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1 school solely on the hasis of residence within the geographic

2 zone which that school serves.

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3 (b) It is further the policy of the United States that no 4 student may be denied attendance at the neighborhood 5 school serving the geographic zone in which he resides on & the basis of race, creed, color, religion, or national origin.

Sec. 203. (a) It is also provided that any student bas 8 the right to transfer and be provided transportation out of g the neighborhood public elementary or secondary school serv10 ing the geographic zone in which he resides if such a student 11 is a member of a minority group and that minority group 12 constitutes at least 50 per centum of the students enrolled in

13 that school.

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14 (b) For the purpose of this section-
15 (1) “minority group” means any individuals who

are Negro, American Indian, Spanish-surnamed Ameri17 can, Portuguese, or Oriental, and, as determined by the

Secretary pursuant to regulations, combinations of 19 any such individuals;

(2) “Spanish-surnamed American” means an in21 dividual of Mexican, Puerto Rican, Cuban, or Spanish 22 origin or ancestry.

SEC. 204. (a) Federal funds shall be made available 24 under the Elementary and Secondary Education Act of 1965 25 or any other provision of law to pay the cost of the assign

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1 ment or transportation of students in accordance with the

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2 provisions contained in section 3 (a) of the Act.

(b) Notwithstanding any other provision of law no 4 officer or employee of any department or agency of the Fed5 eral Government shall order or require the assignment of 6 transportation of students inconsistent with the policy set

7 forth in this title..

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TITLE II-PRIZE SCHOOLS PROGRAM

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SIIORT TITLE

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SEC. 201. This title may be cited as the “Elementary

11 and Secondary Education Systems Act of 1972”.

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STATEMENT OF PURPOSE

13 SEC. 202. It is the purpose of this title to strengthen the 14 concept of the neighborhood school through a program of 15 financial assistance for use in meeting the special needs of 16 educationally disadvantaged children in such schools and 17 for establishing such schools as cducational and cultural cen18 ters for a better community.

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DURATION OF ASSISTANCE

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SEC. 203. The Commissioner shall, in accordance with 21 the provisions of this title, make payments to State educa22 tional agencies for grants to local educational agencies for the 23 period beginning July 1, 1972, and ending June 30, 1976.

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BASIC GRINTS AMOUNT AND ELIGIBILITY

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Sec. 204. (a) There is authorized to be appropriated for

3 each fiscal year for the purpose of this subsection an amount 4 equal to not more than 3 per centum of the amount appropri5 ated for such year for payments to States under section 208, 6 other than payments under such section to jurisdictions ex

7 chuled from the term “State", by this subsection. The Com8 missioner shall allot the amount appropriate pursuant to this 9 subsection among the Commonwealth of Puerto Rico, Guam, 10 American Samoa, the Virgin Islands, and the Trust Territory

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of the Pacific Islands, according to their respective need for 12 such payments. The grants to which a local educational 13 agency shall be eligible to receive pursuant to this subsection 14 shall be allotted as the Commissioner determines will best 15 carry out the purposes of this title.

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(b) (1) In any case in which the Commissioner deter

17 mines that satisfactory data are available, the maximum 18 grant which a local educational agency shall be eligible to 19 receive under this title for any fiscal year shall be an amount 20 equal to the Federal percentage (established pursuant to 21

subsection (d)) multiplied by the average per pupil ex22 penditure in that State or, if greater in the United States, 23 and multiplied by the number of children enrolled in the 24 neighborhood schools of such agency who are age five to

25 seventeen years, inclusive.

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(2) In any other case, the maximum grant for any

2 other local cducational agency in a State shall be deter3 mined on the basis of the aggregate maximum amount of 4 such grants for all such agencies in any county in which the 5 school district in which the particular agency is located 6 which aggregate maximum amount shall be equal to the 7 Federal percentage of such per pupil expenditure multiplied 8 by the number of children enrolled in such neighborhood g schools and shall be allocated among those agencies upon

10 such equitable basis as may be determined by the State cdu11 cational agency in accordance with basic criteria of the Com

12 missioner.

13 (c) For the purpose of this subsection and section 205, 14 the term "neighborhood schools” means any public clemen15 tary or secondary school in which

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(1) 110t less than 75 per centum of the children

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enrolled in such school are assigned to that school on the basis of residence within a specified geographic area

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which that school series and not more than 25 per

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centum are assigned to suc school on the basis of volun

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tary request by the parents or guardian of such children or by reason of au order of a court of competent juris

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diction; and

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(2) (A) not less than 40 per centum of the chil

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dren enrolled in such school are (i) in families having

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an annual income of less than the low-income factor,

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(ii) in families receiving an annual income in excess of the low-income factor from payments under the program of aid to families with dependent children under a State plan approved under title IV of the Social. Security Act, or (ii) living in institutions for neglected or delinquent children (other than such institutions operated by the United States) but not counted for the purpose of a grant to a State agency, or being supported in foster homes with public funds; or

(B) not less than 40 per centum of the children

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enrolled in such school are members of a minority group.

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(d) For the purpose of this section, the "Federal per

14 centage” is 65 per centum and the "low-income factor” is

15 $4,000 for the fiscal year ending June 30, 1973, and shall

16 be increased by the Commissioner to an amount in excess of

17 $4,000 reflecting an increase in the cost of living factor as 18 determined by the Commissioner after consulting with the 19 Secretary of Labor.

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(e) For the purposes of this section, the Commissioner

21 shall determine the number of children aged five to seventeen,

22 inclusive, of families having an annual income of less than

23 the low-income factor (as established pursuant to subsection

24 (d)) on the basis of the most recent satisfactory data avail

25 able from the Department of Commerce. At any time such

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