(a) Noncredit remedial programs operated by community colleges can be included for State aid if the sponsor contributes its share of operating costs and each program meets the following criterion: Instruction concerned with diagnosing, correcting or improving such basic skills as oral and written communications, reading, analytical concepts and general study habits and patterns, to overcome in part or in whole any particular marked deficiency which interferes with a student's ability to pursue an educational objective effectively. State financial assistance shall be allowed for all noncredit remedial programs, which programs may, as a prerequisite to enrollment, require specific educational requirements heretofore or presently undertaken by community colleges.

(b) Fees for noncredit courses shall not exceed the tuition for credit-bearing courses having an equivalent number of credit hours.

(c) The following courses are specifically not eligible for State aid: avocational, recreational, and social group courses.

(d) The local operating budget shall indicate whether such noncredit courses are offered. Additional procedures for periodic review of all noncredit courses to determine eligibility for State aid shall be in accord with guidelines developed and issued by the chancellor or designee.

(e) All courses and programs not eligible for State aid shall be in the aggregate self- sustaining. The revenues collectively received for such courses and programs must be adequate to cover the direct costs of all the courses and programs including faculty salaries and fringe benefits, the costs of supplies and materials consumed in the courses and programs, the costs of equipment used only for the programs and other expenses directly incurred by the courses and programs. Each individual course or program need not be operated on a self-sustaining basis.

(f) Fees for noncredit courses which are not eligible for State aid and which have no practical credit equivalency shall be determined by policy of the local trustees or their designee.

(g) In order to receive State financial assistance for noncredit courses, each community college must submit to the chancellor, or designee, a request for funding which, at a minimum, shall contain the name of any co-sponsoring institutional group or agency, a description of the college's control of operation of the course in the areas of fiscal administration, selection of faculty and course development, a description of the course or program to be offered, the major purpose of the course or program as it relates to the mission of the college, the projected full-time equivalent student or headcount enrollment of the proposed course or program, and such other data as required by the chancellor, or designee, on forms designated for this purpose.

(h) Each community college shall maintain a record of costs and revenues, and other descriptive data in accordance with guidelines issued by the chancellor, or designee, for its total noncredit program in order to be eligible for State financial assistance for such courses. Each community college shall submit such records to the chancellor, or designee, at the time and in the manner established by the chancellor, or designee.