(2) that the conduct of the program or performance of the activity or service is consistent with the institution's over-all educational program and is of such a nature as is appropriate to the effective utilization of the institution's special resources and the competencies of its faculty.

Where course offerings are involved, such courses must be university extension or continuing education courses and must be—

(A) fully acceptable toward an academic degree, or

(B) of college level as determined by the institution offering such courses.

(b) For purposes of this part the term "continuing education program" means postsecondary instruction designed to meet the educational needs and interests of adults, including the expansion of available learning opportunities for adults who are not adequately served by current educational offerings in their communities.

(c) For purposes of this part, the term "resource materials sharing programs" means planning for the improved use of existing community learning resources by finding ways that combinations of agencies, institutions, and organizations can make better use of existing educational materials, communications technology, local facilities, and such human resources as will expand learning opportunities for adults in the area being served.

(20 U.S.C. 1002) Enacted Nov. 8, 1965, P.L. 89-329, Title I, sec. 102, 79 Stat. 1219; amended October 12, 1976, P.L. 94-482, Title I, Part A, sec. 101(b) (1) (A), (b) (1) (B), (b) (1) (C), sec. 101 (g) (2), 90 Stat. 2083, 2086.

ALLOTMENTS TO STATES

SEC. 103. (a) From the sums appropriated pursuant to section 101 (a) for any fiscal year which are not reserved under section 106 (a),1 the Commissioner shall allot to each State an amount which bears the same ratio to such sums as the population of such State bears to the population of all the States, except that, for any fiscal year beginning on or after October 1, 1976, no State shall be allotted from such sums less than the amount which such State received during the fiscal year beginning July 1, 1974.

(b) The amount of any State's allotment under subsection (a) for any fiscal year which the Commissioner determines will not be required for such fiscal year for carrying out the State plan (if any) approved under this part shall be available for reallotment from time to time, on such dates during such year as the Commissioner may fix, to other States in proportion to the original allotments to such States under such subsection for such year, but with such proportionate amount for any of such States being reduced to the extent it exceeds the sum the Commissioner estimates such State needs and will be able to use for such year for carrying out the State plan: and the total of such reductions shall be similarly reallotted among the States whose proportion

1 Section 102(b) of P.L. 92-318 provides as follows:

(b) The amendments made by the second sentence of paragraph (1) of subsection (a) and by paragraph (2) of such subsection shall be effective after June 30, 1972. and then"(1) only with respect to appropriations for title I of the Higher Education Act of 1965 for fiscal years beginning after June 30, 1972: and

"(2) only to the extent that the allotment to any State under section 103(a) of such title is not less for any fiscal year than the allotment to that State under such section 103 (a) for the fiscal year ending June 30, 1972."

ate amounts were not so reduced. Any amount reallotted to a State under this subsection during a year from funds appropriated pursuant to section 101 shall be deemed part of its allotment under subsection (a) for such year.

(c) In accordance with regulations of the Commissioner, any State may file with him a request that a specified portion of its allotment under this part be added to the allotment of another State under this part for the purpose of meeting a portion of the Federal share of the cost of providing community service programs under this part. If it is found by the Commissioner that the programs with respect to which the request is made would meet needs of the State making the request and that use of the specified portion of such State's allotment, as requested by it, would assist in carrying out the purposes of this part, such portion of such State's allotment shall be added to the allotment of the other State under this part to be used for the purpose referred to above.

(d) The population of a State and of all the States shall be determined by the Commissioner on the basis of the most recent satisfactory data available from the Department of Commerce.

(20 U.S.C. 1003) Enacted Nov. 8, 1965, P.L. 89-329, Title I, sec. 103, 79 Stat. 1220; amended June 23, 1972, P.L. 92-318, sec. 102(a) (2), 86 Stat. 237; amended October 12, 1976, P.L. 94-482, Title I, Part A, sec. 101(b)(2), sec. 101 (g) (2), 90 Stat. 2084, 2086; amended June 15, 1977, P.L. 95-43, sec. 1(a) (1), 91 Stat. 213.

USES OF ALLOTTED FUNDS

SEC. 104. A State's allotment under section 103 may be used, in accordance with its State plan approved under section 105 (b), to provide new, expanded, or improved community service and continuing education programs, including resource material sharing programs.

(20 U.S.C. 1004) Enacted Nov. 8, 1965, P.L. 89-329, Title I, sec. 104, 79 Stat. 1220; amended October 12, 1976, P.L. 94-482, Title I, Part A, sec. 101(b) (3), 90 Stat. 2084; amended June 15, 1977, P.L. 95-43, sec. 1(a) (2), 91 Stat. 213.

STATE PLANS

SEC. 105. (a) Any State desiring to receive its allotment of funds under this part for use in community service and continuing education programs, including resource material sharing programs, shall designate or create a State agency or institution which has special qualifications with respect to solving community problems and which is broadly representative of institutions of higher education in the State which are competent to offer community service and continuing education programs, including resource material sharing programs, and shall submit to the Commissioner a State plan. If a State desires to designate for the purpose of this section an existing State agency or institution which does not meet these requirements, it may do so if the agency or institution takes such action as may be necessary to acquire such qualifications and assure participation of such institutions, or if it designates or creates a State advisory council which meets the requirements not met by the designated agency or institution to consult with the designated agency or institution in the preparation of the State plan. A State plan submitted under this part shall

(1) provide that the agency or institution so designated or created shall be the sole agency for administration of the plan or for supervision of the administration of the plan; and provide that such agency or institution shall consult with any State advisory council required to be created by this section with respect to policy matters arising in the administration of such plan;

(2) set forth a comprehensive, coordinated, and statewide system of community service and continuing education programs, including resource materials sharing programs under which funds paid to the State (including funds paid to an institution or combination pursuant to section 107 (c)) under its allotments under section 103 will be expended solely for community service and continuing education programs, including resource materials sharing programs which have been approved by the agency or institution administering the plan (except that if a comprehensive, coordinated, and statewide system of community service and continuing education programs, including resource materials sharing programs cannot be effectively carried out by reason of insufficient funds, the plan may set forth one or more proposals for community service and continuing education programs, including resource materials sharing programs in lieu of a comprehensive, coordinated, statewide system of such programs);

(3) set forth the policies and procedures to be followed in allocating Federal funds to institutions of higher education and combinations thereof in the State, which policies and procedures shall insure that due consideration will be given

(A) to the relative capacity and willingness of particular institutions of higher education and combinations thereof (whether public or private) to provide effective community service and continuing education programs, including resource materials sharing programs;

(B) to the availability of and need for community service and continuing education programs, including resource materials sharing programs among the population within the State; and

(C) to the results of periodic evaluations of the programs carried out under this part;

(4) set forth policies and procedures designed to assure that Federal funds made available under this part will be so used as not to supplant State or local funds, or funds of institutions of higher education, but to supplement and, to the extent practicable, to increase the amounts of such funds that would in the absence of such Federal funds be made available for community service and continuing education programs, including resource materials sharing programs;

(5) set forth such fiscal control and fund accounting procedures as may be necessary to assure proper disbursement of an accounting for Federal funds paid to the State (including such funds paid by the State or by the Commissioner to institutions of higher education or combinations thereof) under this part; and

(6) assurances that all institutions of higher education in the State have been given the opportunity to participate in the development of the State plan.

(b) The Commissioner shall approve any State plan and any modification thereof which complies with the provisions of subsection (a).

(c) The Commissioner shall not by standard, rule, regulation, guideline, or any other means, either formal or informal, require a State to make any agreement or submit any data which is not specifically required by this part.

(20 U.S.C. 1005) Enacted Nov. 8, 1965, P.L. 89-329, Title I, sec. 105, 79 Stat. 1220; amended Oct. 16, 1968, P.L. 90–575, Title II, sec. 202, 82 Stat. 1036; amended Oct. 12, 1976, P.L. 94-482, Title I, Part A, sec. 101(b)(4), (b) (5), (b) (6) (A), (b) (6) (B), (b)(6) (C), (b) (7), (b)(8), (b) (9), (b)(10), sec. 101 (g) (2), 90 Stat. 2084, 2085; amended June 15, 1977, P.L. 95-43, sec. 1(a) (3), 91 Stat. 213; further amended June 15, 1977, P.L. 95-43, sec. 1(b)(1), (b) (2), 91 Stat. 218.

SPECIAL PROGRAMS AND PROJECTS RELATING TO NATIONAL AND REGIONAL PROBLEMS

SEC. 106. (a) The Commissioner is authorized to reserve from the sums appropriated pursuant to section 101 for any fiscal year an amount not in excess of 10 per centum of the sums so appropriated for that fiscal year for grants pursuant to subsection (b).

(b) (1) From the sums reserved under subsection (a), the Commissioner is authorized to make grants to, and contracts with, institutions of higher education (and combinations thereof) to assist them in carrying out special programs and projects, consistent with the purposes of this part, which are designed to seek solutions to national and regional problems relating to technological and social changes and environmental pollution.

(2) No grant or contract under this section shall exceed 90 percentum of the cost of the program or project for which application is made.1

(20 U.S.C. 1005a) Enacted June 23, 1972, P.L. 92-318, sec. 102(a) (1), 86 Stat. 236-237; amended October 12, 1976, P.L. 94-482, Title I, Part A, sec. 101(g) (2), 90 Stat. 2086.

PAYMENTS

SEC. 107. (a) Except as provided in subsection (b), payment under this part shall be made to those State agencies and institutions which administer plans approved under section 105 (b). Payments under this part from a State's allotment with respect to the cost of developing and carrying out its State plan shall equal 75 per centum of such costs for the fiscal year ending June 30, 1966, 75 per centum of such costs for the fiscal year ending June 30, 1967, 50 per centum of such costs for the fiscal year ending June 30, 1968, and 66% per centum of such costs for fiscal years ending on or after June 30, 1969, except that no payments for any fiscal year shall be made to any State with respect to expenditures for developing and administering the State plan which exceed 5 per centum of the costs for that year for which payment under this subsection may be made to that State, or $40,000, whichever is the greater. In determining the cost of developing and carrying out a State's plan, there shall be excluded any cost with respect to which payments were received under any other Federal program.

1 Section 102(b) of P.L. 92-318 provides as follows:

(b) The amendments made by the second sentence of paragraph (1) of subsection (a) and by paragraph (2) of such subsection shall be effective after June 30, 1972, and then"(1) only with respect to appropriations for title I of the Higher Education Act of 1965 for fiscal years beginning after June 30, 1972: and

"(2) only to the extent that the allotment to any State under section 103 (a) of such title is not less for any fiscal year than the allotment to that State under such section 103(a) for the fiscal year ending June 30, 1972."

(b) No payments shall be made to any State from its allotments for any fiscal year unless and until the Commissioner finds that the institutions of higher education which will participate in carrying out the State plan for that year will together have available during that year for expenditure from non-Federal sources for college and university extension and continuing education programs not less than the total amount actually expended by those institutions for college and university extension and continuing education programs from such sources during the fiscal year ending June 30, 1965, plus an amount equal to not less than the non-Federal share of the costs with respect to which payment pursuant to subsection (a) is sought. (c) Payments to a State under this part may be made in installments and in advance or by way of reimbursement with necessary adjustments on account of overpayments or underpayments, and they may be paid directly to the State or to one or more participating institutions of higher education designated for this purpose by the State, or to both.

(20 U.S.C. 1006) Enacted Nov. 8, 1965, P.L. 80-329, Title I, sec. 106, 79 Stat. 1221; amended Oct. 16, 1968, P.L. 90–575, Title II, sec. 203, 82 Stat. 1036; renumbered June 23, 1972, P.L. 92–318, Title I, sec. 102(a)(1), 86 Stat. 236; amended October 12, 1976, P.L. 94-482, Title I, Part A, sec. 101(C), sec. 101 (g) (2), 90 Stat. 2085, 2086.

ADMINISTRATION OF STATE PLANS

SEC. 108. (a) The Commissioner shall not finally disapprove any State plan submitted under this part, or any modification thereof, without first affording the State agency or institution submitting the plan reasonable noice and opportunity for a hearing.

(b) Whenever the Commissioner, after reasonable notice and opportunity for hearing to the State agency or institution administering a State plan approved under section 105(b), finds that—

(1) the State plan has been so changed that it no longer complies with the provisions of section 105 (a), or

(2) in the administration of the plan there is a failure to comply substantially with any such provision,

the Commissioner shall notify the State agency or institution that the State will not be regarded as eligible to participate in the program under this part until he is satisfied that there is no longer any such failure to comply.

(20 U.S.C. 1007) Enacted Nov. 8, 1965, P.L. 89-329, Title I, sec. 107, 79 Stat. 1222; renumbered June 23, 1972, P.L. 92-318, sec. 102(a)(1), 86 Stat. 236; amended October 12, 1976, P.L. 94-482, Title I, Part A, sec. 101 (g) (2), 90 Stat. 2086.

JUDICIAL REVIEW

SEC. 109. If a State's plan is not approved under section 105(b) or a State's eligibility to participate in the program is suspended as a result of the Commissioner's action under section 108 (b), the State may within sixty days after notice of the Commissioner's decision institute a civil action in an appropriate United States district court. In such an action, the court shall determine the matter de novo.

(20 U.S.C. 1008) Enacted Nov. 8, 1965, P.L. 89-329, Title I, sec. 108, 79 Stat. 1222; renumbered June 23, 1972, P.L. 92-318, sec. 102(a)(1), 86 Stat. 236; amended October 12, 1976, P.L. 94-482, Title I, Part A, sec. 101 (d), 90 Stat. 2085.