is of the lowest average per pupil expenditure of any of the fifty States. The grant which Puerto Rico shall be eligible to receive under this subpart for a fiscal year shall be the amount arrived at by multiplying the number of such handicapped children in Puerto Rico by the product of

(A) the percentage determined under the preceding sentence, and

(B) 32 per centum of the average per pupil expenditure in the United States.

(c) COUNTING OF CHILDREN TRANSFERRING FROM STATE TO LOCAL PROGRAMS.-In the case where a child described in subsection (a) leaves an educational program for handicapped children operated or supported by the State agency in order to participate in such a program operated or supported by a local educational agency, such child shall be counted under subsection (b) if (1) he continues to receive an appropriately designed educational program and (2) the State agency transfers to the local educational agency in whose program such child participates an amount equal to the sums received by such State agency under this section which are attributable to such child, to be used for the purposes set forth in section 147.

(20 U.S.C. 2771) Enacted Aug. 21, 1974, P.L. 93-380, sec. 101, 88 Stat. 491, 492; redesignated and amended Nov. 1, 1978, P.L. 95-561, sec. 101(a), 92 Stat. 2180.

PROGRAM REQUIREMENTS

SEC. 147. A State shall use the payments made under this subpart only for programs and projects (including the acquisition of equipment and, where necessary, the construction of school facilities) which are designed to meet the special educational needs of handicapped children. Such programs and projects shall be administered and carried out in a manner consistent with subpart 3 of part A, other than sections 122, 123, 125, 126(d), and 126(e) thereof. The State agency shall provide assurances to the Commissioner that each such child in average daily attendance counted under subsection (b) of section 146 will be provided with such a program, commensurate with his special needs, during any fiscal year for which such payments are made.

(20 U.S.C. 2772) Enacted Aug. 21, 1974, P.L. 93-380, sec. 101, 88 Stat. 491, 492; redesignated and amended Nov. 1, 1978, P.L. 95-561, sec. 101(a), 92 Stat. 2180, 2181; amended Aug. 6, 1979, P.L. 96-46, sec. 1(10), 93 Stat. 339.

Subpart 3-Programs for Neglected and Delinquent Children

AMOUNT AND ENTITLEMENT

SEC. 151. (a) ENTITLEMENT TO GRANTS.-A State agency which is directly responsible for providing free public education for children in institutions for neglected or delinquent children or in adult correctional institutions shall be entitled to receive a grant under this subpart for any fiscal year (but only if grants received under this subpart are used only for children in such institutions).

(b) AMOUNT OF GRANT.-(1) Except as provided in sections 156 and 157, the grant which such an agency (other than the agency for Puerto Rico) shall be eligible to receive shall be an amount

equal to 40 per centum of the average per pupil expenditure in the State (or (A) in the case where the average per pupil expenditure in the State is less than 80 per centum of the average per pupil expenditure in the United States, of 80 per centum of the average per pupil expenditure in the United States, or (B) in the case where the average per pupil expenditure in the State is more than 120 per centum of the average per pupil expenditure in the United States, of 120 per centum of the average per pupil expenditure in the United States) multiplied by the number of such neglected or delinquent children in average daily attendance, as determined by the Commissioner, at schools for such children operated or supported by that agency, including schools providing education for such children under contract or other arrangement with such agency, in the most recent fiscal year for which satisfactory data are available.

(2) For each fiscal year, the Commissioner shall determine the percentage which the average per pupil expenditure in Puerto Rico is of the lowest average per pupil expenditure of any of the fifty States. The grant which Puerto Rico shall be eligible to receive under this subpart for a fiscal year shall be the amount arrived at by multiplying the number of such neglected or delinquent children in Puerto Rico by the product of—

(A) the percentage determined under the preceding sentence, and

(B) 32 per centum of the average per pupil expenditure in the United States.

(20 U.S.C. 2781) Enacted Aug. 21, 1974, P.L. 93-380, sec. 101, 88 Stat. 494; redesignated and amended Nov. 1, 1978, P.L. 95-561, sec. 101(a), 92 Stat. 2181.

PROGRAM REQUIREMENT

SEC. 152. (a) USE OF PAYMENTS.-A State agency shall use payments under this subpart only for programs and projects (including the acquisition of equipment and where necessary the construction of school facilities) which are designed to meet the special educational needs of children in institutions for neglected or delinquent children or in adult correctional institutions. Such programs and projects shall be designed to support educational services supplemental to the basic education of such children which must be provided by the State, and such programs and projects shall be administered and carried out in a manner consistent with subpart 3 of part A, other than sections 122, 123, 125, 126(d), and 126(e) thereof. (b) THREE-YEAR PROJECTS.-Where a State agency operates programs under this title in which children are likely to participate for more than one year, the State educational agency may approve the application for a grant under this subpart for a period of more than one year, but not to exceed three years.

(20 U.S.C. 2782) Enacted Aug. 21, 1974, P.L. 93-380, sec. 101, 88 Stat. 494; redesignated and amended Nov. 1, 1978, P.L. 95-561, sec. 101(a), 92 Stat. 2181, 2182; amended Aug. 6, 1979, P.L. 96-46, sec. 1(11), 93 Stat. 339.

TRANSITION SERVICES

SEC. 153. (a) GRANTS AUTHORIZED.-The Commissioner is authorized to make grants to State and local educational agencies to support projects to facilitate the transition of children from State oper

ated institutions for neglected and delinquent children into locally operated programs. Grants under this section shall be used to provide special educational services for such children in schools other than State operated institutions.

(b) APPROPRIATIONS AUTHORIZED.-There are authorized to be appropriated for the purposes of this section for any fiscal year, not to exceed 5 per centum of the amount State agencies are entitled to receive under section 151 for that year.

(20 U.S.C. 2783) Enacted Aug. 21, 1974, P.L. 93-380, sec. 101, 88 Stat. 494; redesignated and amended Nov. 1, 1978, P.L. 95-561, sec. 101(a), 92 Stat. 2182.

Subpart 4-General Provisions for State Operated Programs

RESERVATION OF FUNDS FOR TERRITORIES

SEC. 156. There is authorized to be appropriated for each fiscal year for purposes of each of subparts 1, 2, and 3 of this part, an amount equal to not more than 1 per centum of the amount appropriated for such year for such subparts, for payments to Guam, American Samoa, the Virgin Islands, the Northern Mariana Islands, and the Trust Territory of the Pacific Islands under each such subpart. The amounts appropriated for each such subpart shall be allotted among Guam, American Samoa, the Virgin Islands, the Northern Mariana Islands, and the Trust Territory of the Pacific Islands according to their respective need for such grants, based on such criteria as the Commissioner determines will best carry out the purposes of this title.

(20 U.S.C. 2791) Enacted Aug. 21, 1974, P.L. 93-380, sec. 101, 88 Stat. 494; redesignated and amended Nov. 1, 1978, P.L. 95-561, sec. 101(a), 92 Stat. 2182.

MINIMUM PAYMENTS FOR STATE OPERATED PROGRAMS

SEC. 157. No State shall receive in any fiscal year prior to October 1, 1983, pursuant to subpart 1, 2, or 3 of this part an amount which is less than 85 per centum of the amount which that State received in the prior fiscal year pursuant to the comparable sections of this title as in effect immediately preceding the enactment of the Education Amendments of 1978 or the comparable subpart of this part, whichever was in effect for such prior fiscal year, and, for any fiscal year ending prior to October 1, 1982, no State shall receive, pursuant to subpart 1 of this part, an amount which is less. than 100 per centum of the amount that State received in the prior fiscal year pursuant to the comparable section of this title as in effect immediately prior to the enactment of the Education Amendments of 1978 or under subpart 1 of this part, whichever was in effect for such prior fiscal year.

(20 U.S.C. 2792) Enacted Aug. 21, 1974, P.L. 93-380, sec. 101, 88 Stat. 495; amended Apr. 21, 1976, P.L. 94-273, sec. 3(8), 90 Stat. 376; amended Oct. 12, 1976, P.L. 94-482, secs. 501(b)(1)(a), 501(o), 90 Stat. 2236, 2238; amended Sept. 24, 1977, P.L. 95-112, sec. 2(a)(2), 91 Stat. 911; redesignated and amended Nov. 1, 1978, P.L. 95-561, sec. 101(a), 92 Stat. 2182, 2183.

PART C-STATE ADMINISTRATION OF PROGRAMS AND PROJECTS

Subpart 1—Applicability; State Applications

APPLICABILITY

SEC. 161. The provisions of this part (other than section 162 and subpart 3) shall apply in any fiscal year in which the provisions of section 510(b)(2) of this Act are not met.

(20 U.S.C. 2801) Enacted Nov. 1, 1978, P.L. 95-561, sec. 101(a), 92 Stat. 2183.

STATE APPLICATIONS

SEC. 162. (a) SUBMISSION OF STATE APPLICATIONS.-Any State desiring to participate under this title (except with respect to the program provided for in subpart 1 of part B relating to migratory children) shall have on file with the Commissioner an application submitted by its State educational agency.

(b) CONTENTS OF STATE APPLICATIONS.-Each application required by subsection (a) shall contain (1) satisfactory assurances that the State educational agency will comply with the requirements of this part, and (2) such information as the Commissioner may consider necessary for him to make the findings required by section 182.

(20 U.S.C. 2802) Enacted Nov. 1, 1978, P.L. 95-561, sec. 101(a), 92 Stat. 2183.

Subpart 2-Duties Imposed on State Educational Agencies

APPLICATION APPROVAL

SEC. 164. (a) REQUIREMENTS FOR APPROVAL.-(1) A State educational agency shall approve an application of a local educational agency or a State agency under this title if (A) such State educational agency is satisfied, after considering the factors specified in paragraph (2), that such applicant agency will use the funds received under the application in a manner which meets the requirements of this title, the General Education Provisions Act, and the rules, regulations, procedures, guidelines, criteria, or other requirements adopted by such agency which pertain to programs and projects assisted under this title, and (B) such applicant agency is not out of compliance with a determination of the State educational agency or the Commissioner that it repay funds paid it under this title which were misused, and is not out of compliance with a compliance agreement under section 169(c).

(2) A State educational agency may approve an application under paragraph (1), only after it has considered, where pertinent, (A) the results of Federal and State audits, (B) the results of Federal and State monitoring reports, (C) administrative complaints made by parents or other individuals concerning the applicant agency's compliance with this title, and (D) evaluations conducted under section 124(g).

(b) PAYMENTS.-Except as provided in section 194, a State educational agency may make payments from funds received under this title only for programs and projects which it has approved under subsection (a).

(c) OPPORTUNITY FOR HEARING.-A State educational agency shall not finally disapprove in whole or in part any application for funds under part A or under subpart 2 or subpart 3 of part B without first affording the local educational agency or other applicant submitting the application reasonable notice and opportunity for a hearing.

(20 U.S.C. 2811) Enacted Nov. 1, 1978, P.L. 95-561, sec. 101(a), 92 Stat. 2183-2184.

STATE RULEMAKING

SEC. 165. Nothing in this title shall be deemed to prohibit a State educational agency from adopting rules, regulations, procedures, guidelines, criteria, or other requirements applicable to programs and projects assisted under this title if they do not conflict with the provisions of this title, with regulations promulgated by the Commissioner implementing this title, or with other applicable Federal law. The Commissioner shall encourage a State educational agency, in adopting such rules, regulations, procedures, guidelines, criteria, or other requirements to recognize the special and unique needs and circumstances of the State and of each local educational agency in the State.

(20 U.S.C. 2812) Enacted Nov. 1, 1978, P.L. 95-561, sec. 101(a), 92 Stat. 2184.

TECHNICAL ASSISTANCE AND DISSEMINATION OF INFORMATION

SEC. 166. Each State educational agency shall carry on a comprehensive program to provide technical assistance to local educational agencies and State agencies with respect to the use of funds received under this title. Such a program shall include technical assistance for management procedures, for planning, development, implementation, and evaluation of programs, and for preparation of applications, as well as other forms of technical assistance needed by local educational agencies and State agencies. Each State educational agency shall also adopt effective procedures for disseminating to local educational agencies and State agencies (1) significant and relevant information derived from educational research, (2) information about successful compensatory education projects, (3) information about other Federal and State funded programs which may provide needed health, social, and nutrition services to eligible participating children under this title, and (4) such other information as will assist local educational agencies and State agencies in planning, developing, implementing, and evaluating programs assisted under this title.

(20 U.S.C. 2813) Enacted Nov. 1, 1978, P.L. 95-561, sec. 101(a), 92 Stat. 2184.

MONITORING

SEC. 167. Each State educational agency shall adopt standards, consistent with minimum standards established by the Commissioner and with the State monitoring and enforcement plan submitted under section 171, for monitoring the effectiveness of programs and projects assisted under this title. Such standards shall (1) describe the purpose and scope of monitoring; (2) specify the frequency of onsite visits; (3) describe the procedures for issuing and responding to monitoring reports, including but not limited to, the