[Congressional Record (Bound Edition), Volume 147 (2001), Part 6]
[Senate]
[Pages 8169-8171]
[From the U.S. Government Publishing Office, www.gpo.gov]



                           TEXT OF AMENDMENTS

  SA 649. Mr. ENZI (for himself, Ms. Snowe, Mr. Hagel, and Mr. DeWine) 
proposed an amendment to amendment SA 358 submitted by Mr. Jeffords and 
intended to be proposed to the bill (S. 1) to extend programs and 
activities under the Elementary and Secondary Education Act of 1965; as 
follows:

         On page 893, after line 14, add the following:

     SEC. __. FEDERAL PRIORITIES FOR SCHOOL REPAIR AND RENOVATION.

       Title IX, as added by section 901, is amended by adding at 
     the end the following:

                 ``PART B--SCHOOL RENOVATION PRIORITIES

     ``SEC. 9201. GENERALLY APPLICABLE PROVISIONS.

       ``(a) Requirement Relating to Funding of Certain Schools.--
       ``(1) Requirement.--Notwithstanding any other provision of 
     law (including the provisions of this Act) and except as 
     provided in section 9202(e)(1), in administering any Federal 
     program to provide assistance for school construction, 
     renovation, or repair the Secretary of Education shall ensure 
     that assistance under such program is provided to meet the 
     construction or renovation needs of schools receiving Impact 
     Aid, schools under the jurisdiction of the Department of 
     Defense, and Indian and Bureau of Indian Affairs funded 
     schools prior to making any such assistance available under 
     such program to other schools.
       ``(2) Rule of construction.--Nothing in this subsection 
     shall be construed to apply to school construction bond 
     programs or school renovation bond programs.

[[Page 8170]]

       ``(b) Targeting of Certain Schools.--
       ``(1) General rule.--Notwithstanding any other provision of 
     law (including the provisions of this Act), amounts made 
     available under any Federal program to provide assistance for 
     school construction, renovation, or repair for a fiscal year 
     and remaining available after the requirement of subsection 
     (a) has been complied with and after amounts have been made 
     available under section 9202(e)(1), shall be made available--
       ``(A) for qualified public school facility construction 
     projects described in paragraph (2); and
       ``(B) to local educational agencies in States described in 
     paragraph (3) for the renovation and construction of public 
     education facilities in grades kindergarten through grade 12.
       ``(2) Qualified public school facility construction 
     project.--In paragraph (1)(A), the term `qualified public 
     school facility construction project' means a construction 
     project selected by the State with respect to a public school 
     facility--
       ``(A) 50 percent of the enrollment population of which is 
     from families whose income does not exceed the poverty level, 
     as determined by annual census data published by the 
     Department of Labor;
       ``(B) that is located in a district in which the district 
     bonded indebtedness or the indebtedness authorized by the 
     district electorate and payable from general property tax 
     levies of the districts within the agency's jurisdiction has 
     reached or exceeded 90 percent of the debt limitation imposed 
     upon school districts pursuant to State law;
       ``(C) with respect to which the local educational agency 
     has made its best effort to maintain the existing facility; 
     and
       ``(D) that is among the neediest 10 percent of all public 
     elementary and secondary school facilities in the State, as 
     determined by the State.
       ``(3) State eligibility.--
       ``(A) In general.--A State described in this paragraph 
     shall be deemed an eligible State in which local educational 
     agencies may receive grants for school renovation and 
     construction if the State is appropriately participating in 
     the renovation and construction of public education 
     facilities in grades kindergarten through grade 12, as 
     determined by the State. The State shall demonstrate that it 
     has an operational plan to meet such an obligation.
       ``(B) Rule of construction.--In the case of a State with a 
     school financing law separate from the State's education 
     facilities capital construction plan, nothing in subparagraph 
     (A) shall be construed as affecting the application of such 
     financing law or the eligibility of such a State to receive a 
     grant under this section.
       ``(4) Federal share.--The Federal share of the cost of any 
     project funded under subparagraphs (A) and (B) of paragraph 
     (1) shall not exceed 50 percent. The non-Federal share of the 
     cost of such project may be provided in cash or in kind, 
     fairly evaluated, including services.

     ``SEC. 9202. REVOLVING LOAN PROGRAM

       ``(a) Definitions.--In this section:
       ``(1) Bond.--The term `bond' includes any obligation.
       ``(2) Governor.--The term `Governor' includes the chief 
     executive officer of a State.
       ``(3) 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 that is not owned by a State or local 
     government or any agency or instrumentality of a State or 
     local government.
       ``(4) Qualified school construction bond.--The term 
     `qualified school construction bond' means any bond (or 
     portion of a bond) issued as part of an issue if--
       ``(A) 95 percent or more of the proceeds attributable to 
     such bond (or portion) 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;
       ``(B) the bond is issued by a State, regional, or local 
     entity, with bonding authority; and
       ``(C) the issuer designates such bond (or portion) for 
     purposes of this section.
       ``(5) Secretarial fund.--The term `Secretarial fund' means 
     a fund established by the Secretary to carry out this 
     section.
       ``(6) State.--The term `State' means each of the several 
     States of the United States, the District of Columbia, the 
     Commonwealth of Puerto Rico, the United States 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.
       ``(b) Loan Authority and Other Support.--
       ``(1) Loans and state-administered programs.--
       ``(A) In general.--Except as provided in subparagraph (B), 
     from funds made available to a State under subsection (e) the 
     State, in consultation with the State educational agency--
       ``(i) may use the funds to make annual interest payment on 
     qulified school construction bonds, to support State 
     revolving fund programs or for any other State-administered 
     programs that assist State, regional, and local entities 
     within the State in paying for the cost of construction, 
     rehabilitation, repair, or acquisition described in 
     subsection (a)(4)(A).
       ``(B) States with restrictions.--If, on the date of 
     enactment of this section, a State has in effect a law that 
     prohibits the State from making certain loans described in 
     subparagraph (A)(i), the State, in consultation with the 
     State educational agency, may use the funds described in 
     subparagraph (A) to support the other uses described in 
     subparagraph (A)(i).
       ``(2) Requests.--The Governor of each State desiring 
     assistance under this section shall submit a request to the 
     Secretary of Education at such time and in such manner as the 
     Secretary may require.
       ``(3) Eligibility.--
       ``(A) In general.--Only those States described in 
     subparagraph (B) shall be eligible to receive assistance 
     under this section with respect to a fiscal year.
       ``(B) States described.--With respect to a fiscal year, a 
     State described in this subparagraph is a State that receives 
     assistance under part A of title I for the fiscal year 
     involved in an amount that is less than .4 percent of the 
     total amount made available to all States under such part for 
     such fiscal year.
       ``(4) Priority.--In selecting entities to receive funds 
     under paragraph (1) for projects involving construction, 
     rehabilitation, repair, or acquisition of land for schools, 
     the State shall give priority to entities with projects for 
     schools with greatest need, as determined by the State. In 
     determining the schools with greatest need, the State shall 
     take into consideration whether a school--
       ``(A) is among the schools that have the greatest numbers 
     or percentages of children whose education imposes a higher 
     than average cost per child, such as--
       ``(i) children living in areas with high concentrations of 
     low-income families;
       ``(ii) children from low-income families; and
       ``(iii) children living in sparsely populated areas;
       ``(B) has inadequate school facilities and a low level of 
     resources to meet the need for school facilities;
       ``(C) is located in a rural area;
       ``(D) is among the neediest 40 percent (except that schools 
     described in section 9201(b)(2)(D) shall not be considered 
     for purposes of this paragraph) of all public elementary and 
     secondary schools in the State, as determined by the State; 
     and
       ``(E) meets such criteria as the State may determine to be 
     appropriate.
       ``(c) Repayment.--
       ``(1) In general.--Subject to paragraph (2), a State that 
     uses funds made available under subsection (e) to make a loan 
     or support a State-administered program under subsection 
     (b)(1) shall repay to the Secretarial fund the amount of the 
     loan or support, plus interest, at an annual rate of 4.5 
     percent. A State shall not be required to begin making such 
     repayment until the year immediately following the 15th year 
     for which the State is eligible to receive annual 
     distributions from the fund (which shall be the final year 
     for which the State shall be eligible for such a distribution 
     under this Act). The amount of such loan or support shall be 
     fully repaid during the 10-year period beginning on the 
     expiration of the eligibility of the State under this 
     section.
       ``(2) Exceptions.--
       ``(A) In general.--The interest on the amount made 
     available to a State under subsection (e) shall not accrue, 
     prior to January 1, 2007, unless the amount appropriated to 
     carry out part B of the Individuals with Disabilities 
     Education Act (20 U.S.C. 1411 et seq.) for any fiscal year 
     prior to fiscal year 2007 is sufficient to fully fund such 
     part for the fiscal year at the originally promised level, 
     which promised level would provide to each State 40 percent 
     of the average per-pupil expenditure for providing special 
     education and related services for each child with a 
     disability in the State.
       ``(B) Applicable interest rate.--Effective January 1, 2007, 
     the applicable interest rate that will apply to an amount 
     made available to a State under subsection (e) shall be--
       ``(i) 0 percent with respect to years in which the amount 
     appropriated to carry out part B of the Individuals with 
     Disabilities Education Act (20 U.S.C. 1411 et seq.) is not 
     sufficient to provide to each State at least 20 percent of 
     the average per-pupil expenditure for providing special 
     education and related services for each child with a 
     disability in the State;
       ``(ii) 2.5 percent with respect to years in which the 
     amount described in clause (i) is not sufficient to provide 
     to each State at least 30 percent of such average per-pupil 
     expenditure;
       ``(iii) 3.5 percent with respect to years in which the 
     amount described in clause (i) is not sufficient to provide 
     to each State at least 40 percent of such average per-pupil 
     expenditure; and
       ``(iv) 4.5 percent with respect to years in which the 
     amount described in clause (i) is sufficient to provide to 
     each State at least 40

[[Page 8171]]

     percent of such average per-pupil expenditure.
       ``(d) Federal Responsibilities.--The Secretary shall--
       ``(1) be responsible for ensuring that funds provided under 
     this section are properly distributed;
       ``(2) ensure that funds provided under this section are 
     used only to pay for--
       ``(A) the interest on qualified school construction bonds; 
     or
       ``(B) a cost described in subsection (b)(1)(A)(ii); and
       ``(3) not have authority to approve or disapprove school 
     construction plans assisted pursuant to this section, except 
     to ensure that funds made available under this section are 
     used only to supplement, and not supplant, the amount of 
     school construction, rehabilitation, and repair, and 
     acquisition of land for school facilities, in the State that 
     would have occurred in the absence of such funds.
       ``(e) Funding.--
       ``(1) Set-aside of federal funds.--
       ``(A) In general.--Notwithstanding any other provision of 
     law (including section 9201(a) and the provisions of this 
     Act) there shall be made available to carry out this section 
     for each fiscal year, an amount equal to 20 percent of the 
     total amount of Federal funds appropriated for such fiscal 
     year for Federal programs to provide assistance for school 
     construction, renovation, or repair.
       ``(B) Transfer of funds.--Not later than 60 days after the 
     beginning of each fiscal year, the Secretary of the Treasury 
     shall transfer to the Secretary of Education the amounts 
     described in subparagraph with respect to the fiscal year 
     involved and the Secretary shall utilize such amounts to 
     carry out this section.
       ``(2) Allocations.--
       ``(A) In general.--Subject to subparagraph (C), of the 
     amount available under paragraph (1) for a fiscal year, the 
     Secretary shall make available to each State submitting a 
     request under this section a loan amount that bears the same 
     relation to such available amount as the amount the State 
     received under part A of title I for fiscal year 2001 bears 
     to the loan amount received by all States under such part for 
     such year.




       ``(B) Disbursal.--The Secretary shall disburse the amount 
     made available to a State under subparagraph (A) or (C), on 
     an annual basis, during the period beginning on October 1, 
     2001, and ending September 30, 2018.
       ``(C) Small state minimum.--
       ``(i) Minimum.--No State shall receive a loan amount under 
     subparagraph (A) for a fiscal year that is less than an 
     amount equal to .5 percent of the total amount made available 
     for such fiscal year under paragraph (1).
       ``(ii) States.--In this subparagraph, the term `State' 
     means each of the several States of the United States, the 
     District of Columbia, and the Commonwealth of Puerto Rico.''.

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