arrangements for constructing such facility through contracts for paying part or all of the cost of construction or otherwise. The Commissioner may, where he deems such action appropriate, make arrangements, by contract or otherwise, for the operation of such facilities or may make contributions toward the cost of such operation of facilities of this nature whether or not constructed pursuant to, or with the aid provided under, this section. Title to any facility constructed under this section, if vested in the United States, may be transferred by the Commissioner on behalf of the United States to any such college or university or other public or nonprofit private agency or institution, but such transfer shall be made subject to the condition that the facility will be operated for the purposes for which it was constructed and to such other conditions as the Commissioner deems necessary to carry out the objectives of this title and to protect the interests of the United States.

"(c) All laborers and mechanics employed by contractors or subcontractors in the performance of work on construction of any project under this section shall be paid wages at rates not less than those prevailing on similar construction in the locality 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 clause, 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)..

"(d) Payments under this section shall be made in advance or by way of reimbursement, in such installments consistent with construction progress, and on such conditions as the Commissioner may determine.

"(e) As used in this section, the term 'research and related purposes' means research, research training, surveys, or demonstrations in the field of education, or the dissemmination of information derived therefrom, or all of such activities, including (but without limitation) experimental schools, except that such term does not include research, research training, surveys, or demonstrations in the field of sectarian instruction or the dissemination of information derived therefrom.

"DEFINITIONS

"SEC. 5. As used in this Act

"(1) The term 'State' includes, in addition to the several States of the Union, the Commonwealth of Puerto Rico, the District of Columbia, Guam, American Samoa, and the Virgin Islands.

"(2) 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 there is no such officer or agency, an officer or agency designated by the Governor or by State law.

"(3) The term 'nonprofit' as applied to any agency, organization, or institution means an agency, organization, or institution owned and operated by one or more nonprofit corporations or associations no part of the net earnings of which inures, or may lawfully inure, to the benefit of any private shareholder or individual.

"(4) The terms 'construction' and 'cost of construction' include (A) the construction of new buildings and the expansion, remodeling, and alteration of existing buildings, including architects' fees, but not including the cost of acquisition of land or off-site improvements, and (B) equipping new buildings and existing buildings, whether or not expanded, remodeled, or altered.

"SHORT TITLE

"SEC. 6. This Act may be cited as the 'Cooperative Research Act"." TITLE V-GRANTS TO STRENGTHEN STATE DEPARTMENTS OF EDUCATION

APPROPRIATIONS AUTHORIZED

SEC. 501. (a) The Commissioner shall carry out during the fiscal year ending June 30, 1966, and each of the four succeeding fiscal years, a program for making grants to stimulate and assist States in strengthening the leadership resources of their State educational agencies, and to assist those agencies in the establishment and improvement of programs to identify and meet the educational needs of States.

(b) For the purpose of making grants under this title, there is hereby authorized to be appropriated the sum of $25,000,000 for the fiscal year ending June 30, 1966; but for the fiscal year ending June 30, 1967, and the three succeeding fiscal years, only such sums may be appropriated as the Congress may hereafter authorize by law.

APPORTIONMENT AMONG STATES

SEC. 502. (a) (1) From 85 per centum of the sums appropriated for carrying out this title for each fiscal year, the Commissioner shall reserve such amount, but not in excess of 2 per centum of such 85 per centum of such sums, as he may determine and shall apportion such amount among the Commonwealth of Puerto Rico, Guam, American Samoa, and the Virgin Islands according to their respective needs for assistance under this title. From the remainder of such 85 per centum of such sums the Commissioner shall apportion $100,000 to each State, and shall apportion to each State such part of the remainder of such 85 per centum of such sums as the number of public school pupils in the State bears to the number of public school pupils in all the States, as determined by the Commissioner on the basis of the most recent satisfactory data available to him. For purposes of this paragraph, the term 'State' does not include the Commonwealth of Puerto Rico, Guam, American Samoa, and the Virgin Islands.

(2) Fifteen per centum of the sums appropriated pursuant to section 501 for each fiscal year shall be reserved by the Commissioner for grants for special projects pursuant to section 505.

(b) (1) The amount apportioned to any State under paragraph (1) of subsection (a) for any fiscal year which the Commissioner determines will not be required for that year shall be available for reapportionment from time to time, on such dates during that year as the Commissioner max fix, to other States in proportion to the amounts

originally apportioned among those States under subsection (a) (1) for that year, but with the proportionate amount for any of the other States being reduced to the extent it exceeds the sum the Commissioner estimates that State needs and will be able to use for that year; and the total of these reductions shall be similarly reapportioned among the States whose proportionate amounts were not so reduced. Any amount reapportioned to a State under this subsection from funds appropriated pursuant to section 501 for any fiscal year shall be deemed part of the amount apportioned to it under subsection (a)(1) for that year.

(2) In accordance with regulations of the Commissioner any State may file with him a request that a specified portion of the amount apportioned to it under subsection (a) (1) be added to the amount apportioned to another State under that subsection for the purpose of meeting a portion of the Federal share (as defined in section 503 (b)) of the cost of carrying out one or more programs or activities under an approved application of that other State. If the Commissioner finds that the programs or activities with respect to which the request is made would meet needs of the State making the request and that use of the specified portion of the amount apportioned to that State, as requested by it, would assist in carrying out the purposes of this title, that portion shall be added to the amount apportioned to the other State under subsection (a) (1) to be used for the purpose referred to above. The Federal share of the total funds expended for such programs or activities shall be adjusted on the basis of the proportion of such total funds so expended by each participating State from the amounts originally apportioned to each such State.

GRANTS FROM APPORTIONED FUNDS

SEC. 503. (a) From the amount apportioned to any State for any fiscal year under section 502 the Commissioner may, upon approval of an application or applications therefor submitted to him by such State through the State educational agency, make a grant or grants to such agency equal to the Federal share of expenditures incurred by such agency for the planning of, and for programs for, the development, improvement, or expansion of activities promoting the purposes set forth in section 501 (a) and more particularly described in such application and for which such application is approved, such as

(1) educational planning on a statewide basis, including the identification of educational problems, issues, and needs in the State and the evaluation on a periodic or continuing basis of education programs in the State;

(2) providing support or services for the comprehensive and compatible recording, collecting, processing, analyzing, interpreting, storing, retrieving, and reporting of State and local educational data, including the use of automated data systems;

(3) dissemination or support for the dissemination of information relating to the condition, progress, and needs of education in the State;

(4) programs for conducting, sponsoring, or cooperating in educational research and demonstration programs and projects such as (A) establishing and maintaining curriculum research

and innovation centers to assist in locating and evaluating curriculum research findings, (B) discovering and testing new educational ideas (including new uses of printed and audio-visual media) and more effective educational practices, and putting into use those which show promise of success, and (C) studying ways to improve the legal and organizational structure for education and the management and administration of education in the State; (5) publication and distribution, or support for the publication and distribution, of curricular materials collected and developed at curriculum research centers and elsewhere;

(6) programs to improve the quality of teacher preparation, including student-teaching arrangements, in cooperation with institutions of higher education and local educational agencies;

(7) studies or support for studies concerning the financing of public education in the State;

(8) support for statewide programs designed to measure the educational achievement of pupils;

(9) training and otherwise developing the compentency of individuals who serve State or local educational agencies and provide leadership, administrative, or specialist services throughout the State, or throughout the area served by a local educational agency, through the initiation, improvement, and expansion of activities such as (A) sabbatical leave programs, (B) fellowships and traineeships (including educational expenses and the cost of travel) for State educational agency personnel to pursue graduate studies, and (C) conducting institutes, workshops, and conferences (including related costs of operation and payment of the expenses of participants); and

(10) providing local educational agencies and the schools of those agencies with consultative and technical assistance and services relating to academic subjects and to particular aspects of education such as the education of the handicapped, school building design and utilization, school social work, the utilization of modern instructional materials and equipment, transportation, educational administrative procedures, and school health, physical education, and recreation.

(b) (1) For the purposes of this section, the Federal share for any State shall be 100 per centum for fiscal years ending prior to July 1, 1967. Thereafter the Federal share for any State shall be 100 per centum less the State percentage, except that (A) the Federal share shall in no case be more than 66 per centum or less than 50 per centum, and (B) the Federal share for the Commonwealth of Puerto Rico, Guam, American Samoa, and the Virgin Islands shall be 66 per centum. The "State percentage" for any State shall be that percentage which bears the same ratio to 50 per centum as the per capita income of that State bears to the per capita income of all the States (excluding the Commonwealth of Puerto Rico, Guam, American Samoa, and the Virgin Islands).

(2) The Federal share for each State for the fiscal years beginning July 1, 1967, and July 1, 1968, shall be promulgated by the Commissioner between July 1 and August 31, 1966, and the Federal share for each State for the fiscal year beginning July 1, 1969, shall be promulgated by the Commissioner between July 1, and August 31, 1968.

Such Federal share shall be computed on the basis of the average of the per capita incomes of each State and of all the States (excluding the Commonwealth of Puerto Rico, Guam, American Samoa, and the Virgin Islands) for the three most recent consecutive years for which satisfactory data are available from the Department of Commerce.

APPROVAL OF APPLICATIONS FOR GRANTS FROM APPORTIONED FUNDS

SEC. 504. An application for a grant under section 503 may be approved by the Commissioner only upon his determination that

(a) each of the proposed projects, programs, and activities for which it is approved meets the requirements of section 503 (a) and will make a significant contribution to strengthening the leadership resources of the applicant or its ability to participate effectively in meeting the educational needs of the State;

(b) the application contains or is supported by adequate assurance that Federal funds made available under the approved application will be so used as to supplement, and to the extent practical, increase the amounts of State funds that would in the absence of such Federal funds be made available for projects and activities which meet the requirements of section 503 (a);

(c) the application sets forth 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 (including any such funds paid by the State to agencies, institutions, or organizations) under this title; and

(d) the application provides for making such reports, in such form and containing such information, as the Commissioner may require to carry out his functions under this title, and for keeping such records and for affording such access thereto as the Commissioner may find necessary to assure the correctness and verification of such reports.

SPECIAL PROJECT GRANTS

SEC. 505. Fifteen per centum of the sums appropriated pursuant to section 501 for each fiscal year shall be used by the Commissioner to make grants to State educational agencies to pay part of the cost of experimental projects for developing State leadership or for the establishment of special services which, in the judgment of the Commissioner, hold promise of making a substantial contribution to the solution of problems common to the State educational agencies of all or several States.

PAYMENTS

SEC. 506. Payments pursuant to grants under this title may be made in installments, and in advance or by way of reimbursement, with necessary adjustments on account of overpayments or underpayments, as the Commissioner may determine.

INTERCHANGE OF PERSONNEL WITH STATES

SEC. 507. (a) For the purposes of this section, the term "State" means a State or any agency of a State engaged in activities in the field of education, but it does not include a local educational agency; and the term "Office" means the Office of Education.