H. R. 3269
One Hundred Fourth Congress
of the
United States of America
AT THE SECOND SESSION
Begun and held at the City of Washington on Wednesday,
the third day of January, one thousand nine hundred and ninety-six
An Act
To amend the Impact Aid program to provide for a hold-harmless with respect
to amounts for payments relating to the Federal acquisition of real property,
and for other purposes.
Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled,
SECTION 1. HOLD-HARMLESS AMOUNTS FOR PAYMENTS RELATING
TO FEDERAL ACQUISITION OF REAL PROPERTY.
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 subsections:
‘‘(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 consolidation 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, determined under this section only
with respect to such of the former school districts comprising
such consolidated school districts as such agency shall designate
in such election.
‘‘(2) ELIGIBLE LOCAL EDUCATIONAL AGENCIES.—A local edu-
cational agency referred to in paragraph (1) is any local
educational agency that, for fiscal year 1994 or any preceding
fiscal year, applied for and was determined eligible under sec-
tion 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) HOLD-HARMLESS AMOUNTS.—
‘‘(1) IN GENERAL.—Except as provided in paragraph (2)(A),
the total amount that the Secretary shall pay under subsection
(b) to a local educational agency that is otherwise eligible
for a payment under this section—
‘‘(A) for fiscal year 1995 shall not be less than 85
percent of the amount such agency received for fiscal year
1994 under section 2 of the Act of September 30, 1950
(Public Law 874, 81st Congress) as such section was in
effect on September 30, 1994; or
‘‘(B) for fiscal year 1996 shall not be less than 85
percent of the amount such agency received for fiscal year
1995 under subsection (b).
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‘‘(2) RATABLE REDUCTIONS.—(A)(i) If necessary in order to
make payments to local educational 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 pay-
ments under subsection (b) for such year, then payments that
were reduced under clause (i) shall be increased on the same
basis as such payments 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 payments
under paragraph (1) to all such agencies for such year.
‘‘(ii) If additional funds become available for making pay-
ments under paragraph (1) for such fiscal year, then payments
that were reduced under clause (i) shall be increased on the
same basis as such payments were reduced.’’.
SEC. 2. APPLICATIONS FOR INCREASED PAYMENTS.
(a) PAYMENTS.—Notwithstanding any other provision of law—
(1) the Bonesteel-Fairfax School District Number 26–5,
South Dakota, and the Wagner Community School District
Number 11–4, South Dakota, shall be eligible to apply for
payment for fiscal year 1994 under section 3(d)(2)(B) of the
Act of September 30, 1950 (Public Law 874, 81st Congress)
(as such section was in effect on September 30, 1994); and
(2) the Secretary of Education shall use a subgroup of
10 or more generally comparable local educational agencies
for the purpose of calculating a payment described in paragraph
(1) for a local educational agency described in such paragraph.
(b) APPLICATION.—In order to be eligible to receive a payment
described in subsection (a), a school district described in such sub-
section shall apply for such payment within 30 days after the
date of enactment of this Act.
(c) CONSTRUCTION.—Nothing in this section shall be construed
to require a local educational agency that received a payment
under section 3(d)(2)(B) of the Act of September 30, 1950 (Public
Law 874, 81st Congress) (as such section was in effect on September
30, 1994) for fiscal year 1994 to return such payment or a portion
of such payment to the Federal Government.
SEC. 3. PAYMENTS FOR ELIGIBLE FEDERALLY CONNECTED CHILDREN
RESIDING 
ON 
MILITARY 
INSTALLATION 
HOUSING
UNDERGOING RENOVATION.
(a) IN GENERAL.—Section 8003(a) of the Elementary and
Secondary Education Act of 1965 (20 U.S.C. 7703(a)) is amended
by adding at the end the following new paragraph:
‘‘(4) MILITARY INSTALLATION HOUSING UNDERGOING RENOVA-
TION.—For purposes of computing the amount of a payment
for a local educational agency for children described in para-
graph (1)(D)(i), the Secretary shall consider such children to
be children described in paragraph (1)(B) if the Secretary deter-
mines, 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
H. R. 3269—3
property in accordance with paragraph (1)(B) except that such
housing was undergoing renovation on the date for which the
Secretary determines the number of children 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 respect to fiscal years after fiscal
year 1995.
SEC. 4. COMPUTATION OF PAYMENTS FOR ELIGIBLE FEDERALLY CON-
NECTED CHILDREN IN STATES WITH ONLY ONE LOCAL
EDUCATIONAL AGENCY.
(a) IN GENERAL.—Section 8003(b) of the Elementary and
Secondary Education Act of 1965 (20 U.S.C. 7703(b)) is amended
by adding at the end the following new paragraph:
‘‘(3) STATES WITH ONLY ONE LOCAL EDUCATIONAL AGENCY.—
‘‘(A) IN GENERAL.—In any of the 50 States of the United
States in which there is only one local educational agency,
the Secretary shall, for purposes of paragraphs (1)(B),
(1)(C), and (2) of this subsection, and subsection (e), con-
sider each administrative school district in the State to
be a separate local educational agency.
‘‘(B) COMPUTATION OF MAXIMUM AMOUNT OF BASIC SUP-
PORT PAYMENT AND THRESHOLD PAYMENT.—In computing
the maximum payment 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 determine the maxi-
mum payment amount and the total current expendi-
tures for the State as a whole; and
‘‘(ii) the Secretary shall then—
‘‘(I) proportionately allocate such maximum
payment amount among the administrative school
districts on the basis of the respective weighted
student units of such districts; and
‘‘(II) proportionately allocate such total current
expenditures among the administrative school dis-
tricts on the basis of the respective number of
students in average daily attendance at such dis-
tricts.’’.
(b) EFFECTIVE DATE.—Paragraph (3) of section 8003(b) of the
Elementary and Secondary Education Act of 1965, as added by
subsection (a), shall apply with respect to fiscal years after fiscal
year 1994.
SEC. 5. DATA AND DETERMINATION OF AVAILABLE FUNDS.
(a) DATA.—Paragraph (4) of section 8003(f) of the Elementary
and Secondary Education Act of 1965 (20 U.S.C. 7703(f)) is
amended—
(1) in the heading, by striking ‘‘CURRENT YEAR’’;
(2) by amending subparagraph (A) to read as follows:
‘‘(A) shall use student, revenue, and tax data from
the second fiscal year preceding the fiscal year for which
the local educational agency is applying for assistance
under this subsection;’’; and