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                                                       Calendar No. 304
108th Congress                                                   Report
                                 SENATE
 1st Session                                                    108-161
_______________________________________________________________________

                                     

                                                       Calendar No. 304

    THE NATIONAL TELECOMMUNICATIONS AND INFORMATION ADMINISTRATION 
                          REAUTHORIZATION ACT

                               __________

                              R E P O R T

                                 OF THE

           COMMITTEE ON COMMERCE, SCIENCE, AND TRANSPORTATION

                                   on

                       S. H.R. deg.1478



                                     

       DATE deg.October 2, 2003.--Ordered to be printed
?

       SENATE COMMITTEE ON COMMERCE, SCIENCE, AND TRANSPORTATION

                      one hundred eighth congress

                             first session

                     JOHN McCAIN, Arizona, Chairman

TED STEVENS, Alaska                  ERNEST F. HOLLINGS, South Carolina
CONRAD BURNS, Montana                DANIEL K. INOUYE, Hawaii
TRENT LOTT, Mississippi              JOHN D. ROCKEFELLER IV, West 
KAY BAILEY HUTCHISON, Texas          Virginia
OLYMPIA J. SNOWE, Maine              JOHN F. KERRY, Massachusetts
SAM BROWNBACK, Kansas                JOHN B. BREAUX, Louisiana
GORDON SMITH, Oregon                 BYRON L. DORGAN, North Dakota
PETER G. FITZGERALD, Illinois        RON WYDEN, Oregon
JOHN ENSIGN, Nevada                  BARBARA BOXER, California
GEORGE ALLEN, Virginia               BILL NELSON, Florida
JOHN E. SUNUNU, New Hampshire        MARIA CANTWELL, Washington
                                     FRANK LAUTENBERG, New Jersey

           Jeanne Bumpus, Staff Director and General Counsel

                   Ann Begeman, Deputy Staff Director

                  Robert W. Chamberlin, Chief Counsel

      Kevin D. Kayes, Democratic Staff Director and Chief Counsel

                Gregg Elias, Democratic General Counsel

                                  (ii)


                                                       Calendar No. 304
108th Congress                                                   Report
                                 SENATE
 1st Session                                                    108-161

======================================================================



 
     AUTHORIZATION OF NATIONAL TELECOMMUNICATIONS AND INFORMATION 
                             ADMINISTRATION

                                _______
                                

                October 2, 2003.--Ordered to be printed

                                _______
                                

       Mr. McCain, from the Committee on Commerce, Science, and 
                Transportation, submitted the following

                              R E P O R T

                         [To accompany S. 1478]

    The Committee on Commerce, Science, and Transportation, to 
which was referred the bill (S. 1478) to reauthorize the 
National Telecommunications and Information Administration, and 
for other purposes, having considered the same, reports 
favorably thereon without amendment with 
amendments deg. with an amendment (in the nature of a 
substitute) deg. and recommends that the bill joint 
resolution deg. (as amended) deg. do pass.

                          Purpose of the Bill

  The purpose of S. 1478 is to authorize the National 
Telecommunications and Information Administration (NTIA) for 
fiscal years (FY) 2004 through 2008. The NTIA has been 
unauthorized since fiscal year 1993.

                          Background and Needs

  The NTIA, created in 1978 as a result of a major Executive 
Branch reorganization, is an agency of the U.S. Department of 
Commerce. The Administrator of NTIA, who is also the Assistant 
Secretary of Commerce, serves as the President's principal 
adviser on telecommunications policies pertaining to the 
nation's economic and technological advancement and to 
regulation of the telecommunications industry. The NTIA works 
to develop and present the Administration's position on both 
domestic and international telecommunications issues, and 
frequently provides guidance to other Executive Branch agencies 
on these issues. Among its responsibilities, the NTIA 
establishes policies concerning the Federal government's use of 
electromagnetic spectrum, including assignment, allocation, and 
use, and administers grants to encourage the growth and 
development of telecommunications and information technologies.

                          Legislative History

  On July 28, 2003, Senators McCain and Hollings introduced S. 
1478, a bill to reauthorize the NTIA and its programs, and for 
other purposes. On July 31, 2003, the Senate Committee on 
Commerce, Science, and Transportation held an executive session 
at which S. 1478 was considered. The bill was ordered to be 
reported by voice vote.

                            Estimated Costs

  In accordance with paragraph 11(a) of rule XXVI of the 
Standing Rules of the Senate and section 403 of the 
Congressional Budget Act of 1974, the Committee provides the 
following cost estimate, prepared by the Congressional Budget 
Office:

                                     U.S. Congress,
                               Congressional Budget Office,
                                   Washington, DC, August 15, 2003.
Hon. John McCain,
Chairman, Committee on Commerce, Science, and Transportation, U.S. 
        Senate, Washington, DC.
    Dear Mr. Chairman: The Congressional Budget Office has 
prepared the enclosed cost estimate for S. 1478, a bill to 
reauthorize the National Telecommunications and Information 
Administration, and for other purposes.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contact is Melissa 
Zimmerman.
            Sincerely,
                                       Douglas Holtz-Eakin,
                                                          Director.
    Enclosure.

S. 1478--A bill to reauthorize the National Telecommunications and 
        Information Administration, and for other purposes

    Summary: S. 1478 would authorize the appropriation of $184 
million for the National Telecommunications and Information 
Administration (NTIA) for the 2004-2008 period. This amount 
includes about $100 million for NTIA salaries and expenses and 
$84 million for grants under the NTIA Technology Opportunities 
Program but does not include an authorization for grants for 
public telecommunication projects (which received $44 million 
for 2003).
    Assuming appropriation of the specified amounts, CBO 
estimates that implementing S. 1478 would cost $16 million in 
2004 and $144 million over the 2004-2008 period. Enacting this 
bill would not affect direct spending or revenues.
    S. 1478 contains no intergovernmental or private-section 
mandates as defined in the Unfunded Mandates Reform Act (UMRA) 
and would provide benefits to state, local, and tribal 
governments.
    Estimated cost to the Federal Government: The estimated 
budgetary impact of S. 1478 is shown in the following table. 
For this estimate, CBO assumes that the amounts authorized will 
be appropriated each year and that outlays will follow 
historical trends for these programs. The costs of this 
legislation fall within budget functions 370 (commerce and 
housing credit) and 500 (education, training, employment, and 
social services).

----------------------------------------------------------------------------------------------------------------
                                                                     By fiscal year, in millions of dollars--
                                                                 -----------------------------------------------
                                                                   2003    2004    2005    2006    2007    2008
----------------------------------------------------------------------------------------------------------------
                                        SPENDING SUBJECT TO APPROPRIATION

NTIA Spending Under Current Law:
    Budget Authority 1..........................................      75       0       0       0       0       0
    Estimated Outlays...........................................     101      73      32      12       0       0
Proposed Changes:
    Authorization Level.........................................       0      35      35      37      38      39
    Estimated Outlays...........................................       0      16      22      32      37      37
Spending Under S. 1478
    Authorization Level 1.......................................      75      35      35      37      38      39
    Estimated Outlays...........................................     101      89      54      44      37      37
----------------------------------------------------------------------------------------------------------------
1 The 2003 level is the amount appropriated for that year.

    Intergovernmental and private-sector impact: S. 1478 
contains no intergovernmental or private-sector mandates as 
defined in UMRA and would provide benefits to state, local, and 
tribal governments. The bill would benefit state, local, and 
tribal governments by authorizing a total of $84 million in 
matching grants for the Technology Opportunities Program over 
the period 2004-2008.
    Estimate prepared by: Federal Costs: Melissa E. Zimmerman; 
Impact on State, Local, and Tribal Governments: Sarah Puro; and 
Impact on the Private Sector: Jean Talarico.
    Estimate approved by: Peter H. Fontaine, Deputy Assistant 
Director for Budget Analysis.

                      Regulatory Impact Statement

  In accordance with paragraph 11(b) of rule XXVI of the 
Standing Rules of the Senate, the Committee provides the 
following evaluation of the regulatory impact of the 
legislation, as reported:

                       NUMBER OF PERSONS COVERED

  S. 1478 would reauthorize the NTIA for FY 2004 through FY 
2008 and authorize funding for the NTIA to provide grants as 
part of the Technology Opportunities Program (TOP). The TOP has 
never been authorized, but has been operated through 
appropriations bills since 1994. The number of persons covered 
by this legislation should be consistent with current levels of 
individuals affected.

                            ECONOMIC IMPACT

  S. 1478 would authorize funds for the NTIA's programs. These 
programs are intended to spur innovation, encourage 
competition, help create jobs, and provide consumers with more 
choices and better quality telecommunications products and 
services. This legislation is expected to have a positive 
effect on the nation's economy.

                                PRIVACY

  S. 1478 is not expected to have an adverse effect on the 
personal privacy of any individuals that will be impacted by 
this legislation.

                               PAPERWORK

  There should be no change in paperwork requirements resulting 
from passage of S. 1478.

                      Section-by-Section Analysis


Section 1. Reauthorization of NTIA

  This section would authorize funding for the NTIA for Fiscal 
Years 2004 through 2008. The President's FY 2004 budget 
requests $18,869,000 for the NTIA. For FY 2005 through 2008, 
the bill would authorize funding for the NTIA at 3 percent 
increases annually.
  This section also would authorize funding for the NTIA to 
provide grants as part of the TOP. The TOP has never been 
authorized. Instead, it has operated through appropriations 
bills since 1994. Through the program, the NTIA provides 
matching grants to State and local governments and non-profit 
organizations to demonstrate advanced and innovative 
applications of telecommunications and information technology. 
As described on the NTIA's web site, the TOP is ``a merit-based 
grant program that brings the benefits of digital network 
technologies to communities throughout the United States.'' In 
2002, the NTIA awarded $12.4 million to 25 grantees, selected 
from 700 applicants. Awards were granted based on the ability 
of the applicant to serve as a model for similar organizations 
across the United States. The Administration has requested no 
funding for the TOP for FY 2004.

Section 2. Payment for spectrum management functions

  This section would permit the NTIA to charge fees to other 
Federal agencies to cover its costs of managing Federal 
spectrum and making spectrum assignments. Historically, this 
authority has been granted to the NTIA in appropriations bills.

                        Changes in Existing Law

  In compliance with paragraph 12 of rule XXVI of the Standing 
Rules of the Senate, changes in existing law made by the bill, 
as reported, are shown as follows (existing law proposed to be 
omitted is enclosed in black brackets, new material is printed 
in italic, existing law in which no change is proposed is shown 
in roman):

NATIONAL TELECOMMUNICATIONS AND INFORMATION ADMINISTRATION ORGANIZATION 
                                  ACT


                        [47 U.S.C. 901 et seq.]

SEC. 104. SPECTRUM MANAGEMENT ACTIVITIES.

                            [47 U.S.C. 903]

  (a) Revision of Regulations.--Within 180 days after the date 
of the enactment of this Act, the Secretary of Commerce and the 
NTIA shall amend the Department of Commerce spectrum management 
document entitled ``Manual of Regulations and Procedures for 
Federal Radio Frequency Management'' to improve Federal 
spectrum management activities and shall publish in the Federal 
Register any changes in the regulations in such document.
  (b) Requirements for Revisions.--The amendments required by 
subsection (a) shall--
          (1) provide for a period at the beginning of each 
        meeting of the Interdepartmental Radio Advisory 
        Committee to be open to the public to make 
        presentations and receive advice, and provide the 
        public with other meaningful opportunities to make 
        presentations and receive advice;
          (2) include provisions that will require--
                  (A) publication in the Federal Register of 
                major policy proposals that are not classified 
                and that involve spectrum management, and
                  (B) adequate opportunity for public review 
                and comment on those proposals;
          (3) include provisions that will require publication 
        in the Federal Register of major policy decisions that 
        are not classified and that involve spectrum 
        management;
          (4) include provisions that will require that 
        nonclassified spectrum management information be made 
        available to the public, including access to electronic 
        databases; and
          (5) establish procedures that provide for the prompt 
        and impartial consideration of requests for access to 
        Government spectrum by the public, which procedures 
        shall include provisions that will require the 
        disclosure of the status and ultimate disposition of 
        any such request.
  (c) Certification to Congress.--Not later than 180 days after 
the date of enactment of this Act, the Secretary of Commerce 
shall certify to Congress that the Secretary has complied with 
this section.
  (d) Radio Services.--
          (1) Assignments for radio services.--In assigning 
        frequencies for mobile radio services and other radio 
        services, the Secretary of Commerce shall promote 
        efficient and cost-effective use of the spectrum to the 
        maximum extent feasible.
          (2) Authority to withhold assignments.--The Secretary 
        of Commerce shall have the authority to withhold or 
        refuse to assign frequencies for mobile radio service 
        or other radio service in order to further the goal of 
        making efficient and cost-effective use of the 
        spectrum.
          (3) Spectrum plan.--By October 1, 1993, the Secretary 
        of Commerce shall adopt and commence implementation of 
        a plan for Federal agencies with existing mobile radio 
        systems to use more spectrum-efficient technologies 
        that are at least as spectrum-efficient and cost-
        effective as readily available commercial mobile radio 
        systems. The plan shall include a time schedule for 
        implementation.
          (4) Report to congress.--By October 1, 1993, the 
        Secretary of Commerce shall submit to the Committee on 
        Commerce, Science, and Transportation of the Senate and 
        the Committee on Energy and Commerce of the House of 
        Representatives a report summarizing the plan adopted 
        under paragraph (3), including the implementation 
        schedule for the plan.
  (e) Proof of Compliance With FCC Licensing Requirements.--
          (1) Amendment to manual required.--Within 90 days 
        after the date of enactment of this subsection, the 
        Secretary and the NTIA shall amend the spectrum 
        management document described in subsection (a) to 
        require that--
                  (A) no person or entity (other than an agency 
                or instrumentality of the United States) shall 
                be permitted, after 1 year after such date of 
                enactment, to operate a radio station utilizing 
                a frequency that is authorized for the use of 
                government stations pursuant to section 
                103(b)(2)(A) of this Act for any non-government 
                application unless such person or entity has 
                submitted to the NTIA proof, in a form 
                prescribed by such manual, that such person or 
                entity has obtained a license from the 
                Commission; and
                  (B) no person or entity (other than an agency 
                or instrumentality of the United States) shall 
                be permitted, after 1 year after such date of 
                enactment, to utilize a radio station belonging 
                to the United States for any non-government 
                application unless such person or entity has 
                submitted to the NTIA proof, in a form 
                prescribed by such manual, that such person or 
                entity has obtained a license from the 
                Commission.
          (2) Retention of forms.--The NTIA shall maintain on 
        file the proofs submitted under paragraph (1), or 
        facsimiles thereof.
          (3) Certification.--Within 1 year after the date of 
        enactment of this subsection, the Secretary and the 
        NTIA shall certify to the Committee on Energy and 
        Commerce of the House of Representatives and the 
        Committee on Commerce, Science, and Transportation of 
        the Senate that--
                  (A) the amendments required by paragraph (1) 
                have been accomplished; and
                  (B) the requirements of subparagraphs (A) and 
                (B) of such paragraph are being enforced.
  (f) Reimbursement From Federal Agencies.--
          (1) Fees for costs.--Notwithstanding section 1535(d) 
        of title 31, United States Code, the NTIA shall assess 
        against, and collect from, each Federal agency for 
        which the NTIA assigns spectrum or provides any 
        spectrum management functions a charge to cover the 
        costs thereof.
          (2) Assignment and management function charges.--The 
        NTIA may not assign any spectrum for use for, or 
        provide any spectrum management functions with respect 
        to, any Federal agency, except to the extent that the 
        NTIA obtains reimbursement for the costs thereof.

           *       *       *       *       *       *       *


[SEC. 151. AUTHORIZATION OF APPROPRIATIONS FOR ADMINISTRATION.

  [There are authorized to be appropriated for the 
administration of the NTIA $17,600,000 for fiscal year 1992 and 
$17,900,000 for fiscal year 1993, and such sums as may be 
necessary for increases resulting from adjustments in salary, 
pay, retirement, other employee benefits required by law, and 
other nondiscretionary costs.]

SEC. 151. AUTHORIZATION OF APPROPRIATIONS FOR ADMINISTRATION.

  (a) In General.--There are authorized to be appropriated for 
the administration of the NTIA--
          (1) $18,869,000 for fiscal year 2004;
          (2) $19,435,000 for fiscal year 2005;
          (3) $20,018,000 for fiscal year 2006;
          (4) $20,619,000 for fiscal year 2007; and
          (5) $21,237,000 for fiscal year 2008.
  (b) TOP Program.--There are authorized to be appropriated to 
the NTIA for grants under the NTIA Technology Opportunities 
Program (described in the NTIA notice of availability of funds 
published on March 17, 2003, in the Federal Register (68 Fed. 
Reg. 12678)), including administrative costs--
          (1) $15,862,000 for fiscal year 2004;
          (2) $16,338,000 for fiscal year 2005;
          (3) $16,828,000 for fiscal year 2006;
          (4) $17,333,000 for fiscal year 2007; and
          (5) $17,852,000 for fiscal year 2008.