[Federal Register Volume 65, Number 212 (Wednesday, November 1, 2000)]
[Rules and Regulations]
[Pages 65606-65609]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-27740]



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Part III





Department of Education





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34 CFR Part 692



Special Leveraging Educational Assistance Partnership Program; Final 
Rule

  Federal Register / Vol. 65, No. 212 / Wednesday, November 1, 2000 / 
Rules and Regulations  

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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: Final regulations.

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SUMMARY: These final regulations govern the new Special Leveraging 
Educational Assistance Partnership (SLEAP) Program. These regulations 
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: Effective Date: These regulations are effective July 1, 2001.
    Implementation Date: The Secretary has determined, in accordance 
with section 482(c)(2)(A) of the HEA (20 U.S.C. 1089(c)(2)(A)), that 
States may, at their discretion, choose to implement the provisions of 
these final regulations on or after November 1, 2000. For further 
information see ``Implementation Date of These Regulations'' under the 
SUPPLEMENTARY INFORMATION section of this preamble.

FOR FURTHER INFORMATION CONTACT: Ms. 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 
alternative format (e.g., Braille, large print, audiotape, or computer 
diskette) on request to the contact person listed under FOR FURTHER 
INFORMATION CONTACT.

SUPPLEMENTARY INFORMATION: These regulations implement a new program, 
the SLEAP Program, added by the 1998 Amendments. On July 27, 2000, we 
published a notice of proposed rulemaking (NPRM) in the Federal 
Register (65 FR 46324). In the NPRM, we proposed to amend the 
Leveraging Educational Assistance Partnership (LEAP) Program 
regulations (part 692) to incorporate the newly created SLEAP Program.
    In the preamble to the NPRM, we discussed the proposed regulatory 
provisions that were not of a minor or technical nature, and we will 
not repeat that discussion here. Therefore, to fully understand the 
SLEAP Program regulations, we strongly encourage a review of the NPRM 
preamble. The following list summarizes those major provisions and 
identifies the pages of the preamble to the NPRM on which the 
discussion can be found:

Section 692.53--What Requirements Must a State Satisfy To Receive SLEAP 
Program Funds?

    This section specifies the requirements that a State must meet to 
receive funds under the SLEAP Program. (page 46325)

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

    This section 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. (page 46325)

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

    This section specifies the procedures that a State must follow to 
receive a SLEAP allotment. (pages 46325-46326)

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

    This section specifies the formula used to allocate SLEAP funds to 
the participating States. (page 46326)

Section 692.71--What Activities May Be Funded Under the SLEAP Program?

    This section specifies the authorized SLEAP activities. (pages 
46326-46327)

Substantive Changes to the NPRM

    There are no differences between the proposed regulations contained 
in the NPRM and these final regulations.

Implementation Date of These Regulations

    Section 482(c) of the HEA requires that regulations affecting 
programs under Title IV of the HEA be published in final form by 
November 1 prior to the start of the award year (which begins July 1) 
in which they apply. However, that section also permits the Secretary 
to designate any regulation as one that an entity subject to the 
regulation may choose to implement earlier. If the Secretary designates 
a regulation for early implementation, he may specify when and under 
what conditions the entity may implement it. Under this authority, the 
Secretary designates Secs. 692.50 through 692.80 of the SLEAP Program 
regulations for early implementation. Upon publication, these 
regulations may be implemented by the States at their discretion.

Analysis of Comments and Changes

    The regulaions in this document were developed through the use of 
negotiated rulemaking. Section 492 of the HEA requires that, before 
publishing any proposed regulations to implement programs under Title 
IV of the HEA, the Secretary obtain public involvement in the 
development of the proposed regulations. After obtaining advice and 
recommendations, the Secretary must conduct a negotiated rulemaking 
process to develop the proposed regulations.
    These regulations were published in the Federal Register in 
proposed form on July 27, 2000, following the completion of the 
negotiated rulemaking process. The Secretary invited comments on the 
proposed regulations by September 11, and two comments were received. 
An analysis of the comments follows.
    We discuss issues under the sections of the regulations to which 
they pertain. Generally, we do not address technical and other minor 
changes--and suggested changes the law does not authorize the Secretary 
to make.

Section 692.53--What Requirements Must a State Satisfy To Receive SLEAP 
Program Funds?

    Comments: One commenter believed that a problem exists with the 
proposed SLEAP regulations in Sec. 692.53(c)(3)(i). The referenced 
regulatory provision requires the States to comply with the provisions 
of Sec. 692.21(e), (f), (g), and (j). The commenter questioned the 
reference to Sec. 692.21(f).
    The commenter indicated that some of the postsecondary authorized 
SLEAP activities target students at four-year institutions. For 
example, the commenter indicated that few community colleges have a 
teacher preparation program, yet one of the allowable activities is a 
scholarship program for eligible students who wish to become teachers. 
The commenter further pointed out that the referenced Sec. 692.21(f) 
requires that, with a limited exception, all public and private 
nonprofit institutions of higher education, including two-year 
institutions shall be eligible to participate in the SLEAP Program. The 
commenter indicated that these two provisions may be inconsistent. The 
commenter suggested that if an institution, such as a two-year 
institution, does not have a program that fits into one of the SLEAP 
activities, the State should not have to ensure that

[[Page 65607]]

students at that institution receive SLEAP funds.
    Discussion: We disagree with the commenter that some of the 
postsecondary authorized SLEAP activities are targeted to four-year 
institutions. Neither the statute nor the regulations for the SLEAP 
Program require that the student be enrolled in a four-year 
institution. The commenter used as an example a teacher preparation 
program. However, the statute and regulations refer to a scholarship 
program for eligible needy students who wish to enter teaching. This 
SLEAP activity does not require that the student be enrolled in a four-
year institution or program for the State to determine that the student 
wishes to enter teaching. This is also true for all other allowable 
postsecondary authorized SLEAP activities.
    Changes: None.
    Comments: The same commenter also had a problem with the 
requirement in Sec. 692.53(c)(3)(i) that States comply with the 
requirement in Sec. 692.21(g). Section 692.21(g) provides that ``if a 
State awards grants to independent students * * *, a reasonable portion 
of the State's allocation must be awarded to those [independent] 
students.'' The commenter believed that it is impractical for a State 
to ensure that a reasonable portion of the State's SLEAP allocation is 
awarded to independent students as required by Sec. 692.21(g), because 
of the unique and specific authorized SLEAP activities and the limited 
funds available for those activities. The commenter suggested that a 
State only should ensure that independent students were not 
systematically excluded or that the students were included in the pool 
of students considered for SLEAP funding.
    Discussion: We disagree. We do not believe that either the type of 
authorized activities under the SLEAP Program or the amount of funds 
appropriated for that program preclude the implementation of this 
provision. Moreover, the requirement of Sec. 692.21(g) flows from the 
statutory requirement in section 415C(b)(7) of the HEA.
    Changes: None.

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

    Comments: On commenter believed that the eligibility requirements 
for non-postsecondary students in Sec. 692.54(b) of the proposed SLEAP 
regulations exceeds the Secretary's regulatory authority. The commenter 
stated that a student receiving early intervention, mentoring, career 
education, or transition program services should not have to meet the 
applicable citizenship and residency requirements set forth in 
Sec. 668.33 of the Student Assistance General Provisions regulations. 
The commenter believed that this eligibility requirement is not 
required or written in the statute. The commenter noted that States 
typically do not collect this information and this provision could 
serve as a disincentive for States to use the SLEAP funds for early 
intervention activities. The commenter recommended that the Department 
not regulate in this area and allow the States to define student 
eligibility for the non-postsecondary activities.
    Discussion: We disagree. The SLEAP Program is authorized under 
Title IV, Part A, Subpart 4 of the HEA. Under section 415E(c)(1) 
through (c)(8) of the HEA, only ``eligible students'' may benefit from 
the activities authorized under the SLEAP Program, regardless of 
whether those activities are scholarships, grants, work assistance, or 
services, and regardless of whether the students are postsecondary or 
non-postsecondary students. Section 484 of the HEA sets forth the 
student eligibility requirements for the financial assistance provided 
under programs authorized under Title IV of the HEA, including LEAP and 
SLEAP. Accordingly, there can be no doubt that ``eligible students'' 
receiving scholarships, grants, or work assistance under the SLEAP 
Program must satisfy the applicable provisions of section 484 of the 
HEA. We see no logical basis for defining an ``eligible student'' 
differently for recipients of non-aid SLEAP activities. Thus, such a 
student must also satisfy the applicable provisions of section 484 of 
the HEA, and the citizenship and eligible non-citizenship requirement 
in section 484 is the one requirement in that section that is 
applicable to all recipients of SLEAP activities.
    This position mirrors the one we adopted for the former National 
Early Intervention Scholarship and Partnership (NEISP) Program. The 
NEISP statute also referred to eligible students for purposes of being 
a participant in the early intervention component. The NEISP 
regulations required that the States select only students for the early 
intervention component who were citizens or eligible noncitizens. 
Moreover, this position is consistent with the student eligibility 
requirements for the Talent Search and Upward Bound Programs, each of 
which serve students before they enroll in postsecondary institutions.
    Changes: None.

Executive Order 12866

    We have reviewed these final regulations in accordance with 
Executive Order 12866. Under the terms of the order, we have assessed 
the potential costs and benefits of this regulatory action.
    The potential costs associated with the final regulations are those 
resulting from statutory requirements and those we have determined are 
necessary for administering this program effectively and efficiently.
    In assessing the potential costs and benefits, both quantitative 
and qualitative, of these final regulations, we have determined that 
the benefits of the regulations justify the costs.
    We have also determined that this regulatory action does not unduly 
interfere with State, local, and tribal governments in the exercise of 
their governmental functions.
    We discussed the potential costs and benefits of these final 
regulations in the preamble to the NPRM on page 46327.

Paperwork Reduction Act of 1995

    The Paperwork Reduction Act of 1995 does not require you to respond 
to a collection of information unless it displays a valid Office of 
Management and Budget (OMB) control number. There are no collections of 
information in these final regulations that require the display of an 
OMB control number.

Intergovernmental Review

    The SLEAP Program is subject to the requirements of Executive Order 
12372 and the regulations in 34 CFR part 79. The objective of the 
Executive order is to foster an intergovernmental partnership and a 
strengthened federalism by relying on processes developed by State and 
local governments for coordination and review of proposed Federal 
financial assistance.
    In accordance with the order, we intend this document to provide 
early notification of the Department's specific plans and actions for 
this program.

Assessment of Educational Impact

    In the NPRM we requested comments on whether the proposed 
regulations would require transmission of information that any other 
agency or authority of the United States gathers or makes available.
    Based on the response to the NPRM and on our review, we have 
determined that these final regulations do not require transmission of 
information that any other agency or authority of the United States 
gathers or makes available.

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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, 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, D.C. 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: October 24, 2000.
Richard W. Riley,
Secretary of Education.

    For the reasons stated in the preamble, the Secretary amends 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 
AssistancePartnership 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
    (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)

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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. 00-27740 Filed 10-31-00; 8:45 am]
BILLING CODE 4000-01-U