[Congressional Bills 112th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3630 Enrolled Bill (ENR)]
H.R.3630
One Hundred Twelfth Congress
of the
United States of America
AT THE SECOND SESSION
Begun and held at the City of Washington on Tuesday,
the third day of January, two thousand and twelve
An Act
To provide incentives for the creation of jobs, 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; TABLE OF CONTENTS.
(a) Short Title.--This Act may be cited as the ``Middle Class Tax
Relief and Job Creation Act of 2012''.
(b) Table of Contents.--The table of contents for this Act is as
follows:
Sec. 1. Short title; table of contents.
TITLE I--EXTENSION OF PAYROLL TAX REDUCTION
Sec. 1001. Extension of payroll tax reduction.
TITLE II--UNEMPLOYMENT BENEFIT CONTINUATION AND PROGRAM IMPROVEMENT
Sec. 2001. Short title.
Subtitle A--Reforms of Unemployment Compensation to Promote Work and Job
Creation
Sec. 2101. Consistent job search requirements.
Sec. 2102. State flexibility to promote the reemployment of unemployed
workers.
Sec. 2103. Improving program integrity by better recovery of
overpayments.
Sec. 2104. Data exchange standardization for improved interoperability.
Sec. 2105. Drug testing of applicants.
Subtitle B--Provisions Relating To Extended Benefits
Sec. 2121. Short title.
Sec. 2122. Extension and modification of emergency unemployment
compensation program.
Sec. 2123. Temporary extension of extended benefit provisions.
Sec. 2124. Additional extended unemployment benefits under the Railroad
Unemployment Insurance Act.
Subtitle C--Improving Reemployment Strategies Under the Emergency
Unemployment Compensation Program
Sec. 2141. Improved work search for the long-term unemployed.
Sec. 2142. Reemployment services and reemployment and eligibility
assessment activities.
Sec. 2143. Promoting program integrity through better recovery of
overpayments.
Sec. 2144. Restore State flexibility to improve unemployment program
solvency.
Subtitle D--Short-Time Compensation Program
Sec. 2160. Short title.
Sec. 2161. Treatment of short-time compensation programs.
Sec. 2162. Temporary financing of short-time compensation payments in
States with programs in law.
Sec. 2163. Temporary financing of short-time compensation agreements.
Sec. 2164. Grants for short-time compensation programs.
Sec. 2165. Assistance and guidance in implementing programs.
Sec. 2166. Reports.
Subtitle E--Self-Employment Assistance
Sec. 2181. State administration of self-employment assistance programs.
Sec. 2182. Grants for self-employment assistance programs.
Sec. 2183. Assistance and guidance in implementing self-employment
assistance programs.
Sec. 2184. Definitions.
TITLE III--MEDICARE AND OTHER HEALTH PROVISIONS
Subtitle A--Medicare Extensions
Sec. 3001. Extension of MMA section 508 reclassifications.
Sec. 3002. Extension of outpatient hold harmless payments.
Sec. 3003. Physician payment update.
Sec. 3004. Work geographic adjustment.
Sec. 3005. Payment for outpatient therapy services.
Sec. 3006. Payment for technical component of certain physician
pathology services.
Sec. 3007. Ambulance add-on payments.
Subtitle B--Other Health Provisions
Sec. 3101. Qualifying individual program.
Sec. 3102. Transitional medical assistance.
Subtitle C--Health Offsets
Sec. 3201. Reduction of bad debt treated as an allowable cost.
Sec. 3202. Rebase Medicare clinical laboratory payment rates.
Sec. 3203. Rebasing State DSH allotments for fiscal year 2021.
Sec. 3204. Technical correction to the disaster recovery FMAP provision.
Sec. 3205. Prevention and Public Health Fund.
TITLE IV--TANF EXTENSION
Sec. 4001. Short title.
Sec. 4002. Extension of program.
Sec. 4003. Data exchange standardization for improved interoperability.
Sec. 4004. Spending policies for assistance under State TANF programs.
Sec. 4005. Technical corrections.
TITLE V--FEDERAL EMPLOYEES RETIREMENT
Sec. 5001. Increase in contributions to Federal Employees' Retirement
System for new employees.
Sec. 5002. Foreign Service Pension System.
Sec. 5003. Central Intelligence Agency Retirement and Disability System.
TITLE VI--PUBLIC SAFETY COMMUNICATIONS AND ELECTROMAGNETIC SPECTRUM
AUCTIONS
Sec. 6001. Definitions.
Sec. 6002. Rule of construction.
Sec. 6003. Enforcement.
Sec. 6004. National security restrictions on use of funds and auction
participation.
Subtitle A--Reallocation of Public Safety Spectrum
Sec. 6101. Reallocation of D block to public safety.
Sec. 6102. Flexible use of narrowband spectrum.
Sec. 6103. 470-512 MHz public safety spectrum.
Subtitle B--Governance of Public Safety Spectrum
Sec. 6201. Single public safety wireless network licensee.
Sec. 6202. Public safety broadband network.
Sec. 6203. Public Safety Interoperability Board.
Sec. 6204. Establishment of the First Responder Network Authority.
Sec. 6205. Advisory committees of the First Responder Network Authority.
Sec. 6206. Powers, duties, and responsibilities of the First Responder
Network Authority.
Sec. 6207. Initial funding for the First Responder Network Authority.
Sec. 6208. Permanent self-funding; duty to assess and collect fees for
network use.
Sec. 6209. Audit and report.
Sec. 6210. Annual report to Congress.
Sec. 6211. Public safety roaming and priority access.
Sec. 6212. Prohibition on direct offering of commercial
telecommunications service directly to consumers.
Sec. 6213. Provision of technical assistance.
Subtitle C--Public Safety Commitments
Sec. 6301. State and Local Implementation Fund.
Sec. 6302. State and local implementation.
Sec. 6303. Public safety wireless communications research and
development.
Subtitle D--Spectrum Auction Authority
Sec. 6401. Deadlines for auction of certain spectrum.
Sec. 6402. General authority for incentive auctions.
Sec. 6403. Special requirements for incentive auction of broadcast TV
spectrum.
Sec. 6404. Certain conditions on auction participation prohibited.
Sec. 6405. Extension of auction authority.
Sec. 6406. Unlicensed use in the 5 GHz band.
Sec. 6407. Guard bands and unlicensed use.
Sec. 6408. Study on receiver performance and spectrum efficiency.
Sec. 6409. Wireless facilities deployment.
Sec. 6410. Functional responsibility of NTIA to ensure efficient use of
spectrum.
Sec. 6411. System certification.
Sec. 6412. Deployment of 11 GHz, 18 GHz, and 23 GHz microwave bands.
Sec. 6413. Public Safety Trust Fund.
Sec. 6414. Study on emergency communications by amateur radio and
impediments to amateur radio communications.
Subtitle E--Next Generation 9-1-1 Advancement Act of 2012
Sec. 6501. Short title.
Sec. 6502. Definitions.
Sec. 6503. Coordination of 9-1-1 implementation.
Sec. 6504. Requirements for multi-line telephone systems.
Sec. 6505. GAO study of State and local use of 9-1-1 service charges.
Sec. 6506. Parity of protection for provision or use of Next Generation
9-1-1 services.
Sec. 6507. Commission proceeding on autodialing.
Sec. 6508. Report on costs for requirements and specifications of Next
Generation 9-1-1 services.
Sec. 6509. Commission recommendations for legal and statutory framework
for Next Generation 9-1-1 services.
Subtitle F--Telecommunications Development Fund
Sec. 6601. No additional Federal funds.
Sec. 6602. Independence of the Fund.
Subtitle G--Federal Spectrum Relocation
Sec. 6701. Relocation of and spectrum sharing by Federal Government
stations.
Sec. 6702. Spectrum Relocation Fund.
Sec. 6703. National security and other sensitive information.
TITLE VII--MISCELLANEOUS PROVISIONS
Sec. 7001. Repeal of certain shifts in the timing of corporate estimated
tax payments.
Sec. 7002. Repeal of requirement relating to time for remitting certain
merchandise processing fees.
Sec. 7003. Treatment for PAYGO purposes.
TITLE I--EXTENSION OF PAYROLL TAX REDUCTION
SEC. 1001. EXTENSION OF PAYROLL TAX REDUCTION.
(a) In General.--Subsection (c) of section 601 of the Tax Relief,
Unemployment Insurance Reauthorization, and Job Creation Act of 2010
(26 U.S.C. 1401 note) is amended to read as follows:
``(c) Payroll Tax Holiday Period.--The term `payroll tax holiday
period' means calendar years 2011 and 2012.''.
(b) Conforming Amendments.--Section 601 of such Act (26 U.S.C. 1401
note) is amended by striking subsections (f) and (g).
(c) Effective Date.--The amendments made by this section shall
apply to remuneration received, and taxable years beginning, after
December 31, 2011.
TITLE II--UNEMPLOYMENT BENEFIT CONTINUATION AND PROGRAM IMPROVEMENT
SEC. 2001. SHORT TITLE.
This title may be cited as the ``Extended Benefits, Reemployment,
and Program Integrity Improvement Act''.
Subtitle A--Reforms of Unemployment Compensation to Promote Work and
Job Creation
SEC. 2101. CONSISTENT JOB SEARCH REQUIREMENTS.
(a) In General.--Section 303(a) of the Social Security Act is
amended by adding at the end the following:
``(12) A requirement that, as a condition of eligibility for
regular compensation for any week, a claimant must be able to work,
available to work, and actively seeking work.''.
(b) Effective Date.--The amendment made by subsection (a) shall
apply to weeks beginning after the end of the first session of the
State legislature which begins after the date of enactment of this Act.
SEC. 2102. STATE FLEXIBILITY TO PROMOTE THE REEMPLOYMENT OF UNEMPLOYED
WORKERS.
Title III of the Social Security Act (42 U.S.C. 501 and following)
is amended by adding at the end the following:
``demonstration projects
``Sec. 305. (a) The Secretary of Labor may enter into agreements,
with up to 10 States that submit an application described in subsection
(b), for the purpose of allowing such States to conduct demonstration
projects to test and evaluate measures designed--
``(1) to expedite the reemployment of individuals who have
established a benefit year and are otherwise eligible to claim
unemployment compensation under the State law of such State; or
``(2) to improve the effectiveness of a State in carrying out
its State law with respect to reemployment.
``(b) The Governor of any State desiring to conduct a demonstration
project under this section shall submit an application to the Secretary
of Labor. Any such application shall include--
``(1) a general description of the proposed demonstration
project, including the authority (under the laws of the State) for
the measures to be tested, as well as the period of time during
which such demonstration project would be conducted;
``(2) if a waiver under subsection (c) is requested, a
statement describing the specific aspects of the project to which
the waiver would apply and the reasons why such waiver is needed;
``(3) a description of the goals and the expected programmatic
outcomes of the demonstration project, including how the project
would contribute to the objective described in subsection (a)(1),
subsection (a)(2), or both;
``(4) assurances (accompanied by supporting analysis) that the
demonstration project would operate for a period of at least 1
calendar year and not result in any increased net costs to the
State's account in the Unemployment Trust Fund;
``(5) a description of the manner in which the State--
``(A) will conduct an impact evaluation, using a
methodology appropriate to determine the effects of the
demonstration project, including on individual skill levels,
earnings, and employment retention; and
``(B) will determine the extent to which the goals and
outcomes described in paragraph (3) were achieved;
``(6) assurances that the State will provide any reports
relating to the demonstration project, after its approval, as the
Secretary of Labor may require; and
``(7) assurances that employment meets the State's suitable
work requirement and the requirements of section 3304(a)(5) of the
Internal Revenue Code of 1986.
``(c) The Secretary of Labor may waive any of the requirements of
section 3304(a)(4) of the Internal Revenue Code of 1986 or of paragraph
(1) or (5) of section 303(a), to the extent and for the period the
Secretary of Labor considers necessary to enable the State to carry out
a demonstration project under this section.
``(d) A demonstration project under this section--
``(1) may be commenced any time after the date of enactment of
this section;
``(2) may not be approved for a period of time greater than 3
years; and
``(3) must be completed by not later than December 31, 2015.
``(e) Activities that may be pursued under a demonstration project
under this section are limited to--
``(1) subsidies for employer-provided training, such as wage
subsidies; and
``(2) direct disbursements to employers who hire individuals
receiving unemployment compensation, not to exceed the weekly
benefit amount for each such individual, to pay part of the cost of
wages that exceed the unemployed individual's prior benefit level.
``(f) The Secretary of Labor shall, in the case of any State for
which an application is submitted under subsection (b)--
``(1) notify the State as to whether such application has been
approved or denied within 30 days after receipt of a complete
application; and
``(2) provide public notice of the decision within 10 days
after providing notification to the State in accordance with
paragraph (1).
Public notice under paragraph (2) may be provided through the Internet
or other appropriate means. Any application under this section that has
not been denied within the 30-day period described in paragraph (1)
shall be deemed approved, and public notice of any approval under this
sentence shall be provided within 10 days thereafter.
``(g) The Secretary of Labor may terminate a demonstration project
under this section if the Secretary determines that the State has
violated the substantive terms or conditions of the project.
``(h) Funding certified under section 302(a) may be used for an
approved demonstration project.''.
SEC. 2103. IMPROVING PROGRAM INTEGRITY BY BETTER RECOVERY OF
OVERPAYMENTS.
(a) Use of Unemployment Compensation to Repay Overpayments.--
Section 3304(a)(4)(D) of the Internal Revenue Code of 1986 and section
303(g)(1) of the Social Security Act are each amended by striking
``may'' and inserting ``shall''.
(b) Use of Unemployment Compensation to Repay Federal Additional
Compensation Overpayments.--Section 303(g)(3) of the Social Security
Act is amended by inserting ``Federal additional compensation,'' after
``trade adjustment allowances,''.
(c) Effective Date.--The amendments made by this section shall
apply to weeks beginning after the end of the first session of the
State legislature which begins after the date of enactment of this Act.
SEC. 2104. DATA EXCHANGE STANDARDIZATION FOR IMPROVED INTEROPERABILITY.
(a) In General.--Title IX of the Social Security Act is amended by
adding at the end the following:
``DATA EXCHANGE STANDARDIZATION FOR IMPROVED INTEROPERABILITY
``Data Exchange Standards
``Sec. 911. (a)(1) The Secretary of Labor, in consultation with an
interagency work group which shall be established by the Office of
Management and Budget, and considering State and employer perspectives,
shall, by rule, designate a data exchange standard for any category of
information required under title III, title XII, or this title.
``(2) Data exchange standards designated under paragraph (1) shall,
to the extent practicable, be nonproprietary and interoperable.
``(3) In designating data exchange standards under this subsection,
the Secretary of Labor shall, to the extent practicable, incorporate--
``(A) interoperable standards developed and maintained by an
international voluntary consensus standards body, as defined by the
Office of Management and Budget, such as the International
Organization for Standardization;
``(B) interoperable standards developed and maintained by
intergovernmental partnerships, such as the National Information
Exchange Model; and
``(C) interoperable standards developed and maintained by
Federal entities with authority over contracting and financial
assistance, such as the Federal Acquisition Regulations Council.
``Data Exchange Standards for Reporting
``(b)(1) The Secretary of Labor, in consultation with an
interagency work group established by the Office of Management and
Budget, and considering State and employer perspectives, shall, by
rule, designate data exchange standards to govern the reporting
required under title III, title XII, or this title.
``(2) The data exchange standards required by paragraph (1) shall,
to the extent practicable--
``(A) incorporate a widely accepted, nonproprietary,
searchable, computer-readable format;
``(B) be consistent with and implement applicable accounting
principles; and
``(C) be capable of being continually upgraded as necessary.
``(3) In designating reporting standards under this subsection, the
Secretary of Labor shall, to the extent practicable, incorporate
existing nonproprietary standards, such as the eXtensible Markup
Language.''.
(b) Effective Dates.--
(1) Data exchange standards.--The Secretary of Labor shall
issue a proposed rule under section 911(a)(1) of the Social
Security Act (as added by subsection (a)) within 12 months after
the date of the enactment of this section, and shall issue a final
rule under such section 911(a)(1), after public comment, within 24
months after such date of enactment.
(2) Data reporting standards.--The reporting standards required
under section 911(b)(1) of such Act (as so added) shall become
effective with respect to reports required in the first reporting
period, after the effective date of the final rule referred to in
paragraph (1) of this subsection, for which the authority for data
collection and reporting is established or renewed under the
Paperwork Reduction Act.
SEC. 2105. DRUG TESTING OF APPLICANTS.
Section 303 of the Social Security Act is amended by adding at the
end the following:
``(l)(1) Nothing in this Act or any other provision of Federal law
shall be considered to prevent a State from enacting legislation to
provide for--
``(A) testing an applicant for unemployment compensation for
the unlawful use of controlled substances as a condition for
receiving such compensation, if such applicant--
``(i) was terminated from employment with the applicant's
most recent employer (as defined under the State law) because
of the unlawful use of controlled substances; or
``(ii) is an individual for whom suitable work (as defined
under the State law) is only available in an occupation that
regularly conducts drug testing (as determined under
regulations issued by the Secretary of Labor); or
``(B) denying such compensation to such applicant on the basis
of the result of the testing conducted by the State under
legislation described in subparagraph (A).
``(2) For purposes of this subsection--
``(A) the term `unemployment compensation' has the meaning
given such term in subsection (d)(2)(A); and
``(B) the term `controlled substance' has the meaning given
such term in section 102 of the Controlled Substances Act (21
U.S.C. 802).''.
Subtitle B--Provisions Relating To Extended Benefits
SEC. 2121. SHORT TITLE.
This subtitle may be cited as the ``Unemployment Benefits Extension
Act of 2012''.
SEC. 2122. EXTENSION AND MODIFICATION OF EMERGENCY UNEMPLOYMENT
COMPENSATION PROGRAM.
(a) Extension.--Section 4007 of the Supplemental Appropriations
Act, 2008 (Public Law 110-252; 26 U.S.C. 3304 note) is amended--
(1) in subsection (a)--
(A) by striking ``Except as provided in subsection (b),
an'' and inserting ``An''; and
(B) by striking ``March 6, 2012'' and inserting ``January
2, 2013''; and
(2) by striking subsection (b) and inserting the following:
``(b) Termination.--No compensation under this title shall be
payable for any week subsequent to the last week described in
subsection (a).''.
(b) Modifications Relating to Triggers.--
(1) For second-tier emergency unemployment compensation.--
Section 4002(c) of such Act is amended--
(A) in the subsection heading, by striking ``Special Rule''
and inserting ``Second-tier Emergency Unemployment
Compensation'';
(B) in paragraph (1), by striking ``At'' and all that
follows through ``augmented by an amount'' and inserting ``If,
at the time that the amount established in an individual's
account under subsection (b) is exhausted or at any time
thereafter, such individual's State is in an extended benefit
period (as determined under paragraph (2)), such account shall
be augmented by an amount (hereinafter `second-tier emergency
unemployment compensation')'';
(C) by redesignating paragraph (2) as paragraph (4); and
(D) by inserting after paragraph (1) the following:
``(2) Extended benefit period.--For purposes of paragraph (1),
a State shall be considered to be in an extended benefit period, as
of any given time, if such a period would then be in effect for
such State under such Act if--
``(A) section 203(f) of the Federal-State Extended
Unemployment Compensation Act of 1970 were applied to such
State (regardless of whether the State by law had provided for
such application); and
``(B) such section 203(f)--
``(i) were applied by substituting the applicable
percentage under paragraph (3) for `6.5 percent' in
paragraph (1)(A)(i) thereof; and
``(ii) did not include the requirement under paragraph
(1)(A)(ii) thereof.
``(3) Applicable percentage.--The applicable percentage under
this paragraph is, for purposes of determining if a State is in an
extended benefit period as of a date occurring in a week ending--
``(A) before June 1, 2012, 0 percent; and
``(B) after the last week under subparagraph (A), 6
percent.''.
(2) For third-tier emergency unemployment compensation.--
Section 4002(d) of such Act is amended--
(A) in paragraph (2)(A), by striking ``under such Act'' and
inserting ``under the Federal-State Extended Unemployment
Compensation Act of 1970'';
(B) in paragraph (2)(B)(ii)(I), by striking the matter
after ``substituting'' and before ``in paragraph (1)(A)(i)
thereof'' and inserting ``the applicable percentage under
paragraph (3) for `6.5 percent''';
(C) by redesignating paragraph (3) as paragraph (4); and
(D) by inserting after paragraph (2) the following:
``(3) Applicable percentage.--The applicable percentage under
this paragraph is, for purposes of determining if a State is in an
extended benefit period as of a date occurring in a week ending--
``(A) before June 1, 2012, 6 percent; and
``(B) after the last week under subparagraph (A), 7
percent.''.
(3) For fourth-tier emergency unemployment compensation.--
Section 4002(e) of such Act is amended--
(A) in paragraph (2)(A), by striking ``under such Act'' and
inserting ``under the Federal-State Extended Unemployment
Compensation Act of 1970'';
(B) in paragraph (2)(B)(ii)(I), by striking the matter
after ``substituting'' and before ``in paragraph (1)(A)(i)
thereof'' and inserting ``the applicable percentage under
paragraph (3) for `6.5 percent''';
(C) by redesignating paragraph (3) as paragraph (4); and
(D) by inserting after paragraph (2) the following:
``(3) Applicable percentage.--The applicable percentage under
this paragraph is, for purposes of determining if a State is in an
extended benefit period as of a date occurring in a week ending--
``(A) before June 1, 2012, 8.5 percent; and
``(B) after the last week under subparagraph (A), 9
percent.''.
(c) Modifications Relating to Weeks of Emergency Unemployment
Compensation.--
(1) Number of weeks in first tier beginning after september 2,
2012.--Section 4002(b) of such Act is amended--
(A) by redesignating paragraph (2) as paragraph (3); and
(B) by inserting after paragraph (1) the following:
``(2) Special rule relating to amounts established in an
account as of a week ending after september 2, 2012.--
Notwithstanding any provision of paragraph (1), in the case of any
account established as of a week ending after September 2, 2012--
``(A) paragraph (1)(A) shall be applied by substituting `54
percent' for `80 percent'; and
``(B) paragraph (1)(B) shall be applied by substituting `14
weeks' for `20 weeks'.''.
(2) Number of weeks in third tier beginning after september 2,
2012.--Section 4002(d) of such Act is amended by adding after
paragraph (4) (as so redesignated by subsection (b)(2)(C)) the
following:
``(5) Special rule relating to amounts added to an account as
of a week ending after september 2, 2012.--Notwithstanding any
provision of paragraph (1), if augmentation under this subsection
occurs as of a week ending after September 2, 2012--
``(A) paragraph (1)(A) shall be applied by substituting `35
percent' for `50 percent'; and
``(B) paragraph (1)(B) shall be applied by substituting `9
times' for `13 times'.''.
(3) Number of weeks in fourth tier.--Section 4002(e) of such
Act is amended by adding after paragraph (4) (as so redesignated by
subsection (b)(3)(C)) the following:
``(5) Special rules relating to amounts added to an account.--
``(A) March to may of 2012.--
``(i) Special rule.--Notwithstanding any provision of
paragraph (1) but subject to the following 2 sentences, if
augmentation under this subsection occurs as of a week
ending after the date of enactment of this paragraph and
before June 1, 2012 (or if, as of such date of enactment,
any fourth-tier amounts remain in the individual's
account)--
``(I) paragraph (1)(A) shall be applied by
substituting `62 percent' for `24 percent'; and
``(II) paragraph (1)(B) shall be applied by
substituting `16 times' for `6 times'.
The preceding sentence shall apply only if, at the time
that the account would be augmented under this
subparagraph, such individual's State is not in an extended
benefit period as determined under the Federal-State
Extended Unemployment Compensation Act of 1970. In no event
shall the total amount added to the account of an
individual under this subparagraph cause, in the case of an
individual described in the parenthetical matter in the
first sentence of this clause, the sum of the total amount
previously added to such individual's account under this
subsection (as in effect before the date of enactment of
this paragraph) and any further amounts added as a result
of the enactment of this clause, to exceed the total amount
allowable under subclause (I) or (II), as the case may be.
``(ii) Limitation.--Notwithstanding any other provision
of this title, the amounts added to the account of an
individual under this subparagraph may not cause the sum of
the amounts previously established in or added to such
account, plus any weeks of extended benefits provided to
such individual under the Federal-State Extended
Unemployment Compensation Act of 1970 (based on the same
exhaustion of regular compensation under section
4001(b)(1)), to in the aggregate exceed the lesser of--
``(I) 282 percent of the total amount of regular
compensation (including dependents' allowances) payable
to the individual during the individual's benefit year
under the State law; or
``(II) 73 times the individual's average weekly
benefit amount (as determined under subsection (b)(3))
for the benefit year.
``(B) After august of 2012.--Notwithstanding any provision
of paragraph (1), if augmentation under this subsection occurs
as of a week ending after September 2, 2012--
``(i) paragraph (1)(A) shall be applied by substituting
`39 percent' for `24 percent'; and
``(ii) paragraph (1)(B) shall be applied by
substituting `10 times' for `6 times'.''.
(d) Order of Payments Requirement.--
(1) In general.--Section 4001(e) of such Act is amended to read
as follows:
``(e) Coordination Rule.--An agreement under this section shall
apply with respect to a State only upon a determination by the
Secretary that, under the State law or other applicable rules of such
State, the payment of extended compensation for which an individual is
otherwise eligible must be deferred until after the payment of any
emergency unemployment compensation under section 4002, as amended by
the Unemployment Benefits Extension Act of 2012, for which the
individual is concurrently eligible.''.
(2) Technical and conforming amendments.--Section 4001(b)(2) of
such Act is amended--
(A) by striking ``or extended compensation''; and
(B) by striking ``law (except as provided under subsection
(e));'' and inserting ``law;''.
(e) Funding.--Section 4004(e)(1) of such Act is amended--
(1) in subparagraph (G), by striking ``and'' at the end; and
(2) by inserting after subparagraph (H) the following:
``(I) the amendments made by section 2122 of the
Unemployment Benefits Extension Act of 2012; and''.
(f) Effective Dates.--
(1) In general.--The amendments made by subsections (b), (c),
and (d) shall take effect as of February 28, 2012, and shall apply
with respect to weeks of unemployment beginning after that date.
(2) Week defined.--For purposes of this subsection, the term
``week'' has the meaning given such term under section 4006 of the
Supplemental Appropriations Act, 2008.
SEC. 2123. TEMPORARY EXTENSION OF EXTENDED BENEFIT PROVISIONS.
(a) In General.--Section 2005 of the Assistance for Unemployed
Workers and Struggling Families Act, as contained in Public Law 111-5
(26 U.S.C. 3304 note), is amended--
(1) by striking ``March 7, 2012'' each place it appears and
inserting ``December 31, 2012''; and
(2) in subsection (c), by striking ``August 15, 2012'' and
inserting ``June 30, 2013''.
(b) Extension of Matching for States With No Waiting Week.--Section
5 of the Unemployment Compensation Extension Act of 2008 (Public Law
110-449; 26 U.S.C. 3304 note) is amended by striking ``August 15,
2012'' and inserting ``June 30, 2013''.
(c) Extension of Modification of Indicators Under the Extended
Benefit Program.--Section 203 of the Federal-State Extended
Unemployment Compensation Act of 1970 (26 U.S.C. 3304 note) is
amended--
(1) in subsection (d), by striking ``February 29, 2012'' and
inserting ``December 31, 2012''; and
(2) in subsection (f)(2), by striking ``February 29, 2012'' and
inserting ``December 31, 2012''.
(d) Effective Date.--The amendments made by this section shall take
effect as if included in the enactment of the Temporary Payroll Tax Cut
Continuation Act of 2011 (Public Law 112-78).
SEC. 2124. ADDITIONAL EXTENDED UNEMPLOYMENT BENEFITS UNDER THE RAILROAD
UNEMPLOYMENT INSURANCE ACT.
(a) Extension.--Section 2(c)(2)(D)(iii) of the Railroad
Unemployment Insurance Act, as added by section 2006 of the American
Recovery and Reinvestment Act of 2009 (Public Law 111-5) and as amended
by section 9 of the Worker, Homeownership, and Business Assistance Act
of 2009 (Public Law 111-92), section 505 of the Tax Relief,
Unemployment Insurance Reauthorization, and Job Creation Act of 2010
(Public Law 111-312), and section 202 of the Temporary Payroll Tax Cut
Continuation Act of 2011 (Public Law 112-78), is amended--
(1) by striking ``August 31, 2011'' and inserting ``June 30,
2012''; and
(2) by striking ``February 29, 2012'' and inserting ``December
31, 2012''.
(b) Clarification on Authority to Use Funds.--Funds appropriated
under either the first or second sentence of clause (iv) of section
2(c)(2)(D) of the Railroad Unemployment Insurance Act shall be
available to cover the cost of additional extended unemployment
benefits provided under such section 2(c)(2)(D) by reason of the
amendments made by subsection (a) as well as to cover the cost of such
benefits provided under such section 2(c)(2)(D), as in effect on the
day before the date of enactment of this Act.
(c) Funding for Administration.--Out of any funds in the Treasury
not otherwise appropriated, there are appropriated to the Railroad
Retirement Board $500,000 for administrative expenses associated with
the payment of additional extended unemployment benefits provided under
section 2(c)(2)(D) of the Railroad Unemployment Insurance Act by reason
of the amendments made by subsection (a), to remain available until
expended.
Subtitle C--Improving Reemployment Strategies Under the Emergency
Unemployment Compensation Program
SEC. 2141. IMPROVED WORK SEARCH FOR THE LONG-TERM UNEMPLOYED.
(a) In General.--Section 4001(b) of the Supplemental Appropriations
Act, 2008 (Public Law 110-252; 26 U.S.C. 3304 note) is amended--
(1) by striking ``and'' at the end of paragraph (2);
(2) by striking the period at the end of paragraph (3) and
inserting ``; and''; and
(3) by adding at the end the following:
``(4) are able to work, available to work, and actively seeking
work.''.
(b) Actively Seeking Work.--Section 4001 of such Act is amended by
adding at the end the following:
``(h) Actively Seeking Work.--
``(1) In general.--For purposes of subsection (b)(4), the term
`actively seeking work' means, with respect to any individual, that
such individual--
``(A) is registered for employment services in such a
manner and to such extent as prescribed by the State agency;
``(B) has engaged in an active search for employment that
is appropriate in light of the employment available in the
labor market, the individual's skills and capabilities, and
includes a number of employer contacts that is consistent with
the standards communicated to the individual by the State;
``(C) has maintained a record of such work search,
including employers contacted, method of contact, and date
contacted; and
``(D) when requested, has provided such work search record
to the State agency.
``(2) Random auditing.--The Secretary shall establish for each
State a minimum number of claims for which work search records must
be audited on a random basis in any given week.''.
SEC. 2142. REEMPLOYMENT SERVICES AND REEMPLOYMENT AND ELIGIBILITY
ASSESSMENT ACTIVITIES.
(a) Provision of Services and Activities.--Section 4001 of such
Act, as amended by section 2141(b), is further amended by adding at the
end the following:
``(i) Provision of Services and Activities.--
``(1) In general.--An agreement under this section shall
require the following:
``(A) The State which is party to such agreement shall
provide reemployment services and reemployment and eligibility
assessment activities to each individual--
``(i) who, on or after the 30th day after the date of
enactment of the Extended Benefits, Reemployment, and
Program Integrity Improvement Act, begins receiving amounts
described in subsections (b) and (c); and
``(ii) while such individual continues to receive
emergency unemployment compensation under this title.
``(B) As a condition of eligibility for emergency
unemployment compensation for any week--
``(i) a claimant who has been duly referred to
reemployment services shall participate in such services;
and
``(ii) a claimant shall be actively seeking work
(determined applying subsection (i)).
``(2) Description of services and activities.--The reemployment
services and in-person reemployment and eligibility assessment
activities provided to individuals receiving emergency unemployment
compensation described in paragraph (1)--
``(A) shall include--
``(i) the provision of labor market and career
information;
``(ii) an assessment of the skills of the individual;
``(iii) orientation to the services available through
the one-stop centers established under title I of the
Workforce Investment Act of 1998; and
``(iv) review of the eligibility of the individual for
emergency unemployment compensation relating to the job
search activities of the individual; and
``(B) may include the provision of--
``(i) comprehensive and specialized assessments;
``(ii) individual and group career counseling;
``(iii) training services;
``(iv) additional reemployment services; and
``(v) job search counseling and the development or
review of an individual reemployment plan that includes
participation in job search activities and appropriate
workshops.
``(3) Participation requirement.--As a condition of continuing
eligibility for emergency unemployment compensation for any week,
an individual who has been referred to reemployment services or
reemployment and eligibility assessment activities under this
subsection shall participate in such services or activities, unless
the State agency responsible for the administration of State
unemployment compensation law determines that--
``(A) such individual has completed participating in such
services or activities; or
``(B) there is justifiable cause for failure to participate
or to complete participating in such services or activities, as
determined in accordance with guidance to be issued by the
Secretary.''.
(b) Issuance of Guidance.--Not later than 30 days after the date of
enactment of this Act, the Secretary shall issue guidance on the
implementation of the reemployment services and reemployment and
eligibility assessment activities required to be provided under the
amendment made by subsection (a).
(c) Funding.--
(1) In general.--Section 4004(c) of the Supplemental
Appropriations Act, 2008 (Public Law 110-252; 26 U.S.C. 3304 note)
is amended--
(A) by striking ``States.--There'' and inserting the
following: ``States.--
``(1) Administration.--There''; and
(B) by adding at the end the following new paragraph:
``(2) Reemployment services and reemployment and eligibility
assessment activities.--
``(A) Appropriation.--There are appropriated from the
general fund of the Treasury, for the period of fiscal year
2012 through fiscal year 2013, out of the employment security
administration account (as established by section 901(a) of the
Social Security Act), such sums as determined by the Secretary
of Labor in accordance with subparagraph (B) to assist States
in providing reemployment services and reemployment and
eligibility assessment activities described in section
4001(h)(2).
``(B) Determination of total amount.--The amount referred
to in subparagraph (A) is the amount the Secretary of Labor
estimates is equal to--
``(i) the number of individuals who will receive
reemployment services and reemployment eligibility and
assessment activities described in section 4001(h)(2) in
all States through the date specified in section
4007(b)(3); multiplied by
``(ii) $85.
``(C) Distribution among states.--Of the amounts
appropriated under subparagraph (A), the Secretary of Labor
shall distribute amounts to each State, in accordance with
section 4003(c), that the Secretary estimates is equal to--
``(i) the number of individuals who will receive
reemployment services and reemployment and eligibility
assessment activities described in section 4001(h)(2) in
such State through the date specified in section
4007(b)(3); multiplied by
``(ii) $85.''.
(2) Transfer of funds.--Section 4004(e) of the Supplemental
Appropriations Act, 2008 (Public Law 110-252; 26 U.S.C. 3304 note)
is amended--
(A) in paragraph (1)(G), by striking ``and'' at the end;
(B) in paragraph (2), by striking the period at the end and
inserting ``; and''; and
(C) by adding at the end the following paragraph:
``(3) to the Employment Security Administration account (as
established by section 901(a) of the Social Security Act) such sums
as the Secretary of Labor determines to be necessary in accordance
with subsection (c)(2) to assist States in providing reemployment
services and reemployment eligibility and assessment activities
described in section 4001(h)(2).''.
SEC. 2143. PROMOTING PROGRAM INTEGRITY THROUGH BETTER RECOVERY OF
OVERPAYMENTS.
Section 4005(c)(1) of the Supplemental Appropriations Act, 2008
(Public Law 110-252; 26 U.S.C. 3304 note) is amended--
(1) by striking ``may'' and inserting ``shall''; and
(2) by striking ``except that'' and all that follows through
``made'' and inserting ``in accordance with the same procedures as
apply to the recovery of overpayments of regular unemployment
benefits paid by the State''.
SEC. 2144. RESTORE STATE FLEXIBILITY TO IMPROVE UNEMPLOYMENT PROGRAM
SOLVENCY.
Subsection (g) of section 4001 of the Supplemental Appropriations
Act, 2008 (Public Law 110-252; 26 U.S.C. 3304 note) shall not apply
with respect to a State that has enacted a law before March 1, 2012,
that, upon taking effect, would violate such subsection.
Subtitle D--Short-Time Compensation Program
SEC. 2160. SHORT TITLE.
This subtitle may be cited as the ``Layoff Prevention Act of
2012''.
SEC. 2161. TREATMENT OF SHORT-TIME COMPENSATION PROGRAMS.
(a) Definition.--
(1) In general.--Section 3306 of the Internal Revenue Code of
1986 (26 U.S.C. 3306) is amended by adding at the end the following
new subsection:
``(v) Short-Time Compensation Program.--For purposes of this part,
the term `short-time compensation program' means a program under
which--
``(1) the participation of an employer is voluntary;
``(2) an employer reduces the number of hours worked by
employees in lieu of layoffs;
``(3) such employees whose workweeks have been reduced by at
least 10 percent, and by not more than the percentage, if any, that
is determined by the State to be appropriate (but in no case more
than 60 percent), are not disqualified from unemployment
compensation;
``(4) the amount of unemployment compensation payable to any
such employee is a pro rata portion of the unemployment
compensation which would otherwise be payable to the employee if
such employee were unemployed;
``(5) such employees meet the availability for work and work
search test requirements while collecting short-time compensation
benefits, by being available for their workweek as required by the
State agency;
``(6) eligible employees may participate, as appropriate, in
training (including employer-sponsored training or worker training
funded under the Workforce Investment Act of 1998) to enhance job
skills if such program has been approved by the State agency;
``(7) the State agency shall require employers to certify that
if the employer provides health benefits and retirement benefits
under a defined benefit plan (as defined in section 414(j)) or
contributions under a defined contribution plan (as defined in
section 414(i)) to any employee whose workweek is reduced under the
program that such benefits will continue to be provided to
employees participating in the short-time compensation program
under the same terms and conditions as though the workweek of such
employee had not been reduced or to the same extent as other
employees not participating in the short-time compensation program;
``(8) the State agency shall require an employer to submit a
written plan describing the manner in which the requirements of
this subsection will be implemented (including a plan for giving
advance notice, where feasible, to an employee whose workweek is to
be reduced) together with an estimate of the number of layoffs that
would have occurred absent the ability to participate in short-time
compensation and such other information as the Secretary of Labor
determines is appropriate;
``(9) the terms of the employer's written plan and
implementation shall be consistent with employer obligations under
applicable Federal and State laws; and
``(10) upon request by the State and approval by the Secretary
of Labor, only such other provisions are included in the State law
that are determined to be appropriate for purposes of a short-time
compensation program.''.
(2) Effective date.--Subject to paragraph (3), the amendment
made by paragraph (1) shall take effect on the date of the
enactment of this Act.
(3) Transition period for existing programs.--In the case of a
State that is administering a short-time compensation program as of
the date of the enactment of this Act and the State law cannot be
administered consistent with the amendment made by paragraph (1),
such amendment shall take effect on the earlier of--
(A) the date the State changes its State law in order to be
consistent with such amendment; or
(B) the date that is 2 years and 6 months after the date of
the enactment of this Act.
(b) Conforming Amendments.--
(1) Internal revenue code of 1986.--
(A) Subparagraph (E) of section 3304(a)(4) of the Internal
Revenue Code of 1986 is amended to read as follows:
``(E) amounts may be withdrawn for the payment of short-
time compensation under a short-time compensation program (as
defined under section 3306(v));''.
(B) Subsection (f) of section 3306 of the Internal Revenue
Code of 1986 is amended--
(i) by striking paragraph (5) (relating to short-time
compensation) and inserting the following new paragraph:
``(5) amounts may be withdrawn for the payment of short-time
compensation under a short-time compensation program (as defined in
subsection (v)); and''; and
(ii) by redesignating paragraph (5) (relating to self-
employment assistance program) as paragraph (6).
(2) Social security act.--Section 303(a)(5) of the Social
Security Act is amended by striking ``the payment of short-time
compensation under a plan approved by the Secretary of Labor'' and
inserting ``the payment of short-time compensation under a short-
time compensation program (as defined in section 3306(v) of the
Internal Revenue Code of 1986)''.
(3) Unemployment compensation amendments of 1992.--Subsections
(b) through (d) of section 401 of the Unemployment Compensation
Amendments of 1992 (26 U.S.C. 3304 note) are repealed.
SEC. 2162. TEMPORARY FINANCING OF SHORT-TIME COMPENSATION PAYMENTS IN
STATES WITH PROGRAMS IN LAW.
(a) Payments to States.--
(1) In general.--Subject to paragraph (3), there shall be paid
to a State an amount equal to 100 percent of the amount of short-
time compensation paid under a short-time compensation program (as
defined in section 3306(v) of the Internal Revenue Code of 1986, as
added by section 2161(a)) under the provisions of the State law.
(2) Terms of payments.--Payments made to a State under
paragraph (1) shall be payable by way of reimbursement in such
amounts as the Secretary estimates the State will be entitled to
receive under this section for each calendar month, reduced or
increased, as the case may be, by any amount by which the Secretary
finds that the Secretary's estimates for any prior calendar month
were greater or less than the amounts which should have been paid
to the State. Such estimates may be made on the basis of such
statistical, sampling, or other method as may be agreed upon by the
Secretary and the State agency of the State involved.
(3) Limitations on payments.--
(A) General payment limitations.--No payments shall be made
to a State under this section for short-time compensation paid
to an individual by the State during a benefit year in excess
of 26 times the amount of regular compensation (including
dependents' allowances) under the State law payable to such
individual for a week of total unemployment.
(B) Employer limitations.--No payments shall be made to a
State under this section for benefits paid to an individual by
the State under a short-time compensation program if such
individual is employed by the participating employer on a
seasonal, temporary, or intermittent basis.
(b) Applicability.--
(1) In general.--Payments to a State under subsection (a) shall
be available for weeks of unemployment--
(A) beginning on or after the date of the enactment of this
Act; and
(B) ending on or before the date that is 3 years and 6
months after the date of the enactment of this Act.
(2) Three-year funding limitation for combined payments under
this section and section 2163.--States may receive payments under
this section and section 2163 with respect to a total of not more
than 156 weeks.
(c) Two-Year Transition Period for Existing Programs.--During any
period that the transition provision under section 2161(a)(3) is
applicable to a State with respect to a short-time compensation
program, such State shall be eligible for payments under this section.
Subject to paragraphs (1)(B) and (2) of subsection (b), if at any point
after the date of the enactment of this Act the State enacts a State
law providing for the payment of short-time compensation under a short-
time compensation program that meets the definition of such a program
under section 3306(v) of the Internal Revenue Code of 1986, as added by
section 2161(a), the State shall be eligible for payments under this
section after the effective date of such enactment.
(d) Funding and Certifications.--
(1) Funding.--There are appropriated, out of moneys in the
Treasury not otherwise appropriated, such sums as may be necessary
for purposes of carrying out this section.
(2) Certifications.--The Secretary shall from time to time
certify to the Secretary of the Treasury for payment to each State
the sums payable to such State under this section.
(e) Definitions.--In this section:
(1) Secretary.--The term ``Secretary'' means the Secretary of
Labor.
(2) State; state agency; state law.--The terms ``State'',
``State agency'', and ``State law'' have the meanings given those
terms in section 205 of the Federal-State Extended Unemployment
Compensation Act of 1970 (26 U.S.C. 3304 note).
SEC. 2163. TEMPORARY FINANCING OF SHORT-TIME COMPENSATION AGREEMENTS.
(a) Federal-State Agreements.--
(1) In general.--Any State which desires to do so may enter
into, and participate in, an agreement under this section with the
Secretary provided that such State's law does not provide for the
payment of short-time compensation under a short-time compensation
program (as defined in section 3306(v) of the Internal Revenue Code
of 1986, as added by section 2161(a)).
(2) Ability to terminate.--Any State which is a party to an
agreement under this section may, upon providing 30 days' written
notice to the Secretary, terminate such agreement.
(b) Provisions of Federal-State Agreement.--
(1) In general.--Any agreement under this section shall provide
that the State agency of the State will make payments of short-time
compensation under a plan approved by the State. Such plan shall
provide that payments are made in accordance with the requirements
under section 3306(v) of the Internal Revenue Code of 1986, as
added by section 2161(a).
(2) Limitations on plans.--
(A) General payment limitations.--A short-time compensation
plan approved by a State shall not permit the payment of short-
time compensation to an individual by the State during a
benefit year in excess of 26 times the amount of regular
compensation (including dependents' allowances) under the State
law payable to such individual for a week of total
unemployment.
(B) Employer limitations.--A short-time compensation plan
approved by a State shall not provide payments to an individual
if such individual is employed by the participating employer on
a seasonal, temporary, or intermittent basis.
(3) Employer payment of costs.--Any short-time compensation
plan entered into by an employer must provide that the employer
will pay the State an amount equal to one-half of the amount of
short-time compensation paid under such plan. Such amount shall be
deposited in the State's unemployment fund and shall not be used
for purposes of calculating an employer's contribution rate under
section 3303(a)(1) of the Internal Revenue Code of 1986.
(c) Payments to States.--
(1) In general.--There shall be paid to each State with an
agreement under this section an amount equal to--
(A) one-half of the amount of short-time compensation paid
to individuals by the State pursuant to such agreement; and
(B) any additional administrative expenses incurred by the
State by reason of such agreement (as determined by the
Secretary).
(2) Terms of payments.--Payments made to a State under
paragraph (1) shall be payable by way of reimbursement in such
amounts as the Secretary estimates the State will be entitled to
receive under this section for each calendar month, reduced or
increased, as the case may be, by any amount by which the Secretary
finds that the Secretary's estimates for any prior calendar month
were greater or less than the amounts which should have been paid
to the State. Such estimates may be made on the basis of such
statistical, sampling, or other method as may be agreed upon by the
Secretary and the State agency of the State involved.
(3) Funding.--There are appropriated, out of moneys in the
Treasury not otherwise appropriated, such sums as may be necessary
for purposes of carrying out this section.
(4) Certifications.--The Secretary shall from time to time
certify to the Secretary of the Treasury for payment to each State
the sums payable to such State under this section.
(d) Applicability.--
(1) In general.--An agreement entered into under this section
shall apply to weeks of unemployment--
(A) beginning on or after the date on which such agreement
is entered into; and
(B) ending on or before the date that is 2 years and 13
weeks after the date of the enactment of this Act.
(2) Two-year funding limitation.--States may receive payments
under this section with respect to a total of not more than 104
weeks.
(e) Special Rule.--If a State has entered into an agreement under
this section and subsequently enacts a State law providing for the
payment of short-time compensation under a short-time compensation
program that meets the definition of such a program under section
3306(v) of the Internal Revenue Code of 1986, as added by section
2161(a), the State--
(1) shall not be eligible for payments under this section for
weeks of unemployment beginning after the effective date of such
State law; and
(2) subject to paragraphs (1)(B) and (2) of section 2162(b),
shall be eligible to receive payments under section 2162 after the
effective date of such State law.
(f) Definitions.--In this section:
(1) Secretary.--The term ``Secretary'' means the Secretary of
Labor.
(2) State; state agency; state law.--The terms ``State'',
``State agency'', and ``State law'' have the meanings given those
terms in section 205 of the Federal-State Extended Unemployment
Compensation Act of 1970 (26 U.S.C. 3304 note).
SEC. 2164. GRANTS FOR SHORT-TIME COMPENSATION PROGRAMS.
(a) Grants.--
(1) For implementation or improved administration.--The
Secretary shall award grants to States that enact short-time
compensation programs (as defined in subsection (i)(2)) for the
purpose of implementation or improved administration of such
programs.
(2) For promotion and enrollment.--The Secretary shall award
grants to States that are eligible and submit plans for a grant
under paragraph (1) for such States to promote and enroll employers
in short-time compensation programs (as so defined).
(3) Eligibility.--
(A) In general.--The Secretary shall determine eligibility
criteria for the grants under paragraphs (1) and (2).
(B) Clarification.--A State administering a short-time
compensation program, including a program being administered by
a State that is participating in the transition under the
provisions of sections 301(a)(3) and 302(c), that does not meet
the definition of a short-time compensation program under
section 3306(v) of the Internal Revenue Code of 1986 (as added
by 211(a)), and a State with an agreement under section 2163,
shall not be eligible to receive a grant under this section
until such time as the State law of the State provides for
payments under a short-time compensation program that meets
such definition and such law.
(b) Amount of Grants.--
(1) In general.--The maximum amount available for making grants
to a State under paragraphs (1) and (2) shall be equal to the
amount obtained by multiplying $100,000,000 (less the amount used
by the Secretary under subsection (e)) by the same ratio as would
apply under subsection (a)(2)(B) of section 903 of the Social
Security Act (42 U.S.C. 1103) for purposes of determining such
State's share of any excess amount (as described in subsection
(a)(1) of such section) that would have been subject to transfer to
State accounts, as of October 1, 2010, under the provisions of
subsection (a) of such section.
(2) Amount available for different grants.--Of the maximum
incentive payment determined under paragraph (1) with respect to a
State--
(A) one-third shall be available for a grant under
subsection (a)(1); and
(B) two-thirds shall be available for a grant under
subsection (a)(2).
(c) Grant Application and Disbursal.--
(1) Application.--Any State seeking a grant under paragraph (1)
or (2) of subsection (a) shall submit an application to the
Secretary at such time, in such manner, and complete with such
information as the Secretary may require. In no case may the
Secretary award a grant under this section with respect to an
application that is submitted after December 31, 2014.
(2) Notice.--The Secretary shall, within 30 days after
receiving a complete application, notify the State agency of the
State of the Secretary's findings with respect to the requirements
for a grant under paragraph (1) or (2) (or both) of subsection (a).
(3) Certification.--If the Secretary finds that the State law
provisions meet the requirements for a grant under subsection (a),
the Secretary shall thereupon make a certification to that effect
to the Secretary of the Treasury, together with a certification as
to the amount of the grant payment to be transferred to the State
account in the Unemployment Trust Fund (as established in section
904(a) of the Social Security Act (42 U.S.C. 1104(a))) pursuant to
that finding. The Secretary of the Treasury shall make the
appropriate transfer to the State account within 7 days after
receiving such certification.
(4) Requirement.--No certification of compliance with the
requirements for a grant under paragraph (1) or (2) of subsection
(a) may be made with respect to any State whose--
(A) State law is not otherwise eligible for certification
under section 303 of the Social Security Act (42 U.S.C. 503) or
approvable under section 3304 of the Internal Revenue Code of
1986; or
(B) short-time compensation program is subject to
discontinuation or is not scheduled to take effect within 12
months of the certification.
(d) Use of Funds.--The amount of any grant awarded under this
section shall be used for the implementation of short-time compensation
programs and the overall administration of such programs and the
promotion and enrollment efforts associated with such programs, such as
through--
(1) the creation or support of rapid response teams to advise
employers about alternatives to layoffs;
(2) the provision of education or assistance to employers to
enable them to assess the feasibility of participating in short-
time compensation programs; and
(3) the development or enhancement of systems to automate--
(A) the submission and approval of plans; and
(B) the filing and approval of new and ongoing short-time
compensation claims.
(e) Administration.--The Secretary is authorized to use 0.25
percent of the funds available under subsection (g) to provide for
outreach and to share best practices with respect to this section and
short-time compensation programs.
(f) Recoupment.--The Secretary shall establish a process under
which the Secretary shall recoup the amount of any grant awarded under
paragraph (1) or (2) of subsection (a) if the Secretary determines
that, during the 5-year period beginning on the first date that any
such grant is awarded to the State, the State--
(1) terminated the State's short-time compensation program; or
(2) failed to meet appropriate requirements with respect to
such program (as established by the Secretary).
(g) Funding.--There are appropriated, out of moneys in the Treasury
not otherwise appropriated, to the Secretary, $100,000,000 to carry out
this section, to remain available without fiscal year limitation.
(h) Reporting.--The Secretary may establish reporting requirements
for States receiving a grant under this section in order to provide
oversight of grant funds.
(i) Definitions.--In this section:
(1) Secretary.--The term ``Secretary'' means the Secretary of
Labor.
(2) Short-time compensation program.--The term ``short-time
compensation program'' has the meaning given such term in section
3306(v) of the Internal Revenue Code of 1986, as added by section
2161(a).
(3) State; state agency; state law.--The terms ``State'',
``State agency'', and ``State law'' have the meanings given those
terms in section 205 of the Federal-State Extended Unemployment
Compensation Act of 1970 (26 U.S.C. 3304 note).
SEC. 2165. ASSISTANCE AND GUIDANCE IN IMPLEMENTING PROGRAMS.
(a) In General.--In order to assist States in establishing,
qualifying, and implementing short-time compensation programs (as
defined in section 3306(v) of the Internal Revenue Code of 1986, as
added by section 2161(a)), the Secretary of Labor (in this section
referred to as the ``Secretary'') shall--
(1) develop model legislative language which may be used by
States in developing and enacting such programs and periodically
review and revise such model legislative language;
(2) provide technical assistance and guidance in developing,
enacting, and implementing such programs;
(3) establish reporting requirements for States, including
reporting on--
(A) the number of estimated averted layoffs;
(B) the number of participating employers and workers; and
(C) such other items as the Secretary of Labor determines
are appropriate.
(b) Model Language and Guidance.--The model language and guidance
developed under subsection (a) shall allow sufficient flexibility by
States and participating employers while ensuring accountability and
program integrity.
(c) Consultation.--In developing the model legislative language and
guidance under subsection (a), and in order to meet the requirements of
subsection (b), the Secretary shall consult with employers, labor
organizations, State workforce agencies, and other program experts.
SEC. 2166. REPORTS.
(a) Report.--
(1) In general.--Not later than 4 years after the date of the
enactment of this Act, the Secretary of Labor shall submit to
Congress and to the President a report or reports on the
implementation of the provisions of this subtitle.
(2) Requirements.--Any report under paragraph (1) shall at a
minimum include the following:
(A) A description of best practices by States and employers
in the administration, promotion, and use of short-time
compensation programs (as defined in section 3306(v) of the
Internal Revenue Code of 1986, as added by section 2161(a)).
(B) An analysis of the significant challenges to State
enactment and implementation of short-time compensation
programs.
(C) A survey of employers in all States to determine the
level of interest in participating in short-time compensation
programs.
(b) Funding.--There are appropriated, out of any moneys in the
Treasury not otherwise appropriated, to the Secretary of Labor,
$1,500,000 to carry out this section, to remain available without
fiscal year limitation.
Subtitle E--Self-Employment Assistance
SEC. 2181. STATE ADMINISTRATION OF SELF-EMPLOYMENT ASSISTANCE PROGRAMS.
(a) Availability for Individuals Receiving Extended Compensation.--
Title II of the Federal-State Extended Unemployment Compensation Act of
1970 (26 U.S.C. 3304 note) is amended by inserting at the end the
following new section:
``authority to conduct self-employment assistance programs
``Sec. 208. (a)(1) At the option of a State, for any weeks of
unemployment beginning after the date of enactment of this section, the
State agency of the State may establish a self-employment assistance
program, as described in subsection (b), to provide for the payment of
extended compensation as self-employment assistance allowances to
individuals who would otherwise satisfy the eligibility criteria under
this title.
``(2) Subject to paragraph (3), the self-employment assistance
allowance described in paragraph (1) shall be paid to an eligible
individual from such individual's extended compensation account, as
described in section 202(b), and the amount in such account shall be
reduced accordingly.
``(3)(A) Subject to subparagraph (B), for purposes of self-
employment assistance programs established under this section and
section 4001(j) of the Supplemental Appropriations Act, 2008, an
individual shall be provided with self-employment assistance allowances
under such programs for a total of not greater than 26 weeks (referred
to in this section as the `combined eligibility limit').
``(B) For purposes of an individual who is participating in a self-
employment assistance program established under this section and has
not reached the combined eligibility limit as of the date on which such
individual exhausts all rights to extended compensation under this
title, the individual shall be eligible to receive self-employment
assistance allowances under a self-employment assistance program
established under section 4001(j) of the Supplemental Appropriations
Act, 2008, until such individual has reached the combined eligibility
limit, provided that the individual otherwise satisfies the eligibility
criteria described under title IV of such Act.
``(b) For the purposes of this section, the term `self-employment
assistance program' means a program as defined under section 3306(t) of
the Internal Revenue Code of 1986, except as follows:
``(1) all references to `regular unemployment compensation
under the State law' shall be deemed to refer instead to `extended
compensation under title II of the Federal-State Extended
Unemployment Compensation Act of 1970';
``(2) paragraph (3)(B) shall not apply;
``(3) clause (i) of paragraph (3)(C) shall be deemed to state
as follows:
```(i) include any entrepreneurial training that the
State or non-profit organizations may provide in
coordination with programs of training offered by the Small
Business Administration, which may include business
counseling, mentorship for participants, access to small
business development resources, and technical assistance;
and';
``(4) the reference to `5 percent' in paragraph (4) shall be
deemed to refer instead to `1 percent'; and
``(5) paragraph (5) shall not apply.
``(c) In the case of an individual who is eligible to receive
extended compensation under this title, such individual shall not
receive self-employment assistance allowances under this section unless
the State agency has a reasonable expectation that such individual will
be entitled to at least 13 times the individual's average weekly
benefit amount of extended compensation and emergency unemployment
compensation.
``(d)(1) An individual who is participating in a self-employment
assistance program established under this section may elect to
discontinue participation in such program at any time.
``(2) For purposes of an individual whose participation in a self-
employment assistance program established under this section is
terminated pursuant to subsection (a)(3) or who has discontinued
participation in such program, if the individual continues to satisfy
the eligibility requirements for extended compensation under this
title, the individual shall receive extended compensation payments with
respect to subsequent weeks of unemployment, to the extent that amounts
remain in the account established for such individual under section
202(b).''.
(b) Availability for Individuals Receiving Emergency Unemployment
Compensation.--Section 4001 of the Supplemental Appropriations Act,
2008 (Public Law 110-252; 26 U.S.C. 3304 note), as amended by sections
2141(b) and 2142(a), is further amended by inserting at the end the
following new subsection:
``(j) Authority to Conduct Self-employment Assistance Program.--
``(1) In general.--
``(A) Establishment.--Any agreement under subsection (a)
may provide that the State agency of the State shall establish
a self-employment assistance program, as described in paragraph
(2), to provide for the payment of emergency unemployment
compensation as self-employment assistance allowances to
individuals who would otherwise satisfy the eligibility
criteria specified in subsection (b).
``(B) Payment of allowances.--Subject to subparagraph (C),
the self-employment assistance allowance described in
subparagraph (A) shall be paid to an eligible individual from
such individual's emergency unemployment compensation account,
as described in section 4002, and the amount in such account
shall be reduced accordingly.
``(C) Limitation on self-employment assistance for
individuals receiving extended compensation and emergency
unemployment compensation.--
``(i) Combined eligibility limit.--Subject to clause
(ii), for purposes of self-employment assistance programs
established under this subsection and section 208 of the
Federal-State Extended Unemployment Compensation Act of
1970, an individual shall be provided with self-employment
assistance allowances under such programs for a total of
not greater than 26 weeks (referred to in this subsection
as the `combined eligibility limit').
``(ii) Carryover rule.--For purposes of an individual
who is participating in a self-employment assistance
program established under this subsection and has not
reached the combined eligibility limit as of the date on
which such individual exhausts all rights to extended
compensation under this title, the individual shall be
eligible to receive self-employment assistance allowances
under a self-employment assistance program established
under section 208 of the Federal-State Extended
Unemployment Compensation Act of 1970 until such individual
has reached the combined eligibility limit, provided that
the individual otherwise satisfies the eligibility criteria
described under title II of such Act.
``(2) Definition of `self-employment assistance program'.--For
the purposes of this section, the term `self-employment assistance
program' means a program as defined under section 3306(t) of the
Internal Revenue Code of 1986, except as follows:
``(A) all references to `regular unemployment compensation
under the State law' shall be deemed to refer instead to
`emergency unemployment compensation under title IV of the
Supplemental Appropriations Act, 2008';
``(B) paragraph (3)(B) shall not apply;
``(C) clause (i) of paragraph (3)(C) shall be deemed to
state as follows:
```(i) include any entrepreneurial training that the
State or non-profit organizations may provide in
coordination with programs of training offered by the Small
Business Administration, which may include business
counseling, mentorship for participants, access to small
business development resources, and technical assistance;
and';
``(D) the reference to `5 percent' in paragraph (4) shall
be deemed to refer instead to `1 percent'; and
``(E) paragraph (5) shall not apply.
``(3) Availability of self-employment assistance allowances.--
In the case of an individual who is eligible to receive emergency
unemployment compensation payment under this title, such individual
shall not receive self-employment assistance allowances under this
subsection unless the State agency has a reasonable expectation
that such individual will be entitled to at least 13 times the
individual's average weekly benefit amount of extended compensation
and emergency unemployment compensation.
``(4) Participant option to terminate participation in self-
employment assistance program.--
``(A) Termination.--An individual who is participating in a
self-employment assistance program established under this
subsection may elect to discontinue participation in such
program at any time.
``(B) Continued eligibility for emergency unemployment
compensation.--For purposes of an individual whose
participation in the self-employment assistance program
established under this subsection is terminated pursuant to
paragraph (1)(C) or who has discontinued participation in such
program, if the individual continues to satisfy the eligibility
requirements for emergency unemployment compensation under this
title, the individual shall receive emergency unemployment
compensation payments with respect to subsequent weeks of
unemployment, to the extent that amounts remain in the account
established for such individual under section 4002(b) or to the
extent that such individual commences receiving the amounts
described in subsections (c), (d), or (e) of such section,
respectively.''.
SEC. 2182. GRANTS FOR SELF-EMPLOYMENT ASSISTANCE PROGRAMS.
(a) In General.--
(1) Establishment or improved administration.--Subject to the
requirements established under subsection (b), the Secretary shall
award grants to States for the purposes of--
(A) improved administration of self-employment assistance
programs that have been established, prior to the date of the
enactment of this Act, pursuant to section 3306(t) of the
Internal Revenue Code of 1986 (26 U.S.C. 3306(t)), for
individuals who are eligible to receive regular unemployment
compensation;
(B) development, implementation, and administration of
self-employment assistance programs that are established,
subsequent to the date of the enactment of this Act, pursuant
to section 3306(t) of the Internal Revenue Code of 1986, for
individuals who are eligible to receive regular unemployment
compensation; and
(C) development, implementation, and administration of
self-employment assistance programs that are established
pursuant to section 208 of the Federal-State Extended
Unemployment Compensation Act of 1970 or section 4001(j) of the
Supplemental Appropriations Act, 2008, for individuals who are
eligible to receive extended compensation or emergency
unemployment compensation.
(2) Promotion and enrollment.--Subject to the requirements
established under subsection (b), the Secretary shall award
additional grants to States that submit approved applications for a
grant under paragraph (1) for such States to promote self-
employment assistance programs and enroll unemployed individuals in
such programs.
(b) Application and Disbursal.--
(1) Application.--Any State seeking a grant under paragraph (1)
or (2) of subsection (a) shall submit an application to the
Secretary at such time, in such manner, and containing such
information as is determined appropriate by the Secretary. In no
case shall the Secretary award a grant under this section with
respect to an application that is submitted after December 31,
2013.
(2) Notice.--Not later than 30 days after receiving an
application described in paragraph (1) from a State, the Secretary
shall notify the State agency as to whether a grant has been
approved for such State for the purposes described in subsection
(a).
(3) Certification.--If the Secretary determines that a State
has met the requirements for a grant under subsection (a), the
Secretary shall make a certification to that effect to the
Secretary of the Treasury, as well as a certification as to the
amount of the grant payment to be transferred to the State account
in the Unemployment Trust Fund under section 904 of the Social
Security Act (42 U.S.C. 1104). The Secretary of the Treasury shall
make the appropriate transfer to the State account not later than 7
days after receiving such certification.
(c) Allotment Factors.--For purposes of allotting the funds
available under subsection (d) to States that have met the requirements
for a grant under this section, the amount of the grant provided to
each State shall be determined based upon the percentage of unemployed
individuals in the State relative to the percentage of unemployed
individuals in all States.
(d) Funding.--There are appropriated, out of moneys in the Treasury
not otherwise appropriated, $35,000,000 for the period of fiscal year
2012 through fiscal year 2013 for purposes of carrying out the grant
program under this section,
SEC. 2183. ASSISTANCE AND GUIDANCE IN IMPLEMENTING SELF-EMPLOYMENT
ASSISTANCE PROGRAMS.
(a) Model Language and Guidance.--For purposes of assisting States
in establishing, improving, and administering self-employment
assistance programs, the Secretary shall--
(1) develop model language that may be used by States in
enacting such programs, as well as periodically review and revise
such model language; and
(2) provide technical assistance and guidance in establishing,
improving, and administering such programs.
(b) Reporting and Evaluation.--
(1) Reporting.--The Secretary shall establish reporting
requirements for States that have established self-employment
assistance programs, which shall include reporting on--
(A) the total number of individuals who received
unemployment compensation and--
(i) were referred to a self-employment assistance
program;
(ii) participated in such program; and
(iii) received an allowance under such program;
(B) the total amount of allowances provided to individuals
participating in a self-employment assistance program;
(C) the total income (as determined by survey or other
appropriate method) for businesses that have been established
by individuals participating in a self-employment assistance
program, as well as the total number of individuals employed
through such businesses; and
(D) any additional information, as determined appropriate
by the Secretary.
(2) Evaluation.--Not later than 5 years after the date of the
enactment of this Act, the Secretary shall submit to Congress a
report that evaluates the effectiveness of self-employment
assistance programs established by States, including--
(A) an analysis of the implementation and operation of
self-employment assistance programs by States;
(B) an evaluation of the economic outcomes for individuals
who participated in a self-employment assistance program as
compared to individuals who received unemployment compensation
and did not participate in a self-employment assistance
program, including a comparison as to employment status,
income, and duration of receipt of unemployment compensation or
self-employment assistance allowances; and
(C) an evaluation of the state of the businesses started by
individuals who participated in a self-employment assistance
program, including information regarding--
(i) the type of businesses established;
(ii) the sustainability of the businesses;
(iii) the total income collected by the businesses;
(iv) the total number of individuals employed through
such businesses; and
(v) the estimated Federal and State tax revenue
collected from such businesses and their employees.
(c) Flexibility and Accountability.--The model language, guidance,
and reporting requirements developed by the Secretary under subsections
(a) and (b) shall--
(1) allow sufficient flexibility for States and participating
individuals; and
(2) ensure accountability and program integrity.
(d) Consultation.--For purposes of developing the model language,
guidance, and reporting requirements described under subsections (a)
and (b), the Secretary shall consult with employers, labor
organizations, State agencies, and other relevant program experts.
(e) Entrepreneurial Training Programs.--The Secretary shall utilize
resources available through the Department of Labor and coordinate with
the Administrator of the Small Business Administration to ensure that
adequate funding is reserved and made available for the provision of
entrepreneurial training to individuals participating in self-
employment assistance programs.
(f) Self-employment Assistance Program.--For purposes of this
section, the term ``self-employment assistance program'' means a
program established pursuant to section 3306(t) of the Internal Revenue
Code of 1986 (26 U.S.C. 3306(t)), section 208 of the Federal-State
Extended Unemployment Compensation Act of 1970, or section 4001(j) of
the Supplemental Appropriations Act, 2008, for individuals who are
eligible to receive regular unemployment compensation, extended
compensation, or emergency unemployment compensation.
SEC. 2184. DEFINITIONS.
In this subtitle:
(1) Secretary.--The term ``Secretary'' means the Secretary of
Labor.
(2) State; state agency.--The terms ``State'' and ``State
agency'' have the meanings given such terms under section 205 of
the Federal-State Extended Unemployment Compensation Act of 1970
(26 U.S.C. 3304 note).
TITLE III--MEDICARE AND OTHER HEALTH PROVISIONS
Subtitle A--Medicare Extensions
SEC. 3001. EXTENSION OF MMA SECTION 508 RECLASSIFICATIONS.
(a) In General.--Section 106(a) of division B of the Tax Relief and
Health Care Act of 2006 (42 U.S.C. 1395 note), as amended by section
117 of the Medicare, Medicaid, and SCHIP Extension Act of 2007 (Public
Law 110-173), section 124 of the Medicare Improvements for Patients and
Providers Act of 2008 (Public Law 110-275), sections 3137(a) and 10317
of the Patient Protection and Affordable Care Act (Public Law 111-148),
section 102(a) of the Medicare and Medicaid Extenders Act of 2010
(Public Law 111-309), and section 302(a) of the Temporary Payroll Tax
Cut Continuation Act of 2011 (Public Law 112-78), is amended by
striking ``November 30, 2011'' and inserting ``March 31, 2012''.
(b) Special Rule.--
(1) In general.--Subject to paragraph (2), for purposes of
implementation of the amendment made by subsection (a), including
for purposes of the implementation of paragraph (2) of section
117(a) of the Medicare, Medicaid, and SCHIP Extension Act of 2007
(Public Law 110-173), for the period beginning on December 1, 2011,
and ending on March 31, 2012, the Secretary of Health and Human
Services shall use the hospital wage index that was promulgated by
the Secretary of Health and Human Services in the Federal Register
on August 18, 2011 (76 Fed. Reg. 51476), and any subsequent
corrections.
(2) Exception.--In determining the wage index applicable to
hospitals that qualify for wage index reclassification, the
Secretary shall, for the period described in paragraph (1), include
the average hourly wage data of hospitals whose reclassification
was extended pursuant to the amendment made by subsection (a) only
if including such data results in a higher applicable reclassified
wage index. Any revision to hospital wage indexes made as a result
of this paragraph shall not be effected in a budget neutral manner.
(c) Timeframe for Payments.--
(1) In general.--The Secretary shall make payments required
under subsections (a) and (b) by not later than June 30, 2012.
(2) October 2011 and november 2011 conforming change.--Section
302(c) of the Temporary Payroll Tax Cut Continuation Act of 2011
(Public Law 112-78) is amended by striking ``December 31, 2012''
and inserting ``June 30, 2012''.
SEC. 3002. EXTENSION OF OUTPATIENT HOLD HARMLESS PAYMENTS.
(a) In General.--Section 1833(t)(7)(D)(i) of the Social Security
Act (42 U.S.C. 1395l(t)(7)(D)(i)), as amended by section 308 of the
Temporary Payroll Tax Cut Continuation Act of 2011 (Public Law 112-78),
is amended--
(1) in subclause (II)--
(A) in the first sentence, by striking ``March 1, 2012''
and inserting ``January 1, 2013''; and
(B) in the second sentence, by striking ``or the first two
months of 2012'' and inserting ``or 2012''; and
(2) in subclause (III), in the first sentence, by striking
``March 1, 2012'' and inserting ``January 1, 2013''.
(b) Report.--Not later than July 1, 2012, the Secretary of Health
and Human Services shall submit to the Committees on Ways and Means and
Energy and Commerce of the House of Representatives and the Committee
on Finance of the Senate a report including recommendations for which
types of hospitals should continue to receive hold harmless payments
described in subclauses (II) and (III) of section 1833(t)(7)(D)(i) of
the Social Security Act (42 U.S.C. 1395l(t)(7)(D)(i)) in order to
maintain adequate beneficiary access to outpatient services. In
conducting such report, the Secretary should examine why some similarly
situated hospitals do not receive such hold harmless payments and are
able to rely only on the prospective payment system for hospital
outpatient department services under section 1833(t) of the Social
Security Act (42 U.S.C. 1395l(t)).
SEC. 3003. PHYSICIAN PAYMENT UPDATE.
(a) In General.--Section 1848(d)(13) of the Social Security Act (42
U.S.C. 1395w-4(d)(13)), as added by section 301 of the Temporary
Payroll Tax Cut Continuation Act of 2011 (Public Law 112-78), is
amended--
(1) in the heading, by striking ``first two months of 2012''
and inserting ``2012'';
(2) in subparagraph (A), by striking ``the period beginning on
January 1, 2012, and ending on February 29, 2012'' and inserting
``2012'';
(3) in the heading of subparagraph (B), by striking ``remaining
portion of 2012'' and inserting ``2013''; and
(4) in subparagraph (B), by striking ``for the period beginning
on March 1, 2012, and ending on December 31, 2012, and for 2013''
and inserting ``for 2013''.
(b) Mandated Studies on Physician Payment Reform.--
(1) Study by secretary on options for bundled or episode-based
payment.--
(A) In general.--The Secretary of Health and Human Services
shall conduct a study that examines options for bundled or
episode-based payments, to cover physicians' services currently
paid under the physician fee schedule under section 1848 of the
Social Security Act (42 U.S.C. 1395w-4), for one or more
prevalent chronic conditions (such as cancer, diabetes, and
congestive heart failure) or episodes of care for one or more
major procedures (such as medical device implantation). In
conducting the study, the Secretary shall consult with medical
professional societies and other relevant stakeholders. The
study shall include an examination of related private payer
payment initiatives.
(B) Report.--Not later than January 1, 2013, the Secretary
shall submit to the Committees on Ways and Means and Energy and
Commerce of the House of Representatives and the Committee on
Finance of the Senate a report on the study conducted under
this paragraph. The Secretary shall include in the report
recommendations on suitable alternative payment options for
services paid under such fee schedule and on associated
implementation requirements (such as timelines, operational
issues, and interactions with other payment reform
initiatives).
(2) GAO study of private payer initiatives.--
(A) In general.--The Comptroller General of the United
States shall conduct a study that examines initiatives of
private entities offering or administering health insurance
coverage, group health plans, or other private health benefit
plans to base or adjust physician payment rates under such
coverage or plans for performance on quality and efficiency, as
well as demonstration of care delivery improvement activities
(such as adherence to evidence-based guidelines and patient-
shared decision making programs). In conducting such study, the
Comptroller General shall consult, to the extent appropriate,
with medical professional societies and other relevant
stakeholders.
(B) Report.--Not later than January 1, 2013, the
Comptroller General shall submit to the Committees on Ways and
Means and Energy and Commerce of the House of Representatives
and the Committee on Finance of the Senate a report on the
study conducted under this paragraph. Such report shall include
an assessment of the applicability of the payer initiatives
described in subparagraph (A) to the Medicare program and
recommendations on modifications to existing Medicare
performance-based initiatives.
SEC. 3004. WORK GEOGRAPHIC ADJUSTMENT.
(a) In General.--Section 1848(e)(1)(E) of the Social Security Act
(42 U.S.C. 1395w-4(e)(1)(E)), as amended by section 303 of the
Temporary Payroll Tax Cut Continuation Act of 2011 (Public Law 112-78),
is amended by striking ``before March 1, 2012'' and inserting ``before
January 1, 2013''.
(b) Report.--Not later than June 15, 2013, the Medicare Payment
Advisory Commission shall submit to the Committees on Ways and Means
and Energy and Commerce of the House of Representatives and the
Committee on Finance of the Senate a report that assesses whether any
adjustment under section 1848 of the Social Security Act (42 U.S.C.
1395w-4) to distinguish the difference in work effort by geographic
area is appropriate and, if so, what that level should be and where it
should be applied. The report shall also assess the impact of the work
geographic adjustment under such section, including the extent to which
the floor on such adjustment impacts access to care.
SEC. 3005. PAYMENT FOR OUTPATIENT THERAPY SERVICES.
(a) Application of Additional Requirements.--Section 1833(g)(5) of
the Social Security Act (42 U.S.C. 1395l(g)(5)), as amended by section
304 of the Temporary Payroll Tax Cut Continuation Act of 2011 (Public
Law 112-78), is amended--
(1) by inserting ``(A)'' after ``(5)'';
(2) in the first sentence, by striking ``February 29, 2012''
and inserting ``December 31, 2012'';
(3) in the first sentence, by inserting ``and if the
requirement of subparagraph (B) is met'' after ``medically
necessary'';
(4) in the second sentence, by inserting ``made in accordance
with such requirement'' after ``receipt of the request''; and
(5) by adding at the end the following new subparagraphs:
``(B) In the case of outpatient therapy services for which an
exception is requested under the first sentence of subparagraph (A),
the claim for such services shall contain an appropriate modifier (such
as the KX modifier used as of the date of the enactment of this
subparagraph) indicating that such services are medically necessary as
justified by appropriate documentation in the medical record involved.
``(C)(i) In applying this paragraph with respect to a request for
an exception with respect to expenses that would be incurred for
outpatient therapy services (including services described in subsection
(a)(8)(B)) that would exceed the threshold described in clause (ii) for
a year, the request for such an exception, for services furnished on or
after October 1, 2012, shall be subject to a manual medical review
process that is similar to the manual medical review process used for
certain exceptions under this paragraph in 2006.
``(ii) The threshold under this clause for a year is $3,700. Such
threshold shall be applied separately--
``(I) for physical therapy services and speech-language
pathology services; and
``(II) for occupational therapy services.''.
(b) Temporary Application of Therapy Cap to Therapy Furnished as
Part of Hospital Outpatient Services.--Section 1833(g) of such Act (42
U.S.C. 1395l(g)) is amended--
(1) in each of paragraphs (1) and (3), by striking ``but not
described in section 1833(a)(8)(B)'' and inserting ``but (except as
provided in paragraph (6)) not described in subsection (a)(8)(B)'';
and
(2) by adding at the end the following new paragraph:
``(6) In applying paragraphs (1) and (3) to services furnished
during the period beginning not later than October 1, 2012, and ending
on December 31, 2012, the exclusion of services described in subsection
(a)(8)(B) from the uniform dollar limitation specified in paragraph (2)
shall not apply to such services furnished during 2012.''.
(c) Requirement for Inclusion on Claims of NPI of Physician Who
Reviews Therapy Plan.--Section 1842(t) of such Act (42 U.S.C. 1395u(t))
is amended--
(1) by inserting ``(1)'' after ``(t)''; and
(2) by adding at the end the following new paragraph:
``(2) Each request for payment, or bill submitted, for therapy
services described in paragraph (1) or (3) of section 1833(g),
including services described in section 1833(a)(8)(B), furnished on or
after October 1, 2012, for which payment may be made under this part
shall include the national provider identifier of the physician who
periodically reviews the plan for such services under section
1861(p)(2).''.
(d) Implementation.--The Secretary of Health and Human Services
shall implement such claims processing edits and issue such guidance as
may be necessary to implement the amendments made by this section in a
timely manner. Notwithstanding any other provision of law, the
Secretary may implement the amendments made by this section by program
instruction. Of the amount of funds made available to the Secretary for
fiscal year 2012 for program management for the Centers for Medicare &
Medicaid Services, not to exceed $9,375,000 shall be available for such
fiscal year and the first 3 months of fiscal year 2013 to carry out
section 1833(g)(5)(C) of the Social Security Act (relating to manual
medical review), as added by subsection (a).
(e) Effective Date.--The requirement of subparagraph (B) of section
1833(g)(5) of the Social Security Act (42 U.S.C. 1395l(g)(5)), as added
by subsection (a), shall apply to services furnished on or after March
1, 2012.
(f) MedPAC Report on Improved Medicare Therapy Benefits.--Not later
than June 15, 2013, the Medicare Payment Advisory Commission shall
submit to the Committees on Energy and Commerce and Ways and Means of
the House of Representatives and to the Committee on Finance of the
Senate a report making recommendations on how to improve the outpatient
therapy benefit under part B of title XVIII of the Social Security Act.
The report shall include recommendations on how to reform the payment
system for such outpatient therapy services under such part so that the
benefit is better designed to reflect individual acuity, condition, and
therapy needs of the patient. Such report shall include an examination
of private sector initiatives relating to outpatient therapy benefits.
(g) Collection of Additional Data.--
(1) Strategy.--The Secretary of Health and Human Services shall
implement, beginning on January 1, 2013, a claims-based data
collection strategy that is designed to assist in reforming the
Medicare payment system for outpatient therapy services subject to
the limitations of section 1833(g) of the Social Security Act (42
U.S.C. 1395l(g)). Such strategy shall be designed to provide for
the collection of data on patient function during the course of
therapy services in order to better understand patient condition
and outcomes.
(2) Consultation.--In proposing and implementing such strategy,
the Secretary shall consult with relevant stakeholders.
(h) GAO Report on Manual Medical Review Process Implementation.--
Not later than May 1, 2013, the Comptroller General of the United
States shall submit to the Committees on Energy and Commerce and Ways
and Means of the House of Representatives and to the Committee on
Finance of the Senate a report on the implementation of the manual
medical review process referred to in section 1833(g)(5)(C) of the
Social Security Act, as added by subsection (a). Such report shall
include aggregate data on the number of individuals and claims subject
to such process, the number of reviews conducted under such process,
and the outcome of such reviews.
SEC. 3006. PAYMENT FOR TECHNICAL COMPONENT OF CERTAIN PHYSICIAN
PATHOLOGY SERVICES.
Section 542(c) of the Medicare, Medicaid, and SCHIP Benefits
Improvement and Protection Act of 2000 (as enacted into law by section
1(a)(6) of Public Law 106-554), as amended by section 732 of the
Medicare Prescription Drug, Improvement, and Modernization Act of 2003
(42 U.S.C. 1395w-4 note), section 104 of division B of the Tax Relief
and Health Care Act of 2006 (42 U.S.C. 1395w-4 note), section 104 of
the Medicare, Medicaid, and SCHIP Extension Act of 2007 (Public Law
110-173), section 136 of the Medicare Improvements for Patients and
Providers Act of 2008 (Public Law 110-275), section 3104 of the Patient
Protection and Affordable Care Act (Public Law 111-148), section 105 of
the Medicare and Medicaid Extenders Act of 2010 (Public Law 111-309),
and section 305 of the Temporary Payroll Tax Cut Continuation Act of
2011 (Public Law 112-78), is amended by striking ``and the first two
months of 2012'' and inserting ``and the first six months of 2012''.
SEC. 3007. AMBULANCE ADD-ON PAYMENTS.
(a) Ground Ambulance.--Section 1834(l)(13)(A) of the Social
Security Act (42 U.S.C. 1395m(l)(13)(A)), as amended by section 306(a)
of the Temporary Payroll Tax Cut Continuation Act of 2011 (Public Law
112-78), is amended--
(1) in the matter preceding clause (i), by striking ``March 1,
2012'' and inserting ``January 1, 2013''; and
(2) in each of clauses (i) and (ii), by striking ``March 1,
2012'' and inserting ``January 1, 2013'' each place it appears.
(b) Air Ambulance.--Section 146(b)(1) of the Medicare Improvements
for Patients and Providers Act of 2008 (Public Law 110-275), as amended
by sections 3105(b) and 10311(b) of the Patient Protection and
Affordable Care Act (Public Law 111-148), section 106(b) of the
Medicare and Medicaid Extenders Act of 2010 (Public Law 111-309) and
section 306(b) of the Temporary Payroll Tax Cut Continuation Act of
2011 (Public Law 112-78), is amended by striking ``February 29, 2012''
and inserting ``December 31, 2012''.
(c) Super Rural Ambulance.--Section 1834(l)(12)(A) of the Social
Security Act (42 U.S.C. 1395m(l)(12)(A)), as amended by section 306(c)
of Temporary Payroll Tax Cut Continuation Act of 2011 (Public Law 112-
78), is amended in the first sentence by striking ``March 1, 2012'' and
inserting ``January 1, 2013''.
(d) GAO Report Update.--Not later than October 1, 2012, the
Comptroller General of the United States shall update the GAO report
GAO-07-383 (relating to Ambulance Providers: Costs and Expected
Medicare Margins Vary Greatly) to reflect current costs for ambulance
providers.
(e) MedPAC Report.--The Medicare Payment Advisory Commission shall
conduct a study of--
(1) the appropriateness of the add-on payments for ambulance
providers under paragraphs (12)(A) and (13)(A) of section 1834(l)
of the Social Security Act (42 U.S.C. 1395m(l)) and the treatment
of air ambulance providers under section 146(b)(1) of the Medicare
Improvements for Patients and Providers Act of 2008 (Public Law
110-275);
(2) the effect these add-on payments and such treatment have on
the Medicare margins of ambulance providers; and
(3) whether there is a need to reform the Medicare ambulance
fee schedule under such section and, if so, what should such
reforms be, including whether the add-on payments should be
included in the base rate.
Not later than June 15, 2013, the Commission shall submit to the
Committees on Ways and Means and Energy and Commerce of the House of
Representatives and the Committee on Finance of the Senate a report on
such study and shall include in the report such recommendations as the
Commission deems appropriate.
Subtitle B--Other Health Provisions
SEC. 3101. QUALIFYING INDIVIDUAL PROGRAM.
(a) Extension.--Section 1902(a)(10)(E)(iv) of the Social Security
Act (42 U.S.C. 1396a(a)(10)(E)(iv)), as amended by section 310(a) of
the Temporary Payroll Tax Cut Continuation Act of 2011 (Public Law 112-
78), is amended by striking ``February'' and inserting ``December''.
(b) Extending Total Amount Available for Allocation.--Section
1933(g) of such Act (42 U.S.C. 1396u-3(g)), as amended by section
310(b) of the Temporary Payroll Tax Cut Continuation Act of 2011
(Public Law 112-78), is amended--
(1) in paragraph (2)--
(A) in subparagraph (P), by striking ``and'' after the
semicolon;
(B) in subparagraph (Q), by striking ``February 29, 2012,
the total allocation amount is $150,000,000.'' and inserting
``September 30, 2012, the total allocation amount is
$450,000,000; and''; and
(C) by adding at the end the following new subparagraph:
``(R) for the period that begins on October 1, 2012, and
ends on December 31, 2012, the total allocation amount is
$280,000,000.''; and
(2) in paragraph (3), in the matter preceding subparagraph (A),
by striking ``or (P)'' and inserting ``(P), or (R)''.
SEC. 3102. TRANSITIONAL MEDICAL ASSISTANCE.
Sections 1902(e)(1)(B) and 1925(f) of the Social Security Act (42
U.S.C. 1396a(e)(1)(B), 1396r-6(f)), as amended by section 311 of the
Temporary Payroll Tax Cut Continuation Act of 2011 (Public Law 112-78),
are each amended by striking ``February 29'' and inserting ``December
31''.
Subtitle C--Health Offsets
SEC. 3201. REDUCTION OF BAD DEBT TREATED AS AN ALLOWABLE COST.
(a) Hospitals.--Section 1861(v)(1)(T) of the Social Security Act
(42 U.S.C. 1395x(v)(1)(T)) is amended--
(1) in clause (iii), by striking ``and'' at the end;
(2) in clause (iv)--
(A) by striking ``a subsequent fiscal year'' and inserting
``fiscal years 2001 through 2012''; and
(B) by striking the period at the end and inserting ``,
and''; and
(3) by adding at the end the following:
``(v) for cost reporting periods beginning during fiscal year
2013 or a subsequent fiscal year, by 35 percent of such amount
otherwise allowable.''.
(b) Skilled Nursing Facilities.--Section 1861(v)(1)(V) of such Act
(42 U.S.C. 1395x(v)(1)(V)) is amended--
(1) in the matter preceding clause (i), by striking ``with
respect to cost reporting periods beginning on or after October 1,
2005'' and inserting ``and (beginning with respect to cost
reporting periods beginning during fiscal year 2013) for covered
skilled nursing services described in section 1888(e)(2)(A)
furnished by hospital providers of extended care services (as
described in section 1883)'';
(2) in clause (i), by striking ``reduced by'' and all that
follows through ``allowable; and'' and inserting the following:
``reduced by--
``(I) for cost reporting periods beginning on or after October
1, 2005, but before fiscal year 2013, 30 percent of such amount
otherwise allowable; and
``(II) for cost reporting periods beginning during fiscal year
2013 or a subsequent fiscal year, by 35 percent of such amount
otherwise allowable.''; and
(3) in clause (ii), by striking ``such section shall not be
reduced.'' and inserting ``such section--
``(I) for cost reporting periods beginning on or after October
1, 2005, but before fiscal year 2013, shall not be reduced;
``(II) for cost reporting periods beginning during fiscal year
2013, shall be reduced by 12 percent of such amount otherwise
allowable;
``(III) for cost reporting periods beginning during fiscal year
2014, shall be reduced by 24 percent of such amount otherwise
allowable; and
``(IV) for cost reporting periods beginning during a subsequent
fiscal year, shall be reduced by 35 percent of such amount
otherwise allowable.''.
(c) Certain Other Providers.--Section 1861(v)(1) of such Act (42
U.S.C. 1395x(v)(1)) is amended by adding at the end the following new
subparagraph:
``(W)(i) In determining such reasonable costs for providers
described in clause (ii), the amount of bad debts otherwise treated as
allowable costs which are attributable to deductibles and coinsurance
amounts under this title shall be reduced--
``(I) for cost reporting periods beginning during fiscal year
2013, by 12 percent of such amount otherwise allowable;
``(II) for cost reporting periods beginning during fiscal year
2014, by 24 percent of such amount otherwise allowable; and
``(III) for cost reporting periods beginning during a
subsequent fiscal year, by 35 percent of such amount otherwise
allowable.
``(ii) A provider described in this clause is a provider of
services not described in subparagraph (T) or (V), a supplier, or any
other type of entity that receives payment for bad debts under the
authority under subparagraph (A).''.
(d) Conforming Amendment for Hospital Services.--Section 4008(c) of
the Omnibus Budget Reconciliation Act of 1987 (42 U.S.C. 1395 note), as
amended by section 8402 of the Technical and Miscellaneous Revenue Act
of 1988 and section 6023 of the Omnibus Budget Reconciliation Act of
1989, is amended by adding at the end the following new sentence:
``Effective for cost reporting periods beginning on or after October 1,
2012, the provisions of the previous two sentences shall not apply.''.
SEC. 3202. REBASE MEDICARE CLINICAL LABORATORY PAYMENT RATES.
Section 1833(h)(2)(A) of the Social Security Act (42 U.S.C.
1395l(h)(2)(A)) is amended--
(1) in clause (i), by striking ``paragraph (4)'' and inserting
``clause (v), subparagraph (B), and paragraph (4)'';
(2) by moving clause (iv), subclauses (I) and (II) of such
clause, and the flush matter at the end of such clause 6 ems to the
left; and
(3) by adding at the end the following new clause:
``(v) The Secretary shall reduce by 2 percent the fee schedules
otherwise determined under clause (i) for 2013, and such reduced fee
schedules shall serve as the base for 2014 and subsequent years.''.
SEC. 3203. REBASING STATE DSH ALLOTMENTS FOR FISCAL YEAR 2021.
Section 1923(f) of the Social Security Act (42 U.S.C. 1396r-4(f))
is amended--
(1) by redesignating paragraph (8) as paragraph (9);
(2) in paragraph (3)(A) by striking ``paragraphs (6) and (7)''
and inserting ``paragraphs (6), (7), and (8)''; and
(3) by inserting after paragraph (7) the following new
paragraph:
``(8) Rebasing of state dsh allotments for fiscal year 2021.--
With respect to fiscal year 2021, for purposes of applying
paragraph (3)(A) to determine the DSH allotment for a State, the
amount of the DSH allotment for the State under paragraph (3) for
fiscal year 2020 shall be equal to the DSH allotment as reduced
under paragraph (7).''.
SEC. 3204. TECHNICAL CORRECTION TO THE DISASTER RECOVERY FMAP
PROVISION.
(a) In General.--Section 1905(aa) of the Social Security Act (42
U.S.C. 1396d(aa)) is amended--
(1) in paragraph (1)--
(A) in subparagraph (A), by striking ``the Federal medical
assistance percentage determined for the fiscal year'' and all
that follows through the period and inserting ``the State's
regular FMAP shall be increased by 50 percent of the number of
percentage points by which the State's regular FMAP for such
fiscal year is less than the Federal medical assistance
percentage determined for the State for the preceding fiscal
year after the application of only subsection (a) of section
5001 of Public Law 111-5 (if applicable to the preceding fiscal
year) and without regard to this subsection, subsections (y)
and (z), and subsections (b) and (c) of section 5001 of Public
Law 111-5.''; and
(B) in subparagraph (B), by striking ``Federal medical
assistance percentage determined for the preceding fiscal
year'' and all that follows through the period and inserting
``State's regular FMAP for such fiscal year shall be increased
by 25 percent of the number of percentage points by which the
State's regular FMAP for such fiscal year is less than the
Federal medical assistance percentage received by the State
during the preceding fiscal year.'';
(2) in paragraph (2)--
(A) in subparagraph (A)--
(i) by striking ``Federal medical assistance percentage
determined for the State for the fiscal year'' and all that
follows through ``Act,'' and inserting ``State's regular
FMAP for the fiscal year''; and
(ii) by striking ``subsection (y)'' and inserting
``subsections (y) and (z)''; and
(B) in subparagraph (B), by striking ``Federal medical
assistance percentage determined for the State for the fiscal
year'' and all that follows through ``Act,'' and inserting
``State's regular FMAP for the fiscal year'';
(3) by redesignating paragraph (3) as paragraph (4); and
(4) by inserting after paragraph (2) the following:
``(3) In this subsection, the term `regular FMAP' means, for each
fiscal year for which this subsection applies to a State, the Federal
medical assistance percentage that would otherwise apply to the State
for the fiscal year, as determined under subsection (b) and without
regard to this subsection, subsections (y) and (z), and section 10202
of the Patient Protection and Affordable Care Act.''.
(b) Effective Date.--The amendments made by subsection (a) shall
take effect on October 1, 2013.
SEC. 3205. PREVENTION AND PUBLIC HEALTH FUND.
Section 4002(b) of the Patient Protection and Affordable Care Act
(42 U.S.C. 300u-11(b)) is amended by striking paragraphs (2) through
(6) and inserting the following:
``(2) for each of fiscal years 2012 through 2017,
$1,000,000,000;
``(3) for each of fiscal years 2018 and 2019, $1,250,000,000;
``(4) for each of fiscal years 2020 and 2021, $1,500,000,000;
and
``(5) for fiscal year 2022, and each fiscal year thereafter,
$2,000,000,000.''.
TITLE IV--TANF EXTENSION
SEC. 4001. SHORT TITLE.
This title may be cited as the ``Welfare Integrity and Data
Improvement Act''.
SEC. 4002. EXTENSION OF PROGRAM.
(a) Family Assistance Grants.--Section 403(a)(1) of the Social
Security Act (42 U.S.C. 603(a)(1)) is amended--
(1) in subparagraph (A), by striking ``each of fiscal years
1996'' and all that follows through ``2003'' and inserting ``fiscal
year 2012'';
(2) in subparagraph (B)--
(A) by inserting ``(as in effect just before the enactment
of the Welfare Integrity and Data Improvement Act)'' after
``this paragraph'' the first place it appears; and
(B) by inserting ``(as so in effect)'' after ``this
paragraph'' the second place it appears; and
(3) in subparagraph (C), by striking ``2003'' and inserting
``2012''.
(b) Healthy Marriage Promotion and Responsible Fatherhood Grants.--
Section 403(a)(2)(D) of such Act (42 U.S.C. 603(a)(2)(D)) is amended by
striking ``2011'' each place it appears and inserting ``2012''.
(c) Maintenance of Effort Requirement.--Section 409(a)(7) of such
Act (42 U.S.C. 609(a)(7)) is amended--
(1) in subparagraph (A), by striking ``fiscal year'' and all
that follows through ``2013'' and inserting ``a fiscal year''; and
(2) in subparagraph (B)(ii)--
(A) by striking ``for fiscal years 1997 through 2012,'';
and
(B) by striking ``407(a) for the fiscal year,'' and
inserting ``407(a),''.
(d) Tribal Grants.--Section 412(a) of such Act (42 U.S.C. 612(a))
is amended in each of paragraphs (1)(A) and (2)(A) by striking ``each
of fiscal years 1997'' and all that follows through ``2003'' and
inserting ``fiscal year 2012''.
(e) Studies and Demonstrations.--Section 413(h)(1) of such Act (42
U.S.C. 613(h)(1)) is amended by striking ``each of fiscal years 1997
through 2002'' and inserting ``fiscal year 2012''.
(f) Census Bureau Study.--Section 414(b) of such Act (42 U.S.C.
614(b)) is amended by striking ``each of fiscal years 1996'' and all
that follows through ``2003'' and inserting ``fiscal year 2012''.
(g) Child Care Entitlement.--Section 418(a)(3) of such Act (42
U.S.C. 618(a)(3)) is amended by striking ``appropriated'' and all that
follows and inserting ``appropriated $2,917,000,000 for fiscal year
2012.''.
(h) Grants to Territories.--Section 1108(b)(2) of such Act (42
U.S.C. 1308(b)(2)) is amended by striking ``fiscal years 1997 through
2003'' and inserting ``fiscal year 2012''.
(i) Prevention of Duplicate Appropriations for Fiscal Year 2012.--
Expenditures made pursuant to the Short-Term TANF Extension Act (Public
Law 112-35) and the Temporary Payroll Tax Cut Continuation Act of 2011
(Public Law 112-78) for fiscal year 2012 shall be charged to the
applicable appropriation or authorization provided by the amendments
made by this section for such fiscal year.
(j) Effective Date.--This section and the amendments made by this
section shall take effect on the date of the enactment of this Act.
SEC. 4003. DATA EXCHANGE STANDARDIZATION FOR IMPROVED INTEROPERABILITY.
(a) In General.--Section 411 of the Social Security Act (42 U.S.C.
611) is amended by adding at the end the following:
``(d) Data Exchange Standardization for Improved
Interoperability.--
``(1) Data exchange standards.--
``(A) Designation.--The Secretary, in consultation with an
interagency work group which shall be established by the Office
of Management and Budget, and considering State and tribal
perspectives, shall, by rule, designate a data exchange
standard for any category of information required to be
reported under this part.
``(B) Data exchange standards must be nonproprietary and
interoperable.--The data exchange standard designated under
subparagraph (A) shall, to the extent practicable, be
nonproprietary and interoperable.
``(C) Other requirements.--In designating data exchange
standards under this section, the Secretary shall, to the
extent practicable, incorporate--
``(i) interoperable standards developed and maintained
by an international voluntary consensus standards body, as
defined by the Office of Management and Budget, such as the
International Organization for Standardization;
``(ii) interoperable standards developed and maintained
by intergovernmental partnerships, such as the National
Information Exchange Model; and
``(iii) interoperable standards developed and
maintained by Federal entities with authority over
contracting and financial assistance, such as the Federal
Acquisition Regulatory Council.
``(2) Data exchange standards for reporting.--
``(A) Designation.--The Secretary, in consultation with an
interagency work group established by the Office of Management
and Budget, and considering State and tribal perspectives,
shall, by rule, designate data exchange standards to govern the
data reporting required under this part.
``(B) Requirements.--The data exchange standards required
by subparagraph (A) shall, to the extent practicable--
``(i) incorporate a widely-accepted, nonproprietary,
searchable, computer-readable format;
``(ii) be consistent with and implement applicable
accounting principles; and
``(iii) be capable of being continually upgraded as
necessary.
``(C) Incorporation of nonproprietary standards.--In
designating reporting standards under this paragraph, the
Secretary shall, to the extent practicable, incorporate
existing nonproprietary standards, such as the eXtensible
Markup Language.''.
(b) Effective Dates.--
(1) Data exchange standards.--The Secretary of Health and Human
Services shall issue a proposed rule under section 411(d)(1) of the
Social Security Act within 12 months after the date of the
enactment of this section, and shall issue a final rule under such
section 411(d)(1), after public comment, within 24 months after
such date of enactment.
(2) Data reporting standards.--The reporting standards required
under section 411(d)(2) of such Act shall become effective with
respect to reports required in the first reporting period, after
the effective date of the final rule referred to in paragraph (1)
of this subsection, for which the authority for data collection and
reporting is established or renewed under the Paperwork Reduction
Act.
SEC. 4004. SPENDING POLICIES FOR ASSISTANCE UNDER STATE TANF PROGRAMS.
(a) State Requirement.--Section 408(a) of the Social Security Act
(42 U.S.C. 608(a)) is amended by adding at the end the following:
``(12) State requirement to prevent unauthorized spending of
benefits.--
``(A) In general.--A State to which a grant is made under
section 403 shall maintain policies and practices as necessary
to prevent assistance provided under the State program funded
under this part from being used in any electronic benefit
transfer transaction in--
``(i) any liquor store;
``(ii) any casino, gambling casino, or gaming
establishment; or
``(iii) any retail establishment which provides adult-
oriented entertainment in which performers disrobe or
perform in an unclothed state for entertainment.
``(B) Definitions.--For purposes of subparagraph (A)--
``(i) Liquor store.--The term `liquor store' means any
retail establishment which sells exclusively or primarily
intoxicating liquor. Such term does not include a grocery
store which sells both intoxicating liquor and groceries
including staple foods (within the meaning of section 3(r)
of the Food and Nutrition Act of 2008 (7 U.S.C. 2012(r))).
``(ii) Casino, gambling casino, or gaming
establishment.--The terms `casino', `gambling casino', and
`gaming establishment' do not include--
``(I) a grocery store which sells groceries
including such staple foods and which also offers, or
is located within the same building or complex as,
casino, gambling, or gaming activities; or
``(II) any other establishment that offers casino,
gambling, or gaming activities incidental to the
principal purpose of the business.
``(iii) Electronic benefit transfer transaction.--The
term `electronic benefit transfer transaction' means the
use of a credit or debit card service, automated teller
machine, point-of-sale terminal, or access to an online
system for the withdrawal of funds or the processing of a
payment for merchandise or a service.''.
(b) Penalty.--Section 409(a) of such Act (42 U.S.C. 609(a)) is
amended by adding at the end the following:
``(16) Penalty for failure to enforce spending policies.--
``(A) In general.--If, within 2 years after the date of the
enactment of this paragraph, any State has not reported to the
Secretary on such State's implementation of the policies and
practices required by section 408(a)(12), or the Secretary
determines, based on the information provided in State reports,
that any State has not implemented and maintained such policies
and practices, the Secretary shall reduce, by an amount equal
to 5 percent of the State family assistance grant, the grant
payable to such State under section 403(a)(1) for--
``(i) the fiscal year immediately succeeding the year
in which such 2-year period ends; and
``(ii) each succeeding fiscal year in which the State
does not demonstrate that such State has implemented and
maintained such policies and practices.
``(B) Reduction of applicable penalty.--The Secretary may
reduce the amount of the reduction required under subparagraph
(A) based on the degree of noncompliance of the State.
``(C) State not responsible for individual violations.--
Fraudulent activity by any individual in an attempt to
circumvent the policies and practices required by section
408(a)(12) shall not trigger a State penalty under subparagraph
(A).''.
(c) Additional State Plan Requirements.--Section 402(a)(1)(A) of
such Act (42 U.S.C. 602(a)(1)(A)) is amended by adding at the end the
following:
``(vii) Implement policies and procedures as necessary
to prevent access to assistance provided under the State
program funded under this part through any electronic fund
transaction in an automated teller machine or point-of-sale
device located in a place described in section 408(a)(12),
including a plan to ensure that recipients of the
assistance have adequate access to their cash assistance.
``(viii) Ensure that recipients of assistance provided
under the State program funded under this part have access
to using or withdrawing assistance with minimal fees or
charges, including an opportunity to access assistance with
no fee or charges, and are provided information on
applicable fees and surcharges that apply to electronic
fund transactions involving the assistance, and that such
information is made publicly available.''.
(d) Conforming Amendment.--Section 409(c)(4) of such Act (42 U.S.C.
609(c)(4)) is amended by striking ``or (13)'' and inserting ``(13), or
(16)''.
SEC. 4005. TECHNICAL CORRECTIONS.
(a) Section 404(d)(1)(A) of the Social Security Act (42 U.S.C.
604(d)(1)(A)) is amended by striking ``subtitle 1 of Title'' and
inserting ``Subtitle A of title''.
(b) Sections 407(c)(2)(A)(i) and 409(a)(3)(C) of such Act (42
U.S.C. 607(c)(2)(A)(i) and 609(a)(3)(C)) are each amended by striking
``403(b)(6)'' and inserting ``403(b)(5)''.
(c) Section 409(a)(2)(A) of such Act (42 U.S.C. 609(a)(2)(A)) is
amended by moving clauses (i) and (ii) 2 ems to the right.
(d) Section 409(c)(2) of such Act (42 U.S.C. 609(c)(2)) is amended
by inserting a comma after ``appropriate''.
(e) Section 411(a)(1)(A)(ii)(III) of such Act (42 U.S.C.
611(a)(1)(A)(ii)(III)) is amended by striking the last close
parenthesis.
TITLE V--FEDERAL EMPLOYEES RETIREMENT
SEC. 5001. INCREASE IN CONTRIBUTIONS TO FEDERAL EMPLOYEES' RETIREMENT
SYSTEM FOR NEW EMPLOYEES.
(a) Definitions.--Section 8401 of title 5, United States Code, is
amended--
(1) in paragraph (35), by striking ``and'' at the end;
(2) in paragraph (36), by striking the period and inserting ``;
and''; and
(3) by adding at the end the following:
``(37) the term `revised annuity employee' means any individual
who--
``(A) on December 31, 2012--
``(i) is not an employee or Member covered under this
chapter;
``(ii) is not performing civilian service which is
creditable service under section 8411; and
``(iii) has less than 5 years of creditable civilian
service under section 8411; and
``(B) after December 31, 2012, becomes employed as an
employee or becomes a Member covered under this chapter
performing service which is creditable service under section
8411.''.
(b) Increase in Contributions.--Section 8422(a)(3) of title 5,
United States Code, is amended--
(1) by striking ``The applicable percentage under this
paragraph for civilian service'' and inserting ``(A) The applicable
percentage under this paragraph for civilian service by employees
or Members other than revised annuity employees''; and
(2) by adding at the end the following:
``(B) The applicable percentage under this paragraph for civilian
service by revised annuity employees shall be as follows:
------------------------------------------------------------------------
``Employee 9.3 After December 31, 2012.
Congressional employee 9.3 After December 31, 2012.
Member 9.3 After December 31, 2012.
Law enforcement officer, 9.8 After December 31, 2012.
firefighter, member of the
Capitol Police, member of
the Supreme Court Police,
or air traffic controller
Nuclear materials courier 9.8 After December 31, 2012.
Customs and border 9.8 After December 31, 2012.''.
protection officer
------------------------------------------------------------------------
''. (c) Reduction in Congressional Annuities.--
(1) In general.--Section 8415 of title 5, United States Code,
is amended--
(A) by redesignating subsections (d) through (m) as
subsections (e) through (n), respectively; and
(B) by inserting after subsection (c) the following:
``(d) Notwithstanding any other provision of law, the annuity of an
individual described in subsection (b) or (c) who is a revised annuity
employee shall be computed in the same manner as in the case of an
individual described in subsection (a).''.
(2) Technical and conforming amendments.--
(A) Section 8422(d)(2) of title 5, United States Code, is
amended by striking ``section 8415(l)'' and inserting ``section
8415(m)''.
(B) Section 8452(d)(1) of title 5, United States Code, is
amended by striking ``subsection (g)'' and inserting
``subsection (h)''.
(C) Section 8468(b)(1)(A) of title 5, United States Code,
is amended by striking ``section 8415(a) through (h)'' and
inserting ``section 8415(a) through (i)''.
(D) Section 805(a)(2)(B) of the Foreign Service Act of 1980
(22 U.S.C. 4045(a)(2)(B)) is amended by striking ``section
8415(d)'' and inserting ``section 8415(e)''.
(E) Section 806(a) of the Foreign Service Act of 1980 (22
U.S.C. 4046(a)) is amended by striking ``section 8415(d)'' each
place it appears and inserting ``section 8415(e)''.
(F) Section 855(b) of the Foreign Service Act of 1980 (22
U.S.C. 4071d(b)) is amended--
(i) in paragraph (2)(A), by striking ``section
8415(d)(1)'' and inserting ``section 8415(e)(1)''; and
(ii) in paragraph (5), by striking ``section
8415(f)(1)'' and inserting ``section 8415(g)(1)''.
(G) Section 303(b)(1) of the Central Intelligence Agency
Retirement Act (50 U.S.C. 2153(b)(1)) is amended by striking
``section 8415(d)'' and inserting ``section 8415(e)''.
SEC. 5002. FOREIGN SERVICE PENSION SYSTEM.
(a) Definition.--Section 852 of the Foreign Service Act of 1980 (22
U.S.C. 4071a) is amended--
(1) by redesignating paragraphs (7), (8), and (9) as paragraphs
(8), (9), and (10), respectively; and
(2) by inserting after paragraph (6) the following:
``(7) the term `revised annuity participant' means any
individual who--
``(A) on December 31, 2012--
``(i) is not a participant;
``(ii) is not performing service which is creditable
service under section 854; and
``(iii) has less than 5 years creditable service under
section 854; and
``(B) after December 31, 2012, becomes a participant
performing service which is creditable service under section
854;''.
(b) Deductions and Withholdings From Pay.--Section 856(a)(2) of the
Foreign Service Act of 1980 (22 U.S.C. 4071e(a)(2)) is amended--
(1) by striking ``The applicable percentage under this
subsection'' and inserting ``(A) The applicable percentage for a
participant other than a revised annuity participant''; and
(2) by adding at the end the following:
``(B) The applicable percentage for a revised annuity participant
shall be as follows:
``9.85.............................. After December 31, 2012''.
''.SEC. 5003. CENTRAL INTELLIGENCE AGENCY RETIREMENT AND DISABILITY
SYSTEM.
Section 211(a) of the Central Intelligence Agency Retirement Act
(50 U.S.C. 2021(a)) is amended--
(1) by redesignating paragraph (3) as paragraph (4); and
(2) by striking paragraphs (1) and (2) and inserting the
following:
``(1) Definition.--In this subsection, the term `revised
annuity participant' means an individual who--
``(A) on December 31, 2012--
``(i) is not a participant;
``(ii) is not performing qualifying service; and
``(iii) has less than 5 years of qualifying service;
and
``(B) after December 31, 2012, becomes a participant
performing qualifying service.
``(2) Contributions.--
``(A) In general.--Except as provided in subsection (d), 7
percent of the basic pay received by a participant other than a
revised annuity participant for any pay period shall be
deducted and withheld from the pay of that participant and
contributed to the fund.
``(B) Revised annuity participants.--Except as provided in
subsection (d), 9.3 percent of the basic pay received by a
revised annuity participant for any pay period shall be
deducted and withheld from the pay of that revised annuity
participant and contributed to the fund.
``(3) Agency contributions.--
``(A) In general.--An amount equal to 7 percent of the
basic pay received by a participant other than a revised
annuity participant shall be contributed to the fund for a pay
period for the participant from the appropriation or fund which
is used for payment of the participant's basic pay.
``(B) Revised annuity participants.--An amount equal to 4.7
percent of the basic pay received by a revised annuity
participant shall be contributed to the fund for a pay period
for the revised annuity participant from the appropriation or
fund which is used for payment of the revised annuity
participant's basic pay.''.
TITLE VI--PUBLIC SAFETY COMMUNICATIONS AND ELECTROMAGNETIC SPECTRUM
AUCTIONS
SEC. 6001. DEFINITIONS.
In this title:
(1) 700 mhz band.--The term ``700 MHz band'' means the portion
of the electromagnetic spectrum between the frequencies from 698
megahertz to 806 megahertz.
(2) 700 mhz d block spectrum.--The term ``700 MHz D block
spectrum'' means the portion of the electromagnetic spectrum
between the frequencies from 758 megahertz to 763 megahertz and
between the frequencies from 788 megahertz to 793 megahertz.
(3) Appropriate committees of congress.--Except as otherwise
specifically provided, the term ``appropriate committees of
Congress'' means--
(A) the Committee on Commerce, Science, and Transportation
of the Senate; and
(B) the Committee on Energy and Commerce of the House of
Representatives.
(4) Assistant secretary.--The term ``Assistant Secretary''
means the Assistant Secretary of Commerce for Communications and
Information.
(5) Board.--The term ``Board'' means the Board of the First
Responder Network Authority established under section 6204(b).
(6) Broadcast television licensee.--The term ``broadcast
television licensee'' means the licensee of--
(A) a full-power television station; or
(B) a low-power television station that has been accorded
primary status as a Class A television licensee under section
73.6001(a) of title 47, Code of Federal Regulations.
(7) Broadcast television spectrum.--The term ``broadcast
television spectrum'' means the portions of the electromagnetic
spectrum between the frequencies from 54 megahertz to 72 megahertz,
from 76 megahertz to 88 megahertz, from 174 megahertz to 216
megahertz, and from 470 megahertz to 698 megahertz.
(8) Commercial mobile data service.--The term ``commercial
mobile data service'' means any mobile service (as defined in
section 3 of the Communications Act of 1934 (47 U.S.C. 153)) that
is--
(A) a data service;
(B) provided for profit; and
(C) available to the public or such classes of eligible
users as to be effectively available to a substantial portion
of the public, as specified by regulation by the Commission.
(9) Commercial mobile service.--The term ``commercial mobile
service'' has the meaning given such term in section 332 of the
Communications Act of 1934 (47 U.S.C. 332).
(10) Commercial standards.--The term ``commercial standards''
means the technical standards followed by the commercial mobile
service and commercial mobile data service industries for network,
device, and Internet Protocol connectivity. Such term includes
standards developed by the Third Generation Partnership Project
(3GPP), the Institute of Electrical and Electronics Engineers
(IEEE), the Alliance for Telecommunications Industry Solutions
(ATIS), the Internet Engineering Task Force (IETF), and the
International Telecommunication Union (ITU).
(11) Commission.--The term ``Commission'' means the Federal
Communications Commission.
(12) Core network.--The term ``core network'' means the core
network described in section 6202(b)(1).
(13) Emergency call.--The term ``emergency call'' means any
real-time communication with a public safety answering point or
other emergency management or response agency, including--
(A) through voice, text, or video and related data; and
(B) nonhuman-initiated automatic event alerts, such as
alarms, telematics, or sensor data, which may also include
real-time voice, text, or video communications.
(14) Existing public safety broadband spectrum.--The term
``existing public safety broadband spectrum'' means the portion of
the electromagnetic spectrum between the frequencies--
(A) from 763 megahertz to 768 megahertz;
(B) from 793 megahertz to 798 megahertz;
(C) from 768 megahertz to 769 megahertz; and
(D) from 798 megahertz to 799 megahertz.
(15) First responder network authority.--The term ``First
Responder Network Authority'' means the First Responder Network
Authority established under section 6204.
(16) Forward auction.--The term ``forward auction'' means the
portion of an incentive auction of broadcast television spectrum
under section 6403(c).
(17) Incentive auction.--The term ``incentive auction'' means a
system of competitive bidding under subparagraph (G) of section
309(j)(8) of the Communications Act of 1934, as added by section
6402.
(18) Interoperability board.--The term ``Interoperability
Board'' means the Technical Advisory Board for First Responder
Interoperability established under section 6203.
(19) Multichannel video programming distributor.--The term
``multichannel video programming distributor'' has the meaning
given such term in section 602 of the Communications Act of 1934
(47 U.S.C. 522).
(20) Narrowband spectrum.--The term ``narrowband spectrum''
means the portion of the electromagnetic spectrum between the
frequencies from 769 megahertz to 775 megahertz and between the
frequencies from 799 megahertz to 805 megahertz.
(21) Nationwide public safety broadband network.--The term
``nationwide public safety broadband network'' means the
nationwide, interoperable public safety broadband network described
in section 6202.
(22) Next generation 9-1-1 services.--The term ``Next
Generation 9-1-1 services'' means an IP-based system comprised of
hardware, software, data, and operational policies and procedures
that--
(A) provides standardized interfaces from emergency call
and message services to support emergency communications;
(B) processes all types of emergency calls, including
voice, text, data, and multimedia information;
(C) acquires and integrates additional emergency call data
useful to call routing and handling;
(D) delivers the emergency calls, messages, and data to the
appropriate public safety answering point and other appropriate
emergency entities;
(E) supports data or video communications needs for
coordinated incident response and management; and
(F) provides broadband service to public safety answering
points or other first responder entities.
(23) NIST.--The term ``NIST'' means the National Institute of
Standards and Technology.
(24) NTIA.--The term ``NTIA'' means the National
Telecommunications and Information Administration.
(25) Public safety answering point.--The term ``public safety
answering point'' has the meaning given such term in section 222 of
the Communications Act of 1934 (47 U.S.C. 222).
(26) Public safety entity.--The term ``public safety entity''
means an entity that provides public safety services.
(27) Public safety services.--The term ``public safety
services''--
(A) has the meaning given the term in section 337(f) of the
Communications Act of 1934 (47 U.S.C. 337(f)); and
(B) includes services provided by emergency response
providers, as that term is defined in section 2 of the Homeland
Security Act of 2002 (6 U.S.C. 101).
(28) Public safety trust fund.--The term ``Public Safety Trust
Fund'' means the trust fund established under section 6413(a)(1).
(29) Radio access network.--The term ``radio access network''
means the radio access network described in section 6202(b)(2).
(30) Reverse auction.--The term ``reverse auction'' means the
portion of an incentive auction of broadcast television spectrum
under section 6403(a), in which a broadcast television licensee may
submit bids stating the amount it would accept for voluntarily
relinquishing some or all of its broadcast television spectrum
usage rights.
(31) State.--The term ``State'' has the meaning given such term
in section 3 of the Communications Act of 1934 (47 U.S.C. 153).
(32) Ultra high frequency.--The term ``ultra high frequency''
means, with respect to a television channel, that the channel is
located in the portion of the electromagnetic spectrum between the
frequencies from 470 megahertz to 698 megahertz.
(33) Very high frequency.--The term ``very high frequency''
means, with respect to a television channel, that the channel is
located in the portion of the electromagnetic spectrum between the
frequencies from 54 megahertz to 72 megahertz, from 76 megahertz to
88 megahertz, or from 174 megahertz to 216 megahertz.
SEC. 6002. RULE OF CONSTRUCTION.
Each range of frequencies described in this title shall be
construed to be inclusive of the upper and lower frequencies in the
range.
SEC. 6003. ENFORCEMENT.
(a) In General.--The Commission shall implement and enforce this
title as if this title is a part of the Communications Act of 1934 (47
U.S.C. 151 et seq.). A violation of this title, or a regulation
promulgated under this title, shall be considered to be a violation of
the Communications Act of 1934, or a regulation promulgated under such
Act, respectively.
(b) Exceptions.--
(1) Other agencies.--Subsection (a) does not apply in the case
of a provision of this title that is expressly required to be
carried out by an agency (as defined in section 551 of title 5,
United States Code) other than the Commission.
(2) NTIA regulations.--The Assistant Secretary may promulgate
such regulations as are necessary to implement and enforce any
provision of this title that is expressly required to be carried
out by the Assistant Secretary.
SEC. 6004. NATIONAL SECURITY RESTRICTIONS ON USE OF FUNDS AND AUCTION
PARTICIPATION.
(a) Use of Funds.--No funds made available by subtitle B or C may
be used to make payments under a contract to a person described in
subsection (c).
(b) Auction Participation.--A person described in subsection (c)
may not participate in a system of competitive bidding under section
309(j) of the Communications Act of 1934 (47 U.S.C. 309(j))--
(1) that is required to be conducted by this title; or
(2) in which any spectrum usage rights for which licenses are
being assigned were made available under clause (i) of subparagraph
(G) of paragraph (8) of such section, as added by section 6402.
(c) Person Described.--A person described in this subsection is a
person who has been, for reasons of national security, barred by any
agency of the Federal Government from bidding on a contract,
participating in an auction, or receiving a grant.
Subtitle A--Reallocation of Public Safety Spectrum
SEC. 6101. REALLOCATION OF D BLOCK TO PUBLIC SAFETY.
(a) In General.--The Commission shall reallocate the 700 MHz D
block spectrum for use by public safety entities in accordance with the
provisions of this Act.
(b) Spectrum Allocation.--Section 337(a) of the Communications Act
of 1934 (47 U.S.C. 337(a)) is amended--
(1) by striking ``24'' in paragraph (1) and inserting ``34'';
and
(2) by striking ``36'' in paragraph (2) and inserting ``26''.
SEC. 6102. FLEXIBLE USE OF NARROWBAND SPECTRUM.
The Commission may allow the narrowband spectrum to be used in a
flexible manner, including usage for public safety broadband
communications, subject to such technical and interference protection
measures as the Commission may require.
SEC. 6103. 470-512 MHZ PUBLIC SAFETY SPECTRUM.
(a) In General.--Not later than 9 years after the date of enactment
of this title, the Commission shall--
(1) reallocate the spectrum in the 470-512 MHz band (referred
to in this section as the ``T-Band spectrum'') currently used by
public safety eligibles as identified in section 90.303 of title
47, Code of Federal Regulations; and
(2) begin a system of competitive bidding under section 309(j)
of the Communications Act of 1934 (47 U.S.C. 309(j)) to grant new
initial licenses for the use of the spectrum described in paragraph
(1).
(b) Auction Proceeds.--Proceeds (including deposits and upfront
payments from successful bidders) from the competitive bidding system
described in subsection (a)(2) shall be available to the Assistant
Secretary to make grants in such sums as necessary to cover relocation
costs for the relocation of public safety entities from the T-Band
spectrum.
(c) Relocation.--Relocation shall be completed not later than 2
years after the date on which the system of competitive bidding
described in subsection (a)(2) is completed.
Subtitle B--Governance of Public Safety Spectrum
SEC. 6201. SINGLE PUBLIC SAFETY WIRELESS NETWORK LICENSEE.
(a) Reallocation and Grant of License.--Notwithstanding any other
provision of law, and subject to the provisions of this Act, the
Commission shall reallocate and grant a license to the First Responder
Network Authority for the use of the 700 MHz D block spectrum and
existing public safety broadband spectrum.
(b) Term of License.--
(1) Initial license.--The license granted under subsection (a)
shall be for an initial term of 10 years from the date of the
initial issuance of the license.
(2) Renewal of license.--Prior to expiration of the term of the
initial license granted under subsection (a) or the expiration of
any subsequent renewal of such license, the First Responder Network
Authority shall submit to the Commission an application for the
renewal of such license. Such renewal application shall demonstrate
that, during the preceding license term, the First Responder
Network Authority has met the duties and obligations set forth
under this Act. A renewal license granted under this paragraph
shall be for a term of not to exceed 10 years.
(c) Facilitation of Transition.--The Commission shall take all
actions necessary to facilitate the transition of the existing public
safety broadband spectrum to the First Responder Network Authority.
SEC. 6202. PUBLIC SAFETY BROADBAND NETWORK.
(a) Establishment.--The First Responder Network Authority shall
ensure the establishment of a nationwide, interoperable public safety
broadband network.
(b) Network Components.--The nationwide public safety broadband
network shall be based on a single, national network architecture that
evolves with technological advancements and initially consists of--
(1) a core network that--
(A) consists of national and regional data centers, and
other elements and functions that may be distributed
geographically, all of which shall be based on commercial
standards; and
(B) provides the connectivity between--
(i) the radio access network; and
(ii) the public Internet or the public switched
network, or both; and
(2) a radio access network that--
(A) consists of all cell site equipment, antennas, and
backhaul equipment, based on commercial standards, that are
required to enable wireless communications with devices using
the public safety broadband spectrum; and
(B) shall be developed, constructed, managed, maintained,
and operated taking into account the plans developed in the
State, local, and tribal planning and implementation grant
program under section 6302(a).
SEC. 6203. PUBLIC SAFETY INTEROPERABILITY BOARD.
(a) Establishment.--There is established within the Commission an
advisory board to be known as the ``Technical Advisory Board for First
Responder Interoperability''.
(b) Membership.--
(1) In general.--
(A) Voting members.--Not later than 30 days after the date
of enactment of this title, the Chairman of the Commission
shall appoint 14 voting members to the Interoperability Board,
of which--
(i) 4 members shall be representatives of wireless
providers, of which--
(I) 2 members shall be representatives of national
wireless providers;
(II) 1 member shall be a representative of regional
wireless providers; and
(III) 1 member shall be a representative of rural
wireless providers;
(ii) 3 members shall be representatives of equipment
manufacturers;
(iii) 4 members shall be representatives of public
safety entities, of which--
(I) not less than 1 member shall be a
representative of management level employees of public
safety entities; and
(II) not less than 1 member shall be a
representative of employees of public safety entities;
(iv) 3 members shall be representatives of State and
local governments, chosen to reflect geographic and
population density differences across the United States;
and
(v) all members shall have specific expertise necessary
to developing technical requirements under this section,
such as technical expertise, public safety communications
expertise, and commercial network experience.
(B) Non-voting member.--The Assistant Secretary shall
appoint 1 non-voting member to the Interoperability Board.
(2) Period of appointment.--
(A) In general.--Except as provided in subparagraph (B),
members of the Interoperability Board shall be appointed for
the life of the Interoperability Board.
(B) Removal for cause.--A member of the Interoperability
Board may be removed for cause upon the determination of the
Chairman of the Commission.
(3) Vacancies.--Any vacancy in the Interoperability Board shall
not affect the powers of the Interoperability Board, and shall be
filled in the same manner as the original appointment.
(4) Chairperson and vice chairperson.--The Interoperability
Board shall select a Chairperson and Vice Chairperson from among
the members of the Interoperability Board.
(5) Quorum.--A majority of the members of the Interoperability
Board shall constitute a quorum.
(c) Duties of the Interoperability Board.--
(1) Development of technical requirements.--Not later than 90
days after the date of enactment of this Act, the Interoperability
Board, in consultation with the NTIA, NIST, and the Office of
Emergency Communications of the Department of Homeland Security,
shall--
(A) develop recommended minimum technical requirements to
ensure a nationwide level of interoperability for the
nationwide public safety broadband network; and
(B) submit to the Commission for review in accordance with
paragraph (3) recommended minimum technical requirements
described in subparagraph (A).
(2) Consideration.--In developing recommended minimum technical
requirements under paragraph (1), the Interoperability Board shall
base the recommended minimum technical requirements on the
commercial standards for Long Term Evolution (LTE) service.
(3) Approval of recommendations.--
(A) In general.--Not later than 30 days after the date on
which the Interoperability Board submits recommended minimum
technical requirements under paragraph (1)(B), the Commission
shall approve the recommendations, with any revisions it deems
necessary, and transmit such recommendations to the First
Responder Network Authority.
(B) Review.--Any actions taken under subparagraph (A) shall
not be reviewable as a final agency action.
(d) Travel Expenses.--The members of the Interoperability Board
shall be allowed travel expenses, including per diem in lieu of
subsistence, at rates authorized for employees of agencies under
subchapter I of chapter 57 of title 5, United States Code, while away
from their homes or regular places of business in the performance of
services for the Interoperability Board.
(e) Exemption From FACA.--The Federal Advisory Committee Act (5
U.S.C. App.) shall not apply to the Interoperability Board.
(f) Termination of Authority.--The Interoperability Board shall
terminate 15 days after the date on which the Commission transmits the
recommendations to the First Responder Network Authority under
subsection (c)(3)(A).
SEC. 6204. ESTABLISHMENT OF THE FIRST RESPONDER NETWORK AUTHORITY.
(a) Establishment.--There is established as an independent
authority within the NTIA the ``First Responder Network Authority'' or
``FirstNet''.
(b) Board.--
(1) In general.--The First Responder Network Authority shall be
headed by a Board, which shall consist of--
(A) the Secretary of Homeland Security;
(B) the Attorney General of the United States;
(C) the Director of the Office of Management and Budget;
and
(D) 12 individuals appointed by the Secretary of Commerce
in accordance with paragraph (2).
(2) Appointments.--
(A) In general.--In making appointments under paragraph
(1)(D), the Secretary of Commerce shall--
(i) appoint not fewer than 3 individuals to represent
the collective interests of the States, localities, tribes,
and territories;
(ii) seek to ensure geographic and regional
representation of the United States in such appointments;
(iii) seek to ensure rural and urban representation in
such appointments; and
(iv) appoint not fewer than 3 individuals who have
served as public safety professionals.
(B) Required qualifications.--
(i) In general.--Each member appointed under paragraph
(1)(D) should meet not less than 1 of the following
criteria:
(I) Public safety experience.--Knowledge and
experience in the use of Federal, State, local, or
tribal public safety or emergency response.
(II) Technical expertise.--Technical expertise and
fluency regarding broadband communications, including
public safety communications.
(III) Network expertise.--Expertise in building,
deploying, and operating commercial telecommunications
networks.
(IV) Financial expertise.--Expertise in financing
and funding telecommunications networks.
(ii) Expertise to be represented.--In making
appointments under paragraph (1)(D), the Secretary of
Commerce shall appoint--
(I) not fewer than 1 individual who satisfies the
requirement under subclause (II) of clause (i);
(II) not fewer than 1 individual who satisfies the
requirement under subclause (III) of clause (i); and
(III) not fewer than 1 individual who satisfies the
requirement under subclause (IV) of clause (i).
(C) Citizenship.--No individual other than a citizen of the
United States may serve as a member of the Board.
(c) Terms of Appointment.--
(1) Initial appointment deadline.--Members of the Board shall
be appointed not later than 180 days after the date of the
enactment of this title.
(2) Terms.--
(A) Length.--
(i) In general.--Each member of the Board described in
subparagraphs (A) through (C) of subsection (b)(1) shall
serve as a member of the Board for the life of the First
Responder Network Authority.
(ii) Appointed individuals.--The term of office of each
individual appointed to be a member of the Board under
subsection (b)(1)(D) shall be 3 years. No member described
in this clause may serve more than 2 consecutive full 3-
year terms.
(B) Expiration of term.--Any member whose term has expired
may serve until such member's successor has taken office, or
until the end of the calendar year in which such member's term
has expired, whichever is earlier.
(C) Appointment to fill vacancy.--Any member appointed to
fill a vacancy occurring prior to the expiration of the term
for which that member's predecessor was appointed shall be
appointed for the remainder of the predecessor's term.
(D) Staggered terms.--With respect to the initial members
of the Board appointed under subsection (b)(1)(D)--
(i) 4 members shall serve for a term of 3 years;
(ii) 4 members shall serve for a term of 2 years; and
(iii) 4 members shall serve for a term of 1 year.
(3) Vacancies.--A vacancy in the membership of the Board shall
not affect the Board's powers, and shall be filled in the same
manner as the original member was appointed.
(d) Chair.--
(1) Selection.--The Secretary of Commerce shall select, from
among the members of the Board appointed under subsection
(b)(1)(D), an individual to serve for a 2-year term as Chair of the
Board.
(2) Consecutive terms.--An individual may not serve for more
than 2 consecutive terms as Chair of the Board.
(e) Meetings.--
(1) Frequency.--The Board shall meet--
(A) at the call of the Chair; and
(B) not less frequently than once each quarter.
(2) Transparency.--Meetings of the Board, including any
committee of the Board, shall be open to the public. The Board may,
by majority vote, close any such meeting only for the time
necessary to preserve the confidentiality of commercial or
financial information that is privileged or confidential, to
discuss personnel matters, or to discuss legal matters affecting
the First Responder Network Authority, including pending or
potential litigation.
(f) Quorum.--Eight members of the Board shall constitute a quorum,
including at least 6 of the members appointed under subsection
(b)(1)(D).
(g) Compensation.--
(1) In general.--The members of the Board appointed under
subsection (b)(1)(D) shall be compensated at the daily rate of
basic pay for level IV of the Executive Schedule for each day
during which such members are engaged in performing a function of
the Board.
(2) Prohibition on compensation.--A member of the Board
appointed under subparagraphs (A) through (C) of subsection (b)(1)
shall serve without additional pay, and shall not otherwise
benefit, directly or indirectly, as a result of their service to
the First Responder Network Authority, but shall be allowed a per
diem allowance for travel expenses, at rates authorized for an
employee of an agency under subchapter I of chapter 57 of title 5,
United States Code, while away from the home or regular place of
business of the member in the performance of the duties of the
First Responder Network Authority.
SEC. 6205. ADVISORY COMMITTEES OF THE FIRST RESPONDER NETWORK
AUTHORITY.
(a) Advisory Committees.--The First Responder Network Authority--
(1) shall establish a standing public safety advisory committee
to assist the First Responder Network Authority in carrying out its
duties and responsibilities under this subtitle; and
(2) may establish additional standing or ad hoc committees,
panels, or councils as the First Responder Network Authority
determines are necessary.
(b) Selection of Agents, Consultants, and Experts.--
(1) In general.--The First Responder Network Authority shall
select parties to serve as its agents, consultants, or experts in a
fair, transparent, and objective manner, and such agents may
include a program manager to carry out certain of the duties and
responsibilities of deploying and operating the nationwide public
safety broadband network described in subsections (b) and (c) of
section 6206.
(2) Binding and final.--If the selection of an agent,
consultant, or expert satisfies the requirements under paragraph
(1), the selection of that agent, consultant, or expert shall be
final and binding.
SEC. 6206. POWERS, DUTIES, AND RESPONSIBILITIES OF THE FIRST RESPONDER
NETWORK AUTHORITY.
(a) General Powers.--The First Responder Network Authority shall
have the authority to do the following:
(1) To exercise, through the actions of its Board, all powers
specifically granted by the provisions of this subtitle, and such
incidental powers as shall be necessary.
(2) To hold such hearings, sit and act at such times and
places, take such testimony, and receive such evidence as the First
Responder Network Authority considers necessary to carry out its
responsibilities and duties.
(3) To obtain grants and funds from and make contracts with
individuals, private companies, organizations, institutions, and
Federal, State, regional, and local agencies.
(4) To accept, hold, administer, and utilize gifts, donations,
and bequests of property, both real and personal, for the purposes
of aiding or facilitating the work of the First Responder Network
Authority.
(5) To spend funds under paragraph (3) in a manner authorized
by the Board, but only for purposes that will advance or enhance
public safety communications consistent with this title.
(6) To take such other actions as the First Responder Network
Authority (through the Board) may from time to time determine
necessary, appropriate, or advisable to accomplish the purposes of
this title.
(b) Duty and Responsibility to Deploy and Operate a Nationwide
Public Safety Broadband Network.--
(1) In general.--The First Responder Network Authority shall
hold the single public safety wireless license granted under
section 6201 and take all actions necessary to ensure the building,
deployment, and operation of the nationwide public safety broadband
network, in consultation with Federal, State, tribal, and local
public safety entities, the Director of NIST, the Commission, and
the public safety advisory committee established in section
6205(a), including by, at a minimum--
(A) ensuring nationwide standards for use and access of the
network;
(B) issuing open, transparent, and competitive requests for
proposals to private sector entities for the purposes of
building, operating, and maintaining the network that use,
without materially changing, the minimum technical requirements
developed under section 6203;
(C) encouraging that such requests leverage, to the maximum
extent economically desirable, existing commercial wireless
infrastructure to speed deployment of the network; and
(D) managing and overseeing the implementation and
execution of contracts or agreements with non-Federal entities
to build, operate, and maintain the network.
(2) Requirements.--In carrying out the duties and
responsibilities of this subsection, including issuing requests for
proposals, the First Responder Network Authority shall--
(A) ensure the safety, security, and resiliency of the
network, including requirements for protecting and monitoring
the network to protect against cyberattack;
(B) promote competition in the equipment market, including
devices for public safety communications, by requiring that
equipment for use on the network be--
(i) built to open, non-proprietary, commercially
available standards;
(ii) capable of being used by any public safety entity
and by multiple vendors across all public safety broadband
networks operating in the 700 MHz band; and
(iii) backward-compatible with existing commercial
networks to the extent that such capabilities are necessary
and technically and economically reasonable;
(C) promote integration of the network with public safety
answering points or their equivalent; and
(D) address special considerations for areas or regions
with unique homeland security or national security needs.
(3) Rural coverage.--In carrying out the duties and
responsibilities of this subsection, including issuing requests for
proposals, the nationwide, interoperable public safety broadband
network, consistent with the license granted under section 6201,
shall require deployment phases with substantial rural coverage
milestones as part of each phase of the construction and deployment
of the network. To the maximum extent economically desirable, such
proposals shall include partnerships with existing commercial
mobile providers to utilize cost-effective opportunities to speed
deployment in rural areas.
(4) Execution of authority.--In carrying out the duties and
responsibilities of this subsection, the First Responder Network
Authority may--
(A) obtain grants from and make contracts with individuals,
private companies, and Federal, State, regional, and local
agencies;
(B) hire or accept voluntary services of consultants,
experts, advisory boards, and panels to aid the First Responder
Network Authority in carrying out such duties and
responsibilities;
(C) receive payment for use of--
(i) network capacity licensed to the First Responder
Network Authority; and
(ii) network infrastructure constructed, owned, or
operated by the First Responder Network Authority; and
(D) take such other actions as may be necessary to
accomplish the purposes set forth in this subsection.
(c) Other Specific Duties and Responsibilities.--
(1) Establishment of network policies.--In carrying out the
requirements under subsection (b), the First Responder Network
Authority shall develop--
(A) requests for proposals with appropriate--
(i) timetables for construction, including by taking
into consideration the time needed to build out to rural
areas and the advantages offered through partnerships with
existing commercial providers under paragraph (3);
(ii) coverage areas, including coverage in rural and
nonurban areas;
(iii) service levels;
(iv) performance criteria; and
(v) other similar matters for the construction and
deployment of such network;
(B) the technical and operational requirements of the
network;
(C) practices, procedures, and standards for the management
and operation of such network;
(D) terms of service for the use of such network, including
billing practices; and
(E) ongoing compliance review and monitoring of the--
(i) management and operation of such network;
(ii) practices and procedures of the entities operating
on and the personnel using such network; and
(iii) necessary training needs of network operators and
users.
(2) State and local planning.--
(A) Required consultation.--In developing requests for
proposals and otherwise carrying out its responsibilities under
this Act, the First Responder Network Authority shall consult
with regional, State, tribal, and local jurisdictions regarding
the distribution and expenditure of any amounts required to
carry out the policies established under paragraph (1),
including with regard to the--
(i) construction of a core network and any radio access
network build out;
(ii) placement of towers;
(iii) coverage areas of the network, whether at the
regional, State, tribal, or local level;
(iv) adequacy of hardening, security, reliability, and
resiliency requirements;
(v) assignment of priority to local users;
(vi) assignment of priority and selection of entities
seeking access to or use of the nationwide public safety
interoperable broadband network established under
subsection (b); and
(vii) training needs of local users.
(B) Method of consultation.--The consultation required
under subparagraph (A) shall occur between the First Responder
Network Authority and the single officer or governmental body
designated under section 6302(d).
(3) Leveraging existing infrastructure.--In carrying out the
requirement under subsection (b), the First Responder Network
Authority shall enter into agreements to utilize, to the maximum
extent economically desirable, existing--
(A) commercial or other communications infrastructure; and
(B) Federal, State, tribal, or local infrastructure.
(4) Maintenance and upgrades.--The First Responder Network
Authority shall ensure the maintenance, operation, and improvement
of the nationwide public safety broadband network, including by
ensuring that the First Responder Network Authority updates and
revises any policies established under paragraph (1) to take into
account new and evolving technologies.
(5) Roaming agreements.--The First Responder Network Authority
shall negotiate and enter into, as it determines appropriate,
roaming agreements with commercial network providers to allow the
nationwide public safety broadband network to roam onto commercial
networks and gain prioritization of public safety communications
over such networks in times of an emergency.
(6) Network infrastructure and device criteria.--The Director
of NIST, in consultation with the First Responder Network Authority
and the Commission, shall ensure the development of a list of
certified devices and components meeting appropriate protocols and
standards for public safety entities and commercial vendors to
adhere to, if such entities or vendors seek to have access to, use
of, or compatibility with the nationwide public safety broadband
network.
(7) Representation before standard setting entities.--The First
Responder Network Authority, in consultation with the Director of
NIST, the Commission, and the public safety advisory committee
established under section 6205(a), shall represent the interests of
public safety users of the nationwide public safety broadband
network before any proceeding, negotiation, or other matter in
which a standards organization, standards body, standards
development organization, or any other recognized standards-setting
entity addresses the development of standards relating to
interoperability.
(8) Prohibition on negotiation with foreign governments.--The
First Responder Network Authority shall not have the authority to
negotiate or enter into any agreements with a foreign government on
behalf of the United States.
(d) Exemption From Certain Laws.--Any action taken or decisions
made by the First Responder Network Authority shall be exempt from the
requirements of--
(1) section 3506 of title 44, United States Code (commonly
referred to as the Paperwork Reduction Act);
(2) chapter 5 of title 5, United States Code (commonly referred
to as the Administrative Procedures Act); and
(3) chapter 6 of title 5, United States Code (commonly referred
to as the Regulatory Flexibility Act).
(e) Network Construction Fund.--
(1) Establishment.--There is established in the Treasury of the
United States a fund to be known as the ``Network Construction
Fund''.
(2) Use of fund.--Amounts deposited into the Network
Construction Fund shall be used by the--
(A) First Responder Network Authority to carry out this
section, except for administrative expenses; and
(B) NTIA to make grants to States under section
6302(e)(3)(C)(iii)(I).
(f) Termination of Authority.--The authority of the First Responder
Network Authority shall terminate on the date that is 15 years after
the date of enactment of this title.
(g) GAO Report.--Not later than 10 years after the date of the
enactment of this Act, the Comptroller General of the United States
shall submit to Congress a report on what action Congress should take
regarding the 15-year sunset of authority under subsection (f).
SEC. 6207. INITIAL FUNDING FOR THE FIRST RESPONDER NETWORK AUTHORITY.
(a) Borrowing Authority.--Prior to the deposit of proceeds into the
Public Safety Trust Fund from the incentive auctions to be carried out
under section 309(j)(8)(G) of the Communications Act of 1934 or the
auction of spectrum pursuant to section 6401, the NTIA may borrow from
the Treasury such sums as may be necessary, but not to exceed
$2,000,000,000, to implement this subtitle. The NTIA shall reimburse
the Treasury, without interest, from funds deposited into the Public
Safety Trust Fund.
(b) Prohibition.--
(1) In general.--Administrative expenses of the First Responder
Network Authority may not exceed $100,000,000 during the 10-year
period beginning on the date of enactment of this title.
(2) Definition.--For purposes of this subsection, the term
``administrative expenses'' does not include the costs incurred by
the First Responder Network Authority for oversight and audits to
protect against waste, fraud, and abuse.
SEC. 6208. PERMANENT SELF-FUNDING; DUTY TO ASSESS AND COLLECT FEES FOR
NETWORK USE.
(a) In General.--Notwithstanding section 337 of the Communications
Act of 1934 (47 U.S.C. 337), the First Responder Network Authority is
authorized to assess and collect the following fees:
(1) Network user fee.--A user or subscription fee from each
entity, including any public safety entity or secondary user, that
seeks access to or use of the nationwide public safety broadband
network.
(2) Lease fees related to network capacity.--
(A) In general.--A fee from any entity that seeks to enter
into a covered leasing agreement.
(B) Covered leasing agreement.--For purposes of
subparagraph (A), a ``covered leasing agreement'' means a
written agreement resulting from a public-private arrangement
to construct, manage, and operate the nationwide public safety
broadband network between the First Responder Network Authority
and secondary user to permit--
(i) access to network capacity on a secondary basis for
non-public safety services; and
(ii) the spectrum allocated to such entity to be used
for commercial transmissions along the dark fiber of the
long-haul network of such entity.
(3) Lease fees related to network equipment and
infrastructure.--A fee from any entity that seeks access to or use
of any equipment or infrastructure, including antennas or towers,
constructed or otherwise owned by the First Responder Network
Authority resulting from a public-private arrangement to construct,
manage, and operate the nationwide public safety broadband network.
(b) Establishment of Fee Amounts; Permanent Self-funding.--The
total amount of the fees assessed for each fiscal year pursuant to this
section shall be sufficient, and shall not exceed the amount necessary,
to recoup the total expenses of the First Responder Network Authority
in carrying out its duties and responsibilities described under this
subtitle for the fiscal year involved.
(c) Annual Approval.--The NTIA shall review the fees assessed under
this section on an annual basis, and such fees may only be assessed if
approved by the NTIA.
(d) Required Reinvestment of Funds.--The First Responder Network
Authority shall reinvest amounts received from the assessment of fees
under this section in the nationwide public safety interoperable
broadband network by using such funds only for constructing,
maintaining, operating, or improving the network.
SEC. 6209. AUDIT AND REPORT.
(a) Audit.--
(1) In general.--The Secretary of Commerce shall enter into a
contract with an independent auditor to conduct an audit, on an
annual basis, of the First Responder Network Authority in
accordance with general accounting principles and procedures
applicable to commercial corporate transactions. Each audit
conducted under this paragraph shall be made available to the
appropriate committees of Congress.
(2) Location.--Any audit conducted under paragraph (1) shall be
conducted at the place or places where accounts of the First
Responder Network Authority are normally kept.
(3) Access to first responder network authority books and
documents.--
(A) In general.--For purposes of an audit conducted under
paragraph (1), the representatives of the independent auditor
shall--
(i) have access to all books, accounts, records,
reports, files, and all other papers, things, or property
belonging to or in use by the First Responder Network
Authority that pertain to the financial transactions of the
First Responder Network Authority and are necessary to
facilitate the audit; and
(ii) be afforded full facilities for verifying
transactions with the balances or securities held by
depositories, fiscal agents, and custodians.
(B) Requirement.--All books, accounts, records, reports,
files, papers, and property of the First Responder Network
Authority shall remain in the possession and custody of the
First Responder Network Authority.
(b) Report.--
(1) In general.--The independent auditor selected to conduct an
audit under this section shall submit a report of each audit
conducted under subsection (a) to--
(A) the appropriate committees of Congress;
(B) the President; and
(C) the First Responder Network Authority.
(2) Contents.--Each report submitted under paragraph (1) shall
contain--
(A) such comments and information as the independent
auditor determines necessary to inform Congress of the
financial operations and condition of the First Responder
Network Authority;
(B) any recommendations of the independent auditor relating
to the financial operations and condition of the First
Responder Network Authority; and
(C) a description of any program, expenditure, or other
financial transaction or undertaking of the First Responder
Network Authority that was observed during the course of the
audit, which, in the opinion of the independent auditor, has
been carried on or made without the authority of law.
SEC. 6210. ANNUAL REPORT TO CONGRESS.
(a) In General.--Not later than 1 year after the date of enactment
of this Act, and each year thereafter, the First Responder Network
Authority shall submit an annual report covering the preceding fiscal
year to the appropriate committees of Congress.
(b) Required Content.--The report required under subsection (a)
shall include--
(1) a comprehensive and detailed report of the operations,
activities, financial condition, and accomplishments of the First
Responder Network Authority under this section; and
(2) such recommendations or proposals for legislative or
administrative action as the First Responder Network Authority
deems appropriate.
(c) Availability to Testify.--The members of the Board and
employees of the First Responder Network Authority shall be available
to testify before the appropriate committees of the Congress with
respect to--
(1) the report required under subsection (a);
(2) the report of any audit conducted under section 6210; or
(3) any other matter which such committees may determine
appropriate.
SEC. 6211. PUBLIC SAFETY ROAMING AND PRIORITY ACCESS.
The Commission may adopt rules, if necessary in the public
interest, to improve the ability of public safety networks to roam onto
commercial networks and to gain priority access to commercial networks
in an emergency if--
(1) the public safety entity equipment is technically
compatible with the commercial network;
(2) the commercial network is reasonably compensated; and
(3) such access does not preempt or otherwise terminate or
degrade all existing voice conversations or data sessions.
SEC. 6212. PROHIBITION ON DIRECT OFFERING OF COMMERCIAL
TELECOMMUNICATIONS SERVICE DIRECTLY TO CONSUMERS.
(a) In General.--The First Responder Network Authority shall not
offer, provide, or market commercial telecommunications or information
services directly to consumers.
(b) Rule of Construction.--Nothing in this section shall be
construed to prohibit the First Responder Network Authority and a
secondary user from entering into a covered leasing agreement pursuant
to section 6208(a)(2)(B). Nothing in this section shall be construed to
limit the First Responder Network Authority from collecting lease fees
related to network equipment and infrastructure pursuant to section
6208(a)(3).
SEC. 6213. PROVISION OF TECHNICAL ASSISTANCE.
The Commission may provide technical assistance to the First
Responder Network Authority and may take any action necessary to assist
the First Responder Network Authority in effectuating its duties and
responsibilities under this subtitle.
Subtitle C--Public Safety Commitments
SEC. 6301. STATE AND LOCAL IMPLEMENTATION FUND.
(a) Establishment.--There is established in the Treasury of the
United States a fund to be known as the State and Local Implementation
Fund.
(b) Amounts Available for State and Local Implementation Grant
Program.--Any amounts borrowed under subsection (c)(1) and any amounts
in the State and Local Implementation Fund that are not necessary to
reimburse the general fund of the Treasury for such borrowed amounts
shall be available to the Assistant Secretary to implement section
6302.
(c) Borrowing Authority.--
(1) In general.--Prior to the end of fiscal year 2022, the
Assistant Secretary may borrow from the general fund of the
Treasury such sums as may be necessary, but not to exceed
$135,000,000, to implement section 6302.
(2) Reimbursement.--The Assistant Secretary shall reimburse the
general fund of the Treasury, without interest, for any amounts
borrowed under paragraph (1) as funds are deposited into the State
and Local Implementation Fund.
(d) Transfer of Unused Funds.--If there is a balance remaining in
the State and Local Implementation Fund on September 30, 2022, the
Secretary of the Treasury shall transfer such balance to the general
fund of the Treasury, where such balance shall be dedicated for the
sole purpose of deficit reduction.
SEC. 6302. STATE AND LOCAL IMPLEMENTATION.
(a) Establishment of State and Local Implementation Grant
Program.--The Assistant Secretary, in consultation with the First
Responder Network Authority, shall take such action as is necessary to
establish a grant program to make grants to States to assist State,
regional, tribal, and local jurisdictions to identify, plan, and
implement the most efficient and effective way for such jurisdictions
to utilize and integrate the infrastructure, equipment, and other
architecture associated with the nationwide public safety broadband
network to satisfy the wireless communications and data services needs
of that jurisdiction, including with regards to coverage, siting, and
other needs.
(b) Matching Requirements; Federal Share.--
(1) In general.--The Federal share of the cost of any activity
carried out using a grant under this section may not exceed 80
percent of the eligible costs of carrying out that activity, as
determined by the Assistant Secretary, in consultation with the
First Responder Network Authority.
(2) Waiver.--The Assistant Secretary may waive, in whole or in
part, the requirements of paragraph (1) for good cause shown if the
Assistant Secretary determines that such a waiver is in the public
interest.
(c) Programmatic Requirements.--Not later than 6 months after the
date of enactment of this Act, the Assistant Secretary, in consultation
with the First Responder Network Authority, shall establish
requirements relating to the grant program to be carried out under this
section, including the following:
(1) Defining eligible costs for purposes of subsection (b)(1).
(2) Determining the scope of eligible activities for grant
funding under this section.
(3) Prioritizing grants for activities that ensure coverage in
rural as well as urban areas.
(d) Certification and Designation of Officer or Governmental
Body.--In carrying out the grant program established under this
section, the Assistant Secretary shall require each State to certify in
its application for grant funds that the State has designated a single
officer or governmental body to serve as the coordinator of
implementation of the grant funds.
(e) State Network.--
(1) Notice.--Upon the completion of the request for proposal
process conducted by the First Responder Network Authority for the
construction, operation, maintenance, and improvement of the
nationwide public safety broadband network, the First Responder
Network Authority shall provide to the Governor of each State, or
his designee--
(A) notice of the completion of the request for proposal
process;
(B) details of the proposed plan for buildout of the
nationwide, interoperable broadband network in such State; and
(C) the funding level for the State as determined by the
NTIA.
(2) State decision.--Not later than 90 days after the date on
which the Governor of a State receives notice under paragraph (1),
the Governor shall choose whether to--
(A) participate in the deployment of the nationwide,
interoperable broadband network as proposed by the First
Responder Network Authority; or
(B) conduct its own deployment of a radio access network in
such State.
(3) Process.--
(A) In general.--Upon making a decision to opt-out under
paragraph (2)(B), the Governor shall notify the First Responder
Network Authority, the NTIA, and the Commission of such
decision.
(B) State request for proposals.--Not later than 180 days
after the date on which a Governor provides notice under
subparagraph (A), the Governor shall develop and complete
requests for proposals for the construction, maintenance, and
operation of the radio access network within the State.
(C) Submission and approval of alternative plan.--
(i) In general.--The State shall submit an alternative
plan for the construction, maintenance, operation, and
improvements of the radio access network within the State
to the Commission, and such plan shall demonstrate--
(I) that the State will be in compliance with the
minimum technical interoperability requirements
developed under section 6203; and
(II) interoperability with the nationwide public
safety broadband network.
(ii) Commission approval or disapproval.--Upon
submission of a State plan under clause (i), the Commission
shall either approve or disapprove the plan.
(iii) Approval.--If the Commission approves a plan
under this subparagraph, the State--
(I) may apply to the NTIA for a grant to construct
the radio access network within the State that includes
the showing described in subparagraph (D); and
(II) shall apply to the NTIA to lease spectrum
capacity from the First Responder Network Authority.
(iv) Disapproval.--If the Commission disapproves a plan
under this subparagraph, the construction, maintenance,
operation, and improvements of the network within the State
shall proceed in accordance with the plan proposed by the
First Responder Network Authority.
(D) Funding requirements.--In order to obtain grant funds
and spectrum capacity leasing rights under subparagraph
(C)(iii), a State shall demonstrate--
(i) that the State has--
(I) the technical capabilities to operate, and the
funding to support, the State radio access network;
(II) has the ability to maintain ongoing
interoperability with the nationwide public safety
broadband network; and
(III) the ability to complete the project within
specified comparable timelines specific to the State;
(ii) the cost-effectiveness of the State plan submitted
under subparagraph (C)(i); and
(iii) comparable security, coverage, and quality of
service to that of the nationwide public safety broadband
network.
(f) User Fees.--If a State chooses to build its own radio access
network, the State shall pay any user fees associated with State use of
elements of the core network.
(g) Prohibition.--
(1) In general.--A State that chooses to build its own radio
access network shall not provide commercial service to consumers or
offer wholesale leasing capacity of the network within the State
except directly through public-private partnerships for
construction, maintenance, operation, and improvement of the
network within the State.
(2) Rule of construction.--Nothing in this subsection shall be
construed to prohibit the State and a secondary user from entering
into a covered leasing agreement. Any revenue gained by the State
from such a leasing agreement shall be used only for constructing,
maintaining, operating, or improving the radio access network of
the State.
(h) Judicial Review.--
(1) In general.--The United States District Court for the
District of Columbia shall have exclusive jurisdiction to review a
decision of the Commission made under subsection (e)(3)(C)(iv).
(2) Standard of review.--The court shall affirm the decision of
the Commission unless--
(A) the decision was procured by corruption, fraud, or
undue means;
(B) there was actual partiality or corruption in the
Commission; or
(C) the Commission was guilty of misconduct in refusing to
hear evidence pertinent and material to the decision or of any
other misbehavior by which the rights of any party have been
prejudiced.
SEC. 6303. PUBLIC SAFETY WIRELESS COMMUNICATIONS RESEARCH AND
DEVELOPMENT.
(a) NIST Directed Research and Development Program.--From amounts
made available from the Public Safety Trust Fund, the Director of NIST,
in consultation with the Commission, the Secretary of Homeland
Security, and the National Institute of Justice of the Department of
Justice, as appropriate, shall conduct research and assist with the
development of standards, technologies, and applications to advance
wireless public safety communications.
(b) Required Activities.--In carrying out the requirement under
subsection (a), the Director of NIST, in consultation with the First
Responder Network Authority and the public safety advisory committee
established under section 6205(a), shall--
(1) document public safety wireless communications technical
requirements;
(2) accelerate the development of the capability for
communications between currently deployed public safety narrowband
systems and the nationwide public safety broadband network;
(3) establish a research plan, and direct research, that
addresses the wireless communications needs of public safety
entities beyond what can be provided by the current generation of
broadband technology;
(4) accelerate the development of mission critical voice,
including device-to-device ``talkaround'' capability over broadband
networks, public safety prioritization, authentication
capabilities, and standard application programing interfaces for
the nationwide public safety broadband network, if necessary and
practical;
(5) accelerate the development of communications technology and
equipment that can facilitate the eventual migration of public
safety narrowband communications to the nationwide public safety
broadband network; and
(6) convene working groups of relevant government and
commercial parties to achieve the requirements in paragraphs (1)
through (5).
Subtitle D--Spectrum Auction Authority
SEC. 6401. DEADLINES FOR AUCTION OF CERTAIN SPECTRUM.
(a) Clearing Certain Federal Spectrum.--
(1) In general.--The President shall--
(A) not later than 3 years after the date of the enactment
of this Act, begin the process of withdrawing or modifying the
assignment to a Federal Government station of the
electromagnetic spectrum described in paragraph (2); and
(B) not later than 30 days after completing the withdrawal
or modification, notify the Commission that the withdrawal or
modification is complete.
(2) Spectrum described.--The electromagnetic spectrum described
in this paragraph is the 15 megahertz of spectrum between 1675
megahertz and 1710 megahertz identified under paragraph (3).
(3) Identification by secretary of commerce.--Not later than 1
year after the date of the enactment of this Act, the Secretary of
Commerce shall submit to the President a report identifying 15
megahertz of spectrum between 1675 megahertz and 1710 megahertz for
reallocation from Federal use to non-Federal use.
(b) Reallocation and Auction.--
(1) In general.--Notwithstanding paragraph (15)(A) of section
309(j) of the Communications Act of 1934 (47 U.S.C. 309(j)), not
later than 3 years after the date of the enactment of this Act, the
Commission shall, except as provided in paragraph (4)--
(A) allocate the spectrum described in paragraph (2) for
commercial use; and
(B) through a system of competitive bidding under such
section, grant new initial licenses for the use of such
spectrum, subject to flexible-use service rules.
(2) Spectrum described.--The spectrum described in this
paragraph is the following:
(A) The frequencies between 1915 megahertz and 1920
megahertz.
(B) The frequencies between 1995 megahertz and 2000
megahertz.
(C) The frequencies described in subsection (a)(2).
(D) The frequencies between 2155 megahertz and 2180
megahertz.
(E) Fifteen megahertz of contiguous spectrum to be
identified by the Commission.
(3) Proceeds to cover 110 percent of federal relocation or
sharing costs.--Nothing in paragraph (1) shall be construed to
relieve the Commission from the requirements of section
309(j)(16)(B) of the Communications Act of 1934 (47 U.S.C.
309(j)(16)(B)).
(4) Determination by commission.--If the Commission determines
that the band of frequencies described in paragraph (2)(A) or the
band of frequencies described in paragraph (2)(B) cannot be used
without causing harmful interference to commercial mobile service
licensees in the frequencies between 1930 megahertz and 1995
megahertz, the Commission may not--
(A) allocate such band for commercial use under paragraph
(1)(A); or
(B) grant licenses under paragraph (1)(B) for the use of
such band.
(c) Auction Proceeds.--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 ``(D), and (E),'' and
inserting ``(D), (E), (F), and (G),'';
(2) in subparagraph (C)(i), by striking ``subparagraph
(E)(ii)'' and inserting ``subparagraphs (D)(ii), (E)(ii), (F), and
(G)'';
(3) in subparagraph (D)--
(A) by striking the heading and inserting ``Proceeds from
reallocated federal spectrum.--'';
(B) by striking ``Cash'' and inserting the following:
``(i) In general.--Except as provided in clause (ii),
cash''; and
(C) by adding at the end the following:
``(ii) Certain other proceeds.--Notwithstanding
subparagraph (A) and except as provided in subparagraph
(B), in the case of proceeds (including deposits and
upfront payments from successful bidders) attributable to
the auction of eligible frequencies described in paragraph
(2) of section 113(g) of the National Telecommunications
and Information Administration Organization Act that are
required to be auctioned by section 6401(b)(1)(B) of the
Middle Class Tax Relief and Job Creation Act of 2012, such
portion of such proceeds as is necessary to cover the
relocation or sharing costs (as defined in paragraph (3) of
such section 113(g)) of Federal entities relocated from
such eligible frequencies shall be deposited in the
Spectrum Relocation Fund. The remainder of such proceeds
shall be deposited in the Public Safety Trust Fund
established by section 6413(a)(1) of the Middle Class Tax
Relief and Job Creation Act of 2012.''; and
(4) by adding at the end the following:
``(F) Certain proceeds designated for public safety trust
fund.--Notwithstanding subparagraph (A) and except as provided
in subparagraphs (B) and (D)(ii), the proceeds (including
deposits and upfront payments from successful bidders) from the
use of a system of competitive bidding under this subsection
pursuant to section 6401(b)(1)(B) of the Middle Class Tax
Relief and Job Creation Act of 2012 shall be deposited in the
Public Safety Trust Fund established by section 6413(a)(1) of
such Act.''.
SEC. 6402. GENERAL AUTHORITY FOR INCENTIVE AUCTIONS.
Section 309(j)(8) of the Communications Act of 1934, as amended by
section 6401(c), is further amended by adding at the end the following:
``(G) Incentive auctions.--
``(i) In general.--Notwithstanding subparagraph (A) and
except as provided in subparagraph (B), the Commission may
encourage a licensee to relinquish voluntarily some or all
of its licensed spectrum usage rights in order to permit
the assignment of new initial licenses subject to flexible-
use service rules by sharing with such licensee a portion,
based on the value of the relinquished rights as determined
in the reverse auction required by clause (ii)(I), of the
proceeds (including deposits and upfront payments from
successful bidders) from the use of a competitive bidding
system under this subsection.
``(ii) Limitations.--The Commission may not enter into
an agreement for a licensee to relinquish spectrum usage
rights in exchange for a share of auction proceeds under
clause (i) unless--
``(I) the Commission conducts a reverse auction to
determine the amount of compensation that licensees
would accept in return for voluntarily relinquishing
spectrum usage rights; and
``(II) at least two competing licensees participate
in the reverse auction.
``(iii) Treatment of revenues.--Notwithstanding
subparagraph (A) and except as provided in subparagraph
(B), the proceeds (including deposits and upfront payments
from successful bidders) from any auction, prior to the end
of fiscal year 2022, of spectrum usage rights made
available under clause (i) that are not shared with
licensees under such clause shall be deposited as follows:
``(I) $1,750,000,000 of the proceeds from the
incentive auction of broadcast television spectrum
required by section 6403 of the Middle Class Tax Relief
and Job Creation Act of 2012 shall be deposited in the
TV Broadcaster Relocation Fund established by
subsection (d)(1) of such section.
``(II) All other proceeds shall be deposited--
``(aa) prior to the end of fiscal year 2022, in
the Public Safety Trust Fund established by section
6413(a)(1) of such Act; and
``(bb) after the end of fiscal year 2022, in
the general fund of the Treasury, where such
proceeds shall be dedicated for the sole purpose of
deficit reduction.
``(iv) Congressional notification.--At least 3 months
before any incentive auction conducted under this
subparagraph, the Chairman of the Commission, in
consultation with the Director of the Office of Management
and Budget, shall notify the appropriate committees of
Congress of the methodology for calculating the amounts
that will be shared with licensees under clause (i).
``(v) Definition.--In this subparagraph, the term
`appropriate committees of Congress' means--
``(I) the Committee on Commerce, Science, and
Transportation of the Senate;
``(II) the Committee on Appropriations of the
Senate;
``(III) the Committee on Energy and Commerce of the
House of Representatives; and
``(IV) the Committee on Appropriations of the House
of Representatives.''.
SEC. 6403. SPECIAL REQUIREMENTS FOR INCENTIVE AUCTION OF BROADCAST TV
SPECTRUM.
(a) Reverse Auction to Identify Incentive Amount.--
(1) In general.--The Commission shall conduct a reverse auction
to determine the amount of compensation that each broadcast
television licensee would accept in return for voluntarily
relinquishing some or all of its broadcast television spectrum
usage rights in order to make spectrum available for assignment
through a system of competitive bidding under subparagraph (G) of
section 309(j)(8) of the Communications Act of 1934, as added by
section 6402.
(2) Eligible relinquishments.--A relinquishment of usage rights
for purposes of paragraph (1) shall include the following:
(A) Relinquishing all usage rights with respect to a
particular television channel without receiving in return any
usage rights with respect to another television channel.
(B) Relinquishing all usage rights with respect to an ultra
high frequency television channel in return for receiving usage
rights with respect to a very high frequency television
channel.
(C) Relinquishing usage rights in order to share a
television channel with another licensee.
(3) Confidentiality.--The Commission shall take all reasonable
steps necessary to protect the confidentiality of Commission-held
data of a licensee participating in the reverse auction under
paragraph (1), including withholding the identity of such licensee
until the reassignments and reallocations (if any) under subsection
(b)(1)(B) become effective, as described in subsection (f)(2).
(4) Protection of carriage rights of licensees sharing a
channel.--A broadcast television station that voluntarily
relinquishes spectrum usage rights under this subsection in order
to share a television channel and that possessed carriage rights
under section 338, 614, or 615 of the Communications Act of 1934
(47 U.S.C. 338; 534; 535) on November 30, 2010, shall have, at its
shared location, the carriage rights under such section that would
apply to such station at such location if it were not sharing a
channel.
(b) Reorganization of Broadcast TV Spectrum.--
(1) In general.--For purposes of making available spectrum to
carry out the forward auction under subsection (c)(1), the
Commission--
(A) shall evaluate the broadcast television spectrum
(including spectrum made available through the reverse auction
under subsection (a)(1)); and
(B) may, subject to international coordination along the
border with Mexico and Canada--
(i) make such reassignments of television channels as
the Commission considers appropriate; and
(ii) reallocate such portions of such spectrum as the
Commission determines are available for reallocation.
(2) Factors for consideration.--In making any reassignments or
reallocations under paragraph (1)(B), the Commission shall make all
reasonable efforts to preserve, as of the date of the enactment of
this Act, the coverage area and population served of each broadcast
television licensee, as determined using the methodology described
in OET Bulletin 69 of the Office of Engineering and Technology of
the Commission.
(3) No involuntary relocation from uhf to vhf.--In making any
reassignments under paragraph (1)(B)(i), the Commission may not
involuntarily reassign a broadcast television licensee--
(A) from an ultra high frequency television channel to a
very high frequency television channel; or
(B) from a television channel between the frequencies from
174 megahertz to 216 megahertz to a television channel between
the frequencies from 54 megahertz to 88 megahertz.
(4) Payment of relocation costs.--
(A) In general.--Except as provided in subparagraph (B),
from amounts made available under subsection (d)(2), the
Commission shall reimburse costs reasonably incurred by--
(i) a broadcast television licensee that was reassigned
under paragraph (1)(B)(i) from one ultra high frequency
television channel to a different ultra high frequency
television channel, from one very high frequency television
channel to a different very high frequency television
channel, or, in accordance with subsection (g)(1)(B), from
a very high frequency television channel to an ultra high
frequency television channel, in order for the licensee to
relocate its television service from one channel to the
other;
(ii) a multichannel video programming distributor in
order to continue to carry the signal of a broadcast
television licensee that--
(I) is described in clause (i);
(II) voluntarily relinquishes spectrum usage rights
under subsection (a) with respect to an ultra high
frequency television channel in return for receiving
usage rights with respect to a very high frequency
television channel; or
(III) voluntarily relinquishes spectrum usage
rights under subsection (a) to share a television
channel with another licensee; or
(iii) a channel 37 incumbent user, in order to relocate
to other suitable spectrum, provided that all such users
can be relocated and that the total relocation costs of
such users do not exceed $300,000,000. For the purpose of
this section, the spectrum made available through
relocation of channel 37 incumbent users shall be deemed as
spectrum reclaimed through a reverse auction under section
6403(a).
(B) Regulatory relief.--In lieu of reimbursement for
relocation costs under subparagraph (A), a broadcast television
licensee may accept, and the Commission may grant as it
considers appropriate, a waiver of the service rules of the
Commission to permit the licensee, subject to interference
protections, to make flexible use of the spectrum assigned to
the licensee to provide services other than broadcast
television services. Such waiver shall only remain in effect
while the licensee provides at least 1 broadcast television
program stream on such spectrum at no charge to the public.
(C) Limitation.--The Commission may not make reimbursements
under subparagraph (A) for lost revenues.
(D) Deadline.--The Commission shall make all reimbursements
required by subparagraph (A) not later than the date that is 3
years after the completion of the forward auction under
subsection (c)(1).
(5) Low-power television usage rights.--Nothing in this
subsection shall be construed to alter the spectrum usage rights of
low-power television stations.
(c) Forward Auction.--
(1) Auction required.--The Commission shall conduct a forward
auction in which--
(A) the Commission assigns licenses for the use of the
spectrum that the Commission reallocates under subsection
(b)(1)(B)(ii); and
(B) the amount of the proceeds that the Commission shares
under clause (i) of section 309(j)(8)(G) of the Communications
Act of 1934 with each licensee whose bid the Commission accepts
in the reverse auction under subsection (a)(1) is not less than
the amount of such bid.
(2) Minimum proceeds.--
(A) In general.--If the amount of the proceeds from the
forward auction under paragraph (1) is not greater than the sum
described in subparagraph (B), no licenses shall be assigned
through such forward auction, no reassignments or reallocations
under subsection (b)(1)(B) shall become effective, and the
Commission may not revoke any spectrum usage rights by reason
of a bid that the Commission accepts in the reverse auction
under subsection (a)(1).
(B) Sum described.--The sum described in this subparagraph
is the sum of--
(i) the total amount of compensation that the
Commission must pay successful bidders in the reverse
auction under subsection (a)(1);
(ii) the costs of conducting such forward auction that
the salaries and expenses account of the Commission is
required to retain under section 309(j)(8)(B) of the
Communications Act of 1934 (47 U.S.C. 309(j)(8)(B)); and
(iii) the estimated costs for which the Commission is
required to make reimbursements under subsection (b)(4)(A).
(C) Administrative costs.--The amount of the proceeds from
the forward auction under paragraph (1) that the salaries and
expenses account of the Commission is required to retain under
section 309(j)(8)(B) of the Communications Act of 1934 (47
U.S.C. 309(j)(8)(B)) shall be sufficient to cover the costs
incurred by the Commission in conducting the reverse auction
under subsection (a)(1), conducting the evaluation of the
broadcast television spectrum under subparagraph (A) of
subsection (b)(1), and making any reassignments or
reallocations under subparagraph (B) of such subsection, in
addition to the costs incurred by the Commission in conducting
such forward auction.
(3) Factor for consideration.--In conducting the forward
auction under paragraph (1), the Commission shall consider
assigning licenses that cover geographic areas of a variety of
different sizes.
(d) TV Broadcaster Relocation Fund.--
(1) Establishment.--There is established in the Treasury of the
United States a fund to be known as the TV Broadcaster Relocation
Fund.
(2) Payment of relocation costs.--Any amounts borrowed under
paragraph (3)(A) and any amounts in the TV Broadcaster Relocation
Fund that are not necessary for reimbursement of the general fund
of the Treasury for such borrowed amounts shall be available to the
Commission to make the payments required by subsection (b)(4)(A).
(3) Borrowing authority.--
(A) In general.--Beginning on the date when any
reassignments or reallocations under subsection (b)(1)(B)
become effective, as provided in subsection (f)(2), and ending
when $1,000,000,000 has been deposited in the TV Broadcaster
Relocation Fund, the Commission may borrow from the Treasury of
the United States an amount not to exceed $1,000,000,000 to use
toward the payments required by subsection (b)(4)(A).
(B) Reimbursement.--The Commission shall reimburse the
general fund of the Treasury, without interest, for any amounts
borrowed under subparagraph (A) as funds are deposited into the
TV Broadcaster Relocation Fund.
(4) Transfer of unused funds.--If any amounts remain in the TV
Broadcaster Relocation Fund after the date that is 3 years after
the completion of the forward auction under subsection (c)(1), the
Secretary of the Treasury shall--
(A) prior to the end of fiscal year 2022, transfer such
amounts to the Public Safety Trust Fund established by section
6413(a)(1); and
(B) after the end of fiscal year 2022, transfer such
amounts to the general fund of the Treasury, where such amounts
shall be dedicated for the sole purpose of deficit reduction.
(e) Numerical Limitation on Auctions and Reorganization.--The
Commission may not complete more than one reverse auction under
subsection (a)(1) or more than one reorganization of the broadcast
television spectrum under subsection (b).
(f) Timing.--
(1) Contemporaneous auctions and reorganization permitted.--The
Commission may conduct the reverse auction under subsection (a)(1),
any reassignments or reallocations under subsection (b)(1)(B), and
the forward auction under subsection (c)(1) on a contemporaneous
basis.
(2) Effectiveness of reassignments and reallocations.--
Notwithstanding paragraph (1), no reassignments or reallocations
under subsection (b)(1)(B) shall become effective until the
completion of the reverse auction under subsection (a)(1) and the
forward auction under subsection (c)(1), and, to the extent
practicable, all such reassignments and reallocations shall become
effective simultaneously.
(3) Deadline.--The Commission may not conduct the reverse
auction under subsection (a)(1) or the forward auction under
subsection (c)(1) after the end of fiscal year 2022.
(4) Limit on discretion regarding auction timing.--Section
309(j)(15)(A) of the Communications Act of 1934 (47 U.S.C.
309(j)(15)(A)) shall not apply in the case of an auction conducted
under this section.
(g) Limitation on Reorganization Authority.--
(1) In general.--During the period described in paragraph (2),
the Commission may not--
(A) involuntarily modify the spectrum usage rights of a
broadcast television licensee or reassign such a licensee to
another television channel except--
(i) in accordance with this section; or
(ii) in the case of a violation by such licensee of the
terms of its license or a specific provision of a statute
administered by the Commission, or a regulation of the
Commission promulgated under any such provision; or
(B) reassign a broadcast television licensee from a very
high frequency television channel to an ultra high frequency
television channel, unless--
(i) such a reassignment will not decrease the total
amount of ultra high frequency spectrum made available for
reallocation under this section; or
(ii) a request from such licensee for the reassignment
was pending at the Commission on May 31, 2011.
(2) Period described.--The period described in this paragraph
is the period beginning on the date of the enactment of this Act
and ending on the earliest of--
(A) the first date when the reverse auction under
subsection (a)(1), the reassignments and reallocations (if any)
under subsection (b)(1)(B), and the forward auction under
subsection (c)(1) have been completed;
(B) the date of a determination by the Commission that the
amount of the proceeds from the forward auction under
subsection (c)(1) is not greater than the sum described in
subsection (c)(2)(B); or
(C) September 30, 2022.
(h) Protest Right Inapplicable.--The right of a licensee to protest
a proposed order of modification of its license under section 316 of
the Communications Act of 1934 (47 U.S.C. 316) shall not apply in the
case of a modification made under this section.
(i) Commission Authority.--Nothing in subsection (b) shall be
construed to--
(1) expand or contract the authority of the Commission, except
as otherwise expressly provided; or
(2) prevent the implementation of the Commission's ``White
Spaces'' Second Report and Order and Memorandum Opinion and Order
(FCC 08-260, adopted November 4, 2008) in the spectrum that remains
allocated for broadcast television use after the reorganization
required by such subsection.
SEC. 6404. CERTAIN CONDITIONS ON AUCTION PARTICIPATION PROHIBITED.
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:
``(17) Certain conditions on auction participation
prohibited.--
``(A) In general.--Notwithstanding any other provision of
law, the Commission may not prevent a person from participating
in a system of competitive bidding under this subsection if
such person--
``(i) complies with all the auction procedures and
other requirements to protect the auction process
established by the Commission; and
``(ii) either--
``(I) meets the technical, financial, character,
and citizenship qualifications that the Commission may
require under section 303(l)(1), 308(b), or 310 to hold
a license; or
``(II) would meet such license qualifications by
means approved by the Commission prior to the grant of
the license.
``(B) Clarification of authority.--Nothing in subparagraph
(A) affects any authority the Commission has to adopt and
enforce rules of general applicability, including rules
concerning spectrum aggregation that promote competition.''.
SEC. 6405. EXTENSION OF AUCTION AUTHORITY.
Section 309(j)(11) of the Communications Act of 1934 (47 U.S.C.
309(j)(11)) is amended by striking ``2012'' and inserting ``2022''.
SEC. 6406. UNLICENSED USE IN THE 5 GHZ BAND.
(a) Modification of Commission Regulations to Allow Certain
Unlicensed Use.--
(1) In general.--Subject to paragraph (2), not later than 1
year after the date of the enactment of this Act, the Commission
shall begin a proceeding to modify part 15 of title 47, Code of
Federal Regulations, to allow unlicensed U-NII devices to operate
in the 5350-5470 MHz band.
(2) Required determinations.--The Commission may make the
modification described in paragraph (1) only if the Commission, in
consultation with the Assistant Secretary, determines that--
(A) licensed users will be protected by technical
solutions, including use of existing, modified, or new
spectrum-sharing technologies and solutions, such as dynamic
frequency selection; and
(B) the primary mission of Federal spectrum users in the
5350-5470 MHz band will not be compromised by the introduction
of unlicensed devices.
(b) Study by NTIA.--
(1) In general.--The Assistant Secretary, in consultation with
the Department of Defense and other impacted agencies, shall
conduct a study evaluating known and proposed spectrum-sharing
technologies and the risk to Federal users if unlicensed U-NII
devices were allowed to operate in the 5350-5470 MHz band and in
the 5850-5925 MHz band.
(2) Submission.--The Assistant Secretary shall submit to the
Commission and the Committee on Energy and Commerce of the House of
Representatives and the Committee on Commerce, Science, and
Transportation of the Senate--
(A) not later than 8 months after the date of the enactment
of this Act, a report on the portion of the study required by
paragraph (1) with respect to the 5350-5470 MHz band; and
(B) not later than 18 months after the date of the
enactment of this Act, a report on the portion of the study
required by paragraph (1) with respect to the 5850-5925 MHz
band.
(c) Definitions.--In this section:
(1) 5350-5470 mhz band.--The term ``5350-5470 MHz band'' means
the portion of the electromagnetic spectrum between the frequencies
from 5350 megahertz to 5470 megahertz.
(2) 5850-5925 mhz band.--The term ``5850-5925 MHz band'' means
the portion of the electromagnetic spectrum between the frequencies
from 5850 megahertz to 5925 megahertz.
SEC. 6407. GUARD BANDS AND UNLICENSED USE.
(a) In General.--Nothing in subparagraph (G) of section 309(j)(8)
of the Communications Act of 1934, as added by section 6402, or in
section 6403 shall be construed to prevent the Commission from using
relinquished or other spectrum to implement band plans with guard
bands.
(b) Size of Guard Bands.--Such guard bands shall be no larger than
is technically reasonable to prevent harmful interference between
licensed services outside the guard bands.
(c) Unlicensed Use in Guard Bands.--The Commission may permit the
use of such guard bands for unlicensed use.
(d) Database.--Unlicensed use shall rely on a database or
subsequent methodology as determined by the Commission.
(e) Protections Against Harmful Interference.--The Commission may
not permit any use of a guard band that the Commission determines would
cause harmful interference to licensed services.
SEC. 6408. STUDY ON RECEIVER PERFORMANCE AND SPECTRUM EFFICIENCY.
(a) In General.--The Comptroller General of the United States shall
conduct a study to consider efforts to ensure that each transmission
system is designed and operated so that reasonable use of adjacent
spectrum does not excessively impair the functioning of such system.
(b) Required Considerations.--In conducting the study required by
subsection (a), the Comptroller General shall consider--
(1) the value of--
(A) improving receiver performance as it relates to
increasing spectral efficiency;
(B) improving the operation of services that are located in
adjacent spectrum; and
(C) narrowing the guard bands between adjacent spectrum
use;
(2) the role of manufacturers, commercial licensees, and
government users with respect to their transmission systems and the
use of adjacent spectrum;
(3) the feasibility of industry self-compliance with respect to
the design and operational requirements of transmission systems and
the reasonable use of adjacent spectrum; and
(4) the value of action by the Commission and the Assistant
Secretary to establish, by rule, technical requirements or
standards for non-Federal and Federal use, respectively, with
respect to the reasonable use of portions of the radio spectrum
that are adjacent to each other.
(c) Report.--Not later than 1 year after the date of the enactment
of this Act, the Comptroller General shall submit a report on the
results of the study required by subsection (a) to the Committee on
Energy and Commerce of the House of Representatives and the Committee
on Commerce, Science, and Transportation of the Senate.
(d) Transmission System Defined.--In this section, the term
``transmission system'' means any telecommunications, broadcast,
satellite, commercial mobile service, or other communications system
that employs radio spectrum.
SEC. 6409. WIRELESS FACILITIES DEPLOYMENT.
(a) Facility Modifications.--
(1) In general.--Notwithstanding section 704 of the
Telecommunications Act of 1996 (Public Law 104-104) or any other
provision of law, a State or local government may not deny, and
shall approve, any eligible facilities request for a modification
of an existing wireless tower or base station that does not
substantially change the physical dimensions of such tower or base
station.
(2) Eligible facilities request.--For purposes of this
subsection, the term ``eligible facilities request'' means any
request for modification of an existing wireless tower or base
station that involves--
(A) collocation of new transmission equipment;
(B) removal of transmission equipment; or
(C) replacement of transmission equipment.
(3) Applicability of environmental laws.--Nothing in paragraph
(1) shall be construed to relieve the Commission from the
requirements of the National Historic Preservation Act or the
National Environmental Policy Act of 1969.
(b) Federal Easements and Rights-of-way.--
(1) Grant.--If an executive agency, a State, a political
subdivision or agency of a State, or a person, firm, or
organization applies for the grant of an easement or right-of-way
to, in, over, or on a building or other property owned by the
Federal Government for the right to install, construct, and
maintain wireless service antenna structures and equipment and
backhaul transmission equipment, the executive agency having
control of the building or other property may grant to the
applicant, on behalf of the Federal Government, an easement or
right-of-way to perform such installation, construction, and
maintenance.
(2) Application.--The Administrator of General Services shall
develop a common form for applications for easements and rights-of-
way under paragraph (1) for all executive agencies that shall be
used by applicants with respect to the buildings or other property
of each such agency.
(3) Fee.--
(A) In general.--Notwithstanding any other provision of
law, the Administrator of General Services shall establish a
fee for the grant of an easement or right-of-way pursuant to
paragraph (1) that is based on direct cost recovery.
(B) Exceptions.--The Administrator of General Services may
establish exceptions to the fee amount required under
subparagraph (A)--
(i) in consideration of the public benefit provided by
a grant of an easement or right-of-way; and
(ii) in the interest of expanding wireless and
broadband coverage.
(4) Use of fees collected.--Any fee amounts collected by an
executive agency pursuant to paragraph (3) may be made available,
as provided in appropriations Acts, to such agency to cover the
costs of granting the easement or right-of-way.
(c) Master Contracts for Wireless Facility Sitings.--
(1) In general.--Notwithstanding section 704 of the
Telecommunications Act of 1996 or any other provision of law, and
not later than 60 days after the date of the enactment of this Act,
the Administrator of General Services shall--
(A) develop 1 or more master contracts that shall govern
the placement of wireless service antenna structures on
buildings and other property owned by the Federal Government;
and
(B) in developing the master contract or contracts,
standardize the treatment of the placement of wireless service
antenna structures on building rooftops or facades, the
placement of wireless service antenna equipment on rooftops or
inside buildings, the technology used in connection with
wireless service antenna structures or equipment placed on
Federal buildings and other property, and any other key issues
the Administrator of General Services considers appropriate.
(2) Applicability.--The master contract or contracts developed
by the Administrator of General Services under paragraph (1) shall
apply to all publicly accessible buildings and other property owned
by the Federal Government, unless the Administrator of General
Services decides that issues with respect to the siting of a
wireless service antenna structure on a specific building or other
property warrant nonstandard treatment of such building or other
property.
(3) Application.--The Administrator of General Services shall
develop a common form or set of forms for wireless service antenna
structure siting applications under this subsection for all
executive agencies that shall be used by applicants with respect to
the buildings and other property of each such agency.
(d) Executive Agency Defined.--In this section, the term
``executive agency'' has the meaning given such term in section 102 of
title 40, United States Code.
SEC. 6410. FUNCTIONAL RESPONSIBILITY OF NTIA TO ENSURE EFFICIENT USE OF
SPECTRUM.
Section 103(b)(2) of the National Telecommunications and
Information Administration Organization Act (47 U.S.C. 902(b)(2)) is
amended by adding at the end the following:
``(U) The responsibility to promote the best possible and
most efficient use of electromagnetic spectrum resources across
the Federal Government, subject to and consistent with the
needs and missions of Federal agencies.''.
SEC. 6411. SYSTEM CERTIFICATION.
Not later than 6 months after the date of the enactment of this
Act, the Director of the Office of Management and Budget shall update
and revise section 33.4 of OMB Circular A-11 to reflect the
recommendations regarding such Circular made in the Commerce Spectrum
Management Advisory Committee Incentive Subcommittee report, adopted
January 11, 2011.
SEC. 6412. DEPLOYMENT OF 11 GHZ, 18 GHZ, AND 23 GHZ MICROWAVE BANDS.
(a) FCC Report on Rejection Rate.--Not later than 9 months after
the date of the enactment of this Act, the Commission shall submit to
the Committee on Energy and Commerce of the House of Representatives
and the Committee on Commerce, Science, and Transportation of the
Senate a report on the rejection rate for the spectrum described in
subsection (c).
(b) GAO Study on Deployment.--
(1) In general.--The Comptroller General of the United States
shall conduct a study to assess whether the spectrum described in
subsection (c) is being deployed in such a manner that, in areas
with high demand for common carrier licenses for the use of such
spectrum, market forces--
(A) provide adequate incentive for the efficient use of
such spectrum; and
(B) ensure that the Federal Government receives maximum
revenue for such spectrum through competitive bidding under
section 309(j) of the Communications Act of 1934 (47 U.S.C.
309(j)).
(2) Factors for consideration.--In conducting the study
required by paragraph (1), the Comptroller General shall take into
consideration--
(A) spectrum that is adjacent to the spectrum described in
subsection (c) and that was assigned through competitive
bidding under section 309(j) of the Communications Act of 1934;
and
(B) the rejection rate for the spectrum described in
subsection (c), current as of the time of the assessment and as
projected for the future, in markets in which there is a high
demand for common carrier licenses for the use of such
spectrum.
(3) Report.--Not later than 9 months after the date of the
enactment of this Act, the Comptroller General shall submit a
report on the study required by paragraph (1) to--
(A) the Commission; and
(B) the Committee on Energy and Commerce of the House of
Representatives and the Committee on Commerce, Science, and
Transportation of the Senate.
(c) Spectrum Described.--The spectrum described in this subsection
is the portions of the electromagnetic spectrum between the frequencies
from 10,700 megahertz to 11,700 megahertz, from 17,700 megahertz to
19,700 megahertz, and from 21,200 megahertz to 23,600 megahertz.
(d) Rejection Rate Defined.--In this section, the term ``rejection
rate'' means the number and percent of applications (whether made to
the Commission or to a third-party coordinator) for common carrier use
of spectrum that were not granted because of lack of availability of
such spectrum or interference concerns of existing licensees.
(e) No Additional Funds Authorized.--Funds necessary to carry out
this section shall be derived from funds otherwise authorized to be
appropriated.
SEC. 6413. PUBLIC SAFETY TRUST FUND.
(a) Establishment of Public Safety Trust Fund.--
(1) In general.--There is established in the Treasury of the
United States a trust fund to be known as the Public Safety Trust
Fund.
(2) Availability.--Amounts deposited in the Public Safety Trust
Fund shall remain available through fiscal year 2022. Any amounts
remaining in the Fund after the end of such fiscal year shall be
deposited in the general fund of the Treasury, where such amounts
shall be dedicated for the sole purpose of deficit reduction.
(b) Use of Fund.--As amounts are deposited in the Public Safety
Trust Fund, such amounts shall be used to make the following deposits
or payments in the following order of priority:
(1) Repayment of amount borrowed for first responder network
authority.--An amount not to exceed $2,000,000,000 shall be
available to the NTIA to reimburse the general fund of the Treasury
for any amounts borrowed under section 6207.
(2) State and local implementation fund.--$135,000,000 shall be
deposited in the State and Local Implementation Fund established by
section 6301.
(3) Buildout by first responder network authority.--
$7,000,000,000, reduced by the amount borrowed under section 6207,
shall be deposited in the Network Construction Fund established by
section 6206.
(4) Public safety research.--$100,000,000 shall be available to
the Director of NIST to carry out section 6303.
(5) Deficit reduction.--$20,400,000,000 shall be deposited in
the general fund of the Treasury, where such amount shall be
dedicated for the sole purpose of deficit reduction.
(6) 9-1-1, e9-1-1, and next generation 9-1-1 implementation
grants.--$115,000,000 shall be available to the Assistant Secretary
and the Administrator of the National Highway Traffic Safety
Administration to carry out the grant program under section 158 of
the National Telecommunications and Information Administration
Organization Act, as amended by section 6503 of this title.
(7) Additional public safety research.--$200,000,000 shall be
available to the Director of NIST to carry out section 6303.
(8) Additional deficit reduction.--Any remaining amounts
deposited in the Public Safety Trust Fund shall be deposited in the
general fund of the Treasury, where such amounts shall be dedicated
for the sole purpose of deficit reduction.
(c) Investment.--Amounts in the Public Safety Trust Fund shall be
invested in accordance with section 9702 of title 31, United States
Code, and any interest on, and proceeds from, any such investment shall
be credited to, and become a part of, the Fund.
SEC. 6414. STUDY ON EMERGENCY COMMUNICATIONS BY AMATEUR RADIO AND
IMPEDIMENTS TO AMATEUR RADIO COMMUNICATIONS.
(a) In General.--Not later than 180 days after the date of the
enactment of this Act, the Commission, in consultation with the Office
of Emergency Communications in the Department of Homeland Security,
shall--
(1) complete a study on the uses and capabilities of amateur
radio service communications in emergencies and disaster relief;
and
(2) submit to the Committee on Energy and Commerce of the House
of Representatives and the Committee on Commerce, Science, and
Transportation of the Senate a report on the findings of such
study.
(b) Contents.--The study required by subsection (a) shall include--
(1)(A) a review of the importance of emergency amateur radio
service communications relating to disasters, severe weather, and
other threats to lives and property in the United States; and
(B) recommendations for--
(i) enhancements in the voluntary deployment of amateur
radio operators in disaster and emergency communications and
disaster relief efforts; and
(ii) improved integration of amateur radio operators in the
planning and furtherance of initiatives of the Federal
Government; and
(2)(A) an identification of impediments to enhanced amateur
radio service communications, such as the effects of unreasonable
or unnecessary private land use restrictions on residential antenna
installations; and
(B) recommendations regarding the removal of such impediments.
(c) Expertise.--In conducting the study required by subsection (a),
the Commission shall use the expertise of stakeholder entities and
organizations, including the amateur radio, emergency response, and
disaster communications communities.
Subtitle E--Next Generation 9-1-1 Advancement Act of 2012
SEC. 6501. SHORT TITLE.
This subtitle may be cited as the ``Next Generation 9-1-1
Advancement Act of 2012''.
SEC. 6502. DEFINITIONS.
In this subtitle, the following definitions shall apply:
(1) 9-1-1 services and e9-1-1 services.--The terms ``9-1-1
services'' and ``E9-1-1 services'' shall have the meaning given
those terms in section 158 of the National Telecommunications and
Information Administration Organization Act (47 U.S.C. 942), as
amended by this subtitle.
(2) Multi-line telephone system.--The term ``multi-line
telephone system'' or ``MLTS'' means a system comprised of common
control units, telephone sets, control hardware and software and
adjunct systems, including network and premises based systems, such
as Centrex and VoIP, as well as PBX, Hybrid, and Key Telephone
Systems (as classified by the Commission under part 68 of title 47,
Code of Federal Regulations), and includes systems owned or leased
by governmental agencies and non-profit entities, as well as for
profit businesses.
(3) Office.--The term ``Office'' means the 9-1-1 Implementation
Coordination Office established under section 158 of the National
Telecommunications and Information Administration Organization Act
(47 U.S.C. 942), as amended by this subtitle.
SEC. 6503. COORDINATION OF 9-1-1 IMPLEMENTATION.
Section 158 of the National Telecommunications and Information
Administration Organization Act (47 U.S.C. 942) is amended to read as
follows:
``SEC. 158. COORDINATION OF 9-1-1, E9-1-1, AND NEXT GENERATION 9-1-
1 IMPLEMENTATION.
``(a) 9-1-1 Implementation Coordination Office.--
``(1) Establishment and continuation.--The Assistant Secretary
and the Administrator of the National Highway Traffic Safety
Administration shall--
``(A) establish and further a 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 9-1-1 services; and
``(B) establish a 9-1-1 Implementation Coordination Office
to implement the provisions of this section.
``(2) Management plan.--
``(A) Development.--The Assistant Secretary and the
Administrator shall develop a management plan for the grant
program established under this section, including by
developing--
``(i) plans related to the organizational structure of
such program; and
``(ii) funding profiles for each fiscal year of the
duration of such program.
``(B) Submission to congress.--Not later than 90 days after
the date of enactment of the Next Generation 9-1-1 Advancement
Act of 2012, the Assistant Secretary and the Administrator
shall submit the management plan developed under subparagraph
(A) to--
``(i) the Committees on Commerce, Science, and
Transportation and Appropriations of the Senate; and
``(ii) the Committees on Energy and Commerce and
Appropriations of the House of Representatives.
``(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
coordination and communication with respect to the
implementation of 9-1-1 services, E9-1-1 services, and Next
Generation 9-1-1 services;
``(B) develop, collect, and disseminate information
concerning practices, procedures, and technology used in the
implementation of 9-1-1 services, E9-1-1 services, and Next
Generation 9-1-1 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 an 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 9-1-1 services, E9-1-1 services, and Next Generation 9-1-1
services.
``(b) 9-1-1, E9-1-1, and Next Generation 9-1-1 Implementation
Grants.--
``(1) Matching grants.--The Assistant Secretary and the
Administrator, acting through the Office, shall provide grants to
eligible entities for--
``(A) the implementation and operation of 9-1-1 services,
E9-1-1 services, migration to an IP-enabled emergency network,
and adoption and operation of Next Generation 9-1-1 services
and applications;
``(B) the implementation of IP-enabled emergency services
and applications enabled by Next Generation 9-1-1 services,
including the establishment of IP backbone networks and the
application layer software infrastructure needed to
interconnect the multitude of emergency response organizations;
and
``(C) training public safety personnel, including call-
takers, first responders, and other individuals and
organizations who are part of the emergency response chain in
9-1-1 services.
``(2) Matching requirement.--The Federal share of the cost of a
project eligible for a grant under this section shall not exceed 60
percent.
``(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 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 9-1-1 services, except that such
designation need not vest such coordinator with direct
legal authority to implement 9-1-1 services, E9-1-1
services, or Next Generation 9-1-1 services or to manage
emergency communications operations;
``(iii) has established a plan for the coordination and
implementation of 9-1-1 services, E9-1-1 services, and Next
Generation 9-1-1 services; and
``(iv) has integrated telecommunications services
involved in the implementation and delivery of 9-1-1
services, E9-1-1 services, and Next Generation 9-1-1
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) Criteria.--Not later than 120 days after the date of
enactment of the Next Generation 9-1-1 Advancement Act of 2012, the
Assistant Secretary and the Administrator shall issue regulations,
after providing the public with notice and an opportunity to
comment, prescribing the criteria for selection for grants under
this section. The criteria shall include performance requirements
and a timeline for completion of any project to be financed by a
grant under this section. The Assistant Secretary and the
Administrator shall update such regulations as necessary.
``(c) Diversion of 9-1-1 Charges.--
``(1) Designated 9-1-1 charges.--For the purposes of this
subsection, the term `designated 9-1-1 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 9-1-1 services, E9-1-1 services, or Next
Generation 9-1-1 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 9-1-1 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 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 9-1-1 charges for any purpose other than the
purposes for which such charges are designated or presented,
eliminates such charges, or redesignates such charges for purposes
other than the implementation or operation of 9-1-1 services, E9-1-
1 services, or Next Generation 9-1-1 services, 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 (2) 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) Funding and Termination.--
``(1) In general.--From the amounts made available to the
Assistant Secretary and the Administrator under section 6413(b)(6)
of the Middle Class Tax Relief and Job Creation Act of 2012, the
Assistant Secretary and the Administrator are authorized to provide
grants under this section through the end of fiscal year 2022. Not
more than 5 percent of such amounts may be obligated or expended to
cover the administrative costs of carrying out this section.
``(2) Termination.--Effective on October 1, 2022, the authority
provided by this section terminates and this section shall have no
effect.
``(e) Definitions.--In this section, the following definitions
shall apply:
``(1) 9-1-1 services.--The term `9-1-1 services' includes both
E9-1-1 services and Next Generation 9-1-1 services.
``(2) E9-1-1 services.--The term `E9-1-1 services' means both
phase I and phase II enhanced 9-1-1 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 Next Generation 9-1-1
Advancement Act of 2012, or as subsequently revised by the
Commission.
``(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.--The term `eligible entity'
includes public authorities, boards, commissions, and similar
bodies created by one or more eligible entities described in
subparagraph (A) to provide 9-1-1 services, E9-1-1 services, or
Next Generation 9-1-1 services.
``(C) Exception.--The term `eligible entity' 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) Emergency call.--The term `emergency call' refers to any
real-time communication with a public safety answering point or
other emergency management or response agency, including--
``(A) through voice, text, or video and related data; and
``(B) nonhuman-initiated automatic event alerts, such as
alarms, telematics, or sensor data, which may also include
real-time voice, text, or video communications.
``(5) Next generation 9-1-1 services.--The term `Next
Generation 9-1-1 services' means an IP-based system comprised of
hardware, software, data, and operational policies and procedures
that--
``(A) provides standardized interfaces from emergency call
and message services to support emergency communications;
``(B) processes all types of emergency calls, including
voice, data, and multimedia information;
``(C) acquires and integrates additional emergency call
data useful to call routing and handling;
``(D) delivers the emergency calls, messages, and data to
the appropriate public safety answering point and other
appropriate emergency entities;
``(E) supports data or video communications needs for
coordinated incident response and management; and
``(F) provides broadband service to public safety answering
points or other first responder entities.
``(6) Office.--The term `Office' means the 9-1-1 Implementation
Coordination Office.
``(7) Public safety answering point.--The term `public safety
answering point' has the meaning given the term in section 222 of
the Communications Act of 1934 (47 U.S.C. 222).
``(8) State.--The term `State' means any State of the United
States, the District of Columbia, Puerto Rico, American Samoa,
Guam, the United States Virgin Islands, the Northern Mariana
Islands, and any other territory or possession of the United
States.''.
SEC. 6504. REQUIREMENTS FOR MULTI-LINE TELEPHONE SYSTEMS.
(a) In General.--Not later than 270 days after the date of the
enactment of this Act, the Administrator of General Services, in
conjunction with the Office, shall issue a report to Congress
identifying the 9-1-1 capabilities of the multi-line telephone system
in use by all Federal agencies in all Federal buildings and properties.
(b) Commission Action.--
(1) In general.--Not later than 90 days after the date of the
enactment of this Act, the Commission shall issue a public notice
seeking comment on the feasibility of MLTS manufacturers including
within all such systems manufactured or sold after a date certain,
to be determined by the Commission, one or more mechanisms to
provide a sufficiently precise indication of a 9-1-1 caller's
location, while avoiding the imposition of undue burdens on MLTS
manufacturers, providers, and operators.
(2) Specific requirement.--The public notice under paragraph
(1) shall seek comment on the National Emergency Number
Association's ``Technical Requirements Document On Model
Legislation E9-1-1 for Multi-Line Telephone Systems'' (NENA 06-750,
Version 2).
SEC. 6505. GAO STUDY OF STATE AND LOCAL USE OF 9-1-1 SERVICE CHARGES.
(a) In General.--Not later than 60 days after the date of the
enactment of this Act, the Comptroller General of the United States
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 9-1-1 services or enhanced 9-1-1 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.--Not later than 18 months after initiating the study
required by subsection (a), the Comptroller General shall prepare and
submit a report on the results of the study to the Committee on
Commerce, Science, and Transportation of the Senate and the Committee
on Energy and Commerce of the House of Representatives 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. 6506. PARITY OF PROTECTION FOR PROVISION OR USE OF NEXT GENERATION
9-1-1 SERVICES.
(a) Immunity.--A provider or user of Next Generation 9-1-1
services, a public safety answering point, and the officers, directors,
employees, vendors, agents, and authorizing government entity (if any)
of such provider, user, or public safety answering point, shall have
immunity and protection from liability under Federal and State law to
the extent provided in subsection (b) with respect to--
(1) the release of subscriber information related to emergency
calls or emergency services;
(2) the use or provision of 9-1-1 services, E9-1-1 services, or
Next Generation 9-1-1 services; and
(3) other matters related to 9-1-1 services, E9-1-1 services,
or Next Generation 9-1-1 services.
(b) Scope of Immunity and Protection From Liability.--The scope and
extent of the immunity and protection from liability afforded under
subsection (a) shall be the same as that provided under section 4 of
the Wireless Communications and Public Safety Act of 1999 (47 U.S.C.
615a) to wireless carriers, public safety answering points, and users
of wireless 9-1-1 service (as defined in paragraphs (4), (3), and (6),
respectively, of section 6 of that Act (47 U.S.C. 615b)) with respect
to such release, use, and other matters.
SEC. 6507. COMMISSION PROCEEDING ON AUTODIALING.
(a) In General.--Not later than 90 days after the date of the
enactment of this Act, the Commission shall initiate a proceeding to
create a specialized Do-Not-Call registry for public safety answering
points.
(b) Features of the Registry.--The Commission shall issue
regulations, after providing the public with notice and an opportunity
to comment, that--
(1) permit verified public safety answering point
administrators or managers to register the telephone numbers of all
9-1-1 trunks and other lines used for the provision of emergency
services to the public or for communications between public safety
agencies;
(2) provide a process for verifying, no less frequently than
once every 7 years, that registered numbers should continue to
appear upon the registry;
(3) provide a process for granting and tracking access to the
registry by the operators of automatic dialing equipment;
(4) protect the list of registered numbers from disclosure or
dissemination by parties granted access to the registry; and
(5) prohibit the use of automatic dialing or ``robocall''
equipment to establish contact with registered numbers.
(c) Enforcement.--The Commission shall--
(1) establish monetary penalties for violations of the
protective regulations established pursuant to subsection (b)(4) of
not less than $100,000 per incident nor more than $1,000,000 per
incident;
(2) establish monetary penalties for violations of the
prohibition on automatically dialing registered numbers established
pursuant to subsection (b)(5) of not less than $10,000 per call nor
more than $100,000 per call; and
(3) provide for the imposition of fines under paragraphs (1) or
(2) that vary depending upon whether the conduct leading to the
violation was negligent, grossly negligent, reckless, or willful,
and depending on whether the violation was a first or subsequent
offence.
SEC. 6508. REPORT ON COSTS FOR REQUIREMENTS AND SPECIFICATIONS OF NEXT
GENERATION 9-1-1 SERVICES.
(a) In General.--Not later than 1 year after the date of the
enactment of this Act, the Office, in consultation with the
Administrator of the National Highway Traffic Safety Administration,
the Commission, and the Secretary of Homeland Security, shall prepare
and submit a report to Congress that analyzes and determines detailed
costs for specific Next Generation 9-1-1 service requirements and
specifications.
(b) Purpose of Report.--The purpose of the report required under
subsection (a) is to serve as a resource for Congress as it considers
creating a coordinated, long-term funding mechanism for the deployment
and operation, accessibility, application development, equipment
procurement, and training of personnel for Next Generation 9-1-1
services.
(c) Required Inclusions.--The report required under subsection (a)
shall include the following:
(1) How costs would be broken out geographically and allocated
among public safety answering points, broadband service providers,
and third-party providers of Next Generation 9-1-1 services.
(2) An assessment of the current state of Next Generation 9-1-1
service readiness among public safety answering points.
(3) How differences in public safety answering points' access
to broadband across the United States may affect costs.
(4) A technical analysis and cost study of different delivery
platforms, such as wireline, wireless, and satellite.
(5) An assessment of the architectural characteristics,
feasibility, and limitations of Next Generation 9-1-1 service
delivery.
(6) An analysis of the needs for Next Generation 9-1-1 services
of persons with disabilities.
(7) Standards and protocols for Next Generation 9-1-1 services
and for incorporating Voice over Internet Protocol and ``Real-Time
Text'' standards.
SEC. 6509. COMMISSION RECOMMENDATIONS FOR LEGAL AND STATUTORY FRAMEWORK
FOR NEXT GENERATION 9-1-1 SERVICES.
Not later than 1 year after the date of the enactment of this Act,
the Commission, in coordination with the Secretary of Homeland
Security, the Administrator of the National Highway Traffic Safety
Administration, and the Office, shall prepare and submit a report to
Congress that contains recommendations for the legal and statutory
framework for Next Generation 9-1-1 services, consistent with
recommendations in the National Broadband Plan developed by the
Commission pursuant to the American Recovery and Reinvestment Act of
2009, including the following:
(1) A legal and regulatory framework for the development of
Next Generation 9-1-1 services and the transition from legacy 9-1-1
to Next Generation 9-1-1 networks.
(2) Legal mechanisms to ensure efficient and accurate
transmission of 9-1-1 caller information to emergency response
agencies.
(3) Recommendations for removing jurisdictional barriers and
inconsistent legacy regulations including--
(A) proposals that would require States to remove
regulatory roadblocks to Next Generation 9-1-1 services
development, while recognizing existing State authority over 9-
1-1 services;
(B) eliminating outdated 9-1-1 regulations at the Federal
level; and
(C) preempting inconsistent State regulations.
Subtitle F--Telecommunications Development Fund
SEC. 6601. NO ADDITIONAL FEDERAL FUNDS.
Section 309(j)(8)(C)(iii) of the Communications Act of 1934 (47
U.S.C. 309(j)(8)(C)(iii)) is amended to read as follows:
``(iii) the interest accrued to the account shall be
deposited in the general fund of the Treasury, where such
amount shall be dedicated for the sole purpose of deficit
reduction.''.
SEC. 6602. INDEPENDENCE OF THE FUND.
Section 714 of the Communications Act of 1934 (47 U.S.C. 614) is
amended--
(1) by striking subsection (c) and inserting the following:
``(c) Independent Board of Directors.--The Fund shall have a Board
of Directors consisting of 5 people with experience in areas including
finance, investment banking, government banking, communications law and
administrative practice, and public policy. The Board of Directors
shall select annually a Chair from among the directors. A nominating
committee, comprised of the Chair and 2 other directors selected by the
Chair, shall appoint additional directors. The Fund's bylaws shall
regulate the other aspects of the Board of Directors, including
provisions relating to meetings, quorums, committees, and other
matters, all as typically contained in the bylaws of a similar private
investment fund.'';
(2) in subsection (d)--
(A) by striking ``(after consultation with the Commission
and the Secretary of the Treasury)'';
(B) by striking paragraph (1); and
(C) by redesignating paragraphs (2) through (4) as
paragraphs (1) through (3), respectively; and
(3) in subsection (g), by striking ``subsection (d)(2)'' and
inserting ``subsection (d)(1)''.
Subtitle G--Federal Spectrum Relocation
SEC. 6701. RELOCATION OF AND SPECTRUM SHARING BY FEDERAL GOVERNMENT
STATIONS.
(a) In General.--Section 113 of the National Telecommunications and
Information Administration Organization Act (47 U.S.C. 923) is
amended--
(1) in subsection (g)--
(A) by striking the heading and inserting ``Relocation of
and Spectrum Sharing by Federal Government Stations.--'';
(B) by amending paragraph (1) to read as follows:
``(1) Eligible federal entities.--Any Federal entity that
operates a Federal Government station authorized to use a band of
eligible frequencies described in paragraph (2) and that incurs
relocation or sharing costs because of planning for an auction of
spectrum frequencies or the reallocation of spectrum frequencies
from Federal use to exclusive non-Federal use or to shared use
shall receive payment for such relocation or sharing costs from the
Spectrum Relocation Fund, in accordance with this section and
section 118. 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.'';
(C) by amending paragraph (2)(B) to read as follows:
``(B) any other band of frequencies reallocated from
Federal use to non-Federal use or to shared 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)).'';
(D) by amending paragraph (3) to read as follows:
``(3) Relocation or sharing costs defined.--
``(A) In general.--For purposes of this section and section
118, the term `relocation or sharing costs' means the costs
incurred by a Federal entity in connection with the auction of
spectrum frequencies previously assigned to such entity or the
sharing of spectrum frequencies assigned to such entity
(including the auction or a planned auction of the rights to
use spectrum frequencies on a shared basis with such entity) in
order to achieve comparable capability of systems as before the
relocation or sharing arrangement. Such term includes, with
respect to relocation or sharing, as the case may be--
``(i) the costs of any modification or replacement of
equipment, spares, associated ancillary equipment,
software, facilities, operating manuals, training, or
compliance with regulations that are attributable to
relocation or sharing;
``(ii) the costs of all engineering, equipment,
software, site acquisition, and construction, as well as
any legitimate and prudent transaction expense, including
term-limited Federal civil servant and contractor staff
necessary to carry out the relocation or sharing activities
of a Federal entity, and reasonable additional costs
incurred by the Federal entity that are attributable to
relocation or sharing, including increased recurring costs
associated with the replacement of facilities;
``(iii) the costs of research, engineering studies,
economic analyses, or other expenses reasonably incurred in
connection with--
``(I) calculating the estimated relocation or
sharing costs that are provided to the Commission
pursuant to paragraph (4)(A);
``(II) determining the technical or operational
feasibility of relocation to 1 or more potential
relocation bands; or
``(III) planning for or managing a relocation or
sharing arrangement (including spectrum coordination
with auction winners);
``(iv) the one-time costs of any modification of
equipment reasonably necessary--
``(I) to accommodate non-Federal use of shared
frequencies; or
``(II) in the case of eligible frequencies
reallocated for exclusive non-Federal use and assigned
through a system of competitive bidding under section
309(j) of the Communications Act of 1934 (47 U.S.C.
309(j)) but with respect to which a Federal entity
retains primary allocation or protected status for a
period of time after the completion of the competitive
bidding process, to accommodate shared Federal and non-
Federal use of such frequencies for such period; and
``(v) the costs associated with the accelerated
replacement of systems and equipment if the acceleration is
necessary to ensure the timely relocation of systems to a
new frequency assignment or the timely accommodation of
sharing of Federal frequencies.
``(B) Comparable capability of systems.--For purposes of
subparagraph (A), comparable capability of systems--
``(i) may be achieved by relocating a Federal
Government station to a new frequency assignment, by
relocating a Federal Government station to a different
geographic location, by modifying Federal Government
equipment to mitigate interference or use less spectrum, in
terms of bandwidth, geography, or time, and thereby
permitting spectrum sharing (including sharing among
relocated Federal entities and incumbents to make spectrum
available for non-Federal use) or relocation, or by
utilizing an alternative technology; and
``(ii) includes the acquisition of state-of-the-art
replacement systems intended to meet comparable operational
scope, which may include incidental increases in
functionality.'';
(E) in paragraph (4)--
(i) in the heading, by striking ``relocations costs''
and inserting ``relocation or sharing costs'';
(ii) by striking ``relocation costs'' each place it
appears and inserting ``relocation or sharing costs''; and
(iii) in subparagraph (A), by inserting ``or sharing''
after ``such relocation'';
(F) in paragraph (5)--
(i) by striking ``relocation costs'' and inserting
``relocation or sharing costs''; and
(ii) by inserting ``or sharing'' after ``for
relocation''; and
(G) by amending paragraph (6) to read as follows:
``(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 described in
paragraph (2) to frequencies or facilities of comparable capability
and to ensure the timely implementation of arrangements for the
sharing of frequencies described in such paragraph. Upon a finding
by the NTIA that a Federal entity has achieved comparable
capability of systems, the NTIA shall terminate or limit the
entity's authorization and notify the Commission that the entity's
relocation has been completed or sharing arrangement has been
implemented. 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 or
sharing submitted by the Director of the Office of Management and
Budget under section 118(d)(2)(C).'';
(2) by redesignating subsections (h) and (i) as subsections (k)
and (l), respectively; and
(3) by inserting after subsection (g) the following:
``(h) Development and Publication of Relocation or Sharing
Transition Plans.--
``(1) Development of transition plan by federal entity.--Not
later than 240 days before the commencement of any auction of
eligible frequencies described in subsection (g)(2), a Federal
entity authorized to use any such frequency shall submit to the
NTIA and to the Technical Panel established by paragraph (3) a
transition plan for the implementation by such entity of the
relocation or sharing arrangement. The NTIA shall specify, after
public input, a common format for all Federal entities to follow in
preparing transition plans under this paragraph.
``(2) Contents of transition plan.--The transition plan
required by paragraph (1) shall include the following information:
``(A) The use by the Federal entity of the eligible
frequencies to be auctioned, current as of the date of the
submission of the plan.
``(B) The geographic location of the facilities or systems
of the Federal entity that use such frequencies.
``(C) The frequency bands used by such facilities or
systems, described by geographic location.
``(D) The steps to be taken by the Federal entity to
relocate its spectrum use from such frequencies or to share
such frequencies, including timelines for specific geographic
locations in sufficient detail to indicate when use of such
frequencies at such locations will be discontinued by the
Federal entity or shared between the Federal entity and non-
Federal users.
``(E) The specific interactions between the eligible
Federal entity and the NTIA needed to implement the transition
plan.
``(F) The name of the officer or employee of the Federal
entity who is responsible for the relocation or sharing efforts
of the entity and who is authorized to meet and negotiate with
non-Federal users regarding the transition.
``(G) The plans and timelines of the Federal entity for--
``(i) using funds received from the Spectrum Relocation
Fund established by section 118;
``(ii) procuring new equipment and additional personnel
needed for relocation or sharing;
``(iii) field-testing and deploying new equipment
needed for relocation or sharing; and
``(iv) hiring and relying on contract personnel, if
any, needed for relocation or sharing.
``(H) Factors that could hinder fulfillment of the
transition plan by the Federal entity.
``(3) Technical panel.--
``(A) Establishment.--There is established within the NTIA
a panel to be known as the Technical Panel.
``(B) Membership.--
``(i) Number and appointment.--The Technical Panel
shall be composed of 3 members, to be appointed as follows:
``(I) One member to be appointed by the Director of
the Office of Management and Budget (in this subsection
referred to as `OMB').
``(II) One member to be appointed by the Assistant
Secretary.
``(III) One member to be appointed by the Chairman
of the Commission.
``(ii) Qualifications.--Each member of the Technical
Panel shall be a radio engineer or a technical expert.
``(iii) Initial appointment.--The initial members of
the Technical Panel shall be appointed not later than 180
days after the date of the enactment of the Middle Class
Tax Relief and Job Creation Act of 2012.
``(iv) Terms.--The term of a member of the Technical
Panel shall be 18 months, and no individual may serve more
than 1 consecutive term.
``(v) Vacancies.--Any member appointed to fill a
vacancy occurring before the expiration of the term for
which the member's predecessor was appointed shall be
appointed only for the remainder of that term. A member may
serve after the expiration of that member's term until a
successor has taken office. A vacancy shall be filled in
the manner in which the original appointment was made.
``(vi) No compensation.--The members of the Technical
Panel shall not receive any compensation for service on the
Technical Panel. If any such member is an employee of the
agency of the official that appointed such member to the
Technical Panel, compensation in the member's capacity as
such an employee shall not be considered compensation under
this clause.
``(C) Administrative support.--The NTIA shall provide the
Technical Panel with the administrative support services
necessary to carry out its duties under this subsection and
subsection (i).
``(D) Regulations.--Not later than 180 days after the date
of the enactment of the Middle Class Tax Relief and Job
Creation Act of 2012, the NTIA shall, after public notice and
comment and subject to approval by the Director of OMB, adopt
regulations to govern the workings of the Technical Panel.
``(E) Certain requirements inapplicable.--The Federal
Advisory Committee Act (5 U.S.C. App.) and sections 552 and
552b of title 5, United States Code, shall not apply to the
Technical Panel.
``(4) Review of plan by technical panel.--
``(A) In general.--Not later than 30 days after the
submission of the plan under paragraph (1), the Technical Panel
shall submit to the NTIA and to the Federal entity a report on
the sufficiency of the plan, including whether the plan
includes the information required by paragraph (2) and an
assessment of the reasonableness of the proposed timelines and
estimated relocation or sharing costs, including the costs of
any proposed expansion of the capabilities of a Federal system
in connection with relocation or sharing.
``(B) Insufficiency of plan.--If the Technical Panel finds
the plan insufficient, the Federal entity shall, not later than
90 days after the submission of the report by the Technical
Panel under subparagraph (A), submit to the Technical Panel a
revised plan. Such revised plan shall be treated as a plan
submitted under paragraph (1).
``(5) Publication of transition plan.--Not later than 120 days
before the commencement of the auction described in paragraph (1),
the NTIA shall make the transition plan publicly available on its
website.
``(6) Updates of transition plan.--As the Federal entity
implements the transition plan, it shall periodically update the
plan to reflect any changed circumstances, including changes in
estimated relocation or sharing costs or the timeline for
relocation or sharing. The NTIA shall make the updates available on
its website.
``(7) Classified and other sensitive information.--
``(A) Classified information.--If any of the information
required to be included in the transition plan of a Federal
entity is classified information (as defined in section 798(b)
of title 18, United States Code), the entity shall--
``(i) include in the plan--
``(I) an explanation of the exclusion of any such
information, which shall be as specific as possible;
and
``(II) all relevant non-classified information that
is available; and
``(ii) discuss as a factor under paragraph (2)(H) the
extent of the classified information and the effect of such
information on the implementation of the relocation or
sharing arrangement.
``(B) Regulations.--Not later than 180 days after the date
of the enactment of the Middle Class Tax Relief and Job
Creation Act of 2012, the NTIA, in consultation with the
Director of OMB and the Secretary of Defense, shall adopt
regulations to ensure that the information publicly released
under paragraph (5) or (6) does not contain classified
information or other sensitive information.
``(i) Dispute Resolution Process.--
``(1) In general.--If a dispute arises between a Federal entity
and a non-Federal user regarding the execution, timing, or cost of
the transition plan submitted by the Federal entity under
subsection (h)(1), the Federal entity or the non-Federal user may
request that the NTIA establish a dispute resolution board to
resolve the dispute.
``(2) Establishment of board.--
``(A) In general.--If the NTIA receives a request under
paragraph (1), it shall establish a dispute resolution board.
``(B) Membership and appointment.--The dispute resolution
board shall be composed of 3 members, as follows:
``(i) A representative of the Office of Management and
Budget (in this subsection referred to as `OMB'), to be
appointed by the Director of OMB.
``(ii) A representative of the NTIA, to be appointed by
the Assistant Secretary.
``(iii) A representative of the Commission, to be
appointed by the Chairman of the Commission.
``(C) Chair.--The representative of OMB shall be the Chair
of the dispute resolution board.
``(D) Vacancies.--Any vacancy in the dispute resolution
board shall be filled in the manner in which the original
appointment was made.
``(E) No compensation.--The members of the dispute
resolution board shall not receive any compensation for service
on the board. If any such member is an employee of the agency
of the official that appointed such member to the board,
compensation in the member's capacity as such an employee shall
not be considered compensation under this subparagraph.
``(F) Termination of board.--The dispute resolution board
shall be terminated after it rules on the dispute that it was
established to resolve and the time for appeal of its decision
under paragraph (7) has expired, unless an appeal has been
taken under such paragraph. If such an appeal has been taken,
the board shall continue to exist until the appeal process has
been exhausted and the board has completed any action required
by a court hearing the appeal.
``(3) Procedures.--The dispute resolution board shall meet
simultaneously with representatives of the Federal entity and the
non-Federal user to discuss the dispute. The dispute resolution
board may require the parties to make written submissions to it.
``(4) Deadline for decision.--The dispute resolution board
shall rule on the dispute not later than 30 days after the request
was made to the NTIA under paragraph (1).
``(5) Assistance from technical panel.--The Technical Panel
established under subsection (h)(3) shall provide the dispute
resolution board with such technical assistance as the board
requests.
``(6) Administrative support.--The NTIA shall provide the
dispute resolution board with the administrative support services
necessary to carry out its duties under this subsection.
``(7) Appeals.--A decision of the dispute resolution board may
be appealed to the United States Court of Appeals for the District
of Columbia Circuit by filing a notice of appeal with that court
not later than 30 days after the date of such decision. Each party
shall bear its own costs and expenses, including attorneys' fees,
for any appeal under this paragraph.
``(8) Regulations.--Not later than 180 days after the date of
the enactment of the Middle Class Tax Relief and Job Creation Act
of 2012, the NTIA shall, after public notice and comment and
subject to approval by OMB, adopt regulations to govern the working
of any dispute resolution boards established under paragraph (2)(A)
and the role of the Technical Panel in assisting any such board.
``(9) Certain requirements inapplicable.--The Federal Advisory
Committee Act (5 U.S.C. App.) and sections 552 and 552b of title 5,
United States Code, shall not apply to a dispute resolution board
established under paragraph (2)(A).
``(j) Relocation Prioritized Over Sharing.--
``(1) In general.--In evaluating a band of frequencies for
possible reallocation for exclusive non-Federal use or shared use,
the NTIA shall give priority to options involving reallocation of
the band for exclusive non-Federal use and shall choose options
involving shared use only when it determines, in consultation with
the Director of the Office of Management and Budget, that
relocation of a Federal entity from the band is not feasible
because of technical or cost constraints.
``(2) Notification of congress when sharing chosen.--If the
NTIA determines under paragraph (1) that relocation of a Federal
entity from the band is not feasible, the NTIA shall notify the
Committee on Commerce, Science, and Transportation of the Senate
and the Committee on Energy and Commerce of the House of
Representatives of the determination, including the specific
technical or cost constraints on which the determination is
based.''.
(b) Conforming Amendment.--Section 309(j) of the Communications Act
of 1934 is further amended by striking ``relocation costs'' each place
it appears and inserting ``relocation or sharing costs''.
SEC. 6702. SPECTRUM RELOCATION FUND.
Section 118 of the National Telecommunications and Information
Administration Organization Act (47 U.S.C. 928) is amended--
(1) by striking ``relocation costs'' each place it appears and
inserting ``relocation or sharing costs'';
(2) by amending subsection (c) to read as follows:
``(c) Use of Funds.--The amounts in the Fund from auctions of
eligible frequencies are authorized to be used to pay relocation or
sharing costs of an eligible Federal entity incurring such costs with
respect to relocation from or sharing of those frequencies.'';
(3) in subsection (d)--
(A) in paragraph (2)--
(i) in subparagraph (A), by inserting ``or sharing''
before the semicolon;
(ii) in subparagraph (B), by inserting ``or sharing''
before the period at the end;
(iii) by redesignating subparagraphs (A) and (B) as
subparagraphs (B) and (C), respectively; and
(iv) by inserting before subparagraph (B), as so
redesignated, the following:
``(A) unless the eligible Federal entity has submitted a
transition plan to the NTIA as required by paragraph (1) of
section 113(h), the Technical Panel has found such plan
sufficient under paragraph (4) of such section, and the NTIA
has made available such plan on its website as required by
paragraph (5) of such section;'';
(B) by striking paragraph (3); and
(C) by adding at the end the following:
``(3) Transfers for pre-auction costs.--
``(A) In general.--Subject to subparagraph (B), the
Director of OMB may transfer to an eligible Federal entity, at
any time (including prior to a scheduled auction), such sums as
may be available in the Fund to pay relocation or sharing costs
related to pre-auction estimates or research, as such costs are
described in section 113(g)(3)(A)(iii).
``(B) Notification.--No funds may be transferred pursuant
to subparagraph (A) unless--
``(i) the notification provided under paragraph (2)(C)
includes a certification from the Director of OMB that--
``(I) funds transferred before an auction will
likely allow for timely implementation of relocation or
sharing, thereby increasing net expected auction
proceeds by an amount not less than the time value of
the amount of funds transferred; and
``(II) the auction is intended to occur not later
than 5 years after transfer of funds; and
``(ii) the transition plan submitted by the eligible
Federal entity under section 113(h)(1) provides--
``(I) to the fullest extent possible, for sharing
and coordination of eligible frequencies with non-
Federal users, including reasonable accommodation by
the eligible Federal entity for the use of eligible
frequencies by non-Federal users during the period that
the entity is relocating its spectrum uses (in this
clause referred to as the `transition period');
``(II) for non-Federal users to be able to use
eligible frequencies during the transition period in
geographic areas where the eligible Federal entity does
not use such frequencies;
``(III) that the eligible Federal entity will,
during the transition period, make itself available for
negotiation and discussion with non-Federal users not
later than 30 days after a written request therefor;
and
``(IV) that the eligible Federal entity will,
during the transition period, make available to a non-
Federal user with appropriate security clearances any
classified information (as defined in section 798(b) of
title 18, United States Code) regarding the relocation
process, on a need-to-know basis, to assist the non-
Federal user in the relocation process with such
eligible Federal entity or other eligible Federal
entities.
``(C) Applicability to certain costs.--
``(i) In general.--The Director of OMB may transfer
under subparagraph (A) not more than $10,000,000 for costs
incurred after June 28, 2010, but before the date of the
enactment of the Middle Class Tax Relief and Job Creation
Act of 2012.
``(ii) Supplement not supplant.--Any amounts
transferred by the Director of OMB pursuant to clause (i)
shall be in addition to any amounts that the Director of
OMB may transfer for costs incurred on or after the date of
the enactment of the Middle Class Tax Relief and Job
Creation Act of 2012.
``(4) Reversion of unused funds.--Any amounts in the Fund that
are remaining after the payment of the relocation or sharing costs
that are payable from the Fund shall revert to and be deposited in
the general fund of the Treasury, for the sole purpose of deficit
reduction, not later than 8 years after the date of the deposit of
such proceeds to the Fund, unless within 60 days in advance of the
reversion of such funds, the Director of OMB, in consultation with
the NTIA, notifies the congressional committees described in
paragraph (2)(C) that such funds are needed to complete or to
implement current or future relocation or sharing arrangements.'';
(4) in subsection (e)--
(A) in paragraph (1)(B)--
(i) in clause (i), by striking ``subsection (d)(2)(A)''
and inserting ``subsection (d)(2)(B)''; and
(ii) in clause (ii), by striking ``subsection
(d)(2)(B)'' and inserting ``subsection (d)(2)(C)''; and
(B) in paragraph (2)--
(i) by striking ``entity's relocation'' and inserting
``relocation of the entity or implementation of the sharing
arrangement by the entity'';
(ii) by inserting ``or the implementation of such
arrangement'' after ``such relocation''; and
(iii) by striking ``subsection (d)(2)(A)'' and
inserting ``subsection (d)(2)(B)''; and
(5) by adding at the end the following:
``(f) Additional Payments From Fund.--
``(1) Amounts available.--Notwithstanding subsections (c)
through (e), after the date of the enactment of the Middle Class
Tax Relief and Job Creation Act of 2012, there are appropriated
from the Fund and available to the Director of OMB for use in
accordance with paragraph (2) not more than 10 percent of the
amounts deposited in the Fund from auctions occurring after such
date of enactment of licenses for the use of spectrum vacated by
eligible Federal entities.
``(2) Use of amounts.--
``(A) In general.--The Director of OMB, in consultation
with the NTIA, may use amounts made available under paragraph
(1) to make payments to eligible Federal entities that are
implementing a transition plan submitted under section
113(h)(1) in order to encourage such entities to complete the
implementation more quickly, thereby encouraging timely access
to the eligible frequencies that are being reallocated for
exclusive non-Federal use or shared use.
``(B) Conditions.--In the case of any payment by the
Director of OMB under subparagraph (A)--
``(i) such payment shall be based on the market value
of the eligible frequencies, the timeliness with which the
eligible Federal entity clears its use of such frequencies,
and the need for such frequencies in order for the entity
to conduct its essential missions;
``(ii) the eligible Federal entity shall use such
payment for the purposes specified in clauses (i) through
(v) of section 113(g)(3)(A) to achieve comparable
capability of systems affected by the reallocation of
eligible frequencies from Federal use to exclusive non-
Federal use or to shared use;
``(iii) such payment may not be made if the amount
remaining in the Fund after such payment will be less than
10 percent of the winning bids in the auction of the
spectrum with respect to which the Federal entity is
incurring relocation or sharing costs; and
``(iv) such payment may not be made until 30 days after
the Director of OMB has notified the congressional
committees described in subsection (d)(2)(C).
``(g) Restriction on Use of Funds.--No amounts in the Fund on the
day before the date of the enactment of the Middle Class Tax Relief and
Job Creation Act of 2012 may be used for any purpose except--
``(1) to pay the relocation or sharing costs incurred by
eligible Federal entities in order to relocate from the frequencies
the auction of which generated such amounts; or
``(2) to pay relocation or sharing costs related to pre-auction
estimates or research, in accordance with subsection (d)(3).''.
SEC. 6703. NATIONAL SECURITY AND OTHER SENSITIVE INFORMATION.
Part B of title I of the National Telecommunications and
Information Administration Organization Act (47 U.S.C. 921 et seq.) is
amended by adding at the end the following:
``SEC. 119. NATIONAL SECURITY AND OTHER SENSITIVE INFORMATION.
``(a) Determination.--If the head of an Executive agency (as
defined in section 105 of title 5, United States Code) determines that
public disclosure of any information contained in a notification or
report required by section 113 or 118 would reveal classified national
security information, or other information for which there is a legal
basis for nondisclosure and the public disclosure of which would be
detrimental to national security, homeland security, or public safety
or would jeopardize a law enforcement investigation, the head of the
Executive agency shall notify the Assistant Secretary of that
determination prior to the release of such information.
``(b) Inclusion in Annex.--The head of the Executive agency shall
place the information with respect to which a determination was made
under subsection (a) in a separate annex to the notification or report
required by section 113 or 118. The annex shall be provided to the
subcommittee of primary jurisdiction of the congressional committee of
primary jurisdiction in accordance with appropriate national security
stipulations but shall not be disclosed to the public or provided to
any unauthorized person through any means.''.
TITLE VII--MISCELLANEOUS PROVISIONS
SEC. 7001. REPEAL OF CERTAIN SHIFTS IN THE TIMING OF CORPORATE
ESTIMATED TAX PAYMENTS.
The following provisions of law (and any modification of any such
provision which is contained in any other provision of law) shall not
apply with respect to any installment of corporate estimated tax:
(1) Section 201(b) of the Corporate Estimated Tax Shift Act of
2009.
(2) Section 561 of the Hiring Incentives to Restore Employment
Act.
(3) Section 505 of the United States-Korea Free Trade Agreement
Implementation Act.
(4) Section 603 of the United States-Colombia Trade Promotion
Agreement Implementation Act.
(5) Section 502 of the United States-Panama Trade Promotion
Agreement Implementation Act.
SEC. 7002. REPEAL OF REQUIREMENT RELATING TO TIME FOR REMITTING CERTAIN
MERCHANDISE PROCESSING FEES.
(a) Repeal.--The Trade Adjustment Assistance Extension Act of 2011
(title II of Public Law 112-40; 125 Stat. 402) is amended by striking
section 263.
(b) Clerical Amendment.--The table of contents for such Act is
amended by striking the item relating to section 263.
SEC. 7003. TREATMENT FOR PAYGO PURPOSES.
The budgetary effects of this Act shall not be entered on either
PAYGO scorecard maintained pursuant to section 4(d) of the Statutory
Pay-As-You-Go Act of 2010.
Speaker of the House of Representatives.
Vice President of the United States and
President of the Senate.