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 fol-
lowing bill; which was referred to the Committee on Energy and Com-
merce, and in addition to the Committee on Education and the Work-
force, 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. 
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 ‘‘Digital Opportunity 
Investment Trust Act’’. 
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) In addition, the use of auctions as an effi-
cient mechanism to assign licenses generated funds 
that were deposited for general revenue purposes in 
the United States Treasury. 
(5) Auction proceeds from the competitive bid-
ding for wireless licenses can additionally be utilized 
to foster the use of educational technology, promote 
deployment of public telecommunications infrastruc-
ture, and establish a self-sustaining trust fund for 
grants to transform education, skills training, and 
lifelong learning. 
(6) 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 and many citizens lack the skill set nec-
essary to compete for jobs in a 21st Century digital 
economy. 
(7) 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. 
(8) 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 all of 
our citizens are prepared for the new economy. 
(9) The creation of a self-sustaining mechanism 
to make available annual funding for needed public 
access and educational technology grants is an ap-
propriate use of revenue generated from corporate 
use of the public’s airwaves and consistent with the 
public interest. 
(10) A policy that promotes investment in wire-
less technology and services along with a concomi-
tant investment in the educational, cultural, and 
telecommunications resources available to all our 
citizens is in the national economic interest of the 
United States.
SEC. 3. ESTABLISHMENT OF TRUST FUND. 
(a) AMENDMENT.—Part I of title III of the Commu-
nications Act of 1934 is amended by inserting after sec-
tion 309 (47 U.S.C. 309) the following new section: 
‘‘SEC. 309A. DIGITAL OPPORTUNITY INVESTMENT TRUST 
FUND. 
‘‘(a) ESTABLISHMENT.—There is established a non-
profit corporation to be known as the ‘Digital Opportunity 
Investment Trust’ (referred to in this Act as the ‘Trust’) 
which shall not be an agency or establishment of the 
United States Government. The Trust shall be subject to 
the provisions of this section, and, to the extent consistent 
with this section, to theDistrict of Columbia Nonprofit 
Corporation Act (D.C. Code, section 29–501 et seq.). 
‘‘(b) FUNDING.— 
‘‘(1) IN GENERAL.—There is established in the 
Treasury a separate fund to be known as the ‘Dig-
ital Opportunity Investment Trust Fund’ (referred 
to in this Act as the ‘Trust Fund’). The Trust Fund 
shall contain such amounts as are credited to the 
Trust Fund under paragraph (2) and any interest 
earned on the investment of amounts in the Trust 
Fund under subsection (g). 
‘‘(2) DEPOSIT
OF
FUNDS.—The Trust Fund 
shall be credited with the amounts specified in— 
‘‘(A) section 309(j)(8)(E) of this Act; and
‘‘(B) section 118(d)(3) of the National 
Telecommunications and Information Adminis-
tration Organization Act. 
‘‘(c) BOARD OF DIRECTORS; FUNCTIONS, AND DU-
TIES.— 
‘‘(1) IN GENERAL.—A board of directors of the 
Trust (referred to in this Act as the ‘Board’) shall 
be established to oversee the administration of the 
Trust. Such Board shall consist of 9 members to be 
appointed by the President, who— 
‘‘(A) reflect representation from the public 
and private sectors; 
‘‘(B) are not regular full-time employees of 
the Federal Government; 
‘‘(C) are eminent in such fields as tele-
communications, information technology, labor 
and workforce development, education, cultural 
and civic affairs, or the arts and humanities; 
and 
‘‘(D) shall provide, as nearly as prac-
ticable, a broad representation of various re-
gions of the United States, various professions 
and occupations, and various kinds of talent 
and experience appropriate to the functions and 
responsibilities of the Trust.
‘‘(2) RECOMMENDATIONS.—The Majority Lead-
er of the Senate, the Minority Leader of the Senate, 
the Speaker of the House of Representatives, and 
the Minority Leader of the House of Representatives 
shall submit to the President recommendations of 
individuals to serve as members of the Board. 
‘‘(3) TERMS OF APPOINTMENT.— 
‘‘(A) DATE.—Members of the Board shall 
be appointed not later than 90 days after the 
date of enactment of this Act. 
‘‘(B) TERMS.— 
‘‘(i) IN
GENERAL.—Except as pro-
vided in clause (ii), each member of the 
Board shall be appointed for a 3-year term 
with terms set to expire in non-Federal 
election years. 
‘‘(ii) STAGGERED
TERMS.—With re-
spect to the initial members of the 
Board— 
‘‘(I) 3 members shall serve for a 
term of 3 years; 
‘‘(II) 3 members shall serve for a 
term of 2 years; and 
‘‘(III) 3 members shall serve for 
a term of 1 year.
‘‘(C) VACANCIES.—A vacancy in the mem-
bership of the Board shall not affect the 
Board’s powers, and shall be filled in the same 
manner as the original member was appointed. 
‘‘(4) CHAIR AND VICE-CHAIR.— 
‘‘(A) SELECTION.—The Board shall select, 
from among the members of the Board, an indi-
vidual to serve for a 2-year term as Chair of the 
Board and an individual to serve for a 2-year 
term as vice-Chair of the Board. 
‘‘(B) CONSECUTIVE TERMS.—An individual 
may not serve for more than 3 consecutive 
terms as Chair of the Board. 
‘‘(5) MEETINGS.— 
‘‘(A) FIRST MEETING.—Not later than 30 
days after the date on which all of the members 
of the Board have been appointed by the Presi-
dent, the Chair of the Board shall call the first 
meeting of the Board. 
‘‘(B) QUORUM.—A majority of the mem-
bers of the Board shall constitute a quorum, 
but a lesser number of members may hold hear-
ings. 
‘‘(6) BOARD PERSONNEL MATTERS.—
‘‘(A) COMPENSATION.—Members of the 
Board shall not receive compensation, allow-
ances, or benefits by reason of the members’ 
service on the Board. 
‘‘(B) TRAVEL
EXPENSES.—The members 
of the Board shall be allowed travel expenses, 
including per diem in lieu of subsistence, at 
rates authorized for employees of agencies 
under subchapter I of chapter 57 of title 5, 
United States Code, while away from their 
homes or regular places of business in the per-
formance of services for the Board. 
‘‘(C) SALARIES AND EXPENSES.—No offi-
cer or employee of the Trust may be com-
pensated by the Trust at an annual rate of pay 
which exceeds the rate of basic pay in effect for 
level I of the Executive Schedule under section 
5312 of Title 5, United States Code. 
‘‘(7) DIRECTOR.—A majority of the members of 
the Board shall select a Director of the Trust who 
shall serve at the discretion of the Board and shall 
be responsible for instituting procedures to carry out 
the policies and priorities established by the Board, 
and for hiring all personnel of the Trust.
‘‘(8) ADDITIONAL REQUIREMENTS AND LIMITA-
TIONS.— 
‘‘(A) FIDELITY.—No individual other than 
a citizen of the United States may be an officer 
of the Trust. No officer of the Trust may re-
ceive any salary or other compensation (except 
for compensation for services on boards of di-
rectors of other organizations that do not re-
ceive funds from the Trust, on committees of 
such boards, and in similar activities for such 
organizations) from any sources other than the 
Trust for services rendered during the period of 
his or her employment by the Trust. Service by 
any officer on boards of directors of other orga-
nizations, on committees of such boards, and in 
similar activities for such organizations shall be 
subject to annual advance approval by the 
Board and subject to the provisions of the 
Trust’s Statement of Ethical Conduct. All offi-
cers shall serve at the pleasure of the Board. 
‘‘(B) NONPARTISANSHIP.—No political test 
or qualification shall be used in selecting, ap-
pointing, promoting, or taking other personnel 
actions with respect to officers, agents, and em-
ployees of the Trust. The Trust may not con-
tribute to or otherwise support any political 
party or candidate for elective public office. 
‘‘(C) 
NONPROFIT
NATURE
OF
THE 
TRUST.—The Trust shall have no power to 
issue any shares of stock, or to declare or pay 
any dividends. No part of the income or assets 
of the Trust shall inure to the benefit of any di-
rector, officer, employee, or any other individual 
except as salary or reasonable compensation for 
services. 
‘‘(d) TRUST FUND USES.— 
‘‘(1) USES OF FUNDS.—To achieve the objec-
tives of this Act, the Director of the Trust, after 
consultation with the Board, may use Trust funds— 
‘‘(A) to help underwrite the digitization of 
the collections in the Nation’s universities, mu-
seums, libraries, public broadcasting stations, 
and cultural institutions; 
‘‘(B) to support basic and applied re-
search, development, and demonstrations of in-
novative learning and assessment systems as 
well as the components and tools needed to cre-
ate them; and 
‘‘(C) to use the research results developed 
under subparagraph (B) to create prototype ap-
plications designed to meet learning objectives 
in a variety of subject areas and designed for 
learners with many different educational back-
grounds, including— 
‘‘(i) strengthening instruction in read-
ing, science, mathematics, history, and the 
arts in elementary and secondary schools, 
particularly in academically struggling 
school districts; 
‘‘(ii) providing the training needed for 
people now in the workplace to advance in 
a constantly changing work environment; 
‘‘(iii) training needed for teachers to 
utilize new tools and technologies in the 
classroom; and 
‘‘(iv) instruction in community cen-
ters, libraries, community colleges, univer-
sities, other institutions of higher edu-
cation, and through public television and 
radio stations; 
‘‘(v) supporting projects that enhance 
the access of individuals with disabilities to 
advanced telecommunications services; and
‘‘(vi) supporting after-school programs 
with youths focused on computer literacy 
and education. 
‘‘(2) CONTRACTS AND GRANTS.— 
‘‘(A) IN GENERAL.—In order to carry out 
the activities described in paragraph (1), the 
Director of the Trust, with the agreement of a 
majority of the members of the Board, may 
award contracts and grants to nonprofit organi-
zations and public institutions (with or without 
private partners). 
‘‘(B) PUBLIC DOMAIN.— 
‘‘(i) IN GENERAL.—The research and 
development properties and materials asso-
ciated with a project in which a majority 
of the funding used to carry out the 
project is from a grant or contract under 
this Act shall be freely and nonexclusively 
available to the general public in a timely 
manner. 
‘‘(ii) EXEMPTION.—The Director of 
the Trust may exempt specific projects 
from the requirement of clause (i) if the 
Director of the Trust and a majority of the 
members of the Board determine that the
general public will benefit significantly due 
to the project not being freely and non-
exclusively available to the general public 
in a timely manner. 
‘‘(C) PEER REVIEW.—To the extent prac-
ticable, proposals for grants or contracts shall 
be evaluated on the basis of comparative merit 
by panels of experts who represent diverse in-
terests and perspectives, and who are appointed 
by the Director of the Trust from recommenda-
tions from the fields served and from the Board 
of Directors. 
‘‘(e) SPECIAL ACCOUNT FOR DISTRIBUTION TO EDU-
CATIONAL TELEVISION STATIONS.— 
‘‘(1) RESERVATION.—An amount equivalent to 
21 percent of the interest derived from the invest-
ment proceeds of the amounts deposited in the Trust 
Fund under section 309(j)(8)(E) of this Act shall be 
reserved in a special account within the Trust Fund 
for distribution on a regular basis to those non-
commercial educational television broadcast stations 
(as defined in section 397(6) of this Act that are 
qualified to receive grants from the Corporation for 
Public 
Broadcasting 
pursuant 
to 
section
396(k)(6)(B) of this Act and to the Public Broad-
casting Service in partnership with such stations. 
‘‘(2) RESPONSIBILITY
FOR
DISTRIBUTION.— 
The Director of the Trust shall— 
‘‘(A) through a special contract, designate 
the Corporation for Public Broadcasting as the 
sole agent responsible for the distribution of 
funds under this section; and 
‘‘(B) transfer the funds referred to in 
paragraph (1) to the Corporation for Public 
Broadcasting on a regular basis. 
‘‘(3) GRANTS.—In making the distribution re-
ferred to in paragraph (1), the Corporation for Pub-
lic Broadcasting shall utilize a competitive grant ap-
plication process that is governed by criteria that en-
sures that funds are directed to the creation of lo-
cally delivered digital education and learning serv-
ices, ensures the diversity of licensee types, and en-
sures that geographic service areas are adequately 
served. The Corporation for Public Broadcasting 
shall develop such criteria in consultation with public 
television licensee permittees and representatives 
designated by their national organizations. 
‘‘(f) ACCOUNTABILITY AND REPORTING.— 
‘‘(1) REPORT.—
‘‘(A) IN GENERAL.—Not later than April 
30 of each year, the Director of the Trust shall 
prepare a report for the preceding fiscal year 
that contains the information described in sub-
paragraph (B). 
‘‘(B) CONTENTS.—A report under sub-
paragraph (A) shall include— 
‘‘(i) a comprehensive and detailed re-
port of the Trust’s operations, activities, fi-
nancial condition, and accomplishments, 
and such recommendations as the Director 
of the Trust determines appropriate; 
‘‘(ii) a comprehensive and detailed in-
ventory of funds distributed from the 
Trust during the fiscal year for which the 
report is being prepared; and 
‘‘(iii) an independent audit of the 
Trust Fund’s finances and operations, and 
of the implementation of the goals estab-
lished by the Board. 
‘‘(C) STATEMENT OF THE BOARD.—Each 
report under subparagraph (A) shall include a 
statement from the Board containing— 
‘‘(i) a clear description of the plans 
and priorities of the Board for the subse-
quent 5-year period for expenditures from 
the Trust Fund; and 
‘‘(ii) an estimate of the funds that will 
be available for such expenditures from the 
Trust Fund. 
‘‘(D) SUBMISSION TO THE PRESIDENT AND 
CONGRESS.—A report under this subsection 
shall be submitted to the President and the 
Committee on Energy and Commerce of the 
House of Representatives and the Committee 
on Commerce, Science, and Transportation of 
the Senate. 
‘‘(2) TESTIMONY.—The Director and principal 
officers of the Trust shall testify before the appro-
priate committees of Congress, upon request of such 
committees, with respect to— 
‘‘(A) a report prepared under paragraph 
(1)(A); and 
‘‘(B) any other matter that such commit-
tees may determine appropriate. 
‘‘(g) INVESTMENT OF TRUST FUNDS.— 
‘‘(1) IN
GENERAL.—The Secretary of the 
Treasury, after consultation with the Director of the 
Trust, shall invest the funds of the Trust in interest- 
bearing obligations of the United States or in obliga-
tions guaranteed as to both principal and interest by 
the United States. 
‘‘(2) EXPENDITURES.— 
‘‘(A) IN GENERAL.—The Director of the 
Trust shall not undertake grant or contract ac-
tivities under this Act until the Trust has re-
ceived the interest or other proceeds from the 
investment of the Trust Funds for not less than 
1 year’s duration. Thereafter, upon Board ap-
proval of the annual budget of the Trust, the 
Director of the Trust may commence such 
grant or contract activities at the start of each 
fiscal year. 
‘‘(B) OBLIGATION OF FUNDS.— 
‘‘(i) IN
GENERAL.—Except as pro-
vided in clauses (ii) and (iii), in awarding 
grants or contracts or making other ex-
penditures under this Act, the Director of 
the Trust shall not obligate funds from the 
Trust that exceed the proceeds received 
from the investment of the funds in the 
Trust Fund during the preceding fiscal 
year. 
‘‘(ii) CARRY OVER.—Funds from the 
Trust Fund that are available for obliga-
tion for a fiscal year that are not obligated 
for such fiscal year shall remain available 
for obligation for the succeeding fiscal 
year. 
‘‘(iii) AVAILABILITY
FOR
AUDIT.—A 
portion of the proceeds received from the 
investment of the funds in the Trust Fund 
during any fiscal year shall be available for 
the conduct of the audit for such fiscal 
year required by subsection (f)(1)(B)(iii). 
‘‘(h) USE
OF FUNDS SUBJECT
TO APPROPRIA-
TIONS.—The authority to make grants or enter into con-
tracts or otherwise to expend funds under this section is 
subject to such amounts as are provided in advance in ap-
propriations Acts.’’. 
(b) CONFORMING AMENDMENTS.— 
(1) COMMUNICATIONS
ACT
OF
1934.—Section 
309(j)(8) of the Communications Act of 1934 (47 
U.S.C. 309(j)(8)) is amended— 
(A) in subparagraph (A), by striking ‘‘sub-
paragraph (B) or subparagraph (D)’’ and in-
serting ‘‘subparagraph (B), (D), or (E)’’; and 
(B) by adding at the end the following new 
subparagraph:
‘‘(E) ADDITIONAL
DISPOSITION.—Except 
as provided in subparagraph (D), 30 percent of 
the cash proceeds of each auction completed 
after September 30, 2007, and through the last 
quarter of fiscal year 2027, shall be deposited 
in the Digital Opportunity Trust Fund estab-
lished under section 309A of this Act, and shall 
be available in accordance with that section.’’. 
(2) NTIAO ACT.—Paragraph (3) of section 
118(d) of the National Telecommunications and In-
formation 
Administration 
Organization 
Act 
is 
amended to read as follows: 
‘‘(3) TRANSFER OF UNUSED FUNDS.—Any auc-
tion proceeds in the Fund that are remaining after 
the payment of the relocation costs that are payable 
from the Fund shall, not later than 8 years after the 
date of the deposit of such proceeds to the Reloca-
tion Trust Fund, be transferred to the Digital Op-
portunity Trust Fund established under section 
309A of this Act, and shall be available in accord-
ance with that section.’’. 
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