1. (1) To be eligible for state aid under section 13 of the act, MCL 397.563, a cooperative library shall meet the all of the following:

   1. (a) A cooperative library shall be lawfully established as provided under the act.
   2. (b) A cooperative library shall submit a cooperative plan as provided by R 397.62.
   3. (c) The cooperative library shall employ a director for at least 6 months during the reporting year possessing all of the following:
   4. (i) A level 1 professional certificate as described in R 397.81.

   5. (ii) At least 2 years of full time professional administrative experience.

      1. (iii) Completion of advanced director training within 1 year of appointment.
   6. (d) The cooperative library shall file with the department verification of current fidelity bond coverage. The verification shall be submitted with the original signature page of the annual application for state aid.

2. (2) The final annual state aid payment may be distributed to a cooperative library upon completion of all of the following:

   1. (a) The cooperative library files with the department a copy of an annual financial audit completed within 12 months following the close of the fiscal year.
   2. (b) If the annual financial audit report disclosed a deficit or other material deficiency, the cooperative library shall submit a corrective action plan for review and approval by the department.
   3. (c) If a deficit is disclosed, the corrective action plan shall include a deficit elimination plan and proof that the plan was filed with the department of treasury, as required by section 21 of 1971 PA 140, MCL 141.921.

History: 2009 AACS.