to be construed as requirements. However, where the guidelines set forth a permissible means of meeting a legal requirement, the guidelines may be relied upon.

(20 U.S.C. 1211 et seq., 113 Cong. Rec. 5936, 5939 (daily ed. May 23, 1967); United States v. Jefferson County Board of Education, 372 F.2d 836, 857 (1966).)

(b) Where a guideline is issued in connection with or affecting a provision in the regulations, the pertinent regulation will be cited after the citation of legal authority for the guideline, in the parentheses following the guideline. For example, if the legal authority for the guideline is section 604 of the Act (20 U.S.C. 1124), and the guideline affects section 171.4 of the regulations (45 CFR 171.4), the following citation will be placed on the line immediately following the guideline (20 U.S.C. 1124; 45 CFR 171.4). If no particular section of the regulations is affected, no citation to the Code of Federal Regulations (CFR) will be made.

(20 U.S.C. 1232(a).)

Sec. 1.2 Purpose of Act. Title VI-A of the Higher Education Act provides financial assistance for the acquisition of equipment, materials and minor remodeling to improve undergraduate instruction in institutions of higher education. Such financial assistance is provided for projects for the acquisition of laboratory and other special equipment, (Category I) or for equipment and materials for closed-circuit direct instruction, (Category II).

(20 U.S.C. 1121)

Part 2-Application for Grant

Sec. 2.2 Who may file applications. (a) All accredited nonprofit institutions of higher education, including post-secondary trade and vocational schools are eligible provided they comply with Title VI of the Civil Rights Act of 1964, are not "schools or departments of divinity", and meet the basic "maintenance of fiscal effort" set forth in the Act.

(b) Separate applications must be submitted for each institution, branch campus or combination of institutions. For a combination of institutions, an application may be filed either by one of the institutions designated by the combination to act on behalf of the group or by an agency designated or created by the group to act on its behalf.

(c) Unless otherwise provided in the State plan for the State in which the campus is located, no more than one Category I (laboratory and other special equipment) and one Category II (CCTV) application per institution, branch campus, or combination of institutions may be submitted in any Federal fiscal year.

(d) Institutions or branch campuses may also subit separate applications for both categories, while at the same time participate as part of a combination of institutions.

(20 U.S.C. 1125(a).)

Sec. 2.3 Costs which may be included. (a) Applications may be submitted only for the costs of acquisition (including necessary installation) of equipment, acquisition of materials and minor remodeling which have not been and will not be incurred prior to or under contracts entered into prior to, the filing of the project application with the appropriate State commission. Cost eligible for inclusion in the project budget shall be further limited to those which will be incurred not later than 12 months after the grant is approved, or under contracts entered into within such time, and in connection with lease purchase contracts or lease agreements, to payments made in an amount not exceeding the cost for a period of twelve months.

(b) Separate applications for Category Ilaboratory and other special equipment and Category II-CCTV must be made. Costs eligible for Category II are not generally eligible for Category I and vice versa.

(20 U.S.C. 1124(b))

Sec. 2.4 Closing dates. Check your State plan or contact your State commission for closing dates. Applications are considered in the Federal fiscal year in which submitted, in accordance with closing dates established in each individual State plan.

(20 U.S.C. 1123)

Sec. 2.5 Assistance in preparing the application. (a) Payments for any private assistance obtained in the preparation of an application under this program may not be included in the cost for the project covered in such an application. Assistance in interpreting definitions, instructions, or eligibility requirements or in preparing an application may be obtained by telephoning, visiting, or writing to your State commission.

(b) Before preparing an application, the applicant should be certain that the institution or each institution in a combination of institutions, meets all institutional eligibility requirements.

(20 U.S.C. 1125.)

Part 3-Preparation for Filing of
Application

Sec. 3.1 Supplemental information. Consult with your State commission regarding any supplemental information required. The State commission must satisfy itself that all data in the application are valid and that the institution or each institution in a combination of institutions, and the project

meets the basic eligibility requirernents. The State commission, in strict accordance with its published State plan, must verify Federal grant amounts, assign priority standings for all complete projects received by the appropriate State closing date, and before a specified date, recommend projects to the U.S.O.E. for final action.

(20 U.S.C. 1125; 45 CFR 171.3.)

Sec. 3.2 Assurances. Before submitting the application to your State commission, review the assurances contained in the application. REMEMBER: If a grant is made, these assurances become a legal and binding agreement.

(20 U.S.C. 1125; 45 CFR 171.2.)

Part 4-Institutional, Project, and Item

Eligibility

Sec. 4.1 Institutional eligibility. An institution of higher education as defined in the Higher Education Act of 1965 and which meets all of the requirements of Sections 604(b), 605, 609 and 1201(a) is considered an eligible institution. Institutional eligibility is a prerequisite for project eligibility, which in turn is a prerequisite for item eligibility. The following sections cover project and item eligibility.

(20 U.S.C. 1125; 45 CFR 171.3(c).)

Sec. 4.2 Project eligibility. (a) A narrative description, covering acquisitions in each subject area of the project is required. The State commission will be reviewing these narratives very closely.

(b) Equipment, materials and directly related minor remodeling, are not, by themselves, eligibile. All acquisitions must relate clearly to a project for the improvement of instruction. Acquisitions relating to noninstructional functions such as general administration, organized research or operation of the physical plant are not eligible. An entire proposal, or a part thereof, may be declared ineligible because the project or projects are not directly related to the improvement of instruction.

(c) Audiovisual and other types of equipment assigned to centralized locations that are used directly in instruction are eligible if the items will be used predominately in instruction in eligible subject, and will not be used at all for sectarian instruction or religious worship.

(20 U.S.C. 1123; 45 CFR 171.3(c).)

Sec. 4.3 Ineligible items-(a) Items not directly related to instructional improvement. Items to be used for institutional administration, organized research, operation of the physical plant, or general library operations rather than for instructional purposes are rot eligible. Specific examples of items not eligible are:

(1) Items such as printing equipment in a centralized printing or duplicating service; Multilith and offset printing presses not used primarily for instructional purposes are ineligible.

(2) Microfilm readers and printers which are for general library use; and general library acquisitions such as books, periodicals and microfilm.

(3) Both analog and digital computers are generally ineligible, however, the Higher Education amendments of 1968 permit the acquisition of "desk-top" computers used solely or partially for regularly scheduled undergraduate instruction in courses in eligible subjects. A "desk-top" computer normally costs less than $10,000, and has a limited storage and operational capacity.

(b) General purpose furniture. Examples of this type are office furniture and files, tables, and desks. Certain items such as files may be eligible if they are clearly for storage of materials directly related to an instructional program. Seating of all types is ineligible.

(c) Glassware. Examples are test tubes, tubing, cover slides and other glass or mirror items consumed in use. However, student glassware lab kits are eligible, but stock replacement parts are not.

(d) Chemicals. All chemicals consumed in use are ineligible.

(e) Supplies. All supplies which are stock operational items, that are consumed in use and no longer usable in their original form. Examples are bolts, tape, paper stock, staples, typewriter ribbons, replacement bulbs, spare parts, etc. Items such as blank film, audio or video tapes (eligible in Category IICCTV only) which are used to produce instructional materials for extended use are eligible.

(f) Public address systems. Examples are school, auditorium or grandstand PA systems comprised of microphones, mounted speakers, amplifiers, etc. Portable lecterns with built-in voice amplification units for instructional use in large classrooms or lecture halls are eligible.

(g) Radio and television broadcast apparatus. Used for the transmission of signals on the standard AM, FM, VHF, or UHF broadcast banks; (except 2500 mHz CCTV installations). This includes broadcast towers, and transmitters.

(h) Items for the maintenance and repair of equipment. Examples are repair or test bench tools, equipment, spare parts and replacement units for other equipment. Items for repair and maintenance of audio-visual materials are eligible.

(i) Textbooks. "Textbook" means a book or workbook, or manual, which is used as a principal source of student material for a given class or group or students, a copy of which is expected to be available for the individual use of each student in such a class

or group. While textbooks are ineligible, programmed instruction books (not consumed in use) are eligible where these materials are supplementary to the basic course, or are for reference use.

(j) Athletic and recreational equipment. Athletic and recreational equipment used for recreation, intramural programs, intercollegiate athletics or nonscheduled class activity is not eligible.

(20 U.S.C. 1123.)

Part 5-Narrative Description Exhibits

Sec. 5.1 General information. (a) This narrative serves two functions; first, the basic determination that the project is designed for the improvement of instruction, and secondly, the assignment of priority points by the State commission.

(b) The narrative should contain specific documentation as to how a particular item or group of items will benefit an instructional program. Similar types or classes of equipment may be covered in a single subject area narrative. Do not include a written justification for each individual item in a subject category narrative unless the sophistication of the equipment or materials warrants it.

(c) Be brief. Clarity and completeness are the essential ingredients in describing each point.

(20 U.S.C. 1123.)

Sec. 5.2 Specific information. In completion of the project description the following basic points should be covered for each subject area:

(a) Deficiencies to be remedied. Describe the specific instructional deficiencies which the project is designed to remedy. A project for a combination of institutions must describe the deficiencies to be remedied of each participating institution.

(b) Plan for improvement. Describe the plan for remedying the deficiencies identified above. For a combination of institutions, describe the joint plan for improvement to remedy the deficiencies indicated above.

(c) Adequacy of resources. Describe the adequacy of the institution's resources for the effective utilization of the acquisitions proposed in this application. For a combination of institutions, indicate the adequacy of each institution's resources for effectively utilizing its share of the proposed acquisitions and the adequacy of the combined group of institutions in meeting its joint needs. For basic equipment such as microscopes and projectors, only a very brief description is necessary. For highly sophisticated equipment such as studio type television equipment the description must cover the institutional commitment for the continuance of the program.

(20 U.S.C. 1124; 45 CFR 171.3(b).)

(2) Tentative specifications, including exemplary make, model, or catalog number. Where the component parts are being requested, only the description of the finished item should be shown.

(3) Any items which are to be acquired by trade-in must be so identified and only net costs may be listed. Identify the item to be traded in, and the cost, before trade-in allowance, of the item to be acquired.

(b) Materials. List the proposed "materials" items for each particular subject to be purchased for use in improving instruction. Show only the number of items to be acquired. Actual titles of proposed films, filmstrips, recordings, or publications, should not be shown. Elimination of titles, etc., will necessitate a clear explanation of the materials total need as expressed in the narrative.

(c) Directly associated necessary minor remodeling. Describe in detail the specifications and show the estimated cost for minor alterations in previously completed buildings which are directly related to the installation or effective utilization of the equipment to be installed under this specific project. This includes installation charges which are separately detailed by the equipment supplier.

§ 173.1

Subpart A-General

Definitions.

As used in this part:

"Act" means Title I of the Higher Education Act of 1965, as amended. (20 U.S.C. 1001-1011)

"Combination of institutions" 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 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.

"Community service program" pursuant to Section 102 of the Act means an educational program, activity, or service offered by an institution(s) of higher education and designed to assist in the solution of community problems in rural, urban, or suburban areas with particular emphasis on urban and suburban problems. Such programs may include but are not

education or combinations thereof, to identify and develop new or improved educational approaches to problems relating to technological and social changes and environmental pollution. (20 U.S.C. 1005a(a))

"School or department of divinity" means an institution, or a department or branch of an institution, whose educational program is specifically designed to prepare students to become ministers of religion (or to provide continuing training for any such programs), to enter into some other religious vocation or to teach theological subjects.

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

"State agency or institution" or "State agency" means the State agency or State institution designated or created pursuant to section 105(a) of the Act and § 173.10.

(20 U.S.C. 1005(a))

§ 173.2 Applicability of general provisions.

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

(20 U.S.C. 1001 et seq; 45 CFR Part 100; 38 FR 30654 (November 6, 1973); as amended 39 FR 19211 (May 31, 1974)).

Subpart B-State Plan Program

§ 173.10 Purpose and Scope.

The program described in this subpart shall be administered by the State agency or institution pursuant to a State plan developed and submitted through the State agency or institution and approved by the Commissioner. The State plan shall set forth a comprehensive, coordinated, and statewide system of community service programs designed to assist in the solution of community problems in rural, suburban areas (with particular emphasis on urban and suburban problems), such as, but not limited to, housing, poverty, government, recreation, employment, youth opportunities, transportation, health, and land use, by utilizing the resources of institutions of higher education: Provided

however, That where funds are insufficient to support such a program, the State plan may set forth one or more proposals for community service programs in lieu thereof. The State plan and amendments thereof, once approved by the Commissioner, shall constitute the basis on which Federal allotments are paid to the State as well as the basis for determining the allowable expenditures by the State and participating institutions where support for a community service and continuing education program is derived in whole or in part from Federal funds.

(20 U.S.C. 1005)

§ 173.11 State agency or institution.

(a) The State shall designate or create a single State agency or institution to develop, submit, administer and supervise the administration of the State plan. The agency or institution so designated or created shall include individuals who have special qualifications or experience in working with and solving community problems, and who are broadly representative of institutions of higher education in the State, public and private, which are competent to offer community service programs. The State may, however, designate an existing State agency or institution which does not meet the above requirements, provided that (1) such State agency or institution takes whatever action is necessary to meet such requirements, or (2) the State designates or creates an advisory council which does meet the requirements to consult with the designated State agency or institution in the preparation of the State plan and amendments thereto and in connection with any policy matters arising in the administration of the plan.

(b) The State agency or institution shall notify the Commissioner within 15 days of changes in the composition of either the State agency or institution, or the State advisory council, if any, affecting its special qualifications with respect to solving community problems or its being broadly representative of institutions of higher education in the State, public and private, which are competent to offer community service programs.