Section 8002 of the Elementary and Secondary Education Act

The Impact Aid Program Statute
(Title VIII of the Elementary and Secondary Education Act of 1965),
as amended through January 12, 2002
SEC. 8002. [20 U.S.C. 7702] 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 (determined as of the time or times when so acquired)
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 for such fiscal year under this section,
whichever is greater.
(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.
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(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
district 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
st
Act of September 30, 1950 (Public Law 874, 81 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 make payments to each local educational agency under this
section as follows:
(1) FOUNDATION PAYMENTS FOR PRE-1995 RECIPIENTS. —
(A) IN GENERAL.—The Secretary shall first make a foundation payment to each local
educational agency that is eligible to receive a payment under this section for the
fiscal year involved and that filed, or has been determined pursuant to statue to have
filed a timely application, and met, or has been determined pursuant to statute to
meet the eligibility requirements of section 2(a)(1)(C) of the Act of September 30,
st
1950 (Public Law 874, 81 Congress) (as such section was in effect on the day
preceding the date of the enactment of the Improving America’s Schools Act of 1994)
for any of the fiscal years 1989 through 1994.
(B) AMOUNT. —The amount of a payment under subparagraph (A) for a local
educational agency shall be equal to 38 percent of the local educational agency’s
maximum entitlement amount under section 2 of the Act of September 30, 1950, for
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fiscal year 1994 (or if the local educational agency did not meet, or has not been
determined pursuant to statute to meet, the eligibility requirements of section
2(a)(1)(C) of the Act of September 30, 1950 for fiscal year 1994, the local educational
agency’s maximum entitlement amount under such section 2 for the most recent
fiscal year preceding 1994).
(C) INSUFFICIENT APPROPRIATIONS. —If the amount appropriated under section
8014(a) is insufficient to pay the full amount determined under this paragraph for all
eligible local educational agencies for the fiscal year, then the Secretary shall ratably
reduce the payment to each local educational agency under this paragraph.
(2) PAYMENTS FOR 1995 RECIPIENTS.—
(A) IN GENERAL.—From any amounts remaining for the fiscal year involved, the
Secretary shall make a payment to each eligible local educational agency that
received a payment under this section for fiscal year 1995 or whose application under
this section for fiscal year 1995 was determined pursuant to statute to be timely filed
for purposes of payments for subsequent fiscal years.
(B) AMOUNT.—The amount of a payment under subparagraph (A) for a local
educational agency shall be determined as follows:
(i) Calculate the difference between the amount appropriated to carry out this section
for fiscal year 1995 and the total amount of foundation payments made under
paragraph (1) for the fiscal year.
(ii) Determine the percentage share for each local educational agency described in
subparagraph (A) by dividing the assessed value of the Federal property of the
local educational agency for fiscal year 1995 determined in accordance with
subsection (b)(3), by the total eligible national assessed value of the eligible
Federal property of all such local educational agencies for fiscal year 1995, as so
determined.
(iii) Multiply the percentage share described in clause (ii) for the local educational
agency by the amount determined under clause (I).
(3) SUBSECTION (I) RECIPIENTS.—From any funds remaining after making payments
under paragraphs (1) and (2) for the fiscal year involved, the Secretary shall make
payments in accordance with subsection (I).
(4) REMAINING FUNDS.—From any funds remaining after making payments under
paragraphs (1), (2) and (3) for the fiscal year involved—
(A) the Secretary shall make a payment to each local educational agency that received a
foundation payment under paragraph (1) for the fiscal year involved in an amount
that bears the same relation to 25 percent of the remainder as the amount the local
educational agency received under paragraph (1) for the fiscal year involved bears to
the amount all local educational agencies received under paragraph (1) for the fiscal
year involved; and
(B) the Secretary shall make a payment to each local educational agency that is eligible
to receive a payment under this section for the fiscal year involved in an amount that
bears the same relation to 75 percent of the remainder as a percentage share
determined for the local educational (by dividing the maximum amount that the
agency is eligible to receive under subsection (b) by the total of the maximum
amounts for all such agencies) bears to the percentage share determined (in the
same manner) for all local educational agencies eligible to receive a payment under
this section for the fiscal year involved, except that, for the purpose of calculating a
local educational agency’s maximum amount under subsection (b), data from the
most current fiscal year shall be used.
(i) SPECIAL PAYMENTS—
(1) IN GENERAL.—For any fiscal year beginning with fiscal year 2000 for which the amount
appropriated to carry out this section exceeds the amount so appropriated for fiscal year
1996 and for which subsection (b)(1)(B) applies, the Secretary shall use the remainder
described in subsection (h)(3) for the fiscal year involved (not to exceed the amount
equal to the difference between (A) the amount appropriated to carry out this section for
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fiscal year 1997 and (A) the amount appropriated to carry out this section for fiscal year
1996) 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 described in paragraph (2).
(2) LOCAL EDUCATIONAL AGENCY DESCRIBED.—A local educational agency described
in this paragraph is a local educational agency that—
(A) received a payment under this section for fiscal year 1996;
(B) serves a school district that contains all or a portion of a United States military
academy;
(C) 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
(D) 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 year.
(j) (Deleted by P.L. 107-110, January 8, 2002)
(k) 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.
(l) 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).
(m) 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 enactment of the Impact Aid
Reauthorization Act of 2000 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
5 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 enactment of the Impact Aid Reauthorization Act of 2000
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 5 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 enactment of the Impact Aid Reauthorization Act of 2000 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 5 years after the date of acquisition.
(n) 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
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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.'.

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