Pub. L. 84-949, tit. II, sec. 204

Sec. 204. (a) Subsection (c) of section 3 of such Act is amended by striking out paragraph (1) thereof and inserting the following new paragraphs in lieu thereof: “(c) (1) The amount to which a local educational agency is entitled under this section for any fiscal year ending prior to July 1, 1958, shall be an amount equal to (A) the local contribution rate (determined under subsection (d)) multiplied by (B) the sum of the number of children determined under subsection (a) and one-half of the number determined under subsection (b). “(2) No local educational agency shall be entitled to receive any payment for a fiscal year with respect to a number of children determined under subsection (a) or subsection (b), as the case may be, unless the number of children who were in average daily attendance during such year and to whom such subsection applies— “(A) is ten or more; and “(B) amounts to 3 per centum or more of the total number of children who were in average daily attendance during such year and for whom such agency provided free public education. Notwithstanding the provisions of clause (B) of this paragraph, the Commissioner may waive the 3 per centum condition of entitlement contained in such clause whenever, in his judgment, exceptional circumstances exist which would make the application of such condition inequitable and would defeat the purposes of this Act. “(3) Notwithstanding the preceding provisions of this section, where the average daily attendance at the schools of any local educational agency during the fiscal year ending June 30, 1939, exceeded 35,000— “(A) such agency’s percentage requirement for eligibility (as set forth in paragraph (2) of this subsection) shall be 6 per centum instead of 3 per centum (and those provisions of such paragraph (2) which relate to the lowering of the percentage requirement shall not apply); and 70 Stat. 971 “(B) in determining the number of children under subsection (a) or (b) with respect to whom such agency is entitled to receive payment, the agency shall be entitled to receive payment with respect to only so many of the number of children whose attendance serves as the basis for eligibility under such subsection, as exceeds 3 per centum of the number of all children in average daily attendance at the schools of such agency during the fiscal year for which payment is to be made.” (b) Paragraph (2) of subsection (c) of section 3 of such Act is amended (1) by redesignating such paragraph as paragraph (4), (2) by striking out “1957” and inserting in lieu thereof “1958”, (3) by striking out “the preceding fiscal year" and inserting in lieu thereof “such fiscal year”, (4) by striking out “succeeding fiscal year” and inserting in lieu thereof “two succeeding fiscal years”, (5) by striking out “the preceding year” and inserting in lieu thereof “such year ”, and (6) by striking out “such preceding year” and inserting in lieu thereof “such year”. (c) Subsection (c) of section 3 of such Act is amended by adding at the end thereof the following new paragraph: “(5) The determinations whether a local educational agency has met the percentage requirements for eligibility under paragraphs (2), (3), or (4) of this subsection for any fiscal year shall be made on the basis of estimates by the Commissioner made prior to the close of such year, except that an underestimate made by the Commissioner pursuant to the foregoing provisions of this sentence shall not operate to deprive an agency of its entitlement to any payments under this section to which it would be entitled had the estimate been accurate.” (d) Subsection (e) of section 3 of such Act is amended by striking out “subsection (c) (2)” and inserting in lieu thereof “subsection (c) (4)”.