[Congressional Bills 103th Congress]
[From the U.S. Government Publishing Office]
[S. 2018 Introduced in Senate (IS)]

103d CONGRESS
  2d Session
                                S. 2018

 To reauthorize Public Law 81-815 (School Construction), and for other 
                               purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

               April 14 (legislative day, April 11), 1994

 Mr. Pressler introduced the following bill; which was read twice and 
         referred to the Committee on Labor and Human Resources

_______________________________________________________________________

                                 A BILL


 
 To reauthorize Public Law 81-815 (School Construction), and for other 
                               purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SCHOOL CONSTRUCTION.

    The Act entitled ``An Act relating to the construction of school 
facilities in areas affected by Federal activities, and for other 
purposes'' approved September 23, 1950 (20 U.S.C. 631 et seq.) is 
amended to read as follows:

``SECTION 1. STATEMENT OF PURPOSE AND AUTHORIZATION OF APPROPRIATIONS.

    ``(a) Statement of Purpose.--It is the purpose of this Act to 
provide financial assistance to federally impacted school districts 
which are urgently in need of--
            ``(1) school facilities in school districts--
                    ``(A) that have substantial increases in school 
                membership as a result of new or increased Federal 
                activities; and
                    ``(B) the membership of which includes children in 
                need of minimum school facilities; and
            ``(2) facility improvements or structural modifications due 
        to the need to meet life safety codes, average daily attendance 
        requirements, Federal laws, rules or regulations, or curriculum 
        improvements.
    ``(b) Authorization of Appropriations.--
            ``(1) In general.--There are authorized to be appropriated 
        $29,000,000 for fiscal year 1995, and such sums as may be 
        necessary for each of the fiscal years 1996 through 1999, to 
        carry out sections 5, 9, 10, and 13.
            ``(2) Administrative expenses.--There are authorized to be 
        appropriated such sums as may be necessary for each of the 
        fiscal years 1995 through 1999 for the administrative expenses 
        of the Department of Education.
            ``(3) Availability.--Funds appropriated pursuant to the 
        authority of paragraph (1) shall remain available until 
        expended.

``SEC. 2. PORTION OF APPROPRIATIONS AVAILABLE FOR PAYMENTS.

    ``(a) In General.--For each fiscal year the Secretary shall 
determine the portion of the funds appropriated pursuant to the 
authority of section 1 which shall be available for carrying out the 
provisions of sections 9 and 10. The remainder of such funds shall be 
available for paying to local educational agencies the Federal share of 
the cost of projects for the construction of school facilities for 
which applications have been approved under section 6.
    ``(b) Allocation Between Sections 5 and 13.--In any fiscal year the 
remainder of funds described in the second sentence of subsection (a) 
shall be used so that--
            ``(1) 50 percent of such funds are used for payments under 
        section 5 for such year; and
            ``(2) 50 percent of such funds are used for payments under 
        section 13 for such year.
    ``(c) Allocation Within Section 5.--In any fiscal year, the amount 
of funds available for payments under section 5 for such year shall be 
used so that--
            ``(1) 50 percent of such funds are available for activities 
        described in section 1(a)(1)(A); and
            ``(2) 50 percent of such funds are available for activities 
        described in section 1(a)(1)(B).

``SEC. 3. ESTABLISHMENT OF PRIORITIES.

    ``(a) In General.--In the event that funds appropriated pursuant to 
the authority of section 1 and remaining available for payment to local 
educational agencies under this Act are less than the Federal share of 
the cost of the projects with respect to which applications have been 
filed prior to such date (and for which funds under section 1 have not 
already been obligated), the Secretary shall make payments under 
section 5--
            ``(1) in the case of activities described in section 
        1(a)(1)(A), on the basis of the highest percentage of children 
        in need of minimum school facilities; and
            ``(2) in the case of activities described in section 
        1(a)(1)(B), on the basis of the highest percentage of federally 
        connected students eligible for payment.
    ``(b) Special Rule.--Only applications meeting the conditions for 
approval under this Act (other than section 6(b)(2)(C)) shall be 
considered applications for purposes of subsection (a).
    ``(c) Increases.--
            ``(1) In general.--The priorities described in this section 
        shall be applied so that applications for payments based upon 
        increases in the number of children residing on, or residing 
        with a parent employed on, property which is part of a low-rent 
        housing project assisted under the United States Housing Act of 
        1937 shall not be approved for any fiscal year until all other 
        applications for payments under paragraph (1) of section 5(a) 
        for payments relating to military connected children, and under 
        subsections (a) and (b) of section 13 for payments relating to 
        Indian children, have been approved for that fiscal year.
            ``(2) Military connected children.--For the purpose of 
        paragraph (1), the term `military connected children' means 
        children described in--
                    ``(A) section 3(a) of Public Law 81-874 who reside 
                on a military installation;
                    ``(B) section 3(b)(1) of such Public Law who reside 
                on a military installation;
                    ``(C) section 3(b)(2) of such Public Law who have a 
                parent employed on a military installation; and
                    ``(D) section 3(b)(3) of such Public Law.

``SEC. 4. FEDERAL SHARE FOR ANY PROJECT.

    ``(a) In General.--Subject to section 5 (which imposes limitations 
on the total of the payments which may be made to any local educational 
agency), the Federal share of the cost of a project under this Act 
shall be equal to such cost, but in no case to exceed the cost, in the 
school district of the applicant, of constructing minimum school 
facilities, and in no case to exceed the cost in such district of 
constructing minimum school facilities for the estimated number of 
children who will be in the membership of the schools of such agency at 
the close of the second year following the increase period and who will 
otherwise be without such facilities at such time.
    ``(b) Determination.--For the purposes of subsection (a), the 
number of such children who will otherwise be without such facilities 
at such time shall be determined by reference to those facilities which 
as of the date the application for such project is approved, are 
included in a project the application for which has been approved under 
this Act.

``SEC. 5. LIMITATION ON TOTAL PAYMENTS TO ANY LOCAL EDUCATIONAL AGENCY.

    ``(a) Limitation.--
            ``(1) In general.--Subject to the limitations in subsection 
        (c), the total of the payments to a local educational agency 
        under this Act may not exceed the sum of the following:
                    ``(A) The estimated increase, since the base year, 
                in the number of children determined with respect to 
                such agency who live on Federal property and have a 
                parent who works on Federal property multiplied by 100 
                percent of the average per pupil cost of constructing 
                minimum school facilities in the State in which the 
                school district of such agency is situated.
                    ``(B) The estimated increase, since the base year, 
                in the number of children determined with respect to 
                such agency who have a parent who lives on or works on 
                Federal property multiplied by 50 percent of such cost.
            ``(2) Computation rule.--In computing for any local 
        educational agency the number of children in an increase under 
        subparagraph (A) or (B) of paragraph (1), the estimated number 
        of children described in such subparagraphs who will be in the 
        membership of the schools of such agency at the close of the 
        increase period shall be compared with the estimated number of 
        such children in average daily membership of the schools of 
        such agency during the base year, except that the base year 
        average daily membership shall be adjusted to exclude the 
        number of children that formed the basis for previous payments 
        on applications approved 30 or more years prior to the close of 
        the increased period for the application for which the 
        determination is made.
    ``(b) Election.--If both subparagraphs (A) and (B) of subsection 
(a)(1) apply to a child, the local educational agency shall elect which 
of such subparagraphs shall apply to such child, except that, 
notwithstanding the election of a local educational agency to have such 
subparagraph (B) apply to a child instead of such subparagraph (A), the 
determination of the maximum amount for such agency under subsection 
(a)(1) shall be made without regard to such election.
    ``(c) Minimum Increase Requirement.--A local educational agency 
shall not be eligible to have any amount included in its maximum by 
reason of subparagraph (A) or (B) of subsection (a)(1) unless the 
increase in children referred to in such subparagraphs is--
            ``(1) at least 20; and
            ``(2)(A) equal to at least 6 percent of the number of 
        federally connected children who were in the average daily 
        membership of the schools of such agency during the base year; 
        or
            ``(B) at least 750,
        whichever is the lesser.
    ``(d) Exceptional Circumstances.--Notwithstanding the provisions of 
subsection (c) of this section, whenever and to the extent that, in the 
Secretary's judgment, exceptional circumstances exist which make such 
action necessary to avoid inequity and avoid defeating the purposes of 
the Act, the Secretary may waive or reduce the minimum number 
requirement or any percentage requirement described in subsection (c).
    ``(e) Count Limitation.--
            ``(1) In general.--In determining under this section the 
        total of the payments which may be made to a local educational 
        agency on the basis of any application, the total number of 
        children counted for purposes of subparagraph (A) or (B) of 
        subsection (a)(1) may not exceed--
                    ``(A) the number of children whose membership at 
                the close of the increase period for the application is 
                compared with average daily membership in the base 
                period for purposes of that paragraph (except that the 
                base year average daily membership shall not include 
                any children counted for purposes of a payment pursuant 
                to an application approved 30 or more years ago), minus
                    ``(B) the number of such children whose membership 
                at the close of the increase period was compared with 
                membership in the base year for purposes of such 
                subparagraph under the last previous application, if 
                any, of the agency on the basis of which any payment 
                has been or may be made to that agency.
            ``(2) Last previous application.--For the purpose of 
        paragraph (1)(B) the term `last previous application' means the 
        last application for assistance under this Act that was funded 
        within 4 fiscal years preceding the fiscal year for which the 
        determination is made.

``SEC. 6. APPLICATIONS.

    ``(a) Application Required.--No payment may be made to any local 
educational agency under this Act except upon application therefore 
which is submitted through the appropriate State educational agency and 
is filed with the Secretary in accordance with regulations prescribed 
by the Secretary.
    ``(b) Contents.--
            ``(1) In general.--Each application by a local educational 
        agency shall set forth the project for the construction of 
        school facilities for such agency with respect to which it is 
        filed, and shall contain or be supported by--
                    ``(A) a description of the project and the site 
                therefor, preliminary drawings of the school facilities 
                to be constructed thereon, and such other information 
                relating to the project as may reasonably be required 
                by the Secretary;
                    ``(B) assurance that such agency has or will have 
                title to the site, or the right to construct upon such 
                site school facilities as specified in the application 
                and to maintain such school facilities on such site for 
                a period of not less than 20 years after the completion 
                of the construction;
                    ``(C) assurance that such agency has legal 
                authority to undertake the construction of the project 
                and to finance any non-Federal share of the cost 
                thereof as proposed, and assurance that adequate funds 
                to defray any such non-Federal share will be available 
                when needed;
                    ``(D) assurance that such agency will cause work on 
                the project to be commenced within a reasonable time 
                and prosecuted to completion with reasonable diligence;
                    ``(E) assurance that, except for emergency relief 
                under section 7 of the Act of September 30, 1950 
                (Public Law 81-874), all laborers and mechanics 
                employed by contractors or subcontractors on all 
                construction and minor remodeling projects assisted 
                under this Act shall be paid wages at rates not less 
                than those prevailing on similar construction and minor 
                remodeling in the locality as determined by the 
                Secretary of Labor in accordance with the Davis-Bacon 
                Act, as amended (40 U.S.C. 276a-276a-5) and the 
                Secretary of Labor shall have, with respect to the 
                labor standards specified in this subparagraph, the 
                authority and functions set forth in Reorganization 
                Plan Numbered 14 or 1950 and section 2 of the Act of 
                June 13, 1934, as amended (40 U.S.C. 276c), (20 U.S.C. 
                1232(b));
                    ``(F) assurance that the school facilities of such 
                agency will be available to the children for whose 
                education contributions are provided in this Act on the 
                same terms, in accordance with the laws of the State in 
                which the school district of such agency is situated, 
                as such facilities are available to other children in 
                such school district; and
                    ``(G) assurance that such agency will from time to 
                time prior to the completion of the project submit such 
                reports relating to the project as the Secretary may 
                reasonably require.
            ``(2) Approval.--Except as provided in paragraph (3), the 
        Secretary shall approve any application if the Secretary 
        finds--
                    ``(A) that the requirements of paragraph (1) have 
                been met and that approval of the project would not 
                result in payments in excess of those permitted by 
                sections 4 and 5;
                    ``(B) after consultation with the State and local 
                educational agencies, that the project is not 
                inconsistent with overall State plans for the 
                construction of school facilities; and
                    ``(C) that there are sufficient Federal funds 
                available to pay the Federal share of the cost of such 
                project and of all other projects for which Federal 
                funds have not already been obligated and applications 
                for which, under section 3, have a higher priority.
    ``(c) Notice and Hearing.--No application under this Act shall be 
disapproved in whole or in part until the Secretary has afforded the 
local educational agency reasonable notice and opportunity for hearing.
    ``(d) Submission.--An application for a payment under this Act 
shall be submitted by June 30 of the fiscal year preceding the fiscal 
year for which payment is requested. An application submitted pursuant 
to the preceding sentence shall remain active for a period of 2 fiscal 
years following the fiscal year for which payment under this Act is 
requested. If a local educational agency wishes to make an application 
for payment under this Act after the expiration of the 2-year period 
described in the preceding sentence such agency shall resubmit an 
application in accordance with this section.

``SEC. 7. PAYMENTS.

    ``(a) In General.--Upon approving the application of any local 
educational agency under section 6, the Secretary shall pay to such 
agency an amount equal to 10 percent of the Federal share of the cost 
of the project. After final drawings and specifications have been 
approved by the Secretary and the construction contract has been 
entered into, the Secretary, in accordance with regulations prescribed 
by the Secretary and at such times and in such installments as may be 
reasonable, shall pay to such agency the remainder of the Federal share 
of the cost of the project.
    ``(b) Repayment.--Any funds paid to a local educational agency 
under this Act and not expended for the purposes for which paid shall 
be repaid to the Treasury of the United States.

``SEC. 8. ADDITIONAL PAYMENTS.

    ``(a) In General.--Not to exceed 10 percent of the funds 
appropriated pursuant to the authority of section 1(b)(1) for any 
fiscal year may be used by the Secretary, under regulations prescribed 
by the Secretary, to make grants to local educational agencies where--
            ``(1) the application of such agencies would be approved 
        under this Act but for the agencies' inability, unless aided by 
        such grants, to finance the non-Federal share of the cost of 
        the projects set forth in their applications; or
            ``(2) although the applications of such agencies have been 
        approved, the projects covered by such applications could not, 
        without such grants, be completed, because of flood, fire, or 
        similar emergency affecting either the work on the projects or 
        the agencies' ability to finance the non-Federal share of the 
        cost of the projects.
    ``(b) Special Rule.--The grants described in subsection (a) shall 
be in addition to the payments otherwise provided under this Act, shall 
be made to those local educational agencies whose need for additional 
aid is the most urgent and acute, and insofar as practicable shall be 
made in the same manner and upon the same terms and conditions as such 
other payments.
    ``(c) Additional Appropriations Required.--The provisions of this 
section shall take effect only when funds are specifically appropriated 
to carry out this section.

``SEC. 9. WHERE EFFECT OF FEDERAL ACTIVITIES WILL BE TEMPORARY.

    ``Notwithstanding the preceding provisions of this Act, whenever 
the Secretary determines that the membership of some or all of the 
children, who may be included in computing under section 5 the maximum 
on the total of the payments for any local educational agency, will be 
of temporary duration only, such membership shall not be included in 
computing such maximum. Instead, the Secretary may make available to 
such agency such temporary school facilities as may be necessary to 
take care of such membership; or the Secretary may, where the local 
educational agency gives assurance that at least minimum school 
facilities will be provided for such children, pay (on such terms and 
conditions as the Secretary deems appropriate to carry out the purposes 
of this Act) to such agency for use in constructing school facilities 
an amount equal to the amount which the Secretary estimates would be 
necessary to make available such temporary facilities. In no case may 
the amount so paid exceed the cost, in the school district of such 
agency of constructing minimum school facilities for such children. The 
Secretary may transfer to such agency or its successor all the right, 
title, and interest of the United States in and to any temporary 
facilities made available to such agency under this section; and such 
transfer shall be without charge, but may be made on such other terms 
and conditions, and at such time as the Secretary deems appropriate to 
carry out the purposes of this Act.

``SEC. 10. CHILDREN FOR WHOM LOCAL AGENCIES ARE UNABLE TO PROVIDE 
              EDUCATION.

    ``(a) In General.--In the case of children who it is estimated by 
the Secretary in any fiscal year will reside on Federal property at the 
end of the next fiscal year--
            ``(1) if no tax revenues of the State or any political 
        subdivision thereof may be expended for the free public 
        education of such children; or
            ``(2) if it is the judgment of the Secretary, after the 
        Secretary has consulted with the appropriate State educational 
        agency, that no local educational agency is able to provide 
        suitable free public education for such children,
the Secretary shall make arrangements for constructing, leasing, 
renovating, remodeling, or rehabilitating or otherwise providing the 
minimum school facilities necessary for the education of such children. 
In any case in which the Secretary makes arrangements under this 
section for constructing, leasing, renovating, remodeling, or 
rehabilitating or otherwise providing minimum school facilities 
situated on Federal property in Puerto Rico, Wake Island, Guam, 
American Samoa, the Northern Mariana Islands, or the Virgin Islands, 
the Secretary may also include minimum school facilities necessary for 
the education of children residing with a parent employed by the United 
States though not residing on Federal property, but only if the 
Secretary determines, after consultation with the appropriate State 
educational agency, (A) that the construction or provision of such 
facilities is appropriate to carry out the purposes of this subsection, 
(B) that no local educational agency is able to provide suitable free 
public education for such children, and (C) that English is not the 
primary language of instruction in schools in the locality. Such 
arrangements may also be made to provide, on a temporary basis, minimum 
school facilities for children of members of the Armed Forces on active 
duty, if the schools in which free public education is usually provided 
for such children are made unavailable to such children as a result of 
official action by State or local governmental authority and it is the 
judgment of the Secretary, after the Secretary has consulted with the 
appropriate State educational agency, that no local educational agency 
is able to provide suitable free public education for such children.
    ``(b) Special Rules.--
            ``(1) Comparability.--To the maximum extent practicable 
        school facilities provided under this section shall be 
        comparable to minimum school facilities provided for children 
        in comparable communities in the State.
            ``(2) Inapplicability.--This section shall not apply to--
                    ``(A) children who reside on Federal property under 
                the control of the Atomic Energy Commission; and
                    ``(B) Indian children attending schools supported 
                by the Bureau of Indian Affairs.
            ``(3) Special rule.--Whenever it is necessary for the 
        Secretary to provide school facilities for children residing on 
        Federal property under this section, the membership of such 
        children may not be included in computing under section 5 the 
        maximum on the total of the payments for any local educational 
        agency.
    ``(c) Transfers.--When the Secretary determines it is in the 
interest of the Federal Government to do so, the Secretary may 
transfer, upon the written request of the local educational agency, to 
the appropriate local educational agency all the right, title, and 
interest of the United States in and to any facilities provided under 
this Act (or section 204 or 310 of Public Law 81-815 as such law was in 
effect January 1, 1958). Prior to any transfer, the facility shall meet 
all State and Federal building health and safety codes, regulations and 
laws. Any such transfer shall be without charge, but may be made on 
such other terms and conditions and at such time as the Secretary deems 
appropriate to carry out the purposes of this Act.
    ``(d) Special Rule Regarding Tax Revenues.--If no tax revenues of a 
State or of any political subdivision of the State may be expended for 
the free public education of children who reside on any Federal 
property within the State, or if no tax revenues of a State are 
allocated for the free public education of such children, then the 
property on which such children reside shall not be considered Federal 
property for the purposes of section 5 of this Act.

``SEC. 11. WITHHOLDING OF PAYMENTS.

    ``(a) In General.--Whenever the Secretary, after providing 
reasonable notice and opportunity for hearing to a local educational 
agency, finds that--
            ``(1) there is a substantial failure to comply with the 
        drawings and specifications for the project;
            ``(2) any funds paid to a local educational agency under 
        this Act have been diverted from the purposes for which paid; 
        or
            ``(3) any assurance given in an application is not being or 
        cannot be carried out,
the Secretary may notify such agency that no further payment will be 
made under this Act with respect to such agency until there is no 
longer any failure to comply or the diversion or default has been 
corrected or, if compliance or correction is impossible, until such 
agency repays or arranges for the repayment of Federal moneys which 
have been diverted or improperly expended.
    ``(b) Judicial Review.--The final refusal of the Secretary to 
approve part or all of any application under this Act, and the 
Secretary's final action under subsection (a) of this section, shall be 
subject to judicial review on the record, in the United States court of 
appeals for the circuit in which the local educational agency is 
located, in accordance with the provisions of the Administrative 
Procedure Act.

``SEC. 12. USE OF OTHER FEDERAL AGENCIES TRANSFER AND AVAILABILITY OF 
              APPROPRIATIONS.

    ``(a) Administration.--In carrying out the provisions of this Act, 
the Secretary is authorized to utilize the services and facilities of 
any agency of the Federal Government and of any other public or 
nonprofit agency or institution, in accordance with appropriate 
agreements, and to pay for such services either in advance or by way of 
reimbursement, as may be agreed upon.
    ``(b) Requests for Information.--All Federal departments or 
agencies administering Federal property on which children reside, and 
all such departments or agencies principally responsible for Federal 
activities which may give rise to a need for the construction of school 
facilities, shall to the maximum extent practicable, comply with 
requests of the Secretary for information the Secretary may require in 
carrying out the purposes of this Act.
    ``(c) Special Rule.--No appropriation to any department or agency 
of the United States, other than an appropriation to carry out this 
Act, shall be available for the same purposes as this Act.

``SEC. 13. SCHOOL CONSTRUCTION ASSISTANCE IN OTHER FEDERALLY AFFECTED 
              AREAS.

    ``(a) Assistance Authorized for Certain Indian Children.--
            ``(1) In general.--If the Secretary determines with respect 
        to any local educational agency that--
                    ``(A) such agency is providing or, upon completion 
                of the school facilities for which provision is made 
                under this subsection, will provide free public 
                education for children who reside on Indian lands, and 
                whose membership in the schools of such agency has not 
                formed and will not form the basis for payments under 
                other provisions of this Act, and that the total number 
                of such children represents a substantial percentage of 
                the total number of children for whom such agency 
                provides free public education, or that such Indian 
                lands constitute a substantial part of the school 
                district of such local educational agency, or that the 
                total number of such children who reside on Indian 
                lands located outside the school district of such 
                agency equals or exceeds 100;
                    ``(B) the immunity of such Indian lands to taxation 
                by such agency has created a substantial and continuing 
                impairment of such agency's ability to finance needed 
                school facilities;
                    ``(C) such agency is making a reasonable tax effort 
                and is exercising due diligence in availing itself of 
                State and other financial assistance available for the 
                purpose of this section; and
                    ``(D) such agency does not have sufficient funds 
                available to such agency from other Federal, State, and 
                local sources to provide the minimum school facilities 
                required for free public education of a substantial 
                percentage of the children in the membership of its 
                schools,
        then the Secretary may provide the additional assistance 
        necessary to enable such agency to provide such facilities upon 
        such terms and in such amounts (subject to the provisions of 
        this section) as the Secretary may consider to be in the public 
        interest, except that such additional assistance may not exceed 
        the portion of the cost of such facilities or improvements or 
        structural modifications which the Secretary estimates has not 
        been, and is not to be, recovered by the local educational 
        agency from other sources, including payments by the United 
        States under any provision of this Act or any other law.
            ``(2) Waiver.--Notwithstanding the provisions of this 
        subsection, the Secretary may waive the percentage requirement 
        described in paragraph (1)(A) whenever, in the Secretary's 
        judgment, exceptional circumstances exist which make such 
        actions necessary to avoid inequity and avoid defeating the 
        purposes of this section. Assistance may be furnished under 
        this subsection without regard to paragraph (1)(B) (but subject 
        to the other provisions of this subsection and subsection (e)) 
        to any local educational agency which provides free public 
        education for children who reside on Indian lands located 
        outside its school district.
            ``(3) Definition.--For purposes of this subsection `Indian 
        lands' means Indian reservations or other real property 
        referred to in the second sentence of section 14(4).
    ``(b) Assistance Authorized for Other Indian Children.--
            ``(1) In general.--If the Secretary determines with respect 
        to any local educational agency that--
                    ``(A) such agency is providing or, upon completion 
                of the school facilities for which provision is made 
                under this subsection will provide free public 
                education for children who reside on Indian lands, and 
                whose membership in the schools of such agency has not 
                formed and will not form the basis for payments under 
                other provisions of this Act, and that the total number 
                of such children represents a substantial percentage of 
                the total number of children for whom such agency 
                provides free public education, or that such local 
                educational agency, or that the total number of such 
                children who reside on Indian lands located outside the 
                school district of such agency equals or exceeds 100; 
                and
                    ``(B) the immunity of such Indian lands to taxation 
                by such agency has created a substantial and continuing 
                impairment of such agency's ability to finance needed 
                school facilities,
        then the Secretary may, upon such terms and in such amounts 
        (subject to the provisions of this section) as the Secretary 
        may consider to be in the public interest, provide the 
        additional assistance necessary to enable such agency to 
        provide the minimum school facilities required for free public 
        education of children in the membership of the schools of such 
        agency who reside on Indian lands, except that such additional 
        assistance may not exceed the portion of the cost of 
        constructing such facilities which the Secretary estimates has 
        not been, and is not to be, recovered by the local educational 
        agency from other sources, including payments by the United 
        States under any provisions of this Act or any other law.
            ``(2) Waiver.--Notwithstanding the provisions of this 
        subsection, the Secretary may waive the percentage requirement 
        in paragraph (1)(A) whenever, in the Secretary's judgment, 
        exceptional circumstances exist which make such action 
        necessary to avoid inequity and avoid defeating the purpose of 
        this section. Assistance may be furnished under this subsection 
        without regard to paragraph (1)(B) (but subject to the other 
        provisions of this subsection and subsection (e)) to any local 
        educational agency which provides free public education for 
        children who reside on Indian lands located outside its school 
        district.
            ``(3) Definition.--For purposes of this subsection `Indian 
        lands' means Indian reservations or other real property 
        referred to in the second sentence of section 14(4).
    ``(c) Assistance Authorized for Inadequately Housed Children.--
            ``(1) In general.--If the Secretary determines with respect 
        to any local educational agency that--
                    ``(A) such agency is providing or, upon completion 
                of the school facilities for which provision is made 
                under this subsection, will provide, free public 
                education for children who are inadequately housed by 
                minimum school facilities and whose membership in the 
                schools of such agency has not formed and will not form 
                the basis for payments under other provisions of this 
                section, and the total number of such children 
                represents a substantial percentage of the total number 
                of children for whom such agency provides free public 
                education, and Federal property constitutes a 
                substantial part of the school district of such agency;
                    ``(B) the immunity of such Federal property from 
                taxation by such agency has created a substantial and 
                continuing impairment of such agency's ability to 
                finance needed school facilities;
                    ``(C) such agency is making a reasonable tax effort 
                and is exercising due diligence in availing itself of 
                State and other financial assistance available for the 
                purpose of this section; and
                    ``(D) such agency does not have sufficient funds 
                available to such agency from other Federal, State, and 
                local sources to provide the minimum school facilities 
                required for free public education of a substantial 
                percentage of the children in the membership of its 
                schools,
        then the Secretary may provide the assistance necessary to 
        enable such agency to provide minimum school facilities for 
        children in the membership of the schools of such agency whom 
        the Secretary finds to be inadequately housed, upon such terms 
        and conditions, and in such amounts (subject to the applicable 
        provisions of this section) as the Secretary may consider to be 
        in the public interest. Such assistance may not exceed the 
        portion of the cost of such facilities or improvements or 
        structural modifications which the Secretary estimates has not 
        been, and is not to be, recovered by the local educational 
        agency from other sources, including payments by the United 
        States under any other provisions of this Act or any other law.
            ``(2) Waiver.--Notwithstanding the provisions of this 
        subsection, the Secretary may waive the percentage requirement 
        in paragraph (1)(A) whenever, in the Secretary's judgment, 
        exceptional circumstances exist which make such action 
        necessary to avoid inequity and avoid defeating the purposes of 
        this section.
    ``(d) Application.--No payment may be made to any local educational 
agency under subsection (a) or (b) except upon application therefor 
which is submitted through the appropriate State educational agency and 
is filed with the Secretary in accordance with regulations prescribed 
by the Secretary, and which meets the requirements of section 6(b)(1). 
In determining the order in which such applications shall be approved, 
the Secretary shall consider the relative educational and financial 
needs of the local educational agencies which have submitted approved 
applications and the nature and extent of the Federal responsibility. 
No payment may be made under subsections (a) or (b) unless the 
Secretary finds, after consultation with the State and local 
educational agencies, that the project or projects with respect to 
which the payment is made are not inconsistent with overall State plans 
for the construction of school facilities. All determinations made by 
the Secretary under this section shall be made only after consultation 
with the appropriate State educational agency and the local educational 
agency.
    ``(e) Payments.--Amounts paid by the Secretary to local educational 
agencies under subsections (a) or (b) may be paid in advance of, or by 
way of reimbursement for, work performed or purchases made pursuant to 
the agreement with the Secretary under this section, and may be paid in 
such installments as the Secretary may determine. Any funds paid to a 
local educational agency under this section and not expended or 
otherwise used for the purposes for which paid shall be repaid to the 
Treasury of the United States.
    ``(f) Inapplicability of Certain Provisions.--None of the 
provisions of sections 1 through 10, other than section 6(2)(A) shall 
apply with respect to determinations made under this section.

``SEC. 14. DEFINITIONS AND DETERMINATIONS.

    ``(a) Definitions.--As used in this section:
            ``(1) Base year.--The term `base year' means the third or 
        fourth regular school year preceding the fiscal year in which 
        an application was filed under section 6, as may be designated 
        in the application.
            ``(2) Child.--The term `child' means any child who is 
        within the age limits for which the applicable State provides 
        free public education.
            ``(3) Construct; constructing; and construction.--The terms 
        `construct', `constructing', and `construction' include the 
        preparation of drawings and specifications for school 
        facilities; erecting, building, acquiring, altering, 
        remodeling, improving, modifying, or extending school 
        facilities; and the inspection and supervision of the 
        construction of school facilities.
            ``(4) Federal property.--(A) The term `Federal property' 
        means real property which is owned by the United States or is 
        leased by the United States, and which is not subject to 
        taxation by any State or any political subdivision of a State 
        or by the District of Columbia. Except for purposes of sections 
        5, 10, and 13(c), such term includes--
                    ``(i) real property held in trust by the United 
                States for individual Indians or Indian tribes, and 
                real property held by individual Indians or Indian 
                tribes which is subject to restrictions on alienation 
                imposed by the United States;
                    ``(ii) any low-rent housing (whether or not owned 
                by the United States) which is part of a low-rent 
                housing project assisted under the United States 
                Housing Act of 1937; and
                    ``(iii) any interest in Federal property (as 
                defined in the provisions of clauses (i) and (ii)) 
                under an easement, lease, license, permit, or other 
                arrangement, as well as any improvements of any nature 
                (other than pipelines or utility lines) on such 
                property even though such interests or improvements are 
                subject to taxation by a State or political subdivision 
                of a State or by the District of Columbia.
            ``(B) Notwithstanding the provisions of subparagraph (A), 
        such term does not include--
                    ``(i) any real property used for a labor supply 
                center, labor home, or labor camp for migratory farm 
                workers; and
                    ``(ii) any real property under the jurisdiction of 
                the United States Postal Service and used primarily for 
                the provision of postal services.
            ``(5) Free public education.--The term `free public 
        education' means education which is provided at public expense, 
        under public supervision and direction, and without tuition 
        charge, and which is provided as elementary or secondary school 
        education in the applicable State.
            ``(6) Increased period.--The term `increased period' means 
        the period of 4 consecutive regular school years immediately 
        following such base year.
            ``(7) Local educational agency.--The term `local 
        educational agency' means a board of education of any public 
        school or other legally constituted local public school 
        authority having administrative control and direction of free 
        public education in a county, township, independent, or other 
        school district located within a State. Such term includes any 
        State agency which directly operates and maintains facilities 
        for providing free public education or which has responsibility 
        for the provision of such facilities.
            ``(8) Parent.--The term `parent' includes a legal guardian 
        or other person standing in loco parentis.
            ``(9) School facilities.--The term `school facilities' 
        includes classroom and related facilities; and initial 
        equipment, machinery, and utilities necessary or appropriate 
        for school purposes. Such term does not include athletic 
        stadiums, or structures or facilities intended primarily for 
        athletic exhibitions, contests, or games or other events for 
        which admission is to be charged to the general public. Except 
        as used in sections 9 and 10 such term does not include 
        interests in land and offsite improvements.
            ``(10) Secretary.--The term `Secretary', unless otherwise 
        specified, means the Secretary of Education.
            ``(11) State.--The term `State' means a State, the 
        Commonwealth of Puerto Rico, Guam, the District of Columbia, 
        American Samoa, the Commonwealth of the Northern Mariana 
        Islands, the Virgin Islands, or Wake Island.
            ``(12) State educational agency.--The term `State 
        educational agency' means the officer or agency primarily 
        responsible for the State supervision of public elementary and 
        secondary schools.
    ``(b) Determinations.--
            ``(1) Membership of schools.--(A) The membership of schools 
        shall be determined in accordance with State law or, in the 
        absence of State law governing such a determination, in 
        accordance with regulations of the Secretary, except that, 
        notwithstanding any other provisions of this section, where the 
        local educational agency of the school district in which any 
        child resides makes or contracts to make a tuition payment for 
        the free public education of such child in a school situated in 
        another school district, for purposes of this section the 
        membership of such child, shall be held and considered--
                    ``(i) if the 2 local educational agencies concerned 
                so agree, and if such agreement is approved by the 
                Secretary, as membership of a school of the local 
                educational agency receiving such tuition payment; and
                    ``(ii) in the absence of any such approved 
                agreement, as membership of a school of the local 
                educational agency so making or contracting to make 
                such tuition payment.
            ``(B) In any determination of membership of schools, 
        children who are not provided free public education (as defined 
        in subsection (a)(5)) shall not be counted.
            ``(2) Average per pupil cost.--The average per pupil cost 
        of constructing minimum school facilities in the State in which 
        the school district of a local educational agency is situated 
        shall be determined by the Secretary on the basis of the 
        average State per pupil construction cost in the year previous 
        to the year of funding (including costs of minimum site 
        improvements, minimum initial equipment, and applicable 
        architectural, engineering, and legal fees). The cost of 
        constructing minimum school facilities in the school district 
        of a local educational agency shall be determined by the 
        Secretary, after consultation with the State and local 
        educational agencies, on the basis of such information as may 
        be contained in the application of such local educational 
        agency and such other information as the Secretary may obtain.
            ``(3) Timing and information requirement.--Estimates of 
        membership, and all other determinations with respect to 
        eligibility and maximum amount of payment, shall be made as of 
        the time of the approval of the applications for which made, 
        and shall be made on the basis of the best information 
        available at the time of such approval.
            ``(4) Minimum school facilities.--Whether or not school 
        facilities are minimum school facilities shall be determined by 
        the Secretary, after consultation with the State and local 
        educational agencies, in accordance with regulations prescribed 
        by the Secretary. Such regulations shall--
                    ``(A) require the local educational agency 
                concerned to give due consideration to excellence of 
                architecture and design;
                    ``(B) provide that no facility shall be 
                disqualified as a minimum school facility because of 
                the inclusion of works of art in the plans therefor if 
                the cost of such works of art does not exceed 1 percent 
                of the cost of the project; and
                    ``(C) require compliance with such standards as the 
                Secretary may prescribe or approve in order to ensure 
                that facilities constructed with the use of Federal 
                funds under this Act shall be, to the extent 
                appropriate in view of the uses to be made of the 
                facilities, accessible to and usable by individuals 
                with disabilities.''.

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