S 2890 IS

To provide States with funds to support State, regional, and local school construction.

July 19, 2000

Ms. SNOWE (for herself and Mr. L. CHAFEE) introduced the following bill; which was read twice and referred to the Committee on Health, Education, Labor, and Pensions

To provide States with funds to support State, regional, and local school construction.

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, regional, and local entities in addressing school construction, renovation, and repair needs by providing low-interest loans for purposes of paying interest on related bonds and by supporting other State-administered school construction programs.

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 (20 U.S.C. 8801).

(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 that 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 (or portion of a bond) issued as part of an issue if--

(A) 95 percent or more of the proceeds attributable to such bond (or portion) 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;

(B) the bond is issued by a State, regional, or local entity, with bonding authority; and

(C) the issuer designates such bond (or portion) for purposes of this section.

(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 AND OTHER SUPPORT.

(a) LOAN AUTHORITY AND OTHER SUPPORT-

(1) LOANS AND STATE-ADMINISTERED PROGRAMS-

(A) IN GENERAL- Except as provided in subparagraph (B), from funds made available to a State under section 5(b) the State, in consultation with the State educational agency--

(i) shall use not less than 50 percent of the funds to make loans to State, regional, or local entities within the State to enable the entities to make annual interest payments on qualified school construction bonds that are issued by the entities not later than December 31, 2003; and

(ii) may use not more than 50 percent of the funds to support State revolving fund programs or other State-administered programs that assist State, regional, and local entities within the State in paying for the cost of construction, rehabilitation, repair, or acquisition described in section 3(5)(A).

(B) STATES WITH RESTRICTIONS- If, on the date of enactment of this Act, a State has in effect a law that prohibits the State from making the loans described in subparagraph (A)(i), the State, in consultation with the State educational agency, may use the funds described in subparagraph (A) to support the programs described in subparagraph (A)(ii).

(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.

(3) PRIORITY- In selecting entities to receive funds under paragraph (1) for projects involving construction, rehabilitation, repair, or acquisition of land for schools, the State shall give priority to entities with projects for schools with greatest need, as determined by the State. In determining the schools with greatest need, the State shall take into consideration whether a school--

(A) is among the schools that have the greatest numbers or percentages of children whose education imposes a higher than average cost per child, such as--

(i) children living in areas with high concentrations of low-income families;

(ii) children from low-income families; and

(iii) children living in sparsely populated areas;

(B) has inadequate school facilities and a low level of resources to meet the need for school facilities; or

(C) meets such criteria as the State may determine to be appropriate.

(b) REPAYMENT-

(1) IN GENERAL- Subject to paragraph (2), a State that uses funds made available under section 5(b) to make a loan or support a State-administered program under subsection (a)(1) shall repay to the stabilization fund the amount of the loan or support, plus interest, at an annual rate of 4.5 percent. A State shall not be required to begin making such repayment until the year immediately following the 15th year for which the State is eligible to receive annual distributions from the fund (which shall be the final year for which the State shall be eligible for such a distribution under this Act). The amount of such loan or support shall be fully repaid during the 10-year period beginning on the expiration of the eligibility of the State under this Act.

(2) EXCEPTIONS-

(A) IN GENERAL- The interest on the amount made available to a State under section 5(b) shall not accrue, prior to January 1, 2006, 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.

(B) APPLICABLE INTEREST RATE- Effective January 1, 2006, the applicable interest rate that will apply to an amount made available to a State under section 5(b) shall be--

(i) 0 percent with respect to years in which the amount appropriated to carry out part B of the Individuals with Disabilities Education Act (20 U.S.C. 1411 et seq.) is not sufficient to provide to each State at least 20 percent of the average per-pupil expenditure for providing special education and related services for each child with a disability in the State;

(ii) 2.5 percent with respect to years in which the amount described in clause (i) is not sufficient to provide to each State at least 30 percent of such average per-pupil expenditure;

(iii) 3.5 percent with respect to years in which the amount described in clause (i) is not sufficient to provide to each State at least 40 percent of such average per-pupil expenditure; and

(iv) 4.5 percent with respect to years in which the amount described in clause (i) is sufficient to provide to each State at least 40 percent of such average per-pupil expenditure.

(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 for--

(A) the interest on qualified school construction bonds; or

(B) a cost described in section 4(a)(1)(A)(ii); 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, and acquisition of land for school facilities, in the State that would have occurred in the absence of such funds.

SEC. 5. AMOUNTS AVAILABLE TO EACH STATE.

(a) RESERVATION FOR INDIANS-

(1) IN GENERAL- From $20,000,000,000 of the funds in the stabilization fund, the Secretary of the Treasury shall make available $400,000,000 to provide assistance to Indian tribes.

(2) USE OF FUNDS- An Indian tribe that receive assistance under paragraph (1)--

(A) shall use not less than 50 percent of the assistance for a loan to enable the Indian tribe 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 to be appropriate; and

(B) may use not more than 50 percent of the assistance to support tribal revolving fund programs or other tribal-administered programs that assist tribal governments in paying for the cost of construction, rehabilitation, repair, or acquisition described in section 3(5)(A), in accordance with the requirements of this Act that the Secretary of the Treasury determines to be appropriate.

(b) AMOUNTS AVAILABLE-

(1) IN GENERAL- Subject to paragraph (3) and 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) or (3), on an annual basis, during the period beginning on October 1, 2000, and ending September 30, 2017.

(3) SMALL STATE MINIMUM-

(A) MINIMUM- No State shall receive an amount under paragraph (1) that is less than $100,000,000.

(B) STATES- In this paragraph, the term `State' means each of the several States of the United States, the District of Columbia, the Commonwealth of Puerto Rico.

(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 receive for loans and other support under this Act.

END