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 purpose of determining the effectiveness of the program or project.

(20 U.S.C. 1208; 45 CFR 166.12(b)(4))

SEC. 5.14 Reports.

(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 at least 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]

§ 169.1 Statement of purpose.

The purpose of this part is to assist developing institutions of higher education which demonstrate a desire and potential to make a substantial contribution to the higher education resources of the nation but which for financial and other reasons are struggling for survival and are isolated from the main currents of academic life. The Commissioner will support the establishment of cooperative arrangements under which these developing institutions may draw on the talent and experience of the stronger colleges and universities, on the educational resources of business and indus

§ 169.2 Definitions.

As used in this part:

(a) "Act" means Title III of the Higher Education Act of 1965, as amended.

(b) "Academic Year" means a period of time usually eight or nine months in which a full-time student would normally be expected to complete the equivalent of two semesters, two trimesters, three quarters, twenty-eight semester hours, forty-two quarter hours or 900 clock hours of instruction.

(20 U.S.C. 1051-1054, 1056)

(c) “Developing Institution” is an institution of higher education that is so classified under Subpart B of this part.

(20 U.S.C. 1052)

(d) "Institution of Higher Education" means an educational institution as defined in section 1201(a) of the Higher Education Act of 1965.

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

(e) "Junior or Community College" means an institution of higher education (1) which does not provide an educational program for which it awards a bachelor's degree (or an equivalent degree), (2) which admits as regular students only persons having a certificate of graduation from a school providing secondary education (or the recognized equivalent of such a certificate); and (3) which does (i) provide an educational program of not less than two years which is acceptable for full credit toward such a bachelor's or equivalent degree, or (ii) offers a two year program in engineering, mathematics, or the physical or biological sciences, which program is designed to prepare a student to work as a technician and at the semiprofessional level in engi

neering, scientific or other technological fields, which fields require the understanding and application of basic engineering, scientific, or mathematical principles of knowledge.

(f) "State" means the several States of the Union, the Commonwealth of Puerto Rico, the District of Columbia, Guam, American Samoa, and the Virgin Islands.

(20 U.S.C. 1141(b); 20 U.S.C. 1051-1054 unless otherwise noted)

§ 169.3 Advisory Council on Developing Institutions.

(a) An Advisory Council on Developing Institutions will be established consisting of nine members appointed by the Commissioner with the approval of the Secretary. The Advisory Council will assist the Commissioner:

(1) In identifying developing institutions through which the purposes of this part may be achieved, and

(2) In establishing the priorities and criteria to be used in making grants under this part.

(20 U.S.C. 1053)

§ 169.4 Funding limitation.

Junior or community colleges may receive not more than 24 per centum of the sums appropriated for any fiscal year for carrying out the provisions of this part.

(20 U.S.C. 1051)

§ 169.5 Limitation.

Funds made available pursuant to this part shall not be used for a school or department of divinity as defined in section 1201(1) of the Higher Education Act of 1965 or for any religious worship or sectarian activity.

(20 U.S.C. 1056, 1141(1))

§ 169.6 General provisions regulation.

(a) Assistance provided under this part is subject to applicable provisions contained in Subchapter A of this chapter (relating to fiscal, administrative and other matters).

(20 U.S.C. 1051-1056)

Subpart B-Criteria for Identifying Developing Institutions

§ 169.11 General criteria.

A "developing institution" is an institution of higher education in any State which:

(a) Is legally authorized to provide, and provides within the State, an education program for which it awards a bachelor's degree, or is a junior or community college;

(b) Admits as regular students only persons having a certificate of graduation from a school providing secondary education or the recognized equivalent of such a certificate;

(c) Is accredited by a nationally recognized accrediting agency or association determined by the Commissioner to be reliable authority as to the quality of training offered or is, according to such an agency or association, making reasonable progress toward accreditation;

(d) Meets the requirements of paragraphs (a) and (c) of this section during the five academic years preceding the academic year for which it seeks assistance under this part, except that:

(1) The Commissioner may waive this five year requirement for those institutions located on or near an Indian reservation or a substantial number of Indians if he determines that such a waiver will increase the opportunity for Indians to obtain the benefits of higher education; and

(2) The Commissioner may waive three years of this five year requirement for an institution if he determines that such a waiver will substantially increase higher education for Spanish-speaking people. For purposes of this subparagraph, Spanish-speaking people are those persons of hispanic heritage including persons of Mexican, Puerto Rican, Cuban, Central American, South American, or other Spanish-speaking origin.

(e) Is, on the basis of the quantitative and qualitative factors set forth in §§ 169.12 and 169.13 respectively, (1) making reasonable effort to improve the quality of its teaching and administrative staffs and of its student services; and (2) for financial or other reasons, struggling for survival and

isolated from the main currents of academic life.

(20 U.S.C. 1052)

§ 169.12 Quantitative factors for identifying developing institutions.

The following eight factors have been identified as the most important quantitative measures in assessing whether an institution meets the conditions set forth in § 169.11(e). They have been quantified by institutional

type and control. These factors define the range of developing institutions. Every institution which meets all the quantitative standards will be included for further evaluation under the qualitative criteria. Institutions that fall outside the range of one or more of the criteria will be given an opportunity to demonstrate that the shortfall or excess as the case may be does not materially alter the character of the institution.