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 appli cation 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 c: deleted. (Minor deviations referred t in the last sentence of paragraph (b) d 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 applica tions 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 a amendments thereto must include as a attachment a certificate of the office of the State educational agency au thorized to submit the application to the effect that the application has bee adopted by the State agency and that the application, as amended, will costitute 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 amend ment 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 mat ters, 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 hat such an application meets the re[uirements of the Act and the regulations n this part. This means that:

(1) Each program and part thereof >roposed in an application or an amendnent thereto provides for the developnent, improvement, or expansion of ctivities which make a significant conribution to strengthening the leadership esources of the State educational gency, or which make a significant contribution to strengthening its ability o participate effectively in identifying and meeting the needs of elementary and econdary education in the State;

(2) Each application and amendment hereto and each program and part hereof proposed therein otherwise comlies 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, he Commissioner will take into considtration appropriate and relevant factors such as the following:

(1) The extent to which each program and part thereof proposed in an applicalon or amendment thereto is directed oward meeting effectively educational leeds that have a high priority under carefully developed current and longange plans of the State educational Agency;

(2) The extent to which an adequate effort has been made to use, for each >rogram and part thereof proposed in an application or an amendment thereto, >ther resources available to the State 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 conducted 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

grams and projects (including the acquisition of equipment and where necessary the construction of school facilities) for the education of handicapped children at the preschool and elementary and secondary school levels, for administration of the State plan (including State leadership activities and consultative services), and for planning on the State and local level and (2) an annual description of the projected activities to be carried out under the State plan during the forthcoming fiscal year.

(b) Effect of State plan. Each State plan, when approved by the Commissioner, shall constitute the basis on which Federal grants will be made to that State, and the basis for determining the propriety of expenditures of those grant funds.

(c) Amendments. The administration of the program carried out under Title VI of the Act shall be kept in conformity with the approved State plan. Whenever there is any material change in the content or administration of the program or when there has been any change in pertinent State law or in the organization, policies, or operations of the State educational agency affecting the program under the plan, the plan shall be appropriately amended.

(d) Submission. Each State plan and all amendments thereto shall be submitted to the Commissioner by a duly authorized officer of the State educational agency. Each State plan shall indicate the official authorized to submit plan materials.

(e) Certificate by the State educational agency. Each State plan and each amendment thereto shall include as an attachment a certificate by the officer of the State educational agency authorized to submit the plan to the effect that the plan or amendment has been adopted by the State educational agency and that the plan, or plan as amended, will constitute the basis for operation and administration of the activities to be carried out in that State under Title VI of the Act.

(f) Certificate by the State Attorney General or other appropriate State legal officer. Each State plan shall also include, as an attachment, a certificate by the State Attorney General or other appropriate State legal officer to the effect that the State educational agency has authority under State law to submit the plan and to administer or to supervise the administration of the plan; that

such agency has authority under State law to carry out, directly or through local educational agencies, the activities described therein; and that all plan provisions are consistent with State law.

(g) Approval by the Commissioner. The Commissioner will approve each State plan, or amendment thereof, which he determines meets the requirements of Title VI of the Act and the regulations in this part, and will notify the State educational agency of the granting. conditioning, or withholding of approval in each such case. No final action with respect thereto, other than one of approval, will be taken by the Commissioner, however, unless he first notifies the State educational agency of his proposed action and, in connection therewith, affords such agency a reasonable opportunity for a hearing on whether the affected plan or amendment meets such requirements.

(h) Withholding. Whenever the Commissioner, after reasonable notice and opportunity for a hearing, finds (1) that the State plan fails to comply with the requirements of Title VI of the Act and the regulations in this part, or (2) that in the administration of the plan there is a failure to comply substantially with any such requirements, the Commissioner will notify the State educational agency that the State will not be regarded as eligible to participate in activities under Title VI of the Act until he is satisfied that there is no longer any such failure to comply.

(i) Effective date of State plan. The State plan shall indicate the date on which it shall become effective, which shall in no event be earlier than the date on which the State plan is received in substantially approvable form by the Commissioner.

§ 121.3 Administration by the State educational agency.

(a) Designation of State educational agency as sole agency. Each state plan shall give the official name of the State educational agency and provide that the State educational agency will be the sole agency for administering of supervising the administration of the plan.

(b) Authority and organization. Each State plan shall set forth the authority of the State educational agency under State law to submit the plan and to administer or supervise the administration of the plan and shall describe both the legal and functional relationships be

tween and among the State educational agency, other State agencies, and local educational agencies for the purpose of carrying out the State plan. Citations to, or copies of, all directly pertinent statutes and interpretations of law made by appropriate State officials, whether done by regulation, policy statement, opinion of an appropriate State legal officer, or a court decision, shall be furnished as part of the plan or in the appendix thereto. All copies shall be certified as correct copies by an appropriate official.

(c) Staff for administration. The State plan shall describe, by chart or otherwise, the organization of the State educational agency for administration of the State plan. The lines of authority within the administrative unit or units responsible for the programs under the plan shall be shown, together with pertinent administrative arrangements or relationships of such unit or units to the rest of the State educational agency, and to other State and local public agencies utilized to carry out the State plan.

(d) Duties and qualifications of professional personnel. Each State plan shall describe the duties of State administrative and supervisory positions, existing and proposed, under the State plan. The plan shall also set forth the required qualifications for all professional administrative and supervisory positions under the State plan. If State statutes or regulations establish such positions and give such information, the plan shall so state.

(e) Advisory committees. If State advisory committees are used with respect to one or more aspects of the State plan, the plan shall describe the membership, method of establishment, and duties of such advisory committees.

(f) Administration and supervision of programs and projects. Each State plan shall provide that programs and projects initiated, expanded or improved under Title VI of the Act will be administered either (1) directly by the State educational agency to the extent consistent with he limitations in § 121.25, or (2) by local educational agencies with the approval and under the supervision of the State educational agency. These include interdistrict, intercounty, regional, State-local, and interstate projects or programs. The State plan shall describe the policies and procedures to be followed by the State educational agency in initiating, approving, and conducting its own programs and projects; in initiating, reviewing, and approving programs and

projects to be administered by local educational agencies; and in assisting and supervising the administration of approved programs and projects. The State plan shall indicate the extent to which two or more local educational agencies may enter into agreements and submit applications for carrying out jointly operated programs and projects under Title VI of the Act.

§ 121.4 Needs of handicapped children.

(a) Each State plan shall provide that the programs and projects initiated, expanded, and improved with funds under Title VI of the Act will be designed to meet the special educational and related needs of handicapped children throughout the State.

(b) In order to meet the special educational and related needs of handicapped children, programs and projects under Title VI of the Act must provide (1) educational services to handicapped children which are in addition to, or distinct from, educational services provided to children who are not handicapped, or (2) other services which are directly related to the provision of educational services and are designed to overcome or ameliorate the handicaps of handicapped children, but only to the extent such other services are necessary to enable handicapped children to benefit from the educational services available to them, or (3) both.

§ 121.5 Description of present program.

Each State plan shall include (a) a quantitative and qualitative description of present programs and projects for the education of handicapped children in the State, and (b) a quantitative and qualitative description of programs and projects which require initiation, expansion, and improvement in order to meet the special educational and related needs of all handicapped children in the State. § 121.6

Standards.

(a) Each State plan shall provide that the programs or projects initiated, expanded, and improved with Federal funds under Title VI of the Act will be of sufficient size, scope, and quality (taking into consideration the special educational and related needs of such children described in §§ 121.4 and 121.5) as to give reasonable promise of substantial progress toward meeting those needs.

(b) Each State plan shall set forth standards relating to the size, scope, and

Office or State agency receiving the officer or employee on assignment with respect to the internal operation and management of the receiving agency (for example, hours of duty, building rules, and operating procedures) shall govern the employment and conduct of such employee or officer except as otherwise provided in the agreement through mutual consent.

(4) Each agreement for the assignment of an officer or employee may contain any other provisions not in violation of the Act or the regulations in this part which the Office or State agency finds necessary to carry out the assignment provided for therein and which are mutually acceptable.

§ 120.8 Modification of agreement.

Each agreement for an assignment of personnel between the Office and a State agency may be shortened, extended, or otherwise modified upon the mutual agreement of both parties. Such modifications shall be in accordance with section 507 of the Act and the regulations in this part.

§ 120.9 Termination of agreement.

Each agreement for an assignment of personnel between the Office and a State agency may be terminated by mutual consent or upon 60 days' notice by either party of its intention to terminate the agreement.

§ 120.10 Reports and evaluation.

The parties to each agreement shall adopt such procedures and make such reports as the Commissioner may find necessary for the evaluation of the progress of assignments under the agreement in light of the purpose stated in section 507(b) of the Act and § 120.2. Such procedures and reports shall include, but not be limited to, (a) periodic consultations between the Office and the State agency, (b) exchange of reports, and (c) maintenance of records supporting such reports and mutual access thereto.

§ 121.1

Subpart A-Definitions
Definitions.

As used in this part:

(a) "Acquisition" includes purchase, lease, or lease-purchase.

(b) "Act" means the Elementary and Secondary Education Act of 1965 (Public Law 89-10), as amended.