Participating libraries, both public and nonpublic, shall conform to the following requirements:
(a) Reporting. To obtain reimbursement a library shall provide by the deadline reporting date, an required reports of its interlibrary loan transactions in an established form and manner determined by the Board for the period required.
(b) Audit. For audit purposes, a record of the interlibrary loan transactions must be maintained for four years.
(c) Fees. A library providing an item for interlibrary loan may not collect a handling fee on a transaction for which that library claims an interlibrary loan reimbursement under provisions of this article. A photocopy fee, exclusive of photocopy handling charge, may be collected.
(d) Direct Loan Availability. Participating libraries shall make maximum use of available bibliographic access tools to refer users to borrow directly from nearby libraries where requested material is easily available, rather than to process an interlibrary loan.
(e) Responsibility for Borrowed Materials. The borrowing library shall be responsible for all items it borrows, and if such item is lost or damaged by the library or its users, the borrowing library may be required by the lending library to make restitution for the item.
(f) Adherence to Standards. All participating libraries shall attempt to follow the standards described in the "California Library Services Act Interlibrary Loan Standards," which is hereby incorporated by reference. The State Board may withhold reimbursements to libraries which continually fail to meet the standards of performance.