[Federal Register Volume 64, Number 230 (Wednesday, December 1, 1999)]
[Proposed Rules]
[Pages 67235-67236]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-31009]


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CORPORATION FOR NATIONAL AND COMMUNITY SERVICE

45 CFR Parts 2522 and 2525

RIN 3045-AA09


AmeriCorps Education Awards

AGENCY: Corporation for National and Community Service.

ACTION: Proposed rule.

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SUMMARY: We propose to amend several provisions relating to the 
AmeriCorps education award, including those governing the circumstances 
under which an AmeriCorps member may be determined eligible for a pro-
rated education award and the ways in which participants may use the 
award.

DATES: The deadline for written comments is January 31, 2000.

ADDRESSES: Comments may be mailed or delivered to Gary Kowalczyk, 
Coordinator of National Service Programs, Corporation for National and 
Community Service, 1201 New York Avenue NW, Washington, D.C. 20525, 
sent by facsimile transmission to (202) 565-2784, or sent 
electronically to [email protected]. Copies of all communications 
received will be available for review at the Corporation by members of 
the public.

FOR FURTHER INFORMATION CONTACT: Gary Kowalczyk, Coordinator of 
National Service Programs, Corporation for National and Community 
Service, (202) 606-5000, ext. 340. T.D.D. (202) 565-2799. This proposed 
rule may be requested in an alternative format for persons with visual 
impairments.

SUPPLEMENTARY INFORMATION: Pursuant to the National and Community 
Service Act of 1990, as amended (42 U.S.C. 12501 et seq.), the 
Corporation for National and Community Service (``the Corporation''), 
through the National Service Trust, provides education awards and 
qualified student loan interest benefits to AmeriCorps participants who 
successfully complete a term of service in an approved national service 
position. The AmeriCorps education award may be used to pay for 
specified educational costs and to repay certain types of student 
loans. In addition, upon a participant's successful completion of a 
term of service, the National Service Trust will pay the interest that 
accrued during the term on certain types of student loans.
    On July 12, 1999 (64 FR 37411), we published final rules governing 
the AmeriCorps education award and related interest benefits. This 
notice of proposed rulemaking proposes to clarify one provision 
regarding eligibility for a pro-rated education award and another 
provision concerning the use of the education award to pay current 
educational expenses.

Release for Compelling Personal Circumstances

    A participant who demonstrates that compelling personal 
circumstances make completion of the term of service unreasonably 
difficult or impossible may be eligible for a pro-rated education 
award. In the final rule published on July 12, 1999, we listed examples 
of situations that could be properly classified as compelling personal 
circumstances. The proposed rule would eliminate one of the situations 
listed as an example of compelling personal circumstances. 
Specifically, we propose to rescind our previous determination that 
compelling personal circumstances are present when a participant, who 
is serving in a program that includes in its approved objectives the 
promotion of employment among participants, leaves a term of service to 
accept an employment opportunity. We believe that eliminating this 
category is

[[Page 67236]]

necessary to promote consistency in the provision of pro-rated 
education awards throughout AmeriCorps. Under the proposed rule, a 
participant who leaves service for employment is eligible for an 
education award only if the participant is a recipient of Temporary 
Assistance to Needy Families (TANF) making the transition from welfare 
to work.

Definition of Current Educational Expenses

    The proposed rule expands the definition of ``current'' educational 
expenses to include expenses incurred after an individual enrolls as an 
AmeriCorps member. The final rule published on July 12, 1999, covered 
expenses incurred only after the completion of service. We believe that 
interpreting ``current'' educational expenses to include those incurred 
after an AmeriCorps member begins a term of service would avoid 
financial hardship for AmeriCorps members who serve while also 
attending an institution of higher education.

Executive Order 12866

    We have determined that this regulatory action is not a 
``significant'' rule within the meaning of Executive Order 12866 
because it is not likely to result in: (1) An annual effect on the 
economy of $100 million or more, or an adverse and material effect on a 
sector of the economy, productivity, competition, jobs, the 
environment, public health or safety, or State, local, or tribal 
government or communities; (2) the creation of a serious inconsistency 
or interference with an action taken or planned by another agency; (3) 
a material alteration in the budgetary impacts of entitlement, grants, 
user fees, or loan programs or the rights and obligations of recipients 
thereof; or (4) the raising of novel legal or policy issues arising out 
of legal mandates, the President's priorities, or the principles set 
forth in Executive Order 12866.

Regulatory Flexibility Act

    We have determined that this regulatory action will not result in 
(1) an annual effect on the economy of $100 million or more; (2) a 
major increase in costs or prices for consumers, individual industries, 
Federal, State, or local government agencies, or geographic regions; or 
(3) significant adverse effects on competition, employment, investment, 
productivity, innovation, or on the ability of United States-based 
enterprises to compete with foreign-based enterprises in domestic and 
export markets. Therefore, we have not performed the initial regulatory 
flexibility analysis that is required under the Regulatory Flexibility 
Act (5 U.S.C. 601 et seq.) for major rules that are expected to have 
such results.

Other Impact Analyses

    Because the proposed changes do not authorize any information 
collection activity outside the scope of existing regulations, this 
regulatory action is not subject to review and approval under the 
Paperwork Reduction Act of 1995 (44 U.S.C. 3500 et seq.). For purposes 
of Title II of the Unfunded Mandates Reform Act of 1995, 2 U.S.C. 1531-
1538, as well as Executive Order 12875, this regulatory action does not 
contain any federal mandate that may result in increased expenditures 
in either Federal, State, local, or tribal governments in the 
aggregate, or impose an annual burden exceeding $100 million on the 
private sector.

List of Subjects

45 CFR Part 2522

    AmeriCorps, Grant programs--social programs, Reporting and 
recordkeeping requirements, Volunteers.

45 CFR Part 2525

    Grant programs--social programs, Student aid, Volunteers.

    For the reasons stated in the preamble, chapter XXV, title 45 of 
the Code of Federal Regulations is proposed to be amended as follows:

PART 2522-AMERICORPS PARTICIPANTS, PROGRAMS, AND APPLICANTS

    1. The authority citation for part 2522 continues to read as 
follows:

    Authority: 42 U.S.C. 12501 et seq.

    2. Section 2522.230 is amended by revising paragraphs (a)(5) and 
(a)(6) to read as follows:


Sec. 2522.230  Under what circumstances may AmeriCorps participants be 
released from completing a term of service, and what are the 
consequences?

* * * * *
    (a) * * *
    (5) Compelling personal circumstances include:
    (i) Those that are beyond the participant's control, such as, but 
not limited to:
    (A) A participant's disability or serious illness;
    (B) Disability, serious illness, or death of a participant's family 
member if this makes completing a term unreasonably difficult or 
impossible; or
    (C) Conditions attributable to the program or otherwise 
unforeseeable and beyond the participant's control, such as a natural 
disaster, a strike, relocation of a spouse, or the nonrenewal or 
premature closing of a project or program, that make completing a term 
unreasonably difficult or impossible;
    (ii) Those that the Corporation, has for public policy reasons, 
determined as such, including:
    (A) Military service obligations; or
    (B) Acceptance by a participant of an opportunity to make the 
transition from welfare to work.
    (6) Compelling personal circumstances do not include leaving a 
program:
    (i) To enroll in school;
    (ii) To obtain employment, other than in moving from welfare to 
work; or
    (iii) Because of dissatisfaction with the program.
* * * * *

PART 2525-NATIONAL SERVICE TRUST: PURPOSE AND DEFINITIONS

    1. The authority citation for part 2525 continues to read as 
follows:

    Authority: 42 U.S.C. 12601-12604.

    2. Section 2525.20 is amended by revising the definition of 
``Current educational expenses'' to read as follows:


Sec. 2525.20  Definitions.

* * * * *
    Current educational expenses. The term current educational expenses 
means the cost of attendance for a period of enrollment in an 
institution of higher education that begins after an individual enrolls 
in an approved national service position.
* * * * *

    Dated: November 23, 1999.
Wendy Zenker,
Chief Operating Officer.
[FR Doc. 99-31009 Filed 11-30-99; 8:45 am]
BILLING CODE 6050-28-U