year for State institutional library services will not be less than such expenditures in the preceding fiscal year. (See § 130.89 (b) and (f) of this part.)

(d) Advisory council. The State plan shall provide for the establishment of a council which is broadly representative of State institutions eligible for assistance under this subpart which shall act in an advisory capacity to the State

agency.

Subpart G-Library Services to the Physically Handicapped

§ 130.58

State plan requirementsTitle IV, Part B.

(a) Policies and objectives. The State plan shall contain a statement describing the policies and objectives for the establishment or improvement of State plans for library services to physically handicapped persons, including the blind and the visually handicapped, certified by competent authority (as determined by the State agency and set forth in the State plan) as unable to read or to use conventional printed materials as a result of physical limitations. This statement shall describe the immediate and long-range plans of the State agency in establishing and improving these services. The State plan shall set forth its policy for determining the types of public and other nonprofit libraries, agencies, or organizations, if any, which are ineligible to participate in the program under this subpart. (b) Criteria-participation. State plan shall include a statement of the criteria which the State agency shall use in evaluating applications for funds under this subpart and in assigning priority to project proposals and shall describe the method by which information, including the criteria, will be generally made known. The State plan shall provide an assurance that all appropriate public or nonprofit libraries, agencies, or organizations for the physically handicapped will be accorded an opportunity to participate in the program under Part B of Title IV of the Act.

The

(c) Maintenance of effort. The State plan shall contain assurances satisfactory to the Commissioner that funds available from sources other than Federal sources in any fiscal year for expenditures for library services to the physically handicapped will not be less than actual expenditures from such sources in the second fiscal year preceding the year

in which the State seeks a payment from the Federal allotment available under Part B of Title IV of the Act. (See § 130.89 (f) of this part.)

(d) Council. The State plan shall provide for the establishment of a council which is representative of eligible agencies and which shall act in an advisory capacity to the State agency.

Subpart H-Federal Financial
Participation

§ 130.68 Federal payments to a State. Payments to a State under this part will be made only after approval of the State plan and the submission of required estimates and reports. The Commissioner will from time to time estimate the amount to which a State is entitled under the Act and the regulations in this part, and such amount shall be paid to the State, in advance or by way of reimbursement, at such time or times and in such installments as the Commissioner may determine, after necessary adjustment on account of any previously made overpayment or underpayment.

§ 130.69 Approval of State plan.

The Commissioner shall approve a State plan which he determines meets the purposes and provisions of the Act and the regulations in this part, and shall notify the State agency of the granting or withholding of approval in each such case. However, the Commissioner shall not finally disapprove a State plan or amendment thereto without first affording the State reasonable notice and opportunity for a hearing. § 130.70 Effective dates of State plan and amendments.

Federal financial participation is available only with respect to amounts expended under an approved State plan or amendments. Absent any contrary notification, the date on which the State plan or amendments thereto shall be considered to be in effect is the date of approval by the Commissioner. The State agency will be apprised of the effective date in the notice of approval sent to the State agency by the Commissioner.

expenditures during the Federal fiscal year for which funds are allotted. Federal allotments to a State under Titles III and IV, Parts A and B, are available during the Federal fiscal year 1967 only for expenditures incurred by the State for developing the State plan with respect to Titles III and IV, Parts A and B. Federal allotments to a State under Title II are available for expenditures for both administrative activities and construction projects approved during the Federal fiscal year in which the allotment is made and the next Federal fiscal year. A Federal fiscal year is one commencing on July 1 and ending the following June 30.

The amount of any State's allotment for any fiscal year under section 102, 202, 302, 402, or 412 of the Act which -the Commissioner determines will not be required during the period for which such allotment is available for carrying out that State's plan shall be available for reallotment, on such dates during such year as the Commissioner 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 503 of the Act. Any amounts reallotted shall be determined by the Commissioner on the basis of (a) reports filed by the States of the amounts required to carry out the State plan approved under sections 103, 203, 304, 404, and 414, respectively, of the Act and (b) such other information as he may have available. Any amounts reallotted pursuant to section 503 of the Act shall be deemed part of the State's allotment for that fiscal year under section 102, 202, 302, 402, or 412 of the Act. § 130.73 Federal and State shares of eligible expenditures.

(a) Federal share. The Federal share for Titles I, II, and IV shall be as promulgated by the Commissioner pursuant to section 104(d) of the Act in accordance with the provisions of section 104 (c) of the Act, except that for Title IV the Federal share for fiscal year 1967 shall be 100 percent. The Federal share for Title III shall be 100 percent for fiscal year 1967 and 50 percent for each fiscal year thereafter.

(b) State share. The State share (State percentage) shall be the difference between the cost of activities under

the State plan and the applicable Federal share. In meeting such State share, the following will be accepted:

Title 1: Expenditures by the State and its political subdivisions for administration and activities under the State plan.

Title 11: Expenditures by the State and its political subdivisions for administration of the State plan and the administration and supervision of construction projects; and expenditures for carrying out construction projects under the State plan.

Title III: Expenditures for administration and activities under the State plan (applies after fiscal year 1967).

Title IV, Part A: Expenditures only by the State for administration and activities under the State plan (applies after fiscal year 1967).

Title IV, Part B: Expenditures from other than Federal sources for administration and activities under the State plan (applies after fiscal year 1967).

(c) Limitation. The expenditures which are to be considered in computing the amount of Federal financial participation under a State plan are only those which are made in furtherance of the purposes of the Act and which do not inure to the personal benefit of any donor.

§ 130.75

Determination of fiscal year's allotment to which an expenditure is chargeable.

An expenditure made under Titles I, III, and IV of the Act will be charged to that Federal fiscal year in which the expenditure was incurred. State and local laws and regulations shall determine when an expenditure by the State agency or participating entity is incurred. An expenditure made under Title II of the Act will be charged to the State's allotment available during the Federal fiscal year in which the project was approved by the State agency.

§ 130.76 Construction contract provisions.

The State agency shall require that construction contracts for projects ap

§ 130.92 Right to hearing and judicial review.

(a) Hearing. The Commissioner will not finally disapprove any State plan submitted under the Act, or any modification thereof, without first affording the State submitting the plan reasonable notice and opportunity for a hearing.

(b) Judicial review. If any State is dissatisfied with the Commissioner's final action with respect to the approval of its State plan submitted under any title or with respect to his final action under section 501 of the Act, such State shall have the rights of appeal set out in section 502(d) (2), (3), and (4) of the Act.

§ 130.93 Termination of program.

If a State desires at any time not to participate in one or more of the programs, or upon termination of the program(s), the State shall refund to the U.S. Office of Education any unexpended or unobligated funds which have been paid to the State agency for the specific program purposes.

§ 130.94

Transition provisions.

A State plan approved prior to the promulgation of these revised regulations remains in effect through March 31, 1967, unless, prior to that date, the State plan is revised to be in accord with these regulations, or the termination date has been extended by the Commissioner for good cause shown in an application therefor by the State agency. After such effective termination date, in order for a State to continue to receive payments under the Act, the State plan must have been revised as to those programs in which the State wishes to participate so as to be in conformity with the regulations of this part.

Definitions.

As used in this part:

(a) 'Section 1009" means section 1009 of the National Defense Education Act of 1958, Public Law 85-864, as amended (72 Stat. 1605), 20 U.S.C. 589.

(b) "State" means a State, Puerto Rico, the District of Columbia, the Canal Zone, Guam, or the Virgin Islands.

(c) "Commissioner" means the United States Commissioner of Education, Department of Health, Education, and Welfare, or his delegates.

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

(f) "Educational statistics" means the information, facts, and data concerning education in public and nonpublic educational institutions which are recorded in and reported by State or local systems of records and reports, or both, for the purpose of reflecting the condition and progress of organized education in the State.

(g) "State plan" or "plan" means the document or documents submitted by a State for approval by the Commissioner to comply with the requirements for participation under section 1009.

(a) Purpose. A basic condition for he payment of Federal funds to a State or improvement of statistical services f State educational agencies is the submission of a State plan meeting the reuirements of section 1009. This plan hall include a description of the presnt educational statistical activities in he State educational agency and of the rogram(s) proposed by the State eduational agency for improving the State nd local statistical services, and the eneral policies and procedures to be ollowed in so doing, except that, in ases where the plan provides for an valuation of the present educational tatistics program, the submission of a escription of the present program, in onnection with the report of such evalation when completed will be accepted s a substitute for the description in the State plan. The plan shall clearly how how each program under the plan 3 a "new program" or "an addition to n existing program" or "an expansion f an existing program" within the meaning of § 140.3. The description of ach of the State agency programs shall et forth the scope of the agency activiies and arrangements to be undertaken n carrying out such programs. The lan, when approved by the Commisioner, shall constitute the basis on which Federal grants will be made, as well as a basis for determining the proriety of State and local expenditures in which Federal participation is requested.

(b) Submission. The State plan and all amendments thereto shall be subnited to the Commissioner for approval by a duly authorized officer of the State gency. The plan shall indicate the oficial or officials authorized to submit olan material.

((c) Amendment. The administration of the programs must be kept in conformity with the approved State plan. Whenever there is any material change in the content or administration of a program, or when there has been a change in pertinent State law or in the ɔrganization, policies, or operations of the State educational agency affecting a program, under the plan, the State plan must be appropriately amended.

(d) Certificate of the State educational agency. The State plan and all amendments thereto must include as an attachment a certificate of the officer of

the State educational agency authorized to submit the State plan to the effect (1) that the plan or amendment has been adopted by the State agency and that the plan, or plan as amended, will constitute the basis for operation and administration of the program (s) in which Federal participation under section 1009 will be requested and (2) that the program (s) is (are) either new program(s) or additions to or expansions of one or more existing programs within the meaning of § 140.3.

(e) Certificate of the State Attorney General. The plan must also include as an attachment a certificate of the State's Attorney General to the effect that the State agency named in the plan is the "State educational agency" as defined in § 140.1(e) which has authority under State law to submit the State plan and to carry out the program(s) described therein as the sole State agency responsible for the administration of the plan, and that all of the plan provisions are consistent with State law. If an official, other than the Attorney General of the State, is designated by State law to advise the State educational agency on legal matters and if the rulings of such official have the same legal effect with respect to the agency as rulings of the Attorney General have with respect to agencies advised by him, the certification may be made by such official. § 140.3

New programs and additions to or expansions of existing programs. (a) New programs. A new program is a plan of operations and the activities to carry out such plan in which none of the principal elements involved were being employed before the program was initiated and which does one or more of the following: (1) Collects and disseminates educational information from a category of sources not before used, e.g., from kindergartens, libraries, junior colleges or private schools, the same types of information hitherto collected only from public schools, grades 1 through 12; or (2) collects, processes, or disseminates information of a new type which requires a different technique of collection, processing, or analysis, or a different type of publication, to make it useful for educational purposes, e.g., information concerning the causes of absence, physical and health characteristics of children, or the effects of one or more of these on educational progress, collected in a State where only classroom

or

of one or more political subdivisions of the State in which the public library services will be provided under the State plan.

(e) "Interlibrary cooperation," for the purpose of subpart E, means the establishment and operation of systems or networks of libraries, including State, school, college, and university, public, and special libraries, and special information centers working together to achieve maximum effective use of funds in providing services to all library users. Such systems may be designed to serve a community, metropolitan area, region within a State, or may serve a statewide or multistate area.

(f) "Library services to the physically handicapped," for the purpose of subpart G, means the provision of library services through public or other nonprofit libraries, agencies, or organizations, to physically handicapped persons, including the blind and visually handicapped, certified by competent authority as unable to read or to use conventional printed material as a result of physical limitations.

(g) "Project" or "construction project," for the purpose of subpart D, means a construction project which is eligible for a grant under an approved State plan and which will result in a usable public library facility.

(h) "Public library" means a library that serves free all residents of a community, district, or region without discrimination and receives its financial support in whole or in part from public funds. The term does not include libraries such as law, medical, school, and academic libraries, which are organized to serve a special clientele or purpose.

(i) "Public library construction," for the purpose of subpart D, means the construction of new public library buildings and the expansion, remodeling, and alteration of existing buildings to be used as public libraries, and initial equipment for any such buildings (but not books or other library materials); architect's fees; and the cost of the acquisition of land.

(j) "Public library services," for the purpose of subpart C, means library services which are provided by or on behalf of a public library. The term does not include those library services that are properly the responsibility of the schools.

(k) "State" means a State of the Union, the District of Columbia, Puerto Rico, Guam, American Samoa, the Trust Territory of the Pacific Islands, or the Virgin Islands.

(1) "State institutional library services," for the purpose of subpart F means the providing of books and othe library materials, and of library service to (1) inmates, patients, or residents c penal institutions, reformatories, residen tial training schools, orphanages, or ger eral or special institutions or hospita operated or substantially supported b the State, and (2) students in residenti schools for the handicapped (includir mentally retarded, hard of hearing, dea speech impaired, visually handicappe seriously emotionally disturbed, cri pled, or other health impaired perso who by reason thereof require speci education) operated or substantial supported by the State.

(m) "State agency" means the "Sta library administrative agency" (Secti 504 (b) of the Act), the State libra agency, or any other official State agen charged by State law with the extensic and development of public library ser ices, the construction of public librarie the promotion of interlibrary cooper tion, or the provision of specialized Sta library services.

Subpart B-State Plans

§ 130.2 State plan purposes.

The purposes of the State plan are set forth the manner and procedur under which the State will carry out t State program(s) to promote the furth extension of free public library servic to areas without such services or wi inadequate services, to provide for t construction of public libraries, to pr mote interlibrary cooperation, to assi the States in providing certain specia ized State library services, and to provi the basis on which Federal payments a made. Therefore, in order to participa in one or more of the programs describe in this part, a State must submit to th Commissioner a State plan which mee the requirements of this part applicab to such programs.

§ 130.3 State plan provisions.

(a) State agency. The State pla shall give the official name of the agenc which will be the sole agency for admin istering or supervising the administratio of the plan and shall indicate the pro