I 

113TH CONGRESS 

1ST SESSION H. R. 2296 

To reauthorize the impact aid program under the Elementary and Secondary 

Education Act of 1965. 

IN THE HOUSE OF REPRESENTATIVES 

JUNE 6, 2013 

Mrs. NOEM (for herself and Mr. LARSEN of Washington) introduced the following bill; which was referred to the Committee on Education and the 

Workforce 

A BILL 

To reauthorize the impact aid program under the Elementary 

and Secondary Education Act of 1965. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Local Taxpayer Relief 

5 Act’’. 

6 SEC. 2. MAKING PERMANENT THE AMENDMENTS MADE BY 

7 THE IMPACT AID IMPROVEMENT ACT OF 2012. 

8 Subsection (c) of the Impact Aid Improvement Act 

9 of 2012 (20 U.S.C. 6301 note) is amended— 

10 (1) by striking paragraphs (1) and (4); and 


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1 (2) by redesignating paragraphs (2) and (3) as 

2 paragraphs (1) and (2), respectively. 

3 SEC. 3. PURPOSE. 

4 Section 8001 (20 U.S.C. 7701) is amended, in the 

5 matter preceding paragraph (1), by striking ‘‘challenging 

6 State standards’’ and inserting ‘‘college and career ready 

7 State academic content and student academic achievement 

8 standards under section 1111(a)(1)’’. 

9 SEC. 4. PAYMENTS RELATING TO FEDERAL ACQUISITION 

10 OF REAL PROPERTY. 

11 (a) AMENDMENTS.—Section 8002 of the Elementary 

12 and Secondary Education Act of 1965 (20 U.S.C. 7702) 

13 is amended— 

14 (1) in subsection (f), by striking paragraphs (4) 

15 and (5); 

16 (2) by striking subsection (g) and inserting the 

17 following: 

18 ‘‘(g) FORMER DISTRICTS.— 

19 ‘‘(1) CONSOLIDATIONS.—For fiscal year 2006 

20 and all succeeding fiscal years, if a local educational 

21 agency described in paragraph (2) is formed at any 

22 time after 1938 by the consolidation of 2 or more 

23 former school districts, the local educational agency 

24 may elect to have the Secretary determine its eligi25 bility and any amount for which the local eduVerDate Mar 15 2010 00:20 Jun 13, 2013 Jkt 029200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H2296.IH H2296

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1 cational agency is eligible under this section for any 

2 fiscal year on the basis of one or more of those 

3 former districts, as designated by the local edu4 cational agency. 

5 ‘‘(2) ELIGIBLE LOCAL EDUCATIONAL AGEN6 CIES.—A local educational agency referred to in 

7 paragraph (1) is— 

8 ‘‘(A) any local educational agency that, for 

9 fiscal year 1994 or any preceding fiscal year, 

10 applied, and was determined to be eligible 

11 under, section 2(c) of the Act of September 20, 

12 1950 (Public Law 874, 81st Congress), as that 

13 section was in effect for that fiscal year; or 

14 ‘‘(B) a local educational agency formed by 

15 the consolidation of 2 or more districts, at least 

16 1 of which was eligible for assistance under this 

17 section for the fiscal year preceding the year of 

18 the consolidation, if— 

19 ‘‘(i) for fiscal years 2006 through 

20 2013, the local educational had notified the 

21 Secretary of the designation not later than 

22 30 days after the date of enactment of the 

23 Local Taxpayer Relief Act; and 

24 ‘‘(ii) for fiscal year 2014 and any sub25 sequent fiscal year, the local educational 


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1 agency includes the designation in its ap2 plication under section 8005 or any timely 

3 amendment to such application. 

4 ‘‘(3) AVAILABILITY OF FUNDS.—Notwith5 standing any other provision of law limiting the pe6 riod during which the Secretary may obligate funds 

7 appropriated for any fiscal year after 2005, the Sec8 retary may obligate funds remaining after final pay9 ments have been made from any of such fiscal years 

10 to carry out this subsection.’’; 

11 (3) by striking subsections (k) and (m); and 

12 (4) by redesignating subsections (l) and (n) as 

13 subsections (j) and (k), respectively. 

14 (b) EFFECTIVE DATE.—Notwithstanding the date of 

15 enactment of this Act, the amendments made by this sec16 tion shall apply to applications submitted for fiscal year 

17 2010 and all succeeding fiscal years. 

18 SEC. 5. PAYMENTS FOR ELIGIBLE FEDERALLY CONNECTED 

19 CHILDREN. 

20 Section 8003 of that Act (20 U.S.C. 7703) is amend21 ed— 

22 (1) in subsection (a)— 

23 (A) in paragraph (1), in the matter pre24 ceding subparagraph (A), by inserting after 

25 ‘‘such agency,’’ the following: ‘‘including those 


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1 children enrolled in a State that has a State 

2 open enrollment policy (but not including those 

3 children enrolled in a distance learning program 

4 not residing within the defined boundaries of 

5 the agency),’’; and 

6 (B) in paragraph (5)(A), by striking ‘‘to 

7 be’’ and all the follows through ‘‘situated’’ and 

8 inserting the following: ‘‘or under lease of off9 base property under subchapter IV of chapter 

10 169 of title 10, United States Code, to be chil11 dren described under paragraph (1)(B) if the 

12 property described is within the fenced security 

13 perimeter of the military facility or attached to 

14 and under any type of force protection agree15 ment with the military installation upon which 

16 such housing is situated.’’; 

17 (2) in subsection (b)(2)— 

18 (A) in subparagraph (B)— 

19 (i) in the subparagraph heading by 

20 striking ‘‘CONTINUING’’; 

21 (ii) by amending clause (i) to read as 

22 follows: 

23 ‘‘(i) IN GENERAL.—A heavily im24 pacted local educational agency is eligible 

25 to receive a basic support payment under 


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1 subparagraph (A) with respect to a num2 ber of children determined under sub3 section (a)(1) if the agency— 

4 ‘‘(I) is a local educational agency 

5 whose boundaries are the same as a 

6 Federal military installation or the 

7 boundaries are the same as island 

8 property designated by the Secretary 

9 of the Interior to be property that is 

10 held in trust by the Federal Govern11 ment and the agency has no taxing 

12 authority; 

13 ‘‘(II) is a local educational agen14 cy— 

15 ‘‘(aa) that has an enrollment 

16 of children described in sub17 section (a)(1) that constitutes a 

18 percentage of the total student 

19 enrollment of the agency that is 

20 not less than 45 percent; 

21 ‘‘(bb) that has a per-pupil 

22 expenditure that is less than— 

23 ‘‘(AA) for an agency 

24 that has a total student en25 rollment of 500 or more stuVerDate Mar 15 2010 00:20 Jun 13, 2013 Jkt 029200 PO 00000 Frm 00006 Fmt 6652 Sfmt 6201 E:\BILLS\H2296.IH H2296

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1 dents, 125 percent of the av2 erage per-pupil expenditure 

3 of the State in which the 

4 agency is located; or 

5 ‘‘(BB) for an agency 

6 that has a total student en7 rollment of less than 500, 

8 150 percent of the average 

9 per-pupil expenditure of the 

10 State in which the agency is 

11 located, or the average per 

12 pupil expenditure of 3 or 

13 more comparable local edu14 cational agencies in the 

15 State in which the agency is 

16 located; and 

17 ‘‘(cc) that is an agency 

18 that— 

19 ‘‘(AA) has a tax rate 

20 for general fund purposes 

21 that is at least 95 percent of 

22 the average tax rate for gen23 eral fund purposes of com24 parable local educational 

25 agencies in the State; or 


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1 ‘‘(BB) was eligible to 

2 receive a payment under this 

3 subsection for fiscal year 

4 2013 and is located in a 

5 State that by State law has 

6 eliminated ad valorem tax as 

7 a revenue source for local 

8 educational agencies; 

9 ‘‘(III) is a local educational agen10 cy that has a total student enrollment 

11 of not less than 25,000 students, of 

12 which not less than 50 percent are 

13 children described in subsection (a)(1) 

14 and not less than 5,500 of such chil15 dren are children described in sub16 paragraphs (A) and (B) of subsection 

17 (a)(1); or 

18 ‘‘(IV) is a local educational agen19 cy that was eligible for and received a 

20 payment under this paragraph in fis21 cal year 2012 and— 

22 ‘‘(aa) has an enrollment of 

23 children described in subsection 

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1 ment of the agency that is not 

2 less than 20 percent; 

3 ‘‘(bb) for the 3 fiscal years 

4 preceding the fiscal year for 

5 which the determination is made, 

6 the average enrollment of chil7 dren who are not described in 

8 subsection (a)(1) and who are eli9 gible for a free or reduced price 

10 lunch under the Richard B. Rus11 sell National School Lunch Act 

12 constitutes a percentage of the 

13 total student enrollment of the 

14 agency that is not less than 65 

15 percent; and 

16 ‘‘(cc) has a tax rate for gen17 eral fund purposes which is not 

18 less than 1.25 percent of the av19 erage tax rate for general fund 

20 purposes for comparable local 

21 educational agencies in the 

22 State.’’; 

23 (iii) by amending clause (ii) to read as 

24 follows: 

25 ‘‘(ii) LOSS OF ELIGIBILITY.— 


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1 ‘‘(I) IN GENERAL.—Subject to 

2 subclause (II), a heavily impacted 

3 local educational agency that met the 

4 requirements of clause (i) for a fiscal 

5 year shall be ineligible to receive a 

6 basic support payment under subpara7 graph (A) if the agency fails to meet 

8 the requirements of clause (i) for a 

9 subsequent fiscal year, except that 

10 such agency shall continue to receive 

11 a basic support payment under this 

12 paragraph for the fiscal year for 

13 which the ineligibility determination is 

14 made. 

15 ‘‘(II) EXCEPTION.—For a local 

16 educational agency that is eligible 

17 under subparagraph (A) but whose 

18 tax rate for general fund purposes 

19 falls below 95 percent of the average 

20 tax rate for general fund purposes of 

21 local educational agencies in the State 

22 for two consecutive years shall lose its 

23 eligibility and be subject to subclause 

24 (I).’’; 


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1 (iv) by amending clause (iii) to read 

2 as follows: 

3 ‘‘(iii) APPLICATION.—With respect to 

4 the first year for which a heavily impacted 

5 local educational agency described in 

6 clause (i) applies for a basic support pay7 ment under subparagraph (A), or with re8 spect to the first fiscal year for which a 

9 heavily impacted local educational agency 

10 applies for a basic support payment under 

11 subparagraph (A) after becoming ineligible 

12 under clause (i) for 1 or more preceding 

13 fiscal years, the agency shall apply for 

14 such payment at least 1 year prior to the 

15 start of that fiscal year.’’; and 

16 (v) by adding at the end the following 

17 new clause: 

18 ‘‘(iv) SPECIAL RULE.—Notwith19 standing clause (i)(II), a local educational 

20 agency shall be considered eligible to re21 ceive a basic support payment under sub22 paragraph (A) with respect to the number 

23 of children determined under subsection 

24 (a)(1) if the agency— 


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1 ‘‘(I) has an enrollment of chil2 dren described in subsection (a)(1), 

3 including, for purposes of determining 

4 eligibility, those children described in 

5 subparagraphs (F) and (G) of such 

6 subsection, that constitutes a percent7 age of the total student enrollment of 

8 the agency that is not less than 35 

9 percent; and 

10 ‘‘(II) was eligible to receive as11 sistance under subsection (b)(2) for 

12 fiscal year 2001.’’; 

13 (B) by amending subparagraph (C) to read 

14 as follows: 

15 ‘‘(C) MAXIMUM AMOUNT FOR HEAVILY IM16 PACTED LOCAL EDUCATIONAL AGENCIES.— 

17 ‘‘(i) IN GENERAL.—The maximum 

18 amount that a heavily impacted local edu19 cational agency is eligible to receive under 

20 this paragraph for any fiscal year is the 

21 sum of the total weighted student units, as 

22 computed under subsection (a)(2) and sub23 ject to clause (ii), multiplied by the greater 

24 of— 


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1 ‘‘(I) four-fifths of the average 

2 per-pupil expenditure of the State in 

3 which the local educational agency is 

4 located for the third fiscal year pre5 ceding the fiscal year for which the 

6 determination is made; or 

7 ‘‘(II) four-fifths of the average 

8 per-pupil expenditure of all of the 

9 States for the third fiscal year pre10 ceding the fiscal year for which the 

11 determination is made. 

12 ‘‘(ii) SPECIAL RULE.—(I)(aa) For a 

13 local educational agency with respect to 

14 which 35 percent or more of the total stu15 dent enrollment of the schools of the agen16 cy are children described in subparagraph 

17 (D) or (E) (or a combination thereof) of 

18 subsection (a)(1), and has an enrollment of 

19 children described in subparagraph (A), 

20 (B), or (C) of such subsection equal to at 

21 least 10 percent of the agency’s total en22 rollment, the Secretary shall calculate the 

23 weighted student units of those children 

24 described in subparagraph (D) or (E) of 


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1 such subsection by multiplying the number 

2 of such children by a factor of 0.55. 

3 ‘‘(bb) For any local educational agen4 cy that received a payment under this 

5 clause in fiscal year 2012, the local edu6 cational agency shall not be required to 

7 have an enrollment of children described in 

8 subparagraph (A), (B), or (C) of such sub9 section equal to at least 10 percent of the 

10 agency’s total enrollment. 

11 ‘‘(II) For a local educational agency 

12 that has an enrollment of 100 or fewer 

13 children described in subsection (a)(1), the 

14 Secretary shall calculate the total number 

15 of weighted student units for purposes of 

16 subsection (a)(2) by multiplying the num17 ber of such children by a factor of 1.75. 

18 ‘‘(III) For a local educational agency 

19 that does not qualify under subparagraph 

20 (B)(i)(I) of this subsection and has an en21 rollment of more than 100 but not more 

22 than 1,000 children described in subsection 

23 (a)(1), the Secretary shall calculate the 

24 total number of weighted student units for 

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1 plying the number of such children by a 

2 factor of 1.25.’’; 

3 (C) by amending subparagraph (D) to read 

4 as follows: 

5 ‘‘(D) MAXIMUM AMOUNT FOR LARGE

6 HEAVILY IMPACTED LOCAL EDUCATIONAL

7 AGENCIES.—(i)(I) Subject to clause (ii), the 

8 maximum amount that a heavily impacted local 

9 educational agency described in subclause (II) 

10 is eligible to receive under this paragraph for 

11 any fiscal year shall be determined in accord12 ance with the formula described in paragraph 

13 (1)(C). 

14 ‘‘(II) A heavily impacted local educational 

15 agency described in this subclause is a local 

16 educational agency that has a total student en17 rollment of not less than 25,000 students, of 

18 which not less than 50 percent are children de19 scribed in subsection (a)(1) and not less than 

20 5,500 of such children are children described in 

21 subparagraphs (A) and (B) of subsection 

22 (a)(1). 

23 ‘‘(ii) For purposes of calculating the max24 imum amount described in clause (i), the factor 

25 used in determining the weighted student units 


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1 under subsection (a)(2) with respect to children 

2 described in subparagraphs (A) and (B) of sub3 section (a)(1) shall be 1.35.’’; 

4 (D) by striking subparagraph (E); 

5 (E) by redesignating subparagraph (F) as 

6 subparagraph (E); 

7 (F) in subparagraph (E) (as so redesig8 nated by subparagraph (G))— 

9 (i) by striking clause (ii); 

10 (ii) by striking ‘‘; and’’ at the end of 

11 clause (i) and inserting a period; and 

12 (iii) by striking ‘‘the Secretary’’ and 

13 all that follows through ‘‘shall use’’ and in14 serting ‘‘the Secretary shall use’’; 

15 (G) by redesignating subparagraph (G) as 

16 subparagraph (F); 

17 (H) in subparagraph (F) (as so redesig18 nated by subparagraph (I), in the matter pre19 ceding clause (i), by striking ‘‘(C)(i)(II)(bb)’’ 

20 and inserting ‘‘(B)(i)(II)(bb)(BB)’’; 

21 (I) by redesignating subparagraph (H) as 

22 subparagraph (G); and 

23 (J) in subparagraph (G) (as so redesig24 nated by subparagraph (K)— 

25 (i) in clause (i)— 


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1 (I) by striking ‘‘(B), (C), (D). or 

2 (E),’’ and inserting ‘‘(B), (C), or 

3 (D),’’; 

4 (II) by striking ‘‘by reason of’’ 

5 and inserting ‘‘due to’’; 

6 (III) by inserting after ‘‘clause 

7 (iii),’’ the following: ‘‘or as the direct 

8 result of base realignment and closure 

9 or modularization as determined by 

10 the Secretary of Defense and force 

11 structure change or force relocation,’’; 

12 and 

13 (IV) by inserting before the pe14 riod at the end the following: ‘‘or dur15 ing such time as activities associated 

16 with base closure and realignment, 

17 modularization, force structure 

18 change, or force relocation is ongo19 ing’’; and 

20 (ii) in clause (ii), by striking ‘‘(D) or 

21 (E)’’ in both places such term appears and 

22 inserting ‘‘(C) or (D)’’; 

23 (3) in subsection (b)(3)(B)— 

24 (A) by redesignating clause (iv) as clause 

25 (v); and 


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1 (B) by inserting after clause (iii) the fol2 lowing: 

3 ‘‘(iv) For any local educational agency 

4 that is providing a program of distant 

5 learning to children not residing within the 

6 legally defined boundaries of the agency, 

7 the Secretary shall disregard such children 

8 from such agency’s total enrollment when 

9 calculating the percentage under subclause 

10 (I) of clause (i) and shall disregard any 

11 funds received for such children when cal12 culating the total current expenditures at13 tributed to the operation of such agency 

14 when calculating the percentage under sub15 clause (II) of clause (i).’’; 

16 (4) in subsection (b)(3)(C), by striking ‘‘or (E) 

17 of paragraph (2), as the case may be’’ and inserting 

18 ‘‘of paragraph (2)’’; 

19 (5) by amending subsection (b)(3)(D) to read 

20 as follows: 

21 ‘‘(D) RATABLE DISTRIBUTION.—For any 

22 fiscal year described in subparagraph (A) for 

23 which the sums available exceed the amount re24 quired to pay each local educational agency 100 

25 percent of its threshold payment the Secretary 


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1 shall distribute the excess sums to each eligible 

2 local educational agency that has not received 

3 its full amount computed under paragraph (1) 

4 or (2) (as the case may be) by multiplying— 

5 ‘‘(i) a percentage, the denominator of 

6 which is the difference between the full 

7 amount computed under paragraph (1) or 

8 (2) (as the case may be) for all local edu9 cational agencies and the amount of the 

10 threshold payment as calculated under sub11 paragraphs (B) and (C) of all local edu12 cational agencies, and the numerator of 

13 which is the aggregate amount of the ex14 cess sums by— 

15 ‘‘(ii) the difference between the full 

16 amount computed under paragraph (1) or 

17 (2) (as the case may be) for the agency 

18 and the amount of the threshold payment 

19 as calculated under subparagraphs (B) and 

20 (C) of the agency.’’; 

21 (6) in subsection (c), by amending paragraph 

22 (2) to read as follows: 

23 ‘‘(2) EXCEPTION.—Calculation of payments for 

24 a local educational agency shall be based on data 


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1 from the fiscal year for which the agency is making 

2 an application for payment if such agency— 

3 ‘‘(A) is newly established by a State, for 

4 the first year of operation of such agency only; 

5 ‘‘(B) was eligible to receive a payment 

6 under this section for the previous fiscal year 

7 and has had an overall increase in enrollment 

8 (as determined by the Secretary in consultation 

9 with the Secretary of Defense, the Secretary of 

10 Interior or other Federal agencies)— 

11 ‘‘(i) of not less than 10 percent, or 

12 100 students, of children described in— 

13 ‘‘(I) subparagraph (A), (B), (C), 

14 or (D) of subsection (a)(1); or 

15 ‘‘(II) subparagraph (F) or (G) of 

16 subsection (a)(1), but only to the ex17 tent such children are civilian depend18 ents of employees of the Department 

19 of Defense or the Department of Inte20 rior; and 

21 ‘‘(ii) that is the direct result of closure 

22 or realignment of military installations 

23 under the base closure process or the relo24 cation of members of the Armed Forces 

25 and civilian employees of the Department 


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1 of Defense as part of force structure 

2 changes or movements of units or per3 sonnel between military installations or be4 cause of actions initiated by the Secretary 

5 of Interior or head of another Federal 

6 agency; and 

7 ‘‘(C) was eligible to receive a payment 

8 under this section for the previous fiscal year 

9 and has had an overall increase in enrollment 

10 (as determined by the Secretary)— 

11 ‘‘(i) of not less than 10 percent, or 

12 100 students, of children described in sub13 section (a)(1); and 

14 ‘‘(ii) that is the direct result of the 

15 closure of a local educational agency that 

16 received a payment under subsection (b)(1) 

17 or (b)(2) in the previous fiscal year.’’; 

18 (7) by amending subsection (e) to read as fol19 lows: 

20 ‘‘(e) HOLD HARMLESS.— 

21 ‘‘(1) IN GENERAL.—Subject to paragraph (2) 

22 the total amount the Secretary shall pay a local edu23 cation agency under subsection (b)— 

24 ‘‘(A) for fiscal year 2014 shall not be less 

25 than 95percent of the total amount that the 


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1 local educational agency received under sub2 section (b)(1), (b)(2) or (b)(2)(B)(ii) for fiscal 

3 year 2013; 

4 ‘‘(B) for fiscal year 2015 shall not be less 

5 than 90 percent of the total amount that the 

6 local educational agency received under sub7 section (b)(1), (b)(2) or (b)(2)(B)(ii) for fiscal 

8 year 2013; and 

9 ‘‘(C) for fiscal year 2016 shall not be less 

10 than 85 percent of the total amount that the 

11 local educational agency received under sub12 section (b)(1), (b)(2) or (b)(2)(B)(ii) for fiscal 

13 year 2013. 

14 ‘‘(2) MAXIMUM PAYMENT.—The total amount 

15 provided to a local educational agency under sub16 paragraph (A), (B), or (C) of paragraph (1) for a 

17 fiscal year shall not exceed the maximum basic sup18 port amount for such agency determined under 

19 paragraph (1) or (2) of subsection (b), as the case 

20 may be. 

21 ‘‘(3) RATABLE REDUCTION.— 

22 ‘‘(A) IN GENERAL.—If the sums made 

23 available under this title for any fiscal year are 

24 insufficient to pay the full amounts that all 

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1 ble to receive under paragraph (1) for such 

2 year, then the Secretary shall ratably reduce 

3 the payments to all such agencies for such year. 

4 ‘‘(B) ADDITIONAL FUNDS.—If additional 

5 funds become available for making payments 

6 under paragraph (1) for such fiscal year, pay7 ments that were reduced under subparagraph 

8 (A) shall be increased on the same basis as 

9 such payments were reduced.’’; and 

10 (8) by striking subsection (g). 

11 SEC. 6. APPLICATION FOR PAYMENTS UNDER SECTIONS 

12 8002 AND 8003. 

13 Section 8005 of that Act (20 U.S.C. 7705) is amend14 ed by adding at the end the following: 

15 ‘‘(e) STUDENT COUNT.—For the purpose of meeting 

16 the requirements of section 222.35 of the Code of the Fed17 eral Regulations, the Secretary shall establish a third op18 tion for an applicant when counting its federally connected 

19 children by using the date established by the applicant to 

20 register the students of such applicant for the fiscal year 

21 for which the application is filed.’’. 

22 SEC. 7. CONSTRUCTION. 

23 Section 8007 of that Act (20 U.S.C. 7707) is amend24 ed— 

25 (1) in subsection (a)— 


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1 (A) in paragraph (1), by striking ‘‘40 per2 cent’’ and inserting ‘‘80 percent’’; 

3 (B) in paragraph (2) by adding at the end 

4 the following: 

5 ‘‘(C) The agency is eligible under section 

6 8003(b)(2) or is receiving a basic support pay7 ment under circumstances described in section 

8 8003(b)(2)(B)(ii).’’; and 

9 (C) by striking paragraph (3) and insert10 ing the following: 

11 ‘‘(3) AMOUNT OF PAYMENTS.— 

12 ‘‘(A) LOCAL EDUCATION AGENCIES IM13 PACTED BY MILITARY DEPENDENT CHIL14 DREN.—The amount of a payment to each local 

15 educational agency described in this subsection 

16 that is impacted by military dependent children 

17 for a fiscal year shall be equal to— 

18 ‘‘(i)(I) 40 percent of the amount ap19 propriated under section 8014(e) for such 

20 fiscal year; divided by 

21 ‘‘(II) the number of children described 

22 in subparagraphs (B) and (D)(i) of section 

23 (8003)(a)(1) who were in average daily at24 tendance for all local educational agencies 

25 described in paragraph (2), including the 


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1 number of children attending a school fa2 cility described in section 8008(a) if the 

3 Secretary does not provide assistance for 

4 the school facility under that section for 

5 the fiscal year; multiplied by 

6 ‘‘(ii) the number of children deter7 mined for such agency; 

8 ‘‘(I) but not less than $25,000, 

9 except that this subparagraph shall 

10 not apply if the amount available to 

11 carry out paragraph (1) for such fis12 cal year is less than $32,000,000; and 

13 ‘‘(II) not more than $4,000,000. 

14 ‘‘(B) LOCAL EDUCATIONAL AGENCIES IM15 PACTED BY CHILDREN WHO RESIDE ON INDIAN

16 LANDS.—The amount of a payment to each 

17 local educational agency described in the sub18 section that is impacted by children who reside 

19 on Indian lands for a fiscal year shall be equal 

20 to— 

21 ‘‘(i)(I) 40 percent of the amount ap22 propriated under section 8014(e) for such 

23 fiscal year; divided by 

24 ‘‘(II) the number of children described 

25 in section 8003(a)(1)(C) who were in averVerDate Mar 15 2010 00:20 Jun 13, 2013 Jkt 029200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6201 E:\BILLS\H2296.IH H2296

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1 age daily attendance for all local edu2 cational agencies described in paragraph 

3 (2); multiplied by 

4 ‘‘(ii) the number of children deter5 mined for such agency; 

6 ‘‘(I) but not less than $25,000, 

7 except that this subparagraph shall 

8 not apply if the amount available to 

9 carry out paragraph (1) for such fis10 cal year is less than $32,000,000; and 

11 ‘‘(II) not more than $4,000, 

12 000.’’; and 

13 (2) in subsection (b)— 

14 (A) in paragraph (1), in the matter pre15 ceding subparagraph (A), by striking ‘‘60 per16 cent’’ and inserting ‘‘20 percent’’; 

17 (B) in paragraph (3)(A), in the matter 

18 preceding clause (i), by inserting after ‘‘an 

19 emergency grant under paragraph (2)(A)’’ the 

20 following: ‘‘if the agency is covered by para21 graph (7), or’’; 

22 (C) in paragraph (3)(C)(i)(I), by striking 

23 ‘‘the agency meets at least one’’ and all that 

24 follows through the period at the end and in25 serting ‘‘the number of children determined 


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1 under section 8003(a)(1)(C) for the agency for 

2 the preceding school year constituted at least 

3 40 percent of the total student enrollment in 

4 the schools of the agency during the preceding 

5 school year.’’; 

6 (D) by striking paragraph (3)(D)(ii)(II) 

7 and inserting the following: 

8 ‘‘(II) The number of children de9 termined under section 8003(a)(1)(C) 

10 for the school for the preceding school 

11 year constituted at least 40 percent of 

12 the total student enrollment in the 

13 school during the preceding school 

14 year.’’; 

15 (E) in paragraph (4)(C), by striking ‘‘(A), 

16 (B), (C), and (D)’’ and inserting ‘‘(A) and 

17 (C)’’; 

18 (F) by redesignating paragraph (7) as 

19 paragraph (8); and 

20 (G) by inserting after paragraph (6) the 

21 following: 

22 ‘‘(7) SPECIAL RULE.—Notwithstanding para23 graphs (3)(C)(i)(I) and (3)(D)(ii)(II), a local edu24 cational agency is eligible to receive a grant under 


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1 this subsection not to exceed $4,000,000 in any one 

2 fiscal year if such agency— 

3 ‘‘(A) was eligible to receive a payment 

4 under section 8003 for the fiscal year prior to 

5 the year for which the application is made; and 

6 ‘‘(B) has had an overall increase in enroll7 ment— 

8 ‘‘(i) during the period between the end 

9 of the school year preceding the fiscal year 

10 for which the application is made and the 

11 beginning of the school year immediately 

12 preceding that school year; 

13 ‘‘(ii) of not less than 250 students or 

14 10 percent (whichever is lower), are chil15 dren described in— 

16 ‘‘(I) subparagraph (A), (B), (C), 

17 or (D) of section 8003(a)(1); or 

18 ‘‘(II) subparagraph (F) or (G) of 

19 section 8003(a)(1), but only to the ex20 tent such children are civilian depend21 ents of employees of the Department 

22 of Defense; and 

23 ‘‘(iii) that is the direct result of one or 

24 more of the following: 


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1 ‘‘(I) Base realignment and clo2 sure or global rebasing, as determined 

3 by the Secretary of Defense. 

4 ‘‘(II) Force structure changes or 

5 force reductions. 

6 ‘‘(III) An action initiated by the 

7 Secretary of Interior or head of an8 other Federal agency.’’. 

9 SEC. 8. STATE CONSIDERATION OF PAYMENTS IN PRO10 VIDING STATE AID. 

11 Section 8009 of that Act (20 U.S.C. 7709) is amend12 ed— 

13 (1) in subsection (b)(1), by inserting before the 

14 period at the end the following: ‘‘and for which the 

15 average per pupil expenditure is equal to or greater 

16 than the average per pupil expenditure of all the 

17 States in the third fiscal year preceding the fiscal 

18 year for which the State is applying for equalization 

19 under the section’’; 

20 (2) by amending subsection (b)(2) to read as 

21 follows: 

22 ‘‘(2) COMPUTATION.— 

23 ‘‘(A) STATE CURRENTLY QUALIFYING.— 

24 ‘‘(i) IN GENERAL.—For purposes of 

25 paragraph (1), a program of State aid for 


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1 any State qualifying under this section for 

2 fiscal year 2006 equalizes expenditures 

3 among local educational agencies if, in the 

4 second fiscal year preceding the fiscal year 

5 for which the determination is made the 

6 amount of per-pupil expenditures made by, 

7 or per-pupil revenues available to, the local 

8 educational agency in the State with the 

9 highest such per-pupil expenditures or rev10 enues did not exceed the amount of such 

11 per-pupil expenditures made by, or per12 pupil revenues available to, the local edu13 cational agency in the State with the low14 est such expenditures or revenues by more 

15 than 25 percent as calculated under clause 

16 (ii). 

17 ‘‘(B) OTHER FACTORS.—Notwithstanding 

18 regulations in effect prior to the enactment of 

19 this subparagraph, in making a determination 

20 under this subparagraph, the Secretary shall— 

21 ‘‘(i) arrange all local educational 

22 agencies in the State by per-pupil expendi23 tures or revenues in descending order from 

24 the highest to the lowest; 


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1 ‘‘(ii) using per-pupil expenditures or 

2 revenues as the only criteria disregard 

3 those local educational agencies that are 

4 spending above the 95th percentile and 

5 those spending below the 5th percentile; 

6 ‘‘(iii) identify the local educational 

7 agency at the 95th percentile and the local 

8 educational agency at the 5th percentile; 

9 ‘‘(iv) subtract the amount of per-pupil 

10 expenditures or revenues of the local edu11 cational agency at the 5th percentile from 

12 the amount of per-pupil expenditures or 

13 revenues of the local educational agency at 

14 the 95th percentile and divide the dif15 ference by the per-pupil expenditures or 

16 revenues of the local educational agency at 

17 the 5th percentile; and 

18 ‘‘(v) take into account the extent to 

19 which a program of State aid reflects the 

20 additional cost of providing free public 

21 education in particular types of local edu22 cational agencies such as those that are 

23 geographically isolated, or to particular 

24 types of students, such as children with 

25 disabilities. 


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1 ‘‘(C) NEW STATES APPLICANTS.— 

2 ‘‘(i) IN GENERAL.—For purposes of 

3 paragraph (1), a program of State aid for 

4 any State equalizing under this section 

5 after fiscal year 2006 equalizes expendi6 tures among local educational agencies if, 

7 in the second fiscal year preceding the fis8 cal year for which the determination is 

9 made, the amount of per-pupil expendi10 tures made by, or per pupil revenues avail11 able to, the local educational agency in the 

12 State with the highest such per-pupil ex13 penditures or revenues did not exceed the 

14 amount of such per-pupil expenditures 

15 made by, or per-pupil revenues available 

16 to, the local educational agency in the 

17 State with the lowest such expenditures or 

18 revenues by more than 10 percent as cal19 culated under clause (ii). 

20 ‘‘(ii) OTHER FACTORS.—In making a 

21 determination under this subparagraph, 

22 the Secretary notwithstanding regulations 

23 in use prior to the enactment of this Act 

24 shall— 


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1 ‘‘(I) arrange all local educational 

2 agencies in the State by per pupil ex3 penditures or revenues in descending 

4 order from the highest to the lowest; 

5 ‘‘(II) using per-pupil expendi6 tures or revenues as the only criteria 

7 disregard those local educational 

8 agencies that are spending above the 

9 95th percentile and those spending 

10 below the 5th percentile; 

11 ‘‘(III) identify the local edu12 cational agency at the 95th percentile 

13 and the local educational agency at 

14 the 5th percentile; 

15 ‘‘(IV) subtract the amount of 

16 per-pupil expenditures or revenues of 

17 the local educational agency at the 

18 5th percentile from the amount of 

19 per-pupil expenditures or revenues of 

20 the local educational agency at the 

21 95th percentile and divide the dif22 ference by the per-pupil expenditures 

23 or revenues of the local educational 

24 agency at the 5th percentile; and 


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1 ‘‘(V) take into account the extent 

2 to which a program of State aid re3 flects the additional cost of providing 

4 free public education in particular 

5 types of local educational agencies, 

6 such as those that are geographically 

7 isolated, or to particular types of stu8 dents, such as children with disabil9 ities.’’; and 

10 (3) in subsection (d)(2)— 

11 (A) by striking ‘‘A State’’ and inserting 

12 the following: 

13 ‘‘(A) IN GENERAL.—A State’’; and 

14 (B) by adding at the end of the following: 

15 ‘‘(B) STATES THAT ARE NOT EQUALIZED

16 STATES.—A State that has not been approved 

17 as an equalized State under subsection (b) shall 

18 not consider funds received under section 8002 

19 or section 8003 of this title in any State for20 mula or place a limit or direct the use of such 

21 funds or consider such funds.’’. 

22 SEC. 9. DEFINITIONS. 

23 Section 8013 of that Act (20 U.S.C. 7713) is amend24 ed— 


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1 (1) in paragraph (1) by striking ‘‘and Marine 

2 Corps’’ and inserting ‘‘Marine Corps, and Coast 

3 Guard’’; 

4 (2) in paragraph (4)— 

5 (A) in the first sentence thereof, by strik6 ing ‘‘part (A) of title I and title VI’’ and insert7 ing ‘‘title I and part A of title V’’; and 

8 (B) in the second sentence, by striking ‘‘be 

9 determined’’ and inserting ‘‘be made’’; 

10 (3) in paragraph (5)(A)(iii)— 

11 (A) by amending subsclause (II) to read as 

12 follows: 

13 ‘‘(II) used to provide housing for 

14 homeless children at closed military 

15 installations pursuant to section 501 

16 of the McKinney-Vento Homeless As17 sistance Act (42 U.S.C. 11411);’’; and 

18 (B) by amending subclause (III) to read as 

19 follows: 

20 ‘‘(III) used for affordable hous21 ing assisted under the Native Amer22 ican Housing Assistance and Self-De23 termination Act of 1996 (25 U.S.C. 

24 4101 et.seq.); or’’; 


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1 (4) in paragraph (5)(A), by adding at the end 

2 the following: 

3 ‘‘(VI) exempt of taxation real 

4 property and personal property identi5 fied by a local governmental entity, in6 cluding State government, if upon 

7 such property resides a child whose 

8 parents or guardians are certified to 

9 live on such property is considered to 

10 meet the eligibility requirements of 

11 section 151.4 of part 150 of sub12 chapter H of title 25, Code of Federal 

13 Regulations; or’’; 

14 (5) in paragraph (8)(A), by inserting commas 

15 before and after ‘‘and verified by’’; and 

16 (6) in paragraph (9)— 

17 (A) by amending subparagraph (A) to read 

18 as follows: 

19 ‘‘(A) IN GENERAL.—Except as provided in 

20 subparagraph (C), the term ‘local educational 

21 agency’— 

22 ‘‘(i) means a board of education or 

23 other legally constituted local school au24 thority having administrative control and 

25 direction of free public education in a 


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1 county, township, independent school dis2 trict, or other school district; and 

3 ‘‘(ii) includes any State agency that 

4 directly operates and maintains facilities 

5 for providing free public education; that 

6 except for those local educational agencies 

7 determined to be eligible to receive a pay8 ment under section 8003 prior to the date 

9 of the enactment of the Local Taxpayer 

10 Relief Act, when submitting an application 

11 under this title for the first time on or 

12 after the date of the enactment of such 

13 Act, has the authority to tax and has 

14 boundaries as defined by applicable State 

15 law for the purposes of levying such taxes, 

16 or has been granted the authority to re17 ceive an imputed tax from a city, county, 

18 township, or other general purpose political 

19 subdivision of a State.’’; and 

20 (B) in subparagraph (B), by inserting a 

21 comma after ‘‘Secretary determines’’. 

22 SEC. 10. AUTHORIZATION OF APPROPRIATIONS. 

23 Section 8014 of that Act (20 U.S.C. 7714) is amend24 ed— 


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1 (1) in subsection (a) by striking ‘‘$32,000,000 

2 for fiscal year 2000’’ and inserting ‘‘$63,445,221 

3 fiscal year 2014’’; 

4 (2) in subsection (b) by striking ‘‘$809,400,000 

5 fiscal year 2000’’ and inserting ‘‘$1,093,203,000 for 

6 fiscal year 2014’’; 

7 (3) in subsection (c) by striking ‘‘$50,000,000 

8 for fiscal year 2000’’ and inserting ‘‘$45,880,825 for 

9 fiscal year 2014’’; 

10 (4) by redesignating subsection (e) as sub11 section (d); 

12 (5) in subsection (d) (as so redesignated by 

13 paragraph (4), by striking ‘‘$10,052,000’’ and all 

14 that follows through ‘‘and such sums’’ and inserting 

15 ‘‘$16,528,637 for fiscal year 2014’’; 

16 (6) by redesignating subsection (f) as sub17 section (e); 

18 (7) in subsection (e) (as so designated by para19 graph (6)), by striking ‘‘$5,000,000 for fiscal year 

20 2000’’ and inserting ‘‘$4,591,393 for fiscal year 

21 2014’’; and 

22 (8) by adding at the end of the following: 

23 ‘‘(f) ALLOCATION OF DOLLARS FROM PREVIOUS FIS24 CAL YEARS.—When final payments are made for a fiscal 

25 year the Secretary shall add any remaining funds to those 


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1 funds appropriated for such section for the next fiscal year 

2 for the purpose of making payments subject to the provi3 sions of the applicable section.’’. 

4 SEC. 11. ADDITIONAL AND CONFORMING AMENDMENTS. 

5 (a) SUBPART 20 OF PART D OF TITLE V.—Subpart 

6 15 (20 U.S.C. 7281 et seq.) of part D of title V of that 

7 Act (relating to additional assistance for certain local edu8 cational agencies impacted by Federal property acquisi9 tion) is repealed. 

10 (b) TITLE VIII.—Title VIII of Elementary and Sec11 ondary Education Act (20 U.S.C. 7701 et seq.) is further 

12 amended— 

13 (1) in section 8004 (20 U.S.C. 7704)— 

14 (A) in subsection (e)(1)(B)(i), by striking 

15 ‘‘involved, or if’’ and inserting ‘‘involved or, if’’; 

16 and 

17 (B) in subsection (f), by striking ‘‘upon’’ 

18 and inserting ‘‘on’’; 

19 (2) in section 8008(a) (20 U.S.C. 7708(a)), by 

20 striking ‘‘section 8014(f)’’ and inserting ‘‘section 

21 8014(e)’’; 

22 (3) in section 8010 (20 U.S.C. 7710)— 

23 (A) in subsection (b), by striking out ‘‘re24 quire’’ and inserting in lieu thereof ‘‘need’’; and 

25 (B) in subsection (c)(1)— 


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1 (i) in subparagraph (A), by striking 

2 ‘‘paragraph (3)’’ and inserting ‘‘paragraph 

3 (2)’’; and 

4 (ii) in subparagraph (B), by striking 

5 ‘‘paragraph (3)’’ and inserting ‘‘paragraph 

6 (2)’’; and 

7 (4) in section 8011(a) (20 U.S.C. 7711 (a)), by 

8 striking ‘‘or under’’ and all that follows through ‘‘of 

9 1994)’’. 

Æ 


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