SECTION 1. SHORT TITLE.
This Act may be cited as the ‘‘Impact Aid Technical
Amendments Act of 1996’’.
SEC. 2. HOLD-HARMLESS AMOUNTS FOR PAYMENTS RELAT-
ING TO FEDERAL ACQUISITION OF REAL
PROPERTY.
(a) IN GENERAL.—Section 8002 of the Elementary
and Secondary Education Act of 1965 (20 U.S.C. 7702)
is amended by adding at the end the following new sub-
sections:
‘‘(g) FORMER DISTRICTS.—
‘‘(1) IN GENERAL.—Where the school district of
any local educational agency described in paragraph
(2) is formed at any time after 1938 by the consoli-
dation of two or more former school districts, such
agency may elect (at any time such agency files an
application under section 8005) for any fiscal year
to have (A) the eligibility of such local educational
agency, and (B) the amount which such agency shall
be eligible to receive, determined under this section
only with respect to such of the former school dis-
tricts comprising such consolidated school districts
as such agency shall designate in such election.
‘‘(2) ELIGIBLE
LOCAL
EDUCATIONAL
AGEN-
CIES.—A local educational agency referred to in
paragraph (1) is any local educational agency that,
for fiscal year 1994 or any preceding fiscal year, ap-
plied for and was determined eligible under section
2(c) of the Act of September 30, 1950 (Public Law
874, 81st Congress) as such section was in effect on
September 30, 1994.
‘‘(h) HOLD-HARMLESS AMOUNTS.—
‘‘(1) IN GENERAL.—Except as provided in para-
graph (2)(A), the total amount that the Secretary
shall pay a local educational agency that is otherwise
eligible under subsection (b)—
‘‘(A) for fiscal year 1995 shall not be less
than 85 percent of the amount such agency re-
ceived for fiscal year 1994 under section 2 of
the Act of September 30, 1950 (Public Law
874, 81st Congress) as such section was in ef-
fect on September 30, 1994; or
‘‘(B) for fiscal year 1996 shall not be less
than 85 percent of the amount such agency re-
ceived for fiscal year 1995 under subsection (b).
‘‘(2) RATABLE
REDUCTIONS.—(A)(i) If nec-
essary in order to make payments to local edu-
cational agencies in accordance with paragraph (1)
for any fiscal year, the Secretary first shall ratably
reduce payments under subsection (b) for such year
to local educational agencies that do not receive a
payment under this subsection for such year.
‘‘(ii) If additional funds become available for
making payments under subsection (b) for such
year, then payments that were reduced under clause
(i) shall be increased on the same basis as such pay-
ments were reduced.
‘‘(B)(i) If the sums made available under this
title for any fiscal year are insufficient to pay the
full amounts that all local educational agencies in all
States are eligible to receive under paragraph (1)
after the application of subparagraph (A) for such
year, then the Secretary shall ratably reduce pay-
ments under paragraph (1) to all such agencies for
such year.
‘‘(ii) If additional funds become available for
making payments under paragraph (1) for such fis-
cal year, then payments that were reduced under
clause (i) shall be increased on the same basis as
such payments were reduced.’’.
(b) EFFECTIVE DATE.—Subsection (g) of section
8002 of the Elementary and Secondary Education Act of
1965, as added by subsection (a), shall apply with respect
to fiscal years after fiscal year 1995.
SEC. 3. PAYMENTS FOR ELIGIBLE FEDERALLY CONNECTED
CHILDREN RESIDING ON MILITARY INSTAL-
LATION 
HOUSING 
UNDERGOING 
RENOVA-
TION.
(a) IN GENERAL.—Section 8003(a) of the Elemen-
tary and Secondary Education Act of 1965 (20 U.S.C.
7703(a)) is amended by adding at the end the following:
‘‘(4) MILITARY
INSTALLATION
HOUSING
UN-
DERGOING RENOVATION.—For purposes of comput-
ing the amount of a payment for a local educational
agency for children described in paragraph (1)(D)(i),
the Secretary shall consider such children to be chil-
dren described in paragraph (1)(B) if the Secretary
determines, on the basis of a certification provided
to the Secretary by a designated representative of
the Secretary of Defense, that such children would
have resided in housing on Federal property in ac-
cordance with paragraph (1)(B) except that such
housing was undergoing renovation on the date for
which the Secretary determines the number of chil-
dren under paragraph (1).’’.
(b) EFFECTIVE DATE.—Paragraph (4) of section
8003(a) of the Elementary and Secondary Education Act
of 1965, as added by subsection (a), shall apply with re-
spect to fiscal years after fiscal year 1995.
SEC. 4. COMPUTATION OF PAYMENTS FOR ELIGIBLE FED-
ERALLY CONNECTED CHILDREN IN STATES
WITH ONLY ONE LOCAL EDUCATIONAL AGEN-
CY.
(a) IN GENERAL.—Section 8003(b) of the Elemen-
tary and Secondary Education Act of 1965 (20 U.S.C.
7703(b)) is amended by adding at the end the following:
‘‘(3) STATES
WITH
ONLY
ONE
LOCAL
EDU-
CATIONAL AGENCY.—
‘‘(A) IN
GENERAL.—In any of the 50
States in which there is only one local edu-
cational agency, the Secretary shall, for pur-
poses of paragraphs (1)(C) and (2) of this sub-
section and subsection (e), consider each admin-
istrative school district in the State to be a sep-
arate local educational agency.
‘‘(B) COMPUTATION OF MAXIMUM AMOUNT
OF BASIC SUPPORT PAYMENT AND THRESHOLD
PAYMENT.—In computing the maximum pay-
ment amount under paragraph (1)(C) and the
learning opportunity threshold payment under
paragraph (2)(B) for an administrative school
district described in subparagraph (A)—
‘‘(i) the Secretary shall first deter-
mine the maximum payment amount and