Sec. 6402. GENERAL AUTHORITY FOR INCENTIVE AUCTIONS
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## SEC. 6402 GENERAL AUTHORITY FOR INCENTIVE AUCTIONS Section 309(j)(8) of the Communications Act of 1934, as amended by section 6401(c), is further amended by adding at the end the following: > > ##### “(G) Incentive auctions > > > ###### “(i) In general > > Notwithstanding subparagraph
(A)and except as provided in subparagraph (B), the Commission may encourage a licensee to relinquish voluntarily some or all of its licensed spectrum usage rights in order to permit the assignment of new initial licenses subject to flexible-use service rules by sharing with such licensee a portion, based on the value of the relinquished rights as determined in the reverse auction required by clause (ii)(I), of the proceeds (including deposits and upfront payments from successful bidders) from the use of a competitive bidding system under this subsection. > > > ###### “(ii) Limitations > > The Commission may not enter into an agreement for a licensee to relinquish spectrum usage rights in exchange for a share of auction proceeds under clause
(i)unless— > > > ###### “(I) > > the Commission conducts a reverse auction to determine the amount of compensation that licensees would accept in return for voluntarily relinquishing spectrum usage rights; and > > > ###### “(II) > > at least two competing licensees participate in the reverse auction. > > > ###### “(iii) Treatment of revenues > > Notwithstanding subparagraph
(A)and except as provided in subparagraph (B), the proceeds (including deposits and upfront payments from successful bidders) from any auction, prior to the end of fiscal year 2022, of spectrum usage rights made available under clause
(i)that are not shared with licensees under such clause shall be deposited as follows: > > > ###### “(I) > > $1,750,000,000 of the proceeds from the incentive auction of broadcast television spectrum required by section 6403 of the Middle Class Tax Relief and Job Creation Act of 2012 shall be deposited in the TV Broadcaster Relocation Fund established by subsection (d)(1) of such section. > > > ###### “(II) > > All other proceeds shall be deposited— > > > ###### “(aa) > > prior to the end of fiscal year 2022, in the Public Safety Trust Fund established by section 6413(a)(1) of such Act; and > > > ###### “(bb) > > after the end of fiscal year 2022, in the general fund of the Treasury, where such proceeds shall be dedicated for the sole purpose of deficit reduction. > > > ###### “(iv) Congressional notification > > At least 3 months before any incentive auction conducted under this subparagraph, the Chairman of the Commission, in consultation with the Director of the Office of Management and Budget, shall notify the appropriate committees of Congress of the methodology for calculating the amounts that will be shared with licensees under clause (i). > > > ###### “(v) Definition > > In this subparagraph, the term ‘appropriate committees of Congress’ means— > > > ###### “(I) > > the Committee on Commerce, Science, and Transportation of the Senate; > > > ###### “(II) > > the Committee on Appropriations of the Senate; > > > ###### “(III) > > the Committee on Energy and Commerce of the House of Representatives; and > > > ###### “(IV) > > the Committee on Appropriations of the House of Representatives.” > .