(a) No program utilizing consolidated application funds shall sanction, perpetuate or promote the segregation of students on the basis of race, ethnicity, religion, sex, or socio-economic status.
(b) No program utilizing consolidated application funds shall:
(1) Create special tracks for the educationally disadvantaged;
(2) Establish adjustment, pregrade, or junior grade classes hr the educationally disadvantaged; or
(3) Physically isolate children from their classmates on a scheduled daily basis, except in the following instances:
(A) At the elementary level, children who are assigned to a regular classroom teacher responsible for their instructional program may be moved temporarily to a physical location other than the regular classroom, provided that such assignment is based on a comprehensive diagnostic assessment of student needs until the diagnosed need has been alleviated. Such an alternate physical location includes, but is not limited to, a reading laboratory, a mathematics laboratory, a bilingual-bicultural learning center, an intergroup education learning center, a diagnostic clinic, or similar facilities where the specific needs of the student may best be served.
(B) At the secondary level, students may be assigned to a special class for one or more periods or their equivalent, provided that such assignment is based on a comprehensive diagnostic assessment of student needs and such assignment will terminate when the diagnosed need has been alleviated.