II 

108TH CONGRESS 

2D SESSION H. R. 5419 

IN THE SENATE OF THE UNITED STATES 

NOVEMBER 20, 2004 

Received 

AN ACT 

To amend the National Telecommunications and Information 

Administration Organization Act to facilitate the reallocation of spectrum from governmental to commercial 

users; to improve, enhance, and promote the Nation’s 

homeland security, public safety, and citizen activated 

emergency response capabilities through the use of enhanced 911 services, to further upgrade Public Safety 

Answering Point capabilities and related functions in 

receiving E–911 calls, and to support in the construction 

and operation of a ubiquitous and reliable citizen activated system; and to provide that funds received as universal service contributions under section 254 of the 

Communications Act of 1934 and the universal service 

support programs established pursuant thereto are not 

subject to certain provisions of title 31, United States 

Code, commonly known as the Antideficiency Act, for 

a period of time. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 
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1 TITLE I—E–911 

2 SEC. 101. SHORT TITLE. 

3 This title may be cited as the ‘‘Ensuring Needed Help 

4 Arrives Near Callers Employing 911 Act of 2004’’ or the 

5 ‘‘ENHANCE 911 Act of 2004’’. 

6 SEC. 102. FINDINGS. 

7 The Congress finds that— 

8 (1) for the sake of our Nation’s homeland secu9 rity and public safety, a universal emergency tele10 phone number (911) that is enhanced with the most 

11 modern and state-of-the-art telecommunications ca12 pabilities possible should be available to all citizens 

13 in all regions of the Nation; 

14 (2) enhanced emergency communications re15 quire Federal, State, and local government resources 

16 and coordination; 

17 (3) any funds that are collected from fees im18 posed on consumer bills for the purposes of funding 

19 911 services or enhanced 911 should go only for the 

20 purposes for which the funds are collected; and 

21 (4) enhanced 911 is a high national priority 

22 and it requires Federal leadership, working in co23 operation with State and local governments and with 

24 the numerous organizations dedicated to delivering 

25 emergency communications services. 
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1 SEC. 103. PURPOSES. 

2 The purposes of this title are— 

3 (1) to coordinate 911 services and E–911 serv4 ices, at the Federal, State, and local levels; and 

5 (2) to ensure that funds collected on tele6 communications bills for enhancing emergency 911 

7 services are used only for the purposes for which the 

8 funds are being collected. 

9 SEC. 104. COORDINATION OF E–911 IMPLEMENTATION. 

10 Part C of title I of the National Telecommunications 

11 and Information Administration Organization Act (47 

12 U.S.C. 901 et seq.) is amended by adding at the end the 

13 following: 

14 ‘‘SEC. 158. COORDINATION OF E–911 IMPLEMENTATION. 

15 ‘‘(a) E–911 IMPLEMENTATION COORDINATION OF16 FICE.— 

17 ‘‘(1) ESTABLISHMENT.—The Assistant Sec18 retary and the Administrator of the National High19 way Traffic Safety Administration shall— 

20 ‘‘(A) establish a joint program to facilitate 

21 coordination and communication between Fed22 eral, State, and local emergency communica23 tions systems, emergency personnel, public safe24 ty organizations, telecommunications carriers, 

25 and telecommunications equipment manufactur-
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1 ers and vendors involved in the implementation 

2 of E–911 services; and 

3 ‘‘(B) create an E-911 Implementation Co4 ordination Office to implement the provisions of 

5 this section. 

6 ‘‘(2) MANAGEMENT PLAN.—The Assistant Sec7 retary and the Administrator shall jointly develop a 

8 management plan for the program established under 

9 this section. Such plan shall include the organiza10 tional structure and funding profiles for the 5-year 

11 duration of the program. The Assistant Secretary 

12 and the Administrator shall, within 90 days after 

13 the date of enactment of this Act, submit the man14 agement plan to the Committees on Energy and 

15 Commerce and Appropriations of the House of Rep16 resentatives and the Committees on Commerce, 

17 Science, and Transportation and Appropriations of 

18 the Senate. 

19 ‘‘(3) PURPOSE OF OFFICE.—The Office shall— 

20 ‘‘(A) take actions, in concert with coordi21 nators designated in accordance with subsection 

22 (b)(3)(A)(ii), to improve such coordination and 

23 communication; 

24 ‘‘(B) develop, collect, and disseminate in25 formation concerning practices, procedures, and 
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1 technology used in the implementation of E– 

2 911 services; 

3 ‘‘(C) advise and assist eligible entities in 

4 the preparation of implementation plans re5 quired under subsection (b)(3)(A)(iii); 

6 ‘‘(D) receive, review, and recommend the 

7 approval or disapproval of applications for 

8 grants under subsection (b); and 

9 ‘‘(E) oversee the use of funds provided by 

10 such grants in fulfilling such implementation 

11 plans. 

12 ‘‘(4) REPORTS.—The Assistant Secretary and 

13 the Administrator shall provide a joint annual report 

14 to Congress by the first day of October of each year 

15 on the activities of the Office to improve coordina16 tion and communication with respect to the imple17 mentation of E–911 services. 

18 ‘‘(b) PHASE II E–911 IMPLEMENTATION GRANTS.— 

19 ‘‘(1) MATCHING GRANTS.—The Assistant Sec20 retary and the Administrator, after consultation with 

21 the Secretary of Homeland Security and the Chair22 man of the Federal Communications Commission, 

23 and acting through the Office, shall provide grants 

24 to eligible entities for the implementation and oper25 ation of Phase II E–911 services. 
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1 ‘‘(2) MATCHING REQUIREMENT.—The Federal 

2 share of the cost of a project eligible for a grant 

3 under this section shall not exceed 50 percent. The 

4 non-Federal share of the cost shall be provided from 

5 non-Federal sources. 

6 ‘‘(3) COORDINATION REQUIRED.—In providing 

7 grants under paragraph (1), the Assistant Secretary 

8 and the Administrator shall require an eligible entity 

9 to certify in its application that— 

10 ‘‘(A) in the case of an eligible entity that 

11 is a State government, the entity— 

12 ‘‘(i) has coordinated its application 

13 with the public safety answering points (as 

14 such term is defined in section 222(h)(4) 

15 of the Communications Act of 1934) lo16 cated within the jurisdiction of such entity; 

17 ‘‘(ii) has designated a single officer or 

18 governmental body of the entity to serve as 

19 the coordinator of implementation of E– 

20 911 services, except that such designation 

21 need not vest such coordinator with direct 

22 legal authority to implement E–911 serv23 ices or manage emergency communications 

24 operations; 
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1 ‘‘(iii) has established a plan for the 

2 coordination and implementation of E–911 

3 services; and 

4 ‘‘(iv) has integrated telecommuni5 cations services involved in the implemen6 tation and delivery of phase II E–911 serv7 ices; or 

8 ‘‘(B) in the case of an eligible entity that 

9 is not a State, the entity has complied with 

10 clauses (i), (iii), and (iv) of subparagraph (A), 

11 and the State in which it is located has com12 plied with clause (ii) of such subparagraph. 

13 ‘‘(4) CRITERIA.—The Assistant Secretary and 

14 the Administrator shall jointly issue regulations 

15 within 180 days after the date of enactment of the 

16 ENHANCE 911 Act of 2004, after a public com17 ment period of not less than 60 days, prescribing the 

18 criteria for selection for grants under this section, 

19 and shall update such regulations as necessary. The 

20 criteria shall include performance requirements and 

21 a timeline for completion of any project to be fi22 nanced by a grant under this section. 

23 ‘‘(c) DIVERSION OF E–911 CHARGES.— 

24 ‘‘(1) DESIGNATED E–911 CHARGES.—For the 

25 purposes of this subsection, the term ‘designated E– 
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1 911 charges’ means any taxes, fees, or other charges 

2 imposed by a State or other taxing jurisdiction that 

3 are designated or presented as dedicated to deliver 

4 or improve E–911 services. 

5 ‘‘(2) CERTIFICATION.—Each applicant for a 

6 matching grant under this section shall certify to the 

7 Assistant Secretary and the Administrator at the 

8 time of application, and each applicant that receives 

9 such a grant shall certify to the Assistant Secretary 

10 and the Administrator annually thereafter during 

11 any period of time during which the funds from the 

12 grant are available to the applicant, that no portion 

13 of any designated E–911 charges imposed by a 

14 State or other taxing jurisdiction within which the 

15 applicant is located are being obligated or expended 

16 for any purpose other than the purposes for which 

17 such charges are designated or presented during the 

18 period beginning 180 days immediately preceding 

19 the date of the application and continuing through 

20 the period of time during which the funds from the 

21 grant are available to the applicant. 

22 ‘‘(3) CONDITION OF GRANT.—Each applicant 

23 for a grant under this section shall agree, as a con24 dition of receipt of the grant, that if the State or 

25 other taxing jurisdiction within which the applicant 
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1 is located, during any period of time during which 

2 the funds from the grant are available to the appli3 cant, obligates or expends designated E–911 charges 

4 for any purpose other than the purposes for which 

5 such charges are designated or presented, all of the 

6 funds from such grant shall be returned to the Of7 fice. 

8 ‘‘(4) PENALTY FOR PROVIDING FALSE INFOR9 MATION.—Any applicant that provides a certification 

10 under paragraph (1) knowing that the information 

11 provided in the certification was false shall— 

12 ‘‘(A) not be eligible to receive the grant 

13 under subsection (b); 

14 ‘‘(B) return any grant awarded under sub15 section (b) during the time that the certification 

16 was not valid; and 

17 ‘‘(C) not be eligible to receive any subse18 quent grants under subsection (b). 

19 ‘‘(d) AUTHORIZATION; TERMINATION.— 

20 ‘‘(1) AUTHORIZATION.—There are authorized to 

21 be appropriated to the Department of Transpor22 tation, for the purposes of grants under the joint 

23 program operated under this section with the De24 partment of Commerce, not more than 

25 $250,000,000 for each of the fiscal years 2005 
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1 through 2009, not more than 5 percent of which for 

2 any fiscal year may be obligated or expended for ad3 ministrative costs. 

4 ‘‘(2) TERMINATION.—The provisions of this 

5 section shall cease to be effective on October 1, 

6 2009. 

7 ‘‘(e) DEFINITIONS.—As used in this section: 

8 ‘‘(1) OFFICE.—The term ‘Office’ means the E– 

9 911 Implementation Coordination Office. 

10 ‘‘(2) ADMINISTRATOR.—The term ‘Adminis11 trator’ means the Administrator of the National 

12 Highway Traffic Safety Administration. 

13 ‘‘(3) ELIGIBLE ENTITY.— 

14 ‘‘(A) IN GENERAL.—The term ‘eligible en15 tity’ means a State or local government or a 

16 tribal organization (as defined in section 4(l) of 

17 the Indian Self-Determination and Education 

18 Assistance Act (25 U.S.C. 450b(l))). 

19 ‘‘(B) INSTRUMENTALITIES.—Such term in20 cludes public authorities, boards, commissions, 

21 and similar bodies created by one or more eligi22 ble entities described in subparagraph (A) to 

23 provide E–911 services. 

24 ‘‘(C) EXCEPTION.—Such term does not in25 clude any entity that has failed to submit the 
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1 most recently required certification under sub2 section (c) within 30 days after the date on 

3 which such certification is due. 

4 ‘‘(4) E–911 SERVICES.—The term ‘E–911 serv5 ices’ means both phase I and phase II enhanced 911 

6 services, as described in section 20.18 of the Com7 mission’s regulations (47 C.F.R. 20.18), as in effect 

8 on the date of enactment of the ENHANCE 911 

9 Act of 2004, or as subsequently revised by the Fed10 eral Communications Commission. 

11 ‘‘(5) PHASE II E–911 SERVICES.—The term 

12 ‘phase II E–911 services’ means only phase II en13 hanced 911 services, as described in such section 

14 20.18 (47 C.F.R. 20.18), as in effect on such date, 

15 or as subsequently revised by the Federal Commu16 nications Commission. 

17 ‘‘(6) STATE.—The term ‘State’ means any 

18 State of the United States, the District of Columbia, 

19 Puerto Rico, the Northern Mariana Islands, and any 

20 territory or possession of the United States.’’. 

21 SEC. 105. GAO STUDY OF STATE AND LOCAL USE OF 911 

22 SERVICE CHARGES. 

23 (a) IN GENERAL.—Within 60 days after the date of 

24 enactment of this Act, the Comptroller General shall ini25 tiate a study of— 
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1 (1) the imposition of taxes, fees, or other 

2 charges imposed by States or political subdivisions 

3 of States that are designated or presented as dedi4 cated to improve emergency communications serv5 ices, including 911 services or enhanced 911 serv6 ices, or related to emergency communications serv7 ices operations or improvements; and 

8 (2) the use of revenues derived from such taxes, 

9 fees, or charges. 

10 (b) REPORT.—Within 18 months after initiating the 

11 study required by subsection (a), the Comptroller General 

12 shall transmit a report on the results of the study to the 

13 Senate Committee on Commerce, Science, and Transpor14 tation and the House of Representatives Committee on 

15 Energy and Commerce setting forth the findings, conclu16 sions, and recommendations, if any, of the study, includ17 ing— 

18 (1) the identity of each State or political sub19 division that imposes such taxes, fees, or other 

20 charges; and 

21 (2) the amount of revenues obligated or ex22 pended by that State or political subdivision for any 

23 purpose other than the purposes for which such 

24 taxes, fees, or charges were designated or presented. 
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1 SEC. 106. REPORT ON THE DEPLOYMENT OF E–911 PHASE II 

2 SERVICES BY TIER III SERVICE PROVIDERS. 

3 Within 90 days after the date of enactment of this 

4 Act, the Federal Communications Commission shall sub5 mit a report to the Committee on Energy and Commerce 

6 of the House of Representatives and the Committee on 

7 Commerce, Science, and Transportation of the Senate de8 tailing— 

9 (1) the number of tier III commercial mobile 

10 service providers that are offering phase II E–911 

11 services; 

12 (2) the number of requests for waivers from 

13 compliance with the Commission’s phase II E–911 

14 service requirements received by the Commission 

15 from such tier III providers; 

16 (3) the number of waivers granted or denied by 

17 the Commission to such tier III providers; 

18 (4) how long each waiver request remained 

19 pending before it was granted or denied; 

20 (5) how many waiver requests are pending at 

21 the time of the filing of the report; 

22 (6) when the pending requests will be granted 

23 or denied; 

24 (7) actions the Commission has taken to reduce 

25 the amount of time a waiver request remains pend26 ing; and 
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1 (8) the technologies that are the most effective 

2 in the deployment of phase II E–911 services by 

3 such tier III providers. 

4 SEC. 107. FCC REQUIREMENTS FOR CERTAIN TIER III CAR5 RIERS. 

6 (a) IN GENERAL.—The Federal Communications 

7 Commission shall act on any petition filed by a qualified 

8 Tier III carrier requesting a waiver of compliance with the 

9 requirements of section 20.18(g)(1)(v) of the Commis10 sion’s rules (47 C.F.R. 20.18(g)(1)(v)) within 100 days 

11 after the Commission receives the petition. The Commis12 sion shall grant the waiver of compliance with the require13 ments of section 20.18(g)(1)(v) of the Commission’s rules 

14 (47 C.F.R. 20.18(g)(1)(v)) requested by the petition if it 

15 determines that strict enforcement of the requirements of 

16 that section would result in consumers having decreased 

17 access to emergency services. 

18 (b) QUALIFIED TIER III CARRIER DEFINED.—In 

19 this section, the term ‘‘qualified Tier III carrier’’ means 

20 a provider of commercial mobile service (as defined in sec21 tion 332(d) of the Communications Act of 1934 (47 

22 U.S.C. 332(d)) that had 500,000 or fewer subscribers as 

23 of December 31, 2001. 
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1 TITLE II—SPECTRUM 

2 RELOCATION 

3 SEC. 201. SHORT TITLE. 

4 This title may be cited as the ‘‘Commercial Spectrum 

5 Enhancement Act’’. 

6 SEC. 202. RELOCATION OF ELIGIBLE FEDERAL ENTITIES 

7 FOR THE REALLOCATION OF SPECTRUM FOR 

8 COMMERCIAL PURPOSES. 

9 Section 113(g) of the National Telecommunications 

10 and Information Administration Organization Act (47 

11 U.S.C. 923(g)) is amended by striking paragraphs (1) 

12 through (3) and inserting the following: 

13 ‘‘(1) ELIGIBLE FEDERAL ENTITIES.—Any Fed14 eral entity that operates a Federal Government sta15 tion assigned to a band of frequencies specified in 

16 paragraph (2) and that incurs relocation costs be17 cause of the reallocation of frequencies from Federal 

18 use to non-Federal use shall receive payment for 

19 such costs from the Spectrum Relocation Fund, in 

20 accordance with section 118 of this Act. For pur21 poses of this paragraph, Federal power agencies ex22 empted under subsection (c)(4) that choose to relo23 cate from the frequencies identified for reallocation 

24 pursuant to subsection (a), are eligible to receive 

25 payment under this paragraph. 
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1 ‘‘(2) ELIGIBLE FREQUENCIES.—The bands of 

2 eligible frequencies for purposes of this section are 

3 as follows: 

4 ‘‘(A) the 216–220 megahertz band, the 

5 1432–1435 megahertz band, the 1710–1755 

6 megahertz band, and the 2385–2390 megahertz 

7 band of frequencies; and 

8 ‘‘(B) any other band of frequencies reallo9 cated from Federal use to non-Federal use after 

10 January 1, 2003, that is assigned by competi11 tive bidding pursuant to section 309(j) of the 

12 Communications Act of 1934 (47 U.S.C. 

13 309(j)), except for bands of frequencies pre14 viously identified by the National Telecommuni15 cations and Information Administration in the 

16 Spectrum Reallocation Final Report, NTIA 

17 Special Publication 95–32 (1995). 

18 ‘‘(3) DEFINITION OF RELOCATION COSTS.—For 

19 purposes of this subsection, the term ‘relocation 

20 costs’ means the costs incurred by a Federal entity 

21 to achieve comparable capability of systems, regard22 less of whether that capability is achieved by relo23 cating to a new frequency assignment or by utilizing 

24 an alternative technology. Such costs include— 
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1 ‘‘(A) the costs of any modification or re2 placement of equipment, software, facilities, op3 erating manuals, training costs, or regulations 

4 that are attributable to relocation; 

5 ‘‘(B) the costs of all engineering, equip6 ment, software, site acquisition and construc7 tion costs, as well as any legitimate and pru8 dent transaction expense, including outside con9 sultants, and reasonable additional costs in10 curred by the Federal entity that are attrib11 utable to relocation, including increased recur12 ring costs associated with the replacement fa13 cilities; 

14 ‘‘(C) the costs of engineering studies, eco15 nomic analyses, or other expenses reasonably 

16 incurred in calculating the estimated relocation 

17 costs that are provided to the Commission pur18 suant to paragraph (4) of this subsection; 

19 ‘‘(D) the one-time costs of any modifica20 tion of equipment reasonably necessary to ac21 commodate commercial use of such frequencies 

22 prior to the termination of the Federal entity’s 

23 primary allocation or protected status, when the 

24 eligible frequencies as defined in paragraph (2) 

25 of this subsection are made available for private 
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1 sector uses by competitive bidding and a Fed2 eral entity retains primary allocation or pro3 tected status in those frequencies for a period 

4 of time after the completion of the competitive 

5 bidding process; and 

6 ‘‘(E) the costs associated with the acceler7 ated replacement of systems and equipment if 

8 such acceleration is necessary to ensure the 

9 timely relocation of systems to a new frequency 

10 assignment. 

11 ‘‘(4) NOTICE TO COMMISSION OF ESTIMATED

12 RELOCATION COSTS.— 

13 ‘‘(A) The Commission shall notify the 

14 NTIA at least 18 months prior to the com15 mencement of any auction of eligible fre16 quencies defined in paragraph (2). At least 6 

17 months prior to the commencement of any such 

18 auction, the NTIA, on behalf of the Federal en19 tities and after review by the Office of Manage20 ment and Budget, shall notify the Commission 

21 of estimated relocation costs and timelines for 

22 such relocation. 

23 ‘‘(B) Upon timely request of a Federal en24 tity, the NTIA shall provide such entity with in25 formation regarding an alternative frequency 
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1 assignment or assignments to which their 

2 radiocommunications operations could be relo3 cated for purposes of calculating the estimated 

4 relocation costs and timelines to be submitted 

5 to the Commission pursuant to subparagraph 

6 (A). 

7 ‘‘(C) To the extent practicable and con8 sistent with national security considerations, 

9 the NTIA shall provide the information re10 quired by subparagraphs (A) and (B) by the ge11 ographic location of the Federal entities’ facili12 ties or systems and the frequency bands used 

13 by such facilities or systems. 

14 ‘‘(5) NOTICE TO CONGRESSIONAL COMMITTEES

15 AND GAO.—The NTIA shall, at the time of providing 

16 an initial estimate of relocation costs to the Commis17 sion under paragraph (4)(A), submit to Committees 

18 on Appropriations and Energy and Commerce of the 

19 House of Representatives for approval, to the Com20 mittees on Appropriations and Commerce, Science, 

21 and Transportation of the Senate for approval, and 

22 to the Comptroller General a copy of such estimate 

23 and the timelines for relocation. Unless disapproved 

24 within 30 days, the estimate shall be approved. If 
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1 disapproved, the NTIA may resubmit a revised ini2 tial estimate. 

3 ‘‘(6) IMPLEMENTATION OF PROCEDURES.—The 

4 NTIA shall take such actions as necessary to ensure 

5 the timely relocation of Federal entities’ spectrum6 related operations from frequencies defined in para7 graph (2) to frequencies or facilities of comparable 

8 capability. Upon a finding by the NTIA that a Fed9 eral entity has achieved comparable capability of sys10 tems by relocating to a new frequency assignment or 

11 by utilizing an alternative technology, the NTIA 

12 shall terminate the entity’s authorization and notify 

13 the Commission that the entity’s relocation has been 

14 completed. The NTIA shall also terminate such enti15 ty’s authorization if the NTIA determines that the 

16 entity has unreasonably failed to comply with the 

17 timeline for relocation submitted by the Director of 

18 the Office of Management and Budget under section 

19 118(d)(2)(B).’’. 

20 SEC. 203. MINIMUM AUCTION RECEIPTS AND DISPOSITION 

21 OF PROCEEDS. 

22 (a) AUCTION DESIGN.—Section 309(j)(3) of the 

23 Communications Act of 1934 (47 U.S.C. 309(j)(3)) is 

24 amended— 
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1 (1) by striking ‘‘and’’ at the end of subpara2 graph (D); 

3 (2) by striking the period at the end of sub4 paragraph (E) and inserting ‘‘; and’’; and 

5 (3) by adding at the end the following new sub6 paragraph: 

7 ‘‘(F) for any auction of eligible frequencies 

8 described in section 113(g)(2) of the National 

9 Telecommunications and Information Adminis10 tration Organization Act (47 U.S.C. 923(g)(2)), 

11 the recovery of 110 percent of estimated reloca12 tion costs as provided to the Commission pursu13 ant to section 113(g)(4) of such Act.’’. 

14 (b) SPECIAL AUCTION PROVISIONS FOR ELIGIBLE

15 FREQUENCIES.—Section 309(j) of such Act is further 

16 amended by adding at the end the following new para17 graph: 

18 ‘‘(15) SPECIAL AUCTION PROVISIONS FOR ELI19 GIBLE FREQUENCIES.— 

20 ‘‘(A) SPECIAL REGULATIONS.—The Com21 mission shall revise the regulations prescribed 

22 under paragraph (4)(F) of this subsection to 

23 prescribe methods by which the total cash pro24 ceeds from any auction of eligible frequencies 

25 described in section 113(g)(2) of the National 
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1 Telecommunications and Information Adminis2 tration Organization Act (47 U.S.C. 923(g)(2)) 

3 shall at least equal 110 percent of the total esti4 mated relocation costs provided to the Commis5 sion pursuant to section 113(g)(4) of such Act. 

6 ‘‘(B) CONCLUSION OF AUCTIONS CONTIN7 GENT ON MINIMUM PROCEEDS.—The Commis8 sion shall not conclude any auction of eligible 

9 frequencies described in section 113(g)(2) of 

10 such Act if the total cash proceeds attributable 

11 to such spectrum are less than 110 percent of 

12 the total estimated relocation costs provided to 

13 the Commission pursuant to section 113(g)(4) 

14 of such Act. If the Commission is unable to 

15 conclude an auction for the foregoing reason, 

16 the Commission shall cancel the auction, return 

17 within 45 days after the auction cancellation 

18 date any deposits from participating bidders 

19 held in escrow, and absolve such bidders from 

20 any obligation to the United States to bid in 

21 any subsequent reauction of such spectrum. 

22 ‘‘(C) AUTHORITY TO ISSUE PRIOR TO DE23 AUTHORIZATION.—In any auction conducted 

24 under the regulations required by subparagraph 

25 (A), the Commission may grant a license as-
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1 signed for the use of eligible frequencies prior 

2 to the termination of an eligible Federal entity’s 

3 authorization. However, the Commission shall 

4 condition such license by requiring that the li5 censee cannot cause harmful interference to 

6 such Federal entity until such entity’s author7 ization has been terminated by the National 

8 Telecommunications and Information Adminis9 tration.’’. 

10 (c) DEPOSIT OF PROCEEDS.—Paragraph (8) of sec11 tion 309(j) of the Communications Act of 1934 (47 U.S.C. 

12 309(j)) is amended— 

13 (1) in subparagraph (A), by inserting ‘‘or sub14 paragraph (D)’’ after ‘‘subparagraph (B)’’; and 

15 (2) by adding at the end the following new sub16 paragraph: 

17 ‘‘(D) DISPOSITION OF CASH PROCEEDS.— 

18 Cash proceeds attributable to the auction of any 

19 eligible frequencies described in section 

20 113(g)(2) of the National Telecommunications 

21 and Information Administration Organization 

22 Act (47 U.S.C. 923(g)(2)) shall be deposited in 

23 the Spectrum Relocation Fund established 

24 under section 118 of such Act, and shall be 

25 available in accordance with that section.’’. 
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1 SEC. 204. ESTABLISHMENT OF FUND AND PROCEDURES. 

2 Part B of the National Telecommunications and In3 formation Administration Organization Act is amended by 

4 adding after section 117 (47 U.S.C. 927) the following 

5 new section: 

6 ‘‘SEC. 118. SPECTRUM RELOCATION FUND. 

7 ‘‘(a) ESTABLISHMENT OF SPECTRUM RELOCATION

8 FUND.—There is established on the books of the Treasury 

9 a separate fund to be known as the ‘Spectrum Relocation 

10 Fund’ (in this section referred to as the ‘Fund’), which 

11 shall be administered by the Office of Management and 

12 Budget (in this section referred to as ‘OMB’), in consulta13 tion with the NTIA. 

14 ‘‘(b) CREDITING OF RECEIPTS.—The Fund shall be 

15 credited with the amounts specified in section 

16 309(j)(8)(D) of the Communications Act of 1934 (47 

17 U.S.C. 309(j)(8)(D)). 

18 ‘‘(c) USED TO PAY RELOCATION COSTS.—The 

19 amounts in the Fund from auctions of eligible frequencies 

20 are authorized to be used to pay relocation costs, as de21 fined in section 113(g)(3) of this Act, of an eligible Fed22 eral entity incurring such costs with respect to relocation 

23 from those frequencies. 

24 ‘‘(d) FUND AVAILABILITY.— 

25 ‘‘(1) APPROPRIATION.—There are hereby ap26 propriated from the Fund such sums as are required 
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1 to pay the relocation costs specified in subsection 

2 (c). 

3 ‘‘(2) TRANSFER CONDITIONS.—None of the 

4 funds provided under this subsection may be trans5 ferred to any eligible Federal entity— 

6 ‘‘(A) unless the Director of OMB has de7 termined, in consultation with the NTIA, the 

8 appropriateness of such costs and the timeline 

9 for relocation; and 

10 ‘‘(B) until 30 days after the Director of 

11 OMB has submitted to the Committees on Ap12 propriations and Energy and Commerce of the 

13 House of Representatives for approval, to the 

14 Committees on Appropriations and Commerce, 

15 Science, and Transportation of the Senate for 

16 approval, and to the Comptroller General a de17 tailed plan describing specifically how the sums 

18 transferred from the Fund will be used to pay 

19 relocation costs in accordance with such sub20 section and the timeline for such relocation. 

21 Unless disapproved within 30 days, the amounts in 

22 the Fund shall be available immediately. If the plan 

23 is disapproved, the Director may resubmit a revised 

24 plan. 
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1 ‘‘(3) REVERSION OF UNUSED FUNDS.—Any 

2 auction proceeds in the Fund that are remaining 

3 after the payment of the relocation costs that are 

4 payable from the Fund shall revert to and be depos5 ited in the general fund of the Treasury not later 

6 than 8 years after the date of the deposit of such 

7 proceeds to the Fund. 

8 ‘‘(e) TRANSFER TO ELIGIBLE FEDERAL ENTITIES.— 

9 ‘‘(1) TRANSFER.— 

10 ‘‘(A) Amounts made available pursuant to 

11 subsection (d) shall be transferred to eligible 

12 Federal entities, as defined in section 113(g)(1) 

13 of this Act. 

14 ‘‘(B) An eligible Federal entity may receive 

15 more than one such transfer, but if the sum of 

16 the subsequent transfer or transfers exceeds 10 

17 percent of the original transfer— 

18 ‘‘(i) such subsequent transfers are 

19 subject to prior approval by the Director of 

20 OMB as required by subsection (d)(2)(A); 

21 ‘‘(ii) the notice to the committees con22 taining the plan required by subsection 

23 (d)(2)(B) shall be not less than 45 days 

24 prior to the date of the transfer that 

25 causes such excess above 10 percent; 
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1 ‘‘(iii) such notice shall include, in ad2 dition to such plan, an explanation of need 

3 for such subsequent transfer or transfers; 

4 and 

5 ‘‘(iv) the Comptroller General shall, 

6 within 30 days after receiving such plan, 

7 review such plan and submit to such com8 mittees an assessment of the explanation 

9 for the subsequent transfer or transfers. 

10 ‘‘(C) Such transferred amounts shall be 

11 credited to the appropriations account of the el12 igible Federal entity which has incurred, or will 

13 incur, such costs, and shall, subject to para14 graph (2), remain available until expended. 

15 ‘‘(2) RETRANSFER TO FUND.—An eligible Fed16 eral entity that has received such amounts shall re17 port its expenditures to OMB and shall transfer any 

18 amounts in excess of actual relocation costs back to 

19 the Fund immediately after the NTIA has notified 

20 the Commission that the entity’s relocation is com21 plete, or has determined that such entity has unrea22 sonably failed to complete such relocation in accord23 ance with the timeline required by subsection 

24 (d)(2)(A).’’. 
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1 SEC. 205. TELECOMMUNICATIONS DEVELOPMENT FUND. 

2 Section 714(f) of the Communications Act of 1934 

3 (47 U.S.C. 614(f)) is amended to read as follows: 

4 ‘‘(f) LENDING AND CREDIT OPERATIONS.—Loans or 

5 other extensions of credit from the Fund shall be made 

6 available to an eligible small business on the basis of— 

7 ‘‘(1) the analysis of the business plan of the eli8 gible small business; 

9 ‘‘(2) the reasonable availability of collateral to 

10 secure the loan or credit extension; 

11 ‘‘(3) the extent to which the loan or credit ex12 tension promotes the purposes of this section; and 

13 ‘‘(4) other lending policies as defined by the 

14 Board.’’. 

15 SEC. 206. CONSTRUCTION. 

16 Nothing in this title is intended to modify section 

17 1062(b) of the National Defense Authorization Act for 

18 Fiscal Year 2000 (Public Law 106–65). 

19 SEC. 207. ANNUAL REPORT. 

20 The National Telecommunications and Information 

21 Administration shall submit an annual report to the Com22 mittees on Appropriations and Energy and Commerce of 

23 the House of Representatives, the Committees on Appro24 priations and Commerce, Science, and Transportation of 

25 the Senate, and the Comptroller General on— 
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1 (1) the progress made in adhering to the 

2 timelines applicable to relocation from eligible fre3 quencies required under section 118(d)(2)(A) of the 

4 National Telecommunications and Information Ad5 ministration Organization Act, separately stated on 

6 a communication system-by-system basis and on an 

7 auction-by-auction basis; and 

8 (2) with respect to each relocated communica9 tion system and auction, a statement of the estimate 

10 of relocation costs required under section 113(g)(4) 

11 of such Act, the actual relocations costs incurred, 

12 and the amount of such costs paid from the Spec13 trum Relocation Fund. 

14 SEC. 208. PRESERVATION OF AUTHORITY; NTIA REPORT 

15 REQUIRED. 

16 (a) SPECTRUM MANAGEMENT AUTHORITY RE17 TAINED.—Except as provided with respect to the bands 

18 of frequencies identified in section 113(g)(2)(A) of the Na19 tional Telecommunications and Information Administra20 tion Organization Act (47 U.S.C. 923(g)(2)(A)) as amend21 ed by this title, nothing in this title or the amendments 

22 made by this title shall be construed as limiting the Fed23 eral Communications Commission’s authority to allocate 

24 bands of frequencies that are reallocated from Federal use 
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1 to non-Federal use for unlicensed, public safety, shared, 

2 or non-commercial use. 

3 (b) NTIA REPORT REQUIRED.—Within 1 year after 

4 the date of enactment of this Act, the Administrator of 

5 the National Telecommunications and Information Ad6 ministration shall submit to the Energy and Commerce 

7 Committee of the House of Representatives and the Com8 merce, Science, and Transportation Committee of the Sen9 ate a report on various policy options to compensate Fed10 eral entities for relocation costs when such entities’ fre11 quencies are allocated by the Commission for unlicensed, 

12 public safety, shared, or non-commercial use. 

13 SEC. 209. COMMERCIAL SPECTRUM LICENSE POLICY RE14 VIEW. 

15 (a) EXAMINATION.—The Comptroller General shall 

16 examine national commercial spectrum license policy as 

17 implemented by the Federal Communications Commission, 

18 and shall report its findings to the Senate Committee on 

19 Commerce, Science, and Transportation and the House of 

20 Representatives Committee on Energy and Commerce 

21 within 270 days. 

22 (b) CONTENT.—The report shall address each of the 

23 following: 

24 (1) An estimate of the respective proportions of 

25 electromagnetic spectrum capacity that have been 
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1 assigned by the Federal Communications Commis2 sion— 

3 (A) prior to enactment of section 309(j) of 

4 the Communications Act of 1934 (47 U.S.C. 

5 309(j)) providing to the Commission’s competi6 tive bidding authority, 

7 (B) after enactment of that section using 

8 the Commission’s competitive bidding authority, 

9 and 

10 (C) by means other than competitive bid11 ding, 

12 and a description of the classes of licensees assigned 

13 under each method. 

14 (2) The extent to which requiring entities to ob15 tain licenses through competitive bidding places 

16 those entities at a competitive or financial disadvan17 tage to offer services similar to entities that did not 

18 acquire licenses through competitive bidding. 

19 (3) The effect, if any, of the use of competitive 

20 bidding and the resulting diversion of licensees’ fi21 nancial resources on the introduction of new services 

22 including the quality, pace, and scope of the offering 

23 of such services to the public. 

24 (4) The effect, if any, of participation in com25 petitive bidding by incumbent spectrum license hold-
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1 ers as applicants or investors in an applicant, includ2 ing a discussion of any additional effect if such ap3 plicant qualified for bidding credits as a designated 

4 entity. 

5 (5) The effect on existing license holders and 

6 consumers of services offered by these providers of 

7 the Administration’s Spectrum License User Fee 

8 proposal contained in the President’s Budget of the 

9 United States Government for Fiscal Year 2004 

10 (Budget, page 299; Appendix, page 1046), and an 

11 evaluation of whether the enactment of this proposal 

12 could address, either in part or in whole, any pos13 sible competitive disadvantages described in para14 graph (2). 

15 (c) FCC ASSISTANCE.—The Federal Communica16 tions Commission shall provide information and assist17 ance, as necessary, to facilitate the completion of the ex18 amination required by subsection (a). 

19 TITLE III—UNIVERSAL SERVICE 

20 SEC. 301. SHORT TITLE. 

21 This title may be cited as the ‘‘Universal Service 

22 Antideficiency Temporary Suspension Act’’. 
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1 SEC. 302. APPLICATION OF CERTAIN TITLE 31 PROVISIONS 

2 TO UNIVERSAL SERVICE FUND. 

3 (a) IN GENERAL.—During the period beginning on 

4 the date of enactment of this Act and ending on December 

5 31, 2005, section 1341 and subchapter II of chapter 15 

6 of title 31, United States Code, do not apply— 

7 (1) to any amount collected or received as Fed8 eral universal service contributions required by sec9 tion 254 of the Communications Act of 1934 (47 

10 U.S.C. 254), including any interest earned on such 

11 contributions; nor 

12 (2) to the expenditure or obligation of amounts 

13 attributable to such contributions for universal serv14 ice support programs established pursuant to that 

15 section. 

16 (b) POST-2005 FULFILLMENT OF PROTECTED OBLI17 GATIONS.—Section 1341 and subchapter II of chapter 15 

18 of title 31, United States Code, do not apply after Decem19 ber 31, 2005, to an expenditure or obligation described 

20 in subsection (a)(2) made or authorized during the period 

21 described in subsection (a). 

Passed the House of Representatives November 20, 

2004. 

Attest: JEFF TRANDAHL, 

Clerk.