12 2 STA T . 12 76PUBLIC LA W 11 0– 2 34—M A Y 22 , 200 8section103 o f t h e Agr ic ul tur a l R esearch ,Ex ten - sion, an d Education Refor m Actof1 9 9 8(7U.S . C . 7 6 13 ); and ( I II) a w ard grants on the b asis of merit, q ualit y , and rele v ance to advancing the p urposes of this section. (ii) PRIO RI TY . — A sun grant center or subcenter shall give a higher priority to programs that are con- sistent with the plan approved by the Secretary under subsection (d). (iii) TE R M .—A grant awarded by a sun grant center or subcenter shall have a term that does not exceed 5 years. (iv) MA T CH I NGFU N DS RE Q UIRED.— (I) IN GENERA L .—Except as provided in sub- clauses (II) and (III), as a condition of receiving a grant under this paragraph, the sun grant center or subcenter shall require that not less than 2 0 percent of the cost of an activity described in subparagraph ( B ) be matched with funds, including in- k ind contributions, from a non- F ed- eral source. (II) E X CLUSION.—Subclause (I) shall not apply to fundamental research (as defined in subsection (f)(1) of section 251 of the D epartment of Agri- culture Reorgani z ation Act of 199 4 (7 U.S.C. 6971) (as added by section 7511(a)(4)). (III) REDUCTION.—The sun grant center or subcenter may reduce or eliminate the require- ment for non-Federal funds under subclause (I) for applied research (as defined in subsection (f)(1) of section 251 of the Department of Agriculture Reorganization Act of 1994 (7 U.S.C. 6971) (as added by section 7511(a)(4)) if the sun grant center or subcenter determines that the reduction is nec- essary and appropriate pursuant to guidance issued by the Secretary. (v) BUILDINGS AND FACILITIES.—Funds made avail- able for grants shall not be used for the construction of a new building or facility or the acquisition, expan- sion, remodeling, or alteration of an existing building or facility (including site grading and improvement and architect fees). (vi) L IMITATION ON INDIRECT COSTS.—A sun grant center or subcenter may not recover the indirect costs of making grants under subparagraph (A). (2) ADMINISTRATI V EEX P ENSES.—A sun grant center or sub- center may use up to 4 percent of the funds described in subsection (b) to pay administrative expenses incurred in car- rying out paragraph (1). (3) RESEARCH, EXTENSION AND EDUCATIONAL ACTIVITIES.— The sun grant centers and subcenter shall use the remainder of the funds described in subsection (b) to conduct, in a manner consistent with the purposes described in subsection (a), multi- institutional and multistate— (A) research, extension, and educational programs on technology development; and
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