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[Congressional Bills 113th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2378 Introduced in House (IH)]

113th CONGRESS
  1st Session
                                H. R. 2378

    To reauthorize the Impact Aid Program under the Elementary and 
                    Secondary Education Act of 1965.

_______________________________________________________________________

                    IN THE HOUSE OF REPRESENTATIVES

                             June 14, 2013

Mr. Mullin (for himself, Mr. Bucshon, and Mr. O'Rourke) 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.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Impact Aid Fairness and Equity Act 
of 2013''.

SEC. 2. AMENDMENTS TO THE IMPACT AID IMPROVEMENT ACT OF 2012.

    Section 563(c) of the National Defense Authorization Act for Fiscal 
Year 2013 (Public Law 112-239; 126 Stat. 1748) is amended--
            (1) in paragraphs (1), by inserting ``paragraphs (2) and 
        (3) of'' before ``subsection (b)''; and
            (2) in paragraph (4), by inserting ``paragraphs (2) and (3) 
        of'' before ``subsection (b)''.

SEC. 3. AMENDMENTS TO SECTION 8002 (PAYMENTS RELATING TO FEDERAL 
              ACQUISITION OF REAL PROPERTY) OF THE ESEA.

    Section 8002(a) of the Elementary and Secondary Education Act of 
1965 (20 U.S.C. 7702) is amended--
            (1) in paragraph (1), by amending subparagraph (C) to read 
        as follows:
                    ``(C) had an assessed value (according to original 
                records (including reproductions of those records) 
                documenting the assessed value of such property 
                (determined as of the time or times when so acquired) 
                prepared by the local official referred to in 
                subsection (b)(3) or, when such original records are 
                not available due to unintentional destruction (such as 
                natural disaster, fire, flooding, pest infestation, or 
                deterioration due to age), other records, including 
                Federal agency records, local historical records, or 
                other records that the Secretary determines to be 
                appropriate and reliable) aggregating 10 percent or 
                more of the assessed value of--
                            ``(i) all real property in the local 
                        educational agency (similarly determined as of 
                        the time or times when such Federal property 
                        was so acquired); or
                            ``(ii) all real property in the local 
                        educational agency as assessed in the first 
                        year preceding or succeeding acquisition, 
                        whichever is greater, only if--
                                    ``(I) the assessment of all real 
                                property in the local educational 
                                agency is not made at the same time or 
                                times that such Federal property was so 
                                acquired and assessed; and
                                    ``(II) State law requires an 
                                assessment be made of property so 
                                acquired; and''; and
            (2) by amending paragraph (2) to read as follows:
            ``(2) that such agency is not being substantially 
        compensated for the loss in revenue resulting from such 
        ownership by increases in revenue accruing to the agency from 
        the conduct of Federal activities with respect to such Federal 
        property, then such agency shall be eligible to receive the 
        amount described in subsection (b).''.

SEC. 4. AMENDMENTS TO SECTION 8003 (PAYMENTS FOR ELIGIBLE FEDERALLY 
              CONNECTED CHILDREN) OF THE ESEA.

    Section 8003 of the Elementary and Secondary Education Act of 1965 
(20 U.S.C. 7703) is amended--
            (1) in subsection (a)--
                    (A) in paragraph (1), in the matter preceding 
                subparagraph (A), by inserting after ``such agency,'' 
                the following: ``including those children enrolled in a 
                State that has a State open enrollment policy (but not 
                including children enrolled in a distance learning 
                program not residing within the defined boundaries of 
                the agency),'';
            (2) subsection (b)(2)--
                    (A) in subparagraph (B)--
                            (i) in the subparagraph heading, by 
                        striking ``continuing'';
                            (ii) by amending clause (i) to read as 
                        follows:
                            ``(i) In general.--A heavily impacted local 
                        educational agency is eligible to receive a 
                        basic support payment under subparagraph (A) 
                        with respect to a number of children determined 
                        under subsection (a)(1) if the agency--
                                    ``(I) is a local educational agency 
                                whose boundaries are the same as a 
                                Federal military installation or the 
                                boundaries are the same as island 
                                property designated by the Secretary of 
                                the Interior to be property that is 
                                held in trust by the Federal Government 
                                and the agency has no taxing authority;
                                    ``(II) is a local educational 
                                agency--
                                            ``(aa) that has an 
                                        enrollment of children 
                                        described in subsection (a)(1) 
                                        that constitutes a percentage 
                                        of the total student enrollment 
                                        of the agency that is not less 
                                        than 45 percent;
                                            ``(bb) that has a per-pupil 
                                        expenditure that is less than--

                                                    ``(AA) for an 
                                                agency that has a total 
                                                student enrollment of 
                                                500 or more students, 
                                                125 percent of the 
                                                average per-pupil 
                                                expenditure of the 
                                                State in which the 
                                                agency is located; or

                                                    ``(BB) for an 
                                                agency that has a total 
                                                student enrollment of 
                                                less than 500, 150 
                                                percent of the average 
                                                per-pupil expenditure 
                                                of the State in which 
                                                the agency is located, 
                                                or the average per-
                                                pupil expenditure of 3 
                                                or more comparable 
                                                local educational 
                                                agencies in the State 
                                                in which the agency is 
                                                located; and

                                            ``(cc) that is an agency 
                                        that--

                                                    ``(AA) has a tax 
                                                rate for general fund 
                                                purposes that is at 
                                                least 95 percent of the 
                                                average tax rate for 
                                                general fund purposes 
                                                of comparable local 
                                                educational agencies in 
                                                the State; or

                                                    ``(BB) was eligible 
                                                to receive a payment 
                                                under this subsection 
                                                for fiscal year 2008 
                                                and is located in a 
                                                State that by State law 
                                                has eliminated ad 
                                                valorem tax as a 
                                                revenue source for 
                                                local educational 
                                                agencies;

                                    ``(III) is a local educational 
                                agency that has a total student 
                                enrollment of not less than 25,000 
                                students, of which not less than 50 
                                percent are children described in 
                                subsection (a)(1) and not less than 
                                5,500 of such children are children 
                                described in subparagraphs (A) and (B) 
                                of subsection (a)(1); or
                                    ``(IV) is a local educational 
                                agency that--
                                            ``(aa) has an enrollment of 
                                        children described in 
                                        subsection (a)(1) that 
                                        constitutes a percentage of the 
                                        total student enrollment of the 
                                        agency that is not less than 20 
                                        percent;
                                            ``(bb) for the 3 fiscal 
                                        years preceding the fiscal year 
                                        for which the determination is 
                                        made, the average enrollment of 
                                        children who are not described 
                                        in subsection (a)(1) and who 
                                        are eligible for a free or 
                                        reduced price lunch under the 
                                        Richard B. Russell National 
                                        School Lunch Act constitutes a 
                                        percentage of the total student 
                                        enrollment of the agency that 
                                        is not less than 65 percent; 
                                        and
                                            ``(cc) has a tax rate for 
                                        general fund purposes which is 
                                        not less than 1.25 percent of 
                                        the average tax rate for 
                                        general fund purposes for 
                                        comparable local educational 
                                        agencies in the State.''; and
                            (iii) by amending clause (ii) to read as 
                        follows:
                            ``(ii) Loss of eligibility.--
                                    ``(I) In general.--Subject to 
                                subclause (II), a heavily impacted 
                                local education agency that met the 
                                requirements of clause (i) for a fiscal 
                                year shall be ineligible to receive a 
                                basic support payment under 
                                subparagraph (A) if the agency fails to 
                                meet the requirements of clause (i) for 
                                a subsequent fiscal year, except that 
                                such agency shall continue to receive a 
                                basic support payment under this 
                                paragraph for the fiscal year for which 
                                the ineligibility determination is 
                                made.
                                    ``(II) Exception.--For a local 
                                educational agency that is eligible 
                                under subparagraph (A) but whose tax 
                                rate for general fund purposes falls 
                                below 95 percent of the average tax 
                                rate for general fund purposes of local 
                                educational agencies in the State for 
                                two consecutive years shall lose its 
                                eligibility and be subject to subclause 
                                (I).''; and
                            (iv) by adding at the end, the following:
                            ``(iv) Special rule.--Notwithstanding 
                        clause (i)(II), a local educational agency 
                        shall be considered eligible to receive a basic 
                        support payment under subparagraph (A) with 
                        respect to the number of children determined 
                        under subsection (a)(1) if the agency--
                                    ``(I) has an enrollment of children 
                                described in subsection (a)(1), 
                                including, for purposes of determining 
                                eligibility, those children described 
                                in subparagraphs (F) and (G) of such 
                                subsection, that constitutes a 
                                percentage of the total student 
                                enrollment of the agency that is not 
                                less than 35 percent; and
                                    ``(II) was eligible to receive 
                                assistance under subsection (b)(2) for 
                                fiscal year 2001.'';
                    (B) by amending subparagraph (C) to read as 
                follows:
                    ``(C) Maximum amount for heavily impacted local 
                educational agencies.--
                            ``(i) In general.--The maximum amount that 
                        a heavily impacted local educational agency is 
                        eligible to receive under this paragraph for 
                        any fiscal year is the sum of the total 
                        weighted student units, as computed under 
                        subsection (a)(2) and subject to clause (ii), 
                        multiplied by the greater of--
                                    ``(I) four-fifths of the average 
                                per-pupil expenditure of the State in 
                                which the local educational agency is 
                                located for the third fiscal year 
                                preceding the fiscal year for which the 
                                determination is made; or
                                    ``(II) four-fifths of the average 
                                per-pupil expenditure of all of the 
                                States for the third fiscal year 
                                preceding the fiscal year for which the 
                                determination is made.
                            ``(ii) Special rule.--(I)(aa) For a local 
                        educational agency with respect to which 35 
                        percent or more of the total student enrollment 
                        of the schools of the agency are children 
                        described in subparagraphs (D) or (E) (or a 
                        combination thereof) of subsection (a)(1), and 
                        has an enrollment of children described in 
                        subparagraphs (A), (B), or (C) of such 
                        subsection equal to at least 10 percent of the 
                        agency's total enrollment, the Secretary shall 
                        calculate the weighted student units of those 
                        children described in subparagraphs (D) or (E) 
                        of such subsection by multiplying the number of 
                        such children by a factor of 0.55.
                            ``(bb) For any local educational agency 
                        that received a payment under this clause for 
                        fiscal year 2006, the local educational agency 
                        shall not be required to have an enrollment of 
                        children described in subparagraph (A), (B), or 
                        (C) of such subsection equal to at least 10 
                        percent of the agency's total enrollment.
                            ``(II) For a local educational agency that 
                        has an enrollment of 100 or fewer children 
                        described in subsection (a)(1), the Secretary 
                        shall calculate the total number of weighted 
                        student units for purposes of subsection (a)(2) 
                        by multiplying the number of such children by a 
                        factor of 1.75.
                            ``(III) For a local educational agency that 
                        does not qualify under subparagraph (B)(i)(I) 
                        of this subsection and has an enrollment of 
                        more than 100 but not more than 1,000 children 
                        described in subsection (a)(1), the Secretary 
                        shall calculate the total number of weighted 
                        student units for purposes of subsection (a)(2) 
                        by multiplying the number of such children by a 
                        factor of 1.25.'';
                    (C) by amending subparagraph (D) to read as 
                follows:
                    ``(D) Maximum amount for large heavily impacted 
                local educational agencies.--(i)(I) Subject to clause 
                (ii), the maximum amount that a heavily impacted local 
                educational agency described in subclause (II) is 
                eligible to receive under this paragraph for any fiscal 
                year shall be determined in accordance with the formula 
                described in paragraph (1)(C).
                    ``(II) A heavily impacted local educational agency 
                described in this subclause is a local educational 
                agency that has a total student enrollment of not less 
                than 25,000 students, of which not less than 50 percent 
                are children described in subsection (a)(1) and not 
                less than 5,500 of such children are children described 
                in subparagraph (A) and (B) of subsection (a)(1).
                    ``(ii) For purposes of calculating the maximum 
                amount described in clause (i), the factor used in 
                determining the weighted student units under subsection 
                (a)(2) with respect to children described in 
                subparagraph (A) and (B) of subsection (a)(1) shall be 
                1.35.'';
                    (D) by striking subparagraph (E);
                    (E) by redesignating subparagraph (F) as 
                subparagraph (E);
                    (F) in subparagraph (E) (as so redesignated by 
                subparagraph (G))--
                            (i) by striking clause (ii);
                            (ii) by striking ``; and'' at the end of 
                        clause (i) and inserting a period; and
                            (iii) by striking ``the Secretary'' and all 
                        that follows through ``shall use'' and 
                        inserting ``the Secretary shall use'';
                    (G) by redesignating subparagraph (G) as 
                subparagraph (F);
                    (H) in subparagraph (F) (as so redesignated by 
                subparagraph (I)), in the matter preceding clause (i), 
                by striking ``(C)(i)(II)(bb)'' and inserting 
                ``(B)(i)(II)(bb)'';
                    (I) by redesignating subparagraph (H) as 
                subparagraph (G); and
                    (J) in subparagraph (G) (as so redesignated by 
                subparagraph (K))--
                            (i) in clause (i)--
                                    (I) by striking ``(B), (C), (D), or 
                                (E),'' and inserting ``(B), (C), or 
                                (D),'';
                                    (II) by striking ``by reason of'' 
                                and inserting ``due to'';
                                    (III) by inserting after ``clause 
                                (iii),'' the following: ``or as the 
                                direct result of base realignment and 
                                closure or modularization as determined 
                                by the Secretary of Defense and force 
                                structure change or force 
                                relocation,''; and
                                    (IV) by inserting before the period 
                                at the end the following: ``or during 
                                such time as activities associated with 
                                base closure and realignment, 
                                modularization, force structure change, 
                                or force relocation is ongoing''; and
                            (ii) in clause (ii) by striking ``(D) or 
                        (E)'' in both places such term appears and 
                        inserting ``(C) or (D)'';
            (3) in subsection (b)(3)(B)--
                    (A) by redesignating clause (iv) as (v); and
                    (B) by inserting after clause (iii) the following:
                            ``(iv) For any local educational agency 
                        that is providing a program of distant learning 
                        to children not residing within the legally 
                        defined boundaries of the agency, the Secretary 
                        shall disregard such children from such 
                        agency's total enrollment when calculating the 
                        percentage under subclause (I) of clause (i) 
                        and shall disregard any funds received for such 
                        children when calculating the total current 
                        expenditures attributed to the operation of 
                        such agency when calculating the percentage 
                        under subclause (II) of clause (i).'';
            (4) in subsection (b)(3)(C) by striking ``or (E) of 
        paragraph (2), as the case may be'' and inserting ``of 
        paragraph (2)'';
            (5) in subsection (b)(3), by amending subparagraph (D) to 
        read as follows:
                    ``(D) Ratable distribution.--For any fiscal year 
                described in subparagraph (A) for which the sums 
                available exceed the amount required to pay each local 
                educational agency 100 percent of its threshold payment 
                the Secretary shall distribute the excess sums to each 
                eligible local educational agency that has not received 
                its full amount computed under paragraph (1) or (2) (as 
                the case may be) by multiplying--
                            ``(i) a percentage, the denominator of 
                        which is the difference between the full amount 
                        computed under paragraph (1) or (2) (as the 
                        case may be) for all local educational agencies 
                        and the amount of the threshold payment (as 
                        calculated under subparagraphs (B) and (C)) of 
                        all local educational agencies, and the 
                        numerator of which is the aggregate amount of 
                        the excess sums, by:
                            ``(ii) the difference between the full 
                        amount computed under paragraph (1) or (2) (as 
                        the case may be) for the agency and the amount 
                        of the threshold payment as calculated under 
                        subparagraphs (B) and (C) of the agency.'';
            (6) in subsection (c) by amending paragraph (2) to read as 
        follows:
            ``(2) Exception.--Calculation of payments for a local 
        educational agency shall be based on data from the fiscal year 
        for which the agency is making an application for payment if 
        such agency is newly established by a State (first year of 
        operation only).'';
            (7) in subsection (e) by striking paragraphs (1) and (2) 
        and inserting the following:
            ``(1) In general.--Subject to paragraph (2), the total 
        amount the Secretary shall pay a local educational agency--
                    ``(A) for fiscal year 2014 shall not be less than 
                90 percent of the total amount that the local education 
                agency received under subsection (b)(1), (b)(2), or 
                (b)(2)(B)(ii) for fiscal year 2011;
                    ``(B) for fiscal year 2015 shall not be less than 
                80 percent of the total amount that the local 
                educational agency received under subsection (b)(1), 
                (b)(2), or (b)(2)(B)(ii) for fiscal year 2011;
                    ``(C) for fiscal year 2016 shall not be less than 
                70 percent of the total amount that the local 
                educational agency received under subsection (b)(1), 
                (b)(2), or (b)(2)(B)(ii) for fiscal year 2011, of which 
                such amount shall be considered a foundation payment 
                for each succeeding fiscal year until such time as the 
                agency's maximum payment as determined under paragraphs 
                (1) or (2) of subsection (b) as the case may be, 
                exceeds the amount provided for under this 
                subparagraph.
            ``(2) Ratable reduction.--
                    ``(A) In general.--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) 
                for such year, then the Secretary shall ratably reduce 
                the payments to all agencies for such year.
                    ``(B) Additional funds.--If additional funds become 
                available for making payments under paragraph (1) for 
                such fiscal year, payments that were reduced under 
                subparagraph (A) shall be increased on the same basis 
                as such payments were reduced.''; and
            (8) by striking subsection (g).

SEC. 5. AMENDMENTS TO SECTION 8007 (CONSTRUCTION) OF THE ESEA.

    Section 8007 of the Elementary and Secondary Education Act of 1965 
(20 U.S.C. 7707) is amended to read as follows:

``SEC. 8007. CONSTRUCTION.

    ``(a) School Facility Emergency and Modernization Grants 
Authorized.--
            ``(1) In general.--From 100 percent of the amount 
        appropriated for each fiscal year under section 8014(e), the 
        Secretary--
                    ``(A) shall award emergency grants in accordance 
                with this subsection to eligible local educational 
                agencies to enable the agencies to carry out emergency 
                repairs of school facilities; and
                    ``(B) shall award modernization grants in 
                accordance with this subsection to eligible local 
                educational agencies to enable the agencies to carry 
                out the modernization of school facilities.
            ``(2) Priority.--In approving applications from local 
        educational agencies for emergency grants and modernization 
        grants under this subsection, the Secretary shall give priority 
        to applications in accordance with the following:
                    ``(A) The Secretary shall first give priority to 
                applications for emergency grants from local 
                educational agencies that meet the requirements of 
                paragraph (3)(A) and, among such applications for 
                emergency grants, shall give priority to those 
                applications from local educational agencies based on 
                the severity of the emergency, as determined by the 
                Secretary.
                    ``(B) The Secretary shall next give priority to 
                applications for modernization grants from local 
                educational agencies that meet the requirements of 
                paragraph (3)(B) and, among such applications for 
                modernization grants, shall give priority to those 
                applications from local educational agencies based on 
                the severity of the need for modernization, as 
                determined by the Secretary.
            ``(3) Eligibility requirements.--
                    ``(A) Emergency grants.--A local educational agency 
                is eligible to receive an emergency grant under 
                paragraph (2)(A) if--
                            ``(i) the agency (or in the case of a local 
                        educational agency that does not have the 
                        authority to tax or issue bonds, the agency's 
                        fiscal agent)--
                                    ``(I) has no practical capacity to 
                                issue bonds; or
                                    ``(II) has minimal capacity to 
                                issue bonds and is at not less than 75 
                                percent of the agency's limit of bonded 
                                indebtedness; or
                            ``(ii) the agency is eligible to receive 
                        assistance under subsection (a) for the fiscal 
                        year and has a school facility emergency, as 
                        determined by the Secretary, that poses a 
                        health or safety hazard to the students and 
                        school personnel assigned to the school 
                        facility.
                    ``(B) Modernization grants.--A local educational 
                agency is eligible to receive a modernization grant 
                under paragraph (2)(B) if--
                            ``(i) the agency receives a basic support 
                        payment under section 8003(b) for the fiscal 
                        year; or
                            ``(ii) the agency receives a Federal 
                        properties payment under section 8002 for the 
                        fiscal year.
                    ``(C) Rule of construction.--For purposes of 
                subparagraph (A)(i), a local educational agency--
                            ``(i) has no practical capacity to issue 
                        bonds if the total assessed value of real 
                        property that may be taxed for school purposes 
                        is less than $25,000,000; and
                            ``(ii) has minimal capacity to issue bonds 
                        if the total assessed value of real property 
                        that may be taxed for school purposes is at 
                        least $25,000,000 but not more than 
                        $50,000,000.
            ``(4) Award criteria.--In awarding emergency grants and 
        modernization grants under this subsection, the Secretary shall 
        consider the following factors:
                    ``(A) The ability of the local educational agency 
                to respond to the emergency, or to pay for the 
                modernization project, as the case may be, as measured 
                by--
                            ``(i) the agency's level of bonded 
                        indebtedness;
                            ``(ii) the assessed value of real property 
                        per student that may be taxed for school 
                        purposes compared to the average of the 
                        assessed value of real property per student 
                        that may be taxed for school purposes in the 
                        State in which the agency is located;
                            ``(iii) the agency's total tax rate for 
                        school purposes (or for capital expenditures, 
                        if applicable) compared to the average total 
                        tax rate for school purposes (or the average 
                        capital expenditure tax rate, if applicable) in 
                        the State in which the agency is located; and
                            ``(iv) funds that are available to the 
                        agency, from any other source, including 
                        subsection (a), that may be used for capital 
                        expenditures.
                    ``(B) The percentage of property in the agency that 
                is nontaxable due to the presence of the Federal 
                Government.
                    ``(C) The number and percentages of children 
                described in subparagraphs (A), (B), (C), and (D) of 
                section 8003(a)(1) served in the school facility with 
                the emergency or served in the school facility proposed 
                for modernization, as the case may be.
                    ``(D) In the case of an emergency grant, the 
                severity of the emergency, as measured by the threat 
                that the condition of the school facility poses to the 
                health, safety, and well-being of students.
                    ``(E) In the case of a modernization grant--
                            ``(i) the severity of the need for 
                        modernization, as measured by such factors as--
                                    ``(I) overcrowding, as evidenced by 
                                the use of portable classrooms, or the 
                                potential for future overcrowding 
                                because of increased enrollment; or
                                    ``(II) the agency's inability to 
                                utilize technology or offer a 
                                curriculum in accordance with 
                                contemporary State standards due to the 
                                physical limitations of the current 
                                school facility; and
                            ``(ii) the age of the school facility 
                        proposed for modernization.
            ``(5) Other award provisions.--
                    ``(A) General provisions.--
                            ``(i) Limitations on amount of funds.--
                                    ``(I) In general.--The amount of 
                                funds provided under an emergency grant 
                                or a modernization grant awarded under 
                                this subsection to a local educational 
                                agency that meets the requirements of 
                                subclause (II) of paragraph (3)(A)(i) 
                                for purposes of eligibility under 
                                subparagraph (A) or (B) of paragraph 
                                (3)--
                                            ``(aa) shall not exceed 50 
                                        percent of the total cost of 
                                        the project to be assisted 
                                        under this subsection; and
                                            ``(bb) shall not exceed 
                                        $4,000,000 during any 4-year 
                                        period.
                                    ``(II) In-kind contributions.--A 
                                local educational agency may use in-
                                kind contributions to meet the matching 
                                requirement of subclause (I)(aa).
                            ``(ii) Prohibitions on use of funds.--A 
                        local educational agency may not use funds 
                        provided under an emergency grant or 
                        modernization grant awarded under this 
                        subsection for--
                                    ``(I) a project for a school 
                                facility for which the agency does not 
                                have full title or other interest;
                                    ``(II) stadiums or other school 
                                facilities that are primarily used for 
                                athletic contests, exhibitions, or 
                                other events for which admission is 
                                charged to the general public; or
                                    ``(III) the acquisition of real 
                                property.
                            ``(iii) Supplement, not supplant.--A local 
                        educational agency shall use funds provided 
                        under an emergency grant or modernization grant 
                        awarded under this subsection only to 
                        supplement the amount of funds that would, in 
                        the absence of the Federal funds provided under 
                        the grant, be made available from non-Federal 
                        sources to carry out emergency repairs of 
                        school facilities or to carry out the 
                        modernization of school facilities, as the case 
                        may be, and not to supplant such funds.
                            ``(iv) Maintenance costs.--Nothing in this 
                        subsection shall be construed to authorize the 
                        payment of maintenance costs in connection with 
                        any school facility modernized in whole or in 
                        part with Federal funds provided under this 
                        subsection.
                            ``(v) Environmental safeguards.--All 
                        projects carried out with Federal funds 
                        provided under this subsection shall comply 
                        with all relevant Federal, State, and local 
                        environmental laws and regulations.
                            ``(vi) Carry-over of certain 
                        applications.--A local educational agency that 
                        applies for an emergency grant or a 
                        modernization grant under this subsection for a 
                        fiscal year and does not receive the grant for 
                        the fiscal year shall have the application for 
                        the grant considered for the following fiscal 
                        year, subject to the priority requirements of 
                        paragraph (2) and the award criteria 
                        requirements of paragraph (4).
                    ``(B) Emergency grants; prohibition on use of 
                funds.--A local educational agency that is awarded an 
                emergency grant under this subsection may not use 
                amounts under the grant for the complete or partial 
                replacement of an existing school facility unless such 
                replacement is less expensive or more cost-effective 
                than correcting the identified emergency.
            ``(6) Application.--A local educational agency that desires 
        to receive an emergency grant or a modernization grant under 
        this subsection shall submit an application to the Secretary at 
        such time, in such manner, and accompanied by such information 
        as the Secretary may require. Each application shall contain 
        the following:
                    ``(A) A description of how the local educational 
                agency meets the award criteria under paragraph (4), 
                including the information described in clauses (i) 
                through (iv) of paragraph (4)(A) and subparagraphs (B) 
                and (C) of paragraph (4).
                    ``(B) In the case of an application for an 
                emergency grant--
                            ``(i) a description of the school facility 
                        deficiency that poses a health or safety hazard 
                        to the occupants of the facility and a 
                        description of how the deficiency will be 
                        repaired; and
                            ``(ii) a signed statement from an 
                        appropriate local official certifying that a 
                        deficiency in the school facility threatens the 
                        health or safety of the occupants of the 
                        facility or that prevents the use of all or a 
                        portion of the building.
                    ``(C) In the case of an application for a 
                modernization grant--
                            ``(i) an explanation of the need for the 
                        school facility modernization project;
                            ``(ii) the date on which original 
                        construction of the facility to be modernized 
                        was completed;
                            ``(iii) a listing of the school facilities 
                        to be modernized, including the number and 
                        percentage of children determined under section 
                        8003(a)(1) in average daily attendance in each 
                        school facility; and
                            ``(iv) a description of the ownership of 
                        the property on which the current school 
                        facility is located or on which the planned 
                        school facility will be located.
                    ``(D) A description of the project for which a 
                grant under this subsection will be used, including a 
                cost estimate for the project.
                    ``(E) A description of the interest in, or 
                authority over, the school facility involved, such as 
                an ownership interest or a lease arrangement.
                    ``(F) Such other information and assurances as the 
                Secretary may reasonably require.
            ``(7) Report.--
                    ``(A) In general.--Not later than January 1 of each 
                year, the Secretary shall prepare and submit to the 
                appropriate congressional committees a report that 
                contains a justification for each grant awarded under 
                this subsection for the prior fiscal year.
                    ``(B) Definition.--In this paragraph, the term 
                `appropriate congressional committees' means--
                            ``(i) the Committee on Appropriations and 
                        the Committee on Education and the Workforce of 
                        the House of Representatives; and
                            ``(ii) the Committee on Appropriations and 
                        the Committee on Health, Education, Labor, and 
                        Pensions of the Senate.''.
                                 <all>
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