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[Congressional Bills 106th Congress]
[From the U.S. Government Publishing Office]
[S. 1134 Engrossed in Senate (ES)]

  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
106th CONGRESS
  2d Session
                                S. 1134

_______________________________________________________________________

                                 AN ACT

 
     To amend the Internal Revenue Code of 1986 to allow tax-free 
    expenditures from education individual retirement accounts for 
   elementary and secondary school expenses, to increase the maximum 
    annual amount of contributions to such accounts, and for other 
                               purposes.

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

SECTION 1. SHORT TITLE; AMENDMENT OF 1986 CODE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Affordable 
Education Act of 2000''.
    (b) Amendment of 1986 Code.--Except as otherwise expressly 
provided, whenever in this Act an amendment or repeal is expressed in 
terms of an amendment to, or repeal of, a section or other provision, 
the reference shall be considered to be made to a section or other 
provision of the Internal Revenue Code of 1986.
    (c) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title; amendment of 1986 Code; table of contents.
                 TITLE I--EDUCATION SAVINGS INCENTIVES

Sec. 101. Modifications to education individual retirement accounts.
Sec. 102. Modifications to qualified tuition programs.
                    TITLE II--EDUCATIONAL ASSISTANCE

Sec. 201. Permanent extension of exclusion for employer-provided 
                            educational assistance.
Sec. 202. Elimination of 60-month limit on student loan interest 
                            deduction.
Sec. 203. Exclusion of certain amounts received under the National 
                            Health Service Corps Scholarship Program 
                            and the F. Edward Hebert Armed Forces 
                            Health Professions Scholarship and 
                            Financial Assistance Program.
Sec. 204. 2-percent floor on miscellaneous itemized deductions not to 
                            apply to qualified professional development 
                            expenses of elementary and secondary school 
                            teachers.
Sec. 205. Credit to elementary and secondary school teachers who 
                            provide classroom materials.
Sec. 206. Exclusion of national service educational awards.
Sec. 207. Elimination of marriage penalty in phaseout of education loan 
                            interest deduction.
  TITLE III--LIBERALIZATION OF TAX-EXEMPT FINANCING RULES FOR PUBLIC 
                          SCHOOL CONSTRUCTION

Sec. 301. Additional increase in arbitrage rebate exception for 
                            governmental bonds used to finance 
                            educational facilities.
Sec. 302. Treatment of qualified public educational facility bonds as 
                            exempt facility bonds.
Sec. 303. Federal guarantee of school construction bonds by Federal 
                            Housing Finance Board.
Sec. 304. Disclosure of fire safety standards and measures with respect 
                            to campus buildings.
                    TITLE IV--TRANSITION TO TEACHING

Sec. 401. Short title.
Sec. 402. Findings.
Sec. 403. Purpose.
Sec. 404. Program authorized.
Sec. 405. Application.
Sec. 406. Uses of funds and period of service.
Sec. 407. Equitable distribution.
Sec. 408. Definitions.
                   TITLE V--MISCELLANEOUS PROVISIONS

Sec. 501. Expansion of deduction for computer donations to schools.
Sec. 502. Credit for computer donations to schools and senior centers.
Sec. 503. Report to Congress regarding extent and severity of child 
                            poverty.
Sec. 504. Careers to classrooms.
Sec. 505. Pesticide application in schools.
Sec. 506. Sense of the Senate regarding a safe learning environment.
Sec. 507. Reduction in school violence.

                 TITLE I--EDUCATION SAVINGS INCENTIVES

SEC. 101. MODIFICATIONS TO EDUCATION INDIVIDUAL RETIREMENT ACCOUNTS.

    (a) Maximum Annual Contributions.--
            (1) In general.--Section 530(b)(1)(A)(iii) (defining 
        education individual retirement account) is amended by striking 
        ``$500'' and inserting ``$2,000''.
            (2) Conforming amendment.--Section 4973(e)(1)(A) is amended 
        by striking ``$500'' and inserting ``$2,000''.
            (3) Elimination of the marriage penalty in the reduction in 
        permitted contributions.--Section 530(c)(1) (relating to 
        reduction in permitted contributions based on adjusted gross 
        income) is amended--
                    (A) by striking ``$150,000'' in subparagraph 
                (A)(ii) and inserting ``$190,000'', and
                    (B) by striking ``$10,000'' in subparagraph (B) and 
                inserting ``$30,000''.
    (b) Tax-Free Expenditures for Elementary and Secondary School 
Expenses.--
            (1) In general.--Section 530(b)(2) (defining qualified 
        higher education expenses) is amended to read as follows:
            ``(2) Qualified education expenses.--
                    ``(A) In general.--The term `qualified education 
                expenses' means--
                            ``(i) qualified higher education expenses 
                        (as defined in section 529(e)(3)), and
                            ``(ii) qualified elementary and secondary 
                        education expenses (as defined in paragraph 
                        (4)).
                    ``(B) Qualified state tuition programs.--Such term 
                shall include any contribution to a qualified State 
                tuition program (as defined in section 529(b)) on 
                behalf of the designated beneficiary (as defined in 
                section 529(e)(1)); but there shall be no increase in 
                the investment in the contract for purposes of applying 
                section 72 by reason of any portion of such 
                contribution which is not includible in gross income by 
                reason of subsection (d)(2).''.
            (2) Qualified elementary and secondary education 
        expenses.--Section 530(b) (relating to definitions and special 
        rules) is amended by adding at the end the following new 
        paragraph:
            ``(4) Qualified elementary and secondary education 
        expenses.--
                    ``(A) In general.--The term `qualified elementary 
                and secondary education expenses' means--
                            ``(i) expenses for tuition, fees, academic 
                        tutoring, special needs services, books, 
                        supplies, computer equipment (including related 
                        software and services), and other equipment 
                        which are incurred in connection with the 
                        enrollment or attendance of the designated 
                        beneficiary of the trust as an elementary or 
                        secondary school student at a public, private, 
                        or religious school, and
                            ``(ii) expenses for room and board, 
                        uniforms, transportation, and supplementary 
                        items and services (including extended day 
                        programs) which are required or provided by a 
                        public, private, or religious school in 
                        connection with such enrollment or attendance.
                    ``(B) Special rule for homeschooling.--Such term 
                shall include expenses described in subparagraph (A)(i) 
                in connection with education provided by homeschooling 
                if the homeschool operates as a private school or a 
                homeschool under State law.
                    ``(C) School.--The term `school' means any school 
                which provides elementary education or secondary 
                education (kindergarten through grade 12), as 
                determined under State law.''.
            (3) Conforming amendments.--Section 530 is amended--
                    (A) by striking ``higher'' each place it appears in 
                subsections (b)(1) and (d)(2), and
                    (B) by striking ``higher'' in the heading for 
                subsection (d)(2).
    (c) Waiver of Age Limitations for Children With Special Needs.--
Section 530(b)(1) (defining education individual retirement account) is 
amended by adding at the end the following flush sentence:
        ``The age limitations in subparagraphs (A)(ii) and (E) and 
        paragraphs (5) and (6) of subsection (d) shall not apply to any 
        designated beneficiary with special needs (as determined under 
        regulations prescribed by the Secretary).''.
    (d) Entities Permitted To Contribute to Accounts.--Section 
530(c)(1) (relating to reduction in permitted contributions based on 
adjusted gross income) is amended by striking ``The maximum amount 
which a contributor'' and inserting ``In the case of a contributor who 
is an individual, the maximum amount the contributor''.
    (e) Time When Contributions Deemed Made.--
            (1) In general.--Section 530(b) (relating to definitions 
        and special rules), as amended by subsection (b)(2), is amended 
        by adding at the end the following new paragraph:
            ``(5) Time when contributions deemed made.--An individual 
        shall be deemed to have made a contribution to an education 
        individual retirement account on the last day of the preceding 
        taxable year if the contribution is made on account of such 
        taxable year and is made not later than the time prescribed by 
        law for filing the return for such taxable year (not including 
        extensions thereof).''.
            (2) Extension of time to return excess contributions.--
        Subparagraph (C) of section 530(d)(4) (relating to additional 
        tax for distributions not used for educational expenses) is 
        amended--
                    (A) by striking clause (i) and inserting the 
                following new clause:
                            ``(i) such distribution is made before the 
                        1st day of the 6th month of the taxable year 
                        following the taxable year, and'', and
                    (B) by striking ``due date of return'' in the 
                heading and inserting ``certain date''.
    (f) Coordination With Hope and Lifetime Learning Credits and 
Qualified Tuition Programs.--
            (1) In general.--Section 530(d)(2)(C) is amended to read as 
        follows:
                    ``(C) Coordination with hope and lifetime learning 
                credits and qualified tuition programs.--For purposes 
                of subparagraph (A).
                            ``(i) Credit coordination.--The total 
                        amount of qualified higher education expenses 
                        with respect to an individual for the taxable 
                        year shall be reduced--
                                    ``(I) as provided in section 
                                25A(g)(2), and
                                    ``(II) by the amount of such 
                                expenses which were taken into account 
                                in determining the credit allowed to 
                                the taxpayer or any other person under 
                                section 25A.
                            ``(ii) Coordination with qualified tuition 
                        programs.--If, with respect to an individual 
                        for any taxable year--
                                    ``(I) the aggregate distributions 
                                during such year to which subparagraph 
                                (A) and section 529(c)(3)(B) apply, 
                                exceed
                                    ``(II) the total amount of 
                                qualified higher education expenses 
                                (after the application of clause (i)) 
                                for such year,
                        the taxpayer shall allocate such expenses among 
                        such distributions for purposes of determining 
                        the amount of the exclusion under subparagraph 
                        (A) and section 529(c)(3)(B).''.
            (2) Conforming amendments.--
                    (A) Subsection (e) of section 25A is amended to 
                read as follows:
    ``(e) Election Not To Have Section Apply.--A taxpayer may elect not 
to have this section apply with respect to the qualified tuition and 
related expenses of an individual for any taxable year.''.
                    (B) Section 135(d)(2)(A) is amended by striking 
                ``allowable'' and inserting ``allowed''.
                    (C) Section 530(d)(2)(D) is amended--
                            (i) by striking ``or credit'', and
                            (ii) by striking ``credit or'' in the 
                        heading.
                    (D) Section 4973(e)(1) is amended by adding ``and'' 
                at the end of subparagraph (A), by striking 
                subparagraph (B), and by redesignating subparagraph (C) 
                as subparagraph (B).
    (g) Renaming Education Individual Retirement Accounts as Education 
Savings Accounts.--
            (1) In general.--
                    (A) Section 530 (as amended by the preceding 
                provisions of this section) is amended by striking 
                ``education individual retirement account'' each place 
                it appears and inserting ``education savings account''.
                    (B) The heading for paragraph (1) of section 530(b) 
                is amended by striking ``Education individual 
                retirement account'' and inserting ``Education savings 
                account''.
                    (C) The heading for section 530 is amended to read 
                as follows:

``SEC. 530. EDUCATION SAVINGS ACCOUNTS.''.

                    (D) The item in the table of contents for part VII 
                of subchapter F of chapter 1 relating to section 530 is 
                amended to read as follows:

                              ``Sec. 530. Education savings 
                                        accounts.''.
            (2) Conforming amendments.--
                    (A) The following provisions are each amended by 
                striking ``education individual retirement'' each place 
                it appears and inserting ``education savings'':
                            (i) Section 25A(e)(2).
                            (ii) Section 26(b)(2)(E).
                            (iii) Section 72(e)(9).
                            (iv) Section 135(c)(2)(C).
                            (v) Subsections (a) and (e) of section 
                        4973.
                            (vi) Subsections (c) and (e) of section 
                        4975.
                            (vii) Section 6693(a)(2)(D).
                    (B) The headings for each of the following 
                provisions are amended by striking ``education 
                individual retirement accounts'' each place it appears 
                and inserting ``education savings accounts''.
                            (i) Section 72(e)(9).
                            (ii) Section 135(c)(2)(C).
                            (iii) Section 4973(e).
                            (iv) Section 4975(c)(5).
    (h) Effective Dates.--
            (1) In general.--Except as provided in paragraph (2), the 
        amendments made by this section shall apply to taxable years 
        beginning after December 31, 2000.
            (2) Subsection (g).--The amendments made by subsection (g) 
        shall take effect on the date of the enactment of this Act.

SEC. 102. MODIFICATIONS TO QUALIFIED TUITION PROGRAMS.

    (a) Eligible Educational Institutions Permitted To Maintain 
Qualified Tuition Programs.--
          (1) In general.--Section 529(b)(1) (defining qualified State 
        tuition program) is amended by inserting ``or by 1 or more 
        eligible educational institutions'' after ``maintained by a 
        State or agency or instrumentality thereof''.
            (2) Private qualified tuition programs limited to benefit 
        plans.--Clause (ii) of section 529(b)(1)(A) is amended by 
        inserting ``in the case of a program established and maintained 
        by a State or agency or instrumentality thereof,'' before ``may 
        make''.
            (3) Conforming amendments.--
                    (A) Sections 72(e)(9), 135(c)(2)(C), 135(d)(1)(D), 
                529, 530(b)(2)(B), 4973(e), and 6693(a)(2)(C) are each 
                amended by striking ``qualified State tuition'' each 
                place it appears and inserting ``qualified tuition''.
                    (B) The headings for sections 72(e)(9) and 
                135(c)(2)(C) are each amended by striking ``qualified 
                state tuition'' and inserting ``qualified tuition''.
                    (C) The headings for sections 529(b) and 
                530(b)(2)(B) are each amended by striking ``Qualified 
                state tuition'' and inserting ``Qualified tuition''.
                    (D) The heading for section 529 is amended by 
                striking ``state''.
                    (E) The item relating to section 529 in the table 
                of sections for part VIII of subchapter F of chapter 1 
                is amended by striking ``State''.
    (b) Exclusion From Gross Income of Education Distributions From 
Qualified Tuition Programs.--
            (1) In general.--Section 529(c)(3)(B) (relating to 
        distributions) is amended to read as follows:
                    ``(B) Distributions for qualified higher education 
                expenses.--For purposes of this paragraph--
                            ``(i) In-kind distributions.--No amount 
                        shall be includible in gross income under 
                        subparagraph (A) by reason of a distribution 
                        which consists of providing a benefit to the 
                        distributee which, if paid for by the 
                        distributee, would constitute payment of a 
                        qualified higher education expense.
                            ``(ii) Cash distributions.--In the case of 
                        distributions not described in clause (i), if--
                                    ``(I) such distributions do not 
                                exceed the qualified higher education 
                                expenses (reduced by expenses described 
                                in clause (i)), no amount shall be 
                                includible in gross income, and
                                    ``(II) in any other case, the 
                                amount otherwise includible in gross 
                                income shall be reduced by an amount 
                                which bears the same ratio to such 
                                amount as such expenses bear to such 
                                distributions.
                            ``(iii) Exception for institutional 
                        programs.--In the case of any taxable year 
                        beginning before January 1, 2004, clauses (i) 
                        and (ii) shall not apply with respect to any 
                        distribution during such taxable year under a 
                        qualified tuition program established and 
                        maintained by 1 or more eligible educational 
                        institutions.
                            ``(iv) Treatment as distributions.--Any 
                        benefit furnished to a designated beneficiary 
                        under a qualified tuition program shall be 
                        treated as a distribution to the beneficiary 
                        for purposes of this paragraph.
                            ``(v) Coordination with hope and lifetime 
                        learning credits.--The total amount of 
                        qualified higher education expenses with 
                        respect to an individual for the taxable year 
                        shall be reduced--
                                    ``(I) as provided in section 
                                25A(g)(2), and
                                    ``(II) by the amount of such 
                                expenses which were taken into account 
                                in determining the credit allowed to 
                                the taxpayer or any other person under 
                                section 25A.
                            ``(vi) Coordination with education savings 
                        accounts.--If, with respect to an individual 
                        for any taxable year--
                                    ``(I) the aggregate distributions 
                                to which clauses (i) and (ii) and 
                                section 530(d)(2)(A) apply, exceed
                                    ``(II) the total amount of 
                                qualified higher education expenses 
                                otherwise taken into account under 
                                clauses (i) and (ii) (after the 
                                application of clause (iv)) for such 
                                year,
                        the taxpayer shall allocate such expenses among 
                        such distributions for purposes of determining 
                        the amount of the exclusion under clauses (i) 
                        and (ii) and section 530(d)(2)(A).''.
            (2) Conforming amendments.--
                    (A) Section 135(d)(2)(B) is amended by striking 
                ``section 530(d)(2)'' and inserting ``sections 
                529(c)(3)(B)(i) and 530(d)(2)''.
                    (B) Section 221(e)(2)(A) is amended by inserting 
                ``529,'' after ``135,''.
    (c) Rollover to Different Program for Benefit of Same Designated 
Beneficiary.--Section 529(c)(3)(C) (relating to change in 
beneficiaries) is amended--
            (1) by striking ``transferred to the credit'' in clause (i) 
        and inserting ``transferred--
                                    ``(I) to another qualified tuition 
                                program for the benefit of the 
                                designated beneficiary, or
                                    ``(II) to the credit'',
            (2) by adding at the end the following new clause:
                            ``(iii) Limitation on certain rollovers.--
                        Clause (i)(I) shall only apply to the first 3 
                        transfers with respect to a designated 
                        beneficiary.'', and
            (3) by inserting ``or programs'' after ``beneficiaries'' in 
        the heading.
    (d) Member of Family Includes First Cousin.--Section 529(e)(2) 
(defining member of family) is amended by striking ``and'' at the end 
of subparagraph (B), by striking the period at the end of subparagraph 
(C) and by inserting ``; and'', and by adding at the end the following 
new subparagraph:
                    ``(D) any first cousin of such beneficiary.''.
    (e) Definition of Qualified Higher Education Expenses.--
Subparagraph (A) of section 529(e)(3) (relating to definition of 
qualified higher education expenses) is amended to read as follows:
                    ``(A) In general.--The term `qualified higher 
                education expenses' means--
                            ``(i) tuition and fees required for the 
                        enrollment or attendance of a designated 
                        beneficiary at an eligible educational 
                        institution for courses of instruction of such 
                        beneficiary at such institution, and
                            ``(ii) expenses for books, supplies, and 
                        equipment which are incurred in connection with 
                        such enrollment or attendance, but not to 
                        exceed the allowance for books and supplies 
                        included in the cost of attendance (as defined 
                        in section 472 of the Higher Education Act of 
                        1965 (20 U.S.C. 1087ll), as in effect on the 
                        date of the enactment of the Affordable 
                        Education Act of 2000) as determined by the 
                        eligible educational institution.''.
    (f) Effective Dates.--
            (1) In general.--The amendments made by this section shall 
        apply to taxable years beginning after December 31, 2000.
            (2) Qualified higher education expenses.--The amendments 
        made by subsection (e) shall apply to amounts paid for courses 
        beginning after December 31, 2000.

                    TITLE II--EDUCATIONAL ASSISTANCE

SEC. 201. PERMANENT EXTENSION OF EXCLUSION FOR EMPLOYER-PROVIDED 
              EDUCATIONAL ASSISTANCE.

    (a) In General.--Section 127 (relating to exclusion for educational 
assistance programs) is amended by striking subsection (d).
    (b) Repeal of Limitation on Graduate Education.--
            (1) In general.--The last sentence of section 127(c)(1) is 
        amended by striking ``, and such term also does not include any 
        payment for, or the provision of any benefits with respect to, 
        any graduate level course of a kind normally taken by an 
        individual pursuing a program leading to a law, business, 
        medical, or other advanced academic or professional degree''.
            (2) Effective date.--The amendment made by paragraph (1) 
        shall apply with respect to expenses relating to courses 
        beginning after December 31, 2000.

SEC. 202. ELIMINATION OF 60-MONTH LIMIT ON STUDENT LOAN INTEREST 
              DEDUCTION.

    (a) In General.--Section 221 (relating to interest on education 
loans) is amended by striking subsection (d) and by redesignating 
subsections (e), (f), and (g) as subsections (d), (e), and (f), 
respectively.
    (b) Conforming Amendment.--Section 6050S(e) is amended by striking 
``section 221(e)(1)'' and inserting ``section 221(d)(1)''.
    (c) Effective Date.--The amendments made by this section shall 
apply with respect to any loan interest paid after December 31, 2000.

SEC. 203. EXCLUSION OF CERTAIN AMOUNTS RECEIVED UNDER THE NATIONAL 
              HEALTH SERVICE CORPS SCHOLARSHIP PROGRAM AND THE F. 
              EDWARD HEBERT ARMED FORCES HEALTH PROFESSIONS SCHOLARSHIP 
              AND FINANCIAL ASSISTANCE PROGRAM.

    (a) In General.--Section 117(c) (relating to the exclusion from 
gross income amounts received as a qualified scholarship) is amended--
            (1) by striking ``Subsections (a)'' and inserting the 
        following:
            ``(1) In general.--Except as provided in paragraph (2), 
        subsections (a)'', and
            (2) by adding at the end the following new paragraph:
            ``(2) Exceptions.--Paragraph (1) shall not apply to any 
        amount received by an individual under--
                    ``(A) the National Health Service Corps Scholarship 
                Program under section 338A(g)(1)(A) of the Public 
                Health Service Act, or
                    ``(B) the Armed Forces Health Professions 
                Scholarship and Financial Assistance program under 
                subchapter I of chapter 105 of title 10, United States 
                Code.''.
    (b) Effective Date.--The amendments made by subsection (a) shall 
apply to amounts received in taxable years beginning after December 31, 
1993.

SEC. 204. 2-PERCENT FLOOR ON MISCELLANEOUS ITEMIZED DEDUCTIONS NOT TO 
              APPLY TO QUALIFIED PROFESSIONAL DEVELOPMENT EXPENSES OF 
              ELEMENTARY AND SECONDARY SCHOOL TEACHERS.

    (a) In General.--Section 67(b) (defining miscellaneous itemized 
deductions) is amended by striking ``and'' at the end of paragraph 
(11), by striking the period at the end of paragraph (12) and inserting 
``, and'', and by adding at the end the following new paragraph:
            ``(13) any deduction allowable for the qualified 
        professional development expenses paid or incurred by an 
        eligible teacher.''.
    (b) Definitions.--Section 67 (relating to 2-percent floor on 
miscellaneous itemized deductions) is amended by adding at the end the 
following new subsection:
    ``(g) Qualified Professional Development Expenses of Eligible 
Teachers.--For purposes of subsection (b)(13)--
            ``(1) Qualified professional development expenses.--
                    ``(A) In general.--The term `qualified professional 
                development expenses' means expenses--
                            ``(i) for tuition, fees, books, supplies, 
                        equipment, and transportation required for the 
                        enrollment or attendance of an individual in a 
                        qualified course of instruction, and
                            ``(ii) with respect to which a deduction is 
                        allowable under section 162 (determined without 
                        regard to this section).
                    ``(B) Qualified course of instruction.--The term 
                `qualified course of instruction' means a course of 
                instruction which--
                            ``(i) is--
                                    ``(I) directly related to the 
                                curriculum and academic subjects in 
                                which an eligible teacher provides 
                                instruction, or
                                    ``(II) designed to enhance the 
                                ability of an eligible teacher to 
                                understand and use State standards for 
                                the academic subjects in which such 
                                teacher provides instruction,
                            ``(ii) may--
                                    ``(I) provide instruction in how to 
                                teach children with different learning 
                                styles, particularly children with 
                                disabilities and children with special 
                                learning needs (including children who 
                                are gifted and talented), or
                                    ``(II) provide instruction in how 
                                best to discipline children in the 
                                classroom and identify early and 
                                appropriate interventions to help 
                                children described in subclause (I) to 
                                learn,
                            ``(iii) is tied to challenging State or 
                        local content standards and student performance 
                        standards,
                            ``(iv) is tied to strategies and programs 
                        that demonstrate effectiveness in increasing 
                        student academic achievement and student 
                        performance, or substantially increasing the 
                        knowledge and teaching skills of an eligible 
                        teacher,
                            ``(v) is of sufficient intensity and 
                        duration to have a positive and lasting impact 
                        on the performance of an eligible teacher in 
                        the classroom (which shall not include 1-day or 
                        short-term workshops and conferences), except 
                        that this clause shall not apply to an activity 
                        if such activity is 1 component described in a 
                        long-term comprehensive professional 
                        development plan established by an eligible 
                        teacher and the teacher's supervisor based upon 
                        an assessment of the needs of the teacher, the 
                        students of the teacher, and the local 
                        educational agency involved, and
                            ``(vi) is part of a program of professional 
                        development which is approved and certified by 
                        the appropriate local educational agency as 
                        furthering the goals of the preceding clauses.
                    ``(C) Local educational agency.--The term `local 
                educational agency' has the meaning given such term by 
                section 14101 of the Elementary and Secondary Education 
                Act of 1965, as in effect on the date of the enactment 
                of this subsection.
            ``(2) Eligible teacher.--
                    ``(A) In general.--The term `eligible teacher' 
                means an individual who is a kindergarten through grade 
                12 classroom teacher in an elementary or secondary 
                school.
                    ``(B) Elementary or secondary school.--The terms 
                `elementary school' and `secondary school' have the 
                meanings given such terms by section 14101 of the 
                Elementary and Secondary Education Act of 1965 (20 
                U.S.C. 8801), as so in effect.''.
    (b) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2000.

SEC. 205. CREDIT TO ELEMENTARY AND SECONDARY SCHOOL TEACHERS WHO 
              PROVIDE CLASSROOM MATERIALS.

    (a) In General.--Subpart B of part IV of subchapter A of chapter 1 
is amended by adding at the end the following new section:

``SEC. 30B. CREDIT TO ELEMENTARY AND SECONDARY SCHOOL TEACHERS WHO 
              PROVIDE CLASSROOM MATERIALS.

    ``(a) Allowance of Credit.--In the case of an eligible teacher, 
there shall be allowed as a credit against the tax imposed by this 
chapter for such taxable year an amount equal to the qualified 
elementary and secondary education expenses which are paid or incurred 
by the taxpayer during such taxable year.
    ``(b) Maximum Credit.--The credit allowed by subsection (a) for any 
taxable year shall not exceed $100.
    ``(c) Definitions.--
            ``(1) Eligible teacher.--The term `eligible teacher' means 
        an individual who is a kindergarten through grade 12 classroom 
        teacher, instructor, counselor, aide, or principal in an 
        elementary or secondary school on a full-time basis for an 
        academic year ending during a taxable year.
            ``(2) Qualified elementary and secondary education 
        expenses.--The term `qualified elementary and secondary 
        education expenses' means expenses for books, supplies (other 
        than nonathletic supplies for courses of instruction in health 
        or physical education), computer equipment (including related 
        software and services) and other equipment, and supplementary 
        materials used by an eligible teacher in the classroom.
            ``(3) Elementary or secondary school.--The term `elementary 
        or secondary school' means any school which provides elementary 
        education or secondary education (through grade 12), as 
        determined under State law.
    ``(d) Special Rules.--
            ``(1) Denial of double benefit.--No deduction shall be 
        allowed under this chapter for any expense for which credit is 
        allowed under this section.
            ``(2) Application with other credits.--The credit allowable 
        under subsection (a) for any taxable year shall not exceed the 
        excess (if any) of--
                    ``(A) the regular tax for the taxable year, reduced 
                by the sum of the credits allowable under subpart A and 
                the preceding sections of this subpart, over
                    ``(B) the tentative minimum tax for the taxable 
                year.
    ``(e) Election To Have Credit Not Apply.--A taxpayer may elect to 
have this section not apply for any taxable year.''.
    (b) Clerical Amendment.--The table of sections for subpart B of 
part IV of subchapter A of chapter 1 is amended by adding at the end 
the following new item:

                              ``Sec. 30B. Credit to elementary and 
                                        secondary school teachers who 
                                        provide classroom materials.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2000.

SEC. 206. EXCLUSION OF NATIONAL SERVICE EDUCATIONAL AWARDS.

    (a) In General.--Section 117 (relating to qualified scholarships) 
is amended by adding at the end the following:
    ``(e) Qualified National Service Educational Awards.--
            ``(1) In general.--Gross income for any taxable year shall 
        not include any qualified national service educational award.
            ``(2) Qualified national service educational award.--For 
        purposes of this subsection--
                    ``(A) In general.--The term `qualified national 
                service educational award' means any amount received by 
                an individual in a taxable year as a national service 
                educational award or other amount under section 148 of 
                the National and Community Service Act of 1990 (42 
                U.S.C. 12604) to the extent such amount does not exceed 
                the qualified tuition and related expenses (as defined 
                in subsection (b)(2)) of the individual for such 
                taxable year.
                    ``(B) Limitation.--The total amount of the 
                qualified tuition and related expenses (as so defined) 
                which may be taken into account under subparagraph (A) 
                with respect to an individual for the taxable year 
                shall be reduced (after the application of the 
                reduction provided in section 25A(g)(2)) by the amount 
                of such expenses which were taken into account in 
                determining the credit allowed to the taxpayer or any 
                other person under section 25A with respect to such 
                expenses.''.
    (b) Effective Date.--The amendment made by this section shall apply 
to amounts received in taxable years beginning after December 31, 1999.

SEC. 207. ELIMINATION OF MARRIAGE PENALTY IN PHASEOUT OF EDUCATION LOAN 
              INTEREST DEDUCTION.

    (a) In General.--Subparagraph (B) of section 221(b)(2) (relating to 
limitation based on modified adjusted gross income) is amended--
            (1) by striking ``$60,000'' in clause (i)(II) and inserting 
        ``$80,000'', and
            (2) by inserting ``($30,000 in the case of a joint 
        return)'' after ``$15,000'' in clause (ii).
    (b) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2000.

  TITLE III--LIBERALIZATION OF TAX-EXEMPT FINANCING RULES FOR PUBLIC 
                          SCHOOL CONSTRUCTION

SEC. 301. ADDITIONAL INCREASE IN ARBITRAGE REBATE EXCEPTION FOR 
              GOVERNMENTAL BONDS USED TO FINANCE EDUCATIONAL 
              FACILITIES.

    (a) In General.--Section 148(f)(4)(D)(vii) (relating to increase in 
exception for bonds financing public school capital expenditures) is 
amended by striking ``$5,000,000'' the second place it appears and 
inserting ``$10,000,000''.
    (b) Effective Date.--The amendment made by subsection (a) shall 
apply to obligations issued in calendar years beginning after December 
31, 2000.

SEC. 302. TREATMENT OF QUALIFIED PUBLIC EDUCATIONAL FACILITY BONDS AS 
              EXEMPT FACILITY BONDS.

    (a) Treatment as Exempt Facility Bond.--Subsection (a) of section 
142 (relating to exempt facility bond) is amended by striking ``or'' at 
the end of paragraph (11), by striking the period at the end of 
paragraph (12) and inserting ``, or'', and by adding at the end the 
following new paragraph:
            ``(13) qualified public educational facilities.''.
    (b) Qualified Public Educational Facilities.--Section 142 (relating 
to exempt facility bond) is amended by adding at the end the following 
new subsection:
    ``(k) Qualified Public Educational Facilities.--
            ``(1) In general.--For purposes of subsection (a)(13), the 
        term `qualified public educational facility' means any school 
        facility which is--
                    ``(A) part of a public elementary school or a 
                public secondary school, and
                    ``(B) owned by a private, for-profit corporation 
                pursuant to a public-private partnership agreement with 
                a State or local educational agency described in 
                paragraph (2).
            ``(2) Public-private partnership agreement described.--A 
        public-private partnership agreement is described in this 
        paragraph if it is an agreement--
                    ``(A) under which the corporation agrees--
                            ``(i) to do 1 or more of the following: 
                        construct, rehabilitate, refurbish, or equip a 
                        school facility, and
                            ``(ii) at the end of the term of the 
                        agreement, to transfer the school facility to 
                        such agency for no additional consideration, 
                        and
                    ``(B) the term of which does not exceed the term of 
                the issue to be used to provide the school facility.
            ``(3) School facility.--For purposes of this subsection, 
        the term `school facility' means--
                    ``(A) school buildings,
                    ``(B) functionally related and subordinate 
                facilities and land with respect to such buildings, 
                including any stadium or other facility primarily used 
                for school events, and
                    ``(C) any property, to which section 168 applies 
                (or would apply but for section 179), for use in the 
                facility.
            ``(4) Public schools.--For purposes of this subsection, the 
        terms `elementary school' and `secondary school' have the 
        meanings given such terms by section 14101 of the Elementary 
        and Secondary Education Act of 1965 (20 U.S.C. 8801), as in 
        effect on the date of the enactment of this subsection.
            ``(5) Annual aggregate face amount of tax-exempt 
        financing.--
                    ``(A) In general.--An issue shall not be treated as 
                an issue described in subsection (a)(13) if the 
                aggregate face amount of bonds issued by the State 
                pursuant thereto (when added to the aggregate face 
                amount of bonds previously so issued during the 
                calendar year) exceeds an amount equal to the greater 
                of--
                            ``(i) $10 multiplied by the State 
                        population, or
                            ``(ii) $5,000,000.
                    ``(B) Allocation rules.--
                            ``(i) In general.--Except as otherwise 
                        provided in this subparagraph, the State may 
                        allocate the amount described in subparagraph 
                        (A) for any calendar year in such manner as the 
                        State determines appropriate.
                            ``(ii) Rules for carryforward of unused 
                        limitation.--A State may elect to carry forward 
                        an unused limitation for any calendar year for 
                        3 calendar years following the calendar year in 
                        which the unused limitation arose under rules 
                        similar to the rules of section 146(f), except 
                        that the only purpose for which the 
                        carryforward may be elected is the issuance of 
                        exempt facility bonds described in subsection 
                        (a)(13).''.
    (c) Exemption From General State Volume Caps.--Paragraph (3) of 
section 146(g) (relating to exception for certain bonds) is amended--
            (1) by striking ``or (12)'' and inserting ``(12), or 
        (13)'', and
            (2) by striking ``and environmental enhancements of 
        hydroelectric generating facilities'' and inserting 
        ``environmental enhancements of hydroelectric generating 
        facilities, and qualified public educational facilities''.
    (d) Exemption From Limitation on Use for Land Acquisition.--Section 
147(h) (relating to certain rules not to apply to mortgage revenue 
bonds, qualified student loan bonds, and qualified 501(c)(3) bonds) is 
amended by adding at the end the following new paragraph:
            ``(3) Exempt facility bonds for qualified public-private 
        schools.--Subsection (c) shall not apply to any exempt facility 
        bond issued as part of an issue described in section 142(a)(13) 
        (relating to qualified public educational facilities).''.
    (e) Conforming Amendment.--The heading for section 147(h) is 
amended by striking ``Mortgage Revenue Bonds, Qualified Student Loan 
Bonds, and Qualified 501(c)(3) Bonds'' and inserting ``Certain Bonds''.
    (f) Effective Date.--The amendments made by this section shall 
apply to bonds issued after December 31, 2000.

SEC. 303. FEDERAL GUARANTEE OF SCHOOL CONSTRUCTION BONDS BY FEDERAL 
              HOUSING FINANCE BOARD.

    (a) In General.--Section 149(b)(3) (relating to exceptions) is 
amended by adding at the end the following new subparagraph:
                    ``(E) Certain guaranteed school construction 
                bonds.--Any bond issued as part of an issue 95 percent 
                or more of the net proceeds of which are used for 
                public school construction shall not be treated as 
                federally guaranteed for any calendar year by reason of 
                any guarantee by the Federal Housing Finance Board 
                (through any Federal Home Loan Bank) under the Federal 
                Home Loan Bank Act (12 U.S.C. 1421 et seq.), as in 
                effect on the date of the enactment of this 
                subparagraph, to the extent the face amount of such 
                bond, when added to the aggregate face amount of such 
                bonds previously so guaranteed for such year, does not 
                exceed $500,000,000.''.
    (b) Effective Date.--Subparagraph (E) of section 149(b)(3) of the 
Internal Revenue Code of 1986, as added by the amendment made by 
subsection (a), shall take effect upon the enactment, after the date of 
the enactment of this Act, of legislation expressly authorizing the 
Federal Housing Finance Board to allocate authority to Federal Home 
Loan Banks to guarantee any bond described in such subparagraph, but 
only if such legislation makes specific reference to such subparagraph.

SEC. 304. DISCLOSURE OF FIRE SAFETY STANDARDS AND MEASURES WITH RESPECT 
              TO CAMPUS BUILDINGS.

    (a) Short Title.--This section may be cited as the ``Campus Fire 
Safety Right to Know Act''.
    (b) Amendment.--Section 485 of the Higher Education Act of 1965 (20 
U.S.C. 1092) is amended--
            (1) in subsection (a)(1)--
                    (A) by striking ``and'' at the end of subparagraph 
                (N);
                    (B) by striking the period at the end of 
                subparagraph (O) and inserting ``; and''; and
                    (C) by adding at the end the following new 
                subparagraph:
            ``(P) the fire safety report prepared by the institution 
        pursuant to subsection (h).''; and
            (2) by adding at the end the following new subsection:
    ``(h) Disclosure of Fire Safety Standards and Measures.--
            ``(1) Fire safety reports required.--Each eligible 
        institution participating in any program under this title 
        shall, beginning in academic year 2001-2002, and each year 
        thereafter, prepare, publish, and distribute, through 
        appropriate publications or mailings, to all current students 
        and employees, and to any applicant for enrollment or 
        employment upon request, an annual fire safety report 
        containing at least the following information with respect to 
        the campus fire safety practices and standards of that 
        institution:
                    ``(A) A statement that identifies each student 
                housing facility of the institution, and whether or not 
                each such facility is equipped with a fire sprinkler 
                system or another equally protective fire safety 
                system.
                    ``(B) Statistics concerning the occurrence on 
                campus, during the 2 preceding calendar years for which 
                data are available, of fires and false fire alarms.
                    ``(C) For each such occurrence, a statement of the 
                human injuries or deaths and the structural damage 
                caused by the occurrence.
                    ``(D) Information regarding fire alarms, smoke 
                alarms, the presence of adequate fire escape planning 
                or protocols (as defined in local fire codes), rules on 
                portable electrical appliances, smoking and open flames 
                (such as candles), regular mandatory supervised fire 
                drills, and planned and future improvement in fire 
                safety.
            ``(2) Rule of construction.--Nothing in this subsection 
        shall be construed to authorize the Secretary to require 
        particular policies, procedures, or practices by institutions 
        of higher education with respect to fire safety.
            ``(3) Reports.--Each institution participating in any 
        program under this title shall make periodic reports to the 
        campus community on fires and false fire alarms that are 
        reported to local fire departments in a manner that will aid in 
        the prevention of similar occurrences.
            ``(4) Reports to secretary.--On an annual basis, each 
        institution participating in any program under this title shall 
        submit to the Secretary a copy of the statistics required to be 
        made available under paragraph (1)(B). The Secretary shall--
                    ``(A) review such statistics;
                    ``(B) make copies of the statistics submitted to 
                the Secretary available to the public; and
                    ``(C) in coordination with representatives of 
                institutions of higher education, identify exemplary 
                fire safety policies, procedures, and practices and 
                disseminate information concerning those policies, 
                procedures, and practices that have proven effective in 
                the reduction of campus fires.
            ``(5) Definition of campus.--In this subsection the term 
        `campus' has the meaning provided in subsection (f)(6).''.
    (c) Report to Congress by Secretary of Education.--Not later than 1 
year after the date of enactment of this Act, the Secretary of 
Education shall prepare and submit to the Congress a report 
containing--
            (1) an analysis of the current status of fire safety 
        systems in college and university facilities, including 
        sprinkler systems;
            (2) an analysis of the appropriate fire safety standards to 
        apply to these facilities, which the Secretary shall prepare 
        after consultation with such fire safety experts, 
        representatives of institutions of higher education, and other 
        Federal agencies as the Secretary, in the Secretary's 
        discretion, considers appropriate;
            (3) an estimate of the cost of bringing all nonconforming 
        dormitories and other campus buildings up to current new 
        building codes; and
            (4) recommendations from the Secretary concerning the best 
        means of meeting fire safety standards in all college and 
        university facilities, including recommendations for methods to 
        fund such cost.

                    TITLE IV--TRANSITION TO TEACHING

SEC. 401. SHORT TITLE.

    This title may be cited as the ``Transition to Teaching Act''.

SEC. 402. FINDINGS.

    The Congress finds as follows:
            (1) School districts will need to hire more than 2,000,000 
        teachers in the next decade. The need for teachers in the areas 
        of mathematics, science, foreign languages, special education, 
        and bilingual education, and for those able to teach in high-
        poverty school districts will be particularly high. To meet 
        this need, talented Americans of all ages should be recruited 
        to become successful, qualified teachers.
            (2) Nearly 28 percent of teachers of academic subjects have 
        neither an undergraduate major nor minor in their main 
        assignment fields. This problem is more acute in high-poverty 
        schools, where the out-of-field percentage is 39 percent.
            (3) The Third International Math and Science Study (TIMSS) 
        ranked United States high school seniors last among 16 
        countries in physics and next to last in mathematics. It is 
        also evident, mainly from the TIMSS data, that based on 
        academic scores, a stronger emphasis needs to be placed on the 
        academic preparation of our children in mathematics and 
        science.
            (4) One-fourth of high-poverty schools find it very 
        difficult to fill bilingual teaching positions, and nearly half 
        of public school teachers have students in their classrooms for 
        whom English is a second language.
            (5) Many career-changing professionals with strong content-
        area skills are interested in a teaching career, but need 
        assistance in getting the appropriate pedagogical training and 
        classroom experience.
            (6) The Troops to Teachers model has been highly successful 
        in linking high-quality teachers to teach in high-poverty 
        districts.

SEC. 403. PURPOSE.

    The purpose of this title is to address the need of high-poverty 
school districts for highly qualified teachers in particular subject 
areas, such as mathematics, science, foreign languages, bilingual 
education, and special education, needed by those school districts, by 
recruiting, preparing, placing, and supporting career-changing 
professionals who have knowledge and experience that will help them 
become such teachers.

SEC. 404. PROGRAM AUTHORIZED.

    (a) Authority.--The Secretary is authorized to use funds 
appropriated under subsection (b) for each fiscal year to award grants, 
contracts, or cooperative agreements to institutions of higher 
education and public and private nonprofit agencies or organizations to 
carry out programs authorized by this title.
    (b) Authorization of Appropriations.--For the purpose of carrying 
out this title, there are authorized to be appropriated $25,000,000 for 
each of fiscal years 2001 through 2006.

SEC. 405. APPLICATION.

    Each applicant that desires an award under section 404(a) shall 
submit an application to the Secretary containing such information as 
the Secretary requires, including--
            (1) a description of the target group of career-changing 
        professionals upon which the applicant will focus in carrying 
        out its program under this title, including a description of 
        the characteristics of that target group that shows how the 
        knowledge and experience of its members are relevant to meeting 
        the purpose of this title;
            (2) a description of how the applicant will identify and 
        recruit program participants;
            (3) a description of the training that program participants 
        will receive and how that training will relate to their 
        certification as teachers;
            (4) a description of how the applicant will ensure that 
        program participants are placed and teach in high-poverty local 
        educational agencies;
            (5) a description of the teacher induction services (which 
        may be provided through existing induction programs) the 
        program participants will receive throughout at least their 
        first year of teaching;
            (6) a description of how the applicant will collaborate, as 
        needed, with other institutions, agencies, or organizations to 
        recruit, train, place, and support program participants under 
        this title, including evidence of the commitment of those 
        institutions, agencies, or organizations to the applicant's 
        program;
            (7) a description of how the applicant will evaluate the 
        progress and effectiveness of its program, including--
                    (A) the program's goals and objectives;
                    (B) the performance indicators the applicant will 
                use to measure the program's progress; and
                    (C) the outcome measures that will be used to 
                determine the program's effectiveness; and
            (8) an assurance that the applicant will provide to the 
        Secretary such information as the Secretary determines 
        necessary to determine the overall effectiveness of programs 
        under this title.

SEC. 406. USES OF FUNDS AND PERIOD OF SERVICE.

    (a) Authorized Activities.--Funds under this title may be used 
for--
            (1) recruiting program participants, including informing 
        them of opportunities under the program and putting them in 
        contact with other institutions, agencies, or organizations 
        that would train, place, and support them;
            (2) training stipends and other financial incentives for 
        program participants, not to exceed $5,000 per participant;
            (3) assisting institutions of higher education or other 
        providers of teacher training to tailor their training to meet 
        the particular needs of professionals who are changing their 
        careers to teaching;
            (4) placement activities, including identifying high-
        poverty local educational agencies with a need for the 
        particular skills and characteristics of the newly trained 
        program participants and assisting those participants to obtain 
        employment in those local educational agencies; and
            (5) post-placement induction or support activities for 
        program participants.
    (b) Period of Service.--A program participant in a program under 
this title who completes his or her training shall serve in a high-
poverty local educational agency for at least 3 years.
    (c) Repayment.--The Secretary shall establish such requirements as 
the Secretary determines appropriate to ensure that program 
participants who receive a training stipend or other financial 
incentive under subsection (a)(2), but fail to complete their service 
obligation under subsection (b), repay all or a portion of such stipend 
or other incentive.

SEC. 407. EQUITABLE DISTRIBUTION.

    To the extent practicable, the Secretary shall make awards under 
this title that support programs in different geographic regions of the 
Nation.

SEC. 408. DEFINITIONS.

    In this title:
            (1) High-poverty local educational agency.--The term 
        ``high-poverty local educational agency'' means a local 
        educational agency in which the percentage of children, ages 5 
        through 17, from families below the poverty level is 20 percent 
        or greater, or the number of such children exceeds 10,000.
            (2) Program participants.--The term ``program 
        participants'' means career-changing professionals who--
                    (A) hold at least a baccalaureate degree;
                    (B) demonstrate interest in, and commitment to, 
                becoming a teacher; and
                    (C) have knowledge and experience that are relevant 
                to teaching a high-need subject area in a high-need 
                local educational agency.

                   TITLE V--MISCELLANEOUS PROVISIONS

SEC. 501. EXPANSION OF DEDUCTION FOR COMPUTER DONATIONS TO SCHOOLS.

    (a) Extension of Age of Eligible Computers.--Section 
170(e)(6)(B)(ii) (defining qualified elementary or secondary 
educational contribution) is amended by striking ``2 years'' and 
inserting ``3 years''.
    (b) Reacquired Computers Eligible for Donation.--Section 
170(e)(6)(B)(iii) (defining qualified elementary or secondary 
educational contribution) is amended by inserting ``, the person from 
whom the donor reacquires the property,'' after ``the donor''.
    (c) Effective Date.--The amendments made by this section shall 
apply to contributions made in taxable years ending after the date of 
the enactment of this Act.

SEC. 502. CREDIT FOR COMPUTER DONATIONS TO SCHOOLS AND SENIOR CENTERS.

    (a) In General.--Subpart D of part IV of subchapter A of chapter 1 
(relating to business related credits) is amended by adding at the end 
the following:

``SEC. 45D. CREDIT FOR COMPUTER DONATIONS TO SCHOOLS AND SENIOR 
              CENTERS.

    ``(a) General Rule.--For purposes of section 38, the computer 
donation credit determined under this section is an amount equal to 30 
percent of the qualified computer contributions made by the taxpayer 
during the taxable year as determined after the application of section 
170(e)(6)(A).
    ``(b) Qualified Computer Contribution.--For purposes of this 
section, the term `qualified computer contribution' has the meaning 
given the term `qualified elementary or secondary educational 
contribution' by section 170(e)(6)(B), except that--
            ``(1) such term shall include the contribution of a 
        computer (as defined in section 168(i)(2)(B)(ii)) only if 
        computer software (as defined in section 197(e)(3)(B)) that 
        serves as a computer operating system has been lawfully 
        installed in such computer, and
            ``(2) notwithstanding clauses (i) and (iv) of section 
        170(e)(6)(B), such term shall include the contribution of 
        computer technology or equipment to multipurpose senior centers 
        (as defined in section 102(35) of the Older Americans Act of 
        1965 (42 U.S.C. 3002(35)) described in section 501(c)(3) and 
        exempt from tax under section 501(a) to be used by individuals 
        who have attained 60 years of age to improve job skills in 
        computers.
    ``(c) Increased Percentage for Contributions to Entities in 
Empowerment Zones, Enterprise Communities, and Indian Reservations.--In 
the case of a qualified computer contribution to an entity located in 
an empowerment zone or enterprise community designated under section 
1391 or an Indian reservation (as defined in section 168(j)(6)), 
subsection (a) shall be applied by substituting `50 percent' for `30 
percent'.
    ``(d) Certain Rules Made Applicable.--For purposes of this section, 
rules similar to the rules of paragraphs (1) and (2) of section 41(f) 
shall apply.
    ``(e) Termination.--This section shall not apply to taxable years 
beginning on or after the date which is 3 years after the date of the 
enactment of the New Millennium Classrooms Act.''.
    (b) Current Year Business Credit Calculation.--Section 38(b) 
(relating to current year business credit) is amended by striking 
``plus'' at the end of paragraph (11), by striking the period at the 
end of paragraph (12) and inserting ``, plus'', and by adding at the 
end the following:
            ``(13) the computer donation credit determined under 
        section 45D(a).''.
    (c) Disallowance of Deduction by Amount of Credit.--Section 280C 
(relating to certain expenses for which credits are allowable) is 
amended by adding at the end the following:
    ``(d) Credit for Computer Donations.--No deduction shall be allowed 
for that portion of the qualified computer contributions (as defined in 
section 45D(b)) made during the taxable year that is equal to the 
amount of credit determined for the taxable year under section 45D(a). 
In the case of a corporation which is a member of a controlled group of 
corporations (within the meaning of section 52(a)) or a trade or 
business which is treated as being under common control with other 
trades or businesses (within the meaning of section 52(b)), this 
subsection shall be applied under rules prescribed by the Secretary 
similar to the rules applicable under subsections (a) and (b) of 
section 52.''.
    (d) Limitation on Carryback.--Subsection (d) of section 39 
(relating to carryback and carryforward of unused credits) is amended 
by adding at the end the following:
            ``(9) No carryback of computer donation credit before 
        effective date.--No amount of unused business credit available 
        under section 45D may be carried back to a taxable year 
        beginning on or before the date of the enactment of this 
        paragraph.''.
    (e) Clerical Amendment.--The table of sections for subpart D of 
part IV of subchapter A of chapter 1 is amended by inserting after the 
item relating to section 45C the following:

                              ``Sec. 45D. Credit for computer donations 
                                        to schools and senior 
                                        centers.''.
    (f) Effective Date.--The amendments made by this section shall 
apply to contributions made in taxable years beginning after the date 
of the enactment of this Act.

SEC. 503. REPORT TO CONGRESS REGARDING EXTENT AND SEVERITY OF CHILD 
              POVERTY.

    (a) In General.--Not later than June 1, 2001 and prior to any 
reauthorization of the temporary assistance to needy families program 
under part A of title IV of the Social Security Act (42 U.S.C. 601 et 
seq.) for any fiscal year after fiscal year 2002, the Secretary of 
Health and Human Services (in this section referred to as the 
``Secretary'') shall report to Congress on the extent and severity of 
child poverty in the United States. Such report shall, at a minimum--
            (1) determine for the period since the enactment of the 
        Personal Responsibility and Work Opportunity Reconciliation Act 
        of 1996 (Public Law 104-193; 110 Stat. 2105)--
                    (A) whether the rate of child poverty in the United 
                States has increased;
                    (B) whether the children who live in poverty in the 
                United States have gotten poorer; and
                    (C) how changes in the availability of cash and 
                non-cash benefits to poor families have affected child 
                poverty in the United States;
            (2) identify alternative methods for defining child poverty 
        that are based on consideration of factors other than family 
        income and resources, including consideration of a family's 
        work-related expenses; and
            (3) contain multiple measures of child poverty in the 
        United States that may include the child poverty gap and the 
        extreme poverty rate.
    (b) Legislative Proposal.--If the Secretary determines that during 
the period since the enactment of the Personal Responsibility and Work 
Opportunity Reconciliation Act of 1996 (Public Law 104-193; 110 Stat. 
2105) the extent or severity of child poverty in the United States has 
increased to any extent, the Secretary shall include with the report to 
Congress required under subsection (a) a legislative proposal 
addressing the factors that led to such increase.

SEC. 504. CAREERS TO CLASSROOMS.

    (a) Definitions.--In this section:
            (1) In general.--The terms ``elementary school'', ``local 
        educational agency'', ``secondary school'', and ``Secretary'' 
        have the meanings given the terms in section 14101 of the 
        Elementary and Secondary Education Act of 1965 (20 U.S.C. 
        8801).
            (2) Alternative certification or licensure requirements.--
        The term ``alternative certification or licensure 
        requirements'' means State or local teacher certification or 
        licensure requirements that permit a demonstrated competence in 
        appropriate subject areas gained in careers outside of 
        education to be substituted for traditional teacher training 
        course work.
            (3) Eligible individual.--The term ``eligible individual'' 
        means an individual who has received--
                    (A) in the case of an individual applying for 
                assistance for placement as an elementary school or 
                secondary school teacher, a baccalaureate or advanced 
                degree from an institution of higher education; or
                    (B) in the case of an individual applying for 
                assistance for placement as a teacher's aide in an 
                elementary school or secondary school, an associate, 
                baccalaureate, or advanced degree from an institution 
                of higher education.
            (4) Institution of higher education.--The term 
        ``institution of higher education'' has the meaning given the 
        term in section 101 of the Higher Education Act of 1965 (20 
        U.S.C. 1001)
            (5) State.--The term ``State'' means each of the several 
        States of the United States, the District of Columbia, American 
        Samoa, the Federated States of Micronesia, Guam, the Republic 
        of the Marshall Islands, the Commonwealth of the Northern 
        Mariana Islands, the Commonwealth of Puerto Rico, the Republic 
        of Palau, and the United States Virgin Islands.
    (b) Placement Program.--The Secretary may establish a program of 
awarding grants to States--
            (1) to enable the States to assist eligible individuals to 
        obtain--
                    (A) certification or licensure as elementary school 
                or secondary school teachers; or
                    (B) the credentials necessary to serve as teachers' 
                aides; and
            (2) to facilitate the employment of the eligible 
        individuals by local educational agencies identified under 
        subsection (c)(2) as experiencing a shortage of teachers or 
        teachers' aides.
    (c) States With Alternative Certification Requirements and Teacher 
and Teacher's Aide Shortages.--Upon the establishment of the placement 
program authorized by subsection (b), the Secretary shall--
            (1) conduct a survey of States to identify those States 
        that have alternative certification or licensure requirements 
        for teachers;
            (2) periodically request information from States identified 
        under paragraph (1) to identify in these States those local 
        educational agencies that--
                    (A) are receiving grants under part A of title I of 
                the Elementary and Secondary Education Act of 1965 (20 
                U.S.C. 6311 et seq.) as a result of having within their 
                jurisdictions concentrations of children from low-
                income families; and
                    (B) are also experiencing a shortage of qualified 
                teachers, in particular a shortage of science, 
                mathematics, computer science, or engineering teachers; 
                and
            (3) periodically request information from all States to 
        identify local educational agencies that--
                    (A) are receiving grants under part A of title I of 
                the Elementary and Secondary Education Act of 1965 (20 
                U.S.C. 6311 et seq.) as a result of having within their 
                jurisdictions concentrations of children from low-
                income families; and
                    (B) are experiencing a shortage of teachers' aides.
    (d) Selection of Eligible Individuals.--
            (1) In general.--Selection of eligible individuals to 
        participate in the placement program authorized by subsection 
        (b) shall be made on the basis of applications submitted to a 
        State. An application shall be in such form and contain such 
        information as the State may require.
            (2) Priority.--In selecting eligible individuals to receive 
        assistance for placement as elementary school or secondary 
        school teachers, the State shall give priority to eligible 
        individuals who--
                    (A) have substantial, demonstrated career 
                experience in science, mathematics, computer science, 
                or engineering and agree to seek employment as science, 
                mathematics, computer science, or engineering teachers 
                in elementary schools or secondary schools; or
                    (B) have substantial, demonstrated career 
                experience in another subject area identified by the 
                State as important for national educational objectives 
                and agree to seek employment in that subject area in 
                elementary schools or secondary schools.
    (e) Agreement.--An eligible individual selected to participate in 
the placement program authorized by subsection (b) shall be required to 
enter into an agreement with the State, in which the eligible 
individual agrees--
            (1) to obtain, within such time as the State may require, 
        certification or licensure as an elementary school or secondary 
        school teacher or the necessary credentials to serve as a 
        teacher's aide in an elementary school or secondary school; and
            (2) to accept--
                    (A) in the case of an eligible individual selected 
                for assistance for placement as a teacher, an offer of 
                full-time employment as an elementary school or 
                secondary school teacher for not less than two school 
                years with a local educational agency identified under 
                subsection (c)(2), to begin the school year after 
                obtaining that certification or licensure; or
                    (B) in the case of an eligible individual selected 
                for assistance for placement as a teacher's aide, an 
                offer of full-time employment as a teacher's aide in an 
                elementary school or secondary school for not less than 
                2 school years with a local educational agency 
                identified under subsection (c)(3), to begin the school 
                year after obtaining the necessary credentials.
    (f) Stipend for Participants.--
            (1) In general.--The State shall pay to an eligible 
        individual participating in the placement program a stipend in 
        an amount equal to the lesser of--
                    (A) $5,000; or
                    (B) the total costs of the type described in 
                paragraphs (1), (2), (3), (8), and (9) of section 472 
                of the Higher Education Act of 1965 (20 U.S.C. 1087ll) 
                incurred by the eligible individual while obtaining 
                teacher certification or licensure or the necessary 
                credentials to serve as a teacher's aide and employment 
                as an elementary school or secondary school teacher or 
                teacher aide.
            (2) Relation to other assistance.--A stipend paid under 
        paragraph (1) shall be taken into account in determining the 
        eligibility of the eligible individual for Federal student 
        financial assistance provided under title IV of the Higher 
        Education Act of 1965 (20 U.S.C. 1070 et seq.).
    (g) Grants To Facilitate Placement.--
            (1) Teachers.--In the case of an eligible individual in the 
        placement program obtaining teacher certification or licensure, 
        the State may offer to enter into an agreement under this 
        subsection with the first local educational agency identified 
        under subsection (b)(2) that employs the eligible individual as 
        a full-time elementary school or secondary school teacher after 
        the eligible individual obtains teacher certification or 
        licensure.
            (2) Teacher's aides.--In the case of an eligible individual 
        in the program obtaining credentials to serve as a teacher's 
        aide, the State may offer to enter into an agreement under this 
        subsection with the first local educational agency identified 
        under subsection (b)(3) that employs the participant as a full-
        time teacher's aide.
            (3) Agreements contracts.--Under an agreement referred to 
        in paragraph (1) or (2)--
                    (A) the local educational agency shall agree to 
                employ the eligible individual full time for not less 
                than 2 consecutive school years (at a basic salary to 
                be certified to the State) in a school of the local 
                educational agency that--
                            (i) serves a concentration of children from 
                        low-income families; and
                            (ii) has an exceptional need for eligible 
                        individuals; and
                    (B) the State shall agree to pay to the local 
                educational agency for each eligible individual, from 
                amounts provided under this section, $5,000 per year 
                for a maximum of 2 years.
    (h) Reimbursement Under Certain Circumstances.--
            (1) In general.--If an eligible individual in the placement 
        program fails to obtain teacher certification or licensure, 
        employment as an elementary school or secondary school teacher, 
        or employment as a teacher's aide as required under the 
        agreement or voluntarily leaves, or is terminated for cause, 
        from the employment during the 2 years of required service, the 
        eligible individual shall be required to reimburse the State 
        for any stipend paid to the eligible individual under 
        subsection (f)(1) in an amount that bears the same ratio to the 
        amount of the stipend as the unserved portion of required 
        service bears to the 2 years of required service. A State shall 
        forward the proceeds of any reimbursement received under this 
        paragraph to the Secretary.
            (2) Obligation to reimburse.--The obligation to reimburse 
        the State under this subsection is, for all purposes, a debt 
        owing the United States. A discharge in bankruptcy under title 
        11 shall not release a participant from the obligation to 
        reimburse the State. Any amount owed by an eligible individual 
        under paragraph (1) shall bear interest at the rate equal to 
        the highest rate being paid by the United States on the day on 
        which the reimbursement is determined to be due for securities 
        having maturities of 90 days or less and shall accrue from the 
        day on which the eligible individual is first notified of the 
        amount due.
    (i) Exceptions to Reimbursement Provisions.--
            (1) In general.--An eligible individual in the placement 
        program shall not be considered to be in violation of an 
        agreement entered into under subsection (e) during any period 
        in which the participant--
                    (A) is pursuing a full-time course of study related 
                to the field of teaching at an institution of higher 
                education;
                    (B) is serving on active duty as a member of the 
                Armed Forces;
                    (C) is temporarily totally disabled for a period of 
                time not to exceed 3 years as established by sworn 
                affidavit of a qualified physician;
                    (D) is unable to secure employment for a period not 
                to exceed 12 months by reason of the care required by a 
                spouse who is disabled;
                    (E) is seeking and unable to find full-time 
                employment as a teacher or teacher's aide in an 
                elementary school or secondary school for a single 
                period not to exceed 27 months; or
                    (F) satisfies the provisions of additional 
                reimbursement exceptions that may be prescribed by the 
                Secretary.
            (2) Forgiveness.--An eligible individual shall be excused 
        from reimbursement under subsection (h) if the eligible 
        individual becomes permanently totally disabled as established 
        by sworn affidavit of a qualified physician. The Secretary may 
        also waive reimbursement in cases of extreme hardship to the 
        participant, as determined by the Secretary.

SEC. 505. PESTICIDE APPLICATION IN SCHOOLS.

    (a) In General.--Each school that receives Federal funding shall--
            (1) take steps to reduce the exposure of children to 
        pesticides on school grounds, both indoors and outdoors; and
            (2) provide parents and guardians of children that attend 
        the school with advance notification of certain pesticide 
        applications on school grounds in accordance with subsections 
        (b) and (c).
    (b) EPA List of Toxic Pesticides.--
            (1) In general.--The Administrator of the Environmental 
        Protection Agency shall distribute to each school that receives 
        Federal funding the current manual of the Environmental 
        Protection Agency that guides schools in the establishment of a 
        least toxic pesticide policy.
            (2) List.--Not later than 1 year after the date of 
        enactment of this Act, the Administrator of the Environmental 
        Protection Agency shall provide each school that receives 
        Federal funding with a list of pesticides that contain a 
        substance that the Administrator has identified as a known 
        carcinogen, a developmental or reproductive toxin, or a 
        category I or II acute nerve toxin.
    (c) Parental Notification of Toxic Pesticide Applications in 
Schools.--
            (1) In general.--On or after the date that is 18 months 
        after the date of enactment of this Act, any school that 
        receives Federal funding shall not apply any pesticide 
        described in paragraph (b)(2) on school grounds, either indoors 
        or outdoors, unless an administrative official of the school 
        provides notice of the planned application to parents and 
        guardians of children that attend the school not later than 48 
        hours before the application of the pesticide.
            (2) Notice.--The notice described in paragraph (1)--
                    (A) shall include--
                            (i) a description of the intended area of 
                        application; and
                            (ii) the name of each pesticide to be 
                        applied; and
                    (B) shall indicate whether the pesticide is a known 
                carcinogen, a developmental or reproductive toxin, or a 
                category I or II acute nerve toxin.
            (3) Incorporation of notice.--The notice described in 
        paragraph (1) may be incorporated in any notice that is being 
        sent to parents and guardians at the time at which the 
        pesticide notice is required to be sent.

SEC. 506. SENSE OF THE SENATE REGARDING A SAFE LEARNING ENVIRONMENT.

    (a) Findings.--Congress finds that:
            (1) Every school child in America should have a safe 
        learning environment free from violence and illegal drugs.
            (2) Violence and illegal drugs in the schools undermine a 
        safe and secure learning environment.
            (3) Any instance of violence or illegal drugs in schools is 
        unacceptable and undermines the efforts of Congress, State and 
        local governments and school boards, and parents to provide 
        American children with the best education possible.
            (4) In the last 12 months, there have been at least 50 
        people killed or injured in school shootings in America.
            (5) From 1992 through 1998, the number of referrals made by 
        the Bureau of Alcohol, Tobacco, and Firearms to the Federal 
        Bureau of Investigation for Federal firearms prosecutions fell 
        44 percent, which resulted in a 40-percent drop in prosecutions 
        and a 31-percent decline in convictions, allowing criminals to 
        remain on the streets preying on our most vulnerable citizens, 
        including our children.
            (6) From 1996 to 1998, the Justice Department only 
        prosecuted an average of seven persons per year for illegally 
        transferring a handgun to a juvenile.
            (7) Since 1992, the percentage of 8th grade students using 
        marijuana, cocaine, and heroin in the past 30 days has 
        increased 162 percent, 86 percent, and 50 percent, 
        respectively, according to the respected Monitoring the Future 
        survey.
            (8) The February 29, 2000, shooting at Buell Elementary 
        School in Mount Morris Township, Michigan, is evidence that gun 
        violence in American schools continues, that the drug culture 
        contributes to youth violence, and that the breakdown of the 
        American family has contributed to the increase in violence 
        among American children.
    (b) Sense of the Senate.--It is the sense of the Senate that the 
reauthorization of the Safe and Drug-Free Schools program that Congress 
soon will be considering should target the elimination of illegal drugs 
and violence in our schools and should encourage local schools to 
insist on zero-tolerance policies towards violence and illegal drug 
use.

SEC. 507. REDUCTION IN SCHOOL VIOLENCE.

    (a) Short Title.--This section may be cited as the ``School 
Violence Reduction Act''.
    (b) Findings.--Congress finds that:
            (1) Every school child in America has a right to a safe 
        learning environment free from guns and violence.
            (2) The United States Department of Education report on the 
        Implementation of the Gun-Free Schools Act found that 3,930 
        children were expelled for bringing guns to school during the 
        1997-98 school year.
            (3) Nationwide, 57 percent of the expulsions were high 
        school students, 33 percent were in junior high and 10 percent 
        were in elementary school.
    (c) Grants.--The Secretary of Education shall award grants to 
elementary and secondary schools (as such terms are defined in section 
14101 of the Elementary and Secondary Education Act of 1965 (20 U.S.C. 
8801)) to enable such schools to--
            (1) develop and disseminate model programs to reduce 
        violence in schools,
            (2) educate students about the dangers associated with 
        guns, and
            (3) provide violence prevention information (including 
        information about safe gun storage) to children and their 
        parents.
    (d) Application.--To be eligible to receive a grant under 
subsection (b), an elementary or secondary school shall prepare and 
submit to the Secretary of Education an application at such time, in 
such manner, and containing such information as the Secretary may 
require.
    (e) Public Service Announcements.--The Secretary of Education shall 
provide for the development and dissemination of public service 
announcements and other information on ways to reduce violence in our 
Nation's schools, including safe gun storage and other measures.
    (f) Authorization of Appropriations.--For the purpose of carrying 
out this section, there are authorized to be appropriated funds of up 
to $7,000,000 for fiscal year 2001 and such sums as may be necessary 
for each of the four succeeding fiscal years.

            Passed the Senate March 2, 2000.

            Attest:

                                                             Secretary.
106th CONGRESS

  2d Session

                                S. 1134

_______________________________________________________________________

                                 AN ACT

     To amend the Internal Revenue Code of 1986 to allow tax-free 
    expenditures from education individual retirement accounts for 
   elementary and secondary school expenses, to increase the maximum 
    annual amount of contributions to such accounts, and for other 
                               purposes.

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