SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Digital Opportunity Investment Trust 
Act''.

SEC. 2. FINDINGS.

    Congress makes the following findings:
            (1) The First Morrill Act (7 U.S.C. 301 et seq.), enacted 
        in 1862, and the Second Morrill Act (7 U.S.C. 321 et seq.), 
        enacted in 1890, brought about a significant change in the 
        system of education in the United States by providing for the 
        sale of public lands in the West and the dedication of the 
        proceeds of those sales to funding the establishment of 
        practical, accessible land grant colleges and universities 
        across the Nation.
            (2) The land grant colleges and universities have a focus 
        on research, teaching, and outreach, and continue to this day 
        to be leaders in higher education by providing affordable 
        access to high-quality postsecondary education.
            (3) The land grant colleges and universities also emerged 
        as one of the greatest sources of advanced research that 
        leverages the United States economy and powers the Nation's 
        global competitiveness.
            (4) The land grant colleges and universities, in 
        conjunction with the Cooperative State Research, Education, and 
        Extension Service, serve to disseminate information learned 
        from research and link research activities to larger societal 
        needs.
            (5) The potential of advanced Internet, digital spectrum, 
        and other telecommunications technologies to increase the 
        quality and reach of educational resources has barely been 
        tapped.
            (6) Numerous local and regional educational and community 
        organizations are repositories of knowledge, information, and 
        educational resources and programs that, in terms of 
        accessibility to the potential beneficiaries, are fragmented 
        and uncoordinated.
            (7) The Telecommunications Act of 1996 and the Balanced 
        Budget Act of 1997 established a framework for the transitions 
        from analog to digital television and for the auction of 
        publicly owned analog spectrum.
            (8) It has been estimated that the auction of analog 
        spectrum could yield over $20,000,000,000 in revenues for the 
        Treasury of the United States.
            (9) It is both necessary and appropriate that a substantial 
        portion of the auction funds, stemming as they do from the 
        telecommunications sector, be returned for use in that sector. 
        Therefore, there should be created a multibillion dollar trust, 
        with the trust's funding coming from revenues earned by the 
        Federal Government from auctions of the publicly owned 
        electromagnetic spectrum, which is the 21st century equivalent 
        of the Nation's public lands of an earlier time.

SEC. 3. ESTABLISHMENT OF TRUST.

    (a) In General.--There is established a trust to be known as the 
``Digital Opportunity Investment Trust'' (referred to in this Act as 
the ``Trust'').
    (b) Funds.--
            (1) In general.--The Trust shall consist of such amounts as 
        are transferred to the Trust under paragraph (2) and any 
        interest earned on the investment of amounts in the Trust under 
        section 5.
            (2) Transfer of funds.--The Secretary of the Treasury shall 
        transfer each fiscal year quarter, through fiscal year 2020, 
        from the general fund of the Treasury to the Trust, an amount 
        equal to 50 percent of the cash payment received by the Federal 
        Government during the preceding fiscal year quarter from--
                    (A) auctions of the publicly owned electromagnetic 
                spectrum; and
                    (B) licensing fees derived from the publicly owned 
                electromagnetic spectrum.
    (c) Administration of the Trust.--
            (1) Director and deputy director of the trust.--The 
        chairman of the National Science Board shall appoint the 
        following:
                    (A) A Director of the Trust to administer the 
                Trust.
                    (B) A Deputy Director of the Trust to assist and 
                advise the Director of the Trust.
            (2) Advisory board.--
                    (A) Establishment.--An Advisory Board (referred to 
                in this Act as the ``Board'') shall be established to 
                advise in the administration of Trust funds, consisting 
                of 8 members who--
                            (i) are citizens of the United States;
                            (ii) are not regular full-time employees of 
                        the Federal Government;
                            (iii) are eminent in such fields as 
                        education, telecommunications or information 
                        technology, labor, cultural and civic affairs, 
                        or the arts and humanities; and
                            (iv) will provide, as nearly as 
                        practicable, a broad representation of various 
                        regions of the United States, various 
                        professions and occupations, and various kinds 
                        of talent and experience appropriate to the 
                        functions and responsibilities of the Trust.
                    (B) Appointment of members.--The members of the 
                Board shall be appointed as follows:
                            (i) 4 members of the Board shall be 
                        appointed by the President.
                            (ii) 2 members of the Board shall be 
                        appointed by--
                                    (I) the Majority Leader of the 
                                Senate, if such individual is not of 
                                the same political party as the 
                                President; or
                                    (II) the Minority Leader of the 
                                Senate, if such individual is not of 
                                the same political party as the 
                                President.
                            (iii) 2 members of the Board shall be 
                        appointed by--
                                    (I) the Majority Leader of the 
                                House of Representatives, if such 
                                individual is not of the same political 
                                party as the President; or
                                    (II) the Minority Leader of the 
                                House of Representatives, if such 
                                individual is not of the same political 
                                party as the President.
                    (C) Terms of appointment.--
                            (i) Date.--Members of the Board shall be 
                        appointed not later than 180 days after the 
                        date of enactment of this Act.
                            (ii) Terms.--Each member of the Board shall 
                        be appointed for the life of the Board.
                            (iii) Vacancies.--A vacancy on the Board 
                        shall not affect the Board's powers, and shall 
                        be filled in the same manner as the original 
                        member was appointed.
                    (D) Meetings.--
                            (i) First meeting.--Not later than 30 days 
                        after the date on which all of the members of 
                        the Board have been appointed, the chairman of 
                        the National Science Board shall call the first 
                        meeting of the Board.
                            (ii) Quorum.--A majority of the members of 
                        the Board shall constitute a quorum, but a 
                        lesser number of members may hold hearings.
                    (E) Board personnel matters.--
                            (i) Compensation.--Members of the Board 
                        shall receive no additional pay, allowances, or 
                        benefits by reason of the members' service on 
                        the Board.
                            (ii) 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 
                        performance of services for the Board.
                    (F) Duties.--
                            (i) In general.--Not later than 6 months 
                        after the Board first meets pursuant to 
                        subparagraph (D)(i), the Board shall complete 
                        and submit to the Director of the Trust and the 
                        Deputy Director of the Trust--
                                    (I) a management plan and 
                                implementation strategy for the Trust;
                                    (II) a detailed national research 
                                plan identifying critical challenges to 
                                telecommunications and education and 
                                the research and development needed to 
                                meet the challenges; and
                                    (III) recommendations on how best 
                                to manage the Trust.
                            (ii) Authorization of appropriations.--
                        There is authorized to be appropriated to carry 
                        out this subparagraph $4,000,000 for fiscal 
                        year 2003.
    (d) Trust Fund Uses.--
            (1) Uses of funds.--In order to achieve the objectives of 
        this Act, which include enhancing Federal education programs, 
        the Director of the Trust, after consultation with the Deputy 
        Director of the Trust and the Board, may use Trust funds--
                    (A) to supplement Federal funds for Federal 
                education programs;
                    (B) to serve as a venture capital fund for the 
                Nation's nonprofit educational and public service 
                institutions by being dedicated to innovation, 
                experimentation, and research in utilizing new 
                telecommunications and information technologies across 
                the widest possible range of public purposes;
                    (C) to invest in new and promising ideas and 
                prototypes that use advanced telecommunications and 
                information to deliver public information and education 
                in the broadest sense to all Americans throughout their 
                lifetimes;
                    (D) to enable schools, community colleges, 
                universities, libraries, museums, civic organizations, 
                and cultural, arts, humanities centers, and nonprofit 
                agencies or organizations described in section 
                501(c)(3) of the Internal Revenue Code of 1986 that are 
                exempt from tax under section 501(a) of such Code to 
                take advantage of innovative telecommunications and 
                information technologies to reach outside their walls 
                and into homes, schools, and the workplace;
                    (E) for innovative technologies to reach 
                nontraditional learners, including--
                            (i) senior citizens;
                            (ii) individuals with disabilities; and
                            (iii) members of the workforce; and
                    (F) to develop innovative strategies to improve--
                            (i) the teaching of mathematics and 
                        science; and
                            (ii) the academic achievement of students 
                        in mathematics and science.
            (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 public institutions (with or without private 
partners) for innovative and experimental ideas and techniques that--
                            (i) enhance learning;
                            (ii) broaden knowledge;
                            (iii) encourage an informed citizenry and 
                        self-government;
                            (iv) make available to all citizens of the 
                        United States the best of the Nation's arts, 
                        humanities, and culture; and
                            (v) teach the skills and disciplines needed 
                        in an information-based economy.
                    (B) Evaluation of proposals.--To the extent 
                practicable, proposals for such contracts or grants 
                shall be evaluated on the basis of comparative merit by 
                panels of experts who represent diverse interests and 
                perspectives, and who are appointed by the Director of 
                the Trust, after consultation with the Deputy Director 
                of the Trust and the Board.
                    (C) Training and education.--The Director of the 
                Trust, after consultation with the Deputy Director of 
                the Trust and the Board, in awarding the contracts and 
                grants under subparagraph (A), may use Trust funds to 
                finance the development and testing of innovative 
                models and materials for education in the use of new 
                telecommunications and information technologies.
            (3) Courses, materials, archives, software, information, 
        programs, resources, and services.--The Director of the Trust, 
        after consultation with the Deputy Director of the Trust and 
        the Board, may commission the development of online courses, 
        training materials, archives, software, civic information, 
        quality arts and cultural programs, and other digital resources 
        and services of the highest standards to meet the needs of all 
        United States citizens and help the citizens gain access to the 
        best minds and talents of society.
            (4) Cooperation.--The Director of the Trust, after 
        consultation with the Deputy Director of the Trust and the 
        Board, may cooperate with business, industry, philanthropy, and 
        local and national public service institutions, including 
        enhancing the work of such public service institutions by 
        seeking new ways to put telecommunications and information 
        technologies to work in their areas of interest.
            (5) Public broadcasting.--The Director of the Trust, after 
        consultation with the Deputy Director of the Trust and the 
        Board, may use public broadcasting's state-of-the-art digital 
        transmission system in carrying out the Trust's educational and 
        informational mission.

SEC. 4. CONGRESS.

    (a) Report.--
            (1) In general.--Not later than April 30 of each year, the 
        Director of the Trust, after consultation with the Deputy 
        Director of the Trust and the Board, shall prepare a report for 
        the preceding fiscal year, ending September 30, and shall 
        submit such report to the chairman of the National Science 
        Board.
            (2) Contents.--The report shall include--
                    (A) a comprehensive and detailed report of the 
                Trust's operations, activities, financial condition, 
                and accomplishments, and such recommendations as the 
                Director of the Trust, after consultation with the 
                Deputy Director of the Trust and the Board, determines 
                appropriate; and
                    (B) a comprehensive and detailed inventory of funds 
                distributed from the Trust during the preceding fiscal 
                year.
            (3) Submission to the president and congress.--The chairman 
        of the National Science Board shall promptly submit the report 
        prepared under paragraph (1) to the President and Congress.
    (b) Testimony.--The Director of the Trust, Deputy Director of the 
Trust, and members of the Board shall testify before appropriate 
committees of Congress, upon request of such committees, with respect 
to--
            (1) the report prepared under subsection (a)(1); and
            (2) any other matter that such committees may determine 
        appropriate.

SEC. 5. INVESTMENT OF TRUST FUNDS.

    (a) In General.--The Director of the Trust, after consultation with 
the Deputy Director of the Trust, the Board, the chairman of the 
National Science Board, and the Director of the Office of Personnel 
Management, shall invest the funds of the Trust in interest-bearing 
obligations of the United States or in obligations guaranteed as to 
both principal and interest by the United States.
    (b) Expenditures.--The Director of the Trust, after consultation 
with the Deputy Director of the Trust and the Board, shall not 
undertake grant or contract activities under this Act until the Trust 
has received the interest or other proceeds from the investment of the 
Trust funds for at least 1 year's duration. Thereafter, the Director of 
the Trust, after consultation with the Deputy Director of the Trust and 
the Board, may commence such grant or contract activities at the start 
of each fiscal year. The Director of the Trust, after consultation with 
the Deputy Director of the Trust and the Board, in awarding grants or 
contracts or making other expenditures, shall not obligate funds from 
the Trust that exceed the proceeds received from the investment of the 
funds in the Trust during the preceding fiscal year.
Output: Digital Opportunity Investment Trust Act - Establishes the Digital Opportunity Investment Trust (the Trust), which shall receive 50 percent of the cash payment received by the Federal Government each fiscal year quarter through FY 2020 from auctions of the publicly owned electromagnetic spectrum and spectrum-derived licensing fees.Establishes an Advisory Board with respect to administration of Trust funds.Permits the Director of the Trust to use Trust funds to: (1) supplement Federal funds for Federal education programs; (2) serve as a venture capital fund for American nonprofit educational and public service institutions by utilizing new telecommunications and information technologies; (3) invest in use of advanced telecommunications and information to deliver public information and education to all Americans; (4) enable schools, universities, libraries, museums, and other specified bodies to take advantage of information technologies; (5) use innovative technologies to reach nontraditional learners, including individuals with disabilities; and (6) further the teaching of mathematics and science.Allows the Director of the Trust to award contracts and grants to nonprofit public institutions (with or without private partners) for innovative and experimental ideas and techniques to enhance learning and achieve specified related goals.Directs the Director to invest funds of the Trust in U.S. interest bearing or U.S.-guaranteed obligations.