HR 4094 IH
106th CONGRESS
2d Session
H. R. 4094
To amend the Internal Revenue Code of 1986 to expand the incentives
for the construction and renovation of public schools.
IN THE HOUSE OF REPRESENTATIVES
March 28, 2000
Mrs. JOHNSON of Connecticut (for herself, Mr. RANGEL, Mr. HOUGHTON, Mr.
STARK, Mr. MATSUI, Mr. COYNE, Mr. LEVIN, Mr. CARDIN, Mr. MCDERMOTT, Mr. KLECZKA,
Mr. LEWIS of Georgia, Mr. NEAL of Massachusetts, Mr. MCNULTY, Mr. BECERRA, Mrs.
THURMAN, Mrs. MORELLA, Mr. GEPHARDT, Mr. GILCHREST, Mr. BONIOR, Mr. GILMAN, Mr.
TRAFICANT, Mr. QUINN, Mr. DOYLE, Mr. NEY, Mr. CAPUANO, Mr. HORN, Mr. MEEKS of
New York, Mr. LEACH, Mr. FORBES, Mr. BOEHLERT, Mr. BALDACCI, Mr. EHLERS, Mr.
FATTAH, Mrs. KELLY, Mr. ENGEL, Mr. MCHUGH, Mrs. LOWEY, Mr. FRANKS of New Jersey,
Mrs. CAPPS, Mr. WALSH, Mrs. MALONEY of New York, Mr. SAXTON, Mr. BARCIA, Mr.
CROWLEY, Mr. CONYERS, Mrs. CLAYTON, Mr. FARR of California, Mrs. TAUSCHER, Mr.
BLAGOJEVICH, Mr. NADLER, Mr. MOAKLEY, Mr. HINCHEY, Mr. PASTOR, Mrs. MCCARTHY of
New York, Mr. ABERCROMBIE, Mr. BROWN of Ohio, Ms. VELAZQUEZ, Mr. SKELTON, Mr.
WEINER, Mr. ETHERIDGE, Mrs. CHRISTENSEN, Mr. DIXON, Mr. MASCARA, Mr. OBERSTAR,
Mr. PALLONE, Mr. BISHOP, Mr. SANDLIN, Mr. FRANK of Massachusetts, Ms.
JACKSON-LEE of Texas, Ms. ROYBAL-ALLARD, Ms. LOFGREN, Ms. WOOLSEY, Mr. TIERNEY,
Mr. FILNER, Mr. BORSKI, Mr. FROST, Mr. PAYNE, Mrs. NAPOLITANO, Mr. BACA, Mr.
BLUMENAUER, Mr. WEYGAND, Ms. WATERS, Mr. OWENS, Mrs. JONES of Ohio, Mr. KENNEDY
of Rhode Island, Ms. NORTON, Mr. WAXMAN, Mr. DINGELL, Mr. STRICKLAND, Ms.
SANCHEZ, Mr. LANTOS, Mr. ALLEN, Mr. BAIRD, Mr. BARRETT of Wisconsin, Mr. BERMAN,
Ms. CARSON, Mr. DEUTSCH, Mr. GREEN of Texas, Mr. HOYER, Mr. SNYDER, Mr. SHERMAN,
Mr. TOWNS, Mr. REYES, Mr. MALONEY of Connecticut, Mr. KILDEE, Ms. SCHAKOWSKY,
Mr. WU, Mr. CLAY, Mrs. MEEK of Florida, Mr. ACKERMAN, Mr. MCGOVERN, Mr.
MENENDEZ, Mr. MCINTYRE, Mr. JEFFERSON, Mr. POMEROY, and Ms. BERKLEY) introduced
the following bill; which was referred to the Committee on Ways and Means, and
in addition to the Committee on Education and the Workforce, for a period to be
subsequently determined by the Speaker, in each case for consideration of such
provisions as fall within the jurisdiction of the committee concerned
A BILL
To amend the Internal Revenue Code of 1986 to expand the incentives
for the construction and renovation of public schools.
Be it enacted by the Senate and House of Representatives of the United
States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the `America's Better Classroom Act of 2000'.
SEC. 2. EXPANSION OF INCENTIVES FOR PUBLIC SCHOOLS.
(a) IN GENERAL- Chapter 1 of the Internal Revenue Code of 1986 is amended
by adding at the end the following new subchapter:
`Subchapter X--Public School Modernization Provisions
`Sec. 1400F. Credit to holders of qualified public school modernization
bonds.
`Sec. 1400G. Qualified school construction bonds.
`Sec. 1400H. Qualified zone academy bonds.
`SEC. 1400F. CREDIT TO HOLDERS OF QUALIFIED PUBLIC SCHOOL MODERNIZATION
BONDS.
`(a) ALLOWANCE OF CREDIT- In the case of a taxpayer who holds a qualified
public school modernization bond on a credit allowance date of such bond which
occurs during the taxable year, there shall be allowed as a credit against the
tax imposed by this chapter for such taxable year an amount equal to the sum
of the credits determined under subsection (b) with respect to credit
allowance dates during such year on which the taxpayer holds such bond.
`(1) IN GENERAL- The amount of the credit determined under this
subsection with respect to any credit allowance date for a qualified public
school modernization bond is 25 percent of the annual credit determined with
respect to such bond.
`(2) ANNUAL CREDIT- The annual credit determined with respect to any
qualified public school modernization bond is the product of--
`(A) the applicable credit rate, multiplied by
`(B) the outstanding face amount of the bond.
`(3) APPLICABLE CREDIT RATE- For purposes of paragraph (1), the
applicable credit rate with respect to an issue is the rate equal to an
average market yield (as of the day before the date of issuance of the
issue) on outstanding long-term corporate debt obligations (determined under
regulations prescribed by the Secretary).
`(4) SPECIAL RULE FOR ISSUANCE AND REDEMPTION- In the case of a bond
which is issued during the 3-month period ending on a credit allowance date,
the amount of the credit determined under this subsection with respect to
such credit allowance date shall be a ratable portion of the credit
otherwise determined based on the portion of the 3-month period during which
the bond is outstanding. A similar rule shall apply when the bond is
redeemed.
`(c) LIMITATION BASED ON AMOUNT OF TAX-
`(1) IN GENERAL- The credit allowed under subsection (a) for any taxable
year shall not exceed the excess of--
`(A) the sum of the regular tax liability (as defined in section
26(b)) plus the tax imposed by section 55, over
`(B) the sum of the credits allowable under part IV of subchapter A
(other than subpart C thereof, relating to refundable credits).
`(2) CARRYOVER OF UNUSED CREDIT- If the credit allowable under
subsection (a) exceeds the limitation imposed by paragraph (1) for such
taxable year, such excess shall be carried to the succeeding taxable year
and added to the credit allowable under subsection (a) for such taxable
year.
`(d) QUALIFIED PUBLIC SCHOOL MODERNIZATION BOND; CREDIT ALLOWANCE DATE-
For purposes of this section--
`(1) QUALIFIED PUBLIC SCHOOL MODERNIZATION BOND- The term `qualified
public school modernization bond' means--
`(A) a qualified zone academy bond, and
`(B) a qualified school construction bond.
`(2) CREDIT ALLOWANCE DATE- The term `credit allowance date'
means--
Such term includes the last day on which the bond is outstanding.
`(e) OTHER DEFINITIONS- For purposes of this subchapter--
`(1) LOCAL EDUCATIONAL AGENCY- The term `local educational agency' has
the meaning given to such term by section 14101 of the Elementary and
Secondary Education Act of 1965. Such term includes the local educational
agency that serves the District of Columbia but does not include any other
State agency.
`(2) BOND- The term `bond' includes any obligation.
`(3) STATE- The term `State' includes the District of Columbia and any
possession of the United States.
`(4) PUBLIC SCHOOL FACILITY- The term `public school facility' shall not
include--
`(A) any stadium or other facility primarily used for athletic
contests or exhibitions or other events for which admission is charged to
the general public, or
`(B) any facility which is not owned by a State or local government or
any agency or instrumentality of a State or local government.
`(f) CREDIT INCLUDED IN GROSS INCOME- Gross income includes the amount of
the credit allowed to the taxpayer under this section (determined without
regard to subsection (c)) and the amount so included shall be treated as
interest income.
`(g) BONDS HELD BY REGULATED INVESTMENT COMPANIES- If any qualified public
school modernization bond is held by a regulated investment company, the
credit determined under subsection (a) shall be allowed to shareholders of
such company under procedures prescribed by the Secretary.
`(h) CREDITS MAY BE STRIPPED- Under regulations prescribed by the
Secretary--
`(1) IN GENERAL- There may be a separation (including at issuance) of
the ownership of a qualified public school modernization bond and the
entitlement to the credit under this section with respect to such bond. In
case of any such separation, the credit under this section shall be allowed
to the person who on the credit allowance date holds the instrument
evidencing the entitlement to the credit and not to the holder of the
bond.
`(2) CERTAIN RULES TO APPLY- In the case of a separation described in
paragraph (1), the rules of section 1286 shall apply to the qualified public
school modernization bond as if it were a stripped bond and to the credit
under this section as if it were a stripped coupon.
`(i) TREATMENT FOR ESTIMATED TAX PURPOSES- Solely for purposes of sections
6654 and 6655, the credit allowed by this section to a taxpayer by reason of
holding a qualified public school modernization bonds on a credit allowance
date shall be treated as if it were a payment of estimated tax made by the
taxpayer on such date.
`(j) CREDIT MAY BE TRANSFERRED- Nothing in any law or rule of law shall be
construed to limit the transferability of the credit allowed by this section
through sale and repurchase agreements.
`(k) REPORTING- Issuers of qualified public school modernization bonds
shall submit reports similar to the reports required under section 149(e).
`(l) TERMINATION- This section shall not apply to any bond issued after
September 30, 2005.
`SEC. 1400G. QUALIFIED SCHOOL CONSTRUCTION BONDS.
`(a) QUALIFIED SCHOOL CONSTRUCTION BOND- For purposes of this subchapter,
the term `qualified school construction bond' means any bond issued as part of
an issue if--
`(1) 95 percent or more of the proceeds of such issue are to be used for
the construction, rehabilitation, or repair of a public school facility or
for the acquisition of land on which such a facility is to be constructed
with part of the proceeds of such issue,
`(2) the bond is issued by a State or local government within the
jurisdiction of which such school is located,
`(3) the issuer designates such bond for purposes of this section,
and
`(4) the term of each bond which is part of such issue does not exceed
15 years.
`(b) LIMITATION ON AMOUNT OF BONDS DESIGNATED- The maximum aggregate face
amount of bonds issued during any calendar year which may be designated under
subsection (a) by any issuer shall not exceed the sum of--
`(1) the limitation amount allocated under subsection (d) for such
calendar year to such issuer, and
`(2) if such issuer is a large local educational agency (as defined in
subsection (e)(4)) or is issuing on behalf of such an agency, the limitation
amount allocated under subsection (e) for such calendar year to such
agency.
`(c) NATIONAL LIMITATION ON AMOUNT OF BONDS DESIGNATED- There is a
national qualified school construction bond limitation for each calendar year.
Such limitation is--
`(1) $11,000,000,000 for 2001,
`(2) $11,000,000,000 for 2002, and
`(3) except as provided in subsection (f), zero after 2002.
`(d) 60 PERCENT OF LIMITATION ALLOCATED AMONG STATES-
`(1) IN GENERAL- 60 percent of the limitation applicable under
subsection (c) for any calendar year shall be allocated by the Secretary
among the States in proportion to the respective numbers of children in each
State who have attained age 5 but not age 18 for the most recent fiscal year
ending before such calendar year. The limitation amount allocated to a State
under the preceding sentence shall be allocated by the State to issuers
within such State and such allocations may be made only if there is an
approved State application.
`(2) MINIMUM ALLOCATIONS TO STATES-
`(A) IN GENERAL- The Secretary shall adjust the allocations under this
subsection for any calendar year for each State to the extent necessary to
ensure that the sum of--
`(i) the amount allocated to such State under this subsection for
such year, and
`(ii) the aggregate amounts allocated under subsection (e) to large
local educational agencies in such State for such year,
is not less than an amount equal to such State's minimum percentage of
the amount to be allocated under paragraph (1) for the calendar
year.
`(B) MINIMUM PERCENTAGE- A State's minimum percentage for any calendar
year is the minimum percentage described in section 1124(d) of the
Elementary and Secondary Education Act of 1965 (20 U.S.C. 6334(d)) for
such State for the most recent fiscal year ending before such calendar
year.
`(3) ALLOCATIONS TO CERTAIN POSSESSIONS- The amount to be allocated
under paragraph (1) to any possession of the United States other than Puerto
Rico shall be the amount which would have been allocated if all allocations
under paragraph (1) were made on the basis of respective populations of
individuals below the poverty line (as defined by the Office of Management
and Budget). In making other allocations, the amount to be allocated under
paragraph (1) shall be reduced by the aggregate amount allocated under this
paragraph to possessions of the United States.
`(4) ALLOCATIONS FOR INDIAN SCHOOLS- In addition to the amounts
otherwise allocated under this subsection, $200,000,000 for calendar year
2001, and $200,000,000 for calendar year 2002, shall be allocated by the
Secretary of the Interior for purposes of the construction, rehabilitation,
and repair of schools funded by the Bureau of Indian Affairs. In the case of
amounts allocated under the preceding sentence, Indian tribal governments
(as defined in section 7871) shall be treated as qualified issuers for
purposes of this subchapter.
`(5) APPROVED STATE APPLICATION- For purposes of paragraph (1), the term
`approved State application' means an application which is approved by the
Secretary of Education and which includes--
`(A) the results of a recent publicly-available survey (undertaken by
the State with the involvement of local education officials, members of
the public, and experts in school construction and management) of such
State's needs for public school facilities, including descriptions
of--
`(i) health and safety problems at such facilities,
`(ii) the capacity of public schools in the State to house projected
enrollments, and
`(iii) the extent to which the public schools in the State offer the
physical infrastructure needed to provide a high-quality education to
all students, and
`(B) a description of how the State will allocate to local educational
agencies, or otherwise use, its allocation under this subsection to
address the needs identified under subparagraph (A), including a
description of how it will--
`(i) ensure that the needs of both rural and urban areas will be
recognized,
`(ii) give highest priority to localities with the greatest needs,
as demonstrated by inadequate school facilities coupled with a low level
of resources to meet those needs,
`(iii) use its allocation under this subsection to assist localities
that lack the fiscal capacity to issue bonds on their own,
and
`(iv) ensure that its allocation under this subsection is used only
to supplement, and not supplant, the amount of school construction,
rehabilitation, and repair in the State that would have occurred in the
absence of such allocation.
Any allocation under paragraph (1) by a State shall be binding if such
State reasonably determined that the allocation was in accordance with the
plan approved under this paragraph.
`(e) 40 PERCENT OF LIMITATION ALLOCATED AMONG LARGEST SCHOOL DISTRICTS-
`(1) IN GENERAL- 40 percent of the limitation applicable under
subsection (c) for any calendar year
shall be allocated under paragraph (2) by the Secretary among local
educational agencies which are large local educational agencies for such year.
No qualified school construction bond may be issued by reason of an allocation
to a large local educational agency under the preceding sentence unless such
agency has an approved local application.
`(2) ALLOCATION FORMULA- The amount to be allocated under paragraph (1)
for any calendar year shall be allocated among large local educational
agencies in proportion to the respective amounts each such agency received
for Basic Grants under subpart 2 of part A of title I of the Elementary and
Secondary Education Act of 1965 (20 U.S.C. 6331 et seq.) for the most recent
fiscal year ending before such calendar year.
`(3) ALLOCATION OF UNUSED LIMITATION TO STATE- The amount allocated
under this subsection to a large local educational agency for any calendar
year may be reallocated by such agency to the State in which such agency is
located for such calendar year. Any amount reallocated to a State under the
preceding sentence may be allocated as provided in subsection (d)(1).
`(4) LARGE LOCAL EDUCATIONAL AGENCY- For purposes of this section, the
term `large local educational agency' means, with respect to a calendar
year, any local educational agency if such agency is--
`(A) among the 100 local educational agencies with the largest numbers
of children aged 5 through 17 from families living below the poverty
level, as determined by the Secretary using the most recent data available
from the Department of Commerce that are satisfactory to the Secretary,
or
`(B) 1 of not more than 25 local educational agencies (other than
those described in subparagraph (A)) that the Secretary of Education
determines (based on the most recent data available satisfactory to the
Secretary) are in particular need of assistance, based on a low level of
resources for school construction, a high level of enrollment growth, or
such other factors as the Secretary deems appropriate.
`(5) APPROVED LOCAL APPLICATION- For purposes of paragraph (1), the term
`approved local application' means an application which is approved by the
Secretary of Education and which includes--
`(A) the results of a recent publicly-available survey (undertaken by
the local educational agency or the State with the involvement of school
officials, members of the public, and experts in school construction and
management) of such agency's needs for public school facilities, including
descriptions of--
`(i) the overall condition of the local educational agency's school
facilities, including health and safety problems,
`(ii) the capacity of the agency's schools to house projected
enrollments, and
`(iii) the extent to which the agency's schools offer the physical
infrastructure needed to provide a high-quality education to all
students,
`(B) a description of how the local educational agency will use its
allocation under this subsection to address the needs identified under
subparagraph (A), and
`(C) a description of how the local educational agency will ensure
that its allocation under this subsection is used only to supplement, and
not supplant, the amount of school construction, rehabilitation, or repair
in the locality that would have occurred in the absence of such
allocation.
A rule similar to the rule of the last sentence of subsection (d)(6)
shall apply for purposes of this paragraph.
`(f) CARRYOVER OF UNUSED LIMITATION- If for any calendar year--
`(1) the amount allocated under subsection (d) to any State,
exceeds
`(2) the amount of bonds issued during such year which are designated
under subsection (a) pursuant to such allocation,
the limitation amount under such subsection for such State for the
following calendar year shall be increased by the amount of such excess. A
similar rule shall apply to the amounts allocated under subsection (d)(5) or
(e).
`(g) SPECIAL RULES RELATING TO ARBITRAGE-
`(1) IN GENERAL- A bond shall not be treated as failing to meet the
requirement of subsection (a)(1) solely by reason of the fact that the
proceeds of the issue of which such bond is a part are invested for a
temporary period (but not more than 36 months) until such proceeds are
needed for the purpose for which such issue was issued.
`(2) BINDING COMMITMENT REQUIREMENT- Paragraph (1) shall apply to an
issue only if, as of the date of issuance, there is a reasonable expectation
that--
`(A) at least 10 percent of the proceeds of the issue will be spent
within the 6-month period beginning on such date for the purpose for which
such issue was issued, and
`(B) the remaining proceeds of the issue will be spent with due
diligence for such purpose.
`(3) EARNINGS ON PROCEEDS- Any earnings on proceeds during the temporary
period shall be treated as proceeds of the issue for purposes of applying
subsection (a)(1) and paragraph (1) of this subsection.
`SEC. 1400H. QUALIFIED ZONE ACADEMY BONDS.
`(a) QUALIFIED ZONE ACADEMY BOND- For purposes of this subchapter--
`(1) IN GENERAL- The term `qualified zone academy bond' means any bond
issued as part of an issue if--
`(A) 95 percent or more of the proceeds of such issue are to be used
for a qualified purpose with respect to a qualified zone academy
established by a local educational agency,
`(B) the bond is issued by a State or local government within the
jurisdiction of which such academy is located,
`(i) designates such bond for purposes of this section,
`(ii) certifies that it has written assurances that the private
business contribution requirement of paragraph (2) will be met with
respect to such academy, and
`(iii) certifies that it has the written approval of the local
educational agency for such bond issuance, and
`(D) the term of each bond which is part of such issue does not exceed
15 years.
Rules similar to the rules of section 1400G(g) shall apply for purposes
of paragraph (1).
`(2) PRIVATE BUSINESS CONTRIBUTION REQUIREMENT-
`(A) IN GENERAL- For purposes of paragraph (1), the private business
contribution requirement of this paragraph is met with respect to any
issue if the local educational agency that established the qualified zone
academy has written commitments from private entities to make qualified
contributions having a present value (as of the date of issuance of the
issue) of not less than 10 percent of the proceeds of the issue.
`(B) QUALIFIED CONTRIBUTIONS- For purposes of subparagraph (A), the
term `qualified contribution' means any contribution (of a type and
quality acceptable to the local educational agency) of--
`(i) equipment for use in the qualified zone academy (including
state-of-the-art technology and vocational equipment),
`(ii) technical assistance in developing curriculum or in training
teachers in order to promote appropriate market driven technology in the
classroom,
`(iii) services of employees as volunteer mentors,
`(iv) internships, field trips, or other educational opportunities
outside the academy for students, or
`(v) any other property or service specified by the local
educational agency.
`(3) QUALIFIED ZONE ACADEMY- The term `qualified zone academy' means any
public school (or academic program within a public school) which is
established by and operated under the supervision of a local educational
agency to provide education or training below the postsecondary level
if--
`(A) such public school or program (as the case may be) is designed in
cooperation with business to enhance the academic curriculum, increase
graduation and employment rates, and better prepare students for the
rigors of college and the increasingly complex workforce,
`(B) students in such public school or program (as the case may be)
will be subject to the same academic standards and assessments as other
students educated by the local educational agency,
`(C) the comprehensive education plan of such public school or program
is approved by the local educational agency, and
`(D)(i) such public school is located in an empowerment zone or
enterprise community (including any such zone or community designated
after the date of the enactment of this section), or
`(ii) there is a reasonable expectation (as of the date of issuance of
the bonds) that at least 35 percent of the students attending such school
or participating in such program (as the case may be) will be eligible for
free or reduced-cost lunches under the school lunch program established
under the National School Lunch Act.
`(4) QUALIFIED PURPOSE- The term `qualified purpose' means, with respect
to any qualified zone academy--
`(A) constructing, rehabilitating, or repairing the public school
facility in which the academy is established,
`(B) acquiring the land on which such facility is to be constructed
with part of the proceeds of such issue,
`(C) providing equipment for use at such academy,
`(D) developing course materials for education to be provided at such
academy, and
`(E) training teachers and other school personnel in such
academy.
`(b) LIMITATIONS ON AMOUNT OF BONDS DESIGNATED-
`(1) IN GENERAL- There is a national zone academy bond limitation for
each calendar year. Such limitation is--
`(A) $400,000,000 for 1998,
`(B) $400,000,000 for 1999,
`(C) $400,000,000 for 2000,
`(D) $1,400,000,000 for 2001,
`(E) $1,400,000,000 for 2002, and
`(F) except as provided in paragraph (3), zero after 2002.
`(2) ALLOCATION OF LIMITATION-
`(A) ALLOCATION AMONG STATES-
`(i) 1998, 1999, and 2000 LIMITATIONS- The national zone academy
bond limitations for calendar years 1998, 1999, and 2000 shall be
allocated by the Secretary among the States on the basis of their
respective populations of individuals below the poverty line (as defined
by the Office of Management and Budget).
`(ii) LIMITATION AFTER 2000- The national zone academy bond
limitation for any calendar year after 2000 shall be allocated by the
Secretary among the States in proportion to the respective amounts each
such State received for Basic Grants under subpart 2 of part A of title
I of the Elementary and Secondary Education Act of 1965 (20 U.S.C. 6331
et seq.) for the most recent fiscal year ending before such calendar
year.
`(B) ALLOCATION TO LOCAL EDUCATIONAL AGENCIES- The limitation amount
allocated to a State under subparagraph (A) shall be allocated by the
State to qualified zone academies within such State.
`(C) DESIGNATION SUBJECT TO LIMITATION AMOUNT- The maximum aggregate
face amount of bonds issued during any calendar year which may be
designated under subsection (a) with respect to any qualified zone academy
shall not exceed the limitation amount allocated to such academy under
subparagraph (B) for such calendar year.
`(3) CARRYOVER OF UNUSED LIMITATION- If for any calendar year--
`(A) the limitation amount under this subsection for any State,
exceeds
`(B) the amount of bonds issued during such year which are designated
under subsection (a) (or the corresponding provisions of prior law) with
respect to qualified zone academies within such State,
the limitation amount under this subsection for such State for the
following calendar year shall be increased by the amount of such
excess.'
(b) REPORTING- Subsection (d) of section 6049 of such Code (relating to
returns regarding payments of interest) is amended by adding at the end the
following new paragraph:
`(8) REPORTING OF CREDIT ON QUALIFIED PUBLIC SCHOOL MODERNIZATION
BONDS-
`(A) IN GENERAL- For purposes of subsection (a), the term `interest'
includes amounts includible in gross income under section 1400F(f) and
such amounts shall be treated as paid on the credit allowance date (as
defined in section 1400F(d)(2)).
`(B) REPORTING TO CORPORATIONS, ETC- Except as otherwise provided in
regulations, in the case of any interest described in subparagraph (A) of
this paragraph, subsection (b)(4) of this section shall be applied without
regard to subparagraphs (A), (H), (I), (J), (K), and (L)(i).
`(C) REGULATORY AUTHORITY- The Secretary may prescribe such
regulations as are necessary or appropriate to carry out the purposes of
this paragraph, including regulations which require more frequent or more
detailed reporting.'
(c) CONFORMING AMENDMENTS-
(1) Subchapter U of chapter 1 of such Code is amended by striking part
IV, by redesignating part V as part IV, and by redesignating section 1397F
as section 1397E.
(2) The table of subchapters for chapter 1 of such Code is amended by
adding at the end the following new item:
`Subchapter X. Public school modernization provisions.'
(3) The table of parts of subchapter U of chapter 1 of such Code is
amended by striking the last 2 items and inserting the following item:
`Part IV. Regulations.'
(1) IN GENERAL- Except as otherwise provided in this subsection, the
amendments made by this section shall apply to obligations issued after
December 31, 2000.
(2) REPEAL OF RESTRICTION ON ZONE ACADEMY BOND HOLDERS- In the case of
bonds to
which section 1397E of the Internal Revenue Code of 1986 (as in effect before
the date of the enactment of this Act) applies, the limitation of such section
to eligible taxpayers (as defined in subsection (d)(6) of such section) shall
not apply after the date of the enactment of this Act.
SEC. 3. APPLICATION OF CERTAIN LABOR STANDARDS ON CONSTRUCTION PROJECTS
FINANCED UNDER PUBLIC SCHOOL MODERNIZATION PROGRAM.
Section 439 of the General Education Provisions Act (relating to labor
standards) is amended--
(1) by inserting `(a)' before `All laborers and mechanics', and
(2) by adding at the end the following:
`(b)(1) For purposes of this section, the term `applicable program' also
includes the qualified zone academy bond provisions enacted by section 226 of
the Taxpayer Relief Act of 1997 and the program established by section 2 of
the America's Better Classroom Act of 2000.
`(2) A State or local government participating in a program described in
paragraph (1) shall--
`(A) in the awarding of contracts, give priority to contractors with
substantial numbers of employees residing in the local education area to be
served by the school being constructed; and
`(B) include in the construction contract for such school a requirement
that the contractor give priority in hiring new workers to individuals
residing in such local education area.
`(3) In the case of a program described in paragraph (1), nothing in this
subsection or subsection (a) shall be construed to deny any tax credit allowed
under such program. If amounts are required to be withheld from contractors to
pay wages to which workers are entitled, such amounts shall be treated as
expended for construction purposes in determining whether the requirements of
such program are met.'.
SEC. 4. EMPLOYMENT AND TRAINING ACTIVITIES RELATING TO CONSTRUCTION OR
RECONSTRUCTION OF PUBLIC SCHOOL FACILITIES.
(a) IN GENERAL- Section 134 of the Workforce Investment Act of 1998 (29
U.S.C. 2864) is amended by adding at the end the following:
`(f) LOCAL EMPLOYMENT AND TRAINING ACTIVITIES RELATING TO CONSTRUCTION OR
RECONSTRUCTION OF PUBLIC SCHOOL FACILITIES-
`(1) IN GENERAL- In order to provide training services related to
construction or reconstruction of public school facilities receiving funding
assistance under an applicable program, each State shall establish a
specialized program of training meeting the following requirements:
`(A) The specialized program provides training for jobs in the
construction industry.
`(B) The program provides trained workers for projects for the
construction or reconstruction of public school facilities receiving
funding assistance under an applicable program.
`(C) The program ensures that skilled workers (residing in the area to
be served by the school facilities) will be available for the construction
or reconstruction work.
`(2) COORDINATION- The specialized program established under paragraph
(1) shall be integrated with other activities under this Act, with the
activities carried out under the National Apprenticeship Act of 1937 by the
State Apprenticeship Council or through the Bureau of Apprenticeship and
Training in the Department of Labor, as appropriate, and with activities
carried out under the Carl D. Perkins Vocational and Technical Education Act
of 1998. Nothing in this subsection shall be construed to require services
duplicative of those referred to in the preceding sentence.
`(3) APPLICABLE PROGRAM- In this subsection, the term `applicable
program' has the meaning given the term in section 439(b) of the General
Education Provisions Act (relating to labor standards).'.
(b) STATE PLAN- Section 112(b)(17)(A) of the Workforce Investment Act of
1998 (29 U.S.C. 2822(b)(17)(A)) is amended--
(1) in clause (iii), by striking `and' at the end;
(2) by redesignating clause (iv) as clause (v); and
(3) by inserting after clause (iii) the following:
`(iv) how the State will establish and carry out a specialized
program of training under section 134(f); and'.
END