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PUBLIC LAW 97-35—AUG. 13, 1981 CHAPTER 1—FINANCIAL ASSISTANCE TO MEET SPECIAL EDUCATIONAL NEEDS OF DISADVANTAGED CHILDREN DECLARATION OF POLICY

20 USC 3801.

20 USC 2701.

SEC. 552. The Congress declares it to be the policy of the United States to continue to provide financial assistance to State and local educational agencies to meet the special needs of educationally deprived children, on the basis of entitlements calculated under title I of the Elementary and Secondary Education Act of 1965, but to do so in a manner which will eliminate burdensome, unnecessary, and unproductive paperwork and free the schools of unnecessary Federal supervision, direction, and control. Further, the Congress recognizes the special educational needs of children of low-income families, and that concentrations of such children in local educationed agencies adversely affect their ability to provide educational programs which will meet the needs of such children. The Congress also finds that Federal assistance for this purpose will be more effective if education officials, principals, teachers, and supporting personnel are freed from overly prescriptive regulations and administrative burdens which are not necessary for fiscal accountability and make no contribution to the instructional program. DURATION OP A S S I S T A N C E

20 USC 3802.

SEC. 553. During the period beginning October 1, 1982, and ending September 30, 1987, the Secretary shall, in accordance with the provisions of this subtitle, make payments to State educational agencies for grants made on the basis of enticements created under title I of the Elementary and Secondary Education Act of 1965 and calculated in accordance with provisions of that title in effect on September 30, 1982. APPLICABILITY OP TITLE I PROVISIONS OP LAW

20 USC 3803.

20 USC 2711. 20 USC 2721. 20 USC 2761. 20 USC 2771. 20 USC 2781. 20 USC 2791.

20 USC 2841.

554. (a) PROGRAM ELIGIBILITY.—Except as otherwise provided in this subtitle, the Secretary shall make payments based up Subpart 1—"ProgramsforMigratory Children"j (B) Subpart 2^"Programs for Handicapped ChHAren"; (Q Subpart 3—"Programs for Ne^ected and DeHnqaent OffldterfWd (0) Subpart 4—"General Provisions for State Operated Ptograms^. Ob) AmstaistAAtPm PROVISIONS.—The Secretary, in making ^le payments and determinations specified m subsection (a), [dftau conuntie to usetihiefollowing provisions of title I of the Elementary and Secondary Education Act as in effect on September 30, 1982: (1) Part E—"Payments": (A) Section 191—"Payment Metiwds"; SEC.

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(B) Section 192—"Amount of Payments to Local Educational Agencies"; (C) Section 193—"Adjustments Where Necessitated by Appropriations"; and (D) Section 194—"Payments for State Administration", subject to subsection (d) of this section. (2) Part F—"General Provisions": (A) Section 197—"Limitation on Grants to Puerto Rico"; and (B) Section 198—"Definitions" and conforming amendments to other Acts, except that only those definitions applicable to this subtitle shall be used. (c) APPLICABILITY RULE.—The provisions of title I of the Elementary and Secondary Education Act of 1965 which are not specifically made applicable by this chapter shall not be applicable to programs authorized under this chapter. (d) AMENDMENT.—Section 194(a)(l) of the Elementary and Secondary Education Act of 1965 is amended by striking out "1.5 per centmn" and inserting in lieu thereof "1 per centum".

20 USC 2842. 20 USC 2843. 20 USC 2844. 20 USC 2851. 20 USC 2853. 20 USC 2854.

20 USC 2701. 20 USC 2844.

AUTHORIZED PROGRAMS

SEC. 555. (a) GENERAL.—Each State and local educational agency 20 USC 3804. shall use the payments under this chapter for programs and projects (including the acquisition of equipment and, where necessary, the construction of school facilities) which are designed to meet the special educational needs of educationally deprivedchildren. (b) PROGRAM DESIGN.—State agency programs shall be designed to serve those categories of children counted for eligibility for grants under section 554(a)(2) in accordance with the requirements of this chapter. (c) PROGRAM DESCRIPTION.—^A local education agency may use funds received under this chapter only for programs and projects which are designed to meet the special educational needs of educationally deprived children identified in accordance with section 556(b)(2), and which are included in an application for assistance approved by the State educational agency. Such programs and projects may include the acquisition of equipment and instructional materials, employment of special instructional and counseling and guidance personnel, employment and training of teacher aides, payments to teachers of amounts in excess of regular salary schedules as a bonus for service in schools serving project areas, the training of teachers, the construction, where necessary, of school facilities, other expenditures authorized under title I of the Elementary and Secondary Education Act as in effect September 30, 1982, and planning for such programs and projects. (d) RECORDS AND INFORMATION.—Each State educational agency shall keep such records and provide such information to the Secretary as may be required for fiscal audit and program evaluation (consistent with the responsibilities of the Secretary under this chapter). APPROVAL OP APPLICATIONS

556. (a) APPLICATION BY LOCAL EDUCATIONAL AGENCY.—A local 20 USC 3805. educational agency may receive a grant under this chapter for any fiscal year if it has on file with me State educational agency an application wMch describes the programs and projects to be conducted with such assistance for a period of not more than three years, SEC.

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PUBLIC LAW 97-35—AUG. 13, 1981 and such application has been approved by the State educational agency. 0)) APPLICATION ASSURANCES.—The application described in subsection (a) shall be approved if it provides assurances satisfactory to the State educational agency that the local educational agency Will keep such records and provide such information to the State educationsu agency as may be required for fiscal audit and program evaluation (consistent with the responsibilities of the State agency under this chapter), and that the programs and projects described— dXA) are conducted in attendance areas of such agency having the highest concentrations of low-income children; (B) are located in all attendance areas of an agency which has a uniformly high concentration of such children; or (C) are designed to utilize part of the available funds for services which promise to provide significant help for all such children served by such agency; (2) are based upon an annual assessment of educational needs which identifies educationally deprived children in all eligible attendance areas, permits selection of those children who have the greatest need for special assistance, and determines the needs of participating children with sufficient specificity to ensure concentration on those needs; (8) are of sufficient size, scope, and quality to give reasonable promise of substantial progress toward meeting the s ^ i a l educational needs of the children being served suid are designed and implemented in consultation with parents and teachers of such children; (4) will be evaluated in terms of their effectiveness in achieving the goals set for them, and that such evaluations shall include objective measurements of educational achievement in basic skills and a determination of whether improved performance is sustained over a period of more than one year; and (5) make provision for services to educationally deprived children attending private elementary and secondary schools in accordance with section 557. PARTICIPATION OF CHILDREN ENROLLED IN PRIVATE SCHOOLS

20 USC 3806.

557. (a) GENERAL REQUIREMENTS.—To the extent consistent with the number of educationally deprived children in the school district of the local educational agency who are enrolled in private elementary and secondary schools, such agency shall make provisions for including special educational services and arrangements (such as dual enrollment, educational radio and television, and mobile educational services and equipment) in which such children can participate and which meet the requirements of sections 555(c), 556(b)(2), (3), and (4), and 558(b). Expenditures for educational services and arrangements pursuant to this section for educationally deprived children in private schools shall be equal (taking into account the number of children to be served and the special educational needs of such children) to expenditures for children enrolled in the public schools of the local educational agency. (b) BYPASS PROVISION.—(1) If a local educational agency is prohibited by law from providing for the participation in specisd programs for educationally deprived children enrolled in private elementary and secondary schools as required by subsection (a), the Secretary shall waive such requirements, and shall arrange for the provision of SEC

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services to such children through arrangements which shall be subject to the requirements of subsection (a). (2) If the Secretary determines that a local educational agency has substantially failed to provide for the participation on an equitable basis of educationally deprived children enrolled in private elementary and secondary schools as required by subsection (a), he shall arrange for the provision of services to such children through arrangements which shall be subject to the requirements of subsection (a), upon which determination the provisions of subsection (a) shall be waived. (3)(A) When the Secretary arranges for services pursuant to this subsection, he shall, after consultation with the appropriate public and private school officials, pay to the provider the cost of such services, including the administrative cost of arranging for such services, from the appropriate allocation or allocations under this chapter. (B) Pending final resolution of any investigation or complaint that could result in a determination under this subsection, the Secretary may withhold from the allocation of the affected State or local educational agency the amount he estimates would be necessary to pay the cost of such services. (C) Any determination by the Secretary under this section shall continue in effect until the Secretary determines that there will no longer be any failure or inability on the part of the local educational agency to meet the requirements of subsection (a). (4)(A) The Secretary shall not take any final action under this subsection until the State educational agency and local educational agency affected by such action have had an opportunity, for at least forty-five days after receiving written notice thereof, to submit written objections and to appear before the Secretary or his designee to show cause why such action should not be taken. (B) If a State or local educational agency is dissatisfied with the Secretary's final action after a proceeding under subparagraph (A) of this paragraph, it may within sixty days after notice of such action, file with the United States court of appeals for the circuit in which such State is located a petition for review of that action. A copy of the petition shall be forthwith transmitted by the clerk of the court to the Secretary. The Secretary thereupon shall file in the court the record of the proceedings on which he based his action, as provided in section 2112 of title 28, United States Code. (C) The findings of fact by the Secretary, if supported by substantial evidence, shall be conclusive; but the court, for good cause shown, may remand the case to the Secretary to take further evidence, and the Secretary may thereupon make new or modified findings of fact and may modify his previous action, and shall file in the court the record of the further proceedings. Such new or modified findings of fact shall likewise be conclusive if supported by substantial evidence. (D) Upon the filing of a petition under subparagraph (B), the court shall have jurisdiction to affirm the action of the Secretary or to set it aside, in whole or in part. The judgment of the court shall be subject to review by the Supreme Court of the United States upon certiorari or certification as provided in section 1254 of title 28, United States Code. (c) Any bypass determination by the Secretary under title I of the Elementary and Secondary Education Act of 1965 prior to the 20 USC 2701. effective date of this chapter shall remain in effect to the extent consistent with the purposes of this chapter.

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 95 STAT. 468

PUBLIC LAW 97-35—AUG. 13, 1981 GENERAL PROVISIONS

20 USC 3807.

Waiver of requirements.

558. (a) MAINTENANCE OP EPFORT.—(1) Except as provided in paragraph (2), a local educational agency may receive funds under this chapter for any fiscal year only if the State educationsJ agency finds that either the combined fiscal effort per student or the aggregate expenditures of that agency and the State with respect to the provision of free public education by that agency for the preceding fiscal year was not less than 90 per centum of such combined fiscal effort or aggregate expenditures for the second preceding fiscal year. (2) The State educational agency shall reduce the amount of the allocation of funds under this chapter in any fiscal year in the exact proportion to which a local educational agency fails to meet the requirement of paragraph (1) by falling below 90 per centum of both the combined fiscal effort per student and aggregate expenditures (using the measure most favorable to such local agency), and no such lesser amount shall be used for computing the enort required under paragraph (1) for subsequent years. (3) The State educational agency may waive, for one fiscal year only, the requirements of this subsection if the State educational agency determines that such a waiver would be equitable due to exceptional or uncontrollable circumstances such as a natural disaster or a precipitous and unforeseen decline in the financial resources of the local educational agency. SEC.

(b) FEDERAL FUNDS TO SUPPLEMENT, NOT SUPPLANT REGULAR NONFEDERAL FUNDS.—A local educational agency may use funds received

under this chapter only so as to supplement and, to the extent practical, increase the level of funds that would, in the absence of such Federal funds, be made available from non-Federal sources for the education of pupils participating in programs and projects assisted under this chapter, and in no case may such funds be so used as to supplant such funds from such non-Federal sources. In order to demonstrate compliance with this subsection a local education agency shall not be required to provide services under this chapter outside the regular classroom or school program. (c) CoMPARABiuTY OP SERVICES.—(1) A local oducational agency may receive funds under this chapter only if State and local fun<b will be used in the district of such agency to provide services in project areeis which, taken as a whole, are at least comparable to services being provided in areas in such district whicn are not receiving funds under this chapter. Where all school attendance areeis in the district of the agency are designated as project areas, the agency may receive such funds only if State and local funds are used to provide services which, taken as a whole, are substantially comparable in each project area. (2) A local educational agency shall be deemed to have met the requirements of pargigraph (1) if it has filed with the State educational agency a written assurance that it has established— (A) a districtwide salsiry schedule; (B) a policy to ensure equivalence among schools in teachers, administrators, and auxiliary personnel; and (C) a policy to ensure equivalence among schools in the provision of curriculum materials and instructional supplies. Unpredictable changes in student enrollment or personnel assignments which occur after the beginning of a school year shall not be included as a factor in determining comparability of services.

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(d) EXCLUSION OP SPECIAL STATE AND LOCAL PROGRAM FUNDS.—For

the purposes of determining compliance with the requirements of subsections (b) and (c), a locm educational agency may exclude State and local funds expended for carrying out special programs to meet the educational needs of educationmly deprived children, if such programs are consistent with the purposes of this chapter. (e) ALLOCATION OF FUNDS IN CERTAIN STATES.—In any State in which a large number of local educational ^encies overlap county boundaries, the State educational agency is authorized to make allocations of basic grants and special incentive grants directly to local educational agencies without regard to counties, if such allocations were made during fiscal year 1982, except that (1) precisely the same factors are used to determine the amount of such grants to counties, and (2) a local educational agency dissatisfied with such determination is afforded an opportunity for a hearing on the matter by the State educational agency. CHAPTER 2—CONSOLIDATION OF FEDERAL PROGRAMS FOR ELEMENTARY AND SECONDARY EDUCATION STATEMENT OF PURPOSE

SEC. 561. (a) It is the purpose of this chapter to consolidate the program authorizations contained in— (1) titles II, m, IV, V, VI, Vm, and IX (except part C) of the Elementary and Secondary Education Act of 1965; (2) the Alcohol and Drug Abuse Education Act; (3) part A and section 532 of title V of the Higher Education Act of 1965; (4) the Follow Through Act (on a phased basis); (5) section 3(a)(1) of the National Science Foundation Act of 1950 relating to precoUege science teacher training; and (6) the Career Education Incentive Act; into a single authorization of grants to States for the same purposes set forth in the provisions of law specified in this sentence, but to be used in accordance with the educational needs and priorities of State and local educational agencies as determined by such agencies. It is the further purpose and intent of Congress to financially assist State and local educational agencies to improve elementary and secondary education (including preschool education) for children attendiag both public and private schools, and to do so in a manner designed to greatly reduce the enormous administrative and paperwork burden imposed on schools at the expense of their ability to educate children, (b) The basic responsibility for the administration of funds made available under this chapter is in the State educational agencies, but it is the intent of Congress that this responsibility be carried out with a minimum of paperwork and that the responsibility for the design and implementation of programs assisted under the chapter shall be mainly that of local educational agencies, school superintendents and principals, and classroom teachers and supporting personnel, because they have the most direct contact with students and are most directly responsible to parents.

20 USC 38ii. 20 USC 2881 2941,3081,3i4i, 334}' '^'^^' ^^^^' 21 USC 1001 note^ 20 USC 1101, Post% 568 42 u ^ 1862. 20 USC 2601 note.

AUTHORIZATION OF APPROPRIATIONS; DURATION OF ASSISTANCE

SEC. 562. (a) There are authorized to be appropriated such sums as 20 USC 3812. may be necessary for fiscal year 1982 and each of the five succeeding fiscal years to carry out the provisions of this chapter.

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Ante, p. 445.

PUBLIC LAW 97-35—AUG. 13, 1981 (b) During the period beginning July 1, 1982, and ending September 30, 1987, the Secretary shall, in accordance with the provisions of this subtitle, make payments to State educational agencies for the purposes of this chapter. (c) Funds available under previously authorized programs shall be available for the purpose of such pa:pients in accordance with section 514(b)(2) of the Omnibus Education Reconciliation Act of 1981. ALLOTMENTS TO STATES

20 USC 3813.

"School-age population.' "States."

SEC. 563. (a) From the sxmis appropriated to carry out this chapter in any fiscal year, the Secretary shall reserve not to exceed 1 per centum for payments to Guam, American Samoa, the Virgin Islands, the Trust Territory of the Pacific Islands, and the Northern Mariana Islands, to be allotted in accordance with their respective needs. The Secretary shall reserve an additional amount, not to exceed 6 per centum of the sums appropriated, to carry out the purposes of section 583. From the remednder of such sums the Secretary shall allot to each State an £unount which bears the same ratio to the amount of such remainder as the school-age population of the State bears to the school-age population of all States, except that no State shall receive less than an amount equal to 0.5 per centum of such remainder, (b) For the purposes of this section: (1) The term "school-age population" means the population 3gg(jflygthrough seventeen. (2) The term "States" includes the fifty States, the District of Columbia, and Puerto Rico. STATE APPLICATIONS

20 USC 3814.

SEC. 564. (a) Any State which desires to receive grants under this chapter shall file an application with the Secretary which— (1) designates the State educational agency as the State agency responsible for the administration and supervision of programs assisted under this chapter; (2) provides for a process of active and continuing consultation with the State educational agency of an advisory committee, appointed by the Governor and determined by the Governor to be broadly representative of the educational interests and the gener^ public in the State, including persons representative of— (A) public and private elementary and secondary schoolchildren; (B) classroom teachers; (C) parents of elementary and secondary schoolchildren; (D) local boards of education; (E) local and regional school administrators (including principals and superintendents);, (F) institutions of higher education; and (G) the State legislature; to advise the State educational agency on the allocation among authorized functions of funds (not to exceed 20 per centum of the amount of the State's £dlotment) reserved for State use under section 565(a), on the formula for the allocation of funds to local educational agencies, and on the planning, development, support, implementation, and evaluation of State programs assisted under this chapter; (3) sets forth the planned allocation of funds reserved for State Post, pp. 472,473, use Under section 565(a) among subchapters A, B, and C of this 475.

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chapter and among the authorized programs and projects which are to be implemented, and the allocation of such mnds required to implement section 586, including administrative costs of carrying out the responsibilities of the State educational agency under this chapter; (4) provides for timel^r public notice and public dissemination of the information provided pursuant to paragraphs (2) and (3); (5) beginning with fiscal year 1984, provides for an annual evaluation of the effectiveness of programs assisted under this chapter, which shall include comments of the advisory committee, and shall be made available to the public; and (6) provides that the State educational agency will keep such Recordkeeping. records and provide such information to the Secretary as may be required for fiscal audit and program evaluation (consistent with the responsibilities of the Secretary under this chapter); and (7) contains assurances that there is compliance with the specific requirements of this chapter. (b) An application filed by the State under subsection (a) shall be for a period not to exceed three fbscal years, and may be amended annually as may be necessary to reflect changes without filing a new application. ALLOCATION TO LOCAL EDUCATIONAL AGENCIES

SEC. 565. (a) From the sum made available each year under section 20 USC 3815. 563, the State educational agency shall distribute not less than 80 per centum to local educational agencies within such State according to the relative enrollments in public and nonpublic schools within the school districts of such agencies, ai^usted, in accordance with criteria approved by the Secretary, to provide higher per pupil allocations to local educational agencies which have the greatest numbers or percentages of children whose education imposes a higher than average cost per child, such as— (1) children from low-income families, (2) children living in economically depressed urbeui and rural areas, and (3) children living in sparsely populated areas. (b) The Secretary shall approve criteria suggested by the State educational agency for adjusting allocations under subsection (a) if such criteria are reasonably calculated to produce an equitable distribution of funds with reference to the factors set forth in subsection (a). (c) From the funds paid to it pursuant to sections 563 and 564 during each fiscal year,-the State educational agency shall distribute to each local educational agency which has submitted an application as required in section 566 the amount of its allocation as determined under subsection (a). LOCAL APPLICATIONS

SEC. 566. (a) A local educational agency may receive its allocation of 20 USC 3816. funds under this chapter for any year in which it has on file with the State educational agency an application which— (1) sets forth the planned allocation of funds among subchapters A, B, and C of this chapter and for the programs rost, pp. 472,473, authorized by such subchapters which it intends to support, ^'^^• including the allocation of such funds required to implement section 586; -194

0—82

32:QL3

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PUBLIC LAW 97-35—AUG. 13, 1981

(2) provides assurances of compliance with provisions of this chapter relating to such programs, including the participation of children enrolled in private, nonprofit schools in accordance with section 586; Recordkeeping. (3) agrees to keep such records, and provide such information to the State educational agency as reasonably may be required for fiscal audit and program evaluation, consistent with the responsibilities of the State agency under this chapter; and (4) in the allocation of funds for programs authorized by this chapter, and in the design, planning, and implementation of such programs, provides for systematic consultation with parents of children attending elementary and secondary schools in the area served by the local agency, with teachers and administrative personnel in such schools, and with other groups as may be deemed appropriate by the local educational agency. (b) An application filed by a local educational agency under subsection (a) shall be for a period not to exceed three fiscal years, may provide for the allocation of funds among programs and purposes authorized by this chapter for a period of three years, and may be amended annually as may be necessary to reflect changes without filing a new application. (c) Each local educational agency shall have complete discretion, subject only to the provisions of this chapter, in determining how funds the agency receives under this section shall be divided among the purposes oi this chapter in accordance with the application submitted under this section. Subchapter A—Basic Skills Development USE OF FUNDS

20 USC 3821.

20 USC 2881. 20 USC 2912.

SEC. 571. Funds allocated for use under this subchapter shall be used by State and local educational agencies to develop and implement a comprehensive and coordinated program designed to improve elementary and secondary school instruction in the basic skills of reading, mathematics, and written and oral communication, as formerly authorized by title II of the Elementary and Secondary Education Act of 1965, relating to basic skills improvement, including the special mathematics program as formerly authorized by section 232 of such title. STATE LEADERSHIP AND SUPPORT SERVICES

Grants and contracts. 20 USC 3822.

SEC. 572. (a) In order to achieve the purposes of this subchapter, State educational agencies may use funds reserved for State programs to make grants to and enter into contracts with local educational agencies, institutions of higher education, and other public and private agencies, organizations, and institutions— (1) to carry out planning, research and development, demonstration projects, training of leadership personnel, short term and regular session teacher training institutes; and (2) for the development of instructional materials, the dissemination of information, and technical assistance to local educational agencies. Each State educational agency may also use such funds for technical assistance and training for State boards of education. (b) State educational agencies may support activities designed to enlist the assistance of parents and volunteers working with schools

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to improve the performance of children in the basic skills. Such activities may include— (1) the development and dissemination of materials that parents may use in the home to improve their children's performance in those skills; and (2) voluntary training activities for parents to encourage and assist them to help their children in developing basic skills; except that such activities conducted in local areas shall be conducted with the approval of and in conjunction with programs of local educational agencies. SCHOOL LEVEL PROGRAMS

SEC. 573. (a) In planning for the utilization of funds it allocates for 20 USC 3823. this chapter (from its allotment under section 565) a local educational agency shall provide for the participation of children enrolled in private elementary and secondary schools (and of teachers in such schools) in accordance with section 586. Such plans shall be developed in conjunction with and involve continuing consultation with teachers and principals in such district. Such planning shall include a systematic strategy for improving basic skills instruction for all children which provides for planning and implementation at the school building level, involving teachers, administrators, and (to the extent practicable) parents, and utilizing all available resources in a comprehensive program. The programs shall include— (1) diagnostic assessment to identify the needs of all children in the school; (2) the establishment of learning goals and objectives for children and for the school; (3) to the extent practicable, pre-service and in-service training and development programs for teachers, administrators, teacher aides and other support personnel, designed to improve instruction in the basic skills; (4) activities designed to enlist the support and participation of parents to aid in the instruction of their children; and (5) procedures for testing students and for evaluation of the effectiveness of programs for maintaining a continuity of effort for individual children. (b) The programs described in subsection (a) may include such areawide or districtwide activities as learning centers accessible to students and parents, demonstration and training programs for parents, and other activities designed to promote more effective instruction in the basic skills. Subchapter B—Educational Improvement and Support Services STATEMENT OF PURPOSE

SEC. 576. It is the purpose of this subchapter to permit State and local educational agencies to use Federal funds (directly, and through grants to or contracts with educational agencies, local educational agencies, institutions of higher education, and other public and private agencies, organizations, and institutions) to carry out selected activities from among the full range of programs and projects formerly authorized under title IV, relating to educational improvement, resources, and support, title V, relating to State leadership, title VI, relating to emergency school aid, of the Elementary and Secondary Education Act of 1965, section 3(a)(1) of the National

20 USC 3831.

20 USC 3081. 20 USC 3141. 20 USC 3i9i.

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 95 STAT. 474 42 USC 1862. 20 USC 1101, ^^^^^

PUBLIC LAW 97-35—AUG. 13, 1981 Science Foundation Act of 1950, relating to precoUege science teacher training, and part A and section 532 of title V of the Higher Education Act of 1965, relating to the Teacher Corps and teacher centers, in accordance with the planned allocation of funds set forth in the applications under sections 564 and 566, in conformity with the other requirements of this chapter. AUTHORIZED ACTIVITIES

20 USC 3832.

SEC. 577. Programs and projects authorized under this subchapter include— (1) the acquisition and utilization— (A) of school library resources, textbooks, and other printed and published instructional materials for the use of children and teachers in public and private elementary and secondary schools which shall be used for instructional purposes only, and (B) of instructional equipment and materials suitable for use in providing education in academic subjects for use by children and teachers in elementary and secondary schools which shall be used for instructional purposes only, which take into account the needs of children in both public and private schools based upon periodic consultation with teachers, librarians, media specialists, and private school officials; (2) the development of programs designed to improve local educational practices in elementary and secondary schools, and particularly activities desired to address educational problems such as the education of cmldren with special needs (educationally deprived children, gifted and talented children, including children in private schools); (3) programs designed to assist local educational agencies, upon their request, to more effectively address educational problems caused by the isolation or concentration of minority group children m certain schools if such assistance is not conditioned upon any requirement that a local educational agency which assigns students to schools on the basis of geogpraphic attendance areas adopt any other method of student assignment, and that such assistance is not made available for the transportation of students or teachers or for the acquisition of equipment for such transportation; (4) comprehensive guidance, counseling, and testing programs in elementary and secondary schools and State and local support services necessary for the effective implementation and evmuation of such programs (including those designed to help prepare students for employment); (5) programs and projects to improve the planning, manaj^ement and implementation of educational programs, including fiscal management, by both State and local educational agencies, and the cooperation of such agencies with other public agencies; (6) programs and projects to assist in teacher training and inservice staff development, particularly to better prepare both new and in-service ^rsonnel to deal with contemporary teaching and learning requirements and to provide assistance in the teaching and learning of educationally deprived students; and (7) programs and projects to assist local educational agencies to meet the needs of children in schools undergoing desegregation and to assist such agencies to develop and implement plans for desegregation in the schools of such agencies.

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Subchapter C—Special Projects STATEMENT OF PURPOSE

SEC. 581. It is the purpose of this subchapter to permit State and local educational agencies to use Federal funds (directly and through grants to or contracts with educational agencies, local educational agencies, institutions of higher education, and other public and private g^encies, organizations, and institutions) to carry out selected activities from among the full range of programs and projects formerly authorized under title III, relating to special projects, title VIII, relating to community schools, and title IX (except part C), relating to gifted and talented children, educational proficiency standards, safe schools program, and ethnic heritage program, of the Elementary and Secondary Education Act of 1965, the Career Education Incentive Act, and part B of title V of the Economic Opportunity Act of 1964, relating to Follow Through programs, in accordance with the planned allocation of funds set forth in the applications under sections 564 and 566, in conformity with the other requirements of this chapter.

20 USC 3841.

20 USC 2941, ^o^g 42 USC 2929.
 * o^us? 2601

AUTHORIZED ACTIVITIES

SEC. 582. Programs and projects authorized under this subchapter 20 USC 3842. include— (1) special projects (as may be determined to be desirable by the State or local educational agencies) in such areas as— (A) preparation of students to use metric weights and measurements when such use is needed; (B) emphasis on the arts as an integral part of the curriculum; (C)(i) in-school partnership programs in which the parents of school-age children participate to enhance the education and personal development of the children, previously authorized by part B of the Headstart-Follow Through Act; 42 USC 2929. (ii) preschool partnership programs in which the schools work with parents of preschool children in cooperation with programs funded under the Headstart-Follow Through Act; 42 USC 2921. (D) consumer education; (E) preparation for employment, the relationship between basic academic skill development and work experience, and coordination with youth employment programs carried out under the Comprehensive Employment and Training Act; (F) career education previously authorized by the Career Education Incentive Act; (G) environmental education, health education, education about legal institutions and the American system of law and its underlying principles, and studies on population and the effects of population changes; (H) academic and vocational education of juvenile delinquents, youth offenders, and adult criminal offenders; and (I) programs to introduce disadvantaged secondary school students to the possibilities of careers in the biomedical and medical sciences, and to encourage, motivate, and assist them in the pursuit of such careers; (2) the use of public education facilities as community centers operated by a local education agency in conjunction with other local governmental agencies and community organizations and groups to provide educational, recreational, health care, cul-

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 95 STAT. 476

Ante, p. 472.

42 USC 2000c.

PUBLIC LAW 97-35—AUG. 13, 1981 tural, and other related community and human services for the community served in accordance with the needs, interests, and concerns of the community and the agreement and conditions of the governing board of the local educational agency; and (3) additional programs, including— (A) special programs to identify, encourage, and meet the special educational needs of children who give evidence of high performance capability in areas such as intellectual, creative, artistic, leadership capacity, or specific academic fields, and who require services or activities not ordinarily provided by the school in order to fully develop such capabilities; (B) establishment of educational proficienQr standards for reading, writing, mathematics, or other subjects, the administration of examinations to measure the proficiency of students, and implementation of programs (coordinated with those Under subchapter A of this chapter) designed to assist students in achieving levels of proficiency compatible with established standards; (C) programs designed to promote safety in the schools and to reduce the incidence of crime and vanaalism in the school environment; (D) planning, developing, and implementing ethnic heritage studies programs to provide all persons with an opportunity to learn about and appreciate the unique contributions to the American national heritage made by the various ethnic groups, and to enable students better to understand their own cultural heritage as well as the cultural heritage of others; and (E) programs involving training and advisory services under title IV of the Civil Rights Act of 1964. Subchapter D—Secretary's Discretionary Funds DISCRETIONARY PROGRAM AUTHORIZED

20 USC 3851.

20 USC 3041.

SEC. 583. (a) From the sums reserved by the Secretary pursuant to the second sentence of section 563(a) the Secretary is authorized to cany out directly or through grants to or contracts with State and local educational agencies, institutions of higher education, and other public and private agencies, organizations, and institutions, programs and projects which— (1) provide a national source for gathering and disseminating information on the effectiveness of programs designed to meet the special educational needs of educationally deprived children, and others served by this subtitle, and for assessing the needs of such individuals, including programs and projects formerly authorized by section 376 of the Elementary and Secondary Education Act of 1965 and programs and projects formerly funded under the "National Dimision Network" program; (2) carry out research and demonstrations related to the purposes of this subtitle; (3) are designed to improve the training of teachers and other instructional personnel needed to carry out the purposes of this subtitle; or (4) are designed to assist State and local educational agencies in the implementation of programs under this subtitle.

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Page:United States Statutes at Large Volume 95.djvu/503

 PUBLIC LAW 97-35—AUG. 13, 1981 (b) From the funds reserved for the purposes of this section, the Secretary shall first fund— (1) the Inexpensive Book Distribution Program (as carried out through "Reading is Fundamental") as formerly authorized by part C of title II of the Elementary and Secondary Education Act of 1965, (2) the programs of national significance in the "Arts in Education Program as formerly authorized by part C of title III ofsuchAct, and (3) programs in alcohol and drug abuse education as formerly authorized by the Alcohol and Drug Abuse Education Act, at least in amounts necessary to sustain the activities described in this sentence at the level of operations during fiscal year 1981, and then utilize the remainder of such funds for the other authorized activities described in subsection (a).

95 STAT. 477

20 USC 2911.

21 USC 1001 note.

Subchapter E—General Provisions MAINTENANCE OF EFFORT; FEDERAL FUNDS SUPPLEMENTARY

SEC. 585. (a)(1) Except as provided in paragraph (2), a State is entitled to receive its full allocation of funds under this chapter for any fiscal year if the Secretary finds that either the combined fiscal effort per student or the aggregate expenditures within the State with respect to the provision of free public education for the preceding fiscal year was not less than 90 per centum of such combined fiscal effort or aggregate expenditures for the second preceding fiscal year. (2) The Secretary shall reduce the amount of the allocation of funds under this chapter in any fiscal year in the exact proportion to which the State fails to meet the requirements of paragraph (1) by falling below 90 per centum of both the fiscal effort per student and aggregate expenditures (using the measure most favorable to the State), and no such lesser amount shall be used for computing the effort required under paragraph (1) for subsequent years. (3) The Secretary may waive, for one fiscal year only, the requirements of this subsection if he determines that such a waiver would be equitable due to exceptional or uncontrollable circumstances such as a natural disaster or a precipitous and unforeseen decline in the financial resources of the State. (b) A State or local educational agency may use and allocate funds received under this chapter only so as to supplement and, to the extent practical, increase the level of funds that would, in the absence of Federal funds made available under this chapter, be made available from non-Federal sources, and in no case may such funds be used so as to supplant funds from non-Federal sources. (c) The Secretary is specifically authorized to issue regulations to enforce the provisions of this section.

20 USC 3861.

Waiver of requirements.

Regulations.

PARTICIPATION OF CHILDREN ENROLLED IN PRIVATE SCHOOLS

SEC. 586. (a)(1) To the extent consistent with the number of children 20 USC 3862. in the school district of a local educational agency which is eligible to receive funds under this chapter or which serves the area in which a program or project assisted under this chapter is located who are enrolled in private nonprofit elementary and secondary schools, or with respect to instructional or personnel training programs funded by the State educational agency from funds reserved for State use

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Page:United States Statutes at Large Volume 95.djvu/504

 95 STAT. 478

Contract authority.

Waiver of requirements.

PUBLIC LAW 97-35—AUG. 13, 1981 under section 565, such agency after consultation with appropriate private school officials, shall provide for the benefit of such children in such schools secular, neutral, and nonideological services, materials, and equipment including the participation of the teachers of such children (and other educational personnel serving such children) in training programs, and the repair, minor remodeling, or construction of public facilities as may be necessary for their provision (consistent with subsection (c) of this section), or, if such service, materials, and equipment are not feasible or necessary in one or more such private schools as determined by the local educational agency after consultation with the appropriate private school officials, shall provide such other arrangements as will assure equitable participation of such children in the purposes and benefits of this chapter. (2) If no program or project is carried out under subsection (a)(1) of t;his section in the school district of a local educational agency, the State educational agency shall make arrangements, such as through contracts with nonprofit agencies or organizations, under which children in private schools in that district are provided with services and materials to the extent that would have occurred if the local educational agency had received funds under this chapter. (3) The requirements of this section relating to the participation of children, teachers, and other personnel serving such children shall apply to programs and projects carried out under this chapter by a State or local educational agency, whether directly or through grants to or contracts with other public or private agencies, institutions, or organizations. (b) Expenditures for programs pursuant to subsection (a) shall be equal (consistent with the number of children to be served) to expenditures for programs under this chapter for children enrolled in the public schools of the local educational agency, taking into account the needs of the individual children and other factors which relate to such expenditures, and when funds available to a local educational agency under this chapter are used to concentrate programs or projects on a particular group, attendance area, or grade or age level, children enrolled in private schools who are included within the group, attendance area, or grade or age level selected for such concentration shall, after consultation with the appropriate private school officials, be assured equitable participation in the purposes and benefits of such programs or projects. (c)(1) The control of funds provided under this chapter and title to materials, equipment, and property repaired, remodeled, or constructed therewith shall be in a public agency for the uses and purposes provided in this chapter, and a public agency shall administer such funds and property. (2) The provision of services pursuant to this section shall be provided by employees of a public agency or through contract by such public agency with a person, an association, agency, or corporation who or which, in the provision of such services, is independent of such private school and of any religious organizations, and such employment or contract shall be under the control and supervision of such public agency, and the funds provided under this chapter shall not be commingled with State or local funds. (d) If by reason of any provision of law a State or local educational agency is prohibited from providing for the participation in programs of children enrolled in private elementary and secondary schools, as required by this section, the Secretary shall waive such requirements and shall arrange for the provision of services to such children

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Page:United States Statutes at Large Volume 95.djvu/505

 PUBLIC LAW 97-35—AUG. 13, 1981 through arrangements which shall be subject to the requirements of this section. (e)(1) If the Secretary determines that a State or a local educational agency has substantially failed or is unwilling to provide for the participation on an equitable basis of children enrolled in private elementary and secondary schools as required by this section, he may waive such requiremente and shall arrange for the provision of services to such children through arrangements which shall be subject to the requirements of thte section. (2) Pending final resolution of any investigation or complaint that could result in a determination under this subsection or subsection (d), the Secretary may withhold from the allocation of the affected State or local educational agency the amount he estimated would be necessary to pay the cost of those services. (f) Any determination by the Secretary under this section shall continue in effect until the Secretary determines that there will no longer be any failure or inability on the part of the State or local educational agency to meet the requirements of subsections (a) and (b). (g) When the Secretary arranges for services pursuant to this section, he shall, after consultation with the appropriate public and private school officials, pay the cost of such services, including the administrative costs of arranging for those services, from the appropriate allotment of the State under this chapter. (h)(1) The Secretary shall not take any final action under this section until the State educational agency and the local educational agency affected by such action have had an opportunity, for at least forty-five days after receiving written notice thereof, to submit written objections and to appear before the Secretary or his designee to show cause why that action should not be taken. (2) If a State or local educational agency is dissatisfied with the Secretary's final action after a proceeding under paragraph (1) of this subsection, it may within sixty days after notice of such action, file with the United States court of appeals for the circuit in which such State is located a petition for review of that action. A copy of the petition shall be forthwith transmitted by the clerk of the court to the Secretary. The Secretary thereupon shall file in the court the record of the proceedings on which he based this action, as provided in section 2112 of title 28, United States Code. (3) The findings of fact by the Secretary, if supported by substantial evidence, shall be conclusive; but the court, for good cause shown, may remand the case to the Secretary to take further evidence and the Secretary may thereupon make new or modified findings of fact and may modify his previous action, and shall file in the court the record of the further proceedings. Such new or modified findings of fact shall likewise be conclusive if supported by substantial evidence. (4) Upon the filing of such petition, the court shall have jurisdiction to affirm the action of the Secretary or to set it aside, in whole or in part. The judgment of the court shall be subject to review by the Supreme Court of the United States upon certiorari or certification as provided in section 1254 of title 28, United States Code. (i) Any bypass determination by the Secretary under titles II through VI and VIII and IX of the Elementary and Secondary Education Act of 1965 prior to the effective date of this chapter shall remain in effect to the extent consistent with the purposes of this chapter.

95 STAT. 479

Waiver of requirements.

20 USC 2881, ^^^^' ^^81, 33ii.

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Page:United States Statutes at Large Volume 95.djvu/506

 95 STAT. 480

PUBLIC LAW 97-35—AUG. 13, 1981 REPEALS

20 USC 3863. 20 USC 2881, 2941, 3081, 3141, 3191, 3281, 3311, 3341. 20 USC 1101, 1119a. 21 USC 1001 note. 20 USC 2601 note. Post, p. 508.

SEC. 587. (a) Effective October 1, 1982, the provisions of— (1) titles II, III, IV, V, VI, VIII, and IX (except part C) of the Elementary and Secondary Education Act of 1965; (2) part A and section 532 of title V of the Higher Education Act of 1965; (3) the Alcohol and Drug Abuse Education Act; and (4) the Career Education Incentive Act; are repealed. (b) Effective October 1, 1984, subchapter C of chapter 8 of subtitle A of title VI of this Act, relating to Follow-Through programs is repealed. CHAPTER 3—GENERAL PROVISIONS FEDERAL REGULATIONS

20 USC 3871.

SEC. 591. (a) The Secretary is authorized to issue regulations— (1) relating to the discharge of duties specifically assigned to the Secretary under this subtitle; (2) relating to proper fiscal accounting for funds appropriated under this subtitle and the method of making payments authorized under this subtitle; and (3) which are deemed necessary to reasonably insure that there is compliance with the specific requirements and assurances required by this subtitle. Qo) In all other matters relating to the details of planning, developing, implementing, and evaluating programs and projects by State and local educational agencies the Secretary shall not issue regulations, but may consult with appropriate State, local, and private educational agencies and, upon request, provide technical assistance, information, and suggested guidelines designed to promote the development and implementation of effective instructional programs and to otherwise assist in carrying out the purposes of this subtitle. (c) Regulations issued pursuant to this subtitle shall not have the standing of a Federal statute for the purposes of judicial review. WITHHOLDING OF PAYMENTS

20 USC 3872.

SEC. 592. (a) Whenever the Secretary after reasonable notice to any State educational agency and an opportunity for a hearing on the record, finds that there has been a failure to comply substantially with any assurances required to be given or conditions required to be met under this subtitle the Secretary shall notify such agency of these findings and that beginning sixty days after the date of such notification, further payments will not be made to the State under this subtitle, or affected chapter thereof (or, in his discretion, that the State educational agency shall reduce or terminate further payments under the subtitle or affected chapter thereof, to specified local educational agencies or State agencies affected by the failure) until he is satisfied that there is no longer any such failure to comply. Until he is so satisfied, (1) no further payments shall be made to the State under the subtitle or affected chapter thereof, or (2) payments by the State educational agency under the subtitle or affected chapter thereof shall be limited to local educational agencies and State agencies not affected by the failure, or (3) payments to particular local educational agencies shall be reduced, as the case may be.

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Page:United States Statutes at Large Volume 95.djvu/507

 PUBLIC LAW 97-35—AUG. 13, 1981

95 STAT. 481

(b) Upon submission to a State of a notice under subsection (a) that the Secretary is withholding pa3mients, the Secretary shall take such action as may be necessary to bring his action to the attention of the public within the State. JUDICIAL REVIEW

SEC. 593. (a) If any State is dissatisfied with the Secretary's action 20 USC 3873. under section 592(a), such State may, within sixty days after notice of such action, file with the United States court of appeals for the circuit in which such State is located a petition for review of that action. A copy of the petition shall be forthwith transmitted by the clerk of the court to the Secretary. The filing of such petition shall act to suspend any withholding of funds by the Secretary pending the judgment of the court and prior to a final action on any review of such judgment. The Secretary thereupon shall file in the court the record of the proceedings on which he based his action, as provided in section 2112 of title 28, United States Code. (b) A State educational agency shall be presumed to have complied with this subtitle, but the findings of fact by the Secretary, if supported by the weight of evidence, may overcome such presumption. The court may remand the case to the Secretary to take further evidence, and the Secretary may thereupon make new or modified findings of fact and may modify his previous action, and shall file in the court the record of the further proceedings. (c) Upon the filing of such petition, the court shall have jurisdiction to affirm the action of the Secretary or to set it aside, in whole or in part. The judgment of the court shall be subject to review by the Supreme Court of the United States upon certiorari or certification as provided in section 1254 of title 28, United States Code. AVAILABILITY OF APPROPRIATIONS

SEC. 594. Notwithstanding any other provision of law, unless 20 USC 3874. expressly in limitation of this section, funds appropriated in any fiscal year to carry out activities under this subtitle shall become available for obligation on July 1 of such fiscal year and shall remain available for obligation until the end of the succeeding fiscal year. DEFINITIONS

SEC. 595. (a) Except as otherwise provided herein as used in this 20 USC 3875. subtitle— (1) the term "State" means a State, Puerto Rico, Guam, the District of Columbia, American Samoa, the Virgin Islands, the Northern Mariana Islands, or the Trust Territory of the Pacific Islands; (2) the term "Secretary" means the Secretary of Education; (3) the term "State educational agency" means the officer or agency primarily responsible for the State supervision of public elementary and secondary schools; (4) the term "local educational agency" means a public board of education or other public authority legally constituted within a State for either administrative control or direction of, or to perform a service function for, public elementary or secondary schools in a city, county, township, school district, or other political subdivision of a State, or such combination of school districts or counties as are recognized in a State as an administrative agency for its public elementary or secondary schools. Such term includes any other public institution or agency having

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Page:United States Statutes at Large Volume 95.djvu/508

 95 STAT. 482

20 USC 2701.

PUBLIC LAW 97-35—AUG. 13, 1981 administrative control and direction of a public elementary or secondary school; (5) the term "parent" includes a legal guardian or other person standing in loco parentis; (6) the term "free public education" means education which is provided at public expense, under public supervision and direction, and without tuition charge, and which is provided as elementary or secondary school education in the applicable State, except that such term does not include any education provided beyond grade twelve; (7) the term "elementary school" means a day or residential school which provides elementary education, as determined under State law, and the term "secondary school" means a day or residential school which provides secondary education, as determined under State law, except that it does not include any education provided beyond grade twelve; (8) the term "construction" includes the preparation of drawings and specifications for school facilities; erecting, building, acquiring, altering, remodeling, improving, or e x t e n ^ g school facilities; and the inspection and supervision of the construction of school facilities; (9) the term "equipment" includes machinery, utilities, and building equipment and any necessary enclosure or structures to house them, and includes all other items necessary for the functioning of a particular facility as a facility for the provision of educational services, including items such as instructional equipment and necessary furniture, printed, published, and audio-visual instructional materials, and books, periodicals, documents, and other related materials; and (10) the term "school facilities" means classrooms and related facilities (including initial equipment) for free public education and interests in land (including site, grading, and improvements) on which such facilities are constructed, except that such term does not include those gymnasiums and similar facilities intended primarily for exhibitions for which admission is to be charged to the general public. (b) Any term used in provisions referenced by section 554 and not defined in this section shall have the same meaning as that term was given in title I of the Elementary and Secondary Education Act of 1965 in effect prior to October 1, 1981. APPLICATION OF OTHER LAWS

20 USC 3876. 20 USC 1232c, I232d, I232e.

20 USC 1225.

SEC. 596. (a) Sections 434, 435, and 436 of the General Education Provisions Act (relating to "State Educational Agency Monitoring ^j^^ Agency Application") shall not apply to programs authorized under this subtitle except to the extent that they relate to fiscal control and fund accounting procedures (including the title to property acquired with Federal funds), and shall not be construed to authorize the Secretary to require any reports or take any actions not specifically authorized by this subtitle. (b) Section 412 of the General Education Provisions Act shall apply to any funds appropriated for any fiscal year pursuant to this subtitle.

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Page:United States Statutes at Large Volume 95.djvu/509

 PUBLIC LAW 97-35—AUG. 13, 1981

95 STAT. 483

TITLE VI—HUMAN SERVICES PROGRAMS Subtitle A—Authorizations Savings for Fiscal Years 1982, 1983, and 1984 CHAPTER 1—GENERAL PROVISIONS EFFECT ON OTHER LAWS

SEC. 601. (a) Any provision of law which is not consistent with the provisions of this subtitle hereby is superseded and shall have only such force and effect during each of the fiscal years 1982, 1983, and 1984 which is consistent with this subtitle. (b) Notwithstanding any authorization of appropriations for fiscal year 1982, 1983, or 1984 contained in any provision of law which is specified in this subtitle, no funds are authorized to be appropriated in excess of the limitations imposed upon appropriations by the provisions of this subtitle.

42 USC 9801 note.

CHAPTER 2—EDUCATION OF THE HANDICAPPED PROGRAMS EDUCATION OF THE HANDICAPPED ACT

SEC. 602. (a)(1) There is authorized to be appropriated to carry out part B of the Education of the Handicapped Act, other than sections 618 and 619, $969,850,000 for fiscal year 1982, and $1,017,900,000 for each of thefiscalyears 1983 and 1984. (2) There is authorized to be appropriated to carry out section 618 of such Act $2,300,000 for each of the fiscal years 1982 and 1983. (3) There is authorized to be appropriated to carry out section 619 of such Act $25,000,000 for each of the fiscal years 1982 and 1983. (b)(1) There is authorized to be appropriated to carry out section 621 of the Education of the Handicapped Act (relating to regional resource centers) $9,800,000 for each of the fiscal years 1982 and 1983. (2) There is authorized to be appropriated to carry out section 622 of such Act $16,000,000 for each of the fiscal years 1982 and 1983. (3) There is authorized to be appropriated to carry out section 623 of such Act $20,000,000 for each of the fiscal years 1982 and 1983. (4) There is authorized to be appropriated to carry out sections 621 and 624 of such Act (relating to projects for severely handicapped children) $5,000,000 for each of the fiscal years 1982 and 1983. (5) There is authorized to be appropriated to carry out section 625 of such Act $4,000,000 for each of the fiscal years 1982 and 1983. (6) There is authorized to be appropriated to carry out sections 631, 632, and 634 of such Act $58,000,000 for each of the fiscal years 1982 and 1983. (7) There is authorized to be appropriated to carry out section 633 of such Act $1,000,000 for each of the fiscal years 1982 and 1983. (8) There is authorized to be appropriated to carry out part E of such Act $20,000,000 for each of the fiscal years 1982 and 1983. (9) There is authorized to be appropriated to carry out part F of such Act $19,000,000 for each of the fiscal years 1982 and 1983.

20 USC note. 20 USC 1419. 20 USC note. 20 USC note.

1411 1418, 1418 1419

20 USC 1421 note. 20 USC 1422 note. 20 USC 1423 note. 20 USC 1421 note. 20 USC 1424a note. 20 USC 1431 note. 20 USC 1433 note. 20 USC 1444 note. 20 USC 1454 note.

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Page:United States Statutes at Large Volume 95.djvu/510

 95 STAT. 484

PUBLIC LAW 97-35—AUG. 13, 1981 CHAPTER 8—VOCATIONAL REHABILITATION PROGRAMS GENERAL AUTHORIZATION UNDER REHABIUTATION ACT OF 1973

SEC. 603. There is authorized to be appropriated to carry out the 29 USC 701 note. Rehabilitation Act of 1973 $1,009,260,000 for fiscal year 1982, and $1,054,160,000 for fiscal year 1983. SPECIFIC SPENDING LIMITS UNDER REHABILITATION ACT OF 1973

29 USC 701 note. 29 USC 711. 29 USC 713.

29 USC 714.

29 USC 730. 29 USC 740.

29 USC 750. 29 USC 732.

29 USC 760. 29 USC 771.

29 USC 772.

29 USC 774.

SEC. 604. (a) Of the amounts authorized to be appropriated in section 603, not to exceed $250,000 shall be available, for each of the fiscal years 1982 and 1983, to carry out section 12 of the Rehabilitation Act of 1973. (b) Notwithstanding the authorization of appropriations made in section 603, no funds are authorized to be appropriated to carry out section 14 of the Rehabilitation Act of 1973 for fiscal year 1982 or 1983. (c) Of the amounts authorized to be appropriated in section 603, such sums as may be necessary shall be available, for each of the fiscal years 1982 and 1983, to carry out section 15 of the Rehabilitation Act of 1973. (d) Of the amounts authorized to be appropriated in section 603, not to exceed $899,000,000 for fiscal year 1982, and not to exceed $943,900,000 for fiscal year 1983, shall be available for the purpose of making grants to States pursuant to State entitlements under part B of title I of the Rehabilitation Act of 1973. (e) Notwithstanding the authorization of appropriations made in section 603, no funds are authorized to be appropriated to carry out section 120(a) of the Rehabilitation Act of 1973 for fiscal year 1982 or 1983. (f) Of the amounts authorized to be appropriated in section 603, not to exceed $650,000 shall be available, for each of the fiscal years 1982 and 1983, for the purpose of making grants to Indian tribes under part D of title I of the Rehabilitation Act of 1973. (g)(1) Of the amounts authorized to be appropriated in section 603, not to exceed $3,500,000 shall be available, for each of the fiscal years 1982 and 1983, to carry out section 112 of the Rehabilitation Act of 1973. (2) The requirement for the setting aside of funds established in the first sentence of section 112(a) of such Act shall not have any force or effect for each of the fiscal years 1982 and 1983. (h) Of the amounts authorized to be appropriated in section 603, not to exceed $35,000,000 shall be available, for each of the fiscal years 1982 and 1983, to carry out title II of the Rehabilitation Act of 1973. (i) Notwithstanding the authorization of appropriations made in section 603, no funds are authorized to be appropriated to carry out section 301 of the Rehabilitation Act of 1973 for fiscal year 1982 or 1983. (j) Notwithstanding the authorization of appropriations made in section 603, no funds are authorized to be appropriated to carry out section 302 of the Rehabilitation Act of 1973 for fiscal year 1982 or 1983. (k) Of the amounts authorized to be appropriated in section 603, not to exceed $25,500,000 shall be available, for each of the fiscal years 1982 and 1983, to carry out section 304 of the Rehabilitation Act of 1973.

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Page:United States Statutes at Large Volume 95.djvu/511

 PUBLIC LAW 97-35—AUG. 13, 1981 (1) Notwithstanding the authorization of appropriations made in section 603, no funds are authorized to be appropriated to carry out section 305 of the Rehabilitation Act of 1973 for fiscal year 1982 or 1983. (m)(1) Of the amounts authorized to be appropriated in section 603, not to exceed $12,210,000 shall be available, for each of the fiscal years 1982 and 1983, to carry out sections 310,311,312,314, and 315 of the Rehabilitation Act of 1973. (2) The requirement for the setting aside of funds established in the first sentence of section 310(b) of such Act shall not have any force or effect for each of the fiscal years 1982 and 1983. (n) Of the amounts authorized to be appropriated in section 603, not to exceed $2,000,000 shall be available, for each of the fiscal years 1982 and 1983, to carry out section 316 of the Rehabilitation Act of 1973. (o) Of the amounts authorized to be appropriated in section 603, not to exceed $3,500,000 shall be available, for each of the fiscal years 1982 and 1983, to carry out section 313 of the Rehabilitation Act of 1973. (p) Of the amounts authorized to be appropriated in section 603, not to exceed $256,000 shall be available, for each of the fiscal years 1982 and 1983, to carry out title IV of the Rehabilitation Act of 1973. (q) Of the amounts authorized to be appropriated in section 603, such sums as may be necessary shall be available, for each of the fiscal years 1982 and 1983, to carry out section 502 of the Rehabilitation Act of 1973. (r) Notwithstanding the authorization of appropriations made in section 603, no funds are authorized to be appropriated to carry out section 506 of the Rehabilitation Act of 1973 for fiscal year 1982 or 1983. (s) Notwithstanding the authorization of appropriations made in section 603, no funds are authorized to be appropriated to carry out part A of title VI of the Rehabilitation Act of 1973 for fiscal year 1982 or 1983. (t) Of the amounts authorized to be appropriated in section 603, not to exceed $8,000,000 shall be available, for each of the fiscal years 1982 and 1983, to carry out part B of title VI of the Rehabilitation Act of 1973. (u) Notwithstanding the authorization of appropriations made in section 603, no funds are authorized to be appropriated to carry out part A, C, or D of title VII of the Rehabilitation Act of 1973 for fiscal year 1982 or 1983. (v) Of the amounts authorized to be appropriated in section 603, not to exceed $19,400,000 shall be available, for each of the fiscal years 1982 and 1983, to carry out part B of title VII of the Rehabilitation Act of 1973.

95 STAT. 485

29 USC 775.

29 USC 777, JJ Ja, 777b, 777d, ""^®

29 USC 777f.

29 USC 777c. 29 USC 780.

29 USC 792. 29 USC 794b.

29 USC 795.

29USe795g. 29 USC 796,796f, "^^^g.

29USe796e.

CHAPTER 4—OTHER HANDICAPPED PROGRAMS AND SERVICES AMERICAN PRINTING HOUSE FOR THE BUND; GALLAUDET COLLEGE; KENDALL SCHOOL; MODEL SECONDARY SCHOOL FOR THE DEAF; NATIONAL TECHNICAL INSTITUTE FOR THE DEAF ACT

SEC. 605. (a) The total amount of appropriations to carry out the Act of March 3, 1979 (20 Stat. 468), relating to the American Printing 20 USC lOi note. House for the Blind, shall not exceed $5,000,000 for each of the fiscal years 1982, 1983, and 1984.

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Page:United States Statutes at Large Volume 95.djvu/512

 95 STAT. 486

20 USC 681 note.

PUBLIC LAW 97-35—AUG. 13, 1981 (b) The total amount of appropriations to carry out the Act of June 18, 1954 (68 Stat. 265), relating to Gallaudet College, shall not exceed $52,000,000 for each of the fiscal years 1982, 1983, and 1984. Amounts appropriated pursuant to this subsection also shall be available for the administration of the Kendall Demonstration Elementary School and the Model Secondary School for the Deaf. (c) The total amount of appropriations to carry out the National Technical Institute for the Deaf Act shall not exceed $26,300,000 for each of the fiscal years 1982, 1983, and 1984. CHAPTER 5—OLDER AMERICAN PROGRAMS OLDER AMERICANS ACT OF 1965

42 USC 3001 note. 42 USC 3056. 42 USC 3056f note.

"Eligible individual." 42 USC 3056e. "Part-time employment position. 42 USC 3020c.

SEC. 606. (a) There is authorized to be appropriated to carry out the Older Americans Act of 1965 (other than title V of such Act) $715,000,000 for fiscal year 1982 and $793,312,000 for fiscal year 1983. (b)(1) There is authorized to be appropriated to carry out title V of the Older Americans Act of 1965— (A) $277,100,000 for fiscal year 1982 and $293,726,000 for fiscal year 1983; and (B) such additional sums as may be necessary for each such fiscal year to enable the Secretary of Labor, through the operation of older American community service employment programs under such title, to provide for at least 54,200 part-time employment positions for eligible individuals. (2) For purposes of this subsection: (A) The term "eligible individual" has the meaning given it in section 507(2) of the Older Americans Act of 1965. (B) The term "part-time employment position" means an employment position with a workweek of at least 20 hours. (c) Section 213 of the Older Americans Act of 1965 is amended by striking out ", where such organization demonstrates clear superiority with respect to the quality of services covered by such contract". CHAPTER 6-DOMESTIC VOLUNTEER SERVICE PROGRAMS AUTHORIZATIONS UNDER DOMESTIC VOLUNTEER SERVICE ACT OF 1973

42 USC 5081.

SEC. 607. (a) Section 501 of the Domestic Volunteer Service Act of 1973 is amended to read as follows: NATIONAL V O L U N T E E R A N T I P O V E R T Y PROGRAMS

42 USC 4951.

42 USC 5082.

"SEC. 501. There is authorized to be appropriated to carry out title I of this Act $25,763,000 for fiscal year 1982 and $15,391,000 for fiscal year 1983. Of the amounts appropriated under this section, not less than $16,000,000 shall first be available for carrying out part A of title I for fiscal year 1982, and not less than $8,000,000 shall first be available for carrying out part A of title I for fiscal year 1983.". (b)(1) Section 502(a) of the Domestic Volunteer Service Act of 1973 is amended to read as follows: "SEC. 502. (a) There is authorized to be appropriated $28,691,000 for fiscal year 1982 and $30,412,000 for fiscal year 1983, for the purpose of carrying out programs under part A of title II of this Act.". (2) Section 502(b) of such Act is amended to read as follows:

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Page:United States Statutes at Large Volume 95.djvu/513

 PUBLIC LAW 97-35—AUG. 13, 1981 "(b) There is authorized to be appropriated $49,670,000 for fiscal year 1982 and $52,650,000 for fiscal year 1983, for the purpose of carrying out programs under part B of title II of this Act.". (3) Section 502 of such Act is amended by adding at the end thereof the following new subsection: "(c) There is authorized to be appropriated $16,610,000 for fiscal year 1982 and $17,607,000 for fiscal year 1983, for the purpose of carrying out part C of title II of this Act.". (c) Section 504 of the Domestic Volunteer Service Act of 1973 is amended to read as follows:

95 STAT. 487

^2 USC son. 42 USC 5082.

42 USC 5021. 42 USC 5084.

"ADMINISTRATION AND COORDINATION

"SEC. 504. There is authorized to be appropriated for the administration of this Act, as authorized in title IV of this Act, $30,091,000 for 42 USC 504i. fiscal year 1982 and $29,348,000 for fiscal year 1983.". AMENDMENTS TO DOMESTIC VOLUNTEER SERVICE ACT OF 1973

SEC. 608; (a) Section 114(a) of the Domestic Volunteer Service Act of Grants and 1973 is amended to read as follows: 4^^*4974 "SEC. 114. (a) The Director is authorized to make grants and contracts for projects and programs which encourage and enable students in secondary, secondary vocational, and post-secondary schools to participate in service-learning programs on an in-school or out-of-school basis in assignments of a character and on such terms and conditions as are described in subsections (a) and (c) of section 103.". (b) Section 211 of the Domestic Volunteer Service Act of 1973 is 42 USC 5011. amended— (1) by striking out subsection (b); and (2) by redesignating subsections (c), (d), (e), and (f) as subsections (b), (c), (d), and (e), respectively. (c) Title II of the Domestic Volunteer Service Act of 1973 is amended— (1) by redesignating part C as part D; and (2) by inserting after section 212 the following new part: "PART C—SENIOR

CoMPANiONS PROGRAM

"GRANTS AND CONTRACTS FOR THE PROGRAM

"SEC. 213. (a) The Director is authorized to make grants to or 42 USC 5013. contracts with public and nonprofit private agencies and organizations to pay part or all of the cost of development and operation of projects (including direct payments to individuals serving under this part in the same manner as provided in section 211(a)) designed for the purpose of providing opportunities for low-income persons aged 60 or over to serve as 'senior companions' to persons with exceptional needs. Senior companions may provide services designed to help older persons requiring long-term care, including services to persons receiving home health care, nursing care, home-delivered meals or other nutrition services; services designed to help persons deinstitutionalized from mental hospitals, nursing homes, and other institutions; and services designed to assist persons having developmental disabilities and other special needs for companionship.

89-194 0—82

33: QL3

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Page:United States Statutes at Large Volume 95.djvu/514

 95 STAT. 488 42 USC 5011.

PUBLIC LAW 97-35—AUG. 13, 1981 "(b) The provisions of section 211(d) and section 211(e) and such other provisions of part B as the Director determines to be necessary shall apply to the provisions of this part.". (d) The heading of part B of the Domestic Volunteer Service Act of 1973 is amended to read as follows: "PART B—FOSTER GRANDPARENT PROGRAM".

(e)(1) The item relating to part B of title II in the table of contents of the Domestic Volunteer Service Act of 1973 is amended to read as follows: "PART B—FOSTER GRANDPARENT PROGRAM".

(2) The table of contents of such Act is amended by inserting after the item relating to part B the following new items: "PART C—SENIOR (COMPANIONS PROGRAM

"Sec. 213. Grants and contracts for the program.".

42 USC 4973.

42 USC 5021.

42 USC 5057.

(3) The item relating to part C of title 11 in the table of contents of such Act is amended by striking out "PART C " and inserting in lieu thereof "PART D". (f)(1) Section 113(c)(2) of the Domestic Volunteer Service Act of 1973 is amended by striking out "Secretary of Health, Education, and Welfare" and inserting in lieu thereof "Secretary of Health and Human Services". (2) Section 221 of such Act is amended— (A) by striking out "the Community Services Administration,"; and (B) by striking out "Health, Education, and Welfare" and inserting in lieu thereof "Health and Human Services". (3) Section 417(c)(2) of such Act is amended by striking out "Secretary of Health, Education, and Welfare or the Secretary of Health and Human Resources, as the case may be," and inserting in lieu thereof "Secretary of Health and Human Services".

CHAPTER 7—CHILD ABUSE PREVENTION AND TREATMENT PROGRAMS STATE GRANTS UNDER CHILD ABUSE PREVENTION AND TREATMENT ACT

42 USC 5103 ^0^ 42 USC 5103.

SEC. 609. There is authorized to be appropriated to make grants to States under section 4(b)(l) of the Child Abuse Prevention and Treatment Act $7,000,000 for each of the fiscal years 1982 and 1983. DISCRETIONARY PROGRAMS

42 USC 5107.

SEC. 610. (a)(1) The Secretary of Health and Human Services, either directly, through grants to States and public and private, nonprofit organizations and agencies, or through jointly financed cooperative arrangements with States, public agencies, and other agencies and organizations, is authorized to provide for activities of nationed significance related to child abuse prevention and treatment and adoption reform, including operation of a national center to collect and disseminate information regarding child abuse and neglect, and operation of a national adoption information exchange system to facilitate the adoptive placement of children.

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 PUBLIC LAW 97-35—AUG. 13, 1981

95 STAT. 489

(2) The Secretary, in carrying out the provisions of this subsection, shall provide for the continued operation of the National Center on Child Abuse and Neglect in accordance with section 2(a) of the Child Abuse Prevention and Treatment Act for each of the fiscal years 1982 42 USC 5ioi. and 1983. (3) If the Secretary determines, in fiscal year 1982 or 1983, to carry out any of the activities described in section 2(b) of the Child Abuse Prevention and Treatment Act, the Secretary shall carry out such activities through the National Center on Child Abuse and Neglect. (b) There is authorized to be appropriated to cariy out this section Appropriation $12,000,000 for each of the fiscal years 1982 and 1983. Of the amounts authorization. appropriated under this subsection for any fiscal year, not less than $2,000,000 shall be available to carry out title II of the Child Abuse Prevention and Treatment and Adoption Reform Act of 1978. 42 USC 5iii. CHAPTER 8—COMMUNITY SERVICES PROGRAMS Subchapter A—Community Economic Development SHORT TITLE

SEC, 611. This subchapter may be cited as the "Community Economic Development Act of 1981".

Community Economic Development Act of 1981. 42 USC 9801 note.

STATEMENT OP PURPOSE

SEC. 612. The purpose of this subchapter is to encourage the development of special programs by which the residents of urban and rural low-income areas may, through self-help and mobilization of the community at large, with appropriate Federal assistance, improve the quality of their economic and social participation in community life in such a way as to contribute to the elimination of poverty and the establishment of permanent economic and social benefits.

42 USC 9801.

DEFINITION

SEC. 613. For purposes of this subchapter, the term "community 42TJSC 9802. development corporation" means a nonprofit organization responsible to residents of the area it serves which is receiving financial assistance under part 1 and any organization more than 50 percent of Post, p. 490. which is owned by such an organization, or otherwise controlled by such an organization, or designated by such an organization for the purpose of this subchapter. SOURCE OF FUNDS

SEC. 614. The Secretary is authorized to use funds made available to 42 Use 9803. the Secretary under section 681(b) for purposes of carrying out the Post, p. 518. provisions of this subchapter. ADVISORY COMMUNITY INVESTMENT BOARDS

SEC. 615. (a)(1) The President is authorized to establish a National Advisory Community Investment Board (hereinafter in this section referred to as the "Investment Board"). Such Investment Board shall be composed of 15 members appointed, for staggered terms and without regard to the civil service laws, by the President, in consultation with the Secretary of Health and Human Services (hereinafter in

Establishment. 42 USC 9804:

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 95 STAT. 490

PUBLIC LAW 97-35—AUG. 13, 1981 this subchapter referred to as the "Secretary"). Such members shall be representative of the investment and business communities and appropriate fields of endeavor related to this subchapter. The Investment Board shall meet at the call of the chairperson, but not less often than 3 times each year. The Secretary and the administrator of community economic development programs shall be ex officio members of the Investment Board. (2) The Secretary shall carry out the provisions of this subchapter through the Office of Community Services established in section 676(a). (b) The Investment Board shall promote cooperation between private investors and businesses and community development corporation projects through— (1) advising the Secretary and the community development corporations on ways to facilitate private investment; (2) advising businesses and other investors of opportunities in community development corporation projects; and (3) advising the Secretary, community development corporations, and private investors and businesses of ways in which they might engage in mutually beneficial efforts. (c) The governing body of each Community Development Corporation may establish an advisory community investment board composed of not to exceed 15 members who shall be appointed by the governing body after consultation with appropriate local officials. Each such board shall promote cooperation between private investors and businesses and the governing body of the Community Development Corporation through— (1) advising the governing body on ways to facilitate private investors; (2) advising businesses and other investors of opportunities in Community Development Corporation projects; and (3) advising the governing body, private investors, and businesses of ways in which they might engage in mutually beneficial efforts. PART 1—URBAN AND RURAL SPECL^L IMPACT PROGRAMS STATEMENT OF PURPOSE

42 USC 9805.

SEC. 616. The purpose of this part is to establish special programs of assistance to nonprofit private locally initiated community development corporations which (1) are directed to the solution of the critical problems existing in particular communities or neighborhoods (defined without regard to political or other subdivisions or boundaries) within those urban and rural areas having concentrations or substantial numbers of low-income persons; (2) are of sufficient size, scope, and duration to have an appreciable impact in such communities, neighborhoods, and rural areas in arresting tendencies toward dependency, chronic unemployment, and community deterioration; (3) hold forth the prospect of continuing to have such impact after the termination of financial assistance under this part; and (4) provide financial and other assistance to start, expand, or locate enterprises in or near the area to be served so as to provide employment and ownership opportunities for residents of such areas, including those who are disadvantaged in the labor market because of their limited speaking, reading, and writing abilities in the English language.

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Page:United States Statutes at Large Volume 95.djvu/517

 PUBLIC LAW 97-35—AUG. 13, 1981

95 STAT. 491

ESTABLISHMENT AND SCOPE OF PROGRAMS

SEC. 617. (a) The Secretary is authorized to provide financdal Grants. assistance in the form of grants to nonprofit and for profit community ^2 USC 9806. development corporations and other affiliated and supportive agencies and organizations associated with qualifying community development corporations for the payment of all or part of the cost of programs which are designed to cany out the purposes of this part. Financial assistance shall be provided so that each community economic development program is of sufficient size, scope, and duration to have an appreciable impact on the area served. Such programs may include— (1) community business and commercial development programs, including (A) programs which provide financial and other assistance (including equity capital) to start, expand, or locate businesses in or near the area served so as to provide employment and ownership opportunities for residents of such areas; and (B) programs for small businesses located in or owned by residents of such areas; (2) community physical development programs, including industrial parks and housing activities, which contribute to an improved environment and which create new training, employment and ownership opportunities for residents of such area; (3) training and public service employment programs and related services for unemployed or low-income persons which support and complement community development programs financed under this part, including, without limitation, activities such as those described in the Comprehensive Emplo3rment and Training Act; and (4) social service programs which support and complement community business and commercial development programs financed under this part, including child care, educational services, health services, credit counseling, energy conservation, recreation services, and programs for the maintenance of housing facilities. (b) The Secretary shall conduct programs assisted under this part so as to contribute, on an equitable basis between urban and rural areas, to the elimination of poverty and the establishment of permanent economic and social benefits in such areas. FINANCIAL ASSISTANCE REQUIREMENTS

SEC. 618. (a) The Secretary, under such regulations as the Secretary 42 USC 9807. may establish, shall not provide financial assistance for any community economic development program under this part unless the Secretary determines that— (1) such community development corporation is responsible to residents of the area served (A) through a governing body not less than 50 percent of the members of which are area residents; and (B) in accordance with such other guidelines as may be established by the Secretary, except that the composition of the governing bodies of organizations owned or controlled by the community development corporation need not be subject to such residency requirement; (2) the program will be appropriately coordinated with local planning under this subchapter with housing and community development programs, with employment and training pro-

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Page:United States Statutes at Large Volume 95.djvu/518

 95 STAT. 492

PUBLIC LAW 97-36-AUG. 13, 1981 grams, and with other relevant planning for physical and human resources in the areas served; (3) adequate technical assistance is made available and committed to the programs being supported; (4) such fmancial assistance will materially further the purposes of this part; (5) the applicant is fulfilling or will fulfill a need for services, supplies, or facilities which is otherwise not being met; (6) all projects and related facilities will, to the maximum feasible extent, be located in the areas served; (7) projects will, where feasible, promote the development of entrepreneurial and management skills and the ownership or participation in ownership of assisted businesses and housing, cooperatively or otherwise, by residents of the area served; (8) projects will be planned and carried out with the fullest possible participation of resident or local businessmen and representatives of financial institutions, including participation through contract, joint venture, partnership, stock ownership or membership on the governing boards or advisory councils of such projects consistent with the self-help purposes of this subchapter; (9) no participant will be employed on projects involving political parties, or the construction, operation, or maintenance of so much of any facility as is used or to be used for sectarian instruction or as a place for religious worship; (10) the program will not result in the (hsplacement of employed workers or impair existing contracts for services, or result in the substitution of Federal or other funds in connection with work that would otherwise be performed; (11) the rates of pay for time spent in work training and education, and other conditions of employment, will be appropriate and reasonable in the light of such factors as the type of work, geographical region, and proficiency of the participant; (12) the progreim will, to the maximum extent feasible, contribute to the occupational development or upward mobility of individual participants; (13) preference will be given to low-income or economically disadvantaged residents of the areas served in filling jobs and training opportuiiities; and (14) training programs carried out in connection with projects financed under this part shall be designed wherever feasible to provide those persons who successfully complete such training with skills which are also in demand in communities, neighborhoods, or rural areas other than those for which programs are established under this part. (b) Financial assistance under this section shall not be extended to assist in the relocation of establishments from one location to another if such relocation would result in a substantial increase in unemployment in the area of original location. (c) Financial assistance for commercial development under this part shall not be extended until the community economic development program that has applied for assistance under this subchapter has specified in some detail its development goals and its development timetable. The Secretary, in providing continued financial assistance to a community economic development program, shall give serious consideration to the experience such program has had in meeting development goals or in adhering to development timetables.

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Page:United States Statutes at Large Volume 95.djvu/519

 PUBLIC LAW 97-35-AUG. 13, 1981

95 STAT. 493

FEDERAL SHARE

SEC. 619. (a)(1) Assistance provided under this subchapter to any 42 USC 9808. program described in section 618(a) shall not exceed 90 percent of the cost of such program, including costs of administration, unless the Secretary determines that the assistance in excess of such percentage is required in furtherance of the purposes of this subchapter. NonFederal contributions may be in cash or in kind, fairly evaluated, including but not limited to plant, equipment, and services. (2) The assistance referred to in paragraph (1) shall be made available (A) for deposit to the order of grantees which have demonstrated successfid program performance, under conditions which the Secretary deems appropriate, within 80 days following approval of the grant agreement by the Secretary and such grantee; or (B) whenever the Secretary deems appropriate, in accordance with applicable rules and regulations prescribed by the Secretary of the Treasury, and including any other conditions which the Secretary of Health and Human Services deems appropriate, within 30 days following approval of the grant agreement by the Secretary and such grantee. (b) Property acquired as a result of capital investments made by any community development corporation with funds granted as ite Federal share of the cost of programs carried out under this subchapter, and the proceeds from such property, shall become the property of the community development corporation and shall not be considered to be Federal property. The Federal Government retains the right to direct that on severance of the grant relationship the assets purchased with grant funds shall continue to be used for the original purpose for which they were granted. PART 2—SPECIAL RURAL PROGRAMS STATEMENT OF PURPOSE

SEC. 620. It is the purpose of this part to meet the special economic 42 USC 9809. needs of rural communities or areas with concentrations or substantigil numbers of low-income persons by providing support to self-help programs which promote economic development and independence, as a supplement to existing similar programs conducted by other departments and agencies of the Federal Government. Such programs should encourage low-income families to pool their talents and resources so as to create and expand rural economic enterprise. FINANCIAL ASSISTANCE

SEC. 621. (a) The Secretary is authorized to provide financial 42 USC 9810. assistance, including loans having a maximum maturity of fifteen years and in amounts not resulting in an aggregate principal indebtedness of more than $3,500 at any one time, to any low-income rural family where, in the judgment of the Secretary, such financial assistance has a reasonable possibility of effecting a permanent increase in the income of such families, or will contribute to the improvement of their living or housing conditions, by assisting or permitting them to— (1) acquire or improve real estate or reduce encumbrances or erect improvements thereon;

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