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.

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.