developed under §§ 166.12, 166.13 and Appendix B of the regulations contained in 45 CFR Part 166. The value to be assigned to each of the applicable criteria shall be the responsibility of the State.

(a) General criteria. It is recommended that the following general criteria be utilized in evaluating both special projects and teacher training applications:

(1) Objectives are sharply defined, clearly stated, capable of being attained by the proposed procedures, and capable of being measured;

(2) Proposed plan of operation is sound; (3) Proposed activity is relevant to the priority or needs addressed;

(4) Proposed activity is needed in the area to be served by the applicant;

(5) Designated project personnel possess qualifications and experience to adequately carry out project activities;

(6) Facilities and other resources are adequate to carry out the objectives of the project;

(7) Size, scope, and duration of the project would secure productive results, and the estimated cost is reasonable in relation to these results;

(8) Potential for replication and utilization of the results of the project in other adult education programs and the provisions for disseminating these results are judged to be adequate;

(9) Provisions are included for an adequate evaluation of the project's effectiveness and for determining the extent to which its objectives are accomplished.

(b) Special projects. In evaluating applications for special projects, it is suggested that the State educational agency give consideration to such factors as whether and to what extent the project:

(1) Involves the use of innovative methods, systems, materials, or programs and which may have national significance and will serve residents of the State or be of special value in promoting effective programs under the Act;

(2) Is to be carried out in cooperation with other federally assisted State, or local programs which have unusual promise in promoting a comprehensive or coordinated approach to the problems of persons with educational deficiencies;

(3) Is designed to address critical educational needs which have been identified as State or national priorities for adult education;

(4) Has unusual promise for the development of concepts, practices, and techniques which can be adapted or adopted elsewhere in establishing or improving adult education;

(5) Is related to and is carried out in cooperation with appropriate training activities whether or not assisted under the Act;

(6) Will result in the development of materials and methods which may be of value in increasing the effectiveness of adult education programs;

(7) Provides for cooperation and coordination with business and industry, labor and other agencies, institutions, and community education programs and other related programs, as identified in § 166.13 of the regulations, in order to strengthen the project and prevent duplication of effort;

(8) Provides, where appropriate, for cooperation and continuation by the local educational agencies and other public and private agencies; and

(9) Will strengthen the adult education delivery systems within the State.

(c) Teacher training. In evaluating applications for training grants, it is suggested that the State educational agency give consideration to such factors and whether as to what extent the project

(1) Is consistent with the objectives set forth in the annual program plan for the development and training of adult education personnel;

(2) Will include training in the utilization and development of innovative methods, systems, materials, or programs;

(3) Will meet local needs for adult education personnel;

(4) Is designed to address critical training needs which have been identified as State or national priorities for adult education;

(5) Provides for periodic, systematic, and objective reviews and evaluations of the project;

(6) Is coordinated with appropriate special experimental demonstration projects which may be operating in the geographic area served by the applicant;

(7) Is coordinated with adult education programs being sponsored in the State in which the applicant is located or with a consortium of the States from which trainees are drawn or to which trainees may be expected to return;

(8) Is to be carried out in cooperation with other federally assisted, State, or local programs;

(9) Provides for cooperation and coordination with business and industry, labor and other agencies, as identified in § 166.13 of the regulations, to strengthen the project and prevent duplication;

(10) Provides for cooperation and continuation by the local educational agencies and other public and private agencies; and

(11) Includes criteria for eligibility for participation in the project.

(20 U.S.C. 1208; 45 CFR 166.24)

SEC. 5.8 Submission of applications. The State educational agency should establish policies and procedures to regulate the submission of applications for special projects

and teacher training under section 309 of the Act. Such applications should be submitted in accordance with State laws, regulations, policies, and procedures. It is recommended that the State educational agency:

(a) Develop and implement procedures which will ensure that information concerning the availability of Federal funds for special projects and teacher training is disseminated to all segments of the adult education community in all areas of the State;

(b) Issue a public announcement concerning the availability of funds for special projects and teacher training programs which requests applications that address current statewide adult education program priorities, which have been determined in accordance with the requirements of § 166.25 of the regulations;

(c) Establish and announce closing date for receipt of applications for consideration for funding during the current fiscal year;

(d) Provide forms to be used in submitting applications for special projects and teacher training programs under section 309 of the Act;

(e) All proposals submitted to the State educational agencies for approval and funding should contain at least the signature of the chief executive officer of the organization submitting the proposal.

(20 U.S.C. 1208; 45 CFR 166.24)

SEC. 5.9 Application review panel. The State educational agency may wish to establish one or more panels to review and evaluate applications submitted under section 309 of the Act. In the establishment of any such review panel, it is suggested that the State educational agency take into consideration the following factors:

(a) The establishment of criteria for the selection of panel members;

(b) The establishment of procedures to assure that each application is reviewed by at least three panel members; and

(c) The identification of subject-matter areas to be represented by panelists to assure that the qualifications of the panelists are relevant to program priorities. It is recommended that panel membership include at least one representative of each of the following: the State agency, the State advisory council on adult education (if such council exists); agencies representing institutionalized persons and persons of limitedEnglish speaking ability, and agencies representing community school programs. Such panel membership should also include women, minority and ethnic groups which reflect the general population of the State. (20 U.S.C. 1208; 45 CFR 166.24)

SEC. 5.10 Selection of participants for teacher training projects.

(a) The State educational agency should establish criteria to be used to select participants of teacher training programs. Such criteria should consider the objectives of the national priorities (which are published periodically in the FEDERAL REGISTER and appear as Appendix B to the regulations (45 CFR Part 166), and on the priorities and objectives set forth in the annual program plan for the State adult education program. Such criteria should be designed to assure that, among other things, participants are engaged, or are preparing to engage, as personnel in adult education programs designed to carry out the purposes of the Act. The criteria to be used in the final selection of participants from among the applicants should be clearly stated in the application materials.

(b) In the development of selection criteria, consideration should be given to the fact that no person should be declared ineligible to participate in the program solely for the reason that he or she does not possess an academic degree. Such persons should include those who are engaged, or preparing to engage as teachers, guidance counselors, administrators, or other support personnel in adult education programs designed to carry out the purposes of the Act. (20 U.S.C. 1208; 45 CFR 166.24)

SEC. 5.11 Disposition of applications.

(a) It is recommended that the State educational agency establish and describe in the annual program plan the procedures to be used for the disposition of project applications.

(b) Each applicant who submits an application should be advised in writing within a reasonable period of time as to whether or not the project will be funded.

(i) Each awardee should receive a properly executed award document which contains appropriate financial and administrative information as well as any general and special terms and conditions which pertain to the project;

(ii) Each unsuccessful applicant should be notified of the reasons why the application was not selected for funding.

(20 U.S.C. 1208; 45 CFR 166.24)

SEC. 5.12 Hearings.

The State educational agency should establish an Appeal Board and set forth in the annual program plans the procedures by which any applicant or recipient aggrieved by the final action of the State educational agency may request a hearing under the provisions of section 425 of GEPA.

(20 U.S.C. 1208; 45 CFR 166.24)

SEC. 5.13 Program evaluation procedures. (a) Each program or project application should include an evaluation plan for the

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(a) It is recommended that the annual program plan set forth the policies and procedures to be used by the State educational agency for obtaining reports from recipients of Federal funds to conduct special projects and training under the authority of section 309 of the Act. Such project reports should provide all information that is needed by the State educational agency to comply with the requirements of § 166.52 of the regulations, Subparts P and Q of 45 CFR 100b, and section 424 of the General Education Provisions Act.

(b) Requested reports. It is recommended that the State educational agency obtain atleast the following reports from each recipient of section 309 funds.

(1) Final report. This report should be submitted to the State educational agency 30 days after the expiration or termination of the project and should contain: (i) A financial status report, in accordance with Subpart P of 45 CFR Part 100b, (ii) a report of any products developed by the project, and (iii) a performance report acceptable to the State educational agency. The performance report should include: (1) A summary of the accomplishments which relate to the objectives outlined in the scope of work (as well as a lack of accomplishments in the case of grants, and the reasons therefor); (2) a statement of the findings, recommendations, and conclusions; and (3) a brief abstract which describes the methodology and operation of the program.

(2) Special reports. (i) The grantee should submit project reports to the State agency in accordance with the terms and conditions of the award document and upon request from the State educational agency;

(ii) For teacher training projects, it should be the responsibility of the project director to develop brochures which describe the project activity, as well as appropriate application forms in order to provide potential participants with sufficient information to submit applications for participation in the project.

(3) Independent evaluation. The State educational agency should develop policies and procedures for obtaining copies of any independent evaluation of the project (including its operational objectives and conclusions). A copy of such evaluations should be forwarded to the Clearinghouse on Adult Education.

(c) It is recommended that the State educational agency indicate how the results of the project will strengthen the State grant program. This critique should be submitted along with the final report of the project to

the U.S. Commissioner of Education, as required by § 166.52(d)(1) of the regulations.

(d) It is recommended that final reports of projects funded under the Act be made available to the general public through the facilities of the Education Resources Information Center (ERIC).

(20 U.S.C. 1208; 45 CFR 166.52)

SEC. 5.15 Dissemination of materials produced by projects.

The State educational agency should develop policies and procedures for obtaining copies of all materials that are produced by projects which are funded from its Federal allotment under the authority of section 309 of the Act. It is recommended that the State educational agency include in each award document issued under section 309 of the Act the requirements of the grantee regarding the dissemination of any products produced by the project (e.g., surveys, films, publications, and other materials).

(20 U.S.C. 1208; 45 CFR 166.30) [40 FR 22230, May 21, 1975]

Subparts A-G [Reserved]

Subpart H-Procedures for the Limitation, Suspension, or Termination of Institutional Eligibility for the HEAL Program or Programs under Title IV of the Higher Education Act of 1965

§ 168.71 Purpose and scope.

(a) This subpart establishes rules for the limitation, suspension, or termination of the eligibility of an otherwise eligible institution participating in the HEAL program or any or all of the following student assistance programs authorized by title IV of the Higher Education Act of 1965: The basic educational opportunity grant, supplemental educational opportunity grant, guaranteed student loan, college workstudy, and national direct student loan programs. These rules apply to an institution which violates any provision of a program statute or any regulation, special arrangement, agreement or limitation prescribed under those programs. These rules also apply to an institution participating in the guaranteed student loan program which comes within the terms of 45 CFR 177.66.

(b) This subpart does not apply to a determination (1) that an institution fails to meet the statutory definition set forth in section 737(1) of the Public Health Service Act, (2) that an institution of higher education fails to meet the statutory definition set forth in sections 435(b), 491(b)(3), or 1201(a) of the Higher Education Act of 1965, or (3) that a vocational school fails to meet the statutory definition set forth in section 435(c) of the Higher Education Act of 1965.

(c) This subpart does not apply to administrative action by the Department of Health, Education, and Welfare based on any alleged violation of title VI of the Civil Rights Act of 1964, which is governed by 45 CFR Parts 80 and 81; title IX of the Education Amendments of 1972, which is governed by 45 CFR Part 86; or the Family Educational Rights and Privacy Act of 1974 (section 438 of the General Education Provisions Act,

as

"Designated OE official" means an official of the U.S. Office of Education, to whom the Commissioner has delegated responsibilities indicated in this subpart.

"Funds" means any money, commitments to provide money and commitments of insurance or reinsurance provided under the HEAL program or any or all title IV programs covered under his subpart to an institution or to students enrolled and attending an institution.

"HEAL program" means the health education assistance loan program. The governing statutory provisions are in title VII, part C, subpart I of the Public Health Service Act, and the governing regulatory provisions are in 45 CFR Part 126.

"Institution" means (1) an institution as defined in section 737(1) of the Public Health Service Act, (2) an institution of higher education, (3) a vocational school, or (4) with respect to students who are nationals of the United States, an institution outside the United States which is comparable to an institution of higher education or to a vocational school and which has been approved by the Commissioner for purposes of participation in title IV programs covered under this subpart.

(20 U.S.C. 1088f-1(e); 1085(a))

"Institution of higher education" means an institution of higher education as defined in sections 435(b), 491(b), or 1201(a) of the Higher Education Act of 1965.

(20 U.S.C. 1085(b), 1088(b), 1141(a))

"Limitation" means the continuation of an institution's eligibility for the HEAL program or any or all title IV programs covered under this subpart subject to compliance with special

conditions which the Commissioner has set as a result of a decision in a limitation or termination proceeding.

"Suspension" means the removal of an institution's eligibility for the HEAL program or any or all title IV programs covered under this subpart for a period of time.

"Termination" means the unqualified removal of an institution's eligibility for the HEAL program or any or all title IV programs covered under this subpart for an indefinite period of time.

"Title IV" means title IV of the Higher Education Act of 1965. The programs under that title that are covered under this subpart, and the governing statutory and regulatory provisions, are as follows:

Program

gency action to withhold funds from an institution or its students and to withdraw the authority of an instutition to obligate funds under the HEAL program or any or all title IV programs covered under this subpart if the designated OE official

(1) Receives information which the official believes to be reliable that an institution is in violation of applicable laws, regulations, special arrangements, agreements, or limitations,

(2) Determines that such action is necessary to prevent the likelihood of substantial loss of funds to the Federal Government or to the students at the institution, and

(3) Determines that the likelihood of loss outweighs the importance of following the procedures set forth in this subpart for suspension, limitation, or termination.

(b) The designated OE offical begins an emergency action by notifying the institution, by certified mail with return receipt requested, of the action and the basis on which it is taken. The