tions" (Act of June 8, 1936, Public Law 673, 74th Congress, 49 Stat. 1488 as amended by Act of August 1, 1946, Public Law 586, 79th Congress, 60 Stat. 775, and Act of August 8, 1956, Public Law 1027, 84th Congress, 70 Stat. 1126, 20 U.S.C. 15i-15q); "Title II-Vocational Education in Practical Nursing" (Title III, Act of August 2, 1956, Public Law 911, 84th Congress, 70 Stat. 925, as amended in Act of April 24, 1961, Public Law 87-22, 75 Stat. 44, 20 U.S.C. 15aa15ii); and "Title III-Area Vocational Education Programs" (Title VIII, National Defense Education Act of 1958, Public Law 85-864, 72 Stat. 1597, 20 U.S.C. 15aaa-15ggg).

(3) "Supplementary acts" means section 1 of the Act of March 3, 1931, relating to vocational education in Puerto Rico (Public Law 791, 71st Congress, 46 Stat. 1489, 20 U.S.C. 30); the Act of March 18, 1950, relating to vocational education in the Virgin Islands (Public Law 462, 81st Congress, 64 Stat. 27, 20 U.S.C. 31-33); section 9 of the Act of August 1, 1956, relating to vocational education in Guam (Public Law 896, 84th Congress, 70 Stat. 909, 20 U.S.C. 34); and section 2 of the Act of September 25, 1962, relating to vocational education in American Samoa (Public Law 87-688, 76 Stat. 586, 48 U.S.C. 1667).

(4) "1963 Act" means the Vocational Education Act of 1963 (Part A of Public Law 88-210, 77 Stat. 403, 20 U.S.C. 35-35n).

(b) "Area vocational education school" means any public school or public institution the facilities or which can be constructed with Federal funds under the provisions of section 4(a) (5) of the 1963 Act.

(1) These may include only:

(i) A specialized high school used exclusively or principally for the provision of vocational education to persons who are available for full-time study in preparation for entering the labor market;

(ii) The department of a high school exclusively or principally used for providing vocational education in no less than five different occupational fields to persons who are available for full-time study in preparation for entering the labor market;

(iii) A technical or vocational school used exclusively or principally for the provision of vocational education to persons who have completed or left high school and who are available for full

time study in preparation for entering the labor market; and

(iv) The department or division of a junior college or community college or university which, under the supervision of the State board, provides vocational education in no less than five different occupational fields leading to immediate employment but not leading to a baccalaureate degree.

(2) An "area vocational education school" shall be available to all residents of the State or an area of the State designated and approved by the State board. In the case of a technical or vocational school described in subparagraph (1)(iii) of this paragraph or a department or division of a junior college or community college or university described in subparagraph (1)(iv) of this paragraph, such school must admit as regular students both persons who have completed high school and persons who have left high school.

(c) "Business and office occupations" means those occupations pursued by individuals in public or private enterprises or organizations which are related to the facilitating function of the office and includes such activities as recording and retrieval of data, supervision and coordination of office activities, internal and external communication, and reporting of information.

(d) "Commissioner" means the Commissioner of Education, U.S. Department of Health, Education, and Welfare.

(e) "Construction project" means a specific proposal for construction of an area vocational school facility which will be accomplished at a single site as provided in § 104.44.

(f) "Employment" means lawful work in a recognized occupation.

(g) "Equipment" means a fixed or movable article or set of articles which meet all the following conditions: (1) The article retains its original shape and general appearance with reasonable care and use over a period of at least one year; (2) it is nonexpendable; that is, if the article is damaged or some of its parts are lost or worn out, it is usually more feasible to repair it than to replace it with an entirely new unit; and (3) it does not lose its identity through incorporation into a different or more complex unit or substance. See for example § 104.1 (n) (2) and § 104.48.

(h) "Funds", unless otherwise specified, means any public funds available for expenditure under the State plan,

whether derived from Federal grants or State or local appropriations or other sources. See § 104.27 for further explanation.)

(i) "Gainful employment" means employment in a recognized occupation for which persons normally receive a wage, salary, fee, or profit.

"secondary

(j) "High school" or school" shall not be applicable to instruction at any grade beyond grade 12.

(k) "Local educational agency" means a board of education or other legally constituted local school authority having administrative control and direction of public elementary or secondary schools in a city, county, township, school district, or political subdivision in a State, or any other public educational institution or agency having administrative control and direction of a vocational education program (except as otherwise provided in section 210(d) of the GeorgeBarden Act for health occupations training.) In the regulations of this part. anything modified by the adjective "local" pertains to a "local educational agency" herein defined.

(1) "Occupational field" means a group of recognized occupations having substantial similarities common to all occupations in the group, e.g., similarity in the work performed; similarity in the abilities and knowledge required of the worker for successful job performance; similarity in the tools, machines, instruments and other equipment used; and similarity in the basic materials worked on or with. The term is applied, in the case of Federal participation in the construction of an area vocational school, to determine whether a department of a certain type of high school, or a department or division of a junior college, community college, or university provides "vocational education in no less than five different occupational fields". (See § 104.1 (b) (1) (ii) and (iv).) The purpose is to assure that such schools will have offerings that will afford prospective students of varying interests a reasonably broad choice of the type of occupation for which they are to be trained. Determinations of what is an "occupational field" will be made in the light of this purpose.

(m) "Recognized occupation" means a lawful occupation that the Commissioner finds is identifiable by employers, employee groups, and governmental and non-governmental agencies and institu

tions concerned with the definition and classification of occupations.

(n) "School facilities" means the facilities of an area vocational education school which may be constructed with Federal funds under section 4(a) (5) of the 1963 Act, including

(1) Instructional and auxiliary rooms and space necessary to operate a program of vocational instruction at normal capacity (in accordance with the State plan and the laws and customs of the State), such as classrooms, libraries, laboratories, workshops, cafeterias, office space and utility space. This would not include facilities intended primarily for events for which admission is to be charged to the public such as single purpose auditoriums, indoor arenas, or outdoor stadiums.

(2) Initial equipment of the school facilities described in subparagraph (1) of this paragraph includes all necessary building fixtures and utilities, furnishings (including conventional classroom and office furniture), and instructional equipment as defined in § 104.48.

(i) In connection with the erection of new or the expansion of existing facilities, initial equipment shall include only that equipment which must be placed in the proposed facility to accommodate the type of instruction or other vocational education purpose for which the facility is designed.

(ii) In connection with the remodeling and alteration of existing facilities, initial equipment also may include equipment installed to replace obsolete or wornout equipment. Any reimbursement for salvage or trade-in value of any such equipment shall be deducted in computing the cost of such replacement equipment to be included in the construction costs of a proposed project.

(3) Interests, whether in fee, leasehold, or otherwise, in land on which such facilities are to be constructed.

(o) "State" means a State of the Union, the District of Columbia, Puerto Rico, Virgin Islands, Guam, or American Samoa, except that, with respect to funds under the Smith-Hughes Act, the term does not include the District of Columbia, Virgin Islands, Guam, or American Samoa.

(p) "State board" means the State Board for Vocational Education designated or created pursuant to section 5 of the Smith-Hughes Act and described in § 104.3.

(q) "Vocational education" includes programs, services, or activities related to vocational or technical training or retraining and provided for under the acts, the regulations of this part, and the State plan. In these regulations, anything modified by the adjective "vocational" pertains to "vocational education" as herein defined. See §§ 104.13 to 104.21 for description of programs, services, or activities related to vocational and technical training or retraining. Subpart B-State Plan Provisions § 104.2 State plan.

As a

(a) Submission and approval. condition for the allotment of Federal funds, the State board is required to adopt and submit to the Commissioner a State plan. If found by the Commissioner to be in conformity with the provisions and purposes of the Acts and regulations, the plan will be approved. The Commissioner shall not finally disapprove a State plan except after reasonable notice and opportunity for a hearing has been offered to the State board. The effective date of the State plan is the date on which it is received by the Commissioner in substantially approvable form.

(b) Amendment. The administration of vocational education programs under the State plan must be kept in conformity with the approved State plan. Whenever there is any material change in the content or administration of such program, or in pertinent State law, or in the organization, policies, and operations of the State board affecting the programs under the plan, the State plan shall be appropriately amended by the State board, and such amendment shall be submitted to the Commissioner. The effective date of such amendment is the date on which it is received by the Commissioner in substantially approvable form.

(c) Laws, policies, and procedures. The State plan is a description of the State's vocational education programs. It shall set forth the State's authority under State law for its administration of such programs. It shall include the policies to be followed by the State in maintaining, extending, and improving existing programs and developing new programs of vocational education so that persons of all ages in all communities of the State will have ready access to vocational training or retraining which is of high quality, with offerings that have been developed in the light of actual or

anticipated opportunities for employment, and which is suited to the needs, interests, and ability of such persons to benefit from such training.

(1) For State plan requirements applicable to vocational education under the Acts:

(i) Regarding vocational education in general, see § 104.2 to § 104.12.

(ii) Regarding specific vocational education programs, services, and activities, see § 104.13 to 104.26.

(iii) Regarding Federal financial participation, see appropriate sections in Subpart C.

(2) For specific State requirements regarding funds not transferred from the various allotments under the SmithHughes, George-Barden and supplementary acts to the allotment under section 3 of the 1963 Act, see sections 8, 10, 11, and 12 of the Smith-Hughes Act and section 7 of title I of the George-Barden Act and § 104.56 to § 104.76; section 205 (a) of title II of the George-Barden Act and § 104.77 to 104.80 of the regulations; and section 305(a) of title III of the George-Barden Act and § 104.81 to § 104.84.

(d) Certification of State plan-(1) Certification by State board. The State plan and all amendments thereto shall include as an attachment a certificate of the officer of the State board authorized to submit the State plan to the effect that the plan or amendment has been adopted by the State board and that the plan, or plan as amended, will constitute the basis for operation and administration of the vocational education programs in which Federal financial participation will be made.

(2) Certification by State Attorney General. The State plan shall also include as an attachment a certificate by the State's Attorney General, or other official designated in accordance with State law to advise the State board on legal matters, to the effect that the State board named in the plan is the State board which has authority under the State law to submit the State plan and to administer or supervise the administration of the vocational education programs described therein as the sole agency responsible for administration of the plan; and that all the plan provisions are consistent with the State law. § 104.3 State board.

of Federal funds, the Acts require that the State, through its legislative authority, designate or create a State board of not less than three members having all necessary power to cooperate with the Office of Education in the administration of the State plan. The State plan shall identity the State board so designated and created. In administering the vocational education programs for which allotments are made to the States under the Acts, the Office of Education will deal only through the State board and its authorized representatives except as otherwise provided for in the State plan. (See for example § 104.9.)

(b) Composition of State board or State advisory council. (1) The State plan shall provide that either the State board or a State advisory council created or designated by the State board to consult with the State board in carrying out the State plan include as members (1) persons familiar with the vocational education needs of management and labor in the State, and (ii) a person or persons representative of junior colleges, technical institutes, or other institutions of higher education which provide programs of technical or vocational training meeting the description and requirements of vocational instruction provided in § 104.13. The State plan shall describe the criteria to be followed in determining whether such persons meet such qualifications. With respect to persons familiar with the vocational needs of management and labor in the State, such criteria shall indicate that such familiarity will have been acquired directly through recent actual experience and work in or association with the fields of management and labor in the State. With respect to a person or persons representative of junior colleges, technical institutes, and other institutions of higher education in the State administering vocational education programs meeting the standards and requirements outlined in § 104.13, such criteria shall indicate the necessity of recent association with such an institution in the State (or, if no institution exists within the State, association with such an institution outside the State) and familiarity with that institution's vocational education programs.

(2) In its annual report submitted pursuant to § 104.55, the State board shall include an appendix listing the members of the State board (or State

advisory council if one is appointed or designated in compliance with paragraph (a) of this section), indicating the members who meet the qualifications required by paragraph (a) of this section. The report shall indicate what past experience or association, particularly recent experience or association, qualify such members as persons meeting such requirements.

(3) The State board shall indicate in its annual report for each fiscal year submitted pursuant to § 104.55(b):

(1) Its consideration of the vocational education needs of management and labor in the State in formulating and carrying out its vocational education programs, and the extent to which it relied on members of the State board or advisory council familiar with such needs in formulating and carrying out such programs.

(ii) The actual or anticipated role of junior colleges, technical institutes, and other institutions providing education beyond the high school level which make available vocational education to persons who have completed or left high school, to persons who have already entered the labor market, and to persons with academic, socioeconomic or other handicaps preventing them from succeeding in the regular vocational education programs, and the extent to which the State board relied on representatives of such institutions in developing such a role.

(c) Authority of State board. Authority to administer vocational education at the State level or to supervise the administration of vocational education at the local level shall rest solely with the State board. The State plan shall set forth the authority of the State board under State law to submit the State plan and administer the program contained therein. If there is any administration by local educational agencies, the basis under State law for the supervision of such administration by the State board shall also be set forth. Copies of, or citations to, all directly pertinent laws and interpretations of laws by appropriate State officials or courts shall be furnished as part of the State plan.

§ 104.4 State administration and leadership.

(a) Adequate State board staff. The State plan shall provide for a State staff sufficiently adequate to enable the State

board to administer, supervise, and evaluate vocational education programs, services, and activities under the State plan to the extent necessary to assure quality in all vocational education programs which are realistic in terms of actual or anticipated employment opportunities and suited to the needs, interests, and abilities of those being trained.

(b) Organization of State board staff. The State plan shall describe the organizational structure of such a staff, including a description of its units, the functions assigned to each, and the relationships among the units within the State board staff and with other State agencies and institutions responsible for conducting programs of vocational and technical education. The titles of all State officials who are to have authority in the administration and supervision of the program shall be given in the State plan, and their responsibilities described. This description shall be sufficient to enable the Commissioner to find that the State board has an adequate staff to provide requisite administration and supervision of the federally aided vocational education programs. If the scope and responsibilities of the program aided by Federal funds under the Acts require it, the plan shall provide for a full-time director or a fulltime executive officer who shall have no substantial duties outside the vocational education program.

§ 104.5

Custody of Federal funds.

The State plan shall provide that the State, through its legislative authority, will designate its State treasurer (or, if there be no State treasurer, the officer exercising similar functions for the State) to receive and provide proper custody of all Federal funds granted under the Acts to be disbursed under applicable State laws and regulations on requisition or order of the State board. The State plan shall identify the official SO designated to receive the funds. Copies of, or citations to, all directly pertinent laws and interpretations of laws by appropriate State officials or courts indicating the authority of the State treasurer or other official designated to receive, hold, and disburse funds on requisition or order of the State board shall be furnished as part of the State plan.

§ 104.6

Allocating Federal Funds under the 1963 Act.

(a) Policies and Procedures. The State plan shall set forth the policies and procedures to be used by the State as criteria in allocating Federal funds allotted to it under section 3 of the 1963 Act among the various uses indicated in section 4(a) of the 1963 Act and § 104.41 (b), and in allocating funds to local educational agencies in the State. Such policies and procedures shall be designed to insure that:

(1) Due consideration is given to

(i) The vocational education needs of all persons of all age groups in all communities of the State, and

(ii) The results of periodic evaluation of State and local vocational education programs and services in light of

(a) Current and projected manpower needs and job opportunities;

(b) The need for maintaining, extending and improving existing programs and developing new programs of vocational education.

(2) Federal funds allotted to the State under section 3 of the 1963 Act shall not be used to supplant State or local funds, and, to the extent practical, shall be used to increase the amounts of State and local funds that would in the absence of such Federal funds be made available for the purposes in section 4(a) of the 1963 Act and in § 104.4(b), toward the end that

(i) All persons in all communities in the State will have ready access to vocational education.

(ii) Such vocational education is of high quality.

(iii) Such vocational education is suited to the needs, abilities, and interests of the students.

(3) In developing policies and procedures for determining whether and what amount of Federal funds will be allocated for direct expenditure by the State board or for expenditure by a local educational agency in a manner pursuant to subparagraph (2) of this paragraph, the State board shall set forth in its State plan criteria for making such determination which take into consideration, among other relevant factors, the following:

(i) The amount of State or local funds budgeted for expenditure by such board or agency for vocational education in the fiscal year in which the allocation of