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1 5(a)) evaluating the effectiveness of programs and

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projects assisted under this Act in improving educational attainment, and (B) such other reports as may

be reasonably necessary to enable the Commissioner to perform his duties under this Act (including such

reports as he may require to determine the amounts which the local educational agencies of that State are eligible to receive for any fiscal year).

9 (b) The Commissioner shall approve an application 10 which meets the requirements specified in subsection (a), 11 and he shall not finally disapprove an application except after 12 reasonable notice and opportunity for a hearing to the State 13 educational agency.

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PAYMENTS

SEC. 7. (a) (1) The Commissioner shall, subject to the provisions of section 8, from time to time pay to each State

the amount which the local educational agencies of that State are eligible to receive under this Act.

(2) From the funds paid to it pursuant to paragraph

(1) each State educational agency shall distribute to each

local educational agency of the State which has submitted an

application approved pursuant to section 5 (a) the amount

for which such application has been approved, except that

this amount shall not exceed the maximum amount deter

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1 (b) The Commissioner is authorized to pay to each 2 State amounts equal to the amounts expended by it for the 3 proper and efficient performance of its duties under this Act. 4 (including technical assistance for the measurements and 5 evaluations required by section 5), except that the total of 6 such payments in any fiscal year shall not exceed

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(1) 1 per centum of the total grants made to local educational agencies of such State within that fiscal year; or

(2) $150,000, or $25,000 in the case of Puerto Rico, Guam, American Samoa, the Virgin Islands, or

the Trust Territory of the Pacific Islands, whichever is

greater.

(c) No payments shall be made under this Act for any fiscal year to a State which has taken into consideration pay

ments under this Act in determining the eligibility of any

local educational agency in that State for State aid, or the

amount of that aid, with respect to the free public education of children during that year or the preceding fiscal year.

ADJUSTMENTS

SEC. 8. (a) If the suns appropriated for any fiscal year

for making the payments provided in this Act are not suffi

cient to pay in full the total amounts which all local educa

tional agencies are eligible to receive under section 4 for

such year, allocations shall be made to local educational

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1 agencies on the basis of computations, in accordance with 2 that section, as reduced ratably. In case additional funds 3 become available for making payments under this Act for 4 that year, such reduced amounts shall be increased on the same basis that they were reduced.

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(b) In order to permit the most effective use of all appropriations made to carry out this Act, the Commissioner

inay set dates by which State educational agencies must cer

tify to him the amounts for which the applications of educa

10 tional agencies have been or will be approved by the State.

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WITHHOLDINGS

SEC. 9. Whenever the Commissioner, after reasonable 13 notice and opportunity for hearing to any State educa

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agency, finds that there has been a failure to comply

tional agency,

substantially with any assurance set forth in the applica

tion of that State approved under section 6, the Commis

sioner shall notify the agency that further payments will

not be made to the State under this Act (or, in his dis

cretion, that the State educational agency shall not make

further payments under this Act to specified local educa

tional agencies affected by the failure) until he is satisfied

that there is no longer any such failure to comply. Until

he is so satisfied, no further payments shall be made to

the State under this Act, or payments by the State educa

tional agency under this Act shall be limited to local edu

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1 cational agencies not affected by the failure, as the case

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4 SEC. 10. (a) If any State is dissatisfied with the Com5 missioner's final action with respect to the approval of its 6 application submitted under section 6 or with his final 7 action under section 9, such State may, within sixty days 8 after notice of such action, file with the United States court 9 of appeals for the circuit in which such State is located a 10 petition for review of that action. A copy of the petition 11 shall be forthwith transmitted by the clerk of the court 12 to the Commissioner. The Commissioner thereupon shall 13 file in the court the record of the proceedings on which he 14 based his action, as provided in section 2112 of title 28, 15 United States Code.

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(b) The findings of fact by the Commissioner, if sup17 ported by substantial evidence, shall be conclusive; but the 18 court, for good cause shown, may remand the case to the 19 Commissioner to take further evidence, and the Commis20 sioner may thereupon make new or modified findings of fact 21 and may modify his previous action, and shall file in the 22 court the record of the further proceedings. Such new or 23 modified findings of fact shall likewise be conclusive if sup24 ported by substantial evidence.

25 (c) Upon the filing of such petition, the court shall have

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1 jurisdiction to affirm the action of the Commissioner to set it 2 aside, in whole or in part. The judgment of the court shall be 3 subject to review by the Supreme Court of the United States 4 upon certiorari or certification as provided in section 1254 of 5 title 28, United States Code.

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(a) (1) The term "adjusted number of children" for

any local educational agency or county for a fiscal year 10 means a number equal to the sum of (i) the number of chil11 dren who are aged five to seventeen, inclusive, in the school 12 district of the agency or in the county, as the case may be,

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(based on the latest available data from the Department of 14 Commerce) and (ii) the number of children who are counted

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for that fiscal year for purposes of section 103 (a) (2) of title

I of the Elementary and Secondary Education Act for which

such agency is responsible for providing free public education; (2) The term "Federal grant per pupil" for any particu19 lar State means the product obtained by multiplying the

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State and local current expenditure per public school pupil

by the product obtained by multiplying the national re

imbursement rate by the quotient obtained by dividing the national per capita income by the State per capita income; (3) The "national reimbursement rate" shall be 10 per centum for the fiscal year ending June 30, 1972, 20 per

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