PUBLIC LAW 95-581, 92 STAT. 2478

95th CONGRESS, H.R. 10343. NOV. 2, 1978.
An Act To provide for recalculation of the retired pay of

individuals who served as

sergeant major of the Marine Corps before

December 16, 1967.

Be it enacted by the Senate and House of Representives of the United States of America in Congress assembled, That (a) the retired pay of any individual who served as sergeant major of the Marine Corps and who completed such service before December 16, 1967, shall be computed based upon a rate of basic pay of the sum of (1) the highest rate of basic pay to which such individual was entitled while so serving, and (2) $150.

(b) For the purpose of computing any adjustment under section 1401a of title 10, United States Code, in the retired pay of any individual whose retired pay is affected by subsection (a), the rate of basic pay provided under such subsection for the purpose of computing the retired pay of such individual shall be considered to have been the rate of basic pay applicable to such individual at the time of his retirement, and any adjustment under such section 1401a in the retired pay of such individual before September 30, 1978, shall be readjusted to reflect such rate of basic pay.

Sec. 2. (a) Any change in the retired pay of any individual by reason of the enactment of this Act shall be effective for months beginning after September 30, 1978.

(b) The enactment of this Act shall not reduce the retired pay of any individual.

Approved November 2, 1978.

LEGISLATIVE HISTORY:

HOUSE REPORT No. 95-857 (Comm. on Armed Services).

CONGRESSIONAL RECORD, Vol. 124 (1978):

Apr. 3, June 5, considered and passed House.

Oct. 14, considered and passed Senate.

WEEKLY COMPILATION OF PRESIDENTIAL DOCUMENTS, Vol. 14, No. 44:

Nov. 2, Presidential statement.

PUBLIC LAW 95-580, 92 STAT. 2475 ADVISORY TASK FORCE.

95TH CONGRESS, S. 1835 Nov. 2, 1978.
An Act To establish a Rural Transportation Advisory Task

Force, and for other purposes.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That the Congress hereby finds and declares that--,

(1) an adequate transportation system, made up of various modes of transportation, is essential to the overall success of the Nation's agriculture programs, to a sound program of rural development, and to the economic stability of the United States;

(2) the economical and efficient movement of agricultural commodities (including forest products) and agricultural inputs has been impeded by a shortage of railroad freight cars and motor trucks and by the deteriorated condition of many rail roadbeds throughout the United States;

(3) the economical and efficient movement of agricultural commodities (including forest products) and agricultural inputs is further threatened by the proposed abandonment by the railroad companies of thousands of miles of important railroad lines in the United States;

(4) the maintaining of an efficient and economical transportation system of agriculture and rural development in the United States has not received the priority attention which such system should have received; and

(5) the Secretary of Agriculture and the Secretary of Transportation have a responsibility to assume a more active role in representing the interests of agriculture and rural development in the United States in order to insure the availability of an adequate, efficient, and economical transportation system sufficient to meet the needs of agriculture and rural development in the United States.

Sec. 2. (a) There is hereby created in accordance with the provisions of this section a Rural Transportation Advisory Task Force (herein-after referred to as the " Task Force").

(b) The Secretary of Agriculture and the Secretary of Transportation (hereinafter referred to as the Secretaries) shall serve as Cochairmen of the Task force, which shall consist of fourteen members in addition to the Cochairmen, appointed by the secretaries on the following basis;

(1) one to be selected from a list of qualified individuals recommended by the Secretary of Agriculture;

(2) one to be selected from a list of qualified individuals recommended by the Secretary of Transportation;

(3) one to be selected from a list of qualified individuals recommend by the Chairman of the Interstate Commerce Commission;

(4) one to be selected from a list of qualified individuals recommended by the chariman of the Committee on Agriculture, Nutrition, and Forestry, United States Senate;

(5) one to be selected from a list of qualified individuals recommended by the chairman of the Committee on Agriculture, United States House of Representatives;

(6) three to be selected from a lists of qualified individuals recommended by carriers and associations of carriers, not to include more than one representative from each of the three transportation modes, rail, motor, and water;

(7) four to be selected from lists of qualified individuals recommended by the agricultural community, including agricultural shippers and associations of shippers; and

(8) two to be selected from lists of qualified individuals recommended by the academic community.

(c) Within fifteen days after the enactment of this section, the Secretaries shall solicit recommendations from the Chairman of the Interstate Commerce Commission; the chairman of the Committee on Agriculture, Nutrition, and Forestry, United States Senate; and the chairman of the Committee on Agriculture, United States House of Representatives. The Secretaries shall cause notice to be published in the Federal Register soliciting recommendations from which to make the selections required under subparts (6), (7), and (8) of subsection (b) of this section.

(d) Vacancies on the Task Force shall be filled in the manner prescribed for original selections.

(e) Members of the Task Force who are full-time officers or employees of the United States shall receive no additional pay on account of this service on the Task Force. While away from their homes or regular places of business in the performance of services for the Task Force, members of the Task Force shall be allowed travel expenses, including per diem in lieu of subsistence, in the same manner as persons employed intermittently in the Government service are allowed expenses under section 5703 of title 5, United States Code.

(f) The Task Force shall be dissolved forty-five days after the publication of the final report required under section 4 of this Act.

(g) The Secretaries shall furnish such supplies and clerical, administrative, and other support as they deem necessary to enable the Task Force to carry out its responsibilities.

Sec. 3. (a) The Task Force may compile and publish an initial report which, if published, shall include recommendations for determining the essential transportation needs of agriculture on a continuing basis, for establishing a national agricultural transportation policy, and for methods of identifying impediments to a railroad transportation system adequate to meet the essential needs of the agriculture industry of the United States. Such report, if published, shall also include, but shall not be limited to, maps which identify the locations in the several States which the Task Force, on the basis of the importance of such locations within agricultural producing, marketing, or consuming areas, determines should receive railroad service: Provided, That this directive is not to be construed as requiring comprehensive line-by-line analyses of all branch lines.

(b) The report authorized in section 3(a) shall, if published, be published not later than one hundred and eighty days after the date of enactment of this Act. The Task Force shall submit copies of such report, if published, to the Committee on Agriculture, Nutrition, and Forestry of the Senate and the Committee on Agriculture of the House of Representatives and shall provide for the widespread public dissemination of such report throughout the United States as soon as practicable after its publication.

(c) Within ninety days after the publication of the initial report described in section 3(a), or if such report is not published, within two hundred and seventy days after enactment of this Act, the Task Force shall announce dates for and hold public hearings at various locations throughout the United States, take such testimony and receive such evidence as it considers advisable for the purpose of obtaining the views of interested persons on such initial report or, if such report is not published, on recommendations for the final report required under this Act.

(d) Within one hundred and twenty days after the publication of the initial report described in section 3(a) or, if such report is not published, within three hundred days after enactment of this Act, the Task Force shall prepare and publish a summary of the testimony presented at such hearings, and shall provide for the widespread public dissemination of such summary as soon as possible following the publication thereof.

Sec. 4. (a) The Task Force shall prepare and publish, within four hundred and twenty days after the date of enactment of this Act, a final report including recommendations for determining the essential needs of agriculture on a continuing basis, for establishing a national agricultural transportation policy, for menthods of identifying impediments to a railroad transportation adequate to meet the essential needs of the agriculture industry, and containing specific recommendations for a railroad transportation system adequate to meet the essential needs of the agriculture industry of the United States. In preparing such final report, the Task Force shall take into consideration the testimony received at the public hearing required under this Act.

(b) Copies of such final report shall be submitted to the Committee on Agriculture, Nutrition, and Forestry of the Senate, the Committee on Agriculture of the House of Representatives, and the Chairman of the Interstate Commerce Commission. The Task Force shall provide for the widespread public dissemination of such final report.

Sec. 5. The provisions of this Act shall become effective October 1, 1978.

Approved November 2, 1978.

LEGISLATIVE HISTORY:

HOUSE REPORT No. 95-1600, accompanying H.R. 12917 (Comm. on Agriculture).

SENATE REPORT No. 95-923 (Comm. on Agriculture, Nutrition, and Forestry).

CONGRESSIONAL RECORD, Vol. 124(1978):

June 8, considered and passed Senate.

Oct. 3, 4, H.R. 12917 considered and passed House; passage vacated, and S. 1835, amended, passed in lieu.

Oct. 15, Senate concurred in House amendment.

PUBLIC LAW 95-579, 92 STAT. 2474

95TH CONGRESS, S. 2247 November 2, 1978.
Amending section 312 of the Immigration and Nationality

Act.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That, in the administration of the Immigration and Nationality Act, Eugenia Cortes shall be held and considered to be within the purview of the first proviso to section 312(1) of that Act and may be naturalized upon compliance with all of the other requirements of title III of that Act.

Sec. 2. That no financial or other consideration shall be paid or delivered to or received by any agent or attorney on account of services rendered in connection with the enactment of this Act, and the same shall be unlawful, any contract to the contrary notwithstanding. Any person violating the provisions of this section shall be guilty of a misdemeanor and upon conviction thereof shall be fined $1,000.

Sec. 3. The first proviso contained in paragraph (1) of section 312 of the Immigration and Nationality Act (8 U.S.C. 1423) is amended by striking out "or to any person who, on the effective date of this Act, is over fifty years of age and has been living in the United States for periods totaling at least twenty years" and by inserting in lieu thereof the following: "or to any person who, on the date of the filing of his petition for naturalization as provided in section 334 of this Act, is over fifty years of age and has been living in the United States for periods totaling at least twenty years subsequent to a lawful admission for permanent residence".

Approved November 2, 1978.

LEGISLATIVE HISTORY:

HOUSE REPORT No. 95-1683 (Comm. on the Judiciary).

SENATE REPORT No. 95-897 (Comm. on the Judiciary).

CONGRESSIONAL RECORD, Vol. 124 (1978):

May 23, considered and passed Senate.

Oct. 14, considered and passed House, amended.

Oct. 15, Senate concurred in House amendment.

PUBLIC LAW 95-578, 92 STAT. 2471, RECLAMATION SAFETY of DAMS ACT of 1978.

95th CONGRESS, S; 2820. NOVEMBER 2, 1978.
AN ACT To authorize the Secretary of the Interior to

construct, restore, operate, and

maintain new or modified features at existing Federal

reclamation dams for

safety of dams purposes.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That this Act shall be cited as the " Reclamation Safety of Dams Act // 43 USC 506 note. // of 1978".

Sec. 2. In order to preserve the structural safety of Bureau of Reclamation dams and related facilities the Secretary of the Interior is authorized to perform such modifications as he determines to be reasonably required. Said performance of work shall be in accordance with the Federal reclamation laws (Act // 43 USC 506. //// 43 USC 391 // of June 17, 1902, 32 Stat. 388, and Acts amendatory or supplementary thereto).

Sec. 3. Construction authorized by this Act shall be for the purposes of dam safety and not for the specific purposes of providing additional conservation storage capacity or of developing benefits over and above those provided by the original dams and reservoirs. Nothing in this Act shall be construed to reduce the amount of project costs allocated to reimbursable purposes heretofore authorized.

Sec. 4. (a) Costs heretofore or hereafter incurred in the modification of structures under this Act, the cause of which results from age and normal deterioration of the structure or from nonperformance of reasonable and normal maintenance of the structure by the operating entity shall be considered as project costs and will be allocated to the purposes for which the structure was authorized initially to be constructed and will be reimbursable as provided by existing law.

(b) Costs heretofore or hereafter incurred in the modification of structures under this Act, the cause of which results from new hydrologic or seismic data or changes in state-of-the -art criteria deemed necessary for safety purposes shall be nonreimbursable and nonreturnable under the Federal Reclamation law.

Sec. 5. There are hereby authorized to be appropriated for fiscal year 1979 and ensuing fiscal years such sums as may be necessary, but not to exceed $100,000,000, to carry out the provisions of this Act to remain available until expended if so provided by the appropriations Act: Provided, That no funds shall be obligated for carrying out actual construction to modify an existing dam under authority of this Act prior to sixty days (which sixty days shall not include days on which either the House of Representatives or the Senate is not in session because of an adjournment of more than three calendar days to a day certain) from the date that the Secretary has transmitted a report on such existing dam to the Congress. The report required to be submitted by this section will consist of a finding by the Secretary of the Interior to the effect that modifications are required to be made to isure the safety of an existing dam. Such finding shall be accompanied by a technical report containing information on the need for structural modification, the corrective action deemed to be required, alternative solutions to structural modification that were considered, the estimated cost of needed modifications, and environmental impacts if any resulting from the implementation of the recommended plan of modification.

Sec. 6. Notwithstanding any other provision of law, the Secretary of the Interior is authorized and directed to reimburse the Salt River Project for expenses incurred to modify the Bartlett Dam spillway and outfall channel, undertaken for safety of dam purposes pursuant to the provisions of this Act.

FEDERAL RECLAMATION DAMS SAFETY

Sec. 7. Notwithstanding any other provision of law, the Secretary of the Interior is authorized and directed to pay and discharge that portion of the costs associated with the replacement of the American Falls Dam which the irrigation spaceholder contracting entities are obligated to pay pursuant to the implementation of the act of December 28, 1973 (87 Stat. 904), to treat such costs as costs incurred under this act, and to enter into contracts with the irrigation spaceholder contracting entities to accomplish the payment and discharge of such costs.

Sec. 8. The Congress hereby finds that the oversight provided for in section 3 of Public Law 95 - 46 has been accomplished with respect to the three temporary water service contracts between the United States and the Westlands Water District, as forwarded to Congress on October 4, 1978.

Sec. 9. (a) The Secretary of the Interior, after October 1, 1979, shall make a full investigation and study to determine the feasibility of carrying out a project to rehabilitate and improve the existing Santa Cruz Dam and Reservoir, Santa Cruz Irrigation District, New Mexico, including--,

(1) repairing and stabilizing the face of the dam;

(2)enlarging spillway capacity to insure the safety of the dam; and

(3) raising the dam to increase the storage capacity of Santa Cruz Reservoir.

(b) In carrying out the investigation and study authorized by subsection (a) the Secretary shall give full consideration to the potential for developing the Santa Cruz Dam and Reservoir as a unit or part of the San Juan-Chama project.

(c) The Secretary shall submit to the President and the Congress as soon as practicable the results of such investigation together with his recommendations.

(d) There are authorized to be appropriated such sums as may be necessary to carry out the provisions of this bill.

Sec. 10. The fourth sentence of section 201 of the Act of September 30, 1968 (Public Law 90 - 537) is amended by striking out "from the date of this Act" and by inserting in lieu thereof the following: "from the date of the enactment of the Reclamation Safety of Dams Act of 1978".

Sec. 11. The Secretary of the Interior is hereby directed, notwithstanding the terms of the Contract Numbers 14 - 06 - 100 - 7174, to make necessary repairs on the Scoggins Valley Road around Henry Hagg Lake, Oregon, at Federal expense pursuant to the authority of Public Law 89 - 596 which authorized the construction, operation and maintenance of the Tualatin Reclamation Project in Oregon.

Approved November 2, 1978.

LEGISLATIVE HISTORY:

HOUSE REPORT No. 95 - 1125, accompanying H.R. 11153 (Comm. on Interior and Insular Affairs).

SENATE REPORT No. 95 - 810 (Comm. on Energy and Natural Resources).

CONGRESSIONAL RECORD, Vol 124 (1978):

July 28, considered and passed Senate.

Oct. 14, H.R. 11153 considered and passed House; passage vacated, ans S. 2820, amended, passed in lieu.

Oct. 15, Senate concurred in House amendment.

WEEKLY COMPILATION OF PRESIDENTIAL DOCUMENTS, Vol. 14, No. 44: Nov. 2, Presidential statement.

PUBLIC LAW 95-577, 92 STAT. 2470

95th CONGRESS, H.R. 13597. NOV. 2, 1978.
AN ACT To authorize the Architect of the Capitol to install

solar collectors for furnishing

a portion of the energy needs of the Rayburn House

Office Building and House

Office Building Annex Numbered 2, and for other

purposes.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That (a) the Architect of the Capitol, under the direction of the House Office Building Commission, shall install solar collectors for furnishing a portion of the energy needs of the Rayburn House Office Building and of House Office Building Annex Numbered 2.

(b) In carrying out this Act, the Architect of the Capitol, under the direction of the House Office Building Commission, is authorized to (1) procure such personal and other services as may be necessary to carry out this Act, and (2) provide for such structural and other changes in the Rayburn House Office Building and House Office Building Annex Numbered 2, such changes in or additions to their appurtenant facilities, such connections to existing facilities or utilities, and such equipment and apparatus, as may be necessary to carry out this Act.

Sec. 2. The Architect of the Capitol shall submit to the House Public Works and Transportation Committee final engineering and design drawings and final cost estimates for the project authorized under this Act, before soliciting bids to carry out the project. After the submission of such information, the Architect of the Capitol shall not solicit bids to carry out the project authorized under this Act until thirty legislative days after the date of such submission.

Sec. 3. There is hereby authorized to be appropriated not to exceed $3,000,000 to carry out this Act.

Approved November 2, 1978.

LEGISLATIVE HISTORY:

HOUSE REPORT No. 95 - 1513 (Comm. on Public Works and Transportation).

CONGRESSIONAL RECORD, Vol. 124 (1978):

Sept. 25, considered and passed House.

Oct. 15, considered and passed Senate.

PUBLIC LAW 95-576, 92 STAT. 2467

95th CONGRESS, H.R. 12140 NOV. 2, 1978
AN ACT To amend the Federal Water Pollution Control Act to

provide additional authorizations

for certain operating programs under the Act.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That (a) clause (1) of section 104 (u) of the Federal Water Pollution Control Act (33 U.S.C. 1254) is amended to read as follows: "(1) not to exceed $100,000,000 per fiscal year for the fiscal year ending June 30, 1973, the fiscal year ending June 30, 1974, and the fiscal year ending June 30, 1975, and not to exceed $14,039,000 for the fiscal year ending September 30, 1980, for carrying out the provisions of this section, other than subsections (g) (1) and (2), (p), (r), and (t), except that such authorizations are not for any research, development, or demonstration activity pursuant to such provisions;".

(b) (1) Section 311(a) (2) of the Federal Water Pollution Control Act is amended by inserting before the semicolon at the end thereof the following: ", but excludes (A) discharges in compliance with a permit under section 402 of this Act, (B) discharges resulting from circumstances identified and reviewed and made a part of the public record with respect to a permit issued or modified under section 402 of this Act, and subject to a condition in such permit, and (C) continuous or anticipated intermittent discharges from a point source, identified in a permit or permit application under section 402 of this Act, which are caused by events occurring within the scope of relevant operating or treatment systems". (2) Section 311(a) of the Federal Water Pollution Control Act is amended by adding at the end thereof the following new paragraph:

"(17) ' Otherwise subject to the jurisdiction of the United States' means subject to the jurisdiction of the United States by virtue of United States citizenship, United States vessel documentation or numbering, or as provided for by international agreement to which the United States is a party.".

(3) Section 311(b) (2) (B) of such Act is amended to read as follows:

"(B) The Administrator shall within 18 months after the date of enactment of this paragraph, conduct a study and report to the Congress on methods, mechanisms, and procedures to create incentives to achieve a higher standard of care in all aspects of the management and movement of hazardous substances on the part of owners, operators, or persons in charge of onshore facilities, offshore facilities, or vessels. The Administrator shall include in such study (1) limits of liability, (2) liability for third party damages, (3) penalties and fees, (4) spill prevention plans, (5) current practices in the insurance and banking industries, and (6) whether the penalty enacted in subclause (bb) of clause (iii) of subparagraph (B) of subsection (b)(2) of section 311 of Public Law 92 - 500 should be enacted.".

(4) Section 311 (b) (3) of such Act is amended by striking out "in harmful quantities" and inserting in lieu thereof "in such quantities as may be harmful".

(5) Section 311 (b) (4) of such Act is amended to read as follows:

"(4) The President shall by regulation determine for the purposes of this section those quantities of oil and any hazardous substances the discharge of which may be harmful to the public health or welfare of the United States, including but not limited to fish, shellfish, wildlife, and public and private property, shorelines, and beaches.".

(6) Section 311 (b)(5) of the Federal Water Pollution Control Act is amended by inserting "at the time of the discharge" after the words "otherwise subject to the jurisdiction of the United States".

(7) Section 311 (b)(6) of such Act is amended by inserting after "(6)" the letter "(A)" and by inserting "at the time of the discharge" after the words "otherwise subject to the jurisdiction of the United States", and by inserting four new subparagraphs as follows:

"(B) The Administrator, taking into account the gravity of the offense, and the standard of care manifested by the owner, operator, or person in charge, may commence a civil action against any such person subject to the penalty under subparagraph (A) of this paragraph to impose a penalty based on consideration of the size of the business of the owner or operator, the effect on the ability of the owner or operator to continue in business, the gravity of the violation, and the nature, extent, and degree of success of any efforts made by the owner, operator, or person in charge to minimize or mitigate the effects of such discharge. The amount of such penalty shall not exceed $50,000, except that where the United States can show that such discharge was the result of willful negligence or willful misconduct within the privity and knowledge of the owner, operator, or person in charge, such penalty shall not exceed $250,000. Each violation is a separate offense. Any action under this subparagraph may be brought in the district court of the United States for the district in which the defendant is located or resides or is doing business, and such court shall have jurisdiction to assess such penalty. No action may be commenced under this clause where a penalty has been assessed under clause (A) of this paragraph.

"(C) In addition to establishing a penalty for the discharge of a hazardous substance, the Administrator may act to mitigate the damage to the public health or welfare caused by such discharge. The cost of such mitigation shall be deemed a cost incurred under subsection (c) of this section for the removal of such substance by the United States Government.

"(D) Any costs of removal incurred in connection with a discharge excluded by subsection (a) (2) (C) of this section shall be recoverable from the owner or operator of the source of the discharge in an action brought under section 309 (b) of this Act.

"(E) Civil penalties shall not be assessed under both this section and section 309 for the same discharge.".

Approved November 2, 1978.

LEGISLATIVE HISTORY:

HOUSE REPORT No. 95 - 1097 (Comm. on Public Works and Transportation).

CONGRESSIONAL RECORD, Vol. 124 (1978):

June 5, considered and passed House.

Oct. 15, considered and passed Senate, amended; House concurred in Senate amendment.

PUBLIC LAW 95-575, 92 STAT. 2463

9kth Congress, S. 1487. NOV. 2, 1978.
An Act To amend title 18 of the United State Code to

eliminate racketeering in the

sale and distribution of cigarettes, and for other

purposes.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That title 18, United States Code, is amended by inserting after chapter 113 the following new chapter:

" CHAPTER 114 -TRAFFICKING IN CONTRABAND CIGARETTES

" Sec.

"2341. Definitions.

"2342. Unlawful acts.

"2343. Recordkeeping and inspection.

"2344. Penalties.

"2345. Effect on State law.

"2346. Enforcement and regulations.

" Sec. 2341. DEFINITIONS

" As used in this chapter--,

"(1) the term 'cigarette' means--, "(A) any roll of tobacco wrapped in paper or in any substance

not containing tobacco; and "(B) any roll of tobacco wrapped in any substance containing

tobacco which, because of its appearance, the type of

tobacco used in the filler, or its packaging and labeling, is

likely to be offered to, or purchased by, consumers as a cigarette

describe in subparagraph (A);

"(2) the term 'contraband cigarettes' means a quantity in excess of 60,000 cigarettes, which bear no evidence of the payment of applicable State cigarette taxes in the State where such cigarettes are found, if such State requires a stamp, impression, or other indication to be placed on packages or other containers of cigarettes to evidence payment of cigarette taxes, and which are in the possession of any person other than--,

"(A) a person holding a permit issued pursuant to chapter 52 of the Internal Revenue Code of 1954 as a manufacturer of tobacco products or as an export warehouse propreitor, or a person operating a customs bonded warehouse pursuant to section 311 or 555 of the Tariff Act of 1930 (19 U.S.C. 1311 0r 1555) or an agent of such person;

"(B) a common or contract carrier transporting the cigarettes involved under a proper bill of lading or freight bill which states the quantity, source, and destination of such cigarettes;

"(C) a person--,

"(i) who is licensed or otherwise authorized by the State where the cigarettes are found to account for and pay cigarette taxes imposed by such State; and

"(ii) who has complied with the accounting and payment requirements relating to such license or authorization with respect to the cigarettes involved; or

"(D) an officer, employee, or other agent of the United States or a State, or any deppartment, agency, or instrumentality of the United States or a State (including any political subdivision of a State) having possession of such cigarettes in connection with the performance of official duties;

"(3) the term 'common or contract carrier' means a carrier holding a certificate of convenience and necessity, a permit for contract carrier by motor vehicle, or other valid operating authority under the Interstate Commerce Act, or under equivalent operating authority from a regulatory agency of the United States or of any State;

"(4) the term ' State' means a State of the United States, the District of Columbia, the Commonwealth of Puerto Rico, or the Virgin Islands; and

"(5) the term ' Secretary' means the Secretary of the Treasury.

" Sec. 2342. Unlawful acts

"(a) It shall be unlawful for any person knowingly to ship, transport, receive, possess, sell, distribute, or purchase contraband cigarettes.

"(b) It shall be unlawful for any person knowingly to make any false statement or representation with respect to the information required by this chapter to be kept in the records of any person who ships, sells, or distributes any quantity of cigarettes in excess of 60,000 in a single transaction.

" Sec. 2343. Recordkeeping and inspection

"(a) Any person who ships, sells, or distributes any quantity of cigarettes in excess of 60,000 in a single transaction shall maintain such information about the shipment, receipt, sale, and distribution of cigarettes as the Secretary may prescribe by rule or regulation. The Secretary may require such person to keep only--,

"(1) the name, address, destination (including street address), vehicle license number, driver's license number, signature of the person receiving such cigarettes, and the name of the purchaser;

"(2) a declaration of the specific purpose of the receipt (personal use, resale, or delivery to another); and

"(3) a declaration of the name and address of the recipient's principal in all cases when the recipient is acting as an agent.

Such information shall be contained on business records kept in the normal course of business. Nothing contained herein shall authorize the Secretary to require reporting under this section.

"(b) Upon the consent of any person who ships, sells, or distributes any quantity of cigarettes in excess of 60,000 in a single transaction, or pursuant to a duly issued search warrant, the Secretary may enter the premises (including places of storage) of such person for the purpose of inspecting any records or information required to be maintained by such person under this chapter, and any cigarettes kept or stored by such person at such premises.

" Sec. 2344. Penalties

"(a) Whoever knowingly violates section 2342 (a) of this title shall be fined not more than $100,000 or imprisoned not more than five years, or both.

"(b) Whoever knowingly violates any rule or regulation promulgated under section 2343 (a) or 2346 of this title or violates section 2342 (b) of this title shall be fined not more than $5,000 or imprisoned not more than three years, or both.

"(c) Any contraband cigarettes involved in any violation of the provisions of this chapter shall be subject to seizure and forfeiture, and all provisions of the Internal Revenue Code of 1954 relating to the seizure, forfeiture, and disposition of firearms, as defined in section 5845 (a) of such Code, shall, so far as applicable, extend to seizures and forfeitures under the provisions of this chapter.

" Sec. 2345. Effect on State law

"(a) Nothing in this chapter shall be construed to affect the concurrent jurisdiction of a State to enact and enforce cigarette tax laws, to provide for the confiscation of cigarettes and other property seized for violation of such laws, and to provide for penalties for the violation of such laws.

"(b) Nothing in this chapter shall be construed to inhibit or otherwise affect any coordinated law enforcement effort by a number of States, through interstate compact or otherwise, to provide for the administration of State cigarette tax laws, to provide for the confiscation of cigarettes and other property seized in violation of such laws, and to establish cooperative programs for the administration of such laws.

" Sec. 2346. Enforcement and regulations

" The Secretary, subject to the provisions of section 2343 (a) of this title, shall enforce the provisions of this chapter and may prescribe such rules and regulations as he deems reasonably necessary to carry out the provisions of this chapter.".

Sec. 2. The table of chapters of part I of title 18, United States Code, is amended by inserting immediately below the item relating to chapter 113 the following:

"114. Trafficking in Contraband Cigarettes

2341."

Sec. 3. (a) Section 1(b) of the Act of August 9, 1939 (ch. 618, 53 Stat. 1291 (49 U.S.C. 781 (b))), is amended--,

(1) by striking out "or" at the end of paragraph (2);

(2) by striking out the period at the end of paragraph (3) and inserting in lieu thereof";or"; and

(3) by inserting after paragraph (3) the following new paragraph:

"(4) Any cigarette, with respect to which there has been committed any violation of chapter 114 of title 18, United States Code, or any regulation issued pursuant thereto.". (b) Section 7 of the Act of August 9, 1939 (ch 618, 53 Stat. 1291

(49 U.S.C. 787)))8 is amended--,

(1) by striking out "and" at the end of subsection (e);

(2) by striking out the period at the end of subsection (f) and inserting in lieu thereof";and";and

(3) by inserting after subsection (f) the following new subsection:

"(g) The term 'cigarettes' means 'contraband cigarettes' as now or hereafter defined in section 2341 of title 18, United States Code.".

(c) Section 1961(1) (B) of title 18, United States Code, is amended by inserting after "sections 2314 and 2315 (relating to interstate transportation of stolen property)," the following: "sections 2341 - 2346 (relating to trafficking in contraband cigarettes),". Sec. 4. (a) Except as provided in subsection (b), this Act shall take effect on the date of its enactment.

(b) Sections 2342 (b) and 2343 of title 18, United States Code, as enacted by the first section of this Act, shall take effect on the first day of the first month beginning more than 120 days after the date of the enactment of this Act.

Sec. 5. There are hereby authorized to be appropriated such sums as may be necessary to carry out the provisions of chapter 114 of title 18, United States Code, added by the first section of this Act.

Approved November 2, 1978.

LEGISLATIVE HISTORY:

HOUSE REPORTS: No. 95 - 1629, accompanying H.R. 8853 (Comm. on the Judiciary) and No. 95 - 1778 (Comm. of Conference).

SENATE REPORT No. 95 - 962 (Comm. on the Judiciary).

CONGRESSIONAL RECORD, Vol. 128 (1978):

Sept. 29, considered and passed Senate.

Oct. 3, H.R. 8853 considered and passed House; passage vacated, and S. 1487, amended, passed in lieu.

Oct. 15, House agreed to conference report.

Oct. 15, Senate agreed to conference report.

PUBLIC LAW 95-574, 92 STAT. 2459, FEDERAL RAILROAD SAFETY AUTHORIZATION ACT OF 1978.

95th CONGRESS, S. 3081. NOV. 2, 1978
AN ACT To amend the Federal Railroad Safety Act of 1970 to

authorize additional

appropriations, and for other purposes.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,

SHORT TITLE

Section 1. This Act may be cited as the " Federal Railroad Safety Authorization Act of 1978".

AUTHORIZATION FOR APPROPRIATIONS

Sec. 2. Section 212 of the Federal Railroad Safety Act of 1970 (45 U.S.C. 441) is amended to read as follows: " Sec. 212. AUTHORIZATION FOR APPROPRIATIONS.

"(a) There are authorized to be appropriated to carry out the provisions of this Act not to exceed $37,725,000 for the fiscal year ending September 30,1979, and not to exceed $37,725,000 for the fiscal year ending September 30, 1980.

"(b) The amounts appropriated under subsection (a) of this section for a fiscal year shall be available for expenditure in such fiscal year as follows:

"(1) For the Office of Safety, including salaries and expenses for not more than (A) 600 safety inspectors, (B) 45 signal and

train control inspectors, and (C) 125 clerial personnel, not to exeed $20,725,000. Such funds shall be available for travel expenses of safety inspectors for not less than 20 days per month.

"(2) To carry out the provisions of section 206(d) of this Act, relating to State safety programs, not to exceed $3,500,000.

"(3) For the Federal Railroad Administration, for salaries and expenses not otherwise provided for, not to exceed $3,500,000.

"(4) For conducting safety research and development activities under this Act, not to exceed $10,000,000. Sums appropriated

under this section for research and development, automated track inspection, and the State safety grant program are authorized to remain available until expended.".

LIMITATIONS ON FUNDING

Sec. 3. Not less than 50 percent of the funds appropriated to the Secretary of Transportation for any fiscal year to conduct railroad research and development programs under the Federal Railroad Safety Act of 1970 or any other Act shall be available for safety resarch, improved track inspection and data acqisition technology, improved rail freight service, and improved rail passenger systems.

HOURS OF SERVICE OF SIGNAL SYSTEM EMPLOYEES

Sec. 4. (a) Section 3 A(a) of the Hours of Service Act (45 U.S.C. 63a(a) is amended by adding at the end thereof, without paragraph indention, the following:

" Whenever the time on duty of an individual is broken or interrupted by any period of time off duty of less than eight consecutive hours, such individual may be on duty for not more than twelve hours during a twenty-four-hour period, if such individual has had at least eight consecutive hours off duty immediately before reportig for duty, or, where required by paragraph (1) of this subsection, at least ten consecutive hours off duty immediately before so reporting. After an individual has been on duty for a total of twelve hours during a period of twenty-four hours as permitted by the foregoing sentence, or at the end of such twenty-four-hour period, whichever occurs first, such individual shall not be required or permitted to continue on duty or to go on duty until he has had at least eight consecutive hours off duty. For purposes of this subsection, a twenty-four-hour period shall begin when an individual reports for duty immediately after he has had at least eight consecutive hours off duty or, where required by paragraph (1) of this subsection, at least ten consecutive hours off duty.".

(b) Section 3 A(c) of the Hours of Service Act (45 U.S.C. 63a(c)) is amended to read as follows: "(c) For purposes of this section, time on duty shall commence when an individual reports for duty and terminate when an individual is finally released from duty, except that--,

"(1) time spent in travel on return from a trouble call, whether directly to the individual's residence or by way of the individual's

headquarters, shall be considered neither time on duty nor time off duty, except that up to sixty minutes of such time on return from the final trouble call of a period of continuous or broken service shall be considered time off duty;

"(2) if, at the expiration of scheduled duty hours, an individual has not completed the trip from the final outlying worksite of the

duty period to the individual's headquarters or from the final outlying worksit of the worksite directly to the individual's residence, then the time

spent in travel outside the scheduled duty hours which is required

to complete the trip to such headquarters or directly to such residence, as the case may be, shall be considered neither time on duty nor time off duty;

"(3) if an individual is released from duty at an outlying worksite

prior to the end of such individual's scheduled duty hours in order to comply with this section, the period of time required

for the trip from the outlying worksite to the individual's headquarters,

or the peirod ot time required for the trip from the

outlying worksite direct to the individual's residence, as the case

may be, shall be considered neither time on duty nor time off duty;

"(4) all time spent in transportation on an ontrack vehicle, including time referred to in paragraphs (1), (2), and (3) of this subsection, shall be considered time on duty; and

"(5) (A) regularly scheduled meal periods and other release periods of thirty minutes or more up to sixty minutes shall be considered time off duty but shall not break an individual's continuity of service for purposes of this section, and (B) release periods of more than one hour shall be considered time off duty and shall break an individual's continuity of service for purposes

of this section.".

(c) The amendments made by this section shall be effective as of july 8, 1976, except that no action or conduct which occurred during the period begining on such date and ending on the date of enactment of this Act and which was lawful under the Hours of Service Act as in effect on July 8, 1976, shall be deemed to be unlawful under such Act as amended by this Act.

HOURS OF SERVICE ACT; COMMERCE REQUIREMENT

Sec. 5. Subsection (a) of the first section of the Hours of Service Act (45 U.S.C. 61(a)) is amended to read as follows: "(a) this Act shall apply to any common carrier engaged in interstate or foreign commerce by railroad.".

DESIGNATED TERMINAL

Sec. 6. Subsection (b) of the first section of the Hours of Service Act (45 U.S.C. 61(b)) is amended by adding at the end thereof the following new paragraph:

"(4) The term 'designated terminal' means the home terminal and the away from home terminal for the assignment of a particular crew. Time on duty shall not include interim rest periods of four or more hours between designated terminals where the employee is prevented from reaching his or her designated terminal by act of God, track obstruction, casualty, derailment or major disabling equipment failure, which derailment or disabling equipment failure was the result of a cause not known to the carrier or its officer or agent in charge of the employee at the time such employee left the designated terminal, and which could not have been foreseen, and only then at a place where suitable facilities for food and lodging are available.".

ASSESSMENT OF PENALTIES

Sec.7. (a) Section 6 of the Act of March 2, 1893 (45 U.S.C. 6) is amended by inserting " assessed by the Secretary of Transporation and" immediately after "shall be liable to a penalty of not less than $250 and not more than $2,500 for each and every such violation, to be".

(b) Section 4 of the Act of April 14, 1910 (45 U.S.C. 13) is amended by inserting "assessed by the Secretary of Transportation and" immediately after "shall be liable to a penalty of not less than $250 and not more than $2,500 for each and every such violation, to be".

(c) Section 9 of the Act of February 17, 1911 (45 U.S.C. 34) is amended by inserting "assessed by the Secretary of Transportation and" immediately after "shall be liable to a penalty of not less than $250 and not more than $2,500 for each and every such violation, to be".

(d) Section 25(h) of part I of the Interstate Commerce Act (49 U.S. C. 26(h)), is amended by inserting "assessed by the Secretary of Transportation and" immediately after "shall be liable to a penalty of not less than $250 and not more than $2,500 for each and every day such violation, refusal, or neglect continues, to be".

NOTICE OF VIOLATIONS

Sec. 8. The first sentence of section 207 of the Federal Railroad Safety Act of 1970 (45 U.S.C. 436) is amended to read as follows: " In any case in which the Secretary has failed to assess the civil penalty applicable under section 209 of this title, or no civil action has been commenced to obtain injunctive relief under section 210 of this title, with respect to a violation of any railroad safety rule, regulation, order, or standard issued under this title, within 90 days after the date on which notification was received by the Secretary from a State agency participating in investigative and surveillance activities under the provisions of section 206 of this title, that State agency may apply to the district court of the United States within the jurisdiction of which the violation occurred for the enforcement of such rule, regulation, order, or standard.".

ROLE OF DEPARTMENT OF TRANSPORTATION IN RAILROAD

ACCIDENT INVESTIGATIONS;

LIABILITY OF DEPARTMENT OF TRANSPORTATION'S AGENTS

Sec. 9. Section 208 of the Federal Railroad Safety Act of 1970 (45 U.S.C. 437) is amended--,

(1) by striking out subsection (b) and redesignating subsections (c) and (d) as subsections (b) and (c), respectively, and

(2) by amending subsection (b), as so redesignated to read as follows:

"(b) To carry out the Secretary's responsibilities under this title, officers, employees, or agents of the Secretary are authorized to enter upon, inspect, and examine rail facilities, equipment, rolling stock, operations, and pertinent records at reasonable times and in a reasonable manner. Such officers, employees, or agents shall display proper credentials when requested, and during the course of such inspection or examination shall be considered employees of the Federal Government for purposes of chapter 171 of title 28 of the United States Code.".

RAIL TRANSPORTATION SAFETY AND EFFICIENCY STUDY

Sec. 10. (a) The Secretary of Transportation shall conduct a study and evaluation concerning the safety and efficiency of rail transportation. Such study and evaluation shall include--,

(1) a determination of the relationship of the size, weight, and length of railroad cars (other than those contained in unit trains) to the safety and efficiency of rail transportation; and

(2) a determination of the effect of the exclusive ownership and control of rights-of-way by individual railroads on the safety and efficiency of rail transportation, considering, among other things, whether or not such rights-of-way might be better employed under new structures of ownership or other conditions for joint usage.

(b) Within one year after the date of enactment of this Act, the Secretary of Transportation shall complete the portion of the study described in subsection (a) (1) of this section.

(c) Within two years after the date of enactment of this Act, the Secretary of Transportation shall complete the portion of the study described in subsection (a) (2) of this section and submit a report to the Congress setting forth the results of such study, together with recommendations for such legislative or other action as the Secretary deems appropriate.

Approved November 2, 1978.

LEGISLATIVE HISTORY:

HOUSE REPORT No. 95 - 1176 accompanying H.R. 12577 (Comm. on Interstate and Foreign Commerce).

SENATE REPORT No. 95 - 865 (Comm. on Commerce, Science, and Transportation).

CONGRESSIONAL RECORD, Vol. 124 (1978):

May 25, considered and passed Senate.

Oct. 11, 13, H.R. 12577 considered and passed House; passage vacated, and S. 3081, amended, passed in lieu.

Oct. 15, Senate concurred in House amendments.

PUBLIC LAW 95-573, 92 STAT. 2458

95th CONGRESS, H. R. 14145 NOVEMBER 2, 1978
AN act To amend title 28 of the United States Code to make

certain changes in the

divisions within judical districts and in the places of

holding court, and

to require the Director of the Administrative Office

of the United States

courts to conduct a study of the judicial business of

the Central District of

california and the Eastern District of New York.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That section 93 of title 28, United States Code, is amended--,

(1) in paragraph (1) of subsection (a), by striking out " Kankakee,", and

(2) in subsection (b), by inserting " Kankakee," immediately after " Iroquois,".

Sec. 2. Section 99 of title 28 of the United States Code is amended to read as follows:

" Section 99. Maine

" Maine constitutes one judicial district.

" Court shall be held at Bangor and Portland.".

Sec. 3. The last sentence of section 112(b) of title 28, United States Code, is amended to read as follows:

" Court for the Southern District shall be held at New York and White Plains.".

Sec. 4. The last sentence of section 118(c) of title 28, United States Code, is amended to read as follows:

" Court for the Western District shall be held at Erie, Johnstown, and Pittsburgh.".

Sec. 5. Within one year after the date of enactment of this Act, the Director of the Administrative Office of the United States Courts shall conduct a comprehensive study of the judicial business of the Central District of California and the Eastern District of New York, and shall make recommendations to the Congress with respect to the need for creation of new judicial districts from portions of the judicial districts referred to in this section or the immediately surrounding judicial districts.

Sec. 6. Except as provided in subsection (b) of this section, // 28 USC 93 // the provisions of this Act shall take effect 180 days after the date of enactment of this Act.

(b) The provisions of section 5 of this Act shall take effect on the date of enactment of this Act

(c) Noting in this Act shall affect the composition or preclude the service of any grand or petit juror summoned, empaneled, or actually serving in any judicial district on the effective date of this Act.

Approved November 2, 1978.

LEGISLATIVE HISTORY:

HOUSE REPORT No. 95 - 1763 (Comm. on the Judiciary).

CONGRESSIONAL RECORD, Vol. 124 (1978):

Oct. 12, considered and passed House.

Oct. 15, considered and passed Senate.

PUBLIC LAW 95-572. 92 STAT. 2453, JURY SYSTEM IMPROVEMENTS ACT OF 1978

95th CONGRESS, S. 2075 NOVEMBER 2, 1978
An Act To amend the Jury Section and Service Act of 1968, as

amended, by revising

the section on fees of jurors and by providing for a

civil penalty and injunctive

relief in the event of a discharge or threatened

discharge of an employee by

reason of such employee's Federal jury service.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,

SHORT TITLE

Section 1. This Act // 28 USC 1861 //

may be cited as the " Jury System Improvements

Act of 1978".

EXCUSE FROM JURY SERVICE

Sec. 2. (a) Section 1863(b) of title 28, United States Code, is amended--,

(1) by striking out paragraph (7) ; and

(2) by redesignating paragraphs (8) and (9), and all references thereto, as paragraphs (7) and (8) , respectively.

(b) Section 1866 (c) of title 28, United States Code, is amended by striking out "paragraph (5), (6), or (7)" and inserting in lieu thereof" paragraph (5) or (6)".

JURY SERVICE UPON RESTORATION OF CIVIL RIGHTS

Sec. 3. (a) Section 1865 (b) (5) of title 28, United States Code, is amended by striking out "by pardon or amnesty"

(b) Section 1869(h) of title 28, United States Code, is amended by striking out "by pardon or amnesty.".

DEFINITIONS

Sec. 4. Section 1869 of title 28, United States Code, is amended--,

(1) by striking out the period at the end of subsection (1) and inserting in lieu thereof a semicolon; and

(2) by adding at the end thereof the following new subsection:

"(j) undue hardship or extreme inconvenience', as a basis for excuse from immediate jury service under section 1866 (c) (1) of this chapter, shall mean great distance, either in miles or traveltime from the place of holding court, grave illness in the family or any other emergency which outweighs in immediacy and urgency the obligation to serve as a juror when summoned, or any other factor which the court determines to constitute an undue hardship or to create an extreme inconvenience to the juror; and in addition, in situations where it is anticipated that a trial or grand jury proceeding may require more than thirty days of service, the court may consider, as a further basis for temporary excuse, severe economic hardship to an employe which would result from the absence of a key employee during the period of such service;

"(k) 'publicly draw, as referred to in sections 1864 and 1866 of this chapter, shall mean a drawing which is conducted within the district after reasonable public notice and which is open to the public at large under the supervision of the clerk or jury commission, except that when a drawing is made by means of electronic data processing, 'publicly draw' shall mean a drawing which is conducted at a data processing center located in or out of the district, after reasonable public notice given in the district for which juror names are being drawn, and which is open to the public at large under such supervision of the clerk or jury commission as the Judicial Conference of the United States shall by regulation require; and

"(1) jury summons' shall mean a summons issued by a clerk of court, jury commission, or their duly designated deputies, containing either a preprinted or stamped seal of court, and containing

the name of the issuing clerk imprinted in perprinted, type, or facsimile manner on the summons or the envelopes transmitting the summons.".

FEES OF JURORS

Sec. 5. Section 1871 of title 28, United States Code, is amended to read as follows:

" Section 1871. Fees

"(a) Grand and petit jurors in district courts appearing pursuant to this chapter shall be paid the fees and allowances provided by this section. The requisite fees and allowances shall be disbursed on the certificate of the clerk of court in accordance with the procedure established by the Director of the Administrative Office of the United States Courts. Attendance fees for extended service under subsection (b) of this section shall be certified by the clerk only upon the order of a district judge.

"(b)(1) A juror shall be paid an atendance fee of $30 per day for actual attendance at the place of trial or hearing. A juror shall also be paid the attendance fee for the time necessarily occupied in going to and returning from such place at the begining and end of such service or at any time during such service. "(2) A petit juror required to attend more than thirt days in hearing one case may be paid, in the discretion of the trial judge, an additional fee, not exceeding $5 more than the attendance fee,for each day in excess of thirty days on which he is required to hear such case. "(3) A grand juror required to attend more than forty-five days of actual service may be paid, in the discretion of the district judge in charge of the particular grand jury, an additional fee, not exceeding $5 more than the attendance fee, for each day in excess of forty-five days of actual service. "(4) A grand or petit juror required to attend more than ten days of actual service may be paid, in the discretion of the judge, the appropriate fees at the end of the first ten days and at the end of every ten days of service thereafter. "(5) Certification of additional attendance fees may be ordered by the judge to be made effective commencing on the first day of extended service, without reference to the date of such certification. "(c)(1) A travel allowance not to exceed the maximum rate per mile that the Director of the Administrative Office of the United States Courts has prescribed pursuant to section 604(a) (7) of this title for payment to supporting court personnel intravel status using privately owned automobiles shall be paid to each juror, regardless of the mode of transportation actually employed. The prescribed rate shall be paid for the distance necessarily traveled to and from a juror's residence by the shortest practical route in going to and returning from the place of service. Actual mileage in full at the prescribed rate is payable at the beginning and the end of a juror's term of service. "(2) The Director shall promulgate rules regulating interim travel allowances to jurors. Distances traveled to and from court should coincide with the shortest practical route. "(3) Toll charges for toll roads, bridges, tunnels, and ferries shall be paid in full to the juror incurring such charges. In the discretion of the court, resonable parking fees may be paid to the juror incurring such fees upon presentation of a valid parking receipt. Parking fees shall not be included in any tabulation of mileage cost allowances. "(4) Any juror who travels to district court pursuant to summons in an area outside of the contiguous forty-eight States of the United States shall be paid the travel expenses provided under this section, or actual reasonable transportation expenses subject to the discretion of the district judge or clerk of court as circumstances indicate, exercising due regard for the mode of transportation, the availability of alternative modes, and the shortest practical route between residence and court. "(d)(1) A subsistence allowance covering meals and lodging of jurors shall be established from time to time by the Director of the Administrative Office of the United States Courts pursuant to section 604 (a)(7) of this title, except that such allowance shall not exceed the allowance for supporting court personnel in travel status in the same geographical area. Claims for such allowance shall not require itemization. "(2) A subsistence allowance shall be paid to a juror when an overnight stay is required at the place of holding court, and for the time necessarily spent in traveling to and from the place of attendance if an overnight stay is requied "(3) A subsistence allowance for jurors serving in district courts outside of the contiguous forty-eight States of the United States shall be allowed at a rate not to exceed that per diem allowance which is paid to supporting court personnel in travel status in those areas where the Director of the Administrative Office of the United States Courts has prescribed an increased per diem fee pursuant to section 604 (a)(7) of this title. "(e) During any period in which a jury is ordered to be kept together and not to separate, the actual cost of subsistence shall be paid upon the order of the court in lieu of the subsistence allowances payable under subsection (d) of this section. Such allowance for the jurors ordered to be kept separate or sequestered shall include the cost of meals, lodging, and other expenditures ordered in the discretion of the court for their convenience and comfort. "(f) A juror who must necessarily use public transportation in traveling to and from court, the full cost of which is not met by the transportation expenses allowable under subsection (c) of this section on account of the short distance traveled in miles, may be paid, in the discretion of the court, the actual reasonable expense of such public transpotation, pursuant to the methods of payment provided by this section. Jurors who are required to remain at the court beyond the normal business closing hour for deliberation or for any other reason may be transported to their homes, or to temporary lodgings where such lodgings are ordered by the court, in a manner directed by the clerk and paid from funds authorized under this section. "(g) The Director of the Administrative Office of the United States Courts shall promulgate such regulations as may be necessary to carry out his authority under this section.".

PROTECTION OF JURORS' EMPLOYMENT

Sec. 6. (a)(1) Chapter 121 of title 28, United States Code, is amended by adding at the end thereof the following new section:

Section 1875. // 28 USC 1875. // Protection of jurors' employment

"(a) No employer shall discharge, threaten to discharge, intimidate, or coerce any permanent employee by reason of such employee's jury service, or the attendance or scheduled attendance in connection with such service, in any court of the United States. "(b) Any employer who violates the provisions of this section--,

"(1) shall be liable for damages for any loss of wages or other

benefits suffered by an employee by reason of such violation;

"(2) may be enjoined from further violations of this section and ordered to provide other appropriate relief, including but

not limited to the reinstatement of any employee discharged by reason of his jury service; and

"(3) shall be subject to a civil penalty of not more than $1,000 for each violation as to each employee.

"(c) Any individual who is reinstated to a position of employment in accordance with the provisions of this section shall be considered as having been on furlough or leave of absence during his period of jury service, shall be reinstated to his position of employment without loss of seniority,and shall be entitled to participate in insurance or other benefits offered by the employer pursuant to esablished rules and practices relating to employees on furlough or leave of absence in effect with the employer at the time such individual entered upon jury service.

"(d) An individual claiming that his employer has violated the provisions of this section may make application to the district court for the district in which such employer maintains a place of business and the court shall, upon finding probable merit in such claim, appoint counsel to represent such individual in any action in the district court neccessary to the resolution of such claim. Such counsel shall be compensated and necessary expenses repaid to the extent provided by section 3006 A of title 18, United States Codes.

"(2) In any action or proceeding under this section, the court may award a prevailing employee who brings such action by retained counsel a reasonable attorney's fee as part of the costs. The court may award a prevailing employer a reasonable attorney's fee as part of the costs if the court determines that the action is frivolous, vexatious, or brought in bad faith.".

(2) The chapter analysis of chapter 121 of title 28, United States Code, is amended by adding at the end thereof the following new item:

"1875. Protection of jurors' employment.".

(b)(1) Chapter 85 of title 28, United States Code, is amended by redesignating section 1363, and all refernces thereto, as section 1364, and by inserting immediately after section 1362 the following new section:

" Section 1363. // 28 USC 1363 // Jurors' employment rights

" The district courts shall have original jurisdiction of any civil action brought for the protection of jurors' employment under section 1875 of this title.".

(2) The chapter analysis of chapter 28, United States Code, is amended by striking out the item relating to section 1363 and inserting in lieu thereof the following:

"1363. Jurors' employment rights.

"1364. Construction of references to laws of the United States or Acts of Congress.".

EFFECTIVE DATE

Sec.7. (a) Except as provided in subsection (b) of this section, // 28 USC 1363 // the amendments made by this Act shall apply with respect to any grand or petit juror summoned for service or actually serving on or after the date of enactment of this Act.

(b) The amendment made by section 5 of this Act shall apply with respect to any grand or petit juror serving on or after the sixtieth day following the date of enactment of this Act

Approved November 2, 1978.

LEGISLATIVE HISTORY:

HOUSE REPORT no. 95 - 1652 (Comm. on the Judiciary).

SENATE REPORT No. 95 - 757 (Comm. on the Judiciary).

CONGRESSIONAL RECORD, Vol. 124 (1978):

Apr. 27, considered and passed Senate.

Oct. 12, considered and passed House, amended.

Oct. 13, Senate concurred in House amendment.

PUBLIC LAW 95-571, 92 STAT. 2452

95th CONGRESS, H.R. 14224 NOVEMBER 2, 1978
An Act To authorize and direct the Secretary of the Interior

to acquire certain lands

for the benefit of the Mille Lacs Band of the

Minnesota Chippewa Indians.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, Section 1. (a) The Secretary of the Interior is authorized, if he finds legal title to such lands to be in private ownership, to acquire by purchase the following described lands: Government lot 4, section 28, township 43 north, range 27 west, fourth principal meridian, Mille Lacs County, Minnesota.

(b) Lands acquired by the Secretary pursuant to subsection (a) shall be held by the United States in trust for, and for the benefit and use of, the Mille Lacs Band of the Minnesota Chippewa Indians.

Sec. 2. There is authorized to be appropriated such sum as may be necessary to carry out the purposes of this Act. The purchase price of said lands shall be an amount equal to their fair market value.

Approved November 2, 1978.

LEGISLATIVE HISTORY:

CONGRESSIONAL RECORD, Vol. 124 (1978):

Oct. 14, considered and passed House.

Oct. 15, considered and passed Senate.

PUBLIC LAW 95-570, 92 STAT. 2445

95th CONGRESS, H.R. 11003 NOVEMBER 2, 1978.
An Act To clarify the authority for employment of personnel in

the White House Office

and the Executive Residence at the White House, to

clarify the authority for

employment of personnel by the President to meet

unanticipated needs, and for

other purposes.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That (a) sections 105 and 106 of title 3, United States Code, are amended to read as follows:

" ASSISTANCE AND SERVICES FOR THE PRESIDENT

" Sec. 105. (a)(1) subject to the provisions of paragraph (2) of this subsection, the President is authorized to appoint and fix the pay of employees in the White House Office without regard to any other provision of law regulating the employment or compensation of persons in the Government services. Employees so appointed shall perform such official duties as the President may prescribe.

"(2) The President may, under paragraph (1) of this subsection, appoint and fix the pay of not more than--,

"(A) 25 employees at rates not to exceed the rate of basic pay then currently paid for level II of the Executive Schedule of

section 5313 of title 5; and in addition

"(B) 25 employees at rates not to exceed the rate of basic pay then currently paid for level III of the Executive Schedule of

section 5314 of title 5; and in addition

"(C) 50 employees at rates not to exceed the maximum rate of

basic pay then currently paid for GS-18 of the General Schedule

of section 5332 of title 5; and in addition

"(D) such number of other employees as he may determine to

be appropriate at rates not to exceed the minimum rate of basic

pay then currently paid for GS-16 of the General Schedule of section 5332 of title 5.

"(b)(1) Subject to the provisions of paragraph (2) of this subsection, the President is authorized to appoint and fix the pay of employees in the Executive Residence at the White House without regard to any other provision of law regulating the employment or compensation of persons in the Government service. Employees so appointed shall perform such official duties as the President may prescribe.

"(2) The President may, under paragraph (1) of this subsection, appoint and fix the pay of not more than--,

"(A) 3 employees at rates not to exceed the maximum rate of basic pay then currently paid for GS- 18 of the General Schedule of section 5332 of title 5; and in addition

"(B) such number of other employees as he may determine to be appropriate at rates not to exceed the minimum rate of basic pay then currently paid for GS- 16 of the General Schedule of section 5332 of title 5.

"(c) The President is authorized to procure for the White House Office and the Executive Residence at the White House, as provided in appropriation Acts, temporary or intermittent services of experts and consultants, as described in and in accordance with the first two sentences of section 3109(b) of title 5--,

"(1) in the case of the White House Office, at respective daily rates of pay for individuals which are not more than the daily equivalent of the rate of basic pay then currently paid for level II of the Executive Schedule of section 5313 of title 5; and

"(2) in the case of the Executive Residence, at respective daily rates of pay for individuals which are not more than the daily equivalent of the maximum rate of basic pay then currently paid for GS - 18 of the General Schedule of section 5332 of title 5.

Notwithstanding such section 3109(b), temporary services of any expert or consultant described in such section 3109(b) may be procured for a period in excess of one year if the President determines such procurement is necessary.

"(d) There are authorized to be appropriated each fiscal year to the President such sums as may be necessary for--,

"(1) the care, maintenance, repair, alteration, refurnishing, improvement, air-conditioning, heating, and lighting (including electric power and fixtures) of the Executive Residence at the White House;

"(2) the official expenses of the White House Office;

"(3) the official entertainment expenses of the President;

"(4) the official entertainment expenses for allocation within the Executive Office of the President; and

"(5) the subsistence expenses of persons in the Government service while traveling on official business in connection with the travel of the President.

Sums appropriated under this subsection for expenses described in paragraphs (1), (3), and (5) may be expended as the President may determine, notwithstanding the provisions of any other law. Such sums shall be accounted for solely on the certificate of the President, except that, with respect to such expenses, the Comptroller General may inspect all necessary books, documents, papers, and records relating to any such expenditures solely for the purpose of verifying that all such expenditures related to expenses in paragraph (1), (3), or (5). The Comptroller General shall certify to Congress the fact of such verification, and shall report any such expenses not expended for such purpose.

"(e) Assistance and services authorized pursuant to this section to the President are authorized to be provided to the spouse of the President in connection with assistance provided by such spouse to the President in the discharge of the President's duties and responsibilities. If the President does not have a spouse, such assistance and services may be provided for such purposes to a member of the President's family whom the President designates.

ASSISTANCE AND SERVICES FOR THE VICE PRESIDENT

" Sec. 106. (a) in order to enable the Vice President to provide assistance to the President in connection with the performance of functions specially assigned to the Vice President by the President in the discharge of executive duties and responsibilities, the Vice President is authorized--,

"(1) without regard to any other provision of law regulating the employment or compensation of persons in the Government service, to appoint and fix the pay of not more than--,

"(A) 5 employees at rates not to exceed the rate of basic pay then currently paid for level II of the Executive Schedule of section 5313 of title 5; and in addition

"(B) 3 employees at rates not to exceed the rate of basic pay then currently paid for level III of the Executive Schedule of section 5314 of title 5; and in addition

"(C) 3 employees at rates not to exceed the maximum rate of basic pay then currently paid for GS- 18 of the General Schedule of section 5332 of title 5; and in addition

"(D) such number of other employees as he may determine to be appropriate at rates not to exceed the minimum rate of basic pay then currently paid for GS-16 of the General Schedule of section 5332 of title 5; and

"(2) to procure, as provided in appropriation Acts, temporary or intermittent services of experts and consultants, as described in and in accordance with the first two sentences of section 3109(b) of title 5, at respective daily rates of pay for individuals which are not more than the daily equivalent of the rate of basic pay then currently paid for level II of the Executive Schedule of section 5313 of title 5.

Notwithstanding such section 3109(b), temporary services of any expert or consultant described in such section 3109(b) may be procured under paragraph (2) of this subsection for a period in excess of one year if the Vice President determines such procurement is necessary.

"(b) In order to carry out the executive duties and responsibilities referred to in subsection (a), there are authorized to be appropriated each fiscal year to the Vice President such sums as may be necessary for--,

"(1) the official expenses of the Office of the Vice President;

"(2) the official entertainment expenses of the Vice President; and

"(3) the subsistence expenses of persons in the Government service while traveling on official business in connection with the

travel of the Vice President. Sums appropriated under this subsection for expenses described in paragraphs (2) and (3) may be expended as the Vice President may determine, notwithstanding the provisions of any other law. Such sums shall be accounted for solely on the certificate of the Vice President, except that, with respect to such expenses, the Comptroller General may inspect all necessary books, documents, papers, and records relating to any such expenditures solely for the purpose of verifying that all such expenditures related to expenses in paragraph (2) or (3). The Comptroller General shall certify to Congress the fact of such verification, and shall report any such expenses not expended for such prupose.

"(c) Assistance and services authorized pursuant to this section to the Vice President are authorized tobe provided to the spouse of the Vice President in connection with assistance provided by such spouse to the Vice President in the discharge of the Vice President's executive duties and responsibilities. If the Vice President does not have a spouse, such assistance and services may be provided for such purposes to a member of the Vice President's family whom the Vice President designates.".

(b) The items relating to sections 105 and 106 in the table of sections at the beginning of chapter 2 of title 3, United States Code, // 3 USC 101. // amended to read as follows:

"105. Assistance and services for the President.

"106. Assistance and services for the Vice President.".

Sec. 2. (a) Chapter 2 of title 3, United States Code, is amended by striking out section 107 and inserting in lieu thereof the following the new sections: " DOMESTIC POLICY STAFF AND OFFICE OF ADMINISTRATION; PERSONNEL

" Sec. 107. (a) In order to enable the Domestic Policy Staff to perform its functions, the President (or his designee) is authorized--,

"(1) without regard to any other provision of law regulating the employment or compensation of persons in the Government service, to appoint and fix the pay of not more than--,

"(A) 6 employees at rates not to exceed the rate of basic pay then currently paid for level III of the Executive Schedule of section 5314 of title 5; and in addition

"(B) 18 employees at rates not to exceed the maximum rate of basic pay then currently paid for GS- 18 of the General Schedule of section 5332 of title 5; and in addition

"(C) such number of other employees as he may determine to be appropriate at rates not to exceed the minimum rate of basic pay then currently paid for GS-16 of the General

Schedule of section 5332 of title 5; and

"(2) to procure, as provided in appropriation Acts, temporary or intermittent services of experts and consultants, as described in and in accordance with the first two sentences of section 3109 (b) of title 5, at respective daily rates of pay for individuals which are not more than the daily equivalent of the rate of basic pay then currently paid for level III of the Executive Schedule of section 5314 of title 5.

"(b)(1) In order to enable the Office of Administration to perform its functions, the President (or his designee) is authorized--,

"(A) without regard to such other provisions of law as the President may specify which regulate the employment and compensation of persons in the Government service, to appoint and fix the pay of not more than--,

"(i) 5 employees at rates not to exceed the rate of basic pay then currently paid for level III of the Executive Schedule of section 5314 of title 5; and in addition

"(ii) 5 employees at rates not to exceed the maximum rate of basic pay then currently paid for GS-18 of the General Schedule of section 5332 of title 5; and

"(B) to procure, as provided in appropriation Acts, temporary or intermittent services of experts and consultants, as described in and in accordance with the first two sentences of section 3109(b) of title 5, at respective daily rates of pay for individuals which are not more than the daily equivalent of the maximum rate of basic pay then currently paid for GS-18 of the General Schedule of section 5332 of title 5.

"(2) In addition to any authority granted under paragraph (1) of this subsection, the President (or his designee) is authorized to employ individuals in the Office of Administration in accordance with section 3101 of title 5 and provisions relating thereto. Any individual so employed under the authority granted under such section 3101 shall be subject to the limitation specified in section 114 of this title.

"(c) There are authorized to be appropriated each fiscal year such sums as may be necessary for the official expenses of the Domestic Policy Staff and the Office of Administration.

" ASSISTANCE TO THE PRESIDENT FOR UNANTICIPATED NEEDS

" Sec. 108. (a) There is authorized to be appropriated to the President an amount not to exceed $1,000,000 each fiscal year to enable the President, in his discretion, to meet unanticipated needs for the furtherance of the national interest, security, or defense, including personnel needs and needs for services described in section 3109(b) of title 5, and administrative expenses related thereto, without regard to any provision of law regulating the employment of persons in the Government service or regulating expenditures of Government funds.

"(b) The President shall transmit a report to each House of the Congress for each fiscal year beginning on or after the effective date of this subsection which sets forth the purposes for which expenditures were made under this section for such fiscal year and the amount expended for each such purpose. Each such report shall be transmitted no later than 60 days after the close of the fiscal year covered by such report.

"(c) An individual may not be paid under the authority of this section at a rate of pay in excess of the rate of basic pay then currently paid for level II of the Executive Schedule of section 5313 of title 5.".

(b) The items relating to sections 107 and 108 in the table of sections at the beginning of chapter 2 of title 3, United States Code, are amended to read as follows:

"107. Domestic Policy Staff and Office of Administration; personnel.

"108. Assistance to the President for unanticipated needs.".

Sec. 3. (a) Chapter 2 of title 3, United States Code, is amended by adding at the end thereof the following new sections:

" DETAIL OF EMPLOYEES OF EXECUTIVE DEPARTMENTS

" Sec. 112. The head of any department, agency, or independent establishment of the executive branch of the Government may detail, from time to time, employees of such department, agency, or establishment to the White House Office, the Executive Residence at the White House, the Office of the Vice President, the Domestic Policy Staff, and the Office of Administration. Any such office to which an employee has been detailed for service to such office shall reimburse the detailing department, agency, or establishment for the pay of each employee thereof--,

"(1) who is so detailed, and

"(2) who is performing services which have been or would otherwise be performed by an employee of such office, for any period occuring during any fiscal year after 180 calendar days after the employee is detailed in such year.

" PERSONNEL REPORT

" Sec. 113. (a) The President shall transmit to each House of the Congress, and make available to the public, reports containing information described in subsection (b) for each fiscal year beginning on or after the effective date of this section. Each such report shall be transmitted no later than 60 days after the close of the fiscal year covered by such report and shall contain a statement of such information for such year.

"(b) Each report required under subsection (a) shall contain--,

"(1) the number of employees who are paid at a rate of basic pay equal to or greater than the rate of basic pay then currently paid for level V of the Executive Schedule of section 5316 of title 5 and who are employed in the White House Office, the Executive

Residence at the White House, the Office of the Vice President, the Domestic Policy Staff, or the Office of Administration,and

the aggregate amount paid to such employees;

"(2) the number of employees employed in such offices who are paid at a rate of basic pay which is equal to or greater than the minimum rate of basic pay then currently paid for GS-16 of the General Schedule of section 5332 of title 5 but which is less than the rate then currently paid for level V of the Executive Schedule of section 5316 of title V and the aggregate amount paid to such employees;

"(3) the number of employees employed in such offices who are paid at a rate of basic pay which is less than the minimum rate then currently paid for GS-16 of the General Schedule of section 5332 of title V, and the aggregate amount paid to such employees;

"(4) the number of individuals detailed under section 112 of this title for more than 30 days to each such office, the number of days in excess of 30 each individual was detailed, and the agregate amount of reimbursement made as provided by the provisions of section 112 of this title; and

"(5) the number of individuals whose services as experts or consultants are procured under this chapter for service in any such office, the total number of days employed, and the aggregate amount paid to procure such services.

The information required under this subsection to be in any report

shall be shown both in the aggregate and by office involved.

" GENERAL PAY LIMITATION

" Sec. 114. Notwithstanding any provision of law, other than the provisions of this chapter, no employee of the White House office, the Executive Residence at the White House, the Domestic Policy Staff, or the Office of Administration, nor any employee under the Vice President appointed under section 106 of this title, may be paid at a rate of basic pay in excess of the minimum rate of basic pay then currently paid for GS-16 of the General Schedule of section 5332 of title 5.".

"(b) The table of sections for chapter 2 of title 3, United States Code, is amended by adding at the end thereof the following new items:

"112. Detail of employees of executive departments.

"113. Personnel report.

"114. General pay limitation.".

Sec. 4. Section 103 of title 3, United States Code, relating to travel expenses of the President, is amended by striking out "$40,000" and inserting in lieu thereof "$100,000".

Sec. 5. (a) Section 102 of title 3, United States Code, is amended by striking out " Executive Mansion" and inserting in lieu thereof " Executive Residence at the White House".

(b)(1) Section 109 of title 3, United States Code, is amended--, (A) by striking out from the section caption " EXECUTIVE MANSION"

and inserting in lieu thereof " THE EXECUTIVE RESIDENCE AT

THE WHITE HOUSE", and (B) by striking out from the text " Executive Mansion" each

place it appears and inserting in lieu thereof " Executive Residence at the White House".

(2) The item relating to section 109 in the table of sections for chapter 2 of such title 3 is amended by striking out " Executive Mansion" and inserting in lieu thereof "the Executive Residence at the White House".

(c)(1) Section 110 of title 3, United States Code, is amended--, (A) by inserting in the section caption, immediately before

" WHITE HOUSE" the following: " THE EXECUTIVE RESIDENCE AT THE"; (B) by striking out " President's House" and inserting in lieu

thereof the following: " Executive Residence at the White House";

and (C) by striking out " White House" each place it appears and

inserting in lieu thereof " Executive Residence at the White

House".

(2) The item relating to section 110 in the table of sections for chapter 2 of such title is amended by inserting immediately before " White House" the following: "the Executive Residence at the".

(d) Section 202 of such title is amended by striking out " Executive Mansion and grounds" and inserting in lieu thereof " White House".

Sec. 6. (a) The amendments made by this Act shall apply to any fiscal year which begins on or after October 1, 1978.

(b) In the case of an individual--, (1) who is an employee of the Office of Administration as of the

date of the enactment of this Act, and (2) whose position would be terminated or whose rate of basic

pay would be reduced (but for this subsection) by reason of section 107(b) of title 3, United States Code (as amended by this Act),

such employee may be allowed to continue to hold such position and receive basic pay at the rate in effect on the effective date of this Act during the period which begins on such date and ends 2 years after such date so long as such employee continues as an employee of the Office of Administration.

Approved November 2, 1978.

LEGISLATIVE HISTORY:

HOUSE REPORTS: No. 95 - 979 (Comm. on Post Office and Civil Service) and No. 95 - 1639 (Comm. of Conference).

SENATE REPORTS: No. 95 - 868 (Comm. on Governmental Affairs) and No. 95 - 1258 (Comm. of Conference).

CONGRESSIONAL RECORD, Vol. 124 (1978):

Apr. 4, considered in House and failed of passage.

Apr. 13, considered and passed House.

July 13, 14, considered and passed Senate, amended.

Oct. 7, Senate agreed to conference report.

Oct. 15, House agreed to conference report.

PUBLIC LAW 95-569, 92 STAT. 2444

95th congress, Sec. 1029 November 2, 1978
An Act to authorize the Smithsonian Institution to construct

support museum facilities.

Be it enacted by the Senate and House of Representatives of the United States of American in Congress assembled, That (a) the first section of the Act entitled " An Act to authorize the Smithsonian Institution to plan museum support facilities", approved September 19, 1975 (Public Law 94 - 98), is amended by inserting, "and to construct," after "to prepare plans for".

(b) The first section of such Act is further amended by adding at the end thereof the following new sentence: " No appropriation shall be made to construct the facilities authorized by this Act until the Committee on Public Works and Transportation of the House of Representatives and the Committee on Rules and Administration of the Senate, by resolution approve the final plans and specifications of such facilities.".

(c) Effective October 1, 1979, section 3 of such Act is amended to read as follows:

" Sec. 3. There is authorized to be appropriated to the Smithsonian Institution $21,500,000 to carry out the purposes of this Act. Any portion of the sums appropriated for such purposes may be transferred to the General Services Administration which, in consultation with the Smithsonian Institution, is authorized to enter into contracts and take such other action, to the extent of the sums so transferred to it, as may be necessary to carry out such purposes.".

Approved November 2, 1978.

LEGISLATIVE HISTORY:

HOUSE REPORT No. 95 - 1559 (Comm. on Public Works and Transportation).

SENATE REPORT No. 95 - 783 (Comm. on Rules and Administration).

CONGRESSIONAL RECORD, Vol. 124 (1978):

May 9, considered and passed Senate.

Sept. 25, considered and passed House, amended.

Oct. 2, Senate concurred in House amendments with an amendment.

Oct. 14, House concurred in Senate amendment.

PUBLIC LAW 95-568, 92 STAT. 2425, ECONOMIC OPPORTUNITY AMENDMENTS OF 1978

95 TH CONGRESS, H.R. 7577 NOVEMBER 2, 1978
An Act To amend the Economic Opportunity Act of 1964, and for

other purposes.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That this Act // 42 USC 2701 // may be cited as the " Economic Opportunity Amendments of 1978".

STATEMENT OF PURPOSE

Sec. 2. It is the purpose of this Act // 42 USC 2701 // to extend and revise programs under title I through title IX of the Economic Opportunity Act // 42 USC 2711 - 2995. // of 1964 (hereinafter in this Act referred to as the " Act").

RESEARCH AND DEMONSTRATIONS

Sec. 3. (a) Section 103 of the Act (42 U.S.C. 2713) is amended by striking out", whenever feasible,".

(b) Title I of the Act (42 U.S.C. 2711 et seq.) is amended by adding at the end thereof the following new section:

" AUTHORIZATION OF APPROPRIATIONS

" Sec. 106. // 42 USC 2716. // There is authorized to be appropriated for the purpose of carrying out the provisions of this title $5,000,000 for fiscal year 1979, $6,000,000 for fiscal year 1980, and $8,000,000 for fiscal year 1981.".

URBAN AND RURAL COMMUNITY ACTION PROGRAMS

Sec. 4. (a) Section 210(c) of the Act (42 U.S.C. 2790(c)) is amended by inserting after the first sentence thereof the following new sentences: " The Director, in determining whether a county or multicounty unit is eligible to be served by a community action agency under this title, shall not apply, as the sole criterion for eligibility, any requirement or restriction relating to the number of individuals residing in the county or multicounty unit if at least 20 per centum of the families and unrelated individuals residing in such unit have incomes below the poverty line as determined by the Bureau of Census from the most recent census or survey. No new community action agency may be designated under subsection (a) within a county or multicounty unit if--,

"(1) such county or multicounty unit has a population of less than 50,000;

"(2) such county or multicounty unit was served by an existing community action agency on June 1, 1978; and

"(3) the new community action agency would serve a smaller geographical area than that served by an existing community action agency on June 1, 1978.".

(b) Section 210(d) of the Act (42 U.S.C. 2790(d)) is amended by inserting", in accordance with regulations promulgated by the Director" after "determines".

(c) The first sentence of section 211(b) of the Act (42 U.S.C. 2791 (b)) is amended--,

(1) by inserting", and not less than fifteen," after "fifty-one"; and

(2) by inserting "currently holding office" after "officials" the first place it appears in clause (1).

(d) Section 213 of the Act (2 U.S.C. 2796) is amended by adding at the end thereof the following new subsection:

"(c) The Director shall annually review, and consult with State economic opportunity offices authorized under section 231(a), for the purposes of updating and simplifying, all relevant regulations and guidelines applicable to programs funded under this Act, // 42 USC 2921 // except with respect to programs funded under title V and or title X.

FINANCIAL ASSISTANCE TO COMMUNITY ACTION PROGRAMS

Sec. 5. (a) (1) Section 222(a) of the Act (42 U.S.C. 2809(a)) is amended by inserting after the fourth sentence thereof the following new sentence: " In no event shall the Director provide financial assistance under this title to a public or private nonprofit agency other than a community action agency in an area in which a community action agency exists without prior notification of such financial assistance to the board of such community action agency and to any State economic opportunity office in the State in which financial assistance is provided.".

(2) Section 222(a) of the Act is amended--,

(A) by redesignating paragraph (5) thereof as paragraph (1);

(B) by redesignating paragraph (7) thereof as paragraph (2);

(C) by redesignating paragraph (10) thereof as paragraph (3);

(D) by redesignating paragraph (11) thereof as paragraph (4);

(E) by redesignating paragraph (12) thereof as paragraph (5); and

(F) by redesignating paragraph (13) thereof as paragraph (6).

(b) (1) The last sentence of section 222 (a) (1) of the Act, as so redesignated by subsection (a) (2), is amended by inserting before the period at the end thereof a comma and the following: "or through a local public or private nonprofit organization or agency providing services to migrant or seasonal farmworkers or Native Americans".

(2) The last sentence of section 222 (a) (2) of the Act, as so redesignated by subsection (a) (2), is amended by striking out the period at the end thereof and inserting in lieu thereof a comma and the following: "and other Federal agencies providing services to the elderly poor. The Director shall seek, to the maximum extent feasible, the utilization of agencies funded under setion 221 for the provision of such services available under titles III, V, and VII of the Older Americans Act of 1965, // 42 USC 3021, 3041, 3045a. // or such other Federal programs serving the elderly poor.".

(c) (1) The second sentence of section 222(a) (4) of the Act, as so redesignated by subsection (a) (2), is amended by striking out "serving" and inserting in lieu thereof "or to local public or private non-profit organizations or agencies providing services to migrant or seasonal farmworkers or Native Americans which serve".

(2) The third sentence of section 222(a) (4) of the Act, as so redesignated by subsection (a) (2), is amended by inserting "and programs under the Comprehensive Employment and Training Act of 1973" // 29 USC 801 // after " Mainstream programs".

(d) Section 222(a) (5) of the Act, as so redesignated by subsection (a) (2), is amended by adding the following new sentence at the end thereof: " In carrying out programs to lessen the impact of the high cost of energy to migrants, other seasonally employed farmworkers, and Native Americans, the Director shall utilize local public or private nonprofit organizations or agencies where feasible. Eligibility for any of the programs authorized under this section shall not be based solely on delinquency in payment of fuel bills.".

(e) Section 222(a) (6) of the Act, as so redesignated by subsection (a) (2), is amended to read as follows:

"(6) A program to be known as ' Summer Youth Recreation' designed to provide recreational opportunities for low-income children during the summer months. Funds made available for this paragraph shall be allocated by the Director among community action agencies where feasible, or other public or private nonprofit agencies where no such community action agency exists or is able to administer a program, to provide recreational opportunities for low-income children during the summer months.".

(f) Section 222 (a) of the Act is amended by adding the following new paragraph at the end thereof:

"(7) A program to be known as ' Demonstration Employment and Training Opportunities' designed to establish experimental employment and training programs and projects for low-income persons who are unemployed or underemployed, with special emphasis on youth, the structurally unemployed (sepecially those dependent on public assistance), single heads of households with dependent children, older workers, and veterans. The Director may make grants to community action agencies, community economic development corporations (as designated under title VII),

// 42 USC 2981. //

and public or private nonprofit organizations and agencies for experimental programs and activities including, but not limited to, providing innovative approaches to employment and training programs, which shall, if necessary, make available to participants comprehensive supportive services; developing programs and linkages for low-income persons to achieve satisfactory transition from either unemployment or federally subsidized jobs to employment that is not federally subsidized; and developing training programs, with special consideration for community development corporations, designed to place disadvantaged youth in the private sector. The Director and the Secretary of Labor shall assure a full exchange of information concerning the employment and training programs subject to their respective jurisdictions in order to assure the most effective and responsive demonstration programs and activities. Any employment and training activities assisted in whole or part with funds made available under this paragraph shall be subject to the applicable conditions, labor standards, and benefits set forth in the Comprehensive Employment and Training Act of 1973

// 29 USC 801 //

and other related laws".

(g) The first sentence of section 225 (c) of the Act (42 U.S.C. 2812 (c)) is amended to read as follows: " Unless otherwise provided in this part, financial assistance extended to a community action agency or other agency pursuant to section 221 and section 222 (a) // 42 USC 2808, // shall not exceed 80 per centum of the approved cost of the assisted programs or activities.".

SUPPLEMENTAL PROGRAMS AND ACTIVITIES

Sec. 6. (a) Section 230 of the Act (42 U.S.C. 2824) // 42 USC 2823. // is amended--,

(1) by striking out "may" in the first sentence and inserting in lieu thereof "shall"; and

(2) by striking out "may" in the last sentence and inserting in lieu thereof "shall, to the extent feasible,".

(b) (1) Section 231 (a) (1) of the Act (42 U.S.C. 2824(a) (1)) is amended by inserting before the semicolon at the end thereof a comma and the following: "with priority to programs funded under section 221 and section 222". // 42 USC 2808, 2809. //

(2) Section 231(a) of the Act (42 U.S.C. 2824(a)) is amended--,

(A) in paragraph (3) thereof, by striking out "and" at the end thereof;

(B) in paragraph (4) thereof, by striking out the period at the end thereof and inserting in lieu thereof a semicolon; and

(C) by adding at the end thereof the following new paragraphs:

"(5) to advise the Director and the chief elected official of the State on the status and impact of State and Federal programs and services affecting low-income individuals in the State; and

"(6) to assist programs funded under section 221 and section 222 in coordinating and utilizing services available through other State agencies.".

(c) The third sentence of section 232(b) of the Act (42 U.S.C. 2825 (b)) is amended by striking out "minimizing" and inserting in lieu thereof "preventing".

(d) Part C of title II of the Act (42 U.S.C. 2824 et seq.) // 42 USC 2823. // is amended by striking out section 236 and by redesignating section 237 // 42 USC 2829 2830. // as section 236.

(e) Section 236 of the Act, as so redesignated by subsection (d), is amended by striking out "two" and inserting in lieu thereof "six".

GENERAL AND TECHNICAL PROVISIONS

Sec. 7. (a) Part D of title II of the Act (42 U.S.C. 2832 et seq.) is amended by striking out section 240.

(b) Section 244(2) of the Act (42 U.S.C. 2836(2)) is amended by striking out "$15,000" each place it appears therein and inserting in lieu thereof "$18,000", and by striking out "(particularly in large metropolitan areas)".

(c) Section 245 of the Act (42 U.S.C. 2837) is amended by striking out "eleven" and inserting in lieu thereof "fourteen".

SPECIAL PROGRAMS TO COMBAT POVERTY IN RURAL AREAS

Sec. 8. (a) Title III of the Act (42 U.S.C. 2855 et seq.) is amended--,

(1) by striking out the title " Part A -- Rural Loan Programs";

(2) by striking out part B and C thereof; and

(3) by adding at the end thereof the following new section:

" AUTHORIZATION OF APPROPRIATIONS

" Sec. 307. // 42 USC 2856. // There is authorized to be appropriated for the purpose of carrying out the provisions of this title $3,000,000 for fiscal year 1979, $5,000,000 for fiscal year 1980, and $7,000,000 for fiscal year 1981.".

(b) (1) Section 301 of the Act (42 U.S.C. 2841) is amended by striking out "part" and inserting in lieu thereof "title".

(2) Section 306(d) of the Act (42 U.S.C. 2855(d)) is amended by striking out "part" each place it appears therein and inserting in lieu thereof "title".

ASSISTANCE FOR MIGRANT AND OTHER SEASONALLY EMPLOYED FARMWORKERS AND THEIR FAMILIES

Sec. 9. Title IV of the Act (42 U.S.C. 2701 et seq.) is amended to read as follows:

" TITLE IV -- ASSISTANCE FOR MIGRANT AND OTHER SEASONALLY EMPLOYED FARMWORKERS AND THEIR FAMILIES " STATEMENT OF PURPOSE

" Sec. 401. The purpose of this title // 42 USC 2901 // to assist migrant and seasonal farmworkers and their families to improve their living conditions and develop skills necessary for a productive and self-sufficient life in an increasingly complex and technological society.

" FINANCIAL ASSISTANCE

" Sec. 402. // 42 USC 2902 // (a) The Director may provide financial assistance to assist State and local agencies, private nonprofit institutions, and cooperatives in developing and carrying out programs to fulfill the purpose of this title.

"(b) Programs assisted under this title may include projects or activities--,

"(1) to meet the immediate needs of migrant and seasonal farmworkers and their families, such as day care for children, education, health services, improved housing and sanitation (including the provision and maintenance of emergency and temporary housing and sanitation facilities), legal advice and representation, and consumer training and counseling;

"(2) to promote increased community acceptance of migrant and seasonal farmworkers and their families; and

"(3) to equip unskilled migrant and seasonal farmworkers and members of their families, as appropriate, through education and developmental programs to meet the changing demands in agricultural employment brought about by technological advancement and to take advantage of opportunities available to improve their well-being and self-sufficiency by gaining regular or permanent employment or by participating in available federally assisted employment or training programs.

" LIMITATIONS ON ASSISTANCE

" Sec. 403. // 42 USC 2903. // (a) Assistance may not be extended under this title unless the Director determines that the applicant will maintain its prior level of effort in similar activities.

"(b) The Director shall establish necessary procedures or requirements to assure that programs under this title are carried out in coordination with other programs or activities providing assistance to the persons and groups served.

" TECHNICAL ASSISTANCE, TRAINING AND EVALUATION

" Sec. 404. // 42 USC 2904. // The Director may provide directly or through grants, contracts, or other arrangements, such technical assistance or training of personnel as may be required to implement effectively the purpose of this title.

" Sec. 405. // 42 USC 2905. // The Director shall be responsible for coordinating programs under this title with other Federal programs designed to assist or serve migrant and seasonal farmworkers, for reviewing and monitoring such programs, and for insuring that programs assisted under this title cooperate with and receive the cooperation of programs assisted under section 221 in communities which such programs mutually serve. Programs under this title shall be administered at the national level.

" AUTHORIZATION OF APPROPRIATIONS

" Sec. 406. // 42 USC 2906. // There are authorized to be appropriated for carrying out the purposes of this title $3,000,000 for fiscal year 1979, $5,000,000 for fiscal year 1980 $8,000,000 for fiscal year 1981.".

HEADSTART AND FOLLOW THROUGH

Sec. 10. (a) Section 512 of the Act (42 U.S.C. 2928a) is amended by striking out "1975 through 1977" and inserting in lieu thereof "1979 through 1981".

(b)(1) Section 513(a) of the Act (42 U.S.C. 2928b(a)) is amended to read as follows:

"(a)(1) Of the sums appropriated pursuant to section 512 for any fiscal year beginning after September 30, 1978, the Secretary shall allot such sums in accordance with paragraphs (2) through (4).

"(2) The Secretary shall allot at least 78 percent among the States, in accordance with the latest satisfactory data available, so that equal proportions are distributed on the basis of--,

"(A) the relative number of recipients receiving payments under the program of aid to families with dependent children under a State plan approved under part A oftitle IV of the Social Security Act

// 42 USC 601. //

in each State as compared to all States; and

"(B) the relative number of related children from birth through 5 years of age living with families with incomes below the poverty line in each State as compared to all States.

"(3)(A) Subject to the provisions of subsection (b), the Secretary shall reserve 20 percent of the sums so appropriated for each fiscal year for use in accordance with the following order of priorities:

"(i) funding shall be given with equal consideration to Indian and migrant Headstart programs and to services for handicapped children, except that--,

"(I) there shall be made available, for use by Indian

and

migrant Headstart programs, nationally, no less funds

for

fiscal year 1979 and thereafter than were obligated for

use

by Indian and migrant Headstart programs in fiscal

year

1978, and

"(II) cost-of-living adjustments (which shall, at the

minimum

reflect changes in the Consumer Price Index

published by

the Bureau of Labor Statistics of the United

States Department

of Labor) shall be made with respect to such Indian

and

migrant Headstart programs in fiscal year 1979 and

thereafter;

"(ii) payments shall be made available to each State or territory, if necessary, to maintain such State or territory at a level of funding equal to its level of funding for fiscal year 1978;

"(iii) training and technical assistance activities which, at a minimum, are sufficient to meet the needs associated with program expansion and to foster program and management improvement activities; and

"(iv) subject to the provisions of subparagraph (B), the remainder in accordance with such criteria and procedures as the Secretary shall prescribe by regulation.

"(B) Additional financial assistance for a fiscal year may be provided to a State if funds are available after meeting the requirments of clauses (i) through (iii) of subparagraph (A), for purposes other than assistance to Indian and migrant programs, services for handicapped children, payments under subparagraph (A) (ii), and training and technical assistance activities, only if such State's allotment for such fiscal year under paragraph (2) and subparagraph (A) (ii) is not greater than 175 percent of the amount such State is eligible to receive in such fiscal year under paragraph (2).

"(4) (A) Subject to the provisions of subparagraph (E), the Secretary shall reserve 2 percent of the sums appropriated for--,

"(i) allotment among Guam, American Samoa, the Trust Territory of the Pacific Islands, the Northern Mariana Islands, and the Virgin Islands, according to their respective needs, and

"(ii) the provision of assistance to States in accordance with the provisions of subparagraph (C).

"(B) A State shall receive the total amount of assistance calculated under subparagraph (C) for any fiscal year if--,

"(i) such State receive an allotment under paragraph (2) and paragraph (3) (A) (ii) which is greater than 100 percent and less than 140 percent of the amount such State is eligible to receive under paragraph (2); or

"(ii) such State receives an allotment under paragraph (2) only and such allotment, as compared to the total amount of assistance received by such State in the previous fiscal year, represents an increase which is less than 50 percent of the percentage increase in the appropriation for such fiscal year for which the determination is made as compared to the appropriation for the fiscal year preceding the fiscal year for which the determination is made.

"(C) Except as provided in subparagraph (D), each State specified in subparagraph (B) shall receive a total amount of assistance for any fiscal year which is equal to the sum of--,

"(i) the amount of the allotment received by such State under paragraph (2);

"(ii) the amount of any payments received by such State under paragraph (3) (A) (ii); and

"(iii) an amount equal to the difference between--,

"(I) an amount equal to the sum of the total amount of assistance received by such State for the fiscal year

preceding

the fiscal year for which the determination is made;

and the

amount derived by multiplying the total amount of

assistance

received by such State for the most recent fiscal year

by a

percentage equal to one-half of the percentage increase

in the

appropriation for that fiscal year for which the

determination

is made as compared to the appropriation for the fiscal

year preceding the fiscal year for which the

determination is

made; and

"(II) the total of the payments received by such State under paragraph (2) and paragraph (3) (A) (ii) for the fiscal year for which the determination is made.

in the case of any fiscal year for which there is no increase in the appropriation as compared to the appropriation for the preceding fiscal year, each State specified in subparagraph (B) shall receive a total amount of assistance for such fiscal year which is equal to the total amount of assistance such State received for such preceding fiscal year. In the case of any fiscal year for which there is a reduction in the appropriation as compared to the appropriation for the preceding fiscal year, the Secretary shall make such adjustments in the total amount of assistance which each State otherwise would receive under this subparagraph as may be necessary to assure an equitable distribution of such assistance under this subparagraph.

"(D) For fiscal year 1979, each State described in subparagraph (B) shall receive payments in an amount equal to 69 percent of the percentage increase, up to 9 percent, in the appropriation for fiscal year 1979 over the appropriation for fiscal year 1978, or 50 percent of the percentage increase in the appropriation for fiscal year 1979 over the appropriation for fiscal year 1978, whichever is greater.

"(E)(i) Any funds not allotted according to the provisions of this paragraph for any fiscal year shall be allotted according to the provisions of paragraph (2) to those States which, for such fiscal year, receive an allotment under paragraph (2) only.

"(ii) If sums reserved under subparagraph (A) of this paragraph are insufficient in any fiscal year to carry out the provisions of subparagraphs (A), (B), (C), and (D) of this paragraph, the Secretary shall transfer from sums reserved under paragraph (3) an amount necessary to carry out such provisions."

(2) Section 513 of the Act // 42 USC 2928b. // is amended by redesignating subsections (b), (c), (d), and (e) as subsections (c), (d), (e), and (f), respectively and by inserting the following new subsection after subsection (a):

"(b) Whenever funds appropriated pursuant to section 512 // 42 USC 2928a. // for any fiscal year beginning after September 30, 1978, are equivalent to, or exceed $800,000,000, the Secretary, pursuant to the provision of subsection (a)(3), shall reserve not more than 20 percent of $800,000,000 or 15 percent of the funds so appropriated, whichever is greater."

(c) Section 514 of the Act (42 U.S.C. 2928c) is amended by adding at the end thereof the following new subsection:

"(d) The Secretary shall require that the practice of significantly involving parents and area residents affected by the program in selection of Headstart agencies be continued."

(d) Section 515(b)(1) of the Act (42 U.S.C. 2928d(b)(1)) is amended by inserting "directly participate in decisions that" before "influence".

(e) Section 517(b) of the Act (42 U.S.C. 2928f(b)) is amended by striking out "six" and inserting in lieu thereof "twelve".

(f) Section 518(a) of the Act (42 U.S.C. 2928g(a)) is amended--,

(1) by inserting "(1)" after" (a)";

(2) by striking out " Such" in the second sentence and inserting in lieu thereof " Except as provided in paragraph (2) of this subsection, such";

(3) by redesignating clause (1) and clause (2) as clause (A) and clause (B), respectively;

(4) by striking out "(1)" after "clause" and inserting in lieu thereof "(A)"; and

(5) by adding at the end thereof the following new paragraph:

"(2) Whenever a Headstart program is operated in a community with a population of 1,000 or less individuals and (A) there is no other preschool program in the community, (B) the community is located in a medically underserved area as designated by the Secretary pursuant to section 330(b)(3) of the Public Health Service Act // 42 USC 254c. // and is located in a health manpower shortage area as designated by the Secretary pursuant to sections 332(a)(1) of such Act, // 42 USC 254e. // (C) the community is in a location which, by reason of remoteness, does not permit reasonable access to the types of services described in clauses (A) and (B), and (D) not less than 50 per centum of the families to be served in the community are eligible under the eligibility criteria established by the Secretary under paragraph (1) of this subsection, the Headstart program in each such locality shall establish the criteria for eligibility, except that no child residing in such community whose family is eligible under such eligibility criteria shall, by virtue of such project's eligibility criteria, be denied an opportunity to participate in such program.".

(g) Section 523(b) of the Act // 42 USC 2928l. // (42 U.S.C. 2928( b)) is amended--,

(1) by inserting "(1)" after "subsection (a)";

(2) by striking out "subsection (b)" and inserting in lieu thereof "subsection (a)(2)"; and

(3) by striking out "thirty" the second place it appears therein and inserting in lieu thereof "ninety".

(h) Subsections (c) and (d) of section 523 of the Act (42 U.S.C. 2928(c), (d)) // 42 USC 2928l. // are amended by striking out " Director" each place it appears therein and inserting in lieu thereof " Secretary".

(i) Section 524(b) of the Act (42 U.S.C. 2928m(b)) is amended to read as follows:

"(b) The Secretary shall operate the programs and projects covered by this part in accordance with Headstart performance standards. Any revisions in such standards shall result in standards which are no less comprehensive than those in effect on the date of the enactment of the Economic Opportunity Amendments of 1978. The extent to which such standards have been met shall be considered in deciding whether to renew or supplement financial assistance authorized under this part.".

FOLLOW THROUGH PROGRAM

Sec. 11. (a) Section 551(a)(1) of the Act (42 U.S.C. 2929(a)(1)) is amended by adding at the end thereof the following new sentence: " Other children in kindergarten and primary grades, including such other children enrolled in private nonprofit elementary schools, who were previously enrolled in preschool programs of a compensatory nature which received Federal financial assistance may participate in such Follow Through programs.".

(b) Section 551(a)(3) of the Act is amended by striking out "the Secretary determines", and by inserting "educational, health, nutritional, social, and other" after "comprehensive".

(c) The first sentence of section 552(a) of the Act (42 U.S.C. 2929a(a)) is amended to read as follows:

"(a) There is authorized to be appropriated for carrying out the purposes of this part $70,000,000 for fiscal year 1979, $85,000,000 for fiscal year 1980, and $100,000,000 for fiscal year 1981.".

(d) Part B of title V of the Act (42 U.S.C. 2929 et seq.) is amended--,

(1) by striking out section 553;

// 42 USC 2929b. //

(2) by redesignating section 554

// 42 USC 2929c. // as section 557; and

(3) by inserting after section 552 the following new sections:

" RESEARCH, DEMONSTRATION, AND PILOT PROJECTS

" Sec. 553. // 42 USC 2929b. // (a) The Secretary may provide financial assistance through grants or contracts for research, demonstration, or pilot projects conducted by public and private agencies which are designed to test or assist in the development of new approaches or methods that will aid in overcoming special problems or in otherwise furthering the purposes of this part.

"(b) The Secretary shall establish an overall plan to govern the approval of research, demonstration, or pilot projects and the use of all research authority under this part. Such plan shall set forth specific objectives to be achieved and priorities among such objectives.

" ANNOUNCEMENT OF RESEARCH, DEMONSTRATION, AND PILOT

PROJECT

CONTRACTS

" Sec. 554. // 42 USC 2929b-1. // (a) The Secretary shall make a public announcement concerning--,

"(1) the title, purpose, intended completion date, identity of the grantee or contractor, and proposed cost of any grant or contract with a private or non-Federal public agency or organization for any research, demonstration, or pilot project under this part; and

"(2) the results, findings, data, or recommendations made or reported as a result of such activities.

"(b) The public announcements required by subsection (a)(1) shall be made not later than 30 days of making such grants or contracts, and the public announcements required by subsection (a)(2) shall be made not later than 90 days of the receipt of such results.

"(c) The Secretary shall take necessary action to assure that all studies, proposals, and data produced or developed with Federal funds employed under this part shall become the property of the United States.

"(d) The Secretary shall publish summaries of the results of activities carried out pursuant to this part not later than 90 days after the completion thereof. The Secretary shall submit to the appropriate committees of the Congress copies of all such summaries.

" EVALUATION

" SEC. 555. // 42 USC 2929b-2. // (a) The Secretary shall provide, directly or through grants or contracts, for the continuing evaluation of programs under this part, including evaluations that measure and evaluate the impact of programs authorized by this part, in order to determine their effectiveness in achieving stated goals, their impact on related programs, and their structure and mechanism for delivery of services, including, where appropriate, comparisons with appropriate control groups composed of persons who have not participated in such programs. Evaluations shall be conducted by persons not directly involved in the administration of the program or project evaluation.

"(b) The Secretary shall develop and publish general standards for evaluation of program and project effectiveness in achieving the objectives of this part. The extent to which such standards have been met shall be considered in deciding whether to renew or supplement financial assistance authorized under this part.

"(c) In carrying out evaluations under this part, the Secretary shall, whenever feasible, arrange to obtain the specific views of persons participating in and served by programs and projects assisted under this part about such programs and projects.

"(d) The Secretary shall publish the results of evaluative research and summaries of evaluations of program and project impact and effectiveness not later than 90 days after the completion thereof. The Secretary shall submit to the appropriate committees of the Congress copies of all such research studies and evaluation summaries.

"(e) The Secretary shall take the necessary action to assure that all studies, evaluations, proposals, and data produced or developed with assistance under this section become the property of the United States.

" TECHNICAL ASSISTANCE AND TRAINING

" Sec. 556. // 42 USC 2929b-3. // The Secretary may provide, directly or through grants or other appropriate arrangements (1) technical assistance to Follow Through programs in developing, conducting, and administering programs under this part, and (2) training for specialized or other personnel which is needed in connection with Follow Through programs.".

DAY CARE PROJECTS

Sec. 12. Section 583 of the Act (42 U.S.C. 2933) is amended by striking out "ten" and inserting in lieu thereof "thirteen".

ADMINISTRATION AND COORDINATION

Sec. 13. (a)(1) The first sentence of section 601(c) of the Act (42 U.S.C. 2941(c)) is amended by striking out " Subject to the provisions of subsection (e) of this section, the" and inserting in lieu thereof " The".

(2) The last sentence of section 601(c) of the Act (42 U.S.C. 2941( c)) is amended to read as follows: " The Directpr shall promulgate rules and regulations regarding the final approval of grants and contracts."

(3) Section 601 of the Act (42 U.S.C. 2941) is amended by striking out subsections (e), (f), (g), and (h).

(b) Section 602(d) of the Act (42 U.S.C. 2942(d)) is amended by striking out "with the approval of the President,".

(c) (1) The first sentence of section 605(a) of the Act (42 U.S.C. 2945(a)) is amended by striking out "twenty-one" and inserting in lieu thereof "fifteen".

(2) The second of sentence section 605(a) of the Act (42 U.S.C. 2945(a)) is amended to read as follows: " Of such memebersm five shall be appointed from among poor persons, five shall be appointed from among individuals who represent poor persons, and five shall be appointed from among members of the general public.".

(3) Section 605 of the Act (42 U.S.C. 2965) // 42 USC 2945. // is amended by adding at the end thereof the following new subsection

"(d) The Advisory Council may not make expenditures or incur obligations, from sums available to carry out this section, which exceed $225,000 for fiscal year 1979, $250,000 for fiscal year 1980, and $275,000 for fiscal year 1981."

(d) Section 608 of the Act (42 U.S.C. 2948) is amended by inserting before the period at the end thereof a comma and the following: "and shall include the types of services delivered by community action agencies and other programs funded under this Act".

(e) Part A of title Vi of the Act (42 U.S.C. 2941 et seq.) // 42 USC 2950, 2951. // is amended by redesignating section 610 as section 609 and section 610-1 as section 610.

(f) Section 610(b) of the Act, // 42 USC 2951 // as so redesignated by subsection (e), is amended by striking out "$6,000" and inserting in lieu thereof "$8,000".

(g) Section 615 of the Act (42 U.S.C. 2965) is amended by striking out "eleven" and inserting in lieu thereof "fourteen".

(h) Section 620 of the Act (42 U.S.C. 2970) is amended by striking out the last sentence thereof.

(i) Part A of title VI of the Act (42 U.S.C. 2940 et seq.) is amended by striking out section 621, // 42 USC 2971, 2971a-2971g // and by redesignating section 622 through section 628 as section 621 through section 627, respectively.

(j) Section 632(3) of the Act (42 U.S.C. 2974(3)) is amended by inserting after "time." the following new sentence: " The Director shall consult with community action agencies and State offices of economic opportunity in the development of such plan."

(k) Part B of title VI of the Act (42 U.S.C. 2972 et seq.) // 42 USC 2980. // is amended by redesignating section 638 as section 639 and by inserting after section 637 the following new section:

" REGIONAL OFFICES

" Sec. 638. // 42 USC 2979a // (a) The Director may utilize regional Community Serices Administration offices for the purpose of--,

"(1) carrying out the national responsibilities and directives delegated to them;

"(2) processing and finalizing grants and contracts authorized under this Act;

"(3) monitoring and evaluating programs funded under this Act within that designated region;

"(4) monitoring and evaluating on an annual basis all relevant regulations and guidelines applicable to programs funded under this Act within that designated region; and

"(5) providing technical assistance to local community action agencies and other programs funded under this Act.

"(b) The Director shall monitor and evaluate at least annually the activities of regional offices as described in subsection (a).".

COMMUNITY ECONOMIC DEVELOPMENT

Sec. 14. (a) Section 703 of the Act (42 U.S.C. 2981(b)) // 42 USC 2981b. // is amended to read as follows:

" AUTHORIZATION OF APPROPRIATIONS

" Sec. 703. For the purpose of carrying out this title, there is authorized to be appropriated $70,000,000 for fiscal year 1979, $85,000,000 for fiscal year 1980, and $105,000,000 for fiscal year 1981. Any sums appropriated under this section shall remain available until expended.".

(b) Title VII of the Act (42 U.S.C. 2981 et seq.) is amended by inserting after section 703 the following new section:

" ADVISORY COMMUNITY INVESTMENT BOARDS

" Sec. 704. // 42 USC 2981c. // (a) The President is authorized to establish a National Advisory Community Investment Board (hereinafter in this section referred to as the ' Investment Board'). Such Investment Board shall be composed of fifteen members appointed, for staggered terms and without regard to the civil service laws, by the President, in consultation with the Director. Such members shall be representative of the investment and business communities and appropriate fields of endeavor related to this title. The Investment Board shall meet at the call of the chairperson, but not less often than three times each year. The Director and the administrator of community economic development programs shall be ex officio members of the Investment Board.

"(b) The Investment Board shall promote cooperation between private investors and businesses and community development corporation projects through--,

"(1) advising the Director and the community development corporations on ways to facilitate private investment;

"(2) advising businesses and other investors of opportunities in community development corporation projects; and

"(3) advising the Director, Community development corporations, and private investors and businesses of ways in which they might engage in mutually beneficial efforts.

"(c) The governing body of each Community Development Corporation may establish an advisory community investment board composed of not to exceed 15 members who shall be appointed by the governing body after consultation with appropriate local officials. Each such board shall promote cooperation between private investors and businesses and the governing body of the Community Development Corporation through--,

"(1) advising the governing body on ways to facilitate private investors;

"(2) advising businesses and other investors of opportunities in Community Development Corporation projects; and

"(3) advising the governing body, private investors, and businesses

of ways in which they might engage in mutually beneficial efforts."

(c) Section 712(a) of the Act (42 U.S.C. 2982a(a)) is amended--,

(1) by striking out "economic and" in paragraph (1), and by inserting "and commercial" after "business";

(2) by inserting "physical" after "community" in paragraph (2);

(3) by inserting before the semiclon in paragraph (3) a comma and the following: "and in section 222(a) (7) of this Act"

// 42 USC 2809. //

(4) by striking out "economic" in paragraph (4) and inserting in lieu thereof "business and commercial"; and

(5) by inserting "recreation services," after "energy conservation,"

in paragraph (4).

(d) Section 713(b) of the Act (42 U.S.C. 2982b(b)) is amended by striking out "an" and inserting in lieu thereof "a substantial".

(e) Section 713 of the Act (42 U.S.C. 2982b) is amended by adding at the end thereof the following new subsection:

"(d) Financial assistance for commercial development under this part shall not be extended until the community economic development program that has applied for assistance under this title has specified in some detail its development goals and its development timetable. The Director, in providing continued financial assistance to a community economic development program, shall give serious consideration to the experience that program has had in meeting development goals or in adhering to development timetables.".

(f) Section 714 of the Act (42 U.S.C. 2982c) is amended to read as follows:

" FEDERAL SHARE

" Sec. 714. (a) (1) Assistance provided under this title // 42 USC 2982c. //

to any program described in section 712(a) shall not exceed 90 per centum of the cost of such program including costs of administration unless the Director determines that the assistance in excess of such percentage is required in furtherance of the purposes of this title. Non-Federal contributions may be in cash or in kind, fairly evaluated, including but not limited to plant, equipment, and services.

"(2) The assistance referred to in paragraph (1) shall be made available (A) for deposit to the order of grantees which have demonstrated successful program performance, under conditions which the Director deems appropriate, within thirty days following approval of the grant agreement by the Director and such grantee, or (B) whenever the Director deems appropriate, in accordance with applicable rules and regulations prescribed by the Secretary of the Treasury, and including any other conditions which the Director deems appropriate, within 30 days following approval of the grant agreement by the Director and such grantee.

"(b) Property acquired as a result of capital investments made by any community development corporation with funds granted as its Federal share of the cost of programs carried out under this title, and the proceeds from such property, shall become the property of the community development corporation and shall not be considered to be Federal property. The Federal Government retains the right to direct that on severance of the grant relationship the assets purchased with grant funds shall continue to be used for the original purpose for which they were granted.".

(g) Section 722(b) of the Act (42 U.S.C. 2983) // 42 USC 2983a. // is amended by inserting "or local public and private nonprofit organizations or agencies" after "local cooperative associations".

(h) The first sentence of section 731(a) of the Act (42 U.S.C. 2984 (a)) is amended to read as follows: " The Director is authorized to make or guarantee loans (either directly or in cooperation with banks or other organizations through agreements to participate on an immediate or deferred basis) to community development corporations, to families and local cooperatives and the designated supportive organizations of cooperatives eligible for financial assistance under this title, to community action agencies and other community-based organizations eligible for financial assistance under title II of this Act // 42 USC 2781. // or to public and private nonprofit organizations or agencies, for business facilities and community development projects, including community development credit unions, which the Director determines will carry out the purposes of this part.".

(i) Section 732(b) of the Act (42 U.S.C. 2984a(b)) is amended by striking out "1975" and inserting in lieu thereof "1979".

(j) Section 742(a) (2) of the Act (42 U.S.C. 2985a(a) (2)) is amended--,

(1) by striking out "prescribe such" and inserting in lieu thereof "promulgate";

(2) by striking out "as may be necessary and appropriate"; and

(3) by inserting ", including ,but not limited to, programs under section 8(a) of the Small Business Act,"

// 15 USC 637. //

before the period.

(k) Title VII of the Act (42 U.S.C 2981 et seq.) is amended by striking out section 745 and by redesignating sections 746, 747, 748, and 749 as sections 745, 746, 747, and 748, respectively.

(1) Section 746(b) of the Act, // 42 USC 2985e // as so redesignated by subsection (k), is amended by inserting "and demonstration projects" after "research".

NATIVE AMERICAN PROGRAMS

Sec. 15. Section 814 of the Act (42 U.S.C. 2992d) is amended by striking out "1975 through 1977" and inserting in lieu thereof "1979 through 1981".

EVALUATION

Sec. 16. Title IX of the Act (42 U.S.C. 2995 et seq.) is amended by adding at the end thereof the following new section:

" AUTHORIZATION OF APPROPRIATIONS

" Sec. 904. // 42 USC 2995c. // There is authorized to be appropiated for the purpose of carrying out the provisions of this title $4,000,000 for fiscal year 1979, $7,000,000 for fiscal year 1980, and $10,000,000 for fiscal year 1981.".

TECHNICAL AMENDMENTS

Sec. 17. (a) (1) Section 2 of the Act (42 U.S.C. 2701) is amended by striking out "his capabilities" and inserting in lieu thereof "the capabilities of such individual".

(2) Section 102(c) of the Act // 42 USC 2712. // is amended by striking out "him" the first place it appears therein and inserting in lieu thereof "such chief executive officer", and by striking out "him" the last place it appears therein and inserting in lieu thereof "the Director".

(3) (A) Section 210(d) of the Act (42 U.S.C. 2790(d)) is amended by striking out "he" and inserting in lieu thereof "the Director".

(B) Section 210(f) of the Act is amended--,

(i) by striking out " In carrying out his responsibilities under this part the Director" and inserting in lieu thereof " The Director, in carrying out the responsibilities of the Director under this part,"; and

(ii) by striking out "him, as he" and inserting in lieu thereof "the Director, as the Director".

(4) Section 211(d) (1) of the Act (42 U.S.C. 2791(d) (1)) is amended by striking out "he" and inserting in lieu thereof "the Director".

(5) Section 213(b) of the Act (42 U.S.C. 2796(b)) is amended by striking out " He" and inserting in lieu thereof " The Director".

(6)(A) Section 221(a) of the Act (42 U.S.C. 2808(a)) is amended by striking out " He" and inserting in lieu thereof " The Director".

(B) Section 221(b) of the Act (42 U.S.C. 2808(b)) is amended by striking out "he" each place it appears therein and inserting in lieu thereof "the Director".

(C) Section 221(d) of the Act (42 U.S.C. 2808(d)) is amended by striking out " He" and inserting in lieu thereof " The Director".

(D) Section 221(e) of the Act (42 U.S.C. 2808(e)) is amended by striking out "he" each place it appears therein and inserting in lieu thereof "the Director".

(7)(A) The second sentence of section 222(a) of the Act (42 U.S.C. 2809(A)) is amended by striking out "him" and inserting in lieu thereof "the Director".

(B) The fourth sentence of section 222(a) of the Act (42 U.S.C.2809( A)) is amended by striking out "he" and inserting in lieu thereof "the Director".

(C) Section 222(a) (4) of the Act, as so redesignated by section 6( a) (2), is amended--.

(i) by striking out "he" each place it appears therein and inserting in lieu thereof "the Director"; and

(ii) by striking out "his adjusted family income" and inserting in lieu thereof "the adjusted family income of such applicant".

(8) (A) Section 225(a) of the Act (42 U.S.C. 2812(a)) is amended by striking out " He" and inserting in lieu thereof " The Director", and by striking out "he" and inserting in lieu thereof "the Director".

(B) Section 225(b) of the Act (42 U.S.C. 2812(b)) is amended by striking out "he" and inserting in lieu thereof "the Director". (C) Section 225(c) of the Act 742 U.S.C. 2812(c)) is amended by striking out "he" and inserting in lieu thereof "the Director".

(D) Section 225(d) of the Act (42 U.S.C. 2812(d)) is amended by striking out "satisfies himself" and inserting in lieu thereof "is satisfied".

(9) Section 227(c) of the Act (42 U.S.C. 2814(c)) is amended by striking out "he" and inserting in lieu thereof "the Director".

(10) Section 231(d) of the Act (42 U.S.C. 2824(d)) is amended--,

(A) by striking out "he" each place it appears therein and inserting in lieu thereof "the Director";

(B) by striking out "his findings" and inserting in lieu thereof "the findings of the Director"; and

(C) by striking out "him" and inserting in lieu thereof "the Director".

(11) (A) Section 232(a) of the Act (42 U.S.C. 2825(a)) is amended by striking out " He" and inserting in lieu thereof " The Director".

(B) Section 232(d) of the Act (42 U.S.C. 2825(d)) is amended by striking out "him" and inserting in lieu thereof "the Director".

(12) Section 235(b) of the Act (42 U.S.C. 2828(b)) is amended by striking out "satisfies himself" and inserting in lieu thereof "is satisfied".

(13) (A) Section 241(b) of the Act (42 U.S.C. 2833(b)) is amended by striking out "he" and inserting in lieu thereof "the Director".

(B) Section 241(c) of the Act (42 U.S.C. 2833(c)) is amended by striking out "he" and inserting in lieu thereof "the Director".

(14) Section 242 of the Act (42 U.S.C. 2834) is amended by striking out "him" and inserting in lieu thereof "the Director".

(15) (A) Section 243(c) of the Act (42 U.S.C. 2835(c)) is amended by striking out "he" and inserting in lieu thereof "the Director".

(B) Section 243(d) of the Act (42 U.S.C. 2835(d)) is amended by striking out "he" and inserting in lieu thereof "the Director".

(16) (A) Section 244(4) of the Act (42 U.S.C. 2836(4)) is amended--,

(i) in subparagraph (A) thereof, by striking out "his or her" and inserting in lieu thereof "the";

(ii) in subparagraph (A) thereof, by inserting "of such individual" after "religious beliefs"; and

(iii) in subparagraph (B) thereof, by striking out "he or she" and inserting in lieu thereof "such individual".

(B) Section 244(7) of the Act (42 U.S.C. 2836(7)) is amended--,

(i) by striking out "he" each place it appears therein and inserting in lieu thereof "the Director";

(ii) by striking out "him" and inserting in lieu thereof "the Director"; and

(iii) by striking out "his judgment" and inserting in lieu thereof the judgment of the Director".

(17 Section 513(b) of the Act (42 U.S.C. 2928](b)) is amended by striking out "he" and inserting in lieu thereof "the Secretary".

(18) Section 516 of the Act (42 U.S.C. 2928e) is amended by striking out "him" and inserting in lieu thereof "the Secretary".

(19) (A) Section 517(b) of the Act (42 U.S.C. 2928f(b)) is amended--,

(i) by striking out "he" each place it appears therein and inserting in lieu thereof "the Secretary";

(ii) by striking out "him" and inserting in lieu thereof "the Secretary"; and

(iii) by striking out "his judgment" and inserting in lieu thereof "the judgment of the Secretary".

(B) Section 517(c) of the Act (42 U.S.C. 2928f(c)) is amended by striking out " He" and inserting in lieu thereof " The Secretary".

(20) Section 519(1) of the Act (42 U.S.C. 2928h(1)) is amended by striking out "he" and inserting in lieu thereof "the Secretary".

(21) Section 525(a) of the Act (42 U.S.C. 2928n(a)) is amended by striking out "he" and inserting in lieu thereof "the Secretary".

(22) Section 551(a) of the Act (42 U.S.C. 2929(a) (2) is amended by striking out "he" each place it appears therein and inserting in lieu thereof "the Secretary".

(23) Section 552(b) of the Act (42 U.S.C. 2929a(b)) is amended by striking out "he" and inserting in lieu thereof "the Secretary".

(24) Section 582(e) of the Act (42 U.S.C. 2932(e)) is amended by striking out "he" and inserting in lieu thereof "the Secretary".

(25) (A) Section 601(d)(1) of the Act (42 U.S.C. 2941(d)(1) is amended by striking out "his designee" and inserting in lieu thereof "the designee of the Director".

(B) Section 601(d) (3) of the Act (42 U.S.C. 2941(d)(3)) is amended by striking out "his official capacity" and inserting in lieu thereof "the official capacity of such officer".

(26)(A) That portion of section 602 of the Act (42 U.S.C. 2942) which precedes paragraph (a) of such section is amended--,

(i) by striking out "him" and inserting in lieu thereof "the Director"; and

(ii) by striking out "his functions" and inserting in lieu thereof

"the functions of the Director".

(B) Section 602(c) of the Act (42 U.S.C. 2942(c)) is amended--,

(i) by striking out "he" and inserting in lieu thereof "the Director";

(ii) by striking out "him" and inserting in lieu thereof "the Director"; and

(iii) by striking out "his functions" and inserting in lieu thereof "the functions of the Director".

(C) Section 602(d) of the Act (42 U.S.C. 2942(d)) is amended--,

(i) by striking out "his functions" and inserting in lieu thereof "the functions of the Director"; and

(ii) by striking out "his powers" and inserting in lieu thereof "the powers of the Director".

(D) Section 602(h) of the Act (42 U.S.C. 2942(h)) is amended by striking out "he" and inserting in lieu thereof "the Director".

(E) Section 602(i) of the Act (42 U.S.C. 2942ni)) is amended by striking out "he" and inserting in lieu thereof "the Director".

(F) Section 602(k) of the Act (42 U.S.C. 2942nk)) is amended by striking out "him" each place it appears therein and inserting in lieu thereof "the Director".

(G) Section 602(1) of the Act (42 U.S.C. 2942n1)) is amended by striking out "him" each place it appears therein and inserting in lieu thereof "the Director".

(H) (i) Section 602(m) (2) of the Act (42 U.S.C. 2942(m) (2)) is amended by striking out "him" and inserting in lieu thereof "the Director".

(ii) Section 602(m) (2) (B) of the Act (42 U.S.C. 2942(m)(2) (B)) is amended by striking out "his intention" and inserting in lieu thereof "the intention of the Director".

(I) Section 602(n) of the Act (42 U.S.C. 2942(n)) is amended by striking out "he" and inserting in lieu thereof "the Director".

(27) Section 603(c) of the Act (42 U.S.C. 2943(c)) is amended by striking out "in his" and inserting in lieu thereof "while acting in an".

(28) Section 606(c) of the Act (42 U.S.C. 2946(c)) is amended by striking out "he" and inserting in lieu thereof "the Comptroller General".

(29) Section 609 of the Act, // 42 USC 2950. // as so redesignated in section 13(e), is amended by striking out "his responsibilities" and inserting in lieu thereof "the responsibilities of the Director".

(30) Section 610(b) of the Act, // 42 USC 2951. // as so redesignated in section 13(e), is amended--,

(A) by striking out "he" and inserting in lieu thereof "such person"; and

(B) by striking out "his immediately preceding employment" and inserting in lieu thereof "the immediately preceding employment

of such person".

(31) Section 611 of the Act (42 U.S.C. 2961) is amended--,

(A) by striking out "his poverty" and inserting in lieu thereof "the poverty of such person";

(B) by striking out "his lack of income" and inserting in lieu thereof "the lack of income of such person";

(C) by striking out "his refusal" and inserting in lieu thereof "the refusal of such person"; and

(D) by striking out "his health, age, education, and ability" and inserting in lieu thereof "the health, age, education, and ability of such person".

(32) Section 627 of the Act, // 42 USC 2971g. // as so redesignated in section 13(i), is amended--,

(A) by striking out "or his delegate" each place it appears therein; and

(B) by striking out "him" and inserting in lieu thereof "the Director".

(33)(A) Section 631(a) of the Act (42 U.S.C. 2973(a)) is amended by striking out "his stead in the event of his unavoidable absence" and inserting in lieu thereof "place of such member in the event of the unavoidable absence of such member".

(B) Section 631(c) of the Act (42 U.S.C. 2973(c)) is amended--,

(i) by striking out "him" and inserting in lieu thereof "the Executive Secretary"; and

(ii) by striking out "his duties" and inserting in lieu thereof "the duties of the Executive Secretary".

(34)(A) That portion of section 632 fo the Act (42 U.S.C. 2974) which precedes paragraph (1) is amended by striking out "his other powers" and inserting in lieu thereof "the other powers of the Director".

(B) Section 632(1) of the Act (42 U.S.C. 2974(1)) is amended by striking out "his own initiative" and inserting in lieu thereof "the initiative of the Director".

(35) Section 635(b) of the Act (42 U.S.C. 2977(b)) is amended by striking out " He" and inserting in lieu thereof " The Director".

(36) That portion of section 713(a) of the Act (42 U.S.C. 2982b(a)) which precedes paragraph (1) is amended by striking out "he" each place it appears therein and inserting in lieu thereof "the Director".

(37)(A) Section 731(b) of the Act (42 U.S.C. 2984(b)) is amended by striking out "him" and inserting in lieu thereof "the Director", and by striking out "he" and inserting in lieu thereof "the Director".

(B) Section 731(c)(3) of the Act (42 U.S.C. 2984(c)(3)) is amended by striking out "he" and inserting in lieu thereof "the Director".

(39) (A) Section 803(b) of the Act (42 U.S.C. 2991b(b)) is amended by striking out "he" and inserting in lieu thereof "the Secretary".

(B) Section 803(c) of the Act (42 U.S.C. 2991b(c)) is amended by striking out "he" and inserting in lieu thereof "the Secretary".

(40)(A) Section 807(b) of the Act (42 U.S.C. 2991f(b)) is amended by striking out "his decision" and inserting in lieu thereof "the decision of the Secretary".

(B) Section 807(c) of the Act (42 U.S.C. 2991f(c)) is amended by striking out "his decision" and inserting in lieu thereof "the decision of the Secretary".

(41) Section 812(a) of the Act (42 U.S.C. 2992b(a)) is amended--,

(A) by striking out "his functions, powers, and duties" and inserting in lieu thereof "the functions, powers, and duties of the Secretary"; and

(B) by striking out "he" and inserting in lieu thereof "the Secretary".

(42)(A) Section 901(a)(2) of the Act (42 U.S.C. 2995(a)(2)) is amended by striking out "his responsibilities" and inserting in lieu thereof "the responsibilities of the Director".

(B) Section 901(a)(3) of the Act (42 U.S.C. 2995(a)(3)) is amended by striking out "he" and inserting in lieu thereof "the Director".

(43) Section 902(a) of the Act (42 U.S.C. 2995a(a)) is amended by striking out "him" and inserting in lieu thereof "the Director".

(b) The second sentence of section 225(c) of the Act (42 U.S.C. 2812(c)) is amended by striking out "title, non-Federal" and inserting in lieu thereof "title. Non-Federal".

Approved November 2, 1978.

LEGISLATIVE HISTORY:

HOUSE REPORTS: No. 95 - 1151 (Comm. on Education and Labor) and No. 95 - 1766 (Comm. of Conference).

SENATE REPORT No. 95 - 892, accompanying S. 2090 (Comm. on Human Resources).

CONGRESSIONAL RECORD, Vol. 124(1978):

July 24, 26, considered and passed House.

Aug. 1, 2, S. 2090 considered and passed Senate; proceedings vacated, and H.R. 7577, amended, passed in lieu. Oct. 15, House agreed to conference report.

Oct. 15, Senate agreed to conference report.

PUBLIC LAW 95-567, 92 STAT. 2405, PUBLIC TELECOMMUNICATIONS FINANCING ACT OF 1978.

95th CONGRESS, H.R. 12605, NOVEMBER 2, 1978.
AN ACT To amend the Communications Act of 1934 to extend and

improve the provisions

of such Act relating to long-term financing for the

Corporation for Public

Broadcasting and relating to certain grant programs

for public telecommunications,

and for other purposes.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That this Act may be cited as the " Public Telecommunications Financing Act of 1978".

TITLE i-- CONSTRUCTION AND PLANNING OF FACILITIES DECLARATION OF PURPOSE

Sec. 101. Section 390 of the Communications Act // 47 USC 390. // of 1934 is amended to read as follows:

" DECLARATION OF PURPOSE

" Sec. 390. The purpose of this subpart is to assist, through matching grants, in the planning and construction of public telecommunications facilities in order to achieve the following objectives: (1) extend delivery of public telecommunications services to as many citizens of the United States as possible by the most efficient and economical means, including the use of broadcast and nonbroadcast technologies; (2) increase public telecommunications services and facilities available to, operated by, and owned by minorities and women; and (3) strengthen the capability of existing public television and radio stations to provide public telecommunications services to the public."

AUTHORIZATION OF APPROPRIATIONS

Sec. 102. Section 391 of the Communications Act // 47 USC 391. // of 1934 is amended to read as follows:

" AUTHORIZATION OF APPROPRIATIONS

" Sec. 391. There are authorized to be appropriated $40,000,000 for each of the fiscal years 1979, 1980, and 1981, to be used by the Secretary of Commerce to assist in the planning and construction of public telecommunications facilities as provided in this subpart. Sums appropriated under this subpart for any fiscal year shall remain available until expended for payment of grants for projects for which applications approved by the Secretary pursuant to this subpart have been submitted within such fiscal year. Sums appropriated under this subpart may be used by the Secretary to cover the cost of administering the provisions of this subpart."

CONSTRUCTION AND PLANNING

Sec. 103. (a) Section 392 of the Communications Act of 1934 is amended to read as follows:

" GRANTS FOR CONSTRUCTION AND PLANNING

" Sec. 392. (a) For each project for the construction of public telecommunications facilities there shall be submitted to the Secretary an application for a grant containing such information with respect to such project as the Secretary may require, including the total cost of such project, the amount of the grant requested for such project, and a 5-year plan outlining the applicant's projected facilities requirements and the projected costs of such facilities requirements. each applicant shall also provide assurances satisfactory to the Secretary that--,

"(1) the applicant is (A) a public broadcast station; (B) a noncommercial telecommunications entity; (C) a system of public telecommunications entities; (D) a nonprofit foundation, corporation, institution, or association organized primarily for educational or cultural purposes; or (E) a State or local government (or any agency thereof), or a political or special purpose subdivision of a State;

"(2) the operation of such public telecommunications facilities will be under the control of the applicant;

"(3) necessary funds to construct, operate, and maintain such public telecommunications facilities will be available when needed;

"(4) such public telecommunications facilities will be used only for the provision of public telecommunications services;

"(5) the applicant has participated in comprehensive planning for such public telecommunications facilities in the area which the applicant proposes to serve, and such planning has included an evaluation of alternate technologies and coordination with

State educational television and radio agencies, as appropriate;

and

"(6) the applicant will make the most efficient use of the grant.

(b) Upon approving any application under this section with respect to any project for the construction of public telecommunications facilities, the Secretary shall make a grant to the applicant in an amount determined by the Secretary, except that such amount shall not exceed 75 percent of the amount determined by the Secretary to be the reasonable and necessary cost of such project.

"(c) The Secretary may provide such funds as the Secretary deems necessary for the planning of any project for which construction funds may be obtained under this section. An applicant for a planning grant shall provide such information with respect to such project as the Secretary may require and shall provide assurances satisfactory to the Secretary that the applicant meets the eligible requirements of subsection (a) to receive construction assistance.

"(d) Any studies conducted by or for any grant recipient under this section shall be provided to the Secretary, if such studies are conducted through the use of funds received under this section.

"(e) The Secretary shall establish such rules and regulations as may be necessary to carry out this subpart, including rules and regulations relating to the order of priority in approving applications for construction projects and relating to determining the amount of each grant for such projects.

"(f) In establishing criteria for grants pursuant to section 393 and in establishing procedures relating to the order of priority established in subsection (e) in approving applications for grants, the Secretary shall give special consideration to applications which would increase minority and women's ownership of, operation of, and participation in public telecommunications entities. The Secretary shall take affirmative steps to inform minorities and women of the availability of funds under this subpart, and the localities where new public telecommunications facilities are needed, and to provide such other assistance and information as may be appropriate.

"(g) If, within 10 years after completion of any project for construction of public telecommunications facilities with respect to which a grant has been made under this section--,

"(1) the applicant or other owner of such facilities ceases to be an agency, institution, foundation, corporation, association, or other entity described in subsection (a) (1); or

"(2) such facilities cease to be used only for the provision of public telecommunications services (unless the Secretary determines,

in accordance with regulations, that there is good cause

for releasing the applicant or other owner from the obligation to do so);

the United States shall be entitled to recover from the applicant or other owner of such facilities the amount bearing the same ratio to the value of such facilities at the time the applicant ceases to be such an entity or at the time of such determination (as determined by agreement of the parties or by action brought in the United States district court for the district in which such facilities are situated), as the amount of the Federal participation bore to the cost of construction of such facilities.

"(h) Each recipient of assistance under this subpart shall keep such records as may be reasonably necessary to enable the Secretary to carry out the functions of the Secretary under this subpart, including a complete and itemized inventory of all public telecommunications facilities under the control of such recipient, and records which fully disclose the amount and the disposition by such recipient of the proceeds of such assistance, the total cost of the project in connection with which such assistance is given or used, the amount and nature of that portion of the cost of the project supplied by other sources, and such other records as will facilitate an effective audit.

"(i) The Secretary and the Comptroller General of the United States, or any of their duly authorized representatives, shall have access for the purpose of audit and examination to any books, documents, papers, and records of any recipient of assistance under this subpart that are pertinent to assistance received under this subpart."

(b)(1) The provisions of section 392(g) of the Communications Act of 1934, as added by subsection (a), shall apply to any grant made under section 392 of such Act before, on, or after the date of the enactment of this Act. Any authority and responsibilities of the Secretary of Health, Education, and Welfare regarding the administration of such grants are hereby transferred to the Secretary of Commerce.

(2) Subject to the provisions of section 202 of the Budget and Accounting Procedures Act of 1950 (31 U.S.C. 581c), the following are hereby transferred to the Secretary of Commerce for appropriate allocation--,

(A) the personnel employed in connection with or in support of, or as an integral part of the mission of, the functions transferred to the Secretary of Commerce from the Secretary of Health, education, and Welfare by paragraph (1); and

(B) the assets, liabilities, contracts, property, records, and unexpended balances of appropriations, allocations, and other funds employed, held, used, arising from, available for, or to be made available for, or in connection with, the functions described in subparagraph (A).

Unexpended funds transferred pursuant to this paragraph shall be used only for the purposes for which the funds originally were authorized and appropriated.

(3) The Director of the Office of Management and Budget, in consultation

with the Secretary of Commerce and the Secretary of Health,

Education, and Welfare, shall--,

(A) make such determinations as may be necessary with regard to the transfer of the functions transferred to the Secretary of Commerce from the Secretary of Health, Education, and Welfare by paragraph (1); and

(B) make such additional incidental dispositions of personnel, assets, liabilities, contracts, property, records, and unexpended balances of appropriations, allocations, and other funds employed, held, used, arising from, available for, or to be made available for, or in connection with, the functions described in subparagraph (A);

as the Director may deem necessary to accomplish the purposes of this Act and the amendments made by this Act. CRITERIA FOR APPROVAL AND EXPENDITURES BY SECRETARY OF COMMERCE

Sec. 104. Section 393 of the Communications Act of 1934 is amended to read as follows: " CRITERIA FOR APPROVAL AND EXPENDITURES BY SECRETARY OF COMMERCE

" Sec. 393. (a) The Secretary, in consultation with the Corporation, public telecommunications entities, and as appropriate with others, shall establish criteria for making construction and planning grants. Such criteria shall be consistent with the objectives and provisions set forth in this subpart, and shall be made available to interested parties upon request.

"(b) The Secretary shall base determinations of whether to approve applications for grants under this subpart, and the amount of such grants, on criteria developed pursuant to subsection (a) and designed to achieve--,

"(1) the provision of new telecommunications facilities to extend service to areas currently not receiving public telecommunications services;

"(2) the expansion of the service areas of existing public teleommunications entities;

"(3) the development of public telecommunications facilities owned by, operated by, and available to minorities and women; and

"(4) the improvement of the capabilities of existing public

broadcast stations to provide public telecommunications services.

"(c) Of the funds appropriated pursuant to section 391 for any fiscal year, not less than 75 percent shall be available to extend delivery of public telecommunications services to areas not receiving such services through grants for facilities of new and existing public telecommunications entities, and preoperational expenses associated with such facilities. In choosing among applicants for grants, the Secretary shall compare the advantages of alternate technologies on the basis of costs and benefits.

"(d) Of the sums appropriated pursuant to section 391 for any fiscal year, a substantial amount shall be available for the expansion and development of noncommercial radio broadcast station facilities.".

Sec. 105. Section 394 of the Communications Act of 1934 is amended to read as follows:

" LONG - RANGE PLANNING FOR FACILITIES

" Sec. 394. (a) The Secretary, in consultation with the Corporation, public telecommunications entities, and as appropriate with other parties, shall develop a long-range plan to accomplish the objectives set forth in section 390. Such plan shall include a detailed 5-year projection of the broadcast and nonbroadcast public telecommunications facilities required to meet such objectives, and the expenditures necessary to provide such facilities.

"(b) The plan required in subsection (a) shall be updated annually, and a summary of the activities of the Secretary in implementing the plan, shall be submitted concurrently to the President and the Congress not later than the 31st day of December of each year.".

MISCELLANEOUS PROVISIONS

Sec. 106. (a) The heading for part IV of title III of the Communications Act of 1934 is amended to read as follows: " PART IV-- ASSISTANCE FOR PUBLIC TELECOMMUNICATIONS FACILITIES;

TELECOMMUNICATIONS DEMONSTRATIONS; CORPORATION FOR PUBLIC

BROADCASTING".

(b) The heading for subpart A of part IV of title III of the Communications Act of 1934 is amended to read as follows: " Subpart A-- Assistance for Public Telecommunications Facilities".

(c) The position of Deputy Assistant Secretary of Commerce for Communications and Information, established in Department of Commerce Organization Order Numbered 10 - 10 (effective March 26, 1978), shall be compensated at the rate of pay in effect from time to time for level V of the Executive Schedule under section 5316 of title 5, United States Code. TITLE II-- TELECOMMUNICATIONS DEMONSTRATIONS

ASSISTANCE FOR DEMONSTRATION PROJECTS

Sec. 201. Part IV of title III of the Communications Act of 1934 is amended by striking out section 392 A and section 395, by redesignating subpart B and subpart C as subpart C and subpart D, respectively, and by inserting after subpart A the following new subpart:

" Subpart B--Telecommunications Demonstrations " ASSISTANCE FOR DEMONSTRATION PROJECTS

" Sec. 395. (a) It is the purpose of this subpart to promote the development of nonbroadcast telecommunications facilities and services for the transmission, distribution, and delivery of health, education, and public or social service information. The Secretary is authorized, upon receipt of an application in such form and containing such information as he may by regulation require, to make grants to, and enter into contracts with, public and private nonprofit agencies, organizations, and institutions for the purpose of carrying out telecommunications demonstrations.

"(b) The Secretary may approve an application submitted under subsection (a) if he determines that--,

"(1) the project for which application is made will demonstrate innovative methods or techniques of utilizing nonbroadcast telecommunications equipment or facilities to satisfy the purpose of this ssubpart;

"(2) demonstrations and related activities assisted under this subpart will remain under the administration and control of the applicant;

"(3) the applicant has the managerial and technical capability to carry out the project for which the application is made; and

"(4) the facilities and equipment acquired or developed pursuant to the application will be used substantially for the transmission, distribution, and delivery of health, education, or public or social service information.

"(c) Upon approving any application under this subpart with respect to any project, the Secretary shall make a grant to or enter into a contract with the applicant in an amount determined by the Secretary not to exceed the reasonable and necessary cost of such project. The Secretary shall pay such amount from the sums available therefor, in advance or by way of reimbursement, and in such installments consistent with established practice, as he may determine.

"(d) Funds made available pursuant to this subpart shall not be available for the construction, remodeling, or repair of structures to house the facilities or equipment acquired or developed with such funds, except that such funds may be used for minor remodeling which is necessary for and incidental to the installation of such facilities or equipment.

"(e) For purposes of this section, the term 'nonbroadcast telecommunications facilities' includes, but is not limited to, cable television systems, communications satellite systems and related terminal equipment, and other modes of transmitting, emitting, or receiving images and sounds or intelligence by means of wire, radio, optical, electromagnetic, or other means.

"(f) The funding of any demonstration pursuant to this subpart shall continue for not more than 3 years from the date of the original grant or contract.

"(g) The Secretary shall require that the recipient of a grant or contract under this subpart submit a summary and evaluation of the results of the demonstration at least annually for each year in which funds are received pursuant to this section.

"(h) (1) Each recipient of assistance under this subpart shall keep such records as may be reasonably necessary to enable the Secretary to carry out the Secretary's functions under this subpart, including records which fully disclose the amount and the disposition by such recipient of the proceeds of such assistance, the total cost of the project or undertaking in connection with which such assistance is given or used, the amount and nature of that portion of the cost of the project or undertaking supplied by other sources, and such other records as will facilitate an effective audit.

"(2) The Secretary and the Comptroller General of the United States, or any of their duly authorized representatives, shall have access for the purposes of audit and examination to any books, documents, papers, and records of the recipient that are pertinent to assistance received under this subpart.

"(i) The Secretary is authorized to make such rules and regulations as may be necessary to carry out this subpart, including regulations relating to the order of priority in approving applications for projects under this subpart or to determining the amounts of grants for such projects.

"(j) The Commission is authorized to provide such assistance in carrying out the provisions of this subpart as may be requested by the Secretary. The Secretary shall provide for close coordination with the Commission in the administration of the Secretary's functions under this subpart which are of interest to or affect the functions of the Commission. The Secretary shall provide for close coordination with the Corporation in the administration of the Secretary's functions under this subpart which are of interest to or affect the functions of the Corporation.

"(k) There are authorized to be appropriated $1,000,000 for each of the fiscal years 1979, 1980, and 1981, to be used by the Secretary to carry out the provisions of this subpart. Sums appropriated under this subsection for any fiscal year shall remain available for payment of grants or contracts for projects for which applications approved under this subpart have been submitted within one year after the last day of such fiscal year.". TITLE III-- CORPORATION FOR PUBLIC BROADCASTING

DECLARATION OF POLICY

Sec. 301. Section 396(a) of the Communications Act of 1934 is amended to read as follows:

" Sec. 396. (a) The Congress hereby finds and declares that--,

"(1) it is in the public interest to encourage the growth and development of public radio and television broadcasting, including the use of such media for instructional, educational, and cultural purposes;

"(2) it is in the public interest to encourage the growth and development of nonbroadcast telecommunications technologies for the delivery of public telecommunications services;

"(3) expansion and development of public telecommunications and of diversity of its programming depend on freedom, imagination, and initiative on both local and national levels;

"(4) the encouragement and support of public telecommunications, while matters of importance for private and local development, are also of appropriate and important concern to the Federal Government;

"(5) it furthers the general welfare to encourage public telecommunications services which will be responsive to the interests of people both in particular localities and throughout the United States, and which will constitute an expression of diversity and excellence;

"(6) it is necessary and appropriate for the Federal Government to complement, assist, and support a national policy that will most effectively make public telecommunications services available to all citizens of the United States; and

"(7) a private corporation should be created to facilitate the development of public telecommunications and to afford maximum protection from extraneous interference and control.".

Sec. 302. Section 396 (d)(1) of the Communications Act of 1934 is amended by striking out " President shall designate one of the members firs appointed to the Board as Chairman; thereafter the".

COMPENSATION OF OFFICES AND EMPLOYEES

Sec. 303. (a) Section 396(e)(1) of the Communications Act of 1934 is amended by inserting after the first sentence the following new sentence: " No officer or employee of the Corporation may be compensated by the Corporation at an annual rate of pay which exceeds the rate of basic pay in effect from time to time for level I of the Executive Schedule under section 5312 of title 5, United States Code.".

(b) The amendment made by subsection (a) shall not be construed to reduce the annual rate of pay of any officer or employee of the Corporation for Public Broadcasting in any case in which (1) such officer or employee was appointed or named to any position in the Corporation before the date of the enactment of this Act; and (2) the annual rate of pay for such position, as in effect on such date of enactment, exceeds the maximum rate of pay established in section 396( e) (1) of the Communications Act of 1934, as amended by subsection (a).

PURPOSES AND ACTIVITIES OF CORPORATION

Sec. 304. Section 396 (g) of the Communications Act of 1934 is amended to read as follows:

" Purposes and Activities of Corporation

"(g) (1) In order to achieve the objectives and to carry out the purposes of this subpart, as set out in subsection (a), the Corporation is authorized to--,

"(A) facilitate the full development of public telecommunications in which programs of high quality, diversity, creativity, excellence, and innovation, which are obtained from diverse sources, will be made available to public telecommunications entities, with strict adherence to objectivity and balance in all programs or series of programs of a controversial nature;

"(B) assist in the establishment and development of one or more interconnection systems to be used for the distribution of public telecommunications services so that all public telecommunications entities may disseminate such services at times chosen by the entities;

"(C) assist in the establishment and development of one or more systems of public telecommunications entities throughout the United States; and

"(D) carry out its purposes and functions and engage in its activities in ways that will most effectively assure the maximum freedom of the public telecommunications entities and systems from interference with, or control of, program content or other activities.

"(2) In order to carry out the purposes set forth in subsection (a), the Corporation is authorized to--,

"(A) obtain grants from and make contracts with individuals and with private, State, and Federal agencies, organizations, and institutions;

"(B) contract with or make grants to public telecommunications entities, national, regional, and other systems of public telecommunications entities, and independent producers and production entities, for the production or acquisition of public telecommunications services to be made available for use by public telecommunications entities, except that--,

"(i) to the extent practicable, proposals for the provision of assistance by the Corporation in the production or acquisition of programs or series of programs shall be evaluated on the basis of comparative merit by panels of outside experts, representing diverse interests and perspectives, appointed by the Corporation; and

"(ii) nothing in this subparagraph shall be construed to prohibit the exercise by the Corporation of its prudent business judgment with respect to any contract or grant to assist in the production or acquisition of any program or series of programs recommended by any such panel;

"(C) make payments to existing and new public telecommunications entities to aid in financing the production or acquisition of public telecommunications services by such entities, particularly innovative approaches to such services, and other costs of operation of such entities;

"(D) establish and maintain, or contribute to, a library and archives of noncommercial educational and cultural radio and awareness of, and disseminate information about, public telecommunications services by various means, including the publication of a journal;

"(E) arrange, by grant to or contract with appropriate public or private agencies, organizations, or institutions, for interconnection facilities suitable for distribution and transmission of public telecommunications services to public telecommunications entities;

"(F) hire or accept the voluntary services of consultants, experts, advisory boards, and panels to aid the Corporation in carrying out the purposes of this subpart;

"(G) conduct (directly or through grants or contracts) research, demonstrations, or training in matters related to public television or radio broadcasting and the use of nonbroadcast communications technologies for the dissemination of noncommercial educational and cultural television or radio programs;

"(H) make grants or contracts for the use of nonbroadcast telecommunications technologies for the dissemination to the public of public telecommunications services; and

"(I) take such other actions as may be necessary to accomplish the purposes set forth in subsection (a).

Nothing contained in this paragraph shall be construed to commit the Federal Government to provide any sums for the payment of any obligation of the Corporation which exceeds amounts provided in advance in appropriation Acts.

"(3) To carry out the foregoing purposes and engage in the foregoing activities, the Corporation shall have the usual powers conferred upon a nonprofit corporation by the District of Columbia Nonprofit Corporation Act (D.C. Code, sec. 29 - 1001 et seq.), except that the Corporation is prohibited from--,

"(A) owning or operating any television or radio broadcast station, system, or network, community antenna television system,

interconnection system or facility, program production facility, or any public telecommunications entity, system, or network; and

"(B) producing programs, scheduling programs for dissemination,

or disseminating programs to the public.

"(4) All meetings of the Board of Directors of the Corporation, including any committee of the Board, shall be open to the public under such terms, conditions, and exceptions as are set forth in subsection (k)(4).

"(5) The Corporation, in consultation with public broadcast stations, shall undertake a study to determine the manner in which personal services of volunteers should be included in determining the level of non-Federal financial support pursuant to subsection (k) (2)(A). The study, which shall be completed not later than 180 days after the effective date of this paragraph, shall include an examination of any fiscal, administrative, or other factors which should be taken into account in determining the manner in which such services should be so included, and shall include proposed valuation standards. Upon completion, the study and the proposed valuation standards shall be submitted to the Comptroller General of the United States for approval.

"(6) The Corporation, in consultation with interested parties, shall create a 5-year plan for the development of public telecommunications services. Such plan shall be updated annually by the Corporation.".

INTERCONNECTION SERVICE

Sec. 305. Section 396(h) of the Communications Act of 1934 is amended to read as follows:

" Interconnection Service

"(h)(1) Nothing in this Act, or in any other provision of law, shall be construed to prevent United States communications common carriers from rendering free or reduced rate communications interconnection services for public television or radio services, subject to such rules and regulations as the Commission may prescribe.

"(2) Subject to such terms and conditions as may be established by public telecommunications entities receiving space satellite interconnection facilities or services purchased or arranged for, in whole or in part, with funds authorized under this part, other public telecommunications entities shall have reasonable access to such facilities or services for the distribution of educational and cultural programs to public telecommunications entities. Any remaining capacity shall be made available to other persons for the transmission of noncommercial educational and cultural programs and program information relating to such programs, to public telecommunications entities, at a charge or charges comparable to the charge or charges, if any, imposed upon a public telecommunications entity for the distribution of noncommercial educational and cultural programs to public telecommunications entities. No such person shall be denied such access whenever sufficient capacity is available.".

ANNUAL REPORT TO CONGRESS

Sec. 306. Section 396(i) of the Communications Act of 1934 is amended to read as follows:

"(i) (1) The Corporation shall submit an annual report for the preceding fiscal year ending September 30 to the President for transmital to the Congress on or before the 15th day of February of each year. The report shall include--,

"(A) a comprehensive and detailed detailed report of the Corporation's operations, activities, financial condition, and accomplishments under this subpart and such recommendations as the Corporation deems appropriate;

"(B) a comprehensive and detailed inventory of funds distributed by Federal agencies to public telecommunications entities during the preceding fiscal year; and

"(C) the summary of the annual report provided to the Secretary pursuant to section 398 (b) (4).

"(2) The officers and directors of the Corporation shall be available to testify before appropriate committees of the Congress with respect to such report, the report of any audit made by the Comptroller General pursuant to subsection (1), or any other matter which such committees may determine.".

FINANCING; OPEN MEETINGS AND FINANCIAL RECORDS

Sec. 307. (a) Section 396 (k) of the Communications Act of 1934 is amended to read as follows:

" Financing; Open Meetings and Financial Records

"(k) (1) (A) There is hereby established in the Treasury a fund which shall be known as the Public Broadcasting Fund (hereinafter in this subsection referred to as the ' Fund'), to be administered by the Secretary of the Treasury.

"(B) There is authorized to be appropriated to the Fund, for each of the fiscal years 1978, 1979, and 1980, an amount equal to 40 percent of the total amount of non-Federal financial support received by public broadcasting entities during the fiscal year second preceding each such fiscal year, except that the amount so appropriated shall not exceed $121,000,000 for fiscal year 1978, $140,000,000 for fiscal year 1979, and $160,000,000 for fiscal year 1980

"(C) There is authorized to be appropriated to the Fund, for each of the fiscal years 1981, 1982, and 1983, an amount equal to 50 percent of the total amount of non-Federal financial support received by public broadcasting entities during the fiscal year second preceding each such fiscal year, except that the amount so appropriated shall not exceed $180,000,000 for fiscal year 1981, $200,000,000 for fiscal year 1982, and $220,000,000 for fiscal year 1983.

"(D) Funds appropriated under this subsection shall remain available until expended.

"(2) (A) The funds authorized to be appropriated by this subsection shall be used by the Corporation, in a prudent and financially responsible manner, solely for its grants, contracts, and administrative costs, except that the Corporation may not use any funds appropriated under this subpart for purposes of conducting any reception, or providing any other entertainment, for any officer or employee of the Federal Government or any State or local government. The Corporation shall determine the amount of non-Federal financial support received by public broadcasting entities during each of the fiscal years referred to in paragraph (1) for the purpose of determining the amount of each authorization, and shall certify such amount to the Secretary of the Treasury, except that the Corporation may include in its certification non-Federal financial support received by a public broadcasting entity during its most recent fiscal year ending before September 30 of the year for which certification is made. Upon receipt of such certification, the Secretary of the Treasury shall make available to the Corporation, from such funds as may be appropriated to the Fund, the amount authorized for each of the fiscal years pursuant to the provisions of this subsection.

"(B) Funds appropriated and made available under this subsection shall be disbursed by the Secretary of the Treasury on a quarterly basis, in such amounts as the Corporation certifies will be necessary to meet its financial obligations in the succeeding quarter.

"(3) (A) The Corporation shall reserve for distribution among the licensees and permittees of public television and radio stations an amount equal to--,

"(i) not less than 40 percent of the funds disbursed by the Corporation from the Fund under this section in each fiscal year in which the amount disbursed is $88,000,000 or more, but less than $121,000,000;

"(ii) not less than 45 percent of such funds in each fiscal year in which the amount disbursed is $121,000,000 or more, but less than $160,000,000; and

"(iii) not less than 50 percent of such funds in each fiscal year in which the amount disbursed is $160,000,000 or more.

"(B) (i) The Corporation shall establish an annual budget according to which it shall make grants and contracts for production of public television or radio programs by independent producers and production entities and public telecommunications entities, for acquisition of such programs by public telecommunications entities, for interconnection facilities and operations, for distribution of funds among public telecommunications entities, and for engineering and program-related research. A significant portion of funds available under the budget established by the Corporation under this subparagraph shall be used for funding the production of television and radio programs. Of such portion, a substantial amount shall be reserved for distribution to independent producers and production entities for the production of programs.

"(ii) All funds contained in the annual budget established by the Corporation under clause (i) shall be distributed to entities outside the Corporation and shall not be used for the general administrative costs of the Corporation, the salaries or related expenses of Corporation personnel and members of the Board, or for expenses of consultants and advisers to the Corporation.

"(iii) During each of the fiscal years 1981, 1982, and 1983, the annual budget established by the Corporation under clause (i) shall consist of not less than 95 percent of the funds made available by the Secretary of the Treasury to the Corporation pursuant to paragraph (2) (A).

"(iv) In determining the amount of funds which shall be made available for radio programming and operations under this subparagraph, the Corporation shall take into account the increased financial needs relating to radio programming and operations resulting from the expansion and development of noncommercial radio broadcast station facilities through the use of funds made available pursuant to section 393 (d).

"(C) In fiscal year 1981, the Corporation may expand an amount equal to not more than 5 percent of the funds made available by the Secretary of the Treasury during such fiscal year pursuant to paragraph (2) (A) for those activities authorized under subsection (g) (2) which are not among those grant activities described in subparagraph (B).

"(D) In fiscal years 1982 and 1983, the amount which the Corporation may expend for activities authorized under subsection (g) (2) which are not among those grant activities described in subparagraph (B) shall be 105 percent of the amount derived for the preceding fiscal year.

"(4) Funds may not be distributed pursuant to this subsection to the Public Broadcasting Service or National Public Radio (or any successor organization), or to the licensee or permittee of any public broadcast station, unless the governing body of any such organization, any committee of such governing body, or any advisory body of any such organization, holds open meetings preceded by reasonable notice to the public. All persons shall be permitted to attend any meeting of the board, or of any such committee or body, and no person shall be required, as a condition to attendance at any such meeting, to register such person's name or to provide any other information. Nothing contained in this paragraph shall be construed to prevent any such board, committee, or body from holding closed sessions to consider matters relating to individual employees, proprietary information, litigation and other matters requiring the confidential advice of counsel, commercial or financial information obtained from a person on a privileged or confidential basis, or the purchase of property or services whenever the premature exposure of such purchase would compromise the business interests of any such organization. if any such meeting is closed pursuant to the provisions of this paragraph, the organization involved shall thereafter (within a reasonable period of time) make available to the public a written statement containing an explanation of the reasons for closing the meeting.

"(5) Funds may not be distributed pursuant to this subsection to any public telecommunications entity that does nt maintain for public examination copies of the annual financial and audit reports, or other information regarding finances, submitted to the Corporation pursuant to subsection (1) (3) (B).

"(6) (A) The Corporation, in consultation with public television and radio licensees, shall review annualy the percentage of funds reserved pursuant to paragraph (3) (A), and the criteria and conditions regarding the division and distribution of such funds among public television and radio stations.

"(B) The funds reserved for public broadcast stations pursuant to paragraph (3) (A) shall be divided into two portions, one to be distributed among radio stations and one to be distributed among television stations. The Corporation shall make a basic grant from the portion reserved for television stations to each licensee and permittee of a public television station that is on the air. The balance of the portion reserved for television stations and the total portion reserved for radio stations shall be distributed to licensees and permittees of such stations in accordance with eligibility criteria that promote the public interest in public broadcasting, and on the basis of a formula designed to--,

"(i) provide for the financial needs and requirements of stations in relation to the communities and audiences such stations undertake to serve;

"(ii) maintain existing, and stimulate new, sources of non-Federal financial support for stations by providing incentives for increases in such support; and

"(iii) assure that each eligible licensee and permittee of a public radio station receives a basic grant.

"(7) No distribution of funds pursuant to this subsection shall exceed, in any fiscal year, 50 percent of a licensee's or permittee's total non-Federal financial support during the fiscal year second preceding the fiscal year in which such distribution is made.

"(8) The funds distributed pursuant to paragraph (3) (A) may be used at the discretion of the recipient for purposes relating to the provision of public television and radio programming, including, but not limited to--,

"(A) producing, acquiring, broadcasting, or otherwise disseminating public television or radio programs;

"(B) procuring national or regional program distribution services that make public television or radio programs available for broadcast or other dissemination at times chosen by stations;

"(C) acquiring, replacing, or maintaining facilities, and real property used with facilities, for the production, broadcast, or other dissemination of public television and radio programs; and

"(D) developing and using nonbroadcast communications technologies for public television or radio programming purposes.

"(9) (A) Funds may not be distributed pursuant to this subpart to any public broadcast station unless such station establishes a community advisory board. Any such station shall undertake good faith efforts to assure that the composition of its advisory board reasonably reflects the diverse needs and interests of the communities served by such station.

"(B) The board shall be permitted to review the programming goals established by the station, the service provided by the station, and the significant policy decisions rendered by the station. The board may also be delegated any other responsibilities, as determined by the governing body of the station. The board shall advise the governing body of the station with respect to whether the programming and other policies of such station are meeting the specialized educational and cultural needs of the communities served by the station,and may make such recommendations as it considers appropriate to meet such needs.

"(C) The role of the board shall be solely advisory in nature, except to the extent other responsibilities are delegated to the board by the governing body of the station. In no case shall the board have any authority to exercise any control over the daily management or operation of the station.

"(D) In the case of any public broadcast station in existence on the effective date of this paragraph, such station shall comply with the requirements of this paragraph with respect to the establishement of a community advisory board not later than 180 days after such effective date.

"(E) The provision of subparagraph (A) prohibiting the distribution of funds to any public broadcast station unless such station establishes a community advisory board shall be the exclusive remedy for the enforcement of the provisions of this paragraph.

"(10) Funds may not be distributed pursuant to this subsection to the Public Broadcasting Service or National Public Radio (or any successor organization) unless assurances are provided to the Corporation that no officer or employee of the Public Broadcasting Service or National Public Radio (or any successor organization), as the case may be, will be compensated at an annual rate of pay which exceeds the rate of basic pay in effect from time to time for level I of the Executive Schedule under section 5312 of title 5, United States Code.".

(b) Section 396 (k) (10) of the Communications Act of 1934, as added by subsection (a), shall not be construed to reduce the annual rate of pay of any officer or employee of the Public Broadcasting Service or National Public Radio (or any successor organization) in any case in which (1) such officer or employee was appointed or named to any position in the Public Broadcasting Service or National Public Radio (or any successor organization) before the date of the enactment of this Act; and (2) the annual rate of pay for such position, as in effect on such date of enactment, exceeds the maximum rate of pay established in section 396 (k) (10) of the Communications Act of 1934, as added by subsection (a).

FINANCIAL MANAGEMENT AND RECORDS

Sec. 308. Section 396 (1) (3) of the Communications Act of 1934 is amended to read as follows:

"(3) (A) Not later than 1 year after the effective date of this paragraph, the Corporation, in consultation with the Comptroller General, and as appropriate with others, shall develop accounting principles which shall be used uniformly by all public telecommunications entities receiving funds under this subpart, taking into account organizational differences among various categories of such entities. Such principles shall be designed to account fully for all funds received and expended for public telecommunications purposes by such entities.

"(B) Each public telecommunications entity receiving funds under this subpart shall be required--,

"(i) to keep its books, records, and accounts in such form as may be required by the Corporation;

"(ii) to undergo an annual audit by independent certified public accountants or independent licensed public accountants certified or licensed by a regulatory authority of a State, which audit shall be in accordance with auditing standards developed by the Corporation, in consultation with the Comptroller General; and

"(iii) to furnish annually to the Corporation a copy of the audit report required pursuant to clause (ii), as well as such other information regarding finances (including an annual financial report) as the Corporation may require.

"(C) Any recipient of assistance by grant or contract under this section, other than a fixed price contract awarded pursuant to competitive bidding procedures, shall keep such records as may be reasonably necessary to disclose fully the amount and the disposition by such recipient of such assistance, the total cost of the project or undertaking in connection with which such assistance is given or used, and the amount and nature of that portion of the cost of the project or undertaking supplied by other sources, and such other records as will facilitate an effective audit.

"(D) The Corporation or any of its duly authorized representatives shall have access to any books, documents, papers, and records of any recipient of assistance for the purpose of auditing and examining all funds received or expended for public telecommunications purposes by the recipient. The Comptroller General of the United States or any of his duly authorized representatives also shall have access to such books, documents, papers, and records for the purpose of auditing and examining all funds received or expended for public telecommunications purposes during any fiscal year for which Federal funds are available to the Corporation.".

EQUAL EMPLOYMENT OPPORTUNITY

Sec. 309. Section 398 of the Communications Act of 1934 is amended to read as follows: " FEDERAL INTERFERENCE OR CONTROL PROHIBITED; EQUAL EMPLOYMENT

OPPORTUNITY

" Sec. 398. (a) Nothing contained in this part shall be deemed (1) to amend any other provision of, or requirement under, this Act; or (2) except to the extent authorized in subsection (b), to authorize any department, agency, officer, or employee of the United States to exercise any direction, supervision, or control over public telecommunications, or over the Corporation or any of its grantees or contractors, or over the charter or bylaws of the Corporation, or over the curriculum, program of instruction, or personnel of any educational institution, school system, or public telecommunications entity.

"(b) (1) Equal opportunity in employment shall be afforded to all persons by the Public Broadcasting Service and National Public Radio (or any successor organization) and by all public telecommunications entities receiving funds pursuant to subpart C (hereinafter in this subsection referred to as 'recipients'), and no person shall be subjected to discrimination in employment by any recipient on the grounds of race, color, religion, national origin, or sex.

"(2) (A) The Secretary is authorized and directed to enforce this subsection and to prescribe such rules and regulations as may be necessary to carry out the functions of the Secretary under this subsection.

"(B) The Secretary shall provide for close coordination with the Commission in the administration of the responsibilities of the Secretary under this subsection which are of interest to or affect the functions of the Commission so that, to the maximum extent possible consistent with the enforcement responsibilities of each, the reporting requirements of public telecommunications entities shall be uniformly based upon consistent definitions and categories of information.

"(3) (A) The Corporation shall incorporate into each grant agreement or contract with any recipient entered into on or after the effective date of the rules and regulations prescribed by the Secretary pursuant to paragraph (2) (A), a statement indicating that, as a material part of the terms and conditions of the grant agreement or contract, the recipient will comply with the provisions of paragraph (1) and the rules and regulations prescribed pursuant to paragraph (2) (A). Any person which desires to be a recipient (within the meaning of paragraph (1)) of funds under subpart C shall, before receiving any such funds, provide to the Corporation any information which the Corporation may require to satisfy itself that such person is affording equal opportunity in employment in accordance with the requirements of this subsection. Determinations made by the Corporation in accordance with the preceding sentence shall be based upon guidelines relating to equal opportunity in employment which shall be established by rule by the Secretary.

"(B) If the Corporation is not satisfied that any such person is affording equal opportunity in employment in accordance with the requirements of this subsection, the Corporation shall notify the Secretary, and the Secretary shall review the matter and make a final determination regarding whether such person is affording equal opportunity in employment. In any case in which the Secretary conducts a review under the preceding sentence, the Corporation shall make funds available to the person involved pursuant to the grant application of such person (if the Corporation would have approved such application but for the finding of the Corporation under this paragraph) pending a final determination of the Secretary upon completion of such review. The Corporation shall monitor the equal employment opportunity practices of each recipient throughout the duration of the grant or contract.

"(C) The provisions of subparagraph (A) and subparagraph (B) shall take effect on the effective date of the rules and regulations prescribed by the Secretary pursuant to paragraph (2) (A).

"(4) Based upon its responsibilities under paragraph (3), the Corporation shall provide an annual report for the preceding fiscal year ending September 30 to the Secretary on or before the 15th day of February of each year. The report shall contain information in the form required by the Secretary. The Corporation shall submit a summary of such report to the President and the Congress as part of the report required in section 396(i). The Corporation shall provide other information in the form which the Secretary may require in order to carry out the functions of the Secretary under this subsection.

"(5) Whenever the Secretary makes a final determination, pursuant to the rules and regulations which the Secretary shall prescribe, that a recipient is not in compliance with paragraph (1), the Secretary shall, within 10 days after such determination, notify the recipient in writing of such determination and request the recipient to secure compliance. Unless the recipient within 120 days after receipt of such written notice--,

"(A) demonstrates to the Secretary that the violation has been corrected; or

"(B) enters into a compliance agreement approved by the

Secretary;

the Secretary shall direct the Corporation to reduce or suspend any further payments of funds under this part to the recipient and the Corporation shall comply with such directive. Resumption of payments shall take place only when the Secretary certifies to the Corporation that the recipient has entered into a compliance agreement approved by the Secretary. A recipient whose funds have been reduced or suspended under this paragraph may apply at any time to the Secretary for such certification.

"(c) Nothing in this section shall be construed to authorize any department, agency, officer, or employee of the United States to exercise any direction, supervision, or control over the content or distribution of public telecommunications programs and services, or over the curriculum or program of instruction of any educational institution or school system.".

TITLE IV-- MISCELLANEOUS PROVISIONS; EFFECTIVE DATE

DEFINITIONS

Sec. 401. Section 397 of the Communications Act of 1934 is amended to read as follows:

" DEFINITIONS

" Sec. 397. For the purposes of this part--,

"(1) The term 'construction' (as applied to public telecommunications facilities) means acquisition (including acquisition by lease), installation, and modernization of public telecommunications facilities and planning and preparatory steps incidental to any such acquisition, installation, or modernization.

"(2) The term ' Corporation' means the Corporation for Public Broadcasting authorized to be established in subpart C.

"(3) The term 'interconnection' means the use of microwave equipment, boosters, translators, repeaters, communication space satellites, or other apparatus or equipment for the transmission and distribution of television or radio programs to public telecommunications entities.

"(4) The term 'interconnection system' means any system of interconnection facilities used for the distribution of programs to public telecommunications entities.

"(5) The term 'meeting' means the deliberations of at least the number of members of a governing or advisory body, or any committee thereof, required to take action on behalf of such body or committee where such deliberations determine or result in the joint conduct or disposition of the governing or advisory body's business, or the committee's business, as the case may be, but only to the extent that such deliberations relate to public broadcasting.

"(6) The terms 'noncommercial educational broadcast station' and 'public broadcast station' mean a television or radio broadcast station which--,

"(A) under the rules and regulations of the Commission in effect on the effective date of this paragraph, is eligible to be licensed by the Commission as a noncommercial educational radio or television broadcast station and which is owned and operated by a public agency or nonprofit private foundation, corporation, or association; or

"(B) is owned and operated by a municipality and which transmits only noncommercial programs for education purposes.

"(7) The term 'noncommercial telecommunications entity' means any enterprise which--,

"(A) is owned and operated by a State, a political or special purpose subdivision of a State, a public agency, or a nonprofit private foundation, corporation, or association; and

"(B) has been organized primarily for the purpose of disseminating audio or video noncommercial educational and cultural programs to the public by means other than a primary television or radio broadcast station, including, but not limited to, coaxial cable, optical fiber, broadcast translators, cassettes, discs, microwave, or laser transmission through the atmosphere.

"(8) The term 'nonprofit' (as applied to any foundation, corporation, or association) means a foundation, corporation, or association, no part of the net earnings of which inures, or may lawfully inure, to the benefit of any private shareholder or individual.

"(9) The term 'non-Federal financial support' means the total value of cash and the fair market value of property and services (including, to the extent provided in the second sentence of this paragraph, the personal services of volunteers) received--,

"(A) as gifts, grants, bequests, donations, or other contributions for the construction or operation of noncommercial educational broadcast stations, or for the production, acquisition, distribution, or dissemination of educational television or radio programs, and related activities, from any source other than (i) the United States or any agency or instrumentality of the United States; or (ii) any public broadcasting entity; or

"(B) as gifts, grants, donations, contributions, or payments from any State, or any educational institution, for the construction or operation of noncommercial educational broadcast stations or for the production, acquisition, distribution, or dissemination of educational television or radio programs, or payments in exchange for services or materials with respect to the provision of educational or instructional television or radio programs.

Such term includes the fair market value of personal services of volunteers, as computed using the valuation standards established by the Corporation and approved by the Comptroller General pursuant to section 396(g) (5), but only with respect to such services provided to public telecommunications entities after such standards are approved by the Comptroller General and only, with respect to such an entity in a fiscal year, to the extent that the value of the services does not exceed 5 percent of the total non-Federal financial support of the entity in such fiscal year.

"(10) The term 'preoperational expenses' means all nonconstruction costs incurred by new telecommunications entities before the date on which they begin providing service to the public, and all nonconstruction costs associated with expansion of existing entities before the date on which such expanded capacity is activated, except that such expenses shall not include any portion of the salaries of any personnel employed by an operating public telecommunications entity.

"(11) The term 'public broadcasting entity' means the Corporation, any licensee or permittee of a public broadcast station, or any non-profit institution engaged primarily in the production, acquisition, distribution, or dissemination, of educational and cultural television or radio programs.

"(12) The term 'public telecommunications entity' means any enterprise which--,

"(A) is a public broadcast station or a noncommercial telecommunications entity; and

"(B) disseminates public telecommunications services to the public.

"(13) The term 'public telecommunications facilities' means apparatus necessary for production, interconnection, captioning, broadcast, or other distribution of programming, including, but not limited to, studio equipment,cameras, microphones, audio and video storage or reproduction equipment, or both, signal processors and switchers, towers, antennas, transmitters, translators, microwave equipment, mobile equipment, satellite communications equipment, instructional television fixed service equipment, subsidiary communications authorization transmitting and receiving equipment, cable television equipment, video and audio cassettes and discs, optical fiber communications equipment, and other means of transmitting, emitting, storing, and receiving images and sounds, or intelligence, except that such term does not include the buildings to house such apparatus (other than small equipment shelters which are part of satellite earth stations, translators, microwave interconnection facilities, and similar facilites).

"(14) The term 'public telecommunications services' means non-commercial educational and cultural radio and television programs, and related noncommercial instructional or informational material that may be transmitted by means of electronic communications.

"(15) The term ' Secretary' means the Secretary of Commerce when such term is used in subpart A, and the Secretary of Health, Education, and Welfare when such term is used in subpart B, subpart C, and this subpart.

"(16) The term ' State' includes the District of Columbia, the Commonwealth of Puerto Rico, the Virgin Islands, Guam, American Samoa, the Northern Mariana Islands, and the Trust Territory of the Pacific Islands.

"(17) The term 'system of public telecommunications entities' means any combination of public telecommunications entities acting cooperatively to produce, acquire, or distribute programs, or to undertake related activities.".

NATIONAL TELECOMMUNICATIONS AND INFORMATION

ADMINISTRATION

ANNUAL REPORT

Sec. 402. The National Telecommunications and Information Administration shall submit an annual report to the Congress not later than January 31 of each calendar year, beginning with calendar year 1980. Each such report shall relate to the preceding calendar year and shall contain information on the activities of the Administration with respect to domestic communications, international communications, Federal Government communications, spectrum plans and policies, and any other matters.

EFFECTIVE DATE

Sec. 403. The provisions of this Act, and the amendments made by this Act, shall take effect on the date of the enactment of this Act.

Approved November 2, 1978.

LEGISLATIVE HISTORY:

HOUSE REPORTS: No. 95 - 1178 (Comm. on Interstate and Foreign Commerce) and No. 95 - 1774 (Comm. of Conference).

SENATE REPORT No. 95 - 858, accompanying S. 2883 (Comm. on Commerce, Science, and Transportation).

CONGRESSIONAL RECORD, Vol. 124 (1978):

July 10, considered and passed House.

Sept. 19, considered and passed Senate, amended, in lieu of S. 2883.

Oct. 13, House agreed to conference report.

Oct. 14, Senate agreed to conference report.

WEEKLY COMPILATION OF PRESIDENTIAL DOCUMENTS, Vol. 14, No. 44:

Nov. 2, Presidential statement.

PUBLIC LAW 95-566, 92 STAT. 2403, MIDDLE INCOME STUDENT ASSISTANCE ACT.

95th CONGRESS, S. 2539. NOVEMBER 1, 1978. An Act To amend title IV of the Higher Education Act of 1965

to increase the availability

ability of assistance to middle-income students.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That this Act may be cited as the " Middle Income Student Assistance Act".

Sec. 2. (a) Section 411(a)(3)(B) of the Higher education Act of 1965 (hereinafter in this Act referred to as the " Act") is amended by adding at the end thereof the following new division:

"(iv) In determining the expected family contribution under this subparagraph for any academic year after academic year 1978-1979, an assessment rate of not more than 10.5 per centum shall be applied to parental discretionary income.".

(b) Section 411(a)(3)(C) of the Act is amended by adding at the end thereof the following: " In addition, such regulations shall--,

(i) provide that the portion of assets which shall be exempt from assessment for contribution for an independent student who has one or more dependents shall be the same as the portion so exempt for the family of a dependent student;

"(ii) provide that the rate of assessment for contribution on that portion of assets of such an independent student which is not exempt under division (i) shall be the same as the rate applied to the comparable portion of assets of the family of a dependent student; and

(iii) in establishing a portion of effective family income which shall be exempt from assessment for contribution by reason of subsistence requirements of independent students who have no dependents, use the same method for computation of such portion for such students as is used for dependent students and for independent students who have dependents.". (c) Section 411(b)( 3)(i) is amended--,

(1) by redesignating subdivisions (II), (III), and (IV) as subdivisions (IV), (V), and (VI), respectively; and

(2) by striking out subdivision (I) and inserting in lieu thereof the following:

"(I) the full amount in the case of any entitlement which exceeds $1,600;

"(II) in the case of any entitlement which exceeds $1,200 but does not exceed $1,600,90 per centum thereof;

"(III) in the case of any entitlement which exceeds $1,000 but does not exceed $1,200,75 per centum thereof;". (d) Section 411( b)(5) of the Act is amended to read as follows:

"(5) No payment may be made on the basis of entitlements established under this subpart during the fiscal year ending September 30, 1980, if, for such fiscal year--,

"(A) the appropriation for making grants under subpart 2 of this part does not at least equal $370,000,000;

"(B) the appropriation for work-study payments under section 441 of this title does not at least equal $500,000,000; and

"(C) the approiation for capital contributions to student loan funds under part E of this title does not at least equal $286,000,000.".

Sec. 3. Section 415 C(b)(4) of the Act is amended by inserting before the semicolon at the end thereof a comma and the following: "except in any State in which participation of nonprofit institutions of higher education is in violation of the constitution of the State".

Sec. 4. Section 417 B(b) of the Higher Education Act of 1965 is amended by inserting immediately after paragraph (5) the following new sentence: " No individual who is an eligible veteran, as that term is defined by section 1652(a) of title 38, United States Code, shall be deemed ineligible to participate in any program under this subsection by reason of such individual's age.".

Sec. 5. (a)(1) Section 427(a)(2)(C)(i) of the Act is amended by striking out "or" and by inserting immediately after " Commissioner," the following: "or pursuant to a rehabilitation training program for disabled individuals approved by the Commissioner,".

(2) Section 428(b)(1)(M)(i) of the Act is amended by striking out "or" and by inserting immediately after " Commissioner," the following: "or pursuant to a rehabilitation training program for disabled individuals approved by the Commissioner,".

(b)(1) Section 428(a)(2) of the Act is amended--,

(A) by striking out subparagraphs (A) and (B) and inserting in lieu thereof the following:

"(2)(A) Each student qualifying for a portion of an interest payment under paragraph (1) shall have provided to the lender a statement from the eligible institution, at which the student has been accepted for enrollment, or at which he is in attendance in good standing (as determined by the institution), which--,

"(i) sets forth such student's estimated cost of attendance, and

"(ii) sets forth such student's estimated financial assistance."; and

(B) by redesignating subparagraph (C) as subparagraph (B) and by striking out subparagraph (D).

(2) Section 425(a)(1)(A) of the Act is amended by striking out "section 428(a)(2)(i)" and inserting in lieu thereof "section 428 (a)( 2)(B)(i)".

(3) Section 428(a)(2)(B) of the Act (as redesignated by paragraph (1)(A) of this subsection) is amended by striking out the semicolon at the end of clause (iii) and inserting in lieu thereof a period and by striking out clause (iv) of such section.

(4) Section 428(a) of the Act is amended by striking out paragraph (9).

(5) Section 428(b)(1)(A)(i) of the Act is amended by striking out "section 428(a)(2)(C)(i)" and inserting in lieu thereof "section 428( a)(2)(B)(i)".

Sec. 6. Section 491(b)(3) of the Act is amended by inserting immediately after the first sentence thereof the following new sentence: " Such term also includes a proprietary educational institution in any State which, in lieu of the requirement in clause (1) of section 1201(a), admits as regular students persons who are beyond the age of compulsory school attendance in the State in which the institution is located and who have the ability to benefit from the training offered by the institution.".

Sec. 7. Section 497 of the Act is amended by adding after subsection (c) thereof the following new subsection:

"(d) Any determinations of need made for the purposes of part C or part E of this title shall include considerations of the factor described in section 413 C(a)(2)(v). Nothing in this subsection shall be deemed to prohibit the taking into account for the purposes of such parts of other factors used for the determination of need under other parts of this title.".

Sec. 8. Part B of title IV of the Act is further amended by inserting after section 439 A the following new section:

" Sec. 439 B. Any loan under this part may be counted as part of the expected family contribution in the determination of need for parts A, C, and E of this title, notwithstanding any other provisions of parts A, C, and E.".

Sec. 9. The amendments made by this Act shall take effect upon enactment, except that the amendments made by subsections (a), (b), and (c), of section 2 shall be effective with respect to periods of enrollment beginning on or after August 1, 1979.

Approved November 1, 1978.

LEGISLATIVE HISTORY:

SENATE REPORT No. 95-643 (Comm. on Human Resources).

CONGRESSIONAL RECORD, Vol. 124 (1978):

Aug. 15, 16, considered and passed Senate.

Oct. 14, H.R. 11274 considered and passed House; passage vacated, and S. 2539, amended, passed in lieu.

Oct. 15, Senate concurred in House amendments.

WEEKLY COMPILATION OF PRESIDENTIAL DOCUMENTS, Vol. 14, No. 44: Nov. 1, Presidential statement.

PUBLIC LAW 95-565, 92 STAT. 2397, UNITED STATES RAILWAY ASSOCIATION AMENDMENTS ACT OF 1978.

95th CONGRESS, S. 2788. Nov. 1, 1978
An Act To amend the Regional Rail Reorganization Act of 1973

to authorize the purchase

of an additional $1,200,000,000 of the series A

preferred stock of the Corporation,

and for other purposes.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That this Act may be cited as the " United States Railway Association Amendments Act of 1978".

Sec. 2. (a) Section 216 (a) of the Regional Rail Reorganization Act of 1973 (45 U.S.C. 726(a)) // 45 USC 701. // is amended by striking out "$1,100,000,000". and inserting in lieu thereof "$2,300,000,000".

(b) Section 216 (b)(2) of such Act (45 U.S.C. 716 (b)(2) // 45 USC 726. // is amended by striking out "$1,100,000,000" and inserting in lieu thereof "$2,300,000,000".

(c) Section 216(f) of such Act (45 U.S.C. 726(f)) is amended by striking out "$2,100,000,000" and inserting in lieu thereof "$3,300,000,000".

Sec. 3. Section 216 of the Regional Rail Reorganization Act of 1973 (45 U.S.C. 726) is further amended by redesignating subsection (f) thereof as subsection (g) and by inserting immediately after subsection (e) thereof a new subsection as follows:

"(f)(1) The Association shall not invest the final $345,000,000 of the additional investment in the Corporation authorized by the Regional Rail Reorganization Act Amendments of 1978 unless and until (A) the Corporation has in effect an employee stock ownership plan which satisfies the requirements of paragraphs (2) and (3), and (B) the requirements of the other paragraphs of this subsection have been satisfied.

"(2) The employee stock ownership plan shall:

"(A) provide: "(i) for a transfer to the plan and allocation to the accounts of plan participants in periodic installments of Series A preferred stock of the Corporation with a stated redemption value of at least $345,000,000 or any other securities in an amount determined by the Association, with the concurrence of the Finance Committee, as constituting a meaningful interest in the Corporation, or any combination thereof so determined by the Association, with the concurrence of the Finance Committee. The use of Series A preferred stock to fund the Employee Stock Ownership Plan shall not be interpreted to relieve Con Rail of the responsibility for repaying in full to the United States Railway Association its indebtedness as represented by all shares originally issued under Public Law 94-210 and this Act;

"(ii) for immediate vesting of the rights of participants to such securities upon allocation, subject to defeasance as a result of the plan's termination which termination shall occur in the event that, by the end of the 120th month beginning after the month in which securities or interests therein are first allocated to participants' accounts, the Corporation has not

attained for two consecutive quarters positive net income and

a freight labor cost to freight revenue ratio equal to the average

such ratio for all Class I railroads in 1977, as determined

pursuant to procedures adopted by the Corporation pursuant

to regulations promulgated by the Association with the concurrence

of the Finance Committee;

(B) be an employee benefit plan which is designed to invest primarily in employer securities;

"(C) meets such other requirements (similar to requirements applicable to employee stock ownership plans as defined in section 4975(e)(7) of the Internal Revenue Code of 1954) // 26 USC 4975. // as the Secretary of the Treasury or his delegate may describe;

"(D) have been approved by the Board of Directors of the Corporation to the extent and in the manner which may be required by the Corporation's articles of incorporation and bylaws then in effect; and

"(E) have been prepared in consultation with, and been approved by, the Association and the Finance Committee. "(3) Notwithstanding any other provision of law, if a plan does not meet the requirements of section 401 of the Internal Revenue Code of 1954--, // 26 USC 401. //

"(A) stock transferred under paragraph (2) and allocated to the account of any participant under paragraph (2) shall not be considered income of the participant or his beneficiary under the Internal Revenue Code of 1954 until such stock or dividends are actually distributed or made available to the participant or his beneficiary and, at such time, shall be taxable under section 72 of the Internal Revenue Code of 1954 // 26 USC 72. // (treating the participant or his beneficiary as having a basis of 0 in the stock);

"(B) no amount shall be allocated to any participant under the plan in excess of the amount which might be allocated if the plan met the requirements of section 401 of the Internal Revenue Code of 1954; and

"(C) the plan must meet the requirements of sections 410 and

415 of the Internal Revenue Code of 1954. // 26 USC 410, 415. // "(4) The Corporation shall adopt such terms and conditions governing the securities or interests therein to be transferred to the plan (including limitations on voting rights) as the Association, with the concurrence of the Finance Committee, determines are necessary to protect reasonably the interests of the United States in the litigation pursuant to section 303(c) of this Act // 45 USC 743. // and in the event of any action to further reorganize or restructure the Corporation's assets or capital structure.

"(5) The Corporation, the Association, and a representative appointed by the Chairman of the Railway Labor Executives' association as representative of all the classes or crafts of employees of the Corporation shall engage in negotiations to agree upon a plan in accordance with the provisions of this subsection. The parties shall incorporate their agreement into a written plan instrument specifying the terms and conditions set forth in this subsection and such other terms and conditions as they may decide upon, with the concurrence of the Finance Committee, unless the parties are unable to reach on an agreement on the plan following the exertion of every reasonable effort to do so, in accordance with the Railway Labor Act, in which event, the Corporation and the Association, with the concurrence of the Finance Committee, shall establish a written plan with such terms and conditions as they may agree upon in accordance with this subsection. within one year after the effective date of this subsection, the Corporation shall transmit a draft of such plan to the Congress and shall report on its progress in establishing and administering the plan. The report shall include recommendations of contractual and statutory provisions necessary to reasonably (A) exempt any Trustee of the plan, the Corporation, the Association, any member of the Finance Committee, and any other person from any fiduciary duty, responsibility or liability for the acquisition of, investment in, or retention of any security or interest therein of the Corporation or for any other transaction contemplated by this subsection and (B) provide for the United States to indemnify, defend, and hold harmless such persons against any and all liabilities, claims, actions, judgments, amounts paid in settlement, and costs and expenses actually incurred in connection with any matter so exempted in which it is determined that such persons were acting in good faith and in a manner they believed to not be opposed to the best interests of the plan.

"(6) Within fourteen months of the effective date of this subsection, the Association shall report to the Congress on the draft plan and on any legal obstacle to the ability of the Corporation to effectuate and implement an employee stock ownership plan of the nature contemplated by this subsection, including specific recommendations on amendments to this subsection and other relevant laws which would harmonize the requirements of this subsection with those other laws. The Department of Transportation and the Department of the Treastury, as each finds appropriate, shall provide separate comments to the Association for inclusion with such report.

"(7) For the purposes of this subsection, the officers of each duly authorized representative of the crafts or classes of the employees of the Corporation who have been given leaves of absence by the Corporation to serve as such officers, are to be eligible to participate in such plan on the same basis as are employees whose employment is governed by a collective bargaining agreement with the Corporation.".

sec. 4. (a) The first section of the Act // 43 USC 975. // entitled " An Act to authorize the President of the United States to locate, construct, and operate railroads in the Territory of Alaska, and for other purposes", approved March 12, 1914 (38 Stat. 305; 43 U. S.C. 957), is amended by inserting after "to fix compensation of all officers, agents, or other employees designated by him;" the following: "and, notwithstanding any other provision of law or regulation, to fix relocation, travel and transportation expenses for the General Manager of the railroad designated under this Act".

(b) This section // 43 USC 975. // shall apply to the General Manager serving on the date of enactment of this section with respect to relocation, travel, or transportation expenses which were incurred before or after the date of enactment of this section.

Sec. 5. Section 505 of the Railroad Revitalization and Regulatory Reform Act (45 U.S.C. 825) is amended by (a) striking the last sentence of subsection (d)(3) thereof; and (b) striking "purchase under this title after September 30, 1978," and inserting in lieu thereof ",after September 30, 1979, make commitments to purchase under this title" in subsection (e) thereof.

Sec. 6. (a) The Consolidated Rail Corporation shall (1) carry out such reconstruction of the railroad bridge over the Hudson River at Poughkeepsie, New York, as is necessary for the purposes of this section and make appropriate repairs and improvements in rail yards and tracks which service the rail system using such bridge, (2) restore freight service on such system at least to the extent provided prior to the fire damage to such bridge in 1974, and (3) take appropriate steps to promote the use of such system.

(b) There is authorized to be appropriated to the Secretary of Transportation not to exceed $9,000,000 for making payments to the Corporation to cover costs incurred pursuant to subsection (a)(1).

Sec. 7. Section 307 of the Regional Rail Reorganization Act // 45 USC 747. // is amended by inserting after subsection (b) a new subsection (c) as follows:

"(c) Monitoring of the Corporation.--(1) The Association shall also report to the Congress, in accordance with this subsection, on the policies of the Corporation and the results of such policies with respect to operations, cost containment, and marketing.

"(2) Within 90 days after the date of enactment of this subsection, the Association shall (A) subdivide each such policy area into constituent parts or groups of parts which are specific and significant, (B) identify the most appropriate indicia to reflect accurately such parts or groups of parts, and (C)(i) determine any and all deficiencies in data used to compute the values of such indicia including consistency and clarity of definitions, timeliness of data entry, editing and validation of input data, and processing, and (ii) outline the efforts of the Association and Corporation to correct the deficiencies and the results of such efforts. On or before the end of such 90-day period, the Association shall submit to the Congress such methodological information and additional information which the Association deems necessary or appropriate to further the purpose of this title.

"(3) Using such indicia, the Association shall report on (A) the relationship of each constituent part or groups of parts to the Corporation's revenue and capital and operating expenses, (B) the extent to which such parts or group of parts contributes to profits or losses, (C) the efforts of management to contain or reduce the contribution of such part or group of parts to losses, (D) the results of such efforts, and (E) such other information as the Association deems necessary or appropriate.

"(4) The Association shall (A) transmit to the Congress the first such monitoring report pursuant to paragraph (3) at the end of the first calendar quarter which begins after the end of the 90-day period for preparation and submission of the methodological information pursuant to paragraph (2), (B) report such monitoring information to the Congress at the end of the first quarter of each calendar year thereafter, (C) update methodological and monitoring information periodically as the Association deems necessary or appropriate, but in no case less frequently than once a year, and (D) where the results of such updating are statistically significant or relevant to Congressional policymaking, report them and the reasons for their significance at the end of the calendar quarter in which the updating occurred.".

Approved November 1, 1978.

LEGISLATIVE HISTORY:

HOUSE REPORT No. 95-1175, accompanying H.R. 12161 (Comm. on Interstate and Foreign Commerce).

SENATE REPORT No. 95-885 (Comm. on Commerce, Science, and Transportation).

CONGRESSIONAL RECORD, Vol. 124 (1978):

Aug. 1, considered and passed Senate. Oct. 6, 11, 15, H.R. 12161 considered and passed House; passage vacated, and

S. 2788, amended, passed in lieu.

PUBLIC LAW 95-564, 92 STAT. 2391, INTERNATIONAL MARITIME SATELLITE TELECOMMUNICATIONS ACT.

95th CONGRESS, H.R. 11209 NOVEMBER 1, 1978
An Act To provide for the establishment, ownership, operation,

and governmental oversight

and regulation of international maritime satellite

telecommunications

services.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That the Communications Satellite Act of 1962 is amended by adding at the end thereof the following new title: // 47 USC 701. //

" TITLE V--INTERNATIONAL MARITIME SATELLITE TELECOMMUNICATIONS

" SHORT TITLE

" Sec. 501. This title // 47 USC 751 // may be cited as the ' International Maritime Satellite Telecommunications Act'.

" DECLARATION OF POLICY AND PURPOSE

" Sec. 502. // 47 USC 751. // (a) The Congress hereby declares that it is the policy of the United States to provide for the participation of the United States in the International Maritime Satellite Organization (hereinafter in this title referred to as ' INMARSAT') in order to develop and operate a global maritime satellite telecommunications system. Such system shall have facilities and services which will serve maritime commercial and safety needs of the United States and foreign countries.

"(b) It is the purpose of this title to provide that the participation of the United States in INMARSAT shall be through the Communications Satellite Corporation, which constitutes a private entity operating for profit, and which is not an agency or establishment of the Federal Government.

" DESIGNATED OPERATING ENTITY

" Sec. 503. // 47 USC 752. // (a)(1) The Communications Satellite Corporation is hereby designated as the sole operating entity of the United States for participation in INMARSAT, for the purpose of providing international maritime satellite telecommunications services.

"(2) The corporation also shall have authority to participate in any other maritime satellite telecommunications system on an interim basis to serve the maritime commercial and safety needs of the United States through an interim operating arrangement in accordance with subsection (b).

"(3) The corporation may participate in and is hereby authorized to sign the operating agreement or other pertinent instruments of INMARSAT as the sole designated operating entity of the United States.

"(b)(1) The corporation may participate in any maritime satellite telecommunications system under subsection (a)(2) only if--,

"(A) the corporation signs the operating agreement of INMARSAT before beginning such participation;

"(B) such participation is in the nature of an interim operating arrangement remaining in effect only until INMARSAT begins its operations; and

"(C)(i) in the case of participation which may be undertaken only pursuant to a treaty or executive agreement, such treaty or executive agreement is in effect; or

"(ii) in any case in which participation does not require any treaty or executive agreement, the President does not disapprove such participation during the period of 60 calendar days after the corporation notifies the President of such proposed participation.

"(2) If the corporation participates in an interim operating arrangement

with a maritime satellite telecommunications system under this subsection, the provisions of this title relating to participation of the corporation in INMARSAT also shall apply to such interim participation.

"(3) Any disapproval by the President under paragraph (1)(C)(ii) shall be published in the Federal Register as soon as practicable after the date of such disapproval.

"(c) The corporation--,

"(1) may own and operate satellite earth terminal stations in the United States;

"(2) shall interconnect such stations, and the maritime satellite telecommunications provided by such stations, with the facilities and services of United States domestic common carriers and international common carriers, other than any common carrier or other entity in which the corporation has any ownership interest, as authorized by the Commission;

"(3) shall interconnect such stations and the maritime satellite telecommunications provided by such stations, with the facilities and services of private communications systems, unless the Commission finds that such interconnection will not serve the public interest; and

"(4) may establish, own, and operate the United States share of the jointly owned international space segment and associated ancillary facilities.

"(d) The corporation shall be responsible for fulfilling any financial obligation placed upon the corporation as a signatory to the operating agreement or other pertinent instruments, and any other financial obligation which may be placed upon the corporation as the result of a convention or other instrument establishing INMARSAT. The corporation shall be the sole United States representative in the managing body of INMARSAT.

"(e)(1) Any person, including the Federal Government or any agency thereof, may be authorized, in accordance with paragraph (2) or paragraph (3), to be the sole owner or operator, or both, of any satellite earth terminal station if such station is used for the exclusive purposes of training personnel in the use of equipment associated with the operation and maintenance of such station, or in carrying out experimentation relating to maritime satellite telecommunications services.

"(2) If the person referred to in paragraph (1) is the Federal Government or any agency thereof, such satellite earth terminal station shall have been authorized to operate by the executive department charged with such responsibility.

"(3) In any other case, such satellite earth terminal station shall have been authorized by the Commission.

"(f) The Commission may authorize ownership of satellite earth terminal stations by persons other than the corporation at any time the Commission determines that such additional ownership wll enhance the provision of maritime satellite services in the public interest.

"(g) The Commission shall determine the operational arrangements under which the corporation shall interconnect its satellite earth terminal station facilities and services with United States domestic common carrier, system, or other entity in which the corporation has any ownership interest, and private communications systems when authorized pursuant to subsection (c)(3) for the purpose of extending maritime satellite telecommunications services within the United States and in other areas. The initial determination of operational arrangements shall be made by the Commission no later than 6 months after the effective date of this title, and the Commission shall there-upon transmit to the Congress a report ralating to such determination.

"(h) Notwithstanding any provision of State law, the articles of incorporation of the corporation shall provide for the continued ability of the board of directors of the corporation to transact business under such circumstances of national emergency as the President or his delegate may determine would not permit a prompt meeting of the number of directors otherwise required to transact business.

" IMPLEMENTATION OF POLICY

" Sec. 504. // 47 USC 753. // (a) The Secretary of Commerce shall--,

"(1) coordinate the activities of Federal agencies with responsibilities in the field of telecommunications (other than the Commission), so as to ensure that there is full and effective compliance with the provisions of this title;

"(2) take all necessary steps to ensure the availability and appropriate utilization of the maritime satellite telecommunications services provided by INMARSAT for general governmental purposes, except in any case in which a separate telecommunications system is required to meet unique governmental needs or is otherwise required in the national interest;

"(3) exercise his authority in a manner which seeks to obtain coordinated and efficient use of the electromagnetic spectrum and orbital space, and to ensure the technical compatibility of the space segment with existing communications facilities in the United States and in foreign countries; and

"(4) take all necessary steps to determine the interests and needs of the ultimate users of the maritime satellite telecommunications system and to communicate the view of the Federal Government on utilization and user needs to INMARSAT.

"(b) The President shall exercise such supervision over, and issue such instructions to, the corporation in connection with its relationships and activities with foreign governments, international entities, and INMARSAT as may be necessary to ensure that such relationships and activities are consistent with the national interest and foreign policy of the United States.

"(c) The Commission shall--,

"(1) institute such proceedings as may be necessary to carry out the provisions of section 503 of this title;

"(2) make recommendations to the President for the purpose of assisting him in his issuance of instructions to the corporation;

"(3) grant such authorizations as may be necessary under title II and title III of the Communications Act of 1934

// 47 USC 201, 301 // to enable the corporation--,

"(A) to provide to the public, in accordance with section 503 (c)(2) of this title, space segment channels of communication obtained from INMARSAT; and

"(B) to construct and operate such satellite earth terminal stations in the United States as may be necessary to provide sufficient access to the space segment;

"(4) grant such other authorizations as may be necessary under title II and title III of the Communications Act of 1934 to carry out to the provisions of this title;

"(5) establish procedures to provide for the continuing review of the telecommunications activities of the corporation as the United States signatory to the operating agreement or other pertinent instruments; and

"(6) prescribe such rules as may be necessary to carry out the provisions of this title.

"(d) The Commission is authorized to issue instructions to the corporation with respect to regulatory matters within the jurisdiction of the Commission. In the event an instruction of the Commission conflicts with an instruction of the President pursuant to subsection (b), the instructions issued by the President shall prevail.

" STUDY OF STRUCTURE AND ACTIVITIES OF

COMMUNICATIONS SATELLITE

CORPORATION

" Sec. 505. // 47 USC 754. // (a) The Commission shall conduct a study of the corporate structure and operating activities of the corporation, with a view toward determining whether any changes are required to ensure that the corporation is able to effectively fulfill its obligations and carry out its functions under this Act and the Communications Act of 1934. // 47 USC 609. //

"(b) The Commission shall transmit a report to the Congress not later than 18 months after the effective date of this title relating to the study of the corporation conducted under subsection (a). Such report shall contain a detailed statement of the findings and conclusions of such study, any action taken by the Commission related to such findings and conclusions, and any recommendations of the Commission for such legislative or other action as the Commission considers necessary or appropriate.

" STUDY OF PUBLIC MARITIME COAST STATION SERVICES

" Sec. 506. // 47 USC 755. // (a) The Commission shall conduct a study of public maritime coast station services, with particular emphasis on high seas services, with a view toward determining whether the rules and regulations of the Commission and the assignment of licenses and radio frequencies in effect on the effective date of this title should be subject to any alteration in order to establish a systematic approach for the provision of modern and effective maritime telecommunications systems.

"(b) The Commission shall transmit a report to the Congress not

later than 12 months after the effective date of this title relating to the study of public maritime coast station services conducted under subsection (a). Such report shall contain a detaled statement of the findings and conclusions of such study, any action taken by the Commission related to such findings and conclusions, and any recommendations of the Commission for such legislative or othr action as the Commission considers necessary or appropriate.

" STUDY OF RADIO NAVIGATION SYSTEMS

" Sec. 507. // 47 USC 756. // (a) The President, in conjunction with Government agencies which will or may be affected by the development of a Government-wide radio navigation plan, shall conduct a study of all Government radio navigation systems to determine the most effective manner of reducing the proliferation and overlap of such systems. The objective of such study shall be the development of such a plan.

"(b) The President shall transmit a report to the Congress no later than 12 months after the effective date of this title relating to the study conducted under subsection (a) of this section. Such report shall contain a detailed statement of the findings and conclusions of such study, any action taken by the President related to such findings and conclusions, and any recommendations of the President for such legislation or other action as the President consders necessary or appropriate for implementation of a Government-wide radio navigation plan.

" DEFINITIONS

" Sec. 508. // 47 USC 757. // For purporses of this title--,

"(1) the term 'person' includes an individual, partnership, association, joint stock company, trust, or corporation;

"(2) the term 'satellite earth terminal station' means a complex of communications equipment located on land, operationally interconnected with one or more terrestrial communications systems, and capable of transmitting telecommunications to, or receiving telecommunications from, the space segment;

"(3) the term 'spacesegment' means any satellite (or capacity on a satellite) maintained under the authority of INMARSAT, for the purpose of providing international maritime telecommunications services, and the tracking telemetry, command, control, monitoring, and related facilities and equipment required to support the operation of such satellite; and

"(4) the term ' State' means the several States, the District of Columbia, the Commonwealth of Puerto Rico, Guam, the Virgin Islands, the Trust Territory of the Pacific Islands, and any other territory or possession of the United States.".

Approved November 1, 1978.

LEGISLATIVE HISTORY:

HOUSE REPORT No. 95 - 1134, Pt. I (Comm. on Interstate and Foreign Commerce)

CONGRESSIONAL RECORD, Vol. 124 (1978):

May 15, considered and passed House.

Aug. 7, considered and passed Senate, amended

Oct. 12, House concurred in Senate amendment with an amendment.

Oct. 13, House vacated proceedings of Oct. 12; receded, and concurred in Senate amendment with an amendment.

Oct.13, Senate concurre in House amendment.

PUBLIC LAW 95-563, 92 STAT. 2383, CONTRACT DISPUTES ACT OF 1978.

95th CONGRESS, H.R. 11002 NOVEMBER 1, 1978
An Act To provide for the resolution of claims and disputes

relating to Government

contracts awarded by executive agencies.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That this Act // 41 USC 601 // may be cited as the " Contract Disputes Act of 1978".

DEFINITIONS

Sec. 2. As used in this Act--, // 41 USC 601. //

(1) the term "agency head" means the head and any assistant head of an executive agency, and may "upon the designation by" the head of an executive agency include the chief official of any principal division of the agency;

(2) the term "executive agency" means an executive department as defined in section 101 of title 5, United States Code, an independent establishment as defined by section 104 of title 5, United States Code (except that it shall not include the General Accounting Office): a military department as defined by section 102 of title 5, United States Code, and a wholly owned Government corporation as defined by section 846 of title 31, United States Code, the United States Postal Service, and the Postal Rate Commission;

(3) The term "contracting officer" means any person who, by appointment in accordance with applicable regulations, has the authority to enter into and administer contracts and make determinations and findings with respect thereto. The term also includes the authorized representative of the contracting officer, acting within the limits of his authority;

(4) the term "contractor" means a party to a Government contract other than the Government;

(5) The term " Administrator" means the Administrator for Federal Procurement Policy appointed pursuant to the Office of Federal Procurement Policy Act;

(6) The term "agency board" means an agency board of contract appeals established under section 8 of this Act; and

(7) The term "misrepresentation of fact" means a false statement of substantive fact, or any conduct which leads to a belief of a substantive fact material to proper understanding of the matter in hand, made with intent to deceive or mislead.

APPLICABILITY OF LAW

Sec. 3. (a) Unless otherwise specifically provided herein, this Act // 41 USC 602. // applies to any express or implied contract (including those of the nonappropriated fund activities described in sections 1346 and 1491 of title 28, United States Code) entered into by an executive agency for--,

(1) the procurement of property, other than real property in being;

(2) the procurement of services;

(3) the procurement of construction, alteration, repair or maintenance of real property; or,

(4) the disposal of personal property.

(b) With respect to contracts of the Tennessee Valley Authority, the provisions of this Act shall apply only to those contracs which contain a disputes clause requiring that a contract dispute be resolved through an agency administrative process. Notwithstanding any other provision of this Act, contracts of the Tennessee Valley Authority for the sale of fertilizer or electric power or related to the conduct or operation of the electric power system shall be excluded from the Act.

(c) This Act does not apply to a contract with a foreign government, or agency thereof, or international organization, or subsidiary body thereof, if the head of the agency determines that the application of the Act to the contract would not be in the public interest.

MARITIME CONTRACTS

Sec. 4. Appeals under paragraph (g) of section 8 and suits under section 10, // 41 USC 603. // arising out of maritime contracts, shall be governed by the Act of March 9, 1920, as amended (41 Stat. 525, as amended; 46 U.S.C. 741 - 752) or the Act of March 3, 1925, as amended (43 Stat. 1112, as amended; 46 U.S.C. 781 - 790) as applicable, to the extent that those Acts are not inconsistent with this Act.

FRAUDULENT CLAIMS

Sec. 5. // 41 USC 604. // If a contractor is unable to support any part of his claim and it is determined that such inability is attributable to misrepresentation of fact or fraud on the part of the contractor, he shall be liable to the Government for an amount equal to such unsupported part of the claim in addition to all costs to the Government attributable to the cost of reviewing said part of his claim. Liability under this subsection shall be determined within six years of the commission of such misrepresentation of fact or fraud.

DECISION BY THE CONTRACTING OFFICER

Sec. 6. // 41 USC 605. // (a) All claims by a contractor against the government relating to a contract shall be in writing and shall be submitted to the contracting officer for a decision. All claims by the government against a contractor relating to a contract shall be the subject of a decision by the contracting officer. The contracting officer shall issue his decisions in writing, and shall mail or otherwwise furnish a copy of the decision to the contractor. The decision shall state the reasons for the decision reached, and shall inform the contractor of his rights as provided in this Act. Specific findings of fact are not required, but, if made, shall not be binding in any subsequent proceeding. The authority of this subsection shall not extend to a claim or dispute for penalties or forfeitures prescribed by statute or regulation which another Federal agency is specifically authorized to administer, settle, or determine. This section shall not authorize any agency head to settle, compromise, pay, or otherwise adjust any claim involving fraud.

(b) The contracting officer's decision on the claim shall be final and conclusive and not subject to review by any forum, tribunal, or Government agency, unless an appeal or suit is timely commenced as authorized by this Act. Nothing in this Act shall prohibit executive agencies from including a clause in government contracts requiring that pending final decision of an appeal, action, or final settlement, a contractor shall proceed diligently with performance of the contract in accordance with the contracting officer's decision.

(c) (1) A contracting officer shall issue a decision on any submitted claim of $50,000 or less within sixty days from his receipt of a written request from the contractor that a decision be rendered within that period. For claims of more than $50,000, the contractor shall certify that the claim is made in good faith, that the supporting data are accurate and complete to the best of his knowledge and belief, and that the amount requested accurately reflects the contract adjustment for which the contractor believes the government is liable.

(2) A contracting officer shall, within sixty days of receipt of a submitted certified claim over $50,000--,

(A) issue a decision; or

(B) notify the contractor of the time within which a decision will be issued.

(3) The decision of a contracting officer on submitted claims shall be issued within a reasonable time, in accordance with regulations promulgated by the agency, taking into account such factors as the size and complexity of the claim and the adequacy of the information in support of the claim provided by the contractor.

(4) A contractor may request the agency board of contract appeals to direct a contracting officer to issue a decision in a specified period of time, as determined by the board, in the event of undue delay on the part of the contracting officer.

(5) Any failure by the contracting officer to issue a decision on a contract claim within the period required will be deemed to be a decision by the contracting officer denying the claim and will authorize the commencement of the appeal or suit on the claim as otherwise provided in this Act. However, in the event an appeal or suit is so commenced in the absence of a prior decision by the contracting officer, the tribunal concerned may, at its option, stay the proceedings to obtain a decision on the claim by the contracting officer.

CONTRACTOR'S RIGHT OF APPEAL TO BOARD OF CONTRACT

APPEALS

Sec. 7. // 41 USC 606. // Within ninety days from the date of receipt of a contracting officer's decision under section 6, the contractor may appeal such decision to an agency board of contract appeals, as provided in section 8.

AGENCY BOARDS OF CONTRACT APPEALS

Sec. 8 // 41 USC 607. // (a) (1) Except as provided in paragraph (2) an agency board of contract appeals may be established within an executive agency when the agency head, after consultation with the Administrator, determines from a workload study that the volume of contract claims justifies the establishment of a full-time agency board of at least three members who shall have no other inconsistent duties. Workload studies will be updated at least once every three years and submitted to the Administrator.

(2) The Board of Directors of the Tennessee Valley Authority may establish a board of contract appeals for the Authority of an indeterminate number of members.

(b) (1) Except as provided in paragraph (2), the members of agency boards shall be selected and appointed to serve in the same manner as hearing examiners appointed pursuant to section 3105 of title 5 of the United States Code, with an additional requirement that such members shall have had not fewer than five years' experience in public contract law. Full-time members of agency boards serving as such on the effective date of this Act shall be considered qualified. The chairman and vice chairman of each board shall be designated by the agency head from members so appointed. The chairman of each agency board shall receive compensation at a rate equal to that paid a GS - 18 under the General Schedule contained in section 5332. United States Code // 5 USC 5332. // the vice chairman shall receive compensation at a rate equal to that paid a GS - 17 under such General Schedule, and all other members shall receive compensation at a rate equal to that paid a GS - 16 under such General Schedule. Such positions shall be in addition to the number of positions which may be placed in GS - 16, GS - 17, and GS - 18 of such General Schedule under existing law.

(2) The Board of Directors of the Tennessee Valley Authority shall establish criteria for the appointment of members to its agency board of contract appeals established in subsection (a)(2), and shall designate a chairman of such board. The chairman of such board shall receive compensation at a rate equal to the daily rate paid a GS - 18 under the General Schedule contained in section 5332, United States Code for each day he is engaged in the actual performance of his duties as a member of such board. All other members of such board shall receive compensation at a rate equal to the daily rate paid a GS - 16 under such General Schedule for each day they are engaged in the actual performance of their duties as members of such board.

(c) If the volume of contract claims is not sufficient to justify an agency board under subsection (a) or if he otherwise considers it appropriate, any agency head shall arrange for appeals from decisions by contracting officers of his agency to be decided by a board of contract appeals of another executive agency. In the event an agency head is unable to make such an arrangement with another agency, he shall submit the case to the Administrator for placement with an agency board. The provisions of this subsection shall not apply to the Tennessee Valley Authority.

(d) Each agency board shall have jurisdiction to decide any appeal from a decision of a contracting officer (1) relative to a contract made by its agency, and (2) relative to a contract made by any other agency when such agency or the Administrator has designated the agency board to decide the appeal. In exercising this jurisdiction, the agency board is authorized to grant any relief that would be available to a litigant asserting a contract claim in the Court of Claims.

(e) An agency board shall provide to the fullest extent practicable, informal, expeditious, and inexpensive resolution of disputes, and shall issue a decision in writing or take other appropriate action on each appeal submitted, and shall mail or otherwise furnish a copy of the decision to the contractor and the contracting officer.

(f) The rules of each agency board shall include a procedure for the accelerated disposition of any appeal from a decision of a contracting officer where the amount in dispute is $50,000 or less. The accelerated procedure shall be applicable at the sole election of only the contractor. Appeals under the accelerated procedure shall be resolved, whenever possible, within one hundred and eighty days from the date the contractor elects to utilize such procedure.

(g)(1) The decision of an agency board of contract appeals shall be final, except that--,

(A) a contractor may appeal such a decision to the Court of Claims within one hundred twenty days after the date of receipt of a copy of such decision, or

(B) the agency head, if he determines that an appeal should be taken, and with the prior approval of the Attorney General, transmits the decision of the board of contract appeals to the United States Court of Claims for judicial review, under section 2510 of title 28, United States Code, as amended herein, within one hundred and twenty days from the date of the agency's receipt of a copy of the board's decision.

(2) Notwithstanding the provisions of paragrah (1), the decision of the board of contract appeals of the Tennessee Valley Authority shall be final, except that--,

(A) a contractor may appeal such a decision to a United States district court pursuant to the provisions of section 1337 of title 28, United States Code within one hundred twenty days after the date of receipt of a copy of such decision, or

(B) The Tennessee Valley Authority may appeal the decision to a United States district court pursuant to the provisions of section 1337 of title 28, United States Code, within one hundred twenty days after the date of the decision in any case.

(h) Pursuant to the authority conferred under the Office of Federal Procurement Policy Act, // 41 USC 401 // the Administrator is authorized and directed, as may be necessary or desirable to carry out the provisions of this Act, to issue guidelines with respect to criteria for the establishment, functions, and procedures of the agency boards (except for a board established by the Tennessee Valley Authority).

(i) Within one hundred and twenty days from the date of enactment of this Act, all agency boards, except that of the Tennessee Valley Authority, of three or more full time members shall develop workload studies for approval by the agency head as specified in section 8(a) (1).

SMALL CLAIMS

Sec. 9. // 41 USC 608 // (a) The rules of each agency board shall include a procedure for the expedited disposition of any appeal from a decision of a contracting officer where the amount in dispute is $10,000 or less. The small claims procedure shall be applicable at the sole election of the contractor.

(b) The small claims procedure shall provide for simplified rules of procedure to facilitate the decision of any appeal thereunder. Such appeals may be decided by a single member of the agency board with such concurrences as may be provided by rule or regulation.

(c) Appeals under the small claims procedure shall be resolved, whenever possible, within one hundred twenty days from the date on which the contractor elects to utilize such procedure.

(d) A decision against the Government or the contractor reached under the small claims procedure shall be final and conclusive and shall not be set aside except in cases of fraud.

(e) Administrative determinations and final decisions under this section shall have no value as precedent for future cases under this Act.

(f) The Administrator is authorized to review at least every three years, beginning with the third year after the enactment of the Act, the dollar amount defined in section 9(a) as a small claim, and based upon economic indexes selected by the Administrator adjust that level accordingly.

ACTIONS IN COURT: JUDICIAL REVIEW OF BOARD

DECISIONS

Sec. 10. // 41 USC 609. // (a)(1) Except as provided in paragraph (2), and in lieu of appealing the decision of the contracting officer under section 6 to an agency board, a contractor may bring an action directly on the claim in the United States Court of Claims, notwithstanding any contract provision, regulation, or rule of law to the contrary.

(2) In the case of an action against the Tennessee Valley Authority, the contractor may only bring an action directly on the claim in a United States district court pursuant to section 1337 of title 28, United States Code, notwithstanding any contract provision, regulation, or rule of law to the contrary.

(3) Any action under paragraph (1) (2) shall be filed within twelve months from the date of the receipt by the contractor of the decision of the contracting officer concerning the claim, and shall proceed de novo in accordance with the rules of the appropriate court.

(b) In the event of an appeal by a contractor or the Government from a decision of any agency board pursuant to section 8, notwithstanding any contract provision, regulation, or rules of law to the contrary, the decision of the agency board on any question of law shall not be final or conclusive, but the decision on any question of fact shall be final and conclusive and shall not be set aside unless the decision is fraudulent, or arbitrary, or capricious, or so grossly erroneous as to necessarily imply bad faith, or if such decision is not supported by substantial evidence.

(c) In any appeal by a contractor or the Government from a decision of an agency board pursuant to section 8, the court may render an opinion and judgment and remand the case for further action by the agency board or by the executive agency as appropriate, with such direction as the court considers just and proper, or, in its discretion and in lieu of remand it may retain the case and take such additional evidence or action as may be necessary for final disposition of the case.

(d) If two or more suits arising from one contract are filed in the Court of Claims and one or more agency boards, for the convenience of parties or witnesses or in the interest of justice, the Court of Claims may order the consolidation of such suits in that court or transfer any suits to or among the agency boards involved.

(e) In any suit filed pursuant to this Act involving two or more claims, counterclaims, cross-claims, or third-party claims, and where a portion of one such claim can be divided for purposes of decision or judgment, and in any such suit where multiple parties are involved, the court, whenever such action is appropriate, may enter a judgment as to one or more but fewer than all of the claims, portions thereof, or parties.

SUPENA, DISCOVERY, AND DEPOSITION

Sec. 11. // 41 USC 610. // A member of an agency board of contract appeals may administer oaths to witnesses, authorize depositions and discovery proceedings, and require by subpena the attendance of witnesses, and production of books and papers, for the taking of testimony or evidence by deposition or in the hearing of an appeal by the agency board. In case of contumacy or refusal to obey a subpena by a person who resides, is found, or transacts business within the jurisdiction of a United States district court, the court, upon application of the agency board through the Attorney General; or upon application by the board of contract appeals of the Tennessee Valley Authority, shall have jurisdiction to issue the person an order requiring him to appear before the agency board or a member thereof, to produce evidence or to give testimony, or both. Any failure of any such person to obey the order of the court may be punished by the court as a contempt thereof.

INTEREST

Sec. 12. // 41 USC 611. // Interest on amounts found due contractors on claims shall be paid to the contractor from the date the contracting officer receives the claim pursuant to section 6(a) from the contractor until payment thereof. The interest provided for in this section shall be paid at the rate established by the Secretary of the Treasury pursuant to Public Law 92 - 41 (85 Stat. 97) for the Renegotiation Board.

APPROPRIATIONS

Sec. 13. // 41 USC 612. // (a) Any judgment against the United States on a claim under this Act shall be paid promptly in accordance with the procedures provided by section 1302 of the Act of July 27, 1956, (70 Stat. 694, as amended; 31 U.S.C. 724a).

(b) Any monetary award to a contractor by an agency board of contract appeals shall be paid promptly in accordance with the procedures contained in subsection (a) above.

(c) Payments made pursuant to subsections (a) and (b) shall be reimbursed to the fund provided by section 1302 of the Act of July 27, 1956, (70 Stat. 694, as amended; 31 U.S.C. 724a) by the agency whose appropriations were used for the contract out of available funds or by obtaining additional appropriations for such purposes.

(d)(1) Notwithstanding the provisions of subsection (a) through (c), any judgment against the Tennessee Valley Authority on a claim under this Act shall be paid promptly in accordance with the provisions of section 9(b) of the Tennessee Valley Authority Act of 1933 (16 U.S.C. 831(h)). // 16 USC 831h. //

(2) Notwithstanding the provisions of subsection (a) through (c), any monetary award to a contractor by the board of contract appeals for the Tennessee Valley Authority shall be paid in accordance with the provisions of section 9(b) of the Tennessee Valley Authority Act of 1933 (16 U.S.C. 831(h)).

AMENDMENTS AND REPEALS

Sec. 14. (a) The first sentence of section 1346(a) (2) of title 28, United States Code, is amended by inserting before the period a comma and the following: "except that the district courts shall not have jurisdiction of any civil action or claim against the United States founded upon any express or implied contract with the United States or for liquidated or unliquidated damages in cases not sounding in tort which are subject to sections 8(g) (1) and 10(a) (1) of the Contract Disputes Act of 1978".

(b) Section 2401 (a) of title 28, United States Code, is amended by striking out " Every" at the beginning and inserting in lieu thereof " Except as provided by the Contract Disputes Act of 1978, every".

(c) Section 1302 of the Act of July 27, 1956, as amended (70 Stat. 694, as amended; 31 U.S.C. 724a), is amended by adding after "2677 of title 28" the words "and decisions of boards of contract appeals".

(d) Section 2414 of title 28, United States Code, is amended by striking out " Payment" at the beginning and inserting in lieu thereof " Except as privided by the Contract Disputes Act of 1978, payment".

(e) Section 2517(a) of title 28, United Stated Code, is amended by striking out " Every" at the beginning and inserting in lieu thereof " Exceptas provided by the Contract Disputes of 1978, every".

(f) Section 2517(b) of title 28, United States Code, is amended by inserting after "case or controversy" the following:", unless the judgment is designated a partial judgment, in which event only the matters described therein shall be discharged,".

(g) There shall be added to subsection (c) of section 5108 of title 5, United States Code, a paragraph (17) reading as follows:

"(17) the heads of executive departments or agencies in which boards of contract appeals are established pursuant to the Contract Disputes Act of 1978, and subject to the standards and procedures prescribed by this chapter, but without regard to subsection (d) of this section, may place additional positions, not to exceed seventy in number, in GS - 16, GS - 17, and GS - 18 for the independent quasi-judicial determination of contract disputes, with the allocation of such positions among such executive deaprtments and agencies determined by the Administrator for Federal Procurement Policy on the basis of relative case load." (h)(1) Section 2510 of title 28, United States Code, is amended by--,

(A) inserting "(a)" immediately before such section; and

(B) adding the following new subsection at the end thereof:

"(b)(1) The head of any executive department or agency may, with the prior approval of the Attorney General, refer to the Court of Claims for judicial review any final decision rendered by a board of contract appeals pursuant to the terms of any contract with the United States awardedby that department or agency which such head of such department or agency has concluded is not entitled to finality pursuant to the review standards specified in section 10(b) of the Contracts Disputes Act of 1978. The head of each executive department or agency shall make any referral under this section within one hundred and twenty days of the receipt of a copy of the final appeal decision.

"(2) The Court of Claims shall review the matter referred in accordance with the standards specified in section 10(b) of the Contracts Disputes Act of 1978. The Court shall proceed with judicial review on the administrative record made before the board of contract appeals on matters so referred as in other cases pending in such court, shall determine the issue of finality of the appeal decision, and shall, as appropriate, render judgment thereon, take additional evidence, or remand the matter pursuant to the authority specified in section 1491 of this title.". // 28 USC 1491. //

(2)(A) The section heading of such section is amended to read as follows:

Sec. 2510. Referral of cases by the Comptroller General or the head of an executive department or agency.".

(B) The item relating to section 2510 in the table of sections for chapter 165 of title 28, United States Code, is amended to read as follows:

"2510. Referral of cases by the Omptroller General or the head of an executive department or agency.".

(i) Section 1491 of title 28, United States Code, is amended by adding the following sentence at the end of the first paragraph thereof: " The Court of Claims shall have jurisdiction to render judgment upon any claim by or against, or dispute with, a contractor arising under the Contract Disputes Act of 1978.".

SEVERABILITY CLAUSE

Sec. 15. If any provision of this Act, // 41 USC 613. // or the application of such provision to any persons or circumstances, is held invalid, the remainder of this Act, or the application of such provision to persons or circumstances other than those to which it is held invalid, shall not be affected thereby.

EFFECTIVE DATE OF ACT

Sec. 16. This Act // 41 USC 601. // shall apply to contracts entered into one hundred twenty days after the date of enactment. Notwithstanding any provision in a contract made before the effective date of this Act, the contractor may elect to proceed under this Act with respect to any claim pending then before the contracting officer or initiated thereafter.

Approved November 1, 1978.

LEGISLATIVE HISTORY:

HOUSE REPORT No. 95 - 1556 (Comm. on the Judiciary).

SENATE REPORT No. 95 - 1118, accompanying S. 3178 (Comm. on Governmental Affairs and Comm. on the Judiciary).

CONGRESSIONAL RECORD, Vol. 124 (1978):

Sept. 26, considered and passed House.

Oct. 12, considered and passed Senate, amended.

Oct. 13, House concurred in Senate amendments.

WEEKLY COMPILATION OF PRESIDENTIAL DOCUMENTS, Vol. 14, No. 44: Nov. 1, Presidential Statement.

PUBLIC LAW 95-562, 92 STAT. 2381,

95th CONGRESS, S. 976. NOVEMBER 1, 1978.
An Act To amend the Perishable Agricultural Commodities Act.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,

Section 1. (a) Effective January 1, 1979, section 1 of the Perishable Agricultural Commodities Act, 1930 (7 U.S.C. 499a), is amended by--,

(1) in subsection (6), striking out "$100,000" and inserting in lieu thereof "$200,000"; and

(2) in subsection (7), striking out "$100,000" and inserting in lieu thereof "$200,000".

(b) Section 1 of the Perishable Agricultural Commodities Act, 1930, is further amended by inserting in subsection (6) immediately after

"(C) no person buying any commodity" the following: "other than potatoes", except that no person buying potatoes for processing solely within the State where grown shall be deemed or considered to be a dealer under subsection (6) of section 1, // 7 USC 499a note. // as amended by this subsection, until January 1, 1982.

Sec. 2. Section 3(b) of the Perishable Agricultural Commodities Act, 1930 (7 U.S.C. 499c(b)), is amended by--,

(1) inserting immediately before the period at the end of the second sentence the following: "and to be furnished thereafter";

(2) striking out "$100" in the third sentence and inserting in lieu thereof the following: "$150, plus $50 for each branch or additional business facility operated by the applicant in excess of nine such facilities, as determined by the Secretary. Total annual fees for any applicant shall not exceed $1,000 in the aggregate";

(3) inserting immediately after "referred to above:" in the fourth sentence the following: " Provided, That the amount of money accumulated and on hand in the special fund at the end of any fiscal year shall not exceed 25 percent of the projected budget for the next following fiscal year:"; and

(4) inserting "further" immediately after " Provided" in the fourth sentence.

Sec. 3. Section 13 of the Perishable Agricultural Commodities Act, 1930 (7 U.S.C. 499m), is amended by renumbering subsections (b) through (e) as subsections (c) through (f) and adding a new subsection (b) as follows:

"(b) The Secretary or the Secretary's duly authorized agents, in order to isure that the prompt payment provision of section 2(4) of this Act // 7 USC 499b. // is being complied with, shall from time to time inspect the accounts, records, and memoranda of any commission merchant, dealer, or broker determined in a formal disciplinary proceeding under section 6(b) of this Act // 7 USC 499f. // to have violated such provision. The Secretary may also require that any such commission merchant, dealer, or broker furnish, maintain, and from time to time adjust a surety bond in form and amount satisfactory to the Secretary as assurance that such commission merchant's, dealer's, or broker's business will be conducted in accordance with this Act and that such commission merchant, dealer, or broker will pay all reparation awards, subject to its right of appeal under section 7(c) of this Act: Provided, That if such surety bond is furnished, maintained, and adjusted as required by the Secretary, the Secretary shall not thereafter inspect the accounts, records, and memoranda of such commission merchant, dealer, or broker under this subsection more than once a year. If any such commission merchant, dealer, or broker refuses to permit such inspection or fails or refuses to furnish, maintain, or adjust such surety bond, the Secretary may publish the facts and circumstances and, by order, suspend the license of the offender until permission to make such inspection is given or such surety bond is furnished, maintained, or adjusted.".

Sec. 4. Section 3(b) of the Farm Labor Contractor Registration Act of 1963 (7 U.S.C. 2042(b)) is amended by--,

(1) striking out "or" at the end of paragraph (8), striking out the period at the end of paragraph (9) and inserting in lieu thereof a semicolon and "or"; and

(2) adding at the end thereof a new paragraph (10) as follows:

(10) any person who would be required to register solely because the person is engaged in any such activity solely for the purpose of supplying full-time students or other persons whose principal occupation is not farmwork to detassel and rogue hybrid seed corn or sorghum for seed and to engage in other incidental farmwork for a period not to exceed four weeks in any calendar year: Provided, That such students or other persons are not required by the circumstances of such activity to be away from their permanent place of residence overnight: Provided further, That such students or other persons, if under 18 years of age, are not engaged in providing transportation in vehicles caused to be operated by the contractor.".

Approved November 1, 1978.

LEGISLATIVE HISTORY:

HOUSE REPORT No. 95 - 1620, accompanying H.R. 13845 (Comm. on Agriculture).

SENATE REPORT No. 95 - 1156 (Comm. on Agriculture, Nutrition, and Forestry).

CONGRESSIONAL RECORD, Vol. 124 (1978):

Sept. 8, considered and passed Senate.

Oct. 3, 4, H.R. 13854 considered and passed House; passage vacated and S. 976,

amended, passed in lieu.

Oct. 13, Senate concurred in House amendments with an amendment.

Oct. 13, House concurred in Senate amendment.

PUBLIC LAW 95-561, 92 STAT. 2143, EDUCATION AMENDMENTS OF 1978

95th CONGRESS, H.R. 15 NOVEMBER 1, 1978
An Act To extend and amend expiring elementary and secondary

education programs,

and for other purposes.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That this Act // 20 USC 2701 // may be cited as the " Education Amendments of 1978".

TABLE OF CONTENTS TITLE I--AMENDMENT TO TITLE I OF THE ELEMENTARY

AND

SECONDARY EDUCATION ACT OF 1965

Sec. 101. Special educational programs and projects for educationally deprived children.

" TITLE I--FINANCIAL ASSISTANCE TO MEET SPECIAL EDUCATIONAL NEEDS OF CHILDREN

" Sec. 101. Declaration of policy.

" Sec. 102. Duration of assistance.

" Part A--Programs Operated by Local Educational

Agencies

" Subpart 1--Basic Grants

" Sec. 111. Grants--Amount and eligibility.

" Sec. 112. Treatment of earnings for purposes of aid to families with dependent children.

" Subpart 2--Special Grants

" Sec. 116. Special incentive grants.

" Sec. 117. Grants for local educational agencies in counties with especially high concentrations of children from low-income families.

" Subpart 3--Program Requirements and Applications

" Sec. 121. Local program application. " Sec. 122. Designating school attendance areas.

" Sec. 123. Children to be served.

" Sec. 124. Requirements for design and implementation of programs.

" Sec. 125. Parental involvement. " Sec. 126. Funds allocation.

" Sec. 127. Accountability.

" Sec. 128. Complaint resolution.

" Sec. 129. Individualized plans.

" Sec. 130. Participation of children enrolled in private schools.

" Subpart 4--Exemptions From Certain Program

Requirements

" Sec. 131. Exclusions from excess costs and comparability provisions for certain special State and local programs.

" Sec. 132. Limited exemption to supplement, not supplant, requirement where certain special programs for educationally deprived children are fully funded.

" Sec. 133. Schoolwide projects.

" Sec. 134. Noninstructional duties.

" Part B--Programs Operated by State Agencies " Subpart 1--Programs for Migratory Children

" Sec. 141. Grants--Entitlement and amount.

" Sec. 142. Program requirements.

" Sec. 143. Coordination of migrant education activities.

" Subpart 2--Programs for Handicapped Children

" Sec. 146. Amount and eligibility.

" Sec. 147. Program requirements.

" Subpart 3--Programs for Neglected and Delinquent

Children

" Sec. 151. Amount and entitlement.

" Sec. 152. Program requirement.

" Sec. 153. Transition services.

" Subpart 4--General Provisions for State Operated

Programs

" Sec. 156. Reservation of funds for territories.

" Sec. 157. Minimum payments for State operated programs.

" Part C--State Administration of Programs and

Projects

" Subpart 1--Applicability; State Applications

" Sec. 161. Applicability.

" Sec. 162. State applications.

" Subpart 2--Duties Imposed on State Educational

Agencies

" Sec. 164. Application approval.

" Sec. 165. State rulemaking.

" Sec. 166. Technical assistance and dissemination of information.

" Sec. 167. Monitoring.

" Sec. 168. Complaint resolution.

" Sec. 169. Withholding of payments.

" Sec. 170. Audits and audit resolution.

" Subpart 3--Responsibilities of State Educational

Agencies to Commissioner

" Sec. 171. State monitoring and enforcement plans.

" Sec. 172. Reporting.

" Sec. 173. Recordkeeping, fiscal control, and fund accounting.

" Sec. 174. Prohibition of consideration of Federal aid in determining State aid.

" Part D--Federal Administration of Programs and

Projects

" Sec. 181. Applicability.

" Sec. 182. Approval of applications.

" Sec. 183. Program evaluation.

" Sec. 184. Complaint resolution.

" Sec. 185. Audits and audit resolution.

" Sec. 186. Withholding of payments.

" Sec. 187. Policy manual.

" Sec. 188. Enforcement report.

" Part E--Payments

" Sec. 191. Payment methods.

" Sec. 192. Amount of payments to local educational agencies.

" Sec. 193. Adjustments where necessitated by appropriations.

" Sec. 194. Payments for State administration.

" Part F--General Provisions

" Sec. 195. Judicial review.

" Sec. 196. National Advisory Council.

" Sec. 197. Limitation on grant to Puerto Rico.

" Sec. 198. Definitions.". Sec. 102. Study of alternatives for demonstrating comparability.

TITLE II-- ESTABLISHMENT OF A NEW TITLE II OF THE

ELEMENTARY

AND SECONDARY EDUCATION ACT OF 1965

Sec. 201. Basic skills.

" TITLE II-- BASIC SKILLS IMPROVEMENT " Part A--National Program

" Sec. 201. Purpose.

" Sec. 202. Applications.

" Sec. 203. Acceptance of gifts.

" Sec. 204. Grants and contracts. " Sec. 205. Instruction in basic skills.

" Sec. 206. Parental participation in basic skills instruction.

" Sec. 207. Use of technology in basic skills instruction.

" Sec. 208. Involvement of educational agencies and private organizations.

" Sec. 209. Collection and dissemination of information relating to basic skills programs.

" Sec. 210. Coordination.

" Part B--State Basic Skills Improvement Program

" Sec. 221. Statement of purpose.

" Sec. 222. Agreements with State educational agencies.

" Sec. 223. Distribution of funds.

" Sec. 224. State leadership program.

" Part C--Special Programs for Improving Basic Skills

" Sec. 231. Inexpensive book distribution program for reading motivation.

" Sec. 232. Special mathematics program.

" Part D--General Provisions

" Sec. 241. Authorization of appropriations.

" Sec. 242. Apportionment of appropriations.".

TITLE III-- ESTABLISHMENT OF A NEW TITLE III OF

THE ELEMENTARY

AND SECONDARY EDUCATION ACT OF 1965

Sec. 301. Special projects.

" TITLE III-- SPECIAL PROJECTS " Part A--General Provisions

" Sec. 301. Statement of purpose.

" Sec. 302. Grants and contracts authorized.

" Sec. 303. Commissioner's discretionary projects.

" Part B--Metric Education

" Sec. 311. Short title; declaration of purpose.

" Sec. 312. Program authorized.

" Sec. 313. Application.

" Sec. 314. Authorization of appropriations.

" Part C--Arts in Education

" Sec. 321. Short title; statement of findings.

" Sec. 322. Program authorized.

" Sec. 323. Authorization of appropriations.

" Part D--Preschool Partnership Programs

" Sec. 325. Establishment of program.

" Part E--Consumer Education

" Sec. 331. Short title; statement of findings.

" Sec. 332. Office of Consumers' Education.

" Sec. 333. Program authorized.

" Sec. 334. Application.

" Sec. 335. Reports and evaluations.

" Sec. 336. Reservation of funds.

" Part F--Youth Employment

" Sec. 341. Program authorized.

" Sec. 342. Authorization of appropriations.

" Part G--Law-Related Education

" Sec. 346. Short title; declaration of findings.

" Sec. 347. Program authorized.

" Sec. 348. Authorization of appropriations.

" Part H--Environmental Education

" Sec. 351. Short title; declaration of findings; purpose.

" Sec. 352. Office of Environmental Education.

" Sec. 353. Program authorized.

" Sec. 354. Application.

" Sec. 355. Technical assistance.

" Sec. 356. Special grants.

" Sec. 357. Administration.

" Sec. 358. Authorization of appropriations.

" Part I--Health Education

" Sec. 361. Short title; declaration of purpose.

" Sec. 362. Program authorized.

" Sec. 363. Application.

" Sec. 364. Authorization of appropriations.

" Part J--Correction Education

" Sec. 371. Short title.

" Sec. 372. Program authorized.

" Sec. 373. Technical assistance.

" Sec. 374. Authorization of appropriations.

" Part K--Dissemination of Information

" Sec. 376. Dissemination of information.

" Part L--Biomedical Sciences

" Sec. 381. Findings and purpose.

" Sec. 382. Definitions.

" Sec. 383. Projects for economically disadvantaged students.

" Sec. 384. Project activities.

" Sec. 385. Applications.

" Sec. 386. Use of funds.

" Sec. 387. Appropriations authorized.

" Part M--Population Education

" Sec. 391. Short title.

" Sec. 392. Program authorized.".

TITLE IV-- AMENDMENT TO TITLE IV OF THE ELEMENTARY

AND

SECONDARY EDUCATION ACT OF 1965

Sec. 401. Libraries, learning resources, educational innovation and support.

" TITLE IV-- EDUCATIONAL IMPROVEMENT, RESOURCE, AND SUPPORT " Part A--General Provisions

" Sec. 401. Purpose.

" Sec. 402. Authorization of appropriations.

" Sec. 403. Allotments to States.

" Sec. 404. State plans.

" Sec. 405. Payments to States.

" Sec. 406. Participation of children enrolled in private schools.

" Part B--Instructional Materials and School Library

Resources

" Sec. 421. Activities authorized.

" Sec. 422. Program requirements.

" Part C--Improvement in Local Educational Practices

" Sec. 431. Activities authorized.

" Sec. 432. Program requirements.

" Part D--Guidance, Counseling, and Testing

" Sec. 441. Program authorized.

" Sec. 442. Program requirements.

" Sec. 443. Administration.".

TITLE V--ESTABLISHMENT OF NEW TITLE V OF THE ELEMENTARY AND SECONDARY EDUCATION ACT OF 1965

Sec. 501. State leadership.

" TITLE V--STATE LEADERSHIP

" Part A--Administration of Education Programs and Duties of the State Educational Agency

" Sec. 501. Single State application.

" Sec. 502. Single local educational agency application.

" Sec. 503. Application approval.

" Sec. 504. State rulemaking.

" Sec. 505. Technical assistance and dissemination of information.

" Sec. 506. Monitoring.

" Sec. 507. Complaint resolution.

" Sec. 508. Withholding of payments.

" Sec. 509. Audits and audit resolution.

" Sec. 510. Payments; authorization.

" Part B--Strengthening State Educational Management

" Sec. 521. Activities authorized.

" Sec. 522. Program requirements.

" Sec. 523. Authorization of appropriations.

" Part C--Councils on Quality in Education

" Sec. 531. National and State advisory councils.".

TITLE VI-- ESTABLISHMENT OF A NEW TITLE VI OF THE

ELEMENTARY

AND SECONDARY EDUCATION ACT OF 1965

Sec. 601. Emergency school aid.

" TITLE VI-- EMERGENCY SCHOOL AID

" Sec. 601. Short title.

" Sec. 602. Findings and purpose.

" Sec. 603. Policy with respect to the application of certain provisions of Federal law.

" Sec. 604. Authorization.

" Sec. 605. Apportionment among States.

" Sec. 606. Eligibility for assistance.

" Sec. 607. Authorized activities.

" Sec. 608. Special programs and projects.

" Sec. 609. Metropolitan area projects.

" Sec. 610. Applications.

" Sec. 611. Educational television and radio.

" Sec. 612. Payments.

" Sec. 613. Evaluations.

" Sec. 614. Joint funding.

" Sec. 615. Attorney fees.

" Sec. 616. Neighborhood schools.

" Sec. 617. Definitions.".

TITLE VII-- AMENDMENT TO TITLE VII OF THE

ELEMENTARY AND

SECONDARY EDUCATION ACT OF 1965

Sec. 701. Amendment.

" TITLE VII-- BILINGUAL EDUCATION PROGRAMS

" Sec. 701. Short title.

" Sec. 702. Policy; appropriations.

" Sec. 703. Definitions; regulations.

" Part A--Financial Assistance for Bilingual

Education Programs

" Sec. 721. Bilingual education programs.

" Sec. 722. Indian children in schools.

" Sec. 723. Training.

" Part B--Administration

" Sec. 731. Office of Bilingual Education.

" Sec. 732. National Advisory Council on Bilingual Education.

" Part C--Supportive Services and Activities

" Sec. 741. Administration.

" Sec. 742. Bilingual education research and development.

" Part D--Continued Bilingual Education Assistance

" Sec. 751. Assistance to local educational agencies eligible under the Emergency School Aid Act.".

TITLE VIII-- ESTABLISHMENT OF A NEW TITLE VIII AND

A NEW

TITLE IX OF THE ELEMENTARY AND SECONDARY

EDUCATION ACT

OF 1965

Sec. 801. Community education program authorized.

" TITLE VIII-- COMMUNITY SCHOOLS

" Sec. 801. Short title.

" Sec. 802. Statement of findings and policy.

" Sec. 803. Definition of community education program.

" Sec. 804. State programs for community education.

" Sec. 805. Allotment.

" Sec. 806. Use of community education programs for non-Federal contribution in certain Federal programs.

" Sec. 807. Uses of funds.

" Sec. 808. State plan.

" Sec. 809. Grants to local educational agencies.

" Sec. 810. Grants to public agencies and nonprofit organizations for delivery of community services through community education.

" Sec. 811. National leadership and planning.

" Sec. 812. Training of community education personnel.

" Sec. 813. Research.

" Sec. 814. Administration.

" Sec. 815. Federal share.". Sec. 802. Additional programs authorized.

" TITLE IX-- ADDITIONAL PROGRAMS " Part A--Gifted and Talented Children

" Sec. 901. Short title; purpose.

" Sec. 902. Definition.

" Sec. 903. Authorization of appropriations; apportionment of appropriations.

" Sec. 904. State programs.

" Sec. 905. Discretionary programs.

" Sec. 906. State allotments.

" Sec. 907. Administration.

" Sec. 908. Federal share.

" Part B--Educational Proficiency Standards

" Sec. 921. Grants to implement educational proficiency standards.

" Sec. 922. Achievement testing assistance.

" Part C--Women's Educational Equity

" Sec. 931. Short title; purpose.

" Sec. 932. Grant and contract authority.

" Sec. 933. Application; participation.

" Sec. 934. Small grants.

" Sec. 935. Criteria and priorities.

" Sec. 936. National Advisory Council on Women's Educational Programs.

" Sec. 937. Report.

" Sec. 938. Authorization of appropriations.

" Part D--Special Grants for Safe Schools

" Sec. 941. Purpose.

" Sec. 942. Authorization of appropriations.

" Sec. 943. Allotments to local educational agencies.

" Sec. 944. Application.

" Part E--Ethnic Heritage Program

" Sec. 951. Statement of policy.

" Sec. 952. Ethnic heritage studies programs.

" Sec. 953. Authorized activities.

" Sec. 954. Applications.

" Sec. 955. Administrative provisions.

" Sec. 956. National Advisory Council.

" Sec. 957. Authorization of appropriations.".

TITLE IX-- AMENDMENTS RELATING TO GENERAL PROVISIONS

OF

THE ELEMENTARY AND SECONDARY EDUCATION ACT

OF 1965

Sec. 901. Revision of title VIII--GENERAL provisions.

TITLE X-- IMPACT AID AMENDMENTS Part A--Public Law 874

Sec. 1001. General extensions of Public Law 874. Sec. 1002. Revision of jurisdictional limits on locations of Federal property. Sec. 1003. Provisions regarding heavily impacted school districts. Sec. 1004. Absorption. Sec. 1005. Early payments on the basis of estimates. Sec. 1006. State equalization. Sec. 1007. Adjustments necessitated by appropriations. Sec. 1008. Hearings. Sec. 1009. Children for whom local agencies are unable to provide education. Sec. 1010. Prompt consideration for applications. Sec. 1011. Property owned by foreign governments and international organizations. Sec. 1012. Definition of local educational agency. Sec. 1013. Handicapped children. Sec. 1014. Use of average daily membership. Sec. 1015. Impact aid study.

Part B--Public Law 815

Sec. 1021. General extensions of Public Law 815. Sec. 1022. Determination of number of children. Sec. 1023. Construction arrangements. Sec. 1024. Disaster assistance.

Part C--General Provisions

Sec. 1031. Northern Mariana Islands. Sec. 1032. Effective Date.

TITLE XI-- INDIAN EDUCATION Part A--Assistance to Local Educational Agencies

Sec. 1101. Amendment to Public Law 874. Sec. 1102. Funding provision. Sec. 1103. Basic educational support.

Part B--Bureau of Indian Affairs Programs

Sec. 1121. Standards for the basic education of Indian children in Bureau of

Indian Affairs schools. Sec. 1122. National criteria for dormitory situations. Sec. 1123. Regulations. Sec. 1124. Studies. Sec. 1125. Facilities construction. Sec. 1126. Bureau of Indian Affairs education functions. Sec. 1127. Implementation. Sec. 1128. Allotment formula. Sec. 1129. Uniform direct funding and support. Sec. 1130. Policy for Indian control of Indian education. Sec. 1131. Education personnel. Sec. 1132. Management information system. Sec. 1133. Bureau education policies. Sec. 1134. Uniform education procedures and practices. Sec. 1135. Recruitment of Indian educators. Sec. 1136. Annual report. Sec. 1137. Rights of Indian students. Sec. 1138. Regulations. Sec. 1139. Definitions.

Part C--Indian Education Provisions

Sec. 1141. Extension of authorization. Sec. 1142. Culturally related academic needs. Sec. 1143. Demonstration projects. Sec. 1144. Parent committees. Sec. 1145. Allocation adjustment. Sec. 1146. Tribal schools. Sec. 1147. Definition study. Sec. 1148. Data collection. Sec. 1149. Program monitoring. Sec. 1150. Amendments to title X of the Elementary and Secondary Education

Act of 1965. Sec. 1151. Definition of Indian. Sec. 1152. Teacher training and fellowships.

TITLE XII-- ADMINISTRATIVE PROVISIONS Part A--Equalization

Sec. 1201. Data collection. Sec. 1202. Equalization assistance. Sec. 1203. School finance.

Part B--Paperwork Control

Sec. 1211. Short title. Sec. 1212. General Education Provisions Act amendment. Sec. 1213. Applications.

Part C--Federal, State and Local Responsibilities

Sec. 1231. State and local administration. Sec. 1232. Enforcement.

Part D--General Administrative Provisions

Sec. 1241. Office of Non-Public Education. Sec. 1242. National assessment of educational progress. Sec. 1243. National Center for Education Statistics. Sec. 1244. General authority of administrative heads of education agencies. Sec. 1245. Availability of appropriations. Sec. 1246. Evaluation. Sec. 1247. Review of applications. Sec. 1248. Technical assistance; dissemination. Sec. 1249. Maintenance of effort. Sec. 1250. Protection of pupil rights.

Part E--Effective Date

Sec. 1261. Effective Dates.

TITLE XIII-- REVISION OF OTHER EDUCATION PROGRAMS Part A--Adult Education

Sec. 1301. Statement of purpose. Sec. 1302. Definition of adult education. Sec. 1303. Grants to States. Sec. 1304. Northern Mariana Islands. Sec. 1305. State plans. Sec. 1306. Payments. Sec. 1307. Research, evaluation, and clearinghouse. Sec. 1308. Special projects for the elderly. Sec. 1309. National Advisory Council. Sec. 1310. Authorization of appropriations. Sec. 1311. Educational opportunities for adult Indians. Sec. 1312. Indochina refugees. Sec. 1313. Adult education program for immigrants.

Part B--Higher Education

Sec. 1321. Teacher training programs. Sec. 1322. Amendment for advances for reserved funds of State loan insurance

programs. Sec. 1323. Direct loans to students; conforming amendment.

Part C--Indochinese Refugee Children

Sec. 1331. Extension of program.

Part D--Education of the Handicapped

Sec. 1341. Technical amendment.

Part E--Guidance and Counseling

Sec. 1351. Extension of program.

TITLE XIV-- OVERSEAS DEFENSE DEPENDENTS' EDUCATION

Sec. 1401. Short title. Sec. 1402. Establishment of defense dependents' education system. Sec. 1403. Office of Dependents' Education. Sec. 1404. Tuition-paying students. Sec. 1405. Annual educational assessment. Sec. 1406. School construction by the Director of Dependents' Education. Sec. 1407. School system for dependents in overseas areas. Sec. 1408. Eligibility for school lunch and breakfast programs. Sec. 1409. Allotment formula. Sec. 1410. School advisory committees. Sec. 1411. Advisory Council on Dependents' Education. Sec. 1412. Study of defense dependents' education system. Sec. 1413. Regulations. Sec. 1414. Definitions. Sec. 1415. Effective dates.

TITLE XV-- MISCELLANEOUS PROVISIONS Part A--International Year of the Child

Sec. 1501. Declaration of purpose of the International Year of the Child. Sec. 1502. Establishment of a National Commission. Sec. 1503. Functions of the Commission. Sec. 1504. Coordination and administration. Sec. 1505. Waivers of certain other provisions of law. Sec. 1506. Termination date. Sec. 1507. Authorization of appropriations.

Part B--National Academy of Peace and Conflict

Resolution

Sec. 1511. Establishment. Sec. 1512. Duties of Commission. Sec. 1513. Membership. Sec. 1514. Director and staff of Commission; experts and consultants. Sec. 1515. Powers of Commission. Sec. 1516. Reports. Sec. 1517. Termination. Sec. 1518. Authorization of appropriations. Sec. 1519. Definitions.

Part C--Miscellaneous Amendments; Effective Dates

Sec. 1521. Preparation of census data. Sec. 1522. Authorization of appropriations for racially isolated school districts. Sec. 1523. Availability of education reports. Sec. 1524. General assistance for the Virgin Islands. Sec. 1525. Territorial teacher training assistance. Sec. 1526. Study of evaluation practices and procedures. Sec. 1527. Television program assistance. Sec. 1528. Limitation on contracting authority. Sec. 1529. Repeal. Sec. 1530. General effective date.

TITLE I--AMENDMENT TO TITLE I OF THE ELEMENTARY AND SECONDARY EDUCATION ACT OF 1965 SPECIAL EDUCATIONAL PROGRAMS AND PROJECTS FOR EDUCATIONALLY DEPRIVED CHILDREN

Sec. 101. (a) Title I of the Act entitled " An Act to strengthen and improve educational quality and educational opportunities in the Nation's elementary and secondary schools", approved April 11, 1965, as amended (Public Law 89-10, also known as the Elementary and Secondary Education Act of 1965), // 20 USC 821 // is amended to read as follows:

" TITLE I--FINANCIAL ASSISTANCE TO MEET SPECIAL EDUCATIONAL NEEDS OF CHILDREN " DECLARATION OF POLICY

" Sec. 101. // 20 USC 2701 // In recognition of the special educational needs of children of low-income families and the impact that concentrations of low-income families have on the ability of local educational agencies to support adequate educational programs, the Congress hereby declares it to be the policy of the United States to provide financial assistance (as set forth in the following parts of this title) to local educational agencies serving areas with concentrations of children from low-income families to expand and improve their educational programs by various means (including preschool programs) which contribute particularly to meeting the special educational needs of educationally deprived children. Further, in recognition of the special educational needs of children of certain migrant parents, of Indian children and of handicapped, neglected, and delinquent children, the Congress hereby declares it to be the policy of the United States to provide financial assistance (as set forth in the following parts of this title) to help meet the special educational needs of such children.

" DURATION OF ASSISTANCE

" Sec. 102. // 20 USC 2702. // During the period beginning October 1, 1978, and ending September 30, 1983, the Commissioner shall, in accordance with the provisions of this title, make payments to State educational agencies for grants made on the basis of entitlements created under this title.

" Part A--Programs Operated by Local Educational

Agencies

" Subpart 1--Basic Grants " GRANTS-- AMOUNT AND ELIGIBILITY

" Sec. 111. // 20 USC 2711. // (a) Amount of Grants.--(1) There is authorized to be appropriated for each fiscal year for the purpose of this paragraph 1 per centum of the amount appropriated for such year for payments to States under part E (other than payments under such part to jurisdictions excluded from the term ' State' by this subsection, and payments pursuant to section 156), and there is authorized to be appropriated such additional sums as will assure at least the same level of funding under this title as in fiscal year 1976 for Guam, American Samoa, the Virgin Islands, the Northern Mariana Islands, the Trust Territory of the Pacific Islands, and to the Secretary of the Interior for payments pursuant to paragraphs (1) and (2) of subsection (d). The amount appropriated pursuant to this paragraph shall be allotted by the Commissioner (A) among Guam, American Samoa, the Virgin Islands, the Northern Mariana Islands, and the Trust Territory of the Pacific Islands according to their respective need for grants under this part, and (B) to the Secretary of the Interior in the amount necessary (i) to make payments pursuant to paragraph (1) of subsection (d), and (ii) to make payments pursuant to paragraph (2) of subsection (d). The grant which a local educational agency in Guam, American Samoa, the Virgin Islands, the Northern Mariana Islands, and the Trust Territory of the Pacific Islands is eligible to receive shall be determined pursuant to such criteria as the Commissioner determines will best carry out the purpose of this title.

"(2) (A) In any case in which the Commissioner determines that satisfactory data for that purpose are available, the grant which a local educational agency in a State is eligible to receive under this subpart for a fiscal year shall (except as provided in paragraph (3) be determined by multiplying the number of children counted under subsection (c) by 40 per centum of the amount determined under the next sentence. The amount determined under this sentence shall be the average per pupil expenditure in the State except that (i) if the average per pupil expenditure in the State is less than 80 per centum of the average per pupil expenditure in the United States, such amount shall be 80 per centum of the average per pupil expenditure in the United States, or (ii) if the average per pupil expenditure in the State is more than 120 per centum of the average per pupil expenditure in the United States, such amount shall be 120 per centum of the average per pupil expenditure in the United States.

"(B) In any case in which such data are not available, subject to paragraph (3), the grant for any local educational agency in a State shall be determined on the basis of the aggregate amount of such grants for all such agencies in the county or counties in which the school district of the particular agency is located, which aggregate amount shall be equal to the aggregate amount determined under subparagraph (A) for such county or counties, and shall be allocated among those agencies upon such equitable basis as may be determined by the State educational agency in accordance with the basic criteria prescribed by the Commissioner.

"(C) For each fiscal year, the Commissioner shall determine the percentage which the average per pupil expenditure in Puerto Rico is of the lowest average per pupil expenditure of any of the fifty States. The grant which Puerto Rico shall be eligible to receive under this subpart for a fiscal year (exclusive of any amount received under paragraph (3)(D) shall be the amount arrived at by multiplying the number of children counted under subsection (c) for Puerto Rico by the product of--,

"(i) the percentage determined under the preceding sentence, and

"(ii) 32 per centum of the average per pupil expenditure in the United States.

"(3) (A) Upon determination by the State educational agency that a local educational agency in the State is unable or unwilling to provide for the special educational needs of children described in clause (C) of paragraph (1) of subsection (c), who are living in institutions for neglected or delinquent children, the State educational agency shall, if it assumes responsibility for the special educational needs of such children, be eligible to receive the portion of the allocation to such local educational agency which is attributable to such neglected or delinquent children, but if the State educational agency does not assume such responsibility, any other State or local public agency, as determined by regulations established by the Commissioner, which does assume such responsibility shall be eligible to receive such portion of the allocation.

"(B) In the case of local educational agencies which serve in whole or in part the same geographical area, and in the case of a local educational agency which provides free public education for a substantial number of children who reside in the school district of another local educational agency, the State educational agency may allocate the amount of the grants for those agencies among them in such manner as it determines will best carry out the purposes of this title.

"(C) In any State in which a large number of local educational agencies overlap county boundaries, the State educational agency may apply to the Commissioner for authority during any particular fiscal year to make the allocations under this part (other than section 117) directly to local educational agencies without regard to the counties. If the Commissioner approves an application of a State educational agency for a particular year under this subparagraph, the State educational agency shall provide assurances that such allocations will be made using precisely the same factors for determining a grant as are used under this part and that a procedure will be established through which local educational agencies dissatisfied with the determinations made by the State educational agency may appeal directly to the Commissioner for a final determination.

"(D) (i) From one-half of any amount made available for this subpart for any fiscal year in excess of the amount made available for this subpart for fiscal year 1979, there shall be alloted to each State an amount which bears the same ratio to such excess as the product of--,

"(I) the number of children in such State aged five to seventeen, inclusive, from families below 50 per centum of the median national income for four-person families from the 1975 survey of income and education conducted by the Bureau of the Census,

multiplied by--,

"(II) 40 per centum of the amount determined under the second sentence of paragraph (2)(A) and, in the case of Puerto Rico, the product determined under subparagraph (C)(i) and (ii) of this paragraph.

bears to the sum of such products for all the States.

"(ii) In any case in which the Commissioner finds that a State's percentage decrease in children from low-income families exceeds 25 per centum between the 1970 decennial census, as adjusted, and the 1975 survey of income and education, the Commissioner shall allocate funds based on the most current valid data available or based on a resurvey of the affected State by the Bureau of the Census.

"(iii) From the amount allotted to each State under division (i), the amount which each local educational agency in that State shall be eligible to receive under this subparagraph shall be an amount which bears the same ratio to the total amount allotted to such State under this subparagraph as the amount such local educational agency receives under paragraph (2) bears to the total amount of funds made available to local educational agencies in such State under such paragraph.

"(E) From the remaining one-half of any amount made available for this subpart for any fiscal year in excess of the amount made available for this subpart for fiscal year 1979 after the application of subparagraph (D), there shall be allotted to each State an amount determined in accordance with paragraph (2) of this subsection.

"(4) For purposes of this subsection, the term ' State' does not include Guam, Americn Samoa, the Virgin Islands, the Northern Mariana Islands, and the Trust Territory of the Pacific Islands.

"(b) Minimum Number of Children To Qualify.--A local educational agency shall be eligible for a basic grant for a fiscal year under this subpart only if it meets the following requirements with respect to the number of children counted under subsection (c):

"(1) In any case (except as provided in paragraph (3) in which the Commissioner determines that satisfactory data for the purpose of this subsection as to the number of such children are available on a school district basis, the number of such children in the school district of such local educational agency shall be at least ten.

"(2) In any other case, except as provided in paragraph (3), the number of such children in the county which includes such local educational agency's school district shall be at least ten.

"(3) In any case in which a county includes a part of the school district of the local educational agency concerned and the Commissioner has not determined that satisfactory data for the purpose of this subsection are available on a school district basis for all the local educational agencies or all the counties into which the school district of the local educational agency concerned extends, the eligibility requirement with respect to the number of such children for such local educational agency shall be determined in accordance with regulations prescribed by the Commissioner for the purposes of this subsection.

"(c) Children To Be Counted.--(1)(A) The number of children to be counted for purposes of this section, other than for subsection (a)(3)( D), is the aggregate of--,

"(i) the number of children aged five to seventeen, inclusive, in the school district of the local educational agency from families below the poverty level as determined under paragraph (2)(A),

"(ii) the number of children aged five to seventeen, inclusive, in the school district of such agency from families above the poverty level as determined under paragraph (2)(B), subject to subparagraph (B) of this paragraph, and

"(iii) the number of children aged five to seventeen, inclusive, in the school district of such agency living in institutions for neglected or delinquent children (other than such institutions operated by the United States) but not counted pursuant to subpart 3 of part B for the purposes of a grant to a State agency, or being supported in foster homes with public funds.

"(B) For the purpose of division (ii) of subparagraph (A) of this paragraph the number of children aged five through seventeen, inclusive, in the school district of such agency from families above the poverty level as determined under paragraph (2)(B) shall be reduced by one-third for fiscal year 1979; except that such reduction shall not be applicable with respect to determinations made under section 117(b) of the number of children to be counted under this subsection.

"(2)(A) For the purposes of this section, the Commissioner shall determine the number of children aged five to seventeen, inclusive, from families below the poverty level on the basis of the most recent satisfactory data available from the Department of Commerce for local educational agencies (or, if such data are not available for such agencies, for counties); and in determining the families which are below the poverty level, the Commissioner shall utilize the criteria of poverty used by the Bureau of the Census in compiling the 1970 decennial census.

"(B) For purposes of this section, the Secretary shall determine the number of children aged five to seventeen, inclusive, from families above the poverty level on the basis of the number of such children from families receiving an annual income, in excess of the current criteria of poverty, from payments under the program of aid to families with dependent children under a State plan approved under title IV of the Social Security Act; // 42 USC 601. // and in making such determinations the Secretary shall utilize the criteria of poverty used by the Bureau of the Census in compiling the 1970 decennial census for a nonfarm family of four in such form as those criteria have been updated by increases in the Consumer Price Index. The Secretary shall determine the number of such children and the number of children of such ages living in institutions for neglected or delinquent children, or being supported in foster homes with public funds, on the basis of the caseload data for the month of October of the preceding fiscal year (using, in the case of children described in the preceding sentence, the criteria of poverty and the form of such criteria required by such sentence which were determined for the calendar year preceding such month of October) or, to the extent that such data are not available to him before January of the calendar year in which the Secretary's determination is made, then on the basis of the most recent reliable data available to him at the time of such determination.

"(C) When requested by the Commissioner, the Secretary of Commerce shall make a special estimate of the number of children of such ages who are from families below the poverty level (as determined under subparagraph (A) of this paragraph) in each county or school district, and the Commissioner is authorized to pay (either in advance or by way of reimbursement) the Secretary of Commerce the cost of making this special estimate. The Secretary of Commerce shall give consideration to any request of the chief executive of a State for the collection of additional census information. For purposes of this section, the Secretary shall consider all children who are in correctional institutions to be living in institutions for delinquent children.

"(d) Program for Indian Children.--(1) From the amount allotted for payments to the Secretary of Interior under clause (B)(i) in the second sentence of subsection (a)(1), the Secretary of the Interior shall make payments to local educational agencies, upon such terms as the Commissioner determines will best carry out the purposes of this title with respect to out-of-State Indian children in the elementary and secondary schools of such agencies under special contracts with the Department of the Interior. The amount of such payment may not exceed, for each such child, 40 per centum of (A) the average per pupil expenditure in the State in which the agency is located or (B) 120 per centum of such expenditure in the United States, whichever is the greater.

"(2) The amount allotted for payments to the Secretary of the Interior under clause (B)(ii) in the second sentence of subsection (a)( 1) for any fiscal year shall be, as determined pursuant to criteria established by the Commissioner the amount necessary to meet the special educational needs of educationally deprived Indian children on reservations serviced by elementary and secondary schools operated for Indian children by the Department of the Interior. Such payment shall be made pursuant to an agreement between the Commissioner and the Secretary containing such assurances and terms as the Commissioner determines will best achieve the purposes of this title. Such agreement shall contain (A) an assurance that payments made pursuant to this subparagraph will be used solely for programs and projects approved by the Secretary of the Interior which meet the applicable requirements of subpart 3 of this part and that the Department of the Interior will comply in all other respects with the requirements of this title, and (B) provision for carrying out the applicable provisions of subpart 3 of this part and sections 171 and 172.

" TREATMENT OF EARNINGS FOR PURPOSES OF AID TO

FAMILIES WITH

DEPENDENT CHILDREN

" Sec. 112. // 20 USC 2712. // Notwithstanding the provisions of title IV of the Social Security Act, // 42 USC 601. // a State plan approved under section 402 of such Act // 42 USC 602. // shall provide that for a period of not less than twelve months, and may provide that for a period of not more than twenty-four months, the first $85 earned by any person in any month for services rendered to any program assisted under this title of this Act shall not be regarded (1) in determining the need of such person under such approved State plan or (2) in determining the need for any other individual under such approved State plan.

" Subpart 2--Special Grants " SPECIAL INCENTIVE GRANTS

" Sec. 116. // 20 USC 2721. // (a) Eligibility.--(1) Each local educational agency that is eligible to receive a payment under section 111 for any fiscal year shall be entitled to an additional grant under this section for that fiscal yer if it is located in a State which has in effect for that fiscal year a State program meeting the requirements of paragraph (2) under which financial assistance is provided to meet the special education needs of educationally deprived children.

"(2) A State program meets the requirements of this subsection if, under State law--

"(A) the program meets the requirements of section 131(c); and

"(B) not less than 50 per centum of the funds expanded under the program in any school district of any local educational agency in the State in the fiscal year preceding any fiscal year in which the State receives a payment under this subpart is expended in school attendance areas of such agencies having high concentrations of children from low-income families.

"(b) Amount of Grants.--(1) Except as provided in paragraph (3), the aggregate amount to which the local educational agencies in a State are entitled under this section for any fiscal year shall be 50 per centum of the amount of State funds expended, in the most recent fiscal year for which data are available, under a State program meeting the requirements of paragraph (2) of subsection (a) of this section.

"(2) The amount of the additional grant for each local educational agency in a State under this section for all fiscal year shall bear the same ratio to the amount allocated to such State under subsection (o) of this section as the amount allocated to such local educational agency under section 111 of this title for such fiscal year bears to the aggregate amount allocated to all local educational agencies in the State under section 111 for such fiscal year.

"(3) The aggregate amount which the local educational agencies in a State shall be eligible to receive under this section for any fiscal year shall not exceed 10 per centum of the aggregate amount which all local educational agencies in such State are eligible to receive under section 111 of this title for such fiscal year.

"(4) Each State which desires to receive payments under this section shall develop a system for determining the data required by subparagraph (2)(B) of subsection (a) of this section relating to the percentage of State funds expended in school attendance areas having high concentrations of children from low-income families and required by paragraph (1) of this subsection relating to the amount of State funds expended under the State program referred to in that paragraph. The State shall submit to the Commissioner such information as the Commissioner may request concerning that system.

"(c) Payments; Use of Funds.--(1) Except as provided in paragraph (3), the Commissioner shall pay to each State for each fiscal year the aggregate amount to which the local educational agencies in such State are entitled under subsection (b) after any ratable reductions under subsection (d).

"(2) The total amount to which the local educational agencies in a State are entitled under this section for any fiscal year shall be added to the amount paid to such State under section 191 for such year. From the amount paid to it under this subsection, the State shall distribute to each local educational agency of the State the amount of its additional grant as determined under subsection (b)(2).

"(3) Whenever the expenditures made by a State in accordance with subsection (a) in a fiscal year equal or exceed expenditures in the preceding fiscal year, the amount paid to such State under this section shall, subject to subsection (d), not be less than the amount paid to such State under this section in the preceding fiscal year, and the total of any increases required under this paragraph shall be derived by proportionately reducing the amount paid to States which were not entitled to a payment under this section in the preceding fiscal year, except that the amount paid to a State under this section for any fiscal year shall not exceed the maximum amount to which such State is entitled for such fiscal year under paragraph (1) of subsection (b).

"(4) The amount paid to a local educational agency under this part shall be used by such agency for activities undertaken pursuant to its application submitted under section 121 and shall be subject to all other requirements in subpart 3 of this part.

"(d) Ratable Reductions.--If the sums appropriated pursuant to subsection (e) for a fiscal year are not sufficient to pay in full the total amounts which all local educational agencies are entitled to receive under this section, the amount to be paid such agencies shall be ratably reduced to the extent necessary to bring such payments within the limits of the amounts so appropriated. In case additional funds become available for making payments under this section for that year, such reduced amounts shall be increased on the same basis that they were reduced.

"(e) Appropriations.--There are authorized to be appropriated for the purposes of this section such sums as may be necessary for fiscal year 1980 and for the three succeeding fiscal years.

" GRANTS FOR LOCAL EDUCATIONAL AGENCIES IN COUNTIES

WITH ESPECIALLY

HIGH CONCENTRATIONS OF CHILDREN FROM LOW- INCOME

FAMILIES

" Sec. 117. // 20 USC 2722. // (a) Purpose.--It is the purpose of this section to provide additional assistance to local educational agencies in counties with especially high concentrations of children from low-income families to enable local educational agencies in such counties to provide more effective programs of instruction, especially in the basic skills of reading, writing, and mathematics, to meet the special educational needs of educationally deprived children.

"(b) Eligibility for and Amount of Special Grants.--(1) Each county, in a State other than Guam, American Samoa, the Virgin Islands, the Northern Mariana Islands, and the Trust Territory of the Pacific Islands, which is eligible for a grant under this title for any fiscal year shall be entitled to an additional grant under this section for that fiscal year if--,

"(A) the number of children counted under section 111(c) of this title for local educational agencies in such county for the preceding fiscal year exceeds five thousand, or

"(B) the number of children counted under section 111(c) exceeds 20 per centum of the total number of children aged five to seventeen, inclusive, in the school districts of local educational agencies in such county in that fiscal year,

except that no such State shall receive less than one-quarter of 1 per centum of the sums appropriated under subsection (d) for such section for such fiscal year.

"(2) For each county in which there are local educational agencies eligible to receive an additional grant under this section for any fiscal year the Commissioner shall determine the product of--,

"(A) the number of children in excess of five thousand counted under section 111(c) for the preceding fiscal year or the number of children counted under that section in excess of 20 per centum of the total number of children aged five to seventeen, inclusive, in the school districts of local educational agencies in such county for that preceding fiscal year, whichever is greater, and

"(B) the quotient resulting from the division of the amount determined for those agencies under section 111(a)(2) of this title for the fiscal year for which the determination is being made divided by the total number of children counted under section 111(c) for that agency for the preceding fiscal year.

"(3) The amount of the additional grant to which an eligible county is entitled under this section for any fiscal year shall be an amount which bears the same ratio to the amount appropriated under subsection (d) for that fiscal year as the product determined under paragraph (2) for such county for that fiscal year bears to the sum of such products for all counties in the United States for that fiscal year.

"(4) For the purposes of this section, the Commissioner shall determine the number of children counted under section 111(c) for any county, and the total number of children aged five to seventeen, inclusive, in school districts of local educational agencies in such county, on the basis of the most recent satisfactory data available at the time the entitlement for such county is determined under section 111.

"(5) Funds allocated to counties under this part shall be allocated by the State educational agency, pursuant to regulations established by the Commissioner, among the several local educational agencies whose school districts lie (in whole or in part) within the county on the basis of the current distribution in the county of children aged five to seventeen, inclusive, from low-income families (using a poverty level selected by the State educational agency consistent with the purposes of this title) as determined on the basis of the available data which such State educational agency determines best to reflect the current distribution in the county of children aged five to seventeen, inclusive, from low-income families, except that in determining the number of such children in any local educational agency in which less than 20 per centum of the children are from low-income families, each such child shall be counted as a fraction in which the numerator is the percentage of low-income children in the school district of that agency and the denominator is 20.

"(c) Payments; Use of Funds.--(1) The total amount to which the counties in a State are entitled under this section for any fiscal year shall be added to the amount paid to that State under section 191 for such year. From the amount paid to it under this section, the State shall distribute to local educational agencies in each county of the State the amount (if any) to which it is entitled under this section.

"(2) The amount paid to a local educational agency under this section shall be used by that agency for activities undertaken pursuant to its application submitted under section 121 and shall be subject to the other requirements in subpart 3 of this part.

"(d) Appropriations.--There are authorized to be appropriated for the purposes of this section $400,000,000 for fiscal year 1979, and such sums as may be necessary for each of the four succeeding fiscal years.

" Subpart 3--Program Requirements and Applications " LOCAL PROGRAM APPLICATION

" Sec. 121. // 20 USC 2731. // A local educational agency may receive a grant under this title for any fiscal year if it has on file with the State educational agency a current application, approved by the State educational agency, describing the programs and projects to be conducted with assistance provided under this title for a period of not to exceed three fiscal years, including the fiscal year for which the grant is to be made. Such an application may be amended at any time to describe changes in or additions to the activities originally set forth in the application. An application or amendment thereto shall be approved by the State educational agency upon its determination that the application provides for the use of such funds in a manner which meets the requirements of this subpart and is consistent with the assurance contained in the general application required by section 436 of the General Education Provisions Act, // 20 USC 1232e. // subject to such basic criteria as the Commissioner may prescribe.

" DESIGNATING SCHOOL ATTENDANCE AREAS

" Sec. 122. // 20 USC 2732. // (a) General Provisions.--(1) Except as provided in paragraph (2) and subsections (b), (c), (d), and (e) of this section, a local educational agency shall use funds received under this title in school attendance areas having high concentrations of children from low-income families (hereinafter referred to as 'eligible school attendance areas'), and where funds under this title are insufficient to provide programs and projects for all educationally deprived children in eligible school attendance areas, a local educational agency shall annually rank its eligible school attendance areas from highest to lowest, according to relative degree of concentration of children from low-income families. A local educational agency may carry on a program or project assisted under this title in an eligible school attendance area only if it also carries on such program or project in all other eligible school attendance areas which are ranked higher under the first sentence. A local educational agency may designate any school attendance area in which at least 25 per centum of the children are from low-income families as an eligible school attedance area if the aggregate amount expended under this title and under a State program meeting the requirements of section 131(c) in that fiscal year in each school attendance area of that agency in which projects assisted under this title were carried out in the preceding fiscal year equals or exceeds the amount expended from those sources in that area in such preceding fiscal year. The same measure of low income, which shall be chosen by the local educational agency and which may be a composite of several indicators, shall be used with respect to all such areas, both to identify the areas having high concentrations of children from low-income families and to determine the ranking of each area.

"(2)(A) Notwithstanding the provisions of paragraph (1), in the selection of eligible school attendance areas, a local educational agency may, subject to the requirements of subparagraph (B), choose to rank all its school attendance areas as provided in paragraph (1) and also rank all its school attendance areas according to educational deprivation, and then serve all its school attendance areas ranked according to paragraph (1) in the order of their ranking under such paragraph unless another school attendance area ranked according to education deprivation has a substantially greater number or a substantially greater percentage of educationally deprived children, in which case such school attendance area may be served before service is provided to other school attendance areas ranked pursuant to paragraph (1) which have a substantially smaller number or substantially smaller percentage of educationally deprived children. In the event that a local educational agency chooses to exercise the option provided under this paragraph, it shall not serve any more school attendance areas than the number identified pursuant to paragraph (1).

"(B) Any local educational agency desiring to use the alternative ranking system described in subparagraph (A) shall, with the consent of the district-wide parent advisory council of that agency, apply for permission to use such system to the State educational agency of the State wherein such local educational agency is located. Such application shall be approved by such State educational agency only if such State educational agency finds that the use of such alternative ranking system will not substantially impair the delivery of compensatory education services to educationally deprived children from low-income families in project areas served by such local educational agency. Whenever a school district exercises the option under this paragraph and actually serves one or more school attendance areas ranked under this paragraph, none of the areas so ranked but not served shall be considered to be eligible school attendance areas under this title.

"(b) Use of Enrollment Data in Certain Schools.--A local educational agency may use funds received under this title for educationally deprived children who are in a school of such agency which is not located in an eligible school attendance area, but at which the proportion of children in actual average daily attendance who are from low-income families is substantially the same as the proportion of such children in such an area of that agency (hereinafter referred to as an 'eligible school').

"(c) Continuation of Eligibility for Certain School Attendance Areas or Schools.--An eligible school attendance area or an eligible school may be designated a project area under subsection (a) or a project school under subsection (b) for a fiscal year, even though it does not qualify under such subsections for that fiscal year, if such area or school was so designated in either of the two preceding fiscal years.

"(d) Lower Ranked School Attendance Areas or Schools Having Substantially Greater Incidences of Educationally Deprived Children Than Higher Ranked Areas or Schools.--The Commissioner shall issue regulations providing for an exception to subsection (a) permitting children in lower ranked eligible school attendance areas or eligible schools having substantially greater incidences of educational deprivation than areas or schools ranked higher under subsections (a) or (b) to receive assistance before such children in higher ranked areas or schools receive such assistance.

"(e) Skipping Higher Ranked School Attendance Areas or Schools Receiving Services of the Same Nature and Scope From Non-Federal Sources.--The Commissioner shall issue regulations providing for an exception to subsection (a) or (b) permitting local educational agencies to skip higher ranked eligible school attendance areas or eligible schools receiving, from non-Federal funds, services of the same nature and scope as would otherwise be provided under this title. Whenever children residing in eligible areas and attending private elementary and secondary schools are ineligible for services of the same nature and scope fromm non-Federal sources, such children shall be selected for programs and projects under this title without regard to the provisions of this subsection. The number of children receiving services under this title who attend private elementary and secondary schools shall be determined in each local educational agency receiving assistance under this title without regard to non-Federal compensatory education funds which serve children in public elementary and secondary schools who are also eligible for assistance under this title. Children attending private elementary and secondary schools who receive assistance under this title shall be identified in accordance with this section and without regard to skipping higher ranked school attendance areas or schools receiving services of the same nature and scope from non-Federal sources.

" CHILDREN TO BE SERVED

" Sec. 123. // 20 USC 2733. // (a) General Provisions.--Except as provided in subsections (b), (c), and (d) of this section and section 133, a local educational agency must use funds received under this title for educationally deprived children, identified in accordance with section 124(b) as having the greatest need for special assistance, in school attendance areas or schools satisfying the requirements of section 122.

"(b) Continuation of Eligibility for Educationally Deprived Children Who Are No Longer in Greatest Need of Assistance.--, Whenever for a fiscal year, an educationally deprived child in a school attendance area or school satisfying the requirements of section 122, does not meet the requirement of subsection (a) requiring that he be in greatest need of special assistance, but did not meet such requirement in any previous year, and is still educationally deprived, that child may participate in a program or project assisted under this title for the current fiscal year.

"(c) Continuation of Eligibility for Educationally Deprived Children Transferred to Ineligible Areas or Schools in the Same Year.-- Educationally deprived children who begin participation in a program or project assisted under this title, in accordance with subsections (a) and (b) but who, in the same school year, are transferred to a school attendance area or school not receiving funds under this title, may, if the local agency so determines, continue to participate in a program or project funded under this title for the duration of that same school year.

"(d) Skipping Children Determined To Be in Greatest Need of Assistance Who Are Receiving Services of the Same Nature and Scope From Non-Federal Sources.--The Commissioner shall issue regulations providing for an exemption to subsection (a) permitting local educational agencies, in providing services under this title, to skip educationally deprived children in greatest need of assistance who are receiving, from non-Federal sources, services of the same nature and scope as would otherwise be provided under this title.

" REQUIREMENTS FOR DESIGN AND IMPLEMENTATION OF

PROGRAMS

" Sec. 124. // 20 USC 2734. // (a) Purpose of Program.--A local educational agency may use funds received under this title only for programs and projects which are designed to meet the special educational needs of the children referred to in section 123. Such programs and projects may include the acquisition of equipment, payments to teachers of amounts in excess of regular salary schedules as a bonus for service in schools serving project areas, the training of teachers, and, where necessary, the construction of school facilities, and planning for such programs and projects.

"(b) Assessment of Educational Need.--A local educational agency may receive funds under this title only if it makes an assessment of educational needs each year to (1) identify educationally deprived children in all eligible attendance areas and to select those educationally deprived children who have the greatest need for special assistance; (2) identify the general instructional areas on which the program will focus; and (3) determine the special educational needs of participating children with specificity sufficient to facilitate development of high-quality programs and projects.

"(c) Planning.--A local educational agency may use funds received under this title for planning only if (1) the planning relates directly to programs or projects to be assisted under this title and has resulted, or is reasonably likely to result, in a program or project to be assisted under this title, and (2) such funds are needed because of the innovative nature of the program or project or because such agency lacks the resources necessary to plan adequately for programs and projects to be assisted under this title. The amount a local educational agency may use for plans for any fiscal year may not exceed 1 per centum of the amount determined for that agency for that year pursuant to section 111 or $2,000, whichever is greater.

"(d) Sufficient Size, Scope, and Quality.--A local educational agency may use funds received under this title only for programs and projects which are of sufficient size, scope, and quality to give reasonable promise of substantial progress toward meeting the special educational needs of the children being served, and to this end such programs and projects must involve an expenditure of not less than $2,500, except that a State educational agency may reduce such $2,500 requirement for a local educational agency if it determines that it would be impossible, for reasons such as distance or difficulty of travel, for such local educational agency to join effectively with other local educational agencies for the purpose of meeting the requirement.

"(e) Expenditures Related to Ranking of Project Areas and Schools.-- A local educational agency may receive funds under this title only if such funds are allocated among project areas or schools for programs and projects assisted under this title on the basis of the number and needs of children to be served as determined in accordance with section 123.

"(f) Coordination With Other Programs.--(1) A local educational agency may receive funds under this title only if it demonstrates that, in the development of its application, it has taken into consideration benefits and services which are or may be available through other public and private agencies, organizations, or individuals. The local educational agency shall also demonstrate that in order to avoid duplication of effort and to ensure that all programs and projects complement each other, it has considered suggestions and offers of assistance made by other agencies which may aid in carrying out or making more effective the program or project for which the application is made.

"(2) A local educational agency may use funds received under this title for health, social, or nutrition services for participating children under this title only if such agency has requested from the State educational agency assistance in locating and utilizing other Federal and State programs to provide such services.

"(g) Evaluations.--A local educational agency may receive funds under this title only if--,

"(1) effective procedures are adopted for evaluating, in accordance with the evaluation schedule promulgated by the Commissioner under section 183(g), the effectiveness of the programs assisted under this title in meeting the special educational needs of educationally deprived children;

"(2) such evaluations will include, during each three-year period, the collection and analysis of data relating to the degree to which programs assisted under this title have achieved their goals, including the requirements of section 130, and will also include objective measurements of educational achievement in basic skills over at least a twelve-month period in order to determine whether regular school year programs have sustained effects over the summer; and

"(3) the evaluation will address the purposes of the programs, including the requirements of section 130, and the results of the evaluations will be utilized in planning for and improving projects and activities carried out under this title in subsequent years.

"(h) Information Dissemination.--A local educational agency may receive funds under this title only if effective procedures are in existence for acquiring and disseminating to teachers and administrators significant information derived from educational research, demonstration, and similar projects, and for adopting, where appropriate, promising educational practices developed through such projects.

"(i) Teacher and School Board Participation.--A local educational agency may receive funds under this title only if teachers in schools participating in programs assisted under this title, and school boards or comparable authority responsible to the public with jurisdiction over the schools, have been involved in planning for those programs and will be involved in the evaluation thereof.

"(j) Parent Participation.--A local educational agency may receive funds under this title only if parents of children participating in programs assisted under this title are permitted to participate in the establishment of such programs and are informed of, and permitted to make recommendations with respect to, the instructional goals of the program and the progress of their children in such program, and such parents are afforded opportunities to assist their children in achieving such goals.

"(k) Sustaining Gains.--A local educational agency may receive funds under this title only if, in developing programs to be assisted under this title, the local educational agency will give due consideration to the inclusion of components designed to sustain the achievements of children beyond the school year in which the program is conducted, through such means as summer programs and intermediate and secondary level programs.

"(1) Training of Education Aides.--A local educational agency may receive funds under this title for programs and projects involving education aides, including volunteers, only if it has in effect well-developed plans providing for coordinated programs of training in which education aides, including volunteers, and the professional staff whom they are assisting will participate together.

"(m) Control of Funds.--A local educational agency may receive funds under this title only if control of such funds, and title to property derived therefrom, is in a public agency for the uses and purposes provided in this title, and only if a public agency will administer such funds and property.

"(n) Construction.--A local educational agency may use funds received under this title for projects for construction of school facilities only if--,

"(1) the project is not inconsistent with overall State plans for the construction of school facilities and the requirements of section

433 of the General Education Provisions Act // 20 USC 1232b. //

are complied with on all such projects,

"(2) in developing plans for such facilities due consideration has been given to compliance with such standards as the Secretary may prescribe or approve in order to ensure that facilities constructed with the use of Federal funds under this title are, to the extent appropriate in view of the uses to be made of the facilities, accessible to and usable by, handicapped persons, and

"(3) in developing plans for such facilities, due consideration has been given to excellence of architecture and design, and inclusion of works of art (not representing more than 1 per centum of the cost of the project).

"(o) Jointly Operated Programs.--Two or more local educational agencies may, at their option, enter into an agreement for carrying out jointly operated programs and projects assisted under this title.

" PARENTAL INVOLVEMENT

" Sec. 125. // 20 USC 2735. // (a) Establishment of Advisory Councils.--(1) A local educational agency may receive funds under this title only if it establishes an advisory council for its entire school district which--,

"(A) has a majority of members who are parents of children to be served by projects assisted under this title;

"(B) is composed of members elected by the parents in each district; and

"(C) includes representatives of children and schools eligible to be served by, but not currently participating in, programs assisted with funds provided under this title.

"(2)(A) A local educational agency may receive funds under this title only if it establishes an advisory council for each project area or project school, except as provided in subparagraph (B), which--,

"(i) has a majority of members who are parents of children to be served by programs assisted under this title, and

"(ii) is composed of members elected by the parents in each project area or project school.

"(B) In the case of any project area or project school in which not more than one full-time equivalent staff member is paid with funds provided under this title, and in which not more than forty students participate in such programs, the requirements of subparagraph (A) shall be waived.

"(C) In the case of any project area or project school in which 75 or more students are served by programs assisted by funds provided under this title, each such project area or project school advisory council, in addition to meeting the requirements of subparagraph (A), shall--,

"(i) be composed of not less than 8 members, who shall serve for terms of two years, after which time they may be re-elected;

"(ii) elect officers of the council after it has been fully constituted; and

"(iii) meet a sufficient number of times per year, according to a schedule and at locations to be determined by such council.

"(3) Any individual who is a teacher at a school serving a project area or is a parent of a child residing in an eligible school attendance area or attending an eligible school shall be eligible to be elected as a member of the district-wide advisory councils established pursuant to paragraph (1), but nothing in this sentence shall preclude the eligibility of other individuals who are residents in that district. No individual who is a teacher at a project school or a school serving a project area shall be ineligible to be elected as a member of a district-wide or project area or school advisory council on the basis of residency outside such area or district.

"(b) Responsibilities of Advisory Councils.--Each local educational agency shall give each advisory council which it establishes under subsection (a) responsibility for advising it in planning for, and implementation and evaluation of, its programs and projects assisted under this title.

"(c) Access to Information.--(1) Each local educational agency shall provide without charge to each member of an advisory council established by such an agency under subsection (a) of this section--,

"(A) a copy of the text of this title,

"(B) a copy of any Federal regulations and guidelines issued under such title; and

"(C) a copy of appropriate State regulations and guidelines associated with this title.

"(2) Each State educational agency shall provide a copy of any report resulting from State or Federal auditing, monitoring, or evaluation activities in any district to the parent advisory council established pursuant to subsection (a)(1) in such district.

"(d) Training Programs.--Each local educational agency application for funding under this title shall describe a program for training the members of advisory councils established pursuant to subsection (a) to carry out their responsibilities as described in subsection (b). Such training program--,

"(1) shall be planned in full consultation with the members of such advisory councils;

"(2) shall provide each member of each such council with appropriate training materials; and

"(3) may permit the use of funds under this title for expenses associated with such training, including expenses associated with the attendance of such members at training sessions.

"(e) Workshops on Parental Involvement.--For each fiscal year for which payments are made to State educational agencies under this title, the Commissioner shall sponsor workshops in the several regions of the United States which shall be designed to assist local educational agencies to work with and provide training to parent advisory councils established under subsection (a) of this section and to facilitate parental involvement in the programs conducted under this title. The workshops shall be planned and conducted in consultation with members of parent advisory councils in the region served by the workshop.

"(f) Assessment of Parental Involvement and Training.--The National Institute of Education shall assess the effectiveness of (1) various forms of parental involvement, including parent advisory councils, on school governance, student achievement, and other purposes of this title, and (2) various methods of training the members of parent advisory councils, and shall report the results of such assessments to the Congress and the public.

"(g) Authorization of Appropriations.--Ther are authorized to be appropriated for fiscal year 1979 and for each succeeding fiscal year ending prior to October 1, 1983, such sums as may be necessary to carry out the provisions of subsections (e) and (f) of this section.

" FUNDS ALLOCATION

" Sec. 126. // 20 USC 2736. // (a) Maintenance of Effort.--(1) Except as provided in paragraph (2), a local educational agency may receive funds under this title for any fiscal year only if the State educational agency finds that the combined fiscal effort per student or the aggregate expenditures (as determined in accordance with regulations of the Commissioner) of that agency and the State with respect to the provision of free public education by that agency for the preceding fiscal year was not less than such combined fiscal effort per student or the aggregate expenditures for that purpose for the second preceding fiscal year.

"(2) The Commissioner may waive, for one fiscal year only, the requirements of this subsection if he determines that such a waiver would be equitable due to exceptional and unforeseen circumstances such as a natural disaster or a precipitous and unforeseen decline in the financial resources of the local educational agency. In any case in which a waiver under this paragraph is granted, the Commissioner shall reduce the amount of Federal payment for the program affected for the current fiscal year in the exact proportion to which the amount expended (either on an average per pupil or aggregate basis) was less than the amount required by paragraph (1). No level of funding permitted under such a waiver may be used as the basis for computing the fiscal effort required, under paragraph (1), for years subsequent to the year covered by such waiver. Such fiscal effort shall be computed on the basis of the level of funding which would, but for such waiver, have been required.

"(3) The Commissioner shall establish objective criteria of general applicability to carry out the waiver authority contained in this subsection.

"(b) Use of Funds Limited to Excess Costs.--Subject to the provisions of section 131, a local educational agency may use funds received under this title only for the excess costs of programs and projects referred to in section 124(a). As used in this subsection, the term 'excess costs' means costs directly attributable to programs and projects which exceed the average per pupil expenditure of a local educational agency in the most recent year for which satisfactory data are available for pupils in the grade or grades included in such programs or projects.

"(c) Federal Funds to Supplement, Not Supplant Regular Non-Federal Funds.--A local educational agency may use funds received under this title only so as to supplement and, to the extent practical, increase the level of funds that would, in the absence of such Federal funds, be made available from regular non-Federal sources and from non-Federal sources for State phase-in programs described in section 131(b) for the education of pupils participating in programs and projects assisted under this title, and in no case may such funds be so used as to supplant such funds from such non-Federal sources.

"(d) Federal Funds Required to Supplement, Not Supplant Non-Federal Funds for Certain Special State and Local Programs.--(1) Subject to section 132, a local educational agency may use funds received under this title only so as to supplement and, to the extent practical, increase the level of funds that would, in the absence of such Federal funds, be made available from non-Federal sources for each of the special programs described in subsection (b) of section 131 for the education of educationally deprived children, in the aggregate, in eligible school attendance areas or attending eligible schools and in no case, as to supplant such funds from non-Federal sources.

"(2) It shall not be considered a violation of this subsection for a local educational agency, in carrying out a special program described in subsection (b) of section 131, to take into consideration funds made available under this title, and to coordinate such special programs with programs using such Federal funds, provided that educationally deprived children, in the aggregate, in eligible school attendance areas or attending eligible schools, receive at least the same level of such special State and local funds that would have been made available to uch children in the absence of funds under this title.

"(3) For purposes of this subsection, the level of funds that, in the absence of funds under this title would have been made available to such children shall be determined by reference to a plan for distributing such special funds. Such plan shall be based on objective criteria of need that do not discriminate against educationally deprived children, in the aggregate in eligible school attendance areas or attending eligible schools. The objective criteria chosen by the local educational agency shall prescribe, with particularity, the children as well as the schools, grade-spans, or school attendance areas eligible for assistance and the method for selecting the particular children who will receive assistance under such special State or local program and the schools or grade-spans which such children attend or the school attendance areas in which such children reside. The criteria for selecting children, schools, grade-spans, and school attendance areas for participation shall be either educational need, a reasonable proxy for educational need, level of poverty, or a combination of such factors. Educationally deprived children residing in eligible school attendance areas or attending eligible schools, satisfying such object criteria, must receive assistance under either this title or under such special State or local program before any child who does not satisfy such criteria receives such assistance.

"(e) Comparability of Services.--Subject to the provisions of section 131, a local educational agency may receive funds under this title only if State and local funds will be used in the district of such agency to provide services in project areas which, taken as a whole, are at least comparable to services being provided in areas in such district which are not receiving funds under this title. Where, under regulations of the Commissioner, all school attendance areas in the district of the agency are designated as project areas, the agency may receive such funds only if State and local funds are used to provide services which, taken as a whole, are substantially comparable, in accordance with regulations of the Commissioner, in each project area. Each local educational agency shall report on or before July 1 of each year with respect to its compliance with this subsection, except for local educational agencies which were not required to report upon the date of enactment of the Education Amendments of 1978, unless the Commissioner otherwise provides by regulation.

" ACCOUNTABILITY

" Sec. 127. // 20 USC 2737 // (a) Recordkeeping.--Each local educational agency which receives funds under this title shall keep such records and afford such access thereto as the State educational agency shall prescribe, including records which fully disclose the amount and disposition of such funds, the total cost of programs and projects in connection with which such funds are used, the amount of the portion of the cost of the program or project supplied by other sources, and such other records as will facilitate an effective audit. Whenever a local educational agency carries on a single compensatory education program paid for out of funds under this title as well as State or local funds which meets all of the requirements of this title and whenever, under section 131, the local educational agency excludes expenditures from State and local sources in determining compliance with section 126 (b) and (e), the State educational agency need not require the Federal funds to be accounted for separately. In any proceeding, State or Federal, for the recoupment of any such funds which were misspent or misapplied, the percentage of the funds so misspent or misapplied which shall be deemed to be Federal funds shall be equal to the percentage of the funds used, or intended for use, for the program or project which were Federal funds.

"(b) Reporting.--Each local educational agency which receives funds under this title shall make an annual report and such other reports to the State educational agency, in such form and containing such information (which in the case of reports relating to performance is in accordance with specific performance criteria related to program objectives), as may be reasonably necessary to enable the State educational agency to perform its duties under this title, including information relating to the educational achievement of students participating in programs and projects assisted under this title.

"(c) Access to Information.--Each local educational agency which applies for or receives funds under this title shall make the application and all pertinent documents related thereto available to parents, teachers, and other members of the general public.

" COMPLAINT RESOLUTION

" Sec. 128. // 20 USC 2738. // Each local educational agency which receives funds under this title shall develop and implement, in accordance with criteria prescribed by the Commissioner, written procedures for the resolution of complaints made to that agency by parent advisory councils, parents, teachers, or other concerned organizations or individuals concerning violations of this title, or of applicable provisions of the General Education Provisions Act in connection with programs under this title. Such procedures shall--,

"(1) provide specific time limits for investigation and resolution of complaints, which shall not exceed thirty days unless a longer period of time is provided by the State educational agency due to exceptional circumstances in accordance with regulations established by the Commissioner;

"(2) provide an opportunity for the complainant or the complainant's representative, or both, to present evidence, including an opportunity to question parties involved;

"(3) provide the right to appeal the final resolution of the local educational agency to the State educational agency within thirty days after receipt of the written decision; and

"(4) provide for the dissemination of information concerning these procedures to interested parties, including all district and school parent advisory councils.

" INDIVIDUALIZED PLANS

" Sec. 129. // 20 USC 2739. // It is the intent of the Congress to encourage, whenever feasible, the development for each educationall deprived child participating in a program under this title of an individualized educational plan (maintained and periodically evaluated), agreed upon jointly by the local educational agency, the teacher, a parent or guardian of the child, and, when appropriate, the child.

" PARTICIPATION OF CHILDREN ENROLLED IN PRIVATE

SCHOOLS

" Sec. 130. // 20 USC 2740. // (a) General Requirements.--To the extent consistent with the number of educationally deprived children in the school district of the local educational agency who are enrolled in private elementary and secondary schools, such agency shall make provision for including special educational services and arrangements (such as dual enrollment, educational radio and television, and mobile educational services and equipment) in which such children can participate and meeting the requirements of sections 122 and 123, and subsections (a), (b), (d), and (l) of section 124, and subsection (c) of section 126. Expenditures for educational services and arrangements pursuant to this section for educationally deprived children in private schools shall be equal (taking into account the number of children to be served and the special educational needs of such children) to expenditures for children enrolled in the public schools of the local educational agency.

"(b) By-Pass Provision.--(1) If a local educational agency is prohibited by law from providing for the participation in special programs for educationally deprived children enrolled in private elementary and secondary schools as required by subsection (a), the Commissioner shall waive such requirement, and shall arrange for the provision of services to such children through arrangements which shall be subject to the requirements of subsection (a).

"(2) If the Commissioner determines that a local educational agency has substantially failed to provide for the participation on an equitable basis of educationally deprived children enrolled in private elementary and secondary schools as required by subsection (a), he shall arrange for the provision of services to such children through arrangements which shall be subject to the requirements of subsection (a), upon which determination the provisions of subsection (a) shall be waived.

"(3)(A) When the Commissioner arranges for services pursuant to this subsection, he shall, after consultation with the appropriate public and private school officials, pay to the provider the cost of such services, including the administrative cost of arranging for such services, from the appropriate allocation or allocations under this title.

"(B) Pending final resolution of any investigation or complaint that could result in a determination under this subsection, the Commissioner may withhold from the allocation of the affected State or local educational agency the amount he estimates would be necessary to pay the cost of such services.

"(C) Any determination by the Commissioner under this section shall continue in effect until the Commissioner determines that there will no longer be any failure or inability on the part of the local educational agency to meet the requirements of subsection (a).

"(4)(A) The Commissioner shall not take any final action under this subsection until the State educational agency and local educational agency affected by such action have had an opportunity, for at least forty-five days after receiving written notice thereof, to submit written objections and to appear before the Commissioner or his designee to show cause why such action should not be taken.

"(B) If a State or local educational agency is dissatisfied with the Commissioner's final action after a proceeding under subparagraph (A) of this paragraph, it may within sixty days after notice of such action, file with the United States court of appeals for the circuit in which such State is located a petition for review of that action. A copy of the petition shall be forthwith transmitted by the clerk of the court to the Commissioner. The Commissioner 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.

"(C) The findings of fact by the Commissioner, if supported by substantial 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.

"(D) Upon the filing of a petition under subparagraph (B), the court shall have jurisdiction to affirm the action of the Commissioner or to set it aside, in whole or in part. The judgment of the court shall be 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.

" Subpart 4--Exemptions From Certain Program

Requirements

" EXCLUSIONS FROM EXCESS COSTS AND COMPARABILITY

PROVISIONS FOR

CERTAIN SPECIAL STATE AND LOCAL PROGRAMS

" Sec. 131. // 20 USC 2751. // (a) In General.--For the purpose of determining compliance with the requirement of section 126(b) (relating to use of funds only for excess costs of programs and projects) and of section 126(e) (relating to comparability of services), a local educational agency may, at its option, exclude State and local funds expended for carrying out a special program or a State phase-in program.

"(b) Special Program and State Phase-In Program Defined.--, For purposes of this section--,

"(1) a special program is limited to--,

"(A) a State compensatory education program which the Commissioner has determined in advance under subsection (e) meets the requirements of subsection (c) and which

the

State educational agency determines is being

implemented by

the local educational agency in accordance with

subsection

(c);

"(B) a State compensatory education program which the Commissioner has determined in advance under subsection (e) does not satisfy the requirements of subsection

(c), but

which he has determined permits the local educational

agency,

at its option, to use such special State funds in

accordance

with subsection (c), provided that the local educational

agency designs a program which the State educational

agency

determines in advance under subsection (f) meets the

requirements of subsection (c) and which the State

educational

agency determines will be implemented by the local

educational agencies in accordance with subsection (c);

or

"(C) a local compensatory education program which the State educational agency has determined in advance

under

subsection (f) meets the requirements of subsection (c)

and

which the State educational agency determines is being

implemented

in accordance with subsection (c); and

"(D) a bilingual program for children of limited English proficiency or special educational program for

handicapped

children or children with specific learning

disabilities; and

"(2) a State phase-in program is a program which the Commissioner has determined in advance under subsection (e) meets the requirements of subsection (d) and which the State educational agency determines will be implemented by local educational agencies in accordance with subsection (d).

"(c) State and Local Compensatory Education Programs Similar to Title I Programs.--A State or local program meets the requirements of this subsection if it is similar to programs assisted under this part. The Commissioner shall consider a State or local program to be similar to programs assisted under this part if--,

"(1) all children participating in the program are educationally deprived,

"(2) the program is based on performance objectives related to educational achievement and is evaluated in a manner consistent with those performance objectives,

"(3) the program provides supplementary services designed to meet the special educational needs of the children who are participating,

"(4) the local educational agency keeps such records and affords such access thereto as are necessary to assure the correctness and verification of the requirements of clauses (1), (2), and (3) of this subsection, and

"(5) the State educational agency monitors performance under the program to assure that the requirements of clauses (1), (2), (3), and (4) of this subsection are met.

"(d) Certain State Phase-In Programs.--A State education program which is being phased into full operation meets the requirements of this subsection if the Commissioner is satisfied that--,

"(1) the program is authorized and governed specifically by the provisions of State law;

"(2) the purpose of the program is to provide for the comprehensive and systematic restructuring of the total educational environment at the level of the individual school;

"(3) the program is based on objectives, including but not limited to, performance objectives related to educational achievement and is evaluated in a manner consistent with those objectives;

"(4) parents and school staff are involved in comprehensive planning, implementation, and evaluation of the program;

"(5) the program will benefit all children in a particular school or grade-span within a school;

"(6) schools participating in a program describe, in a school level plan, program strategies for meeting the special educational needs of educationally deprived children;

"(7) the phase-in period of the program is not more than six school years, except that the phase-in period for a program commenced prior to the date of enactment of the Education Amendments of 1978 shall be deemed to begin on the date of enactment of such Amendments;

"(8) at all times during such phase-in period at least 50 per centum of the schools participating in the program are the schools serving project areas which have the greatest number or concentrations of educationally deprived children or children from low-income families;

"(9) State funds made available for the phase-in program will supplement, and not supplant, State and local funds which would, in the absence of the phase-in program, have been provided for schools participating in such program;

"(10) the local educational agency is separately accountable, for purposes of compliance with paragraphs (1) through (6), (8), and (9) of this subsection, to the State educational agency for any funds expended for such program; and

"(11) the local educational agencies carrying out the program are complying with paragraphs (1) through (6), (8), and (9) and the State educational agency is complying with paragraph (10).

"(e) Advance Determinations by the Commissioner.--The Commissioner shall make an advance determination of whether or not a State Program described in subsection (b)(1) (A) or (B) or (b)(2) meets the requirements of subsection (c) or meets the requirements of subsection (d). The Commissioner shall require each State educational agency to submit to him the provisions of State law together with implementing rules, regulations, orders, guidelines, and interpretations which are necessary for him to make such an advance determination. The Commissioner's determination shall be in writing and shall include the reasons for his determination. Whenever there is any material change in pertinent State law affecting the program, the State educational agency shall submit such changes to the Commissioner.

"(f) Advance Determination by the State Educational Agency.--The State educational agency shall make an advance determination of whether or not a program described in subsection (b)(1)(C) meets the requirements of subsection (c). The State educational agency shall require each local educational agency to submit the provisions of local law, together with implementing rules, regulations, guidelines, and interpretations which are necessary to make such an advance determination. The State educational agency's determination shall be in writing and shall include the reasons for the determination. Whenever there is any material change in pertinent local law affecting the program, the local educational agency shall submit such changes to the State educational agency.

" LIMITED EXEMPTION TO SUPPLEMENT, NOT SUPPLANT,

REQUIREMENT

WHERE CERTAIN SPECIAL PROGRAMS FOR EDUCATIONALLY

DEPRIVED CHILDREN

ARE FULLY FUNDED

" Sec. 132. // 20 USC 2752. // Whenever for a fiscal year--,

"(1) a local educational agency provides special State and local funds for programs for educationally deprived children which qualify under clause (A), (B), or (C) of section 131(b)(1) for an exception from the comparability and excess costs provisions under such section 131, and

"(2) the amount of such special State and local funds provided in eligible school attendance areas and for eligible schools when added to the Federal funds provided for programs under this subpart equals the amount such agency is eligible to receive for such fiscal year under section 111(a)(2) (without regard to adjustments under section 193),

then the local educational agency may, without being considered in violation of section 126(d), utilize additional State and local funds for special programs and projects which are solely for educationally deprived children residing in nonproject areas or attending nonproject schools, including areas and schools ineligible for assistance under this title. The exemption in the preceding sentence does not apply to the extent the level of such special State and local funds, per child participating in such programs residing in ineligible school attendance areas or attending ineligible schools, exceeds the amount of funds, per child participating in programs in project areas, provided to the agency under this part plus the amount of such special State or local funds provided for use in such areas.

" SCHOOLWIDE PROJECTS

" Sec. 133. // 20 USC 2753. // (a) Use of Funds for Schoolwide Projects.--In the case of any school serving an attendance area that is eligible to receive services under this title and in which not less than 75 per centum of the children are from low-income families (in accordance with criteria established by the Commissioner), the local educational agency may carry out a project under this title to upgrade the entire educational program in that school if the requirements of subsection (b) are met.

"(b) Designation of Schools.--A school may be designated for a schoolwide project under subsection (a) if--,

"(1) a plan has been developed for that school by the local educational agency and has been approved by the State educational agency providing for--,

"(A) a comprehensive assessment of the educational needs of all students in the school, in particular the

special needs of

educationally deprived children, and

"(B) an instructional program designed to meet the

special

needs of all students in the school;

"(2) the plan has been developed with the involvement of those individuals who will be engaged in carrying out the plan, including parents, teachers, teacher aides, administrators, and secondary students if the plan relates to a secondary school;

"(3) the plan provides for consultation among those individuals as to the educational progress of all students;

"(4) the plan has been approved by the advisory council for that school established under section 125;

"(5) appropriate training is provided to teachers and teacher aides to enable them effectively to carry out the plan;

"(6) the plan includes procedures for evaluation involving the participation of the individuals listed in paragraph (2), and opportunities for periodic improvements in the plan based on the results of those evaluations;

"(7)(A) in the case of a school district in which there are one or more schools described in subsection (a) and there are also one or more other schools serving project areas, the local educational agency makes the Federal funds provided under this part available for children in such schools described in subsection (a) in amounts which per educationally deprived child served, equal or exceed the amount of such funds made available per educationally deprived child served in such other schools;

"(B) the local educational agency makes special supplementary State and local funds available for the children in schools described in subsection (a) in amounts which, per child served who is not educationally deprived, equal or exceed the amount of Federal funds provided under this part which, per educationally deprived child served, are made available for children in such schools; and

"(C) the average per pupil expenditure in schools described in subsection (a) (excluding amounts expended under a State compensatory education program) for the fiscal year in which the plan is to be carried out will not be less than such expenditure in such schools in the previous fiscal year.

"(c) Approval of School; Operation of Project.--(1) The State educational agency shall approve the plan of any local educational agency for a schoolwide project if that plan meets the requirements of subsection (b).

"(2) For any school which has such a plan approved, the local educational agency--,

"(A) shall, in order to carry out the plan, be relieved of any requirements under this title with respect to the commingling of funds provided under this title with funds available for regular programs;

"(B) shall not be required to identify particular children as being eligible to participate in programs assisted under this title; and

"(C) shall not be required to demonstrate that services provided with funds under this title are supplementary to the services regularly provided in the school.

" NONINSTRUCTIONAL DUTIES

" Sec. 134. // 20 USC 2754. // Notwithstanding any provision of subpart 3 of this part, personnel paid entirely by funds made available under this title may be assigned to certain limited, rotating, supervisory duties not related to classroom instruction, the benefits of which are not limited to participating children under this title. Such duties may include only those to which similarly situated personnel not hired with funds made available under the title are assigned at the same school site, and for which such similarly situated personnel are paid, and may not exceed the same proportion of total time as similarly situated personnel at the same school site, or 10 per centum of the total time, whichever is less.

" Part B--Programs Operated by State Agencies " Subpart 1--Programs for Migratory Children " GRANTS-- ENTITLEMENT AND AMOUNT

" Sec. 141. // 20 USC 2761. // (a) Entitlement.--A State educational agency or a combination of such agencies shall, upon application, be entitled to receive a grant for any fiscal year under this part to establish or improve, either directly or through local educational agencies, programs of education for migratory children of migratory agricultural workers or of migratory fishermen which meet the requirements of section 142.

"(b) Amount of Grant.--(1) Except as provided in sections 156 and 157, the total grants which shall be made available for use in any State (other than Puerto Rico) for this subpart shall be an amount equal to 40 per centum of the average per pupil expenditure in the State (or (A) in the case where the average per pupil expenditure in the State is less than 80 per centum of the average per pupil expenditure in the United States, of 80 per centum of the average per pupil expenditure in the United States, or (B) in the case where the average per pupil expenditure in the State is more than 120 per centum of the average per pupil expenditure in the United States, of 120 per centum of the average per pupil expenditure in the United States) multiplied by (i) the estimated number of such migratory children aged five to seventeen, inclusive, who reside in the State full time, and (ii) the full-time equivalent of the estimated number of such migratory children aged five to seventeen, inclusive, who reside in the State part time, as determined by the Commissioner in accordance with regulations, except that if, in the case of any State, such amount exceeds the amount required under section 142, the Commissioner shall allocate such excess, to the extent necessary, to other States, whose total of grants under this sentence would otherwise be insufficient for all such children to be served in such other States. In determining the full-time equivalent number of migratory children who are in a State during the summer months, the Commissioner shall adjust the number so determined to take into account the special needs of those children for summer programs and the additional costs of operating such programs during the summer. In determining the number of migrant children for the purposes of this section the Commissioner shall use statistics made available by the migrant student record transfer system or such other system as he may determine most accurately and fully reflects the actual number of migrant students.

"(2) For each fiscal year, the Commissioner shall determine the percentage which the average per pupil expenditure in Puerto Rico is of the lowest average per pupil expenditure of any of the fifty States. The grant which Puerto Rico shall be eligible to receive under this section for a fiscal year shall be the amount arrived at by multiplying the number of such migrant children in Puerto Rico by the product of--,

"(A) the percentage determined under the preceding sentence, and

"(B) 32 per centum of the average per pupil expenditure in the United States.

" PROGRAM REQUIREMENTS

" Sec. 142. // 20 USC 2762. // (a) Requirements for Approval of Application.--The Commissioner may approve an application submitted under section 141(a) only upon his determination--,

"(1) that payments will be used for programs and projects (including the acquisition of equipment and where necessary the construction of school facilities) which are designed to meet the special educational needs of migratory children of migratory agricultural workers or of migratory fishermen, and to coordinate such programs and projects with similar programs and projects in other States, including the transmittal of pertinent information with respect to school records of such children;

"(2) that in planning and carrying out programs and projects there has been and will be appropriate coordination with programs administered under part B of title III of the Economic Opportunity Act of 1964

// 42 USC 2841. //

and under section 303 of the Comprehensive Employment and Training Act;

"(3) that such programs and projects will be administered and carried out in a manner consistent with the basic objectives of subpart 3 of part A, other than sections 122, 123, 126(d), and 130 thereof;

"(4) that, in planning and carrying out programs and projects at both the State and local educational agency level, there has been and will be appropriate consultation with parent advisory councils established in accordance with regulations of the Commissioner (consistent with the requirements of section 125( a)); and

"(5) that, in planning and carrying out programs and projects, there has been adequate assurance that provision will be made for the preschool education needs of migratory children of migratory agricultural workers or of migratory fishermen, whenever such agency determines that compliance with this paragraph will not detract from the operation of programs and projects described in paragraph (1) of this subsection after considering funds available for this purpose.

"(b) Continuation of Migrant Status.--For purposes of this subpart, with the concurrence of his parents, a migratory child of a migratory agricultural worker or of a migratory fisherman shall be deemed to continue to be such a child for a period, not in excess of five years, during which he resides in the area served by the agency carrying on a program or project under this section. Such children who are presently migrant, as determined pursuant to regulations of the Commissioner, shall be given priority in this consideration of programs and activities contained in applications submitted under this subsection.

"(c) By-Pass Provision.--If the Commissioner determines that a State is unable or unwilling to conduct educational programs for migratory children of migratory agricultural workers or of migratory fishermen, or that it would result in more efficient and economic administration, or that it would add substantially to the welfare or educational attainment of such children, he may make special arrangements with other public or nonprofit private agencies to carry out the purposes of this section in one or more States, and for this purpose he may use all or part of the total of grants available for any such State under this section.

" COORDINATION OF MIGRANT EDUCATION ACTIVITIES

" Sec. 143. // 20 USC 2763. // (a) Activities Authorized.--The Commissioner is authorized to make grants to, or enter into contracts with, State educational agencies to operate a system for the transfer among State and local educational agencies of migrant student records and to carry out other activities, in consultation with the States, to improve the interstate and intrastate coordination among State and local educational agencies of the educational programs available for migratory students.

"(b) Authorization of Appropriations.--There are authorized to be appropriated for this section not more than 5 per centum of the total amount paid for the preceding fiscal year to State educational agencies under section 141.

" Subpart 2--Programs for Handicapped Children " AMOUNT AND ELIGIBILITY

" Sec. 146. // 20 USC 2771 // (a) Eligibility for Grant.--A State agency which is directly responsible for providing free public education for handicapped children (as that term is defined in section 602(1) of the Education of the Handicapped Act), shall be eligible to receive a grant under this subpart for any fiscal year.

"(b) Amount of Grant.--(1) Except as provided in section 156 and 157, the grant which a State agency referred to in subsection (a) (other than the agency for Puerto Rico) shall be eligible to receive under this section shall be an amount equal to 40 per centum of the average per pupil expenditure in the State (or (A) in the case where the average per pupil expenditure in the State is less than 80 per centum of the average per pupil expenditure in the United States, of 80 per centum of the average per pupil expenditure in the United States, or (B) in the case where the average per pupil expenditure in the State is more than 120 per centum of the average per pupil expenditure in the United States, of 120 per centum of the average per pupil expenditure in the United States), multiplied by the number of such handicapped children in average daily attendance, as determined by the Commissioner, at schools for handicapped children operated or supported by the State agency, including schools providing special education for handicapped children under contract or other arrangement with such State agency, in the most recent fiscal year for which satisfactory data are available.

"(2) For each fiscal year, the Commissioner shall determine the percentage which the average per pupil expenditure in Puerto Rico is of the lowest average per pupil expenditure of any of the fifty States. The grant which Puerto Rico shall be eligible to receive under this subpart for a fiscal year shall be the amount arrived at by multiplying the number of such handicapped children in Puerto Rico by the product of--,

"(A) the percentage determined under the preceding sentence, and

"(B) 32 per centum of the average per pupil expenditure in the United States.

"(c) Counting of Children Transferring From State to Local Programs.--In the case where a child described in subsection (a) leaves an educational program for handicapped children operated or supported by the State agency in order to participate in such a program operated or supported by a local educational agency, such child shall be counted under subsection (b) if (1) he continues to receive an appropriately designed educational program and (2) the State agency transfers to the local educational agency in whose program such child participates an amount equal to the sums received by such State agency under this section which are attributable to such child, to be used for the purposes set forth in section 147.

" PROGRAM REQUIREMENTS

" Sec. 147. // 20 USC 2772. // A State shall use the payments made under this subpart only for programs and projects (including the acquisition of equipment and, where necessary, the construction of school facilities) which are designed to meet the special educational needs of handicapped children. Such programs and projects shall be administered and carried out in a manner consistent with subpart 3 of part A, other than sections 122, 123, 125, 126(d), 126(e), and 130 thereof. The State agency shall provide assurances to the Commissioner that each such child in average daily attendance counted under subsection (b) of section 146 will be provided with such a program, commensurate with his special needs, during any fiscal year for which such payments are made.

" Subpart 3--Programs for Neglected and Delinquent

Children

" AMOUNT AND ENTITLEMENT

" Sec. 151. // 20 USC 2781. // (a) Entitlement to Grants.--A State agency which is directly responsible for providing free public education for children in institutions for neglected or delinquent children or in adult correctional institutions shall be entitled to receive a grant under this subpart for any fiscal year (but only if grants received under this subpart are used only for children in such institutions).

"(b) Amount of Grant.--(1) Except as provided in sections 156 and 157, the grant which such an agency (other than the agency for Puerto Rico) shall be eligible to receive shall be an amount equal to 40 per centum of the average per pupil expenditure in the State (or (A) in the case where the average per pupil expenditure in the State is less than 80 per centum of the average per pupil expenditure in the United States, of 80 per centum of the average per pupil expenditure in the United States, or (B) in the case where the average per pupil expenditure in the State is more than 120 per centum of the average per pupil expenditure in the United States, of 120 per centum of the average per pupil expenditure in the United States) multiplied by the number of such neglected or delinquent children in average daily attendance, as determined by the Commissioner, at schools for such children operated or supported by that agency, including schools providing education for such children under contract or other arrangement with such agency, in the most recent fiscal year for which satisfactory data are available.

"(2) For each fiscal year, the Commissioner shall determine the percentage which the average per pupil expenditure in Puerto Rico is of the lowest average per pupil expenditure of any of the fifty States. The grant which Puerto Rico shall be eligible to receive under this subpart for a fiscal year shall be the amount arrived at by multiplying the number of such neglected or delinquent children in Puerto Rico by the product of--,

"(A) the percentage determined under the preceding sentence, and

"(B) 32 per centum of the average per pupil expenditure in the United States.

" PROGRAM REQUIREMENT

" Sec. 152. // 20 USC 2782. // (a) Use of Payments.--A State agency shall use payments under this subpart only for programs and projects (including the acquisition of equipment and where necessary the construction of school facilities) which are designed to meet the special educational needs of children in institutions for neglected or delinquent children or in adult correctional institutions. Such programs and projects shall be designed to support educational services supplemental to the basic education of such children which must be provided by the State, and such programs and projects shall be administered and carried out in a manner consistent with subpart 3 of part A, other than sections 122, 123, 125, 126(d), 126(e), and 130 thereof.

"(b) Three-Year Projects.--Where a State agency operates programs under this title in which children are likely to participate for more than one year, the State educational agency may approve the application for a grant under this subpart for a period of more than one year, but not to exceed three years.

" TRANSITION SERVICES

" Sec. 153. // 20 USC 2783. // (a) Grants Authorized.--The Commissioner is authorized to make grants to State and local educational agencies to support projects to facilitate the transition of children from State operated institutions for neglected and delinquent children into locally operated programs. Grants under this section shall be used to provide special educational services for such children in schools other than State operated institutions.

"(b) Appropriations Authorized.--There are authorized to be appropriated for the purposes of this section for any fiscal year, not to exceed 5 per centum of the amount State agencies are entitled to receive under section 151 for that year.

" Subpart 4--General Provisions for State Operated

Programs

" RESERVATION OF FUNDS FOR TERRITORIES

" Sec. 156. // 20 USC 2791. // There is authorized to be appropriated for each fiscal year for purposes of each of subparts 1,2, and 3 of this part, an amount equal to not more than 1 per centum of the amount appropriated for such year for such subparts, for payments to Guam, American Samoa, the Virgin Islands, the Northern Mariana Islands, and the Trust Territory of the Pacific Islands under each such subpart. The amounts appropriated for each such subpart shall be allotted among Guam, American Samoa, the Virgin Islands, the Northern Mariana Islands, and the Trust Territory of the Pacific Islands according to their respective need for such grants, based on such criteria as the Commissioner determines will best carry out the purposes of this title.

" MINIMUM PAYMENTS FOR STATE OPERATED PROGRAMS

" Sec. 157. // 20 USC 2792. // No State shall receive in any fiscal year prior to October 1, 1983, pursuant to subpart 1,2 or 3 of this part an amount which is less than 85 per centum of the amount which that State received in the prior fiscal year pursuant to the comparable sections of this title as in effect immediately preceding the enactment of the Education Amendments of 1978 or the comparable subpart of this part, whichever was in effect for such prior fiscal year, and, for any fiscal year ending prior to October 1, 1982, no State shall receive, pursuant to subpart 1 of this part, an amount which is less than 100 per centum of the amount that State received in the prior fiscal year pursuant to the comparable section of this title as in effect immediately prior to the enactment of the Education Amendments of 1978 or under subpart 1 of this part, whichever was in effect for such prior fiscal year.

" Part C--State Administration of Programs and

Projects

" Subpart 1--Applicability; State Applications " APPLICABILITY

" Sec. 161. // 20 USC 2801. // The provisions of this part (other than section 162 and subpart 3) shall apply in any fiscal year in which the provisions of section 510(b)(2) of this Act are not met.

" STATE APPLICATIONS

" Sec. 162. // 20 USC 2802. // (a) Submission of State Applications.--Any State desiring to participate under this title (except with respect to the program provided for in subpart 1 of part B relating to migratory children) shall have on file with the Commissioner an application submitted by its State educational agency.

"(b) Contents of State Applications.--Each application required by subsection (a) shall contain (1) satisfactory assurances that the State educational agency will comply with the requirements of this part, and (2) such information as the Commissioner may consider necessary for him to make the findings required by section 182.

" Subpart 2--Duties Imposed on State Educational

Agencies

" APPLICATION APPROVAL

" Sec. 164. // 20 USC 2811. // (a) Requirements for Approval.--(1) A State educational agency shall approve an application of a local educational agency or a State agency under this title if (A) such State educational agency is satisfied, after considering the factors specified in paragraph (2), that such applicant agency will use the funds received under the application in a manner which meets the requirements of this title, the General Education Provisions Act, // 20 USC 1221. // and the rules, regulations, procedures, guidelines, criteria, or other requirements adopted by such agency which pertain to programs and projects assisted under this title, and (B) such applicant agency is not out of compliance with a determination of the State educational agency or the Commissioner that it repay funds paid it under this title which were misused, and is not out of compliance with a compliance agreement under section 169(c).

"(2) A state educational agency may approve an application under paragraph (1), only after it has considered, where pertinent, (A) the results of Federal and State audits, (B) the results of Federal and State monitoring reports, (C) administrative complaints made by parents or other individuals concerning the applicant agency's compliance with this title, and (D) evaluations conducted under section 124(g).

(b) Payments.--Except as provided in section 194, a State educational agency may make payments from funds received under this title only for programs and projects which it has approved under subsection (a).

"(c) Opportunity for Hearing.--A State educational agency shall not finally disapprove in whole or in part any application for funds under part A or under subpart 2 or subpart 3 of part B without first affording the local educational agency or other applicant submitting the application reasonable notice and opportunity for a hearing.

" STATE RULEMAKING

" Sec. 165. // 20 USC 2812. // Nothing in this title shall be deemed to prohibit a State educational agency from adopting rules, regulations, procedures, guidelines, criteria, or other requirements applicable to programs and projects assisted under this title if they do not conflict with the provisions of this title, with regulations promulgated by the Commissioner implementing this title, or with other applicable Federal law. The Commissioner shall encourage a State educational agency, in adopting such rules, regulations, procedures, guidelines, criteria, or other requirements to recognize the special and unique needs and circumstances of the State and of each local educational agency in the State.

" TECHNICAL ASSISTANCE AND DISSEMINATION OF

INFORMATION

" Sec. 166. // 20 USC 2813. // Each State educational agency shall carry on a comprehensive program to provide technical assistance to local educational agencies and State agencies with respect to the use of funds received under this title. Such a program shall include technical assistance for management procedures, for planning, development, implementation, and evaluation of programs, and for preparation of applications, as well as other forms of technical assistance needed by local educational agencies and State agencies. Each State educational agency shall also adopt effective procedures for disseminating to local educational agencies and State agencies (1) significant and relevant information derived from educational research, (2) information about successful compensatory education projects, (3) information about other Federal and State funded programs which may provide needed health, social, and nutrition services to eligible participating children under this title, and (4) such other information as will assist local educational agencies and State agencies in planning, developing, implementing, and evaluating programs assisted under this title.

" MONITORING

" Sec. 167. // 20 USC 2814. // Each State educational agency shall adopt standards, consistent with minimum standards established by the Commissioner and with the State monitoring and enforcement plan submitted under section 171, for monitoring the effectiveness of programs and projects assisted under this title. such standards shall (1) describe the purpose and scope of monitoring; (2) specify the frequency of onsite visits; (3) describe the procedures for issuing and responding to monitoring reports, including but not limited to, the period of time in which the State educational agency must issue its report, the period of time in which the applicant agency must respond, and the appropriate followup by the State educational agency; (4) specify the methods for making monitoring reports available to parents, State and local auditors, and other persons, and (5) specify the methods for insuring that non-compliant practices are corrected.

" Sec. 168. // 20 USC 2815. // Each State educational agency shall adopt written procedures for receiving complaints, or reviewing appeals from decisions of local educational agencies with respect to complaints, concerning violations of this title or applicable provisions of the General Education Provisions Act // 20 USC 1221. // in connection with programs assisted under this title, and for conducting onsite investigations of such complaints which the State educational agency deems necessary. Such procedures shall include--,

"(1) specific time limits for resolving the complaint or completing the review and, if necessary, the independent onsite investigation, which shall not exceed sixty days unless exceptional circumstances exist;

"(2) an opportunity for the complainant or the complainant's representative, or both, and the local educational agency involved to present evidence, including the opportunity to question parties to the dispute and any of their witnesses;

"(3) the right to appeal the final resolution of the State educational agency to the Commissioner within thirty days after receipt of the written decision; and

"(4) dissemination, free of charge, of information concerning these procedures to interested parties, including all district and school advisory councils.

" WITHHOLDING OF PAYMENTS

" Sec. 169. // 20 USC 2816. // (a) Withholding.--Whenever a State educational agency, after reasonable notice and opportunity for a hearing (consistent with the requirements of section 434(b) of the General Education Provisions Act) to any local educational agency or State agency, before an impartial decisionmaker, finds that there has been a failure to comply substantially with any provision of subpart 3 of part A or subpart 2 or 3 of part B, the State educational agency shall notify such agency that further payments, in whole or in part, will not be made to it under this title until it is satisfied that there is no longer any such failure to comply. Until it is so satisfied, no further payments shall be made to such agency under this title, except as may be provided in a compliance agreement entered into under subsection (c). Pending the outcome of any proceeding under this subsection, the State educational agency may suspend, in whole or in part, payments to such agency, after such agency has been given reasonable notice and opportunity to show cause why such action should not be taken.

"(b) Notice to Public of State Withholding.--Upon submission to a local educational agency or a State agency of a notice that the State educational agency pursuant to subsection (a) is withholding payment, the State educational agency shall inform the district advisory council (if any) and shall take such additional action as may be necessary to bring the State action to the attention of the public.

"(c) Compliance Agreements.--A State educational agency may suspend the initiation or continuation of its withholding action under subsection (a) while there is in effect a compliance agreement with the local educational agency or State agency under this subsection. Such an agreement shall be deemed to be in effect for the period specified therein, except that if the local educational agency or State agency fails to comply with the terms agreed to, such agreement shall no longer be in effect and subsection (a) shall be fully operative. In implementing such subsection, the State educational agency shall take into account any partial compliance by such agency under such agreement. For purposes of this subsection, the term 'compliance agreement' means an agreement which--,

"(1) sets forth the terms and conditions to which the local educational agency or State agency has agreed in order to comply with the requirements of this title or the General Education Provisions Act

// 20 USC 1221. //

and regulations promulgated thereunder, and with the applicable rules, regulations, procedures, guidelines, criteria or other requirements adopted by the State educational agency;

"(2) addresses all the matters that formed the basis for the initiation of the withholding action by the State educational agency; and

"(3) may consist of a series of agreements that in the aggregate dispose of all such matters.

Within fifteen days after the execution of any compliance agreement, the State educational agency shall send a copy thereof to the district advisory council affected, and to each organization or person who filed a complaint with respect to any failure to comply which is covered by that agreement.

"(d) Review by the Commissioner.--A local educational agency or State agency may, in accordance with section 425(a) of the General Education Provisions Act, // 20 USC 1231b-2. // appeal a final determination of the State educational agency under subsection (a) to the Commissioner.

" AUDITS AND AUDIT RESOLUTION

" Sec. 170. // 20 USC 2817. // (a) Auditing.--Each State shall make provision for audits of the expenditure of funds received under this title to determine, at a minimum, the fiscal integrity of grant or subgrant financial transactions and reports, and the compliance with applicable statutes, regulations, and terms and conditions of the grant or subgrant. Such audits shall be made with reasonable frequency considering the nature, size, and complexity of the activity.

"(b) Audit Resolution.--Each State educational agency shall have in effect written procedures meeting minimum standards established by the Commissioner, to assure timely and appropriate resolutions of audit findings and recommendations arising out of audits provided for in subsection (a). Such procedures shall include a description of the audit resolution process, timetables for each step of the process, and an audit appeals process. Whenever under such procedures, the audit resolution process requires the repayment of Federal funds which were misspent or misapplied, such repayment may be made in either a single payment or in installments over a period not to exceed three years.

"(c) Requirement for Repayment.--A local educational agency or State agency shall repay from non-Federal sources or from Federal funds, no accountability for which is required to the Federal Government, the amount of funds under this title which have been finally determined through the audit resolution process to have been misspent or misapplied.

"(d) Review by the Commissioner.--A local educational agency or State agency may, in accordance with section 425(a) of the General Education Provisions Act, // 20 USC 1231b-2. // appeal a final determination of the State educational agency under subsection (b) to the Commissioner.

"(e) Failure To Repay.--If, following an affirmation by the Commissioner of a final determination of a State educational agency under subsection (b) or failure by a local educational agency or State agency to seek timely review by the Commissioner, such local educational agency or State agency refuses to repay from non-Federal sources, or from Federal funds no accountability for which is required to the Federal Government, funds which have been misspent or misapplied under this title, the State educational agency shall promptly notify the Commissioner and the Commissioner shall promptly initiate collection action.

" Subpart 3--Responsibilities of State Educational

Agencies to

Commissioner

" STATE MONITORING AND ENFORCEMENT PLANS

" Sec. 171. // 20 USC 2821. // (a) State Plan.--Each State educational agency participating in programs under this title shall submit, at such times (at least once every three years) and in such detail as the Commissioner shall prescribe, a State monitoring and enforceemnt plan. Such plan shall set forth--,

"(1) a program of regular visits by State educational agency personnel to projects assisted under this title;

"(2) the matters to be reviewed during such visits;

"(3) procedures for verifying information provided by local educational agencies and State agencies, including the use of other information available to the State to cross-check that information;

"(4) procedures for regular audits of local educational agency and State agency expenditures under this title, and procedures for the recovery of any expenditure determined not to be allowable under this title;

"(5) procedures for resolving each complaint received by the State relating to programs assisted under this title, including complaints refered to the State by the Commissioner and complaints by representatives of children enrolled in private schools that those children are not receiving the services to which they are entitled under this title; and

"(6) a description of the means by which the State educational agency has determined, and will continue to determine, the compliance by local educational agencies with the requirements of section 130 relating to the equitable provision of services to children enrolled in private schools.

"(b) Report.--Each plan submitted by a State educational agency under this section shall include a report, in such form as the Commissioner shall prescribe, of the activities undertaken by the State in the years since the previous plan was filed to carry out its monitoring and enforcement efforts under this title.

" REPORTING

" Sec. 172. // 20 USC 2822. // Each State educational agency shall make to the Commissioner (1) periodic reports (including the results of objective measurements required by section 124(g) and of research and replication studies) evaluating the effectiveness of payments under this title and of particular programs assisted under it in improving the educational attainment of educationally deprived children, and (2) such other reports as may be reasonably necessary to enable the Commissioner to perform his duties under this title (including such reports as he may require to determine the amounts which the local educational agencies of that State are eligible to receive for any fiscal year).

" RECORDKEEPING, FISCAL CONTROL, AND FUND ACCOUNTING

" Sec. 173. // 20 USC 2823 // Each State educational agency which receives funds under this title shall use fiscal control and fund accounting procedures that will ensure proper disbursement of, and accounting for, funds made available under this title, and keep such records, and afford access thereto, as the Commissioner shall prescribe, including records which fully disclose the amount and disposition by such agency of such funds, the total cost of programs and projects in connection with which such funds are used, the amount of that portion of the cost of the program and project supplied by other sources, and such other records as will facilitate an effective audit.

" PROHIBITION OF CONSIDERATION OF FEDERAL AID IN

DETERMINING

STATE AID

" Sec. 174. // 20 USC 2824. // No State shall take into consideration payments under this title in determining the eligibility of any local educational agency in that State for State aid, or the amount of State aid, with respect to free public education of children.

" Part D--Federal Administration of Programs and

Projects

" APPLICABILITY

" Sec. 181. // 20 USC 2831. // In addition to other requirements contained in this part, the requirements of the General Education Provision Act which relate to Federal administration of elementary and secondary education programs shall apply to programs carried out under this title.

" APPROVAL OF APPLICATIONS

" Sec. 182. // 20 USC 2832. // (a) Requirement for Approval.--The Commissioner shall not approve an application under section 162 until he has made specific findings, in writing, that (1) the application and the State monitoring and enforcement plan required under section 171 comply with this title, and (2) that he is satisfied that the assurances in such application and the assurances contained in its general application under section 435 of the General Education Provisions Act (where applicable) will be carried out.

"(b) Hearings.--The Commissioner shall, in accordance with the procedures set forth in section 453 of the General Education Provisions Act, not finally disapprove an application under section 142 or section 162 except after notice and opportunity for a hearing to the State educational agency.

" PROGRAM EVALUATION

" Sec. 183. // 20 USC 2833 // (a) Independent Evaluations.--The Commissioner shall provide for independent evaluations which describe and measure the impact of programs and projects assisted under this title. Such evaluations may be provided by contract or other arrangements, and all such evaluations shall be made by competent and independent persons, and shall include, whenever possible, opinions obtained from program or project participants about the strengths and weaknesses of such programs and projects.

"(b) Evaluation Standards and Schedule.--The Commissioner shall (1) develop and publish standards for evaluation of program or project effectiveness in achieving the objectives of this title, and (2) develop, in consultation with State educational agencies and representatives of local educational agencies, a schedule for conducting evaluations under section 124(g) designed to ensure that evaluations are conducted in representative samples of the local educational agencies in any State each year. Such standards will be developed only after widespread consultation and hearings with practicing State and local agency evaluators, and the Commissioner's standards will reflect the input of these groups.

"(c) Jointly Sponsored Studies.--The Commissioner shall consult with State and local educational agencies in order to provide for jointly sponsored objective evaluation studies of programs and projects assisted under this title within a State.

"(d) Evaluation Models.--The Commissioner shall provide to State educational agencies, models for evaluations of all programs conducted under this title, for their use in carrying out their functions under section 172, which shall include uniform procedures and criteria to be utilized by local educational agencies and State agencies as well as by the State educational agency in the evaluation of such programs. In developing evaluation design models the Commissioner shall consult with State and local evaluators experienced in conducting such evaluations.

"(e) Technical Assistance.--The Commissioner shall provide such technical and other assistance as may be necessary to State educational agencies to enable them to assist local educational agencies and State agencies in the development and application of a systematic evaluation of programs in accordance with the models developed by the Commissioner.

"(f) Specification of Objective Criteria.--The models developed by the Commissioner shall specify objective criteria which shall be utilized in the evaluation of all programs and shall outline techniques (such as longitudinal studies of children involved in such programs) and methodology (such as the use of tests which yield comparable results) for producing data which are comparable on a statewide and nationwide basis.

"(g) Report to Congress.--The Commissioner shall make a report to the respective committees of the Congress having legislative jurisdiction over programs authorized by this title and the respective Committees on Appropriations no later than February 1, 1980, 1982, and 1984 concerning the results of evaluations of programs and projects required under this section, which shall be comprehensive and detailed, as up-to-date as possible, and based to the maximum extent possible on objective measurements, together with other related findings and evaluations and his recommendations with respect to legislation.

"(h) Information Dissemination.--The Commissioner shall also develop a system for the gathering and dissemination of the results of evaluations and for the identification of exemplary programs and projects, or of particularly effective elements of programs and projects, and for the dissemination of information concerning such programs and projects or such elements thereof to State agencies and local educational agencies responsible for the design and conduct of programs and projects under this title, and to the education profession and the general public.

"(i) Maximum Expenditures.--The Commissioner is authorized, out of funds appropriated to carry out this title in any fiscal year, to expend such sums as may be necessary to carry out the provisions of this section, but not to exceed one-half of 1 per centum of the amount appropriated for such programs. In carrying out the provisions of this section, the Commissioner shall place priority on assisting States, local educational agencies, and State agencies to conduct evaluations and shall, only as funds are available after fulfilling that purpose, seek to conduct any national evaluations of the program.

" COMPLAINT RESOLUTION

" Sec. 184. // 20 USC 2834. // The Commissioner shall develop and implement written procedures for receiving and resolving appeals from final resolutions of State educational agencies with respect to complaints concerning violations of this title or of applicable provisions of the General Education Provisions Act // 20 USC 1221. // in connection with programs under this title, for receiving such complaints directly from parent advisory councils, parents, teachers, or other concerned organizations or individuals, and for conducting independent onsite investigations of complaints if the Commissioner deems necessary. Such procedures shall include--,

"(1) specific time limits for resolving the complaint or for completing the review and any necessary independent investigation, which shall not exceed sixty days unless exceptional circumstances exist;

"(2) an opportunity for the complainant, the complainant's representative, the local educational agency and the State educational agency to present evidence;

"(3) a requirement that the complainant, the complainant's representative, the local educational agency, the State educational agency, State agency, the district parent advisory council, and appropriate school-parent advisory councils shall be notified, in writing, within ten days after the resolution of the appeal of the nature of the resolution, the reasons therefor, and the right to an administrative appeal; and

"(4) dissemination of information concerning the procedures.

" AUDITS AND AUDIT RESOLUTION

" Sec. 185. // 20 USC 2835. // (a) Auditing.--The Inspector General of the Department of Health, Education, and Welfare shall make provision for audits of grants made under this title to determine, at a minimum, the fiscal integrity of grant or subgrant financial transactions and reports, and the compliance with applicable statutes, regulations, and terms and conditions of the grant or subgrant.

"(b) Audit Resolution and Repayment.--The Commissioner shall adopt procedures to assure timely and appropriate resolution of audit findings and recommendations arising out of audits provided for in subsection (a). Such procedures shall include timetables for each step of the audit resolution process and an audit appeals process. Where, under such procedures, the audit resolution process requires the repayment of Federal funds which were misspent or misapplied, the Commissioner shall require the repayment of the amount of funds under this title which have been finally determined through the audit resolution process to have been misspent or misapplied. Such repayment may be made from funds derived from non-Federal sources or from Federal funds no accountability for which is required to the Federal Government. Such repayments may be made in either a single payment or in installment payments over a period not to exceed three years.

" WITHHOLDING OF PAYMENTS

" Sec. 186. // 20 USC 2836. // (a) Withholding.--Whenever the Commissioner, after reasonable notice to any State educational agency and an opportunity for a hearing on the record, finds that there has been a failure to comply substantially with any assurance set forth in the application of that State approved under section 142 or 162, the Commissioner shall notify the agency that further payments will not be made to the State under this title (or, in his discretion, that the State educational agency shall reduce or terminate further payments under this title to specified local educational agencies or State agencies affected by the failure) until he is satisfied that there is no longer any such failure to comply. Until he is so satisfied, (1) no further payments shall be made to the State under this title, or (2) payments by the State educational agency under this title shall be limited to local educational agencies and State agencies not affected by the failure, or (3) payments to particular local educational agencies or State agencies shall be reduced, as the case may be. Where partial payments to a local educational agency are continued under this subsection, the expenditure of the payments shall be subject to such conditions as the Commissioner deems appropriate in light of the failure which led to the partial withholding. In the case of a substantial and continuing violation, the Commissioner may suspend payments to such agency, after such agency has been given reasonable notice and opportunity to show cause why such action should not be taken.

"(b) Notice to Public of Commissioner Withholding.--Upon submission to a State of a notice under subsection (a) that the Commissioner is withholding payments, the Commissioner shall take such action as may be necessary to bring his action to the attention of the public within the State.

"(c) Compliance Agreement.--(1) The Commissioner may suspend the initiation or continuation of his withholding action under subsection (a) during any period there is in effect a compliance agreement with the State educational agency under this subsection. Such an agreement shall be deemed to be in effect for the period specified therein, except that if the State educational agency fails to comply with the terms agreed to, such an agreement shall no longer be in effect and subsection (a) shall be fully operative. In implementing such subsection, the Commissioner shall take into account any partial compliance by such agency under such agreement.

"(2) For the purpose of this subsection, the term 'compliance agreement, means an agreement which--,

"(A) sets forth the terms and conditions to which the State or local educational agency or State agency has agreed in order to comply with the requirements of this title or the General Education Provisions Act and regulations promulgated thereunder;

"(B) addresses all the matters that formed the basis for the initiation of the withholding action by the Commissioner; and

"(C) may consist of a series of agreements that in the aggregate dispose of all such matters.

"(3) In any case in which a State educational agency desires to enter into a compliance agreement, but alleges that full compliance with the requirements of this title is genuinely not feasible until a further date, the Commissioner shall hold a hearing at which that agency shall have the burden of demonstrating that immediate compliance is not feasible. The Commissioner shall provide an opportunity for parents, their representatives, and other interested parties to participate in that hearing. If the Commissioner determines, on the basis of all the evidence presented to him, that immediate compliance is genuinely not feasible, he shall make written findings to that effect before entering into such a compliance agreement with that State educational agency. A compliance agreement under this subsection shall not be exempt from disclosure under any provision of section 552 of title 5, United States Code. Within fifteen days after the execution of any compliance agreement under this subsection, the Commissioner shall send a copy thereof to each organization or person who filed a complaint with respect to any failure to comply which is covered by that agreement.

" POLICY MANUAL

" Sec. 187. // 20 USC 2837. // (a) Scope and Purpose.--The Commissioner shall, not later than six months after the publication of final regulations with respect to the amendments to this title made by the Education Amendments of 1978, prepare and distribute to State educational agencies, State agencies operating programs for neglected and delinquent and handicapped children, local educational agencies, and district-wide advisory councils, and shall make available to other interested individuals, organizations, and agencies, a policy manual for this title to--,

"(1) assist such agencies in (A) preparing applications for program funds under this title, (B) meeting the applicable program requirements under this title, and (C) enhancing the quality, increasing the depth, or broadening the scope of activities for programs under this title;

"(2) assist State educational agencies in achieving proper and efficient administration of programs funded under this title;

"(3) assist advisory councils established under section 125(a) in advising the local educational agencies in the planning for, and implementation and evaluation of, programs and projects under this title; and

"(4) insure that officers and employees of the Department of Health, Education, and Welfare, including, but not limited to, officers and employees of the Commissioner and officers and employees of such Department charged with auditing programs carried on under this title, uniformly interpret, apply, and enforce requirements under this title throughout the United States.

"(b) Contents of Policy Manual.--The policy manual shall, with respect to programs carried on under this title, contain descriptions, statements, procedural and substantive rules, opinions, policy statements and interpretations and indices to and amendments of the foregoing, and in particular, whether or not such items are required under section 552 of title 5, United States Code to be published or made available, the manual shall include (but not be limited to)--,

"(1) a statement of the requirements applicable to the programs carried on under this title including such requirements contained in this title, the General Education Provisions Act,

// 20 USC 1221. //

other applicable statutes, and regulations issued under the authority of such statutes;

"(2) an explanation of the purpose of each requirement, including appropriate references to legislative history;

"(3) an explanation of the interrelationships between the applicable requirements;

"(4) a statement of the procedures to be followed by the Commissioner and the Secretary with respect to proper and efficient performance of their administrative responsibilities, including but not limited to (A) approving State applications or State plans, (B) distributing grants to appropriate agencies, (C) resolving problems discovered during monitoring visits, (D) resolving financial exceptions disclosed during audits, (E) collecting outstanding claims arising out of activities under this title, (F) resolving complaints, (G) responding to requests for advisory opinions interpreting and applying standards contained in applicable statutes and regulations to the public, (H) identifying and publicizing exemplary programs, and (I) making public audit determinations of the Commissioner or of any officer or panel authorized by the Commissioner to make such determinations;

"(5) summaries of (A) advisory opinions referred to in paragraph (4)(G) of this section and (B) final audit determinations referred to in paragraph (4)(I), including examples of actual applications of the legal requirements of applicable statutes and regulations;

"(6) model forms and instructions developed by the Commissioner for use by State and local educational agencies, at their discretion, including, but not limited to, application forms, application review checklists, and instruments for monitoring programs operated by applicant agencies;

"(7) summaries of appropriate court decisions concerning programs under this title;

"(8) examples of methods of distributing State and local funds which do and do not satisfy the applicable requirements under this title; and

"(9) model forms, policies, and procedures developed by State educational agencies.

" ENFORCEMENT REPORT

" Sec. 188. // 20 USC 2838. // The Commissioner shall, in conjunction with the report required by section 183(g), submit to the Congress a report concerning the enforcement of this title. The report submitted in 1980, 1982, and 1984 shall contain--,

"(1) an analysis, for each State which has an application approved for that year under section 182, of the extent to which the assurances, policies, and procedures of that State submitted as part of that application satisfy the requirements of this title,

"(2) a description for each such State of the manner in which monitoring reports of the Commissioner were taken into consideration in the approval of such applications,

"(3) a description, with respect to appropriate States, of the manner in which unresolved audit and program monitoring findings were taken into consideration in the approval of such applications,

"(4) a description for each such State of the manner in which the annual evaluation report of that State was taken into consideration in the approval of such applications,

"(5) a summary of the findings of the Commissioner's on-site monitoring visits, of the actions taken by State educational agencies to correct problems identified in each report based on such visits, and of the number, type, and location of problems which have been so identified but which have not been corrected as of the date of the submission of the annual enforcement report under this section,

"(6) with respect to audits conducted under this title, (A) the number and type of audits conducted in the year preceding the date of submission of the report, (B) the identity of each State or local educational agency audited during that year, (C) the resolution status of each outstanding audit, including the dates on which each step of the resolution process with respect to such outstanding audit was completed, the schedule for completion of such process, the amount of the financial exceptions noted in final audit reports and in letters of final determination, and an explanation of any differences in such amounts as noted in draft audit reports, final audit reports, and letters of final determination, (D) the number and identity of any States which did not appeal to the audit hearing board for this title with respect to audits conducted during that year and the status of recoupment activities for each such State, (E) the number and identity of States which appealed to such board during that year and the status of each active appeal, (F) the number and identity of States which have completed such appeals during that year and the status of recoupment activities with respect thereto, (G) the number and type of any cases referred to the Attorney General during that year for collection of misspent funds, (H) the amount of any funds recovered during that year as a result of such audit resolution process, (I) an analysis of the type of violations identified in final audit reports, letters of final determination, and final decisions of the audit hearing board for this title and of the Commissioner on appeal from the decisions of such board, (J) a summary of audit followup actions conducted during that year for the purpose of determining that deficiencies which led to financial audit exceptions or audit findings of procedural noncompliance have been corrected, (K) a description of audits planned for the year succeeding the date of the submission of the report, and (L) recommendations for improvement of the audit resolution process, and

"(7) with respect to complaints made to the Commissioner concerning programs under this title during the year preceding the date of submission of the report under this section, the number and type of complaints, the identity of the State and local educational agencies, the action taken by the Commissioner to resolve the complaints, and the number and type of complaints which remain unresolved as of the date of such submission.

" Part E--Payments " PAYMENT METHODS

" Sec. 191. // 20 USC 2841. // The Commissioner shall, from time to time pay to each State, in advance or otherwise, the amount which it and the local educational agencies of that State are eligible to receive under this title. Such payments shall take into account the extent (if any) to which any previous payment to such State educational agency under this title (whether or not in the same fiscal year) was greater or less than the amount which should have been paid to it.

" AMOUNT OF PAYMENTS TO LOCAL EDUCATIONAL AGENCIES

" Sec. 192. // 20 USC 2842. // From the funds paid to it pursuant to section 191 each State educational agency shall distribute to each local educational agency of the State which is eligible to receive a grant under this title and which has submitted an application approved pursuant to section 121 the amount for which such application has been approved, except that the amount shall not exceed the amount determined for that agency under this title.

" ADJUSTMENTS WHERE NECESSITATED BY APPROPRIATIONS

" Sec. 193. // 20 USC 2843. // (a) Adjustment Allocation.--If the sums appropriated for any fiscal year for making the payments provided in this title other than amounts appropriated for subpart 2 of part A are not sufficient to pay in full the total amounts which all local and State educational agencies are entitled to receive under this title for such year, the amount available for each grant to a State agency eligible for a grant under subpart 1,2, or 3 of part B shall be equal to the total amount of the grant as computed under each such subpart. If the remainder of such sums available after the application of the preceding sentence is not sufficient to pay in full the total amounts which all local educational agencies are entitled to receive under subpart 1 of part A of this title for such year, the allocations to such agencies shall, subject to adjustments under the next sentence, be ratably reduced to the extent necessary to bring the aggregate of such allocations within the limits of the amount so appropriated. The allocation of a local educational agency which would be reduced under the preceding sentence to less than 85 per centum of its allocation under subpart 1 of part A for the preceding fiscal year, shall be increased to such amount, the total of the increases thereby required being derived by proportionately reducing the allocations of the remaining local educational agencies, under the preceding sentence, but with such adjustments as may be necessary to prevent the allocation to any remaining local educational agency from being thereby reduced to less than 85 per centum of its allocation for such year.

"(b) Additional Funds Allocation.--In case additional funds become available for making payments under this title for that year, allocations that were reduced pursuant to subsection (a) shall be increased on the same basis that they were reduced. In order to permit the most effective use of all appropriations made to carry out this title, the Commissioner may set dates by which (1) State educational agencies must certify to him the amounts for which the applications of educational agencies have been or will be approved by the State and (2) State educational agencies referred to in subpart 1 of part B must file applications. If the maximum grant a local educational agency would receive (after any ratable reduction which may have been required under the first sentence of subsection (a) of this section) is more than an amount which the State educational agency determines, in accordance with regulations prescribed by the Commissioner, such agency will use, the excess amount shall be made available first to educational agencies in that State. Determinations of the educational agencies to which such excess amounts shall be made available shall be made by the State educational agency in furtherance of the purposes of this title in accordance with criteria prescribed by the Commissioner which are designed to assure that such excess amounts will be made available to other eligible educational agencies with the greatest need, for the purpose of, where appropriate, redressing inequities inherent in, or mitigating hardships caused by, the application of the provisions of section 111(a) as a result of such factors as population shifts and changing economic circumstances. In the event excess amounts remain after carrying out the preceding two sentences of this section, such excess amounts shall be distributed among the other States as the Commissioner shall prescribe for use by local educational agencies in such States for the purposes of this title in such manner as the respective State educational agencies shall prescribe.

" PAYMENTS FOR STATE ADMINISTRATION

" Sec. 194. // 20 USC 2844. // (a) Except as provided in subsection (b), the Commissioner is authorized to pay to each State amounts equal to the amounts expended by it for the proper and efficient performance of its duties under this title, except that the total of such payments in any fiscal year shall not exceed--,

"(1) 1.5 per centum of the amount allocated to the State and its local educational agencies and to other State agencies as determined for that year under this title; or

"(2) $225,000, or $50,000 in the case of Guam, American Samoa, the Virgin Islands, the Northern Mariana Islands, or the Trust Territory of the Pacific Islands,

whichever is the greater, except that any amount paid by reason of clause (1) or (2) in excess of the limitations on such payments in effect prior to the effective date of the Education Amendments of 1978 shall be used exclusively for monitoring, audit resolution, enforcement, or similar compliance activities and shall supplement and not supplant funds otherwise available from non-Federal sources for such purposes.

"(b) The provisions of this section shall apply in any fiscal year in which the provisions of section 510(b)(2) are not met.

" Part F--General Provisions " JUDICIAL REVIEW

" Sec. 195. // 20 USC 2851. // (a) Filing Appeals.--If any State is dissatisfied with the Commissioner's final action with respect to the approval of its application submitted under subpart 1 or part B or section 162 or with his final action under section 185 or 186, such State may, within sixty days after notice of such action, file with the United States court of appeals for the circuit in which such State is located a petition for review of that action. A copy of the petition shall be forthwith transmitted by the clerk of the court to the Commissioner. The Commissioner 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.

"(b) Basis of Review.--The findings of fact by the Commissioner, if supported by substantial 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.

"(c) Judicial Appeals.--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. The judgment of the court shall be 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.

" NATIONAL ADVISORY COUNCIL

" Sec. 196. // 20 USC 2852. // (a) Council Established.--There shall be a National Advisory Council on the Education of Disadvantaged Children (hereinafter in this section referred to as the ' National Council') consisting of fifteen members appointed by the President, without regard to the provisions of title 5, United States Code, governing appointment in the competitive service, for terms of three years, except that (1) in the case of initial members, five shall be appointed for terms of one year each and five shall be appointed for terms of two years each, and (2) appointments to fill vacancies shall be only for such terms as remain unexpired. The National Council shall meet at the call of the Chairman.

"(b) Functions.--The National Council shall review and evaluate the administration and operation of this title, including its effectiveness in improving the educational attainment of educationally deprived children, including the effectiveness of programs to meet their occupational and career needs, and make recommendations for the improvement of this title and its administration and operations. These recommendations shall take into consideration experience gained under this and other Federal educational programs for disadvantaged children and, to the extent appropriate, experience gained under other public and private educational programs for disadvantaged children.

"(c) Reports.--The National Council shall make such reports of its activities, findings, and recommendations (including recommendations for changes in the provisions of this title) as it may deem appropriate and shall make an annual report to the President and the Congress not later than March 31 of each calendar year. Such annual report shall include a report specifically on which of the various compensatory education programs funded in whole or in part under the provisions of this title, and of other public and private educational programs for educationally deprived children, hold the highest promise for raising the educational attainment of these educationally deprived children. The President is requested to transmit to the Congress such comments and recommendations as he may have with respect to such report. Subject to section 448(b) of the General Educational Provisions Act, // 20 USC 1233g. // the National Council shall continue to exist until October 1, 1984.

" LIMITATION ON GRANT TO PUERTO RICO

" Sec. 197. // 20 USC 2853. // Notwithstanding the provisions of part A or of subpart 1, 2, or 3 of part B of this title, the amount paid to the Commonwealth of Puerto Rico under this title for any fiscal year shall not exceed 150 per centum of the amount received by Puerto Rico under this title in the preceding fiscal year. Any excess over such amount shall be used to ratably increase the allocations under subpart 1 of part A of the other local educational agencies whose allocations do not exceed the maximum amount for which they are eligible under section 111.

" DEFINITIONS

" Sec. 198. // 20 USC 2854 // (a) Except as otherwise provided, for purposes of this title:

"(1) The term 'average daily attendance' means attendance determined in accordance with State law, except that notwithstanding any other provision of this title, where the local educational agency of the school district in which any child resides makes or contracts to make a tuition payment for the free public education of such child in a school situated in another school district, for purposes of this title the attendance of such child at such school shall be held and considered (A) to be in attendance at a school of the local educational agency so making or contracting to make such tuition payment, and (B) not to be in attendance at a school of the local educational agency receiving such tuition payment or entitled to receive such payment under the contract.

"(2) The term 'average per pupil expenditure' means in the case of a State or the United States, the aggregate current expenditures, during the third fiscal year preceding the fiscal year for which the computation is made (or if satisfactory data for that year are not available at the time of computation, then during the most recent preceding fiscal year for which satisfactory data are available), of all local educational agencies in the State, or in the United States (which for the purposes of this subsection means the fifty States, and the District of Columbia), as the case may be, plus any direct current expenditures by the State for operation of such agencies (without regard to the source of funds from which either of such expenditures are made), divided by the aggregate number of children in average daily attendance to whom such agencies provided free public education during such preceding year.

"(3) The term ' Commissioner' means the United States Commissioner of Education.

"(4) The term 'construction' includes the preparation of drawings and specifications for school facilities; erecting, building, acquiring, altering, remodeling, improving, or extending school facilities; and the inspection and supervision of the construction of school facilities.

"(5) The term 'county' means those divisions of a State utilized by the Secretary of Commerce in compiling and reporting data regarding counties.

"(6) The term 'current expenditures' means expenditures for free public education, including expenditures for administration, instruction, attendance, and health services, pupil transportation services, operation and maintenance of plant, fixed charges, and net expenditures to cover deficits for food services and student body activities, but not including expenditures for community services, capital outlay, and debt service, or any expenditures made from funds granted under this title or parts B and C of title IV of this Act.

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

"(8) The term 'equipment' includes machinery, utilities, and building equipment and any necessary enclosure or structures to house them, and includes all other items necessary for the functioning of a particular facility as a facility for the provision of educational services, including items such as instructional equipment and necessary furniture, printed, published, and audio-visual instructional materials, and books, periodicals, documents, and other related materials.

"(9) The term 'free public education' means education which is provided at public expense, under public supervision and direction, and without tuition charge, and which is provided as elementary or secondary school education in the applicable State, except that such term does not include any education provided beyond grade 12.

"(10) 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 district, 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 includes any other public institution or agency having administrative control and direction of a public elementary or secondary school.

"(11) The term 'parent' includes a legal guardian or other person standing in loco parentis.

"(12) The term 'project area' means a school attendance area having a high concentration of children from low-income families which, without regard to the locality of the project itself, is designated as an area from which children are to be selected to participate in a program or project assisted under this title.

"(13) The term 'school attendance area' means in relation to a particular school, the geographical area in which the children who are normally served by that school reside.

"(14) The term 'school facilities' means classrooms and related facilities (including initial equipment) for free public education and interests in land (including site, grading, and improvements) on which such facilities are constructed, except that such term does not include those gymnasiums and similar facilities intended primarily for exhibitions for which admission is to be charged to the general public.

"(15) The term ' Secretary' means the Secretary of Health, Education, and Welfare.

"(16) The term ' State' means a State, Puerto Rico, Guam, the District of Columbia, American Samoa, the Virgin Islands, the Northern Mariana Islands, or the Trust Territory of the Pacific Islands.

"(17) The term ' State educational agency' means the officer or agency primarily responsible for the State supervision of public elementary and secondary schools.".

(b) Section 403 of the Act of September 30, 1950 (Public Law 874, Eighty-first Congress), // 20 USC 244. // is amended--,

(1) by striking out, "except as used in title II", where it appears in paragraph (2);

(2) by striking out, ",except that for purposes of title II such term does not include any education provided beyond grade 12", where it appears in paragraph (4);

(3) by striking out, "title II of this act or title II or III" where it appears in paragraph (5), and inserting "title I, II, or III";

(4) by striking out, "(A)" where it appears in paragraph (6) and by striking out subparagraph (B) of such paragraph;

(5) by striking out ",and for purposes of title II, such term includes the Trust Territory of the Pacific Islands" in paragraph (8); and

(6) by striking out paragraphs (15), (16), and (17).

(c) Title II of the Act of September 30, 1950 (Public Law 874, Eighty-first Congress), // 20 USC 241a-241c, 241e-241h, 241j-241m. // is repealed.

(d) Section 101(a)(10) of the Education Amendments of 1974 is amended by striking out " Part A" and inserting in lieu thereof "subpart 1 of part A, and part B," and by striking out "such part A" and inserting in lieu thereof "such subpart or part".

STUDY OF ALTERNATIVES FOR DEMONSTRATING COMPARABILITY

Sec. 102. // 20 USC 2701. // (a) The Commissioner shall, not later than September 30, 1981, make a study of the feasibility and desirability of alternative criteria for demonstrating the comparability of services provided with State and local funds in each project area (as defined in section 198(12) of the Elementary and Secondary Education Act of 1965) to those provided outside such areas which ensure, at least to the same extent as the criteria in existing regulations published in the Federal Register (41 F.R. 42894 et seq., September 28, 1976), // 45 CFR 116, 116a. // that children in each school serving such a project area receive comparable services paid for out of State and local funds.

(b) The Commissioner may select all the local educational agencies in one State and not more than twenty such agencies in other States which are reasonably representative of the various geographical areas of the Nation for participation in the study provided for in this section. For purposes of the study, the Commissioner, without regard to section 431 of the General Education Provisions Act, // 20 USC 1232. // may permit the use of substitute criteria meeting the requirements of subsection (c) in place of criteria contained in existing regulations, to be applicable only for the school years 1979-1980 and 1980-1981 and only to local educational agencies selected to participate in the study.

(c) Local educational agencies selected for participation in the study provided for in this section shall demonstrate comparability through the use of alternative criteria, which, at a minimum, meet the conditions of the following paragraphs:

(1) Such criteria are approved by the districtwide advisory council established under section 125 of the Elementary and Secondary Education Act of 1965.

(2) Based on such criteria, each school serving such a project area receives services comparable to those services provided with State and local funds in schools not receiving assistance under this title.

(3) Services measured by such criteria shall vary by not more than 5 per centum between each school serving such a project area and other schools of the agency.

(4) Compliance with such criteria shall be determined on the basis of services actually provided during the current school year.

(5) If expenditures are used in the criteria, only expenditures for instructional services shall be included and for this purpose "instructional services" means current expenditures for free public education other than expenditures for attendance and health services, pupil transportation services, operation and maintenance of plant, fixed charges, and net expenditures to cover deficits for food services and student body activities.

(6) In all other respects, such criteria shall be consistent with the regulations of the Commissioner pertaining to comparability of services.

(d) In order to provide a basis for comparison, local educational agencies participating in the study under this section shall continue to make reports under existing criteria for comparability of services.

TITLE II-- ESTABLISHMENT OF A NEW TITLE II OF THE ELEMENTARY AND SECONDARY EDUCATION ACT OF 1965 BASIC SKILLS

Sec. 201. Title II of the Elementary and Secondary Education Act of 1965 (hereinafter in titles II through IX of this Act referred to as "the Act") is amended to read as follows:

" TITLE II-- BASIC SKILLS IMPROVEMENT " Part A--National Program " PURPOSE

" Sec. 201. // 20 USC 2881. // The purpose of this part is--,

"(1) to assist Federal, State, and local educational agencies to coordinate the utilization of all available resources for elementary and secondary education to improve instruction so that all children are able to master the basic skills of reading, mathematics, and effective communication, both written and oral;

"(2) to encourage States to develop comprehensive and systematic plans for improving achievement in the basic skills;

"(3) to provide financial assistance to State and local educational agencies for the development of programs in the basic skills;

"(4) to develop means by which parents working with the schools can contribute to improving the educational achievement of their children;

"(5) to encourage the involvement of the private sector in the delivery to children, youths, and adults of educational services and materials that will improve achievement in the basic skills; and

"(6) to expand the use of television and other technology in the delivery of instructional programs aimed at improving achievement in the basic skills.

" APPLICATIONS

" Sec. 202. // 20 USC 2882. // (a) The Secretary may make a grant or award a contract under this part only upon the submission of an application by an eligible entity at the time and in the form prescribed by the Secretary. Each such application by a State or local educational agency shall provide assurances that--,

"(1) in designing the proposal for which application is made, the needs of children in nonprofit private elementary and secondary schools have been taken into account through consultation with private school officials; and, to the maximum extent feasible, and consistent with the number of such children in the area to be served who have the educational needs the proposal is intended to address, those children will be provided an opportunity to participate in the proposed activity on a basis comparable to that provided for public school children;

"(2) procedures have been developed to evaluate the effectiveness of the proposed activity in achieving the purposes of this title; and

"(3) procedures have been developed for incorporating successful practices developed with assistance under this title into the regular instructional program.

"(b) No grant or contract may be awarded to a local educational agency under this part unless the appropriate State educational agency has been provided an opportunity for at least thirty days to comment on the application.

" ACCEPTANCE OF GIFTS

" Sec. 203. // 20 USC 2883. // Notwithstanding the provisions of section 408(a)(3) of the General Education Provisions Act, // 20 USC 1221e-3. // the Secretary may accept, on behalf of the United States, conditional or unconditional gifts or donations of services, money, or property, made for any activities authorized to be carried out under this title.

" GRANTS AND CONTRACTS

" Sec. 204. // 20 USC 2884. // (a) In order to achieve the purposes of this part, the Secretary is authorized, during the period of October 1, 1979, through September 30, 1983, to make grants to, and enter into contracts with, State and local educational agencies, and other public and private agencies, organizations, and institutions to carry out planning, research, development, demonstrations (including training of leadership personnel, evaluation, and dissemination, as described in sections 205 through 209), except that no grant may be made under this part to other than a public or nonprofit private agency, organization, or institution.

"(b) The Secretary may provide to such agencies, organizations, and institutions, either directly or through grants or contracts, technical assistance related to the purposes of this part.

" INSTRUCTION IN BASIC SKILLS

" Sec. 205. // 20 USC 2885. // The Secretary shall provide assistance, in accordance with section 204, for activities designed to demonstrate improved delivery of instructional services in the areas of reading, mathematics, and oral and written communication, including--,

"(1) assessment of schoolwide needs to identify the instructional needs of children in basic skills;

"(2) establishing learning goals and objectives for each school;

"(3) the development of comprehensive programs to address the needs through the use of resources available under this part and other resources from local, State, and Federal programs;

"(4) the demonstration of techniques for coordinating the efforts of local agencies, organizations, and institutions, to improve achievement in basic skills;

"(5) preservice training programs for teaching personnel including teacher aides and other ancillary educational personnel, and in-service training and development programs, designed to enable such personnel to improve their ability to teach basic skills; and

"(6) active involvement of teachers, teacher aides, administrators, and other educational personnel to improve their ability to utilize available resources to carry out the purposes of this part.

" PARENTAL PARTICIPATION IN BASIC SKILLS INSTRUCTION

" Sec. 206. // 20 USC 2886. // The Secretary, in accordance with section 204, shall support activities designed to enlist the assistance of parents and volunteers working with schools to improve the skills of children in reading, mathematics, and oral and written communication. The activities which may be supported under this section include--,

"(1) the development and dissemination of materials that, with appropriate training, parents may use in the home to improve their children's performance in those skills; and

"(2) voluntary training activities for parents to encourage them to assist their children in developing basic skills.

" USE OF TECHNOLOGY IN BASIC SKILLS INSTRUCTION

" Sec. 207. // 20 USC 2887. // The Secretary, in accordance with section 204, shall support development and demonstration activities related to the improved use of television and other technology to contribute to the instruction of children in reading, mathematics, and written and oral communication. The activities authorized under this section shall be designed to expand the variety and improve the quality of instructional efforts involving the use of technology. The activities which may be supported under this section include--,

"(1) the development and acquisition of educational programing, including audio and video materials distributed through broadcast, cable, tape, film, cassettes, or other means that provide instruction in basic skills in an effective manner;

"(2) the development and acquisition of instructional materials that supplement educational programing described in clause (1) of this section in order to improve its effectiveness in the school, the home, and other learning environments;

"(3) the development and acquisition of materials to assist teachers in relating such programing, or similar public or commercial programs of educational value, to instruction in the classroom;

"(4) the training of teachers, administrators, and other instructional personnel in the use of educational technology;

"(5) assistance to teachers, administrators, and other instructional personnel for experimentation with new technological approaches to instruction; and

"(6) distribution of information about, and promotion of the use of such programing and technology in the classroom and other learning environments.

" INVOLVEMENT OF EDUCATIONAL AGENCIES AND PRIVATE

ORGANIZATIONS

" Sec. 208. // 20 USC 2888. // (a) The Secretary shall provide assistance and information to State and local educational agencies, institutions of higher education, and private agencies, organizations, and institutions (such as labor unions, volunteer organizations, and business associations) to support the efforts of such agencies, organizations, and institutions to stimulate children, youths, and adults to improve their achievement in basic skills. The activities which may be supported under this section include--,

"(1) programs to motivate children to improve their reading skills through the distribution to children of books;

"(2) instructional programs and voluntary tutorial programs to provide individual assistance outside of the school to children, youths, and adults with instruction needs;

"(3) community efforts to encourage individuals to improve their performance in basic skills; and

"(4) the establishment of programs for lending or selling books to children, youths, and adults.

"(b) Activities supported under subsection (a)(2) may be known as reading academies.

" COLLECTION AND DISSEMINATION OF INFORMATION

RELATING TO BASIC

SKILLS PROGRAMS

" Sec. 209. // 20 USC 2889. // The Secretary is authorized to use funds appropriated under this part to collect and analyze information concerning the results of activities carried out under this title and under part C of title IV, including information on the activities which have been successful in improving the achievement of students in the basic skills. Such funds may also be used to disseminate that information to State and local educational agencies and other interested public and private agencies organizations,and institutions.

" COORDINATION

" Sec. 210. // 20 USC 2890. // The Secretary shall establish effective and efficient procedures for coordination between the programs assisted under this part and other parts of this title, with programs assisted under title I and title IV of this Act, title V of the Economic Opportunity Act of 1964, title V of the Higher Education Act of 1965, and other such Federal programs that support efforts to improve the basic skills of children, youth and adults.

" Part B--Basic Skills Improvement Program " STATEMENT OF PURPOSE

" Sec. 221. // 20 USC 2901. // It is the purpose of this part to provide financial assistance to States to enable them--,

"(1) to develop comprehensive and systematic statewide plans for improving achievement in the basic skills, to coordinate available resources for elementary and secondary education, and to provide financial assistance to improve the instruction so that all children are able to master the basic skills of reading, mathematics, and effective communication, both written and oral;

"(2) to provide assistance to local agencies in the development and implementation of comprehensive programs to improve basic skills proficiency and instruction in the elementary and secondary schools;

"(3) to develop means by which parents working with the schools can contribute to improving the educational achievement of their children;

"(4) to provide State leadership in the planning, execution, and evaluation of basic skills instructional programs in elementary and secondary schools; and

"(5) to arrange for and assist in the training of educational staff, including special reading and mathematics personnel and specialists needed in programs assisted under this part.

" AGREEMENTS WITH STATE EDUCATIONAL AGENCIES

" Sec. 222. // 20 USC 2902. // (a) Any State which desires to receive grants under this part shall, through its State educational agency, enter into an agreement with the Secretary, in such detail as the Secretary deems necessary, which--,

"(1) designates the State educational agency as the agency for administration of the agreement;

"(2) provides for a process of active and continuing consultation with the State educational agency, by persons broadly representative of the educational resources of the State and of the general public, including persons representative of--,

"(A) public and private nonprofit elementary and

secondary

schoolchildren.

"(B) institutions of higher education, "(C) parents of elementary and secondary schoolchildren, "(D) areas of professional competence relating to basic skills instruction in reading and mathematics, "(E) classroom teachers in the State, and "(F) local administrators including principals and superintendents,

to advise the State educational agency on the planning, development, implementation, and evaluation of a comprehensive State program for improving basic skills;

"(3) describes the basic instructional programs in elementary and secondary schools for which assistance is sought under this part and procedures for giving priority to basic skills programs which are already receiving Federal financial assistance and show reasonable promise of achieving success;

"(4) sets forth criteria for achieving an equitable distribution of that part of the assistance under this part which is made available to local educational agencies pursuant to the second sentence of subsection (b) of this section, which criteria shall--,

(A) take into account the size of the population to be served, beginning with preschool, the relative needs of

pupils

in different population groups within the State for

the program

authorized by this part, and the financial ability of

the

local educational agency serving such pupils, and

"(B) assure that such distribution shall include grants

to

local educational agencies having high concentrations

of children

with low reading or mathematics proficiency;

"(5) provides for the coordination and evaluation of programs assisted under this part;

"(6) provides for technical assistance and support services for local educational agencies participating in the program;

"(7) makes provision for the dissemination to the educational community and the general public of information about the objectives of the program and results achieved in the course of its implementation;

"(8) provides for making a report, at least once every three years, and such other reports, in such form and containing such information, as the Secretary may reasonably require to evaluate the effectiveness of the program and to carry out his other functions under this part;

"(9) provides that not more than 5 per centum of the amount allotted to the State under this part for any fiscal year may be retained by the State educational agency for purposes of administering the agreement;

"(10) provides that programs assisted under this part shall be of sufficient size, scope, and quality so as to give reasonable promise of substantial progress toward achieving the purposes of this part; and

"(11) provides that Federal funds expended under the program will supplement the level of State and local funds that would be available for such programs in the absence of Federal assistance, and in no event will supplant such State and local funds.

"(b) Grants for projects to carry out the purposes of this part may be made to local educational agencies (subject to the provision of subsection (c) relating to the participation of private elementary and secondary school pupils), institutions of higher education, and other public and nonprofit agencies and institutions. Not less than 70 per centum of the amount allotted to a State under this part for any fiscal year shall be made available by the State for grants to local educational agencies within that State.

"(c) The provisions of section 130(a)(1) of this Act relating to the participation of children enrolled in private elementary and secondary schools shall apply to programs assisted under this part.

"(d) Each application by a local educational agency within a State for assistance under this part shall be developed in conjunction with teachers and building administrators in such district. The application shall set forth a systematic strategy for improving basic skills instruction in the local district which provides for the planning and implementation of comprehensive basic skills instructional programs at the school building level. The school level programs shall address the needs of all students and shall utilize, in a coordinated fashion, resources available from all Federal, State, and local sources. Teachers, administrators, and parents shall be involved in the development of the comprehensive school level programs. Such programs shall include--,

"(1) diagnostic assessment to identify the needs of all of the children in the school;

"(2) the establishment of learning goals and objectives for the school;

"(3) to the extent practicable, preservice training and inservice training and development programs for teaching and administrative personnel, including teacher-aides and other ancillary educational personnel, designed to enable such personnel to improve their ability to teach students the basic skills;

"(4) activities designed to enlist the support of parents to aid in the instruction of their children at home and school;

"(5) procedures for the evaluation of the effectiveness of the program, including a program of periodic testing of basic skills achievement and the publication of test results on basic skills performance by grade level and by school, without identification of performance of individual children;

"(6) assessment, evaluation, and collection of information on individual children by teachers during each year of a pre-elementary program, to be made available for teachers in the subsequent year, in order that continuity for the individual child not be lost. Such information shall also be available to parents or guardians of the individual children.

"(e) In addition to the grants authorized in subsection (d), the State educational agency may also make grants to support activities designed to enlist the assistance of parents working with schools to improve the skills of their children in reading, mathematics, and oral and written communication. Activities that may be supported under this section include--,

"(1) the development and dissemination of materials that parents may use in the home to improve their children's performance in those skills;

"(2) the encouragement of closer contacts between parents and teachers to improve the coordination between learning experiences in the home and those in school;

"(3) planning for, developing and improving centers accessible to parents to provide materials and professional guidance, including volunteers, for parents who desire to assist in the instruction of their children; and

"(4) the demonstration of training programs for parents who desire to develop new skills to complement the instruction their children receive in school.

"(f) The Secretary shall enter into an agreement which complies with the provisions of subsection (a) with any State which desires to enter into such an agreement.

" DISTRIBUTION OF FUNDS

" Sec. 223. // 20 USC 2903. // The Secretary shall distribute grants under the provisions of this part so as to assure that each State having an agreement under section 222 will receive not less than the amount which bears the same ratio to the total amount available for this part for a fiscal year as the number of school age children (aged five through seventeen inclusive) in that State bears to the number of such children in all States, except that any State having an agreement shall not receive less than $50,000 in any such fiscal year.

" STATE LEADERSHIP PROGRAM

" Sec. 224. // 20 USC 2904. // The Secretary is authorized to enter into agreement with State educational agencies for the carrying out by such agencies of leadership and training activities designed to prepare personnel throughout the State to implement programs which have been demonstrated in that State or other States to be effective in overcoming deficiencies in the basic skills, and to develop and implement statewide plans for improving the skills of children, youth, and adults in reading, mathematics, and oral and written communication. The activities authorized by this section shall be limited to--,

"(1) the development of a comprehensive statewide program providing for the coordination of all Federal and State programs that provide instruction in basic skills;

"(2) planning activities that involve local administrators, teachers, and parents in the development of strategies to improve instruction in basic skills;

"(3) statewide assessments of need relating to basic skills, including the needs of both students and instructional personnel;

"(4) in-service training programs for local administrators, instructional personnel, and other staff members involved in instruction in basic skills; and

"(5) the provision of technical assistance and the dissemination of information relating to basic skills instruction to local educational agencies and other organizations and institutions involved in programs of instruction in basic skills.

" Part C--Special Programs for Improving Basic Skills " INEXPENSIVE BOOK DISTRIBUTION PROGRAM FOR READING

MOTIVATION

" Sec. 231. // 20 USC 2911. // (a) The Commissioner is authorized (1) to enter into a contract with a private nonprofit group or public agency (hereinafter in this section referred to as the 'contractor'), which has as its primary purpose the motivation of children to learn to read, to support and promote the establishment of reading motivational programs which include the distribution of inexpensive books to students and (2) to pay the Federal share of the cost of such programs.

"(b) The contract shall provide that--,

"(1) the contractor will enter into subcontracts with local private nonprofit groups or organizations or with public agencies (hereinafter referred to as 'subcontractors') under which the subcontractors will agree to establish, operate, and provide the non-Federal share of the cost of reading motivational programs which include the distribution of books by gift or loan, to pre-elementary, elementary or secondary schoolchildren;

"(2) funds made available by the Commissioner to a contractor pursuant to any contract entered into under this section will be used to pay the Federal share of the cost of establishing and operating reading motivational programs as provided in paragraph (1); and

"(3) the contractor will meet such other conditions and standards as the Commissioner determines to be necessary to assure the effectiveness of the programs authorized by this section and will provide technical assistance in furtherance of the purposes of this section.

"(c) The Commissioner shall make no payment of the Federal share of the cost of acquiring and distributing books pursuant to a contract authorized by this section unless he determines that the contractor or the subcontractor, as the case may be, has made arrangements with book publishers or distributors to obtain books at discounts at least as favorable as discounts that are customarily given by such publisher or distributor for book purchases made under similar