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and paid for if competition is assured with nonpatented or nonproprietary articles or between two or more manufactured patented or proprietary articles accepted as equally suitable for the same purpose. Nothing in this section shall be construed as a prohibition against the use of any patented or proprietary material, specification, or process for a distinctive type of construction on relatively short sections of road for experimental purposes.

SEC. 4. The supervision of each project by the State highway department shall include adequate and continuous engineering inspection throughout the course of construction.

SEC. 5. Written notice of commencement and completion of work on any project shall be given promptly by the State highway department to the Bureau of Public Roads.

SEC. 6. Reports of the progress of construction showing force employed and work done, shall be furnished as requested by the Secretary or his authorized representatives.

SEC. 7. No work shall be done by direct labor or force account unless a State highway department shall have demonstrated to the satisfaction of the Secretary or his authorized representative that it is able and equipped to undertake such work at costs comparable with contract work similar in character. Any work done by direct labor or force account shall be subject to these rules and regulations. All materials used on such work must comply with approved specifications and be purchased under competitive bids, except that for minor quantities of materials, which may be obtained locally from a number of independent sources, the receipt by the State of letter quotations from not less than three local dealers will be considered as sufficient means to insure economy and efficiency in the corresponding expenditure of funds. Published advertisements shall be employed in the purchase of any large quantities of materials.

REGULATION 10. LABOR AND EMPLOYMENT

SECTION 1. No convict labor shall be employed and no materials manufactured or produced by convict labor shall be used on any project constructed under these rules and regulations.

SEC. 2. If a local employment service is maintained by the Federal Government, or by the Federal Government in cooperation with the State, in the vicinity of any work undertaken under this Act, the contract shall require that unskilled labor for a project shall be selected from qualified workers referred by such agency.

SEC. 3. (a) To prevent the exploitation of labor all contracts for the construction of highways under this Act shall prescribe the minimum rates of wages, as predetermined by the State highway department, which contractors shall pay to the different classes of labor, and such minimum rates shall be stated in the advertisement for bids and in proposals or bids which may be submitted. The wage rates so determined shall be a minimum rate for unskilled labor, a minimum rate for labor, intermediate grade, and a minimum rate for skilled labor. The classification of labor employed on highway work into the three classes mentioned shall be in accordance with instructions issued by the Chief of the Bureau of Public Roads.

(6) All contracts for the construction of projects under this Act shall require that the wages of all labor shall be paid in legal tender of the United States. This condition will be considered satisfied if payment is made by a negotiable check, on a solvent bank, which may be readily cashed by the employee in the immediate community for the full amount, without discount or collection charges of any kind.

SEC. 4. To provide for maximum employment during periods of acute unemployment as determined by the Secretary, all contracts for the construction of highways under this Act shall contain stipulations that (except in executive, administrative, and supervisory positions) no individual shall be permitted to work more than 40 hours in any 1 week. This requirement shall be construed : (a) To permit working time lost because of inclement weather or unavoidable delays during the period of employment in any 1 week to be made up in the succeeding week or weeks of the same calendar month; and (b) to permit a limitation of not more than 176 hours of work in any 1 calendar month to be substituted in the contract for the requirement of not more than 40 hours work in any 1 week on projects in localities where a sufficient amount of labor is not available in the immediate vicinity of the work and unemployment has been absorbed in the area of the work. On work located at points so remote and so inaccessible that camps are necessary for the housing and boarding of practically all of the labor employed on the work as determined by a State highway department and approved by the district engineer of the Bureau of Public Roads, there may be substituted for either of the above limitations a stipulation permitting individuals to work not more than 48 hours in any 1 week and not more than 8 hours in any 1 day.

SEC. 5. When deemed necessary by the Chief of the Bureau of Public Roads to give effect to stipulations concerning wages and hours of labor, the specifications for each project shall contain a provision requiring the contractor to promptly furnish to the State highway department copies of a monthly pay roll by calendar months certified under oath by the contractor or his authorized representative. Such copies shall be available for inspection by the Chief of the Bureau of Public Roads or his authorized representative and he may require that copies be furnished him.

REGULATION 11. HIGHWAY-PLANNING PROJECTS

SECTION 1. Wherever legislation applicable to any specific authorization of funds permits the funds to be used for surveys, plans, traffic studies, and engineering investigations of projects for future construction in a State, such planning projects shall be initiated in the same manner as other projects by the submission of a project statement, and the work prosecuted under a project agreement. The project agreement may be modified or reopened to provide for construction. Highway planning projects shall be confined to projects for which State funds are not immediately available for construction and for which Federal funds for construction would be from subsequent apportionment to a State. No part of the cost of highway-planning projects will be paid to any State which restricts employment of engineers on such work to residents of the state.

REGULATION 12. TRAFFIC SIGNS AND SIGNALS

SECTION 1. All signs and traffic-control devices and other protective structures erected on or in connection with highways or structures on which Federal funds are allocated in whole or in part shall be in conformity with such manual of uniform traffic-control devices as may be approved by the Secretary of Agriculture. All traffic-control devices erected on projects for such highways or structures, whether paid for from Federal or other funds, shall be in accordance with such approved manual.

REGULATION 13. ROADSIDE IMPROVEMENTS

SECTION 1. To insure proper treatment of the roadsides and eliminate, insofar as possible, the scars of construction, the Chief of the Bureau of Public Roads shall prescribe the extent to which work of this character may be required as a part of the original construction of a project or to be undertaken at a later date. Such work shall include the selective cutting, pruning, and preservation of existing growth, removal of stumps, the fattening of slopes and rounding of slope intersections, the planting of trees and shrubs, and the construction of footpaths for pedestrians where such construction is justified and necessary as a safety measure.

REGULATION 14. RECORDS AND COST KEEPING

SECTION 1. Such records of the cost of construction, of inspection, of tests, and of maintenance done by or on behalf of the State, shall be kept, by or under the direction of the State highway department, as will enable the State to report, upon the request of the Secretary or his authorized representatives, the amount and nature of the expenditure for these purposes.

SEC. 2. The accounts and records together with all supporting documents shall be open at all times to the inspection of the Secretary or his authorized representatives, and copies thereof shall be furnished when requested.

REGULATION 15. PAYMENTS

SECTION 1. Vouchers, in the form provided by the Secretary and certified as therein prescribed, showing amounts expended on any project and the amount claimed to be due from the Federal Government on account thereof, shall be

submitted by the State highway department to the Bureau of Public Roads, either after completion of construction of the project or, if the Secretary has determined to make payments as the construction progresses, at intervals of not less than one month.

REGULATION 16. SUBMISSION OF DOCUMENTS SECTION 1. Papers and documents required by the Act or these regulations to be submitted to the Secretary may be delivered to the Chief of the Bureau of Public Roads or his authorized representatives and, from the date of such delivery, shall be deemed submitted.

REGULATION 17. MAINTENANCE OF PROJECTS

SECTION 1. All projects constructed under the provisions of this Act shall be maintained by the State except those projects or portions thereof which may be eliminated from the Federal-aid highway system through relocation in connection with further improvement of a project or through a change in the designated highways of such system. If a State is without authority to maintain projects constructed within municipalities or other political subdivisions the State shall submit, in the form prescribed by the Secretary, an agreement with the municipality or other political subdivision for such maintenance.

SEC. 2. Each State highway department shall keep such cost records of maintenance work as the Chief of the Bureau of Public Roads may prescribe and shall report such costs upon his request. If at any time the Chief of the Bureau of Public Roads finds that insufficient funds are being devoted to maintenance work or that improvements in organization and methods of operation are necessary to secure better results, he shall so advise a State and require such remedial action as will accomplish these purposes.

REGULATION 18. PROJECTS THROUGH UNAPPROPRIATED OR UNRESERVED PUBLIC

LANDS, NONTAXABLE INDIAN LANDS, OR OTHER FEDERAL RESERVATIONS OTHER THAN FOREST RESERVATIONS

SECTION 1. The term “main roads” as used in the Act of June 24, 1930 (46 Stat. 805), shall be construed to include sections of the Federal-aid highway system, continuations thereof, and necessary connections between routes thereon.

SEC. 2. Projects for construction under said Act of June 24, 1930, shall be selected and recommended jointly by the district engineer of the Bureau of Public Roads and the State highway department.

SEC. 3. Construction of projects hereunder may be underaken either by the States or by the Federal Government, as may be provided by project agreements entered into between the State highway departments and the Secretary of Agriculture.

SEC. 4. All provisions of regulations 1 to 16 inclusive shall apply to projects hereunder.

REGULATION 19. DIVERSION OF GASOLINE AND MOTOR-VEHICLE TAXES

REDUCTION OF APPORTIONMENT

SECTION 1. As soon as practicable after the approval of these rules and regulations, the Secretary shall determine, as of June 18, 1934, what amounts of the revenues derived from State motor-vehicle registration fees, licenses, gaso line taxes, and other special taxes on motor-vehicle owners and operators in the various States, are required by the laws of each State to be applied to highway purposes, including the retirement of bonds for the payment of which such revenues have been pledged. If he shall find at any time that lesser amounts of such revenues in any State are required by its laws to be applied to such purposes than were required to be so applied by the laws of such State on June 18, 1934, he shall take such action as he may deem necessary to comply with the provisions of section 12 of the Act of June 18, 1934 (48 Stat. 995), by reducing the apportionment of Federal funds to such State by not to exceed one-third of the amount to which it otherwise would be entitled for any fiscal year in which such finding may be made.

SEC. 2.2. In any State which the Secretary shall find is applying the proceeds of the State motor-vehicle registration fees, licenses, gasoline taxes, and other

• Amendment of July 2, 1936.

special taxes on motor-vehicle owners and operators of all kinds to highway purposes, except construction, as defined in section 12 of the Act of June 18, 1934 (48 Stat. 993), and has insufficient balance remaining for construction with which to match all or any part of its Federal aid apportionments for either or both of the fiscal years 1936 and 1937, in accordance with the provisions of the Federal Highway Act of 1921, as amended and supplemented, all or such portion of such apportionments as the Secretary may find the State is unable to match may be expended in such State without being matched with State funds, as provided in Paragraph (d) of section 1 of the Act of June 16, 1936 (Public No. 686, 74th Cong.).

Applications under this section may be submitted by a State highway department through the district engineer of the Bureau of Public Roads on forms provided by that Bureau. A special agreement will be entered into with each State highway department covering projects under this regulation. A certified statement will be required quarterly showing in detail the collections of the taxes enumerated in this section and the disposition of same. This statement will be subject to audit and check against the original records of the State by representatives of the Bureau or Public Roads.

REGULATION 20. APPLICATION OF REGULATIONS

SECTION 1. These regulations shall apply to all provisions of the Act, except the provisions thereof relative to forest roads and trails, shall take effect upon approval, and shall supersede the rules and regulations approved July 22, 1922, and all amendments thereto.

RULES AND REGULATIONS FOR CARRYING OUT THE PROVISIONS

OF TITLE II-PUBLIC WORKS AND CONSTRUCTION PROJECTS NATIONAL INDUSTRIAL RECOVERY ACT AND THE ACT OF JUNE 18, 1934 (H. R. 8781) FOR CONSTRUCTING HIGHWAYS AND RELATED PROJECTS IN ACCORDANCE WITH PROVISIONS OF THE FEDERAL HIGHWAY ACT [Approved by the Securetary of Agriculture_July 7, 1934, and by the Special Board for

Public Works July 13, 1934)

DEFINITIONS SECTION 1. For the purposes of these rules and regulations, the following definitions shall be controlling:

The term "Act” shall mean those provisions of title II—Public Works and Construction Projects—of the National Industrial Recovery Act of June 16, 1933 (48 Stat. 200), and the amendatory or supplementary act of June 18, 1934 (H. R. 8781), which provide for the emergency construction of public highways and related projects in accordance with the provisions of the Federal Highway Act.

The term "State” as used herein shall include the Territory of Hawaii and the District of Columbia.

The term “Secretary” shall mean the Secretary of Agriculture of the United States.

The term “public works highway funds" shall mean the $400,000,000 of Federal funds authorized by section 204 of the act of June 16, 1933 (48 Stat. 200), and the $200,000,000 authorized by section 1 of the act of June 18, 1934 (H. R. 8781), and apportioned to the several State highway departments for the construction of public highways and related projects on the Federal-aid highway system and on extensions thereof into and through municipalities and on secondary or feeder roads, in accordance with the provisions of the Federal Highway Act.

Projects located on the Federal-aid highway systems outside of municipalities involving the use of such funds shall be designated “U. S. Public Works Highway Project No. NRH

Projects located on extensions of the Federal-aid highway system into and through municipalities involving the use of such funds shall be designated “U. S. Public Works Highway Project No. NRM

Projects located on secondary or feeder roads involving the use of such funds shall be designated “U. S. Public Works Highway Project No. NRS

Signs displayed on any such project for the purpose of its identification by firms or individuals to whom any contract for its construction is awarded shall refer to the project by the appropriate foregoing designation.

The term “apportionment” refers to the amounts which have been placed to the credit of the individual States by the Secretary's certificates of apportionment of June 23, 1933, and June 19, 1934, which certificates are hereby made a part of these rules and regulations.

“Secondary or feeder roads" shall include farm-to-market roads, rural-freedelivery roads, and public-school-bus routes, and shall be defined as roads which are not now included in the approved system of Federal-aid highways but which are either part of the State highway system or are important local highways leading to shipping points, or which will permit the coordination or extension of existing transportation facilities, including highway, rail, air, and water.

INITIATION OF PROJECTS

SEC. 2. All projects under this act shall be initiated by the States and submitted in the same manner as other Federal-aid projects, and all such projects shall be subject to all provisions of the rules and regulations of the Secretary of Agriculture for administering the Federal Highway Act, as heretofore promulgated, except such provisions as are in conflict with these rules and regulations.

APPLICATION OF FUNDS TO PROJECTS

SEC. 3. (a) Of the funds apportioned to any State under said act of June 16, 1933, not more than 50 percent shall be applied to projects on the Federal-aid highway system outside of the corporate limits of municipalities; not less than 25 percent of such funds shall be applied to projects on extensions of the Federal-aid highway system into and through municipalities; and not more than 25 percent of such funds shall be applied to secondary or feeder roads until provision has been made for the satisfactory completion of at least 90 percent of the initial limiting Federal-aid highway system in such State. Upon a proper showing by any State that either all needed improvements on extensions of the Federal-aid highway system into and through municipalities can be completed with an expenditure less than 25 percent of the State's apportionment, or that municipal authorities are unable or unwilling to obtain the necessary rights-of-way for needed improvements, or for other reasons, the Secretary may revise the above percentages with reference to such State.

(6) Of the funds apportioned to any State under said act of June 18, 1934, not more than 50 percent shall be applied to projects on the Federal-aid highway system outside of the corporate limits of municipalities; not less than 25 percent of such funds shall be applied to projects on extensions of the Federal-aid highway system into and through municipalities; and not less than 25 percent of such funds shall be applied to secondary or feeder roads. In States where the mileage of the State highway system is a small percentage of the total highway mileage of the State, the improvement of secondary or feeder roads shall not be confined entirely to the designated State highway system. In States where unimproved or inadequate sections exist on principal routes of highway travel which are on the Federal-aid highway system the Secretary, upon request and a satisfactory showing of such condition by the State highway department concerned, or for other reasons satisfactory to him, may approve a less percentage of the apportionment of such State for expenditure on secondary or feeder roads, with a corresponding increase in the percentage for expenditure on the Federal-aid highway system. Any such request filed by a State highway department shall be supported by the following:

(1) A statement of the status of Federal-aid system as to types of improvement. This statement shall include a showing as to the percentage of the system that is improved to a standard consistent with the lowest average maintenance costs under existing and immediately prospective traffic.

(2) A statement of the status of improvement of the roads on the State system which are not on the Federal-aid system, together with the annual expenditures thereon now being made for new construction and for maintenance.

(3) A statement of the status of local roads under the jurisdiction of local bodies, together with the amount of funds from State and all other taxes, including gasoline, oil, and motor-vehicle fees, placed under the jurisdiction of local authorities for expenditure on roads.

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