U.S. GOVERNMENT PRINTING OFFICE

29–010 WASHINGTON : 

" SENATE ! 108TH CONGRESS

1st Session 

REPORT

2003

108–161

Calendar No. 304

THE NATIONAL TELECOMMUNICATIONS 

AND INFORMATION ADMINISTRATION 

REAUTHORIZATION ACT

REPORT

OF THE

COMMITTEE ON COMMERCE, SCIENCE, AND 

TRANSPORTATION

ON

S. 1478

OCTOBER 2, 2003.—Ordered to be printed 


congress.#13
SENATE COMMITTEE ON COMMERCE, SCIENCE, AND TRANSPORTATION 

ONE HUNDRED EIGHTH CONGRESS

FIRST SESSION

JOHN MCCAIN, Arizona, Chairman 

TED STEVENS, Alaska 

CONRAD BURNS, Montana 

TRENT LOTT, Mississippi 

KAY BAILEY HUTCHISON, Texas 

OLYMPIA J. SNOWE, Maine 

SAM BROWNBACK, Kansas 

GORDON SMITH, Oregon 

PETER G. FITZGERALD, Illinois 

JOHN ENSIGN, Nevada 

GEORGE ALLEN, Virginia 

JOHN E. SUNUNU, New Hampshire 

ERNEST F. HOLLINGS, South Carolina 

DANIEL K. INOUYE, Hawaii 

JOHN D. ROCKEFELLER IV, West Virginia 

JOHN F. KERRY, Massachusetts 

JOHN B. BREAUX, Louisiana 

BYRON L. DORGAN, North Dakota 

RON WYDEN, Oregon 

BARBARA BOXER, California 

BILL NELSON, Florida 

MARIA CANTWELL, Washington 

FRANK LAUTENBERG, New Jersey 

JEANNE BUMPUS, Staff Director and General Counsel 

ANN BEGEMAN, Deputy Staff Director 

ROBERT W. CHAMBERLIN, Chief Counsel 

KEVIN D. KAYES, Democratic Staff Director and Chief Counsel 

GREGG ELIAS, Democratic General Counsel 

(II)

Calendar No. 304

108TH CONGRESS REPORT " SENATE ! 1st Session 108–161

AUTHORIZATION OF NATIONAL TELECOMMUNICATIONS 

AND INFORMATION ADMINISTRATION 

OCTOBER 2, 2003.—Ordered to be printed 

Mr. MCCAIN, from the Committee on Commerce, Science, and 

Transportation, submitted the following 

R E P O R T 

[To accompany S. 1478]

The Committee on Commerce, Science, and Transportation, to 

which was referred the bill (S. 1478) to reauthorize the National 

Telecommunications and Information Administration, and for other 

purposes, having considered the same, reports favorably thereon 

without amendment and recommends that the bill do pass. 

PURPOSE OF THE BILL

The purpose of S. 1478 is to authorize the National Telecommunications and Information Administration (NTIA) for fiscal 

years (FY) 2004 through 2008. The NTIA has been unauthorized 

since fiscal year 1993. 

BACKGROUND AND NEEDS

The NTIA, created in 1978 as a result of a major Executive 

Branch reorganization, is an agency of the U.S. Department of 

Commerce. The Administrator of NTIA, who is also the Assistant 

Secretary of Commerce, serves as the President’s principal adviser 

on telecommunications policies pertaining to the nation’s economic 

and technological advancement and to regulation of the telecommunications industry. The NTIA works to develop and present 

the Administration’s position on both domestic and international 

telecommunications issues, and frequently provides guidance to 

other Executive Branch agencies on these issues. Among its responsibilities, the NTIA establishes policies concerning the Federal government’s use of electromagnetic spectrum, including assignment, 

allocation, and use, and administers grants to encourage the 

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growth and development of telecommunications and information 

technologies. 

LEGISLATIVE HISTORY

On July 28, 2003, Senators McCain and Hollings introduced S. 

1478, a bill to reauthorize the NTIA and its programs, and for 

other purposes. On July 31, 2003, the Senate Committee on Commerce, Science, and Transportation held an executive session at 

which S. 1478 was considered. The bill was ordered to be reported 

by voice vote. 

ESTIMATED COSTS

In accordance with paragraph 11(a) of rule XXVI of the Standing 

Rules of the Senate and section 403 of the Congressional Budget 

Act of 1974, the Committee provides the following cost estimate, 

prepared by the Congressional Budget Office:

U.S. CONGRESS, 

CONGRESSIONAL BUDGET OFFICE, 

Washington, DC, August 15, 2003. 

Hon. JOHN MCCAIN,

Chairman, Committee on Commerce, Science, and Transportation, 

U.S. Senate, Washington, DC. 

DEAR MR. CHAIRMAN: The Congressional Budget Office has prepared the enclosed cost estimate for S. 1478, a bill to reauthorize 

the National Telecommunications and Information Administration, 

and for other purposes. 

If you wish further details on this estimate, we will be pleased 

to provide them. The CBO staff contact is Melissa Zimmerman. 

Sincerely, 

DOUGLAS HOLTZ-EAKIN, 

Director. 

Enclosure.

S. 1478—A bill to reauthorize the National Telecommunications 

and Information Administration, and for other purposes 

Summary: S. 1478 would authorize the appropriation of $184 

million for the National Telecommunications and Information Administration (NTIA) for the 2004–2008 period. This amount includes about $100 million for NTIA salaries and expenses and $84 

million for grants under the NTIA Technology Opportunities Program but does not include an authorization for grants for public 

telecommunication projects (which received $44 million for 2003). 

Assuming appropriation of the specified amounts, CBO estimates 

that implementing S. 1478 would cost $16 million in 2004 and $144 

million over the 2004–2008 period. Enacting this bill would not affect direct spending or revenues. 

S. 1478 contains no intergovernmental or private-section mandates as defined in the Unfunded Mandates Reform Act (UMRA) 

and would provide benefits to state, local, and tribal governments. 

Estimated cost to the Federal Government: The estimated budgetary impact of S. 1478 is shown in the following table. For this 

estimate, CBO assumes that the amounts authorized will be appropriated each year and that outlays will follow historical trends for 

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these programs. The costs of this legislation fall within budget 

functions 370 (commerce and housing credit) and 500 (education, 

training, employment, and social services).

By fiscal year, in millions of dollars—

2003 2004 2005 2006 2007 2008

SPENDING SUBJECT TO APPROPRIATION

NTIA Spending Under Current Law: 

Budget Authority 1 ........................................................................... 75 0 0 0 0 0

Estimated Outlays ........................................................................... 101 73 32 12 0 0

Proposed Changes: 

Authorization Level .......................................................................... 0 35 35 37 38 39

Estimated Outlays ........................................................................... 0 16 22 32 37 37

Spending Under S. 1478

Authorization Level 1 ........................................................................ 75 35 35 37 38 39

Estimated Outlays ........................................................................... 101 89 54 44 37 37

1 The 2003 level is the amount appropriated for that year. 

Intergovernmental and private-sector impact: S. 1478 contains no 

intergovernmental or private-sector mandates as defined in UMRA 

and would provide benefits to state, local, and tribal governments. 

The bill would benefit state, local, and tribal governments by authorizing a total of $84 million in matching grants for the Technology Opportunities Program over the period 2004–2008. 

Estimate prepared by: Federal Costs: Melissa E. Zimmerman; 

Impact on State, Local, and Tribal Governments: Sarah Puro; and 

Impact on the Private Sector: Jean Talarico. 

Estimate approved by: Peter H. Fontaine, Deputy Assistant Director for Budget Analysis.

REGULATORY IMPACT STATEMENT

In accordance with paragraph 11(b) of rule XXVI of the Standing 

Rules of the Senate, the Committee provides the following evaluation of the regulatory impact of the legislation, as reported: 

NUMBER OF PERSONS COVERED

S. 1478 would reauthorize the NTIA for FY 2004 through FY 

2008 and authorize funding for the NTIA to provide grants as part 

of the Technology Opportunities Program (TOP). The TOP has 

never been authorized, but has been operated through appropriations bills since 1994. The number of persons covered by this legislation should be consistent with current levels of individuals affected. 

ECONOMIC IMPACT

S. 1478 would authorize funds for the NTIA’s programs. These 

programs are intended to spur innovation, encourage competition, 

help create jobs, and provide consumers with more choices and better quality telecommunications products and services. This legislation is expected to have a positive effect on the nation’s economy. 

PRIVACY

S. 1478 is not expected to have an adverse effect on the personal 

privacy of any individuals that will be impacted by this legislation. 

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PAPERWORK

There should be no change in paperwork requirements resulting 

from passage of S. 1478. 

SECTION-BY-SECTION ANALYSIS

Section 1. Reauthorization of NTIA 

This section would authorize funding for the NTIA for Fiscal 

Years 2004 through 2008. The President’s FY 2004 budget requests 

$18,869,000 for the NTIA. For FY 2005 through 2008, the bill 

would authorize funding for the NTIA at 3 percent increases annually. 

This section also would authorize funding for the NTIA to provide grants as part of the TOP. The TOP has never been authorized. Instead, it has operated through appropriations bills since 

1994. Through the program, the NTIA provides matching grants to 

State and local governments and non-profit organizations to demonstrate advanced and innovative applications of telecommunications and information technology. As described on the NTIA’s 

web site, the TOP is ‘‘a merit-based grant program that brings the 

benefits of digital network technologies to communities throughout 

the United States.’’ In 2002, the NTIA awarded $12.4 million to 25 

grantees, selected from 700 applicants. Awards were granted based 

on the ability of the applicant to serve as a model for similar organizations across the United States. The Administration has requested no funding for the TOP for FY 2004. 

Section 2. Payment for spectrum management functions 

This section would permit the NTIA to charge fees to other Federal agencies to cover its costs of managing Federal spectrum and 

making spectrum assignments. Historically, this authority has 

been granted to the NTIA in appropriations bills. 

CHANGES IN EXISTING LAW

In compliance with paragraph 12 of rule XXVI of the Standing 

Rules of the Senate, changes in existing law made by the bill, as 

reported, are shown as follows (existing law proposed to be omitted 

is enclosed in black brackets, new material is printed in italic, existing law in which no change is proposed is shown in roman): 

NATIONAL TELECOMMUNICATIONS AND INFORMATION 

ADMINISTRATION ORGANIZATION ACT 

[47 U.S.C. 901 et seq.] 

SEC. 104. SPECTRUM MANAGEMENT ACTIVITIES. 

[47 U.S.C. 903]

(a) REVISION OF REGULATIONS.—Within 180 days after the date 

of the enactment of this Act, the Secretary of Commerce and the 

NTIA shall amend the Department of Commerce spectrum management document entitled ‘‘Manual of Regulations and Procedures for 

Federal Radio Frequency Management’’ to improve Federal specVerDate jul 14 2003 01:46 Oct 04, 2003 Jkt 029010 PO 00000 Frm 00006 Fmt 6659 Sfmt 6602 E:\HR\OC\SR161.XXX SR161
5

trum management activities and shall publish in the Federal Register any changes in the regulations in such document. 

(b) REQUIREMENTS FOR REVISIONS.—The amendments required 

by subsection (a) shall— (1) provide for a period at the beginning of each meeting of 

the Interdepartmental Radio Advisory Committee to be open to 

the public to make presentations and receive advice, and provide the public with other meaningful opportunities to make 

presentations and receive advice; 

(2) include provisions that will require— (A) publication in the Federal Register of major policy 

proposals that are not classified and that involve spectrum 

management, and 

(B) adequate opportunity for public review and comment 

on those proposals; 

(3) include provisions that will require publication in the 

Federal Register of major policy decisions that are not classified and that involve spectrum management; 

(4) include provisions that will require that nonclassified 

spectrum management information be made available to the 

public, including access to electronic databases; and 

(5) establish procedures that provide for the prompt and impartial consideration of requests for access to Government 

spectrum by the public, which procedures shall include provisions that will require the disclosure of the status and ultimate 

disposition of any such request. 

(c) CERTIFICATION TO CONGRESS.—Not later than 180 days after 

the date of enactment of this Act, the Secretary of Commerce shall 

certify to Congress that the Secretary has complied with this section. 

(d) RADIO SERVICES.— (1) ASSIGNMENTS FOR RADIO SERVICES.—In assigning frequencies for mobile radio services and other radio services, the 

Secretary of Commerce shall promote efficient and cost-effective use of the spectrum to the maximum extent feasible. 

(2) AUTHORITY TO WITHHOLD ASSIGNMENTS.—The Secretary 

of Commerce shall have the authority to withhold or refuse to 

assign frequencies for mobile radio service or other radio service in order to further the goal of making efficient and cost-effective use of the spectrum. 

(3) SPECTRUM PLAN.—By October 1, 1993, the Secretary of 

Commerce shall adopt and commence implementation of a plan 

for Federal agencies with existing mobile radio systems to use 

more spectrum-efficient technologies that are at least as spectrum-efficient and cost-effective as readily available commercial mobile radio systems. The plan shall include a time schedule for implementation. 

(4) REPORT TO CONGRESS.—By October 1, 1993, the Secretary 

of Commerce shall submit to the Committee on Commerce, 

Science, and Transportation of the Senate and the Committee 

on Energy and Commerce of the House of Representatives a report summarizing the plan adopted under paragraph (3), including the implementation schedule for the plan. 

(e) PROOF OF COMPLIANCE WITH FCC LICENSING REQUIREMENTS.—

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(1) AMENDMENT TO MANUAL REQUIRED.—Within 90 days after 

the date of enactment of this subsection, the Secretary and the 

NTIA shall amend the spectrum management document described in subsection (a) to require that—

(A) no person or entity (other than an agency or instrumentality of the United States) shall be permitted, after 1 

year after such date of enactment, to operate a radio station utilizing a frequency that is authorized for the use of 

government stations pursuant to section 103(b)(2)(A) of 

this Act for any non-government application unless such 

person or entity has submitted to the NTIA proof, in a 

form prescribed by such manual, that such person or entity has obtained a license from the Commission; and 

(B) no person or entity (other than an agency or instrumentality of the United States) shall be permitted, after 1 

year after such date of enactment, to utilize a radio station 

belonging to the United States for any non-government application unless such person or entity has submitted to the 

NTIA proof, in a form prescribed by such manual, that 

such person or entity has obtained a license from the Commission. 

(2) RETENTION OF FORMS.—The NTIA shall maintain on file 

the proofs submitted under paragraph (1), or facsimiles thereof. 

(3) CERTIFICATION.—Within 1 year after the date of enactment of this subsection, the Secretary and the NTIA shall certify to the Committee on Energy and Commerce of the House 

of Representatives and the Committee on Commerce, Science, 

and Transportation of the Senate that—

(A) the amendments required by paragraph (1) have 

been accomplished; and 

(B) the requirements of subparagraphs (A) and (B) of 

such paragraph are being enforced.

(f) REIMBURSEMENT FROM FEDERAL AGENCIES.—

(1) FEES FOR COSTS.—Notwithstanding section 1535(d) of 

title 31, United States Code, the NTIA shall assess against, and 

collect from, each Federal agency for which the NTIA assigns 

spectrum or provides any spectrum management functions a 

charge to cover the costs thereof. 

(2) ASSIGNMENT AND MANAGEMENT FUNCTION CHARGES.—The 

NTIA may not assign any spectrum for use for, or provide any 

spectrum management functions with respect to, any Federal 

agency, except to the extent that the NTIA obtains reimbursement for the costs thereof.

* * * * * * *

øSEC. 151. AUTHORIZATION OF APPROPRIATIONS FOR ADMINISTRATION. 

øThere are authorized to be appropriated for the administration 

of the NTIA $17,600,000 for fiscal year 1992 and $17,900,000 for 

fiscal year 1993, and such sums as may be necessary for increases 

resulting from adjustments in salary, pay, retirement, other employee benefits required by law, and other nondiscretionary costs.¿

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SEC. 151. AUTHORIZATION OF APPROPRIATIONS FOR ADMINISTRATION. 

(a) IN GENERAL.—There are authorized to be appropriated for the 

administration of the NTIA—

(1) $18,869,000 for fiscal year 2004; 

(2) $19,435,000 for fiscal year 2005; 

(3) $20,018,000 for fiscal year 2006; 

(4) $20,619,000 for fiscal year 2007; and 

(5) $21,237,000 for fiscal year 2008. 

(b) TOP PROGRAM.—There are authorized to be appropriated to 

the NTIA for grants under the NTIA Technology Opportunities Program (described in the NTIA notice of availability of funds published on March 17, 2003, in the Federal Register (68 Fed. Reg. 

12678)), including administrative costs—

(1) $15,862,000 for fiscal year 2004; 

(2) $16,338,000 for fiscal year 2005; 

(3) $16,828,000 for fiscal year 2006; 

(4) $17,333,000 for fiscal year 2007; and 

(5) $17,852,000 for fiscal year 2008.

Æ