Pub. L. 85-620, tit. II, sec. 202

Sec. 202. (a) Section 3 (a) of such Act is amended by striking out “ending prior to July 1, 1958”. (b) Section 3 (b) of such Act is amended— (1) by striking out “For such purpose” and inserting in lieu thereof the following: “For the purpose of computing the amount to which a local educational agency is entitled under this section for any fiscal year ending prior to July 1, 1961”; (2) by inserting after “the number of children” the following: “(other than children to whom subsection (a) applies)”; and (3) by striking out the last sentence thereof. (c) Section 3 (c) of such Act is amended— (1) by striking out “ending prior to July 1, 1958,” where it appears in paragraph (1); (2) by striking out the period at the end of clause (B) of paragraph (2) and inserting in lieu thereof a comma and the following: “except that such 3 per centum requirement need not be met by such agency for any period of two fiscal years which follows a fiscal year during which such agency met such requirement and was entitled to payment under the provisions of this section, but the payment, under the provisions of this section to such agency for the second fiscal year of any such two-year period during which such requirement is not met, shall be reduced by 50 per centum of the amount thereof. “For the purposes of this paragraph and paragraph (3), a local educational agency may count as children determined under subsection (b) any number of children determined under subsection (a).”; (3) by striking out “June 30, 1939” where it appears in paragraph (3) and inserting in lieu thereof “June 30, 1957”; (4) by striking out all of paragraph (3) which appears after “exceeded 35,000” and inserting in lieu thereof the following: “, 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 the provisions of the last sentence of such paragraph (2) which relate to the lowering of the percentage requirement shall not apply): Provided, That this paragraph shall not apply to any agency or consolidated agencies which have qualified for payments under this Act before the date of enactment of this proviso, by virtue of having less than thirty-five thousand average daily attendance during the fiscal year ending June 30, 1939.”; (5) by striking out “ending prior to July 1, 1958” where it appears in clause (A) of paragraph (4); and (6) by striking out “effective for the fiscal year beginning July 1, 1955, and the two succeeding fiscal years” where it appears in clause (D) of paragraph (4). (d) Section 3 (d) or such Act is amended— (1) by striking out “most nearly” in clause (1) and inserting in lieu thereof “generally”, and 72 Stat. 560 (2) by striking out the fourth and fifth sentences and inserting in lieu thereof the following: “In no event shall the local contribution rate for any local educational agency in any State in the continental United States for any fiscal year be less than (i) 50 per centum of the average per pupil expenditure in such State or (ii) 50 per centum of the average per pupil expenditure in the continental United States, but not to exceed the average per pupil expenditure in the State: Provided, That if, for the fiscal year ending June 30, 1959, the application of clause (ii) of this sentence results in a lower local contribution rate than resulted from the application of such clause during the fiscal year ending June 30, 1958, as such clause was then in effect, then such clause, as in effect during the fiscal year ending June 30, 1958, shall be in effect during the fiscal year ending June 30, 1959. For the purposes of the preceding sentence the ‘average per pupil expenditure’ in a State, or in the continental United States, shall be the aggregate current expenditures, during the second fiscal year preceding the fiscal year for which the computation is made, of all local educational agencies in the State, or in the continental United States, as the case may be (without regard to the sources of funds from which such expenditures are made), divided by the aggregate number of children in average daily attendance to whom such agencies provided free public education during such preceding fiscal year.”. (e) Section 3 (e) of such Act is amended by adding the word “actually” after the words “(as defined in section 2 (b) (1)) and”.