I

104TH CONGRESS

2D SESSION H. R. 2886

To amend the Impact Aid program to provide for a hold-harmless with

respect to amounts for payments relating to the Federal acquisition

of real property, to permit certain local educational agencies to apply

for increased payments for fiscal year 1994 under the Impact Aid program, and to amend the Impact Aid program to make a technical

correction with respect to maximum payments for certain heavily impacted local educational agencies.

IN THE HOUSE OF REPRESENTATIVES

JANUARY 25, 1996

Mr. JOHNSON of South Dakota introduced the following bill; which was referred to the Committee on Economic and Educational Opportunities,

subsequently determined by the Speaker, in each case for consideration

of such provisions as fall within the jurisdiction of the committee concerned

A BILL

To amend the Impact Aid program to provide for a holdharmless with respect to amounts for payments relating

to the Federal acquisition of real property, to permit

certain local educational agencies to apply for increased

payments for fiscal year 1994 under the Impact Aid

program, and to amend the Impact Aid program to make

a technical correction with respect to maximum payments

for certain heavily impacted local educational agencies.

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled,
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1 SECTION 1. HOLD-HARMLESS AMOUNTS FOR PAYMENTS

2 RELATING TO FEDERAL ACQUISITION OF

3 REAL PROPERTY.

4 Section 8002 of the Elementary and Secondary Edu5 cation Act of 1965 (20 U.S.C. 7702) is amended by add6 ing at the end the following new subsections:

7 ‘‘(g) FORMER DISTRICTS.—

8 ‘‘(1) IN GENERAL.—Where the school district of

9 any local educational agency described in paragraph

10 (2) is formed at any time after 1938 by the consoli11 dation of two or more former school districts, such

12 agency may elect (at any time such agency files an

13 application under section 8005) for any fiscal year

14 to have (A) the eligibility of such local educational

15 agency, and (B) the amount which such agency shall

16 be eligible to receive, determined under this section

17 only with respect to such of the former school dis18 tricts comprising such consolidated school districts

19 as such agency shall designate in such election.

20 ‘‘(2) ELIGIBLE LOCAL EDUCATIONAL AGEN21 CIES.—A local educational agency referred to in

22 paragraph (1) is any local educational agency that,

23 for fiscal year 1994 or any preceding fiscal year, ap24 plied for and was determined eligible under section

25 2(c) of the Act of September 30, 1950 (Public Law
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1 874, 81st Congress) as such section was in effect on

2 September 30, 1994.

3 ‘‘(h) HOLD-HARMLESS AMOUNTS.—

4 ‘‘(1) IN GENERAL.—Except as provided in para5 graph (2)(A), the total amount that the Secretary

6 shall pay a local educational agency under sub7 section (b)—

8 ‘‘(A) for fiscal year 1995 shall not be less

9 than 85 percent of the amount such agency re10 ceived for fiscal year 1994 under section 2 of

11 the Act of September 30, 1950 (Public Law

12 874, 81st Congress) as such section was in ef13 fect on September 30, 1994; or

14 ‘‘(B) for fiscal year 1996 shall not be less

15 than 85 percent of the amount such agency re16 ceived for fiscal year 1995 under subsection (b).

17 ‘‘(2) RATABLE REDUCTIONS.—(A)(i) If nec18 essary in order to make payments to local edu19 cational agencies in accordance with paragraph (1)

20 for any fiscal year, the Secretary first shall ratably

21 reduce payments under subsection (b) for such year

22 to local educational agencies that do not receive a

23 payment under this subsection for such year.

24 ‘‘(ii) If additional funds become available for

25 making payments under subsection (b) for such
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1 year, then payments that were reduced under clause

2 (i) shall be increased on the same basis as such pay3 ments were reduced.

4 ‘‘(B)(i) If the sums made available under this

5 title for any fiscal year are insufficient to pay the

6 full amounts that all local educational agencies in all

7 States are eligible to receive under paragraph (1)

8 after the application of subparagraph (A) for such

9 year, then the Secretary shall ratably reduce pay10 ments under paragraph (1) to all such agencies for

11 such year.

12 ‘‘(ii) If additional funds become available for

13 making payments under paragraph (1) for such fis14 cal year, then payments that were reduced under

15 clause (i) shall be increased on the same basis as

16 such payments were reduced.’’.

17 SEC. 2. APPLICATIONS FOR INCREASED PAYMENTS.

18 (a) PAYMENTS.—Notwithstanding any other provi19 sion of law—

20 (1) the Bonesteel-Fairfax School District Num21 ber 26–5, South Dakota, and the Wagner Commu22 nity School District Number 11–4, South Dakota,

23 shall be eligible to apply for payment for fiscal year

24 1994 under section 3(d)(2)(B) of the Act of Septem25 ber 30, 1950 (Public Law 874, 81st Congress) (as
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1 such section was in effect on September 30, 1994);

2 and

3 (2) the Secretary of Education shall use a sub4 group of 10 or more generally comparable local edu5 cational agencies for the purpose of calculating a

6 payment described in paragraph (1), and the local

7 contribution rate applicable to such payment, for a

8 local educational agency described in such para9 graph.

10 (b) APPLICATION.—In order to be eligible to receive

11 a payment described in subsection (a), a school district

12 described in such subsection shall apply for such payment

13 within 30 days after the date of enactment of this Act.

14 (c) CONSTRUCTION.—Nothing in this section shall be

15 construed to require a local educational agency that re16 ceived a payment under section 3(d)(2)(B) of the Act of

17 September 30, 1950 (Public Law 874, 81st Congress) (as

18 such section was in effect on September 30, 1994) for fis19 cal year 1994 to return such payment or a portion of such

20 payment to the Federal Government.

21 SEC. 3. MAXIMUM PAYMENTS.

22 Subparagraph (B) of section 8003(f)(3) of the Ele23 mentary and Secondary Education Act of 1965 (20 U.S.C.

24 7703(f)(3)) is amended to read as follows:
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1 ‘‘(B) SPECIAL RULE.—The Secretary shall

2 determine the maximum amount that a local

3 educational agency described in clause (ii) or

4 (iii) of paragraph (2)(A) may receive under this

5 subsection in accordance with the following

6 computations:

7 ‘‘(i) The Secretary shall multiply the

8 average per-pupil expenditure for all States

9 by 0.7, except that such amount may not

10 exceed 125 percent of the average per11 pupil expenditure for all local educational

12 agencies in the State.

13 ‘‘(ii) The Secretary shall next multiply

14 the product determined under clause (i) by

15 the number of students who are served by

16 the local educational agency and described

17 in subparagraph (A) or (B) of subsection

18 (a)(1).

19 ‘‘(iii) The Secretary shall next sub20 tract the total amount of payments re21 ceived by the local educational agency

22 under subsections (b) and (d) for a fiscal

23 year from the amount determined under

24 clause (ii).’’.

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