H. R. 4560
One Hundred Seventh Congress
of the
United States of America
AT THE SECOND SESSION
Begun and held at the City of Washington on Wednesday,
the twenty-third day of January, two thousand and two
An Act
To eliminate the deadlines for spectrum auctions of spectrum previously allocated
to television broadcasting.
Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ‘‘Auction Reform Act of 2002’’.
SEC. 2. FINDINGS.
Congress finds the following:
(1) Circumstances in the telecommunications market have
changed dramatically since the auctioning of spectrum in the
700 megahertz band was originally mandated by Congress in
1997, raising serious questions as to whether the original dead-
lines, or the subsequent revision of the deadlines, are consistent
with sound telecommunications policy and spectrum manage-
ment principles.
(2) No comprehensive plan yet exists for allocating addi-
tional spectrum for third-generation wireless and other
advanced communications services. The Federal Communica-
tions Commission should have the flexibility to auction fre-
quencies in the 700 megahertz band for such purposes.
(3) The study being conducted by the National Tele-
communications and Information Administration in consulta-
tion with the Department of Defense to determine whether
the Department of Defense can share or relinquish additional
spectrum for third generation wireless and other advanced
communications services will not be completed until after the
June 19th auction date for the upper 700 megahertz band,
and long after the applications must be filed to participate
in the auction, thereby creating further uncertainty as to
whether the frequencies in the 700 megahertz band will be
put to their highest and best use for the benefit of consumers.
(4) The Federal Communications Commission is also in
the process of determining how to resolve the interference
problems that exist in the 800 megahertz band, especially for
public safety. One option being considered for the 800 mega-
hertz band would involve the 700 megahertz band. The
Commission should not hold the 700 megahertz auction before
the 800 megahertz interference issues are resolved or a tenable
plan has been conceived.
(5) The 700 megahertz band is currently occupied by tele-
vision broadcasters, and will be so until the transfer to digital
television is completed. This situation creates a tremendous
H. R. 4560—2
amount of uncertainty concerning when the spectrum will be
available and reduces the value placed on the spectrum by
potential bidders. The encumbrance of the 700 megahertz band
reduces both the amount of money that the auction would
be likely to produce and the probability that the spectrum
would be purchased by the entities that valued the spectrum
the most and would put the spectrum to its most productive
use.
(6) The Commission’s rules governing voluntary mecha-
nisms for vacating the 700 megahertz band by broadcast
stations—
(A) produced no certainty that the band would be avail-
able for advanced mobile communications services, public
safety operations, or other wireless services any earlier
than the existing statutory framework provides; and
(B) should advance the transition of digital television
and must not result in the unjust enrichment of any incum-
bent licensee.
SEC. 3. ELIMINATION OF STATUTORY DEADLINES FOR SPECTRUM AUC-
TIONS.
(a) FCC TO DETERMINE TIMING OF AUCTIONS.—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:
‘‘(15) COMMISSION TO DETERMINE TIMING OF AUCTIONS.—
‘‘(A) COMMISSION
AUTHORITY.—Subject to the provi-
sions of this subsection (including paragraph (11)), but
notwithstanding any other provision of law, the Commis-
sion shall determine the timing of and deadlines for the
conduct of competitive bidding under this subsection,
including the timing of and deadlines for qualifying for
bidding; conducting auctions; collecting, depositing, and
reporting revenues; and completing licensing processes and
assigning licenses.
‘‘(B) TERMINATION OF PORTIONS OF AUCTIONS 31 AND
44.—Except as provided in subparagraph (C), the Commis-
sion shall not commence or conduct auctions 31 and 44
on June 19, 2002, as specified in the public notices of
March 19, 2002, and March 20, 2002 (DA 02–659 and
DA 02–563).
‘‘(C) EXCEPTION.—
‘‘(i) BLOCKS
EXCEPTED.—Subparagraph (B) shall
not apply to the auction of—
‘‘(I) the C-block of licenses on the bands of
frequencies located at 710–716 megahertz, and
740–746 megahertz; or
‘‘(II) the D-block of licenses on the bands of
frequencies located at 716–722 megahertz.
‘‘(ii) ELIGIBLE BIDDERS.—The entities that shall be
eligible to bid in the auction of the C-block and D-
block licenses described in clause (i) shall be those
entities that were qualified entities, and that submitted
applications to participate in auction 44, by May 8,
2002, as part of the original auction 44 short form
filing deadline.
‘‘(iii) AUCTION DEADLINES FOR EXCEPTED BLOCKS.—
Notwithstanding subparagraph (B), the auction of the
H. R. 4560—3
C-block and D-block licenses described in clause (i)
shall be commenced no earlier than August 19, 2002,
and no later than September 19, 2002, and the proceeds
of such auction shall be deposited in accordance with
paragraph (8) not later than December 31, 2002.
‘‘(iv) REPORT.—Within one year after the date of
enactment of this paragraph, the Commission shall
submit a report to Congress—
‘‘(I) specifying when the Commission intends
to reschedule auctions 31 and 44 (other than the
blocks excepted by clause (i)); and
‘‘(II) describing the progress made by the
Commission in the digital television transition and
in the assignment and allocation of additional spec-
trum for advanced mobile communications services
that warrants the scheduling of such auctions.
‘‘(D) RETURN OF PAYMENTS.—Within one month after
the date of enactment of this paragraph, the Commission
shall return to the bidders for licenses in the A-block,
B-block, and E-block of auction 44 the full amount of all
upfront payments made by such bidders for such licenses.’’.
(b) CONFORMING AMENDMENTS.—
(1) COMMUNICATIONS ACT OF 1934.—Section 309(j)(14)(C)(ii)
of the Communications Act of 1934 (47 U.S.C. 309(j)(14)(C)(ii))
is amended by striking the second sentence.
(2) BALANCED BUDGET ACT OF 1997.—Section 3007 of the
Balanced Budget Act of 1997 (111 Stat. 269) is repealed.
(3) CONSOLIDATED
APPROPRIATIONS
ACT.—Paragraphs (2)
and (3) of section 213(a) of H.R. 3425 of the 106th Congress,
as enacted into law by section 1000(a)(5) of An Act making
consolidated appropriations for the fiscal year ending Sep-
tember 30, 2000, and for other purposes (Public Law 106–
113; 113 Stat. 1501A–295), are repealed.
SEC. 4. COMPLIANCE WITH AUCTION AUTHORITY.
The Federal Communications Commission shall conduct
rescheduled auctions 31 and 44 prior to the expiration of the auction
authority under section 309(j)(11) of the Communications Act of
1934 (47 U.S.C. 309(j)(11)).
SEC. 5. PRESERVATION OF BROADCASTER OBLIGATIONS.
Nothing in this Act shall be construed to relieve television
broadcast station licensees of the obligation to complete the digital
television service conversion as required by section 309(j)(14) of
the Communications Act of 1934 (47 U.S.C. 309(j)(14)).
SEC. 6. INTERFERENCE PROTECTION.
(a) INTERFERENCE WAIVERS.—In granting a request by a tele-
vision broadcast station licensee assigned to any of channels 52–
69 to utilize any channel of channels 2–51 that is assigned for
digital broadcasting in order to continue analog broadcasting during
the transition to digital broadcasting, the Federal Communications
Commission may not, either at the time of the grant or thereafter,
waive or otherwise reduce—
(1) the spacing requirements provided for analog broad-
casting licensees within channels 2–51 as required by section
73.610 of the Commission’s rules (and the table contained
therein) (47 CFR 73.610), or
H. R. 4560—4
(2) the interference standards provided for digital broad-
casting licensees within channels 2–51 as required by sections
73.622 and 73.623 of such rules (47 CFR 73.622, 73.623),
if such waiver or reduction will result in any degradation in or
loss of service, or an increased level of interference, to any television
household except as the Commission’s rules would otherwise
expressly permit, exclusive of any waivers previously granted.
(b) EXCEPTION FOR PUBLIC SAFETY CHANNEL CLEARING.—The
restrictions in subsection (a) shall not apply to a station licensee
that is seeking authority (either by waiver or otherwise) to vacate
the frequencies that constitute television channel 63, 64, 68, or
69 in order to make such frequencies available for public safety
purposes pursuant to the provisions of section 337 of the Commu-
nications Act of 1934 (47 U.S.C. 337).
Speaker of the House of Representatives.
Vice President of the United States and
President of the Senate.