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[104th Congress Public Law 195]
[From the U.S. Government Printing Office]

<DOC>
[DOCID: f:publ195.104]

[[Page 110 STAT. 2379]]

Public Law 104-195
104th Congress

                                 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. <<NOTE: Sept. 16, 1996 -  [H.R. 
                                3269]>> 

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

SECTION 1. HOLD-HARMLESS AMOUNTS FOR PAYMENTS RELATING TO FEDERAL 
            ACQUISITION OF REAL PROPERTY.

    Section 8002 of the Elementary and Secondary Education Act of 1965 
(20 U.S.C. 7702) is amended by adding at the end the following new 
subsections:
    ``(g) Former Districts.--
            ``(1) In general.--Where the school district of any local 
        educational agency described in paragraph (2) is formed at any 
        time after 1938 by the consolidation of two or more former 
        school districts, such agency may elect (at any time such agency 
        files an application under section 8005) for any fiscal year 
        after fiscal year 1994 to have (A) the eligibility of such local 
        educational agency, and (B) the amount which such agency shall 
        be eligible to receive, determined under this section only with 
        respect to such of the former school districts comprising such 
        consolidated school districts as such agency shall designate in 
        such election.
            ``(2) Eligible local educational agencies.--A local 
        educational agency referred to in paragraph (1) is any local 
        educational agency that, for fiscal year 1994 or any preceding 
        fiscal year, applied for and was determined eligible under 
        section 2(c) of the Act of September 30, 1950 (Public Law 874, 
        81st Congress) as such section was in effect for such fiscal 
        year.

    ``(h) Hold-Harmless Amounts.--
            ``(1) In general.--Except as provided in paragraph (2)(A), 
        the total amount that the Secretary shall pay under subsection 
        (b) to a local educational agency that is otherwise eligible for 
        a payment under this section--
                    ``(A) for fiscal year 1995 shall not be less than 85 
                percent of the amount such agency received for fiscal 
                year 1994 under section 2 of the Act of September 30, 
                1950 (Public Law 874, 81st Congress) as such section was 
                in effect on September 30, 1994; or
                    ``(B) for fiscal year 1996 shall not be less than 85 
                percent of the amount such agency received for fiscal 
                year 1995 under subsection (b).

[[Page 110 STAT. 2380]]

            ``(2) Ratable reductions.--(A)(i) If necessary in order to 
        make payments to local educational agencies in accordance with 
        paragraph (1) for any fiscal year, the Secretary first shall 
        ratably reduce payments under subsection (b) for such year to 
        local educational agencies that do not receive a payment under 
        this subsection for such year.
            ``(ii) If additional funds become available for making 
        payments under subsection (b) for such year, then payments that 
        were reduced under clause (i) shall be increased on the same 
        basis as such payments were reduced.
            ``(B)(i) 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) after the application of subparagraph (A) 
        for such year, then the Secretary shall ratably reduce payments 
        under paragraph (1) to all such agencies for such year.
            ``(ii) If additional funds become available for making 
        payments under paragraph (1) for such fiscal year, then payments 
        that were reduced under clause (i) shall be increased on the 
        same basis as such payments were reduced.''.

SEC. 2. APPLICATIONS FOR INCREASED PAYMENTS.

    (a) Payments.--Notwithstanding any other provision of law--
            (1) <<NOTE: South Dakota.>>  the Bonesteel-Fairfax School 
        District Number 26-5, South Dakota, and the Wagner Community 
        School District Number 11-4, South Dakota, shall be eligible to 
        apply for payment for fiscal year 1994 under section 3(d)(2)(B) 
        of the Act of September 30, 1950 (Public Law 874, 81st Congress) 
        (as such section was in effect on September 30, 1994); and
            (2) the Secretary of Education shall use a subgroup of 10 or 
        more generally comparable local educational agencies for the 
        purpose of calculating a payment described in paragraph (1) for 
        a local educational agency described in such paragraph.

    (b) Application.--In order to be eligible to receive a payment 
described in subsection (a), a school district described in such 
subsection shall apply for such payment within 30 days after the date of 
enactment of this Act.
    (c) Construction.--Nothing in this section shall be construed to 
require a local educational agency that received a payment under section 
3(d)(2)(B) of the Act of September 30, 1950 (Public Law 874, 81st 
Congress) (as such section was in effect on September 30, 1994) for 
fiscal year 1994 to return such payment or a portion of such payment to 
the Federal Government.

SEC. 3. PAYMENTS FOR ELIGIBLE FEDERALLY CONNECTED CHILDREN RESIDING ON 
            MILITARY INSTALLATION HOUSING UNDERGOING RENOVATION.

    (a) In General.--Section 8003(a) of the Elementary and Secondary 
Education Act of 1965 (20 U.S.C. 7703(a)) is amended by adding at the 
end the following new paragraph:
            ``(4) Military installation housing undergoing renovation.--
        For purposes of computing the amount of a payment for a local 
        educational agency for children described in paragraph 
        (1)(D)(i), the Secretary shall consider such children to be 
        children described in paragraph (1)(B) if the Secretary 
        determines, on the basis of a certification provided to the 
        Secretary by a designated representative of the Secretary of 
        Defense, that such children would have resided in housing on 
        Federal

[[Page 110 STAT. 2381]]

        property in accordance with paragraph (1)(B) except that such 
        housing was undergoing renovation on the date for which the 
        Secretary determines the number of children under paragraph 
        (1).''.

    (b) Effective <<NOTE: 20 USC 7703 note.>>  Date.--Paragraph (4) of 
section 8003(a) of the Elementary and Secondary Education Act of 1965, 
as added by subsection (a), shall apply with respect to fiscal years 
after fiscal year 1995.

SEC. 4. COMPUTATION OF PAYMENTS FOR ELIGIBLE FEDERALLY CONNECTED 
            CHILDREN IN STATES WITH ONLY ONE LOCAL EDUCATIONAL AGENCY.

    (a) In General.--Section 8003(b) of the Elementary and Secondary 
Education Act of 1965 (20 U.S.C. 7703(b)) is amended by adding at the 
end the following new paragraph:
            ``(3) States with only one local educational agency.--
                    ``(A) In general.--In any of the 50 States of the 
                United States in which there is only one local 
                educational agency, the Secretary shall, for purposes of 
                paragraphs (1)(B), (1)(C), and (2) of this subsection, 
                and subsection (e), consider each administrative school 
                district in the State to be a separate local educational 
                agency.
                    ``(B) Computation of maximum amount of basic support 
                payment and threshold payment.--In computing the maximum 
                payment amount under paragraph (1)(C) and the learning 
                opportunity threshold payment under paragraph (2)(B) for 
                an administrative school district described in 
                subparagraph (A)--
                          ``(i) the Secretary shall first determine the 
                      maximum payment amount and the total current 
                      expenditures for the State as a whole; and
                          ``(ii) the Secretary shall then--
                                    ``(I) proportionately allocate such 
                                maximum payment amount among the 
                                administrative school districts on the 
                                basis of the respective weighted student 
                                units of such districts; and
                                    ``(II) proportionately allocate such 
                                total current expenditures among the 
                                administrative school districts on the 
                                basis of the respective number of 
                                students in average daily attendance at 
                                such districts.''.

    (b) Effective <<NOTE: 20 USC 7703 note.>>  Date.--Paragraph (3) of 
section 8003(b) of the Elementary and Secondary Education Act of 1965, 
as added by subsection (a), shall apply with respect to fiscal years 
after fiscal year 1994.

SEC. 5. DATA AND DETERMINATION OF AVAILABLE FUNDS.

    (a) Data.--Paragraph (4) of section 8003(f) of the Elementary and 
Secondary Education Act of 1965 (20 U.S.C. 7703(f)) is 
amended--
            (1) in the heading, by striking ``Current year'';
            (2) by amending subparagraph (A) to read as follows:
                    ``(A) shall use student, revenue, and tax data from 
                the second fiscal year preceding the fiscal year for 
                which the local educational agency is applying for 
                assistance under this subsection;''; and

[[Page 110 STAT. 2382]]

            (3) in subparagraph (B), by striking ``such year'' and 
        inserting ``the fiscal year for which the local educational 
        agency is applying for assistance under this subsection''.

    (b) Determination of Available Funds.--Paragraph (3) of section 
8003(f) of the Elementary and Secondary Education Act of 1965 (20 U.S.C. 
7703(f)) is amended--
            (1) in the matter preceding subclause (I) of subparagraph 
        (A)(iii), by inserting ``, except as provided in subparagraph 
        (C),'' after ``but''; and
            (2) by adding at the end the following new subparagraph:
                    ``(C) Determination of available funds.--When 
                determining the amount of funds available to the local 
                educational agency for current expenditures for purposes 
                of subparagraph (A)(iii) for a fiscal year, the 
                Secretary shall include, with respect to the local 
                educational agency's opening cash balance for such 
                fiscal year, the portion of such balance that is the 
                greater of--
                          ``(i) the amount that exceeds the maximum 
                      amount of funds for current expenditures that the 
                      local educational agency was allowed by State law 
                      to carry over from the prior fiscal year, if State 
                      restrictions on such amounts were applied 
                      uniformly to all local educational agencies in the 
                      State; or
                          ``(ii) the amount that exceeds 30 percent of 
                      the local educational agency's operating costs for 
                      the prior fiscal year.''.

    (c) Effective <<NOTE: 20 USC 7703 note.>>  Date.--The amendments 
made by subsections (a) and (b) shall apply with respect to fiscal years 
after fiscal year 1996.

SEC. 6. PAYMENTS RELATING TO FEDERAL PROPERTY.

    Section 8002 of the Elementary and Secondary Education Act of 1965 
(20 U.S.C. 7702) (as amended by section 1) is further amended by adding 
at the end thereof the following new subsection:
    ``(i) Priority Payments.--Notwithstanding subsection (b)(1)(B), and 
for any fiscal year beginning with fiscal year 1997 for which the amount 
appropriated to carry out this section exceeds the amount so 
appropriated for fiscal year 1996, the Secretary shall first use such 
excess amount to increase the payment that would otherwise be made under 
this section to not more than 50 percent of the maximum amount 
determined under subsection (b) for any local educational agency that--
            ``(1) received a payment under this section for fiscal year 
        1996;
            ``(2) serves a school district that contains all or a 
        portion of a United States military academy;
            ``(3) serves a school district in which the local tax 
        assessor has certified that at least 60 percent of the real 
        property is federally owned; and
            ``(4) demonstrates to the satisfaction of the Secretary that 
        such agency's per-pupil revenue derived from local sources for 
        current expenditures is not less than that revenue for the 
        preceding fiscal year.''.

SEC. 7. TREATMENT OF IMPACT AID PAYMENTS.

    (a) In General.--The Secretary of Education shall treat any State as 
having met the requirements of section 5(d)(2)(A) of the Act of 
September 30, 1950 (Public Law 874, 81st Congress) for

[[Page 110 STAT. 2383]]

fiscal year 1991 (as such section was in effect for such fiscal year), 
and as not having met those requirements for each of the fiscal years 
1992, 1993, and 1994 (as such section was in effect for fiscal year 
1992, 1993, and 1994, respectively), if--
            (1) the State's program of State aid was not certified by 
        the Secretary under section 5(d)(2)(C)(i) of the Act of 
        September 30, 1950 (Public Law 874, 81st Congress) for any 
        fiscal year prior to fiscal year 1991;
            (2) the State submitted timely notice under that section of 
        the State's intention to seek that certification for fiscal year 
        1991;
            (3) the Secretary determined that the State did not meet the 
        requirements of section 5(d)(2)(A) of such Act for fiscal year 
        1991; and
            (4) the State made a payment to each local educational 
        agency in the State (other than a local educational agency that 
        received a payment under section 3(d)(2)(B) of such Act for 
        fiscal year 1991) in an amount equal to the difference between 
        the amount such agency received under such Act for fiscal year 
        1991 and the amount such agency would have received under such 
        Act for fiscal year 1991 if payments under such Act had not been 
        taken into consideration in awarding State aid to such agencies 
        for fiscal year 1991.

    (b) Repayment Not Required.--Notwithstanding any other provision of 
law, any local educational agency in a State that meets the requirements 
of paragraphs (1) through (4) of subsection (a) and that received funds 
under section 3(d)(2)(B) of the Act of September 30, 1950 (Public Law 
874, 81st Congress) for fiscal year 1991 (as such section was in effect 
for such fiscal year) shall not, by virtue of subsection (a), be 
required to repay those funds to the Secretary of Education.

SEC. 8. SPECIAL RULE RELATING TO AVAILABILITY OF FUNDS FOR THE LOCAL 
            EDUCATIONAL AGENCY SERVING THE NORTH HANOVER TOWNSHIP PUBLIC 
            SCHOOLS, NEW JERSEY, UNDER PUBLIC LAW 874, 81ST CONGRESS.

    The Secretary of Education shall not consider any funds that the 
Secretary of Education determines the local educational agency serving 
the North Hanover Township Public Schools, New Jersey, has designated 
for a future liability under an early retirement incentive program as 
funds available to such local educational agency for purposes of 
determining the eligibility of such local educational agency for a 
payment for fiscal year 1994, or the amount of any such payment, under 
section 3(d)(2)(B) of the Act of September 30, 1950 (Public Law 874, 
81st Congress), as such section was in effect for such fiscal year.

SEC. 9. CORRECTED LOCAL CONTRIBUTION RATE.

    (a) Computation.--The Secretary of Education shall compute a payment 
for a local educational agency under the Act of September 30, 1950 
(Public Law 874, 81st Congress) for each of the fiscal years 1991 
through 1994 (as such Act was in effect for each of those fiscal years, 
as the case may be) using a corrected local contribution rate based on 
generally comparable school districts, if--
            (1) an incorrect local contribution rate was submitted to 
        the Secretary of Education by the State in which such agency

[[Page 110 STAT. 2384]]

        is located, and the incorrect local contribution rate was 
        verified as correct by the Secretary of Education; and
            (2) the corrected local contribution rate is subject to 
        review by the Secretary of Education.

    (b) Payment.--Using funds appropriated under the Act of September 
30, 1950 (Public Law 874, 81st Congress) for fiscal years 1991 through 
1994 that remain available for obligation (if any), the Secretary of 
Education shall make payments based on the computations described in 
subsection (a) to the local educational agency for such fiscal years.

SEC. 10. STATE EQUALIZATION PLANS.

    Subparagraph (A) of section 8009(b)(2) of the Elementary and 
Secondary Education Act of 1965 (20 U.S.C. 7709(b)(2)) is amended by 
striking ``more than'' and all that follows through the period and 
inserting ``more than 25 percent.''.

    Approved September 16, 1996.

LEGISLATIVE HISTORY--H.R. 3269 (S. 1509):
---------------------------------------------------------------------------

HOUSE REPORTS: No. 104-560 (Comm. on Economic and Educational 
Opportunities).
CONGRESSIONAL RECORD:
                                                        Vol. 141 (1995):
                                    Dec. 22, S. 1509 considered and 
                                        passed Senate.
                                                        Vol. 142 (1996):
                                    May 7, H.R. 3269 considered and 
                                        passed House.
                                    Aug. 2, considered and passed 
                                        Senate, amended.
                                    Sept. 4, House concurred in Senate 
                                        amendment.

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