Sec.  90.529   State License.

   (a) Narrowband channels designated as state channels in  Sec. 90.531 are licensed
   to each state (as defined in  Sec. 90.7) as follows:

   (1) Each state that chooses to take advantage of the spectrum designated as
   state channels must file an application for up to 2.4 megahertz of this
   spectrum no later than December 31, 2001. For purposes of this section, the
   elected chief executive (Governor) of each state, or his or her designee,
   shall be deemed the person authorized to apply for the State License.

   (2) What ever part of this 2.4 megahertz that a state has not applied for by
   December 31, 2001, will revert to General Use and be administered by the
   relevant RPC (or RPCs in the instances of states that encompass multiple
   RPCs).

   (b) Each state license will be granted subject to the condition that the
   state certifies on or before each applicable benchmark date that it is:

   (1) providing or prepared to provide “substantial service” to one-third of
   their population or territory by January 1, 2012, i.e., within five years of
   the date that incumbent broadcasters are required to relocate to other
   portions of the spectrum;

   (2) providing or prepared to provide “substantial service” to two-thirds of
   their population or territory by January 1, 2017, i.e., within ten years of
   the date that incumbent broadcasters are required to relocate to other
   portions of the spectrum.

   (c)  The Commission will deem a state “prepared to provide substantial
   service” if the licensee certifies that a radio system has been approved and
   funded for implementation by the deadline date. “Substantial service” refers
   to the construction and operation of 700 MHz facilities by public safety
   entities providing service which is sound, favorable , and substantially
   above  a  level of mediocre service which just might minimally warrant
   renewal.

   (d) If a state licensee fails to meet any condition of the grant the state
   license is modified automatically to the frequencies and geographic areas
   where the state certifies that it is providing substantial service.

   (e)  Any  recovered state license spectrum will revert to General Use.
   However,  spectrum  licensed  to a state under a state license remains
   unavailable for reassignment to other applicants until the Commission's
   database reflects the parameters of the modified state license.

   [ 65 FR 66654 , Nov. 7, 2000]