[Federal Register Volume 64, Number 56 (Wednesday, March 24, 1999)]
[Proposed Rules]
[Pages 14202-14203]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-7220]


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DEPARTMENT OF HEALTH AND HUMAN SERVICES

Administration for Children and Families

45 CFR Part 1302

RIN 0970-AB98


Head Start Program

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

ACTION: Notice of Proposed Rulemaking.

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SUMMARY: The Administration on Children, Youth and Families proposes to 
amend Head Start regulations governing policies and procedures on 
selection and funding of grantees. The amendment would remove the 
section on priority for previously selected Head Start agencies. We 
propose to remove this section because of increased confusion among 
existing Head Start grantees about the meaning of ``priority'' as ACYF 
acts to replace grantees who have been terminated or relinquish their 
grant. This proposed change will clarify that the ``priority'' provided 
under the Head Start Act (``Act'') applies to annual refunding of 
existing grantees and not to competition to select a grantee to serve 
an unserved area or an area previously served by a grantee no longer 
with the program. Removal of this section will not affect the ongoing 
funding or operation of Head Start grantees.

DATES: In order to be considered comments on this proposed rule must be 
received on or before May 24, 1999.

ADDRESSES: Please address comments to the Associate Commissioner, Head 
Start Bureau, Administration on Children, Youth, and Families, P.O. Box 
1182, Washington, DC 20013. Beginning 14 days after close of the 
comment period, comments will be available for public inspection on 
Room 2219, 330 C Street, SW, Washington, DC 20201, Monday through 
Friday, between the hours of 9:00 a.m. and 4:00 p.m.

FOR FURTHER INFORMATION CONTACT: James Kolb, (202) 205-8580.

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, 
primarily age three to the age of compulsory school attendance, and 
their families. To help enrolled children achieve their full potential, 
Head Start programs provide comprehensive health, nutritional, 
educational, social and other services. Also, section 645A of the Head 
Start Act provides authority (authorized in 1994) to fund programs for 
families with infants and toddlers. Programs receiving funds under the 
authority of this section are referred to as Early Head Start programs.
    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 1998, 
Head Start served 823,000 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, Head Start policy permits up to 10 percent 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. Discussion of the Proposed Removal of 45 CFR 1302.12

    The Administration for Children and Families (ACF) is proposing to 
delete section 1302.12 entitled ``Priority for previously selected Head 
Start agencies.'' A number of grantees have been terminated or have 
relinquished their grant in the past several years because they have 
been unable to meet quality standards applicable to Head Start 
grantees. This section has caused confusion as ACF has acted to replace 
these grantees. Removing this section will reduce confusion and 
misunderstanding among existing Head Start grantees about the proper 
application of ``priority.''

    [Note: The references to Section 641 of the Head Start Act in 
this Preamble reflect, where appropriate, the recent reauthorization 
changes made to the Head Start Act in the Coats Human Services 
Reauthorization Act of 1998, Public Law 105-285, enacted October 27, 
1998. The Head Start statutory changes in the Reauthorization Act do 
not affect the proposed removal of 45 CFR 1302.12.]

    Since the Head Start, Economic Opportunity, and Community 
Partnership Act of 1974 (Pub. L. 93-644) was enacted, the Head Start 
Bureau has used the ``priority'' referred to in the current Section 
641(c) of the Act as the basis for the noncompetitive refunding of 
existing Head Start grantees. This is effected by making grant awards 
with an indefinite project period. So long as a grantee meets the 
programmatic and fiscal requirements of the Act and regulations, it 
continues to receive priority for refunding. Pursuant to the intent of 
Congress, this provision has assured continuity of services to children 
and families, without the disruption that a periodic and routine change 
of sponsoring agency would entail.
    We are proposing to eliminate 45 CFR 1302.12 from the regulations 
governing the selection of grantees. This change is being proposed to 
make it clear that the application of the priority provided by section 
641(c) of the Head Start Act does not apply to competitions to select a 
grantee to serve an unserved area or an area previously served by a 
grantee no longer with the program. The statute as now written provides 
in section 641(a) that in order to be designated as a Head Start 
grantee an organization must be within the community to be served. 
Under section 641(d), a competition for award of Head Start funding is 
only held where no entity in the community is eligible for a priority. 
``Community'' is defined in section 641(b) as ``a city, county, or 
multicity or multicounty unit within a State, an Indian reservation 
(including Indians in any off reservation area designated by an 
appropriate tribal government in the consultation with the Secretary), 
or a neighborhood or other area (irrespective of boundaries or 
political subdivisions) which provides a suitable organizational base 
and possesses the commonality of interest needed to operate a Head 
Start program.'' As the result of the adoption of 45 CFR 1305.3, all 
grantees must specify in their annual applications for funding the 
``service area'' that they plan to serve. They must define it by 
``county or sub-county area, such as a municipality, town or census 
tract or a federally recognized Indian reservation'' and it must not 
overlap with the service areas where other grantees have been

[[Page 14203]]

designated to provide services. A Head Start grantee that is not 
receiving funding to provide Head Start services in the particular 
service area would be ineligible for a priority in selection to serve 
that community under section 641(c) because it is not eligible for 
selection as a Head Start grantee within the community under section 
641(a). Therefore, 45 CFR 1302.12 is no longer needed in the 
regulation. (The 1998 Head Start reauthorization, however, provides 
priority to a delegate agency that functioned in the community when the 
Secretary is designating a Head Start agency but this change would not 
affect this NPRM.)
    Eliminating Sec. 1302.12 will clarify that priority applies to the 
annual refunding of existing grantees providing services within their 
communities, not to other circumstances such as selection of a 
replacement grantee. Section 641(a) provides the relevant guidance in 
these cases by specifying that ``[t]he Secretary is authorized to 
designate as a Head Start agency any local public or private nonprofit 
or for-profit agency, within a community . . .'' (emphasis added). A 
Head Start agency's approved service area defines the community it is 
serving. A geographic area outside the grantee's approved service area 
(e.g., the service area of a grantee that has left the program) would 
not be within its community and thus priority would not apply.
    We want to emphasize that this proposed rule does not affect in any 
way the annual refunding of existing grantees to continue to provide 
Head Start services in their approved service area. Grantees will 
continue to receive this priority for funding without interruption. 
Only when a grantee is terminated or relinquishes its grant, and the 
service area thus has no provider, does this proposed rule have an 
effect.

III. Impact Analysis

Executive Order 12866

    Executive Order 12866 require 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 the removal 
of 45 CFR 1302.12 is consistent with these priorities and principles.

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. Removal of section 1302.12 will not affect any Head Start 
grantees, including those that are small entities. The change brings 
the regulations into conformity with requirements of the regulations 
and the statute.

Paperwork Reduction Act

    Under the Paperwork Reduction Act (PRA) of 1995, Public Law 104-13, 
all Departments are required to submit to the Office of Management and 
Budget (OMB) for review and approval any reporting or record-keeping 
requirement inherent in a proposed or final rule. The removal of 
section 1302.12 is not affected by the PRA requirement.

List of Subjects in 45 CFR Part 1302

    Education of disadvantaged, Grant programs--social programs.

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

    Dated: October 19, 1998.
Olivia A. Golden,
Assistant Secretary for Children and Families.

    Approved: December 10, 1998.
Donna E. Shalala,
Secretary.
    For the reasons set forth in the Preamble, 45 CFR part 1302 is 
proposed to be amended to read 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 is revised to read as 
follows:

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

    2. Section 1302.12 is removed.

[FR Doc. 99-7220 Filed 3-23-99; 8:45 am]
BILLING CODE 4184-01-P