[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2512 Introduced in House (IH)]






109th CONGRESS
  1st Session
                                H. R. 2512

 To provide for the establishment of a Digital Opportunity Investment 
                                 Trust.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                              May 19, 2005

 Mr. Regula (for himself, Mr. Markey, and Mr. Gillmor) introduced the 
   following bill; which was referred to the Committee on Energy and 
    Commerce, and in addition to the Committee on Education and the 
 Workforce, for a period to be subsequently determined by the Speaker, 
 in each case for consideration of such provisions as fall within the 
                jurisdiction of the committee concerned

_______________________________________________________________________

                                 A BILL


 
 To provide for the establishment of a Digital Opportunity Investment 
                                 Trust.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Digital Opportunity Investment Trust 
Act''.

SEC. 2. FINDINGS.

    The Congress finds the following:
            (1) The United States stands to benefit in the global 
        economy by reallocating additional airwave assets to the 
        private sector for innovative wireless services.
            (2) Congress previously mandated reallocation of over 200 
        megahertz of frequency spectrum from Government use to the 
        Federal Communications Commission for private sector licensing.
            (3) This previous reallocation spurred deployment of new 
        digital wireless services, Government action that helped to 
        lower prices, create jobs, and increase consumer choice.
            (4) In addition, the use of auctions as an efficient 
        mechanism to assign licenses generated funds that were 
        deposited for general revenue purposes in the United States 
        Treasury.
            (5) Auction proceeds from the competitive bidding for 
        wireless licenses can additionally be utilized to foster the 
        use of educational technology, promote deployment of public 
        telecommunications infrastructure, and establish a self-
        sustaining trust fund for grants to transform education, skills 
        training, and lifelong learning.
            (6) While more and more Americans are utilizing electronic 
        tools in every aspect of their lives, a digital divide still 
        remains in many areas of our country and many citizens lack the 
        skill set necessary to compete for jobs in a 21st Century 
        digital economy.
            (7) Educational preparedness will be critical if the United 
        States is to have a technologically savvy workforce to fuel 
        growth of our high tech economy in the global marketplace.
            (8) Utilizing spectrum auction proceeds to enhance the use 
        of educational technology and to increase public access to 
        advanced telecommunications underscores our commitment to 
        ensuring that all of our citizens are prepared for the new 
        economy.
            (9) The creation of a self-sustaining mechanism to make 
        available annual funding for needed public access and 
        educational technology grants is an appropriate use of revenue 
        generated from corporate use of the public's airwaves and 
        consistent with the public interest.
            (10) A policy that promotes investment in wireless 
        technology and services along with a concomitant investment in 
        the educational, cultural, and telecommunications resources 
        available to all our citizens is in the national economic 
        interest of the United States.

SEC. 3. ESTABLISHMENT OF TRUST FUND.

    (a) Amendment.--Part I of title III of the Communications Act of 
1934 is amended by inserting after section 309 (47 U.S.C. 309) the 
following new section:

``SEC. 309A. DIGITAL OPPORTUNITY INVESTMENT TRUST FUND.

    ``(a) Establishment.--There is established a nonprofit corporation 
to be known as the `Digital Opportunity Investment Trust' (referred to 
in this Act as the `Trust') which shall not be an agency or 
establishment of the United States Government. The Trust shall be 
subject to the provisions of this section, and, to the extent 
consistent with this section, to theDistrict of Columbia Nonprofit 
Corporation Act (D.C. Code, section 29-501 et seq.).
    ``(b) Funding.--
            ``(1) In general.--There is established in the Treasury a 
        separate fund to be known as the `Digital Opportunity 
        Investment Trust Fund' (referred to in this Act as the `Trust 
        Fund'). The Trust Fund shall contain such amounts as are 
        credited to the Trust Fund under paragraph (2) and any interest 
        earned on the investment of amounts in the Trust Fund under 
        subsection (g).
            ``(2) Deposit of funds.--The Trust Fund shall be credited 
        with the amounts specified in--
                    ``(A) section 309(j)(8)(E) of this Act; and
                    ``(B) section 118(d)(3) of the National 
                Telecommunications and Information Administration 
                Organization Act.
    ``(c) Board of Directors; Functions, and Duties.--
            ``(1) In general.--A board of directors of the Trust 
        (referred to in this Act as the `Board') shall be established 
        to oversee the administration of the Trust. Such Board shall 
        consist of 9 members to be appointed by the President, who--
                    ``(A) reflect representation from the public and 
                private sectors;
                    ``(B) are not regular full-time employees of the 
                Federal Government;
                    ``(C) are eminent in such fields as 
                telecommunications, information technology, labor and 
                workforce development, education, cultural and civic 
                affairs, or the arts and humanities; and
                    ``(D) shall provide, as nearly as practicable, a 
                broad representation of various regions of the United 
                States, various professions and occupations, and 
                various kinds of talent and experience appropriate to 
                the functions and responsibilities of the Trust.
            ``(2) Recommendations.--The Majority Leader of the Senate, 
        the Minority Leader of the Senate, the Speaker of the House of 
        Representatives, and the Minority Leader of the House of 
        Representatives shall submit to the President recommendations 
        of individuals to serve as members of the Board.
            ``(3) Terms of appointment.--
                    ``(A) Date.--Members of the Board shall be 
                appointed not later than 90 days after the date of 
                enactment of this Act.
                    ``(B) Terms.--
                            ``(i) In general.--Except as provided in 
                        clause (ii), each member of the Board shall be 
                        appointed for a 3-year term with terms set to 
                        expire in non-Federal election years.
                            ``(ii) Staggered terms.--With respect to 
                        the initial members of the Board--
                                    ``(I) 3 members shall serve for a 
                                term of 3 years;
                                    ``(II) 3 members shall serve for a 
                                term of 2 years; and
                                    ``(III) 3 members shall serve for a 
                                term of 1 year.
                    ``(C) Vacancies.--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.
            ``(4) Chair and vice-chair.--
                    ``(A) Selection.--The Board shall select, from 
                among the members of the Board, an individual to serve 
                for a 2-year term as Chair of the Board and an 
                individual to serve for a 2-year term as vice-Chair of 
                the Board.
                    ``(B) Consecutive terms.--An individual may not 
                serve for more than 3 consecutive terms as Chair of the 
                Board.
            ``(5) Meetings.--
                    ``(A) First meeting.--Not later than 30 days after 
                the date on which all of the members of the Board have 
                been appointed by the President, the Chair of the Board 
                shall call the first meeting of the Board.
                    ``(B) Quorum.--A majority of the members of the 
                Board shall constitute a quorum, but a lesser number of 
                members may hold hearings.
            ``(6) Board personnel matters.--
                    ``(A) Compensation.--Members of the Board shall not 
                receive compensation, allowances, or benefits by reason 
                of the members' service on the Board.
                    ``(B) Travel expenses.--The members of the 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 Board.
                    ``(C) Salaries and expenses.--No officer or 
                employee of the Trust may be compensated by the Trust 
                at an annual rate of pay which exceeds the rate of 
                basic pay in effect for level I of the Executive 
                Schedule under section 5312 of Title 5, United States 
                Code.
            ``(7) Director.--A majority of the members of the Board 
        shall select a Director of the Trust who shall serve at the 
        discretion of the Board and shall be responsible for 
        instituting procedures to carry out the policies and priorities 
        established by the Board, and for hiring all personnel of the 
        Trust.
            ``(8) Additional requirements and limitations.--
                    ``(A) Fidelity.--No individual other than a citizen 
                of the United States may be an officer of the Trust. No 
                officer of the Trust may receive any salary or other 
                compensation (except for compensation for services on 
                boards of directors of other organizations that do not 
                receive funds from the Trust, on committees of such 
                boards, and in similar activities for such 
                organizations) from any sources other than the Trust 
                for services rendered during the period of his or her 
                employment by the Trust. Service by any officer on 
                boards of directors of other organizations, on 
                committees of such boards, and in similar activities 
                for such organizations shall be subject to annual 
                advance approval by the Board and subject to the 
                provisions of the Trust's Statement of Ethical Conduct. 
                All officers shall serve at the pleasure of the Board.
                    ``(B) Nonpartisanship.--No political test or 
                qualification shall be used in selecting, appointing, 
                promoting, or taking other personnel actions with 
                respect to officers, agents, and employees of the 
                Trust. The Trust may not contribute to or otherwise 
                support any political party or candidate for elective 
                public office.
                    ``(C) Nonprofit nature of the trust.--The Trust 
                shall have no power to issue any shares of stock, or to 
                declare or pay any dividends. No part of the income or 
                assets of the Trust shall inure to the benefit of any 
                director, officer, employee, or any other individual 
                except as salary or reasonable compensation for 
                services.
    ``(d) Trust Fund Uses.--
            ``(1) Uses of funds.--To achieve the objectives of this 
        Act, the Director of the Trust, after consultation with the 
        Board, may use Trust funds--
                    ``(A) to help underwrite the digitization of the 
                collections in the Nation's universities, museums, 
                libraries, public broadcasting stations, and cultural 
                institutions;
                    ``(B) to support basic and applied research, 
                development, and demonstrations of innovative learning 
                and assessment systems as well as the components and 
                tools needed to create them; and
                    ``(C) to use the research results developed under 
                subparagraph (B) to create prototype applications 
                designed to meet learning objectives in a variety of 
                subject areas and designed for learners with many 
                different educational backgrounds, including--
                            ``(i) strengthening instruction in reading, 
                        science, mathematics, history, and the arts in 
                        elementary and secondary schools, particularly 
                        in academically struggling school districts;
                            ``(ii) providing the training needed for 
                        people now in the workplace to advance in a 
                        constantly changing work environment;
                            ``(iii) training needed for teachers to 
                        utilize new tools and technologies in the 
                        classroom; and
                            ``(iv) instruction in community centers, 
                        libraries, community colleges, universities, 
                        other institutions of higher education, and 
                        through public television and radio stations;
                            ``(v) supporting projects that enhance the 
                        access of individuals with disabilities to 
                        advanced telecommunications services; and
                            ``(vi) supporting after-school programs 
                        with youths focused on computer literacy and 
                        education.
            ``(2) Contracts and grants.--
                    ``(A) In general.--In order to carry out the 
                activities described in paragraph (1), the Director of 
                the Trust, with the agreement of a majority of the 
                members of the Board, may award contracts and grants to 
                nonprofit organizations and public institutions (with 
                or without private partners).
                    ``(B) Public domain.--
                            ``(i) In general.--The research and 
                        development properties and materials associated 
                        with a project in which a majority of the 
                        funding used to carry out the project is from a 
                        grant or contract under this Act shall be 
                        freely and nonexclusively available to the 
                        general public in a timely manner.
                            ``(ii) Exemption.--The Director of the 
                        Trust may exempt specific projects from the 
                        requirement of clause (i) if the Director of 
                        the Trust and a majority of the members of the 
                        Board determine that the general public will 
                        benefit significantly due to the project not 
                        being freely and nonexclusively available to 
                        the general public in a timely manner.
                    ``(C) Peer review.--To the extent practicable, 
                proposals for grants or contracts shall be evaluated on 
                the basis of comparative merit by panels of experts who 
                represent diverse interests and perspectives, and who 
                are appointed by the Director of the Trust from 
                recommendations from the fields served and from the 
                Board of Directors.
    ``(e) Special Account for Distribution to Educational Television 
Stations.--
            ``(1) Reservation.--An amount equivalent to 21 percent of 
        the interest derived from the investment proceeds of the 
        amounts deposited in the Trust Fund under section 309(j)(8)(E) 
        of this Act shall be reserved in a special account within the 
        Trust Fund for distribution on a regular basis to those 
        noncommercial educational television broadcast stations (as 
        defined in section 397(6) of this Act that are qualified to 
        receive grants from the Corporation for Public Broadcasting 
        pursuant to section 396(k)(6)(B) of this Act and to the Public 
        Broadcasting Service in partnership with such stations.
            ``(2) Responsibility for distribution.--The Director of the 
        Trust shall--
                    ``(A) through a special contract, designate the 
                Corporation for Public Broadcasting as the sole agent 
                responsible for the distribution of funds under this 
                section; and
                    ``(B) transfer the funds referred to in paragraph 
                (1) to the Corporation for Public Broadcasting on a 
                regular basis.
            ``(3) Grants.--In making the distribution referred to in 
        paragraph (1), the Corporation for Public Broadcasting shall 
        utilize a competitive grant application process that is 
        governed by criteria that ensures that funds are directed to 
        the creation of locally delivered digital education and 
        learning services, ensures the diversity of licensee types, and 
        ensures that geographic service areas are adequately served. 
        The Corporation for Public Broadcasting shall develop such 
        criteria in consultation with public television licensee 
        permittees and representatives designated by their national 
        organizations.
    ``(f) Accountability and Reporting.--
            ``(1) Report.--
                    ``(A) In general.--Not later than April 30 of each 
                year, the Director of the Trust shall prepare a report 
                for the preceding fiscal year that contains the 
                information described in subparagraph (B).
                    ``(B) Contents.--A report under subparagraph (A) 
                shall include--
                            ``(i) a comprehensive and detailed report 
                        of the Trust's operations, activities, 
                        financial condition, and accomplishments, and 
                        such recommendations as the Director of the 
                        Trust determines appropriate;
                            ``(ii) a comprehensive and detailed 
                        inventory of funds distributed from the Trust 
                        during the fiscal year for which the report is 
                        being prepared; and
                            ``(iii) an independent audit of the Trust 
                        Fund's finances and operations, and of the 
                        implementation of the goals established by the 
                        Board.
                    ``(C) Statement of the board.--Each report under 
                subparagraph (A) shall include a statement from the 
                Board containing--
                            ``(i) a clear description of the plans and 
                        priorities of the Board for the subsequent 5-
                        year period for expenditures from the Trust 
                        Fund; and
                            ``(ii) an estimate of the funds that will 
                        be available for such expenditures from the 
                        Trust Fund.
                    ``(D) Submission to the president and congress.--A 
                report under this subsection shall be submitted to the 
                President and the Committee on Energy and Commerce of 
                the House of Representatives and the Committee on 
                Commerce, Science, and Transportation of the Senate.
            ``(2) Testimony.--The Director and principal officers of 
        the Trust shall testify before the appropriate committees of 
        Congress, upon request of such committees, with respect to--
                    ``(A) a report prepared under paragraph (1)(A); and
                    ``(B) any other matter that such committees may 
                determine appropriate.
    ``(g) Investment of Trust Funds.--
            ``(1) In general.--The Secretary of the Treasury, after 
        consultation with the Director of the Trust, shall invest the 
        funds of the Trust in interest-bearing obligations of the 
        United States or in obligations guaranteed as to both principal 
        and interest by the United States.
            ``(2) Expenditures.--
                    ``(A) In general.--The Director of the Trust shall 
                not undertake grant or contract activities under this 
                Act until the Trust has received the interest or other 
                proceeds from the investment of the Trust Funds for not 
                less than 1 year's duration. Thereafter, upon Board 
                approval of the annual budget of the Trust, the 
                Director of the Trust may commence such grant or 
                contract activities at the start of each fiscal year.
                    ``(B) Obligation of funds.--
                            ``(i) In general.--Except as provided in 
                        clauses (ii) and (iii), in awarding grants or 
                        contracts or making other expenditures under 
                        this Act, the Director of the Trust shall not 
                        obligate funds from the Trust that exceed the 
                        proceeds received from the investment of the 
                        funds in the Trust Fund during the preceding 
                        fiscal year.
                            ``(ii) Carry over.--Funds from the Trust 
                        Fund that are available for obligation for a 
                        fiscal year that are not obligated for such 
                        fiscal year shall remain available for 
                        obligation for the succeeding fiscal year.
                            ``(iii) Availability for audit.--A portion 
                        of the proceeds received from the investment of 
                        the funds in the Trust Fund during any fiscal 
                        year shall be available for the conduct of the 
                        audit for such fiscal year required by 
                        subsection (f)(1)(B)(iii).
    ``(h) Use of Funds Subject to Appropriations.--The authority to 
make grants or enter into contracts or otherwise to expend funds under 
this section is subject to such amounts as are provided in advance in 
appropriations Acts.''.
    (b) Conforming Amendments.--
            (1) Communications act of 1934.--Section 309(j)(8) of the 
        Communications Act of 1934 (47 U.S.C. 309(j)(8)) is amended--
                    (A) in subparagraph (A), by striking ``subparagraph 
                (B) or subparagraph (D)'' and inserting ``subparagraph 
                (B), (D), or (E)''; and
                    (B) by adding at the end the following new 
                subparagraph:
                    ``(E) Additional disposition.--Except as provided 
                in subparagraph (D), 30 percent of the cash proceeds of 
                each auction completed after September 30, 2007, and 
                through the last quarter of fiscal year 2027, shall be 
                deposited in the Digital Opportunity Trust Fund 
                established under section 309A of this Act, and shall 
                be available in accordance with that section.''.
            (2) NTIAO act.--Paragraph (3) of section 118(d) of the 
        National Telecommunications and Information Administration 
        Organization Act is amended to read as follows:
            ``(3) Transfer of unused funds.--Any auction proceeds in 
        the Fund that are remaining after the payment of the relocation 
        costs that are payable from the Fund shall, not later than 8 
        years after the date of the deposit of such proceeds to the 
        Relocation Trust Fund, be transferred to the Digital 
        Opportunity Trust Fund established under section 309A of this 
        Act, and shall be available in accordance with that section.''.
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