I 
111TH CONGRESS 
1ST SESSION H. R. 3651 
To reauthorize the Impact Aid Program under the Elementary and Secondary 
Education Act of 1965. 
IN THE HOUSE OF REPRESENTATIVES 
SEPTEMBER 25, 2009 
Mr. BOREN introduced the following bill; which was referred to the Committee 
on Education and Labor 
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 Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Impact Aid Fairness 
and Equity Act of 2009’’. 
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SEC. 2. AMENDMENTS TO SECTION 8002 (PAYMENTS RELAT-
ING TO FEDERAL ACQUISITION OF REAL 
PROPERTY). 
Section 8002 of the Elementary and Secondary Edu-
cation Act of 1965 (20 U.S.C. 7702) is amended to read 
as follows: 
‘‘SEC. 8002. PAYMENTS RELATING TO FEDERAL ACQUISI-
TION OF REAL PROPERTY. 
‘‘(a) IN GENERAL.—Where the Secretary, after con-
sultation with any local educational agency and with the 
appropriate State educational agency, determines for a fis-
cal year ending prior to October 1, 2003— 
‘‘(1) that the United States owns Federal prop-
erty in the local educational agency, and that such 
property— 
‘‘(A) has been acquired by the United 
States since 1938; 
‘‘(B) was not acquired by exchange for 
other Federal property in the local educational 
agency which the United States owned before 
1939; and 
‘‘(C) had an assessed value (according to 
original records (including reproductions of 
those records) documenting the assessed value 
of such property (determined as of the time or 
times when so acquired) prepared by the local 
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official referred to in subsection (b)(3) or, when 
such original records are not available due to 
unintentional destruction (such as natural dis-
aster, fire, flooding, pest infestation, or deterio-
ration due to age), other records, including 
Federal agency records, local historical records, 
or other records that the Secretary determines 
to be appropriate and reliable) aggregating 10 
percent or more of the assessed value of— 
‘‘(i) all real property in the local edu-
cational agency (similarly determined as of 
the time or times when such Federal prop-
erty was so acquired); or 
‘‘(ii) all real property in the local edu-
cational agency as assessed in the first 
year preceding or succeeding acquisition, 
whichever is greater, only if— 
‘‘(I) the assessment of all real 
property in the local educational agen-
cy is not made at the same time or 
times that such Federal property was 
so acquired and assessed; and 
‘‘(II) State law requires an as-
sessment be made of property so ac-
quired; and 
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‘‘(2) that such agency is not being substantially 
compensated for the loss in revenue resulting from 
such ownership by increases in revenue accruing to 
the agency from the conduct of Federal activities 
with respect to such Federal property, then such 
agency shall be eligible to receive the amount de-
scribed in subsection (b). 
‘‘(b) AMOUNT.— 
‘‘(1) IN GENERAL.—(A)(i)(I) Subject to sub-
clauses (II) and (III), the amount that a local edu-
cational agency shall be paid under subsection (a) 
for a fiscal year shall be calculated in accordance 
with paragraph (2). 
‘‘(II) Except as provided in subclause (III), the 
Secretary may not reduce the amount of a payment 
under this section to a local educational agency for 
a fiscal year by (aa) the amount equal to the 
amount of revenue, if any, the agency received dur-
ing the previous fiscal year from activities conducted 
on Federal property eligible under this section and 
located in a school district served by the agency, in-
cluding amounts received from any Federal depart-
ment or agency (other than the Department of Edu-
cation) from such activities, by reason of receipt of 
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cent of its payment under this section for the prior 
fiscal year. 
‘‘(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 cur-
rent levied real property tax rate for current expend-
itures levied by fiscally independent local educational 
agencies, or imputed for fiscally dependent local edu-
cational agencies, to the current annually deter-
mined aggregate assessed value of such acquired 
Federal property. 
‘‘(3) DETERMINATION
OF
AGGREGATE
AS-
SESSED VALUE.—Such aggregate assessed value of 
such acquired Federal property shall be determined 
on the basis of the highest and best use of property 
adjacent to such acquired Federal property as of the 
time such value is determined, and provided to the 
Secretary, by the local official responsible for assess-
ing the value of real property located in the jurisdic-
tion of such local educational agency for the purpose 
of levying a property tax. 
‘‘(c) APPLICABILITY TO TENNESSEE VALLEY AU-
THORITY ACT.—For the purpose of this section, any real 
property with respect to which payments are being made 
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under section 13 of the Tennessee Valley Authority Act 
of 1933 shall not be regarded as Federal property. 
‘‘(d) OWNERSHIP BY UNITED STATES.—The United 
States shall be deemed to own Federal property for the 
purposes of this Act, where— 
‘‘(1) prior to the transfer of Federal property, 
the United States owned Federal property meeting 
the requirements of subparagraphs (A), (B), and (C) 
of subsection (a)(1); and 
‘‘(2) the United States transfers a portion of 
the property referred to in paragraph (1) to another 
nontaxable entity, and the United States— 
‘‘(A) restricts some or any construction on 
such property; 
‘‘(B) requires that the property be used in 
perpetuity for the public purposes for which the 
property was conveyed; 
‘‘(C) requires the grantee of the property 
to report to the Federal Government (or its 
agent) regarding information on the use of the 
property; 
‘‘(D) except with the approval of the Fed-
eral Government (or its agent), prohibits the 
sale, lease, assignment, or other disposal of the 
property unless such sale, lease, assignment, or 
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other disposal is to another eligible government 
agency; and 
‘‘(E) reserves to the Federal Government a 
right of reversion at any time the Federal Gov-
ernment (or its agent) deems it necessary for 
the national defense. 
‘‘(e) LOCAL EDUCATIONAL AGENCY CONTAINING 
FOREST SERVICE LAND AND SERVING CERTAIN COUN-
TIES.—Beginning with fiscal year 1995, a local edu-
cational agency shall be deemed to meet the requirements 
of subsection (a)(1)(C) if such local educational agency 
meets the following requirements: 
‘‘(1) ACREAGE AND ACQUISITION BY THE FOR-
EST SERVICE.—The local educational agency serves 
a school district that contains between 20,000 and 
60,000 acres of land that has been acquired by the 
Forest Service of the Department of Agriculture be-
tween 1915 and 1990, as demonstrated by written 
evidence from the Forest Service satisfactory to the 
Secretary. 
‘‘(2) COUNTY CHARTER.—The local educational 
agency serves a county chartered under State law in 
1875 or 1890. 
‘‘(f) SPECIAL RULE.—(1) Beginning with fiscal year 
1994, and notwithstanding any other provision of law lim-
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iting the period during which fiscal year 1994 funds may 
be obligated, the Secretary shall treat the local educational 
agency serving the Wheatland R–II School District, 
Wheatland, Missouri, as meeting the eligibility require-
ments of section 2(a)(1)(C) of the Act of September 30, 
1950 (Public Law 874, 81st Congress) (as such section 
was in effect on the day preceding the date of enactment 
of the Improving America’s Schools Act of 1994) (20 
U.S.C. 237(a)(1)(C)) or subsection (a)(1)(C). 
‘‘(2) For each fiscal year beginning with fiscal year 
1999, the Secretary shall treat the Webster School Dis-
trict, Day County, South Dakota as meeting the eligibility 
requirements of subsection (a)(1)(C) of this section. 
‘‘(3) For each fiscal year beginning with fiscal year 
2000, the Secretary shall treat the Central Union, Cali-
fornia; Island, California; Hill City, South Dakota; and 
Wall, South Dakota local educational agencies as meeting 
the eligibility requirements of subsection (a)(1)(C) of this 
section. 
‘‘(4) For the purposes of payments under this section 
for each fiscal year beginning with fiscal year 2000, the 
Secretary shall treat the Hot Springs, South Dakota local 
educational agency as if it had filed a timely application 
under section 8002 of the Elementary and Secondary 
Education Act of 1965 for fiscal year 1994 if the Sec-
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retary has received the fiscal year 1994 application, as 
well as exhibits A and B not later than December 1, 1999. 
‘‘(5) For purposes of payments under this section for 
each fiscal year beginning with fiscal year 2000, the Sec-
retary shall treat the Hueneme, California local edu-
cational agency as if it had filed a timely application under 
section 8002 of the Elementary and Secondary Education 
Act of 1965 if the Secretary has received the fiscal year 
1995 application not later than December 1, 1999. 
‘‘(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 
after fiscal year 1994 to have (A) the eligibility of 
such local educational agency, and (B) the amount 
which such agency shall be eligible to receive, deter-
mined under this section only with respect to such 
of the former school districts comprising such con-
solidated school districts as such agency shall des-
ignate in such election. 
‘‘(2) ELIGIBLE
LOCAL
EDUCATIONAL
AGEN-
CIES.—A local educational agency referred to in 
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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 for 
such fiscal year. 
‘‘(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 ratably reduce the pay-
ment to each local educational agency under subsection 
(b). 
‘‘(i) SPECIAL RULE.—For purposes of payments 
under this section for each fiscal year beginning with fiscal 
year 1998— 
‘‘(1) the Secretary shall, for the Stanley Coun-
ty, South Dakota local educational agency, calculate 
payments as if subsection (e) had been in effect for 
fiscal year 1994; and 
‘‘(2) the Secretary shall treat the Delaware Val-
ley, Pennsylvania local educational agency as if it 
had filed a timely application under section 2 of 
Public Law 81–874 for fiscal year 1994. 
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