This report, an examination of the administration of the federal Juvenile Justice Act from 1974 to the present, outlines the findings and recommendations of the National Advisory Committee for Juvenile Justice and Delinquency Prevention. Following a statement of the proposed new direction in delinquency prevention, which focuses on the serious, violent, chronic delinquent, the four major findings of the committee are discussed: (1) a small number of youths account for a large proportion of serious juvenile crime; (2) since 1974 very little federal money has been directed at controlling the chronic, serious delinquent; (3) the wording of the Juvenile Justice Act diverts federal money to noncriminal aspects of delinquency; and (4) the 1974 act implemented a view of delinquency prevention not consistent with what is now known. The principle recommendations of the committee are detailed including the establishment of a new federal policy focusing on serious juvenile offenders by providing research, dissemination, and training; encouraging innovation and diversity; assisting states and local governments in dealing with delinquency problems; and including all juvenile offenders in the federal initiative, even those tried as adults. (MCF)