I 
112TH CONGRESS 
1ST SESSION 
H. R. 472 
To reauthorize the Impact Aid Program under the Elementary and Secondary 
Education Act of 1965. 
IN THE HOUSE OF REPRESENTATIVES 
JANUARY 26, 2011 
Mr. BOREN 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 2011’’. 
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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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such revenue, or (bb) any other amount by reason 
of receipt of such revenue. 
‘‘(III) If the amount equal to the sum of (aa) 
the proposed payment under this section to a local 
educational agency for a fiscal year and (bb) the 
amount of revenue described in subclause (II)(aa) 
received by the agency during the previous fiscal 
year, exceeds the maximum amount the agency is el-
igible to receive under this section for the fiscal year 
involved, then the Secretary shall reduce the amount 
of the proposed payment under this section by an 
amount equal to such excess amount. 
‘‘(ii) For purposes of clause (i), the amount of 
revenue that a local educational agency receives dur-
ing the previous fiscal year from activities conducted 
on Federal property shall not include payments re-
ceived by the agency from the Secretary of Defense 
to support— 
‘‘(I) the operation of a domestic dependent 
elementary or secondary school; or 
‘‘(II) the provision of a free public edu-
cation to dependents of members of the Armed 
Forces residing on or near a military installa-
tion. 
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‘‘(B) If funds appropriated under section 
8014(a) are insufficient to pay the amount deter-
mined under subparagraph (A), the Secretary shall 
calculate the payment for each eligible local edu-
cational agency in accordance with subsection (h). 
‘‘(C) Notwithstanding any other provision of 
this subsection, a local educational agency may not 
be paid an amount under this section that, when 
added to the amount such agency receives under sec-
tion 8003(b), exceeds the maximum amount that 
such agency is eligible to receive for such fiscal year 
under section 8003(b)(1)(C), or the maximum 
amount that such agency is eligible to receive for 
such fiscal year under this section, whichever is 
greater. 
‘‘(D) Notwithstanding any other provision of 
this subsection, a local educational agency may not 
be paid an amount under this section that exceeds 
the total current expenditures of the agency in the 
second prior fiscal year. 
‘‘(E) Notwithstanding any other provision of 
this subsection, in fiscal years 2012, 2013, and 2014 
a local educational agency may not be paid an 
amount under this section that is less than 85 per-
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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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‘‘(j) PRIOR YEAR DATA.—Notwithstanding any other 
provision of this section, in determining the eligibility of 
a local educational agency for a payment under subsection 
(b) or (h)(4)(B) of this section for a fiscal year, and in 
calculating the amount of such payment, the Secretary— 
‘‘(1) shall use data from the prior fiscal year 
with respect to the Federal property involved, includ-
ing data with respect to the assessed value of the 
property and the real property tax rate for current 
expenditures levied against or imputed to the prop-
erty; and 
‘‘(2) shall use data from the second prior fiscal 
year with respect to determining the amount of rev-
enue referred to in subsection (b)(1)(A)(i). 
‘‘(k) ELIGIBILITY.— 
‘‘(1) OLD
FEDERAL
PROPERTY.—Except as 
provided in paragraph (2), a local educational agen-
cy that is eligible to receive a payment under this 
section for Federal property acquired by the Federal 
Government, before the date of the enactment of the 
Impact Aid Fairness and Equity Act of 2011, shall 
be eligible to receive the payment only if the local 
educational agency submits an application for a pay-
ment under this section not later than 7 years after 
the date of the enactment of such Act. 
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‘‘(2) COMBINED FEDERAL PROPERTY.—A local 
educational agency that is eligible to receive a pay-
ment under this section for Federal property ac-
quired by the Federal Government before the date of 
the enactment of the Impact Aid Fairness and Eq-
uity Act of 2011 shall be eligible to receive the pay-
ment if— 
‘‘(A) the Federal property, when combined 
with other Federal property in the school dis-
trict served by the local educational agency ac-
quired by the Federal Government after the 
date of the enactment of such Act, meets the 
requirements of subsection (a); and 
‘‘(B) the local educational agency submits 
an application for a payment under this section 
not later than 7 years after the date of acquisi-
tion of the Federal property acquired after the 
date of the enactment of such Act. 
‘‘(3) NEW FEDERAL PROPERTY.—A local edu-
cational agency that is eligible to receive a payment 
under this section for Federal property acquired by 
the Federal Government after the date of the enact-
ment of the Impact Aid Fairness and Equity Act of 
2011 shall be eligible to receive the payment only if 
the local educational agency submits an application 
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for a payment under this section not later than 7 
years after the date of acquisition. 
‘‘(l) LOSS OF ELIGIBILITY.— 
‘‘(1) IN GENERAL.—Notwithstanding any other 
provision of this section, the Secretary shall make a 
minimum payment to a local educational agency de-
scribed in paragraph (2), for the first fiscal year 
that the agency loses eligibility for assistance under 
this section as a result of property located within the 
school district served by the agency failing to meet 
the definition of Federal property under section 
8013(5)(C)(iii), in an amount equal to 90 percent of 
the amount received by the agency under this section 
for the preceding year. 
‘‘(2) 
LOCAL
EDUCATIONAL
AGENCY
DE-
SCRIBED.—A local educational agency described in 
this paragraph is an agency that— 
‘‘(A) was eligible for, and received, a pay-
ment under this section for fiscal year 2002; 
and 
‘‘(B) beginning in fiscal year 2003 or a 
subsequent fiscal year, is no longer eligible for 
payments under this section as provided for in 
subsection (a)(1)(C) as a result of the transfer 
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of the Federal property involved to a non-Fed-
eral entity.’’. 
SEC. 3. AMENDMENTS TO SECTION 8003 (PAYMENTS FOR 
ELIGIBLE 
FEDERALLY 
CONNECTED 
CHIL-
DREN). 
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),’’; 
(B) in paragraph (2)— 
(i) by redesignating subparagraphs 
(D) through (F) as (E) through (G), re-
spectively; and 
(ii) by inserting after subparagraph 
(C) the following: 
‘‘(D) Multiply the number of children de-
scribed in subparagraphs (A) and (B) of para-
graph (1) by a factor of 1.35 if the local edu-
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cational agency has a total student enrollment 
of not less than 25,000 students, of which not 
less than 50 percent are children described in 
paragraph (1) and not less than 6,000 of such 
children are children described in subparagraph 
(A) and (B) of paragraph (1).’’; 
(2) in subsection (b)(2)— 
(A) in subparagraph (B)— 
(i) in the subparagraph heading by 
striking ‘‘CONTINUING’’; 
(ii) in clause (i) by striking subclauses 
(I) and (II) and inserting the following: 
‘‘(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) has an enrollment of chil-
dren described in subsection (a)(1) 
that constitutes a percentage of the 
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total student enrollment of the agency 
that is not less than 45 percent; 
‘‘(III) has a per-pupil expendi-
ture that is less than— 
‘‘(aa) for a local educational 
agency that has a total student 
enrollment of 350 or more stu-
dents, 150 percent of the average 
per-pupil 
expenditure 
of 
the 
State in which the agency is lo-
cated; or 
‘‘(bb) for a local educational 
agency that has a total student 
enrollment of less than 350 stu-
dents— 
‘‘(AA) 150 percent of 
the average per-pupil ex-
penditure of the State in 
which the agency is located; 
or 
‘‘(BB) the average per- 
pupil expenditure of three 
comparable local educational 
agencies in the State in 
which the agency is located; 
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‘‘(IV) has a tax rate for general 
fund purposes that is at least 95 per-
cent of the average tax rate for gen-
eral fund purposes of comparable local 
educational agencies in the State; and 
‘‘(V) for a local educational agen-
cy that has an enrollment of children 
described in subsection (a)(1) that 
constitutes a percentage of the total 
student enrollment of the agency 
which is not less than 30 percent, and 
has a tax rate for general fund pur-
poses which is not less than 125 per-
cent of the average tax rate for gen-
eral fund purposes for comparable 
local educational agencies in the 
State;’’; and 
(iii) 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-
ceive a basic support payment under sub-
paragraph (A) with respect to the number 
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of children determined under subsection 
(a)(1) if the agency— 
‘‘(I) has an enrollment of chil-
dren described in subsection (a)(1) 
that constitutes a percentage of the 
total student enrollment of the agency 
that is not less than 35 percent in-
cluding for purposes of determining 
eligibility those children described in 
subparagraph (F) and (G) of sub-
section (a)(1); and 
‘‘(II) was eligible to receive as-
sistance under this paragraph in fiscal 
year 2001.’’; 
(B) by striking subparagraphs (C), (D), 
and (E); 
(C) by inserting after subparagraph (B) 
the following: 
‘‘(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 subparagraph 
(D) or (E) (or a combination thereof) of 
subsection (a)(1), and has an enrollment of 
children described in subparagraph (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 subparagraph (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 in fiscal year 2006, the local edu-
cational agency shall not be required to 
have 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 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 (B)(i)(I) of 
this subsection and has an enrollment of 
more than 100 but not more than 1,000 
children described in subsection (a)(1), the 
Secretary shall calculate the total number 
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of weighted student units for purposes of 
subsection (a)(2) by multiplying the num-
ber of such children by a factor of 1.25. 
‘‘(iii) PAYMENT CAP.—The amount of 
such payment to a local educational agency 
under this subparagraph shall be no more 
than needed to raise the per-pupil expendi-
ture of such local educational agency to the 
higher of 110 percent of the State average 
per-pupil expenditure of the State in which 
the local educational agency is located or 
the average per-pupil expenditure of three 
comparable local educational agencies.’’; 
(D) by redesignating subparagraph (F) as 
(D) and, in that subparagraph— 
(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’’; 
(E) by redesignating subparagraph (G) as 
(E) and, in that subparagraph, in the matter 
preceding clause (i), by striking ‘‘(C)(i)(II)(bb)’’ 
and inserting ‘‘(B)(i)(II)(bb)’’; and 
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srobinson on DSKHWCL6B1PROD with BILLS
(F) by redesignating subparagraph (H) as 
(F) and, in that subparagraph— 
(i) in clause (i)— 
(I) by striking ‘‘(B), (C), (D), or 
(E),’’ and inserting ‘‘(B) or (C),’’; 
(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)— 
(I) by striking ‘‘(D) or (E), as 
the case may be,’’ and inserting 
‘‘(C)’’; and 
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srobinson on DSKHWCL6B1PROD with BILLS
‘‘(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 
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.’’; 
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srobinson on DSKHWCL6B1PROD with BILLS
(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 
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-
cation agency— 
‘‘(A) for fiscal year 2012 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 2009; 
‘‘(B) for fiscal year 2013 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 2009; 
‘‘(C) for fiscal year 2014 shall not be less 
than 70 percent of the total amount that the 
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srobinson on DSKHWCL6B1PROD with BILLS
local educational agency received under sub-
section (b)(1), (b)(2), or (b)(2)(B)(ii) for fiscal 
year 2009, of which such amount shall be con-
sidered a foundation payment for each suc-
ceeding fiscal year until such time as the agen-
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). 
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SEC. 4. AMENDMENTS TO SECTION 8007 (CONSTRUCTION). 
Section 8007 of the Elementary and Secondary Edu-
cation Act of 1965 (20 U.S.C. 7707) is amended to read 
as follows: 
‘‘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 
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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 
agencies based on the severity of the emer-
gency, as determined by the Secretary. 
‘‘(B) The Secretary shall next give priority 
to applications for modernization grants from 
local educational agencies that meet the re-
quirements of paragraph (3)(B) and, among 
such applications for modernization grants, 
shall give priority to those applications from 
local educational agencies based on the severity 
of the need for modernization, as determined by 
the Secretary. 
‘‘(3) ELIGIBILITY REQUIREMENTS.— 
‘‘(A) EMERGENCY GRANTS.—A local edu-
cational agency is eligible to receive an emer-
gency grant under paragraph (2)(A) if— 
‘‘(i) the agency (or in the case of a 
local educational agency that does not have 
the authority to tax or issue bonds, the 
agency’s fiscal agent)— 
‘‘(I) has no practical capacity to 
issue bonds; or 
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‘‘(II) has minimal capacity to 
issue bonds and is at not less than 75 
percent of the agency’s limit of bond-
ed indebtedness; or 
‘‘(ii) the agency is eligible to receive 
assistance under subsection (a) for the fis-
cal year and has a school facility emer-
gency, as determined by the Secretary, 
that poses a health or safety hazard to the 
students and school personnel assigned to 
the school facility. 
‘‘(B) MODERNIZATION
GRANTS.—A local 
educational agency is eligible to receive a mod-
ernization grant under paragraph (2)(B) if— 
‘‘(i) the agency receives a basic sup-
port payment under section 8003(b) for 
the fiscal year; or 
‘‘(ii) the agency receives a federal 
properties payment under section 8002 for 
the fiscal year. 
‘‘(C) RULE OF CONSTRUCTION.—For pur-
poses of subparagraph (A)(i), a local edu-
cational agency— 
‘‘(i) has no practical capacity to issue 
bonds if the total assessed value of real 
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property that may be taxed for school pur-
poses is less than $25,000,000; and 
‘‘(ii) has minimal capacity to issue 
bonds if the total assessed value of real 
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-
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