[Congressional Record Volume 141, Number 207 (Friday, December 22, 1995)]
[Senate]
[Pages S19285-S19286]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                    AMENDING THE IMPACT AID PROGRAM

  Mr. WARNER. Mr. President, I ask unanimous consent that the Senate 
proceed to the immediate consideration of S. 1509, a bill introduced 
earlier today by Senators Daschle and Pressler to permit local 
educational agencies to apply for increased impact aid payments, that 
the bill be deemed read the third time, passed, the motion to 
reconsider be laid upon the table; further, that any statements on this 
measure appear in the Record at the appropriate place as though read.
  The PRESIDING OFFICER. Without objection, it is so ordered.
  So the bill (S. 1509) was deemed read the third time, and passed, as 
follows:

                                S. 1509

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

     SECTION 1. HOLD-HARMLESS AMOUNTS FOR PAYMENTS RELATING TO 
                   FEDERAL ACQUISITION OF REAL PROPERTY.

       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 new subsections:
       ``(g) Former Districts.--
       ``(1) In general.--Where the school district of any local 
     educational agency described in paragraph (2) is formed at 
     any time after 1938 by the consolidation of two or more 
     former school districts, such agency may elect (at any time 
     such agency files an application under section 8005) for any 
     fiscal year to have (A) the eligibility of such local 
     educational agency, and (B) the amount which such agency 
     shall be eligible to receive, determined under this section 
     only with respect to such of the former school districts 
     comprising such consolidated school districts as such agency 
     shall designate in such election.
       ``(2) Eligible local educational agencies.--A local 
     educational agency referred to in paragraph (1) is any local 
     educational agency that, for fiscal year 1994 or any 
     preceding fiscal year, applied for and was determined 
     eligible under section 2(c) of the Act of September 30, 1950 
     (Public Law 874, 81st Congress) as such section was in effect 
     on September 30, 1994.
       ``(h) Hold-Harmless Amounts.--
       ``(1) In general.--Except as provided in paragraph (2)(A), 
     the total amount that the Secretary shall pay a local 
     educational agency under subsection (b)--
       ``(A) for fiscal year 1995 shall not be less than 85 
     percent of the amount such agency received for fiscal year 
     1994 under section 2 of the Act of September 30, 1950 (Public 
     Law 874, 81st Congress) as such section was in effect on 
     September 30, 1994; or
       ``(B) for fiscal year 1996 shall not be less than 85 
     percent of the amount such agency received for fiscal year 
     1995 under subsection (b).
     
[[Page S19286]]

       ``(2) Ratable reductions.--(A)(i) If necessary in order to 
     make payments to local educational agencies in accordance 
     with paragraph (1) for any fiscal year, the Secretary first 
     shall ratably reduce payments under subsection (b) for such 
     year to local educational agencies that do not receive a 
     payment under this subsection for such year.
       ``(ii) If additional funds become available for making 
     payments under subsection (b) for such year, then payments 
     that were reduced under clause (i) shall be increased on the 
     same basis as such payments were reduced.
       ``(B)(i) If the sums made available under this title for 
     any fiscal year are insufficient to pay the full amounts that 
     all local educational agencies in all States are eligible to 
     receive under paragraph (1) after the application of 
     subparagraph (A) for such year, then the Secretary shall 
     ratably reduce payments under paragraph (1) to all such 
     agencies for such year.
       ``(ii) If additional funds become available for making 
     payments under paragraph (1) for such fiscal year, then 
     payments that were reduced under clause (i) shall be 
     increased on the same basis as such payments were reduced.''.

     SEC. 2. APPLICATIONS FOR INCREASED PAYMENTS.

       (a) Payments.--Notwithstanding any other provision of law--
       (1) the Bonesteel-Fairfax School District Number 26-5, 
     South Dakota, and the Wagner Community School District Number 
     11-4, South Dakota, shall be eligible to apply for payment 
     for fiscal year 1994 under section 3(d)(2)(B) of the Act of 
     September 30, 1950 (Public Law 874, 81st Congress) (as such 
     action was in effect on September 30, 1994); and
       (2) the Secretary of Education shall use a subgroup of 10 
     or more generally comparable local educational agencies for 
     the purpose of calculating a payment described in paragraph 
     (1), and the local contribution rate applicable to such 
     payment, for a local educational agency described in such 
     paragraph.
       (b) Application.--In order to be eligible to receive a 
     payment described in subsection (a), a school district 
     described in such subsection shall apply for such payment 
     within 30 days after the date of enactment of this Act.
       (c) Construction.--Nothing in this section shall be 
     construed to require a local educational agency that received 
     a payment under section 3(d)(2)(B) of the Act of September 3, 
     1950 (Public Law 874, 81st Congress) (as such section was in 
     effect on September 30, 1994) for fiscal year 1994 to return 
     such payment or a portion of such payment to the Federal 
     Government.

     SEC. 3. MAXIMUM PAYMENTS.

       Subparagraph (B) of section 8003(f)(3) of the Elementary 
     and Secondary Education Act of 1965 (20 U.S.C. 7703(f)(3)) is 
     amended to read as follows:
       ``(B) Special rule.--The Secretary shall determine the 
     maximum amount that a local educational agency described in 
     clause (ii) or (iii) of paragraph (2)(A) may receive under 
     this subsection in accordance with the following 
     computations:
       ``(i) The Secretary shall multiply the average per-pupil 
     expenditure for all States by 0.7, except that such amount 
     may not exceed 125 percent of the average per-pupil 
     expenditure for all local educational agencies in the State.
       ``(ii) The Secretary shall next multiply the product 
     determined under clause (i) by the number of students who are 
     served by the local educational agency and described in 
     subparagraph (A) or (B) of subsection (a)(1).
       ``(iii) The Secretary shall next subtract the total amount 
     of payments received by the local educational agency under 
     subsections (b) and (d) for a fiscal year from the amount 
     determined under clause (ii).''.

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