[105th Congress Public Law 332]
[From the U.S. Government Printing Office]


<DOC>
[DOCID: f:publ332.105]


[[Page 3075]]

 CARL D. PERKINS VOCATIONAL AND APPLIED TECHNOLOGY EDUCATION AMENDEMTNS 
                                 OF 1998

[[Page 112 STAT. 3076]]

Public Law 105-332
105th Congress

                                 An Act


 
To amend the Carl D. Perkins Vocational and Applied Technology Education 
              Act. <<NOTE: Oct. 31, 1998 -  [H.R. 1853]>> 

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress <<NOTE: Carl D. Perkins Vocational 
and Applied Technology Education Amendments of 1998.>> assembled,

SECTION 1. SHORT TITLE; AMENDMENT.

    (a) Short <<NOTE: 20 USC 2301 note.>> Title.--This Act may be cited 
as the ``Carl D. Perkins Vocational and Applied Technology Education 
Amendments of 1998''.

    (b) Amendment.--The Carl D. Perkins Vocational and Applied 
Technology Education Act (20 U.S.C. 2301 et seq.) is amended to read as 
follows:

``SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    ``(a) Short Title.--This <<NOTE: 20 USC 2301 note.>> Act may be 
cited as the `Carl D. Perkins Vocational and Technical Education Act of 
1998'.

    ``(b) Table of Contents.--The table of contents for this Act is as 
follows:

``Sec. 1. Short title; table of contents.
``Sec. 2. Purpose.
``Sec. 3. Definitions.
``Sec. 4. Transition provisions.
``Sec. 5. Privacy.
``Sec. 6. Limitation.
``Sec. 7. Special rule.
``Sec. 8. Authorization of appropriations.

 ``TITLE I--VOCATIONAL AND TECHNICAL EDUCATION ASSISTANCE TO THE STATES

                   ``Part A--Allotment and Allocation

``Sec. 111. Reservations and State allotment.
``Sec. 112. Within State allocation.
``Sec. 113. Accountability.
``Sec. 114. National activities.
``Sec. 115. Assistance for the outlying areas.
``Sec. 116. Native American program.
``Sec. 117. Tribally controlled postsecondary vocational and technical 
           institutions.
``Sec. 118. Occupational and employment information.

                       ``Part B--State Provisions

``Sec. 121. State administration.
``Sec. 122. State plan.
``Sec. 123. Improvement plans.
``Sec. 124. State leadership activities.

                       ``Part C--Local Provisions

``Sec. 131. Distribution of funds to secondary school programs.
``Sec. 132. Distribution of funds for postsecondary vocational and 
           technical 
           education programs.

[[Page 112 STAT. 3077]]

``Sec. 133. Special rules for vocational and technical education.
``Sec. 134. Local plan for vocational and technical education programs.
``Sec. 135. Local uses of funds.

                     ``TITLE II--TECH-PREP EDUCATION

``Sec. 201. Short title.
``Sec. 202. Definitions.
``Sec. 203. State allotment and application.
``Sec. 204. Tech-prep education.
``Sec. 205. Consortium applications.
``Sec. 206. Report.
``Sec. 207. Demonstration program.
``Sec. 208. Authorization of appropriations.

                     ``TITLE III--GENERAL PROVISIONS

               ``Part A--Federal Administrative Provisions

``Sec. 311. Fiscal requirements.
``Sec. 312. Authority to make payments.
``Sec. 313. Construction.
``Sec. 314. Voluntary selection and participation.
``Sec. 315. Limitation for certain students.
``Sec. 316. Federal laws guaranteeing civil rights.
``Sec. 317. Authorization of Secretary.
``Sec. 318. Participation of private school personnel.

                ``Part B--State Administrative Provisions

``Sec. 321. Joint funding.
``Sec. 322. Prohibition on use of funds to induce out-of-State 
           relocation of businesses.
``Sec. 323. State administrative costs.
``Sec. 324. Limitation on Federal regulations.
``Sec. 325. Student assistance and other Federal programs.

``SEC. 2. <<NOTE: 20 USC 2301.>> PURPOSE.

    ``The purpose of this Act is to develop more fully the academic, 
vocational, and technical skills of secondary students and postsecondary 
students who elect to enroll in vocational and technical education 
programs, by--
            ``(1) building on the efforts of States and localities to 
        develop challenging academic standards;
            ``(2) promoting the development of services and activities 
        that integrate academic, vocational, and technical instruction, 
        and that link secondary and postsecondary education for 
        participating vocational and technical education students;
            ``(3) increasing State and local flexibility in providing 
        services and activities designed to develop, implement, and 
        improve vocational and technical education, including tech-prep 
        education; and
            ``(4) disseminating national research, and providing 
        professional development and technical assistance, that will 
        improve vocational and technical education programs, services, 
        and activities.

``SEC. 3. <<NOTE: 20 USC 2302.>> DEFINITIONS.

    ``In this Act:
            ``(1) Administration.--The term `administration', when used 
        with respect to an eligible agency or eligible recipient, means 
        activities necessary for the proper and efficient performance of 
        the eligible agency or eligible recipient's duties under this 
        Act, including supervision, but does not include curriculum 
        development activities, personnel development, or research 
        activities.
            ``(2) All aspects of an industry.--The term `all aspects of 
        an industry' means strong experience in, and comprehensive

[[Page 112 STAT. 3078]]

        understanding of, the industry that the individual is preparing 
        to enter.
            ``(3) Area vocational and technical education school.--The 
        term `area vocational and technical education school' means--
                    ``(A) a specialized public secondary school used 
                exclusively or principally for the provision of 
                vocational and technical education to individuals who 
                are available for study in preparation for entering the 
                labor market;
                    ``(B) the department of a public secondary school 
                exclusively or principally used for providing vocational 
                and technical education in not fewer than 5 different 
                occupational fields to individuals who are available for 
                study in preparation for entering the labor market;
                    ``(C) a public or nonprofit technical institution or 
                vocational and technical education school used 
                exclusively or principally for the provision of 
                vocational and technical education to individuals who 
                have completed or left secondary school and who are 
                available for study in preparation for entering the 
                labor market, if the institution or school admits as 
                regular students both individuals who have completed 
                secondary school and individuals who have left secondary 
                school; or
                    ``(D) the department or division of an institution 
                of higher education, that operates under the policies of 
                the eligible agency and that provides vocational and 
                technical education in not fewer than five different 
                occupational fields leading to immediate employment but 
                not necessarily leading to a baccalaureate degree, if 
                the department or division admits as regular students 
                both individuals who have completed secondary school and 
                individuals who have left secondary school.
            ``(4) Career guidance and academic counseling.--The term 
        `career guidance and academic counseling' means providing access 
        to information regarding career awareness and planning with 
        respect to an individual's occupational and academic future that 
        shall involve guidance and counseling with respect to career 
        options, financial aid, and postsecondary options.
            ``(5) Charter school.--The term `charter school' has the 
        meaning given the term in section 10306 of the Elementary and 
        Secondary Education Act of 1965 (20 U.S.C. 8066).
            ``(6) Cooperative education.--The term `cooperative 
        education' means a method of instruction of education for 
        individuals who, through written cooperative arrangements 
        between a school and employers, receive instruction, including 
        required academic courses and related vocational and technical 
        education instruction, by alternation of study in school with a 
        job in any occupational field, which alternation shall be 
        planned and supervised by the school and employer so that each 
        contributes to the education and employability of the 
        individual, and may include an arrangement in which work periods 
        and school attendance may be on alternate half days, full days, 
        weeks, or other periods of time in fulfilling the cooperative 
        program.
            ``(7) Displaced homemaker.--The term `displaced homemaker' 
        means an individual who--

[[Page 112 STAT. 3079]]

                    ``(A)(i) has worked primarily without remuneration 
                to care for a home and family, and for that reason has 
                diminished marketable skills;
                    ``(ii) has been dependent on the income of another 
                family member but is no longer supported by that income; 
                or
                    ``(iii) is a parent whose youngest dependent child 
                will become ineligible to receive assistance under part 
                A of title IV of the Social Security Act (42 U.S.C. 601 
                et seq.) not later than 2 years after the date on which 
                the parent applies for assistance under this title; and
                    ``(B) is unemployed or underemployed and is 
                experiencing difficulty in obtaining or upgrading 
                employment.
            ``(8) Educational service agency.--The term `educational 
        service agency' has the meaning given the term in section 14101 
        of the Elementary and Secondary Education Act of 1965.
            ``(9) Eligible agency.--The term `eligible agency' means a 
        State board designated or created consistent with State law as 
        the sole State agency responsible for the administration of 
        vocational and technical education or for supervision of the 
        administration of vocational and technical education in the 
        State.
            ``(10) Eligible institution.--The term `eligible 
        institution' means--
                    ``(A) an institution of higher education;
                    ``(B) a local educational agency providing education 
                at the postsecondary level;
                    ``(C) an area vocational and technical education 
                school providing education at the postsecondary level;
                    ``(D) a postsecondary educational institution 
                controlled by the Bureau of Indian Affairs or operated 
                by or on behalf of any Indian tribe that is eligible to 
                contract with the Secretary of the Interior for the 
                administration of programs under the Indian Self-
                Determination Act or the Act of April 16, 1934 (48 Stat. 
                596; 25 U.S.C. 452 et seq.);
                    ``(E) an educational service agency; or
                    ``(F) a consortium of 2 or more of the entities 
                described in subparagraphs (A) through (E).
            ``(11) Eligible recipient.--The term `eligible recipient' 
        means--
                    ``(A) a local educational agency, an area vocational 
                and technical education school, an educational service 
                agency, or a consortium, eligible to receive assistance 
                under section 131; or
                    ``(B) an eligible institution or consortium of 
                eligible institutions eligible to receive assistance 
                under section 132.
            ``(12) Governor.--The term `Governor' means the chief 
        executive officer of a State or an outlying area.
            ``(13) Individual with limited english proficiency.--The 
        term `individual with limited English proficiency' means a 
        secondary school student, an adult, or an out-of-school youth, 
        who has limited ability in speaking, reading, writing, or 
        understanding the English language, and--
                    ``(A) whose native language is a language other than 
                English; or

[[Page 112 STAT. 3080]]

                    ``(B) who lives in a family or community environment 
                in which a language other than English is the dominant 
                language.
            ``(14) Individual with a disability.--
                    ``(A) In general.--The term `individual with a 
                disability' means an individual with any disability (as 
                defined in section 3 of the Americans with Disabilities 
                Act of 1990 (42 U.S.C. 12102)).
                    ``(B) Individuals with disabilities.--The term 
                `individuals with disabilities' means more than 1 
                individual with a disability.
            ``(15) Institution of higher education.--The term 
        `institution of higher education' has the meaning given the term 
        in section 101 of the Higher Education Act of 1965.
            ``(16) Local educational agency.--The term `local 
        educational agency' has the meaning given the term in section 
        14101 of the Elementary and Secondary Education Act of 1965 (20 
        U.S.C. 8801).
            ``(17) Nontraditional training and employment.--The term 
        `nontraditional training and employment' means occupations or 
        fields of work, including careers in computer science, 
        technology, and other emerging high skill occupations, for which 
        individuals from one gender comprise less than 25 percent of the 
        individuals employed in each such occupation or field of work.
            ``(18) Outlying area.--The term `outlying area' means the 
        United States Virgin Islands, Guam, American Samoa, the 
        Commonwealth of the Northern Mariana Islands, the Republic of 
        the Marshall Islands, the Federated States of Micronesia, and 
        the Republic of Palau.
            ``(19) Postsecondary educational institution.--The term 
        `postsecondary educational institution' means--
                    ``(A) an institution of higher education that 
                provides not less than a 2-year program of instruction 
                that is acceptable for credit toward a bachelor's 
                degree;
                    ``(B) a tribally controlled college or university; 
                or
                    ``(C) a nonprofit educational institution offering 
                certificate or apprenticeship programs at the 
                postsecondary level.
            ``(20) School dropout.--The term `school dropout' means an 
        individual who is no longer attending any school and who has not 
        received a secondary school diploma or its recognized 
        equivalent.
            ``(21) Secondary school.--The term `secondary school' has 
        the meaning given the term in section 14101 of the Elementary 
        and Secondary Education Act of 1965 (20 U.S.C. 8801).
            ``(22) Secretary.--The term `Secretary' means the Secretary 
        of Education.
            ``(23) Special populations.--The term `special populations' 
        means--
                    ``(A) individuals with disabilities;
                    ``(B) individuals from economically disadvantaged 
                families, including foster children;
                    ``(C) individuals preparing for nontraditional 
                training and employment;
                    ``(D) single parents, including single pregnant 
                women;
                    ``(E) displaced homemakers; and

[[Page 112 STAT. 3081]]

                    ``(F) individuals with other barriers to educational 
                achievement, including individuals with limited English 
                proficiency.
            ``(24) State.--The term `State', unless otherwise specified, 
        means each of the several States of the United States, the 
        District of Columbia, the Commonwealth of Puerto Rico, and each 
        outlying area.
            ``(25) Support services.--The term `support services' means 
        services related to curriculum modification, equipment 
        modification, classroom modification, supportive personnel, and 
        instructional aids and devices.
            ``(26) Tech-prep program.--The term `tech-prep program' 
        means a program of study that--
                    ``(A) combines at least 2 years of secondary 
                education (as determined under State law) and 2 years of 
                postsecondary education in a nonduplicative sequential 
                course of study;
                    ``(B) strengthens the applied academic component of 
                vocational and technical education through the 
                integration of academic, and vocational and technical, 
                instruction;
                    ``(C) provides technical preparation in an area such 
                as engineering technology, applied science, a 
                mechanical, industrial, or practical art or trade, 
                agriculture, a health occupation, business, or applied 
                economics;
                    ``(D) builds student competence in mathematics, 
                science, and communications (including through applied 
                academics) in a coherent sequence of courses; and
                    ``(E) leads to an associate degree or a certificate 
                in a specific career field, and to high skill, high wage 
                employment, or further education.
            ``(27) Tribally controlled college or university.--The term 
        `tribally controlled college or university' has the meaning 
        given such term in section 2 of the Tribally Controlled College 
        or University Assistance Act of 1978 (25 U.S.C. 1801(a)(4)).
            ``(28) Tribally controlled postsecondary vocational and 
        technical institution.--The term `tribally controlled 
        postsecondary vocational and technical institution' means an 
        institution of higher education (as defined in section 101 of 
        the Higher Education Act of 1965, except that paragraph (2) of 
        such section shall not be applicable and the reference to 
        Secretary in paragraph (5)(A) of such section shall be deemed to 
        refer to the Secretary of the Interior) that--
                    ``(A) is formally controlled, or has been formally 
                sanctioned or chartered, by the governing body of an 
                Indian tribe or Indian tribes;
                    ``(B) offers a technical degree or certificate 
                granting program;
                    ``(C) is governed by a board of directors or 
                trustees, a majority of whom are Indians;
                    ``(D) demonstrates adherence to stated goals, a 
                philosophy, or a plan of operation, that fosters 
                individual Indian economic and self-sufficiency 
                opportunity, including programs that are appropriate to 
                stated tribal goals of developing individual 
                entrepreneurships and self-sustaining economic 
                infrastructures on reservations;
                    ``(E) has been in operation for at least 3 years;

[[Page 112 STAT. 3082]]

                    ``(F) holds accreditation with or is a candidate for 
                accreditation by a nationally recognized accrediting 
                authority for postsecondary vocational and technical 
                education; and
                    ``(G) enrolls the full-time equivalent of not less 
                than 100 students, of whom a majority are Indians.
            ``(29) Vocational and technical education.--The term 
        `vocational and technical education' means organized educational 
        activities that--
                    ``(A) offer a sequence of courses that provides 
                individuals with the academic and technical knowledge 
                and skills the individuals need to prepare for further 
                education and for careers (other than careers requiring 
                a baccalaureate, master's, or doctoral degree) in 
                current or emerging employment sectors; and
                    ``(B) include competency-based applied learning that 
                contributes to the academic knowledge, higher-order 
                reasoning and problem-solving skills, work attitudes, 
                general employability skills, technical skills, and 
                occupation-specific skills, of an individual.
            ``(30) Vocational and technical student organization.--
                    ``(A) In general.--The term `vocational and 
                technical student organization' means an organization 
                for individuals enrolled in a vocational and technical 
                education program that engages in vocational and 
                technical activities as an integral part of the 
                instructional program.
                    ``(B) State and national units.--An organization 
                described in subparagraph (A) may have State and 
                national units that aggregate the work and purposes of 
                instruction in vocational and technical education at the 
                local level.

``SEC. 4. <<NOTE: 20 USC 2303.>> TRANSITION PROVISIONS.

    ``The Secretary shall take such steps as the Secretary determines to 
be appropriate to provide for the orderly transition to the authority of 
this Act from any authority under provisions of the Carl D. Perkins 
Vocational and Applied Technology Education Act, as such Act was in 
effect on the day before the date of enactment of the Carl D. Perkins 
Vocational and Applied Technology Education Amendments of 1998.

``SEC. 5. <<NOTE: 20 USC 2304.>> PRIVACY.

    ``(a) GEPA.--Nothing in this Act shall be construed to supersede the 
privacy protections afforded parents and students under section 444 of 
the General Education Provisions Act (20 U.S.C. 1232g), as added by the 
Family Educational Rights and Privacy Act of 1974 (section 513 of Public 
Law 93-380; 88 Stat. 571).
    ``(b) Prohibition on Development of National Database.--Nothing in 
this Act shall be construed to permit the development of a national 
database of personally identifiable information on individuals receiving 
services under this Act.

``SEC. 6. <<NOTE: 20 USC 2305.>> LIMITATION.

    ``All of the funds made available under this Act shall be used in 
accordance with the requirements of this Act. None of the funds made 
available under this Act may be used to provide funding under the 
School-to-Work Opportunities Act of 1994 (20 U.S.C. 6101 et seq.) or to 
carry out, through programs funded under

[[Page 112 STAT. 3083]]

this Act, activities that were funded under the School-To-Work 
Opportunities Act of 1994, unless the programs funded under this Act 
serve only those participants eligible to participate in the programs 
under this Act.

``SEC. 7. <<NOTE: 20 USC 2306.>> SPECIAL RULE.

    ``In the case of a local community in which no employees are 
represented by a labor organization, for purposes of this Act the term 
`representatives of employees' shall be substituted for `labor 
organization'.

``SEC. 8. <<NOTE: 20 USC 2307.>> AUTHORIZATION OF APPROPRIATIONS.

    ``There is authorized to be appropriated to carry out this Act 
(other than sections 114, 117, and 118, and title II) such sums as may 
be necessary for each of the fiscal years 1999 through 2003.

 ``TITLE I--VOCATIONAL AND TECHNICAL EDUCATION ASSISTANCE TO THE STATES

                   ``PART A--ALLOTMENT AND ALLOCATION

``SEC. 111. <<NOTE: 20 USC 2321.>> RESERVATIONS AND STATE ALLOTMENT.

    ``(a) Reservations and State Allotment.--
            ``(1) Reservations.--From the sum appropriated under section 
        8 for each fiscal year, the Secretary shall reserve--
                    ``(A) 0.2 percent to carry out section 115;
                    ``(B) 1.50 percent to carry out section 116, of 
                which--
                          ``(i) 1.25 percent of the sum shall be 
                      available to carry out section 116(b); and
                          ``(ii) 0.25 percent of the sum shall be 
                      available to carry out section 116(h); and
                    ``(C) in the case of each of the fiscal years 2000 
                through 2003, 0.54 percent to carry out section 503 of 
                Public Law 105-220.
            ``(2) State allotment formula.--Subject to paragraphs (3) 
        and (4), from the remainder of the sums appropriated under 
        section 8 and not reserved under paragraph (1) for a fiscal 
        year, the Secretary shall allot to a State for the fiscal year--
                    ``(A) an amount that bears the same ratio to 50 
                percent of the sums being allotted as the product of the 
                population aged 15 to 19 inclusive, in the State in the 
                fiscal year preceding the fiscal year for which the 
                determination is made and the State's allotment ratio 
                bears to the sum of the corresponding products for all 
                the States;
                    ``(B) an amount that bears the same ratio to 20 
                percent of the sums being allotted as the product of the 
                population aged 20 to 24, inclusive, in the State in the 
                fiscal year preceding the fiscal year for which the 
                determination is made and the State's allotment ratio 
                bears to the sum of the corresponding products for all 
                the States;
                    ``(C) an amount that bears the same ratio to 15 
                percent of the sums being allotted as the product of the 
                population aged 25 to 65, inclusive, in the State in the 
                fiscal year preceding the fiscal year for which the 
                determination is

[[Page 112 STAT. 3084]]

                made and the State's allotment ratio bears to the sum of 
                the corresponding products for all the States; and
                    ``(D) an amount that bears the same ratio to 15 
                percent of the sums being allotted as the amounts 
                allotted to the State under subparagraphs (A), (B), and 
                (C) for such years bears to the sum of the amounts 
                allotted to all the States under subparagraphs (A), (B), 
                and (C) for such year.
            ``(3) Minimum allotment.--
                    ``(A) In general.--Notwithstanding any other 
                provision of law and subject to subparagraphs (B) and 
                (C), and paragraph (4), no State shall receive for a 
                fiscal year under this subsection less than \1/2\ of 1 
                percent of the amount appropriated under section 8 and 
                not reserved under paragraph (1) for such fiscal year. 
                Amounts necessary for increasing such payments to States 
                to comply with the preceding sentence shall be obtained 
                by ratably reducing the amounts to be paid to other 
                States.
                    ``(B) Requirement.--No State, by reason of the 
                application of subparagraph (A), shall receive for a 
                fiscal year more than 150 percent of the amount the 
                State received under this subsection for the preceding 
                fiscal year (or in the case of fiscal year 1999 only, 
                under section 101 of the Carl D. Perkins Vocational and 
                Applied Technology Education Act, as such section was in 
                effect on the day before the date of enactment of the 
                Carl D. Perkins Vocational and Applied Technology 
                Education Amendments of 1998).
                    ``(C) Special rule.--
                          ``(i) In general.--Subject to paragraph (4), 
                      no State, by reason of the application of 
                      subparagraph (A), shall be allotted for a fiscal 
                      year more than the lesser of--
                                    ``(I) 150 percent of the amount that 
                                the State received in the preceding 
                                fiscal year (or in the case of fiscal 
                                year 1999 only, under section 101 of the 
                                Carl D. Perkins Vocational and Applied 
                                Technology Education Act, as such 
                                section was in effect on the day before 
                                the date of enactment of the Carl D. 
                                Perkins Vocational and Applied 
                                Technology Education Amendments of 
                                1998); and
                                    ``(II) the amount calculated under 
                                clause (ii).
                          ``(ii) Amount.--The amount calculated under 
                      this clause shall be determined by multiplying--
                                    ``(I) the number of individuals in 
                                the State counted under paragraph (2) in 
                                the preceding fiscal year; by
                                    ``(II) 150 percent of the national 
                                average per pupil payment made with 
                                funds available under this section for 
                                that year (or in the case of fiscal year 
                                1999, only, under section 101 of the 
                                Carl D. Perkins Vocational and Applied 
                                Technology Education Act, as such 
                                section was in effect on the day before 
                                the date of enactment of the Carl D. 
                                Perkins Vocational and Applied 
                                Technology Education Amendments of 
                                1998).
            ``(4) Hold harmless.--

[[Page 112 STAT. 3085]]

                    ``(A) In general.--No State shall receive an 
                allotment under this section for a fiscal year that is 
                less than the allotment the State received under part A 
                of title I of the Carl D. Perkins Vocational and Applied 
                Technology Education Act (20 U.S.C. 2311 et seq.) (as 
                such part was in effect on the day before the date of 
                enactment of the Carl D. Perkins Vocational and Applied 
                Technology Education Amendments of 1998) for fiscal year 
                1998.
                    ``(B) Ratable reduction.--If for any fiscal year the 
                amount appropriated for allotments under this section is 
                insufficient to satisfy the provisions of subparagraph 
                (A), the payments to all States under such subparagraph 
                shall be ratably reduced.

    ``(b) Reallotment.--If the Secretary determines that any amount of 
any State's allotment under subsection (a) for any fiscal year will not 
be required for such fiscal year for carrying out the activities for 
which such amount has been allotted, the Secretary shall make such 
amount available for reallotment. Any such reallotment among other 
States shall occur on such dates during the same year as the Secretary 
shall fix, and shall be made on the basis of criteria established by 
regulation. No funds may be reallotted for any use other than the use 
for which the funds were appropriated. Any amount reallotted to a State 
under this subsection for any fiscal year shall remain available for 
obligation during the succeeding fiscal year and shall be deemed to be 
part of the State's allotment for the year in which the amount is 
obligated.
    ``(c) Allotment Ratio.--
            ``(1) In general.--The allotment ratio for any State shall 
        be 1.00 less the product of--
                    ``(A) 0.50; and
                    ``(B) the quotient obtained by dividing the per 
                capita income for the State by the per capita income for 
                all the States (exclusive of the Commonwealth of Puerto 
                Rico and the United States Virgin Islands), except 
                that--
                          ``(i) the allotment ratio in no case shall be 
                      more than 0.60 or less than 0.40; and
                          ``(ii) the allotment ratio for the 
                      Commonwealth of Puerto Rico and the United States 
                      Virgin Islands shall be 0.60.
            ``(2) Promulgation.--The allotment ratios shall be 
        promulgated by the Secretary for each fiscal year between 
        October 1 and December 31 of the fiscal year preceding the 
        fiscal year for which the determination is made. Allotment 
        ratios shall be computed on the basis of the average of the 
        appropriate per capita incomes for the 3 most recent consecutive 
        fiscal years for which satisfactory data are available.
            ``(3) Definition of per capita income.--For the purpose of 
        this section, the term `per capita income' means, with respect 
        to a fiscal year, the total personal income in the calendar year 
        ending in such year, divided by the population of the area 
        concerned in such year.
            ``(4) Population determination.--For the purposes of this 
        section, population shall be determined by the Secretary on the 
        basis of the latest estimates available to the Department of 
        Education.

[[Page 112 STAT. 3086]]

    ``(d) Definition of State.--For the purpose of this section, the 
term `State' means each of the several States of the United States, the 
District of Columbia, the Commonwealth of Puerto Rico, and the United 
States Virgin Islands.

``SEC. 112. <<NOTE: 20 USC 2322.>> WITHIN STATE ALLOCATION.

    ``(a) In General.--From the amount allotted to each State under 
section 111 for a fiscal year, the State board (hereinafter referred to 
as the `eligible agency') shall make available--
            ``(1) not less than 85 percent for distribution under 
        section 131 or 132, of which not more than 10 percent of the 85 
        percent may be used in accordance with subsection (c);
            ``(2) not more than 10 percent to carry out State leadership 
        activities described in section 124, of which--
                    ``(A) an amount equal to not more than 1 percent of 
                the amount allotted to the State under section 111 for 
                the fiscal year shall be available to serve individuals 
                in State institutions, such as State correctional 
                institutions and institutions that serve individuals 
                with disabilities; and
                    ``(B) not less than $60,000 and not more than 
                $150,000 shall be available for services that prepare 
                individuals for nontraditional training and employment; 
                and
            ``(3) an amount equal to not more than 5 percent, or 
        $250,000, whichever is greater, for administration of the State 
        plan, which may be used for the costs of--
                    ``(A) developing the State plan;
                    ``(B) reviewing the local plans;
                    ``(C) monitoring and evaluating program 
                effectiveness;
                    ``(D) assuring compliance with all applicable 
                Federal laws; and
                    ``(E) providing technical assistance.

    ``(b) Matching Requirement.--Each eligible agency receiving funds 
made available under subsection (a)(3) shall match, from non-Federal 
sources and on a dollar-for-dollar basis, the funds received under 
subsection (a)(3).
    ``(c) Reserve.--
            ``(1) In general.--From amounts made available under 
        subsection (a)(1) to carry out this subsection, an eligible 
        agency may award grants to eligible recipients for vocational 
        and technical education activities described in section 135 in--
                    ``(A) rural areas;
                    ``(B) areas with high percentages of vocational and 
                technical education students;
                    ``(C) areas with high numbers of vocational and 
                technical students; and
                    ``(D) communities negatively impacted by changes 
                resulting from the amendments made by the Carl D. 
                Perkins Vocational and Applied Technology Education 
                Amendments of 1998 to the within State allocation under 
                section 231 of the Carl D. Perkins Vocational and 
                Applied Technology Education Act (as such section 231 
                was in effect on the day before the date of enactment of 
                the Carl D. Perkins Vocational and Applied Technology 
                Education Amendments of 1998).
            ``(2) Special rule.--Each eligible agency awarding a grant 
        under this subsection shall use the grant funds to serve at

[[Page 112 STAT. 3087]]

        least 2 of the categories described in subparagraphs (A) through 
        (D) of paragraph (1).

``SEC. 113. <<NOTE: 20 USC 2323.>> ACCOUNTABILITY.

    ``(a) Purpose.--The purpose of this section is to establish a State 
performance accountability system, comprised of the activities described 
in this section, to assess the effectiveness of the State in achieving 
statewide progress in vocational and technical education, and to 
optimize the return of investment of Federal funds in vocational and 
technical education activities.
    ``(b) State Performance Measures.--
            ``(1) In general.--Each eligible agency, with input from 
        eligible recipients, shall establish performance measures for a 
        State that consist of--
                    ``(A) the core indicators of performance described 
                in paragraph (2)(A);
                    ``(B) any additional indicators of performance (if 
                any) identified by the eligible agency under paragraph 
                (2)(B); and
                    ``(C) a State adjusted level of performance 
                described in paragraph (3)(A) for each core indicator of 
                performance, and State levels of performance described 
                in paragraph (3)(B) for each additional indicator of 
                performance.
            ``(2) Indicators of performance.--
                    ``(A) Core indicators of performance.--Each eligible 
                agency shall identify in the State plan core indicators 
                of performance that include, at a minimum, measures of 
                each of the following:
                          ``(i) Student attainment of challenging State 
                      established academic, and vocational and 
                      technical, skill proficiencies.
                          ``(ii) Student attainment of a secondary 
                      school diploma or its recognized equivalent, a 
                      proficiency credential in conjunction with a 
                      secondary school diploma, or a postsecondary 
                      degree or credential.
                          ``(iii) Placement in, retention in, and 
                      completion of, postsecondary education or advanced 
                      training, placement in military service, or 
                      placement or retention in employment.
                          ``(iv) Student participation in and completion 
                      of vocational and technical education programs 
                      that lead to nontraditional training and 
                      employment.
                    ``(B) Additional indicators of performance.--An 
                eligible agency, with input from eligible recipients, 
                may identify in the State plan additional indicators of 
                performance for vocational and technical education 
                activities authorized under the title.
                    ``(C) Existing indicators.--If a State previously 
                has developed State performance measures that meet the 
                requirements of this section, the State may use such 
                performance measures to measure the progress of 
                vocational and technical education students.
                    ``(D) State role.--Indicators of performance 
                described in this paragraph shall be established solely 
                by each eligible agency with input from eligible 
                recipients.
            ``(3) Levels of performance.--

[[Page 112 STAT. 3088]]

                    ``(A) State adjusted levels of performance for core 
                indicators of performance.--
                          ``(i) In general.--Each eligible agency, with 
                      input from eligible recipients, shall establish in 
                      the State plan submitted under section 122, levels 
                      of performance for each of the core indicators of 
                      performance described in paragraph (2)(A) for 
                      vocational and technical education activities 
                      authorized under this title. The levels of 
                      performance established under this subparagraph 
                      shall, at a minimum--
                                    ``(I) be expressed in a percentage 
                                or numerical form, so as to be 
                                objective, quantifiable, and measurable; 
                                and
                                    ``(II) require the State to 
                                continually make progress toward 
                                improving the performance of vocational 
                                and technical education students.
                          ``(ii) Identification in the state plan.--Each 
                      eligible agency shall identify, in the State plan 
                      submitted under section 122, levels of performance 
                      for each of the core indicators of performance for 
                      the first 2 program years covered by the State 
                      plan.
                          ``(iii) Agreement on state adjusted levels of 
                      performance for first 2 years.--The Secretary and 
                      each eligible agency shall reach agreement on the 
                      levels of performance for each of the core 
                      indicators of performance, for the first 2 program 
                      years covered by the State plan, taking into 
                      account the levels identified in the State plan 
                      under clause (ii) and the factors described in 
                      clause (vi). The levels of performance agreed to 
                      under this clause shall be considered to be the 
                      State adjusted level of performance for the State 
                      for such years and shall be incorporated into the 
                      State plan prior to the approval of such plan.
                          ``(iv) Role of the secretary.--The role of the 
                      Secretary in the agreement described in clauses 
                      (iii) and (v) is limited to reaching agreement on 
                      the percentage or number of students who attain 
                      the State adjusted levels of performance.
                          ``(v) Agreement on state adjusted levels of 
                      performance for 3rd, 4th, and 5th years.--Prior to 
                      the third program year covered by the State plan, 
                      the Secretary and each eligible agency shall reach 
                      agreement on the State adjusted levels of 
                      performance for each of the core indicators of 
                      performance for the third, fourth, and fifth 
                      program years covered by the State plan, taking 
                      into account the factors described in clause (vi). 
                      The State adjusted levels of performance agreed to 
                      under this clause shall be considered to be the 
                      State adjusted levels of performance for the State 
                      for such years and shall be incorporated into the 
                      State plan.
                          ``(vi) Factors.--The agreement described in 
                      clause (iii) or (v) shall take into account--
                                    ``(I) how the levels of performance 
                                involved compare with the State adjusted 
                                levels of performance established for 
                                other States taking into account factors 
                                including the characteristics of

[[Page 112 STAT. 3089]]

                                participants when the participants 
                                entered the program and the services or 
                                instruction to be provided; and
                                    ``(II) the extent to which such 
                                levels of performance promote continuous 
                                improvement on the indicators of 
                                performance by such State.
                          ``(vii) Revisions.--If unanticipated 
                      circumstances arise in a State resulting in a 
                      significant change in the factors described in 
                      clause (vi)(II), the eligible agency may request 
                      that the State adjusted levels of performance 
                      agreed to under clause (iii) or (vi) be revised. 
                      The Secretary shall issue objective criteria and 
                      methods for making such revisions.
                    ``(B) Levels of performance for additional 
                indicators.--Each eligible agency shall identify in the 
                State plan, State levels of performance for each of the 
                additional indicators of performance described in 
                paragraph (2)(B). Such levels shall be considered to be 
                the State levels of performance for purposes of this 
                title.

    ``(c) Report.--
            ``(1) In general.--Each eligible agency that receives an 
        allotment under section 111 shall annually prepare and submit to 
        the Secretary a report regarding--
                    ``(A) the progress of the State in achieving the 
                State adjusted levels of performance on the core 
                indicators of performance; and
                    ``(B) information on the levels of performance 
                achieved by the State with respect to the additional 
                indicators of performance, including the levels of 
                performance for special populations.
            ``(2) Special populations.--The report submitted by the 
        eligible agency in accordance with paragraph (1) shall include a 
        quantifiable description of the progress special populations 
        participating in vocational and technical education programs 
        have made in meeting the State adjusted levels of performance 
        established by the eligible agency.
            ``(3) Information dissemination.--The Secretary--
                    ``(A) shall make the information contained in such 
                reports available to the general public;
                    ``(B) shall disseminate State-by-State comparisons 
                of the information; and
                    ``(C) shall provide the appropriate committees of 
                Congress copies of such reports.

``SEC. 114. <<NOTE: 20 USC 2324.>> NATIONAL ACTIVITIES.

    ``(a) Program Performance Information.--
            ``(1) In general.--The Secretary shall collect performance 
        information about, and report on, the condition of vocational 
        and technical education and on the effectiveness of State and 
        local programs, services, and activities carried out under this 
        title in order to provide the Secretary and Congress, as well as 
        Federal, State, local, and tribal agencies, with information 
        relevant to improvement in the quality and effectiveness of 
        vocational and technical education. <<NOTE: Reports.>> The 
        Secretary annually shall report to Congress on the Secretary's 
        aggregate analysis of performance information collected each 
        year pursuant to

[[Page 112 STAT. 3090]]

        this title, including an analysis of performance data regarding 
        special populations.
            ``(2) Compatibility.--The Secretary shall, to the extent 
        feasible, ensure that the performance information system is 
        compatible with other Federal information systems.
            ``(3) Assessments.--As a regular part of its assessments, 
        the National Center for Education Statistics shall collect and 
        report information on vocational and technical education for a 
        nationally representative sample of students. Such assessment 
        may include international comparisons.

    ``(b) Miscellaneous Provisions.--
            ``(1) Collection of information at reasonable cost.--The 
        Secretary shall take such action as may be necessary to secure 
        at reasonable cost the information required by this title. To 
        ensure reasonable cost, the Secretary, in consultation with the 
        National Center for Education Statistics, the Office of 
        Vocational and Adult Education, and an entity assisted under 
        section 118 shall determine the methodology to be used and the 
        frequency with which information is to be collected.
            ``(2) Cooperation of states.--All eligible agencies 
        receiving assistance under this Act shall cooperate with the 
        Secretary in implementing the information systems developed 
        pursuant to this Act.

    ``(c) Research, Development, Dissemination, Evaluation and 
Assessment.--
            ``(1) Single plan.--
                    ``(A) In general.--The Secretary may, directly or 
                through grants, contracts, or cooperative agreements, 
                carry out research, development, dissemination, 
                evaluation and assessment, capacity building, and 
                technical assistance with regard to the vocational and 
                technical education programs under this Act. The 
                Secretary shall develop a single plan for such 
                activities.
                    ``(B) Plan.--Such plan shall--
                          ``(i) identify the vocational and technical 
                      education activities described in subparagraph (A) 
                      the Secretary will carry out under this section;
                          ``(ii) describe how the Secretary will 
                      evaluate such vocational and technical education 
                      activities in accordance with paragraph (3); and
                          ``(iii) include such other information as the 
                      Secretary determines to be appropriate.
            ``(2) Independent advisory panel.--The Secretary shall 
        appoint an independent advisory panel, consisting of vocational 
        and technical education administrators, educators, researchers, 
        and representatives of labor organizations, businesses, parents, 
        guidance and counseling professionals, and other relevant 
        groups, to advise the Secretary on the implementation of the 
        assessment described in paragraph (3), including the issues to 
        be addressed, the methodology of the studies involved, and the 
        findings and recommendations resulting from the assessment. The 
        panel shall submit to the Committee on Education and the 
        Workforce of the House of Representatives, the Committee on 
        Labor and Human Resources of the Senate, and the

[[Page 112 STAT. 3091]]

        Secretary an independent analysis of the findings and 
        recommendations resulting from the assessment described in 
        paragraph (3). The Federal Advisory Committee Act (5 U.S.C. 
        App.) shall not apply to the panel established under this 
        subsection.
            ``(3) Evaluation and assessment.--
                    ``(A) In general.--From amounts made available under 
                paragraph (8), the Secretary shall provide for the 
                conduct of an independent evaluation and assessment of 
                vocational and technical education programs under this 
                Act through studies and analyses conducted independently 
                through grants, contracts, and cooperative agreements 
                that are awarded on a competitive basis.
                    ``(B) Contents.--The assessment required under 
                paragraph (1) shall include descriptions and evaluations 
                of--
                          ``(i) the extent to which State, local, and 
                      tribal entities have developed, implemented, or 
                      improved State and local vocational and technical 
                      education programs and the effect of programs 
                      assisted under this Act on that development, 
                      implementation, or improvement, including the 
                      capacity of State, tribal, and local vocational 
                      and technical education systems to achieve the 
                      purpose of this Act;
                          ``(ii) the extent to which expenditures at the 
                      Federal, State, tribal, and local levels address 
                      program improvement in vocational and technical 
                      education, including the impact of Federal 
                      allocation requirements (such as within-State 
                      allocation formulas) on the delivery of services;
                          ``(iii) the preparation and qualifications of 
                      teachers of vocational and technical, and 
                      academic, curricula in vocational and technical 
                      education programs, as well as shortages of such 
                      teachers;
                          ``(iv) participation of students in vocational 
                      and technical education programs;
                          ``(v) academic and employment outcomes of 
                      vocational and technical education, including 
                      analyses of--
                                    ``(I) the number of vocational and 
                                technical education students and tech-
                                prep students who meet State adjusted 
                                levels of performance;
                                    ``(II) the extent and success of 
                                integration of academic, and vocational 
                                and technical, education for students 
                                participating in vocational and 
                                technical education programs; and
                                    ``(III) the extent to which 
                                vocational and technical education 
                                programs prepare students for subsequent 
                                employment in high-wage, high-skill 
                                careers or participation in 
                                postsecondary education;
                          ``(vi) employer involvement in, and 
                      satisfaction with, vocational and technical 
                      education programs;
                          ``(vii) the use and impact of educational 
                      technology and distance learning with respect to 
                      vocational and technical education and tech-prep 
                      programs; and
                          ``(viii) the effect of State adjusted levels 
                      of performance and State levels of performance on 
                      the delivery of vocational and technical education 
                      services.
                    ``(C) Reports.--

[[Page 112 STAT. 3092]]

                          ``(i) In general.--The Secretary shall submit 
                      to the Committee on Education and the Workforce of 
                      the House of Representatives and the Committee on 
                      Labor and Human Resources of the Senate--
                                    ``(I) an interim report regarding 
                                the assessment on or before January 1, 
                                2002; and
                                    ``(II) a final report, summarizing 
                                all studies and analyses that relate to 
                                the assessment and that are completed 
                                after the assessment, on or before July 
                                1, 2002.
                          ``(ii) Prohibition.--Notwithstanding any other 
                      provision of law, the reports required by this 
                      subsection shall not be subject to any review 
                      outside the Department of Education before their 
                      transmittal to the Committee on Education and the 
                      Workforce of the House of Representatives, the 
                      Committee on Labor and Human Resources of the 
                      Senate, and the Secretary, but the President, the 
                      Secretary, and the independent advisory panel 
                      established under paragraph (2) may make such 
                      additional recommendations to Congress with 
                      respect to the assessment as the President, the 
                      Secretary, or the panel determine to be 
                      appropriate.
            ``(4) Collection of state information and report.--
                    ``(A) In general.--The Secretary may collect and 
                disseminate information from States regarding State 
                efforts to meet State adjusted levels of performance 
                described in section 113.
                    ``(B) Report.--The Secretary shall gather any 
                information collected pursuant to subparagraph (A) and 
                submit a report to the Committee on Education and the 
                Workforce of the House of Representatives and the 
                Committee on Labor and Human Resources of the Senate.
            ``(5) Research.--
                    ``(A) In general.--The Secretary, after consulting 
                with the States, shall award grants, contracts, or 
                cooperative agreements on a competitive basis to an 
                institution of higher education, a public or private 
                nonprofit organization or agency, or a consortium of 
                such institutions, organizations, or agencies to 
                establish a national research center or centers--
                          ``(i) to carry out research for the purpose of 
                      developing, improving, and identifying the most 
                      successful methods for successfully addressing the 
                      education, employment, and training needs of 
                      participants in vocational and technical education 
                      programs, including research and evaluation in 
                      such activities as--
                                    ``(I) the integration of vocational 
                                and technical instruction, and academic, 
                                secondary and postsecondary instruction;
                                    ``(II) education technology and 
                                distance learning approaches and 
                                strategies that are effective with 
                                respect to vocational and technical 
                                education;
                                    ``(III) State adjusted levels of 
                                performance and State levels of 
                                performance that serve to improve 
                                vocational and technical education 
                                programs and student achievement; and

[[Page 112 STAT. 3093]]

                                    ``(IV) academic knowledge and 
                                vocational and technical skills required 
                                for employment or participation in 
                                postsecondary education;
                          ``(ii) to carry out research to increase the 
                      effectiveness and improve the implementation of 
                      vocational and technical education programs, 
                      including conducting research and development, and 
                      studies, providing longitudinal information or 
                      formative evaluation with respect to vocational 
                      and technical education programs and student 
                      achievement;
                          ``(iii) to carry out research that can be used 
                      to improve teacher training and learning in the 
                      vocational and technical education classroom, 
                      including--
                                    ``(I) effective inservice and 
                                preservice teacher education that 
                                assists vocational and technical 
                                education systems; and
                                    ``(II) dissemination and training 
                                activities related to the applied 
                                research and demonstration activities 
                                described in this subsection, which may 
                                also include serving as a repository for 
                                information on vocational and technical 
                                skills, State academic standards, and 
                                related materials; and
                          ``(iv) to carry out such other research as the 
                      Secretary determines appropriate to assist State 
                      and local recipients of funds under this Act.
                    ``(B) Report.--The center or centers conducting the 
                activities described in subparagraph (A) shall annually 
                prepare a report of key research findings of such center 
                or centers and shall submit copies of the report to the 
                Secretary, the Committee on Education and the Workforce 
                of the House of Representatives, the Committee on Labor 
                and Human Resources of the Senate, the Library of 
                Congress, and each eligible agency.
                    ``(C) Dissemination.--The center or centers shall 
                conduct dissemination and training activities based upon 
                the research described in subparagraph (A).
            ``(6) Demonstrations and dissemination.--
                    ``(A) Demonstration program.--The Secretary is 
                authorized to carry out demonstration vocational and 
                technical education programs, to replicate model 
                vocational and technical education programs, to 
                disseminate best practices information, and to provide 
                technical assistance upon request of a State, for the 
                purposes of developing, improving, and identifying the 
                most successful methods and techniques for providing 
                vocational and technical education programs assisted 
                under this Act.
                    ``(B) Demonstration partnership.--
                          ``(i) In general.--The Secretary shall carry 
                      out a demonstration partnership project involving 
                      a 4-year, accredited postsecondary institution, in 
                      cooperation with local public education 
                      organizations, volunteer groups, and private 
                      sector business participants to provide program 
                      support, and facilities for education, training, 
                      tutoring, counseling, employment preparation, 
                      specific skills training in emerging and 
                      established professions, and for retraining of 
                      military medical personnel, individuals displaced 
                      by corporate or

[[Page 112 STAT. 3094]]

                      military restructuring, migrant workers, as well 
                      as other individuals who otherwise do not have 
                      access to such services, through multisite, 
                      multistate distance learning technologies.
                          ``(ii) Program.--Such program may be carried 
                      out directly or through grants, contracts, 
                      cooperative agreements, or through the national 
                      center or centers established under paragraph (5).
            ``(7) Definition.--In this section, the term `institution of 
        higher education' has the meaning given the term in section 101 
        of the Higher Education Act of 1965.
            ``(8) Authorization of appropriations.--There are authorized 
        to be appropriated to carry out this section such sums as may be 
        necessary for fiscal year 1999 and each of the 4 succeeding 
        fiscal years.

``SEC. 115. ASSISTANCE FOR THE OUTLYING AREAS.

    ``(a) Outlying <<NOTE: Grants. 20 USC 2325.>> Areas.--From funds 
reserved pursuant to 
section 111(a)(1)(A), the Secretary shall--
            ``(1) make a grant in the amount of $500,000 to Guam; and
            ``(2) make a grant in the amount of $190,000 to each of 
        American Samoa and the Commonwealth of the Northern Mariana 
        Islands.

    ``(b) Remainder.--Subject to the provisions of subsection (a), the 
Secretary shall make a grant of the remainder of funds reserved pursuant 
to section 111(a)(1)(A) to the Pacific Region Educational Laboratory in 
Honolulu, Hawaii, to make grants for vocational and technical education 
and training in Guam, American Samoa, the Commonwealth of the Northern 
Mariana Islands, the Republic of the Marshall Islands, the Federated 
States of Micronesia, and the Republic of Palau, for the purpose of 
providing direct vocational and technical educational services, 
including--
            ``(1) teacher and counselor training and retraining;
            ``(2) curriculum development; and
            ``(3) the improvement of vocational and technical education 
        and training programs in secondary schools and institutions of 
        higher education, or improving cooperative education programs 
        involving both secondary schools and institutions of higher 
        education.

    ``(c) Limitation.--The Pacific Region Educational Laboratory may use 
not more than 5 percent of the funds received under subsection (b) for 
administrative costs.
    ``(d) Restriction.--Notwithstanding any other provision of law, the 
Republic of the Marshall Islands, the Federated States of Micronesia, 
and the Republic of Palau shall not receive any funds under this title 
for any fiscal year that begins after September 30, 2001.

``SEC. 116. <<NOTE: 20 USC 2326.>> NATIVE AMERICAN PROGRAM.

    ``(a) Definitions.--In this section:
            ``(1) Alaska native.--The term `Alaska Native' means a 
        Native as such term is defined in section 3 of the Alaska Native 
        Claims Settlement Act (43 U.S.C. 1602(b)).
            ``(2) Bureau funded school.--The term `Bureau funded school' 
        has the meaning given the term in section 1146 of the Education 
        Amendments of 1978 (25 U.S.C. 2026).

[[Page 112 STAT. 3095]]

            ``(3) Indian, indian tribe, and tribal organization.--The 
        terms `Indian', `Indian tribe', and `tribal organization' have 
        the meanings given the terms in section 4 of the Indian Self-
        Determination and Education Assistance Act (25 U.S.C. 450b).
            ``(4) Native hawaiian.--The term `Native Hawaiian' means any 
        individual any of whose ancestors were natives, prior to 1778, 
        of the area which now comprises the State of Hawaii.
            ``(5) Native hawaiian organization.--The term `Native 
        Hawaiian organization' has the meaning given the term in section 
        9212 of the Native Hawaiian Education Act (20 U.S.C. 7912).

    ``(b) Program Authorized.--
            ``(1) Authority.--From <<NOTE: Grants. Contracts.>> funds 
        reserved under section 111(a)(1)(B)(i), the Secretary shall make 
        grants to and enter into contracts with Indian tribes, tribal 
        organizations, and Alaska Native entities to carry out the 
        authorized programs described in subsection (d), except that 
        such grants or contracts shall not be awarded to secondary 
        school programs in Bureau funded schools.
            ``(2) Indian tribes and tribal organizations.--The grants or 
        contracts described in this section (other than in subsection 
        (i)) that are awarded to any Indian tribe or tribal organization 
        shall be subject to the terms and conditions of section 102 of 
        the Indian Self-Determination Act (25 U.S.C. 450f ) and shall be 
        conducted in accordance with the provisions of sections 4, 5, 
        and 6 of the Act of April 16, 1934, which are relevant to the 
        programs administered under this subsection.
            ``(3) Special authority relating to secondary schools 
        operated or supported by the bureau of indian affairs.--An 
        Indian tribe, a tribal organization, or an Alaska Native entity, 
        that receives funds through a grant made or contract entered 
        into under paragraph (1) may use the funds to provide assistance 
        to a secondary school operated or supported by the Bureau of 
        Indian Affairs to enable such school to carry out vocational and 
        technical education programs.
            ``(4) Matching.--If sufficient funding is available, the 
        Bureau of Indian Affairs shall expend an amount equal to the 
        amount made available under this subsection, relating to 
        programs for Indians, to pay a part of the costs of programs 
        funded under this subsection. During each fiscal year the Bureau 
        of Indian Affairs shall expend not less than the amount expended 
        during the prior fiscal year on vocational and technical 
        education programs, services, and technical activities 
        administered either directly by, or under contract with, the 
        Bureau of Indian Affairs, except that in no year shall funding 
        for such programs, services, and activities be provided from 
        accounts and programs that support other Indian education 
        programs. The Secretary and the Assistant Secretary of the 
        Interior for Indian Affairs shall prepare jointly a plan for the 
        expenditure of funds made available and for the evaluation of 
        programs assisted under this subsection. Upon the completion of 
        a joint plan for the expenditure of the funds and the evaluation 
        of the programs, the Secretary shall assume responsibility for 
        the administration of the program, with the assistance and 
        consultation of the Bureau of Indian Affairs.
            ``(5) Regulations.--If the Secretary promulgates any 
        regulations applicable to subsection (b)(2), the Secretary 
        shall--

[[Page 112 STAT. 3096]]

                    ``(A) confer with, and allow for active 
                participation by, representatives of Indian tribes, 
                tribal organizations, and individual tribal members; and
                    ``(B) promulgate the regulations under subchapter 
                III of chapter 5 of title 5, United States Code, 
                commonly known as the ``Negotiated Rulemaking Act of 
                1990''.
            ``(6) Application.--Any Indian tribe, tribal organization, 
        or Bureau funded school eligible to receive assistance under 
        subsection (b) may apply individually or as part of a consortium 
        with another such Indian tribe, tribal organization, or Bureau 
        funded school.

    ``(c) Authorized Activities.--
            ``(1) Authorized programs.--Funds made available under this 
        section shall be used to carry out vocational and technical 
        education programs consistent with the purpose of this Act.
            ``(2) Stipends.--
                    ``(A) In general.--Funds received pursuant to grants 
                or contracts awarded under subsection (b) may be used to 
                provide stipends to students who are enrolled in 
                vocational and technical education programs and who have 
                acute economic needs which cannot be met through work-
                study programs.
                    ``(B) Amount.--Stipends described in subparagraph 
                (A) shall not exceed reasonable amounts as prescribed by 
                the Secretary.

    ``(d) Grant or Contract Application.--In order to receive a grant or 
contract under this section an organization, tribe, or entity described 
in subsection (b) shall submit an application to the Secretary that 
shall include an assurance that such organization, tribe, or entity 
shall comply with the requirements of this section.
    ``(e) Restrictions and Special Considerations.--The Secretary may 
not place upon grants awarded or contracts entered into under subsection 
(b) any restrictions relating to programs other than restrictions that 
apply to grants made to or contracts entered into with States pursuant 
to allotments under section 111(a). The Secretary, in awarding grants 
and entering into contracts under this paragraph, shall ensure that the 
grants and contracts will improve vocational and technical education 
programs, and shall give special consideration to--
            ``(1) programs that involve, coordinate with, or encourage 
        tribal economic development plans; and
            ``(2) applications from tribally controlled colleges or 
        universities that--
                    ``(A) are accredited or are candidates for 
                accreditation by a nationally recognized accreditation 
                organization as an institution of postsecondary 
                vocational and technical education; or
                    ``(B) operate vocational and technical education 
                programs that are accredited or are candidates for 
                accreditation by a nationally recognized accreditation 
                organization and issue certificates for completion of 
                vocational and technical education programs.

    ``(f ) Consolidation of Funds.--Each organization, tribe, or entity 
receiving assistance under this section may consolidate such assistance 
with assistance received from related programs in accordance with the 
provisions of the Indian Employment, Training and

[[Page 112 STAT. 3097]]

Related Services Demonstration Act of 1992 (25 U.S.C. 3401 et seq.).
    ``(g) Nonduplicative and Nonexclusive Services.--Nothing in this 
section shall be construed--
            ``(1) to limit the eligibility of any organization, tribe, 
        or entity described in subsection (b) to participate in any 
        activity offered by an eligible agency or eligible recipient 
        under this title; or
            ``(2) to preclude or discourage any agreement, between any 
        organization, tribe, or entity described in subsection (b) and 
        any eligible agency or eligible recipient, to facilitate the 
        provision of services by such eligible agency or eligible 
        recipient to the population served by such eligible agency or 
        eligible recipient.

    ``(h) Native Hawaiian Programs.--From the funds reserved pursuant to 
section 111(a)(1)(B)(ii), the Secretary shall award grants to or enter 
into contracts with organizations primarily serving and representing 
Native Hawaiians which are recognized by the Governor of the State of 
Hawaii to plan, conduct, and administer programs, or portions thereof, 
which are authorized by and consistent with the provisions of this 
section for the benefit of Native Hawaiians.

``SEC. 117. <<NOTE: 20 USC 2327.>> TRIBALLY CONTROLLED POSTSECONDARY 
            VOCATIONAL AND TECHNICAL INSTITUTIONS.

    ``(a) Grants Authorized.--The Secretary shall, subject to the 
availability of appropriations, make grants pursuant to this section to 
tribally controlled postsecondary vocational and technical institutions 
to provide basic support for the education and training of Indian 
students.
    ``(b) Use of Grants.--Amounts made available pursuant to this 
section shall be used for vocational and technical education programs.
    ``(c) Amount of Grants.--
            ``(1) In general.--If the sums appropriated for any fiscal 
        year for grants under this section are not sufficient to pay in 
        full the total amount which approved applicants are eligible to 
        receive under this section for such fiscal year, the Secretary 
        shall first allocate to each such applicant who received funds 
        under this part for the preceding fiscal year an amount equal to 
        100 percent of the product of the per capita payment for the 
        preceding fiscal year and such applicant's Indian student count 
        for the current program year, plus an amount equal to the actual 
        cost of any increase to the per capita figure resulting from 
        inflationary increases to necessary costs beyond the 
        institution's control.
            ``(2) Per capita determination.--For the purposes of 
        paragraph (1), the per capita payment for any fiscal year shall 
        be determined by dividing the amount available for grants to 
        tribally controlled postsecondary vocational and technical 
        institutions under this section for such program year by the sum 
        of the Indian student counts of such institutions for such 
        program year. The Secretary shall, on the basis of the most 
        accurate data available from the institutions, compute the 
        Indian student count for any fiscal year for which such count 
        was not used for the purpose of making allocations under this 
        section.

[[Page 112 STAT. 3098]]

    ``(d) Applications.--Any tribally controlled postsecondary 
vocational and technical institution that desires to receive a grant 
under this section shall submit an application to the Secretary in such 
manner and form as the Secretary may require.
    ``(e) Expenses.--
            ``(1) In general.--The Secretary shall, subject to the 
        availability of appropriations, provide for each program year to 
        each tribally controlled postsecondary vocational and technical 
        institution having an application approved by the Secretary, an 
        amount necessary to pay expenses associated with--
                    ``(A) the maintenance and operation of the program, 
                including development costs, costs of basic and special 
                instruction (including special programs for individuals 
                with disabilities and academic instruction), materials, 
                student costs, administrative expenses, boarding costs, 
                transportation, student services, daycare and family 
                support programs for students and their families 
                (including contributions to the costs of education for 
                dependents), and student stipends;
                    ``(B) capital expenditures, including operations and 
                maintenance, and minor improvements and repair, and 
                physical plant maintenance costs, for the conduct of 
                programs funded under this section; and
                    ``(C) costs associated with repair, upkeep, 
                replacement, and upgrading of the instructional 
                equipment.
            ``(2) Accounting.--Each institution receiving a grant under 
        this section shall provide annually to the Secretary an accurate 
        and detailed accounting of the institution's operating and 
        maintenance expenses and such other information concerning costs 
        as the Secretary may reasonably require.

    ``(f ) Other Programs.--
            ``(1) In general.--Except as specifically provided in this 
        Act, eligibility for assistance under this section shall not 
        preclude any tribally controlled postsecondary vocational and 
        technical institution from receiving Federal financial 
        assistance under any program authorized under the Higher 
        Education Act of 1965, or any other applicable program for the 
        benefit of institutions of higher education or vocational and 
        technical education.
            ``(2) Prohibition on alteration of grant amount.--The amount 
        of any grant for which tribally controlled postsecondary 
        vocational and technical institutions are eligible under this 
        section shall not be altered because of funds allocated to any 
        such institution from funds appropriated under the Act of 
        November 2, 1921 (commonly known as the `Snyder Act') (42 Stat. 
        208, chapter 115; 25 U.S.C. 13).
            ``(3) Prohibition on contract denial.--No tribally 
        controlled postsecondary vocational and technical institution 
        for which an Indian tribe has designated a portion of the funds 
        appropriated for the tribe from funds appropriated under the Act 
        of November 2, 1921, may be denied a contract for such portion 
        under the Indian Self-Determination and Education Assistance Act 
        (except as provided in that Act), or denied appropriate contract 
        support to administer such portion of the appropriated funds.

    ``(g) Needs Estimate and Report on Facilities and Facilities 
Improvement.--

[[Page 112 STAT. 3099]]

            ``(1) Needs estimate.--The Secretary shall, based on the 
        most accurate data available from the institutions and Indian 
        tribes whose Indian students are served under this section, and 
        in consideration of employment needs, economic development 
        needs, population training needs, and facilities needs, prepare 
        an actual budget needs estimate for each institution eligible 
        under this section for each subsequent program year, and submit 
        such budget needs estimate to Congress in such a timely manner 
        as will enable the appropriate committees of Congress to 
        consider such needs data for purposes of the uninterrupted flow 
        of adequate appropriations to such institutions. Such data shall 
        take into account the purposes and requirements of part A of 
        title IV of the Social Security Act.
            ``(2) Study of training and housing needs.--
                    ``(A) In general.--The Secretary shall conduct a 
                detailed study of the training, housing, and immediate 
                facilities needs of each institution eligible under this 
                section. The study shall include an examination of--
                          ``(i) training equipment needs;
                          ``(ii) housing needs of families whose heads 
                      of households are students and whose dependents 
                      have no alternate source of support while such 
                      heads of households are students; and
                          ``(iii) immediate facilities needs.
                    ``(B) Report.--The Secretary shall report to 
                Congress not later than July 1, 2000, on the results of 
                the study required by subparagraph (A).
                    ``(C) Contents.--The report required by subparagraph 
                (B) shall include the number, type, and cost of meeting 
                the needs described in subparagraph (A), and rank each 
                institution by relative need.
                    ``(D) Priority.--In conducting the study required by 
                subparagraph (A), the Secretary shall give priority to 
                institutions that are receiving assistance under this 
                section.
            ``(3) Long-term study of facilities.--
                    ``(A) In general.--The Secretary shall provide for 
                the conduct of a long-term study of the facilities of 
                each institution eligible for assistance under this 
                section.
                    ``(B) Contents.--The study required by subparagraph 
                (A) shall include a 5-year projection of training 
                facilities, equipment, and housing needs and shall 
                consider such factors as projected service population, 
                employment, and economic development forecasting, based 
                on the most current and accurate data available from the 
                institutions and Indian tribes affected.
                    ``(C) Submission.--The <<NOTE: Reports.>> Secretary 
                shall submit to Congress a detailed report on the 
                results of such study not later than the end of the 18-
                month period beginning on the date of enactment of this 
                Act.

    ``(h) Definitions.--In this section:
            ``(1) Indian.--The terms `Indian' and `Indian tribe' have 
        the meanings given the terms in section 2 of the Tribally 
        Controlled College or University Assistance Act of 1978.
            ``(2) Indian student count.--The term `Indian student count' 
        means a number equal to the total number of Indian students 
        enrolled in each tribally controlled postsecondary vocational 
        and technical institution, determined as follows:

[[Page 112 STAT. 3100]]

                    ``(A) Registrations.--The registrations of Indian 
                students as in effect on October 1 of each year.
                    ``(B) Summer term.--Credits or clock hours toward a 
                certificate earned in classes offered during a summer 
                term shall be counted toward the computation of the 
                Indian student count in the succeeding fall term.
                    ``(C) Admission criteria.--Credits or clock hours 
                toward a certificate earned in classes during a summer 
                term shall be counted toward the computation of the 
                Indian student count if the institution at which the 
                student is in attendance has established criteria for 
                the admission of such student on the basis of the 
                student's ability to benefit from the education or 
                training offered. The institution shall be presumed to 
                have established such criteria if the admission 
                procedures for such studies include counseling or 
                testing that measures the student's aptitude to 
                successfully complete the course in which the student 
                has enrolled. No credit earned by such student for 
                purposes of obtaining a secondary school degree or its 
                recognized equivalent shall be counted toward the 
                computation of the Indian student count.
                    ``(D) Determination of hours.--Indian students 
                earning credits in any continuing education program of a 
                tribally controlled postsecondary vocational and 
                technical institution shall be included in determining 
                the sum of all credit or clock hours.
                    ``(E) Continuing education.--Credits or clock hours 
                earned in a continuing education program shall be 
                converted to the basis that is in accordance with the 
                institution's system for providing credit for 
                participation in such programs.

    ``(i) Authorization of Appropriations.--There are authorized to be 
appropriated to carry out this section $4,000,000 for fiscal year 1999 
and each of the 4 succeeding fiscal years.

``SEC. 118. <<NOTE: 20 USC 2328.>> OCCUPATIONAL AND EMPLOYMENT 
            INFORMATION.

    ``(a) National Activities.--From funds appropriated under subsection 
(f ), the Secretary, in consultation with appropriate Federal agencies, 
is authorized--
            ``(1) to provide assistance to an entity to enable the 
        entity--
                    ``(A) to provide technical assistance to State 
                entities designated under subsection (b) to enable the 
                State entities to carry out the activities described in 
                subsection (b);
                    ``(B) to disseminate information that promotes the 
                replication of high quality practices described in 
                subsection (b);
                    ``(C) to develop and disseminate products and 
                services related to the activities described in 
                subsection (b); and
            ``(2) to award grants to States that designate State 
        entities in accordance with subsection (b) to enable the State 
        entities to carry out the State level activities described in 
        subsection (b).

    ``(b) State Level Activities.--In order for a State to receive a 
grant under this section, the eligible agency and the Governor of the 
State shall jointly designate an entity in the State--
            ``(1) to provide support for a career guidance and academic 
        counseling program designed to promote improved career and

[[Page 112 STAT. 3101]]

        education decisionmaking by individuals (especially in areas of 
        career information delivery and use);
            ``(2) to make available to students, parents, teachers, 
        administrators, and counselors, and to improve accessibility 
        with respect to, information and planning resources that relate 
        educational preparation to career goals and expectations;
            ``(3) to equip teachers, administrators, and counselors with 
        the knowledge and skills needed to assist students and parents 
        with career exploration, educational opportunities, and 
        education financing.
            ``(4) to assist appropriate State entities in tailoring 
        career-related educational resources and training for use by 
        such entities;
            ``(5) to improve coordination and communication among 
        administrators and planners of programs authorized by this Act 
        and by section 15 of the Wagner-Peyser Act at the Federal, 
        State, and local levels to ensure nonduplication of efforts and 
        the appropriate use of shared information and data; and
            ``(6) to provide ongoing means for customers, such as 
        students and parents, to provide comments and feedback on 
        products and services and to update resources, as appropriate, 
        to better meet customer requirements.

    ``(c) Nonduplication.--
            ``(1) Wagner-peyser act.--The State entity designated under 
        subsection (b) may use funds provided under subsection (b) to 
        supplement activities under section 15 of the Wagner-Peyser Act 
        to the extent such activities do not duplicate activities 
        assisted under such section.
            ``(2) Public law 105-220.--None of the functions and 
        activities assisted under this section shall duplicate the 
        functions and activities carried out under Public Law 105-220.

    ``(d) Funding Rule.--Of the amounts appropriated to carry out this 
section, the Federal entity designated under subsection (a) shall use--
            ``(1) not less than 85 percent to carry out subsection (b); 
        and
            ``(2) not more than 15 percent to carry out subsection (a).

    ``(e) Report.--The Secretary, in consultation with appropriate 
Federal agencies, shall prepare and submit to the appropriate committees 
of Congress, an annual report that includes--
            ``(1) an identification of activities assisted under this 
        section during the prior program year;
            ``(2) a description of the specific products and services 
        assisted under this section that were delivered in the prior 
        program year; and
            ``(3) an assessment of the extent to which States have 
        effectively coordinated activities assisted under this section 
        with activities authorized under section 15 of the Wagner-Peyser 
        Act.

    ``(f ) Authorization of Appropriations.--There are authorized to be 
appropriated to carry out this section such sums as may be necessary for 
each of the fiscal years 1999 through 2003.

[[Page 112 STAT. 3102]]

                       ``PART B--STATE PROVISIONS

``SEC. 121. <<NOTE: 20 USC 2341.>> STATE ADMINISTRATION.

    ``(a) Eligible Agency Responsibilities.--
            ``(1) In general.--The responsibilities of an eligible 
        agency under this title shall include--
                    ``(A) coordination of the development, submission, 
                and implementation of the State plan, and the evaluation 
                of the program, services, and activities assisted under 
                this title, including preparation for nontraditional 
                training and employment;
                    ``(B) consultation with the Governor and appropriate 
                agencies, groups, and individuals including parents, 
                students, teachers, representatives of businesses, labor 
                organizations, eligible recipients, State and local 
                officials, and local program administrators, involved in 
                the planning, administration, evaluation, and 
                coordination of programs funded under this title;
                    ``(C) convening and meeting as an eligible agency 
                (consistent with State law and procedure for the conduct 
                of such meetings) at such time as the eligible agency 
                determines necessary to carry out the eligible agency's 
                responsibilities under this title, but not less than 
                four times annually; and
                    ``(D) the adoption of such procedures as the 
                eligible agency considers necessary to--
                          ``(i) implement State level coordination with 
                      the activities undertaken by the State boards 
                      under section 111 of Public Law 105-220; and
                          ``(ii) make available to the service delivery 
                      system under section 121 of Public Law 105-220 
                      within the State a listing of all school dropout, 
                      postsecondary, and adult programs assisted under 
                      this title.
            ``(2) Exception.--Except with respect to the 
        responsibilities set forth in paragraph (1), the eligible agency 
        may delegate any of the other responsibilities of the eligible 
        agency that involve the administration, operation, supervision 
        of activities assisted under this title, in whole or in part, to 
        one or more appropriate State agencies.

``SEC. 122. <<NOTE: 20 USC 2342.>> STATE PLAN.

    ``(a) State Plan.--
            ``(1) In general.--Each eligible agency desiring assistance 
        under this title for any fiscal year shall prepare and submit to 
        the Secretary a State plan for a 5-year period, together with 
        such annual revisions as the eligible agency determines to be 
        necessary.
            ``(2) Revisions.--Each eligible agency--
                    ``(A) may submit such annual revisions of the State 
                plan to the Secretary as the eligible agency determines 
                to be necessary; and
                    ``(B) shall, after the second year of the 5 year 
                State plan, conduct a review of activities assisted 
                under this title and submit any revisions of the State 
                plan that the eligible agency determines necessary to 
                the Secretary.
            ``(3) Hearing process.--The eligible agency shall conduct 
        public hearings in the State, after appropriate and sufficient

[[Page 112 STAT. 3103]]

        notice, for the purpose of affording all segments of the public 
        and interested organizations and groups (including employers, 
        labor organizations, and parents), an opportunity to present 
        their views and make recommendations regarding the State plan. A 
        summary of such recommendations and the eligible agency's 
        response to such recommendations shall be included in the State 
        plan.

    ``(b) Plan Development.--
            ``(1) In general.--The eligible agency shall develop the 
        State plan in consultation with teachers, eligible recipients, 
        parents, students, interested community members, representatives 
        of special populations, representatives of business and 
        industry, and representatives of labor organizations in the 
        State, and shall consult the Governor of the State with respect 
        to such development.
            ``(2) Activities and procedures.--The eligible agency shall 
        develop effective activities and procedures, including access to 
        information needed to use such procedures, to allow the 
        individuals described in paragraph (1) to participate in State 
        and local decisions that relate to development of the State 
        plan.

    ``(c) Plan Contents.--The State plan shall include information 
that--
            ``(1) describes the vocational and technical education 
        activities to be assisted that are designed to meet or exceed 
        the State adjusted levels of performance, including a 
        description of--
                    ``(A) the secondary and postsecondary vocational and 
                technical education programs to be carried out, 
                including programs that will be carried out by the 
                eligible agency to develop, improve, and expand access 
                to quality, state-of-the-art technology in vocational 
                and technical education programs;
                    ``(B) the criteria that will be used by the eligible 
                agency in approving applications by eligible recipients 
                for funds under this title;
                    ``(C) how such programs will prepare vocational and 
                technical education students for opportunities in 
                postsecondary education or entry into high skill, high 
                wage jobs in current and emerging occupations; and
                    ``(D) how funds will be used to improve or develop 
                new vocational and technical education courses;
            ``(2) describes how comprehensive professional development 
        (including initial teacher preparation) for vocational and 
        technical, academic, guidance, and administrative personnel will 
        be provided;
            ``(3) describes how the eligible agency will actively 
        involve parents, teachers, local businesses (including small- 
        and medium-sized businesses), and labor organizations in the 
        planning, development, implementation, and evaluation of such 
        vocational and technical education programs;
            ``(4) describes how funds received by the eligible agency 
        through the allotment made under section 111 will be allo- 
        cated--

[[Page 112 STAT. 3104]]

                    ``(A) among secondary school vocational and 
                technical education, or postsecondary and adult 
                vocational and technical education, or both, including 
                the rationale for such allocation; and
                    ``(B) among any consortia that will be formed among 
                secondary schools and eligible institutions, and how 
                funds will be allocated among the members of the 
                consortia, including the rationale for such allocation;
            ``(5) describes how the eligible agency will--
                    ``(A) improve the academic and technical skills of 
                students participating in vocational and technical 
                education programs, including strengthening the 
                academic, and vocational and technical, components of 
                vocational and technical education programs through the 
                integration of academics with vocational and technical 
                education to ensure learning in the core academic, and 
                vocational and technical, subjects, and provide students 
                with strong experience in, and understanding of, all 
                aspects of an industry; and
                    ``(B) ensure that students who participate in such 
                vocational and technical education programs are taught 
                to the same challenging academic proficiencies as are 
                taught to all other students;
            ``(6) describes how the eligible agency will annually 
        evaluate the effectiveness of such vocational and technical 
        education programs, and describe, to the extent practicable, how 
        the eligible agency is coordinating such programs to ensure 
        nonduplication with other existing Federal programs;
            ``(7) describes the eligible agency's program strategies for 
        special populations;
            ``(8) describes how individuals who are members of the 
        special populations--
                    ``(A) will be provided with equal access to 
                activities assisted under this title;
                    ``(B) will not be discriminated against on the basis 
                of their status as members of the special populations; 
                and
                    ``(C) will be provided with programs designed to 
                enable the special populations to meet or exceed State 
                adjusted levels of performance, and prepare special 
                populations for further learning and for high skill, 
                high wage careers;
            ``(9) describe what steps the eligible agency shall take to 
        involve representatives of eligible recipients in the 
        development of the State adjusted levels of performance;
            ``(10) provides assurances that the eligible agency will 
        comply with the requirements of this title and the provisions of 
        the State plan, including the provision of a financial audit of 
        funds received under this title which may be included as part of 
        an audit of other Federal or State programs;
            ``(11) provides assurances that none of the funds expended 
        under this title will be used to acquire equipment (including 
        computer software) in any instance in which such acquisition 
        results in a direct financial benefit to any organization 
        representing the interests of the purchasing entity, the 
        employees of the purchasing entity, or any affiliate of such an 
        organization;
            ``(12) describes how the eligible agency will report data 
        relating to students participating in vocational and technical 
        education in order to adequately measure the progress of the 
        students, including special populations;

[[Page 112 STAT. 3105]]

            ``(13) describes how the eligible agency will adequately 
        address the needs of students in alternative education programs, 
        if appropriate;
            ``(14) describes how the eligible agency will provide local 
        educational agencies, area vocational and technical education 
        schools, and eligible institutions in the State with technical 
        assistance;
            ``(15) describes how vocational and technical education 
        relates to State and regional occupational opportunities;
            ``(16) describes the methods proposed for the joint planning 
        and coordination of programs carried out under this title with 
        other Federal education programs;
            ``(17) describes how funds will be used to promote 
        preparation for nontraditional training and employment;
            ``(18) describes how funds will be used to serve individuals 
        in State correctional institutions;
            ``(19) describes how funds will be used effectively to link 
        secondary and postsecondary education;
            ``(20) describes how the eligible agency will ensure that 
        the data reported to the eligible agency from local educational 
        agencies and eligible institutions under this title and the data 
        the eligible agency reports to the Secretary are complete, 
        accurate, and reliable; and
            ``(21) contains the description and information specified in 
        sections 112(b)(8) and 121(c) of Public Law 105-220 concerning 
        the provision of services only for postsecondary students and 
        school dropouts.

    ``(d) Plan Option.--The eligible agency may fulfill the requirements 
of subsection (a) by submitting a plan under section 501 of Public Law 
105-220.
    ``(e) Plan Approval.--
            ``(1) In general.--The Secretary shall approve a State plan, 
        or a revision to an approved State plan, unless the Secretary 
        determines that--
                    ``(A) the State plan, or revision, respectively, 
                does not meet the requirements of this section; or
                    ``(B) the State's levels of performance on the core 
                indicators of performance consistent with section 113 
                are not sufficiently rigorous to meet the purpose of 
                this Act.
            ``(2) Disapproval.--The Secretary shall not finally 
        disapprove a State plan, except after giving the eligible agency 
        notice and an opportunity for a hearing.
            ``(3) Consultation.--The eligible agency shall develop the 
        portion of each State plan relating to the amount and uses of 
        any funds proposed to be reserved for adult vocational and 
        technical education, postsecondary vocational and technical 
        education, tech-prep education, and secondary vocational and 
        technical education after consultation with the State agency 
        responsible for supervision of community colleges, technical 
        institutes, or other 2-year postsecondary institutions primarily 
        engaged in providing postsecondary vocational and technical 
        education, and the State agency responsible for secondary 
        education. If a State agency finds that a portion of the final 
        State plan is objectionable, the State agency shall file such 
        objections with the eligible agency. The eligible agency shall 
        respond to any objections of the State agency in the State plan 
        submitted to the Secretary.

[[Page 112 STAT. 3106]]

            ``(4) Timeframe.--A State plan shall be deemed approved by 
        the Secretary if the Secretary has not responded to the eligible 
        agency regarding the State plan within 90 days of the date the 
        Secretary receives the State plan.

    ``(f ) Transition.--This section shall be subject to section 4 for 
fiscal year 1999 only, with respect to activities under this section.

``SEC. 123. <<NOTE: 20 USC 2343.>> IMPROVEMENT PLANS.

    ``(a) State Program Improvement Plan.--If a State fails to meet the 
State adjusted levels of performance described in the report submitted 
under section 113(c), the eligible agency shall develop and implement a 
program improvement plan in consultation with appropriate agencies, 
individuals, and organizations for the first program year succeeding the 
program year in which the eligible agency failed to meet the State 
adjusted levels of performance, in order to avoid a sanction under 
subsection (d).
    ``(b) Local Evaluation.--Each eligible agency shall evaluate 
annually, using the State adjusted levels of performance, the vocational 
and technical education activities of each eligible recipient receiving 
funds under this title.
    ``(c) Local Improvement Plan.--
            ``(1) In general.--If, after reviewing the evaluation, the 
        eligible agency determines that an eligible recipient is not 
        making substantial progress in achieving the State adjusted 
        levels of performance, the eligible agency shall--
                    ``(A) conduct an assessment of the educational needs 
                that the eligible recipient shall address to overcome 
                local performance deficiencies;
                    ``(B) enter into an improvement plan based on the 
                results of the assessment, which plan shall include 
                instructional and other programmatic innovations of 
                demonstrated effectiveness, and where necessary, 
                strategies for appropriate staffing and staff 
                development; and
                    ``(C) conduct regular evaluations of the progress 
                being made toward reaching the State adjusted levels of 
                performance.
            ``(2) Consultation.--The eligible agency shall conduct the 
        activities described in paragraph (1) in consultation with 
        teachers, parents, other school staff, appropriate agencies, and 
        other appropriate individuals and organizations.

    ``(d) Sanctions.--
            ``(1) Technical assistance.--If the Secretary determines 
        that an eligible agency is not properly implementing the 
        eligible agency's responsibilities under section 122, or is not 
        making substantial progress in meeting the purpose of this Act, 
        based on the State adjusted levels of performance, the Secretary 
        shall work with the eligible agency to implement improvement 
        activities consistent with the requirements of this Act.
            ``(2) Failure.--If an eligible agency fails to meet the 
        State adjusted levels of performance, has not implemented an 
        improvement plan as described in paragraph (1), has shown no 
        improvement within 1 year after implementing an improvement plan 
        as described in paragraph (1), or has failed to meet the State 
        adjusted levels of performance for 2 or more consecutive years, 
        the Secretary may, after notice and opportunity for a hearing, 
        withhold from the eligible agency all, or a portion

[[Page 112 STAT. 3107]]

        of, the eligible agency's allotment under this title. The 
        Secretary may waive the sanction under this paragraph due to 
        exceptional or uncontrollable circumstances such as a natural 
        disaster or a precipitous and unforeseen decline in the 
        financial resources of the State.
            ``(3) Funds resulting from reduced allotments.--
                    ``(A) In general.--The Secretary shall use funds 
                withheld under paragraph (2), for a State served by an 
                eligible agency, to provide (through alternative 
                arrangements) services and activities within the State 
                to meet the purpose of this Act.
                    ``(B) Redistribution.--If the Secretary cannot 
                satisfactorily use funds withheld under paragraph (2), 
                then the amount of funds retained by the Secretary as a 
                result of a reduction in an allotment made under 
                paragraph (2) shall be redistributed to other eligible 
                agencies in accordance with section 111.

``SEC. 124. <<NOTE: 20 USC 2344.>> STATE LEADERSHIP ACTIVITIES.

    ``(a) General Authority.--From amounts reserved under section 
112(a)(2), each eligible agency shall conduct State leadership 
activities.
    ``(b) Required Uses of Funds.--The State leadership activities 
described in subsection (a) shall include--
            ``(1) an assessment of the vocational and technical 
        education programs carried out with funds under this title that 
        includes an assessment of how the needs of special populations 
        are being met and how such programs are designed to enable 
        special populations to meet State adjusted levels of performance 
        and prepare the special populations for further learning or for 
        high skill, high wage careers;
            ``(2) developing, improving, or expanding the use of 
        technology in vocational and technical education that may 
        include--
                    ``(A) training of vocational and technical education 
                personnel to use state-of-the-art technology, that may 
                include distance learning;
                    ``(B) providing vocational and technical education 
                students with the academic, and vocational and technical 
                skills that lead to entry into the high technology and 
                telecommunications field; or
                    ``(C) encouraging schools to work with high 
                technology industries to offer voluntary internships and 
                mentoring programs;
            ``(3) professional development programs, including providing 
        comprehensive professional development (including initial 
        teacher preparation) for vocational and technical, academic, 
        guidance, and administrative personnel, that--
                    ``(A) will provide inservice and preservice training 
                in state-of-the-art vocational and technical education 
                programs and techniques, effective teaching skills based 
                on research, and effective practices to improve parental 
                and community involvement; and
                    ``(B) will help teachers and personnel to assist 
                students in meeting the State adjusted levels of 
                performance established under section 113;
                    ``(C) will support education programs for teachers 
                of vocational and technical education in public schools 
                and

[[Page 112 STAT. 3108]]

                other public school personnel who are involved in the 
                direct delivery of educational services to vocational 
                and technical education students to ensure that such 
                teachers stay current with the needs, expectations, and 
                methods of industry; and
                    ``(D) is integrated with the professional 
                development activities that the State carries out under 
                title II of the Elementary and Secondary Education Act 
                of 1965 (20 U.S.C. 6001 et seq.) and title II of the 
                Higher Education Act of 1965;
            ``(4) support for vocational and technical education 
        programs that improve the academic, and vocational and technical 
        skills of students participating in vocational and technical 
        education programs by strengthening the academic, and vocational 
        and technical components of such vocational and technical 
        education programs through the integration of academics with 
        vocational and technical education to ensure learning in the 
        core academic, and vocational and technical subjects;
            ``(5) providing preparation for nontraditional training and 
        employment;
            ``(6) supporting partnerships among local educational 
        agencies, institutions of higher education, adult education 
        providers, and, as appropriate, other entities, such as 
        employers, labor organizations, parents, and local partnerships, 
        to enable students to achieve State academic standards, and 
        vocational and technical skills;
            ``(7) serving individuals in State institutions, such as 
        State correctional institutions and institutions that serve 
        individuals with disabilities; and
            ``(8) support for programs for special populations that lead 
        to high skill, high wage careers.

    ``(c) Permissible Uses of Funds.--The leadership activities 
described in subsection (a) may include--
            ``(1) technical assistance for eligible recipients;
            ``(2) improvement of career guidance and academic counseling 
        programs that assist students in making informed academic, and 
        vocational and technical education decisions;
            ``(3) establishment of agreements between secondary and 
        postsecondary vocational and technical education programs in 
        order to provide postsecondary education and training 
        opportunities for students participating in such vocational and 
        technical education programs, such as tech-prep programs;
            ``(4) support for cooperative education;
            ``(5) support for vocational and technical student 
        organizations, especially with respect to efforts to increase 
        the participation of students who are members of special 
        populations;
            ``(6) support for public charter schools operating secondary 
        vocational and technical education programs;
            ``(7) support for vocational and technical education 
        programs that offer experience in, and understanding of, all 
        aspects of an industry for which students are preparing to 
        enter;
            ``(8) support for family and consumer sciences programs;
            ``(9) support for education and business partnerships;
            ``(10) support to improve or develop new vocational and 
        technical education courses;

[[Page 112 STAT. 3109]]

            ``(11) providing vocational and technical education programs 
        for adults and school dropouts to complete their secondary 
        school education; and
            ``(12) providing assistance to students, who have 
        participated in services and activities under this title, in 
        finding an appropriate job and continuing their education.

    ``(d) Restriction on Uses of Funds.--An eligible agency that 
receives funds under section 112(a)(2) may not use any of such funds for 
administrative costs.

                       ``PART C--LOCAL PROVISIONS

``SEC. 131. <<NOTE: 20 USC 2351.>> DISTRIBUTION OF FUNDS TO SECONDARY 
            SCHOOL PROGRAMS.

    ``(a) Distribution for Fiscal Year 1999.--Except as provided in 
section 133 and as otherwise provided in this section, each eligible 
agency shall distribute the portion of the funds made available under 
section 112(a)(1) to carry out this section for fiscal year 1999 to 
local educational agencies within the State as follows:
            ``(1) Seventy percent.--From 70 percent of such portion, 
        each local educational agency shall be allocated an amount that 
        bears the same relationship to such 70 percent as the amount 
        such local educational agency was allocated under section 1124 
        of the Elementary and Secondary Education Act of 1965 (20 U.S.C. 
        6333) for the preceding fiscal year bears to the total amount 
        received under such section by all local educational agencies in 
        the State for such preceding fiscal year.
            ``(2) Twenty percent.--From 20 percent of such portion, each 
        local educational agency shall be allocated an amount that bears 
        the same relationship to such 20 percent as the number of 
        students with disabilities who have individualized education 
        programs under section 614(d) of the Individuals with 
        Disabilities Education Act (20 U.S.C. 1414(d)) served by such 
        local educational agency for the preceding fiscal year bears to 
        the total number of such students served by all local 
        educational agencies in the State for such preceding fiscal 
        year.
            ``(3) Ten percent.--From 10 percent of such portion, each 
        local educational agency shall be allocated an amount that bears 
        the same relationship to such 10 percent as the number of 
        students enrolled in schools and adults enrolled in training 
        programs under the jurisdiction of such local educational agency 
        for the preceding fiscal year bears to the number of students 
        enrolled in schools and adults enrolled in training programs 
        under the jurisdiction of all local educational agencies in the 
        State for such preceding fiscal year.

    ``(b) Special Distribution Rules for Succeeding Fiscal Years.--
Except as provided in section 133 and as otherwise provided in this 
section, each eligible agency shall distribute the portion of funds made 
available under section 112(a)(1) to carry out this section for fiscal 
year 2000 and succeeding fiscal years to local educational agencies 
within the State as follows:
            ``(1) 30 percent.--30 percent shall be allocated to such 
        local educational agencies in proportion to the number of 
        individuals aged 15 through 19, inclusive, who reside in the 
        school district served by such local educational agency for the 
        preceding fiscal year compared to the total number of such 
        individuals who reside in the school districts served by all

[[Page 112 STAT. 3110]]

        local educational agencies in the State for such preceding 
        fiscal year.
            ``(2) 70 percent.--70 percent shall be allocated to such 
        local educational agencies in proportion to the number of 
        individuals aged 15 through 19, inclusive, who reside in the 
        school district served by such local educational agency from 
        families with incomes below the poverty line (as defined by the 
        Office of Management and Budget and revised annually in 
        accordance with section 673(2) of the Community Services Block 
        Grant Act (42 U.S.C. 9902(2))) applicable to a family of the 
        size involved for the fiscal year for which the determination is 
        made compared to the number of such individuals who reside in 
        the school districts served by all the local educational 
        agencies in the State for such preceding fiscal year.

    ``(c) Waiver for More Equitable Distribution.--The Secretary may 
waive the application of subsection (b) in the case of any eligible 
agency that submits to the Secretary an application for such a waiver 
that--
            ``(1) demonstrates that a proposed alternative formula more 
        effectively targets funds on the basis of poverty (as defined by 
        the Office of Management and Budget and revised annually in 
        accordance with section 673(2) of the Community Services Block 
        Grant Act (42 U.S.C. 9902(2)) to local educational agencies 
        within the State than the formula described in subsection (b); 
        and
            ``(2) includes a proposal for such an alternative formula.

    ``(d) Minimum Allocation.--
            ``(1) In general.--Except as provided in paragraph (2), a 
        local educational agency shall not receive an allocation under 
        subsection (a) unless the amount allocated to such agency under 
        subsection (a) is greater than $15,000. A local educational 
        agency may enter into a consortium with other local educational 
        agencies for purposes of meeting the minimum allocation 
        requirement of this paragraph.
            ``(2) Waiver.--The eligible agency shall waive the 
        application of paragraph (1) in any case in which the local 
        educational agency--
                    ``(A)(i) is located in a rural, sparsely populated 
                area, or
                    ``(ii) is a public charter school operating 
                secondary vocational and technical education programs; 
                and
                    ``(B) demonstrates that the local educational agency 
                is unable to enter into a consortium for purposes of 
                providing activities under this part.
            ``(3) Redistribution.--Any amounts that are not allocated by 
        reason of paragraph (1) or paragraph (2) shall be redistributed 
        to local educational agencies that meet the requirements of 
        paragraph (1) or (2) in accordance with the provisions of this 
        section.

    ``(e) Limited Jurisdiction Agencies.--
            ``(1) In general.--In applying the provisions of subsection 
        (a), no eligible agency receiving assistance under this title 
        shall allocate funds to a local educational agency that serves 
        only elementary schools, but shall distribute such funds to the 
        local educational agency or regional educational agency that 
        provides secondary school services to secondary school students 
        in the same attendance area.

[[Page 112 STAT. 3111]]

            ``(2) Special rule.--The amount to be allocated under 
        paragraph (1) to a local educational agency that has 
        jurisdiction only over secondary schools shall be determined 
        based on the number of students that entered such secondary 
        schools in the previous year from the elementary schools 
        involved.

    ``(f ) Allocations to Area Vocational and Technical Education 
Schools and Educational Service Agencies.--
            ``(1) In general.--Each eligible agency shall distribute the 
        portion of funds made available under section 112(a)(1) for any 
        fiscal year by such eligible agency for secondary school 
        vocational and technical education activities under this section 
        to the appropriate area vocational and technical education 
        school or educational service agency in any case in which the 
        area vocational and technical education school or educational 
        service agency, and the local educational agency concerned--
                    ``(A) have formed or will form a consortium for the 
                purpose of receiving funds under this section; or
                    ``(B) have entered into or will enter into a 
                cooperative arrangement for such purpose.
            ``(2) Allocation basis.--If an area vocational and technical 
        education school or educational service agency meets the 
        requirements of paragraph (1), then the amount that would 
        otherwise be distributed to the local educational agency shall 
        be allocated to the area vocational and technical education 
        school, the educational service agency, and the local 
        educational agency based on each school, agency or entity's 
        relative share of students who are attending vocational and 
        technical education programs (based, if practicable, on the 
        average enrollment for the preceding 3 years;
            ``(3) Appeals procedure.--The eligible agency shall 
        establish an appeals procedure for resolution of any dispute 
        arising between a local educational agency and an area 
        vocational and technical education school or an educational 
        service agency with respect to the allocation procedures 
        described in this section, including the decision of a local 
        educational agency to leave a consortium or terminate a 
        cooperative arrangement.

    ``(g) Consortium Requirements.--
            ``(1) Alliance.--Any local educational agency receiving an 
        allocation that is not sufficient to conduct a program which 
        meets the requirements of section 135 is encouraged to--
                    ``(A) <<NOTE: Contracts.>> form a consortium or 
                enter into a cooperative agreement with an area 
                vocational and technical education school or educational 
                service agency offering programs that meet the 
                requirements of section 135;
                    ``(B) transfer such allocation to the area 
                vocational and technical education school or educational 
                service agency; and
                    ``(C) operate programs that are of sufficient size, 
                scope, and quality to be effective.
            ``(2) Funds to consortium.--Funds allocated to a consortium 
        formed to meet the requirements of this paragraph shall be used 
        only for purposes and programs that are mutually beneficial to 
        all members of the consortium and can be used only for programs 
        authorized under this title. Such funds may not be reallocated 
        to individual members of the consortium for purposes or programs 
        benefiting only one member of the consortium.

[[Page 112 STAT. 3112]]

    ``(h) Data.--The Secretary shall collect information from eligible 
agencies regarding the specific dollar allocations made available by the 
eligible agency for vocational and technical education programs under 
subsections (a), (b), (c), and (d) and how these allocations are 
distributed to local educational agencies, area vocational and technical 
education schools, and educational service agencies, within the State in 
accordance with this section.
    ``(i) Special Rule.--Each eligible agency distributing funds under 
this section shall treat a secondary school funded by the Bureau of 
Indian Affairs within the State as if such school were a local 
educational agency within the State for the purpose of receiving a 
distribution under this section.

``SEC. 132. <<NOTE: 20 USC 2352.>> DISTRIBUTION OF FUNDS FOR 
            POSTSECONDARY VOCATIONAL AND TECHNICAL EDUCATION PROGRAMS.

    ``(a) Allocation.--
            ``(1) In general.--Except as provided in subsections (b) and 
        (c) and section 133, each eligible agency shall distribute the 
        portion of the funds made available under section 112(a)(1) to 
        carry out this section for any fiscal year to eligible 
        institutions or consortia of eligible institutions within the 
        State.
            ``(2) Formula.--Each eligible institution or consortium of 
        eligible institutions shall be allocated an amount that bears 
        the same relationship to the portion of funds made available 
        under section 112(a)(1) to carry out this section for any fiscal 
        year as the sum of the number of individuals who are Federal 
        Pell Grant recipients and recipients of assistance from the 
        Bureau of Indian Affairs enrolled in programs meeting the 
        requirements of section 135 offered by such institution or 
        consortium in the preceding fiscal year bears to the sum of the 
        number of such recipients enrolled in such programs within the 
        State for such year.
            ``(3) Consortium requirements.--
                    ``(A) In general.--In order for a consortium of 
                eligible institutions described in paragraph (2) to 
                receive assistance pursuant to such paragraph, such 
                consortium shall operate joint projects that--
                          ``(i) provide services to all postsecondary 
                      institutions participating in the consortium; and
                          ``(ii) are of sufficient size, scope, and 
                      quality to be effective.
                    ``(B) Funds to consortium.--Funds allocated to a 
                consortium formed to meet the requirements of this 
                section shall be used only for purposes and programs 
                that are mutually beneficial to all members of the 
                consortium and shall be used only for programs 
                authorized under this title. Such funds may not be 
                reallocated to individual members of the consortium for 
                purposes or programs benefiting only one member of the 
                consortium.
            ``(4) Waiver.--The eligible agency may waive the application 
        of paragraph (3)(A)(i) in any case in which the eligible 
        institution is located in a rural, sparsely populated area.

    ``(b) Waiver for More Equitable Distribution.--The Secretary may 
waive the application of subsection (a) if an eligible agency submits to 
the Secretary an application for such a waiver that--

[[Page 112 STAT. 3113]]

            ``(1) demonstrates that the formula described in subsection 
        (a) does not result in a distribution of funds to the eligible 
        institutions or consortia within the State that have the highest 
        numbers of economically disadvantaged individuals and that an 
        alternative formula will result in such a distribution; and
            ``(2) includes a proposal for such an alternative formula.

    ``(c) Minimum Grant Amount.--
            ``(1) In general.--No institution or consortium shall 
        receive an allocation under this section in an amount that is 
        less than $50,000.
            ``(2) Redistribution.--Any amounts that are not distributed 
        by reason of paragraph (1) shall be redistributed to eligible 
        institutions or consortia in accordance with this section.

``SEC. 133. <<NOTE: 20 USC 2353.>> SPECIAL RULES FOR VOCATIONAL AND 
            TECHNICAL EDUCATION.

    ``(a) Special Rule for Minimal Allocation.--
            ``(1) General authority.--Notwithstanding the provisions of 
        sections 131 and 132 and in order to make a more equitable 
        distribution of funds for programs serving the areas of greatest 
        economic need, for any program year for which a minimal amount 
        is made available by an eligible agency for distribution under 
        section 131 or 132, such State may distribute such minimal 
        amount for such year--
                    ``(A) on a competitive basis; or
                    ``(B) through any alternative method determined by 
                the State.
            ``(2) Minimal amount.--For purposes of this section, the 
        term `minimal amount' means not more than 15 percent of the 
        total amount made available for distribution under section 
        112(a)(1).

    ``(b) Redistribution.--
            ``(1) In general.--In any academic year that an eligible 
        recipient does not expend all of the amounts the eligible 
        recipient is allocated for such year under section 131 or 132, 
        such eligible recipient shall return any unexpended amounts to 
        the eligible agency to be reallocated under section 131 or 132, 
        as appropriate.
            ``(2) Redistribution of amounts returned late in an academic 
        year.--In any academic year in which amounts are returned to the 
        eligible agency under section 131 or 132 and the eligible agency 
        is unable to reallocate such amounts according to such sections 
        in time for such amounts to be expended in such academic year, 
        the eligible agency shall retain such amounts for distribution 
        in combination with amounts provided under section 112(a)(1) for 
        the following academic year.

    ``(c) Construction.--Nothing in section 131 or 132 shall be 
construed--
            ``(1) to prohibit a local educational agency or a consortium 
        thereof that receives assistance under section 131, from working 
        with an eligible institution or consortium thereof that receives 
        assistance under section 132, to carry out secondary school 
        vocational and technical education programs in accordance with 
        this title;
            ``(2) to prohibit an eligible institution or consortium 
        thereof that receives assistance under section 132, from working 
        with a local educational agency or consortium thereof that 
        receives

[[Page 112 STAT. 3114]]

        assistance under section 131, to carry out postsecondary and 
        adult vocational and technical education programs in accordance 
        with this title; or
            ``(3) to require a charter school, that provides vocational 
        and technical education programs and is considered a local 
        educational agency under State law, to jointly establish the 
        charter school's eligibility for assistance under this title 
        unless the charter school is explicitly permitted to do so under 
        the State's charter school statute.

    ``(d) Consistent Application.--For purposes of this section, the 
eligible agency shall provide funds to charter schools offering 
vocational and technical education programs in the same manner as the 
eligible agency provides those funds to other schools. Such vocational 
and technical education programs within a charter school shall be of 
sufficient size, scope, and quality to be effective.

``SEC. 134. <<NOTE: 20 USC 2354.>> LOCAL PLAN FOR VOCATIONAL AND 
            TECHNICAL EDUCATION PROGRAMS.

    ``(a) Local Plan Required.--Any eligible recipient desiring 
financial assistance under this part shall, in accordance with 
requirements established by the eligible agency (in consultation with 
such other educational entities as the eligible agency determines to be 
appropriate) submit a local plan to the eligible agency. Such local plan 
shall cover the same period of time as the period of time applicable to 
the State plan submitted under section 122.
    ``(b) Contents.--The eligible agency shall determine requirements 
for local plans, except that each local plan shall--
            ``(1) describe how the vocational and technical education 
        programs required under section 135(b) will be carried out with 
        funds received under this title;
            ``(2) describe how the vocational and technical education 
        activities will be carried out with respect to meeting State 
        adjusted levels of performance established under section 113;
            ``(3) describe how the eligible recipient will--
                    ``(A) improve the academic and technical skills of 
                students participating in vocational and technical 
                education programs by strengthening the academic, and 
                vocational and technical components of such programs 
                through the integration of academics with vocational and 
                technical education programs through a coherent sequence 
                of courses to ensure learning in the core academic, and 
                vocational and technical subjects;
                    ``(B) provide students with strong experience in and 
                understanding of all aspects of an industry; and
                    ``(C) ensure that students who participate in such 
                vocational and technical education programs are taught 
                to the same challenging academic proficiencies as are 
                taught for all other students;
            ``(4) describe how parents, students, teachers, 
        representatives of business and industry, labor organizations, 
        representatives of special populations, and other interested 
        individuals are involved in the development, implementation, and 
        evaluation of vocational and technical education programs 
        assisted under this title, and how such individuals and entities 
        are effectively informed about, and assisted in understanding, 
        the requirements of this title;

[[Page 112 STAT. 3115]]

            ``(5) provide assurances that the eligible recipient will 
        provide a vocational and technical education program that is of 
        such size, scope, and quality to bring about improvement in the 
        quality of vocational and technical education programs;
            ``(6) describe the process that will be used to 
        independently evaluate and continuously improve the performance 
        of the eligible recipient;
            ``(7) describe how the eligible recipient--
                    ``(A) will review vocational and technical education 
                programs, and identify and adopt strategies to overcome 
                barriers that result in lowering rates of access to or 
                lowering success in the programs, for special 
                populations; and
                    ``(B) will provide programs that are designed to 
                enable the special populations to meet the State 
                adjusted levels of performance;
            ``(8) describe how individuals who are members of the 
        special populations will not be discriminated against on the 
        basis of their status as members of the special populations;
            ``(9) describe how funds will be used to promote preparation 
        for nontraditional training and employment; and
            ``(10) describe how comprehensive professional development 
        (including initial teacher preparation) for vocational and 
        technical, academic, guidance, and administrative personnel will 
        be provided.

``SEC. 135. <<NOTE: 20 USC 2355.>> LOCAL USES OF FUNDS.

    ``(a) General Authority.--Each eligible recipient that receives 
funds under this part shall use such funds to improve vocational and 
technical education programs.
    ``(b) Requirements for Uses of Funds.--Funds made available to 
eligible recipients under this part shall be used to support vocational 
and technical education programs that--
            ``(1) strengthen the academic, and vocational and technical 
        skills of students participating in vocational and technical 
        education programs by strengthening the academic, and vocational 
        and technical components of such programs through the 
        integration of academics with vocational and technical education 
        programs through a coherent sequence of courses to ensure 
        learning in the core academic, and vocational and technical 
        subjects;
            ``(2) provide students with strong experience in and 
        understanding of all aspects of an industry;
            ``(3) develop, improve, or expand the use of technology in 
        vocational and technical education, which may include--
                    ``(A) training of vocational and technical education 
                personnel to use state-of-the-art technology, which may 
                include distance learning;
                    ``(B) providing vocational and technical education 
                students with the academic, and vocational and technical 
                skills that lead to entry into the high technology and 
                telecommunications field; or
                    ``(C) encouraging schools to work with high 
                technology industries to offer voluntary internships and 
                mentoring programs;
            ``(4) provide professional development programs to teachers, 
        counselors, and administrators, including--

[[Page 112 STAT. 3116]]

                    ``(A) inservice and preservice training in state-of-
                the-art vocational and technical education programs and 
                techniques, in effective teaching skills based on 
                research, and in effective practices to improve parental 
                and community involvement;
                    ``(B) support of education programs for teachers of 
                vocational and technical education in public schools and 
                other public school personnel who are involved in the 
                direct delivery of educational services to vocational 
                and technical education students, to ensure that such 
                teachers and personnel stay current with all aspects of 
                an industry;
                    ``(C) internship programs that provide business 
                experience to teachers; and
                    ``(D) programs designed to train teachers 
                specifically in the use and application of technology;
            ``(5) develop and implement evaluations of the vocational 
        and technical education programs carried out with funds under 
        this title, including an assessment of how the needs of special 
        populations are being met;
            ``(6) initiate, improve, expand, and modernize quality 
        vocational and technical education programs;
            ``(7) provide services and activities that are of sufficient 
        size, scope, and quality to be effective; and
            ``(8) link secondary vocational and technical education and 
        postsecondary vocational and technical education, including 
        implementing tech-prep programs.

    ``(c) Permissive.--Funds made available to an eligible recipient 
under this title may be used--
            ``(1) to involve parents, businesses, and labor 
        organizations as appropriate, in the design, implementation, and 
        evaluation of vocational and technical education programs 
        authorized under this title, including establishing effective 
        programs and procedures to enable informed and effective 
        participation in such programs;
            ``(2) to provide career guidance and academic counseling for 
        students participating in vocational and technical education 
        programs;
            ``(3) to provide work-related experience, such as 
        internships, cooperative education, school-based enterprises, 
        entrepreneurship, and job shadowing that are related to 
        vocational and technical education programs;
            ``(4) to provide programs for special populations;
            ``(5) for local education and business partnerships;
            ``(6) to assist vocational and technical student 
        organizations;
            ``(7) for mentoring and support services;
            ``(8) for leasing, purchasing, upgrading or adapting 
        equipment, including instructional aides;
            ``(9) for teacher preparation programs that assist 
        individuals who are interested in becoming vocational and 
        technical education instructors, including individuals with 
        experience in business and industry;
            ``(10) for improving or developing new vocational and 
        technical education courses;
            ``(11) to provide support for family and consumer sciences 
        programs;

[[Page 112 STAT. 3117]]

            ``(12) to provide vocational and technical education 
        programs for adults and school dropouts to complete their 
        secondary school education;
            ``(13) to provide assistance to students who have 
        participated in services and activities under this title in 
        finding an appropriate job and continuing their education;
            ``(14) to support nontraditional training and employment 
        activities; and
            ``(15) to support other vocational and technical education 
        activities that are consistent with the purpose of this Act.

    ``(d) Administrative Costs.--Each eligible recipient receiving funds 
under this part shall not use more than 5 percent of the funds for 
administrative costs associated with the administration of activities 
assisted under this section.

``TITLE <<NOTE: Tech-Prep Education Act.>> II--TECH-PREP EDUCATION

``SEC. 201. <<NOTE: 20 USC 2301 note.>> SHORT TITLE.

    ``This title may be cited as the `Tech-Prep Education Act'.

``SEC. 202. <<NOTE: 20 USC 2371.>> DEFINITIONS.

    ``(a) In this title:
            ``(1) Articulation agreement.--The term `articulation 
        agreement' means a written commitment to a program designed to 
        provide students with a nonduplicative sequence of progressive 
        achievement leading to degrees or certificates in a tech-prep 
        education program.
            ``(2) Community college.--The term `community college'--
                    ``(A) means an institution of higher education, as 
                defined in section 101 of the Higher Education Act of 
                1965, that provides not less than a 2-year program that 
                is acceptable for full credit toward a bachelor's 
                degree; and
                    ``(B) includes tribally controlled colleges or 
                universities.
            ``(3) Tech-prep program.--The term `tech-prep program' means 
        a program of study that--
                    ``(A) combines at a minimum 2 years of secondary 
                education (as determined under State law) with a minimum 
                of 2 years of postsecondary education in a 
                nonduplicative, sequential course of study;
                    ``(B) integrates academic, and vocational and 
                technical, instruction, and utilizes work-based and 
                worksite learning where appropriate and available;
                    ``(C) provides technical preparation in a career 
                field such as engineering technology, applied science, a 
                mechanical, industrial, or practical art or trade, 
                agriculture, health occupations, business, or applied 
                economics;
                    ``(D) builds student competence in mathematics, 
                science, reading, writing, communications, economics, 
                and workplace skills through applied, contextual 
                academics, and integrated instruction, in a coherent 
                sequence of courses;
                    ``(E) leads to an associate or a baccalaureate 
                degree or a postsecondary certificate in a specific 
                career field; and

[[Page 112 STAT. 3118]]

                    ``(F) leads to placement in appropriate employment 
                or to further education.

``SEC. 203. <<NOTE: 20 USC 2372.>> STATE ALLOTMENT AND APPLICATION.

    ``(a) In General.--For any fiscal year, the Secretary shall allot 
the amount made available under section 206 among the States in the same 
manner as funds are allotted to States under paragraph (2) of section 
111(a).
    ``(b) Payments to Eligible Agencies.--The Secretary shall make a 
payment in the amount of a State's allotment under subsection (a) to the 
eligible agency that serves the State and has an application approved 
under subsection (c).
    ``(c) State Application.--Each eligible agency desiring assistance 
under this title shall submit an application to the Secretary at such 
time, in such manner, and accompanied by such information as the 
Secretary may require.

``SEC. 204. <<NOTE: 20 USC 2373.>> TECH-PREP EDUCATION.

    ``(a) Grant Program Authorized.--
            ``(1) In general.--From amounts made available to each 
        eligible agency under section 203, the eligible agency, in 
        accordance with the provisions of this title, shall award 
        grants, on a competitive basis or on the basis of a formula 
        determined by the eligible agency, for tech-prep education 
        programs described in subsection (c). The grants shall be 
        awarded to consortia between or among--
                    ``(A) a local educational agency, an intermediate 
                educational agency or area vocational and technical 
                education school serving secondary school students, or a 
                secondary school funded by the Bureau of Indian Affairs; 
                and
                    ``(B)(i) a nonprofit institution of higher education 
                that offers--
                          ``(I) a 2-year associate degree program, or a 
                      2-year certificate program, and is qualified as 
                      institutions of higher education pursuant to 
                      section 102 of the Higher Education Act of 1965, 
                      including an institution receiving assistance 
                      under the Tribally Controlled College or 
                      University Assistance Act of 1978 (25 U.S.C. 1801 
                      et seq.) and a tribally controlled postsecondary 
                      vocational and technical institution; or
                          ``(II) a 2-year apprenticeship program that 
                      follows secondary instruction,
                if such nonprofit institution of higher education is not 
                prohibited from receiving assistance under part B of 
                title IV of the Higher Education Act of 1965 (20 U.S.C. 
                1071 et seq.) pursuant to the provisions of section 
                435(a)(3) of such Act (20 U.S.C. 1083(a)); or
                    ``(ii) a proprietary institution of higher education 
                that offers a 2-year associate degree program and is 
                qualified as an institution of higher education pursuant 
                to section 102 of the Higher Education Act of 1965, if 
                such proprietary institution of higher education is not 
                subject to a default management plan required by the 
                Secretary.
            ``(2) Special rule.--In addition, a consortium described in 
        paragraph (1) may include 1 or more--
                    ``(A) institutions of higher education that award a 
                baccalaureate degree; and
                    ``(B) employer or labor organizations.

[[Page 112 STAT. 3119]]

    ``(b) Duration.--Each grant recipient shall use amounts provided 
under the grant to develop and operate a 4- or 6-year tech-prep 
education program described in subsection (c).
    ``(c) Contents of Tech-Prep Program.--Each tech-prep program shall--
            ``(1) be carried out under an articulation agreement between 
        the participants in the consortium;
            ``(2) consist of at least 2 years of secondary school 
        preceding graduation and 2 years or more of higher education, or 
        an apprenticeship program of at least 2 years following 
        secondary instruction, with a common core of required 
        proficiency in mathematics, science, reading, writing, 
        communications, and technologies designed to lead to an 
        associate's degree or a postsecondary certificate in a specific 
        career field;
            ``(3) include the development of tech-prep programs for both 
        secondary and postsecondary, including consortium, participants 
        in the consortium that--
                    ``(A) meets academic standards developed by the 
                State;
                    ``(B) links secondary schools and 2-year 
                postsecondary institutions, and if possible and 
                practicable, 4-year institutions of higher education 
                through nonduplicative sequences of courses in career 
                fields, including the investigation of opportunities for 
                tech-prep secondary students to enroll concurrently in 
                secondary and postsecondary coursework;
                    ``(C) uses, if appropriate and available, work-based 
                or worksite learning in conjunction with business and 
                all aspects of an industry; and
                    ``(D) uses educational technology and distance 
                learning, as appropriate, to involve all the consortium 
                partners more fully in the development and operation of 
                programs;
            ``(4) include in-service training for teachers that--
                    ``(A) is designed to train vocational and technical 
                teachers to effectively implement tech-prep programs;
                    ``(B) provides for joint training for teachers in 
                the tech-prep consortium;
                    ``(C) is designed to ensure that teachers and 
                administrators stay current with the needs, 
                expectations, and methods of business and all aspects of 
                an industry;
                    ``(D) focuses on training postsecondary education 
                faculty in the use of contextual and applied curricula 
                and instruction; and
                    ``(E) provides training in the use and application 
                of technology;
            ``(5) include training programs for counselors designed to 
        enable counselors to more effectively--
                    ``(A) provide information to students regarding 
                tech-prep education programs;
                    ``(B) support student progress in completing tech-
                prep programs;
                    ``(C) provide information on related employment 
                opportunities;
                    ``(D) ensure that such students are placed in 
                appropriate employment; and
                    ``(E) stay current with the needs, expectations, and 
                methods of business and all aspects of an industry;

[[Page 112 STAT. 3120]]

            ``(6) provide equal access, to the full range of technical 
        preparation programs, to individuals who are members of special 
        populations, including the development of tech-prep program 
        services appropriate to the needs of special populations; and
            ``(7) provide for preparatory services that assist 
        participants in tech-prep programs.

    ``(d) Additional Authorized Activities.--Each tech-prep program 
may--
            ``(1) provide for the acquisition of tech-prep program 
        equipment;
            ``(2) acquire technical assistance from State or local 
        entities that have designed, established, and operated tech-prep 
        programs that have effectively used educational technology and 
        distance learning in the delivery of curricula and services and 
        in the articulation process; and
            ``(3) establish articulation agreements with institutions of 
        higher education, labor organizations, or businesses located 
        inside or outside the State and served by the consortium, 
        especially with regard to using distance learning and 
        educational technology to provide for the delivery of services 
        and programs.

``SEC. 205. <<NOTE: 20 USC 2374.>> CONSORTIUM APPLICATIONS.

    ``(a) In General.--Each consortium that desires to receive a grant 
under this title shall submit an application to the eligible agency at 
such time and in such manner as the eligible agency shall prescribe.
    ``(b) Plan.--Each application submitted under this section shall 
contain a 5-year plan for the development and implementation of tech-
prep programs under this title, which plan shall be reviewed after the 
second year of the plan.
    ``(c) Approval.--The eligible agency shall approve applications 
based on the potential of the activities described in the application to 
create an effective tech-prep program.
    ``(d) Special Consideration.--The eligible agency, as appropriate, 
shall give special consideration to applications that--
            ``(1) provide for effective employment placement activities 
        or the transfer of students to baccalaureate degree programs;
            ``(2) are developed in consultation with business, industry, 
        institutions of higher education, and labor organizations;
            ``(3) address effectively the issues of school dropout 
        prevention and reentry and the needs of special populations;
            ``(4) provide education and training in areas or skills in 
        which there are significant workforce shortages, including the 
        information technology industry; and
            ``(5) demonstrate how tech-prep programs will help students 
        meet high academic and employability competencies.

    ``(e) Equitable Distribution of Assistance.--In awarding grants 
under this title, the eligible agency shall ensure an equitable 
distribution of assistance between urban and rural consortium 
participants.

``SEC. 206. <<NOTE: 20 USC 2375.>> REPORT.

    ``Each eligible agency that receives a grant under this title 
annually shall prepare and submit to the Secretary a report on the 
effectiveness of the tech-prep programs assisted under this title, 
including a description of how grants were awarded within the State.

[[Page 112 STAT. 3121]]

``SEC. 207. <<NOTE: 20 USC 2376.>> DEMONSTRATION PROGRAM.

    ``(a) Demonstration Program Authorized.--From funds appropriated 
under subsection (e) for a fiscal year, the Secretary shall award grants 
to consortia described in section 204(a) to enable the consortia to 
carry out tech-prep education programs.
    ``(b) Program Contents.--Each tech-prep program referred to in 
subsection (a)--
            ``(1) shall--
                    ``(A) involve the location of a secondary school on 
                the site of a community college;
                    ``(B) involve a business as a member of the 
                consortium; and
                    ``(C) require the voluntary participation of 
                secondary school students in the tech-prep education 
                program; and
            ``(2) may provide summer internships at a business for 
        students or teachers.

    ``(c) Application.--Each consortium desiring a grant under this 
section shall submit an application to the Secretary at such time, in 
such manner and accompanied by such information as the Secretary may 
require.
    ``(d) Applicability.--The provisions of sections 203, 204, 205, and 
206 shall not apply to this section, except that--
            ``(1) the provisions of section 204(a) shall apply for 
        purposes of describing consortia eligible to receive assistance 
        under this section;
            ``(2) each tech-prep education program assisted under this 
        section shall meet the requirements of paragraphs (1), (2), 
        (3)(A), (3)(B), (3)(C), (3)(D), (4), (5), (6), and (7) of 
        section 204(c), except that such paragraph (3)(B) shall be 
        applied by striking `, and if possible and practicable, 4-year 
        institutions of higher education through nonduplicative 
        sequences of courses in career fields'; and
            ``(3) in awarding grants under this section, the Secretary 
        shall give special consideration to consortia submitting 
        applications under subsection (c) that meet the requirements of 
        paragraphs (1), (3), (4), and (5) of section 205(d), except that 
        such paragraph (1) shall be applied by striking `or the transfer 
        of students to baccalaureate degree programs'.

    ``(e) Authorization of Appropriations.--There is authorized to be 
appropriated to carry out this section $25,000,000 for fiscal year 1999 
and each of the 4 succeeding fiscal years.

``SEC. 208. <<NOTE: 20 USC 2377.>> AUTHORIZATION OF APPROPRIATIONS.

    ``There is authorized to be appropriated to carry out this title 
(other than section 207) such sums as may be necessary for fiscal year 
1999 and each of the 4 succeeding fiscal years.

                     ``TITLE III--GENERAL PROVISIONS

               ``PART A--FEDERAL ADMINISTRATIVE PROVISIONS

``SEC. 311. <<NOTE: 20 USC 2391.>> FISCAL REQUIREMENTS.

    ``(a) Supplement Not Supplant.--Funds made available under this Act 
for vocational and technical education activities shall supplement, and 
shall not supplant, non-Federal funds expended

[[Page 112 STAT. 3122]]

to carry out vocational and technical education activities and tech-prep 
activities.
    ``(b) Maintenance of Effort.--
            ``(1) Determination.--
                    ``(A) In general.--Except as provided in 
                subparagraphs (B) and (C), no payments shall be made 
                under this Act for any fiscal year to a State for 
                vocational and technical education programs or tech-prep 
                programs unless the Secretary determines that the fiscal 
                effort per student or the aggregate expenditures of such 
                State for vocational and technical education programs 
                for the fiscal year preceding the fiscal year for which 
                the determination is made, equaled or exceeded such 
                effort or expenditures for vocational and technical 
                education programs, for the second fiscal year preceding 
                the fiscal year for which the determination is made.
                    ``(B) Computation.--In computing the fiscal effort 
                or aggregate expenditures pursuant to subparagraph (A), 
                the Secretary shall exclude capital expenditures, 
                special one-time project costs, and the cost of pilot 
                programs.
                    ``(C) Decrease in federal support.--If the amount 
                made available for vocational and technical education 
                programs under this Act for a fiscal year is less than 
                the amount made available for vocational and technical 
                education programs under this Act for the preceding 
                fiscal year, then the fiscal effort per student or the 
                aggregate expenditures of a State required by 
                subparagraph (B) for such preceding fiscal year shall be 
                decreased by the same percentage as the percentage 
                decrease in the amount so made available.
            ``(2) Waiver.--The Secretary may waive the requirements of 
        this section, with respect to not more than 5 percent of 
        expenditures by any eligible agency for 1 fiscal year only, on 
        making a determination that such waiver would be equitable due 
        to exceptional or uncontrollable circumstances affecting the 
        ability of the eligible agency to meet such requirements, such 
        as a natural disaster or an unforeseen and precipitous decline 
        in financial resources. No level of funding permitted under such 
        a waiver may be used as the basis for computing the fiscal 
        effort or aggregate expenditures required under this section for 
        years subsequent to the year covered by such waiver. The fiscal 
        effort or aggregate expenditures for the subsequent years shall 
        be computed on the basis of the level of funding that would, but 
        for such waiver, have been required.

``SEC. 312. <<NOTE: 20 USC 2392.>> AUTHORITY TO MAKE PAYMENTS.

    ``Any authority to make payments or to enter into contracts under 
this Act shall be available only to such extent or in such amounts as 
are provided in advance in appropriation Acts.

``SEC. 313. <<NOTE: 20 USC 2393.>> CONSTRUCTION.

    ``Nothing in this Act shall be construed to permit, allow, 
encourage, or authorize any Federal control over any aspect of a 
private, religious, or home school, regardless of whether a home school 
is treated as a private school or home school under State law. This 
section shall not be construed to bar students attending private, 
religious, or home schools from participation in programs or services 
under this Act.

[[Page 112 STAT. 3123]]

``SEC. 314. <<NOTE: 20 USC 2394.>> VOLUNTARY SELECTION AND 
            PARTICIPATION.

    ``No funds made available under this Act shall be used--
            ``(1) to require any secondary school student to choose or 
        pursue a specific career path or major; and
            ``(2) to mandate that any individual participate in a 
        vocational and technical education program, including a 
        vocational and technical education program that requires the 
        attainment of a federally funded skill level, standard, or 
        certificate of mastery.

``SEC. 315. <<NOTE: 20 USC 2395.>> LIMITATION FOR CERTAIN STUDENTS.

    ``No funds received under this Act may be used to provide vocational 
and technical education programs to students prior to the seventh grade, 
except that equipment and facilities purchased with funds under this Act 
may be used by such students.

``SEC. 316. <<NOTE: 20 USC 2396.>> FEDERAL LAWS GUARANTEEING CIVIL 
            RIGHTS.

    ``Nothing in this Act shall be construed to be inconsistent with 
applicable Federal law prohibiting discrimination on the basis of race, 
color, sex, national origin, age, or disability in the provision of 
Federal programs or services.

``SEC. 317. <<NOTE: 20 USC 2397.>> AUTHORIZATION OF SECRETARY.

    ``For the purposes of increasing and expanding the use of technology 
in vocational and technical education instruction, including the 
training of vocational and technical education personnel as provided in 
this Act, the Secretary is authorized to receive and use funds collected 
by the Federal Government from fees for the use of property, rights-of-
way, and easements under the control of Federal departments and agencies 
for the placement of telecommunications services that are dependent, in 
whole or in part, upon the utilization of general spectrum rights for 
the transmission or reception of such services.

``SEC. 318. <<NOTE: 20 USC 2398.>> PARTICIPATION OF PRIVATE SCHOOL 
            PERSONNEL.

    ``An eligible agency or eligible recipient that uses funds under 
this Act for inservice and preservice vocational and technical education 
professional development programs for vocational and technical education 
teachers, administrators, and other personnel may, upon request, permit 
the participation in such programs of vocational and technical education 
teachers, administrators, and other personnel in nonprofit private 
schools offering vocational and technical education programs located in 
the geographical area served by such agency or recipient.

                ``PART B--STATE ADMINISTRATIVE PROVISIONS

``SEC. 321. <<NOTE: 20 USC 2411.>> JOINT FUNDING.

    ``(a) General Authority.--Funds made available to eligible agencies 
under this Act may be used to provide additional funds under an 
applicable program if--
            ``(1) such program otherwise meets the requirements of this 
        Act and the requirements of the applicable program;
            ``(2) such program serves the same individuals that are 
        served under this Act;

[[Page 112 STAT. 3124]]

            ``(3) such program provides services in a coordinated manner 
        with services provided under this Act; and
            ``(4) such funds are used to supplement, and not supplant, 
        funds provided from non-Federal sources.

    ``(b) Applicable Program.--For the purposes of this section, the 
term `applicable program' means any program under any of the following 
provisions of law:
            ``(1) Chapters 4 and 5 of subtitle B of title I of Public 
        Law 105-220.
            ``(2) The Wagner-Peyser Act.

    ``(c) Use of Funds as Matching Funds.--For the purposes of this 
section, the term `additional funds' does not include funds used as 
matching funds.

``SEC. 322. <<NOTE: 20 USC 2412.>> PROHIBITION ON USE OF FUNDS TO INDUCE 
            OUT-OF-STATE RELOCATION OF BUSINESSES.

    ``No funds provided under this Act shall be used for the purpose of 
directly providing incentives or inducements to an employer to relocate 
a business enterprise from one State to another State if such relocation 
will result in a reduction in the number of jobs available in the State 
where the business enterprise is located before such incentives or 
inducements are offered.

``SEC. 323. <<NOTE: 20 USC 2413.>> STATE ADMINISTRATIVE COSTS.

    ``(a) General Rule.--Except as provided in subsection (b), for each 
fiscal year for which an eligible agency receives assistance under this 
Act, the eligible agency shall provide, from non-Federal sources for the 
costs the eligible agency incurs for the administration of programs 
under this Act an amount that is not less than the amount provided by 
the eligible agency from non-Federal sources for such costs for the 
preceding fiscal year.
    ``(b) Exception.--If the amount made available for administration of 
programs under this Act for a fiscal year is less than the amount made 
available for administration of programs under this Act for the 
preceding fiscal year, the amount the eligible agency is required to 
provide from non-Federal sources for costs the eligible agency incurs 
for administration of programs under this Act shall be the same 
percentage as the amount made available for administration of programs 
under this Act.

``SEC. 324. <<NOTE: 20 USC 2414.>> LIMITATION ON FEDERAL REGULATIONS.

    ``The Secretary may issue regulations under this Act only to the 
extent necessary to administer and ensure compliance with the specific 
requirements of this Act.

``SEC. 325. <<NOTE: 20 USC 2415.>> STUDENT ASSISTANCE AND OTHER FEDERAL 
            PROGRAMS.

    ``(a) Attendance Costs Not Treated as Income or Resources.--The 
portion of any student financial assistance received under this Act that 
is made available for attendance costs described in subsection (b) shall 
not be considered as income or resources in determining eligibility for 
assistance under any other program funded in whole or in part with 
Federal funds.
    ``(b) Attendance Costs.--The attendance costs described in this 
subsection are--
            ``(1) tuition and fees normally assessed a student carrying 
        an academic workload as determined by the institution, and

[[Page 112 STAT. 3125]]

        including costs for rental or purchase of any equipment, 
        materials, or supplies required of all students in that course 
        of study; and
            ``(2) an allowance for books, supplies, transportation, 
        dependent care, and miscellaneous personal expenses for a 
        student attending the institution on at least a half-time basis, 
        as determined by the institution.

    ``(c) Costs of Vocational and Technical Education Services.--Funds 
made available under this Act may be used to pay for the costs of 
vocational and technical education services required in an 
individualized education plan developed pursuant to section 614(d) of 
the Individuals with Disabilities Education Act and services necessary 
to meet the requirements of section 504 of the Rehabilitation Act of 
1973 with respect to ensuring equal access to vocational and technical 
education.''.

SEC. 2. PROMOTING SCHOLAR-ATHLETE COMPETITIONS.

    Section 10104 of the Elementary and Secondary Education Act of 1965 
(20 U.S.C. 8004) is amended--
            (1) in subsection (a), by striking ``to be held in 1995'' 
        and inserting ``to be held in 1999''; and
            (2) in subsection (b)--
                    (A) in paragraph (4), by striking ``in the summer of 
                1995'' and inserting ``in the summer of 1999'';
                    (B) in paragraph (5), by striking ``in 1996 and 
                thereafter, as well as replicate such program''; and
                    (C) in paragraph (6), by striking ``1995'' and 
                inserting ``1999''.

SEC. 3. REFERENCES TO CARL D. PERKINS VOCATIONAL AND APPLIED TECHNOLOGY 
            EDUCATION ACT.

    (a) Immigration and Nationality Act.--Section 245A(h)(4)(C) of the 
Immigration and Nationality Act (8 U.S.C. 1255a(h)(4)(C)) is amended by 
striking ``Vocational Education Act of 1963'' and inserting ``Carl D. 
Perkins Vocational and Technical Education Act of 1998''.
    (b) National Defense Authorization Act.--Section 4461 of the 
National Defense Authorization Act for Fiscal Year 1993 (10 U.S.C. 1143 
note) is amended--
            (1) by striking paragraph (4); and
            (2) by redesignating paragraphs (5) and (6) as paragraphs 
        (4) and (5), respectively.

    (c) Elementary and Secondary Education Act of 1965.--The Elementary 
and Secondary Education Act of 1965 (20 U.S.C. 6301 et seq.) is 
amended--
            (1) in section 1114(b)(2)(C)(v) (20 U.S.C. 
        6314(b)(2)(C)(v)), by striking ``Carl D. Perkins Vocational and 
        Applied Technical Education Act'' and inserting ``Carl D. 
        Perkins Vocational and Technical Education Act of 1998'';
            (2) in section 9115(b)(5) (20 U.S.C. 7815(b)(5)), by 
        striking ``Carl D. Perkins Vocational and Technical Education 
        Act'' and inserting ``Carl D. Perkins Vocational and Technical 
        Education Act of 1998'';
            (3) in section 14302(a)(2) (20 U.S.C. 8852(a)(2))--
                    (A) by striking subparagraph (C); and
                    (B) by redesignating subparagraphs (D), (E), and (F) 
                as subparagraphs (C), (D), and (E), respectively; and

[[Page 112 STAT. 3126]]

            (4) in the matter preceding subparagraph (A) of section 
        14307(a)(1) (20 U.S.C. 8857(a)(1)), by striking ``Carl D. 
        Perkins Vocational and Applied Technology Technical Education 
        Act'' and inserting ``Carl D. Perkins Vocational and Technical 
        Education Act of 1998''.

    (d) Equity in Educational Land-Grant Status Act of 1994.--Section 
533(c)(4)(A) of the Equity in Educational Land-Grant Status Act of 1994 
(7 U.S.C. 301 note) is amended by striking ``(20 U.S.C. 2397h(3)'' and 
inserting ``, as such section was in effect on the day preceding the 
date of enactment of the Carl D. Perkins Vocational and Applied 
Technology Education Amendments of 1998''.
    (e) Improving America's Schools Act of 1994.--Section 563 of the 
Improving America's Schools Act of 1994 (20 U.S.C. 6301 note) is amended 
by striking ``the date of enactment of an Act reauthorizing the Carl D. 
Perkins Vocational and Technical Education Act (20 U.S.C. 2301 et 
seq.)'' and inserting ``July 1, 1999''.
    (f ) Workforce Investment Act of 1998.--Section 101(3) of the 
Workforce Investment Act of 1998 (29 U.S.C. 2801(3)) is amended by 
striking ``section 521 of the Carl D. Perkins Vocational and Applied 
Technology Education Act (20 U.S.C. 2471)'' and inserting ``section 3 of 
the Carl D. Perkins Vocational and Technical Education Act of 1998''.
    (g) Appalachian Regional Development Act of 1965.--Section 214(c) of 
the Appalachian Regional Development Act of 1965 (40 U.S.C. App. 214(c)) 
is amended by striking ``Carl D. Perkins Vocational Education Act'' and 
inserting ``Carl D. Perkins Vocational and Technical Education Act of 
1998''.
    (h) Vocational <<NOTE: 20 USC 11 note.>> Education Amendments of 
1968.--Section 104 of the Vocational Education Amendments of 1968 (82 
Stat. 1091) is amended by striking ``section 3 of the Carl D. Perkins 
Vocational Education Act'' and inserting ``the Carl D. Perkins 
Vocational and Technical Education Act of 1998''.

    (i) Older Americans Act of 1965.--The Older Americans Act of 1965 
(42 U.S.C. 3001 et seq.) is amended--
            (1) in section 502(b)(1)(N)(i) (42 U.S.C. 3056(b)(1)(N)(i)), 
        by striking ``or the Carl D. Perkins Vocational and Applied 
        Technology Education Act (20 U.S.C. 2301 et seq.)''; and
            (2) in section 505(d)(2) (42 U.S.C. 3056c(d)(2))--
                    (A) by striking ``employment and training programs'' 
                and inserting ``workforce investment activities''; and
                    (B) by striking ``the Carl D. Perkins Vocational and 
                Applied Technology Education Act (20 U.S.C. 2301 et 
                seq.)'' and inserting ``the Carl D. Perkins Vocational 
                and Technical Education Act of 1998''.

SEC. 4. ADULT EDUCATION AND FAMILY LITERACY.

    The Adult Education and Family Literacy Act (20 U.S.C. 9201 et seq.) 
is amended--
            (1) in section 224, <<NOTE: 20 USC 9224.>> by adding at the 
        end the following:

    ``(g) Transition.--The provisions of this section shall be subject 
to section 506(b).''; and
            (2) by amending paragraph (2) <<NOTE: 20 USC 9276.>> of 
        section 506(b) to read as follows:
            ``(2) Limitation.--The authority to take actions under 
        paragraph (1) shall apply until July 1, 2000.''.

[[Page 112 STAT. 3127]]

SEC. 5. TECHNICAL AND CONFORMING AMENDMENTS.

    (a) Workforce Investment Act of 1998.--Section 121 of the Workforce 
Investment Act of 1998 (29 U.S.C. 2841) is amended--
            (1) in subsection (b)(1)(B)(iv), by inserting before the 
        semicolon the following: ``(other than part C of title I of such 
        Act and subject to subsection (f ))''; and
            (2) by adding at the end the following:

    ``(f ) Application to Certain Vocational Rehabilitation 
Programs.--
            ``(1) Limitation.--Nothing in this section shall be 
        construed to apply to part C of title I of the Rehabilitation 
        Act of 1973 (29 U.S.C. 741).
            ``(2) Client assistance.--Nothing in this Act shall be 
        construed to require that any entity carrying out a client 
        assistance program authorized under section 112 of the 
        Rehabilitation Act of 1973 (29 U.S.C. 732)--
                    ``(A) violate the requirement of section 
                112(c)(1)(A) of that Act that the entity be independent 
                of any agency which provides treatment, services, or 
                rehabilitation to individuals under that Act; or
                    ``(B) carry out any activity not authorized under 
                section 112 of that Act (including appropriate Federal 
                regulations).''.

    (b) Wagner-Peyser Act.--
            (1) In general.--Section 15 of the Wagner-Peyser Act (as 
        added by section <<NOTE: Ante, p. 1082.>> 309 of the Workforce 
        Investment Act of 1998) is amended--
                    (A) in subsection (a)(2)(A)(i), by striking 
                ``under'' and all that follows through ``for which'' and 
                inserting ``under the provisions of this section for any 
                purpose other than the statistical purposes for which''; 
                and
                    (B) in subsection (e)(2)(G), by striking 
                ``complementary'' and inserting ``complementarity''.
            (2) Effective <<NOTE: 29 USC 49l-2 note.>> date.--The 
        amendments made by paragraph (1) take effect July 2, 1999.

    (c) Rehabilitation Act of 1973.--Section 725(c)(7) of the 
Rehabilitation Act of 1973 (as amended by section 410 of the Workforce 
Investment Act of 1998) <<NOTE: Ante, p. 1217.>> is amended by striking 
``management,'' and all that follows and inserting ``management;''.

SEC. 6. REPEALS AND EXTENSIONS OF PREVIOUS HIGHER EDUCATION AMENDMENTS 
            PROVISIONS.

    (a) Higher Education Amendments of 1986.--Title XIII of the Higher 
Education Amendments of 1986 ( <<NOTE: 20 USC 1101 note, 1029 note, 
1070a note, 1071 note, 1091 notes, 1121 note, 1221-1 notes, 9003 
note.>> Public Law 99-498) is repealed.

  

[[Page 112 STAT. 3128]]

    (b) Higher Education Amendments of 1992.--The following provisions 
of the Higher Education Amendments of 1992 (Public Law 102-325) are 
repealed:
            (1) <<NOTE: 25 USC 3331 et seq.>> Parts E, F, and G of title 
        XIII.
            (2) <<NOTE: 20 USC 1070 note, 1070a-21 note. 1071 note, 1080 
        note, 1101 note, 1132a note, 1134 note, 1221-1 notes, 1221e 
        note, 9003 note.>> Title XIV.
            (3) <<NOTE: 20 USC 1101 note, 1145h, 1452 note; 29 USC 2401 
        et seq.>> Parts A, B, C, and D of title XV.

  

    Approved October 31, 1998.

LEGISLATIVE HISTORY--H.R. 1853:
---------------------------------------------------------------------------

HOUSE REPORTS: Nos. 105-177 (Comm. on Education and the Workforce) and 
105-800 (Comm. of Conference).
CONGRESSIONAL RECORD:
                                                        Vol. 143 (1997):
                                    July 17, 22, considered and passed 
                                        House.
                                                        Vol. 144 (1998):
                                    June 12, considered and passed 
                                        Senate, amended.
                                    Oct. 8, House and Senate agreed to 
                                        conference report.

                                  <all>