(c) Amounts paid to the Commissioner under subsection (a) shall be used to redeem any outstanding obligations of the Commissioner issued pursuant to section 312 and any excess shall be deposited in the Treasury of the United States as miscellaneous receipt.

ADDITIONAL CONDITIONS OF AGREEMENT

SEC. 309. In adidtion to the foregoing provisions and such other provisions as may be necessary to protect the financial interests of the United States, each agreement entered into by the Commissioner with respect to any one or more issues of obligations of a State school-financing agency shall provide

(a) that (1) all such obligations shall mature in not more than thirtytwo years from the earliest date of any of such obligations and the first payment of principal shall become due not later than the end of the third year following such earliest date, and (2) the proceeds of sale of such obligations shall be used to finance the cost (including interest prior to, during, and for such period not exceeding one year after completion of construction as may be provided in the agreement, and other necessary carrying charges) of construction of school facilities by the State school-financing agency, the local educational agencies, or otherwise, for use by local educational agencies reqeusting such facilities;

(b) that such school facilities shall be limited to those certified by the State educational agency to be needed for current or reasonably anticipated enrollments and to be consistent with any applicable State redistricting plans or policies, and that construction thereof will be in accord with applicable State construction laws and standards;

(c) that such school facilities, upon completion of construction, shall (1) be made available for use by the local educational agency for the school district in which the school facilities are located, (2) if the State so desires, be conveyed to such local educational agency upon the making of adequate provision for repayment of advances made by the Commissioner with respect to the issue of obligations and for retirement for such issue or an agreed upon portion thereof, as provided in the agreement; and

(d) that the payments for the use of such facilities shall be fixed, charged, and collected in amounts which will in the aggregate, together with other sums available for the purpose, provide sufficient funds to pay, to the extent payment is not otherwise provided for, (1) the annual debt service on the issue of obligations, and (2) in each year until the latest maturity date of such issue of obligations, for deposit in the supplemental reserve fund, an amount equal to one-fourth of 1 per centum of the original principal amount of such issue of obligation, and (3) the cost of the maintenance, repair, replacement, and insurance of such facilities, and administrative and other expenses of the State school-financing agency in connection with such facilities or the financing thereof.

AUTHORIZATION OF APPROPRIATIONS

SEO. 310. There are hereby authorized to be appropriated for the fiscal year beginning July 1, 1959, and the next three fiscal years, such sums, not to exceed an aggregate of $150,000,000, as may be necessary to provide the initial Federal advances authorized by this title to be made to basic reserve funds.

PERIOD DURING WHICH OBLIGATIONS ISSUED

SEC. 311. Federal advances may be made pursuant to this title only with respect to obligations issued in the period beginning July 1, 1959, and ending June 30, 1963.

OBLIGATIONS ISSUED BY COMMISSIONER

SEC. 312. (a) To obtain funds for additional advances under section 305(b), the Commissioner shall issue notes, debentures, or other obligations for purchase by the Secretary of the Treasury. The total amount of such obligations issued in any year may not exceed the aggregate amount needed for such additional advances for such year.

(b) Obligations issued by the Commissioner under this section shall be in such forms and denominations, have such maturities, and be subject to such terms and conditions as may be prescribed by the Commissioner, with the ap

proval of the Secretary of the Treasury. Such obligations shall bear interest at a rate determined by the Secretary of the Treasury after taking into consideration the current average market yields of outstanding marketable obligations of the United States having comparable maturities. The Secretary of the Treasury is authorized and directed to purchase any obligations of the Commissioner issued under this section and for such purpose is authorized to use as a public debt transaction the proceeds from the sale of any securities issued under the Second Liberty Bond Act, as amended, and the purposes for which securities may be issued under such Act, as amended, are extended to include any purchases of the Commissioner's obligations hereunder. There are hereby authorized to be appropriated such sums as may be necessary, together with repayments made by State school-financing agencies hereunder, for payments on obligations issued by the Commissioner under this section.

ADMINISTRATIVE PROVISIONS

SEC. 313. (a) The Commissioner, in addition to other powers conferred by this Act, shall have power to agree to modifications of agreements made under this title and to pay, compromise, waive, or release any right, title, claim, lien, or demand, however arising or acquired under this title; except that nothing in this subsection shall be construed to affect the power of the Attorney General in the conduct of litigation arising under this Act.

(b) Financial transactions of the Commissioner in making advances pursuant to this title, and vouchers approved by the Commissioner in connection with such financial transactions, shall be final and conclusive upon all officers of the Government; except that all such transactions shall be subject to audit by the General Accounting Office at such times and in such manner as the Comptroller General may by regulation prescribe.

SUITS AGAINST THE UNITED STATES

SEC. 314. Any State school-financing agency with which the Commissioner has made an agreement under this title, or any holder of obligations with respect to which a reserve fund has been established under this title, may bring suit against the United States to enforce any duty of the Commissioner under this title or any undertaking of the Commissioner under an agreement under this title. In any action arising under this title to which the United States is a party, the district courts of the United States shall have jurisdiction, without regard to the amounts involved. Such action shall be brought in the district court of the United States for the judicial district in which the plaintiff, or any of the plaintiffs if there are more than one, resides, or has his principal place of business or, if he does not have his principal place of business within any such judicial district, in the District Court of the United States for the District of Columbia.

TAX EXEMPT STATUS OF OBLIGATIONS

SEC. 315. Obligations of any State school-financing agency, including interest thereon, with respect to which advances are made pursuant to this title, and income of such agency in connection with the school facilities financed by such obligations, shall be exempt from all taxes (other than estate, inheritance, and gift taxes) now or hereafter imposed by the United States.

TITLE IV-FEDERAL GRANT ASSISTANCE TO STATES FOR ADMINISTRATION OF STATE PROGRAMS TO INCREASE SCHOOL CONSTRUCTION

AUTHORIZATION OF APPROPRIATIONS

SEC. 401. There are hereby authorized to be appropriated $5,000 for the fiscal year beginning July 1, 1959, $7,000,000 for the fiscal year beginning July 1, 1960, $5,000,000 for the fiscal year beginning July 1, 1961, and $3,000,000 for the fiscal year beginning July 1, 1961, for grants to States to assist them in meeting their administrative expenses in the development and initiation of State programs designed to increase public-school construction and promote efficiency in such construction.

ALLOTMENTS AND PAYMENTS

SEC. 402. (a) From the sums appropriated for any fiscal year pursuant to section 401, the Commissioner shall allot to each State an amount bearing the same ratio to such sums as the school-age population of such State bears to the school-age population of all of the States. The allotment to any State under the preceding sentence for any fiscal year which is less than $25,000 (or, in the case of Guam or the Virgin Islands, which is less than $12,500) shall be increased to that amount, the total of the increases thereby required being derived by proportionately reducing the allotments of each of the remaining States under the preceding sentence, but with such adjustments as may be necessary to prevent the allotment of any of such remaining States from being thereby reduced to less than that amount.

(b) From each State's allotment under this section for any fiscal year, the Commissioner shall pay to such State 50 per centum of the State's administrative expensives in the development of any State program for increasing construction of school facilities or promoting greater efficiency in planning or financing the construction of such facilities, or in the initiation of any such program when authorized by law, including the development and initiation of programs such as those to

(1) provide sufficient qualified personnel to counsel and assist local educational agencies in formulating sound long-range construction programs, and extend State technical assistance to the local educational agencies in the planning and financing of construction of school facilities;

(2) extend State financial aid to local educational agencies, through loans, grants, or otherwise, in the construction of school facilities;

(3) adjust or modify unduly restrictive debt or tax limits or other obstacles to adequate and economical financing of construction of school facilities, including the basing of debt or tax limits on the full value of real property; or

(4) achieve a more efficient organization of school districts in the State. (c) No payment may be made under this title with respect to any program unless the State plan approved under section 403 includes such program or has been modified to include it and unless the State educational agency certifies that it is a new program for the State (which, for purposes of this title, includes an addition to an existing program of the State). In the case of any program of the State (or any addition to a program) initiated after December 31, 1958, the continuation thereof shall be considered a new program for purposes of the preceding sentence if submitted under this title by the State prior to July 1, 1960. (d) Payments under this section with respect to any program may be made during a period of not to exceed three years beginning with the commencement of the first fiscal year for which any payment is made with respect to such program from an allotment under this section, but only if such program has been submitted under this title prior to July 1, 1961.

APPROVAL OF STATE PLANS

SEC. 403. The Commissioner shall approve any State plan for purposes of this title if such plan

(a) provides that the State educational agency shall be the sole agency for carrying out programs under the plan, either directly or through arrangements with other agencies of the State;

(b) provides such accounting, budgeting, and other fiscal methods and procedures as are necessary for the proper and efficient administration of programs under the plan;

(c) provides for the making of such reports to the Commissioner, in such form and containing such information, as are reasonably necessary to enable the Commissioner to perform his duties under this title; and

(d) sets forth the programs proposed to be carried out under the plan and the general policies to be followed in doing so.

METHOD OF MAKING AND COMPUTING PAYMENTS

SEC. 404. The method of computing and paying amounts pursuant to section 402 shall be as follows:

(a) The Commissioner shall, prior to the beginning of each calendar quarter or other period prescribed by him, estimate the amount to be paid to each State under the provisions of such section for such period, such estimate to be based

on such records of the State and information furnished by it, and such other investigation, as the Commissioner may find necessary.

(b) The Commissioner shall pay to the State, from the allotment available therefor, the amount so estimated by him for such period, reduced or increased, as the case may be, by any sum (not previously adjusted under this paragraph) by which he finds that his estimate of the amount to be paid the State for any prior period under such section was greater or less than the amount which should have been paid to the State for such prior period under such section. Such payments shall be made in such installments as the Commissioner may determine.

(c) Any funds paid to a State under this title which are not used for the purposes for which paid shall be returned to the Commissioner for deposit in the Treasury of the United States as miscellaneous receipts.

TITLE V-GENERAL PROVISIONS

DEFINITIONS

SEC. 501. For purposes of this Act—

(a) The term "Commissioner" means the (United States) Commissioner of Education.

(b) The term "State" includes Hawaii, Puerto Rico, Guam, and the Virgin Islands and, for purposes of title I only, the District of Columbia.

(c) The term "State educational agency" means the State board of education or other agency or officer primarily responsible for the State supervision of public elementary and secondary schools, or, if different, the officer or agency primarily responsible for State construction or supervision of construction of such schools, whichever may be designated by the governor or by State law.

(d) The term "State school-financing agency" means the single agency, official, governmental entity, or instrumentality of a State, which is authorized to construct, or finance the construction of, school facilities for use by local educational agencies in the State.

(e) 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 city, county, township, school district, or political subdivision in a State; except that, in any State in which a State agency has exclusive responsibility for the financing of the construction of school facilities, it means such State agency. If a separate public authority, other than a State school-financing agency, has responsibility for the provision or maintenance of school facilities for any local educational agency or the financing of the construction thereof, such term includes such other authority.

(f) The term "school-age population" means that part of the population which is between the ages of five and seventeen, both inclusive, and such school-age population for the several State shall be determined by the Commissioner on the basis of the population between such ages for the most recent year for which satisfactory data are available from the Department of Commerce.

(g) The term "debt service" means the aggregate amount required to pay the interest on and principal of each issue of obligations.

(h) The term "annual debt service" means the aggregate amount required to pay the interest on and principal of each issue of obligations becoming due in each successive twelve-month period designated in accordance with the agreement under title III.

(i) The term "school facilities" includes classrooms and related facilities for public elementary and secondary education; initial equipment, machinery, and utilities necessary or appropriate for school purposes; and interests in land (including site, grading, and improvement) on which such facilities are constructed. Such term does not include athletic stadia, or structures, or facilities intended primarily for events, such as athletic exhibitions, contests, or games, for which admission is to be charged to the general public. For purposes of title I, such term does not include interests in land, or off-site improvements.

(j) The terms "construct", "constructing", and "construction" include the preparation of drawings and specifications for school facilities; erecting, building, acquiring, altering, remodeling, improving, or extending school facilities; and the inspection and supervision of the construction of school facilities.

WITHHOLDING OF FUNDS AND JUDICIAL REVIEW

SEC. 502. (a) Whenever the Commissioner, after reasonable notice and opportunity for hearing to the State educational agency, finds that—

(1) the State plan approved under section 104 or 403, as the case may be, has been so changed that it no longer complies with the requirements of such section; or

(2) in the administration of the plan there is a failure to comply substantially with any such requirement; the Commissioner shall notify such State agency that no further payments will be made to the State from its allotments under section 102 or 402, as the case may be (or, in his discretion, that further payments will not be made to the State for projects or programs under the State plan affected by such failure), until he is satisfied that there will no longer be any such failure. Until he is so satisfied the Commissioner shall make no further payments to such State from its allotments under such section (or shall limit payments to projects or programs under the State plan in which there is no such failure). The foregoing provisions of this subsection shall not apply to payment of any amount reserved under section 105 (b) with respect to any school facilities project not affected by such failure, except that, after notice as provided in this subsection to any State, the Commissioner may suspend the making of further reservations of funds under section 105 (b) for projects in such State pending the making of the findings under this subsection.

(b) (1) If any State is dissatisfied with the Commissioner's action under subsection (a) of this section, such State may appeal to the United States court of appeals for the circuit in which such State is located. The summons and notice of appeal may be served at any place in the United States.

(2) The findings of fact by the Commissioner, unless substantially contrary to the weight of the evidence, shall be conclusive; but the court, for good cause shown, may remand the case to the Commissioner to take further evidence, and the Commissioner may thereupon make new or modified findings of fact and may modify his previous action. Such new or modified findings of fact shall likewise be conclusive unless substantially contrary to the weight of the evidence.

(3) The court shall have jurisdiction to affirm the action of the Commissioner or to set it aside, in whole or in part. The judgment of the court shall be subject to review by the Supreme Court of the United States upon certiorari or certification as provided in title 28, United States Code, section 1254.

UTILIZATION OF OTHER AGENCIES

SEC. 503. In administering the provisions of this Act, the Commissioner is authorized to utilize the services and facilities of any agency of the Federal Government and, without regard to section 3709, as amended, of the Revised Statutes, of any other public or nonprofit agency or institution, in accordance with agreements between the Secretary of Health, Education, and Welfare and the head thereof. Payment for such services and facilities shall be made in advance or by way of reimbursement, as may be agreed upon by the Secretary and the head of the agency or institution concerned.

DELEGATION OF COMMISSIONER'S FUNCTIONS

SEC. 504. The Commissioner is authorized to delegate any of his functions under this Act, except the making of regulations, to any officer or employee of the Office of Education.

APPROPRIATION FOR ADMINISTRATION

SEC. 505. There are hereby authorized to be appropriated for each fiscal year to the Department of Health, Education, and Welfare such sums as may be necessary for administration of this Act.

(S. 1016 appears on p. 142 and S. 1088 appears on p. 472.)