I
107TH CONGRESS
1ST SESSION
H. R. 1430
To provide States with funds to support State, regional, and local school
construction.
IN THE HOUSE OF REPRESENTATIVES
APRIL 4, 2001
Mrs. BIGGERT introduced the following bill; which was referred to the
Committee on Education and the Workforce
A BILL
To provide States with funds to support State, regional,
and local school construction.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ‘‘Building, Renovating,
Improving, and Constructing Kids’ Schools Act’’.
SEC. 2. FINDINGS.
Congress makes the following findings:
(1) According to a 1999 issue brief prepared by
the National Center for Education Statistics, the 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, re-
gional, and local entities in addressing school con-
struction, renovation, and repair needs by providing
low-interest loans for purposes of paying interest on
related bonds and by supporting other State-admin-
istered school construction programs.
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 (20 U.S.C. 8801).
(4) PUBLIC
SCHOOL
FACILITY.—The term
‘‘public school facility’’ shall not include—
(A) any stadium or other facility primarily
used for athletic contests or exhibitions, or
other events for which admission is charged to
the general public; or
(B) any facility that is not owned by a
State or local government or any agency or in-
strumentality of a State or local government.
(5) 
QUALIFIED
SCHOOL
CONSTRUCTION
BOND.—The term ‘‘qualified school construction
bond’’ means any bond (or portion of a bond) issued
as part of an issue if—
(A) 95 percent or more of the proceeds at-
tributable to such bond (or portion) are to be
used for the construction, rehabilitation, or re-
pair of a public school facility or for the acqui-
sition of land on which such a facility is to be
constructed with part of the proceeds;
(B) the bond is issued by a State, regional,
or local entity, with bonding authority; and
(C) the issuer designates such bond (or
portion) for purposes of this section.
(6) STABILIZATION
FUND.—The term ‘‘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 AND OTHER SUPPORT.
(a) LOAN AUTHORITY AND OTHER SUPPORT.—
(1) LOANS
AND
STATE-ADMINISTERED
PRO-
GRAMS.—
(A) IN GENERAL.—Except as provided in
subparagraph (B), from funds made available
to a State under section 5(b) the State, in con-
sultation with the State educational agency—
(i) shall use not less than 50 percent
of the funds to make loans to State, re-
gional, or local entities within the State to
enable the entities to make annual interest
payments on qualified school construction
bonds that are issued by the entities not
later than December 31, 2004; and
(ii) may use not more than 50 percent
of the funds to support State revolving
fund programs or other State-administered
programs that assist State, regional, and
local entities within the State in paying for
the cost of construction, rehabilitation, re-
pair, or acquisition described in section
3(5)(A).
(B) STATES WITH RESTRICTIONS.—If, on
the date of enactment of this Act, a State has
in effect a law that prohibits the State from
making the loans described in subparagraph
(A)(i), the State, in consultation with the State
educational agency, may use the funds de-
scribed in subparagraph (A) to support the pro-
grams described in subparagraph (A)(ii).
(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.
(3) PRIORITY.—In selecting entities to receive
funds under paragraph (1) for projects involving
construction, rehabilitation, repair, or acquisition of
land for schools, the State shall give priority to enti-
ties with projects for schools with greatest need, as
determined by the State. In determining the schools
with greatest need, the State shall take into consid-
eration whether a school—
(A) is among the schools that have the
greatest numbers or percentages of children
whose education imposes a higher than average
cost per child, such as—
(i) children living in areas with high
concentrations of low-income families;
(ii) children from low-income families;
and
(iii) children living in sparsely popu-
lated areas;
(B) has inadequate school facilities and a
low level of resources to meet the need for
school facilities;
(C) is located in an area experiencing high
population growth; or
(D) meets such criteria as the State may
determine to be appropriate.
(b) REPAYMENT.—
(1) IN GENERAL.—Subject to paragraph (2), a
State that uses funds made available under section
5(b) to make a loan or support a State-administered
program under subsection (a)(1) shall repay to the
stabilization fund the amount of the loan or support,
plus interest, at an annual rate of 4.5 percent. A
State shall not be required to begin making such re-
payment until the year immediately following the
15th year for which the State is eligible to receive
annual distributions from the fund (which shall be
the final year for which the State shall be eligible for
such a distribution under this Act). The amount of
such loan or support shall be fully repaid during the
10-year period beginning on the expiration of the eli-
gibility of the State under this Act.
(2) EXCEPTIONS.—
(A) IN
GENERAL.—The interest on the
amount made available to a State under section
5(b) shall not accrue, prior to January 1, 2007,
unless the amount appropriated to carry out
part B of the Individuals with Disabilities Edu-
cation Act (20 U.S.C. 1411 et seq.) for any fis-
cal year prior to fiscal year 2007 is sufficient
to fully fund such part for the fiscal year at the
originally promised level, which promised level
would provide to each State 40 percent of the
average per-pupil expenditure for providing spe-
cial education and related services for each
child with a disability in the State.
(B) APPLICABLE INTEREST RATE.—Effec-
tive January 1, 2007, the applicable interest
rate that will apply to an amount made avail-
able to a State under section 5(b) shall be—
(i) 0 percent with respect to years in
which the amount appropriated to carry
out part B of the Individuals with Disabil-
ities Education Act (20 U.S.C. 1411 et
seq.) is not sufficient to provide to each
State at least 20 percent of the average
per-pupil expenditure for providing special
education and related services for each
child with a disability in the State;
(ii) 2.5 percent with respect to years
in which the amount described in clause (i)
is not sufficient to provide to each State at
least 30 percent of such average per-pupil
expenditure;
(iii) 3.5 percent with respect to years
in which the amount described in clause (i)
is not sufficient to provide to each State at
least 40 percent of such average per-pupil
expenditure; and
(iv) 4.5 percent with respect to years
in which the amount described in clause (i)
is sufficient to provide to each State at
least 40 percent of such average per-pupil
expenditure.
(c) FEDERAL RESPONSIBILITIES.—The Secretary of
the Treasury and the Secretary of Education—
(1) jointly shall be responsible for ensuring that
funds provided under this Act are properly distrib-
uted;
(2) shall ensure that funds provided under this
Act are used only to pay for—
(A) the interest on qualified school con-
struction bonds; or
(B) 
a 
cost 
described 
in 
subsection
(a)(1)(A)(ii); 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, and acquisition of land for
school facilities, in the State that would have oc-
curred in the absence of such funds.
SEC. 5. AMOUNTS AVAILABLE TO EACH STATE.
(a) RESERVATION FOR INDIANS.—
(1) IN
GENERAL.—From $20,000,000,000 of
the funds in the stabilization fund, the Secretary of
the Treasury shall make available $400,000,000 to
provide assistance to Indian tribes.
(2) USE OF FUNDS.—An Indian tribe that re-
ceives assistance under paragraph (1)—
(A) shall use not less than 50 percent of
the assistance for a loan to enable the Indian
tribe to make annual interest payments on
qualified school construction bonds, in accord-
ance with the requirements of this Act that the
Secretary of the Treasury determines to be ap-
propriate; and
(B) may use not more than 50 percent of
the assistance to support tribal revolving fund
programs or other tribal-administered programs
that assist tribal governments in paying for the
cost of construction, rehabilitation, repair, or
acquisition described in section 3(5)(A), in ac-
cordance with the requirements of this Act that
the Secretary of the Treasury determines to be
appropriate.
(b) AMOUNTS AVAILABLE.—
(1) IN
GENERAL.—Subject to paragraph (3)
and from $20,000,000,000 of the funds in the sta-
bilization fund that are not reserved under sub-
section (a), the Secretary of the Treasury shall make
available to each State submitting a request under
section 4(a)(2) an amount that bears the same rela-
tion to such remainder as the amount the State re-
ceived under part A of title I of the Elementary and
Secondary Education Act of 1965 (20 U.S.C. 6311
et seq.) for fiscal year 2001 bears to the amount re-
ceived by all States under such part for such year.
(2) DISBURSAL.—The Secretary of the Treas-
ury shall disburse the amount made available to a
State under paragraph (1) or (3), on an annual
basis, during the period beginning on October 1,
2001, and ending September 30, 2018.
(c) NOTIFICATION.—The Secretary of the Treasury
and the Secretary of Education jointly shall notify each
State of the amount of funds the State may receive for
loans and other support under this Act.
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