Auction Reform Act of 2002
PL 107-195 (H.R.4560), enacted 06/19/2002

PUBLIC LAW 107-195-JUNE 19, 2002 
116 STAT. 715 
Public Law 107-195 
107th Congress 
An Act 
To eliminate the deadlines for spectrum auctions of spectrum previously allocated 
June 19, 2002 
to television broadcasting. 
[H.R. 4560] 
Be it enacted by the Senate and House of Representatives of 
the United States of America in Congress assembled, 
Auction Reform 
Act of 2002. 
SECTION 1. SHORT TITLE. 
47 USC 609 note. 
This Act may be cited as the "Auction Reform Act of 2002". 
SEC. 2. FINDINGS. 
47 USC 309 note. 
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 
116 STAT. 716 
PUBLIC LAW 1 0 7 - 1 9 5 - J U N E 19, 2002 
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(i)) 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 3I 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 
PUBLIC LAW 107-195-^UNE 19, 2002 
116 STAT. 717 
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. 
47 USC 309 note. 
(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. 
47 USC 337 note. 
SEC. 4. COMPLIANCE WITH AUCTION AUTHORITY. 
47 USC 309 note. 
The 
Federal 
Communications 
Commission 
shall 
conduct 
rescheduled auctions 31 and 44 prior to the expiration of the auction 
authority under section 309(j)(ll) of the Commiinications Act of 
1934 (47 U.S.C. 309(j)(ll)). 
SEC. 5. PRESERVATION OF BROADCASTER OBLIGATIONS. 
47 USC 309 note. 
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. 
47 USC 337 note. 
(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 
116 STAT. 718 
PUBLIC LAW 107-195—JUNE 19, 2002 
(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). 
Approved June 19, 2002. 
LEGISLATIVE HISTORY—H.R. 4560: 
HOUSE REPORTS: No. 107-443 (Comm. on Energy and Commerce). 
CONGRESSIONAL RECORD, Vol. 148 (2002): 
May 7, considered and passed House. 
June 18, considered and passed Senate, amended. House concurred in Senate 
amendment.