or organizations as the Commissioner may designate. No such materials may be published for sale without the prior approval of the Commissioner, which approval shall be subject to such conditions and requirements as he deems appropriate.

§ 160.20 Disposal of salable items.

If items produced from supplies paid for in whole or in part with funds under the Act or otherwise resulting from institutional training are disposed of, the disposition shall not involve the sale or resale of such items except as may be specifically authorized by the Commissioner.

§ 160.21 Final accounting.

In addition to such other accounting as the Commissioner may require, each State agency and each training facility with which the Commissioner has a State agreement or direct arrangement shall render, with respect to each approved training project and budget for State direction and supervision, a full account of (a) the sum total of all amounts paid with respect to such project or budget, (b) all equipment and teaching aids purchased with Federal funds, (c) all Federal personal property loaned for use in the training project, (d) all training materials developed for use in the training project, and (e) all salable items resulting from the training project. A report of such account shall be submitted to the Commissioner within 60 days of the expiration or termination of the training project or the program of State direction and supervision for which the account is made.

§ 160.22 Applicability of other regulations.

Federal financial assistance under this part is subject to the requirements of Title VI of the Civil Rights Act of 1964, approved July 2, 1964 (Public Law 88-352, 78 Stat. 252, 42 U.S.C. 2000d et. seq.). Section 601 of that Act provides that no person in the United States shall, on the ground of race, color, or national origin, be excluded from participation in, be denied the benefits of, or be subjected to discrimination under any program or activity receiving Federal financial assistance. Therefore, Federal financial assistance pursuant to this part is subject to the regulation in 42 CFR Part 80.

APPENDIX-MANPOWER DEVELOPMENT AND TRAINING ACT OF 1962, AS AMENDED

TRAINING PROGRAM AGREEMENT

ARTICLE I. TERMS OF AGREEMENT

The U.S. Commissioner of Education (hereinafter referred to as the "Commissioner"), acting for the Secretary of Health, Education, and Welfare (hereinafter referred to as the "Secretary"), and

(Name of authorized State Agency) (hereinafter referred to as the "State Agency"), acting for

(Name of State, District, Commonwealth, etc.) in order

to carry out those provisions of the Manpower Development and Training Act of 1962, as amended (hereinafter referred to as the "Act") for which the Secretary is responsible, hereby agree that the State Agency will provide training and that the Commissioner will make payments of Federal funds for such training in accordance with the provisions of the Act and the implementing regulations (45 CFR Part 160).

ARTICLE II. PERIOD OF PERFORMANCE

This Agreement shall continue in effect so long as the Act is in force or until terminated by the Commissioner or the State Agency pursuant to Article III.

ARTICLE III. TERMINATION

A. The State Agency may terminate this Agreement on 30 days' advance notice in writing to the Commissioner, or without such advance notice if it certifies to the Commissioner, accompanied by an opinion of an appropriate legal officer of the State that it is no longer legally able to comply substantially with all or any part of this Agreement.

B. The Commissioner may terminate this Agreement on 30 days' advance notice in writing to the State Agency. He may terminate it without such notice if, after affording an opportunity for a hearing to the State Agency, he finds that the State Agency is no longer able or has failed to comply substantially with all or any part of this Agreement.

C. Upon termination of this Agreement, any funds paid to a State Agency pursuant to this Agreement prior to the date of such termination, and any equipment purchased with funds paid to the State Agency ander this Agreement shall be accounted for in accordance with provisions in the regulations.

ARTICLE IV. COMPLETION OF PROJECTS AFTER CHANGE IN REGULATIONS

In the event of any change in the regulations, the State Agency may carry to completion any project in accordance with the provisions of the regulations in effect at the time of final approval of that project by the Commissioner or the State Agency, as the case may be.

B. Employment will be in accordance with the provisions of Executive Order No. 11246 of September 24, 1965. The equal employment opportunity clause contained in section 202 of such Executive order shall be deemed to be a part of this Agreement as though the provisions were set out in full herein: Provided, That the terms "State Agency", "Commissioner", and "Agreement" shall be substituted for the terms "contractor", "contracting officer", and "contract", respectively, wherever they appear therein; and that the terms "subcontractor" and "subcontract" in paragraph (7) thereof shall be deemed to include training facilities and agreements with such training facilities, respectively.

166.2

State plan purposes.

166.3

State agency.

166.4

Custody of funds.

166.5

Organization.

166.6

166.7

166.8

166.9

166.10

166.11

166.12

166.13

166.14 Disbursement of funds.

166.15

Personnel.

State and local advisory committees.

Program.

Program criteria.

Cooperative arrangements between State educational agency and State health authority.

Cooperation in antipoverty efforts. Special projects, teacher training and research.

State fiscal control and accounting procedures.

Policies and procedures for State agency administrative review and evaluation.

166.16 Reports. 166.17 Amendment.

166.18 Certification of the State plan.

Subpart C-Federal Financial Participation

166.25 Federal payments to a State. 166.26 Approval of State plan.

166.27 Effective dates of State plan and

166.28 Condition precedent to receiving

166.29

amendments.

Federal funds.

Limitations.

Interest on Federal funds.

166.39 Fiscal audits.

166.40 Retention of records.

166.41 Eligible costs.

166.42 Effect of Federal payments.

166.43 Noncompliance.

166.44 Right to hearing and judicial review.

166.45 Termination of program.

166.46 Transition provisions.

166.47 Reports.

166.48 Patents and copyrights.

Subpart D-Grants for Special Experimental Demonstration Projects and for Teacher-Training Projects

166.60 Applicability. 166.61 Special projects.

166.62 Teacher-training projects.

166.63 Applicants.

(a) "Act" means the Adult Education Act of 1966 (Title III of P.L. 89-750, 80 Stat. 1191; 20 U.S.C. 1201–1213).

(b) "Adult" means any individual who has attained the age of 18 and is not currently enrolled in school.

(c) "Adult basic education" means education for adults whose inability to speak, read, or write the English language constitutes a substantial impairment of their ability to get or retain employment commensurate with their real ability, which is designed to help eliminate such inability and raise the level of education of such individuals with a view to making them less likely to become dependent on others, to improving their ability to benefit from occupational training and otherwise increasing their opportunities for more productive and profitable employment, and to making them better able to meet their adult responsibilities.

(d) "Adult education” means services or instruction below the college level (as determined by the Commissioner), for adults who

(1) Do not have a certificate of graduation from a school providing secondary education and who have not achieved an equivalent level of education, and

(2) Are not currently enrolled in schools.

(e) "Commissioner" means the U.S. Commissioner of Education, Department of Health, Education, and Welfare.

(f) "Department" means the Department of Health, Education, and Welfare. (g) "Fiscal year" means the period beginning on the first day of July and ending on the following June 30, and is designated by the calendar year in which the fiscal year ends.

(h) "Local educational agency" means a public board of education or other public authority legally constituted within a State for either administrative control or direction of public elementary or secondary schools in a city, county, township, school district, or other political subdivision of a State, or such combination of school districts or counties as are recognized in a State as an administrative agency for its public elementary or secondary schools; except that if there is a separate board or other legally constituted local authority having administrative control and direction of adult education in public schools therein, such term means such other board or authority.

(i) "Private nonprofit agency" means an agency, organization or institution no part of whose net earnings may legally inure to the benefit of any private shareholder or individual.

(j) "Public agency" means an entity established by a State or a political subdivision thereof supported in whole or in part by public funds, and administered and controlled by publicly elected or appointed officials.

(k) "School or department of divinity" means an institution, or a department or branch of an institution, whose program is specifically for the education of students to prepare them to become ministers of religion, to enter upon some other religious vocation, or to prepare them to teach theological subjects.

(1) "State" includes the District of Columbia, and (except for the purposes of section 305(a) of the Act) the Commonwealth of Puerto Rico, Guam, American Samoa, the Trust Territory of the Pacific Islands, and the Virgin Islands.

(m) "State educational agency" or "State agency" means the State board of education or other agency or officer primarily responsible for the State supervision of public elementary and secondary schools, or if there is a separate State agency or officer primarily responsible for supervision of adult education in public schools then such agency or officer may be designated for the purposes of the Act by the Governor or by State law. If no agency or officer qualifies under the preceding sentence, such term shall mean an appropriate agency or officer designated for the purposes of the Act by the Governor.

Subpart B-State Plan Purposes and Provisions

§ 166.2 State plan purposes.

The purposes of the State plan are to set forth the manner and procedures under which the State will carry out the State program to encourage the establishment or expansion of basic educational programs for adults to enable them to overcome English language limitations, to improve their basic education in preparation for occupational training and more profitable employment, and to become more productive and responsible citizens, and to provide the basis on which Federal payments are made. Therefore, in order to participate in the program described in this subpart, a State must submit to the Commissioner a State plan which meets the requirements of this subpart applicable to such program.

The State plan shall give the official name of the State educational agency which will be the sole agency for administering the plan, and shall state the title of the official who is authorized to submit the plan and amendments thereto. The State plan shall provide that the State agency will administer the State plan.

§ 166.4 Custody of funds.

The State plan shall provide for the receipt by the State Treasurer (or, if there be no State Treasurer, the officer identified by title exercising similar functions for the State) and for the proper safeguarding of all Federal funds granted to the State under the Act. The State plan shall provide that all Federal funds so received shall be expended solely for the purposes for which granted and that any such funds not so expended, including funds lost or diverted to other purposes, shall be paid to the U.S. Office of Education.

The State plan shall contain a description of the minimum qualifications of all professional personnel of the State agency engaged in activities for which funds are used under the State plan. Such minimum qualifications shall contain standards of education and experience and other requirements in relation to the duties to be performed. If a merit system exists in the State, the plan shall describe the requirements of such system for such personnel.

§ 166.7 State and local advisory committees.

The State plan shall contain a statement of the policies and procedures to be used in establishing State and local advisory committees on adult basic education in order to improve reporting of State and local administration of programs and to assure that State plan programs are meeting the needs of the Community. The State plan shall indicate whether State and local advisory committees are existing groups or especially established for these purposes and the respective natures thereof.

§ 166.8 Program.

The State plan shall contain a statement of the policies, procedures, criteria, and priorities to be followed by the State agency in approving local educational agency programs which will assure substantial progress (with respect to all segments of the adult population and all areas of the State) in the establishment or expansion of adult basic education programs. Such criteria and priorities shall be designed to assure that first priority will be given to programs which provide for instruction in speaking, reading, or writing the English language for persons functioning at the fifth grade level or below. Second priority will be given to such instruction for persons functioning above the fifth and through the eighth grade level.

(a) Whether and to what extent a program will serve adults in those geographic areas of the State which have high concentration of adults in need of basic education;

(b) Whether and to what extent a program will serve adults with the greatest basic education deficiencies which are impairing their ability to obtain employment and become more productive and responsible citizens;

(c) Whether and to what extent a program has been planned and/or will be conducted in cooperation with Community Action programs, Work Experience programs, VISTA, Work Study programs, Manpower Development and Training programs, Vocational Education programs, and other programs relating to the antipoverty effort (see § 166.11);

(d) Whether and to what extent a program will utilize qualified instructional staff, adequate facilities, equipment, materials, and guidance and counseling services;

(e) Whether and to what extent a program will provide health information and services to the extent available through cooperative arrangements with State health authorities;

(f) Whether and to what extent a program makes provision for effective recruiting of adults for enrollment;

(g) Whether and to what extent a program will provide for the use of personnel in college work study programs, VISTA, and other antipoverty programs;

(h) Whether and to what extent a program incorporates the results of research, or techniques which have been proven effective;

(i) Whether and to what extent a program incorporates innovative or Imaginative instructional methods; and

(j) Whether and to what extent a program provides for effective administration and supervision by the local educational agency to assure efficient and economical operation.

§166.10 Cooperative arrangements between State educational agency and State health authority.

The State plan shall provide for cooperative arrangements between the State educational agency and the State health authority authorizing the use of such health information and services for adults as may be available from such agencies and as may reasonably be nec

essary to enable them to benefit from the instruction provided pursuant to the Act.

§ 166.11 Cooperation in antipoverty efforts.

The State plan shall set forth the policies and procedures which the State agency will follow prior to approving local educational agency programs, and special projects, teacher-training, or research grants to assure maximum cooperation of effort with Community Action programs, Work Experience programs, VISTA, Work Study, and other programs relating to the antipoverty effort and to ascertain that there is no unnecessary duplication of other programs offering adult basic education or teacher training for such programs.

The State plan shall describe the policies, procedures, criteria and priorities which the State agency will follow in making grants for adult basic education to public and private nonprofit agencies for special projects, teacher training and research. The State plan shall set forth the criteria and priorities it will use to assure that priority will be given to special projects, teacher training, and research programs related to speaking, reading, or writing the English language at the eighth grade level or below. The State plan shall state whether the State agency is prohibited under State law from making such grants to private nonprofit agencies and, if so, the basis for this determination.

§ 166.13 State fiscal control and accounting procedures.

(a) General. The State plan shall set forth such fiscal control and fund accounting procedures as may be necessary to assure proper disbursement of funds paid to the State, including funds paid by the State to local educational agencies; funds paid by the State to public and private nonprofit agencies for special projects, teacher training, and research; and all matching funds. Such procedures shall be in accordance with applicable State laws and regulations which shall be cited in the plan. In addition, the State plan shall specify the particular accounting basis (cash, accrual, or obligation) to be used by the State agency and cite the authority under State and local laws, rules, and regulations for such