II
107TH CONGRESS
2D SESSION
H. R. 4560
IN THE SENATE OF THE UNITED STATES
MAY 8, 2002
Received
MAY 9, 2002
Read the first time
AN ACT
To eliminate the deadlines for spectrum auctions of spectrum
previously allocated to television broadcasting.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
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SECTION 1. SHORT TITLE.
This Act may be cited as the ‘‘Auction Reform Act
of 2002’’.
SEC. 2. FINDINGS.
The Congress finds the following:
(1) Circumstances in the telecommunications
market have changed dramatically since the auc-
tioning of spectrum in the 700 megahertz band was
originally mandated by Congress in 1997, raising se-
rious questions as to whether the original deadlines,
or the subsequent revision of the deadlines, are con-
sistent with sound telecommunications policy and
spectrum management principles.
(2) No comprehensive plan yet exists for allo-
cating additional spectrum for third-generation wire-
less and other advanced communications services.
The Federal Communications Commission should
have the flexibility to auction frequencies in the 700
megahertz band for such purposes.
(3) The study being conducted by the National
Telecommunications and Information Administration
in consultation with the Department of Defense to
determine whether the Department of Defense can
share or relinquish additional spectrum for third-
generation wireless and other advanced communica-
tions services will not be completed until after the
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June 19th auction date for the upper 700 megahertz
band, and long after the applications must be filed
to participate in the auction, thereby creating fur-
ther uncertainty as to whether the frequencies in the
700 megahertz band will be put to their highest and
best use for the benefit of consumers.
(4) The Federal Communications Commission
is also in the process of determining how to resolve
the interference problems that exist in the 800
megahertz band, especially for public safety. One op-
tion being considered for the 800 megahertz band
would involve the 700 megahertz band. The Com-
mission should not hold the 700 megahertz auction
before the 800 megahertz interference issues are re-
solved or a tenable plan has been conceived.
(5) The 700 megahertz band is currently occu-
pied by television broadcasters, and will be so until
the transfer to digital television is completed. This
situation creates a tremendous amount of uncer-
tainty concerning when the spectrum will be avail-
able and reduces the value placed on the spectrum
by potential bidders. The encumbrance of the 700
megahertz band reduces both the amount of money
that the auction would be likely to produce and the
probability that the spectrum would be purchased by
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the entities that valued the spectrum the most and
would put the spectrum to its most productive use.
(6) The Commission’s rules governing voluntary
mechanisms for vacating the 700 megahertz band by
broadcast stations—
(A) produced no certainty that the band
would be available for advanced mobile commu-
nications services, public safety operations, or
other wireless services any earlier than the ex-
isting statutory framework provides; and
(B) should advance the transition of digital
television and must not result in the unjust en-
richment of any incumbent licensee.
SEC. 3. REPEAL OF DEADLINES FOR SPECTRUM AUCTIONS.
(a) COMMUNICATIONS
ACT
OF
1934.—Section
309(j)(14)(C)(ii) of the Communications Act of 1934 (47
U.S.C. 309(j)(14)(C)(ii)) is amended by striking the sec-
ond sentence.
(b) BALANCED BUDGET ACT
OF 1997.—Section
3007 of the Balanced Budget Act of 1997 (111 Stat. 269)
is amended by adding at the end the following new sen-
tence: ‘‘This section shall not apply to the band of fre-
quencies between 698 and 806 megahertz, inclusive.’’.
(c) CONSOLIDATED APPROPRIATIONS ACT.—Para-
graphs (2) and (3) of section 213(a) of H.R. 3425 of the
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106th Congress, as enacted into law by section 1000(a)(5)
of an Act making consolidated appropriations for the fiscal
year ending September 30, 2000, and for other purposes
(Public Law 106–113; 113 Stat. 1501A–295), are re-
pealed.
SEC. 4. TERMINATION OF SCHEDULED AUCTIONS.
(a) TERMINATION.—The Federal Communications
Commission shall not commence or conduct auctions 31
and 44 on June 19, 2002, as specified in the public notices
of March 19, 2002, and March 20, 2002 (DA 02–659 and
DA 02–563).
(b) REPORT.—Within one year after the date of en-
actment of this Act, the Commission shall submit a report
to the Congress—
(1) specifying when the Commission intends to
reschedule auctions 31 and 44; and
(2) describing the progress made by the Com-
mission in the digital television transition and in the
assignment and allocation of additional spectrum for
advanced mobile communications services that war-
rants the scheduling of such auctions.
SEC. 5. COMPLIANCE WITH AUCTION AUTHORITY.
The Federal Communications Commission shall con-
duct rescheduled auctions 31 and 44 prior to the expira-
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tion of the auction authority under section 309(j)(11) of
the Communications Act of 1934 (47 U.S.C. 309(j)(11)).
SEC. 6. PRESERVATION OF BROADCASTER OBLIGATIONS.
Nothing in this Act shall be construed to relieve tele-
vision broadcast station licensees of the obligation to com-
plete the digital television service conversion as required
by section 309(j)(14) of the Communications Act of 1934
(47 U.S.C. 309(j)(14)).
Passed the House of Representatives May 7, 2002.
Attest:
JEFF TRANDAHL,
Clerk.