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[Congressional Bills 112th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1342 Introduced in House (IH)]

112th CONGRESS
  1st Session
                                H. R. 1342

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

_______________________________________________________________________

                    IN THE HOUSE OF REPRESENTATIVES

                             April 4, 2011

 Ms. Hirono (for herself and Mrs. Noem) introduced the following bill; 
   which was referred to the Committee on Education and the Workforce

_______________________________________________________________________

                                 A BILL

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

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``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)(1)(C), by amending the matter 
        preceding clause (i) to read as follows:
                    ``(C) had an assessed value according to original 
                records (including facsimiles or other reproductions of 
                those records) or other records that the Secretary 
                determines to be appropriate and reliable, including 
                Federal agency records or local historical records 
                aggregating 10 percent or more of the assessed value 
                of--'';
            (2) in subsection (b)--
                    (A) in paragraph (1), by adding at the end the 
                following:
            ``(D) Notwithstanding any other provision of this 
        subsection, a local educational agency may not be paid an 
        amount under this section that exceeds the total current 
        expenditures of the agency in the second prior fiscal year.'';
                    (B) by striking paragraph (2) and inserting the 
                following:
            ``(2) Determination of estimated assessed value for 
        eligible federal property.--
                    ``(A) In general.--Subject to subparagraph (B), in 
                determining the estimated taxable value of eligible 
                Federal property located within the boundaries of a 
                local educational agency for fiscal year 2010 and each 
                succeeding fiscal year, the Secretary shall--
                            ``(i) determine the total taxable value for 
                        the purpose of levying a property tax for 
                        school purposes for current expenditures of 
                        real property located within the boundaries of 
                        such local educational agency;
                            ``(ii) determine the per acre value of the 
                        eligible Federal property by dividing--
                                    ``(I) the total taxable value as 
                                determined in clause (i), by
                                    ``(II) the total acres located 
                                within the boundaries of the local 
                                educational agency minus the number of 
                                Federal acres eligible under this 
                                section; and
                            ``(iii) multiply the per acre value as 
                        calculated under clause (ii) by the number of 
                        Federal acres eligible under this section.
                    ``(B) Special rule.--In a case in which a local 
                educational agency shares eligible Federal property 
                with 2 or more local educational agencies, the local 
                educational agency may ask the Secretary to--
                            ``(i) calculate the per acre value of each 
                        such local educational agency in accordance 
                        with subparagraph (A); and
                            ``(ii) apply the average of the per acre 
                        values to the acres of the Federal property in 
                        that agency.''; and
                    (C) by striking paragraph (3) and inserting the 
                following:
            ``(3) 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 (2).'';
            (3) in subsection (f), by striking paragraphs (4) and (5);
            (4) by amending subsection (g) to read as follows:
    ``(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 in 
        such election.
            ``(2) Eligible local educational agencies.--A local 
        educational described in this paragraph is--
                    ``(A) any local educational agency that, for fiscal 
                year 1994 or any preceding fiscal year, applied for, 
                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 2011, 
                        the local educational agency notifies the 
                        Secretary of the designation made by the agency 
                        in the election described in paragraph (1) not 
                        later than 30 days after the date of enactment 
                        of the Local Taxpayer Relief Act; and
                            ``(ii) for fiscal year 2012 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) by amending subsection (h) to read as follows:
    ``(h) Payments With Respect to Fiscal Years in Which Insufficient 
Funds Are Appropriated.--For any fiscal year for which the amount 
appropriated under section 8014(a) is insufficient to pay to each 
eligible local educational agency the full amount determined under 
subsection (b), the Secretary shall make payments to each local 
educational agency under this section as follows:
            ``(1) Foundation payments.--
                    ``(A) In general.--From the amount appropriated 
                under section 8014(a), the Secretary shall first make 
                payments to the following local educational agencies:
                            ``(i) Each local educational agency that 
                        received a payment under this section for 
                        fiscal year 2006; and that was eligible for a 
                        payment under this section for fiscal year 
                        2006.
                            ``(ii) Each local educational agency that 
                        did not receive a payment under this section 
                        for fiscal year 2006 but was newly eligible for 
                        a payment under this section after fiscal year 
                        2006.
                    ``(B) Amount.--The amount of payment under 
                subparagraph (A) for a local educational shall be 
                determined as follows:
                            ``(i) For a local educational agency 
                        described in subparagraph (A)(i), the amount of 
                        payment shall be equal to 90 percent of the 
                        amount received by such local educational 
                        agency under subsection (b) for fiscal year 
                        2006.
                            ``(ii) For a local educational agency 
                        described in subparagraph (A)(ii) the amount of 
                        payment shall be determined by--
                                    ``(I) calculating a payment 
                                estimate for fiscal year 2006 under the 
                                same provisions and in the same manner 
                                as payments were determined for those 
                                local educational agencies eligible for 
                                and receiving payments for fiscal year 
                                2006; and
                                    ``(II) multiplying the amount 
                                determined under clause (i) by 90 
                                percent.
                    ``(C) Foundation payment.--The amount of payments 
                calculated under clauses (i) and (ii) of subparagraph 
                (B) shall be considered the agencies foundation 
                payments for each succeeding fiscal year.
                    ``(D) Insufficient appropriations.--If the amount 
                appropriated under section 8014(a) is insufficient to 
                pay the full amount determined under this paragraph for 
                all eligible local educational agencies for a fiscal 
                year, the Secretary shall ratably reduce the payment to 
                each local educational agency under this paragraph for 
                such fiscal year.
            ``(2) Remaining funds.--From any funds remaining after 
        making payments under paragraph (1) for a fiscal year, the 
        Secretary shall--
                    ``(A) sum the amounts determined under paragraph 
                (b)(2) for all eligible local educational agencies;
                    ``(B) determine each eligible local educational 
                agency's proportional share of the amount calculated 
                under subparagraph (A); and
                    ``(C) pay each eligible local educational agency 
                its share of the remaining funds based on the 
                proportion calculated under subparagraph (B).'';
            (6) by striking subsections (i), (k), and (m); and
            (7) by redesignating subsections (l) and (n) as subsections 
        (i) and (j), 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 children enrolled in a distance learning 
                program not residing within the geographic boundaries 
                of the agency),'';
                    (B) in paragraph (4)--
                            (i) by inserting ``rebuilding or authorized 
                        for demolition'' after ``renovation'' in each 
                        place it appears; and
                            (ii) in each of clauses (i)(I) and (ii) (I) 
                        of subparagraph (B), by striking ``3 fiscal 
                        years'' and inserting ``4 fiscal years (which 
                        are not required to run consecutively)''; and
                    (C) in paragraph (5)(A), by inserting after 
                ``1984,'' the following: ``or under lease of off-base 
                property under subchapter IV of chapter 169 of part IV 
                of subtitle A of title 10, United States Code (10 
                U.S.C. 2871 et. seq.),'';
            (2) subsection (b)(2)--
                    (A) in subparagraph (B)--
                            (i) in the subparagraph heading, by 
                        striking ``continuing'';
                            (ii) by amending clause (i) to read as 
                        follows:
                            ``(i) In general.--A heavily impacted local 
                        educational agency is eligible to receive a 
                        basic support payment under subparagraph (A) 
                        with respect to a number of children determined 
                        under subsection (a)(1) if the agency--
                                    ``(I) is a local educational agency 
                                whose boundaries are the same as a 
                                Federal military installation or the 
                                boundaries are the same as island 
                                property designated by the Secretary of 
                                the Interior to be property that is 
                                held in trust by the Federal Government 
                                and the agency has no taxing authority;
                                    ``(II) is a local educational 
                                agency--
                                            ``(aa) that has an 
                                        enrollment of children 
                                        described in subsection (a)(1) 
                                        that constitutes a percentage 
                                        of the total student enrollment 
                                        of the agency that is not less 
                                        than 45 percent;
                                            ``(bb) that has a per-pupil 
                                        expenditure that is less than--

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

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

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

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

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

                                    ``(III) is a local educational 
                                agency that has a total student 
                                enrollment of not less than 25,000 
                                students, of which not less than 50 
                                percent are children described in 
                                subsection (a)(1) and not less than 
                                5,500 of such children are children 
                                described in subparagraphs (A) and (B) 
                                of subsection (a)(1); or
                                    ``(IV) is a local educational 
                                agency that--
                                            ``(aa) has an enrollment of 
                                        children described in 
                                        subsection (a)(1) that 
                                        constitutes a percentage of the 
                                        total student enrollment of the 
                                        agency that is not less than 20 
                                        percent;
                                            ``(bb) for the 3 fiscal 
                                        years preceding the fiscal year 
                                        for which the determination is 
                                        made, the average enrollment of 
                                        children who are not described 
                                        in subsection (a)(1) and who 
                                        are eligible for a free or 
                                        reduced price lunch under the 
                                        Richard B. Russell National 
                                        School Lunch Act constitutes a 
                                        percentage of the total student 
                                        enrollment of the agency that 
                                        is not less than 65 percent; 
                                        and
                                            ``(cc) has a tax rate for 
                                        general fund purposes which is 
                                        not less than 1.25 percent of 
                                        the average tax rate for 
                                        general fund purposes for 
                                        comparable local educational 
                                        agencies in the State.''; and
                            (iii) by amending clause (ii) to read as 
                        follows:
                            ``(ii) Loss of eligibility.--
                                    ``(I) In general.--Subject to 
                                subclause (II), a heavily impacted 
                                local education agency that met the 
                                requirements of clause (i) for a fiscal 
                                year shall be ineligible to receive a 
                                basic support payment under 
                                subparagraph (A) if the agency fails to 
                                meet the requirements of clause (i) for 
                                a subsequent fiscal year, except that 
                                such agency shall continue to receive a 
                                basic support payment under this 
                                paragraph for the fiscal year for which 
                                the ineligibility determination is 
                                made.
                                    ``(II) Exception.--For a local 
                                educational agency that is eligible 
                                under subparagraph (A) but whose tax 
                                rate for general fund purposes falls 
                                below 95 percent of the average tax 
                                rate for general fund purposes of local 
                                educational agencies in the State for 
                                two consecutive years shall lose its 
                                eligibility and be subject to subclause 
                                (I).''; and
                            (iv) by adding at the end, the following:
                            ``(iv) Special rule.--Notwithstanding 
                        clause (i)(II), a local educational agency 
                        shall be considered eligible to receive a basic 
                        support payment under subparagraph (A) with 
                        respect to the number of children determined 
                        under subsection (a)(1) if the agency--
                                    ``(I) has an enrollment of children 
                                described in subsection (a)(1), 
                                including, for purposes of determining 
                                eligibility, those children described 
                                in subparagraphs (F) and (G) of such 
                                subsection, that constitutes a 
                                percentage of the total student 
                                enrollment of the agency that is not 
                                less than 35 percent; and
                                    ``(II) was eligible to receive 
                                assistance under subsection (b)(2) for 
                                fiscal year 2001.'';
                    (B) by amending subparagraph (C) to read as 
                follows:
                    ``(C) Maximum amount for heavily impacted local 
                educational agencies.--
                            ``(i) In general.--The maximum amount that 
                        a heavily impacted local educational agency is 
                        eligible to receive under this paragraph for 
                        any fiscal year is the sum of the total 
                        weighted student units, as computed under 
                        subsection (a)(2) and subject to clause (ii), 
                        multiplied by the greater of--
                                    ``(I) four-fifths of the average 
                                per-pupil expenditure of the State in 
                                which the local educational agency is 
                                located for the third fiscal year 
                                preceding the fiscal year for which the 
                                determination is made; or
                                    ``(II) four-fifths of the average 
                                per-pupil expenditure of all of the 
                                States for the third fiscal year 
                                preceding the fiscal year for which the 
                                determination is made.
                            ``(ii) Special rule.--(I)(aa) For a local 
                        educational agency with respect to which 35 
                        percent or more of the total student enrollment 
                        of the schools of the agency are children 
                        described in subparagraphs (D) or (E) (or a 
                        combination thereof) of subsection (a)(1), and 
                        has an enrollment of children described in 
                        subparagraphs (A), (B), or (C) of such 
                        subsection equal to at least 10 percent of the 
                        agency's total enrollment, the Secretary shall 
                        calculate the weighted student units of those 
                        children described in subparagraphs (D) or (E) 
                        of such subsection by multiplying the number of 
                        such children by a factor of 0.55.
                            ``(bb) For any local educational agency 
                        that received a payment under this clause for 
                        fiscal year 2006, the local educational agency 
                        shall not be required to have an enrollment of 
                        children described in subparagraph (A), (B), or 
                        (C) of such subsection equal to at least 10 
                        percent of the agency's total enrollment.
                            ``(II) For a local educational agency that 
                        has an enrollment of 100 or fewer children 
                        described in subsection (a)(1), the Secretary 
                        shall calculate the total number of weighted 
                        student units for purposes of subsection (a)(2) 
                        by multiplying the number of such children by a 
                        factor of 1.75.
                            ``(III) For a local educational agency that 
                        does not qualify under subparagraph (B)(i)(I) 
                        of this subsection and has an enrollment of 
                        more than 100 but not more than 1,000 children 
                        described in subsection (a)(1), the Secretary 
                        shall calculate the total number of weighted 
                        student units for purposes of subsection (a)(2) 
                        by multiplying the number of such children by a 
                        factor of 1.25.'';
                    (C) by amending subparagraph (D) to read as 
                follows:
                    ``(D) Maximum amount for large heavily impacted 
                local educational agencies.--(i)(I) Subject to clause 
                (ii), the maximum amount that a heavily impacted local 
                educational agency described in subclause (II) is 
                eligible to receive under this paragraph for any fiscal 
                year shall be determined in accordance with the formula 
                described in paragraph (1)(C).
                    ``(II) A heavily impacted local educational agency 
                described in this subclause is a local educational 
                agency that has a total student enrollment of not less 
                than 25,000 students, of which not less than 50 percent 
                are children described in subsection (a)(1) and not 
                less than 5,500 of such children are children described 
                in subparagraph (A) and (B) of subsection (a)(1).
                    ``(ii) For purposes of calculating the maximum 
                amount described in clause (i), the factor used in 
                determining the weighted student units under subsection 
                (a)(2) with respect to children described in 
                subparagraph (A) and (B) of subsection (a)(1) shall be 
                1.35.''.
                    (D) by striking subparagraph (E);
                    (E) by redesignating subparagraph (F) as 
                subparagraph (E);
                    (F) in subparagraph (E) (as so redesignated by 
                subparagraph (G))--
                            (i) by striking clause (ii);
                            (ii) by striking ``; and'' at the end of 
                        clause (i) and inserting a period; and
                            (iii) by striking ``the Secretary'' and all 
                        that follows through ``shall use'' and 
                        inserting ``the Secretary shall use'';
                    (G) by redesignating subparagraph (G) as 
                subparagraph (F);
                    (H) in subparagraph (F) (as so redesignated by 
                subparagraph (I)), in the matter preceding clause (i), 
                by striking ``(C)(i)(II)(bb)'' and inserting 
                ``(B)(i)(II)(bb)'';
                    (I) by redesignating subparagraph (H) as 
                subparagraph (G); and
                    (J) in subparagraph (G) (as so redesignated by 
                subparagraph (K))--
                            (i) in clause (i)--
                                    (I) by striking ``(B), (C), (D), or 
                                (E),'' and inserting ``(B), (C), or 
                                (D),'';
                                    (II) by striking ``by reason of'' 
                                and inserting ``due to'';
                                    (III) by inserting after ``clause 
                                (iii),'' the following: ``or as the 
                                direct result of base realignment and 
                                closure or modularization as determined 
                                by the Secretary of Defense and force 
                                structure change or force 
                                relocation,''; and
                                    (IV) by inserting before the period 
                                at the end the following: ``or during 
                                such time as activities associated with 
                                base closure and realignment, 
                                modularization, force structure change, 
                                or force relocation is ongoing''; and
                            (ii) in clause (ii) by striking ``(D) or 
                        (E)'' in both places such term appears and 
                        inserting ``(C) or (D)'';
            (3) in subsection (b)(3)(B)--
                    (A) by redesignating clause (iv) as clause (v); and
                    (B) by inserting after clause (iii) the following:
                            ``(iv) For any local educational agency 
                        that is providing a program of distant learning 
                        to children not residing within the geographic 
                        boundaries of the agency, the Secretary shall 
                        disregard such children from such agency's 
                        total enrollment when calculating the 
                        percentage under subclause (I) of clause (i) 
                        and shall disregard any funds received for such 
                        children when calculating the total current 
                        expenditures attributed to the operation of 
                        such agency when calculating the percentage 
                        under subclause (II) of clause (i).'';
            (4) in subsection (b)(3)(C) by striking ``or (E) of 
        paragraph (2), as the case may be'' and inserting ``of 
        paragraph (2)'';
            (5) by amending subsection (b)(3)(D) to read as follows:
                    ``(D) Ratable distribution.--For any fiscal year 
                described in subparagraph (A) for which the sums 
                available exceed the amount required to pay each local 
                educational agency 110 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 paragraphs (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 paragraphs (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 paragraphs (1) or (2) (as 
                        the case may be) for the agency and the amount 
                        of the threshold payment as calculated under 
                        subparagraphs (B) and (C) of the agency.'';
            (6) in subsection (c), by amending paragraph (2) to read as 
        follows:
            ``(2) Exception.--Calculation of payments for a local 
        educational agency shall be based on data from the fiscal year 
        for which the agency is making an application for payment if 
        such agency--
                    ``(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 the heads of 
                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 the 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 the head of 
                        another Federal agency; or
                    ``(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.'';
            (7) 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 2012, shall be not 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 2011;
                    ``(B) for fiscal year 2013, shall be not 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 2011; and
                    ``(C) for fiscal year 2014, shall be not 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 2011.
            ``(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 fiscal year, then the Secretary shall ratably 
                reduce the payments to all agencies for such year.
                    ``(B) Additional funds.--If additional funds become 
                available for making payments under paragraph (1) for 
                such fiscal year, payments that were reduced under 
                subparagraph (A) shall be increased on the same basis 
                as such payments were reduced.''; and
            (8) by striking subsection (g).

SEC. 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 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 education 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 
                the 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)(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'';
                    (C) in paragraph (3)(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.'';
                    (D) by striking paragraph (3)(D)(ii)(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.'';
                    (E) in paragraph (4)(C) by striking ``(A), (B), 
                (C), and (D)'' and inserting ``(A) and (C)'';
                    (F) by redesignating paragraph (7) as paragraph 
                (8); and
                    (G) 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), are children 
                        described in--
                                    ``(I) subparagraphs (A), (B), (C), 
                                or (D) of section 8003(a)(1); or
                                    ``(II) subparagraphs (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)(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 this section'';
            (2) by amending subsection (b)(2) to read as follows:
            ``(2) Computation.--
                    ``(A) State currently qualifying.--
                            ``(i) In general.--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 clause (ii).
                            ``(ii) Other factors.--Notwithstanding 
                        regulations in effect prior to the date of 
                        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.
                    ``(B) New states applicants.--
                            ``(i) In general.--For purposes of 
                        paragraph (1), a program of State aid for any 
                        State qualifying 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.--Notwithstanding 
                        regulations in effect prior to the date of 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.''; and
            (3) 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.''.

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 second 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)(iii)--
                    (A) by amending subclause (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
                    (B) 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 (5)(A), by adding at the end the 
        following:
                                    ``(VI) exempt from taxation of real 
                                property and personal property 
                                identified by a local governmental 
                                entity, including a 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 of the 
                                Code of Federal Regulations; or'';
            (5) in paragraph (8)(A), by inserting commas before and 
        after ``and verified by''; and
            (6) in paragraph (9)--
                    (A) by amending subparagraph (A) to read as 
                follows:
                    ``(A) In general.--Except as provided in 
                subparagraph (C), 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;
                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), 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 inserting ``$67,208,000 for fiscal year 2012'';
            (2) in subsection (b) by striking ``$809,400,000 for fiscal 
        year 2000'' and inserting ``$1,138,000,000 for fiscal year 
        2012'';
            (3) in subsection (c) by striking ``$50,000,000 for fiscal 
        year 2000'' and inserting ``$48,602,000 for fiscal year 2012'';
            (4) by redesignating subsection (e) as subsection (d);
            (5) in subsection (d) (as so redesignated by paragraph 4), 
        by striking ``$10,052,000'' and all that follows through ``and 
        such sums'' and inserting ``$17,509,000 for fiscal year 2012 
        and such sums'';
            (6) by redesignating subsection (f) as subsection (e);
            (7) in subsection (e) (as so redesignated by paragraph (6), 
        by striking ``$5,000,000 for fiscal year 2000'' and inserting 
        ``$4,864,000 for fiscal year 2012''; 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 out ``require'' 
                and inserting in lieu thereof ``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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