I
106TH CONGRESS
1ST SESSION
H. R. 2975
To establish grant programs to provide opportunities for adolescents, to
establish training programs for teachers, and to establish job training
courses at community colleges, to amend the Elementary and Secondary
Education Act of 1965 to reduce class size, and for other purposes.
IN THE HOUSE OF REPRESENTATIVES
SEPTEMBER 29, 1999
Ms. HOOLEY of Oregon introduced the following bill; which was referred to
the Committee on Education and the Workforce, and in addition to the
Committee on Ways and Means, for a period to be subsequently deter-
mined by the Speaker, in each case for consideration of such provisions
as fall within the jurisdiction of the committee concerned
A BILL
To establish grant programs to provide opportunities for
adolescents, to establish training programs for teachers,
and to establish job training courses at community col-
leges, to amend the Elementary and Secondary Edu-
cation Act of 1965 to reduce class size, and for other
purposes.
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 ‘‘Youth Education De-
velopment Act of 1999’’.
SEC. 2. DEFINITIONS.
In this Act:
(1) ADOLESCENT.—The term ‘‘adolescent’’
means an individual who is less than 16 years of age
but not less than 10 years of age.
(2) 
COMMISSIONER.—The 
term 
‘‘Commis-
sioner’’ means the Commissioner of the Administra-
tion for Children, Youth, and Families in the De-
partment of Health and Human Services.
(3) COMMUNITY-BASED
ORGANIZATION.—The
term ‘‘community-based organization’’ has the
meaning given such term in section 101(7) of the
Workforce Investment Act of 1998 (29 U.S.C.
2801(7)).
(4) COMMUNITY COLLEGE.—The term ‘‘commu-
nity college’’ has the meaning given such term in
section 312(e) of the Higher Education Act of 1965
(20 U.S.C. 1058(e)).
(5) ELEMENTARY SCHOOL.—The term ‘‘elemen-
tary school’’ has the meaning given such term in
section 14101(14) of the Elementary and Secondary
Education Act of 1965 (20 U.S.C. 8801(14)).
(6) INSTITUTION OF HIGHER EDUCATION.—The
term ‘‘institution of higher education’’ has the
meaning given such term in section 101(a) of the
Higher Education Act of 1965 (20 U.S.C. 1001(a)).
(7) LOCAL EDUCATIONAL AGENCY.—The term
‘‘local educational agency’’ has the meaning given
such term in section 14101(18) of the Elementary
and Secondary Education Act of 1965 (20 U.S.C.
8801(18)).
(8) SECONDARY
SCHOOL.—The term ‘‘sec-
ondary school’’ has the meaning given such term in
section 14101(25) of the Elementary and Secondary
Education Act of 1965 (20 U.S.C. 8801(25)).
(9) SECRETARY.—The term ‘‘Secretary’’ means
the Secretary of Education.
TITLE I—GRANT PROGRAM TO
PROVIDE 
OPPORTUNITIES
FOR ADOLESCENTS
SEC. 101. GENERAL PROVISIONS.
(a) AUTHORITY TO MAKE GRANTS.—The Commis-
sioner of the Administration for Children, Youth, and
Families may make grants on a competitive basis to public
agencies and nonprofit private organizations for programs
and activities described in sections 102, 103, 104, and
105. In making such grants, the Commissioner shall give
special consideration to agencies and organizations that
propose to carry out such projects and activities jointly
with one or more other such agencies or organizations.
(b) LIMITATIONS.—
(1) MAXIMUM
AMOUNT
OF
GRANT.—A grant
made under subsection (a) in any fiscal year to a
particular agency or organization may not exceed
$500,000.
(2) MAXIMUM NUMBER OF GRANTS.—Not more
than 3 grants may be made under subsection (a) to
carry out a particular program or activity.
(c) ELIGIBILITY REQUIREMENTS.—To be eligible to
receive a grant under subsection (a), a public agency or
nonprofit private organization shall submit an application
to the Commissioner at such time, in such form, and con-
taining such assurances and information as the Commis-
sioner may require by rule, including—
(1) an assurance that such grant will be ex-
pended to pay not more than 70 percent of the cost
(including the value of in-kind contributions to the
cost) of the program or activity for which such grant
is requested;
(2) an assurance that not more than 10 percent
of such grant will be used to pay administrative
costs (other than staff training) incurred to carry
out such program or activity;
(3) an assurance that not less than 25 percent
of such grant will be used to provide training (espe-
cially training in adolescent development) to staff
who will administer such program or activity; and
(4) information demonstrating that—
(A) the applicant—
(i) intends to promote positive behav-
ior, and to prevent negative outcomes, in
adolescents;
(ii) empowers adolescents, values all
adolescents, and actively engages adoles-
cents in the development and operation of
such program or activity;
(iii) has established clear goals and
objectives for such program or activity and
has identified a method to evaluate the ef-
fectiveness of such program or activity;
and
(iv) will involve in carrying out such
program or activity, committed staff and
volunteers who possess appropriate skills
and knowledge; and
(B) such program or activity will—
(i) reinforce the role of the family in,
and the contribution of family members to,
the positive development of adolescents;
(A) to increase adolescents’ awareness of
their responsibility for their health; and
(B) to promote positive health behaviors;
(4) to carry out mental health programs, espe-
cially those designed to reduce the incidence of ado-
lescent depression and suicide; and
(5) such other programs and activities as the
Commissioner considers to be appropriate.
SEC. 104. GRANTS TO DEVELOP LIFE SKILLS.
The Commissioner may make grants under section
101(a) to develop the social competence, life skills, and
leadership skills of adolescents, and to promote the appli-
cation of such skills through community service and com-
munity action. Such grants may be used to carry out—
(1) programs that prepare adolescents for
adulthood, including employment, parenthood, and
civic participation;
(2) programs that teach basic life skills, includ-
ing interpersonal communication, planning, goal set-
ting, decision making, problem solving, conflict reso-
lution, and cognitive strategies for resisting peer and
media pressure;
(3) programs that teach social responsibility
and leadership skills, and that actively promote the
application of such skills through community prob-
lem solving and community service; and
(4) such other programs as the Commissioner
considers to be appropriate.
SEC. 105. GRANTS TO IMPROVE FAMILY RELATIONSHIPS.
The Commissioner may make grants under section
101(a) to carry out programs to provide nonfinancial sup-
port and training to families of adolescents. Such grants
may be used—
(1) to carry out supportive and educational ac-
tivities for families of adolescents, including courses
and workshops that teach parenting skills that are
most effective in promoting healthy adolescent devel-
opment;
(2) to carry out activities that provide opportu-
nities for parents and adolescents to engage in mu-
tually enjoyable and educational pursuits, such as
recreation, community and volunteer service, and
communication workshops;
(3) to provide counseling to families of adoles-
cents to enable adolescents, their siblings, and their
parents to resolve problems in family relationships;
and
(4) to carry out such other activities as the
Commissioner considers to be appropriate.
SEC. 106. AUTHORIZATION OF APPROPRIATIONS.
(a) FOR GRANTS TO IMPROVE EDUCATIONAL PER-
FORMANCE.—There are authorized to be appropriated
$45,000,000 for fiscal year 2000, and such sums as may
be necessary for each of the fiscal years 2001, 2002, 2003,
and 2004, to make grants under section 101(a) for the
purposes described in section 102.
(b) FOR GRANTS TO IMPROVE HEALTH AND FIT-
NESS.—There 
are 
authorized 
to 
be 
appropriated
$45,000,000 for fiscal year 2000, and such sums as may
be necessary for each of the fiscal years 2001, 2002, 2003,
and 2004, to make grants under section 101(a) for the
purposes described in section 103.
(c) FOR GRANTS TO DEVELOP LIFE SKILLS.—There
are authorized to be appropriated $45,000,000 for fiscal
year 2000, and such sums as may be necessary for each
of the fiscal years 2001, 2002, 2003, and 2004, to make
grants under section 101(a) for the purposes described in
section 104.
(d) FOR GRANTS TO IMPROVE FAMILY RELATION-
SHIPS.—There 
are 
authorized 
to 
be 
appropriated
$45,000,000 for fiscal year 2000, and such sums as may
be necessary for each of the fiscal years 2001, 2002, 2003,
and 2004, to make grants under section 101(a) for the
purposes described in section 105.
TITLE II—GRANT PROGRAM TO
ESTABLISH 
TRAINING 
PRO-
GRAMS FOR TEACHERS
SEC. 201. AUTHORIZATION.
(a) IN GENERAL.—The Secretary shall make grants
to eligible entities to establish training programs to up-
grade the skills of teachers at elementary schools and sec-
ondary schools.
(b) PERIOD OF GRANT.—The provision of payments
under a grant under subsection (a) may extend over a pe-
riod of not more than 5 fiscal years and shall be subject
to annual approval by the Secretary and subject to the
availability of appropriations for the fiscal year involved
to make the payments.
SEC. 202. APPLICATION.
(a) IN GENERAL.—To receive a grant under section
201(a), an eligible entity shall submit an application to
the Secretary at such time, in such form, and containing
such information as the Secretary may reasonably require.
(b) ASSURANCES.—Such application shall include as-
surances that the eligible entity—
(1) has developed or shall develop a plan, in-
cluding an evaluation component, for the training
program established pursuant to section 203(a);
(2) shall use Federal funds received from a
grant under section 201(a) to supplement, not sup-
plant, non-Federal funds that would otherwise be
available for projects funded under such section; and
(3) shall provide, with respect to any fiscal year
in which such entity receives funds from a grant
under section 201(a), non-Federal funds in an
amount equal to 30 percent of funds from such
grant, an in kind contribution equivalent to such
percent (as determined by the Secretary), or a com-
bination thereof, for the purpose of carrying out the
training program established pursuant to section
203(a).
SEC. 203. USE OF FUNDS.
(a) TRAINING PROGRAM.—Grants made under sec-
tion 201(a) may be used by an eligible entity only for es-
tablishing a training program to—
(1) provide teachers at elementary schools and
secondary schools the opportunity to participate in
teacher internships which are related to the course
of study taught by such teachers; and
(2) provide education courses for such teachers
related to the course of study taught by such teach-
ers.
(b) CONDUCT OF PROGRAM.—In conducting the pro-
gram established pursuant to subsection (a), an eligible
entity shall—
(1) require a teacher participating in the pro-
gram to sign a learning contract specifying the
length of the internship or education course, the de-
sired results of such internship or education course,
and the remuneration to be provided the teacher for
participation in the program; and
(2) ensure that no jobs are lost or employees
displaced as a result of the program.
SEC. 204. REPORTS.
An eligible entity that receives a grant under section
201(a) shall submit to the Secretary in each fiscal year
in which the entity receives amounts from such grant a
report that describes the training program established
pursuant to section 203(a), the number of teachers served
in the program, and an evaluation of the program.
SEC. 205. ALLOCATION REQUIREMENT.
The Secretary may not make grants under section
201(a) to any eligible entity in an amount totaling more
than 5 percent of amounts appropriated under section
207.
SEC. 206. ELIGIBLE ENTITY DEFINED.
For purposes of this title, the term ‘‘eligible entity’’
means a consortium consisting of—
(1) local educational agencies or institutions of
higher education, or both;
(2) a teacher association;
(3) representatives of business and industry as-
sociations; and
(4) labor organizations.
SEC. 207. AUTHORIZATION OF APPROPRIATIONS.
(a) IN GENERAL.—There is authorized to be appro-
priated for fiscal year 2000 $25,000,000 and such sums
as may be necessary for each of the fiscal years 2001,
2002, 2003, and 2005 to carry out section 201(a).
(b) AVAILABILITY.—Amounts appropriated under
subsection (a) shall remain available until expended.
TITLE III—GRANT PROGRAM TO
ESTABLISH 
JOB 
TRAINING
COURSES 
AT 
COMMUNITY
COLLEGES
SEC. 301. AUTHORIZATION.
(a) IN GENERAL.—The Secretary shall make grants
to community colleges to establish job training courses at
such colleges.
(b) PERIOD OF GRANT.—The provision of payments
under a grant under subsection (a) may extend over a pe-
riod of not more than 5 fiscal years and shall be subject
to annual approval by the Secretary and subject to the
availability of appropriations for the fiscal year involved
to make the payments.
SEC. 302. APPLICATION.
(a) IN GENERAL.—To receive a grant under section
301(a), a community college shall submit an application
to the Secretary at such time, in such form, and con-
taining such information as the Secretary may reasonably
require.
(b) ASSURANCES.—Such application shall include as-
surances that the community college—
(1) has developed or shall develop a plan, in-
cluding an evaluation component, for projects estab-
lished pursuant to section 303;
(2) shall use Federal funds received from a
grant under section 301(a) to supplement, not sup-
plant, non-Federal funds that would otherwise be
available for projects funded under such section; and
(3) shall provide, with respect to any fiscal year
in which such college receives funds from a grant
under section 301(a), non-Federal funds in an
amount equal to 30 percent of funds from such
grant, an in kind contribution equivalent to such
percent (as determined by the Secretary), or a com-
bination thereof, for the purpose of carrying out
projects established pursuant to section 303.
SEC. 303. USE OF FUNDS.
Grants made under section 301(a) may be used by
a community college only for—
(1) assessing the education and training needs
of the regional labor market in which the community
college is located;
(2) developing job training courses to meet the
needs of the regional labor market, including in-
structional materials and competency-based assess-
ment standards;
(3) providing inservice training for teachers of
such courses; and
(4) purchasing equipment for use in such
courses.
SEC. 304. REPORTS.
A community college that receives a grant under sec-
tion 301(a) shall submit to the Secretary in each fiscal
year in which the college receives amounts from such grant
a report that describes the projects established pursuant
to section 303, the number of individuals served by the
projects, and an evaluation of the projects.
SEC. 305. ALLOCATION REQUIREMENT.
The Secretary may not make grants under section
301(a) to any eligible entity in an amount totaling more
than 20 percent of amounts appropriated under section
306.
SEC. 306. AUTHORIZATION OF APPROPRIATIONS.
(a) IN GENERAL.—There is authorized to be appro-
priated for fiscal year 2000, $45,000,000 and such sums
as may be necessary for each of the fiscal years 2001,
2002, 2003 and 2005 to carry out section 301(a).
(b) AVAILABILITY.—Amounts appropriated under
subsection (a) shall remain available until expended.
TITLE IV—CLASS SIZE
REDUCTION
SEC. 401. CLASS SIZE REDUCTION.
Title VI of the Elementary and Secondary Education
Act of 1965 (20 U.S.C. 7301 et seq.) is amended by add-
ing at the end the following:
‘‘PART E—CLASS SIZE REDUCTION
‘‘SEC. 6601. SHORT TITLE.
‘‘This part may be cited as the ‘Class Size Reduction
and Teacher Quality Act of 1999’.
‘‘SEC. 6604. PROGRAM AUTHORIZED.
‘‘(a) AUTHORIZATION OF APPROPRIATIONS.—For the
purpose of carrying out this part, there are authorized to
be appropriated, $1,400,000,000 for fiscal year 2000,
$1,500,000,000 for fiscal year 2001, $1,700,000,000 for
fiscal year 2002, $1,735,000,000 for fiscal year 2003,
$2,300,000,000 for fiscal year 2004, and $2,800,000,000
for fiscal year 2005.
‘‘(b) ALLOTMENTS.—
‘‘(1) IN GENERAL.—From the amount appro-
priated under subsection (a) for a fiscal year the
Secretary—
‘‘(A) shall make a total of 1 percent avail-
able to the Secretary of the Interior (on behalf
of the Bureau of Indian Affairs) and the out-
lying areas for activities that meet the purpose
of this part; and
‘‘(B) shall allot to each State the same
percentage of the remaining funds as the per-
centage it received of funds allocated to States
for the previous fiscal year under section 1122
or section 2202(b), whichever percentage is
greater, except that such allotments shall be
ratably decreased as necessary.
‘‘(2) DEFINITION OF STATE.—In this part the
term ‘State’ means each of the several States of the
United States, the District of Columbia and the
Commonwealth of Puerto Rico.
‘‘(3) STATE-LEVEL
EXPENSES.—Each State
may use not more than a total of 1⁄2 of 1 percent
of the amount the State receives under this part, or
$50,000, whichever is greater, for a fiscal year, for
the administrative costs of the State educational
agency.
‘‘(c) WITHIN STATE DISTRIBUTION—
‘‘(1) IN GENERAL.—Each State that receives an
allotment under this section shall distribute the
amount of the allotted funds that remain after using
funds in accordance with subsection (b)(3) to local
educational agencies in the State, of which—
‘‘(A) 80 percent of such remainder shall be
allocated to such local educational agencies in
proportion to the number of children, aged 5 to
17, who reside in the school district served by
such local educational agency and are from
families with incomes below the poverty line (as
defined by the Office of Management and
Budget and revised annually in accordance with
section 673(2) of the Community Services
Block Grant Act (42 U.S.C. 9902(2)) applica-
ble to a family of the size involved) for the most
recent fiscal year for which satisfactory data is
available compared to the number of such indi-
viduals who reside in the school districts served
by all the local educational agencies in the State
for that fiscal year, except that a State may ad-
just such data; and
‘‘(B) 20 percent of such remainder shall be
allocated to such local educational agencies in
accordance with the relative enrollments of chil-
dren, aged 5 to 17, in public and private non-
profit elementary schools and secondary schools
in the school districts within the boundaries of
such agencies.
‘‘(2) AWARD
RULE.—Notwithstanding para-
graph (1), if the award to a local educational agency
under this section is less than the starting salary for
a new teacher in that agency, the State shall not
make the award unless—
‘‘(A) the local educational agency agrees to
form a consortium with not less than 1 other
local educational agency for the purpose of re-
ducing class size; or
‘‘(B) the local educational agency agrees to
supplement the award with non-Federal funds
sufficient to pay the cost of hiring a teacher.
‘‘SEC. 6605. USE OF FUNDS.
‘‘(a) IN GENERAL.—Each local educational agency
that receives funds under this part shall use such funds
to carry out effective approaches to reducing class size
with highly qualified teachers to improve educational
achievement for both regular and special-needs children,
with particular consideration given to reducing class size
in the early elementary grades for which some research
has shown class size reduction is most effective.
‘‘(b) CLASS REDUCTION—
‘‘(1) IN GENERAL.—Each such local educational
agency may pursue the goal of reducing class size
through—
‘‘(A) recruiting, hiring, and training cer-
tified regular and special education teachers
and teachers of special-needs children, including
teachers certified through State and local alter-
native routes;
‘‘(B) testing new teachers for academic
content knowledge, and to meet State certifi-
cation requirements that are consistent with
title II of the Higher Education Act of 1965;
and
‘‘(C) providing professional development to
teachers, including special education teachers
and teachers of special-needs children, con-
sistent with title II of the Higher Education
Act of 1965.
‘‘(2) RESTRICTION.—A local educational agency
may use not more than a total of 15 percent of the
funds received under this part for each of the fiscal
years 2000 through 2003 to carry out activities de-
scribed in subparagraphs (B) and (C) of paragraph
(1), and may not use any funds received under this
part for fiscal year 2004 or 2005 for those activities.
‘‘(3) SPECIAL RULE.—A local educational agen-
cy that has already reduced class size in the early
grades to 18 or fewer children may use funds re-
ceived under this part—
‘‘(A) to make further class-size reductions
in grades 1 through 3;
‘‘(B) to reduce class size in kindergarten
or other grades; or
‘‘(C) to carry out activities to improve
teacher quality, including professional develop-
ment activities.
‘‘(c) SUPPLEMENT NOT SUPPLANT.—A local edu-
cational agency shall use funds under this part only to
supplement, and not to supplant, State and local funds
that, in the absence of such funds, would otherwise be
spent for activities under this part.
‘‘(d) PROHIBITION.—No funds made available under
this part may be used to increase the salaries of or provide
benefits to (other than participation in professional devel-
opment and enrichment programs) teachers who are, or
have been, employed by the local educational agency.
‘‘(e) PROFESSIONAL DEVELOPMENT.—If a local edu-
cational agency uses funds made available under this part
for professional development activities, the agency shall
ensure the equitable participation of private nonprofit ele-
mentary and secondary schools in such activities. Section
6402 shall not apply to other activities under this section.
‘‘(f) ADMINISTRATIVE
EXPENSES.—A local edu-
cational agency that receives funds under this part may
use not more than 3 percent of such funds for local admin-
istrative expenses.
‘‘SEC. 6606. COST-SHARING REQUIREMENT.
‘‘(a) FEDERAL SHARE.—The Federal share of the
cost of activities carried out under this part—
‘‘(1) may be up to 100 percent in local edu-
cational agencies with child-poverty levels of 50 per-
cent or greater; and
‘‘(2) shall be no more than 65 percent for local
educational agencies with child-poverty rates of less
than 50 percent.
‘‘(b) LOCAL SHARE.—A local educational agency
shall provide the non-Federal share of a project under this
part through cash expenditures from non-Federal sources,
except that if an agency has allocated funds under section
1113(c) to one or more schoolwide programs under section
1114, it may use those funds for the non-Federal share
of activities under this program that benefit those
schoolwide programs, to the extent consistent with section
1120A(c) and notwithstanding section 1114(a)(3)(B).
‘‘SEC. 6607. REQUEST FOR FUNDS.
‘‘Each local educational agency that desires to receive
funds under this part shall include in the application sub-
mitted under section 6303 a description of the agency’s
program under this part to reduce class size by hiring ad-
ditional highly qualified teachers.
‘‘SEC. 6608. REPORTS.
‘‘(a) STATE.—Each State receiving funds under this
part shall report on activities in the State under this sec-
tion, consistent with section 6202(a)(2).
‘‘(b) SCHOOL.—Each school receiving assistance
under this part, or the local educational agency serving
that school, shall produce an annual report to parents, the
general public, and the State educational agency, in easily
understandable language, regarding student achievement
that is a result of hiring additional highly qualified teach-
ers and reducing class size.’’.
TITLE V—SCHOOL
MODERNIZATION
SEC. 501. CREDIT TO HOLDERS OF QUALIFIED PUBLIC
SCHOOL CONSTRUCTION BONDS.
(a) IN GENERAL.—Subpart B of part IV of sub-
chapter A of chapter 1 of the Internal Revenue Code of
1986 is amended by adding at the end the following new
section:
‘‘SEC. 30B. CREDIT TO HOLDERS OF QUALIFIED PUBLIC
SCHOOL CONSTRUCTION BONDS.
‘‘(a) ALLOWANCE OF CREDIT.—In the case of a tax-
payer who holds a qualified school construction bond on
a credit allowance date of such bond which occurs during
the taxable year, there shall be allowed as a credit against
the tax imposed by this chapter for such taxable year an
amount equal to the sum of the credits determined under
subsection (b) with respect to credit allowance dates dur-
ing such year on which the taxpayer holds such bond.
‘‘(b) AMOUNT OF CREDIT.—
‘‘(1) IN GENERAL.—The amount of the credit
determined under this subsection with respect to any
credit allowance date for a qualified school construc-
tion bond is 25 percent of the annual credit deter-
mined with respect to such bond.
‘‘(2) ANNUAL CREDIT.—The annual credit de-
termined with respect to any qualified school con-
struction bond is the product of—
‘‘(A) the applicable credit rate, multiplied
by
‘‘(B) the outstanding face amount of the
bond.
‘‘(3) APPLICABLE CREDIT RATE.—For purposes
of paragraph (1), the applicable credit rate with re-
spect to an issue is the rate equal to an average
market yield (as of the day before the date of
issuance of the issue) on outstanding long-term cor-
porate debt obligations (determined under regula-
tions prescribed by the Secretary).
‘‘(4) SPECIAL RULE FOR ISSUANCE AND RE-
DEMPTION.—In the case of a bond which is issued
during the 3-month period ending on a credit allow-
ance date, the amount of the credit determined
under this subsection with respect to such credit al-
lowance date shall be a ratable portion of the credit
otherwise determined based on the portion of the 3-
month period during which the bond is outstanding.
A similar rule shall apply when the bond is re-
deemed.
‘‘(c) QUALIFIED SCHOOL CONSTRUCTION BOND.—
For purposes of this section—
‘‘(1) IN GENERAL.—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-
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 or local
government within the jurisdiction of which
such school is located,
‘‘(C) the issuer designates such bond for
purposes of this section, and
‘‘(D) the term of each bond which is part
of such issue does not exceed 15 years.
‘‘(2) LIMITATION ON AMOUNT OF BONDS DES-
IGNATED.—The maximum aggregate face amount of
bonds issued during any calendar year which may be
designated under paragraph (1) by any issuer shall
not exceed the limitation amount allocated under
paragraph (3) for such calendar year to such issuer.
‘‘(3) NATIONAL
LIMITATION
ON
AMOUNT
OF
BONDS DESIGNATED.—There is a national qualified
school construction bond limitation for each calendar
year. Such limitation is—
‘‘(A) $12,500,000,000 for 2000,
‘‘(B) $12,500,000,000 for 2001, and
‘‘(C) except as provided in paragraph (5),
zero after 2001.
‘‘(4) ALLOCATION
OF
LIMITATION
AMONG
STATES.—
‘‘(A) IN GENERAL.—The limitation appli-
cable under paragraph (3) for any calendar
year shall be allocated among the States by the
Secretary. The amount allocated to a State for
a calendar year shall be equal to the sum of—
‘‘(i) the amount allocated to the State
for such year under subparagraph (B), and
‘‘(ii) the amount allocated to the State
for such year under subparagraph (C).
The limitation amount allocated to a State
under the preceding sentence shall be allocated
by the State education agency to issuers within
such State and such allocations may be made
only if there is an approved State application.
‘‘(B) ALLOCATION
ON
BASIS
OF
BASIC
GRANTS UNDER TITLE I OF THE ELEMENTARY
AND SECONDARY EDUCATION ACT OF 1965.—
One-half of the limitation applicable under
paragraph (3) for any calendar year shall be al-
located among the States in proportion to the
respective amounts each such State received for
basic grants under subpart 2 of part A of title
I of the Elementary and Secondary Education
Act of 1965 (20 U.S.C. 6331 et seq.) for the
most recent fiscal year ending before such cal-
endar year.
‘‘(C) ALLOCATION ON BASIS OF TOTAL EL-
EMENTARY AND SECONDARY SCHOOL AGE POP-
ULATION.—One-half of the limitation applicable
under paragraph (3) for any calendar year shall
be allocated among the States in proportion to
the respective numbers of children in each State
who have attained age 5 but not age 18 for the
most recent fiscal year ending before such cal-
endar year.
‘‘(D) 
MINIMUM
ALLOCATIONS
TO
STATES.—
‘‘(i) IN
GENERAL.—The Secretary
shall adjust the allocations under this
paragraph for any calendar year for each
State to the extent necessary to ensure
that the amount allocated to such State
under this paragraph for such year is not
less than an amount equal to such State’s
minimum percentage of one-half of the
amount to be allocated under subpara-
graph (A) for the calendar year.
‘‘(ii) 
MINIMUM
PERCENTAGE.—A
State’s minimum percentage for any cal-
endar year is the minimum percentage de-
scribed in section 1124(d) of the Elemen-
tary and Secondary Education Act of 1965
(20 U.S.C. 6334(d)) for such State for the
most recent fiscal year ending before such
calendar year.
‘‘(E) ALLOCATIONS TO CERTAIN POSSES-
SIONS.—The amount to be allocated under sub-
paragraph (A) to any possession of the United
States other than Puerto Rico shall be the
amount which would have been allocated if all
allocations under subparagraph (A) were made
on the basis of respective populations of individ-
uals below the poverty line (as defined by the
Office of Management and Budget). In making
other allocations, the amount to be allocated
under subparagraph (A) shall be reduced by the
aggregate amount allocated under this subpara-
graph to possessions of the United States.
‘‘(F) APPROVED
STATE
APPLICATION.—
For purposes of subparagraph (A), the term
‘approved State application’ means an applica-
tion which is approved by the Secretary of Edu-
cation and which includes—
‘‘(i) the results of a recent publicly-
available survey (undertaken by the State
with the involvement of local education of-
ficials, members of the public, and experts
in school construction and management) of
such State’s needs for public school facili-
ties, including descriptions of—
‘‘(I) health and safety problems
at such facilities,
‘‘(II) the capacity of public
schools in the State to house projected
enrollments,
‘‘(III) the extent to which the
public schools in the State offer the
physical infrastructure needed to pro-
vide a high-quality education to all
students, and
‘‘(ii) a description of how the State
will allocate to local educational agencies,
or otherwise use, its allocation under this
subsection to address the needs identified
under subparagraph (A), including a de-
scription of how it will—
‘‘(I) give high priority to local-
ities with the greatest needs, as dem-
onstrated by inadequate school facili-
ties coupled with a low level of re-
sources to meet those needs,
‘‘(II) use its allocation under this
subsection to assist localities that lack
the fiscal capacity to issue bonds on
their own,
‘‘(III) ensure that its allocation
under this subsection is used only to
supplement, and not supplant, the
amount of school construction, reha-
bilitation, and repair in the State that
would have occurred in the absence of
such allocation, and
(b)(4) of this section shall be applied without
regard to subparagraphs (A), (H), (I), (J), (K),
and (L)(i).
‘‘(C) REGULATORY AUTHORITY.—The Sec-
retary may prescribe such regulations as are
necessary or appropriate to carry out the pur-
poses of this paragraph, including regulations
which require more frequent or more detailed
reporting.’’
(c) CONFORMING AMENDMENTS.—
(1) Subchapter U of chapter 1 of such Code is
amended by striking part IV, by redesignating part
V as part IV, and by redesignating section 1397F
as section 1397E.
(2) The table of parts of subchapter U of chap-
ter 1 of such Code is amended by striking the last
2 items and inserting the following item:
‘‘Part IV. Regulations.’’
(3) The table of sections for subpart B of part
IV of subchapter A of chapter 1 of such Code is
amended by adding at the end the following new
item:
‘‘Sec. 30B. Credit to holders of qualified public school construc-
tion bonds.’’