1. (a)

   1. (1) The following terms defined in section 8013 of the Act apply to this part:

      Armed forces Average per-pupil expenditure Construction Current expenditures Indian lands Local contribution percentage Low-rent housing Modernization School facilities

   2. (2) The following term defined in § 222.30 applies to this part:

      Free public education

2. (b) The following terms defined in section 9101 of the ESEA (General Provisions) also apply to this part:

   Average daily attendance (ADA) Child County Department Outlying area Parent Secretary State State educational agency (SEA)

3. (c) In addition, the following definitions apply to this part:

   Act means title VIII of the Elementary and Secondary Education Act of 1965 (ESEA), as amended.

   Applicant means any LEA that files an application for financial assistance under section 8002 or section 8003 of the Act and the regulations in this part implementing those provisions. Except as provided in section 8005(d)(4) of the Act, an SEA may be an applicant for assistance under section 8003 only if the SEA directly operates and maintains facilities for providing free public education for the children it claims in its application.

   (Authority: 20 U.S.C. 7705 and 7713(9))

   Application means a complete and signed application in the form approved by the Secretary, filed by an applicant.

   (Authority: 20 U.S.C. 7705)

   Federally connected children means children described in section 8003 or section 8010(c)(2) of the Act.

   (Authority: 20 U.S.C. 7703(a)(1) and 7710(c); 37 U.S.C. 101)

   Federal property. (1) The term means—

   1. (i) Federal property described in section 8013; and
   2. (ii) Ships that are owned by the United States and whose home ports are located upon Federal property described in this definition.

   3. (2) Notwithstanding paragraph (1) of this definition, for the purpose of section 8002 the term does not include—

      1. (i) Any real property that the United States does not own in fee simple, except for Indian lands described in section 8013(7), and transferred property described in section 8002(d); and

      2. (ii) Real property described in section 8002(c) (real property with respect to which payments are being made under section 13 of the Tennessee Valley Authority Act of 1933).

         (Authority: 20 U.S.C. 7702(c) and (d), and 7713(5) and (7))

   Fiscally dependent LEA means an LEA that does not have the final authority to determine the amount of revenue to be raised from local sources for current expenditure purposes.

   (Authority: 20 U.S.C. 7702(b)(2) and 7703(f))

   Fiscally independent LEA means an LEA that has the final authority to determine the amount of revenue to be raised from local sources for current expenditure purposes within the limits established by State law.

   (Authority: 20 U.S.C. 7702(b)(2) and 7703(f))

   Local educational agency (LEA) is defined in section 8013(9). Except for an SEA qualifying under section 8005(d)(4), the term includes an SEA only so long as—

   1. (1) The SEA directly operates and maintains the facilities for providing free public education for the children it claims in its application;
   2. (2) The children claimed by the SEA actually are attending those State-operated facilities; and

   3. (3) The SEA does not, through a tuition arrangement, contract, or by any other means, pay another entity to operate and maintain facilities for those children.

      (Authority: 20 U.S.C. 7705(d)(4) and 7713(9))

      Local real property tax rate for current expenditure purposes. (1) For a fiscally independent LEA, the term means the entire tax levied on real property within the LEA, if all but a de minimis amount of the total proceeds from the tax levy are available to that LEA for current expenditures (as defined in section 8013).

   4. (2) For a fiscally dependent LEA, the term means the following:

      1. (i) The entire tax levied by the general government on real property if all but a de minimis amount of the total proceeds from that tax levy are available to the LEA for current expenditures (as defined in section 8013);
      2. (ii) That portion of a local real property tax rate designated by the general government for current expenditure purposes (as defined in section 8013); or

      3. (iii) If no real property tax levied by the general government meets the criteria in paragraphs (2)(i) or (ii) of this definition, an imputed tax rate that the Secretary determines by—

         1. (A) Dividing the total local real property tax revenue available for current expenditures of the general government by the total revenue from all local sources available for current expenditures of the general government;
         2. (B) Multiplying the figure obtained in paragraph (2)(iii)(A) of this definition by the revenue received by the LEA for current expenditures (as defined in section 8013) from the general government; and
         3. (C) Dividing the figure obtained in paragraph (2)(iii)(B) of this definition by the total current actual assessed value of all real property in the district.

   5. (3) The term does not include any portion of a tax or revenue that is restricted to or dedicated for any specific purpose other than current expenditures (as defined in section 8013).

      (Authority: 20 U.S.C. 7702(b)(2) and 7703(f))

   Membership means the following:

   1. (1)

      1. (i) The definition given to the term by State law; or
      2. (ii) If State law does not define the term, the number of children listed on an LEA's current enrollment records on its survey date(s).
   2. (2) The term includes children for whom the applicant is responsible for providing a free public education, but who are attending schools other than those operated by the applicant under a tuition arrangement described in paragraph (4) of the definition of “free public education” in § 222.30.

   3. (3) The term does not include children who—

      1. (i) Have never attended classes in schools of the LEA or of another educational entity with which the LEA has a tuition arrangement;
      2. (ii) Have permanently left the LEA;
      3. (iii) Otherwise have become ineligible to attend classes there; or
      4. (iv) Attend the schools of the applicant LEA under a tuition arrangement with another LEA that is responsible for providing them a free public education; or

      5. (v) Reside in a State other than the State in which the LEA is located, unless the student is covered by the provisions of—

         1. (A) Section 7010(c) of the Act; or

         2. (B) A formal State tuition or enrollment agreement.

            (Authority: 20 U.S.C. 7703 and 8801(1))

            Parent employed on Federal property. (1) The term means:

         3. (i) An employee of the Federal government who reports to work on, or whose place of work is located on, Federal property, including a Federal employee who reports to an alternative duty station on the survey date, but whose regular duty station is on Federal property.

            Example 1:Lauren, a Virginia resident, is an employee of the U.S. Department of Defense. Her physical duty station is in the Pentagon in Arlington, Virginia, and her children attend LEA A in Virginia. Lauren meets the definition of a “parent employed on Federal property” as she is both a Federal employee and her duty station is on eligible Federal property in the same State as LEA A. Thus LEA A may claim Lauren's children on its Impact Aid application.

            Example 2:Alex, a Virginia resident, is an employee of the U.S. Department of Defense. His physical duty station is in the Pentagon in Arlington, Virginia, and his children attend LEA B in Virginia. On the survey date, Alex was teleworking from his home. For purposes of LEA B's Impact Aid application, Alex meets the definition of a “parent employed on Federal property,” as he is both a Federal employee and his duty station is on eligible Federal property in the same State as LEA B, even though Alex was at an alternative duty station on the survey date because he teleworked. LEA B may claim Alex's children on its Impact Aid application.

            Example 3:Elroy is an employee of the U.S. Department of Education. His normal duty station is on eligible Federal property located in Washington, DC. Elroy's place of residence is in Virginia, and his children attend LEA C in Virginia. Elroy, a Federal employee, does not meet the definition of a “parent employed on Federal property.” The statute requires that the Federal property on which a parent is employed be in the same State as the LEA (ESEA section 7003(a)(1)(G)), and because the Federal property where Elroy works is not in the same State as LEA C, LEA C may not claim Elroy's children.

         4. (ii) A person not employed by the Federal government but who spends more than 50 percent of his or her working time on Federal property (whether as an employee or self-employed) when engaged in farming, grazing, lumbering, mining, or other operations that are authorized by the Federal government, through a lease or other arrangement, to be carried out entirely or partly on Federal property.

            Example 1:Xavier, a dealer at a casino on eligible Indian lands in Utah, reports to work at the casino as his normal duty station and works his eight hour shift at the casino. Xavier's child attends school in LEA D in Utah. For purposes of Impact Aid, Xavier meets the definition of a “parent employed on Federal property” because, although Xavier is not a Federal employee, his duty station is the casino, which is located on an eligible Federal property within the same State as LEA D. LEA D may claim Xavier's children on its Impact Aid application.

            Example 2:Becca works at a privately owned convenience store on leased property on a military installation in Maine. Becca's children attend school at a LEA E, a Maine public school district. On a daily basis, including on the survey date, Becca reports to work at the convenience store where she works her entire shift. Becca meets the definition of a “parent employed on Federal property” for LEA E because, although Becca is not a Federal employee, her duty station is the convenience store, which is located on an eligible Federal property within the same State as LEA E. LEA E may claim Becca's children on its Impact Aid application.

            Example 3:Zoe leases Federal property in Massachusetts to grow lima beans. Zoe's daughter attends LEA F, a Massachusetts public school. On the survey date, Zoe has a valid lease agreement to carry out farming operations that are authorized by the Federal government. Zoe also has a crop of corn on an adjacent field that is not on Federal property. On the survey date, Zoe spent 75 percent of her day harvesting lima beans and 25 percent of her day harvesting corn. Because Zoe spent more than 50 percent of her day working on farming operations that are authorized by the Federal government on leased Federal property in the same State her daughter attends school, Zoe meets the definition of a “parent employed on Federal property,” and LEA F can claim her daughter on its Impact Aid application.

            Example 4:Frank is a private contractor with an office on a military installation and an office on private property, both of which are located in Maryland. His time is split between the two offices. Frank's children attend public school in Maryland in LEA G. On the survey date, Frank reported to his office on the military installation. He spent 4 of his 8 hours at the office on the military installation and 4 hours at the privately owned office facility. Frank's children attend LEA G, a Maryland public school. Frank meets the definition of a “parent employed on Federal property” because he reported to work on the military installation and he spent at least 50 percent of his time on Federal property conducting operations that are authorized by the Federal government on eligible Federal property in the same State as LEA G. LEA G may claim Frank's children on its Impact Aid application.

         5. (2) Except as provided in paragraph (1)(ii) of this definition, the term does not include a person who is not employed by the Federal government and reports to work at a location not on Federal property, even though the individual provides services to operations or activities authorized to be carried out on Federal property.

            Example 1:Maria delivers bread to the convenience store and the commissary, which are both eligible Federal properties located on a military installation in Florida. Maria's son attends school in LEA H, a Florida public school district. On a daily basis, including the survey date, Maria reports to a privately owned warehouse on private property to get her inventory for delivery. Maria is not a Federal employee and her duty station is the warehouse located on private property. She therefore does not meet the definition of a “parent employed on Federal property” for purposes of Impact Aid. LEA H may not claim Maria's children on its Impact Aid application.

            Example 2:Lorenzo is a construction worker who is working on an eligible Federal property in Arizona, but each day he reports to his construction office located on private property to get his daily assignments and meet with the crew before going to the jobsite. Lorenzo's twins attend LEA I, in Arizona. Lorenzo is not a Federal employee and his duty station is the construction office and not the Federal property. Lorenzo therefore does not meet the definition of a “parent employed on Federal property.” LEA I may not claim Lorenzo's children on its Impact Aid application.

            Example 3:Aubrey, a defense contractor, routinely reports to work at her duty station on private property in California. Aubrey's children attend LEA J in California. On the survey date, Aubrey attends an all-day meeting on a military installation. Aubrey is not a Federal employee and she does not normally report to work on eligible Federal property; as a result, Aubrey is not an eligible parent employed on Federal property, and LEA J cannot claim her children on its Impact Aid application.

            (Authority: 20 U.S.C. 7703)

            Real property. (1) The term means—

            1. (i) Land; and
            2. (ii) Improvements (such as buildings and appurtenances to those buildings, railroad lines, utility lines, pipelines, and other permanent fixtures), except as provided in paragraph (2).

            3. (2) The term does not include—

               1. (i) Improvements that are classified as personal property under State law; or

               2. (ii) Equipment and movable machinery, such as motor vehicles, movable house trailers, farm machinery, rolling railroad stock, and floating dry docks, unless that equipment or movable machinery is classified as real property or subject to local real property taxation under State law.

                  (Authority: 20 U.S.C. 7702 and 7713(5))

                  Revenues derived from local sources. (1) The term means—

               3. (i) Tax funds derived from real estate; and
               4. (ii) Other taxes or receipts that are received from the county, and any other local tax or miscellaneous receipts.

               5. (2)

                  1. (i) For the purpose of paragraph (1)(i) of this definition, the term tax funds derived from real estate means—

                     1. (A) Locally received funds that are derived from local taxation of real property;
                     2. (B) Tax funds that are received on account of Wherry-Spence housing projects (12 U.S.C. 1702 et seq.) located on private property; and
                     3. (C) All local real property tax funds that are received from either the county or the State, serving as a collecting agency, and that are returned to the LEA for expenditure by that agency.

                  2. (ii) The term does not include—

                     1. (A) Any payments under this Act or the Johnson-O'Malley Act (25 U.S.C. 452);
                     2. (B) Tax payments that are received on account of Wherry-Spence housing projects located on federally owned property; or

                     3. (C) Local real property tax funds that are received by the State and distributed to LEAs on a per-pupil or formula basis.

                        (Authority: 20 U.S.C. 7713(11))

   State aid means any contribution, no repayment of which is expected, made by a State to or on behalf of an LEA within the State for the support of free public education.

   (Authority: 20 U.S.C. 7703)

   Uniformed services means the United States Army, Navy, Air Force, Marine Corps, Coast Guard, National Oceanic and Atmospheric Administration, and Public Health Service.

   (Approved by the Office of Management and Budget under control number 1810-0036)

   (Authority: 20 U.S.C. 7703(a)(1); 37 U.S.C. 101)

[60 FR 50778, Sept. 29, 1995, as amended at 80 FR 33161, June 11, 2015; 81 FR 64740, Sept. 20, 2016]