[Federal Register Volume 63, Number 121 (Wednesday, June 24, 1998)]
[Rules and Regulations]
[Pages 34328-34330]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-16826]


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

DEPARTMENT OF HEALTH AND HUMAN SERVICES

Administration for Children and Families

45 CFR Part 1302

RIN 0970-AB52


Head Start Program

AGENCY: Administration on Children, Youth and Families (ACYF), 
Administration for Children and Families (ACF), HHS.

ACTION: Final rule.

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

SUMMARY: The Administration on Children, Youth and Families is issuing 
this final rule to amend its procedures regarding replacement of Indian 
tribal grantees. The change would add provisions to implement a new 
statutory provision that allows Indian tribes which are Head Start 
grantees to identify an agency, and request that the agency be 
designated by the Department as an alternative grantee, when the 
grantee is terminated or denied refunding.

EFFECTIVE DATES: The effective date of this final rule is July 24, 
1998.

FOR FURTHER INFORMATION CONTACT: Douglas Klafehn, Deputy Associate 
Commissioner, Head Start Bureau, Administration for Children, Youth and 
Families, P.O. Box 1182, Washington, D.C. 20013; (202) 205-8572.

SUPPLEMENTARY INFORMATION:

I. Program Purpose

    Head Start is authorized under the Head Start Act (42 U.S.C. 9801 
et seq.). It is a national program providing comprehensive 
developmental services primarily to low-income preschool children, age 
three to the age of compulsory school attendance, and their families. 
In addition, Section 645A of the Head Start Act provides authority to 
fund programs for families with infants and toddlers, known as Early 
Head Start programs. To help enrolled children achieve their full 
potential, Head Start programs provide comprehensive health, 
nutritional, educational, social and other services. Additionally, Head 
Start programs are required to provide for the direct participation of 
the parents of enrolled children in the development, conduct, and 
direction of local programs. Parents also receive training and 
education to foster their understanding of and involvement in the 
development of their children. In fiscal year 1997, Head Start served 
793,809 children through a network of over 2,000 grantees and delegate 
agencies.
    While Head Start is intended to serve primarily children whose 
families have incomes at or below the poverty line, or who receive 
public assistance, the Head Start Act and implementing regulations 
permit up to 10 percent (and more for Indian tribes under certain 
circumstances) of the children in local programs to be from families 
who do not meet these low-income criteria. The Act also requires that a 
minimum of 10 percent of the enrollment opportunities in each program 
be made available to children with disabilities. Such children are 
expected to participate in the full range of Head Start services and 
activities with their non-disabled peers and to receive needed special 
education and related services.

II. Summary of the Final Rule

    This final rule was published as a Notice of Proposed Rulemaking on 
December 16, 1997, in the Federal Register (62 FR 65778). We received 
no comments on the rule and therefore are issuing it as final with no 
changes.
    The authority for this final rule is section 646 of the Head Start 
Act (42 U.S.C. 9841), as amended by Public Law 103-252, Title I of the 
Human Service Amendments of 1994. Section 646(e) directs the Secretary 
to specify a process by which an Indian tribe may identify an agency, 
and request that the agency identified be designated as the Head Start 
agency providing services to the tribe, if (a) financial assistance to 
the tribal grantee is terminated, and (b) the tribe would otherwise be 
precluded from providing Head Start services to its members because of 
the termination. The Act specifies that the regulation must prohibit 
the designation as Head Start grantee of an agency that includes an 
employee who served on the administrative or program staff of the 
terminated agency when that employee was responsible for a deficiency 
that was the basis for the termination.
    The final rule:
     Adds a new definition for Indian tribe;
     Provides that an Indian tribe may identify an agency to 
serve as the alternative grantee at the time that it receives a notice 
of termination or a notice of denial of refunding;
     Allows the tribe to participate in the selection of the 
replacement grantee; and
     Allows the tribe a second opportunity to identify an 
alternative agency if the Department finds the first agency identified 
by the tribe is not an eligible agency capable of operating a Head 
Start program. If the second agency identified by the tribe is not 
selected as a Head Start grantee, a

[[Page 34329]]

replacement grantee will be designated under 45 CFR Part 1302.

III. Impact Analysis

Executive Order 12866

    Executive Order 12866 requires that regulations be drafted to 
ensure that they are consistent with the priorities and principles set 
forth in the Executive Order. The Department has determined that this 
final rule is consistent with these priorities and principles. This 
final rule sets forth a process whereby an Indian tribe that is being 
terminated as a Head Start grantee may identify an alternative agency 
and request that the alternative agency be designated as the Head Start 
agency providing services to the tribe. The costs of implementing this 
rule are not significant.

Regulatory Flexibility Act of 1980

    The Regulatory Flexibility Act (5 U.S.C. Ch. 6) requires the 
Federal Government to anticipate and reduce the impact of rules and 
paperwork requirements on small businesses. For each rule with a 
``significant economic impact on a substantial number of small 
entities'' an analysis must be prepared describing the rule's impact on 
small entities. Small entities are defined by the Act to include small 
businesses, small non-profit organizations and small governmental 
entities. While these regulations would affect small entities, they 
would not affect a substantial number. Also, the rule will not have a 
significant economic impact because the only action called for is to 
nominate a successor grantee, which should not require more than a 
nominal expenditure of grant funds. For this reason, the Secretary 
certifies that this rule will not have a significant impact on 
substantial numbers of small entities.

Paperwork Reduction Act

    Under the Paperwork Reduction Act of 1995, Public Law 104-13, all 
Departments are required to submit collections of information contained 
in proposed and final rules published in the Federal Register to the 
Office of Management and Budget for review and approval. This final 
rule does not contain collection of information as defined in the 
Paperwork Reduction Act and implementing regulations.

List of Subjects in 45 CFR Part 1302

    Education of disadvantaged, Grant programs--social programs, 
Selection of grantees.

(Catalog of Federal Domestic Assistance Program Number 93.600, 
Project Head Start)

    Dated: June 2, 1998.
Olivia A. Golden,
Assistant Secretary for Children and Families.

    For the reasons set forth in the Preamble, 45 CFR Part 1302 is 
amended as follows:

PART 1302--POLICIES AND PROCEDURES FOR SELECTION, INITIAL FUNDING, 
AND REFUNDING OF HEAD START GRANTEES, AND FOR SELECTION OF 
REPLACEMENT GRANTEES

    1. The Authority citation for part 1302 continues to read as 
follows:

    Authority: 42 U.S.C. 9801 et seq.

    2. Section 1302.2 is amended by adding a definition for ``Indian 
Tribe'' to read as follows:


Sec. 1302.2  Definitions.

* * * * *
    Indian tribe means any tribe, band, nation, pueblo, or other 
organized group or community of Indians, including any Native village 
described in section 3(c) of the Alaska Native Claims Settlement Act 
(43 U.S.C. 1602 (c)) or established pursuant to such Act (43 U.S.C. 
1601 et seq.) that is recognized as eligible for special programs and 
services provided by the United States to Indians because of their 
status as Indians.
* * * * *
    3. A new Subpart D, containing new sections 1302.30, 1302.31, and 
1302.32, is added to read as follows:

Subpart D--Replacement of Indian Tribal Grantees


Sec. 1302.30  Procedure for identification of alternative agency.

    (a) An Indian tribe whose Head Start grant has been terminated, or 
which has been denied refunding as a Head Start grantee, may identify 
an agency and request the responsible HHS official to designate such 
agency as an alternative agency to provide Head Start services to the 
tribe if:
    (1) The tribe was the only agency that was receiving federal 
financial assistance to provide Head Start services to members of the 
tribe; and
    (2) The tribe would be otherwise precluded from providing such 
services to its members because of the termination or denial of 
refunding.
    (b)(1) The responsible HHS official, when notifying a tribal 
grantee of the intent to terminate financial assistance or deny its 
application for refunding, must notify the grantee that it may identify 
an agency and request that the agency serve as the alternative agency 
in the event that the grant is terminated or refunding denied.
    (2) The tribe must identify the alternate agency to the responsible 
HHS official, in writing, within the time for filing an appeal under 45 
CFR Part 1303.
    (3) The responsible HHS official will notify the tribe, in writing, 
whether the alternative agency proposed by the tribe is found to be 
eligible for Head Start funding and capable of operating a Head Start 
program. If the alternative agency identified by the tribe is not an 
eligible agency capable of operating a Head Start program, the tribe 
will have 15 days from the date of the sending of the notification to 
that effect from the responsible HHS official to identify another 
agency and request that the agency be designated. The responsible HHS 
official will notify the tribe in writing whether the second proposed 
alternate agency is found to be an eligible agency capable of operating 
the Head Start program.
    (4) If the tribe does not identify a suitable alternative agency, a 
replacement grantee will be designated under these regulations.
    (c) If the tribe appeals a termination of financial assistance or a 
denial of refunding, it will, consistent with the terms of 45 CFR Part 
1303, continue to be funded pending resolution of the appeal. However, 
the responsible HHS official and the grantee will proceed with the 
steps outlined in this regulation during the appeal process.
    (d) If the tribe does not identify an agency and request that the 
agency be appointed as the alternative agency, the responsible HHS 
official will seek a permanent replacement grantee under these 
regulations.


Sec. 1302.31  Requirements of alternative agency.

    The agency identified by the Indian tribe must establish that it 
meets all requirements established by the Head Start Act and these 
requirements for designation as a Head Start grantee and that it is 
capable of conducting a Head Start program. The responsible HHS 
official, in deciding whether to designate the proposed agency, will 
analyze the capacity and experience of the agency according to the 
criteria found in section 641(d) of the Head Start Act and 
Secs. 1302.10 (b)(1) through (5) and 1302.11 of this part.


Sec. 1302.32  Alternative agency--prohibition.

    (a) No agency will be designated as the alternative agency pursuant 
to this subpart if the agency includes an employee who:
    (1) Served on the administrative or program staff of the Indian 
tribal grantee, and
    (2) Was responsible for a deficiency that:
    (i) Relates to the performance standards or financial management

[[Page 34330]]

standards described in the Head Start Act; and
    (ii) Was the basis for the termination or denial of refunding 
described in Sec. 1302.30 of this part.
    (b) The responsible HHS official shall determine whether an 
employee was responsible for a deficiency within the meaning and 
context of this section.

[FR Doc. 98-16826 Filed 6-23-98; 8:45 am]
BILLING CODE 4184-01-P