Investing in America's Digital Infrastructure Act

II 116TH CONGRESS 1ST SESSION S. 2956 To amend the Communications Act of 1934 to direct the Federal Communica- tions Commission to conduct a public auction of the C-band, and for other purposes. IN THE SENATE OF THE UNITED STATES NOVEMBER 21, 2019 Mr. SCHATZ (for himself, Mr. MARKEY, 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 Representa- 1 tives of the United States of America in Congress assembled, 2 SECTION 1. SHORT TITLE. 3 This Act may be cited as the ‘‘Investing in America’s 4 Digital Infrastructure Act’’. 5 SEC. 2. DEFINITIONS. 6 In this Act: 7 VerDate Sep 11 2014 23:00 Dec 03, 2019 Jkt 099200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\S2956.IS S2956 lotter on DSKBCFDHB2PROD with BILLS 2 •S 2956 IS (1) C-BAND REIMBURSEMENT FUND.—The 1 term ‘‘C-Band Reimbursement Fund’’ means the 2 fund established under section 5(a). 3 (2) COMMISSION.—The term ‘‘Commission’’ 4 means the Federal Communications Commission. 5 (3) DIGITAL DIVIDE TRUST FUND.—The term 6 ‘‘Digital Divide Trust Fund’’ means the trust fund 7 established under section 4(a). 8 SEC. 3. PUBLIC AUCTION OF C-BAND SPECTRUM. 9 (a) IN GENERAL.—Not earlier than June 1, 2021, 10 and not later than December 31, 2021, the Commission 11 shall— 12 (1) identify not less than 200 megahertz of the 13 electromagnetic spectrum described in subsection (b) 14 for reallocation consistent with this section; 15 (2) clear the spectrum identified under para- 16 graph (1) consistent with subsection (f); 17 (3) reallocate the spectrum identified under 18 paragraph (1) for terrestrial broadband use, reserv- 19 ing 20 megahertz of the spectrum as a guard band; 20 and 21 (4) notwithstanding paragraph (15)(A) of sec- 22 tion 309(j) of the Communications Act of 1934 (47 23 U.S.C. 309(j)), begin a system of competitive bid- 24 ding under that section to grant new initial licenses 25 VerDate Sep 11 2014 23:00 Dec 03, 2019 Jkt 099200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\S2956.IS S2956 lotter on DSKBCFDHB2PROD with BILLS 3 •S 2956 IS for the use of the spectrum identified under para- 1 graph (1) of this subsection, subject to— 2 (A) flexible-use service rules; and 3 (B) the requirement to protect incumbent 4 uses of the spectrum not otherwise cleared 5 under paragraph (2) of this subsection from 6 harmful interference. 7 (b) ELECTROMAGNETIC SPECTRUM DESCRIBED.— 8 The electromagnetic spectrum described in this subsection 9 is the spectrum between 3700 megahertz and 4200 mega- 10 hertz, inclusive. 11 (c) AUCTION PROCEEDS.—Section 309(j)(8) of the 12 Communications Act of 1934 (47 U.S.C. 309(j)(8)) is 13 amended— 14 (1) in subparagraph (A), by striking ‘‘and (G)’’ 15 and inserting ‘‘(G), and (H)’’; 16 (2) in subparagraph (C)(i), by striking ‘‘and 17 (G)’’ and inserting ‘‘(G), and (H)’’; and 18 (3) by adding at the end the following: 19 ‘‘(H) CERTAIN PROCEEDS DESIGNATED 20 FOR DIGITAL DIVIDE TRUST FUND.—Notwith- 21 standing subparagraph (A) and except as pro- 22 vided in subparagraph (B), the proceeds (in- 23 cluding deposits and upfront payments from 24 successful bidders) from the use of a system of 25 VerDate Sep 11 2014 23:00 Dec 03, 2019 Jkt 099200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\S2956.IS S2956 lotter on DSKBCFDHB2PROD with BILLS 4 •S 2956 IS competitive bidding under this subsection pur- 1 suant to section 3 of the Investing in America’s 2 Digital Infrastructure Act shall be deposited in 3 the Digital Divide Trust Fund established 4 under section 4 of the Investing in America’s 5 Digital Infrastructure Act.’’. 6 (d) CLEARING OF C-BAND SPECTRUM FOR AUC- 7 TION.— 8 (1) LICENSES.— 9 (A) ISSUANCE.—The Commission shall 10 issue any new licenses or license modifications 11 required to clear electromagnetic spectrum 12 under subsection (a)(2) as expeditiously as pos- 13 sible after the date of enactment of this Act. 14 (B) PROTESTS.—The right of a licensee to 15 protest a proposed order of modification of its 16 license under section 316 of the Communica- 17 tions Act of 1934 (47 U.S.C. 316) shall not 18 apply in the case of a modification made under 19 subparagraph (A) of this paragraph. 20 (2) PROTECTION OF C-BAND USERS.—The 21 Commission shall clear electromagnetic spectrum 22 under subsection (a)(2) in a manner that ensures 23 that persons or entities that used the spectrum be- 24 fore the clearing of the spectrum receive— 25 VerDate Sep 11 2014 23:00 Dec 03, 2019 Jkt 099200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\S2956.IS S2956 lotter on DSKBCFDHB2PROD with BILLS 5 •S 2956 IS (A) service that is equivalent to or better 1 than the service received before the clearing of 2 the spectrum; and 3 (B) service at a level described in subpara- 4 graph (A) continuously throughout the clearing 5 of the spectrum. 6 SEC. 4. DIGITAL DIVIDE TRUST FUND. 7 (a) ESTABLISHMENT.— 8 (1) IN GENERAL.—There is established in the 9 Treasury of the United States a trust fund to be 10 known as the ‘‘Digital Divide Trust Fund’’. 11 (2) AVAILABILITY.—Amounts deposited in the 12 Digital Divide Trust Fund shall remain available 13 until expended. 14 (b) INVESTMENT.—Amounts in the Digital Divide 15 Trust Fund shall be invested in accordance with section 16 9702 of title 31, United States Code, and any interest on, 17 and proceeds from, any such investment shall be credited 18 to, and become part of, the Fund. 19 (c) USE OF FUNDS.— 20 (1) REIMBURSEMENT OF BORROWED 21 AMOUNTS.—As amounts are deposited in the Digital 22 Divide Trust Fund, the Commission shall first use 23 those amounts to reimburse the general fund of the 24 VerDate Sep 11 2014 23:00 Dec 03, 2019 Jkt 099200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6201 E:\BILLS\S2956.IS S2956 lotter on DSKBCFDHB2PROD with BILLS 6 •S 2956 IS Treasury for any amounts borrowed under section 1 5(b). 2 (2) OTHER USES.— 3 (A) IN GENERAL.—The Commission shall 4 use the amounts remaining in the Digital Di- 5 vide Trust Fund after compliance with para- 6 graph (1)— 7 (i) for the deployment of— 8 (I) wireless broadband infrastruc- 9 ture in areas that the Commission has 10 determined are underserved or 11 unserved with respect to wireless 12 broadband internet access service; 13 (II) wired broadband infrastruc- 14 ture in areas that the Commission has 15 determined are underserved or 16 unserved with respect to wired 17 broadband internet access service; and 18 (III) broadband infrastructure to 19 support other technologies, including 20 telehealth, telemedicine, e-government, 21 and educational opportunities at 22 home; and 23 (ii) in conjunction with the National 24 911 Program overseen by the National 25 VerDate Sep 11 2014 23:00 Dec 03, 2019 Jkt 099200 PO 00000 Frm 00006 Fmt 6652 Sfmt 6201 E:\BILLS\S2956.IS S2956 lotter on DSKBCFDHB2PROD with BILLS 7 •S 2956 IS Telecommunications and Information Ad- 1 ministration and the National Highway 2 Traffic Safety Administration, for the de- 3 ployment of Next Generation 9–1–1 serv- 4 ices. 5 (B) LIMITATIONS.— 6 (i) RULEMAKING REQUIRED.— 7 (I) TIMING.—Not earlier than 8 January 1, 2023, the Commission 9 shall conduct a rulemaking to deter- 10 mine how to implement subparagraph 11 (A). 12 (II) OBLIGATION OF AMOUNTS.— 13 The Commission may not obligate any 14 amounts from the Digital Divide 15 Trust Fund under subparagraph (A) 16 until the Commission has conducted 17 the rulemaking under subclause (I) of 18 this clause. 19 (ii) RELATION TO UNIVERSAL SERV- 20 ICE PROGRAMS.—The amounts provided 21 under subparagraph (A) are not intended 22 to supplant any program established under 23 section 254 of the Communications Act of 24 1934 (47 U.S.C. 254). 25 VerDate Sep 11 2014 23:00 Dec 03, 2019 Jkt 099200 PO 00000 Frm 00007 Fmt 6652 Sfmt 6201 E:\BILLS\S2956.IS S2956 lotter on DSKBCFDHB2PROD with BILLS 8 •S 2956 IS SEC. 5. C-BAND REIMBURSEMENT FUND. 1 (a) ESTABLISHMENT.—There is established in the 2 Treasury of the United States a fund to be known as the 3 ‘‘C-Band Reimbursement Fund’’. 4 (b) BORROWING AUTHORITY.—The Commission may 5 borrow from the Treasury of the United States an amount 6 not to exceed $2,500,000,000 to use for payments re- 7 quired under subsection (d). 8 (c) DEPOSIT OF FUNDS.—Any amounts borrowed 9 under subsection (b) shall be deposited in the C-Band Re- 10 imbursement Fund. 11 (d) PAYMENT OF COSTS.—The Commission shall use 12 amounts in the C-Band Reimbursement Fund to reim- 13 burse costs reasonably incurred by— 14 (1) incumbent holders of licenses or market ac- 15 cess rights for use of the electromagnetic spectrum 16 identified under paragraph (1) of section 3(a), to re- 17 duce the usage of that spectrum by those entities in 18 accordance with that section; 19 (2) licensees or registrants of an earth station 20 receiving signals over the spectrum identified under 21 section 3(a)(1); and 22 (3) the relocation of other incumbent uses of 23 the spectrum identified under section 3(a)(1). 24 (e) TRANSFER OF UNUSED FUNDS.—If any amounts 25 remain in the C-Band Reimbursement Fund after the date 26 VerDate Sep 11 2014 23:00 Dec 03, 2019 Jkt 099200 PO 00000 Frm 00008 Fmt 6652 Sfmt 6201 E:\BILLS\S2956.IS S2956 lotter on DSKBCFDHB2PROD with BILLS 9 •S 2956 IS that is 3 years after the completion of the system of com- 1 petitive bidding conducted under section 3, the Secretary 2 of the Treasury shall transfer those amounts to the Digital 3 Divide Trust Fund. 4 SEC. 6. SPECTRUM AUCTION PARTICIPATION. 5 (a) IN GENERAL.—Section 309(j) of the Communica- 6 tions Act of 1934 (47 U.S.C. 309(j)) is amended— 7 (1) in paragraph (17)(A), in the matter pre- 8 ceding clause (i), by striking ‘‘Notwithstanding’’ and 9 inserting ‘‘Subject to paragraph (19) and notwith- 10 standing’’; and 11 (2) by adding at the end the following: 12 ‘‘(19) PROHIBITION ON AUCTION PARTICIPA- 13 TION BY ENTITIES POSING A NATIONAL SECURITY 14 RISK.— 15 ‘‘(A) IN GENERAL.—An entity posing a na- 16 tional security risk may not participate in any 17 system of competitive bidding under this sub- 18 section. 19 ‘‘(B) DEFINITION.— 20 ‘‘(i) IN GENERAL.—For purposes of 21 this paragraph, the term ‘entity posing a 22 national security risk’ means an entity that 23 the Commission determines poses a na- 24 tional security risk. 25 VerDate Sep 11 2014 23:00 Dec 03, 2019 Jkt 099200 PO 00000 Frm 00009 Fmt 6652 Sfmt 6201 E:\BILLS\S2956.IS S2956 lotter on DSKBCFDHB2PROD with BILLS 10 •S 2956 IS ‘‘(ii) DETERMINATION.—In deter- 1 mining which entities qualify as entities 2 posing a national security risk under this 3 paragraph, the Commission may rely solely 4 upon a determination by— 5 ‘‘(I) an appropriate national se- 6 curity agency; 7 ‘‘(II) an interagency body that 8 includes appropriate national security 9 expertise, including the Federal Ac- 10 quisition Security Council established 11 under section 1322 of title 41, United 12 States Code; 13 ‘‘(III) Congress; or 14 ‘‘(IV) the Secretary of Commerce 15 under the program established under 16 Executive Order 13873 (84 Fed. Reg. 17 22689; relating to securing informa- 18 tion and communications technology 19 and services supply chain) or by an 20 agency under any successor pro- 21 gram.’’. 22 (b) IMPLEMENTATION.—Not later than 1 year after 23 the date of enactment of this Act, the Commission shall 24 VerDate Sep 11 2014 23:00 Dec 03, 2019 Jkt 099200 PO 00000 Frm 00010 Fmt 6652 Sfmt 6201 E:\BILLS\S2956.IS S2956 lotter on DSKBCFDHB2PROD with BILLS 11 •S 2956 IS take all steps necessary to implement the amendments 1 made by subsection (a). 2 Æ VerDate Sep 11 2014 23:00 Dec 03, 2019 Jkt 099200 PO 00000 Frm 00011 Fmt 6652 Sfmt 6301 E:\BILLS\S2956.IS S2956 lotter on DSKBCFDHB2PROD with BILLS