[Congressional Bills 105th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1853 Engrossed in House (EH)]


  1st Session

                               H. R. 1853

_______________________________________________________________________

                                 AN ACT

    To amend the Carl D. Perkins Vocational and Applied Technology 
                             Education Act.
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
105th CONGRESS
  1st Session
                                H. R. 1853

_______________________________________________________________________

                                 AN ACT


 
    To amend the Carl D. Perkins Vocational and Applied Technology 
                             Education Act.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Carl D. Perkins Vocational-Technical 
Education Act Amendments of 1997''.

 SEC. 2. REFERENCES TO ACT.

    (a) Short Title of Act.--Section 1(a) of the Act is amended by 
striking ``(a) Short Title.--'' and further by striking ``Vocational 
and Applied Technology'' and inserting ``Vocational-Technical''.
    (b) References to Act.--Except as otherwise expressly provided, 
whenever in this Act an amendment or repeal is expressed in terms of an 
amendment to, or repeal of, a title, chapter, part, subpart, section, 
subsection, or other provision, the reference shall be considered to be 
made to a title, chapter, part, subpart, section, subsection, or other 
provision of the Carl D. Perkins Vocational-Technology Education Act as 
amended in subsection (a).

SEC. 3. TABLE OF CONTENTS.

    Section 1(b) is repealed.

SEC. 4. PURPOSE.

    Section 2 of the Act is amended to read as follows:

``SEC. 2. PURPOSE.

    ``It is the purpose of this Act to develop more fully the academic, 
occupational, and technical skills of individuals participating in 
vocational-technical education programs. This purpose will be achieved 
through concentrating resources on improving vocational-technical 
education programs leading to academic and technical skill competencies 
needed to work in a technologically advanced society.''.

SEC. 5. AUTHORIZATION OF APPROPRIATIONS.

    Section 3 of the Act is amended--
            (1) in subsection (a) by striking ``$1,600,000,000'' and 
        all that follows and inserting ``$1,300,000,000, for fiscal 
        year 1998 and such sums as may be necessary for each of the 4 
        succeeding fiscal years to carry out the provisions of titles I 
        and II.'';
            (2) by amending subsection (b) to read as follows:
    ``(b) Title I.--Of the amounts made available under subsection 
(a)--
            ``(1) 1.5 percent shall be reserved to carry out section 
        103, relating to Indian and Native Hawaiians programs; and
            ``(2) 0.2 percent shall be reserved to carry out section 
        101A, relating to the territories.''; and
            (3) by amending subsection (c) to read as follows:
    ``(c) National Programs.--None of the funds made available under 
this section for programs authorized under titles I, II, and part C of 
title III, shall be used for any program authorized under part A of 
title III.
            (4) by striking subsections (d) through (f).

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

SEC. 101. ALLOTMENT.

    (a) In General.--Title I is amended by striking the matter 
preceding the text of section 101 and inserting the following:

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

                   ``PART A--ALLOTMENT AND ALLOCATION

``SEC. 101. ALLOTMENT.''.

    (b) Allotment.--
            (1) Paragraphs (1) and (2) of section 101(a) are amended to 
        read as follows:
    ``(a) Specific Populations.--
            ``(1) In general.--In each fiscal year, from amounts made 
        available under section 3(a), the Secretary shall reserve--
                    ``(A) 1.5 percent to carry out section 103, of 
                which--
                            ``(i) 1.25 percent shall be available to 
                        carry out section 103(c); and
                            ``(ii) 0.25 percent shall be available to 
                        carry out section 103(i); and
                    ``(B) 0.2 percent for the purpose of carrying out 
                section 101A.
            ``(2) Remainder of funds.--From the remainder of the sums 
        appropriated pursuant to section 3, the Secretary shall allot 
        to each State for each fiscal year--
                    ``(A) an amount which 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; and
                    ``(B) an amount which bears the same ratio to 50 
                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.''.
            (2) Paragraph (3) of section 101(a) is amended--
                    (A) by striking subparagraphs (A) and (C);
                    (B) by redesignating subparagraphs (B) and (D) as 
                (A) and (B), respectively;
                    (C) in subparagraph (A), as redesignated, by 
                striking clause (i), and inserting the following:
                            ``(i) Notwithstanding any other provision 
                        of law and subject to subparagraph (B) and 
                        clause (ii), no State shall receive less than 
                        \1/2\ of 1 percent of the amount available for 
                        each such program for each fiscal year under 
                        this subsection.''; and
                    (D) in subparagraph (A)(ii), as redesignated, by 
                striking ``or part A, B, C, D, or E of title III''.
            (3) By amending subsection (c) to read as follows:
    ``(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 Puerto Rico and the 
                Virgin Islands), except that--
                            ``(i) the allotment ratio in no case shall 
                        be more than 0.55 or less than 0.40; and
                            ``(ii) the allotment ratio for Puerto Rico 
                        and the Virgin Islands shall be 0.55.
            ``(2) Allotment ratios.--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.--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.''.

SEC. 101A. THE TERRITORIES.

    Section 101A of the Act is amended by inserting after subsection 
(c) the following new subsection:
    ``(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 part 
for any fiscal year that begins after September 30, 2001.''.

SEC. 102. WITHIN STATE ALLOTMENTS.

    Section 102 is amended--
            (1) in subsection (a)--
                    (A) in paragraph (1) by striking ``at least'' and 
                all that follows through the semicolon and inserting 
                ``an amount equal to not less than 90 percent of the 
                allotment shall be available for basic programs under 
                part B of title II;'';
                    (B) by striking paragraph (2);
                    (C) by redesignating paragraphs (3) and (4) as 
                paragraphs (2) and (3), respectively;
                    (D) in paragraph (2), as redesignated, by striking 
                ``8.5'' and inserting ``8'' and further by adding after 
                the semicolon ``and'';
                    (E) in paragraph (3), as redesignated--
                            (i) by striking ``5'' and inserting ``2'';
                            (ii) by striking ``of which--'' and all 
                        that follows through ``and'' at the end and 
                        inserting the following:
        ``which may be used for the costs of--
                    ``(A) developing the State application;
                    ``(B) reviewing local applications;
                    ``(C) monitoring and evaluating program 
                effectiveness; and
                    ``(D) assuring compliance with all applicable 
                Federal laws.''; and
                    (F) by striking paragraph (5);
            (2) in subsection (b) by striking ``(a)(4)'' and inserting 
        ``(a)(3)''; and
            (3) by striking subsection (c) and inserting the following:
    ``(c) Rural and Urban Reserve.--A State may reserve not more than 5 
percent of the allotment made under section 102(a)(1) to use for grants 
to rural areas and not more than 5 percent of such allotment to use for 
grants to urban areas.
    ``(d) Definitions.--For purposes of this section--
            ``(1) the term `rural area' means an area that is not in a 
        metropolitan statistical area;
            ``(2) the term `urban area' means an area that serves a 
        central city in a metropolitan statistical area; and
            ``(3) the terms `central city' and `metropolitan 
        statistical area' have the same meanings given such terms in 
        section 10952 of the Elementary and Secondary Education Act of 
        1965.''.

SEC. 103. INDIAN AND NATIVE HAWAIIAN PROGRAMS.

    Section 103 of the Act is amended to read as follows:

``SEC. 103. NATIVE AMERICAN PROGRAM.

    ``(a) Indian Policy.--All programs assisted under this section 
shall be administered in a manner consistent with the principles of the 
Indian Self-Determination and Education Assistance Act (25 U.S.C. 450 
et seq.) and the government-to-government relationship between the 
Federal Government and Indian tribal governments.
    ``(b) Definitions.--As used in this section:
            ``(1) Alaska native.--The term `Alaska Native' means a 
        Native as such term is defined in section 3(b) of the Alaska 
        Native Claims Settlement Act (43 U.S.C. 1602(b)).
            ``(2) Bureau funded.--The term `Bureau funded school' 
        means--
                    ``(A) a Bureau school;
                    ``(B) a contract school; or
                    ``(C) a school for which assistance is provided 
                under the Tribally Controlled Schools Act of 1988.
            ``(3) Indian, indian tribe, and tribal organization.--The 
        terms `Indian', `Indian tribe', and `tribal organization' have 
        the meanings given such terms in subsections (d), (e), and (l), 
        respectively, of section 4 of the Indian Self-Determination and 
        Education Assistance Act (25 U.S.C. 450b).
            ``(4) Institution of higher education.--The term 
        `institution of higher education' has the meaning given such 
        term in section 1201(a) of the Higher Education Act of 1965 (20 
        U.S.C. 1141(a)).
            ``(5) Native hawaiian and native hawaiian organization.--
        The terms `Native Hawaiian' and `Native Hawaiian organization' 
        have the meanings given such terms in paragraphs (1) and (3), 
        respectively, of section 9212 of the Native Hawaiian Education 
        Act (20 U.S.C. 7912).
            ``(6) Tribally controlled community college.--The term 
        `tribally controlled community college' has the meaning given 
        such term in section 2(a)(4) of the Tribally Controlled 
        Community College Assistance Act of 1978 (25 U.S.C. 
        1801(a)(4)).
            ``(7) Tribally controlled postsecondary vocational 
        institution.--The term `tribally controlled postsecondary 
        vocational institution' means an institution of higher 
        education 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;
                    ``(F) holds accreditation with or is a candidate 
                for accreditation by a nationally recognized 
                accrediting authority for postsecondary vocational-
                technical education; and
                    ``(G) enrolls the full-time equivalent of not less 
                than 100 students, of whom a majority are Indians.
    ``(c) Program Authorized.--
            ``(1) In general.--From amounts reserved under section 
        101(a)(1)(A)(i), the Secretary shall make grants to Indian 
        tribes, tribal organizations and Alaska Native entities to 
        carry out the authorized programs described in subsection (d), 
        except that such terms shall not include secondary school 
        programs in Bureau funded schools.
            ``(2) 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-technical education programs.
    ``(d) Authorized Programs.--Funds made available under this section 
shall be used to carry out vocational-technical education programs 
consistent with the purposes of this Act.
    ``(e) Grant Application.--In order to receive a grant under this 
section an entity described in subsection (c) shall submit an 
application to the Secretary and shall include an assurance that such 
entity shall comply with the requirements of this Act.
    ``(f) Special Consideration.--The Secretary, in making grants under 
subsection (c), shall give special consideration to--
            ``(1) grants which involve, coordinate with, or encourage 
        tribal economic development plans; and
            ``(2) applications from tribally controlled community 
        colleges which--
                    ``(A) are accredited or are candidates for 
                accreditation by a nationally recognized accreditation 
                organization as an institution of postsecondary 
                vocational-technical education; or
                    ``(B) operate vocational-technical education 
                programs that are accredited or are candidates for 
                accreditation by a nationally recognized accreditation 
                organization and issue certificates for completion of 
                vocational-technical education programs.
    ``(g) Consolidation of Funds.--Each 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 Related Services Demonstration Act of 
1992 (25 U.S.C 3401 et seq.).
    ``(h) Nonduplicative and Nonexclusive Services.--Nothing in this 
section shall be construed--
            ``(1) to limit the eligibility of any entity described in 
        subsection (c) to participate in any activity offered by a 
        State or local entity under this title; or
            ``(2) to preclude or discourage any agreement, between any 
        entity described in subsection (c) and any State or local 
        entity, to facilitate the provision of services by such entity 
        or to the population served by such entity.
    ``(i) Native Hawaiian Programs.--From the funds reserved pursuant 
to section 101(a)(1)(A)(ii), the Secretary is directed to enter into 
contracts with organizations primarily serving and representing Native 
Hawaiian Programs 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 Hawaiian Programs.''.

SEC. 104. TRIBALLY CONTROLLED POSTSECONDARY VOCATIONAL INSTITUTIONS.

    Part A of title I of the Act is amended by adding at the end the 
following:

``SEC. 104. TRIBALLY CONTROLLED POSTSECONDARY VOCATIONAL-TECHNICAL 
              EDUCATION PROGRAMS.

    ``(a) Grants Authorized.--The Secretary shall, subject to the 
availability of appropriations, make grants pursuant to this section to 
tribally controlled postsecondary vocational-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-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 which 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-technical 
        institutions under this part 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.
    ``(d) Eligible Grant Recipients.--To be eligible for assistance 
under this section a tribally controlled postsecondary vocational-
technical institution shall--
            ``(1) be governed by a board of directors or trustees, a 
        majority of whom are Indians;
            ``(2) have been in operation for at least 3 years;
            ``(3) hold accreditation with or be a candidate for 
        accreditation by a nationally recognized accrediting authority 
        for postsecondary vocational-technical education; and
            ``(4) enroll the full-time equivalent of not less than 100 
        students, of whom a majority are Indians.
    ``(e) Applications.--Any tribally controlled postsecondary 
vocational-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.
    ``(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-
        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-
        technical education.
            ``(2) Prohibition on allocation of grant amount.--The 
        amount of any grant for which tribally controlled postsecondary 
        vocational-technical institutions are eligible under this 
        subpart shall not be altered because of funds allocated to any 
        such institution from funds appropriated under the Act of 
        November 2, 1921.
            ``(3) Prohibition on contract denial.--No tribally 
        controlled postsecondary vocational-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) Definitions.--For the purposes of this section:
            ``(1) Indian.--The terms `Indian' and `Indian tribe' have 
        the meanings given such terms in section 2 of the Tribally 
        Controlled Community College Assistance Act of 1978.
            ``(2) Tribally controlled postsecondary vocational-
        technical institution.--The term `tribally controlled 
        postsecondary vocational-technical institution' means an 
        institution of higher education which is formally controlled, 
        or has been formally sanctioned or chartered by the governing 
        body of an Indian tribe or tribes which offers technical 
        degrees or certificate granting programs.
            ``(3) Indian student count.--The term `Indian student 
        count' means a number equal to the total number of Indian 
        students enrolled in each tribally controlled vocational-
        technical institution, determined as follows:
                    ``(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 high school degree or its 
                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 vocational-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.
    ``(h) Authorization of Appropriations.--There is authorized to be 
appropriated not more than $4,000,000 for fiscal year 1998 and such 
sums as may be necessary for each of the 4 succeeding fiscal years to 
carry out the provisions of this section.''.

       PART B--STATE ORGANIZATIONAL AND PLANNING RESPONSIBILITIES

SEC. 111. STATE ADMINISTRATION.

    Section 111 of this Act is amended--
            (1) in subsection (a)(1)(A), by striking ``pursuant to 
        section 113(b)(8), section 116, and section 117'';
            (2) by striking subsection (a)(1)(B);
            (3) in subsection (a)(1)(C), by striking ``consultation 
        with'' and all that follows through the semicolon at the end of 
        subsection (a)(1)(C) and inserting ``consultation with the 
        Governor and appropriate agencies, groups, and individuals, 
        including business, industry and representatives of employees 
        involved in the planning, administration, evaluation, and 
        coordination of programs funded under this Act;''; and
            (4) by striking subsections (b) through (g) and inserting 
        the following:
    ``(b) List of Programs Assisted.--The State board shall make 
available to each Private Industry Council established under section 
102 of the Job Training Partnership Act within the State a listing of 
all programs assisted under this Act.''.

SEC. 112. STATE COUNCIL ON VOCATIONAL EDUCATION.

    Section 112 of the Act is repealed.

SEC. 113. STATE APPLICATION.

    Section 113 of the Act is amended--
            (1) by redesignating such section as section 112;
            (2) by striking ``plan'' in the section heading and 
        inserting ``application'';
            (3) in subsection (a)--
                    (A) in paragraph (1), by striking ``(A)'' and 
                further by striking all that follows after 
                ``Secretary'' and inserting ``an application in such 
                manner and accompanied by such information as the 
                Secretary may require but which, at a minimum, shall be 
                for a 5-year period.'';
                    (B) in paragraph (1), by striking subparagraph (B);
                    (C) by amending paragraph (2) to read as follows:
    ``(2) The State board shall conduct public hearings in the State, 
after appropriate and sufficient notice, for the purpose of affording 
all segments of the public and interested organizations and groups an 
opportunity to present their views and make recommendations regarding 
the State application. A summary of such recommendations and the State 
board's response shall be included with the State application.''; and
                    (D) by amending paragraph (3) to read as follows:
    ``(3) The State board shall, for secondary vocational-technical 
education programs, establish effective activities and procedures, by 
which parents, students, teachers, and area residents concerned will be 
able to participate in State and local decisions that influence 
programs under this Act, and ensure that such individuals are given 
access to the information needed to use such procedures.''.
            (4) by striking subsections (b) and (c) and inserting the 
        following:
    ``(b) Contents.--Each State application shall--
            ``(1) describe the vocational-technical education programs 
        that will be carried out with funds received by the State under 
        this Act, including a description of--
                    ``(A) the secondary and postsecondary vocational-
                technical education programs to be carried out at the 
                State level pursuant to section 201, including programs 
                that will be carried out by the State to develop, 
                improve, and expand access to quality, state-of-the-art 
                technology in vocational-technical education programs;
                    ``(B) the criteria that will be used by the State 
                in approving applications of eligible recipients of 
                funds under this Act;
                    ``(C) how such programs will prepare vocational-
                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-technical education courses.
            ``(2) describe how the State will actively involve parents, 
        teachers, local businesses (including small- and medium-sized 
        businesses) and representatives of employees in the planning, 
        development, implementation, and evaluation of such vocational-
        technical education programs;
            ``(3) describe how funds received by the State through the 
        allotment made under section 102 will be allocated among 
        secondary school vocational-technical education, or 
        postsecondary and adult vocational-technical education, or 
        both, including the rationale for such allotment;
            ``(4) describe how the State will--
                    ``(A) improve the academic and technical skills of 
                students participating in vocational-technical 
                education programs which includes strengthening the 
                academic and vocational components of vocational-
                technical education programs through the integration of 
                academics with vocational-technical education to ensure 
                learning in the core academic and vocational subjects 
                and provide students with strong experience and 
                understanding of all aspects of the industry; and
                    ``(B) ensure that students who participate in such 
                vocational-technical education programs are taught to 
                the same challenging academic proficiencies as are 
                provided for all other students;
            ``(5) describe how the State will annually evaluate the 
        effectiveness of such vocational-technical education programs 
        and describe, to the extent practicable, how the State is 
        coordinating such programs to ensure nonduplication with other 
        existing Federal programs;
            ``(6) identify the benchmarks that the State will use to 
        measure the progress of the State, including a description of 
        how such benchmarks will ensure continuous improvement for 
        vocational-technical students in meeting such benchmarks;
            ``(7) describe how the State will--
                    ``(A) provide vocational-technical education 
                programs that lead to high skill, high wage careers for 
                members of special populations, displaced homemakers, 
                single parents, and single pregnant women; and
                    ``(B) ensure that members of special populations 
                meet State benchmarks established under section 114 and 
                are prepared for postsecondary education, further 
                learning, and high skill, high wage careers;
            ``(8) describe what steps the State shall take to involve 
        representatives of local school boards in the development of 
        the State's benchmarks;
            ``(9) provide a financial audit of funds received under 
        this Act which may be included as part of an audit of other 
        Federal or State programs; and
            ``(10) provide assurances that none of the funds expended 
        under this Act 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 or its 
        employees or any affiliate of such an organization.
    ``(c) Amendments.--The State board may submit amendments to the 
State application, as necessary, during the 5-year period. Such 
amendments shall be submitted in accordance with section 113(c).''.

SEC. 114. SUBMISSION OF STATE APPLICATION.

    Section 114 of the Act is amended--
            (1) by redesignating such section as section 113;
            (2) by striking ``state plan approval'' in the section 
        heading and inserting ``submission of state application'';
            (3) by striking subsections (a) and (b); and
            (4) by adding at the end the following:
    ``(a) Application.--Each State application shall be submitted to 
the Secretary by not later than May 1 preceding the beginning of the 
first fiscal year for which a State application is to be in effect.
    ``(b) Consultation.--The State board shall develop the portion of 
each State application relating to the amount and uses of any funds 
proposed to be reserved for adult vocational-technical education, 
postsecondary vocational-technical education, tech-prep education, and 
secondary vocational-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-technical 
education, and the State agency responsible for secondary education. If 
a State agency finds that a portion of the final State application is 
objectionable, such agency shall file such objections with the State 
board. The State board shall respond to any objections of such agency 
in submitting such application to the Secretary.
    ``(c) Application Submission.--A State application submitted to the 
Secretary under this section shall be approved by the Secretary unless 
the Secretary makes a written determination, within 90 days after 
receiving the application, that the application is in violation of the 
provisions of this Act.''.

SEC. 115. ACCOUNTABILITY.

    Part B of title I is amended by inserting after section 113, as 
redesignated, the following:

``SEC. 114. ACCOUNTABILITY.

    ``(a) Benchmarks.--
            ``(1) Eligibility.--To be eligible to receive an allotment 
        under section 102, a State shall develop and identify in the 
        State application submitted under section 113 proposed rigorous 
        and quantifiable benchmarks to measure the statewide progress 
        of the State, which shall include, at a minimum, measures, of--
                    ``(A) attainment of challenging State academic and 
                vocational proficiencies;
                    ``(B) attainment of secondary school diplomas or 
                general equivalency diplomas; and
                    ``(C) placement in, retention in, and completion 
                of, postsecondary education or advanced training, or 
                placement and retention in military service, or 
                employment.
            ``(2) Existing benchmarks.--If a State has developed State 
        performance indicators or benchmarks for skills according to 
        challenging academic or vocational proficiencies consistent 
        with this Act, the State may use such performance indicators or 
        benchmarks in measuring the progress of vocational-technical 
        education students.
    ``(b) Program Improvement and Sanctions.--
            ``(1) State program improvement plan.--If a State fails to 
        meet its State benchmarks as described in the report submitted 
        under subsection (c), the State 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 State failed to 
        meet its benchmarks in order to avoid a sanction as provided 
        under paragraph (3).
            ``(2) Local improvement plan.--If an eligible recipient 
        fails to meet its State benchmarks, the eligible recipient 
        shall develop a program improvement plan with appropriate 
        agencies, individuals, and organizations for the succeeding 
        program year.
            ``(3) Sanctions.--
                    ``(A) In general.--If a State fails to meet the 
                State benchmarks required under subsection (a), and has 
                not implemented an improvement plan as described in 
                paragraph (1), has not demonstrated improvement in 
                meeting its benchmarks, or has failed to meet its 
                benchmarks for 2 or more consecutive years, the 
                Secretary may, after notice and opportunity for a 
                hearing, or withhold from the State all, or a portion 
                of, the State's allotment under this Act. The Secretary 
                may waive the sanction due to exceptional or 
                uncontrollable circumstances such as a natural disaster 
                or a precipitous and unforeseen decline in the 
                financial resources of the State.
                    ``(B) Funds resulting from reduced allotments.--The 
                amount of funds retained by the Secretary as a result 
                of a reduction in an allotment made under subparagraph 
                (A) shall be redistributed to other States in 
                accordance with section 101.
    ``(c) Report.--
            ``(1) In general.--
                    ``(A) Information.--Each State that receives an 
                allotment under section 102 shall annually prepare and 
                submit to the Secretary a report on how the State is 
                performing on State benchmarks that relate to 
                vocational-technical education programs. In preparing 
                the report, the State may include information on such 
                additional vocational-technical education benchmarks as 
                the State may establish.
                    ``(B) Special populations.--The report submitted by 
                the State in accordance with subparagraph (A) shall 
                include a description of how special populations, 
                displaced homemakers, single parents, and single 
                pregnant women participating in vocational-technical 
                education programs have performed in meeting the 
                vocational-technical education benchmarks established 
                by the State.
            ``(2) Information dissemination.--
                    ``(A) State requirements.--Each State shall make 
                the information contained in reports described under 
                paragraph (1) available to the general public through 
                publication and other appropriate methods which may 
                include electronic communication.
                    ``(B) Secretary requirements.--The Secretary shall 
                make the information contained in such reports 
                available to the general public through publication and 
                other appropriate methods which may include electronic 
                communication.
            ``(3) Benchmark performance.--Each local recipient shall 
        make available to the general public information regarding how 
        the local recipient is performing in regard to the State 
        benchmarks.''.

SEC. 116. PROGRAM EVALUATION.

    Sections 115, 116, 117, and 118 of the Act are repealed.

    TITLE II--BASIC STATE GRANTS FOR VOCATIONAL-TECHNICAL EDUCATION

SEC. 201. STATE PROGRAMS.

    (a) Heading.--The heading for title II is amended to read as 
follows:

  ``TITLE II--BASIC STATE GRANTS FOR VOCATIONAL-TECHNICAL EDUCATION''.

    (b) Programs.--Section 201 of the Act is amended--
            (1) in subsection (a), by striking ``102(a)(3)'' and 
        inserting ``102(a)(2)'';
            (2) by amending subsection (b) to read as follows:
    ``(b) Required Uses of Funds.--The programs described in subsection 
(a) shall include--
            ``(1) an assessment of the vocational-technical education 
        programs carried out with funds under this Act that includes an 
        assessment of how the needs of special populations are being 
        met and how such programs will ensure that the benchmarks 
        established under section 114 are being met;
            ``(2) developing, improving, or expanding the use of 
        technology in vocational-technical education which may 
        include--
                    ``(A) training of vocational-technical education 
                personnel to use state-of-the art technology, which may 
                include distance learning;
                    ``(B) providing vocational-technical education 
                students with the academic and technical skills that 
                lead to entry into the high technology and 
                telecommunications field; or
                    ``(C) encouraging schools to work with high tech 
                industries to offer voluntary internships and mentoring 
                programs;
            ``(3) professional development programs, including--
                    ``(A) inservice and preservice training in state-
                of-the-art vocational-technical education programs and 
                techniques, effective teaching skills based on 
                research, and effective practices to improve parental 
                and community involvement; and
                    ``(B) support of education programs for teachers of 
                vocational-technical education in public schools and 
                other public school personnel who are involved in the 
                direct delivery of educational services to vocational 
                education students to ensure that such teachers stay 
                current with the needs, expectations, and methods of 
                industry; and
            ``(4) support for vocational-technical education programs 
        that improve the academic and technical skills of students 
        participating in vocational-technical education programs by 
        strengthening the academic and vocational component of such 
        vocational-technical education programs through the integration 
        of academics with vocational-technical education to ensure 
        learning in the core academic and vocational subjects.'';
            (3) by amending subsection (c) to read as follows:
    ``(c) Permissible Uses of Funds.--The programs under subsection (a) 
may include--
            ``(1) technical support for eligible recipients;
            ``(2) establishing agreements between secondary and 
        postsecondary vocational-technical education programs in order 
        to provide postsecondary education and training opportunities 
        for students participating in such vocational-technical 
        education programs, such as tech-prep programs;
            ``(3) support for programs for single parents, displaced 
        homemakers, single pregnant women, and individuals in 
        nontraditional occupations that lead to high skill, high wage 
        careers;
            ``(4) support for cooperative education;
            ``(5) support for vocational student organizations;
            ``(6) support for public charter schools operating 
        secondary vocational-technical education programs;
            ``(7) support for vocational-technical education programs 
        that offer experience in, and understanding of, all aspects of 
        the industry for which students are preparing to enter;
            ``(8) support for family and consumer sciences programs;
            ``(9) support for corrections vocational-technical 
        education;
            ``(10) support for education and business partnerships; and
            ``(11) support to improve or develop new vocational-
        technical education courses.''; and
            (4) by adding after subsection (c) the following new 
        subsection:
    ``(d) Restriction on Uses of Funds.--A State that receives funds 
under section 102(a)(2) may not use any of such funds to pay 
administrative costs.''.

SEC. 202. SECONDARY, POSTSECONDARY, AND ADULT VOCATIONAL-TECHNICAL 
              EDUCATION PROGRAMS.

    Part B of title II of the Act is amended to read as follows:

  ``PART B--SECONDARY, POSTSECONDARY, AND ADULT VOCATIONAL-TECHNICAL 
                           EDUCATION PROGRAMS

                  ``Subpart 1--Within-State Allocation

``SEC. 221. DISTRIBUTION OF FUNDS TO SECONDARY SCHOOL PROGRAMS.

    ``(a) General Rule.--Except as otherwise provided in this section 
and section 223, each State shall distribute the funds received under 
this Act and available in fiscal year 1998 for secondary school 
vocational-technical education to local educational agencies within the 
State as follows:
            ``(1) From 70 percent of such funds, 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 or such 
        section's predecessor authority of the Elementary and Secondary 
        Education Act of 1965 in the preceding fiscal year bears to the 
        total amount received under such section by local educational 
        agencies in the State in such year.
            ``(2) From 20 percent of such funds, 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 who are served by such local educational agency in the 
        preceding fiscal year bears to the total number of such 
        students served by local educational agencies in the State in 
        such year.
            ``(3) From 10 percent of such funds, 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 in 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 in 
        such year.
    ``(b) Special Distribution Rules for Subsequent Fiscal Years.--
            ``(1) Fiscal years 1999 and 2000.--In fiscal years 1999 and 
        2000, each State shall distribute the funds available under 
        this Act in such fiscal years for secondary school vocational-
        technical education programs to local educational agencies 
        within the State as follows:
                    ``(A) Lesser or equal amounts.--Each State shall 
                distribute all funds allocated by the State for each 
                such fiscal year for secondary school vocational-
                technical education programs in amounts less than or 
                equal to the total amount of funds distributed pursuant 
                to section 231(a) of this Act as such section was in 
                effect on the day before the date of the enactment of 
                the Carl D. Perkins Vocational-Technical Education Act 
                Amendments of 1997 for such programs in fiscal year 
                1997 as follows:
                            ``(i) 30 percent shall be allocated to such 
                        agencies in proportion to the number of 
                        individuals aged 15 to 19, inclusive, who 
                        reside in the school district served by such 
                        agency for the preceding fiscal year compared 
                        to the total number of such individuals who 
                        reside in the school districts served by all 
                        local educational agencies in the State for 
                        such preceding year.
                            ``(ii) 70 percent shall be allocated to 
                        such agencies in proportion to the number of 
                        individuals aged 15 through 19, inclusive, who 
                        reside in the school district served by such 
                        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 
                        in all the local educational agencies in the 
                        State.
                    ``(B) Greater amounts.--Each State shall distribute 
                all funds allocated by the State for each such fiscal 
                year for secondary school vocational-technical 
                education programs in amounts greater than the total 
                amount of funds distributed pursuant to section 231(a) 
                of this Act as such section was in effect on the day 
                before the date of the enactment of the Carl D. Perkins 
                Vocational-Technical Education Act Amendments of 1997 
                for such programs in fiscal year 1997 as follows:
                            ``(i) 40 percent shall be allocated to such 
                        agencies in proportion to the number of 
                        individuals aged 15 to 19, inclusive, who 
                        reside in the school district served by such 
                        agency for the preceding fiscal year compared 
                        to the total number of such individuals who 
                        reside in the school districts served by all 
                        local educational agencies in the State for 
                        such preceding year.
                            ``(ii) 60 percent shall be allocated to 
                        such agencies in proportion to the number of 
                        individuals aged 15 through 19, inclusive, who 
                        reside in the school district served by such 
                        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 
                        in all the local educational agencies in the 
                        State.
            ``(2) Fiscal year 2001.--Each State shall distribute funds 
        allocated under this Act in fiscal year 2001 for secondary 
        school vocational-technical education programs to local 
        educational agencies within the State as follows:
                    ``(A) 35 percent shall be allocated to such 
                agencies in proportion to the number of individuals 
                aged 15 to 19, inclusive, who reside in the school 
                district served by such agency for the preceding fiscal 
                year compared to the total number of such individuals 
                who reside in the school districts served by all local 
                educational agencies in the State for such preceding 
                year.
                    ``(B) 65 percent shall be allocated to such 
                agencies in proportion to the number of individuals 
                aged 15 through 19, inclusive, who reside in the school 
                district served by such 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 in all the 
                local educational agencies in the State.
            ``(3) Fiscal year 2002.--Each State shall distribute funds 
        allocated under this Act in fiscal year 2002 for secondary 
        school vocational-technical education programs to local 
        educational agencies within the State as follows:
                    ``(A) 40 percent shall be allocated to such 
                agencies in proportion to the number of individuals 
                aged 15 to 19, inclusive, who reside in the school 
                district served by such agency for the preceding fiscal 
                year compared to the total number of such individuals 
                who reside in the school districts served by all local 
                educational agencies in the State for such preceding 
                year.
                    ``(B) 60 percent shall be allocated to such 
                agencies in proportion to the number of individuals 
                aged 15 through 19, inclusive, who reside in the school 
                district served by such 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 in all the local educational 
                agencies in the State.
    ``(c) Waiver for More Equitable Distribution.--The Secretary may 
waive the application of subsection (b) in the case of any State 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 Grant Amount.--
            ``(1) In general.--Except as provided in paragraph (2), no 
        local educational agency shall be eligible for a grant under 
        this part unless the amount allocated to such agency under 
        subsections (a) and (b) is not less than $10,000. 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 State 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-technical education programs; and
                    ``(B) demonstrates that the agency is unable to 
                enter into a consortium for purposes of providing 
                services 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 
        subsections (a), (b), (c), and (d), no State receiving 
        assistance under this Act 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.
            ``(2) Secondary school jurisdiction.--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 were enrolled 
        in such secondary schools in the previous year from the 
        elementary schools involved.
    ``(f) Allocations to Area Vocational-Technical Education Schools 
and Educational Service Agencies.--
            ``(1) In general.--Each State shall distribute funds 
        available for secondary school vocational-technical education 
        programs to the appropriate area vocational-technical education 
        school or educational service agency in any case in which the 
        area vocational-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-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-technical education school, 
        the educational service agency, and the local educational 
        agency based on each school's or entity's relative share of 
        students who are attending vocational-technical education 
        programs (based, if practicable, on the average enrollment for 
        the prior 3 years).
            ``(3) Appeals procedure.--The State board shall establish 
        an appeals procedure for resolution of any dispute arising 
        between a local educational agency and an area vocational-
        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 225 is encouraged to--
                    ``(A) form a consortium or enter into a cooperative 
                agreement with an area vocational-technical education 
                school or educational service agency offering programs 
                that meet the requirements of section 225; and
                    ``(B) transfer such allocation to the area 
                vocational-technical education school or educational 
                service agency; and
                    ``(C) operate programs that are of sufficient size, 
                scope, and quality as 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 Act. Such funds may not be reallocated to 
        individual members of the consortium for purposes or programs 
        benefiting only one member of the consortium.
    ``(h) Data.--The Secretary shall collect information from States 
regarding the specific dollar allocations made available by the State 
for vocational-technical education programs under subsections (a), (b), 
(c), and (d) and how these allocations are distributed to local 
educational agencies, area vocational-technical education schools, 
educational services agencies, and eligible institutions within the 
State in accordance with this section.

``SEC. 222. DISTRIBUTION OF FUNDS FOR POSTSECONDARY AND ADULT 
              VOCATIONAL-TECHNICAL EDUCATION PROGRAMS.

    ``(a) Allocation.--
            ``(1) In general.--Except as provided in subsections (b) 
        and (c) and section 223, each State shall distribute funds 
        available in any fiscal year for postsecondary and adult 
        vocational-technical education programs to eligible 
        institutions or consortia of eligible institutions within the 
        State.
            ``(2) Formula.--Each eligible institution or consortium of 
        eligible institutions shall receive an amount that bears the 
        same relationship to the amount of funds available under such 
        section as the number of individuals who are Pell Grant 
        recipients or recipients of assistance from the Bureau of 
        Indian Affairs and are enrolled in programs meeting the 
        requirements of section 225 offered by such institution or 
        consortium in the preceding fiscal year bears to 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 as 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 can be used only for programs authorized 
                under this Act. Such funds may not be reallocated to 
                individual members of the consortium for purposes or 
                programs benefiting only one member of the consortium.
    ``(b) Waiver for More Equitable Distribution.--The Secretary may 
waive the application of subsection (a) in the case of any State that 
submits to the Secretary of Education an application for such a waiver 
that--
            ``(1) demonstrates that the formula described in subsection 
        (a) does not result in a distribution of funds to the 
        institutions or consortia within the State that have the 
        highest numbers of economically disadvantaged individuals and 
        that an alternative formula would result in such a 
        distribution; and
            ``(2) includes a proposal for such an alternative formula.
    ``(c) Minimum Grant Amount.--
            ``(1) In general.--No funds provided to any institution or 
        consortium under this section shall be for an amount that is 
        less than $35,000.
            ``(2) Redistribution.--Any amounts that are not distributed 
        by reason of paragraph (1) shall be redistributed to eligible 
        institutions or consortia of eligible institutions in 
        accordance with the provisions of this section.
    ``(d) Definitions.--For the purposes of this section--
            ``(1) the term `eligible institution' means an institution 
        of higher education as such term is defined in section 1201(a) 
        of the Higher Education Act of 1965, a local educational agency 
        serving adults, or an area vocational education school serving 
        adults that offers or will offer a program that meets the 
        requirements of section 225 and seeks to receive assistance 
        under this part; and
            ``(2) the term `Pell Grant' means a recipient of financial 
        aid under subpart 1 of part A of title IV of the Higher 
        Education Act of 1965.

``SEC. 223. SPECIAL RULES FOR VOCATIONAL-TECHNICAL EDUCATION.

    ``(a) Special Rule for Minimal Allocation.--
            ``(1) General authority.--Notwithstanding the provisions of 
        sections 221 and 222 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 a State for distribution 
        under section 221 or 222, 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 this part.
    ``(b) Redistribution.--
            ``(1) In general.--In any academic year that a local 
        educational agency or eligible institution does not expend all 
        of the amounts it is allocated for such year under section 221 
        or 222, such recipient shall return any unexpended amounts to 
        the State to be reallocated under section 221 or 222, as 
        appropriate.
            ``(2) Redistribution of amounts returned late in an 
        academic year.--In any academic year in which amounts are 
        returned to the State under section 221 or 222 and the State is 
        unable to reallocate such amounts according to such sections in 
        time for such amounts to be expended in such academic year, the 
        State shall retain such amounts for distribution in combination 
        with amounts provided under this title for the following 
        academic year.
    ``(c) Construction.--Nothing in section 221 or 222 shall be 
construed--
            ``(1) to prohibit a local educational agency (or a 
        consortium thereof) that receives assistance under section 221, 
        from working with an eligible recipient (or consortium thereof) 
        that receives assistance under section 222, to carry out 
        secondary school vocational-technical education programs in 
        accordance with this title;
            ``(2) to prohibit an eligible recipient (or consortium 
        thereof) that receives assistance under section 222, from 
        working with a local educational agency (or consortium thereof) 
        that receives assistance under section 221, to carry out 
        postsecondary and adult vocational-technical education programs 
        in accordance with this title; or
            ``(3) to require a charter school which provides 
        vocational-technical education programs and is a local 
        educational agency to jointly establish its eligibility 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 
State board shall provide funds to charter schools that offer 
vocational-technical education programs that are public schools of the 
local educational agency in the same manner as it provides those funds 
to other schools of the local educational agency. Such vocational-
technical education program within a charter school shall be of 
sufficient size, scope, and quality as to be effective.

``SEC. 224. LOCAL APPLICATION FOR VOCATIONAL-TECHNICAL EDUCATION 
              PROGRAMS.

    ``(a) Application Required.--Any eligible recipient desiring 
financial assistance under this part shall, in accordance with 
requirements established by the State board, submit an application to 
the State board. Such application shall cover the same period of time 
as the period of time applicable to the State application submitted 
under section 112.
    ``(b) Contents.--The State board shall determine requirements for 
local applications, except that each application shall--
            ``(1) describe how the vocational-technical education 
        programs required under section 225(b) will be carried out with 
        funds received under this part;
            ``(2) describe how students participating in vocational-
        technical education programs carried out with funds under this 
        Act will reach the State benchmarks as established under 
        section 114;
            ``(3) describe how the eligible recipient will--
                    ``(A) improve the academic and technical skills of 
                students participating in vocational-technical 
                education programs by strengthening the academic and 
                vocational components of such programs through the 
                integration of academics with vocational-technical 
                education programs through a coherent sequence of 
                courses to ensure learning in the core academic and 
                vocational subjects; and
                    ``(B) ensure that students who participate in such 
                vocational-technical education programs are taught to 
                the same challenging academic proficiencies as are 
                provided for all other students;
            ``(4) describe how parents, students, teachers, business 
        and representatives of employees are involved in the 
        development, implementation, and evaluation of vocational-
        technical education programs assisted under this Act, and how 
        these individuals are effectively informed about, and assisted 
        in understanding, the requirements of this Act; and
            ``(5) provide assurances that the eligible recipient will 
        provide a vocational-technical education program that is of 
        such size, scope, and quality as to bring about improvement in 
        the quality of vocational-technical education programs.

``SEC. 225. LOCAL USES OF FUNDS.

    ``(a) General Authority.--Each eligible recipient that receives a 
grant under this part shall use such funds to improve vocational-
technical education programs.
    ``(b) Requirements for Uses of Funds.--Funds made available under 
this part shall be used to support vocational-technical education 
programs that--
            ``(1) strengthen the academic and technical skills of 
        students participating in vocational-technical education 
        programs by strengthening the academic and vocational 
        components of such programs through the integration of 
        academics with vocational-technical education programs through 
        a coherent sequence of courses to ensure learning in the core 
        academic and vocational subjects;
            ``(2) develop, improve, or expand the use of technology in 
        vocational-technical education which may include--
                    ``(A) training of vocational-technical education 
                personnel to use State-of-the art technology, which may 
                include distance learning;
                    ``(B) providing vocational-technical education 
                students with the academic and technical skills that 
                lead to entry into the high technology and 
                telecommunications field; or
                    ``(C) encouraging schools to work with high tech 
                industries to offer voluntary internships and mentoring 
                programs;
            ``(3) provide professional development programs, 
        including--
                    ``(A) inservice training in state-of-the-art 
                vocational-technical education programs and techniques, 
                effective teaching skills based on research, and 
                effective practices to improve parental and community 
                involvement; and
                    ``(B) support of education programs for teachers of 
                vocational-technical education in public schools and 
                other public school personnel who are involved in the 
                direct delivery of educational services to vocational-
                technical education students, to ensure that such 
                teachers stay current with the needs, expectations, and 
                methods of industry;
            ``(4) support vocational-technical education programs that 
        improve the academic and technical skills of students 
        participating in vocational-technical education programs by 
        strengthening the academic component of such vocational-
        technical education programs through the integration of 
        academics with vocational-technical education to ensure 
        learning in the core academic subjects; and
            ``(5) provide an assessment of the vocational-technical 
        education programs carried out with funds under this Act, 
        including an assessment of how the needs of special populations 
        are being met, and how such programs will ensure that the 
        benchmarks established under section 114 are being met.
    ``(c) Permissible Activities.--Funds made available under this part 
may be used for--
            ``(1) establishing agreements between secondary and 
        postsecondary vocational-technical education programs in order 
        to provide postsecondary education and training opportunities 
        for students participating in such vocational-technical 
        programs, such as tech-prep programs;
            ``(2) involving parents, business, and representatives of 
        employees in the design, implementation, and evaluation of 
        vocational-technical education programs authorized under this 
        Act;
            ``(3) providing career guidance and academic counseling;
            ``(4) providing work related experience, such as 
        internships, cooperative education, school-based enterprises, 
        entrepreneurship, and job shadowing that are related to 
        vocational-technical education programs;
            ``(5) programs for single parents, displaced homemakers, 
        and single pregnant women;
            ``(6) local education and business partnerships;
            ``(7) vocational student organizations;
            ``(8) mentoring and support services;
            ``(9) leasing, purchasing, or upgrading of equipment;
            ``(10) establishing effective programs and procedures to 
        enable vocational-technical education program participants and 
        their parents to participate directly in decisions that 
        influence the programs, including providing information and 
        assistance for informed effective participation;
            ``(11) teacher preparation programs which assist 
        individuals who are interested in becoming vocational-technical 
        education instructors, including individuals with experience in 
        business and industry;
            ``(12) improving or developing new vocational-technical 
        education courses; and
            ``(13) support for family and consumer sciences programs.
    ``(d) Administrative Costs.--Each eligible recipient receiving 
funds under this part shall not use more than 2 percent of the funds 
for administrative costs associated with the administration of the 
grant.''.

SEC. 203. REPEAL OF PART C.

    Part C of title II is repealed.

                  TITLE III--RESEARCH AND DEVELOPMENT

SEC. 301. EVALUATION; RESEARCH, DEMONSTRATIONS AND DISSEMINATION.

    (a) Heading.--The heading for title III is amended to read as 
follows:

                ``TITLE III--RESEARCH AND DEVELOPMENT''.

    (b) Part A.--Part A of title III is amended to read as follows:

                   ``PART A--RESEARCH AND DEVELOPMENT

``SEC. 301. EVALUATION; RESEARCH; DEMONSTRATIONS; AND DISSEMINATION.

    ``(a) Single Plan.--
            ``(1) In general.--The Secretary shall develop a single 
        plan for evaluation and assessment, research, demonstrations, 
        and dissemination with regard to the vocational-technical 
        education programs assisted under this Act.
            ``(2) Plan.--Such plan shall--
                    ``(A) identify the vocational-technical education 
                programs the Secretary will carry out under this 
                section;
                    ``(B) describe how the Secretary will evaluate such 
                vocational-technical education programs in accordance 
                with subsection (b); and
                    ``(C) include such other information as the 
                Secretary determines to be appropriate.
    ``(b) Evaluation and Assessment.--
            ``(1) In general.--From amounts made available under 
        subsection (g), the Secretary shall provide for the conduct of 
        an independent evaluation and assessment of vocational-
        technical education programs under this Act through studies and 
        analyses conducted independently through grants and contracts 
        awarded on a competitive basis.
            ``(2) Contents.--Such evaluation and assessment of 
        vocational-technical education programs shall include 
        descriptions of--
                    ``(A) the extent to which State, local, and tribal 
                entities have developed, implemented, or improved State 
                and local vocational-technical education programs;
                    ``(B) the degree to which the expenditures of funds 
                provided under this Act at the Federal, State, local, 
                and tribal levels address improvement in vocational-
                technical education programs;
                    ``(C) the extent to which vocational-technical 
                education programs succeed in preparing individuals 
                participating in such programs for entry into 
                postsecondary education, further learning, or high 
                skill, high wage careers; and
                    ``(D) the effect of State benchmarks, performance 
                measures, and other measures of accountability on the 
                delivery of vocational-technical education programs.
    ``(c) Collection of Information and Report.--
            ``(1) In general.--The Secretary may collect and 
        disseminate information from States regarding State efforts to 
        meet State benchmarks described in section 114.
            ``(2) Report.--The Secretary shall gather any information 
        collected pursuant to paragraph (1) 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.
    ``(d) Research.--
            ``(1) In general.--The Secretary shall award grants, on a 
        competitive basis, to an institution of higher education, a 
        public or private organization or agency, or a consortium of 
        such institutions, organizations, or agencies to establish a 
        national research center or centers--
                    ``(A) 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-technical education 
                programs;
                    ``(B) to carry out research to increase the 
                effectiveness and improve the implementation of 
                vocational-technical education programs, including 
                conducting research and development and studies 
                providing longitudinal information or formative 
                evaluation with respect to vocational-technical 
                education programs;
                    ``(C) to carry out research that can be used to 
                improve teaching and learning in the vocational-
                technical education classroom; and
                    ``(D) to carry out such other research as the 
                Secretary determines to be appropriate to achieve the 
                purposes of this Act.
            ``(2) Summary.--The Secretary shall provide an annual 
        report summarizing the evaluations and assessments described in 
        subsection (b), and the research conducted pursuant to this 
        subsection, and the findings of such evaluations and 
        assessments, and research, to the Committee on Education and 
        the Workforce of the House of Representatives and the Committee 
        on Labor and Human Resources of the Senate.
    ``(e) Demonstrations and Dissemination.--
            ``(1) Demonstration program.--The Secretary is authorized 
        to carry out demonstration vocational-technical education 
        programs, to replicate model vocational-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-
        technical education programs assisted under this Act.
            ``(2) Demonstration partnership.--
                    ``(A) 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, retraining of military medical personnel, 
                retraining of individuals displaced by corporate or 
                military restructuring, migrant workers, and other 
                individuals who otherwise would not have access to such 
                services, through multi-site, multi-State distance 
                learning technologies.
                    ``(B) Program.--Such program may be carried out 
                directly or through grants, contracts, cooperative 
                agreements, or through the national center or centers.
    ``(f) Definition.--As used in this section, the term `institution 
of higher education' has the meaning given the term in section 1201(a) 
of the Higher Education Act of 1965 (20 U.S.C. 1141(a)).
    ``(g) Authorization of Appropriations.--There are authorized to be 
appropriated such sums as may be necessary for fiscal year 1998 and 
such sums as may be necessary for each of the 4 succeeding fiscal years 
to carry out this part.''.

SEC. 302. TECH-PREP EDUCATION.

    Part B of title III is amended to read as follows:

                     ``PART C--TECH-PREP EDUCATION

``SEC. 321. TECH-PREP EDUCATION.

    ``(a) Program Authorized.--The State board, in accordance with the 
provisions of this part, shall award grants to consortia on a 
competitive basis or on the basis of a formula determined by the State 
board, for tech-prep education programs.
    ``(b) General Authority.--Each grant recipient shall use amounts 
provided under the grant to develop and operate a 4- or 6-year tech-
prep education program.
    ``(c) Contents of Program.--Any such program shall--
            ``(1) be carried out under an articulation agreement 
        between the participants in the consortium;
            ``(2) consist of the 2 or 4 years of secondary school 
        preceding graduation and 2 years 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, communications, and technologies designed 
        to lead to an associate degree or postsecondary certificate in 
        a specific career field;
            ``(3) include the development of tech-prep education 
        program components appropriate to the needs of the consortium 
        participants;
            ``(4) include in-service training for teachers that--
                    ``(A) is designed to train vocational-technical 
                teachers to effectively implement tech-prep education 
                programs;
                    ``(B) provides for joint training for teachers in 
                the tech-prep consortium; and
                    ``(C) may provide such training in weekend, 
                evening, and summer sessions, institutes, or workshops;
            ``(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 such 
                programs; and
                    ``(C) provide information on related employment 
                opportunities;
            ``(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 education 
        program services appropriate to the needs of such individuals; 
        and
            ``(7) provide for preparatory services that assist 
        participants in such programs.
    ``(d) Additional Authorized Activities.--Each such program may--
            ``(1) provide for the acquisition of tech-prep education 
        program equipment; and
            ``(2) acquire technical assistance from State or local 
        entities that have successfully designed, established and 
        operated tech-prep programs.

``SEC. 322. APPLICATIONS.

    ``(a) In General.--Each consortium that desires to receive a grant 
under this part shall submit an application to the State board, as 
appropriate, at such time and in such manner as the State board shall 
prescribe.
    ``(b) Plan.--Each application submitted under this section shall 
contain a 5-year plan for the development and implementation of 
programs under this part.
    ``(c) Approval.--The State board shall approve applications based 
on their potential to create an effective tech-prep education program 
as provided for in this section.
    ``(d) Special Consideration.--The State board, as appropriate, 
shall give special consideration to applications which--
            ``(1) provide for effective employment placement activities 
        or transfer of students to 4-year baccalaureate degree 
        programs;
            ``(2) are developed in consultation with business, 
        industry, institutions of higher education, and representatives 
        of employees;
            ``(3) address effectively the issues of dropout prevention 
        and reentry and the needs of special populations.

``SEC. 323. REPORT.

    ``Each State that receives a grant under this part shall annually 
prepare and submit to the Secretary a report on the effectiveness of 
their Tech-Prep programs, including how competitive grants were awarded 
within the State.

``SEC. 324. ALLOTMENT.

    ``The Secretary shall allot funds under this part in each fiscal 
year in the same manner as funds are allotted under section 101(a)(2).

``SEC. 325. AUTHORIZATION.

    ``(a) In General.--From amounts made available under section 3(a), 
10 percent shall be used to carry out this part for fiscal year 1998 
and for each of the 4 succeeding fiscal years.
    ``(b) Minimum Amount.--No State shall receive a grant of less than 
$250,000 under this part in any fiscal year.''.

SEC. 303. VOCATIONAL-TECHNICAL EDUCATION AND OCCUPATIONAL INFORMATION 
              DATA SYSTEMS.

    Part C of title IV is amended--
            (1) by striking the part heading and inserting the 
        following:

        ``PART B--VOCATIONAL-TECHNICAL EDUCATION INFORMATION'';

            (2) by redesignating sections 421 through 424 as sections 
        311 through 314, respectively.
            (3) by amending subsection (e) of section 312, as 
        redesignated under paragraph (2), to read as follows:
    ``(e) There are authorized to be appropriated for each of fiscal 
years 1998 through 2002 such sums as may be necessary to carry out this 
part.'';
            (4) in section 313(a)(1), as redesignated in paragraph (2), 
        by striking ``421'' and inserting ``311''; and
            (5) by adding at the end of such part the following new 
        section:

``SEC. 315. AUTHORIZATION OF APPROPRIATIONS

    ``There are authorized to be appropriated for this part such sums 
as may be necessary for fiscal year 1998 and such sums as may be 
necessary for each of the 4 succeeding fiscal years.''.

SEC. 304. REPEALS.

    (a) Title III.--Parts C, D, E, F, G, and H of title III of the Act, 
as the Act was in effect on the day before the date of the enactment of 
this Act, are repealed.
    (b) Title IV.--The heading for title IV and parts A, B, E, and F of 
such title of the Act are repealed.

                      TITLE IV--GENERAL PROVISIONS

SEC. 401. GENERAL PROVISIONS.

    Title V of the Act is amended to read as follows:

                     ``TITLE IV--GENERAL PROVISIONS

              ``PART A--FEDERAL ADMINISTRATIVE PROVISIONS

``SEC. 401. PAYMENTS.

    ``The Secretary shall pay from its allotment under section 101 to 
each State for any fiscal year for which the State has a State 
application submitted in accordance with section 113 (including any 
amendment to such application) the Federal share of the costs of 
carrying out the State application.

``SEC. 402. FISCAL REQUIREMENTS.

    ``(a) Supplement Not Supplant.--Funds received under this Act shall 
be used to supplement, not supplant, the amount of funds that would, in 
the absence of such Federal funds, be made available from non-Federal 
sources for vocational-technical education programs.
    ``(b) Maintenance of Effort.--
            ``(1) Determination.--
                    ``(A) In general.--Except as provided in 
                subparagraphs (B) and (C), no payments shall be made 
                under this title for any fiscal year to a State for 
                vocational-technical education programs unless the 
                Secretary of Education determines that the fiscal 
                effort per student or the aggregate expenditures of 
                such State for vocational-technical programs for the 
                fiscal year preceding the fiscal year for which the 
                determination is made, equaled or exceeded such effort 
                or expenditures for vocational-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 of Education 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-technical education 
                programs under this Act for a fiscal year is less than 
                the amount made available for vocational-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 
        paragraph (1) (with respect to not more than 5 percent of 
        expenditures required for the preceding fiscal year by any 
        State) for 1 program year only, after making a determination 
        that such waiver would be equitable due to exceptional or 
        uncontrollable circumstances affecting the ability of the State 
        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 paragraph 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. 403. 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 appropriation Acts.

``SEC. 404. NATIONAL AND STATE FUNDING.

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

``SEC. 405. FREEDOM TO CHOOSE.

    ``None of the funds made available under this Act shall be used 
to--
            ``(1) require any individual to choose or pursue a specific 
        career path or major or to participate in any vocational-
        technical education program;
            ``(2) compel any individual to enter into a specific course 
        of study which requires as a condition of completion, 
        attainment of federally-funded or endorsed industry recognized 
        skills or standards;
            ``(3) require any individuals to meet or obtain federally-
        funded or federally endorsed industry recognized skills, 
        certificates, or standards, unless the participant has selected 
        and is participating in a program or course of study that 
        requires, as a condition of completion, attainment of an 
        industry-recognized skill or standard; or
            ``(4) to require any individual to obtain a federally-
        funded or endorsed certificate of mastery.

``SEC. 406. LIMITATION FOR CERTAIN STUDENTS.

    ``None of the funds received under this Act may be used to provide 
vocational-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. 407. FEDERAL LAWS GUARANTEEING CIVIL RIGHTS.

    ``Nothing in this Act shall be construed to be inconsistent with 
applicable Federal laws guaranteeing civil rights.

``SEC. 408. AUTHORIZATION OF SECRETARY.

    ``For the purposes of increasing and expanding the use of 
technology in vocational-technical education instruction, including the 
training of vocational-technical education personnel as provided in 
title II, the Secretary is authorized to receive 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. 409. PARTICIPATION OF PRIVATE SCHOOL PERSONNEL.

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

               ``PART B--STATE ADMINISTRATIVE PROVISIONS

``SEC. 411. JOINT FUNDING.

    ``(a) General Authority.--Funds made available to States 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;
            ``(3) such program provides services in a coordinated 
        manner with services provided under this Act; and
            ``(4) such funds would be 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) Section 123, title II, and title III of the Job 
        Training Partnership Act.
            ``(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 the use of funds 
as matching funds.

``SEC. 412. 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 would 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. 413. STATE ADMINISTRATIVE COSTS.

    ``(a) General Rule.--Except as provided in subsection (b), for each 
fiscal year for which a State receives assistance under this Act, the 
State shall provide from non-Federal sources for costs the State incurs 
for administration of programs under this Act an amount that is not 
less than the amount provided by the State 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 State is required to provide from 
non-Federal sources for costs the State 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. 414. 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. 415. 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 
        the same academic workload as determined by the institution, 
        and including costs for rental or purchase of any equipment, 
        materials, or supplies required of all students in the same 
        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-Technical Education Services.--Funds made 
available under title II may be used to pay for the costs of 
vocational-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-technical education.

                         ``PART C--DEFINITIONS

``SEC. 421. DEFINITIONS.

    ``Except as otherwise specified in this Act, as used in this Act:
            ``(1) Administration.--The term `administration' means 
        programs of a State necessary for the proper and efficient 
        performance of its duties under this Act, including 
        supervision, but does not include curriculum development 
        programs, personnel development, or research programs.
            ``(2) All aspects of the industry.--The term `all aspects 
        of the industry' means strong experience in, and comprehensive 
        understanding of, the industry that individuals are preparing 
        to enter.
            ``(3) Area vocational-technical education school.--The term 
        `area vocational-technical education school' means--
                    ``(A) a specialized secondary school used 
                exclusively or principally for the provision of 
                vocational-technical education to individuals who are 
                available for study in preparation for entering the 
                labor market;
                    ``(B) the department of a secondary school 
                exclusively or principally used for providing 
                vocational-technical education in not fewer than five 
                different occupational fields to individuals who are 
                available for study in preparation for entering the 
                labor market;
                    ``(C) a technical institute or vocational-technical 
                education school used exclusively or principally for 
                the provision of vocational-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 institute 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 a junior 
                college, or community college, that operates under the 
                policies of the State board and that provides 
                vocational-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 
        individuals with information access on career awareness and 
        planning for their occupational and academic future which shall 
        involve career options, financial aid, and postsecondary 
        options.
            ``(5) 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-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.
            ``(6) Displaced homemaker.--The term `displaced homemaker' 
        means an individual who--
                    ``(A) has worked primarily without remuneration to 
                care for a home and family, and for that reason has 
                diminished marketable skills; or
                    ``(B) is a parent whose youngest dependent child 
                will become ineligible to receive assistance under 
                title I of the Personal Responsibility and Work 
                Opportunity Reconciliation Act of 1996 not later than 2 
                years after the date of which the parent applies for 
                assistance under this title.
            ``(7) Educational service agency.--The term `educational 
        service agency' means a regional public multiservice agency 
        authorized by State statute to develop and manage a service or 
        program and provide the service or program to a local 
        educational agency.
            ``(8) Eligible recipient.--The term `eligible recipient' 
        means a local educational agency, an area vocational-technical 
        education school, an educational service agency, an institution 
        of higher education (as such term is defined in section 1201(a) 
        of the Higher Education Act of 1965 (20 U.S.C. 1141(a))), and a 
        consortium of such entities.
            ``(9) Local educational agency.--The term `local 
        educational agency' has the meaning given such term in section 
        14101 of the Elementary and Secondary Education Act of 1965 (20 
        U.S.C. 8801).
            ``(10) 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.
            ``(11) Representatives of employees.--The term 
        `representatives of employees' means--
                    ``(A) individuals who have been elected by 
                organizations, associations, or a network of similar 
                institutions to represent the economic interests of 
                employees at a significant segment of workplaces; or
                    ``(B) individuals from organizations, associations, 
                or a network of similar institutions, with expertise to 
                represent, or experience representing, the interests of 
                employees with respect to vocational-technical 
                education.
            ``(12) 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).
            ``(13) Special populations.--The term `special populations' 
        means individuals with disabilities, economically disadvantaged 
        individuals, individuals of limited English proficiency, and 
        individuals participating in nontraditional training and 
        employment.
            ``(14) Secretary.--The term `Secretary' means the Secretary 
        of Education.
            ``(15) State.--The term `State' means each of the several 
        States of the United States, the District of Columbia, and the 
        Commonwealth of Puerto Rico.
            ``(16) 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-technical education through the integration 
                of academic and vocational-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.
            ``(17) Vocational-technical education.--The term 
        `vocational-technical education' means organized educational 
        programs that--
                    ``(A) offer a sequence of courses that provide 
                individuals with the academic knowledge and skills the 
                individuals need to prepare for further education and 
                careers in current or emerging occupations which 
                require other than a baccalaureate or an advanced 
                degree; 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, and 
                occupation-specific skills, of an individual.
            ``(18) Vocational student organization.--The term 
        `vocational student organization' means an organization, for 
        individuals enrolled in programs of vocational-technical 
        education programs, that engages in programs as an integral 
        part of the instructional component of such programs, which 
        organization may have State and national units.''.

SEC. 402. REPEAL OF SMITH-HUGHES VOCATIONAL EDUCATION ACT.

    The Act of February 23, 1917 (39 Stat. 929; 20 U.S.C. 11) (commonly 
known as the ``Smith-Hughes Vocational Education Act'') is repealed.

SEC. 403. EFFECTIVE DATE.

    Except as otherwise provided, the repeals and amendments made by 
this Act shall take effect on the date of the enactment of the Carl D. 
Perkins Vocational-Technical Education Act Amendments of 1997.

            Passed the House of Representatives July 22, 1997.

            Attest:

                                                                 Clerk.