In the Senate of the United States,

August 2, 1996.

Resolved, That the bill from the House of Representatives (H.R. 3269) entitled ‘‘An Act 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, and for other purposes.’’, do pass with the following

AMENDMENT:

Strike out all after the enacting clause and insert:

1 SECTION 1. HOLD-HARMLESS AMOUNTS FOR PAYMENTS RE2 LATING TO FEDERAL ACQUISITION OF REAL

3 PROPERTY.

4 Section 8002 of the Elementary and Secondary Edu5 cation Act of 1965 (20 U.S.C. 7702) is amended by adding

6 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
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1 (2) is formed at any time after 1938 by the consolida2 tion of two or more former school districts, such agen3 cy may elect (at any time such agency files an appli4 cation under section 8005) for any fiscal year after

5 fiscal year 1994 to have (A) the eligibility of such

6 local educational agency, and (B) the amount which

7 such agency shall be eligible to receive, determined

8 under this section only with respect to such of the

9 former school districts comprising such consolidated

10 school districts as such agency shall designate in such

11 election.

12 ‘‘(2) ELIGIBLE LOCAL EDUCATIONAL AGEN13 CIES.—A local educational agency referred to in

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

15 for fiscal year 1994 or any preceding fiscal year, ap16 plied for and was determined eligible under section

17 2(c) of the Act of September 30, 1950 (Public Law

18 874, 81st Congress) as such section was in effect for

19 such fiscal year.

20 ‘‘(h) HOLD-HARMLESS AMOUNTS.—

21 ‘‘(1) IN GENERAL.—Except as provided in para22 graph (2)(A), the total amount that the Secretary

23 shall pay under subsection (b) to a local educational

24 agency that is otherwise eligible for a payment under

25 this section—
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1 ‘‘(A) for fiscal year 1995 shall not be less

2 than 85 percent of the amount such agency re3 ceived for fiscal year 1994 under section 2 of the

4 Act of September 30, 1950 (Public Law 874, 81st

5 Congress) as such section was in effect on Sep6 tember 30, 1994; or

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

8 than 85 percent of the amount such agency re9 ceived for fiscal year 1995 under subsection (b).

10 ‘‘(2) RATABLE REDUCTIONS.—(A)(i) If necessary

11 in order to make payments to local educational agen12 cies in accordance with paragraph (1) for any fiscal

13 year, the Secretary first shall ratably reduce pay14 ments under subsection (b) for such year to local edu15 cational agencies that do not receive a payment under

16 this subsection for such year.

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

18 making payments under subsection (b) for such year,

19 then payments that were reduced under clause (i)

20 shall be increased on the same basis as such payments

21 were reduced.

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

23 title for any fiscal year are insufficient to pay the full

24 amounts that all local educational agencies in all

25 States are eligible to receive under paragraph (1)
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1 after the application of subparagraph (A) for such

2 year, then the Secretary shall ratably reduce pay3 ments under paragraph (1) to all such agencies for

4 such year.

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

6 making payments under paragraph (1) for such fiscal

7 year, then payments that were reduced under clause

8 (i) shall be increased on the same basis as such pay9 ments were reduced.’’.

10 SEC. 2. APPLICATIONS FOR INCREASED PAYMENTS.

11 (a) PAYMENTS.—Notwithstanding any other provision

12 of law—

13 (1) the Bonesteel-Fairfax School District Number

14 26–5, South Dakota, and the Wagner Community

15 School District Number 11–4, South Dakota, shall be

16 eligible to apply for payment for fiscal year 1994

17 under section 3(d)(2)(B) of the Act of September 30,

18 1950 (Public Law 874, 81st Congress) (as such sec19 tion was in effect on September 30, 1994); and

20 (2) the Secretary of Education shall use a sub21 group of 10 or more generally comparable local edu22 cational agencies for the purpose of calculating a pay23 ment described in paragraph (1) for a local edu24 cational agency described in such paragraph.
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1 (b) APPLICATION.—In order to be eligible to receive a

2 payment described in subsection (a), a school district de3 scribed in such subsection shall apply for such payment

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

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

6 construed to require a local educational agency that re7 ceived a payment under section 3(d)(2)(B) of the Act of

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

9 such section was in effect on September 30, 1994) for fiscal

10 year 1994 to return such payment or a portion of such pay11 ment to the Federal Government.

12 SEC. 3. PAYMENTS FOR ELIGIBLE FEDERALLY CONNECTED

13 CHILDREN RESIDING ON MILITARY INSTAL14 LATION HOUSING UNDERGOING RENOVA15 TION.

16 (a) IN GENERAL.—Section 8003(a) of the Elementary

17 and Secondary Education Act of 1965 (20 U.S.C. 7703(a))

18 is amended by adding at the end the following new para19 graph:

20 ‘‘(4) MILITARY INSTALLATION HOUSING UNDER21 GOING RENOVATION.—For purposes of computing the

22 amount of a payment for a local educational agency

23 for children described in paragraph (1)(D)(i), the

24 Secretary shall consider such children to be children

25 described in paragraph (1)(B) if the Secretary deter-
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1 mines, on the basis of a certification provided to the

2 Secretary by a designated representative of the Sec3 retary of Defense, that such children would have re4 sided in housing on Federal property in accordance

5 with paragraph (1)(B) except that such housing was

6 undergoing renovation on the date for which the Sec7 retary determines the number of children under para8 graph (1).’’.

9 (b) EFFECTIVE DATE.—Paragraph (4) of section

10 8003(a) of the Elementary and Secondary Education Act

11 of 1965, as added by subsection (a), shall apply with respect

12 to fiscal years after fiscal year 1995.

13 SEC. 4. COMPUTATION OF PAYMENTS FOR ELIGIBLE FEDER14 ALLY CONNECTED CHILDREN IN STATES

15 WITH ONLY ONE LOCAL EDUCATIONAL AGEN16 CY.

17 (a) IN GENERAL.—Section 8003(b) of the Elementary

18 and Secondary Education Act of 1965 (20 U.S.C. 7703(b))

19 is amended by adding at the end the following new para20 graph:

21 ‘‘(3) STATES WITH ONLY ONE LOCAL EDU22 CATIONAL AGENCY.—

23 ‘‘(A) IN GENERAL.—In any of the 50 States

24 of the United States in which there is only one

25 local educational agency, the Secretary shall, for
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1 purposes of paragraphs (1)(B), (1)(C), and (2) of

2 this subsection, and subsection (e), consider each

3 administrative school district in the State to be

4 a separate local educational agency.

5 ‘‘(B) COMPUTATION OF MAXIMUM AMOUNT

6 OF BASIC SUPPORT PAYMENT AND THRESHOLD

7 PAYMENT.—In computing the maximum pay8 ment amount under paragraph (1)(C) and the

9 learning opportunity threshold payment under

10 paragraph (2)(B) for an administrative school

11 district described in subparagraph (A)—

12 ‘‘(i) the Secretary shall first determine

13 the maximum payment amount and the

14 total current expenditures for the State as a

15 whole; and

16 ‘‘(ii) the Secretary shall then—

17 ‘‘(I) proportionately allocate such

18 maximum payment amount among the

19 administrative school districts on the

20 basis of the respective weighted student

21 units of such districts; and

22 ‘‘(II) proportionately allocate such

23 total current expenditures among the

24 administrative school districts on the

25 basis of the respective number of stu-
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1 dents in average daily attendance at

2 such districts.’’.

3 (b) EFFECTIVE DATE.—Paragraph (3) of section

4 8003(b) of the Elementary and Secondary Education Act

5 of 1965, as added by subsection (a), shall apply with respect

6 to fiscal years after fiscal year 1994.

7 SEC. 5. DATA AND DETERMINATION OF AVAILABLE FUNDS.

8 (a) DATA.—Paragraph (4) of section 8003(f) of the El9 ementary and Secondary Education Act of 1965 (20 U.S.C.

10 7703(f)) is amended—

11 (1) in the heading, by striking ‘‘CURRENT

12 YEAR’’;

13 (2) by amending subparagraph (A) to read as

14 follows:

15 ‘‘(A) shall use student, revenue, and tax

16 data from the second fiscal year preceding the

17 fiscal year for which the local educational agency

18 is applying for assistance under this sub19 section;’’; and

20 (3) in subparagraph (B), by striking ‘‘such

21 year’’ and inserting ‘‘the fiscal year for which the

22 local educational agency is applying for assistance

23 under this subsection’’.

24 (b) DETERMINATION OF AVAILABLE FUNDS.—Para25 graph (3) of section 8003(f) of the Elementary and Second-
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1 ary Education Act of 1965 (20 U.S.C. 7703(f)) is amend2 ed—

3 (1) in the matter preceding subclause (I) of sub4 paragraph (A)(iii), by inserting ‘‘, except as provided

5 in subparagraph (C),’’ after ‘‘but’’; and

6 (2) by adding at the end the following new sub7 paragraph:

8 ‘‘(C) DETERMINATION OF AVAILABLE

9 FUNDS.—When determining the amount of funds

10 available to the local educational agency for cur11 rent expenditures for purposes of subparagraph

12 (A)(iii) for a fiscal year, the Secretary shall in13 clude, with respect to the local educational agen14 cy’s opening cash balance for such fiscal year,

15 the portion of such balance that is the greater

16 of—

17 ‘‘(i) the amount that exceeds the maxi18 mum amount of funds for current expendi19 tures that the local educational agency was

20 allowed by State law to carry over from the

21 prior fiscal year, if State restrictions on

22 such amounts were applied uniformly to all

23 local educational agencies in the State; or
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1 ‘‘(ii) the amount that exceeds 30 per2 cent of the local educational agency’s oper3 ating costs for the prior fiscal year.’’.

4 (c) EFFECTIVE DATE.—The amendments made by sub5 sections (a) and (b) shall apply with respect to fiscal years

6 after fiscal year 1996.

7 SEC. 6. PAYMENTS RELATING TO FEDERAL PROPERTY.

8 Section 8002 of the Elementary and Secondary Edu9 cation Act of 1965 (20 U.S.C. 7702) (as amended by section

10 1) is further amended by adding at the end thereof the fol11 lowing new subsection:

12 ‘‘(i) PRIORITY PAYMENTS.—Notwithstanding sub13 section (b)(1)(B), and for any fiscal year beginning with

14 fiscal year 1997 for which the amount appropriated to

15 carry out this section exceeds the amount so appropriated

16 for fiscal year 1996, the Secretary shall first use such excess

17 amount to increase the payment that would otherwise be

18 made under this section to not more than 50 percent of the

19 maximum amount determined under subsection (b) for any

20 local educational agency that—

21 ‘‘(1) received a payment under this section for

22 fiscal year 1996;

23 ‘‘(2) serves a school district that contains all or

24 a portion of a United States military academy;
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1 ‘‘(3) serves a school district in which the local

2 tax assessor has certified that at least 60 percent of

3 the real property is federally owned; and

4 ‘‘(4) demonstrates to the satisfaction of the Sec5 retary that such agency’s per-pupil revenue derived

6 from local sources for current expenditures is not less

7 than that revenue for the preceding fiscal year.’’.

8 SEC. 7. TREATMENT OF IMPACT AID PAYMENTS.

9 (a) IN GENERAL.—The Secretary of Education shall

10 treat any State as having met the requirements of section

11 5(d)(2)(A) of the Act of September 30, 1950 (Public Law

12 874, 81st Congress) for fiscal year 1991 (as such section

13 was in effect for such fiscal year), and as not having met

14 those requirements for each of the fiscal years 1992, 1993,

15 and 1994 (as such section was in effect for fiscal year 1992,

16 1993, and 1994, respectively), if—

17 (1) the State’s program of State aid was not cer18 tified by the Secretary under section 5(d)(2)(C)(i) of

19 the Act of September 30, 1950 (Public Law 874, 81st

20 Congress) for any fiscal year prior to fiscal year

21 1991;

22 (2) the State submitted timely notice under that

23 section of the State’s intention to seek that certifi24 cation for fiscal year 1991;
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1 (3) the Secretary determined that the State did

2 not meet the requirements of section 5(d)(2)(A) of

3 such Act for fiscal year 1991; and

4 (4) the State made a payment to each local edu5 cational agency in the State (other than a local edu6 cational agency that received a payment under sec7 tion 3(d)(2)(B) of such Act for fiscal year 1991) in

8 an amount equal to the difference between the amount

9 such agency received under such Act for fiscal year

10 1991 and the amount such agency would have re11 ceived under such Act for fiscal year 1991 if pay12 ments under such Act had not been taken into consid13 eration in awarding State aid to such agencies for

14 fiscal year 1991.

15 (b) REPAYMENT NOT REQUIRED.—Notwithstanding

16 any other provision of law, any local educational agency

17 in a State that meets the requirements of paragraphs (1)

18 through (4) of subsection (a) and that received funds under

19 section 3(d)(2)(B) of the Act of September 30, 1950 (Public

20 Law 874, 81st Congress) for fiscal year 1991 (as such sec21 tion was in effect for such fiscal year) shall not, by virtue

22 of subsection (a), be required to repay those funds to the

23 Secretary of Education.
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1 SEC. 8. SPECIAL RULE RELATING TO AVAILABILITY OF

2 FUNDS FOR THE LOCAL EDUCATIONAL AGEN3 CY SERVING THE NORTH HANOVER TOWN4 SHIP PUBLIC SCHOOLS, NEW JERSEY, UNDER

5 PUBLIC LAW 874, 81ST CONGRESS.

6 The Secretary of Education shall not consider any

7 funds that the Secretary of Education determines the local

8 educational agency serving the North Hanover Township

9 Public Schools, New Jersey, has designated for a future li10 ability under an early retirement incentive program as

11 funds available to such local educational agency for pur12 poses of determining the eligibility of such local educational

13 agency for a payment for fiscal year 1994, or the amount

14 of any such payment, under section 3(d)(2)(B) of the Act

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

16 such section was in effect for such fiscal year.

17 SEC. 9. CORRECTED LOCAL CONTRIBUTION RATE.

18 (a) COMPUTATION.—The Secretary of Education shall

19 compute a payment for a local educational agency under

20 the Act of September 30, 1950 (Public Law 874, 81st Con21 gress) for each of the fiscal years 1991 through 1994 (as

22 such Act was in effect for each of those fiscal years, as the

23 case may be) using a corrected local contribution rate based

24 on generally comparable school districts, if—

25 (1) an incorrect local contribution rate was sub26 mitted to the Secretary of Education by the State in
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1 which such agency is located, and the incorrect local

2 contribution rate was verified as correct by the Sec3 retary of Education; and

4 (2) the corrected local contribution rate is subject

5 to review by the Secretary of Education.

6 (b) PAYMENT.—Using funds appropriated under the

7 Act of September 30, 1950 (Public Law 874, 81st Congress)

8 for fiscal years 1991 through 1994 that remain available

9 for obligation (if any), the Secretary of Education shall

10 make payments based on the computations described in sub11 section (a) to the local educational agency for such fiscal

12 years.

13 SEC. 10. STATE EQUALIZATION PLANS.

14 Subparagraph (A) of section 8009(b)(2) of the Elemen15 tary and Secondary Education Act of 1965 (20 U.S.C.

16 7709(b)(2)) is amended by striking ‘‘more than’’ and all

17 that follows through the period and inserting ‘‘more than

18 25 percent.’’.

Attest:

Secretary.
104TH CONGRESS

2D SESSION H. R. 3269

AMENDMENT
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