II
105TH CONGRESS
1ST SESSION
H. R. 2015
IN THE SENATE OF THE UNITED STATES
JUNE 25, 1997
Received
AN ACT
To provide for reconciliation pursuant to subsections (b)(1)
and (c) of section 105 of the concurrent resolution on
the budget for fiscal year 1998.
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 ‘‘Balanced Budget Act
of 1997’’.
SEC. 2. TABLE OF CONTENTS.
Title I—Committee on Agriculture.
Title II—Committee on Banking and Financial Services.
Title III—Committee on Commerce—Nonmedicare.
Title IV—Committee on Commerce—Medicare.
Title V—Committee on Education and the Workforce.
Tittle VI—Committee on Government Reform and Oversight.
Title VII—Committee on Transportation and Infrastructure.
Title VIII—Committee on Veterans’ Affairs.
Title IX—Committee on Ways and Means—Nonmedicare.
Title X—Committee on Ways and Means—Medicare.
Title XI—Budget Enforcement.
TITLE I—COMMITTEE ON
AGRICULTURE
SEC. 1001. EXEMPTION.
Section 6(o) of the Food Stamp Act of 1977 (7
U.S.C. 2015(o)) is amended—
(1) in paragraph (2)(D), by striking ‘‘or (5)’’
and inserting ‘‘(5), or (6)’’;
(2) by redesignating paragraphs (5) and (6) as
paragraphs (6) and (7), respectively; and
(3) by inserting after paragraph (4) the follow-
ing new paragraph:
‘‘(5) 15-PERCENT EXEMPTION.—
‘‘(A) DEFINITIONS.—In this paragraph:
‘‘(i) CASELOAD.—The term ‘caseload’
means the average monthly number of in-
dividuals receiving food stamps during the
12-month period ending the preceding
June 30.
‘‘(ii) 
COVERED
INDIVIDUAL.—The
term ‘covered individual’ means a food
stamp recipient, or an individual denied
eligibility for food stamp benefits solely
due to paragraph (2), who—
‘‘(I) is not eligible for an excep-
tion under paragraph (3);
‘‘(II) does not reside in an area
covered by a waiver granted under
paragraph (4);
‘‘(III) is not complying with sub-
paragraph (A), (B), or (C) of para-
graph (2);
‘‘(IV) is not in the first 3 months
of eligibility under paragraph (2); and
‘‘(V) is not receiving benefits
under paragraph (6).
‘‘(B) GENERAL
RULE.—Subject to sub-
paragraphs (C) through (F), a State agency
may provide an exemption from the require-
ments of paragraph (2) for covered individuals.
‘‘(C) FISCAL YEAR 1998.—Subject to sub-
paragraph (E), for fiscal year 1998, a State
agency may provide a number of exemptions
such that the average monthly number of the
exemptions in effect during the fiscal year does
not exceed 15 percent of the number of covered
individuals in the State in fiscal year 1998, as
estimated by the Secretary, based on the survey
conducted to carry out section 16(c) for fiscal
year 1996 and such other factors as the Sec-
retary considers appropriate due to the timing
and limitations of the survey.
‘‘(D) SUBSEQUENT FISCAL YEARS.—Sub-
ject to subparagraphs (E) and (F), for fiscal
year 1999 and each subsequent fiscal year, a
State agency may provide a number of exemp-
tions such that the average monthly number of
the exemptions in effect during the fiscal year
does not exceed 15 percent of the number of
covered individuals in the State, as estimated
by the Secretary under subparagraph (C), ad-
justed by the Secretary to reflect changes in the
State’s caseload and the Secretary’s estimate of
changes in the proportion of food stamp recipi-
ents covered by waivers granted under para-
graph (4).
‘‘(E) CASELOAD ADJUSTMENTS.—The Sec-
retary shall adjust the number of individuals es-
timated for a State under subparagraph (C) or
(D) during a fiscal year if the number of food
stamp recipients in the State varies by a signifi-
cant number from the caseload, as determined
by the Secretary.
‘‘(F) EXEMPTION ADJUSTMENTS.—During
fiscal year 1999 and each subsequent fiscal
year, the Secretary shall increase or decrease
the number of individuals who may be granted
an exemption by a State agency to the extent
that the average monthly number of exemptions
in effect in the State for the preceding fiscal
year is greater or less than the average monthly
number of exemptions estimated for the State
agency during such preceding fiscal year.
‘‘(G) REPORTING REQUIREMENT.—A State
agency shall submit such reports to the Sec-
retary as the Secretary determines are nec-
essary to ensure compliance with this para-
graph.’’.
SEC. 1002. ADDITIONAL FUNDING FOR EMPLOYMENT AND
TRAINING.
(a) IN GENERAL.—Section 16(h) of the Food Stamp
Act of 1977 (7 U.S.C. 2025(h)) is amended—
(1) by striking paragraph (1) and inserting the
following new paragraph:
‘‘(1) IN GENERAL.—
‘‘(A) AMOUNTS.—To carry out employ-
ment and training programs, the Secretary
shall reserve for allocation to State agencies, to
remain available until expended, from funds
made available for each fiscal year under sec-
tion 18(a)(1) the amount of—
‘‘(i) for fiscal year 1996, $75,000,000;
‘‘(ii) 
for 
fiscal 
year 
1997,
$79,000,000;
‘‘(iii) 
for 
fiscal 
year 
1998,
$221,000,000;
‘‘(iv) 
for 
fiscal 
year 
1999,
$224,000,000;
‘‘(v) 
for 
fiscal 
year 
2000,
$226,000,000;
‘‘(vi) 
for 
fiscal 
year 
2001,
$228,000,000; and
‘‘(vii) 
for 
fiscal 
year 
2002,
$210,000,000.
‘‘(B) LIMITATIONS.—The Secretary shall
ensure that—
‘‘(i) the funds provided in this sub-
paragraph shall not be used for food stamp
recipients who receive benefits under a
State program funded under part A of title
IV of the Social Security Act (42 U.S.C.
601 et seq.); and
‘‘(ii) not less than 80 percent of the funds
provided in this subparagraph shall be used by
a State agency for employment and training
programs under section 6(d)(4), other than job
search or job search training programs, for food
stamp recipients not excepted by section
6(o)(3).
‘‘(C) ALLOCATION.—
‘‘(i) 
ALLOCATION
FORMULA.—The
Secretary shall allocate the amounts re-
served under subparagraph (A) among the
State agencies using a reasonable formula,
as determined and adjusted by the Sec-
retary each fiscal year, to reflect changes
in each State’s caseload (as defined in sec-
tion 6(o)(5)(A)) that reflects the propor-
tion of food stamp recipients who reside in
each State—
‘‘(I) who are not eligible for an
exception under section 6(o)(3); and
‘‘(II) who do not reside in an
area subject to the waiver granted by
the Secretary under section 6(o)(4), if
the State agency does not provide em-
ployment and training services in the
area to food stamp recipients not ex-
cepted by section 6(o)(3).
‘‘(ii) REPORTING
REQUIREMENT.—A
State agency shall submit such reports to
the Secretary as the Secretary determines
are necessary to ensure compliance with
this paragraph.’’; and
‘‘(D) REALLOCATION.—
‘‘(i) NOTIFICATION.—A State agency
shall promptly notify the Secretary if the
State agency determines that it will not ex-
pend all of the funds allocated to it under
subparagraph (B).
‘‘(ii) REALLOCATION.—On notification
under clause (i), the Secretary shall reallo-
cate the funds that the State agency will
not expend as the Secretary considers ap-
propriate and equitable.
‘‘(E) MINIMUM
ALLOCATION.—Notwith-
standing subparagraphs (A) through (C), the
Secretary shall ensure that each State agency
operating an employment and training program
shall receive not less than $50,000 for each fis-
cal year.
‘‘(F) MAINTENANCE OF EFFORT.—To re-
ceive the additional funding under subpara-
graph (A), as provided by the amendment made
by section 1002 of the Balanced Budget Act of
1997, a State agency shall maintain the ex-
penditures of the State agency for employment
and training programs and workfare programs
for any fiscal year under paragraph (2), and
administrative expenses under section 20(g)(1),
at a level that is not less than the level of the
expenditures by the State agency to carry out
the programs for fiscal year 1996.’’;
(2) by redesignating paragraphs (2) through
(5) as paragraphs (3) through (6), respectively;
(3) by inserting after paragraph (1) the follow-
ing new paragraph:
(2) the rights to challenge determinations re-
garding eligibility or rights to benefits; and
(3) determinations regarding quality control or
error rates.
TITLE II—COMMITTEE ON BANK-
ING AND FINANCIAL SERV-
ICES
SEC. 2001. TABLE OF CONTENTS.
The table of contents for this title is as follows:
TITLE II—COMMITTEE ON BANKING AND FINANCIAL SERVICES
Sec. 2001. Table of contents.
Sec. 2002. Extension of foreclosure avoidance and borrower assistance provi-
sions for FHA single family housing mortgage insurance pro-
gram.
Sec. 2003. Adjustment of maximum monthly rents for certain dwelling units in
new construction and substantial or moderate rehabilitation
projects assisted under section 8 rental assistance program.
Sec. 2004. Adjustment of maximum monthly rents for non-turnover dwelling
units assisted under section 8 rental assistance program.
SEC. 2002. EXTENSION OF FORECLOSURE AVOIDANCE AND
BORROWER ASSISTANCE PROVISIONS FOR
FHA SINGLE FAMILY HOUSING MORTGAGE
INSURANCE PROGRAM.
Section 407 of The Balanced Budget Downpayment
Act, I (12 U.S.C. 1710 note) is amended—
(1) in subsection (c)—
(A) by striking ‘‘only’’; and
(B) by inserting ‘‘, on, or after’’ after ‘‘be-
fore’’; and
(2) by striking subsection (e).
striking ‘‘September 30, 1998’’ and inserting ‘‘September
30, 2002’’.
Subtitle B—Lease of Excess Strate-
gic Petroleum Reserve Capacity
SEC. 3101. LEASE OF EXCESS STRATEGIC PETROLEUM RE-
SERVE CAPACITY.
(a) AMENDMENT.—Part B of title I of the Energy
Policy and Conservation Act (42 U.S.C. 6231 et seq.) is
amended by adding at the end the following:
‘‘USE OF UNDERUTILIZED FACILITIES
‘‘SEC. 168. (a) AUTHORITY.—Notwithstanding any
other provision of this title, the Secretary, by lease or oth-
erwise, for any term and under such other conditions as
the Secretary considers necessary or appropriate, may
store in underutilized Strategic Petroleum Reserve facili-
ties petroleum product owned by a foreign government or
its representative. Petroleum products stored under this
section are not part of the Strategic Petroleum Reserve
and may be exported without license from the United
States.
‘‘(b) PROTECTION OF FACILITIES.—All agreements
entered into pursuant to subsection (a) shall contain provi-
sions providing for fees to fully compensate the United
States for all costs of storage and removals of petroleum
products, including the cost of replacement facilities neces-
sitated as a result of any withdrawals.
‘‘(c) ACCESS TO STORED OIL.—The Secretary shall
ensure that agreements to store petroleum products for
foreign governments or their representatives do not affect
the ability of the United States to withdraw, distribute,
or sell petroleum from the Strategic Petroleum Reserve
in response to an energy emergency or to the obligations
of the United States under the Agreement on an Inter-
national Energy Program.
‘‘(d) AVAILABILITY
OF FUNDS.—Funds collected
through the leasing of Strategic Petroleum Reserve facili-
ties authorized by subsection (a) after September 30,
2002, shall be used by the Secretary of Energy without
further appropriation for the purchase of oil for, and oper-
ation and maintenance costs of, the Strategic Petroleum
Reserve.’’.
(b) TABLE OF CONTENTS AMENDMENT.—The table
of contents of part B of title I of the Energy Policy and
Conservation Act is amended by adding at the end the
following:
‘‘Sec. 168. Use of underutilized facilities.’’.
Subtitle C—Sale of DOE Assets
SEC. 3201. SALE OF DOE SURPLUS URANIUM ASSETS.
(a) IN GENERAL.—The Secretary of Energy shall,
during the period fiscal year 1999 through fiscal year
2002, sell 3.2 million pounds per year of natural and low-
enriched uranium that the President has determined is not
necessary for national security needs. Such sales shall
be—
(1) made for delivery after January 1, 1999;
(2) subject to a determination, for the period
fiscal year 1999 through fiscal year 2002, by the
Secretary under section 3112(d)(2)(B) of the USEC
Privatization Act (42 U.S.C. 2297h–10(d)(2)(B));
and
(3) made at a price not less than the fair mar-
ket value of the uranium and in a manner that
maximizes proceeds to the Treasury.
The Secretary shall receive the proceeds from such sale
in the period fiscal year 1999 through fiscal year 2002
and shall deposit such proceeds in the General Fund of
the Treasury.
(b) COSTS.—The costs of making the sales required
by subsection (a) shall be covered by the unobligated bal-
ances of appropriations of the Department of Energy.
Subtitle D—Communications
SEC. 3301. SPECTRUM AUCTIONS.
(a) EXTENSION AND EXPANSION OF AUCTION AU-
THORITY.—
(1) AMENDMENTS.—Section 309(j) of the Com-
munications Act of 1934 (47 U.S.C. 309(j)) is
amended—
(A) by striking paragraphs (1) and (2) and
inserting in lieu thereof the following:
‘‘(1) GENERAL AUTHORITY.—If, consistent with
the obligations described in paragraph (6)(E), mutu-
ally exclusive applications are accepted for any ini-
tial license or construction permit which will involve
an exclusive use of the electromagnetic spectrum,
then the Commission shall grant such license or per-
mit to a qualified applicant through a system of
competitive bidding that meets the requirements of
this subsection.
‘‘(2) EXEMPTIONS.—The competitive bidding
authority granted by this subsection shall not apply
to licenses or construction permits issued by the
Commission—
‘‘(A) that, as the result of the Commission
carrying out the obligations described in para-
graph (6)(E), are not mutually exclusive;
‘‘(B) for public safety radio services, in-
cluding private internal radio services used by
non-Government entities, that—
‘‘(i) protect the safety of life, health,
or property; and
‘‘(ii) are not made commercially avail-
able to the public;
‘‘(C) for initial licenses or construction
permits assigned by the Commission to existing
terrestrial broadcast licensees for new terres-
trial digital television services; or
‘‘(D) for public telecommunications serv-
ices, as defined in section 397(14) of the Com-
munications Act of 1934 (47 U.S.C. 397(14)),
when the license application is for channels re-
served for noncommercial use.’’;
(B) in paragraph (3)—
(i) by inserting after the second sen-
tence the following new sentence: ‘‘The
Commission shall, directly or by contract,
provide for the design and conduct (for
purposes of testing) of competitive bidding
using a contingent combinatorial bidding
system that permits prospective bidders to
bid on combinations or groups of licenses
in a single bid and to enter multiple alter-
native bids within a single bidding round.’’;
(ii) by striking ‘‘and’’ at the end of
subparagraph (C);
(iii) by striking the period at the end
of subparagraph (D) and inserting ‘‘;
and’’; and
(iv) by adding at the end the following
new subparagraph:
‘‘(E) ensuring that, in the scheduling of
any competitive bidding under this subsection,
an adequate period is allowed—
‘‘(i) before issuance of bidding rules,
to permit notice and comment on proposed
auction procedures; and
‘‘(ii) after issuance of bidding rules, to
ensure that interested parties have a suffi-
cient time to develop business plans, assess
market conditions, and evaluate the avail-
ability of equipment for the relevant serv-
ices.’’;
(C) in paragraph (4)—
(i) by striking ‘‘and’’ at the end of
subparagraph (D);
(ii) by striking the period at the end
of subparagraph (E) and inserting ‘‘;
and’’; and
(iii) by adding at the end the follow-
ing new subparagraph:
‘‘(F) establish methods by which a mini-
mum bid, in an amount that is more than
nominal in relation to the value of the public
spectrum resource being made available, will be
required to obtain any license or permit being
assigned pursuant to the competitive bidding.’’;
(D) in paragraph (8)—
(i) by striking subparagraph (B); and
(ii) by redesignating subparagraph
(C) as subparagraph (B);
(E) in paragraph (11), by striking ‘‘Sep-
tember 30, 1998’’ and inserting ‘‘December 31,
2002’’; and
(F) in paragraph (13)(F), by striking
‘‘September 30, 1998’’ and inserting ‘‘the date
of enactment of the Balanced Budget Act of
1997’’.
(2) CONFORMING AMENDMENT.—Subsection (i)
of section 309 of the Communications Act of 1934
(47 U.S.C. 309(i)) is repealed.
(3) EFFECTIVE DATE.—The amendment made
by paragraph (1)(A) shall not apply with respect to
any license or permit for which the Federal Commu-
nications Commission has accepted mutually exclu-
sive applications on or before the date of enactment
of this Act.
(b) COMMISSION OBLIGATION TO MAKE ADDITIONAL
SPECTRUM AVAILABLE BY AUCTION.—
(1) IN
GENERAL.—The Federal Communica-
tions Commission shall complete all actions nec-
essary to permit the assignment, by September 30,
2002, by competitive bidding pursuant to section
309(j) of the Communications Act of 1934 (47
U.S.C. 309(j)) of licenses for the use of bands of
frequencies that—
(A) individually span not less than 25
megahertz, unless a combination of smaller
bands can, notwithstanding the provisions of
paragraph (7) of such section, reasonably be ex-
pected to produce greater receipts;
(B) in the aggregate span not less than
100 megahertz;
(C) are located below 3 gigahertz;
(D) have not, as of the date of enactment
of this Act—
(i) been designated by Commission
regulation for assignment pursuant to such
section;
(ii) been identified by the Secretary of
Commerce pursuant to section 113 of the
National Telecommunications and Infor-
mation Administration Organization Act;
(iii) been allocated for Federal Gov-
ernment use pursuant to section 305 of the
Communications Act of 1934 (47 U.S.C.
305);
(iv) been designated in section 3303
of this Act; or
(v) been allocated for unlicensed use
pursuant to part 15 of the Commission’s
regulations (47 C.F.R. Part 15), if the
competitive bidding for licenses would
interfere with operation of end-user prod-
ucts permitted under such regulations;
(E) notwithstanding section 115(b)(1)(B)
of the National Telecommunications and Infor-
mation Administration Organization Act (47
U.S.C. 925(b)(1)(B)) or any proposal pursuant
to such section, include frequencies at 1,710–
1,755 megahertz;
(F) include frequencies at 2,110–2,150
megahertz; and
(G) include 15 megahertz from within the
bands of frequencies at 1,990–2,110 megahertz.
(2) SCHEDULE
FOR
ASSIGNMENT
OF 1,710–
1,755 MEGAHERTZ.—The Commission shall com-
mence competitive bidding for the commercial li-
censes pursuant to paragraph (1)(E) after January
1, 2001. The Commission shall complete the assign-
ment of such commercial licenses, and report to the
Congress the total revenues from such competitive
bidding, by September 30, 2002.
(3) USE
OF
BANDS
AT
2,110-2,150
MEGA-
HERTZ.—The Commission shall reallocate spectrum
located at 2,110-2,150 megahertz for assignment by
competitive bidding unless the Commission deter-
mines that auction of other spectrum (A) better
serves the public interest, convenience, and neces-
sity, and (B) can reasonably be expected to produce
greater receipts. If the Commission makes such a
determination, then the Commission shall, within 2
years after the date of enactment of this Act, iden-
tify an alternative 40 megahertz, and report to the
Congress an identification of such alternative 40
megahertz for assignment by competitive bidding.
(4) USE OF 15 MEGAHERTZ FROM BANDS AT
1,990-2,110 MEGAHERTZ.—The Commission shall re-
allocate 15 megahertz from spectrum located at
1,990-2,110 megahertz for assignment by competi-
tive bidding unless the President determines such
spectrum cannot be reallocated due to the need to
protect incumbent Federal systems from inter-
ference, and that allocation of other spectrum (A)
better serves the public interest, convenience, and
necessity, and (B) can reasonably be expected to
produce greater receipts. If the President makes
such a determination, then the President shall, with-
in 2 years after the date of enactment of this Act,
identify alternative bands of frequencies totalling 15
megahertz, and report to the Congress an identifica-
tion of such alternative bands for assignment by
competitive bidding.
(5) CRITERIA FOR REASSIGNMENT.—In making
available bands of frequencies for competitive bid-
ding pursuant to paragraph (1), the Commission
shall—
(A) seek to promote the most efficient use
of the spectrum;
(B) take into account the cost to incum-
bent licensees of relocating existing uses to
other bands of frequencies or other means of
communication; and
(C) comply with the requirements of inter-
national agreements concerning spectrum allo-
cations.
(6) NOTIFICATION TO NTIA.—The Commission
shall notify the Secretary of Commerce if—
(A) the Commission is not able to provide
for the effective relocation of incumbent licens-
ees to bands of frequencies that are available to
the Commission for assignment; and
(B) the Commission has identified bands
of frequencies that are—
(i) suitable for the relocation of such
licensees; and
(ii) allocated for Federal Government
use, but that could be reallocated pursuant
to part B of the National Telecommuni-
cations and Information Administration
Organization Act (as amended by this
Act).
(c) IDENTIFICATION AND REALLOCATION OF FRE-
QUENCIES.—The National Telecommunications and Infor-
mation Administration Organization Act (47 U.S.C. 901
et seq.) is amended—
(1) in section 113, by adding at the end the fol-
lowing new subsection:
‘‘(f) ADDITIONAL REALLOCATION REPORT.—If the
Secretary receives a notice from the Commission pursuant
to section 3301(b)(3) of the Balanced Budget Act of 1997,
the Secretary shall prepare and submit to the President,
the Commission, and the Congress a report recommending
for reallocation for use other than by Federal Government
stations under section 305 of the 1934 Act (47 U.S.C.
305), bands of frequencies that are suitable for the uses
identified in the Commission’s notice. The Commission
shall, not later than one year after receipt of such report,
prepare, submit to the President and the Congress, and
implement, a plan for the immediate allocation and assign-
ment of such frequencies under the 1934 Act to incumbent
licencees described in section 3301(b)(3) of the Balanced
Budget Act of 1997.’’; and
(2) in section 114(a)(1), by striking ‘‘(a) or
(d)(1)’’ and inserting ‘‘(a), (d)(1), or (f)’’.
(d) 
IDENTIFICATION
AND
REALLOCATION
OF
AUCTIONABLE
FREQUENCIES.—The 
National 
Tele-
communications and Information Administration Organi-
zation Act (47 U.S.C. 901 et seq.) is amended—
(1) in section 113(b)—
(A) by striking the heading of paragraph
(1) and inserting ‘‘INITIAL REALLOCATION RE-
PORT’’;
(B) by inserting ‘‘in the first report re-
quired by subsection (a)’’ after ‘‘recommend for
reallocation’’ in paragraph (1);
(C) by inserting ‘‘or (3)’’ after ‘‘paragraph
(1)’’ each place it appears in paragraph (2);
and
(D) by inserting after paragraph (2) the
following new paragraph:
‘‘(3) SECOND REALLOCATION REPORT.—In ac-
cordance with the provisions of this section, the Sec-
retary shall recommend for reallocation in the sec-
ond report required by subsection (a), for use other
than by Federal Government stations under section
305 of the 1934 Act (47 U.S.C. 305), a band or
bands of frequencies that—
‘‘(A) in the aggregate span not less than
20 megahertz;
‘‘(B) individually span not less than 20
megahertz, unless a combination of smaller
bands can reasonably be expected to produce
greater receipts;
‘‘(C) are located below 3 gigahertz; and
‘‘(D) meet the criteria specified in para-
graphs (1) through (5) of subsection (a).’’; and
(2) in section 115—
(A) in subsection (b), by striking ‘‘the re-
port required by section 113(a)’’ and inserting
‘‘the initial reallocation report required by sec-
tion 113(a)’’; and
(B) by adding at the end the following new
subsection:
‘‘(c) ALLOCATION
AND
ASSIGNMENT
OF
FRE-
QUENCIES IDENTIFIED IN THE SECOND REALLOCATION
REPORT.—With respect to the frequencies made available
for reallocation pursuant to section 113(b)(3), the Com-
mission shall, not later than one year after receipt of the
second reallocation report required by such section, pre-
pare, submit to the President and the Congress, and im-
plement, a plan for the immediate allocation and assign-
ment under the 1934 Act of all such frequencies in accord-
ance with section 309(j) of such Act.’’.
SEC. 3302. AUCTION OF RECAPTURED BROADCAST TELE-
VISION SPECTRUM.
Section 309(j) of the Communications Act of 1934
(47 U.S.C. 309(j)) is amended by adding at the end the
following new paragraph:
‘‘(14) AUCTION
OF
RECAPTURED
BROADCAST
TELEVISION SPECTRUM.—
‘‘(A) LIMITATIONS ON TERMS OF TERRES-
TRIAL
TELEVISION
BROADCAST
LICENSES.—A
television license that authorizes analog tele-
vision services may not be renewed to authorize
such service for a period that extends beyond
December 31, 2006. The Commission shall have
the authority to grant by regulation an exten-
sion of such date to licensees in a market if the
Commission determines that more than 5 per-
cent of households in such market continue to
rely exclusively on over-the-air terrestrial analog
television signals.
‘‘(B) SPECTRUM
REVERSION
AND
RE-
SALE.—
‘‘(i) The Commission shall ensure
that, when the authority to broadcast ana-
log television services under a license ex-
pires pursuant to subparagraph (A), each
licensee shall return spectrum according to
the Commission’s direction and the Com-
mission shall reclaim such spectrum.
‘‘(ii) Licensees for new services occu-
pying spectrum reclaimed pursuant to
clause (i) shall be selected in accordance
with this subsection. The Commission shall
complete the assignment of such licenses,
and report to the Congress the total reve-
nues from such competitive bidding, by
September 30, 2002.
‘‘(C) CERTAIN LIMITATIONS ON QUALIFIED
BIDDERS PROHIBITED.—In prescribing any reg-
ulations relating to the qualification of bidders
for spectrum reclaimed pursuant to subpara-
graph (B)(i), the Commission shall not—
‘‘(i) preclude any party from being a
qualified bidder for spectrum that is allo-
cated for any use that includes digital tele-
vision service on the basis of—
‘‘(I) the Commission’s duopoly
rule (47 C.F.R. 73.3555(b)); or
‘‘(II) the Commission’s news-
paper cross-ownership rule (47 C.F.R.
73.3555(d)); or
‘‘(ii) apply either such rule to preclude
such a party that is a successful bidder in
a competitive bidding for such spectrum
from using such spectrum for digital tele-
vision service.
‘‘(D) DEFINITIONS.—As used in this para-
graph:
‘‘(i) The term ‘digital television serv-
ice’ means television service provided using
digital technology to enhance audio quality
and video resolution, as further defined in
the Memorandum Opinion, Report, and
Order of the Commission entitled ‘Ad-
vanced Television Systems and Their Im-
pact Upon the Existing Television Service’,
MM Docket No. 87–268 and any subse-
quent Commission proceedings dealing
with digital television.
‘‘(ii) The term ‘analog television serv-
ice’ means service provided pursuant to the
transmission standards prescribed by the
Commission in section 73.682(a) of its reg-
ulation (47 CFR 73.682(a)).’’.
SEC. 3303. ALLOCATION AND ASSIGNMENT OF NEW PUBLIC
SAFETY AND COMMERCIAL LICENSES.
(a) IN GENERAL.—The Federal Communications
Commission shall, not later than January 1, 1998, allocate
on a national, regional, or market basis, from radio spec-
trum between 746 megahertz and 806 megahertz—
(1) 24 megahertz of that spectrum for public
safety services according to the terms and conditions
established by the Commission, unless the Commis-
sion determines that the needs for public safety serv-
ices can be met in particular areas with allocations
of less than 24 megahertz; and
(2) the remainder of that spectrum for commer-
cial purposes to be assigned by competitive bidding
in accordance with section 309(j).
(b) ASSIGNMENT.—The Commission shall—
(1) assign the licenses for public safety created
pursuant to subsection (a) no later than March 31,
1998;
(2) commence competitive bidding for the com-
mercial licenses created pursuant to subsection (a)
after January 1, 2001; and
(3) complete competitive bidding for such com-
mercial licenses, and report to the Congress the total
revenues from such competitive bidding, by Septem-
ber 30, 2002.
(c) LICENSING OF UNUSED FREQUENCIES FOR PUB-
LIC SAFETY RADIO SERVICES.—
(1) USE OF UNUSED CHANNELS FOR PUBLIC
SAFETY.—It shall be the policy of the Commission,
notwithstanding any other provision of this Act or
any other law, to waive whatever licensee eligibility
and other requirements (including bidding require-
ments) are applicable in order to permit the use of
unassigned frequencies for public safety purposes by
a State or local governmental agency upon a show-
ing that—