U.S. GOVERNMENT PRINTING OFFICE

WASHINGTON : 

1

99–010

" SENATE ! 107TH CONGRESS

2d Session 

REPORT

2002

107–207

Calendar No. 487

NTIA DIGITAL NETWORK TECHNOLOGY 

PROGRAM ACT REPORT

REPORT

OF THE

COMMITTEE ON COMMERCE, SCIENCE, AND 

TRANSPORTATION

on

S. 414

JULY 9, 2002.—Ordered to be printed 


congress.#13
(II)

SENATE COMMITTEE ON COMMERCE, SCIENCE, AND TRANSPORTATION 

ONE HUNDRED SEVENTH CONGRESS

SECOND SESSION

ERNEST F. HOLLINGS, South Carolina, Chairman 

DANIEL K. INOUYE, Hawaii 

JOHN D. ROCKEFELLER IV, West Virginia 

JOHN F. KERRY, Massachusetts 

JOHN B. BREAUX, Louisiana 

BYRON L. DORGAN, North Dakota 

RON WYDEN, Oregon 

MAX CLELAND, Georgia 

BARBARA BOXER, California 

JOHN EDWARDS, North Carolina 

JEAN CARNAHAN, Missouri 

BILL NELSON, Florida 

JOHN MCCAIN, Arizona 

TED STEVENS, Alaska 

CONRAD BURNS, Montana 

TRENT LOTT, Mississippi 

KAY BAILEY HUTCHISON, Texas 

OLYMPIA SNOWE, Maine 

SAM BROWNBACK, Kansas 

GORDON SMITH, Oregon 

PETER G. FITZGERALD, Illinois 

JOHN ENSIGN, Nevada 

GEORGE ALLEN, Virginia 

KEVIN D. KAYES, Staff Director 

MOSES BOYD, Chief Counsel 

GREGG ELIAS, General Counsel 

JEANNE BUMPUS, Republican Staff Director and General Counsel 

ANN BEGEMAN, Republican Deputy Staff Director

Calendar No. 487

107TH CONGRESS REPORT " SENATE ! 2d Session 107–207

NTIA DIGITAL NETWORK TECHNOLOGY PROGRAM ACT

JULY 9, 2002.—Ordered to be printed 

Mr. HOLLINGS, from the Committee on Commerce, Science, and 

Transportation, submitted the following 

R E P O R T 

[To accompany S. 414]

The Committee on Commerce, Science, and Transportation, to 

which was referred the bill (S. 414) to amend the National Telecommunications and Information Administration Organization Act 

to establish a digital network technology program, and for other 

purposes, having considered the same, reports favorably thereon 

with amendments and recommends that the bill (as amended) do 

pass. 

PURPOSE OF THE BILL

The purpose of the bill, as amended, is to establish a new grant 

program within the National Telecommunications and Information 

Administration (NTIA) of the Department of Commerce to provide 

not more than $250 million for Fiscal Years 2003 through 2007 to 

help address the technology gap that exists at many Minority-Serving Institutions (MSIs), such as Historically Black Colleges and 

Universities (HBCUs), Hispanic-Serving Institutions, and Tribal 

Colleges. 

BACKGROUND AND NEEDS

Because of the rapid advancement and growing dependence on 

technology, access to the Internet has become more critical to economic and educational advancement. The President’s Information 

Technology Advisory Committee estimated in its February 2000 report, Resolving the Digital Divide: Information, Access, and Opportunity, that sixty percent of all jobs will require information technology skills. This report also found that jobs in the information 

technology industry pay significantly higher salaries than non-information technology-related jobs. Therefore, people who lack acVerDate Jun 13 2002 17:33 Jul 11, 2002 Jkt 099012 PO 00000 Frm 00003 Fmt 6659 Sfmt 6601 E:\PICKUP\SR207.XXX pfrm20 PsN: SR207
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cess to information technology tools will be at an increasing disadvantage as they seek employment opportunities in the 21st Century. Consequently, it is crucial that all institutions of higher education provide their students with access to the most current information technology (IT). 

Nonetheless, the testimony provided to the Committee’s Subcommittee on Science, Technology, and Space at a February 27, 

2002, hearing showed that MSIs lack basic IT infrastructure. For 

example, an October 2000 study completed by the Department of 

Commerce and the National Association for Equal Opportunity in 

Higher Education entitled, Historically Black Colleges and Universities: An Assessment of Networking and Connectivity, showed that 

while 95 percent of the 80 respondents to the survey have a campus network comprised of voice, data and voice, and/or data only, 

half of those HBCUs surveyed did not have computers available in 

the location most accessible to students—their dormitories. Additionally, the majority of HBCUs are not using high-speed 

connectivity to the Internet, and only 3 percent of these colleges 

and universities indicated that financial aid was available to help 

their students close the computer ownership gap. 

LEGISLATIVE HISTORY

S. 414 was introduced on February 28, 2001, by Senator Cleland. 

Senators Hollings, Stevens, Inouye, Breaux, Miller, Reid, Kerry, 

Johnson, Mikulski, Akaka, Carnahan, Landrieu, Allen, Boxer, and 

Edwards are co-sponsors of the legislation. 

The Subcommittee on Science, Space, and Technology held a 

hearing on S. 414 on February 27, 2002. Witnesses included Dr. 

Antonio Flores, President and CEO, Hispanic Association of Colleges and Universities; the Honorable William Gray, III, President 

and CEO, United Negro College Fund; Dr. Frederick S. Humphries, 

President and CEO, National Association for Equal Opportunity in 

Higher Education (NAFEO); Dr. Gerald ‘‘Carty’’ Monette, President, Turtle Mountain Community College and Chairman, Committee on Technology, American Indian Higher Education Consortium; Dr. Juliet V. Garcı ́a, President, University of Texas at 

Brownsville and Texas Southmost College; Dr. Marie V. 

McDemmond, President, Norfolk State University; Mr. George 

Sandoval, Network Administrator, Dine ́ College; and the Honorable 

Louis Sullivan, MD, President, Morehouse School of Medicine, Immediate Past President, Atlanta University Center Council of 

Presidents and former Secretary of Health and Human Services 

during the Administration of President George H.W. Bush. These 

witnesses discussed the information technology resources needs of 

MSIs. 

On May 16, 2002, the Committee met in open executive session 

and ordered S. 414 reported with an amendment. The amendment 

clarified the bill’s intent and modified the authorization level to 

$250 million for the period covering Fiscal Years 2003 through 

2007.

ESTIMATED COSTS

In accordance with paragraph 11(a) of rule XXVI of the Standing 

Rules of the Senate and section 403 of the Congressional Budget 

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Act of 1974, the Committee provides the following cost estimate, 

prepared by the Congressional Budget Office:

S. 414—NTIA Digital Network Technology Program Act 

Summary: S. 414 would establish a new grant program within 

the National Telecommunications and Information Administration’s 

(NTIA’s) Technology Opportunities Program in the Department of 

Commerce. Authorizations under the bill would total $250 million 

over the 2003–2007 period, and CBO estimates that appropriation 

of the authorized levels would result in additional outlays of the 

same amount. 

Enacting the bill would not affect direct spending or receipts; 

therefore, pay-as-you-go procedures would not apply. 

S. 414 contains no intergovernmental or private-sector mandates 

as defined in the Unfunded Mandates Reform act (UMRA) and 

would impose no costs on state, local, or tribal governments. 

Estimated cost to the Federal Government: The estimated budgetary impact of S. 414 is shown in the following table. The costs 

of this legislation fall within budget function 500 (education, training, employment, and social services). The estimate assumes that 

outlays will follow historical spending rates for similar competitive 

grant programs.

By fiscal year, in millions of dollars—

2002 2003 2004 2005 2006 2007

SPENDING SUBJECT TO APPROPRIATION

Digital network technology program: 

Estimated authorization level ................................. 0 250 0 0 0 0

Estimated outlays .................................................... 0 18 115 68 50 0

Note.—Components may not sum to totals because of rounding. 

S. 414 would create a new digital network technology grant program and authorize not more than $250 million for the 2003–2007 

period. CBO assumes the full amount is authorized in 2003. If the 

authorized amount is appropriated in 2003, outlays would increase 

by $18 million in the first year and by $250 million over the 2003–

2006 period. 

The Technology Opportunities Program awards grants to state 

and local government and nonprofit organizations to enhance the 

delivery of social services, such as education, through technology. 

S. 414 would create a new grant program for historically black colleges and universities, Hispanic-serving institutions, tribally controlled colleges or universities, Alaska Native-serving institutions, 

Native Hawaiian-serving institutions, and other institutions enrolling a substantial number of minority, low-income students. 

Institutions would apply for grants to help them acquire equipment and instruction in digital network technologies. Grants would 

be awarded through a competitive process and the recipients would 

be required to provide matching funds. 

Pay-as-you-go considerations: None. 

Intergovernmental and private-sector impact: S. 414 contains no 

intergovernmental or private-sector mandates as defined in UMRA 

and would impose no costs on state, local, or tribal governments. 

The bill would benefit public universities by authorizing $250 million in grants for institutions of higher education, including public 

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universities, to strengthen their capacity to provide instruction in 

digital network technologies. Any costs incurred by states to participate in this program would be voluntary. 

Estimate prepared by: Federal costs: Donna Wong; impact on 

state, local, and tribal governments: Elyse Goldman; impact on the 

private sector: Cecil McPherson. 

Estimate approved by: Peter H. Fontaine, Deputy Assistant Director for Budget Analysis.

REGULATORY IMPACT STATEMENT

In accordance with paragraph 11(b) of rule XXVI of the Standing 

Rules of the Senate, the Committee provides the following evaluation of the regulatory impact of the legislation, as reported: 

NUMBER OF PERSONS COVERED

The Committee believes that the bill would not subject any individuals or businesses affected by the legislation to any additional 

regulation. 

ECONOMIC IMPACT

This legislation would not have an adverse economic impact on 

the Nation. It authorizes funding for information technology-related grants to MSIs. 

PRIVACY

This legislation would not have a negative impact on the personal privacy of individuals. 

PAPERWORK

This legislation would require each grant recipient to provide an 

annual report to the Secretary of Commerce (Secretary) on its use 

of the funding. In addition, S. 414 would require the Secretary, in 

consultation with the Secretary of Education, to review the annual 

reports and evaluate the digital network technologies program 

based on these reports and, at the end of the third year, conduct 

an evaluation describing the program’s activities and assessing the 

short-range and long-range impact of those activities. Based on this 

evaluation, the Secretary would submit a report to Congress, within one year, which would include recommendations on the continuing need for Federal support of the program. 

SECTION-BY-SECTION ANALYSIS

Section 1 would set forth the Short Title, ‘‘NTIA Digital Network 

Technology Program Act.’’

Section 2 would establish a program to address the technology 

gap that exists at many MSIs by amending the National Telecommunications and Information Administration Organization Act 

(47 U.S.C. 901 et seq.) by adding a new Part D, The Digital Network Technology Program as follows: 

New Section 171 of Part D would direct the Secretary to establish a digital network technologies program within the NTIA’s 

Technology Opportunities Program. The purpose of the digital network technologies program is to strengthen the ability of MSIs to 

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provide instruction in digital network technologies via grants, contracts or cooperative agreements between NTIA and an MSI. 

New section 172 of Part D would set forth the specific activities 

that may be supported via a grant, contract or cooperative agreement under the digital network technologies program, including: 

(1) Acquiring equipment, instrumentation, networking capability, hardware and software, digital network technology, and 

infrastructure; 

(2) Developing and providing educational services; 

(3) Providing teacher education, library and media specialist 

training, and preschool and teacher aid certification to individuals seeking to acquire or enhance technology skills in order to 

use technology in the classroom or instructional process; 

(4) Implementing joint projects to provide education regarding technology in the classroom with a State or State education 

agency, local education agency, community-based organization, 

national non-profit organization, or business; or 

(5) Providing professional development to those with institutional responsibility for technology education. 

New Section 173 of Part D would describe application and review 

procedures and provisions for peer review of applications. To be eligible for a grant, an MSI would submit an application to the Secretary to be reviewed by a peer-review panel established by the 

Secretary. In selecting the members for such panel, the Secretary 

may consult with appropriate cabinet-level officials, representatives 

of non-Federal organizations, and representatives of eligible institutions to ensure that the membership of such panel reflects membership of the minority higher education community, including 

Federal agency personnel and other individuals who are knowledgeable about issues regarding MSIs. 

New section 174 of Part D, would require an applicant MSI to 

commit to non-Federal cost-sharing (directly or through donations 

from public or private entities) in the amount of the lesser of 25 

percent or $500,000. This cost-sharing would be waived for any institution or consortium with an endowment of less than $50 million. 

New Section 175 of Part D would make an institution that receives a grant that exceeds $2,500,000 ineligible to receive another 

grant until every other eligible institution has received a grant 

through the Digital Network Technologies Program. 

Under new section 176 of Part D each grant recipient would be 

required to provide an annual report to the Secretary on its use of 

the funding. In addition, this section would require the Secretary, 

in consultation with the Secretary of Education, to review the annual reports from the grant receipts and evaluate the digital network technologies program based on these reports. At the end of 

the third year, the Secretary would evaluate the activities undertaken by institutions and assess their short-range and long-range 

impact. The Secretary would be required to issue and submit the 

report to the Congress within one year after such evaluation. The 

report would include recommendations concerning the need for continued Federal support of the program.

Using the meaning of the terms as defined by the Higher Education Act of 1965, section 3 of the reported bill would define eligible institutions as HBCUs and consortia thereof; Hispanic-serving 

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institutions; Tribally controlled colleges or universities; Alaska Native-serving institutions; and Native Hawaiian-serving institutions. 

In addition, any institution determined by the Secretary, in consultation with the Secretary of Education, to have enrolled a substantial number of minority, low-income students during the previous academic year who received assistance under subpart I of 

part A of title IV of the Higher Education Act of 1965 for that year, 

would be eligible. 

Section 4 would authorize appropriations of not more than $250 

million for the five year period covering fiscal years 2003 through 

2007 to carry out Part D of the NTIA Organization Act. 

CHANGES IN EXISTING LAW

In compliance with paragraph 12 of rule XXVI of the Standing 

Rules of the Senate, changes in existing law made by the bill, as 

reported, are shown as follows (existing law proposed to be omitted 

is enclosed in black brackets, new material is printed in italic, existing law in which no change is proposed is shown in roman): 

NATIONAL TELECOMMUNICATIONS AND INFORMATION 

ADMINISTRATION ORGANIZATION ACT 

TITLE I—NATIONAL TELECOMMUNICATIONS AND INFORMATION

ADMINISTRATION

SEC. 102. DEFINITIONS; FINDINGS; POLICY 

[47 U.S.C. 901]

(a) DEFINITIONS.—In this title, the following definitions apply: 

(1) The term ‘‘NTIA’’ means the National Telecommunications and Information Administration. 

(2) The term ‘‘Assistant Secretary’’ means the Assistant Secretary for Communications and Information. 

(3) The term ‘‘Secretary’’ means the Secretary of Commerce. 

(4) The term ‘‘Commission’’ means the Federal Communications Commission. 

(5) The term ‘‘Corporation’’ means the Communications Satellite Corporation authorized in title III of the Communications 

Satellite Act of 1962 (47 U.S.C. 731 et seq.).

(6) The term ‘‘eligible institution’’ means an institution that 

is—

(A) a historically Black college or university that is a 

part B institution, as defined in section 322(2) of the Higher Education Act of 1965 (20 U.S.C. 1061(2)), an institution 

described in section 326(e)(1)(A), (B), or (C) of that Act (20 

U.S.C. 1063b(e)(1)(A), (B), or (C)), or a consortium of institutions described in this subparagraph; 

(B) a Hispanic-serving institution, as defined in section 

502(a)(5) of the Higher Education Act of 1965 (20 U.S.C. 

1101a(a)(5)); 

(C) a tribally controlled college or university, as defined 

in section 316(b)(3) of the Higher Education Act of 1965 (20 

U.S.C. 1059c(b)(3)); 

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(D) an Alaska Native-serving institution under section 

317(b) of the Higher Education Act of 1965 (20 U.S.C. 

1059d(b)); 

(E) a Native Hawaiian-serving institution under section 

317(b) of the Higher Education Act of 1965 (20 U.S.C. 

1059d(b)); or 

(F) an institution determined by the Secretary, in consultation with the Secretary of Education, to have enrolled 

a substantial number of minority, low-income students during the previous academic year who received assistance 

under subpart I of part A of title IV of the Higher Education Act of 1965 (20 U.S.C. 1070a et seq.) for that year.

(b) FINDINGS.—The Congress finds the following: 

(1) Telecommunications and information are vital to the public welfare, national security, and competitiveness of the 

United States. 

(2) Rapid technological advances being made in the telecommunications and information fields make it imperative that 

the United States maintain effective national and international 

policies and programs capable of taking advantage of continued 

advancements. 

(3) Telecommunications and information policies and recommendations advancing the strategic interests and the international competitiveness of the United States are essential aspects of the Nation’s involvement in international commerce. 

(4) There is a critical need for competent and effective telecommunications and information research and analysis and 

national and international policy development, advice, and advocacy by the executive branch of the Federal Government. 

(5) As one of the largest users of the Nation’s telecommunications facilities and resources, the Federal Government must 

manage its radio spectrum use and other internal communications operations in the most efficient and effective manner possible. 

(6) It is in the national interest to codify the authority of the 

National Telecommunications and Information Administration, 

an agency in the Department of Commerce, as the executive 

branch agency principally responsible for advising the President on telecommunications and information policies, and for 

carrying out the related functions it currently performs, as reflected in Executive Order 12046. 

(c) POLICY.—The NTIA shall seek to advance the following policies: 

(1) Promoting the benefits of technological development in 

the United States for all users of telecommunications and information facilities.

(2) Fostering national safety and security, economic prosperity, and the delivery of critical social services through telecommunications. 

(3) Facilitating and contributing to the full development of 

competition, efficiency, and the free flow of commerce in domestic and international telecommunications markets. 

(4) Fostering full and efficient use of telecommunications resources, including effective use of the radio spectrum by the 

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Federal Government, in a manner which encourages the most 

beneficial uses thereof in the public interest. 

(5) Furthering scientific knowledge about telecommunications and information. 

* * * * * * *

PART D—DIGITAL NETWORK TECHNOLOGY PROGRAM 

SEC. 171. PROGRAM AUTHORIZED. 

The Secretary shall establish, within the NTIA’s Technology Opportunities Program a digital network technologies program to 

strengthen the ability of eligible institutions to provide capacity for 

instruction in digital network technologies by providing grants to, 

or executing contracts or cooperative agreements with, those institutions to provide such instruction. 

SEC. 172. ACTIVITIES SUPPORTED. 

An eligible institution shall use a grant, contract, or cooperative 

agreement awarded under this part—

(1) to acquire the equipment, instrumentation, networking capability, hardware and software, digital network technology, 

and infrastructure; 

(2) to develop and provide educational services, including faculty development, to prepare students or faculty seeking a degree or certificate that is approved by the State, or a regional 

accrediting body recognized by the Secretary of Education; 

(3) to provide teacher education, library and media specialist 

training, and preschool and teacher aid certification to individuals who seek to acquire or enhance technology skills in order 

to use technology in the classroom or instructional process; 

(4) to implement a joint project to provide education regarding technology in the classroom with a State or State education 

agency, local education agency, community-based organization, 

national non-profit organization, or business, including minority business or a business located in HUB zones, as defined by 

the Small Business Administration; or 

(5) to provide professional development to administrators and 

faculty of eligible institutions with institutional responsibility 

for technology education. 

SEC. 173. APPLICATION AND REVIEW PROCEDURE. 

(a) IN GENERAL.—To be eligible to receive a grant, contract, or cooperative agreement under this part, an eligible institution shall 

submit an application to the Secretary at such time, in such manner, and accompanied by such information as the Secretary may 

reasonably require. The Secretary, in consultation with the panel 

described in subsection (b), shall establish a procedure by which to 

accept such applications and publish an announcement of such procedure, including a statement regarding the availability of funds, in 

the Federal Register. 

(b) PEER REVIEW PANEL.—The Secretary shall establish a peer review panel to aid the Secretary in establishing the application procedure described in subsection (a) and selecting applicants to receive 

grants, contracts, and cooperative agreements under section 171. In 

selecting the members for such panel, the Secretary may consult 

with appropriate cabinet-level officials, representatives of non-FedVerDate Jun 13 2002 17:33 Jul 11, 2002 Jkt 099012 PO 00000 Frm 00010 Fmt 6659 Sfmt 6603 E:\PICKUP\SR207.XXX pfrm20 PsN: SR207
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eral organizations, and representatives of eligible institutions to ensure that the membership of such panel reflects membership of the 

minority higher education community, including Federal agency 

personnel and other individuals who are knowledgeable about 

issues regarding minority education institutions. 

SEC. 174. MATCHING REQUIREMENT. 

The Secretary may not award a grant, contract, or cooperative 

agreement to an eligible institution under this part unless such institution agrees that, with respect to the costs to be incurred by the 

institution in carrying out the program for which the grant, contract, or cooperative agreement was awarded, such institution will 

make available (directly or through donations from public or private entities) non-Federal contributions in an amount equal to 1⁄4 of 

the amount of the grant, contract, or cooperative agreement awarded 

by the Secretary, or $500,000, whichever is the lesser amount. The 

Secretary shall waive the matching requirement for any institution 

or consortium with no endowment, or an endowment that has a current dollar value lower than $50,000,000. 

SEC. 175. LIMITATION. 

An eligible institution that receives a grant, contract, or cooperative agreement under this part that exceeds $2,500,000, shall not be 

eligible to receive another grant, contract, or cooperative agreement 

under this part until every other eligible institution has received a 

grant, contract, or cooperative agreement under this part. 

SEC. 176. ANNUAL REPORT AND EVALUATION. 

(a) ANNUAL REPORT REQUIRED FROM RECIPIENTS.—Each institution that receives a grant, contract, or cooperative agreement under 

this part shall provide an annual report to the Secretary on its use 

of the grant, contract, or cooperative agreement. 

(b) EVALUATION BY SECRETARY.—The Secretary, in consultation 

with the Secretary of Education, shall—

(1) review the reports provided under subsection (a) each 

year; 

(2) evaluate the program authorized by section 171 on the 

basis of those reports; and 

(3) conduct an evaluation at the end of the third year. 

(c) CONTENTS OF EVALUATION.—The Secretary, in the evaluation, 

shall describe the activities undertaken by those institutions and 

shall assess the short-range and long-range impact of activities carried out under the grant, contract, or cooperative agreement on the 

students, faculty, and staff of the institutions 

(d) REPORT TO CONGRESS.—The Secretary shall submit a report 

to the Congress based on the evaluation within 1 year after conducting the evaluation. In the report, the Secretary shall include 

such recommendations, including recommendations concerning the 

continuing need for Federal support of the program, as may be appropriate.

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