SECTION 1. SHORT TITLE.

    This Act may be cited as the ``National Digital School Districts 
Act''.

SEC. 2. NATIONAL DIGITAL SCHOOL DISTRICTS.

    (a) Purposes.--The purposes of this section are--
            (1) to address the important role that technology and the 
        Internet can play in enhancing and improving education in the 
        schools of the United States when resources are allocated 
        strategically and effectively;
            (2) to assist State and local school administrators in the 
        United States in effectively devoting resources on proven 
        methods to incorporate the use of high technology and the 
        Internet in educational curricula;
            (3) to encourage the development of innovative strategic 
        approaches to the appropriate and effective use of technology 
        in teaching, learning, and managing elementary schools and 
        secondary schools;
            (4) to evaluate and assess the various strategies described 
        in paragraph (3) and provide models for the innovative use of 
        technology in schools in the United States; and
            (5) to encourage partnerships between educational 
        institutions and the private sector relating to the use of 
        technology described in paragraph (3) in schools in the United 
        States.
    (b) Definitions.--In this section:
            (1) Elementary and secondary school; state and local 
        educational agencies.--The terms ``elementary school'', 
        ``secondary school'', State educational agency'' and ``local 
        educational agency'' have the meanings given such terms in the 
        Elementary and Secondary Education Act of 1965 (20 U.S.C. 6301 
        et seq.).
            (2) Secretary.--The term ``Secretary'' means the Secretary 
        of Education.
            (3) State.--The term ``State'' means 1 of the several 
        States of the United States and the District of Columbia.
            (4) State educational agency.--The term ``State educational 
        agency'' means the State educational agency of a State.
    (c) Grants to State Educational Agencies.--
            (1) Fiscal year 2002.--For fiscal year 2002, the Secretary 
        shall award 1 grant to each State educational agency to make 
        subgrants to local educational agencies to create national 
        digital school districts.
            (2) Fiscal year 2003.--
                    (A) In general.--For fiscal year 2003, the 
                Secretary shall award 1 grant to each State educational 
                agency to pay for the Federal share of the cost of 
                making subgrants to local educational agencies to 
                create national digital school districts.
                    (B) Federal share.--The Federal share of the cost 
                referred to in subparagraph (A) is 50 percent.
            (3) State applications.--To be eligible to receive a grant 
        under this section, a State educational agency shall submit an 
        application to the Secretary at such time, in such manner, and 
        containing such information as the Secretary may reasonably 
        require.
    (d) Subgrants to Local Educational Agencies.--
            (1) Subgrants.--A State educational agency that receives a 
        grant under subsection (c) shall use not less than 95 percent 
        of the funds made available through the grant to make 
        subgrants, on a competitive basis, to local educational 
        agencies.
            (2) Notice.--The State educational agency shall provide 
        notice to all local educational agencies in the State of the 
        availability of subgrants under this subsection and of the 
        requirements for applying for the subgrants.
            (3) Local applications.--To be eligible to receive a 
        subgrant under this section, a local educational agency shall 
        submit an application to the State educational agency at such 
        time, in such manner, and containing such information as the 
        State educational agency may reasonably require.
            (4) Use of subgrants.--A local educational agency that 
        receives a subgrant under this subsection may use the funds 
        made available through the subgrant to create a national 
        digital school district by--
                    (A) acquiring technology;
                    (B) providing teacher mentoring; and
                    (C) carrying out other efforts to achieve the 
                purposes of this section.
    (e) Academic Research.--The Secretary shall award grants, on a 
competitive basis, for fiscal year 2004 to institutions of higher 
education, to conduct research on the effectiveness of the technology 
used in national digital school districts.
    (f) Authorization of Appropriations.--There are authorized to be 
appropriated such sums as may be necessary to carry out this section.

SEC. 3. NATIONAL EVALUATION OF TECHNOLOGY PLANS.

    Not later than 36 months after the date of enactment of this Act, 
the Secretary, in consultation with other Federal departments or 
agencies, State and local educational practitioners, and policy makers, 
including teachers, principals and superintendents, and experts in 
technology and the application of technology to education, shall report 
to Congress on best practices in implementing technology effectively. 
The report shall include recommendations for the purpose of 
establishing best practices that can be widely implemented by State and 
local educational agencies.
Output: National Digital School Districts Act - Directs the Secretary of Education to: (1) make one-year grants to State educational agencies to make competitive subgrants to local educational agencies to create national digital school districts by acquiring technology, providing teacher mentoring, and other related efforts; (2) make competitive grants to institutions of higher education to conduct research on the effectiveness of the technology used in national digital school districts; and (3) evaluate and report on best practices in implementing technology in education.