proving their ability to benefit from occupational training and otherwise increasing their opportunities for more productive and profitable employment, and making them better able to meet their adult responsibilities. (Pub. L. 88-452, title II, § 212, Aug. 20, 1964, 78 Stat. 520.)

§ 2802. Grants to States; use of funds.

(a) From the sums appropriated to carry out this subchapter, the Director shall make grants to States which have State plans approved by him under this section.

(b) Grants under subsection (a) of this section may be used, in accordance with regulations of the Director, to

(1) assist in establishment of pilot projects by local educational agencies, relating to instruction in public schools, or other facilities used for the purpose by such agencies, of individuals described in section 2801 of this title, to (A) demonstrate, test, or develop modifications, or adaptations in the light of local needs, of special materials or methods for instruction of such individuals, (B) stimulate the development of local educational agency programs for instruction of such individuals in such schools or other facilities, and (C) acquire additional information concerning the materials or methods needed for an effective program for raising adult basic educational skills;

(2) assist in meeting the cost of local educational agency programs for instruction of such individuals in such schools or other facilities; and (3) assist in development or improvement of technical or supervisory services by the State educational agency relating to adult basic education programs.

(Pub. L. 88-452, title II, § 213, Aug. 20, 1964, 78 Stat. 520.)

§ 2803. State plans; conditions for approval; opportunity for hearing.

(a) The Director shall approve for purposes of this part the plan of a State which

(1) provides for administration thereof by the State educational agency;

(2) provides that such agency will make such reports to the Director, in such form and containing such information, as may reasonably be necessary to enable the Director to perform his duties under this part and will keep such records and afford such access thereto as the Director finds necessary to assure the correctness and verification of such reports;

(3) provides such fiscal control and fund accounting procedures as may be necessary to assure proper disbursement of and accounting for Federal funds paid to the State under this part (including such funds paid by the State to local educational agencies);

(4) provides for cooperative arrangements between the State educational agency and the State health authority looking toward provision of such health information and services for individuals described in section 2801 of this title as may be available from such agencies and as may reasonably be necessary to enable them to benefit from

36-500 0-65-vol. 9-41

the instruction provided under programs conducted pursuant to grants under this part; and

(5) sets forth a program for use, in accordance with section 2802(b) of this title, of grants under this part which affords assurance of substantial progress, within a reasonable period and with respect to all segments of the population and all areas of the State, toward elimination of the inability of adults to read and write English and toward substantially raising the level of education of individuals described in section 2801 of this title.

(b) The Director shall not finally disapprove any State plan submitted under this part, or any modification thereof, without first affording the State educational agency reasonable notice and opportunity for a hearing. (Pub. L. 88-452, title II, § 214, Aug. 20, 1964, 78 Stat. 520.)

§ 2804. Allotments.

(a) Reservation of amounts; limitation on allotments to Territories and possessions; manner of allotment.

From the sums allocated for grants to States under section 2802 of this title for any fiscal year, the Director shall reserve such amount, but not in excess of 2 per centum thereof, as he may determine, and shall allot such amount among Puerto Rico, Guam, American Samoa, and the Virgin Islands according to their respective needs for assistance under this part. The remainder of the sums so allocated for a fiscal year shall be alloted by the Director on the basis of the relative number of individuals in each State who have attained age eighteen and who have completed not more than five grades of school or have not achieved an equivalent level of education, as determined by the Director on the basis of the best and most recent information available to him, including any relevant data furnished to him by the Department of Commerce. The amount allotted to any State under the preceding sentence for any fiscal year which is less than $50,000 shall be increased to that amount, the total thereby required being derived by proportionately reducing the amount allotted to each of the remaining States under the preceding sentence, but with such adjustments as may be necessary to prevent the allotment of any of such remaining States from being thereby reduced to less than $50,000. For the purposes of this subsection, the term "State" shall not include Puerto Rico, Guam, American Samoa, and the Virgin Islands.

(b) Reallotments.

The portion of any State's allotment under subsection (a) of this section for a fiscal year which the Director determines will not be required, for the period such allotment is available, for carrying out the State plan (if any) approved under this part shall be available for reallotment from time to time, on such dates during such period as the Director may fix, to other States in proportion to the original allotments to such States under subsection (a) of this section for such year, but with such proportionate amount for any of such other States being reduced to the extent it exceeds the sum which the Director estimates such State needs and will be able

to use for such period for carrying out its State plan approved under this part; and the total of such reductions shall be similarly reallocated among the States whose proportionate amounts are not so reduced. Any amount reallotted to a State under this subsection during a year shall be deemed part of its allotment under subsection (a) of this section for such year.

(c) Availability of allotments.

The allotment of any State under subsection (a) of this section for the fiscal year ending June 30, 1965, shall, except to the extent reallotted under subsection (b) of this section, remain available until June 30, 1966, for obligation by such State for carrying out its State plan approved under this part. (Pub. L. 88-452, title II, § 215, Aug. 20, 1964, 78 Stat. 521.) § 2805. Payment of Federal share of expenditures.

(a) From a State's allotment available for the purpose, the Federal share of expenditures, under its State plan, for the purposes set forth in section 2802 (b) of this title shall be paid to such State. Such payments shall be made in advance on the basis of estimates by the Director; and may be made in such installments as the Director may determine, after making appropriate adjustments to take account of previously made overpayments or underpayments; except that no such payments shall be made for any fiscal year unless the Director finds that the amount available for expenditures for adult basic educational programs and services from State sources for such year will be not less than the amount expended for such purposes from such sources during the preceding fiscal year.

(b) For the fiscal year ending June 30, 1965, and the fiscal year ending June 30, 1966, the Federal share for each State shall be 90 per centum. For the succeeding fiscal year the Federal share for any State shall be 50 per centum. (Pub. L. 88-452, title

II, § 216, Aug. 20, 1964, 78 Stat. 522.)

§ 2806. Operation of State plans; hearings and judicial review.

(a) Non-compliance; termination of payments.

Whenever the Director, after reasonable notice and opportunity for hearing to the State educational agency administering a State plan approved under this part, finds that

(1) the State plan has been so changed that it no longer complies with the provisions of section 2803 of this title, or

(2) in the administration of the plan there is a failure to comply substantially with any such provision,

the Director shall notify such State agency that no further payments will be made to the State under this part (or in his discretion, that further payments to the State will be limited to programs under or portions of the State plan not affected by such failure), until he is satisfied that there will no longer be any failure to comply. Until he is so satisfied, no further payments may be made to such State under this part (or payment shall be limited to programs under or portions of the State plan not affected by such failure).

(b) Appeal procedure.

Upon

A State education agency dissatisfied with a final action of the Director under section 2803 of this title or subsection (a) of this section may appeal to the United States court of appeals for the circuit in which the State is located, by filing a petition with such court within sixty days after such final action. A copy of the petition shall be forthwith transmitted by the clerk of the court to the Director, or any officer designated by him for that purpose. The Director thereupon shall file in the court the record of the proceedings on which he based his action, as provided in section 2112 of Title 28. the filing of such petition, the court shall have jurisdiction to affirm the action of the Director or to set it aside, in whole or in part, temporarily or permanently, but until the filing of the record, the Director may modify or set aside his order. The findings of the Director as to the facts, if supported by substantial evidence, shall be conclusive, but the court, for good cause shown, may remand the case to the Director to take further evidence, and the Director may thereupon make new or modified findings of fact and may modify his previous action, and shall file in the court the record of the further proceedings. Such new or modified findings of fact shall likewise be conclusive if supported by substantial evidence. The judgment of the court affirming or setting aside, in whole or in part, any action of the Director shall be final, subject to review by the Supreme Court of the United States upon certiorari or certification as provided in section 1254 of Title 28. The commencement of proceedings under this subsection shall not, unless so specifically ordered by the court, operate as a stay of the Director's action. (Pub. L. 88-452, title II, § 217, Aug. 20, 1964, 78 Stat. 522.)

§ 2807. Definitions.

For purposes of this part

(1) the term "State educational agency" means the State board of education or other agency or officer primarily responsible for the State supervision of public elementary and secondary schools, or, if different, the agency or officer primarily responsible for supervision of adult basic education in public schools, whichever may be designated by the Governor or by State law, or, if there is no such agency or officer, an agency or officer designated by the Governor or by State law;

(2) the term "local educational agency" means a board of education or other legally constituted local school authority having administrative control and direction of public elementary or secondary schools in a city, county, township, school district, or political subdivision in a State, except that if there is a separate board or other legally constituted local authority having administrative control and direction of adult basic education in public schools therein, it means such other board or authority.

(Pub. L. 88-452, title II, § 218, Aug. 20, 1964, 78 Stat. 523.)

PART C.-VOLUNTARY ASSISTANCE Program for NEEDY CHILDREN

§ 2821. Statement of purpose.

The purpose of this part is to allow individual Americans to participate in a personal way in the war on poverty, by voluntarily assisting in the support of one or more needy children, in a program coordinated with city or county social welfare agencies. (Pub. L. 88-452, title II, § 219, Aug. 20, 1964, 78 Stat. 523.)

§ 2822. Establishment of information and coordination center; duties; interference with State and local welfare agencies.

(a) In order to carry out the purposes of this part, the Director is authorized to establish a section within the Office of Economic Opportunity to act as an information and coordination center to encourage voluntary assistance for deserving and needy children. Such section shall collect the names of persons who voluntarily desire to assist financially such children and shall secure from city or county social welfare agencies such information concerning deserving and needy children as the Director shall deem appropriate.

(b) It is the intent of the Congress that the section established pursuant to this part shall act solely as an information and coordination center and that nothing in this part shall be construed as interfering with the jurisdiction of State and local welfare agencies with respect to programs for needy children. (Pub. L. 88-452, title II, § 220, Aug. 20, 1964, 78 Stat. 523.)

The Director shall carry out the programs provided for in this subchapter during the fiscal year ending June 30, 1965, and the two succeeding fiscal years. For the purpose of carrying out this subchapter, there is hereby authorized to be appropriated the sum of $340,000,000 for the fiscal year ending June 30, 1965; and for the fiscal year ending June 30, 1966, and the fiscal year ending June 30, 1967, such sums may be appropriated as the Congress may hereafter authorized by law. (Pub. L. 88-452, title II, § 221, Aug. 20, 1964, 78 Stat. 524.)

aggregate to any low income rural family where, in the judgment of the Director, such loans have a reasonable possibility of effecting a permanent increase in the income of such families by assisting or permitting them to

(A) acquire or improve real estate or reduce encumbrances or erect improvements thereon,

(B) operate or improve the operation of farms not larger than family sized, including but not limited to the purchase of feed, seed, fertilizer, livestock, poultry, and equipment, or

(C) participate in cooperative associations; and/or to finance nonagricultural enterprises which will enable such families to supplement their income.

(b) Loans under this section shall be made only if the family is not qualified to obtain such funds by loan under other Federal programs. (Pub. L. 88-452, title III, § 302, Aug. 20, 1964, 78 Stat. 524.)

§ 2852. Loans to local cooperative associations.

The Director is authorized to make loans to local cooperative associations furnishing essential processing, purchasing, or marketing services, supplies, or facilities predominantly to low-income rural families. (Pub. L. 88-452, title III, § 303, Aug. 20, 1964, 78 Stat. 524.)

§ 2853. Limitations on assistance.

No financial or other assistance shall be provided under this part unless the Director determines that— (a) the providing of such assistance will materially further the purposes of this part, and

(b) in the case of assistance provided pursuant to section 2852 of this title, the applicant is fulfilling or will fulfill a need for services, facilities, or activities which is not otherwise being met. (Pub. L. 88-452, title III, § 304, Aug. 20, 1964, 78 Stat. 524.)

§ 2854. Loan terms and conditions.

Loans pursuant to section 2851 and 2852 of this title shall have such terms and conditions as the Director shall determine, subject to the following limitations:

(a) there is reasonable assurance of repayment of the loan;

(b) the credit is not otherwise available on reasonable terms from private sources or other Federal, State, or local programs:

(c) the amount of the loan, together with other funds available, is adequate to assure completion of the project or achievement of the purposes for which the loan is made;

(d) the loan bears interest at a rate not less than (1) a rate determined by the Secretary of the Treasury, taking into consideration the average market yield on outstanding Treasury obligations of comparable maturity, plus (2) such additional charge, if any, toward covering other costs of the program as the Director may determine to be consistent with its purposes;

(e) with respect to loans made pursuant to section 2852 of this title, the loan is repayable within not more than thirty years; and

(f) no financial or other assistance shall be provided under this part to or in connection with any

corporation or cooperative organization for the production of agricultural commodities or for manufacturing purposes.

(Pub. L. 88-452, title III, § 305, Aug. 20, 1964, 78 Stat. 524.)

PART B.-ASSISTANCE FOR MIGRANT, AND OTHER SEASONALLY EMPLOYED, AGRICULTURAL EMPLOYEES AND THEIR FAMILIES

§ 2861. Development of programs.

The Director shall develop and implement as soon as practicable a program to assist the States, political subdivisions of States, public and nonprofit agencies, institutions, organizations, farm associations, or individuals in establishing and operating programs of assistance for migrant, and other seasonally employed, agricultural employees and their families which programs shall be limited to housing, sanitation, education, and day care of children. Institu

tions, organizations, farm associations, or individuals shall be limited to direct loans. (Pub. L. 88-452, title III, § 311, Aug. 20, 1964, 78 Stat. 525.)

PART C.-AUTHORIZATION OF APPROPRIATIONS

§ 2871. Authorization of appropriations for fiscal years

1965-1967.

The Director shall carry out the program provided for in this subchapter during the fiscal year ending June 30, 1965, and the two succeeding fiscal years. For the purpose of carrying out this subchapter, there is hereby authorized to be appropriated the sum of $35,000,000 for the fiscal year ending June 30, 1965; and for the fiscal year ending June 30, 1966, and for the fiscal year ending June 30, 1967, such sums may be appropriated as the Congress may hereafter authorize by law. Not to exceed $15,000,000 of the funds appropriated under other subchapters of this chapter for the fiscal year ending June 30, 1965, may also be utilized for the purposes of part B of this subchapter. (Pub. L. 88-452, title III, § 321, Aug. 20, 1964, 78 Stat. 525.)

PART D.-INDEMNITY PAYMENTS TO DAIRY FARMERS § 2881. Indemnity payments.

(a) Authorization for payments to dairy farmers directed to remove their milk from commercial markets.

The Secretary of Agriculture is authorized to make indemnity payments, at a fair market value, to dairy farmers who have been directed since January 1, 1964, to remove their milk from commercial markets because it contained residues of chemicals registered and approved for use by the Federal Government at the time of such use. Such indemnity payments shall continue to each dairy farmer until he has been reinstated and is again allowed to dispose of his milk on commercial markets.

(b) Authorization of appropriations.

There is hereby authorized to be appropriated such sums as may be necessary to carry out the purposes of this chapter.

(c) Termination of authority.

The authority granted under this section shall expire on January 31, 1965. (Pub. L. 88-452, title III, § 331, Aug. 20, 1964, 78 Stat. 525.)

SUBCHAPTER IV.-EMPLOYMENT AND INVESTMENT INCENTIVES

§ 2901. Statement of purpose.

It is the purpose of this subchapter to assist in the establishment, preservation, and strengthening of small business concerns and improve the managerial skills employed in such enterprises; and to mobilize for these objectives private as well as public managerial skills and resources. (Pub. L. 88-452, title IV, § 401, Aug. 20, 1964, 78 Stat. 526.)

§ 2902. Loans, participations, and guaranties; authorization; limitations; conditions.

The Director is authorized to make, participate (on an immediate basis) in, or guarantee loans, repayable in not more than fifteen years, to any small business concern (as defined in section 632 of Title 15 and regulations issued thereunder), or to any qualified person seeking to establish such a concern, when he determines that such loans will assist in carrying out the purposes of this subchapter, with particular emphasis on employment of the longterm unemployed: Provided, however, That no such loans shall be made, participated in, or guaranteed if the total of such Federal assistance to a single borrower outstanding at any one time would exceed $25,000. The Director may defer payments on the principal of such loans for a grace period and use such other methods as he deems necessary and appropriate to assure the successful establishment and operation of such concern. The Director may, in his discretion, as a condition of such financial assistance, require that the borrower take steps to improve his management skills by participating in a management training program approved by the Director. The Director shall encourage, as far as possible, the participation of the private business community in the program of assistance to such concerns. (Pub. L. 88-452, title IV, § 402, Aug. 20, 1964, 78 Stat. 526.) § 2903. Coordination with community action programs. No financial assistance shall be provided under section 2902 of this title in any community for which the Director has approved a community action program pursuant to subchapter II of this chapter unless such financial assistance is determined by him to be consistent with such program. (Pub. L. 88-452, title IV, § 403, Aug. 20, 1964, 78 Stat. 526.)

§ 2904. Financing under Small Business Act.

Such lending and guaranty functions under this subchapter as may be delegated to the Small Business Administration may be financed with funds appropriated to the revolving fund established by section 633 (c) of Title 15 for the purposes of sections 636 (a), 636(b), and 637(a) of Title 15. (Pub. L. 88-452, title IV, § 404, Aug. 20, 1964, 78 Stat. 526.) § 2905. Loan terms and conditions.

Loans made pursuant to section 2902 of this title (including immediate participation in and guaranties of such loans) shall have such terms and conditions as the Director shall determine, subject to the following limitations

(a) there is reasonable assurance of repayment of the loan;

(b) the financial assistance is not otherwise available on reasonable terms from private sources or other Federal, State, or local programs;

(c) the amount of the loan, together with other funds available, is adequate to assure completion of the project or achievement of the purposes for which the loan is made;

(d) the loan bears interest at a rate not less than (1) a rate determined by the Secretary of the Treasury, taking into consideration the average market yield on outstanding Treasury obligations of comparable maturity, plus (2) such additional charge, if any, toward covering other costs of the program as the Director may determine to be consistent with its purposes: Provided, however, That the rate of interest charged on loans made in redevelopment areas designated under the Area Redevelopment Act shall not exceed the rate currently applicable to new loans made under section 2505 of this title; and

(e) fees not in excess of amounts necessary to cover administrative expenses and probable losses may be required on loan guaranties.

(Pub. L. 88-452, title IV, § 405, Aug. 20, 1964, 78 Stat. 526.)

REFERENCES IN TEXT

The Area Redevelopment Act, referred to in the text, is classified to chapter 28 of this title.

§ 2906. Limitation on financial assistance.

No financial assistance shall be extended pursuant to this subchapter where the Director determines that the assistance will be used in relocating establishments from one area to another or in financing subcontractors to enable them to undertake work theretofore performed in another area by other subcontractors or contractors. (Pub. L. 88-452, title IV, § 406, Aug. 20, 1964, 78 Stat. 527.)

§ 2907. Duration of program.

The Director shall carry out the programs provided for in this subchapter during the fiscal year ending June 30, 1965, and the two succeeding fiscal years. (Pub. L. 88-452, title IV, § 407, Aug. 20, 1964, 78 Stat. 527.)

SUBCHAPTER V.-WORK EXPERIENCE PROGRAMS

§ 2921. Statement of purpose.

It is the purpose of this subchapter to expand the opportunities for constructive work experience and other needed training available to persons who are unable to support or care for themselves or their families. In carrying out this purpose, the Director shall make maximum use of the programs available under the Manpower Development and Training Act of 1962, as amended, and Vocational Education Act of 1963. (Pub. L. 88-452, title V, § 501, Aug. 20, 1964, 78 Stat. 527.)

REFERENCES IN TEXT

The Manpower Development and Training Act of 1962, as amended, referred to in the text, is classified to chapter 30 of this title.

The Vocational Education Act of 1963, referred to in the text, is classified to sections 15aa, 15bb, 15aaa and 35-35n of Title 20, Education.

§ 2922. Payments for experimental, pilot, and demonstration projects.

In order to stimulate the adoption of programs designed to help unemployed fathers and other needy persons to secure and retain employment or to attain or retain capability for self-support or personal independence, the Director is authorized to transfer funds appropriated or allocated to carry out the purposes of this subchapter to the Secretary of Health, Education, and Welfare to enable him to make payments for experimental, pilot, or demonstration projects under section 1115 of the Social Security Act, subject to the limitations contained in section 409 (a) (1) to (6), inclusive, of such Act, in addition to the sums otherwise available pursuant thereto. The costs of such projects to the United States for the fiscal year ending June 30, 1965, shall, notwithstanding the provisions of such Act, be met entirely from funds appropriated or allocated to carry out the purposes of this subchapter. (Pub. L. 88-452, title V, § 502, Aug. 20, 1964, 78 Stat. 527).

REFERENCES IN TEXT

Section 1115 of the Social Security Act, referred to in the text, is classified to section 1315 of this title. Section 409(a) (1) to (6), inclusive, of such Act, referred to in the text, means section 409 (a) (1)—(6) of the Social Security Act, which is classified to section 609 (a) (1)-(6) of this title.

Such Act, referred to in the text, means the Social Security Act, which is classified to chapter 7 of this title. § 2923. Authorization of appropriations.

The Director shall carry out the programs provided for in this subchapter during the fiscal year ending June 30, 1965, and the two succeeding fiscal years. For the purpose of carrying out this subchapter, there is hereby authorized to be appropriated the sum of $150,000,000 for the fiscal year ending June 30, 1965; and for the fiscal year ending June 30, 1966, and the fiscal year ending June 30, 1967, such sums may be appropriated as the Congress may hereafter authorize by law. (Pub. L. 88452, title V, § 503, Aug. 20, 1964, 78 Stat. 528.)

SUBCHAPTER VI.-ADMINISTRATION AND

COORDINATION

PART A.-ADMINISTRATION

§ 2941. Office of Economic Opportunity.

(a) Establishment; appointment of Director, Deputy Director and Assistant Directors; functions of Deputy Director and Assistant Directors. 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 three 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.

(b) Transfer authority.

Notwithstanding the provisions of section 133z3(b) of Title 5, at any time after one year from August 20, 1964 the President may, by complying with