[Congressional Bills 114th Congress]
[From the U.S. Government Publishing Office]
[S. 658 Introduced in Senate (IS)]

114th CONGRESS
  1st Session
                                 S. 658

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


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             March 4, 2015

 Mr. Thune (for himself and Ms. Hirono) introduced the following bill; 
     which was read twice and referred to the Committee on Health, 
                     Education, Labor, and Pensions

_______________________________________________________________________

                                 A BILL


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

    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 ``Local Taxpayer Relief Act''.

SEC. 2. REFERENCES.

    Except as otherwise expressly provided, whenever in this Act an 
amendment or repeal is expressed in terms of an amendment to, or repeal 
of, a section or other provision, the reference shall be considered to 
be made to a section or other provision of the Elementary and Secondary 
Education Act of 1965 (20 U.S.C. 6301 et seq.).

SEC. 3. AMENDMENTS TO IMPACT AID IMPROVEMENT ACT OF 2012.

    Section 563(c) of the National Defense Authorization Act for Fiscal 
Year 2013 (Public Law 112-239; 126 Stat. 1748) is amended--
            (1) by striking paragraphs (1) and (4); and
            (2) by redesignating paragraphs (2) and (3) as paragraphs 
        (1) and (2), respectively.

SEC. 4. PAYMENTS RELATING TO FEDERAL ACQUISITION OF REAL PROPERTY.

    (a) Amendments.--Section 8002 (20 U.S.C. 7702) is amended--
            (1) in subsection (b)--
                    (A) in paragraph (2), by inserting ``as calculated 
                under paragraph (3)'' before the period at the end; and
                    (B) by striking subparagraph (B) of paragraph (3) 
                and inserting the following:
                    ``(B) Special rule.--In the case of Federal 
                property eligible under this section that is within the 
                boundaries of 2 or more local educational agencies that 
                are eligible under this section, any of such agencies 
                may ask the Secretary to calculate (and the Secretary 
                shall calculate) the taxable value of the eligible 
                Federal property that is within its boundaries by--
                            ``(i) first calculating the per-acre value 
                        of the eligible Federal property separately for 
                        each eligible local educational agency that 
                        shares the Federal property, as provided in 
                        subparagraph (A)(ii);
                            ``(ii) then averaging the resulting per-
                        acre values of the eligible Federal property 
                        from each eligible local educational agency 
                        that shares the Federal property; and
                            ``(iii) then applying the average per-acre 
                        value to determine the total taxable value of 
                        the eligible Federal property under 
                        subparagraph (A)(iii) for the requesting local 
                        educational agency.'';
            (2) by striking subsection (f) and inserting the following:
    ``(f) Special Rule.--Beginning with fiscal year 2015, a local 
educational agency shall be deemed to meet the requirements of 
subsection (a)(1)(C) if the agency was eligible under paragraph (1) or 
(3) of this subsection, as in effect on the day before the date of 
enactment of the Local Taxpayer Relief Act'';
            (3) by striking subsection (g) and inserting the following:
    ``(g) Former Districts.--
            ``(1) Consolidations.--For fiscal year 2006 and all 
        succeeding fiscal years, if a local educational agency 
        described in paragraph (2) is formed at any time after 1938 by 
        the consolidation of 2 or more former school districts, the 
        local educational agency may elect to have the Secretary 
        determine its eligibility and any amount for which the local 
        educational agency is eligible under this section for any 
        fiscal year on the basis of 1 or more of those former 
        districts, as designated by the local educational agency.
            ``(2) Eligible local educational agencies.--A local 
        educational agency referred to in paragraph (1) is--
                    ``(A) any local educational agency that, for fiscal 
                year 1994 or any preceding fiscal year, applied, and 
                was determined to be eligible under, section 2(c) of 
                the Act of September 20, 1950 (Public Law 874, 81st 
                Congress), as that section was in effect for that 
                fiscal year; or
                    ``(B) a local educational agency formed by the 
                consolidation of 2 or more districts, at least 1 of 
                which was eligible for assistance under this section 
                for the fiscal year preceding the year of the 
                consolidation, if for fiscal years 2006 through 2015, 
                the local educational agency had notified the Secretary 
                of the designation not later than 30 days after the 
                date of enactment of the Local Taxpayer Relief Act.
            ``(3) Amount.--A local educational agency eligible under 
        this subsection shall receive a foundation payment as provided 
        for under subparagraphs (A) and (B) of subsection (h)(1), as in 
        effect on the date of enactment of the Consolidated 
        Appropriations Act, 2014, except that the foundation payment 
        shall be calculated based on the most recent payment received 
        by the local educational agency based on its former common 
        status.
            ``(4) Availability of funds.--Notwithstanding any other 
        provision of law limiting the period during which the Secretary 
        may obligate funds appropriated for any fiscal year after 2005, 
        the Secretary may obligate funds remaining after final payments 
        have been made from any of such fiscal years to carry out this 
        subsection.'';
            (4) in subsection (h)--
                    (A) in paragraph (1)(B)(i), by striking 
                ``subsection (b)(1)(C)'' and inserting ``subparagraph 
                (A)(i)(III) or (C) of subsection (b)(1)'';
                    (B) by redesignating paragraphs (2) through (4) as 
                paragraphs (3) through (5), respectively;
                    (C) by inserting after paragraph (1) the following:
            ``(2) Foundation payments for applicants eligible prior to 
        fiscal year 2006.--
                    ``(A) First year.--From any amount remaining after 
                making payments under paragraph (1) and subsection 
                (i)(1) for the fiscal year involved, the Secretary 
                shall make a payment in an amount of 90 percent of the 
                amount as determined in accordance with subparagraph 
                (C)(i) of paragraph (3) to a local educational agency 
                that is eligible for a payment for such year and--
                            ``(i) is, or was, eligible to receive a 
                        payment under this section for fiscal year 
                        2016; and
                            ``(ii)(I) was eligible and received a 
                        payment prior to fiscal year 2006 but did not 
                        apply in each of the succeeding fiscal years; 
                        or
                            ``(II) met the eligibility requirements as 
                        provided in subsection (a) prior to fiscal year 
                        2006 but was denied a payment under subsection 
                        (b)(1)(A)(i)(III) or subsection (b)(1)(C).
                    ``(B) Second and succeeding years.--For any 
                succeeding fiscal year after the first fiscal year that 
                a local educational agency receives a foundation 
                payment under subparagraph (A), the amount of the local 
                educational agency's foundation payment under this 
                paragraph shall be equal to the local educational 
                agency's foundation payment under this paragraph for 
                the first fiscal year.'';
                    (D) in paragraph (3)(A), as redesignated by 
                subparagraph (B), by striking ``paragraph (1)'' and 
                inserting ``paragraphs (1) and (2)'';
                    (E) in paragraph (4), as redesignated by 
                subparagraph (B)--
                            (i) by striking ``under paragraphs (1) and 
                        (2)'' and inserting ``under paragraphs (1), 
                        (2), and (3)'' and strike ``under paragraph (1) 
                        or (2) or subsection (i)(1);'' and
                            (ii) by striking ``under paragraph (1) or 
                        (2)'' and inserting ``under paragraph (1), (2), 
                        or (3)''; and
                    (F) by striking paragraph (5), as redesignated by 
                subparagraph (B), and inserting the following:
            ``(5) Data.--For each local educational agency that 
        received a payment under this section for fiscal year 2010 
        through the fiscal year in which the Local Taxpayer Relief Act 
        was enacted, the Secretary shall not make a payment under 
        paragraph (4) to a local educational agency that fails to 
        submit, within 60 days of the date the Secretary notified the 
        agency that the information is needed, the data necessary to 
        calculate the maximum amount of a payment under subsection (b) 
        for that local educational agency.'';
            (5) in subsection (i)(1), by striking ``subsection (h)(3)'' 
        and inserting ``(h)(4)''; and
            (6) in subsection (l), by striking ``(h)(4)(B)'' and 
        inserting ``(h)(2)''.
    (b) Effective Date.--The amendments made by this section shall 
apply to applications submitted for fiscal year 2010 and all succeeding 
fiscal years.

SEC. 5. PAYMENTS FOR ELIGIBLE FEDERALLY CONNECTED CHILDREN.

    Section 8003 (20 U.S.C. 7703) is amended--
            (1) in subsection (a)--
                    (A) in paragraph (1), in the matter preceding 
                subparagraph (A), by inserting after ``such agency,'' 
                the following: ``including those children enrolled in a 
                State that has a State open enrollment policy (but not 
                including those children enrolled in a distance 
                learning program not residing within the defined 
                boundaries of the agency),'';
                    (B) by striking paragraph (4) and inserting the 
                following:
            ``(4) Military installation and indian housing undergoing 
        renovation or rebuilding.--
                    ``(A) Military installation housing.--Beginning in 
                fiscal year 2014, in determining the amount of a 
                payment for a local educational agency for children 
                described in paragraph (1)(D)(i), the Secretary shall 
                consider those children as if they were children 
                described in paragraph (1)(B) if the Secretary 
                determines, on the basis of a certification provided to 
                the Secretary by a designated representative of the 
                Secretary of Defense, that those children would have 
                resided in housing on Federal property if the housing 
                was not undergoing renovation or rebuilding. The total 
                number of children treated as children described in 
                paragraph (1)(B) shall not exceed the lesser of--
                            ``(i) the total number of children eligible 
                        under paragraph (1)(B) for the year prior to 
                        the initiation of the housing project on 
                        Federal property undergoing renovation or 
                        rebuilding; or
                            ``(ii) the total number of federally 
                        connected children enrolled in the local 
                        educational agency as stated in the application 
                        filed for the payment for the year for which 
                        the determination is made.
                    ``(B) Indian lands.--Beginning in fiscal year 2014, 
                in determining the amount of a payment for a local 
                educational agency that received a payment for children 
                that resided on Indian lands in accordance with 
                paragraph (1)(C) for the fiscal year prior to the 
                fiscal year for which the local educational agency is 
                making an application, the Secretary shall consider 
                those children to be children described in paragraph 
                (1)(C) if the Secretary determines on the basis of 
                certification provided to the Secretary by a designated 
                representative of the Secretary of the Interior or the 
                Secretary of Housing and Urban Development that those 
                children would have resided in housing on Indian lands 
                if the housing was not undergoing renovation or 
                rebuilding. The total number of children treated as 
                children described in paragraph (1)(C) shall not exceed 
                the lesser of--
                            ``(i) the total number of children eligible 
                        under paragraph (1)(C) for the year prior to 
                        the initiation of the housing project on Indian 
                        lands undergoing renovation or rebuilding; or
                            ``(ii) the total number of federally 
                        connected children enrolled in the local 
                        educational agency as stated in the application 
                        filed for the payment for the year for which 
                        the determination is made.
                    ``(C) Eligible housing.--Renovation or rebuilding 
                shall be defined as projects considered as 
                capitalization, modernization, or restoration, as 
                defined by the Secretary of Defense or the Secretary of 
                the Interior (as the case may be) and are projects that 
                last more than 30 days, but do not include `sustainment 
                projects' such as painting, carpeting, or minor 
                repairs.''; and
                    (C) in paragraph (5)(A), by striking ``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.'' and inserting ``1984, or under 
                lease of off-base property under subchapter IV of 
                chapter 169 of title 10, United States Code, to be 
                children described under paragraph (1)(B) if the 
                property described is within the fenced security 
                perimeter of the military facility or attached to and 
                under any type of force protection agreement with the 
                military installation where such housing is 
                situated.'';
            (2) in subsection (b)--
                    (A) in paragraph (2)--
                            (i) in subparagraph (B)--
                                    (I) in the subparagraph heading, by 
                                striking ``continuing'';
                                    (II) by striking clause (i) and 
                                inserting the following:
                            ``(i) In general.--A heavily impacted local 
                        educational agency is eligible to receive a 
                        basic support payment under subparagraph (A) 
                        with respect to a number of children determined 
                        under subsection (a)(1) if the agency--
                                    ``(I) is a local educational agency 
                                whose boundaries are the same as a 
                                Federal military installation or the 
                                boundaries are the same as island 
                                property designated by the Secretary of 
                                the Interior to be property that is 
                                held in trust by the Federal Government 
                                and the agency has no taxing authority;
                                    ``(II) is a local educational 
                                agency--
                                            ``(aa) that has an 
                                        enrollment of children 
                                        described in subsection (a)(1) 
                                        that constitutes a percentage 
                                        of the total student enrollment 
                                        of the agency that is not less 
                                        than 45 percent;
                                            ``(bb) that has a per-pupil 
                                        expenditure that is less than--

                                                    ``(AA) for an 
                                                agency that has a total 
                                                student enrollment of 
                                                500 or more students, 
                                                125 percent of the 
                                                average per-pupil 
                                                expenditure of the 
                                                State in which the 
                                                agency is located; or

                                                    ``(BB) for an 
                                                agency that has a total 
                                                student enrollment of 
                                                less than 500, 150 
                                                percent of the average 
                                                per-pupil expenditure 
                                                of the State in which 
                                                the agency is located, 
                                                or the average per-
                                                pupil expenditure of 3 
                                                or more comparable 
                                                local educational 
                                                agencies in the State 
                                                in which the agency is 
                                                located; and

                                            ``(cc) that is an agency 
                                        that has a tax rate for general 
                                        fund purposes that is at least 
                                        95 percent of the average tax 
                                        rate for general fund purposes 
                                        of comparable local educational 
                                        agencies in the State;
                                    ``(III) 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 children described in 
                                subsection (a)(1) and not less than 
                                5,000 of such children are children 
                                described in subparagraphs (A) and (B) 
                                of subsection (a)(1); or
                                    ``(IV) is a local educational 
                                agency that was eligible for and 
                                received a payment under this paragraph 
                                in fiscal year 2012 and--
                                            ``(aa) has an enrollment of 
                                        children described in 
                                        subsection (a)(1) that 
                                        constitutes a percentage of the 
                                        total student enrollment of the 
                                        agency that is not less than 20 
                                        percent;
                                            ``(bb) for the 3 fiscal 
                                        years preceding the fiscal year 
                                        for which the determination is 
                                        made, the average enrollment of 
                                        children who are not described 
                                        in subsection (a)(1) and who 
                                        are eligible for a free or 
                                        reduced price lunch under the 
                                        Richard B. Russell National 
                                        School Lunch Act constitutes a 
                                        percentage of the total student 
                                        enrollment of the agency that 
                                        is not less than 65 percent; 
                                        and
                                            ``(cc) has a tax rate for 
                                        general fund purposes which is 
                                        not less than 1.25 percent of 
                                        the average tax rate for 
                                        general fund purposes for 
                                        comparable local educational 
                                        agencies in the State.'';
                                    (III) by striking clause (ii) and 
                                inserting the following:
                            ``(ii) Loss of eligibility.--
                                    ``(I) In general.--Subject to 
                                subclause (II), a heavily impacted 
                                local educational agency that met the 
                                requirements of clause (i) for a fiscal 
                                year shall be ineligible to receive a 
                                basic support payment under 
                                subparagraph (A) if the agency fails to 
                                meet the requirements of clause (i) for 
                                a subsequent fiscal year, except that 
                                such agency shall continue to receive a 
                                basic support payment under this 
                                paragraph for the fiscal year for which 
                                the ineligibility determination is 
                                made.
                                    ``(II) Exception.--A local 
                                educational agency that is eligible 
                                under subparagraph (A) but whose tax 
                                rate for general fund purposes falls 
                                below 95 percent of the average tax 
                                rate for general fund purposes of local 
                                educational agencies in the State for 2 
                                consecutive years shall lose its 
                                eligibility and be subject to subclause 
                                (I).'';
                                    (IV) by striking clause (iii) and 
                                inserting the following:
                            ``(iii) Application.--With respect to the 
                        first 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 1 or more 
                        preceding fiscal years, the agency shall apply 
                        for such payment at least 1 year prior to the 
                        start of that fiscal year.''; and
                                    (V) by adding at the end the 
                                following:
                            ``(iv) Special rule.--Notwithstanding 
                        clause (i)(II), a local educational agency 
                        shall be considered eligible to receive a basic 
                        support payment under subparagraph (A) with 
                        respect to the number of children determined 
                        under subsection (a)(1) if the agency--
                                    ``(I) has an enrollment of children 
                                described in subsection (a)(1), 
                                including, for purposes of determining 
                                eligibility, those children described 
                                in subparagraphs (F) and G) of such 
                                subsection, that constitutes a 
                                percentage of the total student 
                                enrollment of the agency that is not 
                                less than 35 percent; and
                                    ``(II) was eligible to receive 
                                assistance under paragraph (2) for 
                                fiscal year 2001.'';
                            (ii) by striking subparagraph (C) and 
                        inserting the following:
                    ``(C) Maximum amount for heavily impacted local 
                educational agencies.--
                            ``(i) In general.--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) and 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) Special rule.--(I)(aa) 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), and 
                        that has an enrollment of children described in 
                        subparagraph (A), (B), or (C) of such 
                        subsection equal to at least 10 percent of the 
                        agency's total enrollment, the Secretary shall 
                        calculate the weighted student units of those 
                        children described in subparagraph (D) or (E) 
                        of such subsection by multiplying the number of 
                        such children by a factor of 0.55.
                            ``(bb) For any local educational agency 
                        that received a payment under this clause in 
                        fiscal year 2012 (as such clause was in effect 
                        for that fiscal year), the local educational 
                        agency shall not be required to have an 
                        enrollment of children described in 
                        subparagraph (A), (B), or (C) of subsection 
                        (a)(1) equal to at least 10 percent of the 
                        agency's total enrollment.
                            ``(II) For a local educational agency that 
                        has an enrollment of 100 or fewer 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 
                        does not qualify under subparagraph (B)(i)(I) 
                        and has an enrollment of more than 100 but not 
                        more than 1,000 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.'';
                            (iii) by amending subparagraph (D) to read 
                        as follows:
                    ``(D) 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 children described in subsection (a)(1) and not 
                less than 5,000 of such 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.'';
                            (iv) by striking subparagraph (E);
                            (v) by redesignating subparagraphs (F), 
                        (G), and (H) as subparagraphs (E), (F), and 
                        (G), respectively;
                            (vi) in subparagraph (E) (as redesignated 
                        by clause (v))--
                                    (I) by striking clause (ii);
                                    (II) by striking ``; and'' at the 
                                end of clause (i) and inserting a 
                                period; and
                                    (III) by striking ``the Secretary'' 
                                and all that follows through ``shall 
                                use'' and inserting ``the Secretary 
                                shall use'';
                            (vii) in subparagraph (F) (as redesignated 
                        by clause (v))--
                    ``(G) Determination of average tax rates for 
                general fund purposes.--
                            ``(i) In general.--Except as provided in 
                        clause (ii), for the purpose of determining the 
                        average tax rates for general fund purposes for 
                        local educational agencies in a State under 
                        this paragraph, the Secretary shall use 
                        either--
                                    ``(I) the average tax rate for 
                                general fund purposes for comparable 
                                local educational agencies, as 
                                determined by the Secretary in 
                                regulations; or
                                    ``(II) the average tax rate of all 
                                the local educational agencies in the 
                                State.
                            ``(ii) Special rule.--
                                    ``(I) Fiscal years 2010-2015.--For 
                                fiscal years 2010 through 2015, any 
                                local educational agency that was found 
                                ineligible to receive a payment under 
                                subsection (b)(2)(A) because the 
                                Secretary determined that it failed to 
                                meet the average tax rate requirement 
                                for general fund purposes in 
                                subparagraph (B)(i)(II)(bb), as in 
                                effect on the day before the date of 
                                enactment of the Local Taxpayer Relief 
                                Act, shall be considered to have met 
                                that requirement, if the State 
                                determined, through an alternate 
                                calculation of average tax rates for 
                                general fund purposes, that such local 
                                educational agency met that 
                                requirement.
                                    ``(II) Subsequent fiscal years 
                                after 2015.--For any fiscal year after 
                                fiscal year 2015, any local educational 
                                agency that met the requirements of 
                                subclause (I) and received a payment 
                                under such subclause for 1 or more of 
                                fiscal years 2010 through 2015 may 
                                continue to have the State use such 
                                subclause (I) to determine if the local 
                                educational agency has met the average 
                                tax rate requirement of clause (i), 
                                including using the alternate 
                                methodology described in subclause (I) 
                                to determine whether the local 
                                educational agency has met the average 
                                tax rate requirement for general fund 
                                purposes under subclause 
                                (B)(i)(II)(bb), as in effect on the day 
                                before the date of enactment of the 
                                Local Taxpayer Relief Act.
                                    ``(III) Availability of funds.--
                                Notwithstanding any other provision of 
                                law limiting the period during which 
                                the Secretary may obligate funds 
                                appropriated for any fiscal year after 
                                2012, the Secretary shall reserve an 
                                amount equal to a total of $14,000,000 
                                from funds that remain unobligated 
                                under this section from fiscal year 
                                2013 or 2014 in order to make payments 
                                under this subparagraph for fiscal 
                                years 2011 through 2014.''; and
                            (viii) in subparagraph (G) (as redesignated 
                        by clause (v))--
                                    (I) in clause (i)--
                                            (aa) by striking ``(B), 
                                        (C), (D). or (E),'' and 
                                        inserting ``(B), (C), or 
                                        (D),'';
                                            (bb) by striking ``by 
                                        reason of'' and inserting ``due 
                                        to'';
                                            (cc) by inserting after 
                                        ``clause (iii),'' the 
                                        following: ``or as the direct 
                                        result of base realignment and 
                                        closure or modularization as 
                                        determined by the Secretary of 
                                        Defense and force structure 
                                        change or force relocation,''; 
                                        and
                                            (dd) by inserting before 
                                        the period at the end the 
                                        following: ``or during such 
                                        time as activities associated 
                                        with base closure and 
                                        realignment, modularization, 
                                        force structure change, or 
                                        force relocation is ongoing''; 
                                        and
                                    (II) in clause (ii), by striking 
                                ``(D) or (E)'' in both places such term 
                                appears and inserting ``(C) or (D)''; 
                                and
                    (B) in paragraph (3)--
                            (i) in subparagraph (B)--
                                    (I) by striking clause (iii) and 
                                inserting the following:
                    ``(iii) In the case of a local educational agency 
                providing a free public education to students enrolled 
                in kindergarten through grade 12, that enrolls students 
                described in subparagraphs (A), (B), and (D) of 
                subsection (a)(1) only in grades 9 through 12, and that 
                received a final payment in fiscal year 2009 calculated 
                under this paragraph (as this paragraph was in effect 
                on the day before the date of enactment of the Local 
                Taxpayer Relief Act) for students in grades 9 through 
                12, the Secretary shall, in calculating the agency's 
                payment, consider only that portion of such agency's 
                total enrollment of students in grades 9 through 12 
                when calculating the percentage under clause (i)(I) and 
                only that portion of the total current expenditures 
                attributed to the operation of grades 9 through 12 in 
                such agency when calculating the percentage under 
                clause (i)(II).'';
                                    (II) by redesignating clause (iv) 
                                as clause (v); and
                                    (III) by inserting after clause 
                                (iii) the following:
                            ``(iv) For any local educational agency 
                        that is providing a program of distant learning 
                        to children not residing within the legally 
                        defined boundaries of the agency, the Secretary 
                        shall disregard such children from such 
                        agency's total enrollment when calculating the 
                        percentage under subclause (I) of clause (i) 
                        and shall disregard any funds received for such 
                        children when calculating the total current 
                        expenditures attributed to the operation of 
                        such agency when calculating the percentage 
                        under subclause (II) of clause (i).'';
                            (ii) in subparagraph (C), by striking 
                        ``subparagraph (D) or (E) of paragraph (2), as 
                        the case may be'' and inserting ``paragraph 
                        (2)(D)''; and
                            (iii) by striking subparagraph (D) and 
                        inserting the following:
                    ``(D) Ratable distribution.--For any fiscal year 
                described in subparagraph (A) for which the sums 
                available exceed the amount required to pay each local 
                educational agency 100 percent of its threshold 
                payment, the Secretary shall distribute the excess sums 
                to each eligible local educational agency that has not 
                received its full amount computed under paragraph (1) 
                or (2) (as the case may be) by multiplying--
                            ``(i) a percentage, the denominator of 
                        which is the difference between the full amount 
                        computed under paragraph (1) or (2) (as the 
                        case may be) for all local educational agencies 
                        and the amount of the threshold payment as 
                        calculated under subparagraphs (B) and (C) of 
                        all local educational agencies, and the 
                        numerator of which is the aggregate amount of 
                        the excess sums, by
                            ``(ii) the difference between the full 
                        amount computed under paragraph (1) or (2) (as 
                        the case may be) for the agency and the amount 
                        of the threshold payment as calculated under 
                        subparagraphs (B) and (C) of the agency.'';
            (3) in subsection (c), by striking paragraph (2) and 
        inserting the following:
            ``(2) Exception.--Calculation of payments for a local 
        educational agency shall be based on data from the fiscal year 
        for which the agency is making an application for payment if 
        such agency--
                    ``(A) is newly established by a State, for the 
                first year of operation of such agency only;
                    ``(B) was eligible to receive a payment under this 
                section for the previous fiscal year and has had an 
                overall increase in enrollment (as determined by the 
                Secretary in consultation with the Secretary of 
                Defense, the Secretary of the Interior, or the heads of 
                other Federal agencies)--
                            ``(i) of not less than 10 percent, or 100 
                        students, of children described in--
                                    ``(I) subparagraph (A), (B), (C), 
                                or (D) of subsection (a)(1); or
                                    ``(II) subparagraph (F) or (G) of 
                                subsection (a)(1), but only to the 
                                extent such children are civilian 
                                dependents of employees of the 
                                Department of Defense or the Department 
                                of the Interior; and
                            ``(ii) that is the direct result of closure 
                        or realignment of military installations under 
                        the base closure process or the relocation of 
                        members of the Armed Forces and civilian 
                        employees of the Department of Defense as part 
                        of force structure changes or movements of 
                        units or personnel between military 
                        installations or because of actions initiated 
                        by the Secretary of the Interior or head of 
                        another Federal agency; and
                    ``(C) was eligible to receive a payment under this 
                section for the previous fiscal year and has had an 
                overall increase in enrollment (as determined by the 
                Secretary)--
                            ``(i) of not less than 10 percent, or 100 
                        students, of children described in subsection 
                        (a)(1); and
                            ``(ii) that is the direct result of the 
                        closure of a local educational agency that 
                        received a payment under paragraph (1) or (2) 
                        of subsection (b) in the previous fiscal 
                        year.'';
            (4) in subsection (e)--
                    (A) by striking paragraph (1) and inserting the 
                following:
            ``(1) In general.--In the case of any local educational 
        agency whose payment under subsection (b) for a fiscal year is 
        determined to be reduced by an amount greater than $5,000,000 
        or by 20 percent, as compared to the amount received in the 
        previous fiscal year, the Secretary shall, subject to paragraph 
        (2), pay a local educational agency, for each of the 3 years 
        following the reduction under subsection (b), the amount 
        determined under paragraph (2).
            ``(2) Amount of reduction.--Subject to paragraph (3), a 
        local educational agency described in paragraph (1) shall 
        receive--
                    ``(A) for the first year for which the reduced 
                payment is determined, the amount shall not be less 
                than 90 percent of the total amount that the local 
                educational agency received under paragraph (1) or (2) 
                of subsection (b) in the fiscal year prior to the 
                reduction (referred to in this paragraph as the `base 
                year');
                    ``(B) for the second year following such reduction, 
                the amount shall be not less than 85 percent of the 
                total amount that the local educational agency received 
                under paragraph (1) or (2) of subsection (b) in the 
                base year.
                    ``(C) for the third year following such reduction, 
                the amount shall not be less than 80 percent of the 
                total amount that the local educational agency received 
                under paragraph (1) or (2) of subsection (b) in the 
                base year.
            ``(3) Special rule.--For any fiscal year for which a local 
        educational agency would be subject to a reduced payment under 
        subparagraph (B) or (C) of paragraph (2), but the total amount 
        of the payment that the local educational agency is eligible 
        for under subsection (b) for that fiscal year is greater than 
        the amount that initially subjected the local educational 
        agency to the requirements of this subsection, the Secretary 
        shall pay the greater amount to the local educational agency 
        for such year.'';
                    (B) by striking paragraph (2); and
                    (C) by redesignating paragraph (3) as paragraph 
                (2); and
            (5) by striking subsection (g).

SEC. 6. APPLICATION FOR PAYMENTS UNDER SECTIONS 8002 AND 8003.

    Section 8005 (20 U.S.C. 7705) is amended--
            (1) by redesignating subsections (c) and (d) as subsections 
        (d) and (e), respectively; and
            (2) by inserting after subsection (b) the following:
    ``(c) Student Count.--In collecting information to determine the 
eligibility of a local educational agency and the number of federally 
connected children for the local educational agency, the Secretary 
shall, in addition to any options provided under section 222.35 of 
title 34, Code of Federal Regulations, or a successor regulation, allow 
a local educational agency to count the number of such children served 
by the agency as of the date by which the agency requires all students 
to register for the school year of the fiscal year for which the 
application is filed.''.

SEC. 7. CONSTRUCTION.

    Section 8007 (20 U.S.C. 7707) is amended--
            (1) in subsection (a)--
                    (A) in paragraph (1)--
                            (i) by striking ``40 percent'' and 
                        inserting ``80 percent''; and
                            (ii) by striking ``8014(e)'' and inserting 
                        ``8014(d)'';
                    (B) in paragraph (2), by adding at the end the 
                following:
                    ``(C) The agency is eligible under section 
                8003(b)(2) or is receiving a basic support payment 
                under circumstances described in section 
                8003(b)(2)(B)(ii).''; and
                    (C) by striking paragraph (3) and inserting the 
                following:
            ``(3) Amount of payments.--
                    ``(A) Local educational agencies impacted by 
                military dependent children.--
                            ``(i) In general.--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)(aa) 40 percent of the amount 
                                appropriated under section 8014(d) for 
                                such fiscal year; divided by
                                    ``(bb) the number of children 
                                described in subparagraphs (B) and 
                                (D)(i) of section 8003(a)(1) who were 
                                in average daily attendance for all 
                                local educational agencies described in 
                                paragraph (2), including the number of 
                                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 fiscal year; multiplied 
                                by
                                    ``(II) the number of children 
                                determined for such agency.
                            ``(ii) Limitation.--Notwithstanding clause 
                        (i), the amount of a payment provided under 
                        this subparagraph shall be--
                                    ``(I) not less than $25,000, except 
                                that this subclause shall not apply if 
                                the amount available to carry out 
                                paragraph (1) for such fiscal year is 
                                less than $32,000,000; and
                                    ``(II) not more than $4,000,000.
                    ``(B) Local educational agencies impacted by 
                children who reside on indian lands.--
                            ``(i) In general.--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)(aa) 40 percent of the amount 
                                appropriated under section 8014(e) for 
                                such fiscal year; divided by
                                    ``(bb) the number of children 
                                described in section 8003(a)(1)(C) who 
                                were in average daily attendance for 
                                all local educational agencies 
                                described in paragraph (2); multiplied 
                                by
                                    ``(II) the number of children 
                                determined for such agency.
                            ``(ii) Limitation.--Notwithstanding clause 
                        (i), the amount of a payment provided under 
                        this subparagraph shall be--
                                    ``(I) not less than $25,000, except 
                                that this subclause shall not apply if 
                                the amount available to carry out 
                                paragraph (1) for such fiscal year is 
                                less than $32,000,000; and
                                    ``(II) not more than $4,000,000.''; 
                                and
            (2) in subsection (b)--
                    (A) in the matter preceding paragraph (1)--
                            (i) by striking ``60 percent'' and 
                        inserting ``20 percent''; and
                            (ii) by striking ``section 8014(e)'' and 
                        inserting ``section 8014(d)'';
                    (B) in paragraph (3)--
                            (i) in subparagraph (A), in the matter 
                        preceding clause (i), by inserting ``if the 
                        agency meets the requirements of paragraph (7), 
                        or'' after ``under paragraph (2)(A)'';
                            (ii) in subparagraph (C)(i)(I), by striking 
                        ``the agency meets at least one'' and all that 
                        follows through the period at the end of item 
                        (bb) and inserting ``the number of children 
                        determined under section 8003(a)(1)(C) for the 
                        agency for the preceding school year 
                        constituted at least 40 percent of the total 
                        student enrollment in the schools of the agency 
                        during the preceding school year.''; and
                            (iii) by striking subclause (II) of 
                        subparagraph (D)(ii) and inserting the 
                        following:
                                    ``(II) The number of children 
                                determined under section 8003(a)(1)(C) 
                                for the school for the preceding school 
                                year constituted at least 40 percent of 
                                the total student enrollment in the 
                                school during the preceding school 
                                year.'';
                    (C) in paragraph (4)(C), by striking ``(A), (B), 
                (C), and (D)'' and inserting ``(A) and (C)''; and
                    (D) by adding at the end the following:
            ``(7) Special rule.--
                    ``(A) In general.--Notwithstanding paragraphs 
                (3)(C)(i)(I) and (3)(D)(ii)(II), a local educational 
                agency or school is eligible to receive a grant under 
                this subsection in any one fiscal year if such agency 
                or school--
                            ``(i) was eligible to receive a payment 
                        under section 8003 for the fiscal year prior to 
                        the year for which the application is made; and
                            ``(ii) has had an overall increase in 
                        enrollment--
                                    ``(I) during the period between the 
                                end of the school year preceding the 
                                fiscal year for which the application 
                                is made and the beginning of the school 
                                year immediately preceding that school 
                                year;
                                    ``(II) of not less than 250 
                                students or 10 percent (whichever is 
                                lower), of children described in--
                                            ``(aa) subparagraph (A), 
                                        (B), (C), or (D) of section 
                                        8003(a)(1); or
                                            ``(bb) subparagraph (F) or 
                                        (G) of section 8003(a)(1), but 
                                        only to the extent such 
                                        children are civilian 
                                        dependents of employees of the 
                                        Department of Defense; and
                                    ``(III) that is the direct result 
                                of one or more of the following:
                                            ``(aa) Base realignment and 
                                        closure or global rebasing, as 
                                        determined by the Secretary of 
                                        Defense.
                                            ``(bb) Force structure 
                                        changes or force reductions.
                                            ``(cc) An action initiated 
                                        by the Secretary of the 
                                        Interior or head of another 
                                        Federal agency.
                    ``(B) Maximum amount.--A grant awarded to a local 
                educational agency or school described in subparagraph 
                (A) shall not exceed $4,000,000 for a fiscal year.''.

SEC. 8. STATE CONSIDERATION OF PAYMENTS IN PROVIDING STATE AID.

    Section 8009 (20 U.S.C. 7709) is amended--
            (1) in subsection (b)--
                    (A) in paragraph (1), by inserting before the 
                period at the end the following: ``and for which the 
                average per-pupil expenditure is equal to or greater 
                than the average per-pupil expenditure of all the 
                States in the third fiscal year preceding the fiscal 
                year for which the State is applying for equalization 
                under this section''; and
                    (B) by striking paragraph (2) and inserting the 
                following:
            ``(2) Computation.--
                    ``(A) State currently qualifying.--For purposes of 
                paragraph (1), a program of State aid for any State 
                qualifying under this section for fiscal year 2016 
                equalizes expenditures among local educational agencies 
                if, in the second fiscal year preceding the fiscal year 
                for which the determination is made the amount of per-
                pupil expenditures made by, or per-pupil revenues 
                available to, the local educational agency in the State 
                with the highest such per-pupil expenditures or 
                revenues did not exceed the amount of such per-pupil 
                expenditures made by, or per-pupil revenues available 
                to, the local educational agency in the State with the 
                lowest such expenditures or revenues by more than 25 
                percent as calculated under subparagraph (B)(ii).
                    ``(B) Other factors.--Notwithstanding regulations 
                in effect prior to the enactment of this subparagraph, 
                in making a determination under this subparagraph, the 
                Secretary shall--
                            ``(i) arrange all local educational 
                        agencies in the State by per-pupil expenditures 
                        or revenues in descending order from the 
                        highest to the lowest;
                            ``(ii) using per-pupil expenditures or 
                        revenues as the only criteria disregard those 
                        local educational agencies that are spending 
                        above the 95th percentile and those spending 
                        below the 5th percentile;
                            ``(iii) identify the local educational 
                        agency at the 95th percentile and the local 
                        educational agency at the 5th percentile;
                            ``(iv) subtract the amount of per-pupil 
                        expenditures or revenues of the local 
                        educational agency at the 5th percentile from 
                        the amount of per-pupil expenditures or 
                        revenues of the local educational agency at the 
                        95th percentile and divide the difference by 
                        the per-pupil expenditures or revenues of the 
                        local educational agency at the 5th percentile; 
                        and
                            ``(v) take into account the extent to which 
                        a program of State aid reflects the additional 
                        cost of providing free public education in 
                        particular types of local educational agencies 
                        such as those that are geographically isolated, 
                        or to particular types of students, such as 
                        children with disabilities.
                    ``(C) New states applicants.--
                            ``(i) In general.--For purposes of 
                        paragraph (1), a program of State aid for any 
                        State equalizing under this section after 
                        fiscal year 2006 equalizes expenditures among 
                        local educational agencies if, in the second 
                        fiscal year preceding the fiscal year for which 
                        the determination is made, the amount of per-
                        pupil expenditures made by, or per-pupil 
                        revenues available to, the local educational 
                        agency in the State with the highest such per-
                        pupil expenditures or revenues did not exceed 
                        the amount of such per-pupil expenditures made 
                        by, or per-pupil revenues available to, the 
                        local educational agency in the State with the 
                        lowest such expenditures or revenues by more 
                        than 10 percent as calculated under clause 
                        (ii).
                            ``(ii) Other factors.--In making a 
                        determination under this subparagraph, the 
                        Secretary, notwithstanding regulations in use 
                        prior to the enactment of the Local Taxpayer 
                        Relief Act, shall--
                                    ``(I) arrange all local educational 
                                agencies in the State by per-pupil 
                                expenditures or revenues in descending 
                                order from the highest to the lowest;
                                    ``(II) using per-pupil expenditures 
                                or revenues as the only criteria 
                                disregard those local educational 
                                agencies that are spending above the 
                                95th percentile and those spending 
                                below the 5th percentile;
                                    ``(III) identify the local 
                                educational agency at the 95th 
                                percentile and the local educational 
                                agency at the 5th percentile;
                                    ``(IV) subtract the amount of per-
                                pupil expenditures or revenues of the 
                                local educational agency at the 5th 
                                percentile from the amount of per-pupil 
                                expenditures or revenues of the local 
                                educational agency at the 95th 
                                percentile and divide the difference by 
                                the per-pupil expenditures or revenues 
                                of the local educational agency at the 
                                5th percentile; and
                                    ``(V) take into account the extent 
                                to which a program of State aid 
                                reflects the additional cost of 
                                providing free public education in 
                                particular types of local educational 
                                agencies, such as those that are 
                                geographically isolated, or to 
                                particular types of students, such as 
                                children with disabilities.''; and
            (2) in subsection (d)(2)--
                    (A) by striking ``A State'' and inserting the 
                following:
                    ``(A) In general.--A State''; and
                    (B) by adding at the end of the following:
                    ``(B) States that are not equalized states.--A 
                State that has not been approved as an equalized State 
                under subsection (b) shall not consider funds received 
                under section 8002 or section 8003 of this title in any 
                State formula or place a limit or direct the use of 
                such funds or consider such funds for purposes of 
                determining a local educational agency's fund 
                balance.''.

SEC. 9. TIMELY PAYMENTS.

    Section 8010 (20 U.S.C. 7710) is amended--
            (1) in subsection (b), by striking ``require'' and 
        inserting ``need''; and
            (2) in subsection (d)(1)--
                    (A) by striking ``the second fiscal year following 
                the fiscal year for'' and inserting ``the fiscal year 
                following the fiscal year in''; and
                    (B) by striking ``such local educational agency 
                submits'' and inserting ``each local educational agency 
                that is eligible to receive funds under this title for 
                such fiscal year submits''.

SEC. 10. DEFINITIONS.

    Section 8013 (20 U.S.C. 7713) is amended--
            (1) in paragraph (1), by striking ``and Marine Corps'' and 
        inserting ``Marine Corps, and Coast Guard'';
            (2) in paragraph (4)--
                    (A) in the first sentence, by striking ``part A of 
                title I and title VI'' and inserting ``title I and part 
                A of title V''; and
                    (B) in the second sentence, by striking ``be 
                determined'' and inserting ``be made'';
            (3) in paragraph (5)(A)--
                    (A) in clause (ii)--
                            (i) in subclause (IV), by striking ``; or'' 
                        and inserting a semicolon;
                            (ii) in subclause (V), by inserting ``or'' 
                        after the semicolon; and
                            (iii) by adding at the end the following:
                            ``(VI) exempt of taxation real property and 
                        personal property identified by a local 
                        governmental entity, including State 
                        government, if upon such property resides a 
                        child whose parents or guardians are certified 
                        to live on such property is considered to meet 
                        the eligibility requirements of section 151.4 
                        of title 25, Code of Federal Regulations;''; 
                        and
                    (B) in clause (iii)--
                            (i) by striking subclauses (II) and (III) 
                        and inserting the following:
                            ``(II) used to provide housing for homeless 
                        children at closed military installations 
                        pursuant to section 501 of the McKinney-Vento 
                        Homeless Assistance Act (42 U.S.C. 11411);
                            ``(III) used for affordable housing 
                        assisted under the Native American Housing 
                        Assistance and Self-Determination Act of 1996 
                        (25 U.S.C. 4101 et seq.); or'';
            (4) in paragraph (8)(A), by inserting commas before and 
        after ``and verified by''; and
            (5) in paragraph (9)--
                    (A) by striking subparagraph (A) and inserting the 
                following:
                    ``(A) In general.--Except as provided in 
                subparagraph (B), the term `local educational agency'--
                            ``(i) means a board of education or other 
                        legally constituted local school authority 
                        having administrative control and direction of 
                        free public education in a county, township, 
                        independent school district, or other school 
                        district; and
                            ``(ii) includes any State agency that--
                                    ``(I) directly operates and 
                                maintains facilities for providing free 
                                public education; and
                                    ``(II) except for those local 
                                educational agencies determined to be 
                                eligible to receive a payment under 
                                section 8003 prior to the date of the 
                                enactment of the Local Taxpayer Relief 
                                Act, when submitting an application 
                                under this title for the first time on 
                                or after the date of the enactment of 
                                such Act, has the authority to tax and 
                                has boundaries as defined by applicable 
                                State law for the purposes of levying 
                                such taxes, or has been granted the 
                                authority to receive an imputed tax 
                                from a city, county, township, or other 
                                general purpose political subdivision 
                                of a State.''; and
                    (B) in subparagraph (B), in the matter preceding 
                clause (i), by inserting a comma after ``Secretary 
                determines''.

SEC. 11. AUTHORIZATION OF APPROPRIATIONS.

    Section 8014 (20 U.S.C. 7714) is amended--
            (1) in subsection (a), by striking ``$32,000,000 for fiscal 
        year 2000 and such sums as may be necessary for each of the 
        seven succeeding fiscal years'' and inserting ``such sums as 
        may be necessary for each of fiscal years 2016 through 2019'';
            (2) in subsection (b), by striking ``$809,400,000 fiscal 
        year 2000 and such sums as may be necessary for each of the 
        seven succeeding fiscal years'' and inserting ``such sums as 
        may be necessary for each of fiscal years 2016 through 2019'';
            (3) in subsection (c), by striking ``$50,000,000 for fiscal 
        year 2000 and such sums as may be necessary for each of the 
        seven succeeding fiscal years'' and inserting ``such sums as 
        may be necessary for each of fiscal years 2016 through 2019'';
            (4) by redesignating subsections (e) and (f) as subsections 
        (d) and (e), respectively;
            (5) in subsection (d) (as redesignated by paragraph (4)), 
        by striking ``$10,052,000 for fiscal year 2000 and such sums as 
        may be necessary for fiscal year 2001, $150,000,000 for fiscal 
        year 2002, and such sums as may be necessary for each of the 
        five succeeding fiscal years'' and inserting ``such sums as may 
        be necessary for each of fiscal years 2016 through 2019'';
            (6) in subsection (e) (as redesignated by paragraph (4)), 
        by striking ``$5,000,000 for fiscal year 2000 and such sums as 
        may be necessary for each of the seven succeeding fiscal 
        years'' and inserting ``such sums as may be necessary for each 
        of fiscal years 2016 through 2019''; and
            (7) by adding at the end of the following:
    ``(f) Allocation of Dollars From Previous Fiscal Years.--When final 
payments are made under this title for a fiscal year, the Secretary 
shall add any remaining funds to those funds appropriated for such 
section for the next fiscal year for the purpose of making payments 
subject to the provisions of the applicable section.''.

SEC. 12. ADDITIONAL AND CONFORMING AMENDMENTS.

    (a) Consolidated Appropriations Act, 2014.--Section 309 of division 
H of the Consolidated Appropriations Act, 2014 (Public Law 113-76; 128 
Stat. 400) is repealed.
    (b) Elementary and Secondary Education Act of 1965.--The Act (20 
U.S.C. 6301 et seq.) is amended--
            (1) in the table of contents in section 2, by striking the 
        items relating to subpart 20 of part D of title V;
            (2) by repealing subpart 20 of part D of title V (20 U.S.C. 
        7281 et seq.) (relating to additional assistance for certain 
        local educational agencies impacted by Federal property 
        acquisition);
            (3) in section 8004 (20 U.S.C. 7704)--
                    (A) in subsection (e)(1)(B)(i), by striking 
                ``involved, or if'' and inserting ``involved or, if''; 
                and
                    (B) in subsection (f), by striking ``upon'' and 
                inserting ``on'';
            (4) in section 8008(a) (20 U.S.C. 7708(a)), by striking 
        ``section 8014(f)'' and inserting ``section 8014(e)''; and
            (5) in section 8011(a) (20 U.S.C. 7711 (a)), by striking 
        ``or under'' and all that follows through ``of 1994)''.
                                 <all>