S 1992 IS

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.

November 19, 1999

Ms. SNOWE introduced the following bill; which was read twice and referred to the Committee on Health, Education, Labor, and Pensions

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.

In this Act:

(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 15 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.

(a) LOAN AUTHORITY-

(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, 2002.

(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.

(b) LOAN REPAYMENT-

(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, 2005, 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 2006 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 and the Secretary of Education--

(1) jointly 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.

(b) AMOUNTS AVAILABLE-

(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, 2017.

(c) NOTIFICATION- The Secretary of the Treasury and the Secretary of Education jointly shall notify each State of the amount of funds the State may borrow under this Act.

END