In the Vocational Education Amendments of 1968, Congress authorized the use of federal vocational education funds for contracting with private vocational training institutions for vocational instruction. A study was conducted to determine the extent to which various state statutes and regulations can be construed to authorize or prohibit such contracting in each of the fifty states, the District of Columbia, and the outlying American territories. Information was collected from the following sources: federal law and regulations, state statutes and regulations, and fiscal year 1977 State Plans for Vocational Education. A profile was then developed for each state and outlying area. Although the study was limited by its neglect of factors such as the effect of judicial decisions on authorizing or prohibiting such contracting, it was able to draw the following conclusions: (1) federal statutes and regulations permit such contracts when reasonable justification for them exists; (2) state laws and regulations vary from granting expressed authority to only implying such authority; and (3) a small number of state constitutions restrict the use of public funds for such contracts; and (4) forty-four state plans provide for such contracts despite existing state laws. Also reviewed in the study were the state laws governing the licensing and minimum standards for private vocational training sources. (The appendix contains the state profiles and is organized into six categories based on the clarity of the authorization or prohibition of such contracts.) (ELG)