Amends the General Education Provisions Act to provide for the application of certain labor standards to projects financed under this Act.
Amends the Workforce Investment Act of 1998 to establish provisions concerning employment and training activities related to the construction or reconstruction of public school facilities.
[Congressional Bills 106th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4094 Introduced in House (IH)]
106th CONGRESS
2d Session
H. R. 4094
To amend the Internal Revenue Code of 1986 to expand the incentives for
the construction and renovation of public schools.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
March 28, 2000
Mrs. Johnson of Connecticut (for herself, Mr. Rangel, Mr. Houghton, Mr.
Stark, Mr. Matsui, Mr. Coyne, Mr. Levin, Mr. Cardin, Mr. McDermott, Mr.
Kleczka, Mr. Lewis of Georgia, Mr. Neal of Massachusetts, Mr. McNulty,
Mr. Becerra, Mrs. Thurman, Mrs. Morella, Mr. Gephardt, Mr. Gilchrest,
Mr. Bonior, Mr. Gilman, Mr. Traficant, Mr. Quinn, Mr. Doyle, Mr. Ney,
Mr. Capuano, Mr. Horn, Mr. Meeks of New York, Mr. Leach, Mr. Forbes,
Mr. Boehlert, Mr. Baldacci, Mr. Ehlers, Mr. Fattah, Mrs. Kelly, Mr.
Engel, Mr. McHugh, Mrs. Lowey, Mr. Franks of New Jersey, Mrs. Capps,
Mr. Walsh, Mrs. Maloney of New York, Mr. Saxton, Mr. Barcia, Mr.
Crowley, Mr. Conyers, Mrs. Clayton, Mr. Farr of California, Mrs.
Tauscher, Mr. Blagojevich, Mr. Nadler, Mr. Moakley, Mr. Hinchey, Mr.
Pastor, Mrs. McCarthy of New York, Mr. Abercrombie, Mr. Brown of Ohio,
Ms. Velazquez, Mr. Skelton, Mr. Weiner, Mr. Etheridge, Mrs.
Christensen, Mr. Dixon, Mr. Mascara, Mr. Oberstar, Mr. Pallone, Mr.
Bishop, Mr. Sandlin, Mr. Frank of Massachusetts, Ms. Jackson-Lee of
Texas, Ms. Roybal-Allard, Ms. Lofgren, Ms. Woolsey, Mr. Tierney, Mr.
Filner, Mr. Borski, Mr. Frost, Mr. Payne, Mrs. Napolitano, Mr. Baca,
Mr. Blumenauer, Mr. Weygand, Ms. Waters, Mr. Owens, Mrs. Jones of Ohio,
Mr. Kennedy of Rhode Island, Ms. Norton, Mr. Waxman, Mr. Dingell, Mr.
Strickland, Ms. Sanchez, Mr. Lantos, Mr. Allen, Mr. Baird, Mr. Barrett
of Wisconsin, Mr. Berman, Ms. Carson, Mr. Deutsch, Mr. Green of Texas,
Mr. Hoyer, Mr. Snyder, Mr. Sherman, Mr. Towns, Mr. Reyes, Mr. Maloney
of Connecticut, Mr. Kildee, Ms. Schakowsky, Mr. Wu, Mr. Clay, Mrs. Meek
of Florida, Mr. Ackerman, Mr. McGovern, Mr. Menendez, Mr. McIntyre, Mr.
Jefferson, Mr. Pomeroy, and Ms. Berkley) introduced the following bill;
which was referred to the Committee on Ways and Means, and in addition
to the Committee on Education and the Workforce, 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 amend the Internal Revenue Code of 1986 to expand the incentives for
the construction and renovation of public schools.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``America's Better Classroom Act of
2000''.
SEC. 2. EXPANSION OF INCENTIVES FOR PUBLIC SCHOOLS.
(a) In General.--Chapter 1 of the Internal Revenue Code of 1986 is
amended by adding at the end the following new subchapter:
``Subchapter X--Public School Modernization Provisions
``Sec. 1400F. Credit to holders of
qualified public school
modernization bonds.
``Sec. 1400G. Qualified school
construction bonds.
``Sec. 1400H. Qualified zone academy
bonds.
``SEC. 1400F. CREDIT TO HOLDERS OF QUALIFIED PUBLIC SCHOOL
MODERNIZATION BONDS.
``(a) Allowance of Credit.--In the case of a taxpayer who holds a
qualified public school modernization 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 public school modernization 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 public school modernization 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) 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.
``(d) Qualified Public School Modernization Bond; Credit Allowance
Date.--For purposes of this section--
``(1) Qualified public school modernization bond.--The term
`qualified public school modernization bond' means--
``(A) a qualified zone academy bond, and
``(B) a qualified school construction bond.
``(2) 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.
``(e) Other Definitions.--For purposes of this subchapter--
``(1) 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.
``(2) Bond.--The term `bond' includes any obligation.
``(3) State.--The term `State' includes the District of
Columbia and any possession of the United States.
``(4) 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 (c)) and the amount so
included shall be treated as interest income.
``(g) Bonds Held by Regulated Investment Companies.--If any
qualified public school modernization 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 public school
modernization 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 public school modernization 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 public school modernization
bonds 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 public school modernization
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 September 30, 2005.
``SEC. 1400G. QUALIFIED SCHOOL CONSTRUCTION BONDS.
``(a) Qualified School Construction Bond.--For purposes of this
subchapter, the term `qualified school construction bond' means any
bond issued as part of an issue if--
``(1) 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,
``(2) the bond is issued by a State or local government
within the jurisdiction of which such school is located,
``(3) the issuer designates such bond for purposes of this
section, and
``(4) the term of each bond which is part of such issue
does not exceed 15 years.
``(b) Limitation on Amount of Bonds Designated.--The maximum
aggregate face amount of bonds issued during any calendar year which
may be designated under subsection (a) by any issuer shall not exceed
the sum of--
``(1) the limitation amount allocated under subsection (d)
for such calendar year to such issuer, and
``(2) if such issuer is a large local educational agency
(as defined in subsection (e)(4)) or is issuing on behalf of
such an agency, the limitation amount allocated under
subsection (e) for such calendar year to such agency.
``(c) National Limitation on Amount of Bonds Designated.--There is
a national qualified school construction bond limitation for each
calendar year. Such limitation is--
``(1) $11,000,000,000 for 2001,
``(2) $11,000,000,000 for 2002, and
``(3) except as provided in subsection (f), zero after
2002.
``(d) 60 Percent of Limitation Allocated Among States.--
``(1) In general.--60 percent of the limitation applicable
under subsection (c) for any calendar year shall be allocated
by the Secretary 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. The limitation amount allocated to a
State under the preceding sentence shall be allocated by the
State to issuers within such State and such allocations may be
made only if there is an approved State application.
``(2) Minimum allocations to states.--
``(A) In general.--The Secretary shall adjust the
allocations under this subsection for any calendar year
for each State to the extent necessary to ensure that
the sum of--
``(i) the amount allocated to such State
under this subsection for such year, and
``(ii) the aggregate amounts allocated
under subsection (e) to large local educational
agencies in such State for such year,
is not less than an amount equal to such State's
minimum percentage of the amount to be allocated under
paragraph (1) for the calendar year.
``(B) 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.
``(3) Allocations to certain possessions.--The amount to be
allocated under paragraph (1) to any possession of the United
States other than Puerto Rico shall be the amount which would
have been allocated if all allocations under paragraph (1) 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 paragraph (1) shall be reduced by the aggregate
amount allocated under this paragraph to possessions of the
United States.
``(4) Allocations for indian schools.--In addition to the
amounts otherwise allocated under this subsection, $200,000,000
for calendar year 2001, and $200,000,000 for calendar year
2002, shall be allocated by the Secretary of the Interior for
purposes of the construction, rehabilitation, and repair of
schools funded by the Bureau of Indian Affairs. In the case of
amounts allocated under the preceding sentence, Indian tribal
governments (as defined in section 7871) shall be treated as
qualified issuers for purposes of this subchapter.
``(5) Approved state application.--For purposes of
paragraph (1), the term `approved State application' means an
application which is approved by the Secretary of Education and
which includes--
``(A) 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, and
``(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
``(B) 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) ensure that the needs of both rural
and urban areas will be recognized,
``(ii) give highest priority to localities
with the greatest needs, as demonstrated by
inadequate school facilities coupled with a low
level of resources to meet those needs,
``(iii) use its allocation under this
subsection to assist localities that lack the
fiscal capacity to issue bonds on their own,
and
``(iv) 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.
Any allocation under paragraph (1) by a State shall be binding
if such State reasonably determined that the allocation was in
accordance with the plan approved under this paragraph.
``(e) 40 Percent of Limitation Allocated Among Largest School
Districts.--
``(1) In general.--40 percent of the limitation applicable
under subsection (c) for any calendar year shall be allocated
under paragraph (2) by the Secretary among local educational agencies
which are large local educational agencies for such year. No qualified
school construction bond may be issued by reason of an allocation to a
large local educational agency under the preceding sentence unless such
agency has an approved local application.
``(2) Allocation formula.--The amount to be allocated under
paragraph (1) for any calendar year shall be allocated among
large local educational agencies in proportion to the
respective amounts each such agency 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.
``(3) Allocation of unused limitation to state.--The amount
allocated under this subsection to a large local educational
agency for any calendar year may be reallocated by such agency
to the State in which such agency is located for such calendar
year. Any amount reallocated to a State under the preceding
sentence may be allocated as provided in subsection (d)(1).
``(4) Large local educational agency.--For purposes of this
section, the term `large local educational agency' means, with
respect to a calendar year, any local educational agency if
such agency is--
``(A) among the 100 local educational agencies with
the largest numbers of children aged 5 through 17 from
families living below the poverty level, as determined
by the Secretary using the most recent data available
from the Department of Commerce that are satisfactory
to the Secretary, or
``(B) 1 of not more than 25 local educational
agencies (other than those described in subparagraph
(A)) that the Secretary of Education determines (based
on the most recent data available satisfactory to the
Secretary) are in particular need of assistance, based
on a low level of resources for school construction, a
high level of enrollment growth, or such other factors
as the Secretary deems appropriate.
``(5) Approved local application.--For purposes of
paragraph (1), the term `approved local application' means an
application which is approved by the Secretary of Education and
which includes--
``(A) the results of a recent publicly-available
survey (undertaken by the local educational agency or
the State with the involvement of school officials,
members of the public, and experts in school
construction and management) of such agency's needs for
public school facilities, including descriptions of--
``(i) the overall condition of the local
educational agency's school facilities,
including health and safety problems,
``(ii) the capacity of the agency's schools
to house projected enrollments, and
``(iii) the extent to which the agency's
schools offer the physical infrastructure
needed to provide a high-quality education to
all students,
``(B) a description of how the local educational
agency will use its allocation under this subsection to
address the needs identified under subparagraph (A),
and
``(C) a description of how the local educational
agency will ensure that its allocation under this
subsection is used only to supplement, and not
supplant, the amount of school construction,
rehabilitation, or repair in the locality that would
have occurred in the absence of such allocation.
A rule similar to the rule of the last sentence of subsection
(d)(6) shall apply for purposes of this paragraph.
``(f) Carryover of Unused Limitation.--If for any calendar year--
``(1) the amount allocated under subsection (d) to any
State, exceeds
``(2) the amount of bonds issued during such year which are
designated under subsection (a) pursuant to such allocation,
the limitation amount under such subsection for such State for the
following calendar year shall be increased by the amount of such
excess. A similar rule shall apply to the amounts allocated under
subsection (d)(5) or (e).
``(g) Special Rules Relating to Arbitrage.--
``(1) In general.--A bond shall not be treated as failing
to meet the requirement of subsection (a)(1) solely by reason
of the fact that the proceeds of the issue of which such bond
is a part are invested for a temporary period (but not more
than 36 months) until such proceeds are needed for the purpose
for which such issue was issued.
``(2) Binding commitment requirement.--Paragraph (1) shall
apply to an issue only if, as of the date of issuance, there is
a reasonable expectation that--
``(A) at least 10 percent of the proceeds of the
issue will be spent within the 6-month period beginning
on such date for the purpose for which such issue was
issued, and
``(B) the remaining proceeds of the issue will be
spent with due diligence for such purpose.
``(3) Earnings on proceeds.--Any earnings on proceeds
during the temporary period shall be treated as proceeds of the
issue for purposes of applying subsection (a)(1) and paragraph
(1) of this subsection.
``SEC. 1400H. QUALIFIED ZONE ACADEMY BONDS.
``(a) Qualified Zone Academy Bond.--For purposes of this
subchapter--
``(1) In general.--The term `qualified zone academy 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 a qualified purpose with
respect to a qualified zone academy established by a
local educational agency,
``(B) the bond is issued by a State or local
government within the jurisdiction of which such
academy is located,
``(C) the issuer--
``(i) designates such bond for purposes of
this section,
``(ii) certifies that it has written
assurances that the private business
contribution requirement of paragraph (2) will
be met with respect to such academy, and
``(iii) certifies that it has the written
approval of the local educational agency for
such bond issuance, and
``(D) the term of each bond which is part of such
issue does not exceed 15 years.
Rules similar to the rules of section 1400G(g) shall apply for
purposes of paragraph (1).
``(2) Private business contribution requirement.--
``(A) In general.--For purposes of paragraph (1),
the private business contribution requirement of this
paragraph is met with respect to any issue if the local
educational agency that established the qualified zone
academy has written commitments from private entities
to make qualified contributions having a present value
(as of the date of issuance of the issue) of not less
than 10 percent of the proceeds of the issue.
``(B) Qualified contributions.--For purposes of
subparagraph (A), the term `qualified contribution'
means any contribution (of a type and quality
acceptable to the local educational agency) of--
``(i) equipment for use in the qualified
zone academy (including state-of-the-art
technology and vocational equipment),
``(ii) technical assistance in developing
curriculum or in training teachers in order to
promote appropriate market driven technology in
the classroom,
``(iii) services of employees as volunteer
mentors,
``(iv) internships, field trips, or other
educational opportunities outside the academy
for students, or
``(v) any other property or service
specified by the local educational agency.
``(3) Qualified zone academy.--The term `qualified zone
academy' means any public school (or academic program within a
public school) which is established by and operated under the
supervision of a local educational agency to provide education
or training below the postsecondary level if--
``(A) such public school or program (as the case
may be) is designed in cooperation with business to
enhance the academic curriculum, increase graduation
and employment rates, and better prepare students for
the rigors of college and the increasingly complex
workforce,
``(B) students in such public school or program (as
the case may be) will be subject to the same academic
standards and assessments as other students educated by
the local educational agency,
``(C) the comprehensive education plan of such
public school or program is approved by the local
educational agency, and
``(D)(i) such public school is located in an
empowerment zone or enterprise community (including any
such zone or community designated after the date of the
enactment of this section), or
``(ii) there is a reasonable expectation (as of the
date of issuance of the bonds) that at least 35 percent
of the students attending such school or participating
in such program (as the case may be) will be eligible
for free or reduced-cost lunches under the school lunch
program established under the National School Lunch
Act.
``(4) Qualified purpose.--The term `qualified purpose'
means, with respect to any qualified zone academy--
``(A) constructing, rehabilitating, or repairing
the public school facility in which the academy is
established,
``(B) acquiring the land on which such facility is
to be constructed with part of the proceeds of such
issue,
``(C) providing equipment for use at such academy,
``(D) developing course materials for education to
be provided at such academy, and
``(E) training teachers and other school personnel
in such academy.
``(b) Limitations on Amount of Bonds Designated.--
``(1) In general.--There is a national zone academy bond
limitation for each calendar year. Such limitation is--
``(A) $400,000,000 for 1998,
``(B) $400,000,000 for 1999,
``(C) $400,000,000 for 2000,
``(D) $1,400,000,000 for 2001,
``(E) $1,400,000,000 for 2002, and
``(F) except as provided in paragraph (3), zero
after 2002.
``(2) Allocation of limitation.--
``(A) Allocation among states.--
``(i) 1998, 1999, and 2000 limitations.--
The national zone academy bond limitations for
calendar years 1998, 1999, and 2000 shall be
allocated by the Secretary among the States on
the basis of their respective populations of
individuals below the poverty line (as defined
by the Office of Management and Budget).
``(ii) Limitation after 2000.--The national
zone academy bond limitation for any calendar
year after 2000 shall be allocated by the
Secretary 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.
``(B) Allocation to local educational agencies.--
The limitation amount allocated to a State under
subparagraph (A) shall be allocated by the State to
qualified zone academies within such State.
``(C) Designation subject to limitation amount.--
The maximum aggregate face amount of bonds issued
during any calendar year which may be designated under
subsection (a) with respect to any qualified zone
academy shall not exceed the limitation amount
allocated to such academy under subparagraph (B) for
such calendar year.
``(3) Carryover of unused limitation.--If for any calendar
year--
``(A) the limitation amount under this subsection
for any State, exceeds
``(B) the amount of bonds issued during such year
which are designated under subsection (a) (or the
corresponding provisions of prior law) with respect to
qualified zone academies within such State,
the limitation amount under this subsection for such State for
the following calendar year shall be increased by the amount of
such excess.''
(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 public school
modernization bonds.--
``(A) In general.--For purposes of subsection (a),
the term `interest' includes amounts includible in
gross income under section 1400F(f) and such amounts
shall be treated as paid on the credit allowance date
(as defined in section 1400F(d)(2)).
``(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 subchapters for chapter 1 of such Code is
amended by adding at the end the following new item:
``Subchapter X. Public school
modernization provisions.''
(3) 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.''
(e) Effective Dates.--
(1) In general.--Except as otherwise provided in this
subsection, the amendments made by this section shall apply to
obligations issued after December 31, 2000.
(2) Repeal of restriction on zone academy bond holders.--In
the case of bonds to which section 1397E of the Internal
Revenue Code of 1986 (as in effect before the date of the enactment of
this Act) applies, the limitation of such section to eligible taxpayers
(as defined in subsection (d)(6) of such section) shall not apply after
the date of the enactment of this Act.
SEC. 3. APPLICATION OF CERTAIN LABOR STANDARDS ON CONSTRUCTION PROJECTS
FINANCED UNDER PUBLIC SCHOOL MODERNIZATION 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 2 of the America's Better Classroom Act
of 2000.
``(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. 4. 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 provides trained workers for
projects for the construction or reconstruction of
public school facilities receiving funding assistance
under an applicable program.
``(C) The program ensures 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''.
<all>
Introduced in House
Introduced in House
Referred to the Committee on Ways and Means, and in addition to the Committee on Education and the Workforce, 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.
Referred to the Committee on Ways and Means, and in addition to the Committee on Education and the Workforce, 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.
Referred to the Committee on Ways and Means, and in addition to the Committee on Education and the Workforce, 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.
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