alteration or renovation, the grantee and such contract shall be subject to compliance with all the requirements of Executive Order 11246, 30 F.R. 12319 (Sept. 24, 1965), and regulations thereunder, relating to nondiscrimination in employment by the contractor, unless such contract is otherwise exempt pursuant to the provisions of said order or regulations thereunder.

[31 F.R. 9500, July 13, 1966, as amended at 36 F.R. 18306, Sept. 11, 1971]

§ 59a.23

Accounting for equipment, library supplies or other materials. Expenditures of grants funds for movable or fixed equipment, library supplies or other materials may be charged to grant funds as direct costs to the extent they are required for accomplishment of the purposes for which the grant was made and may be retained by the grantee upon termination of the grant: Provided, That (a) no charge for depreciation, amortization or other use shall be made against any existing or future Federal grant or contract, and (b) if within the period of their useful life they are transferred by sale or for use otherwise for purposes inconsistent with the grant purposes, the fair market value at the time of such transfer shall be payable to the United States, or if required by the Secretary, title shall be transferred to the United States.

[31 F.R. 9500, July 13, 1966, as amended at 36 F.R. 18306, Sept. 11, 1971] § 59a.24 Interest.

Any interest earned through any deposit or investment by the grantee of the payments under this subpart shall be paid to the United States as such interest is received by the grantee. § 59a.25 Project net income.

Except as may be otherwise provided pursuant to § 59a.19 with respect to income from patentable inventions or discoveries, any grant award under this subpart is subject to such conditions as to assure return to the United States of its equitable share of any net income derived by the grantee from the activity supported by the grant.

§ 59a.26 Final settlement.

There shall be payable to the United States in final settlement the total of any amounts not accounted for pursuant to § 59a.20 and any amounts provided for under §§ 59a.23, 59a.24, and 59a.25. Such total sum shall constitute a debt

(a) All terms not defined herein shall have the same meaning given them in the Act:

(b) "Act" means the Public Health Service Act, as amended;

(c) "Surgeon General" means the Surgeon General of the Public Health Service and any other officer or employee of the Service to whom he delegates the authority involved, except that as used in § 59a.37 the term shall mean only the Surgeon General, the Deputy Surgeon General, or an Acting Surgeon General as provided in section 205 of the Act, as amended (42 U.S.C. 206);

(d) "Geographic area" means an area composed of any part or parts of any one or more states that forms an academically and profesionally integrated region, taking into consideration such factors as location and extent of communication facilities and systems, presence and distribution of educational and medical and health facilities and programs, and other activities which, in the opinion of the Surgeon General, justify the establishment and operation of a regional medical library.

(e) "Alteration" shall mean, for the purposes of this subpart, minor modifications required for the installation or rearrangement of equipment or resources,

provided that such cost may not exceed $50,000.

(f) "Annual operating expenses" means, with respect to a library which has been in operation for less than 3 years an amount equal to the average annual operating expense of the years, if any, of operation, as modified by, or when there has been no operation determined by reference to, such expense of libraries of institutions of similar size and function, as determined by the Surgeon General.

(g) "Modify and increase" means the use of Federal funds or materials to supplement rather than supplant non-Federal funds available for library resources and services.

§ 59a.33 Eligibility.

In order to be eligible for a grant, the applicant must:

(a) Meet the criteria specified in section 398 of the Act, and

(b) Be located in a State.

§ 59a.34 Application.

(a) An application for a grant shall be submitted in such manner as the Surgeon General may prescribe;

(b) The application shall be executed by an individual authorized to act for the applicant and to assume on behalf of the applicant all of the obligations specified in the terms and conditions of the grant including those contained in these regulations;

(c) In addition to any other pertinent information which the Surgeon General may require, the applicant shall submit a description of a program to provide health sciences informational services for the geographic area in which it is located in sufficient detail clearly to identify the need for such services, the adequacy of the applicant's existing or proposed facilities and resources to undertake to provide them, the size and nature of the population to be served, the region to be served, cooperative arrangements in effect, or proposed, with other qualified institutions, organizations or agencies, and the justification for the amount of funds requested. § 59a.35

Award.

General. The Surgeon General, with the counsel and advice of the Board in each case, shall award a grant to those applicants whose arrangements and proposed services will in his judgment best promote the purpose of the Act.

§ 59a.36 Nondiscrimination.

Attention is called to the requirements of Title VI of the Civil Rights Act of 1964 (42 U.S.C. 2000d et seq.) which provides that no person in the United States shall, on the ground of race, color, or national origin, be excluded from participation in, be denied the benefits of, or be subjected to discrimination under any program or activity receiving Federal financial assistance (sec. 601; 42 U.S.C. 2000d). A regulation implementing such Title VI has been issued by the Secretary of Health, Education, and Welfare with the approval of the President (45 CFR Part 80). Grants under this subpart provide Federal financial assistance subject to Title VI of the Civil Rights Act and the regulation promulgated pursuant thereto.

§ 59a.37 Terms, conditions, and assur

ances,

In addition to any other terms, conditions, and assurances required by law or imposed by the Surgeon General, each grant shall be subject to the following terms, conditions, and assurances to be furnished by the applicant. The Surgeon General may at any time approve exceptions where he finds that such exceptions are not inconsistent with the Act and the purposes of the program.

(a) Use of funds. The grantee will use grant funds solely for the purposes for which the grant was made. Changes may be made only in accordance with procedures established by the Surgeon General.

(b) Service undertakings. (1) The grantee will agree to modify and increase its library resources so as to be able to provide supportive services to other health sciences informational activities.

(2) Qualified persons and organizations shall be entitled to free loan services, and to the extent grant funds are used to provide photo duplicated or facsimile copies of biomedical materials, the copies shall be made available without charge to such persons or organizations. The qualification of persons and organizations for the services provided hereunder shall be determined in accordance with the policies or principles of operation of the grantee, subject to such review and approval as the Surgeon General may require.

(c) Inventions ΟΤ discoveries. Any grant award hereunder is subject to the regulations of the Department of Health,

Education, and Welfare relating to inventions and patents (45 CFR Parts 6 and 8, as amended). Such regulations shall apply to any activity for which grant funds are in fact used whether within the scope of the program as approved or otherwise. Appropriate measures shall be taken by the grantee and by the Surgeon General to assure that no contracts, assignments, or other arrangements, inconsistent with the grant obligation are continued or entered into and that all personnel involved in the supported activity are aware of and comply with such obligation. Laboratory notes, related technical data, and other information pertaining to inventions or discoveries shall be maintained for such periods, and filed with or otherwise made available to the Surgeon General or those he may designate at such times and in such manner as he may determine necessary to carry out such Department regulations.

(d) Records and reports. The grantee shall maintain such records and file with the Surgeon General such progress and other reports as the Surgeon General may prescribe, and shall maintain adequate and separate fiscal records and accounts for all grant funds. No such records shall be destroyed or otherwise disposed of within 3 years after termination of the grant unless a shorter or longer period of time is, respectively, permitted or required by the Surgeon General as to all, or particular types of records.

(e) Inspections and audits. The filing of any application for a grant shall constitute the consent of the applicant to inspections at reasonable times by representatives of the Public Health Service and such other persons as the Surgeon General may designate, or as may otherwise be provided by law, of the facilities, equipment and other resources of the applicant and to interviews with principal staff members to the extent such resources and personnel will be, or are, involved in carrying out the purposes of the grant. In addition, the acceptance of any grant award shall constitute the consent of the grantee to inspections and fiscal audit by such persons of the supported activity and of progress and fiscal records relating to the approved project. § 59a.38 Termination.

(a) Termination by the Surgeon General. Any grant award may be revoked or terminated by the Surgeon General

in whole or in part at any time whenever he finds that in his judgment the grantee has failed in a material respect to comply with requirements of the Act and the regulations of this part. The grantee shall be promptly notified of such finding in writing and given the reasons therefor. Within 10 days after receipt of such notice, or such longer period as the Surgeon General may allow, the grantee may request a reconsideration of such termination and shall be afforded an opportunity to present, orally or in writing, such information or argument as may be pertinent. If the Surgeon General reaffirms the termination, the grantee may request that the entire record be reviewed by the Secretary, whose decision shall be final.

(b) Termination by the grantee. A grantee may terminate or cancel its participation in the regional medical libraries program upon reasonable notice to the Surgeon General in writing setting forth the reasons for such termination or cancellation.

(c) Accounting. Upon any termination or cancellation the grantee shall account for all expenditures and obligations charged to grant funds: Provided, That to the extent the termination is due in the judgment of the Surgeon General to no fault of the grantee, credit shall be allowed for the amount required to settle at costs, demonstrated by evidence satisfactory to the Surgeon General to be minimum settlement costs, any noncancellable obligations incurred prior to receipt of notice of termination. § 59a.39 Expenditures by grantee.

(a) Allocation of costs. Except as may otherwise be provided by or pursuant to the regulations of this subpart, the allocation of expenditures by a grantee as between direct and indirect costs shall be in accordance with generally accepted and established accounting practices and in accordance with the same policies and methods that the grantee applies to all its related activities whether self-sponsored or supported by contracts or grants.

(b) Direct costs; general. Funds granted for direct costs may be expended by the grantee for personal services, rental of space, library materials, supplies, purchase or rental of equipment, training, publication, alterations of physical facilities, and other items of necessary cost required to carry out the purposes of the grant. The Surgeon Gen

eral may issue rules, instructions, interpretations, or limitations supplementing the regulations of this subpart and prescribing the extent to which particular types of expenditures may be charged to grant funds.

(c) Direct costs; personal services. The costs of personal services are payable from grant funds substantially in proportion to the time the individual devotes to carrying out the purposes of the grant. In such proportion, such costs may include all direct costs incident to such services, such as salary during vacations and retirement and workmen's compensation charges, in accordance with the policies and accounting practices consistently applied by the grantee to all the activities.

(d) Direct costs; notification costs. Costs required to assure effective dissemination of information relative to the resources of and services provided by the regional library within its geographic area may be charged to the grant.

§ 59a.40 Payments.

The Surgeon General shall, from time to time, make payments to a grantee of all or a portion of the grant award, either in advance or by way of reimbursement, for costs properly chargeable to grant funds.

59a.41 Accounting for materials.

Expenditures for materials such as books and periodicals, library, office, and other supplies, equipment and other necessary items, may be charged to grant funds as direct costs only to the extent they are required during the grant period to accomplish the purposes for which the grant was made. Any such materials (excluding expendable supplies or materials within such limitations as the Surgeon General may prescribe) on hand on the date of termination, or on expiration of a grant period, except where another grant has been awarded to the grantee and except as otherwise prescribed by the Surgeon General, shall be accounted for by one or a combination of the following methods:

(a) Retention for other medical library uses. Such materials may be used, without adjustment of accounts, for other health sciences informational purposes, and no other accounting for such materials shall be required: Provided, That (1) during such period of use no charge for depreciation, amortization or for other use of the materials shall be

made against any existing or future Federal grant or contract, and (2) if within the period of their useful life the materials are transferred for other purposes by sale or otherwise for use, the fair market value at the time of transfer shall be payable to the United States.

(b) Sale or other disposition; crediting of proceeds or value. Such materials may be sold by the grantee and the net proceeds of sale credited to the grant account, or they may be used or disposed of in any manner by the grantee by crediting to the grant account their fair market value on the termination date. To the extent materials purchased from grant funds have been used for credit or "trade-in" on the purchase of new materials, the accounting obligation shall apply to the same extent to such new materials.

(c) Transfer to the United States. To the extent the Surgeon General so requires or approves, title to such materials will be transferred to the United States.

Grantees may publish materials relating to their regional medical library without prior review, providing such publications carry a footnote acknowledging assistance from the Public Health Service and indicating that findings and conclusions do not necessarily represent the views of the Service.

§ 59a.43 Copyrights.

Where the grant-supported activity results in copyrightable materials, the author is free to copyright such material but the Public Health Service reserves a royalty-free, nonexclusive, irrevocable license to use, reproduce and authorize use and reproduction of use of such material.

of any net income derived by the grantee from the activity supported by the grant. § 59a.46 Final settlement.

There shall be payable to the United States as final settlement the total of any amounts not accounted for pursuant to $59a.40 and any other amounts due under this subpart. The total amount

shall constitute a debt owed by the grantee to the United States and if not paid to the United States shall be recoverable from the grantee or its successors by setoff or by such other procedures or action as may be deemed necessary to protect the interests of the United States.

amended, sec. 8, 77 Stat. 400; 42 U.S.C. 216, 1857g; secs. 301, 402, 58 Stat. 691, as amended, 707, secs. 412, 422, 62 Stat. 464, 598, sec. 433, 64 Stat. 444, as amended, sec. 308, 74 Stat. 364, sec. 444, 76 Stat. 1073, sec. 3, 77 Stat. 394, secs. 394, 395, 79 Stat. 1062; 42 U.S.C. 241, 282, 287a, 288a, 289c, 242f, 289g, 1857b, 280b-4, 280b-5.

SOURCE: The provisions of this Subpart A appear at 31 F.R. 12096, Sept. 16, 1966, unless otherwise noted.

§ 61.1

Definitions.

As used in this part:

(a) "Continuation award" is an award made by the Surgeon General, within the period of support recommended by a fellowship committee, without necessity for further action by the committee.

(b) "Noncitizen national” means any person who, though not a citizen of the United State, owes permanent allegiance to the United States.

(c) "Regular fellowship" means an award to support activity not requiring performance of services for the Public Health Service.

(d) "Surgeon General" means the Surgeon General of the U.S. Public Health Service or his delegate.

(e) "Continental United States" does not include Hawaii or Alaska.

§ 61.2 Applicability.

The regulations in this subpart apply to the establishment, award, and operation of all regular fellowships awarded under the Public Health Service Act and the Clean Air Act.

§ 61.3 Purpose of regular fellowships. Regular fellowships are provided to encourage and promote:

(a) Research and training for research relating to (1) the physical and mental diseases and impairments of man, (2) the organization, provision, and financing of health services, (3) the causes, prevention, and control of air pollution, and (4) medical library and related health sciences and communication of information.