[Federal Register Volume 66, Number 123 (Tuesday, June 26, 2001)]
[Rules and Regulations]
[Pages 34038-34040]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 01-16006]



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Part V





Department of Education





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34 CFR Parts 675, 676, and 692



Federal Work-Study Programs, Federal Supplemental Educational 
Opportunity Grant Program, and Special Leveraging Educational 
Assistance Partnership Program; Final Rule

  Federal Register / Vol. 66, No. 123 / Tuesday, June 26, 2001 / Rules 
and Regulations  

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DEPARTMENT OF EDUCATION

34 CFR Parts 675, 676, and 692


Federal Work-Study Programs, Federal Supplemental Educational 
Opportunity Grant Program, and Special Leveraging Educational 
Assistance Partnership Program

AGENCY: Department of Education.

ACTION: Final regulations.

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SUMMARY: The Federal Work-Study (FWS), Federal Supplemental Educational 
Opportunity Grant (FSEOG), and Special Leveraging Educational 
Assistance Partnership (SLEAP) programs are authorized under the Higher 
Education Act of 1965 as amended (HEA). We amend the regulations for 
the FWS, FSEOG, and SLEAP programs to conform them to statutory changes 
made to the HEA.

DATES: These regulations are effective July 1, 2001.

FOR FURTHER INFORMATION CONTACT:
    1. For the FWS and FSEOG programs: Ms. Kathy Gause, U.S. Department 
of Education, 400 Maryland Avenue, SW., Regional Office Building 3, 
Room 3045, Washington, DC 20202-5447. Telephone: (202) 708-8242.
    2. For the SLEAP Program: Ms. Jackie Butler, U.S. Department of 
Education, 400 Maryland Avenue, SW., Regional Office Building 3, Room 
3045, 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 one of the contact persons listed under this 
heading.

SUPPLEMENTARY INFORMATION:

FWS and FSEOG Programs

    We amend the regulations for the FWS and FSEOG programs to conform 
them to statutory changes made to the HEA by the Higher Education 
Amendments of 1998, Public Law 105-244. Institutions participating in 
the FWS and FSEOG programs normally are required to pay an 
institutional share under each program. However, certain institutions 
are eligible for a waiver of those institutional share 
responsibilities. Prior to the Higher Education Amendments of 1998, the 
institutions that were eligible for a waiver were those that qualified 
as eligible institutions under the institutional development programs 
authorized under Title III of the HEA. The regulations for the FWS and 
FSEOG programs identified those Title III, HEA programs in 
Secs. 675.26(d)(2)(i)(A) and 676.21(b)(1), respectively.
    The Higher Education Amendments of 1998 moved one of the programs, 
the Developing Hispanic-Serving Institutions Program, from Title III to 
Title V of the HEA. It also added two new programs to Title III, the 
American Indian Tribally Controlled Colleges and Universities Program 
and the Alaska Native and Native Hawaiian-Serving Institutions Program. 
We have amended Secs. 675.26(d)(2)(i)(A) and 676.21(b)(1) to reflect 
those statutory changes.

SLEAP Program

    We amend the regulations for the SLEAP Program to conform them to 
statutory changes made to the HEA by section 316 of the ``Department of 
Education Appropriations Act, 2001,'' Title III of the Department of 
Labor, Health and Human Services, and Education, and Related Agencies 
Appropriations Act, 2001, as enacted by section 1(a)(1) of Pub. L. 106-
554, the ``Consolidated Appropriations Act 2001.''
    The SLEAP Program, a component of the Leveraging Educational 
Assistance Partnership (LEAP) Program, was added by the Higher 
Education Amendments of 1998. On November 1, 2000, we published final 
regulations for the SLEAP Program. However, on December 21, 2000, 
section 316 of the ``Department of Education Appropriations Act, 2001'' 
was enacted which:
     Eliminated the SLEAP authorized activities that provided 
services to preschool, elementary school, and secondary school 
students;
     Combined and clarified the existing SLEAP authorized 
activities for postsecondary students;
     Added a special rule to ensure that the SLEAP Program 
generates new need-based State funds in excess of the amount the State 
spent for need-based programs in the 1999-2000 award year (the year 
before the start of the SLEAP Program); and
     Prohibited the use of SLEAP Program funds to pay any 
administrative costs.
    We have amended Secs. 692.50, 692.52, 692.53, 692.54, 692.60 and 
692.71, and have added Sec. 692.72, to reflect these statutory changes.

Waiver of Proposed Rulemaking and Negotiated Rulemaking

    Under the Administrative Procedure Act (5 U.S.C. 553) the 
Department generally offers interested parties the opportunity to 
comment on proposed regulations. However, these regulations merely 
reflect statutory changes, correct cross-references, and remove 
obsolete regulatory provisions. The changes do not establish or affect 
substantive policy. Therefore, the Secretary has concluded that these 
regulations are technical in nature and do not necessitate public 
comment. Therefore, under 5 U.S.C. 553(b)(B), the Secretary has 
determined that proposed regulations are unnecessary and contrary to 
the public interest. The Secretary also waives the 30-day delayed 
effective date under 5 U.S.C. 553(d)(3).
    For the same reasons, the Secretary has determined, under section 
492(b)(2) of the HEA, that these regulations should not be subject to 
negotiated rulemaking.

Regulatory Flexibility Act Certification

    The Secretary certifies that these regulations would not have a 
significant economic impact on a substantial number of small entities. 
Small entities affected by these regulations are small institutions of 
higher education. Although States and State agencies are impacted by 
these regulations, they are not defined as ``small entities'' in the 
Regulatory Flexibility Act. These regulations contain technical 
amendments designed to clarify and correct current regulations. The 
changes will not have a significant economic impact on the 
institutions, State or State agencies affected.

Paperwork Reduction Act of 1995

    These regulations do not contain any information collection 
requirements.

Intergovernmental Review

    The FSEOG and SLEAP programs are 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 these programs.
    The FWS Program is not subject to the requirements of Executive 
Order 12372 and the regulations in 34 CFR part 79.

Assessment of Educational Impact

    Based on our own review, we have determined that these final 
regulations do not require transmission of information that any other 
agency or

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authority of the United States gathers or makes available.

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 the following site: 
http://www.ed.gov/legislation/FedRegister.
    To use PDF, you must have Adobe Acrobat Reader, which is available 
free at this site. 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.
    You may also view this document in text or PDF at the following 
site: http://www.ifap.ed.gov.


    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 Numbers: 84.007 Federal 
Supplemental Educational Opportunity Grant Program; 84.033 Federal 
Work-Study Program; 84.069 Leveraging Educational Assistance 
Partnership Program.)

List of Subjects

34 CFR Parts 675 and 676

    Colleges and universities, Employment, Grant programs-education, 
Reporting and recordkeeping requirements, Student aid.

34 CFR Part 692

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

    Dated: June 21, 2001.
Maureen A. McLaughlin,
Deputy Assistant Secretary for Policy, Planning and Innovation, Office 
of Postsecondary Education.
    For the reasons stated in the preamble, the Secretary amends title 
34 of the Code of Federal Regulations by amending parts 675, 676, and 
692 as follows:

PART 675--FEDERAL WORK-STUDY PROGRAMS

    1. The authority citation for part 675 continues to read as 
follows:

    Authority: 42 U.S.C. 2751-2756b, unless otherwise noted.


    2. Section 675.26 is amended by revising paragraph (d)(2)(i)(A) and 
the section authority to read as follows:


Sec. 675.26  FWS Federal share limitations.

* * * * *
    (d) * * *
    (2) * * *
    (i) * * *
    (A) Is designated as an eligible institution under--
    (1) The Developing Hispanic-Serving Institutions Program (34 CFR 
part 606);
    (2) The Strengthening Institutions Program, American Indian 
Tribally Controlled Colleges and Universities Program, or Alaska Native 
and Native Hawaiian-Serving Institutions Program (34 CFR part 607);
    (3) The Strengthening Historically Black Colleges and Universities 
Program (34 CFR part 608); or
    (4) The Strengthening Historically Black Graduate Institutions 
Program (34 CFR part 609); and
* * * * *
(Authority: 20 U.S.C. 1068d and 1103d; 42 U.S.C. 2753)

PART 676--FEDERAL SUPPLEMENTAL EDUCATIONAL OPPORTUNITY GRANT 
PROGRAM

    3. The authority citation for part 676 continues to read as 
follows:

    Authority:  20 U.S.C. 1070b-1070b-3, unless otherwise noted.


    4. Section 676.21 is amended by revising paragraph (b)(1) and the 
section authority to read as follows:


Sec. 676.21  FSEOG Federal share limitations.

* * * * *
    (b) * * *
    (1) Is designated as an eligible institution under--
    (i) The Developing Hispanic-Serving Institutions Program (34 CFR 
part 606);
    (ii) The Strengthening Institutions Program, American Indian 
Tribally Controlled Colleges and Universities Program, or Alaska Native 
and Native Hawaiian-Serving Institutions Program (34 CFR part 607); or
    (iii) The Strengthening Historically Black Colleges and 
Universities Program (34 CFR part 608); and
* * * * *
(Authority: 20 U.S.C. 1068d, 1103d, and 1070b-2)

PART 692--LEVERAGING EDUCATIONAL ASSISTANCE PARTNERSHIP PROGRAM

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

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


    6. Section 692.50 is revised to read as follows:


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

    The Special Leveraging Educational Assistance Partnership (SLEAP) 
Program assists States in providing grants, scholarships, and community 
service work-study assistance to eligible students who attend 
institutions of higher education and demonstrate financial need.

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

    7. Section 692.52 is revised to read as follows:


Sec. 692.52  What definitions apply to the SLEAP Program?

    The definitions listed in Sec. 692.4 apply to the SLEAP Program.

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


    8. Section 692.53 is amended by revising paragraph (c) to read as 
follows:


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

* * * * *
    (c) Have a program that satisfies the requirements in 
Sec. 692.21(a), (b), (d), (e), (f), (g), (j), and (k).

    9. Section 692.54 is revised to read as follows:


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

    To receive assistance under the SLEAP Program, a student must meet 
the eligibility requirements contained in Sec. 692.40.

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


    10. Section 692.60 is amended by revising paragraph (b); 
redesignating paragraphs (c) and (d) as paragraphs (d) and (e) 
respectively; and adding a new paragraph (c) to read as follows:


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

* * * * *
    (b) Identify the activities in Sec. 692.71 for which it plans to 
use the SLEAP Federal and non-Federal funds;
    (c) Ensure that the non-Federal funds used as matching funds 
represent dollars that are in excess of the total dollars that a State 
spent for need-based grants, scholarships, and work-study assistance 
for fiscal year 1999, including the State funds reported as part of its 
LEAP Program;
* * * * *

    11. Section 692.71 is revised to read as follows:

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

    A State may use the funds it receives under the SLEAP Program for 
one or more of the following activities:
    (a) Supplement LEAP grant awards to eligible students who 
demonstrate financial need by--
    (1) Increasing the LEAP grant award amounts for students; or
    (2) Increasing the number of students receiving LEAP grant awards.
    (b) Supplement LEAP community service work-study awards to eligible 
students who demonstrate financial need by--
    (1) Increasing the LEAP community service work-study award amounts 
for students; or
    (2) Increasing the number of students receiving LEAP community 
service work-study awards.
    (c) Award scholarships to eligible students who demonstrate 
financial need and who--
    (1) Demonstrate merit or academic achievement; or
    (2) Wish to enter a program of study leading to a career in--
    (i) Information technology;
    (ii) Mathematics, computer science, or engineering;
    (iii) Teaching; or
    (iv) Other fields determined by the State to be critical to the 
State's workforce needs.

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


    12. Section 692.72 is added to read as follows:


Sec. 692.72  May a State use the funds it receives under the SLEAP 
Program to pay administrative costs?

    A State may not use any of the funds it receives under the SLEAP 
Program to pay any administrative costs.

(Authority: 20 U.S.C. 1070c-3a)
[FR Doc. 01-16006 Filed 6-25-01; 8:45 am]
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