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‘‘(v) Any obligation to shareholders or
members arising as a result of their status
as shareholders or members (including any
depository institution holding company or
any shareholder or creditor of such com-
pany).
‘‘(B) EFFECT ON STATE LAW.—
‘‘(i) IN GENERAL.—The provisions of
subparagraph (A) shall not supersede the
law of any State except to the extent such
law is inconsistent with the provisions of
such subparagraph, and then only to the ex-
tent of the inconsistency.
‘‘(ii) PROCEDURE FOR DETERMINATION
OF
INCONSISTENCY.—Upon the Corpora-
tion’s own motion or upon the request of
any person with a claim described in sub-
paragraph (A)(i) or any State which is sub-
mitted to the Corporation in accordance
with procedures which the Corporation shall
prescribe, the Corporation shall determine
whether any provision of the law of any
State is inconsistent with any provision of
subparagraph (A) and the extent of any
such inconsistency.
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‘‘(iii) JUDICIAL
REVIEW.—The final
determination of the Corporation under
clause (ii) shall be subject to judicial review
under chapter 7 of title 5, United States
Code.
‘‘(C) ACCOUNTING REPORT.—Any distribu-
tion by the Corporation in connection with any
claim described in subparagraph (A)(vi) shall be
accompanied by the accounting report required
under paragraph (15)(B).’’.
(b) TECHNICAL AND CONFORMING AMENDMENTS.—
(1) Section 11(c)(13) of the Federal Deposit In-
surance Act (12 U.S.C. 1821(c)(13)) is amended—
(A) in subparagraph (A), by striking ‘‘sub-
ject to subparagraph (B),’’;
(B) by inserting ‘‘and’’ after the semicolon
at the end of subparagraph (A);
(C) by striking subparagraph (B); and
(D) by redesignating subparagraph (C) as
subparagraph (B).
(2) Section 11(g)(4) of the Federal Deposit In-
surance Act (12 U.S.C. 1921(g)(4)) is amended by
striking ‘‘If the Corporation’’ and inserting ‘‘Subject
to subsection (d)(11), if the Corporation’’.
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(c) EFFECTIVE DATE.—The amendments made by this
section shall apply with respect to insured depository insti-
tutions for which a receiver is appointed after the date of
the enactment of this Act.
SEC. 3002. TRANSFER OF FEDERAL RESERVE SURPLUSES.
(a) IN GENERAL.—The 1st undesignated paragraph of
section 7 of the Federal Reserve Act (12 U.S.C. 289) is
amended to read as follows:
‘‘(a) DIVIDENDS AND SURPLUS FUNDS OF RESERVE
BANKS.—
‘‘(1) STOCKHOLDER DIVIDENDS.—
‘‘(A) IN GENERAL.—After all necessary ex-
penses of a Federal reserve bank have been paid
or provided for, the stockholders of the bank shall
be entitled to receive an annual dividend of 6
percent on paid-in capital stock.
‘‘(B) DIVIDEND CUMULATIVE.—The entitle-
ment to dividends under subparagraph shall be
cumulative.
‘‘(2) DEPOSIT OF NET EARNINGS IN SURPLUS
FUND.—That portion of net earnings of each Federal
reserve bank which remains after dividend claims
under subparagraph (A) have been fully met shall be
deposited in the surplus fund of the bank.
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‘‘(3) PAYMENT
TO
TREASURY.—During fiscal
years 1997 and 1998, any amount in the surplus
fund of any Federal reserve bank in excess of the
amount equal to 3 percent of the total paid-in capital
and surplus of the member banks of such bank shall
be transferred to the Board for transfer to the Sec-
retary of the Treasury for deposit in the general fund
of the Treasury.’’.
(b) ADDITIONAL TRANSFERS FOR FISCAL YEARS 1997
AND 1998.—
(1) IN GENERAL.—In addition to the amounts
required to be transferred from the surplus funds of
the Federal reserve banks pursuant to section 7(a)(3)
of the Federal Reserve Act, the Federal reserve banks
shall transfer from such surplus funds to the Board
of Governors of the Federal Reserve System for trans-
fer to the Secretary of the Treasury for deposit in the
general fund of the Treasury, a total amount of
$106,000,000 in fiscal year 1997 and a total amount
of $107,000,000 in fiscal year 1998.
(2) ALLOCATION BY FED.—Of the total amount
required to be paid by the Federal reserve banks
under paragraph (1) for fiscal year 1997 or 1998, the
Board of Governors of the Federal Reserve System
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shall determine the amount each such bank shall pay
in such fiscal year.
(3) REPLENISHMENT OF SURPLUS FUND PROHIB-
ITED.—No Federal reserve bank may replenish such
bank’s surplus fund by the amount of any transfer by
such bank under paragraph (1) during fiscal years
1997 and 1998.
(c) TECHNICAL AND CONFORMING AMENDMENTS.—
(1) The penultimate undesignated paragraph of
section 7 of the Federal Reserve Act (12 U.S.C. 290)
is amended by striking ‘‘The net earnings derived’’
and inserting ‘‘(b) USE OF EARNINGS TRANSFERRED
TO THE TREASURY.—The net earnings derived’’.
(2) The last undesignated paragraph of section 7
of the Federal Reserve Act (12 U.S.C. 531) is amend-
ed by striking ‘‘Federal reserve banks’’ and inserting
‘‘(c) EXEMPTION FROM TAXATION.—Federal reserve
banks’’.
SEC. 3003. USE OF RETURN DATA FOR INCOME VERIFICA-
TION UNDER CERTAIN HOUSING ASSISTANCE
PROGRAMS.
(a) AMENDMENTS TO HOUSING ACTS.—Section 904 of
the Stewart B. McKinney Homeless Assistance Amendments
Act of 1988 (42 U.S.C. 3544) is amended as follows:
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(1) DEFINITION.—In subsection (a), by adding
at the end the following:
‘‘(4) PROGRAM OF THE DEPARTMENT OF HOUS-
ING AND URBAN DEVELOPMENT.—The term ‘program
of the Department of Housing and Urban Develop-
ment’ includes Indian housing programs assisted
under title II of the United States Housing Act of
1937.’’.
(2) CONSENT FORMS.—In subsection (b)—
(A) in paragraph (1), by striking ‘‘and’’ at
the end;
(B) in paragraph (2), by striking the period
at the end and inserting ‘‘; and’’;
(C) by inserting after paragraph (2) the fol-
lowing new paragraph:
‘‘(3) sign a consent form approved by the Sec-
retary authorizing the Secretary to request the Com-
missioner of Social Security and the Secretary of the
Treasury to release information pursuant to section
6103(l)(7)(D)(ix) of the Internal Revenue Code of
1986 with respect to such applicant or participant for
the sole purpose of the Secretary verifying income in-
formation pertinent to the applicant’s or partici-
pant’s eligibility or level of benefits.’’; and
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(D) in the last sentence, by striking ‘‘This’’
and inserting the following: ‘‘Except as provided
in this subsection, this’’.
(2) 
APPLICANT, 
PARTICIPANT, 
AND
PUBLIC
HOUSING
AGENCY
PROTECTIONS.—In 
subsection
(c)(2)—
(A) in subparagraph (A)—
(i) in the matter preceding clause (i)—
(I) by inserting after ‘‘compensa-
tion law’’ the following: ‘‘or pursuant
to section 6103(l)(7)(D)(ix) of the In-
ternal Revenue Code of 1986 from the
Commissioner of Social Security or the
Secretary of the Treasury’’; and
(II) by inserting ‘‘(in the case of
information obtained pursuant to such
section 303(i))’’ before ‘‘representa-
tives’’; and
(ii) in clause (ii), by inserting ‘‘or
public housing agency’’ after ‘‘owner’’ each
place it appears; and
(B) in subparagraph (B), by inserting after
‘‘wages’’ each place it appears the following: ‘‘,
other earnings or income,’’.
(3) PENALTY.—In subsection (c)(3)—
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(A) in subparagraph (A), by inserting ‘‘or
section 6103(l)(7)(D)(ix) of the Internal Revenue
Code of 1986’’ after ‘‘Social Security Act’’; and
(B) in the first sentence of subparagraph
(B)—
(i) by striking clause (i) and inserting
the following: ‘‘(i) a negligent or knowing
disclosure of information referred to in this
section, section 303(i) of the Social Security
Act, or section 6103(l)(7)(D)(ix) of the In-
ternal Revenue Code of 1986 about such
person by an officer or employee of any
public housing agency or owner (or em-
ployee thereof), which disclosure is not au-
thorized by this section, such section 303(i),
such section 6103(l)(7)(D)(ix), or any regu-
lation implementing this section, such sec-
tion 
303(i), 
or 
such 
section
6103(l)(7)(D)(ix), or’’; and
(ii) in clause (ii), by inserting ‘‘such
section 6103(l)(7)(D)(ix),’’ after ‘‘303(i),’’.
(4) CONFORMING AMENDMENT.—The heading of
subsection (c) of section 904 of the Stewart B. McKin-
ney Homeless Assistance Amendments Act of 1988 is
amended by striking ‘‘STATE EMPLOYMENT’’.
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(5) OPERATING
SUBSIDY
ADJUSTMENTS.—Sec-
tion 9(a) of the United States Housing Act of 1937
(42 U.S.C. 1437g(c)) is amended by adding at the
end the following:
‘‘(4) Adjustments to a public housing agency’s operat-
ing subsidy made by the Secretary under this section shall
reflect actual changes in rental income collections resulting
from the application of section 904 of the Stewart B.
McKinney Homeless Assistance Amendments Act of 1988.’’.
(b) CONFORMING INTERNAL REVENUE CODE AMEND-
MENTS.—
(1) IN GENERAL.—Subparagraph (D) of section
6103(l)(7) of the Internal Revenue Code of 1986 (26
U.S.C. 6103(l)(7)(D); relating to the disclosure of re-
turn information to Federal, State, and local agencies
administering certain programs) is amended—
(A) in clause (vii), by striking ‘‘, and’’ at
the end and inserting a semicolon;
(B) in clause (viii), by striking the period
at the end and inserting ‘‘; and’’;
(C) by inserting after clause (viii) the fol-
lowing new clause:
‘‘(ix) any housing assistance program
administered by the Department of Housing
and Urban Development that involves ini-
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tial and periodic review of an applicant’s
or participant’s income, except that return
information may be disclosed under this
paragraph only to the Secretary of Housing
and Urban Development and only with re-
spect to applicants for and participants in
such programs who have signed consent
forms under section 904(b)(3) of the Stewart
B. McKinney Homeless Assistance Amend-
ments Act of 1988.’’; and
(D) by adding at the end the following:
‘‘Clause (ix) shall not apply after September 30,
1998.’’.
(2) AMENDMENT TO THE HEADING.—The head-
ing of paragraph (7) of section 6103(l) of the Internal
Revenue Code of 1986 is amended by inserting after
‘‘1977,’’ the following: ‘‘CERTAIN
HOUSING
ASSIST-
ANCE PROGRAMS,’’.
SEC. 3004. GNMA REMIC GUARANTEE FEES.
Section 306(g)(3) of the National Housing Act (12
U.S.C. 1721(g)(3)) is amended by adding at the end the
following new subparagraph:
‘‘(E)(i) Notwithstanding subparagraphs (A) through
(D), fees charged for the guarantee of, or commitment to
guarantee, multiclass securities backed by a trust or pool
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of securities or notes guaranteed by the Association under
this subsection, and other related fees shall be charged by
the Association in an amount the Association deems appro-
priate. The Association shall take such action as may be
necessary to reasonably assure that such portion of the bene-
fit, resulting from the Association’s multiclass securities
program, as the Association determines is appropriate ac-
crues to mortgagors who execute eligible mortgages after the
date of the enactment of this subparagraph.
‘‘(ii) In its annual report, the Association shall pro-
vide a summary of each activity of the Association pertain-
ing to the Association’s multiclass securities program. Each
summary shall contain a description of the activity and
shall include—
‘‘(I) information pertaining to the size of the
transactions closed, the number of mortgages involved,
the amount of fees charged, those persons or entities
receiving payments for services provided and the
amounts of such payments; and
‘‘(II) an estimate of the portion of the benefit of
the multiclass securities program accruing to mortga-
gors as well as a description of any action taken by
the Association to ensure such accrual.
‘‘(iii) The Association shall provide for the initial im-
plementation of the program for which fees are charged
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under the first sentence of clause (i) by notice published
in the Federal Register. The notice shall be effective upon
publication and shall provide an opportunity for public
comment. Not later than 12 months after publication of the
notice, the Association shall issue regulations for such pro-
gram based on the notice, comments received, and the expe-
rience of the Association in carrying out the program dur-
ing such period.
‘‘(iv) The Association shall consult with persons or en-
tities in such manner as the Association deems appropriate
to ensure the efficient commencement and operation of the
multiclass securities program.
‘‘(v) No State or local law, and no Federal law (except
Federal law enacted expressly in limitation of this clause
after the effective date of this subparagraph) shall preclude
or limit the exercise by the Association of its power to con-
tract with persons or entities, and its rights to enforce such
contracts, for the purpose of ensuring the efficient com-
mencement and continued operation of the multiclass secu-
rities program.
‘‘(vi) Prior to the commencement of the multiclass se-
curities program, the Association shall provide to the Com-
mittee on Banking, Housing, and Urban Affairs of the Sen-
ate and the Committee on Banking, Finance and Urban
Affairs of the House of Representatives a report describing
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the Association’s design of the multiclass securities pro-
gram, including program elements that ensure the mini-
mization of risks arising from the operation of the
multiclass securities program, such as—
‘‘(I) any industry proven safeguards, including
capital standards for sponsors and provisions for in-
demnification from private parties for events that
may result in the Association’s liability under its
guaranty or commitment to guaranty; and
‘‘(II) the sufficiency of the Association’s staff re-
sources to administer the multiclass securities pro-
gram.’’.
SEC. 3005. MUTUAL MORTGAGE INSURANCE FUND PRE-
MIUMS.
To improve the actuarial soundness of the Mutual
Mortgage Insurance Fund under the National Housing Act,
the Secretary of Housing and Urban Development shall in-
crease the rate at which the Secretary earns the single pre-
mium payment collected at the time of insurance of a mort-
gage that is an obligation of such Fund (with respect to
the rate in effect on the date of the enactment of this Act).
In establishing such increased rate, the Secretary shall con-
sider any current audit findings and reserve analyses and
information regarding the expected average duration of
mortgages that are obligations of such Fund and may con-
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sider any other information that the Secretary determines
to be appropriate.
TITLE IV—COMMUNICATIONS
AND TRANSPORTATION
Subtitle A—Spectrum Allocation
and Auction
SEC. 4001. SHORT TITLE.
This subtitle may be cited as the ‘‘Emerging Tele-
communications Technologies Act of 1993’’.
SEC. 4002. FINDINGS.
The Congress finds that—
(1) the Federal Government currently reserves
for its own use, or has priority of access to, approxi-
mately 40 percent of the electromagnetic spectrum
that is assigned for use pursuant to the Communica-
tions Act of 1934;
(2) many of such frequencies are underutilized
by Federal Government licensees;
(3) the public interest requires that many of such
frequencies be utilized more efficiently by Federal
Government and non-Federal licensees;
(4) additional frequencies are assigned for serv-
ices that could be obtained more efficiently from com-
mercial providers or other vendors;
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(5) scarcity of assignable frequencies for licens-
ing by the Commission can and will—
(A) impede the development and commer-
cialization of new telecommunications products
and services;
(B) limit the capacity and efficiency of tele-
communications systems in the United States;
(C) prevent some State and local police,
fire, and emergency services from obtaining ur-
gently needed radio channels; and
(D) adversely affect the productive capacity
and international competitiveness of the United
States economy;
(6) a reassignment of these frequencies can
produce significant economic returns;
(7) a reassignment of Federal Government fre-
quencies can be accomplished without adverse impact
on amateur radio licenses that currently share alloca-
tions with Federal Government stations;
(8) current spectrum assignment procedures—
comparative hearings and lotteries—can be expensive
and time consuming, can strain the limited resources
of the Federal Communications Commission, and can
result in an inefficient distribution of spectrum and
an unjustified windfall to speculators;
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(9) competitive bidding could reduce the cost in
time and money—and increase the efficiency—of the
spectrum assignment process for certain radio serv-
ices, discourage speculative applications, encourage
the efficient use of spectrum by licensees, and fairly
compensate United States taxpayers for use of a
scarce public natural resource;
(10) competitive bidding should be structured
to—
(A) facilitate introduction of new spectrum-
based technologies and services and entry of new
companies into the telecommunications market;
(B) recognize the legitimate needs of rural
telephone companies in providing spectrum-
based, common carrier services in rural markets
in which they provide telephone exchange service
by wire;
(C) give appropriate consideration to small
businesses and minority-owned businesses that
want to participate in the competitive bidding
process;
(D) recognize the need to make reasonably
priced mobile communications services available
to businesses in rural areas;
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(E) recognize the need to ensure that ade-
quate spectrum continues to be available for pub-
lic safety services; and
(F) otherwise further the public interest;
(11) competitive bidding should apply only to
the granting of new spectrum licenses and should
not—
(A) disrupt the operations of existing spec-
trum licensees;
(B) alter existing spectrum allocation proce-
dures;
(C) apply to certain services governed by
public interest regulations;
(D) diminish the existing authority of the
Federal Communications Commission to regulate
or reclaim spectrum licenses;
(E) prevent or discourage the allocation of
spectrum to meet the current or future needs of
public safety services; or
(F) grant any right to a spectrum licensee
different from the rights awarded to licensees
who obtain their license through assignment
methods other than competitive bidding;
(12) in appropriating revenues received from
competitive bidding, priority should be given to—
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(A) funding spectrum management, plan-
ning, monitoring, and enforcement and other ac-
tivities of the Federal Communications Commis-
sion, the National Telecommunications and In-
formation Administration, and other Federal
agencies aimed at increasing the efficiency and
effectiveness of spectrum use, facilitating the in-
troduction of new spectrum-based technologies
and services, and enhancing the international
competitiveness of the United States and the
ability of American companies to enter new
markets; and
(B) extending the reach of public radio and
television to underserved areas of the United
States and underserved groups of Americans and
enhancing the ability of public telecommuni-
cations to deliver needed original, high-quality
public service programming; and
(13) because commercial mobile services require
a Federal license and the Federal Government is at-
tempting to promote competition for such services,
and because providers of such services do not exercise
market power vis-a-vis telephone exchange service car-
riers and State regulation can be a barrier to the de-
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velopment of competition in this market, uniform na-
tional policy is necessary and in the public interest.
SEC. 4003. NATIONAL SPECTRUM PLANNING.
(a) PLANNING ACTIVITIES.—The Assistant Secretary
of Commerce for Communications and Information and the
Chairman of the Commission shall meet, at least bian-
nually, to conduct joint spectrum planning with respect to
the following issues:
(1) the future spectrum requirements for public
and private uses, including State and local govern-
ment public safety agencies;
(2) the spectrum allocation actions necessary to
accommodate those uses; and
(3) actions necessary to promote the efficient use
of the spectrum, including spectrum management
techniques to promote increased shared use of the
spectrum that does not cause harmful interference, as
a means of increasing commercial access.
(b) REPORT ON PLANNING ACTIVITIES.—Not later
than 24 months after the date of enactment of this Act, the
Assistant Secretary of Commerce for Communications and
Information and the Chairman of the Commission shall
submit a joint report to the Committee on Energy and Com-
merce of the House of Representatives and the Committee
on Commerce, Science, and Transportation of the Senate
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on the joint spectrum planning activities conducted under
subsection (a) and recommendations for action developed
pursuant to such activities. The report shall contain rec-
ommendations for the reform of the process of allocating
spectrum between Federal uses and non-Federal uses.
(c) PROCEDURES TO ENSURE OPPORTUNITY FOR MI-
NORITY-OWNED BUSINESSES AND SMALL BUSINESSES.—
The Commission shall develop procedures to ensure that mi-
nority-owned businesses and small businesses are given the
opportunity to provide spectrum-based services. In develop-
ing such procedures, the Commission shall consider the use
of tax certificates and bidding preferences.
(d) STUDY ON SPECTRUM NEEDS OF PUBLIC SAFETY
AGENCIES.—The Commission shall complete and submit to
Congress, not later than 18 months after the date of enact-
ment of this Act, a study of current and future spectrum
needs of State and local government public safety agencies
through the year 2010, and a specific plan to satisfy those
spectrum needs.
SEC. 4004. RECOMMENDATIONS FOR REALLOCATION OF
CERTAIN FREQUENCIES.
(a) IDENTIFICATION REQUIRED.—For purposes of
reallocation, the Secretary shall identify frequencies that—
(1) are allocated on a primary basis for Federal
Government use;
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(2) are not required for the present or identifi-
able future needs of the Federal Government;
(3) can feasibly be made available, as of the date
of such identification or at any time during the next
15 years, for use under the Act (other than for Fed-
eral Government stations under section 305 of the
Act) without resulting in costs to the Federal Govern-
ment, or loss of services or benefits to the public, that
are excessive in relation to the benefits to the public
that may be provided by non-Federal licensees; and
(4) are most likely to have the greatest potential
for productive uses and public benefits under the Act
if allocated for commercial uses.
(b) 
MINIMUM
AMOUNT
OF
SPECTRUM
REC-
OMMENDED.—
(1) OVERALL RECOMMENDATION.—In accordance
with the provisions of this section, the Secretary shall
recommend for reallocation, for use other than by
Federal Government stations under section 305 of the
Act (47 U.S.C. 305), at least 200 megahertz of fre-
quencies identified under subsection (a) that are lo-
cated below 5 gigahertz. At least one-half of such fre-
quencies shall be located below 3 gigahertz.
(2) MIXED USES PERMITTED TO BE COUNTED.—
Among the frequencies recommended under this sec-
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tion for reallocation, the Secretary may include fre-
quencies and frequency bands that are to be partially
retained for use by Federal Government stations but
that are also recommended to be reallocated under the
Act for use by non-Federal stations, except that—
(A) such mixed-use frequencies and fre-
quency bands may not count toward more than
one-half of the 200 megahertz minimum required
by paragraph (1);
(B) such mixed-use frequencies and fre-
quency bands may not be so counted unless the
assignments of the frequencies to Federal Govern-
ment stations under section 305 of the Act (47
U.S.C. 305) are limited by geographic area, by
time, or by other means so as to guarantee that
the potential use to be made by such Federal
Government stations is substantially less (as
measured by geographic area, time, or otherwise)
than the potential use to be made by non-Federal
stations; and
(C) the operational sharing permitted under
this paragraph shall be subject to coordination
procedures that the Commission and the Sec-
retary shall jointly establish and implement to
ensure against harmful interference.
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(c) CONSIDERATION OF CRITERIA FOR IDENTIFICA-
TION.—
(1) NEEDS OF THE FEDERAL GOVERNMENT.—In
determining whether a frequency meets the criteria
specified in subsection (a)(2), the Secretary shall—
(A) consider whether the frequency is used
to provide a communications service that is or
could be made available from a commercial car-
rier or other vendor;
(B) seek to promote—
(i) the maximum practicable reliance
on commercially available substitutes;
(ii) the sharing of frequencies (as per-
mitted under subsection (b)(2));
(iii) the development and use of new
communications technologies; and
(iv) the use of nonradiating commu-
nications systems where practicable; and
(C) seek to avoid—
(i) serious degradation of Federal Gov-
ernment services and operations;
(ii) excessive costs to the Federal Gov-
ernment and users of Federal Government
services; and
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(iii) excessive disruption of existing use
of Federal Government frequencies by ama-
teur radio licensees.
(2) FEASIBILITY
OF
USE.—In determining
whether a frequency meets the criteria specified in
subsection (a)(3), the Secretary shall—
(A) assume that the frequency will be as-
signed by the Commission under section 303 of
the Act (47 U.S.C. 303) within 15 years;
(B) assume reasonable rates of scientific
progress and growth of demand for telecommuni-
cations services;
(C) seek to include frequencies which can be
used to stimulate the development of new tech-
nologies; and
(D) consider the immediate and recurring
costs to reestablish services displaced by the
reallocation of spectrum.
(3) COMMERCIAL USE.—In determining whether
a frequency meets the criteria specified in subsection
(a)(4), the Secretary shall consider—
(A) the extent to which equipment is avail-
able that is capable of utilizing such frequency;
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(B) the proximity of frequencies that are al-
ready assigned for commercial or other non-Fed-
eral use;
(C) the extent to which, in general, commer-
cial users could share the frequency with ama-
teur radio licensees; and
(D) the activities of foreign governments in
making frequencies available for experimentation
or commercial assignments in order to support
their domestic manufacturers of equipment.
(4) OTHER USES.—
(A) APPLICABILITY OF CRITERIA.—The cri-
teria specified by subsection (a) shall be deemed
not to be met for any purpose under this subtitle
with regard to any frequency assignment to, or
any frequency assignment used by, a Federal
power agency for the purpose of withdrawing
that assignment.
(B) MIXED
USE
ELIGIBILITY.—The fre-
quencies assigned to any Federal power agency
may only be eligible for mixed use under sub-
section (b)(2) in geographically separate areas,
but in those cases where a frequency is to be
shared by an affected Federal power agency and
a non-Federal user, such use by the non-Federal
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user shall not cause harmful interference to the
affected Federal power agency or adversely affect
the reliability of its power system.
(C) DEFINITION.—As used in this para-
graph, the term ‘‘Federal power agency’’ means
the Tennessee Valley Authority, the Bonneville
Power Administration, the Western Area Power
Administration, or the Southwestern Power Ad-
ministration.
(d) 
PROCEDURE
FOR
IDENTIFICATION
OF
REALLOCABLE BANDS OF FREQUENCIES.—
(1) REPORT IDENTIFYING 30 MEGAHERTZ FOR
IMMEDIATE REALLOCATION.—Within 6 months after
the date of enactment of this Act, the Secretary shall
prepare and submit to the President and the Congress
a report that recommends for immediate reallocation
no less than 30 megahertz of frequencies identified
under subsection (a). None of the frequencies covered
by such report may be allocated for mixed use as de-
scribed in subsection (b)(2). Not less than one-half of
such frequencies shall be located below 3 gigahertz.
(2) 
PRELIMINARY
REPORT
ON
OTHER
REALLOCABLE FREQUENCIES.—Within 6 months after
the date of enactment of this Act, the Secretary shall
prepare, make publicly available, and submit to the
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President and the Congress a preliminary report that
recommends for reallocation at least 170 megahertz of
frequencies identified under subsection (a), other than
those recommended for immediate reallocation under
paragraph (1).
(3) PUBLIC COMMENT; CHANGES TO REPORT.—
The Secretary shall receive public comment on the
preliminary report required by paragraph (2) and
shall, based upon the comments, make such changes to
the report as are warranted to meet the objectives of
this section.
(4) DIRECT DISCUSSIONS.—The Secretary shall
encourage and provide opportunity for direct discus-
sions among commercial representatives and Federal
Government users of the spectrum to aid the Sec-
retary in determining which frequencies to rec-
ommend for reallocation. The Secretary shall provide
notice to the public of any such discussions, including
the name or names of any businesses or other persons
represented in such discussions, and shall provide the
public with an opportunity to comment on the results
of any such negotiations prior to the submission of
the final report required by paragraph (5).
(5) FINAL
REPORT
ON
OTHER
REALLOCABLE
FREQUENCIES.—Within 18 months after the date of
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enactment of this Act, the Secretary shall prepare and
submit to the President and the Congress a final re-
port that recommends the reallocation of at least 170
megahertz of frequencies as described in paragraph
(2). Not less than one-half of such frequencies shall be
located below 3 gigahertz.
(6) LIMITATION ON REALLOCATION.—None of the
frequencies recommended for reallocation in the re-
ports required by this subsection shall have been rec-
ommended, prior to the date of enactment of this Act,
for reallocation to non-Federal use by international
agreement.
(e) TIMETABLE
FOR
REALLOCATION
AND
LIMITA-
TION.—The Secretary shall, as part of the reports required
by paragraphs (1) and (2) of subsection (d), include a time-
table that recommends dates by which the President shall
withdraw or limit assignments of the frequencies specified
in the reports. In setting the recommended effectived dates,
the Secretary shall—
(1) consider the need to reallocate frequencies as
early as possible, taking into account the require-
ments of section 406;
(2) consider the useful remaining life of equip-
ment that has been purchased or contracted for pur-
chase to operate on identified frequencies;
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(3) consider the need to coordinate frequency use
with other nations; and
(4) take into account the relationship between the
costs to the Federal Government of changing to dif-
ferent frequencies and the benefits that may be ob-
tained from commercial and other non-Federal uses of
the reassigned frequencies.
SEC. 4005. WITHDRAWAL OR LIMITATION OF ASSIGNMENT
TO FEDERAL GOVERNMENT STATIONS.
(a) IN GENERAL.—The President shall—
(1) within 12 months after receipt of the report
required by section 404(d)(1), withdraw the assign-
ment to a Federal Government station of any fre-
quency in the frequencies recommended by that report
for immediate reallocation;
(2) by the effective date recommended by the Sec-
retary under section 404(e) (except as provided in
subsection (b)(4) of this section), withdraw or limit
the assignment to a Federal Government station of
any frequency which the report required by section
404(d)(3) recommends be reallocated or made avail-
able for mixed use on such recommended effective
date;
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(3) assign or reassign other frequencies to Fed-
eral Government stations as necessary to adjust to
such withdrawal or limitation of assignments; and
(4) transmit a notice and description to the
Commission and each House of Congress of the ac-
tions taken under this subsection.
(b) EXCEPTIONS.—
(1) AUTHORITY TO SUBSTITUTE.—If the Presi-
dent determines that a circumstance described in
paragraph (2) exists, the President—
(A) may substitute an alternative frequency
for the frequency that is subject to such deter-
mination and withdraw (or limit) the assign-
ment of that alternative frequency in the manner
required by subsection (a); and
(B) shall submit a statement of the reasons
for taking the action described in subparagraph
(A) to the Committee on Energy and Commerce
of the House of Representatives and the Commit-
tee on Commerce, Science, and Transportation of
the Senate.
(2) GROUNDS FOR SUBSTITUTION.—Each of the
following subparagraphs describes a circumstance re-
ferred to in paragraph (1):
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(A) The reassignment would seriously jeop-
ardize the national defense interests of the Unit-
ed States.
(B) The frequency proposed for reassign-
ment is uniquely suited to meeting important
governmental needs.
(C) The reassignment would seriously jeop-
ardize public health or safety.
(D) The reassignment will result in costs to
the Federal Government that are excessive in re-
lation to the benefits that may be obtained from
commercial or other non-Federal uses of the reas-
signed frequency.
(E) The reassignment will disrupt the exist-
ing use of a Federal Government band of fre-
quencies by amateur radio licensees.
(3) 
CRITERIA
FOR
SUBSTITUTED
FRE-
QUENCIES.—For purposes of paragraph (1), a fre-
quency may not be substituted for a frequency identi-
fied and recommended under section 404 for
reallocation, unless the substituted frequency also
meets each of the criteria specified by section 404(a).
(4) DELAYS IN IMPLEMENTATION.—If the Presi-
dent determines that any action cannot be completed
by the effective date recommended by the Secretary
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pursuant to section 404(e), or that such an action by
such date would result in a frequency being unused
as a consequence of the Commission’s plan under sec-
tion 404(b), the President may—
(A) withdraw or limit the assignment to
Federal Government stations on a later date that
is consistent with such plan, except that the
President shall notify each Committee specified
in paragraph (1)(B) and the Commission of the
reason that withdrawal or limitation at a later
date is required; or
(B) substitute alternative frequencies pursu-
ant to this subsection.
(c) COSTS OF WITHDRAWING FREQUENCIES ASSIGNED
TO THE FEDERAL GOVERNMENT.—
(1) REIMBURSEMENT AUTHORIZED.—Any Fed-
eral agency, or non-Federal entity operating on behalf
of a Federal agency, whose operation is displaced
from a frequency pursuant to this section may be re-
imbursed, from revenues received pursuant to section
408, not more than the incremental costs such agency
or entity incurs (in such amounts as are provided in
advance in an appropriations Act) that are directly
attributable to the displacement from the frequency.
The estimates of these costs shall be prepared by the
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affected agency, in consultation with the Department
of Commerce.
(2) AUTHORIZATION
OF
APPROPRIATIONS.—
There are authorized to be appropriated to the af-
fected Federal agencies such sums as may be nec-
essary to carry out the purposes of this subsection.
(d) EXISTING AUTHORITY RETAINED.—
(1) ADDITIONAL
REALLOCATION.—Nothing in
this subtitle prevents or limits additional reallocation
of spectrum from the Federal Government to the com-
mercial or other sectors.
(2) IMPLEMENTATION
OF
NEW
TECHNOLOGIES
AND SERVICES.—Notwithstanding any other provision
of this subtitle—
(A) the Secretary may at any time allow
frequencies allocated on a primary basis for Fed-
eral Government use to be used by non-Federal
licensees on a mixed-use basis for the purpose of
facilitating the prompt implementation of new
technologies or services; and
(B) the Commission shall expedite and give
priority to the allocation of any frequencies iden-
tified pursuant to subparagraph (A), and any
associated licensing.
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SEC. 
4006. 
ALLOCATION 
AND 
ASSIGNMENT 
OF 
FRE-
QUENCIES BY THE COMMISSION.
(a) ALLOCATION AND ASSIGNMENT OF IMMEDIATELY
AVAILABLE FREQUENCIES.—With respect to the frequencies
made available for immediate reallocation pursuant to sec-
tion 405(a)(1), the Commission, not later than 18 months
after the date of enactment of this Act, shall issue rules to
allocate such frequencies and shall propose rules to assign
such frequencies.
(b) ALLOCATION
AND ASSIGNMENT
OF REMAINING
AVAILABLE FREQUENCIES.—With respect to the frequencies
made available for reallocation pursuant to section
405(a)(2), the Commission shall, not later than 1 year after
receipt of the final report identified in section 404(d)(4),
prepare, in consultation with the Assistant Secretary of
Commerce for Communications and Information, submit to
the President and the Congress, and implement, a plan for
the allocation and assignment under the Act of such fre-
quencies. Such plan shall—
(1) not propose the immediate allocation and as-
signment of all such frequencies but, taking into ac-
count the timetable recommended by the Secretary
pursuant to section 404(e), shall propose—
(A) gradually to allocate and assign the fre-
quencies remaining, after making the reservation
required by subparagraph (B), over the course of
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10 years beginning on the date of submission of
such plan; and
(B) to reserve a significant portion of such
frequencies for distribution beginning after the
end of such 10-year period;
(2) contain appropriate provisions to ensure the
availability of frequencies for (A) new technologies
and services in accordance with the policies of section
7 of the Act (47 U.S.C. 157) and (B) the safety of life
and property in accordance with the policies of sec-
tion 1 of the Act (47 U.S.C. 151);
(3) address (A) the feasibility of reallocating por-
tions of the spectrum from current commercial and
other non-Federal uses to provide for more efficient
use of the spectrum, and (B) innovation and market-
place developments that may affect the relative effi-
ciencies of different spectrum allocations;
(4) not prevent the Commission from allocating
frequencies, and assigning licenses to use frequencies,
not included in the plan; and
(5) not preclude the Commission from making
changes to the plan in future proceedings.
(c) AMENDMENT TO THE ACT.—Section 303 of the Act
(47 U.S.C. 303) is amended by adding at the end the follow-
ing new subsection:
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‘‘(v) Have authority to assign licenses to use the fre-
quencies reallocated from United States Government use to
non-United States Government use pursuant to the Emerg-
ing Telecommunications Technologies Act of 1993; except
that any such assignment shall be made expressly subject
to the right of the President to reclaim such frequencies
under section 7 of such Act.’’.
SEC. 4007. AUTHORITY TO RECLAIM REASSIGNED FRE-
QUENCIES.
(a) AUTHORITY OF PRESIDENT.—Subsequent to the
withdrawal of assignment to Federal Government stations
pursuant to section 405, the President may reclaim reas-
signed frequencies for reassignment to Federal Government
stations in accordance with this section.
(b) PROCEDURE FOR RECLAIMING FREQUENCIES.—
(1) UNALLOCATED
FREQUENCIES.—If the fre-
quencies to be reclaimed have not been allocated or as-
signed by the Commission pursuant to the Act, the
President shall follow the procedures for substitution
of frequencies established by section 405(b) of this sub-
title.
(2) ALLOCATED
FREQUENCIES.—If the fre-
quencies to be reclaimed have been allocated or as-
signed by the Commission, the President shall follow
the procedures for substitution of frequencies estab-
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lished by section 405(b) of this subtitle, except that the
notification required by section 405(b)(1)(B) shall in-
clude—
(A) a timetable to accommodate an orderly
transition for displaced licensees to obtain new
frequencies and equipment necessary for its utili-
zation; and
(B) an estimate of the cost of displacing
spectrum uses licensed by the Commission.
(c) COSTS OF RECLAIMING FREQUENCIES; APPROPRIA-
TIONS AUTHORIZED.—The Federal Government shall bear
all costs of reclaiming frequencies pursuant to this section,
including the cost of equipment which is rendered unusable,
the cost of relocating operations to a different frequency,
and any other costs that are directly attributable to the re-
claiming of the frequency pursuant to this section. There
are authorized to be appropriated such sums as may be nec-
essary to carry out the purposes of this section.
(d) 
EFFECTIVE
DATE
OF
RECLAIMED
FRE-
QUENCIES.—The Commission shall not withdraw licenses
for any reclaimed frequencies until the end of the fiscal year
following the fiscal year in which the President’s notifica-
tion is received.
(e) EFFECT ON OTHER LAW.—Nothing in this section
shall be construed to limit or otherwise affect the authority
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of the President under section 706 of the Act (47 U.S.C.
606).
SEC. 4008. COMPETITIVE BIDDING.
(a) COMPETITIVE BIDDING.—
(1) IN GENERAL.—
(A) FIVE-YEAR AUTHORIZATION.—The Com-
mission shall, during fiscal years 1994 through
1998, use the competitive bidding process author-
ized under the amendment made by subsection
(b) to grant all radio spectrum licenses for which
two or more mutually exclusive applications
have been filed, including the 200 megahertz of
spectrum made available to the Commission
under this subtitle, and including the licenses is-
sued for a personal communications service es-
tablished pursuant to the proceeding entitled
‘‘Amendment to the Commission’s Rules to Es-
tablish New Personal Communications Services’’,
or any successor proceeding, except for those li-
censes identified in subparagraphs (A) through
(E) of section 309(j)(4) of the Act and those li-
censes that the Commission determines should in
the public interest be issued by comparative
hearing under section 309(a) through (f) of the
Act. To the extent possible, and consistent with
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appropriate by the Commission, whether and to
what extent—
(i) competitive bidding significantly
improved the efficiency and effectiveness of
the process for granting radio spectrum
licenses;
(ii) competitive bidding facilitated the
introduction of new spectrum-based tech-
nologies and the entry of new companies
into the telecommunications market;
(iii) the needs of rural spectrum users
were adequately addressed in the competi-
tive bidding process;
(iv) small businesses and minority-
owned businesses were able to participate
successfully in the competitive bidding proc-
ess; and
(v) statutory changes are needed to im-
prove the competitive bidding process.
(2) RETENTION
OF
REVENUES.—Notwithstand-
ing paragraph (6) of section 309(j) of the Act, as
added by this subtitle, the salaries and expenses ac-
count of the Commission shall retain as an offsetting
collection such sums as may be necessary from the re-
ceipts received pursuant to such section for the costs
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of developing and implementing the program required
by subsection (a)(1)(A). Such offsetting collections
shall be available for obligation subject to the terms
and conditions of the receiving appropriations ac-
count, and shall be deposited in such accounts on a
quarterly basis. Any funds appropriated to the Com-
mission for fiscal years 1994 through 1998 for the
purpose of assigning licenses using random selection
under section 309(i) of the Act shall be used by the
Commission to implement section 309(j) of the Act.
(b) COMPETITIVE BIDDING AUTHORIZATION.—Section
309 of the Act (47 U.S.C. 309) is amended by adding at
the end the following new subsection:
‘‘(j)(1) Subject to the exemptions and conditions set
forth in the other provisions of this subsection, if there are
two or more mutually exclusive applications for any con-
struction permit or initial license which will involve any
use of the electromagnetic spectrum, the Commission shall
have authority to use competitive bidding in the granting
of such construction permit or initial license.
‘‘(2)(A) The Commission shall, within 6 months after
the date of enactment of the Emerging Telecommunications
Technologies Act of 1993 and following public notice and
comment proceedings, issue rules establishing competitive
bidding procedures under this subsection. Such rules shall
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include safeguards to protect the public interest in the use
of the spectrum and shall ensure the opportunity for suc-
cessful participation by small businesses and minority-
owned businesses.
‘‘(B)(i) In the rules issued pursuant to subparagraph
(A), the Commission shall require potential bidders to file
a first-stage application indicating an intent to participate
in the competitive bidding process and containing such
other information as the Commission finds necessary. After
conducting the bidding, the Commission shall require the
wining bidder to file a second-stage application. After deter-
mining that such application is acceptable for filing and
that the winning bidder is qualified as described in clause
(ii), the Commission shall grant the permit or license to
the winning bidder.
‘‘(ii) No permit or license shall be granted to a win-
ning bidder pursuant to clause (i) unless the Commission
determines that such winning bidder is qualified pursuant
to section 308(b) and subsection (a) of this section, on the
basis of the information contained in the first-stage and sec-
ond-stage applications submitted pursuant to clause (i).
‘‘(iii) Each participant in the competitive bidding
process shall be subject to the schedule of charges contained
in section 8.
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‘‘(C) In the rules issued pursuant to subparagraph (A),
the Commission, in addition to other actions it finds nec-
essary to implement competitive bidding fairly and
effectively, shall—
‘‘(i) establish the method of bidding (including
but not limited to sealed bids) and the basis for pay-
ment (such as installment or lump sum payments,
royalties on future income, a combination thereof, or
other reasonable forms of payment specified by the
Commission); and
‘‘(ii) establish other appropriate conditions on
such permits and licenses that serve the public
interest.
‘‘(3)(A)(i) If the Commission decides to use competitive
bidding to grant two or more national, regional, or local
licenses per market in a terrestrial service that will compete
with telephone exchange service provided by a qualified
common carrier, the Commission shall designate one such
license per market as a rural program license.
‘‘(ii) The Commission shall define the geographic
boundaries of the rural program license to correspond to
the geographic area of the telephone exchange service by
which the qualified common carrier became eligible for the
rural program license under subparagraph (E)(ii).
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‘‘(B)(i) Except as provided in subparagraph (D), the
Commission shall either grant a rural program license to
the qualified common carrier providing telephone exchange
service in the area covered by such license, or grant a license
to a consortium of such qualified carriers.
‘‘(ii) No qualified common carrier that receives a rural
program license shall be eligible to—
‘‘(I) receive any other license to provide the same
service in such area; or
‘‘(II) own any equity interest in, become a credi-
tor of, or otherwise become affiliated with any entity
that holds a license to provide the same service in
such area.
‘‘(iii) Any qualified common carrier that receives a
rural program license shall (I) provide to all other licensees
providing the same service in such area the same quality
of access to its wire network that it provides itself, and (II)
shall interconnect its wireless service with the wireless serv-
ice provided by another licensee providing the same service
on the same frequency in a different geographic area. Such
other licensee shall provide an equivalent interconnection
with the wireless service of such rural program licensee.
‘‘(iv) The Commission may establish other rules or
conditions for the award of a rural program license, consist-
ent with the intent of this paragraph.
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‘‘(C)(i) Upon the grant of a rural program license to
a qualified common carrier, such carrier shall pay a fee
(in lump sum or installment payments, in royalties on fu-
ture income, in a combination thereof, or on any other rea-
sonable basis specified by the Commission) equal to the
value of such license. The value of such license shall be the
average of the amounts paid by persons granted licenses
through competitive bidding to provide the same service in
such area, except that the Commission shall determine the
value of such license by any reasonable means when the geo-
graphic area served by the rural program license is not con-
gruent with the geographic area served by the other license
or licenses. The Commission shall ensure that the total
amount paid by qualified common carriers for all the li-
censes issued to them under the rural program shall equal
the total value, as determined under clause (ii), of such li-
censes.
‘‘(ii) The Commission shall determine the total value
of the licenses issued under the rural program to qualified
common carriers by first adding the amounts paid for the
licenses not subject to the rural program, and dividing that
sum by the number of licenses per market that are not sub-
ject to the rural program. The Commission shall then sub-
tract from the amount found in the previous calculation
the total amount paid for the licenses issued for the non-
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rural areas under bidding subject to the rural program and
the total amount paid for licenses issued pursuant to sub-
paragraph (D). The amount remaining shall be the total
value of all the licenses issued under the rural program to
qualified common carriers.
‘‘(D) If no qualified common carrier applies for a
rural program license in a particular market and the Com-
mission awards the non-rural program licenses through
competitive bidding, the rural program shall not apply for
that particular market and the Commission shall use com-
petitive bidding to award the licenses for the former rural
program areas, either separately or as part of larger license
areas.
‘‘(E) For purposes of this paragraph—
‘‘(i) the term ‘rural area’ means any geographic
area that does not include either—
‘‘(I) any incorporated place of 10,000 in-
habitants or more, or any part thereof; or
‘‘(II) any territory, incorporated or unin-
corporated, included in an urbanized area (as
defined by the Bureau of the Census as of the
date of enactment of the Emerging Telecommuni-
cations Technologies Act of 1993); and
‘‘(ii) the term ‘qualified common carrier’ means
a common carrier that—
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broadcast services, public safety services, and radio
astronomy services;
‘‘(D) because they do not involve mutually exclu-
sive applications, extend to private radio end-user li-
censes, including Specialized Mobile Radio Service
(SMRS), 
maritime, 
and 
aeronautical 
end-user
licenses;
‘‘(E) because of the need to avoid excessive serv-
ice disruption, extend to any license grant to a non-
Federal licensee being moved from its current fre-
quency assignment to a different one by the Commis-
sion in order to make spectrum available for new
technologies; and
‘‘(F) extend to any other service, class of services,
or assignments that the Commission determines, after
conducting public notice and comment proceedings,
should be exempt from competitive bidding because of
public interest factors warranting an exemption to
the extent the Commission determines the use of com-
petitive bidding would jeopardize appropriate treat-
ment of those factors.
‘‘(5) No provision of this subsection or of the Emerging
Telecommunications Technologies Act of 1993 shall be con-
strued, in any way, to—
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‘‘(A) alter spectrum allocation criteria and pro-
cedures established by the other provisions of this Act;
‘‘(B) allow the Commission to consider potential
revenues from competitive bidding when making deci-
sions concerning spectrum allocation;
‘‘(C) diminish the authority of the Commission
under the other provisions of this Act to regulate or
reclaim spectrum licenses;
‘‘(D) grant any right to a spectrum licensee dif-
ferent from the rights awarded to licensees who ob-
tained their license through assignment methods other
than competitive bidding; or
‘‘(E) prevent the Commission from awarding li-
censes to those persons who make significant contribu-
tions to the development of a new telecommunications
service or technology.
‘‘(6) Moneys received from competitive bidding pursu-
ant to this subsection shall be deposited in the general fund
of the Treasury.’’
(c) STATE AND LOCAL TAX TREATMENT OF LICENSES
AND PERMITS.—Title VII of the Act (47 U.S.C. 601 et seq.)
is amended by adding at the end the following new section:
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‘‘SEC. 714. STATE AND LOCAL TAX TREATMENT OF LI-
CENSES AND PERMITS.
‘‘A license or permit issued by the Commission under
this Act shall not be treated as the property of the licensee
for property tax purposes, or other similar tax purposes,
by any State or local government entity.’’.
SEC. 4009. REGULATORY PARITY.
(a) AMENDMENT.—Section 332 of the Act (47 U.S.C.
332) is amended—
(1) by striking ‘‘PRIVATE LAND’’ from the head-
ing of the section; and
(2) by amending subsection (c) to read as
follows:
‘‘(c)(1)(A) A person engaged in the provision of com-
mercial mobile services shall, insofar as such person is so
engaged, be treated as a common carrier for purposes of
this Act, except that the Commission may waive the require-
ments of sections 203, 204, 205, and 214, and the 30-day
notice provision of section 309(a), for commercial mobile
services and such other provisions of title II as the Commis-
sion may, consistent with the public interest, specify by
rule. In prescribing any such rule, the Commission may
not waive for commercial mobile services the requirements
of section 201, 202, 206, 208, 209, 215(c), 216, 217, 220
(d) or (e), 223, 225, 226 (a), (b), (c), (d), (e), (f), (g), or
(i), 227, or 228, or any other provision that is necessary
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in order to ensure that the charges, practices, classifications,
or regulations for or in connection with commercial mobile
services are just and reasonable and are not unjustly or un-
reasonably discriminatory or that is otherwise in the public
interest.
‘‘(B) Upon reasonable request of any person providing
commercial mobile service, the Commission shall order a
common carrier to establish physical connections with such
service pursuant to section 201. Except to the extent that
the Commission is required to respond to such a request,
this subparagraph shall not be construed as a limitation
or expansion of the Commission’s authority to order inter-
connection under this Act.
‘‘(2) A person engaged in private land mobile service
shall not, insofar as such person is so engaged, be treated
as a common carrier for any purpose under this Act. A
common carrier shall not provide any dispatch service on
any frequency allocated for common carrier service, except
to the extent that such dispatch service is provided on sta-
tions licensed by the Commission in the Specialized Mobile
Radio Service prior to May 24, 1993, or is provided on
stations licensed in the domestic public land mobile radio
service before January 1, 1982. The Commission may by
regulation terminate, in whole or in part, the prohibition
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contained in the preceding sentence if the commission deter-
mines that such termination will service the public interest.
‘‘(3)(A) Notwithstanding sections 2(b) and 221(b), no
State or local government shall have any authority to regu-
late the entry of or the rates charged by any commercial
mobile service or any private land mobile service, except
that this paragraph shall not prohibit a State from regulat-
ing the other terms and conditions of commercial mobile
services. Nothing in this subparagraph shall exempt provid-
ers of commercial mobile services (where such services are
a substitute for land line telephone exchange service for a
substantial portion of the communications within such
State) from requirements imposed by a State commission
on all providers of telecommunications services necessary to
ensure the continued availability of telephone exchange serv-
ice at affordable rates.
‘‘(B) Notwithstanding subparagraph (A), a State may
petition the Commission for authority to regulate the rates
for any commercial mobile service if such State dem-
onstrates that (i) such service is a substitute for land line
telephone exchange service for a substantial portion of the
communications within such State, or (ii) market condi-
tions with respect to such services fail to protect subscribers
adequately from unjust and unreasonable rates or rates that
are unjustly or unreasonably discriminatory. The Commis-
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sion shall provide reasonable opportunity for public com-
ment in response to such petition, and shall, within 9
months after the date of its submission, grant or deny such
petition. If the Commission grants such petition, the Com-
mission shall authorize the State to exercise under State
law such authority over rates, for such periods of time, as
the Commission deems necessary to ensure that such rates
are just and reasonable and not unjustly or unreasonably
discriminatory.
‘‘(C) If a State has in effect on June 1, 1993, any regu-
lation concerning the rates for any commercial mobile serv-
ice, such State may, no later than 1 year after the date
of enactment of the Emerging Telecommunications Tech-
nologies Act of 1993, petition the Commission requesting
that the State be authorized to continue exercising authority
over such rates. The State’s existing regulation shall, not-
withstanding subparagraph (A), remain in effect until the
Commission issues a final order granting or denying such
petition. The Commission shall review such petition in ac-
cordance with the procedures and schedule established in
subparagraph (B), and shall grant such petition if the State
satisfies the showing required under subparagraph (B)(i)
or (B)(ii). If the Commission grants such petition, the Com-
mission shall authorize the State to exercise under the State
law such authority over rates, for such period of time, as