There is NO requirement by DHS, the FCC or anyone for agencies to move to 700,800,900mhz.
This is common urban legend pushed by various vendors to sell radios.
I can assure you it is not true.
The ONLY mandate in effect for any licensees is the narrowbanding mandate by the FCC for ALL (but a very few) users of part 90 freqs in the VHF and UHF bands.
Only about 60% of the effected agencies in Texas have done so and the deadline is 12 midnight, Dec 31st, 2012.
The wait for processing at the FCC for applications is about 90 days now and will only get worse.
Actually very few agencies have received grants. The only ones that have used them to buy new equipment and not for the narrowbanding.
Congress is trying to extend the deadline and get some grants to do the narrowbanding.
Agencies and users (this effects public safety and commercial both) have know since 1996 this was coming and have waited until now to panic react.
I am eyebrow deep in this stuff and deal with it ever day. It is going to be really interesting when on Jan 1st, 2013 a bunch of folks licenses are no longer valid.