Sec. 102. Elementary and Secondary Education Programs.
Sec. 103. Higher Education Partnership Programs.
Sec. 104. Library and Literacy Programs.
Sec. 105. State Educational Technology Plan.
Sec. 106. Local Educational Technology Plan.
Sec. 107. Federal Administration.
TITLE II—EDUCATIONAL TECHNOLOGY GOVERNANCE
Sec. 201. Educational Technology Council.
Sec. 202. Educational Technology Authority.
TITLE III—REGIONAL SUPPORT, RESEARCH AND DEVELOPMENT
Sec. 301. Regional Educational Technology Assistance Consortia.
Sec. 302. Educational Technology Research and Development Grants.
TITLE IV—AUTHORIZATION OF APPROPRIATIONS
Sec. 401. Authorization of Appropriations.
Sec. 402. Allocation of Funds.
SEC. 2. FINDINGS.
The Congress finds that—
(1) the use of technology as a tool in the learn-
ing process is essential to the development and
maintenance of a technologically literate citizenry
and an internationally competitive work force;
(2) the acquisition and use of technology in
education throughout the United States has been in-
hibited by the absence of Federal leadership, the in-
ability of many State and local educational agencies
to invest in and support needed technologies, and
the limited availability of appropriate technology-en-
hanced curriculum, instruction, teacher training, and
administrative support resources and services in the
educational marketplace;
(3) educational equalization concerns and school
restructuring needs can be addressed through edu-
cational telecommunications and technology by offer-
ing universal access to high-quality teaching and
programs, particularly in urban and rural areas;
(4) in the absence of appropriate educational
technology policies, the disparity between rich and
poor students will become even greater in a world
where technology and telecommunications increas-
ingly have become an integral part of many house-
holds;
(5) the increasing use of new technologies and
telecommunications systems in business and industry
has furthered the gap between schooling and work
force preparation;
(6) telecommunications can be a conduit for on-
going teacher training and improved professional de-
velopment by providing to teachers constant access
to updated research in teaching and learning;
(7) research consistently shows that the
planned use of technology combined with teachers
who are adequately trained in its use can increase
opportunities for more students to develop higher
order thinking and technical skills than is possible
with traditional instruction;
(8) technology can—
(A) engage students in learning through
media with which they are comfortable;
(B) prove to be an effective learning tool,
particularly when correlated with State and na-
tional curriculum standards; and
(C) produce benefits to students that far
outweigh its costs;
(9) schools need new ways of financing the ac-
quisition and maintenance of educational technology;
and
(10) the needs for educational technology differ
from State to State.
SEC. 3. STATEMENT OF PURPOSE.
The purpose of this Act is—
(1) IN GENERAL.—to support a comprehensive
system for the acquisition and use by elementary
and secondary schools in the United States of tech-
nology and technology-enhanced curricula, instruc-
tion, and administrative support resources and serv-
ices, such system shall include—
(A) national leadership with respect to the
need for, and the provision of, appropriate tech-
nology-enhanced curriculum, instruction and
administrative programs to improve student
learning in the United States;
(B) funding mechanisms which will sup-
port the development, interconnection, imple-
mentation, improvement and maintenance of an
effective educational technology infrastructure;
(C) information dissemination networks to
facilitate access to information on effective
learning programs, assessment and evaluation
of such programs, research findings, and sup-
porting 
resources 
(including 
instructionally
based, technology-enhanced programs, research
and resources) by educators throughout the
United States;
(D) an extensive variety of opportunities
for teacher, inservice training, and administra-
tive training and technical assistance with re-
spect to effective uses of technologies in edu-
cation;
(E) consortia for the development, produc-
tion, distribution, and adaptation of technology
and technology-enhanced curricula, instruction
and administrative support resources and serv-
ices with Federal assistance;
(F) utilizing and strengthening, not dupli-
cating, existing telecommunications infrastruc-
tures dedicated to educational purposes;
(G) development and evaluation of new
and emerging educational technologies and tele-
communications networks; and
(H) assessment data regarding state-of-
the-art uses of technologies in United States
education upon which businesses, noncommer-
cial telecommunications entities, and govern-
ments can rely on for decisionmaking about the
need for, and provision of, appropriate tech-
nologies for education in the United States.
(2) SPECIFICALLY TO.—
(A) authorize grants to States that —
(i) improve the academic performance
of students through technology;
(ii) strengthen the skills of teachers in
effectively utilizing technology for student
learning;
(iii) promote the planned application
of technology in education by those who
will use the technology; and
(iv) encourage collaborative relation-
ships between the State agency for higher
education, the State library administrative
agency and the State agency for education
in the area of technology support to
strengthen elementary and secondary edu-
cation;
(B) establish within the Department of
Education, a Council with primary responsibil-
ity for—
(i) guiding Federal education policy,
including as appropriate national guide-
lines for the introduction, use, and upgrad-
ing of technology in schools;
(ii) developing policy that will leverage
the knowledge and resources of libraries
and of institutions of higher education for
the purposes of improving education for
students at the local level through the use
of technology;
(iii) representing the Department of
Education with other agencies and depart-
ments of the Federal government on issues
related to technology;
(iv) reducing barriers which may im-
pede the use of technology in schools and
other appropriate learning environments,
for learning, technical assistance, and in-
formation exchange between schools, li-
braries, museums, and other knowledge
and information providers in different lo-
calities and States; and
(v) reviewing State plans for edu-
cational technology to assure that they ad-
dress State needs while supporting na-
tional educational goals;
(C) establish the Educational Technology
Authority, a non-profit corporation to—
(i) work with States and others to de-
velop a variety of funding mechanisms for
education technology that will enable
schools to acquire educational technology;
and
(ii) assure the technical and fiscal fea-
sibility of State plans supported under the
provisions of this Act;
(D) establish Regional Educational Tech-
nology Assistance Consortia to—
(i) support technology planning and
implementation for States, schools, dis-
tricts, regional agencies, and institutions of
higher education;
(ii) promote interstate coordination of
technology planning and implementation;
(iii) assist technology initiatives to
support the national educational goals and
reform strategies; and
(iv) provide for professional develop-
ment related to educational technology
products that will serve the needs and be
accessed by educators for programs in local
schools throughout all regions of the Unit-
ed States;
(E) conduct research to identify and vali-
date effective applications of current and
emerging technologies to support student learn-
ing; and
(F) ensure that students and educators in
rural, suburban and urban communities and
students with special educational needs and di-
verse ethnic backgrounds have equal access to
the resources provided under this Act by—
(i) assuring that all resources under
this Act are equitably accessed by all pub-
lic schools throughout the United States;
(ii) assuring that all technologies
under this Act are made available in a va-
riety of formats responding to the needs of
students with disabilities;
(iii) assessing the extent to which
such equitable access is delivered; and
(iv) assuring that all projects and pro-
grams under this Act provide for the edu-
cational needs of all students regardless of
ethnicity, special education needs, primary
language, socioeconomic status, or geo-
graphical proximity to the resources.
SEC. 4. DEFINITIONS.
(a) IN GENERAL.—The terms used in this Act, unless
otherwise specified, shall have the same meaning given to
such terms by section 1471 of the Elementary and
Secondary Act of 1965.
(b) ADDITIONAL DEFINITIONS.—For the purpose of
this Act—
(1) the terms ‘‘institution of higher education’’
and ‘‘State agency for higher education’’ shall have
the same meaning given to such terms in section
1201(a) and 1201(h) of the Higher Education Act
of 1965;
(2) the terms ‘‘library’’ and ‘‘State library ad-
ministrative agency’’ shall have the same meaning
given to such terms in section 3 of the Library Serv-
ices and Construction Act (Public Law 84–579);
(3) the term ‘‘Deputy Secretary’’ means the
Deputy Secretary of Education;
(4) the term ‘‘Council’’ means the Council for
Educational Technology;
(5) the term ‘‘Authority’’ means the Edu-
cational Technology Authority;
(6) the term ‘‘Fund’’ means the Fund for Edu-
cational Technology;
(7) the term ‘‘Regional Education Laboratory’’
shall have the same meaning given to such term in
sec. 405 of the Department of Education Organiza-
tion Act, (Public Law 96–88);
(8) the term ‘‘Consortia’’ means the Regional
Educational Technology Assistance Consortia;
(9) the term ‘‘technology’’ includes closed cir-
cuit television systems, public telecommunications
entities, cable television, satellite, copper and fiber
optic transmission, computer, video and audio laser
and CD ROM disc, video and audio tapes or other
technologies;
(10) the term ‘‘Assistant Secretary’’ means the
Assistant Secretary for the Office of Educational
Research and Improvement;
(11) the term ‘‘credit enhancement’’ means a fi-
nancial arrangement that enhances the credit quality
of the issuer or the financial instrument being used;
(12) the term ‘‘interoperability’’ means the abil-
ity to communicate with operating systems developed
nationally and internationally using multiple network
media;
(13) the term ‘‘disabilities’’ means functional
limitations of hearing, vision, movement, manipula-
tion, speech, and interpretation of information;
(14) the term ‘‘school’’ includes a day or resi-
dential school which provides special education, as
determined under State and Federal law; and
(15) the term ‘‘student’’ means students from
a broad range of backgrounds and circumstances, in-
cluding disadvantaged students, students with di-
verse racial, ethnic, and cultural backgrounds, Amer-
ican Indians, Alaska Natives, Native Hawaiians, stu-
dents with disabilities, students with limited English
proficiency, and academically talented students.
TITLE I—STATE AND LOCAL
EDUCATIONAL AGENCY GRANTS
SEC. 101. IN-STATE APPORTIONMENT.
(a) AUTHORIZATIONS.—The Secretary is authorized
to make grants to States in accordance with the provisions
of this title to strengthen the skills of teachers and im-
prove student learning through the use of technology.
(b) ELEMENTARY AND SECONDARY EDUCATION PRO-
GRAMS.—(1) For each fiscal year, an amount equal to 70
percent of each State’s allotment under section 402(a)(2)
shall be used for elementary and secondary education pro-
grams by the state education agency in accordance with
section 102.
(2) Not less than 90 percent of a State’s allotment
under this subsection shall be available to local educational
agencies through competitive application—
(A) not less than 20 percent of the funds avail-
able for a project shall be used for professional de-
velopment during the first two years and not less
than 10 percent in succeeding years;
(B) not less than 7 percent of the funds avail-
able for a project shall be used for local planning
and evaluation activities; and
(C) not more than 5 percent of the funds avail-
able to the local education agency for any fiscal year
may be used for local administration.
(3) Not more than 10 percent of the amount allocated
under subsection (a) may be used by the State education
agency of which—
(A) not less than $100,000 shall be used for
technical assistance to local education agencies; and
(B) not less than $20,000 shall be used for pro-
gram evaluations.
(c) HIGHER EDUCATION PROGRAMS.—(1) For each
fiscal year 20 percent of each State’s allotment under sec-
tion 402(a) shall be used by the State higher education
agency designated in the State plan for partnership pro-
grams between local education agencies and higher edu-
cation institutions in accordance with section 103.
(2) Not less than 90 percent of the amount available
for this subsection shall be used by the State for grants
to institutions of higher education for partnership pro-
grams in accordance with the provisions of section 103.
(3) 5 percent of the amount allocated to the State’s
higher education partnership program under this section,
or $20,000, whichever is greater, shall be used for the
costs incurred for the evaluation of programs assisted
under section 103.
(4) Not more than 5 percent of the amount allocated
to the State’s higher education partnership program under
this subsection may be used in any fiscal year for adminis-
trative costs of the State’s higher education agency des-
ignated in the State plan.
(d) LIBRARY AND LITERACY PROGRAMS.—(1) For
each fiscal year 10 percent of each State’s allocation under
section 402(a) shall be used by the State library adminis-
trative agency to support collaborative activities among li-
braries, literacy programs, and local educational agencies
in accordance with section 104.
(2) Not less than 90 percent of the amount available
for this section shall be used by the State for grants to
local public libraries and literacy programs in accordance
with the provisions of section 104.
(3) Not more than 5 percent of the amount available
under this section, or $20,000, whichever is greater, may
be used by the State for the costs incurred for evaluation
of programs assisted under Section 104.
(4) Not more than 5 percent of the amount available
under this subsection may be used in any fiscal year by
the State library administrative agency for administrative
costs.
SEC. 102. ELEMENTARY AND SECONDARY EDUCATION PRO-
GRAMS.
(a) IN GENERAL.—The amount apportioned under
section 101(b) from each State’s allotment shall be used
by the State education agency to strengthen elementary
and secondary education programs in accordance with the
provisions of this section.
(b) LOCAL EDUCATION AGENCIES.—(1) Each local
education agency shall use the educational technology
funds available under section 101(b)(2) for—
(A) developing, adapting, or expanding existing
and new technological applications to support the
school reform effort; and
(B) funding projects of sufficient size and scope
to improve student learning, support professional de-
velopment, and provide administrative support.
(2) To be eligible to receive educational technology
funds under this section for school or other school man-
aged alternative learning environments a local education
agency must receive State approval of a technology use
plan which includes —
(A) a description of how the local education
agency plans to use the financial assistance received
under section 101(b)(2) to improve the use of tech-
nology in instruction, professional development and
administration;
(B) a description of how funds under section
101(b)(2) will be coordinated with other State, local
and Federal resources;
(C) a description of how the school programs
will use other resources of the community and in-
volve public agencies, private industry, institutions
of higher education, public and private nonprofit or-
ganizations, and other appropriate institutions, and
how other appropriate learning environments and
adult technology, learning and literacy programs
might link and share resources;
(D) assurances that the programs will be evalu-
ated and outcomes reported in terms of the level of
implementation of the technology-based resources
funded by this Act, the impact on teaching and
learning, the changes in the school program, and the
extent to which the school will sustain the project
after funding is terminated;
(E) assurances that the plan will be consistent
with district level planning for educational tech-
nology, and will support local and State curriculum
frameworks;
(F) assurances that the plan will be developed
in conjunction with other Federal, State and local
policies as appropriate, including chapter 1 and spe-
cial education;
(G) provisions to support, as needed, individual
teachers to develop and implement technology-based
intervention projects, including those which respond
to the needs of students with disabilities;
(H) a description of how the financial assist-
ance will be used for the expansion and improvement
of inservice training and retraining and, if appro-
priate, preservice training, of teachers and other ap-
propriate school personnel regarding the use of tech-
nology in schools, including the use of computers,
videos, and telecommunications to enhance learn-
ing—
(i) such training and instruction may be
carried out through agreements with public
agencies, private industry, institutions of higher
education, regional educational laboratories and
national research centers, nonprofit organiza-
tions, (including museums) libraries, edu-
cational television stations, and other appro-
priate institutions including the Regional Edu-
cational Technology Assistance Consortia, es-
tablished under section 301;
(ii) a local education agency may carry out
the activities authorized by this paragraph with
one or more other local education agencies,
State education agencies, or both; and
(iii) each local education agency shall as-
sure that programs of training, inservice train-
ing and retraining will take into account the
need for greater access to and participation in
the use of technology;
(I) a description of how the plan will address
the special needs of urban and rural schools;
(J) a description of a strategy for the enhanced
involvement of parents through the use of tech-
nology; and
(K) a description of how the plan will address
the needs of students with disabilities.
(3) A local education agency for any fiscal year may
apply for financial assistance as part of a consortium with
other local education agencies, institutions of higher edu-
cation, intermediate educational units or other appropriate
education entities to provide local programs. The State
education agency may assist in the formation of consortia
between local education agencies, institutions of higher
education, intermediate educational units or other appro-
priate education entities to provide services for the teach-
ers and students in a local education agency at the request
of such local education agency.
SEC. 103. HIGHER EDUCATION PROGRAMS.
(a) IN GENERAL.—The amount apportioned under
section 101(c) from each State’s allotment shall be used
by the State for education programs in accordance with
the provisions of this section.
(b) GRANTS
TO INSTITUTIONS
OF HIGHER EDU-
CATION.—(1) The State agency for higher education, in
accordance with the State education technology plan filed
under section 105, shall make grants available on a com-
petitive basis to institutions of higher education in the
State which form partnerships with one or more local edu-
cation agencies.
(2) The State shall make every effort to ensure equi-
table participation of private and public institutions of
higher education.
(3) The amount available under subsection 101(c)(2)
shall be used for—
(A) training programs for new teachers in the
use of technology as an educational adjunct;
(B) inservice training for elementary, second-
ary, and vocational school teachers and training for
other appropriate school personnel to improve their
ability to use educational technology in their teach-
ing; and
(C) programs to improve student performance
in academic and work skill areas through the use of
technology.
(4) No institution of higher education may receive as-
sistance under paragraph (3)(A), (B), and (C) of this sub-
section unless the institution enters into an agreement
with a local education agency, or consortium of such agen-
cies, to provide inservice training and retraining for the
elementary and secondary school teachers in the public
and private schools of the school district of each agency.
(c) COOPERATIVE PROGRAM.—The State higher edu-
cation agency may use funds described in section
101(c)(2) to achieve the objectives of section 103(b) by
establishing cooperative programs among institutions of
higher education, private industry, and non-profit organi-
zations, that include one or more local education agencies,
for the development and dissemination of projects to im-
prove student performance in academic or work skill
areas.
(d) REPORTING.—In accordance with section 101(c),
5 percent of the funding available for higher education
partnerships shall be used by the agency for higher edu-
cation for reporting the progress of the programs funded
under this section and such reports shall, be provided to
the State education agency annually.
SEC. 104. LIBRARY AND LITERACY PROGRAMS.
(a) IN GENERAL.—Except as provided in paragraph
(2), the amount apportioned under section 101(d) from
each State’s allotment under this section shall be used by
the State to assist literacy and education programs in ac-
cordance with the provisions of this section.
(b) GRANTS TO LOCAL PUBLIC LIBRARIES.—(1) In
accordance with the State education technology plan filed
under section 105, the State library administrative agency
shall make grants available on a competitive basis to local
public libraries in the State which demonstrate involve-
ment of one or more local education agencies and literacy
programs or organizations in their activities.
(2) The amount available under section 101(d)(2)
shall be used for—
(A) developing programs that help libraries,
local education agencies, and literacy programs use
technology to share services and resources and de-
velop collaborative activities that improve their per-
formance and that of the students in academic and
work skill areas; and
(B) inservice training for library, literacy, and
other appropriate personnel to improve their skills in
the use of educational technology and telecommuni-
cations.
(c) COOPERATIVE PROGRAM.—The State library ad-
ministration agency may use funds described in section
101(d)(2) to achieve the objectives of section 104(b) by
establishing cooperative programs among public libraries,
literacy organizations, private industries, and nonprofit
education organizations, if such programs include one or
more local education agencies and literacy programs, for
the development and dissemination of projects to improve
the performance of literacy programs and of students in
academic or work skill areas.
(d) REPORTING.—In accordance with section 101(d),
5 percent of the funding available for library and literacy
programs shall be used by the library administrative agen-
cy for reporting the progress of the programs funded
under this section and such reports shall be provided to
the State education agency annually.
SEC. 105. STATE EDUCATIONAL TECHNOLOGY PLAN.
(a) APPLICATION.—Each State education agency
which desires to receive a grant under this title shall, in
consultation with the State agency for higher education
and the State library administrative agency, file a single
educational technology plan with the Secretary of Edu-
cation which covers a period of 5 fiscal years. The State
education agency shall be responsible for funding, super-
vising, and coordinating programs described under this
title and shall file the educational technology plan at such
time, in such manner, and containing or accompanied by
such financial, educational and technological information
as this section requires or as the Secretary may reasonably
require.
(b) CONTENTS OF THE PLAN.—Each such plan shall
include financial information (items 1–6 at minimum),
educational information (items 7–10 at minimum), and
technological information (items 11–14 at minimum), and
shall—
(1) designate the State agency or agencies re-
sponsible for administering the elementary and sec-
ondary programs under section 102, and the higher
education programs under section 103 and designate
the State library administrative agency to administer
the library and literacy programs under section 104
in support of improved student learning;
(2) describe a financial plan developed by the
State education agency, which must be approved and
recommended to the Secretary by the Educational
Technology Authority, established in section 202.
The financial plan shall—
(A) design financial assistance mechanisms
to best fit the technology needs of the State.
Such mechanisms, which must be included in
the plan, may include, but not be limited to—
(i) grants;
(ii) matching grants;
(iii) loans;
(iv) loan guarantees; and
(v) other credit enhancements as de-
fined in section 4(b)(11);
(B) describe procedures for submitting ap-
plications for programs described in sections
102, 103, and 104 for funding assistance under
section 101 within the State;
(C) describe procedures for approval of ap-
plications by the appropriate State administra-
tive agency including appropriate procedures to
assure that such administrative agency will not
disapprove an application without notice and
opportunity for a hearing;
(D) delineate processes for auditing and
monitoring the use of funds by recipients;
(E) determine priorities for awarding
funds under various funding mechanisms; and
(F) construe nothing in subsection (b)(2)
to implicitly or explicitly imply that the funds
made available under this subsection, through
whatever mechanism is chosen by the State
agency, and recommended for approval to the
Secretary by the Educational Technology Au-
thority, are backed by the full faith and credit
of the Federal Government;
(3) designate the State education agency or an-
other single agency to carry out the financial plan
developed by the State education agency and to allo-
cate funds received under sections 101 and
402(a)(2). Such designated agency shall be respon-
sible for—
(A) maintaining appropriate records of al-
location of funds, and, in the case of loans, ade-
quate collection procedures and records;
(B) reporting annually to the Educational
Technology Authority, established under section
202, on the use of the funds it has received
from the Authority; and
(C) reporting annually to the Secretary on
the use of funds received under section
402(a)(2);
(4) describe an implementation strategy to co-
ordinate the expenditure of financial assistance paid
under sections 101 and 402(a)(2) with other State
and local funds, other Federal funds and resources,
and any resources and funding made available under
section 202(i);
(5) provide assurances that—
pendency of the United States, or by the District of Co-
lumbia, or by any county, municipality, or local taxing au-
thority, except that any real property of the corporation
shall be subject to State, territorial, county, municipal, or
local taxation to the same extent according to its value
as other real property is taxed.
(d) ADMINISTRATOR OF THE AUTHORITY.—The Ad-
ministrator of the Authority shall be appointed by the
President for a term of five years.
(e) BOARD OF DIRECTORS.—
(1) BOARD MEMBERSHIP.—The Authority shall
have a Board of Directors which shall consist of 11
persons, 1 of whom shall be designated Chairman by
the President, and who shall include—
(A) one Director, who shall be the Deputy
Secretary of Education;
(B) six Directors, who shall be appointed
by the President;
(C) two Directors, who shall be appointed
by the Speaker of the United States House of
Representatives; and
(D) two Directors, who shall be appointed
by the majority leader of the United States
Senate.
(2) COMPOSITION OF THE BOARD.—