text: SECTION 1. SHORT TITLE.
  
      This Act may be cited as the ``Federal Spectrum Incentive Act of 
  2013''.
  
  SEC. 2. FEDERAL SPECTRUM INCENTIVES.
  
      (a) Notice to Commission.--
              (1) In general.--Section 113(g)(4) of the National 
          Telecommunications and Information Administration Organization 
          Act (47 U.S.C. 923(g)(4)) is amended--
                      (A) by striking the heading and inserting ``Notice 
                  to commission.--'';
                      (B) in the second sentence of subparagraph (A), by 
                  striking ``shall notify the Commission'' and all that 
                  follows and inserting the following: ``shall notify the 
                  Commission--
                              ``(i) of estimated relocation or sharing 
                          costs and timelines for such relocation or 
                          sharing; or
                              ``(ii) that, instead of relocation or 
                          sharing costs under this subsection and section 
                          118, a Federal entity will receive payment 
                          under section 120 because such entity is--
                                      ``(I) discontinuing the operations 
                                  that the Federal entity conducts on 
                                  such eligible frequencies without 
                                  relocating such operations to other 
                                  frequencies; or
                                      ``(II) relocating such operations 
                                  to frequencies assigned to another 
                                  Federal entity in order for such 
                                  entities to share such frequencies.''; 
                                  and
                      (C) by adding at the end the following:
                      ``(D) This subsection and section 118 shall not 
                  apply with respect to the discontinuance of operations 
                  on eligible frequencies or the relocation of such 
                  operations by a Federal entity after the Commission 
                  receives notice under subparagraph (A)(ii) with respect 
                  to such discontinuance or relocation.''.
              (2) Conforming amendments.--Section 113(g) of the National 
          Telecommunications and Information Administration Organization 
          Act (47 U.S.C. 923(g)) is amended--
                      (A) in paragraph (3)(A)(iii)(I), by striking 
                  ``paragraph (4)(A)'' and inserting ``paragraph 
                  (4)(A)(i)'';
                      (B) in paragraph (4)--
                              (i) in subparagraph (B), by striking 
                          ``subparagraph (A)'' and inserting 
                          ``subparagraph (A)(i)''; and
                              (ii) in subparagraph (C), by striking 
                          ``subparagraphs (A) and (B)'' and inserting 
                          ``subparagraphs (A)(i) and (B)''; and
                      (C) in paragraph (5), by striking ``paragraph 
                  (4)(A)'' and inserting ``paragraph (4)(A)(i)''.
      (b) Transition Plans.--Section 113(h) of the National 
  Telecommunications and Information Administration Organization Act (47 
  U.S.C. 923(h)) is amended--
              (1) in the heading, by striking ``Relocation or Sharing'';
              (2) by amending paragraph (1) to read as follows:
              ``(1) Development of transition plan by federal entity.--
                      ``(A) In general.--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 in which the Federal 
                  entity--
                              ``(i) declares the intention of such 
                          entity--
                                      ``(I) to share such eligible 
                                  frequencies with a non-Federal user or 
                                  to relocate to other frequencies, and 
                                  to receive relocation or sharing costs 
                                  from the Spectrum Relocation Fund 
                                  established by section 118; or
                                      ``(II) to discontinue the 
                                  operations that the Federal entity 
                                  conducts on such eligible frequencies 
                                  without relocating such operations to 
                                  other frequencies or to relocate such 
                                  operations to frequencies assigned to 
                                  another Federal entity in order for 
                                  such entities to share such 
                                  frequencies, and to receive payment 
                                  from the Federal Spectrum Incentive 
                                  Fund established by section 120; and
                              ``(ii) describes how the entity will 
                          implement the relocation, sharing, or 
                          discontinuance arrangement.
                      ``(B) Common format.--The NTIA shall specify, after 
                  public input, a common format for all Federal entities 
                  to follow in preparing transition plans under this 
                  paragraph.'';
              (3) in paragraph (2)--
                      (A) in subparagraph (D), by inserting ``, to 
                  discontinue such use,'' after ``from such 
                  frequencies'';
                      (B) in subparagraph (F), by inserting ``, 
                  discontinuance,'' after ``relocation''; and
                      (C) in subparagraph (G), by striking ``The plans'' 
                  and inserting ``To the extent applicable given the 
                  intention declared by the entity under paragraph 
                  (1)(A)(i), the plans'';
              (4) in paragraph (4)(A), by inserting ``(if applicable)'' 
          after ``timelines and'';
              (5) in paragraph (6)--
                      (A) by inserting ``(if applicable)'' after 
                  ``costs''; and
                      (B) by inserting ``, discontinuance,'' after 
                  ``relocation'' the second place it appears; and
              (6) in paragraph (7)(A)(ii), by inserting ``, 
          discontinuance,'' after ``relocation''.
      (c) Relocation or Discontinuance Prioritized Over Sharing.--Section 
  113(j) of the National Telecommunications and Information 
  Administration Organization Act (47 U.S.C. 923(j)) is amended--
              (1) in the heading, by inserting ``or Discontinuance'' 
          after ``Relocation''; and
              (2) by inserting ``or discontinuance of the operations that 
          the Federal entity conducts on the band'' after ``from the 
          band'' each place it appears.
      (d) Deposit of Auction Proceeds.--Section 309(j)(8) of the 
  Communications Act of 1934 (47 U.S.C. 309(j)(8)) is amended--
              (1) in subparagraph (C)(i), by striking ``(D)(ii)'' and 
          inserting ``(D)(ii), (D)(iii)''; and
              (2) in subparagraph (D)--
                      (A) in clause (i), by striking ``clause (ii)'' and 
                  inserting ``clauses (ii) and (iii)''; and
                      (B) by adding at the end the following:
                              ``(iii) Federal spectrum incentives.--
                          Notwithstanding subparagraph (A) and except as 
                          provided in subparagraph (B) and clause (ii) of 
                          this subparagraph, in the case of proceeds 
                          (including deposits and upfront payments from 
                          successful bidders) attributable to the auction 
                          of eligible frequencies described in section 
                          113(g)(2) of the National Telecommunications 
                          and Information Administration Organization Act 
                          with respect to which the Commission has 
                          received notice under section 113(g)(4)(A)(ii) 
                          of such Act, 1 percent of such proceeds shall 
                          be deposited in the Federal Spectrum Incentive 
                          Fund established by section 120 of such Act and 
                          shall be available in accordance with such 
                          section. The remainder of such proceeds shall 
                          be deposited in the general fund of the 
                          Treasury, where such proceeds shall be 
                          dedicated for the sole purpose of deficit 
                          reduction.''.
      (e) Federal Spectrum Incentive Fund.--Part B 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. 120. FEDERAL SPECTRUM INCENTIVE FUND.
  
      ``(a) Establishment.--There is established in the Treasury of the 
  United States a fund to be known as the Federal Spectrum Incentive Fund 
  (in this section referred to as the `Fund'), which shall be 
  administered by the Office of Management and Budget (in this section 
  referred to as `OMB'), in consultation with the NTIA.
      ``(b) Transfer of Funds.--The Director of OMB shall transfer from 
  the Fund to a Federal entity an amount equal to the amount deposited in 
  accordance with section 309(j)(8)(D)(iii) of the Communications Act of 
  1934 that is attributable to the auction of eligible frequencies 
  described in section 113(g)(2) of this Act being vacated by such 
  entity. Such amount shall be available to the Federal entity in 
  accordance with subsection (c) and shall remain available until 
  expended.
      ``(c) Use of Funds.--A Federal entity may use an amount transferred 
  under subsection (b) for the following purposes:
              ``(1) Offset of sequestration.--Any purposes permitted 
          under the terms and conditions of an appropriations account of 
          the Federal entity that was subject to sequestration for any 
          fiscal year under the Balanced Budget and Emergency Deficit 
          Control Act of 1985. The amount used for such purposes under 
          this paragraph may not exceed the amount by which the amount 
          available to such entity under such account was reduced by 
          sequestration for such fiscal year.
              ``(2) Transfer to incumbent federal entity.--In the case of 
          a Federal entity that is relocating operations to frequencies 
          assigned to an incumbent Federal entity in order for such 
          entities to share such frequencies, to transfer an amount to 
          the incumbent Federal entity for any purposes permitted under 
          this subsection (except this paragraph). The transferred amount 
          shall remain available to the incumbent Federal entity until 
          expended.
      ``(d) Prohibition on Duplicative Payments.--If the Commission 
  receives notice under section 113(g)(4)(A)(ii) of a discontinuance of 
  operations on or relocation from eligible frequencies by a Federal 
  entity that has received, from the Spectrum Relocation Fund in 
  accordance with section 118(d)(3), relocation or sharing costs related 
  to pre-auction estimates or research with respect to such frequencies, 
  the Director of OMB shall deduct from the amount to be transferred to 
  such entity under subsection (b) an amount equal to such costs and 
  shall transfer such amount to the Spectrum Relocation Fund.''.
      (f) Department of Defense Spectrum.--Section 1062(b) of the 
  National Defense Authorization Act for Fiscal Year 2000 (Public Law 
  106-65) does not apply to frequencies with respect to which the 
  Commission has received notice under section 113(g)(4)(A)(ii) of the 
  National Telecommunications and Information Administration Organization 
  Act (47 U.S.C. 923(g)(4)(A)(ii)).
  
  SEC. 3. COSTS OF INCUMBENT FEDERAL ENTITIES RELATED TO SPECTRUM 
                SHARING.
  
      (a) Description of Eligible Federal Entities.--Section 113(g)(1) of 
  the National Telecommunications and Information Administration 
  Organization Act (47 U.S.C. 923(g)(1)) is amended--
              (1) by striking ``authorized to use a band of eligible 
          frequencies described in paragraph (2)'';
              (2) by striking ``spectrum frequencies'' the first place it 
          appears and inserting ``eligible frequencies described in 
          paragraph (2)''; and
              (3) by striking ``spectrum frequencies'' the second place 
          it appears and inserting ``eligible frequencies described in 
          such paragraph''.
      (b) Definition of Relocation or Sharing Costs.--Section 
  113(g)(3)(A) of the National Telecommunications and Information 
  Administration Organization Act (47 U.S.C. 923(g)(3)(A)) is amended--
              (1) in clause (iv)(II), by striking ``and'' at the end;
              (2) in clause (v), by striking the period and inserting ``; 
          and''; and
              (3) by adding at the end the following:
                              ``(vi) the costs incurred by an incumbent 
                          Federal entity to accommodate sharing the 
                          spectrum frequencies assigned to such entity 
                          with a Federal entity the operations of which 
                          are being relocated from eligible frequencies 
                          described in paragraph (2), unless the 
                          Commission receives notice under paragraph 
                          (4)(A)(ii)(II) with respect to the relocation 
                          of such operations.''.
      (c) Spectrum Relocation Fund.--Section 118 of the National 
  Telecommunications and Information Administration Organization Act (47 
  U.S.C. 928) is amended--
              (1) in subsection (c), by striking ``with respect to'' and 
          all that follows and inserting the following: ``with respect 
          to--
              ``(1) relocation from or sharing of such eligible 
          frequencies; or
              ``(2) in the case of an incumbent Federal entity described 
          in section 113(g)(3)(A)(vi), accommodating sharing the spectrum 
          frequencies assigned to such entity with a Federal entity the 
          operations of which are being relocated from such eligible 
          frequencies.''; and
              (2) in subsection (d)--
                      (A) in paragraph (2)(A), by inserting ``(or, in the 
                  case of an incumbent Federal entity described in 
                  section 113(g)(3)(A)(vi), the eligible Federal entity 
                  the operations of which are being relocated has 
                  submitted such a plan)'' after ``transition plan''; and
                      (B) in paragraph (3)(B)(ii), by inserting ``except 
                  in the case of an incumbent Federal entity described in 
                  section 113(g)(3)(A)(vi),'' before ``the transition 
                  plan''.
target: .  Federal Spectrum Incentive Act of 2013 - Amends the National Telecommunications and Information Administration Organization Act to allow federal entities that utilize government station licenses to participate in the incentive auction program under which licensees of electromagnetic spectrum voluntarily relinquish their spectrum rights in order for such spectrum to be auctioned for a repurposed commercial use in exchange for a percentage of the auction proceeds. Permits such federal entities, instead of being reimbursed for the costs of sharing frequencies with nonfederal users or relocating to other frequencies as provided for under current law, to receive a percentage of the proceeds from spectrum it relinquishes for auction by electing to: (1) discontinue operations on eligible frequencies without relocating to other frequencies, or (2) relocate operations to frequencies assigned to another federal entity in order for such entities to share frequencies. Establishes in the U.S. Treasury a Federal Spectrum Incentive Fund to be administered by the Office of Management and Budget (OMB) in consultation with the National Telecommunications and Information Administration (NTIA). Requires 1% of the proceeds from such auctions to be deposited in such Fund and the remainder to be deposited in the general fund of the Treasury for the sole purpose of deficit reduction. Directs OMB to transfer from the Fund to a federal entity a specified amount attributable to the auction of frequencies vacated by such entity. Permits federal entities to use such amounts for: (1) any purposes permitted under the terms and conditions of an appropriations account that was subject to sequestration for any fiscal year under the Balanced Budget and Emergency Deficit Control Act of 1985, provided that the amount used does not exceed the amount by which the account was reduced by sequestration for such fiscal year; or (2) a transfer of amounts to an incumbent federal entity for such purposes when the federal entity relinquishing spectrum relocates its operations to frequencies assigned to another federal entity in order to share frequencies.
feat_title: Federal Spectrum Incentive Act of 2013