project period and all extensions thereof, nt whichever occurs first.

§ 118.41 Grants for construction.

(a) General provisions. Where essential for the success of a project under Title III of the Act, funds made available thereunder may be used by local educational agencies for the acquisition, lease, remodeling, or construction of facilities if the estimated cost of such facilities is commensurate with the range and scope of the services to be provided under the proposed project.

(b) Assurances. Grants which make provision for construction shall contain assurances that:

(1) Reasonable provision has been made, consistent with other approved use to be made of the facilities, for areas in such facilities which are adaptable for artistic and cultural activities;

(2) Upon completion of the construction, title to the facilities will be in and retained by a State or local educational agency, and the building will be operated and used for the educational and related purposes for which it was constructed for a period of not less than 20 years;

(3) Construction approved pursuant to the project proposal will be undertaken promptly;

(4) Contracts for the construction approved pursuant to the project proposal will provide that all laborers and mechanics employed by contractors or subcontractors shall be paid wages at rates not less than those prevailing on similar construction in the locality as determined by the Secretary of Labor in accordance with the Davis-Bacon Act, as amended (40 U.S.C. 276a-276a-5), that such contractors and subcontractors will comply with the regulations in 29 CFR Part 3 (see 29 F.R. 97), and include all clauses required by 29 CFR 5.5 (a) and (c) (see 29 F.R. 100, 101, 13463, and 29 CFR Part 3, Subpart B-Interpretation of the Fringe Benefits Provisions of the Davis-Bacon Act-published at 29 F.R. 13465), and that the nondiscrimination in employment clause prescribed by Executive Order No. 11246 of September 24, 1965 (30 F.R. 12319), will be incorporated in any contract for construction work or modification thereof as defined in said Executive order;

(5) Representatives of the U.S. Office of Education will have access at all reasonable times to work wherever it is in

preparation or progress, and the contractor will provide proper facilities for such access and inspection;

(6) The final working drawings and specifications will be submitted to the Commissioner before the construction approved pursuant to the project is placed on the market for bidding;

(7) Construction work will be contracted for, and performed, according to State and local rules and regulations; (8) The grantee will furnish progress reports and such other information relating to the proposed construction and the grant as the Commissioner may require;

(9) Architectural or engineering supervision and inspection will be provided at the construction site to insure that the completed work conforms to the approved plans and specifications;

(10) In developing the plans for the construction the grantee has given due consideration to excellence of the architecture and design and to the inclusion of works of art, for which funds under Title III of the Act will be available not in excess of 1 percent of the cost of the project;

(11) In planning the construction of school facilities each grantee shall, in accordance with the provisions of Executive Order No. 11296 of August 10, 1966 (31 F.R. 10663) and such rules and regulations as may be issued by the Department of Health, Education, and Welfare to carry out those provisions, evaluate flood hazards in connection with such school facilities and, as far as practicable, avoid the uneconomic, hazardous, or unnecessary use of flood plains in connection with such construction;

(12) In developing plans for school facilities, provision shall be made in order to insure that such facilities shall be, to the extent appropriate in view of the uses to be made of the facilities, accessible to and usable by handicapped persons and in developing such plans there will be compliance with the minimum standards contained in "American Standard Specifications for Making Buildings and Facilities Accessible To and Useable By, the Physically Handicapped" approved by the American Standards Association, Inc., October 31, 1961, with appropriate useable segments of "Building Standards of the University of Illinois Rehabilitation Center" and "Occupancy Guide Requirement of Vet

erans Benefits, Regional Offices, Veterans Administration", and with such other standards as the Secretary may prescribe or approve; and

(13) The applicant has or will have a fee simple or such other estate or interest in the site, including access thereto, as is sufficient in the opinion of the Commissioner to assure undisturbed use and possession of the facilities for not less than 20 years from the date of the completion of the construction approved pursuant to the project.

(c) Manner of construction. Construction must be functional, must be undertaken in an economical manner, and must not be elaborate in design or extravagant in the use of materials in comparison with school facilities of a similar type constructed in the State within recent years.

(d) Contracts for construction. All contracts for construction (as defined in § 118.1) shall be awarded to the lowest qualified bidder on the basis of open competitive bidding; except that, if one or more items of construction are covered by an established alternative procedure, consistent with State and local laws and regulations, which is approved by the State agency as designed to assure construction in an economical manner consistent with sound business practice, such alternative procedure may be followed.

§ 118.42 Accounting procedures for construction projects.

Funds made available for construction pursuant to a grant under Title III of the Act must be expended within 12 months from the effective date of the project, except that a longer period may be allowed by the Commissioner upon a showing of good cause.

§ 118.43 Recovery of payments.

If within 20 years after the completion of any construction undertaken pursuant to a grant under Title III of the Act (a) the owner of the facility shall cease to be a State or local educational agency, or (b) the facility shall cease to be used for educational and related purposes for which it was constructed, recovery of payments may be had in accordance with the procedures set forth in section 307 of the Act.

§ 118.44 Leasing facilities.

In the case of a grant to lease a facility the grantee shall have the right to

occupy; and to operate, and if necessary to maintain and improve, the premises to be leased during the proposed period of the project.

§ 118.45 Shared use of supplementary educational centers.

Any project to be carried out in supplementary educational centers and involving joint participation by children enrolled in private schools and children enrolled in public schools shall include such provisions as are necessary to avoid the separation of participating children by school enrollment or religious affiliation.

§ 118.46 Patents and copyrights.

(a) Any material of a copyrightable nature produced through a project with financial assistance under Title III of the Act shall not be copyrighted but shall be placed in the public domain.

(b) Any materials of a patentable nature produced through a project with financial assistance under Title III of the Act shall be subject to the provisions of 45 CFR Parts 6 and 8 which are hereby incorporated into the terms and conditions of any approved project. §§ 118.47-118.48 [Reserved]

Subpart F-Review Provisions § 118.49 State educational agency re

view and recommendations.

In order to afford State educational agencies a reasonable opportunity to review and recommend project proposals submitted within a State, the Commissioner will not take final action with regard to any project proposal, nor will the Advisory Committee on Supplementary Educational Centers and Services make its final review of any project proposal, until 30 days after the applicable deadline date established by the Commissioner for the filing of project proposals by local educational agencies. § 118.50 Continuing administrative review and program evaluation.

By the U.S. Office of Education. In order to assist the recipient of funds under Title III of the Act in adhering to statutory and regulatory provisions and to the substantive legal and administrative requirements, the Commissioner will conduct periodic program reviews and evaluations.

(c) "Commissioner" means the U.S. Commissioner of Education.

(d) "Department" means the U.S. Department of Health, Education, and Welfare.

(e) "Elementary school" means a day or residential school which provides elementary education, as determined under State law.

(f) "Equipment" includes machinery, utilities, built-in equipment, and all other items necessary for the functioning of a particular facility as a facility for the provision of educational services, including items such as instructional equipment and necessary furniture; printed, published, and audiovisual instructional materials; and books, periodicals, documents, and other related materials. Equipment does not include the erection of new enclosures or structures, or the expansion, remodeling, alteration, or acquisition of existing enclosures or structures, except to the extent required to house such machinery, utilities, or built-in equipment. Equipment does not include supplies which are consumed in use, or which may not reasonably be expected to last longer than 1 year.

(g) "Federal share” means that percentage of expenditures incurred by the State educational agency which is subject to reimbursement out of grants pursuant to section 503 of the Act. For fiscal years 1966 and 1967, the Federal share is 100 percent. For fiscal years 1968, 1969, and 1970, the Federal share is the percentage computed by the Commissioner for each State, respectively, pursuant to section 503 (b) (2) of the Act.

(h) "Fiscal year," as used with respect to reporting and accounting, means the period beginning on the first day of July and ending on the following June 30. (A fiscal year is designated in accordance with the calendar year in which the ending date of the fiscal year occurs.)

(i) "Local educational agency," or "local agency" means a public board of education or other public authority legally constituted within a State for either administrative control or direction of, or to perform a service function for, public elementary or secondary schools in a city, county, township, school district, or other political subdivision of a State, or such combination of school districts or counties as is recognized in a State as an administrative agency for its public elementary or secondary schools. The term also includes any other public institution or agency having administra

tive control and direction of a public elementary or secondary school.

(j) "Secondary school" means a day or residential school which provides secondary education, as determined under State law, except that it does not include any education provided beyond grade 12. (k) "Special project grants" means grants made to State educational agencies from funds reserved by the Commissioner pursuant to section 505 of the Act.

(1) "State" means, in addition to the several States of the Union, the Commonwealth of Puerto Rico, the District of Columbia, Guam, American Samoa, and the Virgin Islands.

(m) "State educational agency," or "State agency" means the State board of education or other agency or officer primarily responsible for the State supervision of public elementary and secondary schools, or, if there is no such officer or agency, an officer or agency designated by the Governor or by State law.

Subpart B-Basic Grants (Grants From Apportioned Funds)

(a) Purpose and content. The principal condition for basic grants of Federal funds apportioned to a State under Title V of the Act is the submission by the State through the State educational agency of an application or applications to the Commissioner. Any State desiring to receive basic grants shall submit an application or applications annually for each fiscal year on such date or dates as the Commissioner may fix, and in accordance with such procedures as he may prescribe.

(b) Submission and approval. Each application and all amendments thereto shall be submitted to the Commissioner for his approval by a duly authorized officer of the State educational agency. Each application shall indicate the official or officials authorized to submit application material. If found by the Commissioner to be in conformity with the provisions and purposes of the Act and the regulations in this part, the application will be approved subject to the limits of available appropriations. The Commissioner will not finally disapprove an application except after reasonable notice and opportunity for a hearing has been afforded to the State educational agency.

When approved by the Com

missioner, an application becomes the basis for making payments of the Federal share of the sums expended under the application, except that minor deviations of specific amounts of expenditures among program functions and objects from those estimated in the application will not be precluded from Federal financial participation if otherwise made in accordance with the approved application, the Act, and the regulations in this part.

(c) Amendments. Each application must be appropriately amended whenever (1) there is a material change in a pertinent State law or in the organization, policies, or operations of the State educational agency affecting the application or any programs described therein, (2) there is a material change in the content or administration of any such program, or (3) any program is added of deleted. (Minor deviations referred to in the last sentence of paragraph (b) of this section are not deemed to be "material changes" for the purposes of this paragraph.) The submission and approval of amendments shall follow the same procedures and have the same effect specified for applications in paragraph (b) of this section. All applications submitted after the initial application within the same fiscal year shall have the effect of an amendment to the initial application.

(d) Certificate of the State educa. tional agency. Each application and all amendments thereto must include as an attachment a certificate of the officer of the State educational agency authorized to submit the application to the effect that the application has been adopted by the State agency and that the application, as amended, will constitute the basis for operation and administration of the programs in which Federal participation under basic grants will be requested.

(e) Certificate of the State attorney general. Each application or amendment thereto shall include as an attachment a certificate by the State's attorney general, or other official designated in accordance with State law to advise the State educational agency on legal matters, to the effect that the State educational agency named in the plan has authority under State law to submit the application and administer the programs covered by such application, and that all application provisions are consistent with State law.

119.3 Procedures for application review and disposition.

(a) The Commissioner will approve an application only upon his determination that such an application meets the requirements of the Act and the regulations Z in this part. This means that:

8

1

(1) Each program and part thereof proposed in an application or an amendment thereto provides for the development, improvement, or expansion of activities which make a significant contribution to strengthening the leadership resources of the State educational agency, or which make a significant contribution to strengthening its ability to participate effectively in identifying and meeting the needs of elementary and secondary education in the State;

(2) Each application and amendment thereto and each program and part thereof proposed therein otherwise complies with and conforms to other applicable provisions of the Act as indicated in this subpart and subpart D.

(b) In making his determination pursuant to paragraph (a) of this section, the Commissioner will take into consideration appropriate and relevant factors such as the following:

(1) The extent to which each program and part thereof proposed in an application or amendment thereto is directed toward meeting effectively educational needs that have a high priority under I carefully developed current and longrange plans of the State educational agency;

(2) The extent to which an adequate E effort has been made to use, for each program and part thereof proposed in an application or an amendment thereto, 1 other resources available to the State E educational agency, such as funds provided under other Federal grant-in-aid programs;

(3) The extent to which each program and part thereof proposed in an application or amendment thereto will be con=ducted in effective coordination and cooperation with other federally assisted programs conducted by other agencies, institutions, and organizations within the State, such as local educational agencies, State and local health and welfare agencies, and community action groups;

(4) The extent to which each program and part thereof proposed in an application or amendment thereto will promote or contribute to establishing appropriate

balance with respect to both quality and quantity among the several programs and services of the State educational agency; that is, the extent to which the proposal will lead to an adequate level of development in all essential State educational agency programs so that one program will not be strengthened at the expense of another; and

(5) The extent to which each program and part thereof proposed in an application or amendment thereto takes into account the current level of development and will contribute effectively to the improvement of such essential programs as: Long-term planning, aid to local educational agencies in improvement of curricula, quality of teaching and competence of teachers, particularly in basic schools subjects, data processing, public information, technical and consultative services to local educational agencies, research, and staff development.

§ 119.4 State educational agency.

(a) Designation. Each application shall give the official name of the State educational agency which will be the agency responsible for administering the programs set forth in the application.

(b) Organization. Each application shall describe by chart or otherwise the organizational structure of the State educational agency responsible for administering the programs described therein, including a description of the unit or units responsible for such administration, the principal functions assigned to each, the lines of authority within such a unit or units and the administrative relationships of such a unit or units to the rest of the State educational agency. The position titles of all professional personnel in the State educational agency who will be engaged in the conduct of the programs described in each application shall be given in the application, and their major duties and qualifications briefly described. If a program in an application will expand or alter the organzational structure of the State educational agency, the application shall indicate in its description of the organizational structure that part of such structure to be affected.

(c) Authority. Each application shall set forth the authority of the State educational agency under State law to submit the application and to administer the programs set forth therein. Citations to, or copies of, all directly pertinent statutes and interpretations of them by