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[112th Congress Public Law 96]
[From the U.S. Government Printing Office]

[[Page 155]]

          MIDDLE CLASS TAX RELIEF AND JOB CREATION ACT OF 2012

[[Page 126 STAT. 156]]

Public Law 112-96
112th Congress

                                 An Act

 
     To provide incentives for the creation of jobs, and for other 
            purposes. <<NOTE: Feb. 22, 2012 -  [H.R. 3630]>> 

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled, <<NOTE: Middle Class Tax 
Relief and Job Creation Act of 2012. 26 USC 1 note.>> 
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Middle Class Tax 
Relief and Job Creation Act of 2012''.
    (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title; table of contents.

               TITLE I--EXTENSION OF PAYROLL TAX REDUCTION

Sec. 1001. Extension of payroll tax reduction.

   TITLE II--UNEMPLOYMENT BENEFIT CONTINUATION AND PROGRAM IMPROVEMENT

Sec. 2001. Short title.

Subtitle A--Reforms of Unemployment Compensation to Promote Work and Job 
                                Creation

Sec. 2101. Consistent job search requirements.
Sec. 2102. State flexibility to promote the reemployment of unemployed 
           workers.
Sec. 2103. Improving program integrity by better recovery of 
           overpayments.
Sec. 2104. Data exchange standardization for improved interoperability.
Sec. 2105. Drug testing of applicants.

          Subtitle B--Provisions Relating To Extended Benefits

Sec. 2121. Short title.
Sec. 2122. Extension and modification of emergency unemployment 
           compensation program.
Sec. 2123. Temporary extension of extended benefit provisions.
Sec. 2124. Additional extended unemployment benefits under the Railroad 
           Unemployment Insurance Act.

   Subtitle C--Improving Reemployment Strategies Under the Emergency 
                    Unemployment Compensation Program

Sec. 2141. Improved work search for the long-term unemployed.
Sec. 2142. Reemployment services and reemployment and eligibility 
           assessment activities.
Sec. 2143. Promoting program integrity through better recovery of 
           overpayments.
Sec. 2144. Restore State flexibility to improve unemployment program 
           solvency.

               Subtitle D--Short-Time Compensation Program

Sec. 2160. Short title.
Sec. 2161. Treatment of short-time compensation programs.
Sec. 2162. Temporary financing of short-time compensation payments in 
           States with programs in law.
Sec. 2163. Temporary financing of short-time compensation agreements.
Sec. 2164. Grants for short-time compensation programs.
Sec. 2165. Assistance and guidance in implementing programs.

[[Page 126 STAT. 157]]

Sec. 2166. Reports.

                 Subtitle E--Self-Employment Assistance

Sec. 2181. State administration of self-employment assistance programs.
Sec. 2182. Grants for self-employment assistance programs.
Sec. 2183. Assistance and guidance in implementing self-employment 
           assistance programs.
Sec. 2184. Definitions.

             TITLE III--MEDICARE AND OTHER HEALTH PROVISIONS

                     Subtitle A--Medicare Extensions

Sec. 3001. Extension of MMA section 508 reclassifications.
Sec. 3002. Extension of outpatient hold harmless payments.
Sec. 3003. Physician payment update.
Sec. 3004. Work geographic adjustment.
Sec. 3005. Payment for outpatient therapy services.
Sec. 3006. Payment for technical component of certain physician 
           pathology services.
Sec. 3007. Ambulance add-on payments.

                   Subtitle B--Other Health Provisions

Sec. 3101. Qualifying individual program.
Sec. 3102. Transitional medical assistance.

                       Subtitle C--Health Offsets

Sec. 3201. Reduction of bad debt treated as an allowable cost.
Sec. 3202. Rebase Medicare clinical laboratory payment rates.
Sec. 3203. Rebasing State DSH allotments for fiscal year 2021.
Sec. 3204. Technical correction to the disaster recovery FMAP provision.
Sec. 3205. Prevention and Public Health Fund.

                        TITLE IV--TANF EXTENSION

Sec. 4001. Short title.
Sec. 4002. Extension of program.
Sec. 4003. Data exchange standardization for improved interoperability.
Sec. 4004. Spending policies for assistance under State TANF programs.
Sec. 4005. Technical corrections.

                  TITLE V--FEDERAL EMPLOYEES RETIREMENT

Sec. 5001. Increase in contributions to Federal Employees' Retirement 
           System for new employees.
Sec. 5002. Foreign Service Pension System.
Sec. 5003. Central Intelligence Agency Retirement and Disability System.

  TITLE VI--PUBLIC SAFETY COMMUNICATIONS AND ELECTROMAGNETIC SPECTRUM 
                                AUCTIONS

Sec. 6001. Definitions.
Sec. 6002. Rule of construction.
Sec. 6003. Enforcement.
Sec. 6004. National security restrictions on use of funds and auction 
           participation.

           Subtitle A--Reallocation of Public Safety Spectrum

Sec. 6101. Reallocation of D block to public safety.
Sec. 6102. Flexible use of narrowband spectrum.
Sec. 6103. 470-512 MHz public safety spectrum.

            Subtitle B--Governance of Public Safety Spectrum

Sec. 6201. Single public safety wireless network licensee.
Sec. 6202. Public safety broadband network.
Sec. 6203. Public Safety Interoperability Board.
Sec. 6204. Establishment of the First Responder Network Authority.
Sec. 6205. Advisory committees of the First Responder Network Authority.
Sec. 6206. Powers, duties, and responsibilities of the First Responder 
           Network Authority.
Sec. 6207. Initial funding for the First Responder Network Authority.
Sec. 6208. Permanent self-funding; duty to assess and collect fees for 
           network use.
Sec. 6209. Audit and report.
Sec. 6210. Annual report to Congress.
Sec. 6211. Public safety roaming and priority access.

[[Page 126 STAT. 158]]

Sec. 6212. Prohibition on direct offering of commercial 
           telecommunications service directly to consumers.
Sec. 6213. Provision of technical assistance.

                  Subtitle C--Public Safety Commitments

Sec. 6301. State and Local Implementation Fund.
Sec. 6302. State and local implementation.
Sec. 6303. Public safety wireless communications research and 
           development.

                 Subtitle D--Spectrum Auction Authority

Sec. 6401. Deadlines for auction of certain spectrum.
Sec. 6402. General authority for incentive auctions.
Sec. 6403. Special requirements for incentive auction of broadcast TV 
           spectrum.
Sec. 6404. Certain conditions on auction participation prohibited.
Sec. 6405. Extension of auction authority.
Sec. 6406. Unlicensed use in the 5 GHz band.
Sec. 6407. Guard bands and unlicensed use.
Sec. 6408. Study on receiver performance and spectrum efficiency.
Sec. 6409. Wireless facilities deployment.
Sec. 6410. Functional responsibility of NTIA to ensure efficient use of 
           spectrum.
Sec. 6411. System certification.
Sec. 6412. Deployment of 11 GHz, 18 GHz, and 23 GHz microwave bands.
Sec. 6413. Public Safety Trust Fund.
Sec. 6414. Study on emergency communications by amateur radio and 
           impediments to amateur radio communications.

        Subtitle E--Next Generation 9-1-1 Advancement Act of 2012

Sec. 6501. Short title.
Sec. 6502. Definitions.
Sec. 6503. Coordination of 9-1-1 implementation.
Sec. 6504. Requirements for multi-line telephone systems.
Sec. 6505. GAO study of State and local use of 9-1-1 service charges.
Sec. 6506. Parity of protection for provision or use of Next Generation 
           9-1-1 services.
Sec. 6507. Commission proceeding on autodialing.
Sec. 6508. Report on costs for requirements and specifications of Next 
           Generation 9-1-1 services.
Sec. 6509. Commission recommendations for legal and statutory framework 
           for Next Generation 9-1-1 services.

             Subtitle F--Telecommunications Development Fund

Sec. 6601. No additional Federal funds.
Sec. 6602. Independence of the Fund.

                 Subtitle G--Federal Spectrum Relocation

Sec. 6701. Relocation of and spectrum sharing by Federal Government 
           stations.
Sec. 6702. Spectrum Relocation Fund.
Sec. 6703. National security and other sensitive information.

                   TITLE VII--MISCELLANEOUS PROVISIONS

Sec. 7001. Repeal of certain shifts in the timing of corporate estimated 
           tax payments.
Sec. 7002. Repeal of requirement relating to time for remitting certain 
           merchandise processing fees.
Sec. 7003. Treatment for PAYGO purposes.

               TITLE I--EXTENSION OF PAYROLL TAX REDUCTION

SEC. 1001. EXTENSION OF PAYROLL TAX REDUCTION.

    (a) In General.--Subsection (c) of section 601 of the Tax Relief, 
Unemployment Insurance Reauthorization, and Job Creation Act of 2010 (26 
U.S.C. 1401 note) is amended to read as follows:
    ``(c) <<NOTE: Definition.>>  Payroll Tax Holiday Period.--The term 
`payroll tax holiday period' means calendar years 2011 and 2012.''.

    (b) Conforming Amendments.--Section 601 of such Act (26 U.S.C. 1401 
note) is amended by striking subsections (f) and (g).

[[Page 126 STAT. 159]]

    (c) <<NOTE: 26 USC 1401 note.>>  Effective Date.--The amendments 
made by this section shall apply to remuneration received, and taxable 
years beginning, after December 31, 2011.

  TITLE II--UNEMPLOYMENT <<NOTE: Extended Benefits, Reemployment, and 
Program Integrity Improvement Act. State and local governments. 26 USC 1 
note.>>  BENEFIT CONTINUATION AND PROGRAM IMPROVEMENT
SEC. 2001. SHORT TITLE.

    This title may be cited as the ``Extended Benefits, Reemployment, 
and Program Integrity Improvement Act''.

Subtitle A--Reforms of Unemployment Compensation to Promote Work and Job 
                                Creation

SEC. 2101. CONSISTENT JOB SEARCH REQUIREMENTS.

    (a) In General.--Section 303(a) <<NOTE: 42 USC 503.>>  of the Social 
Security Act is amended by adding at the end the following:
            ``(12) A requirement that, as a condition of eligibility for 
        regular compensation for any week, a claimant must be able to 
        work, available to work, and actively seeking work.''.

    (b) <<NOTE: 42 USC 503 note.>>  Effective Date.--The amendment made 
by subsection (a) shall apply to weeks beginning after the end of the 
first session of the State legislature which begins after the date of 
enactment of this Act.
SEC. 2102. STATE FLEXIBILITY TO PROMOTE THE REEMPLOYMENT OF 
                          UNEMPLOYED WORKERS.

    Title III of the Social Security Act (42 U.S.C. 501 and following) 
is amended by adding at the end the following:

                        ``demonstration projects

    ``Sec. 305.  (a) <<NOTE: 42 USC 505.>>  The Secretary of Labor may 
enter into agreements, with up to 10 States that submit an application 
described in subsection (b), for the purpose of allowing such States to 
conduct demonstration projects to test and evaluate measures designed--
            ``(1) to expedite the reemployment of individuals who have 
        established a benefit year and are otherwise eligible to claim 
        unemployment compensation under the State law of such State; or
            ``(2) to improve the effectiveness of a State in carrying 
        out its State law with respect to reemployment.

    ``(b) The Governor of any State desiring to conduct a demonstration 
project under this section shall submit an application to the Secretary 
of Labor. Any such application shall include--
            ``(1) a general description of the proposed demonstration 
        project, including the authority (under the laws of the State) 
        for the measures to be tested, as well as the period of time 
        during which such demonstration project would be conducted;
            ``(2) if a waiver under subsection (c) is requested, a 
        statement describing the specific aspects of the project to 
        which

[[Page 126 STAT. 160]]

        the waiver would apply and the reasons why such waiver is 
        needed;
            ``(3) a description of the goals and the expected 
        programmatic outcomes of the demonstration project, including 
        how the project would contribute to the objective described in 
        subsection (a)(1), subsection (a)(2), or both;
            ``(4) assurances (accompanied by supporting analysis) that 
        the demonstration project would operate for a period of at least 
        1 calendar year and not result in any increased net costs to the 
        State's account in the Unemployment Trust Fund;
            ``(5) a description of the manner in which the State--
                    ``(A) will conduct an impact evaluation, using a 
                methodology appropriate to determine the effects of the 
                demonstration project, including on individual skill 
                levels, earnings, and employment retention; and
                    ``(B) will determine the extent to which the goals 
                and outcomes described in paragraph (3) were achieved;
            ``(6) assurances that the State will provide any reports 
        relating to the demonstration project, after its approval, as 
        the Secretary of Labor may require; and
            ``(7) assurances that employment meets the State's suitable 
        work requirement and the requirements of section 3304(a)(5) of 
        the Internal Revenue Code of 1986.

    ``(c) <<NOTE: Waiver authority.>>  The Secretary of Labor may waive 
any of the requirements of section 3304(a)(4) of the Internal Revenue 
Code of 1986 or of paragraph (1) or (5) of section 303(a), to the extent 
and for the period the Secretary of Labor considers necessary to enable 
the State to carry out a demonstration project under this section.

    ``(d) A demonstration project under this section--
            ``(1) may be commenced any time after the date of enactment 
        of this section;
            ``(2) <<NOTE: Time period.>>  may not be approved for a 
        period of time greater than 3 years; and
            ``(3) <<NOTE: Deadline.>>  must be completed by not later 
        than December 31, 2015.

    ``(e) Activities that may be pursued under a demonstration project 
under this section are limited to--
            ``(1) subsidies for employer-provided training, such as wage 
        subsidies; and
            ``(2) direct disbursements to employers who hire individuals 
        receiving unemployment compensation, not to exceed the weekly 
        benefit amount for each such individual, to pay part of the cost 
        of wages that exceed the unemployed individual's prior benefit 
        level.

    ``(f) <<NOTE: Time periods.>>  The Secretary of Labor shall, in the 
case of any State for which an application is submitted under subsection 
(b)--
            ``(1) <<NOTE: Notification.>>  notify the State as to 
        whether such application has been approved or denied within 30 
        days after receipt of a complete application; and
            ``(2) <<NOTE: Notice.>>  provide public notice of the 
        decision within 10 days after providing notification to the 
        State in accordance with paragraph (1).

Public notice under paragraph (2) may be provided through the Internet 
or other appropriate means. Any application under this section that has 
not been denied within the 30-day period described in paragraph (1) 
shall be deemed approved, and public notice of

[[Page 126 STAT. 161]]

any approval under this sentence shall be provided within 10 days 
thereafter.
    ``(g) <<NOTE: Determination.>>  The Secretary of Labor may terminate 
a demonstration project under this section if the Secretary determines 
that the State has violated the substantive terms or conditions of the 
project.

    ``(h) Funding certified under section 302(a) may be used for an 
approved demonstration project.''.
SEC. 2103. IMPROVING PROGRAM INTEGRITY BY BETTER RECOVERY OF 
                          OVERPAYMENTS.

    (a) Use of Unemployment Compensation to Repay Overpayments.--Section 
3304(a)(4)(D) of the Internal Revenue Code of 1986 and section 303(g)(1) 
of the Social Security <<NOTE: 26 USC 3304; 42 USC 503.>> Act are each 
amended by striking ``may'' and inserting ``shall''.

    (b) Use of Unemployment Compensation to Repay Federal Additional 
Compensation Overpayments.--Section 303(g)(3) of the Social Security Act 
is amended by inserting ``Federal additional compensation,'' after 
``trade adjustment allowances,''.
    (c) <<NOTE: 26 USC 3304 note.>>  Effective Date.--The amendments 
made by this section shall apply to weeks beginning after the end of the 
first session of the State legislature which begins after the date of 
enactment of this Act.
SEC. 2104. DATA EXCHANGE STANDARDIZATION FOR IMPROVED 
                          INTEROPERABILITY.

    (a) In General.--Title IX of the Social Security Act is amended by 
adding at the end the following:

      ``DATA EXCHANGE STANDARDIZATION FOR IMPROVED INTEROPERABILITY

                        ``Data Exchange Standards

    ``Sec. 911. (a)(1) <<NOTE: Establishment. Regulations. 42 USC 
1111.>> The Secretary of Labor, in consultation with an interagency work 
group which shall be established by the Office of Management and Budget, 
and considering State and employer perspectives, shall, by rule, 
designate a data exchange standard for any category of information 
required under title III, title XII, or this title.

    ``(2) Data exchange standards designated under paragraph (1) shall, 
to the extent practicable, be nonproprietary and interoperable.
    ``(3) In designating data exchange standards under this subsection, 
the Secretary of Labor shall, to the extent practicable, incorporate--
            ``(A) interoperable standards developed and maintained by an 
        international voluntary consensus standards body, as defined by 
        the Office of Management and Budget, such as the International 
        Organization for Standardization;
            ``(B) interoperable standards developed and maintained by 
        intergovernmental partnerships, such as the National Information 
        Exchange Model; and
            ``(C) interoperable standards developed and maintained by 
        Federal entities with authority over contracting and financial 
        assistance, such as the Federal Acquisition Regulations Council.

[[Page 126 STAT. 162]]

                 ``Data Exchange Standards for Reporting

    ``(b)(1) The Secretary of Labor, in consultation with an interagency 
work group established by the Office of Management and Budget, and 
considering State and employer perspectives, shall, by rule, designate 
data exchange standards to govern the reporting required under title 
III, title XII, or this title.
    ``(2) The data exchange standards required by paragraph (1) shall, 
to the extent practicable--
            ``(A) incorporate a widely accepted, nonproprietary, 
        searchable, computer-readable format;
            ``(B) be consistent with and implement applicable accounting 
        principles; and
            ``(C) be capable of being continually upgraded as necessary.

    ``(3) In designating reporting standards under this subsection, the 
Secretary of Labor shall, to the extent practicable, incorporate 
existing nonproprietary standards, such as the eXtensible Markup 
Language.''.
    (b) <<NOTE: 42 USC 1111 note. Time periods.>>  Effective Dates.--
            (1) Data exchange standards.--The Secretary of Labor shall 
        issue a proposed rule under section 911(a)(1) of the Social 
        Security Act (as added by subsection (a)) within 12 months after 
        the date of the enactment of this section, and shall issue a 
        final rule under such section 911(a)(1), after public comment, 
        within 24 months after such date of enactment.
            (2) Data reporting standards.--The reporting standards 
        required under section 911(b)(1) of such Act (as so added) shall 
        become effective with respect to reports required in the first 
        reporting period, after the effective date of the final rule 
        referred to in paragraph (1) of this subsection, for which the 
        authority for data collection and reporting is established or 
        renewed under the Paperwork Reduction Act.
SEC. 2105. DRUG TESTING OF APPLICANTS.

    Section 303 of the Social Security <<NOTE: 42 USC 305.>> Act is 
amended by adding at the end the following:

    ``(l)(1) Nothing in this Act or any other provision of Federal law 
shall be considered to prevent a State from enacting legislation to 
provide for--
            ``(A) testing an applicant for unemployment compensation for 
        the unlawful use of controlled substances as a condition for 
        receiving such compensation, if such applicant--
                    ``(i) was terminated from employment with the 
                applicant's most recent employer (as defined under the 
                State law) because of the unlawful use of controlled 
                substances; or
                    ``(ii) <<NOTE: Regulations.>>  is an individual for 
                whom suitable work (as defined under the State law) is 
                only available in an occupation that regularly conducts 
                drug testing (as determined under regulations issued by 
                the Secretary of Labor); or
            ``(B) denying such compensation to such applicant on the 
        basis of the result of the testing conducted by the State under 
        legislation described in subparagraph (A).

    ``(2) <<NOTE: Definitions.>>  For purposes of this subsection--
            ``(A) the term `unemployment compensation' has the meaning 
        given such term in subsection (d)(2)(A); and

[[Page 126 STAT. 163]]

            ``(B) the term `controlled substance' has the meaning given 
        such term in section 102 of the Controlled Substances Act (21 
        U.S.C. 802).''.

 Subtitle B--Provisions <<NOTE: Unemployment Benefits Extension Act of 
2012.>> Relating To Extended Benefits
SEC. 2121. <<NOTE: 26 USC 1 note.>> SHORT TITLE.

    This subtitle may be cited as the ``Unemployment Benefits Extension 
Act of 2012''.
SEC. 2122. EXTENSION AND MODIFICATION OF EMERGENCY UNEMPLOYMENT 
                          COMPENSATION PROGRAM.

    (a) Extension.--Section 4007 of the Supplemental Appropriations Act, 
2008 (Public Law 110-252; 26 U.S.C. 3304 note) is amended--
            (1) in subsection (a)--
                    (A) by striking ``Except as provided in subsection 
                (b), an'' and inserting ``An''; and
                    (B) by striking ``March 6, 2012'' and inserting 
                ``January 2, 2013''; and
            (2) by striking subsection (b) and inserting the following:

    ``(b) Termination.--No compensation under this title shall be 
payable for any week subsequent to the last week described in subsection 
(a).''.
    (b) <<NOTE: 26 USC 3304 note.>>  Modifications Relating to 
Triggers.--
            (1) For second-tier emergency unemployment compensation.--
        Section 4002(c) of such Act is amended--
                    (A) in the subsection heading, by striking ``Special 
                Rule'' and inserting ``Second-tier Emergency 
                Unemployment Compensation'';
                    (B) in paragraph (1), by striking ``At'' and all 
                that follows through ``augmented by an amount'' and 
                inserting ``If, at the time that the amount established 
                in an individual's account under subsection (b) is 
                exhausted or at any time thereafter, such individual's 
                State is in an extended benefit period (as determined 
                under paragraph (2)), such account shall be augmented by 
                an amount (hereinafter `second-tier emergency 
                unemployment compensation')'';
                    (C) by redesignating paragraph (2) as paragraph (4); 
                and
                    (D) by inserting after paragraph (1) the following:
            ``(2) <<NOTE: Applicability.>>  Extended benefit period.--
        For purposes of paragraph (1), a State shall be considered to be 
        in an extended benefit period, as of any given time, if such a 
        period would then be in effect for such State under such Act 
        if--
                    ``(A) section 203(f) of the Federal-State Extended 
                Unemployment Compensation Act of 1970 were applied to 
                such State (regardless of whether the State by law had 
                provided for such application); and
                    ``(B) such section 203(f)--
                          ``(i) were applied by substituting the 
                      applicable percentage under paragraph (3) for `6.5 
                      percent' in paragraph (1)(A)(i) thereof; and
                          ``(ii) did not include the requirement under 
                      paragraph (1)(A)(ii) thereof.

[[Page 126 STAT. 164]]

            ``(3) Applicable percentage.--The applicable percentage 
        under this paragraph is, for purposes of determining if a State 
        is in an extended benefit period as of a date occurring in a 
        week ending--
                    ``(A) before June 1, 2012, 0 percent; and
                    ``(B) after the last week under subparagraph (A), 6 
                percent.''.
            (2) For third-tier emergency unemployment compensation.--
        Section 4002(d) of such Act is amended--
                    (A) in paragraph (2)(A), by striking ``under such 
                Act'' and inserting ``under the Federal-State Extended 
                Unemployment Compensation Act of 1970'';
                    (B) in paragraph (2)(B)(ii)(I), by striking the 
                matter after ``substituting'' and before ``in paragraph 
                (1)(A)(i) thereof'' and inserting ``the applicable 
                percentage under paragraph (3) for `6.5 percent' '';
                    (C) by redesignating paragraph (3) as paragraph (4); 
                and
                    (D) by inserting after paragraph (2) the following:
            ``(3) Applicable percentage.--The applicable percentage 
        under this paragraph is, for purposes of determining if a State 
        is in an extended benefit period as of a date occurring in a 
        week ending--
                    ``(A) before June 1, 2012, 6 percent; and
                    ``(B) after the last week under subparagraph (A), 7 
                percent.''.
            (3) For fourth-tier emergency unemployment compensation.--
        Section 4002(e) of such Act is amended--
                    (A) in paragraph (2)(A), by striking ``under such 
                Act'' and inserting ``under the Federal-State Extended 
                Unemployment Compensation Act of 1970'';
                    (B) in paragraph (2)(B)(ii)(I), by striking the 
                matter after ``substituting'' and before ``in paragraph 
                (1)(A)(i) thereof'' and inserting ``the applicable 
                percentage under paragraph (3) for `6.5 percent' '';
                    (C) by redesignating paragraph (3) as paragraph (4); 
                and
                    (D) by inserting after paragraph (2) the following:
            ``(3) Applicable percentage.--The applicable percentage 
        under this paragraph is, for purposes of determining if a State 
        is in an extended benefit period as of a date occurring in a 
        week ending--
                    ``(A) before June 1, 2012, 8.5 percent; and
                    ``(B) after the last week under subparagraph (A), 9 
                percent.''.

    (c) <<NOTE: 26 USC 3304 note.>>  Modifications Relating to Weeks of 
Emergency Unemployment Compensation.--
            (1) Number of weeks in first tier beginning after september 
        2, 2012.--Section 4002(b) of such Act is amended--
                    (A) by redesignating paragraph (2) as paragraph (3); 
                and
                    (B) by inserting after paragraph (1) the following:
            ``(2) <<NOTE: Applicability.>>  Special rule relating to 
        amounts established in an account as of a week ending after 
        september 2, 2012.--Notwithstanding any provision of paragraph 
        (1), in the case of any account established as of a week ending 
        after September 2, 2012--

[[Page 126 STAT. 165]]

                    ``(A) paragraph (1)(A) shall be applied by 
                substituting `54 percent' for `80 percent'; and
                    ``(B) paragraph (1)(B) shall be applied by 
                substituting `14 weeks' for `20 weeks'.''.
            (2) Number of weeks in third tier beginning after september 
        2, 2012.--Section 4002(d) of such Act is amended by adding after 
        paragraph (4) (as so redesignated by subsection (b)(2)(C)) the 
        following:
            ``(5) <<NOTE: Applicability.>>  Special rule relating to 
        amounts added to an account as of a week ending after september 
        2, 2012.--Notwithstanding any provision of paragraph (1), if 
        augmentation under this subsection occurs as of a week ending 
        after September 2, 2012--
                    ``(A) paragraph (1)(A) shall be applied by 
                substituting `35 percent' for `50 percent'; and
                    ``(B) paragraph (1)(B) shall be applied by 
                substituting `9 times' for `13 times'.''.
            (3) Number of weeks in fourth tier.--Section 4002(e) of such 
        Act is amended by adding after paragraph (4) (as so redesignated 
        by subsection (b)(3)(C)) the following:
            ``(5) Special rules relating to amounts added to an 
        account.--
                    ``(A) March to may of 2012.--
                          ``(i) <<NOTE: Applicability.>>  Special 
                      rule.--Notwithstanding any provision of paragraph 
                      (1) but subject to the following 2 sentences, if 
                      augmentation under this subsection occurs as of a 
                      week ending after the date of enactment of this 
                      paragraph and before June 1, 2012 (or if, as of 
                      such date of enactment, any fourth-tier amounts 
                      remain in the individual's account)--
                                    ``(I) paragraph (1)(A) shall be 
                                applied by substituting `62 percent' for 
                                `24 percent'; and
                                    ``(II) paragraph (1)(B) shall be 
                                applied by substituting `16 times' for 
                                `6 times'.
                      The preceding sentence shall apply only if, at the 
                      time that the account would be augmented under 
                      this subparagraph, such individual's State is not 
                      in an extended benefit period as determined under 
                      the Federal-State Extended Unemployment 
                      Compensation Act of 1970. In no event shall the 
                      total amount added to the account of an individual 
                      under this subparagraph cause, in the case of an 
                      individual described in the parenthetical matter 
                      in the first sentence of this clause, the sum of 
                      the total amount previously added to such 
                      individual's account under this subsection (as in 
                      effect before the date of enactment of this 
                      paragraph) and any further amounts added as a 
                      result of the enactment of this clause, to exceed 
                      the total amount allowable under subclause (I) or 
                      (II), as the case may be.
                          ``(ii) Limitation.--Notwithstanding any other 
                      provision of this title, the amounts added to the 
                      account of an individual under this subparagraph 
                      may not cause the sum of the amounts previously 
                      established in or added to such account, plus any 
                      weeks of extended benefits provided to such 
                      individual under the Federal-State Extended 
                      Unemployment Compensation Act of

[[Page 126 STAT. 166]]

                      1970 (based on the same exhaustion of regular 
                      compensation under section 4001(b)(1)), to in the 
                      aggregate exceed the lesser of--
                                    ``(I) 282 percent of the total 
                                amount of regular compensation 
                                (including dependents' allowances) 
                                payable to the individual during the 
                                individual's benefit year under the 
                                State law; or
                                    ``(II) 73 times the individual's 
                                average weekly benefit amount (as 
                                determined under subsection (b)(3)) for 
                                the benefit year.
                    ``(B) <<NOTE: Applicability.>>  After august of 
                2012.--Notwithstanding any provision of paragraph (1), 
                if augmentation under this subsection occurs as of a 
                week ending after September 2, 2012--
                          ``(i) paragraph (1)(A) shall be applied by 
                      substituting `39 percent' for `24 percent'; and
                          ``(ii) paragraph (1)(B) shall be applied by 
                      substituting `10 times' for `6 times'.''.

    (d) <<NOTE: 26 USC 3304 note.>>  Order of Payments Requirement.--
            (1) In general.--Section 4001(e) of such Act is amended to 
        read as follows:

    ``(e) <<NOTE: Applicability. Determination.>>  Coordination Rule.--
An agreement under this section shall apply with respect to a State only 
upon a determination by the Secretary that, under the State law or other 
applicable rules of such State, the payment of extended compensation for 
which an individual is otherwise eligible must be deferred until after 
the payment of any emergency unemployment compensation under section 
4002, as amended by the Unemployment Benefits Extension Act of 2012, for 
which the individual is concurrently eligible.''.
            (2) Technical and conforming amendments.--Section 4001(b)(2) 
        of such Act is amended--
                    (A) by striking ``or extended compensation''; and
                    (B) by striking ``law (except as provided under 
                subsection (e));'' and inserting ``law;''.

    (e) Funding.--Section 4004(e)(1) of such <<NOTE: 26 USC 3304 
note.>> Act is amended--
            (1) in subparagraph (G), by striking ``and'' at the end; and
            (2) by inserting after subparagraph (H) the following:
                    ``(I) the amendments made by section 2122 of the 
                Unemployment Benefits Extension Act of 2012; and''.

    (f) <<NOTE: 26 USC 3304 note.>>  Effective Dates.--
            (1) In general.--The amendments made by subsections (b), 
        (c), and (d) shall take effect as of February 28, 2012, and 
        shall apply with respect to weeks of unemployment beginning 
        after that date.
            (2) Week defined.--For purposes of this subsection, the term 
        ``week'' has the meaning given such term under section 4006 of 
        the Supplemental Appropriations Act, 2008.
SEC. 2123. TEMPORARY EXTENSION OF EXTENDED BENEFIT PROVISIONS.

    (a) In General.--Section 2005 of the Assistance for Unemployed 
Workers and Struggling Families Act, as contained in Public Law 111-5 
(26 U.S.C. 3304 note), is amended--
            (1) by striking ``March 7, 2012'' each place it appears and 
        inserting ``December 31, 2012''; and

[[Page 126 STAT. 167]]

            (2) in subsection (c), by striking ``August 15, 2012'' and 
        inserting ``June 30, 2013''.

    (b) Extension of Matching for States With No Waiting Week.--Section 
5 of the Unemployment Compensation Extension Act of 2008 (Public Law 
110-449; 26 U.S.C. 3304 note) is amended by striking ``August 15, 2012'' 
and inserting ``June 30, 2013''.
    (c) Extension of Modification of Indicators Under the Extended 
Benefit Program.--Section 203 of the Federal-State Extended Unemployment 
Compensation Act of 1970 (26 U.S.C. 3304 note) is amended--
            (1) in subsection (d), by striking ``February 29, 2012'' and 
        inserting ``December 31, 2012''; and
            (2) in subsection (f)(2), by striking ``February 29, 2012'' 
        and inserting ``December 31, 2012''.

    (d) <<NOTE: 26 USC 3304 note.>>  Effective Date.--The amendments 
made by this section shall take effect as if included in the enactment 
of the Temporary Payroll Tax Cut Continuation Act of 2011 (Public Law 
112-78).
SEC. 2124. ADDITIONAL EXTENDED UNEMPLOYMENT BENEFITS UNDER THE 
                          RAILROAD UNEMPLOYMENT INSURANCE ACT.

    (a) Extension.--Section 2(c)(2)(D)(iii) of the Railroad Unemployment 
Insurance Act, as added by section 2006 of the American Recovery and 
Reinvestment Act of 2009 (Public Law 111-5) and as amended by section 9 
of the Worker, Homeownership, and Business Assistance Act of 2009 
(Public Law 111-92), section 505 of the Tax Relief, Unemployment 
Insurance Reauthorization, and Job Creation Act of 2010 (Public Law 111-
312), and section 202 of the Temporary Payroll Tax Cut Continuation Act 
of 2011 (Public Law 112-78), <<NOTE: 45 USC 352.>> is amended--
            (1) by striking ``August 31, 2011'' and inserting ``June 30, 
        2012''; and
            (2) by striking ``February 29, 2012'' and inserting 
        ``December 31, 2012''.

    (b) Clarification on Authority to Use Funds.--Funds appropriated 
under either the first or second sentence of clause (iv) of section 
2(c)(2)(D) of the Railroad Unemployment Insurance Act shall be available 
to cover the cost of additional extended unemployment benefits provided 
under such section 2(c)(2)(D) by reason of the amendments made by 
subsection (a) as well as to cover the cost of such benefits provided 
under such section 2(c)(2)(D), as in effect on the day before the date 
of enactment of this Act.
    (c) <<NOTE: Appropriation authorization.>>  Funding for 
Administration.--Out of any funds in the Treasury not otherwise 
appropriated, there are appropriated to the Railroad Retirement Board 
$500,000 for administrative expenses associated with the payment of 
additional extended unemployment benefits provided under section 
2(c)(2)(D) of the Railroad Unemployment Insurance Act by reason of the 
amendments made by subsection (a), to remain available until expended.

[[Page 126 STAT. 168]]

   Subtitle C--Improving Reemployment Strategies Under the Emergency 
                    Unemployment Compensation Program

SEC. 2141. IMPROVED WORK SEARCH FOR THE LONG-TERM UNEMPLOYED.

    (a) In General.--Section 4001(b) of the Supplemental Appropriations 
Act, 2008 (Public Law 110-252; 26 U.S.C. 3304 note) is amended--
            (1) by striking ``and'' at the end of paragraph (2);
            (2) by striking the period at the end of paragraph (3) and 
        inserting ``; and''; and
            (3) by adding at the end the following:
            ``(4) are able to work, available to work, and actively 
        seeking work.''.

    (b) Actively Seeking Work.--Section 4001 of such Act is amended by 
adding at the end the following:
    ``(h) Actively Seeking Work.--
            ``(1) <<NOTE: Definition.>>  In general.--For purposes of 
        subsection (b)(4), the term `actively seeking work' means, with 
        respect to any individual, that such individual--
                    ``(A) is registered for employment services in such 
                a manner and to such extent as prescribed by the State 
                agency;
                    ``(B) has engaged in an active search for employment 
                that is appropriate in light of the employment available 
                in the labor market, the individual's skills and 
                capabilities, and includes a number of employer contacts 
                that is consistent with the standards communicated to 
                the individual by the State;
                    ``(C) has maintained a record of such work search, 
                including employers contacted, method of contact, and 
                date contacted; and
                    ``(D) when requested, has provided such work search 
                record to the State agency.
            ``(2) <<NOTE: Claims.>>  Random auditing.--The Secretary 
        shall establish for each State a minimum number of claims for 
        which work search records must be audited on a random basis in 
        any given week.''.
SEC. 2142. REEMPLOYMENT SERVICES AND REEMPLOYMENT AND ELIGIBILITY 
                          ASSESSMENT ACTIVITIES.

    (a) Provision of Services and Activities.--Section 4001 of such Act, 
as amended by section 2141(b), is further amended by adding at the end 
the following:
    ``(i) Provision of Services and Activities.--
            ``(1) In general.--An agreement under this section shall 
        require the following:
                    ``(A) The State which is party to such agreement 
                shall provide reemployment services and reemployment and 
                eligibility assessment activities to each individual--
                          ``(i) who, on or after the 30th day after the 
                      date of enactment of the Extended Benefits, 
                      Reemployment, and Program Integrity Improvement 
                      Act, begins receiving amounts described in 
                      subsections (b) and (c); and

[[Page 126 STAT. 169]]

                          ``(ii) while such individual continues to 
                      receive emergency unemployment compensation under 
                      this title.
                    ``(B) As a condition of eligibility for emergency 
                unemployment compensation for any week--
                          ``(i) a claimant who has been duly referred to 
                      reemployment services shall participate in such 
                      services; and
                          ``(ii) a claimant shall be actively seeking 
                      work (determined applying subsection (i)).
            ``(2) Description of services and activities.--The 
        reemployment services and in-person reemployment and eligibility 
        assessment activities provided to individuals receiving 
        emergency unemployment compensation described in paragraph (1)--
                    ``(A) shall include--
                          ``(i) the provision of labor market and career 
                      information;
                          ``(ii) an assessment of the skills of the 
                      individual;
                          ``(iii) orientation to the services available 
                      through the one-stop centers established under 
                      title I of the Workforce Investment Act of 1998; 
                      and
                          ``(iv) review of the eligibility of the 
                      individual for emergency unemployment compensation 
                      relating to the job search activities of the 
                      individual; and
                    ``(B) may include the provision of--
                          ``(i) comprehensive and specialized 
                      assessments;
                          ``(ii) individual and group career counseling;
                          ``(iii) training services;
                          ``(iv) additional reemployment services; and
                          ``(v) job search counseling and the 
                      development or review of an individual 
                      reemployment plan that includes participation in 
                      job search activities and appropriate workshops.
            ``(3) Participation requirement.--As a condition of 
        continuing eligibility for emergency unemployment compensation 
        for any week, an individual who has been referred to 
        reemployment services or reemployment and eligibility assessment 
        activities under this subsection shall participate in such 
        services or activities, unless the State agency responsible for 
        the administration of State unemployment compensation law 
        determines that--
                    ``(A) such individual has completed participating in 
                such services or activities; or
                    ``(B) there is justifiable cause for failure to 
                participate or to complete participating in such 
                services or activities, as determined in accordance with 
                guidance to be issued by the Secretary.''.

    (b) <<NOTE: Deadline. 26 USC 3304 note.>>  Issuance of Guidance.--
Not later than 30 days after the date of enactment of this Act, the 
Secretary shall issue guidance on the implementation of the reemployment 
services and reemployment and eligibility assessment activities required 
to be provided under the amendment made by subsection (a).

    (c) Funding.--
            (1) In general.--Section 4004(c) of the Supplemental 
        Appropriations Act, 2008 (Public Law 110-252; 26 U.S.C. 3304 
        note) is amended--

[[Page 126 STAT. 170]]

                    (A) by striking ``States.--There'' and inserting the 
                following: ``States.--
            ``(1) Administration.--There''; and
                    (B) by adding at the end the following new 
                paragraph:
            ``(2) Reemployment services and reemployment and eligibility 
        assessment activities.--
                    ``(A) Appropriation.--There are appropriated from 
                the general fund of the Treasury, for the period of 
                fiscal year 2012 through fiscal year 2013, out of the 
                employment security administration account (as 
                established by section 901(a) of the Social Security 
                Act), such sums as determined by the Secretary of Labor 
                in accordance with subparagraph (B) to assist States in 
                providing reemployment services and reemployment and 
                eligibility assessment activities described in section 
                4001(h)(2).
                    ``(B) Determination of total amount.--The amount 
                referred to in subparagraph (A) is the amount the 
                Secretary of Labor estimates is equal to--
                          ``(i) the number of individuals who will 
                      receive reemployment services and reemployment 
                      eligibility and assessment activities described in 
                      section 4001(h)(2) in all States through the date 
                      specified in section 4007(b)(3); multiplied by
                          ``(ii) $85.
                    ``(C) Distribution among states.--Of the amounts 
                appropriated under subparagraph (A), the Secretary of 
                Labor shall distribute amounts to each State, in 
                accordance with section 4003(c), that the Secretary 
                estimates is equal to--
                          ``(i) the number of individuals who will 
                      receive reemployment services and reemployment and 
                      eligibility assessment activities described in 
                      section 4001(h)(2) in such State through the date 
                      specified in section 4007(b)(3); multiplied by
                          ``(ii) $85.''.
            (2) Transfer of funds.--Section 4004(e) of the Supplemental 
        Appropriations Act, 2008 (Public Law 110-252; 26 U.S.C. 3304 
        note) is amended--
                    (A) in paragraph (1)(G), by striking ``and'' at the 
                end;
                    (B) in paragraph (2), by striking the period at the 
                end and inserting ``; and''; and
                    (C) by adding at the end the following paragraph:
            ``(3) to the Employment Security Administration account (as 
        established by section 901(a) of the Social Security Act) such 
        sums as the Secretary of Labor determines to be necessary in 
        accordance with subsection (c)(2) to assist States in providing 
        reemployment services and reemployment eligibility and 
        assessment activities described in section 4001(h)(2).''.
SEC. 2143. PROMOTING PROGRAM INTEGRITY THROUGH BETTER RECOVERY OF 
                          OVERPAYMENTS.

    Section 4005(c)(1) of the Supplemental Appropriations Act, 2008 
(Public Law 110-252; 26 U.S.C. 3304 note) is amended--
            (1) by striking ``may'' and inserting ``shall''; and
            (2) by striking ``except that'' and all that follows through 
        ``made'' and inserting ``in accordance with the same procedures

[[Page 126 STAT. 171]]

        as apply to the recovery of overpayments of regular unemployment 
        benefits paid by the State''.
SEC. 2144. RESTORE STATE FLEXIBILITY TO IMPROVE UNEMPLOYMENT 
                          PROGRAM SOLVENCY.

    Subsection (g) of section 4001 of the Supplemental Appropriations 
Act, 2008 (Public Law 110-252; 26 U.S.C. 3304 note) shall not apply with 
respect to a State that has enacted a law before March 1, 2012, that, 
upon taking effect, would violate such subsection.

        Subtitle D--Short-Time <<NOTE: Layoff Prevention Act of 
2012.>> Compensation Program
SEC. 2160. <<NOTE: 26 USC 1 note.>>  SHORT TITLE.

    This subtitle may be cited as the ``Layoff Prevention Act of 2012''.
SEC. 2161. TREATMENT OF SHORT-TIME COMPENSATION PROGRAMS.

    (a) Definition.--
            (1) In general.--Section 3306 of the Internal Revenue Code 
        of 1986 (26 U.S.C. 3306) is amended by adding at the end the 
        following new subsection:

    ``(v) <<NOTE: Definition.>>  Short-Time Compensation Program.--For 
purposes of this part, the term `short-time compensation program' means 
a program under which--
            ``(1) the participation of an employer is voluntary;
            ``(2) an employer reduces the number of hours worked by 
        employees in lieu of layoffs;
            ``(3) such employees whose workweeks have been reduced by at 
        least 10 percent, and by not more than the percentage, if any, 
        that is determined by the State to be appropriate (but in no 
        case more than 60 percent), are not disqualified from 
        unemployment compensation;
            ``(4) the amount of unemployment compensation payable to any 
        such employee is a pro rata portion of the unemployment 
        compensation which would otherwise be payable to the employee if 
        such employee were unemployed;
            ``(5) such employees meet the availability for work and work 
        search test requirements while collecting short-time 
        compensation benefits, by being available for their workweek as 
        required by the State agency;
            ``(6) eligible employees may participate, as appropriate, in 
        training (including employer-sponsored training or worker 
        training funded under the Workforce Investment Act of 1998) to 
        enhance job skills if such program has been approved by the 
        State agency;
            ``(7) <<NOTE: Certification.>>  the State agency shall 
        require employers to certify that if the employer provides 
        health benefits and retirement benefits under a defined benefit 
        plan (as defined in section 414(j)) or contributions under a 
        defined contribution plan (as defined in section 414(i)) to any 
        employee whose workweek is reduced under the program that such 
        benefits will continue to be provided to employees participating 
        in the short-time compensation program under the same terms and 
        conditions as though the workweek of such employee had not been 
        reduced

[[Page 126 STAT. 172]]

        or to the same extent as other employees not participating in 
        the short-time compensation program;
            ``(8) <<NOTE: Plans.>>  the State agency shall require an 
        employer to submit a written plan describing the manner in which 
        the requirements of this subsection will be implemented 
        (including a plan for giving advance notice, where feasible, to 
        an employee whose workweek is to be reduced) together with an 
        estimate of the number of layoffs that would have occurred 
        absent the ability to participate in short-time compensation and 
        such other information as the Secretary of Labor determines is 
        appropriate;
            ``(9) the terms of the employer's written plan and 
        implementation shall be consistent with employer obligations 
        under applicable Federal and State laws; and
            ``(10) upon request by the State and approval by the 
        Secretary of Labor, only such other provisions are included in 
        the State law that are determined to be appropriate for purposes 
        of a short-time compensation program.''.
            (2) <<NOTE: 26 USC 3306 note.>>  Effective date.--Subject to 
        paragraph (3), the amendment made by paragraph (1) shall take 
        effect on the date of the enactment of this Act.
            (3) <<NOTE: 26 USC 3306 note.>>  Transition period for 
        existing programs.--In the case of a State that is administering 
        a short-time compensation program as of the date of the 
        enactment of this Act and the State law cannot be administered 
        consistent with the amendment made by paragraph (1), such 
        amendment shall take effect on the earlier of--
                    (A) the date the State changes its State law in 
                order to be consistent with such amendment; or
                    (B) the date that is 2 years and 6 months after the 
                date of the enactment of this Act.

    (b) Conforming Amendments.--
            (1) Internal revenue code of 1986.--
                    (A) Subparagraph (E) of section 3304(a)(4) of the 
                Internal Revenue Code of <<NOTE: 26 USC 3304.>> 1986 is 
                amended to read as follows:
                    ``(E) amounts may be withdrawn for the payment of 
                short-time compensation under a short-time compensation 
                program (as defined under section 3306(v));''.
                    (B) Subsection (f) of section 3306 of the Internal 
                Revenue Code of 1986 is amended--
                          (i) by striking paragraph (5) (relating to 
                      short-time compensation) and inserting the 
                      following new paragraph:
            ``(5) amounts may be withdrawn for the payment of short-time 
        compensation under a short-time compensation program (as defined 
        in subsection (v)); and''; and
                          (ii) by redesignating paragraph (5) (relating 
                      to self-employment assistance program) as 
                      paragraph (6).
            (2) Social security act.--Section 303(a)(5) of the Social 
        Security <<NOTE: 42 USC 503.>> Act is amended by striking ``the 
        payment of short-time compensation under a plan approved by the 
        Secretary of Labor'' and inserting ``the payment of short-time 
        compensation under a short-time compensation program (as defined 
        in section 3306(v) of the Internal Revenue Code of 1986)''.
            (3) <<NOTE: Repeal. 26 USC 3304 note.>>  Unemployment 
        compensation amendments of 1992.--Subsections (b) through (d) of 
        section 401 of the Unemployment

[[Page 126 STAT. 173]]

        Compensation Amendments of 1992 (26 U.S.C. 3304 note) are 
        repealed.
SEC. 2162. <<NOTE: 26 USC 3304 note.>>  TEMPORARY FINANCING OF 
                          SHORT-TIME COMPENSATION PAYMENTS IN 
                          STATES WITH PROGRAMS IN LAW.

    (a) Payments to States.--
            (1) In general.--Subject to paragraph (3), there shall be 
        paid to a State an amount equal to 100 percent of the amount of 
        short-time compensation paid under a short-time compensation 
        program (as defined in section 3306(v) of the Internal Revenue 
        Code of 1986, as added by section 2161(a)) under the provisions 
        of the State law.
            (2) Terms of payments.--Payments made to a State under 
        paragraph (1) shall be payable by way of reimbursement in such 
        amounts as the Secretary estimates the State will be entitled to 
        receive under this section for each calendar month, reduced or 
        increased, as the case may be, by any amount by which the 
        Secretary finds that the Secretary's estimates for any prior 
        calendar month were greater or less than the amounts which 
        should have been paid to the State. Such estimates may be made 
        on the basis of such statistical, sampling, or other method as 
        may be agreed upon by the Secretary and the State agency of the 
        State involved.
            (3) Limitations on payments.--
                    (A) General payment limitations.--No payments shall 
                be made to a State under this section for short-time 
                compensation paid to an individual by the State during a 
                benefit year in excess of 26 times the amount of regular 
                compensation (including dependents' allowances) under 
                the State law payable to such individual for a week of 
                total unemployment.
                    (B) Employer limitations.--No payments shall be made 
                to a State under this section for benefits paid to an 
                individual by the State under a short-time compensation 
                program if such individual is employed by the 
                participating employer on a seasonal, temporary, or 
                intermittent basis.

    (b) Applicability.--
            (1) In general.--Payments to a State under subsection (a) 
        shall be available for weeks of unemployment--
                    (A) <<NOTE: Effective date.>>  beginning on or after 
                the date of the enactment of this Act; and
                    (B) <<NOTE: Termination date.>>  ending on or before 
                the date that is 3 years and 6 months after the date of 
                the enactment of this Act.
            (2) Three-year funding limitation for combined payments 
        under this section and section 2163.--States may receive 
        payments under this section and section 2163 with respect to a 
        total of not more than 156 weeks.

    (c) Two-Year Transition Period for Existing Programs.--During any 
period that the transition provision under section 2161(a)(3) is 
applicable to a State with respect to a short-time compensation program, 
such State shall be eligible for payments under this section. Subject to 
paragraphs (1)(B) and (2) of subsection (b), if at any point after the 
date of the enactment of this Act the State enacts a State law providing 
for the payment of short-time compensation under a short-time 
compensation program that meets the definition of such a program under 
section 3306(v) of the Internal Revenue Code of 1986, as added by 
section 2161(a),

[[Page 126 STAT. 174]]

the State shall be eligible for payments under this section after the 
effective date of such enactment.
    (d) Funding and Certifications.--
            (1) <<NOTE: Appropriation authorization.>>  Funding.--There 
        are appropriated, out of moneys in the Treasury not otherwise 
        appropriated, such sums as may be necessary for purposes of 
        carrying out this section.
            (2) Certifications.--The Secretary shall from time to time 
        certify to the Secretary of the Treasury for payment to each 
        State the sums payable to such State under this section.

    (e) Definitions.--In this section:
            (1) Secretary.--The term ``Secretary'' means the Secretary 
        of Labor.
            (2) State; state agency; state law.--The terms ``State'', 
        ``State agency'', and ``State law'' have the meanings given 
        those terms in section 205 of the Federal-State Extended 
        Unemployment Compensation Act of 1970 (26 U.S.C. 3304 note).
SEC. 2163. <<NOTE: 26 USC 3304 note.>>  TEMPORARY FINANCING OF 
                          SHORT-TIME COMPENSATION AGREEMENTS.

    (a) Federal-State Agreements.--
            (1) In general.--Any State which desires to do so may enter 
        into, and participate in, an agreement under this section with 
        the Secretary provided that such State's law does not provide 
        for the payment of short-time compensation under a short-time 
        compensation program (as defined in section 3306(v) of the 
        Internal Revenue Code of 1986, as added by section 2161(a)).
            (2) <<NOTE: Notice.>>  Ability to terminate.--Any State 
        which is a party to an agreement under this section may, upon 
        providing 30 days' written notice to the Secretary, terminate 
        such agreement.

    (b) Provisions of Federal-State Agreement.--
            (1) In general.--Any agreement under this section shall 
        provide that the State agency of the State will make payments of 
        short-time compensation under a plan approved by the State. Such 
        plan shall provide that payments are made in accordance with the 
        requirements under section 3306(v) of the Internal Revenue Code 
        of 1986, as added by section 2161(a).
            (2) Limitations on plans.--
                    (A) General payment limitations.--A short-time 
                compensation plan approved by a State shall not permit 
                the payment of short-time compensation to an individual 
                by the State during a benefit year in excess of 26 times 
                the amount of regular compensation (including 
                dependents' allowances) under the State law payable to 
                such individual for a week of total unemployment.
                    (B) Employer limitations.--A short-time compensation 
                plan approved by a State shall not provide payments to 
                an individual if such individual is employed by the 
                participating employer on a seasonal, temporary, or 
                intermittent basis.
            (3) Employer payment of costs.--Any short-time compensation 
        plan entered into by an employer must provide that the employer 
        will pay the State an amount equal to one-half of the amount of 
        short-time compensation paid under such plan. Such amount shall 
        be deposited in the State's unemployment fund and shall not be 
        used for purposes of calculating

[[Page 126 STAT. 175]]

        an employer's contribution rate under section 3303(a)(1) of the 
        Internal Revenue Code of 1986.

    (c) Payments to States.--
            (1) In general.--There shall be paid to each State with an 
        agreement under this section an amount equal to--
                    (A) one-half of the amount of short-time 
                compensation paid to individuals by the State pursuant 
                to such agreement; and
                    (B) any additional administrative expenses incurred 
                by the State by reason of such agreement (as determined 
                by the Secretary).
            (2) Terms of payments.--Payments made to a State under 
        paragraph (1) shall be payable by way of reimbursement in such 
        amounts as the Secretary estimates the State will be entitled to 
        receive under this section for each calendar month, reduced or 
        increased, as the case may be, by any amount by which the 
        Secretary finds that the Secretary's estimates for any prior 
        calendar month were greater or less than the amounts which 
        should have been paid to the State. Such estimates may be made 
        on the basis of such statistical, sampling, or other method as 
        may be agreed upon by the Secretary and the State agency of the 
        State involved.
            (3) <<NOTE: Appropriation authorization.>>  Funding.--There 
        are appropriated, out of moneys in the Treasury not otherwise 
        appropriated, such sums as may be necessary for purposes of 
        carrying out this section.
            (4) Certifications.--The Secretary shall from time to time 
        certify to the Secretary of the Treasury for payment to each 
        State the sums payable to such State under this section.

    (d) Applicability.--
            (1) In general.--An agreement entered into under this 
        section shall apply to weeks of unemployment--
                    (A) <<NOTE: Effective date.>>  beginning on or after 
                the date on which such agreement is entered into; and
                    (B) <<NOTE: Termination date.>>  ending on or before 
                the date that is 2 years and 13 weeks after the date of 
                the enactment of this Act.
            (2) Two-year funding limitation.--States may receive 
        payments under this section with respect to a total of not more 
        than 104 weeks.

    (e) Special Rule.--If a State has entered into an agreement under 
this section and subsequently enacts a State law providing for the 
payment of short-time compensation under a short-time compensation 
program that meets the definition of such a program under section 
3306(v) of the Internal Revenue Code of 1986, as added by section 
2161(a), the State--
            (1) shall not be eligible for payments under this section 
        for weeks of unemployment beginning after the effective date of 
        such State law; and
            (2) subject to paragraphs (1)(B) and (2) of section 2162(b), 
        shall be eligible to receive payments under section 2162 after 
        the effective date of such State law.

    (f) Definitions.--In this section:
            (1) Secretary.--The term ``Secretary'' means the Secretary 
        of Labor.
            (2) State; state agency; state law.--The terms ``State'', 
        ``State agency'', and ``State law'' have the meanings given 
        those terms in section 205 of the Federal-State Extended 
        Unemployment Compensation Act of 1970 (26 U.S.C. 3304 note).

[[Page 126 STAT. 176]]

SEC. 2164. <<NOTE: 26 USC 3304 note.>>  GRANTS FOR SHORT-TIME 
                          COMPENSATION PROGRAMS.

    (a) Grants.--
            (1) For implementation or improved administration.--The 
        Secretary shall award grants to States that enact short-time 
        compensation programs (as defined in subsection (i)(2)) for the 
        purpose of implementation or improved administration of such 
        programs.
            (2) For promotion and enrollment.--The Secretary shall award 
        grants to States that are eligible and submit plans for a grant 
        under paragraph (1) for such States to promote and enroll 
        employers in short-time compensation programs (as so defined).
            (3) Eligibility.--
                    (A) In general.--The Secretary shall determine 
                eligibility criteria for the grants under paragraphs (1) 
                and (2).
                    (B) Clarification.--A State administering a short-
                time compensation program, including a program being 
                administered by a State that is participating in the 
                transition under the provisions of sections 301(a)(3) 
                and 302(c), that does not meet the definition of a 
                short-time compensation program under section 3306(v) of 
                the Internal Revenue Code of 1986 (as added by 211(a)), 
                and a State with an agreement under section 2163, shall 
                not be eligible to receive a grant under this section 
                until such time as the State law of the State provides 
                for payments under a short-time compensation program 
                that meets such definition and such law.

    (b) Amount of Grants.--
            (1) In general.--The maximum amount available for making 
        grants to a State under paragraphs (1) and (2) shall be equal to 
        the amount obtained by multiplying $100,000,000 (less the amount 
        used by the Secretary under subsection (e)) by the same ratio as 
        would apply under subsection (a)(2)(B) of section 903 of the 
        Social Security Act (42 U.S.C. 1103) for purposes of determining 
        such State's share of any excess amount (as described in 
        subsection (a)(1) of such section) that would have been subject 
        to transfer to State accounts, as of October 1, 2010, under the 
        provisions of subsection (a) of such section.
            (2) Amount available for different grants.--Of the maximum 
        incentive payment determined under paragraph (1) with respect to 
        a State--
                    (A) one-third shall be available for a grant under 
                subsection (a)(1); and
                    (B) two-thirds shall be available for a grant under 
                subsection (a)(2).

    (c) Grant Application and Disbursal.--
            (1) Application.--Any State seeking a grant under paragraph 
        (1) or (2) of subsection (a) shall submit an application to the 
        Secretary at such time, in such manner, and complete with such 
        information as the Secretary may <<NOTE: Deadline.>> require. In 
        no case may the Secretary award a grant under this section with 
        respect to an application that is submitted after December 31, 
        2014.
            (2) <<NOTE: Deadline.>>  Notice.--The Secretary shall, 
        within 30 days after receiving a complete application, notify 
        the State agency of

[[Page 126 STAT. 177]]

        the State of the Secretary's findings with respect to the 
        requirements for a grant under paragraph (1) or (2) (or both) of 
        subsection (a).
            (3) Certification.--If the Secretary finds that the State 
        law provisions meet the requirements for a grant under 
        subsection (a), the Secretary shall thereupon make a 
        certification to that effect to the Secretary of the Treasury, 
        together with a certification as to the amount of the grant 
        payment to be transferred to the State account in the 
        Unemployment Trust Fund (as established in section 904(a) of the 
        Social Security Act (42 U.S.C. 1104(a))) pursuant to 
        that <<NOTE: Deadline.>> finding. The Secretary of the Treasury 
        shall make the appropriate transfer to the State account within 
        7 days after receiving such certification.
            (4) Requirement.--No certification of compliance with the 
        requirements for a grant under paragraph (1) or (2) of 
        subsection (a) may be made with respect to any State whose--
                    (A) State law is not otherwise eligible for 
                certification under section 303 of the Social Security 
                Act (42 U.S.C. 503) or approvable under section 3304 of 
                the Internal Revenue Code of 1986; or
                    (B) <<NOTE: Time period.>>  short-time compensation 
                program is subject to discontinuation or is not 
                scheduled to take effect within 12 months of the 
                certification.

    (d) Use of Funds.--The amount of any grant awarded under this 
section shall be used for the implementation of short-time compensation 
programs and the overall administration of such programs and the 
promotion and enrollment efforts associated with such programs, such as 
through--
            (1) the creation or support of rapid response teams to 
        advise employers about alternatives to layoffs;
            (2) the provision of education or assistance to employers to 
        enable them to assess the feasibility of participating in short-
        time compensation programs; and
            (3) the development or enhancement of systems to automate--
                    (A) the submission and approval of plans; and
                    (B) the filing and approval of new and ongoing 
                short-time compensation claims.

    (e) Administration.--The Secretary is authorized to use 0.25 percent 
of the funds available under subsection (g) to provide for outreach and 
to share best practices with respect to this section and short-time 
compensation programs.
    (f) <<NOTE: Determination. Time period.>>  Recoupment.--The 
Secretary shall establish a process under which the Secretary shall 
recoup the amount of any grant awarded under paragraph (1) or (2) of 
subsection (a) if the Secretary determines that, during the 5-year 
period beginning on the first date that any such grant is awarded to the 
State, the State--
            (1) terminated the State's short-time compensation program; 
        or
            (2) failed to meet appropriate requirements with respect to 
        such program (as established by the Secretary).

    (g) <<NOTE: Appropriation authorization.>>  Funding.--There are 
appropriated, out of moneys in the Treasury not otherwise appropriated, 
to the Secretary, $100,000,000 to carry out this section, to remain 
available without fiscal year limitation.

[[Page 126 STAT. 178]]

    (h) Reporting.--The Secretary may establish reporting requirements 
for States receiving a grant under this section in order to provide 
oversight of grant funds.
    (i) Definitions.--In this section:
            (1) Secretary.--The term ``Secretary'' means the Secretary 
        of Labor.
            (2) Short-time compensation program.--The term ``short-time 
        compensation program'' has the meaning given such term in 
        section 3306(v) of the Internal Revenue Code of 1986, as added 
        by section 2161(a).
            (3) State; state agency; state law.--The terms ``State'', 
        ``State agency'', and ``State law'' have the meanings given 
        those terms in section 205 of the Federal-State Extended 
        Unemployment Compensation Act of 1970 (26 U.S.C. 3304 note).
SEC. 2165. <<NOTE: 26 USC 3304 note.>>  ASSISTANCE AND GUIDANCE IN 
                          IMPLEMENTING PROGRAMS.

    (a) In General.--In order to assist States in establishing, 
qualifying, and implementing short-time compensation programs (as 
defined in section 3306(v) of the Internal Revenue Code of 1986, as 
added by section 2161(a)), the Secretary of Labor (in this section 
referred to as the ``Secretary'') shall--
            (1) develop model legislative language which may be used by 
        States in developing and enacting such programs and periodically 
        review and revise such model legislative language;
            (2) provide technical assistance and guidance in developing, 
        enacting, and implementing such programs;
            (3) <<NOTE: Requirements.>>  establish reporting 
        requirements for States, including reporting on--
                    (A) the number of estimated averted layoffs;
                    (B) the number of participating employers and 
                workers; and
                    (C) such other items as the Secretary of Labor 
                determines are appropriate.

    (b) Model Language and Guidance.--The model language and guidance 
developed under subsection (a) shall allow sufficient flexibility by 
States and participating employers while ensuring accountability and 
program integrity.
    (c) Consultation.--In developing the model legislative language and 
guidance under subsection (a), and in order to meet the requirements of 
subsection (b), the Secretary shall consult with employers, labor 
organizations, State workforce agencies, and other program experts.
SEC. 2166. REPORTS.

    (a) Report.--
            (1) In general.--Not later than 4 years after the date of 
        the enactment of this Act, the Secretary of Labor shall submit 
        to Congress and to the President a report or reports on the 
        implementation of the provisions of this subtitle.
            (2) Requirements.--Any report under paragraph (1) shall at a 
        minimum include the following:
                    (A) A description of best practices by States and 
                employers in the administration, promotion, and use of 
                short-time compensation programs (as defined in section 
                3306(v) of the Internal Revenue Code of 1986, as added 
                by section 2161(a)).

[[Page 126 STAT. 179]]

                    (B) An analysis of the significant challenges to 
                State enactment and implementation of short-time 
                compensation programs.
                    (C) A survey of employers in all States to determine 
                the level of interest in participating in short-time 
                compensation programs.

    (b) <<NOTE: Appropriation authorization.>>  Funding.--There are 
appropriated, out of any moneys in the Treasury not otherwise 
appropriated, to the Secretary of Labor, $1,500,000 to carry out this 
section, to remain available without fiscal year limitation.

                 Subtitle E--Self-Employment Assistance

SEC. 2181. STATE ADMINISTRATION OF SELF-EMPLOYMENT ASSISTANCE 
                          PROGRAMS.

    (a) Availability for Individuals Receiving Extended Compensation.--
Title II of the Federal-State Extended Unemployment Compensation Act of 
1970 (26 U.S.C. 3304 note) is amended by inserting at the end the 
following new section:

       ``authority to conduct self-employment assistance programs

    ``Sec. 208.  (a)(1) At the option of a State, for any weeks of 
unemployment beginning after the date of enactment of this section, the 
State agency of the State may establish a self-employment assistance 
program, as described in subsection (b), to provide for the payment of 
extended compensation as self-employment assistance allowances to 
individuals who would otherwise satisfy the eligibility criteria under 
this title.
    ``(2) Subject to paragraph (3), the self-employment assistance 
allowance described in paragraph (1) shall be paid to an eligible 
individual from such individual's extended compensation account, as 
described in section 202(b), and the amount in such account shall be 
reduced accordingly.
    ``(3)(A) Subject to subparagraph (B), for purposes of self-
employment assistance programs established under this section and 
section 4001(j) of the Supplemental Appropriations Act, 2008, an 
individual shall be provided with self-employment assistance allowances 
under such programs for a total of not greater than 26 weeks (referred 
to in this section as the `combined eligibility limit').
    ``(B) For purposes of an individual who is participating in a self-
employment assistance program established under this section and has not 
reached the combined eligibility limit as of the date on which such 
individual exhausts all rights to extended compensation under this 
title, the individual shall be eligible to receive self-employment 
assistance allowances under a self-employment assistance program 
established under section 4001(j) of the Supplemental Appropriations 
Act, 2008, until such individual has reached the combined eligibility 
limit, provided that the individual otherwise satisfies the eligibility 
criteria described under title IV of such Act.
    ``(b) For the purposes of this section, the term `self-employment 
assistance program' means a program as defined under section 3306(t) of 
the Internal Revenue Code of 1986, except as follows:
            ``(1) all references to `regular unemployment compensation 
        under the State law' shall be deemed to refer instead to

[[Page 126 STAT. 180]]

        `extended compensation under title II of the Federal-State 
        Extended Unemployment Compensation Act of 1970';
            ``(2) paragraph (3)(B) shall not apply;
            ``(3) clause (i) of paragraph (3)(C) shall be deemed to 
        state as follows:
                          `` `(i) include any entrepreneurial training 
                      that the State or non-profit organizations may 
                      provide in coordination with programs of training 
                      offered by the Small Business Administration, 
                      which may include business counseling, mentorship 
                      for participants, access to small business 
                      development resources, and technical assistance; 
                      and';
            ``(4) the reference to `5 percent' in paragraph (4) shall be 
        deemed to refer instead to `1 percent'; and
            ``(5) paragraph (5) shall not apply.

    ``(c) In the case of an individual who is eligible to receive 
extended compensation under this title, such individual shall not 
receive self-employment assistance allowances under this section unless 
the State agency has a reasonable expectation that such individual will 
be entitled to at least 13 times the individual's average weekly benefit 
amount of extended compensation and emergency unemployment compensation.
    ``(d)(1) An individual who is participating in a self-employment 
assistance program established under this section may elect to 
discontinue participation in such program at any time.
    ``(2) For purposes of an individual whose participation in a self-
employment assistance program established under this section is 
terminated pursuant to subsection (a)(3) or who has discontinued 
participation in such program, if the individual continues to satisfy 
the eligibility requirements for extended compensation under this title, 
the individual shall receive extended compensation payments with respect 
to subsequent weeks of unemployment, to the extent that amounts remain 
in the account established for such individual under section 202(b).''.
    (b) Availability for Individuals Receiving Emergency Unemployment 
Compensation.--Section 4001 of the Supplemental Appropriations Act, 2008 
(Public Law 110-252; 26 U.S.C. 3304 note), as amended by sections 
2141(b) and 2142(a), is further amended by inserting at the end the 
following new subsection:
    ``(j) Authority to Conduct Self-employment Assistance Program.--
            ``(1) In general.--
                    ``(A) Establishment.--Any agreement under subsection 
                (a) may provide that the State agency of the State shall 
                establish a self-employment assistance program, as 
                described in paragraph (2), to provide for the payment 
                of emergency unemployment compensation as self-
                employment assistance allowances to individuals who 
                would otherwise satisfy the eligibility criteria 
                specified in subsection (b).
                    ``(B) Payment of allowances.--Subject to 
                subparagraph (C), the self-employment assistance 
                allowance described in subparagraph (A) shall be paid to 
                an eligible individual from such individual's emergency 
                unemployment compensation account, as described in 
                section 4002, and the amount in such account shall be 
                reduced accordingly.

[[Page 126 STAT. 181]]

                    ``(C) Limitation on self-employment assistance for 
                individuals receiving extended compensation and 
                emergency unemployment compensation.--
                          ``(i) Combined eligibility limit.--Subject to 
                      clause (ii), for purposes of self-employment 
                      assistance programs established under this 
                      subsection and section 208 of the Federal-State 
                      Extended Unemployment Compensation Act of 1970, an 
                      individual shall be provided with self-employment 
                      assistance allowances under such programs for a 
                      total of not greater than 26 weeks (referred to in 
                      this subsection as the `combined eligibility 
                      limit').
                          ``(ii) Carryover rule.--For purposes of an 
                      individual who is participating in a self-
                      employment assistance program established under 
                      this subsection and has not reached the combined 
                      eligibility limit as of the date on which such 
                      individual exhausts all rights to extended 
                      compensation under this title, the individual 
                      shall be eligible to receive self-employment 
                      assistance allowances under a self-employment 
                      assistance program established under section 208 
                      of the Federal-State Extended Unemployment 
                      Compensation Act of 1970 until such individual has 
                      reached the combined eligibility limit, provided 
                      that the individual otherwise satisfies the 
                      eligibility criteria described under title II of 
                      such Act.
            ``(2) Definition of `self-employment assistance program'.--
        For the purposes of this section, the term `self-employment 
        assistance program' means a program as defined under section 
        3306(t) of the Internal Revenue Code of 1986, except as follows:
                    ``(A) all references to `regular unemployment 
                compensation under the State law' shall be deemed to 
                refer instead to `emergency unemployment compensation 
                under title IV of the Supplemental Appropriations Act, 
                2008';
                    ``(B) paragraph (3)(B) shall not apply;
                    ``(C) clause (i) of paragraph (3)(C) shall be deemed 
                to state as follows:
                          `` `(i) include any entrepreneurial training 
                      that the State or non-profit organizations may 
                      provide in coordination with programs of training 
                      offered by the Small Business Administration, 
                      which may include business counseling, mentorship 
                      for participants, access to small business 
                      development resources, and technical assistance; 
                      and';
                    ``(D) the reference to `5 percent' in paragraph (4) 
                shall be deemed to refer instead to `1 percent'; and
                    ``(E) paragraph (5) shall not apply.
            ``(3) Availability of self-employment assistance 
        allowances.--In the case of an individual who is eligible to 
        receive emergency unemployment compensation payment under this 
        title, such individual shall not receive self-employment 
        assistance allowances under this subsection unless the State 
        agency has a reasonable expectation that such individual will be 
        entitled to at least 13 times the individual's average weekly 
        benefit amount of extended compensation and emergency 
        unemployment compensation.

[[Page 126 STAT. 182]]

            ``(4) Participant option to terminate participation in self-
        employment assistance program.--
                    ``(A) Termination.--An individual who is 
                participating in a self-employment assistance program 
                established under this subsection may elect to 
                discontinue participation in such program at any time.
                    ``(B) Continued eligibility for emergency 
                unemployment compensation.--For purposes of an 
                individual whose participation in the self-employment 
                assistance program established under this subsection is 
                terminated pursuant to paragraph (1)(C) or who has 
                discontinued participation in such program, if the 
                individual continues to satisfy the eligibility 
                requirements for emergency unemployment compensation 
                under this title, the individual shall receive emergency 
                unemployment compensation payments with respect to 
                subsequent weeks of unemployment, to the extent that 
                amounts remain in the account established for such 
                individual under section 4002(b) or to the extent that 
                such individual commences receiving the amounts 
                described in subsections (c), (d), or (e) of such 
                section, respectively.''.
SEC. 2182. <<NOTE: 26 USC 3304 note.>>  GRANTS FOR SELF-EMPLOYMENT 
                          ASSISTANCE PROGRAMS.

    (a) In General.--
            (1) Establishment or improved administration.--Subject to 
        the requirements established under subsection (b), the Secretary 
        shall award grants to States for the purposes of--
                    (A) improved administration of self-employment 
                assistance programs that have been established, prior to 
                the date of the enactment of this Act, pursuant to 
                section 3306(t) of the Internal Revenue Code of 1986 (26 
                U.S.C. 3306(t)), for individuals who are eligible to 
                receive regular unemployment compensation;
                    (B) development, implementation, and administration 
                of self-employment assistance programs that are 
                established, subsequent to the date of the enactment of 
                this Act, pursuant to section 3306(t) of the Internal 
                Revenue Code of 1986, for individuals who are eligible 
                to receive regular unemployment compensation; and
                    (C) development, implementation, and administration 
                of self-employment assistance programs that are 
                established pursuant to section 208 of the Federal-State 
                Extended Unemployment Compensation Act of 1970 or 
                section 4001(j) of the Supplemental Appropriations Act, 
                2008, for individuals who are eligible to receive 
                extended compensation or emergency unemployment 
                compensation.
            (2) Promotion and enrollment.--Subject to the requirements 
        established under subsection (b), the Secretary shall award 
        additional grants to States that submit approved applications 
        for a grant under paragraph (1) for such States to promote self-
        employment assistance programs and enroll unemployed individuals 
        in such programs.

    (b) Application and Disbursal.--
            (1) Application.--Any State seeking a grant under paragraph 
        (1) or (2) of subsection (a) shall submit an application to the 
        Secretary at such time, in such manner, and containing such 
        information as is determined appropriate by the Secretary.

[[Page 126 STAT. 183]]

        In no <<NOTE: Deadline.>> case shall the Secretary award a grant 
        under this section with respect to an application that is 
        submitted after December 31, 2013.
            (2) Notice.--Not <<NOTE: Deadline.>> later than 30 days 
        after receiving an application described in paragraph (1) from a 
        State, the Secretary shall notify the State agency as to whether 
        a grant has been approved for such State for the purposes 
        described in subsection (a).
            (3) <<NOTE: Determination.>>  Certification.--If the 
        Secretary determines that a State has met the requirements for a 
        grant under subsection (a), the Secretary shall make a 
        certification to that effect to the Secretary of the Treasury, 
        as well as a certification as to the amount of the grant payment 
        to be transferred to the State account in the Unemployment Trust 
        Fund under section 904 of the Social Security Act (42 U.S.C. 
        1104). <<NOTE: Transfer authority. Deadline.>> The Secretary of 
        the Treasury shall make the appropriate transfer to the State 
        account not later than 7 days after receiving such 
        certification.

    (c) Allotment Factors.--For <<NOTE: Determination.>> purposes of 
allotting the funds available under subsection (d) to States that have 
met the requirements for a grant under this section, the amount of the 
grant provided to each State shall be determined based upon the 
percentage of unemployed individuals in the State relative to the 
percentage of unemployed individuals in all States.

    (d) <<NOTE: Appropriation authorization.>>  Funding.--There are 
appropriated, out of moneys in the Treasury not otherwise appropriated, 
$35,000,000 for the period of fiscal year 2012 through fiscal year 2013 
for purposes of carrying out the grant program under this section,
SEC. 2183. <<NOTE: 26 USC 3304 note.>>  ASSISTANCE AND GUIDANCE IN 
                          IMPLEMENTING SELF-EMPLOYMENT ASSISTANCE 
                          PROGRAMS.

    (a) Model Language and Guidance.--For purposes of assisting States 
in establishing, improving, and administering self-employment assistance 
programs, the Secretary shall--
            (1) <<NOTE: Review.>>  develop model language that may be 
        used by States in enacting such programs, as well as 
        periodically review and revise such model language; and
            (2) provide technical assistance and guidance in 
        establishing, improving, and administering such programs.

    (b) Reporting and Evaluation.--
            (1) Reporting.--The Secretary shall establish reporting 
        requirements for States that have established self-employment 
        assistance programs, which shall include reporting on--
                    (A) the total number of individuals who received 
                unemployment compensation and--
                          (i) were referred to a self-employment 
                      assistance program;
                          (ii) participated in such program; and
                          (iii) received an allowance under such 
                      program;
                    (B) the total amount of allowances provided to 
                individuals participating in a self-employment 
                assistance program;
                    (C) the total income (as determined by survey or 
                other appropriate method) for businesses that have been 
                established by individuals participating in a self-
                employment assistance program, as well as the total 
                number of individuals employed through such businesses; 
                and

[[Page 126 STAT. 184]]

                    (D) any additional information, as determined 
                appropriate by the Secretary.
            (2) <<NOTE: Deadline.>>  Evaluation.--Not later than 5 years 
        after the date of the enactment of this Act, the Secretary shall 
        submit to Congress a report that evaluates the effectiveness of 
        self-employment assistance programs established by States, 
        including--
                    (A) an analysis of the implementation and operation 
                of self-employment assistance programs by States;
                    (B) an evaluation of the economic outcomes for 
                individuals who participated in a self-employment 
                assistance program as compared to individuals who 
                received unemployment compensation and did not 
                participate in a self-employment assistance program, 
                including a comparison as to employment status, income, 
                and duration of receipt of unemployment compensation or 
                self-employment assistance allowances; and
                    (C) an evaluation of the state of the businesses 
                started by individuals who participated in a self-
                employment assistance program, including information 
                regarding--
                          (i) the type of businesses established;
                          (ii) the sustainability of the businesses;
                          (iii) the total income collected by the 
                      businesses;
                          (iv) the total number of individuals employed 
                      through such businesses; and
                          (v) the estimated Federal and State tax 
                      revenue collected from such businesses and their 
                      employees.

    (c) Flexibility and Accountability.--The model language, guidance, 
and reporting requirements developed by the Secretary under subsections 
(a) and (b) shall--
            (1) allow sufficient flexibility for States and 
        participating individuals; and
            (2) ensure accountability and program integrity.

    (d) Consultation.--For purposes of developing the model language, 
guidance, and reporting requirements described under subsections (a) and 
(b), the Secretary shall consult with employers, labor organizations, 
State agencies, and other relevant program experts.
    (e) Entrepreneurial Training Programs.--The Secretary shall utilize 
resources available through the Department of Labor and coordinate with 
the Administrator of the Small Business Administration to ensure that 
adequate funding is reserved and made available for the provision of 
entrepreneurial training to individuals participating in self-employment 
assistance programs.
    (f) Self-employment Assistance Program.--
For <<NOTE: Definition.>> purposes of this section, the term ``self-
employment assistance program'' means a program established pursuant to 
section 3306(t) of the Internal Revenue Code of 1986 (26 U.S.C. 
3306(t)), section 208 of the Federal-State Extended Unemployment 
Compensation Act of 1970, or section 4001(j) of the Supplemental 
Appropriations Act, 2008, for individuals who are eligible to receive 
regular unemployment compensation, extended compensation, or emergency 
unemployment compensation.
SEC. 2184. <<NOTE: 26 USC 3304 note.>>  DEFINITIONS.

    In this subtitle:

[[Page 126 STAT. 185]]

            (1) Secretary.--The term ``Secretary'' means the Secretary 
        of Labor.
            (2) State; state agency.--The terms ``State'' and ``State 
        agency'' have the meanings given such terms under section 205 of 
        the Federal-State Extended Unemployment Compensation Act of 1970 
        (26 U.S.C. 3304 note).

             TITLE III--MEDICARE AND OTHER HEALTH PROVISIONS

                     Subtitle A--Medicare Extensions

SEC. 3001. EXTENSION OF MMA SECTION 508 RECLASSIFICATIONS.

    (a) In General.--Section 106(a) of division B of the Tax Relief and 
Health Care Act of 2006 (42 U.S.C. 1395 note), <<NOTE: 42 USC 1395ww 
note.>> as amended by section 117 of the Medicare, Medicaid, and SCHIP 
Extension Act of 2007 (Public Law 110-173), section 124 of the Medicare 
Improvements for Patients and Providers Act of 2008 (Public Law 110-
275), sections 3137(a) and 10317 of the Patient Protection and 
Affordable Care Act (Public Law 111-148), section 102(a) of the Medicare 
and Medicaid Extenders Act of 2010 (Public Law 111-309), and section 
302(a) of the Temporary Payroll Tax Cut Continuation Act of 2011 (Public 
Law 112-78), is amended by striking ``November 30, 2011'' and inserting 
``March 31, 2012''.

    (b) <<NOTE: 42 USC 1395ww note. Time period.>>  Special Rule.--
            (1) In general.--Subject to paragraph (2), for purposes of 
        implementation of the amendment made by subsection (a), 
        including for purposes of the implementation of paragraph (2) of 
        section 117(a) of the Medicare, Medicaid, and SCHIP Extension 
        Act of 2007 (Public Law 110-173), for the period beginning on 
        December 1, 2011, and ending on March 31, 2012, the Secretary of 
        Health and Human Services shall use the hospital wage index that 
        was promulgated by the Secretary of Health and Human Services in 
        the Federal Register on August 18, 2011 (76 Fed. Reg. 51476), 
        and any subsequent corrections.
            (2) Exception.--In determining the wage index applicable to 
        hospitals that qualify for wage index reclassification, the 
        Secretary shall, for the period described in paragraph (1), 
        include the average hourly wage data of hospitals whose 
        reclassification was extended pursuant to the amendment made by 
        subsection (a) only if including such data results in a higher 
        applicable reclassified wage index. Any revision to hospital 
        wage indexes made as a result of this paragraph shall not be 
        effected in a budget neutral manner.

    (c) <<NOTE: 42 USC 1395ww note.>>  Timeframe for Payments.--
            (1) In general.--The Secretary shall make payments required 
        under subsections (a) and (b) by not later than June 30, 2012.
            (2) October 2011 and november 2011 conforming change.--
        Section 302(c) of the Temporary Payroll Tax Cut Continuation Act 
        of 2011 (Public Law 112-78) <<NOTE: 42 USC 1395ww note.>> is 
        amended by striking ``December 31, 2012'' and inserting ``June 
        30, 2012''.

[[Page 126 STAT. 186]]

SEC. 3002. EXTENSION OF OUTPATIENT HOLD HARMLESS PAYMENTS.

    (a) In General.--Section 1833(t)(7)(D)(i) of the Social Security Act 
(42 U.S.C. 1395l(t)(7)(D)(i)), as amended by section 308 of the 
Temporary Payroll Tax Cut Continuation Act of 2011 (Public Law 112-78), 
is amended--
            (1) in subclause (II)--
                    (A) in the first sentence, by striking ``March 1, 
                2012'' and inserting ``January 1, 2013''; and
                    (B) in the second sentence, by striking ``or the 
                first two months of 2012'' and inserting ``or 2012''; 
                and
            (2) in subclause (III), in the first sentence, by striking 
        ``March 1, 2012'' and inserting ``January 1, 2013''.

    (b) Report.--Not later than July 1, 2012, the Secretary of Health 
and Human Services shall submit to the Committees on Ways and Means and 
Energy and Commerce of the House of Representatives and the Committee on 
Finance of the Senate a report including recommendations for which types 
of hospitals should continue to receive hold harmless payments described 
in subclauses (II) and (III) of section 1833(t)(7)(D)(i) of the Social 
Security Act (42 U.S.C. 1395l(t)(7)(D)(i)) in order to maintain adequate 
beneficiary access to outpatient services. In conducting such report, 
the Secretary should examine why some similarly situated hospitals do 
not receive such hold harmless payments and are able to rely only on the 
prospective payment system for hospital outpatient department services 
under section 1833(t) of the Social Security Act (42 U.S.C. 1395l(t)).
SEC. 3003. PHYSICIAN PAYMENT UPDATE.

    (a) In General.--Section 1848(d)(13) of the Social Security Act (42 
U.S.C. 1395w-4(d)(13)), as added by section 301 of the Temporary Payroll 
Tax Cut Continuation Act of 2011 (Public Law 112-78), is amended--
            (1) in the heading, by striking ``first two months of 2012'' 
        and inserting ``2012'';
            (2) in subparagraph (A), by striking ``the period beginning 
        on January 1, 2012, and ending on February 29, 2012'' and 
        inserting ``2012'';
            (3) in the heading of subparagraph (B), by striking 
        ``remaining portion of 2012'' and inserting ``2013''; and
            (4) in subparagraph (B), by striking ``for the period 
        beginning on March 1, 2012, and ending on December 31, 2012, and 
        for 2013'' and inserting ``for 2013''.

    (b) Mandated Studies on Physician Payment Reform.--
            (1) Study by secretary on options for bundled or episode-
        based payment.--
                    (A) In general.--The Secretary of Health and Human 
                Services shall conduct a study that examines options for 
                bundled or episode-based payments, to cover physicians' 
                services currently paid under the physician fee schedule 
                under section 1848 of the Social Security Act (42 U.S.C. 
                1395w-4), for one or more prevalent chronic conditions 
                (such as cancer, diabetes, and congestive heart failure) 
                or episodes of care for one or more major procedures 
                (such as medical device 
                implantation). <<NOTE: Consultation.>> In conducting the 
                study, the Secretary shall consult with medical 
                professional societies and other relevant stakeholders. 
                The study shall

[[Page 126 STAT. 187]]

                include an examination of related private payer payment 
                initiatives.
                    (B) Report.--Not later than January 1, 2013, the 
                Secretary shall submit to the Committees on Ways and 
                Means and Energy and Commerce of the House of 
                Representatives and the Committee on Finance of the 
                Senate a report on the study conducted under this 
                paragraph. The Secretary shall include in the report 
                recommendations on suitable alternative payment options 
                for services paid under such fee schedule and on 
                associated implementation requirements (such as 
                timelines, operational issues, and interactions with 
                other payment reform initiatives).
            (2) GAO study of private payer initiatives.--
                    (A) In general.--The Comptroller General of the 
                United States shall conduct a study that examines 
                initiatives of private entities offering or 
                administering health insurance coverage, group health 
                plans, or other private health benefit plans to base or 
                adjust physician payment rates under such coverage or 
                plans for performance on quality and efficiency, as well 
                as demonstration of care delivery improvement activities 
                (such as adherence to evidence-based guidelines and 
                patient-shared decision making 
                programs). <<NOTE: Consultation.>> In conducting such 
                study, the Comptroller General shall consult, to the 
                extent appropriate, with medical professional societies 
                and other relevant stakeholders.
                    (B) Report.--Not later than January 1, 2013, the 
                Comptroller General shall submit to the Committees on 
                Ways and Means and Energy and Commerce of the House of 
                Representatives and the Committee on Finance of the 
                Senate a report on the study conducted under this 
                paragraph. Such report shall include an assessment of 
                the applicability of the payer initiatives described in 
                subparagraph (A) to the Medicare program and 
                recommendations on modifications to existing Medicare 
                performance-based initiatives.
SEC. 3004. WORK GEOGRAPHIC ADJUSTMENT.

    (a) In General.--Section 1848(e)(1)(E) of the Social Security Act 
(42 U.S.C. 1395w-4(e)(1)(E)), as amended by section 303 of the Temporary 
Payroll Tax Cut Continuation Act of 2011 (Public Law 112-78), is amended 
by striking ``before March 1, 2012'' and inserting ``before January 1, 
2013''.
    (b) Report.--Not later than June 15, 2013, the Medicare Payment 
Advisory Commission shall submit to the Committees on Ways and Means and 
Energy and Commerce of the House of Representatives and the Committee on 
Finance of the Senate a report that assesses whether any adjustment 
under section 1848 of the Social Security Act (42 U.S.C. 1395w-4) to 
distinguish the difference in work effort by geographic area is 
appropriate and, if so, what that level should be and where it should be 
applied. The report shall also assess the impact of the work geographic 
adjustment under such section, including the extent to which the floor 
on such adjustment impacts access to care.
SEC. 3005. PAYMENT FOR OUTPATIENT THERAPY SERVICES.

    (a) Application of Additional Requirements.--Section 1833(g)(5) of 
the Social Security Act (42 U.S.C. 1395l(g)(5)), as

[[Page 126 STAT. 188]]

amended by section 304 of the Temporary Payroll Tax Cut Continuation Act 
of 2011 (Public Law 112-78), is amended--
            (1) by inserting ``(A)'' after ``(5)'';
            (2) in the first sentence, by striking ``February 29, 2012'' 
        and inserting ``December 31, 2012'';
            (3) in the first sentence, by inserting ``and if the 
        requirement of subparagraph (B) is met'' after ``medically 
        necessary'';
            (4) in the second sentence, by inserting ``made in 
        accordance with such requirement'' after ``receipt of the 
        request''; and
            (5) by adding at the end the following new subparagraphs:

    ``(B) In the case of outpatient therapy services for which an 
exception is requested under the first sentence of subparagraph (A), the 
claim for such services shall contain an appropriate modifier (such as 
the KX modifier used as of the date of the enactment of this 
subparagraph) indicating that such services are medically necessary as 
justified by appropriate documentation in the medical record involved.
    ``(C)(i) <<NOTE: Applicability. Time period. Review.>>  In applying 
this paragraph with respect to a request for an exception with respect 
to expenses that would be incurred for outpatient therapy services 
(including services described in subsection (a)(8)(B)) that would exceed 
the threshold described in clause (ii) for a year, the request for such 
an exception, for services furnished on or after October 1, 2012, shall 
be subject to a manual medical review process that is similar to the 
manual medical review process used for certain exceptions under this 
paragraph in 2006.

    ``(ii) The threshold under this clause for a year is $3,700. Such 
threshold shall be applied separately--
            ``(I) for physical therapy services and speech-language 
        pathology services; and
            ``(II) for occupational therapy services.''.

    (b) Temporary Application of Therapy Cap to Therapy Furnished as 
Part of Hospital Outpatient Services.--Section 1833(g) of such Act (42 
U.S.C. 1395l(g)) is amended--
            (1) in each of paragraphs (1) and (3), by striking ``but not 
        described in section 1833(a)(8)(B)'' and inserting ``but (except 
        as provided in paragraph (6)) not described in subsection 
        (a)(8)(B)''; and
            (2) by adding at the end the following new paragraph:

    ``(6) <<NOTE: Applicability. Time period.>>  In applying paragraphs 
(1) and (3) to services furnished during the period beginning not later 
than October 1, 2012, and ending on December 31, 2012, the exclusion of 
services described in subsection (a)(8)(B) from the uniform dollar 
limitation specified in paragraph (2) shall not apply to such services 
furnished during 2012.''.

    (c) Requirement for Inclusion on Claims of NPI of Physician Who 
Reviews Therapy Plan.--Section 1842(t) of such Act (42 U.S.C. 1395u(t)) 
is amended--
            (1) by inserting ``(1)'' after ``(t)''; and
            (2) by adding at the end the following new paragraph:

    ``(2) <<NOTE: Time period.>>  Each request for payment, or bill 
submitted, for therapy services described in paragraph (1) or (3) of 
section 1833(g), including services described in section 1833(a)(8)(B), 
furnished on or after October 1, 2012, for which payment may be made 
under this part shall include the national provider identifier of the 
physician who periodically reviews the plan for such services under 
section 1861(p)(2).''.

[[Page 126 STAT. 189]]

    (d) <<NOTE: 42 USC 1395l note.>>  Implementation.--The Secretary of 
Health and Human Services shall implement such claims processing edits 
and issue such guidance as may be necessary to implement the amendments 
made by this section in a timely manner. Notwithstanding any other 
provision of law, the Secretary may implement the amendments made by 
this section by program instruction. Of the amount of funds made 
available to the Secretary for fiscal year 2012 for program management 
for the Centers for Medicare & Medicaid Services, not to exceed 
$9,375,000 shall be available for such fiscal year and the first 3 
months of fiscal year 2013 to carry out section 1833(g)(5)(C) of the 
Social Security Act (relating to manual medical review), as added by 
subsection (a).

    (e) <<NOTE: 42 USC 1395l note.>>  Effective Date.--The requirement 
of subparagraph (B) of section 1833(g)(5) of the Social Security Act (42 
U.S.C. 1395l(g)(5)), as added by subsection (a), shall apply to services 
furnished on or after March 1, 2012.

    (f) MedPAC Report on Improved Medicare Therapy Benefits.--
Not <<NOTE: Deadline.>> later than June 15, 2013, the Medicare Payment 
Advisory Commission shall submit to the Committees on Energy and 
Commerce and Ways and Means of the House of Representatives and to the 
Committee on Finance of the Senate a report making recommendations on 
how to improve the outpatient therapy benefit under part B of title 
XVIII of the Social Security Act. The report shall include 
recommendations on how to reform the payment system for such outpatient 
therapy services under such part so that the benefit is better designed 
to reflect individual acuity, condition, and therapy needs of the 
patient. Such report shall include an examination of private sector 
initiatives relating to outpatient therapy benefits.

    (g) <<NOTE: 42 USC 1395l note. Effective date.>>  Collection of 
Additional Data.--
            (1) Strategy.--The Secretary of Health and Human Services 
        shall implement, beginning on January 1, 2013, a claims-based 
        data collection strategy that is designed to assist in reforming 
        the Medicare payment system for outpatient therapy services 
        subject to the limitations of section 1833(g) of the Social 
        Security Act (42 U.S.C. 1395l(g)). Such strategy shall be 
        designed to provide for the collection of data on patient 
        function during the course of therapy services in order to 
        better understand patient condition and outcomes.
            (2) Consultation.--In proposing and implementing such 
        strategy, the Secretary shall consult with relevant 
        stakeholders.

    (h) GAO Report on Manual Medical Review Process Implementation.--Not 
later than May 1, 2013, the Comptroller General of the United States 
shall submit to the Committees on Energy and Commerce and Ways and Means 
of the House of Representatives and to the Committee on Finance of the 
Senate a report on the implementation of the manual medical review 
process referred to in section 1833(g)(5)(C) of the Social Security Act, 
as added by subsection (a). Such report shall include aggregate data on 
the number of individuals and claims subject to such process, the number 
of reviews conducted under such process, and the outcome of such 
reviews.
SEC. 3006. PAYMENT FOR TECHNICAL COMPONENT OF CERTAIN PHYSICIAN 
                          PATHOLOGY SERVICES.

    Section 542(c) of the Medicare, Medicaid, and SCHIP Benefits 
Improvement and Protection Act of 2000 (as enacted into law by

[[Page 126 STAT. 190]]

section 1(a)(6) of Public Law 106-554), as amended by section 732 of the 
Medicare Prescription Drug, Improvement, and Modernization Act of 2003 
(42 U.S.C. 1395w-4 note), section 104 of division B of the Tax Relief 
and Health Care Act of 2006 (42 U.S.C. 1395w-4 note), section 104 of the 
Medicare, Medicaid, and SCHIP Extension Act of 2007 (Public Law 110-
173), section 136 of the Medicare Improvements for Patients and 
Providers Act of 2008 (Public Law 110-275), section 3104 of the Patient 
Protection and Affordable Care Act (Public Law 111-148), section 105 of 
the Medicare and Medicaid Extenders Act of 2010 (Public Law 111-309), 
and section 305 of the Temporary Payroll Tax Cut Continuation Act of 
2011 (Public Law 112-78), <<NOTE: 42 USC 1395w-4 note.>> is amended by 
striking ``and the first two months of 2012'' and inserting ``and the 
first six months of 2012''.
SEC. 3007. AMBULANCE ADD-ON PAYMENTS.

    (a) Ground Ambulance.--Section 1834(l)(13)(A) of the Social Security 
Act (42 U.S.C. 1395m(l)(13)(A)), as amended by section 306(a) of the 
Temporary Payroll Tax Cut Continuation Act of 2011 (Public Law 112-78), 
is amended--
            (1) in the matter preceding clause (i), by striking ``March 
        1, 2012'' and inserting ``January 1, 2013''; and
            (2) in each of clauses (i) and (ii), by striking ``March 1, 
        2012'' and inserting ``January 1, 2013'' each place it appears.

    (b) Air Ambulance.--Section 146(b)(1) of the Medicare Improvements 
for Patients and Providers Act of 2008 (Public Law 110-275), as amended 
by sections 3105(b) and 10311(b) of the Patient Protection and 
Affordable Care Act (Public Law 111-148), section 106(b) of the Medicare 
and Medicaid Extenders Act of 2010 (Public Law 111-309) and section 
306(b) of the Temporary Payroll Tax Cut Continuation Act of 2011 (Public 
Law 112-78), <<NOTE: 42 USC 1395m note.>> is amended by striking 
``February 29, 2012'' and inserting ``December 31, 2012''.

    (c) Super Rural Ambulance.--Section 1834(l)(12)(A) of the Social 
Security Act (42 U.S.C. 1395m(l)(12)(A)), as amended by section 306(c) 
of Temporary Payroll Tax Cut Continuation Act of 2011 (Public Law 112-
78), is amended in the first sentence by striking ``March 1, 2012'' and 
inserting ``January 1, 2013''.
    (d) GAO Report Update.--Not later than October 1, 2012, the 
Comptroller General of the United States shall update the GAO report 
GAO-07-383 (relating to Ambulance Providers: Costs and Expected Medicare 
Margins Vary Greatly) to reflect current costs for ambulance providers.
    (e) MedPAC Report.--The <<NOTE: Study.>> Medicare Payment Advisory 
Commission shall conduct a study of--
            (1) the appropriateness of the add-on payments for ambulance 
        providers under paragraphs (12)(A) and (13)(A) of section 
        1834(l) of the Social Security Act (42 U.S.C. 1395m(l)) and the 
        treatment of air ambulance providers under section 146(b)(1) of 
        the Medicare Improvements for Patients and Providers Act of 2008 
        (Public Law 110-275);
            (2) the effect these add-on payments and such treatment have 
        on the Medicare margins of ambulance providers; and
            (3) whether there is a need to reform the Medicare ambulance 
        fee schedule under such section and, if so, what should such 
        reforms be, including whether the add-on payments should be 
        included in the base rate.

[[Page 126 STAT. 191]]

Not later than June 15, 2013, the Commission shall submit to the 
Committees on Ways and Means and Energy and Commerce of the House of 
Representatives and the Committee on Finance of the Senate a report on 
such study and shall include in the report such recommendations as the 
Commission deems appropriate.

                   Subtitle B--Other Health Provisions

SEC. 3101. QUALIFYING INDIVIDUAL PROGRAM.

    (a) Extension.--Section 1902(a)(10)(E)(iv) of the Social Security 
Act (42 U.S.C. 1396a(a)(10)(E)(iv)), as amended by section 310(a) of the 
Temporary Payroll Tax Cut Continuation Act of 2011 (Public Law 112-78), 
is amended by striking ``February'' and inserting ``December''.
    (b) Extending Total Amount Available for Allocation.--Section 
1933(g) of such Act (42 U.S.C. 1396u-3(g)), as amended by section 310(b) 
of the Temporary Payroll Tax Cut Continuation Act of 2011 (Public Law 
112-78), is amended--
            (1) in paragraph (2)--
                    (A) in subparagraph (P), by striking ``and'' after 
                the semicolon;
                    (B) in subparagraph (Q), by striking ``February 29, 
                2012, the total allocation amount is $150,000,000.'' and 
                inserting ``September 30, 2012, the total allocation 
                amount is $450,000,000; and''; and
                    (C) by adding at the end the following new 
                subparagraph:
                    ``(R) <<NOTE: Time period.>>  for the period that 
                begins on October 1, 2012, and ends on December 31, 
                2012, the total allocation amount is $280,000,000.''; 
                and
            (2) in paragraph (3), in the matter preceding subparagraph 
        (A), by striking ``or (P)'' and inserting ``(P), or (R)''.
SEC. 3102. TRANSITIONAL MEDICAL ASSISTANCE.

    Sections 1902(e)(1)(B) and 1925(f) of the Social Security Act (42 
U.S.C. 1396a(e)(1)(B), 1396r-6(f)), as amended by section 311 of the 
Temporary Payroll Tax Cut Continuation Act of 2011 (Public Law 112-78), 
are each amended by striking ``February 29'' and inserting ``December 
31''.

                       Subtitle C--Health Offsets

SEC. 3201. REDUCTION OF BAD DEBT TREATED AS AN ALLOWABLE COST.

    (a) Hospitals.--Section 1861(v)(1)(T) of the Social Security Act (42 
U.S.C. 1395x(v)(1)(T)) is amended--
            (1) in clause (iii), by striking ``and'' at the end;
            (2) in clause (iv)--
                    (A) by striking ``a subsequent fiscal year'' and 
                inserting ``fiscal years 2001 through 2012''; and
                    (B) by striking the period at the end and inserting 
                ``, and''; and
            (3) by adding at the end the following:

[[Page 126 STAT. 192]]

            ``(v) for cost reporting periods beginning during fiscal 
        year 2013 or a subsequent fiscal year, by 35 percent of such 
        amount otherwise allowable.''.

    (b) <<NOTE: Time periods.>>  Skilled Nursing Facilities.--Section 
1861(v)(1)(V) of such Act (42 U.S.C. 1395x(v)(1)(V)) is amended--
            (1) in the matter preceding clause (i), by striking ``with 
        respect to cost reporting periods beginning on or after October 
        1, 2005'' and inserting ``and (beginning with respect to cost 
        reporting periods beginning during fiscal year 2013) for covered 
        skilled nursing services described in section 1888(e)(2)(A) 
        furnished by hospital providers of extended care services (as 
        described in section 1883)'';
            (2) in clause (i), by striking ``reduced by'' and all that 
        follows through ``allowable; and'' and inserting the following: 
        ``reduced by--
            ``(I) for cost reporting periods beginning on or after 
        October 1, 2005, but before fiscal year 2013, 30 percent of such 
        amount otherwise allowable; and
            ``(II) for cost reporting periods beginning during fiscal 
        year 2013 or a subsequent fiscal year, by 35 percent of such 
        amount otherwise allowable.''; and
            (3) in clause (ii), by striking ``such section shall not be 
        reduced.'' and inserting ``such section--
            ``(I) for cost reporting periods beginning on or after 
        October 1, 2005, but before fiscal year 2013, shall not be 
        reduced;
            ``(II) for cost reporting periods beginning during fiscal 
        year 2013, shall be reduced by 12 percent of such amount 
        otherwise allowable;
            ``(III) for cost reporting periods beginning during fiscal 
        year 2014, shall be reduced by 24 percent of such amount 
        otherwise allowable; and
            ``(IV) for cost reporting periods beginning during a 
        subsequent fiscal year, shall be reduced by 35 percent of such 
        amount otherwise allowable.''.

    (c) Certain Other Providers.--Section 1861(v)(1) of such Act (42 
U.S.C. 1395x(v)(1)) is amended by adding at the end the following new 
subparagraph:
    ``(W)(i) <<NOTE: Time periods.>>  In determining such reasonable 
costs for providers described in clause (ii), the amount of bad debts 
otherwise treated as allowable costs which are attributable to 
deductibles and coinsurance amounts under this title shall be reduced--
            ``(I) for cost reporting periods beginning during fiscal 
        year 2013, by 12 percent of such amount otherwise allowable;
            ``(II) for cost reporting periods beginning during fiscal 
        year 2014, by 24 percent of such amount otherwise allowable; and
            ``(III) for cost reporting periods beginning during a 
        subsequent fiscal year, by 35 percent of such amount otherwise 
        allowable.

    ``(ii) A provider described in this clause is a provider of services 
not described in subparagraph (T) or (V), a supplier, or any other type 
of entity that receives payment for bad debts under the authority under 
subparagraph (A).''.
    (d) <<NOTE: Time period.>>  Conforming Amendment for Hospital 
Services.--Section 4008(c) of the Omnibus Budget Reconciliation Act 
of <<NOTE: 42 USC 1395f note.>> 1987 (42 U.S.C. 1395 note), as amended 
by section 8402 of the Technical and Miscellaneous Revenue Act of 1988 
and section 6023 of the Omnibus Budget Reconciliation Act of 1989, is 
amended by adding at the

[[Page 126 STAT. 193]]

end the following new sentence: ``Effective for cost reporting periods 
beginning on or after October 1, 2012, the provisions of the previous 
two sentences shall not apply.''.
SEC. 3202. REBASE MEDICARE CLINICAL LABORATORY PAYMENT RATES.

    Section 1833(h)(2)(A) of the Social Security Act (42 U.S.C. 
1395l(h)(2)(A)) is amended--
            (1) in clause (i), by striking ``paragraph (4)'' and 
        inserting ``clause (v), subparagraph (B), and paragraph (4)'';
            (2) by moving clause (iv), subclauses (I) and (II) of such 
        clause, and the flush matter at the end of such clause 6 ems to 
        the left; and
            (3) by adding at the end the following new clause:

    ``(v) <<NOTE: Reduction.>>  The Secretary shall reduce by 2 percent 
the fee schedules otherwise determined under clause (i) for 2013, and 
such reduced fee schedules shall serve as the base for 2014 and 
subsequent years.''.
SEC. 3203. REBASING STATE DSH ALLOTMENTS FOR FISCAL YEAR 2021.

    Section 1923(f) of the Social Security Act (42 U.S.C. 1396r-4(f)) is 
amended--
            (1) by redesignating paragraph (8) as paragraph (9);
            (2) in paragraph (3)(A) by striking ``paragraphs (6) and 
        (7)'' and inserting ``paragraphs (6), (7), and (8)''; and
            (3) by inserting after paragraph (7) the following new 
        paragraph:
            ``(8) Rebasing of state dsh allotments for fiscal year 
        2021.--With <<NOTE: Applicability.>> respect to fiscal year 
        2021, for purposes of applying paragraph (3)(A) to determine the 
        DSH allotment for a State, the amount of the DSH allotment for 
        the State under paragraph (3) for fiscal year 2020 shall be 
        equal to the DSH allotment as reduced under paragraph (7).''.
SEC. 3204. TECHNICAL CORRECTION TO THE DISASTER RECOVERY FMAP 
                          PROVISION.

    (a) In General.--Section 1905(aa) of the Social Security Act (42 
U.S.C. 1396d(aa)) is amended--
            (1) in paragraph (1)--
                    (A) in subparagraph (A), by striking ``the Federal 
                medical assistance percentage determined for the fiscal 
                year'' and all that follows through the period and 
                inserting ``the State's regular FMAP shall be increased 
                by 50 percent of the number of percentage points by 
                which the State's regular FMAP for such fiscal year is 
                less than the Federal medical assistance percentage 
                determined for the State for the preceding fiscal year 
                after the application of only subsection (a) of section 
                5001 of Public Law 111-5 (if applicable to the preceding 
                fiscal year) and without regard to this subsection, 
                subsections (y) and (z), and subsections (b) and (c) of 
                section 5001 of Public Law 111-5.''; and
                    (B) in subparagraph (B), by striking ``Federal 
                medical assistance percentage determined for the 
                preceding fiscal year'' and all that follows through the 
                period and inserting ``State's regular FMAP for such 
                fiscal year shall be increased by 25 percent of the 
                number of percentage points by which the State's regular 
                FMAP for such fiscal year

[[Page 126 STAT. 194]]

                is less than the Federal medical assistance percentage 
                received by the State during the preceding fiscal 
                year.'';
            (2) in paragraph (2)--
                    (A) in subparagraph (A)--
                          (i) by striking ``Federal medical assistance 
                      percentage determined for the State for the fiscal 
                      year'' and all that follows through ``Act,'' and 
                      inserting ``State's regular FMAP for the fiscal 
                      year''; and
                          (ii) by striking ``subsection (y)'' and 
                      inserting ``subsections (y) and (z)''; and
                    (B) in subparagraph (B), by striking ``Federal 
                medical assistance percentage determined for the State 
                for the fiscal year'' and all that follows through 
                ``Act,'' and inserting ``State's regular FMAP for the 
                fiscal year'';
            (3) by redesignating paragraph (3) as paragraph (4); and
            (4) by inserting after paragraph (2) the following:

    ``(3) <<NOTE: Definition.>>  In this subsection, the term `regular 
FMAP' means, for each fiscal year for which this subsection applies to a 
State, the Federal medical assistance percentage that would otherwise 
apply to the State for the fiscal year, as determined under subsection 
(b) and without regard to this subsection, subsections (y) and (z), and 
section 10202 of the Patient Protection and Affordable Care Act.''.

    (b) <<NOTE: 42 USC 1396d note.>>  Effective Date.--The amendments 
made by subsection (a) shall take effect on October 1, 2013.
SEC. 3205. PREVENTION AND PUBLIC HEALTH FUND.

    Section 4002(b) of the Patient Protection and Affordable Care Act 
(42 U.S.C. 300u-11(b)) is amended by striking paragraphs (2) through (6) 
and inserting the following:
            ``(2) for each of fiscal years 2012 through 2017, 
        $1,000,000,000;
            ``(3) for each of fiscal years 2018 and 2019, 
        $1,250,000,000;
            ``(4) for each of fiscal years 2020 and 2021, 
        $1,500,000,000; and
            ``(5) for fiscal year 2022, and each fiscal year thereafter, 
        $2,000,000,000.''.

 TITLE IV--TANF <<NOTE: Welfare Integrity and Data Improvement Act. 42 
USC 1305 note.>> EXTENSION
SEC. 4001. SHORT TITLE.

    This title may be cited as the ``Welfare Integrity and Data 
Improvement Act''.
SEC. 4002. EXTENSION OF PROGRAM.

    (a) Family Assistance Grants.--Section 403(a)(1) of the Social 
Security Act (42 U.S.C. 603(a)(1)) is amended--
            (1) in subparagraph (A), by striking ``each of fiscal years 
        1996'' and all that follows through ``2003'' and inserting 
        ``fiscal year 2012'';
            (2) in subparagraph (B)--
                    (A) by inserting ``(as in effect just before the 
                enactment of the Welfare Integrity and Data Improvement 
                Act)'' after ``this paragraph'' the first place it 
                appears; and
                    (B) by inserting ``(as so in effect)'' after ``this 
                paragraph'' the second place it appears; and

[[Page 126 STAT. 195]]

            (3) in subparagraph (C), by striking ``2003'' and inserting 
        ``2012''.

    (b) Healthy Marriage Promotion and Responsible Fatherhood Grants.--
Section 403(a)(2)(D) of such Act (42 U.S.C. 603(a)(2)(D)) is amended by 
striking ``2011'' each place it appears and inserting ``2012''.
    (c) Maintenance of Effort Requirement.--Section 409(a)(7) of such 
Act (42 U.S.C. 609(a)(7)) is amended--
            (1) in subparagraph (A), by striking ``fiscal year'' and all 
        that follows through ``2013'' and inserting ``a fiscal year''; 
        and
            (2) in subparagraph (B)(ii)--
                    (A) by striking ``for fiscal years 1997 through 
                2012,''; and
                    (B) by striking ``407(a) for the fiscal year,'' and 
                inserting ``407(a),''.

    (d) Tribal Grants.--Section 412(a) of such Act (42 U.S.C. 612(a)) is 
amended in each of paragraphs (1)(A) and (2)(A) by striking ``each of 
fiscal years 1997'' and all that follows through ``2003'' and inserting 
``fiscal year 2012''.
    (e) Studies and Demonstrations.--Section 413(h)(1) of such Act (42 
U.S.C. 613(h)(1)) is amended by striking ``each of fiscal years 1997 
through 2002'' and inserting ``fiscal year 2012''.
    (f) Census Bureau Study.--Section 414(b) of such Act (42 U.S.C. 
614(b)) is amended by striking ``each of fiscal years 1996'' and all 
that follows through ``2003'' and inserting ``fiscal year 2012''.
    (g) Child Care Entitlement.--Section 418(a)(3) of such Act (42 
U.S.C. 618(a)(3)) is amended by striking ``appropriated'' and all that 
follows and inserting ``appropriated $2,917,000,000 for fiscal year 
2012.''.
    (h) Grants to Territories.--Section 1108(b)(2) of such Act (42 
U.S.C. 1308(b)(2)) is amended by striking ``fiscal years 1997 through 
2003'' and inserting ``fiscal year 2012''.
    (i) Prevention of Duplicate Appropriations for Fiscal Year 2012.--
Expenditures made pursuant to the Short-Term TANF Extension Act (Public 
Law 112-35) and the Temporary Payroll Tax Cut Continuation Act of 2011 
(Public Law 112-78) for fiscal year 2012 shall be charged to the 
applicable appropriation or authorization provided by the amendments 
made by this section for such fiscal year.
    (j) <<NOTE: 42 USC 603 note.>>  Effective Date.--This section and 
the amendments made by this section shall take effect on the date of the 
enactment of this Act.
SEC. 4003. DATA EXCHANGE STANDARDIZATION FOR IMPROVED 
                          INTEROPERABILITY.

    (a) In General.--Section 411 of the Social Security Act (42 U.S.C. 
611) is amended by adding at the end the following:
    ``(d) Data Exchange Standardization for Improved Interoperability.--
            ``(1) Data exchange standards.--
                    ``(A) Designation.--
                The <<NOTE: Establishment. Regulations.>> Secretary, in 
                consultation with an interagency work group which shall 
                be established by the Office of Management and Budget, 
                and considering State and tribal perspectives, shall, by 
                rule, designate a data exchange standard for any 
                category of information required to be reported under 
                this part.

[[Page 126 STAT. 196]]

                    ``(B) Data exchange standards must be nonproprietary 
                and interoperable.--The data exchange standard 
                designated under subparagraph (A) shall, to the extent 
                practicable, be nonproprietary and interoperable.
                    ``(C) Other requirements.--In designating data 
                exchange standards under this section, the Secretary 
                shall, to the extent practicable, incorporate--
                          ``(i) interoperable standards developed and 
                      maintained by an international voluntary consensus 
                      standards body, as defined by the Office of 
                      Management and Budget, such as the International 
                      Organization for Standardization;
                          ``(ii) interoperable standards developed and 
                      maintained by intergovernmental partnerships, such 
                      as the National Information Exchange Model; and
                          ``(iii) interoperable standards developed and 
                      maintained by Federal entities with authority over 
                      contracting and financial assistance, such as the 
                      Federal Acquisition Regulatory Council.
            ``(2) Data exchange standards for reporting.--
                    ``(A) <<NOTE: Establishment. Regulations.>>  
                Designation.--The Secretary, in consultation with an 
                interagency work group established by the Office of 
                Management and Budget, and considering State and tribal 
                perspectives, shall, by rule, designate data exchange 
                standards to govern the data reporting required under 
                this part.
                    ``(B) Requirements.--The data exchange standards 
                required by subparagraph (A) shall, to the extent 
                practicable--
                          ``(i) incorporate a widely-accepted, 
                      nonproprietary, searchable, computer-readable 
                      format;
                          ``(ii) be consistent with and implement 
                      applicable accounting principles; and
                          ``(iii) be capable of being continually 
                      upgraded as necessary.
                    ``(C) Incorporation of nonproprietary standards.--In 
                designating reporting standards under this paragraph, 
                the Secretary shall, to the extent practicable, 
                incorporate existing nonproprietary standards, such as 
                the eXtensible Markup Language.''.

    (b) <<NOTE: 42 USC 611 note.>>  Effective Dates.--
            (1) Data exchange standards.--
        The <<NOTE: Regulations. Deadlines.>> Secretary of Health and 
        Human Services shall issue a proposed rule under section 
        411(d)(1) of the Social Security Act within 12 months after the 
        date of the enactment of this section, and shall issue a final 
        rule under such section 411(d)(1), after public comment, within 
        24 months after such date of enactment.
            (2) Data reporting standards.--The reporting standards 
        required under section 411(d)(2) of such Act shall become 
        effective with respect to reports required in the first 
        reporting period, after the effective date of the final rule 
        referred to in paragraph (1) of this subsection, for which the 
        authority for data collection and reporting is established or 
        renewed under the Paperwork Reduction Act.

[[Page 126 STAT. 197]]

SEC. 4004. SPENDING POLICIES FOR ASSISTANCE UNDER STATE TANF 
                          PROGRAMS.

    (a) State Requirement.--Section 408(a) of the Social Security Act 
(42 U.S.C. 608(a)) is amended by adding at the end the following:
            ``(12) State requirement to prevent unauthorized spending of 
        benefits.--
                    ``(A) In general.--A State to which a grant is made 
                under section 403 shall maintain policies and practices 
                as necessary to prevent assistance provided under the 
                State program funded under this part from being used in 
                any electronic benefit transfer transaction in--
                          ``(i) any liquor store;
                          ``(ii) any casino, gambling casino, or gaming 
                      establishment; or
                          ``(iii) any retail establishment which 
                      provides adult-oriented entertainment in which 
                      performers disrobe or perform in an unclothed 
                      state for entertainment.
                    ``(B) Definitions.--For purposes of subparagraph 
                (A)--
                          ``(i) Liquor store.--The term `liquor store' 
                      means any retail establishment which sells 
                      exclusively or primarily intoxicating liquor. Such 
                      term does not include a grocery store which sells 
                      both intoxicating liquor and groceries including 
                      staple foods (within the meaning of section 3(r) 
                      of the Food and Nutrition Act of 2008 (7 U.S.C. 
                      2012(r))).
                          ``(ii) Casino, gambling casino, or gaming 
                      establishment.--The terms `casino', `gambling 
                      casino', and `gaming establishment' do not 
                      include--
                                    ``(I) a grocery store which sells 
                                groceries including such staple foods 
                                and which also offers, or is located 
                                within the same building or complex as, 
                                casino, gambling, or gaming activities; 
                                or
                                    ``(II) any other establishment that 
                                offers casino, gambling, or gaming 
                                activities incidental to the principal 
                                purpose of the business.
                          ``(iii) Electronic benefit transfer 
                      transaction.--The term `electronic benefit 
                      transfer transaction' means the use of a credit or 
                      debit card service, automated teller machine, 
                      point-of-sale terminal, or access to an online 
                      system for the withdrawal of funds or the 
                      processing of a payment for merchandise or a 
                      service.''.

    (b) Penalty.--Section 409(a) of such Act (42 U.S.C. 609(a)) is 
amended by adding at the end the following:
            ``(16) Penalty for failure to enforce spending policies.--
                    ``(A) In general.--If, within 2 <<NOTE: Time 
                period. Determination. Reduction.>> years after the date 
                of the enactment of this paragraph, any State has not 
                reported to the Secretary on such State's implementation 
                of the policies and practices required by section 
                408(a)(12), or the Secretary determines, based on the 
                information provided in State reports, that any State 
                has not implemented and maintained such policies and 
                practices, the Secretary shall reduce, by an amount 
                equal to 5 percent of the

[[Page 126 STAT. 198]]

                State family assistance grant, the grant payable to such 
                State under section 403(a)(1) for--
                          ``(i) the fiscal year immediately succeeding 
                      the year in which such 2-year period ends; and
                          ``(ii) each succeeding fiscal year in which 
                      the State does not demonstrate that such State has 
                      implemented and maintained such policies and 
                      practices.
                    ``(B) Reduction of applicable penalty.--The 
                Secretary may reduce the amount of the reduction 
                required under subparagraph (A) based on the degree of 
                noncompliance of the State.
                    ``(C) State not responsible for individual 
                violations.--Fraudulent activity by any individual in an 
                attempt to circumvent the policies and practices 
                required by section 408(a)(12) shall not trigger a State 
                penalty under subparagraph (A).''.

    (c) Additional State Plan Requirements.--Section 402(a)(1)(A) of 
such Act (42 U.S.C. 602(a)(1)(A)) is amended by adding at the end the 
following:
                          ``(vii) Implement policies and procedures as 
                      necessary to prevent access to assistance provided 
                      under the State program funded under this part 
                      through any electronic fund transaction in an 
                      automated teller machine or point-of-sale device 
                      located in a place described in section 
                      408(a)(12), including a plan to ensure that 
                      recipients of the assistance have adequate access 
                      to their cash assistance.
                          ``(viii) Ensure that recipients of assistance 
                      provided under the State program funded under this 
                      part have access to using or withdrawing 
                      assistance with minimal fees or charges, including 
                      an opportunity to access assistance with no fee or 
                      charges, and are provided information on 
                      applicable fees and surcharges that apply to 
                      electronic fund transactions involving the 
                      assistance, and that such information is made 
                      publicly available.''.

    (d) Conforming Amendment.--Section 409(c)(4) of such Act (42 U.S.C. 
609(c)(4)) is amended by striking ``or (13)'' and inserting ``(13), or 
(16)''.
SEC. 4005. TECHNICAL CORRECTIONS.

    (a) Section 404(d)(1)(A) of the Social Security Act (42 U.S.C. 
604(d)(1)(A)) is amended by striking ``subtitle 1 of Title'' and 
inserting ``Subtitle A of title''.
    (b) Sections 407(c)(2)(A)(i) and 409(a)(3)(C) of such Act (42 U.S.C. 
607(c)(2)(A)(i) and 609(a)(3)(C)) are each amended by striking 
``403(b)(6)'' and inserting ``403(b)(5)''.
    (c) Section 409(a)(2)(A) of such Act (42 U.S.C. 609(a)(2)(A)) is 
amended by moving clauses (i) and (ii) 2 ems to the right.
    (d) Section 409(c)(2) of such Act (42 U.S.C. 609(c)(2)) is amended 
by inserting a comma after ``appropriate''.
    (e) Section 411(a)(1)(A)(ii)(III) of such Act (42 U.S.C. 
611(a)(1)(A)(ii)(III)) is amended by striking the last close 
parenthesis.

[[Page 126 STAT. 199]]

                  TITLE V--FEDERAL EMPLOYEES RETIREMENT

SEC. 5001. INCREASE IN CONTRIBUTIONS TO FEDERAL EMPLOYEES' 
                          RETIREMENT SYSTEM FOR NEW EMPLOYEES.

    (a) Definitions.--Section 8401 of title 5, United States Code, is 
amended--
            (1) in paragraph (35), by striking ``and'' at the end;
            (2) in paragraph (36), by striking the period and inserting 
        ``; and''; and
            (3) by adding at the end the following:
            ``(37) the term `revised annuity employee' means any 
        individual who--
                    ``(A) on December 31, 2012--
                          ``(i) is not an employee or Member covered 
                      under this chapter;
                          ``(ii) is not performing civilian service 
                      which is creditable service under section 8411; 
                      and
                          ``(iii) has less than 5 years of creditable 
                      civilian service under section 8411; and
                    ``(B) after December 31, 2012, becomes employed as 
                an employee or becomes a Member covered under this 
                chapter performing service which is creditable service 
                under section 8411.''.

    (b) Increase in Contributions.--Section 8422(a)(3) of title 5, 
United States Code, is amended--
            (1) by striking ``The applicable percentage under this 
        paragraph for civilian service'' and inserting ``(A) The 
        applicable percentage under this paragraph for civilian service 
        by employees or Members other than revised annuity employees''; 
        and
            (2) by adding at the end the following:

    ``(B) The applicable percentage under this paragraph for civilian 
service by revised annuity employees shall be as follows:

 
 
----------------------------------------------------------------------------------------------------------------
``Employee                                          9.3   After December 31, 2012.
Congressional employee                              9.3   After December 31, 2012.
Member                                              9.3   After December 31, 2012.
Law enforcement officer, firefighter,               9.8   After December 31, 2012.
 member of the Capitol Police, member of
 the Supreme Court Police, or air traffic
 controller
Nuclear materials courier                           9.8   After December 31, 2012.
Customs and border protection officer               9.8   After December 31, 2012.''.
----------------------------------------------------------------------------------------------------------------

    (c) Reduction in Congressional Annuities.--
            (1) In general.--Section 8415 of title 5, United States 
        Code, is amended--
                    (A) by redesignating subsections (d) through (m) as 
                subsections (e) through (n), respectively; and
                    (B) by inserting after subsection (c) the following:

    ``(d) Notwithstanding any other provision of law, the annuity of an 
individual described in subsection (b) or (c) who is a revised annuity 
employee shall be computed in the same manner as in the case of an 
individual described in subsection (a).''.
            (2) Technical and conforming amendments.--

[[Page 126 STAT. 200]]

                    (A) Section 8422(d)(2) of title 5, United States 
                Code, is amended by striking ``section 8415(l)'' and 
                inserting ``section 8415(m)''.
                    (B) Section 8452(d)(1) of title 5, United States 
                Code, is amended by striking ``subsection (g)'' and 
                inserting ``subsection (h)''.
                    (C) Section 8468(b)(1)(A) of title 5, United States 
                Code, is amended by striking ``section 8415(a) through 
                (h)'' and inserting ``section 8415(a) through (i)''.
                    (D) Section 805(a)(2)(B) of the Foreign Service Act 
                of 1980 (22 U.S.C. 4045(a)(2)(B)) is amended by striking 
                ``section 8415(d)'' and inserting ``section 8415(e)''.
                    (E) Section 806(a) of the Foreign Service Act of 
                1980 (22 U.S.C. 4046(a)) is amended by striking 
                ``section 8415(d)'' each place it appears and inserting 
                ``section 8415(e)''.
                    (F) Section 855(b) of the Foreign Service Act of 
                1980 (22 U.S.C. 4071d(b)) is amended--
                          (i) in paragraph (2)(A), by striking ``section 
                      8415(d)(1)'' and inserting ``section 8415(e)(1)''; 
                      and
                          (ii) in paragraph (5), by striking ``section 
                      8415(f)(1)'' and inserting ``section 8415(g)(1)''.
                    (G) Section 303(b)(1) of the Central Intelligence 
                Agency Retirement Act (50 U.S.C. 2153(b)(1)) is amended 
                by striking ``section 8415(d)'' and inserting ``section 
                8415(e)''.
SEC. 5002. FOREIGN SERVICE PENSION SYSTEM.

    (a) Definition.--Section 852 of the Foreign Service Act of 1980 (22 
U.S.C. 4071a) is amended--
            (1) by redesignating paragraphs (7), (8), and (9) as 
        paragraphs (8), (9), and (10), respectively; and
            (2) by inserting after paragraph (6) the following:
            ``(7) the term `revised annuity participant' means any 
        individual who--
                    ``(A) on December 31, 2012--
                          ``(i) is not a participant;
                          ``(ii) is not performing service which is 
                      creditable service under section 854; and
                          ``(iii) has less than 5 years creditable 
                      service under section 854; and
                    ``(B) after December 31, 2012, becomes a participant 
                performing service which is creditable service under 
                section 854;''.

    (b) Deductions and Withholdings From Pay.--Section 856(a)(2) of the 
Foreign Service Act of 1980 (22 U.S.C. 4071e(a)(2)) is amended--
            (1) by striking ``The applicable percentage under this 
        subsection'' and inserting ``(A) The applicable percentage for a 
        participant other than a revised annuity participant''; and
            (2) by adding at the end the following:

    ``(B) The applicable percentage for a revised annuity participant 
shall be as follows:

``9.85..............................  After December 31, 2012''.
 

SEC. 5003. CENTRAL INTELLIGENCE AGENCY RETIREMENT AND DISABILITY 
                          SYSTEM.

    Section 211(a) of the Central Intelligence Agency Retirement Act (50 
U.S.C. 2021(a)) is amended--

[[Page 126 STAT. 201]]

            (1) by redesignating paragraph (3) as paragraph (4); and
            (2) by striking paragraphs (1) and (2) and inserting the 
        following:
            ``(1) Definition.--In this subsection, the term `revised 
        annuity participant' means an individual who--
                    ``(A) on December 31, 2012--
                          ``(i) is not a participant;
                          ``(ii) is not performing qualifying service; 
                      and
                          ``(iii) has less than 5 years of qualifying 
                      service; and
                    ``(B) after December 31, 2012, becomes a participant 
                performing qualifying service.
            ``(2) Contributions.--
                    ``(A) In general.--Except as provided in subsection 
                (d), 7 percent of the basic pay received by a 
                participant other than a revised annuity participant for 
                any pay period shall be deducted and withheld from the 
                pay of that participant and contributed to the fund.
                    ``(B) Revised annuity participants.--Except as 
                provided in subsection (d), 9.3 percent of the basic pay 
                received by a revised annuity participant for any pay 
                period shall be deducted and withheld from the pay of 
                that revised annuity participant and contributed to the 
                fund.
            ``(3) Agency contributions.--
                    ``(A) In general.--An amount equal to 7 percent of 
                the basic pay received by a participant other than a 
                revised annuity participant shall be contributed to the 
                fund for a pay period for the participant from the 
                appropriation or fund which is used for payment of the 
                participant's basic pay.
                    ``(B) Revised annuity participants.--An amount equal 
                to 4.7 percent of the basic pay received by a revised 
                annuity participant shall be contributed to the fund for 
                a pay period for the revised annuity participant from 
                the appropriation or fund which is used for payment of 
                the revised annuity participant's basic pay.''.

  TITLE VI--PUBLIC SAFETY COMMUNICATIONS AND ELECTROMAGNETIC SPECTRUM 
                                AUCTIONS

SEC. 6001. <<NOTE: 47 USC 1401.>>  DEFINITIONS.

    In this title:
            (1) 700 mhz band.--The term ``700 MHz band'' means the 
        portion of the electromagnetic spectrum between the frequencies 
        from 698 megahertz to 806 megahertz.
            (2) 700 mhz d block spectrum.--The term ``700 MHz D block 
        spectrum'' means the portion of the electromagnetic spectrum 
        between the frequencies from 758 megahertz to 763 megahertz and 
        between the frequencies from 788 megahertz to 793 megahertz.
            (3) Appropriate committees of congress.--Except as otherwise 
        specifically provided, the term ``appropriate committees of 
        Congress'' means--

[[Page 126 STAT. 202]]

                    (A) the Committee on Commerce, Science, and 
                Transportation of the Senate; and
                    (B) the Committee on Energy and Commerce of the 
                House of Representatives.
            (4) Assistant secretary.--The term ``Assistant Secretary'' 
        means the Assistant Secretary of Commerce for Communications and 
        Information.
            (5) Board.--The term ``Board'' means the Board of the First 
        Responder Network Authority established under section 6204(b).
            (6) Broadcast television licensee.--The term ``broadcast 
        television licensee'' means the licensee of--
                    (A) a full-power television station; or
                    (B) a low-power television station that has been 
                accorded primary status as a Class A television licensee 
                under section 73.6001(a) of title 47, Code of Federal 
                Regulations.
            (7) Broadcast television spectrum.--The term ``broadcast 
        television spectrum'' means the portions of the electromagnetic 
        spectrum between the frequencies from 54 megahertz to 72 
        megahertz, from 76 megahertz to 88 megahertz, from 174 megahertz 
        to 216 megahertz, and from 470 megahertz to 698 megahertz.
            (8) Commercial mobile data service.--The term ``commercial 
        mobile data service'' means any mobile service (as defined in 
        section 3 of the Communications Act of 1934 (47 U.S.C. 153)) 
        that is--
                    (A) a data service;
                    (B) provided for profit; and
                    (C) available to the public or such classes of 
                eligible users as to be effectively available to a 
                substantial portion of the public, as specified by 
                regulation by the Commission.
            (9) Commercial mobile service.--The term ``commercial mobile 
        service'' has the meaning given such term in section 332 of the 
        Communications Act of 1934 (47 U.S.C. 332).
            (10) Commercial standards.--The term ``commercial 
        standards'' means the technical standards followed by the 
        commercial mobile service and commercial mobile data service 
        industries for network, device, and Internet Protocol 
        connectivity. Such term includes standards developed by the 
        Third Generation Partnership Project (3GPP), the Institute of 
        Electrical and Electronics Engineers (IEEE), the Alliance for 
        Telecommunications Industry Solutions (ATIS), the Internet 
        Engineering Task Force (IETF), and the International 
        Telecommunication Union (ITU).
            (11) Commission.--The term ``Commission'' means the Federal 
        Communications Commission.
            (12) Core network.--The term ``core network'' means the core 
        network described in section 6202(b)(1).
            (13) Emergency call.--The term ``emergency call'' means any 
        real-time communication with a public safety answering point or 
        other emergency management or response agency, including--
                    (A) through voice, text, or video and related data; 
                and
                    (B) nonhuman-initiated automatic event alerts, such 
                as alarms, telematics, or sensor data, which may also 
                include real-time voice, text, or video communications.

[[Page 126 STAT. 203]]

            (14) Existing public safety broadband spectrum.--The term 
        ``existing public safety broadband spectrum'' means the portion 
        of the electromagnetic spectrum between the frequencies--
                    (A) from 763 megahertz to 768 megahertz;
                    (B) from 793 megahertz to 798 megahertz;
                    (C) from 768 megahertz to 769 megahertz; and
                    (D) from 798 megahertz to 799 megahertz.
            (15) First responder network authority.--The term ``First 
        Responder Network Authority'' means the First Responder Network 
        Authority established under section 6204.
            (16) Forward auction.--The term ``forward auction'' means 
        the portion of an incentive auction of broadcast television 
        spectrum under section 6403(c).
            (17) Incentive auction.--The term ``incentive auction'' 
        means a system of competitive bidding under subparagraph (G) of 
        section 309(j)(8) of the Communications Act of 1934, as added by 
        section 6402.
            (18) Interoperability board.--The term ``Interoperability 
        Board'' means the Technical Advisory Board for First Responder 
        Interoperability established under section 6203.
            (19) Multichannel video programming distributor.--The term 
        ``multichannel video programming distributor'' has the meaning 
        given such term in section 602 of the Communications Act of 1934 
        (47 U.S.C. 522).
            (20) Narrowband spectrum.--The term ``narrowband spectrum'' 
        means the portion of the electromagnetic spectrum between the 
        frequencies from 769 megahertz to 775 megahertz and between the 
        frequencies from 799 megahertz to 805 megahertz.
            (21) Nationwide public safety broadband network.--The term 
        ``nationwide public safety broadband network'' means the 
        nationwide, interoperable public safety broadband network 
        described in section 6202.
            (22) Next generation 9-1-1 services.--The term ``Next 
        Generation 9-1-1 services'' means an IP-based system comprised 
        of hardware, software, data, and operational policies and 
        procedures that--
                    (A) provides standardized interfaces from emergency 
                call and message services to support emergency 
                communications;
                    (B) processes all types of emergency calls, 
                including voice, text, data, and multimedia information;
                    (C) acquires and integrates additional emergency 
                call data useful to call routing and handling;
                    (D) delivers the emergency calls, messages, and data 
                to the appropriate public safety answering point and 
                other appropriate emergency entities;
                    (E) supports data or video communications needs for 
                coordinated incident response and management; and
                    (F) provides broadband service to public safety 
                answering points or other first responder entities.
            (23) NIST.--The term ``NIST'' means the National Institute 
        of Standards and Technology.
            (24) NTIA.--The term ``NTIA'' means the National 
        Telecommunications and Information Administration.

[[Page 126 STAT. 204]]

            (25) Public safety answering point.--The term ``public 
        safety answering point'' has the meaning given such term in 
        section 222 of the Communications Act of 1934 (47 U.S.C. 222).
            (26) Public safety entity.--The term ``public safety 
        entity'' means an entity that provides public safety services.
            (27) Public safety services.--The term ``public safety 
        services''--
                    (A) has the meaning given the term in section 337(f) 
                of the Communications Act of 1934 (47 U.S.C. 337(f)); 
                and
                    (B) includes services provided by emergency response 
                providers, as that term is defined in section 2 of the 
                Homeland Security Act of 2002 (6 U.S.C. 101).
            (28) Public safety trust fund.--The term ``Public Safety 
        Trust Fund'' means the trust fund established under section 
        6413(a)(1).
            (29) Radio access network.--The term ``radio access 
        network'' means the radio access network described in section 
        6202(b)(2).
            (30) Reverse auction.--The term ``reverse auction'' means 
        the portion of an incentive auction of broadcast television 
        spectrum under section 6403(a), in which a broadcast television 
        licensee may submit bids stating the amount it would accept for 
        voluntarily relinquishing some or all of its broadcast 
        television spectrum usage rights.
            (31) State.--The term ``State'' has the meaning given such 
        term in section 3 of the Communications Act of 1934 (47 U.S.C. 
        153).
            (32) Ultra high frequency.--The term ``ultra high 
        frequency'' means, with respect to a television channel, that 
        the channel is located in the portion of the electromagnetic 
        spectrum between the frequencies from 470 megahertz to 698 
        megahertz.
            (33) Very high frequency.--The term ``very high frequency'' 
        means, with respect to a television channel, that the channel is 
        located in the portion of the electromagnetic spectrum between 
        the frequencies from 54 megahertz to 72 megahertz, from 76 
        megahertz to 88 megahertz, or from 174 megahertz to 216 
        megahertz.
SEC. 6002. <<NOTE: 47 USC 1402.>>  RULE OF CONSTRUCTION.

    Each range of frequencies described in this title shall be construed 
to be inclusive of the upper and lower frequencies in the range.
SEC. 6003. <<NOTE: 47 USC 1403.>>  ENFORCEMENT.

    (a) In General.--The Commission shall implement and enforce this 
title as if this title is a part of the Communications Act of 1934 (47 
U.S.C. 151 et seq.). A violation of this title, or a regulation 
promulgated under this title, shall be considered to be a violation of 
the Communications Act of 1934, or a regulation promulgated under such 
Act, respectively.
    (b) Exceptions.--
            (1) Other agencies.--Subsection (a) does not apply in the 
        case of a provision of this title that is expressly required to 
        be carried out by an agency (as defined in section 551 of title 
        5, United States Code) other than the Commission.

[[Page 126 STAT. 205]]

            (2) NTIA regulations.--The Assistant Secretary may 
        promulgate such regulations as are necessary to implement and 
        enforce any provision of this title that is expressly required 
        to be carried out by the Assistant Secretary.
SEC. 6004. <<NOTE: 47 USC 1404.>>  NATIONAL SECURITY RESTRICTIONS 
                          ON USE OF FUNDS AND AUCTION 
                          PARTICIPATION.

    (a) Use of Funds.--No funds made available by subtitle B or C may be 
used to make payments under a contract to a person described in 
subsection (c).
    (b) Auction Participation.--A person described in subsection (c) may 
not participate in a system of competitive bidding under section 309(j) 
of the Communications Act of 1934 (47 U.S.C. 309(j))--
            (1) that is required to be conducted by this title; or
            (2) in which any spectrum usage rights for which licenses 
        are being assigned were made available under clause (i) of 
        subparagraph (G) of paragraph (8) of such section, as added by 
        section 6402.

    (c) Person Described.--A person described in this subsection is a 
person who has been, for reasons of national security, barred by any 
agency of the Federal Government from bidding on a contract, 
participating in an auction, or receiving a grant.

           Subtitle A--Reallocation of Public Safety Spectrum

SEC. 6101. <<NOTE: 47 USC 1411.>> REALLOCATION OF D BLOCK TO 
                          PUBLIC SAFETY.

    (a) In General.--The Commission shall reallocate the 700 MHz D block 
spectrum for use by public safety entities in accordance with the 
provisions of this Act.
    (b) Spectrum Allocation.--Section 337(a) of the Communications Act 
of 1934 (47 U.S.C. 337(a)) is amended--
            (1) by striking ``24'' in paragraph (1) and inserting 
        ``34''; and
            (2) by striking ``36'' in paragraph (2) and inserting 
        ``26''.
SEC. 6102. <<NOTE: 47 USC 1412.>> FLEXIBLE USE OF NARROWBAND 
                          SPECTRUM.

    The Commission may allow the narrowband spectrum to be used in a 
flexible manner, including usage for public safety broadband 
communications, subject to such technical and interference protection 
measures as the Commission may require.
SEC. 6103. <<NOTE: 47 USC 1413.>> 470-512 MHZ PUBLIC SAFETY 
                          SPECTRUM.

    (a) In General.--Not <<NOTE: Deadline.>> later than 9 years after 
the date of enactment of this title, the Commission shall--
            (1) reallocate the spectrum in the 470-512 MHz band 
        (referred to in this section as the ``T-Band spectrum'') 
        currently used by public safety eligibles as identified in 
        section 90.303 of title 47, Code of Federal Regulations; and
            (2) begin a system of competitive bidding under section 
        309(j) of the Communications Act of 1934 (47 U.S.C. 309(j)) to 
        grant new initial licenses for the use of the spectrum described 
        in paragraph (1).

    (b) Auction Proceeds.--Proceeds <<NOTE: Grants.>> (including 
deposits and upfront payments from successful bidders) from the 
competitive bidding system described in subsection (a)(2) shall be 
available

[[Page 126 STAT. 206]]

to the Assistant Secretary to make grants in such sums as necessary to 
cover relocation costs for the relocation of public safety entities from 
the T-Band spectrum.

    (c) <<NOTE: Deadline.>>  Relocation.--Relocation shall be completed 
not later than 2 years after the date on which the system of competitive 
bidding described in subsection (a)(2) is completed.

            Subtitle B--Governance of Public Safety Spectrum

SEC. 6201. <<NOTE: 47 USC 1421.>>  SINGLE PUBLIC SAFETY WIRELESS 
                          NETWORK LICENSEE.

    (a) Reallocation and Grant of License.--Notwithstanding any other 
provision of law, and subject to the provisions of this Act, the 
Commission shall reallocate and grant a license to the First Responder 
Network Authority for the use of the 700 MHz D block spectrum and 
existing public safety broadband spectrum.
    (b) Term of License.--
            (1) Initial license.--The license granted under subsection 
        (a) shall be for an initial term of 10 years from the date of 
        the initial issuance of the license.
            (2) Renewal of license.--Prior to expiration of the term of 
        the initial license granted under subsection (a) or the 
        expiration of any subsequent renewal of such license, the First 
        Responder Network Authority shall submit to the Commission an 
        application for the renewal of such license. Such renewal 
        application shall demonstrate that, during the preceding license 
        term, the First Responder Network Authority has met the duties 
        and obligations set forth under this Act. A renewal license 
        granted under this paragraph shall be for a term of not to 
        exceed 10 years.

    (c) Facilitation of Transition.--The Commission shall take all 
actions necessary to facilitate the transition of the existing public 
safety broadband spectrum to the First Responder Network Authority.
SEC. 6202. <<NOTE: 47 USC 1422.>>  PUBLIC SAFETY BROADBAND 
                          NETWORK.

    (a) Establishment.--The First Responder Network Authority shall 
ensure the establishment of a nationwide, interoperable public safety 
broadband network.
    (b) Network Components.--The nationwide public safety broadband 
network shall be based on a single, national network architecture that 
evolves with technological advancements and initially consists of--
            (1) a core network that--
                    (A) consists of national and regional data centers, 
                and other elements and functions that may be distributed 
                geographically, all of which shall be based on 
                commercial standards; and
                    (B) provides the connectivity between--
                          (i) the radio access network; and
                          (ii) the public Internet or the public 
                      switched network, or both; and
            (2) a radio access network that--
                    (A) consists of all cell site equipment, antennas, 
                and backhaul equipment, based on commercial standards, 
                that

[[Page 126 STAT. 207]]

                are required to enable wireless communications with 
                devices using the public safety broadband spectrum; and
                    (B) shall be developed, constructed, managed, 
                maintained, and operated taking into account the plans 
                developed in the State, local, and tribal planning and 
                implementation grant program under section 6302(a).
SEC. 6203. <<NOTE: 47 USC 1423.>>  PUBLIC SAFETY INTEROPERABILITY 
                          BOARD.

    (a) Establishment.--There is established within the Commission an 
advisory board to be known as the ``Technical Advisory Board for First 
Responder Interoperability''.
    (b) Membership.--
            (1) In general.--
                    (A) Voting members.--Not later than 30 days after 
                the date of enactment of this title, the Chairman of the 
                Commission shall appoint 14 voting members to the 
                Interoperability Board, of which--
                          (i) 4 members shall be representatives of 
                      wireless providers, of which--
                                    (I) 2 members shall be 
                                representatives of national wireless 
                                providers;
                                    (II) 1 member shall be a 
                                representative of regional wireless 
                                providers; and
                                    (III) 1 member shall be a 
                                representative of rural wireless 
                                providers;
                          (ii) 3 members shall be representatives of 
                      equipment manufacturers;
                          (iii) 4 members shall be representatives of 
                      public safety entities, of which--
                                    (I) not less than 1 member shall be 
                                a representative of management level 
                                employees of public safety entities; and
                                    (II) not less than 1 member shall be 
                                a representative of employees of public 
                                safety entities;
                          (iv) 3 members shall be representatives of 
                      State and local governments, chosen to reflect 
                      geographic and population density differences 
                      across the United States; and
                          (v) all members shall have specific expertise 
                      necessary to developing technical requirements 
                      under this section, such as technical expertise, 
                      public safety communications expertise, and 
                      commercial network experience.
                    (B) Non-voting member.--The Assistant Secretary 
                shall appoint 1 non-voting member to the 
                Interoperability Board.
            (2) Period of appointment.--
                    (A) In general.--Except as provided in subparagraph 
                (B), members of the Interoperability Board shall be 
                appointed for the life of the Interoperability Board.
                    (B) Removal for cause.--A member of the 
                Interoperability Board may be removed for cause upon the 
                determination of the Chairman of the Commission.
            (3) Vacancies.--Any vacancy in the Interoperability Board 
        shall not affect the powers of the Interoperability Board, and 
        shall be filled in the same manner as the original appointment.

[[Page 126 STAT. 208]]

            (4) Chairperson and vice chairperson.--The Interoperability 
        Board shall select a Chairperson and Vice Chairperson from among 
        the members of the Interoperability Board.
            (5) Quorum.--A majority of the members of the 
        Interoperability Board shall constitute a quorum.

    (c) Duties of the Interoperability Board.--
            (1) <<NOTE: Deadline.>>  Development of technical 
        requirements.--Not later than 90 days after the date of 
        enactment of this Act, the Interoperability Board, in 
        consultation with the NTIA, NIST, and the Office of Emergency 
        Communications of the Department of Homeland Security, shall--
                    (A) develop recommended minimum technical 
                requirements to ensure a nationwide level of 
                interoperability for the nationwide public safety 
                broadband network; and
                    (B) submit to the Commission for review in 
                accordance with paragraph (3) recommended minimum 
                technical requirements described in subparagraph (A).
            (2) Consideration.--In developing recommended minimum 
        technical requirements under paragraph (1), the Interoperability 
        Board shall base the recommended minimum technical requirements 
        on the commercial standards for Long Term Evolution (LTE) 
        service.
            (3) Approval of recommendations.--
                    (A) <<NOTE: Deadline.>>  In general.--Not later than 
                30 days after the date on which the Interoperability 
                Board submits recommended minimum technical requirements 
                under paragraph (1)(B), the Commission shall approve the 
                recommendations, with any revisions it deems necessary, 
                and transmit such recommendations to the First Responder 
                Network Authority.
                    (B) Review.--Any actions taken under subparagraph 
                (A) shall not be reviewable as a final agency action.

    (d) Travel Expenses.--The members of the Interoperability Board 
shall be allowed travel expenses, including per diem in lieu of 
subsistence, at rates authorized for employees of agencies under 
subchapter I of chapter 57 of title 5, United States Code, while away 
from their homes or regular places of business in the performance of 
services for the Interoperability Board.
    (e) Exemption From FACA.--The Federal Advisory Committee Act (5 
U.S.C. App.) shall not apply to the Interoperability Board.
    (f) Termination of Authority.--The Interoperability Board shall 
terminate 15 days after the date on which the Commission transmits the 
recommendations to the First Responder Network Authority under 
subsection (c)(3)(A).
SEC. 6204. <<NOTE: 47 USC 1424.>>  ESTABLISHMENT OF THE FIRST 
                          RESPONDER NETWORK AUTHORITY.

    (a) Establishment.--There is established as an independent authority 
within the NTIA the ``First Responder Network Authority'' or 
``FirstNet''.
    (b) Board.--
            (1) In general.--The First Responder Network Authority shall 
        be headed by a Board, which shall consist of--
                    (A) the Secretary of Homeland Security;
                    (B) the Attorney General of the United States;
                    (C) the Director of the Office of Management and 
                Budget; and

[[Page 126 STAT. 209]]

                    (D) 12 individuals appointed by the Secretary of 
                Commerce in accordance with paragraph (2).
            (2) Appointments.--
                    (A) In general.--In making appointments under 
                paragraph (1)(D), the Secretary of Commerce shall--
                          (i) appoint not fewer than 3 individuals to 
                      represent the collective interests of the States, 
                      localities, tribes, and territories;
                          (ii) seek to ensure geographic and regional 
                      representation of the United States in such 
                      appointments;
                          (iii) seek to ensure rural and urban 
                      representation in such appointments; and
                          (iv) appoint not fewer than 3 individuals who 
                      have served as public safety professionals.
                    (B) Required qualifications.--
                          (i) In general.--Each member appointed under 
                      paragraph (1)(D) should meet not less than 1 of 
                      the following criteria:
                                    (I) Public safety experience.--
                                Knowledge and experience in the use of 
                                Federal, State, local, or tribal public 
                                safety or emergency response.
                                    (II) Technical expertise.--Technical 
                                expertise and fluency regarding 
                                broadband communications, including 
                                public safety communications.
                                    (III) Network expertise.--Expertise 
                                in building, deploying, and operating 
                                commercial telecommunications networks.
                                    (IV) Financial expertise.--Expertise 
                                in financing and funding 
                                telecommunications networks.
                          (ii) Expertise to be represented.--In making 
                      appointments under paragraph (1)(D), the Secretary 
                      of Commerce shall appoint--
                                    (I) not fewer than 1 individual who 
                                satisfies the requirement under 
                                subclause (II) of clause (i);
                                    (II) not fewer than 1 individual who 
                                satisfies the requirement under 
                                subclause (III) of clause (i); and
                                    (III) not fewer than 1 individual 
                                who satisfies the requirement under 
                                subclause (IV) of clause (i).
                    (C) Citizenship.--No individual other than a citizen 
                of the United States may serve as a member of the Board.

    (c) Terms of Appointment.--
            (1) Initial appointment deadline.--Members of the Board 
        shall be appointed not later than 180 days after the date of the 
        enactment of this title.
            (2) Terms.--
                    (A) Length.--
                          (i) In general.--Each member of the Board 
                      described in subparagraphs (A) through (C) of 
                      subsection (b)(1) shall serve as a member of the 
                      Board for the life of the First Responder Network 
                      Authority.
                          (ii) Appointed individuals.--The term of 
                      office of each individual appointed to be a member 
                      of the Board under subsection (b)(1)(D) shall be 3 
                      years. No

[[Page 126 STAT. 210]]

                      member described in this clause may serve more 
                      than 2 consecutive full 3-year terms.
                    (B) Expiration of term.--Any member whose term has 
                expired may serve until such member's successor has 
                taken office, or until the end of the calendar year in 
                which such member's term has expired, whichever is 
                earlier.
                    (C) Appointment to fill vacancy.--Any member 
                appointed to fill a vacancy occurring prior to the 
                expiration of the term for which that member's 
                predecessor was appointed shall be appointed for the 
                remainder of the predecessor's term.
                    (D) Staggered terms.--With respect to the initial 
                members of the Board appointed under subsection 
                (b)(1)(D)--
                          (i) 4 members shall serve for a term of 3 
                      years;
                          (ii) 4 members shall serve for a term of 2 
                      years; and
                          (iii) 4 members shall serve for a term of 1 
                      year.
            (3) Vacancies.--A vacancy in the membership of the Board 
        shall not affect the Board's powers, and shall be filled in the 
        same manner as the original member was appointed.

    (d) Chair.--
            (1) Selection.--The Secretary of Commerce shall select, from 
        among the members of the Board appointed under subsection 
        (b)(1)(D), an individual to serve for a 2-year term as Chair of 
        the Board.
            (2) Consecutive terms.--An individual may not serve for more 
        than 2 consecutive terms as Chair of the Board.

    (e) Meetings.--
            (1) Frequency.--The Board shall meet--
                    (A) at the call of the Chair; and
                    (B) not less frequently than once each quarter.
            (2) Transparency.--Meetings of the Board, including any 
        committee of the Board, shall be open to the public. The Board 
        may, by majority vote, close any such meeting only for the time 
        necessary to preserve the confidentiality of commercial or 
        financial information that is privileged or confidential, to 
        discuss personnel matters, or to discuss legal matters affecting 
        the First Responder Network Authority, including pending or 
        potential litigation.

    (f) Quorum.--Eight members of the Board shall constitute a quorum, 
including at least 6 of the members appointed under subsection 
(b)(1)(D).
    (g) Compensation.--
            (1) In general.--The members of the Board appointed under 
        subsection (b)(1)(D) shall be compensated at the daily rate of 
        basic pay for level IV of the Executive Schedule for each day 
        during which such members are engaged in performing a function 
        of the Board.
            (2) Prohibition on compensation.--A member of the Board 
        appointed under subparagraphs (A) through (C) of subsection 
        (b)(1) shall serve without additional pay, and shall not 
        otherwise benefit, directly or indirectly, as a result of their 
        service to the First Responder Network Authority, but shall be 
        allowed a per diem allowance for travel expenses, at rates 
        authorized for an employee of an agency under subchapter I of 
        chapter 57 of title 5, United States Code, while away

[[Page 126 STAT. 211]]

        from the home or regular place of business of the member in the 
        performance of the duties of the First Responder Network 
        Authority.
SEC. 6205. <<NOTE: 47 USC 1425.>>  ADVISORY COMMITTEES OF THE 
                          FIRST RESPONDER NETWORK AUTHORITY.

    (a) Advisory Committees.--The First Responder Network Authority--
            (1) shall establish a standing public safety advisory 
        committee to assist the First Responder Network Authority in 
        carrying out its duties and responsibilities under this 
        subtitle; and
            (2) may establish additional standing or ad hoc committees, 
        panels, or councils as the First Responder Network Authority 
        determines are necessary.

    (b) Selection of Agents, Consultants, and Experts.--
            (1) In general.--The First Responder Network Authority shall 
        select parties to serve as its agents, consultants, or experts 
        in a fair, transparent, and objective manner, and such agents 
        may include a program manager to carry out certain of the duties 
        and responsibilities of deploying and operating the nationwide 
        public safety broadband network described in subsections (b) and 
        (c) of section 6206.
            (2) Binding and final.--If the selection of an agent, 
        consultant, or expert satisfies the requirements under paragraph 
        (1), the selection of that agent, consultant, or expert shall be 
        final and binding.
SEC. 6206. <<NOTE: 47 USC 1426.>>  POWERS, DUTIES, AND 
                          RESPONSIBILITIES OF THE FIRST RESPONDER 
                          NETWORK AUTHORITY.

    (a) General Powers.--The First Responder Network Authority shall 
have the authority to do the following:
            (1) To exercise, through the actions of its Board, all 
        powers specifically granted by the provisions of this subtitle, 
        and such incidental powers as shall be necessary.
            (2) To hold such hearings, sit and act at such times and 
        places, take such testimony, and receive such evidence as the 
        First Responder Network Authority considers necessary to carry 
        out its responsibilities and duties.
            (3) To obtain grants and funds from and make contracts with 
        individuals, private companies, organizations, institutions, and 
        Federal, State, regional, and local agencies.
            (4) To accept, hold, administer, and utilize gifts, 
        donations, and bequests of property, both real and personal, for 
        the purposes of aiding or facilitating the work of the First 
        Responder Network Authority.
            (5) To spend funds under paragraph (3) in a manner 
        authorized by the Board, but only for purposes that will advance 
        or enhance public safety communications consistent with this 
        title.
            (6) To take such other actions as the First Responder 
        Network Authority (through the Board) may from time to time 
        determine necessary, appropriate, or advisable to accomplish the 
        purposes of this title.

    (b) Duty and Responsibility to Deploy and Operate a Nationwide 
Public Safety Broadband Network.--
            (1) In general.--The First Responder Network Authority shall 
        hold the single public safety wireless license granted

[[Page 126 STAT. 212]]

        under section 6201 and take all actions necessary to ensure the 
        building, deployment, and operation of the nationwide public 
        safety broadband network, in consultation with Federal, State, 
        tribal, and local public safety entities, the Director of NIST, 
        the Commission, and the public safety advisory committee 
        established in section 6205(a), including by, at a minimum--
                    (A) ensuring nationwide standards for use and access 
                of the network;
                    (B) issuing open, transparent, and competitive 
                requests for proposals to private sector entities for 
                the purposes of building, operating, and maintaining the 
                network that use, without materially changing, the 
                minimum technical requirements developed under section 
                6203;
                    (C) encouraging that such requests leverage, to the 
                maximum extent economically desirable, existing 
                commercial wireless infrastructure to speed deployment 
                of the network; and
                    (D) managing and overseeing the implementation and 
                execution of contracts or agreements with non-Federal 
                entities to build, operate, and maintain the network.
            (2) Requirements.--In carrying out the duties and 
        responsibilities of this subsection, including issuing requests 
        for proposals, the First Responder Network Authority shall--
                    (A) ensure the safety, security, and resiliency of 
                the network, including requirements for protecting and 
                monitoring the network to protect against cyberattack;
                    (B) promote competition in the equipment market, 
                including devices for public safety communications, by 
                requiring that equipment for use on the network be--
                          (i) built to open, non-proprietary, 
                      commercially available standards;
                          (ii) capable of being used by any public 
                      safety entity and by multiple vendors across all 
                      public safety broadband networks operating in the 
                      700 MHz band; and
                          (iii) backward-compatible with existing 
                      commercial networks to the extent that such 
                      capabilities are necessary and technically and 
                      economically reasonable;
                    (C) promote integration of the network with public 
                safety answering points or their equivalent; and
                    (D) address special considerations for areas or 
                regions with unique homeland security or national 
                security needs.
            (3) Rural coverage.--In carrying out the duties and 
        responsibilities of this subsection, including issuing requests 
        for proposals, the nationwide, interoperable public safety 
        broadband network, consistent with the license granted under 
        section 6201, shall require deployment phases with substantial 
        rural coverage milestones as part of each phase of the 
        construction and deployment of the network. To the maximum 
        extent economically desirable, such proposals shall include 
        partnerships with existing commercial mobile providers to 
        utilize cost-effective opportunities to speed deployment in 
        rural areas.
            (4) Execution of authority.--In carrying out the duties and 
        responsibilities of this subsection, the First Responder Network 
        Authority may--

[[Page 126 STAT. 213]]

                    (A) obtain grants from and make contracts with 
                individuals, private companies, and Federal, State, 
                regional, and local agencies;
                    (B) hire or accept voluntary services of 
                consultants, experts, advisory boards, and panels to aid 
                the First Responder Network Authority in carrying out 
                such duties and responsibilities;
                    (C) receive payment for use of--
                          (i) network capacity licensed to the First 
                      Responder Network Authority; and
                          (ii) network infrastructure constructed, 
                      owned, or operated by the First Responder Network 
                      Authority; and
                    (D) take such other actions as may be necessary to 
                accomplish the purposes set forth in this subsection.

    (c) Other Specific Duties and Responsibilities.--
            (1) Establishment of network policies.--In carrying out the 
        requirements under subsection (b), the First Responder Network 
        Authority shall develop--
                    (A) requests for proposals with appropriate--
                          (i) timetables for construction, including by 
                      taking into consideration the time needed to build 
                      out to rural areas and the advantages offered 
                      through partnerships with existing commercial 
                      providers under paragraph (3);
                          (ii) coverage areas, including coverage in 
                      rural and nonurban areas;
                          (iii) service levels;
                          (iv) performance criteria; and
                          (v) other similar matters for the construction 
                      and deployment of such network;
                    (B) the technical and operational requirements of 
                the network;
                    (C) practices, procedures, and standards for the 
                management and operation of such network;
                    (D) terms of service for the use of such network, 
                including billing practices; and
                    (E) ongoing compliance review and monitoring of 
                the--
                          (i) management and operation of such network;
                          (ii) practices and procedures of the entities 
                      operating on and the personnel using such network; 
                      and
                          (iii) necessary training needs of network 
                      operators and users.
            (2) State and local planning.--
                    (A) Required consultation.--In developing requests 
                for proposals and otherwise carrying out its 
                responsibilities under this Act, the First Responder 
                Network Authority shall consult with regional, State, 
                tribal, and local jurisdictions regarding the 
                distribution and expenditure of any amounts required to 
                carry out the policies established under paragraph (1), 
                including with regard to the--
                          (i) construction of a core network and any 
                      radio access network build out;
                          (ii) placement of towers;
                          (iii) coverage areas of the network, whether 
                      at the regional, State, tribal, or local level;

[[Page 126 STAT. 214]]

                          (iv) adequacy of hardening, security, 
                      reliability, and resiliency requirements;
                          (v) assignment of priority to local users;
                          (vi) assignment of priority and selection of 
                      entities seeking access to or use of the 
                      nationwide public safety interoperable broadband 
                      network established under subsection (b); and
                          (vii) training needs of local users.
                    (B) Method of consultation.--The consultation 
                required under subparagraph (A) shall occur between the 
                First Responder Network Authority and the single officer 
                or governmental body designated under section 6302(d).
            (3) <<NOTE: Contracts.>>  Leveraging existing 
        infrastructure.--In carrying out the requirement under 
        subsection (b), the First Responder Network Authority shall 
        enter into agreements to utilize, to the maximum extent 
        economically desirable, existing--
                    (A) commercial or other communications 
                infrastructure; and
                    (B) Federal, State, tribal, or local infrastructure.
            (4) Maintenance and upgrades.--The First Responder Network 
        Authority shall ensure the maintenance, operation, and 
        improvement of the nationwide public safety broadband network, 
        including by ensuring that the First Responder Network Authority 
        updates and revises any policies established under paragraph (1) 
        to take into account new and evolving technologies.
            (5) Roaming agreements.--The First Responder Network 
        Authority shall negotiate and enter into, as it determines 
        appropriate, roaming agreements with commercial network 
        providers to allow the nationwide public safety broadband 
        network to roam onto commercial networks and gain prioritization 
        of public safety communications over such networks in times of 
        an emergency.
            (6) <<NOTE: Lists.>>  Network infrastructure and device 
        criteria.--The Director of NIST, in consultation with the First 
        Responder Network Authority and the Commission, shall ensure the 
        development of a list of certified devices and components 
        meeting appropriate protocols and standards for public safety 
        entities and commercial vendors to adhere to, if such entities 
        or vendors seek to have access to, use of, or compatibility with 
        the nationwide public safety broadband network.
            (7) Representation before standard setting entities.--The 
        First Responder Network Authority, in consultation with the 
        Director of NIST, the Commission, and the public safety advisory 
        committee established under section 6205(a), shall represent the 
        interests of public safety users of the nationwide public safety 
        broadband network before any proceeding, negotiation, or other 
        matter in which a standards organization, standards body, 
        standards development organization, or any other recognized 
        standards-setting entity addresses the development of standards 
        relating to interoperability.
            (8) Prohibition on negotiation with foreign governments.--
        The First Responder Network Authority shall not have the 
        authority to negotiate or enter into any agreements with a 
        foreign government on behalf of the United States.

[[Page 126 STAT. 215]]

    (d) Exemption From Certain Laws.--Any action taken or decisions made 
by the First Responder Network Authority shall be exempt from the 
requirements of--
            (1) section 3506 of title 44, United States Code (commonly 
        referred to as the Paperwork Reduction Act);
            (2) chapter 5 of title 5, United States Code (commonly 
        referred to as the Administrative Procedures Act); and
            (3) chapter 6 of title 5, United States Code (commonly 
        referred to as the Regulatory Flexibility Act).

    (e) Network Construction Fund.--
            (1) Establishment.--There is established in the Treasury of 
        the United States a fund to be known as the ``Network 
        Construction Fund''.
            (2) Use of fund.--Amounts deposited into the Network 
        Construction Fund shall be used by the--
                    (A) First Responder Network Authority to carry out 
                this section, except for administrative expenses; and
                    (B) NTIA to make grants to States under section 
                6302(e)(3)(C)(iii)(I).

    (f) Termination of Authority.--The authority of the First Responder 
Network Authority shall terminate on the date that is 15 years after the 
date of enactment of this title.
    (g) GAO Report.--Not later than 10 years after the date of the 
enactment of this Act, the Comptroller General of the United States 
shall submit to Congress a report on what action Congress should take 
regarding the 15-year sunset of authority under subsection (f).
SEC. 6207. <<NOTE: 47 USC 1427.>>  INITIAL FUNDING FOR THE FIRST 
                          RESPONDER NETWORK AUTHORITY.

    (a) Borrowing Authority.--Prior to the deposit of proceeds into the 
Public Safety Trust Fund from the incentive auctions to be carried out 
under section 309(j)(8)(G) of the Communications Act of 1934 or the 
auction of spectrum pursuant to section 6401, the NTIA may borrow from 
the Treasury such sums as may be necessary, but not to exceed 
$2,000,000,000, to implement this subtitle. <<NOTE: Reimbursement.>> The 
NTIA shall reimburse the Treasury, without interest, from funds 
deposited into the Public Safety Trust Fund.

    (b) Prohibition.--
            (1) <<NOTE: Time period.>>  In general.--Administrative 
        expenses of the First Responder Network Authority may not exceed 
        $100,000,000 during the 10-year period beginning on the date of 
        enactment of this title.
            (2) Definition.--For purposes of this subsection, the term 
        ``administrative expenses'' does not include the costs incurred 
        by the First Responder Network Authority for oversight and 
        audits to protect against waste, fraud, and abuse.
SEC. 6208. <<NOTE: 47 USC 1428.>>  PERMANENT SELF-FUNDING; DUTY TO 
                          ASSESS AND COLLECT FEES FOR NETWORK USE.

    (a) In General.--Notwithstanding section 337 of the Communications 
Act of 1934 (47 U.S.C. 337), the First Responder Network Authority is 
authorized to assess and collect the following fees:
            (1) Network user fee.--A user or subscription fee from each 
        entity, including any public safety entity or secondary user, 
        that seeks access to or use of the nationwide public safety 
        broadband network.
            (2) Lease fees related to network capacity.--

[[Page 126 STAT. 216]]

                    (A) In general.--A fee from any entity that seeks to 
                enter into a covered leasing agreement.
                    (B) <<NOTE: Definition.>>  Covered leasing 
                agreement.--For purposes of subparagraph (A), a 
                ``covered leasing agreement'' means a written agreement 
                resulting from a public-private arrangement to 
                construct, manage, and operate the nationwide public 
                safety broadband network between the First Responder 
                Network Authority and secondary user to permit--
                          (i) access to network capacity on a secondary 
                      basis for non-public safety services; and
                          (ii) the spectrum allocated to such entity to 
                      be used for commercial transmissions along the 
                      dark fiber of the long-haul network of such 
                      entity.
            (3) Lease fees related to network equipment and 
        infrastructure.--A fee from any entity that seeks access to or 
        use of any equipment or infrastructure, including antennas or 
        towers, constructed or otherwise owned by the First Responder 
        Network Authority resulting from a public-private arrangement to 
        construct, manage, and operate the nationwide public safety 
        broadband network.

    (b) Establishment of Fee Amounts; Permanent Self-funding.--The total 
amount of the fees assessed for each fiscal year pursuant to this 
section shall be sufficient, and shall not exceed the amount necessary, 
to recoup the total expenses of the First Responder Network Authority in 
carrying out its duties and responsibilities described under this 
subtitle for the fiscal year involved.
    (c) <<NOTE: Review.>>  Annual Approval.--The NTIA shall review the 
fees assessed under this section on an annual basis, and such fees may 
only be assessed if approved by the NTIA.

    (d) Required Reinvestment of Funds.--The First Responder Network 
Authority shall reinvest amounts received from the assessment of fees 
under this section in the nationwide public safety interoperable 
broadband network by using such funds only for constructing, 
maintaining, operating, or improving the network.
SEC. 6209. <<NOTE: 47 USC 1429.>>  AUDIT AND REPORT.

    (a) Audit.--
            (1) In general.--The Secretary of Commerce shall enter into 
        a contract with an independent auditor to conduct an audit, on 
        an annual basis, of the First Responder Network Authority in 
        accordance with general accounting principles and procedures 
        applicable to commercial corporate transactions. Each audit 
        conducted under this paragraph shall be made available to the 
        appropriate committees of Congress.
            (2) Location.--Any audit conducted under paragraph (1) shall 
        be conducted at the place or places where accounts of the First 
        Responder Network Authority are normally kept.
            (3) Access to first responder network authority books and 
        documents.--
                    (A) In general.--For purposes of an audit conducted 
                under paragraph (1), the representatives of the 
                independent auditor shall--
                          (i) have access to all books, accounts, 
                      records, reports, files, and all other papers, 
                      things, or property belonging to or in use by the 
                      First Responder Network

[[Page 126 STAT. 217]]

                      Authority that pertain to the financial 
                      transactions of the First Responder Network 
                      Authority and are necessary to facilitate the 
                      audit; and
                          (ii) be afforded full facilities for verifying 
                      transactions with the balances or securities held 
                      by depositories, fiscal agents, and custodians.
                    (B) Requirement.--All books, accounts, records, 
                reports, files, papers, and property of the First 
                Responder Network Authority shall remain in the 
                possession and custody of the First Responder Network 
                Authority.

    (b) Report.--
            (1) In general.--The independent auditor selected to conduct 
        an audit under this section shall submit a report of each audit 
        conducted under subsection (a) to--
                    (A) the appropriate committees of Congress;
                    (B) the President; and
                    (C) the First Responder Network Authority.
            (2) Contents.--Each report submitted under paragraph (1) 
        shall contain--
                    (A) such comments and information as the independent 
                auditor determines necessary to inform Congress of the 
                financial operations and condition of the First 
                Responder Network Authority;
                    (B) any recommendations of the independent auditor 
                relating to the financial operations and condition of 
                the First Responder Network Authority; and
                    (C) a description of any program, expenditure, or 
                other financial transaction or undertaking of the First 
                Responder Network Authority that was observed during the 
                course of the audit, which, in the opinion of the 
                independent auditor, has been carried on or made without 
                the authority of law.
SEC. 6210. <<NOTE: 47 USC 1430.>>  ANNUAL REPORT TO CONGRESS.

    (a) In General.--Not later than 1 year after the date of enactment 
of this Act, and each year thereafter, the First Responder Network 
Authority shall submit an annual report covering the preceding fiscal 
year to the appropriate committees of Congress.
    (b) Required Content.--The report required under subsection (a) 
shall include--
            (1) a comprehensive and detailed report of the operations, 
        activities, financial condition, and accomplishments of the 
        First Responder Network Authority under this section; and
            (2) such recommendations or proposals for legislative or 
        administrative action as the First Responder Network Authority 
        deems appropriate.

    (c) Availability to Testify.--The members of the Board and employees 
of the First Responder Network Authority shall be available to testify 
before the appropriate committees of the Congress with respect to--
            (1) the report required under subsection (a);
            (2) the report of any audit conducted under section 6210; or
            (3) any other matter which such committees may determine 
        appropriate.

[[Page 126 STAT. 218]]

SEC. 6211. <<NOTE: 47 USC 1431.>>  PUBLIC SAFETY ROAMING AND 
                          PRIORITY ACCESS.

    The Commission may adopt rules, if necessary in the public interest, 
to improve the ability of public safety networks to roam onto commercial 
networks and to gain priority access to commercial networks in an 
emergency if--
            (1) the public safety entity equipment is technically 
        compatible with the commercial network;
            (2) the commercial network is reasonably compensated; and
            (3) such access does not preempt or otherwise terminate or 
        degrade all existing voice conversations or data sessions.
SEC. 6212. <<NOTE: 47 USC 1432.>>  PROHIBITION ON DIRECT OFFERING 
                          OF COMMERCIAL TELECOMMUNICATIONS SERVICE 
                          DIRECTLY TO CONSUMERS.

    (a) In General.--The First Responder Network Authority shall not 
offer, provide, or market commercial telecommunications or information 
services directly to consumers.
    (b) Rule of Construction.--Nothing in this section shall be 
construed to prohibit the First Responder Network Authority and a 
secondary user from entering into a covered leasing agreement pursuant 
to section 6208(a)(2)(B). Nothing in this section shall be construed to 
limit the First Responder Network Authority from collecting lease fees 
related to network equipment and infrastructure pursuant to section 
6208(a)(3).
SEC. 6213. <<NOTE: 47 USC 1433.>>  PROVISION OF TECHNICAL 
                          ASSISTANCE.

    The Commission may provide technical assistance to the First 
Responder Network Authority and may take any action necessary to assist 
the First Responder Network Authority in effectuating its duties and 
responsibilities under this subtitle.

                  Subtitle C--Public Safety Commitments

SEC. 6301. <<NOTE: 47 USC 1441.>>  STATE AND LOCAL IMPLEMENTATION 
                          FUND.

    (a) Establishment.--There is established in the Treasury of the 
United States a fund to be known as the State and Local Implementation 
Fund.
    (b) Amounts Available for State and Local Implementation Grant 
Program.--Any amounts borrowed under subsection (c)(1) and any amounts 
in the State and Local Implementation Fund that are not necessary to 
reimburse the general fund of the Treasury for such borrowed amounts 
shall be available to the Assistant Secretary to implement section 6302.
    (c) Borrowing Authority.--
            (1) In general.--Prior to the end of fiscal year 2022, the 
        Assistant Secretary may borrow from the general fund of the 
        Treasury such sums as may be necessary, but not to exceed 
        $135,000,000, to implement section 6302.
            (2) Reimbursement.--The Assistant Secretary shall reimburse 
        the general fund of the Treasury, without interest, for any 
        amounts borrowed under paragraph (1) as funds are deposited into 
        the State and Local Implementation Fund.

    (d) Transfer of Unused Funds.--If there is a balance remaining in 
the State and Local Implementation Fund on September 30, 2022, the 
Secretary of the Treasury shall transfer such balance to the general 
fund of the Treasury, where such balance shall be dedicated for the sole 
purpose of deficit reduction.

[[Page 126 STAT. 219]]

SEC. 6302. <<NOTE: 47 USC 1442.>>  STATE AND LOCAL IMPLEMENTATION.

    (a) Establishment of State and Local Implementation Grant Program.--
The Assistant Secretary, in consultation with the First Responder 
Network Authority, shall take such action as is necessary to establish a 
grant program to make grants to States to assist State, regional, 
tribal, and local jurisdictions to identify, plan, and implement the 
most efficient and effective way for such jurisdictions to utilize and 
integrate the infrastructure, equipment, and other architecture 
associated with the nationwide public safety broadband network to 
satisfy the wireless communications and data services needs of that 
jurisdiction, including with regards to coverage, siting, and other 
needs.
    (b) Matching Requirements; Federal Share.--
            (1) In general.--The Federal share of the cost of any 
        activity carried out using a grant under this section may not 
        exceed 80 percent of the eligible costs of carrying out that 
        activity, as determined by the Assistant Secretary, in 
        consultation with the First Responder Network Authority.
            (2) Waiver.--The Assistant Secretary may waive, in whole or 
        in part, the requirements of paragraph (1) for good cause shown 
        if the Assistant Secretary determines that such a waiver is in 
        the public interest.

    (c) <<NOTE: Deadline.>>  Programmatic Requirements.--Not later than 
6 months after the date of enactment of this Act, the Assistant 
Secretary, in consultation with the First Responder Network Authority, 
shall establish requirements relating to the grant program to be carried 
out under this section, including the following:
            (1) Defining eligible costs for purposes of subsection 
        (b)(1).
            (2) Determining the scope of eligible activities for grant 
        funding under this section.
            (3) Prioritizing grants for activities that ensure coverage 
        in rural as well as urban areas.

    (d) Certification and Designation of Officer or Governmental Body.--
In carrying out the grant program established under this section, the 
Assistant Secretary shall require each State to certify in its 
application for grant funds that the State has designated a single 
officer or governmental body to serve as the coordinator of 
implementation of the grant funds.
    (e) State Network.--
            (1) Notice.--Upon the completion of the request for proposal 
        process conducted by the First Responder Network Authority for 
        the construction, operation, maintenance, and improvement of the 
        nationwide public safety broadband network, the First Responder 
        Network Authority shall provide to the Governor of each State, 
        or his designee--
                    (A) notice of the completion of the request for 
                proposal process;
                    (B) details of the proposed plan for buildout of the 
                nationwide, interoperable broadband network in such 
                State; and
                    (C) the funding level for the State as determined by 
                the NTIA.
            (2) <<NOTE: Deadline.>>  State decision.--Not later than 90 
        days after the date on which the Governor of a State receives 
        notice under paragraph (1), the Governor shall choose whether 
        to--

[[Page 126 STAT. 220]]

                    (A) participate in the deployment of the nationwide, 
                interoperable broadband network as proposed by the First 
                Responder Network Authority; or
                    (B) conduct its own deployment of a radio access 
                network in such State.
            (3) Process.--
                    (A) <<NOTE: Notification.>>  In general.--Upon 
                making a decision to opt-out under paragraph (2)(B), the 
                Governor shall notify the First Responder Network 
                Authority, the NTIA, and the Commission of such 
                decision.
                    (B) <<NOTE: Deadline.>>  State request for 
                proposals.--Not later than 180 days after the date on 
                which a Governor provides notice under subparagraph (A), 
                the Governor shall develop and complete requests for 
                proposals for the construction, maintenance, and 
                operation of the radio access network within the State.
                    (C) Submission and approval of alternative plan.--
                          (i) In general.--The State shall submit an 
                      alternative plan for the construction, 
                      maintenance, operation, and improvements of the 
                      radio access network within the State to the 
                      Commission, and such plan shall demonstrate--
                                    (I) that the State will be in 
                                compliance with the minimum technical 
                                interoperability requirements developed 
                                under section 6203; and
                                    (II) interoperability with the 
                                nationwide public safety broadband 
                                network.
                          (ii) Commission approval or disapproval.--Upon 
                      submission of a State plan under clause (i), the 
                      Commission shall either approve or disapprove the 
                      plan.
                          (iii) Approval.--If the Commission approves a 
                      plan under this subparagraph, the State--
                                    (I) may apply to the NTIA for a 
                                grant to construct the radio access 
                                network within the State that includes 
                                the showing described in subparagraph 
                                (D); and
                                    (II) shall apply to the NTIA to 
                                lease spectrum capacity from the First 
                                Responder Network Authority.
                          (iv) Disapproval.--If the Commission 
                      disapproves a plan under this subparagraph, the 
                      construction, maintenance, operation, and 
                      improvements of the network within the State shall 
                      proceed in accordance with the plan proposed by 
                      the First Responder Network Authority.
                    (D) Funding requirements.--In order to obtain grant 
                funds and spectrum capacity leasing rights under 
                subparagraph (C)(iii), a State shall demonstrate--
                          (i) that the State has--
                                    (I) the technical capabilities to 
                                operate, and the funding to support, the 
                                State radio access network;
                                    (II) has the ability to maintain 
                                ongoing interoperability with the 
                                nationwide public safety broadband 
                                network; and

[[Page 126 STAT. 221]]

                                    (III) the ability to complete the 
                                project within specified comparable 
                                timelines specific to the State;
                          (ii) the cost-effectiveness of the State plan 
                      submitted under subparagraph (C)(i); and
                          (iii) comparable security, coverage, and 
                      quality of service to that of the nationwide 
                      public safety broadband network.

    (f) User Fees.--If a State chooses to build its own radio access 
network, the State shall pay any user fees associated with State use of 
elements of the core network.
    (g) Prohibition.--
            (1) In general.--A State that chooses to build its own radio 
        access network shall not provide commercial service to consumers 
        or offer wholesale leasing capacity of the network within the 
        State except directly through public-private partnerships for 
        construction, maintenance, operation, and improvement of the 
        network within the State.
            (2) Rule of construction.--Nothing in this subsection shall 
        be construed to prohibit the State and a secondary user from 
        entering into a covered leasing agreement. Any revenue gained by 
        the State from such a leasing agreement shall be used only for 
        constructing, maintaining, operating, or improving the radio 
        access network of the State.

    (h) Judicial Review.--
            (1) In general.--The United States District Court for the 
        District of Columbia shall have exclusive jurisdiction to review 
        a decision of the Commission made under subsection 
        (e)(3)(C)(iv).
            (2) Standard of review.--The court shall affirm the decision 
        of the Commission unless--
                    (A) the decision was procured by corruption, fraud, 
                or undue means;
                    (B) there was actual partiality or corruption in the 
                Commission; or
                    (C) the Commission was guilty of misconduct in 
                refusing to hear evidence pertinent and material to the 
                decision or of any other misbehavior by which the rights 
                of any party have been prejudiced.
SEC. 6303. <<NOTE: 47 USC 1443.>>  PUBLIC SAFETY WIRELESS 
                          COMMUNICATIONS RESEARCH AND DEVELOPMENT.

    (a) NIST Directed Research and Development Program.--From amounts 
made available from the Public Safety Trust Fund, the Director of NIST, 
in consultation with the Commission, the Secretary of Homeland Security, 
and the National Institute of Justice of the Department of Justice, as 
appropriate, shall conduct research and assist with the development of 
standards, technologies, and applications to advance wireless public 
safety communications.
    (b) Required Activities.--In carrying out the requirement under 
subsection (a), the Director of NIST, in consultation with the First 
Responder Network Authority and the public safety advisory committee 
established under section 6205(a), shall--
            (1) document public safety wireless communications technical 
        requirements;

[[Page 126 STAT. 222]]

            (2) accelerate the development of the capability for 
        communications between currently deployed public safety 
        narrowband systems and the nationwide public safety broadband 
        network;
            (3) establish a research plan, and direct research, that 
        addresses the wireless communications needs of public safety 
        entities beyond what can be provided by the current generation 
        of broadband technology;
            (4) accelerate the development of mission critical voice, 
        including device-to-device ``talkaround'' capability over 
        broadband networks, public safety prioritization, authentication 
        capabilities, and standard application programing interfaces for 
        the nationwide public safety broadband network, if necessary and 
        practical;
            (5) accelerate the development of communications technology 
        and equipment that can facilitate the eventual migration of 
        public safety narrowband communications to the nationwide public 
        safety broadband network; and
            (6) convene working groups of relevant government and 
        commercial parties to achieve the requirements in paragraphs (1) 
        through (5).

                 Subtitle D--Spectrum Auction Authority

SEC. 6401. <<NOTE: 47 USC 1451.>>  DEADLINES FOR AUCTION OF 
                          CERTAIN SPECTRUM.

    (a) Clearing Certain Federal Spectrum.--
            (1) <<NOTE: President.>>  In general.--The President shall--
                    (A) not later than 3 years after the date of the 
                enactment of this Act, begin the process of withdrawing 
                or modifying the assignment to a Federal Government 
                station of the electromagnetic spectrum described in 
                paragraph (2); and
                    (B) <<NOTE: Notification.>>  not later than 30 days 
                after completing the withdrawal or modification, notify 
                the Commission that the withdrawal or modification is 
                complete.
            (2) Spectrum described.--The electromagnetic spectrum 
        described in this paragraph is the 15 megahertz of spectrum 
        between 1675 megahertz and 1710 megahertz identified under 
        paragraph (3).
            (3) <<NOTE: Reports.>>  Identification by secretary of 
        commerce.--Not later than 1 year after the date of the enactment 
        of this Act, the Secretary of Commerce shall submit to the 
        President a report identifying 15 megahertz of spectrum between 
        1675 megahertz and 1710 megahertz for reallocation from Federal 
        use to non-Federal use.

    (b) Reallocation and Auction.--
            (1) In general.--Notwithstanding paragraph (15)(A) of 
        section 309(j) of the Communications Act of 1934 (47 U.S.C. 
        309(j)), not later than 3 years after the date of the enactment 
        of this Act, the Commission shall, except as provided in 
        paragraph (4)--
                    (A) allocate the spectrum described in paragraph (2) 
                for commercial use; and
                    (B) through a system of competitive bidding under 
                such section, grant new initial licenses for the use of 
                such spectrum, subject to flexible-use service rules.

[[Page 126 STAT. 223]]

            (2) Spectrum described.--The spectrum described in this 
        paragraph is the following:
                    (A) The frequencies between 1915 megahertz and 1920 
                megahertz.
                    (B) The frequencies between 1995 megahertz and 2000 
                megahertz.
                    (C) The frequencies described in subsection (a)(2).
                    (D) The frequencies between 2155 megahertz and 2180 
                megahertz.
                    (E) Fifteen megahertz of contiguous spectrum to be 
                identified by the Commission.
            (3) Proceeds to cover 110 percent of federal relocation or 
        sharing costs.--Nothing in paragraph (1) shall be construed to 
        relieve the Commission from the requirements of section 
        309(j)(16)(B) of the Communications Act of 1934 (47 U.S.C. 
        309(j)(16)(B)).
            (4) Determination by commission.--If the Commission 
        determines that the band of frequencies described in paragraph 
        (2)(A) or the band of frequencies described in paragraph (2)(B) 
        cannot be used without causing harmful interference to 
        commercial mobile service licensees in the frequencies between 
        1930 megahertz and 1995 megahertz, the Commission may not--
                    (A) allocate such band for commercial use under 
                paragraph (1)(A); or
                    (B) grant licenses under paragraph (1)(B) for the 
                use of such band.

    (c) Auction Proceeds.--Section 309(j)(8) of the Communications Act 
of 1934 (47 U.S.C. 309(j)(8)) is amended--
            (1) in subparagraph (A), by striking ``(D), and (E),'' and 
        inserting ``(D), (E), (F), and (G),'';
            (2) in subparagraph (C)(i), by striking ``subparagraph 
        (E)(ii)'' and inserting ``subparagraphs (D)(ii), (E)(ii), (F), 
        and (G)'';
            (3) in subparagraph (D)--
                    (A) by striking the heading and inserting ``Proceeds 
                from reallocated federal spectrum.--'';
                    (B) by striking ``Cash'' and inserting the 
                following:
                          ``(i) In general.--Except as provided in 
                      clause (ii), cash''; and
                    (C) by adding at the end the following:
                          ``(ii) Certain other proceeds.--
                      Notwithstanding subparagraph (A) and except as 
                      provided in subparagraph (B), in the case of 
                      proceeds (including deposits and upfront payments 
                      from successful bidders) attributable to the 
                      auction of eligible frequencies described in 
                      paragraph (2) of section 113(g) of the National 
                      Telecommunications and Information Administration 
                      Organization Act that are required to be auctioned 
                      by section 6401(b)(1)(B) of the Middle Class Tax 
                      Relief and Job Creation Act of 2012, such portion 
                      of such proceeds as is necessary to cover the 
                      relocation or sharing costs (as defined in 
                      paragraph (3) of such section 113(g)) of Federal 
                      entities relocated from such eligible frequencies 
                      shall be deposited in the Spectrum Relocation 
                      Fund. The remainder of such proceeds shall

[[Page 126 STAT. 224]]

                      be deposited in the Public Safety Trust Fund 
                      established by section 6413(a)(1) of the Middle 
                      Class Tax Relief and Job Creation Act of 2012.''; 
                      and
            (4) by adding at the end the following:
                    ``(F) Certain proceeds designated for public safety 
                trust fund.--Notwithstanding subparagraph (A) and except 
                as provided in subparagraphs (B) and (D)(ii), the 
                proceeds (including deposits and upfront payments from 
                successful bidders) from the use of a system of 
                competitive bidding under this subsection pursuant to 
                section 6401(b)(1)(B) of the Middle Class Tax Relief and 
                Job Creation Act of 2012 shall be deposited in the 
                Public Safety Trust Fund established by section 
                6413(a)(1) of such Act.''.
SEC. 6402. GENERAL AUTHORITY FOR INCENTIVE AUCTIONS.

    Section 309(j)(8) of the Communications Act of 1934, as amended by 
section 6401(c), is further amended by adding at the end the following:
                    ``(G) Incentive auctions.--
                          ``(i) In general.--Notwithstanding 
                      subparagraph (A) and except as provided in 
                      subparagraph (B), the Commission may encourage a 
                      licensee to relinquish voluntarily some or all of 
                      its licensed spectrum usage rights in order to 
                      permit the assignment of new initial licenses 
                      subject to flexible-use service rules by sharing 
                      with such licensee a portion, based on the value 
                      of the relinquished rights as determined in the 
                      reverse auction required by clause (ii)(I), of the 
                      proceeds (including deposits and upfront payments 
                      from successful bidders) from the use of a 
                      competitive bidding system under this subsection.
                          ``(ii) Limitations.--The Commission may not 
                      enter into an agreement for a licensee to 
                      relinquish spectrum usage rights in exchange for a 
                      share of auction proceeds under clause (i) 
                      unless--
                                    ``(I) the Commission conducts a 
                                reverse auction to determine the amount 
                                of compensation that licensees would 
                                accept in return for voluntarily 
                                relinquishing spectrum usage rights; and
                                    ``(II) at least two competing 
                                licensees participate in the reverse 
                                auction.
                          ``(iii) Treatment of revenues.--
                      Notwithstanding subparagraph (A) and except as 
                      provided in subparagraph (B), the proceeds 
                      (including deposits and upfront payments from 
                      successful bidders) from any auction, prior to the 
                      end of fiscal year 2022, of spectrum usage rights 
                      made available under clause (i) that are not 
                      shared with licensees under such clause shall be 
                      deposited as follows:
                                    ``(I) $1,750,000,000 of the proceeds 
                                from the incentive auction of broadcast 
                                television spectrum required by section 
                                6403 of the Middle Class Tax Relief and 
                                Job Creation Act of 2012 shall be 
                                deposited in the TV Broadcaster 
                                Relocation Fund established by 
                                subsection (d)(1) of such section.
                                    ``(II) All other proceeds shall be 
                                deposited--

[[Page 126 STAT. 225]]

                                            ``(aa) prior to the end of 
                                        fiscal year 2022, in the Public 
                                        Safety Trust Fund established by 
                                        section 6413(a)(1) of such Act; 
                                        and
                                            ``(bb) after the end of 
                                        fiscal year 2022, in the general 
                                        fund of the Treasury, where such 
                                        proceeds shall be dedicated for 
                                        the sole purpose of deficit 
                                        reduction.
                          ``(iv) Congressional notification.--At least 3 
                      months before any incentive auction conducted 
                      under this subparagraph, the Chairman of the 
                      Commission, in consultation with the Director of 
                      the Office of Management and Budget, shall notify 
                      the appropriate committees of Congress of the 
                      methodology for calculating the amounts that will 
                      be shared with licensees under clause (i).
                          ``(v) Definition.--In this subparagraph, the 
                      term `appropriate committees of Congress' means--
                                    ``(I) the Committee on Commerce, 
                                Science, and Transportation of the 
                                Senate;
                                    ``(II) the Committee on 
                                Appropriations of the Senate;
                                    ``(III) the Committee on Energy and 
                                Commerce of the House of 
                                Representatives; and
                                    ``(IV) the Committee on 
                                Appropriations of the House of 
                                Representatives.''.
SEC. 6403. <<NOTE: 47 USC 1452.>>  SPECIAL REQUIREMENTS FOR 
                          INCENTIVE AUCTION OF BROADCAST TV 
                          SPECTRUM.

    (a) Reverse Auction to Identify Incentive Amount.--
            (1) <<NOTE: Determination.>>  In general.--The Commission 
        shall conduct a reverse auction to determine the amount of 
        compensation that each broadcast television licensee would 
        accept in return for voluntarily relinquishing some or all of 
        its broadcast television spectrum usage rights in order to make 
        spectrum available for assignment through a system of 
        competitive bidding under subparagraph (G) of section 309(j)(8) 
        of the Communications Act of 1934, as added by section 6402.
            (2) Eligible relinquishments.--A relinquishment of usage 
        rights for purposes of paragraph (1) shall include the 
        following:
                    (A) Relinquishing all usage rights with respect to a 
                particular television channel without receiving in 
                return any usage rights with respect to another 
                television channel.
                    (B) Relinquishing all usage rights with respect to 
                an ultra high frequency television channel in return for 
                receiving usage rights with respect to a very high 
                frequency television channel.
                    (C) Relinquishing usage rights in order to share a 
                television channel with another licensee.
            (3) Confidentiality.--The Commission shall take all 
        reasonable steps necessary to protect the confidentiality of 
        Commission-held data of a licensee participating in the reverse 
        auction under paragraph (1), including withholding the identity 
        of such licensee until the reassignments and reallocations (if 
        any) under subsection (b)(1)(B) become effective, as described 
        in subsection (f)(2).

[[Page 126 STAT. 226]]

            (4) Protection of carriage rights of licensees sharing a 
        channel.--A broadcast television station that voluntarily 
        relinquishes spectrum usage rights under this subsection in 
        order to share a television channel and that possessed carriage 
        rights under section 338, 614, or 615 of the Communications Act 
        of 1934 (47 U.S.C. 338; 534; 535) on November 30, 2010, shall 
        have, at its shared location, the carriage rights under such 
        section that would apply to such station at such location if it 
        were not sharing a channel.

    (b) Reorganization of Broadcast TV Spectrum.--
            (1) In general.--For purposes of making available spectrum 
        to carry out the forward auction under subsection (c)(1), the 
        Commission--
                    (A) shall evaluate the broadcast television spectrum 
                (including spectrum made available through the reverse 
                auction under subsection (a)(1)); and
                    (B) may, subject to international coordination along 
                the border with Mexico and Canada--
                          (i) make such reassignments of television 
                      channels as the Commission considers appropriate; 
                      and
                          (ii) reallocate such portions of such spectrum 
                      as the Commission determines are available for 
                      reallocation.
            (2) Factors for consideration.--In making any reassignments 
        or reallocations under paragraph (1)(B), the Commission shall 
        make all reasonable efforts to preserve, as of the date of the 
        enactment of this Act, the coverage area and population served 
        of each broadcast television licensee, as determined using the 
        methodology described in OET Bulletin 69 of the Office of 
        Engineering and Technology of the Commission.
            (3) No involuntary relocation from uhf to vhf.--In making 
        any reassignments under paragraph (1)(B)(i), the Commission may 
        not involuntarily reassign a broadcast television licensee--
                    (A) from an ultra high frequency television channel 
                to a very high frequency television channel; or
                    (B) from a television channel between the 
                frequencies from 174 megahertz to 216 megahertz to a 
                television channel between the frequencies from 54 
                megahertz to 88 megahertz.
            (4) Payment of relocation costs.--
                    (A) In general.--Except as provided in subparagraph 
                (B), from amounts made available under subsection 
                (d)(2), the Commission shall reimburse costs reasonably 
                incurred by--
                          (i) a broadcast television licensee that was 
                      reassigned under paragraph (1)(B)(i) from one 
                      ultra high frequency television channel to a 
                      different ultra high frequency television channel, 
                      from one very high frequency television channel to 
                      a different very high frequency television 
                      channel, or, in accordance with subsection 
                      (g)(1)(B), from a very high frequency television 
                      channel to an ultra high frequency television 
                      channel, in order for the licensee to relocate its 
                      television service from one channel to the other;

[[Page 126 STAT. 227]]

                          (ii) a multichannel video programming 
                      distributor in order to continue to carry the 
                      signal of a broadcast television licensee that--
                                    (I) is described in clause (i);
                                    (II) voluntarily relinquishes 
                                spectrum usage rights under subsection 
                                (a) with respect to an ultra high 
                                frequency television channel in return 
                                for receiving usage rights with respect 
                                to a very high frequency television 
                                channel; or
                                    (III) voluntarily relinquishes 
                                spectrum usage rights under subsection 
                                (a) to share a television channel with 
                                another licensee; or
                          (iii) a channel 37 incumbent user, in order to 
                      relocate to other suitable spectrum, provided that 
                      all such users can be relocated and that the total 
                      relocation costs of such users do not exceed 
                      $300,000,000. For the purpose of this section, the 
                      spectrum made available through relocation of 
                      channel 37 incumbent users shall be deemed as 
                      spectrum reclaimed through a reverse auction under 
                      section 6403(a).
                    (B) <<NOTE: Waiver.>>  Regulatory relief.--In lieu 
                of reimbursement for relocation costs under subparagraph 
                (A), a broadcast television licensee may accept, and the 
                Commission may grant as it considers appropriate, a 
                waiver of the service rules of the Commission to permit 
                the licensee, subject to interference protections, to 
                make flexible use of the spectrum assigned to the 
                licensee to provide services other than broadcast 
                television services. Such waiver shall only remain in 
                effect while the licensee provides at least 1 broadcast 
                television program stream on such spectrum at no charge 
                to the public.
                    (C) Limitation.--The Commission may not make 
                reimbursements under subparagraph (A) for lost revenues.
                    (D) Deadline.--The Commission shall make all 
                reimbursements required by subparagraph (A) not later 
                than the date that is 3 years after the completion of 
                the forward auction under subsection (c)(1).
            (5) Low-power television usage rights.--Nothing in this 
        subsection shall be construed to alter the spectrum usage rights 
        of low-power television stations.

    (c) Forward Auction.--
            (1) Auction required.--The Commission shall conduct a 
        forward auction in which--
                    (A) the Commission assigns licenses for the use of 
                the spectrum that the Commission reallocates under 
                subsection (b)(1)(B)(ii); and
                    (B) the amount of the proceeds that the Commission 
                shares under clause (i) of section 309(j)(8)(G) of the 
                Communications Act of 1934 with each licensee whose bid 
                the Commission accepts in the reverse auction under 
                subsection (a)(1) is not less than the amount of such 
                bid.
            (2) Minimum proceeds.--
                    (A) In general.--If the amount of the proceeds from 
                the forward auction under paragraph (1) is not greater 
                than the sum described in subparagraph (B), no licenses 
                shall be assigned through such forward auction, no 
                reassignments or reallocations under subsection 
                (b)(1)(B)

[[Page 126 STAT. 228]]

                shall become effective, and the Commission may not 
                revoke any spectrum usage rights by reason of a bid that 
                the Commission accepts in the reverse auction under 
                subsection (a)(1).
                    (B) Sum described.--The sum described in this 
                subparagraph is the sum of--
                          (i) the total amount of compensation that the 
                      Commission must pay successful bidders in the 
                      reverse auction under subsection (a)(1);
                          (ii) the costs of conducting such forward 
                      auction that the salaries and expenses account of 
                      the Commission is required to retain under section 
                      309(j)(8)(B) of the Communications Act of 1934 (47 
                      U.S.C. 309(j)(8)(B)); and
                          (iii) the estimated costs for which the 
                      Commission is required to make reimbursements 
                      under subsection (b)(4)(A).
                    (C) Administrative costs.--The amount of the 
                proceeds from the forward auction under paragraph (1) 
                that the salaries and expenses account of the Commission 
                is required to retain under section 309(j)(8)(B) of the 
                Communications Act of 1934 (47 U.S.C. 309(j)(8)(B)) 
                shall be sufficient to cover the costs incurred by the 
                Commission in conducting the reverse auction under 
                subsection (a)(1), conducting the evaluation of the 
                broadcast television spectrum under subparagraph (A) of 
                subsection (b)(1), and making any reassignments or 
                reallocations under subparagraph (B) of such subsection, 
                in addition to the costs incurred by the Commission in 
                conducting such forward auction.
            (3) Factor for consideration.--In conducting the forward 
        auction under paragraph (1), the Commission shall consider 
        assigning licenses that cover geographic areas of a variety of 
        different sizes.

    (d) TV Broadcaster Relocation Fund.--
            (1) Establishment.--There is established in the Treasury of 
        the United States a fund to be known as the TV Broadcaster 
        Relocation Fund.
            (2) Payment of relocation costs.--Any amounts borrowed under 
        paragraph (3)(A) and any amounts in the TV Broadcaster 
        Relocation Fund that are not necessary for reimbursement of the 
        general fund of the Treasury for such borrowed amounts shall be 
        available to the Commission to make the payments required by 
        subsection (b)(4)(A).
            (3) Borrowing authority.--
                    (A) <<NOTE: Effective date. Termination date.>>  In 
                general.--Beginning on the date when any reassignments 
                or reallocations under subsection (b)(1)(B) become 
                effective, as provided in subsection (f)(2), and ending 
                when $1,000,000,000 has been deposited in the TV 
                Broadcaster Relocation Fund, the Commission may borrow 
                from the Treasury of the United States an amount not to 
                exceed $1,000,000,000 to use toward the payments 
                required by subsection (b)(4)(A).
                    (B) Reimbursement.--The Commission shall reimburse 
                the general fund of the Treasury, without interest, for 
                any amounts borrowed under subparagraph (A) as funds are 
                deposited into the TV Broadcaster Relocation Fund.

[[Page 126 STAT. 229]]

            (4) Transfer of unused funds.--If any amounts remain in the 
        TV Broadcaster Relocation Fund after the date that is 3 years 
        after the completion of the forward auction under subsection 
        (c)(1), the Secretary of the Treasury shall--
                    (A) prior to the end of fiscal year 2022, transfer 
                such amounts to the Public Safety Trust Fund established 
                by section 6413(a)(1); and
                    (B) after the end of fiscal year 2022, transfer such 
                amounts to the general fund of the Treasury, where such 
                amounts shall be dedicated for the sole purpose of 
                deficit reduction.

    (e) Numerical Limitation on Auctions and Reorganization.--The 
Commission may not complete more than one reverse auction under 
subsection (a)(1) or more than one reorganization of the broadcast 
television spectrum under subsection (b).
    (f) Timing.--
            (1) Contemporaneous auctions and reorganization permitted.--
        The Commission may conduct the reverse auction under subsection 
        (a)(1), any reassignments or reallocations under subsection 
        (b)(1)(B), and the forward auction under subsection (c)(1) on a 
        contemporaneous basis.
            (2) Effectiveness of reassignments and reallocations.--
        Notwithstanding paragraph (1), no reassignments or reallocations 
        under subsection (b)(1)(B) shall become effective until the 
        completion of the reverse auction under subsection (a)(1) and 
        the forward auction under subsection (c)(1), and, to the extent 
        practicable, all such reassignments and reallocations shall 
        become effective simultaneously.
            (3) Deadline.--The Commission may not conduct the reverse 
        auction under subsection (a)(1) or the forward auction under 
        subsection (c)(1) after the end of fiscal year 2022.
            (4) Limit on discretion regarding auction timing.--Section 
        309(j)(15)(A) of the Communications Act of 1934 (47 U.S.C. 
        309(j)(15)(A)) shall not apply in the case of an auction 
        conducted under this section.

    (g) Limitation on Reorganization Authority.--
            (1) In general.--During the period described in paragraph 
        (2), the Commission may not--
                    (A) involuntarily modify the spectrum usage rights 
                of a broadcast television licensee or reassign such a 
                licensee to another television channel except--
                          (i) in accordance with this section; or
                          (ii) in the case of a violation by such 
                      licensee of the terms of its license or a specific 
                      provision of a statute administered by the 
                      Commission, or a regulation of the Commission 
                      promulgated under any such provision; or
                    (B) reassign a broadcast television licensee from a 
                very high frequency television channel to an ultra high 
                frequency television channel, unless--
                          (i) such a reassignment will not decrease the 
                      total amount of ultra high frequency spectrum made 
                      available for reallocation under this section; or
                          (ii) a request from such licensee for the 
                      reassignment was pending at the Commission on May 
                      31, 2011.

[[Page 126 STAT. 230]]

            (2) Period described.--The period described in this 
        paragraph is the period beginning on the date of the enactment 
        of this Act and ending on the earliest of--
                    (A) the first date when the reverse auction under 
                subsection (a)(1), the reassignments and reallocations 
                (if any) under subsection (b)(1)(B), and the forward 
                auction under subsection (c)(1) have been completed;
                    (B) the date of a determination by the Commission 
                that the amount of the proceeds from the forward auction 
                under subsection (c)(1) is not greater than the sum 
                described in subsection (c)(2)(B); or
                    (C) September 30, 2022.

    (h) Protest Right Inapplicable.--The right of a licensee to protest 
a proposed order of modification of its license under section 316 of the 
Communications Act of 1934 (47 U.S.C. 316) shall not apply in the case 
of a modification made under this section.
    (i) Commission Authority.--Nothing in subsection (b) shall be 
construed to--
            (1) expand or contract the authority of the Commission, 
        except as otherwise expressly provided; or
            (2) prevent the implementation of the Commission's ``White 
        Spaces'' Second Report and Order and Memorandum Opinion and 
        Order (FCC 08-260, adopted November 4, 2008) in the spectrum 
        that remains allocated for broadcast television use after the 
        reorganization required by such subsection.
SEC. 6404. CERTAIN CONDITIONS ON AUCTION PARTICIPATION PROHIBITED.

    Section 309(j) of the Communications Act of 1934 (47 U.S.C. 309(j)) 
is amended by adding at the end the following new paragraph:
            ``(17) Certain conditions on auction participation 
        prohibited.--
                    ``(A) In general.--Notwithstanding any other 
                provision of law, the Commission may not prevent a 
                person from participating in a system of competitive 
                bidding under this subsection if such person--
                          ``(i) complies with all the auction procedures 
                      and other requirements to protect the auction 
                      process established by the Commission; and
                          ``(ii) either--
                                    ``(I) meets the technical, 
                                financial, character, and citizenship 
                                qualifications that the Commission may 
                                require under section 303(l)(1), 308(b), 
                                or 310 to hold a license; or
                                    ``(II) would meet such license 
                                qualifications by means approved by the 
                                Commission prior to the grant of the 
                                license.
                    ``(B) Clarification of authority.--Nothing in 
                subparagraph (A) affects any authority the Commission 
                has to adopt and enforce rules of general applicability, 
                including rules concerning spectrum aggregation that 
                promote competition.''.
SEC. 6405. EXTENSION OF AUCTION AUTHORITY.

    Section 309(j)(11) of the Communications Act of 1934 (47 U.S.C. 
309(j)(11)) is amended by striking ``2012'' and inserting ``2022''.

[[Page 126 STAT. 231]]

SEC. 6406. <<NOTE: 47 USC 1453.>>  UNLICENSED USE IN THE 5 GHZ 
                          BAND.

    (a) Modification of Commission Regulations to Allow Certain 
Unlicensed Use.--
            (1) <<NOTE: Deadline.>>  In general.--Subject to paragraph 
        (2), not later than 1 year after the date of the enactment of 
        this Act, the Commission shall begin a proceeding to modify part 
        15 of title 47, Code of Federal Regulations, to allow unlicensed 
        U-NII devices to operate in the 5350-5470 MHz band.
            (2) Required determinations.--The Commission may make the 
        modification described in paragraph (1) only if the Commission, 
        in consultation with the Assistant Secretary, determines that--
                    (A) licensed users will be protected by technical 
                solutions, including use of existing, modified, or new 
                spectrum-sharing technologies and solutions, such as 
                dynamic frequency selection; and
                    (B) the primary mission of Federal spectrum users in 
                the 5350-5470 MHz band will not be compromised by the 
                introduction of unlicensed devices.

    (b) Study by NTIA.--
            (1) In general.--The Assistant Secretary, in consultation 
        with the Department of Defense and other impacted agencies, 
        shall conduct a study evaluating known and proposed spectrum-
        sharing technologies and the risk to Federal users if unlicensed 
        U-NII devices were allowed to operate in the 5350-5470 MHz band 
        and in the 5850-5925 MHz band.
            (2) <<NOTE: Reports. Deadlines.>>  Submission.--The 
        Assistant Secretary shall submit to the Commission and the 
        Committee on Energy and Commerce of the House of Representatives 
        and the Committee on Commerce, Science, and Transportation of 
        the Senate--
                    (A) not later than 8 months after the date of the 
                enactment of this Act, a report on the portion of the 
                study required by paragraph (1) with respect to the 
                5350-5470 MHz band; and
                    (B) not later than 18 months after the date of the 
                enactment of this Act, a report on the portion of the 
                study required by paragraph (1) with respect to the 
                5850-5925 MHz band.

    (c) Definitions.--In this section:
            (1) 5350-5470 mhz band.--The term ``5350-5470 MHz band'' 
        means the portion of the electromagnetic spectrum between the 
        frequencies from 5350 megahertz to 5470 megahertz.
            (2) 5850-5925 mhz band.--The term ``5850-5925 MHz band'' 
        means the portion of the electromagnetic spectrum between the 
        frequencies from 5850 megahertz to 5925 megahertz.
SEC. 6407. <<NOTE: 47 USC 1454.>>  GUARD BANDS AND UNLICENSED USE.

    (a) In General.--Nothing in subparagraph (G) of section 309(j)(8) of 
the Communications Act of 1934, as added by section 6402, or in section 
6403 shall be construed to prevent the Commission from using 
relinquished or other spectrum to implement band plans with guard bands.
    (b) Size of Guard Bands.--Such guard bands shall be no larger than 
is technically reasonable to prevent harmful interference between 
licensed services outside the guard bands.

[[Page 126 STAT. 232]]

    (c) Unlicensed Use in Guard Bands.--The Commission may permit the 
use of such guard bands for unlicensed use.
    (d) <<NOTE: Determination.>>  Database.--Unlicensed use shall rely 
on a database or subsequent methodology as determined by the Commission.

    (e) Protections Against Harmful Interference.--The Commission may 
not permit any use of a guard band that the Commission determines would 
cause harmful interference to licensed services.
SEC. 6408. STUDY ON RECEIVER PERFORMANCE AND SPECTRUM EFFICIENCY.

    (a) In General.--The Comptroller General of the United States shall 
conduct a study to consider efforts to ensure that each transmission 
system is designed and operated so that reasonable use of adjacent 
spectrum does not excessively impair the functioning of such system.
    (b) Required Considerations.--In conducting the study required by 
subsection (a), the Comptroller General shall consider--
            (1) the value of--
                    (A) improving receiver performance as it relates to 
                increasing spectral efficiency;
                    (B) improving the operation of services that are 
                located in adjacent spectrum; and
                    (C) narrowing the guard bands between adjacent 
                spectrum use;
            (2) the role of manufacturers, commercial licensees, and 
        government users with respect to their transmission systems and 
        the use of adjacent spectrum;
            (3) the feasibility of industry self-compliance with respect 
        to the design and operational requirements of transmission 
        systems and the reasonable use of adjacent spectrum; and
            (4) the value of action by the Commission and the Assistant 
        Secretary to establish, by rule, technical requirements or 
        standards for non-Federal and Federal use, respectively, with 
        respect to the reasonable use of portions of the radio spectrum 
        that are adjacent to each other.

    (c) Report.--Not later than 1 year after the date of the enactment 
of this Act, the Comptroller General shall submit a report on the 
results of the study required by subsection (a) to the Committee on 
Energy and Commerce of the House of Representatives and the Committee on 
Commerce, Science, and Transportation of the Senate.
    (d) Transmission System Defined.--In this section, the term 
``transmission system'' means any telecommunications, broadcast, 
satellite, commercial mobile service, or other communications system 
that employs radio spectrum.
SEC. 6409. <<NOTE: 47 USC 1455.>>  WIRELESS FACILITIES DEPLOYMENT.

    (a) Facility Modifications.--
            (1) In general.--Notwithstanding section 704 of the 
        Telecommunications Act of 1996 (Public Law 104-104) or any other 
        provision of law, a State or local government may not deny, and 
        shall approve, any eligible facilities request for a 
        modification of an existing wireless tower or base station that 
        does not substantially change the physical dimensions of such 
        tower or base station.
            (2) <<NOTE: Definition.>>  Eligible facilities request.--For 
        purposes of this subsection, the term ``eligible facilities 
        request'' means any

[[Page 126 STAT. 233]]

        request for modification of an existing wireless tower or base 
        station that involves--
                    (A) collocation of new transmission equipment;
                    (B) removal of transmission equipment; or
                    (C) replacement of transmission equipment.
            (3) Applicability of environmental laws.--Nothing in 
        paragraph (1) shall be construed to relieve the Commission from 
        the requirements of the National Historic Preservation Act or 
        the National Environmental Policy Act of 1969.

    (b) Federal Easements and Rights-of-way.--
            (1) Grant.--If an executive agency, a State, a political 
        subdivision or agency of a State, or a person, firm, or 
        organization applies for the grant of an easement or right-of-
        way to, in, over, or on a building or other property owned by 
        the Federal Government for the right to install, construct, and 
        maintain wireless service antenna structures and equipment and 
        backhaul transmission equipment, the executive agency having 
        control of the building or other property may grant to the 
        applicant, on behalf of the Federal Government, an easement or 
        right-of-way to perform such installation, construction, and 
        maintenance.
            (2) Application.--The Administrator of General Services 
        shall develop a common form for applications for easements and 
        rights-of-way under paragraph (1) for all executive agencies 
        that shall be used by applicants with respect to the buildings 
        or other property of each such agency.
            (3) Fee.--
                    (A) In general.--Notwithstanding any other provision 
                of law, the Administrator of General Services shall 
                establish a fee for the grant of an easement or right-
                of-way pursuant to paragraph (1) that is based on direct 
                cost recovery.
                    (B) Exceptions.--The Administrator of General 
                Services may establish exceptions to the fee amount 
                required under subparagraph (A)--
                          (i) in consideration of the public benefit 
                      provided by a grant of an easement or right-of-
                      way; and
                          (ii) in the interest of expanding wireless and 
                      broadband coverage.
            (4) Use of fees collected.--Any fee amounts collected by an 
        executive agency pursuant to paragraph (3) may be made 
        available, as provided in appropriations Acts, to such agency to 
        cover the costs of granting the easement or right-of-way.

    (c) Master Contracts for Wireless Facility Sitings.--
            (1) In general.--Notwithstanding <<NOTE: Deadline.>> section 
        704 of the Telecommunications Act of 1996 or any other provision 
        of law, and not later than 60 days after the date of the 
        enactment of this Act, the Administrator of General Services 
        shall--
                    (A) develop 1 or more master contracts that shall 
                govern the placement of wireless service antenna 
                structures on buildings and other property owned by the 
                Federal Government; and
                    (B) in developing the master contract or contracts, 
                standardize the treatment of the placement of wireless 
                service antenna structures on building rooftops or 
                facades, the placement of wireless service antenna 
                equipment on

[[Page 126 STAT. 234]]

                rooftops or inside buildings, the technology used in 
                connection with wireless service antenna structures or 
                equipment placed on Federal buildings and other 
                property, and any other key issues the Administrator of 
                General Services considers appropriate.
            (2) Applicability.--The master contract or contracts 
        developed by the Administrator of General Services under 
        paragraph (1) shall apply to all publicly accessible buildings 
        and other property owned by the Federal Government, unless the 
        Administrator of General Services decides that issues with 
        respect to the siting of a wireless service antenna structure on 
        a specific building or other property warrant nonstandard 
        treatment of such building or other property.
            (3) Application.--The Administrator of General Services 
        shall develop a common form or set of forms for wireless service 
        antenna structure siting applications under this subsection for 
        all executive agencies that shall be used by applicants with 
        respect to the buildings and other property of each such agency.

    (d) Executive Agency Defined.--In this section, the term ``executive 
agency'' has the meaning given such term in section 102 of title 40, 
United States Code.
SEC. 6410. FUNCTIONAL RESPONSIBILITY OF NTIA TO ENSURE EFFICIENT 
                          USE OF SPECTRUM.

    Section 103(b)(2) of the National Telecommunications and Information 
Administration Organization Act (47 U.S.C. 902(b)(2)) is amended by 
adding at the end the following:
                    ``(U) The responsibility to promote the best 
                possible and most efficient use of electromagnetic 
                spectrum resources across the Federal Government, 
                subject to and consistent with the needs and missions of 
                Federal agencies.''.
SEC. 6411. <<NOTE: 47 USC 1456.>>  SYSTEM CERTIFICATION.

    Not later <<NOTE: Deadline.>> than 6 months after the date of the 
enactment of this Act, the Director of the Office of Management and 
Budget shall update and revise section 33.4 of OMB Circular A-11 to 
reflect the recommendations regarding such Circular made in the Commerce 
Spectrum Management Advisory Committee Incentive Subcommittee report, 
adopted January 11, 2011.
SEC. 6412. DEPLOYMENT OF 11 GHZ, 18 GHZ, AND 23 GHZ MICROWAVE 
                          BANDS.

    (a) FCC Report on Rejection Rate.--Not later than 9 months after the 
date of the enactment of this Act, the Commission shall submit to the 
Committee on Energy and Commerce of the House of Representatives and the 
Committee on Commerce, Science, and Transportation of the Senate a 
report on the rejection rate for the spectrum described in subsection 
(c).
    (b) GAO Study on Deployment.--
            (1) In general.--The Comptroller General of the United 
        States shall conduct a study to assess whether the spectrum 
        described in subsection (c) is being deployed in such a manner 
        that, in areas with high demand for common carrier licenses for 
        the use of such spectrum, market forces--
                    (A) provide adequate incentive for the efficient use 
                of such spectrum; and

[[Page 126 STAT. 235]]

                    (B) ensure that the Federal Government receives 
                maximum revenue for such spectrum through competitive 
                bidding under section 309(j) of the Communications Act 
                of 1934 (47 U.S.C. 309(j)).
            (2) Factors for consideration.--In conducting the study 
        required by paragraph (1), the Comptroller General shall take 
        into consideration--
                    (A) spectrum that is adjacent to the spectrum 
                described in subsection (c) and that was assigned 
                through competitive bidding under section 309(j) of the 
                Communications Act of 1934; and
                    (B) the rejection rate for the spectrum described in 
                subsection (c), current as of the time of the assessment 
                and as projected for the future, in markets in which 
                there is a high demand for common carrier licenses for 
                the use of such spectrum.
            (3) Report.--Not later than 9 months after the date of the 
        enactment of this Act, the Comptroller General shall submit a 
        report on the study required by paragraph (1) to--
                    (A) the Commission; and
                    (B) the Committee on Energy and Commerce of the 
                House of Representatives and the Committee on Commerce, 
                Science, and Transportation of the Senate.

    (c) Spectrum Described.--The spectrum described in this subsection 
is the portions of the electromagnetic spectrum between the frequencies 
from 10,700 megahertz to 11,700 megahertz, from 17,700 megahertz to 
19,700 megahertz, and from 21,200 megahertz to 23,600 megahertz.
    (d) Rejection Rate Defined.--In this section, the term ``rejection 
rate'' means the number and percent of applications (whether made to the 
Commission or to a third-party coordinator) for common carrier use of 
spectrum that were not granted because of lack of availability of such 
spectrum or interference concerns of existing licensees.
    (e) No Additional Funds Authorized.--Funds necessary to carry out 
this section shall be derived from funds otherwise authorized to be 
appropriated.
SEC. 6413. <<NOTE: 47 USC 1457.>>  PUBLIC SAFETY TRUST FUND.

    (a) Establishment of Public Safety Trust Fund.--
            (1) In general.--There is established in the Treasury of the 
        United States a trust fund to be known as the Public Safety 
        Trust Fund.
            (2) Availability.--Amounts deposited in the Public Safety 
        Trust Fund shall remain available through fiscal year 2022. Any 
        amounts remaining in the Fund after the end of such fiscal year 
        shall be deposited in the general fund of the Treasury, where 
        such amounts shall be dedicated for the sole purpose of deficit 
        reduction.

    (b) Use of Fund.--As amounts are deposited in the Public Safety 
Trust Fund, such amounts shall be used to make the following deposits or 
payments in the following order of priority:
            (1) Repayment of amount borrowed for first responder network 
        authority.--An amount not to exceed $2,000,000,000 shall be 
        available to the NTIA to reimburse the general fund of the 
        Treasury for any amounts borrowed under section 6207.

[[Page 126 STAT. 236]]

            (2) State and local implementation fund.--$135,000,000 shall 
        be deposited in the State and Local Implementation Fund 
        established by section 6301.
            (3) Buildout by first responder network authority.--
        $7,000,000,000, reduced by the amount borrowed under section 
        6207, shall be deposited in the Network Construction Fund 
        established by section 6206.
            (4) Public safety research.--$100,000,000 shall be available 
        to the Director of NIST to carry out section 6303.
            (5) Deficit reduction.--$20,400,000,000 shall be deposited 
        in the general fund of the Treasury, where such amount shall be 
        dedicated for the sole purpose of deficit reduction.
            (6) 9-1-1, e9-1-1, and next generation 9-1-1 implementation 
        grants.--$115,000,000 shall be available to the Assistant 
        Secretary and the Administrator of the National Highway Traffic 
        Safety Administration to carry out the grant program under 
        section 158 of the National Telecommunications and Information 
        Administration Organization Act, as amended by section 6503 of 
        this title.
            (7) Additional public safety research.--$200,000,000 shall 
        be available to the Director of NIST to carry out section 6303.
            (8) Additional deficit reduction.--Any remaining amounts 
        deposited in the Public Safety Trust Fund shall be deposited in 
        the general fund of the Treasury, where such amounts shall be 
        dedicated for the sole purpose of deficit reduction.

    (c) Investment.--Amounts in the Public Safety Trust Fund shall be 
invested in accordance with section 9702 of title 31, United States 
Code, and any interest on, and proceeds from, any such investment shall 
be credited to, and become a part of, the Fund.
SEC. 6414. STUDY ON EMERGENCY COMMUNICATIONS BY AMATEUR RADIO AND 
                          IMPEDIMENTS TO AMATEUR RADIO 
                          COMMUNICATIONS.

    (a) In General.--Not <<NOTE: Deadline.>> later than 180 days after 
the date of the enactment of this Act, the Commission, in consultation 
with the Office of Emergency Communications in the Department of 
Homeland Security, shall--
            (1) complete a study on the uses and capabilities of amateur 
        radio service communications in emergencies and disaster relief; 
        and
            (2) <<NOTE: Reports.>>  submit to the Committee on Energy 
        and Commerce of the House of Representatives and the Committee 
        on Commerce, Science, and Transportation of the Senate a report 
        on the findings of such study.

    (b) Contents.--The study required by subsection (a) shall include--
            (1)(A) a review of the importance of emergency amateur radio 
        service communications relating to disasters, severe weather, 
        and other threats to lives and property in the United States; 
        and
            (B) recommendations for--
                    (i) enhancements in the voluntary deployment of 
                amateur radio operators in disaster and emergency 
                communications and disaster relief efforts; and

[[Page 126 STAT. 237]]

                    (ii) improved integration of amateur radio operators 
                in the planning and furtherance of initiatives of the 
                Federal Government; and
            (2)(A) an identification of impediments to enhanced amateur 
        radio service communications, such as the effects of 
        unreasonable or unnecessary private land use restrictions on 
        residential antenna installations; and
            (B) recommendations regarding the removal of such 
        impediments.

    (c) Expertise.--In conducting the study required by subsection (a), 
the Commission shall use the expertise of stakeholder entities and 
organizations, including the amateur radio, emergency response, and 
disaster communications communities.

   Subtitle E--Next <<NOTE: Next Generation 9-1-1 Advancement Act of 
2012.>> Generation 9-1-1 Advancement Act of 2012
SEC. <<NOTE: 47 USC 1401 note.>> 6501. SHORT TITLE.

    This subtitle may be cited as the ``Next Generation 9-1-1 
Advancement Act of 2012''.
SEC. <<NOTE: 47 USC 1471.>> 6502. DEFINITIONS.

    In this subtitle, the following definitions shall apply:
            (1) 9-1-1 services and e9-1-1 services.--The terms ``9-1-1 
        services'' and ``E9-1-1 services'' shall have the meaning given 
        those terms in section 158 of the National Telecommunications 
        and Information Administration Organization Act (47 U.S.C. 942), 
        as amended by this subtitle.
            (2) Multi-line telephone system.--The term ``multi-line 
        telephone system'' or ``MLTS'' means a system comprised of 
        common control units, telephone sets, control hardware and 
        software and adjunct systems, including network and premises 
        based systems, such as Centrex and VoIP, as well as PBX, Hybrid, 
        and Key Telephone Systems (as classified by the Commission under 
        part 68 of title 47, Code of Federal Regulations), and includes 
        systems owned or leased by governmental agencies and non-profit 
        entities, as well as for profit businesses.
            (3) Office.--The term ``Office'' means the 9-1-1 
        Implementation Coordination Office established under section 158 
        of the National Telecommunications and Information 
        Administration Organization Act (47 U.S.C. 942), as amended by 
        this subtitle.
SEC. 6503. COORDINATION OF 9-1-1 IMPLEMENTATION.

    Section 158 of the National Telecommunications and Information 
Administration Organization Act (47 U.S.C. 942) is amended to read as 
follows:
``SEC. 158. COORDINATION OF 9-1-1, E9-1-1, AND NEXT GENERATION 9-
                        1-1 IMPLEMENTATION.

    ``(a) 9-1-1 Implementation Coordination Office.--
            ``(1) Establishment and continuation.--The Assistant 
        Secretary and the Administrator of the National Highway Traffic 
        Safety Administration shall--
                    ``(A) establish and further a program to facilitate 
                coordination and communication between Federal, State,

[[Page 126 STAT. 238]]

                and local emergency communications systems, emergency 
                personnel, public safety organizations, 
                telecommunications carriers, and telecommunications 
                equipment manufacturers and vendors involved in the 
                implementation of 9-1-1 services; and
                    ``(B) establish a 9-1-1 Implementation Coordination 
                Office to implement the provisions of this section.
            ``(2) Management plan.--
                    ``(A) Development.--The Assistant Secretary and the 
                Administrator shall develop a management plan for the 
                grant program established under this section, including 
                by developing--
                          ``(i) plans related to the organizational 
                      structure of such program; and
                          ``(ii) funding profiles for each fiscal year 
                      of the duration of such program.
                    ``(B) Submission to congress.--
                Not <<NOTE: Deadline.>> later than 90 days after the 
                date of enactment of the Next Generation 9-1-1 
                Advancement Act of 2012, the Assistant Secretary and the 
                Administrator shall submit the management plan developed 
                under subparagraph (A) to--
                          ``(i) the Committees on Commerce, Science, and 
                      Transportation and Appropriations of the Senate; 
                      and
                          ``(ii) the Committees on Energy and Commerce 
                      and Appropriations of the House of 
                      Representatives.
            ``(3) Purpose of office.--The Office shall--
                    ``(A) take actions, in concert with coordinators 
                designated in accordance with subsection (b)(3)(A)(ii), 
                to improve coordination and communication with respect 
                to the implementation of 9-1-1 services, E9-1-1 
                services, and Next Generation 9-1-1 services;
                    ``(B) develop, collect, and disseminate information 
                concerning practices, procedures, and technology used in 
                the implementation of 9-1-1 services, E9-1-1 services, 
                and Next Generation 9-1-1 services;
                    ``(C) advise and assist eligible entities in the 
                preparation of implementation plans required under 
                subsection (b)(3)(A)(iii);
                    ``(D) receive, review, and recommend the approval or 
                disapproval of applications for grants under subsection 
                (b); and
                    ``(E) oversee the use of funds provided by such 
                grants in fulfilling such implementation plans.
            ``(4) Reports.--The Assistant Secretary and the 
        Administrator shall provide an annual report to Congress by the 
        first day of October of each year on the activities of the 
        Office to improve coordination and communication with respect to 
        the implementation of 9-1-1 services, E9-1-1 services, and Next 
        Generation 9-1-1 services.

    ``(b) 9-1-1, E9-1-1, and Next Generation 9-1-1 Implementation 
Grants.--
            ``(1) Matching grants.--The Assistant Secretary and the 
        Administrator, acting through the Office, shall provide grants 
        to eligible entities for--

[[Page 126 STAT. 239]]

                    ``(A) the implementation and operation of 9-1-1 
                services, E9-1-1 services, migration to an IP-enabled 
                emergency network, and adoption and operation of Next 
                Generation 9-1-1 services and applications;
                    ``(B) the implementation of IP-enabled emergency 
                services and applications enabled by Next Generation 9-
                1-1 services, including the establishment of IP backbone 
                networks and the application layer software 
                infrastructure needed to interconnect the multitude of 
                emergency response organizations; and
                    ``(C) training public safety personnel, including 
                call-takers, first responders, and other individuals and 
                organizations who are part of the emergency response 
                chain in 9-1-1 services.
            ``(2) Matching requirement.--The Federal share of the cost 
        of a project eligible for a grant under this section shall not 
        exceed 60 percent.
            ``(3) Coordination required.--
        In <<NOTE: Certification.>> providing grants under paragraph 
        (1), the Assistant Secretary and the Administrator shall require 
        an eligible entity to certify in its application that--
                    ``(A) in the case of an eligible entity that is a 
                State government, the entity--
                          ``(i) has coordinated its application with the 
                      public safety answering points located within the 
                      jurisdiction of such entity;
                          ``(ii) has designated a single officer or 
                      governmental body of the entity to serve as the 
                      coordinator of implementation of 9-1-1 services, 
                      except that such designation need not vest such 
                      coordinator with direct legal authority to 
                      implement 9-1-1 services, E9-1-1 services, or Next 
                      Generation 9-1-1 services or to manage emergency 
                      communications operations;
                          ``(iii) has established a plan for the 
                      coordination and implementation of 9-1-1 services, 
                      E9-1-1 services, and Next Generation 9-1-1 
                      services; and
                          ``(iv) has integrated telecommunications 
                      services involved in the implementation and 
                      delivery of 9-1-1 services, E9-1-1 services, and 
                      Next Generation 9-1-1 services; or
                    ``(B) in the case of an eligible entity that is not 
                a State, the entity has complied with clauses (i), 
                (iii), and (iv) of subparagraph (A), and the State in 
                which it is located has complied with clause (ii) of 
                such subparagraph.
            ``(4) Criteria.--Not <<NOTE: Deadline. Regulations. Public 
        comments.>> later than 120 days after the date of enactment of 
        the Next Generation 9-1-1 Advancement Act of 2012, the Assistant 
        Secretary and the Administrator shall issue regulations, after 
        providing the public with notice and an opportunity to comment, 
        prescribing the criteria for selection for grants under this 
        section. The criteria shall include performance requirements and 
        a timeline for completion of any project to be financed by a 
        grant under this section. The Assistant Secretary and the 
        Administrator shall update such regulations as necessary.

    ``(c) Diversion of 9-1-1 Charges.--
            ``(1) Designated 9-1-1 charges.--For 
        the <<NOTE: Definition.>> purposes of this subsection, the term 
        `designated 9-1-1 charges' means any

[[Page 126 STAT. 240]]

        taxes, fees, or other charges imposed by a State or other taxing 
        jurisdiction that are designated or presented as dedicated to 
        deliver or improve 9-1-1 services, E9-1-1 services, or Next 
        Generation 9-1-1 services.
            ``(2) Certification.--Each <<NOTE: Time period.>> applicant 
        for a matching grant under this section shall certify to the 
        Assistant Secretary and the Administrator at the time of 
        application, and each applicant that receives such a grant shall 
        certify to the Assistant Secretary and the Administrator 
        annually thereafter during any period of time during which the 
        funds from the grant are available to the applicant, that no 
        portion of any designated 9-1-1 charges imposed by a State or 
        other taxing jurisdiction within which the applicant is located 
        are being obligated or expended for any purpose other than the 
        purposes for which such charges are designated or presented 
        during the period beginning 180 days immediately preceding the 
        date of the application and continuing through the period of 
        time during which the funds from the grant are available to the 
        applicant.
            ``(3) Condition of grant.--Each applicant for a grant under 
        this section shall agree, as a condition of receipt of the 
        grant, that if the State or other taxing jurisdiction within 
        which the applicant is located, during any period of time during 
        which the funds from the grant are available to the applicant, 
        obligates or expends designated 9-1-1 charges for any purpose 
        other than the purposes for which such charges are designated or 
        presented, eliminates such charges, or redesignates such charges 
        for purposes other than the implementation or operation of 9-1-1 
        services, E9-1-1 services, or Next Generation 9-1-1 services, 
        all of the funds from such grant shall be returned to the 
        Office.
            ``(4) Penalty for providing false information.--Any 
        applicant that provides a certification under paragraph (2) 
        knowing that the information provided in the certification was 
        false shall--
                    ``(A) not be eligible to receive the grant under 
                subsection (b);
                    ``(B) return any grant awarded under subsection (b) 
                during the time that the certification was not valid; 
                and
                    ``(C) not be eligible to receive any subsequent 
                grants under subsection (b).

    ``(d) Funding and Termination.--
            ``(1) In general.--From the amounts made available to the 
        Assistant Secretary and the Administrator under section 
        6413(b)(6) of the Middle Class Tax Relief and Job Creation Act 
        of 2012, the Assistant Secretary and the Administrator are 
        authorized to provide grants under this section through the end 
        of fiscal year 2022. Not more than 5 percent of such amounts may 
        be obligated or expended to cover the administrative costs of 
        carrying out this section.
            ``(2) Termination.--Effective on October 1, 2022, the 
        authority provided by this section terminates and this section 
        shall have no effect.

    ``(e) Definitions.--In this <<NOTE: Applicability.>> section, the 
following definitions shall apply:
            ``(1) 9-1-1 services.--The term `9-1-1 services' includes 
        both E9-1-1 services and Next Generation 9-1-1 services.

[[Page 126 STAT. 241]]

            ``(2) E9-1-1 services.--The term `E9-1-1 services' means 
        both phase I and phase II enhanced 9-1-1 services, as described 
        in section 20.18 of the Commission's regulations (47 C.F.R. 
        20.18), as in effect on the date of enactment of the Next 
        Generation 9-1-1 Advancement Act of 2012, or as subsequently 
        revised by the Commission.
            ``(3) Eligible entity.--
                    ``(A) In general.--The term `eligible entity' means 
                a State or local government or a tribal organization (as 
                defined in section 4(l) of the Indian Self-Determination 
                and Education Assistance Act (25 U.S.C. 450b(l))).
                    ``(B) Instrumentalities.--The term `eligible entity' 
                includes public authorities, boards, commissions, and 
                similar bodies created by one or more eligible entities 
                described in subparagraph (A) to provide 9-1-1 services, 
                E9-1-1 services, or Next Generation 9-1-1 services.
                    ``(C) Exception.--The term `eligible entity' does 
                not include any entity that has failed to submit the 
                most recently required certification under subsection 
                (c) within 30 days after the date on which such 
                certification is due.
            ``(4) Emergency call.--The term `emergency call' refers to 
        any real-time communication with a public safety answering point 
        or other emergency management or response agency, including--
                    ``(A) through voice, text, or video and related 
                data; and
                    ``(B) nonhuman-initiated automatic event alerts, 
                such as alarms, telematics, or sensor data, which may 
                also include real-time voice, text, or video 
                communications.
            ``(5) Next generation 9-1-1 services.--The term `Next 
        Generation 9-1-1 services' means an IP-based system comprised of 
        hardware, software, data, and operational policies and 
        procedures that--
                    ``(A) provides standardized interfaces from 
                emergency call and message services to support emergency 
                communications;
                    ``(B) processes all types of emergency calls, 
                including voice, data, and multimedia information;
                    ``(C) acquires and integrates additional emergency 
                call data useful to call routing and handling;
                    ``(D) delivers the emergency calls, messages, and 
                data to the appropriate public safety answering point 
                and other appropriate emergency entities;
                    ``(E) supports data or video communications needs 
                for coordinated incident response and management; and
                    ``(F) provides broadband service to public safety 
                answering points or other first responder entities.
            ``(6) Office.--The term `Office' means the 9-1-1 
        Implementation Coordination Office.
            ``(7) Public safety answering point.--The term `public 
        safety answering point' has the meaning given the term in 
        section 222 of the Communications Act of 1934 (47 U.S.C. 222).
            ``(8) State.--The term `State' means any State of the United 
        States, the District of Columbia, Puerto Rico, American Samoa, 
        Guam, the United States Virgin Islands, the Northern

[[Page 126 STAT. 242]]

        Mariana Islands, and any other territory or possession of the 
        United States.''.
SEC. <<NOTE: Deadlines.>> 6504. REQUIREMENTS FOR MULTI-LINE 
                          TELEPHONE SYSTEMS.

    (a) In General.--Not <<NOTE: Reports.>> later than 270 days after 
the date of the enactment of this Act, the Administrator of General 
Services, in conjunction with the Office, shall issue a report to 
Congress identifying the 9-1-1 capabilities of the multi-line telephone 
system in use by all Federal agencies in all Federal buildings and 
properties.

    (b) Commission Action.--
            (1) In general.--Not <<NOTE: Notice.>> later than 90 days 
        after the date of the enactment of this Act, the Commission 
        shall issue a public notice seeking comment on the feasibility 
        of MLTS manufacturers including within all such systems 
        manufactured or sold after a date certain, to be determined by 
        the Commission, one or more mechanisms to provide a sufficiently 
        precise indication of a 9-1-1 caller's location, while avoiding 
        the imposition of undue burdens on MLTS manufacturers, 
        providers, and operators.
            (2) Specific requirement.--The public notice under paragraph 
        (1) shall seek comment on the National Emergency Number 
        Association's ``Technical Requirements Document On Model 
        Legislation E9-1-1 for Multi-Line Telephone Systems'' (NENA 06-
        750, Version 2).
SEC. 6505. GAO STUDY OF STATE AND LOCAL USE OF 9-1-1 SERVICE 
                          CHARGES.

    (a) In General.--Not <<NOTE: Deadline.>> later than 60 days after 
the date of the enactment of this Act, the Comptroller General of the 
United States shall initiate a study of--
            (1) the imposition of taxes, fees, or other charges imposed 
        by States or political subdivisions of States that are 
        designated or presented as dedicated to improve emergency 
        communications services, including 9-1-1 services or enhanced 9-
        1-1 services, or related to emergency communications services 
        operations or improvements; and
            (2) the use of revenues derived from such taxes, fees, or 
        charges.

    (b) Report.--Not later than 18 months after initiating the study 
required by subsection (a), the Comptroller General shall prepare and 
submit a report on the results of the study to the Committee on 
Commerce, Science, and Transportation of the Senate and the Committee on 
Energy and Commerce of the House of Representatives setting forth the 
findings, conclusions, and recommendations, if any, of the study, 
including--
            (1) the identity of each State or political subdivision that 
        imposes such taxes, fees, or other charges; and
            (2) the amount of revenues obligated or expended by that 
        State or political subdivision for any purpose other than the 
        purposes for which such taxes, fees, or charges were designated 
        or presented.
SEC. <<NOTE: 47 USC 1472.>> 6506. PARITY OF PROTECTION FOR 
                          PROVISION OR USE OF NEXT GENERATION 9-1-
                          1 SERVICES.

    (a) Immunity.--A provider or user of Next Generation 9-1-1 services, 
a public safety answering point, and the officers, directors, employees, 
vendors, agents, and authorizing government entity

[[Page 126 STAT. 243]]

(if any) of such provider, user, or public safety answering point, shall 
have immunity and protection from liability under Federal and State law 
to the extent provided in subsection (b) with respect to--
            (1) the release of subscriber information related to 
        emergency calls or emergency services;
            (2) the use or provision of 9-1-1 services, E9-1-1 services, 
        or Next Generation 9-1-1 services; and
            (3) other matters related to 9-1-1 services, E9-1-1 
        services, or Next Generation 9-1-1 services.

    (b) Scope of Immunity and Protection From Liability.--The scope and 
extent of the immunity and protection from liability afforded under 
subsection (a) shall be the same as that provided under section 4 of the 
Wireless Communications and Public Safety Act of 1999 (47 U.S.C. 615a) 
to wireless carriers, public safety answering points, and users of 
wireless 9-1-1 service (as defined in paragraphs (4), (3), and (6), 
respectively, of section 6 of that Act (47 U.S.C. 615b)) with respect to 
such release, use, and other matters.
SEC. <<NOTE: 47 USC 1473.>> 6507. COMMISSION PROCEEDING ON 
                          AUTODIALING.

    (a) In General.--Not <<NOTE: Deadline.>> later than 90 days after 
the date of the enactment of this Act, the Commission shall initiate a 
proceeding to create a specialized Do-Not-Call registry for public 
safety answering points.

    (b) Features of the Registry.--
The <<NOTE: Regulations. Notice.>> Commission shall issue regulations, 
after providing the public with notice and an opportunity to comment, 
that--
            (1) permit verified public safety answering point 
        administrators or managers to register the telephone numbers of 
        all 9-1-1 trunks and other lines used for the provision of 
        emergency services to the public or for communications between 
        public safety agencies;
            (2) provide a process for verifying, no less frequently than 
        once every 7 years, that registered numbers should continue to 
        appear upon the registry;
            (3) provide a process for granting and tracking access to 
        the registry by the operators of automatic dialing equipment;
            (4) protect the list of registered numbers from disclosure 
        or dissemination by parties granted access to the registry; and
            (5) prohibit the use of automatic dialing or ``robocall'' 
        equipment to establish contact with registered numbers.

    (c) Enforcement.--The <<NOTE: Penalties. Fines.>> Commission shall--
            (1) establish monetary penalties for violations of the 
        protective regulations established pursuant to subsection (b)(4) 
        of not less than $100,000 per incident nor more than $1,000,000 
        per incident;
            (2) establish monetary penalties for violations of the 
        prohibition on automatically dialing registered numbers 
        established pursuant to subsection (b)(5) of not less than 
        $10,000 per call nor more than $100,000 per call; and
            (3) provide for the imposition of fines under paragraphs (1) 
        or (2) that vary depending upon whether the conduct leading to 
        the violation was negligent, grossly negligent, reckless, or 
        willful, and depending on whether the violation was a first or 
        subsequent offence.

[[Page 126 STAT. 244]]

SEC. 6508. REPORT ON COSTS FOR REQUIREMENTS AND SPECIFICATIONS OF 
                          NEXT GENERATION 9-1-1 SERVICES.

    (a) In General.--Not later than 1 year after the date of the 
enactment of this Act, the Office, in consultation with the 
Administrator of the National Highway Traffic Safety Administration, the 
Commission, and the Secretary of Homeland Security, shall prepare and 
submit a report to Congress that analyzes and determines detailed costs 
for specific Next Generation 9-1-1 service requirements and 
specifications.
    (b) Purpose of Report.--The purpose of the report required under 
subsection (a) is to serve as a resource for Congress as it considers 
creating a coordinated, long-term funding mechanism for the deployment 
and operation, accessibility, application development, equipment 
procurement, and training of personnel for Next Generation 9-1-1 
services.
    (c) Required Inclusions.--The report required under subsection (a) 
shall include the following:
            (1) How costs would be broken out geographically and 
        allocated among public safety answering points, broadband 
        service providers, and third-party providers of Next Generation 
        9-1-1 services.
            (2) An assessment of the current state of Next Generation 9-
        1-1 service readiness among public safety answering points.
            (3) How differences in public safety answering points' 
        access to broadband across the United States may affect costs.
            (4) A technical analysis and cost study of different 
        delivery platforms, such as wireline, wireless, and satellite.
            (5) An assessment of the architectural characteristics, 
        feasibility, and limitations of Next Generation 9-1-1 service 
        delivery.
            (6) An analysis of the needs for Next Generation 9-1-1 
        services of persons with disabilities.
            (7) Standards and protocols for Next Generation 9-1-1 
        services and for incorporating Voice over Internet Protocol and 
        ``Real-Time Text'' standards.
SEC. 6509. COMMISSION RECOMMENDATIONS FOR LEGAL AND STATUTORY 
                          FRAMEWORK FOR NEXT GENERATION 9-1-1 
                          SERVICES.

    Not <<NOTE: Deadline. Reports.>> later than 1 year after the date of 
the enactment of this Act, the Commission, in coordination with the 
Secretary of Homeland Security, the Administrator of the National 
Highway Traffic Safety Administration, and the Office, shall prepare and 
submit a report to Congress that contains recommendations for the legal 
and statutory framework for Next Generation 9-1-1 services, consistent 
with recommendations in the National Broadband Plan developed by the 
Commission pursuant to the American Recovery and Reinvestment Act of 
2009, including the following:
            (1) A legal and regulatory framework for the development of 
        Next Generation 9-1-1 services and the transition from legacy 9-
        1-1 to Next Generation 9-1-1 networks.
            (2) Legal mechanisms to ensure efficient and accurate 
        transmission of 9-1-1 caller information to emergency response 
        agencies.
            (3) Recommendations for removing jurisdictional barriers and 
        inconsistent legacy regulations including--

[[Page 126 STAT. 245]]

                    (A) proposals that would require States to remove 
                regulatory roadblocks to Next Generation 9-1-1 services 
                development, while recognizing existing State authority 
                over 9-1-1 services;
                    (B) eliminating outdated 9-1-1 regulations at the 
                Federal level; and
                    (C) preempting inconsistent State regulations.

             Subtitle F--Telecommunications Development Fund

SEC. 6601. NO ADDITIONAL FEDERAL FUNDS.

    Section 309(j)(8)(C)(iii) of the Communications Act of 1934 (47 
U.S.C. 309(j)(8)(C)(iii)) is amended to read as follows:
                          ``(iii) the interest accrued to the account 
                      shall be deposited in the general fund of the 
                      Treasury, where such amount shall be dedicated for 
                      the sole purpose of deficit reduction.''.
SEC. 6602. INDEPENDENCE OF THE FUND.

    Section 714 of the Communications Act of 1934 (47 U.S.C. 614) is 
amended--
            (1) by striking subsection (c) and inserting the following:

    ``(c) Independent Board of Directors.--The Fund shall have a Board 
of Directors consisting of 5 people with experience in areas including 
finance, investment banking, government banking, communications law and 
administrative practice, and public policy. 
The <<NOTE: Deadline.>> Board of Directors shall select annually a Chair 
from among the directors. A <<NOTE: Appointments.>> nominating 
committee, comprised of the Chair and 2 other directors selected by the 
Chair, shall appoint additional directors. The Fund's bylaws shall 
regulate the other aspects of the Board of Directors, including 
provisions relating to meetings, quorums, committees, and other matters, 
all as typically contained in the bylaws of a similar private investment 
fund.'';
            (2) in subsection (d)--
                    (A) by striking ``(after consultation with the 
                Commission and the Secretary of the Treasury)'';
                    (B) by striking paragraph (1); and
                    (C) by redesignating paragraphs (2) through (4) as 
                paragraphs (1) through (3), respectively; and
            (3) in subsection (g), by striking ``subsection (d)(2)'' and 
        inserting ``subsection (d)(1)''.

                 Subtitle G--Federal Spectrum Relocation

SEC. 6701. RELOCATION OF AND SPECTRUM SHARING BY FEDERAL 
                          GOVERNMENT STATIONS.

    (a) In General.--Section 113 of the National Telecommunications and 
Information Administration Organization Act (47 U.S.C. 923) is amended--
            (1) in subsection (g)--
                    (A) by striking the heading and inserting 
                ``Relocation of and Spectrum Sharing by Federal 
                Government Stations.--'';
                    (B) by amending paragraph (1) to read as follows:

[[Page 126 STAT. 246]]

            ``(1) Eligible federal entities.--Any Federal entity that 
        operates a Federal Government station authorized to use a band 
        of eligible frequencies described in paragraph (2) and that 
        incurs relocation or sharing costs because of planning for an 
        auction of spectrum frequencies or the reallocation of spectrum 
        frequencies from Federal use to exclusive non-Federal use or to 
        shared use shall receive payment for such relocation or sharing 
        costs from the Spectrum Relocation Fund, in accordance with this 
        section and section 118. For purposes of this paragraph, Federal 
        power agencies exempted under subsection (c)(4) that choose to 
        relocate from the frequencies identified for reallocation 
        pursuant to subsection (a) are eligible to receive payment under 
        this paragraph.'';
                    (C) by amending paragraph (2)(B) to read as follows:
                    ``(B) any other band of frequencies reallocated from 
                Federal use to non-Federal use or to shared use after 
                January 1, 2003, that is assigned by competitive bidding 
                pursuant to section 309(j) of the Communications Act of 
                1934 (47 U.S.C. 309(j)).'';
                    (D) by amending paragraph (3) to read as follows:
            ``(3) Relocation or sharing costs defined.--
                    ``(A) In general.--For purposes of this section and 
                section 118, the term `relocation or sharing costs' 
                means the costs incurred by a Federal entity in 
                connection with the auction of spectrum frequencies 
                previously assigned to such entity or the sharing of 
                spectrum frequencies assigned to such entity (including 
                the auction or a planned auction of the rights to use 
                spectrum frequencies on a shared basis with such entity) 
                in order to achieve comparable capability of systems as 
                before the relocation or sharing arrangement. Such term 
                includes, with respect to relocation or sharing, as the 
                case may be--
                          ``(i) the costs of any modification or 
                      replacement of equipment, spares, associated 
                      ancillary equipment, software, facilities, 
                      operating manuals, training, or compliance with 
                      regulations that are attributable to relocation or 
                      sharing;
                          ``(ii) the costs of all engineering, 
                      equipment, software, site acquisition, and 
                      construction, as well as any legitimate and 
                      prudent transaction expense, including term-
                      limited Federal civil servant and contractor staff 
                      necessary to carry out the relocation or sharing 
                      activities of a Federal entity, and reasonable 
                      additional costs incurred by the Federal entity 
                      that are attributable to relocation or sharing, 
                      including increased recurring costs associated 
                      with the replacement of facilities;
                          ``(iii) the costs of research, engineering 
                      studies, economic analyses, or other expenses 
                      reasonably incurred in connection with--
                                    ``(I) calculating the estimated 
                                relocation or sharing costs that are 
                                provided to the Commission pursuant to 
                                paragraph (4)(A);
                                    ``(II) determining the technical or 
                                operational feasibility of relocation to 
                                1 or more potential relocation bands; or

[[Page 126 STAT. 247]]

                                    ``(III) planning for or managing a 
                                relocation or sharing arrangement 
                                (including spectrum coordination with 
                                auction winners);
                          ``(iv) the one-time costs of any modification 
                      of equipment reasonably necessary--
                                    ``(I) to accommodate non-Federal use 
                                of shared frequencies; or
                                    ``(II) in the case of eligible 
                                frequencies reallocated for exclusive 
                                non-Federal use and assigned through a 
                                system of competitive bidding under 
                                section 309(j) of the Communications Act 
                                of 1934 (47 U.S.C. 309(j)) but with 
                                respect to which a Federal entity 
                                retains primary allocation or protected 
                                status for a period of time after the 
                                completion of the competitive bidding 
                                process, to accommodate shared Federal 
                                and non-Federal use of such frequencies 
                                for such period; and
                          ``(v) the costs associated with the 
                      accelerated replacement of systems and equipment 
                      if the acceleration is necessary to ensure the 
                      timely relocation of systems to a new frequency 
                      assignment or the timely accommodation of sharing 
                      of Federal frequencies.
                    ``(B) Comparable capability of systems.--For 
                purposes of subparagraph (A), comparable capability of 
                systems--
                          ``(i) may be achieved by relocating a Federal 
                      Government station to a new frequency assignment, 
                      by relocating a Federal Government station to a 
                      different geographic location, by modifying 
                      Federal Government equipment to mitigate 
                      interference or use less spectrum, in terms of 
                      bandwidth, geography, or time, and thereby 
                      permitting spectrum sharing (including sharing 
                      among relocated Federal entities and incumbents to 
                      make spectrum available for non-Federal use) or 
                      relocation, or by utilizing an alternative 
                      technology; and
                          ``(ii) includes the acquisition of state-of-
                      the-art replacement systems intended to meet 
                      comparable operational scope, which may include 
                      incidental increases in functionality.'';
                    (E) in paragraph (4)--
                          (i) in the heading, by striking ``relocations 
                      costs'' and inserting ``relocation or sharing 
                      costs'';
                          (ii) by striking ``relocation costs'' each 
                      place it appears and inserting ``relocation or 
                      sharing costs''; and
                          (iii) in subparagraph (A), by inserting ``or 
                      sharing'' after ``such relocation'';
                    (F) in paragraph (5)--
                          (i) by striking ``relocation costs'' and 
                      inserting ``relocation or sharing costs''; and
                          (ii) by inserting ``or sharing'' after ``for 
                      relocation''; and
                    (G) by amending paragraph (6) to read as follows:
            ``(6) Implementation of procedures.--The NTIA shall take 
        such actions as necessary to ensure the timely relocation

[[Page 126 STAT. 248]]

        of Federal entities' spectrum-related operations from 
        frequencies described in paragraph (2) to frequencies or 
        facilities of comparable capability and to ensure the timely 
        implementation of arrangements for the sharing of frequencies 
        described in such 
        paragraph. <<NOTE: Termination. Notification.>> Upon a finding 
        by the NTIA that a Federal entity has achieved comparable 
        capability of systems, the NTIA shall terminate or limit the 
        entity's authorization and notify the Commission that the 
        entity's relocation has been completed or sharing arrangement 
        has been implemented. <<NOTE: Termination. Determination.>> The 
        NTIA shall also terminate such entity's authorization if the 
        NTIA determines that the entity has unreasonably failed to 
        comply with the timeline for relocation or sharing submitted by 
        the Director of the Office of Management and Budget under 
        section 118(d)(2)(C).'';
            (2) by redesignating subsections (h) and (i) as subsections 
        (k) and (l), respectively; and
            (3) by inserting after subsection (g) the following:

    ``(h) Development and Publication of Relocation or Sharing 
Transition Plans.--
            ``(1) Development of transition plan by federal entity.--
        Not <<NOTE: Deadline.>> later than 240 days before the 
        commencement of any auction of eligible frequencies described in 
        subsection (g)(2), a Federal entity authorized to use any such 
        frequency shall submit to the NTIA and to the Technical Panel 
        established by paragraph (3) a transition plan for the 
        implementation by such entity of the relocation or sharing 
        arrangement. <<NOTE: Public input.>> The NTIA shall specify, 
        after public input, a common format for all Federal entities to 
        follow in preparing transition plans under this paragraph.
            ``(2) Contents of transition plan.--The transition plan 
        required by paragraph (1) shall include the following 
        information:
                    ``(A) The use by the Federal entity of the eligible 
                frequencies to be auctioned, current as of the date of 
                the submission of the plan.
                    ``(B) The geographic location of the facilities or 
                systems of the Federal entity that use such frequencies.
                    ``(C) The frequency bands used by such facilities or 
                systems, described by geographic location.
                    ``(D) The steps to be taken by the Federal entity to 
                relocate its spectrum use from such frequencies or to 
                share such frequencies, including timelines for specific 
                geographic locations in sufficient detail to indicate 
                when use of such frequencies at such locations will be 
                discontinued by the Federal entity or shared between the 
                Federal entity and non-Federal users.
                    ``(E) The specific interactions between the eligible 
                Federal entity and the NTIA needed to implement the 
                transition plan.
                    ``(F) The name of the officer or employee of the 
                Federal entity who is responsible for the relocation or 
                sharing efforts of the entity and who is authorized to 
                meet and negotiate with non-Federal users regarding the 
                transition.
                    ``(G) The plans and timelines of the Federal entity 
                for--
                          ``(i) using funds received from the Spectrum 
                      Relocation Fund established by section 118;

[[Page 126 STAT. 249]]

                          ``(ii) procuring new equipment and additional 
                      personnel needed for relocation or sharing;
                          ``(iii) field-testing and deploying new 
                      equipment needed for relocation or sharing; and
                          ``(iv) hiring and relying on contract 
                      personnel, if any, needed for relocation or 
                      sharing.
                    ``(H) Factors that could hinder fulfillment of the 
                transition plan by the Federal entity.
            ``(3) Technical panel.--
                    ``(A) Establishment.--There is established within 
                the NTIA a panel to be known as the Technical Panel.
                    ``(B) Membership.--
                          ``(i) Number and appointment.--The Technical 
                      Panel shall be composed of 3 members, to be 
                      appointed as follows:
                                    ``(I) One member to be appointed by 
                                the Director of the Office of Management 
                                and Budget (in this subsection referred 
                                to as `OMB').
                                    ``(II) One member to be appointed by 
                                the Assistant Secretary.
                                    ``(III) One member to be appointed 
                                by the Chairman of the Commission.
                          ``(ii) Qualifications.--Each member of the 
                      Technical Panel shall be a radio engineer or a 
                      technical expert.
                          ``(iii) Initial appointment.--
                      The <<NOTE: Deadline.>> initial members of the 
                      Technical Panel shall be appointed not later than 
                      180 days after the date of the enactment of the 
                      Middle Class Tax Relief and Job Creation Act of 
                      2012.
                          ``(iv) Terms.--The term of a member of the 
                      Technical Panel shall be 18 months, and no 
                      individual may serve more than 1 consecutive term.
                          ``(v) Vacancies.--Any member appointed to fill 
                      a vacancy occurring before the expiration of the 
                      term for which the member's predecessor was 
                      appointed shall be appointed only for the 
                      remainder of that term. A member may serve after 
                      the expiration of that member's term until a 
                      successor has taken office. A vacancy shall be 
                      filled in the manner in which the original 
                      appointment was made.
                          ``(vi) No compensation.--The members of the 
                      Technical Panel shall not receive any compensation 
                      for service on the Technical Panel. If any such 
                      member is an employee of the agency of the 
                      official that appointed such member to the 
                      Technical Panel, compensation in the member's 
                      capacity as such an employee shall not be 
                      considered compensation under this clause.
                    ``(C) Administrative support.--The NTIA shall 
                provide the Technical Panel with the administrative 
                support services necessary to carry out its duties under 
                this subsection and subsection (i).
                    ``(D) Regulations.--
                Not <<NOTE: Deadline. Notice. Public comment.>> later 
                than 180 days after the date of the enactment of the 
                Middle Class Tax Relief and Job Creation Act of 2012, 
                the NTIA shall, after public notice and comment and 
                subject to approval by the Director

[[Page 126 STAT. 250]]

                of OMB, adopt regulations to govern the workings of the 
                Technical Panel.
                    ``(E) Certain requirements inapplicable.--The 
                Federal Advisory Committee Act (5 U.S.C. App.) and 
                sections 552 and 552b of title 5, United States Code, 
                shall not apply to the Technical Panel.
            ``(4) <<NOTE: Deadline. Reports.>>  Review of plan by 
        technical panel.--
                    ``(A) In general.--Not later than 30 days after the 
                submission of the plan under paragraph (1), the 
                Technical Panel shall submit to the NTIA and to the 
                Federal entity a report on the sufficiency of the plan, 
                including whether the plan includes the information 
                required by paragraph (2) and an assessment of the 
                reasonableness of the proposed timelines and estimated 
                relocation or sharing costs, including the costs of any 
                proposed expansion of the capabilities of a Federal 
                system in connection with relocation or sharing.
                    ``(B) Insufficiency of plan.--If the Technical Panel 
                finds the plan insufficient, the Federal entity shall, 
                not later than 90 days after the submission of the 
                report by the Technical Panel under subparagraph (A), 
                submit to the Technical Panel a revised plan. Such 
                revised plan shall be treated as a plan submitted under 
                paragraph (1).
            ``(5) Publication of transition plan.--
        Not <<NOTE: Deadline. Public information. Web posting.>> later 
        than 120 days before the commencement of the auction described 
        in paragraph (1), the NTIA shall make the transition plan 
        publicly available on its website.
            ``(6) Updates of transition plan.--As the Federal entity 
        implements the transition plan, it shall periodically update the 
        plan to reflect any changed circumstances, including changes in 
        estimated relocation or sharing costs or the timeline for 
        relocation or sharing. The NTIA shall make the updates available 
        on its website.
            ``(7) Classified and other sensitive information.--
                    ``(A) Classified information.--If any of the 
                information required to be included in the transition 
                plan of a Federal entity is classified information (as 
                defined in section 798(b) of title 18, United States 
                Code), the entity shall--
                          ``(i) include in the plan--
                                    ``(I) an explanation of the 
                                exclusion of any such information, which 
                                shall be as specific as possible; and
                                    ``(II) all relevant non-classified 
                                information that is available; and
                          ``(ii) discuss as a factor under paragraph 
                      (2)(H) the extent of the classified information 
                      and the effect of such information on the 
                      implementation of the relocation or sharing 
                      arrangement.
                    ``(B) Regulations.--Not <<NOTE: Deadlines.>> later 
                than 180 days after the date of the enactment of the 
                Middle Class Tax Relief and Job Creation Act of 2012, 
                the NTIA, in consultation with the Director of OMB and 
                the Secretary of Defense, shall adopt regulations to 
                ensure that the information publicly released under 
                paragraph (5) or (6) does not contain classified 
                information or other sensitive information.

    ``(i) Dispute Resolution Process.--

[[Page 126 STAT. 251]]

            ``(1) In general.--If a dispute arises between a Federal 
        entity and a non-Federal user regarding the execution, timing, 
        or cost of the transition plan submitted by the Federal entity 
        under subsection (h)(1), the Federal entity or the non-Federal 
        user may request that the NTIA establish a dispute resolution 
        board to resolve the dispute.
            ``(2) Establishment of board.--
                    ``(A) In general.--If the NTIA receives a request 
                under paragraph (1), it shall establish a dispute 
                resolution board.
                    ``(B) Membership and appointment.--The dispute 
                resolution board shall be composed of 3 members, as 
                follows:
                          ``(i) A representative of the Office of 
                      Management and Budget (in this subsection referred 
                      to as `OMB'), to be appointed by the Director of 
                      OMB.
                          ``(ii) A representative of the NTIA, to be 
                      appointed by the Assistant Secretary.
                          ``(iii) A representative of the Commission, to 
                      be appointed by the Chairman of the Commission.
                    ``(C) Chair.--The representative of OMB shall be the 
                Chair of the dispute resolution board.
                    ``(D) Vacancies.--Any vacancy in the dispute 
                resolution board shall be filled in the manner in which 
                the original appointment was made.
                    ``(E) No compensation.--The members of the dispute 
                resolution board shall not receive any compensation for 
                service on the board. If any such member is an employee 
                of the agency of the official that appointed such member 
                to the board, compensation in the member's capacity as 
                such an employee shall not be considered compensation 
                under this subparagraph.
                    ``(F) Termination of board.--The dispute resolution 
                board shall be terminated after it rules on the dispute 
                that it was established to resolve and the time for 
                appeal of its decision under paragraph (7) has expired, 
                unless an appeal has been taken under such paragraph. If 
                such an appeal has been taken, the board shall continue 
                to exist until the appeal process has been exhausted and 
                the board has completed any action required by a court 
                hearing the appeal.
            ``(3) Procedures.--The dispute resolution board shall meet 
        simultaneously with representatives of the Federal entity and 
        the non-Federal user to discuss the dispute. The dispute 
        resolution board may require the parties to make written 
        submissions to it.
            ``(4) Deadline for decision.--The dispute resolution board 
        shall rule on the dispute not later than 30 days after the 
        request was made to the NTIA under paragraph (1).
            ``(5) Assistance from technical panel.--The Technical Panel 
        established under subsection (h)(3) shall provide the dispute 
        resolution board with such technical assistance as the board 
        requests.
            ``(6) Administrative support.--The NTIA shall provide the 
        dispute resolution board with the administrative support 
        services necessary to carry out its duties under this 
        subsection.
            ``(7) Appeals.--A <<NOTE: Deadline.>> decision of the 
        dispute resolution board may be appealed to the United States 
        Court of Appeals for

[[Page 126 STAT. 252]]

        the District of Columbia Circuit by filing a notice of appeal 
        with that court not later than 30 days after the date of such 
        decision. Each party shall bear its own costs and expenses, 
        including attorneys' fees, for any appeal under this paragraph.
            ``(8) Regulations.--Not <<NOTE: Deadline. Notice. Public 
        comments.>> later than 180 days after the date of the enactment 
        of the Middle Class Tax Relief and Job Creation Act of 2012, the 
        NTIA shall, after public notice and comment and subject to 
        approval by OMB, adopt regulations to govern the working of any 
        dispute resolution boards established under paragraph (2)(A) and 
        the role of the Technical Panel in assisting any such board.
            ``(9) Certain requirements inapplicable.--The Federal 
        Advisory Committee Act (5 U.S.C. App.) and sections 552 and 552b 
        of title 5, United States Code, shall not apply to a dispute 
        resolution board established under paragraph (2)(A).

    ``(j) Relocation Prioritized Over Sharing.--
            ``(1) In general.--In <<NOTE: Determination.>> evaluating a 
        band of frequencies for possible reallocation for exclusive non-
        Federal use or shared use, the NTIA shall give priority to 
        options involving reallocation of the band for exclusive non-
        Federal use and shall choose options involving shared use only 
        when it determines, in consultation with the Director of the 
        Office of Management and Budget, that relocation of a Federal 
        entity from the band is not feasible because of technical or 
        cost constraints.
            ``(2) Notification of congress when sharing chosen.--If the 
        NTIA determines under paragraph (1) that relocation of a Federal 
        entity from the band is not feasible, the NTIA shall notify the 
        Committee on Commerce, Science, and Transportation of the Senate 
        and the Committee on Energy and Commerce of the House of 
        Representatives of the determination, including the specific 
        technical or cost constraints on which the determination is 
        based.''.

    (b) Conforming Amendment.--Section 309(j) of the Communications Act 
of <<NOTE: 47 USC 309.>> 1934 is further amended by striking 
``relocation costs'' each place it appears and inserting ``relocation or 
sharing costs''.
SEC. 6702. SPECTRUM RELOCATION FUND.

    Section 118 of the National Telecommunications and Information 
Administration Organization Act (47 U.S.C. 928) is amended--
            (1) by striking ``relocation costs'' each place it appears 
        and inserting ``relocation or sharing costs'';
            (2) by amending subsection (c) to read as follows:

    ``(c) Use of Funds.--The amounts in the Fund from auctions of 
eligible frequencies are authorized to be used to pay relocation or 
sharing costs of an eligible Federal entity incurring such costs with 
respect to relocation from or sharing of those frequencies.'';
            (3) in subsection (d)--
                    (A) in paragraph (2)--
                          (i) in subparagraph (A), by inserting ``or 
                      sharing'' before the semicolon;
                          (ii) in subparagraph (B), by inserting ``or 
                      sharing'' before the period at the end;
                          (iii) by redesignating subparagraphs (A) and 
                      (B) as subparagraphs (B) and (C), respectively; 
                      and
                          (iv) by inserting before subparagraph (B), as 
                      so redesignated, the following:

[[Page 126 STAT. 253]]

                    ``(A) unless the eligible Federal entity has 
                submitted a transition plan to the NTIA as required by 
                paragraph (1) of section 113(h), the Technical Panel has 
                found such plan sufficient under paragraph (4) of such 
                section, and the NTIA has made available such plan on 
                its website as required by paragraph (5) of such 
                section;'';
                    (B) by striking paragraph (3); and
                    (C) by adding at the end the following:
            ``(3) Transfers for pre-auction costs.--
                    ``(A) In general.--Subject to subparagraph (B), the 
                Director of OMB may transfer to an eligible Federal 
                entity, at any time (including prior to a scheduled 
                auction), such sums as may be available in the Fund to 
                pay relocation or sharing costs related to pre-auction 
                estimates or research, as such costs are described in 
                section 113(g)(3)(A)(iii).
                    ``(B) Notification.--No funds may be transferred 
                pursuant to subparagraph (A) unless--
                          ``(i) <<NOTE: Certification.>> the 
                      notification provided under paragraph (2)(C) 
                      includes a certification from the Director of OMB 
                      that--
                                    ``(I) funds transferred before an 
                                auction will likely allow for timely 
                                implementation of relocation or sharing, 
                                thereby increasing net expected auction 
                                proceeds by an amount not less than the 
                                time value of the amount of funds 
                                transferred; and
                                    ``(II) <<NOTE: Deadline.>> the 
                                auction is intended to occur not later 
                                than 5 years after transfer of funds; 
                                and
                          ``(ii) the transition plan submitted by the 
                      eligible Federal entity under section 113(h)(1) 
                      provides--
                                    ``(I) to the fullest extent 
                                possible, for sharing and coordination 
                                of eligible frequencies with non-Federal 
                                users, including reasonable 
                                accommodation by the eligible Federal 
                                entity for the use of eligible 
                                frequencies by non-Federal users during 
                                the period that the entity is relocating 
                                its spectrum uses (in this clause 
                                referred to as the `transition period');
                                    ``(II) for non-Federal users to be 
                                able to use eligible frequencies during 
                                the transition period in geographic 
                                areas where the eligible Federal entity 
                                does not use such frequencies;
                                    ``(III) <<NOTE: Deadline.>> that the 
                                eligible Federal entity will, during the 
                                transition period, make itself available 
                                for negotiation and discussion with non-
                                Federal users not later than 30 days 
                                after a written request therefor; and
                                    ``(IV) that the eligible Federal 
                                entity will, during the transition 
                                period, make available to a non-Federal 
                                user with appropriate security 
                                clearances any classified information 
                                (as defined in section 798(b) of title 
                                18, United States Code) regarding the 
                                relocation process, on a need-to-know 
                                basis, to assist the non-Federal user in 
                                the relocation process with such 
                                eligible Federal entity or other 
                                eligible Federal entities.
                    ``(C) Applicability to certain costs.--

[[Page 126 STAT. 254]]

                          ``(i) In general.--
                      The <<NOTE: Deadline.>> Director of OMB may 
                      transfer under subparagraph (A) not more than 
                      $10,000,000 for costs incurred after June 28, 
                      2010, but before the date of the enactment of the 
                      Middle Class Tax Relief and Job Creation Act of 
                      2012.
                          ``(ii) Supplement not supplant.--Any amounts 
                      transferred by the Director of OMB pursuant to 
                      clause (i) shall be in addition to any amounts 
                      that the Director of OMB may transfer for costs 
                      incurred on or after the date of the enactment of 
                      the Middle Class Tax Relief and Job Creation Act 
                      of 2012.
            ``(4) Reversion of unused funds.--Any <<NOTE: Deadline. Time 
        period. Notification.>> amounts in the Fund that are remaining 
        after the payment of the relocation or sharing costs that are 
        payable from the Fund shall revert to and be deposited in the 
        general fund of the Treasury, for the sole purpose of deficit 
        reduction, not later than 8 years after the date of the deposit 
        of such proceeds to the Fund, unless within 60 days in advance 
        of the reversion of such funds, the Director of OMB, in 
        consultation with the NTIA, notifies the congressional 
        committees described in paragraph (2)(C) that such funds are 
        needed to complete or to implement current or future relocation 
        or sharing arrangements.'';
            (4) in subsection (e)--
                    (A) in paragraph (1)(B)--
                          (i) in clause (i), by striking ``subsection 
                      (d)(2)(A)'' and inserting ``subsection 
                      (d)(2)(B)''; and
                          (ii) in clause (ii), by striking ``subsection 
                      (d)(2)(B)'' and inserting ``subsection 
                      (d)(2)(C)''; and
                    (B) in paragraph (2)--
                          (i) by striking ``entity's relocation'' and 
                      inserting ``relocation of the entity or 
                      implementation of the sharing arrangement by the 
                      entity'';
                          (ii) by inserting ``or the implementation of 
                      such arrangement'' after ``such relocation''; and
                          (iii) by striking ``subsection (d)(2)(A)'' and 
                      inserting ``subsection (d)(2)(B)''; and
            (5) by adding at the end the following:

    ``(f) Additional Payments From Fund.--
            ``(1) Amounts available.--
        Notwithstanding <<NOTE: Appropriation 
        authorization.>> subsections (c) through (e), after the date of 
        the enactment of the Middle Class Tax Relief and Job Creation 
        Act of 2012, there are appropriated from the Fund and available 
        to the Director of OMB for use in accordance with paragraph (2) 
        not more than 10 percent of the amounts deposited in the Fund 
        from auctions occurring after such date of enactment of licenses 
        for the use of spectrum vacated by eligible Federal entities.
            ``(2) Use of amounts.--
                    ``(A) In general.--The Director of OMB, in 
                consultation with the NTIA, may use amounts made 
                available under paragraph (1) to make payments to 
                eligible Federal entities that are implementing a 
                transition plan submitted under section 113(h)(1) in 
                order to encourage such entities to complete the 
                implementation more quickly, thereby encouraging timely 
                access to the eligible frequencies that are being 
                reallocated for exclusive non-Federal use or shared use.

[[Page 126 STAT. 255]]

                    ``(B) Conditions.--In the case of any payment by the 
                Director of OMB under subparagraph (A)--
                          ``(i) such payment shall be based on the 
                      market value of the eligible frequencies, the 
                      timeliness with which the eligible Federal entity 
                      clears its use of such frequencies, and the need 
                      for such frequencies in order for the entity to 
                      conduct its essential missions;
                          ``(ii) the eligible Federal entity shall use 
                      such payment for the purposes specified in clauses 
                      (i) through (v) of section 113(g)(3)(A) to achieve 
                      comparable capability of systems affected by the 
                      reallocation of eligible frequencies from Federal 
                      use to exclusive non-Federal use or to shared use;
                          ``(iii) such payment may not be made if the 
                      amount remaining in the Fund after such payment 
                      will be less than 10 percent of the winning bids 
                      in the auction of the spectrum with respect to 
                      which the Federal entity is incurring relocation 
                      or sharing costs; and
                          ``(iv) <<NOTE: Time 
                      period. Notification.>> such payment may not be 
                      made until 30 days after the Director of OMB has 
                      notified the congressional committees described in 
                      subsection (d)(2)(C).

    ``(g) Restriction on Use of Funds.--No amounts in the Fund on the 
day before the date of the enactment of the Middle Class Tax Relief and 
Job Creation Act of 2012 may be used for any purpose except--
            ``(1) to pay the relocation or sharing costs incurred by 
        eligible Federal entities in order to relocate from the 
        frequencies the auction of which generated such amounts; or
            ``(2) to pay relocation or sharing costs related to pre-
        auction estimates or research, in accordance with subsection 
        (d)(3).''.
SEC. 6703. NATIONAL SECURITY AND OTHER SENSITIVE INFORMATION.

    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. <<NOTE: 47 USC 929.>> NATIONAL SECURITY AND OTHER 
                        SENSITIVE INFORMATION.

    ``(a) Determination.--If the <<NOTE: Notification.>> head of an 
Executive agency (as defined in section 105 of title 5, United States 
Code) determines that public disclosure of any information contained in 
a notification or report required by section 113 or 118 would reveal 
classified national security information, or other information for which 
there is a legal basis for nondisclosure and the public disclosure of 
which would be detrimental to national security, homeland security, or 
public safety or would jeopardize a law enforcement investigation, the 
head of the Executive agency shall notify the Assistant Secretary of 
that determination prior to the release of such information.

    ``(b) Inclusion in Annex.--The head of the Executive agency shall 
place the information with respect to which a determination was made 
under subsection (a) in a separate annex to the notification or report 
required by section 113 or 118. The annex shall be provided to the 
subcommittee of primary jurisdiction of the congressional committee of 
primary jurisdiction in accordance with appropriate national security 
stipulations but shall not be disclosed to the public or provided to any 
unauthorized person through any means.''.

[[Page 126 STAT. 256]]

                   TITLE VII--MISCELLANEOUS PROVISIONS

SEC. 7001. <<NOTE: 26 USC 6655 note.>> REPEAL OF CERTAIN SHIFTS IN 
                          THE TIMING OF CORPORATE ESTIMATED TAX 
                          PAYMENTS.

    The following provisions of law (and any modification of any such 
provision which is contained in any other provision of law) shall not 
apply with respect to any installment of corporate estimated tax:
            (1) Section 201(b) of the Corporate Estimated Tax Shift Act 
        of 2009.
            (2) Section 561 of the Hiring Incentives to Restore 
        Employment Act.
            (3) Section 505 of the United States-Korea Free Trade 
        Agreement Implementation Act.
            (4) Section 603 of the United States-Colombia Trade 
        Promotion Agreement Implementation Act.
            (5) Section 502 of the United States-Panama Trade Promotion 
        Agreement Implementation Act.
SEC. 7002. REPEAL OF REQUIREMENT RELATING TO TIME FOR REMITTING 
                          CERTAIN MERCHANDISE PROCESSING FEES.

    (a) Repeal.--The Trade Adjustment Assistance Extension Act of 2011 
(title II of Public Law 112-40; 125 Stat. 402) is amended by 
striking <<NOTE: 19 USC 58c note.>> section 263.

    (b) Clerical Amendment.--The table of contents for such Act is 
amended by striking the item relating to section 263.
SEC. 7003. TREATMENT FOR PAYGO PURPOSES.

    The budgetary effects of this Act shall not be entered on either 
PAYGO scorecard maintained pursuant to section 4(d) of the Statutory 
Pay-As-You-Go Act of 2010.

    Approved February 22, 2012.

LEGISLATIVE HISTORY--H.R. 3630:
---------------------------------------------------------------------------

HOUSE REPORTS: No. 112-399 (Comm. of Conference).
CONGRESSIONAL RECORD:
                                                        Vol. 157 (2011):
                                    Dec. 13, considered and passed 
                                        House.
                                    Dec. 17, considered and passed 
                                        Senate, amended.
                                                        Vol. 158 (2012):
                                    Feb. 17, House and Senate agreed to 
                                        conference report.

                                  <all>
```