[Congressional Bills 106th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2975 Introduced in House (IH)]







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 determined 
 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 colleges, to amend the Elementary and 
  Secondary Education Act of 1965 to reduce class size, and for other 
                               purposes.

    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 ``Youth Education Development 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 ``Commissioner'' means the 
        Commissioner of the Administration for Children, Youth, and 
        Families in the Department 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 ``community 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 ``elementary 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 ``secondary 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 Commissioner 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 containing such assurances and information as the 
Commissioner may require by rule, including--
            (1) an assurance that such grant will be expended 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 (especially 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 behavior, 
                        and to prevent negative outcomes, in 
                        adolescents;
                            (ii) empowers adolescents, values all 
                        adolescents, and actively engages adolescents 
                        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 
                        effectiveness 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;
                            (ii) give adolescents an opportunity to 
                        develop new skills, primarily through ``hands-
                        on'' and other interactive learning processes;
                            (iii) be flexible to accommodate the 
                        experience, interests, family background, 
                        gender, and race or ethnicity of participating 
                        adolescents; and
                            (iv) supplement, and not supplant, other 
                        programs and activities being carried out in 
                        the community.

SEC. 102. GRANTS TO IMPROVE EDUCATIONAL PERFORMANCE.

    The Commissioner may make grants under section 101(a) to improve 
the educational performance of adolescents, to enhance their learning 
ability, to develop their knowledge and appreciation of music, drama, 
writing, reading, art, foreign languages, mathematics, and science, and 
to develop their awareness of the multicultural nature of society. Such 
grants may be used--
            (1) to develop curricular and educational materials 
        specifically designed for adolescents;
            (2) to provide peer counseling to help adolescents make 
        successful transitions among elementary, intermediate, and 
        secondary schools;
            (3) to carry out activities to promote academic achievement 
        by adolescents;
            (4) to carry out programs designed to help adolescents 
        enjoy and appreciate learning, particularly programs that 
        emphasize writing, reading, mathematics, or science; and
            (5) such other programs and activities as the Commissioner 
        considers to be appropriate.

SEC. 103. GRANTS TO IMPROVE HEALTH AND FITNESS.

    The Commissioner may make grants under section 101(a) to improve 
the health and fitness of adolescents. Such grants may be used--
            (1) to carry out competitive and noncompetitive sports 
        activities;
            (2) to carry out recreational activities designed--
                    (A) to promote the development of physical and 
                social skills,
                    (B) to foster a spirit of adventure;
                    (C) to provide opportunities for appropriate risk-
                taking; and
                    (D) to teach an appreciation of the physical 
                environment;
            (3) to carry out community-based programs designed--
                    (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, especially those 
        designed to reduce the incidence of adolescent 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 application of such skills through 
community service and community 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, including 
        interpersonal communication, planning, goal setting, decision 
        making, problem solving, conflict resolution, 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 problem 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 support and training to families of 
adolescents. Such grants may be used--
            (1) to carry out supportive and educational activities for 
        families of adolescents, including courses and workshops that 
        teach parenting skills that are most effective in promoting 
        healthy adolescent development;
            (2) to carry out activities that provide opportunities for 
        parents and adolescents to engage in mutually enjoyable and 
        educational pursuits, such as recreation, community and 
        volunteer service, and communication workshops;
            (3) to provide counseling to families of adolescents 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 Performance.--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 Fitness.--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 Relationships.--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 PROGRAMS FOR TEACHERS

SEC. 201. AUTHORIZATION.

    (a) In General.--The Secretary shall make grants to eligible 
entities to establish training programs to upgrade the skills of 
teachers at elementary schools and secondary schools.
    (b) Period of Grant.--The provision of payments under a grant under 
subsection (a) may extend over a period 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 assurances that the 
eligible entity--
            (1) has developed or shall develop a plan, including 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 supplant, 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 combination 
        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 section 201(a) may be used 
by an eligible entity only for establishing 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 teachers.
    (b) Conduct of Program.--In conducting the program established 
pursuant to subsection (a), an eligible entity shall--
            (1) require a teacher participating in the program to sign 
        a learning contract specifying the length of the internship or 
        education course, the desired 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 associations; 
        and
            (4) labor organizations.

SEC. 207. AUTHORIZATION OF APPROPRIATIONS.

    (a) In General.--There is authorized to be appropriated 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 period 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 containing such information as the Secretary 
may reasonably require.
    (b) Assurances.--Such application shall include assurances that the 
community college--
            (1) has developed or shall develop a plan, including an 
        evaluation component, for projects established pursuant to 
        section 303;
            (2) shall use Federal funds received from a grant under 
        section 301(a) to supplement, not supplant, 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 combination 
        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 instructional materials 
        and competency-based assessment 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 section 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 appropriated 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 adding 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 appropriated under 
        subsection (a) for a fiscal year the Secretary--
                    ``(A) shall make a total of 1 percent available to 
                the Secretary of the Interior (on behalf of the Bureau 
                of Indian Affairs) and the outlying 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 percentage 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)) applicable 
                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 individuals 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 adjust such data; and
                    ``(B) 20 percent of such remainder shall be 
                allocated to such local educational agencies in 
                accordance with the relative enrollments of children, 
                aged 5 to 17, in public and private nonprofit 
                elementary schools and secondary schools in the school 
                districts within the boundaries of such agencies.
            ``(2) Award rule.--Notwithstanding paragraph (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 reducing 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 certified 
                regular and special education teachers and teachers of 
                special-needs children, including teachers certified 
                through State and local alternative routes;
                    ``(B) testing new teachers for academic content 
                knowledge, and to meet State certification 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, consistent 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 described 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 agency that has 
        already reduced class size in the early grades to 18 or fewer 
        children may use funds received 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 development activities.
    ``(c) Supplement Not Supplant.--A local educational 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 development and enrichment programs) 
teachers who are, or have been, employed by the local educational 
agency.
    ``(e) Professional Development.--If a local educational agency uses 
funds made available under this part for professional development 
activities, the agency shall ensure the equitable participation of 
private nonprofit elementary and secondary schools in such activities. 
Section 6402 shall not apply to other activities under this section.
    ``(f) Administrative Expenses.--A local educational agency that 
receives funds under this part may use not more than 3 percent of such 
funds for local administrative 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 educational 
        agencies with child-poverty levels of 50 percent 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 submitted under section 6303 
a description of the agency's program under this part to reduce class 
size by hiring additional highly qualified teachers.

``SEC. 6608. REPORTS.

    ``(a) State.--Each State receiving funds under this part shall 
report on activities in the State under this section, 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 
teachers 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 subchapter 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 taxpayer 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 during 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 construction bond is 25 percent of the 
        annual credit determined with respect to such bond.
            ``(2) Annual credit.--The annual credit determined with 
        respect to any qualified school construction 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 respect 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 
        corporate debt obligations (determined under regulations 
        prescribed by the Secretary).
            ``(4) Special rule for issuance and redemption.--In the 
        case of a bond which is issued during the 3-month period ending 
        on a credit allowance date, the amount of the credit determined 
        under this subsection with respect to such credit allowance 
        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 redeemed.
    ``(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 facility 
                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 designated.--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 applicable 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 allocated 
                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 calendar year.
                    ``(C) Allocation on basis of total elementary and 
                secondary school age population.--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 calendar 
                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 subparagraph (A) 
                        for the calendar year.
                            ``(ii) Minimum percentage.--A State's 
                        minimum percentage for any calendar year is the 
                        minimum percentage described in section 1124(d) 
                        of the Elementary 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 possessions.--The 
                amount to be allocated under subparagraph (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 individuals 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 
                subparagraph to possessions of the United States.
                    ``(F) Approved state application.--For purposes of 
                subparagraph (A), the term `approved State application' 
                means an application which is approved by the Secretary 
                of Education and which includes--
                            ``(i) the results of a recent publicly-
                        available survey (undertaken by the State with 
                        the involvement of local education officials, 
                        members of the public, and experts in school 
                        construction and management) of such State's 
                        needs for public school facilities, 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 
                                provide 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 description 
                        of how it will--
                                    ``(I) give high priority to 
                                localities with the greatest needs, as 
                                demonstrated by inadequate school 
                                facilities coupled with a low level of 
                                resources 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, 
                                rehabilitation, and repair in the State 
                                that would have occurred in the absence 
                                of such allocation, and
                                    ``(IV) ensure that the needs of 
                                both rural and urban areas are 
                                recognized.
                Any allocation under subparagraph (A) by a State 
                education agency shall be binding if such agency 
                reasonably determined that the allocation was in 
                accordance with the plan approved under this 
                subparagraph.
            ``(5) Carryover of unused limitation.--If for any calendar 
        year--
                    ``(A) the amount allocated under paragraph (4) to 
                any State, exceeds
                    ``(B) the amount of bonds issued during such year 
                which are designated under paragraph (1) pursuant to 
                such allocation,
        the limitation amount under paragraph (4) for such State for 
        the following calendar year shall be increased by the amount of 
        such excess.
    ``(d) Limitation Based on Amount of Tax.--
            ``(1) In general.--The credit allowed under subsection (a) 
        for any taxable year shall not exceed the excess of--
                    ``(A) the sum of the regular tax liability (as 
                defined in section 26(b)) plus the tax imposed by 
                section 55, over
                    ``(B) the sum of the credits allowable under part 
                IV of subchapter A (other than subpart C thereof, 
                relating to refundable credits).
            ``(2) Carryover of unused credit.--If the credit allowable 
        under subsection (a) exceeds the limitation imposed by 
        paragraph (1) for such taxable year, such excess shall be 
        carried to the succeeding taxable year and added to the credit 
        allowable under subsection (a) for such taxable year.
    ``(e) Other Definitions.--For purposes of this section--
            ``(1) Credit allowance date.--The term `credit allowance 
        date' means--
                    ``(A) March 15,
                    ``(B) June 15,
                    ``(C) September 15, and
                    ``(D) December 15.
        Such term includes the last day on which the bond is 
        outstanding.
            ``(2) 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. Such term includes the local educational agency that 
        serves the District of Columbia but does not include any other 
        State agency.
            ``(3) Bond.--The term `bond' includes any obligation.
            ``(4) State.--The term `State' includes the District of 
        Columbia and any possession of the United States.
            ``(5) 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 which is not owned by a State or 
                local government or any agency or instrumentality of a 
                State or local government.
    ``(f) Credit Included in Gross Income.--Gross income includes the 
amount of the credit allowed to the taxpayer under this section 
(determined without regard to subsection (d)) and the amount so 
included shall be treated as interest income.
    ``(g) Bonds Held by Regulated Investment Companies.--If any 
qualified school construction bond is held by a regulated investment 
company, the credit determined under subsection (a) shall be allowed to 
shareholders of such company under procedures prescribed by the 
Secretary.
    ``(h) Credits May Be Stripped.--Under regulations prescribed by the 
Secretary--
            ``(1) In general.--There may be a separation (including at 
        issuance) of the ownership of a qualified school construction 
        bond and the entitlement to the credit under this section with 
        respect to such bond. In case of any such separation, the 
        credit under this section shall be allowed to the person who on 
        the credit allowance date holds the instrument evidencing the 
        entitlement to the credit and not to the holder of the bond.
            ``(2) Certain rules to apply.--In the case of a separation 
        described in paragraph (1), the rules of section 1286 shall 
        apply to the qualified school construction bond as if it were a 
        stripped bond and to the credit under this section as if it 
        were a stripped coupon.
    ``(i) Treatment for Estimated Tax Purposes.--Solely for purposes of 
sections 6654 and 6655, the credit allowed by this section to a 
taxpayer by reason of holding a qualified school construction bond on a 
credit allowance date shall be treated as if it were a payment of 
estimated tax made by the taxpayer on such date.
    ``(j) Credit May Be Transferred.--Nothing in any law or rule of law 
shall be construed to limit the transferability of the credit allowed 
by this section through sale and repurchase agreements.
    ``(k) Reporting.--Issuers of qualified school construction bonds 
shall submit reports similar to the reports required under section 
149(e).
    ``(l) Termination.--This section shall not apply to any bond issued 
after December 31, 2004.''
    (b) Reporting.--Subsection (d) of section 6049 of such Code 
(relating to returns regarding payments of interest) is amended by 
adding at the end the following new paragraph:
            ``(8) Reporting of credit on qualified school construction 
        bonds.--
                    ``(A) In general.--For purposes of subsection (a), 
                the term `interest' includes amounts includible in 
                gross income under section 30B(f) and such amounts 
                shall be treated as paid on the credit allowance date 
                (as defined in section 30B(e)(1)).
                    ``(B) Reporting to corporations, etc.--Except as 
                otherwise provided in regulations, in the case of any 
                interest described in subparagraph (A) of this 
                paragraph, subsection (b)(4) of this section shall be 
                applied without regard to subparagraphs (A), (H), (I), 
                (J), (K), and (L)(i).
                    ``(C) Regulatory authority.--The Secretary may 
                prescribe such regulations as are necessary or 
                appropriate to carry out the purposes 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 chapter 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 
                                        construction bonds.''
    (d) Effective Date.--The amendments made by this section shall 
apply to obligations issued after December 31, 1999.

SEC. 502. APPLICATION OF CERTAIN LABOR STANDARDS ON CONSTRUCTION 
              PROJECTS FINANCED UNDER PUBLIC SCHOOL CONSTRUCTION 
              PROGRAM.

    Section 439 of the General Education Provisions Act (relating to 
labor standards) is amended--
            (1) by inserting ``(a)'' before ``All laborers and 
        mechanics''; and
            (2) by adding at the end the following:
    ``(b)(1) For purposes of this section, the term `applicable 
program' also includes the qualified zone academy bond provisions 
enacted by section 226 of the Taxpayer Relief Act of 1997 and the 
program established by section 501 of the Youth Development Act of 
1999.
    ``(2) A State or local government participating in a program 
described in paragraph (1) shall--
            ``(A) in the awarding of contracts, give priority to 
        contractors with substantial numbers of employees residing in 
        the local education area to be served by the school being 
        constructed; and
            ``(B) include in the construction contract for such school 
        a requirement that the contractor give priority in hiring new 
        workers to individuals residing in such local education area.
    ``(3) In the case of a program described in paragraph (1), nothing 
in this subsection or subsection (a) shall be construed to deny any tax 
credit allowed under such program. If amounts are required to be 
withheld from contractors to pay wages to which workers are entitled, 
such amounts shall be treated as expended for construction purposes in 
determining whether the requirements of such program are met.''.

SEC. 503. EMPLOYMENT AND TRAINING ACTIVITIES RELATING TO CONSTRUCTION 
              OR RECONSTRUCTION OF PUBLIC SCHOOL FACILITIES.

    (a) In General.--Section 134 of the Workforce Investment Act of 
1998 (29 U.S.C. 2864) is amended by adding at the end the following:
    ``(f) Local Employment and Training Activities Relating to 
Construction or Reconstruction of Public School Facilities.--
            ``(1) In general.--In order to provide training services 
        related to construction or reconstruction of public school 
        facilities receiving funding assistance under an applicable 
        program, each State shall establish a specialized program of 
        training meeting the following requirements:
                    ``(A) The specialized program provides training for 
                jobs in the construction industry.
                    ``(B) The program is designed to provide trained 
                workers for projects for the construction or 
                reconstruction of public school facilities receiving 
                funding assistance under an applicable program.
                    ``(C) The program is designed to ensure that 
                skilled workers (residing in the area to be served by 
                the school facilities) will be available for the 
                construction or reconstruction work.
            ``(2) Coordination.--The specialized program established 
        under paragraph (1) shall be integrated with other activities 
        under this Act, with the activities carried out under the 
        National Apprenticeship Act of 1937 by the State Apprenticeship 
        Council or through the Bureau of Apprenticeship and Training in 
        the Department of Labor, as appropriate, and with activities 
        carried out under the Carl D. Perkins Vocational and Technical 
        Education Act of 1998. Nothing in this subsection shall be 
        construed to require services duplicative of those referred to 
        in the preceding sentence.
            ``(3) Applicable program.--In this subsection, the term 
        `applicable program' has the meaning given the term in section 
        439(b) of the General Education Provisions Act (relating to 
        labor standards).''.
    (b) State Plan.--Section 112(b)(17)(A) of the Workforce Investment 
Act of 1998 (29 U.S.C. 2822(b)(17)(A)) is amended--
            (1) in clause (iii), by striking ``and'' at the end;
            (2) by redesignating clause (iv) as clause (v); and
            (3) by inserting after clause (iii) the following:
                            ``(iv) how the State will establish and 
                        carry out a specialized program of training 
                        under section 134(f); and''.

              TITLE VI--ACCESS TO POST SECONDARY EDUCATION

SECTION. 601. INCREASE IN MAXIMUM PELL GRANTS.

    Section 401(b)(2)(A) of the Higher Education Act of 1965 (20 U.S.C. 
1070a(b)(2)(A)) is amended
            (1) by inserting ``and'' after the semicolon at the end of 
        clause (i); and
            (2) by striking clauses (ii) through (v) and inserting the 
        following:
                            ``(ii) $6,500 for each of the academic 
                        years 2000-2001, 2001-2002, 2002-2003, and 
                        2003-2004,''.
                                 <all>