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such State on a basis reflecting the relative needs of each of such agencies for the types of assistance for which appropriations under this Act are

available; except that not more than 30 per centum of such allotment derived from application of the provisions of section 4(b)(2), relating to the presence within the State of children with a parent employed on Federal property or with a parent on active duty in the uniformed services, may be paid to local educational agencies not having any of such children in average daily attendance in their schools; and except that in determining the relative needs of each of such agencies for the types of assistance for which appropriations under this Act are available, funds paid to such agencies under subsection (b) of this section shall not be taken into account.

TRANSFERS AMONG PURPOSES Sec. 6. (a) Thirty per centum of that portion of each State's allotment which is available for the purposes described in clause (A), (B), or (C) of section 4(c)(3) may be made available for any of the other purposes described in section 4(c).

(b) The 30 per centum limitations in subsection (a) may be exceeded if the State demonstrates to the satisfaction of the Secretary that such action will achieve more effectively the purposes of this Act.

PARTICIPATION OF NONPUBLIC SCHOOL CHILDREN

SEC. 7. (a) The State agency designated pursuant to section 8(a) shall provide that

(1) except as provided in subsection (b), children enrolled in nonprofit private elementary or secondary schools will be given an opportunity to participate, on an equitable basis, in activities for which funds are made available under paragraph (1), or clause (A), (B), or (C) of paragraph (3), of section 4(c); and

(2) title to and control of funds received under this Act and other property derived therefrom will remain in one or more public agencies. (b) If the Secretary determines that provisions of State law prevent any State agency designated pursuant to section 8(a) from complying with subsection (a), the Secretary shall, if he finds that the State is otherwise eligible to participate in the program under this Act, permit such State to participate, but in such case he shall

(1) arrange, by contract or otherwise, for children enrolled in the nonprofit private elementary or secondary schools within such State to receive, on an equitable basis, services similar to those provided from the funds made available under paragraph (1) or clause (A), (B), or (C) of paragraph (3) of section 4(c) to public school children within such State; and

(2) pay the cost thereof out of that portion of the allotment to such State for carrying out each such paragraph or clause.

STATE ADMINISTRATION

SEC. 8. (a) The chief executive officer of each State which desires to participate in the program under this Act shall designate a State agency which shall be the single State agency for administration (or supervision of the administration) of such program in such State, except that this requirement may be waived in accordance with the provisions of section 204 of the Intergovernmental Cooperation Act of 1968 (42 U.S.C. 4214).

(b) The State agency designated pursuant to subsection (a) shall, for each fiscal year, develop and publish a plan for the distribution of funds available therefor under paragraph (2) of section 5(b) and under section 5(c), and for the expenditure of funds retained under paragraph (1) of section 5(b) and under section 5(c) (1) for use by such State agency or distributed under section 5(c) (2) for use by local educational agencies. Such plan shall be developed after consultation with the advisory council appointed pursuant to section 9, shall not finally be adopted by such State agency until a reasonable opportunity has been given to interested persons for comment thereon, and shall be made available to the Secretary.

(c) In administering the program under this Act, the State shall comply with the provisions of this Act and with regulations prescribed by the Secretary pursuant thereto.

STATE ADVISORY COUNCIL

SEC. 9. (a) The chief executive officer of each State which desires to participate in the program under this Act shall appoint an advisory council which shall be broadly representative of the education community in the State and of the public, including at least one person representative of the public elementary or secondary schools of the State; at least one person representative of the nonprofit private elementary or secondary schools of the State; at least one person representative of each of the various populations in the State which will be affected by the activities authorized under section 4; at least one person who has special competence in the planning and evaluation of education programs, and in the assessment of the effectiveness of activities authorized under section 4; and at least one person who has special competence in each of the educational areas described in section 4(c) (1), 4(c)(3)(A), and 4(c)(3)(B). (b) The State advisory council shall

(1) advise the State agency designated pursuant to section 8(a) on the preparation of, and on matters of general policy arising in the administration of, the plan developed under section 8(b);

(2) evaluate activities assisted under this Act;

(3) advise State or local officials who have responsibility for carrying out activities assisted under this Act with respect to the planning, evaluation, administration, and assessment of such activities; and

(4) prepare and submit to the Secretary not less often than annually a report of its activities, recommendations, and evaluations, together with such comments thereon as the State agency designated pursuant to section 8(a) and the chief executive officer of the State deem appropriate.

TREATMENT OF FEDERALLY CONNECTED CHILDREN

SEC. 10. The State agency designated pursuant to section 8(a) shall provide that children attending school within the State who reside with a parent on Federal property, who reisde with a parent employed on Federal property or have a parent who is a member of the uniformed services, will receive public elementary or secondary education on a basis comparable to that provided to other children in the State.

SPECIAL PAYMENTS BY THE SECRETARY

SEC. 11. (a) From the sums appropriated for any fiscal year pursuant to section 3(a), the Secretary may reserve not in excess of 10 per centum for use under this section.

(b) Funds reserved under subsection (a) shall be available to the Secreatry for making payments to any State to assist it in carrying out activities described in section 4 which are designed to further the achievement of national policy objectives in the field of education.

RECOVERY OF FUNDS

SEC. 12. (a) If the Secretary determines that a State has failed to comply substantially with the provisions of this Act, he shall

(1) refer the matter to the Attorney General of the United States with a recommendation that an appropriate civil action be instituted; or

(2) after reasonable notice and opportunity for hearing to the State agency designated pursuant to section 8(a), notify the State that if corrective action is not taken within sixty days from the date of such notification, revenues shared with it will be reduced in the same or succeeding fiscal year by an amount equal to the amount of funds which were not expended in accordance with the provisions of this Act; or

(3) take such other action as may be provided by law. (b) When a matter is referred to the Attorney General pursuant to subsection (a) (1) of this section, the Attorney General may bring civil action in any appropriate United States district court for such relief as may be appropriate, including injunctive relief.

(c) (1) Any State which receives notice, under subsection (a) (2), of reduction of revenues shared may, within sixty days after receiving such notice, file with the United States court of appeals for the circuit in which such State is located, or in the United States Court of Appeals for the District of Columbia,

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a petition for review of the Secretary's action. The petitioner shall forth with transmit copies of the petition to the Secretary and the Attorney General of the United States, who shall represent the Secretary in litigation.

(2) The Secretary shall file in the court the record of the proceeding on which he based his action, as provided in section 2112 of title 28, United States Code. No objection to the action of the Secretary shall be considered by the court unless such objection has been urged before the Secretary.

(3)The court shall have jurisdiction to affirm or modify the action of the Secretary or to set it aside in whole or in part. The findings of fact by the Secretary, if supported by substantial evidence on the record considered as a whole, shall be conclusive. The court may order additional evidence to be taken by the Secretary, and to be made part of the record. The Secretary may modify his findings of fact, or make new findings, by reason of the new evidence so taken and filed with the court, and he shall also file such modified or new findings, which findings with respect to questions of fact shall be conclusive if supported by substantial evidence on the record considered as a whole, and shall also file his recommendations, if any, for the modification or setting aside of his original action.

(4) Upon the filing of the record with the court, the jurisdiction of the court shall be exclusive and its judgment shall be final, except that the same shall be subject to review by the Supreme Court of the United States upon writ of certiorari or certification as provided in section 1254 of title 28, United States Code.

CIVIL RIGHTS

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SEC. 13. Revenues shared under this Act shall be considered as Federal financial assistance within the meaning of title VI of the Civil Rights Act of 1964 (42 U.S.C. 2000d).

ADVANCE FUNDING

SEC. 14. To the end of affording the responsible State, local, and Federal officers concerned adequate notice of available Federal financial assistance under this Act, appropriations for carrying out this Act are authorized to be included in the appropriation Act for the fiscal year preceding the fiscal year for which they are available for obligation. In order to effect a transition to this method of timing appropriation action, the preceding sentence shall apply notwithstanding that its initial application will result in the enactment in the same year (whether in the same appropriation Act or otherwise) of appropriations for each of two consecutive fiscal years.

LABOR STANDARDS

Sec. 15. All laborers and mechanics employed by contractors or subcontractors in any construction which is Federally assisted, which shall include revenues shared, under this Act 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 such labor standards, the authority and functions set forth in Reorganization Plan Numbered 14 of 1950 (15 F.R. 3176; 64 Stat. 1267) and section 2 of the Act of June 13, 1934, as amended (40 U.S.C. 276c).

ANNUAL REPORT

SEC. 16. The Secretary shall make an annual report to the President and the Congress pertaining to the effectiveness of assistance under this Act in meeting the educational needs of children and adults.

AVAILABILITY OF SHARED REVENUES FOR PAYING NON-FEDERAL SHARE UNDER OTHER

PROGRAMS

SEC. 17. Payments made pursuant to this Act shall be available, subject to the provisions of this Act, for paying the non-Federal share of expenditures under other Federal programs.

RECORDS, AUDITS, AND REPORTS

SEC. 18. (a) All revenues shared with States under this Act shall be property accounted for as Federal funds in the accounts of such recipients.

(b) In order to assure that revenues shared under this Act are used in accordance with its provisions, each State shall

(1) use such fiscal and accounting procedures as may be necessary to assure (A) proper accounting for payments received by it, and (B) proper disbursement of such amounts;

(2) provide to the Secretary, on reasonable notice, access, to, and the right to examine any books, documents, papers, or records as he may reasonably require; and

(3) make such reports to the Secretary as he may reasonably require.

INTERSTATE AGREEMENTS SEC. 19. In the event that cooperation or agreements between States is necessary in order to realize the full benefit of provisions of this Act, the consent of Congress is hereby given to such States to enter into such agreements.

DEFINITIONS SEC. 20. For purposes of this Act

(1) The term “adult education" means services or instruction below the college level for individuals (A) who have attained the age of 16, (B) who do not have a certificate of graduation from a school providing secondary education and who have not achieved an equivalent level of education, (C) who are not currently required to be enrolled in schools.

(2) The term “average per pupil expenditure in the United States" means the aggregate current expenditures of all local educational agencies in the United States for any fiscal year, plus any direct current expenditures by the States in which such agencies are located for the operation of such agencies during such year (without regard to the sources of funds from which either of such expenditures is made), divided by the aggregate number of children in average daily attendance to whom such agencies provided public education during such year.

(3) The term "construction" means the erection, acquisition, alteration, remodeling, or improvement of facilities, including the acquisition of land necessary therefor, and the cost of construction includes the cost of architect's fees.

(4) The term “current expenditures" means expenditures for public education, but not including expenditures for community services, capital outlay, and debt services, or any expenditures made from funds allotted under this Act.

(5) The term "elementary school" means a day or residential school which provides elementary education, as determined under State law.

(6) The term "Federal property" means real property which is owned by the United States or is leased by the United States, and which is not subject to taxation by any State or any political subdivision of a State or by the District of Columbia. Such term includes (A) real property held in trust by the United States for individual Indians or Indian tribes, and real property held by individual Indians or tribes which is subject to restrictions on alienation imposed by the United States, (B) for one year beyond the end of the fiscal year in which occurred the sale or transfer thereof by the United States, any property considered prior to such sale or transfer to be Federal property for the purposes of this Act, and (C) any school which is providing flight training to members of the Air Force under contractual arrangements with the Department of the Air Force at an airport which is owned by a State or political subdivision of a State. Such term also includes any interest in Federal property (as defined in the foregoing provisions of this paragraph) under an easement, lease, license, permit, or other arrangement, as well as any improvements of any nature (other than pipelines or utility lines) on such property even though such interests or improvements are subject to taxation by a State or political subdivision of a State or by the District of Columbia. Notwithstanding the foregoing provisions of this paragraph, such term does not include (D) any real property used for a labor supply center, labor home, or labor camp for migratory farmworkers, (E) any real property under the jurisdiction of the Post Office Department and used primarily for the provision of postal services, or (F) any low-rent housing project held under title II of the National Industrial Recovery Act, the Emergency Relief Appropriation Act of 1935, the United States Housing Act of 1937, the Act of June 28, 1940 (Public Law 871 of the Seventy-sixth Congress), or any law amendatory of or supplementary to any of such Acts.

(7) The term "handicapped children" means mentally retarded, hard of hearing, daf, speech impaired, visually handicapped, seriously emotionally disturbed, crippled, or other health impaired children who by reason thereof require special educational services.

(8) The term “local educational agency" means a public board of education or other public authority legally constituted within a State for either administrative control or direction of, or to perform a service function for, public elementary or secondary schools in a city, county, township, school di ict, or other political subdivision of a State, or such combination of school districts or counties as are recognized in a State as an administrative agency for its public elementary or secondary schools. Such term also includes any other public institution or agency having administrative control and direction of a public elementary or secondary school.

(9) The term “low-income families" shall be defined by the Secretary in accordance with such criteria as he may prescribe, which criteria shall take into account migratory children of migratory agricultural workers, neglected or delinquent children, and such matters as family size and urban-rural differences.

(10) The term “nonprofit”, as applied to a school, means a school 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.

(11) The term "revenues shared" means payments under this Act.

(12) The term "secondary school” means a day or residential school which provides secondary education, as determined under State law, except that it does not include any education provided beyond grade 12.

(13) The term “Secretary” means the Secretary of Health, Education, and Welfare.

(14) The term “State" includes, in addition to the several States, the Commonwealth of Puerto Rico, the District of Columbia, Guam, and the Virgin Islands.

(15) The term "supporting materials and services” means such materials and services as the purchase of school textbooks, library resources, and educational equipment; the provision of supplementary educational centers and services, of school pupil personnel services, of adult education, and of school meals; the training or retraining of teachers, teacher aides, and other school personnel ; the strengthening of State or local educational agency capabilities and of educational planning at the State or local level ; the support of the advisory council appointed under section 9; and the administration at the State level of the program carried out under this Act.

(16) The term “vocational education" includes vocational or technical training or retraining (including field or laboratory work and remedial or related academic and technical instruction incident thereto and work-study programs for students who need the earnings from work in order to commence or continue their education) conducted as part of a program designed to prepare individuals for gainful employment as semiskilled or skilled workers or technicians or subprofessionas in recognized occupations and in new and emerging occupations or to prepare individuals for enrollment in advanced technical programs, but excluding any program to prepare individuals for employment in occupations generaly considered professional or which require a baccalaureate or higher degree; and such term also includes vocational guidance and counseling in connection with such training or for the purpose of facilitating occupational choices; instruction related to the occupation or occupations for which the students are in training or instruction necessary for students to benefit from such training; job placement; and the training of persons engaged as, or preparing to become, teachers in a vocational education program or teachers, supervisors, or directors of such teachers.

REPEAL OF PROGRAMS REPLACED BY THIS ACT

SEC. 21. (a) Effective with respect to appropriations for fiscal years beginning after June 30, 1972, the following statutes and parts of statutes are repealed :

(1) title I of the Elementary and Secondary Education Act of 1965 (20 U.S.C. 251a-2411) ;

(2) title II of the Elementary and Secondary Education Act of 1965 (20 U.S.C. 821–827);

(3) title III of the Elementary and Secondary Education Act of 1965 (20 U.S.C. 841–848) ;

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