[Congressional Record Volume 148, Number 44 (Thursday, April 18, 2002)]
[Senate]
[Pages S2954-S2955]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. HARKIN (for himself, Mrs. Clinton, Mrs. Carnahan, and Mrs. 
        Feinstein):
  S. 2195. A bill to establish State infrastructure banks for 
education; to the Committees on Health, Education, Labor, and Pensions.
  Mr. HARKIN. Madam President, the need to rebuild our Nation's 
crumbling schools is clear. The National Center for Education 
Statistics estimates that it would cost $127 billion to repair, 
modernize, and renovate U.S. schools. Fourteen million U.S. students 
currently attend schools that report a need for extensive repair. And a 
study by the American Society of Civil Engineers concludes that public 
schools are in worse condition than any other sector of our national 
infrastructure.
  And yet the Federal Government is doing far too little to help.
  That is why I am introducing the Investing for Tomorrow's Schools Act 
of 2002. I am pleased to have Senators Clinton, Carnahan, and Feinstein 
join with me as co-sponsors.
  This legislation allows States to create ``infrastructure banks'' for 
public schools and libraries. Modeled after State revolving funds, 
which have been used successfully to finance transportation projects, 
these banks would offer low-interest loans to school districts for 
building or repairing public schools, and to public libraries for 
building or repairing libraries. As the loans are repaid, the bank 
funds would be replenished, and the banks could make new loans to other 
schools and libraries. Once the banks got rolling, they would sustain 
themselves, without any need for ongoing Federal appropriations.
  After more than a decade of fighting to rebuild our Nation's 
deteriorating schools, I am well aware that this bill is just one part 
of the solution. Two years ago, as the ranking member on the Senate 
Labor, HHS, and Education Appropriations Subcommittee, I led the effort 
to provide $1.2 billion in grants to schools that urgently need 
repairs. Last year, the Senate approved another $925 million on a 
bipartisan vote, but unfortunately that funding was eliminated during 
conference negotiations with the House.
  I also introduced the America's Better Classrooms Act, which would 
provide tax credits to subsidize $25 billion in new construction. That 
legislation is still pending, and I am hopeful that it will succeed. 
The Investing for Tomorrow 's School Act is the final piece of the 
puzzle.
  If the nicest buildings our kids see in their hometowns are shopping 
malls, sports arenas and movie theaters, and the most rundown place 
they see is their school, what kind of signal are we sending? We can 
and must do better for our children. The Investing for Tomorrow's 
School Act should be a critical part of our strategy to improve 
education, and I urge my colleagues to support it.
  I ask that the text of the bill be printed in the Record.
  There being no objection, the bill was ordered to be printed in the 
Record, as follows:

                                S. 2195

       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 ``Investing for Tomorrow's 
     Schools Act of 2002''.

     SEC. 2. FINDINGS.

       The Congress finds the following:
       (1) According to a 1996 study conducted by the American 
     School & University, $10,420,000,000 was spent to address the 
     Nation's education infrastructure needs in 1995, with the 
     average total cost of a new high school at $15,400,000.
       (2) According to the National Center for Education 
     Statistics, an estimated $127,000,000,000 in repairs, 
     renovations, and modernizations is needed to put schools in 
     the United States into good overall condition.
       (3) Approximately 14,000,000 American students attend 
     schools that report the need for extensive repair or 
     replacement of 1 or more buildings.
       (4) Academic research has proven that there is a direct 
     correlation between the condition of school facilities and 
     student achievement. At Georgetown University, researchers 
     found that students assigned to schools in poor conditions 
     can be expected to fall 10.9 percentage points behind those 
     in buildings in excellent condition. Similar studies have 
     demonstrated improvement of up to 20 percent in test scores 
     when students were moved from a poor facility to a new 
     facility.
       (5) The Director of Education and Employment Issues at the 
     Government Accounting Office testified that nearly 52 percent 
     of schools, affecting 21,300,000 students, reported 
     insufficient technology elements for 6 or more areas.
       (6) Large numbers of local educational agencies have 
     difficulties securing financing for school facility 
     improvement.
       (7) The challenges facing our Nation's public elementary 
     schools and secondary schools and libraries require the 
     concerted efforts of all levels of government and all sectors 
     of the community.
       (8) The United States competitive position within the world 
     economy is vulnerable if America's future workforce continues 
     to be educated in schools and libraries not equipped for the 
     21st century.
       (9) The deplorable state of collections in America's public 
     school libraries has increased the demands on public 
     libraries. In many instances, public libraries substitute for 
     school libraries, creating a higher demand for material and 
     physical space to house literature and educational computer 
     equipment.
       (10) Research shows that 50 percent of a child's 
     intellectual development takes place before age 4. The 
     Nation's public and school libraries play a critical role in 
     a child's early development because the libraries provide a 
     wealth of books and other resources that can give every child 
     a head start on life and learning.

     SEC. 3. STATE INFRASTRUCTURE BANK PILOT PROGRAM.

       (a) Establishment.--
       (1) Cooperative agreements.--The Secretary of Education 
     (hereafter in this Act referred to as the ``Secretary''), in 
     consultation with the Secretary of the Treasury, may enter 
     into cooperative agreements with States under which--
       (A) States establish State infrastructure banks and 
     multistate infrastructure banks for the purpose of providing 
     the loans described in subparagraph (B); and
       (B) the Secretary awards grants to such States to be used 
     as initial capital for the purpose of making loans--
       (i) to local educational agencies to enable the agencies to 
     build or repair elementary schools or secondary schools that 
     provide free public education; and
       (ii) to public libraries to enable the libraries to build 
     or repair library facilities.
       (2) Interstate compacts.--
       (A) Consent.--Congress grants consent to any 2 or more 
     States, entering into a cooperative agreement under paragraph 
     (1) with the Secretary for the establishment of a multistate 
     infrastructure bank, to enter into an interstate compact 
     establishing a multistate infrastructure bank in accordance 
     with this section.
       (B) Reservation of rights.--Congress expressly reserves the 
     right to alter, amend, or repeal this section and any 
     interstate compact entered into pursuant to this section.
       (b) Repayments.--Each infrastructure bank established under 
     subsection (a) shall apply repayments of principal and 
     interest on loans funded by the grant received under 
     subsection (a) to the making of additional loans.
       (c) Infrastructure Bank Requirements.--A State establishing 
     an infrastructure bank under this section shall--
       (1) contribute in each account of the bank from non-Federal 
     sources an amount equal to not less than 25 percent of the 
     amount of each capitalization grant made to the bank under 
     subsection (a);
       (2) identify an operating entity of the State as recipient 
     of the grant if the entity has the capacity to manage loan 
     funds and issue debt instruments of the State for purposes of 
     leveraging the funds;
       (3) allow such funds to be used as reserve for debt issued 
     by the State, so long as proceeds are deposited in the fund 
     for loan purposes;
       (4) ensure that investment income generated by funds 
     contributed to an account of the bank will be--
       (A) credited to the account;
       (B) available for use in providing loans to projects 
     eligible for assistance from the account; and
       (C) invested in United States Treasury securities, bank 
     deposits, or such other financing instruments as the 
     Secretary may approve to earn interest to enhance the 
     leveraging of projects assisted by the bank;
       (5) ensure that any loan from the bank will bear interest 
     at or below the lowest interest rates being offered for 
     bonds, the income from which is exempt from Federal taxation, 
     as determined by the State, to make the project that is the 
     subject of the loan feasible;
       (6) ensure that repayment of any loan from the bank will 
     commence not later than 1 year after the project has been 
     completed;
       (7) ensure that the term for repaying any loan will not 
     exceed 30 years after the date of the first payment on the 
     loan under paragraph (6); and
       (8) require the bank to make an annual report to the 
     Secretary on its status, and make such other reports as the 
     Secretary may require by guidelines.

[[Page S2955]]

       (d) Forms of Assistance From Infrastructure Banks.--
       (1) In general.--An infrastructure bank established under 
     this section may make a loan to a local educational agency or 
     a public library in an amount equal to all or part of the 
     cost of carrying out a project eligible for assistance under 
     subsection (e).
       (2) Applications for loans.--
       (A) In general.--A local educational agency or public 
     library desiring a loan under this Act shall submit to an 
     infrastructure bank an application that includes--
       (i) in the case of a renovation project--

       (I) a description of each architectural, civil, structural, 
     mechanical, or electrical deficiency to be corrected with 
     loan funds and the priorities to be applied; and
       (II) a description of the criteria used by the applicant to 
     determine the type of corrective action necessary for the 
     renovation of a facility;

       (ii) a description of any improvements to be made and a 
     cost estimate for the improvements;
       (iii) a description of how work undertaken with the loan 
     will promote energy conservation; and
       (iv) such other information as the infrastructure bank may 
     require.
       (B) Timing.--An infrastructure bank shall take final action 
     on a completed application submitted to it in accordance with 
     this subsection not later than 90 days after the date of the 
     submission of the application.
       (3) Criteria for loans.--In considering an application for 
     a loan, an infrastructure bank shall consider--
       (A) the extent to which the local educational agency or 
     public library desiring a loan would otherwise lack the 
     fiscal capacity, including the ability to raise funds through 
     the full use of such bonding capacity of the agency or 
     library, to undertake the project proposed in the 
     application;
       (B) in the case of a local educational agency, the threat 
     that the condition of the physical plant in the proposed 
     project poses to the safety and well-being of students;
       (C) the demonstrated need for the construction, 
     reconstruction, or renovation based on the condition of the 
     facility in the proposed project; and
       (D) the age of the facility proposed to be reconstructed, 
     renovated, or replaced.
       (e) Qualifying Projects.--
       (1) In general.--A project is eligible for a loan from an 
     infrastructure bank if it is a project that consists of--
       (A) the construction of a new elementary school or 
     secondary school to meet the needs imposed by enrollment 
     growth;
       (B) 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 lighting equipment;
       (C) an activity to increase physical safety at the 
     educational facility involved;
       (D) an activity to enhance the educational facility 
     involved to provide access for students, teachers, and other 
     individuals with disabilities;
       (E) an activity to address environmental hazards at the 
     educational facility involved, such as poor ventilation, 
     indoor air quality, or lighting;
       (F) the provision of basic infrastructure that facilitates 
     educational technology, such as communications outlets, 
     electrical systems, power outlets, or a communication closet;
       (G) work that will bring an educational facility into 
     conformity with the requirements of--
       (i) environmental protection or health and safety programs 
     mandated by Federal, State, or local law, if such 
     requirements were not in effect when the facility was 
     initially constructed; and
       (ii) hazardous waste disposal, treatment, and storage 
     requirements mandated by the Solid Waste Disposal Act (42 
     U.S.C. 6901 et seq.) or similar State laws;
       (H) work that will enable efficient use of available energy 
     resources;
       (I) work to detect, remove, or otherwise contain asbestos 
     hazards in educational facilities; or
       (J) work to construct new public library facilities or 
     repair or upgrade existing public library facilities.
       (2) Davis-bacon.--The wage requirements of the Act of March 
     3, 1931 (referred to as the ``Davis-Bacon Act'' (40 U.S.C. 
     276a et seq.)) shall apply with respect to individuals 
     employed on the projects described in paragraph (1).
       (f) Supplementation.--Any loan made by an infrastructure 
     bank shall be used to supplement and not supplant other 
     Federal, State, and local funds available to carry out school 
     or library construction, renovation, or repair.
       (g) Limitation on Repayments.--Notwithstanding any other 
     provision of law, the repayment of a loan from an 
     infrastructure bank under this section may not be credited 
     toward the non-Federal share of the cost of any project.
       (h) Secretarial Requirements.--In administering this 
     section, the Secretary shall specify procedures and 
     guidelines for establishing, operating, and providing 
     assistance from an infrastructure bank.
       (i) United States Not Obligated.--The contribution of 
     Federal funds into an infrastructure bank established under 
     this section shall not be construed as a commitment, 
     guarantee, or obligation on the part of the United States to 
     any third party, nor shall any third party have any right 
     against the United States for payment solely by virtue of the 
     contribution. Any security or debt financing instrument 
     issued by the infrastructure bank shall expressly state that 
     the security or instrument does not constitute a commitment, 
     guarantee, or obligation of the United States.
       (j) Management of Federal Funds.--Sections 3335 and 6503 of 
     title 31, United States Code, shall not apply to funds 
     contributed under this section.
       (k) Program Administration.--A State may expend an amount 
     not to exceed 2 percent of the grant funds contributed to an 
     infrastructure bank established by a State or States under 
     this section to pay the reasonable costs of administering the 
     infrastructure bank.
       (l) Secretarial Review and Report.--The Secretary shall--
       (1) review the financial condition of each infrastructure 
     bank established under this section; and
       (2) transmit to Congress a report on the results of such 
     review not later than 90 days after the completion of the 
     review.

     SEC. 4. DEFINITIONS.

       In this Act:
       (1) Elementary school, free public education, local 
     educational agency, and secondary school.--The terms 
     ``elementary school'', ``free public education'', ``local 
     educational agency'', and ``secondary school'' have the same 
     meanings as in section 14101 of the Elementary and Secondary 
     Education Act of 1965 (20 U.S.C. 8801);
       (2) Outlying area.--The term ``outlying area'' means the 
     Virgin Islands, Guam, 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;
       (3) Public library.--The term ``public library''--
       (A) means a library that serves free of charge all 
     residents of a community, district, or region, and receives 
     its financial support in whole or in part from public funds; 
     and
       (B) includes a research library, which, for purposes of 
     this subparagraph, means a library that--
       (i) makes its services available to the public free of 
     charge;
       (ii) has extensive collections of books, manuscripts, and 
     other materials suitable for scholarly research which are not 
     available to the public through public libraries;
       (iii) engages in the dissemination of humanistic knowledge 
     through services to readers, fellowships, educational and 
     cultural programs, publication of significant research, and 
     other activities; and
       (iv) is not an integral part of an institution of higher 
     education; and
       (4) State.--The term ``State'' means each of the 50 States, 
     the District of Columbia, the Commonwealth of Puerto Rico, 
     and each of the outlying areas.
                                 ______