ect to insure that the completed project conforms with the approved project;

(d) Permit the Secretary and the Comptroller General of the United States, or any of their duly authorized representatives, to have access for the purpose of audit and examination to any books, documents, papers, and records of the applicant that are pertinent to the receipt and use of Federal financial assistance under this part;

(e) Permit inspection by the Secretary or his duly authorized representative of the transmission apparatus acquired with Federal financial assistance at any reasonable time within ten years after completion of the project;

(f) Repay to the United States any Federal grant funds found by the Secretary to have been used contrary to law, to these regulations, to the assurances given the Secretary and to the conditions to the Federal grant, and any amount paid in excess of the Federal share of the actual cost of the approved project;

(g) Credit and pay to the United States any interest earned on Federal grant funds.

(h) Comply with such requirements as are established pursuant to Executive Order 10925 as amended and extended by Executive Order 11114 providing for promoting and insuring equal employment opportunity for all qualified persons without regard to race, creed, color or national origin under contracts for construction, as defined in the aforementioned Executive orders, financed with assistance from the Federal Government. [28 F.R. 5424, June 1, 1963, as amended at 28 F.R. 12256, Nov. 19, 1963; 30 F.R. 14651, Nov. 25, 1965]

§ 60.18 Payment of Federal grant.

(a) Following approval of a project, except where the Secretary for good cause shown has approved an alternative method of payment, the amount of the Federal grant will be paid to the applicant in the following manner:

(1) An amount not exceeding fifty percent of the total amount of the Federal grant entitlement approved by the Secretary will be paid to the applicant after the Secretary's approval of the grant becomes final in accordance with the provisions of § 60.15(b). Payment will be made upon the applicant's request and certification that payment is necessary to meet obligations incurred in the project.

(2) An amount not exceeding forty percent of the Federal grant entitlement will be paid upon completion or substantial completion of the project. Payment will be made only after inspection of the project and the applicant's financial records pertinent to the Federal financial assistance, as the Secretary may deem necessary, and approval by the Secretary of a Request for Final Payment which shall include

(i) Certification that the noncommercial educational television broadcasting station has, where required, Commission authorization to broadcast following acquisition and installation of project equipment,

(ii) Certification that the acquisition and installation of the project equipment either has been completed or is substantially completed in accordance with the project as approved by the Secretary, and

(iii) A detailed financial report itemizing the actual costs incurred in either completing the project or substantially completing the project, and the sources of funds for paying for the items of transmission apparatus delivered, accompanied by certified true copies of invoices, bills or other satisfactory documents that the expenses have been incurred and the amount thereof. If payment is requested on the basis of substantial rather than final completion of the project, the amount of payment provided for herein shall be computed on the basis of the cost attributable by the Secretary to the completed portion of the project (but limited to ninety percent of the Federal share of the then completed project costs). Upon final completion of such project as approved by the Secretary, the applicant will amend the Request for Final Payment to include the remaining project costs and these will be paid in accordance with subparagraph (3) of this paragraph.

(3) The remainder of the Federal grant entitlement will be paid following satisfactory final audit of the applicant's financial records relating to the project. (b) If the actual costs incurred in completing the project are less than the estimated costs which constituted the basis for the Secretary's determination of the amount of the Federal grant, the amount of such grant will be reduced proportionately, and the applicant shall refund any overpayment to the United States.

[28 F.R. 5424, June 1, 1963, as amended at 30 F.R. 14651, Nov. 25, 1965]

§ 60.19 Fiscal reports and records.

(a) The applicant shall furnish such progress or other reports relating to the construction of the project as may be directed by the Secretary.

(b) The applicant shall establish and maintain fiscal controls, accounts and other documents which will provide for the specific identification of the receipt and disposition of all Federal grant funds and clearly identify the nature, purpose, and amount of all expenditures incurred for the project.

(c) The applicant shall maintain accessible and intact all fiscal or other records relating to the receipt and expenditure of the Federal grant funds and relating to the expenditure of the nonFederal share of the cost of the project:

(1) For three years after the close of the fiscal year in which the expenditure was made; or

(2) Until the applicant is notified that such records are not needed for program administration review; or

(3) Until the applicant is notified of the completion of the Secretary's fiscal audit, whichever is later.

(d) The records involved in any expenditure which has been questioned shall be further maintained until the matter has been reviewed and cleared by the Secretary.

(e) The applicant shall maintain, for ten years after completion of the project, adequate descriptive inventories or other records supporting accountability of all items of transmission apparatus costing $100 or more acquired or installed with Federal financial assistance pursuant to this part, and appropriately mark such transmission apparatus in a permanent manner in order to assure easy and accurate identification and reference to such inventory records.

[28 F.R. 5424, June 1, 1963, as amended at 30 F.R. 14651, Nov. 25, 1965]

§ 60.20 Status reports.

During the period commencing with approval of the project by the Secretary and ending ten years after completion of such project for the construction of noncommercial educational television broadcast facilities with respect to which a Federal grant has been made pursuant to this part, the applicant or other owner of such facilities must file with the Secretary:

(a) An annual status report on or before each December 31 following completion of the project, certifying:

(1) That the owner of such facilities continues to be an agency, officer, institution, foundation, corporation or association eligible to be an applicant;

(2) That there has been no change in ownership of such facilities during the reporting period, or describing any change during such period; and

(3) That such facilities are being used for noncommercial educational television broadcast purposes.

(b) A copy of each of the following applications and reports which the applicant or other owner files with the Commission with respect to any such facilities:

(1) Applications for extension of construction permit, license to cover construction permit, modification of construction permit or license, renewal of license and for voluntary or involuntary assignment or transfer of control; and

(2) Ownership reports and annual financial reports.

§ 60.21 Change in eligibility or use.

(a) If, within ten years after completion of any project with respect to which a Federal grant has been made pursuant to this part:

(1) The applicant or other owner ceases to be an agency, officer, institution, foundation, corporation or other association described in § 60.3(a) as being eligible to receive a Federal grant;

or

(2) Any of the transmission apparatus included in the project ceases to be used for any purpose, either permanently or for an indefinite period of time, or such apparatus is used or disposed of for other than noncommercial educational television broadcast purposes, the applicant or other owner shall (except as provided in paragraph (b) of this section) pay to the United States the amount bearing the same ratio to the then fair market value of such apparatus, as the amount of the Federal participation bore to the cost of acquisition or installation of such apparatus.

(b) Where the applicant or other owner proposes to cease using any of the transmission apparatus included in the project for noncommercial educational television broadcast purposes (as set forth in subparagraph (2) of paragraph

(a) of this section, he may file a petition with the Secretary requesting release from the obligation to make repayment to the United States, and setting forth with particularity the grounds and reasons for the request. Such petitions will be granted by the Secretary only for good cause, and only if the proposed cessation of use for noncommercial educational television broadcast purposes has not already taken place, unless the petitioner demonstrates to the satisfaction of the Secretary that such cessation was due to causes not under the control of the petitioner. If the Secretary denies the petition, the applicant or other owner may within 30 calendar days from the date of receipt of notice of such denial, file a petition for reconsideration pursuant to § 60.22.

(c) In any case where the Secretary has reason to believe that any change in eligibility or use of transmission apparatus (as described in paragraph (a) of this section), has already taken place, he will promptly notify the applicant or other owner of the grounds and reasons for his belief that repayment to the United States is required. The applicant or owner may, within 30 days from the date of receipt of such notification, file with the Secretary a petition for reconsideration pursuant to § 60.22.

(d) If the Secretary determines that the applicant or other owner is obligated to make a repayment to the United States he will seek to reach agreement as to the amount of such repayment. If such an agreement cannot be reached, the Secretary will cause an action to be brought in the United States District Court for the district in which the noncommercial educational television broadcast facilities are situated to determine the amount of the repayment, and will take such action as may be necessary to secure repayment.

§ 60.22 Petition for reconsideration.

(a) A petition for reconsideration as provided in §§ 60.15, 60.16, and 60.21 must be timely filed with the Secretary, must state with particularity in what respect the Secretary's action is claimed to be unjust, unwarranted or erroneous, must specifically indicate the relief sought, and must be accompanied by a written statement on the question presented. The petition for reconsideration may be accompanied by a request for a hearing, in which event the petitioner must state with particularity the

grounds and reasons therefor. If the Secretary designates the matter for hearing, he will specify the questions in issue, designate the hearing officer and specify the procedures and rules relating to the conduct of the hearing. If the Secretary does not find that sufficient grounds and reasons exist for granting the relief sought or for providing a requested hearing, he will notify the petitioner, giving reasons for the refusal.

(b) In the event of a hearing the hearing officer shall make a written report to the Secretary based upon the hearing and containing a recommended decision on the issues. A copy of the report shall be mailed to the petitioner, and the petitioner shall have 15 calendar days from the date of receipt (or such additional time as may be given for good cause) to file with the Secretary a written statement setting forth with particularity alleged errors in the report and discussing any policy and legal issues presented.

(c) If no written statement is made by the petitioner or by a State educational television agency on the report of the hearing officer and if the Secretary does not decide to review it, such report shall become the final administrative decision without further proceedings. If a written statement is made on the report of the hearing officer or if the Secrectary decides to review it, he shall review the record of the proceedings and issue a decision based thereon, setting forth the grounds and reasons therefor.

(d) The Secretary will notify each State educational television agency, if any, in any State, any part of which would receive Grade B service or better from the petitioner's broadcast station, of the filing of a petition for reconsideration under this section and each such agency will be given an opportunity to comment upon the petition. In the event the Secretary provides a hearing with respect to an action taken under § 60.15, each such State educational television agency will be given an opportunity to appear and to present relevant information and arguments. Any such agency participating in the hearing will be furnished the report of the hearing officer referred to in paragraph (b) of this section and given an opportunity to make a written statement thereon, prior to the expiration of the time period during which time the petitioner may file his statement under paragraph (b) of this section.

70.11 70.12

Performance evaluations.

Personnel records and reports.

AUTHORITY: The provisions of this Part 70 issued under secs. 101, 401, 503, 506, 701, 53 Stat. 1360, 1379, 1380, 1381, 1397, as amended, sec. 623, 60 Stat. 1043, as amended, sec. 351, 64 Stat. 555, as amended, sec. 141, 76 Stat. 198, as amended, 42 U.S.C. 302, 602, 703, 713, 1202, 291f, 1352, 1382; sec. 1, 69 Stat. 399, 29 U.S.C. 49n; sec. 4, 72 Stat. 533, as amended, 50 U.S.C. App. 2286.

SOURCE: The provisions of this Part 70 appear at 28 F.R. 734, Jan. 26, 1963; codified at 28 F.R. 7931, Aug. 3, 1963, unless otherwise noted.

(a) These Federal standards are issued to implement the statutory and regulatory provisions requiring the establishment and maintenance of personnel standards on a merit basis in the administration of various grant-in-aid programs. The merit system standards are issued by the Social Security Administration, the Welfare Administration and the Public Health Service of the Department of Health, Education, and Welfare, the Bureau of Employment Security, Department of Labor, and the Office of Civil Defense, Department of Defense.

(b) The development of proper and efficient administration of the grant-inaid programs is a concern of both the Federal and the State agencies cooperating in the programs. Proper and efficient administration requires clear defi

nition of functions, the employment of the most competent available personnel, and the development of staff morale and individual efficiency. The merit system provisions of Federal statutes relating to the grant-in-aid programs are directed to the achievement of these ends through the application of personnel standards on a merit basis.

(c) An integral part of the grant-inaid programs is the maintenance by the State of a merit system of personnel administration applicable to the grantaided agencies. The Federal agencies are interested in the development and continued improvement of State merit systems but exercise no authority over the selection, tenure of office, or compensation of any individual employed in conformity with the provisions of such systems.

(d) Laws, rules and regulations to effectuate a merit system in accordance with these standards are a necessary part of the approved State plans required as a condition of Federal grants. Such laws, rules and regulations, and amendments thereto will be reviewed for substantial conformity to these standards. The administration of the merit system will likewise be subject to review for compliance in operation.

(e) Continuing application of these standards will give reasonable assurance of a proper basis for personnel administration, will promote a career service, and will result in increased operating efficiency in the State agencies. In order

to assist States in maintaining their merit systems under these standards, technical consultative service will be made available.

(a) These standards are applicable to all personnel, both State and local, except those hereinafter exempted, engaged in the administration of grant-inaid programs established under the following Federal laws: Social Security Act, Titles I (Old-Age Assistance and Medical Assistance for the Aged), III (Unemployment Compensation), IV (Aid and Services to Needy Families with Children), V (Maternal and Child Welfare), X (Aid to the Blind), XIV (Aid to the Permanently and Totally Disabled), and XVI (Aid to the Aged, Blind, or Disabled, or for Such Aid and Medical Assistance to the Aged); the Public Health Service Act, including the Hospital Survey and Construction Act; the

Wagner-Peyser Act, as amended; and the Federal Civil Defense Act, as amended. The standards apply to personnel engaged in the administration of the federally-aided programs, irrespective of the source of funds for their individual salaries.

(b) At the option of the State agencies, the following positions in the several programs may be exempted from application of these standards; members of State and local boards or commissions; members of advisory councils or Committees or similar boards paid only for attendance at meetings; State and local officials serving ex-officio and performing incidental administrative duties; the executive head of each State agency; one confidential secretary to any of the foregoing exempted officials; janitors; part-time professional personnel who are paid for any form of medical, nursing or other professional service, and who are not engaged in the performance of administrative duties; local civil defense directors; attorneys serving as legal counsel; members of unemployment compensation appeals tribunals and boards of review representing employer and employee interests. Upon request of the State health authority to the Public Health Service or Children's Bureau, as applicable, exemption of hospital and sanatoria and local health department personnel from application of these standards will be considered on the basis of State and local administration.

§ 70.3 Merit system organization.

(a) If a State has a statewide civil service system operating under standards substantially equivalent to those herein provided, such State civil service system should be applicable to the State agencies as defined above.

(b) In the absence of a State civil service system with substantially equivalent standards, there will be established a merit system administered by an impartial body herein referred to as the Merit System Council, the members of which are appointed by the administrative agencies or by the Governor on recommendation of the administrative agencies, for stated overlapping terms, and no member of which is otherwise employed as an official or employee of any of the State agencies affected.

(c) The executive of the merit system, referred to as the Merit System Director, will be appointed under the merit system.

Qualifications for the Director will include training and experience in a field related to merit system administration, and known sympathy with the principles of the merit system.

(d) In the interests of economy and of efficient administration, a joint merit system should serve all the State agencies as defined above unless, because of special circumstances, it is not feasible to establish such a joint system.

§ 70.4 Prohibition of discrimination.

Discrimination against any person in recruitment, examination, appointment, training, promotion, retention or any other personnel action, because of political or religious opinions or affiliations or because of race, national origin or other nonmerit factors will be prohibited. The regulations will include appropriate provisions for appeals in cases of alleged discrimination.

§ 70.5 Limitation of political activity.

Participation in political activity of any employee of the State or local agencies, except those hereinbefore exempted, will be prohibited under the merit system rules, except that an employee will have the right freely to express his views as a citizen and to cast his vote. Such prohibited political activity will include in substance the activities prohibited employees in federally-aided agencies under the Federal Hatch Political Activities Act, as amended. (Individuals whose principal employment, whether or not under the merit system, is in a federallyaided agency, are subject to the prohibitions in the Hatch Act, administered by the U.S. Civil Service Commission.) § 70.6 Classification plan.

A classification plan for all positions in the agency, based upon investigation and analysis of the duties and responsibilities of each position, will be established and maintained. The classification plan will include an appropriate title for each class of position, a description of the duties and responsibilities of positions in the class, and requirements of minimum training, experience, and other qualifications suitable for the performance of the duties of the class of position.

§ 70.7 Compensation plan.

A plan of compensation for all classes of positions in the agency will be established and maintained. Such plan will include salary schedules for the various