article: 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.
summary: 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.