[Federal Register Volume 60, Number 172 (Wednesday, September 6, 1995)]
[Rules and Regulations]
[Pages 46492-46495]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-21998]




[[Page 46491]]

_______________________________________________________________________

Part V





Department of Education





_______________________________________________________________________



34 CFR Parts 74, 75, 76, and 81



Administration of Grants to Institutions of Higher Education, Hospitals 
and Nonprofit Organizations; Direct Grant Programs; State-Administered 
Programs; and General Provisions Act Enforcement: Final Rule

  Federal Register / Vol. 60, No. 172 / Wednesday, September 6, 1995 / 
Rules and Regulations   

[[Page 46492]]


DEPARTMENT OF EDUCATION

34 CFR Parts 74, 75, 76, and 81

RIN 1880-AA64


Administration of Grants to Institutions of Higher Education, 
Hospitals and Nonprofit Organizations; Direct Grant Programs; State-
Administered Programs; and General Provisions Act--Enforcement

AGENCY: Department of Education.

ACTION: Final regulations.

-----------------------------------------------------------------------

SUMMARY: The Secretary makes technical amendments to the Education 
Department General Administrative Regulations (EDGAR) to implement 
amendments to the General Education Provisions Act (GEPA) made by the 
Improving America's Schools Act (IASA). The provisions will diminish 
the paperwork burden for recipients, permit the Secretary to approve 
State plans for a period longer than three years, authorize the 
Secretary to take actions other than termination actions if, after a 
hearing, the Secretary determines that a State plan is not 
substantially approvable, improve the procedures and requirements 
governing hearings for the recovery of funds, implement other statutory 
requirements and make other technical changes to EDGAR.

EFFECTIVE DATE: These regulations take effect October 6, 1995.

FOR FURTHER INFORMATION CONTACT: Ronelle Holloman, U.S. Department of 
Education, 600 Independence Avenue, SW., Room 3636, ROB-3, Washington, 
DC 20202-4700. Telephone: (202) 205-3501. Individuals who use a 
telecommunications device for the deaf (TDD) may call the Federal 
Information Relay Service (FIRS) at 1-800-877-8339 between 8 a.m. and 8 
p.m., Eastern time, Monday through Friday.

SUPPLEMENTARY INFORMATION: The Secretary is amending sections in 34 CFR 
Parts 74, 75, 76, and 81 to implement the Improving America's Schools 
Act of 1994 (Pub. L. 103-382), enacted October 20, 1994, and to make 
other technical changes. The Improving America's Schools Act extends 
the authorization for programs under the Elementary and Secondary 
Education Act of 1965 and, as it relates to these amendments, 
diminishes paperwork burden for educators and clarifies procedures 
handled by the Office of Administrative Law Judges. Other technical 
changes to EDGAR are also being made.

Section-by-Section Analysis

    Section 74.53 establishes record retention and access requirements 
for discretionary grants and cooperative agreements awarded on or after 
October 1, 1994. The section is amended by removing ``five'' and adding 
in its place ``three'' in all appropriate places to reflect IASA 
removal of the GEPA requirement that recipients under applicable 
programs maintain records for five years. In addition, the remaining 
paragraphs are revised by removing ``5'' wherever it appears and adding 
in its place ``3''.
    Section 75.125 is amended by revising the heading and authority 
citation to eliminate reference to the Joint Funding Simplification Act 
which no longer exists.
    Section 75.734 is removed because the IASA amended GEPA to remove 
the former requirement that recipients under applicable programs 
maintain records for five years. The removal of Sec. 75.734 allows 
recipients of discretionary grant programs to rely on the rules in 
Parts 74 and 80, which require that records be maintained for only 
three years.
    Section 76.101 is amended to reflect the new section number for the 
section of the General Education provisions Act (GEPA) that specifies 
the content of the single State application.
    Section 76.103 is revised to change the effective period for a 
state plan from a three-year State plan to give the Secretary the 
flexibility to establish a multi-year State plan period. Under the 
amended regulation, the Secretary could establish a State plan period 
for more than three years.
    Section 76.301 is amended to reflect the new section number for the 
section of GEPA that authorizes the single State application.
    Section 76.401 specifies procedures that States must follow in 
disapproving local applications and specifies actions the Secretary may 
take if it's determined that a State did not comply with any of the 
provisions in Sec. 76.401. The section is amended by revising paragraph 
(d)(8) to include language that will allow the Secretary additional 
measures to achieve compliance other than immediate termination of 
assistance to the State.
    Section 76.734 is removed because the IASA amended GEPA to remove 
the former requirement that recipients maintain records for five years. 
The removal of Sec. 76.734 allows recipients under state administered 
programs to rely on the rules in Parts 74 and 80, which require that 
records be maintained for only three years.
    Section 81.24 is amended to implement section 250(a)(1) of the IASA 
by revising Sec. 81.24(b)(1) to require the Secretary, in issuing a 
notice of a preliminary departmental decision, to establish a prima 
facie case.
    Section 81.27 is amended to implement section 250(a)(1) of the 
IASA, to allow a recipient 60 days to file an application for review of 
a preliminary departmental decision in place of the 30 days allowed in 
the current requirement.
    Section 81.33 is amended to implement section 250(a)(3)(B) of the 
IASA so that, during the Secretary's review of a decision of the Office 
of Administrative Law Judges, ex parte communication between employees 
of the Secretary's office and individuals representing the Department 
or the recipient are prohibited.

Paperwork Reduction Act of 1980

    These regulations have been examined under the Paperwork Reduction 
Act of 1980 and have been found to contain no information collection 
requirements.
Intergovernmental Review

    Some programs affected by these regulations are subject to the 
requirements of Executive Order 12372 and the regulations in 34 CFR 
Part 79. The objective of the Executive Order is to foster an 
intergovernmental partnership and a strengthened federalism by relying 
on processes developed by State and local governments for coordination 
and review of proposed Federal financial assistance.
    In accordance with the order, this document is intended to provide 
early notification of the Department's specific plans and actions for 
these programs.

Assessment of Educational Impact

    The Secretary has determined that this document does not require 
transmission of information that is being gathered by or is available 
from any other agency or authority of the United States.

Waiver of Proposed Rulemaking

    It is the practice of the Secretary to offer interested parties the 
opportunity to comment on proposed regulations in accordance with the 
Administrative Procedure Act (5 U.S.C. 553). However, since these 
changes merely incorporate statutory amendments into the regulations 
and do not implement policy changes over which the Secretary has 
discretion, public comment could have no effect. Therefore, the 
Secretary has determined pursuant to 5 U.S.C. 

[[Page 46493]]
553(b)(B) that public comment on these regulations is unnecessary and 
contrary to the public interest.

List of Subjects

34 CFR Part 74

    Administrative practice and procedure, Education Department, Grant 
programs-education, Grant Administration, Hospitals, Institutions of 
higher education, Non-profit organizations, Reporting and recordkeeping 
requirements.

34 CFR Part 75

    Education Department, Grant programs-education, Grant 
administration, Incorporation by reference.

34 CFR Part 76

    Education Department, Grant programs-education, Grant 
administration, Intergovernmental relations, State-administered 
programs.

34 CFR Part 81

    Enforcement, General Education Provisions Act.

    Dated: August 30, 1995.
Richard W. Riley,
Secretary of Education.
(Catalog of Federal Domestic Assistance Number does not apply.)

    The Secretary amends Parts 74, 75, 76, and 81 of Title 34 of the 
Code of Federal Regulations as follows:

PART 74--ADMINISTRATION OF GRANTS AND AGREEMENTS WITH INSTITUTIONS 
OF HIGHER EDUCATION, HOSPITALS AND OTHER NON-PROFIT ORGANIZATIONS

    1. The authority citation for Part 74 is revised to read as 
follows:

    Authority: 20 U.S.C. 1221e-3 and 3474; OMB Circular A-110, 
unless otherwise noted.

    2. In section 74.53, the introduction to paragraph (b) is amended 
by removing ``five'' and adding in its place, ``three'', in paragraph 
(b) (1) and (3) and (g) (1) and (2) removing ``5-'' and adding, in its 
place, ``3-''; in paragraph (b)(3) by removing ``5'' and adding in its 
place ``3''; and by revising the authority citation to read as follows:


Sec. 74.53  Qualifications and exceptions

* * * * *
(Authority: 20 U.S.C. 1221e-3 and 3474; OMB Circular A-110)

    3. The authority citation for sections 74.1, 74.2, 74.3, 74.4, 
74.5, 74.10, 74.11, 74.12, 74.13, 74.14, 74.15, 74.16, 74.17, 74.20, 
74.21, 74.22, 74.23, 74.24, 74.25, 74.26, 74.27, 74.28, 74.30, 
74.31, 74.32, 74.33, 74.34, 74.35, 74.36, 74.37, 74.40, 74.41, 
74.42, 74.43, 74.44, 74.45, 74.46, 74.47, 74.48, 74.50, 74.51, 
74.52, 74.60, 74.61, 74.62, 74.70, 74.71, 74.72, and 74.73 and 
Appendix A to Part 74 is revised to read as follows:

(Authority: 20 U.S.C. 1221e-3, 3474; OMB Circular A-110)

PART 75--DIRECT GRANT PROGRAMS

    4. The authority citation for Part 75 continues to read as follows:

    Authority: 20 U.S.C. 1221e-3 and 3474, unless otherwise noted.

    5. Section 75.125 is amended by revising the heading and the 
authority citation to read as follows:


Sec. 75.125  Submit a separate application to each program.

* * * * *
(Authority: 20 U.S.C. 1221e-3 and 3474)


Sec. 75.734  [Removed]

    6. Section 75.734 and the note and cross-reference following the 
section are removed.
    7. Section 75.740 is amended in paragraph (a) by removing the 
number ``438'' and adding in its place the number ``444'' and in 
paragraph (b) by removing the number ``439'' and adding in its place 
the number ``445'' and revising the authority citation to read as 
follows:


Sec. 75.740  Protection of and access to student records; student 
rights in research, experimental programs, and testing.

* * * * *
(Authority: 20 U.S.C. 1221e-3, 1232g, 1232h, and 3474)

    8. The authority citation for sections 75.1, 75.2, 75.4, 75.50, 
75.51, 75.60, 75.61, 75.62, 75.100, 75.101, 75.102, 75.103, 75.104, 
75.105, 75.109, 75.112, 75.117, 75.119, 75.125, 75.126, 75.127, 
75.128, 75.129, 75.155, 75.156, 75.158, 75.159, 75.190, 75.191, 
75.192, 75.200, 75.201, 75.210, 75.215, 75.216, 75.217, 75.218, 
75.219, 75.220, 75.222, 75.230, 75.231, 75.232, 75.233, 75.234, 
75.235, 75.236, 75.250, 75.251, 75.253, 75.260, 75.261, 75.262, 
75.500, 75.511, 75.515, 75.516, 75.517, 75.519, 75.524, 75.525, 
75.530, 75.531, 75.532, 75.533, 75.534, 75.560, 75.561, 75.562, 
75.563, 75.564, 75.590, 75.591, 75.592, 75.600, 75.601, 75.602, 
75.603, 75.604, 75.605, 75.606, 75.607. 75.608, 75.609, 75.610, 
75.611, 75.612, 75.613, 75.614, 75.615, 75.618, 75.620, 75.621, 
75.622, 75.626, 75.650, 75.681, 75.682, 75.683, 75.700, 75.701, 
75.702, 75.703, 75.707, 75.708, 75.720, 75.730, 75.731, 75.732, 
75.900, 75.901, 75.903, and 75.910 is revised to read as follows:

(Authority: 20 U.S.C. 1221e-3 and 3474)

    9. The authority citation for section 75.580 is revised to read as 
follows:

(Authority: 20 U.S.C. 1221e-3, 2890, and 3474)

    10. The authority citation for section 75.616 is revised to read as 
follows:

(Authority: 20 U.S.C. 1221e-3 and 3474, 42 U.S.C. 8373(b), and E.O. 
12185)

    11. The authority citation for section 75.617 is revised to read as 
follows:

(Authority: 20 U.S.C. 1221e-3 and 3474, 31 U.S.C. 3504, 3505)
PART 76--STATE-ADMINISTERED PROGRAMS

    12. The authority citation for part 76 continues to read as 
follows:

    Authority: 20 U.S.C. 1221e-3, 3474, and 6511(a) unless otherwise 
noted.

    13. Section 76.101 is amended by removing ``Section 435'' and 
adding, in its place, ``Section 441'' and the authority citation is 
revised to read as follows:

(Authority: 20 U.S.C. 1221e-3, 1232d, and 3474)

    14. Section 76.103 is amended by revising the heading and paragraph 
(a); and by removing ``three-year'' in paragraph (b) and adding, in its 
place, ``multi-year'' to read as follows:


Sec. 76.103  Multi-year State plans.

    (a) Beginning with fiscal year 1996, each State plan will be 
effective for a period of more than one fiscal year, to be determined 
by the Secretary or by regulations.
* * * * *
(Authority: 20 U.S.C. 1221e-3, 1231g(a), and 3474)

    15. Section 76.301 is amended by removing ``Section 436'' and 
adding, in its place, ``Section 442'' and the authority citation is 
revised to read as follows:

(Authority: 20 U.S.C. 1221e-3, 1232d, and 3474)

    16. Section 76.401 is amended by revising paragraph (d)(8) and the 
authority citation to read as follows:


Sec. 76.401  Disapproval of an application--opportunity for a hearing.

* * * * *
    (d) * * *
    (8) If a State educational agency does not comply with any 
provision of this section, or with any order of the Secretary under 
this section, the Secretary terminates all assistance to the State 
educational agency under the applicable program or issues such other 
orders as the Secretary deems appropriate to achieve compliance.
* * * * *
(Authority: 20 U.S.C. 1221e-3, 1231b-2, 3474, and 6511(a)) 

[[Page 46494]]



Sec. 76.734  [Removed]

    17. Section 76.734 and the note following the section are removed.
    18. The authority citation for Sec. 76.1 is revised to read as 
follows:

(Authority: 20 U.S.C. 1221e-3, 3474, and 6511(a))

    19. The authority citation for Secs. 76.2, 76.50, 76.51, 76.500, 
76.532, 76.533, 76.534, 76.563, 76.600, 76.703, 76.704, and 76.707 is 
revised to read as follows:

(Authority: 20 U.S.C. 1221e-3, 3474, and 6511(a))

    20. The authority citation for Secs. 76.100, 76.102, 76.104, 
76.106, 76.125, 76.141, 76.142, 76.201, 76.202, 76.235, 76.261, 76.300, 
76.302, 76.303, 76.400, 76.650, 76.651, 76.652, 76.653, 76.654, 76.655, 
76.656, 76.657, 76.658, 76.659, 76.660, 76.661, 76.662, and 76.770 is 
revised to read as follows:

(Authority: 20 U.S.C. 1221e-3 and 3474)

    21. The authority citation for Sec. 76.140 is revised to read as 
follows:

(Authority: 20 U.S.C. 1221e-3, 1231g(a), and 3474)

    22. The authority citation for Sec. 76.304 is revised to read as 
follows:

(Authority: 20 U.S.C. 1221e-3, 1232e, and 3474)

    23. The authority citation for Secs. 76.530, 76.560, 76.561, 
76.681, 76.683, 76.700, 76.701, 76.702, 76.720, 76.722, 76.731, 76.760, 
76.761, and 76.902 is revised to read as follows:

(Authority: 20 U.S.C. 1221e-3, 3474, and 6511(a))

    24. The authority citation for Sec. 76.580 is revised to read as 
follows:

(Authority: 20 U.S.C. 1221e-3, 2890, and 3474)

    25. The authority citation for Sec. 76.591 is revised to read as 
follows:

(Authority: 20 U.S.C. 1221e-3, 1226c, 1231a, 3474, and 6511(a))

    26. The authority citation for Sec. 76.677 is revised to read as 
follows:

(Authority: 20 U.S.C. 1221e-3, 2727(b)(3)(D), 2972(f), and 3474)

    27. The authority citation for Sec. 76.705 is revised to read as 
follows:

(Authority: 20 U.S.C. 1221e-3, 1225(b), and 3474)

    28. The authority citation for Sec. 76.740 is revised to read as 
follows:

(Authority: 20 U.S.C. 1221e-3, 1232g, 1232h, 3474, and 6511(a))

PART 81--GENERAL EDUCATION PROVISIONS ACT--ENFORCEMENT

    29. The authority citation for part 81 is revised to read as 
follows:

    Authority: 20 U.S.C. 1221e-3, 1234-1234i, and 3474(a), unless 
otherwise noted.

    30. Section 81.24 is amended by revising paragraph (b)(1) and the 
authority citation to read as follows:


Sec. 81.34  Notice of a disallowance decision.

* * * * *
    (b)(1) The notice must establish a prima facie case for the 
recovery of funds, including an analysis reflecting the value of the 
program services actually obtained in a determination of harm to the 
Federal interest.
* * * * *
(Authority: 20 U.S.C. 1221e-3, 1234(f)(1), 1234a(a), and 3474(a))

    31. Section 81.37 is amended by removing ``30'' in paragraph (b) 
and adding, in its place, ``60'' and revising the authority citation to 
read as follows:

(Authority: 20 U.S.C. 1221e-3, 1234(f)(1), 1234a(b)(1), and 3474(a))

    32. Section 81.43 is amended by redesignating paragraph (a) as 
paragraph (a)(1); adding a new paragraph (a)(2); and revising the 
authority citation to read as follows:


Sec. 81.43  Review by the Secretary.

    (a)(1) * * *
    (2) During the Secretary's review of the initial decision there 
shall not be any ex parte contact between the Secretary and individuals 
representing the Department or the recipient.
* * * * *
(Authority: 5 U.S.C. 557(b); 20 U.S.C. 1221e-3, 1234(f)(1), 
1234a(d), and 3474(a))

    33. The authority citation for sections 81.1, 81.7, 81.8, 81.11, 
81.12, 81.17, and 81.19 is revised to read as follows:

(Authority: 20 U.S.C. 1221e-3, 1234(f)(1), and 3474(a))

    34. The authority citation for section 81.2 is revised to read as 
follows:

(Authority: 20 U.S.C. 1221e-3, 1234 (b), (c), and (f)(1), 
1234a(a)(1), 1234i, and 3474(a))

    35. The authority citation for section 81.4 is revised to read as 
follows:

(Authority: 20 U.S.C. 1221e-3, 1234 (b) and (c), and 3474(a))

    36. The authority citation for section 81.5 is revised to read as 
follows:

(Authority: 5 U.S.C. 556(b); 20 U.S.C. 1221e-3, 1234 (d), (f)(1) and 
(g)(1), and 3474(a))

    37. The authority citation for section 81.6 is revised to read as 
follows:

(Authority: 5 U.S.C. 556(d); 20 U.S.C. 1221e-3, 1234(f)(1), and 
3474)

    38. The authority citation for section 81.9 is revised to read as 
follows:

(Authority: 5 U.S.C. 554(b); 20 U.S.C. 1221e-3, 1234(f)(1), and 
3474(a))

    39. The authority citation for section 81.10 is revised to read as 
follows:

(Authority: 5 U.S.C. 554(d)(1), 557(d)(1)(A); 20 U.S.C. 1221e-3, 
1234(f)(1), and 3474(a))

    40. The authority citation for section 81.13 is revised to read as 
follows:

(Authority: 20 U.S.C. 1221e-3, 1234 (f)(1) and (h), and 3474(a))

    41. The authority citation for section 81.14 is revised to read as 
follows:

(Authority: 20 U.S.C. 554(c)(1), 1221e-3, 1234(f)(1), and 3474(a))

    42. The authority citation for section 81.15 is revised to read as 
follows:

(Authority: 5 U.S.C. 556 (d) and (e); 20 U.S.C. 1221e-3, 1234(f)(1), 
and 3474(a))

    43. The authority citation for section 81.21 is revised to read as 
follows:

(Authority: 20 U.S.C. 1221e-3, 1234(f)(1), 1234a(k), 1234b (a) and 
(b), and 3474(a))

    44. The authority citation for section 81.22 is revised to read as 
follows:

(Authority: 20 U.S.C. 1221e-3, 1234(f)(1), 1234b(a), and 3474(a))

    45. The authority citation for section 81.23 is revised to read as 
follows:

(Authority: 20 U.S.C. 1221e-3, 1234(f)(1), 1234b(b), and 3474(a))

    46. The authority citation for section 81.24 is revised to read as 
follows:

(Authority: 20 U.S.C. 1221e-3, 1234(f)(1), 1234a(a), and 3474(a))

    47. The authority citation for section 81.25 is revised to read as 
follows:

(Authority: 20 U.S.C. 1221e-3, 1234(f)(1), 1234a(j), and 3474(a); 31 
U.S.C. 3711)

    48. The authority citation for section 81.26 is revised to read as 
follows:

(Authority: 20 U.S.C. 1221e-3, 1234(f)(1), 1234a (j), and 3474(a))

    49. The authority citation for section 81.27 is revised to read as 
follows:

(Authority: 20 U.S.C. 1221e-3, 1234(f)(1), 1234a(b)(1), and 3474(a))

    50. The authority citation for section 81.28 is revised to read as 
follows:

(Authority: 20 U.S.C. 1221e-3, 1234 (e) and (f)(1), 1234a(b), and 
3474(a))

    51. The authority citation for section 81.29 is revised to read as 
follows:

(Authority: 5 U.S.C. 556(d); 20 U.S.C. 1221e-3, 1234(f)(1), 
1234a(c), and 3474(a))

    52. The authority citation for section 81.30 is revised to read as 
follows:

(Authority: 20 U.S.C. 1221e-3, 1234(f)(1), 1234a(b)(3), 1234b(b)(1), 
and 3474(a))

    53. The authority citation for section 81.31 is revised to read as 
follows:

(Authority: 5 U.S.C. 557(c); 20 U.S.C. 1221e-3, 1234(f)(1), and 
3474(a))


[[Page 46495]]

    54. The authority citation for section 81.32 is revised to read as 
follows:

(Authority: 20 U.S.C. 1221e-3, 1234(f)(1), 1234a(e), and 3474(a))

    55. The authority citation for section 81.33 is revised to read as 
follows:

(Authority: 5 U.S.C. 557(b); 20 U.S.C. 1221e-3, 1234(f)(1), 
1234a(d), and 3474(a))

    56. The authority citation for section 81.34 is revised to read as 
follows:

(Authority: 20 U.S.C. 1221e-3, 1234(f)(1), 1234a(g), and 3474(a))

    57. The authority citation for the appendix to Part 81 is revised 
to read as follows:

(Authority: 20 U.S.C. 1221e-3, 1234(f)(1), 1234b(a), and 3474(a))

[FR Doc. 95-21998 Filed 9-5-95; 8:45 am]
BILLING CODE 4000-01-P