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1 cies as defined in section 403 (6) (A) in the State, or in the 2 United States (which for the purposes of this subsection 3 means the fifty States and the District of Columbia), as the 4 case may be, plus any direct current expenditures by the 5 State for operation of such agencies (without regard to the 6 sources of funds from which either of such expenditures are 7 made), divided by the aggregate number of children in 8 average daily attendance to whom such agencies provided 9 free public education during such preceding year."

10 EXCLUSION OF CERTAIN CHILDREN AS FEDERALLY CON

11

12

FOR FEDERALLY IMPACTED SCHOOL DISTRICTS

13 SEC. 208. (a) (1) The second sentence of section 15 14 (1) of the Act of September 23, 1950 (Public Law 815, 15 Eighty-first Congress), is amended by striking out “(B) 16 any low-rent housing (whether or not owned by the United 17 States) which is part of a low-rent housing project assisted 18 under the United States Housing Act of 1937, and (C)” 19 and inserting in lieu thereof "and (B)".

20 (2) The fourth sentence of section 15 (1) of such 21 Act is amended (A) by striking out "and" before “(B)" 22 and inserting in lieu thereof a comma, and (B) by insert23 ing before the period at the end thereof the following: ", or 24 (C) any low-rent housing project held under title II of 25 the National Industrial Recovery Act, the Emergency Re

22

1 lief Appropriation Act of 1935, the United States Housing 2 Act of 1937, the Act of June 28, 1940 (Public Law 671,

3 Seventy-sixth Congress), or any law amendatory of or 4 supplementary to any of such Acts".

5

(3) Section 3 of such Act is amended by striking out

6 the last sentence thereof.

7

(4) Section 5 (c) of such Act is amended by striking

8 out the second sentence thereof.

9 (5) The amendments made by this subsection shall 10 become effective July 1, 1973. For purposes of determining 11 the eligibility of a local educational agency for assistance 12 under such section 5 and in determining the number of 13 federally connected children who are in average daily mem14 bership of the schools of such an agency during a base year 15 and the increase since the base year in the number of such 16 children under subsection (a) of such section 5, the amend17 ments made by this section shall be deemed to have been 18 in effect throughout the base period. Section 203 (c) (2) of 19 Public Law 91-230 is repealed.

20

225

(b) (1) The second sentence of section 303 (1) of the

21 Act of September 30, 1950 (Public Law 874, Eighty-first

22 Congress), is amended by striking out "(C) any low-rent 23 housing (whether or not owned by the United States) which 24 is part of a low-rent housing project assisted under the 25 United States Housing Act of 1937, section 516 of the

23

1 Housing Act of 1949, or part (B) of title III of the Eco

2 nomic Opportunity Act of 1964, and (D)” and inserting in 3 lieu thereof "and (C)".

4

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(2) The fourth sentence of such section 303 (1) is 5 amended to read as follows: "Notwithstanding the foregoing 6 provisions of this paragraph, such term does not include (A) any real property used for a labor supply center, labor

8 home, or labor camp for migratory farmworkers, (B) any 9 real property under the jurisdiction of the Post Office Depart10 ment and used primarily for the provision of postal services, or (C) any low-rent housing project held under title II of 12 the National Industrial Recovery Act, the Emergency Relief 13 Appropriation Act of 1935, the United States Housing Act 14 of 1937, the Act of June 28, 1940 (Public Law 871 of the 15 Seventy-sixth Congress), or any law amendatory or supple16 mentary to any of such Acts".

17

(c) Subsection (c) of section 5 of such Act of Septem

18 ber 30, 1950, is amended to read as follows:

19

"(c) If the funds appropriated for a fiscal year for 20 making the payments provided in this title are not suf21 ficient to pay in full the total amounts which the Com22 missioner estimates all local educational agencies will be 23 entitled to receive under this title for such year, the Com24 missioner shall, subject to any limitation contained in the 25 Act appropriating such funds, allocate such funds, other

24

1 than so much thereof as he estimates to be required for 2 section 6, among sections 2, 3, and 4 (a) in the propor3 tion that the amount he estimates to be required under 4 each such section bears to the total estimated to be required 5 under all such sections. The amount thus allocated to any such section shall be available for payment of a percentage 7 of the amount to which each local educational agency is 8 entitled under such section (including, in the case of sec9 tion 3, any increases under subsection (c) (4) thereof), 10 such percentage to be equal to the percentage which the 11 amount thus allocated to such section is of the amount 12 to which all such agencies are entitled under such section. 13 In case the amount so allocated to a section for a fiscal 1 year exceeds the total to which all local educational agen15 cies are entitled under such sections for such year or in case additional funds become available for carrying out 17 such sections, the excess, or such additional funds, as the 18 case may be, shall be allocated by the Commissioner, 19 among the sections for which the previous allocations are 20 inadequate, on the same basis as is provided above for the 21 initial allocation.

16

22 (4) The amendments made by this subsection shall 23 become effective July 1, 1973.

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1 TITLE III-STUDY OF LATE FUNDING OF ELE

21

3

MENTARY AND SECONDARY EDUCATION

PROGRAMS

4 SEC. 301. (a) The Commissioner of Education shall

5 make a full and complete investigation and study to 6 determine

7

8

9

10

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13

14

15

(1) the extent to which late funding of Federal programs to assist elementary and secondary education. handicaps local educational agencies in the effective planning of their education programs, and the extent to which program quality and achievement of program objectives is adversely affected by such late funding, and

(2) means by which, through legislative or administrative action, the problem can be overcome.

(b) Not later than one year after the date of enactment 16 of this Act, the Commissioner of Education shall make a 17 report to the Congress on the study required by subsection (a), together with such recommendations as he may deem. appropriate.

19