Entitled the `Digital Opportunity Investment Trust Act'.

November 12, 2003

Mr. DODD (for himself, Ms. SNOWE, and Mr. DURBIN) introduced the following bill; which was read twice and referred to the Committee on Commerce, Science, and Transportation

Entitled the `Digital Opportunity Investment Trust Act'.

Be it enacted by the Senate and House of Representatives 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. 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 4.

(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 30 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) fees derived from the usage of the publicly owned electromagnetic spectrum, excluding the fees imposed by the Federal Communications Commission to defray the costs of the Commission's operations associated with the electromagnetic spectrum.

(c) ADMINISTRATION OF THE TRUST-

(1) BOARD-

(A) ESTABLISHMENT- A board (referred to in this Act as the `Board') shall be established to oversee the administration of Trust funds, consisting of 9 members appointed by the President, by and with the advice and consent of the Senate, who--

(i) reflect representation from the public and private sectors;

(ii) are not regular full-time employees of the Federal Government;

(iii) are eminent in such fields as education, telecommunications, information technology, labor and workforce development, 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) RECOMMENDATIONS- The Majority Leader 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.

(C) TERMS OF APPOINTMENT-

(i) DATE- Members of the Board shall be appointed not later than 90 days after the date of enactment of this Act.

(ii) TERMS-

(I) IN GENERAL- Each member of the Board shall be appointed for 6 years (except as provided in subclause (II)), with terms set to expire in non-Federal election years.

(II) STAGGERED TERMS- From the first Board--

(aa) 3 members shall serve for a term of 6 years;

(bb) 3 members shall serve for a term of 4 years; and

(cc) 3 members shall serve for a term of 2 years.

(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) CHAIR AND VICE-CHAIR-

(i) SELECTION- The Board shall select, from among the members of the Board, an individual 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.

(ii) CONSECUTIVE TERMS- An individual may not serve for more than 2 consecutive terms as Chair of the Board.

(E) MEETINGS-

(i) FIRST MEETING- Not later than 30 days after the date on which all of the members of the Board have been confirmed, the Chair of the 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.

(F) 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.

(2) 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 hiring all personnel of the Trust and instituting procedures to carry out the policies and priorities established by the Board.

(d) TRUST FUND USES-

(1) USES OF FUNDS- In order to achieve the objectives 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, museums, libraries, and cultural institutions;

(B) to enable schools, community colleges, universities, libraries, museums, civic organizations, cultural, arts, and 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;

(C) to support basic and applied research, development, and demonstrations of innovative-based learning systems, including assessment tools and other system components;

(D) to develop applications of research, including the creation of prototypes, models, and pilot projects, as well as the initial production of content and software for digital and information technologies for use in educational curricula and other educational purposes, including job training, skills training, public safety, civic information, and lifelong learning;

(E) to develop innovative technologies for training and dissemination of public information for safety and homeland security;

(F) to develop new tools and means of dissemination for innovative advances in job training and retraining; and

(G) to conduct assessments of legal, regulatory, and other issues that must be resolved to ensure rapid development and use of advanced learning technologies and legislative or other remedies that may remove barriers or create incentives that can help make use of the innovations developed pursuant to this Act.

(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) and competent for-profit organizations and individuals.

(B) PUBLIC DOMAIN-

(i) IN GENERAL- The research and development properties and materials associated 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.

(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 in the long run due to the project not being freely and nonexclusively available to the general public.

(C) 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.

(3) COOPERATION- The Director of the Trust, after consultation with 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.

SEC. 3. ACCOUNTABILITY AND REPORTING.

(a) REPORT-

(1) IN GENERAL- Not later than April 30 of each year, the Director of the Trust shall prepare a report for the preceding fiscal year, ending September 30, and shall submit such report to the Assistant Secretary of the National Telecommunications and Information Administration.

(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 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 Assistant Secretary of the National Telecommunications and Information Administration shall submit the report received pursuant to paragraph (1) to the President and the appropriate committees of Congress.

(b) TESTIMONY- The Chair of the Board, other members of the Board, and the Director and principal officers of the Trust 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. 4. INVESTMENT OF TRUST FUNDS.

(a) IN GENERAL- The Director of the Trust, after consultation with the Board and the Director of the Office of Management and Budget, 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-

(1) IN GENERAL- The Director of the Trust 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 not less than 1 year's duration. Thereafter, upon approval 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.

(2) OBLIGATION OF FUNDS-

(A) IN GENERAL- Except as provided in subparagraph (B), in awarding grants or contracts or making other expenditures, 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 during the preceding fiscal year.

(B) CARRY OVER- Funds from the Trust that are available for obligation for a fiscal year that are not obligated for such fiscal year shall remain available for obligation for the succeeding fiscal year.

END