Calendar No. 157

105TH CONGRESS

1ST SESSION S. 1160

A BILL

To provide for educational facilities improvement.

SEPTEMBER 11, 1997

Read the second time and placed on the calendar
II

Calendar No. 157

105TH CONGRESS

1ST SESSION S. 1160

To provide for educational facilities improvement.

IN THE SENATE OF THE UNITED STATES

SEPTEMBER 10, 1997

Mr. DASCHLE (for himself and Ms. MOSELEY-BRAUN) introduced the

following bill; which was read the first time

SEPTEMBER 11, 1997

Read the second time and placed on the calendar

A BILL

To provide for educational facilities improvement.

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 ‘‘Educational Facilities

5 Improvement Act’’.
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1 SEC. 2. PROVISION OF ASSISTANCE FOR CONSTRUCTION

2 AND RENOVATION OF EDUCATIONAL FACILI3 TIES.

4 Title XII of the Elementary and Secondary Edu5 cation Act of 1965 (20 U.S.C. 8501 et seq.) is amended—

6 (1) by repealing sections 12002 and 12003;

7 (2) by redesignating sections 12001 and 12004

8 through 12013, as sections 12101 and 12102

9 through 12111, respectively;

10 (3) by inserting after the title heading the fol11 lowing:

12 ‘‘SEC. 12001. FINDINGS.

13 ‘‘The Congress finds the following:

14 ‘‘(1) The General Accounting Office performed

15 a comprehensive survey of the Nation’s public ele16 mentary and secondary school facilities, and found

17 severe levels of disrepair in all areas of the United

18 States.

19 ‘‘(2) The General Accounting Office concluded

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

21 need of extensive repair or replacement. Seven mil22 lion children attend schools with life safety code vio23 lations. Twelve million children attend schools with

24 leaky roofs.

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

26 problem of crumbling schools transcends demo-
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1 graphic and geographic boundaries. At 38 percent of

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

3 percent of suburban schools, at least one building is

4 in need of extensive repair or should be completely

5 replaced.

6 ‘‘(4) The condition of school facilities has a di7 rect affect on the safety of students and teachers,

8 and on the ability of students to learn.

9 ‘‘(5) Academic research has proven a direct cor10 relation between the condition of school facilities and

11 student achievement. At Georgetown University, re12 searchers found students assigned to schools in poor

13 condition can be expected to fall 10.9 percentage

14 points below those in buildings in excellent condition.

15 Similar studies have demonstrated up to a 20 per16 cent improvement in test scores when students were

17 moved from a poor facility to a new facility.

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

19 schools are not prepared to incorporate modern tech20 nology into the classroom. Forty-six percent of

21 schools lack adequate electrical wiring to support the

22 full-scale use of technology. More than a third of

23 schools lack the requisite electrical power. Fifty-six

24 percent of schools have insufficient phone lines for

25 modems.
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1 ‘‘(7) The Department of Education reported

2 that elementary and secondary school enrollment, al3 ready at a record high level, will continue to grow

4 during the period between 1996 and 2000, and that

5 in order to accommodate this growth, the United

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

7 over this time period.

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

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

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

11 modernizing schools so the schools can utilize 21st

12 century technology, nor including the cost of expan13 sion to meet record enrollment levels.

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

15 proven inadequate to meet the challenges facing to16 day’s aging school facilities. Large numbers of local

17 educational agencies have difficulties securing fi18 nancing for school facility improvement.

19 ‘‘(10) The Federal Government can support ele20 mentary and secondary school facilities, and can le21 verage additional funds for the improvement of ele22 mentary and secondary school facilities.

23 ‘‘SEC. 12002. PURPOSE.

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

25 authorities improve the quality of education at their public
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1 schools through the provision of Federal funds to enable

2 the State and local authorities to meet the cost associated

3 with the improvement of school facilities within their juris4 dictions.

5 ‘‘PART A—GENERAL INFRASTRUCTURE

6 IMPROVEMENT GRANT PROGRAM’’;

7 and

8 (4) by adding at the end the following:

9 ‘‘PART B—CONSTRUCTION AND RENOVATION

10 BOND SUBSIDY PROGRAM

11 ‘‘SEC. 12201. DEFINITIONS.

12 ‘‘As used in this part:

13 ‘‘(1) EDUCATIONAL FACILITY.—The term ‘edu14 cational facility’ has the meaning given the term

15 ‘school’ in section 12110.

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

17 means the geographic area served by a local edu18 cational agency.

19 ‘‘(3) LOCAL BOND AUTHORITY.—The term

20 ‘local bond authority’ means—

21 ‘‘(A) a local educational agency with au22 thority to issue a bond for construction or ren23 ovation of educational facilities in a local area;

24 and
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1 ‘‘(B) a political subdivision of a State with

2 authority to issue such a bond for an area in3 cluding a local area.

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

5 means the official poverty line (as defined by the Of6 fice of Management and Budget, and revised annu7 ally in accordance with section 673(2) of the Omni8 bus Budget Reconciliation Act of 1981 (42 U.S.C.

9 9902(2))) applicable to a family of the size involved.

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

11 the several States of the United States, the District

12 of Columbia, and the Commonwealth of Puerto Rico.

13 ‘‘SEC. 12202. AUTHORIZATION OF PROGRAM.

14 ‘‘(a) PROGRAM AUTHORITY.—Of the amount appro15 priated under section 12210 for a fiscal year and not re16 served under subsection (b), the Secretary shall use—

17 ‘‘(1) 33 percent of such amount to award

18 grants to local bond authorities for not more than

19 125 eligible local areas as provided for under section

20 12203; and

21 ‘‘(2) 67 percent of such amount to award

22 grants to States as provided for under section

23 12204.

24 ‘‘(b) SPECIAL RULE.—The Secretary may reserve—
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1 ‘‘(1) not more than 1.5 percent of the amount

2 appropriated under section 12210 to provide assist3 ance to Indian schools in accordance with the pur4 pose of this title;

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

6 appropriated under section 12210 to provide assist7 ance to Guam, the United States Virgin Islands,

8 American Samoa, the Commonwealth of the North9 ern Mariana Islands, the Republic of the Marshall

10 Islands, the Federated States of Micronesia, and the

11 Republic of Palau to carry out the purpose of this

12 title; and

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

14 appropriated under section 12210 to carry out sec15 tion 12209.

16 ‘‘SEC. 12203. DIRECT GRANTS TO LOCAL BOND AUTHORI17 TIES.

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

19 grant under section 12202(a)(1) to eligible local bond au20 thorities to provide assistance for construction or renova21 tion of educational facilities in a local area.

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

23 use amounts received through a grant made under section

24 12202(a)(1) to pay a portion of the interest costs applica-
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1 ble to any local bond issued to finance an activity de2 scribed in section 12205 with respect to the local area.

3 ‘‘(c) ELIGIBILITY AND DETERMINATION.—

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

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

6 local bond authority shall demonstrate the capacity

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

8 125 local areas for which the Secretary has made a

9 determination under paragraph (2).

10 ‘‘(2) DETERMINATION.—

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

12 make a determination of the 100 local areas

13 that have the highest numbers of children who

14 are—

15 ‘‘(i) aged 5 to 17, inclusive; and

16 ‘‘(ii) members of families with in17 comes that do not exceed 100 percent of

18 the poverty line.

19 ‘‘(B) DISCRETIONARY.—The Secretary

20 may make a determination of 25 local areas, for

21 which the Secretary has not made a determina22 tion under subparagraph (A), that have extraor23 dinary needs for construction or renovation of

24 educational facilities that the local bond author25 ity serving the local area is unable to meet.
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1 ‘‘(d) APPLICATION.—To be eligible to receive a grant

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

3 prepare and submit to the Secretary an application at

4 such time, in such manner, and containing such informa5 tion as the Secretary may require, including—

6 ‘‘(1) an assurance that the application was de7 veloped in consultation with parents and classroom

8 teachers;

9 ‘‘(2) information sufficient to enable the Sec10 retary to make a determination under subsection

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

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

13 structural, mechanical, or electrical construction or

14 renovation to be supported with the assistance pro15 vided under this part;

16 ‘‘(4) a cost estimate of the proposed construc17 tion or renovation;

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

19 as unused bonding capacity, that are available to

20 carry out the activities for which assistance is re21 quested under this part;

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

23 with funds provided under this part will promote en24 ergy conservation; and
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1 ‘‘(7) such other information and assurances as

2 the Secretary may require.

3 ‘‘(e) AWARD OF GRANTS.—

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

5 section 12202(a)(1), the Secretary shall give pref6 erence to a local bond authority based on—

7 ‘‘(A) the extent to which the local edu8 cational agency serving the local area involved

9 or the educational facility for which the author10 ity seeks a grant (as appropriate) meets the cri11 teria described in section 12103(a);

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

13 facility is overcrowded; and

14 ‘‘(C) the extent to which assistance pro15 vided through the grant will be used to fund

16 construction or renovation that, but for receipt

17 of the grant, would not otherwise be possible to

18 undertake.

19 ‘‘(2) AMOUNT OF ASSISTANCE.—

20 ‘‘(A) IN GENERAL.—In determining the

21 amount of assistance for which local bond au22 thorities are eligible under section 12202(a)(1),

23 the Secretary shall—
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1 ‘‘(i) give preference to a local bond

2 authority based on the criteria specified in

3 paragraph (1); and

4 ‘‘(ii) consider—

5 ‘‘(I) the amount of the cost esti6 mate contained in the application of

7 the local bond authority under sub8 section (d)(4);

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

10 area several by the local bond author11 ity; and

12 ‘‘(III) any other factors deter13 mined to be appropriate by the Sec14 retary.

15 ‘‘(B) MAXIMUM AMOUNT OF ASSIST16 ANCE.—A local bond authority shall be eligible

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

18 amount that does not exceed the appropriate

19 percentage under section 12204(f)(3) of the in20 terest costs applicable to any local bond issued

21 to finance an activity described in section

22 12205 with respect to the local area involved.

23 ‘‘SEC. 12204. GRANTS TO STATES.

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

25 grant under section 12202(a)(2) to each eligible State to
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1 provide assistance to the State, or local bond authorities

2 in the State, for construction and renovation of edu3 cational facilities in local areas.

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

5 received through a grant made under section

6 12202(a)(2)—

7 ‘‘(1) to pay a portion of the interest costs appli8 cable to any State bond issued to finance an activity

9 described in section 12205 with respect to the local

10 areas; or

11 ‘‘(2) to provide assistance to local bond authori12 ties in the State to pay a portion of the interest

13 costs applicable to any local bond issued to finance

14 an activity described in section 12205 with respect

15 to the local areas.

16 ‘‘(c) AMOUNT OF GRANT TO STATE.—

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

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

19 shall award a grant to each eligible State that is

20 equal to the total of—

21 ‘‘(A) a sum that bears the same relation22 ship to 50 percent of such amount as the total

23 amount of funds made available for all eligible

24 local educational agencies in the State under

25 part A of title I for such year bears to the total
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1 amount of funds made available for all eligible

2 local educational agencies in all States under

3 such part for such year; and

4 ‘‘(B) a sum that bears the same relation5 ship to 50 percent of such amount as the total

6 amount of funds made available for all eligible

7 local educational agencies in the State under

8 title VI for such year bears to the total amount

9 of funds made available for all eligible local

10 educational agencies in all States under such

11 title for such year.

12 ‘‘(2) ELIGIBLE LOCAL EDUCATIONAL AGEN13 CIES.—For the purpose of paragraph (1) the term

14 ‘eligible local educational agency’ means a local edu15 cational agency that does not serve a local area for

16 which an eligible local bond authority received a

17 grant under section 12203.

18 ‘‘(d) STATE APPLICATIONS REQUIRED.—To be eligi19 ble to receive a grant under section 12202(a)(2), a State

20 shall prepare and submit to the Secretary an application

21 at such time, in such manner, and containing such infor22 mation as the Secretary may require. Such application

23 shall contain—
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1 ‘‘(1) a description of the process the State will

2 use to determine which local bond authorities will re3 ceive assistance under subsection (b)(2).

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

5 section will be used to increase the amount of school

6 construction or renovation in the State for a fiscal

7 year compared to such amount in the State for the

8 preceding fiscal years.

9 ‘‘(e) ADMINISTERING AGENCY.—

10 ‘‘(1) IN GENERAL.—The State agency with au11 thority to issue bonds for the construction or renova12 tion of educational facilities, or with the authority to

13 otherwise finance such construction or renovation,

14 shall administer the amount received through the

15 grant.

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

17 paragraph (1) exists, or if there is more than one

18 such agency, then the chief executive officer of the

19 State and the chief State school officer shall des20 ignate a State entity or individual to administer the

21 amounts received through the grant.

22 ‘‘(f) ASSISTANCE TO LOCAL BOND AUTHORITIES.—

23 ‘‘(1) IN GENERAL.—To be eligible to receive as24 sistance from a State under this section, a local

25 bond authority shall prepare and submit to the State
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1 agency designated under subsection (e) an applica2 tion at such time, in such manner, and containing

3 such information as the State agency may require,

4 including the information described in section

5 12203(d).

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

7 section, the State agency shall give preference to a

8 local bond authority based on—

9 ‘‘(A) the extent to which the local edu10 cational agency serving the local area involved

11 or the educational facility for which the author12 ity seeks the grant (as appropriate) meets the

13 criteria described in section 12103(a);

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

15 facility is overcrowded; and

16 ‘‘(C) the extent to which assistance pro17 vided through the grant will be used to fund

18 construction or renovation that, but for receipt

19 of the grant, would not otherwise be possible to

20 undertake.

21 ‘‘(3) AMOUNT OF ASSISTANCE.—A local bond

22 authority seeking assistance for a local area served

23 by a local educational agency described in—

24 ‘‘(A) clause (i)(I) or clause (ii)(I) of sec25 tion 1125(c)(2)(A), shall be eligible for assist-
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1 ance in an amount that does not exceed 10 per2 cent;

3 ‘‘(B) clause (i)(II) or clause (ii)(II) of sec4 tion 1125(c)(2)(A), shall be eligible for assist5 ance in an amount that does not exceed 20 per6 cent;

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

8 section 1125(c)(2)(A), shall be eligible for as9 sistance in an amount that does not exceed 30

10 percent;

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

12 section 1125(c)(2)(A), shall be eligible for as13 sistance in an amount that does not exceed 40

14 percent; and

15 ‘‘(E) clause (i)(V) or clause (ii)(V) of sec16 tion 1125(c)(2)(A), shall be eligible for assist17 ance in an amount that does not exceed 50 per18 cent;

19 of the interest costs applicable to any local bond is20 sued to finance an activity described in section

21 12205 with respect to the local area.

22 ‘‘(g) ASSISTANCE TO STATE.—

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

24 finance an activity described in section 12205 with

25 respect to local areas, the State shall be eligible for
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1 assistance in an amount that does not exceed the

2 percentage calculated under the formula described in

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

4 State bond with respect to the local areas.

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

6 formula for determining the percentage referred to

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

8 percentage shall consist of a weighted average of the

9 percentages referred to in subparagraphs (A)

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

11 involved.

12 ‘‘SEC. 12205. AUTHORIZED ACTIVITIES.

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

14 significant size and scope that consists of—

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

16 structures related to academic learning, including

17 the repair of leaking roofs, crumbling walls, inad18 equate plumbing, poor ventilation equipment, and in19 adequate heating or light equipment;

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

21 the educational facility involved;

22 ‘‘(3) an activity to enhance the educational fa23 cility involved to provide access for students, teach24 ers, and other individuals with disabilities;
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1 ‘‘(4) an activity to improve the energy efficiency

2 of the educational facility involved;

3 ‘‘(5) an activity to address environmental haz4 ards at the educational facility involved, such as

5 poor ventilation, indoor air quality, or lighting;

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

7 facilitates educational technology, such as commu8 nications outlets, electrical systems, power outlets, or

9 a communication closet;

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

11 the needs imposed by enrollment growth; and

12 ‘‘(8) any other activity the Secretary determines

13 achieves the purpose of this title.

14 ‘‘SEC. 12206. STATE GRANT WAIVERS.

15 ‘‘(a) WAIVER FOR STATE ISSUANCE OF BOND.—

16 ‘‘(1) IN GENERAL.—A State that issues a bond

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

18 local area may request that the Secretary waive the

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

20 area, in calculating the amount of assistance the

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

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

23 for one of the reasons described in subparagraphs

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

25 behalf of the local area. Under such a waiver, the
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1 Secretary may permit the State to use amounts re2 ceived through a grant made under section

3 12202(a)(2) to pay for not more than 80 percent of

4 the interest costs applicable to the State bond with

5 respect to the local area.

6 ‘‘(2) DEMONSTRATION BY STATE.—To be eligi7 ble to receive a waiver under this subsection, a State

8 shall demonstrate to the satisfaction of the Secretary

9 that—

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

11 local area has reached a limit on its borrowing

12 authority as a result of a debt ceiling or prop13 erty tax cap;

14 ‘‘(B) the local area has a high percentage

15 of low-income residents, or an unusually high

16 property tax rate;

17 ‘‘(C) the demographic composition of the

18 local area will not support additional school

19 spending;

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

21 of failed attempts to pass bond referenda;

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

23 percentage of Federally-owned land that is not

24 subject to local taxation; or
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1 ‘‘(F) for another reason, no local entity is

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

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

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

5 the Secretary waive the use requirements of section

6 12204(b) for a local bond authority to permit the

7 State to provide assistance to the local bond author8 ity to finance construction or renovation by means

9 other than through the issuance of bonds.

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

11 waiver granted under this subsection may provide

12 assistance to a local bond authority in accordance

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

14 enable the local bond authority to repay the costs in15 curred by the local bond authority in financing an

16 activity described in section 12205. The local bond

17 authority shall be eligible to receive the amount of

18 such assistance that the Secretary estimates the

19 local bond authority would be eligible to receive

20 under section 12204(f)(3) if the construction or ren21 ovation were financed through the issuance of a

22 bond.

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

24 shall make available to the local bond authority (di25 rectly or through donations from public or private
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1 entities) non-Federal contributions in an amount

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

3 funds provided to the local bond authority through

4 the grant.

5 ‘‘(c) WAIVER FOR OTHER USES.—

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

7 the Secretary waive the use requirements of section

8 12204(b) for a State to permit the State to carry

9 out activities that achieve the purpose of this title.

10 ‘‘(2) DEMONSTRATION BY STATE.—To be eligi11 ble to receive a waiver under this subsection, a State

12 shall demonstrate to the satisfaction of the Secretary

13 that the use of assistance provided under the waiv14 er—

15 ‘‘(A) will result in an equal or greater

16 amount of construction or renovation of edu17 cational facilities than the provision of assist18 ance to defray the interest costs applicable to a

19 bond for such construction or renovation; and

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

21 are effective in carrying out the activities de22 scribed in section 12205, such as—

23 ‘‘(i) the capitalization of a revolving

24 loan fund for such construction or renova25 tion;
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1 ‘‘(ii) the use of funds for reinsurance

2 or guarantees with respect to the financing

3 of such construction or renovation;

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

5 leverage private sector resources for such

6 construction or renovation;

7 ‘‘(iv) the capitalization of authorities

8 similar to State Infrastructure Banks to

9 leverage additional funds for such con10 struction or renovation; or

11 ‘‘(v) any other activity the Secretary

12 determines achieves the purpose of this

13 title.

14 ‘‘(d) LOCAL BOND AUTHORITY WAIVER.—

15 ‘‘(1) IN GENERAL.—A local bond authority may

16 request the Secretary waive the use requirements of

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

18 the authority to finance construction or renovation

19 of educational facilities by means other than through

20 use of bonds.

21 ‘‘(2) DEMONSTRATION.—To be eligible to re22 ceive a waiver under this subsection, a local bond

23 authority shall demonstrate that the amounts made

24 available through a grant under the waiver will re25 sult in an equal or greater amount of construction
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1 or renovation of educational facilities than the provi2 sion of assistance to defray the interest costs appli3 cable to a bond for such construction or renovation.

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

5 authority that desires a waiver under this section shall

6 submit a waiver request to the Secretary that—

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

8 ‘‘(2) with respect to a waiver described in sub9 section (a), (c), or (d), makes the demonstration de10 scribed in subsection (a)(2), (c)(2), or (d)(2), respec11 tively;

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

13 will further the purpose of this title; and

14 ‘‘(4) describes the use of assistance provided

15 under such waiver.

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

17 make a determination with respect to a request submitted

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

19 on which such request was submitted.

20 ‘‘(g) GENERAL REQUIREMENTS.—

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

22 submitted by a State under this section, the State

23 shall—

24 ‘‘(A) provide all interested local edu25 cational agencies in the State with notice and a
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1 reasonable opportunity to comment on the re2 quest;

3 ‘‘(B) submit the comments to the Sec4 retary; and

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

6 public regarding the waiver request in the man7 ner that the applying State customarily pro8 vides similar notices and information to the

9 public.

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

11 of a waiver request submitted by a local bond au12 thority under this section, the local bond authority

13 shall—

14 ‘‘(A) provide the affected local educational

15 agency with notice and a reasonable oppor16 tunity to comment on the request;

17 ‘‘(B) submit the comments to the Sec18 retary; and

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

20 public regarding the waiver request in the man21 ner that the applying local bond authority cus22 tomarily provides similar notices and informa23 tion to the public.

24 ‘‘SEC. 12207. GENERAL PROVISIONS.

25 ‘‘(a) FAILURE TO ISSUE BONDS.—
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1 ‘‘(1) STATES.—If a State that receives assist2 ance under this part fails to issue a bond for which

3 the assistance is provided, the amount of such as4 sistance shall be made available to the State as pro5 vided for under section 12204, during the first fiscal

6 year following the date of repayment.

7 ‘‘(2) LOCAL BOND AUTHORITIES AND LOCAL

8 AREAS.—If a local bond authority that receives as9 sistance under this part fails to issue a bond, or a

10 local area that receives such assistance fails to be11 come the beneficiary of a bond, for which the assist12 ance is provided, the amount of such assistance—

13 ‘‘(A) in the case of assistance received

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

15 the Secretary and made available as provided

16 for under section 12203; and

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

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

19 the State and made available as provided for

20 under section 12204.

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

22 The Secretary shall not be liable for any debt incurred

23 by a State or local bond authority for which assistance

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

25 a local educational agency to subsidize a debt other than
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1 the issuance of a bond, the Secretary shall have no obliga2 tion to repay the lending institution to whom the debt is

3 owed if the local educational agency defaults.

4 ‘‘SEC. 12208. FAIR WAGES.

5 ‘‘The provisions of section 12107 shall apply with re6 spect to all laborers and mechanics employed by contrac7 tors or subcontractors in the performance of any contract

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

9 construction, including painting and decorating, of any

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

11 assistance provided under this part.

12 ‘‘SEC. 12209. REPORT.

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

14 for each fiscal year the Secretary shall—

15 ‘‘(1) collect such data as the Secretary deter16 mines necessary at the school, local, and State levels;

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

18 national studies and evaluations, in order to—

19 ‘‘(A) monitor the progress of activities sup20 ported with funds provided under this part; and

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

22 educational facilities; and

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

24 Congress regarding the findings of the studies and

25 evaluations described in paragraph (2).
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1 ‘‘SEC. 12210. FUNDING.

2 ‘‘(a) IN GENERAL.—There are appropriated

3 $1,900,000,000 for fiscal year 1998 to carry out this part.

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

5 State or local bond authority awarded a grant under this

6 part shall be entitled to payments under the grant.

7 ‘‘(c) AVAILABILITY.—Any amounts appropriated pur8 suant to the authority of subsection (a) shall remain avail9 able until expended.’’.

10 SEC. 3. CONFORMING AMENDMENTS.

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

12 Elementary and Secondary Education Act of 1965 (as re13 designated by section 2(3)) is amended—

14 (1) in section 12102(a) (as redesignated by sec15 tion 2(2))—

16 (A) in paragraph (1)—

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

18 ‘‘12111’’;

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

20 ‘‘12103’’; and

21 (iii) by striking ‘‘12007’’ and insert22 ing ‘‘12105’’; and

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

24 and inserting ‘‘12111’’; and
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1 (2) in section 12110(3)(C) (as redesignated by

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

3 ‘‘12104’’.

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

5 of the Elementary and Secondary Education Act of 1965

6 (as redesignated by section 2(3)) (20 U.S.C. 8501 et seq.)

7 is further amended—

8 (1) in section 12101 (as redesignated by

9 section 2(2)), by striking ‘‘This title’’ and in10 serting ‘‘This part’’; and

11 (2) in sections 12102(a)(2), 12102(b)(1),

12 12103(a), 12103(b), 12103(b)(2), 12103(c),

13 12103(d), 12104(a), 12104(b)(2), 12104(b)(3),

14 12104(b)(4), 12104(b)(6), 12104(b)(7),

15 12105(a), 12105(b), 12106(a), 12106(b),

16 12106(c), 12106(c)(1), 12106(c)(7), 12106(e),

17 12107, 12108(a)(1), 12108(a)(2), 12108(b)(1),

18 12108(b)(2), 12108(b)(3), 12108(b)(4),

19 12109(2)(A), and 12110 (as redesignated by

20 section 2(2)), by striking ‘‘this title’’ each place

21 it appears and inserting ‘‘this part’’.
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1 SEC. 4. MODIFICATION TO FOREIGN TAX CREDIT

2 CARRYBACK AND CARRYOVER PERIODS.

3 (a) IN GENERAL.—Subsection (c) of section 904 of

4 the Internal Revenue Code of 1986 (relating to limitation

5 on credit) is amended—

6 (1) by striking ‘‘in the second preceding taxable

7 year,’’, and

8 (2) by striking ‘‘or fifth’’ and inserting ‘‘fifth,

9 sixth, or seventh’’.

10 (b) EFFECTIVE DATE.—The amendment made by

11 subsection (a) shall apply to credits arising in taxable

12 years beginning after December 31, 1997.