A bill to make certain technical and miscellaneous amendments to the provisions relating to vocational education contained in the Education Amendments of 1976.
PL 95-40 (H.R.3437), enacted 06/03/1977

PUBLIC LAW 95-40—JUNE 3, 1977 
91 STAT. 203 
Public Law 95-40 
95th Congress 
An Act 
To make certain technical and miscellaneous amendments to provisions relating 
to vocational education contained in the Education Amendments of 1976. 
June 3, 1977 
[H.R. 3437] 
Be it enacted hy the SeTiate and House of Representatives 
of the 
United States of America in Congress assembled, That the Vocational 
Education Act of 1963 is amended as follows: 
(1) Section 102(a) of the Vocational Education Act of 1963 is 
amended by striking out "$1,325,000" and inserting in lieu thereof 
"$1,325,000,000", and by striking out "$1,485,000" and inserting in 
lieu thereof "$1,485,000,000". 
(2) Section 102(d) of such Act is amended by inserting "and" 
after paragraph (2) and by striking out "; and, (4) State administra-
tion of vocational education programs assisted under this Act". 
(3) Section 103(a)(1)(A) 
(as in effect on October 12, 1976, 
pursuant to section 204(a) (2) (B) of the Education Amendments of 
1976) of such Act is amended by inserting " (b) (1)" immediately after 
"161". 
(4) (A) Section 103(a) (1) (B) (iii) of such Act is amended by 
striking out the last sentence and inserting in lieu thereof: "Beginning 
in the fiscal year 1979, the Bureau of Indian Affairs shall expend an 
amount equal to the amount made available under this subparagraph 
to pay a part of the costs of programs funded under this subpara-
graph. During each of the fiscal years covered by this subparagraph, 
the Bureau of Indian Affairs shall expend no less than the amount 
expended during the prior fiscal year on vocational education pro-
grams, services, and activities. The Commissioner and the Commis-
sioner of Indian Affairs 
shall jointly prepare a plan for 
the 
expenditure of funds made available and for the evaluation of pro-
grams assisted under this subparagraph. Upon the completion of a 
joint plan for the expenditure of these funds and the evaluation of the 
programs, the Commissioner shall assume responsibility for the 
administration of the program, with the assistance and consultation of 
the Bureau of Indian Affairs.". 
(B) Section 103(a) (1) (B) (iii) of such Act is further amended by 
striking out "which has contracted" in the first sentence and inserting 
in lieu thereof "which is eligible to contract". 
(C) Section 103(c)(1)(B) of such Act is amended by inserting 
"the Northern Mariana Islands," immediately after "the Virgin 
Islands," in both places where that term occurs. 
(5) (A) Section 105(a) (20) of such Act is amended by striking 
out "clauses of this paragraph" and inserting in lieu thereof "clauses 
of this sentence". 
(B) Section 105(d)(4)(A) of such Act is amended by inserting 
"special education," after "vocational rehabilitation,". 
(6) (A) The first sentence of section 105(f)(1) of such Act is 
amended by striking out "$8,000,000 for fiscal year 1982" and by 
inserting in lieu thereof "$10,000,000 for fiscal year 1982". 
(B) The second sentence of section 105(f)(1) 
of such Act is 
amended by inserting immediately after "State advisory councils" 
the following: "from amounts allotted to such advisory councils in 
Vocational 
Education Act of 
1963, 
amendments. 
20 u s e 2302. 
20 u s e 2303. 
Plan, 
preparation. 
Program 
administration. 
20 u s e 2305. 
91 STAT. 204 
PUBLIC LAW 95-40—JUNE 3, 1977 
accordance with the method for allotment contained in section 103 
20 use 2303. 
(a)(2),". 
20 use 2305. 
(C) The third sentence of section 105 (f) (1) of such Act is amended 
by inserting "the Northern Mariana Islands," immediately 
after 
"American Samoa,". 
20 use 2306. 
(7) Section 106(a)(8) of such Act is amended by inserting " ) " 
> 
after "under subpart 5 of this part". 
(8) Section 107(a) (1) (as in effect on October 12, 1976, pursuant 
to section 204(a) (2) (A) of the Education Amendments of 1976) of 
20 use 2307. 
such Act is amended by inserting immediately before the period at the 
' 
• . 
end of the first sentence thereof "in which the plan is submitted", and 
in the fifth sentence thereof by striking out " ( a ) " and inserting in lieu 
thereof " ( A ) " , by striking out " ( b ) " and inserting in lieu thereof 
" ( B ) " , and by striking out " ( c ) " and inserting in lieu thereof " ( C ) " . 
20 use 2310. 
(9) Sections 110(a) and 110(b) (1) of such Act are amended to read 
as follows: 
"SEC. 110. (a) For each fiscal year, at least 10 per centum of each 
Ante, p. 203. 
State's allotment under section 103 from appropriations made under 
Ante, p. 203. 
section 102(a) shall be used to pay up to 50 per centum of the cost of 
programs, services, and activities under subpart 2 and of program 
* 
' ' 
''•' improvement and supportive services under subpart 3 for handicapped 
persons. 
"(b) (1) For each fiscal year, at least 20 per centum of each State's 
allotment under section 103 from appropriations made under section 
102(a) shall be used to pay up to 50 per centum of the cost of pro-
grams, services, and activities under subpart 2 and of program 
( improvement and supportive services under subpart 3 for disadvan-
taged persons (other than handicapped persons), for persons who have 
limited English-speaking ability, and for providing stipends author-
20 use 2330. 
ized under section 120(b) (1) (G).". 
(10) Section 110(c) of such Act is amended to read as follows: 
"(c) For each fiscal year, at least 15 per centum of each State's 
allotment under section 103 from appropriations made under section 
102(a) shall be used to pay up to 50 per centum of the cost of pro-
''•"'" 
*'• grams, services, and activities under subpart 2 and of program 
improvement and supportive services under subpart 3 for (1) persons 
who have completed or left high school and who are enrolled in orga-
nized programs of study for which credit is given toward an associate 
or other degree, but which programs are not designed as baccalaureate 
or higher degree programs, and (2) persons who have already entered 
the labor market, or are unemployed, or who have completed or left 
high school and who are not described in paragraph (1).". 
20 use 2311. 
(11) Section 111(a)(1) of such Act is amended by striking out 
.•>,-• - 
., I- "equal to" in the first place where that term occurs and inserting in 
•'^; 
' ' 
lieu thereof "not to exceed" and by inserting immediately after 
"Islands" the following: ", the Northern Mariana Islands, Guam, the 
I 
Virgin Islands,". 
(12) Section 111(a)(1)(B) of such Act is amended by striking out 
"section" and inserting in lieu thereof "sections" and by striking out 
"vocational education programs" and by inserting in lieu thereof "pro-
grams, services, and activities under subpart 2 and program improve-
ment and supportive services under subpart 3". 
(13) Section 111(a)(1)(C) of such Act is amended by striking out 
"described in sections 122(f), 133(b), and 140" and inserting in lieu 
thereof "provided in accordance with sections 122(f), 132(b), and 140 
20 use 2332, 
(b)(2)". 
2352,2370. 
PUBLIC LAW 95-40—JUNE 3, 1977 
91 STAT. 205 
• (14) Section 111(a) (1) of such Act is further amended by redesig-
nating clause (C) as clause (D), by striking out "and" after clause 
(B), and by inserting immediately below clause (B) the following new 
clause: 
"(C) a part of the costs of supervision and administration of 
vocational education programs by an eligible recipient, except that 
such payment shall not exceed (i) a percentage of such costs equal 
to the percentage of the total costs of the vocational education pro-
gram of such eligible recipient paid for from this section, or (ii) 
50 per centum of such costs if the non-Federal share of such costs 
is paid by the State from appropriations for such pui-pose; and" 
(15) (A) Section 111 (a) (2) (A) of such Act is amended to read as 
follows: 
"(2) (A) In addition, the Commissioner shall pay, from each State's 
allotment under section 103 from appropriations made under section 
102(a), an amount not to exceed the Federal share of the cost of State 
administration of such plans.". 
(B) Section 108(b) (1) (B) (i) of such Act is amended by inserting 
after the word "uses" the second time it appears in such section the 
following: "for State administration and". 
(C) Section 108(b)(2)(B) of such Act is amended by inserting 
after the word "funds" the second time it appears in such section the 
following: "for State administration and". 
(D) Section 111(a) of such Act is amended by adding at the end 
thereof the following: 
"(3) In addition, the Commissioner shall pay, from the amount 
available to each State from the amount appropriated under section 
102(d), an amount not to exceed 100 per centum of the cost of carry-
ing out the purposes described in such section 102(d).". 
(16) (A) Section 111(a) (2) (B) of such Act is amended by strik-
out "for the fiscal year preceding fiscal year 1978" and by inserting in 
lieu thereof "for the latest fiscal year for which reliable data is avail-
able preceding fiscal year 1978". 
(B) Section 120(a) of such Act is amended by inserting immedi-
ately after "vocational education programs" the following: "and other 
programs, services, and activities operated". 
(17) (A) Section 120(b)(1) of such Act is amended by striking 
out "and" at the end of clause (L), by striking out the period at the 
end of clause (M) and inserting in lieu thereof a semicolon, and by 
adding at the end thereof the following new clauses: 
"(N) provision of vocational training through arrangements 
with private vocational training institutions where such private 
institutions can make a significant contribution to attaining the 
objectives of the State plan, and can provide substantially equiv-
alent training at a lesser cost, or can provide equipment or services 
not available in public institutions; and 
" (O) subject to the provisions of section 111, the costs of super-
vision and administration of vocational education programs by 
eligible recipients, and State administration of the five-year plan 
submitted pursuant to section 107 and of the annual program plan 
submitted pursuant to section 108, except that not more than 80 
per centum of the amount of payments determined under section 
111 for such purposes shall be made from grants under this 
: 
subpart." 
20 use 2311. 
Payment. 
Ante, p. 203. 
Ante, p. 203. 
20 use 2308. 
Payment. 
20 use 2330. 
Grants. 
Supra. 
Ante, p. 204. 
Supra. 
91 STAT. 206 
PUBLIC LAW 95-40—JUNE 3, 1977 
20 use 2332. 
Grants. 
20 use 2350. 
Ante, p. 204. 
Ante, p. 204. 
Ante, p. 205. 
20 use 2351. 
Contracts. 
20 use 2352. 
Supra. 
eontracts. 
20 use 2353. 
20 use 2354. 
20 use 2391. 
20 use 2312. 
20 use 2391 
note. 
20 use 2392. 
Gifts, acceptance. 
(B) Section 122(g) of such Act is amended by striking out "used 
for purposes of this section" and inserting in lieu thereof "made 
available under this section to accommodate students in nonprofit 
private schools". 
(C) Section 130(b) of such Act is amended by striking out "and" 
after paragraph (5), by striking out the period at the end of such 
section and inserting in lieu thereof "; and", and by inserting immedi-
ately below paragraph (6) of such section the following new 
paragraph: 
"(7) subject to the provisions of section 111, the costs of super-
vision and administration of vocational education programs by 
eligible recipients, and State administration of the five-year plan 
submitted pursuant to section 107 and of the annual program 
plan submitted pursuant to section 108, except that not more than 
20 per centum of the amount of payments determined under sec-
tion 111 for such purposes shall be made from grants under this 
subpart,". 
(18) (A) Section 131(a) of such Act is amended by striking out 
"coordination" and inserting in lieu thereof "coordinating". 
(B) That portion of section 132(a) of such Act preceding para-
graph (1) is amended to read as follows: 
"SEC. 132. (a) Funds available to the States under section 130(a) 
may be used for contracts by State research coordinating units pur-
suant to comprehensive plans of program improvement for the support 
of exemplary and innovative programs, including—". 
(C) Section 132(b) of such Act is amended by inserting immedi-
ately after "Federal funds" the following: "made available under this 
section to accommodate students in nonprofit private schools". 
(19) That portion of section 133(a) of such Act preceding para-
graph (1) is amended to read as follows: 
"SEC. 133. (a) Funds available to the States under section 130(a) 
may be used for contracts by State research coordinating units pur-
suant to comprehensive plans of program improvement for the sup-
port of curriculum development projects, including—". 
(20) Section 134(a) of such Act is amended by striking out "shall 
include" and by inserting in lieu thereof "shall include one or more 
of the following activities". 
(21) Section 161(a)(1) of such Act is amended by striking out 
"section 112" and by inserting in lieu thereof "section 112(b)". 
(22) Section 161(a) (3) (A) of such Act is amended by striking out 
"October 1, 1977" and by inserting in lieu thereof "October 1, 1978". 
(23) Section 161(b) (1) (as in effect on October 12, 1976, pursuant 
to section 204(a) (2) (B) of the Education Amendments of 1976) of 
such Act is amended by inserting immediately after "in effect" in the 
second sentence the following: "on the date of the enactment of the 
Education Amendments of 1976 and", and in clause (B) by striking 
out "September 30, 1977" and by inserting in lieu thereof "Septem-
ber 30,1978". 
(24) (A) Section 162(b) (4) (A) of such Act is amended by insert-
ing "special education," after "vocational rehabilitation,". 
(B) Section 162(c) of such Act is amended by striking out "para-
graph" in the first sentence thereof and inserting in lieu thereof "sub-
section", and by adding at the end of such section the following new 
sentence: "The National Council may accept gifts if the acceptance of 
such gifts will better enable it to carry out its functions under this 
section.". 
PUBLIC LAW 95-40—JUNE 3, 1977 
91 STAT. 207 
• (25) Sections 191 and 192 of such Act are each amended by striking 
out "part" and inserting in lieu thereof "subpart", and such section 
191 is further amended by striking out "August 2" and inserting in lieu 
thereof "August 12". 
(26) (A) Section 195(7) of such Act is amended by striking out 
"crippled" and inserting in lieu thereof "orthopedically impaired" 
and by inserting immediately after "impaired persons" the following: 
", or persons with specific learning disabilities,". 
(B) Section 195(8) of such Act is amended by inserting "the 
Northern Mariana Islands," immediately after "American Samoa,". 
(27) (A) Section 195(15) of such Act is amended by striking out 
"designating" and inserting in lieu thereof "designing". 
(B) Section 195(20) of such Act is amended by striking out "For 
the purposes of this Act, the" and inserting in lieu thereof "The". 
(C) Section 195 of such Act is amended by adding at the end thereof 
the following: 
"(21) The term 'private vocational training institution' means a 
business or trade school, or technical institution or other technical 
or vocational school, in any State, which (A) admits as regular stu-
dents only persons who have completed or left elementary or secondary 
school and who have the ability to benefit from the training offered 
by such institution; (B) is legally authorized to provide, and provides 
within that State, a program of postsecondary vocational or technical 
education designed to fit individuals for useful employment in recog-
nized occupations; (C) has been in existence for two years or has been 
specially accredited by the Commissioner as an institution meeting 
the other requirements of this subsection; and (D) is accredited (i) 
by a nationally recognized accrediting agency or association listed 
by the Commissioner pursuant to this clause, or (ii) if the Commis-
sioner determines that there is no nationally recognized accrediting 
agency or association qualified to accredit schools of a particular cate-
gory, by a State agency listed by the Commissioner pursuant to this 
clause, or (iii) if the Commissioner determines that there is no nation-
ally recognized or State agency or association qualified to accredit 
schools of a particular category, by an advisory committee appointed 
by him and composed of persons specially qualified to evaluate training 
provided by schools of that category, w^hich committee shall prescribe 
the standards of content, scope, and quality which must be met by 
those schools and shall also determine whether particular schools meet 
those standards. For the purpose of this paragraph, the Commissioner 
shall publish a list of nationally recognized accrediting agencies or 
associations and State agencies which he determines to be reliable 
authority as to the quality of education or training afforded.". 
(28) (A) Section 107(b)(4) of the Comprehensive Employment 
and Training Act of 1973 is amended by inserting "special education," 
after "vocational rehabilitation,". 
(B) Section 503(5) of the Comprehensive Employment and Train-
ing Act of 1973 is amended by inserting "special education," after 
"vocational rehabilitation,". 
(29) Section 203 of the Education Amendments of 1976 is amended 
by adding at the end thereof the following: 
"(c) (1) Section 104 of the Vocational Education Amendments of 
1968 is amended by adding before the period at the end thereof the 
following: '(as such Act will be in effect on October 1, 1977)'-
"(2) The amendment made by this section shall be effective on and 
after October 1,1977.". 
20 use 2441, 
2442. 
20 use 2461. 
"Private 
vocational 
training 
institution.' 
List, publication. 
29 use 817. 
29 use 953. 
Effective date. 
90 Stat. 2213. 
20 use 11 note. 
29-194 0 
91 STAT. 208 
PUBLIC LAW 95-40—JUNE 3, 1977 
20 use 2563. 
lai'. 
Effective date. 
20 use 2563 
note. 
20 use 2301 
note. 
(30) The first sentence of section 523 (b)(2) of the Education 
Amendments of 1976 is amended by striking out "September 30,1979" 
and by inserting in lieu thereof "September 30, 1980" and by striking 
out "September 30,1980" and by inserting in lieu there "September 30, 
1981". The first sentence of such section 523(b) (2) is further amended 
by striking out everything which appears after "under this section". 
• (31) (A) Section 523(b) (3) of the Education Amendments of 1976 
is amended by striking "section" at the end of the first sentence and 
by inserting in lieu thereof "subsection concerning the National Insti-
tute of Education", and the second sentence of su(m section is amended 
by striking "October 1, 1979" and by inserting in lieu thereof "Octo-
ber 1, 1981". 
(B) The amendments made by subparagraph (A) shall take effect 
on and after October 1,1977. 
SEC. 2. Except where otherwise specifically indicated, any reference 
in the first section of this Act to the Vocational Education Act of 1963 
means such Act as in effect on October 1,1977. 
Approved June 3, 1977. 
•f i 
LEGISLATIVE HISTORY: 
HOUSE REPORT No. 95-86 (eomm. on Education and Labor). 
SENATE REPORT No. 95-142 (eomm. on Human Resources). 
eONGRESSIONAL REeORD, Vol. 123 (1977): 
Mar. 22, considered and passed House. 
May 16, considered and passed Senate, amended. 
May 18, House concurred in Senate amendments. 
iif i i 381 
j O!':