[Federal Register Volume 64, Number 149 (Wednesday, August 4, 1999)]
[Proposed Rules]
[Pages 42576-42578]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-19955]



[[Page 42575]]

_______________________________________________________________________

Part V





Department of Agriculture





_______________________________________________________________________



Cooperative State Research, Education, and Extension Service



_______________________________________________________________________



7 CFR Part 3419



Matching Funds Requirement for Formula Funds for Agricultural Research 
and Extension Activities at 1890 Land-Grant Institutions, including 
Tuskegee University, and at the 1862 Land-Grant Institutions in Insular 
Areas; Proposed Rule

  Federal Register / Vol. 64, No. 149 / Wednesday, August 4, 1999 / 
Proposed Rules  

[[Page 42576]]


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

DEPARTMENT OF AGRICULTURE

Cooperative State Research, Education, and Extension Service

7 CFR Part 3419

RIN Number: AA24


Matching Funds Requirement for Formula Funds for Agricultural 
Research and Extension Activities at 1890 Land-Grant Institutions, 
Including Tuskegee University, and at the 1862 Land-Grant Institutions 
in Insular Areas

AGENCY: Cooperative State Research, Education, and Extension Service, 
USDA.

ACTION: Notice of proposed rulemaking.

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

SUMMARY: The Cooperative State Research, Education, and Extension 
Service (CSREES) proposes to add a new part 3419 to Title 7, Subtitle 
B, Chapter XXXIV of the Code of Federal Regulations, for the purpose of 
implementing new statutory matching requirements applicable to Federal 
agricultural research and extension formula funds for 1890 land-grant 
institutions, including Tuskegee University, and to the 1862 land-grant 
institutions in the Commonwealth of Puerto Rico and the insular areas 
of American Samoa, Guam, Micronesia, Northern Marianas, and the Virgin 
Islands.

DATES: Written comments are invited from interested individuals and 
organizations. To be considered in the formulation of the final rule, 
comments must be received on or before September 3, 1999.

ADDRESSES: Address all comments to CSREES-USDA; Office of Extramural 
Programs; Policy and Program Liaison Staff; CSREES/USDA; Mail Stop 
2299; 1400 Independence Avenue, S.W.; Washington, D.C. 20250-2299. 
Comments may be hand-delivered to CSREES-USDA; Office of Extramural 
Programs; Policy and Program Liaison Staff; Room 302 Aerospace Center; 
901 D Street, S.W.; Washington, D.C. 20024. Comments may be mailed or 
sent electronically to [email protected].

FOR FURTHER INFORMATION CONTACT: Dr. Edward M. Wilson, Deputy 
Administrator; Plant and Animal Systems; Cooperative State Research, 
Education, and Extension Service; U.S. Department of Agriculture; Mail 
Stop 2220; 1400 Independence Avenue, SW; Washington, DC 20250-2220; at 
202-401-4329, 202-401-4888 (fax) or via electronic mail at 
[email protected].

SUPPLEMENTARY INFORMATION:

Background and Purpose

    This document proposes to add a new part 3419 to Title 7, Subtitle 
B, Chapter XXXIV of the Code of Federal Regulations, for the purpose of 
implementing the new matching requirements for agricultural research 
and extension formula funds authorized for the 1890 land-grant 
institutions and Tuskegee University. Section 226 of the Agricultural 
Research, Extension, and Education Reform Act of 1998 (AREERA), Pub. L. 
105-185, amends Subtitle G of the National Agricultural Research, 
Extension, and Teaching Policy Act of 1977 (NARETPA) by adding a new 
section 1449. This section requires matching funds from non-Federal 
sources for formula funds authorized under sections 1444 and 1445 of 
NARETPA for research and extension activities at the 1890 land-grant 
institutions and Tuskegee University.
    This proposed rule will also implement the new matching 
requirements for the 1862 land-grant institutions in the Commonwealth 
of Puerto Rico and the insular areas of American Samoa, Guam, 
Micronesia, Northern Marianas, and the Virgin Islands. Section 753(d) 
and (e) of the Agriculture, Rural Development, Food and Drug 
Administration, and Related Agencies Appropriations Act, 1999, enacted 
in Division A, section 101(a) of the Omnibus Consolidated and Emergency 
Supplemental Appropriations Act, 1999, Pub. L. 105-277, 112 Stat. 2681-
33 (1999 Agriculture Appropriations Act), amended section 3(d) of the 
Hatch Act of 1887 and section 3(e) of the Smith-Lever Act to subject 
the 1862 land-grant institutions in the Commonwealth of Puerto Rico and 
the insular areas to the same matching requirements as those applicable 
to an eligible institution under section 1449 of NARETPA. The 
amendments made by section 753 apply by operation of law to American 
Samoa, Micronesia, and Northern Marianas by virtue of section 1361(a) 
of Pub. L. 96-374, as amended by 9(c) of Pub. L. 99-396, which provides 
that any provision of law related to land-grant institutions in the 
Virgin Islands or Guam applies to the land-grant institutions in 
American Samoa, the Northern Marianas, and the former Trust Territory 
of the Pacific Islands, the land-grant institution of which is the 
College of Micronesia.
    Section 1449 requires that the State make available matching funds 
to an 1890 institution out of non-Federal funds. CSREES has determined 
that this does not necessarily limit the source of matching funds to 
those directly provided by the State as a part of its direct budget or 
appropriations process. Accordingly, CSREES has defined ``non-Federal 
sources'' to include direct State appropriations and any funds 
generated by the 1890 institution or by the 1862 institution in the 
Commonwealth of Puerto Rico or in an insular area and made available to 
the institution under other authority (other than authority to charge 
tuition and fees paid by students) provided by the State. This would 
include, for example, gift acceptance or user fee authority.

Classification

    This rule has been reviewed under Executive Order 12866 and has 
been determined to be nonsignificant as it will not create a serious 
inconsistency or otherwise interfere with an action planned by another 
agency; will not materially alter the budgetary impact of entitlement, 
grants, user fees, or loan programs, or the rights and obligations of 
the recipients thereof; and will not raise novel legal or policy issues 
arising out of legal mandates, the President's priorities, or 
principles set forth in this executive order. This rule will not have 
an annual effect on the economy of $100 million or more or adversely 
affect in a material way the economy, a sector of the economy, 
productivity, competition, jobs, the environment, public health or 
safety, or State, local, or tribal governments or communities.

Regulatory Flexibility Act

    The Department certifies that this rule will not have a significant 
impact on a substantial number of small entities as defined in the 
Regulatory Flexibility Act, Pub. L. No. 96-534 (5 U.S.C. 601 et seq.). 
Accordingly, a regulatory flexibility analysis is not required for this 
proposed rule.

Catalog of Federal Domestic Assistance

    The programs affected by this proposed rule are listed in the 
Catalog of Federal Domestic Assistance under No. 10.205, Payments to 
1890 Land-Grant Institutions and Tuskegee University, No. 10.500, 
Cooperative Extension Service, and No. 10.203, Payments to Agricultural 
Experiment Stations Under the Hatch Act.

Paperwork Reduction Act

    In accordance with the Office of Management and Budget (OMB) 
regulations (5 CFR Part 1320) which implement the Paperwork Reduction 
Act of 1995 (44 U.S.C. Chapter 35), the information collection and 
recordkeeping requirements that will be imposed in the implementation 
of this proposed rule have been submitted to

[[Page 42577]]

OMB for approval. These requirements would not become effective prior 
to OMB approval.
    Title: Section 1449 Matching Funds Requirement for Research and 
Extension Activities at Eligible Institutions.
    SUMMARY: The purpose of this collection of information is to 
implement the requirements of section 226 of AREERA, which added 
section 1449 to NARETPA, and section 753 of the 1999 Agriculture 
Appropriations Act. These provisions establish new matching 
requirements for the agricultural research and extension formula funds 
authorized for the 1890 land-grant institutions, including Tuskegee 
University, and to the 1862 land-grant institutions in the Commonwealth 
of Puerto Rico and insular areas.
    Need for the Information: This information is needed by CSREES to 
determine if the matching requirements under section 1449 of NARETPA 
have been met by the 1890 land-grant institutions, including Tuskegee 
University, and by the 1862 land-grant institutions in insular areas. 
CSREES intends to require the eligible institutions to complete Form 
CSREES-2103, ``Section 1449 Matching Funds Requirement for Research and 
Extension Activities at Eligible Institutions,'' annually.
    Respondents: Respondents will be the 17 1890 land-grant 
institutions and the six 1862 land-grant institutions in the 
Commonwealth of Puerto Rico and the insular areas, which will provide 
information to USDA on the amount and source of non-Federal funds made 
available by the States, the Commonwealth of Puerto Rico, and the 
insular governments to the eligible institutions for agricultural 
research, extension, and qualifying educational activities to meet the 
matching requirements of section 1449 of NARETPA.
    Estimate of Burden: The estimated burden on the respondents for 
Form CSREES-2103, ``Section 1449 Matching Funds Requirement for 
Research and Extension Activities at Eligible Institutions,'' is 
estimated at 3.9 hours per response.
    Estimated Number of Respondents: 23.
    Estimated Annual Number of Responses: 117.
    Estimated Total Annual Burden on Respondents: 456.3 hours.
    Frequency of Responses: Annually.
    Copies of this information collection can be obtained from Ellen 
Danus, Policy and Program Liaison Staff, Office of Extramural Programs, 
CSREES, USDA, (202) 401-4325. Email: [email protected].
    Comments: Comments are invited on: (a) whether the proposed 
collection of information is necessary for the proper performance of 
the functions of the Agency, including whether the information will 
have practical utility; (b) the accuracy of the Agency's estimate of 
the burden of the proposed collection of information including the 
validity of the methodology and assumptions used; (c) ways to enhance 
the quality, utility, and clarity of the information to be collected; 
and (d) ways to minimize the burden of the collection of information on 
those who are to respond, including the use of appropriate automated, 
electronic, mechanical, or other technological collection techniques or 
other forms of information technology. Comments may be sent to: CSREES-
USDA; Office of Extramural Programs; Policy and Program Liaison Staff; 
Mail Stop 2299; 1400 Independence Avenue, SW; Washington, DC 20250-2299 
by October 4, 1999 or to the Desk Officer for Agriculture, Office of 
Information and Regulatory Affairs, Office of Management and Budget, 
Washington, DC 20502. Reference should be made to the volume, page, and 
date of this Federal Register publication.

List of Subjects in 7 CFR Part 3419

    Agricultural extension, Agricultural research, Colleges and 
universities.
    For reasons set forth in the preamble, it is proposed to amend 
Title 7, Subtitle B, Chapter XXXIV, of the Code of Federal Regulations 
by adding part 3419 to read as follows:

PART 3419--MATCHING FUNDS REQUIREMENT FOR AGRICULTURAL RESEARCH AND 
EXTENSION FORMULA FUNDS AT 1890 LAND-GRANT INSTITUTIONS, INCLUDING 
TUSKEGEE UNIVERSITY, AND AT 1862 LAND-GRANT INSTITUTIONS IN INSULAR 
AREAS

Sec.

3419.1  Definitions.
3419.2 Matching funds.
3419.3 Determination of non-Federal sources of funds.
3419.4 Limited waiver authority.
3419.5 Use of Matching Funds.
3419.6 Redistribution of funds.

    Authority: 5 U.S.C. 301, 7 U.S.C. 3222d; Sec. 753, Pub. L. 105-
277, 112 Stat. 2681-33


Sec. 3419.1  Definitions.

    As used in this part:
    Eligible institution means a college or university eligible to 
receive funds under the Act of August 30, 1890 (7 U.S.C. 321 et seq.) 
(commonly known as the Second Morrill Act), including Tuskegee 
University, or a college or university designated under the Act of July 
2, 1862 (7 U.S.C. 301, et seq.)(commonly known as the First Morrill 
Act) and located in the Commonwealth of Puerto Rico and the insular 
areas of American Samoa, Guam, Micronesia, Northern Marianas, and the 
Virgin Islands.
    Formula funds means agricultural research funds provided to the 
eligible institutions under section 1445 of the National Agricultural 
Research, Extension, and Teaching Policy Act of 1977 (NARETPA), as 
amended, or under section 3 of the Hatch Act of 1887, 7 U.S.C. 361c, 
and agricultural extension funds provided to the eligible institutions 
under section 1444 of NARETPA or under sections 3(b) and (c) of the 
Smith-Lever Act, 7 U.S.C. 343(b) and (c).
    Matching funds means funds from non-Federal sources made available 
by the State to the eligible institutions:
    (1) For programs or activities that fall within the purposes of 
agricultural research and cooperative extension under sections 1444 and 
1445 of NARETPA, the Hatch Act of 1887, and the Smith-Lever Act; or
    (2) For qualifying educational activities. Matching funds means 
cash contributions and excludes in-kind matching contributions.
    Non-Federal sources means funds made available by the State to the 
eligible institution either through direct appropriation or under any 
authority (other than authority to charge tuition and fees paid by 
students) provided by a State to an eligible institution to raise 
revenue, such as gift acceptance authority or user fees.
    Qualifying educational activities means programs that address food 
and agricultural sciences components of an eligible institution.
    Secretary means the Secretary of Agriculture and any other officer 
or employee of the Department of Agriculture to whom the authority 
involved may be delegated.
    State means the government of any one of the fifty States, the 
Commonwealth of Puerto Rico, Guam, American Samoa, the Commonwealth of 
Northern Marianas, the Virgin Islands of the United States, the 
Republic of Palau, the Republic of the Marshall Islands, and the 
Federated States of Micronesia.


Sec. 3419.2  Matching funds.

    The distribution of formula funds shall be subject to the following 
matching requirements:
    (a) For fiscal year 2000, matching funds shall equal not less than 
30

[[Page 42578]]

percent of the formula funds to be distributed to the eligible 
institution;
    (b) For fiscal year 2001, matching funds shall equal not less than 
45 percent of the formula funds to be distributed to the eligible 
institution; and
    (c) For fiscal year 2002 and each fiscal year thereafter, the 
matching funds shall equal not less than 50 percent of the formula 
funds to be distributed to the eligible institution.


Sec. 3419.3  Determination of non-Federal sources of funds.

    (a) Each eligible institution shall submit by September 30, 1999, a 
report describing for fiscal year 1999:
    (1) The sources of non-Federal funds made available to the eligible 
institutions for agricultural research, extension, and qualified 
educational activity to meet the matching requirements of section 1449 
of NARETPA, as amended; and
    (2) The amount of funds generally available from each source.
    (b) This report for the fiscal year ending September 30, 1999, may 
also include a request for a waiver of the matching funds requirement 
for fiscal year 2000. For fiscal year 2000 and thereafter, this report 
must be submitted by July 1.


Sec. 3419.4  Limited waiver authority.

    (a) The Secretary may waive the matching funds requirement for 
fiscal year 2000 for an eligible institution of a State if the 
Secretary determines that, based on the report received under 
Sec. 3419.3, the State will be unlikely to satisfy the matching 
requirement. The criteria to waive the match in fiscal year 2000 may 
include:
    (1) Natural disaster, flood, fire, tornado, hurricane, or drought;
    (2) State and/or institution facing a financial crisis; or
    (3) Demonstration of a good faith effort to obtain funds.
    (b) Approval or disapproval of the request for a waiver will be 
based on the report submitted under Sec. 3419.3. The Secretary may not 
waive the matching requirement for any fiscal year other than fiscal 
year 2000.


Sec. 3419.5  Use of matching funds.

    The required matching funds for the formula programs shall be used 
by an eligible institution for agricultural research and extension 
activities that have been approved in the plan of work required under 
sections 1444(d) and 1445(c) of the National Agricultural Research, 
Extension, and Teaching Policy Act of 1977, section 7 of the Hatch Act 
of 1887, section 4 of the Smith-Lever Act, or for approved qualifying 
education activities.


Sec. 3419.6  Redistribution of funds.

    All formula funds not matched and reported under Sec. 3419.3 by 
July 1 of each fiscal year will be reapportioned to the other eligible 
institutions who have satisfied their current fiscal year requirement 
for matching funds for the formula funds. Unmatched research and 
extension funds will be reapportioned in accordance with the research 
and extension statutory distribution formulas applicable to the 1890 
and 1862 land-grant institutions, respectively. Any redistribution of 
funds shall be subject to the same matching requirement under 
Sec. 3419.2.

    Done at Washington, D.C., this 29th day of July 1999.
I. Miley Gonzalez,
Under Secretary, Research, Education, and Economics.
[FR Doc. 99-19955 Filed 8-3-99; 8:45 am]
BILLING CODE 3410-22-P