I 
107TH CONGRESS 
2D SESSION 
H. R. 5638
To amend the National Telecommunications and Information Administration 
Organization Act to facilitate the reallocation of spectrum from govern-
mental to commercial users. 
IN THE HOUSE OF REPRESENTATIVES 
OCTOBER 10, 2002
Mr. UPTON (for himself and Mr. TAUZIN) introduced the following bill; which 
was referred to the Committee on Energy and Commerce, and in addition 
to the Committee on the Budget, for a period to be subsequently deter-
mined by the Speaker, in each case for consideration of such provisions 
as fall within the jurisdiction of the committee concerned 
A BILL 
To amend the National Telecommunications and Information 
Administration Organization Act to facilitate the re-
allocation of spectrum from governmental to commercial 
users.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Commercial Spectrum 
Enhancement Act’’.
‘‘(A) the 216–220 megahertz band, 1432–
1435 megahertz band, 1710–1755 megahertz 
band, and 2385–2390 megahertz band of fre-
quencies; and 
‘‘(B) any other band of frequencies reallo-
cated from Federal use to non-Federal use after 
January 1, 2002. 
‘‘(3) DEFINITION OF RELOCATION COSTS.—For 
purposes of this subsection, the term ‘relocation 
costs’ means the costs incurred by a Federal entity 
to achieve comparable capability of systems, regard-
less of whether that capability is achieved by relo-
cating to a new frequency assignment or by utilizing 
an alternative technology. Such costs include—
‘‘(A) the costs of any modification or re-
placement of equipment, software, facilities, op-
erating manuals, training costs, or regulations 
that are attributable to relocation; 
‘‘(B) the costs of all engineering, equip-
ment, software, site acquisition and construc-
tion costs, as well as any legitimate and pru-
dent transaction expense, including outside con-
sultants, and reasonable additional costs in-
curred by the Federal entity that are attrib-
utable to relocation, including increased recur-
ring costs associated with the replacement fa-
cilities; 
‘‘(C) the costs of engineering studies, eco-
nomic analyses, or other expenses reasonably 
incurred in calculating the estimated relocation 
costs that are provided to the Commission pur-
suant to paragraph (4) of this subsection; 
‘‘(D) the one-time costs of any modifica-
tion of equipment reasonably necessary to ac-
commodate commercial use of such frequencies 
prior to the termination of the Federal entity’s 
primary allocation or protected status, when the 
eligible frequencies as defined in paragraph (2) 
of this subsection are made available for private 
sector uses by competitive bidding and a Fed-
eral entity retains primary allocation or pro-
tected status in those frequencies for a period 
of time after the completion of the competitive 
bidding process; and 
‘‘(E) the costs associated with the acceler-
ated replacement of systems and equipment if 
such acceleration is necessary to ensure the 
timely relocation of systems to a new frequency 
assignment.’’.
‘‘(4) NOTICE TO COMMISSION OF ESTIMATED 
RELOCATION COSTS.—
‘‘(A) The Commission shall notify the 
NTIA at least 9 months prior to the commence-
ment of any auction of eligible frequencies de-
fined in paragraph (2). At least 6 months prior 
to the commencement of any such auction, the 
NTIA, on behalf of the Federal entities and 
after review by the Office of Management and 
Budget, shall notify the Commission of esti-
mated relocation costs and timelines for such 
relocation. 
‘‘(B) Upon timely request of a Federal en-
tity, the NTIA shall provide such entity with in-
formation regarding an alternative frequency 
assignment or assignments to which their 
radiocommunications operations could be relo-
cated for purposes of calculating the estimated 
relocation costs and timelines to be submitted 
to the Commission pursuant to subparagraph 
(A). 
‘‘(C) To the extent practicable and con-
sistent with national security considerations, 
the NTIA shall provide the information re-
quired by subparagraphs (A) and (B) by the ge-
ographic location of the Federal entities’ facili-
ties or systems and the frequency bands used 
by such facilities or systems. 
‘‘(5) IMPLEMENTATION OF PROCEDURES.—The 
NTIA shall take such actions as necessary to ensure 
the timely relocation of Federal entities’ spectrum-
related operations from frequencies defined in para-
graph (2) to frequencies or facilities of comparable 
capability. Upon a finding by the NTIA that a Fed-
eral entity has achieved comparable capability of sys-
tems by relocating to a new frequency assignment or 
by utilizing an alternative technology, the NTIA 
shall terminate the entity’s authorization and notify 
the Commission that the entity’s relocation has been 
completed. The NTIA shall also terminate such enti-
ty’s authorization if the NTIA determines that the 
entity has unreasonably failed to comply with the 
timeline for relocation submitted by the Director of 
the Office of Management and Budget under section 
118(d)(2)(B).’’. 
SEC. 3. MINIMUM AUCTION RECEIPTS AND DISPOSITION OF 
PROCEEDS. 
(a) AUCTION DESIGN.—Section 309(j)(3) of the 
Communications Act of 1934 (47 U.S.C. 309(j)(3)) is 
amended—
(1) by striking ‘‘and’’ at the end of subpara-
graph (D); 
(2) by striking the period at the end of sub-
paragraph (E) and inserting ‘‘; and’’; and 
(3) by adding at the end the following new sub-
paragraph: 
‘‘(F) for any auction of eligible frequencies 
described in section 113(g)(2) of the National 
Telecommunications and Information Adminis-
tration Organization Act (47 U.S.C. 923(g)(2)), 
the recovery of 110 percent of estimated reloca-
tion costs as provided to the Commission pursu-
ant to section 113(g)(4) of such Act.’’. 
(b) SPECIAL AUCTION PROVISIONS FOR ELIGIBLE 
FREQUENCIES.—Section 309(j) of such Act is further 
amended by adding at the end the following new para-
graph: 
‘‘(15) SPECIAL AUCTION PROVISIONS FOR ELI-
GIBLE FREQUENCIES.—
‘‘(A) SPECIAL REGULATIONS.—The Com-
mission shall revise the regulations prescribed 
under paragraph (4)(F) of this subsection to 
prescribe methods by which the total cash pro-
ceeds from any auction of eligible frequencies 
described in section 113(g)(2) of the National
Telecommunications and Information Adminis-
tration Organization Act (47 U.S.C. 923(g)(2)) 
shall at least equal 110 percent of the total esti-
mated relocation costs provided to the Commis-
sion pursuant to section 113(g)(4) of such Act. 
‘‘(B) CONCLUSION OF AUCTIONS CONTIN-
GENT ON MINIMUM PROCEEDS.—The Commis-
sion shall not conclude any auction of eligible 
frequencies described in section 113(g)(2) of 
such Act if the total cash proceeds attributable 
to such spectrum are less than 110 percent of 
the total estimated relocation costs provided to 
the Commission pursuant to section 113(g)(4) 
of such Act. If the Commission is unable to 
conclude an auction for the foregoing reason, 
the Commission shall cancel the auction, return 
within 45 days from the auction cancellation 
date any deposits from participating bidders 
held in escrow, and absolve such bidders from 
any obligation to bid in any subsequent reauc-
tion of such spectrum. 
‘‘(C) AUTHORITY TO ISSUE PRIOR TO DE-
AUTHORIZATION.—In any auction conducted 
under the regulations required by subparagraph 
(A), the Commission may grant a license as-
signed for the use of eligible frequencies prior 
to the termination of an eligible Federal entity’s 
authorization. However, the Commission shall 
condition such license by requiring that the li-
censee cannot cause harmful interference to 
such Federal entity until such entity’s author-
ization has been terminated by the National 
Telecommunications and Information Adminis-
tration.’’. 
(c) DEPOSIT OF PROCEEDS.—Paragraph (8) of sec-
tion 309(j) of the Communications Act of 1934 (47 U.S.C. 
309(j)) is amended—
(1) in subparagraph (A), by inserting ‘‘or sub-
paragraph (D)’’ after ‘‘subparagraph (B); and 
(2) by adding at the end the following new sub-
paragraph: 
‘‘(D) DISPOSITION OF CASH PROCEEDS.—
Cash proceeds attributable to the auction of any 
eligible 
frequencies 
described 
in 
section 
113(g)(2) of the National Telecommunications 
and Information Administration Organization 
Act (47 U.S.C. 923(g)(2)) shall be deposited in 
the Spectrum Relocation Fund established 
under section 118 of such Act, and shall be 
available in accordance with that section.’’.
SEC. 4. ESTABLISHMENT OF FUND AND PROCEDURES. 
Part B of the National Telecommunications and In-
formation Administration Organization Act is amended by 
adding after section 117 (47 U.S.C. 927) the following 
new section: 
‘‘SEC. 118. SPECTRUM RELOCATION FUND. 
‘‘(a) ESTABLISHMENT OF SPECTRUM RELOCATION 
FUND.—There is established on the books of the Treasury 
a separate fund to be known as the ‘Spectrum Relocation 
Fund’ (in this section referred to as the ‘Fund’), which 
shall be administered by the Office of Management and 
Budget (in this section referred to as ‘OMB’), in consulta-
tion with the NTIA. 
‘‘(b) CREDITING OF RECEIPTS.—The Fund shall be 
credited 
with 
the 
amounts 
specified 
in 
section 
309(j)(8)(D) of the Communications Act of 1934 (47 
U.S.C. 309(j)(8)(D)). The proceeds attributable to each 
auction of any eligible frequencies described in section 
113(g)(2) of this Act shall be deposited in a separate ac-
count in the Fund. 
‘‘(c) USED
TO
PAY
RELOCATION
COSTS.—The 
amounts in an account in the Fund from an auction of 
eligible frequencies are authorized to be used to pay relo-
cation costs, as defined in section 113(g)(3) of this Act, 
of an eligible Federal entity incurring such costs with re-
spect to relocation from those frequencies.
‘‘(d) FUND AVAILABILITY.—
‘‘(1) APPROPRIATION.—There are hereby ap-
propriated from the Fund such sums as are required 
to pay the relocation costs specified in subsection 
(c). 
‘‘(2) TRANSFER
CONDITIONS.—None of the 
funds provided under this subsection may be trans-
ferred to any eligible Federal entity—
‘‘(A) unless the Director of OMB has de-
termined, in consultation with the NTIA, the 
appropriateness of such costs and the timeline 
for relocation; and 
‘‘(B) until 30 days after the Director of 
the Office of Management and Budget has sub-
mitted to the House and Senate Committees on 
Appropriations, the House Committee on En-
ergy and Commerce, and the Senate Committee 
on Commerce, Science, and Transportation a 
detailed plan describing how the sums trans-
ferred from the Fund will be used to pay relo-
cation costs in accordance with such subsection 
and the timeline for such relocation. 
‘‘(3) REVERSION OF UNUSED FUNDS.—Any un-
expended balances of an account in the Fund that 
are remaining after the payment of the relocation
costs that are payable from such account shall revert 
to and be deposited in the general fund of the Treas-
ury. Such reversion and deposit shall be made not 
later than the end of the fiscal year in which the 
NTIA has notified the Commission that all of the 
entities whose relocation costs are payable from such 
account have either—
‘‘(A) completed their relocation; or 
‘‘(B) been determined by NTIA to have 
unreasonably failed to complete such relocation 
in accordance with the timeline required by 
paragraph (2)(A). 
‘‘(e) TRANSFER TO ELIGIBLE FEDERAL ENTITIES.—
‘‘(1) TRANSFER.—Amounts made available pur-
suant to subsection (d) shall be transferred to eligi-
ble Federal entities, as defined in section 113(g)(1) 
of this Act. An eligible Federal entity may, subject 
to subsection (d)(2) of this section and the avail-
ability of funds in the relevant account, receive more 
than one such transfer, but all such transfers are 
subject to prior approval by the Director of OMB. 
Such transferred amounts shall be credited to the 
account of the eligible Federal entity which has in-
curred, or will incur, such costs, and shall remain 
available until the NTIA has notified the Commis-
sion that the Federal entity has completed the relo-
cation, or the NTIA has determined that such entity 
has unreasonably failed to complete such relocation 
in accordance with the timeline required by para-
graph (2)(A). 
‘‘(2) RETRANSFER TO FUND.—An eligible Fed-
eral entity that has received such amounts shall re-
port its expenditures to OMB and shall transfer any 
amounts in excess of actual relocation costs back to 
the account in the Fund from which it was trans-
ferred immediately after the NTIA has notified the 
Commission that the entity’s relocation is complete, 
or has determined that such entity has unreasonably 
failed to complete such relocation in accordance with 
the timeline required by paragraph (2)(A).’’. 
SEC. 5. CONSTRUCTION. 
Nothing in this Act is intended to modify section 
1062(b) of the National Defense Authorization Act for 
Fiscal Year 2000 (Public Law 106–65). 
SEC. 6. EXEMPTION FROM SEQUESTRATION. 
The Spectrum Relocation Fund shall be exempt from 
reduction under any order issued under section 254 of the 
Balanced Budget and Emergency Deficit Control Act of 
1985, as amended.
SEC. 7. REPORT. 
The National Telecommunications and Information 
Administration shall submit an annual report to the Com-
mittees on Appropriations and Energy and Commerce of 
the House of Representatives and the Committees on Ap-
propriations and Commerce, Science, and Transportation 
of the Senate on—
(1) the progress made in adhering to the 
timelines applicable to relocation from eligible fre-
quencies required under section 118(d)(2)(A) of the 
National Telecommunications and Information Ad-
ministration Organization Act, separately stated on 
a communication system-by-system basis and on an 
auction-by-auction basis; and 
(2) with respect to each relocated communica-
tion system and auction, a statement of the estimate 
of relocation costs required under section 113(g)(4) 
of such Act, the actual relocations costs incurred, 
and the amount of such costs paid from the Spec-
trum Relocation Fund.
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