SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Military Dependents Education Act of 
1993''.

SEC. 2. FUNDING RESPONSIBILITY FOR MILITARY CONNECTED CHILDREN.

    Title I of the Act of September 30, 1950 (Public Law 874, Eighty-
first Congress) is amended by adding at the end the following new 
section:

        ``funding responsibility for military connected children

    ``Sec. 8. (a) Computation of Amount.--
            ``(1) In general.--For the purpose of computing the amount 
        which a local educational agency is entitled to receive under 
        section 2, 3 or 4 for military connected children in each 
        fiscal year, the Secretary shall determine, for each local 
        educational agency receiving assistance under this Act, the 
        number of children referred to in--
                    ``(A) section 3(a) who reside on a military 
                installation;
                    ``(B) section 3(b)(1) who reside on a military 
                installation;
                    ``(C) section 3(b)(2) who have a parent employed on 
                a military installation; and
                    ``(D) section 3(b)(3).
            ``(2) Total amount of payments.--The Secretary shall 
        determine the total amount of payments all local educational 
        agencies are entitled to receive under section 2, 3 or 4 for 
        military connected children in each fiscal year.
    ``(b) Transfer of Funds.--From any amounts available to the 
Secretary of Defense, the Secretary of Defense shall transfer to the 
Secretary of Education in each fiscal year the total amount of funds 
necessary for the Secretary of Education to make all of the payments 
described in subsection (a)(2) for such fiscal year.
    ``(c) Special Rules.--Notwithstanding any other provision of law, 
funds made available by the Secretary of Defense to the Secretary of 
Education for military connected children pursuant to subsection (b) 
shall be--
            ``(1) the only funds used to make payments under section 2, 
        3 or 4 to local educational agencies for military connected 
        children; and
            ``(2) distributed to such local educational agencies in 
        accordance with the provisions of this Act which are not 
        inconsistent with--
                    ``(A) the provisions of this section; and
                    ``(B) shifting only the funding responsibility for 
                such military connected children from the Department of 
                Education to the Department of Defense.
    ``(d) Definitions.--For the purpose of this section--
            ``(1) the term `military connected children' means the 
        children described in subparagraphs (A) through (D) of 
        subsection (a)(1); and
            ``(2) the term `military installation' has the same meaning 
        given to such term in section 2801(c) of title 10, United 
        States Code.''.

SEC. 3. MILITARY CONNECTED CHILDREN WITH DISABILITIES.

    Subparagraph (C) of section 3(d)(2) of the Act of September 30, 
1950 (Public Law 874, Eighty-first Congress) is amended--
            (1) by redesignating clauses (ii), (iii) and (iv) as 
        clauses (iii), (iv) and (v), respectively;
            (2) in clause (i), by striking ``and children with specific 
        learning disabilities for whom a determination is made under 
        subsection (a)(2) or (b)(3)'';
            (3) by inserting after clause (i) the following new clause:
            ``(ii)(I) The amount of an entitlement of any local 
        educational agency under this section for any fiscal year with 
        respect to military connected children with disabilities and 
        for whom such local educational agency is providing a program 
        designed to meet the special and related needs of such children 
        shall be--
                    ``(aa) in the case of any local educational agency 
                with respect to which the number of such children is 
                determined under subsection (a), an amount equal to 100 
                percent of the average per pupil expenditure in the 
                State or such expenditure in the United States, 
                whichever is greater, multiplied by the number of such 
                children determined under such subsection plus the 
                product obtained with respect to such agency under 
                division (bb); and
                    ``(bb) in any other case, an amount equal to 25 
                percent of the average per pupil expenditure in the 
                State or such expenditure in the United States, 
                whichever is greater, multiplied by the number of such 
                children determined with respect to such agency for 
                such fiscal year under subsection (b).
            ``(II) For the purpose of this clause, the term `military 
        connected children with disabilities' means individuals who 
        are--
                    ``(aa) military connected children as such term is 
                defined in section 8(d)(1); and
                    ``(bb) children with disabilities.'';
            (4) in clause (iii) (as redesignated in paragraph (1)), by 
        striking ``division (iii)'' and inserting ``division (iv)''; 
        and
            (5) by amending clause (v) (as redesignated in paragraph 
        (1)) to read as follows:
                    ``(v) For the purpose of this subparagraph the term 
                `children with disabilities' means--
                            ``(I) children with disabilities as such 
                        term is defined in section 602(1) of the 
                        Individuals with Disabilities Education Act; 
                        and
                            ``(II) children with specific learning 
                        disabilities as such term is defined in section 
                        602(15) of such Act.''.
Military Dependents Education Act of 1993 - Amends Federal law for impact aid to local educational agencies to shift funding responsibility for militarily connected children (including those with disabilities) from the Department of Education to the Department of Defense.
Military Dependents Education Act of 1993