provide for a full-time director or a full-time executive officer who shall have no substantial duties outside the vocational education program.

§ 104.5 Custody of Federal funds.

The State plan shall provide that the State, through its legislative authority, will designate its State treasurer (or, if there be no State treasurer, the officer exercising similar functions for the State) to receive and provide proper custody of all Federal funds granted under the acts to be disbursed under applicable State laws and regulations on requisition or order of the State board. The State plan shall identify the official so designated to receive the funds. Copies of, or citations to, all directly pertinent laws and interpretations of laws by appropriate State officials or courts indicating the authority of the State treasurer or other official designated to receive, hold, and disburse funds on requisition or order of the State board shall be furnished as part of the State plan.

§ 104.6

Allocating Federal Funds under the 1963 Act.

(a) Policies and procedures. The State plan shall set forth the policies and procedures to be used by the State as criteria in allocating Federal funds allotted to it under section 3 of the 1963 act among the various uses indicated in section 4(a) of the 1963 act and § 104.41(b), and in allocating funds to local educational agencies in the State. Such policies and procedures shall be designed to insure that:

(1) Due consideration is given to

(i) The vocational education needs of all persons of all age groups in all communities of the State, and

(ii) The results of periodic evaluation of State and local vocational education programs and services in light of—

(a) Current and projected manpower needs and job opportunities; (b) The need for maintaining, extending, and improving existing programs and developing new programs of vocational education.

(2) Federal funds allotted to the State under section 3 of the 1963 act shall not be used to supplant State or local funds, and, to the extent practical, shall be used to increase the amounts of State and local funds that would in the absence of such Federal funds be made available for the purposes in section 4(a) of the 1963 act and in § 104.41 (b), toward the end that—

(i) All persons in all communities in the State will have ready access to vocational education.

(ii) Such vocational education is of high quality.

(iii) Such vocational education is suited to the needs, abilities, and interests of the students.

(3) In developing policies and procedures for determining whether, and what amount of, Federal funds will be allocated for direct expenditure by the State board or for expenditure by a local educational agency in a manner pursuant to subparagraph (2) of this paragraph, the State board shall set forth in its State plan criteria for making such determination which take into consideration, among other relevant factors, the following:

(i) The amount of State or local funds budgeted for expenditure by such board or agency for vocational education in the fiscal year in which the allocation of Federal funds is to be made; as compared with

(ii) The amount of State or local funds expended by such board or agency for vocational education in the preceding fiscal year or years, with allowances made for unusually large amounts of funds expended for such long-term purposes as the acquisition of equipment and the construction of area vocational school facilities.

(b) Reports. (1) In the State's annual estimate for the current fiscal year submitted pursuant to § 104.55 (a), the State board shall indicate (i) which amounts of Federal funds to be allotted will be allocated to each of the uses referred to in paragraph (a) of this section, and (ii) how such allocations of Federal funds are designed to insure that the State is meeting the requirements set forth in paragraph (a) of this section. The State board shall also indicate how its allocation of Federal funds among the local educational agencies within the State is designed to insure that the State is meeting such requirements. (2) In the State's annual report for the previous fiscal year submitted pursuant to § 104.55 (b), the State board shall also provide the same type of information relating to allocations of Federal funds as that provided in the annual estimate pursuant to subparagraph (1) of this paragraph, and to what degree expenditures from such allocations enabled the State to meet the requirements set forth in paragraph (a) of this section.

(c) Responsibility of Commissioner. To aid in disclosing situations where Federal funds may be or might have been allocated or used in a manner contrary to the State's policies and procedures set forth in its State plan pursuant to paragraph (a) of this section, the Commissioner shall initially consider the information submitted by the States pursuant to paragraph (b) of this section, including data indicating whether the total amount of State and local funds estimated for expenditure or expended for vocational education in the fiscal year under question appears to be less than that expended for the previous fiscal year, or that such amount was not increased to a degree commensurate with the current needs for vocational education in the State. In the event of such a disclosure the Commissioner or his designated representatives shall obtain such further information as he may require to determine whether a State has in fact complied with such policies and procedures.

§ 104.7 Cooperative arrangements with State employment service.

The State plan shall provide for cooperative arrangements with the public employment service system in the State. Such arrangements shall be approved by the State board and by the State head of such system. Under such cooperative arrangements:

(a) The employment offices will make available to the State board and local educational agencies occupational information regarding reasonable present and future prospects of employment in the community and elsewhere. The State plan shall provide how such information, along with all other pertinent information available, will be considered by the State board or local educational agencies in providing vocational guidance and counseling to students and prospective students and in determining the occupations for which persons are to be trained, and in providing such training.

(b) Guidance and counseling personnel of the State board and local educational agencies working through the cooperative arrangement will make available to the local public employment offices information regarding

the occupational qualifications of persons having completed or completing vocational education courses in schools. The State plan shall provide how such information will be considered in the occupational guidance and placement of such persons.

§ 104.8 Cooperative arrangements with other agencies.

In order to provide all individuals with ready access to suitable vocational education of high quality with offerings which have been developed in light of actual or anticipated opportunities for employment, the State plan may provide for cooperative arrangements between the State board or local educational agency, or both, and other public or nonpublic agencies, institutions and organizations concerned with vocational education programs under the State plan, or having knowledge of or information concerning individuals who have received, are receiving, or are in need of receiving vocational education.

§ 104.9 Metropolitan and other special areas.

(a) The State plan may provide for special arrangements for metropolitan and other areas having special vocational education needs which are not otherwise being sufficiently satisfied. Such arrangements may contain (1) special administrative arrangements and communications channels between the State board and local educational agency or group of agencies in such areas as may be required for the effective development and administration of vocational education programs in such areas; (2) special administrative relationships and communications channels between the local education agency or group of agencies in such areas and the U.S. Office of Education; and (3) special provisions for such agency or group of agencies designed to enable the vocational education needs of persons in such areas and communities to be satisfied more adequately, without being inconsistent with the State board's general responsibility for the administration and supervision of vocational education programs within the State.

(b) Upon entering into a special arrangement between the State board and a local educational agency or group of agencies pursuant to paragraph (a) of this section, the State board shall submit to the Commissioner an appendix to the State plan indicating

(1) The location and extent of each metropolitan or other area covered by such an arrangement, and

(2) The provisions of such special arrangement including whatever special administrative relationships and communications channels between such agency or group of agencies and the U.S. Office of Education have been organized.

(c) Provisions in the State plan or its appendix pursuant to paragraphs (a) and (b) of this section shall be kept current in accordance with the procedure outlined in § 104.2(b).

$104.10 Cooperative agreements with other States.

In order to provide all individuals with ready access to suitable vocational education of high quality with offerings which have been developed in light of actual or anticipated opportunities for employment, the State plan may provide that the State enter into a cooperative arrangement with one or

more other States for the conduct and administration of vocational educational education programs, services, and activities described in § 104.13 to § 104.26. The State plan shall describe the policies and procedures of the State for approval of and participation in such arrangements. Copies of such cooperative agreements (including joint fiscal arrangements, if any) shall be forwarded by each participating State to the U.S. Office of Education for filing with the State plan.

§ 104.11 Minimum qualifications of personnel.

The State plan shall describe the duties and contain the minimum qualifications for all professional personnel having responsibilities in connection with vocational education programs under the State plan. Such minimum qualifications shall apply to all personnel engaged directly or substantially in activities for which funds are used under the State plan regardless of whether there is to be Federal financial participation in their salaries. Such minimum qualifications shall contain standards of experience and education, and other requirements which are reasonable in relation to the duties to be performed.

§ 104.12 State reports.

The State plan shall provide that the State board will make and submit to the Commissioner the reports described in § 104.55, and such other reports in such form and containing such information as the Commissioner may from time to time reasonably require to carry out his functions under the act; and will keep such records, afford such access thereto, and comply with such other provisions as the Commissioner may find necessary to assure the correctness and verification of such reports.

VOCATIONAL EDUCATION PROGRAMS AND SERVICES

§ 104.13 Programs for vocational instruction.

The State plan shall outline and describe the State board's programs for vocational instruction with information on the types of schools, classes, and programs in which instruction is provided, and the standards and requirements of schools or classes providing such instruction which is of high quality and suited to the needs, abilities, and interests of the students. Among such standards and requirements, the State plan shall provide for the following:

(a) Arrangements for instruction. (1) Such instruction will be provided either (i) with respect to funds provided under all the acts, by the State board or local educational agency in schools or classes conducted under public supervision and control, meeting the criteria of subparagraph (2) of this paragraph, or (ii) with respect to funds provided under the 1963 act, under contract with the State board or a local educational agency. Amended June 29, 1965.

(2) To be under "public supervision and control," a school or class must meet the following criteria:

(i) It is organized and operated under the direction of the State board or a local educational agency responsible for expenditure of public school

funds for vocational education in the State or community, and

(ii) The teachers are employed as public school teachers under the conditions generally applicable to the employment of other public school teachers employed by the State board or local educational agency responsible for vocational education, and

(iii) Officials on the staff of the State board or a local educational agency responsible for vocational education have full charge of

(a) Employing teachers

(b) Determining whether pupils qualify for admission to classes

(c) Determining content and organization of courses and curricula.

(3) If the instruction is provided under contract with the State board or local educational agency, such arrangements will comply with the provisions in § 104.14.

(b) Objective of instruction. (1) Vocational instruction will be designed to fit individuals for employment in a recognized occupation. Such instruction will include vocational or technical training or retraining for (i) those preparing to enter a recognized occupation upon the completion of instruction and (ii) those who have already entered an occupation, but desire to upgrade or update their occupational skills and knowledge in order to achieve stability or advancement in employment. When supported by funds allotted under section 3 of the 1963 act, vocational instruction shall be designed only to fit individuals for gainful employment.

(2) All students receiving vocational instruction in preparatory classes under the State plan will have an occupational objective which is a matter of record. This objective may either be a specific recognized occupation or a cluster of closely related occupations in an occupational field.

(c) Occupational orientation of instruction. (1) The instruction will be related to the occupation for which the student is being trained, except that:

(i) Funds allocated under section 3 of the 1963 act may be used to provide instruction necessary for a bona fide vocational student to benefit from instruction related to the occupation for which he is being trained, and

(ii) Funds allotted under the Smith-Hughes Act and title I of the GeorgeBarden Act for certain fields of vocational education may be used for part-time general continuation classes as provided for in § 104.73 (a) (3). (2) As used in this section:

(i) "Instruction related to the occupation for which the student is being trained" means instruction which is designed to fit individuals for employment in a recognized occupation and which is especially and particularly suited to the needs of those engaged in or preparing to engage in such occupation. Such instruction shall include classroom instruction and field, shop, laboratory, cooperative work, or other occupational experience.

(ii) "Instruction which is necessary for a student to benefit from vocational instruction" means instruction which is designed to enable individuals to profit from instruction related to an occupation for which he is being trained by correcting whatever educational deficiencies or handicaps prevent him from benefiting from such instruction. Such instruction must be provided in courses which are an integral part of the vocational education program in which the student is enrolled.

(d) Nonreimbursable instruction—(1) General. Funds under the acts will be available for instruction in general education subjects only if such subjects fit in one of the two categories specified in paragraph (c) (1) of this section. A program of vocational instruction under the State plan may be