to receive an additional special incentive grant equal to not more than the amount by which the current expenditures of that agency for the preceding fiscal year exceeded 105 per centum of such expenditures for the fiscal year ending June 30, 1965. Each such agency which is eligible to receive a basic grant for the fiscal year ending June 30, 1968, shall be eligible to receive an additional special incentive grant equal to not more than the amount by which the current expenditures of that agency for the preceding fiscal year exceeded 110 per centum of such expenditures for the fiscal year ending June 30, 1965.

"APPLICATION

SEC. 205. (a) A local educational agency may receive a basic grant or a special incentive grant under this title for any fiscal year only upon application therefor approved by the appropriate State educational agency, upon its determination (consistent with such basic criteria as the Commissioner may establish

"(1) that payments under this title will be used for programs and projects (A) which are designed to meet the special educational needs of educationally deprived children in school attendance areas having high concentrations of children from lowincome families and (B) which are of sufficient size, scope, and quality to give reasonable promise of substantial progress toward meeting those needs;

"(2) that, to the extent consistent with the number of educationally deprived children in the school district of the local educational agency who attend nonpublic schools, such agency has made provision for including special educational services and arrangements (such as dual enrollment, educational radio and television, and mobile educational services) in which children can participate without full-time public school attendance;

"(3) in the case of any project for construction of school facilities, that the project is not inconsistent with overall State plans for the construction of school facilities and that the requirements of section 209 will be complied with on all such construction projects;

"(4) that effective procedures will be adopted for making continuing and periodic evaluations of the effectiveness of the programs in meeting the special educational needs of children of lowincome families;

"(5) that the local educational agency will make an annual report and such other reports to the State educational agency, in such form and containing such information, as may be reasonably necessary to enable the State educational agency to perform its duties under this title, and will keep such records and afford such access thereto as the State educational agency may find necessary to assure the correctness and verification of such reports; and

"(6) that wherever there is, in the area served by the local educational agency, a community action program approved pursuant to title II of the Economic Opportunity Act of 1964 (Public Law 88-452), the programs and projects have been developed in cooperation with the public or private nonprofit agency responsible for the community action program.

"(b) The State educational agency shall not finally disapprove in whole or in part any application for funds under this title without first

affording the local educational agency submitting the application reasonable notice and opportunity for a hearing.

"ASSURANCES FROM STATES

"SEC. 206. (a) Any State desiring to participate in the program of this title shall submit through its State educational agency to the Commissioner an application, in such detail as the Commissioner deems necessary, which provides satisfactory assurance—

"(1) that, except as provided in section 207 (b), payments under this title will be used only for programs and projects which have been approved by the State educational agency pursuant to section 205(a) and which meet the requirements of that section, and that such agency will in all other respects comply with the provisions of this title, including the enforcement of any obligations imposed upon a local educational agency under section 205 (a);

(2) that such fiscal control and fund accounting procedures will be adopted as may be necessary to assure proper disbursement of, and accounting for Federal funds paid to the State (including such funds paid by the State to local educational agencies) under this title; and

"(3) that the State educational agency will make an annual and such other reports to the Commissioner, in such form and containing such information, as may be reasonably necessary to enable the Commissioner to perform his duties under this title, including such reports as the Commissioner may require (A) to evaluate the effectiveness of payments under this title and of particular programs assisted under it in improving the educational attainment of educationally deprived children and their financial status and requirements, and (B) to determine the amount which the local educational agencies of that State are eligible to receive for any fiscal year, and assurance that such agency will keep such records and afford such access thereto as the Commissioner may find necessary to assure the correctness and verification of such reports. "(b) The Commissioner shall approve an application which meets the requirements specified in subsection (a) and he shall not finally disapprove an application except after reasonable notice and opportunity for a hearing to the State educational agency.

"PAYMENT

"SEC. 207. (a) (1) The Commissioner shall, subject to the provisions of section 208, from time to time pay to each State, in advance or otherwise, the amount which the local educational agencies of that State are eligible to receive under this title. Such paynents shall take into account the extent (if any) to which any previous payment to such State educational agency under this title (whether or not in the same fiscal year) was greater or less than the amount which should. have been paid to it.

"(2) From the funds paid to it pursuant to paragraph (1) each State educational agency shall distribute to each local educational agency of the State which is not ineligible by reason of section 203 (b) and which has submitted an application approved pursuant to section 205 (a) the amount for which such application has been approved, ex

cept that this amount shall not exceed an amount equal to the total of the maximum amount of the basic grant plus the maximum amount of the special incentive grant as determined for that agency pursuant to sections 203 and 204, respectively.

"(b) The Commissioner is authorized to pay to each State amounts equal to the amounts expended by it for the proper and efficient performance of its duties under this title, except that the total of such payments in any fiscal year shall not exceed 1 per centum of the total of the amount of the basic grants paid under this title for that year to the local educational agencies of the State.

"(c) (1) No payments shall be made under this title for any fiscal year to a State which has taken into consideration payments under this title in determining the eligibility of any local educational agency in that State for State aid, or the amount of that aid, with respect to the free public education of children during that year or the preceding fiscal year.

"(2) No payments shall be made under this title to any local educational agency for any fiscal year unless the State educational agency finds that the combined fiscal effort (as determined in accordance with regulations of the Commissioner) of that agency and State with respect to the provision of free public education by that agency for the preceding fiscal year was not less than such combined fiscal effort for that purpose for the fiscal year ending June 30, 1964.

"ADJUSTMENTS WHERE NECESSITATED BY APPROPRIATIONS

"SEC. 208. If the sums appropriated for the fiscal year ending June 30, 1966, for making the payments provided in this title are not sufficient to pay in full the total amounts which all local and State educational agencies are eligible to receive under this title for such year, such amounts shall be reduced ratably. In case additional funds become available for making payments under this title for that year, such reduced amounts shall be increased on the same basis that they were reduced.

"LABOR STANDARDS

"SEC. 209. All laborers and mechanics employed by contractors or subcontractors on all construction projects assisted under this title shall be paid wages at rates not less than those prevaling as determined by the Secretary of Labor in accordance with the Davis-Bacon Act, as amended (40 U.S.C. 276a-276a-5). The Secretary of Labor shall have, with respect to the labor standards specified in this section, the authority and functions set forth in Reorganization Plan Numbered 14 of 1950 (15 F.R. 3176; 5 U.S.C. 133z-15), and section 2 of the Act of June 13, 1934, as amended (40 U.S.C. 276c).

"WITHHOLDING

"SEC. 210. Whenever the Commissioner, after reasonable notice and opportunity for hearing to any State educational agency, finds that there has been a failure to comply substantially with the assurances set forth in the application of that State approved under section 206 (b), the Commissioner shall notify the agency that further payments will not be made to the State under this title (or, in his discretion,

that the State educational agency shall not make further payments under this title to specified local educational agencies affected by the failure) until he is satisfied that there is no longer any such failure to comply. Until he is so satisfied, no further payments shall be made to the State under this title, or payments by the State educational agency under this title shall be limited to local educational agencies not affected by the failure, as the case may be.

"JUDICIAL REVIEW

"SEC. 211. (a) If any State is dissatisfied with the Commissioner's final action with respect to the approval of its application submitted under section 206(a) or with his final action under section 210, such State may, within sixty days after notice of such action, file with the United States Court of Appeals for the circuit in which such State is located a petition for review of that action. A copy of the petition shall be forthwith transmitted by the clerk of the court to the Commissioner. The Commissioner 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, United States Code.

"(b) The findings of fact by the Commissioner, if supported by substantial evidence, shall be conclusive; but the court, for good cause shown, may remand the case to the Commissioner to take further evidence, and the Commissioner 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.

"(c) Upon the filing of such petition, the court shall have jurisdiction to affirm the action of the Commissioner or to set it aside, in whole or in part. The judgment of the court shall be subject to review by the Supreme Court of the United States upon certiorari or certification as provided in title 28, United States Code, section 1254.

"COMPREHENSIVE STUDY

"SEC. 212. The Commissioner shall submit to the Secretary of Health, Education, and Welfare for transmission to the Congress on or before December 31, 1967, a full report of the operation of this title, including its effectiveness in improving the educational attainment of educationally deprived children, and his recommendations as to whether this title should be extended and, if so, as to what amendments thereto should be made."

SEC. 3. (a) The Act of September 30, 1950, Public Law 81-874, as amended (20 U.S.C. 236-244), is further amended by inserting "TITLE III-GENERAL" above the heading for section 7 and by redesignating sections 7, 8, and 9, and references thereto, as sections 301, 302, and 303, respectively.

(b) Subsections (b) and (c) of such section 302 are amended by striking out "this Act" wherever it appears and inserting in lieu thereof "title II".

SEC. 4. (a) Paragraph (2) of the section of such Act herein redesignated as section 303 is amended to read as follows:

"(2) The term 'child', except as used in section 203, means any child who is within the age limits for which the applicable State provides free public education."

(b) Paragraph (4) of such section 303 is amended by inserting before the period at the end thereof ", except that for the purposes of title II such term does not include any education provided beyond grade 12".

(c) (1) Paragraph (8) of such section 303 is amended by inserting "American Samoa," after "the District of Columbia,".

(2) Sections 3(d) and 6(c) are each amended by inserting "American Samoa," after "Guam," each time that it appears.

(d) Such section 303 is further amended by adding at the end thereof the following new paragraphs:

"(11) The term county' means those divisions of a State utilized by the Secretary of Commerce in compiling and reporting data regarding counties.

(12) The term 'construction' includes the preparation of drawings and specifications for school facilities; erecting, building, acquiring, altering, remodeling, improving, or extending school facilities; and the inspection and supervision of the construction of school facilities.

"(13) The term 'school facilities' means classrooms and related facilities (including initial equipment) for free public education and interests in land (including site, grading, and improvements) on which such facilities are constructed, except that such term does not include those gymnasiums and similar facilities intended primarily for exhibitions for which admission is to be charged to the general public."

TITLE II-SCHOOL LIBRARY RESOURCES AND
INSTRUCTIONAL MATERIALS

APPROPRIATIONS AUTHORIZED

SEC. 201. There are hereby authorized to be appropirated $100,000,000 for the fiscal year ending June 30, 1966, and such sums for the fiscal year ending June 30, 1967, and for each of the three succeeding fiscal years as may be necessary for making grants under this title for the acquisition of school library resources and printed and published instructional materials for the use of children and teachers in public and nonprofit private elementary and secondary schools in the State.

ALLOTMENTS TO STATES

SEC. 202. (a) From the sums appropriated pursuant to section 201 for any fiscal year the Commissioner shall allot to each State an amount which bears the same ratio to the amount so appropriated as the number of children enrolled in the public and nonprofit private elementary and secondary schools of that State bears to the total number of children enrolled in such schools in all of the States. The number of children so enrolled shall be determined by the Commissioner on the basis of the most recent satisfactory data available to him.

(b) The amount of any State's allotment under subsection (a) for any fiscal year which the Commissioner determines will not be required for such fiscal year shall be available for reallotment from time to time, such dates during such year as the Commissioner may fix, to other