§ 7709. — State consideration of payments in providing State aid.
[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
January 24, 2002 and December 19, 2002]
[CITE: 20USC7709]
TITLE 20--EDUCATION
CHAPTER 70--STRENGTHENING AND IMPROVEMENT OF ELEMENTARY AND SECONDARY
SCHOOLS
SUBCHAPTER VIII--IMPACT AID
Sec. 7709. State consideration of payments in providing State
aid
(a) General prohibition
Except as provided in subsection (b) of this section, a State may
not--
(1) consider payments under this subchapter in determining for
any fiscal year--
(A) the eligibility of a local educational agency for State
aid for free public education; or
(B) the amount of such aid; or
(2) make such aid available to local educational agencies in a
manner that results in less State aid to any local educational
agency that is eligible for such payment than such agency would
receive if such agency were not so eligible.
(b) State equalization plans
(1) In general
A State may reduce State aid to a local educational agency that
receives a payment under section 7702 or 7703(b) of this title
(except the amount calculated in excess of 1.0 under section
7703(a)(2)(B) of this title and, with respect to a local educational
agency that receives a payment under section 7703(b)(2) of this
title, the amount in excess of the amount that the agency would
receive if the agency were deemed to be an agency eligible to
receive a payment under section 7703(b)(1) of this title and not
section 7703(b)(2) of this title) for any fiscal year if the
Secretary determines, and certifies under subsection (c)(3)(A) of
this section, that the State has in effect a program of State aid
that equalizes expenditures for free public education among local
educational agencies in the State.
(2) Computation
(A) In general
For purposes of paragraph (1), a program of State aid
equalizes expenditures among local educational agencies if, in
the second fiscal year preceding the fiscal year for which the
determination is made, the amount of per-pupil expenditures made
by, or per-pupil revenues available to, the local educational
agency in the State with the highest such per-pupil expenditures
or revenues did not exceed the amount of such per-pupil
expenditures made by, or per-pupil revenues available to, the
local educational agency in the State with the lowest such
expenditures or revenues by more than 25 percent.
(B) Other factors
In making a determination under this subsection, the
Secretary shall--
(i) disregard local educational agencies with per-pupil
expenditures or revenues above the 95th percentile or below
the 5th percentile of such expenditures or revenues in the
State; and
(ii) take into account the extent to which a program of
State aid reflects the additional cost of providing free
public education in particular types of local educational
agencies, such as those that are geographically isolated, or
to particular types of students, such as children with
disabilities.
(3) Exception
Notwithstanding paragraph (2), if the Secretary determines that
the State has substantially revised its program of State aid, the
Secretary may certify such program for any fiscal year only if--
(A) the Secretary determines, on the basis of projected
data, that the State's program will meet the disparity standard
described in paragraph (2) for the fiscal year for which the
determination is made; and
(B) the State provides an assurance to the Secretary that,
if final data do not demonstrate that the State's program met
such standard for the fiscal year for which the determination is
made, the State will pay to each affected local educational
agency the amount by which the State reduced State aid to the
local educational agency.
(c) Procedures for review of State equalization plans
(1) Written notice
(A) In general
Any State that wishes to consider payments described in
subsection (b)(1) of this section in providing State aid to
local educational agencies shall submit to the Secretary, not
later than 120 days before the beginning of the State's fiscal
year, a written notice of such State's intention to do so.
(B) Contents
Such notice shall be in the form and contain the information
the Secretary requires, including evidence that the State has
notified each local educational agency in the State of such
State's intention to consider such payments in providing State
aid.
(2) Opportunity to present views
Before making a determination under subsection (b) of this
section, the Secretary shall afford the State, and local educational
agencies in the State, an opportunity to present their views.
(3) Qualification procedures
If the Secretary determines that a program of State aid
qualifies under subsection (b) of this section, the Secretary
shall--
(A) certify the program and so notify the State; and
(B) afford an opportunity for a hearing, in accordance with
section 7711(a) of this title, to any local educational agency
adversely affected by such certification.
(4) Nonqualification procedures
If the Secretary determines that a program of State aid does not
qualify under subsection (b) of this section, the Secretary shall--
(A) so notify the State; and
(B) afford an opportunity for a hearing, in accordance with
section 7711(a) of this title, to the State, and to any local
educational agency adversely affected by such determination.
(d) Treatment of State aid
(1) In general
If a State has in effect a program of State aid for free public
education for any fiscal year, which is designed to equalize
expenditures for free public education among the local educational
agencies of that State, payments under this subchapter for any
fiscal year may be taken into consideration by such State in
determining the relative--
(A) financial resources available to local educational
agencies in that State; and
(B) financial need of such agencies for the provision of
free public education for children served by such agency, except
that a State may consider as local resources funds received
under this subchapter only in proportion to the share that local
tax revenues covered under a State equalization program are of
total local tax revenues.
(2) Prohibition
A State may not take into consideration payments under this
subchapter before such State's program of State aid has been
certified by the Secretary under subsection (c)(3) of this section.
(e) Remedies for State violations
(1) In general
The Secretary or any aggrieved local educational agency may, not
earlier than 150 days after an adverse determination by the
Secretary against a State for violation of subsections (a) or (d)(2)
of this section or for failure to carry out an assurance under
subsection (b)(3)(B) of this section, and if an administrative
proceeding has not been concluded within such time, bring an action
in a United States district court against such State for such
violations or failure.
(2) Immunity
A State shall not be immune under the 11th amendment to the
Constitution of the United States from an action described in
paragraph (1).
(3) Relief
The court shall grant such relief as the court determines is
appropriate.
(Pub. L. 89-10, title VIII, Sec. 8009, as added Pub. L. 103-382, title
I, Sec. 101, Oct. 20, 1994, 108 Stat. 3764; amended Pub. L. 104-195,
Sec. 10, Sept. 16, 1996, 110 Stat. 2384; Pub. L. 106-398, Sec. 1 [[div.
A], title XVIII, Sec. 1812], Oct. 30, 2000, 114 Stat. 1654, 1654A-386;
Pub. L. 107-110, title VIII, Sec. 804, Jan. 8, 2002, 115 Stat. 1956.)
Amendments
2002--Subsec. (b)(1). Pub. L. 107-110 inserted ``and, with respect
to a local educational agency that receives a payment under section
7703(b)(2) of this title, the amount in excess of the amount that the
agency would receive if the agency were deemed to be an agency eligible
to receive a payment under section 7703(b)(1) of this title and not
section 7703(b)(2) of this title'' after ``section 7703(a)(2)(B) of this
title''.
2000--Subsec. (a)(1). Pub. L. 106-398, Sec. 1 [[div. A], title
XVIII, Sec. 1812(1)], struck out ``or under the Act of September 30,
1950 (Public Law 874, 81st Congress) (as such Act was in effect on the
day preceding October 20, 1994)'' after ``under this subchapter'' in
introductory provisions.
Subsec. (b)(1). Pub. L. 106-398, Sec. 1 [[div. A], title XVIII,
Sec. 1812(2)], amended heading and text of par. (1) generally. Prior to
amendment, text read as follows: ``A State may reduce State aid to a
local educational agency that receives a payment under section 7702 or
7703(b) of this title (except the amount calculated in excess of 1.0
under subparagraph (B) of section 7703(a)(2) of this title) or under the
Act of September 30, 1950 (Public Law 874, 81st Congress) as such Act
was in effect on the day preceding October 20, 1994 (other than an
increase in payments described in paragraphs (2)(B), (2)(C), (2)(D), or
(3)(B)(ii) of section 3(d) of such Act of September 30, 1950) for any
fiscal year if the Secretary determines, and certifies under subsection
(c)(3)(A) of this section, that such State has in effect a program of
State aid that equalizes expenditures for free public education among
local educational agencies in such State.''
Subsec. (d). Pub. L. 106-398, Sec. 1 [[div. A], title XVIII,
Sec. 1812(3)], struck out ``or under the Act of September 30, 1950
(Public Law 874, 81st Congress) (as such Act was in effect on the day
preceding October 20, 1994)'' after ``under this subchapter'' wherever
appearing.
1996--Subsec. (b)(2)(A). Pub. L. 104-195 substituted ``more than 25
percent'' for ``more than--
``(i) 25 percent for fiscal year 1995, 1996, or 1997; and
``(ii) 20 percent for fiscal year 1998 or 1999''.
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 7710 of this title.
