HR 4054 IH
106th CONGRESS
2d Session
H. R. 4054
To provide States with loans to enable State entities or local
governments within the States to make interest payments on qualified school
construction bonds issued by the State entities or local governments, and for
other purposes.
IN THE HOUSE OF REPRESENTATIVES
March 22, 2000
Mrs. BIGGERT introduced the following bill; which was referred to the
Committee on Education and the Workforce
A BILL
To provide States with loans to enable State entities or local
governments within the States to make interest payments on qualified school
construction bonds issued by the State entities or local governments, and for
other purposes.
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 `Building, Renovating, Improving, and
Constructing Kids' Schools Act'.
SEC. 2. FINDINGS.
Congress make the following findings:
(1) According to a 1999 issue brief prepared by the National Center for
Education Statistics, the average public school in America is 42 years old,
and school buildings begin rapid deterioration after 40 years. In addition,
29 percent of all public schools are in the oldest condition, meaning that
the schools were built before 1970 and have either never been renovated or
were renovated prior to 1980.
(2) According to reports issued by the General Accounting Office (GAO)
in 1995 and 1996, it would cost $112,000,000,000 to bring the Nation's
schools into good overall condition, and one-third of all public schools
need extensive repair or replacement.
(3) Many schools do not have the appropriate infrastructure to support
computers and other technologies that are necessary to prepare students for
the jobs of the 21st century.
(4) Without impeding on local control, the Federal Government
appropriately can assist State and local governments in addressing school
construction, renovation, and repair needs by providing low-interest loans
for purposes of paying interest on related bonds.
SEC. 3. DEFINITIONS.
(1) BOND- The term `bond' includes any obligation.
(2) GOVERNOR- The term `Governor' includes the chief executive officer
of a State.
(3) 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.
(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.
(5) QUALIFIED SCHOOL CONSTRUCTION BOND- The term `qualified school
construction 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 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;
(B) the bond is issued by a State entity or local government;
(C) the issuer designates such bonds for purposes of this section;
and
(D) the term of each bond which is part of such issue does not exceed
20 years.
(6) STABILIZATION FUND- The term `stabilization fund' means the
stabilization fund established under section 5302 of title 31, United States
Code.
(7) STATE- The term `State' means each of the several States of the
United States, the District of Columbia, the Commonwealth of Puerto Rico,
the United States Virgin Islands, Guam, American Samoa, the Commonwealth of
the Northern Mariana Islands, the Republic of the Marshall Islands, the
Federated States of Micronesia, and the Republic of Palau.
SEC. 4. LOANS FOR SCHOOL CONSTRUCTION BOND INTEREST PAYMENTS.
(1) IN GENERAL- From funds made available to a State under section 5(b)
the State shall make loans to State entities or local governments within the
State to enable the entities and governments to make annual interest
payments on qualified school construction bonds that are issued by the
entities and governments not later than December 31, 2003.
(2) REQUESTS- The Governor of each State desiring assistance under this
Act shall submit a request to the Secretary of the Treasury at such time and
in such manner as the Secretary of the Treasury may require.
(1) IN GENERAL- Subject to paragraph (2), a State entity or local
government that receives a loan under this Act shall repay to the
stabilization fund the amount of the loan, plus interest, at the average
prime lending rate for the year in which the bond is issued, not to exceed
4.5 percent.
(2) EXCEPTION- A State entity or local government shall not repay the
amount of a loan made under this Act, plus interest, and the interest on a
loan made under this Act shall not accrue, prior to January 1, 2008, unless
the amount appropriated to carry out part B of the Individuals with
Disabilities Education Act (20 U.S.C. 1411 et seq.) for any fiscal year
prior to fiscal year 2009 is sufficient to fully fund such part for the
fiscal year at the originally promised level, which promised level would
provide to each State 40 percent of the average per-pupil expenditure for
providing special education and related services for each child with a
disability in the State.
(c) FEDERAL RESPONSIBILITIES- The Secretary of the Treasury--
(1) shall be responsible for ensuring that funds provided under this Act
are properly distributed;
(2) shall ensure that funds provided under this Act only are used to pay
the interest on qualified school construction bonds; and
(3) shall not have authority to approve or disapprove school
construction plans assisted pursuant to this Act, except to ensure that
funds made available under this Act are 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 funds.
SEC. 5. AMOUNTS AVAILABLE TO EACH STATE.
(a) RESERVATION FOR INDIANS- From $20,000,000,000 of the funds in the
stabilization fund, the Secretary of the Treasury shall make available
$400,000,000 to Indian tribes for loans to enable the Indian tribes to make
annual interest payments on qualified school construction bonds in accordance
with the requirements of this Act that the Secretary of the Treasury
determines appropriate.
(1) IN GENERAL- From $20,000,000,000 of the funds in the stabilization
fund that are not reserved under subsection (a), the Secretary of the
Treasury shall make available to each State submitting a request under
section 4(a)(2) an amount that bears the same relation to such remainder as
the amount the State received under part A of title I of the Elementary and
Secondary Education Act of 1965 (20 U.S.C. 6311 et seq.) for fiscal year
2000 bears to the amount received by all States under such part for such
year.
(2) DISBURSAL- The Secretary of the Treasury shall disburse the amount
made available to a State under paragraph (1), on an annual basis, during
the period beginning on October 1, 2000, and ending September 30,
2019.
(c) NOTIFICATION- The Secretary of the Treasury shall notify each State of
the amount of funds the State may borrow under this Act.
END