PURPOSE: This rule establishes eligibility requirements and procedures for the administration of state grants-in-aid appropriated to the state library for the improvement of library services, including state aid for public libraries. These funds are administered by the state librarian under the direction of the secretary of state.

1. (1) The state librarian will administer and distribute moneys appropriated by the general assembly for state grants-in-aid, including state aid for public libraries, in accordance with the provisions set forth herein and applicable state laws.

2. (2) Each of the following requirements must be met for participation in state grants-in-aid:

   1. (A) A public library must be legally established according to the provisions of Chapter 182, RSMo (1994), as amended, or other laws of the state related to libraries;
   2. (B) A public library must receive from tax funds an amount equal to ten cents per one hundred dollars (10¢:$100) assessed valuation authorized in accordance with the applicable provisions within Chapter 182, or section 137.030, RSMo (1994), as amended. A city library which is not supported by a library tax must receive an appropriation from the city of an amount equal to ten cents per one hundred dollars (10¢:$100) assessed valuation. The requisite funds must be assessed and levied, or otherwise appropriated in the case of a city library not supported by a library tax, for the year preceding that in which the grant is made. No grant shall be affected because of a reduction in the rate of levy which is required by the provisions of section 137.073, RSMo (1994), as amended; 15 CSR 30-200
   3. (C) The rate of tax levy or appropriation for the public library must be maintained at the rate in force on December 31, 1946, or on the date of its establishment; and
   4. (D) Additional eligibility requirements and local funding matches appropriate to the project may be established for state grants-inaid awarded under section 181.021(7), RSMo, and for other grants-in-aid appropriated by the general assembly. Where applicable, and if approved by the secretary of state, such additional eligibility requirements will be defined in the call for applications for each type of grant-in-aid.

3. (3) Per Capita Grants of State Aid for Public Libraries.

   1. (A) During each fiscal year, the state librarian will distribute to eligible public libraries on a per capita basis at least fifty percent (50%) of all moneys appropriated by the general assembly as state aid to public libraries, the allocation of which shall be made in accordance with section 181.060.2, RSMo (1994), as amended.
   2. (B) All eligible public libraries shall file the certification required by section 181.060.3, RSMo (1994), as amended, with the state library no later than June 30 of each year. The state library will provide certification forms with instructions to all public libraries annually and upon request.
   3. (C) All certification forms will be examined by state library staff for completeness, compliance with eligibility criteria, and adherence to instructions. Requests to the applying library for additional information or verification of information must be responded to within the time frames specified by state library staff.
   4. (D) Failure of a public library to timely file the requisite certification forms or to timely respond to requests for or verifications of additional information, upon notice of the state librarian, shall cause the library to forfeit its per capita state aid.
   5. (E) After review by state library staff, the certification forms shall be presented to the state librarian who shall then certify to the commissioner of administration the appropriate amount to be paid to each eligible library.
   6. (F) Per capita state aid grants will be remitted to all certified libraries in quarterly payments.
   7. (G) All libraries receiving per capita grants of state aid shall report to the state librarian in connection with the annual survey of services the expenditures made from the per capita grant of state aid.

4. (4) Other Grants of State Aid To Public Libraries Under Section 181.060, RSMo.

   1. (A) For each fiscal year, the state librarian, in his/her discretion, shall administer and supervise grants to public libraries of the balance of all moneys appropriated by the general assembly pursuant to, in accordance with, and for the purposes set forth in section 181.060.4, RSMo (1994), as amended.
   2. (B) State aid grants to newly established library districts will be made in accordance with the certification process in section 181.060.4, RSMo (1994), as amended.
   3. (C) For appropriations which designate a directed distribution of funds to libraries which meet specific eligibility criteria, the state library will solicit information from the libraries to determine which ones are eligible for participation.

   4. (D) For appropriations for which the funds are awarded on a competitive basis, the following application process will be used:

      1. 1. Applications must be submitted in

the form and manner prescribed by the state library, and must include all required signatures;

1. 2. Applications shall include the fol-

lowing information, at a minimum. Additional information and supporting documentation may be requested as appropriate to the type of applications:

1. A. Description of the project that

includes the benefit to be provided to users of the library, project goals, action plan, and a schedule of implementation;

1. B. Staffing level and expertise suffi-

cient to accomplish the project;

1. C. Project budget, including specifi-

cation of any required local matching funds;

1. D. Indication that the project can be

completed within the specified grant period; and

1. E. Plan for the evaluation of the pro-

ject;

1. 3. All applications will be examined by

state library staff for completeness, compliance with regulations and eligibility criteria, and adherence to instructions. Requests to the applying library for additional information or verification of information must be responded to within the time frames specified by state library staff. Completeness, compliance with regulations and eligibility criteria do not obligate the state librarian or the secretary of state to award any grant. However, applications that are incomplete, substantively inaccurate, or received after the deadline shall be rejected; and

1. 4. The state librarian shall review the

applications, and provide the secretary of state with recommendations for grant awards. The secretary of state shall make the final ruling on funding of specific applications. Applications may be granted in whole or in part.

1. (E) Grant Period.

   1. 1. The grant period begins and ends on

the dates specified in the grant letter. Grants must be completed within the fiscal year (July 1 to June 30) in which the grant is awarded. Grant moneys may take longer to issue than the official grant notification letter. While the grantee cannot charge expenses incurred before the grant period begins, appropriate charges incurred after the grant period begins but before the moneys are available, are allowed.

1. 2. Grantees receiving twenty thousand

dollars ($20,000) or less shall receive seventy percent (70%) of the grant funds as soon after the awarding of the grant as practicable. The remaining thirty percent (30%) of the grant shall be paid to the grantee after successful project completion and submission of all required reports.

1. 3. Grantees receiving more than twenty

thousand dollars ($20,000) shall receive a first payment of thirty-five percent (35%) as soon as practicable after the awarding of the grant. A second payment of thirty-five percent (35%) shall be made after one-third (1/3) of the project completion is verified through an interim report; with the remaining thirty percent (30%) paid upon successful project completion and submission of all required reports.

1. (5) Appeal Procedures.

   1. (A) Any library denied funding may inform the state library in writing of its intent to seek a hearing. This letter of intent must be received by the state library within fifteen

2. (15) days following notice of the funding decisions.

   1. (B) The state library shall convene a meeting of an independent committee to consider the library’s appeal. The state library, the appellant, and the president of the Missouri Library Association or his/her designee shall each choose one (1) person to serve on the committee.
   2. (C) Unless extended by written agreement of the state library and the appellant, the appeals committee shall meet no later than fifteen (15) days following the receipt of the appeal by the state librarian. The appellant library and the state library may, but need not, be represented by counsel and may, through staff, appear before the committee to testify.
   3. (D) The committee shall make written recommendation to the secretary of state regarding the appeal. The decision of the secretary of state is final.

3. (6) Audit Requirements.

   1. (A) Grantees must comply with the audit requirements set forth in Missouri statutes for local governmental units. The grantee is responsible for ensuring that the state library receives copies of the audit report in a timely fashion.

   2. (B) Specific accounting requirements for competitive grants awarded under the state aid to public libraries and state grants-in-aid programs are—

      1. 1. Grant money must be deposited in an

auditable interest-bearing account and interest must be applied to the project;

1. 2. Grant work will be monitored in

progress. State library staff may visit the project site(s) for review at any time during the grant cycle;

1. 3. The grantee must submit an interim

report on the grant project, in the form provided by the state library. The report shall include a narrative of work completed, and a financial status report;

1. 4. Any items or services purchased by

the grantee in excess of three thousand dollars ($3,000) must be competitively bid and require the solicitation of at least three (3) bids. If three (3) bids are not received, proof of bid solicitation is sufficient. Proof of bid solicitation on all such items must be submitted with the financial reports;

1. 5. Projects using in-kind contributions

as local matches will need to submit appropriate proof (for example, records of hours worked), with the financial reports;

1. 6. Any changes in the project, including

changes in budget allocations and project director, must be requested in advance in writing to the state library;

1. 7. In the event of default on the grant

project by the grantee, the grant will be revoked and all funds must be returned to the state library. The grantee will be notified by letter by the state library and will receive thirty (30) days’ written notice of noncompliance before the grant is revoked; and

1. 8. The grantee shall prepare a final

report on the grant project. Forms will be provided for both segments of the final report, 1) project summary and evaluation and 2) final financial report.

1. (7) Other Grants to Libraries. Unless otherwise expressly provided for, any appropriations made by the general assembly other than appropriations made under section 181.060, RSMo with respect to which the state library is designated as the administering agent shall be distributed pursuant to applications or requests for proposals governed to the greatest degree practicable by the procedures set forth in sections (4) through

2. (6) hereinabove with the following exceptions:

   1. (A) Applications for appropriations of funds awarded on a competitive basis will be reviewed by an independent committee appointed by the state librarian. Committee members may include, but are not limited to, members of the library advisory committee and representatives of the library community. The independent committee shall receive copies of all eligible applications and selection criteria prior to the review meeting. The independent committee shall evaluate each application and make its recommendations on funding. The state librarian shall review the committee recommendations, and provide the secretary of state with recommendations for grant awards. The secretary of state shall make the final ruling on the applications to be funded; and
   2. (B) The state librarian may, in his/her discretion, allow extensions for grant project completion, subject to the appropriation and availability of funds. Requests for extension of the grant period must be made in writing to the state librarian at least one (1) month prior to the end of the grant period.

AUTHORITY: sections 181.021, RSMo (Cum. Supp. 1996) and 181.060, RSMo (1994)*. Emergency rule filed Nov. 18, 1996, effective Nov. 28, 1996, expired May 26, 1997. Original rule filed Nov. 18, 1996, effective May 30, 1997.

*Original authority: 181.021, RSMo (1955), amended 1991, 1995; 181.060, RSMo (1945), amended 1955, 1959, 1981, 1987, 1991.