All 67 Stat. 532.

able with respect to such children for the year for which the computation is being made."

(b) (1) So much of the subsection of such section 3 herein redesignated as subsection (d) as precedes clause (1) thereof is amended to read as follows:

"LOCAL CONTRIBUTION RATE

"(d) The local contribution rate for a local educational agency (other than a local educational agency in Alaska, Hawaii, Puerto Rico, Wake Island, or the Virgin Islands) for any fiscal year shall be computed by the Commissioner of Education, after consultation with the State educational agency and the local educational agency, in the following manner :".

(2) Clause (1) of such subsection is amended by striking out "most nearly comparable" and inserting in lieu thereof "generally comparable".

(c) Such subsection is further amended by adding at the end thereof the following new sentences: "In no event shall the local contribution rate for any local educational agency in any State in the continental United States for any fiscal year be less than 50 per centum of (i) the aggregate current expenditures, during the second fiscal year preceding such fiscal year, made by all local educational agencies in such State (without regard to the source of the funds from which such expenditures were made), divided by (ii) the aggregate number of children in average daily attendance to whom such agencies provided free public education during such second preceding fiscal year. The local contribution rate for any local educational agency in Alaska, Hawaii, Puerto Rico, Wake Island, or the Virgin Islands, shall be determined for any fiscal year by the Commissioner in accordance with policies and principles which will, in his judgment, best effectuate the purposes of this Act and most nearly approximate the policies and principles provided herein for determining local contribution rates in other States."

(d) The subsection of such section herein redesignated as subsection (e) is amended by inserting "(other than subsection (c) (2) thereof)" after "this section". The second parenthetical clause contained in such subsection is amended to read as follows: "(but only to the extent such payments are not deducted under the last sentence of section 2 (a); and, in the case of Federal payments representing an allotment to the local educational agency from United States Forestry Reserve funds, Taylor Grazing Act funds, United States Mineral Lease Royalty funds, Migratory Bird Conservation Act funds, or similar funds, only to the extent that children who reside on or with a parent employed on the property with respect to which such funds are paid are included in determining the amount to which such agency is entitled under this section)".

SEC. 3. Subsection (a) of section 4 of such Act is amended to read 64 Stat. 1104. as follows:

"INCREASES HEREAFTER OCCURRING

"SEC. 4. (a) If the Commissioner determines for any fiscal year ending prior to July 1, 1956

"(1) that, as a direct result of activities of the United States (carried on either directly or through a contractor), an increase in the number of children in average daily attendance at the schools of any local educational agency has occurred in such fiscal year, which increase so resulting from activities of the United States is equal to at least 5 per centum of the number of

20 USC 2 39.

All 67 Stat. 533.

64 Stat. 1101. 20 USC 237.

64 Stat. 1106. 20 USC 239.

all children in average daily attendance at the schools of such agency during the preceding fiscal year; and

"(2) that such activities of the United States have placed on such agency a substantial and continuing financial burden; and "(3) that such agency is making a reasonable tax effort and is exercising due diligence in availing itself of State and other financial assistance but is unable to secure sufficient funds to meet the increased educational costs involved,

then such agency shall be entitled to receive for such fiscal year an amount equal to the product of

"(A) the number of children which the Commissioner determines to be the increase, so resulting from activities of the United States, in such year in average daily attendance; and

"(B) the amount which the Commissioner determines to be the current expenditures per child necessary to provide free public education to such additional children during such year, minus the amount which the Commissioner determines to be available from State, local, and Federal sources for such purpose (not counting as available for such purpose either payments under section 2 of this Act or funds from local sources necessary to provide free public education to other children).

For the next fiscal year (except where the determination under the preceding sentence has been made with respect to the fiscal year ending June 30, 1956) such agency shall be entitled to receive 50 per centum of such product, but not to exceed for such year the amount which the Commissioner determines to be necessary to enable such agency, with the State, local, and other Federal funds available to it for such purpose, to provide a level of education equivalent to that maintained in the school districts in such State which in his judgment are generally comparable to the school district of such agency. The determinations whether an increase has occurred for purposes of clause (1) hereof and whether such increase meets the 5 per centum requirement contained in such clause, for any fiscal year, shall be made on the basis of estimates by the Commissioner made prior to the close of such year, except that an underestimate made by the Commissioner pursuant to the foregoing provisions of this sentence shall not operate to deprive an agency of its entitlement to any payments under this section to which it would be entitled had the estimate been accurate. The determination under clause (B) shall be made by the Commissioner after considering the current expenditures per child in providing free public education in those school districts in the State which, in the judgment of the Commissioner, are generally comparable to the school district of the local educational agency for which the computation is being made."

SEC. 4. Subsection (c) of section 4 of such Act is amended to read as follows:

"COUNTING OF CERTAIN CHILDREN

"(c) In determining under subsection (a) whether there has been an increase in attendance in any fiscal year directly resulting from activities of the United States and the number of children with respect to whom payment is to be made for any fiscal year, the Commissioner shall not count children whose attendance is attributable to activities of the United States carried on in connection with real property which has been excluded from the definition of Federal property by the last 64 Stat. 1108. sentence of paragraph (1) of section 9, but shall count as an increase directly resulting from activities of the United States an increase in the number of children who reside on Federal property or reside with a parent employed on Federal property."

20 USC 244.

All 67 Stat. 534.

SEC. 5. Subsection (d) of section 4 of such Act is amended to read 64 Stat. 1106. as follows:

"ADJUSTMENT FOR CERTAIN DECREASES IN FEDERAL ACTIVITIES

"(d) Whenever the Commissioner determines that—

"(1) a local educational agency has made preparations to provide during a fiscal year free public education for a certain number of children to whom subsection (a) applies;

"(2) such preparations were in his judgment reasonable in the light of the information available to such agency at the time such preparations were made; and

"(3) such number has been substantially reduced by reason of a decrease in or cessation of Federal activities or by reason of a failure of any of such activities to occur,

the amount to which such agency is otherwise entitled under this section for such year shall be increased to the amount to which, in the judgment of the Commissioner, such agency would have been entitled but for such decrease in or cessation of Federal activities or the failure of such activities to occur, minus any reduction in current expenditures for such year which the Commissioner determines that such agency has effected, or reasonably should have effected, by reason of such decrease in or cessation of Federal activities or the failure of such activities to occur."

20 USC 239.

Ante, p. 532.

SEC. 6. Subsection (b) of section 5 of such Act is amended to read 64 Stat. 1107. as follows:

20 USC 240.

"PAYMENT

"(b) The Commissioner shall, subject to the provisions of subsection (c), from time to time pay to each local educational agency, in Infra. advance or otherwise, the amount which he estimates such agency is entitled to receive under this Act. Such estimates shall take into account the extent (if any) to which any previous estimate of the amount to be paid such agency under this Act (whether or not in the same fiscal year) was greater or less than the amount which should have been paid to it. 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."

SEC. 7. Subsection (c) of section 5 of such Act is amended to read 20 USC 240. as follows:

66 'ADJUSTMENTS WHERE NECESSITATED BY APPROPRIATIONS

"(c) If the funds appropriated for a fiscal year for making the payments provided in this Act are not sufficient to pay in full the total amounts which the Commissioner estimates all local educational agencies will be entitled to receive under this Act for such year, the Commissioner shall, subject to any limitation contained in the Act appropriating such funds, allocate such funds, other than so much thereof

as he estimates to be required for section 6, among sections 2, 3, and Post, p. 535; 4 (a) in the proportion that the amount he estimates to be required ante, p. 530, under each such section bears to the total estimated to be required 532. under all such sections. The amount thus allocated to any such section shall be available for payment of a percentage of the amount to which each local educational agency is entitled under such section (including, in the case of section 3, any increases under subsection (c) (2) thereof), such percentage to be equal to the percentage which the amount thus allocated to such section is of the amount to which all such agencies are entitled under such section. In case the amount

54-998 O 71-18

All 67 Stat. 535.

64 Stat. 1107. 20 USC 241.

Educational standard.

Employees' ohildren in adjacent

areas.

Puerto Rico,
Wake Island,

so allocated to a section for a fiscal year exceeds the total to which all local educational agencies are entitled under such section for such year or in case additional funds become available for carrying out such sections, the excess, or such additional funds, as the case may be, shall be allocated by the Commissioner, among the sections for which the previous allocations are inadequate, on the same basis as is provided above for the initial allocation."

SEC. 8. (a) Section 6 of such Act is amended by inserting "(a)” after "SEC. 6.".

(b) Such section is further amended by striking out the second sentence and inserting the following in lieu thereof: "To the maximum extent practicable, the local educational agency, or the head of the Federal department or agency, with which any arrangement is made under this section shall take such action as may be necessary to ensure that the education provided pursuant to such arrangement is comparable to free public education provided for children in comparable communities in the State, or, in the case of education provided under this section outside the continental United States, Alaska, and Hawaii, comparable to free public education provided for children in the District of Columbia. For the purpose of providing such comparable education, personnel may be employed without regard to the civilservice or classification laws."

(c) Such section is further amended by adding at the end thereof the following new subsections:

"(b) In any case in which the Commissioner makes such arrange ments for the provision of free public education in facilities situated on Federal property, he may also make arrangements for providing free public education in such facilities for children residing in any area adjacent to such property with a parent who, during some portion of the fiscal year in which such education is provided, was employed on such property, but only if the Commissioner determines after consultation with the appropriate State educational agency (1) that the provision of such education is appropriate to carry out the purposes of this Act, (2) that no local educational agency is able to provide suitable free public education for such children, and (3) in any case where in the judgment of the Commissioner the need for the provision of such education will not be temporary in duration, that the local educational agency of the school district in which such children reside, or the State educational agency, or both, will make reasonable tuition payments to the Commissioner for the education of such children. Such payments may be made either directly or through deductions from amounts to which the local educational agency is entitled under this Act, or both, as may be agreed upon between such agency and the Commissioner. Any amounts paid to the Commissioner by a State or local educational agency pursuant to this section shall be covered into the Treasury as miscellaneous receipts.

"(c) In any case in which the Commissioner makes arrangements under this section for the provision of free public education in faciliVirgin Islands. ties situated on Federal property in Puerto Rico, Wake Island, or the Virgin Islands, he may also make arrangements for providing free public education in such facilities for children residing with a parent. employed by the United States, but only if the Commissioner determines after consultation with the appropriate State educational agency (1) that the provision of such education is appropriate to carry out the purposes of this Act, and (2) that no local educational agency is able to provide suitable free public education for such children.

Arrangements.

"(d) The Commissioner may make an arrangement under this section only with a local educational agency or with the head of a Federal department or agency administering Federal property on which chil

All 67 Stat. 536.

dren reside who are to be provided education pursuant to such arrangement. Arrangements may be made under this section only for the provision of education in facilities of a local educational agency or in facilities situated on Federal property.

"(e) To the maximum extent practicable, the Commissioner shall Limit on limit the total payments made pursuant to any such arrangement for payments. educating children within the continental United States, Alaska, or Hawaii, to an amount per pupil which will not exceed the per pupil cost of free public education provided for children in comparable communities in the State. The Commissioner shall limit the total payments made pursuant to any such arrangement for educating children outside the continental United States, Alaska, or Hawaii, to an amount per pupil which will not exceed the amount he determines to be necessary to provide education comparable to the free public education provided for children in the District of Columbia.

"(f) In the administration of this section, the Commissioner shall Control, renot exercise any direction, supervision, or control over the personnel, striction. curriculum, or program of instruction of any school or school system.'

SEC. 9. (a) Effective as of July 1, 1953, subsection (a) of section 8 64 Stat. 1108. of such Act is amended by adding the following new sentence at the end 20 USC 243. thereof: "The Commissioner is authorized to delegate to any officer or Delegation of employee of the Office of Education any of his functions under this Act funotions. except the making of regulations."

(b) Effective as of July 1, 1953, subsection (d) of section 8 of such Act is amended to read as follows:

"(d) No appropriation to any department or agency of the United Availability of States, other than an appropriation to carry out this Act, shall be avail- appropriations. able during the period beginning July 1, 1953, and ending June 30, 1956, for the employment of teaching personnel for the provision of free public education for children in any State or for payments to any local educational agency (directly or through the State educational agency) for free public education for children, except that nothing in the foregoing provisions of this subsection shall affect the availability of appropriations for the maintenance and operation of school facilities (1) on Federal property under the control of the Atomic Energy Commission or (2) by the Bureau of Indian Affairs."

SEC. 10. (a) The second sentence of section 9 (1) of such Act is 64 Stat. 1108. amended to read as follows: "Such term includes real property which 20 USC 244. is owned by the United States and leased there from 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 9 (1) is amended by striking out "Such" and inserting in lieu thereof "Notwithstanding the foregoing provisions of this paragraph, such".

(b) Section 9 (8) of such Act is amended by inserting "Wake Wake Island. Island," after "Puerto Rico,".

SEC. 11. Such Act is amended by adding at the end thereof the following new section:

"ELECTION TO RECEIVE CERTAIN PAYMENTS WITH RESPECT TO THE EDUCATION OF INDIAN CHILDREN

"SEC. 10. (a) The Governor of any State may elect to have the provisions of this section apply with respect to such State for the fiscal year ending June 30, 1955, or the succeeding fiscal year. Notice of such an election shall bied with the Secretary of the Interior and with the Commissioner of Education (1) before January 1, 1954, in the case of an election for the fiscal year ending June 30, 1955, and