in connection with vocational education programs under the State plan to whom such education would be useful professionally.

(2) Vocational teacher training supported with funds under SmithHughes, George-Barden, and supplementary acts, will be given only to persons who have had adequate vocational experience or contact in the line of work for which they are preparing themselves as teachers and other vocational education personnel, or who are acquiring such experience or contact as a part of their training.

§ 104.20 Research, demonstration, and experimental programs.

(a) The State plan shall describe the provisions for research, demonstration, and experimental programs designed to improve the quality of vocational education programs authorized under the acts and provided for in the State plan. (For provisions governing special grants by the Commissioner for research and training programs and experimental, developmental, or pilot programs under section 4 (c) of the 1963 act, see provisions in 45 CFR Part 105A.) The State plan shall describe the policies and procedures to be followed by the State board in approving such programs and the methods to be used in evaluating their results. Such programs shall meet the standards and requirements set forth in the acts, regulations, and State plan, which are applicable to the activities affected by such programs, except to the extent provided in paragraph (b) of this section.

(b) A State may, in special cases as a part of program development: (1) Depart from the standards and requirements in its State plan referred to in paragraph (a) of this section, if (i) the expenditures are directed toward carrying out the purposes of the acts and the regulations and (ii) the State board approves each program and promptly furnishes the Commissioner information regarding the purpose and duration of the program and the standards or requirements to be waived.

(2) Depart from the standards and requirements in the regulations of this part, if, in addition to the two conditions set forth in subparagraph (1) of this paragraph, the Commissioner approves each such program and notifies the State boards of all States.

§ 104.21 Administration, supervision, and other ancillary services.

The State plan shall provide for and describe such other ancillary services and activities as are required to assure quality in all vocational education programs which are realistic in terms of actual or anticipated employment opportunities and suited to the needs, interests, and abilities of those being trained. Such other ancillary services and activities may include State and local administration, supervision, and evaluation of vocational education programs and services; and development, dissemination, and evaluation of curricula and instructional materials. (See § 104.4 regarding State board staff.)

CONSTRUCTION

§104.22 Policies and procedures for approval of area vocational education school facility projects.

The State plan shall set forth the following policies and procedures to be

followed by the State board and local educational agencies in approving and undertaking area vocational education school facility projects:

(a) The procedure to be followed in the application process and State level actions on them.

(b) The criteria to be followed by the State board in determining relative priorities of projects, and the procedures to be followed in applying those criteria in determining which project will be approved by the State board.

(c) The terms and conditions required by the State board for approval of projects and the procedures to be followed by the State board in assuring compliance with such terms and conditions by the State board or local educational agency administering the facility and the contractor or subcontractor hired to construct the facility (see § 104.23).

§ 104.23 Terms and conditions for approval of projects.

In prescribing terms and conditions for the approval of projects for Federal financial participation pursuant to § 104.22 (c), the State board shall require the following assurances:

(a) That the facility will be functional and will meet the needs of those persons and communities to be served.

(b) That the projects will be undertaken in an economic manner and will not be elaborate or extravagant in design or materials.

(c) That sufficient funds will be available to meet the State and local share of the cost of constructing the facility.

(d) That, when construction is completed, sufficient State and local funds will be available for effective use of the facility for the purposes for which it is being constructed.

(e) That the interest of the State board or the local educational agency in the facility and in the land on which the facility is located will be sufficient to assure undisturbed use and possession for the purpose of construction and operation of the school facility covered in the project during the expected usable life of such facility.

(f) That representatives of the U.S. Office of Education and such other persons as the Commissioner may designate will have access at all reasonable times to the project wherever it is in preparation or progress, and the contractor will provide proper facilities for such access and inspection.

(g) That all laborers and mechanics employed by contractors and subcontractors on all construction projects assisted under the 1963 Act will be paid wages at rates not less than those prevailing as determined by the Secretary of Labor in accordance with the Davis-Bacon Act (Act of March 3, 1931, P.L. 798, 71st Congress, 46 Stat. 1494 as amended, 40 U.S.C. 276a276a-5, and 29 CFR Part 1 (see 29 F.R. 95); and shall receive overtime compensation in accordance with and subject to the provisions of the Contract Work Hours Standards Act (P.L. 87-581, 76 Stat. 357, 40 U.S.C. 327-332), that such contractors and subcontractors shall comply with the provisions of 29 CFR Part 3 (see 29 F.R. 97), and that all construction contracts and subcontracts shall incorporate the contract clauses required by 29 CFR 5.5 (a) and (c) (see 29 F.R. 100, 101).

WORK-STUDY PROGRAMS

§ 104.24 Supplement to State plan.

All work-study programs for vocational education students supported by a State's allotment of Federal funds under section 13(a) of the 1963 act shall be included in the State plan pursuant to § 104.2 of these regulations and shall be governed by all provisions contained in such plan applicable to work-study programs. As a condition for the allotment of Federal funds under section 13(a) of the 1963 act, the State board is required to include in its plan or submit to the Commissioner an amendment to the State plan containing the provisions required in § 104.25 and § 104.26. Such amendment shall be submitted and approved pursuant to § 104.2(b). (See § 104.45 for allowable expenditures of work-study programs.)

§ 104.25 Requirements of work-study program.

The State plan shall provide that a work-study program meet the following requirements:

(a) Administration. The work-study program will be administered by the local educational agency and made reasonably available (to the extent of available funds) to all qualified youths, in the area served by such agency, who are able to meet the requirements in paragraph (b) of this section.

(b) Eligible students. Employment under the work-study program will be furnished only to a student who (1) has been accepted for enrollment or, if he is already enrolled, is in good standing and in full-time attendance as a full-time student in a program which meets the standards prescribed by the State board and the local educational agency for vocational education programs under the 1963 act; (2) is in need of the earnings from such employment to commence or continue his vocational education program; and (3) is at least fifteen years of age and less than tweny-one years of age at the date of the commencement of employment and is capable in the opinion of the appropriate school authorities of maintaining good standing in his school program while employed under the work-study program.

(c) Limitation on hours and compensation. No student will be employed more than fifteen hours in any week during which classes in which he is enrolled are in session, or for compensation which exceeds $45 per month or $350 per academic year or its equivalent, unless the student is attending a school which is not within reasonable commuting distance from his house, in which case his compensation may not exceed $60 per month or $500 per academic year or its equivalent.

(d) Place of employment. Employment under work-study programs will be for the local educational agency or for some other public agency or institution (Federal, State, or local) pursuant to a written arrangement between the local educational agency and such other agency or institution, and work so performed will be adequately supervised and coordinated and will not supplant present employees of such agency or institution who ordinarily perform such work. In those instances where employment under work-study programs is for a Federal agency or institution, the written arrangement between the local educational agency and the Federal agency or institution will state that students so employed are not Federal employees for any purpose.

(e) Maintenance of effort. In each fiscal year during which a work-study

program remains in effect, the local educational agency will expend for employment of its students an amount in State or local funds that is at least equal to the average annual expenditure for work-study programs of a similar nature during the 3 fiscal years preceding the fiscal year in which the work-study program of such local educational agency was approved. Amended June 29, 1965.

§ 104.26 Approval of work-study programs.

The State plan shall: (a) Set forth the policies and procedures to be followed by the State board in approving work-study programs submitted by local educational agencies and meeting the requirements of § 104.25; (b) set forth principles for determining the priority to be accorded applications from local educational agencies for work-study programs, giving preference to applications submitted by local educational agencies serving communities having substantial numbers of youths who have dropped out of school or who are unemployed; and (c) provide, insofar as financial resources are available, for the undertaking of such programs in the order determined by the application of such principles.

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Subpart C-Federal Financial Participation

GENERAL

§ 104.27 Application of Federal requirements.

Federal funds may be used to share only in expenditures which are made in accordance with the State plan and which meet the requirements of the acts and the regulations in this part. State and local funds used to match these Federal funds must also meet such requirements. As used in these regulations, phrases such as "expenditures may be made under the plan..." or "funds may be expended . . ." mean that the Federal allotments are available for payment of the Federal share thereof.

§ 104.28 Transfer of allotments.

(a) Any portion of any amount allotted to a State in the current fiscal year for use in a particular field of vocational education under the SmithHughes, George-Barden, and supplementary vocational education acts may, upon the Commissioner's approval as described in paragraph (c) of this section, be transferred to or combined with (1) one or more of the other allotments to such State for the same fiscal year for use in a particular field of vocational education under the Smith-Hughes, George-Barden, or supplementary acts, or (2) the allotment to such State in the same fiscal year under section 3 of the 1963 act. The amount so transferred is then subject to the same conditions and requirements as the allotment to which it is transferred, and is no longer subject to the conditions and requirements as the allotment from which it was transferred. Thus, any reference in these regulations to "funds allotted under the act or acts" refers also to funds transferred to the same allotment under such act or acts.

(b) A State board desiring to transfer funds from one allotment to another shall submit to the Commissioner a request for such a transfer. The annual estimate of the State board submitted pursuant to § 104.55(a) may include a request for any desired transfer of funds from one allotment to another, or special requests for that purpose may be made to the U.S. Office of Education subsequent to the submission of the annual estimate. Such requests shall indicate how the current annual estimate will be affected by the transfer and will provide information to permit application of the following criteria:

(1) The transfer will provide vocational training which is more realistic in the light of actual or anticipated manpower needs and employment opportunities.

(2) The transfer will more nearly achieve the objective that all persons in all groups and in all communities of the State will have access to vocational training.

(3) The transfer will assure vocational training of high quality.