Impact Aid Fairness and Equity Act of 2011 - Amends the Elementary and Secondary Education Act of 1965, with respect to the Impact Aid program (which compensates local educational agencies (LEAs) for the financial burden of federal activities affecting their areas), to alter the formula for determining the payments due LEAs for federal ownership of property in their areas.
Prohibits LEAs from being paid amounts that: (1) exceed their total current expenditures in the second prior fiscal year; or (2) are less than 85% of their payment for the prior fiscal year, in FYs 2012, 2013, and 2014.
Requires the ratable reduction of payments due LEAs for federal ownership of property when appropriations for a fiscal year are insufficient to provide them with full compensation.
Alters the formula for determining the payments due LEAs for eligible federally-connected children.
Includes not only children in average daily attendance, but also those enrolled pursuant to a state open enrollment policy. Caps such payments for heavily impacted LEAs at the amount needed to raise their per-pupil expenditures to the higher of 110% of the average per-pupil expenditure of their state or the average per-pupil expenditure of three comparable LEAs. Continues a heavily impacted LEA's eligibility for such payments while activities associated with military base closures and realignments or force structure changes or relocations are ongoing.
Alters the formula for determining the construction payments due LEAs that are eligible for other Impact Aid payments.
Requires the Secretary of Education to use all Impact Aid construction appropriations to award: (1) emergency construction grants to LEAs that have no practical capacity, or minimal capacity, to issue bonds or are otherwise eligible for Impact Aid and have a school facility emergency; and (2) modernization grants to LEAs that are eligible for other Impact Aid payments.
[Congressional Bills 112th Congress]
[From the U.S. Government Publishing Office]
[H.R. 472 Introduced in House (IH)]
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 Representatives 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''.
SEC. 2. AMENDMENTS TO SECTION 8002 (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 to read as follows:
``SEC. 8002. PAYMENTS RELATING TO FEDERAL ACQUISITION OF REAL PROPERTY.
``(a) In General.--Where the Secretary, after consultation with any
local educational agency and with the appropriate State educational
agency, determines for a fiscal year ending prior to October 1, 2003--
``(1) that the United States owns Federal property 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 official referred to in
subsection (b)(3) or, when such original records are
not available due to unintentional destruction (such as
natural disaster, fire, flooding, pest infestation, or
deterioration 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
educational agency (similarly determined as of
the time or times when such Federal property
was so acquired); or
``(ii) all real property in the local
educational 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
agency is not made at the same time or
times that such Federal property was so
acquired and assessed; and
``(II) State law requires an
assessment be made of property so
acquired; and
``(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 described in subsection (b).
``(b) Amount.--
``(1) In general.--(A)(i)(I) Subject to subclauses (II) and
(III), the amount that a local educational 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
during the previous fiscal year from activities conducted on
Federal property eligible under this section and located in a
school district served by the agency, including amounts
received from any Federal department or agency (other than the
Department of Education) from such activities, by reason of
receipt of 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 eligible
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 during the previous
fiscal year from activities conducted on Federal property shall
not include payments received 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 education to
dependents of members of the Armed Forces residing on
or near a military installation.
``(B) If funds appropriated under section 8014(a) are
insufficient to pay the amount determined under subparagraph
(A), the Secretary shall calculate the payment for each
eligible local educational 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 section 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 percent 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 current levied real property tax rate for
current expenditures levied by fiscally independent local
educational agencies, or imputed for fiscally dependent local
educational agencies, to the current annually determined
aggregate assessed value of such acquired Federal property.
``(3) Determination of aggregate assessed 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 assessing the value of
real property located in the jurisdiction of such local
educational agency for the purpose of levying a property tax.
``(c) Applicability to Tennessee Valley Authority Act.--For the
purpose of this section, any real property with respect to which
payments are being made 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 Federal
Government (or its agent), prohibits the sale, lease,
assignment, or other disposal of the property unless
such sale, lease, assignment, or other disposal is to
another eligible government agency; and
``(E) reserves to the Federal Government a right of
reversion at any time the Federal Government (or its
agent) deems it necessary for the national defense.
``(e) Local Educational Agency Containing Forest Service Land and
Serving Certain Counties.--Beginning with fiscal year 1995, a local
educational 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 forest 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 between
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 limiting 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 requirements
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 District, 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, California; 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 Secretary
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 Secretary shall treat the
Hueneme, California local educational 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 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) 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 payment 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 County, 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 Valley,
Pennsylvania local educational agency as if it had filed a
timely application under section 2 of Public Law 81-874 for
fiscal year 1994.
``(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, including 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 property; and
``(2) shall use data from the second prior fiscal year with
respect to determining the amount of revenue referred to in
subsection (b)(1)(A)(i).
``(k) Eligibility.--
``(1) Old federal property.--Except as provided in
paragraph (2), a local educational agency 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 payment under
this section not later than 7 years after the date of the
enactment of such Act.
``(2) Combined federal property.--A local educational
agency 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 if--
``(A) the Federal property, when combined with
other Federal property in the school district served by
the local educational agency acquired 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 acquisition of the
Federal property acquired after the date of the
enactment of such Act.
``(3) New federal property.--A local educational agency
that is eligible to receive a payment under this section for
Federal property acquired by the Federal Government after 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 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 described 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 described.--A local
educational agency described in this paragraph is an agency
that--
``(A) was eligible for, and received, a payment
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 of the Federal property
involved to a non-Federal entity.''.
SEC. 3. AMENDMENTS TO SECTION 8003 (PAYMENTS FOR ELIGIBLE FEDERALLY
CONNECTED CHILDREN).
Section 8003 of the Elementary and Secondary Education Act of 1965
(20 U.S.C. 7703) is amended--
(1) in subsection (a)--
(A) in paragraph (1), in the matter preceding
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 children 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), respectively;
and
(ii) by inserting after subparagraph (C)
the following:
``(D) Multiply the number of children described in
subparagraphs (A) and (B) of paragraph (1) by a factor
of 1.35 if the local educational 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 Government
and the agency has no taxing authority;
``(II) has an enrollment of
children described in subsection (a)(1)
that constitutes a percentage of the
total student enrollment of the agency
that is not less than 45 percent;
``(III) has a per-pupil expenditure
that is less than--
``(aa) for a local
educational agency that has a
total student enrollment of 350
or more students, 150 percent
of the average per-pupil
expenditure of the State in
which the agency is located; or
``(bb) for a local
educational agency that has a
total student enrollment of
less than 350 students--
``(AA) 150 percent
of the average per-
pupil expenditure 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;
``(IV) has a tax rate for general
fund purposes that is at least 95
percent of the average tax rate for
general fund purposes of comparable
local educational agencies in the
State; and
``(V) for a local educational
agency 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
purposes which is not less than 125
percent of the average tax rate for
general fund purposes for comparable
local educational agencies in the
State;''; and
(iii) by adding at the end the following:
``(iv) Special rule.--Notwithstanding
clause (i)(II), a local educational agency
shall be considered eligible to receive a basic
support payment under subparagraph (A) with
respect to the number of children determined
under subsection (a)(1) if the agency--
``(I) has an enrollment of children
described in subsection (a)(1) that
constitutes a percentage of the total
student enrollment of the agency that
is not less than 35 percent including
for purposes of determining eligibility
those children described in
subparagraph (F) and (G) of subsection
(a)(1); and
``(II) was eligible to receive
assistance 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 impacted local
educational agencies.--
``(i) In general.--The maximum amount that
a heavily impacted local educational agency is
eligible to receive under this paragraph for
any fiscal year is the sum of the total
weighted student units, as computed under
subsection (a)(2) and subject 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
preceding 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
preceding 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 student enrollment
of the schools of the agency 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 enrollment, the Secretary shall
calculate the 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 agency
that received a payment under this clause in
fiscal year 2006, the local educational 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 number 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 of weighted student
units for purposes of subsection (a)(2) by
multiplying the number 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 expenditure 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
inserting ``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
(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 period
at the end the following: ``or during
such time as activities associated with
base closure and realignment,
modularization, force structure change,
or force relocation is ongoing''; and
(ii) in clause (ii)--
(I) by striking ``(D) or (E), as
the case may be,'' and inserting
``(C)''; and
(II) by striking ``(D) or (E)
under'' and inserting ``(C) under'';
(3) in subsection (b)(3)(B)--
(A) by redesignating clause (iv) as (v); and
(B) by inserting after clause (iii) the following:
``(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 calculating the total current
expenditures attributed to the operation of
such agency when calculating the percentage
under subclause (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 subparagraph (D) to
read as follows:
``(D) Ratable distribution.--For any fiscal year
described in subparagraph (A) for which the sums
available exceed the amount required 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 educational 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 excess 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 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 education agency--
``(A) for fiscal year 2012 shall not be less than
90 percent of the total amount that the local education
agency received under subsection (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 subsection (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 local
educational agency received under subsection (b)(1),
(b)(2), or (b)(2)(B)(ii) for fiscal year 2009, of which
such amount shall be considered a foundation payment
for each succeeding fiscal year until such time as the
agency'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 eligible 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, payments 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. 4. AMENDMENTS TO SECTION 8007 (CONSTRUCTION).
Section 8007 of the Elementary and Secondary Education Act of 1965
(20 U.S.C. 7707) is amended to read as follows:
``SEC. 8007. CONSTRUCTION.
``(a) School Facility Emergency and Modernization Grants
Authorized.--
``(1) In general.--From 100 percent of the amount
appropriated for each fiscal year under section 8014(e), the
Secretary--
``(A) shall award emergency grants in accordance
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 accordance 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 applications for
emergency grants, shall give priority to those
applications from local educational agencies based on
the severity of the emergency, as determined by the
Secretary.
``(B) The Secretary shall next give priority to
applications for modernization grants from local
educational agencies that meet the requirements 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 educational agency
is eligible to receive an emergency 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
``(II) has minimal capacity to
issue bonds and is at not less than 75
percent of the agency's limit of bonded
indebtedness; or
``(ii) the agency is eligible to receive
assistance under subsection (a) for the fiscal
year and has a school facility emergency, 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 modernization grant
under paragraph (2)(B) if--
``(i) the agency receives a basic support
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 purposes of
subparagraph (A)(i), a local educational agency--
``(i) has no practical capacity to issue
bonds if the total assessed value of real
property that may be taxed for school purposes
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 purposes is at
least $25,000,000 but not more than
$50,000,000.
``(4) Award criteria.--In awarding emergency 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
indebtedness;
``(ii) the assessed value of real property
per student that may be taxed for school
purposes compared to the average of the
assessed value of real property per student
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 expenditures,
if applicable) compared to the average total
tax rate for school purposes (or the average
capital expenditure tax rate, if applicable) in
the State in which the agency is located; and
``(iv) funds that are available to the
agency, from any other source, including
subsection (a), that may be used for capital
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 children
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 facility 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
modernization, as measured by such factors as--
``(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
utilize technology or offer a
curriculum in accordance with
contemporary State standards due to the
physical limitations of the current
school facility; and
``(ii) the age of the school facility
proposed 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)--
``(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
period.
``(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 emergency grant or
modernization grant awarded 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
facilities that are primarily used for
athletic contests, exhibitions, or
other events for which admission is
charged to the general public; or
``(III) the acquisition of real
property.
``(iii) Supplement, not supplant.--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 absence of the Federal funds provided under
the grant, be made available from non-Federal
sources to carry out emergency repairs 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 authorize the
payment of maintenance costs in connection with
any school facility modernized in whole or in
part with Federal funds provided under this
subsection.
``(v) Environmental safeguards.--All
projects carried out with Federal funds
provided under this subsection shall comply
with all relevant Federal, State, and local
environmental laws and regulations.
``(vi) Carry-over of certain
applications.--A local educational agency that
applies for an emergency grant or a
modernization grant under this subsection for a
fiscal year and does not receive the grant for
the fiscal year shall have the application for
the grant considered for the following 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
replacement 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 modernization grant under
this subsection shall submit an application to the Secretary at
such time, in such manner, and accompanied by such information
as the Secretary may require. Each application shall contain
the following:
``(A) A description of how the local educational
agency meets the award criteria under paragraph (4),
including the information described in clauses (i)
through (iv) of paragraph (4)(A) and subparagraphs (B)
and (C) of paragraph (4).
``(B) In the case of an application for an
emergency grant--
``(i) a description of the school facility
deficiency that poses a health or safety hazard
to the occupants of the facility and a
description of how the deficiency will be
repaired; and
``(ii) a signed statement from an
appropriate local official certifying that a
deficiency in the school facility threatens the
health or safety of the occupants of the
facility or that prevents the use of all or a
portion of the building.
``(C) In the case of an application for a
modernization grant--
``(i) an explanation of the need for the
school facility modernization project;
``(ii) the date on which original
construction of the facility to be modernized
was completed;
``(iii) a listing of the school facilities
to be modernized, including the number and
percentage of children determined under section
8003(a)(1) in average daily attendance in each
school facility; and
``(iv) a description of the ownership of
the property on which the current school
facility is located or on which the planned
school facility will be located.
``(D) A description of the project for which a
grant under this subsection will be used, including a
cost estimate for the project.
``(E) A description of the interest in, or
authority over, the school facility involved, such as
an ownership interest or a lease arrangement.
``(F) Such other information and assurances as the
Secretary may reasonably require.
``(7) Report.--
``(A) In general.--Not later than January 1 of each
year, the Secretary shall prepare and submit to the
appropriate congressional committees a report that
contains a justification for each grant awarded under
this subsection for the prior fiscal year.
``(B) Definition.--In this paragraph, the term
`appropriate congressional committees' means--
``(i) the Committee on Appropriations and
the Committee on Education and the Workforce of
the House of Representatives; and
``(ii) the Committee on Appropriations and
the Committee on Health, Education, Labor, and
Pensions of the Senate.''.
<all>
Introduced in House
Introduced in House
Referred to the House Committee on Education and the Workforce.
Referred to the Subcommittee on Early Childhood, Elementary, and Secondary Education.
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