§ 7707. — Construction.
[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
January 24, 2002 and December 19, 2002]
[CITE: 20USC7707]
TITLE 20--EDUCATION
CHAPTER 70--STRENGTHENING AND IMPROVEMENT OF ELEMENTARY AND SECONDARY
SCHOOLS
SUBCHAPTER VIII--IMPACT AID
Sec. 7707. Construction
(a) Construction payments authorized
(1) In general
From 40 percent of the amount appropriated for each fiscal year
under section 7714(e) of this title, the Secretary shall make
payments in accordance with this subsection to each local
educational agency that receives a basic support payment under
section 7703(b) of this title for that fiscal year.
(2) Additional requirements
A local educational agency that receives a basic support payment
under section 7703(b)(1) of this title shall also meet at least one
of the following requirements:
(A) The number of children determined under section
7703(a)(1)(C) of this title for the agency for the preceding
school year constituted at least 50 percent of the total student
enrollment in the schools of the agency during the preceding
school year.
(B) The number of children determined under subparagraphs
(B) and (D)(i) of section 7703(a)(1) of this title for the
agency for the preceding school year constituted at least 50
percent of the total student enrollment in the schools of the
agency during the preceding school year.
(3) Amount of payments
(A) Local educational agencies impacted by military dependent
children
The amount of a payment to each local educational agency
described in this subsection that is impacted by military
dependent children for a fiscal year shall be equal to--
(i)(II) 20 percent of the amount appropriated under
section 7714(e) of this title for such fiscal year; divided
by
(II) the total number of weighted student units of
children described in subparagraphs (B) and (D)(i) of
section 7703(a)(1) of this title for all local educational
agencies described in this subsection (as calculated under
section 7703(a)(2) of this title), including the number of
weighted student units of such children attending a school
facility described in section 7708(a) of this title if the
Secretary does not provide assistance for the school
facility under that section for the prior fiscal year;
multiplied by
(ii) the total number of such weighted student units for
the agency.
(B) Local educational agencies impacted by children who reside
on Indian lands
The amount of a payment to each local educational agency
described in this subsection that is impacted by children who
reside on Indian lands for a fiscal year shall be equal to--
(i)(I) 20 percent of the amount appropriated under
section 7714(e) of this title for such fiscal year; divided
by
(II) the total number of weighted student units of
children described in section 7703(a)(1)(C) of this title
for all local educational agencies described in this
subsection (as calculated under section 7703(a)(2) of this
title); multiplied by
(ii) the total number of such weighted student units for
the agency.
(4) Use of funds
Any local educational agency that receives funds under this
subsection shall use such funds for construction, as defined in
section 7713(3) of this title.
(b) School facility emergency and modernization grants authorized
(1) In general
From 60 percent of the amount appropriated for each fiscal year
under section 7714(e) of this title, 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 of 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 emergency grants from local educational agencies that meet
the requirements of subparagraph (C) or (D) of paragraph (3)
and, among such applications for emergency grants, shall give
priority to those applications of local educational agencies
based on the severity of the emergency, as determined by the
Secretary.
(C) 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 of local educational agencies based on the
severity of the need for modernization, as determined by the
Secretary.
(D) The Secretary shall next give priority to applications
for modernization grants from local educational agencies that
meet the requirements of subparagraph (C) or (D) of paragraph
(3) and, among such applications for modernization grants, shall
give priority to those applications of 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;
(II) has minimal capacity to issue bonds and is at
not less than 75 percent of the agency's limit of bonded
indebtedness; or
(III) does not meet the requirements of subclauses
(I) and (II) but is eligible to receive funds under
section 7703(b)(2) of this title for the fiscal year;
and
(ii) the agency is eligible to receive assistance under
subsection (a) of this section 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)(C) if--
(i) the agency is eligible to receive assistance under
this subchapter for the fiscal year;
(ii) 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) meets the requirements of
subclause (I), (II), or (III) of subparagraph (A)(i); and
(iii) the agency has facility needs resulting from the
presence of the Federal Government, such as the enrollment
of federally connected children, the presence of tax-exempt
Federal property, or an increase in enrollment due to the
expansion of Federal activities, housing privatization, or
the acquisition of Federal property.
(C) Additional eligibility for emergency and modernization
grants
(i) A local educational agency is eligible to receive an
emergency grant or a modernization grant under subparagraph (B)
or (D) of paragraph (2), respectively, if the agency meets the
following requirements:
(I) The agency receives a basic support payment under
section 7703(b) of this title for the fiscal year and the
agency meets at least one of the following requirements:
(aa) The number of children determined under section
7703(a)(1)(C) of this title for the agency for the
preceding school year constituted at least 40 percent of
the total student enrollment in the schools of the
agency during the preceding school year.
(bb) The number of children determined under
subparagraphs (B) and (D)(i) of section 7703(a)(1)of
this title for the agency for the preceding school year
constituted at least 40 percent of the total student
enrollment in the schools of the agency during the
preceding school year.
(II) 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) is at not less than 75
percent of the agency's limit of bonded indebtedness.
(III) The agency has an assessed value of real property
per student that may be taxed for school purposes that is
less than the average of the assessed value of real property
per student that may be taxed for school purposes in the
State in which the local educational agency is located.
(ii) A local educational agency is also eligible to receive
a modernization grant under this subparagraph if the agency is
eligible to receive assistance under section 7702 of this title
for the fiscal year and meets the requirements of subclauses
(II) and (III) of clause (i).
(D) Special rule
(i) In general
Any school described in clause (ii) that desires to
receive an emergency grant or a modernization grant under
subparagraph (B) or (D) of paragraph (2), respectively,
shall, except as provided in the following sentence, submit
an application in accordance with paragraph (6), and shall
otherwise be treated as a local educational agency for the
purpose of this subsection. The school shall submit an
application for the grant to the local educational agency of
such school and the agency shall submit the application on
behalf of the school to the Secretary.
(ii) School described
A school described in this clause is a school that meets
the following requirements:
(I) The school is located within the geographic
boundaries of a local educational agency that does not
meet the applicable eligibility requirements under
subparagraph (A), (B), or (C) for a grant under this
subsection.
(II) The school meets at least one of the following
requirements:
(aa) The number of children determined under
section 7703(a)(1)(C) of this title for the school
for the preceding school year constituted at least
40 percent of the total student enrollment in the
school during the preceding school year.
(bb) The number of children determined under
subparagraphs (B) and (D)(i) of section 7703(a)(1)
of this title for the school for the preceding
school year constituted at least 40 percent of the
total student enrollment in the school during the
preceding school year.
(III) The school is located within the geographic
boundaries of a local educational agency that meets the
requirements of subclauses (II) and (III) of
subparagraph (C)(i).
(E) 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, if applicable, for capital expenditures) 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) of this section, 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 7703(a)(1) of
this title 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) or (III) of paragraph
(3)(A)(i) for purposes of eligibility under subparagraph
(A) or (B) of paragraph (3) or that meets the
requirements of clause (i) or (ii) of paragraph (3)(C)
for purposes of eligibility under such paragraph (3)(C),
or to a school that is eligible under paragraph (3)(D)--
(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 7703(a)(1) of this title 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.
(Pub. L. 89-10, title VIII, Sec. 8007, as added Pub. L. 103-382, title
I, Sec. 101, Oct. 20, 1994, 108 Stat. 3763; amended Pub. L. 104-134,
title I, Sec. 101(d) [title III, Sec. 306(b)], Apr. 26, 1996, 110 Stat.
1321-211, 1321-236; renumbered title I, Pub. L. 104-140, Sec. 1(a), May
2, 1996, 110 Stat. 1327; Pub. L. 106-398, Sec. 1 [[div. A], title XVIII,
Sec. 1811], Oct. 30, 2000, 114 Stat. 1654, 1654A-383; Pub. L. 107-110,
title VIII, Sec. 803, Jan. 8, 2002, 115 Stat. 1950.)
Amendments
2002--Subsec. (b). Pub. L. 107-110 amended heading and text
generally, reorganizing and revising provisions relating to emergency
and modernization grants.
2000--Pub. L. 106-398 amended section generally. Prior to amendment,
section consisted of subsecs. (a) to (c) authorizing payments to certain
local educational agencies for construction.
1996--Subsec. (a)(2)(B). Pub. L. 104-134 struck out ``and in which
the agency at any 2 times during the four fiscal years preceding October
20, 1994, was denied by a vote of the agency's eligible voters a bond
referendum for the purposes of school construction or renovation''
before semicolon at end.
Effective Date of 2002 Amendment
Amendment by Pub. L. 107-110 effective Jan. 8, 2002, and effective
with respect to appropriations for use under this subchapter for fiscal
year 2002, see section 5 of Pub. L. 107-110, set out as an Effective
Date note under section 6301 of this title.
Section Referred to in Other Sections
This section is referred to in section 7714 of this title.
