TREATMENT OF QUALIFIED PUBLIC EDUCATIONAL FACILITY BONDS AS EXEMPT FACILITY BONDS.

SEC. 422. TREATMENT OF QUALIFIED PUBLIC EDUCATIONAL FACILITY BONDS AS EXEMPT FACILITY BONDS. (a) Treatment as Exempt Facility Bond.—Subsection (a) of section 142 (relating to exempt facility bond) is amended by striking “or” at the end of paragraph (11), by striking the period at the end of paragraph (12) and inserting “, or”, and by adding at the end the following new paragraph: “(13) qualified public educational facilities.”. (b) Qualified Public Educational Facilities.—Section 142 (relating to exempt facility bond) is amended by adding at the end the following new subsection: “(k) Qualified Public Educational Facilities.— “(1) In general.—For purposes of subsection (a)(13), the term ‘qualified public educational facility’ means any school facility which is— “(A) part of a public elementary school or a public secondary school, and “(B) owned by a private, for-profit corporation pursuant to a public-private partnership agreement with a State or local educational agency described in paragraph (2). “(2) Public-private partnership agreement described.—A public-private partnership agreement is described in this paragraph if it is an agreement— “(A) under which the corporation agrees— “(i) to do 1 or more of the following: construct, rehabilitate, refurbish, or equip a school facility, and “(ii) at the end of the term of the agreement, to transfer the school facility to such agency for no additional consideration, and “(B) the term of which does not exceed the term of the issue to be used to provide the school facility. “(3) School facility.—For purposes of this subsection, the term ‘school facility’ means— “(A) any school building, “(B) any functionally related and subordinate facility and land with respect to such building, including any stadium or other facility primarily used for school events, and “(C) any property, to which section 168 applies (or would apply but for section 179), for use in a facility described in subparagraph (A) or (B). “(4) Public schools.—For purposes of this subsection, the terms ‘elementary school’ and ‘secondary school’ have the meanings given such terms by section 14101 of the Elementary and Secondary Education Act of 1965 (20 U.S.C. 8801), as in effect on the date of the enactment of this subsection. “(5) Annual aggregate face amount of tax-exempt financing.— “(A) In general.—An issue shall not be treated as an issue described in subsection (a)(13) if the aggregate face amount of bonds issued by the State pursuant thereto 115 STAT. 66(when added to the aggregate face amount of bonds previously so issued during the calendar year) exceeds an amount equal to the greater of— “(i) $10 multiplied by the State population, or “(ii) $5,000,000. “(B) Allocation rules.— “(i) In general.—Except as otherwise provided in this subparagraph, the State may allocate the amount described in subparagraph (A) for any calendar year in such manner as the State determines appropriate. “(ii) Rules for carryforward of unused limitation.—A State may elect to carry forward an unused limitation for any calendar year for 3 calendar years following the calendar year in which the unused limitation arose under rules similar to the rules of section 146(f), except that the only purpose for which the carryforward may be elected is the issuance of exempt facility bonds described in subsection (a)(13).”. (c) Exemption From General State Volume Caps.—Paragraph (3) of section 146(g) (relating to exception for certain bonds) is amended— (1) by striking “or (12)” and inserting “(12), or (13)”, and (2) by striking “and environmental enhancements of hydroelectric generating facilities” and inserting “environmental enhancements of hydroelectric generating facilities, and qualified public educational facilities”. (d) Exemption From Limitation on Use for Land Acquisition.—Section 147(h) (relating to certain rules not to apply to mortgage revenue bonds, qualified student loan bonds, and qualified 501(c)(3) bonds) is amended by adding at the end the following new paragraph: “(3) Exempt facility bonds for qualified public-private schools.—Subsection (c) shall not apply to any exempt facility bond issued as part of an issue described in section 142(a)(13) (relating to qualified public educational facilities).”. (e) Conforming Amendment.—The heading for section 147(h) is amended by striking “Mortgage Revenue Bonds, Qualified Student Loan Bonds, and Qualified 501(c)(3) Bonds” and inserting “Certain Bonds”. (f) Effective Date.—The amendments made by this section shall apply to bonds issued after December 31, 2001.