[Federal Register Volume 60, Number 182 (Wednesday, September 20, 1995)]
[Proposed Rules]
[Pages 48844-48845]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-23301]




[[Page 48843]]

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Part VI





Department of Education





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34 CFR Part 75



Direct Grant Programs; Proposed Rule

  Federal Register / Vol. 60, No. 182 / Wednesday, September 20, 1995 / 
Proposed Rules  

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DEPARTMENT OF EDUCATION

34 CFR Part 75

RIN 1880-AA61


Direct Grant Programs

AGENCY: Department of Education.

ACTION: Notice of proposed rulemaking.

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SUMMARY: The Secretary proposes to amend the Education Department 
General Administrative Regulations (EDGAR) governing the deadline date 
for submitting discretionary grant award applications and the selection 
of applications for new grants. These amendments are in response to a 
National Performance Review recommendation to streamline and improve 
the Department of Education's discretionary grants award process. The 
amendments would change the way the Department interprets the deadline 
date for receipt of discretionary grant applications and also expand 
the bases for rejecting applications for new grants to include 
consideration of a recipient's previous performance under any 
Department of Education grant program as well as its failure to submit 
a final performance report or its submission of a report of 
unacceptable quality. These amendments are expected to reduce the 
processing time of discretionary grants, provide at least as much time 
for applicants to prepare their applications as they have now, improve 
the quality of final performance reports and increase the ability of 
the Department to ensure that qualified applicants receive grants.

DATES: Comments must be received on or before November 20, 1995.

ADDRESSES: All comments concerning these proposed regulations should be 
addressed to Mary P. Liggett, Grants and Contracts Service, U.S. 
Department of Education, 600 Independence Avenue, S.W., Room 3636, ROB-
3, Washington, D.C. 20202-4700. Comments may also be sent through 
Internet to Dead__L[email protected].

FOR FURTHER INFORMATION CONTACT: Ronelle Holloman, U.S. Department of 
Education, 600 Independence Avenue, S.W., Room 3636, ROB-3, Washington, 
D.C. 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: In December 1993 the National Performance 
Review (NPR) issued its Accompanying Report for the Department of 
Education. The Accompanying Report included recommendations to 
streamline and improve the Department of Education's discretionary 
grants award process. One of the areas identified as a concern was the 
grant application review process. The discretionary grants process, 
including proposal preparation time, takes approximately 26 weeks. Of 
these 26 weeks, six to eight weeks are allowed for the grant applicant 
to develop a proposal. The remaining time is used by the Department to 
process and award discretionary grants. Under the current rule, 
applications must be postmarked or hand delivered to the Department by 
the deadline date. The NPR recommended the Department change this rule 
so that all applications must be received in the Department by the 
deadline date, as is already the case for contract proposals, unless 
certain circumstances exist.
    Consistent with the governmentwide requirement for contracts, there 
will be certain reasonable exceptions to this standard. For instance, 
under this proposed regulation, a grant application may be accepted 
after the deadline if it carries a legible proof-of-mailing date 
assigned by the U.S. Postal Service or a commercial carrier, which 
shows the application was mailed not later than the fifth calendar day 
(for applications sent by mail) or the second calendar day (for 
applications sent by commercial carrier) before the date specified for 
receipt of applications.
    The new regulation would require an applicant to send its 
application by mail or commercial carrier to the Department earlier 
than is now required. However, the Department would add the review time 
saved by the new procedures to the time that applicants have to prepare 
applications by increasing the time between publication of the program 
announcement and the deadline date.
    The NPR report also identified the failure to receive final 
performance reports once Federal funds are spent as a priority issue to 
be addressed in the grant process. The final performance report is due 
within 90 days after the completion of a grant and provides the 
Department the opportunity to review a project in its entirety for its 
strengths and accomplishments. Additionally, the final step in managing 
a grant, `grant closeout,' cannot begin without the final report. The 
Department begins to officially close out a grant after the expiration 
or termination of the grant. During closeout, the Department determines 
whether all required work of a grant project has been completed and 
Federal funds have been properly accounted for. In addition to 
providing the Department with conclusive information about the 
achievements of a project, these missing performance reports contain 
valuable information on ways to raise education standards and further 
improve education. These reports, if received, could be disseminated 
and successful project activities replicated.
    The recommendation of the NPR is to amend the regulations to allow 
the Secretary of Education, when making future funding decisions, to 
consider a recipient's past performance under any Department program, 
including the failure to submit a final performance report or the 
submission of a report of unacceptable quality. Currently, the 
Department can only consider an applicant's performance under the 
program from which it is seeking a new grant. Therefore, a recipient 
could, under the Department's current regulations, misuse Federal 
monies or perform poorly under one program, and still be considered for 
funding under another program.
    So that the proposed regulations do not impede the Department's 
goal of awarding timely FY 1995 discretionary grants, they would not 
take effect until FY 1996 competitions.

Executive Order 12866

Assessment of Costs and Benefits

    These proposed regulations have been reviewed in accordance with 
Executive Order 12866. Under the terms of the order the Secretary has 
assessed the potential costs and benefits of this regulatory action.
    The potential costs associated with the proposed regulations are 
those resulting from statutory requirements and those determined by the 
Secretary to be necessary for administering the Department's programs 
effectively and efficiently. As stated under the heading Paperwork 
Reduction Act of 1995 in this preamble, this proposed rule contains no 
paperwork burdens.
    In assessing the potential costs and benefits--both quantitative 
and qualitative--of these regulations, the Secretary has determined 
that the benefits of the regulations justify the costs.
    The Secretary has also determined that this regulatory action does 
not unduly interfere with State, local, and tribal governments in the 
exercise of their governmental functions.
    To assist the Department in complying with the specific 
requirements of Executive Order 12866, the Secretary invites comment on 
whether there may be further opportunities to reduce any potential 

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costs or increase potential benefits resulting from these proposed 
regulations.

Regulatory Flexibility Act Certification

    The Secretary certifies that these proposed regulations would not 
have a significant economic impact on a substantial number of small 
entities. For the most part these revisions are adopted to streamline 
and improve the discretionary grant process. The proposed revisions 
would not have a significant economic impact on the entities affected.

Paperwork Reduction Act of 1995

    These proposed regulations have been examined under the Paperwork 
Reduction Act of 1995 and have been found to contain no information 
collection requirements.

Invitation To Comment

    Interested persons are invited to submit comments and 
recommendations regarding these proposed regulations.
    All comments submitted in response to these proposed regulations 
will be available for public inspection, during and after the comment 
period, in room 3636, Regional Office Building No. 3, Seventh and D 
Streets S.W., Washington, D.C., between the hours of 8:30 a.m. and 4 
p.m., Monday through Friday of each week except Federal holidays.

Assessment of Educational Impact

    The Secretary particularly requests comments on whether the 
proposed regulations in this document would require transmission of 
information that is being gathered by or is available from any other 
agency or authority of the United States.

List of Subjects in 34 CFR Part 75

    Education department, Discretionary grant programs--education, 
Continuation funding, Grant administration, Incorporation by reference, 
Reporting and recordkeeping requirements, Performance reports, 
Unobligated funds.

    Dated: July 20, 1995.
Richard W. Riley,
Secretary of Education.
(Catalog of Federal Domestic Assistance Number does not apply.)

    The Secretary proposes to amend part 75 of Title 34 of the Code of 
Federal Regulations as follows:

PART 75--DIRECT GRANT PROGRAMS

    1. The authority citation for part 75 continues to read as follows:


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


    2. Section 75.102 is amended by revising paragraphs (a) and (b) and 
adding new paragraph (c), to read as follows:


Sec. 75.102  Deadline date for applications.

    (a) The application notice for a program sets a deadline date for 
applications to be received in the Department.
    (b) (1) The Department of Education only accepts a direct grant 
application if it is received on or before the deadline date unless one 
of the exceptions in paragraph (c) of this section applies.
    (2) If an applicant hand delivers a direct grant application to the 
Department, the applicant shall deliver the application to the address 
specified in the application notice by 2:00 p.m. (Washington, D.C., 
time) on the deadline date.
    (c) The Department accepts a direct grant application received 
after the deadline date only if--
    (1) The applicant can show proof that the application was sent by 
registered or certified mail not later than the fifth calendar day 
before the date specified for receipt of applications (e.g., if an 
announcement requires receipt of applications by the 20th of the month, 
the late application must have been mailed by the 15th); or
    (2) The applicant can show proof that the application was sent by 
commercial carrier not later than the second calendar day before the 
date specified for receipt of applications (e.g., if an announcement 
requires receipt of applications by the 20th of the month, the late 
application must have been sent by the 18th).
* * * * *
    3. Section 75.103 is amended by revising paragraph (b) to read as 
follows:


Sec. 75.103  Deadline date for preapplications.

* * * * *
    (b) An applicant shall submit its preapplication in accordance with 
the procedures for applications in Sec. 75.102 (b), (c), and (d).
* * * * *
    4. Section 75.158 is amended by revising paragraph (c) to read as 
follows:


Sec. 75.158  Deadlines for State comments.

* * * * *
    (c) The appropriate State official shall submit comments to the 
Secretary by the deadline date for State comments. The procedures in 
Sec. 75.102 (b), (c), and (d) (how to meet a deadline) of this part 
apply to this submission.
* * * * *
    5. Section 75.217 is amended by revising paragraph (d)(3) to read 
as follows:


Sec. 75.217  How the Secretary selects applications for new grants.

* * * * *
    (d) * * *
    (3) Any other information--
    (i) Relevant to a criterion, priority, or other requirement that 
applies to the selection of applications for new grants;
    (ii) Concerning the applicant's performance and use of funds under 
a previous award under any Department program; and
    (iii) Concerning the applicant's failure under any Department 
program to submit a performance report or submission of a performance 
report of unacceptable quality.
* * * * *
[FR Doc. 95-23301 Filed 9-19-95; 8:45 am]
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