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 paragraph: 
‘‘(15) SPECIAL AUCTION PROVISIONS FOR ELIGI-
BLE FREQUENCIES.—
‘‘(A) SPECIAL
REGULATIONS.—The Com-
mission shall revise the regulations prescribed 
under paragraph (4)(F) of this subsection to pre-
scribe methods by which the total cash proceeds 
from any auction of eligible frequencies described 
in section 113(g)(2) of the National Tele-
communications and Information Administra-
tion 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 Commission 
shall not conclude any auction of eligible fre-
quencies 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 Com-
mission 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 authorization 
has been terminated by the National Tele-
communications and Information Administra-
tion.’’.
(c) DEPOSIT OF PROCEEDS.—Paragraph (8) of section 
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 Infor-
mation Administration Organization Act (47 
U.S.C. 923(g)(2)) shall be deposited in the Spec-
trum Relocation Fund established under section 
118 of such Act, and shall be available in accord-
ance with that section.’’.
SEC. 4. ESTABLISHMENT OF FUND AND PROCEDURES. 
Part B of the National Telecommunications and Infor-
mation 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 consultation 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 defined 
in section 113(g)(3) of this Act, of an eligible Federal entity 
incurring such costs with respect to relocation from those 
frequencies. 
‘‘(d) FUND AVAILABILITY.—
‘‘(1) APPROPRIATION.—There are hereby appro-
priated 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 transferred to 
any eligible Federal entity—
‘‘(A) unless the Director of OMB has deter-
mined, in consultation with the NTIA, the ap-
propriateness of such costs and the timeline for 
relocation; and
‘‘(B) until 30 days after the Director of the 
OMB has submitted to the Committees on Appro-
priations and Energy and Commerce of the 
House of Representatives, the Committees on Ap-
propriations and Commerce, Science, and Trans-
portation of the Senate, and the Comptroller 
General a detailed plan describing how the sums 
transferred from the Fund will be used to pay re-
location costs in accordance with such subsection 
and the timeline for such relocation. 
‘‘(3) REVERSION OF UNUSED FUNDS.—Any auc-
tion proceeds in the Fund that are remaining after 
the payment of the relocation costs that are payable 
from the Fund shall revert to and be deposited in the 
general fund of the Treasury not later than 8 years 
after the date of the deposit of such proceeds to the 
Fund. 
‘‘(e) TRANSFER TO ELIGIBLE FEDERAL ENTITIES.—
‘‘(1) TRANSFER.—
‘‘(A) Amounts made available pursuant to 
subsection (d) shall be transferred to eligible Fed-
eral entities, as defined in section 113(g)(1) of 
this Act. 
‘‘(B) An eligible Federal entity may receive 
more than one such transfer, but if the sum of
the subsequent transfer or transfers exceeds 10 
percent of the original transfer—
‘‘(i) such subsequent transfers are sub-
ject to prior approval by the Director of 
OMB as required by subsection (d)(2)(A); 
‘‘(ii) the notice to the committees con-
taining the plan required by subsection 
(d)(2)(B) shall be not less than 45 days 
prior to the date of the transfer that causes 
such excess above 10 percent; 
‘‘(iii) such notice shall include, in ad-
dition to such plan, an explanation of need 
for such subsequent transfer or transfers; 
and 
‘‘(iv) the Comptroller General shall, 
within 30 days after receiving such plan, 
review such plan and submit to such com-
mittees an assessment of the explanation for 
the subsequent transfer or transfers. 
‘‘(C) Such transferred amounts shall be 
credited to the appropriations account of the eli-
gible Federal entity which has incurred, or will 
incur, such costs, and shall, subject to paragraph 
(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 complete, 
or has determined that such entity has unreasonably 
failed to complete such relocation in accordance with 
the timeline required by subsection (d)(2)(A).’’. 
SEC. 5. TELECOMMUNICATIONS DEVELOPMENT FUND. 
Section 714(f) of the Communications Act of 1934 (47 
U.S.C. 614(f)) is amended to read as follows: 
‘‘(f) LENDING AND CREDIT OPERATIONS.—Loans or 
other extensions of credit from the Fund shall be made 
available to an eligible small business on the basis of—
‘‘(1) the analysis of the business plan of the eligi-
ble small business; 
‘‘(2) the reasonable availability of collateral to 
secure the loan or credit extension; 
‘‘(3) the extent to which the loan or credit exten-
sion promotes the purposes of this section; and 
‘‘(4) other lending policies as defined by the 
Board.’’.
SEC. 6. CONSTRUCTION. 
Nothing in this Act is intended to modify section 
1062(b) of the National Defense Authorization Act for Fis-
cal Year 2000 (Public Law 106–65). 
SEC. 7. ANNUAL REPORT. 
The National Telecommunications and Information 
Administration shall submit an annual report to the Com-
mittees on Appropriations and Energy and Commerce of 
the House of Representatives, the Committees on Appro-
priations and Commerce, Science, and Transportation of 
the Senate, and the Comptroller General on—
(1) the progress made in adhering to the 
timelines applicable to relocation from eligible fre-
quencies required under section 118(d)(2)(A) of the 
National Telecommunications and Information Ad-
ministration Organization Act, separately stated on a 
communication system-by-system basis and on an 
auction-by-auction basis; and 
(2) with respect to each relocated communication 
system and auction, a statement of the estimate of re-
location costs required under section 113(g)(4) of such 
Act, the actual relocations costs incurred, and the 
amount of such costs paid from the Spectrum Reloca-
tion Fund.
SEC. 8. PRESERVATION OF AUTHORITY; NTIA REPORT RE-
QUIRED. 
(a) 
SPECTRUM
MANAGEMENT
AUTHORITY
RE-
TAINED.—Except as provided with respect to the bands of 
frequencies identified in section 113(g)(2)(A) of the Na-
tional Telecommunications and Information Administra-
tion Organization Act (47 U.S.C. 923(g)(2)(A)) as amended 
by this Act, nothing in this Act or the amendments made 
by this Act shall be construed as limiting the Federal Com-
munications 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 Adminis-
tration shall submit to the Energy and Commerce Com-
mittee of the House of Representatives and the Commerce, 
Science, and Transportation Committee of the Senate a re-
port on various policy options to compensate Federal enti-
ties for relocation costs when such entities’ frequencies are 
allocated by the Commission for unlicensed, public safety, 
shared, or non-commercial use.
Union Calendar No. 71
108TH CONGRESS 
1ST SESSION 
H. R. 1320
[Report No. 108–137] 
A BILL 
To amend the National Telecommunications and 
Information Administration Organization Act to 
facilitate the reallocation of spectrum from gov-
ernmental to commercial users. 
JUNE 3, 2003
Reported with an amendment, committed to the Com-
mittee of the Whole House on the State of the Union, 
and ordered to be printed