quencies defined in paragraph (2). At least 6 
months prior to the commencement of any such 
auction, the NTIA, on behalf of the Federal en-
tities and after review by the Office of Manage-
ment and Budget, shall notify the Commission 
of estimated 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) NOTICE TO CONGRESSIONAL COMMITTEES 
AND GAO.—The NTIA shall, at the time of providing
an initial estimate of relocation costs to the Commis-
sion under paragraph (4)(A), submit to Committees 
on Appropriations and Energy and Commerce of the 
House of Representatives for approval, to the Com-
mittees on Appropriations and Commerce, Science, 
and Transportation of the Senate for approval, and 
to the Comptroller General a copy of such estimate 
and the timelines for relocation. Unless disapproved 
within 30 days, the estimate shall be approved. If 
disapproved, the NTIA may resubmit a revised ini-
tial estimate. 
‘‘(6) 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. 203. 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 after the auction cancellation
date any deposits from participating bidders 
held in escrow, and absolve such bidders from 
any obligation to the United States to bid in 
any subsequent reauction 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. 204. 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)). 
‘‘(c) USED
TO
PAY
RELOCATION
COSTS.—The 
amounts in the Fund from auctions of eligible frequencies 
are authorized to be used to pay relocation costs, as de-
fined in section 113(g)(3) of this Act, of an eligible Fed-
eral entity incurring such costs with respect 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 
OMB has submitted to the Committees on Ap-
propriations and Energy and Commerce of the 
House of Representatives for approval, to the 
Committees on Appropriations and Commerce,
Science, and Transportation of the Senate for 
approval, and to the Comptroller General a de-
tailed plan describing specifically how the sums 
transferred from the Fund will be used to pay 
relocation costs in accordance with such sub-
section and the timeline for such relocation. 
Unless disapproved within 30 days, the amounts in 
the Fund shall be available immediately. If the plan 
is disapproved, the Director may resubmit a revised 
plan. 
‘‘(3) REVERSION
OF
UNUSED
FUNDS.—Any 
auction proceeds in the Fund that are remaining 
after the payment of the relocation costs that are 
payable from the Fund shall revert to and be depos-
ited in the general fund of the Treasury not later 
than 8 years after the date of the deposit of such 
proceeds to the Fund. 
‘‘(e) TRANSFER TO ELIGIBLE FEDERAL ENTITIES.— 
‘‘(1) TRANSFER.— 
‘‘(A) Amounts made available pursuant to 
subsection (d) shall be transferred to eligible 
Federal entities, as defined in section 113(g)(1) 
of this Act. 
‘‘(B) An eligible Federal entity may receive 
more than one such transfer, but if the sum of
the subsequent transfer or transfers exceeds 10 
percent of the original transfer— 
‘‘(i) such subsequent transfers are 
subject to prior approval by the Director of 
OMB as required by subsection (d)(2)(A); 
‘‘(ii) the notice to the committees con-
taining the plan required by subsection 
(d)(2)(B) shall be not less than 45 days 
prior to the date of the transfer that 
causes such excess above 10 percent; 
‘‘(iii) such notice shall include, in ad-
dition to such plan, an explanation of need 
for such subsequent transfer or transfers; 
and 
‘‘(iv) the Comptroller General shall, 
within 30 days after receiving such plan, 
review such plan and submit to such com-
mittees an assessment of the explanation 
for the subsequent transfer or transfers. 
‘‘(C) Such transferred amounts shall be 
credited to the appropriations account of the el-
igible Federal entity which has incurred, or will 
incur, such costs, and shall, subject to para-
graph (2), remain available until expended.
‘‘(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 Fund immediately after the NTIA has notified 
the Commission that the entity’s relocation is com-
plete, or has determined that such entity has unrea-
sonably failed to complete such relocation in accord-
ance with the timeline required by subsection 
(d)(2)(A).’’. 
SEC. 205. TELECOMMUNICATIONS DEVELOPMENT FUND. 
Section 714(f) of the Communications Act of 1934 
(47 U.S.C. 614(f)) is amended to read as follows: 
‘‘(f) LENDING AND CREDIT OPERATIONS.—Loans or 
other extensions of credit from the Fund shall be made 
available to an eligible small business on the basis of— 
‘‘(1) the analysis of the business plan of the eli-
gible small business; 
‘‘(2) the reasonable availability of collateral to 
secure the loan or credit extension; 
‘‘(3) the extent to which the loan or credit ex-
tension promotes the purposes of this section; and 
‘‘(4) other lending policies as defined by the 
Board.’’.
SEC. 206. CONSTRUCTION. 
Nothing in this title is intended to modify section 
1062(b) of the National Defense Authorization Act for 
Fiscal Year 2000 (Public Law 106–65). 
SEC. 207. ANNUAL 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, the Committees on Appro-
priations and Commerce, Science, and Transportation of 
the Senate, and the Comptroller General 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.
SEC. 208. PRESERVATION OF AUTHORITY; NTIA REPORT 
REQUIRED. 
(a) SPECTRUM
MANAGEMENT
AUTHORITY
RE-
TAINED.—Except as provided with respect to the bands 
of frequencies identified in section 113(g)(2)(A) of the Na-
tional Telecommunications and Information Administra-
tion Organization Act (47 U.S.C. 923(g)(2)(A)) as amend-
ed by this title, nothing in this title or the amendments 
made by this title shall be construed as limiting the Fed-
eral Communications Commission’s authority to allocate 
bands of frequencies that are reallocated from Federal use 
to non-Federal use for unlicensed, public safety, shared, 
or non-commercial use. 
(b) NTIA REPORT REQUIRED.—Within 1 year after 
the date of enactment of this Act, the Administrator of 
the National Telecommunications and Information Ad-
ministration shall submit to the Energy and Commerce 
Committee of the House of Representatives and the Com-
merce, Science, and Transportation Committee of the Sen-
ate a report on various policy options to compensate Fed-
eral entities for relocation costs when such entities’ fre-
quencies are allocated by the Commission for unlicensed, 
public safety, shared, or non-commercial use.
(2) The extent to which requiring entities to ob-
tain licenses through competitive bidding places 
those entities at a competitive or financial disadvan-
tage to offer services similar to entities that did not 
acquire licenses through competitive bidding. 
(3) The effect, if any, of the use of competitive 
bidding and the resulting diversion of licensees’ fi-
nancial resources on the introduction of new services 
including the quality, pace, and scope of the offering 
of such services to the public. 
(4) The effect, if any, of participation in com-
petitive bidding by incumbent spectrum license hold-
ers as applicants or investors in an applicant, includ-
ing a discussion of any additional effect if such ap-
plicant qualified for bidding credits as a designated 
entity. 
(5) The effect on existing license holders and 
consumers of services offered by these providers of 
the Administration’s Spectrum License User Fee 
proposal contained in the President’s Budget of the 
United States Government for Fiscal Year 2004 
(Budget, page 299; Appendix, page 1046), and an 
evaluation of whether the enactment of this proposal 
could address, either in part or in whole, any pos-
sible competitive disadvantages described in para-
graph (2). 
(c) FCC ASSISTANCE.—The Federal Communica-
tions Commission shall provide information and assist-
ance, as necessary, to facilitate the completion of the ex-
amination required by subsection (a). 
TITLE III—UNIVERSAL SERVICE 
SEC. 301. SHORT TITLE. 
This title may be cited as the ‘‘Universal Service 
Antideficiency Temporary Suspension Act’’. 
SEC. 302. APPLICATION OF CERTAIN TITLE 31 PROVISIONS 
TO UNIVERSAL SERVICE FUND. 
(a) IN GENERAL.—During the period beginning on 
the date of enactment of this Act and ending on December 
31, 2005, section 1341 and subchapter II of chapter 15 
of title 31, United States Code, do not apply— 
(1) to any amount collected or received as Fed-
eral universal service contributions required by sec-
tion 254 of the Communications Act of 1934 (47 
U.S.C. 254), including any interest earned on such 
contributions; nor 
(2) to the expenditure or obligation of amounts 
attributable to such contributions for universal serv-
ice support programs established pursuant to that 
section.
(b) POST-2005 FULFILLMENT OF PROTECTED OBLI-
GATIONS.—Section 1341 and subchapter II of chapter 15 
of title 31, United States Code, do not apply after Decem-
ber 31, 2005, to an expenditure or obligation described 
in subsection (a)(2) made or authorized during the period 
described in subsection (a). 
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