[Congressional Record Volume 148, Number 81 (Tuesday, June 18, 2002)]
[Senate]
[Pages S5673-S5674]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                       AUCTION REFORM ACT OF 2002

  Mr. DASCHLE. Mr. President, I ask unanimous consent the Senate 
proceed to the consideration of Calendar No. 380, H.R. 4560.
  The PRESIDING OFFICER. The clerk will report the bill by title.
  The senior assistant legislative clerk read as follows:

       A bill (H.R. 4560) to eliminate the deadlines for spectrum 
     auctions of spectrum previously allocated to television 
     broadcasting.

  The Senate proceeded to consider the bill.


                           Amendment No. 3893

  Mr. DASCHLE. I understand Senators Ensign, Kerry, and Stevens have a 
substitute amendment at the desk. I ask unanimous consent that the 
Senate consider and agree to the amendment, the motion to reconsider be 
laid upon the table, the bill as amended be read three times, passed, 
the motion to reconsider be laid on the table, and any statements 
relating thereto be printed in the Record without further intervening 
action or debate.
  The PRESIDING OFFICER. Without objection, it is so ordered.
  The amendment (No. 3893) was agreed to, as follows:

       Strike all after the enacting clause and insert the 
     following:

     SECTION 1. SHORT TITLE.

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

     SEC. 2. FINDINGS.

       Congress finds the following:

[[Page S5674]]

       (1) Circumstances in the telecommunications market have 
     changed dramatically since the auctioning of spectrum in the 
     700 megahertz band was originally mandated by Congress in 
     1997, raising serious questions as to whether the original 
     deadlines, or the subsequent revision of the deadlines, are 
     consistent with sound telecommunications policy and spectrum 
     management principles.
       (2) No comprehensive plan yet exists for allocating 
     additional spectrum for third-generation wireless and other 
     advanced communications services. The Federal Communications 
     Commission should have the flexibility to auction frequencies 
     in the 700 megahertz band for such purposes.
       (3) The study being conducted by the National 
     Telecommunications and Information Administration in 
     consultation with the Department of Defense to determine 
     whether the Department of Defense can share or relinquish 
     additional spectrum for third generation wireless and other 
     advanced communications services will not be completed until 
     after the June 19th auction date for the upper 700 megahertz 
     band, and long after the applications must be filed to 
     participate in the auction, thereby creating further 
     uncertainty as to whether the frequencies in the 700 
     megahertz band will be put to their highest and best use for 
     the benefit of consumers.
       (4) The Federal Communications Commission is also in the 
     process of determining how to resolve the interference 
     problems that exist in the 800 megahertz band, especially for 
     public safety. One option being considered for the 800 
     megahertz band would involve the 700 megahertz band. The 
     Commission should not hold the 700 megahertz auction before 
     the 800 megahertz interference issues are resolved or a 
     tenable plan has been conceived.
       (5) The 700 megahertz band is currently occupied by 
     television broadcasters, and will be so until the transfer to 
     digital television is completed. This situation creates a 
     tremendous amount of uncertainty concerning when the spectrum 
     will be available and reduces the value placed on the 
     spectrum by potential bidders. The encumbrance of the 700 
     megahertz band reduces both the amount of money that the 
     auction would be likely to produce and the probability that 
     the spectrum would be purchased by the entities that valued 
     the spectrum the most and would put the spectrum to its most 
     productive use.
       (6) The Commission's rules governing voluntary mechanisms 
     for vacating the 700 megahertz band by broadcast stations--
       (A) produced no certainty that the band would be available 
     for advanced mobile communications services, public safety 
     operations, or other wireless services any earlier than the 
     existing statutory framework provides; and
       (B) should advance the transition of digital television and 
     must not result in the unjust enrichment of any incumbent 
     licensee.

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

       (a) FCC To Determine Timing of Auctions.--Section 309(j) of 
     the Communications Act of 1934 (47 U.S.C. 309(j)) is amended 
     by adding at the end the following new paragraph:
       ``(15) Commission to determine timing of auctions.--
       ``(A) Commission authority.--Subject to the provisions of 
     this subsection (including paragraph (11)), but 
     notwithstanding any other provision of law, the Commission 
     shall determine the timing of and deadlines for the conduct 
     of competitive bidding under this subsection, including the 
     timing of and deadlines for qualifying for bidding; 
     conducting auctions; collecting, depositing, and reporting 
     revenues; and completing licensing processes and assigning 
     licenses.
       ``(B) Termination of portions of auctions 31 and 44.--
     Except as provided in subparagraph (C), the Commission shall 
     not commence or conduct auctions 31 and 44 on June 19, 2002, 
     as specified in the public notices of March 19, 2002, and 
     March 20, 2002 (DA 02-659 and DA 02-563).
       ``(C) Exception.--
       ``(i) Blocks excepted.--Subparagraph (B) shall not apply to 
     the auction of--

       ``(I) the C-block of licenses on the bands of frequencies 
     located at 710-716 megahertz, and 740-746 megahertz; or
       ``(II) the D-block of licenses on the bands of frequencies 
     located at 716-722 megahertz.

       ``(ii) Eligible bidders.--The entities that shall be 
     eligible to bid in the auction of the C-block and D-block 
     licenses described in clause (i) shall be those entities that 
     were qualified entities, and that submitted applications to 
     participate in auction 44, by May 8, 2002, as part of the 
     original auction 44 short form filing deadline.
       ``(iii) Auction deadlines for excepted blocks.--
     Notwithstanding subparagraph (B), the auction of the C-block 
     and D-block licenses described in clause (i) shall be 
     commenced no earlier than August 19, 2002, and no later than 
     September 19, 2002, and the proceeds of such auction shall be 
     deposited in accordance with paragraph (8) not later than 
     December 31, 2002.
       ``(iv) Report.--Within one year after the date of enactment 
     of this paragraph, the Commission shall submit a report to 
     Congress--

       ``(I) specifying when the Commission intends to reschedule 
     auctions 31 and 44 (other than the blocks excepted by clause 
     (i)); and
       ``(II) describing the progress made by the Commission in 
     the digital television transition and in the assignment and 
     allocation of additional spectrum for advanced mobile 
     communications services that warrants the scheduling of such 
     auctions.

       ``(D) Return of payments.--Within one month after the date 
     of enactment of this paragraph, the Commission shall return 
     to the bidders for licenses in the A-block, B-block, and E-
     block of auction 44 the full amount of all upfront payments 
     made by such bidders for such licenses.''.
       (b) Conforming Amendments.--
       (1) Communications act of 1934.--Section 309(j)(14)(C)(ii) 
     of the Communications Act of 1934 (47 U.S.C. 
     309(j)(14)(C)(ii)) is amended by striking the second 
     sentence.
       (2) Balanced budget act of 1997.--Section 3007 of the 
     Balanced Budget Act of 1997 (111 Stat. 269) is repealed.
       (3) Consolidated appropriations act.--Paragraphs (2) and 
     (3) of section 213(a) of H.R. 3425 of the 106th Congress, as 
     enacted into law by section 1000(a)(5) of an Act making 
     consolidated appropriations for the fiscal year ending 
     September 30, 2000, and for other purposes (Public Law 106-
     113; 113 Stat. 1501A-295), are repealed.

     SEC. 4. COMPLIANCE WITH AUCTION AUTHORITY.

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

     SEC. 5. PRESERVATION OF BROADCASTER OBLIGATIONS.

       Nothing in this Act shall be construed to relieve 
     television broadcast station licensees of the obligation to 
     complete the digital television service conversion as 
     required by section 309(j)(14) of the Communications Act of 
     1934 (47 U.S.C. 309(j)(14)).

     SEC. 6. INTERFERENCE PROTECTION.

       (a) Interference Waivers.--In granting a request by a 
     television broadcast station licensee assigned to any of 
     channels 52-69 to utilize any channel of channels 2-51 that 
     is assigned for digital broadcasting in order to continue 
     analog broadcasting during the transition to digital 
     broadcasting, the Federal Communications Commission may not, 
     either at the time of the grant or thereafter, waive or 
     otherwise reduce--
       (1) the spacing requirements provided for analog 
     broadcasting licensees within channels 2-51 as required by 
     section 73.610 of the Commission's rules (and the table 
     contained therein) (47 CFR 73.610), or
       (2) the interference standards provided for digital 
     broadcasting licensees within channels 2-51 as required by 
     sections 73.622 and 73.623 of such rules (47 CFR 73.622, 
     73.623),

     if such waiver or reduction will result in any degradation in 
     or loss of service, or an increased level of interference, to 
     any television household except as the Commission's rules 
     would otherwise expressly permit, exclusive of any waivers 
     previously granted.
       (b) Exception for Public Safety Channel Clearing.--The 
     restrictions in subsection (a) shall not apply to a station 
     licensee that is seeking authority (either by waiver or 
     otherwise) to vacate the frequencies that constitute 
     television channel 63, 64, 68, or 69 in order to make such 
     frequencies available for public safety purposes pursuant to 
     the provisions of section 337 of the Communications Act of 
     1934 (47 U.S.C. 337).

  The amendment was ordered to be engrossed, the bill (H.R. 4560), as 
amended, was read the third time and passed.

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