[Congressional Bills 106th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3616 Engrossed in House (EH)]


  2d Session

                               H. R. 3616

_______________________________________________________________________

                                 AN ACT

    To reauthorize the impact aid program under the Elementary and 
        Secondary Education Act of 1965, and for other purposes.
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
106th CONGRESS
  2d Session
                                H. R. 3616

_______________________________________________________________________

                                 AN ACT


 
    To reauthorize the impact aid program under the Elementary and 
        Secondary Education Act of 1965, 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. SHORT TITLE.

    This Act may be cited as the ``Impact Aid Reauthorization Act of 
2000''.

SEC. 2. PURPOSE.

    Section 8001 of the Elementary and Secondary Education Act of 1965 
(20 U.S.C. 7701) is amended--
            (1) in the matter preceding paragraph (1)--
                    (A) by inserting after ``educational services to 
                federally connected children'' the following: ``in a 
                manner that promotes control by local educational 
                agencies with little or no Federal or State 
                involvement''; and
                    (B) by inserting after ``certain activities of the 
                Federal Government'' the following: ``, such as 
                activities to fulfill the responsibilities of the 
                Federal Government with respect to Indian tribes and 
                activities under section 514 of the Soldiers' and 
                Sailors' Civil Relief Act of 1940 (50 U.S.C. App. 
                574),'';
            (2) in paragraph (4), by adding ``or'' at the end;
            (3) by striking paragraph (5);
            (4) by redesignating paragraph (6) as paragraph (5); and
            (5) in paragraph (5) (as redesignated), by inserting before 
        the period at the end the following: ``and because of the 
        difficulty of raising local revenue through bond referendums 
        for capital projects due to the inability to tax Federal 
        property''.

SEC. 3. PAYMENTS RELATING TO FEDERAL ACQUISITION OF REAL PROPERTY.

    (a) Fiscal Year Requirement.--Section 8002(a) of the Elementary and 
Secondary Education Act of 1965 (20 U.S.C. 7702(a)) is amended in the 
matter preceding paragraph (1) by striking ``1999'' and inserting 
``2005''.
    (b) Amount.--
            (1) Insufficient funds.--Section 8002(b)(1)(B) of the 
        Elementary and Secondary Education Act of 1965 (20 U.S.C. 
        7702(b)(1)(B)) is amended by striking ``shall ratably reduce 
        the payment to each eligible local educational agency'' and 
        inserting ``shall calculate the payment for each eligible local 
        educational agency in accordance with subsection (h)''.
            (2) Maximum amount.--Section 8002(b)(1)(C) of the 
        Elementary and Secondary Education Act of 1965 (20 U.S.C. 
        7702(b)(1)(C)) is amended by adding at the end before the 
        period the following: ``, or the maximum amount that such 
        agency is eligible to receive for such fiscal year under this 
        section, whichever is greater''.
    (c) Payments With Respect to Fiscal Years in Which Insufficient 
Funds Are Appropriated.--Section 8002(h) of the Elementary and 
Secondary Education Act of 1965 (20 U.S.C. 7702(h)) is amended to read 
as follows:
    ``(h) Payments With Respect to Fiscal Years in Which Insufficient 
Funds Are Appropriated.--For any fiscal year for which the amount 
appropriated under section 8014(a) is insufficient to pay to each local 
educational agency the full amount determined under subsection (b), the 
Secretary shall make payments to each local educational agency under 
this section as follows:
            ``(1) Foundation payments for pre-1995 recipients.--
                    ``(A) In general.--The Secretary shall first make a 
                foundation payment to each local educational agency 
                that is eligible to receive a payment under this 
                section for the fiscal year involved and was eligible 
                to receive a payment under section 2 of the Act of 
                September 30, 1950 (Public Law 874, 81st Congress) (as 
                such section was in effect on the day preceding the 
                date of the enactment of the Improving America's 
                Schools Act of 1994) for any of the fiscal years 1989 
                through 1994.
                    ``(B) Amount.--The amount of a payment under 
                subparagraph (A) for a local educational agency shall 
                be equal to 37 percent of the payment amount the local 
                educational agency was eligible to receive under 
                section 2 of the Act of September 30, 1950, for fiscal 
                year 1994 (or if the local educational agency was not 
                eligible to receive a payment under such section 2 for 
                fiscal year 1994, the payment that local educational 
                agency was eligible to receive under such section 2 for 
                the most recent fiscal year preceding 1994).
                    ``(C) Insufficient appropriations.--If the amount 
                appropriated under section 8014(a) is insufficient to 
                pay the full amount determined under this paragraph for 
                all eligible local educational agencies for the fiscal 
                year, then the Secretary shall ratably reduce the 
                payment to each local educational agency under this 
                paragraph.
            ``(2) Payments for 1995 recipients.--
                    ``(A) In general.--From any amounts remaining after 
                making payments under paragraph (1) for the fiscal year 
                involved, the Secretary shall make a payment to each 
                eligible local educational agency that received a 
                payment under this section for fiscal year 1995.
                    ``(B) Amount.--The amount of a payment under 
                subparagraph (A) for a local educational agency shall 
                be determined as follows:
                            ``(i) Calculate the difference between the 
                        amount appropriated to carry out this section 
                        for fiscal year 1995 and the total amount of 
                        foundation payments made under paragraph (1) 
                        for the fiscal year.
                            ``(ii) Determine the percentage share for 
                        each local educational agency that received a 
                        payment under this section for fiscal year 1995 
                        by dividing the assessed value of the Federal 
                        property of the local educational agency for 
                        fiscal year 1995 determined in accordance with 
                        subsection (b)(3), by the total national 
                        assessed value of the Federal property of all 
                        such local educational agencies for fiscal year 
                        1995, as so determined.
                            ``(iii) Multiply the percentage share 
                        described in clause (ii) for the local 
                        educational agency by the amount determined 
                        under clause (i).
            ``(3) Subsection (i) recipients.--From any funds remaining 
        after making payments under paragraphs (1) and (2) for the 
        fiscal year involved, the Secretary shall make payments in 
        accordance with subsection (i).
            ``(4) Remaining funds.--From any funds remaining after 
        making payments under paragraphs (1), (2), and (3) for the 
        fiscal year involved--
                    ``(A) the Secretary shall make a payment to each 
                local educational agency that received a foundation 
                payment under paragraph (1) for the fiscal year 
                involved in an amount that bears the same relation to 
                25 percent of the remainder as the amount the local 
                educational agency received under paragraph (1) for the 
                fiscal year involved bears to the amount all local 
                educational agencies received under paragraph (1) for 
                the fiscal year involved; and
                    ``(B) the Secretary shall make a payment to each 
                local educational agency that is eligible to receive a 
                payment under this section for the fiscal year involved 
                in an amount that bears the same relation to 75 percent 
                of the remainder as a percentage share determined for 
                the local educational agency (in the same manner as 
                percentage shares are determined for local educational 
                agencies under paragraph (2)(B)(ii)) bears to the 
                percentage share determined (in the same manner) for 
                all local educational agencies eligible to receive a 
                payment under this section for the fiscal year 
                involved, except that for the purpose of calculating a 
                local educational agency's assessed value of the 
                Federal property, data from the most current fiscal 
                year shall be used.''.
    (d) Special Payments.--
            (1) In general.--Section 8002(i)(1) of the Elementary and 
        Secondary Education Act of 1965 (20 U.S.C. 7702(i)(1)) is 
        amended to read as follows:
            ``(1) In general.--For any fiscal year beginning with 
        fiscal year 2000 for which the amount appropriated to carry out 
        this section exceeds the amount so appropriated for fiscal year 
        1996 and for which subsection (b)(1)(B) applies, the Secretary 
        shall use the remainder described in subsection (h)(3) for the 
        fiscal year involved (not to exceed the amount equal to the 
        difference between (A) the amount appropriated to carry out 
        this section for fiscal year 1997 and (B) the amount 
        appropriated to carry out this section for fiscal year 1996) to 
        increase the payment that would otherwise be made under this 
        section to not more than 50 percent of the maximum amount 
        determined under subsection (b) for any local educational 
        agency described in paragraph (2).''.
            (2) Conforming amendment.--The heading of section 8002(i) 
        of the Elementary and Secondary Education Act of 1965 (20 
        U.S.C. 7702(i)) is amended by striking ``Priority'' and 
        inserting Special''.
    (e) Additional Assistance for Certain Local Educational Agencies 
Impacted by Federal Property Acquisition.--Section 8002(j)(2) of the 
Elementary and Secondary Education Act of 1965 (20 U.S.C. 7702(j)(2)) 
is amended--
            (1) by striking ``(A) A local educational agency'' and 
        inserting ``A local educational agency'';
            (2) by redesignating clauses (i) through (v) as 
        subparagraphs (A) through (E), respectively; and
            (3) in subparagraph (C) (as redesignated), by adding at the 
        end before the semicolon the following: ``and such agency does 
        not currently have a military installation located within its 
        geographic boundaries''.
    (f) Data; Preliminary and Final Payments.--Section 8002 of the 
Elementary and Secondary Education Act of 1965 (20 U.S.C. 7702) is 
amended by adding at the end the following:
    ``(l) Data; Preliminary and Final Payments.--
            ``(1) In general.--The Secretary shall--
                    ``(A) not later than 30 days following the 
                application deadline under section 8005(c) for a fiscal 
                year, require any local educational agency that applied 
                for a payment under subsection (b) for the fiscal year 
                to submit such data as may be necessary in order to 
                compute the payment;
                    ``(B) as soon as possible after the beginning of 
                any fiscal year, but no later than 60 days after the 
                enactment of an Act making appropriations to carry out 
                this title for the fiscal year, provide a preliminary 
                payment under subsection (b) for any local educational 
                agency that applied for a payment under subsection (b) 
                for the fiscal year and was eligible for such a payment 
                for the preceding fiscal year, in the amount of 60 
                percent of the payment for the previous year; and
                    ``(C) provide a final payment under subsection (b) 
                for any eligible local educational agency not later 
                than 12 months after the application deadline 
                established under section 8005(c), except that any 
                local educational agency failing to submit all of the 
                data required under subparagraph (A) shall be denied 
                such payment for the fiscal year for which the 
                application is made unless funds from a source other 
                than the Act described in subparagraph (B) are made 
                available to provide such payment.
            ``(2) Eligibility for payments in subsequent years.--The 
        denial of a payment under subsection (b) to a local educational 
        agency for a fiscal year pursuant to this subsection shall not 
        affect the eligibility of the local educational agency for a 
        final payment under subsection (b) for a subsequent fiscal 
        year.''.

SEC. 4. PAYMENTS FOR ELIGIBLE FEDERALLY CONNECTED CHILDREN.

    (a) Military Installation Housing Undergoing Renovation or 
Rebuilding.--
            (1) In general.--Section 8003(a)(4) of the Elementary and 
        Secondary Education Act of 1965 (20 U.S.C. 7703(a)) is 
        amended--
                    (A) in the heading, by striking ``undergoing 
                renovation'' and inserting ``undergoing renovation or 
                rebuilding'';
                    (B) by striking ``For purposes'' and inserting the 
                following:
                    ``(A) In general.--For purposes'';
                    (C) in subparagraph (A) (as designated by 
                subparagraph (B)), by inserting ``or rebuilding'' after 
                ``undergoing renovation''; and
                    (D) by adding at the end the following:
                    ``(B) Limitations.--(i)(I) Except as provided in 
                subclause (II), children described in paragraph 
                (1)(D)(i) may be deemed to be children described in 
                paragraph (1)(B) with respect to housing on Federal 
                property undergoing renovation or rebuilding in 
                accordance with subparagraph (A) for a period not to 
                exceed 2 fiscal years.
                    ``(II) If the Secretary determines, on the basis of 
                a certification provided to the Secretary by a 
                designated representative of the Secretary of Defense, 
                that the expected completion date of the renovation or 
                rebuilding of the housing has been delayed by not less 
                than 1 year, then--
                            ``(aa) in the case of a determination made 
                        by the Secretary in the first fiscal year 
                        described in subclause (I), the time period 
                        described such subclause shall be extended by 
                        the Secretary for an additional 2 years; and
                            ``(bb) in the case of a determination made 
                        by the Secretary in the second fiscal year 
                        described in subclause (I), the time period 
                        described such subclause shall be extended by 
                        the Secretary for an additional 1 year.
                    ``(ii) The number of children described in 
                paragraph (1)(D)(i) who are deemed to be children 
                described in paragraph (1)(B) with respect to housing 
                on Federal property undergoing renovation or rebuilding 
                in accordance with subparagraph (A) for any fiscal year 
                may not exceed the maximum number of children who are 
                expected to occupy that housing upon completion of the 
                renovation or rebuilding.''.
            (2) Effective date.--The amendments made by paragraph (1) 
        shall apply with respect to payments to a local educational 
        agency for fiscal years beginning before, on, or after the date 
        of the enactment of this Act.
    (b) Military ``Build to Lease'' Program Housing.--Section 8003(a) 
of the Elementary and Secondary Education Act of 1965 (20 U.S.C. 
7703(a)) is amended by adding at the end the following:
            ``(5) Military `build to lease' program housing.--
                    ``(A) In general.--For purposes of computing the 
                amount of payment for a local educational agency for 
                children identified under paragraph (1), the Secretary 
                shall consider children residing in housing initially 
                acquired or constructed under the former section 
                2828(g) of title 10, United States Code (commonly known 
                as the `Build to Lease' program), as added by section 
                801 of the Military Construction Authorization Act, 
                1984, to be children described under paragraph (1)(B) 
                if the property described is within the fenced security 
                perimeter of the military facility upon which such 
                housing is situated.
                    ``(B) Additional requirements.--If the property 
                described in subparagraph (A) is not owned by the 
                Federal Government, is subject to taxation by a State 
                or political subdivision of a State, and thereby 
                generates revenues for a local educational agency that 
                is applying to receive a payment under this section, 
                then the Secretary--
                            ``(i) shall require the local educational 
                        agency to provide certification from an 
                        appropriate official of the Department of 
                        Defense that the property is being used to 
                        provide military housing; and
                            ``(ii) shall reduce the amount of the 
                        payment under this section by an amount equal 
                        to the amount of revenue from such taxation 
                        received in the second preceding fiscal year by 
                        such local educational agency, unless the 
                        amount of such revenue was taken into account 
                        by the State for such second preceding fiscal 
                        year and already resulted in a reduction in the 
                        amount of State aid paid to such local 
                        educational agency.''.

SEC. 5. MAXIMUM AMOUNT OF BASIC SUPPORT PAYMENTS.

    Section 8003(b)(1) of the Elementary and Secondary Education Act of 
1965 (20 U.S.C. 7703(b)(1)) is amended by adding at the end the 
following:
                    ``(D) Increase in local contribution rate due to 
                unusual geographic factors.--If the current 
                expenditures in those local educational agencies which 
                the Secretary has determined to be generally comparable 
                to the local educational agency for which a computation 
                is made under subparagraph (C) are not reasonably 
                comparable because of unusual geographical factors 
                which affect the current expenditures necessary to 
                maintain, in such agency, a level of education 
                equivalent to that maintained in such other agencies, 
                then the Secretary shall increase the local 
                contribution rate for such agency under subparagraph 
                (C)(iii) by such an amount which the Secretary 
                determines will compensate such agency for the increase 
                in current expenditures necessitated by such unusual 
                geographical factors. The amount of any such 
                supplementary payment may not exceed the per-pupil 
                share (computed with regard to all children in average 
                daily attendance), as determined by the Secretary, of 
                the increased current expenditures necessitated by such 
                unusual geographic factors.''.

SEC. 6. BASIC SUPPORT PAYMENTS FOR HEAVILY IMPACTED LOCAL EDUCATIONAL 
              AGENCIES.

    (a) In General.--Section 8003(b) of the Elementary and Secondary 
Education Act of 1965 (20 U.S.C. 7703(b)) is amended--
            (1) by redesignating paragraphs (2) and (3) as paragraphs 
        (3) and (4), respectively; and
            (2) by inserting after paragraph (1) the following:
            ``(2) Basic support payments for heavily impacted local 
        educational agencies.--
                    ``(A) In general.--(i) From the amount appropriated 
                under section 8014(b) for a fiscal year, the Secretary 
                is authorized to make basic support payments to 
                eligible heavily impacted local educational agencies 
                with children described in subsection (a).
                    ``(ii) A local educational agency that receives a 
                basic support payment under this paragraph for a fiscal 
                year shall not be eligible to receive a basic support 
                payment under paragraph (1) for that fiscal year.
                    ``(B) Eligibility for continuing heavily impacted 
                local educational agencies.--
                            ``(i) Fiscal year 2001.--A heavily impacted 
                        local educational agency is eligible to receive 
                        a basic support payment under subparagraph (A) 
                        for fiscal year 2001 with respect to a number 
                        of children determined under subsection (a)(1) 
                        only if the agency received an additional 
                        assistance payment under subsection (f) (as 
                        such subsection was in effect on the day before 
                        the date of the enactment of the Impact Aid 
                        Reauthorization Act of 2000) for fiscal year 
                        2000.
                            ``(ii) Fiscal year 2002 and subsequent 
                        fiscal years.--A heavily impacted local 
                        educational agency described in clause (i) is 
                        eligible to receive a basic support payment 
                        under subparagraph (A) for fiscal year 2002 and 
                        any subsequent fiscal year with respect to a 
                        number of children determined under subsection 
                        (a)(1) only if the agency--
                                    ``(I) received a basic support 
                                payment under subparagraph (A) for 
                                fiscal year 2001; and
                                    ``(II)(aa) is a local educational 
                                agency whose boundaries are the same as 
                                a Federal military installation;
                                    ``(bb) has an enrollment of 
                                federally connected children described 
                                in subsection (a)(1) which constitutes 
                                a percentage of the total student 
                                enrollment of such agency which is not 
                                less than 35 percent, has a per-pupil 
                                expenditure that is less than the 
                                average per-pupil expenditure of the 
                                State in which the agency is located or 
                                the average per-pupil expenditure of 
                                all States (whichever average per-pupil 
                                expenditure is greater), except that a 
                                local educational agency with a total 
                                student enrollment of less than 350 
                                students shall be deemed to have 
                                satisfied such per-pupil expenditure 
                                requirement, and has a tax rate for 
                                general fund purposes which is at least 
                                95 percent of the average tax rate for 
                                general fund purposes of comparable 
                                local educational agencies in the 
                                State; or
                                    ``(cc) has a total student 
                                enrollment of not less than 25,000 
                                students, of which not less than 50 
                                percent are federally connected 
                                children described in subsection (a)(1) 
                                and not less than 6,000 of such 
                                federally connected children are 
                                children described in subparagraphs (A) 
                                and (B) of subsection (a)(1).
                            ``(iii) Resumption of eligibility.--A 
                        heavily impacted local educational agency 
                        described in clause (i) or (ii) that becomes 
                        ineligible under either such clause for one or 
                        more fiscal years may resume eligibility for a 
                        basic support payment under this paragraph for 
                        a subsequent fiscal year only if the agency 
                        meets the requirements of item (aa), (bb), or 
                        (cc) of clause (ii)(II) for that subsequent 
                        fiscal year.
                    ``(C) Eligibility for new heavily impacted local 
                educational agencies.--
                            ``(i) In general.--A heavily impacted local 
                        educational agency that did not receive an 
                        additional assistance payment under subsection 
                        (f) (as such subsection was in effect on the 
                        day before the date of the enactment of the 
                        Impact Aid Reauthorization Act of 2000) for 
                        fiscal year 2000 is eligible to receive a basic 
                        support payment under subparagraph (A) for 
                        fiscal year 2002 and any subsequent fiscal year 
                        with respect to a number of children determined 
                        under subsection (a)(1) only if the agency--
                                    ``(I) has an enrollment of 
                                federally connected children described 
                                in subsection (a)(1) which constitutes 
                                a percentage of the total student 
                                enrollment of such agency which (aa) is 
                                not less than 50 percent if such agency 
                                receives a payment on behalf of 
                                children described in subparagraphs (F) 
                                and (G) of such subsection or (bb) is 
                                not less than 40 percent if such agency 
                                does not receive a payment on behalf of 
                                such children;
                                    ``(II)(aa) is a local educational 
                                agency whose boundaries are the same as 
                                a Federal military installation; or
                                    ``(bb) is a local educational 
                                agency that has a tax rate for general 
                                fund purposes which is at least 95 
                                percent of the average tax rate for 
                                general fund purposes of comparable 
                                local educational agencies in the 
                                State; and
                                    ``(III)(aa) for a local educational 
                                agency that has a total student 
                                enrollment of 350 or more students, the 
                                agency has a per-pupil expenditure that 
                                is less than the average per-pupil 
                                expenditure of the State in which the 
                                agency is located; or
                                    ``(bb) for a local educational 
                                agency that has a total student 
                                enrollment of less than 350 students, 
                                the agency has a per-pupil expenditure 
                                that is less than the average per-pupil 
                                expenditure of a comparable agency in 
                                the State in which the agency is 
                                located.
                            ``(ii) Resumption of eligibility.--A 
                        heavily impacted local educational agency 
                        described in clause (i) that becomes ineligible 
                        under such clause for one or more fiscal years 
                        may resume eligibility for a basic support 
                        payment under this paragraph for a subsequent 
                        fiscal year only if the agency meets the 
                        requirements of subclauses (I), (II), and (III) 
                        of clause (i) for that subsequent fiscal year.
                            ``(iii) Application.--With respect to the 
                        first fiscal year for which a heavily impacted 
                        local educational agency described in clause 
                        (i) applies for a basic support payment under 
                        subparagraph (A), or with respect to the first 
                        fiscal year for which a heavily impacted local 
                        educational agency applies for a basic support 
                        payment under subparagraph (A) after becoming 
                        ineligible under clause (i) for one or more 
                        preceding fiscal years, the agency shall apply 
                        for such payment at least 1 year prior to the 
                        start of that first fiscal year.
                    ``(D) Maximum amount for regular heavily impacted 
                local educational agencies.--(i) Except as provided in 
                subparagraph (E), the maximum amount that a heavily 
                impacted local educational agency is eligible to 
                receive under this paragraph for any fiscal year is the 
                sum of the total weighted student units, as computed 
                under subsection (a)(2) (subject to clause (ii)), 
                multiplied by the greater of--
                            ``(I) four-fifths of the average per-pupil 
                        expenditure of the State in which the local 
                        educational agency is located for the third 
                        fiscal year preceding the fiscal year for which 
                        the determination is made; or
                            ``(II) four-fifths of the average per-pupil 
                        expenditure of all of the States for the third 
                        fiscal year preceding the fiscal year for which 
                        the determination is made.
                    ``(ii)(I) For a local educational agency with 
                respect to which 35 percent or more of the total 
                student enrollment of the schools of the agency are 
                children described in subparagraph (D) or (E) (or a 
                combination thereof) of subsection (a)(1), the 
                Secretary shall calculate the weighted student units of 
                such children for purposes of subsection (a)(2) by 
                multiplying the number of such children by a factor of 
                0.55.
                    ``(II) For a local educational agency that has an 
                enrollment of 100 or fewer federally connected children 
                described in subsection (a)(1), the Secretary shall 
                calculate the total number of weighted student units 
                for purposes of subsection (a)(2) by multiplying the 
                number of such children by a factor of 1.75.
                    ``(III) For a local educational agency that has an 
                enrollment of more than 100 but not more than 750 
                children described in subsection (a)(1), the Secretary 
                shall calculate the total number of weighted student 
                units for purposes of subsection (a)(2) by multiplying 
                the number of such children by a factor of 1.25.
                    ``(E) Maximum amount for large heavily impacted 
                local educational agencies.--(i)(I) Subject to clause 
                (ii), the maximum amount that a heavily impacted local 
                educational agency described in subclause (II) is 
                eligible to receive under this paragraph for any fiscal 
                year shall be determined in accordance with the formula 
                described in paragraph (1)(C).
                    ``(II) A heavily impacted local educational agency 
                described in this subclause is a local educational 
                agency that has a total student enrollment of not less 
                than 25,000 students, of which not less than 50 percent 
                are federally connected children described in 
                subsection (a)(1) and not less than 6,000 of such 
                federally connected children are children described in 
                subparagraphs (A) and (B) of subsection (a)(1).
                    ``(ii) For purposes of calculating the maximum 
                amount described in clause (i), the factor used in 
                determining the weighted student units under subsection 
                (a)(2) with respect to children described in 
                subparagraphs (A) and (B) of subsection (a)(1) shall be 
                1.35.
                    ``(F) Data.--For purposes of providing assistance 
                under this paragraph, the Secretary shall use student, 
                revenue, expenditure, and tax data from the third 
                fiscal year preceding the fiscal year for which the 
                local educational agency is applying for assistance 
                under this paragraph.''.
    (b) Payments With Respect to Fiscal Years in Which Insufficient 
Funds Are Appropriated.--Paragraph (3) of section 8003(b) of the 
Elementary and Secondary Education Act of 1965 (20 U.S.C. 7703(b)), as 
redesignated, is amended--
            (1) in subparagraph (A), by striking ``paragraph (1)'' and 
        inserting ``paragraphs (1) and (2)'';
            (2) in subparagraph (B)--
                    (A) in the heading, by inserting after ``payments'' 
                the following: ``in lieu of payments under paragraph 
                (1)'';
                    (B) in the matter preceding subclause (I) of clause 
                (i), by inserting after ```threshold payment')'' the 
                following: ``in lieu of basic support payments under 
                paragraph (1)'';
                    (C) in clause (ii), by striking ``paragraph (1)'' 
                and inserting ``clause (i)''; and
                    (D) by adding at the end the following:
                    ``(iv) In the case of a local educational agency 
                that has a total student enrollment of fewer than 1,000 
                students and that has a per-pupil expenditure that is 
                less than the average per-pupil expenditure of the 
                State in which the agency is located, the total 
                percentage used to calculate threshold payments under 
                clause (i) shall not be less than 40 percent.'';
            (3) by redesignating subparagraph (C) as subparagraph (D);
            (4) by inserting after subparagraph (B) the following:
                    ``(C) Learning opportunity threshold payments in 
                lieu of payments under paragraph (2).--For fiscal years 
                described in subparagraph (A), the learning opportunity 
                threshold payment in lieu of basic support payments 
                under paragraph (2) shall be equal to the amount 
                obtained under subparagraph (D) or (E) of paragraph 
                (2), as the case may be.''; and
            (5) in subparagraph (D) (as redesignated), by striking 
        ``computation made under subparagraph (B)'' and inserting 
        ``computations made under subparagraphs (B) and (C)''.
    (c) Conforming Amendments.--(1) Section 8002(b)(1)(C) of the 
Elementary and Secondary Education Act of 1965 (20 U.S.C. 
7702(b)(1)(C)) is amended by striking ``section 8003(b)(1)(C)'' and 
inserting ``paragraph (1)(C) of section 8003(b) or subparagraph (D) or 
(E) of paragraph (2) of such section, as the case may be''.
    (2) Section 8003 of the Elementary and Secondary Education Act of 
1965 (20 U.S.C. 7703) is amended--
            (A) in subsection (a)(1), by striking ``subsection (b), 
        (d), or (f)'' and inserting ``subsection (b) or (d)'';
            (B) in subsection (b)--
                    (i) in paragraph (1)(C), in the matter preceding 
                clause (i), by striking ``this subsection'' and 
                inserting ``this paragraph''; and
                    (ii) in paragraph (4) (as redesignated)--
                            (I) in subparagraph (A), by striking 
                        ``paragraphs (1)(B), (1)(C), and (2) of this 
                        subsection'' and inserting ``subparagraphs (B) 
                        and (C) of paragraph (1) or subparagraphs (B) 
                        through (D) of paragraph (2), as the case may 
                        be, paragraph (3) of this subsection''; and
                            (II) in subparagraph (B)--
                                    (aa) by inserting after ``paragraph 
                                (1)(C)'' the following: ``or 
                                subparagraph (D) or (E) of paragraph 
                                (2), as the case may be,''; and
                                    (bb) by striking ``paragraph 
                                (2)(B)'' and inserting ``subparagraph 
                                (B) or (C) of paragraph (3)'';
            (C) in subsection (c)(1), by striking ``paragraph (2) and 
        subsection (f)'' and inserting ``subsection (b)(2) and 
        paragraph (2)'';
            (D) by striking subsection (f); and
            (E) in subsection (i), by striking ``sections 8002 and 
        8003(b)'' and inserting ``section 8002 and subsection (b) of 
        this section''.

SEC. 7. BASIC SUPPORT PAYMENTS FOR LOCAL EDUCATIONAL AGENCIES AFFECTED 
              BY REMOVAL OF FEDERAL PROPERTY.

    Section 8003(b) of the Elementary and Secondary Education Act of 
1965 (20 U.S.C. 7703(b)), as amended by this Act, is further amended by 
adding at the end the following:
            ``(5) Local educational agencies affected by removal of 
        federal property.--
                    ``(A) In general.--In computing the amount of a 
                basic support payment under this subsection for a 
                fiscal year for a local educational agency described in 
                subparagraph (B), the Secretary shall meet the 
                additional requirements described in subparagraph (C).
                    ``(B) Local educational agency described.--A local 
                educational agency described in this subparagraph is a 
                local educational agency with respect to which Federal 
                property (i) located within the boundaries of the 
                agency, and (ii) on which one or more children reside 
                who are receiving a free public education at a school 
                of the agency, is transferred by the Federal Government 
                to another entity in any fiscal year beginning on or 
                after the date of the enactment of the Impact Aid 
                Reauthorization Act of 2000 so that the property is 
                subject to taxation by the State or a political 
                subdivision of the State.
                    ``(C) Additional requirements.--The additional 
                requirements described in this subparagraph are the 
                following:
                            ``(i) For each fiscal year beginning after 
                        the date on which the Federal property is 
                        transferred, a child described in subparagraph 
                        (B) who continues to reside on such property 
                        and who continues to receive a free public 
                        education at a school of the agency shall be 
                        deemed to be a child who resides on Federal 
                        property for purposes of computing under the 
                        applicable subparagraph of subsection (a)(1) 
                        the amount that the agency is eligible to 
                        receive under this subsection.
                            ``(ii)(I) For the third fiscal year 
                        beginning after the date on which the Federal 
                        property is transferred, and for each fiscal 
                        year thereafter, the Secretary shall, after 
                        computing the amount that the agency is 
                        otherwise eligible to receive under this 
                        subsection for the fiscal year involved, deduct 
                        from such amount an amount equal to the revenue 
                        received by the agency for the immediately 
                        preceding fiscal year as a result of the 
                        taxable status of the former Federal property.
                            ``(II) For purposes of determining the 
                        amount of revenue to be deducted in accordance 
                        with subclause (I), the local educational 
                        agency--
                                    ``(aa) shall provide for a review 
                                and certification of such amount by an 
                                appropriate local tax authority; and
                                    ``(bb) shall submit to the 
                                Secretary a report containing the 
                                amount certified under item (aa).''.

SEC. 8. ADDITIONAL PAYMENTS FOR LOCAL EDUCATIONAL AGENCIES WITH HIGH 
              CONCENTRATIONS OF CHILDREN WITH SEVERE DISABILITIES.

    (a) Repeal.--Subsection (g) of section 8003 of the Elementary and 
Secondary Education Act of 1965 (20 U.S.C. 7703(g)) is repealed.
    (b) Conforming Amendments.--(1) Section 8003 of the Elementary and 
Secondary Education Act of 1965 (20 U.S.C. 7703) is amended by 
redesignating subsections (h) and (i) as subsections (f) and (g), 
respectively.
    (2) Section 426 of the General Education Provisions Act (20 U.S.C. 
1228) is amended by striking ``subsections (d) and (g) of section 8003 
of such Act'' and inserting ``section 8003(d) of such Act''.

SEC. 9. APPLICATION FOR PAYMENTS UNDER SECTIONS 8002 AND 8003.

    Section 8005(d) of the Elementary and Secondary Education Act of 
1965 (20 U.S.C. 7705(d)) is amended--
            (1) in paragraph (2), by inserting after ``not more than 60 
        days after a deadline established under subsection (c)'' the 
        following: ``, or not more than 60 days after the date on which 
        the Secretary sends written notice to the local educational 
        agency pursuant to paragraph (3)(A), as the case may be,''; and
            (2) in paragraph (3) to read as follows:
            ``(3) Late applications.--
                    ``(A) Notice.--The Secretary shall, as soon as 
                practicable after the deadline established under 
                subsection (c), provide to each local educational 
                agency that applied for a payment under section 8002 or 
                8003 for the prior fiscal year, and with respect to 
                which the Secretary has not received an application for 
                a payment under either such section (as the case may 
                be) for the fiscal year in question, written notice of 
                the failure to comply with the deadline and instruction 
                to ensure that the application is filed not later than 
                60 days after the date on which the Secretary sends the 
                notice.
                    ``(B) Acceptance and approval of late 
                applications.--The Secretary shall not accept or 
                approve any application of a local educational agency 
                that is filed more than 60 days after the date on which 
                the Secretary sends written notice to the local 
                educational agency pursuant to subparagraph (A).''.

SEC. 10. PAYMENTS FOR SUDDEN AND SUBSTANTIAL INCREASES IN ATTENDANCE OF 
              MILITARY DEPENDENTS.

    Section 8006 of the Elementary and Secondary Education Act of 1965 
(20 U.S.C. 7706) is repealed.

SEC. 11. CONSTRUCTION.

    (a) In General.--Section 8007 of the Elementary and Secondary 
Education Act of 1965 (20 U.S.C. 7707) is amended to read as follows:

``SEC. 8007. CONSTRUCTION.

    ``(a) Construction Payments Authorized.--
            ``(1) In general.--From 70 percent of the amount 
        appropriated for each fiscal year under section 8014(e), the 
        Secretary shall make payments in accordance with this 
        subsection to each local educational agency that receives a 
        basic support payment under section 8003(b) for that fiscal 
        year.
            ``(2) Additional requirements.--A local educational agency 
        that receives a basic support payment under section 8003(b)(1) 
        shall also meet at least one of the following requirements:
                    ``(A) The number of children determined under 
                section 8003(a)(1)(C) for the agency for the preceding 
                school year constituted at least 50 percent of the 
                total student enrollment in the schools of the agency 
                during the preceding school year.
                    ``(B) The number of children determined under 
                subparagraphs (B) and (D)(i) of section 8003(a)(1) for 
                the agency for the preceding school year constituted at 
                least 50 percent of the total student enrollment in the 
                schools of the agency during the preceding school year.
            ``(3) Amount of payments.--
                    ``(A) Local educational agencies impacted by 
                military dependent children.--The amount of a payment 
                to each local educational agency described in this 
                subsection that is impacted by military dependent 
                children for a fiscal year shall be equal to--
                            ``(i)(II) 35 percent of the amount 
                        appropriated under section 8014(e) for such 
                        fiscal year; divided by
                            ``(II) the total number of weighted student 
                        units of children described in subparagraphs 
                        (B) and (D)(i) of section 8003(a)(1) for all 
                        local educational agencies described in this 
                        subsection (as calculated under section 
                        8003(a)(2)), including the number of weighted 
                        student units of such children attending a 
                        school facility described in section 8008(a) if 
                        the Secretary does not provide assistance for 
                        the school facility under that section for the 
                        prior fiscal year; multiplied by
                            ``(ii) the total number of such weighted 
                        student units for the agency.
                    ``(B) Local educational agencies impacted by 
                children who reside on indian lands.--The amount of a 
                payment to each local educational agency described in 
                this subsection that is impacted by children who reside 
                on Indian lands for a fiscal year shall be equal to--
                            ``(i)(I) 35 percent of the amount 
                        appropriated under section 8014(e) for such 
                        fiscal year; divided by
                            ``(II) the total number of weighted student 
                        units of children described in section 
                        8003(a)(1)(C) for all local educational 
                        agencies described in this subsection (as 
                        calculated under section 8003(a)(2)); 
                        multiplied by
                            ``(ii) the total number of such weighted 
                        student units for the agency.
            ``(4) Use of funds.--Any local educational agency that 
        receives funds under this subsection shall use such funds for 
        construction, as defined in section 8013(3).
    ``(b) School Facility Modernization Grants Authorized.--
            ``(1) In general.--From 30 percent of the amount 
        appropriated for each fiscal year under section 8014(e), the 
        Secretary shall award grants in accordance with this subsection 
        to eligible local educational agencies to enable the local 
        educational agencies to carry out modernization of school 
        facilities.
            ``(2) Eligibility requirements.--A local educational agency 
        is eligible to receive funds under this subsection only if--
                    ``(A) such agency (or in the case of a local 
                educational agency that does not have the authority to 
                tax or issue bonds, such agency's fiscal agent) has no 
                capacity to issue bonds or is at such agency's limit in 
                bonded indebtedness for the purposes of generating 
                funds for capital expenditures; and
                    ``(B)(i) such agency received assistance under 
                section 8002(a) for the fiscal year and has an assessed 
                value of taxable property per student in the school 
                district that is less than the average of the assessed 
                value of taxable property per student in the State in 
                which the local educational agency is located; or
                    ``(ii) such agency received assistance under 
                subsection (a) for the fiscal year and has a school 
                facility emergency, as determined by the Secretary, 
                that poses a health or safety hazard to the students 
                and school personnel assigned to the school facility.
            ``(3) Award criteria.--In awarding grants under this 
        subsection the Secretary shall consider one or more of the 
        following factors:
                    ``(A) The extent to which the local educational 
                agency lacks the fiscal capacity to undertake the 
                modernization project without Federal assistance.
                    ``(B) The extent to which property in the local 
                educational agency is nontaxable due to the presence of 
                the Federal Government.
                    ``(C) The extent to which the local educational 
                agency serves high numbers or percentages of children 
                described in subparagraphs (A), (B), (C), and (D) of 
                section 8003(a)(1).
                    ``(D) The need for modernization to meet--
                            ``(i) the threat that the condition of the 
                        school facility poses to the safety and well-
                        being of students;
                            ``(ii) overcrowding conditions as evidenced 
                        by the use of trailers and portable buildings 
                        and the potential for future overcrowding 
                        because of increased enrollment; and
                            ``(iii) facility needs resulting from 
                        actions of the Federal Government.
                    ``(E) The age of the school facility to be 
                modernized.
            ``(4) Other award provisions.--
                    ``(A) Federal share.--The Federal funds provided 
                under this subsection to a local educational agency 
                described in subparagraph (C) shall not exceed 50 
                percent of the total cost of the project to be assisted 
                under this subsection. A local educational agency may 
                use in-kind contributions to meet the matching 
                requirement of the preceding sentence.
                    ``(B) Maximum grant.--A local educational agency 
                described in subparagraph (C) may not receive a grant 
                under this subsection in an amount that exceeds 
                $3,000,000 during any 5-year period.
                    ``(C) Local educational agency described.--A local 
                educational agency described in this subparagraph is a 
                local educational agency that has the authority to 
                issue bonds but is at such agency's limit in bonded 
                indebtedness for the purposes of generating funds for 
                capital expenditures.
            ``(5) Applications.--A local educational agency that 
        desires to receive a grant under this subsection shall submit 
        an application to the Secretary at such time, in such manner, 
        and accompanied by such information as the Secretary may 
        require. Each application shall contain--
                    ``(A) documentation certifying such agency's lack 
                of bonding capacity;
                    ``(B) a listing of the school facilities to be 
                modernized, including the number and percentage of 
                children determined under section 8003(a)(1) in average 
                daily attendance in each school facility;
                    ``(C) a description of the ownership of the 
                property on which the current school facility is 
                located or on which the planned school facility will be 
                located;
                    ``(D) a description of any school facility 
                deficiency that poses a health or safety hazard to the 
                occupants of the school facility and a description of 
                how that deficiency will be repaired;
                    ``(E) a description of the modernization to be 
                supported with funds provided under this subsection;
                    ``(F) a cost estimate of the proposed 
                modernization; and
                    ``(G) such other information and assurances as the 
                Secretary may reasonably require.
            ``(6) Emergency grants.--
                    ``(A) Applications.--Each local educational agency 
                described in paragraph (2)(B)(ii) that desires a grant 
                under this subsection shall include in the application 
                submitted under paragraph (5) a signed statement from 
                an appropriate local official certifying that a health 
                or safety deficiency exists.
                    ``(B) Priority.--If the Secretary receives more 
                than one application from local educational agencies 
                described in paragraph (2)(B)(ii) for grants under this 
                subsection for any fiscal year, the Secretary shall 
                give priority to local educational agencies based on 
                the severity of the emergency, as determined by the 
                Secretary, and when the application was received.
                    ``(C) Consideration for following year.--A local 
                educational agency described in paragraph (2)(B)(ii) 
                that applies for a grant under this subsection for any 
                fiscal year and does not receive the grant shall have 
                the application for the grant considered for the 
                following fiscal year, subject to the priority 
                described in subparagraph (B).''.
    (b) Definition.--Section 8013 of the Elementary and Secondary 
Education Act of 1965 (20 U.S.C. 7713) is amended by adding at the end 
the following:
            ``(13) Modernization.--The term `modernization' means 
        repair, renovation, alteration, or construction, including--
                    ``(A) the concurrent installation of equipment; and
                    ``(B) the complete or partial replacement of an 
                existing school facility, but only if such replacement 
                is less expensive and more cost-effective than repair, 
                renovation, or alteration of the school facility.''.

SEC. 12. FEDERAL ADMINISTRATION.

    Section 8010(c) of the Elementary and Secondary Education Act of 
1965 (20 U.S.C. 7710(c)) is amended--
            (1) by striking paragraph (1);
            (2) by redesignating paragraphs (2) and (3) as paragraphs 
        (1) and (2), respectively; and
            (3) in paragraph (2)(D) (as redesignated), by striking 
        ``section 5(d)(2) of the Act of September 30, 1950 (Public Law 
        874, 81st Congress) (as such section was in effect on the day 
        preceding the date of enactment of the Improving America's 
        Schools Act of 1994) or''.

SEC. 13. ADMINISTRATIVE HEARINGS AND JUDICIAL REVIEW.

    (a) Administrative Hearings.--
            (1) In general.--Section 8011(a) of the Elementary and 
        Secondary Education Act of 1965 (20 U.S.C. 7711) is amended by 
        adding at the end before the period the following: ``if the 
        local educational agency or State, as the case may be, submits 
        to the Secretary a request for the hearing not later than 60 
        days after the date of the action of the Secretary under this 
        title''.
            (2) Effective date.--The amendment made by paragraph (1) 
        shall apply with respect to an action of the Secretary under 
        title VIII of the Elementary and Secondary Education Act of 
        1965 (20 U.S.C. 7701 et seq.) initiated on or after the date of 
        the enactment of this Act.
    (b) Judicial Review of Secretarial Action.--Section 8011(b)(1) of 
the Elementary and Secondary Education Act of 1965 (20 U.S.C. 
7711(b)(1)) is amended by striking ``60 days'' and inserting ``30 
working days (as determined by the local educational agency or 
State)''.

SEC. 14. DEFINITIONS.

    Section 8013(5)(A)(iii) of the Elementary and Secondary Education 
Act of 1965 (20 U.S.C. 7713(5)(A)(iii)) is amended--
            (1) in subclause (I), by striking ``or'' at the end; and
            (2) by adding at the end the following:
                            ``(III) affordable housing assisted under 
                        the Native American Housing Assistance and 
                        Self-Determination Act of 1996; or''.

SEC. 15. AUTHORIZATION OF APPROPRIATIONS.

    (a) Payments for Federal Acquisition of Real Property.--Section 
8014(a) of the Elementary and Secondary Education Act of 1965 (20 
U.S.C. 7714(a)) is amended by striking ``$16,750,000 for fiscal year 
1995'' and inserting ``$32,000,000 for fiscal year 2000''.
    (b) Basic Payments.--Section 8014(b) of the Elementary and 
Secondary Education Act of 1965 (20 U.S.C. 7714(b)) is amended--
            (1) by striking ``subsections (b) and (f) of section 8003'' 
        and inserting ``section 8003(b)'';
            (2) by striking ``$775,000,000 for fiscal year 1995'' and 
        inserting ``$809,400,000 for fiscal year 2000''; and
            (3) by striking ``, of which 6 percent'' and all that 
        follows and inserting a period.
    (c) Payments for Children With Disabilities.--Section 8014(c) of 
the Elementary and Secondary Education Act of 1965 (20 U.S.C. 7714(c)) 
is amended by striking ``$45,000,000 for fiscal year 1995'' and 
inserting ``$50,000,000 for fiscal year 2000''.
    (d) Payments for Increases in Military Children.--Subsection (d) of 
section 8014 of the Elementary and Secondary Education Act of 1965 (20 
U.S.C. 7714) is repealed.
    (e) Construction.--Section 8014(e) of the Elementary and Secondary 
Education Act of 1965 (20 U.S.C. 7714(e)) is amended by striking 
``$25,000,000 for fiscal year 1995'' and inserting ``$10,052,000 for 
fiscal year 2000''.
    (f) Facilities Maintenance.--Section 8014(f) of the Elementary and 
Secondary Education Act of 1965 (20 U.S.C. 7714(f)) is amended by 
striking ``$2,000,000 for fiscal year 1995'' and inserting ``$5,000,000 
for fiscal year 2000''.
    (g) Additional Assistance for Certain Local Educational Agencies 
Impacted by Federal Property Acquisition.--Section 8014(g) of the 
Elementary and Secondary Education Act of 1965 (20 U.S.C. 7714(g)) is 
amended--
            (1) in the heading, by striking ``Federal Property Local 
        Educational Agencies'' and inserting ``Local Educational 
        Agencies Impacted by Federal Property Acquisition''; and
            (2) by striking ``such sums as are necessary beginning in 
        fiscal year 1998 and for each succeeding fiscal year'' and 
        inserting ``$1,500,000 for fiscal year 2000 and such sums as 
        may be necessary for each of the four succeeding fiscal 
        years''.

SEC. 16. EFFECTIVE DATE.

    This Act, and the amendments made by this Act, shall take effect on 
October 1, 2000, or the date of the enactment of this Act, whichever 
occurs later.

            Passed the House of Representatives May 15, 2000.

            Attest:

                                                                 Clerk.