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;
                            (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.
Digital Opportunity Investment Trust Act - Establishes the Digital Opportunity Investment Trust, which shall receive 30 percent of the proceeds received by the Federal Government each fiscal year quarter through FY 2028 from any use of the publicly owned electromagnetic spectrum after September 30, 2007. Establishes: (1) a Board to oversee administration of the Trust; and (2) a Director of the Trust. Sets forth authorized Trust uses. Obligates specified amounts for public television stations.
A bill to provide for the establishment of a Digital Opportunity Investment Trust.