PUBLIC LAW 106-398 —APPENDIX 114 STAT. 1654A-381 (I) by inserting after "paragraph (1)(C)" the following: "or subparagraph (D) or (E) of paragraph (2), as the case may be,"; and (II) by striking "paragraph (2)(B)" and inserting "subparagraph (B) or (C) of paragraph (3), as the case may be,"; (3) in subsection (c)(1), by striking "paragraph (2) and subsection (f)" and inserting "subsections (b)(1)(D), (b)(2), and paragraph (2)"; (4) by striking subsection (f); and (5) in subsection (h), by striking "section 6" and all that follows through "1994)" and inserting "section 386 of the National Defense Authorization Act for Fiscal Year 1993". SEC. 1807. BASIC SUPPORT PAYMENTS FOR LOCAL EDUCATIONAL AGENCIES AFFECTED BY REMOVAL OF FEDERAL PROP- ERTY. Section 8003(b) of the Elementary and Secondary Education Act of 1965 (20 U.S.C. 7703(b)), as amended by this Act, is further amended by adding at the end the following: " (5) LOCAL EDUCATIONAL AGENCIES AFFECTED BY REMOVAL OF FEDERAL PROPERTY.— "(A.) IN GENERAL. —In computing the amount of a basic support payment under this subsection for a fiscal year for a local educational agency described in subparagraph (B), the Secretary shall meet the additional requirements described in subparagraph (C). "(B) LOCAL EDUCATIONAL AGENCY DESCRIBED. — A local educational agency described in this subparagraph is a local educational agency with respect to which Federal property (i) located within the boundaries of the agency, and (ii) on which one or more children reside who are receiving a free public education at a school of the agency, is transferred by the Federal Government to another entity in any fiscal year beginning on or after the date of the enactment of the Impact Aid Reauthorization Act of 2000 so that the property is subject to taxation by the State or a political subdivision of the State. "(C) ADDITIONAL REQUIREMENTS.—The additional requirements described in this subparagraph are the following: "(i) For each fiscal year beginning after the date on which the Federal property is transferred, a child described in subparagraph (B) who continues to reside on such property and who continues to receive a free public education at a school of the agency shall be deemed to be a child who resides on Federal property for purposes of computing under the applicable subparagraph of subsection (a)(1) the amount that the agency is eligible to receive under this subsection. "(ii)(I) For the third fiscal year beginning after the date on which the Federal property is transferred, and for each fiscal year thereafter, the Secretary shall, after computing the amount that the agency is otherwise eligible to receive under this subsection for the fiscal year involved, deduct from such amount an amount equal to the revenue received by the agency
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