 
 CHAPTER 70--STRENGTHENING AND IMPROVEMENT OF ELEMENTARY AND SECONDARY 
                                 SCHOOLS
 
                       SUBCHAPTER VIII--IMPACT AID
 
Sec. 7705. Application for payments under sections 7702 and 7703 
        of this title
        

(a) In general

    A local educational agency desiring to receive a payment under 
section 7702 or 7703 of this title shall--
        (1) submit an application for such payment to the Secretary; and
        (2) provide a copy of such application to the State educational 
    agency.

(b) Contents

    Each such application shall be submitted in such form and manner, 
and shall contain such information, as the Secretary may require, 
including--
        (1) information to determine the eligibility of the local 
    educational agency for a payment and the amount of such payment; and
        (2) where applicable, an assurance that such agency is in 
    compliance with section 7704 of this title (relating to children 
    residing on Indian lands).

(c) Deadline for submission

    The Secretary shall establish deadlines for the submission of 
applications under this section.

(d) Approval

                           (1) In general

        The Secretary shall approve an application submitted under this 
    section that--
            (A) except as provided in paragraph (2), is filed by the 
        deadline established under subsection (c) of this section; and
            (B) otherwise meets the requirements of this subchapter.

                      (2) Reduction in payment

        The Secretary shall approve an application filed not more than 
    60 days after a deadline established under subsection (c) of this 
    section, or not more than 60 days after the date on which the 
    Secretary sends written notice to the local educational agency 
    pursuant to paragraph (3)(A), as the case may be, that otherwise 
    meets the requirements of this subchapter, except that, 
    notwithstanding section 7703(e) of this title, the Secretary shall 
    reduce the payment based on such late application by 10 percent of 
    the amount that would otherwise be paid.

                        (3) Late applications

        (A) Notice

            The Secretary shall, as soon as practicable after the 
        deadline established under subsection (c) of this section, 
        provide to each local educational agency that applied for a 
        payment under section 7702 or 7703 of this title for the prior 
        fiscal year, and with respect to which the Secretary has not 
        received an application for a payment under either such section 
        (as the case may be) for the fiscal year in question, written 
        notice of the failure to comply with the deadline and 
        instruction to ensure that the application is filed not later 
        than 60 days after the date on which the Secretary sends the 
        notice.

        (B) Acceptance and approval of late applications

            The Secretary shall not accept or approve any application of 
        a local educational agency that is filed more than 60 days after 
        the date on which the Secretary sends written notice to the 
        local educational agency pursuant to subparagraph (A).

                   (4) State application authority

        Notwithstanding any other provision of law, a State educational 
    agency that had been accepted as an applicant for funds under 
    section 3 of the Act of September 30, 1950 (Public Law 874, 81st 
    Congress) (as such section was in effect on the day preceding 
    October 20, 1994) in fiscal year 1994 shall be permitted to continue 
    as an applicant under the same conditions by which such agency made 
    application during such fiscal year only if such State educational 
    agency distributes all funds received for the students for which 
    application is being made by such State educational agency to the 
    local educational agencies providing educational services to such 
    students.

(Pub. L. 89-10, title VIII, Sec. 8005, as added Pub. L. 103-382, title 
I, Sec. 101, Oct. 20, 1994, 108 Stat. 3761; amended Pub. L. 106-398, 
Sec. 1 [[div. A], title XVIII, Sec. 1809], Oct. 30, 2000, 114 Stat. 
1654, 1654A-382.)

                       References in Text

    Section 3 of the Act of September 30, 1950 (Public Law 874, 81st 
Congress) (as such section was in effect on the day preceding October 
20, 1994), referred to in subsec. (d)(4), means section 3 of act Sept. 
30, 1950, ch. 1124, which was classified to section 238 of this title 
prior to repeal by Pub. L. 103-382, title III, Sec. 331(b), Oct. 20, 
1994, 108 Stat. 3965.


                               Amendments

    2000--Subsec. (d)(2). Pub. L. 106-398, Sec. 1 [[div. A], title 
XVIII, Sec. 1809(1)], inserted ``, or not more than 60 days after the 
date on which the Secretary sends written notice to the local 
educational agency pursuant to paragraph (3)(A), as the case may be,'' 
after ``subsection (c) of this section''.
    Subsec. (d)(3). Pub. L. 106-398, Sec. 1 [[div. A], title XVIII, 
Sec. 1809(2)], amended heading and text generally. Prior to amendment, 
text read as follows: ``The Secretary shall not accept or approve any 
application that is filed more than 60 days after a deadline established 
under subsection (c) of this section.''

                  Section Referred to in Other Sections

    This section is referred to in section 7702 of this title.
