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Page 57 shall give preference to projects which promote the ownership, participation in ownership, or management of small business concerns by residents of urban areas of high concentration of unemployed or low-income individuals, and to projects which are planned and carried out with the participation of local busi

nessmen.

(d) To the extent feasible, services under this section shall be provided in a location which is easily accessible to the individuals 42 USC and small business concerns served. 2906b

(e) The Administrator of the Small Business Administration shall, in carrying out programs under this section, consult with and take into consideration the views of the Secretary of Commerce, with a view to coordinating activities and avoiding duplication of effort.

(f) The President may, if he determines that it is necessary to carry out the purposes of this part, transfer any of the functions under this section to the Secretary of Commerce.

(g) The Administrator of the Small Business Administration shall provide for an independent and continuing evaluation of programs under this section, including full information on and analysis of the character and impact of managerial assistance >rovided, the location, income characteristics and types of busiesses and individuals assisted, and the extent to which private esources and skills have been involved in these programs. Such valuation together with any recommendations as he deems advisble shall be included in the report required by section 608.

GOVERNMENT CONTRACTS

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SEC. 407. (a) The Administrator of the Small Business Admintration shall take such steps as may be necessary and appro- 42 USC iate, in coordination and cooperation with the heads of other ederal departments and agencies, so that contracts, subconacts, and deposits made by the Federal Government or in conection with programs aided with Federal funds are placed in ich a way as to further the purposes of this title.

(b) The Administrator of the Small Business Administration all provide for the continuing evaluation of programs under is section and the results of such evaluation together with commendations shall be included in the report required by sec▸n 608.

DURATION OF PROGRAM

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SEC. 408. The Administrator of the Small Business Administra- 42 USC n and the Secretary of Commerce shall carry out the programs ɔvided for in this title during the fiscal year ending June 30, 37, and the five succeeding fiscal years.

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TITLE V-WORK EXPERIENCE, TRAINING, AND
DAY CARE PROGRAMS

PART A-WORK EXPERIENCE AND TRAINING PROGRAMS

STATEMENT OF PURPOSE

SEC. 501. It is the purpose of this part to expand the opportunities for constructive work experience and other needed train42 USC ing available to persons (including workers in farm families with less than $1,200 net family income, unemployed heads of families and other needy persons) who are unable to support themselves or their families.

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TRANSFER OF FUNDS

SEC. 502. In order to permit the carrying out of work experience and training programs meeting the criteria set forth in part E of title II of the Manpower Development and Training Act of 1962, the Director is authorized to transfer funds to the Secretary of Health, Education, and Welfare to enable him (1) to make payments under section 1115 of the Social Security Act for experimental, pilot, or demonstration projects which provide pretraining services and basic maintenance, health, family, basic educa42 USC tion, day care, counseling, and similar supportive services required for such programs, and (2) to reimburse the Secretary of Labor for carrying out the activities described in such part E of title II of the Manpower Development and Training Act of 1962. Costs of such projects and activities shall, notwithstanding the provisions of the Social Security Act and the Manpower Development and Training Act of 1962, be met entirely from funds appropriated to carry out this part: Provided, That such funds may not be used to assist families and individuals insofar as they are otherwise receiving or eligible to receive assistance or social services through a State plan approved under titles I, IV, X, XIV, XVI, or XIX of the Social Security Act.

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LIMITATIONS ON WORK EXPERIENCE AND TRAINING PROGRAMS

SEC. 503. (a) The provisions of paragraphs (1) to (6), inclu42 USC sive, of section 409 of the Social Security Act, unless otherwise inconsistent with the provisions of this part, shall be applicable with respect to work experience and training programs assisted with funds under this part. The costs of such programs to the United States shall, notwithstanding the provisions of such Act, be met entirely from funds appropriated or allocated to carry out the purpose of this part.

(b) Work experience and training programs shall be so designed that participation of individuals in such programs will not ordinarily exceed 36 months, except that nothing in this subsection shall prevent the provision of necessary and appropriate follow-up services for a reasonable period after an individual has completed work experience and training.

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(c) Not more than 1212 percent of the sums appropriated or allocated for any fiscal year to carry out the purposes of this part shall be used within any one state. In the case of any work experi- 42 USC ence and training program approved on or after July 1, 1968, not more than 80 percent of the costs of projects or activities referred to in section 502 may be paid from funds appropriated or allocated to carry out this part, unless the Secretary of Health, Education, and Welfare determines, pursuant to regulations prescribed by him establishing objective criteria for such deteminations, that assistance in excess of such percentage is required in furtherance of the purposes of this part. Non-FederaÎ contributions may be in cash or in kind, fairly evaluated, including but not limited to plant, equipment, and services.

DURATION OF PROGRAMS

SEC. 504. The Director shall carry out the programs provided for in this part during the fiscal year ending June 30, 1967, and 42 USC the three succeeding fiscal years. For each such fiscal year only such sums may be appropriated as the Congress may authorize by law.

TRANSITION

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SEC. 505. The Secretary of Labor is authorized to provide work experience and training programs authorized by section 261(a) (3) and (4) of part E of title II of the Manpower Development and Training Act of 1962, commencing July 1, 1967. The Secretary of Health, Education, and Welfare is authorized to provide such work experience and training programs through June 30, 42 USC 1967, and may also continue to completion those work experience and training programs commenced prior to that date, but in no event shall such programs be extended beyond June 30, 1968. After June 30, 1967, the Secretary of Health, Education, and Welfare, pursuant to agreement with the Secretary of Labor which shall include provisions for joint evaluation and approval of the training and work experience aspect of each project or program, may also

(1) with the concurrence of the Secretary of Labor, renew existing projects and programs, or develop and provide new projects or programs, to accomplish the purposes of this part and of part E of title II of the Manpower Development and Training Act of 1962; and

(2) with the concurrence of the Secretary of Labor, develop and provide other work experience and training programs pursuant to such part E, with respect to such projects or parts of projects which the Secretary of Labor is unable to provide after being given notice and a reasonable opportunity to do so.

Before July 1, 1967, the Secretary of Health, Education, and Welfare may, for the purposes of this part and part E of title II of the Manpower Development and Training Act of 1962, utilize the services and facilities available under the manpower development and utilization programs administered by the Department

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of Labor which may include, but not be limited to, testing, counseling, job referral and follow-up services required to assist participants in securing and obtaining employment, training opportunities, either on or off the job, available under the Manpower Development and Training Act of 1962, and relocation assistance to involuntarily unemployed individuals in accordance with the standards prescribed in section 104 of the Manpower Development and Training Act of 1962, and shall compensate the Secretary of Labor for the reasonable costs thereof either by advance or reimbursement.

PART B-DAY CARE PROJECTS

STATEMENT OF PURPOSE

SEC. 521. The purpose of this part is to provide day care for children from families which need such assistance to become or remain self-sufficient or otherwise to obtain objectives related 42 USC to the purposes of this Act, with particular emphasis upon enabling the parents or relatives of such children to choose to undertake or to continue basic education, vocational training, or gainful employment.

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FINANCIAL ASSISTANCE FOR DAY CARE PROJECTS

SEC. 522. (a) The Director is authorized to provide financial assistance to appropriate public agencies and private organizations to pay not to exceed 90 per centum of the cost of planning, conducting, administering, and evaluating projects under which children from low-income families or from urban and rural areas with large concentrations or proportions of low-income persons may receive day care. Non-Federal contributions may be in cash or in kind, fairly evaluated, including but not limited to plant, 42 USC equipment and services. Such day care projects shall provide health, education, social, and such other supportive services as may be needed. Financial assistance under this section may be provided to employers, labor unions, or to joint employer-union organizations, for day care projects established at or in association with a place of employment or training where such projects are financed in major part through private funds. Project costs payable under this part may include costs of renovation and alteration of physical facilities. Financial assistance under this section may be provided in conjunction with or to supplement day care projects under the Social Security Act or other relevant statutes.

(b) The Director may require a family which is not a lowincome family to make payment, in whole or in part, for the day care services provided under this program where the family's financial condition is, or becomes through employment or otherwise, such as to make such payment appropriate.

(c) The Director may provide, directly or through contracts or other arrangements, technical assistance and training necessary for the initiation or effective operation of programs under this part.

Page 61 (d) The Director and the Secretary of Health, Education, and Welfare shall take all necessary steps to coordinate programs under their jurisdictions which provide day care, with a view to establishing, insofar as possible, a common set of program standards and regulations, and mechanisms for coordination at the State and local levels. In approving applications for assistance under this part, the Director shall take into consideration (1) the extent to which applicants show evidence of coordination and cooperation between their projects and other day care programs in the areas which they will serve, and (2) the extent to which unemployed or low-income individuals are to be employed, including individuals receiving or eligible to receive assistance under the Social Security Act.

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(e) Each project to which payments are made hereunder shall provide for a thorough evaluation. This evaluation shall be conducted by such agency or independent public or private organization as the Director shall designate, with a view to determining, 42 USC among other things, the extent to which the day care provided may have increased the employment of parents and relatives of the children served, the extent to which such day care may have reduced the costs of aid and services to such children, the extent to which such children have received health and educational benefits, and the extent to which the project has been coordinated with other day care activities in the area served. Up to 100 per centum of the costs of evaluation may be paid by the Director from funds appropriated for the purposes of carrying out this part, except that where such evaluation is carried on by the assisted agency itself, he may pay only 90 per centum of such costs. Such evaluations, together with a report on the program described in this part, shall be included in the report required by section 608.

DURATION OF PROGRAMS

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SEC. 523. The Director shall carry out the programs provided 42 USC for in this part during the fiscal year ending June 30, 1968, and the four succeeding fiscal years.

TITLE VI-ADMINISTRATION AND COORDINATION

PART A-ADMINISTRATION

OFFICE OF ECONOMIC OPPORTUNITY

SEC. 601. (a) There is hereby established in the Executive Office of the President the Office of Economic Opportunity. The Office shall be headed by a Director who shall be appointed by the President, by and with the advice and consent of the Senate. There shall also be in the Office one Deputy Director and five 42 USC Assistant Directors who shall be appointed by the President, by and with the advice and consent of the Senate. The Deputy Director and the Assistant Directors shall perform such functions as the Director may from time to time prescribe.

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