I 
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 pre-
paredness 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 tele-
communications, 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 Representa-
tives 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 as-
sets to the private sector for innovative wireless serv-
ices. 
(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 deploy-
ment 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 com-
mons’’ 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, includ-
ing the military, for relocation costs. 
(9) Auction proceeds can additionally be utilized 
to foster the use of educational technology, promote 
deployment of public telecommunications infrastruc-
ture, and establish a self-sustaining fund for grants 
to address the digital divide. 
(10) While more and more Americans are uti-
lizing 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 en-
hance the use of educational technology and to in-
crease 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 mecha-
nism to make available annual funding for needed 
public access and educational technology grants is 
an appropriate use of revenue generated from cor-
porate use of the public’s airwaves. 
(14) A policy that promotes investment in wire-
less technology along with a concomitant investment 
in the human resources of our Nation is in the na-
tional economic interest of the United States. 
TITLE 
I—TELECOMMUNI-
CATIONS 
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 es-
tablished 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 ad-
ministered under the direction of a board of directors 
(hereinafter in this section referred to as ‘the board’) com-
prised of—
‘‘(1) the Assistant Secretary for Communica-
tions and Information of the Department of Com-
merce; and 
‘‘(2) 6 additional members, appointed by the 
President, with experience in one or more of the fol-
lowing fields: investment management; corporate fi-
nance; computer software; telecommunications; and 
education and cultural heritage. 
‘‘(c) ADMINISTRATION; PRESERVATION
OF PRIN-
CIPAL.—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 in-
come is sufficient to cover the uses specified in subsection 
(d) and the other expected costs of carrying out the pur-
poses of this section. Such deposits shall not be expended 
for the support of any of the purposes authorized by sub-
section (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 in-
come for any fiscal year to the human capital tele-
communications investment program under section 
106 of the National Telecommunications and Infor-
mation Administration Organization Act. 
‘‘(2) BROADBAND
INFRASTRUCTURE
INVEST-
MENTS FOR PUBLIC ACCESS AND RURAL DEVELOP-
MENT.—Not to exceed 65 percent of the income for 
any fiscal year to the Public Broadband Infrastruc-
ture Investments Program under section 107 of the 
National Telecommunications and Information Ad-
ministration Organization Act.’’. 
SEC. 102. HUMAN CAPITAL TELECOMMUNICATIONS INVEST-
MENTS. 
Part A of the National Telecommunications and In-
formation 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 IN-
VESTMENTS. 
‘‘(a) GRANT PROGRAM AUTHORIZED.—From the 
funds available under section 309A(d)(1) of the Commu-
nications 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 sophisti-
cated, content-related educational software and pro-
gramming designed to enhance learning in elemen-
tary, secondary, and postsecondary education and to 
enable schools, libraries, and museums to reach out-
side 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 volun-
teers enrolled in the AmeriCorps and designated by 
the Corporation for National Service; 
‘‘(5) projects enhancing the access of individ-
uals with disabilities to advanced telecommunications 
services;
‘‘(6) projects for retraining workers and unem-
ployed 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 organi-
zations and agencies shall be eligible to apply for funds 
under this section: 
‘‘(1) an elementary, secondary, or postsec-
ondary 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 posses-
sion of the United States). 
‘‘(d) APPLICATION.—Any organization or entity seek-
ing a grant under this section shall submit to the Sec-
retary an application at such time, in such manner, and 
containing or accompanied by such information and assur-
ances as the Secretary may require by regulation.’’.