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SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Facilitating Access to Speedy 
Transmissions for Networks, E-commerce and Telecommunications (FASTNET) 
Act''.

SEC. 2. FINDINGS AND PURPOSE.

    (a) Findings.--Congress finds the following:
            (1) The Telecommunications Act of 1996 was enacted to 
        foster the rapid deployment of advanced telecommunications and 
        information technologies and services to all Americans by 
        promoting competition and reducing regulation in 
        telecommunications markets nationwide.
            (2) The Telecommunications Act of 1966 specifically 
        recognized the unique abilities and circumstances of local 
        exchange carriers with fewer than two percent of the Nation's 
        subscriber lines installed in the aggregate nationwide.
            (3) Given the markets two percent carriers typically serve, 
        such carriers are uniquely positioned to accelerate the 
        deployment of advanced services and competitive initiatives for 
        the benefit of consumers in less densely populated regions of 
        the Nation.
            (4) Existing regulations are typically tailored to the 
        circumstances of larger carriers and therefore often impose 
        disproportionate burdens on two percent carriers, impeding such 
        carriers' deployment of advanced telecommunications services 
        and competitive initiatives to consumers in less densely 
        populated regions of the Nation.
            (5) Reducing regulatory burdens on two percent carriers 
        will enable such carriers to devote additional resources to the 
        deployment of advanced services and to competitive initiatives 
        to benefit consumers in less densely populated regions of the 
        Nation.
            (6) Reducing regulatory burdens on two percent carriers 
        will increase such carriers' ability to respond to marketplace 
        conditions, allowing them to accelerate deployment of advanced 
        services and competitive initiatives to benefit consumers in 
        less densely populated regions of the Nation.
    (b) Purposes.--The purposes of this Act are--
            (1) to accelerate the deployment of advanced services and 
        the development of competition in the telecommunications 
        industry for the benefit of consumers in all regions of the 
        Nation, consistent with the Telecommunications Act of 1996, by 
        reducing regulatory burdens on local exchange carriers with 
        fewer than two percent of the Nation's subscriber lines 
        installed in the aggregate nationwide;
            (2) to improve such carriers' flexibility to undertake such 
        initiatives; and
            (3) to allow such carriers to redirect resources from 
        paying the costs of such regulatory burdens to increasing 
        investment in such initiatives.

SEC. 3. DEFINITION.

    Section 3 of the Communications Act of 1934 (47 U.S.C. 153) is 
amended--
            (1) by redesignating paragraphs (51) and (52) as paragraphs 
        (52) and (53), respectively; and
            (2) by inserting after paragraph (50) the following:
            ``(51) Two percent carrier.--The term `two percent carrier' 
        means an incumbent local exchange carrier within the meaning of 
        section 251(h) whose access lines, when aggregated with the 
        access lines of any local exchange carrier that such incumbent 
        local exchange carrier directly or indirectly controls, is 
        controlled by, or is under common control with, are fewer than 
        two percent of the Nation's subscriber lines installed in the 
        aggregate nationwide.''.

SEC. 4. REGULATORY RELIEF FOR TWO PERCENT CARRIERS.

    Title II of the Communications Act of 1934 is amended by adding at 
the end thereof a new part IV as follows:

         ``PART IV--PROVISIONS CONCERNING TWO PERCENT CARRIERS

``SEC. 281. REDUCED REGULATORY REQUIREMENTS FOR TWO PERCENT CARRIERS.

    ``(a) Commission To Take Into Account Differences.--In adopting 
rules that apply to incumbent local exchange carriers (within the 
meaning of section 251(h)), the Commission shall separately evaluate 
the burden that any proposed regulatory, compliance, or reporting 
requirements would have on two percent carriers.
    ``(b) Effect of Commission's Failure To Take Into Account 
Differences.--If the Commission adopts a rule that applies to incumbent 
local exchange carriers and fails to separately evaluate the burden 
that any proposed regulatory, compliance, or reporting requirement 
would have on two percent carriers, the Commission shall not enforce 
the rule against two percent carriers unless and until the Commission 
performs such separate evaluation.
    ``(c) Additional Review Not Required.--Nothing in this section 
shall be construed to require the Commission to conduct a separate 
evaluation under subsection (a) if the rules adopted do not apply to 
two percent carriers, or such carriers are exempted from such rules.
    ``(d) Savings Clause.--Nothing in this section shall be construed 
to prohibit any size-based differentiation among carriers mandated by 
this Act, chapter 6 of title 5, United State Code, the Commission's 
rules, or any other provision of law.
    ``(e) Effective Date.--The provisions of this section shall apply 
with respect to any rule adopted on or after the date of enactment of 
this section.

``SEC. 282. LIMITATION OF REPORTING REQUIREMENTS.

    ``(a) Limitation.--The Commission shall not require a two percent 
carrier--
            ``(1) to file cost allocation manuals or to have such 
        manuals audited or attested, but a two percent carrier that 
        qualifies as a class A carrier shall annually certify to the 
        Commission that the two percent carrier's cost allocation 
        complies with the rules of the Commission; or
            ``(2) to file Automated Reporting and Management 
        Information Systems (ARMIS) reports, except for purposes of 
        section 224.
    ``(b) Preservation of Authority.--Except as provided in subsection 
(a), nothing in this Act limits the authority of the Commission to 
obtain access to information under sections 211, 213, 215, 218, and 220 
with respect to two percent carriers.

``SEC. 283. INTEGRATED OPERATION OF TWO PERCENT CARRIERS.

    ``The Commission shall not require any two percent carrier to 
establish or maintain a separate affiliate to provide any common 
carrier or noncommon carrier services, including local and 
interexchange services, commercial mobile radio services, advanced 
services (within the meaning of section 706 of the Telecommunications 
Act of 1996), paging, Internet, information services or other enhanced 
services, or other services. The Commission shall not require any two 
percent carrier and its affiliates to maintain separate officers, 
directors, or other personnel, network facilities, buildings, research 
and development departments, books of account, financing, marketing, 
provisioning, or other operations.

``SEC. 284. PARTICIPATION IN TARIFF POOLS AND PRICE CAP REGULATION.

    ``(a) NECA Pool.--The participation or withdrawal from 
participation by a two percent carrier of one or more study areas in 
the common line tariff administered and filed by the National Exchange 
Carrier Association or any successor tariff or administrator shall not 
obligate such carrier to participate or withdraw from participation in 
such tariff for any other study area. The Commission may require a two 
percent carrier to give 60 days notice of its intent to participate or 
withdraw from participation in such common line tariff with respect to 
a study area. Except as permitted by section 310(f)(3), a two percent 
carrier's election under this subsection shall be binding for one year 
from the date of the election.
    ``(b) Price Cap Regulation.--A two percent carrier may elect to be 
regulated by the Commission under price cap rate regulation, or elect 
to withdraw from such regulation, for one or more of its study areas. 
The Commission shall not require a carrier making an election under 
this subsection with respect to any study area or areas to make the 
same election for any other study area. Except as permitted by section 
310(f)(3), a two percent carrier's election under this subsection shall 
be binding for one year from the date of the election.

``SEC. 285. DEPLOYMENT OF NEW TELECOMMUNICATIONS SERVICES BY TWO 
              PERCENT COMPANIES.

    ``(a) One-Day Notice of Deployment.--The Commission shall permit 
two percent carriers to introduce new interstate telecommunications 
services by filing a tariff on one day's notice showing the charges, 
classifications, regulations, and practices therefor, without obtaining 
a waiver, or make any other showing before the Commission in advance of 
the tariff filing. The Commission shall not have authority to approve 
or disapprove the rate structure for such services shown in such 
tariff.
    ``(b) Definition.--For purposes of subsection (a), the term `new 
interstate telecommunications service' means a class or subclass of 
service not previously offered by the two percent carrier that enlarges 
the range of service options available to ratepayers of such carrier.

``SEC. 286. ENTRY OF COMPETING CARRIER.

    ``(a) Pricing Flexibility.--Notwithstanding any other provision of 
this Act, any two percent carrier shall be permitted to de-average its 
interstate switched or special access rates, file tariffs on one day's 
notice, and file contract-based tariffs for interstate switched or 
special access services immediately upon certifying to the Commission 
that a telecommunications carrier unaffiliated with such carrier is 
engaged in facilities-based entry within such carrier's service area. A 
two percent carrier subject to rate-of-return regulation with respect 
to an interstate switched or special access service, for which pricing 
flexibility has been exercised pursuant to this subsection, shall 
compute its interstate rate of return based on the nondiscounted rate 
for such service.
    ``(b) Streamlined Pricing Regulation.--Notwithstanding any other 
provision of this Act, upon receipt by the Commission of a 
certification by a two percent carrier that--
            ``(1) a local exchange carrier, or its affiliate, or
            ``(2) a local exchange carrier operated by, or owned in 
        whole or part by, a governmental authority,
is engaged in facilities-based entry within the two percent carrier's 
service area, the Commission shall regulate the two percent carrier as 
non-dominant and shall not require the tariffing of the interstate 
service offerings of the two percent carrier.
    ``(c) Participation in Exchange Carrier Association Tariff.--A two 
percent carrier that meets the requirements of subsection (a) or (b) of 
this section with respect to one or more study areas shall be permitted 
to participate in the common line tariff administered and filed by the 
National Exchange Carrier Association or any successor tariff or 
administrator, by electing to include one or more of its study areas in 
such tariff.
    ``(d) Definitions.--For purposes of this section:
            ``(1) Facilities-based entry.--The term `facilities-based 
        entry' means, within the service area of a two percent 
        carrier--
                    ``(A) the provision or procurement of local 
                telephone exchange switching or its equivalent; and
                    ``(B) the provision of telephone exchange service 
                to at least one unaffiliated customer.
            ``(2) Contract-based tariff.--The term `contract-based 
        tariff' shall mean a tariff based on a service contract entered 
        into between a two percent carrier and one or more customers of 
        such carrier. Such tariff shall include--
                    ``(A) the term of the contract, including any 
                renewal options;
                    ``(B) a brief description of each of the services 
                provided under the contract;
                    ``(C) minimum volume commitments for each service, 
                if any;
                    ``(D) the contract price for each service or 
                services at the volume levels committed to by the 
                customer or customers;
                    ``(E) a brief description of any volume discounts 
                built into the contract rate structure; and
                    ``(F) a general description of any other 
                classifications, practices, and regulations affecting 
                the contract rate.
            ``(3) Service area.--The term `service area' has the same 
        meaning as in section 214(e)(5).

``SEC. 287. SAVINGS PROVISIONS.

    ``(a) Commission Authority.--Nothing in this part shall be 
construed to restrict the authority of the Commission under sections 
201 through 208.
    ``(b) Rural Telephone Company Rights.--Nothing in this part shall 
be construed to diminish the rights of rural telephone companies 
otherwise accorded by this Act, or the rules, policies, procedures, 
guidelines, and standards of the Commission as of the date of enactment 
of this section.
    ``(c) State Authority.--Nothing in this part shall be construed to 
limit or affect any authority (as of August 1, 2001) of the States over 
charges, classifications, practices, services, facilities, or 
regulations for or in connection with intrastate communications service 
by wire or radio of any carrier.''.

SEC. 5. LIMITATION ON MERGER REVIEW.

    (a) Amendment.--Section 310 of the Communications Act of 1934 (47 
U.S.C. 310) is amended by adding at the end the following:
    ``(f) Deadline for Making Public Interest Determination.--
            ``(1) Time limit.--In connection with any merger between 
        two percent carriers, or the acquisition, directly or 
        indirectly, by a two percent carrier or its affiliate of 
        securities or assets of another carrier or its affiliate, if 
the merged or acquiring carrier remains a two percent carrier after the 
merger or acquisition, the Commission shall make any determinations 
required by this section and section 214, and shall rule on any 
petition for waiver of the Commission's rules or other request related 
to such determinations, not later than 60 days after the date an 
application with respect to such merger or acquisition is submitted to 
the Commission.
            ``(2) Approval absent action.--If the Commission does not 
        approve or deny an application as described in paragraph (1) by 
        the end of the period specified, the application shall be 
        deemed approved on the day after the end of such period. Any 
        such application deemed approved under this subsection shall be 
        deemed approved without conditions.
            ``(3) Election permitted.--The Commission shall permit a 
        two percent carrier to make an election pursuant to section 284 
        with respect to any local exchange facilities acquired as a 
        result of a merger or acquisition that is subject to the review 
        deadline established in paragraph (1) of this subsection.''.
    (b) Effective Date.--The provisions of this section shall apply 
with respect to any application that is submitted to the Commission on 
or after the date of enactment of this Act. Applications pending with 
the Commission on the date of enactment of this Act shall be subject to 
the requirements of this section as if they had been filed with the 
Commission on the date of enactment of this Act.

SEC. 6. TIME LIMITS FOR ACTION ON PETITIONS FOR RECONSIDERATION OR 
              WAIVER.

    (a) Amendment.--Section 405 of the Communications Act of 1934 (47 
U.S.C. 405) is amended by adding to the end the following:
    ``(c) Expedited Action Required.--
            ``(1) Time limit.--Within 90 days after receiving from a 
        two percent carrier a petition for reconsideration or other 
        review filed under this section or a petition for waiver of a 
        rule, policy, or other Commission requirement, the Commission 
        shall issue an order granting or denying such petition. If the 
        Commission fails to act on a petition for waiver subject to the 
        requirements of this section within this 90-day period, the 
        relief sought in such petition shall be deemed granted. If the 
        Commission fails to act on a petition for reconsideration or 
        other review subject to the requirements of this section within 
        such 90-day period, the Commission's enforcement of any rule 
        the reconsideration or other review of which was specifically 
        sought by the petitioning party shall be stayed with respect to 
        that party until the Commission issues an order granting or 
        denying such petition.
            ``(2) Finality of action.--Any order issued under paragraph 
        (1), or any grant of a petition for waiver that is deemed to 
        occur as a result of the Commission's failure to act under 
        paragraph (1), shall be a final order and may be appealed.''.
    (b) Effective Date.--The provisions of this section shall apply 
with respect to any petition for reconsideration or other review or 
petition for waiver that is submitted to the Commission on or after the 
date of enactment of this Act. Petitions for reconsideration or 
petitions for waiver pending with the Commission on the date of 
enactment of this Act shall be subject to the requirements of this 
section as if they had been filed on the date of enactment of this Act.

SEC. 7. NATIONAL SECURITY AND LAW ENFORCEMENT EXCEPTIONS.

    Notwithstanding sections 310 and 405 of the Communications Act of 
1934 (47 U.S.C. 310 and 405), the 60-day time period under section 
310(f)(1) of that Act, as added by section 5 of this Act, and the 90-
day time period under section 405(c)(1) of that Act, as added by 
section 6 of this Act, shall not apply to a petition or application 
under section 310 or 405 if an Executive Branch agency with cognizance 
over national security, law enforcement, or public safety matters, 
including the Department of Defense, Department of Justice, and the 
Federal Bureau of Investigation, submits a written filing to the 
Federal Communications Commission advising the Commission that the 
petition or application may present national security, law enforcement, 
or public safety concerns that may not be resolved within the 60-day or 
90-day time period, respectively.
Facilitating Access to Speedy Transmissions for Networks, E-commerce and Telecommunications (FASTNET) Act - Amends the Communications Act of 1934 to define a "two percent carrier" (carrier) as an incumbent local exchange carrier whose access lines, when combined with the access lines of any other carrier that such carrier controls, are fewer than two percent of the subscriber lines installed in the aggregate nationwide.Directs the Federal Communications Commission (FCC), in adopting rules that apply to such carriers, to separately evaluate the burden that any proposed regulatory, compliance, or reporting requirements would have on such carriers. Prohibits the FCC from requiring such carriers to: (1) file cost allocation manuals or Automated Reporting and Management Information Systems reports; or (2) establish or maintain a separate affiliate to provide any common carrier or noncommon carrier services.Limits carrier participation in tariff pools and price cap regulation.Requires the FCC to permit such carriers to introduce new interstate telecommunications services by filing a tariff on one day's notice.Allows such carriers to de-average its interstate switched or special access rates, file tariffs on one day's notice, and file contract-based tariffs for switched or special access services upon certifying that a telecommunications carrier unaffiliated with such carrier is engaged in facilities-based entry within such carrier's service area. Limits FCC carrier merger review authority. Provides time limits for FCC action on petitions for reconsideration or waiver of a rule, policy, or requirement.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``El Camino Real de los Tejas National 
Historic Trail Act of 2003''.

SEC. 2. AUTHORIZATION AND ADMINISTRATION.

    Section 5(a) of the National Trails System Act (16 U.S.C. 1244(a)) 
is amended by adding at the end the following:
            ``(23) El camino real de los tejas.--
                    ``(A) In general.--Subject to subparagraph (B), El 
                Camino Real de los Tejas (The Royal Road of historic 
                Tejas) National Historic Trail, a combination of 
                historic routes totaling 2,580 miles in length from the 
                Rio Grande near Eagle Pass and Laredo, Texas, to 
                Natchitoches, Louisiana, and including the Old San 
                Antonio Road, as generally depicted on the maps 
                entitled `El Camino Real de los Tejas', contained in 
                the report prepared pursuant to subsection (b) entitled 
                `National Historic Trail Feasibility Study and 
                Environmental Assessment: El Camino Real de los Tejas, 
                Texas-Louisiana', dated July 1998. The National Park 
                Service is authorized to administer designated portions 
                of this trail system as a national historic trail as 
                set forth in this paragraph.
                    ``(B) Establishment.--
                            ``(i) Publicly owned lands.--Congress 
                        authorizes the establishment of El Camino Real 
                        de los Tejas national historic trail and the 
                        respective administration on those portions of 
                        the historic trail routes and related historic 
                        sites within publicly owned lands when such 
                        trail related resources meet the purposes of 
                        this Act or certification criteria set by the 
                        Secretary of the Interior per section 3(a)(3) 
                        of this Act.
                            ``(ii) Privately owned lands.--Congress 
                        authorizes the establishment of El Camino Real 
                        de los Tejas national historic trail and the 
                        respective administration on those portions of 
                        the historic trail routes and related historic 
                        sites within privately owned lands only through 
                        the voluntary and expressed consent of the 
                        owner and when such trails and sites qualify 
                        for certification as officially established 
                        components of the national historic trail. The 
                        owner's approval of a certification agreement 
                        satisfies the consent requirement. 
                        Certification agreements are not legally 
                        binding and may be terminated at any time. 
                        Should land ownership change at a certified 
                        site, the certification will cease to be valid 
                        unless the new owner consents to a new 
                        agreement.
                    ``(C) Private property rights protection.--Nothing 
                in this Act or in the establishment of any portion of 
                the national historic trail authorizes any person to 
                enter private property without the consent of the 
                owner. Nothing in this Act or in the establishment of 
                any portion of the national historic trail will 
                authorize the Federal Government to restrict private 
                property owner's use or enjoyment of their property 
                subject to other laws or regulations. Authorization of 
                El Camino Real de los Tejas National Historic Trail 
                under this Act does not itself confer any additional 
                authority to apply other Federal laws and regulations 
                on non-Federal lands along the trail. Laws or 
                regulations requiring public entities and agencies to 
                take into consideration a national historic trail shall 
                continue to apply notwithstanding the foregoing. 
                Notwithstanding section 7(g) of this Act, the United 
                States is authorized to acquire privately owned real 
                property or an interest in such property for purposes 
                of the national historic trail only with the consent of 
                the owner of such property and shall have no authority 
                to condemn or otherwise appropriate privately owned 
                real property or an interest in such property for the 
                purposes of El Camino Real de los Tejas National 
                Historic Trail.
                    ``(D) Coordination of activities.--The Secretary of 
                the Interior may coordinate with United States and 
                Mexican public and nongovernmental organizations, 
                academic institutions, and, in consultation with the 
                Secretary of State, the Government of Mexico and its 
                political subdivisions, for the purpose of exchanging 
                trail information and research, fostering trail 
                preservation and educational programs, providing 
                technical assistance, and working to establish an 
                international historic trail with complementary 
                preservation and education programs in each nation.''.
El Camino Real de los Tejas National Historic Trail Act of 2003 - Amends the National Trails System Act to designate El Camino Real de los Tejas as a National Historic Trail. Authorizes establishment of such trail on portions of the trail on: (1) publicly owned lands; and (2) privately owned lands only with the consent of the owner.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``School Capacity Relief Act''.

SEC. 2. TRANSFER OF STUDENTS TO SCHOOLS AT OR ABOVE CAPACITY.

    (a) In General.--Paragraph (1) of section 1116(b) of the Elementary 
and Secondary Education Act of 1965 (20 U.S.C. 6316(b)(1)) is amended--
            (1) in subparagraph (E)(i), by striking ``In the case of a 
        school'' and inserting ``Subject to clauses (ii) and (iii) of 
        subparagraph (F), in the case of a school''; and
            (2) in subparagraph (F)--
                    (A) by striking ``(F) Transfer.--Students who use'' 
                and inserting the following:
                    ``(F) Transfer.--
                            ``(i) In general.--Students who use''; and
                    (B) by adding at the end the following:
                            ``(ii) Transfer to school above capacity.--
                        Subject to the right of a child who has been 
                        transferred to another school under this 
                        subsection to remain in that school under 
                        paragraph (13), a local educational agency may 
                        prohibit the transfer under subparagraph (E), 
                        paragraph (5)(A), (7)(C)(i), or (8)(A)(i), or 
                        subsection (c)(10)(C)(vii), of any student to a 
                        school served by the agency, if the agency 
                        determines (for purposes of the school year at 
                        issue) that the school is at or above capacity 
                        or that the transfer of an additional student 
                        would increase the average class size of the 
                        school above the average class size prescribed 
                        by the State.
                            ``(iii) No mandatory increase of 
                        capacity.--A local educational agency may not 
                        be required to increase the capacity of any 
                        school served by the agency for the purpose of 
                        transferring any student to that school under 
                        subparagraph (E), paragraph (5)(A), (7)(C)(i), 
                        or (8)(A)(i), or subsection (c)(10)(C)(vii).''.
    (b) Cooperative Agreement.--Paragraph (11) of section 1116(b) of 
the Elementary and Secondary Education Act of 1965 (20 U.S.C. 
6316(b)(11)) is amended to read as follows:
            ``(11) Cooperative agreement.--In any case described in 
        paragraph (1)(E), (5)(A), (7)(C)(i), or (8)(A)(i), or 
        subsection (c)(10)(C)(vii), if all public schools served by the 
        local educational agency to which a child may transfer are 
        identified for school improvement, corrective action, or 
        restructuring, or are determined by the agency to be at or 
        above capacity or otherwise ineligible for a transfer under 
        paragraph (1)(F)(ii), the agency shall, to the extent 
        practicable, establish a cooperative agreement with other local 
        educational agencies in the area for a transfer.''.

SEC. 3. GRANTS FOR INCREASING SCHOOL CAPACITY.

    (a) Grants.--Title IV of the Elementary and Secondary Education Act 
of 1965 (20 U.S.C. 7101 et seq.) is amended by adding at the end the 
following:

                  ``PART D--INCREASING SCHOOL CAPACITY

``SEC. 4401. GRANTS.

    ``(a) Authority.--The Secretary may award grants to eligible local 
educational agencies for the purpose of increasing capacity at high-
performance schools.
    ``(b) Use of Funds.--The Secretary may not make a grant under this 
section unless the eligible local educational agency involved agrees 
that the agency will use the funds received under the grant only for 
measures to increase the capacity of high-performance schools served by 
that agency. Such measures may include renovating or constructing 
facilities at the high-performance school involved, hiring teachers to 
teach at such school, or purchasing instructional materials for use at 
such school.
    ``(c) Application.--To seek a grant under this section, an eligible 
local educational agency shall submit an application to the Secretary 
at such time, in such manner, and containing such information as the 
Secretary may require.

``SEC. 4402. DEFINITIONS.

    ``For purposes of this part:
            ``(1) The term `eligible local educational agency' means a 
        local educational agency with a high percentage or number of 
        students at schools identified for school improvement, 
        corrective action, or restructuring under section 1116(b).
            ``(2) The term `high-performance school' means a school 
        that is not identified for school improvement, corrective 
        action, or restructuring under section 1116(b).

``SEC. 4403. AUTHORIZATION OF APPROPRIATIONS.

    ``There are authorized to be appropriated to carry out this part 
such sums as may be necessary for each of fiscal years 2004 through 
2007.''.
    (b) Conforming Amendment.--The table of contents at section 2 of 
the Elementary and Secondary Education Act of 1965 is amended by 
inserting after the item relating to section 4304 the following:

                  ``Part D--Increasing School Capacity

``Sec. 4401. Grants.
``Sec. 4402. Definitions.
``Sec. 4403. Authorization of appropriations.''.

SEC. 4. ESTABLISHMENT OF LIMITS ON DURATION OR DISTANCE OF 
              TRANSPORTATION PROVIDED TO TRANSFERRING STUDENTS.

    Paragraph (9) of section 1116(b) of the Elementary and Secondary 
Education Act of 1965 (20 U.S.C. 6316(b)(9)) is amended by inserting 
before the period the following: ``, unless the agency establishes a 
limit on the duration or distance of transportation to be provided or 
paid for under this paragraph and determines that transporting the 
student would exceed such limit.''.

School Capacity Relief Act - Amends the Elementary and Secondary Education Act of 1965 (ESEA) to authorize local educational agencies (LEAs) to prohibit the transfer of students from schools identified for school improvement to another school if that school is at or above capacity or if such transfer would increase that school's average class size above what the State prescribes.Provides that children retain certain rights to remain in schools to which they have already been transferred under ESEA school improvement provisions.Requires an LEA to enter into a cooperative agreement for school transfers with another LEA in the area, if all of the LEA's public schools are either: (1) identified for school improvement, corrective action, or restructuring; or (2) are determined by the LEA to be at or above capacity or otherwise ineligible for a transfer.Authorizes the Secretary of Education to award grants to eligible LEAs to increase capacity at high-performance schools, through measures that may include renovating or constructing facilities, hiring teachers, or purchasing instructional materials. Makes an LEA eligible for such a grant if it has a high percentage or number of students at schools identified under ESEA for school improvement, corrective action, or restructuring. Provides that a high-performance school is one that is not identified for such school improvement, corrective action, or restructuring.Authorizes LEAs to establish limits on duration or distance of transportation to be provided or paid for under ESEA school improvement provisions for transferring students.