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. 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)). 
‘‘(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 
the OMB has submitted to the Committees on 
Appropriations and Energy and Commerce of 
the House of Representatives, the Committees 
on Appropriations and Commerce, Science, and 
Transportation of the Senate, and the Comp-
troller General a detailed plan describing how 
the sums transferred from the Fund will be 
used to pay relocation costs in accordance with 
such subsection and the timeline for such relo-
cation. 
‘‘(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. 5. 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. 6. 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. 7. 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. 8. PRESERVATION OF AUTHORITY; NTIA REPORT RE-
QUIRED. 
(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 Act, nothing in this Act or the amendments 
made by this Act 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.
SEC. 9. EXEMPT AUCTIONS. 
Section 647 of the ORBIT Act (47 U.S.C. 765f) is 
amended—
(1) by striking ‘‘global satellite communications 
services.’’ and inserting ‘‘global satellite communica-
tions services or for the provision of fixed terrestrial 
services in the 12.2–12.7 GHz band.’’; and 
(2) by adding at the end the following: ‘‘No li-
cense for fixed terrestrial services in the 12.2–12.7 
GHz band may be used for the provision of mobile 
terrestrial telephony services.’’.
Calendar No. 314
108TH CONGRESS 
1ST SESSION 
H. R. 1320
[Report No. 108–168] 
A BILL 
To amend the National Telecommunications and 
Information Administration Organization Act to 
facilitate the reallocation of spectrum from gov-
ernmental to commercial users. 
OCTOBER 17, 2003
Reported with an amendment