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SEC. 106. FAIR WAGES.

All laborers and mechanics employed by contractors or subcontractors in the performance of any contract and subcontract for the repair, renovation, alteration, or construction, including painting and decorating, of any facility or work that is financed in whole or in part by a grant under this title, shall be paid wages not less than those determined by the Secretary of Labor in accordance with the Act of March 3, 1931 (commonly known as the Davis -Bacon Act); as amended (40 U.S.C. 276a-276a-5). The Secretary of Labor shall have the authority and functions set forth in reorganization plan of No. 14 of 1950 (15 FR 3176; 64 Stat. 1267) and section 2 of the Act of June 1, 1934 (commonly known as the Copeland Anti-Kickback Act) as amended (40 U.S.C. 276c, 48 Stat. 948).

SEC. 107. REQUIREMENTS.

(a) SPECIAL RULES-

(1) MAINTENANCE OF EFFORT- An eligible local educational agency may receive a grant under this title for any fiscal year only if the Secretary finds that either the combined fiscal effort per student or the aggregate expenditures of that agency and the State with respect to the provision of free public education by such local educational agency for the preceding fiscal year was not less than 90 percent of such combined fiscal effort or aggregate expenditures for the fiscal year for which the determination is made.

(2) SUPPLEMENT NOT SUPPLANT- An eligible local educational agency shall use funds received under this title only to supplement the amount of funds that would, in the absence of such Federal funds, be made available from non-Federal sources for the repair, renovation, alteration, and construction of school facilities, and not to supplant such funds.

(b) GENERAL LIMITATIONS-

(1) REAL PROPERTY- No part of any grant funds under this title shall be used for the acquisition of any interest in real property.

(2) MAINTENANCE- Nothing in this title shall be construed to authorize the payment of maintenance costs in connection with any projects constructed in whole or in part with Federal funds provided under this title.

(3) ENVIRONMENTAL SAFEGUARDS- All projects carried out with Federal funds provided under this title shall comply with all relevant Federal, State, and local environmental laws and regulations.

(4) ATHLETIC AND SIMILAR FACILITIES- No funds received under this title shall be used for stadiums or other facilities that are primarily used for athletic contests or exhibitions or other events for which admission is charged to the general public.

SEC. 108. FEDERAL ASSESSMENT.

The Secretary shall reserve not more than 1 percent of funds appropriated for each fiscal year under section 110--

(1) to collect such data as the Secretary determines necessary at the school, local, and State levels;

(2) to conduct studies and evaluations, including national studies and evaluations, in order to--

(A) monitor the progress of projects supported with funds provided under this title; and

(B) evaluate the state of United States public elementary school and secondary school facilities; and

(3) to report to Congress by July 1, 2002, regarding the findings of the studies and evaluations described in paragraph (2).

SEC. 109. DEFINITIONS.

For the purpose of this title--

(1) the term `construction' includes--

(A) the concurrent installation of equipment; and

(B) the complete or partial replacement of an existing facility, but only if such replacement is less expensive and more cost-effective than repair, renovation, or alteration of the facility;

(2) the term `eligible local educational agency' means a local educational agency in which--

(A)(i) not less than 15 percent of the children that reside in the geographic area served by such agency are eligible to be counted 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.); or

(ii) the United States owns Federal property described in section 8013(5), that has an assessed value (determined as of the time or times when acquired) aggregating 90 percent or more of the assessed value of all real property in such agency (determined as of the time or times when so acquired); and

(B) demonstrates in the application submitted under section 103 that such agency has urgent repair, renovation, alteration, or construction needs for its public elementary schools or secondary schools facilities; and

(3) the term `facility' means a public structure suitable for use as a classroom, laboratory, library, media center, or related facility, the primary purpose of which is the academic or vocational instruction of public elementary school or secondary school students.

SEC. 110. AUTHORIZATION.

There are authorized to be appropriated to carry out this title $200,000,000 for fiscal year 2000 and such sums as may be necessary for each of the 4 succeeding fiscal years.

TITLE II--STATE INFRASTRUCTURE BANKS FOR SCHOOLS

SEC. 201. STATE INFRASTRUCTURE BANK PILOT PROGRAM.

(a) ESTABLISHMENT-

(1) COOPERATIVE AGREEMENTS- Subject to the provisions of this section, the Secretary of the Treasury, in consultation with the Secretary of Education, may enter into cooperative agreements with States for the establishment of State infrastructure banks and multistate infrastructure banks for making loans to local educational agencies for building or repairing elementary schools or secondary schools which provide free public education and to public libraries for building or repairing library facilities.

(2) INTERSTATE COMPACTS- Congress consents to 2 or more of the States that have entered into a cooperative agreement under paragraph (1) with the Secretary of the Treasury for the establishment of a multistate infrastructure bank to enter into an interstate compact establishing such bank in accordance with this section.

(b) FUNDING- The Secretary of the Treasury, in consultation with the Secretary of Education, shall make grants to State infrastructure banks and multistate infrastructure banks in a State that has entered into a cooperative agreement under subsection (a)(1) to provide initial capital for loans provided under this section to local educational agencies and public libraries. Each bank shall apply repayments of principal and interest on loans to the

making of additional loans. The Secretary shall take final action on an application for a grant under this subsection within 90 days of the date of the submittal of such application.

(c) INFRASTRUCTURE BANK REQUIREMENTS- In order to establish an infrastructure bank under this section, each State establishing the bank shall--

(1) contribute, at a minimum, to the accounts of the bank from non-Federal sources an amount equal to 100 percent of the amount of each capitalization grant made to the State and contributed to the bank under subsection (b);

(2) identify an operating entity of the State as recipient of the grant if the entity has the capacity to manage loan funds and issue debt instruments of the State for purposes of leveraging the funds;

(3) allow such funds to be used as reserve for debt issued by the State so long as proceeds are deposited in the fund for loan purposes;

(4) ensure that investment income generated by funds contributed to an account of the bank will be--

(A) credited to the account;

(B) available for use in providing loans to projects eligible for assistance from the account; and

(C) invested in United States Treasury securities, bank deposits, or such other financing instruments as the Secretary may approve to earn interest to enhance the leveraging of projects assisted by the bank;

(5) ensure that any loan from the bank will bear interest at or below the lowest interest rates being offered for bonds the income from which is exempt from Federal taxation, as determined by the State, to make the project that is the subject of the loan feasible;

(6) ensure that repayment of any loan from the bank will commence not later than 1 year after the project has been completed;

(7) ensure that the term for repaying any loan will not exceed 30 years after the date of the first payment on the loan under paragraph (6); and

(8) require the bank to make an annual report to the Secretary on its status and make such other reports as the Secretary may require by guidelines.

(d) FORMS OF ASSISTANCE FROM INFRASTRUCTURE BANKS-

(1) IN GENERAL- An infrastructure bank established under this section may make loans to a local educational agency or a public library in an amount equal to all or part of the cost of carrying out a project eligible for assistance under this section.

(2) APPLICATIONS FOR LOANS- An application to an infrastructure bank by a local educational agency or a public library for a loan shall include--

(A) in the case of a renovation project, a description of each architectural, civil, structural, mechanical, or electrical deficiency to be corrected with funds under a loan and the priorities to be applied;

(B) a description of the criteria used by the applicant to determine the type of corrective action necessary for the renovation of a facility;

(C) a description of improvements to be made and a cost estimate for the improvements;

(D) a description of how work undertaken with the loan will promote energy conservation; and

(E) such other information as the infrastructure bank may require.

An infrastructure bank shall take final action on a completed application submitted to it within 90 days after the date of its submittal.

(3) CRITERIA FOR LOANS- In considering applications for a loan, an infrastructure bank shall take into account--

(A) the extent to which the local educational agency or public library involved lacks the fiscal capacity, including the ability to raise funds through the full use of such agency's bonding capacity or otherwise, to undertake the project for which the loan would be used without the loan;

(B) in the case of a local educational agency, the threat that the condition of the physical plant in the project poses to the safety and well-being of students;

(C) the demonstrated need for the construction, reconstruction, or renovation based on the condition of the facility in the project; and

(D) the age of such facility.

(e) QUALIFYING PROJECTS-

(1) IN GENERAL- A project is eligible for a loan from an infrastructure bank if it is a project that consists of--

(A) the construction of new elementary schools or secondary schools to meet the needs imposed by enrollment growth;

(B) the repair or upgrading of classrooms or structures related to academic learning, including the repair of leaking roofs, crumbling walls, inadequate plumbing, poor ventilation equipment, and inadequate heating or light equipment;

(C) an activity to increase physical safety at the educational facility involved;

(D) an activity to enhance the educational facility involved to provide access for students, teachers, and other individuals with disabilities;

(E) an activity to address environmental hazards at the educational facility involved, such as poor ventilation, indoor air quality, or lighting;

(F) the provision of basic infrastructure that facilitates educational technology, such as communications outlets, electrical systems, power outlets, or a communication closet;

(G) work that will bring an educational facility into conformity with the requirements of--

(i) environmental protection or health and safety programs mandated by Federal, State, or local law if such requirements were not in effect when the facility was initially constructed; and

(ii) hazardous waste disposal, treatment, and storage requirements mandated by the Solid Waste Disposal Act (42 U.S.C. 6901 et seq.) or similar State laws;

(H) work that will enable efficient use of available energy resources, especially coal, solar power, and other renewable energy resources;

(I) work to detect, remove, or otherwise contain asbestos hazards in educational facilities; or

(J) work to construct new public library facilities or repair or upgrade existing public library facilities.

(2) DAVIS -BACON - The wage requirements of the Act of March 3, 1931 (commonly known as the Davis -Bacon Act); as amended (40 U.S.C. 276a-276a-5) shall apply with respect to individuals employed on the projects described in paragraph (1).

(f) SUPPLEMENTATION- Any loan made by an infrastructure bank shall be used to supplement and not supplant other Federal, State, and local funds available for building or repairing elementary schools or secondary schools.

(g) LIMITATION ON REPAYMENTS- Notwithstanding any other provision of law, the repayment of a loan from an infrastructure bank under this section may not be credited toward the non-Federal share of the cost of any project.

(h) SECRETARIAL REQUIREMENTS- In administering this section, the Secretary of the Treasury shall specify procedures and guidelines for establishing, operating, and providing assistance from an infrastructure bank.

(i) UNITED STATES NOT OBLIGATED- The contribution of Federal funds into an infrastructure bank established under this section shall not be construed as a commitment, guarantee, or obligation on the part of the United States to any third party, nor shall any third party have any right against the United States for payment solely by virtue of the contribution. Any security or debt financing instrument issued by the infrastructure bank shall expressly state that the security or instrument does not constitute a commitment, guarantee, or obligation of the United States.

(j) MANAGEMENT OF FEDERAL FUNDS- Sections 3335 and 6503 of title 31, United States Code, shall not apply to funds contributed under this section.

(k) PROGRAM ADMINISTRATION- For each of fiscal years 2000 through 2004, a State may expend not to exceed 2 percent of the Federal funds contributed to an infrastructure bank established by the State under this section to pay the reasonable costs of administering the bank.

(l) SECRETARIAL REVIEW- The Secretary of the Treasury shall review the financial condition of each infrastructure bank established under this section and transmit to Congress a report on the results of such review not later than 90 days after the completion of the review.

(m) AUTHORIZATION OF APPROPRIATIONS- For grants to States for the initial capitalization of infrastructure banks there are authorized to be appropriated $250,000,000 for fiscal year 2000 and each of the 4 succeeding fiscal years.

TITLE III--SCHOOLS AS CENTERS OF THE COMMUNITY

SEC. 301. FINDINGS.

Congress makes the following findings:

(1) Communities across the Nation need to build and modernize thousands of public elementary schools and secondary schools in the coming decade in ways that reflect new approaches to teaching and learning, and in ways that reflect the fact that learning is a lifelong process for persons of all ages. These schools can make an enduring difference for these communities by affecting not just students but entire neighborhoods for generations.

(2) The National Symposium on School Design has recommended that local educational agencies hold community dialogues that discuss the planning and design of their new school buildings. Community partnerships of parents, educators, architects, urban planners, students, and other interested parties can assist local educational agencies to design new schools that better meet the needs of their communities now and in the future.

(3) Establishing such community partnerships for the purpose of broadening public participation in the planning and design of schools encourages broader community involvement in the schools, generates creativity in the planning process, and promotes savings, cost-sharing, and the most effective use of the school building by the entire community. Such partnerships can help create schools that are centers of teaching and learning for the entire community.

SEC. 302. PURPOSE.

The purpose of this title is to assist local educational agencies and their communities to increase the involvement of parents, teachers, students, and community groups in the planning and design of new and renovated public elementary school and secondary school buildings that--

(1) enhance teaching and learning, and accommodate the needs of all learners;

(2) serve as a center of the community;

(3) promote health, safety, and security;

(4) effectively use all available resources; and

(5) are flexible and can accommodate changing community needs.

SEC. 303. PROGRAM AUTHORIZED.

(a) GRANTS AUTHORIZED-

(1) IN GENERAL- From funds appropriated under section 306, the Secretary shall award grants to local educational agencies participating in eligible consortia to enable the eligible consortia to support the planning and design of--

(A) new elementary school or secondary school buildings; or

(B) the renovation of existing elementary school or secondary school buildings.

(2) DEFINITION OF ELIGIBLE CONSORTIUM- In this title the term `eligible consortium' means a consortium that--

(A) shall include at least 1 local educational agency; and

(B) may include such organizations and individuals as a State educational agency, a community-based organization, a local government, a business or industry, an architect, a parent, teacher, or senior citizen group, a library, or a museum.

(b) REQUIREMENTS-

(1) DURATION- Grants under this title shall be awarded for not more than 1 year.

(2) LIMITATION- Not more than 1 grant provided under this title may be used to plan or design the same school.

(3) MATCHING- A grant under this title shall not be used to pay for more than 50 percent of the cost of a planning or design project. A recipient of a grant under this title shall provide at least 50 percent of the cost of the planning or design project from non-Federal sources, which may include in-kind contributions, fairly evaluated.

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