[Federal Register Volume 65, Number 185 (Friday, September 22, 2000)]
[Notices]
[Pages 57322-57326]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-24341]


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DEPARTMENT OF EDUCATION


Federal Student Financial Assistance Programs; Distance Education 
Demonstration Program

AGENCY: Department of Education.

ACTION: Notice inviting applications for participation in the Distance 
Education Demonstration Program and notice of regional meetings to 
provide technical assistance to parties interested in participating in 
the Distance Education Demonstration Program.

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SUMMARY: The Secretary of Education invites institutions of higher 
education (institutions), systems of institutions, and consortia of 
institutions to submit applications to participate in the Distance 
Education Demonstration Program authorized under section 486 of title 
IV of the Higher Education Act of 1965, as amended (HEA). Under the 
Distance Education Demonstration Program, selected institutions 
providing distance education programs may receive waivers of specific 
statutory and regulatory provisions governing the student financial 
assistance programs authorized under Title IV of the HEA.
    Instructions for Submitting an Application: Elements to be included 
in an application are described in this notice. There is no application 
form per se for the program. Applications should be submitted by 
electronic mail or in hard copy to the addresses below. Applicants are 
urged to submit applications only by electronic mail, to the e-mail 
address below. Applications should clearly designate a contact person, 
and the telephone number and the e-mail and street address of the 
contact person.
    Applications submitted by electronic mail should be submitted in 
Microsoft Word version 7 or lower or WordPerfect version 7, 8, or 9.
    To facilitate the application process, the Secretary of Education 
will conduct regional meetings in the District of Columbia (October 18, 
2000); Albuquerque, New Mexico (November 1, 2000); Chicago, Illinois 
(November 9, 2000) and Seattle, Washington (November 29, 2000) to 
provide advice and technical assistance to potential applicants for 
participation in the Distance Education Demonstration Program. Further 
information concerning these meetings may be found at the end of this 
Notice and at the Distance Education Demonstration Program web site:

http://www.ed.gov/offices/OPE/PPI/DistEd/


DATES: Applications must be postmarked or submitted electronically on 
or before February 16, 2001.

ADDRESSES: Applications submitted electronically. Institutions must 
submit applications by e-mail by 5:00 p.m. Eastern time on February 16, 
2001 to the following address: [email protected]
    Applications submitted by mail: Hard copy applications must be sent 
to Marianne R. Phelps, U.S. Department of Education, 1990 K Street NW., 
Room 7112, Washington, DC 20006.
    An institution must show proof of mailing these documents by 
February 16, 2001. Proof of mailing consists of one of the following: 
(1) A legible mail receipt with the date of mailing stamped by the U.S. 
Postal Service, (2) a legibly dated U.S. Postal Service postmark, (3) a 
dated shipping label, invoice, or receipt from a commercial carrier, or 
(4) any other proof of mailing acceptable to the U.S. Secretary of 
Education.
    If these documents are sent through the U.S. Postal Service, the 
Secretary does not accept either of the following as proof of mailing: 
(1) A private metered postmark, or (2) a mail receipt that is not dated 
by the U.S. Postal Service. Institutions should note that the U.S. 
Postal Service does not uniformly provide a dated postmark. Before 
relying on this method, an institution should check with its local post 
office. You are encouraged to use certified or at least first-class 
mail.
    Applications delivered by hand. Hand-delivered applications must be 
taken to Marianne R. Phelps, U.S. Department of Education, 1990 K 
Street NW., Room 7112, Washington, DC 20006.
    Applications that are hand-delivered will be accepted between 9:00 
a.m. and 5:00 p.m. daily (Eastern time), except Saturdays, Sundays, and 
Federal holidays. Applications must be received by 5:00 p.m. on 
February 16, 2001.

FOR FURTHER INFORMATION CONTACT: Marianne R. Phelps at (202) 502-7713 
or at [email protected] by e-mail. Information concerning the program 
can also be found on the Distance Education Demonstration Program web 
site:

http://www.ed.gov/offices/OPE/PPI/DistEd/

    Individuals who use a telecommunications device for the deaf

[[Page 57323]]

(TDD) 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 in the preceding 
paragraph.

SUPPLEMENTARY INFORMATION:

Background and Purpose of the Distance Education Demonstration 
Program

    Over the past few years, there has been rapid growth in the number 
of institutions providing courses and degree programs in various modes 
of ``distance education.'' For purposes of the Distance Education 
Demonstration Program and this notice, ``distance education'' is 
defined as an educational process that is characterized by the 
separation, in time or place, between instructor and student. This 
process may include courses offered principally through the use of 
television, audio, or computer transmission, such as open broadcast, 
closed circuit, cable, microwave, or satellite transmission; audio or 
computer conferencing; video cassettes or discs; or correspondence.
    This growth in distance education has occurred in response to 
increasing demand from students who are restricted in their ability to 
enroll in more traditional programs, including working adults, parents, 
people who live in rural communities, and students with disabilities. 
Another reason for this growth is the potential for cost control. 
Distance education is attractive to institutions that seek to avoid 
large investments in new facilities to meet student demand and to 
students who can complete their educational programs more economically 
using distance education for all or part of their studies. 
Additionally, through consortia and other agreements among institutions 
that provide distance education, many students are able to take 
advantage of a richer selection of course offerings tailored to their 
individual needs than are available at the institutions where they are 
enrolled.
    Distance education has been available to postsecondary education 
students for many years. More recently, advancements in technology have 
provided additional instructional opportunities through the use of two 
way video and the Internet to delivery instruction. The richness of the 
available technology has made the delivery of high quality distance 
education possible and desirable for many more postsecondary education 
programs and students.
    Currently, some statutory provisions defining institutional 
eligibility for the Title IV, HEA programs may limit the circumstances 
in which Title IV, HEA program funds can be provided to students 
enrolled in distance education. For example, institutions that offer 
more than 50 percent of their courses via distance education or enroll 
more than 50 percent of their students in distance education programs 
(hereafter referred to as ``the 50 percent rules'') are not eligible to 
participate in the Title IV, HEA programs.
    Other statutory provisions, such as those dealing with the length 
of an academic year and the minimum length of an eligible vocational 
program, are based on the patterns and structure of ``traditional'' on-
campus education. As such, they can be burdensome and difficult to 
apply to distance education programs. They may also limit institutions 
from structuring programs that may best meet the needs of distance 
education students, institutions, and systems and consortia of such 
institutions. Similar problems may arise with regard to regulatory 
provisions implementing part G of Title IV of the HEA.
    Many of these requirements were put in place to address abuses in 
the Title IV, HEA programs and until recently did not have much effect 
on institutions offering distance education programs or courses or 
their students' eligibility for aid. However, at this point in the 
evolution of distance education programs, changes to student aid 
requirements may be necessary to allow students to take full advantage 
of the opportunities distance education provides and to make it 
possible for institutions to fully utilize the potential technology now 
offers to enhance distance education courses and programs. On the other 
hand, restructuring aid to fit these new patterns presents some risks 
as well as opportunities, and care in designing alternatives to the 
current student aid requirements is necessary to assure continued 
integrity in the Title IV, HEA programs.
    In response to these dual concerns, in 1998 Congress enacted the 
Distance Education Demonstration Program. As described in section 
486(a) of the HEA, the purpose of the program is to--
    (1) Allow demonstration programs that are strictly monitored by the 
Department of Education to test the quality and viability of expanded 
distance education programs currently restricted under this Act;
    (2) Provide for increased student access to higher education 
through distance education programs; and
    (3) Help determine the--
    (A) Most effective means of delivering quality education via 
distance education course offerings;
    (B) Specific statutory and regulatory requirements which should be 
altered to provide greater access to high quality distance education 
programs; and
    (C) Appropriate level of Federal assistance for students enrolled 
in distance education programs.
    Under the Distance Demonstration Program, participants may offer 
Title IV, HEA program funds to students enrolled in educational 
programs utilizing distance education delivery methods for all or a 
portion of their classes without being subject to certain statutory and 
regulatory provisions, which the Secretary may waive, upon their 
request. The purpose of these waivers is to test new ways of 
administering the Federal student assistance programs and to consider 
how the law and regulations might be altered to allow for expansion of 
aid to distance students and still ensure program integrity.
    The legislation creating the program authorized the Secretary to 
select, from among eligible applicants, up to a total of 15 
institutions, systems of institutions, or consortia of institutions to 
begin participation in the first year of the program. (For these 
purposes, a system of institutions could be a group of institutions 
with a common governing board. An example would be a community college 
system or a group of private institutions owned by the same 
corporation. A consortium of institutions could be two or more 
institutions that have agreed to collaborate on a common effort such as 
sharing distance education courses or a two-year and four-year 
institution cooperating to offer a bachelor's degree completion 
program.) The 15 participants for the first year of the program were 
selected in May of 1999 and began participation on July 1, 1999.
    The Secretary is authorized to select, from among eligible 
applicants, up to a total of 35 additional institutions, systems of 
institutions, or consortia of institutions to begin participation in 
the third year of the program, which will commence on July 1, 2001. The 
Secretary anticipates that these additional institutions, systems or 
consortia selected will continue to participate for three years. 
Participation, of course, will be conditioned upon their meeting the 
requirements of the Distance Education Demonstration Program and 
continued participation in Title IV, HEA programs. Institutions 
desiring to withdraw from the Distance Education Demonstration Program 
may do so without jeopardy to their

[[Page 57324]]

participation in Title IV HEA programs. Also, the scope of the 
participation, such as the specific distance education programs 
included and waivers provided, may be modified as agreed upon by the 
Secretary and the participant, to allow for changes in the programs 
offered, the modes of delivery used, the size of participants' distance 
programs, or other changes desired by the Secretary or the participant 
as experience is gained in the program.
    The Department administers this program through an implementation 
team consisting of staff from various offices within the Department. 
The Department recognizes the importance of identifying and addressing 
any problems that arise during the course of the demonstrations. It 
facilitates communication among participants and works with 
institutions to provide technical assistance throughout the 
demonstrations, beginning with the application process. Departmental 
staff with responsibility for monitoring compliance with Title IV 
program requirements are represented on the implementation team and 
monitor compliance with the requirements of the Distance Education 
Demonstration Program.
    The Department also works closely with accrediting agencies and 
States to determine how their respective roles contribute to assuring 
quality and integrity. Accrediting agencies play an important role in 
monitoring the demonstration programs, consistent with their 
responsibilities. Where State requirements are relevant to distance 
education programs, the Department works with States to determine how 
their monitoring role assists in insuring program integrity.
    The participants must agree to provide data and information that 
will assist the Secretary in evaluating the Distance Education 
Demonstration Program and in reporting to Congress as required by the 
statute. The data and information provided by participants will assist 
the Secretary in determining whether statutory and regulatory changes 
might be needed to support the growth of quality distance education 
courses and programs and the appropriate level of Federal assistance 
for students enrolled in distance education programs, two of the 
purposes of the program that are specified in the statute. A copy of 
the form containing the data collection requirements can be found on 
the program Web site.
    The program is also designed to examine ways to assure the 
integrity of Title IV, HEA programs in the context of distance 
education. This examination is accomplished principally through the 
close monitoring of participants' administration of Title IV, HEA 
programs.

Eligible Applicants

    The following institutions are eligible to apply to participate in 
the Distance Education Demonstration Program:
    (1) Institutions located in the United States that participate in 
the Title IV, HEA programs; and
    (2) Institutions located in the United States that provide a two-
year program that leads to an associate degree or a four-year program 
that leads to a baccalaureate or higher degree and would be eligible to 
participate in the Title IV, HEA programs but for the fact that they do 
not meet one or both of the 50 percent rules.
    In addition, systems and consortia of these institutions are 
eligible to participate in the program.

Statutory and Regulatory Provisions That May Be Waived

    The Secretary may waive statutory and regulatory provisions. To 
obtain a waiver, an institution must request the waiver in its 
application to participate in the program and must provide reasons for 
the waiver. Where possible, the applicant should suggest an alternative 
that is designed to meet the same objectives as those achieved by the 
waived statutory or regulatory provision. For example, if an applicant 
seeks to waive the requirement that students must achieve satisfactory 
academic progress as defined in the regulations, the applicant should 
suggest an alternative means to ensure that Federal student aid funds 
are provided only to students who are making progress towards a degree 
or certificate. An applicant need not include an alternative approach 
with regard to a request to waive one or both of the 50 percent rules.

Statutory Provisions

    The Secretary may waive the following HEA statutory provisions:
     Section 102(a)(3)(A). This section makes an otherwise 
eligible institution ineligible if more than 50 percent of its courses 
are offered by correspondence and telecommunication.
     Section 102(a)(3)(B). This section makes an otherwise 
eligible institution ineligible if 50 percent or more of its students 
are enrolled in correspondence or telecommunications courses.
     Section 484(l)(1). This section defines a 
telecommunications student at an institution as a correspondence 
student if 50 percent or more of the institution's courses are offered 
by correspondence or telecommunication.
     The required minimum number of weeks of instruction 
contained in section 481(a). This section provides that an academic 
year must require at least 30 weeks of instructional time.
     The required minimum number of weeks of instruction 
contained in section 481(b). This section provides that an eligible 
vocational program must be provided during a minimum of 15 weeks, or in 
limited circumstances, 10 weeks.

Regulatory Provisions

    In addition to the aforementioned statutory provisions, the 
Secretary may waive the regulatory provisions implementing part G of 
the HEA which inhibit the operation of quality distance education 
programs. Part G consists of sections 481 through 493B of the HEA. 
These sections contain numerous provisions dealing with the Title IV, 
HEA programs. In general, the regulations implementing these provisions 
are contained in 34 CFR part 668. (Under the Distance Education 
Demonstration Program, the Secretary is authorized to waive any 
regulations governing part F of Title IV, which deals with need 
analysis and costs of attendance. However, the Secretary is not 
authorized to issue regulations implementing part F; therefore, there 
are no regulations to waive.)

Application Requirements

    Each application to participate in this program shall include--
    1. The name, address, and Web site address, if any, of the 
institution, system, or members of the consortium seeking to 
participate, and the name, title, mailing and e-mail addresses, and 
telephone number of a contact person for the institution, system, or 
consortium;
    2. A description of the distance education programs offered or to 
be offered for which the institution is seeking a waiver or waivers. An 
institution may request a waiver or waivers for one, several, or all of 
its distance education courses or programs. The description should 
include the types of programs, degrees or certificates offered, program 
goals, and the methods used or proposed to be used to deliver distance 
education;
    3. A description of the applicant's consultation with a recognized 
accrediting agency or agencies with respect to quality assurances for 
the distance education programs to be offered;
    4. A description of the types of students that the distance 
education

[[Page 57325]]

programs are intended to serve, (e.g., adult learners, rural 
populations, individuals with disabilities);
    5. The Title IV, HEA programs under which distance education 
students will receive funds;
    6. The specific statutory and regulatory provisions to be waived, 
the scope of each waiver, and the reason for each waiver. The applicant 
should propose an alternative to the provision or explain why no 
alternative is necessary;
    7. An assurance that the institution, system, or a consortium will 
fully cooperate with the ongoing evaluations of the program; and
    8. A statement of the goals of the institution, system, or 
consortium for participation along with the method the institution will 
use to evaluate achievement of the goals.
    In addition to the information described above, systems and 
consortia must provide the following additional information--
    1. A description of the system or consortium and the relationship 
among the members of the system or consortium, a copy of any agreement 
governing the relationship of institutions that are members of the 
system or consortium, and a list of the institutions which are members;
    2. A description of the manner in which the distance education 
programs are or will be conducted among the system and consortium 
members particularly as that manner is related to the waiver request; 
and
    3. The manner in which Title IV, HEA program funds will be 
administered for the students in the distance education programs. (This 
would include such matters as the disbursement procedures that would be 
followed, the definition of an academic year that would be used, how 
attendance would be monitored, and the satisfactory academic progress 
rules that would be followed.)

Selection of Participants

    In selecting applicants to participate in the program, the 
Secretary will take into account the--
    1. Number and quality of applications received;
    2. Department of Education's capacity to oversee and monitor the 
applicant's participation;
    3. Applicant's financial responsibility, administrative capability, 
and the program or programs being offered via distance education; and
    4. Necessity of including a diverse group of participating 
institutions vis-a-vis size, mission, and geographic distribution.
    As part of the selection process, the Department of Education will 
screen the applications to ensure that applicants are eligible. Then, 
outside reviewers will recommend the best applications given the 
statutory criteria. The Secretary will make final selections, based on 
the recommendations of the outside reviewers and the criteria listed in 
statute.

Evaluations

    The HEA requires the Secretary to submit reports to Congress 
evaluating the Distance Education Demonstration Program annually and 
eighteen months after the initiation of the program. As specified in 
the Act, the evaluations are to include the following:
    1. The extent to which the institution, system or consortium has 
met the goals set forth in its application to the Secretary, including 
the measures of program quality assurance.
    2. The number and types of students participating in the programs 
offered, including the progress of participating students toward 
recognized certificates or degrees and the extent to which 
participation in such programs increased.
    3. Issues related to student financial assistance for distance 
education.
    4. Effective technologies for delivering distance education course 
offerings.
    5. The extent to which statutory or regulatory requirements not 
waived under the program present difficulties for students or 
institutions.
    To assist the Secretary in conducting such evaluations, 
participants in the distance education demonstration programs will be 
required to provide information to the Secretary, such as: course level 
detail regarding their offerings, the degrees or certificates awarded 
for successful completion, data on persistence and completion, data 
regarding student demographics, information regarding tuition and fees 
charged by the participant, program design and use of technology, 
information regarding the educational environment and student support, 
and student satisfaction surveys.

Guidance

    The guidance provided below is intended to assist applicants in 
determining what information they may wish to include in their 
applications. This guidance is non-binding and does not constitute 
criteria for selection. Applications which do not include the 
information suggested in the guidance will be considered on the same 
basis as applications which include all or part of that information.
    1. Applicants should consider describing the ways that they think 
their proposals will assist the Department in determining new ways of 
administering Federal student assistance programs that better meet the 
needs of distance students.
    2. It is important that the accrediting and State authorizing 
agencies of the institution, or institutions that comprise a consortium 
or system, are willing to collaborate with the Department to determine 
how their complementary roles can best be structured to assure quality 
and integrity in institutions' distance education programs. To this 
end, applicants for the program should provide documentation that their 
accrediting agencies and States are willing to work with the Department 
to examine the respective roles of the agencies as they relate to 
institutions' distance education programs. In that documentation, 
accrediting agencies should certify that the individual distance 
programs that the institution includes in its application are within 
the scope of the institution's accreditation, and that the agency will 
review the program at an appropriate time. Consortiums and systems 
should also provide evidence that the agency or agencies which accredit 
the schools comprising the consortium or system are willing to work 
with the Department in evaluating issues relating to the quality of 
distance education offered by the institutions as a result of their 
membership in the consortium or system.
    3. While the Department will evaluate applications using the 
statutory criteria, to the extent possible, the Department will view 
those criteria in the context of the delivery of student aid to 
distance students and any changes that are needed to facilitate that 
process. Because the delivery of student aid is so critical to 
improving access to distance education, a good application would fully 
describe the applicant's ability to fully execute its plans and specify 
waivers requested and substitutions and address fully the need for the 
waivers and substitutions.
    4. Applicants should consider establishing both quantitative and 
qualitative objectives for their participation and include in the 
application a description of how they intend to measure goal 
attainment, including measures of program quality. The Department notes 
that quantitative measures are essential for understanding goal 
attainment.
    5. A major concern of the Department is to insure that Federal 
funds in the Distance Education Demonstration Program are used 
appropriately. A good

[[Page 57326]]

application will address how the applicant plans to document student 
eligibility, including documentation of attendance.
    6. Another major concern of the Department is that an applicant be 
committed as an institution to the success of its proposed activities. 
One way for an institution to demonstrate its commitment would be for 
the institution to include with its application a letter from its chief 
executive officer (or comparable official) expressing support for the 
application and acknowledgement of the responsibilities that the 
institution would assume if it were approved. Correspondingly, in the 
case of a consortium applicant, the submission of such a letter from 
the chief executive officer (or comparable official) of each of the 
participating institutions would demonstrate such commitment.

Regional Meetings

    Interested parties are invited to attend one of four regional 
meetings where information, advice, and technical assistance will be 
provided about applying to participate in the Distance Education 
Demonstration Program and providing Federal financial aid to students 
enrolled in distance education programs. The regional meetings will 
begin with a brief description of eligibility requirements for the 
Distance Education Demonstration Program and the application and 
selection processes for this program. Individuals will then be provided 
an opportunity to ask questions regarding the application process and 
other matters relating to the Distance Education Demonstration Program. 
Department of Education staff with expertise on various issues relating 
to the Distance Education Demonstration Program will be available to 
answer these questions. Questions regarding eligibility and 
administration of Title IV, HEA student financial assistance programs 
may be relevant to institutions' interest in applying for the Distance 
Education Demonstration Program. Accordingly, during the course of the 
meeting, Department staff will also address questions that relate 
generally to the administration of aid in distance education programs.
    For each of the meetings the Department of Education has reserved a 
limited number of hotel rooms at a special per diem room rate. To 
reserve these rates (see the exception for the November meeting) be 
certain to inform the hotel that you are attending the regional 
meetings with the Department of Education. The meeting sites are 
accessible to individuals with disabilities. The Department will 
provide a sign language interpreter at each of the scheduled hearings. 
An individual with a disability who will need an auxiliary aid or 
service other than an interpreter to participate in the meeting (e.g., 
assistive listening device, or materials in an alternative format) 
should notify the contact person listed in this notice at least two 
weeks before the scheduled meeting date. Although the Department will 
attempt to meet a request received after that date, the requested 
auxiliary aid or service may not be available because of insufficient 
time to arrange it.

Dates, Times, and Locations of Regional Meetings

    1. October 18, 2000, 9 a.m. to 1 p.m., Office of Postsecondary 
Education Conference Center, 1990 K Street, NW., 8th floor, Washington, 
DC 20006. Rooms available for October 17 at Embassy Square, 2000 N 
Street, NW., Washington, DC, 20036. Call (202) 659-9000 for 
reservations. Sleeping room rate $118.00 plus taxes. Reservations must 
be made by October 1. Identify yourself as a participant in the 
Department of Education regional meeting.
    2. November 1, 2000, 9 a.m. to 1 p.m., Albuquerque, New Mexico 
prior to the annual meeting of the Western Cooperative for Educational 
Telecommunications. Hyatt Regency Hotel, 330 Tijeras NW, Albuquerque, 
NM 87102, 800-233-1234 or reserve online: http://www.hyatt.com/albuq/g-wich/index.html Reference Western Cooperative for Educational 
Telecommunications in making reservation. Sleeping room rates, single 
$118 plus taxes; double $128 plus taxes. Reservations must be made by 
September 30.
    3. November 9, 2000, 9 a.m. to 1 p.m., Chicago, Illinois, Congress 
Plaza Hotel, 520 S. Michigan Avenue, Chicago, IL 60605, 800-635-1666, 
(312) 427-3800. Sleeping room rate, $130 plus taxes. Reservations must 
be made by October 8, 2000. Identify yourself as a participant in the 
Department of Education regional meeting.
    4. November 29, 2000, 9 a.m. to 1 p.m., Seattle, Washington, 
Claremont Hotel, 2000 Fourth Avenue, Seattle, WA 98121, 877-448-8601, 
(206) 448-8600. Sleeping room rate $104 plus taxes. Reservations must 
be made by November 13. Identify yourself as a participant in the 
Department of Education regional meeting.

Electronic Access to This Document

    You may view this document, as well as all other Department of 
Education documents published in the Federal Register, in text or Adobe 
Portable Document Format (PDF) on the Internet at either of the 
following sites:

http://ocfo.ed.gov/fedreg.htm
http://www.ed.gov/news.html

To use the PDF version you must have Adobe Acrobat Reader, which is 
available free at either of the previous sites. If you have questions 
about using the PDF version, 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


    Program Authority: 20 U.S.C. 1093.

A. Lee Fritschler,
Assistant Secretary for Postsecondary Education.
[FR Doc. 00-24341 Filed 9-21-00; 8:45 am]
BILLING CODE 4000-01-P