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[Senate Report 107-207]
[From the U.S. Government Publishing Office]

                                                       Calendar No. 487
107th Congress                                                   Report
                                 SENATE
 2d Session                                                     107-207
_______________________________________________________________________

          NTIA DIGITAL NETWORK TECHNOLOGY PROGRAM ACT REPORT

                               __________

                              R E P O R T

                                 OF THE

           COMMITTEE ON COMMERCE, SCIENCE, AND TRANSPORTATION

                                    on

                                 S. 414

                                     

                  July 9, 2002.--Ordered to be printed
                               __________

                    U.S. GOVERNMENT PRINTING OFFICE
99-010                    WASHINGTON : 2002

       SENATE COMMITTEE ON COMMERCE, SCIENCE, AND TRANSPORTATION
                      one hundred seventh congress
                             second session

              ERNEST F. HOLLINGS, South Carolina, Chairman
DANIEL K. INOUYE, Hawaii             JOHN McCAIN, Arizona
JOHN D. ROCKEFELLER IV, West         TED STEVENS, Alaska
    Virginia                         CONRAD BURNS, Montana
JOHN F. KERRY, Massachusetts         TRENT LOTT, Mississippi
JOHN B. BREAUX, Louisiana            KAY BAILEY HUTCHISON, Texas
BYRON L. DORGAN, North Dakota        OLYMPIA SNOWE, Maine
RON WYDEN, Oregon                    SAM BROWNBACK, Kansas
MAX CLELAND, Georgia                 GORDON SMITH, Oregon
BARBARA BOXER, California            PETER G. FITZGERALD, Illinois
JOHN EDWARDS, North Carolina         JOHN ENSIGN, Nevada
JEAN CARNAHAN, Missouri              GEORGE ALLEN, Virginia
BILL NELSON, Florida
                     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 access 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. Garcia, 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 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 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 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 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));
                  (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 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-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 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 thematching 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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