I 

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. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Digital Opportunity 

5 Investment Trust Act’’. 

6 SEC. 2. FINDINGS. 

7 The Congress finds the following: 

8 (1) The United States stands to benefit in the 

9 global economy by reallocating additional airwave as-
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1 sets to the private sector for innovative wireless serv2 ices. 

3 (2) Congress previously mandated reallocation 

4 of over 200 megahertz of frequency spectrum from 

5 Government use to the Federal Communications 

6 Commission for private sector licensing. 

7 (3) This previous reallocation spurred deploy8 ment of new digital wireless services, Government 

9 action that helped to lower prices, create jobs, and 

10 increase consumer choice. 

11 (4) In addition, the use of auctions as an effi12 cient mechanism to assign licenses generated funds 

13 that were deposited for general revenue purposes in 

14 the United States Treasury. 

15 (5) Auction proceeds from the competitive bid16 ding for wireless licenses can additionally be utilized 

17 to foster the use of educational technology, promote 

18 deployment of public telecommunications infrastruc19 ture, and establish a self-sustaining trust fund for 

20 grants to transform education, skills training, and 

21 lifelong learning. 

22 (6) While more and more Americans are uti23 lizing electronic tools in every aspect of their lives, 

24 a digital divide still remains in many areas of our 

25 country and many citizens lack the skill set nec-
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1 essary to compete for jobs in a 21st Century digital 

2 economy. 

3 (7) Educational preparedness will be critical if 

4 the United States is to have a technologically savvy 

5 workforce to fuel growth of our high tech economy 

6 in the global marketplace. 

7 (8) Utilizing spectrum auction proceeds to en8 hance the use of educational technology and to in9 crease public access to advanced telecommunications 

10 underscores our commitment to ensuring that all of 

11 our citizens are prepared for the new economy. 

12 (9) The creation of a self-sustaining mechanism 

13 to make available annual funding for needed public 

14 access and educational technology grants is an ap15 propriate use of revenue generated from corporate 

16 use of the public’s airwaves and consistent with the 

17 public interest. 

18 (10) A policy that promotes investment in wire19 less technology and services along with a concomi20 tant investment in the educational, cultural, and 

21 telecommunications resources available to all our 

22 citizens is in the national economic interest of the 

23 United States. 
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1 SEC. 3. ESTABLISHMENT OF TRUST FUND. 

2 (a) AMENDMENT.—Part I of title III of the Commu3 nications Act of 1934 is amended by inserting after sec4 tion 309 (47 U.S.C. 309) the following new section: 

5 ‘‘SEC. 309A. DIGITAL OPPORTUNITY INVESTMENT TRUST 

6 FUND. 

7 ‘‘(a) ESTABLISHMENT.—There is established a non8 profit corporation to be known as the ‘Digital Opportunity 

9 Investment Trust’ (referred to in this Act as the ‘Trust’) 

10 which shall not be an agency or establishment of the 

11 United States Government. The Trust shall be subject to 

12 the provisions of this section, and, to the extent consistent 

13 with this section, to theDistrict of Columbia Nonprofit 

14 Corporation Act (D.C. Code, section 29–501 et seq.). 

15 ‘‘(b) FUNDING.— 

16 ‘‘(1) IN GENERAL.—There is established in the 

17 Treasury a separate fund to be known as the ‘Dig18 ital Opportunity Investment Trust Fund’ (referred 

19 to in this Act as the ‘Trust Fund’). The Trust Fund 

20 shall contain such amounts as are credited to the 

21 Trust Fund under paragraph (2) and any interest 

22 earned on the investment of amounts in the Trust 

23 Fund under subsection (g). 

24 ‘‘(2) DEPOSIT OF FUNDS.—The Trust Fund 

25 shall be credited with the amounts specified in— 

26 ‘‘(A) section 309(j)(8)(E) of this Act; and 
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1 ‘‘(B) section 118(d)(3) of the National 

2 Telecommunications and Information Adminis3 tration Organization Act. 

4 ‘‘(c) BOARD OF DIRECTORS; FUNCTIONS, AND DU5 TIES.— 

6 ‘‘(1) IN GENERAL.—A board of directors of the 

7 Trust (referred to in this Act as the ‘Board’) shall 

8 be established to oversee the administration of the 

9 Trust. Such Board shall consist of 9 members to be 

10 appointed by the President, who— 

11 ‘‘(A) reflect representation from the public 

12 and private sectors; 

13 ‘‘(B) are not regular full-time employees of 

14 the Federal Government; 

15 ‘‘(C) are eminent in such fields as tele16 communications, information technology, labor 

17 and workforce development, education, cultural 

18 and civic affairs, or the arts and humanities; 

19 and 

20 ‘‘(D) shall provide, as nearly as prac21 ticable, a broad representation of various re22 gions of the United States, various professions 

23 and occupations, and various kinds of talent 

24 and experience appropriate to the functions and 

25 responsibilities of the Trust. 
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1 ‘‘(2) RECOMMENDATIONS.—The Majority Lead2 er of the Senate, the Minority Leader of the Senate, 

3 the Speaker of the House of Representatives, and 

4 the Minority Leader of the House of Representatives 

5 shall submit to the President recommendations of 

6 individuals to serve as members of the Board. 

7 ‘‘(3) TERMS OF APPOINTMENT.— 

8 ‘‘(A) DATE.—Members of the Board shall 

9 be appointed not later than 90 days after the 

10 date of enactment of this Act. 

11 ‘‘(B) TERMS.— 

12 ‘‘(i) IN GENERAL.—Except as pro13 vided in clause (ii), each member of the 

14 Board shall be appointed for a 3-year term 

15 with terms set to expire in non-Federal 

16 election years. 

17 ‘‘(ii) STAGGERED TERMS.—With re18 spect to the initial members of the 

19 Board— 

20 ‘‘(I) 3 members shall serve for a 

21 term of 3 years; 

22 ‘‘(II) 3 members shall serve for a 

23 term of 2 years; and 

24 ‘‘(III) 3 members shall serve for 

25 a term of 1 year. 
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1 ‘‘(C) VACANCIES.—A vacancy in the mem2 bership of the Board shall not affect the 

3 Board’s powers, and shall be filled in the same 

4 manner as the original member was appointed. 

5 ‘‘(4) CHAIR AND VICE-CHAIR.— 

6 ‘‘(A) SELECTION.—The Board shall select, 

7 from among the members of the Board, an indi8 vidual to serve for a 2-year term as Chair of the 

9 Board and an individual to serve for a 2-year 

10 term as vice-Chair of the Board. 

11 ‘‘(B) CONSECUTIVE TERMS.—An individual 

12 may not serve for more than 3 consecutive 

13 terms as Chair of the Board. 

14 ‘‘(5) MEETINGS.— 

15 ‘‘(A) FIRST MEETING.—Not later than 30 

16 days after the date on which all of the members 

17 of the Board have been appointed by the Presi18 dent, the Chair of the Board shall call the first 

19 meeting of the Board. 

20 ‘‘(B) QUORUM.—A majority of the mem21 bers of the Board shall constitute a quorum, 

22 but a lesser number of members may hold hear23 ings. 

24 ‘‘(6) BOARD PERSONNEL MATTERS.— 
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1 ‘‘(A) COMPENSATION.—Members of the 

2 Board shall not receive compensation, allow3 ances, or benefits by reason of the members’ 

4 service on the Board. 

5 ‘‘(B) TRAVEL EXPENSES.—The members 

6 of the Board shall be allowed travel expenses, 

7 including per diem in lieu of subsistence, at 

8 rates authorized for employees of agencies 

9 under subchapter I of chapter 57 of title 5, 

10 United States Code, while away from their 

11 homes or regular places of business in the per12 formance of services for the Board. 

13 ‘‘(C) SALARIES AND EXPENSES.—No offi14 cer or employee of the Trust may be com15 pensated by the Trust at an annual rate of pay 

16 which exceeds the rate of basic pay in effect for 

17 level I of the Executive Schedule under section 

18 5312 of Title 5, United States Code. 

19 ‘‘(7) DIRECTOR.—A majority of the members of 

20 the Board shall select a Director of the Trust who 

21 shall serve at the discretion of the Board and shall 

22 be responsible for instituting procedures to carry out 

23 the policies and priorities established by the Board, 

24 and for hiring all personnel of the Trust. 
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1 ‘‘(8) ADDITIONAL REQUIREMENTS AND LIMITA2 TIONS.— 

3 ‘‘(A) FIDELITY.—No individual other than 

4 a citizen of the United States may be an officer 

5 of the Trust. No officer of the Trust may re6 ceive any salary or other compensation (except 

7 for compensation for services on boards of di8 rectors of other organizations that do not re9 ceive funds from the Trust, on committees of 

10 such boards, and in similar activities for such 

11 organizations) from any sources other than the 

12 Trust for services rendered during the period of 

13 his or her employment by the Trust. Service by 

14 any officer on boards of directors of other orga15 nizations, on committees of such boards, and in 

16 similar activities for such organizations shall be 

17 subject to annual advance approval by the 

18 Board and subject to the provisions of the 

19 Trust’s Statement of Ethical Conduct. All offi20 cers shall serve at the pleasure of the Board. 

21 ‘‘(B) NONPARTISANSHIP.—No political test 

22 or qualification shall be used in selecting, ap23 pointing, promoting, or taking other personnel 

24 actions with respect to officers, agents, and em25 ployees of the Trust. The Trust may not con-
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1 tribute to or otherwise support any political 

2 party or candidate for elective public office. 

3 ‘‘(C) NONPROFIT NATURE OF THE

4 TRUST.—The Trust shall have no power to 

5 issue any shares of stock, or to declare or pay 

6 any dividends. No part of the income or assets 

7 of the Trust shall inure to the benefit of any di8 rector, officer, employee, or any other individual 

9 except as salary or reasonable compensation for 

10 services. 

11 ‘‘(d) TRUST FUND USES.— 

12 ‘‘(1) USES OF FUNDS.—To achieve the objec13 tives of this Act, the Director of the Trust, after 

14 consultation with the Board, may use Trust funds— 

15 ‘‘(A) to help underwrite the digitization of 

16 the collections in the Nation’s universities, mu17 seums, libraries, public broadcasting stations, 

18 and cultural institutions; 

19 ‘‘(B) to support basic and applied re20 search, development, and demonstrations of in21 novative learning and assessment systems as 

22 well as the components and tools needed to cre23 ate them; and 

24 ‘‘(C) to use the research results developed 

25 under subparagraph (B) to create prototype ap-
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1 plications designed to meet learning objectives 

2 in a variety of subject areas and designed for 

3 learners with many different educational back4 grounds, including— 

5 ‘‘(i) strengthening instruction in read6 ing, science, mathematics, history, and the 

7 arts in elementary and secondary schools, 

8 particularly in academically struggling 

9 school districts; 

10 ‘‘(ii) providing the training needed for 

11 people now in the workplace to advance in 

12 a constantly changing work environment; 

13 ‘‘(iii) training needed for teachers to 

14 utilize new tools and technologies in the 

15 classroom; and 

16 ‘‘(iv) instruction in community cen17 ters, libraries, community colleges, univer18 sities, other institutions of higher edu19 cation, and through public television and 

20 radio stations; 

21 ‘‘(v) supporting projects that enhance 

22 the access of individuals with disabilities to 

23 advanced telecommunications services; and 
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1 ‘‘(vi) supporting after-school programs 

2 with youths focused on computer literacy 

3 and education. 

4 ‘‘(2) CONTRACTS AND GRANTS.— 

5 ‘‘(A) IN GENERAL.—In order to carry out 

6 the activities described in paragraph (1), the 

7 Director of the Trust, with the agreement of a 

8 majority of the members of the Board, may 

9 award contracts and grants to nonprofit organi10 zations and public institutions (with or without 

11 private partners). 

12 ‘‘(B) PUBLIC DOMAIN.— 

13 ‘‘(i) IN GENERAL.—The research and 

14 development properties and materials asso15 ciated with a project in which a majority 

16 of the funding used to carry out the 

17 project is from a grant or contract under 

18 this Act shall be freely and nonexclusively 

19 available to the general public in a timely 

20 manner. 

21 ‘‘(ii) EXEMPTION.—The Director of 

22 the Trust may exempt specific projects 

23 from the requirement of clause (i) if the 

24 Director of the Trust and a majority of the 

25 members of the Board determine that the 
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1 general public will benefit significantly due 

2 to the project not being freely and non3 exclusively available to the general public 

4 in a timely manner. 

5 ‘‘(C) PEER REVIEW.—To the extent prac6 ticable, proposals for grants or contracts shall 

7 be evaluated on the basis of comparative merit 

8 by panels of experts who represent diverse in9 terests and perspectives, and who are appointed 

10 by the Director of the Trust from recommenda11 tions from the fields served and from the Board 

12 of Directors. 

13 ‘‘(e) SPECIAL ACCOUNT FOR DISTRIBUTION TO EDU14 CATIONAL TELEVISION STATIONS.— 

15 ‘‘(1) RESERVATION.—An amount equivalent to 

16 21 percent of the interest derived from the invest17 ment proceeds of the amounts deposited in the Trust 

18 Fund under section 309(j)(8)(E) of this Act shall be 

19 reserved in a special account within the Trust Fund 

20 for distribution on a regular basis to those non21 commercial educational television broadcast stations 

22 (as defined in section 397(6) of this Act that are 

23 qualified to receive grants from the Corporation for 

24 Public Broadcasting pursuant to section 
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1 396(k)(6)(B) of this Act and to the Public Broad2 casting Service in partnership with such stations. 

3 ‘‘(2) RESPONSIBILITY FOR DISTRIBUTION.— 

4 The Director of the Trust shall— 

5 ‘‘(A) through a special contract, designate 

6 the Corporation for Public Broadcasting as the 

7 sole agent responsible for the distribution of 

8 funds under this section; and 

9 ‘‘(B) transfer the funds referred to in 

10 paragraph (1) to the Corporation for Public 

11 Broadcasting on a regular basis. 

12 ‘‘(3) GRANTS.—In making the distribution re13 ferred to in paragraph (1), the Corporation for Pub14 lic Broadcasting shall utilize a competitive grant ap15 plication process that is governed by criteria that en16 sures that funds are directed to the creation of lo17 cally delivered digital education and learning serv18 ices, ensures the diversity of licensee types, and en19 sures that geographic service areas are adequately 

20 served. The Corporation for Public Broadcasting 

21 shall develop such criteria in consultation with public 

22 television licensee permittees and representatives 

23 designated by their national organizations. 

24 ‘‘(f) ACCOUNTABILITY AND REPORTING.— 

25 ‘‘(1) REPORT.— 
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1 ‘‘(A) IN GENERAL.—Not later than April 

2 30 of each year, the Director of the Trust shall 

3 prepare a report for the preceding fiscal year 

4 that contains the information described in sub5 paragraph (B). 

6 ‘‘(B) CONTENTS.—A report under sub7 paragraph (A) shall include— 

8 ‘‘(i) a comprehensive and detailed re9 port of the Trust’s operations, activities, fi10 nancial condition, and accomplishments, 

11 and such recommendations as the Director 

12 of the Trust determines appropriate; 

13 ‘‘(ii) a comprehensive and detailed in14 ventory of funds distributed from the 

15 Trust during the fiscal year for which the 

16 report is being prepared; and 

17 ‘‘(iii) an independent audit of the 

18 Trust Fund’s finances and operations, and 

19 of the implementation of the goals estab20 lished by the Board. 

21 ‘‘(C) STATEMENT OF THE BOARD.—Each 

22 report under subparagraph (A) shall include a 

23 statement from the Board containing— 

24 ‘‘(i) a clear description of the plans 

25 and priorities of the Board for the subse-
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1 quent 5-year period for expenditures from 

2 the Trust Fund; and 

3 ‘‘(ii) an estimate of the funds that will 

4 be available for such expenditures from the 

5 Trust Fund. 

6 ‘‘(D) SUBMISSION TO THE PRESIDENT AND

7 CONGRESS.—A report under this subsection 

8 shall be submitted to the President and the 

9 Committee on Energy and Commerce of the 

10 House of Representatives and the Committee 

11 on Commerce, Science, and Transportation of 

12 the Senate. 

13 ‘‘(2) TESTIMONY.—The Director and principal 

14 officers of the Trust shall testify before the appro15 priate committees of Congress, upon request of such 

16 committees, with respect to— 

17 ‘‘(A) a report prepared under paragraph 

18 (1)(A); and 

19 ‘‘(B) any other matter that such commit20 tees may determine appropriate. 

21 ‘‘(g) INVESTMENT OF TRUST FUNDS.— 

22 ‘‘(1) IN GENERAL.—The Secretary of the 

23 Treasury, after consultation with the Director of the 

24 Trust, shall invest the funds of the Trust in interest25 bearing obligations of the United States or in obliga-
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1 tions guaranteed as to both principal and interest by 

2 the United States. 

3 ‘‘(2) EXPENDITURES.— 

4 ‘‘(A) IN GENERAL.—The Director of the 

5 Trust shall not undertake grant or contract ac6 tivities under this Act until the Trust has re7 ceived the interest or other proceeds from the 

8 investment of the Trust Funds for not less than 

9 1 year’s duration. Thereafter, upon Board ap10 proval of the annual budget of the Trust, the 

11 Director of the Trust may commence such 

12 grant or contract activities at the start of each 

13 fiscal year. 

14 ‘‘(B) OBLIGATION OF FUNDS.— 

15 ‘‘(i) IN GENERAL.—Except as pro16 vided in clauses (ii) and (iii), in awarding 

17 grants or contracts or making other ex18 penditures under this Act, the Director of 

19 the Trust shall not obligate funds from the 

20 Trust that exceed the proceeds received 

21 from the investment of the funds in the 

22 Trust Fund during the preceding fiscal 

23 year. 

24 ‘‘(ii) CARRY OVER.—Funds from the 

25 Trust Fund that are available for obliga-
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1 tion for a fiscal year that are not obligated 

2 for such fiscal year shall remain available 

3 for obligation for the succeeding fiscal 

4 year. 

5 ‘‘(iii) AVAILABILITY FOR AUDIT.—A 

6 portion of the proceeds received from the 

7 investment of the funds in the Trust Fund 

8 during any fiscal year shall be available for 

9 the conduct of the audit for such fiscal 

10 year required by subsection (f)(1)(B)(iii). 

11 ‘‘(h) USE OF FUNDS SUBJECT TO APPROPRIA12 TIONS.—The authority to make grants or enter into con13 tracts or otherwise to expend funds under this section is 

14 subject to such amounts as are provided in advance in ap15 propriations Acts.’’. 

16 (b) CONFORMING AMENDMENTS.— 

17 (1) COMMUNICATIONS ACT OF 1934.—Section 

18 309(j)(8) of the Communications Act of 1934 (47 

19 U.S.C. 309(j)(8)) is amended— 

20 (A) in subparagraph (A), by striking ‘‘sub21 paragraph (B) or subparagraph (D)’’ and in22 serting ‘‘subparagraph (B), (D), or (E)’’; and 

23 (B) by adding at the end the following new 

24 subparagraph: 
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1 ‘‘(E) ADDITIONAL DISPOSITION.—Except 

2 as provided in subparagraph (D), 30 percent of 

3 the cash proceeds of each auction completed 

4 after September 30, 2007, and through the last 

5 quarter of fiscal year 2027, shall be deposited 

6 in the Digital Opportunity Trust Fund estab7 lished under section 309A of this Act, and shall 

8 be available in accordance with that section.’’. 

9 (2) NTIAO ACT.—Paragraph (3) of section 

10 118(d) of the National Telecommunications and In11 formation Administration Organization Act is 

12 amended to read as follows: 

13 ‘‘(3) TRANSFER OF UNUSED FUNDS.—Any auc14 tion proceeds in the Fund that are remaining after 

15 the payment of the relocation costs that are payable 

16 from the Fund shall, not later than 8 years after the 

17 date of the deposit of such proceeds to the Reloca18 tion Trust Fund, be transferred to the Digital Op19 portunity Trust Fund established under section 

20 309A of this Act, and shall be available in accord21 ance with that section.’’. 

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