[Congressional Record Volume 151, Number 62 (Thursday, May 12, 2005)]
[Senate]
[Pages S5156-S5157]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. DODD (for himself, Ms. Snowe, Mr. Durbin, and Mr. Burns):
  S. 1023. A bill to provide for the establishment of a Digital 
Opportunity Investment Trust; to the Committee on Health, Education, 
Labor, and Pensions.
  Mr. DODD. Mr. President, I ask unanimous consent that the text of the 
bill be printed in the Record.
  There being no objection, the bill was ordered to be printed in the 
Record, as follows:

                                S. 1023

       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. ORGANIZATION.

       (a) In General.--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 the District 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 transferred to the Trust Fund under paragraph (2) and any 
     interest earned on the investment of amounts in the Trust 
     Fund under section 4.
       (2) Transfer of funds.--The Secretary of the Treasury shall 
     in each fiscal quarter through the last quarter of fiscal 
     year 2028, transfer from the General Fund of the Treasury to 
     the Trust Fund, an amount equal to 30 percent of the proceeds 
     received by the Federal Government during the preceding 
     fiscal quarter from any use (including any auction, sale, fee 
     derived from, or other revenue generated from) of the 
     electromagnetic spectrum conducted under section 309 (or any 
     other section) of the Communications Act of 1934 (47 U.S.C. 
     309 (j)) (or any other provision of Federal law) after 
     September 30, 2007.
       (c) Board of Directors; Functions, and Duties.--
       (1) Board.--
       (A) 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, by and with the advice and consent of the Senate, 
     who--
       (i) reflect representation from the public and private 
     sectors;
       (ii) are not regular full-time employees of the Federal 
     Government;
       (iii) are eminent in such fields as telecommunications 
     including public television, information technology, labor 
     and workforce development, education, cultural and civic 
     affairs, or the arts and humanities;
       (iv) 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; and
       (v) shall be responsible for establishing the priorities 
     and funding obligations of the Trust.
       (B) Initial members.--The initial members of the Board 
     shall serve as incorporators of the Trust and shall take 
     whatever actions are necessary to establish the Trust under 
     the District of Columbia Nonprofit Corporation Act (D.C. 
     Code, section 29-501 et seq.).
       (C) 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 jointly submit to the President 
     recommendations of individuals, selected from nominations 
     submitted to Congress from associations representing the 
     fields of science and learning relative to the work of the 
     Board, to serve as members of the Board.
       (D) Terms of appointment.--
       (i) Date.--Members of the Board shall be appointed not 
     later than 90 days after the date of enactment of this Act.
       (ii) Terms.--

       (I) In general.--Except as provided in subclause (II), each 
     member of the Board shall be appointed for a 6-year term with 
     terms set to expire in non-Federal election years.
       (II) Staggered terms.--With respect to the initial members 
     of the Board--

       (aa) 3 members shall serve for a term of 6 years;
       (bb) 3 members shall serve for a term of 4 years; and
       (cc) 3 members shall serve for a term of 2 years.
       (iii) 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.
       (E) Chair and vice-chair.--
       (i) 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.
       (ii) Consecutive terms.--An individual may not serve for 
     more than 2 consecutive terms as Chair of the Board.
       (F) Meetings.--
       (i) First meeting.--Not later than 30 days after the date 
     on which all of the members of the Board have been confirmed 
     by the Senate, the Chair of the Board shall call the first 
     meeting of the Board.
       (ii) Quorum.--A majority of the members of the Board shall 
     constitute a quorum, but a lesser number of members may hold 
     hearings.
       (G) Board personnel matters.--
       (i) Compensation.--Members of the Board shall not receive 
     compensation, allowances, or benefits by reason of the 
     members' service on the Board.
       (ii) 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.
       (H) Solicitation of advice.--The Board from time to time 
     may solicit advice from--
       (i) the Secretary of Health and Human Services;
       (ii) the Secretary of Commerce;
       (iii) the Secretary of Education;
       (iv) the Secretary of Agriculture;
       (v) the Secretary of Defense;
       (vi) the Secretary of Energy;
       (vii) the Secretary of Homeland Security;
       (viii) the Secretary of the Interior;

[[Page S5157]]

       (ix) the Secretary of Labor;
       (x) the Administrator of the National Aeronautics and Space 
     Administration;
       (xi) the Director of the National Security Agency;
       (xii) the Director of the National Science Foundation;
       (xiii) the Director of the Office of Science and Technology 
     Policy;
       (xiv) the Director of the National Endowment for the Arts;
       (xv) the Director of the National Endowment for the 
     Humanities;
       (xvi) the Director of the Institute of Museum and Library 
     Services;
       (xvii) the Librarian of Congress; and
       (xviii) the President and Chief Executive Officer of the 
     Corporation for Public Broadcasting.
       (2) 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. The rate of compensation of the 
     Director and personnel shall be fixed by the Board.
       (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 support the digitization of collections and other 
     significant holdings of the nation's universities, museums, 
     libraries, public television stations, and other cultural 
     institutions;
       (B) to support basic and applied research, including 
     demonstrations of innovative learning and assessment systems 
     as well as the components and tools needed to create them;
       (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 needs, 
     including--
       (i) strengthening instruction in reading, science, 
     mathematics, history, and the arts in elementary and 
     secondary schools, community colleges, and other colleges and 
     universities;
       (ii) providing the training needed for people now in the 
     workplace to advance in a constantly changing work 
     environment; and
       (iii) developing new applications for life-long learning in 
     non-traditional learning environments such as libraries, 
     museums, senior and community centers, and public television 
     and radio;
       (D) to conduct assessments of legal, regulatory, and other 
     issues that must be resolved to ensure rapid development and 
     use of advanced learning technologies; and
       (E) to coordinate and disseminate information about 
     initiatives throughout the Federal Government that focus on 
     uses of technology in education and learning.
       (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 public institutions 
     (with or without private partners) and for-profit 
     organizations and individuals.
       (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.
       (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 in the long run due to the project not being 
     freely and nonexclusively available to the general public.
       (C) Evaluation of proposals.--To the extent practicable, 
     proposals for such contracts or grants 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 the Board of Directors.
       (3) Cooperation.--The Director of the Trust, after 
     consultation with the Board, may cooperate with business, 
     industry, philanthropy, noncommercial education broadcast, 
     television and radio licensees and permittees, and local and 
     national public service institutions, including in activities 
     that seek to enhance the work of such public service 
     institutions by seeking new ways to put telecommunications 
     and information technologies to work in their areas of 
     interest.

     SEC. 3. ACCOUNTABILITY AND REPORTING.

       (a) Report.--
       (1) 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 paragraph (2).
       (2) Contents.--A report under paragraph (1) shall include--
       (A) 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; and
       (B) a comprehensive and detailed inventory of funds 
     distributed from the Trust Fund during the fiscal year for 
     which the report is being prepared.
       (3) Statement of the board.--Each report under paragraph 
     (1) shall include a statement from the Board containing--
       (A) a clear description of the plans and priorities of the 
     Board for the subsequent 5-year period for expenditures from 
     the Trust Fund; and
       (B) an estimate of the funds that will be available for 
     such expenditures from the Trust Fund.
       (4) Submission to the president and congress.--A report 
     under this subsection shall be submitted to the President and 
     the appropriate committees of Congress.
       (b) Testimony.--The Chair of the Board, other members of 
     the Board, and the Director and principal officers of the 
     Trust shall testify before the appropriate committees of 
     Congress, upon request of such committees, with respect to--
       (1) a report prepared under subsection (a)(1); and
       (2) any other matter that such committees may determine 
     appropriate.

     SEC. 4. INVESTMENT OF TRUST FUNDS.

       (a) In General.--The Secretary of the Treasury, after 
     consultation with the Board, shall invest the funds of the 
     Trust Fund in interest-bearing obligations of the United 
     States or in obligations guaranteed as to both principal and 
     interest by the United States.
       (b) Expenditures.--
       (1) 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.
       (2) Obligation of funds.--
       (A) In general.--Except as provided in subparagraph (B), 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.
       (B) 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.

     SEC. 5. SPECIAL ACCOUNT FOR DISTRIBUTION TO PUBLIC TELEVISION 
                   STATIONS.

       (a) Reservation.--An amount equivalent to 21 percent of the 
     interest derived from the investment proceeds referred to in 
     section 2(b)(2) 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 the Communications Act of 1934 
     (47 U.S.C. 397(6)) that are qualified to receive grants from 
     the Corporation for Public Broadcasting pursuant to section 
     396(k)(6)(B) of such Act (47 U.S.C. 396(k)(6)(B)) and to the 
     Public Broadcasting Service in partnership with such 
     stations.
       (b) Responsibility for Distribution.--The Director of the 
     Trust shall--
       (1) through a special contract, designate the Corporation 
     for Public Broadcasting as the sole agent responsible for the 
     distribution of funds under this section; and
       (2) transfer the funds referred to in subsection (a) to the 
     Corporation for Public Broadcasting on a regular basis.
       (c) Grants.--In making the distribution referred to in 
     subsection (a), 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 and ensures that a diversity of licensee 
     types and geographic service areas are adequately served. The 
     Corporation for Public Broadcasting shall develop such 
     criteria in consultation with public television licensees, 
     permitees, and representatives designated by their national 
     organizations.
                                 ______