State under clauses (1), (2), and (3) for such year bears to the sum of the amount allotted to all the States under clauses (1), (2), and (3) for such year.

(b) The amount of any State's allotment under subsection (a) for any fiscal year which is less than $20,000 shall be increased to that amount, the total of the increases thereby required being derived by proportionately reducing the allotments to each of the remaining States under such subsection, but with such adjustments as may be necessary to prevent the allotment of any of such remaining States from being thereby reduced to less than that amount.

(c) 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 505 shall be available for reallotment from time to time, on such dates during such year as the Commissioner 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 Commissioner 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 not suffering such a reduction. Any amount reallotted to a State under this subsection during such year shall be deemed part of its allotment for such year.

(d) (1) The "allotment ratio" for any State shall be one less the product of (A) 0.50 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 0.25 or more than 0.75, (ii) the allotment ratio for Puerto Rico, Guam, American Samoa, and the Virgin Islands shall be 0.75, and (iii) the allotment ratio of any State shall be 0.50 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 two 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 the Vocational Education Act of 1963. Allotment ratios shall be computed on the basis of the average of the per capita incomes for a State and for all 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. 504. (a) Except as otherwise provided in subsection (b), a State's allotment under section 503 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 high school or left the full-time 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, socio-economic, or other handicaps that prevent them from succeeding in the regular vocational education program;

(5) construction of area vocational educational school facilities;

(6) ancillary services and activities to assure quality in all vocational education programs, such as teacher training and supervision, program evaluation, special demonstration and experiemental 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 projected manpower needs and job opportunities.

(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 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 502 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, socioeconomic, or other handicaps that prevent them from succeeding in the regular voational education programs.

STATE PLANS

SEC. 505. (a) A State which desires to receive its allotments of Federal funds under this part shall submit through its State Board to the Commissioner a State plan, in such detail as the Commisioner 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 of management and labor in the State, and a person or persons representative of junior colleges, technical institutes, or other institutions of higher education which provide programs of technical or vocational training meeting the definition of vocational education in section 509(1) of this part, 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 504 (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 title 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 504 (a), 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 State, 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

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 title;

(6) provides assurance that the requirements of section 508 will be complied with on all construction projects in the State assisted under this part; and

(7) provides for making such reports in such form and containing such information as the Commissioner may reasonably require to carry out his functions under this part, 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.

(b) The Commissioner shall approve a State plan which fulfills the conditions specified in subsection (a), and shall not finally disapprove a State plan except after reasonable notice and opportunity for a hearing to the State board designated pursuant to paragraph (1) of such subsection.

(c) Whenever the Commissioner, after reasonable notice and opportunity for hearing to the State board administering a State plan approved under subsection (b), finds that

(1) the State plan has been so changed that it no longer complies with the provisions of subsection (a), or

(2) in the administration of the plan there is a failure to comply substantially with any such provision,

the Commissioner shall notify such State board that no further payments will be made to the State under this part (or, in his discretion, further payments to the State will be limited to programs under or portions of the State plan not affected by such failure) until he is satisfied that there will no longer be any failure to comply. Until he is so satisfied, the Commissioner shall make no further payments to such State under this part (or shall limit payments to programs under or portions of the State plan not affected by such failure).

(d) A State board administering a State plan approved under subsection (b) which is dissatisfied with a final action of the Commissioner under subsection (b) or (c) may appeal to the United States court of appeals for the circuit in which the State is located, by filing a petition with such court within sixty days after such final action. A copy of the petition shall be forthwith transmitted by the clerk of the court to the Commissioner, or any officer designated by him for that purpose. The Commisioner thereupon shall file in the court the record of the proceedings on which he based his action, as provided in section 2112 of title 28, United States Code. Upon the filing of such petition, the court shall have jurisdiction to affirm the action of the Commissioner or to set it aside, in whole or in part, temporarily or permanently, but until the filing of the record the Commissioner may modify or set aside his action. The findings of the Commissioner as to the facts, if supported by substantal evidence, shall be conclusive, but the court, for good cause shown, may remand the case to the Commissioner to take further evidence, and the Commissioner may thereupon make new or modified findings of fact and may modify his previous action, and shall file in the court the record of the further proceedings. Such new or modified findings of fact shall likewise be conclusive if supported by substantial evidence. The judgment of the court affirming or setting aside, in whole or in part, any action of the Commissioner shall be final, subject to review by the Supreme Court of the United States upon certiorari or certification as provided in section 1254 of title 28, United States Code. The commencement of proceedings under this subsection shall not, unless so specifically ordered by the court, operate as a stay of the Commissioner's action.

PAYMENTS TO STATES

SEC. 506. (a) Any amount paid to a State from its allotment under section 503 for the fiscal year ending June 30, 1964, shall be paid on condition that there shall be expanded for such year, in accordance with the State plan approved under section 505 or the State plan approved under the Vocational Education Act of 1946 and supplementary Vocational Education Acts, or both, an amount in State or local funds, or both, which at least equals the amount expended for vocational education during the fiscal year ending June 30, 1963, under the State plan approved under the Vocational Education Act of 1946 and supplementary Vocational Education Acts.

(b) Subject to the limitations in section 504(b), the portion of a State's allotment for the fiscal year ending June 30, 1965, and for each succeeding year, allocated under the approved State plan for each of the purposes set forth in paragraphs (1), (2), (3), (4), and (6) of Section 504 (a) shall be available for paying one-half of the State's expenditures under such plan for such year for such purposes.

(c) The portion of a State's allotment for any fiscal year allocated under the approved State plan for the purpose set forth in paragraph (5) of section 504(a) shall be available for paying not to exceed one-half of the cost of construction of each area vocational education school facility project.

(d) Payments of Federal funds allotted to a State under section 503 to States which have State plans approved under section 505 (as adjusted on account of overpayments or underpayments previously made) shall be made by the Commissioner in advance on the basis of such estimates, in such installments, and at such times, as may be reasonably required for expenditures by the States of the funds so allotted.

RESEARCH AND LEADERSHIP TRAINING CENTERS

SEC. 507. (a) The Commissioner is authorized to contract with one or more institutions of higher education for the establishment of a national center or centers to provide such advanced vocational educational leadership training, research in vocational education development, and related vocational educational services as he deems essential for the successful fulfillment of the Federal laws relating to vocational education.

(b) There are authorized to be appropriated such amounts as may be necessary to carry out the provisions of this section.

LABOR STANDARDS

SEC. 508. All laborers and mechanics employed by contractors or subcontractors on all construction projects assisted under this part (a) shall be paid wages at rates not less than those prevailing, as determined by the Secretary of Labor in accordance with the Davis-Bacon Act, as amended (40 U.S.C. 276a-276a-5), and (b) shall receive overtime compensation in accordance with and subject to the provisions of the Contract Work Hours Standards Act (Public Law 87-581). The Secretary of Labor shall have with respect to the labor standards specified in this section 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).

DEFINITIONS

SEC. 509. For the purpose of this part

(1) The term "vocational education" means vocational or technical training or retraining which is given in schools or classes (including field or laboratory work incidental thereto) under public supervision and control or under contract with a State board or local educational agency, and is conducted as part of a program designed to fit individuals for gainful employment as skilled workers or technicians in recognized occupations (including any program designed to fit individuals for gainful employment in business and office occupations, and any program designed to fit individuals for gainful employment which may be assisted by Federal funds under the Vocational Education Act of 1946 and supplementary Vocational Education Acts, but excluding any program to fit individuals

in regulations, to be generally considered professional or as requiring a baccalaureate or higher degree.) Such term includes vocational guidance and counseling in connection with such training, the training in vocational education of teachers, teacher-trainers, supervisors, and directors for such training, travel of students and vocational education personnel, and the acquisition and maintenance and repair of instructional supplies, teaching aids and equipment, but does not include the construction or initial equipment of buildings or the acquisition or rental of land.

(2) The term "area vocational education school" means (A) (a) a specialized high school used exclusively or principally for the provision of vocational education to persons who are available for full-time study in preparation for entering the labor market, or (b) a technical or vocational school used exclusively or principally for the provision of vocational education to persons who have completed or left high school and who are available for full-time study in preparation for entering the labor market, or (c) the vocational department or division of a junior college or community college or university providing vocational-technical education under the supervision of the State board and leading to immediate employment and not leading to a baccalaureate degree; and (B) any such school described in (A) (a), (b), or (c) of this paragraph which is available to all residents of the State or an area of the State designated and approved by the State board.

(3) The term "school facilities" means classrooms and related facilities (including initial equipment) and interests in land on which such facilities are constructed. Such term shall not include any facility intended primarily for events for which admission is to be charged to the general public.

(4) 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, ch. 114)) to secure to the State the benefits of that Act.

(5) The term "local educational agency" means a board of education or other legally constituted local school authority having administrative control and direction of public elementary or secondary schools in a city, county, township, school district, or political subdivision in a State, or any other public educational institution or agency having administrative control and direction of a vocational education program.

(6) The term "high school" does not include any grade beyond grade 12. (7) The term "Vocational Education Act of 1946" means titles I, II, and III of the Act of June 8, 1936, as amended (20 U.S.C. 15i-15m, 1500-15q, 15aa-15jj, 15aaa-15ggg).

(8) 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), section 9 of the Act of August 1, 1956 (20 U.S.C. 34) (relating to vocational education in Guam).

ADVISORY COMMITTEE ON VOCATIONAL EDUCATION

SEC. 510. (a) There is hereby established in the Office of Education an Advisory Committee on Vocational Education (hereinafter referred to as the "Advisory Committee"), consisting of the Commissioner, who shall be Chairman, one representative each of the Departments of Commerce, Agriculture, and Labor, and twelve members appointed, for staggered terms and without regard to the civil service laws, by the Commissioner with the approval of the Secretary of Health, Education, and Welfare. Such twelve members shall, to the extent possible, include persons familiar with the vocational education needs of management and labor (in equal numbers), persons familiar with the administration of State and local vocational education programs, other persons with special knowledge, experience or qualification with respect to vocational education, and persons representative of the general public, and not more than six of such members shall be professional educators. The Advisory Committee shall meet at the call of the Chairman but not less often than twice a year.

(b) The Advisory Committee shall advise the Commissioner in the preparation of general regulations and with respect to policy matters arising in the administration of this title, the Vocational Education Act of 1946, and Supplementary Vocational Education Acts, including policies and procedures governing the approval of State plans.