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103D CONGRESS

1ST SESSION H. R. 1785

To make various budget cuts and for other purposes.

IN THE HOUSE OF REPRESENTATIVES

APRIL 21, 1993

Mr. KNOLLENBERG introduced the following bill; which was referred jointly

to the Committees on Public Works and Transportation, Energy and

Commerce, House Administration, Natural Resources, Banking, Finance

and Urban Affairs, Government Operations, Agriculture, Ways and

Means, Post Office and Civil Service, Education and Labor, and Appropriations

A BILL

To make various budget cuts and for other purposes.

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 ‘‘Deficit Reduction Act

5 of 1993’’.

6 SEC. 2. REDUCTION IN TRAVEL BUDGETS.

7 The annual travel budget for each non-defense execu8 tive branch agency (excluding the Postal Service) for fiscal

9 year 1994 shall not exceed an amount equal to 90 percent
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1 of the budget level available to such agency for fiscal year

2 1993.

3 SEC. 3. ABOLITION OF THE INTERSTATE COMMERCE COM4 MISSION.

5 (a) IN GENERAL.—The Interstate Commerce Com6 mission is abolished.

7 (b) TRANSFER OF FUNCTIONS.—

8 (1) CHAIRMAN AND MEMBERS.—The functions,

9 powers, and duties of the Chairman or the members

10 of the Interstate Commerce Commission are trans11 ferred to and vested in the Secretary of Transpor12 tation.

13 (2) COMMISSION.—The functions, powers, and

14 duties of the Interstate Commerce Commission are

15 transferred to the Department of Transportation.

16 (c) ADMINISTRATIVE PROVISIONS.—

17 (1) REORGANIZATION.—The Secretary of

18 Transportation is authorized to allocate or reallocate

19 any function transferred under subsection (b) among

20 the officers of the Department of Transportation,

21 and to establish, consolidate, alter, or discontinue

22 such organizational entities in the Department of

23 Transportation as may be necessary or appropriate.

24 (2) RULES.—The Secretary of Transportation

25 is authorized to prescribe, in accordance with the
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1 provisions of chapters 5 and 6 of title 5, United

2 States Code, such rules and regulations as are nec3 essary or appropriate to administer and manage the

4 functions of the Department of Transportation.

5 (3) TRANSFER AND ALLOCATIONS OF APPRO6 PRIATIONS AND PERSONNEL.—Except as otherwise

7 provided in this section, the personnel employed in

8 connection with, and the assets, liabilities, contracts,

9 property, records, and unexpended balances of ap10 propriations, authorizations, allocations, and other

11 funds employed, used, held, arising from, available

12 to, or to be made available in connection with the

13 functions transferred by this section, subject to sec14 tion 1531 of title 31, United States Code, shall be

15 transferred to the Department of Transportation.

16 Unexpended funds transferred pursuant to this sec17 tion shall be used only for the purposes for which

18 the funds were originally authorized and appro19 priated.

20 (4) INCIDENTAL TRANSFERS.—The Director of

21 the Office of Management and Budget, at such time

22 or times as the Director shall provide, is authorized

23 to make such determinations as may be necessary

24 with regard to the functions transferred by this sec25 tion, and to make such additional incidental disposi-
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1 tions of personnel, assets, liabilities, grants, con2 tracts, property, records, and unexpended balances

3 of appropriations, authorizations, allocations, and

4 other funds held, used, arising from, available to, or

5 to be made available in connection with such func6 tions, as may be necessary to carry out the provi7 sions of this section. The Director of the Office of

8 Management and Budget shall provide for the termi9 nation of the affairs of all entities terminated by this

10 section and for such further measures and disposi11 tions as may be necessary to effectuate the purposes

12 of this section.

13 (5) EFFECT ON PERSONNEL.—

14 (A) IN GENERAL.—Except as otherwise

15 provided by this section, the transfer pursuant

16 to this section of full-time personnel (except

17 special Government employees) and part-time

18 personnel holding permanent positions shall not

19 cause any such employee to be separated or re20 duced in grade or compensation for 1 year after

21 the date of transfer of such employee under this

22 section.

23 (B) EXECUTIVE SCHEDULE POSITIONS.—

24 Except as otherwise provided in this section,

25 any person who, on the day preceding the effec-
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1 tive date of this section, held a position com2 pensated in accordance with the Executive

3 Schedule prescribed in chapter 53 of title 5,

4 United States Code, and who, without a break

5 in service, is appointed in the Department of

6 Transportation to a position having duties com7 parable to the duties performed immediately

8 preceding such appointment shall continue to be

9 compensated in such new position at not less

10 than the rate provided for such previous posi11 tion, for the duration of the service of such per12 son in such new position.

13 (C) TERMINATION OF CERTAIN POSI14 TIONS.—Positions whose incumbents are ap15 pointed by the President, by and with the ad16 vice and consent of the Senate, the functions of

17 which are transferred by this section, shall ter18 minate on the effective date of this section.

19 (6) SAVINGS PROVISIONS.—

20 (A) CONTINUING EFFECT OF LEGAL DOCU21 MENTS.—All orders, determinations, rules, reg22 ulations, permits, agreements, grants, contracts,

23 certificates, licenses, registrations, privileges,

24 and other administrative actions—
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1 (i) which have been issued, made,

2 granted, or allowed to become effective by

3 the President, any Federal agency or offi4 cial thereof, or by a court of competent ju5 risdiction, in the performance of functions

6 which are transferred under this section,

7 and

8 (ii) which are in effect at the time this

9 section takes effect, or were final before

10 the effective date of this section and are to

11 become effective on or after the effective

12 date of this section,

13 shall continue in effect according to their terms

14 until modified, terminated, superseded, set

15 aside, or revoked in accordance with law by the

16 President, the Secretary of Transportation or

17 other authorized official, a court of competent

18 jurisdiction, or by operation of law.

19 (B) PROCEEDINGS NOT AFFECTED.—The

20 provisions of this section shall not affect any

21 proceedings, including notices of proposed rule22 making, or any application for any license, per23 mit, certificate, or financial assistance pending

24 before the Interstate Commerce Commission at

25 the time this section takes effect, with respect
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1 to functions transferred by this section but such

2 proceedings and applications shall be continued.

3 Orders shall be issued in such proceedings, ap4 peals shall be taken therefrom, and payments

5 shall be made pursuant to such orders, as if

6 this section had not been enacted, and orders

7 issued in any such proceedings shall continue in

8 effect until modified, terminated, superseded, or

9 revoked by a duly authorized official, by a court

10 of competent jurisdiction, or by operation of

11 law. Nothing in this subsection shall be deemed

12 to prohibit the discontinuance or modification

13 of any such proceeding under the same terms

14 and conditions and to the same extent that

15 such proceeding could have been discontinued

16 or modified if this section had not been enacted.

17 (C) SUITS NOT AFFECTED.—The provi18 sions of this section shall not affect suits com19 menced before the effective date of this section,

20 and in all such suits, proceedings shall be had,

21 appeals taken, and judgments rendered in the

22 same manner and with the same effect as if this

23 section had not been enacted.

24 (D) NONABATEMENT OF ACTIONS.—No

25 suit, action, or other proceeding commenced by
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1 or against the Interstate Commerce Commis2 sion, or by or against any individual in the offi3 cial capacity of such individual as an officer of

4 the Interstate Commerce Commission, shall

5 abate by reason of the enactment of this

6 section.

7 (E) ADMINISTRATIVE ACTIONS RELATING

8 TO PROMULGATION OF REGULATIONS.—Any ad9 ministrative action relating to the preparation

10 or promulgation of a regulation by the Inter11 state Commerce Commission relating to a func12 tion transferred under this section may be con13 tinued by the Department of Transportation

14 with the same effect as if this section had not

15 been enacted.

16 (7) TRANSITION.—The Secretary of Transpor17 tation is authorized to utilize—

18 (A) the services of such officers, employ19 ees, and other personnel of the Interstate Com20 merce Commission with respect to functions

21 transferred to the Department of Transpor22 tation by this section; and

23 (B) funds appropriated to such functions

24 for such period of time as may reasonably be
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1 needed to facilitate the orderly implementation

2 of this section.

3 (8) REFERENCES.—

4 (A) IN GENERAL.—Reference in any other

5 Federal law, Executive order, rule, regulation,

6 or delegation of authority, or any document of

7 or relating to—

8 (i) the Chairman or the Commis9 sioners of the Interstate Commerce Com10 mission with regard to functions trans11 ferred under subsection (b), shall be

12 deemed to refer to the Secretary of Trans13 portation; and

14 (ii) the Interstate Commerce Commis15 sion with regard to functions transferred

16 under subsection (b), shall be deemed to

17 refer to the Department of Transportation.

18 (B) POSITIONS.—Chapter 53 of title 5,

19 United States Code is amended—

20 (i) in section 5314, by striking

21 ‘‘Chairman, Interstate Commerce Commis22 sion.’’; and

23 (ii) in section 5315, by striking

24 ‘‘Members, Interstate Commerce Commis25 sion.’’.
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1 (9) ADDITIONAL CONFORMING AMENDMENTS.—

2 (A) RECOMMENDED LEGISLATION.—After

3 consultation with the appropriate committees of

4 the Congress and the Director of the Office of

5 Management and Budget, the Secretary of

6 Transportation shall prepare and submit to the

7 Congress recommended legislation containing

8 technical and conforming amendments to reflect

9 the changes made by this section.

10 (B) SUBMISSION TO THE CONGRESS.—No

11 later than 6 months after the effective date of

12 this section, the Secretary of Transportation

13 shall submit the recommended legislation re14 ferred to under subparagraph (A).

15 (11) REPEALER.—Chapter 103 of title 49,

16 United States Code, is repealed.

17 (12) EFFECTIVE DATE.—This section shall take

18 effect 180 days after the date of enactment.

19 SEC. 4. REDUCTION IN LEGISLATIVE BRANCH.

20 The outlays for the legislative branch for fiscal year

21 1993 shall not exceed an amount equal to 85 percent of

22 the outlays for the legislative branch for fiscal year 1993.

23 SEC. 5. HELIUM RESERVES.

24 (a) REQUIREMENT TO SELL.—Subject to subsections

25 (b) and (c), the Secretary of the Interior shall sell to one
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1 or more joint ventures as described in subsection (d) all

2 right, title, and interest of the United States in and to—

3 (1) the helium reserves established pursuant to

4 the Helium Act (50 U.S.C. 167 et seq.); and

5 (2) the facilities and accessories to the helium

6 reserves.

7 (b) CONSIDERATION.—The Secretary of the Interior

8 may not convey any interest in a helium reserve pursuant

9 to subsection (a) for less than the fair market value of

10 the interest conveyed, as determined by the Secretary of

11 the Interior.

12 (c) RETENTION FOR DEFENSE PURPOSES.—In con13 sultation with the Secretary of Defense, the Secretary of

14 the Interior shall retain such helium reserves and facilities

15 and accessories to helium reserves as are necessary to pro16 vide for the defense and security of the United States in

17 time of war or national emergency.

18 (d) JOINT VENTURE.—Participants in the joint ven19 ture referred to in subsection (a) shall consist of—

20 (1) employees at the helium reserves and facili21 ties and accessories to helium reserves on the date

22 of enactment of this Act; and

23 (2) other persons.
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1 SEC. 6. REDUCTION IN FEDERAL ADMINISTRATIVE AND

2 OVERHEAD COSTS EXCLUDING TRAVEL.

3 The administrative and overhead budget (excluding

4 travel expenses) for each non-defense executive branch

5 agency (excluding the Postal Service) for fiscal year 1995

6 shall not exceed an amount equal to 99 percent of the

7 budget level available to such agency for fiscal year 1994.

8 SEC. 7. REPEAL OF DAVIS-BACON ACT.

9 The Act of March 3, 1931 (known as the Davis10 Bacon Act) (40 U.S.C. 276a et seq.) is repealed.

11 SEC. 8. ELIMINATION OF HONEY PRICE SUPPORT AND

12 WOOL AND MOHAIR PRICE SUPPORT PRO13 GRAMS.

14 (a) ELIMINATION OF PROGRAMS.—

15 (1) HONEY PROGRAM.—Sections 207 and 405A

16 of the Agricultural Act of 1949 (7 U.S.C. 1446h and

17 1425a) are repealed.

18 (2) WOOL AND MOHAIR PROGRAM.—The Na19 tional Wool Act of 1954 (7 U.S.C. 1781 et seq.) is

20 repealed.

21 (b) CONFORMING AMENDMENTS.—

22 (1) AUTOMATIC SPENDING INCREASES.—Sec23 tion 256(a) of the Balanced Budget and Emergency

24 Deficit Control Act of 1985 (2 U.S.C. 906(a)) is

25 amended—

26 (A) by striking paragraph (1); and
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1 (B) by redesignating paragraphs (2) and

2 (3) as paragraphs (1) and (2), respectively.

3 (2) MARKETING ORDERS.—Section 8c(2)(B) of

4 the Agricultural Adjustment Act (7 U.S.C.

5 608c(2)(B)), reenacted with amendments by the Ag6 ricultural Marketing Agreement Act of 1937, is

7 amended by striking ‘‘honey’’ and ‘‘wool, mohair,’’.

8 (3) PAYMENT LIMITATIONS.—Section 1001(2)

9 of the Food Security Act of 1985 (7 U.S.C.

10 1308(2)) is amended—

11 (A) in subparagraph (B)(iii), by striking

12 ‘‘(other than honey)’’; and

13 (B) by striking subparagraph (C).

14 (4) DESIGNATED NONBASIC AGRICULTURAL

15 COMMODITIES.—Section 201(a) of the Agricultural

16 Act of 1949 (7 U.S.C. 1446(a)) is amended by strik17 ing ‘‘honey,’’.

18 (5) OTHER NONBASIC AGRICULTURAL COMMOD19 ITIES.—Section 301 of the Agricultural Act of 1949

20 (7 U.S.C. 1447) is amended by inserting after

21 ‘‘nonbasic agricultural commodity’’ the following:

22 ‘‘(other than honey, wool, or mohair)’’.

23 (6) DEFINITIONS.—Section 408(k) of the Agri24 cultural Act of 1949 (7 U.S.C. 1428(k)) is amended

25 by striking ‘‘honey,’’ each place it appears.
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1 (7) POWERS OF COMMODITY CREDIT CORPORA2 TION.—Section 5(a) of the Commodity Credit Cor3 poration Charter Act (15 U.S.C. 714c(a)) is amend4 ed by inserting after ‘‘agricultural commodities’’ the

5 following: ‘‘(other than honey, wool, or mohair)’’.

6 (c) TRANSITION.—The amendments made by this

7 section shall not affect the liability of any person under

8 any provision of law as in effect before the application of

9 the amendments in accordance with subsection (d).

10 (d) APPLICATION OF AMENDMENTS.—The amend11 ments made by this section shall apply beginning with the

12 marketing year that begins after the date of enactment

13 of this Act.

14 SEC. 9. SUBSTITUTION OF RENTAL VOUCHERS FOR PUBLIC

15 HOUSING CONSTRUCTION.

16 (a) TERMINATION OF ASSISTANCE FOR PUBLIC

17 HOUSING.—

18 (1) LOAN AUTHORITY.—After September 30,

19 1993, the Secretary of Housing and Urban Develop20 ment may not enter into any new commitment to

21 make loans under section 4 of the United States

22 Housing Act of 1937 to public housing agencies for

23 the development or acquisition of public housing

24 projects by such agencies.
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1 (2) CONTRIBUTION AUTHORITY.—After Sep2 tember 30, 1993, the date of the enactment of this

3 Act, the Secretary of Housing and Urban Develop4 ment may not enter into any new contract to make

5 contributions under section 5 of the United States

6 Housing Act of 1937 to public housing agencies for

7 the development or acquisition of public housing

8 projects by such agencies.

9 (3) EXISTING COMMITMENTS.—After Septem10 ber 30, 1993, the Secretary of Housing and Urban

11 Development may make contributions and loans for

12 the development or acquisition of public housing

13 projects only pursuant to legally binding commit14 ments to make such loans or contracts for such con15 tributions entered into on or before such date and

16 for which amounts were appropriated before such

17 date.

18 (4) INAPPLICABILITY TO INDIAN HOUSING.—

19 The provisions of this subsection shall not apply to

20 public housing developed pursuant to a contract be21 tween the Secretary of Housing and Urban Develop22 ment and an Indian housing authority.

23 (b) INCREASE OF VOUCHER AUTHORITY.—Any budg24 et authority available under section 5(c) of the United

25 States Housing Act of 1937 for voucher assistance under
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1 section 8(o) of such Act is authorized to be increased on

2 or after October 1, 1993, by the amount necessary to pro3 vide voucher assistance under such section for the same

4 number of families to be provided dwelling units in public

5 housing pursuant to amounts appropriated for fiscal year

6 1993 for public housing construction. Vouchers for rental

7 assistance provided with the amounts made available

8 under this subsection may be used for the rental of dwell9 ing units or costs of residency, as determined by qualified

10 voucher recipients.

11 (c) DEFINITIONS.—For purposes of this section, the

12 terms ‘‘Indian housing authority’’, ‘‘project’’, ‘‘public

13 housing’’, and ‘‘public housing agency’’ have the meanings

14 given the terms in section 3(b) of the United States Hous15 ing Act of 1937.

16 SEC. 10. PROHIBITION OF HUD SPECIAL PURPOSE GRANTS.

17 (a) IN GENERAL.—Notwithstanding any other law,

18 the Secretary of Housing and Urban Development may

19 not obligate or expend any budget authority provided in

20 any appropriation Act for projects or activities of the De21 partment of Housing and Urban Development not pre22 viously authorized in law, including any budget authority

23 provided for special projects that are specified only in the

24 joint explanatory statement for the conference report ac25 companying the bill that was approved as such appropria-
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1 tions Act. Any budget authority provided for any such

2 project or activity shall be considered to be rescinded im3 mediately upon the enactment of the Act providing such

4 budget authority, unless the provision of law providing

5 such budget authority explicitly provides that this section

6 shall not apply.

7 (b) FISCAL YEAR 1993 AMOUNTS.—Of the

8 $260,000,000 available for special projects in accordance

9 with the terms and conditions specified for such grants

10 in the committee of conference report and statement of

11 the managers (H. Rept. 102–902) accompanying H.R.

12 5679, and reserved from amounts appropriated under the

13 heading ‘‘HOUSING PROGRAMS—ANNUAL CONTRIBUTIONS

14 FOR ASSISTED HOUSING’’ under title II of the Depart15 ments of Veterans Affairs and Housing and Urban Devel16 opment, and Independent Agencies Appropriations Act,

17 1993 (Public Law 102–389; 106 Stat. 1584), any

18 amounts not obligated or expended before the date of the

19 enactment of this Act are hereby rescinded. No amounts

20 appropriated by such Act may be obligated or expended

21 for any such special project on or after the date of the

22 enactment of this Act.
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1 SEC. 11. COMPETITIVE BIDDING FOR PUBLIC HOUSING

2 MODERNIZATION ACTIVITIES.

3 Section 14 of the United States Housing Act of 1937

4 (42 U.S.C. 1437l) is amended—

5 (1) in subsection (d)—

6 (A) in paragraph (3), by striking ‘‘and’’ at

7 the end;

8 (B) in paragraph (4), by striking the pe9 riod at the end and inserting ‘‘; and’’; and

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

11 paragraph:

12 ‘‘(5) a description of the competitive bidding

13 procedures to be used by the public housing agency

14 for contracts for acquiring supplies and services

15 using assistance provided pursuant to subsection

16 (b).’’;

17 (2) in subsection (e)(1)—

18 (A) in subparagraph (G), by striking

19 ‘‘and’’ at the end;

20 (B) by redesignating subparagraph (H) as

21 subparagraph (I); and

22 (C) by inserting after subparagraph (G)

23 the following new subparagraph:

24 ‘‘(H) a description of the competitive bidding

25 procedures to be used by the public housing agency

26 for contracts for acquiring supplies and services
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1 using assistance provided pursuant to subsection

2 (b).’’;

3 (3) by striking the 2d sentence of subsection

4 (e)(3)(A) and inserting the following new sentence:

5 ‘‘A public housing agency may expend assistance for

6 any activities and work consistent with the approved

7 plan as the agency determines appropriate, but shall

8 comply with the competitive bidding procedures of

9 the agency established in accordance with the stand10 ards issued by the Secretary under subsection

11 (g)(2).’’; and

12 (4) in subsection (g)—

13 (A) by inserting ‘‘(1)’’ after ‘‘(g)’’;

14 (B) by inserting ‘‘(A)’’ after ‘‘that such

15 agency’’;

16 (C) by inserting before the period at the

17 end the following: ‘‘, and (B) in acquiring sup18 plies and services using assistance provided pur19 suant to subsection (b), has established and

20 complied with competitive bidding procedures in

21 accordance with the standards issued by the

22 Secretary under paragraph (2)’’; and

23 (D) by adding at the end the following new

24 paragraph:
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1 ‘‘(2) Each public housing agency that receives assist2 ance under subsection (b) shall establish competitive bid3 ding procedures for expending such assistance for activi4 ties, work, supplies, and services for the purpose under

5 such subsection and shall expend such assistance in ac6 cordance with the procedures. The Secretary shall issue

7 regulations requiring and establishing standards for such

8 competitive bidding procedures.’’.

9 SEC. 12. DISCLOSURE OF TENANT INCOME FOR PURPOSES

10 OF ADMINISTRATING INCOME-BASED RENT

11 SUBSIDY PROGRAMS.

12 Subparagraph (D) of section 6103(l)(7) of the Inter13 nal Revenue Code of 1986 (relating to disclosure of return

14 information) is amended by striking ‘‘and’’ at the end of

15 clause (vii), by striking the period at the end of clause

16 (viii) and inserting ‘‘; and’’ and by inserting after clause

17 (viii) the following new clause:

18 ‘‘(ix) any program of assistance for

19 housing administered by the Secretary of

20 Housing and Urban Development (I) that

21 provides assistance in the form of a grant,

22 contract, loan, loan guarantee, cooperative

23 agreement, interest subsidy, insurance, or

24 direct appropriation, and (II) under which

25 rent payments, with respect to all or some
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1 of the units in the housing assisted, are

2 limited, restricted, or determined under

3 law or regulation based on the income of

4 the occupying families.’’.

5 SEC. 13. REDUCTION IN GOVERNMENT CONTRIBUTIONS TO

6 THE THRIFT SAVINGS PLAN.

7 Section 8432(c) of title 5, United States Code, is

8 amended—

9 (1) in paragraph (1)(A) by inserting ‘‘one-half

10 of’’ before ‘‘1 percent’’;

11 (2) in paragraph (2)(B)(i) by inserting ‘‘one12 half of’’ before ‘‘such portion’’; and

13 (3) in paragraph (2)(B)(ii) by striking ‘‘one14 half’’ and inserting ‘‘one-fourth’’.

15 SEC. 14. COMPETITIVE BIDDING FOR RADIO SPECTRUM.

16 (a) COMPETITIVE BIDDING AUTHORIZED.—Section

17 309 of the Communications Act of 1934 (47 U.S.C. 309)

18 is amended by adding at the end the following new sub19 section:

20 ‘‘(j)(1)(A) The Commission shall use competitive bid21 ding for awarding all initial licenses or new construction

22 permits, subject to the exclusions listed in subsection

23 (j)(2). The Commission shall require potential bidders to

24 file a first-stage application indicating an intent to partici25 pate in the competitive bidding process and containing
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1 such other information as the Commission finds necessary.

2 After conducting the bidding, the Commission shall re3 quire the winning bidder to submit a second-stage applica4 tion. Upon determining that such application is acceptable

5 for filing and that the applicant is qualified pursuant to

6 subsection (j)(1)(B), the Commission shall grant a permit

7 or license.

8 ‘‘(B) No construction permit or license shall be grant9 ed to an applicant selected pursuant to subparagraph (A)

10 unless the Commission determines that such applicant is

11 qualified pursuant to section 308(b) and section 309(a)

12 of the Communications Act, on the basis of the informa13 tion contained in the first- and second-stage applications

14 submitted under subparagraph (A).

15 ‘‘(C) Each participant in the competitive bidding

16 process is subject to the schedule of changes contained in

17 section 8 of the Communications Act (47 U.S.C. 158).

18 ‘‘(D) The Commission shall have the authority in

19 awarding construction permits or licenses under competi20 tive bidding procedures to (i) define the geographic and

21 frequency limitations and technical requirements, if any,

22 of such permits or licenses; (ii) establish minimum accept23 able competitive bids; and (iii) establish other appropriate

24 conditions on such permits and licenses that will serve the

25 public interest.
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1 ‘‘(E) The Commission shall, within eighteen months

2 after the date of enactment of this subsection, following

3 public notice and comment proceedings, adopt rules estab4 lishing competitive bidding procedures under this sub5 section, including the method of bidding and the basis for

6 payment (such as flat fees, fixed or variable royalties, com7 binations of flat fees and royalties, or other reasonable

8 forms of payment).

9 ‘‘(2) Competitive bidding shall not apply to—

10 ‘‘(A) license renewals;

11 ‘‘(B) the United States Government and State

12 or local government entities;

13 ‘‘(C) amateur operator services, public radio

14 broadcast services, public television broadcast serv15 ices, public safety services, and radio astronomy

16 services;

17 ‘‘(D) private radio end-user licenses, such as

18 Specialized Mobile Radio Service (SMRS), maritime,

19 and aeronautical end-user licenses;

20 ‘‘(E) any license grant to a non-United States

21 Government licensee being moved from its current

22 frequency assignment to a different one by the Com23 mission in order to implement the goals and objec24 tives underlying the ‘Emerging Telecommunications

25 Technologies Act of 1991’;
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1 ‘‘(F) any other service, class of services, or as2 signments that the Commission determines, after

3 conducting public comment and notice proceedings,

4 should be exempt from competitive bidding because

5 of public interest factors warranting an exemption.

6 ‘‘(3) Monies received from competitive bidding pursu7 ant to this subsection shall be deposited in the general

8 fund of the United States Treasury, pursuant to the provi9 sions enacted in appropriations acts.’’.

10 (b) RANDOM SELECTION NOT TO APPLY WHEN

11 COMPETITIVE BIDDING REQUIRED.—Section 309(i)(1) of

12 the Communications Act of 1934 (47 U.S.C. 309(i)(1))

13 is amended by inserting after ‘‘selection’’ the following: ‘‘,

14 except in instances where competitive bidding procedures

15 are required under section 309(j)’’.

16 (c) SPECTRUM ALLOCATION DECISIONS.—Section

17 303 of the Communications Act is amended to add a new

18 subsection (v):

19 ‘‘(v) In making spectrum allocation decisions among

20 services that are subject to competitive bidding, the Com21 mission is authorized to consider as one factor among oth22 ers taken into account in making its determination, the

23 relative economic values and other public interest benefits

24 of the proposed uses as reflected in the potential revenues
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1 that would be collected under its competitive bidding pro2 cedures.’’.

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