I 

108TH CONGRESS 

2D SESSION H. R. 5419 

To amend the National Telecommunications and Information Adminstration 

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. 

IN THE HOUSE OF REPRESENTATIVES 

NOVEMBER 20, 2004 

Mr. UPTON introduced the following bill; which was referred to the Committee 

on Energy and Commerce 

NOVEMBER 20, 2004 

The Committee on Energy and Commerce discharged; considered and passed 

A BILL 

To amend the National Telecommunications and Information 

Adminstration 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 
2 

•HR 5419 CPH 

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, 

3 TITLE I—E–911 

4 SEC. 101. SHORT TITLE. 

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

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

7 ‘‘ENHANCE 911 Act of 2004’’. 

8 SEC. 102. FINDINGS. 

9 The Congress finds that— 

10 (1) for the sake of our Nation’s homeland secu11 rity and public safety, a universal emergency tele12 phone number (911) that is enhanced with the most 

13 modern and state-of-the-art telecommunications ca14 pabilities possible should be available to all citizens 

15 in all regions of the Nation; 
3 

•HR 5419 CPH 

1 (2) enhanced emergency communications re2 quire Federal, State, and local government resources 

3 and coordination; 

4 (3) any funds that are collected from fees im5 posed on consumer bills for the purposes of funding 

6 911 services or enhanced 911 should go only for the 

7 purposes for which the funds are collected; and 

8 (4) enhanced 911 is a high national priority 

9 and it requires Federal leadership, working in co10 operation with State and local governments and with 

11 the numerous organizations dedicated to delivering 

12 emergency communications services. 

13 SEC. 103. PURPOSES. 

14 The purposes of this title are— 

15 (1) to coordinate 911 services and E–911 serv16 ices, at the Federal, State, and local levels; and 

17 (2) to ensure that funds collected on tele18 communications bills for enhancing emergency 911 

19 services are used only for the purposes for which the 

20 funds are being collected. 

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

22 Part C of title I of the National Telecommunications 

23 and Information Administration Organization Act (47 

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

25 following: 
4 

•HR 5419 CPH 

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

2 ‘‘(a) E–911 IMPLEMENTATION COORDINATION OF3 FICE.— 

4 ‘‘(1) ESTABLISHMENT.—The Assistant Sec5 retary and the Administrator of the National High6 way Traffic Safety Administration shall— 

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

8 coordination and communication between Fed9 eral, State, and local emergency communica10 tions systems, emergency personnel, public safe11 ty organizations, telecommunications carriers, 

12 and telecommunications equipment manufactur13 ers and vendors involved in the implementation 

14 of E–911 services; and 

15 ‘‘(B) create an E–911 Implementation Co16 ordination Office to implement the provisions of 

17 this section. 

18 ‘‘(2) MANAGEMENT PLAN.—The Assistant Sec19 retary and the Administrator shall jointly develop a 

20 management plan for the program established under 

21 this section. Such plan shall include the organiza22 tional structure and funding profiles for the 5-year 

23 duration of the program. The Assistant Secretary 

24 and the Administrator shall, within 90 days after 

25 the date of enactment of this Act, submit the man26 agement plan to the Committees on Energy and 
5 

•HR 5419 CPH 

1 Commerce and Appropriations of the House of Rep2 resentatives and the Committees on Commerce, 

3 Science, and Transportation and Appropriations of 

4 the Senate. 

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

6 ‘‘(A) take actions, in concert with coordi7 nators designated in accordance with subsection 

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

9 communication; 

10 ‘‘(B) develop, collect, and disseminate in11 formation concerning practices, procedures, and 

12 technology used in the implementation of E– 

13 911 services; 

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

15 the preparation of implementation plans re16 quired under subsection (b)(3)(A)(iii); 

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

18 approval or disapproval of applications for 

19 grants under subsection (b); and 

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

21 such grants in fulfilling such implementation 

22 plans. 

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

24 the Administrator shall provide a joint annual report 

25 to Congress by the first day of October of each year 
6 

•HR 5419 CPH 

1 on the activities of the Office to improve coordina2 tion and communication with respect to the imple3 mentation of E–911 services. 

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

5 ‘‘(1) MATCHING GRANTS.—The Assistant Sec6 retary and the Administrator, after consultation with 

7 the Secretary of Homeland Security and the Chair8 man of the Federal Communications Commission, 

9 and acting through the Office, shall provide grants 

10 to eligible entities for the implementation and oper11 ation of Phase II E–911 services. 

12 ‘‘(2) MATCHING REQUIREMENT.—The Federal 

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

14 under this section shall not exceed 50 percent. The 

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

16 non-Federal sources. 

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

18 grants under paragraph (1), the Assistant Secretary 

19 and the Administrator shall require an eligible entity 

20 to certify in its application that— 

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

22 is a State government, the entity— 

23 ‘‘(i) has coordinated its application 

24 with the public safety answering points (as 

25 such term is defined in section 222(h)(4) 
7 

•HR 5419 CPH 

1 of the Communications Act of 1934) lo2 cated within the jurisdiction of such entity; 

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

4 governmental body of the entity to serve as 

5 the coordinator of implementation of E– 

6 911 services, except that such designation 

7 need not vest such coordinator with direct 

8 legal authority to implement E–911 serv9 ices or manage emergency communications 

10 operations; 

11 ‘‘(iii) has established a plan for the 

12 coordination and implementation of E–911 

13 services; and 

14 ‘‘(iv) has integrated telecommuni15 cations services involved in the implemen16 tation and delivery of phase II E–911 serv17 ices; or 

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

19 is not a State, the entity has complied with 

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

21 and the State in which it is located has com22 plied with clause (ii) of such subparagraph. 

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

24 the Administrator shall jointly issue regulations 

25 within 180 days after the date of enactment of the 
8 

•HR 5419 CPH 

1 ENHANCE 911 Act of 2004, after a public com2 ment period of not less than 60 days, prescribing the 

3 criteria for selection for grants under this section, 

4 and shall update such regulations as necessary. The 

5 criteria shall include performance requirements and 

6 a timeline for completion of any project to be fi7 nanced by a grant under this section. 

8 ‘‘(c) DIVERSION OF E–911 CHARGES.— 

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

10 purposes of this subsection, the term ‘designated E– 

11 911 charges’ means any taxes, fees, or other charges 

12 imposed by a State or other taxing jurisdiction that 

13 are designated or presented as dedicated to deliver 

14 or improve E–911 services. 

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

16 matching grant under this section shall certify to the 

17 Assistant Secretary and the Administrator at the 

18 time of application, and each applicant that receives 

19 such a grant shall certify to the Assistant Secretary 

20 and the Administrator annually thereafter during 

21 any period of time during which the funds from the 

22 grant are available to the applicant, that no portion 

23 of any designated E–911 charges imposed by a 

24 State or other taxing jurisdiction within which the 

25 applicant is located are being obligated or expended 
9 

•HR 5419 CPH 

1 for any purpose other than the purposes for which 

2 such charges are designated or presented during the 

3 period beginning 180 days immediately preceding 

4 the date of the application and continuing through 

5 the period of time during which the funds from the 

6 grant are available to the applicant. 

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

8 for a grant under this section shall agree, as a con9 dition of receipt of the grant, that if the State or 

10 other taxing jurisdiction within which the applicant 

11 is located, during any period of time during which 

12 the funds from the grant are available to the appli13 cant, obligates or expends designated E–911 charges 

14 for any purpose other than the purposes for which 

15 such charges are designated or presented, all of the 

16 funds from such grant shall be returned to the Of17 fice. 

18 ‘‘(4) PENALTY FOR PROVIDING FALSE INFOR19 MATION.—Any applicant that provides a certification 

20 under paragraph (1) knowing that the information 

21 provided in the certification was false shall— 

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

23 under subsection (b); 
10 

•HR 5419 CPH 

1 ‘‘(B) return any grant awarded under sub2 section (b) during the time that the certification 

3 was not valid; and 

4 ‘‘(C) not be eligible to receive any subse5 quent grants under subsection (b). 

6 ‘‘(d) AUTHORIZATION; TERMINATION.— 

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

8 be appropriated to the Department of Transpor9 tation, for the purposes of grants under the joint 

10 program operated under this section with the De11 partment of Commerce, not more than 

12 $250,000,000 for each of the fiscal years 2005 

13 through 2009, not more than 5 percent of which for 

14 any fiscal year may be obligated or expended for ad15 ministrative costs. 

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

17 section shall cease to be effective on October 1, 

18 2009. 

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

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

21 911 Implementation Coordination Office. 

22 ‘‘(2) ADMINISTRATOR.—The term ‘Adminis23 trator’ means the Administrator of the National 

24 Highway Traffic Safety Administration. 

25 ‘‘(3) ELIGIBLE ENTITY.— 
11 

•HR 5419 CPH 

1 ‘‘(A) IN GENERAL.—The term ‘eligible en2 tity’ means a State or local government or a 

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

4 the Indian Self-Determination and Education 

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

6 ‘‘(B) INSTRUMENTALITIES.—Such term in7 cludes public authorities, boards, commissions, 

8 and similar bodies created by one or more eligi9 ble entities described in subparagraph (A) to 

10 provide E–911 services. 

11 ‘‘(C) EXCEPTION.—Such term does not in12 clude any entity that has failed to submit the 

13 most recently required certification under sub14 section (c) within 30 days after the date on 

15 which such certification is due. 

16 ‘‘(4) E–911 SERVICES.—The term ‘E–911 serv17 ices’ means both phase I and phase II enhanced 911 

18 services, as described in section 20.18 of the Com19 mission’s regulations (47 C.F.R. 20.18), as in effect 

20 on the date of enactment of the ENHANCE 911 

21 Act of 2004, or as subsequently revised by the Fed22 eral Communications Commission. 

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

24 ‘phase II E–911 services’ means only phase II en25 hanced 911 services, as described in such section 
12 

•HR 5419 CPH 

1 20.18 (47 C.F.R. 20.18), as in effect on such date, 

2 or as subsequently revised by the Federal Commu3 nications Commission. 

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

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

6 Puerto Rico, the Northern Mariana Islands, and any 

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

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

9 SERVICE CHARGES. 

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

11 enactment of this Act, the Comptroller General shall ini12 tiate a study of— 

13 (1) the imposition of taxes, fees, or other 

14 charges imposed by States or political subdivisions 

15 of States that are designated or presented as dedi16 cated to improve emergency communications serv17 ices, including 911 services or enhanced 911 serv18 ices, or related to emergency communications serv19 ices operations or improvements; and 

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

21 fees, or charges. 

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

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

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

25 Senate Committee on Commerce, Science, and Transpor-
13 

•HR 5419 CPH 

1 tation and the House of Representatives Committee on 

2 Energy and Commerce setting forth the findings, conclu3 sions, and recommendations, if any, of the study, includ4 ing— 

5 (1) the identity of each State or political sub6 division that imposes such taxes, fees, or other 

7 charges; and 

8 (2) the amount of revenues obligated or ex9 pended by that State or political subdivision for any 

10 purpose other than the purposes for which such 

11 taxes, fees, or charges were designated or presented. 

12 SEC. 106. REPORT ON THE DEPLOYMENT OF E–911 PHASE II 

13 SERVICES BY TIER III SERVICE PROVIDERS. 

14 Within 90 days after the date of enactment of this 

15 Act, the Federal Communications Commission shall sub16 mit a report to the Committee on Energy and Commerce 

17 of the House of Representatives and the Committee on 

18 Commerce, Science, and Transportation of the Senate de19 tailing— 

20 (1) the number of tier III commercial mobile 

21 service providers that are offering phase II E–911 

22 services; 

23 (2) the number of requests for waivers from 

24 compliance with the Commission’s phase II E–911 
14 

•HR 5419 CPH 

1 service requirements received by the Commission 

2 from such tier III providers; 

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

4 the Commission to such tier III providers; 

5 (4) how long each waiver request remained 

6 pending before it was granted or denied; 

7 (5) how many waiver requests are pending at 

8 the time of the filing of the report; 

9 (6) when the pending requests will be granted 

10 or denied; 

11 (7) actions the Commission has taken to reduce 

12 the amount of time a waiver request remains pend13 ing; and 

14 (8) the technologies that are the most effective 

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

16 such tier III providers. 

17 SEC. 107. FCC REQUIREMENTS FOR CERTAIN TIER III CAR18 RIERS. 

19 (a) IN GENERAL.—The Federal Communications 

20 Commission shall act on any petition filed by a qualified 

21 Tier III carrier requesting a waiver of compliance with the 

22 requirements of section 20.18(g)(1)(v) of the Commis23 sion’s rules (47 C.F.R. 20.18(g)(1)(v)) within 100 days 

24 after the Commission receives the petition. The Commis25 sion shall grant the waiver of compliance with the require-
15 

•HR 5419 CPH 

1 ments of section 20.18(g)(1)(v) of the Commission’s rules 

2 (47 C.F.R. 20.18(g)(1)(v)) requested by the petition if it 

3 determines that strict enforcement of the requirements of 

4 that section would result in consumers having decreased 

5 access to emergency services. 

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

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

8 a provider of commercial mobile service (as defined in sec9 tion 332(d) of the Communications Act of 1934 (47 

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

11 of December 31, 2001. 

12 TITLE II—SPECTRUM 

13 RELOCATION 

14 SEC. 201. SHORT TITLE. 

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

16 Enhancement Act’’. 

17 SEC. 202. RELOCATION OF ELIGIBLE FEDERAL ENTITIES 

18 FOR THE REALLOCATION OF SPECTRUM FOR 

19 COMMERCIAL PURPOSES. 

20 Section 113(g) of the National Telecommunications 

21 and Information Administration Organization Act (47 

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

23 through (3) and inserting the following: 

24 ‘‘(1) ELIGIBLE FEDERAL ENTITIES.—Any Fed25 eral entity that operates a Federal Government sta-
16 

•HR 5419 CPH 

1 tion assigned to a band of frequencies specified in 

2 paragraph (2) and that incurs relocation costs be3 cause of the reallocation of frequencies from Federal 

4 use to non-Federal use shall receive payment for 

5 such costs from the Spectrum Relocation Fund, in 

6 accordance with section 118 of this Act. For pur7 poses of this paragraph, Federal power agencies ex8 empted under subsection (c)(4) that choose to relo9 cate from the frequencies identified for reallocation 

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

11 payment under this paragraph. 

12 ‘‘(2) ELIGIBLE FREQUENCIES.—The bands of 

13 eligible frequencies for purposes of this section are 

14 as follows: 

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

16 1432–1435 megahertz band, the 1710–1755 

17 megahertz band, and the 2385–2390 megahertz 

18 band of frequencies; and 

19 ‘‘(B) any other band of frequencies reallo20 cated from Federal use to non-Federal use after 

21 January 1, 2003, that is assigned by competi22 tive bidding pursuant to section 309(j) of the 

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

24 309(j)), except for bands of frequencies pre25 viously identified by the National Telecommuni-
17 

•HR 5419 CPH 

1 cations and Information Administration in the 

2 Spectrum Reallocation Final Report, NTIA 

3 Special Publication 95–32 (1995). 

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

5 purposes of this subsection, the term ‘relocation 

6 costs’ means the costs incurred by a Federal entity 

7 to achieve comparable capability of systems, regard8 less of whether that capability is achieved by relo9 cating to a new frequency assignment or by utilizing 

10 an alternative technology. Such costs include— 

11 ‘‘(A) the costs of any modification or re12 placement of equipment, software, facilities, op13 erating manuals, training costs, or regulations 

14 that are attributable to relocation; 

15 ‘‘(B) the costs of all engineering, equip16 ment, software, site acquisition and construc17 tion costs, as well as any legitimate and pru18 dent transaction expense, including outside con19 sultants, and reasonable additional costs in20 curred by the Federal entity that are attrib21 utable to relocation, including increased recur22 ring costs associated with the replacement fa23 cilities; 

24 ‘‘(C) the costs of engineering studies, eco25 nomic analyses, or other expenses reasonably 
18 

•HR 5419 CPH 

1 incurred in calculating the estimated relocation 

2 costs that are provided to the Commission pur3 suant to paragraph (4) of this subsection; 

4 ‘‘(D) the one-time costs of any modifica5 tion of equipment reasonably necessary to ac6 commodate commercial use of such frequencies 

7 prior to the termination of the Federal entity’s 

8 primary allocation or protected status, when the 

9 eligible frequencies as defined in paragraph (2) 

10 of this subsection are made available for private 

11 sector uses by competitive bidding and a Fed12 eral entity retains primary allocation or pro13 tected status in those frequencies for a period 

14 of time after the completion of the competitive 

15 bidding process; and 

16 ‘‘(E) the costs associated with the acceler17 ated replacement of systems and equipment if 

18 such acceleration is necessary to ensure the 

19 timely relocation of systems to a new frequency 

20 assignment. 

21 ‘‘(4) NOTICE TO COMMISSION OF ESTIMATED

22 RELOCATION COSTS.— 

23 ‘‘(A) The Commission shall notify the 

24 NTIA at least 18 months prior to the com25 mencement of any auction of eligible fre-
19 

•HR 5419 CPH 

1 quencies defined in paragraph (2). At least 6 

2 months prior to the commencement of any such 

3 auction, the NTIA, on behalf of the Federal en4 tities and after review by the Office of Manage5 ment and Budget, shall notify the Commission 

6 of estimated relocation costs and timelines for 

7 such relocation. 

8 ‘‘(B) Upon timely request of a Federal en9 tity, the NTIA shall provide such entity with in10 formation regarding an alternative frequency 

11 assignment or assignments to which their 

12 radiocommunications operations could be relo13 cated for purposes of calculating the estimated 

14 relocation costs and timelines to be submitted 

15 to the Commission pursuant to subparagraph 

16 (A). 

17 ‘‘(C) To the extent practicable and con18 sistent with national security considerations, 

19 the NTIA shall provide the information re20 quired by subparagraphs (A) and (B) by the ge21 ographic location of the Federal entities’ facili22 ties or systems and the frequency bands used 

23 by such facilities or systems. 

24 ‘‘(5) NOTICE TO CONGRESSIONAL COMMITTEES

25 AND GAO.—The NTIA shall, at the time of providing 
20 

•HR 5419 CPH 

1 an initial estimate of relocation costs to the Commis2 sion under paragraph (4)(A), submit to Committees 

3 on Appropriations and Energy and Commerce of the 

4 House of Representatives for approval, to the Com5 mittees on Appropriations and Commerce, Science, 

6 and Transportation of the Senate for approval, and 

7 to the Comptroller General a copy of such estimate 

8 and the timelines for relocation. Unless disapproved 

9 within 30 days, the estimate shall be approved. If 

10 disapproved, the NTIA may resubmit a revised ini11 tial estimate. 

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

13 NTIA shall take such actions as necessary to ensure 

14 the timely relocation of Federal entities’ spectrum15 related operations from frequencies defined in para16 graph (2) to frequencies or facilities of comparable 

17 capability. Upon a finding by the NTIA that a Fed18 eral entity has achieved comparable capability of sys19 tems by relocating to a new frequency assignment or 

20 by utilizing an alternative technology, the NTIA 

21 shall terminate the entity’s authorization and notify 

22 the Commission that the entity’s relocation has been 

23 completed. The NTIA shall also terminate such enti24 ty’s authorization if the NTIA determines that the 

25 entity has unreasonably failed to comply with the 
21 

•HR 5419 CPH 

1 timeline for relocation submitted by the Director of 

2 the Office of Management and Budget under section 

3 118(d)(2)(B).’’. 

4 SEC. 203. MINIMUM AUCTION RECEIPTS AND DISPOSITION 

5 OF PROCEEDS. 

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

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

8 amended— 

9 (1) by striking ‘‘and’’ at the end of subpara10 graph (D); 

11 (2) by striking the period at the end of sub12 paragraph (E) and inserting ‘‘; and’’; and 

13 (3) by adding at the end the following new sub14 paragraph: 

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

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

17 Telecommunications and Information Adminis18 tration Organization Act (47 U.S.C. 923(g)(2)), 

19 the recovery of 110 percent of estimated reloca20 tion costs as provided to the Commission pursu21 ant to section 113(g)(4) of such Act.’’. 

22 (b) SPECIAL AUCTION PROVISIONS FOR ELIGIBLE

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

24 amended by adding at the end the following new para25 graph: 
22 

•HR 5419 CPH 

1 ‘‘(15) SPECIAL AUCTION PROVISIONS FOR ELI2 GIBLE FREQUENCIES.— 

3 ‘‘(A) SPECIAL REGULATIONS.—The Com4 mission shall revise the regulations prescribed 

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

6 prescribe methods by which the total cash pro7 ceeds from 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 shall at least equal 110 percent of the total esti12 mated relocation costs provided to the Commis13 sion pursuant to section 113(g)(4) of such Act. 

14 ‘‘(B) CONCLUSION OF AUCTIONS CONTIN15 GENT ON MINIMUM PROCEEDS.—The Commis16 sion shall not conclude any auction of eligible 

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

18 such Act if the total cash proceeds attributable 

19 to such spectrum are less than 110 percent of 

20 the total estimated relocation costs provided to 

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

22 of such Act. If the Commission is unable to 

23 conclude an auction for the foregoing reason, 

24 the Commission shall cancel the auction, return 

25 within 45 days after the auction cancellation 
23 

•HR 5419 CPH 

1 date any deposits from participating bidders 

2 held in escrow, and absolve such bidders from 

3 any obligation to the United States to bid in 

4 any subsequent reauction of such spectrum. 

5 ‘‘(C) AUTHORITY TO ISSUE PRIOR TO DE6 AUTHORIZATION.—In any auction conducted 

7 under the regulations required by subparagraph 

8 (A), the Commission may grant a license as9 signed for the use of eligible frequencies prior 

10 to the termination of an eligible Federal entity’s 

11 authorization. However, the Commission shall 

12 condition such license by requiring that the li13 censee cannot cause harmful interference to 

14 such Federal entity until such entity’s author15 ization has been terminated by the National 

16 Telecommunications and Information Adminis17 tration.’’. 

18 (c) DEPOSIT OF PROCEEDS.—Paragraph (8) of sec19 tion 309(j) of the Communications Act of 1934 (47 U.S.C. 

20 309(j)) is amended— 

21 (1) in subparagraph (A), by inserting ‘‘or sub22 paragraph (D)’’ after ‘‘subparagraph (B)’’; and 

23 (2) by adding at the end the following new sub24 paragraph: 
24 

•HR 5419 CPH 

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

2 Cash proceeds attributable to the auction of any 

3 eligible frequencies described in section 

4 113(g)(2) of the National Telecommunications 

5 and Information Administration Organization 

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

7 the Spectrum Relocation Fund established 

8 under section 118 of such Act, and shall be 

9 available in accordance with that section.’’. 

10 SEC. 204. ESTABLISHMENT OF FUND AND PROCEDURES. 

11 Part B of the National Telecommunications and In12 formation Administration Organization Act is amended by 

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

14 new section: 

15 ‘‘SEC. 118. SPECTRUM RELOCATION FUND. 

16 ‘‘(a) ESTABLISHMENT OF SPECTRUM RELOCATION

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

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

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

20 shall be administered by the Office of Management and 

21 Budget (in this section referred to as ‘OMB’), in consulta22 tion with the NTIA. 

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

24 credited with the amounts specified in section 
25 

•HR 5419 CPH 

1 309(j)(8)(D) of the Communications Act of 1934 (47 

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

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

4 amounts in the Fund from auctions of eligible frequencies 

5 are authorized to be used to pay relocation costs, as de6 fined in section 113(g)(3) of this Act, of an eligible Fed7 eral entity incurring such costs with respect to relocation 

8 from those frequencies. 

9 ‘‘(d) FUND AVAILABILITY.— 

10 ‘‘(1) APPROPRIATION.—There are hereby ap11 propriated from the Fund such sums as are required 

12 to pay the relocation costs specified in subsection 

13 (c). 

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

15 funds provided under this subsection may be trans16 ferred to any eligible Federal entity— 

17 ‘‘(A) unless the Director of OMB has de18 termined, in consultation with the NTIA, the 

19 appropriateness of such costs and the timeline 

20 for relocation; and 

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

22 OMB has submitted to the Committees on Ap23 propriations and Energy and Commerce of the 

24 House of Representatives for approval, to the 

25 Committees on Appropriations and Commerce, 
26 

•HR 5419 CPH 

1 Science, and Transportation of the Senate for 

2 approval, and to the Comptroller General a de3 tailed plan describing specifically how the sums 

4 transferred from the Fund will be used to pay 

5 relocation costs in accordance with such sub6 section and the timeline for such relocation. 

7 Unless disapproved within 30 days, the amounts in 

8 the Fund shall be available immediately. If the plan 

9 is disapproved, the Director may resubmit a revised 

10 plan. 

11 ‘‘(3) REVERSION OF UNUSED FUNDS.—Any 

12 auction proceeds in the Fund that are remaining 

13 after the payment of the relocation costs that are 

14 payable from the Fund shall revert to and be depos15 ited in the general fund of the Treasury not later 

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

17 proceeds to the Fund. 

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

19 ‘‘(1) TRANSFER.— 

20 ‘‘(A) Amounts made available pursuant to 

21 subsection (d) shall be transferred to eligible 

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

23 of this Act. 

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

25 more than one such transfer, but if the sum of 
27 

•HR 5419 CPH 

1 the subsequent transfer or transfers exceeds 10 

2 percent of the original transfer— 

3 ‘‘(i) such subsequent transfers are 

4 subject to prior approval by the Director of 

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

6 ‘‘(ii) the notice to the committees con7 taining the plan required by subsection 

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

9 prior to the date of the transfer that 

10 causes such excess above 10 percent; 

11 ‘‘(iii) such notice shall include, in ad12 dition to such plan, an explanation of need 

13 for such subsequent transfer or transfers; 

14 and 

15 ‘‘(iv) the Comptroller General shall, 

16 within 30 days after receiving such plan, 

17 review such plan and submit to such com18 mittees an assessment of the explanation 

19 for the subsequent transfer or transfers. 

20 ‘‘(C) Such transferred amounts shall be 

21 credited to the appropriations account of the el22 igible Federal entity which has incurred, or will 

23 incur, such costs, and shall, subject to para24 graph (2), remain available until expended. 
28 

•HR 5419 CPH 

1 ‘‘(2) RETRANSFER TO FUND.—An eligible Fed2 eral entity that has received such amounts shall re3 port its expenditures to OMB and shall transfer any 

4 amounts in excess of actual relocation costs back to 

5 the Fund immediately after the NTIA has notified 

6 the Commission that the entity’s relocation is com7 plete, or has determined that such entity has unrea8 sonably failed to complete such relocation in accord9 ance with the timeline required by subsection 

10 (d)(2)(A).’’. 

11 SEC. 205. TELECOMMUNICATIONS DEVELOPMENT FUND. 

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

13 (47 U.S.C. 614(f)) is amended to read as follows: 

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

15 other extensions of credit from the Fund shall be made 

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

17 ‘‘(1) the analysis of the business plan of the eli18 gible small business; 

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

20 secure the loan or credit extension; 

21 ‘‘(3) the extent to which the loan or credit ex22 tension promotes the purposes of this section; and 

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

24 Board.’’. 
29 

•HR 5419 CPH 

1 SEC. 206. CONSTRUCTION. 

2 Nothing in this title is intended to modify section 

3 1062(b) of the National Defense Authorization Act for 

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

5 SEC. 207. ANNUAL REPORT. 

6 The National Telecommunications and Information 

7 Administration shall submit an annual report to the Com8 mittees on Appropriations and Energy and Commerce of 

9 the House of Representatives, the Committees on Appro10 priations and Commerce, Science, and Transportation of 

11 the Senate, and the Comptroller General on— 

12 (1) the progress made in adhering to the 

13 timelines applicable to relocation from eligible fre14 quencies required under section 118(d)(2)(A) of the 

15 National Telecommunications and Information Ad16 ministration Organization Act, separately stated on 

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

18 auction-by-auction basis; and 

19 (2) with respect to each relocated communica20 tion system and auction, a statement of the estimate 

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

22 of such Act, the actual relocations costs incurred, 

23 and the amount of such costs paid from the Spec24 trum Relocation Fund. 
30 

•HR 5419 CPH 

1 SEC. 208. PRESERVATION OF AUTHORITY; NTIA REPORT 

2 REQUIRED. 

3 (a) SPECTRUM MANAGEMENT AUTHORITY RE4 TAINED.—Except as provided with respect to the bands 

5 of frequencies identified in section 113(g)(2)(A) of the Na6 tional Telecommunications and Information Administra7 tion Organization Act (47 U.S.C. 923(g)(2)(A)) as amend8 ed by this title, nothing in this title or the amendments 

9 made by this title shall be construed as limiting the Fed10 eral Communications Commission’s authority to allocate 

11 bands of frequencies that are reallocated from Federal use 

12 to non-Federal use for unlicensed, public safety, shared, 

13 or non-commercial use. 

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

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

16 the National Telecommunications and Information Ad17 ministration shall submit to the Energy and Commerce 

18 Committee of the House of Representatives and the Com19 merce, Science, and Transportation Committee of the Sen20 ate a report on various policy options to compensate Fed21 eral entities for relocation costs when such entities’ fre22 quencies are allocated by the Commission for unlicensed, 

23 public safety, shared, or non-commercial use. 
31 

•HR 5419 CPH 

1 SEC. 209. COMMERCIAL SPECTRUM LICENSE POLICY RE2 VIEW. 

3 (a) EXAMINATION.—The Comptroller General shall 

4 examine national commercial spectrum license policy as 

5 implemented by the Federal Communications Commission, 

6 and shall report its findings to the Senate Committee on 

7 Commerce, Science, and Transportation and the House of 

8 Representatives Committee on Energy and Commerce 

9 within 270 days. 

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

11 following: 

12 (1) An estimate of the respective proportions of 

13 electromagnetic spectrum capacity that have been 

14 assigned by the Federal Communications Commis15 sion— 

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

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

18 309(j)) providing to the Commission’s competi19 tive bidding authority, 

20 (B) after enactment of that section using 

21 the Commission’s competitive bidding authority, 

22 and 

23 (C) by means other than competitive bid24 ding, 

25 and a description of the classes of licensees assigned 

26 under each method. 
32 

•HR 5419 CPH 

1 (2) The extent to which requiring entities to ob2 tain licenses through competitive bidding places 

3 those entities at a competitive or financial disadvan4 tage to offer services similar to entities that did not 

5 acquire licenses through competitive bidding. 

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

7 bidding and the resulting diversion of licensees’ fi8 nancial resources on the introduction of new services 

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

10 of such services to the public. 

11 (4) The effect, if any, of participation in com12 petitive bidding by incumbent spectrum license hold13 ers as applicants or investors in an applicant, includ14 ing a discussion of any additional effect if such ap15 plicant qualified for bidding credits as a designated 

16 entity. 

17 (5) The effect on existing license holders and 

18 consumers of services offered by these providers of 

19 the Administration’s Spectrum License User Fee 

20 proposal contained in the President’s Budget of the 

21 United States Government for Fiscal Year 2004 

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

23 evaluation of whether the enactment of this proposal 

24 could address, either in part or in whole, any pos-
33 

•HR 5419 CPH 

1 sible competitive disadvantages described in para2 graph (2). 

3 (c) FCC ASSISTANCE.—The Federal Communica4 tions Commission shall provide information and assist5 ance, as necessary, to facilitate the completion of the ex6 amination required by subsection (a). 

7 TITLE III—UNIVERSAL SERVICE 

8 SEC. 301. SHORT TITLE. 

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

10 Antideficiency Temporary Suspension Act’’. 

11 SEC. 302. APPLICATION OF CERTAIN TITLE 31 PROVISIONS 

12 TO UNIVERSAL SERVICE FUND. 

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

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

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

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

17 (1) to any amount collected or received as Fed18 eral universal service contributions required by sec19 tion 254 of the Communications Act of 1934 (47 

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

21 contributions; nor 

22 (2) to the expenditure or obligation of amounts 

23 attributable to such contributions for universal serv24 ice support programs established pursuant to that 

25 section. 
34 

•HR 5419 CPH 

1 (b) POST-2005 FULFILLMENT OF PROTECTED OBLI2 GATIONS.—Section 1341 and subchapter II of chapter 15 

3 of title 31, United States Code, do not apply after Decem4 ber 31, 2005, to an expenditure or obligation described 

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

6 described in subsection (a). 

Æ