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80 STAT. 1194

Ante, p. 1192.

79 Stat. 28. 20 USC 241c.

79 Stat. 1161.

Post, p. 1198.

(e) Section 203 (a) of such Act is further amended by inserting after paragraph (6) as added by this Act an additional paragraph as follows:

"(7) In the case of a State agency which is directly responsible for providing free public education for children in institutions for neglected or delinquent children, the maximum grant which that agency shall be eligible to receive under this title for any fiscal year shall be an amount equal to the Federal percentage of the average per pupil expenditure in that State multiplied by the number of such children in average daily attendance, as determined by the Commissioner, at schools for such children operated or supported by that State agency, in the most recent fiscal year for which satisfactory data are available. Such State agency shall use payments under this title only for programs and projects (including the acquisition of equipment and where necessary the construction of school facilities) which are designed to meet the special educational needs of such children."

ELIGIBILITY FOR GRANTS; CLARIFYING DEFINITION OF "AVERAGE PER PUPIL
EXPENDITURE" IN A STATE

SEC. 105. (a) (1) Section 203 (b) (1) of such Act is amended by striking out all that follows "shall be" and inserting in lieu thereof "at least ten."

(2) Section 203 (b) (2) of such Act is amended by striking out "shall be one hundred or more" and inserting in lieu thereof "shall be at least ten".

(b) (1) Paragraph (2) of section 203 (a) of such Act is amended by inserting "or, if greater, in the United States (which for purposes of this and the last sentence of this paragraph means the fifty States and the District of Columbia)," after "average per pupil expenditure in that State".

(2) Paragraph (5) of section 203 (a) of such Act is amended by inserting "or, if greater, in the United States (which for purposes of this sentence means the fifty States and the District of Columbia," after "in that State".

(3) The amendments made by this subsection shall be effective with respect to fiscal years beginning after June 30, 1967.

(c) The last sentence of section 203 (a) (2) of such Act is amended to read as follows: "For purposes of this subsection, the 'average per pupil expenditure' in a State, or in the United States, shall be the aggregate current expenditures, during the second fiscal year preceding the fiscal year for which the computation is made, of all local educational agencies as defined in section 303 (6)(A) in the State, or in the United States, as the case may be, plus any direct current expenditures by the State for operation of such agencies (without regard to the sources of funds from which either of such expenditures are made), divided by the aggregate number of children in average daily attendance to whom such agencies provided free public education during such preceding year."

RAISING THE LOW-INCOME FACTOR AFTER JUNE 30, 1967

SEC. 106. Section 203 (c) of such Act of September 30, 1950, is amended to read as follows:

"(c) For the purposes of this section, the 'Federal percentage' shall be 50 per centum and the 'low-income factor' shall be $2,000 for the fiscal year ending June 30, 1966, and the fiscal year ending June 30, 1967. For the fiscal year ending June 30, 1968, they shall be 50 per centum and $3,000, respectively."

80 STAT. 1195

USING MOST RECENT AID-FOR-DEPENDENT-CHILDREN DATA AVAILABLE

AFTER JUNE 30, 1966

SEC. 107. Effective with respect to fiscal years beginning after June 30, 1966, the third sentence (as amended by section 104 of this Act) of

section 203 (d) of such Act of September 30, 1950, is further amended 79 Stat. 28. to read as follows: "The Secretary of Health, Education, and Welfare 20 USC 241c. shall determine the number of children of such ages from families receiving an annual income in excess of the low-income factor from payments under the program of aid to families with dependent children under a State plan approved under title IV of the Social Security

Act, and the number of children of such ages living in institutions 49 Stat. 627. for neglected or delinquent children, or being supported in foster 42 USC 601. homes with public funds, on the basis of the latest calendar or fiscal

year data, whichever is later.”

REPEALING PROVISION FOR SPECIAL INCENTIVE GRANTS

SEC. 108. (a) Title II of such Act of September 30, 1950, is amended by striking out section 204.

(b) Such title II is further amended by—

(1) striking out "basic grant", "BASIC GRANTS" and "basic grants" each time they occur and inserting in lieu thereof "grant", GRANTS" or "grants", as the case may be;

(2) striking out "or a special incentive grant" in the portion of section 205 (a) which precedes clause (1); and

20 USC 241d.

20 USC 24le.

(3) striking out in section 207 (a) (2) the portion which follows 20 USC 241g. the comma and inserting in lieu thereof "except that this amount shall not exceed the maximum amount determined for that agency pursuant to section 203."

TREATMENT OF INCOME OF EMPLOYEES RECEIVING AID FOR DEPENDENT
CHILDREN

SEC. 109. The following new section is added immediately after section 212 of such Act:

"TREATMENT OF EARNINGS FOR PURPOSES OF AID TO FAMILIES WITH DEPENDENT CHILDREN

"SEC. 213. (a) Notwithstanding the provisions of title IV of the Social Security Act, a State plan approved under section 402 of such Act shall provide that for a period of not less than twelve months, and may provide that for a period of not more than twenty-four months, the first $85 earned by any person in any month for services rendered to any program assisted under this title of this Act shall not be regarded (A) in determining the need of such person under such approved State plan or (B) in determining the need of any other individual under such approved State plan.

"(b) Notwithstanding the provisions of subsection (a) of this section, no funds to which a State is otherwise entitled under title IV of the Social Security Act for any period before the fourth month after the adjournment of the State's first regular legislative session which adjourns more than sixty days after enactment of the Elementary and Secondary Education Amendments of 1966, shall be withheld by reason of any action taken pursuant to a State statute which prevents such State from complying with the requirements of subsection (a) of this section."

80 STAT. 1196

79 Stat. 30. 20 USC 24le.

20 USC 241c.

79 Stat. 57. 20 USC 883.

PROVIDING THAT A PROGRAM OR A PROJECT MUST BE AT LEAST A
CERTAIN MINIMUM SIZE TO BE APPROVED

SEC. 110. Section 205 (a) (1) (B) of such Act of September 30, 1950, is amended by striking out the comma after "needs" and inserting in lieu thereof the following: "and to this end involve an expenditure of not less than $2,500, except that the State educational agency may with respect to any applicant reduce the $2,500 requirement if it determines that it would be impossible, for reasons such as distance or difficulty of travel, for the applicant to join effectively with other local educational agencies for the purpose of meeting the requirement;".

USES OF GRANTED FUNDS AND COORDINATION WITH OTHER PROGRAMS

SEC. 111. (a) Section 205 (a) (1) of such Act of September 30, 1950, is amended by striking out "(including the acquisition of equipment and where necessary the construction of school facilities)" and inserting in lieu thereof the following: "(including the acquisition of equipment, and, where necessary, the construction of school facilities and plans made or to be made for such programs, projects, and facilities)". (b) Section 205 (a)(1) of such Act is further amended by inserting before the semicolon at the end thereof the following: ": Provided, That the amount used for plans for any fiscal year shall not exceed 1 per centum of the maximum amount determined for that agency for that year pursuant to section 203 or $2,000, whichever is greater".

(c) Section 205 (a) of such Act of September 30, 1950, is amended by renumbering paragraphs (5), (6), (7), and (8) as (6), (7), (8), and (9), respectively, and by inserting after paragraph (4) the following new paragraph:

"(5) in the case of an application for payments for planning, (A) that the planning was or will be directly related to programs or projects to be carried out under this title and has resulted, or is reasonably likely to result, in a program or project which will be carried out under this title, and (B) that planning funds are needed because of the innovative nature of the program or project or because the local educational agency lacks the resources necessary to plan adequately for programs and projects to be carried out under this title;".

(d) Such redesignated paragraph (8) of such section is amended to read as follows:

"(8) in the case of a project for the construction of school facilities, that, in developing plans for such facilities due consideration has been given to compliance with such standards as the Secretary may prescribe or approve in order to insure that facilities constructed with the use of Federal funds under this title shall be, to the extent appropriate in view of the uses to be made of the facilities, accessible to and usable by handicapped persons;".

(e) Section 205 (a) of such Act is further amended by striking out the period at the end of the last paragraph, and adding at the end thereof the following new paragraph:

"(10) in the case of a project for the construction of school facilities, that, in developing plans for such facilities, due consideration has been given to excellence of architecture and design, and to the inclusion of works of art (not representing more than 1 per centum of the cost of the project)."

(f) Title VII of the Elementary and Secondary Education Act of 1965 (as redesignated by section 161 of this Act) is amended by inserting at the end of section 703 a new subsection as follows:

"(c) In administering the provisions of this Act and any Act amended by this Act, the Commissioner shall consult with other Fed

eral departments and agencies administering programs which may be effectively coordinated with programs carried out pursuant to such Acts, and to the extent practicable for the purposes of such Acts shall (1) coordinate such programs on the Federal level with the programs being administered by such other departments and agencies, and (2) require that effective procedures be adopted by State and local authorities to coordinate the development and operation of programs and projects carried out under such Acts with other public ana private programs having the same or similar purposes, including community action programs under title II of the Economic Opportunity Act of 1964."

COMPUTING AMOUNT OF PAYMENTS FOR STATE ADMINISTRATIVE EXPENSES

SEC. 112. Clause (1) of section 207 (b) of such Act of September 30, 1950, is amended to read as follows:

80 STAT. 1197

78 Stat. 516. 42 USC 2781.

79 Stat. 1162.

"(1) 1 per centum of the total maximum grants for State and 20 USC 241g. local educational agencies of the State as determined for that year pursuant to sections 203 and 208, or".

PROVISIONS TO ENCOURAGE LOCAL EFFORT

SEC. 113. (a) Section 207 (c) (2) of such Act of September 30, 1950, is amended by striking out "for the fiscal year ending June 30, 1964" and inserting in lieu thereof "for the second preceding fiscal year".

(b) Section 203 (a)(3) of such Act is amended by striking out "1966" and inserting in lieu thereof "1967" and by striking out "30 per centum" both times it appears and inserting in lieu thereof "50 per centum".

CONTINUING AND REVISING PROVISION FOR ADJUSTMENTS WHERE
NECESSITATED BY APPROPRIATIONS

79 Stat. 32.

20 USC 241c.

SEC. 114. (a) Section 208 of such Act of September 30, 1950, is 20 USC 241h. amended by striking out "for the fiscal year ending June 30, 1966," and inserting in lieu thereof "for any fiscal year".

(b) Such section 208 is further amended by adding at the end thereof the following: "In order to permit reductions made pursuant to this section for any fiscal year to be offset at least in part, the Commissioner may set dates by which (1) State educational agencies must certify to him the amounts for which the applications of educational agencies have been or will be approved by the State, and (2) State

educational agencies referred to in section 203 (a) (6) must file applica- Ante, p. 1192. tions. The excess of (1) the total of the amounts of the maximum grants computed for all educational agencies of any State under section 203, as ratably reduced under this section, over (2) the total of the amounts for which applications of agencies of that State referred to in clauses (1) and (2) of the preceding sentence are approved shall be available, in accordance with regulations, first to educational agencies in that State and then to educational agencies in other States to offset proportionately ratable reductions made under this section."

REVISION IN NATIONAL ADVISORY COUNCIL REPORTING

SEC. 115. Section 212 (c) of such Act of September 30, 1950, is 20 USC 2411. amended to read as follows:

"(c) The Council shall make an annual report of its findings and recommendations (including recommendations for changes in the provisions of this title) to the President and the Congress not later than January 31 of each calendar year beginning after the enactment of this

80 STAT. 1198

20 USC 241a2411; Ante, p. 1195.

64 Stat. 1108;

79 Stat. 35.

20 USC 244.

20 USC 236241-1.

79 Stat. 28. 20 USC 241c, 241e.

79 Stat. 1161.

title. The President is requested to transmit to the Congress such comments and recommendations as he may have with respect to such report."

SHORT TITLE FOR TITLE II OF PUBLIC LAW 874, EIGHTY-FIRST CONGRESS

SEC. 116. Title II of such Act of September 30, 1950 (as amended by this Act), is further amended by inserting at the end thereof an additional section as follows:

"SHORT TITLE

"SEC. 214. This title may be cited as "Title I of the Elementary and Secondary Education Act of 1965'."

DEFINITIONS

Broadening definition of "local educational agency"

SEC. 117. (a) (1) Section 303 (6) of such Act of September 30, 1950, is amended to read as follows:

"(6) (A) For purposes of title I, the term 'local educational agency' means a board of education or other legally constituted local school authority having administrative control and direction of free public education in a county, township, independent, or other school district located within a State. Such term includes any State agency which directly operates and maintains facilities for providing free public education.

"(B) For purposes of title II, the term 'local educational agency' means a public board of education or other public authority legally constituted within a State for either administrative control or direction of, or to perform a service function for, public elementary or secondary schools in a city, county, township, school district, or other political subdivision of a State, or such combination of school districts or counties as are recognized in a State as an administrative agency for its public elementary or secondary schools. Such term includes any other public institution or agency having administrative control and direction of a public elementary or secondary school, and it also includes (except for purposes of sections 203 (a) (2), 203 (b), and 205 (a)(1)) any State agency which is directly responsible for providing free public education for handicapped children (including mentally retarded, hard of hearing, deaf, speech impaired, visually handicapped, seriously emotionally disturbed, crippled, or other health impaired children who by reason thereof require special education) or for children in institutions for neglected or delinquent children."

(2) The first sentence of section 203 (a) (5) of such Act is amended by striking out ", on a non-school-district basis,".

(3) Section 203 (a) (3) of such Act is amended by inserting "(A)" after "(3)" and by inserting at the end thereof a new subparagraph as follows:

"(B) In the case of local educational agencies which serve in whole or in part the same geographical area, and in the case of a local educational agency which provides free public education for a substantial number of children who reside in the school district of another local educational agency, the State educational agency may allocate the amount of the maximum grants for those agencies among them in such manner as it determines will best carry out the purposes of this title."

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