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[Congressional Bills 113th Congress]
[From the U.S. Government Publishing Office]
[S. 1108 Introduced in Senate (IS)]

113th CONGRESS
  1st Session
                                S. 1108

    To reauthorize the impact aid program under the Elementary and 
                    Secondary Education Act of 1965.

_______________________________________________________________________

                   IN THE SENATE OF THE UNITED STATES

                              June 6, 2013

 Ms. Hirono (for herself and Mr. Thune) introduced the following bill; 
     which was read twice and referred to the Committee on Health, 
                     Education, Labor, and Pensions

_______________________________________________________________________

                                 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 ``Local Taxpayer Relief Act''.

SEC. 2. PAYMENTS RELATING TO FEDERAL ACQUISITION OF REAL PROPERTY.

    (a) Amendments.--Section 8002 of the Elementary and Secondary 
Education Act of 1965 (20 U.S.C. 7702) is amended--
            (1) in subsection (a)--
                    (A) in the matter preceding paragraph (1), by 
                striking ``for a fiscal year ending prior to October 1, 
                2003''; and
                    (B) in the flush text following paragraph (2), by 
                inserting ``or (h)'' after ``subsection (b)'';
            (2) in subsection (b)--
                    (A) by striking paragraph (2) and inserting the 
                following:
            ``(2) Application of current levied real property tax 
        rate.--In calculating the amount that a local educational 
        agency is eligible to receive for a fiscal year, the Secretary 
        shall apply the current levied real property tax rate for 
        current expenditures levied by fiscally independent local 
        educational agencies, or imputed for fiscally dependent local 
        educational agencies, to the current annually determined 
        estimated taxable value of such acquired Federal property as 
        calculated under paragraph (3).''; and
                    (B) by striking paragraph (3) and inserting the 
                following:
            ``(3) Determination of taxable value for eligible federal 
        property.--
                    ``(A) In general.--In determining the total taxable 
                value of such acquired Federal property for fiscal year 
                2010 and each succeeding fiscal year, the Secretary 
                shall--
                            ``(i) first determine the total taxable 
                        value for the purpose of levying property tax 
                        for school purposes for current expenditures of 
                        real property located within the boundaries of 
                        such local educational agency;
                            ``(ii) then determine the per acre value of 
                        the eligible Federal property by dividing the 
                        total taxable value as determined in clause 
                        (i), by the difference between the total acres 
                        located within the boundaries of the local 
                        educational agency and the number of Federal 
                        acres eligible under this section; and
                            ``(iii) then determine the total taxable 
                        value of the eligible Federal property by 
                        multiplying the per acre value as calculated 
                        under clause (ii) by the number of Federal 
                        acres eligible under this section.
                    ``(B) Special rule.--In the case of Federal 
                property eligible under this section that is within the 
                boundaries of 2 or more local educational agencies, any 
                one of the local educational agencies affected may ask 
                the Secretary to calculate the per acre value of each 
                local educational agency as provided under subparagraph 
                (A) and apply the average of the per acre values to the 
                acres of the Federal property to the agency or agencies 
                making such request.'';
            (3) in subsection (f), by striking paragraphs (4) and (5);
            (4) by striking subsection (g) and inserting the following:
    ``(g) Former Districts.--
            ``(1) Consolidations.--For fiscal year 2006 and all 
        succeeding fiscal years, if a local educational agency 
        described in paragraph (2) is formed at any time after 1938 by 
        the consolidation of 2 or more former school districts, the 
        local educational agency may elect to have the Secretary 
        determine its eligibility and any amount for which the local 
        educational agency is eligible under this section for any 
        fiscal year on the basis of 1 or more of those former 
        districts, as designated by the local educational agency.
            ``(2) Eligible local educational agencies.--A local 
        educational agency referred to in paragraph (1) is--
                    ``(A) any local educational agency that, for fiscal 
                year 1994 or any preceding fiscal year, applied, and 
                was determined to be eligible under, section 2(c) of 
                the Act of September 20, 1950 (Public Law 874, 81st 
                Congress), as that section was in effect for that 
                fiscal year; or
                    ``(B) a local educational agency formed by the 
                consolidation of 2 or more districts, at least 1 of 
                which was eligible for assistance under this section 
                for the fiscal year preceding the year of the 
                consolidation, if--
                            ``(i) for fiscal years 2006 through 2013, 
                        the local educational had notified the 
                        Secretary of the designation not later than 30 
                        days after the date of enactment of the Local 
                        Taxpayer Relief Act; and
                            ``(ii) for fiscal year 2014 and any 
                        subsequent fiscal year, the local educational 
                        agency includes the designation in its 
                        application under section 8005 or any timely 
                        amendment to such application.
            ``(3) Availability of funds.--Notwithstanding any other 
        provision of law limiting the period during which the Secretary 
        may obligate funds appropriated for any fiscal year after 2005, 
        the Secretary may obligate funds remaining after final payments 
        have been made from any of such fiscal years to carry out this 
        subsection.'';
            (5) in subsection (h)--
                    (A) in paragraph (1)--
                            (i) in the paragraph heading, by striking 
                        ``For pre-1995 recipients'' and inserting ``For 
                        pre-2010 recipients''; and
                            (ii) by striking subparagraphs (A) and (B) 
                        and inserting the following:
                    ``(A) In general.--The Secretary shall first make a 
                foundation payment to each local educational agency 
                that is determined by the Secretary to be eligible to 
                receive a payment under this section for the fiscal 
                year involved and that filed a timely application, and 
                met, or has been determined by statute to meet, the 
                eligibility requirements of subsection (a) for fiscal 
                year 2009.
                    ``(B) Amount.--
                            ``(i) In general.--The amount of a payment 
                        under subsection (b) for a local educational 
                        agency shall be equal to the greater of 90 
                        percent of the payment the local educational 
                        agency received from dollars appropriated for 
                        fiscal year 2009 or 90 percent of the average 
                        payment that the local educational agency 
                        received from dollars appropriated for fiscal 
                        years 2006, 2007, 2008, and 2009, and shall be 
                        calculated without regard to the provisions in 
                        subsection (b)(1)(A)(i)(III) or (b)(1)(C).
                            ``(ii) Exception.--In calculating such 
                        average payment for a local educational agency 
                        that did not receive a payment under subsection 
                        (b) for 1 or more of the fiscal years between 
                        fiscal year 2006 and 2009, inclusive, the 
                        lowest such payment made to the agency for 
                        fiscal year 2006, 2007, 2008, or 2009, shall be 
                        treated as the payment that the agency received 
                        under subsection (b) for each fiscal year for 
                        which the agency did not receive such a 
                        payment.''; and
                    (B) by striking paragraphs (2) through (4) and 
                inserting the following:
            ``(2) Foundation payments for new applicants.--
                    ``(A) First year.--From any amounts remaining after 
                making payments under paragraph (1) and subsection 
                (i)(1) for the fiscal year involved, the Secretary 
                shall make a payment in an amount determined in 
                accordance with subparagraph (C), to each local 
                educational agency that the Secretary determines 
                eligible for a payment under this section for a fiscal 
                year after fiscal year 2009 and that did not receive a 
                payment under paragraph (1) for the fiscal year for 
                which such agency was determined eligible for such 
                payment.
                    ``(B) Second and succeeding years.--For any 
                succeeding fiscal year after the first fiscal year that 
                a local educational agency receives a foundation 
                payment under subparagraph (A), the amount of the local 
                educational agency's foundation payment under this 
                paragraph for such succeeding fiscal year shall be 
                equal to the local educational agency's foundation 
                payment under this paragraph for the first fiscal year.
                    ``(C) Amounts.--The amount of a payment under 
                subparagraph (A) for a local educational agency shall 
                be determined as follows:
                            ``(i) Calculate the local educational 
                        agency's maximum payment under subsection (b).
                            ``(ii) Calculate the percentage that the 
                        amount appropriated under section 8014(a) for 
                        the most recent fiscal year for which the 
                        Secretary has completed making payments under 
                        this section is of the total maximum payments 
                        for such fiscal year for all local educational 
                        agencies eligible for a payment under 
                        subsection (b) and multiply the agency's 
                        maximum payment by such percentage.
                            ``(iii) Multiply the amount determined 
                        under clause (ii) by 90 percent.
                    ``(D) Insufficient funds.--If the amount 
                appropriated under section 8014(a) of this title is 
                insufficient to pay the full amount determined under 
                this paragraph for all eligible local educational 
                agencies for this fiscal year, then the Secretary shall 
                ratably reduce the payment to each local educational 
                agency under this paragraph.
            ``(3) Remaining funds.--From any funds remaining after 
        making payments under paragraphs (1) and (2) for the fiscal 
        year involved, the Secretary shall make a payment to each local 
        educational agency that received a foundation payment under 
        paragraph (1) or (2) or subsection (i)(1), for the fiscal year 
        involved in an amount that bears the same relation to the 
        remainder as a percentage share determined for the local 
        educational agency (by dividing the maximum amount that the 
        agency is eligible to receive under subsection (b) by the total 
        of the maximum amounts for all such agencies) bears to the 
        percentage share determined (in the same manner) for all local 
        educational agencies eligible to receive a payment under this 
        section for the fiscal year involved, except that, for the 
        purpose of calculating a local educational agency's maximum 
        amount under subsection (b), data from the most current fiscal 
        year shall be used.
            ``(4) Data.--For each local educational agency that 
        received a payment under this section for fiscal year 2010 
        through the fiscal year in which the Local Taxpayer Relief Act 
        was enacted, the Secretary shall not make a payment under 
        paragraph (3) to a local educational agency that fails to 
        submit, within 60 days of the date the Secretary notified the 
        agency that the information is needed, the data necessary to 
        calculate the maximum amount of a payment under subsection (b) 
        for that local educational agency.'';
            (6) by striking subsections (k) and (m); and
            (7) by redesignating subsections (l) and (n) as subsections 
        (j) and (k), respectively.
    (b) Effective Date.--Notwithstanding the date of enactment of this 
Act, the amendments made by this section shall apply to applications 
submitted for fiscal year 2010 and all succeeding fiscal years.

SEC. 3. PAYMENTS FOR ELIGIBLE FEDERALLY CONNECTED CHILDREN.

    Section 8003 of that Act (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 those children enrolled in a distance 
                learning program not residing within the defined 
                boundaries of the agency),'';
                    (B) by striking paragraph (4) and inserting the 
                following:
            ``(4) Military installation and indian housing undergoing 
        renovation or rebuilding.--
                    ``(A) Military installation housing.--Beginning in 
                fiscal year 2014, in determining the amount of a 
                payment for a local educational agency for children 
                described in paragraph (1)(D)(i), the Secretary shall 
                consider those children as if they were children 
                described in paragraph (1)(B) if the Secretary 
                determines, on the basis of a certification provided to 
                the Secretary of Defense, that those children would 
                have resided in housing on Federal property if the 
                housing was not undergoing renovation or rebuilding. 
                The total number of children treated as children 
                described in paragraph (1)(B) shall not exceed the 
                lessor of--
                            ``(i) the total number of children eligible 
                        under paragraph (1)(B) for the year prior to 
                        the initiation of the housing project on 
                        Federal property undergoing renovation or 
                        rebuilding; or
                            ``(ii) the total number of federally 
                        connected children enrolled in the local 
                        educational agency as stated in the application 
                        filed for the payment for the year for which 
                        the determination is made.
                    ``(B) Indian lands.--Beginning in fiscal year 2014, 
                in determining the amount of a payment for a local 
                educational agency that received a payment for children 
                that resided on Indian lands in accordance with 
                paragraph (1)(C) for the fiscal year prior to the 
                fiscal year for which the local educational agency is 
                making an application, the Secretary shall consider 
                those children to be children described in paragraph 
                (1)(C) if the Secretary determines on the basis of 
                certification provided to the Secretary by a designated 
                representative of the Secretary of the Interior or the 
                Secretary of Housing and Urban Development that those 
                children would have resided in housing on Indian lands 
                if the housing was not undergoing renovation or 
                rebuilding. The total number of children treated as 
                children described in paragraph (1)(C) shall not exceed 
                the lessor of--
                            ``(i) the total number of children eligible 
                        under paragraph (1)(C) for the year prior to 
                        the initiation of the housing project on Indian 
                        lands undergoing renovation or rebuilding; or
                            ``(ii) the total number of federally 
                        connected children enrolled in the local 
                        educational agency as stated in the application 
                        filed for the payment for the year for which 
                        the determination is made.
                    ``(C) Eligible housing.--Renovation or rebuilding 
                shall be defined as projects considered as 
                capitalization, modernization, or restoration, as 
                defined by the Secretary of Defense or the Secretary of 
                the Interior (as the case may be) and are projects that 
                last more than 30 days, but do not include `sustainment 
                projects' such as painting, carpeting, or minor 
                repairs.''; and
                    (C) in paragraph (5)(A), by striking ``1984, to be 
                children described under paragraph (1)(B) if the 
                property described is within the fenced security 
                perimeter of the military facility upon which such 
                housing is situated.'' and inserting ``1984, or under 
                lease of off-base property under subchapter IV of 
                chapter 169 of part IV of subtitle (A) of title 10 of 
                the United States Code (10 U.S.C. 2871 et seq.) to be 
                children described under paragraph (1)(B) if the 
                property described is within the fenced security 
                perimeter of the military facility or attached to and 
                under any type of force protection agreement with the 
                military installation where such housing is 
                situated.'';
            (2) in subsection (b)--
                    (A) in paragraph (2)--
                            (i) 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 2013 
                                                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 was eligible for and 
                                received a payment under this paragraph 
                                in fiscal year 2012 and--
                                            ``(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.'';
                                    (III) by amending clause (ii) to 
                                read as follows:
                            ``(ii) Loss of eligibility.--
                                    ``(I) In general.--Subject to 
                                subclause (II), a heavily impacted 
                                local educational 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.--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 2 
                                consecutive years shall lose its 
                                eligibility and be subject to subclause 
                                (I).'';
                                    (IV) by amending clause (iii) to 
                                read as follows:
                            ``(iii) Application.--With respect to the 
                        first year for which a heavily impacted local 
                        educational agency described in clause (i) 
                        applies for a basic support payment under 
                        subparagraph (A), or with respect to the first 
                        fiscal year for which a heavily impacted local 
                        educational agency applies for a basic support 
                        payment under subparagraph (A) after becoming 
                        ineligible under clause (i) for 1 or more 
                        preceding fiscal years, the agency shall apply 
                        for such payment at least 1 year prior to the 
                        start of that fiscal year.''; and
                                    (V) by adding the following after 
                                clause (iii):
                            ``(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.'';
                            (ii) 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 subparagraph (D) or (E) (or a 
                        combination thereof) of subsection (a)(1), and 
                        has 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, the Secretary shall 
                        calculate the weighted student units of those 
                        children described in subparagraph (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 in 
                        fiscal year 2012, 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.'';
                            (iii) 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 subparagraphs (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 
                subparagraphs (A) and (B) of subsection (a)(1) shall be 
                1.35.'';
                            (iv) by striking subparagraph (E);
                            (v) by redesignating subparagraph (F) as 
                        subparagraph (E);
                            (vi) in subparagraph (E) (as so 
                        redesignated by clause (v))--
                                    (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'';
                            (vii) by redesignating subparagraph (G) as 
                        subparagraph (F);
                            (viii) in subparagraph (F) (as so 
                        redesignated by clause (vii)), in the matter 
                        preceding clause (i), by striking 
                        ``(C)(i)(II)(bb)'' and inserting 
                        ``(B)(i)(II)(bb)(BB)'';
                            (ix) by redesignating subparagraph (H) as 
                        subparagraph (G); and
                            (x) in subparagraph (G) (as so redesignated 
                        by clause (ix))--
                                    (I) in clause (i)--
                                            (aa) by striking ``(B), 
                                        (C), (D). or (E),'' and 
                                        inserting ``(B), (C), or 
                                        (D),'';
                                            (bb) by striking ``by 
                                        reason of'' and inserting ``due 
                                        to'';
                                            (cc) 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
                                            (dd) 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)'';
                    (B) in paragraph (3)--
                            (i) in subparagraph (B)--
                                    (I) by redesignating clause (iv) as 
                                clause (v); and
                                    (II) 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).'';
                            (ii) in subparagraph (C), by striking ``or 
                        (E) of paragraph (2), as the case may be'' and 
                        inserting ``of paragraph (2)''; and
                            (iii) by striking subparagraph (D) and 
                        inserting the following:
                    ``(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.'';
            (3) 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--
                    ``(A) is newly established by a State, for the 
                first year of operation of such agency only;
                    ``(B) was eligible to receive a payment under this 
                section for the previous fiscal year and has had an 
                overall increase in enrollment (as determined by the 
                Secretary in consultation with the Secretary of 
                Defense, the Secretary of Interior or other Federal 
                agencies)--
                            ``(i) of not less than 10 percent, or 100 
                        students, of children described in--
                                    ``(I) subparagraph (A), (B), (C), 
                                or (D) of subsection (a)(1); or
                                    ``(II) subparagraph (F) or (G) of 
                                subsection (a)(1), but only to the 
                                extent such children are civilian 
                                dependents of employees of the 
                                Department of Defense or the Department 
                                of Interior; and
                            ``(ii) that is the direct result of closure 
                        or realignment of military installations under 
                        the base closure process or the relocation of 
                        members of the Armed Forces and civilian 
                        employees of the Department of Defense as part 
                        of force structure changes or movements of 
                        units or personnel between military 
                        installations or because of actions initiated 
                        by the Secretary of Interior or head of another 
                        Federal agency; and
                    ``(C) was eligible to receive a payment under this 
                section for the previous fiscal year and has had an 
                overall increase in enrollment (as determined by the 
                Secretary)--
                            ``(i) of not less than 10 percent, or 100 
                        students, of children described in subsection 
                        (a)(1); and
                            ``(ii) that is the direct result of the 
                        closure of a local educational agency that 
                        received a payment under subsection (b)(1) or 
                        (b)(2) in the previous fiscal year.'';
            (4) by amending subsection (e) to read as follows:
    ``(e) Hold Harmless.--
            ``(1) In general.--Subject to paragraph (2) the total 
        amount the Secretary shall pay a local education agency under 
        subsection (b)--
                    ``(A) for fiscal year 2014 shall not be less than 
                95 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 2013;
                    ``(B) for fiscal year 2015 shall not be less than 
                90 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 2013; and
                    ``(C) for fiscal year 2016 shall not be less than 
                85 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 2013.
            ``(2) Maximum payment.--The total amount provided to a 
        local educational agency under subparagraph (A), (B), or (C) of 
        paragraph (1) for a fiscal year shall not exceed the maximum 
        basic support amount for such agency determined under paragraph 
        (1) or (2) of subsection (b), as the case may be.
            ``(3) 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 such 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
            (5) by striking subsection (g).

SEC. 4. APPLICATION FOR PAYMENTS UNDER SECTIONS 8002 AND 8003.

    Section 8005 of that Act (20 U.S.C. 7705) is amended by adding at 
the end the following:
    ``(e) Student Count.--For the purpose of meeting the requirements 
of section 222.35 of the Code of the Federal Regulations, the Secretary 
shall establish a third option for an applicant when counting its 
federally connected children by using the date established by the 
applicant to register the students of such applicant for the fiscal 
year for which the application is filed.''.

SEC. 5. CONSTRUCTION.

    Section 8007 of that Act (20 U.S.C. 7707) is amended--
            (1) in subsection (a)--
                    (A) in paragraph (1), by striking ``40 percent'' 
                and inserting ``80 percent'';
                    (B) in paragraph (2) by adding at the end the 
                following:
                    ``(C) The agency is eligible under section 
                8003(b)(2) or is receiving a basic support payment 
                under circumstances described in section 
                8003(b)(2)(B)(ii).''; and
                    (C) by striking paragraph (3) and inserting the 
                following:
            ``(3) Amount of payments.--
                    ``(A) Local educational agencies impacted by 
                military dependent children.--The amount of a payment 
                to each local educational agency described in this 
                subsection that is impacted by military dependent 
                children for a fiscal year shall be equal to--
                            ``(i)(I) 40 percent of the amount 
                        appropriated under section 8014(e) for such 
                        fiscal year; divided by
                            ``(II) the number of children described in 
                        subparagraphs (B) and (D)(i) of section 
                        (8003)(a)(1) who were in average daily 
                        attendance for all local educational agencies 
                        described in paragraph (2), including the 
                        number of children attending a school facility 
                        described in section 8008(a) if the Secretary 
                        does not provide assistance for the school 
                        facility under that section for the fiscal 
                        year; multiplied by
                            ``(ii) the number of children determined 
                        for such agency;
                                    ``(I) but not less than $25,000, 
                                except that this subparagraph shall not 
                                apply if the amount available to carry 
                                out paragraph (1) for such fiscal year 
                                is less than $32,000,000; and
                                    ``(II) not more than $4,000,000.
                    ``(B) Local educational agencies impacted by 
                children who reside on indian lands.--The amount of a 
                payment to each local educational agency described in 
                this subsection that is impacted by children who reside 
                on Indian lands for a fiscal year shall be equal to--
                            ``(i)(I) 40 percent of the amount 
                        appropriated under section 8014(e) for such 
                        fiscal year; divided by
                            ``(II) the number of children described in 
                        section 8003(a)(1)(C) who were in average daily 
                        attendance for all local educational agencies 
                        described in paragraph (2); multiplied by
                            ``(ii) the number of children determined 
                        for such agency;
                                    ``(I) but not less than $25,000, 
                                except that this subparagraph shall not 
                                apply if the amount available to carry 
                                out paragraph (1) for such fiscal year 
                                is less than $32,000,000; and
                                    ``(II) not more than $4,000, 
                                000.''; and
            (2) in subsection (b)--
                    (A) in paragraph (1), in the matter preceding 
                subparagraph (A), by striking ``60 percent'' and 
                inserting ``20 percent'';
                    (B) in paragraph (3)--
                            (i) in subparagraph (A), in the matter 
                        preceding clause (i), by inserting after ``an 
                        emergency grant under paragraph (2)(A)'' the 
                        following: ``if the agency is covered by 
                        paragraph (7), or'';
                            (ii) in subparagraph (C)(i)(I), by striking 
                        ``the agency meets at least one'' and all that 
                        follows through the period at the end and 
                        inserting ``the number of children determined 
                        under section 8003(a)(1)(C) for the agency for 
                        the preceding school year constituted at least 
                        40 percent of the total student enrollment in 
                        the schools of the agency during the preceding 
                        school year.'';
                            (iii) by striking subclause (II) of 
                        subparagraph (D)(ii) and inserting the 
                        following:
                                    ``(II) The number of children 
                                determined under section 8003(a)(1)(C) 
                                for the school for the preceding school 
                                year constituted at least 40 percent of 
                                the total student enrollment in the 
                                school during the preceding school 
                                year.'';
                    (C) in paragraph (4)(C), by striking ``(A), (B), 
                (C), and (D)'' and inserting ``(A) and (C)'';
                    (D) by redesignating paragraph (7) as paragraph 
                (8); and
                    (E) by inserting after paragraph (6) the following:
            ``(7) Special rule.--Notwithstanding paragraphs 
        (3)(C)(i)(I) and (3)(D)(ii)(II), a local educational agency is 
        eligible to receive a grant under this subsection not to exceed 
        $4,000,000 in any one fiscal year if such agency--
                    ``(A) was eligible to receive a payment under 
                section 8003 for the fiscal year prior to the year for 
                which the application is made; and
                    ``(B) has had an overall increase in enrollment--
                            ``(i) during the period between the end of 
                        the school year preceding the fiscal year for 
                        which the application is made and the beginning 
                        of the school year immediately preceding that 
                        school year;
                            ``(ii) of not less than 250 students or 10 
                        percent (whichever is lower), of children 
                        described in--
                                    ``(I) subparagraph (A), (B), (C), 
                                or (D) of section 8003(a)(1); or
                                    ``(II) subparagraph (F) or (G) of 
                                section 8003(a)(1), but only to the 
                                extent such children are civilian 
                                dependents of employees of the 
                                Department of Defense; and
                            ``(iii) that is the direct result of one or 
                        more of the following:
                                    ``(I) Base realignment and closure 
                                or global rebasing, as determined by 
                                the Secretary of Defense.
                                    ``(II) Force structure changes or 
                                force reductions.
                                    ``(III) An action initiated by the 
                                Secretary of Interior or head of 
                                another Federal agency.''.

SEC. 6. STATE CONSIDERATION OF PAYMENTS IN PROVIDING STATE AID.

    Section 8009 of that Act (20 U.S.C. 7709) is amended--
            (1) in subsection (b)--
                    (A) in paragraph (1), by inserting before the 
                period at the end the following: ``and for which the 
                average per pupil expenditure is equal to or greater 
                than the average per pupil expenditure of all the 
                States in the third fiscal year preceding the fiscal 
                year for which the State is applying for equalization 
                under the section''; and
                    (B) by amending paragraph (2) to read as follows:
            ``(2) Computation.--
                    ``(A) State currently qualifying.--For purposes of 
                paragraph (1), a program of State aid for any State 
                qualifying under this section for fiscal year 2006 
                equalizes expenditures among local educational agencies 
                if, in the second fiscal year preceding the fiscal year 
                for which the determination is made the amount of per-
                pupil expenditures made by, or per-pupil revenues 
                available to, the local educational agency in the State 
                with the highest such per-pupil expenditures or 
                revenues did not exceed the amount of such per-pupil 
                expenditures made by, or per-pupil revenues available 
                to, the local educational agency in the State with the 
                lowest such expenditures or revenues by more than 25 
                percent as calculated under subparagraph (B)(ii).
                    ``(B) Other factors.--Notwithstanding regulations 
                in effect prior to the enactment of this subparagraph, 
                in making a determination under this subparagraph, the 
                Secretary shall--
                            ``(i) arrange all local educational 
                        agencies in the State by per-pupil expenditures 
                        or revenues in descending order from the 
                        highest to the lowest;
                            ``(ii) using per-pupil expenditures or 
                        revenues as the only criteria disregard those 
                        local educational agencies that are spending 
                        above the 95th percentile and those spending 
                        below the 5th percentile;
                            ``(iii) identify the local educational 
                        agency at the 95th percentile and the local 
                        educational agency at the 5th percentile;
                            ``(iv) subtract the amount of per-pupil 
                        expenditures or revenues of the local 
                        educational agency at the 5th percentile from 
                        the amount of per-pupil expenditures or 
                        revenues of the local educational agency at the 
                        95th percentile and divide the difference by 
                        the per-pupil expenditures or revenues of the 
                        local educational agency at the 5th percentile; 
                        and
                            ``(v) take into account the extent to which 
                        a program of State aid reflects the additional 
                        cost of providing free public education in 
                        particular types of local educational agencies 
                        such as those that are geographically isolated, 
                        or to particular types of students, such as 
                        children with disabilities.
                    ``(C) New states applicants.--
                            ``(i) In general.--For purposes of 
                        paragraph (1), a program of State aid for any 
                        State equalizing under this section after 
                        fiscal year 2006 equalizes expenditures among 
                        local educational agencies if, in the second 
                        fiscal year preceding the fiscal year for which 
                        the determination is made, the amount of per-
                        pupil expenditures made by, or per-pupil 
                        revenues available to, the local educational 
                        agency in the State with the highest such per-
                        pupil expenditures or revenues did not exceed 
                        the amount of such per-pupil expenditures made 
                        by, or per-pupil revenues available to, the 
                        local educational agency in the State with the 
                        lowest such expenditures or revenues by more 
                        than 10 percent as calculated under clause 
                        (ii).
                            ``(ii) Other factors.--In making a 
                        determination under this subparagraph, the 
                        Secretary, notwithstanding regulations in use 
                        prior to the enactment of the Local Taxpayer 
                        Relief Act, shall--
                                    ``(I) arrange all local educational 
                                agencies in the State by per pupil 
                                expenditures or revenues in descending 
                                order from the highest to the lowest;
                                    ``(II) using per-pupil expenditures 
                                or revenues as the only criteria 
                                disregard those local educational 
                                agencies that are spending above the 
                                95th percentile and those spending 
                                below the 5th percentile;
                                    ``(III) identify the local 
                                educational agency at the 95th 
                                percentile and the local educational 
                                agency at the 5th percentile;
                                    ``(IV) subtract the amount of per-
                                pupil expenditures or revenues of the 
                                local educational agency at the 5th 
                                percentile from the amount of per-pupil 
                                expenditures or revenues of the local 
                                educational agency at the 95th 
                                percentile and divide the difference by 
                                the per-pupil expenditures or revenues 
                                of the local educational agency at the 
                                5th percentile; and
                                    ``(V) take into account the extent 
                                to which a program of State aid 
                                reflects the additional cost of 
                                providing free public education in 
                                particular types of local educational 
                                agencies, such as those that are 
                                geographically isolated, or to 
                                particular types of students, such as 
                                children with disabilities.''; and
            (2) in subsection (d)(2)--
                    (A) by striking ``A State'' and inserting the 
                following:
                    ``(A) In general.--A State''; and
                    (B) by adding at the end of the following:
                    ``(B) States that are not equalized states.--A 
                State that has not been approved as an equalized State 
                under subsection (b) shall not consider funds received 
                under section 8002 or section 8003 of this title in any 
                State formula or place a limit or direct the use of 
                such funds or consider such funds.''.

SEC. 7. TIMELY PAYMENTS.

    Section 8010 of the Elementary and Secondary Education Act of 1965 
(20 U.S.C. 7710) is amended by adding at the end the following:
    ``(d) Timely Payments.--
            ``(1) In general.--Subject to paragraph (2) the Secretary 
        shall pay a local educational agency the full amount that the 
        agency is eligible to receive under this title for a fiscal 
        year not later than September 30 of the fiscal year following 
        the fiscal year in which such amount has been appropriated if, 
        not later than 1 calendar year following the fiscal year in 
        which such amount has been appropriated, each local educational 
        agency that is eligible to receive funds under this title for 
        such fiscal year submits to the Secretary all the data and 
        information necessary for the Secretary to pay the full amount 
        that the agency is eligible to receive under this title for 
        such fiscal year.
            ``(2) Payments with respect to fiscal years in which 
        insufficient funds are appropriated.--For a fiscal year in 
        which the amount appropriated under section 8014 is 
        insufficient to pay the full amount a local educational agency 
        is eligible to receive under this title, paragraph (1) shall be 
        applied by substituting `is available to pay the agency' for 
        `the agency is eligible to receive' each place it appears.''.

SEC. 8. DEFINITIONS.

    Section 8013 of that Act (20 U.S.C. 7713) is amended--
            (1) in paragraph (1) by striking ``and Marine Corps'' and 
        inserting ``Marine Corps, and Coast Guard'';
            (2) in paragraph (4)--
                    (A) in the first sentence thereof, by striking 
                ``part A of title I and title VI'' and inserting 
                ``title I and part A of title V''; and
                    (B) in the second sentence, by striking ``be 
                determined'' and inserting ``be made'';
            (3) in paragraph (5)(A)--
                    (A) in clause (ii)--
                            (i) in subclause (IV), by striking ``; or'' 
                        and inserting a semicolon;
                            (ii) in subclause (V), by inserting ``or'' 
                        after the semicolon; and
                            (iii) by adding at the end the following:
                                    ``(VI) exempt of taxation real 
                                property and personal property 
                                identified by a local governmental 
                                entity, including State government, if 
                                upon such property resides a child 
                                whose parents or guardians are 
                                certified to live on such property is 
                                considered to meet the eligibility 
                                requirements of section 151.4 of part 
                                150 of subchapter H of title 25, Code 
                                of Federal Regulations;''; and
                    (B) in clause (iii)--
                            (i) by amending subsclause (II) to read as 
                        follows:
                                    ``(II) used to provide housing for 
                                homeless children at closed military 
                                installations pursuant to section 501 
                                of the McKinney-Vento Homeless 
                                Assistance Act (42 U.S.C. 11411);''; 
                                and
                            (ii) by amending subclause (III) to read as 
                        follows:
                                    ``(III) used for affordable housing 
                                assisted under the Native American 
                                Housing Assistance and Self-
                                Determination Act of 1996 (25 U.S.C. 
                                4101 et.seq.); or'';
            (4) in paragraph (8)(A), by inserting commas before and 
        after ``and verified by''; and
            (5) in paragraph (9)--
                    (A) by amending subparagraph (A) to read as 
                follows:
                    ``(A) In general.--Except as provided in 
                subparagraph (B), the term `local educational agency'--
                            ``(i) means a board of education or other 
                        legally constituted local school authority 
                        having administrative control and direction of 
                        free public education in a county, township, 
                        independent school district, or other school 
                        district; and
                            ``(ii) includes any State agency that 
                        directly operates and maintains facilities for 
                        providing free public education; and that 
                        except for those local educational agencies 
                        determined to be eligible to receive a payment 
                        under section 8003 prior to the date of the 
                        enactment of the Local Taxpayer Relief Act, 
                        when submitting an application under this title 
                        for the first time on or after the date of the 
                        enactment of such Act, has the authority to tax 
                        and has boundaries as defined by applicable 
                        State law for the purposes of levying such 
                        taxes, or has been granted the authority to 
                        receive an imputed tax from a city, county, 
                        township, or other general purpose political 
                        subdivision of a State.''; and
                    (B) in subparagraph (B), in the matter preceding 
                clause (i), by inserting a comma after ``Secretary 
                determines''.

SEC. 9. AUTHORIZATION OF APPROPRIATIONS.

    Section 8014 of that Act (20 U.S.C. 7714) is amended--
            (1) in subsection (a), by striking ``$32,000,000 for fiscal 
        year 2000 and such sums as may be necessary for each of the 
        seven succeeding fiscal years'' and inserting ``such sums as 
        may be necessary for fiscal years 2014 through 2017'';
            (2) in subsection (b), by striking ``$809,400,000 fiscal 
        year 2000 and such sums as may be necessary for each of the 
        seven succeeding fiscal years'' and inserting ``such sums as 
        may be necessary for fiscal years 2014 through 2017'';
            (3) in subsection (c), by striking ``$50,000,000 for fiscal 
        year 2000 and such sums as may be necessary for each of the 
        seven succeeding fiscal years'' and inserting ``such sums as 
        may be necessary for fiscal years 2014 through 2017'';
            (4) by redesignating subsection (e) as subsection (d);
            (5) in subsection (d) (as so redesignated by paragraph 
        (4)), by striking ``$10,052,000 for fiscal year 2000 and such 
        sums as may be necessary for fiscal year 2001, $150,000,000 for 
        fiscal year 2002, and such sums as may be necessary for each of 
        the five succeeding fiscal years'' and inserting ``such sums as 
        may be necessary for fiscal years 2014 through 2017'';
            (6) by redesignating subsection (f) as subsection (e);
            (7) in subsection (e) (as so designated by paragraph (6)), 
        by striking ``$5,000,000 for fiscal year 2000 and such sums as 
        may be necessary for each of the seven succeeding fiscal 
        years'' and inserting ``such sums as may be necessary for 
        fiscal years 2014 through 2017''; and
            (8) by adding at the end of the following:
    ``(f) Allocation of Dollars From Previous Fiscal Years.--When final 
payments are made for a fiscal year the Secretary shall add any 
remaining funds to those funds appropriated for such section for the 
next fiscal year for the purpose of making payments subject to the 
provisions of the applicable section.''.

SEC. 10. ADDITIONAL AND CONFORMING AMENDMENTS.

    (a) Subpart 20 of Part D of Title V.--Subpart 20 (20 U.S.C. 7281 et 
seq.) of part D of title V of that Act (relating to additional 
assistance for certain local educational agencies impacted by Federal 
property acquisition) is repealed.
    (b) Title VIII.--Title VIII of Elementary and Secondary Education 
Act (20 U.S.C. 7701 et seq.) is further amended--
            (1) in section 8004 (20 U.S.C. 7704)--
                    (A) in subsection (e)(1)(B)(i), by striking 
                ``involved, or if'' and inserting ``involved or, if''; 
                and
                    (B) in subsection (f), by striking ``upon'' and 
                inserting ``on'';
            (2) in section 8008(a) (20 U.S.C. 7708(a)), by striking 
        ``section 8014(f)'' and inserting ``section 8014(e)'';
            (3) in section 8010 (20 U.S.C. 7710)--
                    (A) in subsection (b), by striking ``require'' and 
                inserting ``need''; and
                    (B) in subsection (c)(1)--
                            (i) in subparagraph (A), by striking 
                        ``paragraph (3)'' and inserting ``paragraph 
                        (2)''; and
                            (ii) in subparagraph (B), by striking 
                        ``paragraph (3)'' and inserting ``paragraph 
                        (2)''; and
            (4) in section 8011(a) (20 U.S.C. 7711 (a)), by striking 
        ``or under'' and all that follows through ``of 1994)''.
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