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Professionals U.S. Department of Education

Citations: (R)667.12 AsOfDate: 12/1/94

Sec. 667.12 Application for funds. (a)(1) General. For each fiscal year for which funds are appropriated to carry out this part, a State that has entered into an agreement with the Secretary under Sec. 667.3 shall apply to the Secretary to receive its allotment. The State's application must contain the information required in paragraph (b), (c), or (d) of this section, as appropriate. The Secretary publishes in the Federal Register the date by which a State must submit its application. (2) Established review standards. A State has established review standards if those standards met the requirements in Sec. 667.21 and the Secretary did not disapprove those standards under Sec. 667.22. (b) (1) If a State has not established review standards, to receive its allotment, the State-(i) Must submit a plan to develop-(A) The review standards described in Sec. 667.21, in consultation with the institutions in that State. The plan must describe the manner in which consultation will take place; and (B) The procedures for receiving and responding to complaints from students, faculty, and others regarding institutions in the State, in consultation with institutions in that State. The plan must describe the manner in which consultation will take place; (ii) May submit a plan to-(A) Identify information maintained by institutions and State agencies, other than the information institutions are required to maintain under the Student Right-to-Know and Campus Security Act, that is relevant to developing the State review standards; (B) Identify systems in which the information described in paragraph (b)(1)(ii)(A) of this section is maintained; and (C) Provide estimates of the costs of coordinating the institutions' and State's information systems with an information system developed by the SPRE; and (iii) Must submit a budget for developing the standards and the complaint procedures and, if relevant, for providing cost estimates for the SPRE's information system. The budget cannot exceed the State's allotment. (2) If the State's allotment is less than the State's anticipated cost of carrying out the activities described in paragraph (b)(1) (i) and (ii) of this section, the State shall first use its allotment to develop the review standards. If a portion of the allotment remains after the State develops its review standards, the State may develop procedures for receiving and responding to complaints from students, faculty, and others regarding institutions in the State. The State may use any remaining portion of its allotment to provide cost estimates for the SPRE's information system only after it has completed developing its review standards and complaint procedures. (c) Application after standards are established. (1) If the Secretary has not disapproved the State's review standards under Sec.

667.22, to receive its allotment, the State must submit to the Secretary-(i) Its plan to review referred institutions; and (ii) A budget for those reviews that does not exceed the State's allotment calculated under Sec. 667.11, less any amount expended by the SPRE in carrying out the activities under paragraph (b) of this section. (2)(i) If a SPRE anticipates that the cost of reviewing all the referred institutions will exceed the State's allotment, the SPRE shall, as part of its plan, submit a priority system for selecting institutions to review from among the referred institutions; and (ii) The SPRE shall have discretion in developing its priority system, except that the SPRE must make its top priority for review, referred institutions that the Secretary has scheduled for recertification under 34 CFR part 668, subpart B. (iii) A SPRE may establish the lowest reveiw priority for an institution if-(A) The institution is referred to the SPRE for a reason described in Sec. 667.5(b)(6) concerning the timely submission of an audit report or Sec. 667.5(b)(9) concerning a change of ownership that results in a change of control; and (B) The SPRE previously conducted a review of the institution as a result of a referral for the same reason in Sec. 667.5(b)(6) or (b)(9), respectively, and found no significant violations of the State's standards. (d) Timely submission. A State may submit to the Secretary the information required in paragraph (c) of this section at the same time that it submits to the Secretary the information and documentation required under paragraph (b) of this section. (Authority: 20 U.S.C. 1099a-1099a-3) (Approved by the Office of Management and Budget under the control number 1840-0659) Note: OMB number amended September 7, 1994, effective September 7, 1994.