and storage rooms located in a gymnasium; instrument storage areas adjoining a music studio.

(5) "Library facilities" means rooms or groups of rooms used for the collection, storage, circulation, and use of books, periodicals, manuscripts, and other reading and reference materials, Including the general library, departmental libraries, and rooms for special collections of documents, rooms for storage of films, records, and other audiovisual equipment and materials, rooms for the use by students of special audiovisual and other programmed instructional equipment on an individual basis for self-instruction purposes, library reading and listening rooms, acquisition rooms, cataloguing rooms, document reproduction rooms, circulation and reference desks, and any other similar library service area and the library administrative offices. Rooms used for any such purposes should be counted under library facilities. Library science laboratories and lecture classrooms located in a library building are to be counted as either general classrooms or instructional laboratories and shops.

(6) "Faculty offices" means all rooms or groups of rooms with office-type equipment, which are assigned to one or more faculty members for the performance of administrative, clerical, or faculty duties other than meeting of classes. A studio room in a department of music or fine arts, assigned to one or more faculty members for their own work, even though occasionally used for a student lesson, should be counted as a faculty office. Service areas for faculty offices (e.g., waiting rooms, office files and supply rooms, interconnecting corridors within a suite of offices, private toilets and clothes closets) should be counted together with the offices themselves.

(n) "Instructional television fixed service" (ITFS), as defined by the Federal Communications Commission (47 CFR 74.901 et seq.), means a fixed station operated by an educational organization and used primarily for the transmission of visual and aural instructional, cultural, and other types of education material to one or more fixed receiving locations. Instructional television fixed service stations operate in the portion of the microwave spectrum from 2500 to 2690 megacycles.

(o) "Laboratory and other special equipment and materials" means items of built-in or movable equipment, as de

fined in paragraph (j) of this section, and "materials," as defined in paragraph (p) of this section, which are suitable for use in providing instruction in institutions of higher education, and includes: (1) Audiovisual equipment, such as projectors, recording equipment, and television receivers which are not part of closed-circuit television systems; (2) devices (other than those used for printing, such as printing presses and offset printing machines) to be used for prepаration of audiovisual and other instructional materials; (3) equipment for the maintenance and repair of materials in audiovisual centers; and (4) storage equipment to be used solely for the care and protection of the foregoing items when used in classrooms. Not included under the term are such items as general-purpose furniture, radio or television broadcast apparatus, public address systems, or items for the maintenance and repair of equipment.

(p) "Materials" means those items which with reasonable care and use may be expected to last for more than one year and are suitable for and are to be used in providing instruction in institutions of higher education. The term includes such items as audio and video tapes; discs; slides and transparencies; films and filmstrips; books; models and mock-ups; pamphlets; periodicals for indefinite retention in reference collections, and other printed and published materials such as maps, globes, and charts. The term does not include such items as textbooks (as defined in paragraph (x) of this section); or chemicals, glassware and other supplies which are consumed in use.

(q) "Minor remodeling" means those minor alterations in a previously completed building in space used or to be used as a classroom (as defined in paragraph (g) of this section) or as an audiovisual center or as a closed-circuit television facility, which are needed to make effective use of equipment in providing instruction. The term may also include the extension of utility lines, such as water and electricity, from points beyond the confines of the spaces in which the minor remodeling is undertaken but within the confines of such previously completed building. The term does not include building construction, structural alterations to buildings, building maintenance, repair or renovation.

(r) "Pertinent expenditures for equipment, materials and minor remodeling" means: (1) In connection with projects for laboratory and other special equipment and materials (and directly associated minor remodeling) for improvement of undergraduate instruction in the eligible subjects, the total of all expenditures for such purposes, from both current funds and plant funds (as defined in College and University Business Administration, Volume I, American Council on Education, Washington, D.C., 1952), for the institution or branch campus for which the project application is submitted; and (2) in connection with projects for television equipment and materials (and directly associated minor remodeling) for closed-circuit direct instruction in the eligible subjects, the total of all expenditures for such purposes, from both current funds and plant funds, for the institution or branch campus for which the project application is submitted.

(s) "Project" means a separate proposal for improvement of undergraduate instruction in one or more of the eligible subjects through either: (1) The acquisition (by purchase, lease-purchase, or lease) and use of laboratory and other special equipment and materials (and directly associated minor remodeling); or (2) the acquisition (by purchase, leasepurchase, or lease) and use of television equipment and materials for closedcircuit direct instruction (and directly associated minor remodeling).

(t) "Semester credit hour" means the unit of credit which the institution awards to a student for a class meeting one hour per week for a semester or a laboratory meeting two or three hours per week for a semester. For purposes of this definition the term "semester" means a period of approximately 15 weeks of instruction. Where credits are recorded at an institution or branch campus on the basis of some other length of term, such as a "quarter" or where credits are not normally recorded, the credit hours of other units of accomplishment so recorded are to be converted to semester hour equivalents for purposes of reporting in applications submitted under this part. Any such conversions to semester credit hour equivalents shall be supported by definitive explanations, satisfactory to the State commission, of the basis on which the conversions are calculated and shall in all cases be subject to adjustment by the State commission.

(u) "State commission" means the State agency designated or established pursuant to section 603 of the Act.

(v) "State plan" means the document submitted by the State commission and approved by the Commissioner, which sets forth the standards, methods, and administrative procedures whereby the State commission shall review projects proposed by applicants in the State for Federal assistance under this part and shall determine and recommend the relative priority of each such project and the Federal share of the costs eligible for Federal financial participation.

(w) "Television equipment for closedcircuit direct instruction" means fixed or movable equipment items which are suitable for use in originating, distributing, and receiving programs or units of instruction by closed-circuit television, in institutions of higher education. The term includes studio equipment, control and recording equipment, transmitters, receivers and associated distribution equipment, antennas, and supporting towers for instructional television fixed service as defined by the Federal Communications Commission and for pointto-point microwave relay equipment, but does not include towers, antennas or broadcast transmitters designed to operate on VHF or UHF frequencies in the standard broadcast band. "Closed-circuit direct instruction" includes all uses of television equipment involving the distribution of television instruction from any source (such as television cameras, film chains, video-tape recording or playback apparatus, monoscope devices or receiving antenna) to one or more television monitors or receivers at one or more viewing locations. The term does not include closed-circuit installations for any noninstructional uses, such as monitoring for security purposes.

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

(y) "Undergraduate level" programs of instruction means all courses of regular length which are intended primarily for meeting program requirements for students pursuing bachelor's degrees or first-professional degrees in programs which do not require 3 or more years of previous college work for entry and do not extend beyond the fifth year of college, students pursuing associate degrees, or students enrolled in terminaloccupational programs. Not included under this definition are courses which are intended primarily for meeting program requirements for students pursuing graduate degrees or first professional degrees in programs extending beyond the fifth year of college or requiring 3 or more years of previous college work for entry into the first professional degree program. Also excluded are noncredit courses and conferences.

[31 F.R. 4795, Mar. 22, 1966, as amended at 34 F.R. 8110, May 23, 1969]

§ 171.2 Institutional eligibility.

To qualify for a grant under this part an institution shall meet requirements specified in subsection 801(a) of the Act. An institution which is not accredited by a nationally-recognized accrediting agency or association listed pursuant to section 801 of the Act may qualify, alternatively, by obtaining a certification from the Commissioner (dated no earlier than two years prior to the date of application for a grant) that the institution meets requirements set forth in subsection 801(a) (5) of the Act.

§ 171.3 Conditions for grant approval.

(a) Required assurances. Before approving a grant under this part, the Commissioner shall verify fulfillment of the requirements set forth in subsection 605(b) of the Act.

(b) Maintenance of effort. An assurance that an institution or branch campus will meet the maintenance of effort provision in section 604(b) of the Act shall be supported by a comparison of the budgeted amounts for pertinent expenditures for equipment, materials and minor remodeling (as defined in paragraph (r) of § 171.1) for the Federal fiscal year in which the project application is submitted with the amount actually expended for such purposes for the preceding Federal fiscal year.

(c) Items which may be included. Projects under this part may cover only (1) laboratory and other special equipment and materials (and directly associated minor remodeling) or (2) television equipment and materials for closedcircuit direct instruction (and directly associated minor remodeling), to be used for improvement of instruction at the undergraduate level in one or more of the eligible subjects in institutions of higher education.

(d) Costs which may be included. Projects may be submitted under this part 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, and the cost of engineering studies contracted for within two years prior to such date in connection with projects for closed-circuit television. Costs eligible for inclusion in the project budget shall be further limited to those which will be incurred within 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 within 12 months after such contracts or agreements are entered into.

§ 171.4 Submission and processing of applications.

(a) Closing dates for filing of applications. Closing dates by which applications may be filed with and accepted by the State commission shall be established in the State plan. For each category of applications (i.e., laboratory and other special equipment and materials and directly associated minor remodeling; or television equipment and materials for closed-circuit direct instruction and directly associated minor remodeling) the State plan shall provide not more than two closing dates for any Federal fiscal year. The closing dates for fiscal year 1966 shall be not later than May 31, and closing dates for subsequent fiscal years shall in all cases be between October 1 and February 15. Each State plan may provide for apportionment of the State allotments from funds appropriated for each category of applications, so that specified portions of either or both allotments become available as of specified closing dates, but such an apportionment shall not be required, and in the absence of such a provision in the State plan, the total of each allotment shall be available for grants as of the first applicable closing date in each Federal fiscal year.

(b) Submission of project applications. Applications for grants under this part shall be submitted on forms supplied by the Commissioner, and shall contain such assurances as are required pursuant to the Act and the regulations in this part. Applications shall be submitted directly to the appropriate State commission in the number of copies specified by the State commission, together with such supplemental information as may be required by the State commission. Applications for projects of either category (i.e., laboratory and other special equipment projects or closed-circuit television projects) shall in all cases cover only a single institution or branch campus of an institution. Unless otherwise provided in the applicable State plan, not more than one laboratory and other special equipment application shall be submitted for any single institution or branch campus for a particular fiscal year. In no case may more than one closed-circuit television application be submitted for any single institution or branch campus for a particular fiscal year. The State commission shall accept all applications for grants under Part A of Title VI for institutions of higher education in the State, provided such applications are submitted on forms provided by the Commissioner, and shall officially record the date of receipt of each application by the State commission. Any application which is incomplete shall after its date of receipt is recorded, be returned promptly to the applicant with an explanation of deficiencies to be corrected before the application can be further processed by the State commission. Authorization from the Federal Communications Commission is required to construct and to operate each transmitter to be used in Instructional Television Fixed Service, as well as point-to-point microwave relay devices. In any case where a closedcircuit television project involves equipment requiring such authorization(s), the applicant shall be required to include documentary evidence either: (1) That the applicant holds such authorizations, or (2) that an application for such authorization has been accepted for filing by the Federal Communications Commission.

(c) Verification of application data and institutional and project eligibility. Before determining the relative priority or Federal share for any application for grant assistance under title VI of the Act, the State commission shall verify the validity of data contained in the application, and shall verify that the institution and the project appear to meet basic eligibility requirements set forth in the Act and the regulations governing

the administration of the Act. In any case where in the opinion of the State commission a question exists as to the eligibility of an institution or of a project, the State commission shall promptly forward a copy of the application to the Office of Education for a clarification of such eligibility. In any such case, the State commission shall continue to process and rank such application as if it were eligible, but shall delay final action on all applications under the same category considered as of the same closing date until receipt of notification by the Office of Education of the disposition of the eligibility question.

(d) Determination of relative priorities and Federal shares. All applications received by each specified closing date, and verified by State commission review to be accurate and complete, shall be considered together (projects for laboratory and other special equipment and materials will be considered separately from projects for television equipment and materials) and assigned relative priorities and recommended Federal shares in accordance with the provisions of the State plan.

(e) Procedures where funds are insufficient to provide full Federal shares for all eligible projects. In any case where the funds available in a State allotment for projects considered as of a particular closing date are insufficient to cover all eligible applications, the State commission shall nevertheless determine the full Federal share, calculated according to the State plan, for all projects in their order of relative priority, until the remaining available funds are insufficient to provide the full Federal share as calculated for the next project in order of priority.

(1) In such cases occurring for the first closing date in a Federal fiscal year, where a second closing date is provided under the State plan and the allotment is approtioned between the closing dates, all projects for which the full Federal share as calculated cannot be provided for by the available funds, together with the remainder of the funds apportioned to the first closing date, shall be carried over to the second closing date: Provided, however, That a State plan may specify, as an alternative procedure, that sufficient funds will be made available immediately from the funds apportioned to the second closing date, so that the full Federal share as initially calculated will be available for the first project for which only a part of the Federal share would otherwise have been available.

(2) In such cases occurring for the second closing date in a Federal fiscal year, or where all funds in the State allotment are apportioned to the first closing date or where only a single closing date is provided, the amount of the remaining funds shall be offered as a reduced Federal share for the first project in order of relative priority for which less than the full Federal share as calculated is available. An applicant offered such a reduced Federal share shall be entitled to reduce the scope of the project to a level not less than that required to qualify under the State plan for such a Federal share amount.

(f) Recommendation by State commissions. Promptly upon completing its consideration of applications as of each closing date, and no later than June 10 of the Federal fiscal year 1966 and March 31 of subsequent fiscal years, each State commission will forward to the Commissioner: (1) A current project report, on forms supplied by the Commissioner, for the pertinent category of applications, listing each application received for the particular fiscal year, each application returned to the applicant and the reason for return of such application, each application considered as of the closing date, and the priority and Federal share determined according to the State plan for each project considered; and (2) the application form and exhibits in the number of copies requested by the Commissioner, for each project assigned a priority high enough to qualify for a Federal grant within the amount of funds available in the allotment for the State.

(g) Notification to applicants. The State commission shall promptly notify each applicant of the results of all final determinations regarding its application as of each closing date, and the records of official State commission proceedings shall be a matter of public record within the State.

(h) Disposition of applications which are not recommended for grants. Applications which are not recommended for a grant within the fiscal year in which they are filed, shall be retained by the State commission until notified that all recommended applications for such fiscal year have been approved by the Commissioner. New applications shall be required to be filed each fiscal year for any project which does not receive a

recommendation for a grant and which the applicant desires to have reconsidered in a subsequent year.

(i) Offer and acceptance of grant. For a project application which meets all eligibility requirements the Commissioner will approve the application and reserve Federal funds from the appropriate State allotment and will prepare and send to the applicant a grant award, which sets forth the pertinent terms and conditions, and which is contingent upon acceptance by the applicant within a specified period of time. The accepted grant award will constitute a formal grant agreement between the Commissioner and the applicant, for completion of the project and for Federal grant participation in the eligible costs of the project, according to the conditions contained therein.

(j) Amendment of project applications. Any time prior to a closing date for which an application is to be considered, the applicant may make changes in the application by written notification to the State commission. After any such closing date, no changes in applications shall be permitted, except corrections or submission of additional data as requested by the State commission and reductions in project scope as provided for in paragraph (e) of this section. Budgets for projects as approved, and the amount of Federal participation based thereon, shall be based upon tentative equipment lists which will be required with each application. Applicants may, however, without amending their applications, substitute other eligible items which are similar in nature and are in line with the plan for improvement of undergraduate instruction set forth in the application as originally approved. Approval by the Commissioner shall be required for changes of more than ten percent in the amount budgeted under the project for the improvement of instruction in any particular eligible subject. Once an application has been recommended for a grant by a State commission, no increase in recommended Federal grant funds for the particular project will be considered, except where funds become available to supplement reduced Federal shares for projects for which the full Federal share calculated under the State plan was not available at the time the project application was recommended by the State commission. [31 F.R. 4795, Mar. 22, 1966, as amended at 31 F.R. 7128, May 14, 1966]