Two Texas Panhandle school districts are no longer subject to part of a 1970 desegregation order that requires student transfers to be race neutral.

A federal appeals court in New Orleans Tuesday ruled in the case of the Samnorwood and Harrold school districts.

Both sued Texas after they were penalized for violating the sweeping 38-year-old order. The order was implemented after the Justice Department found nine Texas school districts were still racially segregated.

The efforts require that students transferring into or out of their home school districts only be allowed if the move doesn't impact racial makeup of either school by more than one percent. It's three percent for smaller schools.

The 5th U.S. Circuit Court of Appeals says the two districts should no longer be subject to the 1970 ruling or Texas Education Agency's penalties.

For the 2002-03 school year, Harrold had an enrollment of 112 students: 1 percent black, 31 percent Hispanic and 63 percent white. Samnorwood's enrollment for the same school year was 101 students: 3 percent black, 20 percent Hispanic and 75 percent white.

They were penalized in 2004.