[Congressional Bills 106th Congress]
[From the U.S. Government Publishing Office]
[H.R. 892 Introduced in House (IH)]







106th CONGRESS
  1st Session
                                H. R. 892

   To renew education in this country by providing funds for school 
renovation and construction, scholarships that allow parents choice in 
                     education, and tax incentives.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             March 2, 1999

  Mr. Forbes 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 renew education in this country by providing funds for school 
renovation and construction, scholarships that allow parents choice in 
                     education, and tax incentives.

    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 ``Renewing America's Schools Act''.

              TITLE I--EDUCATIONAL FACILITIES IMPROVEMENT

SEC. 101. PROVISION OF ASSISTANCE FOR CONSTRUCTION AND RENOVATION OF 
              EDUCATIONAL FACILITIES.

    Title XII of the Elementary and Secondary Education Act of 1965 (20 
U.S.C. 8501 et seq.) is amended--
            (1) by striking sections 12002 and 12003;
            (2) by redesignating sections 12001 and 12004 through 
        12013, as sections 12101 and 12102 through 12111, respectively;
            (3) by inserting after the title heading the following:

``SEC. 12001. FINDINGS.

    ``The Congress finds the following:
            ``(1) The General Accounting Office performed a 
        comprehensive survey of the Nation's public elementary and 
        secondary school facilities, and found severe levels of 
        disrepair in all areas of the United States.
            ``(2) The General Accounting Office concluded more than 
        14,000,000 children attend schools in need of extensive repair 
        or replacement. Seven million children attend schools with life 
        safety code violations. Twelve million children attend schools 
        with leaky roofs.
            ``(3) The General Accounting Office found the problem of 
        crumbling schools transcends demographic and geographic 
        boundaries. At 38 percent of urban schools, 30 percent of rural 
        schools, and 29 percent of suburban schools, at least one 
        building is in need of extensive repair or should be completely 
        replaced.
            ``(4) The condition of school facilities has a direct 
        effect on the safety of students and teachers, and on the 
        ability of students to learn.
            ``(5) Academic research has proven a direct correlation 
        between the condition of school facilities and student 
        achievement. At Georgetown University, researchers found 
        students assigned to schools in poor condition can be expected 
        to fall 10.9 percentage points below those in buildings in 
        excellent condition. Similar studies have demonstrated up to a 
        20 percent improvement in test scores when students were moved 
        from a poor facility to a new facility.
            ``(6) The General Accounting Office found most schools are 
        not prepared to incorporate modern technology into the 
        classroom. Forty-six percent of schools lack adequate 
        electrical wiring to support the full-scale use of technology. 
        More than a third of schools lack the requisite electrical 
        power. Fifty-six percent of schools have insufficient phone 
        lines for modems.
            ``(7) The Department of Education reported that elementary 
        and secondary school enrollment, already at a record high 
        level, will continue to grow during the period between 1996 and 
        2000, and that in order to accommodate this growth, the United 
        States will need to build an additional 6,000 schools over this 
        time period.
            ``(8) The General Accounting Office found it will cost 
        $112,000,000,000 just to bring schools up to good, overall 
        condition, not including the cost of modernizing schools so the 
        schools can utilize 21st century technology, nor including the 
        cost of expansion to meet record enrollment levels.
            ``(9) State and local financing mechanisms have proven 
        inadequate to meet the challenges facing today's aging school 
        facilities. Large numbers of local educational agencies have 
        difficulties securing financing for school facility 
        improvement.
            ``(10) The Federal Government can support elementary and 
        secondary school facilities, and can leverage additional funds 
        for the improvement of elementary and secondary school 
        facilities.

``SEC. 12002. PURPOSE.

    ``The purpose of this title is to help State and local authorities 
improve the quality of education at their public schools through the 
provision of Federal funds to enable the State and local authorities to 
meet the cost associated with the improvement of school facilities 
within their jurisdictions.

     ``PART A--GENERAL INFRASTRUCTURE IMPROVEMENT GRANT PROGRAM'';

        and
            (4) by adding at the end of part A the following:

       ``PART B--CONSTRUCTION AND RENOVATION BOND SUBSIDY PROGRAM

``SEC. 12201. DEFINITIONS.

    ``As used in this part:
            ``(1) Educational facility.--The term `educational 
        facility' has the meaning given the term `school' in section 
        12110.
            ``(2) Local area.--The term `local area' means the 
        geographic area served by a local educational agency.
            ``(3) Local bond authority.--The term `local bond 
        authority' means--
                    ``(A) a local educational agency with authority to 
                issue a bond for construction or renovation of 
                educational facilities in a local area; and
                    ``(B) a political subdivision of a State with 
                authority to issue such a bond for an area including a 
                local area.
            ``(4) Poverty line.--The term `poverty line' means the 
        official poverty line (as defined by the Office of Management 
        and Budget, and revised annually in accordance with section 
        673(2) of the Omnibus Budget Reconciliation Act of 1981 (42 
        U.S.C. 9902(2))) applicable to a family of the size involved.
            ``(5) State.--The term `State' means each of the several 
        States of the United States, the District of Columbia, and the 
        Commonwealth of Puerto Rico.

``SEC. 12202. AUTHORIZATION OF PROGRAM.

    ``(a) Program Authority.--Of the amount appropriated under section 
12210 for a fiscal year and not reserved under subsection (b), the 
Secretary shall use--
            ``(1) 20 percent of such amount to award grants to local 
        bond authorities for not more than 125 eligible local areas as 
        provided for under section 12203; and
            ``(2) 80 percent of such amount to award grants to States 
        as provided for under section 12204.
    ``(b) Special Rule.--The Secretary may reserve--
            ``(1) not more than 1 percent of the amount appropriated 
        under section 12210 to provide assistance to Indian schools in 
        accordance with the purpose of this title;
            ``(2) not more than 0.5 percent of the amount appropriated 
        under section 12210 to provide assistance to Guam, the United 
        States Virgin Islands, American Samoa, the Commonwealth of the 
        Northern Mariana Islands, the Republic of the Marshall Islands, 
        the Federated States of Micronesia, and the Republic of Palau 
        to carry out the purpose of this title; and
            ``(3) not more than 0.1 percent of the amount appropriated 
        under section 12210 to carry out section 12209.

``SEC. 12203. DIRECT GRANTS TO LOCAL BOND AUTHORITIES.

    ``(a) In General.--The Secretary shall award a grant under section 
12202(a)(1) to eligible local bond authorities to provide assistance 
for construction or renovation of educational facilities in a local 
area.
    ``(b) Use of Funds.--The local bond authority shall use amounts 
received through a grant made under section 12202(a)(1) to pay a 
portion of the interest costs applicable to any local bond issued to 
finance an activity described in section 12205 with respect to the 
local area.
    ``(c) Eligibility and Determination.--
            ``(1) Eligibility.--To be eligible to receive a grant under 
        section 12202(a)(1) for a local area, a local bond authority 
        shall demonstrate the capacity to issue a bond for an area that 
        includes 1 of the 125 local areas for which the Secretary has 
        made a determination under paragraph (2).
            ``(2) Determination.--
                    ``(A) Mandatory.--The Secretary shall make a 
                determination of the 100 local areas that have the 
                highest numbers of children who are--
                            ``(i) aged 5 to 17, inclusive; and
                            ``(ii) members of families with incomes 
                        that do not exceed 100 percent of the poverty 
                        line.
                    ``(B) Discretionary.--The Secretary may make a 
                determination of 25 local areas, for which the 
                Secretary has not made a determination under 
                subparagraph (A), that have extraordinary needs for 
                construction or renovation of educational facilities 
                that the local bond authority serving the local area is 
                unable to meet.
    ``(d) Application.--To be eligible to receive a grant under section 
12202(a)(1), a local bond authority shall prepare and submit to the 
Secretary an application at such time, in such manner, and containing 
such information as the Secretary may require, including--
            ``(1) an assurance that the application was developed in 
        consultation with parents and classroom teachers;
            ``(2) information sufficient to enable the Secretary to 
        make a determination under subsection (c)(2) with respect to 
        such local authority;
            ``(3) a description of the architectural, civil, 
        structural, mechanical, or electrical construction or 
        renovation to be supported with the assistance provided under 
        this part;
            ``(4) a cost estimate of the proposed construction or 
        renovation;
            ``(5) an identification of other resources, such as unused 
        bonding capacity, that are available to carry out the 
        activities for which assistance is requested under this part;
            ``(6) a description of how activities supported with funds 
        provided under this part will promote energy conservation; and
            ``(7) such other information and assurances as the 
        Secretary may require.
    ``(e) Award of Grants.--
            ``(1) In general.--In awarding grants under section 
        12202(a)(1), the Secretary shall give preference to a local 
        bond authority based on--
                    ``(A) the extent to which the local educational 
                agency serving the local area involved or the 
                educational facility for which the authority seeks a 
                grant (as appropriate) meets the criteria described in 
                section 12103(a);
                    ``(B) the extent to which the educational facility 
                is overcrowded; and
                    ``(C) the extent to which assistance provided 
                through the grant will be used to fund construction or 
                renovation that, but for receipt of the grant, would 
                not otherwise be possible to undertake.
            ``(2) Amount of assistance.--
                    ``(A) In general.--In determining the amount of 
                assistance for which local bond authorities are 
                eligible under section 12202(a)(1), the Secretary 
                shall--
                            ``(i) give preference to a local bond 
                        authority based on the criteria specified in 
                        paragraph (1); and
                            ``(ii) consider--
                                    ``(I) the amount of the cost 
                                estimate contained in the application 
                                of the local bond authority under 
                                subsection (d)(4);
                                    ``(II) the relative size of the 
                                local area served by the local bond 
                                authority; and
                                    ``(III) any other factors 
                                determined to be appropriate by the 
                                Secretary.
                    ``(B) Maximum amount of assistance.--A local bond 
                authority shall be eligible for assistance under 
                section 12202(a)(1) in an amount that does not exceed 
                the appropriate percentage under section 12204(f)(3) of 
                the interest costs applicable to any local bond issued 
                to finance an activity described in section 12205 with 
                respect to the local area involved.

``SEC. 12204. GRANTS TO STATES.

    ``(a) In General.--The Secretary shall award a grant under section 
12202(a)(2) to each eligible State to provide assistance to the State, 
or local bond authorities in the State, for construction and renovation 
of educational facilities in local areas.
    ``(b) Use of Funds.--The State shall use amounts received through a 
grant made under section 12202(a)(2)--
            ``(1) to pay a portion of the interest costs applicable to 
        any State bond issued to finance an activity described in 
        section 12205 with respect to the local areas; or
            ``(2) to provide assistance to local bond authorities in 
        the State to pay a portion of the interest costs applicable to 
        any local bond issued to finance an activity described in 
        section 12205 with respect to the local areas.
    ``(c) Amount of Grant to State.--
            ``(1) In general.--From the amount available for grants 
        under section 12202(a)(2), the Secretary shall award a grant to 
        each eligible State that is equal to the total of--
                    ``(A) a sum that bears the same relationship to 50 
                percent of such amount as the total amount of funds 
                made available for all eligible local educational 
                agencies in the State under part A of title I for such 
                year bears to the total amount of funds made available 
                for all eligible local educational agencies in all 
                States under such part for such year; and
                    ``(B) a sum that bears the same relationship to 50 
                percent of such amount as the total amount of funds 
                made available for all eligible local educational 
                agencies in the State under title VI for such year 
                bears to the total amount of funds made available for 
                all eligible local educational agencies in all States 
                under such title for such year.
            ``(2) Eligible local educational agencies.--For the purpose 
        of paragraph (1) the term `eligible local educational agency' 
        means a local educational agency that does not serve a local 
        area for which an eligible local bond authority received a 
        grant under section 12203.
    ``(d) State Applications Required.--To be eligible to receive a 
grant under section 12202(a)(2), a State shall prepare and submit to 
the Secretary an application at such time, in such manner, and 
containing such information as the Secretary may require. Such 
application shall contain--
            ``(1) a description of the process the State will use to 
        determine which local bond authorities will receive assistance 
        under subsection (b)(2).
            ``(2) an assurance that grant funds under this section will 
        be used to increase the amount of school construction or 
        renovation in the State for a fiscal year compared to such 
        amount in the State for the preceding fiscal years.
    ``(e) Administering Agency.--
            ``(1) In general.--The State agency with authority to issue 
        bonds for the construction or renovation of educational 
        facilities, or with the authority to otherwise finance such 
        construction or renovation, shall administer the amount 
        received through the grant.
            ``(2) Special rule.--If no agency described in paragraph 
        (1) exits, or if there is more than one such agency, then the 
        chief executive officer of the State and the chief State school 
        officer shall designate a State entity or individual to 
        administer the amounts received through the grant.
    ``(f) Assistance to Local Bond Authorities.--
            ``(1) In general.--To be eligible to receive assistance 
        from a State under this section, a local bond authority shall 
        prepare and submit to the State agency designated under 
        subsection (e) an application at such time, in such manner, and 
        containing such information as the State agency may require, 
        including the information described in section 12203(d).
            ``(2) Criteria.--In awarding grants under this section, the 
        State agency shall give preference to a local bond authority 
        based on--
                    ``(A) the extent to which the local educational 
                agency serving the local area involved or the 
                educational facility for which the authority seeks the 
                grant (as appropriate) meets the criteria described in 
                section 12103(a);
                    ``(B) the extent to which the educational facility 
                is overcrowded; and
                    ``(C) the extent to which assistance provided 
                through the grant will be used to fund construction or 
                renovation that, but for receipt of the grant, would 
                not otherwise be possible to undertake.
            ``(3) Amount of assistance.--A local bond authority seeking 
        assistance for a local area served by a local educational 
        agency described in--
                    ``(A) clause (i)(I) or clause (ii)(I) of section 
                1125(c)(2)(A), shall be eligible for assistance in an 
                amount that does not exceed 10 percent;
                    ``(B) clause (i)(II) or clause (ii)(II) of section 
                1125(c)(2)(A), shall be eligible for assistance in an 
                amount that does not exceed 20 percent;
                    ``(C) clause (i)(III) or clause (ii)(III) of 
                section 1125(c)(2)(A), shall be eligible for assistance 
                in an amount that does not exceed 30 percent;
                    ``(D) clause (i)(IV) or clause (ii)(IV) of section 
                1125(c)(2)(A), shall be eligible for assistance in an 
                amount that does not exceed 40 percent; and
                    ``(E) clause (i)(V) or clause (ii)(V) of section 
                1125(c)(2)(A), shall be eligible for assistance in an 
                amount that does not exceed 50 percent;
        of the interest costs applicable to any local bond issued to 
        finance an activity described in section 12205 with respect to 
        the local area.
    ``(g) Assistance to State.--
            ``(1) In general.--If a State issues a bond to finance an 
        activity described in section 12205 with respect to local 
        areas, the State shall be eligible for assistance in an amount 
        that does not exceed the percentage calculated under the 
        formula described in paragraph (2) of the interest costs 
        applicable to the State bond with respect to the local areas.
            ``(2) Formula.--The Secretary shall develop a formula for 
        determining the percentage referred to in paragraph (1). The 
        formula shall specify that the percentage shall consist of a 
        weighted average of the percentages referred to in 
        subparagraphs (A) through (E) of subsection (f)(3) for the 
        local areas involved.

``SEC. 12205. AUTHORIZED ACTIVITIES.

    ``An activity described in this section is a project of significant 
size and scope that consists of--
            ``(1) the repair or upgrading of classrooms or structures 
        related to academic learning, including the repair of leaking 
        roofs, crumbling walls, inadequate plumbing, poor ventilation 
        equipment, and inadequate heating or light equipment;
            ``(2) an activity to increase physical safety at the 
        educational facility involved;
            ``(3) an activity to enhance the educational facility 
        involved to provide access for students, teachers, and other 
        individuals with disabilities;
            ``(4) an activity to improve the energy efficiency of the 
        educational facility involved;
            ``(5) an activity to address environmental hazards at the 
        educational facility involved, such as poor ventilation, indoor 
        air quality, or lighting;
            ``(6) the provision of basic infrastructure that 
        facilitates educational technology, such as communications 
        outlets, electrical systems, power outlets, or a communication 
        closet;
            ``(7) the construction of new schools to meet the needs 
        imposed by enrollment growth;
            ``(8) additional construction for existing schools to meet 
        needs imposed by overcrowding; and
            ``(9) any other activity the Secretary determines achieves 
        the purpose of this title.

``SEC. 12206. STATE GRANT WAIVERS.

    ``(a) Waiver for State Issuance of Bond.--
            ``(1) In general.--A State that issues a bond described in 
        section 12204(b)(1) with respect to a local area may request 
        that the Secretary waive the limits described in section 
        12204(f)(3) for the local area, in calculating the amount of 
        assistance the State may receive under section 12204(g). The 
        State may request the waiver only if no local entity is able, 
        for one of the reasons described in subparagraphs (A) through 
        (F) of paragraph (2), to issue bonds on behalf of the local 
        area. Under such a waiver, the Secretary may permit the State 
        to use amounts received through a grant made under section 
        12202(a)(2) to pay for not more than 80 percent of the interest 
        costs applicable to the State bond with respect to the local 
        area.
            ``(2) Demonstration by state.--To be eligible to receive a 
        waiver under this subsection, a State shall demonstrate to the 
        satisfaction of the Secretary that--
                    ``(A) the local bond authority serving the local 
                area has reached a limit on its borrowing authority as 
                a result of a debt ceiling or property tax cap;
                    ``(B) the local area has a high percentage of low-
                income residents, or an unusually high property tax 
                rate;
                    ``(C) the demographic composition of the local area 
                will not support additional school spending;
                    ``(D) the local bond authority has a history of 
                failed attempts to pass bond referenda;
                    ``(E) the local area contains a significant 
                percentage of Federally-owned land that is not subject 
                to local taxation; or
                    ``(F) for another reason, no local entity is able 
                to issue bonds on behalf of the local area.
    ``(b) Waiver for Other Financing Sources.--
            ``(1) In general.--A State may request that the Secretary 
        waive the use requirements of section 12204(b) for a local bond 
        authority to permit the State to provide assistance to the 
        local bond authority to finance construction or renovation by 
        means other than through the issuance of bonds.
            ``(2) Use of funds.--A State that receives a waiver granted 
        under this subsection may provide assistance to a local bond 
        authority in accordance with the criteria described in section 
        12204(f)(2) to enable the local bond authority to repay the 
        costs incurred by the local bond authority in financing an 
        activity described in section 12205. The local bond authority 
        shall be eligible to receive the amount of such assistance that 
        the Secretary estimates the local bond authority would be 
        eligible to receive under section 12204(f)(3) if the 
        construction or renovation were financed through the issuance 
        of a bond.
            ``(3) Matching requirement.--The State shall make available 
        to the local bond authority (directly or through donations from 
        public or private entities) non-Federal contributions in an 
        amount equal to not less than $1 for every $1 of Federal funds 
        provided to the local bond authority through the grant.
    ``(c) Waiver for Other Uses.--
            ``(1) In general.--A State may request that the Secretary 
        waive the use requirements of section 12204(b) for a State to 
        permit the State to carry out activities that achieve the 
        purpose of this title.
            ``(2) Demonstration by state.--To be eligible to receive a 
        waiver under this subsection, a State shall demonstrate to the 
        satisfaction of the Secretary that the use of assistance 
        provided under the waiver--
                    ``(A) will result in an equal or greater amount of 
                construction or renovation of educational facilities 
                than the provision of assistance to defray the interest 
                costs applicable to a bond for such construction or 
                renovation; and
                    ``(B) will be used to fund activities that are 
                effective in carrying out the activities described in 
                section 12205, such as--
                            ``(i) the capitalization of a revolving 
                        loan fund for such construction or renovation;
                            ``(ii) the use of funds for reinsurance or 
                        guarantees with respect to the financing of 
                        such construction or renovation;
                            ``(iii) the creation of a mechanism to 
                        leverage private sector resources for such 
                        construction or renovation;
                            ``(iv) the capitalization of authorities 
                        similar to State Infrastructure Banks to 
                        leverage additional funds for such construction 
                        or renovation; or
                            ``(v) any other activity the Secretary 
                        determines achieves the purpose of this title.
    ``(d) Local Bond Authority Waiver.--
            ``(1) In general.--A local bond authority may request the 
        Secretary waive the use requirements of section 12203(b) for a 
        local head authority to permit the authority to finance 
        construction or renovation of educational facilities by means 
        other than through use of bonds.
            ``(2) Demonstration.--To be eligible to receive a waiver 
        under this subsection, a local bond authority shall demonstrate 
        that the amounts made available through a grant under the 
        waiver will result in an equal or greater amount of 
        construction or renovation of educational facilities than the 
        provision of assistance to defray the interest costs applicable 
        to a bond for such construction or renovation.
    ``(e) Request for Waiver.--A State or local bond authority that 
desires a waiver under this section shall submit a waiver request to 
the Secretary that--
            ``(1) identifies the type of waiver requested;
            ``(2) with respect to a waiver described in subsection (a), 
        (c), or (d), makes the demonstration described in subsection 
        (a)(2), (c)(2), or (d)(2), respectively;
            ``(3) describes the manner in which the waiver will further 
        the purpose of this title; and
            ``(4) describes the use of assistance provided under such 
        waiver.
    ``(f) Action by Secretary.--The Secretary shall make a 
determination with respect to a request submitted under subsection (d) 
not later than 90 days after the date on which such request was 
submitted.
    ``(g) General Requirements.--
            ``(1) States.--In the case of a waiver request submitted by 
        a State under this section, the State shall--
                    ``(A) provide all interested local educational 
                agencies in the State with notice and a reasonable 
                opportunity to comment on the request;
                    ``(B) submit the comments to the Secretary; and
                    ``(C) provide notice and information to the public 
                regarding the waiver request in the manner that the 
                applying State customarily provides similar notices and 
                information to the public.
            ``(2) Local bond authorities.--In the case of a waiver 
        request submitted by a local bond authority under this section, 
        the local bond authority shall--
                    ``(A) provide the affected local educational agency 
                with notice and a reasonable opportunity to comment on 
                the request;
                    ``(B) submit the comments to the Secretary; and
                    ``(C) provide notice and information to the public 
                regarding the waiver request in the manner that the 
                applying local bond authority customarily provides 
                similar notices and information to the public.

``SEC. 12207. GENERAL PROVISIONS.

    ``(a) Failure to Issue Bonds.--
            ``(1) States.--If a State that receives assistance under 
        this part fails to issue a bond for which the assistance is 
        provided, the amount of such assistance shall be made available 
        to the State as provided for under section 12204, during the 
        first fiscal year following the date of repayment.
            ``(2) Local bond authorities and local areas.--If a local 
        bond authority that receives assistance under this part fails 
        to issue a bond, or a local area that receives such assistance 
        fails to become the beneficiary of a bond, for which the 
        assistance is provided, the amount of such assistance--
                    ``(A) in the case of assistance received under 
                section 12202(a)(1), shall be repaid to the Secretary 
                and made available as provided for under section 12203; 
                and
                    ``(B) in the case of assistance received under 
                section 12202(a)(2), shall be repaid to the State and 
                made available as provided for under section 12204.
    ``(b) Liability of the Federal Government.--The Secretary shall not 
be liable for any debt incurred by a State or local bond authority for 
which assistance is provided under this part. If such assistance is 
used by a local educational agency to subsidize a debt other than the 
issuance of a bond, the Secretary shall have no obligation to repay the 
lending institution to whom the debt is owed if the local educational 
agency defaults.

``SEC. 12208. FAIR WAGES.

    ``The provisions of section 12107 shall apply with respect to all 
laborers and mechanics employed by contractors or subcontractors in the 
performance of any contract and subcontract for the repair, renovation, 
alteration, or construction, including painting and decorating, of any 
building or work that is financed in whole or in part using assistance 
provided under this part.

``SEC. 12209. REPORT.

    ``From amounts reserved under section 12202(b)(3) for each fiscal 
year the Secretary shall--
            ``(1) collect such data as the Secretary determines 
        necessary at the school, local, and State levels;
            ``(2) conduct studies and evaluations, including national 
        studies and evaluations, in order to--
                    ``(A) monitor the progress of activities supported 
                with funds provided under this part; and
                    ``(B) evaluate the state of United States 
                educational facilities; and
            ``(3) report to the appropriate committees of Congress 
        regarding the findings of the studies and evaluations described 
        in paragraph (2).

``SEC. 12210. FUNDING.

    ``(a) In General.--There are authorized to be appropriated 
$5,000,000,000 for fiscal year 2000 to carry out this part.
    ``(b) Entitlement.--Subject to subsection (a), each State or local 
bond authority awarded a grant under this part shall be entitled to 
payments under the grant.
    ``(c) Availability.--Any amounts appropriated pursuant to the 
authority of subsection (a) shall remain available until expended.''.

SEC. 102. CONFORMING AMENDMENTS.

    (a) Cross References.--Part A of title XII of the Elementary and 
Secondary Education Act of 1965 (as redesignated by section 102(3)) is 
amended--
            (1) in section 12102(a) (as redesignated by section 
        102(2))--
                    (A) in paragraph (1)--
                            (i) by striking ``12013'' and inserting 
                        ``12111'';
                            (ii) by striking ``12005'' and inserting 
                        ``12103''; and
                            (iii) by striking ``12007'' and inserting 
                        ``12105''; and
                    (B) in paragraph (2), by striking ``12013'' and 
                inserting ``12111''; and
            (2) in section 12110(3)(C) (as redesignated by section 
        102(2)), by striking ``12006'' and inserting ``12104''.
    (b) Conforming Amendments.--Part A of title XII of the Elementary 
and Secondary Education Act of 1965 (as redesignated by section 202(3)) 
(20 U.S.C. 8501 et seq.) is further amended--
            (1) in section 12101 (as redesignated by section 102(2)), 
        by striking ``This title'' and inserting ``This part''; and
            (2) in sections 12102(a)(2), 12102(b)(1), 12103(a), 
        12103(b), 12103(b)(2), 12103(c), 12103(d), 12104(a), 
        12104(b)(2), 12104(b)(3), 12104(b)(4), 12104(b)(6), 
        12104(b)(7), 12105(a), 12105(b), 12106(a), 12106(b), 12106(c), 
        12106(c)(1), 12106(c)(7), 12106(e), 12107, 12108(a)(1), 
        12108(a)(2), 12108(b)(1), 12108(b)(2), 12108(b)(3), 
        12108(b)(4), 12109(2)(A), and 12110 (as redesignated by section 
        102(2)), by striking ``this title'' each place it appears and 
        inserting ``this part''.

                         TITLE II--SCHOLARSHIPS

SEC. 201. DEFINITIONS.

    Section 6003 of the Elementary and Secondary Education Act of 1965 
is amended--
            (1) in the section heading by striking ``definition'' and 
        inserting ``definitions'';
            (2) in the matter preceding subparagraph (A)--
                    (A) by striking ``(1)'', ``(2)'', and ``(3)'';
                    (B) by striking ``title the term'' and inserting 
                the following: ``title--
            ``(1) the term'';
            (3) by striking the period at the end; and
            (4) by adding at the end the following:
            ``(2) the term `poverty line' means 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; and
            ``(3) the term `voluntary public and private parental 
        choice program' means a program that meets the requirements of 
        section 6301(b)(9), is authorized by State law, and includes 1 
        or more private schools to allow low-income parents to choose 
        the appropriate school for their children.''.

SEC. 202. ALLOCATION TO LOCAL EDUCATIONAL AGENCIES.

    Section 6102(a) of the Elementary and Secondary Education Act of 
1965 is amended to read as follows:
    ``(a) Distribution Rule.--
            ``(1) In general.--Except as provided in paragraph (2), 
        from the sums made available each year to carry out this title, 
        the State educational agency shall distribute not less than 90 
        percent to local educational agencies within such State 
        according to the relative enrollments in public and private, 
        nonprofit schools within the school districts of such agencies, 
        adjusted, in accordance with criteria approved by the 
        Secretary, to provide higher per pupil allocations to local 
        educational agencies which have the greatest numbers or 
        percentages of children whose education imposes a higher than 
        average cost per child, such as--
                    ``(A) children living in areas with high 
                concentrations of low-income families;
                    ``(B) children from low-income families; and
                    ``(C) children living in sparsely populated areas.
            ``(2) Exception.--A State that has enacted or will enact a 
        law that establishes a voluntary public and private parental 
        choice program and that complies with the provisions of section 
        6301(b)(9) may reserve an additional 15 percent from the sums 
        made available each year to carry out this title if the 
        additional amount reserved is used exclusively for voluntary 
        public and private parental choice programs.''.

 SEC. 203. USES OF FUNDS.

    (a) State Uses of Funds.--Section 6201(a)(1) of the Elementary and 
Secondary Education Act of 1965 is amended--
            (1) in subparagraph (C), by striking ``and'' after the 
        semicolon; and
            (2) by inserting after subparagraph (C) the following:
                    ``(D) establishing voluntary public and private 
                parental choice programs in accordance with section 
                6301(b)(9); and''.
    (b) Local Uses of Funds.--Section 6301(b) of the Elementary and 
Secondary Education Act of 1965 is amended--
            (1) in paragraph (8), by striking ``and'' after the 
        semicolon;
            (2) in paragraph (9), by striking the period and inserting 
        ``; and''; and
            (3) by inserting after paragraph (9) the following:
            ``(10) voluntary public and private parental choice 
        programs that--
                    ``(A) are located in an area that has the greatest 
                numbers or percentages of children--
                            ``(i) living in areas with a high 
                        concentration of low-income families;
                            ``(ii) from low-income families; or
                            ``(iii) living in sparsely populated areas;
                    ``(B) ensure that participation in such a voluntary 
                public and private parental choice program is limited 
                to families whose family income does not exceed 185 
                percent of the poverty line;
                    ``(C) ensure that--
                            ``(i) the maximum amount of a voluntary 
                        public and private parental choice scholarship 
                        does not exceed the per pupil expenditure of 
                        the local educational agency in which an 
                        applicant for a voluntary public and private 
                        parental choice scholarship resides; and
                            ``(ii) the minimum amount of a voluntary 
                        public and private parental choice scholarship 
                        is not less than 60 percent of the per pupil 
                        expenditure of the local educational agency in 
                        which an applicant for a voluntary public and 
                        private parental choice scholarship resides or 
                        the cost of tuition at a private school, 
                        whichever is less;
                    ``(D) ensure that for a private school that chooses 
                to participate in a voluntary public and private 
                parental choice program--
                            ``(i) such a school is permitted to impose 
                        the same academic requirements for all 
                        students, including students selected for a 
                        scholarship as provided under this paragraph;
                            ``(ii) receipt of funds under this title is 
                        not conditioned with requirements or 
                        regulations that preclude the use of such funds 
                        for sectarian educational purposes or require 
                        removal of religious art, icons, scripture, or 
                        other symbols; and
                            ``(iii) such a school is in compliance with 
                        all State requirements applicable to the 
                        operation of a private school that are in 
                        effect in the year preceding the date of the 
                        enactment of the Renewing America's Schools 
                        Act;
                    ``(E) may allow State, local, and private funds to 
                be used for voluntary public and private parental 
                choice programs; and
                    ``(F) ensure priority for students who were 
                enrolled in a public school in the school year 
                preceding the school year in which a voluntary public 
                and private parental choice school begins operation.''.

SEC. 204. EVALUATION.

    Part D of title VI of the Elementary and Secondary Education Act of 
1965 is amended--
            (1) by adding at the end of section 6402 the following new 
        subsection:
    ``(j) Application.--This section shall not apply to funds that a 
State or local educational agency uses to establish a voluntary public 
and private parental choice program in accordance with section 
6301(b)(9).''; and
            (2) by adding at the end of such part the following new 
        sections:

``SEC. 6404. EVALUATION.

    ``(a) Annual Evaluation.--
            ``(1) Contract.--The Comptroller General of the United 
        States shall enter into a contract, with an evaluating agency 
        that has demonstrated experience in conducting evaluations, for 
        the conduct of an ongoing rigorous evaluation of the programs 
        established under section 6301(b)(9).
            ``(2) Annual evaluation requirement.--The contract 
        described in paragraph (1) shall require the evaluating agency 
        entering into such contract to evaluate annually each program 
        established under section 6301(b)(9) in accordance with the 
        evaluation criteria described in subsection (b).
            ``(3) Transmission.--The contract described in paragraph 
        (1) shall require the evaluating agency entering into such 
        contract to transmit to the Comptroller General of the United 
        States the findings of each annual evaluation under paragraph 
        (1).
    ``(b) Evaluation Criteria.--The Comptroller General of the United 
States, in consultation with the Secretary, shall establish minimum 
criteria for evaluating each program established under section 
6301(b)(9). Such criteria shall provide for--
            ``(1) a description of the implementation of each program 
        established under section 6301(b)(9) and the program's effects 
        on all participants, schools, and communities in the program 
        area, with particular attention given to the effect of parent 
        participation in the life of the school and the level of 
        parental satisfaction with the program; and
            ``(2) a comparison of the educational achievement of all 
        students in the program area, including a comparison between--
                    ``(A) students receiving a voluntary public and 
                private parental choice scholarships under section 
                6301(b)(9); and
                    ``(B) students not receiving a voluntary public and 
                private parental choice scholarships under such 
                section.
    ``(c) Evaluation Funds.--Pursuant to the authority provided under 
section 14701, the Secretary shall reserve not more than 0.50 percent 
of the amount of funds made available under section 6002 to carry out 
this section.

``SEC. 6405. APPLICABILITY.

    ``(a) Not School Aid.--Subject to subsection (b), funds used under 
this title to establish a voluntary public and private parental choice 
program shall be considered assistance to the student and shall not be 
considered as assistance to any school that chooses to participate in 
such program.
    ``(b) No Federal Control.--The Secretary is not permitted to 
exercise any direction, supervision, or control over curricula, program 
of instruction, administration, or personnel of any school that chooses 
to participate in a voluntary public and private choice program 
established under 6309(b)(9).''.

         TITLE III--A+ ACCOUNTS FOR PUBLIC AND PRIVATE SCHOOLS

SEC. 301. SHORT TITLE.

    This title may be cited as the ``A+ Accounts for Public and Private 
Schools Act''.

SEC. 302. MODIFICATIONS TO EDUCATION INDIVIDUAL RETIREMENT ACCOUNTS.

    (a) Tax-Free Expenditures for Elementary and Secondary School 
Expenses.--
            (1) In general.--Section 530(b)(2) of the Internal Revenue 
        Code of 1986 is amended to read as follows:
            ``(2) Qualified education expenses.--
                    ``(A) In general.--The term `qualified education 
                expenses' means--
                            ``(i) qualified higher education expenses 
                        (as defined in section 529(e)(3)), and
                            ``(ii) qualified elementary and secondary 
                        education expenses (as defined in paragraph 
                        (4)).
                Such expenses shall be reduced as provided in section 
                25A(g)(2) but only with respect to amounts in the 
                account which are attributable to contributions for any 
                taxable year ending before January 1, 2004, and 
                earnings on such contributions.
                    ``(B) Qualified state tuition programs.--Such term 
                shall include amounts paid or incurred to purchase 
                tuition credits or certificates, or to make 
                contributions to an account, under a qualified State 
                tuition program (as defined in section 529(b)) for the 
                benefit of the beneficiary of the account.''.
            (2) Qualified elementary and secondary education 
        expenses.--Section 530(b) of such Code is amended by adding at 
        the end the following new paragraph:
            ``(4) Qualified elementary and secondary education 
        expenses.--
                    ``(A) In general.--The term `qualified elementary 
                and secondary education expenses' means tuition, fees, 
                tutoring, special needs services, books, supplies, 
                computer equipment (including related software and 
                services) and other equipment, transportation, and 
                supplementary expenses required for the enrollment or 
                attendance of the designated beneficiary of the trust 
                at a public, private, or religious school.
                    ``(B) Special rule for homeschooling.--Such term 
                shall include expenses described in subparagraph (A) 
                required for education provided for homeschooling if 
                the requirements of any applicable State or local law 
                are met with respect to such education.
                    ``(C) School.--The term `school' means any school 
                which provides elementary education or secondary 
                education (through grade 12), as determined under State 
                law.''.
            (3) Conforming amendments.--Subsections (b)(1) and (d)(2) 
        of section 530 of such Code are each amended by striking 
        ``higher'' each place it appears in the text and heading 
        thereof.
    (b) Temporary Increase in Maximum Annual Contributions.--
            (1) In general.--Section 530(b)(1)(A)(iii) of such Code is 
        amended by striking ``$500'' and inserting ``the contribution 
        limit for such taxable year''.
            (2) Contribution limit.--Section 530(b) of such Code, 
        amended by subsection (a)(2) of this section, is amended by 
        adding at the end the following new paragraph:
            ``(5) Contribution limit.--The term `contribution limit' 
        means $2,500 ($500 in the case of any taxable year ending after 
        December 31, 2003).''.
            (3) Conforming amendment.--Section 4973(e)(1)(A) of such 
        Code is amended by striking ``$500'' and inserting ``the 
        contribution limit (as defined in section 530(b)(4)) for such 
        taxable year''.
    (c) Waiver of Age Limitations for Children With Special Needs.--
Paragraph (1) of section 530(b) of such Code is amended by adding at 
the end the following flush sentence:
        ``The age limitations in the preceding sentence shall not apply 
        to any designated beneficiary with special needs (as determined 
        under regulations prescribed by the Secretary).''.
    (d) Corporations Permitted To Contribute to Accounts.--Paragraph 
(1) of section 530(c) of such Code is amended by striking ``The maximum 
amount which a contributor'' and inserting ``In the case of a 
contributor who is an individual, the maximum amount the contributor''.
    (e) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 1998.
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