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[Congressional Bills 106th Congress]
[From the U.S. Government Publishing Office]
[S. 2229 Introduced in Senate (IS)]

106th CONGRESS
  2d Session
                                S. 2229

      To provide for digital empowerment, and for other purposes.

_______________________________________________________________________

                   IN THE SENATE OF THE UNITED STATES

                             March 9, 2000

 Ms. Milulski (for herself, Mr. Kennedy, Mr. Bingaman, Mr. Levin, Mr. 
   Sarbanes, Mrs. Murray, Mrs. Lincoln, Mrs. Boxer, Mr. Johnson, Mr. 
Kerry, Mr. Durbin, Mr. Hollings, Mr. Reid, Mr. Rockefeller, Mr. Breaux, 
Mr. Dorgan, Mr. Torricelli, Mr. Baucus, Mr. Dodd, Mr. Cleland, and Mrs. 
  Feinstein) introduced the following bill; which was read twice and 
                  referred to the Committee on Finance

_______________________________________________________________________

                                 A BILL

 
      To provide for digital empowerment, 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; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Digital 
Empowerment Act''.
    (b) Table of Contents.--The table of contents of this Act is as 
follows:

Sec. 1. Short title; table of contents.
Sec. 2. Purposes.
Sec. 3. Findings.
Sec. 4. Definitions.
            TITLE I--ONE-STOP SHOP FOR TECHNOLOGY EDUCATION

Sec. 101. One-stop shop for technology education.
Sec. 102. National repository of effective uses of educational 
                            technology.
                      TITLE II--DIGITAL EDUCATION

Sec. 201. National challenge grants for technology in education.
Sec. 202. Local uses of funds.
Sec. 203. Additional requirement for local applications.
Sec. 204. Teacher training.
          TITLE III--EXPANSION OF UNIVERSAL SERVICE ASSISTANCE

Sec. 301. Additional uses of universal service assistance by 
                            educational providers.
Sec. 302. Eligibility for universal service assistance of head start 
                            agencies and organizations that receive 
                            Federal job training funds.
                       TITLE IV--E-CORPS PROGRAMS

Sec. 401. E-corps.
                 TITLE V--COMMUNITY TECHNOLOGY CENTERS

Sec. 501. Community technology centers.
           TITLE VI--NEIGHBORHOOD NETWORKS FOR PUBLIC HOUSING

Sec. 601. Computer access for public housing residents.
            TITLE VII--INCENTIVES FOR TECHNOLOGY ASSISTANCE

Sec. 701. Enhanced deduction for corporate donations of computer 
                            technology.
     TITLE VIII--DEMONSTRATION PROJECT IN K-12 EDUCATION TECHNOLOGY

Sec. 801. Demonstration project.

SEC. 2. PURPOSES.

    The purposes of this Act are the following:
            (1) To enable every child in America to cross the digital 
        divide by ensuring that all children have access to technology 
        and technology education.
            (2) To ensure that every child is computer literate by the 
        time the child finishes 8th grade, regardless of the child's 
        race, ethnicity, gender, income, geography, or disability.

SEC. 3. FINDINGS.

    Congress makes the following findings:
            (1) A digital divide exists in America. Low-income, urban, 
        and rural families are less likely to have access to the 
        Internet and computers. Black and Hispanic families are only 
        \2/5\ as likely to have Internet access as white families.
            (2) The Digital divide for the poorest Americans has grown 
        by 29% since 1997.
            (3) Over 50 percent of schools lack the infrastructure 
        needed to support new technology.
            (4) While 51 percent of classrooms nationally are wired to 
        the Internet, only 39 percent of classrooms with high levels of 
        poverty are connected to the Internet.
            (5) Predominantly white schools are almost twice as likely 
        to be linked to the Internet than are schools that have 
        predominately minority children.
            (6) Approximately 4 out of 10 teachers have had no training 
        in using the Internet.
            (7) Hispanics and African-Americans rely less on home or 
        work sites and more on schools and libraries for Internet 
        access.
            (8) Regardless of income level, Americans living in rural 
        areas are lagging behind in Internet access. At the lowest 
        income levels, those in urban areas are more than twice as 
        likely to have Internet access than those in rural areas.
            (9) In the digital economy, access to technology is a 
        fundamental civil right.
            (10) To ensure that no child is left behind, all children 
        must have access to computers, the Internet, and teachers 
        trained in the use of computers and the Internet in their 
        schools, libraries, and communities.

SEC. 4. DEFINITIONS.

    The terms used in this Act have the meanings given the terms in 
section 14101 of the Elementary and Secondary Education Act of 1965 (20 
U.S.C. 8801).

            TITLE I--ONE-STOP SHOP FOR TECHNOLOGY EDUCATION

SEC. 101. ONE-STOP SHOP FOR TECHNOLOGY EDUCATION.

    Section 216 of the Department of Education Organization Act (as 
added by Public Law 103-227) (20 U.S.C. 3425) is amended--
            (1) in subsection (a)--
                    (A) by striking ``Director'' each place the term 
                appears and inserting ``Assistant Secretary''; and
                    (B) by adding at the end the following: ``The 
                Office shall be a one-stop shop for all technology 
                education programs within the Department, provide 
                schools and community groups with information with 
                respect to technology education programs and sources of 
                funds, and serve as a clearinghouse with respect to 
                information on public and private efforts to bring 
                technology to areas underserved by technology.'';
            (2) in subsection (b), by striking ``Director'' each place 
        the term appears and inserting ``Assistant Secretary'';
            (3) in subsection (c), by striking ``Director'' and 
        inserting ``Assistant Secretary''; and
            (4) by redesignating such section (as so amended) as 
        section 218 of such Act.

SEC. 102. NATIONAL REPOSITORY OF EFFECTIVE USES OF EDUCATIONAL 
              TECHNOLOGY.

    Section 3122(c) of the Elementary and Secondary Education Act of 
1965 (20 U.S.C. 6832(c)) is amended--
            (1) in paragraph (15), by striking ``and'' at the end;
            (2) by redesignating paragraph (16) as paragraph (17); and
            (3) by inserting after paragraph (15) the following:
            ``(16) the development of a national repository of 
        information on the effective uses of educational technology and 
        the dissemination of that information nationwide; and''.

                      TITLE II--DIGITAL EDUCATION

SEC. 201. NATIONAL CHALLENGE GRANTS FOR TECHNOLOGY IN EDUCATION.

    Section 3132 of the Elementary and Secondary Education Act of 1965 
(20 U.S.C. 6842) is amended--
            (1) in subsection (a)(2), by adding at the end the 
        following:
            ``(C) In awarding grants under subparagraph (A), each State 
        educational agency shall give priority to local educational 
        agencies that have--
                            ``(i) the highest numbers or percentages of 
                        children in poverty; and
                            ``(ii) a substantial need for assistance in 
                        acquiring and using technology.''; and
            (2) by adding at the end the following:
    ``(c) Authorization of Appropriations.--There are authorized to be 
appropriated to carry out this section $850,000,000 for fiscal year 
2001 and such sums as may be necessary for each of the 4 succeeding 
fiscal years.''.

SEC. 202. LOCAL USES OF FUNDS.

    Section 3134 of the Elementary and Secondary Education Act of 1965 
(20 U.S.C. 6844) is amended--
            (1) in paragraph (5), by striking ``and'' at the end;
            (2) in paragraph (6), by striking the period and inserting 
        a semicolon; and
            (3) by adding at the end the following:
            ``(7) providing intensive training in the use of technology 
        to school librarians and library media specialists; and
            ``(8) providing technical support and services to assist 
        schools in maintaining their educational technology.''.

SEC. 203. ADDITIONAL REQUIREMENT FOR LOCAL APPLICATIONS.

    Section 3135 of the Elementary and Secondary Education Act of 1965 
(20 U.S.C. 6845) is amended--
            (1) in paragraph (3), by striking ``and'' at the end;
            (2) in paragraph (4), by striking the period and inserting 
        ``; and''; and
            (3) by adding at the end the following:
            ``(5) describe how the local educational agency will ensure 
        that school libraries and media centers possess equipment and 
        trained personnel that enables them to provide access to 
        information in formats made possible by new information and 
        communication technologies.''.

SEC. 204. TEACHER TRAINING.

    (a) Teacher Technology Preparation Academies.--
            (1) Grants authorized.--The Secretary of Education is 
        authorized to award grants under subsection (b) to State 
        educational agencies to enable the State educational agencies 
        to establish Teacher Technology Preparation Academies within 
        the State that--
                    (A) provide teachers, librarians, and library media 
                specialists with training to acquire or upgrade 
                technology skills in order to use technology 
                effectively in the classroom;
                    (B) have training plans developed by a local 
                educational agency; and
                    (C) encourage teachers, librarians, and library 
                media specialists trained at the academies to return to 
                their schools and act as technology instructors for 
                other teachers, librarians, and library media 
                specialists.
            (2) Formula.--The Secretary of Education shall award grants 
        to State educational agencies under subsection (a) in the same 
        manner as the Secretary awards grants to State educational 
        agencies under sections 3131 and 3132 of the Elementary and 
        Secondary Education Act of 1965 (20 U.S.C. 6841, 6842).
            (3) Authorization of appropriations.--There are authorized 
        to be appropriated to carry out this subsection $250,000,000 
        for fiscal year 2001 and such sums as may be necessary for each 
        of the 4 succeeding fiscal years.
    (b) New Teacher Training.--
            (1) Grants authorized.--The Secretary of Education is 
        authorized to award grants, on a competitive basis, to 
        institutions of higher education to enable the institutions to 
        train students entering the teaching workforce to use 
        technology effectively in the classroom.
            (2) Authorization of appropriations.--There are authorized 
        to be appropriated to carry out this subsection $150,000,000 
        for fiscal year 2001 and such sums as may be necessary for each 
        of the 4 succeeding fiscal years.
    (c) Libraries.--
            (1) Grants authorized.--The Secretary of Education is 
        authorized to award grants to State educational agencies to 
        enable the State educational agencies to provide school library 
        technology and training for school librarians and library media 
        specialists.
            (2) Authorization of appropriations.--There are authorized 
        to be appropriated to carry out this subsection $250,000,000 
        for fiscal year 2001 and such sums as may be necessary for each 
        of the 4 succeeding fiscal years.

          TITLE III--EXPANSION OF UNIVERSAL SERVICE ASSISTANCE

SEC. 301. ADDITIONAL USES OF UNIVERSAL SERVICE ASSISTANCE BY 
              EDUCATIONAL PROVIDERS.

    (a) Structured After-School Activities.--Subparagraph (B) of 
section 254(h)(1) of the Communications Act of 1934 (47 U.S.C. 
254(h)(1)) is amended by inserting ``(including structured after-school 
activities)'' after ``for educational purposes''.
    (b) Maintenance and Repair of Technology.--Section 254(h)(1) of the 
Communications Act of 1934 (47 U.S.C. 254(h)(1)) is amended--
            (1) by designating the third sentence of subparagraph (B) 
        as subparagraph (E) and inserting at the beginning of such 
subparagraph (E) the following:
                    ``(E) Offset.--''; and
            (2) in subparagraph (B)--
                    (A) by striking ``(B) Educational providers and 
                libraries.--All telecommunications carriers'' and 
                inserting the following:
                    ``(B) Educational providers and libraries.--
                            ``(i) In general.--All telecommunications 
                        carriers'';
                    (B) by designating the second sentence as clause 
                (ii) and inserting at the beginning of such clause the 
                following:
                            ``(ii) Amount of discount.--''; and
                    (C) by adding after clause (ii), as designated by 
                subparagraph (B), the following:
                            ``(iii) Maintenance and repair of 
                        technology.--An elementary school or secondary 
                        school that receives funds under this 
                        subparagraph in lieu (whether in whole or in 
                        part) of discounts under this subparagraph may 
                        use such funds for purposes of the maintenance 
                        and repair of technology necessary for the 
                        utilization of services for which discounts are 
                        available under this subparagraph.''.

SEC. 302. ELIGIBILITY FOR UNIVERSAL SERVICE ASSISTANCE OF HEAD START 
              AGENCIES AND ORGANIZATIONS THAT RECEIVE FEDERAL JOB 
              TRAINING FUNDS.

    (a) Eligibility of Head Start Agencies.--Section 254(h)(1) of the 
Communications Act of 1934 (47 U.S.C. 254(h)(1)), as amended by section 
301 of this Act, is amended by inserting after subparagraph (B) the 
following:
                    ``(C) Head start agencies.--A Head Start agency 
                shall be provided services under this paragraph to the 
                same extent, and subject to the same conditions and 
                limitations, as elementary schools, secondary schools, 
                and libraries are provided services under subparagraph 
                (B).''.
    (b) Eligibility of Organizations Receiving Federal Job Training 
Funds.--Section 254(h)(1) of the Communications Act of 1934 (47 U.S.C. 
254(h)(1)) is amended by inserting after subparagraph (C), as inserted 
by subsection (a) of this section, the following:
                    ``(D) Organizations receiving federal job training 
                funds.--An organization that receives Federal funds to 
                provide job training services shall be provided 
                services under this paragraph the same extent, and 
                subject to the same conditions and limitations, as 
                elementary schools, secondary schools, and libraries 
                are provided services under subparagraph (B).''.
    (c) Head Start Agency Defined.--Section 254(h)(5) of the 
Communications Act of 1934 (47 U.S.C. 254(h)(1)) is amended by adding 
at the end the following:
                    ``(D) Head start agency.--The term `Head Start 
                agency' means an agency designated under section 641 of 
                the Head Start Act (42 U.S.C. 9836).''.
    (d) Conforming Amendments.--Section 254 of the Communications Act 
of 1934 (47 U.S.C. 254) is amended--
            (1) in subsection (b)(6)--
                    (A) in the paragraph heading by striking ``and 
                libraries'' and inserting ``libraries, head start 
                agencies, and certain other organizations''; and
                    (B) by striking ``and libraries'' and inserting 
                ``libraries, Head Start agencies, and organizations 
                that receive Federal job training funds'';
            (2) in subsection (c)(3), by striking ``and health care 
        providers'' and inserting ``health care providers, Head Start 
        agencies, and organizations that receive Federal job training 
        funds''; and
            (3) in subsection (h)(2)(A), by striking ``and libraries'' 
        and inserting ``libraries, Head Start agencies, and 
        organizations that receive Federal job training funds''.

                       TITLE IV--E-CORPS PROGRAMS

SEC. 401. E-CORPS.

    (a) Programs.--Section 122(a) of the National and Community Service 
Act of 1990 (42 U.S.C. 12572(a)) is amended--
            (1) by redesignating paragraph (15) as paragraph (16); and
            (2) by inserting after paragraph (14) the following new 
        paragraph:
            ``(15) An E-Corps program that involves participants who 
        are proficient in technology and who provide service in a 
        community by developing and assisting in carrying out 
        technology programs in elementary schools, secondary schools, 
        and community centers.''.
    (b) Rules.--Section 122 of the National and Community Service Act 
of 1990 (42 U.S.C. 12572) is amended by adding at the end the 
following:
    ``(d) Implementation.--In carrying out this title, and in 
particular in establishing priorities as described in subsection (c), 
in distributing funding as described in section 129, and in applying 
the criteria, considerations, and rules of emphasis described in 
subsections (c) through (e) of section 133, the Corporation shall 
ensure that none of the funds described in section 501(a)(2)(B) is used 
for a purpose other than carrying out programs described in subsection 
(a)(15).''.
    (c) Authorization of Appropriations.--Section 501(a)(2)(B) of the 
National and Community Service Act of 1990 (42 U.S.C. 12681(a)(2)(B)) 
is amended--
            (1) by striking ``fiscal year, up to 15'' and inserting the 
        following: ``fiscal year--
                            ``(i) up to 15'';
            (2) by striking the period and inserting ``; and''; and
            (3) by adding at the end the following:
                            ``(ii) $25,000,000 shall be made available 
                        to carry out programs described in section 
                        122(a)(15) and provide national service 
                        educational awards under subtitle D of title I 
to participants in such programs.''.

                 TITLE V--COMMUNITY TECHNOLOGY CENTERS

SEC. 501. COMMUNITY TECHNOLOGY CENTERS.

    Part A of title III of Elementary and Secondary Education Act of 
1965 (20 U.S.C. 6811-6871) is amended by adding at the end the 
following:

               ``Subpart 5--Community Technology Centers

``SEC. 3161. ``PURPOSE; PROGRAM AUTHORITY.

    ``(a) Purpose.--The purpose of this subpart is to assist eligible 
applicants to--
            ``(1) create or expand community technology centers that 
        will provide disadvantaged residents of economically distressed 
        urban and rural communities with access to information 
        technology and related training; and
            ``(2) provide technical assistance and support to community 
        technology centers.
    ``(b) Program Authority.--
            ``(1) In general.--The Secretary is authorized, through the 
        Office of Educational Technology, to award grants, contracts, 
        or cooperative agreements on a competitive basis to eligible 
        applicants in order to assist them in--
                    ``(A) creating or expanding community technology 
                centers; or
                    ``(B) providing technical assistance and support to 
                community technology centers.
            ``(2) Period of award.--The Secretary may award grants, 
        contracts, or cooperative agreements under this subpart for a 
        period of not more than 3 years.

``SEC. 3162. ELIGIBILITY AND APPLICATION REQUIREMENTS.

    ``(a) Eligible Applicants.--In order to be eligible to receive an 
award under this subpart, an applicant shall--
            ``(1) have the capacity to expand significantly access to 
        computers and related services for disadvantaged residents of 
        economically distressed urban and rural communities (who would 
        otherwise be denied such access); and
            ``(2) be--
                    ``(A) an entity such as a foundation, museum, 
                library, for-profit business, public or private 
                nonprofit organization, or community-based 
                organization;
                    ``(B) an institution of higher education;
                    ``(C) a State educational agency;
                    ``(D) a local education agency; or
                    ``(E) a consortium of entities described in 
                subparagraph (A), (B), (C), or (D).
    ``(b) Application Requirements.--In order to receive an award under 
this subpart, an eligible applicant shall submit an application to the 
Secretary at such time, and containing such information, as the 
Secretary may require. Such application shall include--
            ``(1) a description of the proposed project, including a 
        description of the magnitude of the need for the services and 
        how the project would expand access to information technology 
        and related services to disadvantaged residents of an 
        economically distressed urban or rural community;
            ``(2) a demonstration of--
                    ``(A) the commitment, including the financial 
                commitment, of entities such as institutions, 
                organizations, businesses, and other groups in the 
                community that will provide support for the creation, 
                expansion, and continuation of the proposed project; 
                and
                    ``(B) the extent to which the proposed project 
                establishes linkages with other appropriate agencies, 
                efforts, and organizations providing services to 
                disadvantaged residents of an economically distressed 
                urban or rural community;
            ``(3) a description of how the proposed project would be 
        sustained once the Federal funds awarded under this subpart are 
        expended; and
            ``(4) a plan for the evaluation of the program, which shall 
        include benchmarks to monitor progress toward specific project 
        objectives.
    ``(c) Matching Requirements.--The Federal share of the cost of any 
project funded under this subpart shall not exceed 50 percent. The non-
Federal share of such project may be in cash or in kind, fairly 
evaluated, including services.

``SEC. 3163. USES OF FUNDS.

    ``(a) Required Uses.--A recipient shall use funds awarded under 
this subpart for--
            ``(1) creating or expanding community technology centers 
        that expand access to information technology and related 
        training for disadvantaged residents of distressed urban or 
        rural communities; and
            ``(2) evaluating the effectiveness of the project.
    ``(b) Permissible Uses.--A recipient may use funds awarded under 
this subpart for activities described in its application that carry out 
the purposes of this subpart, such as--
            ``(1) supporting a center coordinator, and staff, to 
        supervise instruction and build community partnerships;
            ``(2) acquiring equipment, networking capabilities, and 
        infrastructure to carry out the project;
            ``(3) developing and providing services and activities for 
        community residents that provide access to computers, 
        information technology, and the use of such technology in 
        support of preschool preparation, academic achievement, 
        lifelong learning, and workforce development, such as--
                    ``(A) after-school activities in which children and 
                youths use software that provides academic enrichment 
                and assistance with homework, develops their technical 
                skills, and allows them to explore the Internet and 
                participate in multimedia activities, including webpage 
                design and creation;
                    ``(B) adult education and family literacy 
                activities through technology and the Internet, 
                including--
                            ``(i) General Education Development, 
                        English as a Second Language, and adult basic 
                        education classes or programs;
                            ``(ii) introduction to computers;
                            ``(iii) intergenerational activities; and
                            ``(iv) lifelong learning opportunities;
                    ``(C) career development and job preparation 
                activities, such as--
                            ``(i) training in basic and advanced 
                        computer skills;
                            ``(ii) resume writing workshops; and
                            ``(iii) access to databases of employment 
                        opportunities, career information, and other 
                        online materials.
                    ``(D) small business activities, such as--
                            ``(i) computer-based training for basic 
                        entrepreneurial skills and electronic commerce; 
                        and
                            ``(ii) access to information on business 
                        startup programs that is available online, or 
                        from other sources;
                    ``(E) activities that provide home access to 
                computers and technology, such as assistance and 
                services to promote the acquisition, installation, and 
                use of information technology in the home through low-
                cost solutions such as networked computers, web-based 
                television devices, and other technology.

``SEC. 3164. AUTHORIZATION OF APPROPRIATIONS.

    ``There is authorized to be appropriated to carry out this subpart, 
$100,000,000 for fiscal year 2001 and such sums as may be necessary for 
each of the 4 succeeding fiscal years.''.

           TITLE VI--NEIGHBORHOOD NETWORKS FOR PUBLIC HOUSING

SEC. 601. COMPUTER ACCESS FOR PUBLIC HOUSING RESIDENTS.

    (a) Use of Public Housing Capital and Operating Funds.--Section 9 
of the United States Housing Act of 1937 (42 U.S.C. 1437g) is amended--
            (1) in subsection (d)(1)(E), by inserting before the 
        semicolon the following: ``, including the establishment and 
        initial operation of computer centers in and around public 
        housing through a Neighborhood Networks initiative, for the 
        purpose of enhancing the self-sufficiency, employability, and 
        economic self-reliance of public housing residents by providing 
        them with onsite computer access and training resources'';
            (2) in subsection (e)(1)--
                    (A) in subparagraph (I), by striking the ``and'' at 
                the end;
                    (B) in subparagraph (J), by striking the period and 
                inserting''; and''; and
                    (C) by adding after subparagraph (J) the following:
                    ``(K) the costs of operating computer centers in 
                public housing through a Neighborhood Networks 
                initiative described in subsection (d)(1)(E), and of 
                activities related to that initiative.''; and
            (3) in subsection (h)--
                    (A) in paragraph (6), by striking the ``and'' at 
                the end;
                    (B) in paragraph (7), by striking the period and 
                inserting ``; and''; and
                    (C) by inserting after paragraph (7) the following:
            ``(8) assistance in connection with the establishment and 
        operation of computer centers in public housing through a 
        Neighborhood Networks initiative described in subsection 
        (d)(1)(E).''.
    (b) Demolition, Site Revitalization, Replacement Housing, and 
Tenant-Based Assistance Grants for Projects.--Section 24 of the United 
States Housing Act of 1937 (42 U.S.C. 1437v) is amended--
            (1) in subsection (d)(1)(G), by inserting before the 
        semicolon the following: ``, including a Neighborhood Networks 
        initiative for the establishment and operation of computer 
        centers in public housing for the purpose of enhancing the 
        self-sufficiency, employability, and economic self-reliance of 
        public housing residents by providing them with onsite computer 
        access and training resources''; and
            (2) in subsection (m)(2), in the first sentence, by 
        inserting before the period the following: ``, including 
        assistance in connection with the establishment and operation 
        of computer centers in public housing through the Neighborhoods 
        Networks initiative described in subsection (d)(1)(G)''.

            TITLE VII--INCENTIVES FOR TECHNOLOGY ASSISTANCE

SEC. 701. ENHANCED DEDUCTION FOR CORPORATE DONATIONS OF COMPUTER 
              TECHNOLOGY.

    (a) Expansion of Computer Technology Donations to Head Start 
Centers, Structured After-School Programs, and Certain Public Libraries 
and Community Centers.--
            (1) In general.--Paragraph (6) of section 170(e) of the 
        Internal Revenue Code of 1986 (relating to special rule for 
        contributions of computer technology and equipment for 
        elementary or secondary school purposes) is amended by striking 
        ``qualified elementary or secondary educational contribution'' 
        each place it occurs in the headings and text and inserting 
        ``qualified computer contribution''.
            (2) Expansion of eligible donees.--Subclause (II) of 
        section 170(e)(6)(B)(i) of such Code (relating to qualified 
        elementary or secondary educational contribution) is amended by 
        striking ``or'' at the end of subclause (I) and by inserting 
        after subclause (II) the following new subclauses:
                                    ``(III) a Head Start agency 
                                designated under section 641 of the 
                                Head Start Act (42 U.S.C. 9836),
                                    ``(IV) a structured after-school 
                                program,
                                    ``(V) a public library (within the 
                                meaning of section 213(2)(A) of the 
                                Library Services and Technology Act (20 
                                U.S.C. 9122(2)(A)), as in effect on the 
                                date of the enactment of the New 
                                Millennium Classrooms Act, established 
                                and maintained by an entity described 
                                in subsection (c)(1) and located in an 
                                empowerment zone or enterprise 
                                community designated under part I of 
                                subchapter U or a population census 
                                tract within which the poverty rate is 
                                not less than 20 percent (as determined 
                                under part I of subchapter U), or
                                    ``(VI) a community center located 
                                in such a zone, community, or census 
                                tract,''.
    (b) Donations of Computer Training and Maintenance Allowed.--
Subparagraph (B) of section 170(e)(6) of the Internal Revenue Code of 
1986 is amended by inserting ``(including training or maintenance 
services with respect to such technology or equipment)'' after 
``computer technology or equipment''.
    (c) Conforming Amendments.--
            (1) Section 170(e)(6)((B)(iv) of the Internal Revenue Code 
        of 1986 is amended by striking ``in any grades K-12''.
            (2) The heading of paragraph (6) of section 170(e) of such 
        Code is amended by striking ``elementary or secondary school 
        purposes'' and inserting ``educational purposes''.
    (d) Extension of Deduction.--Section 170(e)(6)(F) of the Internal 
Revenue Code of 1986 (relating to termination) is amended by striking 
``during any taxable year beginning after December 31, 2000'' and 
inserting ``after June 30, 2004''.
    (e) Effective Date.--The amendments made by this section shall 
apply to contributions made after December 31, 2000.

     TITLE VIII--DEMONSTRATION PROJECT IN K-12 EDUCATION TECHNOLOGY

SEC. 801. DEMONSTRATION PROJECT.

    (a) Requirement To Undertake Project.--
            (1) In general.--The Secretary of Education (referred to in 
        this section as the ``Secretary'') shall conduct a 
        demonstration project that--
                    (A) delivers a highly flexible educational system 
                designed for kindergarten through grade 12, or a 
                component thereof, that includes hardware, software, 
                training and ongoing support and professional 
                development;
                    (B) implements an Internet-based, one-to-one pilot 
                project that specifically targets the educational needs 
                of students in grade 3 through grade 12 who reside in 
                low-income school districts; and
                    (C) is conducted by an organization with proven 
                expertise in the research and development of education 
                technology designed for kindergarten through grade 12.
            (2) Requirements.--The demonstration project shall provide 
        for the following:
                    (A) A rugged notebook computer for every student 
                participating in the project.
                    (B) An infrared wireless connection to the school's 
                local area network.
                    (C) A low-cost, high-speed Internet connection.
                    (D) Customized, professional development for 
                technical and instructional staff.
                    (E) An academic information system that provides 
                alignment between curricula, state standards, 
                assessment, and teacher resources.
                    (F) A parental training component.
            (3) Use of existing programs.--The Secretary may contract 
        with a private company or organization to carry out a 
        demonstration under this section.
            (4) Coordination with local educational agencies.--Where 
        practicable, the Secretary shall coordinate project 
        implementation and oversight with a local educational agency 
        and a private company, if such a company is used in the 
        project.
            (5) Preference for location.--To maximize results, but only 
        to the extent practicable, the demonstration project should be 
        conducted in a location where a similar program is already at 
        least partially underway.
            (6) Report.--
                    (A) In general.--Not later than 2 years after the 
                date of the enactment of this Act, the Secretary shall 
                submit a report to the Committee on Education and the 
                Workforce of the House of Representatives that 
                describes the results of the pilot project, the 
                feasibility and costs of implementing the pilot project 
                in the entire public school system, and recommendations 
                for the further deployment of similar educational 
                technology.
                    (B) Requirements.--The report shall include a 
                description of--
                            (i) any agreement entered into by the 
                        Secretary with other Federal agencies, local 
                        educational agencies, or private organizations 
                        to complete the project;
                            (ii) the number and location of similar 
                        programs;
                            (iii) data on student improvement in 
                        meeting state standards and assessment exams; 
                        and
                            (iv) the number, if any, of lost or stolen 
                        laptops during the pilot project, and causes 
                        thereof, as reported by the local educational 
                        agency.
    (b) Authorization of Appropriations.--There are authorized to be 
appropriated to the Secretary not more than $20,000,000 for fiscal year 
2001 to carry out the demonstration project required under this 
section.
                                 <all>
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