A bill to authorize Federal financial assistance for the urgent repair and renovation of public elementary and secondary schools in high-need areas.

SECTION 1. PUBLIC SCHOOL REPAIR AND RENOVATION.

    Title XII of the Elementary and Secondary Education Act of 1965 (20 
U.S.C. 8501 et seq.) is amended to read as follows:

            ``TITLE XII--PUBLIC SCHOOL REPAIR AND RENOVATION

``SEC. 12001. FINDINGS.

    ``Congress finds as follows:
            ``(1) The General Accounting Office estimated in 1995 that 
        it would cost $112,000,000,000 to bring our Nation's school 
        facilities into good overall condition.
            ``(2) The General Accounting Office also found in 1995 that 
        60 percent of the Nation's schools, serving 28,000,000 
        students, reported that 1 or more building features, such as 
        roofs and plumbing, needed to be extensively repaired, 
        overhauled, or replaced.
            ``(3) The National Center for Education Statistics reported 
        that the average age for a school building in 1998 was 42 years 
        and that local educational agencies with relatively high rates 
        of poverty tend to have relatively old buildings.
            ``(4) School condition is positively correlated with 
        student achievement, according to a number of research studies.
            ``(5) The results of a recent survey indicate that the 
        condition of schools with large proportions of students living 
        on Indian lands is particularly poor.
            ``(6) While school repair and renovation are primarily a 
        State and local concern, some States and communities are not, 
        on their own, able to meet the burden of providing adequate 
        school facilities for all students, and the poorest communities 
        have had the greatest difficulty meeting this need. It is, 
        therefore, appropriate for the Federal Government to provide 
        assistance to high-need communities for school repair and 
        renovation.

``SEC. 12002. PURPOSE.

    ``The purpose of this title is to assist high-need local 
educational agencies in making urgent repairs and renovations to public 
school facilities in order to--
            ``(1) reduce health and safety problems, including 
        violations of local or State fire codes, faced by students; and
            ``(2) improve the ability of students to learn in their 
        school environment.

``SEC. 12003. AUTHORIZED ACTIVITIES.

    ``(a) In General.--A recipient of a grant or loan under this title 
shall use the grant or loan funds to carry out the purpose of this 
title by--
            ``(1) repairing or replacing roofs, electrical wiring or 
        plumbing systems;
            ``(2) repairing, replacing, or installing heating, 
        ventilation, or air conditioning systems;
            ``(3) ensuring that repairs and renovations under this 
        title comply with the requirements of section 504 of the 
        Rehabilitation Act of 1973 and the Americans with Disabilities 
        Act of 1990 relating to the accessibility of public school 
        programs to individuals with disabilities; and
            ``(4) making other types of school repairs and renovations 
        that the Secretary may reasonably determine are urgently 
        needed, particularly projects to correct facilities problems 
        that endanger the health and safety of students and staff such 
        as violations of State or local fire codes.
    ``(b) Limitation.--The Secretary shall not approve an application 
for a grant or loan under this title unless the applicant demonstrates 
to the Secretary's satisfaction that the applicant lacks sufficient 
funds, from other sources, to carry out the repairs or renovations for 
which the applicant is requesting assistance.

``SEC. 12004. GRANTS TO LOCAL EDUCATIONAL AGENCIES WITH HIGH 
              CONCENTRATIONS OF STUDENTS LIVING ON INDIAN LANDS.

    ``(a) Grants Authorized.--From funds available under section 
12008(a), the Secretary shall award grants to local educational 
agencies to enable the agencies to carry out the authorized activities 
described in section 12003 and subsection (e).
    ``(b) Eligibility.--A local educational agency is eligible for a 
grant under this section if the number of children determined under 
section 8003(a)(1)(C) of this Act for that agency constituted at least 
50 percent of the number of children who were in average daily 
attendance at the schools of such agency during the preceding school 
year.
    ``(c) Allocation of Funds.--The Secretary shall allocate funds 
available to carry out this section to eligible local educational 
agencies based on their respective numbers of children in average daily 
attendance who are counted under section 8003(a)(1)(C) of this Act.
    ``(d) Applications.--Each eligible local educational agency that 
desires to receive a grant under this section shall submit an 
application to the Secretary that includes--
            ``(1) a statement of how the agency will use the grant 
        funds;
            ``(2) a description of the steps the agency will take to 
        adequately maintain the facilities that the agency repairs, 
        renovates, or constructs with those funds; and
            ``(3) such other information and assurances as the 
        Secretary may reasonably require.
    ``(e) Construction of New Schools.--In addition to any other 
activity authorized under section 12003, an eligible local educational 
agency may use grant funds received under this section to construct a 
new school if the agency demonstrates to the Secretary's satisfaction 
that the agency will replace an existing school that is in such poor 
condition that renovating the school will not be cost-effective.

``SEC. 12005. GRANTS TO HIGH-POVERTY LOCAL EDUCATIONAL AGENCIES.

    ``(a) Grants Authorized.--From funds available under section 
12008(b)(1), the Secretary shall make grants, on a competitive basis, 
to local educational agencies with poverty rates of 25 percent or 
greater to enable the agencies to carry out the authorized activities 
described in section 12003.
    ``(b) Criteria for Awarding Grants.--In awarding grants under this 
section, the Secretary shall consider--
            ``(1) the poverty rate, the need for school repairs and 
        renovations, and the fiscal capacity of each local educational 
        agency; and
            ``(2) such other factors as the Secretary determines 
        appropriate.
    ``(c) Applications.--Each eligible local educational agency that 
desires to receive a grant under this section shall submit an 
application to the Secretary that includes--
            ``(1) a description of the agency's urgent need for school 
        repair and renovation and of how the agency will use funds 
        available under this title to meet those needs;
            ``(2) information on the fiscal effort that the agency is 
        making in support of education and evidence demonstrating that 
        the agency lacks the capacity to meet the agency's urgent 
        school repair and renovation needs without assistance made 
        available under this title;
            ``(3) a description of the steps the agency will take to 
        adequately maintain the facilities that the agency repairs or 
        renovates with the assistance; and
            ``(4) such other information and assurances as the 
        Secretary may reasonably require.

``SEC. 12006. SCHOOL RENOVATION GRANTS AND LOANS.

    ``(a) Grants and Loans Authorized.--From funds available under 
section 12008(b)(2), the Secretary shall make grants, and shall pay the 
cost of loans made, on a competitive basis, to local educational 
agencies that lack the ability to fund urgent school repairs without a 
grant or loan provided under this section to enable the agencies to 
carry out the authorized activities described in section 12003.
    ``(b) Loan Period.--Each loan under this section shall be for a 
period of 7 years and shall carry an interest rate of 0 percent.
    ``(c) Criteria for Making Loans.--In making loans under this 
section, the Secretary shall consider--
            ``(1) the extent of poverty, the need for school repairs 
        and renovations, and the fiscal capacity of each applicant; and
            ``(2) such other factors as the Secretary determines 
        appropriate.
    ``(d) Applications.--Each eligible local educational agency that 
desires to receive a grant or loan under this section shall submit an 
application to the Secretary that includes the information described in 
section 12005(c).
    ``(e) Credit Standards.--In carrying out this section, the 
Secretary--
            ``(1) shall not extend credit without finding that there is 
        reasonable assurance of repayment; and
            ``(2) may use credit enhancement techniques, as 
        appropriate, to reduce the credit risk of loans.

``SEC. 12007. PROGRESS REPORTS.

    ``The Secretary shall require recipients of grants and loans under 
this title to submit progress reports and such other information as the 
Secretary determines necessary to ensure compliance with this title and 
to evaluate the impact of activities assisted under this title.

``SEC. 12008. AUTHORIZATION OF APPROPRIATIONS.

    ``(a) Grants Under Section 12004.--For the purpose of making grants 
under section 12004, there are authorized to be appropriated 
$50,000,000 for fiscal year 2001 and such sums as may be necessary for 
each of the 4 succeeding fiscal years.
    ``(b) Grants Under Section 12005 and Grants and Loans Under Section 
12006.--For the purpose of making grants under section 12005, and 
grants and loans under section 12006, there are authorized to be 
appropriated $1,250,000,000 for fiscal year 2001 and such sums as may 
be necessary for each of the succeeding 4 years, of which--
            ``(1) 10 percent shall be available for grants under 
        section 12005; and
            ``(2) 90 percent shall be available to make grants and to 
        pay the cost of loans under section 12006.
    ``(c) Limitation on Loan Volume.--Within the available resources 
and authority, gross obligations for the principal amount of direct 
loans offered by the Secretary under section 12006 for fiscal year 2001 
shall not exceed $7,000,000,000, or the amount specified in an 
applicable appropriations Act, whichever is greater.

``SEC. 12009. DEFINITIONS.

    ``For the purpose of this title, the following terms have the 
following meanings:
            ``(1) Local educational agency.--The term `local 
        educational agency' has the meaning given that term in section 
        14101(18) (A) and (B) of this Act.
            ``(2) Public school facility.--
                    ``(A) In general.--The term `public school 
                facility' means a public building whose primary purpose 
                is the instruction of public elementary or secondary 
                students.
                    ``(B) Exclusions.--The term excludes athletic 
                stadiums or any other structure or facility intended 
                primarily for athletic exhibitions, contests, games, or 
                events for which admission is charged to the general 
                public.
            ``(3) Repair and renovation.--The term `repair and 
        renovation' used with respect to an existing public school 
        facility, means the repair or renovation of the facility 
        without increasing the size of the facility.''.

Summary: Requires high-need local educational agencies (LEAs) to use the title XII grants or loans they receive for repairs and renovations to reduce health and safety problems, and to improve the learning environment, with respect to: (1) roofs, electrical wiring, or plumbing repair or replacement; (2) heating, ventilation, or air conditioning systems' repair, replacement, or installation; (3) title XII repairs and renovations compliance with specified accessibility requirements of the Rehabilitation Act of 1973 and the Americans with Disabilities Act of 1990; and (4) other types of school repairs and renovations that the Secretary of Education may reasonably determine are urgently needed, particularly projects to correct facilities problems that endanger the health and safety of students and staff.
Requires title XII grant or loan applicants to demonstrate to the Secretary's satisfaction that they lack sufficient funds from other sources to carry out the repairs or renovations for which they are requesting assistance.
Provides for the following types and portions of title XII assistance: (1) a specified amount reserved for allocated grants to LEAs with high concentrations of students living on Indian lands (which may be used for new school construction if renovating an existing school would not be cost-effective); (2) ten percent of the remainder for competitive grants to high-poverty LEAs (with at least a quarter of their students being from families with incomes below the poverty line); and (3) 90 percent of such remainder for competitive grants and loans to high-need LEAs that lack the ability to fund urgent school repairs (with a limitation on the amount of the loan volume).
Authorizes appropriations.
Prohibits title XII assistance for repair or renovation of athletic stadiums or other structures or facilities intended primarily for athletic events for which admission is charged to the general public.