Title: SMART Act
Policy area: Science, Technology, Communications

Summary:
Spectrum Management And Reallocation for Taxpayers Act or the SMART Act
This bill authorizes the Federal Communications Commission (FCC) to conduct a public auction of mid-band spectrum and places requirements on how the FCC must use the proceeds from such an auction.
Specifically, the bill authorizes the FCC to identify, clear, and auction mid-band spectrum. The bill also establishes a (1) C-Band Reimbursement and Implementation Fund to reimburse costs and incentivize license holders to reduce their usage of spectrum so that it may be auctioned, (2) Digital Divide Trust Fund for deployment of broadband infrastructure in unserved and underserved areas, and (3) Next Generation 9–1–1 Trust Fund for deployment of upgraded 9–1–1 services that use a digital or internet protocol-based system.
The FCC must use the proceeds from a spectrum auction authorized under this bill to (1) reimburse amounts borrowed from the general fund of the Treasury that were deposited into the C-Band Reimbursement and Implementation Fund, (2) deposit a specified amount into the general fund of the Treasury for the purpose of deficit reduction, and (3) deposit all remaining amounts in the Digital Divide Trust Fund and the Next Generation 9–1–1 Trust Fund.
Additionally, the bill prohibits an entity that poses a national security risk from participating in a spectrum auction.

[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[S. 3246 Introduced in Senate (IS)]

<DOC>






116th CONGRESS
  2d Session
                                S. 3246

     To amend the Communications Act of 1934 to direct the Federal 
 Communications Commission to conduct a public auction of the C-band, 
                        and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                            January 28, 2020

Mr. Kennedy (for himself, Mr. Schatz, and Ms. Cantwell) introduced the 
 following bill; which was read twice and referred to the Committee on 
                 Commerce, Science, and Transportation

_______________________________________________________________________

                                 A BILL


 
     To amend the Communications Act of 1934 to direct the Federal 
 Communications Commission to conduct a public auction of the C-band, 
                        and for other purposes.

    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 ``Spectrum Management And Reallocation 
for Taxpayers Act'' or the ``SMART Act''.

SEC. 2. DEFINITIONS.

    In this Act:
            (1) C-band reimbursement and implementation fund; c-band 
        fund.--The term ``C-Band Reimbursement and Implementation 
        Fund'' or ``C-Band Fund'' means the fund established under 
        section 5(a).
            (2) Commission.--The term ``Commission'' means the Federal 
        Communications Commission.
            (3) Digital divide trust fund.--The term ``Digital Divide 
        Trust Fund'' means the trust fund established under section 
        4(a)(1)(A).
            (4) Native americans.--The term ``Native Americans'' has 
        the meaning given the term in section 736(g) of the Public 
        Health Service Act (42 U.S.C. 293(g)).
            (5) Next generation 9-1-1 trust fund.--The term ``Next 
        Generation 9-1-1 Trust Fund'' means the trust fund established 
        under section 4(a)(1)(B).
            (6) Trust land.--The term ``trust land'' has the meaning 
        given the term in section 3765 of title 38, United States Code.

SEC. 3. PUBLIC AUCTION OF C-BAND SPECTRUM.

    (a) In General.--Not later than 1 year after issuing rules for 
reallocating a portion of the electromagnetic spectrum described in 
subsection (b) through a public auction, if the Commission issues such 
rules during the year 2020, the Commission shall--
            (1) identify 300 megahertz of that spectrum for 
        reallocation consistent with this section;
            (2) clear the spectrum identified under paragraph (1) 
        consistent with subsection (d);
            (3) reallocate the spectrum identified under paragraph (1) 
        for terrestrial broadband use, reserving 20 megahertz of the 
        spectrum as a guard band; and
            (4) notwithstanding paragraph (15)(A) of section 309(j) of 
        the Communications Act of 1934 (47 U.S.C. 309(j)), commence a 
        system of competitive bidding under that section to grant new 
        initial licenses for the use of the spectrum identified under 
        paragraph (1) of this subsection, subject to--
                    (A) flexible-use service rules; and
                    (B) the requirement to protect incumbent uses of 
                the spectrum not otherwise cleared under paragraph (2) 
                of this subsection from harmful interference.
    (b) Electromagnetic Spectrum Described.--The electromagnetic 
spectrum described in this subsection is the spectrum between 3700 
megahertz and 4200 megahertz, inclusive.
    (c) Auction Proceeds.--Section 309(j)(8) of the Communications Act 
of 1934 (47 U.S.C. 309(j)(8)) is amended--
            (1) in subparagraph (A), by striking ``and (G)'' and 
        inserting ``(G), and (H)'';
            (2) in subparagraph (C)(i), by striking ``and (G)'' and 
        inserting ``(G), and (H)''; and
            (3) by adding at the end the following:
                    ``(H) Certain proceeds designated for c-band 
                reallocation, broadband infrastructure deployment, and 
                next generation 9-1-1 services.--Notwithstanding 
                subparagraph (A) and except as provided in subparagraph 
                (B), of the proceeds (including deposits and upfront 
                payments from successful bidders) from the use of a 
                system of competitive bidding under this subsection 
                pursuant to section 3 of the Spectrum Management And 
                Reallocation for Taxpayers Act--
                            ``(i) the Commission shall use such amounts 
                        as are necessary to reimburse the general fund 
                        of the Treasury for any amounts borrowed under 
                        section 5(b) of that Act;
                            ``(ii) after compliance with clause (i) of 
                        this subparagraph, the Commission shall deposit 
                        the next $5,000,000,000 in the general fund of 
                        the Treasury for the sole purpose of deficit 
                        reduction; and
                            ``(iii) after compliance with clauses (i) 
                        and (ii) of this subparagraph, the Commission 
                        shall deposit all amounts remaining in 
                        accordance with section 4(b) of that Act.''.
    (d) Clearing of C-Band Spectrum for Auction.--
            (1) Licenses.--
                    (A) Issuance.--The Commission shall issue any new 
                licenses or license modifications required to clear 
                electromagnetic spectrum under subsection (a)(2) as 
                expeditiously as possible after the date of enactment 
                of this Act.
                    (B) Protests.--The right of a licensee to protest a 
                proposed order of modification of its license under 
                section 316 of the Communications Act of 1934 (47 
                U.S.C. 316) shall not apply in the case of a 
                modification made under subparagraph (A) of this 
                paragraph.
            (2) Protection of c-band users.--The Commission shall clear 
        electromagnetic spectrum under subsection (a)(2) in a manner 
        that ensures that persons or entities that used the spectrum 
        before the clearing of the spectrum receive--
                    (A) service that is equivalent to or better than 
                the service received before the clearing of the 
                spectrum; and
                    (B) service at a level described in subparagraph 
                (A) continuously throughout the clearing of the 
                spectrum.
    (e) Additional Protections.--In promulgating rules regarding the 
use of spectrum in the covered band, the Commission shall ensure that 
aviation safety and other safety-of-life uses operating in the covered 
band or in adjacent spectrum bands are protected from harmful 
interference.

SEC. 4. TRUST FUNDS.

    (a) Establishment.--
            (1) In general.--There is established in the Treasury of 
        the United States--
                    (A) a trust fund to be known as the ``Digital 
                Divide Trust Fund''; and
                    (B) a trust fund to be known as the ``Next 
                Generation 9-1-1 Trust Fund''.
            (2) Availability.--Amounts deposited in the trust funds 
        established under paragraph (1) shall remain available until 
        expended.
    (b) Deposit of Funds.--With respect to the amounts described in 
subparagraph (H)(i)(II) of section 309(j)(8) of the Communications Act 
of 1934 (47 U.S.C. 309(j)(8)), as added by section 3 of this Act, the 
Commission shall deposit--
            (1) one-third of those amounts, but not to exceed 
        $12,500,000,000, in the Next Generation 9-1-1 Trust Fund; and
            (2) any remaining amounts in the Digital Divide Trust Fund.
    (c) Use of Digital Divide Trust Fund.--
            (1) In general.--The Commission shall use the amounts 
        deposited in the Digital Divide Trust Fund for the deployment 
        of--
                    (A) wireless broadband infrastructure in areas that 
                the Commission has determined are underserved or 
                unserved with respect to wireless broadband internet 
                access service, including areas located on trust land 
                or used to deliver services to Native Americans;
                    (B) wired broadband infrastructure in areas that 
                the Commission has determined are underserved or 
                unserved with respect to wired broadband internet 
                access service, including areas located on trust land 
                or used to deliver services to Native Americans; and
                    (C) broadband infrastructure to support other 
                technologies, including telehealth, telemedicine, e-
                government, and educational opportunities at home.
            (2) Limitations.--
                    (A) Rulemaking required.--
                            (i) Timing.--Not earlier than January 1, 
                        2023, the Commission shall conduct a rulemaking 
                        to determine how to implement paragraph (1).
                            (ii) Obligation of amounts.--The Commission 
                        may not obligate any amounts from the Digital 
                        Divide Trust Fund under paragraph (1) until the 
                        Commission has completed the rulemaking under 
                        clause (i) of this subparagraph.
                    (B) Relation to universal service programs.--The 
                amounts provided under paragraph (1) are not intended 
                to supplant, or be commingled with, the funds collected 
                by the Commission and distributed through any program 
                established under section 254 of the Communications Act 
                of 1934 (47 U.S.C. 254).
    (d) Use of Next Generation 9-1-1 Trust Fund.--The National 911 
Program overseen by the National Telecommunications and Information 
Administration and the National Highway Traffic Safety Administration 
shall use the amounts deposited in the Next Generation 9-1-1 Trust Fund 
for the deployment of Next Generation 9-1-1 services.

SEC. 5. C-BAND REIMBURSEMENT AND IMPLEMENTATION FUND.

    (a) Establishment.--There is established in the Treasury of the 
United States a fund to be known as the ``C-Band Reimbursement and 
Implementation Fund'' (referred to in this section as the ``C-Band 
Fund'').
    (b) Borrowing Authority.--The Commission may borrow from the 
Treasury of the United States an amount not to exceed $6,000,000,000 to 
use for payments required under subsections (d) and (e).
    (c) Deposit of Funds.--Any amounts borrowed under subsection (b) 
shall be deposited in the C-Band Fund.
    (d) Payment of Costs.--The Commission shall use the amounts in the 
C-Band Fund to reimburse costs reasonably incurred by--
            (1) incumbent holders of licenses or market access rights 
        for use of the electromagnetic spectrum identified under 
        paragraph (1) of section 3(a), to reduce the usage of that 
        spectrum by those entities in accordance with that section;
            (2) licensees or registrants of an earth station receiving 
        signals over the spectrum identified under section 3(a)(1); and
            (3) the relocation of other incumbent uses of the spectrum 
        identified under section 3(a)(1).
    (e) Implementation.--The Commission shall use not more than 
$1,000,000,000 of the amounts in the C-Band Fund for payments to 
incentivize incumbent holders of licenses or market access rights for 
use of the electromagnetic spectrum identified under paragraph (1) of 
section 3(a) to reduce their usage of that spectrum in accordance with 
that section in a more timely fashion.
    (f) Transfer of Unused Funds.--If any amounts remain in the C-Band 
Fund after the date that is 3 years after the completion of the system 
of competitive bidding conducted under section 3, the Secretary of the 
Treasury shall transfer those amounts to the Digital Divide Trust Fund.

SEC. 6. SPECTRUM AUCTION PARTICIPATION.

    (a) In General.--Section 309(j) of the Communications Act of 1934 
(47 U.S.C. 309(j)) is amended--
            (1) in paragraph (17)(A), in the matter preceding clause 
        (i), by striking ``Notwithstanding'' and inserting ``Subject to 
        paragraph (19) and notwithstanding''; and
            (2) by adding at the end the following:
            ``(19) Prohibition on auction participation by entities 
        posing a national security risk.--
                    ``(A) In general.--An entity posing a national 
                security risk may not participate in any system of 
                competitive bidding under this subsection.
                    ``(B) Definition.--
                            ``(i) In general.--For purposes of this 
                        paragraph, the term `entity posing a national 
                        security risk' means an entity that the 
                        Commission determines poses a national security 
                        risk.
                            ``(ii) Determination.--In determining which 
                        entities qualify as entities posing a national 
                        security risk under this paragraph, the 
                        Commission shall rely solely upon a 
                        determination by--
                                    ``(I) an appropriate national 
                                security agency;
                                    ``(II) an interagency body that 
                                includes appropriate national security 
                                expertise, including the Federal 
                                Acquisition Security Council 
                                established under section 1322 of title 
                                41, United States Code;
                                    ``(III) Congress; or
                                    ``(IV) the Secretary of Commerce 
                                under the program established under 
                                Executive Order 13873 (84 Fed. Reg. 
                                22689; relating to securing information 
                                and communications technology and 
                                services supply chain) or by an agency 
                                under any successor program.''.
    (b) Implementation.--Not later than 1 year after the date of 
enactment of this Act, the Commission shall take all steps necessary to 
implement the amendments made by subsection (a).
                                 <all>