108TH CONGRESS
2D SESSION
H. R. 5419
AN ACT
To amend the National Telecommunications and
Information Administration Organization Act to
facilitate the reallocation of spectrum from gov-
ernmental to commercial users; to improve, en-
hance, and promote the Nation’s homeland secu-
rity, public safety, and citizen activated emer-
gency response capabilities through the use of en-
hanced 911 services, to further upgrade Public
Safety Answering Point capabilities and related
functions in receiving E–911 calls, and to sup-
port in the construction and operation of a ubiq-
uitous and reliable citizen activated system; and
to provide that funds received as universal serv-
ice contributions under section 254 of the Com-
munications Act of 1934 and the universal serv-
ice support programs established pursuant there-
to are not subject to certain provisions of title
31, United States Code, commonly known as the
Antideficiency Act, for a period of time.
108TH CONGRESS
2D SESSION
H. R. 5419
AN ACT
To amend the National Telecommunications and Information
Administration Organization Act to facilitate the re-
allocation of spectrum from governmental to commercial
users; to improve, enhance, and promote the Nation’s
homeland security, public safety, and citizen activated
emergency response capabilities through the use of en-
hanced 911 services, to further upgrade Public Safety
Answering Point capabilities and related functions in
receiving E–911 calls, and to support in the construction
and operation of a ubiquitous and reliable citizen acti-
vated system; and to provide that funds received as uni-
versal service contributions under section 254 of the
Communications Act of 1934 and the universal service
support programs established pursuant thereto are not
subject to certain provisions of title 31, United States
Code, commonly known as the Antideficiency Act, for
a period of time.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
TITLE I—E–911
SEC. 101. SHORT TITLE.
This title may be cited as the ‘‘Ensuring Needed Help
Arrives Near Callers Employing 911 Act of 2004’’ or the
‘‘ENHANCE 911 Act of 2004’’.
SEC. 102. FINDINGS.
The Congress finds that—
(1) for the sake of our Nation’s homeland secu-
rity and public safety, a universal emergency tele-
phone number (911) that is enhanced with the most
modern and state-of-the-art telecommunications ca-
pabilities possible should be available to all citizens
in all regions of the Nation;
(2) enhanced emergency communications re-
quire Federal, State, and local government resources
and coordination;
(3) any funds that are collected from fees im-
posed on consumer bills for the purposes of funding
911 services or enhanced 911 should go only for the
purposes for which the funds are collected; and
(4) enhanced 911 is a high national priority
and it requires Federal leadership, working in co-
operation with State and local governments and with
the numerous organizations dedicated to delivering
emergency communications services.
SEC. 103. PURPOSES.
The purposes of this title are—
(1) to coordinate 911 services and E–911 serv-
ices, at the Federal, State, and local levels; and
(2) to ensure that funds collected on tele-
communications bills for enhancing emergency 911
services are used only for the purposes for which the
funds are being collected.
SEC. 104. COORDINATION OF E–911 IMPLEMENTATION.
Part C of title I of the National Telecommunications
and Information Administration Organization Act (47
U.S.C. 901 et seq.) is amended by adding at the end the
following:
‘‘SEC. 158. COORDINATION OF E–911 IMPLEMENTATION.
‘‘(a) E–911 IMPLEMENTATION COORDINATION OF-
FICE.—
‘‘(1) ESTABLISHMENT.—The Assistant Sec-
retary and the Administrator of the National High-
way Traffic Safety Administration shall—
‘‘(A) establish a joint program to facilitate
coordination and communication between Fed-
eral, State, and local emergency communica-
tions systems, emergency personnel, public safe-
ty organizations, telecommunications carriers,
and telecommunications equipment manufactur-
ers and vendors involved in the implementation
of E–911 services; and
‘‘(B) create an E-911 Implementation Co-
ordination Office to implement the provisions of
this section.
‘‘(2) MANAGEMENT PLAN.—The Assistant Sec-
retary and the Administrator shall jointly develop a
management plan for the program established under
this section. Such plan shall include the organiza-
tional structure and funding profiles for the 5-year
duration of the program. The Assistant Secretary
and the Administrator shall, within 90 days after
the date of enactment of this Act, submit the man-
agement plan to the Committees on Energy and
Commerce and Appropriations of the House of Rep-
resentatives and the Committees on Commerce,
Science, and Transportation and Appropriations of
the Senate.
‘‘(3) PURPOSE OF OFFICE.—The Office shall—
‘‘(A) take actions, in concert with coordi-
nators designated in accordance with subsection
(b)(3)(A)(ii), to improve such coordination and
communication;
‘‘(B) develop, collect, and disseminate in-
formation concerning practices, procedures, and
technology used in the implementation of E–
911 services;
‘‘(C) advise and assist eligible entities in
the preparation of implementation plans re-
quired under subsection (b)(3)(A)(iii);
‘‘(D) receive, review, and recommend the
approval or disapproval of applications for
grants under subsection (b); and
‘‘(E) oversee the use of funds provided by
such grants in fulfilling such implementation
plans.
‘‘(4) REPORTS.—The Assistant Secretary and
the Administrator shall provide a joint annual report
to Congress by the first day of October of each year
on the activities of the Office to improve coordina-
tion and communication with respect to the imple-
mentation of E–911 services.
‘‘(b) PHASE II E–911 IMPLEMENTATION GRANTS.—
‘‘(1) MATCHING GRANTS.—The Assistant Sec-
retary and the Administrator, after consultation with
the Secretary of Homeland Security and the Chair-
man of the Federal Communications Commission,
and acting through the Office, shall provide grants
to eligible entities for the implementation and oper-
ation of Phase II E–911 services.
‘‘(2) MATCHING REQUIREMENT.—The Federal
share of the cost of a project eligible for a grant
under this section shall not exceed 50 percent. The
non-Federal share of the cost shall be provided from
non-Federal sources.
‘‘(3) COORDINATION REQUIRED.—In providing
grants under paragraph (1), the Assistant Secretary
and the Administrator shall require an eligible entity
to certify in its application that—
‘‘(A) in the case of an eligible entity that
is a State government, the entity—
‘‘(i) has coordinated its application
with the public safety answering points (as
such term is defined in section 222(h)(4)
of the Communications Act of 1934) lo-
cated within the jurisdiction of such entity;
‘‘(ii) has designated a single officer or
governmental body of the entity to serve as
the coordinator of implementation of E–
911 services, except that such designation
need not vest such coordinator with direct
legal authority to implement E–911 serv-
ices or manage emergency communications
operations;
‘‘(iii) has established a plan for the
coordination and implementation of E–911
services; and
‘‘(iv) has integrated telecommuni-
cations services involved in the implemen-
tation and delivery of phase II E–911 serv-
ices; or
‘‘(B) in the case of an eligible entity that
is not a State, the entity has complied with
clauses (i), (iii), and (iv) of subparagraph (A),
and the State in which it is located has com-
plied with clause (ii) of such subparagraph.
‘‘(4) CRITERIA.—The Assistant Secretary and
the Administrator shall jointly issue regulations
within 180 days after the date of enactment of the
ENHANCE 911 Act of 2004, after a public com-
ment period of not less than 60 days, prescribing the
criteria for selection for grants under this section,
and shall update such regulations as necessary. The
criteria shall include performance requirements and
a timeline for completion of any project to be fi-
nanced by a grant under this section.
‘‘(c) DIVERSION OF E–911 CHARGES.—
‘‘(1) DESIGNATED
E–911
CHARGES.—For the
purposes of this subsection, the term ‘designated E–
911 charges’ means any taxes, fees, or other charges
imposed by a State or other taxing jurisdiction that
are designated or presented as dedicated to deliver
or improve E–911 services.
‘‘(2) CERTIFICATION.—Each applicant for a
matching grant under this section shall certify to the
Assistant Secretary and the Administrator at the
time of application, and each applicant that receives
such a grant shall certify to the Assistant Secretary
and the Administrator annually thereafter during
any period of time during which the funds from the
grant are available to the applicant, that no portion
of any designated E–911 charges imposed by a
State or other taxing jurisdiction within which the
applicant is located are being obligated or expended
for any purpose other than the purposes for which
such charges are designated or presented during the
period beginning 180 days immediately preceding
the date of the application and continuing through
the period of time during which the funds from the
grant are available to the applicant.
‘‘(3) CONDITION
OF
GRANT.—Each applicant
for a grant under this section shall agree, as a con-
dition of receipt of the grant, that if the State or
other taxing jurisdiction within which the applicant
is located, during any period of time during which
the funds from the grant are available to the appli-
cant, obligates or expends designated E–911 charges
for any purpose other than the purposes for which
such charges are designated or presented, all of the
funds from such grant shall be returned to the Of-
fice.
‘‘(4) PENALTY FOR PROVIDING FALSE INFOR-
MATION.—Any applicant that provides a certification
under paragraph (1) knowing that the information
provided in the certification was false shall—
‘‘(A) not be eligible to receive the grant
under subsection (b);
‘‘(B) return any grant awarded under sub-
section (b) during the time that the certification
was not valid; and
‘‘(C) not be eligible to receive any subse-
quent grants under subsection (b).
‘‘(d) AUTHORIZATION; TERMINATION.—
‘‘(1) AUTHORIZATION.—There are authorized to
be appropriated to the Department of Transpor-
tation, for the purposes of grants under the joint
program operated under this section with the De-
partment 
of 
Commerce, 
not 
more 
than
$250,000,000 for each of the fiscal years 2005
through 2009, not more than 5 percent of which for
any fiscal year may be obligated or expended for ad-
ministrative costs.
‘‘(2) TERMINATION.—The provisions of this
section shall cease to be effective on October 1,
2009.
‘‘(e) DEFINITIONS.—As used in this section:
‘‘(1) OFFICE.—The term ‘Office’ means the E–
911 Implementation Coordination Office.
‘‘(2) ADMINISTRATOR.—The term ‘Adminis-
trator’ means the Administrator of the National
Highway Traffic Safety Administration.
‘‘(3) ELIGIBLE ENTITY.—
‘‘(A) IN GENERAL.—The term ‘eligible en-
tity’ means a State or local government or a
tribal organization (as defined in section 4(l) of
the Indian Self-Determination and Education
Assistance Act (25 U.S.C. 450b(l))).
‘‘(B) INSTRUMENTALITIES.—Such term in-
cludes public authorities, boards, commissions,
and similar bodies created by one or more eligi-
ble entities described in subparagraph (A) to
provide E–911 services.
‘‘(C) EXCEPTION.—Such term does not in-
clude any entity that has failed to submit the
most recently required certification under sub-
section (c) within 30 days after the date on
which such certification is due.
‘‘(4) E–911 SERVICES.—The term ‘E–911 serv-
ices’ means both phase I and phase II enhanced 911
services, as described in section 20.18 of the Com-
mission’s regulations (47 C.F.R. 20.18), as in effect
on the date of enactment of the ENHANCE 911
Act of 2004, or as subsequently revised by the Fed-
eral Communications Commission.
‘‘(5) PHASE
II
E–911 SERVICES.—The term
‘phase II E–911 services’ means only phase II en-
hanced 911 services, as described in such section
20.18 (47 C.F.R. 20.18), as in effect on such date,
or as subsequently revised by the Federal Commu-
nications Commission.
‘‘(6) STATE.—The term ‘State’ means any
State of the United States, the District of Columbia,
Puerto Rico, the Northern Mariana Islands, and any
territory or possession of the United States.’’.
SEC. 105. GAO STUDY OF STATE AND LOCAL USE OF 911
SERVICE CHARGES.
(a) IN GENERAL.—Within 60 days after the date of
enactment of this Act, the Comptroller General shall ini-
tiate a study of—
(1) the imposition of taxes, fees, or other
charges imposed by States or political subdivisions
of States that are designated or presented as dedi-
cated to improve emergency communications serv-
ices, including 911 services or enhanced 911 serv-
ices, or related to emergency communications serv-
ices operations or improvements; and
(2) the use of revenues derived from such taxes,
fees, or charges.
(b) REPORT.—Within 18 months after initiating the
study required by subsection (a), the Comptroller General
shall transmit a report on the results of the study to the
Senate Committee on Commerce, Science, and Transpor-
tation and the House of Representatives Committee on
Energy and Commerce setting forth the findings, conclu-
sions, and recommendations, if any, of the study,
including—
(1) the identity of each State or political sub-
division that imposes such taxes, fees, or other
charges; and
(2) the amount of revenues obligated or ex-
pended by that State or political subdivision for any
purpose other than the purposes for which such
taxes, fees, or charges were designated or presented.
SEC. 106. REPORT ON THE DEPLOYMENT OF E–911 PHASE II
SERVICES BY TIER III SERVICE PROVIDERS.
Within 90 days after the date of enactment of this
Act, the Federal Communications Commission shall sub-
mit a report to the Committee on Energy and Commerce
of the House of Representatives and the Committee on
Commerce, Science, and Transportation of the Senate
detailing—
(1) the number of tier III commercial mobile
service providers that are offering phase II E–911
services;
(2) the number of requests for waivers from
compliance with the Commission’s phase II E–911
service requirements received by the Commission
from such tier III providers;
(3) the number of waivers granted or denied by
the Commission to such tier III providers;
(4) how long each waiver request remained
pending before it was granted or denied;
(5) how many waiver requests are pending at
the time of the filing of the report;
(6) when the pending requests will be granted
or denied;
(7) actions the Commission has taken to reduce
the amount of time a waiver request remains pend-
ing; and
(8) the technologies that are the most effective
in the deployment of phase II E–911 services by
such tier III providers.
SEC. 107. FCC REQUIREMENTS FOR CERTAIN TIER III CAR-
RIERS.
(a) IN GENERAL.—The Federal Communications
Commission shall act on any petition filed by a qualified
Tier III carrier requesting a waiver of compliance with the
requirements of section 20.18(g)(1)(v) of the Commis-
sion’s rules (47 C.F.R. 20.18(g)(1)(v)) within 100 days
after the Commission receives the petition. The Commis-
sion shall grant the waiver of compliance with the require-
ments of section 20.18(g)(1)(v) of the Commission’s rules
(47 C.F.R. 20.18(g)(1)(v)) requested by the petition if it
determines that strict enforcement of the requirements of
that section would result in consumers having decreased
access to emergency services.
(b) QUALIFIED TIER III CARRIER DEFINED.—In
this section, the term ‘‘qualified Tier III carrier’’ means
a provider of commercial mobile service (as defined in sec-
tion 332(d) of the Communications Act of 1934 (47
U.S.C. 332(d)) that had 500,000 or fewer subscribers as
of December 31, 2001.
TITLE II—SPECTRUM
RELOCATION
SEC. 201. SHORT TITLE.
This title may be cited as the ‘‘Commercial Spectrum
Enhancement Act’’.
SEC. 202. RELOCATION OF ELIGIBLE FEDERAL ENTITIES
FOR THE REALLOCATION OF SPECTRUM FOR
COMMERCIAL PURPOSES.
Section 113(g) of the National Telecommunications
and Information Administration Organization Act (47
U.S.C. 923(g)) is amended by striking paragraphs (1)
through (3) and inserting the following:
‘‘(1) ELIGIBLE FEDERAL ENTITIES.—Any Fed-
eral entity that operates a Federal Government sta-
tion assigned to a band of frequencies specified in
paragraph (2) and that incurs relocation costs be-
cause of the reallocation of frequencies from Federal
use to non-Federal use shall receive payment for
such costs from the Spectrum Relocation Fund, in
accordance with section 118 of this Act. For pur-
poses of this paragraph, Federal power agencies ex-
empted under subsection (c)(4) that choose to relo-
cate from the frequencies identified for reallocation
pursuant to subsection (a), are eligible to receive
payment under this paragraph.
‘‘(2) ELIGIBLE FREQUENCIES.—The bands of
eligible frequencies for purposes of this section are
as follows:
‘‘(A) the 216–220 megahertz band, the
1432–1435 megahertz band, the 1710–1755
megahertz band, and the 2385–2390 megahertz
band of frequencies; and
‘‘(B) any other band of frequencies reallo-
cated from Federal use to non-Federal use after
January 1, 2003, that is assigned by competi-
tive bidding pursuant to section 309(j) of the
Communications Act of 1934 (47 U.S.C.
309(j)), except for bands of frequencies pre-
viously identified by the National Telecommuni-
cations and Information Administration in the
Spectrum Reallocation Final Report, NTIA
Special Publication 95–32 (1995).
‘‘(3) DEFINITION OF RELOCATION COSTS.—For
purposes of this subsection, the term ‘relocation
costs’ means the costs incurred by a Federal entity
to achieve comparable capability of systems, regard-
less of whether that capability is achieved by relo-
cating to a new frequency assignment or by utilizing
an alternative technology. Such costs include—
assignment or assignments to which their
radiocommunications operations could be relo-
cated for purposes of calculating the estimated
relocation costs and timelines to be submitted
to the Commission pursuant to subparagraph
(A).
‘‘(C) To the extent practicable and con-
sistent with national security considerations,
the NTIA shall provide the information re-
quired by subparagraphs (A) and (B) by the ge-
ographic location of the Federal entities’ facili-
ties or systems and the frequency bands used
by such facilities or systems.
‘‘(5) NOTICE TO CONGRESSIONAL COMMITTEES
AND GAO.—The NTIA shall, at the time of providing
an initial estimate of relocation costs to the Commis-
sion under paragraph (4)(A), submit to Committees
on Appropriations and Energy and Commerce of the
House of Representatives for approval, to the Com-
mittees on Appropriations and Commerce, Science,
and Transportation of the Senate for approval, and
to the Comptroller General a copy of such estimate
and the timelines for relocation. Unless disapproved
within 30 days, the estimate shall be approved. If
disapproved, the NTIA may resubmit a revised ini-
tial estimate.
‘‘(6) IMPLEMENTATION OF PROCEDURES.—The
NTIA shall take such actions as necessary to ensure
the timely relocation of Federal entities’ spectrum-
related operations from frequencies defined in para-
graph (2) to frequencies or facilities of comparable
capability. Upon a finding by the NTIA that a Fed-
eral entity has achieved comparable capability of sys-
tems by relocating to a new frequency assignment or
by utilizing an alternative technology, the NTIA
shall terminate the entity’s authorization and notify
the Commission that the entity’s relocation has been
completed. The NTIA shall also terminate such enti-
ty’s authorization if the NTIA determines that the
entity has unreasonably failed to comply with the
timeline for relocation submitted by the Director of
the Office of Management and Budget under section
118(d)(2)(B).’’.
SEC. 203. MINIMUM AUCTION RECEIPTS AND DISPOSITION
OF PROCEEDS.
(a) AUCTION DESIGN.—Section 309(j)(3) of the
Communications Act of 1934 (47 U.S.C. 309(j)(3)) is
amended—
(1) by striking ‘‘and’’ at the end of subpara-
graph (D);
(2) by striking the period at the end of sub-
paragraph (E) and inserting ‘‘; and’’; and
(3) by adding at the end the following new sub-
paragraph:
‘‘(F) for any auction of eligible frequencies
described in section 113(g)(2) of the National
Telecommunications and Information Adminis-
tration Organization Act (47 U.S.C. 923(g)(2)),
the recovery of 110 percent of estimated reloca-
tion costs as provided to the Commission pursu-
ant to section 113(g)(4) of such Act.’’.
(b) SPECIAL AUCTION PROVISIONS FOR ELIGIBLE
FREQUENCIES.—Section 309(j) of such Act is further
amended by adding at the end the following new para-
graph:
‘‘(15) SPECIAL AUCTION PROVISIONS FOR ELI-
GIBLE FREQUENCIES.—
‘‘(A) SPECIAL REGULATIONS.—The Com-
mission shall revise the regulations prescribed
under paragraph (4)(F) of this subsection to
prescribe methods by which the total cash pro-
ceeds from any auction of eligible frequencies
described in section 113(g)(2) of the National
Telecommunications and Information Adminis-
tration Organization Act (47 U.S.C. 923(g)(2))
shall at least equal 110 percent of the total esti-
mated relocation costs provided to the Commis-
sion pursuant to section 113(g)(4) of such Act.
‘‘(B) CONCLUSION OF AUCTIONS CONTIN-
GENT ON MINIMUM PROCEEDS.—The Commis-
sion shall not conclude any auction of eligible
frequencies described in section 113(g)(2) of
such Act if the total cash proceeds attributable
to such spectrum are less than 110 percent of
the total estimated relocation costs provided to
the Commission pursuant to section 113(g)(4)
of such Act. If the Commission is unable to
conclude an auction for the foregoing reason,
the Commission shall cancel the auction, return
within 45 days after the auction cancellation
date any deposits from participating bidders
held in escrow, and absolve such bidders from
any obligation to the United States to bid in
any subsequent reauction of such spectrum.
‘‘(C) AUTHORITY TO ISSUE PRIOR TO DE-
AUTHORIZATION.—In any auction conducted
under the regulations required by subparagraph
(A), the Commission may grant a license as-
signed for the use of eligible frequencies prior
to the termination of an eligible Federal entity’s
authorization. However, the Commission shall
condition such license by requiring that the li-
censee cannot cause harmful interference to
such Federal entity until such entity’s author-
ization has been terminated by the National
Telecommunications and Information Adminis-
tration.’’.
(c) DEPOSIT OF PROCEEDS.—Paragraph (8) of sec-
tion 309(j) of the Communications Act of 1934 (47 U.S.C.
309(j)) is amended—
(1) in subparagraph (A), by inserting ‘‘or sub-
paragraph (D)’’ after ‘‘subparagraph (B)’’; and
(2) by adding at the end the following new sub-
paragraph:
‘‘(D) DISPOSITION OF CASH PROCEEDS.—
Cash proceeds attributable to the auction of any
eligible 
frequencies 
described 
in 
section
113(g)(2) of the National Telecommunications
and Information Administration Organization
Act (47 U.S.C. 923(g)(2)) shall be deposited in
the Spectrum Relocation Fund established
under section 118 of such Act, and shall be
available in accordance with that section.’’.
SEC. 204. ESTABLISHMENT OF FUND AND PROCEDURES.
Part B of the National Telecommunications and In-
formation Administration Organization Act is amended by
adding after section 117 (47 U.S.C. 927) the following
new section:
‘‘SEC. 118. SPECTRUM RELOCATION FUND.
‘‘(a) ESTABLISHMENT OF SPECTRUM RELOCATION
FUND.—There is established on the books of the Treasury
a separate fund to be known as the ‘Spectrum Relocation
Fund’ (in this section referred to as the ‘Fund’), which
shall be administered by the Office of Management and
Budget (in this section referred to as ‘OMB’), in consulta-
tion with the NTIA.
‘‘(b) CREDITING OF RECEIPTS.—The Fund shall be
credited 
with 
the 
amounts 
specified 
in 
section
309(j)(8)(D) of the Communications Act of 1934 (47
U.S.C. 309(j)(8)(D)).
‘‘(c) USED
TO
PAY
RELOCATION
COSTS.—The
amounts in the Fund from auctions of eligible frequencies
are authorized to be used to pay relocation costs, as de-
fined in section 113(g)(3) of this Act, of an eligible Fed-
eral entity incurring such costs with respect to relocation
from those frequencies.
‘‘(d) FUND AVAILABILITY.—
‘‘(1) APPROPRIATION.—There are hereby ap-
propriated from the Fund such sums as are required
to pay the relocation costs specified in subsection
(c).
‘‘(2) TRANSFER
CONDITIONS.—None of the
funds provided under this subsection may be trans-
ferred to any eligible Federal entity—
‘‘(A) unless the Director of OMB has de-
termined, in consultation with the NTIA, the
appropriateness of such costs and the timeline
for relocation; and
‘‘(B) until 30 days after the Director of
OMB has submitted to the Committees on Ap-
propriations and Energy and Commerce of the
House of Representatives for approval, to the
Committees on Appropriations and Commerce,
Science, and Transportation of the Senate for
approval, and to the Comptroller General a de-
tailed plan describing specifically how the sums
transferred from the Fund will be used to pay
relocation costs in accordance with such sub-
section and the timeline for such relocation.
Unless disapproved within 30 days, the amounts in
the Fund shall be available immediately. If the plan
is disapproved, the Director may resubmit a revised
plan.
‘‘(iii) such notice shall include, in ad-
dition to such plan, an explanation of need
for such subsequent transfer or transfers;
and
‘‘(iv) the Comptroller General shall,
within 30 days after receiving such plan,
review such plan and submit to such com-
mittees an assessment of the explanation
for the subsequent transfer or transfers.
‘‘(C) Such transferred amounts shall be
credited to the appropriations account of the el-
igible Federal entity which has incurred, or will
incur, such costs, and shall, subject to para-
graph (2), remain available until expended.
‘‘(2) RETRANSFER TO FUND.—An eligible Fed-
eral entity that has received such amounts shall re-
port its expenditures to OMB and shall transfer any
amounts in excess of actual relocation costs back to
the Fund immediately after the NTIA has notified
the Commission that the entity’s relocation is com-
plete, or has determined that such entity has unrea-
sonably failed to complete such relocation in accord-
ance with the timeline required by subsection
(d)(2)(A).’’.
SEC. 205. TELECOMMUNICATIONS DEVELOPMENT FUND.
Section 714(f) of the Communications Act of 1934
(47 U.S.C. 614(f)) is amended to read as follows:
‘‘(f) LENDING AND CREDIT OPERATIONS.—Loans or
other extensions of credit from the Fund shall be made
available to an eligible small business on the basis of—
‘‘(1) the analysis of the business plan of the eli-
gible small business;
‘‘(2) the reasonable availability of collateral to
secure the loan or credit extension;
‘‘(3) the extent to which the loan or credit ex-
tension promotes the purposes of this section; and
‘‘(4) other lending policies as defined by the
Board.’’.
SEC. 206. CONSTRUCTION.
Nothing in this title is intended to modify section
1062(b) of the National Defense Authorization Act for
Fiscal Year 2000 (Public Law 106–65).
SEC. 207. ANNUAL REPORT.
The National Telecommunications and Information
Administration shall submit an annual report to the Com-
mittees on Appropriations and Energy and Commerce of
the House of Representatives, the Committees on Appro-
priations and Commerce, Science, and Transportation of
the Senate, and the Comptroller General on—
(1) the progress made in adhering to the
timelines applicable to relocation from eligible fre-
quencies required under section 118(d)(2)(A) of the
National Telecommunications and Information Ad-
ministration Organization Act, separately stated on
a communication system-by-system basis and on an
auction-by-auction basis; and
(2) with respect to each relocated communica-
tion system and auction, a statement of the estimate
of relocation costs required under section 113(g)(4)
of such Act, the actual relocations costs incurred,
and the amount of such costs paid from the Spec-
trum Relocation Fund.
SEC. 208. PRESERVATION OF AUTHORITY; NTIA REPORT
REQUIRED.
(a) SPECTRUM
MANAGEMENT
AUTHORITY
RE-
TAINED.—Except as provided with respect to the bands
of frequencies identified in section 113(g)(2)(A) of the Na-
tional Telecommunications and Information Administra-
tion Organization Act (47 U.S.C. 923(g)(2)(A)) as amend-
ed by this title, nothing in this title or the amendments
made by this title shall be construed as limiting the Fed-
eral Communications Commission’s authority to allocate
bands of frequencies that are reallocated from Federal use
to non-Federal use for unlicensed, public safety, shared,
or non-commercial use.
(b) NTIA REPORT REQUIRED.—Within 1 year after
the date of enactment of this Act, the Administrator of
the National Telecommunications and Information Ad-
ministration shall submit to the Energy and Commerce
Committee of the House of Representatives and the Com-
merce, Science, and Transportation Committee of the Sen-
ate a report on various policy options to compensate Fed-
eral entities for relocation costs when such entities’ fre-
quencies are allocated by the Commission for unlicensed,
public safety, shared, or non-commercial use.
SEC. 209. COMMERCIAL SPECTRUM LICENSE POLICY RE-
VIEW.
(a) EXAMINATION.—The Comptroller General shall
examine national commercial spectrum license policy as
implemented by the Federal Communications Commission,
and shall report its findings to the Senate Committee on
Commerce, Science, and Transportation and the House of
Representatives Committee on Energy and Commerce
within 270 days.
(b) CONTENT.—The report shall address each of the
following:
(1) An estimate of the respective proportions of
electromagnetic spectrum capacity that have been
assigned 
by 
the 
Federal 
Communications
Commission—
(A) prior to enactment of section 309(j) of
the Communications Act of 1934 (47 U.S.C.
309(j)) providing to the Commission’s competi-
tive bidding authority,
(B) after enactment of that section using
the Commission’s competitive bidding authority,
and
(C) by means other than competitive bid-
ding,
and a description of the classes of licensees assigned
under each method.
(2) The extent to which requiring entities to ob-
tain licenses through competitive bidding places
those entities at a competitive or financial disadvan-
tage to offer services similar to entities that did not
acquire licenses through competitive bidding.
(3) The effect, if any, of the use of competitive
bidding and the resulting diversion of licensees’ fi-
nancial resources on the introduction of new services
including the quality, pace, and scope of the offering
of such services to the public.
(4) The effect, if any, of participation in com-
petitive bidding by incumbent spectrum license hold-
ers as applicants or investors in an applicant, includ-
ing a discussion of any additional effect if such ap-
plicant qualified for bidding credits as a designated
entity.
(5) The effect on existing license holders and
consumers of services offered by these providers of
the Administration’s Spectrum License User Fee
proposal contained in the President’s Budget of the
United States Government for Fiscal Year 2004
(Budget, page 299; Appendix, page 1046), and an
evaluation of whether the enactment of this proposal
could address, either in part or in whole, any pos-
sible competitive disadvantages described in para-
graph (2).
(c) FCC ASSISTANCE.—The Federal Communica-
tions Commission shall provide information and assist-
ance, as necessary, to facilitate the completion of the ex-
amination required by subsection (a).
TITLE III—UNIVERSAL SERVICE
SEC. 301. SHORT TITLE.
This title may be cited as the ‘‘Universal Service
Antideficiency Temporary Suspension Act’’.
SEC. 302. APPLICATION OF CERTAIN TITLE 31 PROVISIONS
TO UNIVERSAL SERVICE FUND.
(a) IN GENERAL.—During the period beginning on
the date of enactment of this Act and ending on December
31, 2005, section 1341 and subchapter II of chapter 15
of title 31, United States Code, do not apply—
(1) to any amount collected or received as Fed-
eral universal service contributions required by sec-
tion 254 of the Communications Act of 1934 (47
U.S.C. 254), including any interest earned on such
contributions; nor
(2) to the expenditure or obligation of amounts
attributable to such contributions for universal serv-
ice support programs established pursuant to that
section.
(b) POST-2005 FULFILLMENT OF PROTECTED OBLI-
GATIONS.—Section 1341 and subchapter II of chapter 15
of title 31, United States Code, do not apply after Decem-
ber 31, 2005, to an expenditure or obligation described
in subsection (a)(2) made or authorized during the period
described in subsection (a).
Passed the House of Representatives November 20,
2004.
Attest:
Clerk.