I
107TH CONGRESS
1ST SESSION
H. R. 3349
To amend the Elementary and Secondary Education Act of 1965 to ensure
fairness.
IN THE HOUSE OF REPRESENTATIVES
NOVEMBER 27, 2001
Mr. ACEVEDO-VILA´ introduced the following bill; which was referred to the
Committee on Education and the Workforce
A BILL
To amend the Elementary and Secondary Education Act
of 1965 to ensure fairness.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. BASIC GRANTS TO LOCAL EDUCATIONAL AGEN-
CIES.
Section 1124 of the Elementary and Secondary Edu-
cation Act of 1965 (20 U.S.C. 6333) is amended to read
as follows:
‘‘SEC. 1124. BASIC GRANTS TO LOCAL EDUCATIONAL AGEN-
CIES.
‘‘(a) AMOUNT OF GRANTS.—
‘‘(1) GRANTS FOR LOCAL EDUCATIONAL AGEN-
CIES
AND
PUERTO
RICO.—Except as provided in
paragraph (4) and in section 1126, the grant that
a local educational agency is eligible to receive under
this section for a fiscal year is the amount deter-
mined by multiplying—
‘‘(A) the number of children counted under
subsection (c); and
‘‘(B) 40 percent of the average per-pupil
expenditure in the State, except that the
amount determined under this subparagraph
shall not be less than 32 percent or more than
48 percent, of the average per-pupil expenditure
in the United States.
‘‘(2) CALCULATION OF GRANTS.—
‘‘(A) 
ALLOCATIONS
TO
LOCAL
EDU-
CATIONAL AGENCIES.—The Secretary shall cal-
culate grants under this section on the basis of
the number of children counted under sub-
section (c) for local educational agencies, unless
the Secretary and the Secretary of Commerce
determine that some or all of those data are un-
reliable or that their use would be otherwise in-
appropriate, in which case—
‘‘(i) the two Secretaries shall publicly
disclose the reasons for their determination
in detail; and
‘‘(ii) paragraph (3) shall apply.
‘‘(B) ALLOCATIONS TO LARGE AND SMALL
LOCAL EDUCATIONAL AGENCIES.—(i) For any
fiscal year in which this paragraph applies, the
Secretary shall calculate grants under this sec-
tion for each local educational agency.
‘‘(ii) The amount of a grant under this
section for each large local educational agency
shall be the amount determined under clause
(i).
‘‘(iii) For small local educational agencies,
the State educational agency may either—
‘‘(I) distribute grants under this sec-
tion in amounts determined by the Sec-
retary under clause (i); or
‘‘(II) use an alternative method ap-
proved by the Secretary to distribute the
portion of the State’s total grants under
this section that is based on those small
agencies.
‘‘(iv) An alternative method under clause
(iii)(II) shall be based on population data that
the State educational agency determines best
reflect the current distribution of children in
poor families among the State’s small local edu-
cational agencies that meet the eligibility cri-
teria of subsection (b).
‘‘(v) If a small local educational agency is
dissatisfied with the determination of its grant
by the State educational agency under clause
(iii)(II), it may appeal that determination to the
Secretary, who shall respond not later than 45
days after receipt of such appeal.
‘‘(vi) As used in this subparagraph—
‘‘(I) the term ‘large local educational
agency’ means a local educational agency
serving an area with a total population of
20,000 or more; and
‘‘(II) the term ‘small local educational
agency’ means a local educational agency
serving an area with a total population of
less than 20,000.
‘‘(3) ALLOCATIONS TO COUNTIES.—
‘‘(A) CALCULATION.—For any fiscal year
to which this paragraph applies, the Secretary
shall calculate grants under this section on the
basis of the number of children counted under
for approval that more accurately target
poverty.
‘‘(D) APPEAL.—The State educational
agency shall provide the Secretary an assurance
that it shall establish a procedure through
which a local educational agency that is dissat-
isfied with its determinations under subpara-
graph (B) may appeal directly to the Secretary
for a final determination.
‘‘(4) PUERTO RICO.—
‘‘(A) IN GENERAL.—For each fiscal year,
the grant which the Commonwealth of Puerto
Rico shall be eligible to receive under this sec-
tion shall be the amount determined by multi-
plying the number of children counted under
subsection (c) for the Commonwealth of Puerto
Rico by the product of—
‘‘(i) the percentage which the average
per-pupil expenditure in the Common-
wealth of Puerto Rico is of the lowest aver-
age per-pupil expenditure of any of the 50
States; and
‘‘(ii) 32 percent of the average per-
pupil expenditure in the United States.
‘‘(B) MINIMUM
PERCENTAGE.—The per-
centage in subparagraph (A)(i) shall not be less
than—
‘‘(i) for fiscal year 2002, 77.5 percent;
‘‘(ii) for fiscal year 2003, 80.0 per-
cent;
‘‘(iii) for fiscal year 2004, 82.5 per-
cent;
‘‘(iv) for fiscal year 2005, 85.0 per-
cent;
‘‘(v) for fiscal year 2006, 92.5 per-
cent; and
‘‘(vi) for fiscal year 2007 and suc-
ceeding fiscal years, 100 percent.
‘‘(C) LIMITATION.—If the application of
subparagraph (B) would result in any of the 50
States or the District of Columbia receiving less
under this part than it received under this part
for the preceding fiscal year, the percentage in
subparagraph (A) shall be the greater of the
percentage in subparagraph (A)(i) or the per-
centage used for the preceding fiscal year.
‘‘(5) DEFINITION.—For purposes of this sub-
section, the term ‘State’ does not include Guam,
American Samoa, the Virgin Islands, and the North-
ern Mariana Islands.
‘‘(b) MINIMUM NUMBER OF CHILDREN TO QUAL-
IFY.—A local educational agency is eligible for a basic
grant under this section for any fiscal year only if the
number of children counted under subsection (c) for that
agency is both—
‘‘(1) 10 or more; and
‘‘(2) more than 2 percent of the total school-age
population in the agency’s jurisdiction.
‘‘(c) CHILDREN TO BE COUNTED.—
‘‘(1) CATEGORIES OF CHILDREN.—The number
of children to be counted for purposes of this section
is the aggregate of—
‘‘(A) the number of children aged 5 to 17,
inclusive, in the school district of the local edu-
cational agency from families below the poverty
level as determined under paragraph (2);
‘‘(B) the number of children (determined
under paragraph (4) for either the preceding
year as described in that paragraph, or for the
second preceding year, as the Secretary finds
appropriate) aged 5 to 17, inclusive, in the
school district of such agency in institutions for
neglected and delinquent children (other than
such institutions operated by the United
States), but not counted pursuant to subpart 1
of part D for the purposes of a grant to a State
agency, or being supported in foster homes with
public funds; and
‘‘(C) the number of children aged 5 to 17,
inclusive, in the school district of such agency
from families above the poverty level as deter-
mined under paragraph (4).
‘‘(2) DETERMINATION
OF
NUMBER
OF
CHIL-
DREN.—For the purposes of this section, the Sec-
retary shall determine the number of children aged
5 to 17, inclusive, from families below the poverty
level on the basis of the most recent satisfactory
data, described in paragraph (3), available from the
Department of Commerce. The District of Columbia
and the Commonwealth of Puerto Rico shall be
treated as individual local educational agencies. If a
local educational agency contains two or more coun-
ties in their entirety, then each county will be treat-
ed as if such county were a separate local edu-
cational agency for purposes of calculating grants
under this part. The total of grants for such coun-
ties shall be allocated to such a local educational
agency, which local educational agency shall dis-
tribute to schools in each county within such agency
a share of the local educational agency’s total grant
that is no less than the county’s share of the popu-
lation counts used to calculate the local educational
agency’s grant.
‘‘(3) POPULATION
UPDATES.—In fiscal year
2001 and every 2 years thereafter, the Secretary
shall use updated data on the number of children,
aged 5 to 17, inclusive, from families below the pov-
erty level for local educational agencies or counties,
published by the Department of Commerce, unless
the Secretary and the Secretary of Commerce deter-
mine that use of the updated population data would
be inappropriate or unreliable. If the Secretary and
the Secretary of Commerce determine that some or
all of the data referred to in this paragraph are in-
appropriate or unreliable, they shall publicly disclose
their reasons. In determining the families which are
below the poverty level, the Secretary shall utilize
the criteria of poverty used by the Bureau of the
Census in compiling the most recent decennial cen-
sus, in such form as those criteria have been up-
dated by increases in the Consumer Price Index for
all urban consumers, published by the Bureau of
Labor Statistics.
‘‘(4) OTHER CHILDREN TO BE COUNTED.—For
the purposes of this section, the Secretary shall de-
termine the number of children aged 5 to 17, inclu-
sive, from families above the poverty level on the
basis of the number of such children from families
receiving an annual income, in excess of the current
criteria of poverty, from payments under a State
program funded under part A of title IV of the So-
cial Security Act; and in making such determina-
tions the Secretary shall utilize the criteria of pov-
erty used by the Bureau of the Census in compiling
the most recent decennial census for a family of 4
in such form as those criteria have been updated by
increases in the Consumer Price Index for all urban
consumers, published by the Bureau of Labor Statis-
tics. The Secretary shall determine the number of
such children and the number of children aged 5
through 17 living in institutions for neglected or de-
linquent children, or being supported in foster homes
with public funds, on the basis of the caseload data
for the month of October of the preceding fiscal year
(using, in the case of children described in the pre-
ceding sentence, the criteria of poverty and the form
of such criteria required by such sentence which
were determined for the calendar year preceding
‘‘(d) STATE
MINIMUM.—Notwithstanding section
1122, the aggregate amount allotted for all local edu-
cational agencies within a State may not be less than the
lesser of—
‘‘(1) 0.25 percent of total grants under this sec-
tion; or
‘‘(2) the average of—
‘‘(A) one-quarter of 1 percent of the total
amount available for such fiscal year under this
section; and
‘‘(B) the number of children in such State
counted under subsection (c) in the fiscal year
multiplied by 150 percent of the national aver-
age per-pupil payment made with funds avail-
able under this section for that year.’’.
SEC. 2. STATE ALLOCATIONS.
Section 1303 of the Elementary and Secondary Edu-
cation Act of 1965 (20 U.S.C. 6393) is amended—
(1) by amending subsection (a) to read as fol-
lows:
‘‘(a) STATE ALLOCATIONS.—
‘‘(1) FISCAL YEAR 2002.—For fiscal year 2002,
each State (other than the Commonwealth of Puerto
Rico) is entitled to receive under this part an
amount equal to—
‘‘(A) the sum of the estimated number of
migratory children aged 3 through 21 who re-
side in the State full time and the full-time
equivalent of the estimated number of migra-
tory children aged 3 through 21 who reside in
the State part time, as determined in accord-
ance with subsection (d); multiplied by
‘‘(B) 40 percent of the average per-pupil
expenditure in the State, except that the
amount determined under this paragraph shall
not be less than 32 percent, nor more than 48
percent, of the average expenditure per pupil in
the United States.
‘‘(2) SUBSEQUENT YEARS.—
‘‘(A) BASE AMOUNT.—
‘‘(i) IN
GENERAL.—Except as pro-
vided in subsection (b) and clause (ii), each
State (other than the Commonwealth of
Puerto Rico) is entitled to receive under
this part, for fiscal year 2003 and suc-
ceeding fiscal years, an amount equal to—
‘‘(I) the amount that such State
received under this part for fiscal year
2002; plus
‘‘(II) the amount allocated to the
State under subparagraph (B).
‘‘(ii) NONPARTICIPATING STATES.—In
the case of a State (other than the Com-
monwealth of Puerto Rico) that did not re-
ceive any funds for fiscal year 2002 under
this part, the State shall receive, for fiscal
year 2003 and succeeding fiscal years, an
amount equal to—
‘‘(I) the amount that such State
would have received under this part
for fiscal year 2002 if its application
under section 1304 for the year had
been approved; plus
‘‘(II) the amount allocated to the
State under subparagraph (B).
‘‘(B) 
ALLOCATION
OF
ADDITIONAL
AMOUNT.—For fiscal year 2003 and succeeding
fiscal years, the amount (if any) by which the
funds appropriated to carry out this part for
the year exceed such funds for fiscal year 2002
shall be allocated to a State (other than the
Commonwealth of Puerto Rico) so that the
State receives an amount equal to—
‘‘(i) the sum of—
‘‘(I) the number of identified eli-
gible migratory children, aged 3
through 21, residing in the State dur-
ing the previous year; and
‘‘(II) the number of identified eli-
gible migratory children, aged 3
through 21, who received services
under this part in summer or interses-
sion programs provided by the State
during such year; multiplied by
‘‘(ii) 40 percent of the average per-
pupil expenditure in the State, except that
the amount determined under this clause
may not be less than 32 percent, or more
than 48 percent, of the average per-pupil
expenditure in the United States.’’;
(2) by amending subsection (b) to read as fol-
lows:
‘‘(b) ALLOCATION TO PUERTO RICO.—
‘‘(1) IN GENERAL.—For each fiscal year, the
grant which the Commonwealth of Puerto Rico shall
be eligible to receive under this part shall be the
amount determined by multiplying the number of
children counted under subsection (a)(1)(A) for the
Commonwealth of Puerto Rico by the product of—