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(B) The second sentence of section 105(f) (1) of such Act is amended by inserting immediately after "State advisory councils" the following: "from amounts allotted to such advisory councils in accordance with the method for allotment contained in section 103 (a) (2),”.

(7) Section 106 (a) (8) of such Act is amended by inserting ")" after "under subpart 5 of this part".

(8) Section 107(a) (1) (as in effect on October 12, 1976, pursuant to section 204 (a) (2) (A) of the Education Amendments of 1976) of such Act is amended by inserting immediately before the period at the end of the first sentence thereof "in which the plan is submitted", and in the fifth sentence thereof by striking out "(a)" and inserting in lieu thereof "(A)", by striking out "(b)" and inserting in lieu thereof "(B)", and by striking out "(c)" and inserting in lieu thereof "(C)".

((9) Sections 110(a) and 110(b) (1) of such Act are amended to read as follows: "SEC. 110. (a) For each fiscal year, at least 10 per centum of each States allotment under section 103 from appropriations made under section 102(a) shall be used to pay up to 50 per centum of the cost of programs, services, and activities under subpart 2 and of program improvement and supportive services under subpart 3 for handicapped persons.

"(b) (1) For each fiscal year, at least 20 per centum of each State's allotment under section 103 from appropriations made under section 102(a) shall be used to pay up to 50 per centum of the cost of programs, services, and activities under subpart 2 and of program improvement and supportive services under subpart 3 for disadvantaged persons (other than handicapped persons), for persons who have limited English-speaking ability, and for providing stipends authorized under section 120 (b) (1) (G).”.

(11) Section 110(e) of such Act is amended to read as follows:

"(c) For each fiscal year, at least 15 per centum of each State's allotment under section 103 from appropriations made under section 102(a) shall be used to pay up to 50 per centum of the cost of programs, services, and activities under subpart 2 and of program improvement and supportive services under subpart 3 for (1) persons who have completed or left high school and who are enrolled in organized programs of study for which credit is given toward an associate or other degree, but which programs are not designed as baccalaureate or higher degree programs, and (2) persons who have already entered the labor market, or are unemployed, or who have completed or left high school and who are not described in paragraph (1).”.

(12) Section 111(a)(1) of such Act is amended by striking out "equal to" and by inserting in lieu thereof "not to exceed".

(13) Section 111(a) (1) (B) (as in effect on October 1, 1977) of such Act is amended by striking out "section" and inserting in lieu thereof "sections" and by striking out "vocational education programs" and by inserting in lieu thereof "programs, services, and activities under subpart 2 and program improvement and supportive devices under subpart 3".

(14) Section 111(a) (1) (C) (as in effect on October 1, 1977) of such Act is amended by striking out "133(b) and 140" and inserting in lieu thereof "132(b), and 140(b) (2)".

(15) Section 111(a) (2) (A) of such Act is amended to read as follows:

"(2) (A) In addition, the Commissioner shall pay, from each State's allotment under section 103 from appropriations made under section 102(a), an amount not to exceed the Federal share of the cost of State administration of such plans.".

'(16) (A) Section 120 (b) (1) of such Act is amended by striking out "and" at the end of clause (L), by striking out the period at the end of clause (M) and inserting in lieu thereof "; and”, and by adding at the end thereof the following new clauses:

"(N) provision of vocational training through arrangements with private vocational training institutions where such private institutions can make a significant contribution to attaining the objectives of the State plan, and can provide substantially equivalent training at a lesser cost, or can provide equipment or services not available in public institutions; and

"(O) subject to the provisions of section 111, State administration of the five-year plan submitted pursuant to section 107 and of the annual program plan submitted pursuant to section 108, except that not more than 80 per centum of the amount of payments determined under section 111 for such purposes shall be made from grants under this subpart."

(B) Section 130(b) of such Act is amended by striking out "and" after paragraph (5), by striking out the period at the end of such section and inserting in lieu thereof "; and”, and by inserting immediately by below paragraprh (6) of such section the following new paragraph:

"(7) Subject to the provisions of section 111, State administration of the five-year plan submitted pursuant to section 107 and of the annual program plan submitted pursuant to section 108, except that not more than 20 per centum of the amount of payments determined under section 111 for such purposes shall be made from grants under this subpart.".

(17) That portion of section 132(a) of such Act preceding paragraph (1) is amended to read as follows:

SEC. 132. (a) Funds available to the States under section 130(a) may be used for contracts by State research coordination units pursuant to comprehensive plans of program improvement for the support of exemplary and innovative programs, including-".

(18) That portion of section 133 (a) of such Act preceding paragraph (1) is amended to read as follows:

SEC. 133. (a) Funds available to the States under section 130(a) may be used for contracts by State research coordination units pursuant to comprehensive plans of program improvement for the support of curriculum development projects, including-".

(19) Section 134(a) of such Act is amended by striking out "shall include" and by inserting in lieu thereof "shall include one or more of the following activities". (20) Section 150(b) of such Act is amended by striking out "provision of equipment, and State administration and leadership" and by inserting in lieu thereof "and provision of equipment".

(21) Section 161(a)(1) of such Act is amended by striking out "section 112" and by inserting in lieu thereof "section 112(b)”.

(22) Section 161(a) (3) (A) of such Act is amended by striking out "October 1, 1977" and by inserting in lieu thereof "October 1, 1978".

(23) Section 161(b) (1) (as in effect on October 12, 1976, pursuant to section 204 (a) (2) (B) of the Education Amendments of 1976) of such Act is amended by inserting immediately after "in effect" in the second sentence the following: "on the date of the enactment of the Education Amendments of 1976 and", and in clause (B) by striking out "September 30, 1977" and by inserting in lieu thereof "September 30, 1978".

(24) Section 162 (c) (as in effect on October 1, 1977) of such Act is amended by striking out "paragraph" in the first sentence thereof and inserting in lieu thereof "subsection", and by adding at the end of such section the following new sentence: "The National Council may accept gifts if the acceptance of such gifts will better enable it to carry out its functions under this section.".

(25) Sections 191 and 192 (as in effect on October 1, 1977) of such Act are each amended by striking out "part" and inserting in lieu thereof "subpart", and such section 191 is further amended by striking out “August 2" and inserting in lieu thereof "August 12".

(26) Section 195 (7) of such Act is amended by striking out "crippled and inserting in lieu thereof "orthopedically impaired" and by inserting immediately after "impaired children" the following: or children with specific learning disabilities,".

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(27) Section 195 (15) of such Act is amended by striking out "designating" and inserting in lieu thereof “designing”.

(28) Section 203 of the Education Amendments of 1976 is amended by adding at the end thereof the following:

"(c) (1) Section 104 of the Vocational Education Amendments of 1968 is amended by adding before the period at the end thereof the following: '(as such Act will be in effect on October 1, 1977)'.

"(2) The amendment made by this section shall be effective on and after October 1, 1977.".

(29) Section 523 (b) (2) of the Education Amendments of 1976 is amended by striking out "September 30, 1979" and by inserting in lieu thereof "September 30, 1980" and by striking out "September 30, 1980" and by inserting in lieu thereof "September 30, 1981". Such section 523 (b) (2) is further amended by striking out everything which appears after "under this section".

(30) (A) Section 523 (b) (3) of the Education Amendments of 1976 is amended by striking "section" at the end of the first sentence and by inserting in lieu thereof "subsection concerning the National Institute of Education", and the

second sentence of such section is amended by striking "October 1, 1979" and by inserting in lieu thereof "October 1, 1981".

(B) The amendments made by paragraph (1) shall take effect on and after October 1, 1977.

Chairman PERKINS. The subcommittee will come to order.

The Subcommittee on Elementary, Secondary, and Vocational Education is holding a hearing today on the need for miscellaneous and technical amendments to the Vocational Education Act Amendments of 1976. Specifically, we will concentrate on the question of how much in Federal funds ought to be used for support of State and local vocational education program administration.

The new vocational amendments, which will go into effect October 1, 1977, limit State administration to $25 million a year and bar the use of Federal funds for local administration. Since these amendments were passed last year, State and local people have indicated to us that more Federal funds than this will be necessary for these purposes.

We have representatives of the American Vocational Association here today who will testify to this need.

I introduced a technical amendments bill, H.R. 3437, on February 9 with the cosponsorship of Mr. Quie. This bill would place State administration in the block grant for vocational education and therefore would permit more than $25 million to be used for that purpose. This bill does not deal with the question of local administration.

On the question of local administration, Congressman Quie and I feel it is necessary to hear the testimony today before we endorse any particular course of action. The reason for our reluctance is that the data from a survey conducted by the American Vocational Association indicates that the use of Federal funds for local administration varies greatly from State to State. Eleven States use no Federal money at all for local administration, while 10 States take 25 percent or more of their local administrative funds from Federal funds.

The survey also shows, however, that the States use seven times as much State and local money for local administration as they do Federal money. Thirty-one States use a greater percentage of their total State and local vocational expenditures for local administration than of their total Federal vocational expenditures.

I would like to insert into the record at this point a set of tables drawn up by the Subcommittee staff on the percentage of Federal funds the States use for State and local administration in vocational education. The tables are based on data submitted to the Subcommittee by the American Vocational Association prior to this hearing, but have been modified to reflect updated figures submitted by two States.

TABLE 1.-EXPENDITURES FOR STATE ADMINISTRATION IN VOCATIONAL EDUCATION,
FISCAL YEAR 1976

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TABLE II.-EXPENDITURES FOR STATE ADMINISTRATION IN VOCATIONAL EDUCATION FISCAL YEAR 1976

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TABLE III.-EXPENDITURES FOR LOCAL ADMINISTRATION IN VOCATIONAL EDUCATION-FISCAL YEAR 1976

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