A bill to amend the impact aid program under the Elementary and Secondary Education Act of 1965 to improve the delivery of payments under the program to local educational agencies.

Summary: Amends the Elementary and Secondary Education Act of 1965 to entitle certain local educational agencies (LEAs) to receive specified Federal payment amounts under Impact Aid programs: (1) relating to Federal acquisition of real property; and (2) for basic support for eligible federally-connected children. (Current law makes such LEAs eligible for such payments up to specified maximum amounts.)Extends the authorization of appropriations for: (1) construction and school modernization payments for certain LEAs, including ones with high percentages of children living on Indian lands or children of military parents; and (2) facilities maintenance payments for certain schools located on military bases and serving military dependent children.Makes appropriations for payments in each fiscal year to LEAs under Impact Aid programs: (1) relating to Federal acquisition of real property; and (2) for basic support for eligible federally-connected children. Declares that provisions relating to payments for such programs constitute budget authority in advance of appropriations and represent the Federal obligation to pay such amounts to LEAs.

SECTION 1. AMENDMENTS TO IMPACT AID PROGRAM.

    (a) 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--
            (1) in subsection (a), by striking ``shall be eligible'' 
        and inserting ``is entitled''; and
            (2) by striking subsections (h) and (i).
    (b) Payments for Eligible Federally Connected Children.--
            (1) Computation of payment.--Section 8003(a)(1) of the 
        Elementary and Secondary Education Act of 1965 (20 U.S.C. 
        7703(a)(1)) is amended by striking ``is eligible'' and 
        inserting ``is entitled''.
            (2) Basic support payments and payments with respect to 
        fiscal years in which insufficient funds are appropriated.--
        Section 8003(b) of the Elementary and Secondary Education Act 
        of 1965 (20 U.S.C. 7703(b)) is amended--
                    (A) in the heading, by striking ``and Payments With 
                Respect to Fiscal Years in Which Insufficient Funds Are 
                Appropriated'';
                    (B) in paragraph (1)--
                            (i) in subparagraph (A), by striking ``From 
                        the amount appropriated under section 8014(b) 
                        for a fiscal year, the Secretary is authorized 
                        to'' and inserting ``The Secretary shall'';
                            (ii) in subparagraph (B)--
                                    (I) in the heading, by striking 
                                ``Eligibility'' and inserting 
                                ``Entitlement''; and
                                    (II) by striking ``is eligible'' 
                                and inserting ``is entitled''; and
                            (iii) in subparagraph (C)--
                                    (I) in the heading, by striking 
                                ``Maximum amount'' and inserting 
                                ``Amount'';
                                    (II) by striking ``maximum amount'' 
                                and inserting ``amount''; and
                                    (III) by striking ``is eligible'' 
                                and inserting ``is entitled'';
                    (C) in paragraph (2)--
                            (i) in subparagraph (A)--
                                    (I) in clause (i), by striking 
                                ``From the amount appropriated under 
                                section 8014(b) for a fiscal year, the 
                                Secretary is authorized to'' and 
                                inserting ``The Secretary shall''; and
                                    (II) in clause (ii), by striking 
                                ``eligible'' and inserting 
                                ``entitled'';
                            (ii) in subparagraph (B)--
                                    (I) in the heading, by striking 
                                ``Eligibility'' and inserting 
                                ``Entitlement'';
                                    (II) in clause (i), by striking 
                                ``is eligible'' and inserting ``is 
                                entitled'';
                                    (III) in clause (ii)--
                                            (aa) in the heading, by 
                                        striking ``eligibility'' and 
                                        inserting ``entitlement'';
                                            (bb) by striking ``shall be 
                                        ineligible'' and inserting 
                                        ``shall not be entitled''; and
                                            (cc) by striking 
                                        ``ineligibility'' and inserting 
                                        ``nonentitlement''; and
                                    (IV) in clause (iii)--
                                            (aa) in the heading, by 
                                        striking ``eligibility'' and 
                                        inserting ``entitlement'';
                                            (bb) by striking ``becomes 
                                        ineligible'' and inserting ``is 
                                        not entitled''; and
                                            (cc) by striking 
                                        ``eligibility'' each place it 
                                        appears and inserting 
                                        ``entitlement'';
                            (iii) in subparagraph (C)--
                                    (I) in the heading, by striking 
                                ``Eligibility'' and inserting 
                                ``Entitlement'';
                                    (II) in clause (i), by striking 
                                ``is eligible'' and inserting ``is 
                                entitled'';
                                    (III) in clause (ii)--
                                            (aa) in the heading, by 
                                        striking ``eligibility'' and 
                                        inserting ``entitlement''; and
                                            (bb) by striking ``becomes 
                                        ineligible'' and inserting ``is 
                                        not entitled''; and
                                    (IV) in clause (iii), by striking 
                                ``becoming ineligible'' and inserting 
                                ``losing entitlement status'';
                            (iv) in subparagraph (D)--
                                    (I) in the heading, by striking 
                                ``Maximum amount'' and inserting 
                                ``Amount''; and
                                    (II) in clause (i)--
                                            (aa) by striking ``maximum 
                                        amount'' and inserting 
                                        ``amount''; and
                                            (bb) by striking ``is 
                                        eligible'' and inserting ``is 
                                        entitled''; and
                            (v) in subparagraph (E)--
                                    (I) in the heading, by striking 
                                ``Maximum amount'' and inserting 
                                ``Amount''; and
                                    (II) in clause (i)(I)--
                                            (aa) by striking ``maximum 
                                        amount'' and inserting 
                                        ``amount''; and
                                            (bb) by striking ``is 
                                        eligible'' and inserting ``is 
                                        entitled'';
                    (D) by striking paragraph (3); and
                    (E) in paragraph (4)--
                            (i) in subparagraph (A), by striking 
                        ``paragraph (3)''; and
                            (ii) in subparagraph (B)--
                                    (I) in the heading--
                                            (aa) by striking ``maximum 
                                        amount'' and inserting 
                                        ``amount''; and
                                            (bb) by striking ``and 
                                        threshold payment'';
                                    (II) by striking ``maximum'' each 
                                place it appears; and
                                    (III) by striking ``and the 
                                learning opportunity threshold payment 
                                under subparagraph (B) or (C) of 
                                paragraph (3), as the case may be,''.
    (c) Policies and Procedures Relating to Children Residing on Indian 
Lands.--Section 8004(e)(8) of the Elementary and Secondary Education 
Act of 1965 (20 U.S.C. 7704(e)(8)) is amended by striking ``is 
eligible'' and inserting ``is entitled''.
    (d) Application for Payments Under Sections 8002 and 8003.--Section 
8005(b)(1) of the Elementary and Secondary Education Act of 1965 (20 
U.S.C. 7705(b)(1)) is amended by striking ``eligibility'' and inserting 
``entitlement''.
    (e) Construction.--Section 8007 of the Elementary and Secondary 
Education Act of 1965 (20 U.S.C. 7707) is amended--
            (1) in subsection (a)--
                    (A) in paragraph (1), by striking ``section 
                8014(e)'' and inserting ``subsection (c)''; and
                    (B) in paragraph (3), by striking ``section 
                8014(e)'' each place it appears and inserting 
                ``subsection (c)'';
            (2) in subsection (b)(1), by striking ``section 8014(e)'' 
        and inserting ``subsection (c)''; and
            (3) by adding at the end the following:
    ``(c) Authorization of Appropriations.--There are authorized to be 
appropriated to carry out this section such sums as may be necessary 
for each of the fiscal years 2004 through 2009.''.
    (f) Facilities.--Section 8008 of the Elementary and Secondary 
Education Act of 1965 (20 U.S.C. 7708) is amended--
            (1) in subsection (a), by striking ``section 8014(f)'' and 
        inserting ``subsection (c)''; and
            (2) by adding at the end the following:
    ``(c) Authorization of Appropriations.--There are authorized to be 
appropriated to carry out this section such sums as may be necessary 
for each of the fiscal years 2004 through 2009.''.
    (g) Authorization of Appropriations.--Section 8014 of the 
Elementary and Secondary Education Act of 1965 (20 U.S.C. 7714) is 
amended to read as follows:

``SEC. 8014. APPROPRIATIONS AND RULE OF CONSTRUCTION.

    ``(a) Appropriation.--For the purpose of making payments to local 
educational agencies under sections 8002 and 8003 for each fiscal year, 
there is appropriated, out of any money in the Treasury not otherwise 
appropriated, such sums as may be necessary to make such payments in 
each such fiscal year.
    ``(b) Entitlement.--The provisions of this title relating to 
payments under sections 8002 and 8003 shall constitute budget authority 
in advance of appropriations Acts and represents the obligation of the 
Federal Government to provide for the payment to local educational 
agencies of amounts provided for under such sections.
    ``(c) Rule of Construction.--Nothing in this title shall be 
interpreted to entitle any individual to assistance under any program, 
project, or activity of a local educational agency, State agency, or 
other governmental entity funded under this title.''.

SEC. 2. EFFECTIVE DATE.

    The amendments made by this Act shall take effect on October 1, 
2003, or the date of enactment of this Act, whichever occurs later.