I
107TH CONGRESS
2D SESSION
H. R. 4641
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
MAY 2, 2002
Mr. MARKEY 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 ‘‘Wireless Technology
Investment and Digital Dividends Act of 2002’’.
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) A continuation of our competition-based
spectrum policy can promote innovation, create jobs,
lower prices, and increase consumer choice in the
marketplace.
(6) 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.
(7) Spectrum auctions will reap revenue that
can be used to compensate incumbent users, includ-
ing the military, for relocation costs.
(8) 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.
(9) 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.
(10) 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.
(11) 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.
(12) 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.
(13) 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(c)(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.’’.
SEC. 103. PUBLIC BROADBAND INFRASTRUCTURE INVEST-
MENTS.
Part A of the National Telecommunications and In-
formation 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 INVEST-
MENTS PROGRAM.
‘‘(a) GRANT PROGRAM AUTHORIZED.—From the
funds available under section 309A(c)(2) of the Commu-
nications Act of 1934, the Secretary shall carry out a Pub-
lic Broadband Infrastructure Investments Program in ac-
cordance 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 ex-
pand public access to advanced telecommuni-
cations and information services at locations
that are accessible to the general public;
‘‘(B) 
deployment 
of 
broadband 
tele-
communications services in unserved rural
areas; and
‘‘(C) 
deployment 
of 
broadband 
tele-
communications services to low-income housing
and community centers.
‘‘(2) 
REQUIRED
USES.—Not 
to 
exceed
$300,000,000 from the funds available under section
309A(c)(2) of the Communications Act of 1934 for
each of the first 5 fiscal years shall be made avail-
able 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 organi-
zations 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 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.’’.