[Congressional Bills 105th Congress]
[From the U.S. Government Publishing Office]
[S. 741 Introduced in Senate (IS)]







105th CONGRESS
  1st Session
                                 S. 741

     To amend the Communications Act of 1934 to enable the Federal 
 Communications Commission to enhance its spectrum management program 
capabilities through the collection of lease fees for new spectrum for 
radio services that are statutorily excluded from competitive bidding, 
 and to enhance law enforcement and public safety radio communications.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                              May 14, 1997

  Mr. Breaux 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 enable the Federal 
 Communications Commission to enhance its spectrum management program 
capabilities through the collection of lease fees for new spectrum for 
radio services that are statutorily excluded from competitive bidding, 
 and to enhance law enforcement and public safety radio communications.

    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 ``Private Wireless Spectrum 
Availability Act''.

SEC. 2. DEFINITIONS.

    As used in this Act--
            (1) Commission.--The term ``Commission'' means the Federal 
        Communications Commission.
            (2) Public safety.--The term ``public safety'' means fire, 
        police, or emergency medical service including critical care 
        medical telemetry, and such other services related to public 
        safety as the Commission may include within the definition of 
        public safety for purposes of this Act.
            (3) Private wireless.--The term ``private wireless'' 
        encompasses all land mobile telecommunications systems operated 
        by or through industrial, business, transportation, 
        educational, philanthropic or ecclesiastical organizations 
        where these systems, the operation of which may be shared, are 
        for the licensees' internal use, rather than subscriber-based 
        Commercial Mobile Radio Services (CMRS) systems.
            (4) Spectrum lease fee.--The term ``spectrum lease fee'' 
        means a periodic payment for the use of a given amount of 
        electromagnetic spectrum in a given area in consideration of 
        which the user is granted a license for such use.

SEC. 3. FINDINGS.

    The Congress finds that:
            (1) Private wireless communications systems enhance the 
        competitiveness of American industry and business in 
        international commerce, promote the development of national 
        infrastructure, improve the delivery of products and services 
        to consumers in the United States and abroad, and contribute to 
        the economic and social welfare of citizens of the United 
        States.
            (2) The highly specialized telecommunications requirements 
        of licensees in the private wireless services would be served, 
        and a more favorable climate would be created for the 
        allocation of additional electromagnetic spectrum for those 
        services if an alternative license administration methodology, 
        in addition to the existing competitive bidding process, were 
        made available to the Commission.

SEC. 4. SPECTRUM LEASING FEES.

    Title I of the Communications Act of 1934 (47 U.S.C. 151 et seq.) 
is amended by adding at the end thereof the following:

``SEC. 12. SPECTRUM LEASE FEE PROGRAM.

    ``(a) Spectrum Lease Fees.--
            ``(1) In general.--Within 6 months after the date of 
        enactment of the Private Wireless Spectrum Availability Act, 
        the Commission shall by rule--
                    ``(A) implement a system of spectrum lease fees 
                applicable to newly allocated frequency bands, as 
                described in section 5 of the Private Wireless Spectrum 
                Availability Act, assigned to systems (other than 
                public safety systems (as defined in section 2(2) of 
                the Private Wireless Spectrum Availability Act)) in 
                private wireless service;
                    ``(B) provide appropriate incentives for licensees 
                to confine their radio communications to the area of 
                operation actually required for that communication; and
                    ``(C) permit private land mobile frequency advisory 
                committees certified by the Commission to assist in the 
                computation, assessment, collection, and processing of 
                amounts received under the system of spectrum lease 
                fees.
            ``(2) Formula.--The Commission shall include as a part of 
        the rulemaking carried out under paragraph (1)--
                    ``(A) a formula to be used by private wireless 
                licensees and certified frequency advisory committees 
                to compute spectrum lease fees; and
                    ``(B) an explanation of the technical factors 
                included in the spectrum lease fee formula, including 
                the relative weight given to each factor.
    ``(b) Fee Basis.--
            ``(1) Initial fees.--Fees assessed under the spectrum lease 
        fee system established under subsection (a) shall be based on 
        the approximate value of the assigned frequencies to licensees. 
        In assessing the value of the assigned frequencies to licensees 
        under this subsection, the Commission shall take into account 
        all relevant factors, including the amount of assigned 
        bandwidth, the coverage area of a system, the geographic 
        location of the system, and the degree of frequency sharing 
        with other licensees in the same area. These factors shall be 
        incorporated in the formula described in subsection (a)(2).
            ``(2) Adjustment of fees.--The Commission may adjust the 
        formula developed under subsection (a)(2) whenever it 
        determines that adjustment is necessary in order to calculate 
        the lease fees more accurately or fairly.
            ``(3) Fee cap.--The spectrum lease fees shall be set so 
        that, over a 10-year license term, the amount of revenues 
        generated will not exceed the revenues generated from the 
        auction of comparable spectrum. For purposes of this paragraph, 
        the `comparable spectrum' shall mean spectrum located within 
        500 megahertz of that spectrum licensed in a concluded auction 
        for mobile radio communication licenses.
    ``(c) Application to Private Wireless Systems.--After the 
Commission has implemented the spectrum leasing fee system under 
subsection (a) and provided licensees access to new spectrum as defined 
in section 6(c)(2) of the Private Wireless Spectrum Availability Act, 
it shall assess the fees established for that system against all 
licensees authorized in any new frequency bands allocated for private 
wireless use.''.

SEC. 5. SPECTRUM LEASE FEE PROGRAM INITIATION.

    (a) In General.--The Commission shall allocate for use in the 
spectrum lease fee program under section 12 of the Communications Act 
of 1934 (47 U.S.C. 162) not less than 12 megahertz of electromagnetic 
spectrum, previously unallocated to private wireless, located between 
150 megahertz and 1000 megahertz on a nationwide basis.
    (b) Existing Incumbents.--In allocating electromagnetic spectrum 
under subsection (a), the Commission shall ensure that existing 
incumbencies do not inhibit effective access to use of newly allocated 
spectrum to the detriment of the spectrum lease fee program.
    (c) Timeframe.--
            (1) Allocation.--The Commission shall allocate 
        electromagnetic spectrum under subsection (a) within 6 months 
        after the date of enactment of this Act.
            (2) Access.--The Commission shall take such reasonable 
        action as may be necessary to ensure that initial access to 
        electromagnetic spectrum allocated under subsection (a) 
        commences not later than 12 months after the date of enactment 
        of this Act.

SEC. 6. DELEGATION OF AUTHORITY.

    Section 5 of the Communications Act of 1934 (47 U.S.C. 155) is 
amended by adding at the end thereof the following:
    ``(f) Delegation to Certified Frequency Advisory Committees.--
            ``(1) In general.--The Commission may, by published rule or 
        order, utilize the services of certified private land mobile 
        frequency advisory committees to assist in the computation, 
        assessment, collection, and processing of funds generated 
through the spectrum lease fee program under section 12 of this Act. 
Except as provided in paragraph (3), a decision or order made or taken 
pursuant to such delegation shall have the same force and effect, and 
shall be made, evidenced, and enforced in the same manner, as decisions 
or orders of the Commission.
            ``(2) Processing and depositing of fees.--A frequency 
        advisory committee shall deposit any spectrum lease fees 
        collected by it under Commission authority with a banking agent 
        designated by the Commission in the same manner as it deposits 
        application filing fees collected under section 8 of this Act.
            ``(3) Review of actions.--A decision or order under 
        paragraph (1) is subject to review in the same manner, and to 
        the same extent, as decisions or orders under subsection (c)(1) 
        are subject to review under paragraphs (4) through (7) of 
        subsection (c).

SEC. 7. PROHIBITION OF USE OF COMPETITIVE BIDDING.

    Section 309(j)(6) of the Communications Act of 1934 (47 U.S.C. 
309(j)(6)) is amended--
            (1) by striking ``or'' at the end of subparagraph (G);
            (2) by striking the period at the end of subparagraph (H) 
        and inserting a semicolon and ``or''; and
            (3) by adding at the end thereof the following:
                    ``(I) preclude the Commission from considering the 
                public interest benefits of private wireless 
                communications systems (as defined in section 2(3) of 
                the Spectrum Efficiency Reform Act of 1977) and making 
                allocations in circumstances in which--
                            ``(i) the pre-defined geographic market 
                        areas required for competitive bidding 
                        processes are incompatible with the needs of 
                        radio services for site-specific system 
                        deployment;
                            ``(ii) the unique operating characteristics 
                        and requirements of Federal agency spectrum 
                        users demand, as a prerequisite for sharing of 
                        Federal spectrum, that nongovernment access to 
                        the spectrum be restricted to radio systems 
                        that are non subscriber-based;
                            ``(iii) licensee concern for operational 
                        safety, security, and productivity are of 
                        paramount importance and, as a consequence, 
                        there is no incentive, interest, or intent to 
                        use the assigned frequency for producing 
                        subscriber-based revenue; or
                            ``(iv) the Commission, in its discretion, 
                        deems competitive bidding processes to be 
                        incompatible with the public interest, 
                        convenience, and necessity.''.

SEC. 8. USE OF PROCEEDS FROM SPECTRUM LEASE FEES.

    (a) Establishment of Account.--There is hereby established on the 
books of the Treasury an account for the spectrum license fees 
generated by the spectrum license fee system established under section 
12 of the Communications Act of 1934 (47 U.S.C. 162). Except as 
provided in subsections (b) and (c), all proceeds from spectrum lease 
fees 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) Administrative Expenses.--Out of amounts received from spectrum 
lease payments a fair and reasonable amount, as determined by the 
Commission, may be retained by a certified frequency advisory committee 
acting under section 5(f) of the Communications Act of 1934 (47 U.S.C. 
155(f)) to cover costs incurred by it in administering the spectrum 
lease fee program.

SEC. 9. LEASING NOT TO AFFECT COMMISSION'S DUTY TO ALLOCATE.

    The implementation of spectrum lease fees as a license 
administration mechanism is not a substitute for effective spectrum 
allocation procedures. The Commission shall continue to allocate 
spectrum to various services on the basis of fulfilling the needs of 
these services, and shall not use fees or auctions as an allocation 
mechanism.

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