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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Building, Renovating, Improving, and 
Constructing Kids' Schools Act''.

SEC. 2. FINDINGS.

    Congress makes 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, 2004; 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;
                    (C) is located in an area experiencing high 
                population growth; or
                    (D) 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, 2007, 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 2007 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, 
                2007, 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 are 
        used only to pay for--
                    (A) the interest on qualified school construction 
                bonds; or
                    (B) a cost described in subsection (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 receives 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 
        2001 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, 2001, and ending September 30, 2018.
    (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.

Summary: Building, Renovating, Improving, and Constructing Kids' Schools Act - Directs the Secretary of the Treasury to make amounts in the Treasury stabilization fund available to States for loans for school construction bond interest payments and related support. Requires States to use at least 50 percent of such funds for loans to enable State, regional, or local entities to make annual interest payments on certain qualified school construction bonds they issue. Allows States to use up to 50 percent of such funds to support State revolving fund programs or other State-administered programs that assist such entities to pay for certain construction, rehabilitation, repair, or acquisition costs, with priority for projects for schools with the greatest need. Sets forth requirements for loan repayment and interest rate. Exempts a State from repayment and interest rate accrual before January 1, 2007, unless the amount appropriated to carry out assistance for education of all children with disabilities under the Individuals with Disabilities Education Act for any fiscal year before FY 2007 is sufficient to fully fund such assistance for the fiscal year at the originally promised level, which 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. Directs the Secretaries of the Treasury and of Education to ensure that funds are used only to pay for the interest on qualified school construction bonds or for certain other costs. Denies the Secretaries authority to approve or disapprove school construction plans assisted under this Act, except to ensure that funds 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.