[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1412 Introduced in House (IH)]
<DOC>
118th CONGRESS
1st Session
H. R. 1412
To establish the Foundation for Digital Equity, and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
March 7, 2023
Ms. Matsui (for herself, Ms. Bonamici, Ms. Eshoo, Mr. Smith of
Washington, Mr. Grijalva, and Mr. Carter of Louisiana) introduced the
following bill; which was referred to the Committee on Energy and
Commerce
_______________________________________________________________________
A BILL
To establish the Foundation for Digital Equity, and for other purposes.
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 Equity Foundation Act of
2023''.
SEC. 2. FOUNDATION FOR DIGITAL EQUITY.
(a) Definitions.--In this section:
(1) Assistant secretary.--The term ``Assistant Secretary''
means the Assistant Secretary of Commerce for Communications
and Information.
(2) Board.--The term ``Board'' means the Board of Directors
described in subsection (d)(1).
(3) Business incubator.--The term ``business incubator''
has the meaning given the term in section 3 of the Native
American Business Incubators Program Act (25 U.S.C. 5802).
(4) Commission.--The term ``Commission'' means the Federal
Communications Commission.
(5) Committee.--The term ``Committee'' means the Committee
for the Establishment of the Foundation for Digital Equity
established under subsection (b).
(6) Community anchor institution; covered household;
covered populations.--The terms ``community anchor
institution'', ``covered household'', and ``covered
populations'' have the meanings given those terms in section
60302 of the Digital Equity Act of 2021 (47 U.S.C. 1721).
(7) Department.--The term ``Department'' means the
Department of Commerce.
(8) Digital equity.--The term ``digital equity'' means the
condition in which individuals and communities have the
information technology capacity that is needed for full
participation in the society and economy of the United States.
(9) Digital inclusion.--The term ``digital inclusion''--
(A) means the activities that are necessary to
ensure that all individuals in the United States have
access to, and the use of, affordable information and
communication technologies, such as--
(i) reliable fixed and wireless broadband;
(ii) internet-enabled devices that meet the
needs of the user for telehealth, remote work,
remote schooling, or other purposes; and
(iii) applications and online content
designed to enable and encourage self-
sufficiency, participation, and collaboration;
and
(B) includes--
(i) obtaining access to digital literacy
training;
(ii) the provision of quality technical
support; and
(iii) obtaining basic awareness of measures
to ensure online privacy and cybersecurity.
(10) Digital literacy.--The term ``digital literacy'' means
the skills associated with using technology to enable users to
find, evaluate, organize, create, and communicate information.
(11) Executive director.--The term ``Executive Director''
means the Executive Director of the Foundation described in
subsection (f)(1).
(12) Foundation.--The term ``Foundation'' means the
Foundation for Digital Equity established under subsection (c).
(13) Institution of higher education.--The term
``institution of higher education'' means--
(A) an institution of higher education, as that
term is defined in section 101 of the Higher Education
Act of 1965 (20 U.S.C. 1001); or
(B) a postsecondary vocational institution, as that
term is defined in section 102(c) of the Higher
Education Act of 1965 (20 U.S.C. 1002(c)).
(14) Minority-serving institution.--The term ``Minority-
serving institution'' means an institution described in any of
paragraphs (1) through (7) of section 371(a) of the Higher
Education Act of 1965 (20 U.S.C. 1067q(a)).
(15) NTIA.--The term ``NTIA'' means the National
Telecommunications and Information Administration.
(16) Older individual.--The term ``older individual'' has
the meaning given the term in section 101 of the Older
Americans Act of 1965 (42 U.S.C. 3001).
(17) Secretary.--The term ``Secretary'' means the Secretary
of Commerce.
(18) Small business investment company.--The term ``small
business investment company'' has the meaning given the term in
section 103 of the Small Business Investment Act of 1958 (15
U.S.C. 662).
(19) Startup.--The term ``startup'' has the meaning given
the term ``start-up business'' in section 362(f)(5)(C) of the
Energy Policy and Conservation Act (42 U.S.C. 6322(f)(5)(C)).
(20) Tribal broadband connectivity program.--The term
``Tribal Broadband Connectivity Program'' means the program
established pursuant to section 905(c) of division N of the
Consolidated Appropriations Act, 2021 (47 U.S.C. 1305 note).
(b) Committee for the Establishment of the Foundation for Digital
Equity.--
(1) In general.--Not later than 90 days after the date of
enactment of this Act, the Secretary shall establish the
Committee for the Establishment of the Foundation for Digital
Equity.
(2) Members.--The Committee shall be composed of 5
members--
(A) who shall be appointed by the officials
described in subsection (d)(2)(B)(i);
(B) each of whom shall be a voting member of the
Committee;
(C) not fewer than 3 of whom shall have broad and
general experience in matters relating to digital
equity, digital inclusion, or digital literacy; and
(D) not less than 1 of whom shall have broad and
general experience in working with private nonprofit
organizations.
(3) Functions.--The functions of the Committee are as
follows:
(A) To carry out such activities as may be
necessary to incorporate the Foundation under the laws
of a State, including by--
(i) serving as the incorporators for the
Foundation; and
(ii) ensuring that the articles of
incorporation for the Foundation require that
the Foundation is operated in accordance with
the requirements of this section.
(B) To ensure that the Foundation qualifies for and
(during the period in which the Committee is in
existence) maintains the status described in subsection
(c)(4).
(C) To provide for the initial operation of the
Foundation, including by ensuring that the Foundation
has adequate facilities, equipment, and staff.
(D) To appoint initial voting members of the Board
who satisfy the requirements under subsection (d)(2)(C)
and have such other qualifications as the Committee
determines appropriate with respect to those members.
(4) Chair.--The Committee shall, from among the members of
the Committee, designate a member of the Committee to serve as
Chair of the Committee.
(5) Term.--
(A) In general.--Each member of the Committee shall
serve for the duration of the Committee.
(B) Vacancies.--
(i) No effect on authority.--A vacancy in
the membership of the Committee shall not
affect the authority of the Committee to carry
out the functions of the Committee.
(ii) Replacement.--If a member of the
Committee does not serve for the duration of
the Committee, the individual appointed to fill
that vacancy shall be appointed by the ex
officio members of the Board for the remainder
of the applicable term.
(6) Compensation.--A member of the Committee--
(A) shall not receive compensation for service on
the Committee; and
(B) may be reimbursed for travel, subsistence, and
other necessary expenses incurred in carrying out the
functions of the Committee.
(7) Termination.--The Committee shall--
(A) complete the functions of the committee
described in paragraph (3) not later than 180 days
after the date on which the Secretary establishes the
Committee under paragraph (1); and
(B) terminate on the date that is 30 days after the
date on which the Secretary determines that the
Committee has completed the functions described in
paragraph (3).
(c) Establishment.--
(1) In general.--Not later than 180 days after the date of
enactment of this Act, the Secretary shall establish a
nonprofit corporation to be known as the ``Foundation for
Digital Equity''.
(2) Mission.--The mission of the Foundation shall be--
(A) to supplement, but not supplant, the work of
the NTIA and the Commission in promoting the benefits
of technological development in the United States, and
of high-capacity, affordable broadband connectivity in
particular, for all users of telecommunications and
information facilities;
(B) to raise, leverage, or match funding from other
entities, including philanthropic organizations, the
private sector, and State and local governments, to
promote digital literacy, digital inclusion, and
digital equity for communities with low rates of
adoption of broadband;
(C) to develop programs and partnerships to--
(i) spur greater rates of adoption of
broadband among covered populations;
(ii) collaborate with State, local, and
Tribal governments, Minority-serving
institutions, other anchor institutions, and
stakeholders in the communications, education,
business, and technology fields;
(iii) publicize and incentivize the
adoption of evidence-based programs;
(iv) convene organizations and partnerships
with related goals and interests to establish
problem-solving processes;
(v) strengthen and share best practices
relating to--
(I) projects promoting digital
inclusion, digital literacy, and
digital equity; and
(II) regional economic development;
(vi) support job creation and workforce
development; and
(vii) support the goals of the Tribal
Broadband Connectivity Program; and
(D) to promote equitable access to, and the
adoption of, broadband technologies and digital
applications that support accessibility, telehealth,
distance learning, and online access to governmental
benefits and services, including by preventing,
detecting, and remedying digital discrimination.
(3) Limitation.--The Foundation shall not be an agency or
instrumentality of the Federal Government or any State or local
government.
(4) Tax-exempt status.--The Board shall take all necessary
and appropriate steps to ensure that the Foundation is an
organization that is described in section 501(c) of the
Internal Revenue Code of 1986 and exempt from taxation under
section 501(a) of that Code.
(d) Board of Directors.--
(1) Establishment.--The Foundation shall be governed by a
Board of Directors.
(2) Composition.--
(A) In general.--The Board shall be composed of the
ex officio members described in subparagraph (B) and
the appointed voting members described in subparagraph
(C).
(B) Ex officio members.--
(i) Members.--The ex officio members of the
Board shall be the following individuals (or
designees of those individuals):
(I) The Secretary.
(II) The Assistant Secretary.
(III) The Chairman of the
Commission.
(IV) The Secretary of the Treasury.
(V) The Under Secretary of
Agriculture for Rural Development.
(ii) Nonvoting members.--The ex officio
members of the Board shall be nonvoting members
of the Board.
(C) Appointed members.--
(i) Representation.--The appointed members
of the Board shall reflect a broad cross-
section of stakeholders from academia,
industry, nonprofit and civil rights
organizations, community-based practitioners of
efforts to promote digital inclusion, State or
local governments, local school districts and
libraries, other community anchor institutions,
and the philanthropic community.
(ii) Experience.--Each appointed member of
the Board shall--
(I)(aa) have experience promoting
digital equity, digital inclusion, and
digital literacy;
(bb) have experience in the
technology sector;
(cc) have experience in the
telecommunications and broadband
sector;
(dd) have direct experience working
with covered populations; or
(ee) have research experience in
foundation operations; and
(II) to the extent practicable,
represent diverse regions, sectors, and
the communities corresponding to the
covered populations that are the focus
of the activities of the Foundation.
(3) Chair and vice chair.--
(A) In general.--The Board shall designate, from
among the appointed members of the Board--
(i) an individual to serve as Chair of the
Board; and
(ii) an individual to serve as Vice Chair
of the Board.
(B) Terms.--The term of service of the Chair and
Vice Chair of the Board shall end on the earlier of--
(i) the date that is 3 years after the date
on which the Chair or Vice Chair of the Board,
as applicable, is designated for the position;
and
(ii) the last day of the term of service of
the member, as determined under paragraph
(4)(A), who is designated to be Chair or Vice
Chair of the Board, as applicable.
(C) Representation.--The Chair and Vice Chair of
the Board--
(i) shall not be representatives of the
same area of subject matter expertise, or
entity, as applicable, under paragraph
(2)(C)(ii); and
(ii) shall not be representatives of any
area of subject matter expertise, or entity, as
applicable, represented by the immediately
preceding Chair and Vice Chair of the Board.
(4) Terms and vacancies.--
(A) Terms.--
(i) In general.--The term of service of
each appointed member of the Board shall be not
more than 5 years.
(ii) Initial appointed members.--Of the
initial members of the Board appointed under
subsection (b)(3)(D), \1/2\ of the members
shall serve for 4 years and \1/2\ of the
members shall serve for 5 years, as determined
by the Chair of the Board.
(B) Vacancies.--Any vacancy in the membership of
the appointed members of the Board--
(i) shall be filled by a majority vote of
the appointed members of the Board in
accordance with the bylaws of the Foundation;
(ii) shall not affect the power of the
remaining appointed members to execute the
duties of the Board; and
(iii) shall be filled by an individual
selected by the Board.
(5) Meetings; quorum.--
(A) Initial meeting.--Not later than 60 days after
the date on which all of the members of the Board have
been appointed, the Secretary shall convene a meeting
of the ex officio and appointed members of the Board to
establish the bylaws of the Foundation in accordance
with paragraph (7).
(B) Quorum.--A majority of the appointed members of
the Board shall constitute a quorum for purposes of
conducting the business of the Board.
(6) Duties.--The Board shall--
(A) provide overall direction for the activities of
the Foundation and establish priority activities;
(B) provide guidance to the Executive Director such
that the Executive Director may carry out any other
necessary activities of the Foundation;
(C) evaluate the performance of the Executive
Director; and
(D) actively solicit and accept funds, gifts,
grants, devises, or bequests of real or personal
property to the Foundation, including from private
entities.
(7) Bylaws.--
(A) In general.--The bylaws established under
paragraph (5)(A) may include--
(i) policies for the selection of Board
members and officers, employees, agents, and
contractors of the Foundation;
(ii) policies, including ethical standards,
for--
(I) the acceptance, solicitation,
and disposition of donations and grants
to the Foundation, including
appropriate limits on the ability of
donors to designate, by stipulation or
restriction, the use or recipient of
donated funds; and
(II) the disposition of assets of
the Foundation;
(iii) policies that subject all employees,
fellows, trainees, contractors, consultants,
and other agents of the Foundation (including
ex officio and appointed members of the Board)
to conflict of interest standards; and
(iv) the specific duties of the Executive
Director.
(B) Requirements.--The Board shall ensure that the
bylaws of the Foundation and the activities carried out
under those bylaws shall not--
(i) reflect unfavorably on the ability of
the Foundation to carry out activities in a
fair and objective manner; or
(ii) compromise, or appear to compromise,
the integrity of any Federal agency or program,
or any officer or employee employed by, or
involved in, such an agency or program.
(8) Compensation.--
(A) In general.--No member of the Board shall
receive compensation for serving as a member of the
Board.
(B) Reimbursement of certain expenses.--In
accordance with the bylaws of the Foundation, members
of the Board may be reimbursed for travel expenses,
including per diem in lieu of subsistence, and other
necessary expenses incurred in carrying out the duties
of the Board.
(e) Activities.--
(1) Studies, competitions, and projects.--The Foundation
may conduct and support studies, competitions, projects, and
other activities that further the mission of the Foundation
described in subsection (c)(2).
(2) Grants.--
(A) In general.--The Foundation may award grants
for activities relating to digital equity, digital
inclusion, or digital literacy.
(B) Selection.--In selecting a recipient for a
grant awarded under subparagraph (A), the Foundation--
(i) shall make the selection based on the
comparative merits of--
(I) the proposed project of the
potential recipient;
(II) the impact of the project
described in subclause (I) on promoting
digital equity in local communities;
and
(III) the alignment of the project
described in subclause (I) with--
(aa) the overall goals of
the Foundation relating to
diversity on the basis of
geography;
(bb) the type of need
addressed by the project; and
(cc) other factors
specified in the strategic plan
and grant guidelines of the
Foundation; and
(ii) may consult with a potential recipient
regarding the ability of the potential
recipient to carry out various projects that
would further the mission of the Foundation
described in subsection (c)(2).
(3) Accessing facilities and expertise.--The Foundation may
work with the Secretary and the Commission--
(A) to leverage the capabilities and facilities of
the Department and the Commission; and
(B) to assist with resources, including by
providing information on assets of the Department and
the Commission that may enable the promotion of digital
equity, digital inclusion, or digital literacy.
(4) Training and education.--The Foundation may support
programs that provide training to researchers, scientists, and
other relevant personnel at the Department, the Commission, and
institutions of higher education to help promote digital
equity, digital inclusion, and digital literacy.
(5) Stakeholder engagement.--The Foundation shall convene,
and may consult with, representatives from the Department, the
Commission, institutions of higher education, the private
sector, public interest stakeholders, and commercialization
organizations to develop programs for the mission of the
Foundation described in subsection (c)(2) and to advance the
activities of the Foundation.
(6) For-profit subsidiaries.--
(A) In general.--The Foundation may establish 1 or
more for-profit subsidiaries, including an impact
investment fund--
(i) to stimulate economic development
activities relating to the mission of the
Foundation described in subsection (c)(2); and
(ii) to attract for-profit investment
partners for digital equity, digital inclusion,
and digital literacy activities.
(B) Authorities of the for-profit subsidiary.--A
for-profit subsidiary established under subparagraph
(A) may--
(i) enter into a partnership with an
economic development corporation, including a
business incubator or small business investment
company;
(ii) pay for the cost of building and
administering a facility, including a business
incubator, to support the activities of the
Foundation described in this subsection; and
(iii) provide funding to a startup.
(7) Supplemental programs.--The Foundation may carry out
supplemental programs--
(A) to conduct and support forums, meetings,
conferences, courses, and training workshops consistent
with the mission of the Foundation described in
subsection (c)(2);
(B) to support and encourage the understanding and
development of--
(i) data collection that provides clarity
with respect to inequities and community needs
in order to promote digital equity, digital
inclusion, and digital literacy; and
(ii) policies that make regulation more
effective and efficient by leveraging the data
collection efforts described in clause (i) for
the regulation of relevant technology sectors;
(C) for writing, editing, printing, publishing, and
selling books and other materials relating to efforts
carried out by the Foundation, the Department, or the
Commission; and
(D) to conduct other activities to carry out and
support the mission of the Foundation described in
subsection (c)(2).
(8) Evaluations.--The Foundation shall support the
development of an evaluation methodology, to be used as part of
any program supported by the Foundation, that shall--
(A) consist of qualitative and quantitative
metrics;
(B) include periodic third party evaluation of the
programs and other activities of the Foundation; and
(C) be made publicly available.
(9) Communications.--The Foundation shall develop an
expertise in communications to--
(A) disseminate awareness of funding opportunities
among community-based organizations that serve covered
populations; and
(B) promote the work of grant and fellowship
recipients under paragraph (2), the successes of the
Foundation, opportunities for partnership with the
Foundation, and other activities.
(10) Tribal broadband connectivity grants.--The Foundation
may support a grant made under the Tribal Broadband
Connectivity Program if there are not adequate appropriations
to support such a grant.
(f) Administration.--
(1) Executive director.--The Board shall appoint an
Executive Director of the Foundation, who shall serve at the
pleasure of the Board.
(2) Administrative control.--No member of the Board, any
officer or employee of the Foundation, any officer or employee
of any program established by the Foundation, or any
participant in a program established by the Foundation may
exercise administrative control over any Federal employee.
(3) Strategic plan.--Not later than 1 year after the date
of enactment of this Act, the Foundation shall submit to the
Committee on Commerce, Science, and Transportation of the
Senate and the Committee on Energy and Commerce of the House of
Representatives a strategic plan that, incorporating the input
of the community advisory committee convened under subsection
(g)(1), contains--
(A) a description of the initial focus areas of,
and primary purposes for, each program, grant, or award
opportunity that the Foundation plans to implement
during the 2-year period beginning on the date on which
the strategic plan is submitted;
(B) a description of the efforts that the
Foundation will take to be transparent in the processes
of the Foundation, including processes relating to--
(i) grant awards, including selection,
review, and notification with respect to those
awards; and
(ii) communication of past, current, and
future digital equity priorities;
(C) a description of the financial goals and
benchmarks of the Foundation for the 10-year period
beginning on the date on which the report is submitted;
and
(D) a description of the efforts undertaken by the
Foundation to ensure maximum complementarity and
minimum redundancy with investments made by the
Secretary and the Commission.
(4) Recurring report.--Not later than 1 year after the date
on which the Foundation is established, and once every 2 years
thereafter, the Foundation shall make publicly available, and
shall submit to the Committee on Commerce, Science, and
Transportation of the Senate, the Committee on Commerce and
Energy of the House of Representatives, and the Secretary, a
report that, for the period covered by the report--
(A) describes the activities of the Foundation and
the progress of the Foundation in furthering the
mission of the Foundation described in subsection
(c)(2);
(B) provides a specific accounting of the source
and use of all funds made available to the Foundation
to carry out the activities described in subparagraph
(A) to ensure transparency in the alignment of the
missions of the Department and the Commission; and
(C) includes a summary of each evaluation regarding
the decision to award a grant that is conducted under
the requirements of subsection (e)(2)(B).
(5) Evaluation by comptroller general.--Not later than 5
years after the date on which the Foundation is established,
and once every 5 years thereafter, the Comptroller General of
the United States shall submit to the Committee on Commerce,
Science, and Transportation of the Senate and the Committee on
Energy and Commerce of the House of Representatives--
(A) an evaluation of--
(i) the extent to which the Foundation is
achieving the mission of the Foundation; and
(ii) the operation of the Foundation; and
(B) any recommendations regarding how the
Foundation may be improved.
(6) Audits.--The Foundation shall--
(A) provide for annual audits of the condition of
the Foundation; and
(B) make the audits, and all other records,
documents, and papers of the Foundation, available to
the Secretary and the Comptroller General of the United
States for examination or audit.
(7) Integrity.--
(A) In general.--To ensure integrity in the
operations of the Foundation, the Board shall develop
and enforce procedures relating to standards of
conduct, financial disclosure statements, conflicts of
interest (including recusal and waiver rules), audits,
and any other matters determined appropriate by the
Board.
(B) Financial conflicts of interest.--An individual
who is an officer, employee, or member of the Board may
not participate in deliberations by the Foundation
regarding a matter that would directly or predictably
affect any financial interest of--
(i) the individual;
(ii) a relative (as defined in section 109
of the Ethics in Government Act of 1978 (5
U.S.C. App.)) of that individual; or
(iii) a business organization or other
entity in which the individual has an interest,
including an organization or other entity with
which the individual is negotiating employment.
(8) Intellectual property.--The Board shall adopt written
standards to govern the ownership and licensing of any
intellectual property rights--
(A) developed by the Foundation through activities
funded by a for-profit subsidiary established under
subsection (e)(6); or
(B) otherwise derived from the collaborative
efforts of the Foundation.
(9) Liability.--
(A) In general.--The United States shall not be
liable for any debt, default, act, or omission of--
(i) the Foundation; or
(ii) a Federal entity with respect to an
agreement of that Federal entity with the
Foundation.
(B) Full faith and credit.--The full faith and
credit of the United States shall not extend to any
obligations of the Foundation.
(10) Nonapplicability of faca.--The Federal Advisory
Committee Act (5 U.S.C. App.) shall not apply to the
Foundation.
(g) Community Advisory Committee and Report.--
(1) Composition.--
(A) In general.--Not later 90 days after the date
on which the Foundation is established, the Board shall
convene an advisory committee comprised of community
members from covered populations and experts with
experience providing essential products and service to
covered populations.
(B) Stakeholders represented.--To the extent
practicable, the Board shall ensure that members
appointed to the advisory committee under subparagraph
(A) represent diverse regions, sectors, and
communities, including not less than 1 member who is
affiliated with, or has experience working with, all of
the following:
(i) Digital inclusion practitioners.
(ii) Rural-focused programs.
(iii) Members of Indigenous communities.
(iv) Civil rights advocates.
(v) Consumer advocates.
(vi) Libraries.
(vii) School systems or education
technology specialists.
(viii) Accessibility advocates or experts.
(ix) Retired or older individuals.
(x) Private sector internet service
providers.
(xi) Other relevant groups with experience
addressing the access, adoption, and
affordability of broadband services.
(2) Annual report.--Not later than 2 years after the date
on which the Foundation is established, and annually
thereafter, the Board shall direct the community advisory
committee convened under paragraph (1) to submit to the Board a
written report that includes recommended changes, if any, to
the Foundation and any other matter the Board considers
appropriate.
(3) Reimbursement for certain expenses.--In accordance with
the bylaws of the Foundation, members of the community advisory
committee convened under paragraph (1) may be reimbursed for
travel expenses, including per diem in lieu of subsistence, and
other necessary expenses incurred in carrying out the functions
of that advisory committee.
(h) Support Services.--The Secretary shall provide facilities,
utilities, and support services to the Foundation if the Secretary
determines that the provision of those items is advantageous to the
programs of the Department.
(i) Anti-Deficiency Act.--Section 1341(a)(1) of title 31, United
States Code (commonly referred to as the ``Anti-Deficiency Act''),
shall not apply to any Federal officer or employee carrying out any
activity of the Foundation using funds of the Foundation.
(j) No Preemption of Authority.--This section shall not preempt any
authority or responsibility of the Secretary under any other provision
of law.
(k) Transfer Funds.--The Foundation may transfer funds to the
Department, which shall be subject to all applicable Federal
limitations relating to federally funded research.
(l) Authorization of Appropriations.--There are authorized to be
appropriated such sums as may be necessary--
(1) to the Secretary for fiscal year 2023 to establish the
Committee;
(2) to the Foundation for fiscal year 2024 to carry out the
activities of the Foundation; and
(3) to the Foundation for fiscal year 2025, and each fiscal
year thereafter, for administrative and operational costs.
<all>