[Federal Register Volume 65, Number 145 (Thursday, July 27, 2000)]
[Proposed Rules]
[Pages 46324-46329]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-18971]



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Part VI





Department of Education





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34 CFR Part 682



Special Leveraging Educational Assistance Partnership Program; Proposed 
Rule

  Federal Register / Vol. 65, No. 145 / Thursday, July 27, 2000 / 
Proposed Rules  

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DEPARTMENT OF EDUCATION

34 CFR Part 692

RIN 1845-AA18


Special Leveraging Educational Assistance Partnership Program

AGENCY: Office of Postsecondary Education, Department of Education.

ACTION: Notice of proposed rulemaking.

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SUMMARY: The proposed regulations govern the new Special Leveraging 
Educational Assistance Partnership (SLEAP) Program. These proposed 
regulations would implement changes made to the Higher Education Act of 
1965, as amended (HEA), by the Higher Education Amendments of 1998, 
Public Law 105-481 (1998 Amendments).

DATES: We must receive your comments on or before September 11, 2000.

ADDRESSES: Address all comments about these proposed regulations to 
Jackie Butler, U.S. Department of Education, P.O. Box 23272, 
Washington, DC 20026-3272. If you prefer to send your comments through 
the Internet use the following address: [email protected].
    If you want to comment on the information collection requirements 
you must send your comments to the Office of Management and Budget at 
the address listed in the Paperwork Reduction Act section of this 
preamble. You may also send a copy of these comments to the Department 
representative named in this section.

FOR FURTHER INFORMATION CONTACT: Jackie Butler, U.S. Department of 
Education, 400 Maryland Avenue, SW., room 3045, ROB-3, Washington, DC 
20202-5447. Telephone: (202) 708-8242.
    If you use a telecommunications device for the deaf (TDD), you may 
call the Federal Information Relay Service (FIRS) at 1-800-877-8339.
    Individuals with disabilities may obtain this document in an 
alternate format (e.g., Braille, large print, audiotape, or computer 
diskette) on request to the contact person listed under FOR FURTHER 
INFORMATION CONTACT.

SUPPLEMENTARY INFORMATION:

Invitation To Comment

    We invite you to submit comments regarding these proposed 
regulations. To ensure that your comments have maximum effect in 
developing the final regulations, we urge you to identify clearly the 
specific section or sections of the proposed regulations that each of 
your comments addresses and to arrange your comments in the same order 
as the proposed regulations.
    We invite you to assist us in complying with the specific 
requirements of Executive Order 12866 and its overall requirement of 
reducing regulatory burden that might result from these proposed 
regulations. Please let us know of any further opportunities we should 
take to reduce potential costs or increase potential benefits while 
preserving the effective and efficient administration of the program.
    During and after the comment period, you may inspect all public 
comments about these proposed regulations in Room 3053, ROB-3, 7th & D 
Streets, SW., Washington, DC, between the hours of 8:30 a.m. and 4 
p.m., Eastern time, Monday through Friday of each week except Federal 
holidays.

Assistance to Individuals With Disabilities in Reviewing the 
Rulemaking Record

    On request, we will supply an appropriate aid, such as a reader or 
print magnifier, to an individual with a disability who needs 
assistance to review the comments or other documents in the public 
rulemaking record for these proposed regulations. If you want to 
schedule an appointment for this type of aid, you may call (202) 205-
8113 or (202) 260-9895. If you use a TDD, you may call the Federal 
Information Relay Service at 1-800-877-8339.

Negotiated Rulemaking

    Section 492 of the HEA requires that, before publishing any 
proposed regulations for programs under Title IV of the HEA, we obtain 
public involvement in the development of the proposed regulations. 
After obtaining advice and recommendations, we must conduct a 
negotiated rulemaking process to develop the proposed regulations. All 
published proposed regulations must conform to agreements resulting 
from the negotiated rulemaking process unless we reopen the negotiated 
rulemaking process or provide a written explanation to the participants 
in that process why we have decided to depart from the agreements.
    To obtain public involvement in the development of the proposed 
regulations, we held listening sessions in Washington, DC, Atlanta, 
Chicago, and San Francisco. We held four half-day sessions on September 
13 and 14, 1999, in Washington, DC. In addition, we held three regional 
sessions; one in Atlanta on September 17, one in Chicago on September 
24, and one in San Francisco on September 27, 1999. The Office of 
Student Financial Assistance's Customer Service Task Force also 
conducted listening sessions to obtain public involvement in the 
development of our regulations.
    We then published a notice in the Federal Register (64 FR 73458, 
December 30, 1999) to announce our intention to establish two 
negotiated rulemaking committees to draft proposed regulations 
affecting Title IV of the HEA. The notice requested nominations for 
participants from anyone who believed that his or her organization or 
group should participate in this negotiated rulemaking process. The 
notice announced that we would select participants for the process from 
the nominees of those organizations or groups. The notice also 
announced a tentative list of issues that each committee would 
negotiate.
    Once the two committees were established, they met to develop 
proposed regulations over the course of several months, beginning in 
February, 2000. The proposed regulations contained in this NPRM reflect 
the final consensus of Negotiating Committee II (committee), which was 
made up of the following members:

American Association of Collegiate Registrars and Admissions 
Officers
American Association of Cosmetology Schools
American Association of State Colleges and Universities (in 
coalition with American Association of Community Colleges)
American Council on Education
Association of Jesuit Colleges and Universities
Career College Association
Coalition of Publicly Traded Educational Institutions
Consumer Bankers Association
Legal Services
NAFSA: Association of International Educators
National Accrediting Commission of Cosmetology Arts and Sciences, 
Inc.
National Association of College and University Business Officers
National Association of Independent Colleges and Universities
National Association of Student Financial Aid Administrators
National Association for State Student Grant and Aid Programs
National Association of State Universities and Land-Grant Colleges
National Council of Higher Education Loan Programs
National Direct Student Loan Coalition
Student Loan Servicing Alliance
The College Fund/United Negro College Fund
United States Department of Education
United States Student Association
US Public Interest Research Group

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University Continuing Education Association

    As stated in the committee protocols, consensus means that there 
must be no dissent by any member in order for the committee to be 
considered to have reached agreement. Consensus was reached on all of 
the proposed regulations in this document.

Proposed SLEAP Regulations

    The 1998 Amendments added a new section 415E to subpart 4 of Title 
IV of the HEA to establish the SLEAP Program. The SLEAP Program is an 
additional component of the Leveraging Educational Assistance 
Partnership (LEAP) Program, which was formerly known as the State 
Student Incentive Grant (SSIG) Program. The SLEAP Program was created 
by Congress to provide incentive grants to States to assist them in 
providing financial assistance to eligible needy postsecondary students 
and services to eligible needy preschool, elementary school, and 
secondary school students.
    These proposed SLEAP Program regulations were developed as a result 
of the new statutory provisions in the HEA that created the SLEAP 
Program. All of the proposed regulations support the specific SLEAP 
provisions in the HEA, including the requirement that every LEAP 
statutory provision that is not inconsistent with a specific SLEAP 
provision applies to the SLEAP Program. The proposed SLEAP Program 
regulations are presented under the reserved subpart B in title 34 of 
the Code of Federal Regulations (CFR) by amending part 692 (LEAP 
Program regulations).

Significant Proposed Regulations

    We discuss issues under the sections of the proposed regulations to 
which they pertain. Generally, we do not address proposed regulatory 
provisions that are technical or otherwise minor in effect.

Section 692.53  What Requirements Must a State Satisfy to receive SLEAP 
Program Funds?

    Proposed Sec. 692.53 specifies the requirements that a State must 
meet to receive funds under the SLEAP Program. The proposed regulations 
provide that the State must participate in the LEAP Program to be able 
to receive SLEAP Program funds for a specific fiscal year and thus, 
meet all the requirements under the LEAP Program. The State is required 
to submit a SLEAP application in accordance with proposed Sec. 692.60 
in addition to satisfying the other requirements discussed later under 
that section.
    Further, the proposed regulations require the State to have a SLEAP 
Program that provides assistance only to eligible students as discussed 
later under proposed Sec. 692.54. Under the proposed regulations, the 
SLEAP Program must be administered by the same single State agency that 
administers the LEAP Program. That agency would have to submit all 
required SLEAP Program reports. These reports include an annual 
performance report detailing how the Federal dollars and non-Federal 
dollars were expended for the SLEAP Program. The proposed regulations 
also require that the State's SLEAP Program not allow any student or 
parent to be charged a fee that is payable to any organization, other 
than the State, for the collection of information needed to determine 
financial need.
    A State's SLEAP Program that gives financial assistance to 
postsecondary students must ensure that all public and private 
nonprofit institutions of higher education and all postsecondary 
vocational institutions in the State are eligible to participate in the 
SLEAP Program unless the participation of certain types of institutions 
is in violation of the constitution of the State or a State statute 
enacted prior to October 1, 1978. If the State awards funds to 
independent students or less-than-full-time students enrolled in an 
institution of higher education, the proposed regulations require that 
the State's SLEAP Program for postsecondary students ensure that a 
reasonable portion of the State's SLEAP allocation be awarded to those 
students.

Section 692.54  What Eligibility Requirements Must a Student Satisfy to 
Participate in the SLEAP Program?

    Proposed Sec. 692.54 specifies the eligibility requirements that 
postsecondary students must meet to receive SLEAP financial assistance 
and non-postsecondary students must meet to receive services under the 
SLEAP Program. This proposed regulation, by referencing Sec. 692.40, 
requires a postsecondary student to meet the relevant eligibility 
requirements contained in Sec. 668.32 to receive SLEAP financial 
assistance. These include, among other things, the requirements that 
the student:
     Be a regular student;
     Not be enrolled in either an elementary or secondary 
school;
     Satisfy citizenship and residency requirements;
     Maintain satisfactory progress;
     Not be in default on a title IV, HEA program loan;
     Not owe a title IV, HEA overpayment; and
     Satisfy the Selective Service registration requirements.
    The proposed regulation, by referencing Sec. 692.40, requires the 
postsecondary student to also demonstrate financial need according to a 
system the State establishes and that we approve. This would be the 
same requirement that exists under the LEAP Program for having an 
approved system for determining need. To determine financial need, the 
State may use one of the following systems:
     A system that uses part F of title IV of the HEA;
     The State's own need analysis system, if approved by the 
Secretary; or
     A combination of these systems, if approved by the 
Secretary.
    To receive program services under the SLEAP Program, the proposed 
regulations require a preschool, elementary school, or secondary school 
student to meet the relevant citizenship and residency requirements 
contained in Sec. 668.33, and demonstrate financial need as determined 
by the State. The State would not need to receive our approval of the 
system it uses to determine the financial need of these non-
postsecondary students under the proposed regulations.

Section 692.60  What Must a State Do To Receive an Allotment Under the 
SLEAP Program?

    Proposed Sec. 692.60 specifies the procedures that a State must 
follow to receive a SLEAP allotment. A State is required to submit an 
application for each fiscal year for which it wants to participate in 
the SLEAP Program. The application must be submitted by the same single 
State agency that administers the State's LEAP Program. In the 
application to participate in the SLEAP Program, the State is 
responsible for identifying the authorized activities, included in 
Sec. 692.71, that it will fund under the SLEAP Program.
    Under the proposed regulations, the State must satisfy the SLEAP 
maintenance-of-effort (MOE) requirement and assure us of that fact on 
its application. To satisfy the SLEAP MOE requirement, a State 
receiving SLEAP funding for a fiscal year would have to expend non-
Federal funds, in total or per student, in the preceding fiscal year 
for authorized activities that were not less than it expended in the 
second preceding fiscal year. Note that although the statute and 
regulations refer to funding in terms of a fiscal year, States receive 
and award LEAP and

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SLEAP funds operationally on an award year (July 1 through June 30) 
basis. Therefore, the States' MOE and matching requirements are also 
measured on an award year basis.
    For example, a State wants to participate in the SLEAP Program for 
the 2000-2001 award year. In the 1999-2000 award year the total State 
expenditures for authorized SLEAP activities totaled $150,000. In the 
1998-1999 award year, the State spent $100,000 on the authorized 
activities. The State expenditures for the activities for the 1999-2000 
award year exceed the expenditures for the 1998-1999 award year and 
thus, satisfy the SLEAP MOE requirement.
    In calculating the SLEAP MOE under the proposed regulations, the 
State reports any non-Federal funds that it spends for any activity or 
program that meets the definition of any of the authorized SLEAP 
activities, even if the State does not use those funds in the SLEAP 
Program. For the purpose of the SLEAP MOE, this applies even if the 
non-Federal funds were used to match another Federal program.
    For example, if a State participates in the Gaining Early Awareness 
and Readiness for Undergraduate Programs (GEAR UP) Program, the State 
matching dollars for GEAR UP would be included as part of the State's 
SLEAP MOE because GEAR UP activities meet the definition of SLEAP 
authorized activity seven, which includes early intervention and 
mentoring programs. However, those State matching dollars used for GEAR 
UP, while acceptable for SLEAP MOE purposes, can not be used as 
matching dollars for any of the SLEAP authorized activities, because 
those State dollars are already used to match another Federal program 
which would be in violation of Sec. 80.24 of the Education Department 
General Administrative Regulations (EDGAR). As another example, assume 
that a State awards teaching scholarships to students, which 
corresponds with SLEAP activity five, but does not use those funds as 
matching dollars for the SLEAP Program. Those State dollars for 
teaching scholarships would still be included in the State's SLEAP MOE.
    The proposed regulations also require that the Federal SLEAP 
Program funds be matched with non-Federal funds. For every Federal 
SLEAP dollar a State spends, it must spend at least two matching 
dollars from non-Federal funds. A State may use any non-Federal funds 
that are spent for any of the authorized SLEAP activities, as long as 
those funds are not also being used to match other Federal programs. 
Non-Federal funds include, but are not limited to, State-appropriated 
funds or privately donated funds. The proposed regulations allow the 
Federal SLEAP dollars to be spent by the State for one authorized SLEAP 
activity and the non-Federal funds to be spent for a different 
authorized SLEAP activity.

Section 692.70  How Does the Secretary Allot Funds to the States?

    Proposed Sec. 692.70, by referencing Sec. 692.10, specifies the 
formula used to allocate SLEAP funds to the participating States. Under 
the proposed regulations, Federal SLEAP funds are allocated to each 
State in the SLEAP Program based on the same formulas used for the LEAP 
Program. The LEAP and SLEAP programs are funded under one 
appropriation. The initial $30 million of the appropriation funds the 
LEAP Program. Any amount in excess of the initial $30 million must be 
used to carry out authorized activities under the SLEAP Program.
    The proposed regulations require that a State's SLEAP allocation 
from the first $76,452,287 appropriated for both LEAP and SLEAP be 
calculated by a formula that provides a statutory hold-harmless 
provision based on the funds allocated as SSIG funds to the State for 
the 1979 fiscal year. The formula would calculate the State's SLEAP 
portion of the total LEAP and SLEAP appropriation that does not exceed 
the $76,452,287 amount that was provided to States in the 1979 fiscal 
year as follows:
[GRAPHIC] [TIFF OMITTED] TP27JY00.055

    When the total LEAP and SLEAP appropriation exceeds $76,452,287, 
the amount of the appropriation that exceeds $76,452,287 also has to be 
allocated to each participating State for its SLEAP Program. The 
proposed regulations require that a set formula be used to calculate 
the additional SLEAP amount that must be added to the results of the 
formula shown above to derive the total SLEAP allocation for a State. 
To determine this portion of the SLEAP allocation, when applicable, the 
formula is as follows:
[GRAPHIC] [TIFF OMITTED] TP27JY00.056

Section 692.71  What Activities May be Funded Under the SLEAP Program?

    Proposed Sec. 692.71 specifies the authorized SLEAP activities for 
which a State may use SLEAP Program funds. The authorized activities 
assist States in providing assistance to eligible students who 
demonstrate financial need. The proposed regulations allow a State to 
implement one or more of the activities under the SLEAP Program. Under 
the proposed regulations, a State may use SLEAP funds to do one or more 
of the following:
    (1) LEAP Grant Supplement--Supplement its LEAP Program by 
increasing LEAP grant amounts for postsecondary students who 
demonstrate financial need (including exceeding the $5,000 maximum LEAP 
grant limit), or by increasing the number of LEAP recipients. This 
supplement may consist of Federal SLEAP funds or SLEAP matching funds, 
or both, and is accounted for and reported under the SLEAP Program and 
not the LEAP Program.

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    (2) Transition Programs--Implement transition programs for students 
who demonstrate financial need and are enrolled in secondary school or 
who have graduated from secondary school and are accepted for 
enrollment in a postsecondary institution.
    (3) Aid Programs for Critical Careers--Award financial aid to 
postsecondary students who demonstrate financial need and wish to enter 
careers in information technology, or other fields of study that the 
State determines are critical to the State's workforce needs.
    (4) Community Service Work-Study Jobs--Pay wages or salaries for 
community service work-study jobs to postsecondary students who 
demonstrate financial need.
    (5) Teaching Scholarship Programs--Establish a postsecondary 
scholarship program that makes awards to students who demonstrate 
financial need and wish to become teachers, and award financial aid 
from that program.
    (6) Mathematics, Computer Science, or Engineering Scholarship 
Programs--Establish a postsecondary scholarship program that makes 
awards to students who demonstrate financial need and wish to pursue a 
program of study leading to a degree in mathematics, computer science, 
or engineering, and award financial aid from that program.
    (7) Early Intervention, Mentoring, and Career Education Programs--
Implement early intervention, mentoring, and career education programs 
for preschool, elementary school, or secondary school students who 
demonstrate financial need.
    (8) Merit and Academic Scholarships--Award merit or academic 
scholarships for any field of study, including teaching, mathematics, 
computer science, and engineering to postsecondary students who 
demonstrate financial need.

Executive Order 12866

1. Potential Costs and Benefits

    Under Executive Order 12866, we have 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 we have 
determined as necessary for administering this program effectively and 
efficiently.
    In assessing the potential costs and benefits--both quantitative 
and qualitative--of this regulatory action, we have determined that the 
benefits would justify the costs.
    We have also determined that this regulatory action would not 
unduly interfere with State, local, and tribal governments in the 
exercise of their governmental functions.

2. Clarity of the Regulations

    Executive Order 12866 and the President's Memorandum of June 1, 
1998, on ``Plain Language in Government Writing'' require each agency 
to write regulations that are easy to understand.
    We invite comments on how to make these proposed regulations easier 
to understand, including answers to questions such as the following:
     Are the requirements in the proposed regulations clearly 
stated?
     Do the proposed regulations contain technical terms or 
other wording that interferes with their clarity?
     Does the format of the proposed regulations (grouping and 
order of sections, use of headings, paragraphing, etc.) aid or reduce 
their clarity?
     Would the proposed regulations be easier to understand if 
we divided them into more (but shorter) sections? (A ``section'' is 
preceded by the symbol ``Sec. '' and a numbered heading; for example, 
Sec. 692.70 How does the Secretary allot funds to the States?)
     Could the description of the proposed regulations in the 
SUPPLEMENTARY INFORMATION section of this preamble be more helpful in 
making the proposed regulations easier to understand? If so, how?
     What else could we do to make the proposed regulations 
easier to understand?
    Send any comments that concern how the Department could make these 
proposed regulations easier to understand to the person listed in the 
ADDRESSES section of the preamble.

Regulatory Flexibility Act Certification

    We certify that these proposed regulations would not have a 
significant economic impact on a substantial number of small entities. 
These proposed regulations would affect institutions of higher 
education that participate in title IV, HEA programs, States, and State 
agencies. The U.S. Small Business Administration Size Standards define 
institutions as ``small entities'' if they are for-profit or nonprofit 
institutions with total annual revenue below $5,000,000 or if they are 
institutions controlled by governmental entities with populations below 
50,000. Although States and State agencies are impacted by these 
regulations, they are not defined as ``small entities'' in the 
Regulatory Flexibility Act. Therefore, these proposed regulations would 
not have a significant economic impact on small entities.

Paperwork Reduction Act of 1995

    Proposed Sec. 692.60 contains information collection requirements. 
These requirements are accounted for under OMB No. 1845-0034, the 
information collection clearance package for the application to 
participate in the SLEAP Program. Proposed Sec. 692.53 contains 
information collection requirements. These requirements will be 
accounted for in an information collection clearance package for the 
SLEAP Program performance report that will be submitted to OMB for 
review and approval. Therefore, all collection requirements found in 34 
CFR part 692 will be accounted for in the previously mentioned 
information collection clearance packages for the reports and not the 
regulations.
    Under the Paperwork Reduction Act of 1995 (44 U.S.C. 3507(d)), we 
have submitted a copy of these sections to the Office of Management and 
Budget (OMB) for its review.
    Collection of information: Special Leveraging Educational 
Assistance Partnership Program--Sec. 692.60--What must a State do to 
receive an allotment under the SLEAP Program?--Application to 
Participate in the Special Leveraging Educational Assistance 
Partnership (SLEAP) Program--OMB No. 1845-0034. Section 415C(a) of the 
HEA requires a State that desires to obtain a payment under this 
program for any fiscal year to submit an annual application containing 
information necessary to enable us to carry out the functions under 
this program. The current application is approved for use through 
September 30, 2000. A new form will be developed and submitted to OMB 
for approval.
    Section 76.720 of EDGAR requires a State to submit an annual 
performance report, unless we allow less frequent reporting. Although a 
performance report has not currently been developed for the SLEAP 
Program, we expect to have a form approved and available for 
distribution to participating States before October 1, 2001, the 
deadline for States to report their 2000-2001 award year SLEAP Program 
expenditures.
    The annual Application to Participate in the SLEAP Program provides 
data used in program management. The complete application shows State 
qualifications for Federal funds, including the matching requirements, 
MOE capability, and methods of determining student financial need. With 
its signed assurances, the document commits a State to administer the 
Federal funds and State matching funds in compliance with the statute.

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    If you want to comment on the information collection requirements, 
please send your comments to the Office of Information and Regulatory 
Affairs, OMB, room 10235, New Executive Office Building, Washington, DC 
20503; Attention: Desk Officer for U.S. Department of Education. You 
may also send a copy of these comments to the Department representative 
named in the ADDRESSES section of this preamble.
    We consider your comments on these proposed collections of 
information in--
     Deciding whether the proposed collections are necessary 
for the proper performance of our functions, including whether the 
information will have practical use;
     Evaluating the accuracy of our estimate of the burden of 
the proposed collections, including the validity of our methodology and 
assumptions;
     Enhancing the quality, usefulness, and clarity of the 
information we collect; and
     Minimizing the burden on those who must respond. This 
includes exploring the use of appropriate automated, electronic, 
mechanical, or other technological collection techniques or other forms 
of information technology; e.g., permitting electronic submission of 
responses.
    OMB is required to make a decision concerning the collection of 
information contained in these proposed regulations between 30 and 60 
days after publication of this document in the Federal Register. 
Therefore, to ensure that OMB gives your comments full consideration, 
it is important that OMB receive the comments within 30 days of 
publication. This does not affect the deadline for your comments to us 
on the proposed regulations.

Intergovernmental Review

    The SLEAP Program is subject to Executive Order 12372 and the 
regulations in 34 CFR part 79. One of the objectives of the Executive 
order is to foster an intergovernmental partnership and a strengthened 
federalism. The Executive order relies on processes developed by State 
and local governments for coordination and review of proposed Federal 
financial assistance.
    This document provides early notification of our specific plans and 
actions for this program.

Assessment of Educational Impact

    We particularly request comments on whether these proposed 
regulations would require transmission of information that any other 
agency or authority of the United States gathers or makes available.

Electronic Access to This Document

    You may view this document in text or Adobe Portable Document 
Format (PDF) on the Internet at the following sites:

http://ocfo.ed.gov/fedreg.htm
http://ifap.ed.gov/csb_html/fedlreg.htm

    To use PDF you must have Adobe Acrobat Reader Program, which is 
available free at the first of the previous sites. If you have 
questions about using PDF, call the U.S. Government Printing Office 
(GPO), toll free, at 1-888-293-6498; or in the Washington, DC area at 
(202) 512-1530.

    Note: The official version of this document is the document 
published in the Federal Register. Free Internet access to the 
official edition of the Federal Register and the Code of Federal 
Regulations is available on GPO Access at: http://www.access.gpo.gov/nara/index.html

(Catalog of Federal Domestic Assistance Number: 84.069 Special 
Leveraging Educational Assistance Partnership Program)

List of Subjects in 34 CFR Part 692

    Grant programs--education, Postsecondary education, State 
administered--education, Student aid--education, Reporting and 
recordkeeping requirements.

    Dated: July 19, 2000.
Richard W. Riley,
Secretary of Education.
    For the reasons stated in the preamble, the Secretary proposes to 
amend title 34 of the Code of Federal Regulations by amending part 692 
as follows:

PART 692--LEVERAGING EDUCATIONAL ASSISTANCE PARTNERSHIP PROGRAM

    1. The authority citation for part 692 continues to read as 
follows:

    Authority: 20 U.S.C. 1070c through c-4, unless otherwise noted.

    2. Subpart B is revised to read as follows:
Subpart B--Special Leveraging Educational Assistance Partnership 
Program

General

Sec.
692.50   What is the Special Leveraging Educational Assistance 
Partnership Program?
692.51   What other regulations apply to the SLEAP Program?
692.52   What definitions apply to the SLEAP Program?
692.53   What requirements must a State satisfy to receive SLEAP 
Program funds?
692.54   What eligibility requirements must a student satisfy to 
participate in the SLEAP Program?

How Does a State Apply to Participate in the SLEAP Program?

692.60   What must a State do to receive an allotment under the 
SLEAP Program?

What Is the Amount of Assistance and How May It Be Used?

692.70   How does the Secretary allot funds to the States?
692.71   What activities may be funded under the SLEAP Program?

How Does a State Administer Its Community Service Work-Study Program?

692.80   How does a State administer its community service work-
study program?

Subpart B--Special Leveraging Educational Assistance Partnership 
Program

General


Sec. 692.50  What is the Special Leveraging Educational Assistance 
Partnership Program?

    The Special Leveraging Educational Assistance Partnership (SLEAP) 
Program assists States in providing--
    (a) Grants, scholarships, and community service work-study 
assistance to eligible postsecondary education students who demonstrate 
financial need;
    (b) Assistance to fund early intervention, mentoring, and career 
education programs for eligible students enrolled in preschool, 
elementary school, or secondary school who demonstrate financial need; 
and
    (c) Assistance to fund transition programs for eligible students 
enrolled in secondary school who demonstrate financial need.

(Authority: 20 U.S.C. 1070c-3a)


Sec. 692.51  What other regulations apply to the SLEAP Program?

    The regulations listed in Sec. 692.3 also apply to the SLEAP 
Program.

(Authority: 20 U.S.C. 1070c-3a)

Sec. 692.52  What definitions apply to the SLEAP Program?

    The following definitions apply to the SLEAP Program:
    (a) The definitions listed in Sec. 692.4.
    (b) The definitions of the following terms in 34 CFR 77.1 (EDGAR):


Elementary school.

Preschool.

Secondary school.

(Authority: 20 U.S.C. 1070c-3a)


Sec. 692.53  What requirements must a State satisfy to receive SLEAP 
Program funds?

    To receive SLEAP Program funds for any fiscal year, a State must--
    (a) Participate in the LEAP Program;
    (b) Meet the requirements in Sec. 692.60; and

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    (c) Have a program that--
    (1) Provides assistance only to students who meet the eligibility 
requirements in Sec. 692.54;
    (2) Satisfies the requirements in Secs. 692.21(a) and (k); and
    (3)(i) Satisfies the requirements in Secs. 692.21(e), (f), (g), and 
(j), if that program provides students with postsecondary education 
assistance; or
    (ii) Provides that no student or parent may be charged a fee that 
is payable to an organization other than the State for the purpose of 
collecting data to make a determination of financial need for 
preschool, elementary, or secondary school students.

(Authority: 20 U.S.C. 1070c-3a)

Sec. 692.54  What eligibility requirements must a student satisfy to 
participate in the SLEAP Program?

    (a) To receive postsecondary financial assistance under the SLEAP 
Program, a student must meet the eligibility requirements contained in 
Sec. 692.40.
    (b) To receive early intervention, mentoring, career education or 
transition program services under the SLEAP Program, a preschool, 
elementary, or secondary school student must--
    (1) Meet the applicable citizenship and residency requirements in 
34 CFR 668.33; and
    (2) Demonstrate financial need as determined by the State.

(Authority: 20 U.S.C. 1070c-3a)

How Does a State Apply To Participate in the SLEAP Program?


Sec. 692.60  What must a State do to receive an allotment under the 
SLEAP Program?

    To receive an allotment under the SLEAP Program, a State must--
    (a) Submit an application in accordance with the provisions in 
Sec. 692.20;
    (b) Identify the activities in Sec. 692.71 that it plans to carry 
out;
    (c) Provide an assurance that for the fiscal year prior to the 
fiscal year for which the State is requesting Federal funds, the amount 
the State expended from non-Federal sources per student, or the 
aggregate amount the State expended, for all the authorized activities 
in Sec. 692.71 will be no less than the amount the State expended from 
non-Federal sources per student, or in the aggregate, for those 
activities for the second fiscal year prior to the fiscal year for 
which the State is requesting Federal funds; and
    (d) Ensure that the Federal share will not exceed one-third of the 
total funds expended under the SLEAP Program.

(Authority: 20 U.S.C. 1070c-3a)

What Is the Amount of Assistance and How May It Be Used?


Sec. 692.70  How does the Secretary allot funds to the States?

    For each fiscal year, the Secretary allots to each eligible State 
that applies for SLEAP funds an amount in accordance with the 
provisions in Sec. 692.10.

(Authority: 20 U.S.C. 1070c-3a)

Sec. 692.71  What activities may be funded under the SLEAP Program?

    A State may use the funds it receives under the SLEAP Program to 
implement one or more of the following:
    (a) Increase the dollar amount of grants awarded under the LEAP 
Program to eligible students who demonstrate financial need as 
determined in Sec. 692.41.
    (b) Carry out transition programs from secondary school to 
postsecondary education for eligible students who demonstrate financial 
need as determined by the State.
    (c) Carry out a financial aid program for eligible students who 
demonstrate financial need as determined in Sec. 692.41 and who wish to 
enter careers in information technology or other fields of study 
determined by the State to be critical to the State's workforce needs.
    (d) Make funds available for community service work-study 
activities for eligible students who demonstrate financial need as 
determined in Sec. 692.41.
    (e) Create a postsecondary scholarship program for eligible 
students who demonstrate financial need as determined in Sec. 692.41 
and who wish to enter teaching.
    (f) Create a scholarship program for eligible students who 
demonstrate financial need as determined in Sec. 692.41 and who wish to 
enter a program of study leading to a degree in mathematics, computer 
science, or engineering.
    (g) Carry out early intervention programs, mentoring programs, and 
career education programs for eligible students who demonstrate 
financial need as determined by the State.
    (h) Award merit or academic scholarships to eligible students who 
demonstrate financial need as determined in Sec. 692.41.

(Authority: 20 U.S.C. 1070c-3a)

How Does a State Administer Its Community Service Work-Study 
Program?


Sec. 692.80  How does a State administer its community service work-
study program?

    When administering its community service work-study program, a 
State must follow the provisions in Sec. 692.30, other than the 
provisions of paragraph (a)(1) of that section.

(Authority: 20 U.S.C. 1070c-3a)

[FR Doc. 00-18971 Filed 7-26-00; 8:45 am]
BILLING CODE 4000-01-U