§ 130.19 Long-range program.

(a) The long-range program shall be developed by the State library administrative agency with the advice of the State advisory council and in consultation with appropriate staff of the U.S. Office of Education, and shall be annually reviewed and revised in accordance with changing needs in the States for assistance under the Act and the results of evaluations and surveys of the State agency and the State advisory council. Annual revisions shall be incorporated as a part of the annual program for each fiscal year.

(b) The long-range program shall contain the following:

(1) A description of the State's identified present and projected library needs;

(2) A plan of action for meeting those identified needs with funds under the Act over the next 5 fiscal years beginning with the fiscal year in which the program is submitted;

(3) A statement of the following policies, criteria, priorities, and procedures, to be updated as progress toward meeting the State's library needs requires:

(i) Policies and procedures for the periodic evaluation of the effectiveness of programs and projects supported under the Act;

(ii) Policies and procedures for appropriate dissemination of the results of such evaluations and other information pertaining to such programs or projects;

(iii) Policies and procedures for the effective coordination of programs and projects supported under the Act with library programs and projects operated by institutions of higher education or local elementary or secondary schools (including those receiving Federal assistance under title II-A of the Higher Education Act of 1965 and title II of the Elementary and Secondary Education Act of 1965) and with other public or private library service programs;

(iv) Criteria used in allocating funds under title I of the Act among the purposes set forth in section 102 of the Act and § 130.4, which criteria shall be consistent with the criteria set forth

State will expend from Federal, State, and local sources an amount not less than the amount expended by the State from such sources for State institutional library services and library services to the physically handicapped during fiscal year 1971;

(v) Criteria, policies, and procedures for the approval of applications for the construction of public library facilities under title II of the Act, which criteria, policies and procedures will insure that every local or other public agency whose application for funds under the plan with respect to a project for construction of public library facilities is denied will be given an opportunity for a hearing before the State library administrative agency;

(vi) Criteria, policies and procedures for the approval of applications for interlibrary cooperation under title III of the Act.

(20 U.S.C. 351a(12), 351d(d), 354, 355c, 355e2)

§ 130.20 Annual program.

The annual program shall be developed by the State library administrative agency with the advice of the State advisory council and in consultation with appropriate staff of the U.S. Office of Education, and shall contain the following:

(a) A description of a program for the use of funds under each of the titles of the Act in such detail as may be required by the Commissioner, and of how the program will achieve fulfillment of the State's library needs set forth in the long-range program in a manner consistent with the policies, criteria, priorities, and procedures specified in the long-range program. The program description shall include

(1) A description of the specific activities to be carried out by the State in the fiscal year with funds for library services under title I of the Act for the purposes set forth in section 102 of the Act and § 130.4; and

(2) A description of the specific activities to be carried out by the State in the fiscal year with funds for interlibrary cooperation under title III of the Act for the purposes set forth in section 302 of the Act and § 130.6.

(b) An annual extension of the 5year long-range program for 1 additional year, taking into consideration the results of evaluations of the State's library program by the State agency and the State advisory council. (20 U.S.C. 351a(13), 354, 355c, 355e-2)

§ 130.21 Notification of construction project approval and completion.

(a) The State agency shall submit to the Commissioner

(1) Written notification of its approval of each library construction project under Title II of the Act:

(2) Written notification of the completion of each such project. This notification shall include the project name and number, location, population served, type of library, type of construction, size of facility, the funds budgeted by source and major category, construction schedule, and completion date. The notification shall be submitted within 30 days after such approval and again within 30 days after project completion. Forms for these purposes will be furnished by the Commissioner.

(b) (1) The effective date of the library construction project shall be no earlier than the date on which the State agency approves the project.

(2) No construction contract in furtherance of the project may be made by the applicant until

(i) After the effective date of the project; and

(ii) After the State has received from the Commissioner (or his designee) acknowledgment of the receipt of the notification required by paragraph (a) of this section.

(20 U.S.C. 355c)

§ 130.22 Amendment of State plan.

(a) [Reserved]

(b) Long-range program. The longrange program shall be amended to reflect changes in:

(1) Estimates of present and projected program needs;

(2) The plan of action for meeting these needs; and

(3) Policies, criteria, priorities, and procedures.

(c) Amendments of the basic State plan and the long-range program shall

§ 130.31 Federal and State shares of eligible expenditures.

(a) General. (1) The Federal share for each State under titles I and II of the Act will be promulgated by the Commissioner pursuant to section 7(b) of the Act (20 U.S.C. 351e(b)). (2) The State share for each State for titles I and II shall be the difference between the cost of activities under the State plan and the applicable Federal share. (3) The Federal share for each State under title III shall be 100 percent.

(b) Limitation. (1) The expenditures which are to be considered in computing the State share for library services under title I of the Act are only those that are made from public funds. Public funds include contributions from private organizations or individuals if they are deposited in accordance with State and local laws and regulations to the account of the State or political subdivision, or agency thereof, without conditions or restrictions which would negate their character as public funds.

(2) The expenditures which are to be considered in computing the State share for construction under title II of the Act are all those made by the applicant for that purpose, regardless of the source of funds.

(20 U.S.C. 351e(b), 355e-1(b))

§ 130.32 Eligible costs.

(a) Titles I and III. Funds under title I and title III of the Act may, at the discretion of the State agency, be applied to expenditures determined in accordance with the principles contained in Subpart G of part 100b of this chapter, which are attributable to the activities specified in § 130.4 and § 130.7, in the case of funds under title I of the Act, and in § 130.6, in the case of funds under Title III of the Act. These expenditures may include expenditures for the acquisition, maintenance (including insurance), and repair of equipment and of library materials (as defined in § 130.3), including necessary binding or rebinding.

(b) Title II; Construction projects. The following costs attributable to a public library construction project approved under § 130.5 are eligible at the discretion of the State agency if incurred after the date of project approval or after such other date as is indicated in paragraph (b) (3) and (5) of this section:

(1) Erection of new buildings to be used for public library facilities;

(2) Expansion, remodeling, and alteration (as distinguished from maintenance and repair) of existing buildings to be used for public library purposes;

(3) Expenses (other than interest and the carrying charges on bonds) related to the acquisition of land on which there is to be construction of new buildings or expansion of existing buildings which are incurred within three fiscal years preceding the fiscal year in which the project was approved by the State agency, if the expenses constitute an actual cost or transfer of public funds in accordance with the usual procedures generally applicable to all State and local agencies and institutions (See 45 CFR 100b. 274);

(4) Site grading and improvement of land on which such facilities are located;

(5) Architectural, engineering, and inspection expenses incurred subsequent to site selection;

(6) Expenses (other than interest and the carrying charges on bonds) related to the acquisition of an existing building to be used for public library

facilities, if such expenses constitute an actual cost or transfer of public funds in accordance with the usual procedures generally applicable to all State and local agencies and institutions; and

(7) Expenses related to the acquisition and installation of initial equipment to be located in a public library facility provided by a construction project, including all necessary building fixtures and utilities, office furniture, and public library equipment, card catalog cabinets, circulation desks, reading tables and study carrels, booklifts, elevators, and information retrieval devices (but not books or other library materials).

(20 U.S.C. 352, 355b, 355e-1)

Subpart D-Payments and Reports

§ 130.40 Conditions for payments to States.

Payments to States under the Act will be made only after the Commissioner determines that:

(a) The State has on file (1) a basic State plan approved by the Commissioner under § 130.16, (2) a long-range program submitted and updated under § 130.19, and (3) an annual program submitted under § 130.20 for the fiscal year of the allotment from which payment is to be made.

(b) The State has given assurance to the Commissioner's satisfaction that it will have available for expenditure under Title I of the Act during the fiscal year of the allotment: (1) From State and local sources,

(i) Sums sufficient to earn its minimum allotment as set forth in section 5(a) of the Act.

(ii) Not less than the total amount actually expended, in areas covered by the programs for such years, for the purposes of such programs from such sources in the second preceding fiscal year of the allotment from which payless than the total amount actually expended for such purposes for those sources in the second preceding fiscal year;

(c) In the case of payments under title I of the Act, the State will expend during the year of the allotment from Federal, State, and local sources, an

amount not less than the amount expended by the State from such sources for State institutional library services and library services to the physically handicapped during the fiscal year ending June 30, 1971; and

(d) The State has established a State advisory council on libraries under § 130.8.

(20 U.S.C. 351d(a), 351e(a), 354(2))

§ 130.41 Withholding of payments.

(a) Whenever the Commissioner, after reasonable notice and opportunity for hearing to the State agency, determines on the basis of information available to him that (1) the State plan (as described in § 130.15(b) has been so changed that it no longer complies with any State plan requirements in the Act and the regulations in this part, or (2) in the administration of the State plan or of any program under this part, there is a failure to comply substantially with any such requirement or with any assurance or other provision contained in such plan, the Commissioner will notify such State agency that no further payments will be made to the State until he is satisfied that the State has complied with such requirements, assurances, or other provisions.

(b) At his discretion, the Commissioner may notify the State agency that payment of Federal funds will be limited to support of programs under the State plan or portions of the State plan not affected by the State's failure to comply with such requirements.

(20 U.S.C. 351d(e))

§ 130.42 Reallotment.

(a) The amount of any State's allotment for any fiscal year under section 5(a) of the Act (20 U.S.C. 351c(a)) which the Commissioner determines will not be required in the period during which such allotment is available for carrying out that State's plan may be reallotted by the Commissioner on such dates during such period as he may fix, to other States for carrying out their plans in the same proportion as the original allotments were made for such purposes to such other States in the manner provided for in section 5(b) of the Act.

(b) Any amounts reallotted shall be determined by the Commissioner on the basis of (1) reports filed by the States of the amounts required to carry out the State plan and (2) such other information as he may have available.

(c) Any amounts reallotted shall be deemed part of the State's allotment for that fiscal year.

(20 U.S.C. 351c(b))

§ 130.43 Reports.

(a) Annual report of program activities. The State agency shall submit at such times, in such form, and in accordance with procedures established by the Commissioner an annual report concerning the conduct of activities described in the annual program under § 130.20 and the extent to which these activities carried out the objectives set forth in the long-range program under § 130.19 for the proceeding fiscal year. The annual report shall also set forth the total receipts and expenditures of Federal funds for that year.

(b) Other reports. The State agency shall submit to the U.S. Office of Education, one copy of all surveys, films, and of all publications considered to be of interest to agencies and organizations planning public library programs in other States, which are developed with Federal funds granted under the Act.

(20 U.S.C. 351d(b))

APPENDIX A

DEPARTMENT OF HEALTH, EDUCATION, AND WELFARE, OFFICE OF EDUCATION BASIC STATE

PLAN

(State-Federal Agreement)

LIBRARY SERVICES AND CONSTRUCTION ACT, AS AMENDED BY PUBLIC LAW 91-600

The -(Officially Designated State Library Administrative Agency) of the State of hereinafter called the State Agency, hereby agrees and assures that this Basic State Plan which serves as an agreement between State and Federal Governments under the Library Services and Construction Act, as amended, for which Federal funds are being requested for the fiscal year ending June 30, 19——, will be administered in accordance with the following provisions:

1. The State Agency. a. Assures that it will administer, or supervise the administration of, the programs authorized by the Act; and has adequate fiscal and legal authority to do so. (See appended Certificate of Legal Authority.)

b. Assures that it has provided for such fiscal control and funds accounting procedures as will assure proper disbursement of and accounting for, Federal funds paid to the State under the Act (including any funds paid by the State to any other public or private nonprofit agency under this Basic State Plan).

c. Assures that it will submit to the Office of Education, and otherwise make public (1) the State's long-range program on or before July 1, 1972, and (2) the State's annual program on or before July 1 of each fiscal year. Both programs will be developed in consultation with the Office of Education and with the advice of the State Advisory Council on Libraries.

d. Assures that any funds paid to the State in accordance with a long-range program and an annual program shall be expended solely for the purposes for which funds have been authorized and appropriated.

e. Assures that it will make such reports, including reports of evaluations, in such form and containing such information as the Commissioner may reasonably require to carry out his functions under the Act, and to determine the extent to which funds provided under the Act have been effective in carrying out its purposes.

f. Assures that it will keep such records and affords such access thereto as the Commissioner may find necessary to assure the correctness and verification of all reports submitted to him.

g. Assures that it will establish and specify in the State's long-range program its policies, priorities, criteria and procedures necessary to the implementation of all programs in which the State will participate under the provisions of the Act, which are incorporated by reference herein.

h. Assures that it will set forth in the State's long-range program its policies and procedures for the coordination of programs and projects supported under this Act with library programs and projects operated by institutions of higher education or local elementary or secondary schools, with other public or private library services programs, and with other related service programs.

i. Assures that it has established a State Advisory Council on Libraries as required by the provisions of the Act and § 130.8 of the regulations. (See attached certification.)

j. Assures that it has available for expenditures under Title I of the Act in this fiscal year (fiscal year 19- ):

A. From State and local sources:

1. Sums sufficient to earn its basic minimum allotment.

2. Not less than the total amount actually expended, in areas covered by the programs for such year, for the purposes of such programs from such sources in the second preceding fiscal year (fiscal year 19— ). B. From State sources:

1. Not less than the total State amount actually expended for such purposes from such sources in the second preceding fiscal year (fiscal year 19——).

k. Assures that it will expend in this fiscal year (fiscal year 19-) from Federal, State, and local sources, an amount not less than the amount expended by the State from such sources for State institutional library services, and library services to the physically handicapped during the fiscal year ending June 30, 1971.

2. The State Agency herewith sets forth (a) criteria to be used in determining the adequacy of public library services to geographical areas, and for groups of persons in the States, including criteria designed to assure that priority will be given to programs or projects which serve urban and rural areas with high concentration of lowincome families; and concentration of persons of limited English-speaking ability. (See attached statement of Criteria.)

3. This Basic State Plan has been submitted to the Governor for his review; and his comments, or a statement that no comments have been made, as well as projections required under the program, will also be submitted for the Governor's review, and comments, if any, will accompany the amendments or other required program material when they are submitted to the U.S. Office of Education.

4. The State Agency will make public the Basic State Plan as approved by the Commissioner.

5. The State Agency assures that it will otherwise comply with the requirements of the Act and the Regulations of the Commissioner of Education issued thereunder (45 CFR Part 130; 45 CFR Part 100b).

6. Assurance is hereby given that in accordance with title VI of the Civil Rights Act of 1964 (42 U.S.C. 2000d et seq.) and the regulations issued thereunder by the Department of Health, Education, and Welfare (45 CFR Part 80), no individual shall, on the ground of race, color, or national origin, be excluded from participation in, be denied the benefits of, or be otherwise subjected to discrimination under this Plan. The State Agency has established and will maintain methods of administration to assure that each program or activity for which it receives Federal financial assistance will be operated in accordance with the preceding paragraph of this statement. The State Agency will amend its methods of administration from time to time as necessary to