PUBL096.PS

PUBLIC LAW 112–96—FEB. 22, 2012

MIDDLE CLASS TAX RELIEF AND JOB

CREATION ACT OF 2012

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126 STAT. 156 PUBLIC LAW 112–96—FEB. 22, 2012

Public Law 112–96

112th Congress

An Act

To provide incentives for the creation of jobs, 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; TABLE OF CONTENTS.

(a) S

HORT

ITLE

.—This Act may be cited as the ‘‘Middle Class

Tax Relief and Job Creation Act of 2012’’.

(b) T

ABLE OF

ONTENTS

.—The table of contents for this Act

is as follows:

Sec. 1. Short title; table of contents.

TITLE I—EXTENSION OF PAYROLL TAX REDUCTION

Sec. 1001. Extension of payroll tax reduction.

TITLE II—UNEMPLOYMENT BENEFIT CONTINUATION AND PROGRAM

IMPROVEMENT

Sec. 2001. Short title.

Subtitle A—Reforms of Unemployment Compensation to Promote Work and Job

Creation

Sec. 2101. Consistent job search requirements.

Sec. 2102. State flexibility to promote the reemployment of unemployed workers.

Sec. 2103. Improving program integrity by better recovery of overpayments.

Sec. 2104. Data exchange standardization for improved interoperability.

Sec. 2105. Drug testing of applicants.

Subtitle B—Provisions Relating To Extended Benefits

Sec. 2121. Short title.

Sec. 2122. Extension and modification of emergency unemployment compensation

program.

Sec. 2123. Temporary extension of extended benefit provisions.

Sec. 2124. Additional extended unemployment benefits under the Railroad Unem-

ployment Insurance Act.

Subtitle C—Improving Reemployment Strategies Under the Emergency

Unemployment Compensation Program

Sec. 2141. Improved work search for the long-term unemployed.

Sec. 2142. Reemployment services and reemployment and eligibility assessment ac-

tivities.

Sec. 2143. Promoting program integrity through better recovery of overpayments.

Sec. 2144. Restore State flexibility to improve unemployment program solvency.

Subtitle D—Short-Time Compensation Program

Sec. 2160. Short title.

Sec. 2161. Treatment of short-time compensation programs.

Sec. 2162. Temporary financing of short-time compensation payments in States

with programs in law.

Sec. 2163. Temporary financing of short-time compensation agreements.

Sec. 2164. Grants for short-time compensation programs.

Sec. 2165. Assistance and guidance in implementing programs.

Middle Class Tax

Relief and Job

Creation Act

of 2012.

26 USC 1 note.

Feb. 22, 2012

[H.R. 3630]

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126 STAT. 157 PUBLIC LAW 112–96—FEB. 22, 2012

Sec. 2166. Reports.

Subtitle E—Self-Employment Assistance

Sec. 2181. State administration of self-employment assistance programs.

Sec. 2182. Grants for self-employment assistance programs.

Sec. 2183. Assistance and guidance in implementing self-employment assistance

programs.

Sec. 2184. Definitions.

TITLE III—MEDICARE AND OTHER HEALTH PROVISIONS

Subtitle A—Medicare Extensions

Sec. 3001. Extension of MMA section 508 reclassifications.

Sec. 3002. Extension of outpatient hold harmless payments.

Sec. 3003. Physician payment update.

Sec. 3004. Work geographic adjustment.

Sec. 3005. Payment for outpatient therapy services.

Sec. 3006. Payment for technical component of certain physician pathology services.

Sec. 3007. Ambulance add-on payments.

Subtitle B—Other Health Provisions

Sec. 3101. Qualifying individual program.

Sec. 3102. Transitional medical assistance.

Subtitle C—Health Offsets

Sec. 3201. Reduction of bad debt treated as an allowable cost.

Sec. 3202. Rebase Medicare clinical laboratory payment rates.

Sec. 3203. Rebasing State DSH allotments for fiscal year 2021.

Sec. 3204. Technical correction to the disaster recovery FMAP provision.

Sec. 3205. Prevention and Public Health Fund.

TITLE IV—TANF EXTENSION

Sec. 4001. Short title.

Sec. 4002. Extension of program.

Sec. 4003. Data exchange standardization for improved interoperability.

Sec. 4004. Spending policies for assistance under State TANF programs.

Sec. 4005. Technical corrections.

TITLE V—FEDERAL EMPLOYEES RETIREMENT

Sec. 5001. Increase in contributions to Federal Employees’ Retirement System for

new employees.

Sec. 5002. Foreign Service Pension System.

Sec. 5003. Central Intelligence Agency Retirement and Disability System.

TITLE VI—PUBLIC SAFETY COMMUNICATIONS AND ELECTROMAGNETIC

SPECTRUM AUCTIONS

Sec. 6001. Definitions.

Sec. 6002. Rule of construction.

Sec. 6003. Enforcement.

Sec. 6004. National security restrictions on use of funds and auction participation.

Subtitle A—Reallocation of Public Safety Spectrum

Sec. 6101. Reallocation of D block to public safety.

Sec. 6102. Flexible use of narrowband spectrum.

Sec. 6103. 470–512 MHz public safety spectrum.

Subtitle B—Governance of Public Safety Spectrum

Sec. 6201. Single public safety wireless network licensee.

Sec. 6202. Public safety broadband network.

Sec. 6203. Public Safety Interoperability Board.

Sec. 6204. Establishment of the First Responder Network Authority.

Sec. 6205. Advisory committees of the First Responder Network Authority.

Sec. 6206. Powers, duties, and responsibilities of the First Responder Network Au-

thority.

Sec. 6207. Initial funding for the First Responder Network Authority.

Sec. 6208. Permanent self-funding; duty to assess and collect fees for network use.

Sec. 6209. Audit and report.

Sec. 6210. Annual report to Congress.

Sec. 6211. Public safety roaming and priority access.

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126 STAT. 158 PUBLIC LAW 112–96—FEB. 22, 2012

Sec. 6212. Prohibition on direct offering of commercial telecommunications service

directly to consumers.

Sec. 6213. Provision of technical assistance.

Subtitle C—Public Safety Commitments

Sec. 6301. State and Local Implementation Fund.

Sec. 6302. State and local implementation.

Sec. 6303. Public safety wireless communications research and development.

Subtitle D—Spectrum Auction Authority

Sec. 6401. Deadlines for auction of certain spectrum.

Sec. 6402. General authority for incentive auctions.

Sec. 6403. Special requirements for incentive auction of broadcast TV spectrum.

Sec. 6404. Certain conditions on auction participation prohibited.

Sec. 6405. Extension of auction authority.

Sec. 6406. Unlicensed use in the 5 GHz band.

Sec. 6407. Guard bands and unlicensed use.

Sec. 6408. Study on receiver performance and spectrum efficiency.

Sec. 6409. Wireless facilities deployment.

Sec. 6410. Functional responsibility of NTIA to ensure efficient use of spectrum.

Sec. 6411. System certification.

Sec. 6412. Deployment of 11 GHz, 18 GHz, and 23 GHz microwave bands.

Sec. 6413. Public Safety Trust Fund.

Sec. 6414. Study on emergency communications by amateur radio and impediments

to amateur radio communications.

Subtitle E—Next Generation 9–1–1 Advancement Act of 2012

Sec. 6501. Short title.

Sec. 6502. Definitions.

Sec. 6503. Coordination of 9–1–1 implementation.

Sec. 6504. Requirements for multi-line telephone systems.

Sec. 6505. GAO study of State and local use of 9–1–1 service charges.

Sec. 6506. Parity of protection for provision or use of Next Generation 9–1–1 serv-

ices.

Sec. 6507. Commission proceeding on autodialing.

Sec. 6508. Report on costs for requirements and specifications of Next Generation

9–1–1 services.

Sec. 6509. Commission recommendations for legal and statutory framework for

Next Generation 9–1–1 services.

Subtitle F—Telecommunications Development Fund

Sec. 6601. No additional Federal funds.

Sec. 6602. Independence of the Fund.

Subtitle G—Federal Spectrum Relocation

Sec. 6701. Relocation of and spectrum sharing by Federal Government stations.

Sec. 6702. Spectrum Relocation Fund.

Sec. 6703. National security and other sensitive information.

TITLE VII—MISCELLANEOUS PROVISIONS

Sec. 7001. Repeal of certain shifts in the timing of corporate estimated tax pay-

ments.

Sec. 7002. Repeal of requirement relating to time for remitting certain merchandise

processing fees.

Sec. 7003. Treatment for PAYGO purposes.

TITLE I—EXTENSION OF PAYROLL TAX

REDUCTION

SEC. 1001. EXTENSION OF PAYROLL TAX REDUCTION.

(a) I

ENERAL

.—Subsection (c) of section 601 of the Tax Relief,

Unemployment Insurance Reauthorization, and Job Creation Act

of 2010 (26 U.S.C. 1401 note) is amended to read as follows:

‘‘(c) P

AYROLL

OLIDAY

ERIOD

.—The term ‘payroll tax holi-

day period’ means calendar years 2011 and 2012.’’.

(b) C

ONFORMING

MENDMENTS

.—Section 601 of such Act (26

U.S.C. 1401 note) is amended by striking subsections (f) and (g).

Definition.

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126 STAT. 159 PUBLIC LAW 112–96—FEB. 22, 2012

FFECTIVE

ATE

.—The amendments made by this section

shall apply to remuneration received, and taxable years beginning,

after December 31, 2011.

TITLE II—UNEMPLOYMENT BENEFIT

CONTINUATION AND PROGRAM IM-

PROVEMENT

SEC. 2001. SHORT TITLE.

This title may be cited as the ‘‘Extended Benefits, Reemploy-

ment, and Program Integrity Improvement Act’’.

Subtitle A—Reforms of Unemployment

Compensation to Promote Work and Job

Creation

SEC. 2101. CONSISTENT JOB SEARCH REQUIREMENTS.

(a) I

ENERAL

.—Section 303(a) of the Social Security Act

is amended by adding at the end the following:

‘‘(12) A requirement that, as a condition of eligibility for

regular compensation for any week, a claimant must be able

to work, available to work, and actively seeking work.’’.

(b) E

FFECTIVE

ATE

.—The amendment made by subsection (a)

shall apply to weeks beginning after the end of the first session

of the State legislature which begins after the date of enactment

of this Act.

SEC. 2102. STATE FLEXIBILITY TO PROMOTE THE REEMPLOYMENT

OF UNEMPLOYED WORKERS.

Title III of the Social Security Act (42 U.S.C. 501 and following)

is amended by adding at the end the following:

‘‘

DEMONSTRATION PROJECTS

‘‘S

. 305. (a) The Secretary of Labor may enter into agree-

ments, with up to 10 States that submit an application described

in subsection (b), for the purpose of allowing such States to conduct

demonstration projects to test and evaluate measures designed—

‘‘(1) to expedite the reemployment of individuals who have

established a benefit year and are otherwise eligible to claim

unemployment compensation under the State law of such State;

‘‘(2) to improve the effectiveness of a State in carrying

out its State law with respect to reemployment.

‘‘(b) The Governor of any State desiring to conduct a demonstra-

tion project under this section shall submit an application to the

Secretary of Labor. Any such application shall include—

‘‘(1) a general description of the proposed demonstration

project, including the authority (under the laws of the State)

for the measures to be tested, as well as the period of time

during which such demonstration project would be conducted;

‘‘(2) if a waiver under subsection (c) is requested, a state-

ment describing the specific aspects of the project to which

42 USC 505.

42 USC 503 note.

42 USC 503.

Extended

Benefits,

Reemployment,

and Program

Integrity

Improvement

Act.

State and local

governments.

26 USC 1 note.

26 USC 1401

note.

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126 STAT. 160 PUBLIC LAW 112–96—FEB. 22, 2012

the waiver would apply and the reasons why such waiver

is needed;

‘‘(3) a description of the goals and the expected pro-

grammatic outcomes of the demonstration project, including

how the project would contribute to the objective described

in subsection (a)(1), subsection (a)(2), or both;

‘‘(4) assurances (accompanied by supporting analysis) that

the demonstration project would operate for a period of at

least 1 calendar year and not result in any increased net

costs to the State’s account in the Unemployment Trust Fund;

‘‘(5) a description of the manner in which the State—

‘‘(A) will conduct an impact evaluation, using a method-

ology appropriate to determine the effects of the demonstra-

tion project, including on individual skill levels, earnings,

and employment retention; and

‘‘(B) will determine the extent to which the goals and

outcomes described in paragraph (3) were achieved;

‘‘(6) assurances that the State will provide any reports

relating to the demonstration project, after its approval, as

the Secretary of Labor may require; and

‘‘(7) assurances that employment meets the State’s suitable

work requirement and the requirements of section 3304(a)(5)

of the Internal Revenue Code of 1986.

‘‘(c) The Secretary of Labor may waive any of the requirements

of section 3304(a)(4) of the Internal Revenue Code of 1986 or of

paragraph (1) or (5) of section 303(a), to the extent and for the

period the Secretary of Labor considers necessary to enable the

State to carry out a demonstration project under this section.

‘‘(d) A demonstration project under this section—

‘‘(1) may be commenced any time after the date of enact-

ment of this section;

‘‘(2) may not be approved for a period of time greater

than 3 years; and

‘‘(3) must be completed by not later than December 31,

2015.

‘‘(e) Activities that may be pursued under a demonstration

project under this section are limited to—

‘‘(1) subsidies for employer-provided training, such as wage

subsidies; and

‘‘(2) direct disbursements to employers who hire individuals

receiving unemployment compensation, not to exceed the

weekly benefit amount for each such individual, to pay part

of the cost of wages that exceed the unemployed individual’s

prior benefit level.

‘‘(f) The Secretary of Labor shall, in the case of any State

for which an application is submitted under subsection (b)—

‘‘(1) notify the State as to whether such application has

been approved or denied within 30 days after receipt of a

complete application; and

‘‘(2) provide public notice of the decision within 10 days

after providing notification to the State in accordance with

paragraph (1).

Public notice under paragraph (2) may be provided through the

Internet or other appropriate means. Any application under this

section that has not been denied within the 30-day period described

in paragraph (1) shall be deemed approved, and public notice of

Notice.

Notification.

Time periods.

Deadline.

Time period.

Waiver authority.

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126 STAT. 161 PUBLIC LAW 112–96—FEB. 22, 2012

any approval under this sentence shall be provided within 10 days

thereafter.

‘‘(g) The Secretary of Labor may terminate a demonstration

project under this section if the Secretary determines that the

State has violated the substantive terms or conditions of the project.

‘‘(h) Funding certified under section 302(a) may be used for

an approved demonstration project.’’.

SEC. 2103. IMPROVING PROGRAM INTEGRITY BY BETTER RECOVERY

OF OVERPAYMENTS.

(a) U

SE OF

NEMPLOYMENT

OMPENSATION TO

EPAY

VERPAY

MENTS

.—Section 3304(a)(4)(D) of the Internal Revenue Code of 1986

and section 303(g)(1) of the Social Security Act are each amended

by striking ‘‘may’’ and inserting ‘‘shall’’.

(b) U

SE OF

NEMPLOYMENT

OMPENSATION TO

EPAY

EDERAL

DDITIONAL

OMPENSATION

VERPAYMENTS

.—Section 303(g)(3) of

the Social Security Act is amended by inserting ‘‘Federal additional

compensation,’’ after ‘‘trade adjustment allowances,’’.

FFECTIVE

ATE

.—The amendments made by this section

shall apply to weeks beginning after the end of the first session

of the State legislature which begins after the date of enactment

of this Act.

SEC. 2104. DATA EXCHANGE STANDARDIZATION FOR IMPROVED INTER-

OPERABILITY.

(a) I

ENERAL

.—Title IX of the Social Security Act is amended

by adding at the end the following:

‘‘

DATA EXCHANGE STANDARDIZATION FOR IMPROVED

INTEROPERABILITY

‘‘Data Exchange Standards

‘‘S

. 911. (a)(1) The Secretary of Labor, in consultation with

an interagency work group which shall be established by the Office

of Management and Budget, and considering State and employer

perspectives, shall, by rule, designate a data exchange standard

for any category of information required under title III, title XII,

or this title.

‘‘(2) Data exchange standards designated under paragraph (1)

shall, to the extent practicable, be nonproprietary and interoperable.

‘‘(3) In designating data exchange standards under this sub-

section, the Secretary of Labor shall, to the extent practicable,

incorporate—

‘‘(A) interoperable standards developed and maintained by

an international voluntary consensus standards body, as

defined by the Office of Management and Budget, such as

the International Organization for Standardization;

‘‘(B) interoperable standards developed and maintained by

intergovernmental partnerships, such as the National Informa-

tion Exchange Model; and

‘‘(C) interoperable standards developed and maintained by

Federal entities with authority over contracting and financial

assistance, such as the Federal Acquisition Regulations Council.

Establishment.

Regulations.

42 USC 1111.

26 USC 3304

note.

26 USC 3304;

42 USC 503.

Determination.

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126 STAT. 162 PUBLIC LAW 112–96—FEB. 22, 2012

‘‘Data Exchange Standards for Reporting

‘‘(b)(1) The Secretary of Labor, in consultation with an inter-

agency work group established by the Office of Management and

Budget, and considering State and employer perspectives, shall,

by rule, designate data exchange standards to govern the reporting

required under title III, title XII, or this title.

‘‘(2) The data exchange standards required by paragraph (1)

shall, to the extent practicable—

‘‘(A) incorporate a widely accepted, nonproprietary, search-

able, computer-readable format;

‘‘(B) be consistent with and implement applicable

accounting principles; and

‘‘(C) be capable of being continually upgraded as necessary.

‘‘(3) In designating reporting standards under this subsection,

the Secretary of Labor shall, to the extent practicable, incorporate

existing nonproprietary standards, such as the eXtensible Markup

Language.’’.

(b) E

FFECTIVE

ATES

.—

(1) D

ATA EXCHANGE STANDARDS

.—The Secretary of Labor

shall issue a proposed rule under section 911(a)(1) of the Social

Security Act (as added by subsection (a)) within 12 months

after the date of the enactment of this section, and shall issue

a final rule under such section 911(a)(1), after public comment,

within 24 months after such date of enactment.

(2) D

ATA REPORTING STANDARDS

.—The reporting standards

required under section 911(b)(1) of such Act (as so added)

shall become effective with respect to reports required in the

first reporting period, after the effective date of the final rule

referred to in paragraph (1) of this subsection, for which the

authority for data collection and reporting is established or

renewed under the Paperwork Reduction Act.

SEC. 2105. DRUG TESTING OF APPLICANTS.

Section 303 of the Social Security Act is amended by adding

at the end the following:

‘‘(l)(1) Nothing in this Act or any other provision of Federal

law shall be considered to prevent a State from enacting legislation

to provide for—

‘‘(A) testing an applicant for unemployment compensation

for the unlawful use of controlled substances as a condition

for receiving such compensation, if such applicant—

‘‘(i) was terminated from employment with the

applicant’s most recent employer (as defined under the

State law) because of the unlawful use of controlled sub-

stances; or

‘‘(ii) is an individual for whom suitable work (as defined

under the State law) is only available in an occupation

that regularly conducts drug testing (as determined under

regulations issued by the Secretary of Labor); or

‘‘(B) denying such compensation to such applicant on the

basis of the result of the testing conducted by the State under

legislation described in subparagraph (A).

‘‘(2) For purposes of this subsection—

‘‘(A) the term ‘unemployment compensation’ has the

meaning given such term in subsection (d)(2)(A); and

Definitions.

Regulations.

42 USC 305.

42 USC 1111

note.

Time periods.

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126 STAT. 163 PUBLIC LAW 112–96—FEB. 22, 2012

‘‘(B) the term ‘controlled substance’ has the meaning given

such term in section 102 of the Controlled Substances Act

(21 U.S.C. 802).’’.

Subtitle B—Provisions Relating To

Extended Benefits

SEC. 2121. SHORT TITLE.

This subtitle may be cited as the ‘‘Unemployment Benefits

Extension Act of 2012’’.

SEC. 2122. EXTENSION AND MODIFICATION OF EMERGENCY

UNEMPLOYMENT COMPENSATION PROGRAM.

(a) E

XTENSION

.—Section 4007 of the Supplemental Appropria-

tions Act, 2008 (Public Law 110–252; 26 U.S.C. 3304 note) is

amended—

(1) in subsection (a)—

(A) by striking ‘‘Except as provided in subsection (b),

an’’ and inserting ‘‘An’’; and

(B) by striking ‘‘March 6, 2012’’ and inserting ‘‘January

2, 2013’’; and

(2) by striking subsection (b) and inserting the following:

‘‘(b) T

ERMINATION

.—No compensation under this title shall be

payable for any week subsequent to the last week described in

subsection (a).’’.

(b) M

ODIFICATIONS

ELATING TO

RIGGERS

.—

(1) F

OR SECOND

TIER EMERGENCY UNEMPLOYMENT COM

PENSATION

.—Section 4002(c) of such Act is amended—

(A) in the subsection heading, by striking ‘‘S

PECIAL

ULE

’’ and inserting ‘‘S

ECOND

TIER

MERGENCY

NEMPLOY

MENT

OMPENSATION

’’;

(B) in paragraph (1), by striking ‘‘At’’ and all that

follows through ‘‘augmented by an amount’’ and inserting

‘‘If, at the time that the amount established in an individ-

ual’s account under subsection (b) is exhausted or at any

time thereafter, such individual’s State is in an extended

benefit period (as determined under paragraph (2)), such

account shall be augmented by an amount (hereinafter

‘second-tier emergency unemployment compensation’)’’;

and

(D) by inserting after paragraph (1) the following:

‘‘(2) E

XTENDED BENEFIT PERIOD

.—For purposes of para-

graph (1), a State shall be considered to be in an extended

benefit period, as of any given time, if such a period would

then be in effect for such State under such Act if—

‘‘(A) section 203(f) of the Federal-State Extended

Unemployment Compensation Act of 1970 were applied

to such State (regardless of whether the State by law

had provided for such application); and

‘‘(B) such section 203(f)—

‘‘(i) were applied by substituting the applicable

percentage under paragraph (3) for ‘6.5 percent’ in

paragraph (1)(A)(i) thereof; and

‘‘(ii) did not include the requirement under para-

graph (1)(A)(ii) thereof.

Applicability.

26 USC 3304

note.

26 USC 1 note.

Unemployment

Benefits

Extension Act

of 2012.

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126 STAT. 164 PUBLIC LAW 112–96—FEB. 22, 2012

‘‘(3) A

PPLICABLE PERCENTAGE

.—The applicable percentage

under this paragraph is, for purposes of determining if a State

is in an extended benefit period as of a date occurring in

a week ending—

‘‘(A) before June 1, 2012, 0 percent; and

‘‘(B) after the last week under subparagraph (A), 6

percent.’’.

(2) F

OR THIRD

TIER EMERGENCY UNEMPLOYMENT COMPENSA

TION

.—Section 4002(d) of such Act is amended—

(A) in paragraph (2)(A), by striking ‘‘under such Act’’

and inserting ‘‘under the Federal-State Extended

Unemployment Compensation Act of 1970’’;

(B) in paragraph (2)(B)(ii)(I), by striking the matter

after ‘‘substituting’’ and before ‘‘in paragraph (1)(A)(i)

thereof’’ and inserting ‘‘the applicable percentage under

paragraph (3) for ‘6.5 percent’ ’’;

and

(D) by inserting after paragraph (2) the following:

‘‘(3) A

PPLICABLE PERCENTAGE

.—The applicable percentage

under this paragraph is, for purposes of determining if a State

is in an extended benefit period as of a date occurring in

a week ending—

‘‘(A) before June 1, 2012, 6 percent; and

‘‘(B) after the last week under subparagraph (A), 7

percent.’’.

(3) F

OR FOURTH

TIER EMERGENCY UNEMPLOYMENT COM

PENSATION

.—Section 4002(e) of such Act is amended—

(A) in paragraph (2)(A), by striking ‘‘under such Act’’

and inserting ‘‘under the Federal-State Extended

Unemployment Compensation Act of 1970’’;

(B) in paragraph (2)(B)(ii)(I), by striking the matter

after ‘‘substituting’’ and before ‘‘in paragraph (1)(A)(i)

thereof’’ and inserting ‘‘the applicable percentage under

paragraph (3) for ‘6.5 percent’ ’’;

and

(D) by inserting after paragraph (2) the following:

‘‘(3) A

PPLICABLE PERCENTAGE

.—The applicable percentage

under this paragraph is, for purposes of determining if a State

is in an extended benefit period as of a date occurring in

a week ending—

‘‘(A) before June 1, 2012, 8.5 percent; and

‘‘(B) after the last week under subparagraph (A), 9

percent.’’.

ODIFICATIONS

ELATING TO

EEKS OF

MERGENCY

NEMPLOYMENT

OMPENSATION

.—

(1) N

UMBER OF WEEKS IN FIRST TIER BEGINNING AFTER

SEPTEMBER 2

2012

.—Section 4002(b) of such Act is amended—

(A) by redesignating paragraph (2) as paragraph (3);

and

(B) by inserting after paragraph (1) the following:

‘‘(2) S

PECIAL RULE RELATING TO AMOUNTS ESTABLISHED IN

AN ACCOUNT AS OF A WEEK ENDING AFTER SEPTEMBER 2

2012

.—

Notwithstanding any provision of paragraph (1), in the case

of any account established as of a week ending after September

2, 2012—

Applicability.

26 USC 3304

note.

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126 STAT. 165 PUBLIC LAW 112–96—FEB. 22, 2012

‘‘(A) paragraph (1)(A) shall be applied by substituting

‘54 percent’ for ‘80 percent’; and

‘‘(B) paragraph (1)(B) shall be applied by substituting

‘14 weeks’ for ‘20 weeks’.’’.

(2) N

UMBER OF WEEKS IN THIRD TIER BEGINNING AFTER

SEPTEMBER 2

2012

.—Section 4002(d) of such Act is amended

by adding after paragraph (4) (as so redesignated by subsection

(b)(2)(C)) the following:

‘‘(5) S

PECIAL RULE RELATING TO AMOUNTS ADDED TO AN

ACCOUNT AS OF A WEEK ENDING AFTER SEPTEMBER 2

2012

.—

Notwithstanding any provision of paragraph (1), if augmenta-

tion under this subsection occurs as of a week ending after

September 2, 2012—

‘‘(A) paragraph (1)(A) shall be applied by substituting

‘35 percent’ for ‘50 percent’; and

‘‘(B) paragraph (1)(B) shall be applied by substituting

‘9 times’ for ‘13 times’.’’.

(3) N

UMBER OF WEEKS IN FOURTH TIER

.—Section 4002(e)

of such Act is amended by adding after paragraph (4) (as

so redesignated by subsection (b)(3)(C)) the following:

‘‘(5) S

PECIAL RULES RELATING TO AMOUNTS ADDED TO AN

ACCOUNT

.—

‘‘(A) M

ARCH TO MAY OF 2012

.—

‘‘(i) S

PECIAL RULE

.—Notwithstanding any provision

of paragraph (1) but subject to the following 2 sen-

tences, if augmentation under this subsection occurs

as of a week ending after the date of enactment of

this paragraph and before June 1, 2012 (or if, as of

such date of enactment, any fourth-tier amounts

remain in the individual’s account)—

‘‘(I) paragraph (1)(A) shall be applied by sub-

stituting ‘62 percent’ for ‘24 percent’; and

‘‘(II) paragraph (1)(B) shall be applied by sub-

stituting ‘16 times’ for ‘6 times’.

The preceding sentence shall apply only if, at the time

that the account would be augmented under this

subparagraph, such individual’s State is not in an

extended benefit period as determined under the Fed-

eral-State Extended Unemployment Compensation Act

of 1970. In no event shall the total amount added

to the account of an individual under this subpara-

graph cause, in the case of an individual described

in the parenthetical matter in the first sentence of

this clause, the sum of the total amount previously

added to such individual’s account under this sub-

section (as in effect before the date of enactment of

this paragraph) and any further amounts added as

a result of the enactment of this clause, to exceed

the total amount allowable under subclause (I) or (II),

as the case may be.

‘‘(ii) L

IMITATION

.—Notwithstanding any other

provision of this title, the amounts added to the account

of an individual under this subparagraph may not

cause the sum of the amounts previously established

in or added to such account, plus any weeks of extended

benefits provided to such individual under the Federal-

State Extended Unemployment Compensation Act of

Applicability.

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126 STAT. 166 PUBLIC LAW 112–96—FEB. 22, 2012

1970 (based on the same exhaustion of regular com-

pensation under section 4001(b)(1)), to in the aggregate

exceed the lesser of—

‘‘(I) 282 percent of the total amount of regular

compensation (including dependents’ allowances)

payable to the individual during the individual’s

benefit year under the State law; or

‘‘(II) 73 times the individual’s average weekly

benefit amount (as determined under subsection

(b)(3)) for the benefit year.

‘‘(B) A

FTER AUGUST OF 2012

.—Notwithstanding any

provision of paragraph (1), if augmentation under this sub-

section occurs as of a week ending after September 2,

2012—

‘‘(i) paragraph (1)(A) shall be applied by sub-

stituting ‘39 percent’ for ‘24 percent’; and

‘‘(ii) paragraph (1)(B) shall be applied by sub-

stituting ‘10 times’ for ‘6 times’.’’.

(d) O

RDER OF

AYMENTS

EQUIREMENT

.—

(1) I

N GENERAL

.—Section 4001(e) of such Act is amended

to read as follows:

‘‘(e) C

OORDINATION

ULE

.—An agreement under this section

shall apply with respect to a State only upon a determination

by the Secretary that, under the State law or other applicable

rules of such State, the payment of extended compensation for

which an individual is otherwise eligible must be deferred until

after the payment of any emergency unemployment compensation

under section 4002, as amended by the Unemployment Benefits

Extension Act of 2012, for which the individual is concurrently

eligible.’’.

(2) T

ECHNICAL AND CONFORMING AMENDMENTS

.—Section

4001(b)(2) of such Act is amended—

(A) by striking ‘‘or extended compensation’’; and

(B) by striking ‘‘law (except as provided under sub-

section (e));’’ and inserting ‘‘law;’’.

(e) F

UNDING

.—Section 4004(e)(1) of such Act is amended—

(1) in subparagraph (G), by striking ‘‘and’’ at the end;

and

(2) by inserting after subparagraph (H) the following:

‘‘(I) the amendments made by section 2122 of the

Unemployment Benefits Extension Act of 2012; and’’.

(f) E

FFECTIVE

ATES

.—

(1) I

N GENERAL

.—The amendments made by subsections

(b), (c), and (d) shall take effect as of February 28, 2012,

and shall apply with respect to weeks of unemployment begin-

ning after that date.

(2) W

EEK DEFINED

.—For purposes of this subsection, the

term ‘‘week’’ has the meaning given such term under section

4006 of the Supplemental Appropriations Act, 2008.

SEC. 2123. TEMPORARY EXTENSION OF EXTENDED BENEFIT PROVI-

SIONS.

(a) I

ENERAL

.—Section 2005 of the Assistance for

Unemployed Workers and Struggling Families Act, as contained

in Public Law 111–5 (26 U.S.C. 3304 note), is amended—

(1) by striking ‘‘March 7, 2012’’ each place it appears and

inserting ‘‘December 31, 2012’’; and

26 USC 3304

note.

26 USC 3304

note.

Applicability.

Determination.

26 USC 3304

note.

Applicability.

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126 STAT. 167 PUBLIC LAW 112–96—FEB. 22, 2012

(2) in subsection (c), by striking ‘‘August 15, 2012’’ and

inserting ‘‘June 30, 2013’’.

(b) E

XTENSION OF

ATCHING FOR

TATES

ITH

AITING

EEK

.—Section 5 of the Unemployment Compensation Extension

Act of 2008 (Public Law 110–449; 26 U.S.C. 3304 note) is amended

by striking ‘‘August 15, 2012’’ and inserting ‘‘June 30, 2013’’.

XTENSION OF

ODIFICATION OF

NDICATORS

NDER THE

XTENDED

ENEFIT

ROGRAM

.—Section 203 of the Federal-State

Extended Unemployment Compensation Act of 1970 (26 U.S.C.

3304 note) is amended—

(1) in subsection (d), by striking ‘‘February 29, 2012’’ and

inserting ‘‘December 31, 2012’’; and

(2) in subsection (f)(2), by striking ‘‘February 29, 2012’’

and inserting ‘‘December 31, 2012’’.

(d) E

FFECTIVE

ATE

.—The amendments made by this section

shall take effect as if included in the enactment of the Temporary

Payroll Tax Cut Continuation Act of 2011 (Public Law 112–78).

SEC. 2124. ADDITIONAL EXTENDED UNEMPLOYMENT BENEFITS UNDER

THE RAILROAD UNEMPLOYMENT INSURANCE ACT.

(a) E

XTENSION

.—Section 2(c)(2)(D)(iii) of the Railroad

Unemployment Insurance Act, as added by section 2006 of the

American Recovery and Reinvestment Act of 2009 (Public Law

111–5) and as amended by section 9 of the Worker, Homeownership,

and Business Assistance Act of 2009 (Public Law 111–92), section

505 of the Tax Relief, Unemployment Insurance Reauthorization,

and Job Creation Act of 2010 (Public Law 111–312), and section

202 of the Temporary Payroll Tax Cut Continuation Act of 2011

(Public Law 112–78), is amended—

(1) by striking ‘‘August 31, 2011’’ and inserting ‘‘June 30,

2012’’; and

(2) by striking ‘‘February 29, 2012’’ and inserting

‘‘December 31, 2012’’.

(b) C

LARIFICATION ON

UTHORITY TO

UNDS

.—Funds

appropriated under either the first or second sentence of clause

(iv) of section 2(c)(2)(D) of the Railroad Unemployment Insurance

Act shall be available to cover the cost of additional extended

unemployment benefits provided under such section 2(c)(2)(D) by

reason of the amendments made by subsection (a) as well as to

cover the cost of such benefits provided under such section

2(c)(2)(D), as in effect on the day before the date of enactment

of this Act.

UNDING FOR

DMINISTRATION

.—Out of any funds in the

Treasury not otherwise appropriated, there are appropriated to

the Railroad Retirement Board $500,000 for administrative

expenses associated with the payment of additional extended

unemployment benefits provided under section 2(c)(2)(D) of the

Railroad Unemployment Insurance Act by reason of the amend-

ments made by subsection (a), to remain available until expended.

Appropriation

authorization.

45 USC 352.

26 USC 3304

note.

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126 STAT. 168 PUBLIC LAW 112–96—FEB. 22, 2012

Subtitle C—Improving Reemployment

Strategies Under the Emergency Unem-

ployment Compensation Program

SEC. 2141. IMPROVED WORK SEARCH FOR THE LONG-TERM

UNEMPLOYED.

(a) I

ENERAL

.—Section 4001(b) of the Supplemental Appro-

priations Act, 2008 (Public Law 110–252; 26 U.S.C. 3304 note)

is amended—

(1) by striking ‘‘and’’ at the end of paragraph (2);

(2) by striking the period at the end of paragraph (3)

and inserting ‘‘; and’’; and

(3) by adding at the end the following:

‘‘(4) are able to work, available to work, and actively

seeking work.’’.

(b) A

CTIVELY

EEKING

ORK

.—Section 4001 of such Act is

amended by adding at the end the following:

‘‘(h) A

CTIVELY

EEKING

ORK

.—

‘‘(1) I

N GENERAL

.—For purposes of subsection (b)(4), the

term ‘actively seeking work’ means, with respect to any indi-

vidual, that such individual—

‘‘(A) is registered for employment services in such a

manner and to such extent as prescribed by the State

agency;

‘‘(B) has engaged in an active search for employment

that is appropriate in light of the employment available

in the labor market, the individual’s skills and capabilities,

and includes a number of employer contacts that is con-

sistent with the standards communicated to the individual

by the State;

‘‘(C) has maintained a record of such work search,

including employers contacted, method of contact, and date

contacted; and

‘‘(D) when requested, has provided such work search

record to the State agency.

‘‘(2) R

ANDOM AUDITING

.—The Secretary shall establish for

each State a minimum number of claims for which work search

records must be audited on a random basis in any given week.’’.

SEC. 2142. REEMPLOYMENT SERVICES AND REEMPLOYMENT AND

ELIGIBILITY ASSESSMENT ACTIVITIES.

(a) P

ROVISION OF

ERVICES AND

CTIVITIES

.—Section 4001 of

such Act, as amended by section 2141(b), is further amended by

adding at the end the following:

‘‘(i) P

ROVISION OF

ERVICES AND

CTIVITIES

.—

‘‘(1) I

N GENERAL

.—An agreement under this section shall

require the following:

‘‘(A) The State which is party to such agreement shall

provide reemployment services and reemployment and

eligibility assessment activities to each individual—

‘‘(i) who, on or after the 30th day after the date

of enactment of the Extended Benefits, Reemployment,

and Program Integrity Improvement Act, begins

receiving amounts described in subsections (b) and (c);

and

Claims.

Definition.

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126 STAT. 169 PUBLIC LAW 112–96—FEB. 22, 2012

‘‘(ii) while such individual continues to receive

emergency unemployment compensation under this

title.

‘‘(B) As a condition of eligibility for emergency

unemployment compensation for any week—

‘‘(i) a claimant who has been duly referred to

reemployment services shall participate in such serv-

ices; and

‘‘(ii) a claimant shall be actively seeking work

(determined applying subsection (i)).

‘‘(2) D

ESCRIPTION OF SERVICES AND ACTIVITIES

.—The

reemployment services and in-person reemployment and eligi-

bility assessment activities provided to individuals receiving

emergency unemployment compensation described in paragraph

(1)—

‘‘(A) shall include—

‘‘(i) the provision of labor market and career

information;

‘‘(ii) an assessment of the skills of the individual;

‘‘(iii) orientation to the services available through

the one-stop centers established under title I of the

Workforce Investment Act of 1998; and

‘‘(iv) review of the eligibility of the individual for

emergency unemployment compensation relating to the

job search activities of the individual; and

‘‘(B) may include the provision of—

‘‘(i) comprehensive and specialized assessments;

‘‘(ii) individual and group career counseling;

‘‘(iii) training services;

‘‘(iv) additional reemployment services; and

‘‘(v) job search counseling and the development

or review of an individual reemployment plan that

includes participation in job search activities and

appropriate workshops.

‘‘(3) P

ARTICIPATION REQUIREMENT

.—As a condition of con-

tinuing eligibility for emergency unemployment compensation

for any week, an individual who has been referred to reemploy-

ment services or reemployment and eligibility assessment

activities under this subsection shall participate in such serv-

ices or activities, unless the State agency responsible for the

administration of State unemployment compensation law deter-

mines that—

‘‘(A) such individual has completed participating in

such services or activities; or

‘‘(B) there is justifiable cause for failure to participate

or to complete participating in such services or activities,

as determined in accordance with guidance to be issued

by the Secretary.’’.

(b) I

SSUANCE OF

UIDANCE

.—Not later than 30 days after the

date of enactment of this Act, the Secretary shall issue guidance

on the implementation of the reemployment services and reemploy-

ment and eligibility assessment activities required to be provided

under the amendment made by subsection (a).

UNDING

.—

(1) I

N GENERAL

.—Section 4004(c) of the Supplemental

Appropriations Act, 2008 (Public Law 110–252; 26 U.S.C. 3304

note) is amended—

Deadline.

26 USC 3304

note.

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126 STAT. 170 PUBLIC LAW 112–96—FEB. 22, 2012

(A) by striking ‘‘S

TATES

.—There’’ and inserting the fol-

lowing: ‘‘S

TATES

.—

‘‘(1) A

DMINISTRATION

.—There’’; and

(B) by adding at the end the following new paragraph:

‘‘(2) R

EEMPLOYMENT SERVICES AND REEMPLOYMENT AND

ELIGIBILITY ASSESSMENT ACTIVITIES

.—

‘‘(A) A

PPROPRIATION

.—There are appropriated from the

general fund of the Treasury, for the period of fiscal year

2012 through fiscal year 2013, out of the employment secu-

rity administration account (as established by section

901(a) of the Social Security Act), such sums as determined

by the Secretary of Labor in accordance with subparagraph

(B) to assist States in providing reemployment services

and reemployment and eligibility assessment activities

described in section 4001(h)(2).

‘‘(B) D

ETERMINATION OF TOTAL AMOUNT

.—The amount

referred to in subparagraph (A) is the amount the Secretary

of Labor estimates is equal to—

‘‘(i) the number of individuals who will receive

reemployment services and reemployment eligibility

and assessment activities described in section

4001(h)(2) in all States through the date specified in

section 4007(b)(3); multiplied by

‘‘(ii) $85.

‘‘(C) D

ISTRIBUTION AMONG STATES

.—Of the amounts

appropriated under subparagraph (A), the Secretary of

Labor shall distribute amounts to each State, in accordance

with section 4003(c), that the Secretary estimates is equal

to—

‘‘(i) the number of individuals who will receive

reemployment services and reemployment and eligi-

bility assessment activities described in section

4001(h)(2) in such State through the date specified

in section 4007(b)(3); multiplied by

‘‘(ii) $85.’’.

(2) T

RANSFER OF FUNDS

.—Section 4004(e) of the Supple-

mental Appropriations Act, 2008 (Public Law 110–252; 26

U.S.C. 3304 note) is amended—

(A) in paragraph (1)(G), by striking ‘‘and’’ at the end;

(B) in paragraph (2), by striking the period at the

end and inserting ‘‘; and’’; and

‘‘(3) to the Employment Security Administration account

(as established by section 901(a) of the Social Security Act)

such sums as the Secretary of Labor determines to be necessary

in accordance with subsection (c)(2) to assist States in providing

reemployment services and reemployment eligibility and assess-

ment activities described in section 4001(h)(2).’’.

SEC. 2143. PROMOTING PROGRAM INTEGRITY THROUGH BETTER

RECOVERY OF OVERPAYMENTS.

Section 4005(c)(1) of the Supplemental Appropriations Act, 2008

(Public Law 110–252; 26 U.S.C. 3304 note) is amended—

(1) by striking ‘‘may’’ and inserting ‘‘shall’’; and

(2) by striking ‘‘except that’’ and all that follows through

‘‘made’’ and inserting ‘‘in accordance with the same procedures

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126 STAT. 171 PUBLIC LAW 112–96—FEB. 22, 2012

as apply to the recovery of overpayments of regular unemploy-

ment benefits paid by the State’’.

SEC. 2144. RESTORE STATE FLEXIBILITY TO IMPROVE UNEMPLOY-

MENT PROGRAM SOLVENCY.

Subsection (g) of section 4001 of the Supplemental Appropria-

tions Act, 2008 (Public Law 110–252; 26 U.S.C. 3304 note) shall

not apply with respect to a State that has enacted a law before

March 1, 2012, that, upon taking effect, would violate such sub-

section.

Subtitle D—Short-Time Compensation

Program

SEC. 2160. SHORT TITLE.

This subtitle may be cited as the ‘‘Layoff Prevention Act of

2012’’.

SEC. 2161. TREATMENT OF SHORT-TIME COMPENSATION PROGRAMS.

(a) D

EFINITION

.—

(1) I

N GENERAL

.—Section 3306 of the Internal Revenue

Code of 1986 (26 U.S.C. 3306) is amended by adding at the

end the following new subsection:

‘‘(v) S

HORT

-T

IME

OMPENSATION

ROGRAM

.—For purposes of

this part, the term ‘short-time compensation program’ means a

program under which—

‘‘(1) the participation of an employer is voluntary;

‘‘(2) an employer reduces the number of hours worked

by employees in lieu of layoffs;

‘‘(3) such employees whose workweeks have been reduced

by at least 10 percent, and by not more than the percentage,

if any, that is determined by the State to be appropriate (but

in no case more than 60 percent), are not disqualified from

unemployment compensation;

‘‘(4) the amount of unemployment compensation payable

to any such employee is a pro rata portion of the unemployment

compensation which would otherwise be payable to the

employee if such employee were unemployed;

‘‘(5) such employees meet the availability for work and

work search test requirements while collecting short-time com-

pensation benefits, by being available for their workweek as

required by the State agency;

‘‘(6) eligible employees may participate, as appropriate, in

training (including employer-sponsored training or worker

training funded under the Workforce Investment Act of 1998)

to enhance job skills if such program has been approved by

the State agency;

‘‘(7) the State agency shall require employers to certify

that if the employer provides health benefits and retirement

benefits under a defined benefit plan (as defined in section

414(j)) or contributions under a defined contribution plan (as

defined in section 414(i)) to any employee whose workweek

is reduced under the program that such benefits will continue

to be provided to employees participating in the short-time

compensation program under the same terms and conditions

as though the workweek of such employee had not been reduced

Certification.

Definition.

26 USC 1 note.

Layoff

Prevention Act

of 2012.

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126 STAT. 172 PUBLIC LAW 112–96—FEB. 22, 2012

or to the same extent as other employees not participating

in the short-time compensation program;

‘‘(8) the State agency shall require an employer to submit

a written plan describing the manner in which the requirements

of this subsection will be implemented (including a plan for

giving advance notice, where feasible, to an employee whose

workweek is to be reduced) together with an estimate of the

number of layoffs that would have occurred absent the ability

to participate in short-time compensation and such other

information as the Secretary of Labor determines is appro-

priate;

‘‘(9) the terms of the employer’s written plan and

implementation shall be consistent with employer obligations

under applicable Federal and State laws; and

‘‘(10) upon request by the State and approval by the Sec-

retary of Labor, only such other provisions are included in

the State law that are determined to be appropriate for pur-

poses of a short-time compensation program.’’.

(2) E

FFECTIVE DATE

.—Subject to paragraph (3), the amend-

ment made by paragraph (1) shall take effect on the date

of the enactment of this Act.

(3) T

RANSITION PERIOD FOR EXISTING PROGRAMS

.—In the

case of a State that is administering a short-time compensation

program as of the date of the enactment of this Act and the

State law cannot be administered consistent with the amend-

ment made by paragraph (1), such amendment shall take effect

on the earlier of—

(A) the date the State changes its State law in order

to be consistent with such amendment; or

(B) the date that is 2 years and 6 months after the

date of the enactment of this Act.

(b) C

ONFORMING

MENDMENTS

.—

(1) I

NTERNAL REVENUE CODE OF 1986

.—

(A) Subparagraph (E) of section 3304(a)(4) of the

Internal Revenue Code of 1986 is amended to read as

follows:

‘‘(E) amounts may be withdrawn for the payment of

short-time compensation under a short-time compensation

program (as defined under section 3306(v));’’.

(B) Subsection (f) of section 3306 of the Internal Rev-

enue Code of 1986 is amended—

(i) by striking paragraph (5) (relating to short-

time compensation) and inserting the following new

paragraph:

‘‘(5) amounts may be withdrawn for the payment of short-

time compensation under a short-time compensation program

(as defined in subsection (v)); and’’; and

(ii) by redesignating paragraph (5) (relating to self-

employment assistance program) as paragraph (6).

(2) S

OCIAL SECURITY ACT

.—Section 303(a)(5) of the Social

Security Act is amended by striking ‘‘the payment of short-

time compensation under a plan approved by the Secretary

of Labor’’ and inserting ‘‘the payment of short-time compensa-

tion under a short-time compensation program (as defined in

section 3306(v) of the Internal Revenue Code of 1986)’’.

(3) U

NEMPLOYMENT COMPENSATION AMENDMENTS OF 1992

.—

Subsections (b) through (d) of section 401 of the Unemployment

Repeal.

26 USC 3304

note.

42 USC 503.

26 USC 3304.

26 USC 3306

note.

26 USC 3306

note.

Plans.

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126 STAT. 173 PUBLIC LAW 112–96—FEB. 22, 2012

Compensation Amendments of 1992 (26 U.S.C. 3304 note) are

repealed.

SEC. 2162. TEMPORARY FINANCING OF SHORT-TIME COMPENSATION

PAYMENTS IN STATES WITH PROGRAMS IN LAW.

(a) P

AYMENTS TO

TATES

.—

(1) I

N GENERAL

.—Subject to paragraph (3), there shall be

paid to a State an amount equal to 100 percent of the amount

of short-time compensation paid under a short-time compensa-

tion program (as defined in section 3306(v) of the Internal

Revenue Code of 1986, as added by section 2161(a)) under

the provisions of the State law.

(2) T

ERMS OF PAYMENTS

.—Payments made to a State under

paragraph (1) shall be payable by way of reimbursement in

such amounts as the Secretary estimates the State will be

entitled to receive under this section for each calendar month,

reduced or increased, as the case may be, by any amount

by which the Secretary finds that the Secretary’s estimates

for any prior calendar month were greater or less than the

amounts which should have been paid to the State. Such esti-

mates may be made on the basis of such statistical, sampling,

or other method as may be agreed upon by the Secretary

and the State agency of the State involved.

(3) L

IMITATIONS ON PAYMENTS

.—

(A) G

ENERAL PAYMENT LIMITATIONS

.—No payments

shall be made to a State under this section for short-

time compensation paid to an individual by the State

during a benefit year in excess of 26 times the amount

of regular compensation (including dependents’ allowances)

under the State law payable to such individual for a week

of total unemployment.

(B) E

MPLOYER LIMITATIONS

.—No payments shall be

made to a State under this section for benefits paid to

an individual by the State under a short-time compensation

program if such individual is employed by the participating

employer on a seasonal, temporary, or intermittent basis.

(b) A

PPLICABILITY

.—

(1) I

N GENERAL

.—Payments to a State under subsection

(a) shall be available for weeks of unemployment—

(A) beginning on or after the date of the enactment

of this Act; and

(B) ending on or before the date that is 3 years and

6 months after the date of the enactment of this Act.

(2) T

HREE

YEAR FUNDING LIMITATION FOR COMBINED PAY

MENTS UNDER THIS SECTION AND SECTION 2163

.—States may

receive payments under this section and section 2163 with

respect to a total of not more than 156 weeks.

-Y

EAR

RANSITION

ERIOD FOR

XISTING

ROGRAMS

.—

During any period that the transition provision under section

2161(a)(3) is applicable to a State with respect to a short-time

compensation program, such State shall be eligible for payments

under this section. Subject to paragraphs (1)(B) and (2) of subsection

(b), if at any point after the date of the enactment of this Act

the State enacts a State law providing for the payment of short-

time compensation under a short-time compensation program that

meets the definition of such a program under section 3306(v) of

the Internal Revenue Code of 1986, as added by section 2161(a),

Termination

date.

Effective date.

26 USC 3304

note.

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126 STAT. 174 PUBLIC LAW 112–96—FEB. 22, 2012

the State shall be eligible for payments under this section after

the effective date of such enactment.

(d) F

UNDING AND

ERTIFICATIONS

.—

(1) F

UNDING

.—There are appropriated, out of moneys in

the Treasury not otherwise appropriated, such sums as may

be necessary for purposes of carrying out this section.

(2) C

ERTIFICATIONS

.—The Secretary shall from time to time

certify to the Secretary of the Treasury for payment to each

State the sums payable to such State under this section.

(e) D

EFINITIONS

.—In this section:

(1) S

ECRETARY

.—The term ‘‘Secretary’’ means the Secretary

of Labor.

(2) S

TATE

;

STATE AGENCY

;

STATE LAW

.—The terms ‘‘State’’,

‘‘State agency’’, and ‘‘State law’’ have the meanings given those

terms in section 205 of the Federal-State Extended Unemploy-

ment Compensation Act of 1970 (26 U.S.C. 3304 note).

SEC. 2163. TEMPORARY FINANCING OF SHORT-TIME COMPENSATION

AGREEMENTS.

(a) F

EDERAL

-S

TATE

GREEMENTS

.—

(1) I

N GENERAL

.—Any State which desires to do so may

enter into, and participate in, an agreement under this section

with the Secretary provided that such State’s law does not

provide for the payment of short-time compensation under a

short-time compensation program (as defined in section 3306(v)

of the Internal Revenue Code of 1986, as added by section

2161(a)).

(2) A

BILITY TO TERMINATE

.—Any State which is a party

to an agreement under this section may, upon providing 30

days’ written notice to the Secretary, terminate such agreement.

(b) P

ROVISIONS OF

EDERAL

-S

TATE

GREEMENT

.—

(1) I

N GENERAL

.—Any agreement under this section shall

provide that the State agency of the State will make payments

of short-time compensation under a plan approved by the State.

Such plan shall provide that payments are made in accordance

with the requirements under section 3306(v) of the Internal

Revenue Code of 1986, as added by section 2161(a).

(2) L

IMITATIONS ON PLANS

.—

(A) G

ENERAL PAYMENT LIMITATIONS

.—A short-time

compensation plan approved by a State shall not permit

the payment of short-time compensation to an individual

by the State during a benefit year in excess of 26 times

the amount of regular compensation (including dependents’

allowances) under the State law payable to such individual

for a week of total unemployment.

(B) E

MPLOYER LIMITATIONS

.—A short-time compensa-

tion plan approved by a State shall not provide payments

to an individual if such individual is employed by the

participating employer on a seasonal, temporary, or inter-

mittent basis.

(3) E

MPLOYER PAYMENT OF COSTS

.—Any short-time com-

pensation plan entered into by an employer must provide that

the employer will pay the State an amount equal to one-

half of the amount of short-time compensation paid under such

plan. Such amount shall be deposited in the State’s unemploy-

ment fund and shall not be used for purposes of calculating

Notice.

26 USC 3304

note.

Appropriation

authorization.

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126 STAT. 175 PUBLIC LAW 112–96—FEB. 22, 2012

an employer’s contribution rate under section 3303(a)(1) of the

Internal Revenue Code of 1986.

AYMENTS TO

TATES

.—

(1) I

N GENERAL

.—There shall be paid to each State with

an agreement under this section an amount equal to—

(A) one-half of the amount of short-time compensation

paid to individuals by the State pursuant to such agree-

ment; and

(B) any additional administrative expenses incurred

by the State by reason of such agreement (as determined

by the Secretary).

(2) T

ERMS OF PAYMENTS

.—Payments made to a State under

paragraph (1) shall be payable by way of reimbursement in

such amounts as the Secretary estimates the State will be

entitled to receive under this section for each calendar month,

reduced or increased, as the case may be, by any amount

by which the Secretary finds that the Secretary’s estimates

for any prior calendar month were greater or less than the

amounts which should have been paid to the State. Such esti-

mates may be made on the basis of such statistical, sampling,

or other method as may be agreed upon by the Secretary

and the State agency of the State involved.

(3) F

UNDING

.—There are appropriated, out of moneys in

the Treasury not otherwise appropriated, such sums as may

be necessary for purposes of carrying out this section.

(4) C

ERTIFICATIONS

.—The Secretary shall from time to time

certify to the Secretary of the Treasury for payment to each

State the sums payable to such State under this section.

(d) A

PPLICABILITY

.—

(1) I

N GENERAL

.—An agreement entered into under this

section shall apply to weeks of unemployment—

(A) beginning on or after the date on which such agree-

ment is entered into; and

(B) ending on or before the date that is 2 years and

13 weeks after the date of the enactment of this Act.

(2) T

YEAR FUNDING LIMITATION

.—States may receive

payments under this section with respect to a total of not

more than 104 weeks.

(e) S

PECIAL

ULE

.—If a State has entered into an agreement

under this section and subsequently enacts a State law providing

for the payment of short-time compensation under a short-time

compensation program that meets the definition of such a program

under section 3306(v) of the Internal Revenue Code of 1986, as

added by section 2161(a), the State—

(1) shall not be eligible for payments under this section

for weeks of unemployment beginning after the effective date

of such State law; and

(2) subject to paragraphs (1)(B) and (2) of section 2162(b),

shall be eligible to receive payments under section 2162 after

the effective date of such State law.

(f) D

EFINITIONS

.—In this section:

(1) S

ECRETARY

.—The term ‘‘Secretary’’ means the Secretary

of Labor.

(2) S

TATE

;

STATE AGENCY

;

STATE LAW

.—The terms ‘‘State’’,

‘‘State agency’’, and ‘‘State law’’ have the meanings given those

terms in section 205 of the Federal-State Extended Unemploy-

ment Compensation Act of 1970 (26 U.S.C. 3304 note).

Termination

date.

Effective date.

Appropriation

authorization.

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126 STAT. 176 PUBLIC LAW 112–96—FEB. 22, 2012

SEC. 2164. GRANTS FOR SHORT-TIME COMPENSATION PROGRAMS.

(a) G

RANTS

.—

(1) F

OR IMPLEMENTATION OR IMPROVED ADMINISTRATION

.—

The Secretary shall award grants to States that enact short-

time compensation programs (as defined in subsection (i)(2))

for the purpose of implementation or improved administration

of such programs.

(2) F

OR PROMOTION AND ENROLLMENT

.—The Secretary shall

award grants to States that are eligible and submit plans

for a grant under paragraph (1) for such States to promote

and enroll employers in short-time compensation programs (as

so defined).

(3) E

LIGIBILITY

.—

(A) I

N GENERAL

.—The Secretary shall determine eligi-

bility criteria for the grants under paragraphs (1) and

(2).

(B) C

LARIFICATION

.—A State administering a short-

time compensation program, including a program being

administered by a State that is participating in the transi-

tion under the provisions of sections 301(a)(3) and 302(c),

that does not meet the definition of a short-time compensa-

tion program under section 3306(v) of the Internal Revenue

Code of 1986 (as added by 211(a)), and a State with an

agreement under section 2163, shall not be eligible to

receive a grant under this section until such time as the

State law of the State provides for payments under a

short-time compensation program that meets such defini-

tion and such law.

(b) A

MOUNT OF

RANTS

.—

(1) I

N GENERAL

.—The maximum amount available for

making grants to a State under paragraphs (1) and (2) shall

be equal to the amount obtained by multiplying $100,000,000

(less the amount used by the Secretary under subsection (e))

by the same ratio as would apply under subsection (a)(2)(B)

of section 903 of the Social Security Act (42 U.S.C. 1103)

for purposes of determining such State’s share of any excess

amount (as described in subsection (a)(1) of such section) that

would have been subject to transfer to State accounts, as of

October 1, 2010, under the provisions of subsection (a) of such

section.

(2) A

MOUNT AVAILABLE FOR DIFFERENT GRANTS

.—Of the

maximum incentive payment determined under paragraph (1)

with respect to a State—

(A) one-third shall be available for a grant under sub-

section (a)(1); and

(B) two-thirds shall be available for a grant under

subsection (a)(2).

RANT

PPLICATION AND

ISBURSAL

.—

(1) A

PPLICATION

.—Any State seeking a grant under para-

graph (1) or (2) of subsection (a) shall submit an application

to the Secretary at such time, in such manner, and complete

with such information as the Secretary may require. In no

case may the Secretary award a grant under this section with

respect to an application that is submitted after December

31, 2014.

(2) N

OTICE

.—The Secretary shall, within 30 days after

receiving a complete application, notify the State agency of

Deadline.

26 USC 3304

note.

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126 STAT. 177 PUBLIC LAW 112–96—FEB. 22, 2012

the State of the Secretary’s findings with respect to the require-

ments for a grant under paragraph (1) or (2) (or both) of

subsection (a).

(3) C

ERTIFICATION

.—If the Secretary finds that the State

law provisions meet the requirements for a grant under sub-

section (a), the Secretary shall thereupon make a certification

to that effect to the Secretary of the Treasury, together with

a certification as to the amount of the grant payment to be

transferred to the State account in the Unemployment Trust

Fund (as established in section 904(a) of the Social Security

Act (42 U.S.C. 1104(a))) pursuant to that finding. The Secretary

of the Treasury shall make the appropriate transfer to the

State account within 7 days after receiving such certification.

(4) R

EQUIREMENT

.—No certification of compliance with the

requirements for a grant under paragraph (1) or (2) of sub-

section (a) may be made with respect to any State whose—

(A) State law is not otherwise eligible for certification

under section 303 of the Social Security Act (42 U.S.C.

503) or approvable under section 3304 of the Internal Rev-

enue Code of 1986; or

(B) short-time compensation program is subject to dis-

continuation or is not scheduled to take effect within 12

months of the certification.

(d) U

SE OF

UNDS

.—The amount of any grant awarded under

this section shall be used for the implementation of short-time

compensation programs and the overall administration of such pro-

grams and the promotion and enrollment efforts associated with

such programs, such as through—

(1) the creation or support of rapid response teams to

advise employers about alternatives to layoffs;

(2) the provision of education or assistance to employers

to enable them to assess the feasibility of participating in

short-time compensation programs; and

(3) the development or enhancement of systems to auto-

mate—

(A) the submission and approval of plans; and

(B) the filing and approval of new and ongoing short-

time compensation claims.

(e) A

DMINISTRATION

.—The Secretary is authorized to use 0.25

percent of the funds available under subsection (g) to provide for

outreach and to share best practices with respect to this section

and short-time compensation programs.

(f) R

ECOUPMENT

.—The Secretary shall establish a process under

which the Secretary shall recoup the amount of any grant awarded

under paragraph (1) or (2) of subsection (a) if the Secretary deter-

mines that, during the 5-year period beginning on the first date

that any such grant is awarded to the State, the State—

(1) terminated the State’s short-time compensation pro-

gram; or

(2) failed to meet appropriate requirements with respect

to such program (as established by the Secretary).

(g) F

UNDING

.—There are appropriated, out of moneys in the

Treasury not otherwise appropriated, to the Secretary, $100,000,000

to carry out this section, to remain available without fiscal year

limitation.

Appropriation

authorization.

Determination.

Time period.

Deadline.

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126 STAT. 178 PUBLIC LAW 112–96—FEB. 22, 2012

(h) R

EPORTING

.—The Secretary may establish reporting require-

ments for States receiving a grant under this section in order

to provide oversight of grant funds.

(i) D

EFINITIONS

.—In this section:

(1) S

ECRETARY

.—The term ‘‘Secretary’’ means the Secretary

of Labor.

(2) S

HORT

TIME COMPENSATION PROGRAM

.—The term ‘‘short-

time compensation program’’ has the meaning given such term

in section 3306(v) of the Internal Revenue Code of 1986, as

added by section 2161(a).

(3) S

TATE

;

STATE AGENCY

;

STATE LAW

.—The terms ‘‘State’’,

‘‘State agency’’, and ‘‘State law’’ have the meanings given those

terms in section 205 of the Federal-State Extended Unemploy-

ment Compensation Act of 1970 (26 U.S.C. 3304 note).

SEC. 2165. ASSISTANCE AND GUIDANCE IN IMPLEMENTING PROGRAMS.

(a) I

ENERAL

.—In order to assist States in establishing,

qualifying, and implementing short-time compensation programs

(as defined in section 3306(v) of the Internal Revenue Code of

1986, as added by section 2161(a)), the Secretary of Labor (in

this section referred to as the ‘‘Secretary’’) shall—

(1) develop model legislative language which may be used

by States in developing and enacting such programs and

periodically review and revise such model legislative language;

(2) provide technical assistance and guidance in developing,

enacting, and implementing such programs;

(3) establish reporting requirements for States, including

reporting on—

(A) the number of estimated averted layoffs;

(B) the number of participating employers and workers;

and

mines are appropriate.

(b) M

ODEL

ANGUAGE AND

UIDANCE

.—The model language

and guidance developed under subsection (a) shall allow sufficient

flexibility by States and participating employers while ensuring

accountability and program integrity.

ONSULTATION

.—In developing the model legislative lan-

guage and guidance under subsection (a), and in order to meet

the requirements of subsection (b), the Secretary shall consult with

employers, labor organizations, State workforce agencies, and other

program experts.

SEC. 2166. REPORTS.

(a) R

EPORT

.—

(1) I

N GENERAL

.—Not later than 4 years after the date

of the enactment of this Act, the Secretary of Labor shall

submit to Congress and to the President a report or reports

on the implementation of the provisions of this subtitle.

(2) R

EQUIREMENTS

.—Any report under paragraph (1) shall

at a minimum include the following:

(A) A description of best practices by States and

employers in the administration, promotion, and use of

short-time compensation programs (as defined in section

3306(v) of the Internal Revenue Code of 1986, as added

by section 2161(a)).

Requirements.

26 USC 3304

note.

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126 STAT. 179 PUBLIC LAW 112–96—FEB. 22, 2012

(B) An analysis of the significant challenges to State

enactment and implementation of short-time compensation

programs.

the level of interest in participating in short-time com-

pensation programs.

(b) F

UNDING

.—There are appropriated, out of any moneys in

the Treasury not otherwise appropriated, to the Secretary of Labor,

$1,500,000 to carry out this section, to remain available without

fiscal year limitation.

Subtitle E—Self-Employment Assistance

SEC. 2181. STATE ADMINISTRATION OF SELF-EMPLOYMENT ASSIST-

ANCE PROGRAMS.

(a) A

VAILABILITY FOR

NDIVIDUALS

ECEIVING

XTENDED

PENSATION

.—Title II of the Federal-State Extended Unemployment

Compensation Act of 1970 (26 U.S.C. 3304 note) is amended by

inserting at the end the following new section:

‘‘

AUTHORITY TO CONDUCT SELF

EMPLOYMENT ASSISTANCE PROGRAMS

‘‘S

. 208. (a)(1) At the option of a State, for any weeks of

unemployment beginning after the date of enactment of this section,

the State agency of the State may establish a self-employment

assistance program, as described in subsection (b), to provide for

the payment of extended compensation as self-employment assist-

ance allowances to individuals who would otherwise satisfy the

eligibility criteria under this title.

‘‘(2) Subject to paragraph (3), the self-employment assistance

allowance described in paragraph (1) shall be paid to an eligible

individual from such individual’s extended compensation account,

as described in section 202(b), and the amount in such account

shall be reduced accordingly.

‘‘(3)(A) Subject to subparagraph (B), for purposes of self-employ-

ment assistance programs established under this section and section

4001(j) of the Supplemental Appropriations Act, 2008, an individual

shall be provided with self-employment assistance allowances under

such programs for a total of not greater than 26 weeks (referred

to in this section as the ‘combined eligibility limit’).

‘‘(B) For purposes of an individual who is participating in

a self-employment assistance program established under this sec-

tion and has not reached the combined eligibility limit as of the

date on which such individual exhausts all rights to extended

compensation under this title, the individual shall be eligible to

receive self-employment assistance allowances under a self-employ-

ment assistance program established under section 4001(j) of the

Supplemental Appropriations Act, 2008, until such individual has

reached the combined eligibility limit, provided that the individual

otherwise satisfies the eligibility criteria described under title IV

of such Act.

‘‘(b) For the purposes of this section, the term ‘self-employment

assistance program’ means a program as defined under section

3306(t) of the Internal Revenue Code of 1986, except as follows:

‘‘(1) all references to ‘regular unemployment compensation

under the State law’ shall be deemed to refer instead to

Appropriation

authorization.

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126 STAT. 180 PUBLIC LAW 112–96—FEB. 22, 2012

‘extended compensation under title II of the Federal-State

Extended Unemployment Compensation Act of 1970’;

‘‘(2) paragraph (3)(B) shall not apply;

‘‘(3) clause (i) of paragraph (3)(C) shall be deemed to state

as follows:

‘‘ ‘(i) include any entrepreneurial training that the

State or non-profit organizations may provide in

coordination with programs of training offered by the

Small Business Administration, which may include

business counseling, mentorship for participants,

access to small business development resources, and

technical assistance; and’;

‘‘(4) the reference to ‘5 percent’ in paragraph (4) shall

be deemed to refer instead to ‘1 percent’; and

‘‘(5) paragraph (5) shall not apply.

‘‘(c) In the case of an individual who is eligible to receive

extended compensation under this title, such individual shall not

receive self-employment assistance allowances under this section

unless the State agency has a reasonable expectation that such

individual will be entitled to at least 13 times the individual’s

average weekly benefit amount of extended compensation and emer-

gency unemployment compensation.

‘‘(d)(1) An individual who is participating in a self-employment

assistance program established under this section may elect to

discontinue participation in such program at any time.

‘‘(2) For purposes of an individual whose participation in a

self-employment assistance program established under this section

is terminated pursuant to subsection (a)(3) or who has discontinued

participation in such program, if the individual continues to satisfy

the eligibility requirements for extended compensation under this

title, the individual shall receive extended compensation payments

with respect to subsequent weeks of unemployment, to the extent

that amounts remain in the account established for such individual

under section 202(b).’’.

(b) A

VAILABILITY FOR

NDIVIDUALS

ECEIVING

MERGENCY

NEMPLOYMENT

OMPENSATION

.—Section 4001 of the Supplemental

Appropriations Act, 2008 (Public Law 110–252; 26 U.S.C. 3304

note), as amended by sections 2141(b) and 2142(a), is further

amended by inserting at the end the following new subsection:

‘‘(j) A

UTHORITY TO

ONDUCT

ELF

EMPLOYMENT

SSISTANCE

ROGRAM

.—

‘‘(1) I

N GENERAL

.—

‘‘(A) E

STABLISHMENT

.—Any agreement under sub-

section (a) may provide that the State agency of the State

shall establish a self-employment assistance program, as

described in paragraph (2), to provide for the payment

of emergency unemployment compensation as self-employ-

ment assistance allowances to individuals who would other-

wise satisfy the eligibility criteria specified in subsection

(b).

‘‘(B) P

AYMENT OF ALLOWANCES

.—Subject to subpara-

graph (C), the self-employment assistance allowance

described in subparagraph (A) shall be paid to an eligible

individual from such individual’s emergency unemployment

compensation account, as described in section 4002, and

the amount in such account shall be reduced accordingly.

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126 STAT. 181 PUBLIC LAW 112–96—FEB. 22, 2012

‘‘(C) L

IMITATION ON SELF

EMPLOYMENT ASSISTANCE FOR

INDIVIDUALS RECEIVING EXTENDED COMPENSATION AND

EMERGENCY UNEMPLOYMENT COMPENSATION

.—

‘‘(i) C

OMBINED ELIGIBILITY LIMIT

.—Subject to

clause (ii), for purposes of self-employment assistance

programs established under this subsection and section

208 of the Federal-State Extended Unemployment

Compensation Act of 1970, an individual shall be pro-

vided with self-employment assistance allowances

under such programs for a total of not greater than

26 weeks (referred to in this subsection as the ‘com-

bined eligibility limit’).

‘‘(ii) C

ARRYOVER RULE

.—For purposes of an indi-

vidual who is participating in a self-employment assist-

ance program established under this subsection and

has not reached the combined eligibility limit as of

the date on which such individual exhausts all rights

to extended compensation under this title, the indi-

vidual shall be eligible to receive self-employment

assistance allowances under a self-employment assist-

ance program established under section 208 of the

Federal-State Extended Unemployment Compensation

Act of 1970 until such individual has reached the com-

bined eligibility limit, provided that the individual

otherwise satisfies the eligibility criteria described

under title II of such Act.

‘‘(2) D

EFINITION OF

‘

SELF

EMPLOYMENT ASSISTANCE PRO

GRAM

’.—For the purposes of this section, the term ‘self-employ-

ment assistance program’ means a program as defined under

section 3306(t) of the Internal Revenue Code of 1986, except

as follows:

‘‘(A) all references to ‘regular unemployment compensa-

tion under the State law’ shall be deemed to refer instead

to ‘emergency unemployment compensation under title IV

of the Supplemental Appropriations Act, 2008’;

‘‘(B) paragraph (3)(B) shall not apply;

‘‘(C) clause (i) of paragraph (3)(C) shall be deemed

to state as follows:

‘‘ ‘(i) include any entrepreneurial training that the

State or non-profit organizations may provide in

coordination with programs of training offered by the

Small Business Administration, which may include

business counseling, mentorship for participants,

access to small business development resources, and

technical assistance; and’;

‘‘(D) the reference to ‘5 percent’ in paragraph (4) shall

be deemed to refer instead to ‘1 percent’; and

‘‘(E) paragraph (5) shall not apply.

‘‘(3) A

VAILABILITY OF SELF

EMPLOYMENT ASSISTANCE ALLOW

ANCES

.—In the case of an individual who is eligible to receive

emergency unemployment compensation payment under this

title, such individual shall not receive self-employment assist-

ance allowances under this subsection unless the State agency

has a reasonable expectation that such individual will be enti-

tled to at least 13 times the individual’s average weekly benefit

amount of extended compensation and emergency unemploy-

ment compensation.

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126 STAT. 182 PUBLIC LAW 112–96—FEB. 22, 2012

‘‘(4) P

ARTICIPANT OPTION TO TERMINATE PARTICIPATION IN

SELF

EMPLOYMENT ASSISTANCE PROGRAM

.—

‘‘(A) T

ERMINATION

.—An individual who is participating

in a self-employment assistance program established under

this subsection may elect to discontinue participation in

such program at any time.

‘‘(B) C

ONTINUED ELIGIBILITY FOR EMERGENCY

UNEMPLOYMENT COMPENSATION

.—For purposes of an indi-

vidual whose participation in the self-employment assist-

ance program established under this subsection is termi-

nated pursuant to paragraph (1)(C) or who has discontinued

participation in such program, if the individual continues

to satisfy the eligibility requirements for emergency

unemployment compensation under this title, the indi-

vidual shall receive emergency unemployment compensa-

tion payments with respect to subsequent weeks of

unemployment, to the extent that amounts remain in the

account established for such individual under section

4002(b) or to the extent that such individual commences

receiving the amounts described in subsections (c), (d),

or (e) of such section, respectively.’’.

SEC. 2182. GRANTS FOR SELF-EMPLOYMENT ASSISTANCE PROGRAMS.

(a) I

ENERAL

.—

(1) E

STABLISHMENT OR IMPROVED ADMINISTRATION

.—Sub-

ject to the requirements established under subsection (b), the

Secretary shall award grants to States for the purposes of—

(A) improved administration of self-employment assist-

ance programs that have been established, prior to the

date of the enactment of this Act, pursuant to section

3306(t) of the Internal Revenue Code of 1986 (26 U.S.C.

3306(t)), for individuals who are eligible to receive regular

unemployment compensation;

(B) development, implementation, and administration

of self-employment assistance programs that are estab-

lished, subsequent to the date of the enactment of this

Act, pursuant to section 3306(t) of the Internal Revenue

Code of 1986, for individuals who are eligible to receive

regular unemployment compensation; and

of self-employment assistance programs that are estab-

lished pursuant to section 208 of the Federal-State

Extended Unemployment Compensation Act of 1970 or sec-

tion 4001(j) of the Supplemental Appropriations Act, 2008,

for individuals who are eligible to receive extended com-

pensation or emergency unemployment compensation.

(2) P

ROMOTION AND ENROLLMENT

.—Subject to the require-

ments established under subsection (b), the Secretary shall

award additional grants to States that submit approved applica-

tions for a grant under paragraph (1) for such States to promote

self-employment assistance programs and enroll unemployed

individuals in such programs.

(b) A

PPLICATION AND

ISBURSAL

.—

(1) A

PPLICATION

.—Any State seeking a grant under para-

graph (1) or (2) of subsection (a) shall submit an application

to the Secretary at such time, in such manner, and containing

such information as is determined appropriate by the Secretary.

26 USC 3304

note.

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126 STAT. 183 PUBLIC LAW 112–96—FEB. 22, 2012

In no case shall the Secretary award a grant under this section

with respect to an application that is submitted after December

31, 2013.

(2) N

OTICE

.—Not later than 30 days after receiving an

application described in paragraph (1) from a State, the Sec-

retary shall notify the State agency as to whether a grant

has been approved for such State for the purposes described

in subsection (a).

(3) C

ERTIFICATION

.—If the Secretary determines that a

State has met the requirements for a grant under subsection

(a), the Secretary shall make a certification to that effect to

the Secretary of the Treasury, as well as a certification as

to the amount of the grant payment to be transferred to the

State account in the Unemployment Trust Fund under section

904 of the Social Security Act (42 U.S.C. 1104). The Secretary

of the Treasury shall make the appropriate transfer to the

State account not later than 7 days after receiving such certifi-

cation.

LLOTMENT

ACTORS

.—For purposes of allotting the funds

available under subsection (d) to States that have met the require-

ments for a grant under this section, the amount of the grant

provided to each State shall be determined based upon the percent-

age of unemployed individuals in the State relative to the percent-

age of unemployed individuals in all States.

(d) F

UNDING

.—There are appropriated, out of moneys in the

Treasury not otherwise appropriated, $35,000,000 for the period

of fiscal year 2012 through fiscal year 2013 for purposes of carrying

out the grant program under this section,

SEC. 2183. ASSISTANCE AND GUIDANCE IN IMPLEMENTING SELF-

EMPLOYMENT ASSISTANCE PROGRAMS.

(a) M

ODEL

ANGUAGE AND

UIDANCE

.—For purposes of

assisting States in establishing, improving, and administering self-

employment assistance programs, the Secretary shall—

(1) develop model language that may be used by States

in enacting such programs, as well as periodically review and

revise such model language; and

(2) provide technical assistance and guidance in estab-

lishing, improving, and administering such programs.

(b) R

EPORTING AND

VALUATION

.—

(1) R

EPORTING

.—The Secretary shall establish reporting

requirements for States that have established self-employment

assistance programs, which shall include reporting on—

(A) the total number of individuals who received

unemployment compensation and—

(i) were referred to a self-employment assistance

program;

(ii) participated in such program; and

(iii) received an allowance under such program;

(B) the total amount of allowances provided to individ-

uals participating in a self-employment assistance program;

appropriate method) for businesses that have been estab-

lished by individuals participating in a self-employment

assistance program, as well as the total number of individ-

uals employed through such businesses; and

Review.

26 USC 3304

note.

Appropriation

authorization.

Determination.

Transfer

authority.

Deadline.

Determination.

Deadline.

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126 STAT. 184 PUBLIC LAW 112–96—FEB. 22, 2012

(D) any additional information, as determined appro-

priate by the Secretary.

(2) E

VALUATION

.—Not later than 5 years after the date

of the enactment of this Act, the Secretary shall submit to

Congress a report that evaluates the effectiveness of self-

employment assistance programs established by States,

including—

(A) an analysis of the implementation and operation

of self-employment assistance programs by States;

(B) an evaluation of the economic outcomes for individ-

uals who participated in a self-employment assistance pro-

gram as compared to individuals who received unemploy-

ment compensation and did not participate in a self-employ-

ment assistance program, including a comparison as to

employment status, income, and duration of receipt of

unemployment compensation or self-employment assistance

allowances; and

by individuals who participated in a self-employment

assistance program, including information regarding—

(i) the type of businesses established;

(ii) the sustainability of the businesses;

(iii) the total income collected by the businesses;

(iv) the total number of individuals employed

through such businesses; and

(v) the estimated Federal and State tax revenue

collected from such businesses and their employees.

LEXIBILITY AND

CCOUNTABILITY

.—The model language,

guidance, and reporting requirements developed by the Secretary

under subsections (a) and (b) shall—

(1) allow sufficient flexibility for States and participating

individuals; and

(2) ensure accountability and program integrity.

(d) C

ONSULTATION

.—For purposes of developing the model lan-

guage, guidance, and reporting requirements described under sub-

sections (a) and (b), the Secretary shall consult with employers,

labor organizations, State agencies, and other relevant program

experts.

(e) E

NTREPRENEURIAL

RAINING

ROGRAMS

.—The Secretary

shall utilize resources available through the Department of Labor

and coordinate with the Administrator of the Small Business

Administration to ensure that adequate funding is reserved and

made available for the provision of entrepreneurial training to

individuals participating in self-employment assistance programs.

(f) S

ELF

EMPLOYMENT

SSISTANCE

ROGRAM

.—For purposes of

this section, the term ‘‘self-employment assistance program’’ means

a program established pursuant to section 3306(t) of the Internal

Revenue Code of 1986 (26 U.S.C. 3306(t)), section 208 of the Federal-

State Extended Unemployment Compensation Act of 1970, or sec-

tion 4001(j) of the Supplemental Appropriations Act, 2008, for

individuals who are eligible to receive regular unemployment com-

pensation, extended compensation, or emergency unemployment

compensation.

SEC. 2184. DEFINITIONS.

In this subtitle:

26 USC 3304

note.

Definition.

Deadline.

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126 STAT. 185 PUBLIC LAW 112–96—FEB. 22, 2012

(1) S

ECRETARY

.—The term ‘‘Secretary’’ means the Secretary

of Labor.

(2) S

TATE

;

STATE AGENCY

.—The terms ‘‘State’’ and ‘‘State

agency’’ have the meanings given such terms under section

205 of the Federal-State Extended Unemployment Compensa-

tion Act of 1970 (26 U.S.C. 3304 note).

TITLE III—MEDICARE AND OTHER

HEALTH PROVISIONS

Subtitle A—Medicare Extensions

SEC. 3001. EXTENSION OF MMA SECTION 508 RECLASSIFICATIONS.

(a) I

ENERAL

.—Section 106(a) of division B of the Tax Relief

and Health Care Act of 2006 (42 U.S.C. 1395 note), as amended

by section 117 of the Medicare, Medicaid, and SCHIP Extension

Act of 2007 (Public Law 110–173), section 124 of the Medicare

Improvements for Patients and Providers Act of 2008 (Public Law

110–275), sections 3137(a) and 10317 of the Patient Protection

and Affordable Care Act (Public Law 111–148), section 102(a) of

the Medicare and Medicaid Extenders Act of 2010 (Public Law

111–309), and section 302(a) of the Temporary Payroll Tax Cut

Continuation Act of 2011 (Public Law 112–78), is amended by

striking ‘‘November 30, 2011’’ and inserting ‘‘March 31, 2012’’.

(b) S

PECIAL

ULE

.—

(1) I

N GENERAL

.—Subject to paragraph (2), for purposes

of implementation of the amendment made by subsection (a),

including for purposes of the implementation of paragraph (2)

of section 117(a) of the Medicare, Medicaid, and SCHIP Exten-

sion Act of 2007 (Public Law 110–173), for the period beginning

on December 1, 2011, and ending on March 31, 2012, the

Secretary of Health and Human Services shall use the hospital

wage index that was promulgated by the Secretary of Health

and Human Services in the Federal Register on August 18,

2011 (76 Fed. Reg. 51476), and any subsequent corrections.

(2) E

XCEPTION

.—In determining the wage index applicable

to hospitals that qualify for wage index reclassification, the

Secretary shall, for the period described in paragraph (1),

include the average hourly wage data of hospitals whose

reclassification was extended pursuant to the amendment made

by subsection (a) only if including such data results in a higher

applicable reclassified wage index. Any revision to hospital

wage indexes made as a result of this paragraph shall not

be effected in a budget neutral manner.

IMEFRAME FOR

AYMENTS

.—

(1) I

N GENERAL

.—The Secretary shall make payments

required under subsections (a) and (b) by not later than June

30, 2012.

(2) O

CTOBER 2011 AND NOVEMBER 2011 CONFORMING

CHANGE

.—Section 302(c) of the Temporary Payroll Tax Cut

Continuation Act of 2011 (Public Law 112-78) is amended by

striking ‘‘December 31, 2012’’ and inserting ‘‘June 30, 2012’’.

42 USC 1395ww

note.

42 USC 1395ww

note.

42 USC 1395ww

note.

Time period.

42 USC 1395ww

note.

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126 STAT. 186 PUBLIC LAW 112–96—FEB. 22, 2012

SEC. 3002. EXTENSION OF OUTPATIENT HOLD HARMLESS PAYMENTS.

(a) I

ENERAL

.—Section 1833(t)(7)(D)(i) of the Social Security

Act (42 U.S.C. 1395l(t)(7)(D)(i)), as amended by section 308 of

the Temporary Payroll Tax Cut Continuation Act of 2011 (Public

Law 112–78), is amended—

(1) in subclause (II)—

(A) in the first sentence, by striking ‘‘March 1, 2012’’

and inserting ‘‘January 1, 2013’’; and

(B) in the second sentence, by striking ‘‘or the first

two months of 2012’’ and inserting ‘‘or 2012’’; and

(2) in subclause (III), in the first sentence, by striking

‘‘March 1, 2012’’ and inserting ‘‘January 1, 2013’’.

(b) R

EPORT

.—Not later than July 1, 2012, the Secretary of

Health and Human Services shall submit to the Committees on

Ways and Means and Energy and Commerce of the House of Rep-

resentatives and the Committee on Finance of the Senate a report

including recommendations for which types of hospitals should con-

tinue to receive hold harmless payments described in subclauses

(II) and (III) of section 1833(t)(7)(D)(i) of the Social Security Act

(42 U.S.C. 1395l(t)(7)(D)(i)) in order to maintain adequate bene-

ficiary access to outpatient services. In conducting such report,

the Secretary should examine why some similarly situated hospitals

do not receive such hold harmless payments and are able to rely

only on the prospective payment system for hospital outpatient

department services under section 1833(t) of the Social Security

Act (42 U.S.C. 1395l(t)).

SEC. 3003. PHYSICIAN PAYMENT UPDATE.

(a) I

ENERAL

.—Section 1848(d)(13) of the Social Security

Act (42 U.S.C. 1395w–4(d)(13)), as added by section 301 of the

Temporary Payroll Tax Cut Continuation Act of 2011 (Public Law

112–78), is amended—

(1) in the heading, by striking ‘‘

FIRST TWO MONTHS OF

2012

’’ and inserting ‘‘

2012

’’;

(2) in subparagraph (A), by striking ‘‘the period beginning

on January 1, 2012, and ending on February 29, 2012’’ and

inserting ‘‘2012’’;

(3) in the heading of subparagraph (B), by striking

‘‘

REMAINING PORTION OF 2012

’’ and inserting ‘‘

2013

’’; and

(4) in subparagraph (B), by striking ‘‘for the period begin-

ning on March 1, 2012, and ending on December 31, 2012,

and for 2013’’ and inserting ‘‘for 2013’’.

(b) M

ANDATED

TUDIES ON

HYSICIAN

AYMENT

EFORM

.—

(1) S

TUDY BY SECRETARY ON OPTIONS FOR BUNDLED OR

EPISODE

BASED PAYMENT

.—

(A) I

N GENERAL

.—The Secretary of Health and Human

Services shall conduct a study that examines options for

bundled or episode-based payments, to cover physicians’

services currently paid under the physician fee schedule

under section 1848 of the Social Security Act (42 U.S.C.

1395w–4), for one or more prevalent chronic conditions

(such as cancer, diabetes, and congestive heart failure)

or episodes of care for one or more major procedures (such

as medical device implantation). In conducting the study,

the Secretary shall consult with medical professional soci-

eties and other relevant stakeholders. The study shall

Consultation.

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126 STAT. 187 PUBLIC LAW 112–96—FEB. 22, 2012

include an examination of related private payer payment

initiatives.

(B) R

EPORT

.—Not later than January 1, 2013, the Sec-

retary shall submit to the Committees on Ways and Means

and Energy and Commerce of the House of Representatives

and the Committee on Finance of the Senate a report

on the study conducted under this paragraph. The Sec-

retary shall include in the report recommendations on suit-

able alternative payment options for services paid under

such fee schedule and on associated implementation

requirements (such as timelines, operational issues, and

interactions with other payment reform initiatives).

(2) GAO

STUDY OF PRIVATE PAYER INITIATIVES

.—

(A) I

N GENERAL

.—The Comptroller General of the

United States shall conduct a study that examines initia-

tives of private entities offering or administering health

insurance coverage, group health plans, or other private

health benefit plans to base or adjust physician payment

rates under such coverage or plans for performance on

quality and efficiency, as well as demonstration of care

delivery improvement activities (such as adherence to evi-

dence-based guidelines and patient-shared decision making

programs). In conducting such study, the Comptroller Gen-

eral shall consult, to the extent appropriate, with medical

professional societies and other relevant stakeholders.

(B) R

EPORT

.—Not later than January 1, 2013, the

Comptroller General shall submit to the Committees on

Ways and Means and Energy and Commerce of the House

of Representatives and the Committee on Finance of the

Senate a report on the study conducted under this para-

graph. Such report shall include an assessment of the

applicability of the payer initiatives described in subpara-

graph (A) to the Medicare program and recommendations

on modifications to existing Medicare performance-based

initiatives.

SEC. 3004. WORK GEOGRAPHIC ADJUSTMENT.

(a) I

ENERAL

.—Section 1848(e)(1)(E) of the Social Security

Act (42 U.S.C. 1395w–4(e)(1)(E)), as amended by section 303 of

the Temporary Payroll Tax Cut Continuation Act of 2011 (Public

Law 112–78), is amended by striking ‘‘before March 1, 2012’’ and

inserting ‘‘before January 1, 2013’’.

(b) R

EPORT

.—Not later than June 15, 2013, the Medicare Pay-

ment Advisory Commission shall submit to the Committees on

Ways and Means and Energy and Commerce of the House of Rep-

resentatives and the Committee on Finance of the Senate a report

that assesses whether any adjustment under section 1848 of the

Social Security Act (42 U.S.C. 1395w–4) to distinguish the difference

in work effort by geographic area is appropriate and, if so, what

that level should be and where it should be applied. The report

shall also assess the impact of the work geographic adjustment

under such section, including the extent to which the floor on

such adjustment impacts access to care.

SEC. 3005. PAYMENT FOR OUTPATIENT THERAPY SERVICES.

(a) A

PPLICATION OF

DDITIONAL

EQUIREMENTS

.—Section

1833(g)(5) of the Social Security Act (42 U.S.C. 1395l(g)(5)), as

Consultation.

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126 STAT. 188 PUBLIC LAW 112–96—FEB. 22, 2012

amended by section 304 of the Temporary Payroll Tax Cut Continu-

ation Act of 2011 (Public Law 112–78), is amended—

(1) by inserting ‘‘(A)’’ after ‘‘(5)’’;

(2) in the first sentence, by striking ‘‘February 29, 2012’’

and inserting ‘‘December 31, 2012’’;

(3) in the first sentence, by inserting ‘‘and if the require-

ment of subparagraph (B) is met’’ after ‘‘medically necessary’’;

(4) in the second sentence, by inserting ‘‘made in accordance

with such requirement’’ after ‘‘receipt of the request’’; and

(5) by adding at the end the following new subparagraphs:

‘‘(B) In the case of outpatient therapy services for which an

exception is requested under the first sentence of subparagraph

(A), the claim for such services shall contain an appropriate modifier

(such as the KX modifier used as of the date of the enactment

of this subparagraph) indicating that such services are medically

necessary as justified by appropriate documentation in the medical

record involved.

‘‘(C)(i) In applying this paragraph with respect to a request

for an exception with respect to expenses that would be incurred

for outpatient therapy services (including services described in sub-

section (a)(8)(B)) that would exceed the threshold described in clause

(ii) for a year, the request for such an exception, for services

furnished on or after October 1, 2012, shall be subject to a manual

medical review process that is similar to the manual medical review

process used for certain exceptions under this paragraph in 2006.

‘‘(ii) The threshold under this clause for a year is $3,700.

Such threshold shall be applied separately—

‘‘(I) for physical therapy services and speech-language

pathology services; and

‘‘(II) for occupational therapy services.’’.

(b) T

EMPORARY

PPLICATION OF

HERAPY

AP TO

HERAPY

NISHED AS

ART OF

OSPITAL

UTPATIENT

ERVICES

.—Section

1833(g) of such Act (42 U.S.C. 1395l(g)) is amended—

(1) in each of paragraphs (1) and (3), by striking ‘‘but

not described in section 1833(a)(8)(B)’’ and inserting ‘‘but

(except as provided in paragraph (6)) not described in subsection

(a)(8)(B)’’; and

(2) by adding at the end the following new paragraph:

‘‘(6) In applying paragraphs (1) and (3) to services furnished

during the period beginning not later than October 1, 2012, and

ending on December 31, 2012, the exclusion of services described

in subsection (a)(8)(B) from the uniform dollar limitation specified

in paragraph (2) shall not apply to such services furnished during

2012.’’.

EQUIREMENT FOR

NCLUSION ON

LAIMS OF

NPI

HYSI

CIAN

EVIEWS

HERAPY

LAN

.—Section 1842(t) of such Act

(42 U.S.C. 1395u(t)) is amended—

(1) by inserting ‘‘(1)’’ after ‘‘(t)’’; and

(2) by adding at the end the following new paragraph:

‘‘(2) Each request for payment, or bill submitted, for therapy

services described in paragraph (1) or (3) of section 1833(g),

including services described in section 1833(a)(8)(B), furnished on

or after October 1, 2012, for which payment may be made under

this part shall include the national provider identifier of the physi-

cian who periodically reviews the plan for such services under

section 1861(p)(2).’’.

Time period.

Applicability.

Time period.

Applicability.

Time period.

Review.

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126 STAT. 189 PUBLIC LAW 112–96—FEB. 22, 2012

(d) I

MPLEMENTATION

.—The Secretary of Health and Human

Services shall implement such claims processing edits and issue

such guidance as may be necessary to implement the amendments

made by this section in a timely manner. Notwithstanding any

other provision of law, the Secretary may implement the amend-

ments made by this section by program instruction. Of the amount

of funds made available to the Secretary for fiscal year 2012 for

program management for the Centers for Medicare & Medicaid

Services, not to exceed $9,375,000 shall be available for such fiscal

year and the first 3 months of fiscal year 2013 to carry out section

1833(g)(5)(C) of the Social Security Act (relating to manual medical

review), as added by subsection (a).

(e) E

FFECTIVE

ATE

.—The requirement of subparagraph (B)

of section 1833(g)(5) of the Social Security Act (42 U.S.C.

1395l(g)(5)), as added by subsection (a), shall apply to services

furnished on or after March 1, 2012.

(f) M

PAC R

EPORT ON

MPROVED

EDICARE

HERAPY

ENE

FITS

.—Not later than June 15, 2013, the Medicare Payment

Advisory Commission shall submit to the Committees on Energy

and Commerce and Ways and Means of the House of Representa-

tives and to the Committee on Finance of the Senate a report

making recommendations on how to improve the outpatient therapy

benefit under part B of title XVIII of the Social Security Act.

The report shall include recommendations on how to reform the

payment system for such outpatient therapy services under such

part so that the benefit is better designed to reflect individual

acuity, condition, and therapy needs of the patient. Such report

shall include an examination of private sector initiatives relating

to outpatient therapy benefits.

(g) C

OLLECTION OF

DDITIONAL

ATA

.—

(1) S

TRATEGY

.—The Secretary of Health and Human Serv-

ices shall implement, beginning on January 1, 2013, a claims-

based data collection strategy that is designed to assist in

reforming the Medicare payment system for outpatient therapy

services subject to the limitations of section 1833(g) of the

Social Security Act (42 U.S.C. 1395l(g)). Such strategy shall

be designed to provide for the collection of data on patient

function during the course of therapy services in order to better

understand patient condition and outcomes.

(2) C

ONSULTATION

.—In proposing and implementing such

strategy, the Secretary shall consult with relevant stakeholders.

(h) GAO R

EPORT ON

ANUAL

EDICAL

EVIEW

ROCESS

MPLEMENTATION

.—Not later than May 1, 2013, the Comptroller

General of the United States shall submit to the Committees on

Energy and Commerce and Ways and Means of the House of Rep-

resentatives and to the Committee on Finance of the Senate a

report on the implementation of the manual medical review process

referred to in section 1833(g)(5)(C) of the Social Security Act, as

added by subsection (a). Such report shall include aggregate data

on the number of individuals and claims subject to such process,

the number of reviews conducted under such process, and the

outcome of such reviews.

SEC. 3006. PAYMENT FOR TECHNICAL COMPONENT OF CERTAIN PHYSI-

CIAN PATHOLOGY SERVICES.

Section 542(c) of the Medicare, Medicaid, and SCHIP Benefits

Improvement and Protection Act of 2000 (as enacted into law by

42 USC 1395l

note.

Effective date.

Deadline.

42 USC 1395l

note.

42 USC 1395l

note.

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126 STAT. 190 PUBLIC LAW 112–96—FEB. 22, 2012

section 1(a)(6) of Public Law 106–554), as amended by section

732 of the Medicare Prescription Drug, Improvement, and Mod-

ernization Act of 2003 (42 U.S.C. 1395w–4 note), section 104 of

division B of the Tax Relief and Health Care Act of 2006 (42

U.S.C. 1395w–4 note), section 104 of the Medicare, Medicaid, and

SCHIP Extension Act of 2007 (Public Law 110–173), section 136

of the Medicare Improvements for Patients and Providers Act of

2008 (Public Law 110–275), section 3104 of the Patient Protection

and Affordable Care Act (Public Law 111–148), section 105 of the

Medicare and Medicaid Extenders Act of 2010 (Public Law 111–

309), and section 305 of the Temporary Payroll Tax Cut Continu-

ation Act of 2011 (Public Law 112–78), is amended by striking

‘‘and the first two months of 2012’’ and inserting ‘‘and the first

six months of 2012’’.

SEC. 3007. AMBULANCE ADD-ON PAYMENTS.

(a) G

ROUND

MBULANCE

.—Section 1834(l)(13)(A) of the Social

Security Act (42 U.S.C. 1395m(l)(13)(A)), as amended by section

306(a) of the Temporary Payroll Tax Cut Continuation Act of 2011

(Public Law 112–78), is amended—

(1) in the matter preceding clause (i), by striking ‘‘March

1, 2012’’ and inserting ‘‘January 1, 2013’’; and

(2) in each of clauses (i) and (ii), by striking ‘‘March 1,

2012’’ and inserting ‘‘January 1, 2013’’ each place it appears.

(b) A

MBULANCE

.—Section 146(b)(1) of the Medicare

Improvements for Patients and Providers Act of 2008 (Public Law

110–275), as amended by sections 3105(b) and 10311(b) of the

Patient Protection and Affordable Care Act (Public Law 111–148),

section 106(b) of the Medicare and Medicaid Extenders Act of 2010

(Public Law 111–309) and section 306(b) of the Temporary Payroll

Tax Cut Continuation Act of 2011 (Public Law 112–78), is amended

by striking ‘‘February 29, 2012’’ and inserting ‘‘December 31, 2012’’.

UPER

URAL

MBULANCE

.—Section 1834(l)(12)(A) of the

Social Security Act (42 U.S.C. 1395m(l)(12)(A)), as amended by

section 306(c) of Temporary Payroll Tax Cut Continuation Act of

2011 (Public Law 112–78), is amended in the first sentence by

striking ‘‘March 1, 2012’’ and inserting ‘‘January 1, 2013’’.

(d) GAO R

EPORT

PDATE

.—Not later than October 1, 2012,

the Comptroller General of the United States shall update the

GAO report GAO–07–383 (relating to Ambulance Providers: Costs

and Expected Medicare Margins Vary Greatly) to reflect current

costs for ambulance providers.

(e) M

PAC R

EPORT

.—The Medicare Payment Advisory

Commission shall conduct a study of—

(1) the appropriateness of the add-on payments for ambu-

lance providers under paragraphs (12)(A) and (13)(A) of section

1834(l) of the Social Security Act (42 U.S.C. 1395m(l)) and

the treatment of air ambulance providers under section

146(b)(1) of the Medicare Improvements for Patients and Pro-

viders Act of 2008 (Public Law 110–275);

(2) the effect these add-on payments and such treatment

have on the Medicare margins of ambulance providers; and

(3) whether there is a need to reform the Medicare ambu-

lance fee schedule under such section and, if so, what should

such reforms be, including whether the add-on payments should

be included in the base rate.

Study.

42 USC 1395m

note.

42 USC 1395w–4

note.

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126 STAT. 191 PUBLIC LAW 112–96—FEB. 22, 2012

Not later than June 15, 2013, the Commission shall submit to

the Committees on Ways and Means and Energy and Commerce

of the House of Representatives and the Committee on Finance

of the Senate a report on such study and shall include in the

report such recommendations as the Commission deems appro-

priate.

Subtitle B—Other Health Provisions

SEC. 3101. QUALIFYING INDIVIDUAL PROGRAM.

(a) E

XTENSION

.—Section 1902(a)(10)(E)(iv) of the Social Security

Act (42 U.S.C. 1396a(a)(10)(E)(iv)), as amended by section 310(a)

of the Temporary Payroll Tax Cut Continuation Act of 2011 (Public

Law 112–78), is amended by striking ‘‘February’’ and inserting

‘‘December’’.

(b) E

XTENDING

OTAL

MOUNT

VAILABLE FOR

LLOCATION

.—

Section 1933(g) of such Act (42 U.S.C. 1396u–3(g)), as amended

by section 310(b) of the Temporary Payroll Tax Cut Continuation

Act of 2011 (Public Law 112–78), is amended—

(1) in paragraph (2)—

(A) in subparagraph (P), by striking ‘‘and’’ after the

semicolon;

(B) in subparagraph (Q), by striking ‘‘February 29,

2012, the total allocation amount is $150,000,000.’’ and

inserting ‘‘September 30, 2012, the total allocation amount

is $450,000,000; and’’; and

graph:

‘‘(R) for the period that begins on October 1, 2012,

and ends on December 31, 2012, the total allocation amount

is $280,000,000.’’; and

(2) in paragraph (3), in the matter preceding subparagraph

(A), by striking ‘‘or (P)’’ and inserting ‘‘(P), or (R)’’.

SEC. 3102. TRANSITIONAL MEDICAL ASSISTANCE.

Sections 1902(e)(1)(B) and 1925(f) of the Social Security Act

(42 U.S.C. 1396a(e)(1)(B), 1396r–6(f)), as amended by section 311

of the Temporary Payroll Tax Cut Continuation Act of 2011 (Public

Law 112–78), are each amended by striking ‘‘February 29’’ and

inserting ‘‘December 31’’.

Subtitle C—Health Offsets

SEC. 3201. REDUCTION OF BAD DEBT TREATED AS AN ALLOWABLE

COST.

(a) H

OSPITALS

.—Section 1861(v)(1)(T) of the Social Security Act

(42 U.S.C. 1395x(v)(1)(T)) is amended—

(1) in clause (iii), by striking ‘‘and’’ at the end;

(2) in clause (iv)—

(A) by striking ‘‘a subsequent fiscal year’’ and inserting

‘‘fiscal years 2001 through 2012’’; and

(B) by striking the period at the end and inserting

‘‘, and’’; and

(3) by adding at the end the following:

Time period.

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126 STAT. 192 PUBLIC LAW 112–96—FEB. 22, 2012

‘‘(v) for cost reporting periods beginning during fiscal year

2013 or a subsequent fiscal year, by 35 percent of such amount

otherwise allowable.’’.

(b) S

KILLED

URSING

ACILITIES

.—Section 1861(v)(1)(V) of such

Act (42 U.S.C. 1395x(v)(1)(V)) is amended—

(1) in the matter preceding clause (i), by striking ‘‘with

respect to cost reporting periods beginning on or after October

1, 2005’’ and inserting ‘‘and (beginning with respect to cost

reporting periods beginning during fiscal year 2013) for covered

skilled nursing services described in section 1888(e)(2)(A) fur-

nished by hospital providers of extended care services (as

described in section 1883)’’;

(2) in clause (i), by striking ‘‘reduced by’’ and all that

follows through ‘‘allowable; and’’ and inserting the following:

‘‘reduced by—

‘‘(I) for cost reporting periods beginning on or after October

1, 2005, but before fiscal year 2013, 30 percent of such amount

otherwise allowable; and

‘‘(II) for cost reporting periods beginning during fiscal year

2013 or a subsequent fiscal year, by 35 percent of such amount

otherwise allowable.’’; and

(3) in clause (ii), by striking ‘‘such section shall not be

reduced.’’ and inserting ‘‘such section—

‘‘(I) for cost reporting periods beginning on or after October

1, 2005, but before fiscal year 2013, shall not be reduced;

‘‘(II) for cost reporting periods beginning during fiscal year

2013, shall be reduced by 12 percent of such amount otherwise

allowable;

‘‘(III) for cost reporting periods beginning during fiscal year

2014, shall be reduced by 24 percent of such amount otherwise

allowable; and

‘‘(IV) for cost reporting periods beginning during a subse-

quent fiscal year, shall be reduced by 35 percent of such amount

otherwise allowable.’’.

ERTAIN

THER

ROVIDERS

.—Section 1861(v)(1) of such Act

(42 U.S.C. 1395x(v)(1)) is amended by adding at the end the fol-

lowing new subparagraph:

‘‘(W)(i) In determining such reasonable costs for providers

described in clause (ii), the amount of bad debts otherwise treated

as allowable costs which are attributable to deductibles and coinsur-

ance amounts under this title shall be reduced—

‘‘(I) for cost reporting periods beginning during fiscal year

2013, by 12 percent of such amount otherwise allowable;

‘‘(II) for cost reporting periods beginning during fiscal year

2014, by 24 percent of such amount otherwise allowable; and

‘‘(III) for cost reporting periods beginning during a subse-

quent fiscal year, by 35 percent of such amount otherwise

allowable.

‘‘(ii) A provider described in this clause is a provider of services

not described in subparagraph (T) or (V), a supplier, or any other

type of entity that receives payment for bad debts under the

authority under subparagraph (A).’’.

(d) C

ONFORMING

MENDMENT FOR

OSPITAL

ERVICES

.—Section

4008(c) of the Omnibus Budget Reconciliation Act of 1987 (42 U.S.C.

1395 note), as amended by section 8402 of the Technical and Mis-

cellaneous Revenue Act of 1988 and section 6023 of the Omnibus

Budget Reconciliation Act of 1989, is amended by adding at the

42 USC 1395f

note.

Time period.

Time periods.

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126 STAT. 193 PUBLIC LAW 112–96—FEB. 22, 2012

end the following new sentence: ‘‘Effective for cost reporting periods

beginning on or after October 1, 2012, the provisions of the previous

two sentences shall not apply.’’.

SEC. 3202. REBASE MEDICARE CLINICAL LABORATORY PAYMENT

RATES.

Section 1833(h)(2)(A) of the Social Security Act (42 U.S.C.

1395l(h)(2)(A)) is amended—

(1) in clause (i), by striking ‘‘paragraph (4)’’ and inserting

‘‘clause (v), subparagraph (B), and paragraph (4)’’;

(2) by moving clause (iv), subclauses (I) and (II) of such

clause, and the flush matter at the end of such clause 6 ems

to the left; and

(3) by adding at the end the following new clause:

‘‘(v) The Secretary shall reduce by 2 percent the fee schedules

otherwise determined under clause (i) for 2013, and such reduced

fee schedules shall serve as the base for 2014 and subsequent

years.’’.

SEC. 3203. REBASING STATE DSH ALLOTMENTS FOR FISCAL YEAR 2021.

Section 1923(f) of the Social Security Act (42 U.S.C. 1396r–

4(f)) is amended—

(1) by redesignating paragraph (8) as paragraph (9);

(2) in paragraph (3)(A) by striking ‘‘paragraphs (6) and

(7)’’ and inserting ‘‘paragraphs (6), (7), and (8)’’; and

(3) by inserting after paragraph (7) the following new para-

graph:

‘‘(8) R

EBASING OF STATE DSH ALLOTMENTS FOR FISCAL YEAR

2021

.—With respect to fiscal year 2021, for purposes of applying

paragraph (3)(A) to determine the DSH allotment for a State,

the amount of the DSH allotment for the State under paragraph

(3) for fiscal year 2020 shall be equal to the DSH allotment

as reduced under paragraph (7).’’.

SEC. 3204. TECHNICAL CORRECTION TO THE DISASTER RECOVERY

FMAP PROVISION.

(a) I

ENERAL

.—Section 1905(aa) of the Social Security Act

(42 U.S.C. 1396d(aa)) is amended—

(1) in paragraph (1)—

(A) in subparagraph (A), by striking ‘‘the Federal med-

ical assistance percentage determined for the fiscal year’’

and all that follows through the period and inserting ‘‘the

State’s regular FMAP shall be increased by 50 percent

of the number of percentage points by which the State’s

regular FMAP for such fiscal year is less than the Federal

medical assistance percentage determined for the State

for the preceding fiscal year after the application of only

subsection (a) of section 5001 of Public Law 111–5 (if

applicable to the preceding fiscal year) and without regard

to this subsection, subsections (y) and (z), and subsections

(b) and (c) of section 5001 of Public Law 111–5.’’; and

(B) in subparagraph (B), by striking ‘‘Federal medical

assistance percentage determined for the preceding fiscal

year’’ and all that follows through the period and inserting

‘‘State’s regular FMAP for such fiscal year shall be

increased by 25 percent of the number of percentage points

by which the State’s regular FMAP for such fiscal year

Applicability.

Reduction.

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126 STAT. 194 PUBLIC LAW 112–96—FEB. 22, 2012

is less than the Federal medical assistance percentage

received by the State during the preceding fiscal year.’’;

(2) in paragraph (2)—

(A) in subparagraph (A)—

(i) by striking ‘‘Federal medical assistance percent-

age determined for the State for the fiscal year’’ and

all that follows through ‘‘Act,’’ and inserting ‘‘State’s

regular FMAP for the fiscal year’’; and

(ii) by striking ‘‘subsection (y)’’ and inserting ‘‘sub-

sections (y) and (z)’’; and

(B) in subparagraph (B), by striking ‘‘Federal medical

assistance percentage determined for the State for the fiscal

year’’ and all that follows through ‘‘Act,’’ and inserting

‘‘State’s regular FMAP for the fiscal year’’;

(3) by redesignating paragraph (3) as paragraph (4); and

(4) by inserting after paragraph (2) the following:

‘‘(3) In this subsection, the term ‘regular FMAP’ means, for

each fiscal year for which this subsection applies to a State, the

Federal medical assistance percentage that would otherwise apply

to the State for the fiscal year, as determined under subsection

(b) and without regard to this subsection, subsections (y) and (z),

and section 10202 of the Patient Protection and Affordable Care

Act.’’.

(b) E

FFECTIVE

ATE

.—The amendments made by subsection

(a) shall take effect on October 1, 2013.

SEC. 3205. PREVENTION AND PUBLIC HEALTH FUND.

Section 4002(b) of the Patient Protection and Affordable Care

Act (42 U.S.C. 300u–11(b)) is amended by striking paragraphs

(2) through (6) and inserting the following:

‘‘(2) for each of fiscal years 2012 through 2017,

$1,000,000,000;

‘‘(3) for each of fiscal years 2018 and 2019, $1,250,000,000;

‘‘(4) for each of fiscal years 2020 and 2021, $1,500,000,000;

and

‘‘(5) for fiscal year 2022, and each fiscal year thereafter,

$2,000,000,000.’’.

TITLE IV—TANF EXTENSION

SEC. 4001. SHORT TITLE.

This title may be cited as the ‘‘Welfare Integrity and Data

Improvement Act’’.

SEC. 4002. EXTENSION OF PROGRAM.

(a) F

AMILY

SSISTANCE

RANTS

.—Section 403(a)(1) of the Social

Security Act (42 U.S.C. 603(a)(1)) is amended—

(1) in subparagraph (A), by striking ‘‘each of fiscal years

1996’’ and all that follows through ‘‘2003’’ and inserting ‘‘fiscal

year 2012’’;

(2) in subparagraph (B)—

(A) by inserting ‘‘(as in effect just before the enactment

of the Welfare Integrity and Data Improvement Act)’’ after

‘‘this paragraph’’ the first place it appears; and

(B) by inserting ‘‘(as so in effect)’’ after ‘‘this paragraph’’

the second place it appears; and

Welfare Integrity

and Data

Improvement

Act.

42 USC 1305

note.

42 USC 1396d

note.

Definition.

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126 STAT. 195 PUBLIC LAW 112–96—FEB. 22, 2012

(3) in subparagraph (C), by striking ‘‘2003’’ and inserting

‘‘2012’’.

(b) H

EALTHY

ARRIAGE

ROMOTION AND

ESPONSIBLE

ATHER

HOOD

RANTS

.—Section 403(a)(2)(D) of such Act (42 U.S.C.

603(a)(2)(D)) is amended by striking ‘‘2011’’ each place it appears

and inserting ‘‘2012’’.

AINTENANCE OF

FFORT

EQUIREMENT

.—Section 409(a)(7)

of such Act (42 U.S.C. 609(a)(7)) is amended—

(1) in subparagraph (A), by striking ‘‘fiscal year’’ and all

that follows through ‘‘2013’’ and inserting ‘‘a fiscal year’’; and

(2) in subparagraph (B)(ii)—

(A) by striking ‘‘for fiscal years 1997 through 2012,’’;

and

(B) by striking ‘‘407(a) for the fiscal year,’’ and inserting

‘‘407(a),’’.

(d) T

RIBAL

RANTS

.—Section 412(a) of such Act (42 U.S.C.

612(a)) is amended in each of paragraphs (1)(A) and (2)(A) by

striking ‘‘each of fiscal years 1997’’ and all that follows through

‘‘2003’’ and inserting ‘‘fiscal year 2012’’.

(e) S

TUDIES AND

EMONSTRATIONS

.—Section 413(h)(1) of such

Act (42 U.S.C. 613(h)(1)) is amended by striking ‘‘each of fiscal

years 1997 through 2002’’ and inserting ‘‘fiscal year 2012’’.

(f) C

ENSUS

UREAU

TUDY

.—Section 414(b) of such Act (42

U.S.C. 614(b)) is amended by striking ‘‘each of fiscal years 1996’’

and all that follows through ‘‘2003’’ and inserting ‘‘fiscal year 2012’’.

(g) C

HILD

ARE

NTITLEMENT

.—Section 418(a)(3) of such Act

(42 U.S.C. 618(a)(3)) is amended by striking ‘‘appropriated’’ and

all that follows and inserting ‘‘appropriated $2,917,000,000 for fiscal

year 2012.’’.

(h) G

RANTS TO

ERRITORIES

.—Section 1108(b)(2) of such Act

(42 U.S.C. 1308(b)(2)) is amended by striking ‘‘fiscal years 1997

through 2003’’ and inserting ‘‘fiscal year 2012’’.

(i) P

REVENTION OF

UPLICATE

PPROPRIATIONS FOR

ISCAL

EAR

2012.—Expenditures made pursuant to the Short-Term TANF

Extension Act (Public Law 112–35) and the Temporary Payroll

Tax Cut Continuation Act of 2011 (Public Law 112–78) for fiscal

year 2012 shall be charged to the applicable appropriation or

authorization provided by the amendments made by this section

for such fiscal year.

(j) E

FFECTIVE

ATE

.—This section and the amendments made

by this section shall take effect on the date of the enactment

of this Act.

SEC. 4003. DATA EXCHANGE STANDARDIZATION FOR IMPROVED INTER-

OPERABILITY.

(a) I

ENERAL

.—Section 411 of the Social Security Act (42

U.S.C. 611) is amended by adding at the end the following:

‘‘(d) D

ATA

XCHANGE

TANDARDIZATION FOR

MPROVED

NTER

OPERABILITY

.—

‘‘(1) D

ATA EXCHANGE STANDARDS

.—

‘‘(A) D

ESIGNATION

.—The Secretary, in consultation

with an interagency work group which shall be established

by the Office of Management and Budget, and considering

State and tribal perspectives, shall, by rule, designate a

data exchange standard for any category of information

required to be reported under this part.

Establishment.

Regulations.

42 USC 603 note.

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126 STAT. 196 PUBLIC LAW 112–96—FEB. 22, 2012

‘‘(B) D

ATA EXCHANGE STANDARDS MUST BE NONPROPRI

ETARY AND INTEROPERABLE

.—The data exchange standard

designated under subparagraph (A) shall, to the extent

practicable, be nonproprietary and interoperable.

‘‘(C) O

THER REQUIREMENTS

.—In designating data

exchange standards under this section, the Secretary shall,

to the extent practicable, incorporate—

‘‘(i) interoperable standards developed and main-

tained by an international voluntary consensus stand-

ards body, as defined by the Office of Management

and Budget, such as the International Organization

for Standardization;

‘‘(ii) interoperable standards developed and main-

tained by intergovernmental partnerships, such as the

National Information Exchange Model; and

‘‘(iii) interoperable standards developed and main-

tained by Federal entities with authority over con-

tracting and financial assistance, such as the Federal

Acquisition Regulatory Council.

‘‘(2) D

ATA EXCHANGE STANDARDS FOR REPORTING

.—

‘‘(A) D

ESIGNATION

.—The Secretary, in consultation

with an interagency work group established by the Office

of Management and Budget, and considering State and

tribal perspectives, shall, by rule, designate data exchange

standards to govern the data reporting required under

this part.

‘‘(B) R

EQUIREMENTS

.—The data exchange standards

required by subparagraph (A) shall, to the extent prac-

ticable—

‘‘(i) incorporate a widely-accepted, nonproprietary,

searchable, computer-readable format;

‘‘(ii) be consistent with and implement applicable

accounting principles; and

‘‘(iii) be capable of being continually upgraded as

necessary.

‘‘(C) I

NCORPORATION OF NONPROPRIETARY STANDARDS

.—

In designating reporting standards under this paragraph,

the Secretary shall, to the extent practicable, incorporate

existing nonproprietary standards, such as the eXtensible

Markup Language.’’.

(b) E

FFECTIVE

ATES

.—

(1) D

ATA EXCHANGE STANDARDS

.—The Secretary of Health

and Human Services shall issue a proposed rule under section

411(d)(1) of the Social Security Act within 12 months after

the date of the enactment of this section, and shall issue

a final rule under such section 411(d)(1), after public comment,

within 24 months after such date of enactment.

(2) D

ATA REPORTING STANDARDS

.—The reporting standards

required under section 411(d)(2) of such Act shall become effec-

tive with respect to reports required in the first reporting

period, after the effective date of the final rule referred to

in paragraph (1) of this subsection, for which the authority

for data collection and reporting is established or renewed

under the Paperwork Reduction Act.

Regulations.

Deadlines.

42 USC 611 note.

Establishment.

Regulations.

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126 STAT. 197 PUBLIC LAW 112–96—FEB. 22, 2012

SEC. 4004. SPENDING POLICIES FOR ASSISTANCE UNDER STATE TANF

PROGRAMS.

(a) S

TATE

EQUIREMENT

.—Section 408(a) of the Social Security

Act (42 U.S.C. 608(a)) is amended by adding at the end the fol-

lowing:

‘‘(12) S

TATE REQUIREMENT TO PREVENT UNAUTHORIZED

SPENDING OF BENEFITS

.—

‘‘(A) I

N GENERAL

.—A State to which a grant is made

under section 403 shall maintain policies and practices

as necessary to prevent assistance provided under the State

program funded under this part from being used in any

electronic benefit transfer transaction in—

‘‘(i) any liquor store;

‘‘(ii) any casino, gambling casino, or gaming

establishment; or

‘‘(iii) any retail establishment which provides

adult-oriented entertainment in which performers dis-

robe or perform in an unclothed state for entertain-

ment.

‘‘(B) D

EFINITIONS

.—For purposes of subparagraph (A)—

‘‘(i) L

IQUOR STORE

.—The term ‘liquor store’ means

any retail establishment which sells exclusively or pri-

marily intoxicating liquor. Such term does not include

a grocery store which sells both intoxicating liquor

and groceries including staple foods (within the

meaning of section 3(r) of the Food and Nutrition Act

of 2008 (7 U.S.C. 2012(r))).

‘‘(ii) C

ASINO

GAMBLING CASINO

OR GAMING

ESTABLISHMENT

.—The terms ‘casino’, ‘gambling casino’,

and ‘gaming establishment’ do not include—

‘‘(I) a grocery store which sells groceries

including such staple foods and which also offers,

or is located within the same building or complex

as, casino, gambling, or gaming activities; or

‘‘(II) any other establishment that offers

casino, gambling, or gaming activities incidental

to the principal purpose of the business.

‘‘(iii) E

LECTRONIC BENEFIT TRANSFER TRANS

ACTION

.—The term ‘electronic benefit transfer trans-

action’ means the use of a credit or debit card service,

automated teller machine, point-of-sale terminal, or

access to an online system for the withdrawal of funds

or the processing of a payment for merchandise or

a service.’’.

(b) P

ENALTY

.—Section 409(a) of such Act (42 U.S.C. 609(a))

is amended by adding at the end the following:

‘‘(16) P

ENALTY FOR FAILURE TO ENFORCE SPENDING POLI

CIES

.—

‘‘(A) I

N GENERAL

.—If, within 2 years after the date

of the enactment of this paragraph, any State has not

reported to the Secretary on such State’s implementation

of the policies and practices required by section 408(a)(12),

or the Secretary determines, based on the information pro-

vided in State reports, that any State has not implemented

and maintained such policies and practices, the Secretary

shall reduce, by an amount equal to 5 percent of the

Time period.

Determination.

Reduction.

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126 STAT. 198 PUBLIC LAW 112–96—FEB. 22, 2012

State family assistance grant, the grant payable to such

State under section 403(a)(1) for—

‘‘(i) the fiscal year immediately succeeding the year

in which such 2-year period ends; and

‘‘(ii) each succeeding fiscal year in which the State

does not demonstrate that such State has implemented

and maintained such policies and practices.

‘‘(B) R

EDUCTION OF APPLICABLE PENALTY

.—The Sec-

retary may reduce the amount of the reduction required

under subparagraph (A) based on the degree of noncompli-

ance of the State.

‘‘(C) S

TATE NOT RESPONSIBLE FOR INDIVIDUAL VIOLA

TIONS

.—Fraudulent activity by any individual in an

attempt to circumvent the policies and practices required

by section 408(a)(12) shall not trigger a State penalty under

subparagraph (A).’’.

DDITIONAL

TATE

LAN

EQUIREMENTS

.—Section

402(a)(1)(A) of such Act (42 U.S.C. 602(a)(1)(A)) is amended by

adding at the end the following:

‘‘(vii) Implement policies and procedures as nec-

essary to prevent access to assistance provided under

the State program funded under this part through

any electronic fund transaction in an automated teller

machine or point-of-sale device located in a place

described in section 408(a)(12), including a plan to

ensure that recipients of the assistance have adequate

access to their cash assistance.

‘‘(viii) Ensure that recipients of assistance provided

under the State program funded under this part have

access to using or withdrawing assistance with

minimal fees or charges, including an opportunity to

access assistance with no fee or charges, and are pro-

vided information on applicable fees and surcharges

that apply to electronic fund transactions involving

the assistance, and that such information is made pub-

licly available.’’.

(d) C

ONFORMING

MENDMENT

.—Section 409(c)(4) of such Act

(42 U.S.C. 609(c)(4)) is amended by striking ‘‘or (13)’’ and inserting

‘‘(13), or (16)’’.

SEC. 4005. TECHNICAL CORRECTIONS.

(a) Section 404(d)(1)(A) of the Social Security Act (42 U.S.C.

604(d)(1)(A)) is amended by striking ‘‘subtitle 1 of Title’’ and

inserting ‘‘Subtitle A of title’’.

(b) Sections 407(c)(2)(A)(i) and 409(a)(3)(C) of such Act (42

U.S.C. 607(c)(2)(A)(i) and 609(a)(3)(C)) are each amended by striking

‘‘403(b)(6)’’ and inserting ‘‘403(b)(5)’’.

is amended by moving clauses (i) and (ii) 2 ems to the right.

(d) Section 409(c)(2) of such Act (42 U.S.C. 609(c)(2)) is amended

by inserting a comma after ‘‘appropriate’’.

(e) Section 411(a)(1)(A)(ii)(III) of such Act (42 U.S.C.

611(a)(1)(A)(ii)(III)) is amended by striking the last close paren-

thesis.

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126 STAT. 199 PUBLIC LAW 112–96—FEB. 22, 2012

TITLE V—FEDERAL EMPLOYEES

RETIREMENT

SEC. 5001. INCREASE IN CONTRIBUTIONS TO FEDERAL EMPLOYEES’

RETIREMENT SYSTEM FOR NEW EMPLOYEES.

(a) D

EFINITIONS

.—Section 8401 of title 5, United States Code,

is amended—

(1) in paragraph (35), by striking ‘‘and’’ at the end;

(2) in paragraph (36), by striking the period and inserting

‘‘; and’’; and

(3) by adding at the end the following:

‘‘(37) the term ‘revised annuity employee’ means any indi-

vidual who—

‘‘(A) on December 31, 2012—

‘‘(i) is not an employee or Member covered under

this chapter;

‘‘(ii) is not performing civilian service which is

creditable service under section 8411; and

‘‘(iii) has less than 5 years of creditable civilian

service under section 8411; and

‘‘(B) after December 31, 2012, becomes employed as

an employee or becomes a Member covered under this

chapter performing service which is creditable service

under section 8411.’’.

(b) I

NCREASE IN

ONTRIBUTIONS

.—Section 8422(a)(3) of title

5, United States Code, is amended—

(1) by striking ‘‘The applicable percentage under this para-

graph for civilian service’’ and inserting ‘‘(A) The applicable

percentage under this paragraph for civilian service by

employees or Members other than revised annuity employees’’;

and

(2) by adding at the end the following:

‘‘(B) The applicable percentage under this paragraph for civilian

service by revised annuity employees shall be as follows:

‘‘Employee 9.3 After December 31, 2012.

Congressional employee 9.3 After December 31, 2012.

Member 9.3 After December 31, 2012.

Law enforcement officer, fire-

fighter, member of the Capitol

Police, member of the Su-

preme Court Police, or air

traffic controller

9.8 After December 31, 2012.

Nuclear materials courier 9.8 After December 31, 2012.

Customs and border protection

officer

9.8 After December 31, 2012.’’.

EDUCTION IN

ONGRESSIONAL

NNUITIES

.—

(1) I

N GENERAL

.—Section 8415 of title 5, United States

Code, is amended—

(A) by redesignating subsections (d) through (m) as

subsections (e) through (n), respectively; and

(B) by inserting after subsection (c) the following:

‘‘(d) Notwithstanding any other provision of law, the annuity

of an individual described in subsection (b) or (c) who is a revised

annuity employee shall be computed in the same manner as in

the case of an individual described in subsection (a).’’.

(2) T

ECHNICAL AND CONFORMING AMENDMENTS

.—

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126 STAT. 200 PUBLIC LAW 112–96—FEB. 22, 2012

(A) Section 8422(d)(2) of title 5, United States Code,

is amended by striking ‘‘section 8415(l)’’ and inserting ‘‘sec-

tion 8415(m)’’.

(B) Section 8452(d)(1) of title 5, United States Code,

is amended by striking ‘‘subsection (g)’’ and inserting ‘‘sub-

section (h)’’.

is amended by striking ‘‘section 8415(a) through (h)’’ and

inserting ‘‘section 8415(a) through (i)’’.

(D) Section 805(a)(2)(B) of the Foreign Service Act of

1980 (22 U.S.C. 4045(a)(2)(B)) is amended by striking ‘‘sec-

tion 8415(d)’’ and inserting ‘‘section 8415(e)’’.

(E) Section 806(a) of the Foreign Service Act of 1980

(22 U.S.C. 4046(a)) is amended by striking ‘‘section 8415(d)’’

each place it appears and inserting ‘‘section 8415(e)’’.

(F) Section 855(b) of the Foreign Service Act of 1980

(22 U.S.C. 4071d(b)) is amended—

(i) in paragraph (2)(A), by striking ‘‘section

8415(d)(1)’’ and inserting ‘‘section 8415(e)(1)’’; and

(ii) in paragraph (5), by striking ‘‘section 8415(f)(1)’’

and inserting ‘‘section 8415(g)(1)’’.

(G) Section 303(b)(1) of the Central Intelligence Agency

Retirement Act (50 U.S.C. 2153(b)(1)) is amended by

striking ‘‘section 8415(d)’’ and inserting ‘‘section 8415(e)’’.

SEC. 5002. FOREIGN SERVICE PENSION SYSTEM.

(a) D

EFINITION

.—Section 852 of the Foreign Service Act of

1980 (22 U.S.C. 4071a) is amended—

(1) by redesignating paragraphs (7), (8), and (9) as para-

graphs (8), (9), and (10), respectively; and

(2) by inserting after paragraph (6) the following:

‘‘(7) the term ‘revised annuity participant’ means any indi-

vidual who—

‘‘(A) on December 31, 2012—

‘‘(i) is not a participant;

‘‘(ii) is not performing service which is creditable

service under section 854; and

‘‘(iii) has less than 5 years creditable service under

section 854; and

‘‘(B) after December 31, 2012, becomes a participant

performing service which is creditable service under section

854;’’.

(b) D

EDUCTIONS AND

ITHHOLDINGS

ROM

.—Section

856(a)(2) of the Foreign Service Act of 1980 (22 U.S.C. 4071e(a)(2))

is amended—

(1) by striking ‘‘The applicable percentage under this sub-

section’’ and inserting ‘‘(A) The applicable percentage for a

participant other than a revised annuity participant’’; and

(2) by adding at the end the following:

‘‘(B) The applicable percentage for a revised annuity participant

shall be as follows:

‘‘9.85 ..................................... After December 31, 2012’’.

SEC. 5003. CENTRAL INTELLIGENCE AGENCY RETIREMENT AND DIS-

ABILITY SYSTEM.

Section 211(a) of the Central Intelligence Agency Retirement

Act (50 U.S.C. 2021(a)) is amended—

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126 STAT. 201 PUBLIC LAW 112–96—FEB. 22, 2012

(1) by redesignating paragraph (3) as paragraph (4); and

(2) by striking paragraphs (1) and (2) and inserting the

following:

‘‘(1) D

EFINITION

.—In this subsection, the term ‘revised

annuity participant’ means an individual who—

‘‘(A) on December 31, 2012—

‘‘(i) is not a participant;

‘‘(ii) is not performing qualifying service; and

‘‘(iii) has less than 5 years of qualifying service;

and

‘‘(B) after December 31, 2012, becomes a participant

performing qualifying service.

‘‘(2) C

ONTRIBUTIONS

.—

‘‘(A) I

N GENERAL

.—Except as provided in subsection

(d), 7 percent of the basic pay received by a participant

other than a revised annuity participant for any pay period

shall be deducted and withheld from the pay of that partici-

pant and contributed to the fund.

‘‘(B) R

EVISED ANNUITY PARTICIPANTS

.—Except as pro-

vided in subsection (d), 9.3 percent of the basic pay received

by a revised annuity participant for any pay period shall

be deducted and withheld from the pay of that revised

annuity participant and contributed to the fund.

‘‘(3) A

GENCY CONTRIBUTIONS

.—

‘‘(A) I

N GENERAL

.—An amount equal to 7 percent of

the basic pay received by a participant other than a revised

annuity participant shall be contributed to the fund for

a pay period for the participant from the appropriation

or fund which is used for payment of the participant’s

basic pay.

‘‘(B) R

EVISED ANNUITY PARTICIPANTS

.—An amount

equal to 4.7 percent of the basic pay received by a revised

annuity participant shall be contributed to the fund for

a pay period for the revised annuity participant from the

appropriation or fund which is used for payment of the

revised annuity participant’s basic pay.’’.

TITLE VI—PUBLIC SAFETY COMMU-

NICATIONS AND ELECTROMAGNETIC

SPECTRUM AUCTIONS

SEC. 6001. DEFINITIONS.

In this title:

(1) 700

MHZ BAND

.—The term ‘‘700 MHz band’’ means

the portion of the electromagnetic spectrum between the fre-

quencies from 698 megahertz to 806 megahertz.

(2) 700

MHZ D BLOCK SPECTRUM

.—The term ‘‘700 MHz

D block spectrum’’ means the portion of the electromagnetic

spectrum between the frequencies from 758 megahertz to 763

megahertz and between the frequencies from 788 megahertz

to 793 megahertz.

(3) A

PPROPRIATE COMMITTEES OF CONGRESS

.—Except as

otherwise specifically provided, the term ‘‘appropriate commit-

tees of Congress’’ means—

47 USC 1401.

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126 STAT. 202 PUBLIC LAW 112–96—FEB. 22, 2012

(A) the Committee on Commerce, Science, and

Transportation of the Senate; and

(B) the Committee on Energy and Commerce of the

House of Representatives.

(4) A

SSISTANT SECRETARY

.—The term ‘‘Assistant Secretary’’

means the Assistant Secretary of Commerce for Communica-

tions and Information.

(5) B

OARD

.—The term ‘‘Board’’ means the Board of the

First Responder Network Authority established under section

6204(b).

(6) B

ROADCAST TELEVISION LICENSEE

.—The term ‘‘broadcast

television licensee’’ means the licensee of—

(A) a full-power television station; or

(B) a low-power television station that has been

accorded primary status as a Class A television licensee

under section 73.6001(a) of title 47, Code of Federal Regula-

tions.

(7) B

ROADCAST TELEVISION SPECTRUM

.—The term ‘‘broad-

cast television spectrum’’ means the portions of the electro-

magnetic spectrum between the frequencies from 54 megahertz

to 72 megahertz, from 76 megahertz to 88 megahertz, from

174 megahertz to 216 megahertz, and from 470 megahertz

to 698 megahertz.

(8) C

OMMERCIAL MOBILE DATA SERVICE

.—The term

‘‘commercial mobile data service’’ means any mobile service

(as defined in section 3 of the Communications Act of 1934

(47 U.S.C. 153)) that is—

(A) a data service;

(B) provided for profit; and

users as to be effectively available to a substantial portion

of the public, as specified by regulation by the Commission.

(9) C

OMMERCIAL MOBILE SERVICE

.—The term ‘‘commercial

mobile service’’ has the meaning given such term in section

332 of the Communications Act of 1934 (47 U.S.C. 332).

(10) C

OMMERCIAL STANDARDS

.—The term ‘‘commercial

standards’’ means the technical standards followed by the

commercial mobile service and commercial mobile data service

industries for network, device, and Internet Protocol

connectivity. Such term includes standards developed by the

Third Generation Partnership Project (3GPP), the Institute of

Electrical and Electronics Engineers (IEEE), the Alliance for

Telecommunications Industry Solutions (ATIS), the Internet

Engineering Task Force (IETF), and the International Tele-

communication Union (ITU).

(11) C

OMMISSION

.—The term ‘‘Commission’’ means the Fed-

eral Communications Commission.

(12) C

ORE NETWORK

.—The term ‘‘core network’’ means the

core network described in section 6202(b)(1).

(13) E

MERGENCY CALL

.—The term ‘‘emergency call’’ means

any real-time communication with a public safety answering

point or other emergency management or response agency,

including—

(A) through voice, text, or video and related data; and

(B) nonhuman-initiated automatic event alerts, such

as alarms, telematics, or sensor data, which may also

include real-time voice, text, or video communications.

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126 STAT. 203 PUBLIC LAW 112–96—FEB. 22, 2012

(14) E

XISTING PUBLIC SAFETY BROADBAND SPECTRUM

.—The

term ‘‘existing public safety broadband spectrum’’ means the

portion of the electromagnetic spectrum between the fre-

quencies—

(A) from 763 megahertz to 768 megahertz;

(B) from 793 megahertz to 798 megahertz;

(D) from 798 megahertz to 799 megahertz.

(15) F

IRST RESPONDER NETWORK AUTHORITY

.—The term

‘‘First Responder Network Authority’’ means the First

Responder Network Authority established under section 6204.

(16) F

ORWARD AUCTION

.—The term ‘‘forward auction’’

means the portion of an incentive auction of broadcast television

spectrum under section 6403(c).

(17) I

NCENTIVE AUCTION

.—The term ‘‘incentive auction’’

means a system of competitive bidding under subparagraph

(G) of section 309(j)(8) of the Communications Act of 1934,

as added by section 6402.

(18) I

NTEROPERABILITY BOARD

.—The term ‘‘Interoperability

Board’’ means the Technical Advisory Board for First Responder

Interoperability established under section 6203.

(19) M

ULTICHANNEL VIDEO PROGRAMMING DISTRIBUTOR

.—

The term ‘‘multichannel video programming distributor’’ has

the meaning given such term in section 602 of the Communica-

tions Act of 1934 (47 U.S.C. 522).

(20) N

ARROWBAND SPECTRUM

.—The term ‘‘narrowband

spectrum’’ means the portion of the electromagnetic spectrum

between the frequencies from 769 megahertz to 775 megahertz

and between the frequencies from 799 megahertz to 805 mega-

hertz.

(21) N

ATIONWIDE PUBLIC SAFETY BROADBAND NETWORK

.—

The term ‘‘nationwide public safety broadband network’’ means

the nationwide, interoperable public safety broadband network

described in section 6202.

(22) N

EXT GENERATION 9

–

1 SERVICES

.—The term ‘‘Next

Generation 9–1–1 services’’ means an IP-based system com-

prised of hardware, software, data, and operational policies

and procedures that—

(A) provides standardized interfaces from emergency

call and message services to support emergency commu-

nications;

(B) processes all types of emergency calls, including

voice, text, data, and multimedia information;

data useful to call routing and handling;

(D) delivers the emergency calls, messages, and data

to the appropriate public safety answering point and other

appropriate emergency entities;

(E) supports data or video communications needs for

coordinated incident response and management; and

(F) provides broadband service to public safety

answering points or other first responder entities.

(23) NIST.—The term ‘‘NIST’’ means the National Institute

of Standards and Technology.

(24) NTIA.—The term ‘‘NTIA’’ means the National Tele-

communications and Information Administration.

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126 STAT. 204 PUBLIC LAW 112–96—FEB. 22, 2012

(25) P

UBLIC SAFETY ANSWERING POINT

.—The term ‘‘public

safety answering point’’ has the meaning given such term in

section 222 of the Communications Act of 1934 (47 U.S.C.

222).

(26) P

UBLIC SAFETY ENTITY

.—The term ‘‘public safety

entity’’ means an entity that provides public safety services.

(27) P

UBLIC SAFETY SERVICES

.—The term ‘‘public safety

services’’—

(A) has the meaning given the term in section 337(f)

of the Communications Act of 1934 (47 U.S.C. 337(f)); and

(B) includes services provided by emergency response

providers, as that term is defined in section 2 of the Home-

land Security Act of 2002 (6 U.S.C. 101).

(28) P

UBLIC SAFETY TRUST FUND

.—The term ‘‘Public Safety

Trust Fund’’ means the trust fund established under section

6413(a)(1).

(29) R

ADIO ACCESS NETWORK

.—The term ‘‘radio access net-

work’’ means the radio access network described in section

6202(b)(2).

(30) R

EVERSE AUCTION

.—The term ‘‘reverse auction’’ means

the portion of an incentive auction of broadcast television spec-

trum under section 6403(a), in which a broadcast television

licensee may submit bids stating the amount it would accept

for voluntarily relinquishing some or all of its broadcast tele-

vision spectrum usage rights.

(31) S

TATE

.—The term ‘‘State’’ has the meaning given such

term in section 3 of the Communications Act of 1934 (47 U.S.C.

153).

(32) U

LTRA HIGH FREQUENCY

.—The term ‘‘ultra high fre-

quency’’ means, with respect to a television channel, that the

channel is located in the portion of the electromagnetic spec-

trum between the frequencies from 470 megahertz to 698 mega-

hertz.

(33) V

ERY HIGH FREQUENCY

.—The term ‘‘very high fre-

quency’’ means, with respect to a television channel, that the

channel is located in the portion of the electromagnetic spec-

trum between the frequencies from 54 megahertz to 72 mega-

hertz, from 76 megahertz to 88 megahertz, or from 174 mega-

hertz to 216 megahertz.

SEC. 6002. RULE OF CONSTRUCTION.

Each range of frequencies described in this title shall be con-

strued to be inclusive of the upper and lower frequencies in the

range.

SEC. 6003. ENFORCEMENT.

(a) I

ENERAL

.—The Commission shall implement and enforce

this title as if this title is a part of the Communications Act

of 1934 (47 U.S.C. 151 et seq.). A violation of this title, or a

regulation promulgated under this title, shall be considered to be

a violation of the Communications Act of 1934, or a regulation

promulgated under such Act, respectively.

(b) E

XCEPTIONS

.—

(1) O

THER AGENCIES

.—Subsection (a) does not apply in

the case of a provision of this title that is expressly required

to be carried out by an agency (as defined in section 551

of title 5, United States Code) other than the Commission.

47 USC 1403.

47 USC 1402.

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126 STAT. 205 PUBLIC LAW 112–96—FEB. 22, 2012

(2) NTIA

REGULATIONS

.—The Assistant Secretary may

promulgate such regulations as are necessary to implement

and enforce any provision of this title that is expressly required

to be carried out by the Assistant Secretary.

SEC. 6004. NATIONAL SECURITY RESTRICTIONS ON USE OF FUNDS

AND AUCTION PARTICIPATION.

(a) U

SE OF

UNDS

.—No funds made available by subtitle B

or C may be used to make payments under a contract to a person

described in subsection (c).

(b) A

UCTION

ARTICIPATION

.—A person described in subsection

section 309(j) of the Communications Act of 1934 (47 U.S.C. 309(j))—

(1) that is required to be conducted by this title; or

(2) in which any spectrum usage rights for which licenses

are being assigned were made available under clause (i) of

subparagraph (G) of paragraph (8) of such section, as added

by section 6402.

ERSON

ESCRIBED

.—A person described in this subsection

is a person who has been, for reasons of national security, barred

by any agency of the Federal Government from bidding on a con-

tract, participating in an auction, or receiving a grant.

Subtitle A—Reallocation of Public Safety

Spectrum

SEC. 6101. REALLOCATION OF D BLOCK TO PUBLIC SAFETY.

(a) I

ENERAL

.—The Commission shall reallocate the 700

MHz D block spectrum for use by public safety entities in accordance

with the provisions of this Act.

(b) S

PECTRUM

LLOCATION

.—Section 337(a) of the Communica-

tions Act of 1934 (47 U.S.C. 337(a)) is amended—

(1) by striking ‘‘24’’ in paragraph (1) and inserting ‘‘34’’;

and

(2) by striking ‘‘36’’ in paragraph (2) and inserting ‘‘26’’.

SEC. 6102. FLEXIBLE USE OF NARROWBAND SPECTRUM.

The Commission may allow the narrowband spectrum to be

used in a flexible manner, including usage for public safety

broadband communications, subject to such technical and inter-

ference protection measures as the Commission may require.

SEC. 6103. 470–512 MHZ PUBLIC SAFETY SPECTRUM.

(a) I

ENERAL

.—Not later than 9 years after the date of

enactment of this title, the Commission shall—

(1) reallocate the spectrum in the 470–512 MHz band

(referred to in this section as the ‘‘T-Band spectrum’’) currently

used by public safety eligibles as identified in section 90.303

of title 47, Code of Federal Regulations; and

(2) begin a system of competitive bidding under section

309(j) of the Communications Act of 1934 (47 U.S.C. 309(j))

to grant new initial licenses for the use of the spectrum

described in paragraph (1).

(b) A

UCTION

ROCEEDS

.—Proceeds (including deposits and

upfront payments from successful bidders) from the competitive

bidding system described in subsection (a)(2) shall be available

Grants.

Deadline.

47 USC 1413.

47 USC 1412.

47 USC 1411.

47 USC 1404.

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126 STAT. 206 PUBLIC LAW 112–96—FEB. 22, 2012

to the Assistant Secretary to make grants in such sums as necessary

to cover relocation costs for the relocation of public safety entities

from the T-Band spectrum.

ELOCATION

.—Relocation shall be completed not later than

2 years after the date on which the system of competitive bidding

described in subsection (a)(2) is completed.

Subtitle B—Governance of Public Safety

Spectrum

SEC. 6201. SINGLE PUBLIC SAFETY WIRELESS NETWORK LICENSEE.

(a) R

EALLOCATION AND

RANT OF

ICENSE

.—Notwithstanding

any other provision of law, and subject to the provisions of this

Act, the Commission shall reallocate and grant a license to the

First Responder Network Authority for the use of the 700 MHz

D block spectrum and existing public safety broadband spectrum.

(b) T

ERM OF

ICENSE

.—

(1) I

NITIAL LICENSE

.—The license granted under subsection

(a) shall be for an initial term of 10 years from the date

of the initial issuance of the license.

(2) R

ENEWAL OF LICENSE

.—Prior to expiration of the term

of the initial license granted under subsection (a) or the expira-

tion of any subsequent renewal of such license, the First

Responder Network Authority shall submit to the Commission

an application for the renewal of such license. Such renewal

application shall demonstrate that, during the preceding license

term, the First Responder Network Authority has met the

duties and obligations set forth under this Act. A renewal

license granted under this paragraph shall be for a term of

not to exceed 10 years.

ACILITATION OF

RANSITION

.—The Commission shall take

all actions necessary to facilitate the transition of the existing

public safety broadband spectrum to the First Responder Network

Authority.

SEC. 6202. PUBLIC SAFETY BROADBAND NETWORK.

(a) E

STABLISHMENT

.—The First Responder Network Authority

shall ensure the establishment of a nationwide, interoperable public

safety broadband network.

(b) N

ETWORK

OMPONENTS

.—The nationwide public safety

broadband network shall be based on a single, national network

architecture that evolves with technological advancements and ini-

tially consists of—

(1) a core network that—

(A) consists of national and regional data centers, and

other elements and functions that may be distributed geo-

graphically, all of which shall be based on commercial

standards; and

(B) provides the connectivity between—

(i) the radio access network; and

(ii) the public Internet or the public switched net-

work, or both; and

(2) a radio access network that—

(A) consists of all cell site equipment, antennas, and

backhaul equipment, based on commercial standards, that

47 USC 1422.

47 USC 1421.

Deadline.

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126 STAT. 207 PUBLIC LAW 112–96—FEB. 22, 2012

are required to enable wireless communications with

devices using the public safety broadband spectrum; and

(B) shall be developed, constructed, managed, main-

tained, and operated taking into account the plans devel-

oped in the State, local, and tribal planning and

implementation grant program under section 6302(a).

SEC. 6203. PUBLIC SAFETY INTEROPERABILITY BOARD.

(a) E

STABLISHMENT

.—There is established within the Commis-

sion an advisory board to be known as the ‘‘Technical Advisory

Board for First Responder Interoperability’’.

(b) M

EMBERSHIP

.—

(1) I

N GENERAL

.—

(A) V

OTING MEMBERS

.—Not later than 30 days after

the date of enactment of this title, the Chairman of the

Commission shall appoint 14 voting members to the Inter-

operability Board, of which—

(i) 4 members shall be representatives of wireless

providers, of which—

(I) 2 members shall be representatives of

national wireless providers;

(II) 1 member shall be a representative of

regional wireless providers; and

(III) 1 member shall be a representative of

rural wireless providers;

(ii) 3 members shall be representatives of equip-

ment manufacturers;

(iii) 4 members shall be representatives of public

safety entities, of which—

(I) not less than 1 member shall be a rep-

resentative of management level employees of

public safety entities; and

(II) not less than 1 member shall be a rep-

resentative of employees of public safety entities;

(iv) 3 members shall be representatives of State

and local governments, chosen to reflect geographic

and population density differences across the United

States; and

(v) all members shall have specific expertise nec-

essary to developing technical requirements under this

section, such as technical expertise, public safety

communications expertise, and commercial network

experience.

(B) N

VOTING MEMBER

.—The Assistant Secretary

shall appoint 1 non-voting member to the Interoperability

Board.

(2) P

ERIOD OF APPOINTMENT

.—

(A) I

N GENERAL

.—Except as provided in subparagraph

(B), members of the Interoperability Board shall be

appointed for the life of the Interoperability Board.

(B) R

EMOVAL FOR CAUSE

.—A member of the Interoper-

ability Board may be removed for cause upon the deter-

mination of the Chairman of the Commission.

(3) V

ACANCIES

.—Any vacancy in the Interoperability Board

shall not affect the powers of the Interoperability Board, and

shall be filled in the same manner as the original appointment.

47 USC 1423.

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126 STAT. 208 PUBLIC LAW 112–96—FEB. 22, 2012

(4) C

HAIRPERSON AND VICE CHAIRPERSON

.—The Interoper-

ability Board shall select a Chairperson and Vice Chairperson

from among the members of the Interoperability Board.

(5) Q

UORUM

.—A majority of the members of the Interoper-

ability Board shall constitute a quorum.

UTIES OF THE

NTEROPERABILITY

OARD

.—

(1) D

EVELOPMENT OF TECHNICAL REQUIREMENTS

.—Not later

than 90 days after the date of enactment of this Act, the

Interoperability Board, in consultation with the NTIA, NIST,

and the Office of Emergency Communications of the Depart-

ment of Homeland Security, shall—

(A) develop recommended minimum technical require-

ments to ensure a nationwide level of interoperability for

the nationwide public safety broadband network; and

(B) submit to the Commission for review in accordance

with paragraph (3) recommended minimum technical

requirements described in subparagraph (A).

(2) C

ONSIDERATION

.—In developing recommended min-

imum technical requirements under paragraph (1), the Inter-

operability Board shall base the recommended minimum tech-

nical requirements on the commercial standards for Long Term

Evolution (LTE) service.

(3) A

PPROVAL OF RECOMMENDATIONS

.—

(A) I

N GENERAL

.—Not later than 30 days after the

date on which the Interoperability Board submits rec-

ommended minimum technical requirements under para-

graph (1)(B), the Commission shall approve the rec-

ommendations, with any revisions it deems necessary, and

transmit such recommendations to the First Responder

Network Authority.

(B) R

EVIEW

.—Any actions taken under subparagraph

(A) shall not be reviewable as a final agency action.

(d) T

RAVEL

XPENSES

.—The members of the Interoperability

Board shall be allowed travel expenses, including per diem in

lieu of subsistence, at rates authorized for employees of agencies

under subchapter I of chapter 57 of title 5, United States Code,

while away from their homes or regular places of business in

the performance of services for the Interoperability Board.

(e) E

XEMPTION

ROM

FACA.—The Federal Advisory Committee

Act (5 U.S.C. App.) shall not apply to the Interoperability Board.

(f) T

ERMINATION OF

UTHORITY

.—The Interoperability Board

shall terminate 15 days after the date on which the Commission

transmits the recommendations to the First Responder Network

Authority under subsection (c)(3)(A).

SEC. 6204. ESTABLISHMENT OF THE FIRST RESPONDER NETWORK

AUTHORITY.

(a) E

STABLISHMENT

.—There is established as an independent

authority within the NTIA the ‘‘First Responder Network Authority’’

or ‘‘FirstNet’’.

(b) B

OARD

.—

(1) I

N GENERAL

.—The First Responder Network Authority

shall be headed by a Board, which shall consist of—

(A) the Secretary of Homeland Security;

(B) the Attorney General of the United States;

Budget; and

47 USC 1424.

Deadline.

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126 STAT. 209 PUBLIC LAW 112–96—FEB. 22, 2012

(D) 12 individuals appointed by the Secretary of Com-

merce in accordance with paragraph (2).

(2) A

PPOINTMENTS

.—

(A) I

N GENERAL

.—In making appointments under para-

graph (1)(D), the Secretary of Commerce shall—

(i) appoint not fewer than 3 individuals to rep-

resent the collective interests of the States, localities,

tribes, and territories;

(ii) seek to ensure geographic and regional rep-

resentation of the United States in such appointments;

(iii) seek to ensure rural and urban representation

in such appointments; and

(iv) appoint not fewer than 3 individuals who have

served as public safety professionals.

(B) R

EQUIRED QUALIFICATIONS

.—

(i) I

N GENERAL

.—Each member appointed under

paragraph (1)(D) should meet not less than 1 of the

following criteria:

(I) P

UBLIC SAFETY EXPERIENCE

.—Knowledge

and experience in the use of Federal, State, local,

or tribal public safety or emergency response.

(II) T

ECHNICAL EXPERTISE

.—Technical exper-

tise and fluency regarding broadband communica-

tions, including public safety communications.

(III) N

ETWORK EXPERTISE

.—Expertise in

building, deploying, and operating commercial tele-

communications networks.

(IV) F

INANCIAL EXPERTISE

.—Expertise in

financing and funding telecommunications net-

works.

(ii) E

XPERTISE TO BE REPRESENTED

.—In making

appointments under paragraph (1)(D), the Secretary

of Commerce shall appoint—

(I) not fewer than 1 individual who satisfies

the requirement under subclause (II) of clause (i);

(II) not fewer than 1 individual who satisfies

the requirement under subclause (III) of clause

(i); and

(III) not fewer than 1 individual who satisfies

the requirement under subclause (IV) of clause

(i).

ITIZENSHIP

.—No individual other than a citizen

of the United States may serve as a member of the Board.

ERMS OF

PPOINTMENT

.—

(1) I

NITIAL APPOINTMENT DEADLINE

.—Members of the Board

shall be appointed not later than 180 days after the date

of the enactment of this title.

(2) T

ERMS

.—

(A) L

ENGTH

.—

(i) I

N GENERAL

.—Each member of the Board

described in subparagraphs (A) through (C) of sub-

section (b)(1) shall serve as a member of the Board

for the life of the First Responder Network Authority.

(ii) A

PPOINTED INDIVIDUALS

.—The term of office

of each individual appointed to be a member of the

Board under subsection (b)(1)(D) shall be 3 years. No

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126 STAT. 210 PUBLIC LAW 112–96—FEB. 22, 2012

member described in this clause may serve more than

2 consecutive full 3-year terms.

(B) E

XPIRATION OF TERM

.—Any member whose term

has expired may serve until such member’s successor has

taken office, or until the end of the calendar year in which

such member’s term has expired, whichever is earlier.

PPOINTMENT TO FILL VACANCY

.—Any member

appointed to fill a vacancy occurring prior to the expiration

of the term for which that member’s predecessor was

appointed shall be appointed for the remainder of the

predecessor’s term.

(D) S

TAGGERED TERMS

.—With respect to the initial

members of the Board appointed under subsection

(b)(1)(D)—

(i) 4 members shall serve for a term of 3 years;

(ii) 4 members shall serve for a term of 2 years;

and

(iii) 4 members shall serve for a term of 1 year.

(3) V

ACANCIES

.—A vacancy in the membership of the Board

shall not affect the Board’s powers, and shall be filled in the

same manner as the original member was appointed.

(d) C

HAIR

.—

(1) S

ELECTION

.—The Secretary of Commerce shall select,

from among the members of the Board appointed under sub-

section (b)(1)(D), an individual to serve for a 2-year term as

Chair of the Board.

(2) C

ONSECUTIVE TERMS

.—An individual may not serve for

more than 2 consecutive terms as Chair of the Board.

(e) M

EETINGS

.—

(1) F

REQUENCY

.—The Board shall meet—

(A) at the call of the Chair; and

(B) not less frequently than once each quarter.

(2) T

RANSPARENCY

.—Meetings of the Board, including any

committee of the Board, shall be open to the public. The Board

may, by majority vote, close any such meeting only for the

time necessary to preserve the confidentiality of commercial

or financial information that is privileged or confidential, to

discuss personnel matters, or to discuss legal matters affecting

the First Responder Network Authority, including pending or

potential litigation.

(f) Q

UORUM

.—Eight members of the Board shall constitute a

quorum, including at least 6 of the members appointed under sub-

section (b)(1)(D).

(g) C

OMPENSATION

.—

(1) I

N GENERAL

.—The members of the Board appointed

under subsection (b)(1)(D) shall be compensated at the daily

rate of basic pay for level IV of the Executive Schedule for

each day during which such members are engaged in per-

forming a function of the Board.

(2) P

ROHIBITION ON COMPENSATION

.—A member of the

Board appointed under subparagraphs (A) through (C) of sub-

section (b)(1) shall serve without additional pay, and shall

not otherwise benefit, directly or indirectly, as a result of their

service to the First Responder Network Authority, but shall

be allowed a per diem allowance for travel expenses, at rates

authorized for an employee of an agency under subchapter

I of chapter 57 of title 5, United States Code, while away

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126 STAT. 211 PUBLIC LAW 112–96—FEB. 22, 2012

from the home or regular place of business of the member

in the performance of the duties of the First Responder Network

Authority.

SEC. 6205. ADVISORY COMMITTEES OF THE FIRST RESPONDER NET-

WORK AUTHORITY.

(a) A

DVISORY

OMMITTEES

.—The First Responder Network

Authority—

(1) shall establish a standing public safety advisory com-

mittee to assist the First Responder Network Authority in

carrying out its duties and responsibilities under this subtitle;

and

(2) may establish additional standing or ad hoc committees,

panels, or councils as the First Responder Network Authority

determines are necessary.

(b) S

ELECTION OF

GENTS

, C

ONSULTANTS

AND

XPERTS

.—

(1) I

N GENERAL

.—The First Responder Network Authority

shall select parties to serve as its agents, consultants, or experts

in a fair, transparent, and objective manner, and such agents

may include a program manager to carry out certain of the

duties and responsibilities of deploying and operating the

nationwide public safety broadband network described in sub-

sections (b) and (c) of section 6206.

(2) B

INDING AND FINAL

.—If the selection of an agent,

consultant, or expert satisfies the requirements under para-

graph (1), the selection of that agent, consultant, or expert

shall be final and binding.

SEC. 6206. POWERS, DUTIES, AND RESPONSIBILITIES OF THE FIRST

RESPONDER NETWORK AUTHORITY.

(a) G

ENERAL

OWERS

.—The First Responder Network Authority

shall have the authority to do the following:

(1) To exercise, through the actions of its Board, all powers

specifically granted by the provisions of this subtitle, and such

incidental powers as shall be necessary.

(2) To hold such hearings, sit and act at such times and

places, take such testimony, and receive such evidence as the

First Responder Network Authority considers necessary to carry

out its responsibilities and duties.

(3) To obtain grants and funds from and make contracts

with individuals, private companies, organizations, institutions,

and Federal, State, regional, and local agencies.

(4) To accept, hold, administer, and utilize gifts, donations,

and bequests of property, both real and personal, for the pur-

poses of aiding or facilitating the work of the First Responder

Network Authority.

(5) To spend funds under paragraph (3) in a manner author-

ized by the Board, but only for purposes that will advance

or enhance public safety communications consistent with this

title.

(6) To take such other actions as the First Responder

Network Authority (through the Board) may from time to time

determine necessary, appropriate, or advisable to accomplish

the purposes of this title.

(b) D

UTY AND

ESPONSIBILITY TO

EPLOY AND

PERATE A

ATIONWIDE

UBLIC

AFETY

ROADBAND

ETWORK

.—

(1) I

N GENERAL

.—The First Responder Network Authority

shall hold the single public safety wireless license granted

47 USC 1426.

47 USC 1425.

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126 STAT. 212 PUBLIC LAW 112–96—FEB. 22, 2012

under section 6201 and take all actions necessary to ensure

the building, deployment, and operation of the nationwide

public safety broadband network, in consultation with Federal,

State, tribal, and local public safety entities, the Director of

NIST, the Commission, and the public safety advisory com-

mittee established in section 6205(a), including by, at a min-

imum—

(A) ensuring nationwide standards for use and access

of the network;

(B) issuing open, transparent, and competitive requests

for proposals to private sector entities for the purposes

of building, operating, and maintaining the network that

use, without materially changing, the minimum technical

requirements developed under section 6203;

maximum extent economically desirable, existing commer-

cial wireless infrastructure to speed deployment of the

network; and

(D) managing and overseeing the implementation and

execution of contracts or agreements with non-Federal enti-

ties to build, operate, and maintain the network.

(2) R

EQUIREMENTS

.—In carrying out the duties and respon-

sibilities of this subsection, including issuing requests for pro-

posals, the First Responder Network Authority shall—

(A) ensure the safety, security, and resiliency of the

network, including requirements for protecting and moni-

toring the network to protect against cyberattack;

(B) promote competition in the equipment market,

including devices for public safety communications, by

requiring that equipment for use on the network be—

(i) built to open, non-proprietary, commercially

available standards;

(ii) capable of being used by any public safety

entity and by multiple vendors across all public safety

broadband networks operating in the 700 MHz band;

and

(iii) backward-compatible with existing commercial

networks to the extent that such capabilities are nec-

essary and technically and economically reasonable;

safety answering points or their equivalent; and

(D) address special considerations for areas or regions

with unique homeland security or national security needs.

(3) R

URAL COVERAGE

.—In carrying out the duties and

responsibilities of this subsection, including issuing requests

for proposals, the nationwide, interoperable public safety

broadband network, consistent with the license granted under

section 6201, shall require deployment phases with substantial

rural coverage milestones as part of each phase of the construc-

tion and deployment of the network. To the maximum extent

economically desirable, such proposals shall include partner-

ships with existing commercial mobile providers to utilize cost-

effective opportunities to speed deployment in rural areas.

(4) E

XECUTION OF AUTHORITY

.—In carrying out the duties

and responsibilities of this subsection, the First Responder

Network Authority may—

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126 STAT. 213 PUBLIC LAW 112–96—FEB. 22, 2012

(A) obtain grants from and make contracts with

individuals, private companies, and Federal, State,

regional, and local agencies;

(B) hire or accept voluntary services of consultants,

experts, advisory boards, and panels to aid the First

Responder Network Authority in carrying out such duties

and responsibilities;

(i) network capacity licensed to the First

Responder Network Authority; and

(ii) network infrastructure constructed, owned, or

operated by the First Responder Network Authority;

and

(D) take such other actions as may be necessary to

accomplish the purposes set forth in this subsection.

THER

PECIFIC

UTIES AND

ESPONSIBILITIES

.—

(1) E

STABLISHMENT OF NETWORK POLICIES

.—In carrying out

the requirements under subsection (b), the First Responder

Network Authority shall develop—

(A) requests for proposals with appropriate—

(i) timetables for construction, including by taking

into consideration the time needed to build out to

rural areas and the advantages offered through part-

nerships with existing commercial providers under

paragraph (3);

(ii) coverage areas, including coverage in rural and

nonurban areas;

(iii) service levels;

(iv) performance criteria; and

(v) other similar matters for the construction and

deployment of such network;

(B) the technical and operational requirements of the

network;

management and operation of such network;

(D) terms of service for the use of such network,

including billing practices; and

(E) ongoing compliance review and monitoring of the—

(i) management and operation of such network;

(ii) practices and procedures of the entities oper-

ating on and the personnel using such network; and

(iii) necessary training needs of network operators

and users.

(2) S

TATE AND LOCAL PLANNING

.—

(A) R

EQUIRED CONSULTATION

.—In developing requests

for proposals and otherwise carrying out its responsibilities

under this Act, the First Responder Network Authority

shall consult with regional, State, tribal, and local jurisdic-

tions regarding the distribution and expenditure of any

amounts required to carry out the policies established

under paragraph (1), including with regard to the—

(i) construction of a core network and any radio

access network build out;

(ii) placement of towers;

(iii) coverage areas of the network, whether at

the regional, State, tribal, or local level;

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126 STAT. 214 PUBLIC LAW 112–96—FEB. 22, 2012

(iv) adequacy of hardening, security, reliability,

and resiliency requirements;

(v) assignment of priority to local users;

(vi) assignment of priority and selection of entities

seeking access to or use of the nationwide public safety

interoperable broadband network established under

subsection (b); and

(vii) training needs of local users.

(B) M

ETHOD OF CONSULTATION

.—The consultation

required under subparagraph (A) shall occur between the

First Responder Network Authority and the single officer

or governmental body designated under section 6302(d).

(3) L

EVERAGING EXISTING INFRASTRUCTURE

.—In carrying

out the requirement under subsection (b), the First Responder

Network Authority shall enter into agreements to utilize, to

the maximum extent economically desirable, existing—

(A) commercial or other communications infrastruc-

ture; and

(B) Federal, State, tribal, or local infrastructure.

(4) M

AINTENANCE AND UPGRADES

.—The First Responder

Network Authority shall ensure the maintenance, operation,

and improvement of the nationwide public safety broadband

network, including by ensuring that the First Responder Net-

work Authority updates and revises any policies established

under paragraph (1) to take into account new and evolving

technologies.

(5) R

OAMING AGREEMENTS

.—The First Responder Network

Authority shall negotiate and enter into, as it determines appro-

priate, roaming agreements with commercial network providers

to allow the nationwide public safety broadband network to

roam onto commercial networks and gain prioritization of public

safety communications over such networks in times of an emer-

gency.

(6) N

ETWORK INFRASTRUCTURE AND DEVICE CRITERIA

.—The

Director of NIST, in consultation with the First Responder

Network Authority and the Commission, shall ensure the

development of a list of certified devices and components

meeting appropriate protocols and standards for public safety

entities and commercial vendors to adhere to, if such entities

or vendors seek to have access to, use of, or compatibility

with the nationwide public safety broadband network.

(7) R

EPRESENTATION BEFORE STANDARD SETTING ENTITIES

.—

The First Responder Network Authority, in consultation with

the Director of NIST, the Commission, and the public safety

advisory committee established under section 6205(a), shall

represent the interests of public safety users of the nationwide

public safety broadband network before any proceeding, nego-

tiation, or other matter in which a standards organization,

standards body, standards development organization, or any

other recognized standards-setting entity addresses the develop-

ment of standards relating to interoperability.

(8) P

ROHIBITION ON NEGOTIATION WITH FOREIGN GOVERN

MENTS

.—The First Responder Network Authority shall not have

the authority to negotiate or enter into any agreements with

a foreign government on behalf of the United States.

Lists.

Contracts.

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126 STAT. 215 PUBLIC LAW 112–96—FEB. 22, 2012

(d) E

XEMPTION

ROM

ERTAIN

AWS

.—Any action taken or

decisions made by the First Responder Network Authority shall

be exempt from the requirements of—

(1) section 3506 of title 44, United States Code (commonly

referred to as the Paperwork Reduction Act);

(2) chapter 5 of title 5, United States Code (commonly

referred to as the Administrative Procedures Act); and

(3) chapter 6 of title 5, United States Code (commonly

referred to as the Regulatory Flexibility Act).

(e) N

ETWORK

ONSTRUCTION

UND

.—

(1) E

STABLISHMENT

.—There is established in the Treasury

of the United States a fund to be known as the ‘‘Network

Construction Fund’’.

(2) U

SE OF FUND

.—Amounts deposited into the Network

Construction Fund shall be used by the—

(A) First Responder Network Authority to carry out

this section, except for administrative expenses; and

(B) NTIA to make grants to States under section

6302(e)(3)(C)(iii)(I).

(f) T

ERMINATION OF

UTHORITY

.—The authority of the First

Responder Network Authority shall terminate on the date that

is 15 years after the date of enactment of this title.

(g) GAO R

EPORT

.—Not later than 10 years after the date of

the enactment of this Act, the Comptroller General of the United

States shall submit to Congress a report on what action Congress

should take regarding the 15-year sunset of authority under sub-

section (f).

SEC. 6207. INITIAL FUNDING FOR THE FIRST RESPONDER NETWORK

AUTHORITY.

(a) B

ORROWING

UTHORITY

.—Prior to the deposit of proceeds

into the Public Safety Trust Fund from the incentive auctions

to be carried out under section 309(j)(8)(G) of the Communications

Act of 1934 or the auction of spectrum pursuant to section 6401,

the NTIA may borrow from the Treasury such sums as may be

necessary, but not to exceed $2,000,000,000, to implement this

subtitle. The NTIA shall reimburse the Treasury, without interest,

from funds deposited into the Public Safety Trust Fund.

(b) P

ROHIBITION

.—

(1) I

N GENERAL

.—Administrative expenses of the First

Responder Network Authority may not exceed $100,000,000

during the 10-year period beginning on the date of enactment

of this title.

(2) D

EFINITION

.—For purposes of this subsection, the term

‘‘administrative expenses’’ does not include the costs incurred

by the First Responder Network Authority for oversight and

audits to protect against waste, fraud, and abuse.

SEC. 6208. PERMANENT SELF-FUNDING; DUTY TO ASSESS AND COL-

LECT FEES FOR NETWORK USE.

(a) I

ENERAL

.—Notwithstanding section 337 of the Commu-

nications Act of 1934 (47 U.S.C. 337), the First Responder Network

Authority is authorized to assess and collect the following fees:

(1) N

ETWORK USER FEE

.—A user or subscription fee from

each entity, including any public safety entity or secondary

user, that seeks access to or use of the nationwide public

safety broadband network.

(2) L

EASE FEES RELATED TO NETWORK CAPACITY

.—

47 USC 1428.

Time period.

Reimbursement.

47 USC 1427.

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126 STAT. 216 PUBLIC LAW 112–96—FEB. 22, 2012

(A) I

N GENERAL

.—A fee from any entity that seeks

to enter into a covered leasing agreement.

(B) C

OVERED LEASING AGREEMENT

.—For purposes of

subparagraph (A), a ‘‘covered leasing agreement’’ means

a written agreement resulting from a public-private

arrangement to construct, manage, and operate the nation-

wide public safety broadband network between the First

Responder Network Authority and secondary user to

permit—

(i) access to network capacity on a secondary basis

for non-public safety services; and

(ii) the spectrum allocated to such entity to be

used for commercial transmissions along the dark fiber

of the long-haul network of such entity.

(3) L

EASE FEES RELATED TO NETWORK EQUIPMENT AND

INFRASTRUCTURE

.—A fee from any entity that seeks access to

or use of any equipment or infrastructure, including antennas

or towers, constructed or otherwise owned by the First

Responder Network Authority resulting from a public-private

arrangement to construct, manage, and operate the nationwide

public safety broadband network.

(b) E

STABLISHMENT OF

MOUNTS

; P

ERMANENT

ELF

FUNDING

.—The total amount of the fees assessed for each fiscal

year pursuant to this section shall be sufficient, and shall not

exceed the amount necessary, to recoup the total expenses of the

First Responder Network Authority in carrying out its duties and

responsibilities described under this subtitle for the fiscal year

involved.

NNUAL

PPROVAL

.—The NTIA shall review the fees

assessed under this section on an annual basis, and such fees

may only be assessed if approved by the NTIA.

(d) R

EQUIRED

EINVESTMENT OF

UNDS

.—The First Responder

Network Authority shall reinvest amounts received from the assess-

ment of fees under this section in the nationwide public safety

interoperable broadband network by using such funds only for

constructing, maintaining, operating, or improving the network.

SEC. 6209. AUDIT AND REPORT.

(a) A

UDIT

.—

(1) I

N GENERAL

.—The Secretary of Commerce shall enter

into a contract with an independent auditor to conduct an

audit, on an annual basis, of the First Responder Network

Authority in accordance with general accounting principles and

procedures applicable to commercial corporate transactions.

Each audit conducted under this paragraph shall be made

available to the appropriate committees of Congress.

(2) L

OCATION

.—Any audit conducted under paragraph (1)

shall be conducted at the place or places where accounts of

the First Responder Network Authority are normally kept.

(3) A

CCESS TO FIRST RESPONDER NETWORK AUTHORITY

BOOKS AND DOCUMENTS

.—

(A) I

N GENERAL

.—For purposes of an audit conducted

under paragraph (1), the representatives of the independent

auditor shall—

(i) have access to all books, accounts, records,

reports, files, and all other papers, things, or property

belonging to or in use by the First Responder Network

47 USC 1429.

Review.

Definition.

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126 STAT. 217 PUBLIC LAW 112–96—FEB. 22, 2012

Authority that pertain to the financial transactions

of the First Responder Network Authority and are

necessary to facilitate the audit; and

(ii) be afforded full facilities for verifying trans-

actions with the balances or securities held by deposi-

tories, fiscal agents, and custodians.

(B) R

EQUIREMENT

.—All books, accounts, records,

reports, files, papers, and property of the First Responder

Network Authority shall remain in the possession and cus-

tody of the First Responder Network Authority.

(b) R

EPORT

.—

(1) I

N GENERAL

.—The independent auditor selected to con-

duct an audit under this section shall submit a report of each

audit conducted under subsection (a) to—

(A) the appropriate committees of Congress;

(B) the President; and

(2) C

ONTENTS

.—Each report submitted under paragraph

(1) shall contain—

(A) such comments and information as the independent

auditor determines necessary to inform Congress of the

financial operations and condition of the First Responder

Network Authority;

(B) any recommendations of the independent auditor

relating to the financial operations and condition of the

First Responder Network Authority; and

financial transaction or undertaking of the First Responder

Network Authority that was observed during the course

of the audit, which, in the opinion of the independent

auditor, has been carried on or made without the authority

of law.

SEC. 6210. ANNUAL REPORT TO CONGRESS.

(a) I

ENERAL

.—Not later than 1 year after the date of enact-

ment of this Act, and each year thereafter, the First Responder

Network Authority shall submit an annual report covering the

preceding fiscal year to the appropriate committees of Congress.

(b) R

EQUIRED

ONTENT

.—The report required under subsection

(a) shall include—

(1) a comprehensive and detailed report of the operations,

activities, financial condition, and accomplishments of the First

Responder Network Authority under this section; and

(2) such recommendations or proposals for legislative or

administrative action as the First Responder Network

Authority deems appropriate.

VAILABILITY TO

ESTIFY

.—The members of the Board and

employees of the First Responder Network Authority shall be avail-

able to testify before the appropriate committees of the Congress

with respect to—

(1) the report required under subsection (a);

(2) the report of any audit conducted under section 6210;

(3) any other matter which such committees may determine

appropriate.

47 USC 1430.

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126 STAT. 218 PUBLIC LAW 112–96—FEB. 22, 2012

SEC. 6211. PUBLIC SAFETY ROAMING AND PRIORITY ACCESS.

The Commission may adopt rules, if necessary in the public

interest, to improve the ability of public safety networks to roam

onto commercial networks and to gain priority access to commercial

networks in an emergency if—

(1) the public safety entity equipment is technically compat-

ible with the commercial network;

(2) the commercial network is reasonably compensated;

and

(3) such access does not preempt or otherwise terminate

or degrade all existing voice conversations or data sessions.

SEC. 6212. PROHIBITION ON DIRECT OFFERING OF COMMERCIAL TELE-

COMMUNICATIONS SERVICE DIRECTLY TO CONSUMERS.

(a) I

ENERAL

.—The First Responder Network Authority shall

not offer, provide, or market commercial telecommunications or

information services directly to consumers.

(b) R

ULE OF

ONSTRUCTION

.—Nothing in this section shall be

construed to prohibit the First Responder Network Authority and

a secondary user from entering into a covered leasing agreement

pursuant to section 6208(a)(2)(B). Nothing in this section shall

be construed to limit the First Responder Network Authority from

collecting lease fees related to network equipment and infrastruc-

ture pursuant to section 6208(a)(3).

SEC. 6213. PROVISION OF TECHNICAL ASSISTANCE.

The Commission may provide technical assistance to the First

Responder Network Authority and may take any action necessary

to assist the First Responder Network Authority in effectuating

its duties and responsibilities under this subtitle.

Subtitle C—Public Safety Commitments

SEC. 6301. STATE AND LOCAL IMPLEMENTATION FUND.

(a) E

STABLISHMENT

.—There is established in the Treasury of

the United States a fund to be known as the State and Local

Implementation Fund.

(b) A

MOUNTS

VAILABLE FOR

TATE AND

OCAL

MPLEMENTA

TION

RANT

ROGRAM

.—Any amounts borrowed under subsection

(c)(1) and any amounts in the State and Local Implementation

Fund that are not necessary to reimburse the general fund of

the Treasury for such borrowed amounts shall be available to the

Assistant Secretary to implement section 6302.

ORROWING

UTHORITY

.—

(1) I

N GENERAL

.—Prior to the end of fiscal year 2022,

the Assistant Secretary may borrow from the general fund

of the Treasury such sums as may be necessary, but not to

exceed $135,000,000, to implement section 6302.

(2) R

EIMBURSEMENT

.—The Assistant Secretary shall

reimburse the general fund of the Treasury, without interest,

for any amounts borrowed under paragraph (1) as funds are

deposited into the State and Local Implementation Fund.

(d) T

RANSFER OF

NUSED

UNDS

.—If there is a balance

remaining in the State and Local Implementation Fund on Sep-

tember 30, 2022, the Secretary of the Treasury shall transfer such

balance to the general fund of the Treasury, where such balance

shall be dedicated for the sole purpose of deficit reduction.

47 USC 1441.

47 USC 1433.

47 USC 1432.

47 USC 1431.

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126 STAT. 219 PUBLIC LAW 112–96—FEB. 22, 2012

SEC. 6302. STATE AND LOCAL IMPLEMENTATION.

(a) E

STABLISHMENT OF

TATE AND

OCAL

MPLEMENTATION

RANT

ROGRAM

.—The Assistant Secretary, in consultation with

the First Responder Network Authority, shall take such action

as is necessary to establish a grant program to make grants to

States to assist State, regional, tribal, and local jurisdictions to

identify, plan, and implement the most efficient and effective way

for such jurisdictions to utilize and integrate the infrastructure,

equipment, and other architecture associated with the nationwide

public safety broadband network to satisfy the wireless communica-

tions and data services needs of that jurisdiction, including with

regards to coverage, siting, and other needs.

(b) M

ATCHING

EQUIREMENTS

; F

EDERAL

HARE

.—

(1) I

N GENERAL

.—The Federal share of the cost of any

activity carried out using a grant under this section may not

exceed 80 percent of the eligible costs of carrying out that

activity, as determined by the Assistant Secretary, in consulta-

tion with the First Responder Network Authority.

(2) W

AIVER

.—The Assistant Secretary may waive, in whole

or in part, the requirements of paragraph (1) for good cause

shown if the Assistant Secretary determines that such a waiver

is in the public interest.

ROGRAMMATIC

EQUIREMENTS

.—Not later than 6 months

after the date of enactment of this Act, the Assistant Secretary,

in consultation with the First Responder Network Authority, shall

establish requirements relating to the grant program to be carried

out under this section, including the following:

(1) Defining eligible costs for purposes of subsection (b)(1).

(2) Determining the scope of eligible activities for grant

funding under this section.

(3) Prioritizing grants for activities that ensure coverage

in rural as well as urban areas.

(d) C

ERTIFICATION AND

ESIGNATION OF

FFICER OR

OVERN

MENTAL

ODY

.—In carrying out the grant program established

under this section, the Assistant Secretary shall require each State

to certify in its application for grant funds that the State has

designated a single officer or governmental body to serve as the

coordinator of implementation of the grant funds.

(e) S

TATE

ETWORK

.—

(1) N

OTICE

.—Upon the completion of the request for pro-

posal process conducted by the First Responder Network

Authority for the construction, operation, maintenance, and

improvement of the nationwide public safety broadband net-

work, the First Responder Network Authority shall provide

to the Governor of each State, or his designee—

(A) notice of the completion of the request for proposal

process;

(B) details of the proposed plan for buildout of the

nationwide, interoperable broadband network in such

State; and

the NTIA.

(2) S

TATE DECISION

.—Not later than 90 days after the

date on which the Governor of a State receives notice under

paragraph (1), the Governor shall choose whether to—

Deadline.

47 USC 1442.

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126 STAT. 220 PUBLIC LAW 112–96—FEB. 22, 2012

(A) participate in the deployment of the nationwide,

interoperable broadband network as proposed by the First

Responder Network Authority; or

(B) conduct its own deployment of a radio access net-

work in such State.

(3) P

ROCESS

.—

(A) I

N GENERAL

.—Upon making a decision to opt-out

under paragraph (2)(B), the Governor shall notify the First

Responder Network Authority, the NTIA, and the Commis-

sion of such decision.

(B) S

TATE REQUEST FOR PROPOSALS

.—Not later than

180 days after the date on which a Governor provides

notice under subparagraph (A), the Governor shall develop

and complete requests for proposals for the construction,

maintenance, and operation of the radio access network

within the State.

UBMISSION AND APPROVAL OF ALTERNATIVE PLAN

.—

(i) I

N GENERAL

.—The State shall submit an alter-

native plan for the construction, maintenance, oper-

ation, and improvements of the radio access network

within the State to the Commission, and such plan

shall demonstrate—

(I) that the State will be in compliance with

the minimum technical interoperability require-

ments developed under section 6203; and

(II) interoperability with the nationwide public

safety broadband network.

(ii) C

OMMISSION APPROVAL OR DISAPPROVAL

.—Upon

submission of a State plan under clause (i), the

Commission shall either approve or disapprove the

plan.

(iii) A

PPROVAL

.—If the Commission approves a

plan under this subparagraph, the State—

(I) may apply to the NTIA for a grant to

construct the radio access network within the State

that includes the showing described in subpara-

graph (D); and

(II) shall apply to the NTIA to lease spectrum

capacity from the First Responder Network

Authority.

(iv) D

ISAPPROVAL

.—If the Commission disapproves

a plan under this subparagraph, the construction,

maintenance, operation, and improvements of the net-

work within the State shall proceed in accordance with

the plan proposed by the First Responder Network

Authority.

(D) F

UNDING REQUIREMENTS

.—In order to obtain grant

funds and spectrum capacity leasing rights under subpara-

graph (C)(iii), a State shall demonstrate—

(i) that the State has—

(I) the technical capabilities to operate, and

the funding to support, the State radio access net-

work;

(II) has the ability to maintain ongoing inter-

operability with the nationwide public safety

broadband network; and

Deadline.

Notification.

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126 STAT. 221 PUBLIC LAW 112–96—FEB. 22, 2012

(III) the ability to complete the project within

specified comparable timelines specific to the

State;

(ii) the cost-effectiveness of the State plan sub-

mitted under subparagraph (C)(i); and

(iii) comparable security, coverage, and quality of

service to that of the nationwide public safety

broadband network.

(f) U

SER

EES

.—If a State chooses to build its own radio access

network, the State shall pay any user fees associated with State

use of elements of the core network.

(g) P

ROHIBITION

.—

(1) I

N GENERAL

.—A State that chooses to build its own

radio access network shall not provide commercial service to

consumers or offer wholesale leasing capacity of the network

within the State except directly through public-private partner-

ships for construction, maintenance, operation, and improve-

ment of the network within the State.

(2) R

ULE OF CONSTRUCTION

.—Nothing in this subsection

shall be construed to prohibit the State and a secondary user

from entering into a covered leasing agreement. Any revenue

gained by the State from such a leasing agreement shall be

used only for constructing, maintaining, operating, or improving

the radio access network of the State.

(h) J

UDICIAL

EVIEW

.—

(1) I

N GENERAL

.—The United States District Court for the

District of Columbia shall have exclusive jurisdiction to review

a decision of the Commission made under subsection

(e)(3)(C)(iv).

(2) S

TANDARD OF REVIEW

.—The court shall affirm the deci-

sion of the Commission unless—

(A) the decision was procured by corruption, fraud,

or undue means;

(B) there was actual partiality or corruption in the

Commission; or

refusing to hear evidence pertinent and material to the

decision or of any other misbehavior by which the rights

of any party have been prejudiced.

SEC. 6303. PUBLIC SAFETY WIRELESS COMMUNICATIONS RESEARCH

AND DEVELOPMENT.

(a) NIST D

IRECTED

ESEARCH AND

EVELOPMENT

ROGRAM

.—

From amounts made available from the Public Safety Trust Fund,

the Director of NIST, in consultation with the Commission, the

Secretary of Homeland Security, and the National Institute of Jus-

tice of the Department of Justice, as appropriate, shall conduct

research and assist with the development of standards, technologies,

and applications to advance wireless public safety communications.

(b) R

EQUIRED

CTIVITIES

.—In carrying out the requirement

under subsection (a), the Director of NIST, in consultation with

the First Responder Network Authority and the public safety

advisory committee established under section 6205(a), shall—

(1) document public safety wireless communications tech-

nical requirements;

47 USC 1443.

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126 STAT. 222 PUBLIC LAW 112–96—FEB. 22, 2012

(2) accelerate the development of the capability for commu-

nications between currently deployed public safety narrowband

systems and the nationwide public safety broadband network;

(3) establish a research plan, and direct research, that

addresses the wireless communications needs of public safety

entities beyond what can be provided by the current generation

of broadband technology;

(4) accelerate the development of mission critical voice,

including device-to-device ‘‘talkaround’’ capability over

broadband networks, public safety prioritization, authentication

capabilities, and standard application programing interfaces

for the nationwide public safety broadband network, if nec-

essary and practical;

(5) accelerate the development of communications tech-

nology and equipment that can facilitate the eventual migration

of public safety narrowband communications to the nationwide

public safety broadband network; and

(6) convene working groups of relevant government and

commercial parties to achieve the requirements in paragraphs

(1) through (5).

Subtitle D—Spectrum Auction Authority

SEC. 6401. DEADLINES FOR AUCTION OF CERTAIN SPECTRUM.

(a) C

LEARING

ERTAIN

EDERAL

PECTRUM

.—

(1) I

N GENERAL

.—The President shall—

(A) not later than 3 years after the date of the enact-

ment of this Act, begin the process of withdrawing or

modifying the assignment to a Federal Government station

of the electromagnetic spectrum described in paragraph

(2); and

(B) not later than 30 days after completing the with-

drawal or modification, notify the Commission that the

withdrawal or modification is complete.

(2) S

PECTRUM DESCRIBED

.—The electromagnetic spectrum

described in this paragraph is the 15 megahertz of spectrum

between 1675 megahertz and 1710 megahertz identified under

paragraph (3).

(3) I

DENTIFICATION BY SECRETARY OF COMMERCE

.—Not later

than 1 year after the date of the enactment of this Act, the

Secretary of Commerce shall submit to the President a report

identifying 15 megahertz of spectrum between 1675 megahertz

and 1710 megahertz for reallocation from Federal use to non-

Federal use.

(b) R

EALLOCATION AND

UCTION

.—

(1) I

N GENERAL

.—Notwithstanding paragraph (15)(A) of sec-

tion 309(j) of the Communications Act of 1934 (47 U.S.C. 309(j)),

not later than 3 years after the date of the enactment of

this Act, the Commission shall, except as provided in paragraph

(4)—

(A) allocate the spectrum described in paragraph (2)

for commercial use; and

(B) through a system of competitive bidding under

such section, grant new initial licenses for the use of such

spectrum, subject to flexible-use service rules.

Reports.

Notification.

President.

47 USC 1451.

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126 STAT. 223 PUBLIC LAW 112–96—FEB. 22, 2012

(2) S

PECTRUM DESCRIBED

.—The spectrum described in this

paragraph is the following:

(A) The frequencies between 1915 megahertz and 1920

megahertz.

(B) The frequencies between 1995 megahertz and 2000

megahertz.

(D) The frequencies between 2155 megahertz and 2180

megahertz.

(E) Fifteen megahertz of contiguous spectrum to be

identified by the Commission.

(3) P

ROCEEDS TO COVER 110 PERCENT OF FEDERAL RELOCA

TION OR SHARING COSTS

.—Nothing in paragraph (1) shall be

construed to relieve the Commission from the requirements

of section 309(j)(16)(B) of the Communications Act of 1934

(47 U.S.C. 309(j)(16)(B)).

(4) D

ETERMINATION BY COMMISSION

.—If the Commission

determines that the band of frequencies described in paragraph

(2)(A) or the band of frequencies described in paragraph (2)(B)

cannot be used without causing harmful interference to

commercial mobile service licensees in the frequencies between

1930 megahertz and 1995 megahertz, the Commission may

not—

(A) allocate such band for commercial use under para-

graph (1)(A); or

(B) grant licenses under paragraph (1)(B) for the use

of such band.

UCTION

ROCEEDS

.—Section 309(j)(8) of the Communica-

tions Act of 1934 (47 U.S.C. 309(j)(8)) is amended—

(1) in subparagraph (A), by striking ‘‘(D), and (E),’’ and

inserting ‘‘(D), (E), (F), and (G),’’;

(2) in subparagraph (C)(i), by striking ‘‘subparagraph

(E)(ii)’’ and inserting ‘‘subparagraphs (D)(ii), (E)(ii), (F), and

(G)’’;

(3) in subparagraph (D)—

(A) by striking the heading and inserting ‘‘P

ROCEEDS

FROM REALLOCATED FEDERAL SPECTRUM

.—’’;

(B) by striking ‘‘Cash’’ and inserting the following:

‘‘(i) I

N GENERAL

.—Except as provided in clause

(ii), cash’’; and

‘‘(ii) C

ERTAIN OTHER PROCEEDS

.—Notwithstanding

subparagraph (A) and except as provided in subpara-

graph (B), in the case of proceeds (including deposits

and upfront payments from successful bidders) attrib-

utable to the auction of eligible frequencies described

in paragraph (2) of section 113(g) of the National Tele-

communications and Information Administration

Organization Act that are required to be auctioned

by section 6401(b)(1)(B) of the Middle Class Tax Relief

and Job Creation Act of 2012, such portion of such

proceeds as is necessary to cover the relocation or

sharing costs (as defined in paragraph (3) of such sec-

tion 113(g)) of Federal entities relocated from such

eligible frequencies shall be deposited in the Spectrum

Relocation Fund. The remainder of such proceeds shall

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126 STAT. 224 PUBLIC LAW 112–96—FEB. 22, 2012

be deposited in the Public Safety Trust Fund estab-

lished by section 6413(a)(1) of the Middle Class Tax

Relief and Job Creation Act of 2012.’’; and

(4) by adding at the end the following:

‘‘(F) C

ERTAIN PROCEEDS DESIGNATED FOR PUBLIC SAFETY

TRUST FUND

.—Notwithstanding subparagraph (A) and

except as provided in subparagraphs (B) and (D)(ii), 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

6401(b)(1)(B) of the Middle Class Tax Relief and Job Cre-

ation Act of 2012 shall be deposited in the Public Safety

Trust Fund established by section 6413(a)(1) of such Act.’’.

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) I

NCENTIVE AUCTIONS

.—

‘‘(i) I

N 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 success-

ful bidders) from the use of a competitive bidding

system under this subsection.

‘‘(ii) L

IMITATIONS

.—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 partici-

pate in the reverse auction.

‘‘(iii) T

REATMENT OF REVENUES

.—Notwithstanding

subparagraph (A) and except as provided in subpara-

graph (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 depos-

ited 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 depos-

ited in the TV Broadcaster Relocation Fund estab-

lished by subsection (d)(1) of such section.

‘‘(II) All other proceeds shall be deposited—

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126 STAT. 225 PUBLIC LAW 112–96—FEB. 22, 2012

‘‘(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) C

ONGRESSIONAL 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 calcu-

lating the amounts that will be shared with licensees

under clause (i).

‘‘(v) D

EFINITION

.—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.’’.

SEC. 6403. SPECIAL REQUIREMENTS FOR INCENTIVE AUCTION OF

BROADCAST TV SPECTRUM.

(a) R

EVERSE

UCTION TO

DENTIFY

NCENTIVE

MOUNT

.—

(1) I

N GENERAL

.—The Commission shall conduct a reverse

auction to determine the amount of compensation that each

broadcast television licensee would accept in return for volun-

tarily relinquishing some or all of its broadcast television spec-

trum usage rights in order to make spectrum available for

assignment through a system of competitive bidding under

subparagraph (G) of section 309(j)(8) of the Communications

Act of 1934, as added by section 6402.

(2) E

LIGIBLE RELINQUISHMENTS

.—A relinquishment of

usage rights for purposes of paragraph (1) shall include the

following:

(A) Relinquishing all usage rights with respect to a

particular television channel without receiving in return

any usage rights with respect to another television channel.

(B) Relinquishing all usage rights with respect to an

ultra high frequency television channel in return for

receiving usage rights with respect to a very high frequency

television channel.

television channel with another licensee.

(3) C

ONFIDENTIALITY

.—The Commission shall take all

reasonable steps necessary to protect the confidentiality of

Commission-held data of a licensee participating in the reverse

auction under paragraph (1), including withholding the identity

of such licensee until the reassignments and reallocations (if

any) under subsection (b)(1)(B) become effective, as described

in subsection (f)(2).

Determination.

47 USC 1452.

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126 STAT. 226 PUBLIC LAW 112–96—FEB. 22, 2012

(4) P

ROTECTION OF CARRIAGE RIGHTS OF LICENSEES SHARING

A CHANNEL

.—A broadcast television station that voluntarily

relinquishes spectrum usage rights under this subsection in

order to share a television channel and that possessed carriage

rights under section 338, 614, or 615 of the Communications

Act of 1934 (47 U.S.C. 338; 534; 535) on November 30, 2010,

shall have, at its shared location, the carriage rights under

such section that would apply to such station at such location

if it were not sharing a channel.

(b) R

EORGANIZATION OF

ROADCAST

TV S

PECTRUM

.—

(1) I

N GENERAL

.—For purposes of making available spec-

trum to carry out the forward auction under subsection (c)(1),

the Commission—

(A) shall evaluate the broadcast television spectrum

(including spectrum made available through the reverse

auction under subsection (a)(1)); and

(B) may, subject to international coordination along

the border with Mexico and Canada—

(i) make such reassignments of television channels

as the Commission considers appropriate; and

(ii) reallocate such portions of such spectrum as

the Commission determines are available for realloca-

tion.

(2) F

ACTORS FOR CONSIDERATION

.—In making any reassign-

ments or reallocations under paragraph (1)(B), the Commission

shall make all reasonable efforts to preserve, as of the date

of the enactment of this Act, the coverage area and population

served of each broadcast television licensee, as determined

using the methodology described in OET Bulletin 69 of the

Office of Engineering and Technology of the Commission.

(3) N

O INVOLUNTARY RELOCATION FROM UHF TO VHF

.—In

making any reassignments under paragraph (1)(B)(i), the

Commission may not involuntarily reassign a broadcast tele-

vision licensee—

(A) from an ultra high frequency television channel

to a very high frequency television channel; or

(B) from a television channel between the frequencies

from 174 megahertz to 216 megahertz to a television

channel between the frequencies from 54 megahertz to

88 megahertz.

(4) P

AYMENT OF RELOCATION COSTS

.—

(A) I

N GENERAL

.—Except as provided in subparagraph

(B), from amounts made available under subsection (d)(2),

the Commission shall reimburse costs reasonably incurred

by—

(i) a broadcast television licensee that was

reassigned under paragraph (1)(B)(i) from one ultra

high frequency television channel to a different ultra

high frequency television channel, from one very high

frequency television channel to a different very high

frequency television channel, or, in accordance with

subsection (g)(1)(B), from a very high frequency tele-

vision channel to an ultra high frequency television

channel, in order for the licensee to relocate its tele-

vision service from one channel to the other;

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126 STAT. 227 PUBLIC LAW 112–96—FEB. 22, 2012

(ii) a multichannel video programming distributor

in order to continue to carry the signal of a broadcast

television licensee that—

(I) is described in clause (i);

(II) voluntarily relinquishes spectrum usage

rights under subsection (a) with respect to an ultra

high frequency television channel in return for

receiving usage rights with respect to a very high

frequency television channel; or

(III) voluntarily relinquishes spectrum usage

rights under subsection (a) to share a television

channel with another licensee; or

(iii) a channel 37 incumbent user, in order to

relocate to other suitable spectrum, provided that all

such users can be relocated and that the total reloca-

tion costs of such users do not exceed $300,000,000.

For the purpose of this section, the spectrum made

available through relocation of channel 37 incumbent

users shall be deemed as spectrum reclaimed through

a reverse auction under section 6403(a).

(B) R

EGULATORY RELIEF

.—In lieu of reimbursement for

relocation costs under subparagraph (A), a broadcast tele-

vision licensee may accept, and the Commission may grant

as it considers appropriate, a waiver of the service rules

of the Commission to permit the licensee, subject to inter-

ference protections, to make flexible use of the spectrum

assigned to the licensee to provide services other than

broadcast television services. Such waiver shall only remain

in effect while the licensee provides at least 1 broadcast

television program stream on such spectrum at no charge

to the public.

IMITATION

.—The Commission may not make

reimbursements under subparagraph (A) for lost revenues.

(D) D

EADLINE

.—The Commission shall make all

reimbursements required by subparagraph (A) not later

than the date that is 3 years after the completion of the

forward auction under subsection (c)(1).

(5) L

POWER TELEVISION USAGE RIGHTS

.—Nothing in this

subsection shall be construed to alter the spectrum usage rights

of low-power television stations.

ORWARD

UCTION

.—

(1) A

UCTION REQUIRED

.—The Commission shall conduct a

forward auction in which—

(A) the Commission assigns licenses for the use of

the spectrum that the Commission reallocates under sub-

section (b)(1)(B)(ii); and

(B) the amount of the proceeds that the Commission

shares under clause (i) of section 309(j)(8)(G) of the Commu-

nications Act of 1934 with each licensee whose bid the

Commission accepts in the reverse auction under subsection

(a)(1) is not less than the amount of such bid.

(2) M

INIMUM PROCEEDS

.—

(A) I

N GENERAL

.—If the amount of the proceeds from

the forward auction under paragraph (1) is not greater

than the sum described in subparagraph (B), no licenses

shall be assigned through such forward auction, no re-

assignments or reallocations under subsection (b)(1)(B)

Waiver.

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126 STAT. 228 PUBLIC LAW 112–96—FEB. 22, 2012

shall become effective, and the Commission may not revoke

any spectrum usage rights by reason of a bid that the

Commission accepts in the reverse auction under subsection

(a)(1).

(B) S

UM DESCRIBED

.—The sum described in this

subparagraph is the sum of—

(i) the total amount of compensation that the

Commission must pay successful bidders in the reverse

auction under subsection (a)(1);

(ii) the costs of conducting such forward auction

that the salaries and expenses account of the Commis-

sion is required to retain under section 309(j)(8)(B)

of the Communications Act of 1934 (47 U.S.C.

309(j)(8)(B)); and

(iii) the estimated costs for which the Commission

is required to make reimbursements under subsection

(b)(4)(A).

DMINISTRATIVE COSTS

.—The amount of the pro-

ceeds from the forward auction under paragraph (1) that

the salaries and expenses account of the Commission is

required to retain under section 309(j)(8)(B) of the Commu-

nications Act of 1934 (47 U.S.C. 309(j)(8)(B)) shall be suffi-

cient to cover the costs incurred by the Commission in

conducting the reverse auction under subsection (a)(1), con-

ducting the evaluation of the broadcast television spectrum

under subparagraph (A) of subsection (b)(1), and making

any reassignments or reallocations under subparagraph

(B) of such subsection, in addition to the costs incurred

by the Commission in conducting such forward auction.

(3) F

ACTOR FOR CONSIDERATION

.—In conducting the forward

auction under paragraph (1), the Commission shall consider

assigning licenses that cover geographic areas of a variety

of different sizes.

(d) TV B

ROADCASTER

ELOCATION

UND

.—

(1) E

STABLISHMENT

.—There is established in the Treasury

of the United States a fund to be known as the TV Broadcaster

Relocation Fund.

(2) P

AYMENT OF RELOCATION COSTS

.—Any amounts bor-

rowed under paragraph (3)(A) and any amounts in the TV

Broadcaster Relocation Fund that are not necessary for

reimbursement of the general fund of the Treasury for such

borrowed amounts shall be available to the Commission to

make the payments required by subsection (b)(4)(A).

(3) B

ORROWING AUTHORITY

.—

(A) I

N GENERAL

.—Beginning on the date when any

reassignments or reallocations under subsection (b)(1)(B)

become effective, as provided in subsection (f)(2), and

ending when $1,000,000,000 has been deposited in the

TV Broadcaster Relocation Fund, the Commission may bor-

row from the Treasury of the United States an amount

not to exceed $1,000,000,000 to use toward the payments

required by subsection (b)(4)(A).

(B) R

EIMBURSEMENT

.—The Commission shall

reimburse the general fund of the Treasury, without

interest, for any amounts borrowed under subparagraph

(A) as funds are deposited into the TV Broadcaster Reloca-

tion Fund.

Effective date.

Termination

date.

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126 STAT. 229 PUBLIC LAW 112–96—FEB. 22, 2012

(4) T

RANSFER OF UNUSED FUNDS

.—If any amounts remain

in the TV Broadcaster Relocation Fund after the date that

is 3 years after the completion of the forward auction under

subsection (c)(1), the Secretary of the Treasury shall—

(A) prior to the end of fiscal year 2022, transfer such

amounts to the Public Safety Trust Fund established by

section 6413(a)(1); and

(B) after the end of fiscal year 2022, transfer such

amounts to the general fund of the Treasury, where such

amounts shall be dedicated for the sole purpose of deficit

reduction.

(e) N

UMERICAL

IMITATION ON

UCTIONS AND

EORGANIZA

TION

.—The Commission may not complete more than one reverse

auction under subsection (a)(1) or more than one reorganization

of the broadcast television spectrum under subsection (b).

(f) T

IMING

.—

(1) C

ONTEMPORANEOUS AUCTIONS AND REORGANIZATION

PERMITTED

.—The Commission may conduct the reverse auction

under subsection (a)(1), any reassignments or reallocations

under subsection (b)(1)(B), and the forward auction under sub-

section (c)(1) on a contemporaneous basis.

(2) E

FFECTIVENESS OF REASSIGNMENTS AND REALLOCA

TIONS

.—Notwithstanding paragraph (1), no reassignments or

reallocations under subsection (b)(1)(B) shall become effective

until the completion of the reverse auction under subsection

(a)(1) and the forward auction under subsection (c)(1), and,

to the extent practicable, all such reassignments and realloca-

tions shall become effective simultaneously.

(3) D

EADLINE

.—The Commission may not conduct the

reverse auction under subsection (a)(1) or the forward auction

under subsection (c)(1) after the end of fiscal year 2022.

(4) L

IMIT ON DISCRETION REGARDING AUCTION TIMING

.—

Section 309(j)(15)(A) of the Communications Act of 1934 (47

U.S.C. 309(j)(15)(A)) shall not apply in the case of an auction

conducted under this section.

(g) L

IMITATION ON

EORGANIZATION

UTHORITY

.—

(1) I

N GENERAL

.—During the period described in paragraph

(2), the Commission may not—

(A) involuntarily modify the spectrum usage rights of

a broadcast television licensee or reassign such a licensee

to another television channel except—

(i) in accordance with this section; or

(ii) in the case of a violation by such licensee

of the terms of its license or a specific provision of

a statute administered by the Commission, or a regula-

tion of the Commission promulgated under any such

provision; or

(B) reassign a broadcast television licensee from a very

high frequency television channel to an ultra high fre-

quency television channel, unless—

(i) such a reassignment will not decrease the total

amount of ultra high frequency spectrum made avail-

able for reallocation under this section; or

(ii) a request from such licensee for the reassign-

ment was pending at the Commission on May 31,

2011.

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126 STAT. 230 PUBLIC LAW 112–96—FEB. 22, 2012

(2) P

ERIOD DESCRIBED

.—The period described in this para-

graph is the period beginning on the date of the enactment

of this Act and ending on the earliest of—

(A) the first date when the reverse auction under sub-

section (a)(1), the reassignments and reallocations (if any)

under subsection (b)(1)(B), and the forward auction under

subsection (c)(1) have been completed;

(B) the date of a determination by the Commission

that the amount of the proceeds from the forward auction

under subsection (c)(1) is not greater than the sum

described in subsection (c)(2)(B); or

(h) P

ROTEST

IGHT

NAPPLICABLE

.—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 this section.

(i) C

OMMISSION

UTHORITY

.—Nothing in subsection (b) shall

be construed to—

(1) expand or contract the authority of the Commission,

except as otherwise expressly provided; or

(2) prevent the implementation of the Commission’s ‘‘White

Spaces’’ Second Report and Order and Memorandum Opinion

and Order (FCC 08–260, adopted November 4, 2008) in the

spectrum that remains allocated for broadcast television use

after the reorganization required by such subsection.

SEC. 6404. CERTAIN CONDITIONS ON AUCTION PARTICIPATION

PROHIBITED.

Section 309(j) of the Communications Act of 1934 (47 U.S.C.

309(j)) is amended by adding at the end the following new para-

graph:

‘‘(17) C

ERTAIN CONDITIONS ON AUCTION PARTICIPATION

PROHIBITED

.—

‘‘(A) I

N GENERAL

.—Notwithstanding any other provi-

sion of law, the Commission may not prevent a person

from participating in a system of competitive bidding under

this subsection if such person—

‘‘(i) complies with all the auction procedures and

other requirements to protect the auction process

established by the Commission; and

‘‘(ii) either—

‘‘(I) meets the technical, financial, character,

and citizenship qualifications that the Commission

may require under section 303(l)(1), 308(b), or 310

to hold a license; or

‘‘(II) would meet such license qualifications by

means approved by the Commission prior to the

grant of the license.

‘‘(B) C

LARIFICATION OF AUTHORITY

.—Nothing in

subparagraph (A) affects any authority the Commission

has to adopt and enforce rules of general applicability,

including rules concerning spectrum aggregation that pro-

mote competition.’’.

SEC. 6405. EXTENSION OF AUCTION AUTHORITY.

Section 309(j)(11) of the Communications Act of 1934 (47 U.S.C.

309(j)(11)) is amended by striking ‘‘2012’’ and inserting ‘‘2022’’.

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126 STAT. 231 PUBLIC LAW 112–96—FEB. 22, 2012

SEC. 6406. UNLICENSED USE IN THE 5 GHZ BAND.

(a) M

ODIFICATION OF

OMMISSION

EGULATIONS TO

LLOW

TAIN

NLICENSED

.—

(1) I

N GENERAL

.—Subject to paragraph (2), not later than

1 year after the date of the enactment of this Act, the Commis-

sion shall begin a proceeding to modify part 15 of title 47,

Code of Federal Regulations, to allow unlicensed U–NII devices

to operate in the 5350–5470 MHz band.

(2) R

EQUIRED DETERMINATIONS

.—The Commission may

make the modification described in paragraph (1) only if the

Commission, in consultation with the Assistant Secretary,

determines that—

(A) licensed users will be protected by technical solu-

tions, including use of existing, modified, or new spectrum-

sharing technologies and solutions, such as dynamic fre-

quency selection; and

(B) the primary mission of Federal spectrum users

in the 5350–5470 MHz band will not be compromised by

the introduction of unlicensed devices.

(b) S

TUDY BY

NTIA.—

(1) I

N GENERAL

.—The Assistant Secretary, in consultation

with the Department of Defense and other impacted agencies,

shall conduct a study evaluating known and proposed spectrum-

sharing technologies and the risk to Federal users if unlicensed

U–NII devices were allowed to operate in the 5350–5470 MHz

band and in the 5850–5925 MHz band.

(2) S

UBMISSION

.—The Assistant Secretary shall submit to

the Commission and the Committee on Energy and Commerce

of the House of Representatives and the Committee on Com-

merce, Science, and Transportation of the Senate—

(A) not later than 8 months after the date of the

enactment of this Act, a report on the portion of the study

required by paragraph (1) with respect to the 5350–5470

MHz band; and

(B) not later than 18 months after the date of the

enactment of this Act, a report on the portion of the study

required by paragraph (1) with respect to the 5850–5925

MHz band.

EFINITIONS

.—In this section:

(1) 5350–5470

MHZ BAND

.—The term ‘‘5350–5470 MHz

band’’ means the portion of the electromagnetic spectrum

between the frequencies from 5350 megahertz to 5470 mega-

hertz.

(2) 5850–5925

MHZ BAND

.—The term ‘‘5850–5925 MHz

band’’ means the portion of the electromagnetic spectrum

between the frequencies from 5850 megahertz to 5925 mega-

hertz.

SEC. 6407. GUARD BANDS AND UNLICENSED USE.

(a) I

ENERAL

.—Nothing in subparagraph (G) of section

309(j)(8) of the Communications Act of 1934, as added by section

6402, or in section 6403 shall be construed to prevent the Commis-

sion from using relinquished or other spectrum to implement band

plans with guard bands.

(b) S

IZE OF

UARD

ANDS

.—Such guard bands shall be no

larger than is technically reasonable to prevent harmful interference

between licensed services outside the guard bands.

47 USC 1454.

Reports.

Deadlines.

Deadline.

47 USC 1453.

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126 STAT. 232 PUBLIC LAW 112–96—FEB. 22, 2012

NLICENSED

SE IN

UARD

ANDS

.—The Commission may

permit the use of such guard bands for unlicensed use.

(d) D

ATABASE

.—Unlicensed use shall rely on a database or

subsequent methodology as determined by the Commission.

(e) P

ROTECTIONS

GAINST

ARMFUL

NTERFERENCE

.—The

Commission may not permit any use of a guard band that the

Commission determines would cause harmful interference to

licensed services.

SEC. 6408. STUDY ON RECEIVER PERFORMANCE AND SPECTRUM EFFI-

CIENCY.

(a) I

ENERAL

.—The Comptroller General of the United States

shall conduct a study to consider efforts to ensure that each trans-

mission system is designed and operated so that reasonable use

of adjacent spectrum does not excessively impair the functioning

of such system.

(b) R

EQUIRED

ONSIDERATIONS

.—In conducting the study

required by subsection (a), the Comptroller General shall consider—

(1) the value of—

(A) improving receiver performance as it relates to

increasing spectral efficiency;

(B) improving the operation of services that are located

in adjacent spectrum; and

trum use;

(2) the role of manufacturers, commercial licensees, and

government users with respect to their transmission systems

and the use of adjacent spectrum;

(3) the feasibility of industry self-compliance with respect

to the design and operational requirements of transmission

systems and the reasonable use of adjacent spectrum; and

(4) the value of action by the Commission and the Assistant

Secretary to establish, by rule, technical requirements or stand-

ards for non-Federal and Federal use, respectively, with respect

to the reasonable use of portions of the radio spectrum that

are adjacent to each other.

EPORT

.—Not later than 1 year after the date of the enact-

ment of this Act, the Comptroller General shall submit a report

on the results of the study required by subsection (a) to the Com-

mittee on Energy and Commerce of the House of Representatives

and the Committee on Commerce, Science, and Transportation of

the Senate.

(d) T

RANSMISSION

YSTEM

EFINED

.—In this section, the term

‘‘transmission system’’ means any telecommunications, broadcast,

satellite, commercial mobile service, or other communications

system that employs radio spectrum.

SEC. 6409. WIRELESS FACILITIES DEPLOYMENT.

(a) F

ACILITY

ODIFICATIONS

.—

(1) I

N GENERAL

.—Notwithstanding section 704 of the Tele-

communications Act of 1996 (Public Law 104–104) or any other

provision of law, a State or local government may not deny,

and shall approve, any eligible facilities request for a modifica-

tion of an existing wireless tower or base station that does

not substantially change the physical dimensions of such tower

or base station.

(2) E

LIGIBLE FACILITIES REQUEST

.—For purposes of this

subsection, the term ‘‘eligible facilities request’’ means any

Definition.

47 USC 1455.

Determination.

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126 STAT. 233 PUBLIC LAW 112–96—FEB. 22, 2012

request for modification of an existing wireless tower or base

station that involves—

(A) collocation of new transmission equipment;

(B) removal of transmission equipment; or

(3) A

PPLICABILITY OF ENVIRONMENTAL LAWS

.—Nothing in

paragraph (1) shall be construed to relieve the Commission

from the requirements of the National Historic Preservation

Act or the National Environmental Policy Act of 1969.

(b) F

EDERAL

ASEMENTS AND

IGHTS

WAY

.—

(1) G

RANT

.—If an executive agency, a State, a political

subdivision or agency of a State, or a person, firm, or organiza-

tion applies for the grant of an easement or right-of-way to,

in, over, or on a building or other property owned by the

Federal Government for the right to install, construct, and

maintain wireless service antenna structures and equipment

and backhaul transmission equipment, the executive agency

having control of the building or other property may grant

to the applicant, on behalf of the Federal Government, an

easement or right-of-way to perform such installation, construc-

tion, and maintenance.

(2) A

PPLICATION

.—The Administrator of General Services

shall develop a common form for applications for easements

and rights-of-way under paragraph (1) for all executive agencies

that shall be used by applicants with respect to the buildings

or other property of each such agency.

(3) F

.—

(A) I

N GENERAL

.—Notwithstanding any other provision

of law, the Administrator of General Services shall estab-

lish a fee for the grant of an easement or right-of-way

pursuant to paragraph (1) that is based on direct cost

recovery.

(B) E

XCEPTIONS

.—The Administrator of General Serv-

ices may establish exceptions to the fee amount required

under subparagraph (A)—

(i) in consideration of the public benefit provided

by a grant of an easement or right-of-way; and

(ii) in the interest of expanding wireless and

broadband coverage.

(4) U

SE OF FEES COLLECTED

.—Any fee amounts collected

by an executive agency pursuant to paragraph (3) may be

made available, as provided in appropriations Acts, to such

agency to cover the costs of granting the easement or right-

of-way.

ASTER

ONTRACTS FOR

IRELESS

ACILITY

ITINGS

.—

(1) I

N GENERAL

.—Notwithstanding section 704 of the Tele-

communications Act of 1996 or any other provision of law,

and not later than 60 days after the date of the enactment

of this Act, the Administrator of General Services shall—

(A) develop 1 or more master contracts that shall

govern the placement of wireless service antenna structures

on buildings and other property owned by the Federal

Government; and

(B) in developing the master contract or contracts,

standardize the treatment of the placement of wireless

service antenna structures on building rooftops or facades,

the placement of wireless service antenna equipment on

Deadline.

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126 STAT. 234 PUBLIC LAW 112–96—FEB. 22, 2012

rooftops or inside buildings, the technology used in connec-

tion with wireless service antenna structures or equipment

placed on Federal buildings and other property, and any

other key issues the Administrator of General Services

considers appropriate.

(2) A

PPLICABILITY

.—The master contract or contracts devel-

oped by the Administrator of General Services under paragraph

(1) shall apply to all publicly accessible buildings and other

property owned by the Federal Government, unless the

Administrator of General Services decides that issues with

respect to the siting of a wireless service antenna structure

on a specific building or other property warrant nonstandard

treatment of such building or other property.

(3) A

PPLICATION

.—The Administrator of General Services

shall develop a common form or set of forms for wireless service

antenna structure siting applications under this subsection for

all executive agencies that shall be used by applicants with

respect to the buildings and other property of each such agency.

(d) E

XECUTIVE

GENCY

EFINED

.—In this section, the term

‘‘executive agency’’ has the meaning given such term in section

102 of title 40, United States Code.

SEC. 6410. FUNCTIONAL RESPONSIBILITY OF NTIA TO ENSURE EFFI-

CIENT USE OF SPECTRUM.

Section 103(b)(2) of the National Telecommunications and

Information Administration Organization Act (47 U.S.C. 902(b)(2))

is amended by adding at the end the following:

‘‘(U) The responsibility to promote the best possible

and most efficient use of electromagnetic spectrum

resources across the Federal Government, subject to and

consistent with the needs and missions of Federal agen-

cies.’’.

SEC. 6411. SYSTEM CERTIFICATION.

Not later than 6 months after the date of the enactment of

this Act, the Director of the Office of Management and Budget

shall update and revise section 33.4 of OMB Circular A–11 to

reflect the recommendations regarding such Circular made in the

Commerce Spectrum Management Advisory Committee Incentive

Subcommittee report, adopted January 11, 2011.

SEC. 6412. DEPLOYMENT OF 11 GHZ, 18 GHZ, AND 23 GHZ MICROWAVE

BANDS.

(a) FCC R

EPORT ON

EJECTION

ATE

.—Not later than 9 months

after the date of the enactment of this Act, the Commission shall

submit to the Committee on Energy and Commerce of the House

of Representatives and the Committee on Commerce, Science, and

Transportation of the Senate a report on the rejection rate for

the spectrum described in subsection (c).

(b) GAO S

TUDY ON

EPLOYMENT

.—

(1) I

N GENERAL

.—The Comptroller General of the United

States shall conduct a study to assess whether the spectrum

described in subsection (c) is being deployed in such a manner

that, in areas with high demand for common carrier licenses

for the use of such spectrum, market forces—

(A) provide adequate incentive for the efficient use

of such spectrum; and

Deadline.

47 USC 1456.

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126 STAT. 235 PUBLIC LAW 112–96—FEB. 22, 2012

(B) ensure that the Federal Government receives max-

imum revenue for such spectrum through competitive bid-

ding under section 309(j) of the Communications Act of

1934 (47 U.S.C. 309(j)).

(2) F

ACTORS FOR CONSIDERATION

.—In conducting the study

required by paragraph (1), the Comptroller General shall take

into consideration—

(A) spectrum that is adjacent to the spectrum described

in subsection (c) and that was assigned through competitive

bidding under section 309(j) of the Communications Act

of 1934; and

(B) the rejection rate for the spectrum described in

subsection (c), current as of the time of the assessment

and as projected for the future, in markets in which there

is a high demand for common carrier licenses for the use

of such spectrum.

(3) R

EPORT

.—Not later than 9 months after the date of

the enactment of this Act, the Comptroller General shall submit

a report on the study required by paragraph (1) to—

(A) the Commission; and

(B) the Committee on Energy and Commerce of the

House of Representatives and the Committee on Commerce,

Science, and Transportation of the Senate.

PECTRUM

ESCRIBED

.—The spectrum described in this sub-

section is the portions of the electromagnetic spectrum between

the frequencies from 10,700 megahertz to 11,700 megahertz, from

17,700 megahertz to 19,700 megahertz, and from 21,200 megahertz

to 23,600 megahertz.

(d) R

EJECTION

ATE

EFINED

.—In this section, the term ‘‘rejec-

tion rate’’ means the number and percent of applications (whether

made to the Commission or to a third-party coordinator) for common

carrier use of spectrum that were not granted because of lack

of availability of such spectrum or interference concerns of existing

licensees.

(e) N

DDITIONAL

UNDS

UTHORIZED

.—Funds necessary to

carry out this section shall be derived from funds otherwise author-

ized to be appropriated.

SEC. 6413. PUBLIC SAFETY TRUST FUND.

(a) E

STABLISHMENT OF

UBLIC

AFETY

RUST

UND

.—

(1) I

N GENERAL

.—There is established in the Treasury of

the United States a trust fund to be known as the Public

Safety Trust Fund.

(2) A

VAILABILITY

.—Amounts deposited in the Public Safety

Trust Fund shall remain available through fiscal year 2022.

Any amounts remaining in the Fund after the end of such

fiscal year shall be deposited in the general fund of the

Treasury, where such amounts shall be dedicated for the sole

purpose of deficit reduction.

(b) U

SE OF

UND

.—As amounts are deposited in the Public

Safety Trust Fund, such amounts shall be used to make the fol-

lowing deposits or payments in the following order of priority:

(1) R

EPAYMENT OF AMOUNT BORROWED FOR FIRST

RESPONDER NETWORK AUTHORITY

.—An amount not to exceed

$2,000,000,000 shall be available to the NTIA to reimburse

the general fund of the Treasury for any amounts borrowed

under section 6207.

47 USC 1457.

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126 STAT. 236 PUBLIC LAW 112–96—FEB. 22, 2012

(2) S

TATE AND LOCAL IMPLEMENTATION FUND

.—

$135,000,000 shall be deposited in the State and Local

Implementation Fund established by section 6301.

(3) B

UILDOUT BY FIRST RESPONDER NETWORK AUTHORITY

.—

$7,000,000,000, reduced by the amount borrowed under section

6207, shall be deposited in the Network Construction Fund

established by section 6206.

(4) P

UBLIC SAFETY RESEARCH

.—$100,000,000 shall be avail-

able to the Director of NIST to carry out section 6303.

(5) D

EFICIT REDUCTION

.—$20,400,000,000 shall be depos-

ited in the general fund of the Treasury, where such amount

shall be dedicated for the sole purpose of deficit reduction.

(6) 9–1–1,

–

AND NEXT GENERATION 9

–

IMPLEMENTATION GRANTS

.—$115,000,000 shall be available to

the Assistant Secretary and the Administrator of the National

Highway Traffic Safety Administration to carry out the grant

program under section 158 of the National Telecommunications

and Information Administration Organization Act, as amended

by section 6503 of this title.

(7) A

DDITIONAL PUBLIC SAFETY RESEARCH

.—$200,000,000

shall be available to the Director of NIST to carry out section

6303.

(8) A

DDITIONAL DEFICIT REDUCTION

.—Any remaining

amounts deposited in the Public Safety Trust Fund shall be

deposited in the general fund of the Treasury, where such

amounts shall be dedicated for the sole purpose of deficit reduc-

tion.

NVESTMENT

.—Amounts in the Public Safety Trust Fund

shall be invested in accordance with section 9702 of title 31, United

States Code, and any interest on, and proceeds from, any such

investment shall be credited to, and become a part of, the Fund.

SEC. 6414. STUDY ON EMERGENCY COMMUNICATIONS BY AMATEUR

RADIO AND IMPEDIMENTS TO AMATEUR RADIO COMMU-

NICATIONS.

(a) I

ENERAL

.—Not later than 180 days after the date of

the enactment of this Act, the Commission, in consultation with

the Office of Emergency Communications in the Department of

Homeland Security, shall—

(1) complete a study on the uses and capabilities of amateur

radio service communications in emergencies and disaster relief;

and

(2) submit to the Committee on Energy and Commerce

of the House of Representatives and the Committee on Com-

merce, Science, and Transportation of the Senate a report on

the findings of such study.

(b) C

ONTENTS

.—The study required by subsection (a) shall

include—

(1)(A) a review of the importance of emergency amateur

radio service communications relating to disasters, severe

weather, and other threats to lives and property in the United

States; and

(B) recommendations for—

(i) enhancements in the voluntary deployment of ama-

teur radio operators in disaster and emergency communica-

tions and disaster relief efforts; and

Reports.

Deadline.

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126 STAT. 237 PUBLIC LAW 112–96—FEB. 22, 2012

(ii) improved integration of amateur radio operators

in the planning and furtherance of initiatives of the Federal

Government; and

(2)(A) an identification of impediments to enhanced ama-

teur radio service communications, such as the effects of

unreasonable or unnecessary private land use restrictions on

residential antenna installations; and

(B) recommendations regarding the removal of such impedi-

ments.

XPERTISE

.—In conducting the study required by subsection

(a), the Commission shall use the expertise of stakeholder entities

and organizations, including the amateur radio, emergency

response, and disaster communications communities.

Subtitle E—Next Generation 9–1–1

Advancement Act of 2012

SEC. 6501. SHORT TITLE.

This subtitle may be cited as the ‘‘Next Generation 9–1–1

Advancement Act of 2012’’.

SEC. 6502. DEFINITIONS.

In this subtitle, the following definitions shall apply:

(1) 9–1–1

SERVICES AND E9

–

1 SERVICES

.—The terms ‘‘9–

1–1 services’’ and ‘‘E9–1–1 services’’ shall have the meaning

given those terms in section 158 of the National Telecommuni-

cations and Information Administration Organization Act (47

U.S.C. 942), as amended by this subtitle.

(2) M

ULTI

LINE TELEPHONE SYSTEM

.—The term ‘‘multi-line

telephone system’’ or ‘‘MLTS’’ means a system comprised of

common control units, telephone sets, control hardware and

software and adjunct systems, including network and premises

based systems, such as Centrex and VoIP, as well as PBX,

Hybrid, and Key Telephone Systems (as classified by the

Commission under part 68 of title 47, Code of Federal Regula-

tions), and includes systems owned or leased by governmental

agencies and non-profit entities, as well as for profit businesses.

(3) O

FFICE

.—The term ‘‘Office’’ means the 9–1–1

Implementation Coordination Office established under section

158 of the National Telecommunications and Information

Administration Organization Act (47 U.S.C. 942), as amended

by this subtitle.

SEC. 6503. COORDINATION OF 9–1–1 IMPLEMENTATION.

Section 158 of the National Telecommunications and Informa-

tion Administration Organization Act (47 U.S.C. 942) is amended

to read as follows:

‘‘SEC. 158. COORDINATION OF 9–1–1, E9–1–1, AND NEXT GENERATION

9–1–1 IMPLEMENTATION.

‘‘(a) 9–1–1 I

MPLEMENTATION

OORDINATION

FFICE

.—

‘‘(1) E

STABLISHMENT AND CONTINUATION

.—The Assistant

Secretary and the Administrator of the National Highway

Traffic Safety Administration shall—

‘‘(A) establish and further a program to facilitate

coordination and communication between Federal, State,

47 USC 1471.

47 USC 1401

note.

Next Generation

9–1–1

Advancement Act

of 2012.

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126 STAT. 238 PUBLIC LAW 112–96—FEB. 22, 2012

and local emergency communications systems, emergency

personnel, public safety organizations, telecommunications

carriers, and telecommunications equipment manufacturers

and vendors involved in the implementation of 9–1–1 serv-

ices; and

‘‘(B) establish a 9–1–1 Implementation Coordination

Office to implement the provisions of this section.

‘‘(2) M

ANAGEMENT PLAN

.—

‘‘(A) D

EVELOPMENT

.—The Assistant Secretary and the

Administrator shall develop a management plan for the

grant program established under this section, including

by developing—

‘‘(i) plans related to the organizational structure

of such program; and

‘‘(ii) funding profiles for each fiscal year of the

duration of such program.

‘‘(B) S

UBMISSION TO CONGRESS

.—Not later than 90 days

after the date of enactment of the Next Generation 9–

1–1 Advancement Act of 2012, the Assistant Secretary

and the Administrator shall submit the management plan

developed under subparagraph (A) to—

‘‘(i) the Committees on Commerce, Science, and

Transportation and Appropriations of the Senate; and

‘‘(ii) the Committees on Energy and Commerce

and Appropriations of the House of Representatives.

‘‘(3) P

URPOSE OF OFFICE

.—The Office shall—

‘‘(A) take actions, in concert with coordinators des-

ignated in accordance with subsection (b)(3)(A)(ii), to

improve coordination and communication with respect to

the implementation of 9–1–1 services, E9–1–1 services,

and Next Generation 9–1–1 services;

‘‘(B) develop, collect, and disseminate information con-

cerning practices, procedures, and technology used in the

implementation of 9–1–1 services, E9–1–1 services, and

Next Generation 9–1–1 services;

‘‘(C) advise and assist eligible entities in the prepara-

tion of implementation plans required under subsection

(b)(3)(A)(iii);

‘‘(D) receive, review, and recommend the approval or

disapproval of applications for grants under subsection (b);

and

‘‘(E) oversee the use of funds provided by such grants

in fulfilling such implementation plans.

‘‘(4) R

EPORTS

.—The Assistant Secretary and the Adminis-

trator shall provide an annual report to Congress by the first

day of October of each year on the activities of the Office

to improve coordination and communication with respect to

the implementation of 9–1–1 services, E9–1–1 services, and

Next Generation 9–1–1 services.

‘‘(b) 9–1–1, E9–1–1,

AND

EXT

ENERATION

9–1–1 I

MPLEMENTA

TION

RANTS

.—

‘‘(1) M

ATCHING GRANTS

.—The Assistant Secretary and the

Administrator, acting through the Office, shall provide grants

to eligible entities for—

Deadline.

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126 STAT. 239 PUBLIC LAW 112–96—FEB. 22, 2012

‘‘(A) the implementation and operation of 9–1–1 serv-

ices, E9–1–1 services, migration to an IP-enabled emer-

gency network, and adoption and operation of Next Genera-

tion 9–1–1 services and applications;

‘‘(B) the implementation of IP-enabled emergency serv-

ices and applications enabled by Next Generation 9–1–

1 services, including the establishment of IP backbone net-

works and the application layer software infrastructure

needed to interconnect the multitude of emergency response

organizations; and

‘‘(C) training public safety personnel, including call-

takers, first responders, and other individuals and

organizations who are part of the emergency response chain

in 9–1–1 services.

‘‘(2) M

ATCHING REQUIREMENT

.—The Federal share of the

cost of a project eligible for a grant under this section shall

not exceed 60 percent.

‘‘(3) C

OORDINATION REQUIRED

.—In providing grants under

paragraph (1), the Assistant Secretary and the Administrator

shall require an eligible entity to certify in its application

that—

‘‘(A) in the case of an eligible entity that is a State

government, the entity—

‘‘(i) has coordinated its application with the public

safety answering points located within the jurisdiction

of such entity;

‘‘(ii) has designated a single officer or governmental

body of the entity to serve as the coordinator of

implementation of 9–1–1 services, except that such

designation need not vest such coordinator with direct

legal authority to implement 9–1–1 services, E9–1–

1 services, or Next Generation 9–1–1 services or to

manage emergency communications operations;

‘‘(iii) has established a plan for the coordination

and implementation of 9–1–1 services, E9–1–1 services,

and Next Generation 9–1–1 services; and

‘‘(iv) has integrated telecommunications services

involved in the implementation and delivery of 9–1–

1 services, E9–1–1 services, and Next Generation 9–

1–1 services; or

‘‘(B) in the case of an eligible entity that is not a

State, the entity has complied with clauses (i), (iii), and

(iv) of subparagraph (A), and the State in which it is

located has complied with clause (ii) of such subparagraph.

‘‘(4) C

RITERIA

.—Not later than 120 days after the date

of enactment of the Next Generation 9–1–1 Advancement Act

of 2012, the Assistant Secretary and the Administrator shall

issue regulations, after providing the public with notice and

an opportunity to comment, prescribing the criteria for selection

for grants under this section. The criteria shall include perform-

ance requirements and a timeline for completion of any project

to be financed by a grant under this section. The Assistant

Secretary and the Administrator shall update such regulations

as necessary.

‘‘(c) D

IVERSION OF

9–1–1 C

HARGES

.—

‘‘(1) D

ESIGNATED 9

–

1 CHARGES

.—For the purposes of this

subsection, the term ‘designated 9–1–1 charges’ means any

Definition.

Deadline.

Regulations.

Public comments.

Certification.

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126 STAT. 240 PUBLIC LAW 112–96—FEB. 22, 2012

taxes, fees, or other charges imposed by a State or other taxing

jurisdiction that are designated or presented as dedicated to

deliver or improve 9–1–1 services, E9–1–1 services, or Next

Generation 9–1–1 services.

‘‘(2) C

ERTIFICATION

.—Each applicant for a matching grant

under this section shall certify to the Assistant Secretary and

the Administrator at the time of application, and each applicant

that receives such a grant shall certify to the Assistant Sec-

retary and the Administrator annually thereafter during any

period of time during which the funds from the grant are

available to the applicant, that no portion of any designated

9–1–1 charges imposed by a State or other taxing jurisdiction

within which the applicant is located are being obligated or

expended for any purpose other than the purposes for which

such charges are designated or presented during the period

beginning 180 days immediately preceding the date of the

application and continuing through the period of time during

which the funds from the grant are available to the applicant.

‘‘(3) C

ONDITION OF GRANT

.—Each applicant for a grant

under this section shall agree, as a condition of receipt of

the grant, that if the State or other taxing jurisdiction within

which the applicant is located, during any period of time during

which the funds from the grant are available to the applicant,

obligates or expends designated 9–1–1 charges for any purpose

other than the purposes for which such charges are designated

or presented, eliminates such charges, or redesignates such

charges for purposes other than the implementation or oper-

ation of 9–1–1 services, E9–1–1 services, or Next Generation

9–1–1 services, all of the funds from such grant shall be

returned to the Office.

‘‘(4) P

ENALTY FOR PROVIDING FALSE INFORMATION

.—Any

applicant that provides a certification under paragraph (2)

knowing that the information provided in the certification was

false shall—

‘‘(A) not be eligible to receive the grant under sub-

section (b);

‘‘(B) return any grant awarded under subsection (b)

during the time that the certification was not valid; and

‘‘(C) not be eligible to receive any subsequent grants

under subsection (b).

‘‘(d) F

UNDING AND

ERMINATION

.—

‘‘(1) I

N GENERAL

.—From the amounts made available to

the Assistant Secretary and the Administrator under section

6413(b)(6) of the Middle Class Tax Relief and Job Creation

Act of 2012, the Assistant Secretary and the Administrator

are authorized to provide grants under this section through

the end of fiscal year 2022. Not more than 5 percent of such

amounts may be obligated or expended to cover the administra-

tive costs of carrying out this section.

‘‘(2) T

ERMINATION

.—Effective on October 1, 2022, the

authority provided by this section terminates and this section

shall have no effect.

‘‘(e) D

EFINITIONS

.—In this section, the following definitions shall

apply:

‘‘(1) 9–1–1

SERVICES

.—The term ‘9–1–1 services’ includes

both E9–1–1 services and Next Generation 9–1–1 services.

Applicability.

Time period.

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126 STAT. 241 PUBLIC LAW 112–96—FEB. 22, 2012

‘‘(2) E9–1–1

SERVICES

.—The term ‘E9–1–1 services’ means

both phase I and phase II enhanced 9–1–1 services, as described

in section 20.18 of the Commission’s regulations (47 C.F.R.

20.18), as in effect on the date of enactment of the Next Genera-

tion 9–1–1 Advancement Act of 2012, or as subsequently revised

by the Commission.

‘‘(3) E

LIGIBLE ENTITY

.—

‘‘(A) I

N GENERAL

.—The term ‘eligible entity’ means a

State or local government or a tribal organization (as

defined in section 4(l) of the Indian Self-Determination

and Education Assistance Act (25 U.S.C. 450b(l))).

‘‘(B) I

NSTRUMENTALITIES

.—The term ‘eligible entity’

includes public authorities, boards, commissions, and

similar bodies created by one or more eligible entities

described in subparagraph (A) to provide 9–1–1 services,

E9–1–1 services, or Next Generation 9–1–1 services.

‘‘(C) E

XCEPTION

.—The term ‘eligible entity’ does not

include any entity that has failed to submit the most

recently required certification under subsection (c) within

30 days after the date on which such certification is due.

‘‘(4) E

MERGENCY CALL

.—The term ‘emergency call’ refers

to any real-time communication with a public safety answering

point or other emergency management or response agency,

including—

‘‘(A) through voice, text, or video and related data;

and

‘‘(B) nonhuman-initiated automatic event alerts, such

as alarms, telematics, or sensor data, which may also

include real-time voice, text, or video communications.

‘‘(5) N

EXT GENERATION 9

–

1 SERVICES

.—The term ‘Next

Generation 9–1–1 services’ means an IP-based system com-

prised of hardware, software, data, and operational policies

and procedures that—

‘‘(A) provides standardized interfaces from emergency

call and message services to support emergency commu-

nications;

‘‘(B) processes all types of emergency calls, including

voice, data, and multimedia information;

‘‘(C) acquires and integrates additional emergency call

data useful to call routing and handling;

‘‘(D) delivers the emergency calls, messages, and data

to the appropriate public safety answering point and other

appropriate emergency entities;

‘‘(E) supports data or video communications needs for

coordinated incident response and management; and

‘‘(F) provides broadband service to public safety

answering points or other first responder entities.

‘‘(6) O

FFICE

.—The term ‘Office’ means the 9–1–1

Implementation Coordination Office.

‘‘(7) P

UBLIC SAFETY ANSWERING POINT

.—The term ‘public

safety answering point’ has the meaning given the term in

section 222 of the Communications Act of 1934 (47 U.S.C.

222).

‘‘(8) S

TATE

.—The term ‘State’ means any State of the

United States, the District of Columbia, Puerto Rico, American

Samoa, Guam, the United States Virgin Islands, the Northern

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126 STAT. 242 PUBLIC LAW 112–96—FEB. 22, 2012

Mariana Islands, and any other territory or possession of the

United States.’’.

SEC. 6504. REQUIREMENTS FOR MULTI-LINE TELEPHONE SYSTEMS.

(a) I

ENERAL

.—Not later than 270 days after the date of

the enactment of this Act, the Administrator of General Services,

in conjunction with the Office, shall issue a report to Congress

identifying the 9–1–1 capabilities of the multi-line telephone system

in use by all Federal agencies in all Federal buildings and prop-

erties.

(b) C

OMMISSION

CTION

.—

(1) I

N GENERAL

.—Not later than 90 days after the date

of the enactment of this Act, the Commission shall issue a

public notice seeking comment on the feasibility of MLTS manu-

facturers including within all such systems manufactured or

sold after a date certain, to be determined by the Commission,

one or more mechanisms to provide a sufficiently precise indica-

tion of a 9–1–1 caller’s location, while avoiding the imposition

of undue burdens on MLTS manufacturers, providers, and

operators.

(2) S

PECIFIC REQUIREMENT

.—The public notice under para-

graph (1) shall seek comment on the National Emergency

Number Association’s ‘‘Technical Requirements Document On

Model Legislation E9–1–1 for Multi-Line Telephone Systems’’

(NENA 06–750, Version 2).

SEC. 6505. GAO STUDY OF STATE AND LOCAL USE OF 9–1–1 SERVICE

CHARGES.

(a) I

ENERAL

.—Not later than 60 days after the date of

the enactment of this Act, the Comptroller General of the United

States shall initiate a study of—

(1) the imposition of taxes, fees, or other charges imposed

by States or political subdivisions of States that are designated

or presented as dedicated to improve emergency communica-

tions services, including 9–1–1 services or enhanced 9–1–1 serv-

ices, or related to emergency communications services oper-

ations or improvements; and

(2) the use of revenues derived from such taxes, fees, or

charges.

(b) R

EPORT

.—Not later than 18 months after initiating the

study required by subsection (a), the Comptroller General shall

prepare and submit a report on the results of the study to the

Committee on Commerce, Science, and Transportation of the Senate

and the Committee on Energy and Commerce of the House of

Representatives setting forth the findings, conclusions, and rec-

ommendations, if any, of the study, including—

(1) the identity of each State or political subdivision that

imposes such taxes, fees, or other charges; and

(2) the amount of revenues obligated or expended by that

State or political subdivision for any purpose other than the

purposes for which such taxes, fees, or charges were designated

or presented.

SEC. 6506. PARITY OF PROTECTION FOR PROVISION OR USE OF NEXT

GENERATION 9–1–1 SERVICES.

(a) I

MMUNITY

.—A provider or user of Next Generation 9–1–

1 services, a public safety answering point, and the officers, direc-

tors, employees, vendors, agents, and authorizing government entity

47 USC 1472.

Deadline.

Notice.

Reports.

Deadlines.

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126 STAT. 243 PUBLIC LAW 112–96—FEB. 22, 2012

(if any) of such provider, user, or public safety answering point,

shall have immunity and protection from liability under Federal

and State law to the extent provided in subsection (b) with respect

to—

(1) the release of subscriber information related to emer-

gency calls or emergency services;

(2) the use or provision of 9–1–1 services, E9–1–1 services,

or Next Generation 9–1–1 services; and

(3) other matters related to 9–1–1 services, E9–1–1 serv-

ices, or Next Generation 9–1–1 services.

(b) S

COPE OF

MMUNITY AND

ROTECTION

ROM

IABILITY

.—

The scope and extent of the immunity and protection from liability

afforded under subsection (a) shall be the same as that provided

under section 4 of the Wireless Communications and Public Safety

Act of 1999 (47 U.S.C. 615a) to wireless carriers, public safety

answering points, and users of wireless 9–1–1 service (as defined

in paragraphs (4), (3), and (6), respectively, of section 6 of that

Act (47 U.S.C. 615b)) with respect to such release, use, and other

matters.

SEC. 6507. COMMISSION PROCEEDING ON AUTODIALING.

(a) I

ENERAL

.—Not later than 90 days after the date of

the enactment of this Act, the Commission shall initiate a pro-

ceeding to create a specialized Do-Not-Call registry for public safety

answering points.

(b) F

EATURES OF THE

EGISTRY

.—The Commission shall issue

regulations, after providing the public with notice and an oppor-

tunity to comment, that—

(1) permit verified public safety answering point adminis-

trators or managers to register the telephone numbers of all

9–1–1 trunks and other lines used for the provision of emer-

gency services to the public or for communications between

public safety agencies;

(2) provide a process for verifying, no less frequently than

once every 7 years, that registered numbers should continue

to appear upon the registry;

(3) provide a process for granting and tracking access to

the registry by the operators of automatic dialing equipment;

(4) protect the list of registered numbers from disclosure

or dissemination by parties granted access to the registry;

and

(5) prohibit the use of automatic dialing or ‘‘robocall’’ equip-

ment to establish contact with registered numbers.

NFORCEMENT

.—The Commission shall—

(1) establish monetary penalties for violations of the protec-

tive regulations established pursuant to subsection (b)(4) of

not less than $100,000 per incident nor more than $1,000,000

per incident;

(2) establish monetary penalties for violations of the

prohibition on automatically dialing registered numbers estab-

lished pursuant to subsection (b)(5) of not less than $10,000

per call nor more than $100,000 per call; and

(3) provide for the imposition of fines under paragraphs

(1) or (2) that vary depending upon whether the conduct leading

to the violation was negligent, grossly negligent, reckless, or

willful, and depending on whether the violation was a first

or subsequent offence.

Penalties.

Fines.

Regulations.

Notice.

Deadline.

47 USC 1473.

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126 STAT. 244 PUBLIC LAW 112–96—FEB. 22, 2012

SEC. 6508. REPORT ON COSTS FOR REQUIREMENTS AND SPECIFICA-

TIONS OF NEXT GENERATION 9–1–1 SERVICES.

(a) I

ENERAL

.—Not later than 1 year after the date of the

enactment of this Act, the Office, in consultation with the Adminis-

trator of the National Highway Traffic Safety Administration, the

Commission, and the Secretary of Homeland Security, shall prepare

and submit a report to Congress that analyzes and determines

detailed costs for specific Next Generation 9–1–1 service require-

ments and specifications.

(b) P

URPOSE OF

EPORT

.—The purpose of the report required

under subsection (a) is to serve as a resource for Congress as

it considers creating a coordinated, long-term funding mechanism

for the deployment and operation, accessibility, application develop-

ment, equipment procurement, and training of personnel for Next

Generation 9–1–1 services.

EQUIRED

NCLUSIONS

.—The report required under sub-

section (a) shall include the following:

(1) How costs would be broken out geographically and

allocated among public safety answering points, broadband

service providers, and third-party providers of Next Generation

9–1–1 services.

(2) An assessment of the current state of Next Generation

9–1–1 service readiness among public safety answering points.

(3) How differences in public safety answering points’ access

to broadband across the United States may affect costs.

(4) A technical analysis and cost study of different delivery

platforms, such as wireline, wireless, and satellite.

(5) An assessment of the architectural characteristics, feasi-

bility, and limitations of Next Generation 9–1–1 service

delivery.

(6) An analysis of the needs for Next Generation 9–1–

1 services of persons with disabilities.

(7) Standards and protocols for Next Generation 9–1–1

services and for incorporating Voice over Internet Protocol and

‘‘Real-Time Text’’ standards.

SEC. 6509. COMMISSION RECOMMENDATIONS FOR LEGAL AND STATU-

TORY FRAMEWORK FOR NEXT GENERATION 9–1–1 SERV-

ICES.

Not later than 1 year after the date of the enactment of this

Act, the Commission, in coordination with the Secretary of Home-

land Security, the Administrator of the National Highway Traffic

Safety Administration, and the Office, shall prepare and submit

a report to Congress that contains recommendations for the legal

and statutory framework for Next Generation 9–1–1 services, con-

sistent with recommendations in the National Broadband Plan

developed by the Commission pursuant to the American Recovery

and Reinvestment Act of 2009, including the following:

(1) A legal and regulatory framework for the development

of Next Generation 9–1–1 services and the transition from

legacy 9–1–1 to Next Generation 9–1–1 networks.

(2) Legal mechanisms to ensure efficient and accurate

transmission of 9–1–1 caller information to emergency response

agencies.

(3) Recommendations for removing jurisdictional barriers

and inconsistent legacy regulations including—

Deadline.

Reports.

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126 STAT. 245 PUBLIC LAW 112–96—FEB. 22, 2012

(A) proposals that would require States to remove regu-

latory roadblocks to Next Generation 9–1–1 services

development, while recognizing existing State authority

over 9–1–1 services;

(B) eliminating outdated 9–1–1 regulations at the Fed-

eral level; and

Subtitle F—Telecommunications

Development Fund

SEC. 6601. NO ADDITIONAL FEDERAL FUNDS.

Section 309(j)(8)(C)(iii) of the Communications Act of 1934 (47

U.S.C. 309(j)(8)(C)(iii)) is amended to read as follows:

‘‘(iii) the interest accrued to the account shall be

deposited in the general fund of the Treasury, where

such amount shall be dedicated for the sole purpose

of deficit reduction.’’.

SEC. 6602. INDEPENDENCE OF THE FUND.

Section 714 of the Communications Act of 1934 (47 U.S.C.

614) is amended—

(1) by striking subsection (c) and inserting the following:

‘‘(c) I

NDEPENDENT

OARD OF

IRECTORS

.—The Fund shall have

a Board of Directors consisting of 5 people with experience in

areas including finance, investment banking, government banking,

communications law and administrative practice, and public policy.

The Board of Directors shall select annually a Chair from among

the directors. A nominating committee, comprised of the Chair

and 2 other directors selected by the Chair, shall appoint additional

directors. The Fund’s bylaws shall regulate the other aspects of

the Board of Directors, including provisions relating to meetings,

quorums, committees, and other matters, all as typically contained

in the bylaws of a similar private investment fund.’’;

(2) in subsection (d)—

(A) by striking ‘‘(after consultation with the Commis-

sion and the Secretary of the Treasury)’’;

(B) by striking paragraph (1); and

paragraphs (1) through (3), respectively; and

(3) in subsection (g), by striking ‘‘subsection (d)(2)’’ and

inserting ‘‘subsection (d)(1)’’.

Subtitle G—Federal Spectrum Relocation

SEC. 6701. RELOCATION OF AND SPECTRUM SHARING BY FEDERAL

GOVERNMENT STATIONS.

(a) I

ENERAL

.—Section 113 of the National Telecommuni-

cations and Information Administration Organization Act (47 U.S.C.

923) is amended—

(1) in subsection (g)—

(A) by striking the heading and inserting ‘‘R

ELOCATION

OF AND

PECTRUM

HARING BY

EDERAL

OVERNMENT

TIONS

.—’’;

(B) by amending paragraph (1) to read as follows:

Appointments.

Deadline.

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126 STAT. 246 PUBLIC LAW 112–96—FEB. 22, 2012

‘‘(1) E

LIGIBLE FEDERAL ENTITIES

.—Any Federal entity that

operates a Federal Government station authorized to use a

band of eligible frequencies described in paragraph (2) and

that incurs relocation or sharing costs because of planning

for an auction of spectrum frequencies or the reallocation of

spectrum frequencies from Federal use to exclusive non-Federal

use or to shared use shall receive payment for such relocation

or sharing costs from the Spectrum Relocation Fund, in accord-

ance with this section and section 118. For purposes of this

paragraph, Federal power agencies exempted under subsection

(c)(4) that choose to relocate from the frequencies identified

for reallocation pursuant to subsection (a) are eligible to receive

payment under this paragraph.’’;

‘‘(B) any other band of frequencies reallocated from

Federal use to non-Federal use or to shared use after

January 1, 2003, that is assigned by competitive bidding

pursuant to section 309(j) of the Communications Act of

1934 (47 U.S.C. 309(j)).’’;

(D) by amending paragraph (3) to read as follows:

‘‘(3) R

ELOCATION OR SHARING COSTS DEFINED

.—

‘‘(A) I

N GENERAL

.—For purposes of this section and

section 118, the term ‘relocation or sharing costs’ means

the costs incurred by a Federal entity in connection with

the auction of spectrum frequencies previously assigned

to such entity or the sharing of spectrum frequencies

assigned to such entity (including the auction or a planned

auction of the rights to use spectrum frequencies on a

shared basis with such entity) in order to achieve com-

parable capability of systems as before the relocation or

sharing arrangement. Such term includes, with respect

to relocation or sharing, as the case may be—

‘‘(i) the costs of any modification or replacement

of equipment, spares, associated ancillary equipment,

software, facilities, operating manuals, training, or

compliance with regulations that are attributable to

relocation or sharing;

‘‘(ii) the costs of all engineering, equipment, soft-

ware, site acquisition, and construction, as well as

any legitimate and prudent transaction expense,

including term-limited Federal civil servant and con-

tractor staff necessary to carry out the relocation or

sharing activities of a Federal entity, and reasonable

additional costs incurred by the Federal entity that

are attributable to relocation or sharing, including

increased recurring costs associated with the replace-

ment of facilities;

‘‘(iii) the costs of research, engineering studies,

economic analyses, or other expenses reasonably

incurred in connection with—

‘‘(I) calculating the estimated relocation or

sharing costs that are provided to the Commission

pursuant to paragraph (4)(A);

‘‘(II) determining the technical or operational

feasibility of relocation to 1 or more potential

relocation bands; or

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126 STAT. 247 PUBLIC LAW 112–96—FEB. 22, 2012

‘‘(III) planning for or managing a relocation

or sharing arrangement (including spectrum

coordination with auction winners);

‘‘(iv) the one-time costs of any modification of

equipment reasonably necessary—

‘‘(I) to accommodate non-Federal use of shared

frequencies; or

‘‘(II) in the case of eligible frequencies reallo-

cated for exclusive non-Federal use and assigned

through a system of competitive bidding under

section 309(j) of the Communications Act of 1934

(47 U.S.C. 309(j)) but with respect to which a

Federal entity retains primary allocation or pro-

tected status for a period of time after the comple-

tion of the competitive bidding process, to

accommodate shared Federal and non-Federal use

of such frequencies for such period; and

‘‘(v) the costs associated with the accelerated

replacement of systems and equipment if the accelera-

tion is necessary to ensure the timely relocation of

systems to a new frequency assignment or the timely

accommodation of sharing of Federal frequencies.

‘‘(B) C

OMPARABLE CAPABILITY OF SYSTEMS

.—For pur-

poses of subparagraph (A), comparable capability of sys-

tems—

‘‘(i) may be achieved by relocating a Federal

Government station to a new frequency assignment,

by relocating a Federal Government station to a dif-

ferent geographic location, by modifying Federal

Government equipment to mitigate interference or use

less spectrum, in terms of bandwidth, geography, or

time, and thereby permitting spectrum sharing

(including sharing among relocated Federal entities

and incumbents to make spectrum available for non-

Federal use) or relocation, or by utilizing an alternative

technology; and

‘‘(ii) includes the acquisition of state-of-the-art

replacement systems intended to meet comparable

operational scope, which may include incidental

increases in functionality.’’;

(E) in paragraph (4)—

(i) in the heading, by striking ‘‘

RELOCATIONS COSTS

’’

and inserting ‘‘

RELOCATION OR SHARING COSTS

’’;

(ii) by striking ‘‘relocation costs’’ each place it

appears and inserting ‘‘relocation or sharing costs’’;

and

(iii) in subparagraph (A), by inserting ‘‘or sharing’’

after ‘‘such relocation’’;

(F) in paragraph (5)—

(i) by striking ‘‘relocation costs’’ and inserting

‘‘relocation or sharing costs’’; and

(ii) by inserting ‘‘or sharing’’ after ‘‘for relocation’’;

and

(G) by amending paragraph (6) to read as follows:

‘‘(6) I

MPLEMENTATION OF PROCEDURES

.—The NTIA shall

take such actions as necessary to ensure the timely relocation

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126 STAT. 248 PUBLIC LAW 112–96—FEB. 22, 2012

of Federal entities’ spectrum-related operations from fre-

quencies described in paragraph (2) to frequencies or facilities

of comparable capability and to ensure the timely implementa-

tion of arrangements for the sharing of frequencies described

in such paragraph. Upon a finding by the NTIA that a Federal

entity has achieved comparable capability of systems, the NTIA

shall terminate or limit the entity’s authorization and notify

the Commission that the entity’s relocation has been completed

or sharing arrangement has been implemented. The NTIA shall

also terminate such entity’s authorization if the NTIA deter-

mines that the entity has unreasonably failed to comply with

the timeline for relocation or sharing submitted by the Director

of the Office of Management and Budget under section

118(d)(2)(C).’’;

(2) by redesignating subsections (h) and (i) as subsections

(k) and (l), respectively; and

(3) by inserting after subsection (g) the following:

‘‘(h) D

EVELOPMENT AND

UBLICATION OF

ELOCATION OR

HARING

RANSITION

LANS

.—

‘‘(1) D

EVELOPMENT OF TRANSITION PLAN BY FEDERAL

ENTITY

.—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 for the implementation by

such entity of the relocation or sharing arrangement. The NTIA

shall specify, after public input, a common format for all Federal

entities to follow in preparing transition plans under this para-

graph.

‘‘(2) C

ONTENTS OF TRANSITION PLAN

.—The transition plan

required by paragraph (1) shall include the following informa-

tion:

‘‘(A) The use by the Federal entity of the eligible fre-

quencies to be auctioned, current as of the date of the

submission of the plan.

‘‘(B) The geographic location of the facilities or systems

of the Federal entity that use such frequencies.

‘‘(C) The frequency bands used by such facilities or

systems, described by geographic location.

‘‘(D) The steps to be taken by the Federal entity to

relocate its spectrum use from such frequencies or to share

such frequencies, including timelines for specific geographic

locations in sufficient detail to indicate when use of such

frequencies at such locations will be discontinued by the

Federal entity or shared between the Federal entity and

non-Federal users.

‘‘(E) The specific interactions between the eligible Fed-

eral entity and the NTIA needed to implement the transi-

tion plan.

‘‘(F) The name of the officer or employee of the Federal

entity who is responsible for the relocation or sharing

efforts of the entity and who is authorized to meet and

negotiate with non-Federal users regarding the transition.

‘‘(G) The plans and timelines of the Federal entity

for—

‘‘(i) using funds received from the Spectrum Reloca-

tion Fund established by section 118;

Public input.

Deadline.

Termination.

Determination.

Termination.

Notification.

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126 STAT. 249 PUBLIC LAW 112–96—FEB. 22, 2012

‘‘(ii) procuring new equipment and additional per-

sonnel needed for relocation or sharing;

‘‘(iii) field-testing and deploying new equipment

needed for relocation or sharing; and

‘‘(iv) hiring and relying on contract personnel, if

any, needed for relocation or sharing.

‘‘(H) Factors that could hinder fulfillment of the transi-

tion plan by the Federal entity.

‘‘(3) T

ECHNICAL PANEL

.—

‘‘(A) E

STABLISHMENT

.—There is established within the

NTIA a panel to be known as the Technical Panel.

‘‘(B) M

EMBERSHIP

.—

‘‘(i) N

UMBER AND APPOINTMENT

.—The Technical

Panel shall be composed of 3 members, to be appointed

as follows:

‘‘(I) One member to be appointed by the

Director of the Office of Management and Budget

(in this subsection referred to as ‘OMB’).

‘‘(II) One member to be appointed by the

Assistant Secretary.

‘‘(III) One member to be appointed by the

Chairman of the Commission.

‘‘(ii) Q

UALIFICATIONS

.—Each member of the Tech-

nical Panel shall be a radio engineer or a technical

expert.

‘‘(iii) I

NITIAL APPOINTMENT

.—The initial members

of the Technical Panel shall be appointed not later

than 180 days after the date of the enactment of the

Middle Class Tax Relief and Job Creation Act of 2012.

‘‘(iv) T

ERMS

.—The term of a member of the Tech-

nical Panel shall be 18 months, and no individual

may serve more than 1 consecutive term.

‘‘(v) V

ACANCIES

.—Any member appointed to fill a

vacancy occurring before the expiration of the term

for which the member’s predecessor was appointed

shall be appointed only for the remainder of that term.

A member may serve after the expiration of that mem-

ber’s term until a successor has taken office. A vacancy

shall be filled in the manner in which the original

appointment was made.

‘‘(vi) N

O COMPENSATION

.—The members of the

Technical Panel shall not receive any compensation

for service on the Technical Panel. If any such member

is an employee of the agency of the official that

appointed such member to the Technical Panel, com-

pensation in the member’s capacity as such an

employee shall not be considered compensation under

this clause.

‘‘(C) A

DMINISTRATIVE SUPPORT

.—The NTIA shall pro-

vide the Technical Panel with the administrative support

services necessary to carry out its duties under this sub-

section and subsection (i).

‘‘(D) R

EGULATIONS

.—Not later than 180 days after the

date of the enactment of the Middle Class Tax Relief and

Job Creation Act of 2012, the NTIA shall, after public

notice and comment and subject to approval by the Director

Deadline.

Notice.

Public comment.

Deadline.

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126 STAT. 250 PUBLIC LAW 112–96—FEB. 22, 2012

of OMB, adopt regulations to govern the workings of the

Technical Panel.

‘‘(E) C

ERTAIN REQUIREMENTS INAPPLICABLE

.—The Fed-

eral Advisory Committee Act (5 U.S.C. App.) and sections

552 and 552b of title 5, United States Code, shall not

apply to the Technical Panel.

‘‘(4) R

EVIEW OF PLAN BY TECHNICAL PANEL

.—

‘‘(A) I

N GENERAL

.—Not later than 30 days after the

submission of the plan under paragraph (1), the Technical

Panel shall submit to the NTIA and to the Federal entity

a report on the sufficiency of the plan, including whether

the plan includes the information required by paragraph

(2) and an assessment of the reasonableness of the proposed

timelines and estimated relocation or sharing costs,

including the costs of any proposed expansion of the

capabilities of a Federal system in connection with reloca-

tion or sharing.

‘‘(B) I

NSUFFICIENCY OF PLAN

.—If the Technical Panel

finds the plan insufficient, the Federal entity shall, not

later than 90 days after the submission of the report by

the Technical Panel under subparagraph (A), submit to

the Technical Panel a revised plan. Such revised plan shall

be treated as a plan submitted under paragraph (1).

‘‘(5) P

UBLICATION OF TRANSITION PLAN

.—Not later than 120

days before the commencement of the auction described in

paragraph (1), the NTIA shall make the transition plan publicly

available on its website.

‘‘(6) U

PDATES OF TRANSITION PLAN

.—As the Federal entity

implements the transition plan, it shall periodically update

the plan to reflect any changed circumstances, including

changes in estimated relocation or sharing costs or the timeline

for relocation or sharing. The NTIA shall make the updates

available on its website.

‘‘(7) C

LASSIFIED AND OTHER SENSITIVE INFORMATION

.—

‘‘(A) C

LASSIFIED INFORMATION

.—If any of the informa-

tion required to be included in the transition plan of a

Federal entity is classified information (as defined in sec-

tion 798(b) of title 18, United States Code), the entity

shall—

‘‘(i) include in the plan—

‘‘(I) an explanation of the exclusion of any

such information, which shall be as specific as

possible; and

‘‘(II) all relevant non-classified information

that is available; and

‘‘(ii) discuss as a factor under paragraph (2)(H)

the extent of the classified information and the effect

of such information on the implementation of the

relocation or sharing arrangement.

‘‘(B) R

EGULATIONS

.—Not later than 180 days after the

date of the enactment of the Middle Class Tax Relief and

Job Creation Act of 2012, the NTIA, in consultation with

the Director of OMB and the Secretary of Defense, shall

adopt regulations to ensure that the information publicly

released under paragraph (5) or (6) does not contain classi-

fied information or other sensitive information.

‘‘(i) D

ISPUTE

ESOLUTION

ROCESS

.—

Deadlines.

Deadline.

Public

information.

Web posting.

Deadline.

Reports.

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126 STAT. 251 PUBLIC LAW 112–96—FEB. 22, 2012

‘‘(1) I

N GENERAL

.—If a dispute arises between a Federal

entity and a non-Federal user regarding the execution, timing,

or cost of the transition plan submitted by the Federal entity

under subsection (h)(1), the Federal entity or the non-Federal

user may request that the NTIA establish a dispute resolution

board to resolve the dispute.

‘‘(2) E

STABLISHMENT OF BOARD

.—

‘‘(A) I

N GENERAL

.—If the NTIA receives a request under

paragraph (1), it shall establish a dispute resolution board.

‘‘(B) M

EMBERSHIP AND APPOINTMENT

.—The dispute

resolution board shall be composed of 3 members, as fol-

lows:

‘‘(i) A representative of the Office of Management

and Budget (in this subsection referred to as ‘OMB’),

to be appointed by the Director of OMB.

‘‘(ii) A representative of the NTIA, to be appointed

by the Assistant Secretary.

‘‘(iii) A representative of the Commission, to be

appointed by the Chairman of the Commission.

‘‘(C) C

HAIR

.—The representative of OMB shall be the

Chair of the dispute resolution board.

‘‘(D) V

ACANCIES

.—Any vacancy in the dispute resolu-

tion board shall be filled in the manner in which the

original appointment was made.

‘‘(E) N

O COMPENSATION

.—The members of the dispute

resolution board shall not receive any compensation for

service on the board. If any such member is an employee

of the agency of the official that appointed such member

to the board, compensation in the member’s capacity as

such an employee shall not be considered compensation

under this subparagraph.

‘‘(F) T

ERMINATION OF BOARD

.—The dispute resolution

board shall be terminated after it rules on the dispute

that it was established to resolve and the time for appeal

of its decision under paragraph (7) has expired, unless

an appeal has been taken under such paragraph. If such

an appeal has been taken, the board shall continue to

exist until the appeal process has been exhausted and

the board has completed any action required by a court

hearing the appeal.

‘‘(3) P

ROCEDURES

.—The dispute resolution board shall meet

simultaneously with representatives of the Federal entity and

the non-Federal user to discuss the dispute. The dispute resolu-

tion board may require the parties to make written submissions

to it.

‘‘(4) D

EADLINE FOR DECISION

.—The dispute resolution board

shall rule on the dispute not later than 30 days after the

request was made to the NTIA under paragraph (1).

‘‘(5) A

SSISTANCE FROM TECHNICAL PANEL

.—The Technical

Panel established under subsection (h)(3) shall provide the

dispute resolution board with such technical assistance as the

board requests.

‘‘(6) A

DMINISTRATIVE SUPPORT

.—The NTIA shall provide

the dispute resolution board with the administrative support

services necessary to carry out its duties under this subsection.

‘‘(7) A

PPEALS

.—A decision of the dispute resolution board

may be appealed to the United States Court of Appeals for

Deadline.

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126 STAT. 252 PUBLIC LAW 112–96—FEB. 22, 2012

the District of Columbia Circuit by filing a notice of appeal

with that court not later than 30 days after the date of such

decision. Each party shall bear its own costs and expenses,

including attorneys’ fees, for any appeal under this paragraph.

‘‘(8) R

EGULATIONS

.—Not later than 180 days after the date

of the enactment of the Middle Class Tax Relief and Job Cre-

ation Act of 2012, the NTIA shall, after public notice and

comment and subject to approval by OMB, adopt regulations

to govern the working of any dispute resolution boards estab-

lished under paragraph (2)(A) and the role of the Technical

Panel in assisting any such board.

‘‘(9) C

ERTAIN REQUIREMENTS INAPPLICABLE

.—The Federal

Advisory Committee Act (5 U.S.C. App.) and sections 552 and

552b of title 5, United States Code, shall not apply to a dispute

resolution board established under paragraph (2)(A).

‘‘(j) R

ELOCATION

RIORITIZED

VER

HARING

.—

‘‘(1) I

N GENERAL

.—In evaluating a band of frequencies for

possible reallocation for exclusive non-Federal use or shared

use, the NTIA shall give priority to options involving realloca-

tion of the band for exclusive non-Federal use and shall choose

options involving shared use only when it determines, in con-

sultation with the Director of the Office of Management and

Budget, that relocation of a Federal entity from the band is

not feasible because of technical or cost constraints.

‘‘(2) N

OTIFICATION OF CONGRESS WHEN SHARING CHOSEN

.—

If the NTIA determines under paragraph (1) that relocation

of a Federal entity from the band is not feasible, the NTIA

shall notify the Committee on Commerce, Science, and

Transportation of the Senate and the Committee on Energy

and Commerce of the House of Representatives of the deter-

mination, including the specific technical or cost constraints

on which the determination is based.’’.

(b) C

ONFORMING

MENDMENT

.—Section 309(j) of the Commu-

nications Act of 1934 is further amended by striking ‘‘relocation

costs’’ each place it appears and inserting ‘‘relocation or sharing

costs’’.

SEC. 6702. SPECTRUM RELOCATION FUND.

Section 118 of the National Telecommunications and Informa-

tion Administration Organization Act (47 U.S.C. 928) is amended—

(1) by striking ‘‘relocation costs’’ each place it appears and

inserting ‘‘relocation or sharing costs’’;

(2) by amending subsection (c) to read as follows:

‘‘(c) U

SE OF

UNDS

.—The amounts in the Fund from auctions

of eligible frequencies are authorized to be used to pay relocation

or sharing costs of an eligible Federal entity incurring such costs

with respect to relocation from or sharing of those frequencies.’’;

(3) in subsection (d)—

(A) in paragraph (2)—

(i) in subparagraph (A), by inserting ‘‘or sharing’’

before the semicolon;

(ii) in subparagraph (B), by inserting ‘‘or sharing’’

before the period at the end;

(iii) by redesignating subparagraphs (A) and (B)

as subparagraphs (B) and (C), respectively; and

(iv) by inserting before subparagraph (B), as so

redesignated, the following:

47 USC 309.

Determination.

Deadline.

Notice.

Public comments.

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126 STAT. 253 PUBLIC LAW 112–96—FEB. 22, 2012

‘‘(A) unless the eligible Federal entity has submitted

a transition plan to the NTIA as required by paragraph

(1) of section 113(h), the Technical Panel has found such

plan sufficient under paragraph (4) of such section, and

the NTIA has made available such plan on its website

as required by paragraph (5) of such section;’’;

(B) by striking paragraph (3); and

‘‘(3) T

RANSFERS FOR PRE

AUCTION COSTS

.—

‘‘(A) I

N GENERAL

.—Subject to subparagraph (B), the

Director of OMB may transfer to an eligible Federal entity,

at any time (including prior to a scheduled auction), such

sums as may be available in the Fund to pay relocation

or sharing costs related to pre-auction estimates or

research, as such costs are described in section

113(g)(3)(A)(iii).

‘‘(B) N

OTIFICATION

.—No funds may be transferred

pursuant to subparagraph (A) unless—

‘‘(i) the notification provided under paragraph

(2)(C) includes a certification from the Director of OMB

that—

‘‘(I) funds transferred before an auction will

likely allow for timely implementation of relocation

or sharing, thereby increasing net expected auction

proceeds by an amount not less than the time

value of the amount of funds transferred; and

‘‘(II) the auction is intended to occur not later

than 5 years after transfer of funds; and

‘‘(ii) the transition plan submitted by the eligible

Federal entity under section 113(h)(1) provides—

‘‘(I) to the fullest extent possible, for sharing

and coordination of eligible frequencies with non-

Federal users, including reasonable accommoda-

tion by the eligible Federal entity for the use of

eligible frequencies by non-Federal users during

the period that the entity is relocating its spectrum

uses (in this clause referred to as the ‘transition

period’);

‘‘(II) for non-Federal users to be able to use

eligible frequencies during the transition period

in geographic areas where the eligible Federal

entity does not use such frequencies;

‘‘(III) that the eligible Federal entity will,

during the transition period, make itself available

for negotiation and discussion with non-Federal

users not later than 30 days after a written request

therefor; and

‘‘(IV) that the eligible Federal entity will,

during the transition period, make available to

a non-Federal user with appropriate security clear-

ances any classified information (as defined in sec-

tion 798(b) of title 18, United States Code)

regarding the relocation process, on a need-to-know

basis, to assist the non-Federal user in the reloca-

tion process with such eligible Federal entity or

other eligible Federal entities.

‘‘(C) A

PPLICABILITY TO CERTAIN COSTS

.—

Deadline.

Certification.

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126 STAT. 254 PUBLIC LAW 112–96—FEB. 22, 2012

‘‘(i) I

N GENERAL

.—The Director of OMB may

transfer under subparagraph (A) not more than

$10,000,000 for costs incurred after June 28, 2010,

but before the date of the enactment of the Middle

Class Tax Relief and Job Creation Act of 2012.

‘‘(ii) S

UPPLEMENT NOT SUPPLANT

.—Any amounts

transferred by the Director of OMB pursuant to clause

(i) shall be in addition to any amounts that the Director

of OMB may transfer for costs incurred on or after

the date of the enactment of the Middle Class Tax

Relief and Job Creation Act of 2012.

‘‘(4) R

EVERSION OF UNUSED FUNDS

.—Any amounts in the

Fund that are remaining after the payment of the relocation

or sharing costs that are payable from the Fund shall revert

to and be deposited in the general fund of the Treasury, for

the sole purpose of deficit reduction, not later than 8 years

after the date of the deposit of such proceeds to the Fund,

unless within 60 days in advance of the reversion of such

funds, the Director of OMB, in consultation with the NTIA,

notifies the congressional committees described in paragraph

(2)(C) that such funds are needed to complete or to implement

current or future relocation or sharing arrangements.’’;

(4) in subsection (e)—

(A) in paragraph (1)(B)—

(i) in clause (i), by striking ‘‘subsection (d)(2)(A)’’

and inserting ‘‘subsection (d)(2)(B)’’; and

(ii) in clause (ii), by striking ‘‘subsection (d)(2)(B)’’

and inserting ‘‘subsection (d)(2)(C)’’; and

(B) in paragraph (2)—

(i) by striking ‘‘entity’s relocation’’ and inserting

‘‘relocation of the entity or implementation of the

sharing arrangement by the entity’’;

(ii) by inserting ‘‘or the implementation of such

arrangement’’ after ‘‘such relocation’’; and

(iii) by striking ‘‘subsection (d)(2)(A)’’ and inserting

‘‘subsection (d)(2)(B)’’; and

(5) by adding at the end the following:

‘‘(f) A

DDITIONAL

AYMENTS

ROM

UND

.—

‘‘(1) A

MOUNTS AVAILABLE

.—Notwithstanding subsections (c)

through (e), after the date of the enactment of the Middle

Class Tax Relief and Job Creation Act of 2012, there are appro-

priated from the Fund and available to the Director of OMB

for use in accordance with paragraph (2) not more than 10

percent of the amounts deposited in the Fund from auctions

occurring after such date of enactment of licenses for the use

of spectrum vacated by eligible Federal entities.

‘‘(2) U

SE OF AMOUNTS

.—

‘‘(A) I

N GENERAL

.—The Director of OMB, in consulta-

tion with the NTIA, may use amounts made available

under paragraph (1) to make payments to eligible Federal

entities that are implementing a transition plan submitted

under section 113(h)(1) in order to encourage such entities

to complete the implementation more quickly, thereby

encouraging timely access to the eligible frequencies that

are being reallocated for exclusive non-Federal use or

shared use.

Appropriation

authorization.

Deadline.

Time period.

Notification.

Deadline.

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126 STAT. 255 PUBLIC LAW 112–96—FEB. 22, 2012

‘‘(B) C

ONDITIONS

.—In the case of any payment by the

Director of OMB under subparagraph (A)—

‘‘(i) such payment shall be based on the market

value of the eligible frequencies, the timeliness with

which the eligible Federal entity clears its use of such

frequencies, and the need for such frequencies in order

for the entity to conduct its essential missions;

‘‘(ii) the eligible Federal entity shall use such pay-

ment for the purposes specified in clauses (i) through

(v) of section 113(g)(3)(A) to achieve comparable capa-

bility of systems affected by the reallocation of eligible

frequencies from Federal use to exclusive non-Federal

use or to shared use;

‘‘(iii) such payment may not be made if the amount

remaining in the Fund after such payment will be

less than 10 percent of the winning bids in the auction

of the spectrum with respect to which the Federal

entity is incurring relocation or sharing costs; and

‘‘(iv) such payment may not be made until 30 days

after the Director of OMB has notified the congres-

sional committees described in subsection (d)(2)(C).

‘‘(g) R

ESTRICTION ON

SE OF

UNDS

.—No amounts in the Fund

on the day before the date of the enactment of the Middle Class

Tax Relief and Job Creation Act of 2012 may be used for any

purpose except—

‘‘(1) to pay the relocation or sharing costs incurred by

eligible Federal entities in order to relocate from the frequencies

the auction of which generated such amounts; or

‘‘(2) to pay relocation or sharing costs related to pre-auction

estimates or research, in accordance with subsection (d)(3).’’.

SEC. 6703. NATIONAL SECURITY AND OTHER SENSITIVE INFORMATION.

Part B of title I 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. 119. NATIONAL SECURITY AND OTHER SENSITIVE INFORMATION.

‘‘(a) D

ETERMINATION

.—If the head of an Executive agency (as

defined in section 105 of title 5, United States Code) determines

that public disclosure of any information contained in a notification

or report required by section 113 or 118 would reveal classified

national security information, or other information for which there

is a legal basis for nondisclosure and the public disclosure of which

would be detrimental to national security, homeland security, or

public safety or would jeopardize a law enforcement investigation,

the head of the Executive agency shall notify the Assistant Sec-

retary of that determination prior to the release of such information.

‘‘(b) I

NCLUSION IN

NNEX

.—The head of the Executive agency

shall place the information with respect to which a determination

was made under subsection (a) in a separate annex to the notifica-

tion or report required by section 113 or 118. The annex shall

be provided to the subcommittee of primary jurisdiction of the

congressional committee of primary jurisdiction in accordance with

appropriate national security stipulations but shall not be disclosed

to the public or provided to any unauthorized person through any

means.’’.

Notification.

47 USC 929.

Time period.

Notification.

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126 STAT. 256 PUBLIC LAW 112–96—FEB. 22, 2012

LEGISLATIVE HISTORY—H.R. 3630:

HOUSE REPORTS: No. 112–399 (Comm. of Conference).

CONGRESSIONAL RECORD:

Vol. 157 (2011): Dec. 13, considered and passed House.

Dec. 17, considered and passed Senate, amended.

Vol. 158 (2012): Feb. 17, House and Senate agreed to conference report.

TITLE VII—MISCELLANEOUS

PROVISIONS

SEC. 7001. REPEAL OF CERTAIN SHIFTS IN THE TIMING OF CORPORATE

ESTIMATED TAX PAYMENTS.

The following provisions of law (and any modification of any

such provision which is contained in any other provision of law)

shall not apply with respect to any installment of corporate esti-

mated tax:

(1) Section 201(b) of the Corporate Estimated Tax Shift

Act of 2009.

(2) Section 561 of the Hiring Incentives to Restore Employ-

ment Act.

(3) Section 505 of the United States-Korea Free Trade

Agreement Implementation Act.

(4) Section 603 of the United States-Colombia Trade Pro-

motion Agreement Implementation Act.

(5) Section 502 of the United States-Panama Trade Pro-

motion Agreement Implementation Act.

SEC. 7002. REPEAL OF REQUIREMENT RELATING TO TIME FOR REMIT-

TING CERTAIN MERCHANDISE PROCESSING FEES.

(a) R

EPEAL

.—The Trade Adjustment Assistance Extension Act

of 2011 (title II of Public Law 112–40; 125 Stat. 402) is amended

by striking section 263.

(b) C

LERICAL

MENDMENT

.—The table of contents for such Act

is amended by striking the item relating to section 263.

SEC. 7003. TREATMENT FOR PAYGO PURPOSES.

The budgetary effects of this Act shall not be entered on either

PAYGO scorecard maintained pursuant to section 4(d) of the Statu-

tory Pay-As-You-Go Act of 2010.

Approved February 22, 2012.

19 USC 58c note.

26 USC 6655

note.

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