(1) According to a 1999 issue brief prepared by 
the National Center for Education Statistics, the av-
erage public school in America is 42 years old, and 
school buildings begin rapid deterioration after 40 
years. In addition, 29 percent of all public schools 
are in the oldest condition, meaning that the schools 
were built before 1970 and have either never been 
renovated or were renovated prior to 1980. 
(2) According to reports issued by the General 
Accounting Office (GAO) in 1995 and 1996, it 
would cost $112,000,000,000 to bring the Nation’s 
schools into good overall condition, and one-third of 
all public schools need extensive repair or replace-
ment. 
(3) Many schools do not have the appropriate 
infrastructure to support computers and other tech-
nologies that are necessary to prepare students for 
the jobs of the 21st century. 
(4) Without impeding on local control, the Fed-
eral Government appropriately can assist State and 
local governments in addressing school construction, 
renovation, and repair needs by providing low-inter-
est loans for purposes of paying interest on related 
bonds. 
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SEC. 3. DEFINITIONS. 
In this Act: 
(1) BOND.—The term ‘‘bond’’ includes any ob-
ligation. 
(2) GOVERNOR.—The term ‘‘Governor’’ in-
cludes the chief executive officer of a State. 
(3) LOCAL EDUCATIONAL AGENCY.—The term 
‘‘local educational agency’’ has the meaning given to 
such term by section 14101 of the Elementary and 
Secondary Education Act of 1965. 
(4) PUBLIC SCHOOL FACILITY.—The term pub-
lic school facility shall not include— 
(A) any stadium or other facility primarily 
used for athletic contests or exhibitions, or 
other events for which admission is charged to 
the general public; or 
(B) any facility which is not owned by a 
State or local government or any agency or in-
strumentality of a State or local government. 
(5) 
QUALIFIED
SCHOOL
CONSTRUCTION 
BOND.—The term ‘‘qualified school construction 
bond’’ means any bond issued as part of an issue 
if— 
(A) 95 percent or more of the proceeds of 
such issue are to be used for the construction, 
rehabilitation, or repair of a public school facil-
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ity or for the acquisition of land on which such 
a facility is to be constructed with part of the 
proceeds of such issue; 
(B) the bond is issued by a State entity or 
local government; 
(C) the issuer designates such bonds for 
purposes of this section; and 
(D) the term of each bond which is part of 
such issue does not exceed 20 years. 
(6) STABILIZATION
FUND.—The term ‘‘sta-
bilization fund’’ means the stabilization fund estab-
lished under section 5302 of title 31, United States 
Code. 
(7) STATE.—The term ‘‘State’’ means each of 
the several States of the United States, the District 
of Columbia, the Commonwealth of Puerto Rico, the 
United States Virgin Islands, Guam, American 
Samoa, the Commonwealth of the Northern Mariana 
Islands, the Republic of the Marshall Islands, the 
Federated States of Micronesia, and the Republic of 
Palau. 
SEC. 4. LOANS FOR SCHOOL CONSTRUCTION BOND INTER-
EST PAYMENTS. 
(a) LOAN AUTHORITY.— 
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(1) IN GENERAL.—From funds made available 
to a State under section 5(b) the State shall make 
loans to State entities or local governments within 
the State to enable the entities and governments to 
make annual interest payments on qualified school 
construction bonds that are issued by the entities 
and governments not later than December 31, 2003. 
(2) REQUESTS.—The Governor of each State 
desiring assistance under this Act shall submit a re-
quest to the Secretary of the Treasury at such time 
and in such manner as the Secretary of the Treas-
ury may require. 
(b) LOAN REPAYMENT.— 
(1) IN GENERAL.—Subject to paragraph (2), a 
State entity or local government that receives a loan 
under this Act shall repay to the stabilization fund 
the amount of the loan, plus interest, at the average 
prime lending rate for the year in which the bond 
is issued, not to exceed 4.5 percent. 
(2) EXCEPTION.—A State entity or local gov-
ernment shall not repay the amount of a loan made 
under this Act, plus interest, and the interest on a 
loan made under this Act shall not accrue, prior to 
January 1, 2008, unless the amount appropriated to 
carry out part B of the Individuals with Disabilities 
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Education Act (20 U.S.C. 1411 et seq.) for any fis-
cal year prior to fiscal year 2009 is sufficient to 
fully fund such part for the fiscal year at the origi-
nally promised level, which promised level would pro-
vide to each State 40 percent of the average per- 
pupil expenditure for providing special education and 
related services for each child with a disability in the 
State. 
(c) FEDERAL RESPONSIBILITIES.—The Secretary of 
the Treasury— 
(1) shall be responsible for ensuring that funds 
provided under this Act are properly distributed; 
(2) shall ensure that funds provided under this 
Act only are used to pay the interest on qualified 
school construction bonds; and 
(3) shall not have authority to approve or dis-
approve school construction plans assisted pursuant 
to this Act, except to ensure that funds made avail-
able under this Act are used only to supplement, and 
not supplant, the amount of school construction, re-
habilitation, and repair in the State that would have 
occurred in the absence of such funds. 
SEC. 5. AMOUNTS AVAILABLE TO EACH STATE. 
(a) 
RESERVATION
FOR
INDIANS.—From 
$20,000,000,000 of the funds in the stabilization fund, the 
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