[Congressional Bills 107th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4560 Engrossed Amendment Senate (EAS)]

  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  

                  In the Senate of the United States,

                                                         June 18, 2002.
    Resolved, That the bill from the House of Representatives (H.R. 
4560) entitled ``An Act to eliminate the deadlines for spectrum 
auctions of spectrum previously allocated to television 
broadcasting.'', do pass with the following

                               AMENDMENT:

            Strike out all after the enacting clause and insert:

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Auction Reform Act of 2002''.

SEC. 2. FINDINGS.

    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 deadlines, 
        or the subsequent revision of the deadlines, are consistent 
        with sound telecommunications policy and spectrum management 
        principles.
            (2) No comprehensive plan yet exists for allocating 
        additional spectrum for third-generation wireless and other 
        advanced communications services. The Federal Communications 
        Commission should have the flexibility to auction frequencies 
        in the 700 megahertz band for such purposes.
            (3) The study being conducted by the National 
        Telecommunications and Information Administration in 
        consultation 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 megahertz 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 
        television broadcasters, and will be so until the transfer to 
        digital television is completed. This situation creates a 
        tremendous 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 mechanisms 
        for vacating the 700 megahertz band by broadcast stations--
                    (A) produced no certainty that the band would be 
                available 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 incumbent licensee.

SEC. 3. ELIMINATION OF STATUTORY DEADLINES FOR SPECTRUM AUCTIONS.

    (a) FCC To Determine Timing of Auctions.--Section 309(j) of the 
Communications Act of 1934 (47 U.S.C. 309(j)) is amended by adding at 
the end the following new paragraph:
            ``(15) Commission to determine timing of auctions.--
                    ``(A) Commission authority.--Subject to the 
                provisions of this subsection (including paragraph 
                (11)), but notwithstanding any other provision of law, 
                the Commission 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 31 and 
                44.--Except as provided in subparagraph (C), the 
                Commission 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 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 
                                spectrum 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.
            (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 
        September 30, 2000, and for other purposes (Public Law 106-113; 
        113 Stat. 1501A-295), are repealed.

SEC. 4. COMPLIANCE WITH AUCTION AUTHORITY.

    The Federal Communications Commission shall conduct rescheduled 
auctions 31 and 44 prior to the expiration of the auction authority 
under section 309(j)(11) of the Communications Act of 1934 (47 U.S.C. 
309(j)(11)).

SEC. 5. PRESERVATION OF BROADCASTER OBLIGATIONS.

    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.

    (a) Interference Waivers.--In granting a request by a television 
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 
        broadcasting 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
            (2) the interference standards provided for digital 
        broadcasting 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 Communications Act of 1934 (47 U.S.C. 
337).

            Attest:

                                                             Secretary.
107th CONGRESS

  2d Session

                               H. R. 4560

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                               AMENDMENT