(b) Each applicant must also give written notice of the filing of his application, and each amendment thereto, to the State educational television agency, of any, in any State, any part of which would receive Grade B service or better from the applicant's broadcast station, unless such agency has been served in accordance with paragraph (a) of this section.

§ 60.7 Acceptance of applications.

(a) Applications tendered for filing with the Secretary will be given a preliminary examination to ascertain whether they are complete. Applications found to be complete will be accepted for filing. Applications found to be substantially complete will be accepted for filing subject to receipt from the applicant of information necessary to complete the application. Applications which are not substantially complete, or which are determined to be not in accordance with the provisions of this part, will be returned to the applicant. Acceptance of an application for filing will not preclude subsequent return of the application if it is found to be not in accordance with the provisions of this part, or if the applicant fails to file any additional information or documents requested by the Secretary.

(b) An application will be accepted for filing only where the transmission apparatus proposed therein will be used in the operation of a noncommercial educational television broadcast station on a channel reserved by the Commission for noncommercial educational use, unless the applicant has pending before the Commission a petition to reserve such channel, or unless the Commission had accepted for filing, on or before May 1, 1962, an application by the applicant or a person qualified to be an applicant for authorization to construct such noncommercial educational television broadcast station on an unreserved channel. § 60.8

Comments on applications.

(a) The Secretary will publish notice in the FEDERAL REGISTER of the acceptnce for filing of each application and of the receipt of each amendment which substantially affects an application.

(b) Within 30 calendar days from the date on which the Secretary publishes a notice in the FEDERAL REGISTER of the acceptance for filing of an application (and within 10 calendar days from the date on which the Secretary publishes a

notice in the FEDERAL REGISTER of the receipt of an amendment) any State educational television agency and any other interested person may file comments with the Secretary in support of or in opposition to the application or amendment, setting forth the grounds for such support or opposition. The person filing comments must certify that a copy of such comments has been mailed to the applicant.

(c) The applicant may file a reply to any comments opposing his application or an amendment thereof, within 15 calendar days from the last day for filing such comments.

(d) The time periods referred to in paragraphs (b) and (c) of this section may be extended by the Secretary if good cause is shown therefor.

§ 60.9 Assurances required.

No project will be approved unless the applicant has given assurances acceptable to the Secretary:

(a) That the applicant's organic or corporate powers include the authority to construct and operate noncommercial educational television broadcast facilities, and to receive Federal funds for such construction;

(b) That the transmission apparatus to be acquired and installed under the project will be owned by the applicant;

(c) That the operation of the noncommercial educational television broadcast facilities will be under the control of the applicant or a person qualified under § 60.3 (e) to be an applicant;

(d) That sufficient funds will be available when needed:

(1) To meet the non-Federal share of the costs of the project;

(2) To acquire all land and to construct and install all facilities, structures and equipment, in addition to the transmission apparatus included in the project, necessary to place the proposed noncommercial educational television broadcast facilities in operation; and

(3) To operate and maintain the noncommercial educational television broadcast facilities;

(e) That the applicant will promptly complete the project and place the noncommercial educational television broadcast facilities in operation;

(f) That the transmission apparatus to be acquired and installed under the project will be used only for educational

purposes and primarily for educational television broadcast purposes:

(g) That the applicant has or will have title to the site or premises on which the transmission apparatus specified in the project application will be installed, or the right to construct, maintain and operate on and to remove from such site or premises such transmission apparatus for a period of not less than ten years after completion of the project, provided that the ten year period may be reduced to such period of time as the Secretary may deem appropriate after consideration of the nature of the particular transmission apparatus involved and the feasibility of its relocation including the probable cost thereof.

(h) That adequate methods of obtaining a competitive basis for the acquisition and installation of transmission apparatus included in the project will be employed either by appropriate public advertising or by circularizing three or more competitive vendors, and that the award of the contract will be made to the lowest responsible and acceptable bidder.

(i) That the applicant will comply with the Civil Rights Regulations of the Department of Health, Education, and Welfare, 45 CFR Part 80.

[28 F.R. 5424, June 1, 1963, as amended at 29 F.R. 8215, June 30, 1964; 30 F.R. 14651, Nov. 25, 1965]

§ 60.10

Operation on reserved channel.

A project will be approved only where the transmission apparatus proposed therein will be used in the operation of a noncommercial educational television broadcast station on a channel reserved by the Commission for noncommercial educational use (47 CFR 73.606) as of the date action is taken by the Secretary on the application, unless the Commission had accepted for filing, on or before May 1, 1962, an application by the applicant or a person qualified to be an applicant for authorization to construct such noncommercial educational television broadcast station on an unreserved channel.

to connect two or more noncommercial educational television broadcast stations. § 60.12 Priorities.

(a) Except as otherwise specified, applications will be considered as nearly as possible in the order in which they are accepted for filing.

(b) The Secretary may at any time: (1) Defer action on all applications or on groups of applications;

(2) Institute priorities for the consideration and approval of applications, if in his judgment the funds available are or may not be sufficient to cover the amounts requested in applications then pending, or if he determines that such action is necessary to promote the activation of new noncommercial educational television broadcast stations or otherwise to achieve the objectives of this part; or

(3) Establish temporary limitations on the maximum amount of Federal grants which may be approved for projects situated in each of the several States, if in his judgment such action would assist in promoting equitable distribution of such Federal grants throughout the several States.

In order to achieve prompt and effective use of all remaining available television channels reserved by the Commission for noncommercial educational use; equitable geographical distribution of noncommercial educational television broadcast facilities throughout the States; and provision of noncommercial educational television broadcast facilities which will serve the greatest number of persons and serve them in as many areas as possible, and which are adaptable to the broadest educational uses, the Secretary, in determining whether to approve an application for a Federal grant, in whole or in part, and the amount of such grant, or whether to defer consideration of such an application, and in light of the funds available will take into consideration all facts and information relevant to that application, as applied to the following factors (not listed in any order of priority):

(a) Whether the project will result in the activation of a new noncommercial educational television broadcast station;

(b) The area and population which will receive a new noncommercial educa

tional television broadcast service as a result of the project;

(c) The hours during which the noncommercial educational television broadcast station will operate;

(d) The general and special educational and cultural needs of the area for noncommercial educational television broadcast service as well as the need for local outlets for the origination of noncommercial educational television broadcast programs; the extent to which those needs are being or will be met by existing or proposed noncommercial educational television broadcast stations; and the extent to which the project is necessary to meet those needs;

(e) The extent to which the project will contribute to meeting the needs for noncommercial educational television broadcasting in the State;

(f) The extent to which provision has been made for the cooperation and participation of educational, cultural and community service agencies, institutions and organizations within the service area of the station;

(g) The extent to which any proposed interconnection of noncommercial educational television broadcast stations is necessary to provide new or improved noncommercial educational television

broadcast service;

(h) The cost of the project and of the various components thereof in relation to the objectives to be achieved;

(i) The extent to which the various items of transmission apparatus proposed are necessary to, and capable of achieving the objectives of the project;

(j) How quickly the applicant can be expected to complete the project;

(k) The provisions of any relevant Statewide or regional noncommercial educational television broadcast plans. § 60.14 Amount of Federal grant.

(a) The amount of the Federal grant for each approved project will be the sum of the amounts determined by the Secretary under paragraphs (b) and (c) of this section, and subject to the limitations of paragraph (d) of this section.

(b) An amount not exceeding 50 percent of the amount determined by the Secretary to be the reasonable and necessary cost (including the fair market value of donations in kind) of the acquisition and installation of transmission apparatus of the project, except that such project shall exclude:

(1) Transmission apparatus which, prior to acceptance for filing of the application, the applicant owns;

(2) Services (except for engineering services to the extent that such services are within the definition of "installation" contained in § 60.3 (r)) performed for the applicant prior to acceptance for filing of the application by the Secretary or contracted for by the applicant prior to acceptance for filing of the application by the Secretary, unless, by the terms of the contract, the applicant will be under no legal obligation or liability in the event the services so contracted for are not approved by the Secretary for inclusion in the project;

(3) The value of transmission apparatus which was acquired or installed, in whole or in part, by donation from the United States or with Federal funds provided from sources other than under this part; and

(4) Transmission apparatus previously acquired or installed by a person other than the applicant by donation from the United States, or with Federal funds pursuant to this Part or any other provision of law.

(c) Twenty-five percent of the amount determined by the Secretary to be the reasonable and necessary cost of any transmission apparatus which, prior to the date the application is accepted for filing, is owned by the applicant and is used by the applicant only for educational purposes and primarily for educational television broadcasting purposes, or which will be used by the applicant only for educational purposes and primarily for educational television broadcasting purposes upon completion of the project except that such cost shall exclude:

(1) The cost of acquiring transmission apparatus in excess of the fair market value of such apparatus as of the date it was acquired for noncommercial educational television purposes;

(2) The cost of any transmission apparatus to the extent that the applicant or any other person has previously received a credit pursuant to the provisions of this paragraph;

(3) The value of transmission apparatus which was acquired or installed, in whole or in part, by donation from the United States or with Federal financial participation pursuant to the provisions of this part or any other provision of law.

(d) The total amount of a Federal grant may not exceed 75 percent of the total amount of the reasonable and necessary cost of the project as determined under paragraph (b) of this section; nor may the total amount of the Federal grant exceed the total amount reasonable and necessary to meet the monetary cost of the transmission apparatus and personal services in the project which are not donated.

[28 F.R. 5424, June 1, 1963, as amended at 30 F.R. 7371, June 4, 1965; 30 F.R. 14651, Nov. 25, 1965]

§ 60.15 Action on applications.

(a) After consideration of the application, any comments and replies filed by interested parties and any other relevant information, the Secretary will either:

(1) Approve the project, including determination of the amount of the Federal grant; or

(2) Deny approval of the project application, in whole or in part, and set forth, in writing, the grounds and reasons therefor, provided that such denial shall not become final until 30 calendar days from the date of such denial, within which time the applicant may file with the Secretary a petition for reconsideration pursuant to § 60.22, unless the right to file such a petition is waived in writing by the applicant.

(b) The approval, in whole or in part, of an application shall not become final until the applicant complies with all relevant requirements imposed by this part, and with such additional conditions imposed on the Federal grant as the Secretary may deem necessary to insure full compliance with the provisions and objectives of Public Law 87447, and in any case where the Secretary approves, in whole or in part, any project which requires an authorization or authorizations from the Commission, such approval will not become effective unless and until the Commission grants the required authorization or authorizations and such grant or grants become final.

(c) Upon the Secretary's approval or denial, in whole or in part, of a project, the Secretary will inform:

(1) The applicant;

(2) Each State educational television agency, if any, in any State, any part of which would receive Grade B service or

(a) Approval of a project may be revoked by the Secretary on the following grounds:

(1) Final action by the Commission revoking a construction permit required for such project, denying an application for extension or modification of such construction permit, or denying an application for a construction permit to replace such required construction permit; or

(2) Forfeiture of a construction permit required for a project for which a grant has been approved (pursuant to 47 CFR 1.313); or

(3) Failure of the applicant to complete the project within a reasonable period of time, or to use the Federal funds for the purposes for which granted; provided, that within 30 calendar days from the date of receipt of notice of such revocation the applicant may file with the Secretary a petition for reconsideration pursuant to § 60.22.

(b) If approval of a project is revoked pursuant to the provisions of this section, no further Federal funds will be paid to the applicant, and the Secretary shall take such steps as may be deemed necessary to protect the Federal financial interests.

§ 60.17 Conditions to Federal grant.

In addition to any other conditions imposed by law or determined by the Secretary to be reasonably necessary to fulfill the purpose of the Federal grant, each Federal grant shall be subject to the condition that the applicant shall:

(a) Use the Federal grant funds solely for the purposes for which the Federal grant was made;

(b) Maintain, during construction of the project and for ten years after completion of the project, protection against common hazards through adequate insurance coverage or other equivalent undertakings; except that to the extent the applicant follows a different policy of protection with respect to its other property, the applicant may extend such policy to transmission apparatus acquired and installed under the project; (c) Provide qualified engineering supervision and inspection of the proj

ect to insure that the completed project conforms with the approved project;

(d) Permit the Secretary and the Comptroller General of the United States, or any of their duly authorized representatives, to have access for the purpose of audit and examination to any books, documents, papers, and records of the applicant that are pertinent to the receipt and use of Federal financial assistance under this part;

(e) Permit inspection by the Secretary or his duly authorized representative of the transmission apparatus acquired with Federal financial assistance at any reasonable time within ten years after completion of the project;

(f) Repay to the United States any Federal grant funds found by the Secretary to have been used contrary to law, to these regulations, to the assurances given the Secretary and to the conditions to the Federal grant, and any amount paid in excess of the Federal share of the actual cost of the approved project;

(g) Credit and pay to the United States any interest earned on Federal grant funds.

(h) Comply with such requirements as are established pursuant to Executive Order 10925 as amended and extended by Executive Order 11114 providing for promoting and insuring equal employment opportunity for all qualified persons without regard to race, creed, color or national origin under contracts for construction, as defined in the aforementioned Executive orders, financed with assistance from the Federal Government. [28 F.R. 5424, June 1, 1963, as amended at 28 F.R. 12256, Nov. 19, 1963; 30 F.R. 14651, Nov. 25, 1965]

§ 60.18 Payment of Federal grant.

(a) After the Secretary's approval of a project becomes final in accordance with § 60.15(b) except where the Secretary for good cause shown has approved an alternative method of payment, the amount of the Federal grant will be paid to the applicant in the following man

ner:

(1) An amount not exceeding 50 percent of the total amount of the Federal grant entitlement approved by the Secretary will be paid to the applicant upon the applicant's request and certification that such an amount is needed to pay liabilities incurred in the project.

(2) An amount not to exceed the balance of the grant entitlement will be

paid upon completion or substantial completion of the project. Payment will be made only after inspection of the project and the applicant's financial records pertinent to the Federal financial assistance, as the Secretary may deem necessary, and approval by the Secretary of a Request for Final Payment which shall include

(i) Certification that the noncommercial educational television broadcasting station has, where required, Commission authorization to broadcast following acquisition and installment of project equipment,

(ii) Certification that the acquisition and installation of the project equipment either has been completed or is substantially completed in accordance with the project as approved by the Secretary, and

(iii) A detailed financial report itemizing the actual costs incurred in either completing the project or substantially completing the project, and the sources of funds for paying for the items of transmission apparatus delivered, accompanied by certified true copies of invoices, bills or other satisfactory documents that the expenses have been incurred and the amount thereof. If payment is requested on the basis of substantial rather than final completion of the project, the amount of payment provided for herein shall be computed on the basis of the cost attributable by the Secretary to the completed portion of the project. Upon final completion of such project as approved by the Secretary, the applicant will amend the Request for Final Payment to include the remaining project costs and these will be paid in accordance with subparagraph (3) of this paragraph.

(3) Any payment on the basis of final completion of the project pursuant to subparagraph (2) of this paragraph will be made upon:

(i) Final inspection and certification of final completion by an appropriate program official, and

(ii) Receipt of written assurances, binding upon the applicant, by an appropriate official thereof, that amounts of sustained audit exceptions taken in any subsequent audit will be refunded to the Federal Government.

(b) If the actual costs incurred in completing the project are less than the estimated costs which constituted the basis for the Secretary's determination of the amount of the Federal grant, the