plying subsection (a)(1) and paragraph (1) of this 
subsection.
‘‘SEC. 1400P. QUALIFIED ZONE ACADEMY BONDS. 
‘‘(a) QUALIFIED ZONE ACADEMY BOND.—For pur-
poses of this subchapter—
‘‘(1) IN GENERAL.—The term ‘qualified zone 
academy 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 a qualified pur-
pose with respect to a qualified zone academy 
established by a local educational agency, 
‘‘(B) the bond is issued by a State or local 
government within the jurisdiction of which 
such academy is located, 
‘‘(C) the issuer—
‘‘(i) designates such bond for purposes 
of this section, 
‘‘(ii) certifies that it has written as-
surances that the private business con-
tribution requirement of paragraph (2) will 
be met with respect to such academy, and 
‘‘(iii) certifies that it has the written 
approval of the local educational agency 
for such bond issuance, and
‘‘(D) the term of each bond which is part 
of such issue does not exceed 15 years. 
Rules similar to the rules of section 1400O(g) shall 
apply for purposes of paragraph (1). 
‘‘(2) PRIVATE
BUSINESS
CONTRIBUTION
RE-
QUIREMENT.—
‘‘(A) IN GENERAL.—For purposes of para-
graph (1), the private business contribution re-
quirement of this paragraph is met with respect 
to any issue if the local educational agency that 
established the qualified zone academy has writ-
ten commitments from private entities to make 
qualified contributions having a present value 
(as of the date of issuance of the issue) of not 
less than 10 percent of the proceeds of the 
issue.
‘‘(B) QUALIFIED
CONTRIBUTIONS.—For 
purposes of subparagraph (A), the term ‘quali-
fied contribution’ means any contribution (of a 
type and quality acceptable to the local edu-
cational agency) of—
‘‘(i) equipment for use in the qualified 
zone academy (including state-of-the-art 
technology and vocational equipment),
‘‘(ii) technical assistance in developing 
curriculum or in training teachers in order 
to promote appropriate market driven tech-
nology in the classroom, 
‘‘(iii) services of employees as volun-
teer mentors, 
‘‘(iv) internships, field trips, or other 
educational opportunities outside the acad-
emy for students, or 
‘‘(v) any other property or service 
specified by the local educational agency. 
‘‘(3) QUALIFIED
ZONE
ACADEMY.—The term 
‘qualified zone academy’ means any public school (or 
academic program within a public school) which is 
established by and operated under the supervision of 
a local educational agency to provide education or 
training below the postsecondary level if—
‘‘(A) such public school or program (as the 
case may be) is designed in cooperation with 
business to enhance the academic curriculum, 
increase graduation and employment rates, and 
better prepare students for the rigors of college 
and the increasingly complex workforce, 
‘‘(B) students in such public school or pro-
gram (as the case may be) will be subject to the
same academic standards and assessments as 
other students educated by the local educational 
agency, 
‘‘(C) the comprehensive education plan of 
such public school or program is approved by 
the local educational agency, and 
‘‘(D)(i) such public school is located in an 
empowerment zone or enterprise community 
(including any such zone or community des-
ignated after the date of the enactment of this 
section), or 
‘‘(ii) there is a reasonable expectation (as 
of the date of issuance of the bonds) that at 
least 35 percent of the students attending such 
school or participating in such program (as the 
case may be) will be eligible for free or reduced-
cost lunches under the school lunch program es-
tablished under the National School Lunch Act. 
‘‘(4) QUALIFIED PURPOSE.—The term ‘quali-
fied purpose’ means, with respect to any qualified 
zone academy—
‘‘(A) constructing, rehabilitating, or repair-
ing the public school facility in which the acad-
emy is established,
‘‘(B) acquiring the land on which such fa-
cility is to be constructed with part of the pro-
ceeds of such issue, 
‘‘(C) providing equipment for use at such 
academy, 
‘‘(D) developing course materials for edu-
cation to be provided at such academy, and 
‘‘(E) training teachers and other school 
personnel in such academy. 
‘‘(b) LIMITATIONS
ON AMOUNT
OF BONDS DES-
IGNATED.—
‘‘(1) IN GENERAL.—There is a national zone 
academy bond limitation for each calendar year. 
Such limitation is—
‘‘(A) $400,000,000 for 1998, 
‘‘(B) $400,000,000 for 1999, 
‘‘(C) $400,000,000 for 2000, 
‘‘(D) $400,000,000 for 2001, 
‘‘(E) $400,000,000 for 2002, 
‘‘(F) $400,000,000 for 2003, 
‘‘(G) $1,400,000,000 for 2004, 
‘‘(H) $1,400,000,000 for 2005, and 
‘‘(I) except as provided in paragraph (3), 
zero after 2005. 
‘‘(2) ALLOCATION OF LIMITATION.—