under the Second Liberty Bond Act, as amended, and the purposes for which securities may be issued under such Act, as amended, are extended to include any purchases of such notes and obligations. The Secretary of the Treasury may at any time sell any of the notes or other obligations acquired by him under this paragraph. All redemptions, purchases, and sales by the Secretary of the Treasury of such notes or other obligations shall be treated as public debt transactions of the United States. Sums borrowed under this paragraph shall be deposited in the Fund and redemption of such notes and obligations shall be made by the Commissioner from such Fund.

LEGAL POWERS AND RESPONSIBILITIES

SEC. 308. (a) In the performance of, and with respect to, the functions, powers, and duties vested in him by this title, the Commissioner may—

(1) prescribe such regulations as may be necessary to carry out the purposes of this title;

(2) sue and be sued in any court of record of a State having general jurisdiction or in any district court of the United States, and such district courts shall have jurisdiction of civil actions arising under this title without regard to the amount in controversy, and any action instituted under this subsection by or against the Commissioner shall survive notwithstanding any change in the person occupying the office of Commissioner or any vacancy in such office; but no attachment, injunction, garnishment, or other similar process, mesne or final, shall be issued against the Commissioner or property under his control, and nothing herein shall be construed to except litigation arising out of activities under this title from the application of sections 507 (b) and 2679 of title 28 of the United States Code and of section 367 of the Revised Statutes (5 U.S.C. 316);

(3) include in any contract for insurance such terms, conditions, and covenants relating to repayment of principal and payment of interest, relating to his obligations and rights and to those of eligible lenders, and borrowers in case of default, and relating to other matters as the Commissioner determines to be necessary to assure that the purposes of this title will be achieved; and any term, condition, and covenant made pursuant to this clause or any other provision of this title may be modified by the Commissioner if he determines such modification is necessary to protect the financial interest of the United States:

(4) subject to the specific limitations in this title, consent to the modification with respect to rate of interest, time of payment of any installment of principal and interest or any portion thereof, or any other provision, of any note or other instrument evidencing a loan which has been insured under the title;

(5) enforce, pay, or compromise any claim on, or arising because of, any such insurance; and

(6) enforce, pay, compromise, waive, or release any right, title, claim, lien, or demand, however acquired, including any equity or any right of redemption.

(b) The Commissioner shall, with respect to the financial operations arising by reason of this title

(1) prepare annually and submit a budget program as provided for wholly owned Government corporations by the Government Corporation Control Act;

(2) maintain an integral set of accounts, which shall be audited annually by the General Accounting Office in accordance with principles and procedures applicable to commercial corporate transactions, as provided by section 105 of the Government Corporation Control Act with respect to insurance under this title, except that the transactions of the Commissioner, including the settlement of insurance claims, and transactions related thereto and vouchers approved by the Commissioner in connection with such transactions, shall be final and conclusive upon all accounting and other officers of the Government.

DEFINITIONS

SEC. 309. For the purpose of this title the terms "Commissioner" and "area vocational education program" have the meanings provided in section 108 of title I of this Act.

[Committee Print]

June 3, 1963

AMENDMENT TO H.R. 4955 ADOPTED BY GENERAL SUBCOMMITTEE ON EDUCATION

Strike out all after the enacting clause and insert:

Declaration of purpose

Section 1. It is the purpose of this Act to authorize Federal grants to States to assist them to maintain, extend, and improve existing programs of vocational education, and to develop new programs of vocational education so that persons of all ages in all communities of the State-those in high school, those who have completed or discontinued their formal education and are preparing to enter the labor market, those who have already entered the labor market but need to upgrade their skills or learn new ones, and those with special educational handicaps will have ready access to vocational training or retraining which is of high quality, which is realistic in the light of actual or anticipated opportunities for gainful employment, and which is suited to their needs, interests, and ability to benefit from such training.

Authorization of appropriations

Sec. 2. There are hereby authorized to be appropriated for the fiscal year ending June 30, 1964, $45,000,000, for the fiscal year ending June 30, 1965, $90,000,000 for the fiscal year ending June 30, 1966, $135,000,000, and for the fiscal year ending June 30, 1967, and each fiscal year thereafter, $180,000,000, for the purpose of making grants to States as provided in this Act.

Allotments to States

Sec. 3. (a) Ninety-five per centum of the sums appropriated pursuant to section 2 shall be allotted among the States on the basis of the number of persons in the various age groups needing vocational education and the per capita income in the respective States as follows: The Commissioner shall allot to each State for each fiscal year—

(1) an amount which bears the same ratio to 50 per centum of the sums 80 appropriated for such year, as the product of the population aged fifteen to nineteen, inclusive, in the State in the preceding fiscal year and the State's allotment ratio bears to the sum of the corresponding products for all the States; plus

(2) an amount which bears the same ratio to 20 per centum of the sums so appropriated for such year, as the product of the population aged twenty to twenty-four, inclusive, in the State in the preceding fiscal year and the State's allotment ratio bears to the sum of the corresponding products for all the States; plus

(3) an amount which bears the same ratio to 15 per centum of the sums 80 appropriated for such year, as the product of the population aged twentyfive to sixty-five, inclusive, in the State in the preceding fiscal year and the State's allotment ratio bears to the sum of the corresponding products for all the States; plus

(4) an amount which bears the same ratio to 10 per centum of the sums so appropriated for such year, as the sum of the amounts allotted to the State under paragraphs (1), (2), and (3) for such year bears to the sum of the amounts allotted to all the States under paragraphs (1), (2), and (3) for such year.

(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 for carrying out the State's plan approved under section 5 shall be available for reallotment from time to time, on such dates during such year as the Commis

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sioner may fix, to other States in proportion to the original allotments to such States under such subsection for such year, but with such proportionate amount for any of such other States being reduced to the extent it exceeds the sum the Sommissioner estimates such State needs and will be able to use under the approved plan of such State for such year and the total of such reductions shall be similarly reallotted among the States and not suffering such a reduction. Any amount reallotted to a State under this subsection during such year shall be deemed part of its allotment under subsection (a) for such year.

(c) (1) The "allotment ratio" for any State shall be 1.00 less the product of (A) .50 and (B) the quotient obtained by dividing the per capita income for the State by the per capita income for all the States (exclusive of Puerto Rico, Guam, American Samoa, and the Virgin Islands), except that (i) the allotment ratio shall in no case be less than 25 or more than .75, (ii) the allotment ratio for Puerto Rico, Guam, American Samoa, and the Virgin Islands shall be .75, and (iii) the allotment ratio of any State shall be .50 for any fiscal year if the Commissioner finds that the cost of education in such State exceeds the median of such costs in all the States by a factor of 2 or more as determined by him on the basis of an index of the average per pupil cost of constructing minimum school facilities in the States as determined for such fiscal year under section 15(6) of the Act of September 23, 1950, as amended (20 U.S.C. 645) (relating to Federal school construction assistance in federally affected areas), or, in the Commissioner's discretion, on the basis of such index and such other statistics and data as the Commissioner shall deem adequate and appropriate.

(2) The allotment ratios shall be promulgated by the Commissioner for each fiscal year, between July 1 and September 30 of the preceding fiscal year, except that for the fiscal year ending June 30, 1964, such allotment ratios shall be promulgated as soon as possible after the enactment of this Act. Allotment ratios shall be computed on the basis of the average of the per capita incomes for a State and for all the States (exclusive of Puerto Rico, Guam, American Samoa, and the Virgin Islands) for the three most recent consecutive fiscal years for which satisfactory data is available from the Department of Commerce. (3) The term "per capita income" for a State or for all the States (exclusive of Puerto Rico, Guam, American Samoa, and the Virgin Islands) for any fiscal year, means the total personal income for such State, and for all such States, respectively, in the calendar year ending in such fiscal year, divided by the population of such State, and of all such States, respectively, in such fiscal year. (4) The total population and the population of particular age groups of a State or of all the States shall be determined by the Commissioner on the basis of the latest available estimates furnished by the Department of Commerce.

Uses of Federal Funds

Sec. 4. (a) Except as otherwise provided in subsection (b), a State's allotment under section 3 may be used, in accordance with its approved State plan, for any or all of the following purposes:

(1) Vocational education for persons attending high school;

(2) Vocational education for persons who have completed or left high school and who are available for full-time study in preparation for entering the labor market;

(3) Vocational education for persons (other than persons who are receiving training allowances under the Manpower Development and Training Act of 1962 (Public Law 87-415), the Area Redevelopment Act (Public Law 87-27), or the Trade Expansion Act of 1962 (Public Law 87-794) who have already entered the labor market and who need training or retraining to achieve stability or advancement in employment;

(4) Vocational education for persons who have academic, socioeconomic, or other handicaps that prevent them from succeeding in the regular vocational education program;

(5) Construction of area vocational education school facilities;

(6) Ancillary services and activities to assure quality in all vocational education programs, such as inservice teacher training and supervision, program evaluation, special demonstration and experimental programs, development of instructional materials, and State administration and leadership, including periodic evaluation of State and local vocational education programs and services in light of information regarding current and pro

(b) At least 25 per centum of each State's allotment may be used only for the purposes set forth in paragraph (2) or (5), or both, of a subsection (a), and at least 3 per centum of each State's allotment may be used only for the purposes set forth in paragraph (6) of subsection (a), except that the Commissioner may, upon request of a State, permit such State to use a smaller percentage of its allotment for any year for the purposes specified above if he determines that such smaller percentage will adequately meet such purposes in such State.

(c) Five per centum of the sums appropriated pursuant to section 2 for each fiscal year shall be used by the Commissioner to make grants to State Boards, or with the approval of the appropriate State Board, to local education agencies, and to colleges, universities, and other public or nonprofit private agencies or institutions, to pay part of the cost of research, experimental, developmental, or pilot programs developed by such Boards, agencies, or institutions and designed to meet the special vocational education needs of youths, particularly youths in economically depressed communities, who have academic, socioconomic, or other handicaps that prevent them from succeeding in the regular vocational education programs.

State Plans

Sec. 5. (a) A State which desires to receive its allotments of Federal funds under this Act shall submit through its State Board to the Commissioner a State plan, in such detail as the Commissioner deems necessary, which—

(1) designates the State Board as the sole agency for administration of the State plan, or for supervision of the administration thereof by local educational agencies; and, if such State Board does not include as members persons familiar with the vocational education needs and objectives of management and labor in the State, provides for the designation or creation of a State advisory council which shall include such persons, to consult with the State Board in carrying out the State plan;

(2) sets forth the policies and procedures to be followed by the State in allocating each such allotment among the various uses set forth in paragraphs (1), (2), (3), (4), (5), and (6) of section 4(a), and in allocating Federal funds to local educational agencies in the State, which policies and procedures insure that due consideration will be given to the results of periodic evaluations of State and local vocational education programs and services in light of information regarding current and projected manpower needs and job opportunities, and to the relative vocational education needs of all groups in all communities in the State, and that Federal funds made available under this Act will be so used as to supplement, and, to the extent practical, increase the amounts of State or local funds that would in the absence of such Federal funds be made available for the uses set forth in section 4a, and in no case supplant such State or local funds;

(3) provides minimum qualifications for teachers, teacher-trainers, supervisors, directors and others having responsibilities under the State plan;

(4) provides for entering into cooperative arrangements with the system of public employment offices in the States, approved by the State Board and by the State head of such system, looking toward such offices making available to the State Board and local educational agencies occupational information regarding reasonable prospects of employment in the community and elsewhere, and toward consideration of such information by such Board and agencies in providing vocational guidance and counseling to students and prospective students and in determining the occupations for which persons are to be trained; and looking toward guidance and counseling personnel of the State Board and local educational agencies making available to public employment offices information regarding the occupational qualifications of persons leaving or completing vocational education courses or schools, and toward consideration of such information by such offices in the occupational guidance and placement of such persons;

(5) sets forth procedures for 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 such funds paid by the State to local educational agencies) under this Act;

(6) provides assurance that the requirements of section 7 will be complied with on all construction projects in the State assisted under this part; and

approved by the State board administering a supplementary State plan approved under section 105.

(3) The term "area vocational education program" means a program consisting of one or more courses, conducted under public supervision and control, which is designed to fit for useful work individuals who have completed junior or senior high school, or who are sixteen years of age or older and have dropped out of school before completion of high school and are enrolled for study in preparation for entering the labor market or for improving their occupational competencies, and who are residents of the State or an area thereof, including two or more high school districts, designated and approved by the State board.

(4) The term "school facilities" means classrooms and related facilities (including initial equipment) and interests in land (including site, grading, and improvement) on which such facilities are constructed or which are used for demonstration or laboratory practice. Such term shall not include any facility intended primarily for events for which admission is to be charged to the general public.

(5) The term “Commissioner" means the Commissioner of Education.

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

(7) The term "State board" means the State board designated or created pursuant to section 5 of the Smith-Hughes Act (that is, the Act approved February 23, 1917 (39 Stat. 929)).

(8) The term "supplementary State plan" means such supplement to the State plan required by section 8 of the Smith-Hughes Act as may be required by the Commissioner under the provisions of this title.

(9) The term "local educational agency" means a board of education or other legally constituted local school authority having administrative control and direction of the public vocational education programs in a city, county, township, school district, or political subdivision in a State. This does not exclude State operated educational institutions or programs.

(10) The term "high school" does not include any grade beyond grade 12. (11) The term "Vocational Education Act of 1946" means the Vocational Education Act of 1946, as amended (20 U.S.C. 15i-15m, 150-15q, 15aa-15jj, 15aaa-15ggg).

(12) The term "supplementary vocational education Acts" means section 1 of the Act of March 3, 1931 (20 U.S.C. 30) (relating to vocational education in Puerto Rico), the Act of March 18, 1950 (20 U.S.C. 31-33) (relating to vocational education in the Virgin Islands), and section 9 of the Act of August 1, 1956 (20 U.S.C.34) (relating to vocational education in Guam).

FEDERAL CONTROL OF EDUCATION PROHIBITED

SEC. 110. Nothing contained in this title shall be construed to authorize any department, agency, officer, or employee of the United States to exercise any direction, supervision, or control over the curriculum, program of instruction, administration, or personnel of any educational institution or school system.

TITLE II-WORK ASSISTANCE FOR STUDENTS ENROLLED IN AREA VOCATIONAL EDUCATIONAL PROGRAM

DECLARATION OF PURPOSE

SEC. 201. It is the purpose of this title to authorize Federal grants to States to assist in providing part-time employment for students enrolled in area vocational education programs, who are in need of earnings from such employment in order to pursue vocational courses to fit them for useful work.

AUTHORIZATION OF APPROPRIATIONS

SEC. 202. There are hereby authorized to be appropriated for the fiscal year ending June 30, 1964, $1,000,000, and for each fiscal year thereafter such sums as may be necessary for the purpose of making allotments to States and payments as