of the Act or the regulations in this part; or

(b) that in the administration of the plan there is a failure to comply substantially with any such provisions, the Commissioner will notify the applicant that the applicant will not be regarded as eligible to participate in the program under Title III-A of the Act until the Commissioner is satisfied that there is no longer any such failure to comply.

(20 U.S.C. 584(c))

§ 141.11 State plan assurances.

Each State plan shall contain the following assurances:

(a) Authority. That the State agency will administer the plan and has adequate authority to do so under State law.

(b) Fiscal procedures. That the State agency has provided for such fiscal control and fund accounting procedures as will assure proper disbursement of and accounting for Federal funds paid to the State under the plan, including the funds paid by the State to local educational agencies. Subject to the applicable provisions of Part 100b of this chapter, such administration shall be conducted in accordance with applicable State laws, policies, and procedures.

(c) Reports. That the State agency will participate in periodic consultations and will make reports to the Commissioner, at such time, in such form, and containing such information, as the Commissioner may consider reasonably necessary to enable him to perform his duties under the Act and will keep such records and afford such access thereto, and will comply with such other requirements as the Commissioner may find necessary to assure the correctness and verification of such reports.

(d) Description of program. That the State agency has developed a program under which funds paid to the State from its allotment under section 302(a) of Title III-A of the Act will be expended solely for (1) projects approved by the State agency for the acquisition of (i) laboratory and other special equipment (other than supplies consumed in use), including audiovisu

al materials and equipment, (ii) printed and published materials (other than textbooks), suitable for use in providing education in academic subjects in public elementary and secondary schools, and (iii) test-grading equipment for those schools and specialized equipment for audiovisual libraries serving those schools; and (2) projects approved by the State agency for minor remodeling of laboratory or other space used for those materials or equipment. In addition, that the State agency has developed a program under which funds paid to the State from its allotment under section 302(b) will be expended solely for projects for (i) expansion or improvement of supervisory and related services in public elementary and secondary schools, including leadership and services to local educational agencies to improve instruction in academic subjects, and (ii) for the administration of the State plan. The programs developed pursuant to sections 302(a) and 302(b) must either be set forth in the State plan itself or be incorporated therein by reference as separate existing and identified documents available for inspection by the Commissioner.

(e) Principles for determining priority of projects. That the State agency has established the principles that will be applied in determining the priority of and order of undertaking of projects for assistance under the provisions of Title III-A of the Act. Such principles must either be set forth in the State plan itself or be incorporated therein by reference as a separate existing and identified document available for inspection by the Commission

er.

(f) Opportunity for hearing. That the State agency has provided for an opportunity for a hearing before the State agency to any applicant for a project under Title III-A of the Act.

(g) Standards. That the State agency has established standards for laboratory and other special equipment to be acquired with assistance furnished under Title III-A of the Act and will advise the Commissioner of those standards. These standards are to be related to the State's program for improving instruction in academic subjects and shall be applied by the

State in approving projects for the acquisition of equipment.

(h) Financial participation. Whether the State agency has established requirements to be imposed upon applicants for financial participation in projects assisted under Title III-A of the Act, including any provision for taking into account the resources available to any applicant for such participation relative to the resources for participation available to all other applicants. These requirements must either be set forth in the State plan itself or be incorporated therein by reference as a separate existing and identified document available for inspection by the Commissioner.

(20 U.S.C. 443, 584)

Subpart C-State Administration

§ 141.19 Establishment of principles to govern priorities.

In meeting the requirements contained in § 141.11(e), a State must provide a list of principles which reflect its major educational concerns in the academic subject fields and which have a bearing on the functioning of the Title III-A program. These principles are then to be used as a basis for the development of priorities. The priorities themselves, while not a required part of the State plan, must be prepared by the State to be used for the purpose of assigning relative importance and order of approval of projects submitted by local educational agencies under this part.

(20 U.S.C. 443(a)(2))

§ 141.20 Administrative review and evaluation.

The State agency and the Department of the Interior and the Department of Defense shall provide for the administration and supervision of all plan programs. Program and administrative review and evaluation shall be conducted by the State agency or the Department of the Interior or the Department of Defense, as the case may be, at least annually to appraise the status of the programs and their administration in terms of plan provisions and program objectives. The

State agency shall include a report of such administrative review and evaluation in its annual report.

(20 U.S.C. 443, 584(a)(1), 588(B))

§ 141.21 Advisory committees.

If State advisory committees are used in one or more aspects of the State plan, the State agency shall establish policies for the establishment of the committees, for the qualification and selection of members, for the establishment of the duties of members and of the committee, and for the payment of committee expenses, if any.

(20 U.S.C. 443, 584)

§ 141.22 Continuing review by Commissioner of State administration.

In order to assist the State agency in adhering to statutory requirements and to the provisions of its approved State plan, the Commissioner will be responsible for conducting periodic reviews, including onsite reviews of the administration of programs under Title III-A of the Act. These reviews will involve analysis of activities and procedures used by State agencies to conduct the program, including the development and monitoring of management activities.

(20 U.S.C. 584)

Subpart D-Federal Financial Participation

§ 141.30 Equipment and minor remodeling.

The Federal Government will pay from each State's allotment an amount equal to one-half of the sums expended for the purchase of equipment and for minor remodeling, when expended for an approved project under an approved State plan. There can be no Federal financial participation in the expenditures for a project if the project, including any amendments thereto, had not been approved by the State agency prior to the incurrence of the expenditures.

(20 U.S.C. 444(a))

(a) If the Commissioner determines that any part of the amount allotted to any State for any fiscal year under section 302(a) of the Act will not be required for that year, that part will be available on such dates during that year as the Commissioner may fix for reallotment to other States. The reallotment will be made in proportion to the amounts originally allotted to other States for that year, except that the total amount available to each State will be reduced to the extent it exceeds the sum the Commissioner determines that the State needs and will be able to use for that year, and the total of such reductions shall be similarly reallotted among the States whose allotments were not so reduced.

(b) The amounts to be so reallotted will 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 approved by the Commissioner, and (2) such other information as he may have available. Each State agency shall, if requested, submit to the Commissioner, on such date or dates as he may specify, a report or reports showing the anticipated need during the current fiscal year for the amount previously allotted or any amount needed in addition

thereto, and such other information as the Commissioner may request.

(c) If the Commissioner determines that any amount reserved for any fiscal year for making loans under section 305 of the Act will not be required for that year, that part shall be available for allotment to the States in the manner provided for reallotment of Title III-A funds under paragraph (a) of this section.

(20 U.S.C. 442(c))

§ 141.34 Allotment to the Department of the Interior and the Department of Defense.

The Commissioner will make allotments, according to their respective needs for the types of programs authorized under Title III-A of the Act, to the Secretary of the Interior for elementary and secondary schools operated for Indian children by the Department of the Interior, and to the Secretary of Defense for elementary and secondary schools operated for overseas dependents by the Department of Defense.

(20 U.S.C. 588(B))

Subpart E-Acquisition of Equipment and Minor Remodeling

§ 141.46 Equipment and minor remodeling eligible for Federal financial participation.

A State educational agency may approve projects for the acquisition, with Federal financial participation, of items or equipment, or for minor remodeling, for education in academic subjects only to the extent that equipment or minor remodeling for such academic subjects are covered by the State plan current at the time of project approval.

(20 U.S.C. 443)

§ 141.47 Equipment and minor remodeling costs eligible for Federal financial participation.

(a) Equipment. (1) Acquisition of equipment includes the costs of delivery to the school and installation. (2) Expenditures in which Federal participation is claimed may include the cost of raw or processed materials or com

ponent parts to be made into finished products or complete equipment units for instruction in academic subjects, including the cost of making and assembling the equipment.

(b) Minor remodeling. A minor remodeling project may include the costs of materials and the labor of local school or district personnel, provided that the costs are properly substantiated by documentation.

(20 U.S.C. 443)

§ 141.48 Use of equipment in other subject

areas.

Equipment acquired under an approved project for academic subjects may be used when available and suitable in providing education in other subjects, if there exists a critical need therefor in the judgment of local school authorities. Equipment shall be deemed available only when it is not needed for the time being for use in academic subjects.

(20 U.S.C. 443)

Subpart F-Supervision and Administration

§ 141.54 Programs for supervision and related services.

The State agency shall establish policies or procedures for programs for the expansion or improvements of the State agency's supervisory and related services to public elementary and secondary schools in academic subjects. The policies and procedures shall set forth (a) how and to what extent the programs provide a new service or are improvements or expansions of existing services in the nature of supervision or instruction or services which effectively contribute to the supervisory services to be rendered; and (b) the scope of the agency's activities and arrangements to be undertaken in carrying out such programs. (20 U.S.C. 443)

§ 141.55 Expansion or improvement.

An expansion or improvement of an existing program of supervisory or related services is a program which involves additional expenditures by the

§ 142.3 Definitions.

As used in this part:

"Academic subjects" means the following elementary and secondary school subjects: the arts, civics, economics, english, geography, history, the humanities, industrial arts, mathematics, modern foreign languages, reading, and science.

"Act" means section 305 of the National Defense Education Act of 1958, 20 U.S.C. 445.

"Arts" includes, but is not limited to, music (instrumental and vocal), dance, drama, folk art, creative writing, architecture and allied fields, painting, sculpture, photography, graphic and craft arts, industrial design, costume and fashion design, film, television, radio, tape and sound recording, and the arts related to the presentation, performance, execution and exhibition of such major art forms.

"Audiovisual library" means a facility for the collection, custody, cataloging, maintenance, and distribution of audiovisual materials for education in academic subjects in elementary or secondary schools, and controlled and operated by a school or a group of schools under a school system.

"Equipment" means laboratory and other special equipment as defined in this section, including materials as defined in § 100.1 of this chapter.

"Humanities" includes, but is not limited to the study of the following: language, both modern and classic; linguistics; literature; history; jurisprudence; philosphy; archeology; the history, criticism, theory, and practice of the arts; and those aspects of the social sciences which have humanistic content and employ humanistic methods.

"Laboratory and other special equipment" (a) The term includes: (1) Fixed · or movable articles which are particularly appropriate for use in providing education in academic subjects in an elementary or secondary school and which are to be used either by teachers in connection with teaching or by students in learning in such subjects; (2) audiovisual equipment (including projectors, recorders, television cameras, television receivers, closed-circuit television distribution systems, and ancillary television projection and reception equipment to be used primarily for nonbroadcast purposes, except where broadcast takes the place of closed-circuit cable systems), to be used, either by teachers in connection with teaching or by students in connection with learning primarily in providing education in academic subjects in a private elementary or secondary school; (3) materials (as defined in § 100.1 of this chapter) and devices (other than those used for printing, such as printing presses and offset printing machines) to be used for preparation of audiovisual and instructional materials for academic subjects; (4) storage equipment to be used solely for the care and protection of the items specified in paragraph (a)(1)–(3) of this definition, when used in laboratories or classrooms; (5) testgrading equipment to be used primarily in providing education in academic subjects