To eliminate the deadlines for spectrum auctions of spectrum previously allocated to television broadcasting.

APRIL 24, 2002

Mr. TAUZIN (for himself, Mr. UPTON, Mr. MARKEY, Mr. BARTON of Texas, Mr. WAXMAN, Mr. GILLMOR, Mr. HALL of Texas, Mr. GREENWOOD, Mr. BOUCHER, Mr. DEAL of Georgia, Mr. TOWNS, Mr. BURR of North Carolina, Mr. PALLONE, Mr. WHITFIELD, Mr. BROWN of Ohio, Mr. NORWOOD, Mr. GORDON, Mrs. CUBIN, Mr. RUSH, Mr. SHIMKUS, Ms. ESHOO, Mr. PICKERING, Mr. STUPAK, Mr. FOSSELLA, Mr. ENGEL, Mr. BLUNT, Mr. SAWYER, Mr. TOM DAVIS of Virginia, Mr. WYNN, Mr. BRYANT, Mr. GREEN of Texas, Mr. EHRLICH, Ms. MCCARTHY of Missouri, Mr. BUYER, Mr. STRICKLAND, Mr. RADANOVICH, Ms. DEGETTE, Mr. BASS, Mr. BARRETT of Wisconsin, Mr. PITTS, Mr. LUTHER, Mrs. BONO, Mrs. CAPPS, Mr. WALDEN, Mr. DOYLE, Mr. TERRY, Mr. JOHN, Mr. FLETCHER, Ms. HARMAN, Mr. SHADEGG, and Mrs. WILSON of New Mexico) introduced the following bill; which was referred to the Committee on Energy and Commerce

To eliminate the deadlines for spectrum auctions of spectrum previously allocated to television broadcasting.

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

SECTION 1. SHORT TITLE.

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

SEC. 2. FINDINGS.

The Congress finds the following:

(1) Circumstances in the telecommunications market have changed dramatically since the auctioning of spectrum in the 700 megahertz band was originally mandated by Congress in 1997, raising serious questions as to whether the original deadlines, or the subsequent revision of the deadlines, are consistent with sound telecommunications policy and spectrum management principles.

(2) No comprehensive plan yet exists for allocating additional spectrum for third-generation wireless and other advanced communications services. The Federal Communications Commission should have the flexibility to auction frequencies in the 700 megahertz band for such purposes.

(3) The study being conducted by the National Telecommunications and Information Administration in consultation with the Department of Defense to determine whether the Department of Defense can share or relinquish additional spectrum for third-generation wireless and other advanced communications services will not be completed until after the June 19th auction date for the upper 700 megahertz band, and long after the applications must be filed to participate in the auction, thereby creating further uncertainty as to whether the frequencies in the 700 megahertz band will be put to their highest and best use for the benefit of consumers.

(4) The Federal Communications Commission is also in the process of determining how to resolve the interference problems that exist in the 800 megahertz band, especially for public safety. One option being considered for the 800 megahertz band would involve the 700 megahertz band. The Commission should not hold the 700 megahertz auction before the 800 megahertz interference issues are resolved or a tenable plan has been conceived.

(5) The 700 megahertz band is currently occupied by television broadcasters, and will be so until the transfer to digital television is completed. This situation creates a tremendous amount of uncertainty concerning when the spectrum will be available and reduces the value placed on the spectrum by potential bidders. The encumbrance of the 700 megahertz band reduces both the amount of money that the auction would be likely to produce and the probability that the spectrum would be purchased by the entities that valued the spectrum the most and would put the spectrum to its most productive use.

(6) The Commission's rules governing voluntary mechanisms for vacating the 700 megahertz band by broadcast stations--

(A) produced no certainty that the band would be available for advanced mobile communications services, public safety operations, or other wireless services any earlier than the existing statutory framework provides; and

(B) should advance the transition of digital television and must not result in the unjust enrichment of any incumbent licensee.

SEC. 3. REPEAL OF DEADLINES FOR SPECTRUM AUCTIONS.

(a) COMMUNICATIONS ACT OF 1934- Section 309(j)(14)(C)(ii) of the Communications Act of 1934 (47 U.S.C. 309(j)(14)(C)(ii)) is amended by striking the second sentence.

(b) BALANCED BUDGET ACT OF 1997- Section 3007 of the Balanced Budget Act of 1997 (111 Stat. 269) is amended by adding at the end the following new sentence: `This section shall not apply to the band of frequencies between 698 and 806 megahertz, inclusive.'.

(c) CONSOLIDATED APPROPRIATIONS ACT- Paragraphs (2) and (3) of section 213(a) of H.R. 3425 of the 106th Congress, as enacted into law by section 1000(a)(5) of an Act making consolidated appropriations for the fiscal year ending September 30, 2000, and for other purposes (Public Law 106-113; 113 Stat. 1501A-295), are repealed.

SEC. 4. TERMINATION OF SCHEDULED AUCTIONS.

(a) TERMINATION- The Federal Communications Commission shall not commence or conduct auctions 31 and 44 on June 19, 2002, as specified in the public notices of March 19, 2002, and March 20, 2002 (DA 02-659 and DA 02-563).

(b) REPORT- Within one year after the date of enactment of this Act, the Commission shall submit a report to the Congress--

(1) specifying when the Commission intends to reschedule auctions 31 and 44; and

(2) describing the progress made by the Commission in the digital television transition and in the assignment and allocation of additional spectrum for advanced mobile communications services that warrants the scheduling of such auctions.

END