(e) An estimated budget itemizing the amount of funds which will be required by the State agency for developing and administering the State plan shall be submitted as a part of the annual program plan. (20 U.S.C. 1005 (a) (5) and (6))

§ 173.15 Approval of State plan, noncompliance; judicial review.

(a) The Commissioner shall approve any State plan or amendment thereof which complies with the provisions set forth in the Act and in this subpart. No plan, or amendment thereof, shall be finally disapproved until the State agency or institution submitting the plan is afforded reasonable notice and opportunity for a hearing. (20 U.S.C. 1005 (b))

(b) Where the Commissioner, after giving reasonable notice and opportunity for a hearing to the State agency or institution administering a State plan approved under Section 105(b) of the Act, finds that (1) the State plan has been so changed that it no longer complies with any provision of section 105(b) of the Act, or that (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 that the State is no longer regarded as eligible to participate in the program until the Commissioner is satisfled that there is no longer any such failure to comply. (20 U.S.C. 1007(b))

(c) Final actions of the Commissioner with respect to approval of a State plan or amendment thereto or changes in or noncompliance with an approved State plan or amendment thereto are subject to judicial review, pursuant to section 108 of the Act. (20 U.S.C. 1008)

§ 173.16 Ineligible programs.

No payment may be made from a State's allotment under this part for (a) any community service program which relates to sectarian worship, or (b) any community service program which is provided by a school or department of divinity. An institution of higher education which has a school, branch, department, or other administrative unit within the definition of "school or department of divinity" as set out in § 173.1 is not precluded for that reason from participating in the program described in this subpart, if the community service program is not offered by that school, branch, department, or administrative unit and, as in all other cases, the community service program is not related to sectarian instruction or religious worship. (20 U.S.C. 1011) § 173.17

[Reserved]

§ 173.18 Fiscal assurances.

The State plan shall contain:

(a) A statement of the policies and procedures designed to assure that Federal funds allotted to the State for the program described in this subpart will

not be used to supplant State or local funds or funds of institutions of higher education but to supplement and, to the extent practicable, to increase the amount of such funds that would otherwise be available for community service programs.

(b) A statement of assurance that the State agency will, prior to approval of any community service program under the plan, provide the certification required under § 173.24. (20 U.S.C. 1005 (a) (4))

§ 173.19 Fiscal procedures.

The State plan shall meet the requirements of 105(a) (5) of the Act pertaining to fiscal and accounting procedures. (20 U.S.C. 1005(a) (5))

§ 173.20 Institutional assurances.

(a) The State plan shall contain a statement of assurance that, prior to approval of any community service program under the plan, each institution of higher education proposing such community service program shall submit to the State agency an assurance:

(1) That the proposed program is not otherwise available;

(2) That the conduct of the program or performance of the activity or service is consistent with the institution's overall 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; and

(3) That, if courses are involved, such courses are extension or continuing education courses, and (1) that they are fully acceptable toward an academic degree, or (ii) that they are of college level as determined by the institution offering the courses.

(b) Copies of such assurances required by paragraph (a) of this section shall be maintained by the State agency and made available to the Commissioner upon request. (20 U.S.C. 1002)

§ 173.21 Certification of State plan.

The State plan or amendment shall include as a part or appendix thereto:

(a) A certification by the official of the State agency authorized to submit the State plan that the plan (or amendment) has been adopted by the State agency and will constitute the basis for operation and administration of the programs described therein;

(b) A certification by the appropriate State legal officer that the State agency named in the pla is the sole State agency for the preparation and administration of the plan and has authority under State law to develop, submit, and administer or supervise the administration of the plan, and that all the provisions contained in the plan are consistent with State law. (20 U.S.C. 1005(a)(1))

(a) The State plan shall provide that the State agency will make and submit to the Commissioner the reports listed below in accordance with procedures established by the Commissioner:

(1) A detailed statement, describing the proposed operation of each community service program, to be submitted immediately upon approval of such program by the State agency;

(2) A report of the total amount of a State's, allotment obligated or expended during a particular fiscal year, to be submitted at the close of such fiscal year;

(3) An annual report containing an evaluation of the State plan program and its administration in terms of the plan provisions and program objectives;

(4) A copy of any independent evaluations of the State plan, its program. objectives, and/or administration, if obtained by any State, State agency or institution, or State advisory council; and

(5) Any other reports containing such information in such form as the Commissioner may from time to time require in order to carry out his functions under the Act.

(b) The State shall maintain such records afford such access thereto, and comply with such other provisions as the Commissioner may find necessary to substantiate and verify the information contained in the reports. (20 U.S.C. 1005 (a) (8))

§ 173.23 Allotment and reallotment.

(a) of the sums appropriated the Commissioner, pursuant to section 103 (a) of the Act, shall allot $25,000 each to Guam, the Commonwealth of Puerto Rico, American Samoa, and the Virgin Islands and $100,000 to each of the other States, and he shall allot to each State an amount which bears the same ratio to the remainder of such sums as the population of the State bears to the population of all States.

(b) In order to provide a basis for reallotment by the Commissioner pursuant to section 103(b) of the Act, each State agency will submit, upon request of the Commissioner by such date(s) as the Commissioner may specify, a statement showing all estimated anticipated needs during the remainder of the current fiscal year for carrying out the State plan. The statement will contain estimates based on the estimated costs (1) of completing community service programs already approved without expansion, (2) of expanding or modifying already approved community service programs, and (3) of approving new community service programs which will further carry out the objectives of the plan. The Commissioner may also request any additional information on such statement as he desires for the purpose of making reallotment.

(e) Subsequent to the review of the above described required statement and prior to the date fixed by the Commissioner for reallotment of funds, the Commissioner will notify each State agency affected by reallotment of his determination respecting the State's allotment. The Commissioner shall thereafter either modify the amount authorized for payment to the State or, if an overpayment has already been made, direct the State to return to the Commissioner whatever amount the Commissioner determines the State does not require. (20 U.S.C. 1003(b))

§ 173.24 Federal financial participation.

(a) The Federal Government will pay from each State's allotment an amount equal to 66 percent of the total amount expended by the State agency and the institutions participating under the State plan, except that, in calculating such total amount, there shall be excluded any amounts received for the same purpose under any other Federal program and the matching funds required therefor. Where fees, if any, exceed the non-Federal share of the cost of the program, as determined above, the Federal share shall be reduced by the amount of this excess. (20 U.S.C. 1006)

(b) No payment for any fiscal year will be made, however, with respect to expenditures for developing or administering the plan by the State agency which exceed 5 percent of the total eligible costs for that year or $25,000, whichever is greater. (20 U.S.C. 1006) § 173.25

share.

Certification of non-Federal

As a condition to receipt of any payments under the program described in this subpart, the State agency must submit to the Commissioner, both at the time that it initially determines the institutions of higher education to participate under the State plan; and each time that it approves a new program involving an institution not previously participating, a certification that all institutions participating under the plan 'will together have available during that year from non-Federal sources for expenditure for extension and continuing education programs not less than the total amount actually expended by those institutions for extension and continuing education programs from such sources during the Fiscal Year 1965, plus an amount which is not less than the nonFederal share of the costs of community service programs for which Federal financial assistance is requested. The certification shall also state that the State agency has obtained all information including records documenting expenditures necessary to make the above-noted finding and that such documents shall be kept by the State agency and made available to the Commissioner upon request. The certification required under

this section shall constitute the basis for the finding required to be made by the Commissioner under section 107(b) of the Act. (20 U.S.C. 1006(b))

§ 173.26 Interstate transfer of allot

ments.

Where two or more States agree that a portion of the Federal allotment of one State be added to and combined with that of the other State, there shall be submitted to the Commissioner, as part of both State plans or as amendments thereto, the following information:

(a) A request that a specified amount of one State's allotment be transferred to the other State for purposes described therein;

(b) A description of the community service program(s) for which the funds will be used by the recipient State:

(c) A statement of the total amount to be expended for such program(s) and the amount of the non-Federal share thereof;

(d) A statement indicating how the requirements for matching funds and/or maintenance of effort will be assumed by either or both States;

(e) A statement showing how such program(s) will assist in the solution of community problems of concern to both participating States; and

(f) A certified statement from the recipient State agency that it will use the funds for the purposes identified by the State requesting such transfer. (20 U.S.C. 1003 (c))

Subpart C-Special Programs and Projects § 173.40

Applicability.

The regulations in this subpart apply to awards made by the Commissioner pursuant to section 106 of the Act for special community service and continuing education programs and projects designed to seek solutions to national and regional problems relating to technological and social changes and environmental pollution. (20 U.S.C. 1005a(b))

§ 173.41 Eligible projects.

(a) From funds available under section 106 of the Act, the Commissioner may provide financial support for special programs and projects of national or regional significance which are consistent with the purposes of section 101 of the Act and which involve:

(1) Innovative methods, systems, or materials which the Commissioner determines may have national or regional significance or be of special value in promoting effective solutions to defined problems; or

(2) Innovative programs carried out In cooperation with other Federal, or federally assisted State and local, programs which the Commissioner determines have unusual promise in promoting a coordinated or comprehensive educational approach to problems in an entire region or the nation as a whole; or

(3) Demonstrations of educational strategies which may prove effective on a national or regional basis in assisting community leaders, government officials, and others involved in the search for solutions to community problems.

(b) Each project is expected to complement and advance current programs, investigations, or experimentation in continuing education for adults.

(c) Projects must also be designed to be of optimum use in the further development of State programs of community service and continuing education by haying a high potential for replication or adaptation by other institutions of higher education. (20 U.S.C. 1005a; S. Rept. 92-346, p. 10)

§ 173.42 Eligible applicants.

Only the following are eligible to apply for financial assistance under this subpart;

(a) Institutions of higher education; and

(b) Combinations of institutions of higher education. (20 U.S.C. 1005a)

§ 173.43 Applications for grants.

(a) Applications under this subpart shall contair. (in addition to the requirements of Part 100a, Subpart B of this chapter):

(1) The portion of the total project cost to be borne by the applicant, which shall be not less than 10 per centum;

(2) An assurance that no fees and charges will be collected from participants with respect to any training or instruction offered in the project; and

(3) An assurance that the State Agency for the Community Service and Continuing Education Program has been given an opportunity to comment on the proposed application. (S. Rept. 92-346, p. 10)

(b) Requests for application information shall be sent to: Community Service and Continuing Education Program, Bureau of Postsecondary Education, U.S. Office of Education, Washington, D.C. 20202. (20 U.S.C. 1005a)

§ 173.44 Review of applications.

In evaluating applications that meet the requirements of § 173.41 of this subpart the Commissioner will also consider the following criteria, in addition to the criteria set forth in § 100a.26(b) of this chapter:

(a) The extent to which the project is responsive to such regional or national priorities for Community Service and Continuing Education as the Commissioner, after consultation with the National Advisory Council on Extension and Continuing Education, may establish and publish in the FEDERAL REGISTER.

(b) The extent to which the project has unusual promise in establishing or improving prograins of community service and continuing education in institutions of higher education;

(c) The extent to which the project employs or will result in new approaches, methods and materials which will be of value in increasing the effectiveness of continuing education programs for. adults; and

(d) The cxtent to which the project is coordinated with related Federal, State or institutional programs in order to promote a comprehensive approach to community problem solving through the continuing education of adults. (20 U.S.C. 1005a)

§ 173.45 Public information.

The grantee is responsible for making announcements concerning the project and noting the availability of Federal support therefor. For certain projects a brochure or circular may be developed which will provide concerned adults with information by which they may participate in the project. Pertinent information concerning any other type of public information shall be sent to the Community Service and Continuing Education Program, U.S. Office of Education, Washington, D.C. 20202. (20 U.S.C 1005a)

$173.46 Reporting requirements.

(a) Progress reports shall be submitted in accordance with the requirement stated in the award. Each report shall include a brief description of work completed during the reporting period, problems encountered, and plans for the next reporting period.

(b) Special reports shall be submitted the Office of upon request from Education.

(c) Before or at the expiration of the grant, the grantee shall submit thirty duplicated copies of a final report and an accompanying abstract.

(d) The Office of Education shall be provided with a copy of any independent evaluations of the project, its operations and accomplishments, or studies of any other nature.

(e) Submission of Reports. All reports are to be submitted to: Grant and Procurement Management Division, Postsecondary Education Branch, U.S. Office of Education, Washington, D.C. 20202. (20 US C. 1005a)

APPENDIX A

PART 4-PROPOSAL SUBMISSION

Section 4.1 Number of copies.

4.2 State agency consultation. PART 5-GENERAL POLICIES Section 5.1 Public information. 5.2 Reporting requirements.

PART 1-INTRODUCTION

SEC. 1.1 Scope of guidelines. (a) The guidelines contained in this document are recommendations and suggestions for meeting the legal requirements which apply to Federal assistance under the Higher Education Act, Title I, section 106. The legal requirements include the Act itself (20 USC 1001-1011) and the regulations (45 CFR Part 173). The guidelines are not 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 USC 1001 et. seq.; 113 Cong. Rec. 5936, (daily ed. May 23, 1967) (United States v. Jefferson County Board of Education, 872 F2d 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 20 USC 1005a and the guideline affects section 173.41 of the regulations (45 CFR 173.41) the following citation will be placed on the line immediately following the guideline: (20 USC 1005a; 45 CFR 173.41). If no particular section of the regulation is affected, no citation to the Code of Federal Regulations (CFR) will be made. (20 .S.C. 1232(a)).

SEC. 1.2 Purpose of section 106. (a) Title I of the Higher Education Act of 1965 (Pub. L. 89-329) established a State grant program designed to assist the people of the United States in the solution of community problems ... by making grants to strengthen the community service and continuing education programs of colleges and universities.

(b) Thus, the Community Service and Continuing Education Program is implementing the concept of education as a continuing life-long and dynamic process through which adults may lead more meaningful and useful lives and through which concerned communities can improve their operations and services. Since 1966 this Federal program has supported through State determined programs the development of educational activities for adults in more than 1,000 colleges and universities.

(c) With the passage of the Education Amendments of 1972 (Pub. L. 92-318) the Commissioner of Education is now authorized to make awards to institutions of higher education for special programs and projects which are designed to seek solutions to national and regional problemas relating to technological and social changes and environmental pollution.

(d) These guidelines describe the provisions for Special Programs and Projects contained in section 106 of the Act, and outline procedures for proposal preparation and submission, and set forth general policies and priorities for experimental and demonstration projects related to national and regional problems. (20 U.S.C. 1006a)

PARTS-ELIGIBILITY

SEC. 2.1 Eligible applicants. A single, accredited institution of higher education, or combinations of such institutions, are the only eligible applicants for grants under section 106 of the Act. "Combinations of such institutions" means two or more colleges or universities grouped in a consortial arrangement. (20 U.S.C. 1005a; 45 CFR 173.42)

SEC. 2.2 Eligible projects. Projects should be based on a design for and implementation of an organized continuing education activity for adults. Special projects may be either experimental or demonstration activities, carried out on an objective and systematic basis, which seek solutions to national or regional problems related to technology and social changes and environmental pollution, and which involve:

(a) Innovative methods, systems, or materials which the Commissioner determines may have national or regional significance or be of special value in promoting effective solutions to such problems; or

(b) Innovative programs carried out in cooperation with other Federal, federally assisted, State, or local programs which the Commissioner determines have unusual promise in promoting a coordinated or comprehensive approach to problems in an entire region or the nation as a whole, or

(c) Demonstrations of educational strategies which may prove effective on a national or regional basis in assisting community leaders, government officials, and others involved in the search for solutions to community problems. In addition:

(d) Each project is expected to complement and advance current programs, investigations, or experimentation in continuing education for adults.

(e) Projects must also be designed to be of optimum use in the further development of State programs of community service and continuing education by having a high potential for replication or adaptation by other institutions of higher education. (20 U.S.C. 1005a; S. Rept. 92-348, p. 10; 45 CFR 173.41)

PART 3-PROPOSAL EVALUATION

SEC. 3.1 Review and assessment. The following criteria will be employed in the review and assessment of each proposed project:

(a) The extent to which the project is responsive to such regional or national priorities for Community Service and Continuing Education as the Commissioner may establish;

(b) The extent to which the project has unusual promise in establishing or improving programs of community service and continuing education in institutions of higher education;

(c) The extent to which the project employs or will result in new approaches, methods and materials which will be of value in Increasing the effectiveness of continuing education programs for adults;

(d) The extent to which the project is coordinated with related Federal, State or institutional programs in order to promote a comprehensive approach to community problems through the continuing education of adults. (20 U.S.C. 1005a; 45 CFR 178.44)

PART 4-PROPOSAL SUBMISSION

SEC. 4.1 Number of copies. One copy of the application form must bear the signature(s) of the official(s) authorized to submit the proposal. On the remaining copies the name(s) of the official(s) need only be typed. Completed proposals are to be submitted in six (6) copies.

(20 U.S.C. 1005a; 45 CFR 173.43 (c))

SEC. 4.2 State agency consultation. The institution(s) submitting a proposal should attach a letter describing the extent to which the proposed project has been discussed with State Administrator(s) for Community Service and Continuing Education in the state(s) affected. (20 U.S.C. 1005a; 45 CFR 173.43 (a) (7))

PART 5-GENERAL POLICIES

SEC. 5.1 Public information. The recipient is responsible for making announcements concerning the project and noting the availability of Federal support therefor. For certain projects a brochure or circular may be developed which will provide concerned adults with information by which they may participate in the project. (20 U.S.C. 1005a; 45 CFR 173.45)

SEC. 5.2 Reporting requirements—(a) Progress Report. Three (3) copies of progress reports shall be submitted in accordance with the requirement stated in the award. Each report shall include a brief description of work completed during the reporting period, problems encountered, and plans for the next reporting period.

(b) Special Reports. Special reports shall be submitted upon request from the Office of Education.

(c) Final Project Report. Before or at the expiration of the grant, the grantee shall submit thirty (30) duplicated copies of a final report and an accompanying abstract.

(d) Independent Evaluations. The Office of Education shall be provided with a copy of any independent evaluations of the project, its operations and accomplishments, or studies of any other nature.

(e) Submission of Reports. All reports are to be submitted to:

Grant and Procurement Management Divi-
slon Postsecondary Education Branch
US. Office of Education
Washington, D.C. 20202

(20 T.S.C. 1005a)

[FR Doc.75-6886 Filed 3-14-75;8:45 am)