 
 CHAPTER 70--STRENGTHENING AND IMPROVEMENT OF ELEMENTARY AND SECONDARY 
                                 SCHOOLS
 
                       SUBCHAPTER VIII--IMPACT AID
 
Sec. 7713. Definitions

    For purposes of this subchapter:

                          (1) Armed Forces

        The term ``Armed Forces'' means the Army, Navy, Air Force, and 
    Marine Corps.

                  (2) Average per-pupil expenditure

        The term ``average per-pupil expenditure'' means--
            (A) the aggregate current expenditures of all local 
        educational agencies in the State; divided by
            (B) the total number of children in average daily attendance 
        for whom such agencies provided free public education.

                          (3) Construction

        The term ``construction'' means--
            (A) the preparation of drawings and specifications for 
        school facilities;
            (B) erecting, building, acquiring, altering, remodeling, 
        repairing, or extending school facilities;
            (C) inspecting and supervising the construction of school 
        facilities; and
            (D) debt service for such activities.

                      (4) Current expenditures

        The term ``current expenditures'' means expenditures for free 
    public education, including expenditures for administration, 
    instruction, attendance and health services, pupil transportation 
    services, operation and maintenance of plant, fixed charges, and net 
    expenditures to cover deficits for food services and student body 
    activities, but does not include expenditures for community 
    services, capital outlay, and debt service, or any expenditures made 
    from funds awarded under part A of subchapter I of this chapter and 
    subchapter VI of this chapter. The determination of whether an 
    expenditure for the replacement of equipment is considered a current 
    expenditure or a capital outlay shall be determined in accordance 
    with generally accepted accounting principles as determined by the 
    State.

                        (5) Federal property

        (A) In general

            Except as provided in subparagraphs (B) through (F), the 
        term ``Federal property'' means real property that is not 
        subject to taxation by any State or any political subdivision of 
        a State due to Federal agreement, law, or policy, and that is--
                (i) owned by the United States or leased by the United 
            States from another entity;
                (ii)(I) held in trust by the United States for 
            individual Indians or Indian tribes;
                (II) held by individual Indians or Indian tribes subject 
            to restrictions on alienation imposed by the United States;
                (III) conveyed at any time under the Alaska Native 
            Claims Settlement Act [43 U.S.C. 1601 et seq.] to a Native 
            individual, Native group, or village or regional 
            corporation;
                (IV) public land owned by the United States that is 
            designated for the sole use and benefit of individual 
            Indians or Indian tribes; or
                (V) used for low-rent housing, as described in paragraph 
            (10), that is located on land described in subclause (I), 
            (II), (III), or (IV) of this clause or on land that met one 
            of those descriptions immediately before such property's use 
            for such housing;
                (iii)(I) part of a low-rent housing project assisted 
            under the United States Housing Act of 1937 [42 U.S.C. 1437 
            et seq.];
                (II) used to provide housing for homeless children at 
            closed military installations pursuant to section 11411 of 
            title 42; or
                (III) used for affordable housing assisted under the 
            Native American Housing Assistance and Self-Determination 
            Act of 1996 [25 U.S.C. 4101 et seq.]; or
                (iv) owned by a foreign government or by an 
            international organization.

        (B) Schools providing flight training to members of Air Force

            The term ``Federal property'' includes, so long as not 
        subject to taxation by any State or any political subdivision of 
        a State, and whether or not that tax exemption is due to Federal 
        agreement, law, or policy, any school providing flight training 
        to members of the Air Force under contract with the Air Force at 
        an airport owned by a State or political subdivision of a State.

        (C) Non-Federal easements, leases, licenses, permits, 
                improvements, and certain other real property

            The term ``Federal property'' includes, whether or not 
        subject to taxation by a State or a political subdivision of a 
        State--
                (i) any non-Federal easement, lease, license, permit, or 
            other such interest in Federal property as otherwise 
            described in this paragraph, but not including any non-
            Federal fee-simple interest;
                (ii) any improvement on Federal property as otherwise 
            described in this paragraph; and
                (iii) real property that, immediately before its sale or 
            transfer to a non-Federal party, was owned by the United 
            States and otherwise qualified as Federal property described 
            in this paragraph, but only for one year beyond the end of 
            the fiscal year of such sale or transfer.

        (D) Certain Postal Service property and pipelines and utility 
                lines

            Notwithstanding any other provision of this paragraph, the 
        term ``Federal property'' does not include--
                (i) any real property under the jurisdiction of the 
            United States Postal Service that is used primarily for the 
            provision of postal services; or
                (ii) pipelines and utility lines.

        (E) Property with respect to which State or local tax revenues 
                may not be expended, allocated, or available for free 
                public education

            Notwithstanding any other provision of this paragraph, 
        ``Federal property'' does not include any property on which 
        children reside that is otherwise described in this paragraph 
        if--
                (i) no tax revenues of the State or of any political 
            subdivision of the State may be expended for the free public 
            education of children who reside on that Federal property; 
            or
                (ii) no tax revenues of the State are allocated or 
            available for the free public education of such children.

        (F) Property located in the State of Oklahoma owned by Indian 
                housing authority for low-income housing

            The term ``Federal property'' includes any real property 
        located in the State of Oklahoma that--
                (i) is owned by an Indian housing authority and used for 
            low-income housing (including housing assisted under or 
            authorized by the Native American Housing Assistance and 
            Self-Determination Act of 1996 [25 U.S.C. 4101 et seq.]); 
            and
                (ii) at any time--
                    (I) was designated by treaty as tribal land; or
                    (II) satisfied the definition of Federal property 
                under section 403(1)(A) of the Act of September 30, 1950 
                (Public Law 874, 81st Congress) (as such Act was in 
                effect on the day preceding October 20, 1994).

                      (6) Free public education

        The term ``free public education'' means education that is 
    provided--
            (A) at public expense, under public supervision and 
        direction, and without tuition charge; and
            (B) as elementary or secondary education, as determined 
        under State law, except that, notwithstanding State law, such 
        term--
                (i) includes preschool education; and
                (ii) does not include any education provided beyond 
            grade 12.

                          (7) Indian lands

        The term ``Indian lands'' means any Federal property described 
    in paragraph (5)(A)(ii) or (5)(F).

                  (8) Local contribution percentage

        (A) In general

            The term ``local contribution percentage'' means the 
        percentage of current expenditures in the State derived from 
        local and intermediate sources, as reported to and verified by 
        the National Center for Education Statistics.

        (B) Hawaii and District of Columbia

            Notwithstanding subparagraph (A), the local contribution 
        percentage for Hawaii and for the District of Columbia shall be 
        the average local contribution percentage for the 50 States and 
        the District of Columbia.

                    (9) Local educational agency

        (A) In general

            Except as provided in subparagraph (B), the term ``local 
        educational agency''--
                (i) means a board of education or other legally 
            constituted local school authority having administrative 
            control and direction of free public education in a county, 
            township, independent school district, or other school 
            district; and
                (ii) includes any State agency that directly operates 
            and maintains facilities for providing free public 
            education.

        (B) Exception

            The term ``local educational agency'' does not include any 
        agency or school authority that the Secretary determines on a 
        case-by-case basis--
                (i) was constituted or reconstituted primarily for the 
            purpose of receiving assistance under this subchapter or the 
            Act of September 30, 1950 (Public Law 874, 81st Congress) 
            (as such Act was in effect on the day preceding October 20, 
            1994) or increasing the amount of such assistance; or
                (ii) is not constituted or reconstituted for legitimate 
            educational purposes.

                        (10) Low-rent housing

        The term ``low-rent housing'' means housing located on property 
    that is described in paragraph (5)(A)(iii).

                         (11) Modernization

        The term ``modernization'' means repair, renovation, alteration, 
    or construction, including--
            (A) the concurrent installation of equipment; and
            (B) the complete or partial replacement of an existing 
        school facility, but only if such replacement is less expensive 
        and more cost-effective than repair, renovation, or alteration 
        of the school facility.

               (12) Revenue derived from local sources

        The term ``revenue derived from local sources'' means--
            (A) revenue produced within the boundaries of a local 
        educational agency and available to such agency for such 
        agency's use; or
            (B) funds collected by another governmental unit, but 
        distributed back to a local educational agency in the same 
        proportion as such funds were collected as a local revenue 
        source.

                       (13) School facilities

        The term ``school facilities'' includes--
            (A) classrooms and related facilities; and
            (B) equipment, machinery, and utilities necessary or 
        appropriate for school purposes.

(Pub. L. 89-10, title VIII, Sec. 8013, as added Pub. L. 103-382, title 
I, Sec. 101, Oct. 20, 1994, 108 Stat. 3769; amended Pub. L. 106-398, 
Sec. 1 [[div. A], title XVIII, Sec. 1816], Oct. 30, 2000, 114 Stat. 
1654, 1654A-387; Pub. L. 106-400, Sec. 2, Oct. 30, 2000, 114 Stat. 
1675.)

                       References in Text

    The Alaska Native Claims Settlement Act, referred to in par. 
(5)(A)(ii)(III), is Pub. L. 92-203, Dec. 18, 1971, 85 Stat. 688, as 
amended, which is classified generally to chapter 33 (Sec. 1601 et seq.) 
of Title 43, Public Lands. For complete classification of this Act to 
the Code, see Short Title note set out under section 1601 of Title 43 
and Tables.
    The United States Housing Act of 1937, referred to in par. 
(5)(A)(iii)(I), is act Sept. 1, 1937, ch. 896, as revised generally by 
Pub. L. 93-383, title II, Sec. 201(a), Aug. 22, 1974, 88 Stat. 653, 
which is classified generally to chapter 8 (Sec. 1437 et seq.) of Title 
42, The Public Health and Welfare. For complete classification of this 
Act to the Code, see Short Title note set out under section 1437 of 
Title 42 and Tables.
    The Native American Housing Assistance and Self-Determination Act of 
1996, referred to in par. (5)(A)(iii)(III), (F)(i), is Pub. L. 104-330, 
Oct. 26, 1996, 110 Stat. 4016, as amended, which is classified 
principally to chapter 43 (Sec. 4101 et seq.) of Title 25, Indians. For 
complete classification of this Act to the Code, see Short Title note 
set out under section 4101 of Title 25 and Tables.
    Act of September 30, 1950 (Public Law 874, 81st Congress) (as such 
Act was in effect on the day preceding October 20, 1994), referred to in 
pars. (5)(F)(ii)(II) and (9)(B)(i), is act Sept. 30, 1950, ch. 1124, 64 
Stat. 1100, as amended, which was classified generally to chapter 13 
(Sec. 236 et seq.) of this title prior to repeal by Pub. L. 103-382, 
title III, Sec. 331(b), Oct. 20, 1994, 108 Stat. 3965. Section 403 of 
the Act was classified to section 244 of this title. For complete 
classification of this Act to the Code, see Tables.


                               Amendments

    2000--Par. (5)(A)(iii)(II). Pub. L. 106-400 made technical amendment 
to reference in original act which appears in text as reference to 
section 11411 of title 42.
    Par. (5)(A)(iii)(III). Pub. L. 106-398, Sec. 1 [[div. A], title 
XVIII, Sec. 1816(1)(A)], added subcl. (III).
    Par. (5)(F)(i). Pub. L. 106-398, Sec. 1 [[div. A], title XVIII, 
Sec. 1816(1)(B)], substituted ``or authorized by the Native American 
Housing Assistance and Self-Determination Act of 1996'' for ``the mutual 
help ownership opportunity program under section 202 of the United 
States Housing Act of 1937''.
    Par. (8)(B). Pub. L. 106-398, Sec. 1 [[div. A], title XVIII, 
Sec. 1816(2)], substituted ``the 50 States and the District of 
Columbia'' for ``all States''.
    Pars. (11) to (13). Pub. L. 106-398, Sec. 1 [[div. A], title XVIII, 
Sec. 1816(3), (4)], added par. (11) and redesignated former pars. (11) 
and (12) as (12) and (13), respectively.

                  Section Referred to in Other Sections

    This section is referred to in section 7703a of this title; title 10 
section 2008.
