[Congressional Record (Bound Edition), Volume 149 (2003), Part 11]
[House]
[Pages 14350-14356]
[From the U.S. Government Publishing Office, www.gpo.gov]




                  COMMERCIAL SPECTRUM ENHANCEMENT ACT

  Mr. UPTON. Mr. Speaker, I move to suspend the rules and pass the bill 
(H.R. 1320) to amend the National Telecommunications and Information 
Administration Organization Act to facilitate the reallocation of 
spectrum from governmental to commercial users, as amended.
  The Clerk read as follows:

                               H.R. 1320

       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 ``Commercial Spectrum 
     Enhancement Act''.

     SEC. 2. RELOCATION OF ELIGIBLE FEDERAL ENTITIES FOR THE 
                   REALLOCATION OF SPECTRUM FOR COMMERCIAL 
                   PURPOSES.

       Section 113(g) of the National Telecommunications and 
     Information Administration Organization Act (47 U.S.C. 
     923(g)) is amended by striking paragraphs (1) through (3) and 
     inserting the following:--
       ``(1) Eligible federal entities.--Any Federal entity that 
     operates a Federal Government station assigned to a band of 
     frequencies specified in paragraph (2) and that incurs 
     relocation costs because of the reallocation of frequencies 
     from Federal use to non-Federal use shall receive payment for 
     such costs from the Spectrum Relocation Fund, in accordance 
     with section 118 of this Act. 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.
       ``(2) Eligible frequencies.--The bands of eligible 
     frequencies for purposes of this section are as follows:

[[Page 14351]]

       ``(A) the 216-220 megahertz band, the 1432-1435 megahertz 
     band, the 1710-1755 megahertz band, and the 2385-2390 
     megahertz band of frequencies; and
       ``(B) any other band of frequencies reallocated from 
     Federal use to non-Federal 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)), except for 
     bands of frequencies previously identified by the National 
     Telecommunications and Information Administration in the 
     Spectrum Reallocation Final Report, NTIA Special Publication 
     95-32 (1995).
       ``(3) Definition of relocation costs.--For purposes of this 
     subsection, the term `relocation costs' means the costs 
     incurred by a Federal entity to achieve comparable capability 
     of systems, regardless of whether that capability is achieved 
     by relocating to a new frequency assignment or by utilizing 
     an alternative technology. Such costs include--
       ``(A) the costs of any modification or replacement of 
     equipment, software, facilities, operating manuals, training 
     costs, or regulations that are attributable to relocation;
       ``(B) the costs of all engineering, equipment, software, 
     site acquisition and construction costs, as well as any 
     legitimate and prudent transaction expense, including outside 
     consultants, and reasonable additional costs incurred by the 
     Federal entity that are attributable to relocation, including 
     increased recurring costs associated with the replacement 
     facilities;
       ``(C) the costs of engineering studies, economic analyses, 
     or other expenses reasonably incurred in calculating the 
     estimated relocation costs that are provided to the 
     Commission pursuant to paragraph (4) of this subsection;
       ``(D) the one-time costs of any modification of equipment 
     reasonably necessary to accommodate commercial use of such 
     frequencies prior to the termination of the Federal entity's 
     primary allocation or protected status, when the eligible 
     frequencies as defined in paragraph (2) of this subsection 
     are made available for private sector uses by competitive 
     bidding and a Federal entity retains primary allocation or 
     protected status in those frequencies for a period of time 
     after the completion of the competitive bidding process; and
       ``(E) the costs associated with the accelerated replacement 
     of systems and equipment if such acceleration is necessary to 
     ensure the timely relocation of systems to a new frequency 
     assignment.
       ``(4) Notice to commission of estimated relocation costs.--
       ``(A) The Commission shall notify the NTIA at least 18 
     months prior to the commencement of any auction of eligible 
     frequencies defined in paragraph (2). At least 6 months prior 
     to the commencement of any such auction, the NTIA, on behalf 
     of the Federal entities and after review by the Office of 
     Management and Budget, shall notify the Commission of 
     estimated relocation costs and timelines for such relocation.
       ``(B) Upon timely request of a Federal entity, the NTIA 
     shall provide such entity with information regarding an 
     alternative frequency assignment or assignments to which 
     their radiocommunications operations could be relocated for 
     purposes of calculating the estimated relocation costs and 
     timelines to be submitted to the Commission pursuant to 
     subparagraph (A).
       ``(C) To the extent practicable and consistent with 
     national security considerations, the NTIA shall provide the 
     information required by subparagraphs (A) and (B) by the 
     geographic location of the Federal entities' facilities or 
     systems and the frequency bands used by such facilities or 
     systems.
       ``(5) Notice to congressional committees and gao.--The NTIA 
     shall, at the time of providing an initial estimate of 
     relocation costs to the Commission under paragraph (4)(A), 
     submit to the Committees on Appropriations and Energy and 
     Commerce of the House of Representatives, the Committees on 
     Appropriations and Commerce, Science, and Transportation of 
     the Senate, and the Comptroller General a copy of such 
     estimate and the timelines for relocation.
       ``(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 defined in paragraph (2) to frequencies or 
     facilities of comparable capability. Upon a finding by the 
     NTIA that a Federal entity has achieved comparable capability 
     of systems by relocating to a new frequency assignment or by 
     utilizing an alternative technology, the NTIA shall terminate 
     the entity's authorization and notify the Commission that the 
     entity's relocation has been completed. 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 submitted by the Director of the 
     Office of Management and Budget under section 
     118(d)(2)(B).''.

     SEC. 3. MINIMUM AUCTION RECEIPTS AND DISPOSITION OF PROCEEDS.

       (a) Auction Design.--Section 309(j)(3) of the 
     Communications Act of 1934 (47 U.S.C. 309(j)(3)) is amended--
       (1) by striking ``and'' at the end of subparagraph (D);
       (2) by striking the period at the end of subparagraph (E) 
     and inserting ``; and''; and
       (3) by adding at the end the following new subparagraph:
       ``(F) for any auction of eligible frequencies described in 
     section 113(g)(2) of the National Telecommunications and 
     Information Administration Organization Act (47 U.S.C. 
     923(g)(2)), the recovery of 110 percent of estimated 
     relocation costs as provided to the Commission pursuant to 
     section 113(g)(4) of such Act.''.
       (b) Special Auction Provisions for Eligible Frequencies.--
     Section 309(j) of such Act is further amended by adding at 
     the end the following new paragraph:
       ``(15) Special auction provisions for eligible 
     frequencies.--
       ``(A) Special regulations.--The Commission shall revise the 
     regulations prescribed under paragraph (4)(F) of this 
     subsection to prescribe methods by which the total cash 
     proceeds from any auction of eligible frequencies described 
     in section 113(g)(2) of the National Telecommunications and 
     Information Administration Organization Act (47 U.S.C. 
     923(g)(2)) shall at least equal 110 percent of the total 
     estimated relocation costs provided to the Commission 
     pursuant to section 113(g)(4) of such Act.
       ``(B) Conclusion of auctions contingent on minimum 
     proceeds.--The Commission shall not conclude any auction of 
     eligible frequencies described in section 113(g)(2) of such 
     Act if the total cash proceeds attributable to such spectrum 
     are less than 110 percent of the total estimated relocation 
     costs provided to the Commission pursuant to section 
     113(g)(4) of such Act. If the Commission is unable to 
     conclude an auction for the foregoing reason, the Commission 
     shall cancel the auction, return within 45 days after the 
     auction cancellation date any deposits from participating 
     bidders held in escrow, and absolve such bidders from any 
     obligation to the United States to bid in any subsequent 
     reauction of such spectrum.
       ``(C) Authority to issue prior to deauthorization.--In any 
     auction conducted under the regulations required by 
     subparagraph (A), the Commission may grant a license assigned 
     for the use of eligible frequencies prior to the termination 
     of an eligible Federal entity's authorization. However, the 
     Commission shall condition such license by requiring that the 
     licensee cannot cause harmful interference to such Federal 
     entity until such entity's authorization has been terminated 
     by the National Telecommunications and Information 
     Administration.''.
       (c) Deposit of Proceeds.--Paragraph (8) of section 309(j) 
     of the Communications Act of 1934 (47 U.S.C. 309(j)) is 
     amended--
       (1) in subparagraph (A), by inserting ``or subparagraph 
     (D)'' after ``subparagraph (B)''; and
       (2) by adding at the end the following new subparagraph:
       ``(D) Disposition of cash proceeds.--Cash proceeds 
     attributable to the auction of any eligible frequencies 
     described in section 113(g)(2) of the National 
     Telecommunications and Information Administration 
     Organization Act (47 U.S.C. 923(g)(2)) shall be deposited in 
     the Spectrum Relocation Fund established under section 118 of 
     such Act, and shall be available in accordance with that 
     section.''.

     SEC. 4. ESTABLISHMENT OF FUND AND PROCEDURES.

       Part B of the National Telecommunications and Information 
     Administration Organization Act is amended by adding after 
     section 117 (47 U.S.C. 927) the following new section:

     ``SEC. 118. SPECTRUM RELOCATION FUND.

       ``(a) Establishment of Spectrum Relocation Fund.--There is 
     established on the books of the Treasury a separate fund to 
     be known as the `Spectrum Relocation Fund' (in this section 
     referred to as the `Fund'), which shall be administered by 
     the Office of Management and Budget (in this section referred 
     to as `OMB'), in consultation with the NTIA.
       ``(b) Crediting of Receipts.--The Fund shall be credited 
     with the amounts specified in section 309(j)(8)(D) of the 
     Communications Act of 1934 (47 U.S.C. 309(j)(8)(D)).
       ``(c) Used To Pay Relocation Costs.--The amounts in the 
     Fund from auctions of eligible frequencies are authorized to 
     be used to pay relocation costs, as defined in section 
     113(g)(3) of this Act, of an eligible Federal entity 
     incurring such costs with respect to relocation from those 
     frequencies.
       ``(d) Fund Availability.--
       ``(1) Appropriation.--There are hereby appropriated from 
     the Fund such sums as are required to pay the relocation 
     costs specified in subsection (c).
       ``(2) Transfer conditions.--None of the funds provided 
     under this subsection may be transferred to any eligible 
     Federal entity--
       ``(A) unless the Director of OMB has determined, in 
     consultation with the NTIA, the appropriateness of such costs 
     and the timeline for relocation; and
       ``(B) until 30 days after the Director of the OMB has 
     submitted to the Committees on Appropriations and Energy and 
     Commerce of the House of Representatives, the Committees on 
     Appropriations and Commerce, Science, and Transportation of 
     the Senate, and the Comptroller General a detailed plan 
     describing how the sums transferred from the Fund will be 
     used to pay relocation costs in accordance with such 
     subsection and the timeline for such relocation.
       ``(3) Reversion of unused funds.--Any auction proceeds in 
     the Fund that are remaining after the payment of the 
     relocation costs that are payable from the Fund shall revert 
     to and be deposited in the general fund of the Treasury not 
     later than 8 years after the date of the deposit of such 
     proceeds to the Fund.
       ``(e) Transfer to Eligible Federal Entities.--
       ``(1) Transfer.--
       ``(A) Amounts made available pursuant to subsection (d) 
     shall be transferred to eligible Federal entities, as defined 
     in section 113(g)(1) of this Act.

[[Page 14352]]

       ``(B) An eligible Federal entity may receive more than one 
     such transfer, but if the sum of the subsequent transfer or 
     transfers exceeds 10 percent of the original transfer--
       ``(i) such subsequent transfers are subject to prior 
     approval by the Director of OMB as required by subsection 
     (d)(2)(A);
       ``(ii) the notice to the committees containing the plan 
     required by subsection (d)(2)(B) shall be not less than 45 
     days prior to the date of the transfer that causes such 
     excess above 10 percent;
       ``(iii) such notice shall include, in addition to such 
     plan, an explanation of need for such subsequent transfer or 
     transfers; and
       ``(iv) the Comptroller General shall, within 30 days after 
     receiving such plan, review such plan and submit to such 
     committees an assessment of the explanation for the 
     subsequent transfer or transfers.
       ``(C) Such transferred amounts shall be credited to the 
     appropriations account of the eligible Federal entity which 
     has incurred, or will incur, such costs, and shall, subject 
     to paragraph (2), remain available until expended.
       ``(2) Retransfer to fund.--An eligible Federal entity that 
     has received such amounts shall report its expenditures to 
     OMB and shall transfer any amounts in excess of actual 
     relocation costs back to the Fund immediately after the NTIA 
     has notified the Commission that the entity's relocation is 
     complete, or has determined that such entity has unreasonably 
     failed to complete such relocation in accordance with the 
     timeline required by subsection (d)(2)(A).''.

     SEC. 5. TELECOMMUNICATIONS DEVELOPMENT FUND.

       Section 714(f) of the Communications Act of 1934 (47 U.S.C. 
     614(f)) is amended to read as follows:
       ``(f) Lending and Credit Operations.--Loans or other 
     extensions of credit from the Fund shall be made available to 
     an eligible small business on the basis of--
       ``(1) the analysis of the business plan of the eligible 
     small business;
       ``(2) the reasonable availability of collateral to secure 
     the loan or credit extension;
       ``(3) the extent to which the loan or credit extension 
     promotes the purposes of this section; and
       ``(4) other lending policies as defined by the Board.''.

     SEC. 6. CONSTRUCTION.

        Nothing in this Act is intended to modify section 1062(b) 
     of the National Defense Authorization Act for Fiscal Year 
     2000 (Public Law 106-65).

     SEC. 7. ANNUAL REPORT.

       The National Telecommunications and Information 
     Administration shall submit an annual report to the 
     Committees on Appropriations and Energy and Commerce of the 
     House of Representatives, the Committees on Appropriations 
     and Commerce, Science, and Transportation of the Senate, and 
     the Comptroller General on--
       (1) the progress made in adhering to the timelines 
     applicable to relocation from eligible frequencies required 
     under section 118(d)(2)(A) of the National Telecommunications 
     and Information Administration Organization Act, separately 
     stated on a communication system-by-system basis and on an 
     auction-by-auction basis; and
       (2) with respect to each relocated communication system and 
     auction, a statement of the estimate of relocation costs 
     required under section 113(g)(4) of such Act, the actual 
     relocations costs incurred, and the amount of such costs paid 
     from the Spectrum Relocation Fund.

     SEC. 8. PRESERVATION OF AUTHORITY; NTIA REPORT REQUIRED.

       (a) Spectrum Management Authority Retained.--Except as 
     provided with respect to the bands of frequencies identified 
     in section 113(g)(2)(A) of the National Telecommunications 
     and Information Administration Organization Act (47 U.S.C. 
     923(g)(2)(A)) as amended by this Act, nothing in this Act or 
     the amendments made by this Act shall be construed as 
     limiting the Federal Communications Commission's authority to 
     allocate bands of frequencies that are reallocated from 
     Federal use to non-Federal use for unlicensed, public safety, 
     shared, or non-commercial use.
       (b) NTIA Report Required.--Within 1 year after the date of 
     enactment of this Act, the Administrator of the National 
     Telecommunications and Information Administration shall 
     submit to the Energy and Commerce Committee of the House of 
     Representatives and the Commerce, Science, and Transportation 
     Committee of the Senate a report on various policy options to 
     compensate Federal entities for relocation costs when such 
     entities' frequencies are allocated by the Commission for 
     unlicensed, public safety, shared, or non-commercial use.

  The SPEAKER pro tempore. Pursuant to the rule, the gentleman from 
Michigan (Mr. Upton) and the gentleman from Massachusetts (Mr. Markey) 
each will control 20 minutes.
  The Chair recognizes the gentleman from Michigan (Mr. Upton).


                             General Leave

  Mr. UPTON. Mr. Speaker, I ask unanimous consent that all Members may 
have 5 legislative days within which to revise and extend their remarks 
on this legislation and to insert extraneous material on the bill.
  The SPEAKER pro tempore. Is there objection to the request of the 
gentleman from Michigan?
  There was no objection.
  Mr. UPTON. Mr. Speaker, I yield myself such time as I may consume.
  Mr. Speaker, I rise in strong support of H.R. 1320, bipartisan 
legislation called the Commercial Spectrum Enhancement Act, otherwise 
known as the spectrum relocation trust fund bill. I introduced this 
legislation with my good friend, the gentleman from New York (Mr. 
Towns), along with the gentleman from Louisiana (Mr. Tauzin), the 
gentleman from Virginia (Mr. Boucher), the gentleman from Nebraska (Mr. 
Terry), the gentleman from Texas (Mr. Green), the gentleman from 
Florida (Mr. Stearns), the gentleman from New Hampshire (Mr. Bass), the 
gentleman from Mississippi (Mr. Pickering), the gentleman from Kentucky 
(Mr. Whitfield), and the gentleman from Illinois (Mr. Kirk).
  Lately the subcommittee has been focused on the ailing 
telecommunications sector. Clearly the commercial wireless industry has 
not been spared from the wreckage, and we have been searching for ways 
to restore some hope. In my view what we need to do is get new, 
valuable spectrum into the hands of the commercial wireless carriers so 
that they can bring new, advanced wireless services to the consumer. 
That would be good for the wireless carriers, good for the equipment 
manufacturers, good for the consumer, and certainly great for the 
economy.
  In the current context, the government already has identified the 
1710 to 1755 megahertz band for relocation from the government to the 
private sector. This spectrum, mostly encumbered by DOD, is considered 
valuable ``beachfront property'' due to its suitability for commercial, 
mobile advanced wireless services like 3G. However, the road to 
relocating government entities to comparable spectrum is unpaved and 
filled with potholes. This bumpy road creates massive uncertainty in 
the process and depresses interest in participating in the auction in 
the first place.
  H.R. 1320 would pave that road, establishing a spectrum relocation 
fund and procedures to ensure a timely, certain and privately yet fully 
funded relocation of Federal incumbents to comparable spectrum. H.R. 
1320 requires the FCC to notify the National Telecommunications and 
Information Administration, NTIA, 18 months before conducting an 
auction of relocated spectrum. The purpose of that notification is so 
that the NTIA, after review by the Office of Management and Budget, can 
provide the Commission with an estimate of relocation costs for a 
particular band and a time line for relocation. That information is 
critical because under the legislation, an FCC auction of relocated 
spectrum is only valid if the auction yields proceeds of at least 110 
percent of the estimated relocation costs.
  The proceeds from auctions of eligible reallocated bands are 
deposited into a spectrum relocation fund which is an OMB-administered 
separate fund at the Department of Treasury. If any agency has any 
transferred money remaining when relocation is complete, the agency is 
required to transfer the money back to the spectrum relocation fund 
right away. Unexpected auction proceeds are then transferred to the 
Treasury no later than 8 years after the proceeds were initially 
deposited into the spectrum relocation fund. All the while, H.R. 1320 
provides tight fiscal controls and congressional oversight, as it 
should, of the use of the spectrum relocation fund.
  Finally, the bill exempts the telecommunications development fund, 
TDF, from the Federal Credit Reform Act, the practical application of 
which has prevented TDF from making loans without first obtaining 
budget authority on an annual basis. The provision in H.R. 1320 will 
significantly enhance the TDF's ability to make loans to worthy 
development projects focused on rural and underserved areas. I 
appreciate my good friend, the gentleman from New York (Mr. Towns), for 
his attention to this issue. I am pleased that the provision in fact is 
incorporated into the bill.
  As such, the bipartisan bill represents a win-win-win. That is good 
news for the private sector which

[[Page 14353]]

craves certainty in the process and the consumer who craves the 
benefits which new services enabled by additional spectrum will afford 
them. That is good news for government agencies who know that they will 
be made whole when they relocate to comparable spectrum and the 
taxpayer who will not have to pay a dime to relocate government 
agencies and will know that there is tight fiscal oversight in that 
regard. As I indicated, all of this is great news for the economy.
  I should also add that we worked very closely with the administration 
to get where we are today and that the bill enjoys the administration's 
support, including the Department of Defense, the OMB and NTIA. I want 
to especially thank Assistant Secretary of Commerce Nancy Victory and 
former Deputy Assistant Secretary of Defense Stephen Price, the 
gentleman from Louisiana (Mr. Tauzin), my good friend from the great 
State of Michigan, ranking member (Mr. Dingell), and certainly the 
gentleman from Massachusetts (Mr. Markey), in addition to the majority 
and minority staff for their efforts to get us where we are today. I 
urge an ``aye'' vote on this legislation.
  Mr. Speaker, I reserve the balance of my time.
  Mr. MARKEY. Mr. Speaker, I yield myself such time as I may consume.
  I would like to begin by first thanking my good and great friend, the 
gentleman from Michigan (Mr. Upton), for that wonderful opening 
statement and to the chairman of the full committee, the gentleman from 
Louisiana (Mr. Tauzin), to the great Member of Congress from the State 
of Michigan (Mr. Dingell), the dean of the entire House of 
Representatives, for his wonderful work on this legislation, and to all 
the Members who participated in the formulation of this excellent piece 
of legislation. I want to thank all of them for their help in putting 
this bill together today.
  The goal of this legislation is to establish a policy mechanism that 
may assist the Federal Government in reallocating airwave frequencies 
from the Federal Government to the Federal Communications Commission. 
Ensuring the best use of such frequencies for the public is a vital 
function of both the National Telecommunications Information Agency and 
the Federal Communications Commission. The bill we bring to the House 
floor this morning proposes the creation of a fund derived from FCC 
auction revenue to pay the military and other Federal users for moving 
out of particular bands of frequencies. Establishing such a mechanism 
when and if the FCC chooses to license certain government frequencies 
through auctions may bring greater certainty to the process and may 
also speed along the availability of certain frequencies. In addition, 
one issue that we will need to continue to focus on is the necessity of 
ensuring that the money raised is spent wisely and with adequate 
oversight. We have returned to an era of Federal budget deficits for as 
far as the eye can see and, as a result, this is a very important 
issue.

                              {time}  1030

  The bill does contain improved oversight and reporting provisions to 
guard against cost overruns by Federal entities that seek to use money 
in the Spectrum Relocation Fund, but this process will likely need 
ongoing review as the bill is implemented.
  I want to commend the gentleman from Michigan (Mr. Dingell), the 
gentleman from Michigan (Mr. Upton), and the gentleman from Louisiana 
(Chairman Tauzin) for their work in this area.
  Second, it is important to note that today's bill puts in place a new 
policy for Federal spectrum reallocations. It does so through 
establishing a Federal fund derived from auction proceeds to compensate 
the Federal users for the costs associated with moving out of their 
current frequencies.
  One issue that arose during the committee consideration of this bill 
is that this new policy is only operative in circumstances when an 
auction actually occurs. I think it is important to recognize that in 
the future certain frequencies utilized by Federal entities may be 
reallocated by the Federal Communications Commission, yet not licensed 
through auctions. They may be for public safety, noncommercial uses, 
shared frequencies, or unlicensed use such as the so-called WiFi 
technologies. In other words, in order to ensure the highest and best 
use of such frequencies for the public, the FCC may seek to allocate or 
assign such frequencies without auctions.
  In recent years it has become evident that one of the 
telecommunications sector's economic bright spots has been unlicensed 
applications such at WiFi. Ensuring that we have a policy in place to 
permit the Federal Communications Commission to continue to promote 
unlicensed spectrum is important. But in addition, retaining the 
historic flexibility for the Federal Communications Commission to 
allocate frequencies for both commercial and noncommercial use is 
something we should safeguard, even as we put in place a new policy to 
compensate Federal users for the costs of moving out.
  We do not want the absence of an articulated policy for unlicensed 
use, shared use, public safety use, or noncommercial use to be 
construed as compelling the FCC to use auctions whenever it intends to 
move a Federal user to another frequency band.
  I am pleased that the legislation contains a provision that I 
authored in this policy area. First, the provision safeguards the FCC's 
historic authority to allocate frequencies as the public interest is 
deemed to be best served. Second, it also directs the National 
Telecommunications Information Agency to develop reports on various 
policy options to compensate Federal entities for relocation costs when 
such entities' frequencies are allocated by the commission for 
unlicensed public safety, shared or noncommercial use.
  Finally, I believe that when the Federal Communications Commission 
does decide to proceed with auctions as a means of granting licenses 
for use of the public's airwaves the public deserves to reap the 
benefits of the sale of licenses to its airwaves. These benefits should 
not only manifest themselves in the offering of new commercial services 
or the temporary infusion of cash into the Federal Treasury as under 
current law.
  I have proposed in H.R. 1396 that the public should also enjoy the 
dividends that can be reaped by reinvesting auction money into a 
Digital Dividends trust fund. This fund would generate interest, and 
that interest could be used in the form of grants to promote 
educational technology projects, public safety telecommunications 
initiatives, software R&D, teacher training, and digitizing for online 
access the important cultural assets held in our Nation's libraries and 
museums, among other initiatives.
  Investing surplus auction revenues in this manner is a wise 
investment. It supports the educational infrastructure of our country. 
It will help to better prepare our citizens for an information-rich, 
knowledge-based economy. An educated citizenry is indispensable to our 
democracy. Educating citizens so that they possess the necessary 
digital skill set that they will need in order to compete in a modern 
global economy will make us a more secure, more productive country for 
the generations to come.
  Again, I want to thank the gentleman from Louisiana (Chairman 
Tauzin), the gentleman from Michigan (Chairman Upton), the gentleman 
from Michigan (Mr. Dingell), and all of the Members who have helped to 
construct this very progressive legislation.
  Mr. Speaker, I reserve the balance of my time.
  Mr. UPTON. Mr. Speaker, I include for the Record three statements in 
support of this legislation: the first by the administration in their 
statement of administration policy; second, a strong letter of support 
by the Chamber of Commerce; and, third, a letter of strong support by 
the CTIA.

                   Statement of Administration Policy

       (This statement has been coordinated by OMB with the 
     concerned agencies.)
       The Administration strongly supports House passage of H.R. 
     1320, which would create a spectrum relocation fund. The 
     Administration believes that the fund will serve as an 
     important spectrum management tool to streamline the process 
     for reimbursing government users, facilitate their relocation 
     to

[[Page 14354]]

     comparable spectrum, and provide greater certainty to auction 
     bidders and incumbents. This legislation will also expedite 
     the opening of spectrum to commercial use for new services 
     and technologies for consumers.
       The Administration is pleased that H.R. 1320 closely tracks 
     the Administration's proposal to create a spectrum relocation 
     fund. The Administration urges quick action by the Congress 
     to establish a spectrum relocation fund to make the spectrum 
     management process more effective and efficient.


                         pay-as-you-go scoring

       H.R. 1320 would affect direct spending. The Budget 
     Enforcement Act's pay-as-you-go requirements and 
     discretionary spending caps expired on September 30, 2002. 
     The Administration supports the extension of these budget 
     enforcement mechanisms in a manner that ensures fiscal 
     discipline and is consistent with the President's budget.
                                  ____

                                               Chamber of Commerce


                              of the United States of America,

                                    Washington, DC, June 10, 2003.
     To All Members of the U.S. House of Representatives:
       The U.S. Chamber of Commerce, the world's largest business 
     federation, representing more than three million businesses 
     and organizations of every size, sector and region, urges you 
     to support H.R. 1320, the Commercial Spectrum Enhancement 
     Act. It is expected that the U.S. House of Representatives 
     will consider H.R. 1320 on June 11 or 12, 2003, under 
     suspension of the rules. Furthermore, we urge you to oppose 
     any amendments that would weaken this legislation or divert 
     substantial funds away from the primary purpose of freeing up 
     essential spectrum for commercial usage.
       This legislation would clear a major hurdle in the ongoing 
     effort to make available more spectrum for advanced wireless 
     services and applications. The act would establish a 
     mechanism for reimbursing incumbent federal spectrum users 
     for their relocation costs when their spectrum is reallocated 
     for commercial use. The trust fund would ensure the safe and 
     efficient transition of governmental operations from one 
     spectrum location to another, while creating new 
     opportunities for innovation in the wireless sector.
       The creation of a spectrum relocation trust fund represents 
     an important step in the difficult process of reforming our 
     nation's spectrum allocation and management policies. We must 
     continue to support these efforts in order to create the 
     necessary incentives for investment and advancement in the 
     technology industry, which will continue to be a key driver 
     of the American economy.
           Sincerely,
                                                  R. Bruce Josten,
     Executive Vice President.
                                  ____

                                       Cellular Telecommunications


                                     and Internet Association,

                                    Washington, DC, June 11, 2003.
     Hon. Billy Tauzin,
     Chairman, House Energy and Commerce Committee, RHOB, House of 
         Representatives, Washington, DC.

     Hon. John D. Dingell,
     Ranking Member, House Energy and Commerce Committee, RHOB, 
         House of Representatives, Washington, DC.
       Dear Mr. Chairman and Ranking Member: The Cellular 
     Telecommunications & Internet Association (herein, CTIA) 
     offers its unqualified support for the Commercial Spectrum 
     Enhancement Act (H.R 1320). We salute your hard work on this 
     legislation and urge its passage by the House of 
     Representatives. CTIA represents all categories of commercial 
     wireless telecommunications carriers, including cellular and 
     personal communications services, manufacturers and wireless 
     Internet providers.
       CTIA and the wireless industry appreciates the efforts of 
     the many members who are co-sponsors of H.R. 1320, in 
     particular Telecommunications Subcommittee Chairman Upton and 
     Congressman Towns, the lead sponsors.
       Passage of H.R. 1320 would significantly improve spectrum 
     management for both government spectrum users and for the 
     commercial wireless industry. The current process is a 
     ``black hole'' for both government agencies and the private 
     sector--filled with uncertainty, punctuated by unknown costs, 
     and bereft of predictability. The current process works for 
     no one.
       President Bush identified that fact in both the Fiscal Year 
     2003 and 2004 Budgets and called for the legislative changes 
     that are embodied in H.R. 1320. The relocation fund 
     legislation balances three key policy objectives: First, H.R. 
     1320 fully funds government relocation, providing certainty 
     essential to the Defense Department and all other government 
     incumbents. Second, H.R. 1320 will result in workable 
     timelines for both wireless industry and government 
     incumbents. Third, H.R. 1320 provides certainty and 
     accountability in developing--and adhering to--relocation 
     cost estimates and relocation timetables.
       During his March 25 testimony, Deputy Assistant Secretary 
     of Defense for Spectrum, Space, Sensors and C3 Steven Price 
     called for a ``trustworthy Trust Fund.'' We concur, H.R. 1320 
     provides exactly this solution.
       This bi-partisan legislation is a ``win-win-win'' solution, 
     benefiting our national security, our nation's economy and 
     American consumers. CTIA looks forward to continuing to work 
     with you and all members of the Committee to assure that this 
     legislation is soon law.
           Sincerely,
                                                  Steven K. Berry,
                        Senior Vice President, Government Affairs.

  Mr. Speaker, I yield such time as he may consume to the gentleman 
from Louisiana (Mr. Tauzin), the chairman of the powerful Committee on 
Energy and Commerce.
  Mr. TAUZIN. Mr. Speaker, I thank the distinguished chairman of the 
Subcommittee on Telecommunications and the Internet, the gentleman from 
Michigan (Mr. Upton); and I want to congratulate him on his hard work 
and the work product that we debate here on the House floor today.
  I particularly also want to congratulate and thank my friend, the 
gentleman from Massachusetts (Mr. Markey), the ranking member of the 
subcommittee, and my dear friend, the gentleman from Michigan (Mr. 
Dingell), the dean of our House and the ranking Democrat on the full 
committee, for the extraordinary cooperation that has been shown on 
this and so many pieces of legislation that our Committee on Energy and 
Commerce brings to the floor in the course of a year.
  This is one of those rare occasions where the administration, the 
Democrats and Republicans are all on the same page. We all agree this 
is of vital importance to the national economy, to the advancement of 
important wireless technologies for the good of our consumers in 
America and for the good of the lead that our Nation has played in 
world telecommunications technologies and commerce.
  This is one area where we can immediately begin to assist the 
Nation's economy in recovering, where we can immediately begin to do 
something to advance the cause of third-generation wireless 
technologies, the video and data links that are going to provide new 
services, equipment and products, built in America, made by American 
hands and used by Americans to advance the progress of their lives and 
their social contact with one another.
  This is a good day for America, because we have come together and 
realized that all the handicaps, all the internecine battles that may 
have been fought between agencies and those in the private sector who 
wanted spectrum to begin to develop these new technologies, all of 
these fights about who is going to pay the relocation costs to get the 
spectrum made available to have these things happen in our country are 
now being resolved by this relocation trust fund, a concept that says 
the trust fund is going to be there to make sure the relocation costs 
are taken care of so the FCC can move these new and exciting 
technologies to the forefront so Americans can enjoy them and our 
economy can grow again.
  This is a good day, but I want to point out to Members how without 
this kind of legislation things go wrong. We passed a bill on this 
House floor, again with the extraordinary bipartisan support of our 
friends on the Democratic side of our committee in this House and with 
the President's support, called E911. E911 is a concept that says when 
a person makes an emergency 911 call, it would be good to know where 
they are calling from; and when they are using a mobile telephone it 
would be certainly extraordinarily helpful if the person who received 
the 911 call could identify the location of the caller, because often 
the call is made in times of distress, an accident on the highway, a 
mugging in a park, a call of distress made by a citizen who is lost or 
in trouble on the highway and needs assistance, someone who has been 
seriously injured and cannot get help, cannot leave the automobile.
  One of my dearest friends a few years ago was in an automobile 
accident in the middle of the night. His car got flipped off the road, 
and he landed in one of those wonderful Louisiana marshes on the side 
of the road and no one could see him on the highway. He spent the night 
there, crushed, bleeding, broken, until a garbage truck driver spotted 
him from the highway the next morning.
  He nearly died. He went through incredible, horrible operations that

[[Page 14355]]

might have been avoided if only E911 were in place, where he could have 
picked up his mobile phone in that car, called 911, and immediately 
somebody could have known where he was and an ambulance could have come 
to his rescue.
  That is what E911 is all about. E911 is literally taking the 
``search'' out of ``search and rescue'' and making our mobile systems 
work much more efficiently so we can, in that first incredible hour 
where we can save lives and save limbs on the highway, we get to the 
person who has been injured, who made the call, and we rescue them. In 
that important 20 minutes when someone's child is being abducted, or a 
house is being broken into and somebody sees it on the highway and 
calls from a mobile unit, we can immediately identify that location.
  When those kind of things are happening in our society, when we pass 
a bill to facilitate this kind of technology, and we find out that the 
funds that are derived from the telecommunications companies to pay for 
the deployment of this service are being diverted by State and local 
governments to other purposes, even when 911 is not deployed in our 
communities, we should get upset.
  So today I take this opportunity to congratulate the House on moving 
forward on this Spectrum Relocation Fund and emphasizing how important 
it is to get the ball rolling on these new technologies and also call 
upon our colleagues at the State and local level to stop raiding those 
E911 funds. They are set up, like this relocation fund, to get that 
technology deployed.
  In the E911 case, it is not just to get a technology that is going to 
enrich our entertainment values or satisfy our need for information 
exchanges and mobile services. In E911 it is going to mean somebody's 
life. It may mean someone you love survives. It may mean my friend 
would not have had to go through all of those operations and not have 
had to spend the night broken and wounded in the swamps of Louisiana 
waiting for rescue. That is how important it is.
  So I hope, and I know my friends on the other side agree with me on 
this, we need to urge our friends at the State and local governments to 
take a good example from what we are doing on this relocation fund and 
make sure the funds that have been allocated to deploy E911 are used to 
deploy E911, not to cover deficit problems at a State or local 
government or divert it to other purposes.
  E911 funds ought to be used to deploy E911. Americans ought to demand 
it. Any State and local government that is diverting those funds ought 
to be put on notice today that you are taking a chance on somebody's 
life when you do not deploy those services.
  Here today, this House, this Congress, this government says that if 
we have government spectrum that we can make available to important 
uses like this, we are going to set up a relocation fund to make sure 
nobody touches it.
  Mr. Speaker, I want to thank the gentleman from Iowa (Chairman 
Nussle) of the Committee on the Budget, who helped make this suspension 
day possible for us by helping approve this bill. I want to thank the 
chairman of the Committee on Appropriations, the gentleman from Florida 
(Mr. Young), because the appropriators and budget chairmen have 
surrendered the right to control this money. This money is going to be 
in this fund to do what it was intended to do. They did the right thing 
when they approved this legislation.
  I want to again thank the Defense Department and the head of our 
Committee on Armed Services, the gentleman from California (Mr. 
Hunter), for working with us, because in so many cases the spectrum we 
are talking about is now under the control of the Defense Department. 
That is the spectrum that might make the new generation of wireless 
services available for Americans.
  I want to thank all of them for working with us on this legislation. 
This is the best example of Democrats and Republicans, of government 
agencies, of the White House, of everybody agreeing that we can do 
something good for the American economy, great for telecom resurgence 
in this country, great for new consumer services, great for all who 
produce and develop and work for the technology companies that make 
these incredible products available to us in America and to people all 
over the world. This is a good day for this House and for this 
government and for this country, and I urge approval of this 
legislation.
  Mr. MARKEY. Mr. Speaker, I yield such time as he may consume to the 
gentleman from New York (Mr. Towns), the principal cosponsor of this 
legislation.
  Mr. TOWNS. Mr. Speaker, I rise as a cosponsor and strong supporter of 
the Commercial Spectrum Enhancement Act. H.R. 1320 will allow for 
deployment of advanced wireless services through relocating federally 
owned spectrum to commercially designated areas and allowing the 
carriers to bid on the bands of spectrum currently held by the 
government. The bill would also allow NTIA and the Department of 
Defense adequate flexibility to complete the relocation while being 
held liable for the funds spent by the General Accounting Office.
  Another important provision of the bill, Mr. Speaker, deals with the 
Telecommunications Development Fund, TDF, which was founded as part of 
the 1996 Telecommunications Act to ensure that entrepreneurs in rural 
and underserved areas are not left behind by the digital economy.

                              {time}  1045

  The language in H.R. 2350 will allow the TDF to extend loans to start 
up technology and telecom companies in rural and underserved areas 
without being held to the standards of the Fair Credit Reform Act, 
which is good. Not only will this be a boon to small business, but it 
will also spur innovation and investment, both of which are desperately 
needed in this day and age.
  I would like to again thank the gentleman from Louisiana (Chairman 
Tauzin), I would like to thank the ranking member, the gentleman from 
Michigan (Mr. Dingell), the lead sponsor of the bill, the gentleman 
from Michigan (Mr. Upton), chairman of the subcommittee, and the 
ranking member of the Subcommittee on Telecommunications and the 
Internet, the gentleman from Massachusetts (Mr. Markey).
  In addition, I would also like to thank Jesse McCollum from my staff, 
and Will Nordwind, Howard Waltzman, and Greg Rothschild of the 
committee staff, for their efforts as well.
  I urge my colleagues to vote for this good government bill because it 
makes a lot of sense and it is something that we should do.
  Mr. MARKEY. Mr. Speaker, I yield myself 1 minute.
  Mr. Speaker, I would add to that litany of saints which was just 
uttered by the gentleman from New York (Mr. Towns). I would also like 
to add the names of David Schooler, who is counsel to the gentleman 
from Michigan (Mr. Dingell) and the Democrats on the committee, and to 
Colin Crowell on my staff, who participated in the drafting of this 
legislation right from its inception.
  During the course of the actual drafting of the bill, his first son 
Gavin was born, while balancing those two important responsibilities. 
Both of them have come out extremely well over the last month. I think 
our country for the future is much brighter because of the work of 
Colin for our Nation over this past year.
  I hope that the other Members of this great Chamber deem fit to pass 
this important legislation today, which will help us become stronger 
economically while not undermining the defense of our Nation at all.
  Mr. Speaker, I yield back the balance of my time.
  Mr. UPTON. Mr. Speaker, I yield myself such time as I may consume.
  Mr. Speaker, I urge my colleagues to support this legislation. It is 
good legislation, a win-win. I look forward to getting it to the 
President's desk and working with the other body as well to make sure 
this bill happens.
  Mr. GREEN of Texas. Mr. Speaker, I rise in support of H.R. 1320, and 
I would like to thank Chairman Upton, Ranking Member Markey,

[[Page 14356]]

Chairman Tauzin, and Ranking Member Dingell, the dean of the House, for 
the opportunity to work with them on this beneficial legislation, of 
which I am proud to be an original cosponsor.
  I am pleased that our House leadership has moved this bill to the 
floor in a timely manner. This is good, consensus legislation.
  The Commercial Spectrum Enhancement Act is a reasonable, effective 
effort to allow American consumers to more quickly benefit from the 
ambitious rollout of wireless technologies that America's wireless 
industry is planning in the near future.
  By freeing up federal spectrum for the market, consumers who are 
coming to depend on mobile communications will greatly benefit.
  Wireless technology increases economic efficiency and productivity, 
increases convenience and connectivity for individuals and families, 
and is ready to be a major growth sector of the technology economy.
  I would like to point out some key aspects of this bill that make it 
deserving of support by all in this House. Number 1 is filling national 
security needs.
  This bill has a sustainable and predictable funding mechanism to 
ensure DOD does not have to cut corners with their communications.
  Robust communications are especially critical to our modern 
military's ability to get its job done, and DOD, and all other federal 
agencies should be fully, 100 percent compensated for spectrum 
relocation costs.
  Number two is the Congressional oversight of the spectrum auction and 
relocation process to be led by the Commerce Committee and the GAO.
  While the Department of Defense may be the most essential federal 
agency and one with a great tradition of heroism and honor--waste, 
fraud, and abuse do occur there. That is no particular criticism of 
DOD, just the federal government in general.
  Mr. Speaker, I urge my colleagues to suspend the rules and pass this 
consensus legislation.
  Mr. DINGELL. Mr. Speaker, I strongly support H.R. 1320, the 
``Commercial Spectrum Enhancement Act,'' to ensure that consumers 
benefit from the tremendous technological advances in commercial 
wireless services.
  I had several concerns when this bill was first introduced, and I 
commend Chairmen Tauzin and Upton for working with me to address my 
concerns.
  It is important that the Committee on Energy and Commerce, whenever 
it creates a direct funding mechanism to achieve a policy goal, ensure 
that both the Committee and the congress maintain full and effective 
oversight abilities. I am comfortable that the substitute before us 
achieves that goal.
  First, it directs that both the Comptroller General and the Energy 
and Commerce and Appropriations Committees receive reports on the 
preliminary and final cost estimates for all relocations. The 
Committees and the General Accounting Office (GAO) will also receive 
reports on an annual basis regarding adherence to cost estimates and 
proposed timelines. These materials, taken together, will permit the 
Congress to closely monitor the spending inclinations of the Department 
of Defense and other agencies as they relocate to new spectrum.
  Also--this is particularly important--if an agency ever exceeds its 
spending estimates by 10 percent, it has to justify that increase both 
to the relevant Committees and to the GAO. In addition, the government 
agency in question is prohibited from spending the additional request 
for 45 days while the Congress examines the reason for the cost 
overrun.
  These provisions are not perfect, but they represent a good faith 
effort on the part of the Energy and Commerce leadership to exercise 
effective oversight over the relocation process. I am pleased that 
Chairman Tauzin, Subcommittee Chairman Upton, Subcommittee Ranking 
Member Markey and I will be working with the GAO throughout the process 
to ensure that its work is thorough and its oversight is effective.
  Mr. Speaker, I look forward to passing this legislation and to 
bringing the next generation of wireless services to America's 
consumers.
  Mr. UPTON. Mr. Speaker, I yield back the balance of my time.
  The SPEAKER pro tempore (Mr. LaHood). The question is on the motion 
offered by the gentleman from Michigan (Mr. Upton) to suspend the rules 
and pass the bill, H.R. 1320.
  The question was taken.
  The SPEAKER pro tempore. In the opinion of the Chair, two-thirds of 
those present have voted in the affirmative.
  Mr. MARKEY. Mr. Speaker, on that I demand the yeas and nays.
  The yeas and nays were ordered.
  The SPEAKER pro tempore. Pursuant to clause 8 of rule XX and the 
Chair's prior announcement, further proceedings on this motion will be 
postponed.

                          ____________________