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which relate to such expenditures, and when funds available

to a local educational agency under this title must be used 3 to concentrate programs or projects in the manner prescribed 4 by section 131 (a) (7) educationally disadvantaged chil5 dren enrolled in private nonprofit schools who are included 6 within the group, attendance areas, or grade and age levels 7 selected for such concentration shall, after consultation with 8 the appropriate private school officials, be assured equitable 9 participation in the purposes and benefits of such programs or projects.

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"(c) (1) The control of funds provided under this title

12 and title to materials, equipment, and property repaired or 13 remodeled therewith shall be in a public agency for the uses 14 and purposes provided in this title, and a public agency will 15 administer such funds and property.

16 "(2) The provision of services pursuant to this section 17 shall be provided by employees of a public agency or through 18 contract by such public agency with a person, an associa19 tion, agency, or corporation who or which in the provision 20 of such services is independent of such private school and 21 of any religious organization, and such employment or con22 tract shall be under the control and supervision of such 23 public agency, and the funds provided under this title shall 24 not be commingled with State or local funds.

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"PART D-GENERAL PROVISIONS

"PAYMENT

"SEC. 141. (a) The Commissioner shall, subject to the

4 provisions of section 142, from time to time pay to each 5 State, in advance or otherwise, the amount which it is eligi6 ble to receive under this title. Such payments shall take into 7 account the extent (if any) to which any previous payment 8 to such State educational agency under this title (whether 9 or not in the same fiscal year) was greater or less than the 10 amount which should have been paid to it.

11 "(b) The Commissioner is authorized to pay to each 12 State amounts equal to the amounts expended by it for the 13 proper and efficient performance of its duties under this title. 14 (including the testing program required by section 122 (a) 15 (1) and evaluations required by section 122 (a) (5)), ex16 cept that the total of such payments in any fiscal year shall 17 not exceed

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“(1) 2 per centum of the total maximum grants for the State as determined under part B for that fiscal year;

or

"(2) $300,000 or $50,000 in the case of Puerto Rico, Guam, American Samoa, the Virgin Islands, or the Trust Territory of the Pacific Islands, whichever is

the greater.

"(c) (1) No payments shall be made under this title

95-545-73 - pt. 1 - 6

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1 for any fiscal year to a State which has taken into considera2 tion payments under this title in determining the eligibility

3 of any local educational agency in that State for State aid, or

4

the amount of that aid, with respect to the free public educa5 tion of children during that year or the preceding fiscal year. "(2) No payments shall be made under this title to any

6

7 local educational agency for any fiscal year unless the State. 8 educational agency finds that the combined per pupil expendi9 ture (as determined in accordance with regulations of the 10 Commissioner) of that agency and the State with respect to 11 the provision of free, public education by that agency for the 12 preceding fiscal year was not less than such combined per 13 pupil effort for that purpose for the second preceding fiscal 14 year.

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"ADJUSTMENTS WHERE NECESSITATED BY

APPROPRIATIONS

"SEC. 142. If the sums appropriated for any fiscal year 18 for making the payments provided in this title are not suf19 ficient to pay in full the total amounts which State educa20 tional agencies are eligible to receive under this title for 21 such fiscal year such payments shall be ratably reduced, 22 except that the amount available for payment to each State 23 educational agency for the purposes of section 141 (b) need 24 not be ratably reduced, but may be determined by the Com25 missioner in accordance with the needs of such agency. In

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1 case additional funds become available for making payments 2 under this title for that year, such reduced amounts shall be 3 increased on the same basis that they were reduced. In 4 order to permit the most effective use of all appropriations 5 made to carry out this title, the Commissioner may set 6 dates by which State educational agencies must certify to 7 him the amounts for which the applications of educational 8 agencies have been or will be approved by the State. If 9 the maximum grant a local educational agency would receive 10 after any ratable reduction which may have been required 11 under the first sentence of this section is more than an 12 amount which the State educational agency determines, in 13 accordance with regulations prescribed by the Commissioner, 14 such agency will use, the excess amount shall be made avail15 able first to educational agencies in that State, except that 16 the aggregate amount shall not exceed the maximum grant 17 to which such agency would have been entitled. Determina18 tions of the educational agencies to which such excess amounts shall be made available shall be made by the State 20 educational agency in furtherance of the purposes of this 21 title in accordance with criteria prescribed by the Commis22 sioner which are designed to assure that such excess amounts 23 will be made available to other eligible educational agencies 24 with the greatest need. In the event excess amounts re

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1 main after carrying out the preceding two sentences of this 2 section, such excess amounts shall be distributed among the 3 other States as the Commissioner shall prescribe for use by 4 local educational agencies in such States for the purposes of this title in such manner as the respective State educational 6 agencies shall prescribe.

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DISADVANTAGED CHILDREN ENROLLED IN PRIVATE

NONPROFIT SCHOOLS

"SEC. 143. (a) If a State is prohibited by law from 11 providing for the testing or evaluation of children enrolled 12 in private nonprofit elementary and secondary schools, or 13 for the participation in special programs for educationally 14 disadvantaged children enrolled in such schools, as required 15 by this title, the Commissioner may waive such requirement 16 and shall arrange for the provision of services to such chil17 dren through arrangements which shall be subject to the re18 quirements of section 132.

19 "(b) If the Commissioner determines that a State has 20 substantially failed to provide for the participation on an 21 equitable basis of educationally disadvantaged children en22 rolled in private nonprofit elementary and secondary schools