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CHAPTER VII—OFFICE OF STATE TECHNICAL

SERVICES, DEPARTMENT OF COMMERCE

PART 700GENERAL REGULATIONS

GOVERNING OPERATION AND AD-
MINISTRATION OF STATE TECHNI-

CAL SERVICES ACT OF 1965 Sec. 700.1 Scope of part. 700.2 Definitions. 700.3 Approval by Director. 700.4 Planning grant. 700.5 Five-year plan. 700.6 Annual technical services program. 700.7 Advisory council. 700.8 Criteria for approval of State plans

and programs. 700.9 Criteria for approval of special merit

programs. 700.10 “Qualified institution." 700.11 Recordkeeping and fiscal controls. 700.12 Correspondence, communications, re

quests for information, and inspec

tion of records. 700.13 Termination. 700.14 Application of Title VI of Civil Rights

Act of 1964. 700.15 Existing or planned technical serv

ices program. 700.16 Duplication. 700.17 Repayment. 700.18 Formula for maximum amounts

States are eligible to receive. 700.19 Funding programs under the Act. 700.20 Reports. 700.21 Federal coordination and advisory

committees. Appendix A-Designation by the Commis

sioner of Education. Appendix B-Assurances of Compliance

with the Department of Commerce Regulations Under Title VI of the Civil Rights Act of 1964.

AUTHORITY: The provisions of this part 700 issued under 79 Stat. 679 (Public Law 89–182, approved Sept. 14, 1965, State Technical Services Act of 1966).

SOURCE: The provisions of this Part 700 appear at 31 F.R. 5951, Apr. 19, 1966, unless otherwise noted.

$ 700.1 Scope of part.

(a) The Act. The State Technical Services Act of 1965 (hereafter referred to as the “Act”) became law on September 14, 1965.

(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). $ 700.2 Definitions.

(a) "Secretary" means the Secretary of Commerce or the Assistant Secretary of Commerce for Science and Technology.

(b) "Director" means the Director of the Office of State Technical Services.

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(c) "State" means one of the States the 5-year plan and the initial annual of the United States, the District of Co technical services programs. lumbia, the Commonwealth of Puerto (j) "State program" means the anRico or the Virgin Islands.

nual technical services program submit(d) "Technical services" means activ ted by the designated agency on behalf ities or programs designed to enable of a State or on behalf of two or more businesses, commerce and industrial States jointly, but does not refer to a establishments to acquire and use scien program element. tific and engineering information more

(k) “Program element” means an ineffectively through such means as

dividual activity included as part of the (1) Preparing and disseminating tech

annual technical services program. nical reports, abstracts, computer tapes,

(1) "Special merit program” means & microfilm, reviews, and similar scientific program determined by the Secretary to or engineering information, including

be entitled to Federal financial assistthe establishment of State or interstate ance under section 10(c) of the Act to technical information centers for this accomplish the purposes of the Act. purpose;

(m) "Designee" means the person (2) Providing a reference service to

designated by the Governor of a State identify sources of engineering and other

to furnish the certifications required unscientific expertise; and

der section 5 of the Act. The designee (3) Sponsoring industrial workshops,

may not be an officer or employee of the seminars, training programs, extension

designated agency or of a participating courses, demonstrations, and field visits

institution nor a member of the advisory designed to encourage the more effective

council. application of scientific and engineering

(n) "Qualified institution" means an information.

agency, institution or organization meet(e) "Designated agency" means the

ing criteria in $ 700.10. institution or agency which has been

(0) "Recipient” means the designated designated as administrator of the pro

agency, participating institution, qualigram for any State or States under

fied institution receiving assistance under section 3 or sect 7 of the Act.

the Act, or person authorized to receive (f) “Participating institution" means

payments in support of each approved each qualified institution in a State

program. which participates in the administra $ 700.3 Approval by Director. tion or execution of the State technical

The Director shall review the 5-year services program as provided by the Act.

plan and each annual program submitted (g) "Matching funds" means funds

by a designated agency under sections 4 that are provided to a qualified institu

or 7 of the Act and shall approve only tion by the State or by other non those which Federal sources and may include fees,

(a) Bear the certification required by contributions, donations, gifts of money,

the Governor or his designee under secthe fair market value of services of per

tion 5 of the Act; sonnel, the fair market value for the use

(b) Comply with the regulations in for real or personal property, special user charges and tuition fees, received

this part; and from persons and private profit or non

(c) Otherwise accomplish the purprofit firms or institutions. Matching

poses of the Act. funds may include non-Federal funds $ 700.4 Planning grant. expended on existing technical services

(a) Purpose and use. The purpose of programs of the State constituting a

the planning grant is to assist each despart of the State's annual program as

ignated agency, other than a designated approved under the Act and these regu

agency under section 7 of the Act, to lations. See $ 700.15.

prepare the 5-year plan and the State's (h) “Advisory council" means the

initial annual technical services procouncil appointed by the designated

grams. The funds provided by the planagency under section 9 of the Act and

ning grant shall be used for any legiti§ 700.7.

mate purpose directly related to the (1) “Planning grant” means a grant preparation of such plans and programs. awarded to a designated agency, other The Director shall be notified of the than that designated under section 7 of nature and amount of any contract the Act, to assist in the preparation of which the designated agency makes for

the purpose of planning, using all or part (2) A clear and succinct statement of the planning grant. A designated justifying the need for the planning agency established under section 7 of the grant and the specific purposes for Act, acting in behalf of interstate partic which it is to be used; ipants, while ineligible to receive a direct (3) The total amount requested for planning grant, may receive all or part these purposes; of a State's planning grant under an (4) A budget showing a breakdown of agreement between two or more States the estimated amounts which will be exfor the purpose of joint planning. pended during the fiscal year for these There is no requirement that a State purposes with the funds furnished by the match or otherwise furnish any portion planning grant; and of planning grant funds paid to its des (5) The name of the officer of the designated agency under section 10(e) (1) ignated agency who is authorized to act of the Act.

for the designated agency. (b) Amount and term. No designated (31 F.R. 5951, Apr. 19, 1966, as amended at agency may receive a planning grant in 31 F.R. 16265, Dec. 20, 1966) excess of $25,000 a year. In the discre

$ 700.5 Five-year plan. tion of the Director, a planning grant may be paid for each of the first 3 fiscal (a) To receive Federal financial assistyears commencing with fiscal year 1966.

ance for an annual technical services However, after the 5-year plan and the

program, a designated agency shall preinitial annual technical services pro

pare and submit a 5-year plan which grams are submitted to the Director and (1) Outlines the technological and approved, no other planning grant will economic conditions of the State, taking be paid unless the Director determines into account its region, business, comthat there is a specific need demon merce, and its industrial potential and strated

identifies the major regional and indus(1) For planning in a new direction

trial problems; which is not included in the approved (2) Identifies the general approaches 5-year plan and which is to be included and methods to be used in the solution of in a future revision of the plan; or

these problems and outlines the means (2) For additional planning in the de for measuring the impact of such assistvelopment and preparation of the 5-year

ance on the State or regional economy; plan or revisions thereto reflecting new and or more detailed insight into the State's (3) Explains the methods to be used economic conditions and technical re in administering and coordinating the sources leading to additional opportuni technical services program. ties for the transfer of technology (b) A designated agency may revise through the provisions of technical sery the 5-year plan it previously submitted ices not covered in the previously ap on an annual basis during the period of proved 5-year plan; or

the plan. (3) For additional planning in the (c) No 5-year plan of a State shall be development and preparation of the accepted for review and approval by the annual technical services programs. Director unless the Governor of the State

(c) Procedure to obtain planning or his designee certifies that the plan is grant. A designated agency may obtain consistent with the State's policies and à planning grant by a written request objectives. to the Director only after the Governor of the State concerned has notified the

$ 700.6 Annual technical services pro

gram. Secretary or the Director that such State intends to participate under the Act and

(a) In addition to the 5-year plan dehas designated under section 3 of the

scribed in § 700.5, each designated agency Act the institution or agency making

seeking Federal financial assistance on

behalf of a State or St tes under the Act such request. The request should con

shall prepare and submit to the Director tain the following information:

an annual technical services program (1) A statement of the appropriate

which, State laws and regulations under which

(1) Identifies specific methods, which the Governor has designated such insti

may include contracts, for accomplishing tution or agency to be the designated particular goals and outlines the likely agency and under which authority the impact of these methods in terms of the State program will be carried out; 5-year plan. If it is planned to enter

or

into a contractual arrangement, the type Each designated agency will furnish for of contract and identity of the contractor certification in this regard a copy of the shall be furnished as well as information ethical standards and rules which are concerning its cost, term and the basis established to avoid any conflict of infor selection of the contractor;

terest in connection with the administra(2) Contains a detailed budget, to tion of any plan or program receiving gether with procedures for adequate Federal financial assistance under the fiscal control, fund accounting and audit Act. Such rules shall clearly set forth ing, to assure proper disbursement for the standards and procedures which offifunds paid to the State under the Act; cers, employees and consultants can foland

low to avoid any conflict of interest: (3) Indicates the specific responsibili (4) Determined that matching funds ties assigned to each participating insti will be available from State or other nontution in the State, including a statement Federal sources. In addition, each desof the method by which the participating ignated agency shall furnish a statement institutions were selected for their re to the Director showing the basis for spective responsibilities.

the determination by identifying such (b) The designated agency shall pro

sources. The sources of matching funds vide information that it

shall be those defined in $ 700.2(g) and (1) Has invited all qualified institu

shall meet the re uirements of $ 700.8(i); tions in the State to submit proposals for

(5) Determined that such technical providing technical services under the services program does not provide a seryAct. The invitations shall be publicly

ice which on the date of such certificaannounced and issued in writing to insti tion is economically and readily availtutions in the State that have been qual able in such State from private technical ified under $ 700.10.

services, professional consultants, (2) It has coordinated its programs

private institutions. Each designated with other States (when regional coop

agency shall furnish a statement to the eration is planned) and with other pub

Director showing the basis for such delicly supported activities within the State

termination; and the extent and manner in which such

(6) Planned no services specially recoordination has been carried out by

lated to a particular firm or company, identifying such programs and activities public work or other capital project exand indicating how any duplication of

cept insofar as the services are of genother technical services programs in the

eral concern to the industry and comState has been avoided.

merce of the community, State or region. (c) No annual technical services pro

If the designated agency has planned gram shall be accepted for review and

services which are specially related to a approval of the Director unless the Gov

particular firm or company, public work ernor of the State or his designee certi

or other capital project, a statement fies that the designated agency has

shall be furnished by the designated (1) Invited all qualified institutions in

agency to the Director describing such the State to submit proposals for provid

services and the basis for the determi

nation that such services are of general ing technical services under the Act;

concern to the industry and commerce of (2) Coordinated its programs with

the community, State or region; and other States (when regional cooperation

(7) Provided for making public all reis planned) and with other publicly sup

ports prepared in the course of furnishported activities within the State, as

ing technical services supported under appropriate;

the Act or for making them available at (3) Established adequate ethical cost to any person on request. Each standards and rules to insure that no designated agency shall furnish the Diofficer or employee of the State, the des rector a copy of the fee schedules for ignated agency or any participating in

such reports or a statement showing the stitution shall receive compensation for

steps that have been taken to make such technical services he performs, for which

reports public. funds are provided under the Act, from $ 700.7 Advisory council. sources other than his employer, and (a) Appointment. Each designated that no such officer or employee shall

agency shall appoint a public advisory otherwise maintain any private interest council (representing broad community in conflict with his public responsibility. interests) pursuant to the requirements

of section 9 of the Act and shall furnish formation as to the type of contract (i.e., to the Director the following informa fixed price, cost-plus-a-fixed-fee, etc.) tion:

term, cost and the basis for the selection (1) Names of the members of the of the contractors and subcontractors; council, their occupationz, and orga (1) Provides for adequate experience nizational affiliations (members shall and competence in the management of not directly participate in the planning, State or interstate programs; administration, or substantive conduct (g) Contains efficient and effective of the State technical services program); plans and procedures to utilize existing

(2) The qualifications of each of the State and Federal sources for collecting members appointed to the council; and and disseminating technical informa(3) A statement as to how such ap

tion; pointments give a balanced representa (h) Considers whether interstate plans tion from relevant segments of society and procedures are desirable for a more within the State or region, which may effective operation of its technical servinclude such segments as business, labor,

ices program and, if so, provides plans education, local government, consumers,

looking toward an interstate agreement scientists, engineers, or other profes under section 7 of the Act; and sional groups.

(i) Provides necessary matching funds The above information will be forwarded as defined in $ 700.2(g) and for the reimmediately as to each new member ceipt and expenditure of any special appointed.

user charges or fees under the follow(b) Review of annual program. The ing guidelines: advisory council shall review each annual (1) The receipt and expenditure of technical services program, evaluate its any special user charges or fees shall be relation to the purposes of the Act, and reviewed specifically by the advisory report its findings, which may include council; appropriate recommendations, to the (2) The State, the designated agency designated agency.

or the participating institutions shall be (c) Reports. A copy of each report responsible for making available the submitted by each advisory council to necessary matching funds; the designated agency shall be sent to (3) User fees in excess of those rethe Governor or his designee. The quired to match Federal funds must be Governor or his designee shall then expended to carry out the objectives of submit a copy of this report with such an approved technical services program comment as is deemed appropriate to and the Director shall be informed the Director with the submittal of the prior to such expenditure. annual technical services program.

(4) Excess user fees also may be used $ 700.8 Criteria for approval of State

as part of matching funds for technical plans and programs.

services programs in fiscal years subseNo annual technical services program

quent to those in which the excess fees submitted by a designated agency of a

were generated; and State or by an interstate agency shall be

(5) The Director may review any fees approved by the Director unless such

or user charges as to their reasonableness. program is accompanied by the informa $ 700.9 Criteria for approval of special tion called for by $ 700.6(b) and other in

merit programs. formation sufficient, in the judgment of the Director, to insure that the annual

No payment shall be made to any des

ignated agency, participating institution program(a) Provides coherence in the plan

or qualified institution, in support of a ning and program activities;

program under section 10(c) of the act,

unless the Director approves the program (b) Contains a method for evaluating the results of the annual program;

and determines that the program is of (c) Provides professional competence

national, regional or special significance of a full-time staff of the participating

and is not included in any State or interinstitutions;

state program, taking into account the (d) Does not duplicate any other pub

following guidelines and information licly-financed technical services activity

which shall be furnished with the or program readily available to the State; request: (e) Identifies all proposed contrac

(a) A description of the proposed protors and subcontractors including in gram, a detailed budget, the particular

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