IB 

Union Calendar No. 502 

113TH CONGRESS 

2D SESSION H. R. 3674 

[Report No. 113–670, Part I] 

To amend the National Telecommunications and Information Administration 

Organization Act to provide incentives for the reallocation of Federal 

Government spectrum for commercial use, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

DECEMBER 9, 2013 

Mr. GUTHRIE (for himself, Ms. MATSUI, Mr. WAXMAN, Mr. WALDEN, and Ms. 

ESHOO) introduced the following bill; which was referred to the Committee on Energy and Commerce, and in addition to the Committee on 

Armed Services, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned 

DECEMBER 12, 2014 

Reported from the Committee on Energy and Commerce 

DECEMBER 12, 2014 

The Committee on Armed Services discharged; committed to the Committee 

of the Whole House on the State of the Union and ordered to be printed 


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•HR 3674 RH

A BILL 

To amend the National Telecommunications and Information 

Administration Organization Act to provide incentives 

for the reallocation of Federal Government spectrum for 

commercial use, and for other purposes. 


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1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Federal Spectrum In5 centive Act of 2013’’. 

6 SEC. 2. FEDERAL SPECTRUM INCENTIVES. 

7 (a) NOTICE TO COMMISSION.— 

8 (1) IN GENERAL.—Section 113(g)(4) of the Na9 tional Telecommunications and Information Admin10 istration Organization Act (47 U.S.C. 923(g)(4)) is 

11 amended— 

12 (A) by striking the heading and inserting 

13 ‘‘NOTICE TO COMMISSION.—’’; 

14 (B) in the second sentence of subpara15 graph (A), by striking ‘‘shall notify the Com16 mission’’ and all that follows and inserting the 

17 following: ‘‘shall notify the Commission— 

18 ‘‘(i) of estimated relocation or sharing 

19 costs and timelines for such relocation or 

20 sharing; or 

21 ‘‘(ii) that, instead of relocation or 

22 sharing costs under this subsection and 

23 section 118, a Federal entity will receive 

24 payment under section 120 because such 

25 entity is— 


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1 ‘‘(I) discontinuing the operations 

2 that the Federal entity conducts on 

3 such eligible frequencies without relo4 cating such operations to other fre5 quencies; or 

6 ‘‘(II) relocating such operations 

7 to frequencies assigned to another 

8 Federal entity in order for such enti9 ties to share such frequencies.’’; and 

10 (C) by adding at the end the following: 

11 ‘‘(D) This subsection and section 118 shall 

12 not apply with respect to the discontinuance of 

13 operations on eligible frequencies or the reloca14 tion of such operations by a Federal entity after 

15 the Commission receives notice under subpara16 graph (A)(ii) with respect to such discontinu17 ance or relocation.’’. 

18 (2) CONFORMING AMENDMENTS.—Section 

19 113(g) of the National Telecommunications and In20 formation Administration Organization Act (47 

21 U.S.C. 923(g)) is amended— 

22 (A) in paragraph (3)(A)(iii)(I), by striking 

23 ‘‘paragraph (4)(A)’’ and inserting ‘‘paragraph 

24 (4)(A)(i)’’; 

25 (B) in paragraph (4)— 


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1 (i) in subparagraph (B), by striking 

2 ‘‘subparagraph (A)’’ and inserting ‘‘sub3 paragraph (A)(i)’’; and 

4 (ii) in subparagraph (C), by striking 

5 ‘‘subparagraphs (A) and (B)’’ and insert6 ing ‘‘subparagraphs (A)(i) and (B)’’; and 

7 (C) in paragraph (5), by striking ‘‘para8 graph (4)(A)’’ and inserting ‘‘paragraph 

9 (4)(A)(i)’’. 

10 (b) TRANSITION PLANS.—Section 113(h) of the Na11 tional Telecommunications and Information Administra12 tion Organization Act (47 U.S.C. 923(h)) is amended— 

13 (1) in the heading, by striking ‘‘RELOCATION

14 OR SHARING’’; 

15 (2) by amending paragraph (1) to read as fol16 lows: 

17 ‘‘(1) DEVELOPMENT OF TRANSITION PLAN BY

18 FEDERAL ENTITY.— 

19 ‘‘(A) IN GENERAL.—Not later than 240 

20 days before the commencement of any auction 

21 of eligible frequencies described in subsection 

22 (g)(2), a Federal entity authorized to use any 

23 such frequency shall submit to the NTIA and 

24 to the Technical Panel established by paragraph 


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1 (3) a transition plan in which the Federal enti2 ty— 

3 ‘‘(i) declares the intention of such en4 tity— 

5 ‘‘(I) to share such eligible fre6 quencies with a non-Federal user or 

7 to relocate to other frequencies, and 

8 to receive relocation or sharing costs 

9 from the Spectrum Relocation Fund 

10 established by section 118; or 

11 ‘‘(II) to discontinue the oper12 ations that the Federal entity con13 ducts on such eligible frequencies 

14 without relocating such operations to 

15 other frequencies or to relocate such 

16 operations to frequencies assigned to 

17 another Federal entity in order for 

18 such entities to share such fre19 quencies, and to receive payment from 

20 the Federal Spectrum Incentive Fund 

21 established by section 120; and 

22 ‘‘(ii) describes how the entity will im23 plement the relocation, sharing, or dis24 continuance arrangement. 


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1 ‘‘(B) COMMON FORMAT.—The NTIA shall 

2 specify, after public input, a common format for 

3 all Federal entities to follow in preparing tran4 sition plans under this paragraph.’’; 

5 (3) in paragraph (2)— 

6 (A) in subparagraph (D), by inserting ‘‘, to 

7 discontinue such use,’’ after ‘‘from such fre8 quencies’’; 

9 (B) in subparagraph (F), by inserting ‘‘, 

10 discontinuance,’’ after ‘‘relocation’’; and 

11 (C) in subparagraph (G), by striking ‘‘The 

12 plans’’ and inserting ‘‘To the extent applicable 

13 given the intention declared by the entity under 

14 paragraph (1)(A)(i), the plans’’; 

15 (4) in paragraph (4)(A), by inserting ‘‘(if appli16 cable)’’ after ‘‘timelines and’’; 

17 (5) in paragraph (6)— 

18 (A) by inserting ‘‘(if applicable)’’ after 

19 ‘‘costs’’; and 

20 (B) by inserting ‘‘, discontinuance,’’ after 

21 ‘‘relocation’’ the second place it appears; and 

22 (6) in paragraph (7)(A)(ii), by inserting ‘‘, dis23 continuance,’’ after ‘‘relocation’’. 

24 (c) RELOCATION OR DISCONTINUANCE PRIORITIZED

25 OVER SHARING.—Section 113(j) of the National TeleVerDate Sep 11 2014 21:15 Dec 15, 2014 Jkt 049200 PO 00000 Frm 00007 Fmt 6652 Sfmt 6201 E:\BILLS\H3674.RH H3674

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1 communications and Information Administration Organi2 zation Act (47 U.S.C. 923(j)) is amended— 

3 (1) in the heading, by inserting ‘‘OR DIS4 CONTINUANCE’’ after ‘‘RELOCATION’’; and 

5 (2) by inserting ‘‘or discontinuance of the oper6 ations that the Federal entity conducts on the band’’ 

7 after ‘‘from the band’’ each place it appears. 

8 (d) DEPOSIT OF AUCTION PROCEEDS.—Section 

9 309(j)(8) of the Communications Act of 1934 (47 U.S.C. 

10 309(j)(8)) is amended— 

11 (1) in subparagraph (C)(i), by striking 

12 ‘‘(D)(ii)’’ and inserting ‘‘(D)(ii), (D)(iii)’’; and 

13 (2) in subparagraph (D)— 

14 (A) in clause (i), by striking ‘‘clause (ii)’’ 

15 and inserting ‘‘clauses (ii) and (iii)’’; and 

16 (B) by adding at the end the following: 

17 ‘‘(iii) FEDERAL SPECTRUM INCEN18 TIVES.—Notwithstanding subparagraph 

19 (A) and except as provided in subpara20 graph (B) and clause (ii) of this subpara21 graph, in the case of proceeds (including 

22 deposits and upfront payments from suc23 cessful bidders) attributable to the auction 

24 of eligible frequencies described in section 

25 113(g)(2) of the National TelecommuniVerDate Sep 11 2014 21:15 Dec 15, 2014 Jkt 049200 PO 00000 Frm 00008 Fmt 6652 Sfmt 6201 E:\BILLS\H3674.RH H3674

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1 cations and Information Administration 

2 Organization Act with respect to which the 

3 Commission has received notice under sec4 tion 113(g)(4)(A)(ii) of such Act, 1 per5 cent of such proceeds shall be deposited in 

6 the Federal Spectrum Incentive Fund es7 tablished by section 120 of such Act and 

8 shall be available in accordance with such 

9 section. The remainder of such proceeds 

10 shall be deposited in the general fund of 

11 the Treasury, where such proceeds shall be 

12 dedicated for the sole purpose of deficit re13 duction.’’. 

14 (e) FEDERAL SPECTRUM INCENTIVE FUND.—Part B 

15 of the National Telecommunications and Information Ad16 ministration Organization Act (47 U.S.C. 921 et seq.) is 

17 amended by adding at the end the following: 

18 ‘‘SEC. 120. FEDERAL SPECTRUM INCENTIVE FUND. 

19 ‘‘(a) ESTABLISHMENT.—There is established in the 

20 Treasury of the United States a fund to be known as the 

21 Federal Spectrum Incentive Fund (in this section referred 

22 to as the ‘Fund’), which shall be administered by the Of23 fice of Management and Budget (in this section referred 

24 to as ‘OMB’), in consultation with the NTIA. 


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1 ‘‘(b) TRANSFER OF FUNDS.—The Director of OMB 

2 shall transfer from the Fund to a Federal entity an 

3 amount equal to the amount deposited in accordance with 

4 section 309(j)(8)(D)(iii) of the Communications Act of 

5 1934 that is attributable to the auction of eligible fre6 quencies described in section 113(g)(2) of this Act being 

7 vacated by such entity. Such amount shall be available to 

8 the Federal entity in accordance with subsection (c) and 

9 shall remain available until expended. 

10 ‘‘(c) USE OF FUNDS.—A Federal entity may use an 

11 amount transferred under subsection (b) for the following 

12 purposes: 

13 ‘‘(1) OFFSET OF SEQUESTRATION.—Any pur14 poses permitted under the terms and conditions of 

15 an appropriations account of the Federal entity that 

16 was subject to sequestration for any fiscal year 

17 under the Balanced Budget and Emergency Deficit 

18 Control Act of 1985. The amount used for such pur19 poses under this paragraph may not exceed the 

20 amount by which the amount available to such entity 

21 under such account was reduced by sequestration for 

22 such fiscal year. 

23 ‘‘(2) TRANSFER TO INCUMBENT FEDERAL EN24 TITY.—In the case of a Federal entity that is relo25 cating operations to frequencies assigned to an inVerDate Sep 11 2014 21:15 Dec 15, 2014 Jkt 049200 PO 00000 Frm 00010 Fmt 6652 Sfmt 6201 E:\BILLS\H3674.RH H3674

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1 cumbent Federal entity in order for such entities to 

2 share such frequencies, to transfer an amount to the 

3 incumbent Federal entity for any purposes permitted 

4 under this subsection (except this paragraph). The 

5 transferred amount shall remain available to the in6 cumbent Federal entity until expended. 

7 ‘‘(d) PROHIBITION ON DUPLICATIVE PAYMENTS.—If 

8 the Commission receives notice under section 

9 113(g)(4)(A)(ii) of a discontinuance of operations on or 

10 relocation from eligible frequencies by a Federal entity 

11 that has received, from the Spectrum Relocation Fund in 

12 accordance with section 118(d)(3), relocation or sharing 

13 costs related to pre-auction estimates or research with re14 spect to such frequencies, the Director of OMB shall de15 duct from the amount to be transferred to such entity 

16 under subsection (b) an amount equal to such costs and 

17 shall transfer such amount to the Spectrum Relocation 

18 Fund.’’. 

19 (f) DEPARTMENT OF DEFENSE SPECTRUM.—Section 

20 1062(b) of the National Defense Authorization Act for 

21 Fiscal Year 2000 (Public Law 106–65) does not apply to 

22 frequencies with respect to which the Commission has re23 ceived notice under section 113(g)(4)(A)(ii) of the Na24 tional Telecommunications and Information Administra25 tion Organization Act (47 U.S.C. 923(g)(4)(A)(ii)). 


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1 SEC. 3. COSTS OF INCUMBENT FEDERAL ENTITIES RE2 LATED TO SPECTRUM SHARING. 

3 (a) DESCRIPTION OF ELIGIBLE FEDERAL ENTI4 TIES.—Section 113(g)(1) of the National Telecommuni5 cations and Information Administration Organization Act 

6 (47 U.S.C. 923(g)(1)) is amended— 

7 (1) by striking ‘‘authorized to use a band of eli8 gible frequencies described in paragraph (2)’’; 

9 (2) by striking ‘‘spectrum frequencies’’ the first 

10 place it appears and inserting ‘‘eligible frequencies 

11 described in paragraph (2)’’; and 

12 (3) by striking ‘‘spectrum frequencies’’ the sec13 ond place it appears and inserting ‘‘eligible fre14 quencies described in such paragraph’’. 

15 (b) DEFINITION OF RELOCATION OR SHARING

16 COSTS.—Section 113(g)(3)(A) of the National Tele17 communications and Information Administration Organi18 zation Act (47 U.S.C. 923(g)(3)(A)) is amended— 

19 (1) in clause (iv)(II), by striking ‘‘and’’ at the 

20 end; 

21 (2) in clause (v), by striking the period and in22 serting ‘‘; and’’; and 

23 (3) by adding at the end the following: 

24 ‘‘(vi) the costs incurred by an incum25 bent Federal entity to accommodate shar26 ing the spectrum frequencies assigned to 


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1 such entity with a Federal entity the oper2 ations of which are being relocated from el3 igible frequencies described in paragraph 

4 (2), unless the Commission receives notice 

5 under paragraph (4)(A)(ii)(II) with respect 

6 to the relocation of such operations.’’. 

7 (c) SPECTRUM RELOCATION FUND.—Section 118 of 

8 the National Telecommunications and Information Ad9 ministration Organization Act (47 U.S.C. 928) is amend10 ed— 

11 (1) in subsection (c), by striking ‘‘with respect 

12 to’’ and all that follows and inserting the following: 

13 ‘‘with respect to— 

14 ‘‘(1) relocation from or sharing of such eligible 

15 frequencies; or 

16 ‘‘(2) in the case of an incumbent Federal entity 

17 described in section 113(g)(3)(A)(vi), accommo18 dating sharing the spectrum frequencies assigned to 

19 such entity with a Federal entity the operations of 

20 which are being relocated from such eligible fre21 quencies.’’; and 

22 (2) in subsection (d)— 

23 (A) in paragraph (2)(A), by inserting ‘‘(or, 

24 in the case of an incumbent Federal entity de25 scribed in section 113(g)(3)(A)(vi), the eligible 


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1 Federal entity the operations of which are being 

2 relocated has submitted such a plan)’’ after 

3 ‘‘transition plan’’; and 

4 (B) in paragraph (3)(B)(ii), by inserting 

5 ‘‘except in the case of an incumbent Federal en6 tity described in section 113(g)(3)(A)(vi),’’ be7 fore ‘‘the transition plan’’. 


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Union Calendar No. 502 

113TH CONGRESS 

2D SESSION H. R. 3674 

[Report No. 113–670, Part I] 

A BILL 

To amend the National Telecommunications and 

for other purposes. Government spectrum for commercial use, and provide incentives for the reallocation of Federal Information Administration Organization Act to 

DECEMBER 12, 2014 

Reported from the Committee on Energy and Commerce 

DECEMBER 12, 2014 

The Committee on Armed Services discharged; committed 

the Union and ordered to be printed to the Committee of the Whole House on the State of 


tkelley on DSK3SPTVN1PROD with BILLS