ``an eligible 
                                Federal entity's'' and inserting ``a 
                                Federal entity's''.
            (2) Separation from relocation process under section 113 of 
        the ntia organization act.--Section 113(g)(2)(B) of the 
        National Telecommunications and Information Administration 
        Organization Act (47 U.S.C. 923(g)(2)(B)) is amended by 
        inserting before the period at the end the following: ``, or 
        frequencies described in section 119(f)(1)''.
            (3) Spectrum relocation fund.--Section 118 of the National 
        Telecommunications and Information Administration Organization 
        Act (47 U.S.C. 928) is amended--
                    (A) by amending subsection (c) to read as follows:
    ``(c) Used To Pay Relocation Costs.--The amounts in the Fund--
            ``(1) from auctions of eligible frequencies described in 
        section 113(g)(2) are authorized to be used to pay relocation 
        costs, as defined in section 113(g)(3), of an eligible Federal 
        entity incurring such costs with respect to relocation from 
        those frequencies; and
            ``(2) from auctions of frequencies described in section 
        119(f)(1) are authorized to be used to pay relocation costs, as 
        defined in section 119(a)(7), of a Federal entity incurring 
        such costs with respect to relocation from those 
        frequencies.'';
                    (B) in subsection (d)(2)--
                            (i) in the matter before subparagraph (A), 
                        by striking ``eligible'';
                            (ii) in subparagraph (B), by striking ``for 
                        approval'' each place it appears; and
                            (iii) in the matter after subparagraph (B), 
                        by striking ``Unless disapproved'' and all that 
                        follows and inserting ``In the case of an 
                        initial transfer to a Federal entity incurring 
                        relocation costs with respect to relocation 
                        from frequencies described in section 
                        119(f)(1), approval of the implementation plan 
                        of the entity under section 119(e)(1)(D) 
                        constitutes approval under subparagraph (A).''; 
                        and
                    (C) in subsection (e)--
                            (i) in the header, by striking 
                        ``Eligible'';
                            (ii) in paragraph (1)--
                                    (I) in subparagraph (A), by 
                                striking ``section 113(g)(1) of this 
                                Act'' and inserting ``section 
                                113(g)(1), or Federal entities 
                                incurring relocation costs with respect 
                                to relocation from frequencies 
                                described in section 119(f)(1)'';
                                    (II) in subparagraph (B), by 
                                striking ``An eligible Federal entity'' 
                                and inserting ``A Federal entity''; and
                                    (III) in subparagraph (C), by 
                                striking ``eligible''; and
                            (iii) in paragraph (2), by striking ``An 
                        eligible Federal entity'' and inserting ``A 
                        Federal entity''.

SEC. 4. PROHIBITION AGAINST CERTAIN CONDITIONS ON LICENSURE AND AUCTION 
              PARTICIPATION.

    Section 309(j) of the Communications Act of 1934, as amended by 
section 3(b)(1), is further amended by adding at the end the following:
            ``(17) Prohibition against certain conditions on licensure 
        and auction participation.--The Commission may not--
                    ``(A) establish on a license for the use of 
                spectrum frequencies any condition relating to its 
                Report and Order with regard to Preserving the Open 
                Internet; Broadband Industry Practices (GN Docket No. 
                09-191, WC Docket No. 07-52) (adopted December 21, 
                2010);
                    ``(B) restrict the number or type of bidders or any 
                specific bidder from participating in any public 
                auction for the assignment of licenses for the use of 
                spectrum frequencies;
                    ``(C) prescribe the rates or terms of or otherwise 
                condition services that may be offered by successful 
                bidders in any such auction; or
                    ``(D) notwithstanding section 316, impose any 
                additional license requirements or rules on successful 
                bidders once any such auction has been completed.''.
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