[Congressional Bills 106th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2416 Introduced in House (IH)]







106th CONGRESS
  1st Session
                                H. R. 2416

 To amend the Internal Revenue Code of 1986 to provide incentives for 
                  the construction of public schools.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                              July 1, 1999

 Mr. Weller (for himself and Ms. Dunn) introduced the following bill; 
         which was referred to the Committee on Ways and Means

_______________________________________________________________________

                                 A BILL


 
 To amend the Internal Revenue Code of 1986 to provide incentives for 
                  the construction of public schools.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``School Construction Help On 
Outstanding Loans Act of 1999''.

SEC. 2. AMENDMENTS TO ENCOURAGE ADDITIONAL SCHOOL CONSTRUCTION.

    (a) In General.--Clause (i) of section 149(d)(3)(A) of the Internal 
Revenue Code of 1986 is amended--
            (1) by striking ``or'' at the end of subclause (I),
            (2) by adding ``or'' at the end of subclause (II), and
            (3) by inserting after subclause (II) the following:
                                    ``(III) the 2nd advance refunding 
                                of the original bond if the original 
                                bond was issued after 1985 or the 3rd 
                                advance refunding of the original bond 
                                if the original bond was issued before 
                                1986 if, in either case, at least 25 
                                percent of the proceeds of the original 
                                bond were used, directly or indirectly, 
                                for the construction, reconstruction, 
                                or rehabilitation of public elementary 
                                or secondary school facilities or for 
                                the acquisition of land which is 
                                functionally related and subordinate to 
                                such facilities,''.
    (b) Effective Date.--The amendment made by this section shall apply 
to refunding obligations issued after December 31, 1999.

SEC. 3. MODIFICATION OF ARBITRAGE REBATE RULES APPLICABLE TO PUBLIC 
              SCHOOL CONSTRUCTION BONDS.

    (a) In General.--Subparagraph (C) of section 148(f)(4) of the 
Internal Revenue Code of 1986 is amended by adding at the end the 
following new clause:
                            ``(xviii) 4-year spending requirement for 
                        public school construction issue.--
                                    ``(I) In general.--In the case of a 
                                public school construction issue, the 
                                spending requirements of clause (ii) 
                                shall be treated as met if at least 10 
                                percent of the available construction 
                                proceeds of the construction issue are 
                                spent for the governmental purposes of 
                                the issue within the 1-year period 
                                beginning on the date the bonds are 
                                issued, 30 percent of such proceeds are 
                                spent for such purposes within the 2-
                                year period beginning on such date, 50 
                                percent of such proceeds are spent for 
                                such purposes within the 3-year period 
                                beginning on such date, and 100 percent 
                                of such proceeds are spent for such 
                                purposes within the 4-year period 
                                beginning on such date.
                                    ``(II) Public school construction 
                                issue.--For purposes of this clause, 
                                the term `public school construction 
                                issue' means any construction issue if 
                                no bond which is part of such issue is 
                                a private activity bond and all of the 
                                available construction proceeds of such 
                                issue are to be used for the 
                                construction (as defined in clause 
                                (iv)) of public school facilities to 
                                provide education or training below the 
                                postsecondary level or for the 
                                acquisition of land that is 
                                functionally related and subordinate to 
                                such facilities.
                                    ``(III) Other rules to apply.--
                                Rules similar to the rules of the 
                                preceding provisions of this 
                                subparagraph which apply to clause (ii) 
                                also apply to this clause.''.
    (b) Effective Date.--The amendment made by this section shall apply 
to obligations issued after December 31, 1999.

SEC. 4. ADDITIONAL INCREASE IN ARBITRAGE REBATE EXCEPTION FOR 
              GOVERNMENTAL BONDS USED TO FINANCE PUBLIC SCHOOL 
              FACILITIES.

    (a) In General.--Section 148(f)(4)(D)(vii) of the Internal Revenue 
Code of 1986 (relating to increase in exception for bonds financing 
public school capital expenditures) is amended by striking 
``$5,000,000'' the second place it appears and inserting 
``$15,000,000''.
    (b) Effective Date.--The amendment made by subsection (a) shall 
apply to obligations issued after December 31, 1999.
                                 <all>