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(b) Purpose of the Act. The purpose of the Act is to provide a national program of incentives and support for the several States individually and in cooperation with each other in their establishing and maintaining State and interstate technical service programs in order that the benefits of federally-financed research, as well as other research, may be placed more effectively in the hands of American business, commerce and industrial establishments throughout the country. As stated in the Act, this program is essential to the growth of the economy, to higher levels of employment, and to the competitive position of U.S. products in world markets.

(c) Application of part. This part applies to any technical services program for which Federal financial assistance is authorized under the Act.

(d) Delegation of authority. The authority of the Secretary of Commerce under the Act was delegated to the Director, Office of State Technical Services, subject to such policies and directives as the Assistant Secretary of Commerce for Science and Technology may prescribe, by Department Order 7-A, effective November 19, 1965 (30 F.R. 15042, Dec. 4, 1965).

(c) "State" means one of the States of the United States, the District of Columbia, the Commonwealth of Puerto Rico or the Virgin Islands.

(d) "Technical services" means activities or programs designed to enable businesses, commerce and industrial establishments to acquire and use scientific and engineering information more effectively through such means as

(1) Preparing and disseminating technical reports, abstracts, computer tapes, microfilm, reviews, and similar scientific or engineering information, including the establishment of State or interstate technical information centers for this purpose;

(2) Providing a reference service to identify sources of engineering and other scientific expertise; and

(3) Sponsoring industrial workshops, seminars, training programs, extension courses, demonstrations, and field visits designed to encourage the more effective application of scientific and engineering information.

(e) "Designated agency" means the institution or agency which has been designated as administrator of the program for any State or States under section 3 or section 7 of the Act.

(f) "Participating institution" means each qualified institution in a State which participates in the administration or execution of the State technical services program as provided by the Act.

(g) "Matching funds" means funds that are provided to a qualified institution by the State or by other nonFederal sources and may include fees, contributions, donations, gifts of money, the fair market value of services of personnel, the fair market value for the use for real or personal property, special user charges and tuition fees, received from persons and private profit or nonprofit firms or institutions. Matching funds may include non-Federal funds expended on existing technical services programs of the State constituting a part of the State's annual program as approved under the Act and these regulations. See § 700.15.

(h) "Advisory council" means the council appointed by the designated agency under section 9 of the Act and § 700.7.

(i) "Planning grant" means a grant awarded to a designated agency, other than that designated under section 7 of the Act, to assist in the preparation of

the 5-year plan and the initial annual technical services programs.

(j) "State program" means the annual technical services program submitted by the designated agency on behalf of a State or on behalf of two or more States jointly, but does not refer to a program element.

(k) "Program element" means an individual activity included as part of the annual technical services program.

(1) "Special merit program” means a program determined by the Secretary to be entitled to Federal financial assistance under section 10 (c) of the Act to accomplish the purposes of the Act.

(m) "Designee" means the person designated by the Governor of a State to furnish the certifications required under section 5 of the Act. The designee may not be an officer or employee of the designated agency or of a participating institution nor a member of the advisory council.

(n) "Qualified institution" means an agency, institution or organization meeting criteria in § 700.10.

(0) "Recipient" means the designated agency, participating institution, qualified institution receiving assistance under the Act, or person authorized to receive payments in support of each approved program.

the purpose of planning, using all or part of the planning grant. A designated agency established under section 7 of the Act, acting in behalf of interstate participants, while ineligible to receive a direct planning grant, may receive all or part of a State's planning grant under an agreement between two or more States for the purpose of joint planning. There is no requirement that a State match or otherwise furnish any portion of planning grant funds paid to its designated agency under section 10(e) (1) of the Act.

(b) Amount and term. No designated agency may receive a planning grant in excess of $25,000 a year. In the discretion of the Director, a planning grant may be paid for each of the first 3 fiscal years commencing with fiscal year 1966. However, after the 5-year plan and the initial annual technical services programs are submitted to the Director and approved, no other planning grant will be paid unless the Director determines that there is a specific need demonstrated

(1) For planning in a new direction which is not included in the approved 5-year plan and which is to be included in a future revision of the plan; or

(2) For additional planning in the development and preparation of the 5-year plan or revisions thereto reflecting new or more detailed insight into the State's economic conditions and technical resources leading to additional opportunities for the transfer of technology through the provisions of technical services not covered in the previously approved 5-year plan; or

(3) For additional planning in the development and preparation of the annual technical services programs.

(c) Procedure to obtain planning grant. A designated agency may obtain a planning grant by a written request to the Director only after the Governor of the State concerned has notified the Secretary or the Director that such State intends to participate under the Act and has designated under section 3 of the Act the institution or agency making such request. The request should contain the following information:

(1) A statement of the appropriate State laws and regulations under which the Governor has designated such institution or agency to be the designated agency and under which authority the State program will be carried out;

(2) A clear and succinct statement justifying the need for the planning grant and the specific purposes for which it is to be used;

(3) The total amount requested for these purposes;

(4) A budget showing a breakdown of the estimated amounts which will be expended during the fiscal year for these purposes with the funds furnished by the planning grant; and

(5) The name of the officer of the designated agency who is authorized to act for the designated agency.

[31 F.R. 5951, Apr. 19, 1966, as amended at 31 F.R. 16265, Dec. 20, 1966]

$ 700.5 Five-year plan.

(a) To receive Federal financial assistance for an annual technical services program, a designated agency shall prepare and submit a 5-year plan which

(1) Outlines the technological and economic conditions of the State, taking into account its region, business, commerce, and its industrial potential and identifies the major regional and industrial problems;

(2) Identifies the general approaches and methods to be used in the solution of these problems and outlines the means for measuring the impact of such assistance on the State or regional economy; and

(3) Explains the methods to be used in administering and coordinating the technical services program.

(b) A designated agency may revise the 5-year plan it previously submitted on an annual basis during the period of the plan.

(c) No 5-year plan of a State shall be accepted for review and approval by the Director unless the Governor of the State or his designee certifies that the plan is consistent with the State's policies and objectives.

into a contractual arrangement, the type of contract and identity of the contractor shall be furnished as well as information concerning its cost, term and the basis for selection of the contractor;

(2) Contains a detailed budget, together with procedures for adequate fiscal control, fund accounting and auditing, to assure proper disbursement for funds paid to the State under the Act; and

(3) Indicates the specific responsibilities assigned to each participating institution in the State, including a statement of the method by which the participating institutions were selected for their respective responsibilities.

(b) The designated agency shall provide information that it

(1) Has invited all qualified institutions in the State to submit proposals for providing technical services under the Act. The invitations shall be publicly announced and issued in writing to institutions in the State that have been qualified under § 700.10.

(2) It has coordinated its programs with other States (when regional cooperation is planned) and with other publicly supported activities within the State and the extent and manner in which such coordination has been carried out by identifying such programs and activities and indicating how any duplication of other technical services programs in the State has been avoided.

(c) No annual technical services program shall be accepted for review and approval of the Director unless the Governor of the State or his designee certifies that the designated agency has

(1) Invited all qualified institutions in the State to submit proposals for providing technical services under the Act;

(2) Coordinated its programs with other States (when regional cooperation is planned) and with other publicly supported activities within the State, as appropriate;

(3) Established adequate ethical standards and rules to insure that no officer or employee of the State, the designated agency or any participating institution shall receive compensation for technical services he performs, for which funds are provided under the Act, from sources other than his employer, and that no such officer or employee shall otherwise maintain any private interest in conflict with his public responsibility.

Each designated agency will furnish for certification in this regard a copy of the ethical standards and rules which are established to avoid any conflict of interest in connection with the administration of any plan or program receiving Federal financial assistance under the Act. Such rules shall clearly set forth the standards and procedures which officers, employees and consultants can follow to avoid any conflict of interest:

(4) Determined that matching funds will be available from State or other nonFederal sources. In addition, each designated agency shall furnish a statement to the Director showing the basis for the determination by identifying such sources. The sources of matching funds shall be those defined in § 700.2(g) and shall meet the requirements of § 700.8(i);

(5) Determined that such technical services program does not provide a service which on the date of such certification is economically and readily available in such State from private technical services, professional consultants, or private institutions. Each designated agency shall furnish a statement to the Director showing the basis for such determination;

(6) Planned no services specially related to a particular firm or company, public work or other capital project except insofar as the services are of general concern to the industry and commerce of the community, State or region. If the designated agency has planned services which are specially related to a particular firm or company, public work or other capital project, a statement shall be furnished by the designated agency to the Director describing such services and the basis for the determination that such services are of general concern to the industry and commerce of the community, State or region; and

(7) Provided for making public all reports prepared in the course of furnishing technical services supported under the Act or for making them available at cost to any person on request. Each designated agency shall furnish the Director a copy of the fee schedules for such reports or a statement showing the steps that have been taken to make such reports public.

$ 700.7 Advisory council.

(a) Appointment. Each designated agency shall appoint a public advisory council (representing broad community interests) pursuant to the requirements