[United States Statutes at Large, Volume 118, 108th Congress, 2nd Session]
[From the U.S. Government Printing Office, www.gpo.gov]

118 STAT. 3986

Public Law 108-494
108th Congress

An Act


 
To amend the National Telecommunications and Information Administration
Organization Act to facilitate the reallocation 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 enhanced 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
activated system; and to provide that funds received as universal
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. NOTE: Dec. 23, 2004 -  [H.R. 5419]

Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,

TITLE I--E-911 NOTE: Ensuring Needed Help Arrives Near Callers
Employing 911 Act of 2004.

SEC. 101. SHORT TITLE. NOTE: 47 USC 901 note.

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. NOTE: 47 USC 942 note.

The Congress finds that--
(1) for the sake of our Nation's homeland security and
public safety, a universal emergency telephone number (911) that
is enhanced with the most modern and state-of-the-art
telecommunications capabilities possible should be available to
all citizens in all regions of the Nation;
(2) enhanced emergency communications require Federal,
State, and local government resources and coordination;
(3) any funds that are collected from fees imposed 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 cooperation with State and local
governments and with the numerous organizations dedicated to
delivering emergency communications services.

SEC. 103. PURPOSES. NOTE: 47 USC 942 note.

The purposes of this title are--
(1) to coordinate 911 services and E-911 services, at the
Federal, State, and local levels; and

[[Page 3987]]
118 STAT. 3987

(2) to ensure that funds collected on telecommunications
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. NOTE: 47 USC 942.

``(a) E-911 Implementation Coordination Office.--
``(1) Establishment.--The Assistant Secretary and the
Administrator of the National Highway Traffic Safety
Administration shall--
``(A) establish a joint program to facilitate
coordination and communication between Federal, State,
and local emergency communications systems, emergency
personnel, public safety organizations,
telecommunications carriers, and telecommunications
equipment manufacturers and vendors involved in the
implementation of E-911 services; and
``(B) create an E-911 Implementation Coordination
Office to implement the provisions of this section.
``(2) Management plan.--The Assistant Secretary and the
Administrator shall jointly develop a management plan for the
program established under this section. Such plan shall include
the organizational structure and funding profiles for the 5-year
duration of the program. NOTE: Deadline. The Assistant
Secretary and the Administrator shall, within 90 days after the
date of enactment of this Act, submit the management plan to the
Committees on Energy and Commerce and Appropriations of the
House of Representatives 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 coordinators
designated in accordance with subsection (b)(3)(A)(ii),
to improve such coordination and communication;
``(B) develop, collect, and disseminate information
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 required 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 coordination and communication with respect to
the implementation of E-911 services.

``(b) Phase II E-911 Implementation Grants.--
``(1) Matching grants.--The Assistant Secretary and the
Administrator, after consultation with the Secretary of Homeland
Security and the Chairman of the Federal Communications

[[Page 3988]]
118 STAT. 3988

Commission, and acting through the Office, shall provide grants
to eligible entities for the implementation and operation 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) located 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 services or manage emergency
communications operations;
``(iii) has established a plan for the
coordination and implementation of E-911 services;
and
``(iv) has integrated telecommunications
services involved in the implementation and
delivery of phase II E-911 services; 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 complied with clause (ii) of
such subparagraph.
``(4) NOTE: Regulations. Deadlines.  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 comment 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 financed 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

[[Page 3989]]
118 STAT. 3989

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 condition 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 applicant,
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 Office.
``(4) Penalty for providing false information.--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 subsection (b)
during the time that the certification was not valid;
and
``(C) not be eligible to receive any subsequent
grants under subsection (b).

``(d) Authorization; Termination.--
``(1) Authorization.--There are authorized to be
appropriated to the Department of Transportation, for the
purposes of grants under the joint program operated under this
section with the Department 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 administrative 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 `Administrator' means the
Administrator of the National Highway Traffic Safety
Administration.
``(3) Eligible entity.--
``(A) In general.--The term `eligible entity' 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 includes public
authorities, boards, commissions, and similar bodies
created by one or more eligible entities described in
subparagraph (A) to provide E-911 services.
``(C) Exception.--Such term does not include any
entity that has failed to submit the most recently
required certification under subsection (c) within 30
days after the date on which such certification is due.
``(4) E-911 services.--The term `E-911 services' means both
phase I and phase II enhanced 911 services, as described in
section 20.18 of the Commission's regulations (47 C.F.R. 20.18),
as in effect on the date of enactment of the ENHANCE

[[Page 3990]]
118 STAT. 3990

911 Act of 2004, or as subsequently revised by the Federal
Communications Commission.
``(5) Phase ii e-911 services.--The term `phase II E-911
services' means only phase II enhanced 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
Communications 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) NOTE: Deadline. In General.--Within 60 days after the date
of enactment of this Act, the Comptroller General shall initiate 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 dedicated to improve emergency
communications services, including 911 services or enhanced 911
services, or related to emergency communications services
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
Transportation and the House of Representatives Committee on Energy and
Commerce setting forth the findings, conclusions, and recommendations,
if any, of the study, including--
(1) the identity of each State or political subdivision that
imposes such taxes, fees, or other charges; and
(2) the amount of revenues obligated or expended 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 submit 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;

[[Page 3991]]
118 STAT. 3991

(7) actions the Commission has taken to reduce the amount of
time a waiver request remains pending; 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 CARRIERS.

(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
Commission's rules (47 C.F.R. 20.18(g)(1)(v)) within 100 days after the
Commission receives the petition. The Commission shall grant the waiver
of compliance with the requirements 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 section 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 NOTE: Commercial Spectrum Enhancement
Act.

SEC. 201. SHORT TITLE. NOTE: 47 USC 901 note.

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 Federal entity that
operates a Federal Government station assigned to a band of
frequencies specified in paragraph (2) and that incurs
relocation costs because 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 purposes of this paragraph, Federal
power agencies exempted under subsection (c)(4) that choose to
relocate 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 reallocated from
Federal use to non-Federal use after January 1, 2003,
that is assigned by competitive bidding pursuant to
section 309(j) of the Communications Act of 1934 (47
U.S.C. 309(j)), except for bands of frequencies
previously identified by

[[Page 3992]]
118 STAT. 3992

the National Telecommunications 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,
regardless of whether that capability is achieved by relocating
to a new frequency assignment or by utilizing an alternative
technology. Such costs include--
``(A) the costs of any modification or replacement
of equipment, software, facilities, operating manuals,
training costs, or regulations that are attributable to
relocation;
``(B) the costs of all engineering, equipment,
software, site acquisition and construction costs, as
well as any legitimate and prudent transaction expense,
including outside consultants, and reasonable additional
costs incurred by the Federal entity that are
attributable to relocation, including increased
recurring costs associated with the replacement
facilities;
``(C) the costs of engineering studies, economic
analyses, or other expenses reasonably incurred in
calculating the estimated relocation costs that are
provided to the Commission pursuant to paragraph (4) of
this subsection;
``(D) the one-time costs of any modification of
equipment reasonably necessary to accommodate commercial
use of such frequencies prior to the termination of the
Federal entity's primary allocation or protected status,
when the eligible frequencies as defined in paragraph
(2) of this subsection are made available for private
sector uses by competitive bidding and a Federal entity
retains primary allocation or protected status in those
frequencies for a period of time after the completion of
the competitive bidding process; and
``(E) the costs associated with the accelerated
replacement of systems and equipment if such
acceleration is necessary to ensure the timely
relocation of systems to a new frequency assignment.
``(4) Notice to commission of estimated relocation costs.--
``(A) The Commission shall notify the NTIA at least
18 months prior to the commencement of any auction of
eligible frequencies defined in paragraph (2). At least
6 months prior to the commencement of any such auction,
the NTIA, on behalf of the Federal entities and after
review by the Office of Management and Budget, shall
notify the Commission of estimated relocation costs and
timelines for such relocation.
``(B) Upon timely request of a Federal entity, the
NTIA shall provide such entity with information
regarding an alternative frequency assignment or
assignments to which their radiocommunications
operations could be relocated 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 consistent with
national security considerations, the NTIA shall provide
the information required by subparagraphs (A) and (B)

[[Page 3993]]
118 STAT. 3993

by the geographic location of the Federal entities'
facilities 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 Commission under paragraph (4)(A),
submit to Committees on Appropriations 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 copy
of such estimate and the timelines for
relocation. NOTE: Deadline. Unless disapproved within 30
days, the estimate shall be approved. If disapproved, the NTIA
may resubmit a revised initial 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 paragraph (2) to frequencies or facilities of
comparable capability. NOTE: Notification. Upon a finding by
the NTIA that a Federal entity has achieved comparable
capability of systems 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 entity'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 subparagraph (D);
(2) by striking the period at the end of subparagraph (E)
and inserting ``; and''; and
(3) by adding at the end the following new subparagraph:
``(F) for any auction of eligible frequencies
described in section 113(g)(2) of the National
Telecommunications and Information Administration
Organization Act (47 U.S.C. 923(g)(2)), the recovery of
110 percent of estimated relocation costs as provided to
the Commission pursuant 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 eligible
frequencies.--
``(A) Special regulations.--The Commission shall
revise the regulations prescribed under paragraph (4)(F)
of this subsection to prescribe methods by which the
total cash proceeds from any auction of 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 at least equal 110 percent of the total estimated
relocation costs provided to the Commission pursuant to
section 113(g)(4) of such Act.

[[Page 3994]]
118 STAT. 3994

``(B) Conclusion of auctions contingent on minimum
proceeds.--The Commission 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. NOTE: Deadline. 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 deauthorization.--
In any auction conducted under the regulations required
by subparagraph (A), the Commission may grant a license
assigned 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 licensee cannot cause
harmful interference to such Federal entity until such
entity's authorization has been terminated by the
National Telecommunications and Information
Administration.''.

(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 subparagraph
(D)'' after ``subparagraph (B)''; and
(2) by adding at the end the following new subparagraph:
``(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 Information
Administration Organization Act is amended by adding after section 117
(47 U.S.C. 927) the following new section:

``SEC. 118. SPECTRUM RELOCATION FUND. NOTE: 47 USC 928.

``(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.--

[[Page 3995]]
118 STAT. 3995

``(1) Appropriation.--There are hereby appropriated 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 determined, 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 Appropriations 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 detailed plan
describing specifically how the sums transferred from
the Fund will be used to pay relocation costs in
accordance with such subsection and the timeline for
such relocation.
Unless NOTE: Deadline. 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.
``(3) NOTE: Deadline. Reversion of unused funds.--Any
auction 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 Federal 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 subject to
prior approval by the Director of OMB as required
by subsection (d)(2)(A);
``(ii) NOTE: Deadline. the notice to the
committees containing 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 addition
to such plan, an explanation of need for such
subsequent transfer or transfers; and
``(iv) NOTE: Deadline. the Comptroller
General shall, within 30 days after receiving such
plan, review such plan and submit to such
committees an assessment of the explanation for
the subsequent transfer or transfers.
``(C) Such transferred amounts shall be credited to
the appropriations account of the eligible Federal
entity which has incurred, or will incur, such costs,
and shall, subject to paragraph (2), remain available
until expended.
``(2) NOTE: Reports. Retransfer to fund.--An eligible
Federal entity that has received such amounts shall report its
expenditures to OMB and shall transfer any amounts in excess of
actual relocation costs back to the Fund immediately after the
NTIA has

[[Page 3996]]
118 STAT. 3996

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. 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 eligible
small business;
``(2) the reasonable availability of collateral to secure
the loan or credit extension;
``(3) the extent to which the loan or credit extension
promotes the purposes of this section; and
``(4) other lending policies as defined by the Board.''.

SEC. 206. CONSTRUCTION. NOTE: 47 USC 921 note.

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. NOTE: 47 USC 928 note.

The National Telecommunications and Information Administration shall
submit an annual report to the Committees on Appropriations and Energy
and Commerce of the House of Representatives, the Committees on
Appropriations 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 frequencies required
under section 118(d)(2)(A) of the National Telecommunications
and Information Administration 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 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 Spectrum Relocation Fund.

SEC. 208. PRESERVATION OF AUTHORITY; NTIA REPORT REQUIRED.

(a) NOTE: 47 USC 923 note. Spectrum Management Authority
Retained.--Except as provided with respect to the bands of frequencies
identified in section 113(g)(2)(A) of the National Telecommunications
and Information Administration Organization Act (47 U.S.C. 923(g)(2)(A))
as amended by this title, nothing in this title or the amendments made
by this title shall be construed as limiting the Federal 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 Administration shall submit to the Energy and Commerce
Committee of the House of Representatives and the Commerce, Science, and
Transportation Committee

[[Page 3997]]
118 STAT. 3997

of the Senate a report on various policy options to compensate Federal
entities for relocation costs when such entities' frequencies are
allocated by the Commission for unlicensed, public safety, shared, or
non-commercial use.

SEC. 209. COMMERCIAL SPECTRUM LICENSE POLICY REVIEW.

(a) NOTE: Reports. Deadline.  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 competitive bidding authority,
(B) after enactment of that section using the
Commission's competitive bidding authority, and
(C) by means other than competitive bidding,
and a description of the classes of licensees assigned under
each method.
(2) The extent to which requiring entities to obtain
licenses through competitive bidding places those entities at a
competitive or financial disadvantage 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' financial 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 competitive
bidding by incumbent spectrum license holders as applicants or
investors in an applicant, including a discussion of any
additional effect if such applicant 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 possible competitive disadvantages
described in paragraph (2).

(c) FCC Assistance.--The Federal Communications Commission shall
provide information and assistance, as necessary, to facilitate the
completion of the examination required by subsection (a).

TITLE III--UNIVERSAL SERVICE NOTE: Universal Service Antideficiency
Temporary Suspension Act.

SEC. 301. SHORT TITLE.

This title may be cited as the ``Universal Service Antideficiency
Temporary Suspension Act''.

[[Page 3998]]
118 STAT. 3998

SEC. 302. APPLICATION OF CERTAIN TITLE 31 PROVISIONS TO UNIVERSAL
SERVICE FUND.

(a) NOTE: Effective date. Termination date. 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 Federal universal
service contributions required by section 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 service support programs
established pursuant to that section.

(b) Post-2005 Fulfillment of Protected Obligations.--Section 1341
and subchapter II of chapter 15 of title 31, United States Code, do not
apply after December 31, 2005, to an expenditure or obligation described
in subsection (a)(2) made or authorized during the period described in
subsection (a).

Approved December 23, 2004.

LEGISLATIVE HISTORY--H.R. 5419 (S. 1250):
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SENATE REPORTS: No. 108-130 accompanying S. 1250 (Comm. on Commerce,
Science, and Transportation).
CONGRESSIONAL RECORD, Vol. 150 (2004):
Nov. 20, considered and passed House.
Dec. 8, considered and passed Senate.
WEEKLY COMPILATION OF PRESIDENTIAL DOCUMENTS, Vol. 40 (2004):
Dec. 23, Presidential statement.