[United States Statutes at Large, Volume 126, 112th Congress, 2nd Session]
[From the U.S. Government Publishing Office, www.gpo.gov]


Public Law 112-96
112th Congress

An Act


 
To provide incentives for the creation of jobs, and for other
purposes. <>

Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled, <>
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

(a) Short Title.--This Act may be cited as the ``Middle Class Tax
Relief and Job Creation Act of 2012''.
(b) Table of Contents.--The table of contents for this Act is as
follows:

Sec. 1. Short title; table of contents.

TITLE I--EXTENSION OF PAYROLL TAX REDUCTION

Sec. 1001. Extension of payroll tax reduction.

TITLE II--UNEMPLOYMENT BENEFIT CONTINUATION AND PROGRAM IMPROVEMENT

Sec. 2001. Short title.

Subtitle A--Reforms of Unemployment Compensation to Promote Work and Job
Creation

Sec. 2101. Consistent job search requirements.
Sec. 2102. State flexibility to promote the reemployment of unemployed
workers.
Sec. 2103. Improving program integrity by better recovery of
overpayments.
Sec. 2104. Data exchange standardization for improved interoperability.
Sec. 2105. Drug testing of applicants.

Subtitle B--Provisions Relating To Extended Benefits

Sec. 2121. Short title.
Sec. 2122. Extension and modification of emergency unemployment
compensation program.
Sec. 2123. Temporary extension of extended benefit provisions.
Sec. 2124. Additional extended unemployment benefits under the Railroad
Unemployment Insurance Act.

Subtitle C--Improving Reemployment Strategies Under the Emergency
Unemployment Compensation Program

Sec. 2141. Improved work search for the long-term unemployed.
Sec. 2142. Reemployment services and reemployment and eligibility
assessment activities.
Sec. 2143. Promoting program integrity through better recovery of
overpayments.
Sec. 2144. Restore State flexibility to improve unemployment program
solvency.

Subtitle D--Short-Time Compensation Program

Sec. 2160. Short title.
Sec. 2161. Treatment of short-time compensation programs.
Sec. 2162. Temporary financing of short-time compensation payments in
States with programs in law.
Sec. 2163. Temporary financing of short-time compensation agreements.
Sec. 2164. Grants for short-time compensation programs.
Sec. 2165. Assistance and guidance in implementing programs.

[[Page 157]]

Sec. 2166. Reports.

Subtitle E--Self-Employment Assistance

Sec. 2181. State administration of self-employment assistance programs.
Sec. 2182. Grants for self-employment assistance programs.
Sec. 2183. Assistance and guidance in implementing self-employment
assistance programs.
Sec. 2184. Definitions.

TITLE III--MEDICARE AND OTHER HEALTH PROVISIONS

Subtitle A--Medicare Extensions

Sec. 3001. Extension of MMA section 508 reclassifications.
Sec. 3002. Extension of outpatient hold harmless payments.
Sec. 3003. Physician payment update.
Sec. 3004. Work geographic adjustment.
Sec. 3005. Payment for outpatient therapy services.
Sec. 3006. Payment for technical component of certain physician
pathology services.
Sec. 3007. Ambulance add-on payments.

Subtitle B--Other Health Provisions

Sec. 3101. Qualifying individual program.
Sec. 3102. Transitional medical assistance.

Subtitle C--Health Offsets

Sec. 3201. Reduction of bad debt treated as an allowable cost.
Sec. 3202. Rebase Medicare clinical laboratory payment rates.
Sec. 3203. Rebasing State DSH allotments for fiscal year 2021.
Sec. 3204. Technical correction to the disaster recovery FMAP provision.
Sec. 3205. Prevention and Public Health Fund.

TITLE IV--TANF EXTENSION

Sec. 4001. Short title.
Sec. 4002. Extension of program.
Sec. 4003. Data exchange standardization for improved interoperability.
Sec. 4004. Spending policies for assistance under State TANF programs.
Sec. 4005. Technical corrections.

TITLE V--FEDERAL EMPLOYEES RETIREMENT

Sec. 5001. Increase in contributions to Federal Employees' Retirement
System for new employees.
Sec. 5002. Foreign Service Pension System.
Sec. 5003. Central Intelligence Agency Retirement and Disability System.

TITLE VI--PUBLIC SAFETY COMMUNICATIONS AND ELECTROMAGNETIC SPECTRUM
AUCTIONS

Sec. 6001. Definitions.
Sec. 6002. Rule of construction.
Sec. 6003. Enforcement.
Sec. 6004. National security restrictions on use of funds and auction
participation.

Subtitle A--Reallocation of Public Safety Spectrum

Sec. 6101. Reallocation of D block to public safety.
Sec. 6102. Flexible use of narrowband spectrum.
Sec. 6103. 470-512 MHz public safety spectrum.

Subtitle B--Governance of Public Safety Spectrum

Sec. 6201. Single public safety wireless network licensee.
Sec. 6202. Public safety broadband network.
Sec. 6203. Public Safety Interoperability Board.
Sec. 6204. Establishment of the First Responder Network Authority.
Sec. 6205. Advisory committees of the First Responder Network Authority.
Sec. 6206. Powers, duties, and responsibilities of the First Responder
Network Authority.
Sec. 6207. Initial funding for the First Responder Network Authority.
Sec. 6208. Permanent self-funding; duty to assess and collect fees for
network use.
Sec. 6209. Audit and report.
Sec. 6210. Annual report to Congress.
Sec. 6211. Public safety roaming and priority access.

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Sec. 6212. Prohibition on direct offering of commercial
telecommunications service directly to consumers.
Sec. 6213. Provision of technical assistance.

Subtitle C--Public Safety Commitments

Sec. 6301. State and Local Implementation Fund.
Sec. 6302. State and local implementation.
Sec. 6303. Public safety wireless communications research and
development.

Subtitle D--Spectrum Auction Authority

Sec. 6401. Deadlines for auction of certain spectrum.
Sec. 6402. General authority for incentive auctions.
Sec. 6403. Special requirements for incentive auction of broadcast TV
spectrum.
Sec. 6404. Certain conditions on auction participation prohibited.
Sec. 6405. Extension of auction authority.
Sec. 6406. Unlicensed use in the 5 GHz band.
Sec. 6407. Guard bands and unlicensed use.
Sec. 6408. Study on receiver performance and spectrum efficiency.
Sec. 6409. Wireless facilities deployment.
Sec. 6410. Functional responsibility of NTIA to ensure efficient use of
spectrum.
Sec. 6411. System certification.
Sec. 6412. Deployment of 11 GHz, 18 GHz, and 23 GHz microwave bands.
Sec. 6413. Public Safety Trust Fund.
Sec. 6414. Study on emergency communications by amateur radio and
impediments to amateur radio communications.

Subtitle E--Next Generation 9-1-1 Advancement Act of 2012

Sec. 6501. Short title.
Sec. 6502. Definitions.
Sec. 6503. Coordination of 9-1-1 implementation.
Sec. 6504. Requirements for multi-line telephone systems.
Sec. 6505. GAO study of State and local use of 9-1-1 service charges.
Sec. 6506. Parity of protection for provision or use of Next Generation
9-1-1 services.
Sec. 6507. Commission proceeding on autodialing.
Sec. 6508. Report on costs for requirements and specifications of Next
Generation 9-1-1 services.
Sec. 6509. Commission recommendations for legal and statutory framework
for Next Generation 9-1-1 services.

Subtitle F--Telecommunications Development Fund

Sec. 6601. No additional Federal funds.
Sec. 6602. Independence of the Fund.

Subtitle G--Federal Spectrum Relocation

Sec. 6701. Relocation of and spectrum sharing by Federal Government
stations.
Sec. 6702. Spectrum Relocation Fund.
Sec. 6703. National security and other sensitive information.

TITLE VII--MISCELLANEOUS PROVISIONS

Sec. 7001. Repeal of certain shifts in the timing of corporate estimated
tax payments.
Sec. 7002. Repeal of requirement relating to time for remitting certain
merchandise processing fees.
Sec. 7003. Treatment for PAYGO purposes.

TITLE I--EXTENSION OF PAYROLL TAX REDUCTION

SEC. 1001. EXTENSION OF PAYROLL TAX REDUCTION.

(a) In General.--Subsection (c) of section 601 of the Tax Relief,
Unemployment Insurance Reauthorization, and Job Creation Act of 2010 (26
U.S.C. 1401 note) is amended to read as follows:
``(c) <>  Payroll Tax Holiday Period.--The term
`payroll tax holiday period' means calendar years 2011 and 2012.''.

(b) Conforming Amendments.--Section 601 of such Act (26 U.S.C. 1401
note) is amended by striking subsections (f) and (g).

[[Page 159]]

(c) <>  Effective Date.--The amendments
made by this section shall apply to remuneration received, and taxable
years beginning, after December 31, 2011.

TITLE II--UNEMPLOYMENT <>  BENEFIT CONTINUATION AND PROGRAM IMPROVEMENT
SEC. 2001. SHORT TITLE.

This title may be cited as the ``Extended Benefits, Reemployment,
and Program Integrity Improvement Act''.

Subtitle A--Reforms of Unemployment Compensation to Promote Work and Job
Creation

SEC. 2101. CONSISTENT JOB SEARCH REQUIREMENTS.

(a) In General.--Section 303(a) <>  of the Social
Security Act is amended by adding at the end the following:
``(12) A requirement that, as a condition of eligibility for
regular compensation for any week, a claimant must be able to
work, available to work, and actively seeking work.''.

(b) <>  Effective Date.--The amendment made
by subsection (a) shall apply to weeks beginning after the end of the
first session of the State legislature which begins after the date of
enactment of this Act.
SEC. 2102. STATE FLEXIBILITY TO PROMOTE THE REEMPLOYMENT OF
UNEMPLOYED WORKERS.

Title III of the Social Security Act (42 U.S.C. 501 and following)
is amended by adding at the end the following:


``demonstration projects


``Sec. 305.  (a) <>  The Secretary of Labor may
enter into agreements, with up to 10 States that submit an application
described in subsection (b), for the purpose of allowing such States to
conduct demonstration projects to test and evaluate measures designed--
``(1) to expedite the reemployment of individuals who have
established a benefit year and are otherwise eligible to claim
unemployment compensation under the State law of such State; or
``(2) to improve the effectiveness of a State in carrying
out its State law with respect to reemployment.

``(b) The Governor of any State desiring to conduct a demonstration
project under this section shall submit an application to the Secretary
of Labor. Any such application shall include--
``(1) a general description of the proposed demonstration
project, including the authority (under the laws of the State)
for the measures to be tested, as well as the period of time
during which such demonstration project would be conducted;
``(2) if a waiver under subsection (c) is requested, a
statement describing the specific aspects of the project to
which

[[Page 160]]

the waiver would apply and the reasons why such waiver is
needed;
``(3) a description of the goals and the expected
programmatic outcomes of the demonstration project, including
how the project would contribute to the objective described in
subsection (a)(1), subsection (a)(2), or both;
``(4) assurances (accompanied by supporting analysis) that
the demonstration project would operate for a period of at least
1 calendar year and not result in any increased net costs to the
State's account in the Unemployment Trust Fund;
``(5) a description of the manner in which the State--
``(A) will conduct an impact evaluation, using a
methodology appropriate to determine the effects of the
demonstration project, including on individual skill
levels, earnings, and employment retention; and
``(B) will determine the extent to which the goals
and outcomes described in paragraph (3) were achieved;
``(6) assurances that the State will provide any reports
relating to the demonstration project, after its approval, as
the Secretary of Labor may require; and
``(7) assurances that employment meets the State's suitable
work requirement and the requirements of section 3304(a)(5) of
the Internal Revenue Code of 1986.

``(c) <>  The Secretary of Labor may waive
any of the requirements of section 3304(a)(4) of the Internal Revenue
Code of 1986 or of paragraph (1) or (5) of section 303(a), to the extent
and for the period the Secretary of Labor considers necessary to enable
the State to carry out a demonstration project under this section.

``(d) A demonstration project under this section--
``(1) may be commenced any time after the date of enactment
of this section;
``(2) <>  may not be approved for a
period of time greater than 3 years; and
``(3) <>  must be completed by not later
than December 31, 2015.

``(e) Activities that may be pursued under a demonstration project
under this section are limited to--
``(1) subsidies for employer-provided training, such as wage
subsidies; and
``(2) direct disbursements to employers who hire individuals
receiving unemployment compensation, not to exceed the weekly
benefit amount for each such individual, to pay part of the cost
of wages that exceed the unemployed individual's prior benefit
level.

``(f) <>  The Secretary of Labor shall, in the
case of any State for which an application is submitted under subsection
(b)--
``(1) <>  notify the State as to
whether such application has been approved or denied within 30
days after receipt of a complete application; and
``(2) <>  provide public notice of the
decision within 10 days after providing notification to the
State in accordance with paragraph (1).

Public notice under paragraph (2) may be provided through the Internet
or other appropriate means. Any application under this section that has
not been denied within the 30-day period described in paragraph (1)
shall be deemed approved, and public notice of

[[Page 161]]

any approval under this sentence shall be provided within 10 days
thereafter.
``(g) <>  The Secretary of Labor may terminate
a demonstration project under this section if the Secretary determines
that the State has violated the substantive terms or conditions of the
project.

``(h) Funding certified under section 302(a) may be used for an
approved demonstration project.''.
SEC. 2103. IMPROVING PROGRAM INTEGRITY BY BETTER RECOVERY OF
OVERPAYMENTS.

(a) Use of Unemployment Compensation to Repay Overpayments.--Section
3304(a)(4)(D) of the Internal Revenue Code of 1986 and section 303(g)(1)
of the Social Security <> Act are each
amended by striking ``may'' and inserting ``shall''.

(b) Use of Unemployment Compensation to Repay Federal Additional
Compensation Overpayments.--Section 303(g)(3) of the Social Security Act
is amended by inserting ``Federal additional compensation,'' after
``trade adjustment allowances,''.
(c) <>  Effective Date.--The amendments
made by this section shall apply to weeks beginning after the end of the
first session of the State legislature which begins after the date of
enactment of this Act.
SEC. 2104. DATA EXCHANGE STANDARDIZATION FOR IMPROVED
INTEROPERABILITY.

(a) In General.--Title IX of the Social Security Act is amended by
adding at the end the following:


``DATA EXCHANGE STANDARDIZATION FOR IMPROVED INTEROPERABILITY


``Data Exchange Standards

``Sec. 911. (a)(1) <> The Secretary of Labor, in consultation with an interagency work
group which shall be established by the Office of Management and Budget,
and considering State and employer perspectives, shall, by rule,
designate a data exchange standard for any category of information
required under title III, title XII, or this title.

``(2) Data exchange standards designated under paragraph (1) shall,
to the extent practicable, be nonproprietary and interoperable.
``(3) In designating data exchange standards under this subsection,
the Secretary of Labor shall, to the extent practicable, incorporate--
``(A) interoperable standards developed and maintained by an
international voluntary consensus standards body, as defined by
the Office of Management and Budget, such as the International
Organization for Standardization;
``(B) interoperable standards developed and maintained by
intergovernmental partnerships, such as the National Information
Exchange Model; and
``(C) interoperable standards developed and maintained by
Federal entities with authority over contracting and financial
assistance, such as the Federal Acquisition Regulations Council.

[[Page 162]]

``Data Exchange Standards for Reporting

``(b)(1) The Secretary of Labor, in consultation with an interagency
work group established by the Office of Management and Budget, and
considering State and employer perspectives, shall, by rule, designate
data exchange standards to govern the reporting required under title
III, title XII, or this title.
``(2) The data exchange standards required by paragraph (1) shall,
to the extent practicable--
``(A) incorporate a widely accepted, nonproprietary,
searchable, computer-readable format;
``(B) be consistent with and implement applicable accounting
principles; and
``(C) be capable of being continually upgraded as necessary.

``(3) In designating reporting standards under this subsection, the
Secretary of Labor shall, to the extent practicable, incorporate
existing nonproprietary standards, such as the eXtensible Markup
Language.''.
(b) <>  Effective Dates.--
(1) Data exchange standards.--The Secretary of Labor shall
issue a proposed rule under section 911(a)(1) of the Social
Security Act (as added by subsection (a)) within 12 months after
the date of the enactment of this section, and shall issue a
final rule under such section 911(a)(1), after public comment,
within 24 months after such date of enactment.
(2) Data reporting standards.--The reporting standards
required under section 911(b)(1) of such Act (as so added) shall
become effective with respect to reports required in the first
reporting period, after the effective date of the final rule
referred to in paragraph (1) of this subsection, for which the
authority for data collection and reporting is established or
renewed under the Paperwork Reduction Act.
SEC. 2105. DRUG TESTING OF APPLICANTS.

Section 303 of the Social Security <> Act is
amended by adding at the end the following:

``(l)(1) Nothing in this Act or any other provision of Federal law
shall be considered to prevent a State from enacting legislation to
provide for--
``(A) testing an applicant for unemployment compensation for
the unlawful use of controlled substances as a condition for
receiving such compensation, if such applicant--
``(i) was terminated from employment with the
applicant's most recent employer (as defined under the
State law) because of the unlawful use of controlled
substances; or
``(ii) <>  is an individual for
whom suitable work (as defined under the State law) is
only available in an occupation that regularly conducts
drug testing (as determined under regulations issued by
the Secretary of Labor); or
``(B) denying such compensation to such applicant on the
basis of the result of the testing conducted by the State under
legislation described in subparagraph (A).

``(2) <>  For purposes of this subsection--
``(A) the term `unemployment compensation' has the meaning
given such term in subsection (d)(2)(A); and

[[Page 163]]

``(B) the term `controlled substance' has the meaning given
such term in section 102 of the Controlled Substances Act (21
U.S.C. 802).''.

Subtitle B--Provisions <> Relating To Extended Benefits
SEC. 2121. <> SHORT TITLE.

This subtitle may be cited as the ``Unemployment Benefits Extension
Act of 2012''.
SEC. 2122. EXTENSION AND MODIFICATION OF EMERGENCY UNEMPLOYMENT
COMPENSATION PROGRAM.

(a) Extension.--Section 4007 of the Supplemental Appropriations Act,
2008 (Public Law 110-252; 26 U.S.C. 3304 note) is amended--
(1) in subsection (a)--
(A) by striking ``Except as provided in subsection
(b), an'' and inserting ``An''; and
(B) by striking ``March 6, 2012'' and inserting
``January 2, 2013''; and
(2) by striking subsection (b) and inserting the following:

``(b) Termination.--No compensation under this title shall be
payable for any week subsequent to the last week described in subsection
(a).''.
(b) <>  Modifications Relating to
Triggers.--
(1) For second-tier emergency unemployment compensation.--
Section 4002(c) of such Act is amended--
(A) in the subsection heading, by striking ``Special
Rule'' and inserting ``Second-tier Emergency
Unemployment Compensation'';
(B) in paragraph (1), by striking ``At'' and all
that follows through ``augmented by an amount'' and
inserting ``If, at the time that the amount established
in an individual's account under subsection (b) is
exhausted or at any time thereafter, such individual's
State is in an extended benefit period (as determined
under paragraph (2)), such account shall be augmented by
an amount (hereinafter `second-tier emergency
unemployment compensation')'';
(C) by redesignating paragraph (2) as paragraph (4);
and
(D) by inserting after paragraph (1) the following:
``(2) <>  Extended benefit period.--
For purposes of paragraph (1), a State shall be considered to be
in an extended benefit period, as of any given time, if such a
period would then be in effect for such State under such Act
if--
``(A) section 203(f) of the Federal-State Extended
Unemployment Compensation Act of 1970 were applied to
such State (regardless of whether the State by law had
provided for such application); and
``(B) such section 203(f)--
``(i) were applied by substituting the
applicable percentage under paragraph (3) for `6.5
percent' in paragraph (1)(A)(i) thereof; and
``(ii) did not include the requirement under
paragraph (1)(A)(ii) thereof.

[[Page 164]]

``(3) Applicable percentage.--The applicable percentage
under this paragraph is, for purposes of determining if a State
is in an extended benefit period as of a date occurring in a
week ending--
``(A) before June 1, 2012, 0 percent; and
``(B) after the last week under subparagraph (A), 6
percent.''.
(2) For third-tier emergency unemployment compensation.--
Section 4002(d) of such Act is amended--
(A) in paragraph (2)(A), by striking ``under such
Act'' and inserting ``under the Federal-State Extended
Unemployment Compensation Act of 1970'';
(B) in paragraph (2)(B)(ii)(I), by striking the
matter after ``substituting'' and before ``in paragraph
(1)(A)(i) thereof'' and inserting ``the applicable
percentage under paragraph (3) for `6.5 percent' '';
(C) by redesignating paragraph (3) as paragraph (4);
and
(D) by inserting after paragraph (2) the following:
``(3) Applicable percentage.--The applicable percentage
under this paragraph is, for purposes of determining if a State
is in an extended benefit period as of a date occurring in a
week ending--
``(A) before June 1, 2012, 6 percent; and
``(B) after the last week under subparagraph (A), 7
percent.''.
(3) For fourth-tier emergency unemployment compensation.--
Section 4002(e) of such Act is amended--
(A) in paragraph (2)(A), by striking ``under such
Act'' and inserting ``under the Federal-State Extended
Unemployment Compensation Act of 1970'';
(B) in paragraph (2)(B)(ii)(I), by striking the
matter after ``substituting'' and before ``in paragraph
(1)(A)(i) thereof'' and inserting ``the applicable
percentage under paragraph (3) for `6.5 percent' '';
(C) by redesignating paragraph (3) as paragraph (4);
and
(D) by inserting after paragraph (2) the following:
``(3) Applicable percentage.--The applicable percentage
under this paragraph is, for purposes of determining if a State
is in an extended benefit period as of a date occurring in a
week ending--
``(A) before June 1, 2012, 8.5 percent; and
``(B) after the last week under subparagraph (A), 9
percent.''.

(c) <>  Modifications Relating to Weeks of
Emergency Unemployment Compensation.--
(1) Number of weeks in first tier beginning after september
2, 2012.--Section 4002(b) of such Act is amended--
(A) by redesignating paragraph (2) as paragraph (3);
and
(B) by inserting after paragraph (1) the following:
``(2) <>  Special rule relating to
amounts established in an account as of a week ending after
september 2, 2012.--Notwithstanding any provision of paragraph
(1), in the case of any account established as of a week ending
after September 2, 2012--

[[Page 165]]

``(A) paragraph (1)(A) shall be applied by
substituting `54 percent' for `80 percent'; and
``(B) paragraph (1)(B) shall be applied by
substituting `14 weeks' for `20 weeks'.''.
(2) Number of weeks in third tier beginning after september
2, 2012.--Section 4002(d) of such Act is amended by adding after
paragraph (4) (as so redesignated by subsection (b)(2)(C)) the
following:
``(5) <>  Special rule relating to
amounts added to an account as of a week ending after september
2, 2012.--Notwithstanding any provision of paragraph (1), if
augmentation under this subsection occurs as of a week ending
after September 2, 2012--
``(A) paragraph (1)(A) shall be applied by
substituting `35 percent' for `50 percent'; and
``(B) paragraph (1)(B) shall be applied by
substituting `9 times' for `13 times'.''.
(3) Number of weeks in fourth tier.--Section 4002(e) of such
Act is amended by adding after paragraph (4) (as so redesignated
by subsection (b)(3)(C)) the following:
``(5) Special rules relating to amounts added to an
account.--
``(A) March to may of 2012.--
``(i) <>  Special
rule.--Notwithstanding any provision of paragraph
(1) but subject to the following 2 sentences, if
augmentation under this subsection occurs as of a
week ending after the date of enactment of this
paragraph and before June 1, 2012 (or if, as of
such date of enactment, any fourth-tier amounts
remain in the individual's account)--
``(I) paragraph (1)(A) shall be
applied by substituting `62 percent' for
`24 percent'; and
``(II) paragraph (1)(B) shall be
applied by substituting `16 times' for
`6 times'.
The preceding sentence shall apply only if, at the
time that the account would be augmented under
this subparagraph, such individual's State is not
in an extended benefit period as determined under
the Federal-State Extended Unemployment
Compensation Act of 1970. In no event shall the
total amount added to the account of an individual
under this subparagraph cause, in the case of an
individual described in the parenthetical matter
in the first sentence of this clause, the sum of
the total amount previously added to such
individual's account under this subsection (as in
effect before the date of enactment of this
paragraph) and any further amounts added as a
result of the enactment of this clause, to exceed
the total amount allowable under subclause (I) or
(II), as the case may be.
``(ii) Limitation.--Notwithstanding any other
provision of this title, the amounts added to the
account of an individual under this subparagraph
may not cause the sum of the amounts previously
established in or added to such account, plus any
weeks of extended benefits provided to such
individual under the Federal-State Extended
Unemployment Compensation Act of

[[Page 166]]

1970 (based on the same exhaustion of regular
compensation under section 4001(b)(1)), to in the
aggregate exceed the lesser of--
``(I) 282 percent of the total
amount of regular compensation
(including dependents' allowances)
payable to the individual during the
individual's benefit year under the
State law; or
``(II) 73 times the individual's
average weekly benefit amount (as
determined under subsection (b)(3)) for
the benefit year.
``(B) <>  After august of
2012.--Notwithstanding any provision of paragraph (1),
if augmentation under this subsection occurs as of a
week ending after September 2, 2012--
``(i) paragraph (1)(A) shall be applied by
substituting `39 percent' for `24 percent'; and
``(ii) paragraph (1)(B) shall be applied by
substituting `10 times' for `6 times'.''.

(d) <>  Order of Payments Requirement.--
(1) In general.--Section 4001(e) of such Act is amended to
read as follows:

``(e) <>  Coordination Rule.--
An agreement under this section shall apply with respect to a State only
upon a determination by the Secretary that, under the State law or other
applicable rules of such State, the payment of extended compensation for
which an individual is otherwise eligible must be deferred until after
the payment of any emergency unemployment compensation under section
4002, as amended by the Unemployment Benefits Extension Act of 2012, for
which the individual is concurrently eligible.''.
(2) Technical and conforming amendments.--Section 4001(b)(2)
of such Act is amended--
(A) by striking ``or extended compensation''; and
(B) by striking ``law (except as provided under
subsection (e));'' and inserting ``law;''.

(e) Funding.--Section 4004(e)(1) of such <> Act is amended--
(1) in subparagraph (G), by striking ``and'' at the end; and
(2) by inserting after subparagraph (H) the following:
``(I) the amendments made by section 2122 of the
Unemployment Benefits Extension Act of 2012; and''.

(f) <>  Effective Dates.--
(1) In general.--The amendments made by subsections (b),
(c), and (d) shall take effect as of February 28, 2012, and
shall apply with respect to weeks of unemployment beginning
after that date.
(2) Week defined.--For purposes of this subsection, the term
``week'' has the meaning given such term under section 4006 of
the Supplemental Appropriations Act, 2008.
SEC. 2123. TEMPORARY EXTENSION OF EXTENDED BENEFIT PROVISIONS.

(a) In General.--Section 2005 of the Assistance for Unemployed
Workers and Struggling Families Act, as contained in Public Law 111-5
(26 U.S.C. 3304 note), is amended--
(1) by striking ``March 7, 2012'' each place it appears and
inserting ``December 31, 2012''; and

[[Page 167]]

(2) in subsection (c), by striking ``August 15, 2012'' and
inserting ``June 30, 2013''.

(b) Extension of Matching for States With No Waiting Week.--Section
5 of the Unemployment Compensation Extension Act of 2008 (Public Law
110-449; 26 U.S.C. 3304 note) is amended by striking ``August 15, 2012''
and inserting ``June 30, 2013''.
(c) Extension of Modification of Indicators Under the Extended
Benefit Program.--Section 203 of the Federal-State Extended Unemployment
Compensation Act of 1970 (26 U.S.C. 3304 note) is amended--
(1) in subsection (d), by striking ``February 29, 2012'' and
inserting ``December 31, 2012''; and
(2) in subsection (f)(2), by striking ``February 29, 2012''
and inserting ``December 31, 2012''.

(d) <>  Effective Date.--The amendments
made by this section shall take effect as if included in the enactment
of the Temporary Payroll Tax Cut Continuation Act of 2011 (Public Law
112-78).
SEC. 2124. ADDITIONAL EXTENDED UNEMPLOYMENT BENEFITS UNDER THE
RAILROAD UNEMPLOYMENT INSURANCE ACT.

(a) Extension.--Section 2(c)(2)(D)(iii) of the Railroad Unemployment
Insurance Act, as added by section 2006 of the American Recovery and
Reinvestment Act of 2009 (Public Law 111-5) and as amended by section 9
of the Worker, Homeownership, and Business Assistance Act of 2009
(Public Law 111-92), section 505 of the Tax Relief, Unemployment
Insurance Reauthorization, and Job Creation Act of 2010 (Public Law 111-
312), and section 202 of the Temporary Payroll Tax Cut Continuation Act
of 2011 (Public Law 112-78), <> is amended--
(1) by striking ``August 31, 2011'' and inserting ``June 30,
2012''; and
(2) by striking ``February 29, 2012'' and inserting
``December 31, 2012''.

(b) Clarification on Authority to Use Funds.--Funds appropriated
under either the first or second sentence of clause (iv) of section
2(c)(2)(D) of the Railroad Unemployment Insurance Act shall be available
to cover the cost of additional extended unemployment benefits provided
under such section 2(c)(2)(D) by reason of the amendments made by
subsection (a) as well as to cover the cost of such benefits provided
under such section 2(c)(2)(D), as in effect on the day before the date
of enactment of this Act.
(c) <>  Funding for
Administration.--Out of any funds in the Treasury not otherwise
appropriated, there are appropriated to the Railroad Retirement Board
$500,000 for administrative expenses associated with the payment of
additional extended unemployment benefits provided under section
2(c)(2)(D) of the Railroad Unemployment Insurance Act by reason of the
amendments made by subsection (a), to remain available until expended.

[[Page 168]]

Subtitle C--Improving Reemployment Strategies Under the Emergency
Unemployment Compensation Program

SEC. 2141. IMPROVED WORK SEARCH FOR THE LONG-TERM UNEMPLOYED.

(a) In General.--Section 4001(b) of the Supplemental Appropriations
Act, 2008 (Public Law 110-252; 26 U.S.C. 3304 note) is amended--
(1) by striking ``and'' at the end of paragraph (2);
(2) by striking the period at the end of paragraph (3) and
inserting ``; and''; and
(3) by adding at the end the following:
``(4) are able to work, available to work, and actively
seeking work.''.

(b) Actively Seeking Work.--Section 4001 of such Act is amended by
adding at the end the following:
``(h) Actively Seeking Work.--
``(1) <>  In general.--For purposes of
subsection (b)(4), the term `actively seeking work' means, with
respect to any individual, that such individual--
``(A) is registered for employment services in such
a manner and to such extent as prescribed by the State
agency;
``(B) has engaged in an active search for employment
that is appropriate in light of the employment available
in the labor market, the individual's skills and
capabilities, and includes a number of employer contacts
that is consistent with the standards communicated to
the individual by the State;
``(C) has maintained a record of such work search,
including employers contacted, method of contact, and
date contacted; and
``(D) when requested, has provided such work search
record to the State agency.
``(2) <>  Random auditing.--The Secretary
shall establish for each State a minimum number of claims for
which work search records must be audited on a random basis in
any given week.''.
SEC. 2142. REEMPLOYMENT SERVICES AND REEMPLOYMENT AND ELIGIBILITY
ASSESSMENT ACTIVITIES.

(a) Provision of Services and Activities.--Section 4001 of such Act,
as amended by section 2141(b), is further amended by adding at the end
the following:
``(i) Provision of Services and Activities.--
``(1) In general.--An agreement under this section shall
require the following:
``(A) The State which is party to such agreement
shall provide reemployment services and reemployment and
eligibility assessment activities to each individual--
``(i) who, on or after the 30th day after the
date of enactment of the Extended Benefits,
Reemployment, and Program Integrity Improvement
Act, begins receiving amounts described in
subsections (b) and (c); and

[[Page 169]]

``(ii) while such individual continues to
receive emergency unemployment compensation under
this title.
``(B) As a condition of eligibility for emergency
unemployment compensation for any week--
``(i) a claimant who has been duly referred to
reemployment services shall participate in such
services; and
``(ii) a claimant shall be actively seeking
work (determined applying subsection (i)).
``(2) Description of services and activities.--The
reemployment services and in-person reemployment and eligibility
assessment activities provided to individuals receiving
emergency unemployment compensation described in paragraph (1)--
``(A) shall include--
``(i) the provision of labor market and career
information;
``(ii) an assessment of the skills of the
individual;
``(iii) orientation to the services available
through the one-stop centers established under
title I of the Workforce Investment Act of 1998;
and
``(iv) review of the eligibility of the
individual for emergency unemployment compensation
relating to the job search activities of the
individual; and
``(B) may include the provision of--
``(i) comprehensive and specialized
assessments;
``(ii) individual and group career counseling;
``(iii) training services;
``(iv) additional reemployment services; and
``(v) job search counseling and the
development or review of an individual
reemployment plan that includes participation in
job search activities and appropriate workshops.
``(3) Participation requirement.--As a condition of
continuing eligibility for emergency unemployment compensation
for any week, an individual who has been referred to
reemployment services or reemployment and eligibility assessment
activities under this subsection shall participate in such
services or activities, unless the State agency responsible for
the administration of State unemployment compensation law
determines that--
``(A) such individual has completed participating in
such services or activities; or
``(B) there is justifiable cause for failure to
participate or to complete participating in such
services or activities, as determined in accordance with
guidance to be issued by the Secretary.''.

(b) <>  Issuance of Guidance.--
Not later than 30 days after the date of enactment of this Act, the
Secretary shall issue guidance on the implementation of the reemployment
services and reemployment and eligibility assessment activities required
to be provided under the amendment made by subsection (a).

(c) Funding.--
(1) In general.--Section 4004(c) of the Supplemental
Appropriations Act, 2008 (Public Law 110-252; 26 U.S.C. 3304
note) is amended--

[[Page 170]]

(A) by striking ``States.--There'' and inserting the
following: ``States.--
``(1) Administration.--There''; and
(B) by adding at the end the following new
paragraph:
``(2) Reemployment services and reemployment and eligibility
assessment activities.--
``(A) Appropriation.--There are appropriated from
the general fund of the Treasury, for the period of
fiscal year 2012 through fiscal year 2013, out of the
employment security administration account (as
established by section 901(a) of the Social Security
Act), such sums as determined by the Secretary of Labor
in accordance with subparagraph (B) to assist States in
providing reemployment services and reemployment and
eligibility assessment activities described in section
4001(h)(2).
``(B) Determination of total amount.--The amount
referred to in subparagraph (A) is the amount the
Secretary of Labor estimates is equal to--
``(i) the number of individuals who will
receive reemployment services and reemployment
eligibility and assessment activities described in
section 4001(h)(2) in all States through the date
specified in section 4007(b)(3); multiplied by
``(ii) $85.
``(C) Distribution among states.--Of the amounts
appropriated under subparagraph (A), the Secretary of
Labor shall distribute amounts to each State, in
accordance with section 4003(c), that the Secretary
estimates is equal to--
``(i) the number of individuals who will
receive reemployment services and reemployment and
eligibility assessment activities described in
section 4001(h)(2) in such State through the date
specified in section 4007(b)(3); multiplied by
``(ii) $85.''.
(2) Transfer of funds.--Section 4004(e) of the Supplemental
Appropriations Act, 2008 (Public Law 110-252; 26 U.S.C. 3304
note) is amended--
(A) in paragraph (1)(G), by striking ``and'' at the
end;
(B) in paragraph (2), by striking the period at the
end and inserting ``; and''; and
(C) by adding at the end the following paragraph:
``(3) to the Employment Security Administration account (as
established by section 901(a) of the Social Security Act) such
sums as the Secretary of Labor determines to be necessary in
accordance with subsection (c)(2) to assist States in providing
reemployment services and reemployment eligibility and
assessment activities described in section 4001(h)(2).''.
SEC. 2143. PROMOTING PROGRAM INTEGRITY THROUGH BETTER RECOVERY OF
OVERPAYMENTS.

Section 4005(c)(1) of the Supplemental Appropriations Act, 2008
(Public Law 110-252; 26 U.S.C. 3304 note) is amended--
(1) by striking ``may'' and inserting ``shall''; and
(2) by striking ``except that'' and all that follows through
``made'' and inserting ``in accordance with the same procedures

[[Page 171]]

as apply to the recovery of overpayments of regular unemployment
benefits paid by the State''.
SEC. 2144. RESTORE STATE FLEXIBILITY TO IMPROVE UNEMPLOYMENT
PROGRAM SOLVENCY.

Subsection (g) of section 4001 of the Supplemental Appropriations
Act, 2008 (Public Law 110-252; 26 U.S.C. 3304 note) shall not apply with
respect to a State that has enacted a law before March 1, 2012, that,
upon taking effect, would violate such subsection.

Subtitle D--Short-Time <> Compensation Program
SEC. 2160. <>  SHORT TITLE.

This subtitle may be cited as the ``Layoff Prevention Act of 2012''.
SEC. 2161. TREATMENT OF SHORT-TIME COMPENSATION PROGRAMS.

(a) Definition.--
(1) In general.--Section 3306 of the Internal Revenue Code
of 1986 (26 U.S.C. 3306) is amended by adding at the end the
following new subsection:

``(v) <>  Short-Time Compensation Program.--For
purposes of this part, the term `short-time compensation program' means
a program under which--
``(1) the participation of an employer is voluntary;
``(2) an employer reduces the number of hours worked by
employees in lieu of layoffs;
``(3) such employees whose workweeks have been reduced by at
least 10 percent, and by not more than the percentage, if any,
that is determined by the State to be appropriate (but in no
case more than 60 percent), are not disqualified from
unemployment compensation;
``(4) the amount of unemployment compensation payable to any
such employee is a pro rata portion of the unemployment
compensation which would otherwise be payable to the employee if
such employee were unemployed;
``(5) such employees meet the availability for work and work
search test requirements while collecting short-time
compensation benefits, by being available for their workweek as
required by the State agency;
``(6) eligible employees may participate, as appropriate, in
training (including employer-sponsored training or worker
training funded under the Workforce Investment Act of 1998) to
enhance job skills if such program has been approved by the
State agency;
``(7) <>  the State agency shall
require employers to certify that if the employer provides
health benefits and retirement benefits under a defined benefit
plan (as defined in section 414(j)) or contributions under a
defined contribution plan (as defined in section 414(i)) to any
employee whose workweek is reduced under the program that such
benefits will continue to be provided to employees participating
in the short-time compensation program under the same terms and
conditions as though the workweek of such employee had not been
reduced

[[Page 172]]

or to the same extent as other employees not participating in
the short-time compensation program;
``(8) <>  the State agency shall require an
employer to submit a written plan describing the manner in which
the requirements of this subsection will be implemented
(including a plan for giving advance notice, where feasible, to
an employee whose workweek is to be reduced) together with an
estimate of the number of layoffs that would have occurred
absent the ability to participate in short-time compensation and
such other information as the Secretary of Labor determines is
appropriate;
``(9) the terms of the employer's written plan and
implementation shall be consistent with employer obligations
under applicable Federal and State laws; and
``(10) upon request by the State and approval by the
Secretary of Labor, only such other provisions are included in
the State law that are determined to be appropriate for purposes
of a short-time compensation program.''.
(2) <>  Effective date.--Subject to
paragraph (3), the amendment made by paragraph (1) shall take
effect on the date of the enactment of this Act.
(3) <>  Transition period for
existing programs.--In the case of a State that is administering
a short-time compensation program as of the date of the
enactment of this Act and the State law cannot be administered
consistent with the amendment made by paragraph (1), such
amendment shall take effect on the earlier of--
(A) the date the State changes its State law in
order to be consistent with such amendment; or
(B) the date that is 2 years and 6 months after the
date of the enactment of this Act.

(b) Conforming Amendments.--
(1) Internal revenue code of 1986.--
(A) Subparagraph (E) of section 3304(a)(4) of the
Internal Revenue Code of <> 1986 is
amended to read as follows:
``(E) amounts may be withdrawn for the payment of
short-time compensation under a short-time compensation
program (as defined under section 3306(v));''.
(B) Subsection (f) of section 3306 of the Internal
Revenue Code of 1986 is amended--
(i) by striking paragraph (5) (relating to
short-time compensation) and inserting the
following new paragraph:
``(5) amounts may be withdrawn for the payment of short-time
compensation under a short-time compensation program (as defined
in subsection (v)); and''; and
(ii) by redesignating paragraph (5) (relating
to self-employment assistance program) as
paragraph (6).
(2) Social security act.--Section 303(a)(5) of the Social
Security <> Act is amended by striking ``the
payment of short-time compensation under a plan approved by the
Secretary of Labor'' and inserting ``the payment of short-time
compensation under a short-time compensation program (as defined
in section 3306(v) of the Internal Revenue Code of 1986)''.
(3) <>  Unemployment
compensation amendments of 1992.--Subsections (b) through (d) of
section 401 of the Unemployment

[[Page 173]]

Compensation Amendments of 1992 (26 U.S.C. 3304 note) are
repealed.
SEC. 2162. <>  TEMPORARY FINANCING OF
SHORT-TIME COMPENSATION PAYMENTS IN
STATES WITH PROGRAMS IN LAW.

(a) Payments to States.--
(1) In general.--Subject to paragraph (3), there shall be
paid to a State an amount equal to 100 percent of the amount of
short-time compensation paid under a short-time compensation
program (as defined in section 3306(v) of the Internal Revenue
Code of 1986, as added by section 2161(a)) under the provisions
of the State law.
(2) Terms of payments.--Payments made to a State under
paragraph (1) shall be payable by way of reimbursement in such
amounts as the Secretary estimates the State will be entitled to
receive under this section for each calendar month, reduced or
increased, as the case may be, by any amount by which the
Secretary finds that the Secretary's estimates for any prior
calendar month were greater or less than the amounts which
should have been paid to the State. Such estimates may be made
on the basis of such statistical, sampling, or other method as
may be agreed upon by the Secretary and the State agency of the
State involved.
(3) Limitations on payments.--
(A) General payment limitations.--No payments shall
be made to a State under this section for short-time
compensation paid to an individual by the State during a
benefit year in excess of 26 times the amount of regular
compensation (including dependents' allowances) under
the State law payable to such individual for a week of
total unemployment.
(B) Employer limitations.--No payments shall be made
to a State under this section for benefits paid to an
individual by the State under a short-time compensation
program if such individual is employed by the
participating employer on a seasonal, temporary, or
intermittent basis.

(b) Applicability.--
(1) In general.--Payments to a State under subsection (a)
shall be available for weeks of unemployment--
(A) <>  beginning on or after
the date of the enactment of this Act; and
(B) <>  ending on or before
the date that is 3 years and 6 months after the date of
the enactment of this Act.
(2) Three-year funding limitation for combined payments
under this section and section 2163.--States may receive
payments under this section and section 2163 with respect to a
total of not more than 156 weeks.

(c) Two-Year Transition Period for Existing Programs.--During any
period that the transition provision under section 2161(a)(3) is
applicable to a State with respect to a short-time compensation program,
such State shall be eligible for payments under this section. Subject to
paragraphs (1)(B) and (2) of subsection (b), if at any point after the
date of the enactment of this Act the State enacts a State law providing
for the payment of short-time compensation under a short-time
compensation program that meets the definition of such a program under
section 3306(v) of the Internal Revenue Code of 1986, as added by
section 2161(a),

[[Page 174]]

the State shall be eligible for payments under this section after the
effective date of such enactment.
(d) Funding and Certifications.--
(1) <>  Funding.--There
are appropriated, out of moneys in the Treasury not otherwise
appropriated, such sums as may be necessary for purposes of
carrying out this section.
(2) Certifications.--The Secretary shall from time to time
certify to the Secretary of the Treasury for payment to each
State the sums payable to such State under this section.

(e) Definitions.--In this section:
(1) Secretary.--The term ``Secretary'' means the Secretary
of Labor.
(2) State; state agency; state law.--The terms ``State'',
``State agency'', and ``State law'' have the meanings given
those terms in section 205 of the Federal-State Extended
Unemployment Compensation Act of 1970 (26 U.S.C. 3304 note).
SEC. 2163. <>  TEMPORARY FINANCING OF
SHORT-TIME COMPENSATION AGREEMENTS.

(a) Federal-State Agreements.--
(1) In general.--Any State which desires to do so may enter
into, and participate in, an agreement under this section with
the Secretary provided that such State's law does not provide
for the payment of short-time compensation under a short-time
compensation program (as defined in section 3306(v) of the
Internal Revenue Code of 1986, as added by section 2161(a)).
(2) <>  Ability to terminate.--Any State
which is a party to an agreement under this section may, upon
providing 30 days' written notice to the Secretary, terminate
such agreement.

(b) Provisions of Federal-State Agreement.--
(1) In general.--Any agreement under this section shall
provide that the State agency of the State will make payments of
short-time compensation under a plan approved by the State. Such
plan shall provide that payments are made in accordance with the
requirements under section 3306(v) of the Internal Revenue Code
of 1986, as added by section 2161(a).
(2) Limitations on plans.--
(A) General payment limitations.--A short-time
compensation plan approved by a State shall not permit
the payment of short-time compensation to an individual
by the State during a benefit year in excess of 26 times
the amount of regular compensation (including
dependents' allowances) under the State law payable to
such individual for a week of total unemployment.
(B) Employer limitations.--A short-time compensation
plan approved by a State shall not provide payments to
an individual if such individual is employed by the
participating employer on a seasonal, temporary, or
intermittent basis.
(3) Employer payment of costs.--Any short-time compensation
plan entered into by an employer must provide that the employer
will pay the State an amount equal to one-half of the amount of
short-time compensation paid under such plan. Such amount shall
be deposited in the State's unemployment fund and shall not be
used for purposes of calculating

[[Page 175]]

an employer's contribution rate under section 3303(a)(1) of the
Internal Revenue Code of 1986.

(c) Payments to States.--
(1) In general.--There shall be paid to each State with an
agreement under this section an amount equal to--
(A) one-half of the amount of short-time
compensation paid to individuals by the State pursuant
to such agreement; and
(B) any additional administrative expenses incurred
by the State by reason of such agreement (as determined
by the Secretary).
(2) Terms of payments.--Payments made to a State under
paragraph (1) shall be payable by way of reimbursement in such
amounts as the Secretary estimates the State will be entitled to
receive under this section for each calendar month, reduced or
increased, as the case may be, by any amount by which the
Secretary finds that the Secretary's estimates for any prior
calendar month were greater or less than the amounts which
should have been paid to the State. Such estimates may be made
on the basis of such statistical, sampling, or other method as
may be agreed upon by the Secretary and the State agency of the
State involved.
(3) <>  Funding.--There
are appropriated, out of moneys in the Treasury not otherwise
appropriated, such sums as may be necessary for purposes of
carrying out this section.
(4) Certifications.--The Secretary shall from time to time
certify to the Secretary of the Treasury for payment to each
State the sums payable to such State under this section.

(d) Applicability.--
(1) In general.--An agreement entered into under this
section shall apply to weeks of unemployment--
(A) <>  beginning on or after
the date on which such agreement is entered into; and
(B) <>  ending on or before
the date that is 2 years and 13 weeks after the date of
the enactment of this Act.
(2) Two-year funding limitation.--States may receive
payments under this section with respect to a total of not more
than 104 weeks.

(e) Special Rule.--If a State has entered into an agreement under
this section and subsequently enacts a State law providing for the
payment of short-time compensation under a short-time compensation
program that meets the definition of such a program under section
3306(v) of the Internal Revenue Code of 1986, as added by section
2161(a), the State--
(1) shall not be eligible for payments under this section
for weeks of unemployment beginning after the effective date of
such State law; and
(2) subject to paragraphs (1)(B) and (2) of section 2162(b),
shall be eligible to receive payments under section 2162 after
the effective date of such State law.

(f) Definitions.--In this section:
(1) Secretary.--The term ``Secretary'' means the Secretary
of Labor.
(2) State; state agency; state law.--The terms ``State'',
``State agency'', and ``State law'' have the meanings given
those terms in section 205 of the Federal-State Extended
Unemployment Compensation Act of 1970 (26 U.S.C. 3304 note).

[[Page 176]]

SEC. 2164. <>  GRANTS FOR SHORT-TIME
COMPENSATION PROGRAMS.

(a) Grants.--
(1) For implementation or improved administration.--The
Secretary shall award grants to States that enact short-time
compensation programs (as defined in subsection (i)(2)) for the
purpose of implementation or improved administration of such
programs.
(2) For promotion and enrollment.--The Secretary shall award
grants to States that are eligible and submit plans for a grant
under paragraph (1) for such States to promote and enroll
employers in short-time compensation programs (as so defined).
(3) Eligibility.--
(A) In general.--The Secretary shall determine
eligibility criteria for the grants under paragraphs (1)
and (2).
(B) Clarification.--A State administering a short-
time compensation program, including a program being
administered by a State that is participating in the
transition under the provisions of sections 301(a)(3)
and 302(c), that does not meet the definition of a
short-time compensation program under section 3306(v) of
the Internal Revenue Code of 1986 (as added by 211(a)),
and a State with an agreement under section 2163, shall
not be eligible to receive a grant under this section
until such time as the State law of the State provides
for payments under a short-time compensation program
that meets such definition and such law.

(b) Amount of Grants.--
(1) In general.--The maximum amount available for making
grants to a State under paragraphs (1) and (2) shall be equal to
the amount obtained by multiplying $100,000,000 (less the amount
used by the Secretary under subsection (e)) by the same ratio as
would apply under subsection (a)(2)(B) of section 903 of the
Social Security Act (42 U.S.C. 1103) for purposes of determining
such State's share of any excess amount (as described in
subsection (a)(1) of such section) that would have been subject
to transfer to State accounts, as of October 1, 2010, under the
provisions of subsection (a) of such section.
(2) Amount available for different grants.--Of the maximum
incentive payment determined under paragraph (1) with respect to
a State--
(A) one-third shall be available for a grant under
subsection (a)(1); and
(B) two-thirds shall be available for a grant under
subsection (a)(2).

(c) Grant Application and Disbursal.--
(1) Application.--Any State seeking a grant under paragraph
(1) or (2) of subsection (a) shall submit an application to the
Secretary at such time, in such manner, and complete with such
information as the Secretary may <> require. In
no case may the Secretary award a grant under this section with
respect to an application that is submitted after December 31,
2014.
(2) <>  Notice.--The Secretary shall,
within 30 days after receiving a complete application, notify
the State agency of

[[Page 177]]

the State of the Secretary's findings with respect to the
requirements for a grant under paragraph (1) or (2) (or both) of
subsection (a).
(3) Certification.--If the Secretary finds that the State
law provisions meet the requirements for a grant under
subsection (a), the Secretary shall thereupon make a
certification to that effect to the Secretary of the Treasury,
together with a certification as to the amount of the grant
payment to be transferred to the State account in the
Unemployment Trust Fund (as established in section 904(a) of the
Social Security Act (42 U.S.C. 1104(a))) pursuant to
that <> finding. The Secretary of the Treasury
shall make the appropriate transfer to the State account within
7 days after receiving such certification.
(4) Requirement.--No certification of compliance with the
requirements for a grant under paragraph (1) or (2) of
subsection (a) may be made with respect to any State whose--
(A) State law is not otherwise eligible for
certification under section 303 of the Social Security
Act (42 U.S.C. 503) or approvable under section 3304 of
the Internal Revenue Code of 1986; or
(B) <>  short-time compensation
program is subject to discontinuation or is not
scheduled to take effect within 12 months of the
certification.

(d) Use of Funds.--The amount of any grant awarded under this
section shall be used for the implementation of short-time compensation
programs and the overall administration of such programs and the
promotion and enrollment efforts associated with such programs, such as
through--
(1) the creation or support of rapid response teams to
advise employers about alternatives to layoffs;
(2) the provision of education or assistance to employers to
enable them to assess the feasibility of participating in short-
time compensation programs; and
(3) the development or enhancement of systems to automate--
(A) the submission and approval of plans; and
(B) the filing and approval of new and ongoing
short-time compensation claims.

(e) Administration.--The Secretary is authorized to use 0.25 percent
of the funds available under subsection (g) to provide for outreach and
to share best practices with respect to this section and short-time
compensation programs.
(f) <>  Recoupment.--The
Secretary shall establish a process under which the Secretary shall
recoup the amount of any grant awarded under paragraph (1) or (2) of
subsection (a) if the Secretary determines that, during the 5-year
period beginning on the first date that any such grant is awarded to the
State, the State--
(1) terminated the State's short-time compensation program;
or
(2) failed to meet appropriate requirements with respect to
such program (as established by the Secretary).

(g) <>  Funding.--There are
appropriated, out of moneys in the Treasury not otherwise appropriated,
to the Secretary, $100,000,000 to carry out this section, to remain
available without fiscal year limitation.

[[Page 178]]

(h) Reporting.--The Secretary may establish reporting requirements
for States receiving a grant under this section in order to provide
oversight of grant funds.
(i) Definitions.--In this section:
(1) Secretary.--The term ``Secretary'' means the Secretary
of Labor.
(2) Short-time compensation program.--The term ``short-time
compensation program'' has the meaning given such term in
section 3306(v) of the Internal Revenue Code of 1986, as added
by section 2161(a).
(3) State; state agency; state law.--The terms ``State'',
``State agency'', and ``State law'' have the meanings given
those terms in section 205 of the Federal-State Extended
Unemployment Compensation Act of 1970 (26 U.S.C. 3304 note).
SEC. 2165. <>  ASSISTANCE AND GUIDANCE IN
IMPLEMENTING PROGRAMS.

(a) In General.--In order to assist States in establishing,
qualifying, and implementing short-time compensation programs (as
defined in section 3306(v) of the Internal Revenue Code of 1986, as
added by section 2161(a)), the Secretary of Labor (in this section
referred to as the ``Secretary'') shall--
(1) develop model legislative language which may be used by
States in developing and enacting such programs and periodically
review and revise such model legislative language;
(2) provide technical assistance and guidance in developing,
enacting, and implementing such programs;
(3) <>  establish reporting
requirements for States, including reporting on--
(A) the number of estimated averted layoffs;
(B) the number of participating employers and
workers; and
(C) such other items as the Secretary of Labor
determines are appropriate.

(b) Model Language and Guidance.--The model language and guidance
developed under subsection (a) shall allow sufficient flexibility by
States and participating employers while ensuring accountability and
program integrity.
(c) Consultation.--In developing the model legislative language and
guidance under subsection (a), and in order to meet the requirements of
subsection (b), the Secretary shall consult with employers, labor
organizations, State workforce agencies, and other program experts.
SEC. 2166. REPORTS.

(a) Report.--
(1) In general.--Not later than 4 years after the date of
the enactment of this Act, the Secretary of Labor shall submit
to Congress and to the President a report or reports on the
implementation of the provisions of this subtitle.
(2) Requirements.--Any report under paragraph (1) shall at a
minimum include the following:
(A) A description of best practices by States and
employers in the administration, promotion, and use of
short-time compensation programs (as defined in section
3306(v) of the Internal Revenue Code of 1986, as added
by section 2161(a)).

[[Page 179]]

(B) An analysis of the significant challenges to
State enactment and implementation of short-time
compensation programs.
(C) A survey of employers in all States to determine
the level of interest in participating in short-time
compensation programs.

(b) <>  Funding.--There are
appropriated, out of any moneys in the Treasury not otherwise
appropriated, to the Secretary of Labor, $1,500,000 to carry out this
section, to remain available without fiscal year limitation.

Subtitle E--Self-Employment Assistance

SEC. 2181. STATE ADMINISTRATION OF SELF-EMPLOYMENT ASSISTANCE
PROGRAMS.

(a) Availability for Individuals Receiving Extended Compensation.--
Title II of the Federal-State Extended Unemployment Compensation Act of
1970 (26 U.S.C. 3304 note) is amended by inserting at the end the
following new section:


``authority to conduct self-employment assistance programs


``Sec. 208.  (a)(1) At the option of a State, for any weeks of
unemployment beginning after the date of enactment of this section, the
State agency of the State may establish a self-employment assistance
program, as described in subsection (b), to provide for the payment of
extended compensation as self-employment assistance allowances to
individuals who would otherwise satisfy the eligibility criteria under
this title.
``(2) Subject to paragraph (3), the self-employment assistance
allowance described in paragraph (1) shall be paid to an eligible
individual from such individual's extended compensation account, as
described in section 202(b), and the amount in such account shall be
reduced accordingly.
``(3)(A) Subject to subparagraph (B), for purposes of self-
employment assistance programs established under this section and
section 4001(j) of the Supplemental Appropriations Act, 2008, an
individual shall be provided with self-employment assistance allowances
under such programs for a total of not greater than 26 weeks (referred
to in this section as the `combined eligibility limit').
``(B) For purposes of an individual who is participating in a self-
employment assistance program established under this section and has not
reached the combined eligibility limit as of the date on which such
individual exhausts all rights to extended compensation under this
title, the individual shall be eligible to receive self-employment
assistance allowances under a self-employment assistance program
established under section 4001(j) of the Supplemental Appropriations
Act, 2008, until such individual has reached the combined eligibility
limit, provided that the individual otherwise satisfies the eligibility
criteria described under title IV of such Act.
``(b) For the purposes of this section, the term `self-employment
assistance program' means a program as defined under section 3306(t) of
the Internal Revenue Code of 1986, except as follows:
``(1) all references to `regular unemployment compensation
under the State law' shall be deemed to refer instead to

[[Page 180]]

`extended compensation under title II of the Federal-State
Extended Unemployment Compensation Act of 1970';
``(2) paragraph (3)(B) shall not apply;
``(3) clause (i) of paragraph (3)(C) shall be deemed to
state as follows:
`` `(i) include any entrepreneurial training
that the State or non-profit organizations may
provide in coordination with programs of training
offered by the Small Business Administration,
which may include business counseling, mentorship
for participants, access to small business
development resources, and technical assistance;
and';
``(4) the reference to `5 percent' in paragraph (4) shall be
deemed to refer instead to `1 percent'; and
``(5) paragraph (5) shall not apply.

``(c) In the case of an individual who is eligible to receive
extended compensation under this title, such individual shall not
receive self-employment assistance allowances under this section unless
the State agency has a reasonable expectation that such individual will
be entitled to at least 13 times the individual's average weekly benefit
amount of extended compensation and emergency unemployment compensation.
``(d)(1) An individual who is participating in a self-employment
assistance program established under this section may elect to
discontinue participation in such program at any time.
``(2) For purposes of an individual whose participation in a self-
employment assistance program established under this section is
terminated pursuant to subsection (a)(3) or who has discontinued
participation in such program, if the individual continues to satisfy
the eligibility requirements for extended compensation under this title,
the individual shall receive extended compensation payments with respect
to subsequent weeks of unemployment, to the extent that amounts remain
in the account established for such individual under section 202(b).''.
(b) Availability for Individuals Receiving Emergency Unemployment
Compensation.--Section 4001 of the Supplemental Appropriations Act, 2008
(Public Law 110-252; 26 U.S.C. 3304 note), as amended by sections
2141(b) and 2142(a), is further amended by inserting at the end the
following new subsection:
``(j) Authority to Conduct Self-employment Assistance Program.--
``(1) In general.--
``(A) Establishment.--Any agreement under subsection
(a) may provide that the State agency of the State shall
establish a self-employment assistance program, as
described in paragraph (2), to provide for the payment
of emergency unemployment compensation as self-
employment assistance allowances to individuals who
would otherwise satisfy the eligibility criteria
specified in subsection (b).
``(B) Payment of allowances.--Subject to
subparagraph (C), the self-employment assistance
allowance described in subparagraph (A) shall be paid to
an eligible individual from such individual's emergency
unemployment compensation account, as described in
section 4002, and the amount in such account shall be
reduced accordingly.

[[Page 181]]

``(C) Limitation on self-employment assistance for
individuals receiving extended compensation and
emergency unemployment compensation.--
``(i) Combined eligibility limit.--Subject to
clause (ii), for purposes of self-employment
assistance programs established under this
subsection and section 208 of the Federal-State
Extended Unemployment Compensation Act of 1970, an
individual shall be provided with self-employment
assistance allowances under such programs for a
total of not greater than 26 weeks (referred to in
this subsection as the `combined eligibility
limit').
``(ii) Carryover rule.--For purposes of an
individual who is participating in a self-
employment assistance program established under
this subsection and has not reached the combined
eligibility limit as of the date on which such
individual exhausts all rights to extended
compensation under this title, the individual
shall be eligible to receive self-employment
assistance allowances under a self-employment
assistance program established under section 208
of the Federal-State Extended Unemployment
Compensation Act of 1970 until such individual has
reached the combined eligibility limit, provided
that the individual otherwise satisfies the
eligibility criteria described under title II of
such Act.
``(2) Definition of `self-employment assistance program'.--
For the purposes of this section, the term `self-employment
assistance program' means a program as defined under section
3306(t) of the Internal Revenue Code of 1986, except as follows:
``(A) all references to `regular unemployment
compensation under the State law' shall be deemed to
refer instead to `emergency unemployment compensation
under title IV of the Supplemental Appropriations Act,
2008';
``(B) paragraph (3)(B) shall not apply;
``(C) clause (i) of paragraph (3)(C) shall be deemed
to state as follows:
`` `(i) include any entrepreneurial training
that the State or non-profit organizations may
provide in coordination with programs of training
offered by the Small Business Administration,
which may include business counseling, mentorship
for participants, access to small business
development resources, and technical assistance;
and';
``(D) the reference to `5 percent' in paragraph (4)
shall be deemed to refer instead to `1 percent'; and
``(E) paragraph (5) shall not apply.
``(3) Availability of self-employment assistance
allowances.--In the case of an individual who is eligible to
receive emergency unemployment compensation payment under this
title, such individual shall not receive self-employment
assistance allowances under this subsection unless the State
agency has a reasonable expectation that such individual will be
entitled to at least 13 times the individual's average weekly
benefit amount of extended compensation and emergency
unemployment compensation.

[[Page 182]]

``(4) Participant option to terminate participation in self-
employment assistance program.--
``(A) Termination.--An individual who is
participating in a self-employment assistance program
established under this subsection may elect to
discontinue participation in such program at any time.
``(B) Continued eligibility for emergency
unemployment compensation.--For purposes of an
individual whose participation in the self-employment
assistance program established under this subsection is
terminated pursuant to paragraph (1)(C) or who has
discontinued participation in such program, if the
individual continues to satisfy the eligibility
requirements for emergency unemployment compensation
under this title, the individual shall receive emergency
unemployment compensation payments with respect to
subsequent weeks of unemployment, to the extent that
amounts remain in the account established for such
individual under section 4002(b) or to the extent that
such individual commences receiving the amounts
described in subsections (c), (d), or (e) of such
section, respectively.''.
SEC. 2182. <>  GRANTS FOR SELF-EMPLOYMENT
ASSISTANCE PROGRAMS.

(a) In General.--
(1) Establishment or improved administration.--Subject to
the requirements established under subsection (b), the Secretary
shall award grants to States for the purposes of--
(A) improved administration of self-employment
assistance programs that have been established, prior to
the date of the enactment of this Act, pursuant to
section 3306(t) of the Internal Revenue Code of 1986 (26
U.S.C. 3306(t)), for individuals who are eligible to
receive regular unemployment compensation;
(B) development, implementation, and administration
of self-employment assistance programs that are
established, subsequent to the date of the enactment of
this Act, pursuant to section 3306(t) of the Internal
Revenue Code of 1986, for individuals who are eligible
to receive regular unemployment compensation; and
(C) development, implementation, and administration
of self-employment assistance programs that are
established pursuant to section 208 of the Federal-State
Extended Unemployment Compensation Act of 1970 or
section 4001(j) of the Supplemental Appropriations Act,
2008, for individuals who are eligible to receive
extended compensation or emergency unemployment
compensation.
(2) Promotion and enrollment.--Subject to the requirements
established under subsection (b), the Secretary shall award
additional grants to States that submit approved applications
for a grant under paragraph (1) for such States to promote self-
employment assistance programs and enroll unemployed individuals
in such programs.

(b) Application and Disbursal.--
(1) Application.--Any State seeking a grant under paragraph
(1) or (2) of subsection (a) shall submit an application to the
Secretary at such time, in such manner, and containing such
information as is determined appropriate by the Secretary.

[[Page 183]]

In no <> case shall the Secretary award a grant
under this section with respect to an application that is
submitted after December 31, 2013.
(2) Notice.--Not <> later than 30 days
after receiving an application described in paragraph (1) from a
State, the Secretary shall notify the State agency as to whether
a grant has been approved for such State for the purposes
described in subsection (a).
(3) <>  Certification.--If the
Secretary determines that a State has met the requirements for a
grant under subsection (a), the Secretary shall make a
certification to that effect to the Secretary of the Treasury,
as well as a certification as to the amount of the grant payment
to be transferred to the State account in the Unemployment Trust
Fund under section 904 of the Social Security Act (42 U.S.C.
1104). <> The Secretary of
the Treasury shall make the appropriate transfer to the State
account not later than 7 days after receiving such
certification.

(c) Allotment Factors.--For <> purposes of
allotting the funds available under subsection (d) to States that have
met the requirements for a grant under this section, the amount of the
grant provided to each State shall be determined based upon the
percentage of unemployed individuals in the State relative to the
percentage of unemployed individuals in all States.

(d) <>  Funding.--There are
appropriated, out of moneys in the Treasury not otherwise appropriated,
$35,000,000 for the period of fiscal year 2012 through fiscal year 2013
for purposes of carrying out the grant program under this section,
SEC. 2183. <>  ASSISTANCE AND GUIDANCE IN
IMPLEMENTING SELF-EMPLOYMENT ASSISTANCE
PROGRAMS.

(a) Model Language and Guidance.--For purposes of assisting States
in establishing, improving, and administering self-employment assistance
programs, the Secretary shall--
(1) <>  develop model language that may be
used by States in enacting such programs, as well as
periodically review and revise such model language; and
(2) provide technical assistance and guidance in
establishing, improving, and administering such programs.

(b) Reporting and Evaluation.--
(1) Reporting.--The Secretary shall establish reporting
requirements for States that have established self-employment
assistance programs, which shall include reporting on--
(A) the total number of individuals who received
unemployment compensation and--
(i) were referred to a self-employment
assistance program;
(ii) participated in such program; and
(iii) received an allowance under such
program;
(B) the total amount of allowances provided to
individuals participating in a self-employment
assistance program;
(C) the total income (as determined by survey or
other appropriate method) for businesses that have been
established by individuals participating in a self-
employment assistance program, as well as the total
number of individuals employed through such businesses;
and

[[Page 184]]

(D) any additional information, as determined
appropriate by the Secretary.
(2) <>  Evaluation.--Not later than 5 years
after the date of the enactment of this Act, the Secretary shall
submit to Congress a report that evaluates the effectiveness of
self-employment assistance programs established by States,
including--
(A) an analysis of the implementation and operation
of self-employment assistance programs by States;
(B) an evaluation of the economic outcomes for
individuals who participated in a self-employment
assistance program as compared to individuals who
received unemployment compensation and did not
participate in a self-employment assistance program,
including a comparison as to employment status, income,
and duration of receipt of unemployment compensation or
self-employment assistance allowances; and
(C) an evaluation of the state of the businesses
started by individuals who participated in a self-
employment assistance program, including information
regarding--
(i) the type of businesses established;
(ii) the sustainability of the businesses;
(iii) the total income collected by the
businesses;
(iv) the total number of individuals employed
through such businesses; and
(v) the estimated Federal and State tax
revenue collected from such businesses and their
employees.

(c) Flexibility and Accountability.--The model language, guidance,
and reporting requirements developed by the Secretary under subsections
(a) and (b) shall--
(1) allow sufficient flexibility for States and
participating individuals; and
(2) ensure accountability and program integrity.

(d) Consultation.--For purposes of developing the model language,
guidance, and reporting requirements described under subsections (a) and
(b), the Secretary shall consult with employers, labor organizations,
State agencies, and other relevant program experts.
(e) Entrepreneurial Training Programs.--The Secretary shall utilize
resources available through the Department of Labor and coordinate with
the Administrator of the Small Business Administration to ensure that
adequate funding is reserved and made available for the provision of
entrepreneurial training to individuals participating in self-employment
assistance programs.
(f) Self-employment Assistance Program.--
For <> purposes of this section, the term ``self-
employment assistance program'' means a program established pursuant to
section 3306(t) of the Internal Revenue Code of 1986 (26 U.S.C.
3306(t)), section 208 of the Federal-State Extended Unemployment
Compensation Act of 1970, or section 4001(j) of the Supplemental
Appropriations Act, 2008, for individuals who are eligible to receive
regular unemployment compensation, extended compensation, or emergency
unemployment compensation.
SEC. 2184. <>  DEFINITIONS.

In this subtitle:

[[Page 185]]

(1) Secretary.--The term ``Secretary'' means the Secretary
of Labor.
(2) State; state agency.--The terms ``State'' and ``State
agency'' have the meanings given such terms under section 205 of
the Federal-State Extended Unemployment Compensation Act of 1970
(26 U.S.C. 3304 note).

TITLE III--MEDICARE AND OTHER HEALTH PROVISIONS

Subtitle A--Medicare Extensions

SEC. 3001. EXTENSION OF MMA SECTION 508 RECLASSIFICATIONS.

(a) In General.--Section 106(a) of division B of the Tax Relief and
Health Care Act of 2006 (42 U.S.C. 1395 note), <> as amended by section 117 of the Medicare, Medicaid, and SCHIP
Extension Act of 2007 (Public Law 110-173), section 124 of the Medicare
Improvements for Patients and Providers Act of 2008 (Public Law 110-
275), sections 3137(a) and 10317 of the Patient Protection and
Affordable Care Act (Public Law 111-148), section 102(a) of the Medicare
and Medicaid Extenders Act of 2010 (Public Law 111-309), and section
302(a) of the Temporary Payroll Tax Cut Continuation Act of 2011 (Public
Law 112-78), is amended by striking ``November 30, 2011'' and inserting
``March 31, 2012''.

(b) <>  Special Rule.--
(1) In general.--Subject to paragraph (2), for purposes of
implementation of the amendment made by subsection (a),
including for purposes of the implementation of paragraph (2) of
section 117(a) of the Medicare, Medicaid, and SCHIP Extension
Act of 2007 (Public Law 110-173), for the period beginning on
December 1, 2011, and ending on March 31, 2012, the Secretary of
Health and Human Services shall use the hospital wage index that
was promulgated by the Secretary of Health and Human Services in
the Federal Register on August 18, 2011 (76 Fed. Reg. 51476),
and any subsequent corrections.
(2) Exception.--In determining the wage index applicable to
hospitals that qualify for wage index reclassification, the
Secretary shall, for the period described in paragraph (1),
include the average hourly wage data of hospitals whose
reclassification was extended pursuant to the amendment made by
subsection (a) only if including such data results in a higher
applicable reclassified wage index. Any revision to hospital
wage indexes made as a result of this paragraph shall not be
effected in a budget neutral manner.

(c) <>  Timeframe for Payments.--
(1) In general.--The Secretary shall make payments required
under subsections (a) and (b) by not later than June 30, 2012.
(2) October 2011 and november 2011 conforming change.--
Section 302(c) of the Temporary Payroll Tax Cut Continuation Act
of 2011 (Public Law 112-78) <> is
amended by striking ``December 31, 2012'' and inserting ``June
30, 2012''.

[[Page 186]]

SEC. 3002. EXTENSION OF OUTPATIENT HOLD HARMLESS PAYMENTS.

(a) In General.--Section 1833(t)(7)(D)(i) of the Social Security Act
(42 U.S.C. 1395l(t)(7)(D)(i)), as amended by section 308 of the
Temporary Payroll Tax Cut Continuation Act of 2011 (Public Law 112-78),
is amended--
(1) in subclause (II)--
(A) in the first sentence, by striking ``March 1,
2012'' and inserting ``January 1, 2013''; and
(B) in the second sentence, by striking ``or the
first two months of 2012'' and inserting ``or 2012'';
and
(2) in subclause (III), in the first sentence, by striking
``March 1, 2012'' and inserting ``January 1, 2013''.

(b) Report.--Not later than July 1, 2012, the Secretary of Health
and Human Services shall submit to the Committees on Ways and Means and
Energy and Commerce of the House of Representatives and the Committee on
Finance of the Senate a report including recommendations for which types
of hospitals should continue to receive hold harmless payments described
in subclauses (II) and (III) of section 1833(t)(7)(D)(i) of the Social
Security Act (42 U.S.C. 1395l(t)(7)(D)(i)) in order to maintain adequate
beneficiary access to outpatient services. In conducting such report,
the Secretary should examine why some similarly situated hospitals do
not receive such hold harmless payments and are able to rely only on the
prospective payment system for hospital outpatient department services
under section 1833(t) of the Social Security Act (42 U.S.C. 1395l(t)).
SEC. 3003. PHYSICIAN PAYMENT UPDATE.

(a) In General.--Section 1848(d)(13) of the Social Security Act (42
U.S.C. 1395w-4(d)(13)), as added by section 301 of the Temporary Payroll
Tax Cut Continuation Act of 2011 (Public Law 112-78), is amended--
(1) in the heading, by striking ``first two months of 2012''
and inserting ``2012'';
(2) in subparagraph (A), by striking ``the period beginning
on January 1, 2012, and ending on February 29, 2012'' and
inserting ``2012'';
(3) in the heading of subparagraph (B), by striking
``remaining portion of 2012'' and inserting ``2013''; and
(4) in subparagraph (B), by striking ``for the period
beginning on March 1, 2012, and ending on December 31, 2012, and
for 2013'' and inserting ``for 2013''.

(b) Mandated Studies on Physician Payment Reform.--
(1) Study by secretary on options for bundled or episode-
based payment.--
(A) In general.--The Secretary of Health and Human
Services shall conduct a study that examines options for
bundled or episode-based payments, to cover physicians'
services currently paid under the physician fee schedule
under section 1848 of the Social Security Act (42 U.S.C.
1395w-4), for one or more prevalent chronic conditions
(such as cancer, diabetes, and congestive heart failure)
or episodes of care for one or more major procedures
(such as medical device
implantation). <> In conducting the
study, the Secretary shall consult with medical
professional societies and other relevant stakeholders.
The study shall

[[Page 187]]

include an examination of related private payer payment
initiatives.
(B) Report.--Not later than January 1, 2013, the
Secretary shall submit to the Committees on Ways and
Means and Energy and Commerce of the House of
Representatives and the Committee on Finance of the
Senate a report on the study conducted under this
paragraph. The Secretary shall include in the report
recommendations on suitable alternative payment options
for services paid under such fee schedule and on
associated implementation requirements (such as
timelines, operational issues, and interactions with
other payment reform initiatives).
(2) GAO study of private payer initiatives.--
(A) In general.--The Comptroller General of the
United States shall conduct a study that examines
initiatives of private entities offering or
administering health insurance coverage, group health
plans, or other private health benefit plans to base or
adjust physician payment rates under such coverage or
plans for performance on quality and efficiency, as well
as demonstration of care delivery improvement activities
(such as adherence to evidence-based guidelines and
patient-shared decision making
programs). <> In conducting such
study, the Comptroller General shall consult, to the
extent appropriate, with medical professional societies
and other relevant stakeholders.
(B) Report.--Not later than January 1, 2013, the
Comptroller General shall submit to the Committees on
Ways and Means and Energy and Commerce of the House of
Representatives and the Committee on Finance of the
Senate a report on the study conducted under this
paragraph. Such report shall include an assessment of
the applicability of the payer initiatives described in
subparagraph (A) to the Medicare program and
recommendations on modifications to existing Medicare
performance-based initiatives.
SEC. 3004. WORK GEOGRAPHIC ADJUSTMENT.

(a) In General.--Section 1848(e)(1)(E) of the Social Security Act
(42 U.S.C. 1395w-4(e)(1)(E)), as amended by section 303 of the Temporary
Payroll Tax Cut Continuation Act of 2011 (Public Law 112-78), is amended
by striking ``before March 1, 2012'' and inserting ``before January 1,
2013''.
(b) Report.--Not later than June 15, 2013, the Medicare Payment
Advisory Commission shall submit to the Committees on Ways and Means and
Energy and Commerce of the House of Representatives and the Committee on
Finance of the Senate a report that assesses whether any adjustment
under section 1848 of the Social Security Act (42 U.S.C. 1395w-4) to
distinguish the difference in work effort by geographic area is
appropriate and, if so, what that level should be and where it should be
applied. The report shall also assess the impact of the work geographic
adjustment under such section, including the extent to which the floor
on such adjustment impacts access to care.
SEC. 3005. PAYMENT FOR OUTPATIENT THERAPY SERVICES.

(a) Application of Additional Requirements.--Section 1833(g)(5) of
the Social Security Act (42 U.S.C. 1395l(g)(5)), as

[[Page 188]]

amended by section 304 of the Temporary Payroll Tax Cut Continuation Act
of 2011 (Public Law 112-78), is amended--
(1) by inserting ``(A)'' after ``(5)'';
(2) in the first sentence, by striking ``February 29, 2012''
and inserting ``December 31, 2012'';
(3) in the first sentence, by inserting ``and if the
requirement of subparagraph (B) is met'' after ``medically
necessary'';
(4) in the second sentence, by inserting ``made in
accordance with such requirement'' after ``receipt of the
request''; and
(5) by adding at the end the following new subparagraphs:

``(B) In the case of outpatient therapy services for which an
exception is requested under the first sentence of subparagraph (A), the
claim for such services shall contain an appropriate modifier (such as
the KX modifier used as of the date of the enactment of this
subparagraph) indicating that such services are medically necessary as
justified by appropriate documentation in the medical record involved.
``(C)(i) <>  In applying
this paragraph with respect to a request for an exception with respect
to expenses that would be incurred for outpatient therapy services
(including services described in subsection (a)(8)(B)) that would exceed
the threshold described in clause (ii) for a year, the request for such
an exception, for services furnished on or after October 1, 2012, shall
be subject to a manual medical review process that is similar to the
manual medical review process used for certain exceptions under this
paragraph in 2006.

``(ii) The threshold under this clause for a year is $3,700. Such
threshold shall be applied separately--
``(I) for physical therapy services and speech-language
pathology services; and
``(II) for occupational therapy services.''.

(b) Temporary Application of Therapy Cap to Therapy Furnished as
Part of Hospital Outpatient Services.--Section 1833(g) of such Act (42
U.S.C. 1395l(g)) is amended--
(1) in each of paragraphs (1) and (3), by striking ``but not
described in section 1833(a)(8)(B)'' and inserting ``but (except
as provided in paragraph (6)) not described in subsection
(a)(8)(B)''; and
(2) by adding at the end the following new paragraph:

``(6) <>  In applying paragraphs
(1) and (3) to services furnished during the period beginning not later
than October 1, 2012, and ending on December 31, 2012, the exclusion of
services described in subsection (a)(8)(B) from the uniform dollar
limitation specified in paragraph (2) shall not apply to such services
furnished during 2012.''.

(c) Requirement for Inclusion on Claims of NPI of Physician Who
Reviews Therapy Plan.--Section 1842(t) of such Act (42 U.S.C. 1395u(t))
is amended--
(1) by inserting ``(1)'' after ``(t)''; and
(2) by adding at the end the following new paragraph:

``(2) <>  Each request for payment, or bill
submitted, for therapy services described in paragraph (1) or (3) of
section 1833(g), including services described in section 1833(a)(8)(B),
furnished on or after October 1, 2012, for which payment may be made
under this part shall include the national provider identifier of the
physician who periodically reviews the plan for such services under
section 1861(p)(2).''.

[[Page 189]]

(d) <>  Implementation.--The Secretary of
Health and Human Services shall implement such claims processing edits
and issue such guidance as may be necessary to implement the amendments
made by this section in a timely manner. Notwithstanding any other
provision of law, the Secretary may implement the amendments made by
this section by program instruction. Of the amount of funds made
available to the Secretary for fiscal year 2012 for program management
for the Centers for Medicare & Medicaid Services, not to exceed
$9,375,000 shall be available for such fiscal year and the first 3
months of fiscal year 2013 to carry out section 1833(g)(5)(C) of the
Social Security Act (relating to manual medical review), as added by
subsection (a).

(e) <>  Effective Date.--The requirement
of subparagraph (B) of section 1833(g)(5) of the Social Security Act (42
U.S.C. 1395l(g)(5)), as added by subsection (a), shall apply to services
furnished on or after March 1, 2012.

(f) MedPAC Report on Improved Medicare Therapy Benefits.--
Not <> later than June 15, 2013, the Medicare Payment
Advisory Commission shall submit to the Committees on Energy and
Commerce and Ways and Means of the House of Representatives and to the
Committee on Finance of the Senate a report making recommendations on
how to improve the outpatient therapy benefit under part B of title
XVIII of the Social Security Act. The report shall include
recommendations on how to reform the payment system for such outpatient
therapy services under such part so that the benefit is better designed
to reflect individual acuity, condition, and therapy needs of the
patient. Such report shall include an examination of private sector
initiatives relating to outpatient therapy benefits.

(g) <>  Collection of
Additional Data.--
(1) Strategy.--The Secretary of Health and Human Services
shall implement, beginning on January 1, 2013, a claims-based
data collection strategy that is designed to assist in reforming
the Medicare payment system for outpatient therapy services
subject to the limitations of section 1833(g) of the Social
Security Act (42 U.S.C. 1395l(g)). Such strategy shall be
designed to provide for the collection of data on patient
function during the course of therapy services in order to
better understand patient condition and outcomes.
(2) Consultation.--In proposing and implementing such
strategy, the Secretary shall consult with relevant
stakeholders.

(h) GAO Report on Manual Medical Review Process Implementation.--Not
later than May 1, 2013, the Comptroller General of the United States
shall submit to the Committees on Energy and Commerce and Ways and Means
of the House of Representatives and to the Committee on Finance of the
Senate a report on the implementation of the manual medical review
process referred to in section 1833(g)(5)(C) of the Social Security Act,
as added by subsection (a). Such report shall include aggregate data on
the number of individuals and claims subject to such process, the number
of reviews conducted under such process, and the outcome of such
reviews.
SEC. 3006. PAYMENT FOR TECHNICAL COMPONENT OF CERTAIN PHYSICIAN
PATHOLOGY SERVICES.

Section 542(c) of the Medicare, Medicaid, and SCHIP Benefits
Improvement and Protection Act of 2000 (as enacted into law by

[[Page 190]]

section 1(a)(6) of Public Law 106-554), as amended by section 732 of the
Medicare Prescription Drug, Improvement, and Modernization Act of 2003
(42 U.S.C. 1395w-4 note), section 104 of division B of the Tax Relief
and Health Care Act of 2006 (42 U.S.C. 1395w-4 note), section 104 of the
Medicare, Medicaid, and SCHIP Extension Act of 2007 (Public Law 110-
173), section 136 of the Medicare Improvements for Patients and
Providers Act of 2008 (Public Law 110-275), section 3104 of the Patient
Protection and Affordable Care Act (Public Law 111-148), section 105 of
the Medicare and Medicaid Extenders Act of 2010 (Public Law 111-309),
and section 305 of the Temporary Payroll Tax Cut Continuation Act of
2011 (Public Law 112-78), <> is amended by
striking ``and the first two months of 2012'' and inserting ``and the
first six months of 2012''.
SEC. 3007. AMBULANCE ADD-ON PAYMENTS.

(a) Ground Ambulance.--Section 1834(l)(13)(A) of the Social Security
Act (42 U.S.C. 1395m(l)(13)(A)), as amended by section 306(a) of the
Temporary Payroll Tax Cut Continuation Act of 2011 (Public Law 112-78),
is amended--
(1) in the matter preceding clause (i), by striking ``March
1, 2012'' and inserting ``January 1, 2013''; and
(2) in each of clauses (i) and (ii), by striking ``March 1,
2012'' and inserting ``January 1, 2013'' each place it appears.

(b) Air Ambulance.--Section 146(b)(1) of the Medicare Improvements
for Patients and Providers Act of 2008 (Public Law 110-275), as amended
by sections 3105(b) and 10311(b) of the Patient Protection and
Affordable Care Act (Public Law 111-148), section 106(b) of the Medicare
and Medicaid Extenders Act of 2010 (Public Law 111-309) and section
306(b) of the Temporary Payroll Tax Cut Continuation Act of 2011 (Public
Law 112-78), <> is amended by striking
``February 29, 2012'' and inserting ``December 31, 2012''.

(c) Super Rural Ambulance.--Section 1834(l)(12)(A) of the Social
Security Act (42 U.S.C. 1395m(l)(12)(A)), as amended by section 306(c)
of Temporary Payroll Tax Cut Continuation Act of 2011 (Public Law 112-
78), is amended in the first sentence by striking ``March 1, 2012'' and
inserting ``January 1, 2013''.
(d) GAO Report Update.--Not later than October 1, 2012, the
Comptroller General of the United States shall update the GAO report
GAO-07-383 (relating to Ambulance Providers: Costs and Expected Medicare
Margins Vary Greatly) to reflect current costs for ambulance providers.
(e) MedPAC Report.--The <> Medicare Payment Advisory
Commission shall conduct a study of--
(1) the appropriateness of the add-on payments for ambulance
providers under paragraphs (12)(A) and (13)(A) of section
1834(l) of the Social Security Act (42 U.S.C. 1395m(l)) and the
treatment of air ambulance providers under section 146(b)(1) of
the Medicare Improvements for Patients and Providers Act of 2008
(Public Law 110-275);
(2) the effect these add-on payments and such treatment have
on the Medicare margins of ambulance providers; and
(3) whether there is a need to reform the Medicare ambulance
fee schedule under such section and, if so, what should such
reforms be, including whether the add-on payments should be
included in the base rate.

[[Page 191]]

Not later than June 15, 2013, the Commission shall submit to the
Committees on Ways and Means and Energy and Commerce of the House of
Representatives and the Committee on Finance of the Senate a report on
such study and shall include in the report such recommendations as the
Commission deems appropriate.

Subtitle B--Other Health Provisions

SEC. 3101. QUALIFYING INDIVIDUAL PROGRAM.

(a) Extension.--Section 1902(a)(10)(E)(iv) of the Social Security
Act (42 U.S.C. 1396a(a)(10)(E)(iv)), as amended by section 310(a) of the
Temporary Payroll Tax Cut Continuation Act of 2011 (Public Law 112-78),
is amended by striking ``February'' and inserting ``December''.
(b) Extending Total Amount Available for Allocation.--Section
1933(g) of such Act (42 U.S.C. 1396u-3(g)), as amended by section 310(b)
of the Temporary Payroll Tax Cut Continuation Act of 2011 (Public Law
112-78), is amended--
(1) in paragraph (2)--
(A) in subparagraph (P), by striking ``and'' after
the semicolon;
(B) in subparagraph (Q), by striking ``February 29,
2012, the total allocation amount is $150,000,000.'' and
inserting ``September 30, 2012, the total allocation
amount is $450,000,000; and''; and
(C) by adding at the end the following new
subparagraph:
``(R) <>  for the period that
begins on October 1, 2012, and ends on December 31,
2012, the total allocation amount is $280,000,000.'';
and
(2) in paragraph (3), in the matter preceding subparagraph
(A), by striking ``or (P)'' and inserting ``(P), or (R)''.
SEC. 3102. TRANSITIONAL MEDICAL ASSISTANCE.

Sections 1902(e)(1)(B) and 1925(f) of the Social Security Act (42
U.S.C. 1396a(e)(1)(B), 1396r-6(f)), as amended by section 311 of the
Temporary Payroll Tax Cut Continuation Act of 2011 (Public Law 112-78),
are each amended by striking ``February 29'' and inserting ``December
31''.

Subtitle C--Health Offsets

SEC. 3201. REDUCTION OF BAD DEBT TREATED AS AN ALLOWABLE COST.

(a) Hospitals.--Section 1861(v)(1)(T) of the Social Security Act (42
U.S.C. 1395x(v)(1)(T)) is amended--
(1) in clause (iii), by striking ``and'' at the end;
(2) in clause (iv)--
(A) by striking ``a subsequent fiscal year'' and
inserting ``fiscal years 2001 through 2012''; and
(B) by striking the period at the end and inserting
``, and''; and
(3) by adding at the end the following:

[[Page 192]]

``(v) for cost reporting periods beginning during fiscal
year 2013 or a subsequent fiscal year, by 35 percent of such
amount otherwise allowable.''.

(b) <>  Skilled Nursing Facilities.--Section
1861(v)(1)(V) of such Act (42 U.S.C. 1395x(v)(1)(V)) is amended--
(1) in the matter preceding clause (i), by striking ``with
respect to cost reporting periods beginning on or after October
1, 2005'' and inserting ``and (beginning with respect to cost
reporting periods beginning during fiscal year 2013) for covered
skilled nursing services described in section 1888(e)(2)(A)
furnished by hospital providers of extended care services (as
described in section 1883)'';
(2) in clause (i), by striking ``reduced by'' and all that
follows through ``allowable; and'' and inserting the following:
``reduced by--
``(I) for cost reporting periods beginning on or after
October 1, 2005, but before fiscal year 2013, 30 percent of such
amount otherwise allowable; and
``(II) for cost reporting periods beginning during fiscal
year 2013 or a subsequent fiscal year, by 35 percent of such
amount otherwise allowable.''; and
(3) in clause (ii), by striking ``such section shall not be
reduced.'' and inserting ``such section--
``(I) for cost reporting periods beginning on or after
October 1, 2005, but before fiscal year 2013, shall not be
reduced;
``(II) for cost reporting periods beginning during fiscal
year 2013, shall be reduced by 12 percent of such amount
otherwise allowable;
``(III) for cost reporting periods beginning during fiscal
year 2014, shall be reduced by 24 percent of such amount
otherwise allowable; and
``(IV) for cost reporting periods beginning during a
subsequent fiscal year, shall be reduced by 35 percent of such
amount otherwise allowable.''.

(c) Certain Other Providers.--Section 1861(v)(1) of such Act (42
U.S.C. 1395x(v)(1)) is amended by adding at the end the following new
subparagraph:
``(W)(i) <>  In determining such reasonable
costs for providers described in clause (ii), the amount of bad debts
otherwise treated as allowable costs which are attributable to
deductibles and coinsurance amounts under this title shall be reduced--
``(I) for cost reporting periods beginning during fiscal
year 2013, by 12 percent of such amount otherwise allowable;
``(II) for cost reporting periods beginning during fiscal
year 2014, by 24 percent of such amount otherwise allowable; and
``(III) for cost reporting periods beginning during a
subsequent fiscal year, by 35 percent of such amount otherwise
allowable.

``(ii) A provider described in this clause is a provider of services
not described in subparagraph (T) or (V), a supplier, or any other type
of entity that receives payment for bad debts under the authority under
subparagraph (A).''.
(d) <>  Conforming Amendment for Hospital
Services.--Section 4008(c) of the Omnibus Budget Reconciliation Act
of <> 1987 (42 U.S.C. 1395 note), as amended
by section 8402 of the Technical and Miscellaneous Revenue Act of 1988
and section 6023 of the Omnibus Budget Reconciliation Act of 1989, is
amended by adding at the

[[Page 193]]

end the following new sentence: ``Effective for cost reporting periods
beginning on or after October 1, 2012, the provisions of the previous
two sentences shall not apply.''.
SEC. 3202. REBASE MEDICARE CLINICAL LABORATORY PAYMENT RATES.

Section 1833(h)(2)(A) of the Social Security Act (42 U.S.C.
1395l(h)(2)(A)) is amended--
(1) in clause (i), by striking ``paragraph (4)'' and
inserting ``clause (v), subparagraph (B), and paragraph (4)'';
(2) by moving clause (iv), subclauses (I) and (II) of such
clause, and the flush matter at the end of such clause 6 ems to
the left; and
(3) by adding at the end the following new clause:

``(v) <>  The Secretary shall reduce by 2 percent
the fee schedules otherwise determined under clause (i) for 2013, and
such reduced fee schedules shall serve as the base for 2014 and
subsequent years.''.
SEC. 3203. REBASING STATE DSH ALLOTMENTS FOR FISCAL YEAR 2021.

Section 1923(f) of the Social Security Act (42 U.S.C. 1396r-4(f)) is
amended--
(1) by redesignating paragraph (8) as paragraph (9);
(2) in paragraph (3)(A) by striking ``paragraphs (6) and
(7)'' and inserting ``paragraphs (6), (7), and (8)''; and
(3) by inserting after paragraph (7) the following new
paragraph:
``(8) Rebasing of state dsh allotments for fiscal year
2021.--With <> respect to fiscal year
2021, for purposes of applying paragraph (3)(A) to determine the
DSH allotment for a State, the amount of the DSH allotment for
the State under paragraph (3) for fiscal year 2020 shall be
equal to the DSH allotment as reduced under paragraph (7).''.
SEC. 3204. TECHNICAL CORRECTION TO THE DISASTER RECOVERY FMAP
PROVISION.

(a) In General.--Section 1905(aa) of the Social Security Act (42
U.S.C. 1396d(aa)) is amended--
(1) in paragraph (1)--
(A) in subparagraph (A), by striking ``the Federal
medical assistance percentage determined for the fiscal
year'' and all that follows through the period and
inserting ``the State's regular FMAP shall be increased
by 50 percent of the number of percentage points by
which the State's regular FMAP for such fiscal year is
less than the Federal medical assistance percentage
determined for the State for the preceding fiscal year
after the application of only subsection (a) of section
5001 of Public Law 111-5 (if applicable to the preceding
fiscal year) and without regard to this subsection,
subsections (y) and (z), and subsections (b) and (c) of
section 5001 of Public Law 111-5.''; and
(B) in subparagraph (B), by striking ``Federal
medical assistance percentage determined for the
preceding fiscal year'' and all that follows through the
period and inserting ``State's regular FMAP for such
fiscal year shall be increased by 25 percent of the
number of percentage points by which the State's regular
FMAP for such fiscal year

[[Page 194]]

is less than the Federal medical assistance percentage
received by the State during the preceding fiscal
year.'';
(2) in paragraph (2)--
(A) in subparagraph (A)--
(i) by striking ``Federal medical assistance
percentage determined for the State for the fiscal
year'' and all that follows through ``Act,'' and
inserting ``State's regular FMAP for the fiscal
year''; and
(ii) by striking ``subsection (y)'' and
inserting ``subsections (y) and (z)''; and
(B) in subparagraph (B), by striking ``Federal
medical assistance percentage determined for the State
for the fiscal year'' and all that follows through
``Act,'' and inserting ``State's regular FMAP for the
fiscal year'';
(3) by redesignating paragraph (3) as paragraph (4); and
(4) by inserting after paragraph (2) the following:

``(3) <>  In this subsection, the term `regular
FMAP' means, for each fiscal year for which this subsection applies to a
State, the Federal medical assistance percentage that would otherwise
apply to the State for the fiscal year, as determined under subsection
(b) and without regard to this subsection, subsections (y) and (z), and
section 10202 of the Patient Protection and Affordable Care Act.''.

(b) <>  Effective Date.--The amendments
made by subsection (a) shall take effect on October 1, 2013.
SEC. 3205. PREVENTION AND PUBLIC HEALTH FUND.

Section 4002(b) of the Patient Protection and Affordable Care Act
(42 U.S.C. 300u-11(b)) is amended by striking paragraphs (2) through (6)
and inserting the following:
``(2) for each of fiscal years 2012 through 2017,
$1,000,000,000;
``(3) for each of fiscal years 2018 and 2019,
$1,250,000,000;
``(4) for each of fiscal years 2020 and 2021,
$1,500,000,000; and
``(5) for fiscal year 2022, and each fiscal year thereafter,
$2,000,000,000.''.

TITLE IV--TANF <> EXTENSION
SEC. 4001. SHORT TITLE.

This title may be cited as the ``Welfare Integrity and Data
Improvement Act''.
SEC. 4002. EXTENSION OF PROGRAM.

(a) Family Assistance Grants.--Section 403(a)(1) of the Social
Security Act (42 U.S.C. 603(a)(1)) is amended--
(1) in subparagraph (A), by striking ``each of fiscal years
1996'' and all that follows through ``2003'' and inserting
``fiscal year 2012'';
(2) in subparagraph (B)--
(A) by inserting ``(as in effect just before the
enactment of the Welfare Integrity and Data Improvement
Act)'' after ``this paragraph'' the first place it
appears; and
(B) by inserting ``(as so in effect)'' after ``this
paragraph'' the second place it appears; and

[[Page 195]]

(3) in subparagraph (C), by striking ``2003'' and inserting
``2012''.

(b) Healthy Marriage Promotion and Responsible Fatherhood Grants.--
Section 403(a)(2)(D) of such Act (42 U.S.C. 603(a)(2)(D)) is amended by
striking ``2011'' each place it appears and inserting ``2012''.
(c) Maintenance of Effort Requirement.--Section 409(a)(7) of such
Act (42 U.S.C. 609(a)(7)) is amended--
(1) in subparagraph (A), by striking ``fiscal year'' and all
that follows through ``2013'' and inserting ``a fiscal year'';
and
(2) in subparagraph (B)(ii)--
(A) by striking ``for fiscal years 1997 through
2012,''; and
(B) by striking ``407(a) for the fiscal year,'' and
inserting ``407(a),''.

(d) Tribal Grants.--Section 412(a) of such Act (42 U.S.C. 612(a)) is
amended in each of paragraphs (1)(A) and (2)(A) by striking ``each of
fiscal years 1997'' and all that follows through ``2003'' and inserting
``fiscal year 2012''.
(e) Studies and Demonstrations.--Section 413(h)(1) of such Act (42
U.S.C. 613(h)(1)) is amended by striking ``each of fiscal years 1997
through 2002'' and inserting ``fiscal year 2012''.
(f) Census Bureau Study.--Section 414(b) of such Act (42 U.S.C.
614(b)) is amended by striking ``each of fiscal years 1996'' and all
that follows through ``2003'' and inserting ``fiscal year 2012''.
(g) Child Care Entitlement.--Section 418(a)(3) of such Act (42
U.S.C. 618(a)(3)) is amended by striking ``appropriated'' and all that
follows and inserting ``appropriated $2,917,000,000 for fiscal year
2012.''.
(h) Grants to Territories.--Section 1108(b)(2) of such Act (42
U.S.C. 1308(b)(2)) is amended by striking ``fiscal years 1997 through
2003'' and inserting ``fiscal year 2012''.
(i) Prevention of Duplicate Appropriations for Fiscal Year 2012.--
Expenditures made pursuant to the Short-Term TANF Extension Act (Public
Law 112-35) and the Temporary Payroll Tax Cut Continuation Act of 2011
(Public Law 112-78) for fiscal year 2012 shall be charged to the
applicable appropriation or authorization provided by the amendments
made by this section for such fiscal year.
(j) <>  Effective Date.--This section and
the amendments made by this section shall take effect on the date of the
enactment of this Act.
SEC. 4003. DATA EXCHANGE STANDARDIZATION FOR IMPROVED
INTEROPERABILITY.

(a) In General.--Section 411 of the Social Security Act (42 U.S.C.
611) is amended by adding at the end the following:
``(d) Data Exchange Standardization for Improved Interoperability.--
``(1) Data exchange standards.--
``(A) Designation.--
The <> Secretary, in
consultation with an interagency work group which shall
be established by the Office of Management and Budget,
and considering State and tribal perspectives, shall, by
rule, designate a data exchange standard for any
category of information required to be reported under
this part.

[[Page 196]]

``(B) Data exchange standards must be nonproprietary
and interoperable.--The data exchange standard
designated under subparagraph (A) shall, to the extent
practicable, be nonproprietary and interoperable.
``(C) Other requirements.--In designating data
exchange standards under this section, the Secretary
shall, to the extent practicable, incorporate--
``(i) interoperable standards developed and
maintained by an international voluntary consensus
standards body, as defined by the Office of
Management and Budget, such as the International
Organization for Standardization;
``(ii) interoperable standards developed and
maintained by intergovernmental partnerships, such
as the National Information Exchange Model; and
``(iii) interoperable standards developed and
maintained by Federal entities with authority over
contracting and financial assistance, such as the
Federal Acquisition Regulatory Council.
``(2) Data exchange standards for reporting.--
``(A) <>
Designation.--The Secretary, in consultation with an
interagency work group established by the Office of
Management and Budget, and considering State and tribal
perspectives, shall, by rule, designate data exchange
standards to govern the data reporting required under
this part.
``(B) Requirements.--The data exchange standards
required by subparagraph (A) shall, to the extent
practicable--
``(i) incorporate a widely-accepted,
nonproprietary, searchable, computer-readable
format;
``(ii) be consistent with and implement
applicable accounting principles; and
``(iii) be capable of being continually
upgraded as necessary.
``(C) Incorporation of nonproprietary standards.--In
designating reporting standards under this paragraph,
the Secretary shall, to the extent practicable,
incorporate existing nonproprietary standards, such as
the eXtensible Markup Language.''.

(b) <>  Effective Dates.--
(1) Data exchange standards.--
The <> Secretary of Health and
Human Services shall issue a proposed rule under section
411(d)(1) of the Social Security Act within 12 months after the
date of the enactment of this section, and shall issue a final
rule under such section 411(d)(1), after public comment, within
24 months after such date of enactment.
(2) Data reporting standards.--The reporting standards
required under section 411(d)(2) of such Act shall become
effective with respect to reports required in the first
reporting period, after the effective date of the final rule
referred to in paragraph (1) of this subsection, for which the
authority for data collection and reporting is established or
renewed under the Paperwork Reduction Act.

[[Page 197]]

SEC. 4004. SPENDING POLICIES FOR ASSISTANCE UNDER STATE TANF
PROGRAMS.

(a) State Requirement.--Section 408(a) of the Social Security Act
(42 U.S.C. 608(a)) is amended by adding at the end the following:
``(12) State requirement to prevent unauthorized spending of
benefits.--
``(A) In general.--A State to which a grant is made
under section 403 shall maintain policies and practices
as necessary to prevent assistance provided under the
State program funded under this part from being used in
any electronic benefit transfer transaction in--
``(i) any liquor store;
``(ii) any casino, gambling casino, or gaming
establishment; or
``(iii) any retail establishment which
provides adult-oriented entertainment in which
performers disrobe or perform in an unclothed
state for entertainment.
``(B) Definitions.--For purposes of subparagraph
(A)--
``(i) Liquor store.--The term `liquor store'
means any retail establishment which sells
exclusively or primarily intoxicating liquor. Such
term does not include a grocery store which sells
both intoxicating liquor and groceries including
staple foods (within the meaning of section 3(r)
of the Food and Nutrition Act of 2008 (7 U.S.C.
2012(r))).
``(ii) Casino, gambling casino, or gaming
establishment.--The terms `casino', `gambling
casino', and `gaming establishment' do not
include--
``(I) a grocery store which sells
groceries including such staple foods
and which also offers, or is located
within the same building or complex as,
casino, gambling, or gaming activities;
or
``(II) any other establishment that
offers casino, gambling, or gaming
activities incidental to the principal
purpose of the business.
``(iii) Electronic benefit transfer
transaction.--The term `electronic benefit
transfer transaction' means the use of a credit or
debit card service, automated teller machine,
point-of-sale terminal, or access to an online
system for the withdrawal of funds or the
processing of a payment for merchandise or a
service.''.

(b) Penalty.--Section 409(a) of such Act (42 U.S.C. 609(a)) is
amended by adding at the end the following:
``(16) Penalty for failure to enforce spending policies.--
``(A) In general.--If, within 2 <> years after the date
of the enactment of this paragraph, any State has not
reported to the Secretary on such State's implementation
of the policies and practices required by section
408(a)(12), or the Secretary determines, based on the
information provided in State reports, that any State
has not implemented and maintained such policies and
practices, the Secretary shall reduce, by an amount
equal to 5 percent of the

[[Page 198]]

State family assistance grant, the grant payable to such
State under section 403(a)(1) for--
``(i) the fiscal year immediately succeeding
the year in which such 2-year period ends; and
``(ii) each succeeding fiscal year in which
the State does not demonstrate that such State has
implemented and maintained such policies and
practices.
``(B) Reduction of applicable penalty.--The
Secretary may reduce the amount of the reduction
required under subparagraph (A) based on the degree of
noncompliance of the State.
``(C) State not responsible for individual
violations.--Fraudulent activity by any individual in an
attempt to circumvent the policies and practices
required by section 408(a)(12) shall not trigger a State
penalty under subparagraph (A).''.

(c) Additional State Plan Requirements.--Section 402(a)(1)(A) of
such Act (42 U.S.C. 602(a)(1)(A)) is amended by adding at the end the
following:
``(vii) Implement policies and procedures as
necessary to prevent access to assistance provided
under the State program funded under this part
through any electronic fund transaction in an
automated teller machine or point-of-sale device
located in a place described in section
408(a)(12), including a plan to ensure that
recipients of the assistance have adequate access
to their cash assistance.
``(viii) Ensure that recipients of assistance
provided under the State program funded under this
part have access to using or withdrawing
assistance with minimal fees or charges, including
an opportunity to access assistance with no fee or
charges, and are provided information on
applicable fees and surcharges that apply to
electronic fund transactions involving the
assistance, and that such information is made
publicly available.''.

(d) Conforming Amendment.--Section 409(c)(4) of such Act (42 U.S.C.
609(c)(4)) is amended by striking ``or (13)'' and inserting ``(13), or
(16)''.
SEC. 4005. TECHNICAL CORRECTIONS.

(a) Section 404(d)(1)(A) of the Social Security Act (42 U.S.C.
604(d)(1)(A)) is amended by striking ``subtitle 1 of Title'' and
inserting ``Subtitle A of title''.
(b) Sections 407(c)(2)(A)(i) and 409(a)(3)(C) of such Act (42 U.S.C.
607(c)(2)(A)(i) and 609(a)(3)(C)) are each amended by striking
``403(b)(6)'' and inserting ``403(b)(5)''.
(c) Section 409(a)(2)(A) of such Act (42 U.S.C. 609(a)(2)(A)) is
amended by moving clauses (i) and (ii) 2 ems to the right.
(d) Section 409(c)(2) of such Act (42 U.S.C. 609(c)(2)) is amended
by inserting a comma after ``appropriate''.
(e) Section 411(a)(1)(A)(ii)(III) of such Act (42 U.S.C.
611(a)(1)(A)(ii)(III)) is amended by striking the last close
parenthesis.

[[Page 199]]

TITLE V--FEDERAL EMPLOYEES RETIREMENT

SEC. 5001. INCREASE IN CONTRIBUTIONS TO FEDERAL EMPLOYEES'
RETIREMENT SYSTEM FOR NEW EMPLOYEES.

(a) Definitions.--Section 8401 of title 5, United States Code, is
amended--
(1) in paragraph (35), by striking ``and'' at the end;
(2) in paragraph (36), by striking the period and inserting
``; and''; and
(3) by adding at the end the following:
``(37) the term `revised annuity employee' means any
individual who--
``(A) on December 31, 2012--
``(i) is not an employee or Member covered
under this chapter;
``(ii) is not performing civilian service
which is creditable service under section 8411;
and
``(iii) has less than 5 years of creditable
civilian service under section 8411; and
``(B) after December 31, 2012, becomes employed as
an employee or becomes a Member covered under this
chapter performing service which is creditable service
under section 8411.''.

(b) Increase in Contributions.--Section 8422(a)(3) of title 5,
United States Code, is amended--
(1) by striking ``The applicable percentage under this
paragraph for civilian service'' and inserting ``(A) The
applicable percentage under this paragraph for civilian service
by employees or Members other than revised annuity employees'';
and
(2) by adding at the end the following:

``(B) The applicable percentage under this paragraph for civilian
service by revised annuity employees shall be as follows:



----------------------------------------------------------------------------------------------------------------
``Employee                                          9.3   After December 31, 2012.
Congressional employee                              9.3   After December 31, 2012.
Member                                              9.3   After December 31, 2012.
Law enforcement officer, firefighter,               9.8   After December 31, 2012.
member of the Capitol Police, member of
the Supreme Court Police, or air traffic
controller
Nuclear materials courier                           9.8   After December 31, 2012.
Customs and border protection officer               9.8   After December 31, 2012.''.
----------------------------------------------------------------------------------------------------------------


(c) Reduction in Congressional Annuities.--
(1) In general.--Section 8415 of title 5, United States
Code, is amended--
(A) by redesignating subsections (d) through (m) as
subsections (e) through (n), respectively; and
(B) by inserting after subsection (c) the following:

``(d) Notwithstanding any other provision of law, the annuity of an
individual described in subsection (b) or (c) who is a revised annuity
employee shall be computed in the same manner as in the case of an
individual described in subsection (a).''.
(2) Technical and conforming amendments.--

[[Page 200]]

(A) Section 8422(d)(2) of title 5, United States
Code, is amended by striking ``section 8415(l)'' and
inserting ``section 8415(m)''.
(B) Section 8452(d)(1) of title 5, United States
Code, is amended by striking ``subsection (g)'' and
inserting ``subsection (h)''.
(C) Section 8468(b)(1)(A) of title 5, United States
Code, is amended by striking ``section 8415(a) through
(h)'' and inserting ``section 8415(a) through (i)''.
(D) Section 805(a)(2)(B) of the Foreign Service Act
of 1980 (22 U.S.C. 4045(a)(2)(B)) is amended by striking
``section 8415(d)'' and inserting ``section 8415(e)''.
(E) Section 806(a) of the Foreign Service Act of
1980 (22 U.S.C. 4046(a)) is amended by striking
``section 8415(d)'' each place it appears and inserting
``section 8415(e)''.
(F) Section 855(b) of the Foreign Service Act of
1980 (22 U.S.C. 4071d(b)) is amended--
(i) in paragraph (2)(A), by striking ``section
8415(d)(1)'' and inserting ``section 8415(e)(1)'';
and
(ii) in paragraph (5), by striking ``section
8415(f)(1)'' and inserting ``section 8415(g)(1)''.
(G) Section 303(b)(1) of the Central Intelligence
Agency Retirement Act (50 U.S.C. 2153(b)(1)) is amended
by striking ``section 8415(d)'' and inserting ``section
8415(e)''.
SEC. 5002. FOREIGN SERVICE PENSION SYSTEM.

(a) Definition.--Section 852 of the Foreign Service Act of 1980 (22
U.S.C. 4071a) is amended--
(1) by redesignating paragraphs (7), (8), and (9) as
paragraphs (8), (9), and (10), respectively; and
(2) by inserting after paragraph (6) the following:
``(7) the term `revised annuity participant' means any
individual who--
``(A) on December 31, 2012--
``(i) is not a participant;
``(ii) is not performing service which is
creditable service under section 854; and
``(iii) has less than 5 years creditable
service under section 854; and
``(B) after December 31, 2012, becomes a participant
performing service which is creditable service under
section 854;''.

(b) Deductions and Withholdings From Pay.--Section 856(a)(2) of the
Foreign Service Act of 1980 (22 U.S.C. 4071e(a)(2)) is amended--
(1) by striking ``The applicable percentage under this
subsection'' and inserting ``(A) The applicable percentage for a
participant other than a revised annuity participant''; and
(2) by adding at the end the following:

``(B) The applicable percentage for a revised annuity participant
shall be as follows:


``9.85..............................  After December 31, 2012''.



SEC. 5003. CENTRAL INTELLIGENCE AGENCY RETIREMENT AND DISABILITY
SYSTEM.

Section 211(a) of the Central Intelligence Agency Retirement Act (50
U.S.C. 2021(a)) is amended--

[[Page 201]]

(1) by redesignating paragraph (3) as paragraph (4); and
(2) by striking paragraphs (1) and (2) and inserting the
following:
``(1) Definition.--In this subsection, the term `revised
annuity participant' means an individual who--
``(A) on December 31, 2012--
``(i) is not a participant;
``(ii) is not performing qualifying service;
and
``(iii) has less than 5 years of qualifying
service; and
``(B) after December 31, 2012, becomes a participant
performing qualifying service.
``(2) Contributions.--
``(A) In general.--Except as provided in subsection
(d), 7 percent of the basic pay received by a
participant other than a revised annuity participant for
any pay period shall be deducted and withheld from the
pay of that participant and contributed to the fund.
``(B) Revised annuity participants.--Except as
provided in subsection (d), 9.3 percent of the basic pay
received by a revised annuity participant for any pay
period shall be deducted and withheld from the pay of
that revised annuity participant and contributed to the
fund.
``(3) Agency contributions.--
``(A) In general.--An amount equal to 7 percent of
the basic pay received by a participant other than a
revised annuity participant shall be contributed to the
fund for a pay period for the participant from the
appropriation or fund which is used for payment of the
participant's basic pay.
``(B) Revised annuity participants.--An amount equal
to 4.7 percent of the basic pay received by a revised
annuity participant shall be contributed to the fund for
a pay period for the revised annuity participant from
the appropriation or fund which is used for payment of
the revised annuity participant's basic pay.''.

TITLE VI--PUBLIC SAFETY COMMUNICATIONS AND ELECTROMAGNETIC SPECTRUM
AUCTIONS

SEC. 6001. <>  DEFINITIONS.

In this title:
(1) 700 mhz band.--The term ``700 MHz band'' means the
portion of the electromagnetic spectrum between the frequencies
from 698 megahertz to 806 megahertz.
(2) 700 mhz d block spectrum.--The term ``700 MHz D block
spectrum'' means the portion of the electromagnetic spectrum
between the frequencies from 758 megahertz to 763 megahertz and
between the frequencies from 788 megahertz to 793 megahertz.
(3) Appropriate committees of congress.--Except as otherwise
specifically provided, the term ``appropriate committees of
Congress'' means--

[[Page 202]]

(A) the Committee on Commerce, Science, and
Transportation of the Senate; and
(B) the Committee on Energy and Commerce of the
House of Representatives.
(4) Assistant secretary.--The term ``Assistant Secretary''
means the Assistant Secretary of Commerce for Communications and
Information.
(5) Board.--The term ``Board'' means the Board of the First
Responder Network Authority established under section 6204(b).
(6) Broadcast television licensee.--The term ``broadcast
television licensee'' means the licensee of--
(A) a full-power television station; or
(B) a low-power television station that has been
accorded primary status as a Class A television licensee
under section 73.6001(a) of title 47, Code of Federal
Regulations.
(7) Broadcast television spectrum.--The term ``broadcast
television spectrum'' means the portions of the electromagnetic
spectrum between the frequencies from 54 megahertz to 72
megahertz, from 76 megahertz to 88 megahertz, from 174 megahertz
to 216 megahertz, and from 470 megahertz to 698 megahertz.
(8) Commercial mobile data service.--The term ``commercial
mobile data service'' means any mobile service (as defined in
section 3 of the Communications Act of 1934 (47 U.S.C. 153))
that is--
(A) a data service;
(B) provided for profit; and
(C) available to the public or such classes of
eligible users as to be effectively available to a
substantial portion of the public, as specified by
regulation by the Commission.
(9) Commercial mobile service.--The term ``commercial mobile
service'' has the meaning given such term in section 332 of the
Communications Act of 1934 (47 U.S.C. 332).
(10) Commercial standards.--The term ``commercial
standards'' means the technical standards followed by the
commercial mobile service and commercial mobile data service
industries for network, device, and Internet Protocol
connectivity. Such term includes standards developed by the
Third Generation Partnership Project (3GPP), the Institute of
Electrical and Electronics Engineers (IEEE), the Alliance for
Telecommunications Industry Solutions (ATIS), the Internet
Engineering Task Force (IETF), and the International
Telecommunication Union (ITU).
(11) Commission.--The term ``Commission'' means the Federal
Communications Commission.
(12) Core network.--The term ``core network'' means the core
network described in section 6202(b)(1).
(13) Emergency call.--The term ``emergency call'' means any
real-time communication with a public safety answering point or
other emergency management or response agency, including--
(A) through voice, text, or video and related data;
and
(B) nonhuman-initiated automatic event alerts, such
as alarms, telematics, or sensor data, which may also
include real-time voice, text, or video communications.

[[Page 203]]

(14) Existing public safety broadband spectrum.--The term
``existing public safety broadband spectrum'' means the portion
of the electromagnetic spectrum between the frequencies--
(A) from 763 megahertz to 768 megahertz;
(B) from 793 megahertz to 798 megahertz;
(C) from 768 megahertz to 769 megahertz; and
(D) from 798 megahertz to 799 megahertz.
(15) First responder network authority.--The term ``First
Responder Network Authority'' means the First Responder Network
Authority established under section 6204.
(16) Forward auction.--The term ``forward auction'' means
the portion of an incentive auction of broadcast television
spectrum under section 6403(c).
(17) Incentive auction.--The term ``incentive auction''
means a system of competitive bidding under subparagraph (G) of
section 309(j)(8) of the Communications Act of 1934, as added by
section 6402.
(18) Interoperability board.--The term ``Interoperability
Board'' means the Technical Advisory Board for First Responder
Interoperability established under section 6203.
(19) Multichannel video programming distributor.--The term
``multichannel video programming distributor'' has the meaning
given such term in section 602 of the Communications Act of 1934
(47 U.S.C. 522).
(20) Narrowband spectrum.--The term ``narrowband spectrum''
means the portion of the electromagnetic spectrum between the
frequencies from 769 megahertz to 775 megahertz and between the
frequencies from 799 megahertz to 805 megahertz.
(21) Nationwide public safety broadband network.--The term
``nationwide public safety broadband network'' means the
nationwide, interoperable public safety broadband network
described in section 6202.
(22) Next generation 9-1-1 services.--The term ``Next
Generation 9-1-1 services'' means an IP-based system comprised
of hardware, software, data, and operational policies and
procedures that--
(A) provides standardized interfaces from emergency
call and message services to support emergency
communications;
(B) processes all types of emergency calls,
including voice, text, data, and multimedia information;
(C) acquires and integrates additional emergency
call data useful to call routing and handling;
(D) delivers the emergency calls, messages, and data
to the appropriate public safety answering point and
other appropriate emergency entities;
(E) supports data or video communications needs for
coordinated incident response and management; and
(F) provides broadband service to public safety
answering points or other first responder entities.
(23) NIST.--The term ``NIST'' means the National Institute
of Standards and Technology.
(24) NTIA.--The term ``NTIA'' means the National
Telecommunications and Information Administration.

[[Page 204]]

(25) Public safety answering point.--The term ``public
safety answering point'' has the meaning given such term in
section 222 of the Communications Act of 1934 (47 U.S.C. 222).
(26) Public safety entity.--The term ``public safety
entity'' means an entity that provides public safety services.
(27) Public safety services.--The term ``public safety
services''--
(A) has the meaning given the term in section 337(f)
of the Communications Act of 1934 (47 U.S.C. 337(f));
and
(B) includes services provided by emergency response
providers, as that term is defined in section 2 of the
Homeland Security Act of 2002 (6 U.S.C. 101).
(28) Public safety trust fund.--The term ``Public Safety
Trust Fund'' means the trust fund established under section
6413(a)(1).
(29) Radio access network.--The term ``radio access
network'' means the radio access network described in section
6202(b)(2).
(30) Reverse auction.--The term ``reverse auction'' means
the portion of an incentive auction of broadcast television
spectrum under section 6403(a), in which a broadcast television
licensee may submit bids stating the amount it would accept for
voluntarily relinquishing some or all of its broadcast
television spectrum usage rights.
(31) State.--The term ``State'' has the meaning given such
term in section 3 of the Communications Act of 1934 (47 U.S.C.
153).
(32) Ultra high frequency.--The term ``ultra high
frequency'' means, with respect to a television channel, that
the channel is located in the portion of the electromagnetic
spectrum between the frequencies from 470 megahertz to 698
megahertz.
(33) Very high frequency.--The term ``very high frequency''
means, with respect to a television channel, that the channel is
located in the portion of the electromagnetic spectrum between
the frequencies from 54 megahertz to 72 megahertz, from 76
megahertz to 88 megahertz, or from 174 megahertz to 216
megahertz.
SEC. 6002. <>  RULE OF CONSTRUCTION.

Each range of frequencies described in this title shall be construed
to be inclusive of the upper and lower frequencies in the range.
SEC. 6003. <>  ENFORCEMENT.

(a) In General.--The Commission shall implement and enforce this
title as if this title is a part of the Communications Act of 1934 (47
U.S.C. 151 et seq.). A violation of this title, or a regulation
promulgated under this title, shall be considered to be a violation of
the Communications Act of 1934, or a regulation promulgated under such
Act, respectively.
(b) Exceptions.--
(1) Other agencies.--Subsection (a) does not apply in the
case of a provision of this title that is expressly required to
be carried out by an agency (as defined in section 551 of title
5, United States Code) other than the Commission.

[[Page 205]]

(2) NTIA regulations.--The Assistant Secretary may
promulgate such regulations as are necessary to implement and
enforce any provision of this title that is expressly required
to be carried out by the Assistant Secretary.
SEC. 6004. <>  NATIONAL SECURITY RESTRICTIONS
ON USE OF FUNDS AND AUCTION
PARTICIPATION.

(a) Use of Funds.--No funds made available by subtitle B or C may be
used to make payments under a contract to a person described in
subsection (c).
(b) Auction Participation.--A person described in subsection (c) may
not participate in a system of competitive bidding under section 309(j)
of the Communications Act of 1934 (47 U.S.C. 309(j))--
(1) that is required to be conducted by this title; or
(2) in which any spectrum usage rights for which licenses
are being assigned were made available under clause (i) of
subparagraph (G) of paragraph (8) of such section, as added by
section 6402.

(c) Person Described.--A person described in this subsection is a
person who has been, for reasons of national security, barred by any
agency of the Federal Government from bidding on a contract,
participating in an auction, or receiving a grant.

Subtitle A--Reallocation of Public Safety Spectrum

SEC. 6101. <> REALLOCATION OF D BLOCK TO
PUBLIC SAFETY.

(a) In General.--The Commission shall reallocate the 700 MHz D block
spectrum for use by public safety entities in accordance with the
provisions of this Act.
(b) Spectrum Allocation.--Section 337(a) of the Communications Act
of 1934 (47 U.S.C. 337(a)) is amended--
(1) by striking ``24'' in paragraph (1) and inserting
``34''; and
(2) by striking ``36'' in paragraph (2) and inserting
``26''.
SEC. 6102. <> FLEXIBLE USE OF NARROWBAND
SPECTRUM.

The Commission may allow the narrowband spectrum to be used in a
flexible manner, including usage for public safety broadband
communications, subject to such technical and interference protection
measures as the Commission may require.
SEC. 6103. <> 470-512 MHZ PUBLIC SAFETY
SPECTRUM.

(a) In General.--Not <> later than 9 years after
the date of enactment of this title, the Commission shall--
(1) reallocate the spectrum in the 470-512 MHz band
(referred to in this section as the ``T-Band spectrum'')
currently used by public safety eligibles as identified in
section 90.303 of title 47, Code of Federal Regulations; and
(2) begin a system of competitive bidding under section
309(j) of the Communications Act of 1934 (47 U.S.C. 309(j)) to
grant new initial licenses for the use of the spectrum described
in paragraph (1).

(b) Auction Proceeds.--Proceeds <> (including
deposits and upfront payments from successful bidders) from the
competitive bidding system described in subsection (a)(2) shall be
available

[[Page 206]]

to the Assistant Secretary to make grants in such sums as necessary to
cover relocation costs for the relocation of public safety entities from
the T-Band spectrum.

(c) <>  Relocation.--Relocation shall be completed
not later than 2 years after the date on which the system of competitive
bidding described in subsection (a)(2) is completed.

Subtitle B--Governance of Public Safety Spectrum

SEC. 6201. <>  SINGLE PUBLIC SAFETY WIRELESS
NETWORK LICENSEE.

(a) Reallocation and Grant of License.--Notwithstanding any other
provision of law, and subject to the provisions of this Act, the
Commission shall reallocate and grant a license to the First Responder
Network Authority for the use of the 700 MHz D block spectrum and
existing public safety broadband spectrum.
(b) Term of License.--
(1) Initial license.--The license granted under subsection
(a) shall be for an initial term of 10 years from the date of
the initial issuance of the license.
(2) Renewal of license.--Prior to expiration of the term of
the initial license granted under subsection (a) or the
expiration of any subsequent renewal of such license, the First
Responder Network Authority shall submit to the Commission an
application for the renewal of such license. Such renewal
application shall demonstrate that, during the preceding license
term, the First Responder Network Authority has met the duties
and obligations set forth under this Act. A renewal license
granted under this paragraph shall be for a term of not to
exceed 10 years.

(c) Facilitation of Transition.--The Commission shall take all
actions necessary to facilitate the transition of the existing public
safety broadband spectrum to the First Responder Network Authority.
SEC. 6202. <>  PUBLIC SAFETY BROADBAND
NETWORK.

(a) Establishment.--The First Responder Network Authority shall
ensure the establishment of a nationwide, interoperable public safety
broadband network.
(b) Network Components.--The nationwide public safety broadband
network shall be based on a single, national network architecture that
evolves with technological advancements and initially consists of--
(1) a core network that--
(A) consists of national and regional data centers,
and other elements and functions that may be distributed
geographically, all of which shall be based on
commercial standards; and
(B) provides the connectivity between--
(i) the radio access network; and
(ii) the public Internet or the public
switched network, or both; and
(2) a radio access network that--
(A) consists of all cell site equipment, antennas,
and backhaul equipment, based on commercial standards,
that

[[Page 207]]

are required to enable wireless communications with
devices using the public safety broadband spectrum; and
(B) shall be developed, constructed, managed,
maintained, and operated taking into account the plans
developed in the State, local, and tribal planning and
implementation grant program under section 6302(a).
SEC. 6203. <>  PUBLIC SAFETY INTEROPERABILITY
BOARD.

(a) Establishment.--There is established within the Commission an
advisory board to be known as the ``Technical Advisory Board for First
Responder Interoperability''.
(b) Membership.--
(1) In general.--
(A) Voting members.--Not later than 30 days after
the date of enactment of this title, the Chairman of the
Commission shall appoint 14 voting members to the
Interoperability Board, of which--
(i) 4 members shall be representatives of
wireless providers, of which--
(I) 2 members shall be
representatives of national wireless
providers;
(II) 1 member shall be a
representative of regional wireless
providers; and
(III) 1 member shall be a
representative of rural wireless
providers;
(ii) 3 members shall be representatives of
equipment manufacturers;
(iii) 4 members shall be representatives of
public safety entities, of which--
(I) not less than 1 member shall be
a representative of management level
employees of public safety entities; and
(II) not less than 1 member shall be
a representative of employees of public
safety entities;
(iv) 3 members shall be representatives of
State and local governments, chosen to reflect
geographic and population density differences
across the United States; and
(v) all members shall have specific expertise
necessary to developing technical requirements
under this section, such as technical expertise,
public safety communications expertise, and
commercial network experience.
(B) Non-voting member.--The Assistant Secretary
shall appoint 1 non-voting member to the
Interoperability Board.
(2) Period of appointment.--
(A) In general.--Except as provided in subparagraph
(B), members of the Interoperability Board shall be
appointed for the life of the Interoperability Board.
(B) Removal for cause.--A member of the
Interoperability Board may be removed for cause upon the
determination of the Chairman of the Commission.
(3) Vacancies.--Any vacancy in the Interoperability Board
shall not affect the powers of the Interoperability Board, and
shall be filled in the same manner as the original appointment.

[[Page 208]]

(4) Chairperson and vice chairperson.--The Interoperability
Board shall select a Chairperson and Vice Chairperson from among
the members of the Interoperability Board.
(5) Quorum.--A majority of the members of the
Interoperability Board shall constitute a quorum.

(c) Duties of the Interoperability Board.--
(1) <>  Development of technical
requirements.--Not later than 90 days after the date of
enactment of this Act, the Interoperability Board, in
consultation with the NTIA, NIST, and the Office of Emergency
Communications of the Department of Homeland Security, shall--
(A) develop recommended minimum technical
requirements to ensure a nationwide level of
interoperability for the nationwide public safety
broadband network; and
(B) submit to the Commission for review in
accordance with paragraph (3) recommended minimum
technical requirements described in subparagraph (A).
(2) Consideration.--In developing recommended minimum
technical requirements under paragraph (1), the Interoperability
Board shall base the recommended minimum technical requirements
on the commercial standards for Long Term Evolution (LTE)
service.
(3) Approval of recommendations.--
(A) <>  In general.--Not later than
30 days after the date on which the Interoperability
Board submits recommended minimum technical requirements
under paragraph (1)(B), the Commission shall approve the
recommendations, with any revisions it deems necessary,
and transmit such recommendations to the First Responder
Network Authority.
(B) Review.--Any actions taken under subparagraph
(A) shall not be reviewable as a final agency action.

(d) Travel Expenses.--The members of the Interoperability Board
shall be allowed travel expenses, including per diem in lieu of
subsistence, at rates authorized for employees of agencies under
subchapter I of chapter 57 of title 5, United States Code, while away
from their homes or regular places of business in the performance of
services for the Interoperability Board.
(e) Exemption From FACA.--The Federal Advisory Committee Act (5
U.S.C. App.) shall not apply to the Interoperability Board.
(f) Termination of Authority.--The Interoperability Board shall
terminate 15 days after the date on which the Commission transmits the
recommendations to the First Responder Network Authority under
subsection (c)(3)(A).
SEC. 6204. <>  ESTABLISHMENT OF THE FIRST
RESPONDER NETWORK AUTHORITY.

(a) Establishment.--There is established as an independent authority
within the NTIA the ``First Responder Network Authority'' or
``FirstNet''.
(b) Board.--
(1) In general.--The First Responder Network Authority shall
be headed by a Board, which shall consist of--
(A) the Secretary of Homeland Security;
(B) the Attorney General of the United States;
(C) the Director of the Office of Management and
Budget; and

[[Page 209]]

(D) 12 individuals appointed by the Secretary of
Commerce in accordance with paragraph (2).
(2) Appointments.--
(A) In general.--In making appointments under
paragraph (1)(D), the Secretary of Commerce shall--
(i) appoint not fewer than 3 individuals to
represent the collective interests of the States,
localities, tribes, and territories;
(ii) seek to ensure geographic and regional
representation of the United States in such
appointments;
(iii) seek to ensure rural and urban
representation in such appointments; and
(iv) appoint not fewer than 3 individuals who
have served as public safety professionals.
(B) Required qualifications.--
(i) In general.--Each member appointed under
paragraph (1)(D) should meet not less than 1 of
the following criteria:
(I) Public safety experience.--
Knowledge and experience in the use of
Federal, State, local, or tribal public
safety or emergency response.
(II) Technical expertise.--Technical
expertise and fluency regarding
broadband communications, including
public safety communications.
(III) Network expertise.--Expertise
in building, deploying, and operating
commercial telecommunications networks.
(IV) Financial expertise.--Expertise
in financing and funding
telecommunications networks.
(ii) Expertise to be represented.--In making
appointments under paragraph (1)(D), the Secretary
of Commerce shall appoint--
(I) not fewer than 1 individual who
satisfies the requirement under
subclause (II) of clause (i);
(II) not fewer than 1 individual who
satisfies the requirement under
subclause (III) of clause (i); and
(III) not fewer than 1 individual
who satisfies the requirement under
subclause (IV) of clause (i).
(C) Citizenship.--No individual other than a citizen
of the United States may serve as a member of the Board.

(c) Terms of Appointment.--
(1) Initial appointment deadline.--Members of the Board
shall be appointed not later than 180 days after the date of the
enactment of this title.
(2) Terms.--
(A) Length.--
(i) In general.--Each member of the Board
described in subparagraphs (A) through (C) of
subsection (b)(1) shall serve as a member of the
Board for the life of the First Responder Network
Authority.
(ii) Appointed individuals.--The term of
office of each individual appointed to be a member
of the Board under subsection (b)(1)(D) shall be 3
years. No

[[Page 210]]

member described in this clause may serve more
than 2 consecutive full 3-year terms.
(B) Expiration of term.--Any member whose term has
expired may serve until such member's successor has
taken office, or until the end of the calendar year in
which such member's term has expired, whichever is
earlier.
(C) Appointment to fill vacancy.--Any member
appointed to fill a vacancy occurring prior to the
expiration of the term for which that member's
predecessor was appointed shall be appointed for the
remainder of the predecessor's term.
(D) Staggered terms.--With respect to the initial
members of the Board appointed under subsection
(b)(1)(D)--
(i) 4 members shall serve for a term of 3
years;
(ii) 4 members shall serve for a term of 2
years; and
(iii) 4 members shall serve for a term of 1
year.
(3) Vacancies.--A vacancy in the membership of the Board
shall not affect the Board's powers, and shall be filled in the
same manner as the original member was appointed.

(d) Chair.--
(1) Selection.--The Secretary of Commerce shall select, from
among the members of the Board appointed under subsection
(b)(1)(D), an individual to serve for a 2-year term as Chair of
the Board.
(2) Consecutive terms.--An individual may not serve for more
than 2 consecutive terms as Chair of the Board.

(e) Meetings.--
(1) Frequency.--The Board shall meet--
(A) at the call of the Chair; and
(B) not less frequently than once each quarter.
(2) Transparency.--Meetings of the Board, including any
committee of the Board, shall be open to the public. The Board
may, by majority vote, close any such meeting only for the time
necessary to preserve the confidentiality of commercial or
financial information that is privileged or confidential, to
discuss personnel matters, or to discuss legal matters affecting
the First Responder Network Authority, including pending or
potential litigation.

(f) Quorum.--Eight members of the Board shall constitute a quorum,
including at least 6 of the members appointed under subsection
(b)(1)(D).
(g) Compensation.--
(1) In general.--The members of the Board appointed under
subsection (b)(1)(D) shall be compensated at the daily rate of
basic pay for level IV of the Executive Schedule for each day
during which such members are engaged in performing a function
of the Board.
(2) Prohibition on compensation.--A member of the Board
appointed under subparagraphs (A) through (C) of subsection
(b)(1) shall serve without additional pay, and shall not
otherwise benefit, directly or indirectly, as a result of their
service to the First Responder Network Authority, but shall be
allowed a per diem allowance for travel expenses, at rates
authorized for an employee of an agency under subchapter I of
chapter 57 of title 5, United States Code, while away

[[Page 211]]

from the home or regular place of business of the member in the
performance of the duties of the First Responder Network
Authority.
SEC. 6205. <>  ADVISORY COMMITTEES OF THE
FIRST RESPONDER NETWORK AUTHORITY.

(a) Advisory Committees.--The First Responder Network Authority--
(1) shall establish a standing public safety advisory
committee to assist the First Responder Network Authority in
carrying out its duties and responsibilities under this
subtitle; and
(2) may establish additional standing or ad hoc committees,
panels, or councils as the First Responder Network Authority
determines are necessary.

(b) Selection of Agents, Consultants, and Experts.--
(1) In general.--The First Responder Network Authority shall
select parties to serve as its agents, consultants, or experts
in a fair, transparent, and objective manner, and such agents
may include a program manager to carry out certain of the duties
and responsibilities of deploying and operating the nationwide
public safety broadband network described in subsections (b) and
(c) of section 6206.
(2) Binding and final.--If the selection of an agent,
consultant, or expert satisfies the requirements under paragraph
(1), the selection of that agent, consultant, or expert shall be
final and binding.
SEC. 6206. <>  POWERS, DUTIES, AND
RESPONSIBILITIES OF THE FIRST RESPONDER
NETWORK AUTHORITY.

(a) General Powers.--The First Responder Network Authority shall
have the authority to do the following:
(1) To exercise, through the actions of its Board, all
powers specifically granted by the provisions of this subtitle,
and such incidental powers as shall be necessary.
(2) To hold such hearings, sit and act at such times and
places, take such testimony, and receive such evidence as the
First Responder Network Authority considers necessary to carry
out its responsibilities and duties.
(3) To obtain grants and funds from and make contracts with
individuals, private companies, organizations, institutions, and
Federal, State, regional, and local agencies.
(4) To accept, hold, administer, and utilize gifts,
donations, and bequests of property, both real and personal, for
the purposes of aiding or facilitating the work of the First
Responder Network Authority.
(5) To spend funds under paragraph (3) in a manner
authorized by the Board, but only for purposes that will advance
or enhance public safety communications consistent with this
title.
(6) To take such other actions as the First Responder
Network Authority (through the Board) may from time to time
determine necessary, appropriate, or advisable to accomplish the
purposes of this title.

(b) Duty and Responsibility to Deploy and Operate a Nationwide
Public Safety Broadband Network.--
(1) In general.--The First Responder Network Authority shall
hold the single public safety wireless license granted

[[Page 212]]

under section 6201 and take all actions necessary to ensure the
building, deployment, and operation of the nationwide public
safety broadband network, in consultation with Federal, State,
tribal, and local public safety entities, the Director of NIST,
the Commission, and the public safety advisory committee
established in section 6205(a), including by, at a minimum--
(A) ensuring nationwide standards for use and access
of the network;
(B) issuing open, transparent, and competitive
requests for proposals to private sector entities for
the purposes of building, operating, and maintaining the
network that use, without materially changing, the
minimum technical requirements developed under section
6203;
(C) encouraging that such requests leverage, to the
maximum extent economically desirable, existing
commercial wireless infrastructure to speed deployment
of the network; and
(D) managing and overseeing the implementation and
execution of contracts or agreements with non-Federal
entities to build, operate, and maintain the network.
(2) Requirements.--In carrying out the duties and
responsibilities of this subsection, including issuing requests
for proposals, the First Responder Network Authority shall--
(A) ensure the safety, security, and resiliency of
the network, including requirements for protecting and
monitoring the network to protect against cyberattack;
(B) promote competition in the equipment market,
including devices for public safety communications, by
requiring that equipment for use on the network be--
(i) built to open, non-proprietary,
commercially available standards;
(ii) capable of being used by any public
safety entity and by multiple vendors across all
public safety broadband networks operating in the
700 MHz band; and
(iii) backward-compatible with existing
commercial networks to the extent that such
capabilities are necessary and technically and
economically reasonable;
(C) promote integration of the network with public
safety answering points or their equivalent; and
(D) address special considerations for areas or
regions with unique homeland security or national
security needs.
(3) Rural coverage.--In carrying out the duties and
responsibilities of this subsection, including issuing requests
for proposals, the nationwide, interoperable public safety
broadband network, consistent with the license granted under
section 6201, shall require deployment phases with substantial
rural coverage milestones as part of each phase of the
construction and deployment of the network. To the maximum
extent economically desirable, such proposals shall include
partnerships with existing commercial mobile providers to
utilize cost-effective opportunities to speed deployment in
rural areas.
(4) Execution of authority.--In carrying out the duties and
responsibilities of this subsection, the First Responder Network
Authority may--

[[Page 213]]

(A) obtain grants from and make contracts with
individuals, private companies, and Federal, State,
regional, and local agencies;
(B) hire or accept voluntary services of
consultants, experts, advisory boards, and panels to aid
the First Responder Network Authority in carrying out
such duties and responsibilities;
(C) receive payment for use of--
(i) network capacity licensed to the First
Responder Network Authority; and
(ii) network infrastructure constructed,
owned, or operated by the First Responder Network
Authority; and
(D) take such other actions as may be necessary to
accomplish the purposes set forth in this subsection.

(c) Other Specific Duties and Responsibilities.--
(1) Establishment of network policies.--In carrying out the
requirements under subsection (b), the First Responder Network
Authority shall develop--
(A) requests for proposals with appropriate--
(i) timetables for construction, including by
taking into consideration the time needed to build
out to rural areas and the advantages offered
through partnerships with existing commercial
providers under paragraph (3);
(ii) coverage areas, including coverage in
rural and nonurban areas;
(iii) service levels;
(iv) performance criteria; and
(v) other similar matters for the construction
and deployment of such network;
(B) the technical and operational requirements of
the network;
(C) practices, procedures, and standards for the
management and operation of such network;
(D) terms of service for the use of such network,
including billing practices; and
(E) ongoing compliance review and monitoring of
the--
(i) management and operation of such network;
(ii) practices and procedures of the entities
operating on and the personnel using such network;
and
(iii) necessary training needs of network
operators and users.
(2) State and local planning.--
(A) Required consultation.--In developing requests
for proposals and otherwise carrying out its
responsibilities under this Act, the First Responder
Network Authority shall consult with regional, State,
tribal, and local jurisdictions regarding the
distribution and expenditure of any amounts required to
carry out the policies established under paragraph (1),
including with regard to the--
(i) construction of a core network and any
radio access network build out;
(ii) placement of towers;
(iii) coverage areas of the network, whether
at the regional, State, tribal, or local level;

[[Page 214]]

(iv) adequacy of hardening, security,
reliability, and resiliency requirements;
(v) assignment of priority to local users;
(vi) assignment of priority and selection of
entities seeking access to or use of the
nationwide public safety interoperable broadband
network established under subsection (b); and
(vii) training needs of local users.
(B) Method of consultation.--The consultation
required under subparagraph (A) shall occur between the
First Responder Network Authority and the single officer
or governmental body designated under section 6302(d).
(3) <>  Leveraging existing
infrastructure.--In carrying out the requirement under
subsection (b), the First Responder Network Authority shall
enter into agreements to utilize, to the maximum extent
economically desirable, existing--
(A) commercial or other communications
infrastructure; and
(B) Federal, State, tribal, or local infrastructure.
(4) Maintenance and upgrades.--The First Responder Network
Authority shall ensure the maintenance, operation, and
improvement of the nationwide public safety broadband network,
including by ensuring that the First Responder Network Authority
updates and revises any policies established under paragraph (1)
to take into account new and evolving technologies.
(5) Roaming agreements.--The First Responder Network
Authority shall negotiate and enter into, as it determines
appropriate, roaming agreements with commercial network
providers to allow the nationwide public safety broadband
network to roam onto commercial networks and gain prioritization
of public safety communications over such networks in times of
an emergency.
(6) <>  Network infrastructure and device
criteria.--The Director of NIST, in consultation with the First
Responder Network Authority and the Commission, shall ensure the
development of a list of certified devices and components
meeting appropriate protocols and standards for public safety
entities and commercial vendors to adhere to, if such entities
or vendors seek to have access to, use of, or compatibility with
the nationwide public safety broadband network.
(7) Representation before standard setting entities.--The
First Responder Network Authority, in consultation with the
Director of NIST, the Commission, and the public safety advisory
committee established under section 6205(a), shall represent the
interests of public safety users of the nationwide public safety
broadband network before any proceeding, negotiation, or other
matter in which a standards organization, standards body,
standards development organization, or any other recognized
standards-setting entity addresses the development of standards
relating to interoperability.
(8) Prohibition on negotiation with foreign governments.--
The First Responder Network Authority shall not have the
authority to negotiate or enter into any agreements with a
foreign government on behalf of the United States.

[[Page 215]]

(d) Exemption From Certain Laws.--Any action taken or decisions made
by the First Responder Network Authority shall be exempt from the
requirements of--
(1) section 3506 of title 44, United States Code (commonly
referred to as the Paperwork Reduction Act);
(2) chapter 5 of title 5, United States Code (commonly
referred to as the Administrative Procedures Act); and
(3) chapter 6 of title 5, United States Code (commonly
referred to as the Regulatory Flexibility Act).

(e) Network Construction Fund.--
(1) Establishment.--There is established in the Treasury of
the United States a fund to be known as the ``Network
Construction Fund''.
(2) Use of fund.--Amounts deposited into the Network
Construction Fund shall be used by the--
(A) First Responder Network Authority to carry out
this section, except for administrative expenses; and
(B) NTIA to make grants to States under section
6302(e)(3)(C)(iii)(I).

(f) Termination of Authority.--The authority of the First Responder
Network Authority shall terminate on the date that is 15 years after the
date of enactment of this title.
(g) GAO Report.--Not later than 10 years after the date of the
enactment of this Act, the Comptroller General of the United States
shall submit to Congress a report on what action Congress should take
regarding the 15-year sunset of authority under subsection (f).
SEC. 6207. <>  INITIAL FUNDING FOR THE FIRST
RESPONDER NETWORK AUTHORITY.

(a) Borrowing Authority.--Prior to the deposit of proceeds into the
Public Safety Trust Fund from the incentive auctions to be carried out
under section 309(j)(8)(G) of the Communications Act of 1934 or the
auction of spectrum pursuant to section 6401, the NTIA may borrow from
the Treasury such sums as may be necessary, but not to exceed
$2,000,000,000, to implement this subtitle. <> The
NTIA shall reimburse the Treasury, without interest, from funds
deposited into the Public Safety Trust Fund.

(b) Prohibition.--
(1) <>  In general.--Administrative
expenses of the First Responder Network Authority may not exceed
$100,000,000 during the 10-year period beginning on the date of
enactment of this title.
(2) Definition.--For purposes of this subsection, the term
``administrative expenses'' does not include the costs incurred
by the First Responder Network Authority for oversight and
audits to protect against waste, fraud, and abuse.
SEC. 6208. <>  PERMANENT SELF-FUNDING; DUTY TO
ASSESS AND COLLECT FEES FOR NETWORK USE.

(a) In General.--Notwithstanding section 337 of the Communications
Act of 1934 (47 U.S.C. 337), the First Responder Network Authority is
authorized to assess and collect the following fees:
(1) Network user fee.--A user or subscription fee from each
entity, including any public safety entity or secondary user,
that seeks access to or use of the nationwide public safety
broadband network.
(2) Lease fees related to network capacity.--

[[Page 216]]

(A) In general.--A fee from any entity that seeks to
enter into a covered leasing agreement.
(B) <>  Covered leasing
agreement.--For purposes of subparagraph (A), a
``covered leasing agreement'' means a written agreement
resulting from a public-private arrangement to
construct, manage, and operate the nationwide public
safety broadband network between the First Responder
Network Authority and secondary user to permit--
(i) access to network capacity on a secondary
basis for non-public safety services; and
(ii) the spectrum allocated to such entity to
be used for commercial transmissions along the
dark fiber of the long-haul network of such
entity.
(3) Lease fees related to network equipment and
infrastructure.--A fee from any entity that seeks access to or
use of any equipment or infrastructure, including antennas or
towers, constructed or otherwise owned by the First Responder
Network Authority resulting from a public-private arrangement to
construct, manage, and operate the nationwide public safety
broadband network.

(b) Establishment of Fee Amounts; Permanent Self-funding.--The total
amount of the fees assessed for each fiscal year pursuant to this
section shall be sufficient, and shall not exceed the amount necessary,
to recoup the total expenses of the First Responder Network Authority in
carrying out its duties and responsibilities described under this
subtitle for the fiscal year involved.
(c) <>  Annual Approval.--The NTIA shall review the
fees assessed under this section on an annual basis, and such fees may
only be assessed if approved by the NTIA.

(d) Required Reinvestment of Funds.--The First Responder Network
Authority shall reinvest amounts received from the assessment of fees
under this section in the nationwide public safety interoperable
broadband network by using such funds only for constructing,
maintaining, operating, or improving the network.
SEC. 6209. <>  AUDIT AND REPORT.

(a) Audit.--
(1) In general.--The Secretary of Commerce shall enter into
a contract with an independent auditor to conduct an audit, on
an annual basis, of the First Responder Network Authority in
accordance with general accounting principles and procedures
applicable to commercial corporate transactions. Each audit
conducted under this paragraph shall be made available to the
appropriate committees of Congress.
(2) Location.--Any audit conducted under paragraph (1) shall
be conducted at the place or places where accounts of the First
Responder Network Authority are normally kept.
(3) Access to first responder network authority books and
documents.--
(A) In general.--For purposes of an audit conducted
under paragraph (1), the representatives of the
independent auditor shall--
(i) have access to all books, accounts,
records, reports, files, and all other papers,
things, or property belonging to or in use by the
First Responder Network

[[Page 217]]

Authority that pertain to the financial
transactions of the First Responder Network
Authority and are necessary to facilitate the
audit; and
(ii) be afforded full facilities for verifying
transactions with the balances or securities held
by depositories, fiscal agents, and custodians.
(B) Requirement.--All books, accounts, records,
reports, files, papers, and property of the First
Responder Network Authority shall remain in the
possession and custody of the First Responder Network
Authority.

(b) Report.--
(1) In general.--The independent auditor selected to conduct
an audit under this section shall submit a report of each audit
conducted under subsection (a) to--
(A) the appropriate committees of Congress;
(B) the President; and
(C) the First Responder Network Authority.
(2) Contents.--Each report submitted under paragraph (1)
shall contain--
(A) such comments and information as the independent
auditor determines necessary to inform Congress of the
financial operations and condition of the First
Responder Network Authority;
(B) any recommendations of the independent auditor
relating to the financial operations and condition of
the First Responder Network Authority; and
(C) a description of any program, expenditure, or
other financial transaction or undertaking of the First
Responder Network Authority that was observed during the
course of the audit, which, in the opinion of the
independent auditor, has been carried on or made without
the authority of law.
SEC. 6210. <>  ANNUAL REPORT TO CONGRESS.

(a) In General.--Not later than 1 year after the date of enactment
of this Act, and each year thereafter, the First Responder Network
Authority shall submit an annual report covering the preceding fiscal
year to the appropriate committees of Congress.
(b) Required Content.--The report required under subsection (a)
shall include--
(1) a comprehensive and detailed report of the operations,
activities, financial condition, and accomplishments of the
First Responder Network Authority under this section; and
(2) such recommendations or proposals for legislative or
administrative action as the First Responder Network Authority
deems appropriate.

(c) Availability to Testify.--The members of the Board and employees
of the First Responder Network Authority shall be available to testify
before the appropriate committees of the Congress with respect to--
(1) the report required under subsection (a);
(2) the report of any audit conducted under section 6210; or
(3) any other matter which such committees may determine
appropriate.

[[Page 218]]

SEC. 6211. <>  PUBLIC SAFETY ROAMING AND
PRIORITY ACCESS.

The Commission may adopt rules, if necessary in the public interest,
to improve the ability of public safety networks to roam onto commercial
networks and to gain priority access to commercial networks in an
emergency if--
(1) the public safety entity equipment is technically
compatible with the commercial network;
(2) the commercial network is reasonably compensated; and
(3) such access does not preempt or otherwise terminate or
degrade all existing voice conversations or data sessions.
SEC. 6212. <>  PROHIBITION ON DIRECT OFFERING
OF COMMERCIAL TELECOMMUNICATIONS SERVICE
DIRECTLY TO CONSUMERS.

(a) In General.--The First Responder Network Authority shall not
offer, provide, or market commercial telecommunications or information
services directly to consumers.
(b) Rule of Construction.--Nothing in this section shall be
construed to prohibit the First Responder Network Authority and a
secondary user from entering into a covered leasing agreement pursuant
to section 6208(a)(2)(B). Nothing in this section shall be construed to
limit the First Responder Network Authority from collecting lease fees
related to network equipment and infrastructure pursuant to section
6208(a)(3).
SEC. 6213. <>  PROVISION OF TECHNICAL
ASSISTANCE.

The Commission may provide technical assistance to the First
Responder Network Authority and may take any action necessary to assist
the First Responder Network Authority in effectuating its duties and
responsibilities under this subtitle.

Subtitle C--Public Safety Commitments

SEC. 6301. <>  STATE AND LOCAL IMPLEMENTATION
FUND.

(a) Establishment.--There is established in the Treasury of the
United States a fund to be known as the State and Local Implementation
Fund.
(b) Amounts Available for State and Local Implementation Grant
Program.--Any amounts borrowed under subsection (c)(1) and any amounts
in the State and Local Implementation Fund that are not necessary to
reimburse the general fund of the Treasury for such borrowed amounts
shall be available to the Assistant Secretary to implement section 6302.
(c) Borrowing Authority.--
(1) In general.--Prior to the end of fiscal year 2022, the
Assistant Secretary may borrow from the general fund of the
Treasury such sums as may be necessary, but not to exceed
$135,000,000, to implement section 6302.
(2) Reimbursement.--The Assistant Secretary shall reimburse
the general fund of the Treasury, without interest, for any
amounts borrowed under paragraph (1) as funds are deposited into
the State and Local Implementation Fund.

(d) Transfer of Unused Funds.--If there is a balance remaining in
the State and Local Implementation Fund on September 30, 2022, the
Secretary of the Treasury shall transfer such balance to the general
fund of the Treasury, where such balance shall be dedicated for the sole
purpose of deficit reduction.

[[Page 219]]

SEC. 6302. <>  STATE AND LOCAL IMPLEMENTATION.

(a) Establishment of State and Local Implementation Grant Program.--
The Assistant Secretary, in consultation with the First Responder
Network Authority, shall take such action as is necessary to establish a
grant program to make grants to States to assist State, regional,
tribal, and local jurisdictions to identify, plan, and implement the
most efficient and effective way for such jurisdictions to utilize and
integrate the infrastructure, equipment, and other architecture
associated with the nationwide public safety broadband network to
satisfy the wireless communications and data services needs of that
jurisdiction, including with regards to coverage, siting, and other
needs.
(b) Matching Requirements; Federal Share.--
(1) In general.--The Federal share of the cost of any
activity carried out using a grant under this section may not
exceed 80 percent of the eligible costs of carrying out that
activity, as determined by the Assistant Secretary, in
consultation with the First Responder Network Authority.
(2) Waiver.--The Assistant Secretary may waive, in whole or
in part, the requirements of paragraph (1) for good cause shown
if the Assistant Secretary determines that such a waiver is in
the public interest.

(c) <>  Programmatic Requirements.--Not later than
6 months after the date of enactment of this Act, the Assistant
Secretary, in consultation with the First Responder Network Authority,
shall establish requirements relating to the grant program to be carried
out under this section, including the following:
(1) Defining eligible costs for purposes of subsection
(b)(1).
(2) Determining the scope of eligible activities for grant
funding under this section.
(3) Prioritizing grants for activities that ensure coverage
in rural as well as urban areas.

(d) Certification and Designation of Officer or Governmental Body.--
In carrying out the grant program established under this section, the
Assistant Secretary shall require each State to certify in its
application for grant funds that the State has designated a single
officer or governmental body to serve as the coordinator of
implementation of the grant funds.
(e) State Network.--
(1) Notice.--Upon the completion of the request for proposal
process conducted by the First Responder Network Authority for
the construction, operation, maintenance, and improvement of the
nationwide public safety broadband network, the First Responder
Network Authority shall provide to the Governor of each State,
or his designee--
(A) notice of the completion of the request for
proposal process;
(B) details of the proposed plan for buildout of the
nationwide, interoperable broadband network in such
State; and
(C) the funding level for the State as determined by
the NTIA.
(2) <>  State decision.--Not later than 90
days after the date on which the Governor of a State receives
notice under paragraph (1), the Governor shall choose whether
to--

[[Page 220]]

(A) participate in the deployment of the nationwide,
interoperable broadband network as proposed by the First
Responder Network Authority; or
(B) conduct its own deployment of a radio access
network in such State.
(3) Process.--
(A) <>  In general.--Upon
making a decision to opt-out under paragraph (2)(B), the
Governor shall notify the First Responder Network
Authority, the NTIA, and the Commission of such
decision.
(B) <>  State request for
proposals.--Not later than 180 days after the date on
which a Governor provides notice under subparagraph (A),
the Governor shall develop and complete requests for
proposals for the construction, maintenance, and
operation of the radio access network within the State.
(C) Submission and approval of alternative plan.--
(i) In general.--The State shall submit an
alternative plan for the construction,
maintenance, operation, and improvements of the
radio access network within the State to the
Commission, and such plan shall demonstrate--
(I) that the State will be in
compliance with the minimum technical
interoperability requirements developed
under section 6203; and
(II) interoperability with the
nationwide public safety broadband
network.
(ii) Commission approval or disapproval.--Upon
submission of a State plan under clause (i), the
Commission shall either approve or disapprove the
plan.
(iii) Approval.--If the Commission approves a
plan under this subparagraph, the State--
(I) may apply to the NTIA for a
grant to construct the radio access
network within the State that includes
the showing described in subparagraph
(D); and
(II) shall apply to the NTIA to
lease spectrum capacity from the First
Responder Network Authority.
(iv) Disapproval.--If the Commission
disapproves a plan under this subparagraph, the
construction, maintenance, operation, and
improvements of the network within the State shall
proceed in accordance with the plan proposed by
the First Responder Network Authority.
(D) Funding requirements.--In order to obtain grant
funds and spectrum capacity leasing rights under
subparagraph (C)(iii), a State shall demonstrate--
(i) that the State has--
(I) the technical capabilities to
operate, and the funding to support, the
State radio access network;
(II) has the ability to maintain
ongoing interoperability with the
nationwide public safety broadband
network; and

[[Page 221]]

(III) the ability to complete the
project within specified comparable
timelines specific to the State;
(ii) the cost-effectiveness of the State plan
submitted under subparagraph (C)(i); and
(iii) comparable security, coverage, and
quality of service to that of the nationwide
public safety broadband network.

(f) User Fees.--If a State chooses to build its own radio access
network, the State shall pay any user fees associated with State use of
elements of the core network.
(g) Prohibition.--
(1) In general.--A State that chooses to build its own radio
access network shall not provide commercial service to consumers
or offer wholesale leasing capacity of the network within the
State except directly through public-private partnerships for
construction, maintenance, operation, and improvement of the
network within the State.
(2) Rule of construction.--Nothing in this subsection shall
be construed to prohibit the State and a secondary user from
entering into a covered leasing agreement. Any revenue gained by
the State from such a leasing agreement shall be used only for
constructing, maintaining, operating, or improving the radio
access network of the State.

(h) Judicial Review.--
(1) In general.--The United States District Court for the
District of Columbia shall have exclusive jurisdiction to review
a decision of the Commission made under subsection
(e)(3)(C)(iv).
(2) Standard of review.--The court shall affirm the decision
of the Commission unless--
(A) the decision was procured by corruption, fraud,
or undue means;
(B) there was actual partiality or corruption in the
Commission; or
(C) the Commission was guilty of misconduct in
refusing to hear evidence pertinent and material to the
decision or of any other misbehavior by which the rights
of any party have been prejudiced.
SEC. 6303. <>  PUBLIC SAFETY WIRELESS
COMMUNICATIONS RESEARCH AND DEVELOPMENT.

(a) NIST Directed Research and Development Program.--From amounts
made available from the Public Safety Trust Fund, the Director of NIST,
in consultation with the Commission, the Secretary of Homeland Security,
and the National Institute of Justice of the Department of Justice, as
appropriate, shall conduct research and assist with the development of
standards, technologies, and applications to advance wireless public
safety communications.
(b) Required Activities.--In carrying out the requirement under
subsection (a), the Director of NIST, in consultation with the First
Responder Network Authority and the public safety advisory committee
established under section 6205(a), shall--
(1) document public safety wireless communications technical
requirements;

[[Page 222]]

(2) accelerate the development of the capability for
communications between currently deployed public safety
narrowband systems and the nationwide public safety broadband
network;
(3) establish a research plan, and direct research, that
addresses the wireless communications needs of public safety
entities beyond what can be provided by the current generation
of broadband technology;
(4) accelerate the development of mission critical voice,
including device-to-device ``talkaround'' capability over
broadband networks, public safety prioritization, authentication
capabilities, and standard application programing interfaces for
the nationwide public safety broadband network, if necessary and
practical;
(5) accelerate the development of communications technology
and equipment that can facilitate the eventual migration of
public safety narrowband communications to the nationwide public
safety broadband network; and
(6) convene working groups of relevant government and
commercial parties to achieve the requirements in paragraphs (1)
through (5).

Subtitle D--Spectrum Auction Authority

SEC. 6401. <>  DEADLINES FOR AUCTION OF
CERTAIN SPECTRUM.

(a) Clearing Certain Federal Spectrum.--
(1) <>  In general.--The President shall--
(A) not later than 3 years after the date of the
enactment of this Act, begin the process of withdrawing
or modifying the assignment to a Federal Government
station of the electromagnetic spectrum described in
paragraph (2); and
(B) <>  not later than 30 days
after completing the withdrawal or modification, notify
the Commission that the withdrawal or modification is
complete.
(2) Spectrum described.--The electromagnetic spectrum
described in this paragraph is the 15 megahertz of spectrum
between 1675 megahertz and 1710 megahertz identified under
paragraph (3).
(3) <>  Identification by secretary of
commerce.--Not later than 1 year after the date of the enactment
of this Act, the Secretary of Commerce shall submit to the
President a report identifying 15 megahertz of spectrum between
1675 megahertz and 1710 megahertz for reallocation from Federal
use to non-Federal use.

(b) Reallocation and Auction.--
(1) In general.--Notwithstanding paragraph (15)(A) of
section 309(j) of the Communications Act of 1934 (47 U.S.C.
309(j)), not later than 3 years after the date of the enactment
of this Act, the Commission shall, except as provided in
paragraph (4)--
(A) allocate the spectrum described in paragraph (2)
for commercial use; and
(B) through a system of competitive bidding under
such section, grant new initial licenses for the use of
such spectrum, subject to flexible-use service rules.

[[Page 223]]

(2) Spectrum described.--The spectrum described in this
paragraph is the following:
(A) The frequencies between 1915 megahertz and 1920
megahertz.
(B) The frequencies between 1995 megahertz and 2000
megahertz.
(C) The frequencies described in subsection (a)(2).
(D) The frequencies between 2155 megahertz and 2180
megahertz.
(E) Fifteen megahertz of contiguous spectrum to be
identified by the Commission.
(3) Proceeds to cover 110 percent of federal relocation or
sharing costs.--Nothing in paragraph (1) shall be construed to
relieve the Commission from the requirements of section
309(j)(16)(B) of the Communications Act of 1934 (47 U.S.C.
309(j)(16)(B)).
(4) Determination by commission.--If the Commission
determines that the band of frequencies described in paragraph
(2)(A) or the band of frequencies described in paragraph (2)(B)
cannot be used without causing harmful interference to
commercial mobile service licensees in the frequencies between
1930 megahertz and 1995 megahertz, the Commission may not--
(A) allocate such band for commercial use under
paragraph (1)(A); or
(B) grant licenses under paragraph (1)(B) for the
use of such band.

(c) Auction Proceeds.--Section 309(j)(8) of the Communications Act
of 1934 (47 U.S.C. 309(j)(8)) is amended--
(1) in subparagraph (A), by striking ``(D), and (E),'' and
inserting ``(D), (E), (F), and (G),'';
(2) in subparagraph (C)(i), by striking ``subparagraph
(E)(ii)'' and inserting ``subparagraphs (D)(ii), (E)(ii), (F),
and (G)'';
(3) in subparagraph (D)--
(A) by striking the heading and inserting ``Proceeds
from reallocated federal spectrum.--'';
(B) by striking ``Cash'' and inserting the
following:
``(i) In general.--Except as provided in
clause (ii), cash''; and
(C) by adding at the end the following:
``(ii) Certain other proceeds.--
Notwithstanding subparagraph (A) and except as
provided in subparagraph (B), in the case of
proceeds (including deposits and upfront payments
from successful bidders) attributable to the
auction of eligible frequencies described in
paragraph (2) of section 113(g) of the National
Telecommunications and Information Administration
Organization Act that are required to be auctioned
by section 6401(b)(1)(B) of the Middle Class Tax
Relief and Job Creation Act of 2012, such portion
of such proceeds as is necessary to cover the
relocation or sharing costs (as defined in
paragraph (3) of such section 113(g)) of Federal
entities relocated from such eligible frequencies
shall be deposited in the Spectrum Relocation
Fund. The remainder of such proceeds shall

[[Page 224]]

be deposited in the Public Safety Trust Fund
established by section 6413(a)(1) of the Middle
Class Tax Relief and Job Creation Act of 2012.'';
and
(4) by adding at the end the following:
``(F) Certain proceeds designated for public safety
trust fund.--Notwithstanding subparagraph (A) and except
as provided in subparagraphs (B) and (D)(ii), the
proceeds (including deposits and upfront payments from
successful bidders) from the use of a system of
competitive bidding under this subsection pursuant to
section 6401(b)(1)(B) of the Middle Class Tax Relief and
Job Creation Act of 2012 shall be deposited in the
Public Safety Trust Fund established by section
6413(a)(1) of such Act.''.
SEC. 6402. GENERAL AUTHORITY FOR INCENTIVE AUCTIONS.

Section 309(j)(8) of the Communications Act of 1934, as amended by
section 6401(c), is further amended by adding at the end the following:
``(G) Incentive auctions.--
``(i) In general.--Notwithstanding
subparagraph (A) and except as provided in
subparagraph (B), the Commission may encourage a
licensee to relinquish voluntarily some or all of
its licensed spectrum usage rights in order to
permit the assignment of new initial licenses
subject to flexible-use service rules by sharing
with such licensee a portion, based on the value
of the relinquished rights as determined in the
reverse auction required by clause (ii)(I), of the
proceeds (including deposits and upfront payments
from successful bidders) from the use of a
competitive bidding system under this subsection.
``(ii) Limitations.--The Commission may not
enter into an agreement for a licensee to
relinquish spectrum usage rights in exchange for a
share of auction proceeds under clause (i)
unless--
``(I) the Commission conducts a
reverse auction to determine the amount
of compensation that licensees would
accept in return for voluntarily
relinquishing spectrum usage rights; and
``(II) at least two competing
licensees participate in the reverse
auction.
``(iii) Treatment of revenues.--
Notwithstanding subparagraph (A) and except as
provided in subparagraph (B), the proceeds
(including deposits and upfront payments from
successful bidders) from any auction, prior to the
end of fiscal year 2022, of spectrum usage rights
made available under clause (i) that are not
shared with licensees under such clause shall be
deposited as follows:
``(I) $1,750,000,000 of the proceeds
from the incentive auction of broadcast
television spectrum required by section
6403 of the Middle Class Tax Relief and
Job Creation Act of 2012 shall be
deposited in the TV Broadcaster
Relocation Fund established by
subsection (d)(1) of such section.
``(II) All other proceeds shall be
deposited--

[[Page 225]]

``(aa) prior to the end of
fiscal year 2022, in the Public
Safety Trust Fund established by
section 6413(a)(1) of such Act;
and
``(bb) after the end of
fiscal year 2022, in the general
fund of the Treasury, where such
proceeds shall be dedicated for
the sole purpose of deficit
reduction.
``(iv) Congressional notification.--At least 3
months before any incentive auction conducted
under this subparagraph, the Chairman of the
Commission, in consultation with the Director of
the Office of Management and Budget, shall notify
the appropriate committees of Congress of the
methodology for calculating the amounts that will
be shared with licensees under clause (i).
``(v) Definition.--In this subparagraph, the
term `appropriate committees of Congress' means--
``(I) the Committee on Commerce,
Science, and Transportation of the
Senate;
``(II) the Committee on
Appropriations of the Senate;
``(III) the Committee on Energy and
Commerce of the House of
Representatives; and
``(IV) the Committee on
Appropriations of the House of
Representatives.''.
SEC. 6403. <>  SPECIAL REQUIREMENTS FOR
INCENTIVE AUCTION OF BROADCAST TV
SPECTRUM.

(a) Reverse Auction to Identify Incentive Amount.--
(1) <>  In general.--The Commission
shall conduct a reverse auction to determine the amount of
compensation that each broadcast television licensee would
accept in return for voluntarily relinquishing some or all of
its broadcast television spectrum usage rights in order to make
spectrum available for assignment through a system of
competitive bidding under subparagraph (G) of section 309(j)(8)
of the Communications Act of 1934, as added by section 6402.
(2) Eligible relinquishments.--A relinquishment of usage
rights for purposes of paragraph (1) shall include the
following:
(A) Relinquishing all usage rights with respect to a
particular television channel without receiving in
return any usage rights with respect to another
television channel.
(B) Relinquishing all usage rights with respect to
an ultra high frequency television channel in return for
receiving usage rights with respect to a very high
frequency television channel.
(C) Relinquishing usage rights in order to share a
television channel with another licensee.
(3) Confidentiality.--The Commission shall take all
reasonable steps necessary to protect the confidentiality of
Commission-held data of a licensee participating in the reverse
auction under paragraph (1), including withholding the identity
of such licensee until the reassignments and reallocations (if
any) under subsection (b)(1)(B) become effective, as described
in subsection (f)(2).

[[Page 226]]

(4) Protection of carriage rights of licensees sharing a
channel.--A broadcast television station that voluntarily
relinquishes spectrum usage rights under this subsection in
order to share a television channel and that possessed carriage
rights under section 338, 614, or 615 of the Communications Act
of 1934 (47 U.S.C. 338; 534; 535) on November 30, 2010, shall
have, at its shared location, the carriage rights under such
section that would apply to such station at such location if it
were not sharing a channel.

(b) Reorganization of Broadcast TV Spectrum.--
(1) In general.--For purposes of making available spectrum
to carry out the forward auction under subsection (c)(1), the
Commission--
(A) shall evaluate the broadcast television spectrum
(including spectrum made available through the reverse
auction under subsection (a)(1)); and
(B) may, subject to international coordination along
the border with Mexico and Canada--
(i) make such reassignments of television
channels as the Commission considers appropriate;
and
(ii) reallocate such portions of such spectrum
as the Commission determines are available for
reallocation.
(2) Factors for consideration.--In making any reassignments
or reallocations under paragraph (1)(B), the Commission shall
make all reasonable efforts to preserve, as of the date of the
enactment of this Act, the coverage area and population served
of each broadcast television licensee, as determined using the
methodology described in OET Bulletin 69 of the Office of
Engineering and Technology of the Commission.
(3) No involuntary relocation from uhf to vhf.--In making
any reassignments under paragraph (1)(B)(i), the Commission may
not involuntarily reassign a broadcast television licensee--
(A) from an ultra high frequency television channel
to a very high frequency television channel; or
(B) from a television channel between the
frequencies from 174 megahertz to 216 megahertz to a
television channel between the frequencies from 54
megahertz to 88 megahertz.
(4) Payment of relocation costs.--
(A) In general.--Except as provided in subparagraph
(B), from amounts made available under subsection
(d)(2), the Commission shall reimburse costs reasonably
incurred by--
(i) a broadcast television licensee that was
reassigned under paragraph (1)(B)(i) from one
ultra high frequency television channel to a
different ultra high frequency television channel,
from one very high frequency television channel to
a different very high frequency television
channel, or, in accordance with subsection
(g)(1)(B), from a very high frequency television
channel to an ultra high frequency television
channel, in order for the licensee to relocate its
television service from one channel to the other;

[[Page 227]]

(ii) a multichannel video programming
distributor in order to continue to carry the
signal of a broadcast television licensee that--
(I) is described in clause (i);
(II) voluntarily relinquishes
spectrum usage rights under subsection
(a) with respect to an ultra high
frequency television channel in return
for receiving usage rights with respect
to a very high frequency television
channel; or
(III) voluntarily relinquishes
spectrum usage rights under subsection
(a) to share a television channel with
another licensee; or
(iii) a channel 37 incumbent user, in order to
relocate to other suitable spectrum, provided that
all such users can be relocated and that the total
relocation costs of such users do not exceed
$300,000,000. For the purpose of this section, the
spectrum made available through relocation of
channel 37 incumbent users shall be deemed as
spectrum reclaimed through a reverse auction under
section 6403(a).
(B) <>  Regulatory relief.--In lieu
of reimbursement for relocation costs under subparagraph
(A), a broadcast television licensee may accept, and the
Commission may grant as it considers appropriate, a
waiver of the service rules of the Commission to permit
the licensee, subject to interference protections, to
make flexible use of the spectrum assigned to the
licensee to provide services other than broadcast
television services. Such waiver shall only remain in
effect while the licensee provides at least 1 broadcast
television program stream on such spectrum at no charge
to the public.
(C) Limitation.--The Commission may not make
reimbursements under subparagraph (A) for lost revenues.
(D) Deadline.--The Commission shall make all
reimbursements required by subparagraph (A) not later
than the date that is 3 years after the completion of
the forward auction under subsection (c)(1).
(5) Low-power television usage rights.--Nothing in this
subsection shall be construed to alter the spectrum usage rights
of low-power television stations.

(c) Forward Auction.--
(1) Auction required.--The Commission shall conduct a
forward auction in which--
(A) the Commission assigns licenses for the use of
the spectrum that the Commission reallocates under
subsection (b)(1)(B)(ii); and
(B) the amount of the proceeds that the Commission
shares under clause (i) of section 309(j)(8)(G) of the
Communications Act of 1934 with each licensee whose bid
the Commission accepts in the reverse auction under
subsection (a)(1) is not less than the amount of such
bid.
(2) Minimum proceeds.--
(A) In general.--If the amount of the proceeds from
the forward auction under paragraph (1) is not greater
than the sum described in subparagraph (B), no licenses
shall be assigned through such forward auction, no
reassignments or reallocations under subsection
(b)(1)(B)

[[Page 228]]

shall become effective, and the Commission may not
revoke any spectrum usage rights by reason of a bid that
the Commission accepts in the reverse auction under
subsection (a)(1).
(B) Sum described.--The sum described in this
subparagraph is the sum of--
(i) the total amount of compensation that the
Commission must pay successful bidders in the
reverse auction under subsection (a)(1);
(ii) the costs of conducting such forward
auction that the salaries and expenses account of
the Commission is required to retain under section
309(j)(8)(B) of the Communications Act of 1934 (47
U.S.C. 309(j)(8)(B)); and
(iii) the estimated costs for which the
Commission is required to make reimbursements
under subsection (b)(4)(A).
(C) Administrative costs.--The amount of the
proceeds from the forward auction under paragraph (1)
that the salaries and expenses account of the Commission
is required to retain under section 309(j)(8)(B) of the
Communications Act of 1934 (47 U.S.C. 309(j)(8)(B))
shall be sufficient to cover the costs incurred by the
Commission in conducting the reverse auction under
subsection (a)(1), conducting the evaluation of the
broadcast television spectrum under subparagraph (A) of
subsection (b)(1), and making any reassignments or
reallocations under subparagraph (B) of such subsection,
in addition to the costs incurred by the Commission in
conducting such forward auction.
(3) Factor for consideration.--In conducting the forward
auction under paragraph (1), the Commission shall consider
assigning licenses that cover geographic areas of a variety of
different sizes.

(d) TV Broadcaster Relocation Fund.--
(1) Establishment.--There is established in the Treasury of
the United States a fund to be known as the TV Broadcaster
Relocation Fund.
(2) Payment of relocation costs.--Any amounts borrowed under
paragraph (3)(A) and any amounts in the TV Broadcaster
Relocation Fund that are not necessary for reimbursement of the
general fund of the Treasury for such borrowed amounts shall be
available to the Commission to make the payments required by
subsection (b)(4)(A).
(3) Borrowing authority.--
(A) <>  In
general.--Beginning on the date when any reassignments
or reallocations under subsection (b)(1)(B) become
effective, as provided in subsection (f)(2), and ending
when $1,000,000,000 has been deposited in the TV
Broadcaster Relocation Fund, the Commission may borrow
from the Treasury of the United States an amount not to
exceed $1,000,000,000 to use toward the payments
required by subsection (b)(4)(A).
(B) Reimbursement.--The Commission shall reimburse
the general fund of the Treasury, without interest, for
any amounts borrowed under subparagraph (A) as funds are
deposited into the TV Broadcaster Relocation Fund.

[[Page 229]]

(4) Transfer of unused funds.--If any amounts remain in the
TV Broadcaster Relocation Fund after the date that is 3 years
after the completion of the forward auction under subsection
(c)(1), the Secretary of the Treasury shall--
(A) prior to the end of fiscal year 2022, transfer
such amounts to the Public Safety Trust Fund established
by section 6413(a)(1); and
(B) after the end of fiscal year 2022, transfer such
amounts to the general fund of the Treasury, where such
amounts shall be dedicated for the sole purpose of
deficit reduction.

(e) Numerical Limitation on Auctions and Reorganization.--The
Commission may not complete more than one reverse auction under
subsection (a)(1) or more than one reorganization of the broadcast
television spectrum under subsection (b).
(f) Timing.--
(1) Contemporaneous auctions and reorganization permitted.--
The Commission may conduct the reverse auction under subsection
(a)(1), any reassignments or reallocations under subsection
(b)(1)(B), and the forward auction under subsection (c)(1) on a
contemporaneous basis.
(2) Effectiveness of reassignments and reallocations.--
Notwithstanding paragraph (1), no reassignments or reallocations
under subsection (b)(1)(B) shall become effective until the
completion of the reverse auction under subsection (a)(1) and
the forward auction under subsection (c)(1), and, to the extent
practicable, all such reassignments and reallocations shall
become effective simultaneously.
(3) Deadline.--The Commission may not conduct the reverse
auction under subsection (a)(1) or the forward auction under
subsection (c)(1) after the end of fiscal year 2022.
(4) Limit on discretion regarding auction timing.--Section
309(j)(15)(A) of the Communications Act of 1934 (47 U.S.C.
309(j)(15)(A)) shall not apply in the case of an auction
conducted under this section.

(g) Limitation on Reorganization Authority.--
(1) In general.--During the period described in paragraph
(2), the Commission may not--
(A) involuntarily modify the spectrum usage rights
of a broadcast television licensee or reassign such a
licensee to another television channel except--
(i) in accordance with this section; or
(ii) in the case of a violation by such
licensee of the terms of its license or a specific
provision of a statute administered by the
Commission, or a regulation of the Commission
promulgated under any such provision; or
(B) reassign a broadcast television licensee from a
very high frequency television channel to an ultra high
frequency television channel, unless--
(i) such a reassignment will not decrease the
total amount of ultra high frequency spectrum made
available for reallocation under this section; or
(ii) a request from such licensee for the
reassignment was pending at the Commission on May
31, 2011.

[[Page 230]]

(2) Period described.--The period described in this
paragraph is the period beginning on the date of the enactment
of this Act and ending on the earliest of--
(A) the first date when the reverse auction under
subsection (a)(1), the reassignments and reallocations
(if any) under subsection (b)(1)(B), and the forward
auction under subsection (c)(1) have been completed;
(B) the date of a determination by the Commission
that the amount of the proceeds from the forward auction
under subsection (c)(1) is not greater than the sum
described in subsection (c)(2)(B); or
(C) September 30, 2022.

(h) Protest Right Inapplicable.--The right of a licensee to protest
a proposed order of modification of its license under section 316 of the
Communications Act of 1934 (47 U.S.C. 316) shall not apply in the case
of a modification made under this section.
(i) Commission Authority.--Nothing in subsection (b) shall be
construed to--
(1) expand or contract the authority of the Commission,
except as otherwise expressly provided; or
(2) prevent the implementation of the Commission's ``White
Spaces'' Second Report and Order and Memorandum Opinion and
Order (FCC 08-260, adopted November 4, 2008) in the spectrum
that remains allocated for broadcast television use after the
reorganization required by such subsection.
SEC. 6404. CERTAIN CONDITIONS ON AUCTION PARTICIPATION PROHIBITED.

Section 309(j) of the Communications Act of 1934 (47 U.S.C. 309(j))
is amended by adding at the end the following new paragraph:
``(17) Certain conditions on auction participation
prohibited.--
``(A) In general.--Notwithstanding any other
provision of law, the Commission may not prevent a
person from participating in a system of competitive
bidding under this subsection if such person--
``(i) complies with all the auction procedures
and other requirements to protect the auction
process established by the Commission; and
``(ii) either--
``(I) meets the technical,
financial, character, and citizenship
qualifications that the Commission may
require under section 303(l)(1), 308(b),
or 310 to hold a license; or
``(II) would meet such license
qualifications by means approved by the
Commission prior to the grant of the
license.
``(B) Clarification of authority.--Nothing in
subparagraph (A) affects any authority the Commission
has to adopt and enforce rules of general applicability,
including rules concerning spectrum aggregation that
promote competition.''.
SEC. 6405. EXTENSION OF AUCTION AUTHORITY.

Section 309(j)(11) of the Communications Act of 1934 (47 U.S.C.
309(j)(11)) is amended by striking ``2012'' and inserting ``2022''.

[[Page 231]]

SEC. 6406. <>  UNLICENSED USE IN THE 5 GHZ
BAND.

(a) Modification of Commission Regulations to Allow Certain
Unlicensed Use.--
(1) <>  In general.--Subject to paragraph
(2), not later than 1 year after the date of the enactment of
this Act, the Commission shall begin a proceeding to modify part
15 of title 47, Code of Federal Regulations, to allow unlicensed
U-NII devices to operate in the 5350-5470 MHz band.
(2) Required determinations.--The Commission may make the
modification described in paragraph (1) only if the Commission,
in consultation with the Assistant Secretary, determines that--
(A) licensed users will be protected by technical
solutions, including use of existing, modified, or new
spectrum-sharing technologies and solutions, such as
dynamic frequency selection; and
(B) the primary mission of Federal spectrum users in
the 5350-5470 MHz band will not be compromised by the
introduction of unlicensed devices.

(b) Study by NTIA.--
(1) In general.--The Assistant Secretary, in consultation
with the Department of Defense and other impacted agencies,
shall conduct a study evaluating known and proposed spectrum-
sharing technologies and the risk to Federal users if unlicensed
U-NII devices were allowed to operate in the 5350-5470 MHz band
and in the 5850-5925 MHz band.
(2) <>  Submission.--The
Assistant Secretary shall submit to the Commission and the
Committee on Energy and Commerce of the House of Representatives
and the Committee on Commerce, Science, and Transportation of
the Senate--
(A) not later than 8 months after the date of the
enactment of this Act, a report on the portion of the
study required by paragraph (1) with respect to the
5350-5470 MHz band; and
(B) not later than 18 months after the date of the
enactment of this Act, a report on the portion of the
study required by paragraph (1) with respect to the
5850-5925 MHz band.

(c) Definitions.--In this section:
(1) 5350-5470 mhz band.--The term ``5350-5470 MHz band''
means the portion of the electromagnetic spectrum between the
frequencies from 5350 megahertz to 5470 megahertz.
(2) 5850-5925 mhz band.--The term ``5850-5925 MHz band''
means the portion of the electromagnetic spectrum between the
frequencies from 5850 megahertz to 5925 megahertz.
SEC. 6407. <>  GUARD BANDS AND UNLICENSED USE.

(a) In General.--Nothing in subparagraph (G) of section 309(j)(8) of
the Communications Act of 1934, as added by section 6402, or in section
6403 shall be construed to prevent the Commission from using
relinquished or other spectrum to implement band plans with guard bands.
(b) Size of Guard Bands.--Such guard bands shall be no larger than
is technically reasonable to prevent harmful interference between
licensed services outside the guard bands.

[[Page 232]]

(c) Unlicensed Use in Guard Bands.--The Commission may permit the
use of such guard bands for unlicensed use.
(d) <>  Database.--Unlicensed use shall rely
on a database or subsequent methodology as determined by the Commission.

(e) Protections Against Harmful Interference.--The Commission may
not permit any use of a guard band that the Commission determines would
cause harmful interference to licensed services.
SEC. 6408. STUDY ON RECEIVER PERFORMANCE AND SPECTRUM EFFICIENCY.

(a) In General.--The Comptroller General of the United States shall
conduct a study to consider efforts to ensure that each transmission
system is designed and operated so that reasonable use of adjacent
spectrum does not excessively impair the functioning of such system.
(b) Required Considerations.--In conducting the study required by
subsection (a), the Comptroller General shall consider--
(1) the value of--
(A) improving receiver performance as it relates to
increasing spectral efficiency;
(B) improving the operation of services that are
located in adjacent spectrum; and
(C) narrowing the guard bands between adjacent
spectrum use;
(2) the role of manufacturers, commercial licensees, and
government users with respect to their transmission systems and
the use of adjacent spectrum;
(3) the feasibility of industry self-compliance with respect
to the design and operational requirements of transmission
systems and the reasonable use of adjacent spectrum; and
(4) the value of action by the Commission and the Assistant
Secretary to establish, by rule, technical requirements or
standards for non-Federal and Federal use, respectively, with
respect to the reasonable use of portions of the radio spectrum
that are adjacent to each other.

(c) Report.--Not later than 1 year after the date of the enactment
of this Act, the Comptroller General shall submit a report on the
results of the study required by subsection (a) to the Committee on
Energy and Commerce of the House of Representatives and the Committee on
Commerce, Science, and Transportation of the Senate.
(d) Transmission System Defined.--In this section, the term
``transmission system'' means any telecommunications, broadcast,
satellite, commercial mobile service, or other communications system
that employs radio spectrum.
SEC. 6409. <>  WIRELESS FACILITIES DEPLOYMENT.

(a) Facility Modifications.--
(1) In general.--Notwithstanding section 704 of the
Telecommunications Act of 1996 (Public Law 104-104) or any other
provision of law, a State or local government may not deny, and
shall approve, any eligible facilities request for a
modification of an existing wireless tower or base station that
does not substantially change the physical dimensions of such
tower or base station.
(2) <>  Eligible facilities request.--For
purposes of this subsection, the term ``eligible facilities
request'' means any

[[Page 233]]

request for modification of an existing wireless tower or base
station that involves--
(A) collocation of new transmission equipment;
(B) removal of transmission equipment; or
(C) replacement of transmission equipment.
(3) Applicability of environmental laws.--Nothing in
paragraph (1) shall be construed to relieve the Commission from
the requirements of the National Historic Preservation Act or
the National Environmental Policy Act of 1969.

(b) Federal Easements and Rights-of-way.--
(1) Grant.--If an executive agency, a State, a political
subdivision or agency of a State, or a person, firm, or
organization applies for the grant of an easement or right-of-
way to, in, over, or on a building or other property owned by
the Federal Government for the right to install, construct, and
maintain wireless service antenna structures and equipment and
backhaul transmission equipment, the executive agency having
control of the building or other property may grant to the
applicant, on behalf of the Federal Government, an easement or
right-of-way to perform such installation, construction, and
maintenance.
(2) Application.--The Administrator of General Services
shall develop a common form for applications for easements and
rights-of-way under paragraph (1) for all executive agencies
that shall be used by applicants with respect to the buildings
or other property of each such agency.
(3) Fee.--
(A) In general.--Notwithstanding any other provision
of law, the Administrator of General Services shall
establish a fee for the grant of an easement or right-
of-way pursuant to paragraph (1) that is based on direct
cost recovery.
(B) Exceptions.--The Administrator of General
Services may establish exceptions to the fee amount
required under subparagraph (A)--
(i) in consideration of the public benefit
provided by a grant of an easement or right-of-
way; and
(ii) in the interest of expanding wireless and
broadband coverage.
(4) Use of fees collected.--Any fee amounts collected by an
executive agency pursuant to paragraph (3) may be made
available, as provided in appropriations Acts, to such agency to
cover the costs of granting the easement or right-of-way.

(c) Master Contracts for Wireless Facility Sitings.--
(1) In general.--Notwithstanding <> section
704 of the Telecommunications Act of 1996 or any other provision
of law, and not later than 60 days after the date of the
enactment of this Act, the Administrator of General Services
shall--
(A) develop 1 or more master contracts that shall
govern the placement of wireless service antenna
structures on buildings and other property owned by the
Federal Government; and
(B) in developing the master contract or contracts,
standardize the treatment of the placement of wireless
service antenna structures on building rooftops or
facades, the placement of wireless service antenna
equipment on

[[Page 234]]

rooftops or inside buildings, the technology used in
connection with wireless service antenna structures or
equipment placed on Federal buildings and other
property, and any other key issues the Administrator of
General Services considers appropriate.
(2) Applicability.--The master contract or contracts
developed by the Administrator of General Services under
paragraph (1) shall apply to all publicly accessible buildings
and other property owned by the Federal Government, unless the
Administrator of General Services decides that issues with
respect to the siting of a wireless service antenna structure on
a specific building or other property warrant nonstandard
treatment of such building or other property.
(3) Application.--The Administrator of General Services
shall develop a common form or set of forms for wireless service
antenna structure siting applications under this subsection for
all executive agencies that shall be used by applicants with
respect to the buildings and other property of each such agency.

(d) Executive Agency Defined.--In this section, the term ``executive
agency'' has the meaning given such term in section 102 of title 40,
United States Code.
SEC. 6410. FUNCTIONAL RESPONSIBILITY OF NTIA TO ENSURE EFFICIENT
USE OF SPECTRUM.

Section 103(b)(2) of the National Telecommunications and Information
Administration Organization Act (47 U.S.C. 902(b)(2)) is amended by
adding at the end the following:
``(U) The responsibility to promote the best
possible and most efficient use of electromagnetic
spectrum resources across the Federal Government,
subject to and consistent with the needs and missions of
Federal agencies.''.
SEC. 6411. <>  SYSTEM CERTIFICATION.

Not later <> than 6 months after the date of the
enactment of this Act, the Director of the Office of Management and
Budget shall update and revise section 33.4 of OMB Circular A-11 to
reflect the recommendations regarding such Circular made in the Commerce
Spectrum Management Advisory Committee Incentive Subcommittee report,
adopted January 11, 2011.
SEC. 6412. DEPLOYMENT OF 11 GHZ, 18 GHZ, AND 23 GHZ MICROWAVE
BANDS.

(a) FCC Report on Rejection Rate.--Not later than 9 months after the
date of the enactment of this Act, the Commission shall submit to the
Committee on Energy and Commerce of the House of Representatives and the
Committee on Commerce, Science, and Transportation of the Senate a
report on the rejection rate for the spectrum described in subsection
(c).
(b) GAO Study on Deployment.--
(1) In general.--The Comptroller General of the United
States shall conduct a study to assess whether the spectrum
described in subsection (c) is being deployed in such a manner
that, in areas with high demand for common carrier licenses for
the use of such spectrum, market forces--
(A) provide adequate incentive for the efficient use
of such spectrum; and

[[Page 235]]

(B) ensure that the Federal Government receives
maximum revenue for such spectrum through competitive
bidding under section 309(j) of the Communications Act
of 1934 (47 U.S.C. 309(j)).
(2) Factors for consideration.--In conducting the study
required by paragraph (1), the Comptroller General shall take
into consideration--
(A) spectrum that is adjacent to the spectrum
described in subsection (c) and that was assigned
through competitive bidding under section 309(j) of the
Communications Act of 1934; and
(B) the rejection rate for the spectrum described in
subsection (c), current as of the time of the assessment
and as projected for the future, in markets in which
there is a high demand for common carrier licenses for
the use of such spectrum.
(3) Report.--Not later than 9 months after the date of the
enactment of this Act, the Comptroller General shall submit a
report on the study required by paragraph (1) to--
(A) the Commission; and
(B) the Committee on Energy and Commerce of the
House of Representatives and the Committee on Commerce,
Science, and Transportation of the Senate.

(c) Spectrum Described.--The spectrum described in this subsection
is the portions of the electromagnetic spectrum between the frequencies
from 10,700 megahertz to 11,700 megahertz, from 17,700 megahertz to
19,700 megahertz, and from 21,200 megahertz to 23,600 megahertz.
(d) Rejection Rate Defined.--In this section, the term ``rejection
rate'' means the number and percent of applications (whether made to the
Commission or to a third-party coordinator) for common carrier use of
spectrum that were not granted because of lack of availability of such
spectrum or interference concerns of existing licensees.
(e) No Additional Funds Authorized.--Funds necessary to carry out
this section shall be derived from funds otherwise authorized to be
appropriated.
SEC. 6413. <>  PUBLIC SAFETY TRUST FUND.

(a) Establishment of Public Safety Trust Fund.--
(1) In general.--There is established in the Treasury of the
United States a trust fund to be known as the Public Safety
Trust Fund.
(2) Availability.--Amounts deposited in the Public Safety
Trust Fund shall remain available through fiscal year 2022. Any
amounts remaining in the Fund after the end of such fiscal year
shall be deposited in the general fund of the Treasury, where
such amounts shall be dedicated for the sole purpose of deficit
reduction.

(b) Use of Fund.--As amounts are deposited in the Public Safety
Trust Fund, such amounts shall be used to make the following deposits or
payments in the following order of priority:
(1) Repayment of amount borrowed for first responder network
authority.--An amount not to exceed $2,000,000,000 shall be
available to the NTIA to reimburse the general fund of the
Treasury for any amounts borrowed under section 6207.

[[Page 236]]

(2) State and local implementation fund.--$135,000,000 shall
be deposited in the State and Local Implementation Fund
established by section 6301.
(3) Buildout by first responder network authority.--
$7,000,000,000, reduced by the amount borrowed under section
6207, shall be deposited in the Network Construction Fund
established by section 6206.
(4) Public safety research.--$100,000,000 shall be available
to the Director of NIST to carry out section 6303.
(5) Deficit reduction.--$20,400,000,000 shall be deposited
in the general fund of the Treasury, where such amount shall be
dedicated for the sole purpose of deficit reduction.
(6) 9-1-1, e9-1-1, and next generation 9-1-1 implementation
grants.--$115,000,000 shall be available to the Assistant
Secretary and the Administrator of the National Highway Traffic
Safety Administration to carry out the grant program under
section 158 of the National Telecommunications and Information
Administration Organization Act, as amended by section 6503 of
this title.
(7) Additional public safety research.--$200,000,000 shall
be available to the Director of NIST to carry out section 6303.
(8) Additional deficit reduction.--Any remaining amounts
deposited in the Public Safety Trust Fund shall be deposited in
the general fund of the Treasury, where such amounts shall be
dedicated for the sole purpose of deficit reduction.

(c) Investment.--Amounts in the Public Safety Trust Fund shall be
invested in accordance with section 9702 of title 31, United States
Code, and any interest on, and proceeds from, any such investment shall
be credited to, and become a part of, the Fund.
SEC. 6414. STUDY ON EMERGENCY COMMUNICATIONS BY AMATEUR RADIO AND
IMPEDIMENTS TO AMATEUR RADIO
COMMUNICATIONS.

(a) In General.--Not <> later than 180 days after
the date of the enactment of this Act, the Commission, in consultation
with the Office of Emergency Communications in the Department of
Homeland Security, shall--
(1) complete a study on the uses and capabilities of amateur
radio service communications in emergencies and disaster relief;
and
(2) <>  submit to the Committee on Energy
and Commerce of the House of Representatives and the Committee
on Commerce, Science, and Transportation of the Senate a report
on the findings of such study.

(b) Contents.--The study required by subsection (a) shall include--
(1)(A) a review of the importance of emergency amateur radio
service communications relating to disasters, severe weather,
and other threats to lives and property in the United States;
and
(B) recommendations for--
(i) enhancements in the voluntary deployment of
amateur radio operators in disaster and emergency
communications and disaster relief efforts; and

[[Page 237]]

(ii) improved integration of amateur radio operators
in the planning and furtherance of initiatives of the
Federal Government; and
(2)(A) an identification of impediments to enhanced amateur
radio service communications, such as the effects of
unreasonable or unnecessary private land use restrictions on
residential antenna installations; and
(B) recommendations regarding the removal of such
impediments.

(c) Expertise.--In conducting the study required by subsection (a),
the Commission shall use the expertise of stakeholder entities and
organizations, including the amateur radio, emergency response, and
disaster communications communities.

Subtitle E--Next <> Generation 9-1-1 Advancement Act of 2012
SEC. <> 6501. SHORT TITLE.

This subtitle may be cited as the ``Next Generation 9-1-1
Advancement Act of 2012''.
SEC. <> 6502. DEFINITIONS.

In this subtitle, the following definitions shall apply:
(1) 9-1-1 services and e9-1-1 services.--The terms ``9-1-1
services'' and ``E9-1-1 services'' shall have the meaning given
those terms in section 158 of the National Telecommunications
and Information Administration Organization Act (47 U.S.C. 942),
as amended by this subtitle.
(2) Multi-line telephone system.--The term ``multi-line
telephone system'' or ``MLTS'' means a system comprised of
common control units, telephone sets, control hardware and
software and adjunct systems, including network and premises
based systems, such as Centrex and VoIP, as well as PBX, Hybrid,
and Key Telephone Systems (as classified by the Commission under
part 68 of title 47, Code of Federal Regulations), and includes
systems owned or leased by governmental agencies and non-profit
entities, as well as for profit businesses.
(3) Office.--The term ``Office'' means the 9-1-1
Implementation Coordination Office established under section 158
of the National Telecommunications and Information
Administration Organization Act (47 U.S.C. 942), as amended by
this subtitle.
SEC. 6503. COORDINATION OF 9-1-1 IMPLEMENTATION.

Section 158 of the National Telecommunications and Information
Administration Organization Act (47 U.S.C. 942) is amended to read as
follows:
``SEC. 158. COORDINATION OF 9-1-1, E9-1-1, AND NEXT GENERATION 9-
1-1 IMPLEMENTATION.

``(a) 9-1-1 Implementation Coordination Office.--
``(1) Establishment and continuation.--The Assistant
Secretary and the Administrator of the National Highway Traffic
Safety Administration shall--
``(A) establish and further a program to facilitate
coordination and communication between Federal, State,

[[Page 238]]

and local emergency communications systems, emergency
personnel, public safety organizations,
telecommunications carriers, and telecommunications
equipment manufacturers and vendors involved in the
implementation of 9-1-1 services; and
``(B) establish a 9-1-1 Implementation Coordination
Office to implement the provisions of this section.
``(2) Management plan.--
``(A) Development.--The Assistant Secretary and the
Administrator shall develop a management plan for the
grant program established under this section, including
by developing--
``(i) plans related to the organizational
structure of such program; and
``(ii) funding profiles for each fiscal year
of the duration of such program.
``(B) Submission to congress.--
Not <> later than 90 days after the
date of enactment of the Next Generation 9-1-1
Advancement Act of 2012, the Assistant Secretary and the
Administrator shall submit the management plan developed
under subparagraph (A) to--
``(i) the Committees on Commerce, Science, and
Transportation and Appropriations of the Senate;
and
``(ii) the Committees on Energy and Commerce
and Appropriations of the House of
Representatives.
``(3) Purpose of office.--The Office shall--
``(A) take actions, in concert with coordinators
designated in accordance with subsection (b)(3)(A)(ii),
to improve coordination and communication with respect
to the implementation of 9-1-1 services, E9-1-1
services, and Next Generation 9-1-1 services;
``(B) develop, collect, and disseminate information
concerning practices, procedures, and technology used in
the implementation of 9-1-1 services, E9-1-1 services,
and Next Generation 9-1-1 services;
``(C) advise and assist eligible entities in the
preparation of implementation plans required under
subsection (b)(3)(A)(iii);
``(D) receive, review, and recommend the approval or
disapproval of applications for grants under subsection
(b); and
``(E) oversee the use of funds provided by such
grants in fulfilling such implementation plans.
``(4) Reports.--The Assistant Secretary and the
Administrator shall provide an annual report to Congress by the
first day of October of each year on the activities of the
Office to improve coordination and communication with respect to
the implementation of 9-1-1 services, E9-1-1 services, and Next
Generation 9-1-1 services.

``(b) 9-1-1, E9-1-1, and Next Generation 9-1-1 Implementation
Grants.--
``(1) Matching grants.--The Assistant Secretary and the
Administrator, acting through the Office, shall provide grants
to eligible entities for--

[[Page 239]]

``(A) the implementation and operation of 9-1-1
services, E9-1-1 services, migration to an IP-enabled
emergency network, and adoption and operation of Next
Generation 9-1-1 services and applications;
``(B) the implementation of IP-enabled emergency
services and applications enabled by Next Generation 9-
1-1 services, including the establishment of IP backbone
networks and the application layer software
infrastructure needed to interconnect the multitude of
emergency response organizations; and
``(C) training public safety personnel, including
call-takers, first responders, and other individuals and
organizations who are part of the emergency response
chain in 9-1-1 services.
``(2) Matching requirement.--The Federal share of the cost
of a project eligible for a grant under this section shall not
exceed 60 percent.
``(3) Coordination required.--
In <> providing grants under paragraph
(1), the Assistant Secretary and the Administrator shall require
an eligible entity to certify in its application that--
``(A) in the case of an eligible entity that is a
State government, the entity--
``(i) has coordinated its application with the
public safety answering points located within the
jurisdiction of such entity;
``(ii) has designated a single officer or
governmental body of the entity to serve as the
coordinator of implementation of 9-1-1 services,
except that such designation need not vest such
coordinator with direct legal authority to
implement 9-1-1 services, E9-1-1 services, or Next
Generation 9-1-1 services or to manage emergency
communications operations;
``(iii) has established a plan for the
coordination and implementation of 9-1-1 services,
E9-1-1 services, and Next Generation 9-1-1
services; and
``(iv) has integrated telecommunications
services involved in the implementation and
delivery of 9-1-1 services, E9-1-1 services, and
Next Generation 9-1-1 services; or
``(B) in the case of an eligible entity that is not
a State, the entity has complied with clauses (i),
(iii), and (iv) of subparagraph (A), and the State in
which it is located has complied with clause (ii) of
such subparagraph.
``(4) Criteria.--Not <> later than 120 days after the date of enactment of
the Next Generation 9-1-1 Advancement Act of 2012, the Assistant
Secretary and the Administrator shall issue regulations, after
providing the public with notice and an opportunity to comment,
prescribing the criteria for selection for grants under this
section. The criteria shall include performance requirements and
a timeline for completion of any project to be financed by a
grant under this section. The Assistant Secretary and the
Administrator shall update such regulations as necessary.

``(c) Diversion of 9-1-1 Charges.--
``(1) Designated 9-1-1 charges.--For
the <> purposes of this subsection, the term
`designated 9-1-1 charges' means any

[[Page 240]]

taxes, fees, or other charges imposed by a State or other taxing
jurisdiction that are designated or presented as dedicated to
deliver or improve 9-1-1 services, E9-1-1 services, or Next
Generation 9-1-1 services.
``(2) Certification.--Each <> applicant
for a matching grant under this section shall certify to the
Assistant Secretary and the Administrator at the time of
application, and each applicant that receives such a grant shall
certify to the Assistant Secretary and the Administrator
annually thereafter during any period of time during which the
funds from the grant are available to the applicant, that no
portion of any designated 9-1-1 charges imposed by a State or
other taxing jurisdiction within which the applicant is located
are being obligated or expended for any purpose other than the
purposes for which such charges are designated or presented
during the period beginning 180 days immediately preceding the
date of the application and continuing through the period of
time during which the funds from the grant are available to the
applicant.
``(3) Condition of grant.--Each applicant for a grant under
this section shall agree, as a condition of receipt of the
grant, that if the State or other taxing jurisdiction within
which the applicant is located, during any period of time during
which the funds from the grant are available to the applicant,
obligates or expends designated 9-1-1 charges for any purpose
other than the purposes for which such charges are designated or
presented, eliminates such charges, or redesignates such charges
for purposes other than the implementation or operation of 9-1-1
services, E9-1-1 services, or Next Generation 9-1-1 services,
all of the funds from such grant shall be returned to the
Office.
``(4) Penalty for providing false information.--Any
applicant that provides a certification under paragraph (2)
knowing that the information provided in the certification was
false shall--
``(A) not be eligible to receive the grant under
subsection (b);
``(B) return any grant awarded under subsection (b)
during the time that the certification was not valid;
and
``(C) not be eligible to receive any subsequent
grants under subsection (b).

``(d) Funding and Termination.--
``(1) In general.--From the amounts made available to the
Assistant Secretary and the Administrator under section
6413(b)(6) of the Middle Class Tax Relief and Job Creation Act
of 2012, the Assistant Secretary and the Administrator are
authorized to provide grants under this section through the end
of fiscal year 2022. Not more than 5 percent of such amounts may
be obligated or expended to cover the administrative costs of
carrying out this section.
``(2) Termination.--Effective on October 1, 2022, the
authority provided by this section terminates and this section
shall have no effect.

``(e) Definitions.--In this <> section, the
following definitions shall apply:
``(1) 9-1-1 services.--The term `9-1-1 services' includes
both E9-1-1 services and Next Generation 9-1-1 services.

[[Page 241]]

``(2) E9-1-1 services.--The term `E9-1-1 services' means
both phase I and phase II enhanced 9-1-1 services, as described
in section 20.18 of the Commission's regulations (47 C.F.R.
20.18), as in effect on the date of enactment of the Next
Generation 9-1-1 Advancement Act of 2012, or as subsequently
revised by the Commission.
``(3) Eligible entity.--
``(A) In general.--The term `eligible entity' means
a State or local government or a tribal organization (as
defined in section 4(l) of the Indian Self-Determination
and Education Assistance Act (25 U.S.C. 450b(l))).
``(B) Instrumentalities.--The term `eligible entity'
includes public authorities, boards, commissions, and
similar bodies created by one or more eligible entities
described in subparagraph (A) to provide 9-1-1 services,
E9-1-1 services, or Next Generation 9-1-1 services.
``(C) Exception.--The term `eligible entity' does
not include any entity that has failed to submit the
most recently required certification under subsection
(c) within 30 days after the date on which such
certification is due.
``(4) Emergency call.--The term `emergency call' refers to
any real-time communication with a public safety answering point
or other emergency management or response agency, including--
``(A) through voice, text, or video and related
data; and
``(B) nonhuman-initiated automatic event alerts,
such as alarms, telematics, or sensor data, which may
also include real-time voice, text, or video
communications.
``(5) Next generation 9-1-1 services.--The term `Next
Generation 9-1-1 services' means an IP-based system comprised of
hardware, software, data, and operational policies and
procedures that--
``(A) provides standardized interfaces from
emergency call and message services to support emergency
communications;
``(B) processes all types of emergency calls,
including voice, data, and multimedia information;
``(C) acquires and integrates additional emergency
call data useful to call routing and handling;
``(D) delivers the emergency calls, messages, and
data to the appropriate public safety answering point
and other appropriate emergency entities;
``(E) supports data or video communications needs
for coordinated incident response and management; and
``(F) provides broadband service to public safety
answering points or other first responder entities.
``(6) Office.--The term `Office' means the 9-1-1
Implementation Coordination Office.
``(7) Public safety answering point.--The term `public
safety answering point' has the meaning given the term in
section 222 of the Communications Act of 1934 (47 U.S.C. 222).
``(8) State.--The term `State' means any State of the United
States, the District of Columbia, Puerto Rico, American Samoa,
Guam, the United States Virgin Islands, the Northern

[[Page 242]]

Mariana Islands, and any other territory or possession of the
United States.''.
SEC. <> 6504. REQUIREMENTS FOR MULTI-LINE
TELEPHONE SYSTEMS.

(a) In General.--Not <> later than 270 days after
the date of the enactment of this Act, the Administrator of General
Services, in conjunction with the Office, shall issue a report to
Congress identifying the 9-1-1 capabilities of the multi-line telephone
system in use by all Federal agencies in all Federal buildings and
properties.

(b) Commission Action.--
(1) In general.--Not <> later than 90 days
after the date of the enactment of this Act, the Commission
shall issue a public notice seeking comment on the feasibility
of MLTS manufacturers including within all such systems
manufactured or sold after a date certain, to be determined by
the Commission, one or more mechanisms to provide a sufficiently
precise indication of a 9-1-1 caller's location, while avoiding
the imposition of undue burdens on MLTS manufacturers,
providers, and operators.
(2) Specific requirement.--The public notice under paragraph
(1) shall seek comment on the National Emergency Number
Association's ``Technical Requirements Document On Model
Legislation E9-1-1 for Multi-Line Telephone Systems'' (NENA 06-
750, Version 2).
SEC. 6505. GAO STUDY OF STATE AND LOCAL USE OF 9-1-1 SERVICE
CHARGES.

(a) In General.--Not <> later than 60 days after
the date of the enactment of this Act, the Comptroller General of the
United States shall initiate a study of--
(1) the imposition of taxes, fees, or other charges imposed
by States or political subdivisions of States that are
designated or presented as dedicated to improve emergency
communications services, including 9-1-1 services or enhanced 9-
1-1 services, or related to emergency communications services
operations or improvements; and
(2) the use of revenues derived from such taxes, fees, or
charges.

(b) Report.--Not later than 18 months after initiating the study
required by subsection (a), the Comptroller General shall prepare and
submit a report on the results of the study to the Committee on
Commerce, Science, and Transportation of the Senate and the Committee on
Energy and Commerce of the House of Representatives setting forth the
findings, conclusions, and recommendations, if any, of the study,
including--
(1) the identity of each State or political subdivision that
imposes such taxes, fees, or other charges; and
(2) the amount of revenues obligated or expended by that
State or political subdivision for any purpose other than the
purposes for which such taxes, fees, or charges were designated
or presented.
SEC. <> 6506. PARITY OF PROTECTION FOR
PROVISION OR USE OF NEXT GENERATION 9-1-
1 SERVICES.

(a) Immunity.--A provider or user of Next Generation 9-1-1 services,
a public safety answering point, and the officers, directors, employees,
vendors, agents, and authorizing government entity

[[Page 243]]

(if any) of such provider, user, or public safety answering point, shall
have immunity and protection from liability under Federal and State law
to the extent provided in subsection (b) with respect to--
(1) the release of subscriber information related to
emergency calls or emergency services;
(2) the use or provision of 9-1-1 services, E9-1-1 services,
or Next Generation 9-1-1 services; and
(3) other matters related to 9-1-1 services, E9-1-1
services, or Next Generation 9-1-1 services.

(b) Scope of Immunity and Protection From Liability.--The scope and
extent of the immunity and protection from liability afforded under
subsection (a) shall be the same as that provided under section 4 of the
Wireless Communications and Public Safety Act of 1999 (47 U.S.C. 615a)
to wireless carriers, public safety answering points, and users of
wireless 9-1-1 service (as defined in paragraphs (4), (3), and (6),
respectively, of section 6 of that Act (47 U.S.C. 615b)) with respect to
such release, use, and other matters.
SEC. <> 6507. COMMISSION PROCEEDING ON
AUTODIALING.

(a) In General.--Not <> later than 90 days after
the date of the enactment of this Act, the Commission shall initiate a
proceeding to create a specialized Do-Not-Call registry for public
safety answering points.

(b) Features of the Registry.--
The <> Commission shall issue regulations,
after providing the public with notice and an opportunity to comment,
that--
(1) permit verified public safety answering point
administrators or managers to register the telephone numbers of
all 9-1-1 trunks and other lines used for the provision of
emergency services to the public or for communications between
public safety agencies;
(2) provide a process for verifying, no less frequently than
once every 7 years, that registered numbers should continue to
appear upon the registry;
(3) provide a process for granting and tracking access to
the registry by the operators of automatic dialing equipment;
(4) protect the list of registered numbers from disclosure
or dissemination by parties granted access to the registry; and
(5) prohibit the use of automatic dialing or ``robocall''
equipment to establish contact with registered numbers.

(c) Enforcement.--The <> Commission shall--
(1) establish monetary penalties for violations of the
protective regulations established pursuant to subsection (b)(4)
of not less than $100,000 per incident nor more than $1,000,000
per incident;
(2) establish monetary penalties for violations of the
prohibition on automatically dialing registered numbers
established pursuant to subsection (b)(5) of not less than
$10,000 per call nor more than $100,000 per call; and
(3) provide for the imposition of fines under paragraphs (1)
or (2) that vary depending upon whether the conduct leading to
the violation was negligent, grossly negligent, reckless, or
willful, and depending on whether the violation was a first or
subsequent offence.

[[Page 244]]

SEC. 6508. REPORT ON COSTS FOR REQUIREMENTS AND SPECIFICATIONS OF
NEXT GENERATION 9-1-1 SERVICES.

(a) In General.--Not later than 1 year after the date of the
enactment of this Act, the Office, in consultation with the
Administrator of the National Highway Traffic Safety Administration, the
Commission, and the Secretary of Homeland Security, shall prepare and
submit a report to Congress that analyzes and determines detailed costs
for specific Next Generation 9-1-1 service requirements and
specifications.
(b) Purpose of Report.--The purpose of the report required under
subsection (a) is to serve as a resource for Congress as it considers
creating a coordinated, long-term funding mechanism for the deployment
and operation, accessibility, application development, equipment
procurement, and training of personnel for Next Generation 9-1-1
services.
(c) Required Inclusions.--The report required under subsection (a)
shall include the following:
(1) How costs would be broken out geographically and
allocated among public safety answering points, broadband
service providers, and third-party providers of Next Generation
9-1-1 services.
(2) An assessment of the current state of Next Generation 9-
1-1 service readiness among public safety answering points.
(3) How differences in public safety answering points'
access to broadband across the United States may affect costs.
(4) A technical analysis and cost study of different
delivery platforms, such as wireline, wireless, and satellite.
(5) An assessment of the architectural characteristics,
feasibility, and limitations of Next Generation 9-1-1 service
delivery.
(6) An analysis of the needs for Next Generation 9-1-1
services of persons with disabilities.
(7) Standards and protocols for Next Generation 9-1-1
services and for incorporating Voice over Internet Protocol and
``Real-Time Text'' standards.
SEC. 6509. COMMISSION RECOMMENDATIONS FOR LEGAL AND STATUTORY
FRAMEWORK FOR NEXT GENERATION 9-1-1
SERVICES.

Not <> later than 1 year after the date of
the enactment of this Act, the Commission, in coordination with the
Secretary of Homeland Security, the Administrator of the National
Highway Traffic Safety Administration, and the Office, shall prepare and
submit a report to Congress that contains recommendations for the legal
and statutory framework for Next Generation 9-1-1 services, consistent
with recommendations in the National Broadband Plan developed by the
Commission pursuant to the American Recovery and Reinvestment Act of
2009, including the following:
(1) A legal and regulatory framework for the development of
Next Generation 9-1-1 services and the transition from legacy 9-
1-1 to Next Generation 9-1-1 networks.
(2) Legal mechanisms to ensure efficient and accurate
transmission of 9-1-1 caller information to emergency response
agencies.
(3) Recommendations for removing jurisdictional barriers and
inconsistent legacy regulations including--

[[Page 245]]

(A) proposals that would require States to remove
regulatory roadblocks to Next Generation 9-1-1 services
development, while recognizing existing State authority
over 9-1-1 services;
(B) eliminating outdated 9-1-1 regulations at the
Federal level; and
(C) preempting inconsistent State regulations.

Subtitle F--Telecommunications Development Fund

SEC. 6601. NO ADDITIONAL FEDERAL FUNDS.

Section 309(j)(8)(C)(iii) of the Communications Act of 1934 (47
U.S.C. 309(j)(8)(C)(iii)) is amended to read as follows:
``(iii) the interest accrued to the account
shall be deposited in the general fund of the
Treasury, where such amount shall be dedicated for
the sole purpose of deficit reduction.''.
SEC. 6602. INDEPENDENCE OF THE FUND.

Section 714 of the Communications Act of 1934 (47 U.S.C. 614) is
amended--
(1) by striking subsection (c) and inserting the following:

``(c) Independent Board of Directors.--The Fund shall have a Board
of Directors consisting of 5 people with experience in areas including
finance, investment banking, government banking, communications law and
administrative practice, and public policy.
The <> Board of Directors shall select annually a Chair
from among the directors. A <> nominating
committee, comprised of the Chair and 2 other directors selected by the
Chair, shall appoint additional directors. The Fund's bylaws shall
regulate the other aspects of the Board of Directors, including
provisions relating to meetings, quorums, committees, and other matters,
all as typically contained in the bylaws of a similar private investment
fund.'';
(2) in subsection (d)--
(A) by striking ``(after consultation with the
Commission and the Secretary of the Treasury)'';
(B) by striking paragraph (1); and
(C) by redesignating paragraphs (2) through (4) as
paragraphs (1) through (3), respectively; and
(3) in subsection (g), by striking ``subsection (d)(2)'' and
inserting ``subsection (d)(1)''.

Subtitle G--Federal Spectrum Relocation

SEC. 6701. RELOCATION OF AND SPECTRUM SHARING BY FEDERAL
GOVERNMENT STATIONS.

(a) In General.--Section 113 of the National Telecommunications and
Information Administration Organization Act (47 U.S.C. 923) is amended--
(1) in subsection (g)--
(A) by striking the heading and inserting
``Relocation of and Spectrum Sharing by Federal
Government Stations.--'';
(B) by amending paragraph (1) to read as follows:

[[Page 246]]

``(1) Eligible federal entities.--Any Federal entity that
operates a Federal Government station authorized to use a band
of eligible frequencies described in paragraph (2) and that
incurs relocation or sharing costs because of planning for an
auction of spectrum frequencies or the reallocation of spectrum
frequencies from Federal use to exclusive non-Federal use or to
shared use shall receive payment for such relocation or sharing
costs from the Spectrum Relocation Fund, in accordance with this
section and section 118. For purposes of this paragraph, Federal
power agencies exempted under subsection (c)(4) that choose to
relocate from the frequencies identified for reallocation
pursuant to subsection (a) are eligible to receive payment under
this paragraph.'';
(C) by amending paragraph (2)(B) to read as follows:
``(B) any other band of frequencies reallocated from
Federal use to non-Federal use or to shared use after
January 1, 2003, that is assigned by competitive bidding
pursuant to section 309(j) of the Communications Act of
1934 (47 U.S.C. 309(j)).'';
(D) by amending paragraph (3) to read as follows:
``(3) Relocation or sharing costs defined.--
``(A) In general.--For purposes of this section and
section 118, the term `relocation or sharing costs'
means the costs incurred by a Federal entity in
connection with the auction of spectrum frequencies
previously assigned to such entity or the sharing of
spectrum frequencies assigned to such entity (including
the auction or a planned auction of the rights to use
spectrum frequencies on a shared basis with such entity)
in order to achieve comparable capability of systems as
before the relocation or sharing arrangement. Such term
includes, with respect to relocation or sharing, as the
case may be--
``(i) the costs of any modification or
replacement of equipment, spares, associated
ancillary equipment, software, facilities,
operating manuals, training, or compliance with
regulations that are attributable to relocation or
sharing;
``(ii) the costs of all engineering,
equipment, software, site acquisition, and
construction, as well as any legitimate and
prudent transaction expense, including term-
limited Federal civil servant and contractor staff
necessary to carry out the relocation or sharing
activities of a Federal entity, and reasonable
additional costs incurred by the Federal entity
that are attributable to relocation or sharing,
including increased recurring costs associated
with the replacement of facilities;
``(iii) the costs of research, engineering
studies, economic analyses, or other expenses
reasonably incurred in connection with--
``(I) calculating the estimated
relocation or sharing costs that are
provided to the Commission pursuant to
paragraph (4)(A);
``(II) determining the technical or
operational feasibility of relocation to
1 or more potential relocation bands; or

[[Page 247]]

``(III) planning for or managing a
relocation or sharing arrangement
(including spectrum coordination with
auction winners);
``(iv) the one-time costs of any modification
of equipment reasonably necessary--
``(I) to accommodate non-Federal use
of shared frequencies; or
``(II) in the case of eligible
frequencies reallocated for exclusive
non-Federal use and assigned through a
system of competitive bidding under
section 309(j) of the Communications Act
of 1934 (47 U.S.C. 309(j)) but with
respect to which a Federal entity
retains primary allocation or protected
status for a period of time after the
completion of the competitive bidding
process, to accommodate shared Federal
and non-Federal use of such frequencies
for such period; and
``(v) the costs associated with the
accelerated replacement of systems and equipment
if the acceleration is necessary to ensure the
timely relocation of systems to a new frequency
assignment or the timely accommodation of sharing
of Federal frequencies.
``(B) Comparable capability of systems.--For
purposes of subparagraph (A), comparable capability of
systems--
``(i) may be achieved by relocating a Federal
Government station to a new frequency assignment,
by relocating a Federal Government station to a
different geographic location, by modifying
Federal Government equipment to mitigate
interference or use less spectrum, in terms of
bandwidth, geography, or time, and thereby
permitting spectrum sharing (including sharing
among relocated Federal entities and incumbents to
make spectrum available for non-Federal use) or
relocation, or by utilizing an alternative
technology; and
``(ii) includes the acquisition of state-of-
the-art replacement systems intended to meet
comparable operational scope, which may include
incidental increases in functionality.'';
(E) in paragraph (4)--
(i) in the heading, by striking ``relocations
costs'' and inserting ``relocation or sharing
costs'';
(ii) by striking ``relocation costs'' each
place it appears and inserting ``relocation or
sharing costs''; and
(iii) in subparagraph (A), by inserting ``or
sharing'' after ``such relocation'';
(F) in paragraph (5)--
(i) by striking ``relocation costs'' and
inserting ``relocation or sharing costs''; and
(ii) by inserting ``or sharing'' after ``for
relocation''; and
(G) by amending paragraph (6) to read as follows:
``(6) Implementation of procedures.--The NTIA shall take
such actions as necessary to ensure the timely relocation

[[Page 248]]

of Federal entities' spectrum-related operations from
frequencies described in paragraph (2) to frequencies or
facilities of comparable capability and to ensure the timely
implementation of arrangements for the sharing of frequencies
described in such
paragraph. <> Upon a finding
by the NTIA that a Federal entity has achieved comparable
capability of systems, the NTIA shall terminate or limit the
entity's authorization and notify the Commission that the
entity's relocation has been completed or sharing arrangement
has been implemented. <> The
NTIA shall also terminate such entity's authorization if the
NTIA determines that the entity has unreasonably failed to
comply with the timeline for relocation or sharing submitted by
the Director of the Office of Management and Budget under
section 118(d)(2)(C).'';
(2) by redesignating subsections (h) and (i) as subsections
(k) and (l), respectively; and
(3) by inserting after subsection (g) the following:

``(h) Development and Publication of Relocation or Sharing
Transition Plans.--
``(1) Development of transition plan by federal entity.--
Not <> later than 240 days before the
commencement of any auction of eligible frequencies described in
subsection (g)(2), a Federal entity authorized to use any such
frequency shall submit to the NTIA and to the Technical Panel
established by paragraph (3) a transition plan for the
implementation by such entity of the relocation or sharing
arrangement. <> The NTIA shall specify,
after public input, a common format for all Federal entities to
follow in preparing transition plans under this paragraph.
``(2) Contents of transition plan.--The transition plan
required by paragraph (1) shall include the following
information:
``(A) The use by the Federal entity of the eligible
frequencies to be auctioned, current as of the date of
the submission of the plan.
``(B) The geographic location of the facilities or
systems of the Federal entity that use such frequencies.
``(C) The frequency bands used by such facilities or
systems, described by geographic location.
``(D) The steps to be taken by the Federal entity to
relocate its spectrum use from such frequencies or to
share such frequencies, including timelines for specific
geographic locations in sufficient detail to indicate
when use of such frequencies at such locations will be
discontinued by the Federal entity or shared between the
Federal entity and non-Federal users.
``(E) The specific interactions between the eligible
Federal entity and the NTIA needed to implement the
transition plan.
``(F) The name of the officer or employee of the
Federal entity who is responsible for the relocation or
sharing efforts of the entity and who is authorized to
meet and negotiate with non-Federal users regarding the
transition.
``(G) The plans and timelines of the Federal entity
for--
``(i) using funds received from the Spectrum
Relocation Fund established by section 118;

[[Page 249]]

``(ii) procuring new equipment and additional
personnel needed for relocation or sharing;
``(iii) field-testing and deploying new
equipment needed for relocation or sharing; and
``(iv) hiring and relying on contract
personnel, if any, needed for relocation or
sharing.
``(H) Factors that could hinder fulfillment of the
transition plan by the Federal entity.
``(3) Technical panel.--
``(A) Establishment.--There is established within
the NTIA a panel to be known as the Technical Panel.
``(B) Membership.--
``(i) Number and appointment.--The Technical
Panel shall be composed of 3 members, to be
appointed as follows:
``(I) One member to be appointed by
the Director of the Office of Management
and Budget (in this subsection referred
to as `OMB').
``(II) One member to be appointed by
the Assistant Secretary.
``(III) One member to be appointed
by the Chairman of the Commission.
``(ii) Qualifications.--Each member of the
Technical Panel shall be a radio engineer or a
technical expert.
``(iii) Initial appointment.--
The <> initial members of the
Technical Panel shall be appointed not later than
180 days after the date of the enactment of the
Middle Class Tax Relief and Job Creation Act of
2012.
``(iv) Terms.--The term of a member of the
Technical Panel shall be 18 months, and no
individual may serve more than 1 consecutive term.
``(v) Vacancies.--Any member appointed to fill
a vacancy occurring before the expiration of the
term for which the member's predecessor was
appointed shall be appointed only for the
remainder of that term. A member may serve after
the expiration of that member's term until a
successor has taken office. A vacancy shall be
filled in the manner in which the original
appointment was made.
``(vi) No compensation.--The members of the
Technical Panel shall not receive any compensation
for service on the Technical Panel. If any such
member is an employee of the agency of the
official that appointed such member to the
Technical Panel, compensation in the member's
capacity as such an employee shall not be
considered compensation under this clause.
``(C) Administrative support.--The NTIA shall
provide the Technical Panel with the administrative
support services necessary to carry out its duties under
this subsection and subsection (i).
``(D) Regulations.--
Not <> later
than 180 days after the date of the enactment of the
Middle Class Tax Relief and Job Creation Act of 2012,
the NTIA shall, after public notice and comment and
subject to approval by the Director

[[Page 250]]

of OMB, adopt regulations to govern the workings of the
Technical Panel.
``(E) Certain requirements inapplicable.--The
Federal Advisory Committee Act (5 U.S.C. App.) and
sections 552 and 552b of title 5, United States Code,
shall not apply to the Technical Panel.
``(4) <>  Review of plan by
technical panel.--
``(A) In general.--Not later than 30 days after the
submission of the plan under paragraph (1), the
Technical Panel shall submit to the NTIA and to the
Federal entity a report on the sufficiency of the plan,
including whether the plan includes the information
required by paragraph (2) and an assessment of the
reasonableness of the proposed timelines and estimated
relocation or sharing costs, including the costs of any
proposed expansion of the capabilities of a Federal
system in connection with relocation or sharing.
``(B) Insufficiency of plan.--If the Technical Panel
finds the plan insufficient, the Federal entity shall,
not later than 90 days after the submission of the
report by the Technical Panel under subparagraph (A),
submit to the Technical Panel a revised plan. Such
revised plan shall be treated as a plan submitted under
paragraph (1).
``(5) Publication of transition plan.--
Not <> later
than 120 days before the commencement of the auction described
in paragraph (1), the NTIA shall make the transition plan
publicly available on its website.
``(6) Updates of transition plan.--As the Federal entity
implements the transition plan, it shall periodically update the
plan to reflect any changed circumstances, including changes in
estimated relocation or sharing costs or the timeline for
relocation or sharing. The NTIA shall make the updates available
on its website.
``(7) Classified and other sensitive information.--
``(A) Classified information.--If any of the
information required to be included in the transition
plan of a Federal entity is classified information (as
defined in section 798(b) of title 18, United States
Code), the entity shall--
``(i) include in the plan--
``(I) an explanation of the
exclusion of any such information, which
shall be as specific as possible; and
``(II) all relevant non-classified
information that is available; and
``(ii) discuss as a factor under paragraph
(2)(H) the extent of the classified information
and the effect of such information on the
implementation of the relocation or sharing
arrangement.
``(B) Regulations.--Not <> later
than 180 days after the date of the enactment of the
Middle Class Tax Relief and Job Creation Act of 2012,
the NTIA, in consultation with the Director of OMB and
the Secretary of Defense, shall adopt regulations to
ensure that the information publicly released under
paragraph (5) or (6) does not contain classified
information or other sensitive information.

``(i) Dispute Resolution Process.--

[[Page 251]]

``(1) In general.--If a dispute arises between a Federal
entity and a non-Federal user regarding the execution, timing,
or cost of the transition plan submitted by the Federal entity
under subsection (h)(1), the Federal entity or the non-Federal
user may request that the NTIA establish a dispute resolution
board to resolve the dispute.
``(2) Establishment of board.--
``(A) In general.--If the NTIA receives a request
under paragraph (1), it shall establish a dispute
resolution board.
``(B) Membership and appointment.--The dispute
resolution board shall be composed of 3 members, as
follows:
``(i) A representative of the Office of
Management and Budget (in this subsection referred
to as `OMB'), to be appointed by the Director of
OMB.
``(ii) A representative of the NTIA, to be
appointed by the Assistant Secretary.
``(iii) A representative of the Commission, to
be appointed by the Chairman of the Commission.
``(C) Chair.--The representative of OMB shall be the
Chair of the dispute resolution board.
``(D) Vacancies.--Any vacancy in the dispute
resolution board shall be filled in the manner in which
the original appointment was made.
``(E) No compensation.--The members of the dispute
resolution board shall not receive any compensation for
service on the board. If any such member is an employee
of the agency of the official that appointed such member
to the board, compensation in the member's capacity as
such an employee shall not be considered compensation
under this subparagraph.
``(F) Termination of board.--The dispute resolution
board shall be terminated after it rules on the dispute
that it was established to resolve and the time for
appeal of its decision under paragraph (7) has expired,
unless an appeal has been taken under such paragraph. If
such an appeal has been taken, the board shall continue
to exist until the appeal process has been exhausted and
the board has completed any action required by a court
hearing the appeal.
``(3) Procedures.--The dispute resolution board shall meet
simultaneously with representatives of the Federal entity and
the non-Federal user to discuss the dispute. The dispute
resolution board may require the parties to make written
submissions to it.
``(4) Deadline for decision.--The dispute resolution board
shall rule on the dispute not later than 30 days after the
request was made to the NTIA under paragraph (1).
``(5) Assistance from technical panel.--The Technical Panel
established under subsection (h)(3) shall provide the dispute
resolution board with such technical assistance as the board
requests.
``(6) Administrative support.--The NTIA shall provide the
dispute resolution board with the administrative support
services necessary to carry out its duties under this
subsection.
``(7) Appeals.--A <> decision of the
dispute resolution board may be appealed to the United States
Court of Appeals for

[[Page 252]]

the District of Columbia Circuit by filing a notice of appeal
with that court not later than 30 days after the date of such
decision. Each party shall bear its own costs and expenses,
including attorneys' fees, for any appeal under this paragraph.
``(8) Regulations.--Not <> later than 180 days after the date of the enactment
of the Middle Class Tax Relief and Job Creation Act of 2012, the
NTIA shall, after public notice and comment and subject to
approval by OMB, adopt regulations to govern the working of any
dispute resolution boards established under paragraph (2)(A) and
the role of the Technical Panel in assisting any such board.
``(9) Certain requirements inapplicable.--The Federal
Advisory Committee Act (5 U.S.C. App.) and sections 552 and 552b
of title 5, United States Code, shall not apply to a dispute
resolution board established under paragraph (2)(A).

``(j) Relocation Prioritized Over Sharing.--
``(1) In general.--In <> evaluating a
band of frequencies for possible reallocation for exclusive non-
Federal use or shared use, the NTIA shall give priority to
options involving reallocation of the band for exclusive non-
Federal use and shall choose options involving shared use only
when it determines, in consultation with the Director of the
Office of Management and Budget, that relocation of a Federal
entity from the band is not feasible because of technical or
cost constraints.
``(2) Notification of congress when sharing chosen.--If the
NTIA determines under paragraph (1) that relocation of a Federal
entity from the band is not feasible, the NTIA shall notify the
Committee on Commerce, Science, and Transportation of the Senate
and the Committee on Energy and Commerce of the House of
Representatives of the determination, including the specific
technical or cost constraints on which the determination is
based.''.

(b) Conforming Amendment.--Section 309(j) of the Communications Act
of <> 1934 is further amended by striking
``relocation costs'' each place it appears and inserting ``relocation or
sharing costs''.
SEC. 6702. SPECTRUM RELOCATION FUND.

Section 118 of the National Telecommunications and Information
Administration Organization Act (47 U.S.C. 928) is amended--
(1) by striking ``relocation costs'' each place it appears
and inserting ``relocation or sharing costs'';
(2) by amending subsection (c) to read as follows:

``(c) Use of Funds.--The amounts in the Fund from auctions of
eligible frequencies are authorized to be used to pay relocation or
sharing costs of an eligible Federal entity incurring such costs with
respect to relocation from or sharing of those frequencies.'';
(3) in subsection (d)--
(A) in paragraph (2)--
(i) in subparagraph (A), by inserting ``or
sharing'' before the semicolon;
(ii) in subparagraph (B), by inserting ``or
sharing'' before the period at the end;
(iii) by redesignating subparagraphs (A) and
(B) as subparagraphs (B) and (C), respectively;
and
(iv) by inserting before subparagraph (B), as
so redesignated, the following:

[[Page 253]]

``(A) unless the eligible Federal entity has
submitted a transition plan to the NTIA as required by
paragraph (1) of section 113(h), the Technical Panel has
found such plan sufficient under paragraph (4) of such
section, and the NTIA has made available such plan on
its website as required by paragraph (5) of such
section;'';
(B) by striking paragraph (3); and
(C) by adding at the end the following:
``(3) Transfers for pre-auction costs.--
``(A) In general.--Subject to subparagraph (B), the
Director of OMB may transfer to an eligible Federal
entity, at any time (including prior to a scheduled
auction), such sums as may be available in the Fund to
pay relocation or sharing costs related to pre-auction
estimates or research, as such costs are described in
section 113(g)(3)(A)(iii).
``(B) Notification.--No funds may be transferred
pursuant to subparagraph (A) unless--
``(i) <> the
notification provided under paragraph (2)(C)
includes a certification from the Director of OMB
that--
``(I) funds transferred before an
auction will likely allow for timely
implementation of relocation or sharing,
thereby increasing net expected auction
proceeds by an amount not less than the
time value of the amount of funds
transferred; and
``(II) <> the
auction is intended to occur not later
than 5 years after transfer of funds;
and
``(ii) the transition plan submitted by the
eligible Federal entity under section 113(h)(1)
provides--
``(I) to the fullest extent
possible, for sharing and coordination
of eligible frequencies with non-Federal
users, including reasonable
accommodation by the eligible Federal
entity for the use of eligible
frequencies by non-Federal users during
the period that the entity is relocating
its spectrum uses (in this clause
referred to as the `transition period');
``(II) for non-Federal users to be
able to use eligible frequencies during
the transition period in geographic
areas where the eligible Federal entity
does not use such frequencies;
``(III) <> that the
eligible Federal entity will, during the
transition period, make itself available
for negotiation and discussion with non-
Federal users not later than 30 days
after a written request therefor; and
``(IV) that the eligible Federal
entity will, during the transition
period, make available to a non-Federal
user with appropriate security
clearances any classified information
(as defined in section 798(b) of title
18, United States Code) regarding the
relocation process, on a need-to-know
basis, to assist the non-Federal user in
the relocation process with such
eligible Federal entity or other
eligible Federal entities.
``(C) Applicability to certain costs.--

[[Page 254]]

``(i) In general.--
The <> Director of OMB may
transfer under subparagraph (A) not more than
$10,000,000 for costs incurred after June 28,
2010, but before the date of the enactment of the
Middle Class Tax Relief and Job Creation Act of
2012.
``(ii) Supplement not supplant.--Any amounts
transferred by the Director of OMB pursuant to
clause (i) shall be in addition to any amounts
that the Director of OMB may transfer for costs
incurred on or after the date of the enactment of
the Middle Class Tax Relief and Job Creation Act
of 2012.
``(4) Reversion of unused funds.--Any <> amounts in the Fund that are remaining
after the payment of the relocation or sharing costs that are
payable from the Fund shall revert to and be deposited in the
general fund of the Treasury, for the sole purpose of deficit
reduction, not later than 8 years after the date of the deposit
of such proceeds to the Fund, unless within 60 days in advance
of the reversion of such funds, the Director of OMB, in
consultation with the NTIA, notifies the congressional
committees described in paragraph (2)(C) that such funds are
needed to complete or to implement current or future relocation
or sharing arrangements.'';
(4) in subsection (e)--
(A) in paragraph (1)(B)--
(i) in clause (i), by striking ``subsection
(d)(2)(A)'' and inserting ``subsection
(d)(2)(B)''; and
(ii) in clause (ii), by striking ``subsection
(d)(2)(B)'' and inserting ``subsection
(d)(2)(C)''; and
(B) in paragraph (2)--
(i) by striking ``entity's relocation'' and
inserting ``relocation of the entity or
implementation of the sharing arrangement by the
entity'';
(ii) by inserting ``or the implementation of
such arrangement'' after ``such relocation''; and
(iii) by striking ``subsection (d)(2)(A)'' and
inserting ``subsection (d)(2)(B)''; and
(5) by adding at the end the following:

``(f) Additional Payments From Fund.--
``(1) Amounts available.--
Notwithstanding <> subsections (c) through (e), after the date of
the enactment of the Middle Class Tax Relief and Job Creation
Act of 2012, there are appropriated from the Fund and available
to the Director of OMB for use in accordance with paragraph (2)
not more than 10 percent of the amounts deposited in the Fund
from auctions occurring after such date of enactment of licenses
for the use of spectrum vacated by eligible Federal entities.
``(2) Use of amounts.--
``(A) In general.--The Director of OMB, in
consultation with the NTIA, may use amounts made
available under paragraph (1) to make payments to
eligible Federal entities that are implementing a
transition plan submitted under section 113(h)(1) in
order to encourage such entities to complete the
implementation more quickly, thereby encouraging timely
access to the eligible frequencies that are being
reallocated for exclusive non-Federal use or shared use.

[[Page 255]]

``(B) Conditions.--In the case of any payment by the
Director of OMB under subparagraph (A)--
``(i) such payment shall be based on the
market value of the eligible frequencies, the
timeliness with which the eligible Federal entity
clears its use of such frequencies, and the need
for such frequencies in order for the entity to
conduct its essential missions;
``(ii) the eligible Federal entity shall use
such payment for the purposes specified in clauses
(i) through (v) of section 113(g)(3)(A) to achieve
comparable capability of systems affected by the
reallocation of eligible frequencies from Federal
use to exclusive non-Federal use or to shared use;
``(iii) such payment may not be made if the
amount remaining in the Fund after such payment
will be less than 10 percent of the winning bids
in the auction of the spectrum with respect to
which the Federal entity is incurring relocation
or sharing costs; and
``(iv) <> such payment may not be
made until 30 days after the Director of OMB has
notified the congressional committees described in
subsection (d)(2)(C).

``(g) Restriction on Use of Funds.--No amounts in the Fund on the
day before the date of the enactment of the Middle Class Tax Relief and
Job Creation Act of 2012 may be used for any purpose except--
``(1) to pay the relocation or sharing costs incurred by
eligible Federal entities in order to relocate from the
frequencies the auction of which generated such amounts; or
``(2) to pay relocation or sharing costs related to pre-
auction estimates or research, in accordance with subsection
(d)(3).''.
SEC. 6703. NATIONAL SECURITY AND OTHER SENSITIVE INFORMATION.

Part B of title I of the National Telecommunications and Information
Administration Organization Act (47 U.S.C. 921 et seq.) is amended by
adding at the end the following:
``SEC. 119. <> NATIONAL SECURITY AND OTHER
SENSITIVE INFORMATION.

``(a) Determination.--If the <> head of an
Executive agency (as defined in section 105 of title 5, United States
Code) determines that public disclosure of any information contained in
a notification or report required by section 113 or 118 would reveal
classified national security information, or other information for which
there is a legal basis for nondisclosure and the public disclosure of
which would be detrimental to national security, homeland security, or
public safety or would jeopardize a law enforcement investigation, the
head of the Executive agency shall notify the Assistant Secretary of
that determination prior to the release of such information.

``(b) Inclusion in Annex.--The head of the Executive agency shall
place the information with respect to which a determination was made
under subsection (a) in a separate annex to the notification or report
required by section 113 or 118. The annex shall be provided to the
subcommittee of primary jurisdiction of the congressional committee of
primary jurisdiction in accordance with appropriate national security
stipulations but shall not be disclosed to the public or provided to any
unauthorized person through any means.''.

[[Page 256]]

TITLE VII--MISCELLANEOUS PROVISIONS

SEC. 7001. <> REPEAL OF CERTAIN SHIFTS IN
THE TIMING OF CORPORATE ESTIMATED TAX
PAYMENTS.

The following provisions of law (and any modification of any such
provision which is contained in any other provision of law) shall not
apply with respect to any installment of corporate estimated tax:
(1) Section 201(b) of the Corporate Estimated Tax Shift Act
of 2009.
(2) Section 561 of the Hiring Incentives to Restore
Employment Act.
(3) Section 505 of the United States-Korea Free Trade
Agreement Implementation Act.
(4) Section 603 of the United States-Colombia Trade
Promotion Agreement Implementation Act.
(5) Section 502 of the United States-Panama Trade Promotion
Agreement Implementation Act.
SEC. 7002. REPEAL OF REQUIREMENT RELATING TO TIME FOR REMITTING
CERTAIN MERCHANDISE PROCESSING FEES.

(a) Repeal.--The Trade Adjustment Assistance Extension Act of 2011
(title II of Public Law 112-40; 125 Stat. 402) is amended by
striking <> section 263.

(b) Clerical Amendment.--The table of contents for such Act is
amended by striking the item relating to section 263.
SEC. 7003. TREATMENT FOR PAYGO PURPOSES.

The budgetary effects of this Act shall not be entered on either
PAYGO scorecard maintained pursuant to section 4(d) of the Statutory
Pay-As-You-Go Act of 2010.

Approved February 22, 2012.

LEGISLATIVE HISTORY--H.R. 3630:
---------------------------------------------------------------------------

HOUSE REPORTS: No. 112-399 (Comm. of Conference).
CONGRESSIONAL RECORD:
Vol. 157 (2011):
Dec. 13, considered and passed
House.
Dec. 17, considered and passed
Senate, amended.
Vol. 158 (2012):
Feb. 17, House and Senate agreed to
conference report.