was derived from any such provision for that year. Any amount for a fiscal year so reallotted to a State under this subsection shall be deemed part of its allotment derived from the same provision of subsection (b) for such year.

(f) The amounts appropriated and allocated pursuant to this Act shall be paid to the States at such intervals and in such installments as the Secretary may determine, taking account of the objective that the time elapsing between the transfer of funds from the United States Treasury and the disbursement thereof by States shall be minimized.

(g) For purposes of this Act, the Secretary shall determine average daily attendance, average per pupil expenditure, and numbers of children, and in doing so he shall use the most recent satisfactory data available to him, referrable with respect to data used for each purpose to the same time period for all jurisdictions. All determinations and computations by the Secretary under this section shall be final and conclusive.

DISTRIBUTION OF SHARED REVENUES WITHIN EACH STATE

SEC. 5. (a) Each State shall pay to each of its local educational agencies for a fiscal year an amount equal to the sum allotted to such State pursuant to section 4(a) for such year on account of the number of children in average daily attendance who resided on Federal property in the school district of such agency. (b) (1) Except for any sums retained, from the amount allotted to it for any fiscal year by application of the provisions of section 4(b) (1), by a State for meeting, in accordance with the provisions of section (4c) (1), the special educational needs of neglected or delinquent children described in section 4(c) (1) (C), such State shall also pay to each of its local educational agencies for a fiscal year an amount equal to the sum allotted to it pursuant to section 4(b) for such year on account of the number of children in the school district of such agency who are in low-income families, but only if (A) such amount is at least $10,000, and (B) the services provided in each of the schools of such agency with funds other than funds received under this Act have been determined, by the State agency (designated pursuant to section 8(a)) in accordance with such criteria as the Secretary may prescribe, to be comparable with the services so provided in all of the other schools of such local educational agency.

(2) Any portion of an allotment which is not, but would be except for clause (A) or (B) of paragraph (1), paid to a local educational agency shall be paid by such State, in accordance with its plan developed under section 8(b), to other local educational agencies within such State to which funds are required to be paid under paragraph (1) for use in accordance with the provisions of section 4(c) (1), except that no such other agency shall be paid more for any fiscal year pursuant to this subsection than 200 per centum of the amount required to be paid to it under paragraph (1) for such year.

(3) If no local educational agency within such State which would otherwise be paid funds under this subsection has been so determined, by such State agency, to provide such comparable services, the amount allotted to such State by application of the provisions of section 4(b) (1) shall be reallotted to other States in proportion to the amounts originally alloted to such other States by application of such provision. Any portion of an allotment which is not, but would be except for paragraph (2), paid to local educational agencies within a State, shall be reallotted to other States in proportion to the amounts originally allotted to such other States by application of the provisions of section 4 (b) (1). No State shall be reallotted for any fiscal year pursuant to this subsection more than 200 per centum of the amount originally allotted to such State for such year by application of the provisions of section 4 (b). Any amount reallotted to a State pursuant to this subsection for any fiscal year shall be deemed to be part of its allotment for such fiscal year derived from application of the provisions of section 4(b) (1).

(c) The remainder of each State's allotment shall be available

(1) for use, in accordance with the provisions of sections 4 and 6 and the plan developed pursuant to section 8(b), by the State agency designated pursuant to section 8(a), including use by such agency for meeting the special educational needs of handicapped children for whose education such agency, or any other State agency within such State, rather than a local educational agency, is directly responsible; and

(2) for distribution, for use by them in accordance with the provisions of sections 4 and 6 and such plan, among the local educational agencies of

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, 76-080-72-2

a petition for review of the Secretary's action. The petitioner shall forthwith 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

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.