text: SECTION 1. SHORT TITLE.
  
      This Act may be cited as the ``E-Rate 2.0 Act of 2010''.
  
  SEC. 2. E-RATE 2.0 PROGRAM FOR INCREASED ADOPTION.
  
      Section 254(h) of the Communications Act of 1934 (47 U.S.C. 254(h)) 
  is amended--
              (1) by redesignating paragraph (7) as paragraph (10); and
              (2) by adding after paragraph (6) the following:
              ``(7) Digital divide mitigation.--
                      ``(A) In general.--The Commission shall implement a 
                  pilot program to extend broadband service to students 
                  who--
                              ``(i) qualify for funding under the 
                          federally subsidized school lunch program;
                              ``(ii) attend secondary schools that 
                          receive support under this section; and
                              ``(iii) who possess a computer for use at 
                          home.
                      ``(B) Use of funds.--The pilot program shall 
                  distribute funding to such secondary schools to 
                  dispense vouchers to eligible students to be used for 
                  monthly service fees for residential broadband service 
                  for such students.
                      ``(C) Rules.--The Commission shall promulgate rules 
                  to implement the pilot program, including rules to 
                  prevent vouchers from being sold or transferred to non-
                  qualifying individuals.
                      ``(D) Limitations.--
                              ``(i) Duration.--The pilot program shall be 
                          in effect for a period of 5 years after the 
                          effective date of the regulations promulgated 
                          under subparagraph (C).
                              ``(ii) Maximum amount.--There is authorized 
                          to be appropriated to the Commission to 
                          implement the pilot program not more than 
                          $500,000,000 per year for the period described 
                          in clause (i).''.
  
  SEC. 3. ELIGIBILITY FOR DISCOUNTED RATES FOR COMMUNITY COLLEGES AND 
                HEAD START PROGRAMS.
  
      (a) In General.--Section 254(h) of such Act (47 U.S.C. 254(h)) is 
  further amended--
              (1) in paragraph (2)(A), by striking ``classrooms,'' and 
          inserting ``classrooms, community colleges, head start 
          programs''; and
              (2) in paragraph (10) (as redesignated under section 
          2(1))--
                      (A) in subparagraph (C), by striking ``school,'' 
                  and inserting ``school, a community college, a head 
                  start program''; and
                      (B) by adding at the end the following:
                      ``(J) Community college.--The term `community 
                  college' has the meaning given the term `junior or 
                  community college' in section 312 of the Higher 
                  Education Act of 1965 (20 U.S.C. 1058).
                      ``(K) Head start program.--The term `head start 
                  program' means any local public or private nonprofit 
                  agency that is designated by the Secretary of Health 
                  and Human Services as a Head Start agency under section 
                  641 of the Head Start Act (42 U.S.C. 9836).''.
      (b) Pilot Project.--Section 254(h) of such Act (47 U.S.C. 254(h)) 
  is further amended by inserting after paragraph (7), as added by 
  section 2, the following:
              ``(8) Community colleges and head start programs pilot 
          project.--
                      ``(A) In general.--The Commission shall implement a 
                  pilot project, not to exceed $150,000,000 in any one 
                  year, to extend funding for broadband equipment and 
                  services under this section to those community college 
                  or head start program applicants who best demonstrate 
                  need, maximization potential of broadband use 
                  consistent with their educational mission, and 
                  innovation with respect to use of broadband, web-based 
                  information and applications.
                      ``(B) Rulemaking required.--The Commission shall 
                  adopt rules as necessary to implement this paragraph.
                      ``(C) Specification.--For the first 5 years after 
                  the date of enactment of the E-Rate 2.0 Act of 2010, 
                  community colleges and head start programs shall 
                  receive funding for broadband equipment and services 
                  from the Federal government exclusively through this 
                  pilot project.''.
  
  SEC. 4. ELECTRONIC BOOKS PILOT PROJECT.
  
      Section 254(h) of the Communications Act of 1934 (47 U.S.C. 254(h)) 
  is further amended by inserting after paragraph (8), as added by 
  section 3, the following:
              ``(9) E-books for e-rate.--
                      ``(A) In general.--The Commission shall implement a 
                  pilot project, not to exceed $50,000,000 in any one 
                  year, to extend to those secondary school applicants 
                  for funding under this section that are eligible for 
                  the highest percentage discounted rates under the 
                  Commission's regulations implementing this section an 
                  opportunity to apply for meaningfully discounted 
                  services and technologies for the use of electronic 
                  books.
                      ``(B) Rulemaking required.--The Commission shall 
                  adopt such rules as may be necessary to implement this 
                  paragraph, including rules assuring that such 
                  technologies and services are incorporated into the 
                  course curricula of the applying secondary school and 
                  that implementation is on a technology-neutral basis.
                      ``(C) Duration; report.--
                              ``(i) In general.--The pilot project shall 
                          last 4 years in duration.
                              ``(ii) Report.--At the end of the third 
                          year of the operation of the pilot project, the 
                          Commission shall prepare and submit to Congress 
                          a report assessing the project. The report 
                          shall include metrics to gauge the impact on 
                          digital literacy and overall learning 
                          associated with the student use of the 
                          electronic books project.
                      ``(D) Rulemaking required.--The Commission shall 
                  commence and complete a rulemaking in the final year of 
                  the pilot project and determine whether the program 
                  should be extended or terminated, and if extended, what 
                  additional entities should be eligible for funding, 
                  what level of funding is reasonable and affordable for 
                  such program, and what other modifications to the 
                  program are warranted consistent with the public 
                  interest.''.
  
  SEC. 5. IMPROVED ADMINISTRATION OF E-RATE APPLICATION PROCESS.
  
      (a) In General.--Not later than 6 months after the date of 
  enactment of this Act, the Federal Communications Commission shall 
  develop and implement policies and procedures to streamline and 
  simplify the application process under section 254(h) of the 
  Communications Act of 1934 (commonly known as the ``E-Rate program'') 
  for the purpose of--
              (1) improving administration of the program;
              (2) increasing access to the benefits of the program;
              (3) minimizing the burden on applicants; and
              (4) maintaining measures to eliminate waste, fraud, and 
          abuse.
      (b) Specific Modifications.--In carrying out subsection (a), the 
  Federal Communications Commission shall consider whether the mission 
  and goals of the E-Rate program would be better served by the following 
  modifications to the administration of the program:
              (1) The establishment of a multi-year application for 
          Priority One services such that applicants would be required to 
          submit funding requests only once every 3 years for recurring 
          services (such as telephone and Internet access services).
              (2) The use of an interactive Web site for communicating 
          with applicants.
              (3) The deployment of interactive technology tools, such as 
          online application forms, as part of the application process to 
          reduce the use of paper-based means of communication and to 
          improve the ability of applicants to receive clear and current 
          information regarding their applications and the E-Rate 
          program.
  
  SEC. 6. E-RATE FUND CAP MODIFICATION.
  
      (a) In General.--Not later than 6 months after the date of 
  enactment of this Act, the Federal Communications Commission shall 
  complete a proceeding to revise the amount of the cap provided for in 
  section 54.507(a) of title 47, Code of Federal Regulations, to account 
  for inflation.
      (b) Report to Congress.--Not later than 30 days after completing 
  the proceeding required by subsection (a), the Federal Communications 
  Commission shall submit a report to Congress explaining what 
  methodology the Commission will use to determine the appropriate 
  adjustment under such subsection.
target: E-Rate 2.0 Act of 2010 - Amends the Communications Act of 1934 to direct the Federal Communications Commission (FCC) to implement a five-year pilot program which distributes funding to secondary schools participating in the E-Rate program (which provides discounted telecommunications services to certain schools and libraries) so that they can provide residential broadband service vouchers to students who are eligible to participate in the school lunch program and have a computer at home.
  
  Includes community colleges and Head Start agencies in the E-Rate program. Directs the FCC to implement a pilot program that, for the five years following this Act's enactment, is the exclusive source of federal funding for broadband equipment and services for community colleges and Head Start agencies.
  
  Requires the FCC to implement a four-year pilot program that allows secondary schools that are eligible for the highest percentage discounted rates under the E-Rate program to apply for meaningfully discounted services and technologies for the use of electronic books.
  
  Directs the FCC to: (1) develop and implement policies and procedures to streamline and simplify the E-Rate program application process; and (2) complete the proceeding to revise the E-Rate program funding cap so that the cap accounts for inflation.
feat_title: To amend the Communications Act of 1934 to create a pilot program to bridge the digital divide by providing vouchers for broadband service to eligible students, to increase access to advanced telecommunications and information services for community colleges and head start programs, to establish a pilot program for discounted electronic books, and for other purposes.