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fense; which was referred to the Committee on the Judiciary.

SUSPENSION OF DEPORTATION OF ALIENS

The PRESIDENT pro tempore laid before the Senate four communications from the Commissioner of Immigration and Naturalization Service, Department of Justice, transmitting, pursuant to law, reports stating all the facts and pertinent provisions of law in the cases of certain aliens whose deportation has been suspended, together with the statement of the reason for such suspension; which, with the accompanying papers, was referred to the Committee on the Judiciary.

PETITIONS

The PRESIDENT pro tempore laid before the Senate a petition of H. T. Oliver, New York, N.Y., praying an investigation of a treaty with Mexico referred to as the General Claims Convention, signed September 8, 1923; which was referred to the Committee on Foreign Relations.

The PRESIDENT pro tempore laid before the Senate a resolution of the Builders of America Civics Club, Mount Carmel School, Bristol, R.I., favoring the action of the Senate on juvenile delinquency; which was ordered to lie on the table.

REPORTS OF COMMITTEES

Mr. BYRD of Virginia, from the Committee on Finance, to whom was referred the bill (H.R. 6785) to amend section 4071 of the Internal Revenue Code of 1954 so as to fix a tax of 1 cent per pound of certain laminated tires produced from used tires, reported it with an amendment and submitted a report (No. 1076) thereon.

Mr. BYRD of Virginia, from the Committee on Finance, to whom was referred the bill (H.R. 529) to discharge more effectively obligations of the United States under certain conventions and protocols relating to the institution of controls over the manufacture of narcotic drugs, and for other purposes, reported it with amendments and submitted a report (No. 1077) thereon.

Mr. CHAVEZ, from the Committee on Public Works, to whom was referred the bill (H.R. 8171) amending the act of February 20, 1931, as amended, with respect to a rail transit crossing across the bay of San Francisco, reported it without amendment and submitted a report (No. 1078) thereon.

Mr. CHAVEZ, from the Committee on Public Works, to whom was referred the joint resolution (S.J. Res. 97) to authorize preliminary study and review in connection with proposed additional building for the Library of Congress, reported it with an amendment and submitted a report (No. 1079) thereon.

Mr. CHAVEZ, from the Committee on Public Works, to whom was referred the bill (S. 1511) to provide for the annual audit of bridge commissions and authorities created by act of Congress, for the filling of vacancies in the membership thereof, and for other purposes, reported it with amendments and submitted a report (No. 1080) thereon.

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S. 2979. A bill to authorize the Administrator of General Services to make grants in cash and land to the Convalescent Hospital of Washington, District of Columbia, Incorporated, for the purpose of enabling the Corporation to establish a convalescent and chronic disease hospital in the District of Columbia; to the Committee on the District of Columbia.

By Mr. MAGNUSON:

S. 2980. A bill to provide that the Secretary of the Interior shall investigate and report to the Congress on the advisability of establishing a national park or other unit of the national park system in the Central and North Cascades region of the State of Washington, and for other purposes; to the Committee on Interior and Insular Affairs.

By Mr. WILLIAMS of New Jersey: S. 2981. A bill for the relief of Miss Hanako. Konishi; to the Committee on the Judiciary.

By Mr. O'MAHONEY: S. 2982. A bill for the relief of Eduardo Giron Rodriguez; to the Committee on the Judiciary.

S. 2983. A bill to amend the Mineral Leasing Act of February 25, 1920; to the Committee on Interior and Insular Affairs.

By Mr. JOHNSTON of South
Carolina (by request):

S. 2984. A bill authorizing the Interstate Commerce Commission to place certain positions in grades 16, 17, and 18 of the General Schedule of the Classification Act of 1949, as amended; to the Committee on Post Office and Civil Service.

By Mr. MORTON:

S. 2985. A bill to change the name of the locks and dam No. 41 on the Ohio River at Louisville, Ky.; to the Committee on Public Works.

By Mr. O'MAHONEY:

S. 2986. A bill to clarify the authority of the Commissioner of Patents to compile, publish, and disseminate certain information relating to patents; to the Committee on the Judiciary.

By Mr. BIBLE (by request):

S. 2987. A bill to amend the District of Columbia Unemployment Compensation Act, as amended; and

S. 2988. A bill to amend the District of Columbia Unemployment Compensation Act, as amended; to the Committee on the District of Columbia.

By Mr. HUMPHREY:

S. 2989. A bill to create and prescribe the functions of a National Peace Agency; to the Committee on Foreign Relations.

ADDITIONAL COAUTHORS OF SENATE BILL 2755 On motion by Mr. DOUGLAS, and by unanimous consent,

Ordered, That the name of Mr. CANNON be added as a coauthor of the bill (S. 2755) to assist in the promotion of economic stabilization by requiring the disclosure of finance charges in connection with extensions of credit.

ADDITIONAL COAUTHOR OF SENATE CONCURRENT RESOLUTION 84

On motion by Mr. JAVITTS, and by unanimous consent,

Ordered, That the name of Mr. KUCHEL be added as a coauthor of the concurrent resolution (S. Con. Res. 84) expressing the indignation of Congress at the recent desecrations of houses of worship and other sacred sites.

AUTHORIZATION TO PRINT CERTAIN REPORTS AS SENATE DOCUMENTS

Mr. KERR submitted the following resolution (S. Res. 269); which was referred to the Committee on Rules and Administration:

Resolved, That the report of the Advisory Council on Public Assistance be printed as a Senate document, with an illustration.

Mr. KERR submitted the following resolution (S. Res. 270); which was referred to the Committee on Rules and Administration:

Resolved, That the report of the Advisory Council on Child Welfare Services be printed as a Senate document, with an illustration.

MEMORIAL ADDRESSES ON LATE SENATOR LANGER FROM NORTH DAKOTA Mr. MANSFIELD submitted the following resolution (S. Res. 268); which was considered and unanimously agreed to:

Resolved, That the legislative business of the Senate be now suspended in order that memorial addresses may be delivered on the life, character, and public service of Hon. WILLIAM LANGER, late a Senator from the State of North Dakota.

Resolved, That the Secretary communicate these resolutions to the House of Representatives and transmit a copy thereof to the family of the deceased.

Memorial addresses were thereupon delivered in tribute to the late Senator by Mr. YoUNG of North Dakota, Mr. BRUNSDALE, Mr. JAVITS, Mr. MANSFIELD, Mr. JACKSON, Mr. MAGNUSON, Mr. SALTONSTALL, Mr. CARLSON, Mr. HRUSKA, Mr. KFFAUVER, Mr. LONG of Louisiana, Mr. HILL, Mr. CASE of South Dakota, Mr. GRUENING, Mr. KEATING. Mr. YARBOROUGH, Mr. YOUNG of Ohio, Mr. DOUGLAS, Mr. COOPER, Mr. MUNDT, Mr. RANDOLPH, Mr. FONG, Mr. DIRKSEN, Mr. MORSE, Mr.

JOHNSON of Texas, Mr. THURMOND, Mr. GORE, Mr. KUCHEL, Mr. AIKEN, Mr. BIBLE, Mr. TALMADGE, and Mr. JOHNSTON of South Carolina.

MESSAGE FROM THE HOUSE

A message from the House of Representatives by Mr. Bartlett, one of its clerks:

Mr. President: The chairman of the Committee on Merchant Marine and Fisheries of the House of Representatives has appointed as members on the part of the House of Representatives the following:

To the Board of Visitors to the
Coast Guard Academy:

Mr. MILLER, of California; Mr. LENNON, of North Carolina; and Mr. MAILLIARD, of California.

To the Board of Visitors to the
United States Merchant Marine
Academy in 1960:

Mr. ZELENKO, of New York; Mr. DownING, of Virginia; and Mr. RAY, of New York.

The Speaker of the House having signed four enrolled bills, viz, S. 540, S. 981, S. 1862, and S. 2231, I am directed to bring the same to the Senate for the signature of its President.

ENROLLED BILLS SIGNED

The Secretary reported that he had examined and found truly enrolled the following bills:

S. 540. An act for the relief of Maybell King;

S. 981. An act for the relief of T. W. Holt & Co.;

S. 1862. An act for the relief of Marve M. Duggins; and

S. 2231. An act to amend the joint resolution providing for membership and participation by the United States in the Inter-American Children's Institute, formerly known as the American International Institute for the Protection of Childhood, as amended.

The PRESIDENT pro tempore thereupon signed the same.

FEDERAL FINANCIAL ASSISTANCE FOR SCHOOL

CONSTRUCTION

The Senate resumed the consideration of its unfinished business, viz, the bill (S. 8) to authorize an emergency 2-year program of Federal financial assistance in school construction to the States.

The question being on agreeing to the amendment yesterday proposed by Mr. MONRONEY (for himself and others) on page 9, line 10, striking out certain words and inserting in lieu thereof other words, Pending debate,

On motion by Mr. CLARK (for himself, Mr. MONRONEY, Mr. KENNEDY, Mr. SYMINGTON, Mr. HUMPHREY, Mr. CHURCH, Mr. YARBOROUGH, Mr. DODD, Mr. BYRD of West Virginia, Mr. HARTKE, Mr. LONG of Hawaii, Mr. KERR, Mr. FULBRIGHT, Mr. GORE, Mr. DOUGLAS, Mr. GRUENING, Mr. BARTLETT, Mr. MORSE, Mr. HENNINGS, Mr. MANSFIELD, Mr. RANDOLPH, Mr. YOUNG of Ohio, Mr. WILLIAMS of New Jersey, Mr. JACKSON, Mr. KEFAUVER, Mr. MCCARTHY, Mr. CARROLL, Mr. MCNAMARA, Mr. MAGNUSON, Mr. HART, Mr. MUSKIE, Mr. Moss, and Mr. McGEE to amend the amend49100-S J-86-27

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The question being taken on agreeing to the amendment proposed by Mr. CLARK (for himself and others), viz, in lieu of the following language proposed to be inserted by the amendment proposed by Mr. MONRONEY (for himself and others) as a substitute for the committee language on lines 10 to 14, on page 9:

"SEC. 4. There is hereby authorized to be appropriated for the fiscal year beginning July 1, 1960, and for the next three succeeding years, an amount equal to $20 times a number equal to the school-age population of the United States as of such year for the purpose of making payments to State educational agencies under this Act."

insert the following:

Sec. 4. There is hereby authorized to be appropriated for the fiscal year beginning July 1, 1960, and for the next fiscal year, an amount equal to $20 times a number equal to the school-age population of the United States, as defined in section 5(b) (4), for the purpose of making payments to State educational agencies to provide assistance in the construction of urgently needed public elementary and secondary school facilities in local communities and for teachers' salaries under this Act. It was determined in Yeas. 54 the affirmative___.

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Long, La.
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Young, N. Dak.

So the amendment was agreed to. On motion by Mr. CLARK to reconsider the vote agreeing to the amendment, On motion by Mr. MONRONEY. The motion to reconsider was laid on the table.

The question recurring on agreeing to the amendment proposed by Mr. MONRONEY (for himself and others), as amended.

On motion by Mr. MONRONEY, and by unanimous consent,

The order for the yeas and nays was rescinded; and

The amendment, as amended, was agreed to.

The reported amendment was further amended on the motion of Mr. MONRONEY.

On motion by Mr. MORSE (for himself, Mr. BARTLETT, Mr. CHAVEZ, Mr. CLARK, Mr. BUSH, Mr. DODD, Mr. MANSFIELD, Mr. MURRAY, Mr. MARTIN, and Mr. DOUGLAS) to further amend the reported amendment, by striking out certain words and inserting other words at various places therein,

On motion by Mr. MORSE, The yeas and nays, being desired by one-fifth of the Senators present, were ordered on the question of agreeing to the amendment.

Pending debate,

Mr. MORSE, by unanimous consent, modified his proposed amendment. After debate,

The question being taken on agreeing to the amendment, as modified, proposed by Mr. MORSE (for himself and others) to the reported amendment, viz,

On page 8, line 24, strike out the period and insert in lieu thereof a comma and the following: and to authorize a twoyear program of loans for the construction of private nonprofit elementary and secondary school facilities.;

On page 17, line 3, after "Act", insert a comma and or a private school which receives a loan under the provisions of section 11,;

On page 17, between lines 15 and 16, insert the following:

Loans to private nonprofit elementary and secondary schools

Sec. 11. There is authorized to be appropriated for the fiscal year beginning July 1, 1960, and the succeeding fiscal year, such sum, not to exceed $75,000,000 in any fiscal year, as is necessary for making loans to state certified and approved private nonprofit elementary and secondary schools in the States for constructing school facilities. Such loans are hereby autohrized to be made by the Commissioner, and the total amount of such loans which shall be allocated to qualifying schools in each State for each such year shall be in an amount which bears the same ratio to the total amount appropriated in such year pursuant to the authorization in this section as the private nonprofit elementary and secondary school population in such state bears to the total such population for all the States. Any such loan—

(1) shall be made upon application containing such information as may be deemed necessary by the Commissioner;

(2) shall be subject to such conditions as may be necessary to protect the financial interest of the United States;

(3) may be in an amount not exceeding the total construction cost of the facilities for which made, as determined by the Commissioner, and shall bear interest at a rate determined by the Commissioner, which shall be not more than the higher of (A) 234 per centum per annum, or (B) the total of one-quarter of 1 per centum per annum added to the average annual interest rate on all interestbearing obligations of the United States then forming a part of the public debt as computed at the end of the fiscal year next preceding the date on which the contract for the loan is made and adjusted to the nearest oneeighth of 1 per centum; and

(4) shall mature and be repayable on such date as may be agreed to by the Commissioner and the borrower, but such date shall not be more than forty years after the date on which such loan was made.

If any part of the total funds allocated to schools within a State under the provisions of this section remain unused at the end of the first fiscal year in which funds are made available under this secticn, it shall be reallocated at the discretion of the Commissioner for loans under the provisions of this section to schools in other States. Such reallocated sums shall be over and above the sum authorized to be appropriated in the succeeding fiscal year under the provisions of this section.;

On page 17, line 17, strike out "SEC. 11." and insert in lieu thereof Sec. 12.; On page 18, line 24, before the semicolon insert a comma and or for the purposes of section 11 which is provided by

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So the amendment, as modified, was not agreed to.

On motion by Mr. MANSFIELD to reconsider the vote disagreeing to the amendment,

On motion by Mr. HILL,

The motion to reconsider was laid on the table.

On motion by Mr. DIRKSEN (for himself, Mr. MORTON, Mr. YOUNG of North Dakota, Mr. SALTONSTALL, Mr. SCOTT, and Mr. ALLOTT) to further amend the reported amendment, by striking out all after the enacting clause, as amended, and inserting in lieu thereof other words, Pending debate,

On motion by Mr. DIRKSEN, The yeas and nays, being desired by one-fifth of the Senators present, were ordered on the question of agreeing to the amendment.

After debate,

The question being taken on agreeing to the amendment proposed by Mr. DIRKSEN (for himself and others), viz, in lieu of the part proposed to be inserted by the reported amendment, as amended, insert the following:

That this Act may be cited as the "School Construction Assistance Act of 1960".

Assurance Against Federal Interference in Schools

Sec. 2. In the administration of this Act, no department, agency, officer, or employee of the United States shall

exercise any direction, supervision, or control over the personnel, curriculum, or program of instruction of any school or school system.

Authorization of Appropriations

Sec. 3. For the purpose of assisting school districts in financing the construction of urgently needed school facilities which they cannot, through exercise of a reasonable tax effort, finance from their own resources, there are hereby authorized to be appropriated for each fiscal year, beginning with the fiscal year ending June 30, 1961, such sums as may be necessary to make the payments provided in this Act.

Allocations

Sec. 4. (a) (1) For each fiscal year during the five-year period beginning July 1, 1960, and ending June 30, 1965, such amounts, not to exceed $600,000,000, as may be specified for such year by appropriation or other law shall be allocated by the Commissioner among the States on the basis of the income per child of school age, the number of public school children, and the effort for school purposes, of the respective States. Subject to the provisions of section 5, such allocations shall be made as follows: The Commissioner shall allocate to each State for each fiscal year an amount which bears the same ratio to the total to be allocated among all States as the product of

(A) the number of public school children in the State (determined as provided in section 5 (c) (1) for such fiscal year), and

(B) the State's allocation ratio (as determined under subsection (b)), bears to the sum of the corresponding products for all the States.

(2) A State's allocation pursuant to paragraph (1) shall be available during the fiscal year for which it is made and during the following fiscal year for Federal commitments pursuant to section 7 with respect to obligations, to finance the construction of school facilities projects in such State, totaling the amount of such allocation: Provided, That a State may at any time before July 1, 1961, and before requesting any Federal commitment under this Act, file with the Commissioner its election to have the availability of (a) its allocation for the fiscal year ending June 30, 1961, or (b) all its allocations pursuant to paragraph (1), postponed for one fiscal year, and thereupon its allocation for the fiscal year ending June 30, 1961, or if the State has so elected each of the allocations of such State, shall be deemed for purposes of this Act to first become available during the fiscal year following that for which such allocation was originally made. Such a commitment with respect to any obligations shall commit the Commissioner to pay one-half the principal and interest annually becoming due on such obligations. Such obligations may be for the purpose of financing all or a portion of the construction of school facilities projects. The latest maturity date of obligations (in any issue) with respect to which a Federal commitment is made

under this Act may not be less than twenty years and not more than thirty years from the earliest date of any such obligations and the first payment of principal thereon shall be due not later than the end of the third year following such earliest date.

(b) For purposes of this Act

(1) The "allocation ratio" for any State shall be 1.00 less the product of (A) 0.50 and (B) the quotient obtained by dividing the income per child of school age for the State by the income per child of school age for the United States, except that (A) the allocation ratio shall in no case be less than 0.25 or more than 0.75, and (B) the allocation ratio for Puerto Rico, Guam, and the Virgin Islands shall be 0.75.

(2) (A) The allocation ratios shall be promulgated by the Commissioner as soon as possible after enactment of this Act and again between July 1 and September 30 of the year 1962, on the basis of the average of the incomes per child of school age for the States and for the United States for the three most recent consecutive years for which satisfactory data are available from the Department of Commerce. The first such promulgation shall be conclusive for purposes of this Act for each of the fiscal years in the period beginning July 1, 1960, and ending June 30, 1962, and the second for each of the fiscal years in the period beginning July 1, 1963, and ending June 30, 1965.

(B) Promulgations made before satisfactory data are available from the Department of Commerce for a full year on the per capita income of Alaska shall prescribe an allocation ratio for Alaska of 0.75 and, for purposes of such promulgations, Alaska shall not be included as part of the United States. Promulgations made thereafter but before per capita income data for Alaska for a full three-year period are available from the Department of Commerce shall be based on satisfactory data available therefrom for Alaska for such one full year or, when such data are available for a two-year period, for such two years.

(3) The term "child of school age" means a member of the population between the ages of five and seventeen, both inclusive.

(4) The term "United States" means the fifty States.

(5) The term "income per child of school age" for any State or for the United States means the total personal income for the State and the United States, respectively, divided by the number of children of school age (in the State and United States, respectively). Mainenance of State and local support for school financing

Sec. 5. (a) The allocation of any State under section 4 for any year shall be reduced by the percentage (if any) by which its State school effort index for such year is less than the national school effort index for such year. The total of such reductions shall be reallocated among the remaining States by proportionately increasing their allocations under section 4 of such year.

(b) For purposes of subsection (a) — (1) The "State school effort index” for any State for a fiscal year is the quotient obtained by dividing (A) the State's school expenditures per public school child by (B) the income per child of school age for the State; except that the State school effort index shall be deemed to be equal to the national school effort index in the case of (i) Puerto Rico, the Virgin Islands, and Guam, (ii) Alaska, but only for years for which it is, under subsection (c) (4), not included in the "United States", and (iii) any State for which the school expenditures per public school child are not less than the school expenditures per public school child for the United States;

(2) The "national school effort index" for any fiscal year is the quotient obtained by dividing (A) the school expenditures per public school for the United States by (B) the income per child of school age for the United States.

(c) (1) The school expenditures per public school child for any State for purposes of determining its State school effort index for any fiscal year means the quotient obtained by dividing (A) the total expenditures by the State and subdivisions thereof for elementary or secondary education made from funds derived from State or local sources in the State, as determined by the Commissioner on the basis of data for the most recent school year for which satisfactory data for the several States are available to him, by (B) the number of children in average daily attendance in public elementary or secondary schools in such State, as determined by the Commissioner for such most recent school year.

(2) The school expenditures per public school child for the United States for purposes of determining the national school effort index for any fiscal year means the quotient obtained by dividing (A) the total expenditures by the States and subdivisions thereof for elementary or secondary education made from funds derived from State or local sources in the United States, as determined by the Commissioner for the same school year as is used under paragraph (1), by (B) the number of children in average daily attendance for such year in public elementary or secondary schools in the United States, determined as provided in paragraph (1).

(3) The income per child of school age for the States and for the United States shall, for purposes of subsection (b), be determined by the Commissioner on the basis of the incomes per child of school age for the most recent year for which satisfactory data are available from the Department of Commerce.

(4) The term "United States" shall not include Alaska for purposes of determinations made under this section before satisfactory data are available from the Department of Commerce for a full year on the per capita income of Alaska.

State plans

Sec. 6. Federal commitments may be made under this Act with respect to obligations to finance the construction of

school facilities in any State only if such State has submitted, and had approved under this section, a State plan. The Commissioner shall approve a State plan for purposes of this Act if such plan—

(a) provides that the State educational agency shall be the sole agency for administering the plan;

(b) provides that a local educational agency will be eligible for a Federal commitment under this Act with respect to any obligations only if—

(1) such obligations are for financing, in whole or in part, the construction of school facilities needed to relieve or prevent overcrowding, double shifts, or unhealthful or hazardous conditions,

(2) such agency undertakes to exert the reasonable tax effort, determined for it under the plan, in financing its school construction needs,

(3) such agency will be unable, after exertion of such reasonable tax effort, and full utilization of other resources (whether from Federal, State, or local sources) available to it for financing its school construction needs and not taken into account for purposes of section 8, to pay the principal and interest annually becoming due on such obligations and other outstanding obligations of such agency for financing school construction;

(c) sets forth standards and procedures for determining the tax effort which each local educational agency applying for a Federal commitment under this Act will be required, in order to be eligible, to exert in financing its school construction needs, which standards and procedures will assure that the tax effort so determined will be a reasonable one in the light of the resources actually or potentially subject to taxation by such agency, the relative local and State shares in financing school construction, and the tax effort exerted and the methods of financing used by other local educational agencies in the State. Such standards and criteria shall also take into account the tax effort which local educational agencies should reasonably be expected to exert to meet other public elementary or secondary educational expenses, including the payment of adequate teachers' salaries, and may, if the State so elects, provide for a reduction in a local educational agency's reasonable tax effort for school construction financing if and to the extent such local educational agency exerts more than a reasonable tax effort to meet such other educational expenses;

(d) sets forth standards and procedures for determining the order of priority for projects under the plan in case the allocation of the State for any year under this Act is not adequate to permit the making, during the period for which such allocation is available, of all Federal commitments requested by local educational agencies in the State; which standards and procedures

shall assure (1) that the highest priority will be given to local educational agencies which are least able, solely because of lack of economic resources, to finance from the resources available to them the full cost of the school facilities needed to relieve or prevent overcrowding, double shifts, or unhealthful or hazardous conditions, and (2) that in other respects the order of priority will be based on relative need for financial aid in the construction of such school facilities and the relative urgency of the need for such facilities;

(e) provides for affording to every applicant whose application to be included in a State request under section 7 for a Federal commitment is denied, an opportunity for a hearing before the State educational agency;

(f) provides for the establishment of standards on a State level for planning and construction of school facilities;

(g) provides that the State educational agency will make such reports to the Commissioner, in such form and containing such information, as are reasonably necessary to enable the Commission to perform his duties under this Act.

Federal commitments

Sec. 7. (a) In the case of each project for the construction of school facilities for a local educational agency to be financed by obligations for which the State educational agency requests a Federal commitment under this Act, the State educational agency shall include in its request

(1) a description of the school facilities project with respect to which the request is made and its estimate of the cost of construction of such project;

(2) the amount of the obligations which are to be covered by the commitment;

(3) a certification—

(A) that it has determined, in accordance with the standards and procedures in the State plan approved under section 6, that the local educational agency is eligible for such commitment with respect to such obligations and such project is entitled to priority over other projects within the State;

(B) that such project is consistent with any applicable State redistricting plans or policies and is in accord with applicable State construction laws and standards;

(C) if any portion of the cost of construction of such project is not to be met from the proceeds of such obligations, that the financing of such portion has been arranged; (4) assurance, satisfactory to the Commissioner—

(A) that the local educational agency will take appropriate steps, including a public offering of the obligations, to secure the most favorable rate of interest and other terms for such obligations;

(B) that the local educational agency will, during each year in which such obligations are outstand ing exert the reasonable tax effort,

determined for it pursuant to the State plan, for financing its school construction needs, will certify to the Commissioner the amount of the revenues thereby produced, and will apply any surplus in such revenues to payment of the principal and interest becoming due in such year on the obligations covered by such commitment. For purposes of this subparagraph, (i) the existence and amount of any surplus in revenues produced by exercise of a reasonable tax effort shall be determined by adding to the revenues produced by the exercise of the reasonable tax effort any other resources available to the local educational agency for payments on account of debts incurred for construction of school facilities subtracting from the sum thereby obtained any payments made on account of debts incurred for such purpose, by the local educational agency before the request for the Federal debt service commitment here involved was filed by the State educational agency, and further subtracting therefrom any payments made on account of debts incurred for such purpose by the local educational agency after such filing but approved by the State educational agency upon a finding that the school facilities project for which such debts were incurred is needed to relieve or prevent overcrowding, double shifts, or unhealthful or hazardous conditions.

(b) If the Commissioner finds that the request of a State educational agency for a Federal commitment with respect to any obligations meets the requirements of subsection (a) and that the amount of such obligations does not exceed the amount remaining in the State's allocation or allocations available for the purpose, the Commissioner shall, subject to the provisions of section 8, make the Federal debt service commitment requested with respect to the obligations specified.

(c) In the case of a project for the construction of school facilities for a local educational agency which would in all respects qualify for a Federal commitment under this section but for the local educational agency's inability by reason of State legal restrictions to issue obligations,

the State educational agency may request the Commissioner to reserve out of any amount remaining in the State's allocation or allocations available for a fiscal year, an amount equal to the obligations that would, if issued by the local educational agency, qualify for a Federal commitment. If the Commissioner finds that the obligations of such agency in the amount requested would if issued qualify for a Federal commitment, the State's allocation for such year shall be charged in the amount of such obligations and the Commissioner shall make a Federal commitment with respect to obligations of such agency in such amount which are issued by such agency at any time prior to June 30, 1968.

State Debt Service Commitments Sec. 8. No Federal commitment may be made with respect to any obligations for financing, in whole or in part, the construction of a school facilities project unless the State makes an equally binding commitment to pay one-half of the principal and interest annually becoming due on such obligations; except that the State may make a capital grant to cover part of the cost of such construction, in which case the Federal debt service commitment with respect to so much of such obligations as do not exIceed the amount of such capital grant shall be to pay in full the principal and interest annually becoming due thereon. States Exclusively Responsible for School Construction Financing Sec. 9. If exclusive responsibility for the financing of the construction of school facilities in any State, or in any portion of a State, has been assumed by the State, the Commissioner may, to the extent he deems such action necessary to achieve the purposes of this Act, modify or make inapplicable to such State or portion thereof, as the case may be, any of the provisions of this Act which he determines to be in appropriate by reason of the absence of a local educational agency or agencies responsible for such financing.

Federal Payment

Sec. 10. The Commissioner shall from time to time pay in advance or otherwise, to such agency or person or persons as may be designated in the request of a State agency pursuant to section 7 with respect to any obligations so much of the principal and interest becoming due thereon each year as is required to be paid under the Federal commitment under this Act. Such payments for any year shall be reduced by the amount, if any, which the local educational agency issuing such obligations has applied, as provided in section 7(a) (4), out of any surplus in its revenues to the principal and interest on such obligations becoming due in such year.

Failure of Local Educational Agency To Exert Reasonable Tax Effort

Sec. 11. If any local educational agency with respect to whose obligations a Federal commitment under this Act has been made fails, during any period in which such obligations are outstanding, to exert the reasonable tax effort determined for it under the State plan, such agency shall be obligated to repay to the United States the additional amount it would have applied toward payment of the principal and interest on such obligations as provided in section 7(a) (4), had such agency exerted such a tax effort.

Abandonment of Projects

Sec. 12. If any project financed by obligations with respect to which a Federal debt service commitment has been made under this Act, is abandoned or is not completed within a reasonable period, determined under regulations of the Commissioner, after such obligations

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