20 U.S.C. § 7709 — State consideration of payments in pro-

Page 1607 TITLE 20—EDUCATION § 7709 probably mean sections 204 and 310 of act Sept. 23, 1950, ch. 995, which were classified to sections 274 and 300, re- spectively, of this title prior to the general amendment of that Act by Pub. L. 85–620, Aug. 12, 1958, 72 Stat. 548. The act Sept. 30, 1950, did not contain a section 204 or 310 on Jan. 1, 1958. AMENDMENTS 2015—Subsec. (a). Pub. L. 114–95, § 7008, substituted ‘‘section 7714(e) of this title’’ for ‘‘section 7714(f) of this title’’. Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 2015 AMENDMENT Amendment by Pub. L. 114–95 effective Dec. 10, 2015, and effective with respect to appropriations for use under this subchapter beginning fiscal year 2017, except as otherwise provided in such amendment, see section 5 of Pub. L. 114–95, set out as a note under section 6301 of this title. § 7709. State consideration of payments in pro- viding State aid (a) General prohibition Except as provided in subsection (b), 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 edu- cation; or (B) the amount of such aid; or (2) make such aid available to local edu- cational 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 edu- cational agency that receives a payment under section 7702 or 7703(b) of this title (except the amount calculated in excess of 1.0 under sec- tion 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), that the State has in effect a program of State aid that equalizes expenditures for free public edu- cation 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 rev- enues 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 expendi- tures made by, or per-pupil revenues avail- able 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 sub- section, 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 reve- nues 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 edu- cational 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 Sec- retary determines that the State has substan- tially 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 dem- onstrate that the State’s program met such standard for the fiscal year for which the de- termination 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 pay- ments described in subsection (b)(1) in pro- viding State aid to local educational agen- cies 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 that 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 sub- section (b), 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), the Secretary shall— Page 1608 TITLE 20—EDUCATION § 7709 (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), 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 deter- mination. (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 expendi- tures 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 chil- dren served by such agency, except that a State may consider as local resources funds received under this subchapter only in pro- portion 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). (e) Remedies for State violations (1) In general The Secretary or any aggrieved local edu- cational agency may, not earlier than 150 days after an adverse determination by the Sec- retary against a State for violation of sub- sections (a) or (d)(2) or for failure to carry out an assurance under subsection (b)(3)(B), 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 VII, § 7009, formerly title VIII, § 8009, as added Pub. L. 103–382, title I, § 101, Oct. 20, 1994, 108 Stat. 3764; amended Pub. L. 104–195, § 10, Sept. 16, 1996, 110 Stat. 2384; Pub. L. 106–398, § 1 [[div. A], title XVIII, § 1812], Oct. 30, 2000, 114 Stat. 1654, 1654A–386; Pub. L. 107–110, title VIII, § 804, Jan. 8, 2002, 115 Stat. 1956; re- numbered title VII, § 7009, and amended Pub. L. 114–95, title VII, §§ 7001(c)(2), (d)(1), (7), (8), 7009, Dec. 10, 2015, 129 Stat. 2074, 2087.) Editorial Notes AMENDMENTS 2015—Subsec. (b)(1). Pub. L. 114–95, § 7009(2), made technical amendments to references in original act which appear in text as references to sections 7703(b) and 7703(a)(2)(B) of this title. Pub. L. 114–95, § 7001(d)(8), made technical amendment to references in original act which appear in two places in text as references to section 7703(b)(2) of this title. Pub. L. 114–95, § 7001(d)(7), made technical amendment to reference in original act which appears in text as reference to section 7703(b)(1) of this title. Pub. L. 114–95, § 7001(d)(1), made technical amendment to reference in original act which appears in text as reference to section 7702 of this title. Subsec. (c)(1)(B). Pub. L. 114–95, § 7009(3), substituted ‘‘that the Secretary requires’’ for ‘‘and contain the in- formation the Secretary requires’’. Subsec. (c)(3)(B), (4)(B). Pub. L. 114–95, § 7009(1), made technical amendment to reference in original act which appears in text as reference to section 7711(a) of this title. 2002—Subsec. (b)(1). Pub. L. 107–110 inserted ‘‘and, with respect to a local educational agency that re- ceives 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 agen- cy 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, § 1 [[div. A], title XVIII, § 1812(1)], struck out ‘‘or under the Act of Sep- tember 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, § 1 [[div. A], title XVIII, § 1812(2)], amended heading and text of par. (1) gen- erally. Prior to amendment, text read as follows: ‘‘A State may reduce State aid to a local educational agen- cy 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 Sep- tember 30, 1950) for any fiscal year if the Secretary de- termines, 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, § 1 [[div. A], title XVIII, § 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’’. Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 2015 AMENDMENT Amendment by Pub. L. 114–95 effective Dec. 10, 2015, and effective with respect to appropriations for use under this subchapter beginning fiscal year 2017, except as otherwise provided in such amendment, see section Page 1609 TITLE 20—EDUCATION § 7710 5 of Pub. L. 114–95, set out as a note under section 6301 of this title. 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. § 7710. Federal administration (a) Payments in whole dollar amounts The Secretary shall round any payments under this subchapter to the nearest whole dol- lar amount. (b) Other agencies Each Federal agency administering Federal property on which children reside, and each agency principally responsible for an activity that may occasion assistance under this sub- chapter, shall, to the maximum extent prac- ticable, comply with requests of the Secretary for information the Secretary may require to carry out this subchapter. (c) Special rules (1) Certain children eligible under subpara- graphs (A) and (G)(ii) of section 7703(a)(1) (A) The Secretary shall treat as eligible under subparagraph (A) of section 7703(a)(1) of this title any child who would be eligible under such subparagraph except that the Fed- eral property on which the child resides or on which the child’s parent is employed is not in the same State in which the child attends school, if such child meets the requirements of paragraph (2). (B) The Secretary shall treat as eligible under subparagraph (G) of section 7703(a)(1) of this title any child who would be eligible under such subparagraph except that such child does not meet the requirements of clause (ii) of such subparagraph, if such child meets the requirements of paragraph (2). (2) Requirements A child meets the requirements of this para- graph if— (A) such child resides— (i) in a State adjacent to the State in which the local educational agency serving the school such child attends is located; or (ii) with a parent employed on Federal property in a State adjacent to the State in which such agency is located; (B) the schools of such agency are within a more reasonable commuting distance of such child’s home than the schools of the local educational agency that serves the school attendance area where such child resides; (C) attending the schools of the local edu- cational agency that serves the school at- tendance area where such child resides will impose a substantial hardship on such child; (D) the State in which such child attends school provides funds for the education of such child on the same basis as all other public school children in the State, unless otherwise permitted under section 7709(b) of this title; and (E) such agency received a payment for fis- cal year 1999 under section 7703(b) of this title on behalf of children described in para- graph (1). (d) Timely payments (1) In general Subject to paragraph (2), the Secretary shall pay a local educational agency the full amount that the agency is eligible to receive under this subchapter for a fiscal year not later than September 30 of the second fiscal year following the fiscal year for which such amount has been appropriated if, not later than 1 calendar year following the fiscal year in which such amount has been appropriated, such local educational agency submits to the Secretary all the data and information nec- essary for the Secretary to pay the full amount that the agency is eligible to receive under this subchapter for such fiscal year. (2) Payments with respect of fiscal years in which insufficient funds are appropriated For a fiscal year in which the amount appro- priated under section 7714 of this title is insuf- ficient to pay the full amount a local edu- cational agency is eligible to receive under this subchapter, paragraph (1) shall be applied by substituting ‘‘is available to pay the agen- cy’’ for ‘‘the agency is eligible to receive’’ each place the term appears. (Pub. L. 89–10, title VII, § 7010, formerly title VIII, § 8010, as added Pub. L. 103–382, title I, § 101, Oct. 20, 1994, 108 Stat. 3767; amended Pub. L. 106–398, § 1 [[div. A], title XVIII, § 1813], Oct. 30, 2000, 114 Stat. 1654, 1654A–387; Pub. L. 112–239, div. A, title V, § 563(b)(3), (c)(4), Jan. 2, 2013, 126 Stat. 1747, 1748; renumbered title VII, § 7010, and amended Pub. L. 114–95, title VII, §§ 7001(a)(1), (c)(2), (d)(3), (6), 7010, Dec. 10, 2015, 129 Stat. 2074, 2087.) Editorial Notes AMENDMENTS 2015—Pub. L. 114–95, § 7001(a)(1), repealed Pub. L. 112–239, § 563(c)(4). See 2013 Amendment notes below. Subsec. (c)(1). Pub. L. 114–95, § 7010(1)(A), made tech- nical amendment to reference in original act which ap- pears in heading as reference to section 7703(a)(1). Subsec. (c)(1)(A), (B). Pub. L. 114–95, § 7001(d)(3), made technical amendment to reference in original act which appears in text as reference to section 7703(a)(1) of this title. Subsec. (c)(2)(D). Pub. L. 114–95, § 7010(1)(B), made technical amendment to reference in original act which appears in text as reference to section 7709(b) of this title. Subsec. (c)(2)(E). Pub. L. 114–95, § 7001(d)(6), made technical amendment to reference in original act which appears in text as reference to section 7703(b) of this title. Subsec. (d)(2). Pub. L. 114–95, § 7010(2), made technical amendment to reference in original act which appears in text as reference to section 7714 of this title. 2013—Pub. L. 112–239, § 563(c)(4), which directed repeal of the amendment by Pub. L. 112–239, § 563(b)(3)(B), on the day after the 5-year period that began on Jan. 3, 2013, was itself repealed by Pub. L. 114–95, § 7001(a)(1). Subsec. (c)(1). Pub. L. 112–239, § 563(b)(3)(A), sub- stituted ‘‘paragraph (2)’’ for ‘‘paragraph (3) of this sub- section’’ in subpars. (A) and (B). Subsec. (d). Pub. L. 112–239, § 563(b)(3)(B), added sub- sec. (d).