[Congressional Record Volume 143, Number 12 (Tuesday, February 4, 1997)]
[Senate]
[Pages S945-S949]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. McCAIN:
  S. 255. A bill to amend the Communications Act of 1934 to provide for 
the reallocation and auction of a portion of the electromagnetic 
spectrum to enhance law enforcement and public safety 
telecommunications, and for other purposes; to the Committee on 
Commerce, Science, and Transportation.


 THE LAW ENFORCEMENT AND PUBLIC SAFETY TELECOMMUNICATIONS EMPOWERMENT 
                                  ACT

  Mr. McCAIN. Mr. President, I rise to introduce the Law Enforcement 
and Public Safety Telecommunications Empowerment Act. This legislation 
addresses a longstanding need by police, fire departments, and 
emergency medical services for more channels of radio communication and 
for more state-of-the-art technology to use in their efforts to 
safeguard life and property.
  Mr. President, the telecommunications needs of the public safety 
community have been a subject of widespread concern for many years. In 
many instances, channel capacity for safety-of-life communications is 
dangerously low. In many others, budgetary constraints have kept law 
enforcement and other public safety officials from getting new 
communications equipment and services that

[[Page S946]]

would make their transmissions more efficient and reliable.
  Most recently, a Federal advisory committee documented these needs 
for more spectrum. There are clearly ways this can be done. But 
spectrum is a limited, and therefore very valuable, resource, and big 
businesses that would compete for this same spectrum must not be 
allowed to divert it for commercial use. Further, this bill creates 
specific mechanisms that will continue over the years to assure that 
money and equipment are available for the continuing need of those 
whose job is to safeguard our lives, our health, and our property.
  Let me outline the provisions of this bill. First, the bill orders 
the FCC to give public safety radio users four new radio channels. 
These new channels are currently allocated to television use and are 
located between TV channels 60 and 69. Ongoing plans to convert 
television broadcasting to more spectrum-efficient digital transmission 
technology is expected to make this channel reallocation possible 
without significant impact on the television service people receive.
  Next, this legislation provides that the rest of the available 
spectrum between TV channels 60 and 69 will be auctioned to the highest 
bidder for commercial use. Of the money raised, 10 percent, or a sum of 
not less than $200,000,000 or more than $750,000,000, is earmarked for 
distribution to the Governors of each of the States for use in 
purchasing services and equipment that would increase the ability of 
public safety radio users to communicate quickly and easily in times of 
emergency.
  Third, to make sure that the four new public safety radio channels 
are used in as efficient a manner as possible and to provide added 
public safety communications resources tailored to their specific 
needs, this legislation gives the Governors the authority to lease, 
sell, or otherwise dispose of any extra channel capacity they may have. 
This will enable them to procure new technology or services that will 
further improve the effectiveness of public safety communications. The 
remainder of the money raised at auction would be used for deficit 
reduction.
  Mr. President, in closing, this is a fair bill. The spectrum is owned 
by the public and the public should benefit from its use. This plan 
benefits the public in two ways: It helps protect the public by 
augmenting police and fire services, and it helps pay down the deficit.
  Mr. President, I hope my colleagues will support this measure. I ask 
unanimous consent that the text of the bill be printed in the Record.
  There being no objection, the bill was ordered to be printed in the 
Record, as follows:

                                 S. 255

       Be it enacted by the Senate and House of Representatives of 
     the United States of America in Congress assembled,

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``Law Enforcement and Public 
     Safety Telecommunications Empowerment Act''.

     SEC. 2. FINDINGS.

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

     SEC. 3. DEFINITIONS.

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

     SEC. 4. RECLAMATION OF SPECTRUM.

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

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

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

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

     SEC. 5. USE OF PROCEEDS FROM AUCTION.

       (a) Establishment of Account.--There is hereby established 
     on the books of the Treasury an account for the proceeds of 
     the auction conducted under section 8(b). Except as provided 
     in subsections (b) and (c), all proceeds from that auction 
     shall be deposited in

[[Page S947]]

     the Treasury in accordance with chapter 33 of title 31, 
     United States Code, and credited to the account established 
     by this subsection.
       (b) Law Enforcement and Public Safety.--
       (1) Amount.--Out of the amounts received from the auction 
     of spectrum under section 8(b), the Institute shall retain 
     amounts equal to 10 percent of the sum of the amounts 
     credited to that account, but not less than $200,000,000 nor 
     more than $750,000,000, for use in funding State and local 
     law enforcement and public safety agencies' mission-related 
     radio communications capabilities.
       (2) Allocation among states.--Amounts retained under 
     paragraph (1) shall be distributed to each State in 
     proportion to its share of the population of the United 
     States according to the latest decennial census, subject to 
     such procedures and conditions as the Commission may 
     establish to ensure proper accounting for the use of 
     distributed amounts.
       (3) Use of amounts received.--The chief executive officer 
     of each State shall use amounts received under this section 
     exclusively for the purpose for which such amounts are 
     authorized under this Act. In administering any amounts 
     received under this section, that chief executive officer 
     shall give due regard to opportunities that--
       (A) commercially-provided services; and
       (B) the sharing of resources and facilities by law 
     enforcement and public safety agencies,

     afford for improved and more efficient law enforcement and 
     public safety radio communications.
       (c) Administrative Expenses.--
       (1) Institute.--Out of amounts received from the auction 
     under section 8(b) of this Act remaining after provision is 
     made for the distribution under subsection (b) of this 
     section, the Institute shall--
       (A) retain such amounts as may be necessary to fund its 
     administrative expenses; and
       (B) transfer to the Federal Communications Commission such 
     sums as may be necessary to compensate it for its costs 
     incurred in support of the Institute's operations.
       (2) Federal communications commission.--The salaries and 
     expenses account of the Commission shall retain as an 
     offsetting collection such sums as may be transferred to the 
     Commission under paragraph (1) to cover the costs of 
     developing and implementing the program required by this Act. 
     Such offsetting collections shall be available for obligation 
     subject to the terms and conditions of the receiving 
     appropriations account, and shall be deposited in such 
     accounts on a quarterly basis. Any funds appropriated to the 
     Commission for fiscal year during which the auction generates 
     proceeds shall be used by the Commission to implement this 
     Act. Such offsetting collections are authorized to remain 
     available until expended.

     SEC. 6. PERMANENT AUCTION AUTHORITY.

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

     SEC. 7. RELATIONSHIP TO OTHER LAW.

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

     SEC. 8. PUBLIC SAFETY TELECOMMUNICATIONS INSTITUTE.

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

     SEC. 9. BOARD OF DIRECTORS.

       (a) Appointment and Membership.--
       (1) The Institute shall be supervised by a Board of 
     Directors, consisting of--
       (A) 6 members to be appointed by the President, by and with 
     the advice and consent of the Senate; and
       (B) the Chairman of the Federal Communications Commission, 
     ex officio.
       (2) The President shall make the initial appointments of 
     members of the Board under this subsection 90 days after the 
     effective date of this Act. In the case of any other 
     appointment of a member, the President shall make the 
     appointment not later than 90 days after the previous term 
     expires or the vacancy occurs, as the case may be.
       (3) The initial members of the Board of Directors shall be 
     the incorporators of the Institute and shall determine the 
     State in which the Institute is to be incorporated.
       (b) Term of Office.--
       (1) Except as provided in paragraph (2), the term of each 
     appointed member of the Board shall be 5 years. Each such 
     member of the Board shall continue to serve until the 
     successor to such member has been appointed and qualified.
       (2) Three of the members first appointed by the President 
     shall serve for a term of 2 years. Any member appointed to 
     serve an unexpired term which has arisen by virtue of the 
     death, disability, retirement, or resignation of a member 
     shall be appointed only for such unexpired term, but shall be 
     eligible for reappointment.
       (3) The term of initial members shall commence from the 
     date of the first meeting of the Board, and the term of each 
     member other than an initial member shall commence from the 
     date of termination of the preceding term.
       (c) Reappointment.--No member shall be reappointed to more 
     than 2 consecutive terms immediately following such member's 
     initial term.
       (d) Compensation; Reimbursement for Expenses.--Members of 
     the Board shall serve without compensation, but shall be 
     reimbursed for actual and necessary expenses incurred in the 
     performance of their official duties.
       (e) Status of Members of Board as Officers and Employees of 
     United States.--The members of the Board shall not, by reason 
     of such membership, be considered officers or employees of 
     the United States.
       (f) Voting rights of Board Members; Quorum; Action of Board 
     on Concurrence of Majority.--Each member of the Board shall 
     be entitled to one vote. A simple majority of the membership 
     shall constitute a quorum for the conduct of business. The 
     Board shall act upon the concurrence of a simple majority of 
     the membership present and voting.
       (g) Chairman; Initial Selection and Term of Office; 
     Subsequent Annual Election.--The Board shall select from 
     among the appointed members of the Board a chairman, the 
     first of whom shall serve for a term of 3 years. Thereafter, 
     the Board shall annually elect a chairman from among its 
     appointed members.
       (h) Grounds for Removal of Members.--An appointed member of 
     the Board may be removed by a vote of 4 members for 
     malfeasance in office, persistent neglect of, or inability to 
     discharge duties, or for any offense involving moral 
     turpitude, but for no other cause.
       (i) Quarterly Meetings of Board; Special Meetings.--Regular 
     meetings of the Board shall be held quarterly. Special 
     meetings shall be held from time to time upon the call of the 
     chairman, acting at his own discretion or pursuant to the 
     petition of any 3 members.
       (j) Open Meetings.--All meetings of the Board, any 
     executive committee of the Board, and any council established 
     in connection with this Act, shall be open and subject to the 
     requirements and provisions of

[[Page S948]]

     section 552b of title 5, United States Code, relating to open 
     meetings.
       (k) Duties and Functions of Board.--In its direction and 
     supervision of the activities of the Institute, the Board 
     shall--
       (1) establish policies and develop such programs for the 
     Institute that will further the achievement of its purpose 
     and performance of its functions;
       (2) establish policy and funding priorities and issue 
     rules, regulations, guidelines, and instructions pursuant to 
     such priorities;
       (3) appoint and fix the duties of the Executive Director of 
     the Institute, who shall serve at the pleasure of the Board 
     and shall be a nonvoting ex officio member of the Board;
       (4) present to other Government departments, agencies, and 
     instrumentalities whose programs or activities relate to the 
     employment of telecommunications in connection with law 
     enforcement and public safety, the recommendations of the 
     Institute for the improvement of such programs or activities; 
     and
       (6) award grants and enter into cooperative agreements or 
     contracts pursuant to section 11.

     SEC. 10. OFFICERS AND EMPLOYEES.

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

     SEC. 11. GRANTS AND CONTRACTS.

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

     SEC. 12. LIMITATIONS ON GRANTS AND CONTRACTS.

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

     SEC. 13. RESTRICTIONS ON ACTIVITIES OF THE INSTITUTE.

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

     SEC. 14. PRESIDENTIAL COORDINATION.

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

     SEC. 15. RECORDS AND REPORTS.

       (a) Reports.--The Institute is authorized to require such 
     reports as it deems necessary from any recipient with respect 
     to activities carried out pursuant to this Act.

[[Page S949]]

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

     SEC. 16. AUDITS.

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