[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[S. 3246 Introduced in Senate (IS)]
<DOC>
116th CONGRESS
2d Session
S. 3246
To amend the Communications Act of 1934 to direct the Federal
Communications Commission to conduct a public auction of the C-band,
and for other purposes.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
January 28, 2020
Mr. Kennedy (for himself, Mr. Schatz, and Ms. Cantwell) introduced the
following bill; which was read twice and referred to the Committee on
Commerce, Science, and Transportation
_______________________________________________________________________
A BILL
To amend the Communications Act of 1934 to direct the Federal
Communications Commission to conduct a public auction of the C-band,
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.
This Act may be cited as the ``Spectrum Management And Reallocation
for Taxpayers Act'' or the ``SMART Act''.
SEC. 2. DEFINITIONS.
In this Act:
(1) C-band reimbursement and implementation fund; c-band
fund.--The term ``C-Band Reimbursement and Implementation
Fund'' or ``C-Band Fund'' means the fund established under
section 5(a).
(2) Commission.--The term ``Commission'' means the Federal
Communications Commission.
(3) Digital divide trust fund.--The term ``Digital Divide
Trust Fund'' means the trust fund established under section
4(a)(1)(A).
(4) Native americans.--The term ``Native Americans'' has
the meaning given the term in section 736(g) of the Public
Health Service Act (42 U.S.C. 293(g)).
(5) Next generation 9-1-1 trust fund.--The term ``Next
Generation 9-1-1 Trust Fund'' means the trust fund established
under section 4(a)(1)(B).
(6) Trust land.--The term ``trust land'' has the meaning
given the term in section 3765 of title 38, United States Code.
SEC. 3. PUBLIC AUCTION OF C-BAND SPECTRUM.
(a) In General.--Not later than 1 year after issuing rules for
reallocating a portion of the electromagnetic spectrum described in
subsection (b) through a public auction, if the Commission issues such
rules during the year 2020, the Commission shall--
(1) identify 300 megahertz of that spectrum for
reallocation consistent with this section;
(2) clear the spectrum identified under paragraph (1)
consistent with subsection (d);
(3) reallocate the spectrum identified under paragraph (1)
for terrestrial broadband use, reserving 20 megahertz of the
spectrum as a guard band; and
(4) notwithstanding paragraph (15)(A) of section 309(j) of
the Communications Act of 1934 (47 U.S.C. 309(j)), commence a
system of competitive bidding under that section to grant new
initial licenses for the use of the spectrum identified under
paragraph (1) of this subsection, subject to--
(A) flexible-use service rules; and
(B) the requirement to protect incumbent uses of
the spectrum not otherwise cleared under paragraph (2)
of this subsection from harmful interference.
(b) Electromagnetic Spectrum Described.--The electromagnetic
spectrum described in this subsection is the spectrum between 3700
megahertz and 4200 megahertz, inclusive.
(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 ``and (G)'' and
inserting ``(G), and (H)'';
(2) in subparagraph (C)(i), by striking ``and (G)'' and
inserting ``(G), and (H)''; and
(3) by adding at the end the following:
``(H) Certain proceeds designated for c-band
reallocation, broadband infrastructure deployment, and
next generation 9-1-1 services.--Notwithstanding
subparagraph (A) and except as provided in subparagraph
(B), of 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 3 of the Spectrum Management And
Reallocation for Taxpayers Act--
``(i) the Commission shall use such amounts
as are necessary to reimburse the general fund
of the Treasury for any amounts borrowed under
section 5(b) of that Act;
``(ii) after compliance with clause (i) of
this subparagraph, the Commission shall deposit
the next $5,000,000,000 in the general fund of
the Treasury for the sole purpose of deficit
reduction; and
``(iii) after compliance with clauses (i)
and (ii) of this subparagraph, the Commission
shall deposit all amounts remaining in
accordance with section 4(b) of that Act.''.
(d) Clearing of C-Band Spectrum for Auction.--
(1) Licenses.--
(A) Issuance.--The Commission shall issue any new
licenses or license modifications required to clear
electromagnetic spectrum under subsection (a)(2) as
expeditiously as possible after the date of enactment
of this Act.
(B) Protests.--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 subparagraph (A) of this
paragraph.
(2) Protection of c-band users.--The Commission shall clear
electromagnetic spectrum under subsection (a)(2) in a manner
that ensures that persons or entities that used the spectrum
before the clearing of the spectrum receive--
(A) service that is equivalent to or better than
the service received before the clearing of the
spectrum; and
(B) service at a level described in subparagraph
(A) continuously throughout the clearing of the
spectrum.
(e) Additional Protections.--In promulgating rules regarding the
use of spectrum in the covered band, the Commission shall ensure that
aviation safety and other safety-of-life uses operating in the covered
band or in adjacent spectrum bands are protected from harmful
interference.
SEC. 4. TRUST FUNDS.
(a) Establishment.--
(1) In general.--There is established in the Treasury of
the United States--
(A) a trust fund to be known as the ``Digital
Divide Trust Fund''; and
(B) a trust fund to be known as the ``Next
Generation 9-1-1 Trust Fund''.
(2) Availability.--Amounts deposited in the trust funds
established under paragraph (1) shall remain available until
expended.
(b) Deposit of Funds.--With respect to the amounts described in
subparagraph (H)(i)(II) of section 309(j)(8) of the Communications Act
of 1934 (47 U.S.C. 309(j)(8)), as added by section 3 of this Act, the
Commission shall deposit--
(1) one-third of those amounts, but not to exceed
$12,500,000,000, in the Next Generation 9-1-1 Trust Fund; and
(2) any remaining amounts in the Digital Divide Trust Fund.
(c) Use of Digital Divide Trust Fund.--
(1) In general.--The Commission shall use the amounts
deposited in the Digital Divide Trust Fund for the deployment
of--
(A) wireless broadband infrastructure in areas that
the Commission has determined are underserved or
unserved with respect to wireless broadband internet
access service, including areas located on trust land
or used to deliver services to Native Americans;
(B) wired broadband infrastructure in areas that
the Commission has determined are underserved or
unserved with respect to wired broadband internet
access service, including areas located on trust land
or used to deliver services to Native Americans; and
(C) broadband infrastructure to support other
technologies, including telehealth, telemedicine, e-
government, and educational opportunities at home.
(2) Limitations.--
(A) Rulemaking required.--
(i) Timing.--Not earlier than January 1,
2023, the Commission shall conduct a rulemaking
to determine how to implement paragraph (1).
(ii) Obligation of amounts.--The Commission
may not obligate any amounts from the Digital
Divide Trust Fund under paragraph (1) until the
Commission has completed the rulemaking under
clause (i) of this subparagraph.
(B) Relation to universal service programs.--The
amounts provided under paragraph (1) are not intended
to supplant, or be commingled with, the funds collected
by the Commission and distributed through any program
established under section 254 of the Communications Act
of 1934 (47 U.S.C. 254).
(d) Use of Next Generation 9-1-1 Trust Fund.--The National 911
Program overseen by the National Telecommunications and Information
Administration and the National Highway Traffic Safety Administration
shall use the amounts deposited in the Next Generation 9-1-1 Trust Fund
for the deployment of Next Generation 9-1-1 services.
SEC. 5. C-BAND REIMBURSEMENT AND IMPLEMENTATION FUND.
(a) Establishment.--There is established in the Treasury of the
United States a fund to be known as the ``C-Band Reimbursement and
Implementation Fund'' (referred to in this section as the ``C-Band
Fund'').
(b) Borrowing Authority.--The Commission may borrow from the
Treasury of the United States an amount not to exceed $6,000,000,000 to
use for payments required under subsections (d) and (e).
(c) Deposit of Funds.--Any amounts borrowed under subsection (b)
shall be deposited in the C-Band Fund.
(d) Payment of Costs.--The Commission shall use the amounts in the
C-Band Fund to reimburse costs reasonably incurred by--
(1) incumbent holders of licenses or market access rights
for use of the electromagnetic spectrum identified under
paragraph (1) of section 3(a), to reduce the usage of that
spectrum by those entities in accordance with that section;
(2) licensees or registrants of an earth station receiving
signals over the spectrum identified under section 3(a)(1); and
(3) the relocation of other incumbent uses of the spectrum
identified under section 3(a)(1).
(e) Implementation.--The Commission shall use not more than
$1,000,000,000 of the amounts in the C-Band Fund for payments to
incentivize incumbent holders of licenses or market access rights for
use of the electromagnetic spectrum identified under paragraph (1) of
section 3(a) to reduce their usage of that spectrum in accordance with
that section in a more timely fashion.
(f) Transfer of Unused Funds.--If any amounts remain in the C-Band
Fund after the date that is 3 years after the completion of the system
of competitive bidding conducted under section 3, the Secretary of the
Treasury shall transfer those amounts to the Digital Divide Trust Fund.
SEC. 6. SPECTRUM AUCTION PARTICIPATION.
(a) In General.--Section 309(j) of the Communications Act of 1934
(47 U.S.C. 309(j)) is amended--
(1) in paragraph (17)(A), in the matter preceding clause
(i), by striking ``Notwithstanding'' and inserting ``Subject to
paragraph (19) and notwithstanding''; and
(2) by adding at the end the following:
``(19) Prohibition on auction participation by entities
posing a national security risk.--
``(A) In general.--An entity posing a national
security risk may not participate in any system of
competitive bidding under this subsection.
``(B) Definition.--
``(i) In general.--For purposes of this
paragraph, the term `entity posing a national
security risk' means an entity that the
Commission determines poses a national security
risk.
``(ii) Determination.--In determining which
entities qualify as entities posing a national
security risk under this paragraph, the
Commission shall rely solely upon a
determination by--
``(I) an appropriate national
security agency;
``(II) an interagency body that
includes appropriate national security
expertise, including the Federal
Acquisition Security Council
established under section 1322 of title
41, United States Code;
``(III) Congress; or
``(IV) the Secretary of Commerce
under the program established under
Executive Order 13873 (84 Fed. Reg.
22689; relating to securing information
and communications technology and
services supply chain) or by an agency
under any successor program.''.
(b) Implementation.--Not later than 1 year after the date of
enactment of this Act, the Commission shall take all steps necessary to
implement the amendments made by subsection (a).
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