I

106TH CONGRESS

1ST SESSION H. R. 892

To renew education in this country by providing funds for school renovation

and construction, scholarships that allow parents choice in education,

and tax incentives.

IN THE HOUSE OF REPRESENTATIVES

MARCH 2, 1999

Mr. FORBES introduced the following bill; which was referred to the Committee on Education and the Workforce, and in addition to the Committee

on Ways and Means, for a period to be subsequently determined by the

Speaker, in each case for consideration of such provisions as fall within

the jurisdiction of the committee concerned

A BILL

To renew education in this country by providing funds for

school renovation and construction, scholarships that

allow parents choice in education, and tax incentives.

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled,

3 SECTION 1. SHORT TITLE.

4 This Act may be cited as the ‘‘Renewing America’s

5 Schools Act’’.
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1 TITLE I—EDUCATIONAL

2 FACILITIES IMPROVEMENT

3 SEC. 101. PROVISION OF ASSISTANCE FOR CONSTRUCTION

4 AND RENOVATION OF EDUCATIONAL FACILI5 TIES.

6 Title XII of the Elementary and Secondary Edu7 cation Act of 1965 (20 U.S.C. 8501 et seq.) is amended—

8 (1) by striking sections 12002 and 12003;

9 (2) by redesignating sections 12001 and 12004

10 through 12013, as sections 12101 and 12102

11 through 12111, respectively;

12 (3) by inserting after the title heading the fol13 lowing:

14 ‘‘SEC. 12001. FINDINGS.

15 ‘‘The Congress finds the following:

16 ‘‘(1) The General Accounting Office performed

17 a comprehensive survey of the Nation’s public ele18 mentary and secondary school facilities, and found

19 severe levels of disrepair in all areas of the United

20 States.

21 ‘‘(2) The General Accounting Office concluded

22 more than 14,000,000 children attend schools in

23 need of extensive repair or replacement. Seven mil24 lion children attend schools with life safety code vio-
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1 lations. Twelve million children attend schools with

2 leaky roofs.

3 ‘‘(3) The General Accounting Office found the

4 problem of crumbling schools transcends demo5 graphic and geographic boundaries. At 38 percent of

6 urban schools, 30 percent of rural schools, and 29

7 percent of suburban schools, at least one building is

8 in need of extensive repair or should be completely

9 replaced.

10 ‘‘(4) The condition of school facilities has a di11 rect effect on the safety of students and teachers,

12 and on the ability of students to learn.

13 ‘‘(5) Academic research has proven a direct cor14 relation between the condition of school facilities and

15 student achievement. At Georgetown University, re16 searchers found students assigned to schools in poor

17 condition can be expected to fall 10.9 percentage

18 points below those in buildings in excellent condition.

19 Similar studies have demonstrated up to a 20 per20 cent improvement in test scores when students were

21 moved from a poor facility to a new facility.

22 ‘‘(6) The General Accounting Office found most

23 schools are not prepared to incorporate modern tech24 nology into the classroom. Forty-six percent of

25 schools lack adequate electrical wiring to support the
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1 full-scale use of technology. More than a third of

2 schools lack the requisite electrical power. Fifty-six

3 percent of schools have insufficient phone lines for

4 modems.

5 ‘‘(7) The Department of Education reported

6 that elementary and secondary school enrollment, al7 ready at a record high level, will continue to grow

8 during the period between 1996 and 2000, and that

9 in order to accommodate this growth, the United

10 States will need to build an additional 6,000 schools

11 over this time period.

12 ‘‘(8) The General Accounting Office found it

13 will cost $112,000,000,000 just to bring schools up

14 to good, overall condition, not including the cost of

15 modernizing schools so the schools can utilize 21st

16 century technology, nor including the cost of expan17 sion to meet record enrollment levels.

18 ‘‘(9) State and local financing mechanisms have

19 proven inadequate to meet the challenges facing to20 day’s aging school facilities. Large numbers of local

21 educational agencies have difficulties securing fi22 nancing for school facility improvement.

23 ‘‘(10) The Federal Government can support ele24 mentary and secondary school facilities, and can le-
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1 verage additional funds for the improvement of ele2 mentary and secondary school facilities.

3 ‘‘SEC. 12002. PURPOSE.

4 ‘‘The purpose of this title is to help State and local

5 authorities improve the quality of education at their public

6 schools through the provision of Federal funds to enable

7 the State and local authorities to meet the cost associated

8 with the improvement of school facilities within their juris9 dictions.

10 ‘‘PART A—GENERAL INFRASTRUCTURE

11 IMPROVEMENT GRANT PROGRAM’’;

12 and

13 (4) by adding at the end of part A the follow14 ing:

15 ‘‘PART B—CONSTRUCTION AND RENOVATION

16 BOND SUBSIDY PROGRAM

17 ‘‘SEC. 12201. DEFINITIONS.

18 ‘‘As used in this part:

19 ‘‘(1) EDUCATIONAL FACILITY.—The term ‘edu20 cational facility’ has the meaning given the term

21 ‘school’ in section 12110.

22 ‘‘(2) LOCAL AREA.—The term ‘local area’

23 means the geographic area served by a local edu24 cational agency.
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1 ‘‘(3) LOCAL BOND AUTHORITY.—The term

2 ‘local bond authority’ means—

3 ‘‘(A) a local educational agency with au4 thority to issue a bond for construction or ren5 ovation of educational facilities in a local area;

6 and

7 ‘‘(B) a political subdivision of a State with

8 authority to issue such a bond for an area in9 cluding a local area.

10 ‘‘(4) POVERTY LINE.—The term ‘poverty line’

11 means the official poverty line (as defined by the Of12 fice of Management and Budget, and revised annu13 ally in accordance with section 673(2) of the Omni14 bus Budget Reconciliation Act of 1981 (42 U.S.C.

15 9902(2))) applicable to a family of the size involved.

16 ‘‘(5) STATE.—The term ‘State’ means each of

17 the several States of the United States, the District

18 of Columbia, and the Commonwealth of Puerto Rico.

19 ‘‘SEC. 12202. AUTHORIZATION OF PROGRAM.

20 ‘‘(a) PROGRAM AUTHORITY.—Of the amount appro21 priated under section 12210 for a fiscal year and not re22 served under subsection (b), the Secretary shall use—

23 ‘‘(1) 20 percent of such amount to award

24 grants to local bond authorities for not more than
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1 125 eligible local areas as provided for under section

2 12203; and

3 ‘‘(2) 80 percent of such amount to award

4 grants to States as provided for under section

5 12204.

6 ‘‘(b) SPECIAL RULE.—The Secretary may reserve—

7 ‘‘(1) not more than 1 percent of the amount ap8 propriated under section 12210 to provide assistance

9 to Indian schools in accordance with the purpose of

10 this title;

11 ‘‘(2) not more than 0.5 percent of the amount

12 appropriated under section 12210 to provide assist13 ance to Guam, the United States Virgin Islands,

14 American Samoa, the Commonwealth of the North15 ern Mariana Islands, the Republic of the Marshall

16 Islands, the Federated States of Micronesia, and the

17 Republic of Palau to carry out the purpose of this

18 title; and

19 ‘‘(3) not more than 0.1 percent of the amount

20 appropriated under section 12210 to carry out sec21 tion 12209.

22 ‘‘SEC. 12203. DIRECT GRANTS TO LOCAL BOND AUTHORI23 TIES.

24 ‘‘(a) IN GENERAL.—The Secretary shall award a

25 grant under section 12202(a)(1) to eligible local bond au-
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1 thorities to provide assistance for construction or renova2 tion of educational facilities in a local area.

3 ‘‘(b) USE OF FUNDS.—The local bond authority shall

4 use amounts received through a grant made under section

5 12202(a)(1) to pay a portion of the interest costs applica6 ble to any local bond issued to finance an activity de7 scribed in section 12205 with respect to the local area.

8 ‘‘(c) ELIGIBILITY AND DETERMINATION.—

9 ‘‘(1) ELIGIBILITY.—To be eligible to receive a

10 grant under section 12202(a)(1) for a local area, a

11 local bond authority shall demonstrate the capacity

12 to issue a bond for an area that includes 1 of the

13 125 local areas for which the Secretary has made a

14 determination under paragraph (2).

15 ‘‘(2) DETERMINATION.—

16 ‘‘(A) MANDATORY.—The Secretary shall

17 make a determination of the 100 local areas

18 that have the highest numbers of children who

19 are—

20 ‘‘(i) aged 5 to 17, inclusive; and

21 ‘‘(ii) members of families with in22 comes that do not exceed 100 percent of

23 the poverty line.

24 ‘‘(B) DISCRETIONARY.—The Secretary

25 may make a determination of 25 local areas, for
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1 which the Secretary has not made a determina2 tion under subparagraph (A), that have extraor3 dinary needs for construction or renovation of

4 educational facilities that the local bond author5 ity serving the local area is unable to meet.

6 ‘‘(d) APPLICATION.—To be eligible to receive a grant

7 under section 12202(a)(1), a local bond authority shall

8 prepare and submit to the Secretary an application at

9 such time, in such manner, and containing such informa10 tion as the Secretary may require, including—

11 ‘‘(1) an assurance that the application was de12 veloped in consultation with parents and classroom

13 teachers;

14 ‘‘(2) information sufficient to enable the Sec15 retary to make a determination under subsection

16 (c)(2) with respect to such local authority;

17 ‘‘(3) a description of the architectural, civil,

18 structural, mechanical, or electrical construction or

19 renovation to be supported with the assistance pro20 vided under this part;

21 ‘‘(4) a cost estimate of the proposed construc22 tion or renovation;

23 ‘‘(5) an identification of other resources, such

24 as unused bonding capacity, that are available to
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1 carry out the activities for which assistance is re2 quested under this part;

3 ‘‘(6) a description of how activities supported

4 with funds provided under this part will promote en5 ergy conservation; and

6 ‘‘(7) such other information and assurances as

7 the Secretary may require.

8 ‘‘(e) AWARD OF GRANTS.—

9 ‘‘(1) IN GENERAL.—In awarding grants under

10 section 12202(a)(1), the Secretary shall give pref11 erence to a local bond authority based on—

12 ‘‘(A) the extent to which the local edu13 cational agency serving the local area involved

14 or the educational facility for which the author15 ity seeks a grant (as appropriate) meets the cri16 teria described in section 12103(a);

17 ‘‘(B) the extent to which the educational

18 facility is overcrowded; and

19 ‘‘(C) the extent to which assistance pro20 vided through the grant will be used to fund

21 construction or renovation that, but for receipt

22 of the grant, would not otherwise be possible to

23 undertake.

24 ‘‘(2) AMOUNT OF ASSISTANCE.—
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1 ‘‘(A) IN GENERAL.—In determining the

2 amount of assistance for which local bond au3 thorities are eligible under section 12202(a)(1),

4 the Secretary shall—

5 ‘‘(i) give preference to a local bond

6 authority based on the criteria specified in

7 paragraph (1); and

8 ‘‘(ii) consider—

9 ‘‘(I) the amount of the cost esti10 mate contained in the application of

11 the local bond authority under sub12 section (d)(4);

13 ‘‘(II) the relative size of the local

14 area served by the local bond author15 ity; and

16 ‘‘(III) any other factors deter17 mined to be appropriate by the Sec18 retary.

19 ‘‘(B) MAXIMUM AMOUNT OF ASSIST20 ANCE.—A local bond authority shall be eligible

21 for assistance under section 12202(a)(1) in an

22 amount that does not exceed the appropriate

23 percentage under section 12204(f)(3) of the in24 terest costs applicable to any local bond issued
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1 to finance an activity described in section

2 12205 with respect to the local area involved.

3 ‘‘SEC. 12204. GRANTS TO STATES.

4 ‘‘(a) IN GENERAL.—The Secretary shall award a

5 grant under section 12202(a)(2) to each eligible State to

6 provide assistance to the State, or local bond authorities

7 in the State, for construction and renovation of edu8 cational facilities in local areas.

9 ‘‘(b) USE OF FUNDS.—The State shall use amounts

10 received through a grant made under section

11 12202(a)(2)—

12 ‘‘(1) to pay a portion of the interest costs appli13 cable to any State bond issued to finance an activity

14 described in section 12205 with respect to the local

15 areas; or

16 ‘‘(2) to provide assistance to local bond authori17 ties in the State to pay a portion of the interest

18 costs applicable to any local bond issued to finance

19 an activity described in section 12205 with respect

20 to the local areas.

21 ‘‘(c) AMOUNT OF GRANT TO STATE.—

22 ‘‘(1) IN GENERAL.—From the amount available

23 for grants under section 12202(a)(2), the Secretary

24 shall award a grant to each eligible State that is

25 equal to the total of—
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1 ‘‘(A) a sum that bears the same relation2 ship to 50 percent of such amount as the total

3 amount of funds made available for all eligible

4 local educational agencies in the State under

5 part A of title I for such year bears to the total

6 amount of funds made available for all eligible

7 local educational agencies in all States under

8 such part for such year; and

9 ‘‘(B) a sum that bears the same relation10 ship to 50 percent of such amount as the total

11 amount of funds made available for all eligible

12 local educational agencies in the State under

13 title VI for such year bears to the total amount

14 of funds made available for all eligible local

15 educational agencies in all States under such

16 title for such year.

17 ‘‘(2) ELIGIBLE LOCAL EDUCATIONAL AGEN18 CIES.—For the purpose of paragraph (1) the term

19 ‘eligible local educational agency’ means a local edu20 cational agency that does not serve a local area for

21 which an eligible local bond authority received a

22 grant under section 12203.

23 ‘‘(d) STATE APPLICATIONS REQUIRED.—To be eligi24 ble to receive a grant under section 12202(a)(2), a State

25 shall prepare and submit to the Secretary an application
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1 at such time, in such manner, and containing such infor2 mation as the Secretary may require. Such application

3 shall contain—

4 ‘‘(1) a description of the process the State will

5 use to determine which local bond authorities will re6 ceive assistance under subsection (b)(2).

7 ‘‘(2) an assurance that grant funds under this

8 section will be used to increase the amount of school

9 construction or renovation in the State for a fiscal

10 year compared to such amount in the State for the

11 preceding fiscal years.

12 ‘‘(e) ADMINISTERING AGENCY.—

13 ‘‘(1) IN GENERAL.—The State agency with au14 thority to issue bonds for the construction or renova15 tion of educational facilities, or with the authority to

16 otherwise finance such construction or renovation,

17 shall administer the amount received through the

18 grant.

19 ‘‘(2) SPECIAL RULE.—If no agency described in

20 paragraph (1) exits, or if there is more than one

21 such agency, then the chief executive officer of the

22 State and the chief State school officer shall des23 ignate a State entity or individual to administer the

24 amounts received through the grant.

25 ‘‘(f) ASSISTANCE TO LOCAL BOND AUTHORITIES.—
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1 ‘‘(1) IN GENERAL.—To be eligible to receive as2 sistance from a State under this section, a local

3 bond authority shall prepare and submit to the State

4 agency designated under subsection (e) an applica5 tion at such time, in such manner, and containing

6 such information as the State agency may require,

7 including the information described in section

8 12203(d).

9 ‘‘(2) CRITERIA.—In awarding grants under this

10 section, the State agency shall give preference to a

11 local bond authority based on—

12 ‘‘(A) the extent to which the local edu13 cational agency serving the local area involved

14 or the educational facility for which the author15 ity seeks the grant (as appropriate) meets the

16 criteria described in section 12103(a);

17 ‘‘(B) the extent to which the educational

18 facility is overcrowded; and

19 ‘‘(C) the extent to which assistance pro20 vided through the grant will be used to fund

21 construction or renovation that, but for receipt

22 of the grant, would not otherwise be possible to

23 undertake.
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1 ‘‘(3) AMOUNT OF ASSISTANCE.—A local bond

2 authority seeking assistance for a local area served

3 by a local educational agency described in—

4 ‘‘(A) clause (i)(I) or clause (ii)(I) of sec5 tion 1125(c)(2)(A), shall be eligible for assist6 ance in an amount that does not exceed 10 per7 cent;

8 ‘‘(B) clause (i)(II) or clause (ii)(II) of sec9 tion 1125(c)(2)(A), shall be eligible for assist10 ance in an amount that does not exceed 20 per11 cent;

12 ‘‘(C) clause (i)(III) or clause (ii)(III) of

13 section 1125(c)(2)(A), shall be eligible for as14 sistance in an amount that does not exceed 30

15 percent;

16 ‘‘(D) clause (i)(IV) or clause (ii)(IV) of

17 section 1125(c)(2)(A), shall be eligible for as18 sistance in an amount that does not exceed 40

19 percent; and

20 ‘‘(E) clause (i)(V) or clause (ii)(V) of sec21 tion 1125(c)(2)(A), shall be eligible for assist22 ance in an amount that does not exceed 50 per23 cent;
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1 of the interest costs applicable to any local bond

2 issued to finance an activity described in section

3 12205 with respect to the local area.

4 ‘‘(g) ASSISTANCE TO STATE.—

5 ‘‘(1) IN GENERAL.—If a State issues a bond to

6 finance an activity described in section 12205 with

7 respect to local areas, the State shall be eligible for

8 assistance in an amount that does not exceed the

9 percentage calculated under the formula described in

10 paragraph (2) of the interest costs applicable to the

11 State bond with respect to the local areas.

12 ‘‘(2) FORMULA.—The Secretary shall develop a

13 formula for determining the percentage referred to

14 in paragraph (1). The formula shall specify that the

15 percentage shall consist of a weighted average of the

16 percentages referred to in subparagraphs (A)

17 through (E) of subsection (f)(3) for the local areas

18 involved.

19 ‘‘SEC. 12205. AUTHORIZED ACTIVITIES.

20 ‘‘An activity described in this section is a project of

21 significant size and scope that consists of—

22 ‘‘(1) the repair or upgrading of classrooms or

23 structures related to academic learning, including

24 the repair of leaking roofs, crumbling walls, inad-
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1 equate plumbing, poor ventilation equipment, and in2 adequate heating or light equipment;

3 ‘‘(2) an activity to increase physical safety at

4 the educational facility involved;

5 ‘‘(3) an activity to enhance the educational fa6 cility involved to provide access for students, teach7 ers, and other individuals with disabilities;

8 ‘‘(4) an activity to improve the energy efficiency

9 of the educational facility involved;

10 ‘‘(5) an activity to address environmental haz11 ards at the educational facility involved, such as

12 poor ventilation, indoor air quality, or lighting;

13 ‘‘(6) the provision of basic infrastructure that

14 facilitates educational technology, such as commu15 nications outlets, electrical systems, power outlets, or

16 a communication closet;

17 ‘‘(7) the construction of new schools to meet

18 the needs imposed by enrollment growth;

19 ‘‘(8) additional construction for existing schools

20 to meet needs imposed by overcrowding; and

21 ‘‘(9) any other activity the Secretary determines

22 achieves the purpose of this title.

23 ‘‘SEC. 12206. STATE GRANT WAIVERS.

24 ‘‘(a) WAIVER FOR STATE ISSUANCE OF BOND.—
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1 ‘‘(1) IN GENERAL.—A State that issues a bond

2 described in section 12204(b)(1) with respect to a

3 local area may request that the Secretary waive the

4 limits described in section 12204(f)(3) for the local

5 area, in calculating the amount of assistance the

6 State may receive under section 12204(g). The State

7 may request the waiver only if no local entity is able,

8 for one of the reasons described in subparagraphs

9 (A) through (F) of paragraph (2), to issue bonds on

10 behalf of the local area. Under such a waiver, the

11 Secretary may permit the State to use amounts re12 ceived through a grant made under section

13 12202(a)(2) to pay for not more than 80 percent of

14 the interest costs applicable to the State bond with

15 respect to the local area.

16 ‘‘(2) DEMONSTRATION BY STATE.—To be eligi17 ble to receive a waiver under this subsection, a State

18 shall demonstrate to the satisfaction of the Secretary

19 that—

20 ‘‘(A) the local bond authority serving the

21 local area has reached a limit on its borrowing

22 authority as a result of a debt ceiling or prop23 erty tax cap;
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1 ‘‘(B) the local area has a high percentage

2 of low-income residents, or an unusually high

3 property tax rate;

4 ‘‘(C) the demographic composition of the

5 local area will not support additional school

6 spending;

7 ‘‘(D) the local bond authority has a history

8 of failed attempts to pass bond referenda;

9 ‘‘(E) the local area contains a significant

10 percentage of Federally-owned land that is not

11 subject to local taxation; or

12 ‘‘(F) for another reason, no local entity is

13 able to issue bonds on behalf of the local area.

14 ‘‘(b) WAIVER FOR OTHER FINANCING SOURCES.—

15 ‘‘(1) IN GENERAL.—A State may request that

16 the Secretary waive the use requirements of section

17 12204(b) for a local bond authority to permit the

18 State to provide assistance to the local bond author19 ity to finance construction or renovation by means

20 other than through the issuance of bonds.

21 ‘‘(2) USE OF FUNDS.—A State that receives a

22 waiver granted under this subsection may provide

23 assistance to a local bond authority in accordance

24 with the criteria described in section 12204(f)(2) to

25 enable the local bond authority to repay the costs in-
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1 curred by the local bond authority in financing an

2 activity described in section 12205. The local bond

3 authority shall be eligible to receive the amount of

4 such assistance that the Secretary estimates the

5 local bond authority would be eligible to receive

6 under section 12204(f)(3) if the construction or ren7 ovation were financed through the issuance of a

8 bond.

9 ‘‘(3) MATCHING REQUIREMENT.—The State

10 shall make available to the local bond authority (di11 rectly or through donations from public or private

12 entities) non-Federal contributions in an amount

13 equal to not less than $1 for every $1 of Federal

14 funds provided to the local bond authority through

15 the grant.

16 ‘‘(c) WAIVER FOR OTHER USES.—

17 ‘‘(1) IN GENERAL.—A State may request that

18 the Secretary waive the use requirements of section

19 12204(b) for a State to permit the State to carry

20 out activities that achieve the purpose of this title.

21 ‘‘(2) DEMONSTRATION BY STATE.—To be eligi22 ble to receive a waiver under this subsection, a State

23 shall demonstrate to the satisfaction of the Secretary

24 that the use of assistance provided under the

25 waiver—
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1 ‘‘(A) will result in an equal or greater

2 amount of construction or renovation of edu3 cational facilities than the provision of assist4 ance to defray the interest costs applicable to a

5 bond for such construction or renovation; and

6 ‘‘(B) will be used to fund activities that

7 are effective in carrying out the activities de8 scribed in section 12205, such as—

9 ‘‘(i) the capitalization of a revolving

10 loan fund for such construction or renova11 tion;

12 ‘‘(ii) the use of funds for reinsurance

13 or guarantees with respect to the financing

14 of such construction or renovation;

15 ‘‘(iii) the creation of a mechanism to

16 leverage private sector resources for such

17 construction or renovation;

18 ‘‘(iv) the capitalization of authorities

19 similar to State Infrastructure Banks to

20 leverage additional funds for such con21 struction or renovation; or

22 ‘‘(v) any other activity the Secretary

23 determines achieves the purpose of this

24 title.

25 ‘‘(d) LOCAL BOND AUTHORITY WAIVER.—
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1 ‘‘(1) IN GENERAL.—A local bond authority may

2 request the Secretary waive the use requirements of

3 section 12203(b) for a local head authority to permit

4 the authority to finance construction or renovation

5 of educational facilities by means other than through

6 use of bonds.

7 ‘‘(2) DEMONSTRATION.—To be eligible to re8 ceive a waiver under this subsection, a local bond

9 authority shall demonstrate that the amounts made

10 available through a grant under the waiver will re11 sult in an equal or greater amount of construction

12 or renovation of educational facilities than the provi13 sion of assistance to defray the interest costs appli14 cable to a bond for such construction or renovation.

15 ‘‘(e) REQUEST FOR WAIVER.—A State or local bond

16 authority that desires a waiver under this section shall

17 submit a waiver request to the Secretary that—

18 ‘‘(1) identifies the type of waiver requested;

19 ‘‘(2) with respect to a waiver described in sub20 section (a), (c), or (d), makes the demonstration de21 scribed in subsection (a)(2), (c)(2), or (d)(2), respec22 tively;

23 ‘‘(3) describes the manner in which the waiver

24 will further the purpose of this title; and
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1 ‘‘(4) describes the use of assistance provided

2 under such waiver.

3 ‘‘(f) ACTION BY SECRETARY.—The Secretary shall

4 make a determination with respect to a request submitted

5 under subsection (d) not later than 90 days after the date

6 on which such request was submitted.

7 ‘‘(g) GENERAL REQUIREMENTS.—

8 ‘‘(1) STATES.—In the case of a waiver request

9 submitted by a State under this section, the State

10 shall—

11 ‘‘(A) provide all interested local edu12 cational agencies in the State with notice and a

13 reasonable opportunity to comment on the re14 quest;

15 ‘‘(B) submit the comments to the Sec16 retary; and

17 ‘‘(C) provide notice and information to the

18 public regarding the waiver request in the man19 ner that the applying State customarily pro20 vides similar notices and information to the

21 public.

22 ‘‘(2) LOCAL BOND AUTHORITIES.—In the case

23 of a waiver request submitted by a local bond au24 thority under this section, the local bond authority

25 shall—
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1 ‘‘(A) provide the affected local educational

2 agency with notice and a reasonable oppor3 tunity to comment on the request;

4 ‘‘(B) submit the comments to the Sec5 retary; and

6 ‘‘(C) provide notice and information to the

7 public regarding the waiver request in the man8 ner that the applying local bond authority cus9 tomarily provides similar notices and informa10 tion to the public.

11 ‘‘SEC. 12207. GENERAL PROVISIONS.

12 ‘‘(a) FAILURE TO ISSUE BONDS.—

13 ‘‘(1) STATES.—If a State that receives assist14 ance under this part fails to issue a bond for which

15 the assistance is provided, the amount of such as16 sistance shall be made available to the State as pro17 vided for under section 12204, during the first fiscal

18 year following the date of repayment.

19 ‘‘(2) LOCAL BOND AUTHORITIES AND LOCAL

20 AREAS.—If a local bond authority that receives as21 sistance under this part fails to issue a bond, or a

22 local area that receives such assistance fails to be23 come the beneficiary of a bond, for which the assist24 ance is provided, the amount of such assistance—
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1 ‘‘(A) in the case of assistance received

2 under section 12202(a)(1), shall be repaid to

3 the Secretary and made available as provided

4 for under section 12203; and

5 ‘‘(B) in the case of assistance received

6 under section 12202(a)(2), shall be repaid to

7 the State and made available as provided for

8 under section 12204.

9 ‘‘(b) LIABILITY OF THE FEDERAL GOVERNMENT.—

10 The Secretary shall not be liable for any debt incurred

11 by a State or local bond authority for which assistance

12 is provided under this part. If such assistance is used by

13 a local educational agency to subsidize a debt other than

14 the issuance of a bond, the Secretary shall have no obliga15 tion to repay the lending institution to whom the debt is

16 owed if the local educational agency defaults.

17 ‘‘SEC. 12208. FAIR WAGES.

18 ‘‘The provisions of section 12107 shall apply with re19 spect to all laborers and mechanics employed by contrac20 tors or subcontractors in the performance of any contract

21 and subcontract for the repair, renovation, alteration, or

22 construction, including painting and decorating, of any

23 building or work that is financed in whole or in part using

24 assistance provided under this part.
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1 ‘‘SEC. 12209. REPORT.

2 ‘‘From amounts reserved under section 12202(b)(3)

3 for each fiscal year the Secretary shall—

4 ‘‘(1) collect such data as the Secretary deter5 mines necessary at the school, local, and State levels;

6 ‘‘(2) conduct studies and evaluations, including

7 national studies and evaluations, in order to—

8 ‘‘(A) monitor the progress of activities sup9 ported with funds provided under this part; and

10 ‘‘(B) evaluate the state of United States

11 educational facilities; and

12 ‘‘(3) report to the appropriate committees of

13 Congress regarding the findings of the studies and

14 evaluations described in paragraph (2).

15 ‘‘SEC. 12210. FUNDING.

16 ‘‘(a) IN GENERAL.—There are authorized to be ap17 propriated $5,000,000,000 for fiscal year 2000 to carry

18 out this part.

19 ‘‘(b) ENTITLEMENT.—Subject to subsection (a), each

20 State or local bond authority awarded a grant under this

21 part shall be entitled to payments under the grant.

22 ‘‘(c) AVAILABILITY.—Any amounts appropriated pur23 suant to the authority of subsection (a) shall remain avail24 able until expended.’’.
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1 SEC. 102. CONFORMING AMENDMENTS.

2 (a) CROSS REFERENCES.—Part A of title XII of the

3 Elementary and Secondary Education Act of 1965 (as re4 designated by section 102(3)) is amended—

5 (1) in section 12102(a) (as redesignated by sec6 tion 102(2))—

7 (A) in paragraph (1)—

8 (i) by striking ‘‘12013’’ and inserting

9 ‘‘12111’’;

10 (ii) by striking ‘‘12005’’ and inserting

11 ‘‘12103’’; and

12 (iii) by striking ‘‘12007’’ and insert13 ing ‘‘12105’’; and

14 (B) in paragraph (2), by striking ‘‘12013’’

15 and inserting ‘‘12111’’; and

16 (2) in section 12110(3)(C) (as redesignated by

17 section 102(2)), by striking ‘‘12006’’ and inserting

18 ‘‘12104’’.

19 (b) CONFORMING AMENDMENTS.—Part A of title XII

20 of the Elementary and Secondary Education Act of 1965

21 (as redesignated by section 202(3)) (20 U.S.C. 8501 et

22 seq.) is further amended—

23 (1) in section 12101 (as redesignated by section

24 102(2)), by striking ‘‘This title’’ and inserting ‘‘This

25 part’’; and
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1 (2) in sections 12102(a)(2), 12102(b)(1),

2 12103(a), 12103(b), 12103(b)(2), 12103(c),

3 12103(d), 12104(a), 12104(b)(2), 12104(b)(3),

4 12104(b)(4), 12104(b)(6), 12104(b)(7), 12105(a),

5 12105(b), 12106(a), 12106(b), 12106(c),

6 12106(c)(1), 12106(c)(7), 12106(e), 12107,

7 12108(a)(1), 12108(a)(2), 12108(b)(1),

8 12108(b)(2), 12108(b)(3), 12108(b)(4),

9 12109(2)(A), and 12110 (as redesignated by section

10 102(2)), by striking ‘‘this title’’ each place it ap11 pears and inserting ‘‘this part’’.

12 TITLE II—SCHOLARSHIPS

13 SEC. 201. DEFINITIONS.

14 Section 6003 of the Elementary and Secondary Edu15 cation Act of 1965 is amended—

16 (1) in the section heading by striking ‘‘defini17 tion’’ and inserting ‘‘definitions’’;

18 (2) in the matter preceding subparagraph (A)—

19 (A) by striking ‘‘(1)’’, ‘‘(2)’’, and ‘‘(3)’’;

20 (B) by striking ‘‘title the term’’ and insert21 ing the following: ‘‘title—

22 ‘‘(1) the term’’;

23 (3) by striking the period at the end; and

24 (4) by adding at the end the following:
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1 ‘‘(2) the term ‘poverty line’ means the poverty

2 line (as defined by the Office of Management and

3 Budget, and revised annually in accordance with sec4 tion 673(2) of the Community Services Block Grant

5 Act (42 U.S.C. 9902(2)) applicable to a family of

6 the size involved; and

7 ‘‘(3) the term ‘voluntary public and private pa8 rental choice program’ means a program that meets

9 the requirements of section 6301(b)(9), is authorized

10 by State law, and includes 1 or more private schools

11 to allow low-income parents to choose the appro12 priate school for their children.’’.

13 SEC. 202. ALLOCATION TO LOCAL EDUCATIONAL AGEN14 CIES.

15 Section 6102(a) of the Elementary and Secondary

16 Education Act of 1965 is amended to read as follows:

17 ‘‘(a) DISTRIBUTION RULE.—

18 ‘‘(1) IN GENERAL.—Except as provided in para19 graph (2), from the sums made available each year

20 to carry out this title, the State educational agency

21 shall distribute not less than 90 percent to local edu22 cational agencies within such State according to the

23 relative enrollments in public and private, nonprofit

24 schools within the school districts of such agencies,

25 adjusted, in accordance with criteria approved by the
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1 Secretary, to provide higher per pupil allocations to

2 local educational agencies which have the greatest

3 numbers or percentages of children whose education

4 imposes a higher than average cost per child, such

5 as—

6 ‘‘(A) children living in areas with high con7 centrations of low-income families;

8 ‘‘(B) children from low-income families;

9 and

10 ‘‘(C) children living in sparsely populated

11 areas.

12 ‘‘(2) EXCEPTION.—A State that has enacted or

13 will enact a law that establishes a voluntary public

14 and private parental choice program and that com15 plies with the provisions of section 6301(b)(9) may

16 reserve an additional 15 percent from the sums

17 made available each year to carry out this title if the

18 additional amount reserved is used exclusively for

19 voluntary public and private parental choice pro20 grams.’’.

21 SEC. 203. USES OF FUNDS.

22 (a) STATE USES OF FUNDS.—Section 6201(a)(1) of

23 the Elementary and Secondary Education Act of 1965 is

24 amended—
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1 (1) in subparagraph (C), by striking ‘‘and’’

2 after the semicolon; and

3 (2) by inserting after subparagraph (C) the fol4 lowing:

5 ‘‘(D) establishing voluntary public and pri6 vate parental choice programs in accordance

7 with section 6301(b)(9); and’’.

8 (b) LOCAL USES OF FUNDS.—Section 6301(b) of the

9 Elementary and Secondary Education Act of 1965 is

10 amended—

11 (1) in paragraph (8), by striking ‘‘and’’ after

12 the semicolon;

13 (2) in paragraph (9), by striking the period and

14 inserting ‘‘; and’’; and

15 (3) by inserting after paragraph (9) the follow16 ing:

17 ‘‘(10) voluntary public and private parental

18 choice programs that—

19 ‘‘(A) are located in an area that has the

20 greatest numbers or percentages of children—

21 ‘‘(i) living in areas with a high con22 centration of low-income families;

23 ‘‘(ii) from low-income families; or

24 ‘‘(iii) living in sparsely populated

25 areas;
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1 ‘‘(B) ensure that participation in such a

2 voluntary public and private parental choice

3 program is limited to families whose family in4 come does not exceed 185 percent of the pov5 erty line;

6 ‘‘(C) ensure that—

7 ‘‘(i) the maximum amount of a vol8 untary public and private parental choice

9 scholarship does not exceed the per pupil

10 expenditure of the local educational agency

11 in which an applicant for a voluntary pub12 lic and private parental choice scholarship

13 resides; and

14 ‘‘(ii) the minimum amount of a vol15 untary public and private parental choice

16 scholarship is not less than 60 percent of

17 the per pupil expenditure of the local edu18 cational agency in which an applicant for

19 a voluntary public and private parental

20 choice scholarship resides or the cost of

21 tuition at a private school, whichever is

22 less;

23 ‘‘(D) ensure that for a private school that

24 chooses to participate in a voluntary public and

25 private parental choice program—
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1 ‘‘(i) such a school is permitted to im2 pose the same academic requirements for

3 all students, including students selected for

4 a scholarship as provided under this para5 graph;

6 ‘‘(ii) receipt of funds under this title

7 is not conditioned with requirements or

8 regulations that preclude the use of such

9 funds for sectarian educational purposes or

10 require removal of religious art, icons,

11 scripture, or other symbols; and

12 ‘‘(iii) such a school is in compliance

13 with all State requirements applicable to

14 the operation of a private school that are

15 in effect in the year preceding the date of

16 the enactment of the Renewing America’s

17 Schools Act;

18 ‘‘(E) may allow State, local, and private

19 funds to be used for voluntary public and pri20 vate parental choice programs; and

21 ‘‘(F) ensure priority for students who were

22 enrolled in a public school in the school year

23 preceding the school year in which a voluntary

24 public and private parental choice school begins

25 operation.’’.
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1 SEC. 204. EVALUATION.

2 Part D of title VI of the Elementary and Secondary

3 Education Act of 1965 is amended—

4 (1) by adding at the end of section 6402 the

5 following new subsection:

6 ‘‘(j) APPLICATION.—This section shall not apply to

7 funds that a State or local educational agency uses to es8 tablish a voluntary public and private parental choice pro9 gram in accordance with section 6301(b)(9).’’; and

10 (2) by adding at the end of such part the fol11 lowing new sections:

12 ‘‘SEC. 6404. EVALUATION.

13 ‘‘(a) ANNUAL EVALUATION.—

14 ‘‘(1) CONTRACT.—The Comptroller General of

15 the United States shall enter into a contract, with

16 an evaluating agency that has demonstrated experi17 ence in conducting evaluations, for the conduct of an

18 ongoing rigorous evaluation of the programs estab19 lished under section 6301(b)(9).

20 ‘‘(2) ANNUAL EVALUATION REQUIREMENT.—

21 The contract described in paragraph (1) shall re22 quire the evaluating agency entering into such con23 tract to evaluate annually each program established

24 under section 6301(b)(9) in accordance with the

25 evaluation criteria described in subsection (b).
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1 ‘‘(3) TRANSMISSION.—The contract described

2 in paragraph (1) shall require the evaluating agency

3 entering into such contract to transmit to the Comp4 troller General of the United States the findings of

5 each annual evaluation under paragraph (1).

6 ‘‘(b) EVALUATION CRITERIA.—The Comptroller Gen7 eral of the United States, in consultation with the Sec8 retary, shall establish minimum criteria for evaluating

9 each program established under section 6301(b)(9). Such

10 criteria shall provide for—

11 ‘‘(1) a description of the implementation of

12 each program established under section 6301(b)(9)

13 and the program’s effects on all participants,

14 schools, and communities in the program area, with

15 particular attention given to the effect of parent par16 ticipation in the life of the school and the level of

17 parental satisfaction with the program; and

18 ‘‘(2) a comparison of the educational achieve19 ment of all students in the program area, including

20 a comparison between—

21 ‘‘(A) students receiving a voluntary public

22 and private parental choice scholarships under

23 section 6301(b)(9); and
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1 ‘‘(B) students not receiving a voluntary

2 public and private parental choice scholarships

3 under such section.

4 ‘‘(c) EVALUATION FUNDS.—Pursuant to the author5 ity provided under section 14701, the Secretary shall re6 serve not more than 0.50 percent of the amount of funds

7 made available under section 6002 to carry out this sec8 tion.

9 ‘‘SEC. 6405. APPLICABILITY.

10 ‘‘(a) NOT SCHOOL AID.—Subject to subsection (b),

11 funds used under this title to establish a voluntary public

12 and private parental choice program shall be considered

13 assistance to the student and shall not be considered as

14 assistance to any school that chooses to participate in such

15 program.

16 ‘‘(b) NO FEDERAL CONTROL.—The Secretary is not

17 permitted to exercise any direction, supervision, or control

18 over curricula, program of instruction, administration, or

19 personnel of any school that chooses to participate in a

20 voluntary public and private choice program established

21 under 6309(b)(9).’’.
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1 TITLE III—A+ ACCOUNTS FOR

2 PUBLIC AND PRIVATE SCHOOLS

3 SEC. 301. SHORT TITLE.

4 This title may be cited as the ‘‘A+ Accounts for Pub5 lic and Private Schools Act’’.

6 SEC. 302. MODIFICATIONS TO EDUCATION INDIVIDUAL RE7 TIREMENT ACCOUNTS.

8 (a) TAX-FREE EXPENDITURES FOR ELEMENTARY

9 AND SECONDARY SCHOOL EXPENSES.—

10 (1) IN GENERAL.—Section 530(b)(2) of the In11 ternal Revenue Code of 1986 is amended to read as

12 follows:

13 ‘‘(2) QUALIFIED EDUCATION EXPENSES.—

14 ‘‘(A) IN GENERAL.—The term ‘qualified

15 education expenses’ means—

16 ‘‘(i) qualified higher education ex17 penses (as defined in section 529(e)(3)),

18 and

19 ‘‘(ii) qualified elementary and second20 ary education expenses (as defined in para21 graph (4)).

22 Such expenses shall be reduced as provided in

23 section 25A(g)(2) but only with respect to

24 amounts in the account which are attributable

25 to contributions for any taxable year ending be-
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1 fore January 1, 2004, and earnings on such

2 contributions.

3 ‘‘(B) QUALIFIED STATE TUITION PRO4 GRAMS.—Such term shall include amounts paid

5 or incurred to purchase tuition credits or cer6 tificates, or to make contributions to an ac7 count, under a qualified State tuition program

8 (as defined in section 529(b)) for the benefit of

9 the beneficiary of the account.’’.

10 (2) QUALIFIED ELEMENTARY AND SECONDARY

11 EDUCATION EXPENSES.—Section 530(b) of such

12 Code is amended by adding at the end the following

13 new paragraph:

14 ‘‘(4) QUALIFIED ELEMENTARY AND SECONDARY

15 EDUCATION EXPENSES.—

16 ‘‘(A) IN GENERAL.—The term ‘qualified el17 ementary and secondary education expenses’

18 means tuition, fees, tutoring, special needs serv19 ices, books, supplies, computer equipment (in20 cluding related software and services) and other

21 equipment, transportation, and supplementary

22 expenses required for the enrollment or attend23 ance of the designated beneficiary of the trust

24 at a public, private, or religious school.
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1 ‘‘(B) SPECIAL RULE FOR

2 HOMESCHOOLING.—Such term shall include ex3 penses described in subparagraph (A) required

4 for education provided for homeschooling if the

5 requirements of any applicable State or local

6 law are met with respect to such education.

7 ‘‘(C) SCHOOL.—The term ‘school’ means

8 any school which provides elementary education

9 or secondary education (through grade 12), as

10 determined under State law.’’.

11 (3) CONFORMING AMENDMENTS.—Subsections

12 (b)(1) and (d)(2) of section 530 of such Code are

13 each amended by striking ‘‘higher’’ each place it ap14 pears in the text and heading thereof.

15 (b) TEMPORARY INCREASE IN MAXIMUM ANNUAL

16 CONTRIBUTIONS.—

17 (1) IN GENERAL.—Section 530(b)(1)(A)(iii) of

18 such Code is amended by striking ‘‘$500’’ and in19 serting ‘‘the contribution limit for such taxable

20 year’’.

21 (2) CONTRIBUTION LIMIT.—Section 530(b) of

22 such Code, amended by subsection (a)(2) of this sec23 tion, is amended by adding at the end the following

24 new paragraph:
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1 ‘‘(5) CONTRIBUTION LIMIT.—The term ‘con2 tribution limit’ means $2,500 ($500 in the case of

3 any taxable year ending after December 31, 2003).’’.

4 (3) CONFORMING AMENDMENT.—Section

5 4973(e)(1)(A) of such Code is amended by striking

6 ‘‘$500’’ and inserting ‘‘the contribution limit (as de7 fined in section 530(b)(4)) for such taxable year’’.

8 (c) WAIVER OF AGE LIMITATIONS FOR CHILDREN

9 WITH SPECIAL NEEDS.—Paragraph (1) of section 530(b)

10 of such Code is amended by adding at the end the follow11 ing flush sentence:

12 ‘‘The age limitations in the preceding sentence shall

13 not apply to any designated beneficiary with special

14 needs (as determined under regulations prescribed

15 by the Secretary).’’.

16 (d) CORPORATIONS PERMITTED TO CONTRIBUTE TO

17 ACCOUNTS.—Paragraph (1) of section 530(c) of such

18 Code is amended by striking ‘‘The maximum amount

19 which a contributor’’ and inserting ‘‘In the case of a con20 tributor who is an individual, the maximum amount the

21 contributor’’.

22 (e) EFFECTIVE DATE.—The amendments made by

23 this section shall apply to taxable years beginning after

24 December 31, 1998.

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