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[Congressional Bills 108th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1396 Introduced in House (IH)]

108th CONGRESS
  1st Session
                                H. R. 1396

         To allocate spectrum for the enhancement of wireless 
 telecommunications, and to invest wireless spectrum auction proceeds 
   for the military preparedness and educational preparedness of the 
       United States for the digital era, and for other purposes.

_______________________________________________________________________

                    IN THE HOUSE OF REPRESENTATIVES

                             March 20, 2003

 Mr. Markey (for himself and Mr. Larson of Connecticut) introduced the 
   following bill; which was referred to the Committee on Energy and 
                                Commerce

_______________________________________________________________________

                                 A BILL

 
         To allocate spectrum for the enhancement of wireless 
 telecommunications, and to invest wireless spectrum auction proceeds 
   for the military preparedness and educational preparedness of the 
       United States for the digital era, and for other purposes.

    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 ``Spectrum Commons and Digital 
Dividends Act of 2003''.

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) Similarly, the public interest would be served by 
        reallocating additional portions of the public's airwaves for 
        use by the private sector for advanced wireless services.
            (5) In addition, certain frequencies should be allocated to 
        the general public as a ``spectrum commons'' for unlicensed 
        use.
            (6) A continuation of our competition-based spectrum policy 
        can promote innovation, create jobs, lower prices, and increase 
        consumer choice in the marketplace.
            (7) Determining which specific frequencies to reallocate 
        must be done in a manner that reflects an appropriate balance 
        between the needs of current users and the legitimate 
        requirements of the private sector for introducing new 
        services.
            (8) Spectrum auctions will reap revenue that can be used to 
        compensate incumbent users, including the military, for 
        relocation costs.
            (9) Auction proceeds can additionally be utilized to foster 
        the use of educational technology, promote deployment of public 
        telecommunications infrastructure, and establish a self-
        sustaining fund for grants to address the digital divide.
            (10) 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 between rich and poor, and 
        between urban and many rural areas.
            (11) 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 our citizens obtain the skill set necessary to 
        compete for jobs in the new economy.
            (12) 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.
            (13) 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.
            (14) A policy that promotes investment in wireless 
        technology along with a concomitant investment in the human 
        resources of our Nation is in the national economic interest of 
        the United States.

  TITLE I--TELECOMMUNICATIONS INFRASTRUCTURE DEVELOPMENT AND CITIZEN 
                              EMPOWERMENT

SEC. 101. DIGITAL DIVIDENDS TRUST FUND.

     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 DIVIDENDS TRUST FUND.

    ``(a) Establishment.--
            ``(1) Fund established.--There is hereby established in the 
        Treasury of the United States the Digital Dividends Trust Fund 
        (hereinafter in this section referred to as the `Fund').
            ``(2) Deposits.--The corpus of the Fund shall be the 
        amounts deposited into the Fund pursuant to section 
        309(j)(8)(D)(ii).
    ``(b) Board of Trustees.--The Fund shall be administered under the 
direction of a board of directors (hereinafter in this section referred 
to as `the board') comprised of--
            ``(1) the Assistant Secretary for Communications and 
        Information of the Department of Commerce; and
            ``(2) 6 additional members, appointed by the President, 
        with experience in one or more of the following fields: 
        investment management; corporate finance; computer software; 
        telecommunications; and education and cultural heritage.
    ``(c) Administration; Preservation of Principal.--All deposits 
described in subsection (a)(2) shall be invested in a manner that the 
board finds prudent and reasonable and that is designed to ensure that 
annual income is sufficient to cover the uses specified in subsection 
(d) and the other expected costs of carrying out the purposes of this 
section. Such deposits shall not be expended for the support of any of 
the purposes authorized by subsection (d).
    ``(d) Use of Income.--Income to the fund shall be allocated by the 
Board as follows:
            ``(1) Human capital telecommunications investments.--Not to 
        exceed 65 percent of the income for any fiscal year to the 
        human capital telecommunications investment program under 
        section 106 of the National Telecommunications and Information 
        Administration Organization Act.
            ``(2) Broadband infrastructure investments for public 
        access and rural development.--Not to exceed 65 percent of the 
        income for any fiscal year to the Public Broadband 
        Infrastructure Investments Program under section 107 of the 
        National Telecommunications and Information Administration 
        Organization Act.''.

SEC. 102. HUMAN CAPITAL TELECOMMUNICATIONS INVESTMENTS.

    Part A of the National Telecommunications and Information 
Administration Organization Act (47 U.S.C. 901 et seq.) is amended by 
adding at the end the following new section:

``SEC. 106. HUMAN CAPITAL TELECOMMUNICATIONS INVESTMENTS.

    ``(a) Grant Program Authorized.--From the funds available under 
section 309A(d)(1) of the Communications Act of 1934, the Secretary 
shall carry out a Human Capital Telecommunications Investment Program 
in accordance with the requirements of this section.
    ``(b) Use of Grant Funds.--Funds made available by a grant under 
this section may be used for--
            ``(1) training for teachers and other educational personnel 
        at schools and libraries eligible for services or assistance 
        under section 254;
            ``(2) research and development for sophisticated, content-
        related educational software and programming designed to 
        enhance learning in elementary, secondary, and postsecondary 
        education and to enable schools, libraries, and museums to 
        reach outside their walls and into homes, other schools, and 
        workplaces;
            ``(3) digitizing eductional materials held in our Nation's 
        libraries, archives, and museums and other institutiions of 
        learning;
            ``(4) technology projects supported by volunteers enrolled 
        in the AmeriCorps and designated by the Corporation for 
        National Service;
            ``(5) projects enhancing the access of individuals with 
        disabilities to advanced telecommunications services;
            ``(6) projects for retraining workers and unemployed 
        individuals with skills applicable to the new economy; and
            ``(7) projects for after school programs for youth focused 
        on computer literacy and interaction.
    ``(c) Eligible Applicants.--The following organizations and 
agencies shall be eligible to apply for funds under this section:
            ``(1) an elementary, secondary, or postsecondary 
        educational institution;
            ``(2) a nonprofit agency or organization that is exempt 
        from income taxes under section 501(c)(3) of the Internal 
        Revenue Code of 1986; or
            ``(3) an agency or instrumentality of a State or local 
        government of the United States (including an agency or 
        instrumentality of a territory or possession of the United 
        States).
    ``(d) Application.--Any organization or entity seeking a grant 
under this section shall submit to the Secretary an application at such 
time, in such manner, and containing or accompanied by such information 
and assurances as the Secretary may require by regulation.''.

SEC. 103. PUBLIC BROADBAND INFRASTRUCTURE INVESTMENTS.

    Part A of the National Telecommunications and Information 
Administration Organization Act is amended by adding after section 106 
(as added by section 102 of this Act) the following new section:

``SEC. 107. PUBLIC BROADBAND INFRASTRUCTURE INVESTMENTS PROGRAM.

    ``(a) Grant Program Authorized.--From the funds available under 
section 309A(d)(2) of the Communications Act of 1934, the Secretary 
shall carry out a Public Broadband Infrastructure Investments Program 
in accordance with the requirements of this section.
    ``(b) Use of Grant Funds.--
            ``(1) Permitted uses.--Funds made available by a grant 
        under this section may be used for--
                    ``(A) local and regional initiatives that expand 
                public access to advanced telecommunications and 
                information services at locations that are accessible 
                to the general public;
                    ``(B) deployment of broadband telecommunications 
                services in unserved rural areas; and
                    ``(C) deployment of broadband telecommunications 
                services to low-income housing and community centers.
            ``(2) Required uses.--Not to exceed $300,000,000 from the 
        funds available under section 309A(d)(2) of the Communications 
        Act of 1934 for each of the first 5 fiscal years shall be made 
        available by grant for the purpose of converting public 
        broadcasting facilities to digital technology through the 
        public telecommunications facilities program under section 392 
        of the Communications Act of 1934.
    ``(c) Eligible Applicants.--The following organizations and 
agencies shall be eligible to apply for funds under this subsection 
(b)(1):
            ``(1) a nonprofit agency or organization that is exempt 
        from income taxes under section 501(c)(3) of the Internal 
        Revenue Code of 1986; or
            ``(2) an agency or instrumentality of a State or local 
        government of the United States (including an agency or 
        instrumentality of a territory or possession of the United 
        States).
    ``(d) Application.--Any organization or entity seeking a grant 
under this section shall submit to the Secretary an application at such 
time, in such manner, and containing or accompanied by such information 
and assurances as the Secretary may require by regulation.''.

TITLE II--CREATION OF SPECTRUM COMMONS AND AVAILABILITY OF SPECTRUM FOR 
                       ADVANCED WIRELESS SERVICES

SEC. 201. AVAILABILITY OF SPECTRUM FOR ADVANCED WIRELESS SERVICES.

    (a) Identification.--Section 113 of the National Telecommunications 
and Information Administration Organization Act (47 U.S.C. 923) is 
amended by adding at the end thereof the following new subsection:
    ``(j) Creation of Spectrum Commons and Designation of Spectrum for 
Advanced Wireless Services; Relocation Plan.--
            ``(1) Plan required.--The Secretary shall, not later than 
        January 1, 2003, prepare, make publicly available, and submit 
        to the President, the Congress, and the Commission a report 
        that--
                    ``(A) designates a 20-megahertz band of contiguous 
                frequencies located below 2 gigahertz, and a band of 
                between 3 and 500 megahertz of contiguous frequencies 
                above 2 gigahertz and below 6 gigahertz, for 
                reallocation to the public for unlicensed use;
                    ``(B) designates bands of frequencies for 
                reallocation for the provision of advanced wireless 
                services; and
                    ``(C) in consultation with the Commission, 
                establishes a plan for the relocation or modification 
                of Federal Government stations currently occupying the 
                band of frequencies located at 1,710-1,850 megahertz, 
                including a description of the phases by which such 
                relocation or modification shall be accomplished 
                consistent with the public interest.
            ``(2) Deadlines.--
                    ``(A) Minimum for 2005.--Notwithstanding any other 
                provision of law, such plan shall ensure that not less 
                than 30, but not more than 45, megahertz of paired 
                spectrum is available and usable for advanced wireless 
                services by December 31, 2005.
                    ``(B) Minimum for 2008.--Notwithstanding any other 
                provision of law, such plan shall ensure that an 
                additional 50 megahertz of paired spectrum is made 
                available and usable for advanced wireless services by 
                December 31, 2008.
                    ``(C) Potential additional spectrum for timely 
                reallocation.--Notwithstanding any other provision of 
                law, the Commission shall ensure that any rules 
                necessary to effectuate the timely transition to 
                digital television are promulgated and completed by the 
                Commission prior to making available the bands of 
                frequencies at 747-762 and 777-792 megahertz for 
                advanced wireless services or other competitive 
                wireless services. The Commission shall ensure that any 
                plan to achieve the clearance of such frequencies shall 
                not result in the unjust enrichment of any incumbent 
                licensee.
                    ``(D) Definition.--For the purposes of subparagraph 
                (C), the term `rules necessary to effectuate the timely 
                transition to digital television' includes rules 
                requiring must-carry of free, over-the-air signals of 
                broadcast television stations, minimum digital 
                television network programming and broadcasting 
                requirements, and rules requiring that models of 
                television receiver equipment have the capability of 
                displaying digital television signals by certain 
                dates.''.
    (b) Allocation.--Section 115 of the National Telecommunications and 
Information Administration Organization Act (47 U.S.C. 925) is amended 
by adding at the end the following new subsection:
    ``(d) Allocation of Spectrum for Advanced Wireless Services.--
            ``(1) In general.--With respect to the frequencies 
        identified in section 113(j)(1)(A) and in section 113(j)(1)(B), 
        the Commission shall, within 60 days of the release of the 
        report required by section 113(j), commence a proceeding to 
        allocate such frequencies for advanced wireless services and 
        adopt technical, licensing, and service rules applicable to 
        such frequencies. Such frequencies shall be assigned by 
        competitive bidding pursuant to section 309(j) of the 1934 Act 
        on a schedule consistent with the relocation plan established 
        pursuant to section 113(j)(1)(B) and the requirements of 
        section 113(g)(1)(A).
            ``(2) Spectrum commons.--With respect to the frequencies 
        designated for reallocation pursuant to section 113(j)(1)(C), 
        the Commission shall--
                    ``(A) establish any rules necessary for unlicensed 
                use of such spectrum including--
                            ``(i) standards for interference 
                        protection; and
                            ``(ii) rules ensuring that all wireless 
                        broadband devices meet minimum technical 
                        standards; and
                    ``(B) make such spectrum available to the public by 
                December 31, 2004.''.

SEC. 202. RELOCATION OF FEDERAL GOVERNMENT STATIONS.

    (a) Relocation From Spectrum for Advanced Wireless Services.--
Section 113(g) of National Telecommunications and Information 
Administration Organization Act (47 U.S.C. 923(g)) is amended by adding 
at the end the following new paragraph:
            ``(4) Special provisions for relocation from spectrum for 
        advanced wireless services.--
                    ``(A) Applicability.--The provisions of this 
                paragraph shall apply in lieu of the provisions of 
                paragraphs (1) through (3) with respect to relocating 
                the operations of Federal entities from the frequencies 
                reallocated to advanced wireless services under section 
                115(d).
                    ``(B) Authority to accept compensation.--In order 
                to expedite the commercial use of the electromagnetic 
                spectrum and notwithstanding section 3302(b) of title 
                31, United States Code, the head of any Federal entity 
                may accept from the Spectrum Relocation Trust Fund 
                compensation for the costs of relocating such entity's 
                operations from one or more frequencies to another 
                frequency or frequencies. The costs for which the 
                Federal entity shall be compensated shall be the 
                relocation costs of the entity's operations, except 
                that the entity may be compensated for the replacement 
                costs of relocating a particular station if the head of 
                such entity can demonstrate to the President that such 
                a level of compensation is vital to the national 
                security or public safety.
                    ``(C) Requirement to compensate federal entities.--
                The Federal entity shall be compensated in advance for 
                the costs that the Federal entity incurs under 
                subparagraph (B). Such compensation may take the form 
                of a cash payment or in-kind compensation. Such 
                compensation shall come from the Spectrum Relocation 
                Trust Fund.
                    ``(D) Spectrum relocation trust fund.--
                            ``(i) Establishment.--There is established 
                        in the Treasury a Spectrum Relocation Trust 
                        Fund (referred to in this subparagraph as the 
                        `Fund'), consisting of amounts deposited 
                        pursuant to section 309(j)(8)(D)(i) of the 1934 
                        Act.
                            ``(ii) Expenditure of amounts for 
                        reimbursement of relocated operations.--The 
                        Secretary of the Treasury shall transfer from 
                        the Fund to each Federal entity the sums 
                        identified under subparagraph (B) to pay the 
                        costs of relocation or modification of the 
                        entity's stations and the head of such entity 
                        shall use such sums to make payments to satisfy 
                        such costs.
                            ``(iii) Maximum deposits.--If the NTIA 
                        determines that the proceeds of an auction the 
                        proceeds of which are required to be deposited 
                        in the Fund have exceeded or will exceed a sum 
                        equal to (I) the replacement costs incurred in 
                        connection with such auction, plus (II) 10 
                        percent of any auction proceeds above such 
                        amount, the NTIA shall notify the Secretary of 
                        the Treasury. Upon receipt of such notice, the 
                        Secretary of the Treasury shall, 
                        notwithstanding section 309(j)(8) of the 
                        Communications Act of 1934 (47 U.S.C. 
                        309(j)(8)), transfer the remainder of the 
                        proceeds of any such auction in excess of such 
                        sum to the Digital Dividends Trust Fund 
                        established by section 309A of the 1934 Act.
                            ``(iv) Termination.--When the NTIA 
                        determines that no additional Federal 
                        Government stations need to be relocated or 
                        modified, NTIA shall notify the Secretary of 
                        the Treasury, who shall terminate the Fund. Any 
                        unallocated funds remaining in the Fund shall 
                        be transferred to the Fund specified in clause 
                        (iii).''.

SEC. 203. DEFINITIONS.

     Section 111 of the National Telecommunications and Information 
Administration Organization Act (47 U.S.C. 921) is amended by adding at 
the end the following new paragraphs:
            ``(4) The term `relocation costs' means the costs that will 
        be incurred by a Federal entity to achieve comparable 
        capability of systems that are relocated to a new frequency 
        assignment or band or otherwise modified, including the costs 
        of any modification, replacement, or reissuance of equipment 
        and facilities incurred by that entity.
            ``(5) The term `replacement costs' means the costs that 
        would be incurred by a Federal entity to replace existing 
        equipment or facilities in order to relocate to a new frequency 
        assignment or band.''.

 TITLE III--DISTRIBUTION OF PROCEEDS OF AUCTIONS FOR ADVANCED WIRELESS 
                                SERVICES

SEC. 301. DIVISION BETWEEN TRUST FUNDS.

     Section 309(j)(8) of the Communications Act of 1934 (47 U.S.C. 
309(j)(8)) is amended--
            (1) in subparagraph (A), by striking ``subparagraph (B)'' 
        and inserting ``subparagraphs (B) and (D)''; and
            (2) by adding at the end the following new subparagraph:
                    ``(D) Proceeds of auctions for advanced wireless 
                services.--Notwithstanding subparagraph (A), the 
                proceeds of any competitive bidding under this 
                subsection with respect to the spectrum allocated for 
                advanced wireless services pursuant to section 
                115(d)(1) of the National Telecommunications and 
                Information Administration Organization Act shall, 
                after the deduction of salaries and expenses required 
                by subparagraph (B), be allocated as follows:
                            ``(i) the first $5,000,000,000 shall be 
                        deposited in the Relocated Federal Entities 
                        Trust Fund established BY section 113(g)(4)(D) 
                        of such Act; and
                            ``(ii) the remainder of the proceeds of 
                        such competitive bidding shall be deposited in 
                        the Digital Dividends Trust Fund established by 
                        section 309A of this Act.''.
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