(3) The term ‘‘school’’ includes a prekinder-
garten program (as that term is used in the Elemen-
tary and Secondary Education Act of 1965), an ele-
mentary school, a secondary school, and a local edu-
cational agency (as those terms are defined in sec-
tion 9101 of that Act). 
(4) The term ‘‘community based educational or-
ganization’’ means a nonprofit entity that qualifies 
as a nonprofit educational institution or organization 
for purposes of section 501(c)(3) of the Internal 
Revenue Code of 1986 and— 
(A) is engaged in collaborative projects, 
the primary focus of which is education, with 
schools, qualifying small towns, qualifying coun-
ties, or libraries; or 
(B) provides use of computers and Internet 
access to members of the community at no 
charge. 
(5) The term ‘‘qualifying small town’’ means a 
political subdivision with a population of not more 
than 24,999 individuals where 20 percent or more of 
the residents earn less than the poverty threshold 
(as defined by the Bureau of the Census). 
(6) The term ‘‘qualifying county’’ means a 
county where 20 percent or more of the residents 
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earn less than the poverty threshold (as defined by 
the Bureau of the Census). 
(7) The term ‘‘useful Federal electronic equip-
ment’’— 
(A) means— 
(i) computers and related peripheral 
tools (such as computer printers, modems, 
routers, 
and 
servers), 
including 
tele-
communications and research equipment; 
(ii) fax machines; and 
(iii) any other electronic equipment 
determined by a Federal agency to be po-
tentially useful to an educational recipient; 
and 
(B) includes computer software, where the 
transfer of a license is permitted. 
(8) The term ‘‘classroom-usable’’, with respect 
to useful Federal electronic equipment, means such 
equipment that does not require an upgrade of hard-
ware or software in order to be used by an edu-
cational recipient without being first transferred 
under section 2(c) to a nonprofit refurbisher for 
such an upgrade. 
(9) The term ‘‘nonprofit refurbisher’’ means an 
organization that— 
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(A) is exempt from income taxes under 
section 501(c) of the Internal Revenue Code of 
1986; and 
(B) upgrades useful Federal electronic 
equipment that is not yet classroom-usable at 
no cost or low cost to the ultimate educational 
recipient. 
SEC. 7. PREFERENCE IN DONATION OF PERSONAL PROP-
ERTY THROUGH STATE AGENCIES. 
Section 549(e)(3)(B) of title 40, United States Code, 
is amended— 
(1) by striking ‘‘The state plan’’ and inserting 
the following: 
‘‘(i) IN GENERAL.—The state plan’’; 
and 
(2) by adding at the end the following new 
clause: 
‘‘(ii) PREFERENCE.—The state plan 
of operation shall require the state agency 
to give the highest preference for electronic 
equipment to eligible institutions (as de-
scribed in subsection (c)(3)) that are lo-
cated in an enterprise community or em-
powerment zone designated under section 
1391 or 1400 of the Internal Revenue 
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Code of 1986, a political subdivision with 
a population of not more than 24,999 indi-
viduals where 20 percent or more of the 
residents earn less than the poverty thresh-
old (as defined by the Bureau of the Cen-
sus), or a county where 20 percent or more 
of the residents earn less than poverty 
threshold (as defined by the Bureau of the 
Census).’’. 
SEC. 8. REPORT TO CONGRESS. 
(a) REPORT REQUIRED.—Not later than 18 months 
after the date of the enactment of this Act, the Adminis-
trator of General Services shall submit to Congress a re-
port. 
(b) CONTENTS OF REPORT.—The report shall con-
tain the following: 
(1) An inventory of items that Federal agencies 
identified as useful Federal electronic equipment 
that the agency has determined is excess to its needs 
in the first 365 days after the date of the enactment 
of this Act. 
(2) The number of such items that were— 
(A) transferred to educational recipients 
pursuant to this Act; 
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(B) transferred to other Federal agencies 
and organizations pursuant to section 521 of 
title 40, United States Code; 
(C) transferred to State agencies pursuant 
to section 549 of title 40, United State Code; 
or 
(D) disposed of through other means. 
(3) Recommendations for further legislation or 
administrative action that the Administrator con-
siders appropriate to establish an effective system 
for transferring excess useful Federal electronic 
equipment to educational recipients. 
Æ 
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