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105th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES
 2d Session                                                     105-800
_______________________________________________________________________


 
     CARL D. PERKINS VOCATIONAL-TECHNICAL EDUCATION ACT AMENDMENTS

                                _______
                                

                October 8, 1998.--Ordered to be printed

_______________________________________________________________________


Mr. Goodling, from the committee of conference, submitted the following

                           CONFERENCE REPORT

                        [To accompany H.R. 1853]

      The committee of conference on the disagreeing votes of 
the two Houses on the amendment of the Senate to the bill (H.R. 
1853), to amend the Carl D. Perkins Vocational and Applied 
Technology Education Act, having met, after full and free 
conference, have agreed to recommend and do recommend to their 
respective Houses as follows:
      That the House recede from its disagreement to the 
amendment of the Senate and agree to the same with an amendment 
as follows:
      In lieu of the matter proposed to be inserted by the 
Senate amendment, insert the following:

SECTION 1. SHORT TITLE; AMENDMENT.

    (a) Short Title.--This Act may be cited as the ``Carl D. 
Perkins Vocational and Applied Technology Education Amendments 
of 1998''.
    (b) Amendment.--The Carl D. Perkins Vocational and Applied 
Technology Education Act (20 U.S.C. 2301 et seq.) is amended to 
read as follows:

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

    ``(a) Short Title.--This Act may be cited as the `Carl D. 
Perkins Vocational and Technical Education Act of 1998.
    ``(b) Table of Contents.--The table of contents for this 
Act is as follows:

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

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

                   ``Part A--Allotment and Allocation

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

                       ``Part B--State Provisions

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

                       ``Part C--Local Provisions

    ``Sec. 131. Distribution of funds to secondary school programs.
    ``Sec. 132. Distribution of funds for postsecondary vocational and 
              technical education programs.
    ``Sec. 133. Special rules for vocational and technical education.
    ``Sec. 134. Local plan for vocational and technical education 
              programs.
    ``Sec. 135. Local uses of funds.

                     ``TITLE II--TECH-PREP EDUCATION

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

                     ``TITLE III--GENERAL PROVISIONS

               ``Part A--Federal Administrative Provisions

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

                ``Part B--State Administrative Provisions

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

``SEC. 2. PURPOSE.

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

``SEC. 3. DEFINITIONS.

    ``In this Act:
            ``(1) Administration.--The term `administration', 
        when used with respect to an eligible agency or 
        eligible recipient, means activities necessary for the 
        proper and efficient performance of the eligible agency 
        or eligible recipient's duties under this Act, 
        including supervision, but does not include curriculum 
        development activities, personnel development, or 
        research activities.
            ``(2) All aspects of an industry.--The term `all 
        aspects of an industry' means strong experience in, and 
        comprehensive understanding of, the industry that the 
        individual is preparing to enter.
            ``(3) Area vocational and technical education 
        school.--The term `area vocational and technical 
        education school' means--
                    ``(A) a specialized public secondary school 
                used exclusively or principally for the 
                provision of vocational and technical education 
                to individuals who are available for study in 
                preparation for entering the labor market;
                    ``(B) the department of a public secondary 
                school exclusively or principally used for 
                providing vocational and technical education in 
                not fewer than 5 different occupational fields 
                to individuals who are available for study in 
                preparation for entering the labor market;
                    ``(C) a public or nonprofit technical 
                institution or vocational and technical 
                education school used exclusively or 
                principally for the provision of vocational and 
                technical education to individuals who have 
                completed or left secondary school and who are 
                available for study in preparation for entering 
                the labor market, if the institution or school 
                admits as regular students both individuals who 
                have completed secondary school and individuals 
                who have left secondary school; or
                    ``(D) the department or division of an 
                institution of higher education, that operates 
                under the policies of the eligible agency and 
                that provides vocational and technical 
                education in not fewer than five different 
                occupational fields leading to immediate 
                employment but not necessarily leading to a 
                baccalaureate degree, if the department or 
                division admits as regular students both 
                individuals who have completed secondary school 
                and individuals who have left secondary school.
            ``(4) Career guidance and academic counseling.--The 
        term `career guidance and academic counseling' means 
        providing access to information regarding career 
        awareness and planning with respect to an individual's 
        occupational and academic future that shall involve 
        guidance and counseling with respect to career options, 
        financial aid, and postsecondary options.
            ``(5) Charter school.--The term `charter school' 
        has the meaning given the term in section10306 of the 
Elementary and Secondary Education Act of 1965 (20 U.S.C. 8066).
            ``(6) Cooperative education.--The term `cooperative 
        education' means a method of instruction of education 
        for individuals who, through written cooperative 
        arrangements between a school and employers, receive 
        instruction, including required academic courses and 
        related vocational and technical education instruction, 
        by alternation of study in school with a job in any 
        occupational field, which alternation shall be planned 
        and supervised by the school and employer so that each 
        contributes to the education and employability of the 
        individual, and may include an arrangement in which 
        work periods and school attendance may be on alternate 
        half days, full days, weeks, or other periods of time 
        in fulfilling the cooperative program.
            ``(7) Displaced homemaker.--The term `displaced 
        homemaker' means an individual who--
                    ``(A)(i) has worked primarily without 
                remuneration to care for a home and family, and 
                for that reason has diminished marketable 
                skills;
                    ``(ii) has been dependent on the income of 
                another family member but is no longer 
                supported by that income; or
                    ``(iii) is a parent whose youngest 
                dependent child will become ineligible to 
                receive assistance under part A of title IV of 
                the Social Security Act (42 U.S.C. 601 et seq.) 
                not later than 2 years after the date on which 
                the parent applies for assistance under this 
                title; and
                    ``(B) is unemployed or underemployed and is 
                experiencing difficulty in obtaining or 
                upgrading employment.
            ``(8) Educational service agency.--The term 
        `educational service agency' has the meaning given the 
        term in section 14101 of the Elementary and Secondary 
        Education Act of 1965.
            ``(9) Eligible agency.--The term `eligible agency' 
        means a State board designated or created consistent 
        with State law as the sole State agency responsible for 
        the administration of vocational and technical 
        education or for supervision of the administration of 
        vocational and technical education in the State.
            ``(10) Eligible institution.--The term `eligible 
        institution' means--
                    ``(A) an institution of higher education;
                    ``(B) a local educational agency providing 
                education at the postsecondary level;
                    ``(C) an area vocational and technical 
                education school providing education at the 
                postsecondary level;
                    ``(D) a postsecondary educational 
                institution controlled by the Bureau of Indian 
                Affairs or operated by or on behalf of any 
                Indian tribe that is eligible to contract with 
                the Secretary of the Interior for the 
                administration of programs under the Indian 
                Self-Determination Act or the Act of April 16, 
                1934 (48 Stat. 596; 25 U.S.C. 452 et seq.);
                    ``(E) an educational service agency; or
                    ``(F) a consortium of 2 or more of the 
                entities described in subparagraphs (A) through 
                (E).
            ``(11) Eligible recipient.--The term `eligible 
        recipient' means--
                    ``(A) a local educational agency, an area 
                vocational and technical education school, an 
                educational service agency, or a consortium, 
                eligible to receive assistance under section 
                131; or
                    ``(B) an eligible institution or consortium 
                of eligible institutions eligible to receive 
                assistance under section 132.
            ``(12) Governor.--The term `Governor' means the 
        chief executive officer of a State or an outlying area.
            ``(13) Individual with limited english 
        proficiency.--The term `individual with limited English 
        proficiency' means a secondary school student, an 
        adult, or an out-of-school youth, who has limited 
        ability in speaking, reading, writing, or understanding 
        the English language, and--
                    ``(A) whose native language is a language 
                other than English; or
                    ``(B) who lives in a family or community 
                environment in which a language other than 
                English is the dominant language.
            ``(14) Individual with a disability.--
                    ``(A) In general.--The term `individual 
                with a disability' means an individual with any 
                disability (as defined in section 3 of the 
                Americans with Disabilities Act of 1990 (42 
                U.S.C. 12102)).
                    ``(B) Individuals with disabilities.--The 
                term `individuals with disabilities' means more 
                than 1 individual with a disability.
            ``(15) Institution of higher education.--The term 
        `institution of higher education' has the meaning given 
        the term in section 101 of the Higher Education Act of 
        1965.
            ``(16) Local educational agency.--The term `local 
        educational agency' has the meaning given the term in 
        section 14101 of the Elementary and Secondary Education 
        Act of 1965 (20 U.S.C. 8801).
            ``(17) Nontraditional training and employment.--The 
        term `nontraditional training and employment' means 
        occupations or fields of work, including careers in 
        computer science, technology, and other emerging high 
        skill occupations, for which individuals from one 
        gender comprise less than 25 percent of the individuals 
        employed in each such occupation or field of work.
            ``(18) Outlying area.--The term `outlying area' 
        means the United States Virgin Islands, Guam, American 
        Samoa, the Commonwealth of the Northern Mariana 
        Islands, the Republic of the Marshall Islands, the 
        Federated States of Micronesia, and the Republic of 
        Palau.
            ``(19) Postsecondary educational institution.--The 
        term `postsecondary educational institution' means--
                    ``(A) an institution of higher education 
                that provides not less than a 2-year program of 
                instruction that is acceptable for credit 
                toward a bachelor's degree;
                    ``(B) a tribally controlled college or 
                university; or
                    ``(C) a nonprofit educational institution 
                offering certificate or apprenticeship programs 
                at the postsecondary level.
            ``(20) School dropout.--The term `school dropout' 
        means an individual who is no longer attending any 
        school and who has not received a secondary school 
        diploma or its recognized equivalent.
            ``(21) Secondary school.--The term `secondary 
        school' has the meaning given the term in section 14101 
        of the Elementary and Secondary Education Act of 1965 
        (20 U.S.C. 8801).
            ``(22) Secretary.--The term `Secretary' means the 
        Secretary of Education.
            ``(23) Special populations.--The term `special 
        populations' means--
                    ``(A) individuals with disabilities;
                    ``(B) individuals from economically 
                disadvantaged families, including foster 
                children;
                    ``(C) individuals preparing for 
                nontraditional training and employment;
                    ``(D) single parents, including single 
                pregnant women;
                    ``(E) displaced homemakers; and
                    ``(F) individuals with other barriers to 
                educational achievement, including individuals 
                with limited English proficiency.
            ``(24) State.--The term `State', unless otherwise 
        specified, means each of the several States of the 
        United States, the District of Columbia, the 
        Commonwealth of Puerto Rico, and each outlying area.
            ``(25) Support services.--The term `support 
        services' means services related to curriculum 
        modification, equipment modification, classroom 
        modification, supportive personnel, and instructional 
        aids and devices.
            ``(26) Tech-prep program.--The term `tech-prep 
        program' means a program of study that--
                    ``(A) combines at least 2 years of 
                secondary education (as determined under State 
                law) and 2 years of postsecondary education in 
                a nonduplicative sequential course of study;
                    ``(B) strengthens the applied academic 
                component of vocational and technical education 
                through the integration of academic, and 
                vocational and technical, instruction;
                    ``(C) provides technical preparation in an 
                area such as engineering technology, applied 
                science, a mechanical, industrial, or practical 
                art or trade, agriculture, a health occupation, 
                business, or applied economics;
                    ``(D) builds student competence in 
                mathematics, science, and communications 
                (including through applied academics) in a 
                coherent sequence of courses; and
                    ``(E) leads to an associate degree or a 
                certificate in a specific career field, and to 
                high skill, high wage employment, or further 
                education.
            ``(27) Tribally controlled college or university.--
        The term `tribally controlled college or university' 
        has the meaning given such term in section 2 of the 
        Tribally Controlled College or University Assistance 
        Act of 1978 (25 U.S.C. 1801(a)(4)).
            ``(28) Tribally controlled postsecondary vocational 
        and technical institution.--The term `tribally 
        controlled postsecondary vocational and technical 
        institution' means an institution of higher education 
        (as defined in section 101 of the Higher Education Act 
        of 1965, except that paragraph (2) of such section 
        shall not be applicable and the reference to Secretary 
        in paragraph (5)(A) of such section shall be deemed to 
        refer to the Secretary of the Interior) that--
                    ``(A) is formally controlled, or has been 
                formally sanctioned or chartered, by the 
                governing body of an Indian tribe or Indian 
                tribes;
                    ``(B) offers a technical degree or 
                certificate granting program;
                    ``(C) is governed by a board of directors 
                or trustees, a majority of whom are Indians;
                    ``(D) demonstrates adherence to stated 
                goals, a philosophy, or a plan of operation, 
                that fosters individual Indian economic and 
                self-sufficiency opportunity, including 
                programs that are appropriate to stated tribal 
                goals of developing individual 
                entrepreneurships and self-sustaining economic 
                infrastructures on reservations;
                    ``(E) has been in operation for at least 3 
                years;
                    ``(F) holds accreditation with or is a 
                candidate for accreditation by a nationally 
                recognized accrediting authority for 
                postsecondary vocational and technical 
                education; and
                    ``(G) enrolls the full-time equivalent of 
                not less than 100 students, of whom a majority 
                are Indians.
            (29) Vocational and technical education.--The term 
        `vocational and technical education' means organized 
        educational activities that--
                    ``(A) offer a sequence of courses that 
                provides individuals with the academic and 
                technical knowledge and skills the individuals 
                need to prepare for further education and for 
                careers (other than careers requiring a 
                baccalaureate, master's, or doctoral degree) in 
                current or emerging employment sectors; and
                    ``(B) include competency-based applied 
                learning that contributes to the academic 
                knowledge, higher-order reasoning and problem-
                solving skills, work attitudes, general 
                employability skills, technical skills, and 
                occupation-specific skills, of an individual.
            ``(30) Vocational and technical student 
        organization.--
                    ``(A) In general.--The term `vocational and 
                technical student organization' means an 
                organization for individuals enrolled in a 
                vocational and technical education program that 
                engages in vocational and technical activities 
                as an integral part of the instructional 
                program.
                    ``(B) State and national units.--An 
                organization described in subparagraph (A) may 
                have State and national units that aggregate 
                the work and purposes of instruction in 
                vocational and technical education at the local 
                level.

``SEC. 4. TRANSITION PROVISIONS.

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

``SEC. 5. PRIVACY.

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

``SEC. 6. LIMITATION.

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

``SEC. 7. SPECIAL RULE.

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

``SEC. 8. AUTHORIZATION OF APPROPRIATIONS.

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

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

                   ``PART A--ALLOTMENT AND ALLOCATION

``SEC. 111. RESERVATIONS AND STATE ALLOTMENT.

    ``(a) Reservations and State Allotment.--
            ``(1) Reservations.--From the sum appropriated 
        under section 8 for each fiscal year, the Secretary 
        shall reserve--
                    ``(A) 0.2 percent to carry out section 115;
                    ``(B) 1.50 percent to carry out section 
                116, of which--
                            ``(i) 1.25 percent of the sum shall 
                        be available to carry out section 
                        116(b); and
                            ``(ii) 0.25 percent of the sum 
                        shall be available to carry out section 
                        116(h); and
                    ``(C) in the case of each of the fiscal 
                years 2000 through 2003, 0.54 percent to carry 
                out section 503 of Public Law 105-220.
            ``(2) State allotment formula.--Subject to 
        paragraphs (3) and (4), from the remainder of the sums 
        appropriated under section 8 and not reserved under 
        paragraph (1) for a fiscal year, the Secretary shall 
        allot to a State for the fiscal year--
                    ``(A) an amount that bears the same ratio 
                to 50 percent of the sums being allotted as the 
                product of the population aged 15 to 19 
                inclusive, in the State in the fiscal year 
                preceding the fiscal year for which the 
                determination is made and the State's allotment 
                ratio bears to the sum of the corresponding 
                products for all the States;
                    ``(B) an amount that bears the same ratio 
                to 20 percent of the sums being allotted as the 
                product of the population aged 20 to 24, 
                inclusive, in the State in the fiscal year 
                preceding the fiscal year for which the 
                determination is made and the State's allotment 
                ratio bears to the sum of the corresponding 
                products for all the States;
                    ``(C) an amount that bears the same ratio 
                to 15 percent of the sums being allotted as the 
                product of the population aged 25 to 65, 
                inclusive, in the State in the fiscal year 
                preceding the fiscal year for which the 
                determination is made and the State's allotment 
                ratio bears to the sum of the corresponding 
                products for all the States; and
                    ``(D) an amount that bears the same ratio 
                to 15 percent of the sums being allotted as the 
                amounts allotted to the State under 
                subparagraphs (A), (B), and (C) for such years 
                bears to the sum of the amounts allotted to all 
                the States under subparagraphs (A), (B), and 
                (C) for such year.
            ``(3) Minimum allotment.--
                    ``(A) In general.--Notwithstanding any 
                other provision of law and subject to 
                subparagraphs (B) and (C), and paragraph (4), 
                no State shall receive for a fiscal year under 
                this subsection less than \1/2\ of 1 percent of 
                the amount appropriated under section 8 and not 
                reserved under paragraph (1) for such fiscal 
                year. Amounts necessary for increasing such 
                payments to States to comply with the preceding 
                sentence shall be obtained by ratably reducing 
                the amounts to be paid to other States.
                    ``(B) Requirement.--No State, by reason of 
                the application of subparagraph (A), shall 
                receive for a fiscal year more than 150 percent 
                of the amount the State received under this 
                subsection for the preceding fiscal year (or in 
                the case of fiscal year 1999 only, under 
                section 101 of the Carl D. Perkins Vocational 
                and Applied Technology Education Act, as such 
                section was in effect on the day before the 
                date of enactment of the Carl D. Perkins 
                Vocational and Applied Technology Education 
                Amendments of 1998).
                    ``(C) Special rule.--
                            ``(i) In general.--Subject to 
                        paragraph (4), no State, by reason of 
                        the application of subparagraph (A), 
                        shall be allotted for a fiscal year 
                        more than the lesser of--
                                    ``(I) 150 percent of the 
                                amount that the State received 
                                in the preceding fiscal year 
                                (or in the case of fiscal year 
                                1999 only, under section 101 of 
                                the Carl D. Perkins Vocational 
                                andApplied Technology Education 
Act, as such section was in effect on the day before the date of 
enactment of the Carl D. Perkins Vocational and Applied Technology 
Education Amendments of 1998); and
                                    ``(II) the amount 
                                calculated under clause (ii).
                            ``(ii) Amount.--The amount 
                        calculated under this clause shall be 
                        determined by multiplying--
                                    ``(I) the number of 
                                individuals in the State 
                                counted under paragraph (2) in 
                                the preceding fiscal year; by
                                    ``(II) 150 percent of the 
                                national average per pupil 
                                payment made with funds 
                                available under this section 
                                for that year (or in the case 
                                of fiscal year 1999, only, 
                                under section 101 of the Carl 
                                D. Perkins Vocational and 
                                Applied Technology Education 
                                Act, as such section was in 
                                effect on the day before the 
                                date of enactment of the Carl 
                                D. Perkins Vocational and 
                                Applied Technology Education 
                                Amendments of 1998).
            ``(4) Hold harmless.--
                    ``(A) In general.--No State shall receive 
                an allotment under this section for a fiscal 
                year that is less than the allotment the State 
                received under part A of title I of the Carl D. 
                Perkins Vocational and Applied Technology 
                Education Act (20 U.S.C. 2311 et seq.) (as such 
                part was in effect on the day before the date 
                of enactment of the Carl D. Perkins Vocational 
                and Applied Technology Education Amendments of 
                1998) for fiscal year 1998.
                    ``(B) Ratable reduction.--If for any fiscal 
                year the amount appropriated for allotments 
                under this section is insufficient to satisfy 
                the provisions of subparagraph (A), the 
                payments to all States under such subparagraph 
                shall be ratably reduced.
    ``(b) Reallotment.--If the Secretary determines that any 
amount of any State's allotment under subsection (a) for any 
fiscal year will not be required for such fiscal year for 
carrying out the activities for which such amount has been 
allotted, the Secretary shall make such amount available for 
reallotment. Any such reallotment among other States shall 
occur on such dates during the same year as the Secretary shall 
fix, and shall be made on the basis of criteria established by 
regulation. No funds may be reallotted for any use other than 
the use for which the funds were appropriated. Any amount 
reallotted to a State under this subsection for any fiscal year 
shall remain available for obligation during the succeeding 
fiscal year and shall be deemed to be part of the State's 
allotment for the year in which the amount is obligated.
    ``(c) Allotment Ratio.--
            ``(1) In general.--The allotment ratio for any 
        State shall be 1.00 less the product of--
                    ``(A) 0.50; and
                    ``(B) the quotient obtained by dividing the 
                per capita income for the State by the per 
                capita income for all the States (exclusive of 
                the Commonwealth of Puerto Rico and the United 
                States Virgin Islands), except that--
                            ``(i) the allotment ratio in no 
                        case shall be more than 0.60 or less 
                        than 0.40; and
                            ``(ii) the allotment ratio for the 
                        Commonwealth of Puerto Rico and the 
                        United States Virgin Islands shall be 
                        0.60.
            ``(2) Promulgation.--The allotment ratios shall be 
        promulgated by the Secretary for each fiscal year 
        between October 1 and December 31 of the fiscal year 
        preceding the fiscal year for which the determination 
        is made. Allotment ratios shall be computed on the 
        basis of the average of the appropriate per capita 
        incomes for the 3 most recent consecutive fiscal years 
        for which satisfactory data are available.
            ``(3) Definition of per capita income.--For the 
        purpose of this section, the term `per capita income' 
        means, with respect to a fiscal year, the total 
        personal income in the calendar year ending in such 
        year, divided by the population of the area concerned 
        in such year.
            ``(4) Population determination.--For the purposes 
        of this section, population shall be determined by the 
        Secretary on the basis of the latest estimates 
        available to the Department of Education.
    ``(d) Definition of State.--For the purpose of this 
section, the term `State' means each of the several States of 
the United States, the District of Columbia, the Commonwealth 
of Puerto Rico, and the United States Virgin Islands.

``SEC. 112. WITHIN STATE ALLOCATION.

    ``(a) In General.--From the amount allotted to each State 
under section 111 for a fiscal year, the State board 
(hereinafter referred to as the `eligible agency') shall make 
available--
            ``(1) not less than 85 percent for distribution 
        under section 131 or 132, of which not more than 10 
        percent of the 85 percent may be used in accordance 
        with subsection (c);
            ``(2) not more than 10 percent to carry out State 
        leadership activities described in section 124, of 
        which--
                    ``(A) an amount equal to not more than 1 
                percent of the amount allotted to the State 
                under section 111 for the fiscal year shall be 
                available to serve individuals in State 
                institutions, such as State correctional 
                institutions and institutions that serve 
                individuals with disabilities; and
                    ``(B) not less than $60,000 and not more 
                than $150,000 shall be available for services 
                that prepare individuals for nontraditional 
                training and employment; and
            ``(3) an amount equal to not more than 5 percent, 
        or $250,000, whichever is greater, for administration 
        of the State plan, which may be used for the costs of--
                    ``(A) developing the State plan;
                    ``(B) reviewing the local plans;
                    ``(C) monitoring and evaluating program 
                effectiveness;
                    ``(D) assuring compliance with all 
                applicable Federal laws; and
                    ``(E) providing technical assistance.
    ``(b) Matching Requirement.--Each eligible agency receiving 
funds made available under subsection (a)(3) shall match, from 
non-Federal sources and on a dollar-for-dollar basis, the funds 
received under subsection (a)(3).
    ``(c) Reserve.--
            ``(1) In general.--From amounts made available 
        under subsection (a)(1) to carry out this subsection, 
        an eligible agency may award grants to eligible 
        recipients for vocational and technical education 
        activities described in section 135 in--
                    ``(A) rural areas;
                    ``(B) areas with high percentages of 
                vocational and technical education students; 
                and
                    ``(C) areas with high numbers of vocational 
                and technical students; and
                    ``(D) communities negatively impacted by 
                changes resulting from the amendments made by 
                the Carl D. Perkins Vocational and Applied 
                Technology Education Amendments of 1998 to the 
                within State allocation under section 231 of 
                the Carl D. Perkins Vocational and Applied 
                Technology Education Act (as such section 231 
                was in effect on the day before the date of 
                enactment of the Carl D. Perkins Vocational and 
                Applied Technology Education Amendments of 
                1998).
            ``(2) Special rule.--Each eligible agency awarding 
        a grant under this subsection shall use the grant funds 
        to serve at least 2 of the categories described in 
        subparagraphs (A) through (D) of paragraph (1).

``SEC. 113. ACCOUNTABILITY.

    ``(a) Purpose.--The purpose of this section is to establish 
a State performance accountability system, comprised of the 
activities described in this section, to assess the 
effectiveness of the State in achieving statewide progress in 
vocational and technical education, and to optimize the return 
of investment of Federal funds in vocational and technical 
education activities.
    ``(b) State Performance Measures.--
            ``(1) In general.--Each eligible agency, with input 
        from eligible recipients, shall establish performance 
        measures for a State that consist of--
                    ``(A) the core indicators of performance 
                described in paragraph (2)(A);
                    ``(B) any additional indicators of 
                performance (if any) identified by the eligible 
                agency under paragraph (2)(B); and
                    ``(C) a State adjusted level of performance 
                described in paragraph (3)(A) for each core 
                indicator of performance, and State levels of 
                performance described in paragraph (3)(B) for 
                each additional indicator of performance.
            ``(2) Indicators of performance.--
                    ``(A) Core indicators of performance.--Each 
                eligible agency shall identify in the State 
                plan core indicators of performance that 
                include, at a minimum, measures of each of the 
                following:
                            ``(i) Student attainment of 
                        challenging State established academic, 
                        and vocational and technical, skill 
                        proficiencies.
                            ``(ii) Student attainment of a 
                        secondary school diploma or its 
                        recognized equivalent, a proficiency 
                        credential in conjunction with a 
                        secondary school diploma, or a 
                        postsecondary degree or credential.
                            ``(iii) Placement in, retention in, 
                        and completion of, postsecondary 
                        education or advanced training, 
                        placement in military service, or 
                        placement or retention in employment.
                            ``(iv) Student participation in and 
                        completion of vocational and technical 
                        education programs that lead to 
                        nontraditional training and employment.
                    ``(B) Additional indicators of 
                performance.--An eligible agency, with input 
                from eligible recipients, may identify in the 
                State plan additional indicators of performance 
                for vocational and technical education 
                activities authorized under the title.
                    ``(C) Existing indicators.--If a State 
                previously has developed State performance 
                measures that meet the requirements of this 
                section, the State may use such performance 
                measures to measure the progress of vocational 
                and technical education students.
                    ``(D) State role.--Indicators of 
                performance described in this paragraph shall 
                be established solely by each eligible agency 
                with input from eligible recipients.
            ``(3) Levels of performance.--
                    ``(A) State adjusted levels of performance 
                for core indicators of performance.--
                            ``(i) In general.--Each eligible 
                        agency, with input from eligible 
                        recipients, shall establish in the 
                        State plan submitted under section 122, 
                        levels of performance for each of the 
                        core indicators of performance 
                        described in paragraph (2)(A) for 
                        vocational and technical education 
                        activities authorized under this title. 
                        The levels of performance established 
                        under this subparagraph shall, at a 
                        minimum--
                                    ``(I) be expressed in a 
                                percentage or numerical form, 
                                so as to be objective, 
                                quantifiable, and measurable; 
                                and
                                    ``(II) require the State to 
                                continually make progress 
                                toward improving the 
                                performance of vocational and 
                                technical education students.
                            ``(ii) Identification in the state 
                        plan.--Each eligible agency shall 
                        identify, in the State plan submitted 
                        under section 122, levels of 
                        performance for each of the core 
                        indicators of performance for the first 
                        2 program years covered by the State 
                        plan.
                            ``(iii) Agreement on state adjusted 
                        levels of performance for first 2 
                        years.--The Secretary and each eligible 
                        agency shall reach agreement on the 
                        levels of performance for each of the 
                        core indicators of performance, for the 
                        first 2 program years covered by the 
                        State plan, taking into account the 
                        levels identified in the State plan 
                        under clause (ii) and the factors 
                        described in clause (vi). The levels of 
                        performance agreed to under this clause 
                        shall be considered to be the State 
                        adjusted level of performance for the 
                        State for such years and shall be 
                        incorporated into the State plan prior 
                        to the approval of such plan.
                            ``(iv) Role of the secretary.--The 
                        role of the Secretary in the agreement 
                        described in clauses (iii) and (v) is 
                        limited to reaching agreement on the 
                        percentage or number of students who 
                        attain the State adjusted levels of 
                        performance.
                            ``(v) Agreement on state adjusted 
                        levels of performance for 3rd, 4th and 
                        5th years.--Prior to the third program 
                        year covered by the State plan, the 
                        Secretary and each eligible agency 
                        shall reach agreement on the State 
                        adjusted levels of performance for each 
                        of the core indicators of performance 
                        for the third, fourth and fifth program 
                        years covered by the State plan, taking 
                        into account the factors described in 
                        clause (vi). The State adjusted levels 
                        of performance agreed to under this 
                        clause shall be considered to be the 
                        State adjusted levels of performance 
                        for the State for such years and shall 
                        be incorporated into the State plan.
                            ``(vi) Factors.--The agreement 
                        described in clause (iii) or (v) shall 
                        take into account--
                                    ``(I) how the levels of 
                                performance involved compare 
                                with the State adjusted levels 
                                of performance established for 
                                other States taking into 
                                account factors including the 
                                characteristics of participants 
                                when the participants entered 
                                the program and the services or 
                                instruction to be provided; and
                                    ``(II) the extent to which 
                                such levels of performance 
                                promote continuous improvement 
                                on the indicators of 
                                performance by such State.
                            ``(vii) Revisions.--If 
                        unanticipated circumstances arise in a 
                        State resulting in a significant change 
                        in the factors described in clause 
                        (vi)(II), the eligible agency may 
                        request that the State adjusted levels 
                        of performance agreed to under clause 
                        (iii) or (vi) be revised. The Secretary 
                        shall issue objective criteria and 
                        methods for making such revisions.
                    ``(B) Levels of performance for additional 
                indicators.--Each eligible agency shall 
                identify in the State plan, State levels of 
                performance for each of the additional 
                indicators of performance described in 
                paragraph (2)(B). Such levels shall be 
                considered to be theState levels of performance 
for purposes of this title.
    ``(c) Report.--
            ``(1) In general.--Each eligible agency that 
        receives an allotment under section 111 shall annually 
        prepare and submit to the Secretary a report 
        regarding--
                    ``(A) the progress of the State in 
                achieving the State adjusted levels of 
                performance on the core indicators of 
                performance; and
                    ``(B) information on the levels of 
                performance achieved by the State with respect 
                to the additional indicators of performance, 
                including the levels of performance for special 
                populations.
            ``(2) Special populations.--The report submitted by 
        the eligible agency in accordance with paragraph (1) 
        shall include a quantifiable description of the 
        progress special populations participating in 
        vocational and technical education programs have made 
        in meeting the State adjusted levels of performance 
        established by the eligible agency.
            ``(3) Information dissemination.--The Secretary--
                    ``(A) shall make the information contained 
                in such reports available to the general 
                public;
                    ``(B) shall disseminate State-by-State 
                comparisons of the information; and
                    ``(C) shall provide the appropriate 
                committees of Congress copies of such reports.

``SEC. 114. NATIONAL ACTIVITIES.

    ``(a) Program Performance Information.--
            ``(1) In general.--The Secretary shall collect 
        performance information about, and report on, the 
        condition of vocational and technical education and on 
        the effectiveness of State and local programs, 
        services, and activities carried out under this title 
        in order to provide the Secretary and Congress, as well 
        as Federal, State, local, and tribal agencies, with 
        information relevant to improvement in the quality and 
        effectiveness of vocational and technical education. 
        The Secretary annually shall report to Congress on the 
        Secretary's aggregate analysis of performance 
        information collected each year pursuant to this title, 
        including an analysis of performance data regarding 
        special populations.
            ``(2) Compatibility.--The Secretary shall, to the 
        extent feasible, ensure that the performance 
        information system is compatible with other Federal 
        information systems.
            ``(3) Assessments.--As a regular part of its 
        assessments, the National Center for Education 
        Statistics shall collect and report information on 
        vocational and technical education for a nationally 
        representative sample of students. Such assessment may 
        include international comparisons.
    ``(b) Miscellaneous Provisions.--
            ``(1) Collection of information at reasonable 
        cost.--The Secretary shall take such action as may be 
        necessary to secure at reasonable cost the information 
        required by this title. To ensure reasonable cost, the 
        Secretary, in consultation with the National Center for 
        Education Statistics, the Office of Vocational and 
        Adult Education, and an entity assisted under section 
        118 shall determine the methodology to be used and the 
        frequency with which information is to be collected.
            ``(2) Cooperation of states.--All eligible agencies 
        receiving assistance under this Act shall cooperate 
        with the Secretary in implementing the information 
        systems developed pursuant to this Act.
    ``(c) Research, Development, Dissemination, Evaluation and 
Assessment.--
            ``(1) Single plan.--
                    ``(A) In general.--The Secretary may, 
                directly or through grants, contracts, or 
                cooperative agreements, carry out research, 
                development, dissemination, evaluation and 
                assessment, capacity building, and technical 
                assistance with regard to the vocational and 
                technical education programs under this Act. 
                The Secretary shall develop a single plan for 
                such activities.
                    ``(B) Plan.--Such plan shall--
                            ``(i) identify the vocational and 
                        technical education activities 
                        described in subparagraph (A) the 
                        Secretary will carry out under this 
                        section;
                            ``(ii) describe how the Secretary 
                        will evaluate such vocational and 
                        technical education activities in 
                        accordance with paragraph (3); and
                            ``(iii) include such other 
                        information as the Secretary determines 
                        to be appropriate.
            ``(2) Independent advisory panel.--The Secretary 
        shall appoint an independent advisory panel, consisting 
        of vocational and technical education administrators, 
        educators, researchers, and representatives of labor 
        organizations, businesses, parents, guidance and 
        counseling professionals, and other relevant groups, to 
        advise the Secretary on the implementation of the 
        assessment described in paragraph (3), including the 
        issues to be addressed, the methodology of the studies 
        involved, and the findings and recommendations 
        resulting from the assessment. The panel shall submit 
        to the Committee on Education and the Workforce of the 
        House of Representatives, the Committee on Labor and 
        Human Resources of the Senate, and the Secretary an 
        independent analysis of the findings and 
        recommendations resulting from the assessment described 
        in paragraph (3). The Federal Advisory Committee Act (5 
        U.S.C. App.) shall not apply to the panel established 
        under this subsection.
            ``(3) Evaluation and assessment.--
                    ``(A) In general.--From amounts made 
                available under paragraph (8), the Secretary 
                shall provide for the conduct of an independent 
                evaluation and assessment of vocational and 
                technical education programs under this Act 
                through studies and analyses conducted 
                independently through grants, contracts, and 
                cooperative agreements that are awarded on a 
                competitive basis.
                    ``(B) Contents.--The assessment required 
                under paragraph (1) shall include descriptions 
                and evaluations of--
                            ``(i) the extent to which State, 
                        local, and tribal entities have 
                        developed, implemented, or improved 
                        State and local vocational and 
                        technical education programs and the 
                        effect of programs assisted under this 
                        Act on that development, 
                        implementation, or improvement, 
                        including the capacity of State, 
                        tribal, and local vocational and 
                        technical education systems to achieve 
                        the purpose of this Act;
                            ``(ii) the extent to which 
                        expenditures at the Federal, State, 
                        tribal, and local levels address 
                        program improvement in vocational and 
                        technical education, including the 
                        impact of Federal allocation 
                        requirements (such as within-State 
                        allocation formulas) on the delivery of 
                        services;
                            ``(iii) the preparation and 
                        qualifications of teachers of 
                        vocational and technical, and academic, 
                        curricula in vocationaland technical 
education programs, as well as shortages of such teachers;
                            ``(iv) participation of students in 
                        vocational and technical education 
                        programs;
                            ``(v) academic and employment 
                        outcomes of vocational and technical 
                        education, including analyses of--
                                    ``(I) the number of 
                                vocational and technical 
                                education students and tech-
                                prep students who meet State 
                                adjusted levels of performance;
                                    ``(II) the extent and 
                                success of integration of 
                                academic, and vocational and 
                                technical, education for 
                                students participating in 
                                vocational and technical 
                                education programs; and
                                    ``(III) the extent to which 
                                vocational and technical 
                                education programs prepare 
                                students for subsequent 
                                employment in high-wage, high-
                                skill careers or participation 
                                in postsecondary education;
                            ``(vi) employer involvement in, and 
                        satisfaction with, vocational and 
                        technical education programs;
                            ``(vii) the use and impact of 
                        educational technology and distance 
                        learning with respect to vocational and 
                        technical education and tech-prep 
                        programs; and
                            ``(viii) the effect of State 
                        adjusted levels of performance and 
                        State levels of performance on the 
                        delivery of vocational and technical 
                        education services.
                    ``(C) Reports.--
                            ``(i) In general.--The Secretary 
                        shall submit to the Committee on 
                        Education and the Workforce of the 
                        House of Representatives and the 
                        Committee on Labor and Human Resources 
                        of the Senate--
                                    ``(I) an interim report 
                                regarding the assessment on or 
                                before January 1, 2002; and
                                    ``(II) a final report, 
                                summarizing all studies and 
                                analyses that relate to the 
                                assessment and that are 
                                completed after the assessment, 
                                on or before July 1, 2002.
                            ``(ii) Prohibition.--
                        Notwithstanding any other provision of 
                        law, the reports required by this 
                        subsection shall not be subject to any 
                        review outside the Department of 
                        Education before their transmittal to 
                        the Committee on Education and the 
                        Workforce of the House of 
                        Representatives, the Committee on Labor 
                        and Human Resources of the Senate, and 
                        the Secretary, but the President, the 
                        Secretary, and the independent advisory 
                        panel established under paragraph (2) 
                        may make such additional 
                        recommendations to Congress with 
                        respect to the assessment as the 
                        President, the Secretary, or the panel 
                        determine to be appropriate.
            ``(4) Collection of state information and report.--
                    ``(A) In general.--The Secretary may 
                collect and disseminate information from States 
                regarding State efforts to meet State adjusted 
                levels of performance described in section 113.
                    ``(B) Report.--The Secretary shall gather 
                any information collected pursuant to 
                subparagraph (A) and submit a report to the 
                Committee on Education and the Workforce of the 
                House of Representatives and the Committee on 
                Labor and Human Resources of the Senate.
            ``(5) Research.--
                    ``(A) In general.--The Secretary, after 
                consulting with the States, shall award grants, 
                contracts, or cooperative agreements on a 
                competitive basis to an institution of higher 
                education, a public or private nonprofit 
                organization or agency, or a consortium of such 
                institutions, organizations, or agencies to 
                establish a national research center or 
                centers--
                            ``(i) to carry out research for the 
                        purpose of developing, improving, and 
                        identifying the most successful methods 
                        for successfully addressing the 
                        education, employment, and training 
                        needs of participants in vocational and 
                        technical education programs, including 
                        research and evaluation in such 
                        activities as--
                                    ``(I) the integration of 
                                vocational and technical 
                                instruction, and academic, 
                                secondary and postsecondary 
                                instruction;
                                    ``(II) education technology 
                                and distance learning 
                                approaches and strategies that 
                                are effective with respect to 
                                vocational and technical 
                                education;
                                    ``(III) State adjusted 
                                levels of performance and State 
                                levels of performance that 
                                serve to improve vocational and 
                                technical education programs 
                                and student achievement; and
                                    ``(IV) academic knowledge 
                                and vocational and technical 
                                skills required for employment 
                                or participation in 
                                postsecondary education;
                            ``(ii) to carry out research to 
                        increase the effectiveness and improve 
                        the implementation of vocational and 
                        technical education programs, including 
                        conducting research and development, 
                        and studies, providing longitudinal 
                        information or formative evaluation 
                        with respect to vocational and 
                        technical education programs and 
                        student achievement;
                            ``(iii) to carry out research that 
                        can be used to improve teacher training 
                        and learning in the vocational and 
                        technical education classroom, 
                        including--
                                    ``(I) effective inservice 
                                and preservice teacher 
                                education that assists 
                                vocational and technical 
                                education systems; and
                                    ``(II) dissemination and 
                                training activities related to 
                                the applied research and 
                                demonstration activities 
                                described in this subsection, 
                                which may also include serving 
                                as a repository for information 
                                on vocational and technical 
                                skills, State academic 
                                standards, and related 
                                materials; and
                            ``(iv) to carry out such other 
                        research as the Secretary determines 
                        appropriate to assist State and local 
                        recipients of funds under this Act.
                    ``(B) Report.--The center or centers 
                conducting the activities described in 
                subparagraph (A) shall annually prepare a 
                report of key research findings of such center 
                or centers and shall submit copies of the 
                report to the Secretary, the Committee on 
                Education and the Workforce of the House of 
                Representatives, the Committee on Labor and 
                Human Resources of the Senate, the Library of 
                Congress, and each eligible agency.
                    ``(C) Dissemination.--The center or centers 
                shall conduct dissemination and training 
                activities based upon the research described in 
                subparagraph (A).
            ``(6) Demonstrations and dissemination.--
                    ``(A) Demonstration program.--The Secretary 
                is authorized to carry out demonstration 
                vocational and technical education programs, to 
                replicate model vocational and technical 
                education programs, to disseminate best 
                practices information, and to provide technical 
                assistance upon request of a State, for the 
                purposes of developing, improving, and 
                identifying the most successful methods and 
                techniques for providing vocational and 
                technical education programs assisted under 
                this Act.
                    ``(B) Demonstration partnership.--
                            ``(i) In general.--The Secretary 
                        shall carry out a demonstration 
                        partnership project involving a 4-year, 
                        accredited postsecondary institution, 
                        in cooperation with local public 
                        education organizations, volunteer 
                        groups, and private sector business 
                        participants to provide program 
                        support, and facilities for education, 
                        training, tutoring, counseling, 
                        employment preparation, specific skills 
                        training in emerging and established 
                        professions, and for retraining of 
                        military medical personnel, individuals 
                        displaced by corporate or military 
                        restructuring, migrant workers, as well 
                        as other individuals who otherwise do 
                        not have access to such services, 
                        through multisite, multistate distance 
                        learning technologies.
                            ``(ii) Program.--Such program may 
                        be carried out directly or through 
                        grants, contracts, cooperative 
                        agreements, or through the national 
                        center or centers established under 
                        paragraph (5).
            ``(7) Definition.--In this section, the term 
        `institution of higher education' has the meaning given 
        the term in section 101 of the Higher Education Act of 
        1965.
            ``(8) Authorization of appropriations.--There are 
        authorized to be appropriated to carry out this section 
        such sums as may be necessary for fiscal year 1999 and 
        each of the 4 succeeding fiscal years.

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

    ``(a) Outlying Areas.--From funds reserved pursuant to 
section 111(a)(1)(A), the Secretary shall--
            ``(1) make a grant in the amount of $500,000 to 
        Guam; and
            ``(2) make a grant in the amount of $190,000 to 
        each of American Samoa and the Commonwealth of the 
        Northern Mariana Islands.
    ``(b) Remainder.--Subject to the provisions of subsection 
(a), the Secretary shall make a grant of the remainder of funds 
reserved pursuant to section 111(a)(1)(A) to the Pacific Region 
Educational Laboratory in Honolulu, Hawaii, to make grants for 
vocational and technical education and training in Guam, 
American Samoa, the Commonwealth of the Northern Mariana 
Islands, the Republic of the Marshall Islands, the Federated 
States of Micronesia, and the Republic of Palau, for the 
purpose of providing direct vocational and technical 
educational services, including--
            ``(1) teacher and counselor training and 
        retraining;
            ``(2) curriculum development; and
            ``(3) the improvement of vocational and technical 
        education and training programs in secondary schools 
        and institutions of higher education, or improving 
        cooperative education programs involving both secondary 
        schools and institutions of higher education.
    ``(c) Limitation.--The Pacific Region Educational 
Laboratory may use not more than 5 percent of the funds 
received under subsection (b) for administrative costs.
    ``(d) Restriction.--Notwithstanding any other provision of 
law, the Republic of the Marshall Islands, the Federated States 
of Micronesia, and the Republic of Palau shall not receive any 
funds under this title for any fiscal year that begins after 
September 30, 2001.

``SEC. 116. NATIVE AMERICAN PROGRAM.

    ``(a) Definitions.--In this section:
            ``(1) Alaska native.--The term `Alaska Native' 
        means a Native as such term is defined in section 3 of 
        the Alaska Native Claims Settlement Act (43 U.S.C. 
        1602(b)).
            ``(2) Bureau funded school.--The term `Bureau 
        funded school' has the meaning given the term in 
        section 1146 of the Education Amendments of 1978 (25 
        U.S.C. 2026).
            ``(3) Indian, indian tribe, and tribal 
        organization.--The terms `Indian', `Indian tribe', and 
        `tribal organization' have the meanings given the terms 
        in section 4 of the Indian Self-Determination and 
        Education Assistance Act (25 U.S.C. 450b).
            ``(4) Native hawaiian.--The term `Native Hawaiian' 
        means any individual any of whose ancestors were 
        natives, prior to 1778, of the area which now comprises 
        the State of Hawaii.
            ``(5) Native hawaiian organization.--The term 
        `Native Hawaiian organization' has the meaning given 
        the term in section 9212 of the Native Hawaiian 
        Education Act (20 U.S.C. 7912).
    ``(b) Program Authorized.--
            ``(1) Authority.--From funds reserved under section 
        111(a)(1)(B)(i), the Secretary shall make grants to and 
        enter into contracts with Indian tribes, tribal 
        organizations, and Alaska Native entities to carry out 
        the authorized programs described in subsection (d), 
        except that such grants or contracts shall not be 
        awarded to secondary school programs in Bureau funded 
        schools.
            ``(2) Indian tribes and tribal organizations.--The 
        grants or contracts described in this section (other 
        than in subsection (i)) that are awarded to any Indian 
        tribe or tribal organization shall be subject to the 
        terms and conditions of section 102 of the Indian Self-
        Determination Act (25 U.S.C. 450f) and shall be 
        conducted in accordance with the provisions of sections 
        4, 5, and 6 of the Act of April 16, 1934, which are 
        relevant to the programs administered under this 
        subsection.
            ``(3) Special authority relating to secondary 
        schools operated or supported by the bureau of indian 
        affairs.--An Indian tribe, a tribal organization, or an 
        Alaska Native entity, that receives funds through a 
        grant made or contract entered into under paragraph (1) 
        may use the funds to provide assistance to a secondary 
        school operated or supported by the Bureau of Indian 
        Affairs to enable such school to carry out vocational 
        and technical education programs.
            ``(4) Matching.--If sufficient funding is 
        available, the Bureau of Indian Affairs shall expend an 
        amount equal to the amount made available under this 
        subsection, relating to programs for Indians, to pay a 
        part of the costs of programs funded under this 
        subsection. During each fiscal year the Bureau of 
        Indian Affairs shall expend not less than the amount 
        expended during the prior fiscal year on vocational and 
        technical education programs, services, and technical 
        activities administered either directly by, or under 
        contract with, the Bureau of Indian Affairs, except 
        that in no year shall funding for such programs, 
        services, and activities be provided from accounts and 
        programs that support other Indian education programs. 
        The Secretary and the Assistant Secretary of the 
        Interior for Indian Affairs shall prepare jointly a 
        plan for the expenditure of funds made available and 
        for the evaluation of programs assisted under this 
        subsection. Upon the completion of a joint plan for the 
        expenditure of the funds and the evaluation of the 
        programs, the Secretary shall assume responsibility for 
        the administration of the program, with the assistance 
        and consultation of the Bureau of Indian Affairs.
            ``(5) Regulations.--If the Secretary promulgates 
        any regulations applicable to subsection (b)(2), the 
        Secretary shall--
                    ``(A) confer with, and allow for active 
                participation by, representatives of Indian 
                tribes, tribal organizations, and individual 
                tribal members; and
                    ``(B) promulgate the regulations under 
                subchapter III of chapter 5 of title 5, 
UnitedStates Code, commonly known as the ``Negotiated Rulemaking Act of 
1990''.
            ``(6) Application.--Any Indian tribe, tribal 
        organization, or Bureau funded school eligible to 
        receive assistance under subsection (b) may apply 
        individually or as part of a consortium with another 
        such Indian tribe, tribal organization, or Bureau 
        funded school.
    ``(c) Authorized Activities.--
            ``(1) Authorized programs.--Funds made available 
        under this section shall be used to carry out 
        vocational and technical education programs consistent 
        with the purpose of this Act.
            ``(2) Stipends.--
                    ``(A) In general.--Funds received pursuant 
                to grants or contracts awarded under subsection 
                (b) may be used to provide stipends to students 
                who are enrolled in vocational and technical 
                education programs and who have acute economic 
                needs which cannot be met through work-study 
                programs.
                    ``(B) Amount.--Stipends described in 
                subparagraph (A) shall not exceed reasonable 
                amounts as prescribed by the Secretary.
    ``(d) Grant or Contract Application.--In order to receive a 
grant or contract under this section an organization, tribe, or 
entity described in subsection (b) shall submit an application 
to the Secretary that shall include an assurance that such 
organization, tribe, or entity shall comply with the 
requirements of this section.
    ``(e) Restrictions and Special Considerations.--The 
Secretary may not place upon grants awarded or contracts 
entered into under subsection (b) any restrictions relating to 
programs other than restrictions that apply to grants made to 
or contracts entered into with States pursuant to allotments 
under section 111(a). The Secretary, in awarding grants and 
entering into contracts under this paragraph, shall ensure that 
the grants and contracts will improve vocational and technical 
education programs, and shall give special consideration to--
            ``(1) programs that involve, coordinate with, or 
        encourage tribal economic development plans; and
            ``(2) applications from tribally controlled 
        colleges or universities that--
                    ``(A) are accredited or are candidates for 
                accreditation by a nationally recognized 
                accreditation organization as an institution of 
                postsecondary vocational and technical 
                education; or
                    ``(B) operate vocational and technical 
                education programs that are accredited or are 
                candidates for accreditation by a nationally 
                recognized accreditation organization and issue 
                certificates for completion of vocational and 
                technical education programs.
    ``(f) Consolidation of Funds.--Each organization, tribe, or 
entity receiving assistance under this section may consolidate 
such assistance with assistance received from related programs 
in accordance with the provisions of the Indian Employment, 
Training and Related Services Demonstration Act of 1992 (25 
U.S.C 3401 et seq.).
    ``(g) Nonduplicative and Nonexclusive Services.--Nothing in 
this section shall be construed--
            ``(1) to limit the eligibility of any organization, 
        tribe, or entity described in subsection (b) to 
        participate in any activity offered by an eligible 
        agency or eligible recipient under this title; or
            ``(2) to preclude or discourage any agreement, 
        between any organization, tribe, or entity described in 
        subsection (b) and any eligible agency or eligible 
        recipient, to facilitate the provision of services by 
        such eligible agency or eligible recipient to the 
        population served by such eligible agency or eligible 
        recipient.
    ``(h) Native Hawaiian Programs.--From the funds reserved 
pursuant to section 111(a)(1)(B)(ii), the Secretary shall award 
grants to or enter into contracts with organizations primarily 
serving and representing Native Hawaiians which are recognized 
by the Governor of the State of Hawaii to plan, conduct, and 
administer programs, or portions thereof, which are authorized 
by and consistent with the provisions of this section for the 
benefit of Native Hawaiians.

``SEC. 117. TRIBALLY CONTROLLED POSTSECONDARY VOCATIONAL AND TECHNICAL 
                    INSTITUTIONS.

    ``(a) Grants Authorized.--The Secretary shall, subject to 
the availability of appropriations, make grants pursuant to 
this section to tribally controlled postsecondary vocational 
and technical institutions to provide basic support for the 
education and training of Indian students.
    ``(b) Use of Grants.--Amounts made available pursuant to 
this section shall be used for vocational and technical 
education programs.
    ``(c) Amount of Grants.--
            ``(1) In general.--If the sums appropriated for any 
        fiscal year for grants under this section are not 
        sufficient to pay in full the total amount which 
        approved applicants are eligible to receive under this 
        section for such fiscal year, the Secretary shall first 
        allocate to each such applicant who received funds 
        under this part for the preceding fiscal year an amount 
        equal to 100 percent of the product of the per capita 
        payment for the preceding fiscal year and such 
        applicant's Indian student count for the current 
        program year, plus an amount equal to the actual cost 
        of any increase to the per capita figure resulting from 
        inflationary increases to necessary costs beyond the 
        institution's control.
            ``(2) Per capita determination.--For the purposes 
        of paragraph (1), the per capita payment for any fiscal 
        year shall be determined by dividing the amount 
        available for grants to tribally controlled 
        postsecondary vocational and technical institutions 
        under this section for such program year by the sum of 
        the Indian student counts of such institutions for such 
        program year. The Secretary shall, on the basis of the 
        most accurate data available from the institutions, 
        compute the Indian student count for any fiscal year 
        for which such count was not used for the purpose of 
        making allocations under this section.
    ``(d) Applications.--Any tribally controlled postsecondary 
vocational and technical institution that desires to receive a 
grant under this section shall submit an application to the 
Secretary in such manner and form as the Secretary may require.
    ``(e) Expenses.--
            ``(1) In general.--The Secretary shall, subject to 
        the availability of appropriations, provide for each 
        program year to each tribally controlled postsecondary 
        vocational and technical institution having an 
        application approved by the Secretary, an amount 
        necessary to pay expenses associated with--
                    ``(A) the maintenance and operation of the 
                program, including development costs, costs of 
                basic and special instruction (including 
                special programs for individuals with 
                disabilities and academic instruction), 
                materials, student costs, administrative 
                expenses, boarding costs, transportation, 
                student services, daycare and family support 
                programs for students and their families 
                (including contributions to the costs of 
                education for dependents), and student 
                stipends;
                    ``(B) capital expenditures, including 
                operations and maintenance, and minor 
                improvements and repair, and physical plant 
                maintenance costs, for the conduct of programs 
                funded under this section; and
                    ``(C) costs associated with repair, upkeep, 
                replacement, and upgrading of the instructional 
                equipment.
            ``(2) Accounting.--Each institution receiving a 
        grant under this section shall provide annually to the 
        Secretary an accurate and detailed accounting of the 
        institution's operating and maintenance expenses and 
        such other information concerning costs as the 
        Secretary may reasonably require.
    ``(f) Other Programs.--
            ``(1) In general.--Except as specifically provided 
        in this Act, eligibility for assistance under this 
        section shall not preclude any tribally controlled 
        postsecondary vocational and technical institution from 
        receiving Federal financial assistance under any 
        program authorized under the Higher Education Act of 
        1965, or any other applicable program for the benefit 
        of institutions of higher education or vocational and 
        technical education.
            ``(2) Prohibition on alteration of grant amount.--
        The amount of any grant for which tribally controlled 
        postsecondary vocational and technical institutions are 
        eligible under this section shall not be altered 
        because of funds allocated to any such institution from 
        funds appropriated under the Act of November 2, 1921 
        (commonly known as the `Snyder Act') (42 Stat. 208, 
        chapter 115; 25 U.S.C. 13).
            ``(3) Prohibition on contract denial.--No tribally 
        controlled postsecondary vocational and technical 
        institution for which an Indian tribe has designated a 
        portion of the funds appropriated for the tribe from 
        funds appropriated under the Act of November 2, 1921, 
        may be denied a contract for such portion under the 
        Indian Self-Determination and Education Assistance Act 
        (except as provided in that Act), or denied appropriate 
        contract support to administer such portion of the 
        appropriated funds.
    ``(g) Needs Estimate and Report on Facilities and 
Facilities Improvement.--
            ``(1) Needs estimate.--The Secretary shall, based 
        on the most accurate data available from the 
        institutions and Indian tribes whose Indian students 
        are served under this section, and in consideration of 
        employment needs, economic development needs, 
        population training needs, and facilities needs, 
        prepare an actual budget needs estimate for each 
        institution eligible under this section for each 
        subsequent program year, and submit such budget needs 
        estimate to Congress in such a timely manner as will 
        enable the appropriate committees of Congress 
toconsider such needs data for purposes of the uninterrupted flow of 
adequate appropriations to such institutions. Such data shall take into 
account the purposes and requirements of part A of title IV of the 
Social Security Act.
            ``(2) Study of training and housing needs.--
                    ``(A) In general.--The Secretary shall 
                conduct a detailed study of the training, 
                housing, and immediate facilities needs of each 
                institution eligible under this section. The 
                study shall include an examination of--
                            ``(i) training equipment needs;
                            ``(ii) housing needs of families 
                        whose heads of households are students 
                        and whose dependents have no alternate 
                        source of support while such heads of 
                        households are students; and
                            ``(iii) immediate facilities needs.
                    ``(B) Report.--The Secretary shall report 
                to Congress not later than July 1, 2000, on the 
                results of the study required by subparagraph 
                (A).
                    ``(C) Contents.--The report required by 
                subparagraph (B) shall include the number, 
                type, and cost of meeting the needs described 
                in subparagraph (A), and rank each institution 
                by relative need.
                    ``(D) Priority.--In conducting the study 
                required by subparagraph (A), the Secretary 
                shall give priority to institutions that are 
                receiving assistance under this section.
            ``(3) Long-term study of facilities.--
                    ``(A) In general.--The Secretary shall 
                provide for the conduct of a long-term study of 
                the facilities of each institution eligible for 
                assistance under this section.
                    ``(B) Contents.--The study required by 
                subparagraph (A) shall include a 5-year 
                projection of training facilities, equipment, 
                and housing needs and shall consider such 
                factors as projected service population, 
                employment, and economic development 
                forecasting, based on the most current and 
                accurate data available from the institutions 
                and Indian tribes affected.
                    ``(C) Submission.--The Secretary shall 
                submit to Congress a detailed report on the 
                results of such study not later than the end of 
                the 18-month period beginning on the date of 
                enactment of this Act.
    ``(h) Definitions.--In this section:
            ``(1) Indian.--The terms `Indian' and `Indian 
        tribe' have the meanings given the terms in section 2 
        of the Tribally Controlled College or University 
        Assistance Act of 1978.
            ``(2) Indian student count.--The term `Indian 
        student count' means a number equal to the total number 
        of Indian students enrolled in each tribally controlled 
        postsecondary vocational and technical institution, 
        determined as follows:
                    ``(A) Registrations.--The registrations of 
                Indian students as in effect on October 1 of 
                each year.
                    ``(B) Summer term.--Credits or clock hours 
                toward a certificate earned in classes offered 
                during a summer term shall be counted toward 
                the computation of the Indian student count in 
                the succeeding fall term.
                    ``(C) Admission criteria.--Credits or clock 
                hours toward a certificate earned in classes 
                during a summer term shall be counted toward 
                the computation of the Indian student count if 
                the institution at which the student is in 
                attendance has established criteria for the 
                admission of such student on the basis of the 
                student's ability to benefit from the education 
                or training offered. The institution shall be 
                presumed to have established such criteria if 
                the admission procedures for such studies 
                include counseling or testing that measures the 
                student's aptitude to successfully complete the 
                course in which the student has enrolled. No 
                credit earned by such student for purposes of 
                obtaining a secondary school degree or its 
                recognized equivalent shall be counted toward 
                the computation of the Indian student count.
                    ``(D) Determination of hours.--Indian 
                students earning credits in any continuing 
                education program of a tribally controlled 
                postsecondary vocational and technical 
                institution shall be included in determining 
                the sum of all credit or clock hours.
                    ``(E) Continuing education.--Credits or 
                clock hours earned in a continuing education 
                program shall be converted to the basis that is 
                in accordance with the institution's system for 
                providing credit for participation in such 
                programs.
    ``(i) Authorization of Appropriations.--There are 
authorized to be appropriated to carry out this 
section$4,000,000 for fiscal year 1999 and each of the 4 succeeding 
fiscal years.

``SEC. 118. OCCUPATIONAL AND EMPLOYMENT INFORMATION.

    ``(a) National Activities.--From funds appropriated under 
subsection (f), the Secretary, in consultation with appropriate 
Federal agencies, is authorized--
            ``(1) to provide assistance to an entity to enable 
        the entity--
                    ``(A) to provide technical assistance to 
                State entities designated under subsection (b) 
                to enable the State entities to carry out the 
                activities described in subsection (b);
                    ``(B) to disseminate information that 
                promotes the replication of high quality 
                practices described in subsection (b);
                    ``(C) to develop and disseminate products 
                and services related to the activities 
                described in subsection (b); and
            ``(2) to award grants to States that designate 
        State entities in accordance with subsection (b) to 
        enable the State entities to carry out the State level 
        activities described in subsection (b).
    ``(b) State Level Activities.--In order for a State to 
receive a grant under this section, the eligible agency and the 
Governor of the State shall jointly designate an entity in the 
State--
            ``(1) to provide support for a career guidance and 
        academic counseling program designed to promote 
        improved career and education decisionmaking by 
        individuals (especially in areas of career information 
        delivery and use);
            ``(2) to make available to students, parents, 
        teachers, administrators, and counselors, and to 
        improve accessibility with respect to, information and 
        planning resources that relate educational preparation 
        to career goals and expectations;
            ``(3) to equip teachers, administrators, and 
        counselors with the knowledge and skills needed to 
        assist students and parents with career exploration, 
        educational opportunities, and education financing.
            ``(4) to assist appropriate State entities in 
        tailoring career-related educational resources and 
        training for use by such entities;
            ``(5) to improve coordination and communication 
        among administrators and planners of programs 
        authorized by this Act and by section 15 of the Wagner-
        Peyser Act at the Federal, State, and local levels to 
        ensure nonduplication of efforts and the appropriate 
        use of shared information and data; and
            ``(6) to provide ongoing means for customers, such 
        as students and parents, to provide comments and 
        feedback on products and services and to update 
        resources, as appropriate, to better meet customer 
        requirements.
    ``(c) Nonduplication.--
            ``(1) Wagner-peyser act.--The State entity 
        designated under subsection (b) may use funds provided 
        under subsection (b) to supplement activities under 
        section 15 of the Wagner-Peyser Act to the extent such 
        activities do not duplicate activities assisted under 
        such section.
            ``(2) Public law 105-220.--None of the functions 
        and activities assisted under this section shall 
        duplicate the functions and activities carried out 
        under Public Law 105-220.
    ``(d) Funding Rule.--Of the amounts appropriated to carry 
out this section, the Federal entity designated under 
subsection (a) shall use--
            ``(1) not less than 85 percent to carry out 
        subsection (b); and
            ``(2) not more than 15 percent to carry out 
        subsection (a).
    ``(e) Report.--The Secretary, in consultation with 
appropriate Federal agencies, shall prepare and submit to the 
appropriate committees of Congress, an annual report that 
includes--
            ``(1) an identification of activities assisted 
        under this section during the prior program year;
            ``(2) a description of the specific products and 
        services assisted under this section that were 
        delivered in the prior program year; and
            ``(3) an assessment of the extent to which States 
        have effectively coordinated activities assisted under 
        this section with activities authorized under section 
        15 of the Wagner-Peyser Act.
    ``(f) Authorization of Appropriations.--There are 
authorized to be appropriated to carry out this section such 
sums as may be necessary for each of the fiscal years 1999 
through 2003.

                       ``PART B--STATE PROVISIONS

``SEC. 121. STATE ADMINISTRATION.

    ``(a) Eligible Agency Responsibilities.--
            ``(1) In general.--The responsibilities of an 
        eligible agency under this title shall include--
                    ``(A) coordination of the development, 
                submission, and implementation of the State 
                plan, and the evaluation of the program, 
                services, and activities assisted under this 
                title, including
                preparation for nontraditional training and 
                employment;
                    ``(B) consultation with the Governor and 
                appropriate agencies, groups, and individuals 
                including parents, students, teachers, 
                representatives of businesses, labor 
                organizations, eligible recipients, State and 
                local officials, and local program 
                administrators, involved in the planning, 
                administration, evaluation, and coordination of 
                programs funded under this title;
                    ``(C) convening and meeting as an eligible 
                agency (consistent with State law and procedure 
                for the conduct of such meetings) at such time 
                as the eligible agency determines necessary to 
                carry out the eligible agency's 
                responsibilities under this title, but not less 
                than 4 times annually; and
                    ``(D) the adoption of such procedures as 
                the eligible agency considers necessary to--
                            ``(i) implement State level 
                        coordination with the activities 
                        undertaken by the State boards under 
                        section 111 of Public Law 105-220; and
                            ``(ii) make available to the 
                        service delivery system under section 
                        121 of Public Law 105-220 within the 
                        State a listing of all school dropout, 
                        postsecondary, and adult programs 
                        assisted under this title.
            ``(2) Exception.--Except with respect to the 
        responsibilities set forth in paragraph (1), the 
        eligible agency may delegate any of the other 
        responsibilities of the eligible agency that involve 
        the administration, operation, supervision of 
        activities assisted under this title, in whole or in 
        part, to 1 or more appropriate State agencies.

``SEC. 122. STATE PLAN.

    ``(a) State Plan.--
            ``(1) In general.--Each eligible agency desiring 
        assistance under this title for any fiscal year shall 
        prepare and submit to the Secretary a State plan for a 
        5-year period, together with such annual revisions as 
        the eligible agency determines to be necessary.
            ``(2) Revisions.--Each eligible agency--
                    ``(A) may submit such annual revisions of 
                the State plan to the Secretary as the eligible 
                agency determines to be necessary; and
                    ``(B) shall, after the second year of the 5 
                year State plan, conduct a review of activities 
                assisted under this title and submit any 
                revisions of the State plan that the eligible 
                agency determines necessary to the Secretary.
            ``(3) Hearing process.--The eligible agency shall 
        conduct public hearings in the State, after appropriate 
        and sufficient notice, for the purpose of affording all 
        segments of the public and interested organizations and 
        groups (including employers, labor organizations, and 
        parents), an opportunity to present their views and 
        make recommendations regarding the State plan. A 
        summary of such recommendations and the eligible 
        agency's response to such recommendations shall be 
        included in the State plan.
    ``(b) Plan Development.--
            ``(1) In general.--The eligible agency shall 
        develop the State plan in consultation with teachers, 
        eligible recipients, parents, students, interested 
        community members, representatives of special 
        populations, representatives of business and industry, 
        and representatives of labor organizations in the 
        State, and shall consult the Governor of the State with 
        respect to such development.
            ``(2) Activities and procedures.--The eligible 
        agency shall develop effective activities and 
        procedures, including access to information needed 
touse such procedures, to allow the individuals described in paragraph 
(1) to participate in State and local decisions that relate to 
development of the State plan.
    ``(c) Plan Contents.--The State plan shall include 
information that--
            ``(1) describes the vocational and technical 
        education activities to be assisted that are designed 
        to meet or exceed the State adjusted levels of 
        performance, including a description of--
                    ``(A) the secondary and postsecondary 
                vocational and technical education programs to 
                be carried out, including programs that will be 
                carried out by the eligible agency to develop, 
                improve, and expand access to quality, state-
                of-the-art technology in vocational and 
                technical education programs;
                    ``(B) the criteria that will be used by the 
                eligible agency in approving applications by 
                eligible recipients for funds under this title;
                    ``(C) how such programs will prepare 
                vocational and technical education students for 
                opportunities in postsecondary education or 
                entry into high skill, high wage jobs in 
                current and emerging occupations; and
                    ``(D) how funds will be used to improve or 
                develop new vocational and technical education 
                courses;
            ``(2) describes how comprehensive professional 
        development (including initial teacher preparation) for 
        vocational and technical, academic, guidance, and 
        administrative personnel will be provided;
            ``(3) describes how the eligible agency will 
        actively involve parents, teachers, local businesses 
        (including small- and medium-sized businesses), and 
        labor organizations in the planning, development, 
        implementation, and evaluation of such vocational and 
        technical education programs;
            ``(4) describes how funds received by the eligible 
        agency through the allotment made under section 111 
        will be allocated--
                    ``(A) among secondary school vocational and 
                technical education, or postsecondary and adult 
                vocational and technical education, or both, 
                including the rationale for such allocation; 
                and
                    ``(B) among any consortia that will be 
                formed among secondary schools and eligible 
                institutions, and how funds will be 
allocatedamong the members of the consortia, including the rationale 
for such allocation;
            ``(5) describes how the eligible agency will--
                    ``(A) improve the academic and technical 
                skills of students participating in vocational 
                and technical education programs, including 
                strengthening the academic, and vocational and 
                technical, components of vocational and 
                technical education programs through the 
                integration of academics with vocational and 
                technical education to ensure learning in the 
                core academic, and vocational and technical, 
                subjects, and provide students with strong 
                experience in, and understanding of, all 
                aspects of an industry; and
                    ``(B) ensure that students who participate 
                in such vocational and technical education 
                programs are taught to the same challenging 
                academic proficiencies as are taught to all 
                other students;
            ``(6) describes how the eligible agency will 
        annually evaluate the effectiveness of such vocational 
        and technical education programs, and describe, to the 
        extent practicable, how the eligible agency is 
        coordinating such programs to ensure nonduplication 
        with other existing Federal programs;
            ``(7) describes the eligible agency's program 
        strategies for special populations;
            ``(8) describes how individuals who are members of 
        the special populations--
                    ``(A) will be provided with equal access to 
                activities assisted under this title;
                    ``(B) will not be discriminated against on 
                the basis of their status as members of the 
                special populations; and
                    ``(C) will be provided with programs 
                designed to enable the special populations to 
                meet or exceed State adjusted levels of 
                performance, and prepare special populations 
                for further learning and for high skill, high 
                wage careers;
            ``(9) describe what steps the eligible agency shall 
        take to involve representatives of eligible recipients 
        in the development of the State adjusted levels of 
        performance;
            ``(10) provides assurances that the eligible agency 
        will comply with the requirements of this title and the 
        provisions of the State plan, including the provision 
        of a financial audit of funds receivedunder this title 
which may be included as part of an audit of other Federal or State 
programs;
            ``(11) provides assurances that none of the funds 
        expended under this title will be used to acquire 
        equipment (including computer software) in any instance 
        in which such acquisition results in a direct financial 
        benefit to any organization representing the interests 
        of the purchasing entity, the employees of the 
        purchasing entity, or any affiliate of such an 
        organization;
            ``(12) describes how the eligible agency will 
        report data relating to students participating in 
        vocational and technical education in order to 
        adequately measure the progress of the students, 
        including special populations;
            ``(13) describes how the eligible agency will 
        adequately address the needs of students in alternative 
        education programs, if appropriate;
            ``(14) describes how the eligible agency will 
        provide local educational agencies, area vocational and 
        technical education schools, and eligible institutions 
        in the State with technical assistance;
            ``(15) describes how vocational and technical 
        education relates to State and regional occupational 
        opportunities;
            ``(16) describes the methods proposed for the joint 
        planning and coordination of programs carried out under 
        this title with other Federal education programs;
            ``(17) describes how funds will be used to promote 
        preparation for nontraditional training and employment;
            ``(18) describes how funds will be used to serve 
        individuals in State correctional institutions;
            ``(19) describes how funds will be used effectively 
        to link secondary and postsecondary education;
            ``(20) describes how the eligible agency will 
        ensure that the data reported to the eligible agency 
        from local educational agencies and eligible 
        institutions under this title and the data the eligible 
        agency reports to the Secretary are complete, accurate, 
        and reliable; and
            ``(21) contains the description and information 
        specified in sections 112(b)(8) and 121(c) of Public 
        Law 105-220 concerning the provision of services only 
        for postsecondary students and school dropouts.
    ``(d) Plan Option.--The eligible agency may fulfill the 
requirements of subsection (a) by submitting a plan under 
section 501 of Public Law 105-220.
    ``(e) Plan Approval.--
            ``(1) In general.--The Secretary shall approve a 
        State plan, or a revision to an approved State plan, 
        unless the Secretary determines that--
                    ``(A) the State plan, or revision, 
                respectively, does not meet the requirements of 
                this section; or
                    ``(B) the State's levels of performance on 
                the core indicators of performance consistent 
                with section 113 are not sufficiently rigorous 
                to meet the purpose of this Act.
            ``(2) Disapproval.--The Secretary shall not finally 
        disapprove a State plan, except after giving the 
        eligible agency notice and an opportunity for a 
        hearing.
            ``(3) Consultation.--The eligible agency shall 
        develop the portion of each State plan relating to the 
        amount and uses of any funds proposed to be reserved 
        for adult vocational and technical education, 
        postsecondary vocational and technical education, tech-
        prep education, and secondary vocational and technical 
        education after consultation with the State agency 
        responsible for supervision of community colleges, 
        technical institutes, or other 2-year postsecondary 
        institutions primarily engaged in providing 
        postsecondary vocational and technical education, and 
        the State agency responsible for secondary education. 
        If a State agency finds that a portion of the final 
        State plan is objectionable, the State agency shall 
        file such objections with the eligible agency. The 
        eligible agency shall respond to any objections of the 
        State agency in the State plan submitted to the 
        Secretary.
            ``(4) Timeframe.--A State plan shall be deemed 
        approved by the Secretary if the Secretary has not 
        responded to the eligible agency regarding the State 
        plan within 90 days of the date the Secretary receives 
        the State plan.
    ``(f) Transition.--This section shall be subject to section 
4 for fiscal year 1999 only, with respect to activities under 
this section.

``SEC. 123. IMPROVEMENT PLANS.

    ``(a) State Program Improvement Plan.--If a State fails to 
meet the State adjusted levels of performance described in the 
report submitted under section 113(c), the eligible agency 
shall develop and implement a program improvement plan in 
consultation with appropriate agencies, individuals, and 
organizations for the first program year succeeding the program 
year in which the eligible agency failed to meet the State 
adjusted levels ofperformance, in order to avoid a sanction 
under subsection (d).
    ``(b) Local Evaluation.--Each eligible agency shall 
evaluate annually, using the State adjusted levels of 
performance, the vocational and technical education activities 
of each eligible recipient receiving funds under this title.
    ``(c) Local Improvement Plan.--
            ``(1) In general.--If, after reviewing the 
        evaluation, the eligible agency determines that an 
        eligible recipient is not making substantial progress 
        in achieving the State adjusted levels of performance, 
        the eligible agency shall--
                    ``(A) conduct an assessment of the 
                educational needs that the eligible recipient 
                shall address to overcome local performance 
                deficiencies;
                    ``(B) enter into an improvement plan based 
                on the results of the assessment, which plan 
                shall include instructional and other 
                programmatic innovations of demonstrated 
                effectiveness, and where necessary, strategies 
                for appropriate staffing and staff development; 
                and
                    ``(C) conduct regular evaluations of the 
                progress being made toward reaching the State 
                adjusted levels of performance.
            ``(2) Consultation.--The eligible agency shall 
        conduct the activities described in paragraph (1) in 
        consultation with teachers, parents, other school 
        staff, appropriate agencies, and other appropriate 
        individuals and organizations.
    ``(d) Sanctions.--
            ``(1) Technical assistance.--If the Secretary 
        determines that an eligible agency is not properly 
        implementing the eligible agency's responsibilities 
        under section 122, or is not making substantial 
        progress in meeting the purpose of this Act, based on 
        the State adjusted levels of performance, the Secretary 
        shall work with the eligible agency to implement 
        improvement activities consistent with the requirements 
        of this Act.
            ``(2) Failure.--If an eligible agency fails to meet 
        the State adjusted levels of performance, has not 
        implemented an improvement plan as described in 
        paragraph (1), has shown no improvement within 1 year 
        after implementing an improvement plan as described in 
        paragraph (1), or has failed to meet the State adjusted 
        levels of performance for 2 or more consecutive years, 
        the Secretary may, after notice and opportunity for a 
        hearing, withhold from the eligible agency all, or a 
        portion of, the eligible agency's allotment under this 
        title. The Secretary may waive the sanction under this 
        paragraph due to exceptional or uncontrollable 
        circumstances such as a natural disaster or a 
        precipitous and unforeseen decline in the financial 
        resources of the State.
            ``(3) Funds resulting from reduced allotments.--
                    ``(A) In general.--The Secretary shall use 
                funds withheld under paragraph (2), for a State 
                served by an eligible agency, to provide 
                (through alternative arrangements) services and 
                activities within the State to meet the purpose 
                of this Act.
                    ``(B) Redistribution.--If the Secretary 
                cannot satisfactorily use funds withheld under 
                paragraph (2), then the amount of funds 
                retained by the Secretary as a result of a 
                reduction in an allotment made under paragraph 
                (2) shall be redistributed to other eligible 
                agencies in accordance with section 111.

``SEC. 124. STATE LEADERSHIP ACTIVITIES.

    ``(a) General Authority.--From amounts reserved under 
section 112(a)(2), each eligible agency shall conduct State 
leadership activities.
    ``(b) Required Uses of Funds.--The State leadership 
activities described in subsection (a) shall include--
            ``(1) an assessment of the vocational and technical 
        education programs carried out with funds under this 
        title that includes an assessment of how the needs of 
        special populations are being met and how such programs 
        are designed to enable special populations to meet 
        State adjusted levels of performance and prepare the 
        special populations for further learning or for high 
        skill, high wage careers;
            ``(2) developing, improving, or expanding the use 
        of technology in vocational and technical education 
        that may include--
                    ``(A) training of vocational and technical 
                education personnel to use state-of-the-art 
                technology, that may include distance learning;
                    ``(B) providing vocational and technical 
                education students with the academic, and 
                vocational and technical, skills that lead to 
                entry into the high technology and 
                telecommunications field; or
                    ``(C) encouraging schools to work with high 
                technology industries to offer voluntary 
                internships and mentoring programs;
            ``(3) professional development programs, including 
        providing comprehensive professional development 
        (including initial teacher preparation) for vocational 
        and technical, academic, guidance, and administrative 
        personnel, that--
                    ``(A) will provide inservice and preservice 
                training in state-of-the-art vocational and 
                technical education programs and techniques, 
                effective teaching skills based on research, 
                and effective practices to improve parental and 
                community involvement; and
                    ``(B) will help teachers and personnel to 
                assist students in meeting the State adjusted 
                levels of performance established under section 
                113;
                    ``(C) will support education programs for 
                teachers of vocational and technical education 
                in public schools and other public school 
                personnel who are involved in the direct 
                delivery of educational services to vocational 
                and technical education students to ensure that 
                such teachersstay current with the needs, 
expectations, and methods of industry; and
                    ``(D) is integrated with the professional 
                development activities that the State carries 
                out under title II of the Elementary and 
                Secondary Education Act of 1965 (20 U.S.C. 6001 
                et seq.) and title II of the Higher Education 
                Act of 1965;
            ``(4) support for vocational and technical 
        education programs that improve the academic, and 
        vocational and technical, skills of students 
        participating in vocational and technical education 
        programs by strengthening the academic, and vocational 
        and technical, components of such vocational and 
        technical education programs through the integration of 
        academics with vocational and technical education to 
        ensure learning in the core academic, and vocational 
        and technical, subjects;
            ``(5) providing preparation for nontraditional 
        training and employment;
            ``(6) supporting partnerships among local 
        educational agencies, institutions of higher education, 
        adult education providers, and, as appropriate, other 
        entities, such as employers, labor organizations, 
        parents, and local partnerships, to enable students to 
        achieve State academic standards, and vocational and 
        technical skills;
            ``(7) serving individuals in State institutions, 
        such as State correctional institutions and 
        institutions that serve individuals with disabilities; 
        and
            ``(8) support for programs for special populations 
        that lead to high skill, high wage careers.
    ``(c) Permissible Uses of Funds.--The leadership activities 
described in subsection (a) may include--
            ``(1) technical assistance for eligible recipients;
            ``(2) improvement of career guidance and academic 
        counseling programs that assist students in making 
        informed academic, and vocational and technical 
        education, decisions;
            ``(3) establishment of agreements between secondary 
        and postsecondary vocational and technical education 
        programs in order to provide postsecondary education 
        and training opportunities for students participating 
        in such vocational and technical education programs, 
        such as tech-prep programs;
            ``(4) support for cooperative education;
            ``(5) support for vocational and technical student 
        organizations, especially with respect to efforts to 
        increase the participation of students who are members 
        of special populations;
            ``(6) support for public charter schools operating 
        secondary vocational and technical education programs;
            ``(7) support for vocational and technical 
        education programs that offer experience in, and 
        understanding of, all aspects of an industry for which 
        students are preparing to enter;
            ``(8) support for family and consumer sciences 
        programs;
            ``(9) support for education and business 
        partnerships;
            ``(10) support to improve or develop new vocational 
        and technical education courses;
            ``(11) providing vocational and technical education 
        programs for adults and school dropouts to complete 
        their secondary school education; and
            ``(12) providing assistance to students, who have 
        participated in services and activities under this 
        title, in finding an appropriate job and continuing 
        their education.
    ``(d) Restriction on Uses of Funds.--An eligible agency 
that receives funds under section 112(a)(2) may not use any of 
such funds for administrative costs.

                       ``PART C--LOCAL PROVISIONS

``SEC. 131. DISTRIBUTION OF FUNDS TO SECONDARY SCHOOL PROGRAMS.

    ``(a) Distribution for Fiscal Year 1999.--Except as 
provided in section 133 and as otherwise provided in this 
section, each eligible agency shall distribute the portion of 
the funds made available under section 112(a)(1) to carry out 
this section for fiscal year 1999 to local educational agencies 
within the State as follows:
            ``(1) Seventy percent.--From 70 percent of such 
        portion, each local educational agency shall be 
        allocated an amount that bears the same relationship to 
        such 70 percent as the amount such local educational 
        agency was allocated under section 1124 of the 
        Elementary and Secondary Education Act of 1965 (20 
        U.S.C. 6333) for the preceding fiscal year bears to the 
        total amount received under such section by all local 
        educational agencies in the State for such preceding 
        fiscal year.
            ``(2) Twenty percent.--From 20 percent of such 
        portion, each local educational agency shall be 
        allocated an amount that bears the same relationship to 
        such 20 percent as the number of students with 
        disabilities who have individualized education programs 
        under section 614(d) of the Individuals with 
        Disabilities Education Act (20 U.S.C. 1414(d))served by 
such local educational agency for the preceding fiscal year bears to 
the total number of such students served by all local educational 
agencies in the State for such preceding fiscal year.
            ``(3) Ten percent.--From 10 percent of such 
        portion, each local educational agency shall be 
        allocated an amount that bears the same relationship to 
        such 10 percent as the number of students enrolled in 
        schools and adults enrolled in training programs under 
        the jurisdiction of such local educational agency for 
        the preceding fiscal year bears to the number of 
        students enrolled in schools and adults enrolled in 
        training programs under the jurisdiction of all local 
        educational agencies in the State for such preceding 
        fiscal year.
    ``(b) Special Distribution Rules for Succeeding Fiscal 
Years.--Except as provided in section 133 and as otherwise 
provided in this section, each eligible agency shall distribute 
the portion of funds made available under section 112(a)(1) to 
carry out this section for fiscal year 2000 and succeeding 
fiscal years to local educational agencies within the State as 
follows:
            ``(1) 30 percent.--30 percent shall be allocated to 
        such local educational agencies in proportion to the 
        number of individuals aged 15 through 19, inclusive, 
        who reside in the school district served by such local 
        educational agency for the preceding fiscal year 
        compared to the total number of such individuals who 
        reside in the school districts served by all local 
        educational agencies in the State for such preceding 
        fiscal year.
            ``(2) 70 percent.--70 percent shall be allocated to 
        such local educational agencies in proportion to the 
        number of individuals aged 15 through 19, inclusive, 
        who reside in the school district served by such local 
        educational agency from families with incomes below the 
        poverty line (as defined by the Office of Management 
        and Budget and revised annually in accordance with 
        section 673(2) of the Community Services Block Grant 
        Act (42 U.S.C. 9902(2))) applicable to a family of the 
        size involved for the fiscal year for which the 
        determination is made compared to the number of such 
        individuals who reside in the school districts served 
        by all the local educational agencies in the State for 
        such preceding fiscal year.
    ``(c) Waiver for More Equitable Distribution.--The 
Secretary may waive the application of subsection (b) in the 
case of any eligible agency that submits to the Secretary an 
application for such a waiver that--
            ``(1) demonstrates that a proposed alternative 
        formula more effectively targets funds on the basis of 
        poverty (as defined by the Office of Management and 
        Budget and revised annually in accordance with section 
        673(2) of the Community Services Block Grant Act (42 
        U.S.C. 9902(2)) to local educational agencies within 
        the State than the formula described in subsection (b); 
        and
            ``(2) includes a proposal for such an alternative 
        formula.
    ``(d) Minimum Allocation.--
            ``(1) In general.--Except as provided in paragraph 
        (2), a local educational agency shall not receive an 
        allocation under subsection (a) unless the amount 
        allocated to such agency under subsection (a) is 
        greater than $15,000. A local educational agency may 
        enter into a consortium with other local educational 
        agencies for purposes of meeting the minimum allocation 
        requirement of this paragraph.
            ``(2) Waiver.--The eligible agency shall waive the 
        application of paragraph (1) in any case in which the 
        local educational agency--
                    ``(A)(i) is located in a rural, sparsely 
                populated area, or
                    ``(ii) is a public charter school operating 
                secondary vocational and technical education 
                programs; and
                    ``(B) demonstrates that the local 
                educational agency is unable to enter into a 
                consortium for purposes of providing activities 
                under this part.
            ``(3) Redistribution.--Any amounts that are not 
        allocated by reason of paragraph (1) or paragraph (2) 
        shall be redistributed to local educational agencies 
        that meet the requirements of paragraph (1) or (2) in 
        accordance with the provisions of this section.
    ``(e) Limited Jurisdiction Agencies.--
            ``(1) In general.--In applying the provisions of 
        subsection (a), no eligible agency receiving assistance 
        under this title shall allocate funds to a local 
        educational agency that serves only elementary schools, 
        but shall distribute such funds to the local 
        educational agency or regional educational agency that 
        provides secondary school services to secondary school 
        students in the same attendance area.
            ``(2) Special rule.--The amount to be allocated 
        under paragraph (1) to a local educational agency that 
        has jurisdiction only over secondary schools shall be 
        determined based on the number of students that entered 
        such secondary schools in the previous year from the 
        elementary schools involved.
    ``(f) Allocations to Area Vocational and Technical 
Education Schools and Educational Service Agencies.--
            ``(1) In general.--Each eligible agency shall 
        distribute the portion of funds made available under 
        section 112(a)(1) for any fiscal year by such eligible 
        agency for secondary school vocational and technical 
        education activities under this section to the 
        appropriate area vocational and technical education 
        school or educational service agency in any case in 
        which the area vocational and technical education 
        school or educational service agency, and the local 
        educational agency concerned--
                    ``(A) have formed or will form a consortium 
                for the purpose of receiving funds under this 
                section; or
                    ``(B) have entered into or will enter into 
                a cooperative arrangement for such purpose.
            ``(2) Allocation basis.--If an area vocational and 
        technical education school or educational service 
        agency meets the requirements of paragraph (1), then 
        the amount that would otherwise be distributedto the 
local educational agency shall be allocated to the area vocational and 
technical education school, the educational service agency, and the 
local educational agency based on each school, agency or entity's 
relative share of students who are attending vocational and technical 
education programs (based, if practicable, on the average enrollment 
for the preceding 3 years;
            ``(3) Appeals procedure.--The eligible agency shall 
        establish an appeals procedure for resolution of any 
        dispute arising between a local educational agency and 
        an area vocational and technical education school or an 
        educational service agency with respect to the 
        allocation procedures described in this section, 
        including the decision of a local educational agency to 
        leave a consortium or terminate a cooperative 
        arrangement.
    ``(g) Consortium Requirements.--
            ``(1) Alliance.--Any local educational agency 
        receiving an allocation that is not sufficient to 
        conduct a program which meets the requirements of 
        section 135 is encouraged to--
                    ``(A) form a consortium or enter into a 
                cooperative agreement with an area vocational 
                and technical education school or educational 
                service agency offering programs that meet the 
                requirements of section 135; and
                    ``(B) transfer such allocation to the area 
                vocational and technical education school or 
                educational service agency; and
                    ``(C) operate programs that are of 
                sufficient size, scope, and quality to be 
                effective.
            ``(2) Funds to consortium.--Funds allocated to a 
        consortium formed to meet the requirements of this 
        paragraph shall be used only for purposes and programs 
        that are mutually beneficial to all members of the 
        consortium and can be used only for programs authorized 
        under this title. Such funds may not be reallocated to 
        individual members of the consortium for purposes or 
        programs benefiting only one member of the consortium.
    ``(h) Data.--The Secretary shall collect information from 
eligible agencies regarding the specific dollar allocations 
made available by the eligible agency for vocational and 
technical education programs under subsections (a), (b), (c), 
and (d) and how these allocations are distributed to local 
educational agencies, area vocational and technical education 
schools, and educational service agencies, within the State in 
accordance with this section.
    ``(i) Special Rule.--Each eligible agency distributing 
funds under this section shall treat a secondary school funded 
by the Bureau of Indian Affairs within the State as if such 
school were a local educational agency within the State for the 
purpose of receiving a distribution under this section.

``SEC. 132. DISTRIBUTION OF FUNDS FOR POSTSECONDARY VOCATIONAL AND 
                    TECHNICAL EDUCATION PROGRAMS.

    ``(a) Allocation.--
            ``(1) In general.--Except as provided in 
        subsections (b) and (c) and section 133, each eligible 
        agency shall distribute the portion of the funds made 
        available under section 112(a)(1) to carry out this 
        section for any fiscal year to eligible institutions or 
        consortia of eligible institutions within the State.
            ``(2) Formula.--Each eligible institution or 
        consortium of eligible institutions shall be allocated 
        an amount that bears the same relationship to the 
        portion of funds made available under section 112(a)(1) 
        to carry out this section for any fiscal year as the 
        sum of the number of individuals who are Federal Pell 
        Grant recipients and recipients of assistance from the 
        Bureau of Indian Affairs enrolled in programs meeting 
        the requirements of section 135 offered by such 
        institution or consortium in the preceding fiscal year 
        bears to the sum of the number of such recipients 
        enrolled in such programs within the State for such 
        year.
            ``(3) Consortium requirements.--
                    ``(A) In general.--In order for a 
                consortium of eligible institutions described 
                in paragraph (2) to receive assistance pursuant 
                to such paragraph, such consortium shall 
                operate joint projects that--
                            ``(i) provide services to all 
                        postsecondary institutions 
                        participating in the consortium; and
                            ``(ii) are of sufficient size, 
                        scope, and quality to be effective.
                    ``(B) Funds to consortium.--Funds allocated 
                to a consortium formed to meet the requirements 
                of this section shall be used only for purposes 
                and programs that are mutually beneficial to 
                all members of the consortium and shall be used 
                only for programs authorized under this title. 
                Such funds may not be reallocated to individual 
                members of the consortium for purposes or 
                programs benefiting only one member of the 
                consortium.
            ``(4) Waiver.--The eligible agency may waive the 
        application of paragraph (3)(A)(i) in any case in which 
        the eligible institution is located in a rural, 
        sparsely populated area.
    ``(b) Waiver for More Equitable Distribution.--The 
Secretary may waive the application of subsection (a) if an 
eligible agency submits to the Secretary an application for 
such a waiver that--
            ``(1) demonstrates that the formula described in 
        subsection (a) does not result in a distribution of 
        funds to the eligible institutions or consortia within 
        the State that have the highest numbers of economically 
        disadvantaged individuals and that an alternative 
        formula will result in such a distribution; and
            ``(2) includes a proposal for such an alternative 
        formula.
    ``(c) Minimum Grant Amount.--
            ``(1) In general.--No institution or consortium 
        shall receive an allocation under this section in an 
        amount that is less than $50,000.
            ``(2) Redistribution.--Any amounts that are not 
        distributed by reason of paragraph (1) shall be 
        redistributed to eligible institutions or consortia in 
        accordance with this section.

``SEC. 133. SPECIAL RULES FOR VOCATIONAL AND TECHNICAL EDUCATION.

    ``(a) Special Rule for Minimal Allocation.--
            ``(1) General authority.--Notwithstanding the 
        provisions of sections 131 and 132 and in order to make 
        a more equitable distribution of funds for programs 
        serving the areas of greatest economic need, for any 
        program year for which a minimal amount is made 
        available by an eligible agency for distribution under 
        section 131 or 132, such State may distribute such 
        minimal amount for such year--
                    ``(A) on a competitive basis; or
                    ``(B) through any alternative method 
                determined by the State.
            ``(2) Minimal amount.--For purposes of this 
        section, the term `minimal amount' means not more than 
        15 percent of the total amount made available for 
        distribution under section 112(a)(1).
    ``(b) Redistribution.--
            ``(1) In general.--In any academic year that an 
        eligible recipient does not expend all of the amounts 
        the eligible recipient is allocated for such year under 
        section 131 or 132, such eligible recipient shall 
        return any unexpended amounts to the eligible agency to 
        be reallocated under section 131 or 132, as 
        appropriate.
            ``(2) Redistribution of amounts returned late in an 
        academic year.--In any academic year in which amounts 
        are returned to the eligible agency under section 131 
        or 132 and the eligible agency is unable to reallocate 
        such amounts according to such sections in time for 
        such amounts to be expended in such academic year, the 
        eligible agency shall retain such amounts for 
        distribution in combination with amounts provided under 
        section 112(a)(1) for the following academic year.
    ``(c) Construction.--Nothing in section 131 or 132 shall be 
construed--
            ``(1) to prohibit a local educational agency or a 
        consortium thereof that receives assistance under 
        section 131, from working with an eligible institution 
        or consortium thereof that receives assistance under 
        section 132, to carry out secondary school vocational 
        and technical education programs in accordance with 
        this title;
            ``(2) to prohibit an eligible institution or 
        consortium thereof that receives assistance under 
        section 132, from working with a local educational 
        agency or consortium thereof that receives assistance 
        under section 131, to carry out postsecondary and adult 
        vocational and technical education programs in 
        accordance with this title; or
            ``(3) to require a charter school, that provides 
        vocational and technical education programs and is 
        considered a local educational agency under State law, 
        to jointly establish the charter school's eligibility 
        for assistance under this title unless the charter 
        school is explicitly permitted to do so under the 
        State's charter school statute.
    ``(d) Consistent Application.--For purposes of this 
section, the eligible agency shall provide funds to charter 
schools offering vocational and technical education programs in 
the same manner as the eligible agency provides those funds to 
other schools. Such vocational and technical education programs 
within a charter school shall be of sufficient size, scope, and 
quality to be effective.

``SEC. 134. LOCAL PLAN FOR VOCATIONAL AND TECHNICAL EDUCATION PROGRAMS.

    ``(a) Local Plan Required.--Any eligible recipient desiring 
financial assistance under this part shall, in accordance with 
requirements established by the eligible agency (in 
consultation with such other educational entities as the 
eligible agency determines to be appropriate) submit a local 
plan to the eligible agency. Such local plan shall cover the 
same period of time as the period of time applicable to the 
State plan submitted under section 122.
    ``(b) Contents.--The eligible agency shall determine 
requirements for local plans, except that each local plan 
shall--
            ``(1) describe how the vocational and technical 
        education programs required under section 135(b) will 
        be carried out with funds received under this title;
            ``(2) describe how the vocational and technical 
        education activities will be carried out with respect 
        to meeting State adjusted levels of performance 
        established under section 113;
            ``(3) describe how the eligible recipient will--
                    ``(A) improve the academic and technical 
                skills of students participating in vocational 
                and technical education programs by 
                strengthening the academic, and vocational and 
                technical, components of such programs through 
                the integration of academics with vocational 
                and technical education programs through a 
                coherent sequence of courses to ensure learning 
                in the core academic, and vocational and 
                technical, subjects;
                    ``(B) provide students with strong 
                experience in and understanding of all aspects 
                of an industry; and
                    ``(C) ensure that students who participate 
                in such vocational and technical education 
                programs are taught to the same challenging 
                academic proficiencies as are taught for all 
                other students;
            ``(4) describe how parents, students, teachers, 
        representatives of business and industry, labor 
        organizations, representatives of special populations, 
        and other interested individuals are involved in the 
        development, implementation, and evaluation of 
        vocational and technical education programs assisted 
        under this title, and how such individuals and entities 
        are effectively informed about, and assisted in 
        understanding, the requirements of this title;
            ``(5) provide assurances that the eligible 
        recipient will provide a vocational and technical 
        education program that is of such size, scope, and 
        quality to bring about improvement in the quality of 
        vocational and technical education programs;
            ``(6) describe the process that will be used to 
        independently evaluate and continuously improve the 
        performance of the eligible recipient;
            ``(7) describe how the eligible recipient--
                    ``(A) will review vocational and technical 
                education programs, and identify and adopt 
                strategies to overcome barriers that result in 
                lowering rates of access to or lowering success 
                in the programs, for special populations; and
                    ``(B) will provide programs that are 
                designed to enable the special populations to 
                meet the State adjusted levels of performance;
            ``(8) describe how individuals who are members of 
        the special populations will not be discriminated 
        against on the basis of their status as members of the 
        special populations;
            ``(9) describe how funds will be used to promote 
        preparation for nontraditional training and employment; 
        and
            ``(10) describe how comprehensive professional 
        development (including initial teacher preparation) for 
        vocational and technical, academic, guidance, and 
        administrative personnel will be provided.

``SEC. 135. LOCAL USES OF FUNDS.

    ``(a) General Authority.--Each eligible recipient that 
receives funds under this part shall use such funds to improve 
vocational and technical education programs.
    ``(b) Requirements for Uses of Funds.--Funds made available 
to eligible recipients under this part shall be used to support 
vocational and technical education programs that--
            ``(1) strengthen the academic, and vocational and 
        technical, skills of students participating in 
        vocational and technical education programs by 
        strengthening the academic, and vocational and 
        technical, components of such programs through the 
        integration of academics with vocational and technical 
        education programs through a coherent sequence of 
        courses to ensure learning in the core academic, and 
        vocational and technical, subjects;
            ``(2) provide students with strong experience in 
        and understanding of all aspects of an industry;
            ``(3) develop, improve, or expand the use of 
        technology in vocational and technical education, which 
        may include--
                    ``(A) training of vocational and technical 
                education personnel to use state-of-the-art 
                technology, which may include distance 
                learning;
                    ``(B) providing vocational and technical 
                education students with the academic, and 
                vocational and technical, skills that lead to 
                entry into the high technology and 
                telecommunications field; or
                    ``(C) encouraging schools to work with high 
                technology industries to offer voluntary 
                internships and mentoring programs;
            ``(4) provide professional development programs to 
        teachers, counselors, and administrators, including--
                    ``(A) inservice and preservice training in 
                state-of-the-art vocational and technical 
                education programs and techniques, in effective 
                teaching skills based on research, and in 
                effective practices to improve parental and 
                community involvement;
                    ``(B) support of education programs for 
                teachers of vocational and technical education 
                in public schools and other public school 
                personnel who are involved in the direct 
                delivery of educational services to vocational 
                and technical education students, to ensure 
                that such teachers and personnel stay current 
                with all aspects of an industry;
                    ``(C) internship programs that provide 
                business experience to teachers; and
                    ``(D) programs designed to train teachers 
                specifically in the use and application of 
                technology;
            ``(5) develop and implement evaluations of the 
        vocational and technical education programs carried out 
        with funds under this title, including an assessment of 
        how the needs of special populations are being met;
            ``(6) initiate, improve, expand, and modernize 
        quality vocational and technical education programs;
            ``(7) provide services and activities that are of 
        sufficient size, scope, and quality to be effective; 
        and
            ``(8) link secondary vocational and technical 
        education and postsecondary vocational and technical 
        education, including implementing tech-prep programs.
    ``(c) Permissive.--Funds made available to an eligible 
recipient under this title may be used--
            ``(1) to involve parents, businesses, and labor 
        organizations as appropriate, in the design, 
        implementation, and evaluation of vocational and 
        technical education programs authorized under this 
        title, including establishing effective programs and 
        procedures to enable informed and effective 
        participation in such programs;
            ``(2) to provide career guidance and academic 
        counseling for students participating in vocational and 
        technical education programs;
            ``(3) to provide work-related experience, such as 
        internships, cooperative education, school-based 
        enterprises, entrepreneurship, and job shadowing that 
        are related to vocational and technical education 
        programs;
            ``(4) to provide programs for special populations;
            ``(5) for local education and business 
        partnerships;
            ``(6) to assist vocational and technical student 
        organizations;
            ``(7) for mentoring and support services;
            ``(8) for leasing, purchasing, upgrading or 
        adapting equipment, including instructional aides;
            ``(9) for teacher preparation programs that assist 
        individuals who are interested in becoming vocational 
        and technical education instructors, including 
        individuals with experience in business and industry;
            ``(10) for improving or developing new vocational 
        and technical education courses;
            ``(11) to provide support for family and consumer 
        sciences programs;
            ``(12) to provide vocational and technical 
        education programs for adults and school dropouts to 
        complete their secondary school education;
            ``(13) to provide assistance to students who have 
        participated in services and activities under this 
        title in finding an appropriate job and continuing 
        their education;
            ``(14) to support nontraditional training and 
        employment activities; and
            ``(15) to support other vocational and technical 
        education activities that are consistent with the 
        purpose of this Act.
    ``(d) Administrative Costs.--Each eligible recipient 
receiving funds under this part shall not use more than 5 
percent of the funds for administrative costs associated with 
the administration of activities assisted under this section.

                    ``TITLE II--TECH-PREP EDUCATION

``SEC. 201. SHORT TITLE.

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

``SEC. 202. DEFINITIONS.

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

``SEC. 203. STATE ALLOTMENT AND APPLICATION.

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

``SEC. 204. TECH-PREP EDUCATION.

    ``(a) Grant Program Authorized.--
            ``(1) In general.--From amounts made available to 
        each eligible agency under section 203, the eligible 
        agency, in accordance with the provisions of this 
        title, shall award grants, on a competitive basis or on 
        the basis of a formula determined by the eligible 
        agency, for tech-prep education programs described in 
        subsection (c). The grants shall be awarded to 
        consortia between or among--
                    ``(A) a local educational agency, an 
                intermediate educational agency or area 
                vocational and technical education school 
                serving secondary school students, or a 
                secondary school funded by the Bureau of Indian 
                Affairs; and
                    ``(B)(i) a nonprofit institution of higher 
                education that offers--
                            ``(I) a 2-year associate degree 
                        program, or a 2-year certificate 
                        program, and is qualified as 
                        institutions of higher education 
                        pursuant to section 102 of the Higher 
                        Education Act of 1965, including an 
                        institution receiving assistance under 
                        the Tribally Controlled College or 
                        University Assistance Act of 1978 (25 
                        U.S.C. 1801 et seq.) and a tribally 
                        controlled postsecondary vocational and 
                        technical institution; or
                            ``(II) a 2-year apprenticeship 
                        program that follows secondary 
                        instruction,
                if such nonprofit institution of higher 
                education is not prohibited from receiving 
                assistance under part B of title IV of the 
                Higher Education Act of 1965 (20 U.S.C. 1071 et 
                seq.) pursuant to the provisions of section 
                435(a)(3) of such Act (20 U.S.C. 1083(a)); or
                    ``(ii) a proprietary institution of higher 
                education that offers a 2-year associate degree 
                program and is qualified as an institution of 
                higher education pursuant to section 102 of the 
                Higher Education Act of 1965, if such 
                proprietary institution of higher education is 
                not subject to a default management plan 
                required by the Secretary.
            ``(2) Special rule.--In addition, a consortium 
        described in paragraph (1) may include 1 or more--
                    ``(A) institutions of higher education that 
                award a baccalaureate degree; and
                    ``(B) employer or labor organizations.
    ``(b) Duration.--Each grant recipient shall use amounts 
provided under the grant to develop and operate a 4- or 6-year 
tech-prep education program described in subsection (c).
    ``(c) Contents of Tech-Prep Program.--Each tech-prep 
program shall--
            ``(1) be carried out under an articulation 
        agreement between the participants in the consortium;
            ``(2) consist of at least 2 years of secondary 
        school preceding graduation and 2 years or more of 
        higher education, or an apprenticeship program of at 
        least 2 years following secondary instruction, with a 
        common core of required proficiency in mathematics, 
        science, reading, writing, communications, and 
        technologies designed to lead to an associate's degree 
        or a postsecondary certificate in a specific career 
        field;
            ``(3) include the development of tech-prep programs 
        for both secondary and postsecondary, including 
        consortium, participants in the consortium that--
                    ``(A) meets academic standards developed by 
                the State;
                    ``(B) links secondary schools and 2-year 
                postsecondary institutions, and if possible and 
                practicable, 4-year institutions of higher 
                education through nonduplicative sequences of 
                courses in career fields, including the 
                investigation of opportunities for tech-prep 
                secondary students to enroll concurrently in 
                secondary and postsecondary coursework;
                    ``(C) uses, if appropriate and available, 
                work-based or worksite learning in conjunction 
                with business and all aspects of an industry; 
                and
                    ``(D) uses educational technology and 
                distance learning, as appropriate, to involve 
                all the consortium partners more fully in the 
                development and operation of programs;
            ``(4) include in-service training for teachers 
        that--
                    ``(A) is designed to train vocational and 
                technical teachers to effectively implement 
                tech-prep programs;
                    ``(B) provides for joint training for 
                teachers in the tech-prep consortium;
                    ``(C) is designed to ensure that teachers 
                and administrators stay current with the needs, 
                expectations, and methods of business and all 
                aspects of an industry;
                    ``(D) focuses on training postsecondary 
                education faculty in the use of contextual and 
                applied curricula and instruction; and
                    ``(E) provides training in the use and 
                application of technology;
            ``(5) include training programs for counselors 
        designed to enable counselors to more effectively--
                    ``(A) provide information to students 
                regarding tech-prep education programs;
                    ``(B) support student progress in 
                completing tech-prep programs;
                    ``(C) provide information on related 
                employment opportunities;
                    ``(D) ensure that such students are placed 
                in appropriate employment; and
                    ``(E) stay current with the needs, 
                expectations, and methods of business and all 
                aspects of an industry;
            ``(6) provide equal access, to the full range of 
        technical preparation programs, to individuals who are 
        members of special populations, including the 
        development of tech-prep program services appropriate 
        to the needs of special populations; and
            ``(7) provide for preparatory services that assist 
        participants in tech-prep programs.
    ``(d) Additional Authorized Activities.--Each tech-prep 
program may--
            ``(1) provide for the acquisition of tech-prep 
        program equipment;
            ``(2) acquire technical assistance from State or 
        local entities that have designed, established, and 
        operated tech-prep programs that have effectively used 
        educational technology and distance learning in the 
        delivery of curricula and services and in the 
        articulation process; and
            ``(3) establish articulation agreements with 
        institutions of higher education, labor organizations, 
        or businesses located inside or outside the State and 
        served by the consortium, especially with regard to 
        using distance learning and educational technology to 
        provide for the delivery of services and programs.

``SEC. 205. CONSORTIUM APPLICATIONS.

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

``SEC. 206. REPORT.

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

``SEC. 207. DEMONSTRATION PROGRAM.

    ``(a) Demonstration Program Authorized.--From funds 
appropriated under subsection (e) for a fiscal year, the 
Secretary shall award grants to consortia described in section 
204(a) to enable the consortia to carry out tech-prep education 
programs.
    ``(b) Program Contents.--Each tech-prep program referred to 
in subsection (a)--
            ``(1) shall--
                    ``(A) involve the location of a secondary 
                school on the site of a community college;
                    ``(B) involve a business as a member of the 
                consortium; and
                    ``(C) require the voluntary participation 
                of secondary school students in the tech-prep 
                education program; and
            ``(2) may provide summer internships at a business 
        for students or teachers.
    ``(c) Application.--Each consortium desiring a grant under 
this section shall submit an application to the Secretary at 
such time, in such manner and accompanied by such information 
as the Secretary may require.
    ``(d) Applicability.--The provisions of sections 203, 204, 
205, and 206 shall not apply to this section, except that--
            ``(1) the provisions of section 204(a) shall apply 
        for purposes of describing consortia eligible to 
        receive assistance under this section;
            ``(2) each tech-prep education program assisted 
        under this section shall meet the requirements of 
        paragraphs (1), (2), (3)(A), (3)(B), (3)(C), (3)(D), 
        (4), (5), (6), and (7) of section 204(c), except that 
        such paragraph (3)(B) shall be applied by striking ``, 
        and if possible and practicable, 4-year institutions of 
        higher education through nonduplicative sequences of 
        courses in career fields''; and
            ``(3) in awarding grants under this section, the 
        Secretary shall give special consideration to consortia 
        submitting applications under subsection (c) that meet 
        the requirements of paragraphs (1), (3), (4), and (5) 
        of section 205(d), except that such paragraph (1) shall 
        be applied by striking ``or the transfer of students to 
        baccalaureate degree programs''.
    ``(e) Authorization of Appropriations.--There is authorized 
to be appropriated to carry out this section $25,000,000 for 
fiscal year 1999 and each of the 4 succeeding fiscal years.

``SEC. 208. AUTHORIZATION OF APPROPRIATIONS.

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

                    ``TITLE III--GENERAL PROVISIONS

              ``PART A--FEDERAL ADMINISTRATIVE PROVISIONS

``SEC. 311. FISCAL REQUIREMENTS.

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

``SEC. 312. AUTHORITY TO MAKE PAYMENTS.

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

``SEC. 313. CONSTRUCTION.

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

``SEC. 314. VOLUNTARY SELECTION AND PARTICIPATION.

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

``SEC. 315. LIMITATION FOR CERTAIN STUDENTS.

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

``SEC. 316. FEDERAL LAWS GUARANTEEING CIVIL RIGHTS.

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

``SEC. 317. AUTHORIZATION OF SECRETARY.

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

``SEC. 318. PARTICIPATION OF PRIVATE SCHOOL PERSONNEL.

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

               ``PART B--STATE ADMINISTRATIVE PROVISIONS

``SEC. 321. JOINT FUNDING.

    ``(a) General Authority.--Funds made available to eligible 
agencies under this Act may be used to provide additional funds 
under an applicable program if--
            ``(1) such program otherwise meets the requirements 
        of this Act and the requirements of the applicable 
        program;
            ``(2) such program serves the same individuals that 
        are served under this Act;
            ``(3) such program provides services in a 
        coordinated manner with services provided under this 
        Act; and
            ``(4) such funds are used to supplement, and not 
        supplant, funds provided from non-Federal sources.
    ``(b) Applicable Program.--For the purposes of this 
section, the term ``applicable program'' means any program 
under any of the following provisions of law:
            ``(1) Chapters 4 and 5 of subtitle B of title I of 
        Public Law 105-220.
            ``(2) The Wagner-Peyser Act.
    ``(c) Use of Funds as Matching Funds.--For the purposes of 
this section, the term `additional funds' does not include 
funds used as matching funds.

``SEC. 322. PROHIBITION ON USE OF FUNDS TO INDUCE OUT-OF-STATE 
                    RELOCATION OF BUSINESSES.

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

``SEC. 323. STATE ADMINISTRATIVE COSTS.

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

``SEC. 324. LIMITATION ON FEDERAL REGULATIONS.

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

``SEC. 325. STUDENT ASSISTANCE AND OTHER FEDERAL PROGRAMS.

    ``(a) Attendance Costs Not Treated as Income or 
Resources.--The portion of any student financial assistance 
received under this Act that is made available for attendance 
costs described in subsection (b) shall not be considered as 
income or resources in determining eligibility for assistance 
under any other program funded in whole or in part with Federal 
funds.
    ``(b) Attendance Costs.--The attendance costs described in 
this subsection are--
            ``(1) tuition and fees normally assessed a student 
        carrying an academic workload as determined by the 
        institution, and including costs for rental or purchase 
        of any equipment, materials, or supplies required of 
        all students in that course of study; and
            ``(2) an allowance for books, supplies, 
        transportation, dependent care, and miscellaneous 
        personal expenses for a student attending the 
        institution on at least a half-time basis, as 
        determined by the institution.
    ``(c) Costs of Vocational and Technical Education 
Services.--Funds made available under this Act may be used to 
pay for the costs of vocational and technical education 
services required in an individualized education plan developed 
pursuant to section 614(d) of the Individuals with Disabilities 
Education Act and services necessary to meet the requirements 
of section 504 of the Rehabilitation Act of 1973 with respect 
to ensuring equal access to vocational and technical 
education.''.

SEC. 2. PROMOTING SCHOLAR-ATHLETE COMPETITIONS.

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

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

    (a) Immigration and Nationality Act.--Section 245A(h)(4)(C) 
of the Immigration and Nationality Act (8 U.S.C. 
1255a(h)(4)(C)) is amended by striking ``Vocational Education 
Act of 1963'' and inserting ``Carl D. Perkins Vocational and 
Technical Education Act of 1998''.
    (b) National Defense Authorization Act.--Section 4461 of 
the National Defense Authorization Act for Fiscal Year 1993 (10 
U.S.C. 1143 note) is amended--
            (1) by striking paragraph (4); and
            (2) by redesignating paragraphs (5) and (6) as 
        paragraphs (4) and (5), respectively.
    (c) Elementary and Secondary Education Act of 1965.--The 
Elementary and Secondary Education Act of 1965 (20 U.S.C. 6301 
et seq.) is amended--
            (1) in section 1114(b)(2)(C)(v) (20 U.S.C. 
        6314(b)(2)(C)(v)), by striking ``Carl D. Perkins 
        Vocational and Applied Technical Education Act,'' and 
        inserting ``Carl D. Perkins Vocational and Technical 
        Education Act of 1998'';
            (2) in section 9115(b)(5) (20 U.S.C. 7815(b)(5)), 
        by striking ``Carl D. Perkins Vocational and Technical 
        Education Act'' and inserting ``Carl D. Perkins 
        Vocational and Technical Education Act of 1998'';
            (3) in section 14302(a)(2) (20 U.S.C. 8852(a)(2))--
                    (A) by striking subparagraph (C); and
                    (B) by redesignating subparagraphs (D), 
                (E), and (F) as subparagraphs (C), (D), and 
                (E), respectively; and
            (4) in the matter preceding subparagraph (A) of 
        section 14307(a)(1) (20 U.S.C. 8857(a)(1)), by striking 
        ``Carl D. Perkins Vocational and Applied Technology 
        Technical Education Act'' and inserting ``Carl D. 
        Perkins Vocational and Technical Education Act of 
        1998''.
    (d) Equity in Educational Land-Grant Status Act of 1994.--
Section 533(c)(4)(A) of the Equity in Educational Land-Grant 
Status Act of 1994 (7 U.S.C. 301 note) is amended by striking 
``(20 U.S.C. 2397h(3)'' and inserting ``, as such section was 
in effect on the day preceding the date of enactment of the 
Carl D. Perkins Vocational and Applied Technology Education 
Amendments of 1998''.
    (e) Improving America's Schools Act of 1994.--Section 563 
of the Improving America's Schools Act of 1994 (20 U.S.C. 6301 
note) is amended by striking ``the date of enactment of an Act 
reauthorizing the Carl D. Perkins Vocational and Technical 
Education Act (20 U.S.C. 2301 et seq.)'' and inserting ``July 
1, 1999''.
    (f) Workforce Investment Act of 1998.--Section 101(3) of 
the Workforce Investment Act of 1998 (29 U.S.C. 2801(3)) is 
amended by striking ``section 521 of the Carl D. Perkins 
Vocational and Applied Technology Education Act (20 U.S.C. 
2471)'' and inserting ``section 3 of the Carl D. Perkins 
Vocational and Technical Education Act of 1998''.
    (g) Appalachian Regional Development Act of 1965.--Section 
214(c) of the Appalachian Regional Development Act of 1965 (40 
U.S.C. App. 214(c)) is amended by striking ``Carl D. Perkins 
Vocational Education Act'' and inserting ``Carl D. Perkins 
Vocational and Technical Education Act of 1998''.
    (h) Vocational Education Amendments of 1968.--Section 104 
of the Vocational Education Amendments of 1968 (82 Stat. 1091) 
is amended by striking ``section 3 of the Carl D. Perkins 
Vocational Education Act'' and inserting ``the Carl D. Perkins 
Vocational and Technical Education Act of 1998''.
    (i) Older Americans Act of 1965.--The Older Americans Act 
of 1965 (42 U.S.C. 3001 et seq.) is amended--
            (1) in section 502(b)(1)(N)(i) (42 U.S.C. 
        3056(b)(1)(N)(i)), by striking ``or the Carl D. Perkins 
        Vocational and Applied Technology Education Act (20 
        U.S.C. 2301 et seq.)''; and
            (2) in section 505(d)(2) (42 U.S.C. 3056c(d)(2))--
                    (A) by striking ``employment and training 
                programs'' and inserting ``workforce investment 
                activities''; and
                    (B) by striking ``the Carl D. Perkins 
                Vocational and Applied Technology Education Act 
                (20 U.S.C. 2301 et seq.)'' and inserting ``the 
                Carl D. Perkins Vocational and Technical 
                Education Act of 1998''.

SEC. 4. ADULT EDUCATION AND FAMILY LITERACY.

    The Adult Education and Family Literacy Act (20 U.S.C. 9201 
et seq.) is amended--
            (1) in section 224, by adding at the end the 
        following:
    ``(g) Transition.--The provisions of this section shall be 
subject to section 506(b).''; and
            (2) by amending paragraph (2) of section 506(b) to 
        read as follows:
            ``(2) Limitation.--The authority to take actions 
        under paragraph (1) shall apply until July 1, 2000.''.

SEC. 5. TECHNICAL AND CONFORMING AMENDMENTS.

    (a) Workforce Investment Act of 1998.--Section 121 of the 
Workforce Investment Act of 1998 (29 U.S.C. 2841) is amended--
            (1) in subsection (b)(1)(B)(iv), by inserting 
        before the semicolon the following: ``(other than part 
        C of title I of such Act and subject to subsection 
        (f))''; and
            (2) by adding at the end the following:
    ``(f) Application to Certain Vocational Rehabilitation 
Programs.--
            ``(1) Limitation.--Nothing in this section shall be 
        construed to apply to part C of title I of the 
        Rehabilitation Act of 1973 (29 U.S.C. 741).
            ``(2) Client assistance.--Nothing in this Act shall 
        be construed to require that any entity carrying out a 
        client assistance program authorized under section 112 
        of the Rehabilitation Act of 1973 (29 U.S.C. 732)--
                    ``(A) violate the requirement of section 
                112(c)(1)(A) of that Act that the entity be 
                independent of any agency which provides 
                treatment, services, or rehabilitation to 
                individuals under that Act; or
                    ``(B) carry out any activity not authorized 
                under section 112 of that Act (including 
                appropriate Federal regulations).''.
    (b) Wagner-Peyser Act.--
            (1) In general.--Section 15 of the Wagner-Peyser 
        Act (as added by section 309 of the Workforce 
        Investment Act of 1998) is amended--
                    (A) in subsection (a)(2)(A)(i), by striking 
                ``under'' and all that follows through ``for 
                which'' and inserting ``under the provisions of 
                this section for any purpose other than the 
                statistical purposes for which''; and
                    (B) in subsection (e)(2)(G), by striking 
                ``complementary'' and inserting 
                ``complementarity''.
            (2) Effective date.--The amendments made by 
        paragraph (1) take effect July 2, 1999.
    (c) Rehabilitation Act of 1973.--Section 725(c)(7) of the 
Rehabilitation Act of 1973 (as amended by section 410 of the 
Workforce Investment Act of 1998) is amended by striking 
``management,'' and all that follows and inserting 
``management;''.

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

    (a) Higher Education Amendments of 1986.--Title XIII of the 
Higher Education Amendments of 1986 (Public Law 99-498) is 
repealed.
    (b) Higher Education Amendments of 1992.--The following 
provisions of the Higher Education Amendments of 1992 (Public 
Law 102-325) are repealed:
            (1) Parts E, F, and G of title XIII.
            (2) Title XIV.
            (3) Parts A, B, C, and D of title XV.
    
      And the Senate agree to the same.

                                   Bill Goodling,
                                   Howard ``Buck'' McKeon,
                                   Frank Riggs,
                                   John E. Peterson,
                                   Sam Johnson,
                                   Bill Clay,
                                   Matthew G. Martinez,
                                   Dale E. Kildee,
                                 Managers on the Part of the House.

                                   Jim Jeffords,
                                   Dan Coats,
                                   Judd Gregg,
                                   Bill Frist,
                                   Mike DeWine,
                                   Michael B. Enzi,
                                   Tim Hutchinson,
                                   Susan Collins,
                                   Mitch McConnell,
                                   Ted Kennedy,
                                   Chris Dodd,
                                   Tom Harkin,
                                   Barbara A. Mikulski,
                                   Paul Wellstone,
                                   Jack Reed,
                                Managers on the Part of the Senate.
       JOINT EXPLANATORY STATEMENT OF THE COMMITTEE OF CONFERENCE

      The managers on the part of the House and the Senate at 
the conference on the disagreeing votes of the two Houses on 
the amendment of the Senate to the bill (H.R. 1853) to amend 
the Carl D. Perkins Vocational and Applied Technology Education 
Act, submit the following joint statement to the House and the 
Senate in explanation of the effect of the action agreed upon 
by the managers and recommended in the accompanying conference 
report:

  Title I--Vocational and Technical Education Assistance to the States

      The Conference agreement improves vocational and 
technical education by strengthening academics, broadening 
vocational opportunities for students, sending more money to 
the local level, and increasing flexibility for State and local 
program needs.

                           formula provisions

      The Conference agreement authorizes such sums for Fiscal 
Years 1999-2003.
Federal to State formula
      The House bill changes the formula provisions in the Act. 
The Federal to State formula allots basic State grant funds to 
States based upon two populations. Fifty percent would be sent 
based upon the population aged 15-19 in each State, and 50 
percent based upon the population aged 20-24 in the State. This 
distribution would be subject to each State receiving a minimum 
amount of one half of one percent of the total grant amounts 
(small state minimum). State allotments would be adjusted by 
the per capita income of the State, with the maximum adjustment 
ratio being 0.55 and the minimum being 0.4.
      The Senate bill follows current law.
      The Conference agreement follows the Senate bill.
Outlying areas
      Both bills provide for grants of $500,000 made to Guam, 
and $190,000 each to American Samoa, and the Commonwealth of 
the Northern Marianna Islands from reserved funds. In addition, 
both bills require the Freely Associated States (the Federated 
States of Micronesia, the Republic of the Marshall Islands, and 
the Republic of Palau) to compete for their allotment with Guam 
and American Samoa.
      The House bill terminates funding for the Freely 
Associated States (the Republic of the Marshall Islands, the 
Federated States of Micronesia, and the Republic of Palau) on 
September 30, 2001.
      The Senate bill terminates funding for the Freely 
Associated States (the Republic of the Marshall Islands, the 
Federated States of Micronesia, and the Republic of Palau) 
after September 30, 2004.
      The Conference agreement follows the House bill.
Within State formula
      The House bill requires States to send 90 percent of 
their basic State grant to the local level for secondary, 
postsecondary, and adult vocational education activities. Of 
this 90 percent,a State may reserve up to ten percent for rural 
(five percent) and urban (five percent) areas in the State. A State is 
required to reserve eight percent of the basic State grant for State 
leadership activities and two percent for administrative activities.
      The Senate bill maintains several key set-asides found in 
current law. The Senate bill allocates 75 percent of the State 
grant for secondary, postsecondary, and adult vocational and 
technical education activities. The bill allows States to 
reserve 14 percent of their allotment for State leadership 
activities, ten percent for administration, and one percent for 
programming for criminal offenders.
      The Conference agreement allocates 85 percent of the 
State grant for secondary, postsecondary, and adult vocational 
and technical education programs at the local level. Of this 
allocation, ten percent may be made available to award grants 
to rural areas; areas with high percentages of vocational and 
technical education students; areas with high numbers of 
vocational and technical education students; and communities 
negatively impacted as a result of changes in the new within 
State formula. In adopting this change, the Conferees recognize 
the inequities inherent in any formula toward rural areas and 
provide through this reserve a mechanism for States to 
compensate for these inequities. In addition to rural areas, 
the Conferees realize that the formula may not adequately 
reflect those schools or local areas that have a high 
percentage or population of students in vocational technical 
education programs.
      The agreement also authorizes the State eligible agency 
to reserve an amount equal to ten percent of the total 
allotment for State leadership activities. Included in the 
funds reserved for State Leadership activities, up to one 
percent of the total allotment shall be used to serve criminal 
offenders, and not less than $60,000 but no more than $150,000 
shall be used for services targeting preparation for 
nontraditional training and employment. The Conference 
agreement authorizes the State eligible agency to reserve up to 
five percent of the total allotment, or $250,000 (whichever is 
greater), for State administrative activities. This may be used 
for the costs of developing a State plan, reviewing a local 
plan, monitoring and evaluating the effectiveness of a program, 
assuring the compliance with all of the applicable federal 
laws, or providing technical assistance. Each State that 
receives this financial assistance shall match the reserve 
funds on a dollar-for-dollar basis.

                          national activities

      Both bills require the Secretary to develop and implement 
a plan for evaluation and dissemination of vocational and 
technical education programs. Both bills include provisions 
with regard to what is to be included in the evaluation and 
assessment plans. In addition, both bills allow the Secretary 
to award grants to establish national research centers. 
Demonstration and dissemination activities are also included. 
Both bills also require information collection on vocational 
and technical education programs. Adequate information on 
access to vocational and technical education by secondary 
students with disabilities is maintained in the data system.
      The House bill extends the authorization of the National 
Occupational Information Coordinating Committee.
      The Senate bill had no comparable provision.
      The Conference agreement includes authority for the 
Secretary of Education to designate an entity at the national 
level to carry out certain functions related to occupational 
andemployment information for vocational and technical 
education programs. The agreement also gives authority to the Secretary 
to award grants to designated State entities, which may include State 
Occupational Information Coordinating Committees established prior to 
enactment of this Act, to carry out State activities related to such 
information. The agreement prohibits any duplication of activities 
authorized under section 15 of the Wagner-Peyser Act. The Conferees 
expect the Secretary of Education, in carrying out this section, to 
consult with the Bureau of Labor Statistics and the Employment and 
Training Administration in order to avoid any duplication of 
activities.

      INDIAN AND NATIVE HAWAIIAN PROGRAM AND TRIBALLY CONTROLLED 
          POSTSECONDARY VOCATIONAL AND TECHNICAL INSTITUTIONS

      Section 103 of the House bill authorizes grants to Indian 
tribes, tribal organizations, and Alaska Native entities for 
the purposes of carrying out vocational and technical 
education, but bars Bureau Funded secondary schools from 
receiving assistance under this Section. The Secretary is also 
directed to enter into contracts with organizations primarily 
serving Native Hawaiian programs. In addition, section 104 of 
the House bill also authorizes the Secretary to make grants to 
tribally controlled postsecondary vocational and technical 
institutions.
      Section 114 of the Senate bill authorizes the Secretary 
to enter into grants or contracts to Indian tribes, tribal 
organizations, Bureau funded schools, and organizations 
primarily serving native Hawaiians for the purposes of carrying 
out vocational and technical education programs. Any 
organization that receives a grant or enters into a contract 
would be required to establish adjusted levels of performance 
to be achieved by students served and evaluate the quality and 
effectiveness of the program. In addition, the Section 115 of 
the Senate bill also authorizes the Secretary to make grants to 
tribally controlled postsecondary vocational and technical 
institutions.
      The Conference agreement follows the Senate bill with 
regard to the issuance of grants or contracts to Indian tribes, 
tribal organizations, but adds Alaska Native entities as 
eligible to receive a grant or enter into a contract. The 
agreement follows the House bill with regard to the majority of 
the provisions relating to tribally controlled postsecondary 
vocational and technical education institutions, including the 
maintenance of a separate authorization of appropriations for 
these activities. In addition, the agreement follows the Senate 
bill on the requirement to conduct needs estimates and reports 
on facility quality. The Conference agreement closely follows 
current law on these provisions.

           state organizational and planning responsibilities

State plan
      The House bill requires a State plan to be for a minimum 
of five years. The plan would describe the vocational and 
technical education programs that would be carried out with 
funds received by the State. In addition, the plan would 
describe how funds received by the State would be allocated; 
describe how the State would improve the academic and technical 
skills ofvocational technical education students; ensure that 
participating students are taught to the same academic proficiencies as 
are provided all other students; and describe how the State would 
evaluate the effectiveness of the programs annually.
      The Senate bill requires a State plan to be for a minimum 
of three years. The plan would describe the vocational 
education activities designed to meet the State adjusted levels 
of performance. It would also describe how funds would be 
allocated. The plan would describe how funds would be used to 
expand and improve technology in instruction; to serve 
individuals in correctional institutions; and to link secondary 
and postsecondary education.
      The Conference agreement follows the House bill with a 
few modifications. The State plan is to include information 
that describes the vocational education activities to be 
assisted that are designed to meet the State adjusted levels of 
performance. The plan is to be reviewed prior to the third 
program year. In addition, the plan describes the eligible 
agency's program strategies for special populations.
State leadership
            Required use of funds
      The House bill requires State leadership funds to be used 
for activities targeting the use of technology, professional 
development, and support for programs that improve the academic 
and technical skills of participating vocational technical 
education students.
      The Senate bill requires State leadership funds be used 
for monitoring and evaluating the quality and improvement of 
vocational and technical education activities and for improving 
and expanding technology. In addition, the bill requires that 
funds be used to provide comprehensive professional 
development. The bill also requires that funds be used to: 
provide preparation for nontraditional training and employment; 
support tech-prep education activities; support partnerships 
among LEAs, institutions of higher education, adult education 
providers, and other entities; and to serve individuals in 
State institutions.
      The Conference agreement merges the provisions of the two 
bills. The agreement also includes support for programs for 
special populations, and describes how funds will be used to 
serve individuals in correctional institutions.
            Permissive use of funds
      The House bill allows State leadership funds to be used 
for technical support of eligible recipients and to establish 
agreements between secondary and postsecondary programs. It 
also allows funds to be used for: support for programs for 
special populations; cooperative education; vocational student 
organizations; support for public charter schools operating 
secondary vocational and technical education programs; and 
programs that offer experience in all aspects of an industry 
for which students would be preparing to enter. In addition 
funds may be used for: family and consumer sciences programs; 
corrections education; education and business partnerships; and 
to improve or develop new vocational and technical education 
courses.
      The Senate bill permits funds to be used for an array of 
activities, including support for vocational student 
organizations, and to provide programs for adults and school 
dropouts. It also allows funds to be used to provide assistance 
to participating students in finding a job andcontinuing their 
education.
      The Conference agreement merges the provisions of the two 
bills.
Substate formula at the secondary level
      The House bill phases in a new secondary substate formula 
over five years. Year one would operate under current law, and 
subsequent years would transition to a formula based 60 percent 
on poverty of individuals aged 15-19, and 40 percent on the 
population of individuals aged 15-19. The minimum grant would 
be $10,000. The House bill also includes a waiver ability for 
States that develop an alternative formula that more 
effectively targets funds on the basis of poverty to Local 
Educational Agencies (LEAs).
      The Senate bill follows current law on the distribution 
of funds, but raises the minimum grant to $25,000.
      The Conference agreement changes the secondary substate 
formula over two years. In the first year of the 
reauthorization, funds for secondary activities would be 
distributed under current law. Beginning in year two, seventy 
percent of the funds would be distributed based upon each LEA's 
share of the individuals aged 15-19 from economically 
disadvantaged families, and 30 percent distributed based upon 
the LEA's share of population aged 15-19. The agreement follows 
the House bill with regard to the waiver authority, and 
maintains current law with regard to the minimum grant of 
$15,000.
Substate funding at the postsecondary level
      The House bill follows current law on the postsecondary 
substate formula, which is based upon an institution's share of 
Pell Grant recipients. It sets the minimum grant at $35,000. 
The bill also allows the Secretary to waive requirements to 
permit alternative formulas.
      The Senate bill follows current law for the postsecondary 
substate formula, but sets the minimum grant at $65,000.
      The Conference agreement follows current law with regard 
to the formula, the minimum grant of $50,000, and waiver 
authority.

                             accountability

      The House bill requires the State to develop performance 
measures to measure the progress of the State. If the State has 
not demonstrated improvement in meeting its performance 
measures for 2 or more consecutive years, the Secretary may 
withhold all, or a portion of, the allotment. In addition, each 
eligible agency that receives an allotment must annually 
prepare and submit a report to the Secretary on the State's 
performance. This report is to include, in addition to other 
things, a description of the progress of special populations.
      The Senate bill requires the Secretary to publish 
performance measures to assess the progress of each eligible 
agency. Each eligible agency is to negotiate with the Secretary 
the adjusted levels of performance. Each eligible agency is to 
annually evaluate the vocational and technical education and 
tech-prep activities to determine the progress. If an 
organization is not making substantial progress, it is to 
conduct an assessment, enter into an improvement planbased on 
the assessment, and conduct regular evaluations of the progress being 
made. If the organization continues to not demonstrate improvement, the 
Secretary may withhold all, or a portion of, the allotment. The 
eligible agency that receives the allotment is to report annually on 
the progress made, including a description of the progress of special 
populations.
      The Conference agreement requires the State performance 
measures to be established solely by the State, and are to 
include core indicators of performance. The State adjusted 
levels of performance shall be agreed upon by the State 
eligible agency (with input from local eligible recipients) and 
the Secretary for the first two program years covered by the 
State plan. Prior to the third program year, the Secretary and 
eligible agency shall reach agreement on the core indicators of 
performance for the third, fourth and fifth program years. Each 
eligible agency that receives this allotment shall prepare and 
submit an annual report to the Secretary describing the 
agency's progress.

                            local provisions

Local uses of funds
            Required use of funds
      The House bill requires funds to be used for 
strengthening the academic and technical skills of 
participating students by strengthening the program components 
through the integration of academics with vocational and 
technical education; developing, improving, or expanding the 
use of technology in vocational and technical education; and 
providing professional development programs.
      The Senate bill requires funds to be used to integrate 
academic education with vocational and technical education for 
particapting students; to improve or expand the use of 
technology in vocational and technical education, including 
professional development; to provide professional development 
activities to teachers, counselors, and administrators; to 
develop and implement performance management systems and 
evaluations; to initiate and improve quality programs; to link 
secondary and postsecondary education, including tech-prep 
programs; to develop implement programs that provide access to 
quality programs for participating students, including special 
populations; to promote preparation for nontraditional training 
and employment.
      The Conference agreement follows the majority of the 
provisions in the House bill. The agreement also requires funds 
to be used for programs designed to train teachers specifically 
in the use of technology; to provide services and activities 
that are of sufficient size, scope, and quality to be 
effective; and to link, secondary and postsecondary vocational 
and technical education, including implementing tech-prep 
programs.
            Permissive use of funds
      The House bill permits funds to be used for establishing 
agreements between secondary and postsecondary vocational and 
technical education programs; involving parents, businesses, 
and employee representatives in the design and implementation 
of programs; providing career counseling; providing work 
related experience; programs for special populations; local 
educationand business partnerships; vocational and technical 
student organizations; mentoring and support services; equipment used 
on the programs; establishing programs and procedures that allow 
students and their parents to participate directly in decisions that 
influence the programs; teacher preparation programs; improving or 
developing new vocational and technical education programs; and support 
for family and consumer sciences programs.
      The Senate bill allows funds to be used for providing 
guidance and counseling to participating students; supporting 
vocational and technical student organizations; student 
internships; providing vocational and technical education 
programs for adults and school dropouts; acquiring and adapting 
equipment; providing assistance to students in finding an 
appropriate job and continuing their education; and supporting 
other vocational and technical education activities.
      The Conference agreement merges the two bills.

                      Title II--Tech-Prep Programs

      The House bill permits the eligible agency to award 
grants to consortia on a competitive basis or on the basis of 
formula, in order to develop and operate a four to six year 
tech-prep education program. The tech-prep program is to be 
carried out with agreement among the participants in the 
consortium; consist of at least two years secondary school and 
two years higher education or a two year apprenticeship 
program; include the development of tech-prep education program 
components appropriate to the participants; include in-service 
training for teachers and training programs for counselors; 
provide equal access to tech-prep programs; and provide for 
preparatory services that assist participants.
      The Senate bill permits the eligible agency to award 
grants to consortia for the development and operation of 
programs designed to provide tech-prep education. The tech-prep 
program is to be carried out with agreement among the 
participants; consist of at least two years of secondary 
school, two years of higher education or a two year 
apprenticeship program; include the development of tech-prep 
education programs for participants; meet State academic 
standards; link secondary schools and two-year postsecondary 
institutions; use work-based or worksite learning along with 
business and industry; use educational technology and distance 
learning; include a professional development program for 
teachers and training programs for counselors; provide equal 
access to tech-prep programs; and provide preparatory programs 
to assist special populations.
      Both bills include provisions regarding the application 
process. The Conference agreement provides for grants to be 
awarded. These grants are to be awarded on a competitive basis 
or on the basis of formula. The agreement merges the House and 
the Senate bill with regard to the contents of the program. In 
addition, the agreement authorizes additional activities, 
including the acquisition of tech-prep education equipment, 
acquisition of technical assistance from State or local 
entities, the establishment of articulation agreements. The 
agreement also follows the House bill on the allotment 
provisions, but the Senate bill on appropriations and 
demonstration programs.

                     Title III--General Provisions

      Both bills clarify that the funds received under this Act 
shall be used to supplement, not supplant, the amount of funds 
that would be made available from non-Federal sources for 
vocational and technical education. Both bills also mandate 
that nothing in this Act shall be construed to permit, allow, 
encourage, or authorize any Federal control over any aspect of 
a private, religious, or home school.
      The House bill includes provisions clarifying that: none 
of the funds under this Act shall be used for students prior to 
the seventh grade; and that none of the funds under the Act 
shall be used to require any secondary school student to choose 
or pursue a specific career path or major or to mandate 
participation in a vocational and technical education program 
or attain a federally funded skill level, standard, or 
certificate of mastery. the bill further includes provisions 
clarifying that: nothing in the Act shall be construed to be 
inconsistent with Federal laws guaranteeing civil rights; 
permits the participation of personnel in non-profit private 
schools; allows the State to use additional funds under 
applicable programs; and prohibits funds to be used for the 
sole purpose of providing incentives to relocate a business 
from one State to another.
      The Conference agreement generally follows the House 
bill, but merges provisions from both bills.

                              Definitions

                          special populations

      The House bill includes individuals with disabilities, 
economically disadvantaged individuals, individuals with 
limited English proficiency, and individuals participating in 
nontraditional training and employment when describing special 
populations.
      The Senate bill includes low-income individuals including 
foster children, individuals with disabilities, single parents 
and displaced homemakers, and individuals with other barriers 
to educational achievement including individuals with limited 
English proficiency when describing special populations.
      The Conference agreement defines special populations as 
individuals with disabilities; individuals from economically 
disadvantaged families, including foster children; individuals 
preparing for non-traditional training and employment; single 
parents, including single pregnant women; displaced homemakers; 
and individuals with other barriers to educational achievement, 
including individuals with limited English proficiency.

                                   Bill Goodling,
                                   Howard ``Buck'' McKeon,
                                   Frank Riggs,
                                   John E. Peterson,
                                   Sam Johnson,
                                   Bill Clay,
                                   Matthew G. Martinez,
                                   Dale E. Kildee,
                                 Managers on the Part of the House.

                                   Jim Jeffords,
                                   Dan Coats,
                                   Judd Gregg,
                                   Bill Frist,
                                   Mike DeWine,
                                   Michael B. Enzi,
                                   Tim Hutchinson,
                                   Susan Collins,
                                   Mitch McConnell,
                                   Ted Kennedy,
                                   Chris Dodd,
                                   Tom Harkin,
                                   Barbara A. Mikulski,
                                   Paul Wellstone,
                                   Jack Reed,
                                Managers on the Part of the Senate.