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All 67 Stat. 524. In computing for any local educational agency the number of children Comparison of in an increase under paragraph (1), (2), or (3), the estimated number estimated of children described in such paragraph who will be in the member-memberships, ship of the schools of such agency at the close of the regular school year 1953–1954 shall be compared with the estimated number of such children in the average daily membership of the schools of such agency during the regular school year 1951-1952.

“(b) If two or more of the paragraphs of subsection (a) apply to a Eleotion child, the local educational agency shall elect which of such paragraphs shall apply to such child.

"(c) A local educational agency shall not be eligible to have any Noneligibility. amount included in its maximum by reason of paragraph (1), (2), or (3) of subsection (a) unless the increase in children referred to in such paragraph, prior to the application of the limitation in subsection (d), is at least 20 and is equal to at least 5 per centum in the case of paragraph (1) or (2), and 10 per centum in the case of paragraph (3), of the number of all children who were in the average daily membership of the schools of such agency during the regular school year 1951-1952, and unless, in the case of paragraph (3), the construction of additional minimum school facilities for the number of children in such increase will, in the judgment of the Commissioner of Education, impose an undue financial burden on the taxing and borrowing authority of such agency.

"(d) If (1) the estimated number of non-Federally-connected chil. Reduotion of dren who will be in the membership of the schools of a local educa- count. tional agency at the close of the regular school year 1953–1954 is less than (2) 110 per centum of the number of such children who were in the average daily membership of such agency during the regular school year 1951–1952, the total number of children counted for purposes of subsection (a) with respect to such agency shall be reduced by the difference between (1) and (2) hereof. For purposes of this subsection, all children in the membership of a local educational agency shall be counted as non-Federally-connected children except children whose membership in the school years 1951–1952 and 1953– 1954 was compared in computing an increase which meets the requirements of subsection (c).

“(e) Notwithstanding the provisions of subsections (c) and (d) of Walvers, this section, whenever and to the extent that, in his judgment, exceptional circumstances exist which make such action necessary to avoid inequity and avoid defeating the purposes of this title, the Commissioner may do any one or more of he following: (1) He may waive or reduce any percentage requirement or requirements in subsection (c); (2) he may waive the requirement contained in the first sentence of subsection (1) or reduce the percentage specified in clause (2) of such sentence.

“APPLICATIONS “Sec. 306. (a) No payment may be made to any local educational agency under this title except upon application therefor which is submitted through the appropriate State educational agency and is filed with the Commissioner in accordance with regulations prescribed by him.

“(b) The Commissioner shall approve any application if he finds Approval, (1) that the requirements of section 205 (b) (1) have been met and 20 usc 275. that approval of the project would not result in payments in excess of those permitted by sections 304 and 305, (2) after consultation with the State and local educational agencies, that the project is not inconsistent with over-all State plans for the construction of school facilities, and (3) that there are sufficient Federal funds available to pay

All 67 Stat. 525.

the Federal share of the cost of such project and of all other projects for which Federal funds have not already been obligated and applications for which, under section 303, have a higher priority.

"(c) No application under this title shall be disapproved in whole or in part until the Commissioner of Education has afforded the local educational agency reasonable notice and opportunity for hearing.

"PAYMENTS

"SEC. 307. (a) Upon approving the application of any local educational agency under section 306, the Commissioner of Education shall pay to such agency an amount equal to 10 per centum of the Federal share of the cost of the project. After final drawings and specifications have been approved by the Commissioner of Education and the construction contract has been entered into, the Commissioner shall, in accordance with regulations prescribed by him and at such times and in such installments as may be reasonable, pay to such agency the remainder of the Federal share of the cost of the project. Payments under this title shall be made through the disbursing facilities of the Department of the Treasury and prior to audit or settlement by the General Accounting Office.

"(b) Any funds paid to a local educational agency under this title and not expended for the purposes for which paid shall be repaid to the Treasury of the United States.

"ADDITIONAL PAYMENTS

"SEC. 308. Sums appropriated pursuant to this title, other than sums appropriated for administration, shall remain available until expended. Not to exceed 10 per centum of the amount so appropriated for any fiscal year (exclusive of any sums appropriated for administration) may be used by the Commissioner, under regulations prescribed by him, to make grants to local educational agencies where (1) the application of such agencies would be approved under this title but for the agencies' inability, unless aided by such grants, to finance the non-Federal share of the cost of the projects set forth in their applications, or (2) although the applications of such agencies have been approved, the projects covered by such applications could not, without such grants, be completed, because of flood, fire, or similar emergency affecting either the work on the projects or the agencies* ability to finance the non-Federal share of the cost of the projects. Such grants shall be in addition to the payments otherwise provided under this title, shall be made to those local educational agencies whose need for additional aid is the most urgent and acute, and in so far as practicable shall be made in the same manner and upon the same terms and conditions as such other payments.

"WHERE EFFECT OF FEDERAL ACTIVITIES WILL BE TEMPORARY

"SEC. 309. Notwithstanding the preceding provisions of this title, whenever the Commissioner determines that the membership of some or all of the children, who may be included in computing under section 305 the maximum on the total of the payments for any local educational agency, will be of temporary duration only, such membership shall not be included in computing such maximum. Instead, the Commissioner may make available to such agency such temporary school facilities as may be necessary to take care of such membership; or he may, where the local educational agency gives assurance that at least minimum school facilities will be provided for such children, pay (on such terms and conditions as he deems appropriate to carry

All 67 Stat. 526. out the purposes of this title) to such agency for use in constructing school facilities an amount equal to the amount which he estimates would be necessary to make available such temporary facilities. In no case, however, may the amount so paid exceed the cost, in the school district of such agency, of constructing minimum school facilities for such children.

"CHILDREN FOR WHOM LOCAL AGENCIES ARE UNABLE TO PROVIDE

EDUCATION

“Sec. 310. In the case of children who, it is estimated, will reside on Federal property on June 30, 1954–

“(1) if no tax revenues of the State or any political subdivision thereof may be expended for the free public education of such children; or

“(2) if it is the judgment of the Commissioner, after he has consulted with the appropriate State educational agency, that no local educational agency is able to provide suitable free public education

for such children, the Commissioner shall make arrangements for constructing or otherwise providing the minimum school facilities necessary for the education of such children. To the maximum extent practicable school facilities provided under this section shall be comparable to minimum school facilities provided for children in comparable communities in the State. This section shall not apply (A) to children who reside on NonapplloabilFederal property. under the control of the Atomic Energy Commis- 1ty. sion, and (B) to Indian children attending Federally-operated Indian schools. Whenever it will be necessary for the Commissioner to provide school facilities for children residing on Federal property under this section, the membership of such children may not be included in computing under section 305 the maximum on the total of the payments for any local educational agency.

“WITHHOLDING OF PAYMENTS

a

“Sec. 311. Whenever the Commissioner of Education, after reasonable notice and opportunity for hearing to a local educational agency, finds (1) that there is a substantial failure to comply with the drawings and specifications for the project, (2) that any funds paid to a local educational agency under this title "ave been diverted from the purposes for which paid, or (3) that an assurance given in an application is not being or cannot be carried out, the Commissioner may forthwith notify such agency that no further payment will be made under this title with respect to such agency until there is no longer any failure to comply or the diversion or default has been corrected or, it compliance or correction is impossible, until such agency repays or arranges for the repayment of Federal moneys which have been diverted or improperly expended.

"TITLE IV-SCHOOL CONSTRUCTION ASSISTANCE IN

OTHER FEDERALLY-AFFECTED AREAS

“Sec. 401. (a) If the Commissioner determines with respect to any local educational agency that

"(1) such agency is providing or, upon completion of the school facilities for which provision is made herein, will provide free public education for children who reside on Federal property, and whose membership in the schools of such agency has not formed and will not form the basis for payments under title II or 20 USC 271

280,

a

a

All 67 Stat. 527.

III of this Act, and that the total number of such children represents a substantial percentage of the total number of children for whom such agency provides free public education;

"(2) the immunity of such Federal property to taxation by such agency has created a substantial and continuing impairment of its ability to finance needed school facilities;

“(3) such agency is making a reasonable tax effort and is exercising due diligence in availing itself of State and other financial assistance available for the purpose; and

“(4) such agency does not have sufficient funds available to it from other Federal, State, and local sources to provide the minimum school facilities required for free public education in its

school district, he may provide the additional assistance necessary to enable such agency to provide such facilities, upon such terms and in such amounts (subject to the provisions of this section) as the Commissioner may consider to be in the public interest ; but such additional assistance may not exceed the portion of the cost of such facilities which the Commissioner estimates is attributable to children who reside on Federal property, and which has not been, and is not to be, recovered by the local educational agency from other sources, including payments by the United States under any other provisions of this Act or any other

law. Appropriations. “(b) There are hereby authorized to be appropriated for the fiscal

year ending June 30, 1954, and the succeeding fiscal year such sums, not to exceed $20,000,000 in the aggregate, as may be necessary to carry out the provisions of this section. There are also authorized to be appropriated such sums as may be necessary for administration of such provisions. Amounts so appropriated, other than amounts appropriated for administration, shall remain available until expended, except that after June 30, 1955, no agreement may be made to extend assistance under this section.

"(c) No payment may be made to any local educational agency under subsection (a) except upon application therefor which is submitted through the appropriate State educational agency and is filed with the

Commissioner in accordance with regulations prescribed by him, and 20 USC 275. which meets the requirements of section 205 (b) (1). In determining

the order in which such applications shall be approved, the Commissioner shall consider the relative educational and financial needs of the local educational agencies which have submitted approvable applications and the nature and extent of the Federal responsibility. No payment may be made under subsection (a) unless the Commissioner finds, after consultation with the State and local educational agencies, that the project or projects with respect to which it is made are not inconsistent with over-all State plans for the construction of school facilities. All determinations made by the Commissioner under this section shall be made only after consultation with the appropriate

State educational agency and the local educational agency. Payments. "(d) Amounts paid by the Commissioner to local educational agen

cies under subsection (a) may be paid in advance of, or by way of reimbursement for, work performed or purchases made pursuant to the agreement with the Commissioner under this title, and may be paid in such installments as the Commissioner may determine. All such payments shall be made through the disbursing facilities of the Department of the Treasury and prior to audit or settlement by the General Accounting Office. Any funds paid to a local educational agency and not expended or otherwise used for the purposes for which paid shall be repaid to the Treasury of the United States."

All 67 Stat. 528. Sec. 2. (a) Section 205 (b) (1) (F) of such Act is amended by 20 USC 275. striking out "title" and inserting Act" in lieu thereof.

(b) Section 207 (b) of such Act is amended by inserting "or title 20 USC 277. III”after “this title” and inserting “or under section 311" after “this section".

(C) Section 209 (a) of such Act is amended by striking out “title” 20 USC 279. and inserting “Act" in lieu thereof.

(d) Section 209 (b) of such Act is amended by striking out "title" and inserting "Act" in lieu thereof.

(e) Section 209 (c) of such Act is amended by inserting after the first sentence the following new sentence: “There are hereby authorized to be appropriated for the fiscal year ending June 30, 1954, such sums as may be necessary to carry out the provisions of this title other than sections 203 and 204; but such sums (exclusive of any sums appropriated for administration) shall not exceed $55,000,000 in the aggregate. Sums appropriated pursuant to the preceding sentence shall be available for paying unpaid entitlements, but no local educational agency shall be paid from such sums an amount which exceeds 70 per centum of its unpaid entitlement. For the purposes of the preceding sentence, the term “unpaid entitlement' means the amount which the Commissioner would be authorized to pay to a local educational agency from funds appropriated before July 1, 1953, to carry out this title, if such funds were sufficient to make such payment, but which cannot be paid from such funds; except that such amount shall not include any amount to reimburse such agency for any expenditure for construction of school facilities under a contract entered into before September 30, 1950."

(f) Section 209 (e) of such Act is amended by striking vui "title" each time it appears in such section and inserting Act” in lieu thereof, by striking out “June 30, 1953" and inserting "June 30, 1955" in lieu thereof, and by inserting "authorized, prior to the date of enactment of this Act, for the construction of school facilities to be attended by Indian children or appropriations" immediately before clause (1) thereof.

(g) The second sentence of section 210 (1) of such Act is amended 20 USC 280. to read as follows: "Such term includes real property which is owned by the United States and leased therefrom and the improvements thereon, even though the lessee's interest, or any improvement on such property, is subject to taxation by a State or a political subdivision of a State or by the District of Columbia.” The last sentence of such section 210 (1) is amended by striking out "Such" and inserting in lieu thereof "Notwithstanding the foregoing provisions of this paragraph, such”.

(h) Section 210 (5) of such Act is amended to read as follows:

“(5) Average daily attendance at, and the membership and average Determination daily membership of, school shall be determined in accordance with of sohool memState law or, in the absence of State law governing such a determi- bership, oto. nation, in accordance with regulations of the Commissioner; except that, not withstanding any other provision of this title, title III, or title IV, where the local educational agency of the school district in which any child resides makes or contracts to make a tuition payment for the free public education of such child in a school situated in another school district, for purposes of this title the attendance of such child, and for purposes of titles III and IV the membership of such child, shall be held and considered

“(A) if the two local educational agencies concerned so agree, and if such agreement is approved by the Commissioner, as attendance at (or membership of) a school of the local educational agency receiving such tuition payment;

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