(b) Amend title II of Public Law 89-10 which relates to school library resources, textbooks, and other instructional materials by

(1) increasing the authorization from the recommended $105 to $125 million for the current fiscal year and providing that $150 million be authorized for fiscal year 1968;

(2) providing an authorization for an amount equal to 3 percent of the amounts appropriated for title II to be used to provide library services for Indian children and children in the territories and dependencies; and

(3) retaining for fiscal year 1967 and for fiscal year 1968 the present provision of the act permitting 5 percent of the amounts to be used by the States for administration of the program with the proviso that no State may receive less than $50,000 for this purpose and directing that this amount may be shared with local educational agencies in the maintenance of records covering the distribution of library resources, textbooks, and other instructional materials. (c) Title III of Public Law 89-10 is amended by

(1) increasing the authorization for the program for the current fiscal year from $100 to $200 million and providing $250 million for fiscal year 1968;

(2) authorizing BAI schools and for outlying territories an appropriation for each fiscal year of an amount equal to not more than 3 percent of the amount appropriated for such year;

(3) providing that facilities constructed under this title will be usable by handicapped persons;

(4) requiring that 25 percent of a State's apportionment shall be used to fund projects approved by State educational agencies; and

(5) adding a new section to the bill requiring the Commissioner to give special consideration to the application of any local educational agency which is making a reasonable tax effort but which is nevertheless unable to meet critical educational needs, including preschool education, or any other condition that has imposed a financial burden upon the agency.

(d) Title IV of Public Law 89-10 is amended to permit the Commissioner to carry out research training by contract as well as grant and to permit him to make such contracts with private profitmaking organizations. Amendments to this new title also include consolidation of previous authorities and amendments to the definition of construction, permitting the Commissioner to acquire existing structures.

(e) Title V of Public Law 89-10 is amended by increasing the authorization for this title from $25 million to $30 million for fiscal year 1967 and to $50 million for fiscal year 1968. The committee further suspended the operation of the matching provision in existing law through fiscal year 1968.

(f) Public Law 89-10 is amended to include a new title for the education of handicapped children; $150 million for this purpose was authorized for fiscal year 1967 and $250 million for the fiscal year ending June 30, 1968. A State's allotment for this program is based upon a population formula of the number of children in

the age groups 3 to 21 to finance programs designed to meet the special educational and related needs of handicapped children throughout the State which are of sufficient size, scope, and quality as to give reasonable promise of substantial progress toward meeting those needs. It is a State plan program which includes provisions for the acquisition of equipment and, where necessary, the construction of school facilities. A National Advisory Committee on Handicapped Children is established to advise the Commissioner on programs for the handicapped administered by the Office of Education. In addition, a bureau for the education and training of the handicapped is established within the Office of Education to administer this and other programs of education, training, or research for the handicapped.

(g) Title VI of the Elementary and Secondary Education Act is redesignated as title VII and is amended by adding a new section to provide for the financing of a program of dissemination of educational research findings; $1,500,000 is authorized for this purpose for fiscal year 1967 and $2 million for fiscal year 1968.

II. AMENDMENTS TO IMPACTED AREAS LEGISLATION

Title II of S. 3046 is concerned with amendments to impacted areas legislation, Public Laws 815 and 874. The committee did not accept the administration recommendation to curtail this program; rather, it broadened the eligibility for these programs by a series of amendments and in the process clarified existing law to permit more efficient administration of the program through the elimination of inequities. (a) For Public Law 874 that

(1) the present 3-percent-eligibility requirement be modified to read 3 percent or 1,000 children whichever is the lesser;

(2) the administration amendment for determining local contribution rate be accepted other than the elimination of the National and State average options but delayed the effective date until July 1, 1967;

(3) administration amendments providing that children of men in the uniformed services shall be deemed to reside with a parent employed on Federal property for the purpose of computation of the benefits to the local school district;

(4) an amendment relating to payments for children moving into an area as a result of an international boundary relocation be added to existing law;

(5) all Federal payments be deducted from gross entitlements on the same basis and that deductions because of other Federal payments which amount to $1,000 or less are to be disregarded;

(6) the statute be amended so that an appropriation for one fiscal year be available through the following year;

(7) the act be amended to make further provision in the case where a local educational agency cannot or will not educate children living on Federal property;

(8) the act be amended to extend to all property the provision which permits Federal property used for housing to be counted as Federal property for 1 year after transfer to the United States; and

(9) an amendment which would repeal the exclusion of certain properties from the definition of Federal property. (b) for Public Law 815, amendments which, if enacted would(1) extend the temporary provisions of the act for 2 years; (2) reduce the percentage increase required for eligibility and lengthen the increase period to 4 years;

(3) reduce the non-Federal growth requirement to a 1%% per year requirement;

(4) extend the time for determining the number of unhoused children for 2 years beyond the increase period;

(5) make permanent those provisions of the statute relating to Indians living on reservations;

(6) provide that children who have a parent in the uniformed services will be considered as federally connected;

(7) make payments on the basis of children moving into an area as a result of an international boundary relocation;

(8) provide for transfer of title to facilities located on Federal properties to the local educational agency where it is in the Federal interest to do so;

(9) make further provisions in the case where a local educational agency cannot or will not educate children living on Federal property;

(10) provide an amendment which would repeal the exclusion of certain properties from the definition of Federal property;

(11) provide that minimum school facilities be usable by handicapped persons; and

(12) include American Samoa in the definition of a State.

III. ADULT EDUCATION

Title III of S. 3046 makes provision for transferring to the Commissioner of Education authorities he now exercises on delegation from the Director of the Office of Economic Opportunity for adult basic education and it repeals title II-B of the Economic Opportunity Act.

If enacted, as recommended by the committee, title III of S. 3046 would become the Adult Education Act of 1966. The purpose of this title is to provide authority to encourage and expand basic educational programs for adults to enable them to overcome English language limitations, to improve their basic education in preparation of occupational training and more profitable employment and to become more productive and responsible citizens.

Forty million dollars will be authorized to be appropriated for the 1967 fiscal year and $60 million is authorized for fiscal year 1968. Not less than 10 percent nor more than 20 percent of the sums appropriated are reserved for special projects and teacher training, the remainder of the sums to be allotted among the States upon a population basis of the number of adults who have completed not more than five grades of school. These sums would be expended for programs under a State plan which affords assurance of substantial progress toward carrying out the purposes of the Adult Education Act.

This title of the bill further provides for an Advisory Committee on Adult Education to advise the Commissioner of Education in the preparation of general regulations and with respect to policy matters.

Provisions contained in the title prohibit Federal control of the program and the establishment of local adult education advisory committees is encouraged. No grant under this title may be made for any educational program, activity or service relating to sectarian instruction or religious worship or that which is provided by a school or department of divinity,

[In thousands of dollars)

III. Adult education (Hartke amendment).