(d) Prior to the submission to the Commissioner of any State plan as part of an application under this part, the State agency shall afford the Governor of such State an opportunity to comment on the relationship of such State plan to comprehensive and other State plans and programs. The Governor shall be afforded a period of not less than 45 days in which to make such comments, or, if the Governor makes no comments, a statement to that effect shall be attached to such plan when the same is submitted to the Commissioner.

(20 U.S.C. 246(a)(1); OMB Circular No. A95)

§ 156.5 Application for reimbursement.

(a) Application for reimbursement under this part shall be made in accordance with the applicable provisions of subparts B and C of part 100a of this chapter.

(20 U.S.C. 246)

(b) Applications for reimbursement under this part and section 842 of the Act for costs incurred or to be incurred in the development or administration of the State plan shall be submitted to the Commissioner. Applications for reimbursement may be submitted for plans developed prior to or subsequent to the effective date of section 842 of the Act or for a plan the State proposes to develop. If reimbursement is desired for a plan which has been developed, then the plan as developed shall be submitted to the Commissioner. If reimbursement is desired for a plan the State proposes to develop, then the State shall submit a proposal to develop a plan. The proposal shall set forth the goals, objectives, and scope of the plan to be developed and describe how such plan will address the major questions of school finance equity as considered in this part and section 842 of the Act.

(20 U.S.C. 246; Cong. Record, daily edition, May 20, 1974, S. 8505)

(c) An application for reimbursement must be submitted no later than 90 days following submission of the plan or the proposal to develop a plan.

(d) An application for reimbursement shall set forth a detailed account of costs incurred or a schedule of reimbursements for costs to be incurred. In the latter case, reimbursements shall not be made more often than monthly. (20 U.S.C. 246)

(e) If a State plan rejects, or is intended to reject, any of the guidelines developed pursuant to section 842(a)(3) of the Act and as set forth in subpart B of this part, then the applicant shall set forth the reasons for each rejection. Such statements in support thereof shall justify any rejection of these guidelines on a substantive basis and shall give detailed reasons therefor.

(20 U.S.C. 246(b); Sen. Report No. 93-763, at p. 104 (1974))

(f) An application for reimbursement shall describe the manner in which the applicant coordinated and involved, or proposes to coordinate and involve, appropriate State agencies or branches of State government, local educational agencies, and other interested parties in the development or administration of the plan. (20 U.S.C. 246)

§ 156.6 Entitlement.

(a) The entitlement of each State shall be determined on the basis of a straight-line formula such that the entitlement of the most populous State shall be $1,000,000, the entitlement of the least populous State shall be $100,000, and the entitlement of each other State shall fall between these amounts based on the ratio of that State's population to the population of the Nation as a whole.

(b) In the event that the funds appropriated for this section are insufficient to meet the entitlement as calculated above, then the above procedure shall be used to recalculate the entitlements with the exception that the entitlement of the most populous State shall be reduced and the entitlement of each other State shall be recalculated based on this revised limit. Subject to the provisions of section 842(c)(1) of the Act, the entitlement of the most populous State shall be reduced to a

level so that the sum of the recalculated entitlements for all States equals the appropriated amount.

(c) If additional amounts become available making reimbursements under Section 842 of the Act following a recalculation of entitlements under paragraph (b), such entitlements (as reduced by such recalculation) shall be increased (in accordance with such additional amounts) on the same basis that they were reduced.

(d) After a determination regarding eligibility for reimbursement has been made for all applications timely filed under this part, any available appropriations which remain unallocated shall be ratably distributed among approved applicants for the purpose of satisfying the maximum entitlement provided for each State under Section 842(c)(1) of the Act, except that no State may receive an amount in excess of such maximum entitlement.

(20 U.S.C. 246(c)(1))

§ 156.7 State plan requirements.

A State plan shall be submitted to the Commissioner not later than July 1, 1977, to be eligible for cost reimbursement under section 842.

(20 U.S.C. 246(a)(1))

§ 156.8 Review and disposition of applications.

(a) Upon receipt of an application for reimbursement under this part, the Commissioner will review such application for conformity with the regulations and guidelines set forth under this part and the provisions of section 842 of the Act. In reviewing any such application, the Commissioner shall have the discretion to obtain the review of a panel of experts. The Commissioner may also consult with the applicant at any time concerning the sufficiency of the application.

(b) After reviewing the application, the Commissioner will determine whether the applicant may be reimbursed and if so, the costs allowable for such reimbursement, and will notify the applicant in writing of such determination.

(c) If an adverse determination as to the application is made by the Com

missioner, the applicant may request a meeting with the Commissioner within 30 days of notice of such determination to discuss the application.

(20 U.S.C. 246)

Subpart B-Equity Guidelines

§ 156.10 Eligibility of plans.

The Commissioner will, in determining the eligibility of plans for reimbursement submitted under the provisions of section 842 of the Act, apply the guidelines set forth in §§ 156.11-17. While a State plan may reject any of these guidelines and still be considered eligible for reimbursement, a State plan cannot in substantial part reject the principles set forth in section 842(a)(1) of the Act.

(20 U.S.C. 246; Sen. Rpt. No. 93-763 at p. 103 (1974))

§ 156.11 Adequate educational programs.

In the development of the financial assistance plan, the State shall determine that level of educational programs, supportive services and facilities in such State which is adequate to assure equal educational opportunity for all pupils enrolled in the local educational agencies of the State.

(20 U.S.C. 246)

§ 156.12 Cost variations.

In determining the relative financial need of local educational agencies, the financial assistance plan,

(a) shall be designed to identify those pupils with varying and greater educational needs and take these needs into account in amounts provided and expended for appropriate educational programs, supportive services, and facilities; and

(b) shall take into account any variations among such local agencies in the costs of providing equivalent educational programs, supportive services, and facilities which might be associated with such factors as sparsity or density of population, cost of resources and socio-economic characteristics of the population of the local educational agencies.

(20 U.S.C. 246)

30-119 0-79-4

§ 156.13 Comprehensiveness of program.

The financial assistance plan shall be designed to include all necessary and required program, supportive service, and facility costs such as but not limited to: (1) costs for the regular educational programs, special education programs, vocational education programs, educationally disadvantaged pupil programs, and bilingual education programs; (2) costs of guidance and counseling, and transportation; and (3) costs for capital outlay and debt service.

(20 U.S.C. 246)

§ 156.14 Equalizing financial ability.

The financial assistance plan shall be designed to ensure that the resources expended for the educational programs, supportive services, and facilities provided to a pupil within that State reflects the wealth of the State as a whole and not the wealth of the local educational agency in which the pupil attends school. If the financial assistance plan is designed to share the educational costs between the State and its local educational agencies,

(a) the plan shall justify and set forth an equitable measure of the relative financial abilities of local educational agencies; and

(b) the plan shall provide assurances that the State and local educational agencies will apply procedures which will ensure uniformity in the measurement of wealth against which taxes for education are levied.

(20 U.S.C 246)

§ 156.15 Tax support.

The financial assistance plan shall be financed by a tax system which is equitable.

(20 U.S.C. 246)

§ 156.16 Educational and financial decisions.

The financial assistance plan shall be designed to encourage citizen interest and participation in the educational decision-making process.

(20 U.S.C. 246)

157.15 Coordination of administration with other programs authorized by Title IVA-4 of the Act.

AUTHORITY: Sec. 417A-417B, Title IV of the Higher Education Act of 1965 as amended by sec. 131(b) of Title I, Pub. L. 92-318, 86 Stat. 258-259 and 88 Stat. 603-604 Sec. 124(b), Title I, Pub. L. 94-482. (20 U.S.C. 1070d-1070d-1), unless otherwise noted.

SOURCE: 42 FR 26541, May 24, 1977, unless otherwise noted.

§ 157.1 Scope and purpose-general provisions regulations.

(a) The regulations in this part govern the administration of the Special Services for Disadvantaged Students (Special Services) Program. Services under this program are de

signed to assist in enabling youths from low-income families who have academic potential, but who may lack adequate secondary school preparation, who may be physically handicapped, or who may be disadvantaged because of severe rural isolation, to enter, continue, or resume programs of postsecondary education. Projects under this program shall provide remedial and other special services for students with academic potential who (1) are enrolled or accepted for enrollment at an institution of higher education which is a beneficiary of a grant or contract made under this part and (2) by reason of deprived educational, cultural, or economic background, or physical handicap, or limited English speaking ability, are in need of such services to assist them to initiate, continue, or resume their postsecondary education. The goal of the program and projects funded under this part shall be to increase the retention and graduation rates of such students.

(b) Assistance provided under this part is subject to applicable provisions contained in subchapter A of this chapter relating to fiscal, administrative, and other matters (General Provisions for Office of Education Programs-45 CFR 100a).

(20 U.S.C. 1070d-1070d-1)

(d) "Combination of institutions of higher education" means a group of institutions of higher education that have entered into a cooperative arrangement for the purpose of carrying out a common objective or a public or private nonprofit agency, organization, or institution designated or created by a group of institutions of higher education for the purpose of carrying out a common objective on their behalf.

(20 U.S.C. 1141(j))

(e) "Deprived cultural background," with regard to a student, means an environment that has not provided those educational and other necessary skills, exposures, and experiences that equip a student to succeed in postsecondary education.

(f) "Deprived economic background," with regard to a student, means an environment in which the family income, at most, only provided for basic necessities, such as food, housing, and clothing, or where such necessities were provided wholly or in part by public assistance.

(g) "Deprived educational background," with regard to a student, means an educational environment that did not provided those skills, knowledge, and understandings that would enable a student to complete a course of study at the host institution without supportive services.

(20 U.S.C. 1070d-1)

(h) "Institution of higher education" means an educational institution as defined in section 1201(a) of the Higher Education Act of 1965, as amended.

(20 U.S.C. 1141(a); 1088(b)(1))

(i) "Limited English-speaking ability," when used with reference to an individual, means (i) individuals who were not born in the United States or whose native language is a language other than English, or (ii) individuals who came from environments where a language other than English is dominant and, for reasons indicated in (i) or (ii) of this paragraph, have difficul

ty speaking and understanding instruction in the English language.

(20 U.S.C. 880b-1(a)(1))

(j) "Other special services" means special classes, tutoring, counseling and guidance, cultural enrichment, and referrals to health, employment, housing, and legal agencies and resources to resolve noneducational problems related to academic success.

(k) "Physically handicapped students" means those students who, because of their physical disabilities, need specifically designed instructional materials or programs, modified physical facilities, or related services to participate fully in the experience and opportunities offered by postsecondary institutions. Physical disabilities include but are not limited to: (1) Legal blindness,

(2) Deafness,

(3) Cerebral palsy,

(4) Epilepsy,

(5) Mobility difficulties due to use of appliances or prosthetics,

(6) Quadriplegia, paraplegia, or hemiplegia,

(7) Severe heart condition, and (8) Multiple disabilities or any combination of the above conditions.

(20 U.S.C. 1070d-1)

(1) "Proprietary institution of higher education" means an educational institution as defined in section 491(b) of the Higher Education Act of 1965, as arnended

(20 U.S.C. 1088(b)(3))

(m) "State" means, in addition to the several States of the Union, the Commonwealth of Puerto Rico, the District of Columbia, Guam, American Samoa, the Virgin Islands, and the Trust Territory of the Pacific Islands. (20 U.S.C. 1141(b); 1088(a))

(n) "Youth" means a person aged 14 through 27.

(20 U.S.C. 1141(b); 1088(a))

(20 U.S.C. 1070d-1070d-1, unless otherwise noted)

§ 157.3 Eligible project participants.

A student is eligible to participate in a program or project authorized under this part if such student:

(a) Is enrolled or accepted for enrollment at an institution which is the beneficiary of a grant or contract made under this part;

(b) Is a citizen or national of the U.S., or is in the U.S. for other than a temporary purpose and is or intends to become a permanent resident thereof, or is a permanent resident of the Trust Territory of the Pacific Islands; and

(c)(i) Is an individual with academic potential who demonstrates a need for the remedial and special services authorized under this part as a result of a deprived educational, cultural or economic background, or a physical handicap, or (ii) is an individual with academic potential with a limited English-speaking ability who is in need of bilingual education, teaching, guidance, and counseling in order to successfully pursue postsecondary education.

(20 U.S.C. 1070d-1)

§ 157.4 Eligible applicants.

(a) The Commissioner is authorized to make grants to and contracts with institutions of higher education and combinations of such institutions.

(b) A combination of institutions receiving a grant or contract under this part shall vest responsibility for administering the project in one of the participating institutions or in an agency established or designated by the institutions for carrying out the project on their behalf. A combination of institutions or an applicant institution that wishes to designate an agency to carry out the project on its behalf must designate or establish that agency prior to the submission of its application. The combination of institutions must also vest responsibility for administering the project in one of the participating institutions or in the agency prior to such submission.

(c) An agency which has been established or designated by a combination of institutions must have a written agreement setting forth the duties and