I 
113TH CONGRESS 
1ST SESSION H. R. 2378 
To reauthorize the Impact Aid Program under the Elementary and Secondary 
Education Act of 1965. 
IN THE HOUSE OF REPRESENTATIVES 
JUNE 14, 2013 
Mr. MULLIN (for himself, Mr. BUCSHON, and Mr. O’ROURKE) 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 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 2013’’. 
SEC. 2. AMENDMENTS TO THE IMPACT AID IMPROVEMENT 
ACT OF 2012. 
Section 563(c) of the National Defense Authorization 
Act for Fiscal Year 2013 (Public Law 112–239; 126 Stat. 
1748) is amended— 
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(1) in paragraphs (1), by inserting ‘‘paragraphs 
(2) and (3) of’’ before ‘‘subsection (b)’’; and 
(2) in paragraph (4), by inserting ‘‘paragraphs 
(2) and (3) of’’ before ‘‘subsection (b)’’. 
SEC. 3. AMENDMENTS TO SECTION 8002 (PAYMENTS RELAT-
ING TO FEDERAL ACQUISITION OF REAL 
PROPERTY) OF THE ESEA. 
Section 8002(a) of the Elementary and Secondary 
Education Act of 1965 (20 U.S.C. 7702) is amended— 
(1) in paragraph (1), by amending subpara-
graph (C) to read as follows: 
‘‘(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 
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— 
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‘‘(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’’; and 
(2) by amending paragraph (2) to read as fol-
lows: 
‘‘(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).’’. 
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SEC. 4. AMENDMENTS TO SECTION 8003 (PAYMENTS FOR 
ELIGIBLE 
FEDERALLY 
CONNECTED 
CHIL-
DREN) OF THE ESEA. 
Section 8003 of the Elementary and Secondary Edu-
cation Act of 1965 (20 U.S.C. 7703) is amended— 
(1) in subsection (a)— 
(A) in paragraph (1), in the matter pre-
ceding 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 chil-
dren enrolled in a distance learning program 
not residing within the defined boundaries of 
the agency),’’; 
(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 im-
pacted local educational agency is eligible 
to receive a basic support payment under 
subparagraph (A) with respect to a num-
ber of children determined under sub-
section (a)(1) if the agency— 
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‘‘(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 Govern-
ment and the agency has no taxing 
authority; 
‘‘(II) is a local educational agen-
cy— 
‘‘(aa) that has an enrollment 
of children described in sub-
section (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 en-
rollment of 500 or more stu-
dents, 125 percent of the av-
erage per-pupil expenditure 
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of the State in which the 
agency is located; or 
‘‘(BB) for an agency 
that has a total student en-
rollment 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 edu-
cational 
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 gen-
eral fund purposes of com-
parable 
local 
educational 
agencies in the State; or 
‘‘(BB) was eligible to 
receive a payment under this 
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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 agen-
cy 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 chil-
dren are children described in sub-
paragraphs (A) and (B) of subsection 
(a)(1); or 
‘‘(IV) is a local educational agen-
cy that— 
‘‘(aa) has an enrollment of 
children described in subsection 
(a)(1) that constitutes a percent-
age of the total student enroll-
ment of the agency that is not 
less than 20 percent; 
‘‘(bb) for the 3 fiscal years 
preceding the fiscal year for 
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which the determination is made, 
the average enrollment of chil-
dren who are not described in 
subsection (a)(1) and who are eli-
gible for a free or reduced price 
lunch under the Richard B. Rus-
sell 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 gen-
eral fund purposes which is not 
less than 1.25 percent of the av-
erage 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 
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year shall be ineligible to receive a 
basic support payment under subpara-
graph (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 fol-
lowing: 
‘‘(iv) 
SPECIAL
RULE.—Notwith-
standing clause (i)(II), a local educational 
agency shall be considered eligible to re-
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ceive a basic support payment under sub-
paragraph (A) with respect to the number 
of children determined under subsection 
(a)(1) if the agency— 
‘‘(I) has an enrollment of chil-
dren 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 percent-
age of the total student enrollment of 
the agency that is not less than 35 
percent; and 
‘‘(II) was eligible to receive as-
sistance under subsection (b)(2) for 
fiscal year 2001.’’; 
(B) by amending subparagraph (C) to read 
as follows: 
‘‘(C) MAXIMUM AMOUNT FOR HEAVILY IM-
PACTED LOCAL EDUCATIONAL AGENCIES.— 
‘‘(i) IN
GENERAL.—The maximum 
amount that a heavily impacted local edu-
cational agency is eligible to receive under 
this paragraph for any fiscal year is the 
sum of the total weighted student units, as 
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computed under subsection (a)(2) and sub-
ject 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 pre-
ceding 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 pre-
ceding 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 stu-
dent enrollment of the schools of the agen-
cy 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 en-
rollment, the Secretary shall calculate the 
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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 agen-
cy that received a payment under this 
clause for fiscal year 2006, the local edu-
cational agency shall not be required to 
have an enrollment of children described in 
subparagraph (A), (B), or (C) of such sub-
section 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 num-
ber 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 en-
rollment of more than 100 but not more 
than 1,000 children described in subsection 
(a)(1), the Secretary shall calculate the 
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total number of weighted student units for 
purposes of subsection (a)(2) by multi-
plying 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 accord-
ance 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 en-
rollment of not less than 25,000 students, of 
which not less than 50 percent are children de-
scribed 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 max-
imum amount described in clause (i), the factor 
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used in determining the weighted student units 
under subsection (a)(2) with respect to children 
described in subparagraph (A) and (B) of sub-
section (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 redesig-
nated 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 in-
serting ‘‘the Secretary shall use’’; 
(G) by redesignating subparagraph (G) as 
subparagraph (F); 
(H) in subparagraph (F) (as so redesig-
nated by subparagraph (I)), in the matter pre-
ceding 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 redesig-
nated by subparagraph (K))— 
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(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 pe-
riod at the end the following: ‘‘or dur-
ing such time as activities associated 
with base closure and realignment, 
modularization, 
force 
structure 
change, or force relocation is ongo-
ing’’; 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 (v); and 
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(B) by inserting after clause (iii) the fol-
lowing: 
‘‘(iv) For any local educational agency 
that is providing a program of distant 
learning to children not residing within the 
legally defined boundaries of the agency, 
the Secretary shall disregard such children 
from such agency’s total enrollment when 
calculating the percentage under subclause 
(I) of clause (i) and shall disregard any 
funds received for such children when cal-
culating the total current expenditures at-
tributed to the operation of such agency 
when calculating the percentage under sub-
clause (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) in subsection (b)(3), by amending subpara-
graph (D) to read as follows: 
‘‘(D) RATABLE
DISTRIBUTION.—For any 
fiscal year described in subparagraph (A) for 
which the sums available exceed the amount re-
quired to pay each local educational agency 100 
percent of its threshold payment the Secretary 
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shall distribute the excess sums to each eligible 
local educational agency that has not received 
its full amount computed under paragraph (1) 
or (2) (as the case may be) by multiplying— 
‘‘(i) a percentage, the denominator of 
which is the difference between the full 
amount computed under paragraph (1) or 
(2) (as the case may be) for all local edu-
cational 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 ex-
cess sums, by: 
‘‘(ii) the difference between the full 
amount computed under paragraph (1) or 
(2) (as the case may be) for the agency 
and the amount of the threshold payment 
as calculated under subparagraphs (B) and 
(C) of the agency.’’; 
(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 
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an application for payment if such agency is newly 
established by a State (first year of operation 
only).’’; 
(7) in subsection (e) by striking paragraphs (1) 
and (2) and inserting the following: 
‘‘(1) IN GENERAL.—Subject to paragraph (2), 
the total amount the Secretary shall pay a local edu-
cational agency— 
‘‘(A) for fiscal year 2014 shall not be less 
than 90 percent of the total amount that the 
local education agency received under sub-
section (b)(1), (b)(2), or (b)(2)(B)(ii) for fiscal 
year 2011; 
‘‘(B) for fiscal year 2015 shall not be less 
than 80 percent of the total amount that the 
local educational agency received under sub-
section (b)(1), (b)(2), or (b)(2)(B)(ii) for fiscal 
year 2011; 
‘‘(C) for fiscal year 2016 shall not be less 
than 70 percent of the total amount that the 
local educational agency received under sub-
section (b)(1), (b)(2), or (b)(2)(B)(ii) for fiscal 
year 2011, of which such amount shall be con-
sidered a foundation payment for each suc-
ceeding fiscal year until such time as the agen-
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cy’s maximum payment as determined under 
paragraphs (1) or (2) of subsection (b) as the 
case may be, exceeds the amount provided for 
under this subparagraph. 
‘‘(2) 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 eligi-
ble to receive under paragraph (1) for such 
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, pay-
ments 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. 5. AMENDMENTS TO SECTION 8007 (CONSTRUCTION) 
OF THE ESEA. 
Section 8007 of the Elementary and Secondary Edu-
cation Act of 1965 (20 U.S.C. 7707) is amended to read 
as follows: 
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‘‘SEC. 8007. CONSTRUCTION. 
‘‘(a) SCHOOL FACILITY EMERGENCY
AND MOD-
ERNIZATION GRANTS AUTHORIZED.— 
‘‘(1) IN GENERAL.—From 100 percent of the 
amount appropriated for each fiscal year under sec-
tion 8014(e), the Secretary— 
‘‘(A) shall award emergency grants in ac-
cordance with this subsection to eligible local 
educational agencies to enable the agencies to 
carry out emergency repairs of school facilities; 
and 
‘‘(B) shall award modernization grants in 
accordance with this subsection to eligible local 
educational agencies to enable the agencies to 
carry out the modernization of school facilities. 
‘‘(2) 
PRIORITY.—In 
approving 
applications 
from local educational agencies for emergency grants 
and modernization grants under this subsection, the 
Secretary shall give priority to applications in ac-
cordance with the following: 
‘‘(A) The Secretary shall first give priority 
to applications for emergency grants from local 
educational agencies that meet the requirements 
of paragraph (3)(A) and, among such applica-
tions for emergency grants, shall give priority 
to those applications from local educational 
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property that may be taxed for school pur-
poses is at least $25,000,000 but not more 
than $50,000,000. 
‘‘(4) AWARD
CRITERIA.—In awarding emer-
gency grants and modernization grants under this 
subsection, the Secretary shall consider the following 
factors: 
‘‘(A) The ability of the local educational 
agency to respond to the emergency, or to pay 
for the modernization project, as the case may 
be, as measured by— 
‘‘(i) the agency’s level of bonded in-
debtedness; 
‘‘(ii) the assessed value of real prop-
erty per student that may be taxed for 
school purposes compared to the average of 
the assessed value of real property per stu-
dent that may be taxed for school purposes 
in the State in which the agency is located; 
‘‘(iii) the agency’s total tax rate for 
school purposes (or for capital expendi-
tures, if applicable) compared to the aver-
age total tax rate for school purposes (or 
the average capital expenditure tax rate, if 
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applicable) in the State in which the agen-
cy is located; and 
‘‘(iv) funds that are available to the 
agency, from any other source, including 
subsection (a), that may be used for cap-
ital expenditures. 
‘‘(B) The percentage of property in the 
agency that is nontaxable due to the presence 
of the Federal Government. 
‘‘(C) The number and percentages of chil-
dren described in subparagraphs (A), (B), (C), 
and (D) of section 8003(a)(1) served in the 
school facility with the emergency or served in 
the school facility proposed for modernization, 
as the case may be. 
‘‘(D) In the case of an emergency grant, 
the severity of the emergency, as measured by 
the threat that the condition of the school facil-
ity poses to the health, safety, and well-being of 
students. 
‘‘(E) In the case of a modernization 
grant— 
‘‘(i) the severity of the need for mod-
ernization, as measured by such factors 
as— 
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‘‘(I) overcrowding, as evidenced 
by the use of portable classrooms, or 
the potential for future overcrowding 
because of increased enrollment; or 
‘‘(II) the agency’s inability to uti-
lize technology or offer a curriculum 
in 
accordance 
with 
contemporary 
State standards due to the physical 
limitations of the current school facil-
ity; and 
‘‘(ii) the age of the school facility pro-
posed for modernization. 
‘‘(5) OTHER AWARD PROVISIONS.— 
‘‘(A) GENERAL PROVISIONS.— 
‘‘(i) LIMITATIONS
ON
AMOUNT
OF 
FUNDS.— 
‘‘(I) IN GENERAL.—The amount 
of funds provided under an emergency 
grant 
or 
a 
modernization 
grant 
awarded under this subsection to a 
local educational agency that meets 
the requirements of subclause (II) of 
paragraph (3)(A)(i) for purposes of 
eligibility under subparagraph (A) or 
(B) of paragraph (3)— 
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‘‘(aa) shall not exceed 50 
percent of the total cost of the 
project to be assisted under this 
subsection; and 
‘‘(bb) 
shall 
not 
exceed 
$4,000,000 during any 4-year pe-
riod. 
‘‘(II) IN-KIND CONTRIBUTIONS.— 
A local educational agency may use 
in-kind contributions to meet the 
matching requirement of subclause 
(I)(aa). 
‘‘(ii) 
PROHIBITIONS
ON
USE
OF 
FUNDS.—A local educational agency may 
not use funds provided under an emer-
gency grant or modernization grant award-
ed under this subsection for— 
‘‘(I) a project for a school facility 
for which the agency does not have 
full title or other interest; 
‘‘(II) stadiums or other school fa-
cilities that are primarily used for 
athletic contests, exhibitions, or other 
events for which admission is charged 
to the general public; or 
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‘‘(III) the acquisition of real 
property. 
‘‘(iii) 
SUPPLEMENT, 
NOT
SUP-
PLANT.—A local educational agency shall 
use funds provided under an emergency 
grant or modernization grant awarded 
under this subsection only to supplement 
the amount of funds that would, in the ab-
sence of the Federal funds provided under 
the grant, be made available from non- 
Federal sources to carry out emergency re-
pairs of school facilities or to carry out the 
modernization of school facilities, as the 
case may be, and not to supplant such 
funds. 
‘‘(iv) MAINTENANCE COSTS.—Nothing 
in this subsection shall be construed to au-
thorize the payment of maintenance costs 
in connection with any school facility mod-
ernized in whole or in part with Federal 
funds provided under this subsection. 
‘‘(v) 
ENVIRONMENTAL
SAFE-
GUARDS.—All projects carried out with 
Federal funds provided under this sub-
section shall comply with all relevant Fed-
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eral, State, and local environmental laws 
and regulations. 
‘‘(vi) CARRY-OVER OF CERTAIN APPLI-
CATIONS.—A local educational agency that 
applies for an emergency grant or a mod-
ernization grant under this subsection for 
a fiscal year and does not receive the grant 
for the fiscal year shall have the applica-
tion for the grant considered for the fol-
lowing fiscal year, subject to the priority 
requirements of paragraph (2) and the 
award criteria requirements of paragraph 
(4). 
‘‘(B) EMERGENCY
GRANTS; PROHIBITION 
ON USE OF FUNDS.—A local educational agency 
that is awarded an emergency grant under this 
subsection may not use amounts under the 
grant for the complete or partial replacement of 
an existing school facility unless such replace-
ment is less expensive or more cost-effective 
than correcting the identified emergency. 
‘‘(6) APPLICATION.—A local educational agency 
that desires to receive an emergency grant or a mod-
ernization grant under this subsection shall submit 
an application to the Secretary at such time, in such 
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