[104th Congress Public Law 195]
[From the U.S. Government Printing Office]
<DOC>
[DOCID: f:publ195.104]
[[Page 110 STAT. 2379]]
Public Law 104-195
104th Congress
An Act
To amend the Impact Aid program to provide for a hold-harmless with
respect to amounts for payments relating to the Federal acquisition of
real property, and for other purposes. <<NOTE: Sept. 16, 1996 - [H.R.
3269]>>
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
after fiscal year 1994 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 for such fiscal
year.
``(h) Hold-Harmless Amounts.--
``(1) In general.--Except as provided in paragraph (2)(A),
the total amount that the Secretary shall pay under subsection
(b) to a local educational agency that is otherwise eligible for
a payment under this section--
``(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 110 STAT. 2380]]
``(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) <<NOTE: South Dakota.>> 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 section 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) 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 30, 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. PAYMENTS FOR ELIGIBLE FEDERALLY CONNECTED CHILDREN RESIDING ON
MILITARY INSTALLATION HOUSING UNDERGOING RENOVATION.
(a) In General.--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 new paragraph:
``(4) Military installation housing undergoing renovation.--
For purposes of computing the amount of a payment for a local
educational agency for children described in paragraph
(1)(D)(i), the Secretary shall consider such children to be
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 such children would have resided in housing on
Federal
[[Page 110 STAT. 2381]]
property in accordance with paragraph (1)(B) except that such
housing was undergoing renovation on the date for which the
Secretary determines the number of children under paragraph
(1).''.
(b) Effective <<NOTE: 20 USC 7703 note.>> Date.--Paragraph (4) of
section 8003(a) of the Elementary and Secondary Education Act of 1965,
as added by subsection (a), shall apply with respect to fiscal years
after fiscal year 1995.
SEC. 4. COMPUTATION OF PAYMENTS FOR ELIGIBLE FEDERALLY CONNECTED
CHILDREN IN STATES WITH ONLY ONE LOCAL EDUCATIONAL AGENCY.
(a) In General.--Section 8003(b) of the Elementary and Secondary
Education Act of 1965 (20 U.S.C. 7703(b)) is amended by adding at the
end the following new paragraph:
``(3) States with only one local educational agency.--
``(A) In general.--In any of the 50 States of the
United States in which there is only one local
educational agency, the Secretary shall, for purposes of
paragraphs (1)(B), (1)(C), and (2) of this subsection,
and subsection (e), consider each administrative school
district in the State to be a separate local educational
agency.
``(B) Computation of maximum amount of basic support
payment and threshold payment.--In computing the maximum
payment amount under paragraph (1)(C) and the learning
opportunity threshold payment under paragraph (2)(B) for
an administrative school district described in
subparagraph (A)--
``(i) the Secretary shall first determine the
maximum payment amount and the total current
expenditures for the State as a whole; and
``(ii) the Secretary shall then--
``(I) proportionately allocate such
maximum payment amount among the
administrative school districts on the
basis of the respective weighted student
units of such districts; and
``(II) proportionately allocate such
total current expenditures among the
administrative school districts on the
basis of the respective number of
students in average daily attendance at
such districts.''.
(b) Effective <<NOTE: 20 USC 7703 note.>> Date.--Paragraph (3) of
section 8003(b) of the Elementary and Secondary Education Act of 1965,
as added by subsection (a), shall apply with respect to fiscal years
after fiscal year 1994.
SEC. 5. DATA AND DETERMINATION OF AVAILABLE FUNDS.
(a) Data.--Paragraph (4) of section 8003(f) of the Elementary and
Secondary Education Act of 1965 (20 U.S.C. 7703(f)) is
amended--
(1) in the heading, by striking ``Current year'';
(2) by amending subparagraph (A) to read as follows:
``(A) shall use student, revenue, and tax data from
the second fiscal year preceding the fiscal year for
which the local educational agency is applying for
assistance under this subsection;''; and
[[Page 110 STAT. 2382]]
(3) in subparagraph (B), by striking ``such year'' and
inserting ``the fiscal year for which the local educational
agency is applying for assistance under this subsection''.
(b) Determination of Available Funds.--Paragraph (3) of section
8003(f) of the Elementary and Secondary Education Act of 1965 (20 U.S.C.
7703(f)) is amended--
(1) in the matter preceding subclause (I) of subparagraph
(A)(iii), by inserting ``, except as provided in subparagraph
(C),'' after ``but''; and
(2) by adding at the end the following new subparagraph:
``(C) Determination of available funds.--When
determining the amount of funds available to the local
educational agency for current expenditures for purposes
of subparagraph (A)(iii) for a fiscal year, the
Secretary shall include, with respect to the local
educational agency's opening cash balance for such
fiscal year, the portion of such balance that is the
greater of--
``(i) the amount that exceeds the maximum
amount of funds for current expenditures that the
local educational agency was allowed by State law
to carry over from the prior fiscal year, if State
restrictions on such amounts were applied
uniformly to all local educational agencies in the
State; or
``(ii) the amount that exceeds 30 percent of
the local educational agency's operating costs for
the prior fiscal year.''.
(c) Effective <<NOTE: 20 USC 7703 note.>> Date.--The amendments
made by subsections (a) and (b) shall apply with respect to fiscal years
after fiscal year 1996.
SEC. 6. PAYMENTS RELATING TO FEDERAL PROPERTY.
Section 8002 of the Elementary and Secondary Education Act of 1965
(20 U.S.C. 7702) (as amended by section 1) is further amended by adding
at the end thereof the following new subsection:
``(i) Priority Payments.--Notwithstanding subsection (b)(1)(B), and
for any fiscal year beginning with fiscal year 1997 for which the amount
appropriated to carry out this section exceeds the amount so
appropriated for fiscal year 1996, the Secretary shall first use such
excess amount 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 that--
``(1) received a payment under this section for fiscal year
1996;
``(2) serves a school district that contains all or a
portion of a United States military academy;
``(3) serves a school district in which the local tax
assessor has certified that at least 60 percent of the real
property is federally owned; and
``(4) demonstrates to the satisfaction of the Secretary that
such agency's per-pupil revenue derived from local sources for
current expenditures is not less than that revenue for the
preceding fiscal year.''.
SEC. 7. TREATMENT OF IMPACT AID PAYMENTS.
(a) In General.--The Secretary of Education shall treat any State as
having met the requirements of section 5(d)(2)(A) of the Act of
September 30, 1950 (Public Law 874, 81st Congress) for
[[Page 110 STAT. 2383]]
fiscal year 1991 (as such section was in effect for such fiscal year),
and as not having met those requirements for each of the fiscal years
1992, 1993, and 1994 (as such section was in effect for fiscal year
1992, 1993, and 1994, respectively), if--
(1) the State's program of State aid was not certified by
the Secretary under section 5(d)(2)(C)(i) of the Act of
September 30, 1950 (Public Law 874, 81st Congress) for any
fiscal year prior to fiscal year 1991;
(2) the State submitted timely notice under that section of
the State's intention to seek that certification for fiscal year
1991;
(3) the Secretary determined that the State did not meet the
requirements of section 5(d)(2)(A) of such Act for fiscal year
1991; and
(4) the State made a payment to each local educational
agency in the State (other than a local educational agency that
received a payment under section 3(d)(2)(B) of such Act for
fiscal year 1991) in an amount equal to the difference between
the amount such agency received under such Act for fiscal year
1991 and the amount such agency would have received under such
Act for fiscal year 1991 if payments under such Act had not been
taken into consideration in awarding State aid to such agencies
for fiscal year 1991.
(b) Repayment Not Required.--Notwithstanding any other provision of
law, any local educational agency in a State that meets the requirements
of paragraphs (1) through (4) of subsection (a) and that received funds
under section 3(d)(2)(B) of the Act of September 30, 1950 (Public Law
874, 81st Congress) for fiscal year 1991 (as such section was in effect
for such fiscal year) shall not, by virtue of subsection (a), be
required to repay those funds to the Secretary of Education.
SEC. 8. SPECIAL RULE RELATING TO AVAILABILITY OF FUNDS FOR THE LOCAL
EDUCATIONAL AGENCY SERVING THE NORTH HANOVER TOWNSHIP PUBLIC
SCHOOLS, NEW JERSEY, UNDER PUBLIC LAW 874, 81ST CONGRESS.
The Secretary of Education shall not consider any funds that the
Secretary of Education determines the local educational agency serving
the North Hanover Township Public Schools, New Jersey, has designated
for a future liability under an early retirement incentive program as
funds available to such local educational agency for purposes of
determining the eligibility of such local educational agency for a
payment for fiscal year 1994, or the amount of any such payment, under
section 3(d)(2)(B) of the Act of September 30, 1950 (Public Law 874,
81st Congress), as such section was in effect for such fiscal year.
SEC. 9. CORRECTED LOCAL CONTRIBUTION RATE.
(a) Computation.--The Secretary of Education shall compute a payment
for a local educational agency under the Act of September 30, 1950
(Public Law 874, 81st Congress) for each of the fiscal years 1991
through 1994 (as such Act was in effect for each of those fiscal years,
as the case may be) using a corrected local contribution rate based on
generally comparable school districts, if--
(1) an incorrect local contribution rate was submitted to
the Secretary of Education by the State in which such agency
[[Page 110 STAT. 2384]]
is located, and the incorrect local contribution rate was
verified as correct by the Secretary of Education; and
(2) the corrected local contribution rate is subject to
review by the Secretary of Education.
(b) Payment.--Using funds appropriated under the Act of September
30, 1950 (Public Law 874, 81st Congress) for fiscal years 1991 through
1994 that remain available for obligation (if any), the Secretary of
Education shall make payments based on the computations described in
subsection (a) to the local educational agency for such fiscal years.
SEC. 10. STATE EQUALIZATION PLANS.
Subparagraph (A) of section 8009(b)(2) of the Elementary and
Secondary Education Act of 1965 (20 U.S.C. 7709(b)(2)) is amended by
striking ``more than'' and all that follows through the period and
inserting ``more than 25 percent.''.
Approved September 16, 1996.
LEGISLATIVE HISTORY--H.R. 3269 (S. 1509):
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HOUSE REPORTS: No. 104-560 (Comm. on Economic and Educational
Opportunities).
CONGRESSIONAL RECORD:
Vol. 141 (1995):
Dec. 22, S. 1509 considered and
passed Senate.
Vol. 142 (1996):
May 7, H.R. 3269 considered and
passed House.
Aug. 2, considered and passed
Senate, amended.
Sept. 4, House concurred in Senate
amendment.
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