[Congressional Bills 104th Congress]
[From the U.S. Government Printing Office]
[H.R. 3269 Enrolled Bill (ENR)]
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,

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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 educational
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 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) 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).
``(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 payments
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 payments
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.''.

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(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
subsection 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.

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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 renovation.--For
purposes of computing the amount of a payment for a local
educational agency for children described in paragraph (1)(D)(i),
the Secretary shall consider such children to be children described
in paragraph (1)(B) if the Secretary determines, 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 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.

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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), consider each
administrative school district in the State to be a separate
local educational agency.
``(B) Computation of maximum amount of basic support
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 maximum
payment amount and the total current expenditures 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 districts
on the basis of the respective number of students in
average daily attendance at such districts.''.
(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.

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(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
(3) in subparagraph (B), by striking ``such year'' and
inserting ``the fiscal year for which the local educational agency
is applying for assistance under this subsection''.
(b) Determination of Available Funds.--Paragraph (3) of section
8003(f) of the Elementary and Secondary Education Act of 1965 (20
U.S.C. 7703(f)) is amended--
(1) in the matter preceding subclause (I) of subparagraph
(A)(iii), by inserting ``, except as provided in subparagraph
(C),'' after ``but''; and
(2) by adding at the end the following new subparagraph:
``(C) Determination of available funds.--When determining
the amount of funds available to the local educational agency
for current expenditures for purposes of subparagraph (A)(iii)
for a fiscal year, the Secretary shall include, with respect to
the local educational agency's opening cash balance for such
fiscal year, the portion of such balance that is the greater
of--
``(i) the amount that exceeds the maximum amount of
funds for current expenditures that the local educational
agency was allowed by State law to carry over from the
prior fiscal year, if State restrictions on such amounts
were applied uniformly to all local educational agencies in
the State; or
``(ii) the amount that exceeds 30 percent of the local
educational agency's operating costs for the prior fiscal
year.''.
(c) Effective Date.--The amendments made by subsections (a) and (b)
shall apply with respect to fiscal years after fiscal year 1996.

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Section 8002 of the Elementary and Secondary Education Act of 1965
(20 U.S.C. 7702) (as amended by section 1) is further amended by adding
at the end thereof the following new subsection:
``(i) Priority Payments.--Notwithstanding subsection (b)(1)(B), and
for any fiscal year beginning with fiscal year 1997 for which the
amount appropriated to carry out this section exceeds the amount so
appropriated for fiscal year 1996, the Secretary shall first use such
excess amount to increase the payment that would otherwise be made
under this section to not more than 50 percent of the maximum amount
determined under subsection (b) for any local educational agency that--
``(1) received a payment under this section for fiscal year
1996;
``(2) serves a school district that contains all or a portion
of a United States military academy;
``(3) serves a school district in which the local tax assessor
has certified that at least 60 percent of the real property is
federally owned; and
``(4) demonstrates to the satisfaction of the Secretary that
such agency's per-pupil revenue derived from local sources for
current expenditures is not less than that revenue for the
preceding fiscal year.''.

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(a) In General.--The Secretary of Education shall treat any State
as having met the requirements of section 5(d)(2)(A) of the Act of
September 30, 1950 (Public Law 874, 81st Congress) for fiscal year 1991
(as such section was in effect for such fiscal year), and as not having
met those requirements for each of the fiscal years 1992, 1993, and
1994 (as such section was in effect for fiscal year 1992, 1993, and
1994, respectively), if--
(1) the State's program of State aid was not certified by the
Secretary under section 5(d)(2)(C)(i) of the Act of September 30,
1950 (Public Law 874, 81st Congress) for any fiscal year prior to
fiscal year 1991;
(2) the State submitted timely notice under that section of the
State's intention to seek that certification for fiscal year 1991;
(3) the Secretary determined that the State did not meet the
requirements of section 5(d)(2)(A) of such Act for fiscal year
1991; and
(4) the State made a payment to each local educational agency
in the State (other than a local educational agency that received a
payment under section 3(d)(2)(B) of such Act for fiscal year 1991)
in an amount equal to the difference between the amount such agency
received under such Act for fiscal year 1991 and the amount such
agency would have received under such Act for fiscal year 1991 if
payments under such Act had not been taken into consideration in
awarding State aid to such agencies for fiscal year 1991.
(b) Repayment Not Required.--Notwithstanding any other provision of
law, any local educational agency in a State that meets the
requirements of paragraphs (1) through (4) of subsection (a) and that
received funds under section 3(d)(2)(B) of the Act of September 30,
1950 (Public Law 874, 81st Congress) for fiscal year 1991 (as such
section was in effect for such fiscal year) shall not, by virtue of
subsection (a), be required to repay those funds to the Secretary of
Education.

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EDUCATIONAL AGENCY SERVING THE NORTH HANOVER TOWNSHIP
PUBLIC SCHOOLS, NEW JERSEY, UNDER PUBLIC LAW 874, 81ST
CONGRESS.
The Secretary of Education shall not consider any funds that the
Secretary of Education determines the local educational agency serving
the North Hanover Township Public Schools, New Jersey, has designated
for a future liability under an early retirement incentive program as
funds available to such local educational agency for purposes of
determining the eligibility of such local educational agency for a
payment for fiscal year 1994, or the amount of any such 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 for such fiscal year.

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(a) Computation.--The Secretary of Education shall compute a
payment for a local educational agency under the Act of September 30,
1950 (Public Law 874, 81st Congress) for each of the fiscal years 1991
through 1994 (as such Act was in effect for each of those fiscal years,
as the case may be) using a corrected local contribution rate based on
generally comparable school districts, if--
(1) an incorrect local contribution rate was submitted to the
Secretary of Education by the State in which such agency is
located, and the incorrect local contribution rate was verified as
correct by the Secretary of Education; and
(2) the corrected local contribution rate is subject to review
by the Secretary of Education.
(b) Payment.--Using funds appropriated under the Act of September
30, 1950 (Public Law 874, 81st Congress) for fiscal years 1991 through
1994 that remain available for obligation (if any), the Secretary of
Education shall make payments based on the computations described in
subsection (a) to the local educational agency for such fiscal years.

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Subparagraph (A) of section 8009(b)(2) of the Elementary and
Secondary Education Act of 1965 (20 U.S.C. 7709(b)(2)) is amended by
striking ``more than'' and all that follows through the period and
inserting ``more than 25 percent.''.
Speaker of the House of Representatives.
Vice President of the United States and
President of the Senate.

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Impact Aid Technical Amendments of 1996 — HR. 3269

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