Reserve of certain auction proceeds for use to provide interoperable devices

Section 309(j)(8) of the Communications Act of 1934 (47 U.S.C. 309(j)(8)) is amended— (1)in subparagraph (A), by striking subparagraphs (B), (D), and (E) and inserting subparagraphs (B), (D), (E), and (F); (2)in subparagraph (C)(i), by inserting before the semicolon at the end the following: or subparagraph (F); and (3)by adding at the end the following:

(F)

Transfer of certain auction proceeds for use to provide interoperable devices

(i)

Establishment of Trust Fund

(I)

In general

There is established in the Treasury of the United States a trust fund to be known as the First Responders Interoperable Device Availability Trust Fund, consisting of such amounts as shall be deposited under subclause (II). (II)

Transfer of amounts

Notwithstanding subparagraphs (A) and (E) or any other provision of law, there shall be deposited in the First Responders Interoperable Device Availability Trust Fund— (aa)5 percent of the net proceeds (including deposits and upfront payments from successful bidders) from the use of the competitive bidding system established under this subsection; and (bb)100 percent of the net proceeds (including deposits and upfront payments from the successful bidders) from the use of a competitive bidding system under this subsection with respect to the D-block of licenses. (ii)

Grant program

(I)

Establishment

(aa)

Transfer

The Secretary of the Treasury shall transfer to the Administrator of the National Telecommunications and Information Administration amounts in the First Responders Interoperable Device Availability Trust Fund to be used by the Administrator to make grants in accordance with the requirements of this clause to States and Indian tribes— (AA)to purchase interoperable devices meeting the requirements of subclause (III); or (BB)to distribute funds to local public safety entities in order for such entities to use the funds to directly purchase such interoperable devices. (bb)

Condition of grants

(AA)

Cost share

In order to obtain a grant under this clause, a State or Indian tribe shall agree to provide for each interoperable device to be purchased by the State or Indian tribe, from non-Federal sources, an amount equal to the difference (if any) between the actual cost of purchasing that interoperable device and $1,000. (BB)

Other conditions

The Administrator shall, in coordination with the Director of the Office of Emergency Communications within the Department of Homeland Security, develop such additional conditions and requirements that a State or Indian tribe shall meet in order to obtain a grant under this clause as the Administrator and the Director determine necessary. (cc)

Reserve for breakage or loss

(AA)

In general

Of the total amount of grant funds made available to a State or Indian tribe under this clause, the State or Indian tribe shall set aside, reserve, or otherwise allocate not less than 1 percent of such amounts to a reserve fund from which the State or Indian tribe may distribute funds to local public safety entities for repair, maintenance, or loss of the interoperable devices purchased by the State or Indian tribe and distributed to such agencies pursuant to this subparagraph or purchased directly by local public safety entities with any amounts distributed to such entities under subclause (VII). (BB)

Application

In order to be eligible to receive funds for repair, maintenance, or loss as described in subitem (AA), a local public safety entity shall submit an application at such time, in such form, and with such information and assurances as a State or Indian tribe may require. (CC)

NTIA review

Not later than 1 year after the date of enactment of this subparagraph, and each year thereafter, the Administrator shall review the ability of each reserve fund established under subitem (AA) to determine if the 1-percent set aside requirement is sufficient to meet the repair, maintenance, and loss replacement needs of the State or Indian tribe. If the Administrator determines that the 1-percent set aside requirement is not sufficient, the Administrator may by rule increase the set aside requirement up to a maximum of 5 percent of the total amount of grant funds made available to a State or Indian tribe. (dd)

Reserve for administrative costs

Of the total amount of grant funds made available to a State or Indian tribe under this clause, a State or Indian tribe may reserve not more than 5 percent for administrative costs associated with the management and distribution of such funds. (II)

Bulk purchases

A State or Indian tribe may use any grant funds received under subclause (I) to purchase interoperable devices meeting the requirements of subclause (III) on a bulk basis. (III)

Device requirements

Interoperable devices purchased with funds authorized for grants under subclause (I) shall— (aa)provide both mobile satellite and terrestrial based wireless service; (bb)be based on an open source platform; (cc)be devices intended for use by public safety personnel and certified for use on the interoperable network or networks built to serve public safety within the 700 MHz band, as agreed to by the Public Safety Broadband Licensee, or its successors, and its commercial partners, in accordance with rules and regulations promulgated by the Commission; (dd)be compatible with any other platform, spectrum, or wireless network used or reserved for use by the State with respect to interoperable communications within that State; and (ee)satisfy any other interoperable device requirements established as of the date of such purchase by the Secretary of Homeland Security, the Administrator, or the Commission. (IV)

Coordination

In carrying out the grant program established under this clause, the Administrator shall coordinate its efforts to establish interoperable device requirements under subclause (III) with the head of any other Federal agency responsible for establishing standards related to interoperable devices. (V)

Administrative costs

Not more than 5 percent of the amounts transferred to the Administrator in accordance with subclause (I) may be used for the administrative costs of the National Telecommunications and Information Administration. (VI)

Application

In order to be eligible to receive a grant under this clause, a State or Indian tribe shall submit an application at such time, in such form, and with such information and assurances as the Administrator may require. (VII)

Grant cycles

(aa)

2012

(AA)

In general

Beginning in fiscal year 2012, the Administrator shall award grants to States and Indian tribes to purchase interoperable devices meeting the requirements of subclause (III) or to distribute funds to local public safety entities in order for such entities to use the funds to directly purchase such interoperable devices. (BB)

Total awards

The total amount of grants awarded under subitem (AA) shall not exceed $250,000,000. (bb)

2013 and beyond

(AA)

In general

Beginning in fiscal year 2013 and continuing in each fiscal year thereafter, the Administrator shall award grants to States and Indian tribes to purchase interoperable devices meeting the requirements of subclause (III) or to distribute funds to local public safety entities in order for such entities to use the funds to directly purchase such interoperable devices. (BB)

Total awards

The total amount of grants awarded under subitem (AA) shall not exceed 20 percent of the total amount held in the First Responders Interoperable Device Availability Trust Fund, as such amount is determined on the last day of the prior fiscal year. (cc)

Formula

Any funds distributed under item (aa) or item (bb) shall be based on a formula established by the Administrator. (dd)

Baseline amounts

Any formula developed by the Administrator under item (cc), shall ensure that— (AA)each State (excluding territories and possessions) shall receive, at a minimum, an amount equal to .50 percent of the total funds made available under this clause; (BB)each territory shall receive, at a minimum, an amount equal to .05 percent of the total funds made available under this clause; and (CC)each Indian tribe shall receive, at minimum, a fixed amount to be determined by the Administrator. (ee)

Priority distribution of remaining funds

The funds remaining for distribution under this clause after allocation of the baseline amounts under item (dd) shall be distributed to State and Indian Tribes based upon all-hazard risk, unmet financial need, and per capita income criteria established by the Administrator. (VIII)

Distribution of devices or funds to public safety entities

(aa)

In general

Not later than 180 days after receiving grant funds under subclause (I), a State or Indian tribe shall make available— (AA)the interoperable devices purchased with such funds to local public safety entities located in that State or Indian tribe; or (BB)such funds to local public safety entities. (bb)

Application

(AA)

In general

In order to be eligible to receive an interoperable device under this clause, a local public safety entity shall submit an application at such time, in such form, and with such information and assurances as the State or Indian tribe may require. (BB)

Limitation on application for replacement devices

A local public safety entity that receives an interoperable device under this clause may submit an application for additional replacement devices once every 5 years. (cc)

Limitations

(AA)

In general

Grant funds distributed from a State or Indian tribe to a local public safety entity under this clause shall not exceed $1,000 per eligible public safety official under the jurisdiction of such entity. (BB)

Required use of funds

A local public safety entity receiving grant funds from a State or Indian tribe under this clause shall use such funds to purchase interoperable devices that satisfy all the requirements described in subclause (III) and that have been approved by both the State or Indian tribe and the Administrator. (CC)

Priority

A State or Indian tribe that receives grant funds pursuant to this clause shall distribute such funds to local public safety entities based upon all-hazard risk, unmet financial need, and per capita income criteria established by the Administrator. (iii)

Credit

The Administrator may borrow from the Treasury such sums as may be necessary to implement this subparagraph. The Administrator shall reimburse the Treasury, without interest, as funds are deposited into the First Responders Interoperable Device Availability Trust Fund. (iv)

Trust fund

(I)

Trustee and report

The Secretary of the Treasury shall be the trustee of the First Responders Interoperable Device Availability Trust Fund, and shall submit an annual report to the Committee on Finance of the Senate, the Committee on Commerce, Science, and Transportation of the Senate, the Committee on Ways and Means of the House of Representatives, and the Committee on Energy and Commerce of the House of Representatives on— (aa)the financial condition and the results of the operations of the First Responders Interoperable Device Availability Trust Fund during the fiscal year preceding the fiscal year in which such report is submitted; (bb)the results of the investment activities and financial status of the First Responders Interoperable Device Availability Trust Fund during the preceding calendar year; and (cc)the expected condition and operations of the First Responders Interoperable Device Availability Trust Fund during the fiscal year in which such report is submitted and the 5 fiscal years succeeding such fiscal year. (v)

Investment

(I)

In general

The Secretary of the Treasury shall invest such portion of the First Responders Interoperable Device Availability Trust Fund as is not, in his or her judgment, required to meet current withdrawals. Such investments shall be made only in interest-bearing obligations of the United States. For such purpose, such obligations may be acquired— (aa)on original issue at the issue price; or (bb)by purchase of outstanding obligations at the market price. (II)

Sale at market prices

Any obligation acquired by the First Responders Interoperable Device Availability Trust Fund may be sold by the Secretary of the Treasury at the market price. (III)

Interest to be credited to trust fund

The interest on, and the proceeds from the sale or redemption of, any obligations held in the First Responders Interoperable Device Availability Trust Fund shall be credited to and form a part of the Trust Fund. (vi)

Studies

(I)

NTIA report on grant program

Not later than 1 year after the date of enactment of this subparagraph and each year thereafter, the Administrator shall conduct a study and submit a report to the Committee on Commerce, Science, and Transportation of the Senate and the Committee on Energy and Commerce of the House of Representatives— (aa)on the distribution of funds authorized for grants under clause (ii); and (bb)detailing the expenditure of such funds, including the type of interoperable devices purchased with such funds, and whether such devices were purchased— (AA)by the State and distributed to local public safety entities; or (BB)directly by a local public safety entity. (II)

GAO report

Not later than 3 years after the date of enactment of this subparagraph and every 3 years thereafter, the Comptroller General of the United States shall conduct a study and submit a report to the Committee on Commerce, Science, and Transportation of the Senate and the Committee on Energy and Commerce of the House of Representatives on the— (aa)distribution of funds authorized for grants under clause (ii); (bb)expenditure of such funds; (cc)cost of interoperable devices to be used in connection with the interoperable network or networks built to serve public safety within the 700 MHz band, as agreed to by the Public Safety Broadband Licensee, or its successors, and its commercial partners, in accordance with rules and regulations promulgated by the Commission; (dd)adherence of States and Indian tribes to the grant conditions set forth in clause (ii)(I)(bb); (ee)solvency of the First Responders Interoperable Device Availability Trust Fund; and (ff)effectiveness and limitations of, and potential improvements for, the grant program established under this subparagraph. (vii)

Definitions

In this subparagraph, the following definitions shall apply: (I)

Administrator

The term Administrator means the Administrator of the National Telecommunications and Information Administration. (II)

D-block

The term D-block means that part of the electromagnetic spectrum between 758 megahertz and 763 megahertz and 788 megahertz and 793 megahertz. (III)

Device

The term device means a portable or mobile radio device. (IV)

Indian tribe

The term Indian tribe has the same meaning as in section 4(e) of the Indian Self-Determination and Education Assistance Act (25 U.S.C. 450b(e)). (V)

Public safety entity or public safety official

The term public safety entity or public safety official means any entity or person authorized by a State or Indian tribe to protect the safety of life, health, or property. (VI)

State

The term State means each of the several States, the Commonwealth of Puerto Rico, the District of Columbia, and any other territory or other possession of the United States. (VII)

Territory

The term territory means American Samoa, the Republic of Palau, the Federated States of Micronesia, the Marshall Islands, the Commonwealth of the Northern Mariana Islands, the United States Virgin Islands, and Guam.