[Congressional Bills 105th Congress]
[From the U.S. Government Publishing Office]
[S. 255 Introduced in Senate (IS)]







105th CONGRESS
  1st Session
                                 S. 255

To amend the Communications Act of 1934 to provide for the reallocation 
and auction of a portion of the electromagnetic spectrum to enhance law 
    enforcement and public safety telecommunications, and for other 
                               purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                            February 4, 1997

  Mr. McCain 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 provide for the reallocation 
and auction of a portion of the electromagnetic spectrum to enhance law 
    enforcement and public safety telecommunications, 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 ``Law Enforcement and Public Safety 
Telecommunications Empowerment Act''.

SEC. 2. FINDINGS.

    The Congress makes the following findings:
            (1) Improvements in technology have made it possible for 
        television broadcast stations to offer advanced television 
        services.
            (2) To facilitate the transition to advanced television 
        services, the Federal Communications Commission is issuing 
        additional licenses to existing broadcast licensees and 
        permittees under section 336 of the Communications Act of 1934 
        (47 U.S.C. 336).
            (3) As part of the transition to advanced television 
        services, the Federal Communications Commission will develop 
        and implement an allotment plan that will permit the repacking 
        of television broadcast station licenses into a smaller segment 
        of the Very High Frequency and Ultra High Frequency bands than 
        presently used for broadcast television.
            (4) Implementation of the advanced television service 
        transition plan will enable the Federal Communications 
        Commission to allocate spectrum to other purposes.
            (5) Implementation of the advanced television service 
        transition plan will permit recovery for the public of a 
        portion of the value of the public spectrum resource made 
        available for commercial use.
            (6) Many of the State and local agencies responsible for 
        law enforcement and public safety have inadequate spectrum and 
        inadequate funding to maintain the existing level of, or to 
        effect improvements in, the radio communications on which they 
        depend to perform their missions.
            (7) Implementation of the advanced television service 
        transition plan will permit State and local law enforcement and 
        public safety agencies to secure additional spectrum and 
        additional funding for mission-related activities.

SEC. 3. DEFINITIONS.

    As used in this Act, the term--
            (1) ``Board'' means the Board of Directors of the 
        Institute;
            (2) ``Director'' means the Executive Director of the 
        Institute;
            (3) ``Governor'' means the Chief Executive Officer of a 
        State;
            (4) ``Institute'' means the Public Safety 
        Telecommunications Institute;
            (5) ``recipient'' means any grantee, contractor, or 
        recipient of financial assistance under this Act; and
            (6) ``State'' means any State of the United States and 
        includes the District of Columbia.

SEC. 4. RECLAMATION OF SPECTRUM.

    (a) Commission Action.--Part I of title III of the Communications 
Act of 1934 (47 U.S.C. 301 et seq.) is amended by adding at the end 
thereof the following:

``SEC. 337. RECLAMATION AND REALLOCATION OF SPECTRUM FOR LAW 
              ENFORCEMENT, PUBLIC SAFETY, AND COMMERCIAL PURPOSES.

    ``(a) In General.--The Commission may not issue new broadcast 
station licenses in the spectrum between 746 and 806 megahertz after 
the date of enactment of the Law Enforcement and Public Safety 
Telecommunications Empowerment Act, except as provided by this section 
and that Act.
    ``(b) Incumbent Broadcast Licensees.--Any person who, on the date 
of enactment of that Act, holds a license to operate a television 
broadcasting station, or a permit to construct such a station, between 
746 and 806 megahertz--
            ``(1) may not operate at that frequency after the date on 
        which the advanced television services transition period 
        terminates, as determined by the Commission; and
            ``(2) shall surrender any license to operate such a 
        television broadcast station, or permit to construct such a 
        television broadcasting station, to the Commission for 
        reallocation under this Act within 30 days after that date.
    ``(c) Spectrum Between 746 and 806 Megahertz.--
            ``(1) Public safety.--Within 30 days after the date of 
        enactment of that Act, the Commission shall allocate and assign 
        24 megahertz of electromagnetic spectrum to law enforcement and 
        public safety use. The provisions of chapter 5 of title 5, 
        United States Code, do not apply to the allocation and 
        assignment of spectrum under this paragraph, and such 
        allocation and assignment shall be carried out as expeditiously 
        as possible without regard to any other provision of law or 
        regulation thereunder relating to notice and opportunity for a 
        hearing.
            ``(2) Commercial use.--Within 1 year after the date of 
        enactment of that Act, the Commission shall allocate 36 
        megahertz of electromagnetic spectrum between 746 and 806 
        megahertz for commercial uses.
    ``(d) Transfer of Assignment Authority.--The Commission shall 
transfer to the Public Safety Telecommunications Institute established 
under section 8 of that Act the right to assign spectrum allocated 
under subsection (c)(2) in accordance with this section and the 
provisions of that Act.
    ``(e) Assignment by Public Safety Telecommunications Institute.--
Within 5 years after the date of enactment of that Act, the Institute 
shall assign licenses for the commercial use of the spectrum for which 
assignment authority was transferred to it under subsection (d) by 
competitive bidding carried out in a manner consistent with section 
309(j) of this Act. The Institute shall work closely with the 
Commission in assigning licenses for the commercial use of that 
spectrum, and shall make such assignments in accordance with rules 
established by the Commission.
    ``(f) Sequential Assignment of Surplus Public Safety Spectrum.--If 
the Governor of any State to which spectrum is assigned for law 
enforcement and public safety purposes determines that a portion of 
that spectrum is excess to the needs of the State for such purposes, 
then the Governor may lease, sell, or otherwise assign any such excess 
portion to any person for any lawful purpose under this Act under such 
terms and conditions as the Governor may require. Any term used in this 
subsection that is defined in section 3 of the Law Enforcement and 
Public Safety Telecommunications Empowerment Act has the meaning given 
to it by that section.
    ``(g) Effective Date for Auctioned Spectrum.--Licenses assigned 
under subsection (e) shall become effective on the day after the date 
on which the advanced television services transition period terminates, 
as determined by the Commission. A license assigned under subsection 
(f) shall become effective on the next business day following the date 
on which it is assigned.''.
    (b) Clerical Amendment.--The table of sections for the 
Communications Act of 1934 is amended by inserting after the item 
relating to section 336 the following:

        ``337. Reclamation and reallocation of spectrum for law 
            enforcement, public safety, and commercial 
            purposes............................''

SEC. 5. USE OF PROCEEDS FROM AUCTION.

    (a) Establishment of Account.--There is hereby established on the 
books of the Treasury an account for the proceeds of the auction 
conducted under section 8(b). Except as provided in subsections (b) and 
(c), all proceeds from that auction shall be deposited in the Treasury 
in accordance with chapter 33 of title 31, United States Code, and 
credited to the account established by this subsection.
    (b) Law Enforcement and Public Safety.--
            (1) Amount.--Out of the amounts received from the auction 
        of spectrum under section 8(b), the Institute shall retain 
        amounts equal to 10 percent of the sum of the amounts credited 
        to that account, but not less than $200,000,000 nor more than 
        $750,000,000, for use in funding State and local law 
        enforcement and public safety agencies' mission-related radio 
        communications capabilities.
            (2) Allocation among States.--Amounts retained under 
        paragraph (1) shall be distributed to each State in proportion 
        to its share of the population of the United States according 
        to the latest decennial census, subject to such procedures and 
        conditions as the Commission may establish to ensure proper 
        accounting for the use of distributed amounts.
            (3) Use of Amounts Received.--The chief executive officer 
        of each State shall use amounts received under this section 
        exclusively for the purpose for which such amounts are 
        authorized under this Act. In administering any amounts 
        received under this section, that chief executive officer shall 
        give due regard to opportunities that--
                    (A) commercially-provided services; and
                    (B) the sharing of resources and facilities by law 
                enforcement and public safety agencies,
        afford for improved and more efficient law enforcement and 
        public safety radio communications.
    (c) Administrative Expenses.--
            (1) Institute.--Out of amounts received from the auction 
        under section 8(b) of this Act remaining after provision is 
        made for the distribution under subsection (b) of this section, 
        the Institute shall--
                    (A) retain such amounts as may be necessary to fund 
                its administrative expenses; and
                    (B) transfer to the Federal Communications 
                Commission such sums as may be necessary to compensate 
                it for its costs incurred in support of the Institute's 
                operations.
            (2) Federal Communications Commission.--The salaries and 
        expenses account of the Commission shall retain as an 
        offsetting collection such sums as may be transferred to the 
        Commission under paragraph (1) to cover the costs of developing 
        and implementing the program required by this Act. Such 
        offsetting collections shall be available for obligation 
        subject to the terms and conditions of the receiving 
        appropriations account, and shall be deposited in such accounts 
        on a quarterly basis. Any funds appropriated to the Commission 
        for fiscal year during which the auction generates proceeds 
        shall be used by the Commission to implement this Act. Such 
        offsetting collections are authorized to remain available until 
        expended.

SEC. 6. PERMANENT AUCTION AUTHORITY.

    Section 309(j) of the Communications Act of 1934 (47 U.S.C. 309(j)) 
is amended by striking paragraph (11) and redesignating paragraphs (12) 
and (13) as paragraphs (11) and (12).

SEC. 7. RELATIONSHIP TO OTHER LAW.

    (a) In General.--Nothing in this Act, or in section 309(j) or 337 
of the Communications Act of 1934 (as added by this Act), may be 
construed as a violation of any provision of the Omnibus Budget 
Reconciliation Act of 1990, or any other provision of law prohibiting 
or limiting the earmarking of revenues.
    (b) Effective Date.--The provisions of subsection (a) apply to any 
auction of spectrum under this Act, or under the Communications Act of 
1934, that takes place after January 31, 1997.

SEC. 8. PUBLIC SAFETY TELECOMMUNICATIONS INSTITUTE.

    (a) Establishment; Purpose; Incorporation; Powers.--There is 
established a private nonprofit corporation which shall be known as the 
Public Safety Telecommunications Institute. The purposes of the 
Institute are--
            (1) to auction and assign spectrum in accordance with 
        section 337 of the Communications Act of 1934 and this Act;
            (2) to award grants and contracts under this Act;
            (3) to certify programs that are intended to use funds made 
        available under this Act to aid and improve State law 
        enforcement and public safety telecommunications systems; and
            (4) to carry out its other duties under this Act.
        The Institute may be incorporated in any State under section 
        9(a) of this Act. To the extent consistent with the provisions 
        of this Act, the Institute may exercise the powers conferred 
        upon a nonprofit corporation by the laws of the State in which 
        it is incorporated.
    (b) Duties.--
            (1) In general.--The Institute shall--
                    (A) auction spectrum transferred to it under 
                section 337 of the Communications Act of 1934 in 
                accordance with section 309(j) of the Communications 
                Act of 1934;
                    (B) assign licenses for the commercial use of such 
                spectrum in accordance with section 337; and
                    (C) administer the proceeds received from the 
                auction in accordance with the provisions of this Act.
            (2) Application of section 309(j).--For the purpose of 
        applying section 309(j) of the Communications Act of 1934 to 
        the Institute--
                    (A) the term ``Institute'', as defined in section 3 
                of this Act, shall be substituted for ``Commission'' 
                each place it appears; and
                    (B) paragraph (8) of section 309(j) of such Act 
                shall not apply.
    (c) Maintenance of Offices in State of Incorporation; Agent for 
Receipt of Service of Process.--The Institute shall maintain its 
principal offices in the State in which it is incorporated and shall 
maintain therein a designated agent to accept service of process for 
the Institute. Notice to or service upon the agent shall be deemed 
notice to or service upon the Institute.
    (d) Tax Status of Institute and Programs Assisted Thereby.--The 
Institute, and any program assisted by the Institute, shall be eligible 
to be treated as an organization described in section 170(c)(2)(B) of 
the Internal Revenue Code of 1986 (26 U.S.C. 170(c)(2)(B)) and as an 
organization described in section 501(c)(3) of the Internal Revenue 
Code of 1986 (26 U.S.C. 501(c)(3)) which is exempt from taxation under 
section 501(a) of such Code (26 U.S.C. 501(a)). If such treatments are 
conferred in accordance with the provisions of such Code, the 
Institute, and programs assisted by the Institute, shall be subject to 
all provisions of such Code relevant to the conduct of organizations 
exempt from taxation.
    (f) Rules, Regulations, Etc.; Notice and Comment.--The Institute 
shall afford notice and reasonable opportunity for comment to 
interested parties prior to issuing rules, regulations, guidelines, and 
instructions under this Act, and it shall publish in the Federal 
Register all rules, regulations, guidelines, and instructions. The 
publication of a substantive rule shall not be made less than 30 days 
before the effective date of such rule, except as otherwise provided by 
the Institute for good cause found and published with the rule.

SEC. 9. BOARD OF DIRECTORS.

    (a) Appointment and Membership.--
            (1) The Institute shall be supervised by a Board of 
        Directors, consisting of--
                    (A) 6 members to be appointed by the President, by 
                and with the advice and consent of the Senate; and
                    (B) the Chairman of the Federal Communications 
                Commission, ex officio.
            (2) The President shall make the initial appointments of 
        members of the Board under this subsection 90 days after the 
        effective date of this Act. In the case of any other 
        appointment of a member, the President shall make the 
        appointment not later than 90 days after the previous term 
        expires or the vacancy occurs, as the case may be.
            (3) The initial members of the Board of Directors shall be 
        the incorporators of the Institute and shall determine the 
        State in which the Institute is to be incorporated.
    (b) Term of Office.--
            (1) Except as provided in paragraph (2), the term of each 
        appointed member of the Board shall be 5 years. Each such 
        member of the Board shall continue to serve until the successor 
        to such member has been appointed and qualified.
            (2) Three of the members first appointed by the President 
        shall serve for a term of 2 years. Any member appointed to 
        serve an unexpired term which has arisen by virtue of the 
        death, disability, retirement, or resignation of a member shall 
        be appointed only for such unexpired term, but shall be 
        eligible for reappointment.
            (3) The term of initial members shall commence from the 
        date of the first meeting of the Board, and the term of each 
        member other than an initial member shall commence from the 
        date of termination of the preceding term.
    (c) Reappointment.--No member shall be reappointed to more than 2 
consecutive terms immediately following such member's initial term.
    (d) Compensation; Reimbursement for Expenses.--Members of the Board 
shall serve without compensation, but shall be reimbursed for actual 
and necessary expenses incurred in the performance of their official 
duties.
    (e) Status of Members of Board as Officers and Employees of United 
States.--The members of the Board shall not, by reason of such 
membership, be considered officers or employees of the United States.
    (f) Voting Rights of Board Members; Quorum; Action of Board on 
Concurrence of Majority.--Each member of the Board shall be entitled to 
one vote. A simple majority of the membership shall constitute a quorum 
for the conduct of business. The Board shall act upon the concurrence 
of a simple majority of the membership present and voting.
    (g) Chairman; Initial Selection and Term of Office; Subsequent 
Annual Election.--The Board shall select from among the appointed 
members of the Board a chairman, the first of whom shall serve for a 
term of 3 years. Thereafter, the Board shall annually elect a chairman 
from among its appointed members.
    (h) Grounds for Removal of Members.--An appointed member of the 
Board may be removed by a vote of 4 members for malfeasance in office, 
persistent neglect of, or inability to discharge duties, or for any 
offense involving moral turpitude, but for no other cause.
    (i) Quarterly Meetings of Board; Special Meetings.--Regular 
meetings of the Board shall be held quarterly. Special meetings shall 
be held from time to time upon the call of the chairman, acting at his 
own discretion or pursuant to the petition of any 3 members.
    (j) Open Meetings.--All meetings of the Board, any executive 
committee of the Board, and any council established in connection with 
this Act, shall be open and subject to the requirements and provisions 
of section 552b of title 5, United States Code, relating to open 
meetings.
    (k) Duties and Functions of Board.--In its direction and 
supervision of the activities of the Institute, the Board shall--
            (1) establish policies and develop such programs for the 
        Institute that will further the achievement of its purpose and 
        performance of its functions;
            (2) establish policy and funding priorities and issue 
        rules, regulations, guidelines, and instructions pursuant to 
        such priorities;
            (3) appoint and fix the duties of the Executive Director of 
        the Institute, who shall serve at the pleasure of the Board and 
        shall be a nonvoting ex officio member of the Board;
            (4) present to other Government departments, agencies, and 
        instrumentalities whose programs or activities relate to the 
        employment of telecommunications in connection with law 
        enforcement and public safety, the recommendations of the 
        Institute for the improvement of such programs or activities; 
        and
            (6) award grants and enter into cooperative agreements or 
        contracts pursuant to section 11.

SEC. 10. OFFICERS AND EMPLOYEES.

    (a) Duties of Director; Appointment and Removal of Employees; 
Political Tests or Qualifications Prohibited.--
            (1) The Director, subject to general policies established 
        by the Board, shall supervise the activities of persons 
        employed by the Institute and may appoint and remove such 
        employees as he determines necessary to carry out the purposes 
        of the Institute. The Director shall be responsible for the 
        executive and administrative operations of the Institute, and 
        shall perform such duties as are delegated to such Director by 
        the Board and the Institute.
            (2) No political test or political qualification shall be 
        used in selecting, appointing, promoting, or taking any other 
        personnel action with respect to any officer, agent, or 
        employee of the Institute, or in selecting or monitoring any 
        grantee, contractor, person, or entity receiving financial 
        assistance under this Act.
    (b) Compensation.--Officers and employees of the Institute shall be 
compensated at rates determined by the Board, but not in excess of the 
rate of level V of the Executive Schedule specified in section 5316 of 
title 5, United States Code.
    (c) Status of Institute as Department, Agency, or Instrumentality 
of Federal Government; Authority of Office of Management and Budget.--
            (1) Except as otherwise specifically provided in this Act, 
        the Institute shall not be considered a department, agency, or 
        instrumentality of the Federal Government.
            (2) This Act does not limit the authority of the Office of 
        Management and Budget to review and submit comments upon the 
        Institute's annual budget request at the time it is transmitted 
        to the Congress.
    (d) Status of Officers and Employees of Institute as Officers and 
Employees of United States.--
            (1) Except as provided in paragraph (2), officers and 
        employees of the Institute shall not be considered officers or 
        employees of the United States.
            (2) Officers and employees of the Institute shall be 
        considered officers and employees of the United States solely 
        for the purposes of the following provisions of title 5, United 
        States Code; Subchapter I of chapter 81 (5 U.S.C. 8101 et seq.) 
        (relating to compensation for work injuries); chapters 83 and 
        84 (5 U.S.C. 8301 et seq. and 8401 et seq.) (relating to civil 
        service retirement); chapter 87 (5 U.S.C. 8701 et seq.) 
        (relating to life insurance); and chapter 89 (5 U.S.C. 8901 et 
        seq.) (relating to health insurance). The Institute shall make 
        contributions under the provisions referred to in this 
subsection at the same rates applicable to agencies of the Federal 
Government.
    (e) Freedom of Information Requirements.--The Institute and its 
officers and employees shall be subject to the provisions of section 
552 of title 5, United States Code, relating to freedom of information.

SEC. 11. GRANTS AND CONTRACTS.

    (a) Authority of Institute; Purpose of Grants.--The Institute is 
authorized--
            (1) to award grants and enter into cooperative agreements 
        or contracts, in a manner consistent with subsection (b);
            (2) to evaluate, when appropriate, the programs and 
        projects carried out under this Act to determine the extent to 
        which they have met or failed to meet the purposes of this Act; 
        and
            (3) to encourage, assist, and serve in a consulting 
        capacity to State and local law enforcement and public safety 
        system agencies in the development, maintenance, and 
        coordination of telecommunications programs and services.
    (b) Priority in Making Awards; Alternative Recipients; Approval of 
Applications; Receipt and Administration of Funds; Accountability.--The 
Institute may award grants and enter into cooperative agreements or 
contracts as follows:
            (1) The Institute may award grants to or enter into 
        cooperative agreements or contracts with the chief executive 
        officer of each State to carry out the purposes of this Act.
            (2) The Institute may, if the objective can better be 
        served thereby, award grants to or enter into cooperative 
        agreements or contracts with--
                    (A) other nonprofit organizations with expertise in 
                law enforcement and public safety telecommunication;
                    (B) institutions of higher education;
                    (C) individuals, partnerships, firms, or 
                corporations; and
                    (D) private agencies with expertise in law 
                enforcement and public safety telecommunication 
                administration.
            (3) The Institute may enter into contracts with Federal 
        agencies to carry out the purposes of this Act.
    (c) Permissible Uses of Funds.--Funds available pursuant to grants, 
cooperative agreements, or contracts awarded under this section may be 
used--
            (1) to assist State and local law enforcement and public 
        safety administrations in establishing, improving, and 
        integrating telecommunications;
            (2) to support education and training programs for law 
        enforcement and public safety officials and other state and 
        local personnel in the effective use of telecommunications in 
        carrying out their law enforcement and public safety functions;
            (3) to support studies of the adequacy of law enforcement 
        and public safety telecommunications systems for State and 
        local governments and to implement and evaluate innovative 
        responses to law enforcement and public safety 
        telecommunications problems; and
            (4) to carry out such other programs, consistent with the 
        purposes of this Act, as may be deemed appropriate by the 
        Institute.

SEC. 12. LIMITATIONS ON GRANTS AND CONTRACTS.

    (a) Duties of Institute.--With respect to grants made and contracts 
or cooperative agreements entered into under this Act, the Institute 
shall--
            (1) ensure that no funds made available to recipients by 
        the Institute shall be used at any time, directly or 
        indirectly, to influence the issuance, amendment, or revocation 
        of any Executive order or similar promulgation by any State or 
local agency, or to undertake to influence the passage or defeat of any 
legislation or constitutional amendment by the Congress of the United 
States, or by any State or local legislative body, or any State 
proposal by initiative petition, or of any referendum, unless a 
governmental agency, legislative body, a committee, or a member 
thereof--
                    (A) requests personnel of the recipients to 
                testify, draft, or review measures or to make 
                representations to such agency, body, committee, or 
                member; or
                    (B) is considering a measure directly affecting the 
                activities under this Act of the recipient or the 
                Institute; and
            (2) ensure all personnel engaged in grant, cooperative 
        agreement, or contract assistance activities supported in whole 
        or part by the Institute refrain, while so engaged, from any 
        partisan political activity.
    (b) Prohibited Uses of Funds.--To ensure that funds made available 
under this Act are used to supplement and improve the operation of 
State and local government law enforcement and public safety 
telecommunications systems, rather than to support basic existing 
systems, funds shall not be used--
            (1) to supplant State or local funds currently supporting a 
        program or activity; or
            (2) to construct telecommunications facilities or 
        structures, except to remodel existing facilities to 
        demonstrate new architectural or technological techniques, or 
        to provide temporary facilities for new personnel or for 
        personnel involved in a demonstration or experimental program.

SEC. 13. RESTRICTIONS ON ACTIVITIES OF THE INSTITUTE.

    (a) Issuance of Shares of Stock; Declaration of Dividends; 
Compensation for Services; Reimbursement for Expenses; Political 
Activities.--
            (1) The Institute shall have no power to issue any shares 
        of stock, or to declare or pay any dividends.
            (2) No part of the income or assets of the Institute shall 
        enure to the benefit of any director, officer, or employee, 
        except as reasonable compensation for services or reimbursement 
        for expenses.
            (3) Neither the Institute nor any recipient shall 
        contribute or make available Institute funds or program 
        personnel or equipment to any political party or association, 
        or the campaign of any candidate for public or party office.
            (4) The Institute shall not contribute or make available 
        Institute funds or program personnel or equipment for use in 
        advocating or opposing any ballot measure, initiative, or 
        referendum.
    (c) Identification of Institute With Political Activities.--
Officers and employees of the Institute or of recipients shall not at 
any time intentionally identify the Institute or the recipient with any 
partisan or nonpartisan political activity associated with a political 
party or association, or the campaign of any candidate for public or 
party office.

SEC. 14. PRESIDENTIAL COORDINATION.

    The President may, to the extent not inconsistent with any other 
applicable law, direct that appropriate support functions of the 
Federal Government may be made available to the Institute in carrying 
out its functions under this Act.

SEC. 15. RECORDS AND REPORTS.

    (a) Reports.--The Institute is authorized to require such reports 
as it deems necessary from any recipient with respect to activities 
carried out pursuant to this Act.
    (b) Records.--The Institute is authorized to prescribe the keeping 
of records with respect to funds provided by any grant, cooperative 
agreement, or contract under this Act and shall have access to such 
records at all reasonable times for the purpose of ensuring compliance 
with such grant, cooperative agreement, or contract or the terms and 
conditions upon which financial assistance was provided.
    (c) Submission of Copies of Reports to Recipients; Maintenance in 
Principal Office of Institute; Availability for Public Inspection; 
Furnishing of Copies to Interested Parties.--Copies of all reports 
pertinent to the evaluation, inspection, or monitoring of any recipient 
shall be submitted on a timely basis to such recipient, and shall be 
maintained in the principal office of the Institute for a period of at 
least 5 years after such evaluation, inspection, or monitoring. Such 
reports shall be available for public inspection during regular 
business hours, and copies shall be furnished, upon request, to 
interested parties upon payment of such reasonable fees as the 
Institute may establish.

SEC. 16. AUDITS.

    (a) Time and Place of Audits; Standards; Availability of Books, 
Accounts, Facilities, Etc., to Auditors; Filing of Report and 
Availability for Public Inspection.--
            (1) The accounts of the Institute shall be audited 
        annually. Such audits shall be conducted in accordance with 
        generally accepted auditing standards by independent certified 
        public accountants who are certified by a regulatory authority 
        of the jurisdiction in which the audit is undertaken.
            (2) The audits shall be conducted at the place or places 
        where the accounts of the Institute are normally kept. All 
        books, accounts, financial records, reports, files, and other 
        papers or property belonging to or in use by the Institute and 
        necessary to facilitate the audits shall be made available to 
        the person or persons conducting the audits. The full 
        facilities for verifying transactions with the balances and 
        securities held by depositories, fiscal agents, and custodians 
        shall be afforded to any such person.
            (3) The report of the annual audit shall be filed with the 
        General Accounting Office and shall be available for public 
        inspection during business hours at the principal office of the 
        Institute.
    (b) Additional Audits; Requirements; Reports and Recommendations to 
Congress and Attorney General.--
            (1) In addition to the annual audit, the financial 
        transactions of the Institute for any fiscal year during which 
        Federal funds are available to finance any portion of its 
        operations may be audited by the General Accounting Office in 
        accordance with such rules and regulations as may be prescribed 
        by the Comptroller General of the United States.
            (2) Any such audit shall be conducted at the place or 
        places where accounts of the Institute are normally kept. The 
        representatives of the General Accounting Office shall have 
        access to all books, accounts, financial records, reports, 
        files, and other papers or property belonging to or in use by 
        the Institute and necessary to facilitate the audit. The full 
        facilities for verifying transactions with the balances and 
        securities held by depositories, fiscal agents, and custodians 
        shall be afforded to such representatives. All such books, 
        accounts, financial records, reports, files, and other papers 
        or property of the Institute shall remain in the possession and 
        custody of the Institute throughout the period beginning on the 
        date such possession or custody commences and ending three 
        years after such date, but the General Accounting Office may 
        require the retention of such books, accounts, financial 
        records, reports, files, and other papers or property for a 
        longer period under section 3523(c) of title 31, United States 
        Code.
            (3) A report of such audit shall be made by the Comptroller 
        General to the Congress and to the Attorney General, together 
        with such recommendations with respect thereto as the 
        Comptroller General deems advisable.
    (c) Annual Audits by Institute or Recipients; Reports; Submission 
of Copies to Comptroller General; Inspection of Books, Accounts, Etc.; 
Availability of Audit Reports for Public Inspection.--
            (1) The Institute shall conduct, or require each recipient 
        to provide for, an annual fiscal audit of the use of funds 
        received under this Act. The report of each such audit shall be 
        maintained for a period of at least 5 years at the principal 
        office of the Institute.
            (2) The Institute shall submit to the Comptroller General 
        of the United States copies of such reports, and the 
        Comptroller General may, in addition, inspect the books, 
        accounts, financial records, files, and other papers or 
        property belonging to or in use by such grantee, contractor, 
        person, or entity, which relate to the disposition or use of 
        funds received from the Institute. Such audit reports shall be 
        available for public inspection during regular business hours, 
        at the principal office of the Institute.

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