Sec. 403. Payments for eligible federally connected children
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Section 8003(a) ( 20 U.S.C. 7703(a) ) is amended— in the matter preceding subparagraph
(A)of paragraph (1), by inserting after schools of such agency the following: (including those children enrolled in such agency as a result of the open enrollment policy of the State in which the agency is located, but not including children who are enrolled in a distance education program at such agency and who are not residing within the geographic boundaries of such agency) ; and in paragraph (5)(A), by striking 1984 and all that follows through situated and inserting 1984, or under lease of off-base property under subchapter IV of . chapter 169 of title 10, United States Code, to be children described under paragraph (1)(B) if the property described is within the fenced security perimeter of the military facility or attached to and under any type of force protection agreement with the military installation upon which such housing is situated Section 8003(b) ( 20 U.S.C. 7703(b) ) is amended— by striking section 8014(b) each place it appears and inserting section 3(d)(2) ; in paragraph (1), by repealing subparagraph (E); in paragraph (2)— in subparagraph (A), by inserting at the end the following: The Secretary shall— deem each local educational agency that received a basic support payment under this paragraph for fiscal year 2009 as eligible to receive a basic support payment under this paragraph for each of fiscal years 2012, 2013, and 2014; and make a payment to each such local educational agency under this paragraph for each of fiscal years 2012, 2013, and 2014. ; and in subparagraph (B)— by striking in the heading; continuing by amending clause
(i)to read as follows: A heavily impacted local educational agency is eligible to receive a basic support payment under subparagraph
(A)with respect to a number of children determined under subsection (a)(1) if the agency— is a local educational agency— whose boundaries are the same as a Federal military installation or an island property designated by the Secretary of the Interior to be property that is held in trust by the Federal Government; and that has no taxing authority; is 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 that is not less than 45 percent; has a per-pupil expenditure that is less than— for an agency that has a total student enrollment of 500 or more students, 125 percent of the average per-pupil expenditure of the State in which the agency is located; or for any agency that has a total student enrollment less than 500, 150 percent of the average per-pupil expenditure of the State in which the agency is located or the average per-pupil expenditure of 3 or more comparable local educational agencies in the State in which the agency is located; and is an agency that— has a tax rate for general fund purposes that is not less than 95 percent of the average tax rate for general fund purposes of comparable local educational agencies in the State; or was eligible to receive a payment under this subsection for fiscal year 2013 and is located in a State that by State law has eliminated ad valorem tax as a revenue for local educational agencies; is 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 that is not less than 20 percent; for the 3 fiscal years preceding the fiscal year for which the determination is made, the average enrollment of children who are not described in subsection (a)(1) and who are eligible for a free or reduced price lunch under the Richard B. Russell National School Lunch Act constitutes a percentage of the total student enrollment of the agency that is not less than 65 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; is a local educational agency that has a total student enrollment of not less than 25,000 students, of which— not less than 50 percent are children described in subsection (a)(1); and not less than 5,500 of such children are children described in subparagraphs
(A)and
(B)of subsection (a)(1); or is a local educational agency that— has an enrollment of children described in subsection (a)(1) including, for purposes of determining eligibility, those children described in subparagraphs
(F)and
(G)of such subsection, that is not less than 35 percent of the total student enrollment of the agency; and was eligible to receive assistance under subparagraph
(A)for fiscal year 2001. ; and in clause (ii)— by striking A heavily and inserting the following: Subject to subclause (II), a heavily ; and by adding at the end the following: In a case of a heavily impacted local educational agency that is eligible to receive a basic support payment under subparagraph (A), but that has had, for 2 consecutive fiscal years, a tax rate for general fund purposes that falls below 95 percent of the average tax rate for general fund purposes of comparable local educational agencies in the State, such agency shall be determined to be ineligible under clause
(i)and ineligible to receive a basic support payment under subparagraph
(A)for each fiscal year succeeding such 2 consecutive fiscal years for which the agency has such a tax rate for general fund purposes, and until the fiscal year for which the agency resumes such eligibility in accordance with clause (iii). ; by striking subparagraph (C); by redesignating subparagraphs
(D)through
(H)as subparagraphs
(C)through (G), respectively; in subparagraph
(C)(as so redesignated)— in the heading, by striking ; regular by striking Except as provided in subparagraph
(E)and inserting Except as provided in subparagraph
(D); by amending subclause
(I)of clause
(ii)to read as follows: 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 that has 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, 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. Notwithstanding subitem (aa), a local educational agency that received a payment under this paragraph for fiscal year 2013 shall not be required to have an enrollment of children described in subparagraphs (A), (B), or
(C)of subsection (a)(1) equal to at least 10 percent of the agency’s total enrollment. ; and by amending subclause
(III)of clause
(ii)by striking (B)(i)(II)(aa) and inserting subparagraph (B)(i)(I) ; in subparagraph (D)(i)(II) (as so redesignated), by striking 6,000 and inserting 5,500 ; in subparagraph
(E)(as so redesignated)— by striking Secretary and all that follows through shall use and inserting Secretary shall use ; by striking ; and and inserting a period; and by striking clause (ii); in subparagraph
(F)(as so redesignated), by striking subparagraph (C)(i)(II)(bb) and inserting subparagraph (B)(i)(II)(bb)(BB) ; in subparagraph
(G)(as so redesignated)— in clause (i)— by striking subparagraph (B), (C), (D), or
(E)and inserting subparagraph (B), (C), or
(D); by striking by reason of and inserting due to ; 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 by inserting before the period, the following: or during such time as activities associated with base closure and realignment, modularization, force structure change, or force relocation are ongoing ; and in clause (ii), by striking
(D)or
(E)each place it appears and inserting
(C)or
(D); in paragraph (3)— in subparagraph (B)— by amending clause
(iii)to read as follows: In the case of a local educational agency providing a free public education to students enrolled in kindergarten through grade 12, but which enrolls students described in subparagraphs (A), (B), and
(D)of subsection (a)(1) only in grades 9 through 12, and which received a final payment in fiscal year 2009 calculated under this paragraph (as this paragraph was in effect on the day before the date of enactment of the Student Success Act) for students in grades 9 through 12, the Secretary shall, in calculating the agency’s payment, consider only that portion of such agency’s total enrollment of students in grades 9 through 12 when calculating the percentage under clause (i)(I) and only that portion of the total current expenditures attributed to the operation of grades 9 through 12 in such agency when calculating the percentage under clause (i)(II). ; and by adding at the end the following: In the case of a local educational agency that is providing a program of distance education to children not residing within the geographic boundaries of the agency, the Secretary shall— for purposes of the calculation under clause (i)(I), disregard such children from the total number of children in average daily attendance at the schools served by such agency; and for purposes of the calculation under clause (i)(II), disregard any funds received for such children from the total current expenditures for such agency. ; in subparagraph (C), by striking subparagraph
(D)or
(E)of paragraph (2), as the case may be and inserting paragraph (2)(D) ; and by amending subparagraph
(D)to read as follows: 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— 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 of the excess sums, by 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. ; and by inserting at the end the following new subparagraphs: For each fiscal year described in subparagraph
(A)for which the sums appropriated under section 3(d)(2) are insufficient to pay each local educational agency all of the local educational agency’s threshold payment described in subparagraph (D), the Secretary shall ratably reduce the payment to each local educational agency under this paragraph. If the sums appropriated under section 3(d)(2) are sufficient to increase the threshold payment above the 100 percent threshold payment described in subparagraph (D), then the Secretary shall increase payments on the same basis as such payments were reduced, except no local educational agency may receive a payment amount greater than 100 percent of the maximum payment calculated under this subsection. ; and in paragraph (4)— in subparagraph (A), by striking through
(D)and inserting and
(C); and in subparagraph (B), by striking subparagraph
(D)or
(E)and inserting subparagraph
(C)or
(D). Paragraph
(2)of section 8003(c) ( 20 U.S.C. 7703(c) ) is amended to read as follows: 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, for the first year of operation of such agency only; was eligible to receive a payment under this section for the previous fiscal year and has had an overall increase in enrollment (as determined by the Secretary in consultation with the Secretary of Defense, the Secretary of Interior, or the heads of other Federal agencies)— of not less than 10 percent, or 100 students, of children described in— subparagraph (A), (B), (C), or
(D)of subsection (a)(1); or subparagraph
(F)and
(G)of subsection (a)(1), but only to the extent such children are civilian dependents of employees of the Department of Defense or the Department of Interior; and that is the direct result of closure or realignment of military installations under the base closure process or the relocation of members of the Armed Forces and civilian employees of the Department of Defense as part of the force structure changes or movements of units or personnel between military installations or because of actions initiated by the Secretary of the Interior or the head of another Federal agency; or was eligible to receive a payment under this section for the previous fiscal year and has had an increase in enrollment (as determined by the Secretary)— of not less than 10 percent of children described in subsection (a)(1) or not less than 100 of such children; and that is the direct result of the closure of a local educational agency that received a payment under subsection (b)(1) or (b)(2) in the previous fiscal year. . Section 8003(d)(1) ( 20 U.S.C. 7703(d) ) is amended by striking section 8014(c) and inserting section 3(d)(3) . Section 8003(e) ( 20 U.S.C. 7703(e) ) is amended— by amending paragraph
(1)to read as follows: Subject to paragraph (2), the total amount the Secretary shall pay a local educational agency under subsection (b)— for fiscal year 2014, shall not be less than 90 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 2013; for fiscal year 2015, shall not be less than 85 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 2013; and for fiscal year 2016, 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 2013. ; and by amending paragraph
(2)to read as follows: The total amount provided to a local educational agency under subparagraph (A), (B), or
(C)of paragraph
(1)for a fiscal year shall not exceed the maximum basic support payment amount for such agency determined under paragraph
(1)or
(2)of subsection (b), as the case may be, for such fiscal year. . Section 8003 (20 U.S.C. 7703) is amended by striking subsection (g).
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Sec. 403
Payments for eligible federally connected children
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