[Federal Register Volume 68, Number 50 (Friday, March 14, 2003)]
[Notices]
[Pages 12536-12540]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 03-6160]



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Part IV





Department of Education





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Office of Innovation and Improvement--Public Charter Schools Program 
(PCSP); Notice Inviting Applications for New Awards for Fiscal Year 
(FY) 2003; Notice

  Federal Register / Vol. 68, No. 50 / Friday, March 14, 2003 / 
Notices  

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DEPARTMENT OF EDUCATION

[CFDA Nos.: 84.282A, 84.282B, and 84.282C]


Office of Innovation and Improvement--Public Charter Schools 
Program (PCSP); Notice Inviting Applications for New Awards for Fiscal 
Year (FY) 2003

    Purpose of Program: The purpose of the PCSP is to increase national 
understanding of the charter school model and to expand the number of 
high-quality charter schools available to students across the Nation by 
providing financial assistance for the planning, program design, and 
initial implementation of charter schools and evaluating the effects of 
charter schools, including the effects on students, student academic 
achievement, staff, and parents.
    Eligible Applicants: (a) State educational agencies (SEAs) in 
States with a specific State statute authorizing the establishment of 
charter schools may apply for funding. The Secretary awards grants to 
SEAs to enable them to conduct charter school programs in their States. 
SEAs use their PCSP funds to award subgrants to ``eligible 
applicants,'' as defined in this notice, for planning, program design, 
and initial implementation of a charter school; and to support the 
dissemination of information about, including successful practices in, 
charter schools. A charter school may apply to an SEA for funds to 
carry out dissemination activities, whether or not the charter school 
has applied for or received funds under the PCSP for planning or 
implementation, if the charter school has been in operation for at 
least three consecutive years and has demonstrated overall success, 
including--
    (1) Substantial progress in improving student achievement;
    (2) High levels of parent satisfaction; and
    (3) The management and leadership necessary to overcome initial 
start-up problems and establish a thriving, financially viable charter 
school.
    (b) Non-SEA eligible applicants may apply for funding directly from 
the U.S. Department of Education (Department) if the SEA in the State 
elects not to participate in the PCSP or does not have an application 
approved under the program. An ``eligible applicant'' is defined as a 
developer that has applied to an authorized public chartering authority 
to operate a charter school and has provided to that authority adequate 
and timely notice, and a copy, of its PCSP application, except that the 
Secretary or the SEA may waive these requirements in the case of a pre-
charter planning grant. If an SEA's application is approved in this 
competition, applications received from non-SEA eligible applicants in 
that State will be returned to the applicants. In such a case, the non-
SEA eligible applicant should contact the SEA for information related 
to the State's subgrant competition.

    Note: The following States currently have approved applications 
under this program: Arkansas, California, Colorado, Connecticut, 
Delaware, District of Columbia, Florida, Georgia, Hawaii, Idaho, 
Illinois, Indiana, Louisiana, Massachusetts, Michigan, Minnesota, 
Missouri, Nevada, New Jersey, New York, North Carolina, Ohio, 
Oklahoma, Oregon, Rhode Island, Tennessee, Texas, Utah and 
Wisconsin. In these States, only the SEA is eligible to receive an 
award under this competition. Eligible applicants in these States 
should contact their respective SEAs for information about 
participation in the State's charter school subgrant program. Non-
SEA eligible applicants in States that are not listed must apply 
directly to the Department on or before the deadline for transmittal 
of applications in order to be considered for funding in this 
competition.

    Applications Available: March 14, 2003.
    Deadline for Transmittal of Applications: April 28, 2003.
    Deadline for Intergovernmental Review: June 27, 2003.
    Estimated Available Funds: $24,750,000.
    Estimated Range of Awards: State educational agencies: $500,000-
$8,000,000 per year. Other eligible applicants: $10,000-$150,000 per 
year.
    Estimated Average Size of Awards: State educational agencies: 
$3,000,000 per year. Other eligible applicants: $150,000 per year.
    Estimated Number of Awards: State educational agencies: 4-6. Other 
eligible applicants: 50-75.

    Note: The Department is not bound by any estimates in this 
notice.

    Project Period: Up to 36 months.

    Note: Planning and implementation grants or subgrants awarded by 
the Secretary or an SEA directly to non-SEA eligible applicants will 
be awarded for a period of up to 36 months, no more than 18 months 
of which may be used for planning and program design; and no more 
than two years of which may be used for the initial implementation 
of a charter school. Dissemination grants are awarded for a period 
of up to two years.

    Applicable Regulations and Statute: (a) The Education Department 
General Administrative Regulations (EDGAR) in 34 CFR parts 75 (except 
Sec.  75.210), 76, 77, 79, 80, 81, 82, 85, 86, 97, and 99; and (b) 
Title V, Part B, Subpart 1 (formerly Title X, Part C) of the Elementary 
and Secondary Education Act of 1965 (ESEA), as amended by the No Child 
Left Behind Act of 2001 (NCLB), 20 U.S.C. 7221-7221j.

SUPPLEMENTARY INFORMATION: As part of wider education reform efforts to 
improve student achievement, the development of charter schools is an 
innovative approach to improving public education and expanding 
parental options in education. While charter school laws vary by State, 
public charter schools are granted greater flexibility in exchange for 
accountability for results. They are also public schools of choice in 
that all students, parents, and faculty associate with charter schools 
voluntarily. They are intended to stimulate the creativity and 
commitment of teachers, parents, students, and citizens to improve 
student academic achievement.
    Congress reauthorized the PCSP in January 2002, in amendments to 
the ESEA that were included in NCLB. Under the new legislation, a non-
SEA eligible applicant for PCSP funds must submit an application for a 
charter to an authorized public chartering authority and provide 
adequate and timely notice, and a copy, of its PCSP application to that 
agency. The SEA or the Secretary, as appropriate, may waive these 
requirements in cases where the eligible applicant is applying for a 
pre-charter planning grant or subgrant.
    The new legislation also added a specific provision prohibiting 
local educational agencies (LEAs) from deducting funds for 
administrative fees or expenses from a subgrant awarded to an eligible 
applicant, unless the eligible applicant voluntarily enters into a 
mutually agreed upon arrangement for administrative services with the 
LEA.
    When developing their proposals, applicants should be aware of 
Department regulations governing conflicts of interest. PCSP grantees 
must avoid apparent and actual conflicts of interest when administering 
grants and entering into contracts for equipment or services. Among 
other things, Federal grant recipients must develop written procurement 
procedures and conduct all procurement transactions in a manner that 
provides open and free competition. Department regulations also 
prohibit a person from participating in an administrative decision 
regarding a project if (a) the decision is likely to benefit that 
person or his or her immediate family member; and (b) the person has a 
family or business relationship with the grantee. The Department's 
conflict of interest regulations can be found generally at 34 CFR 
74.40-74.48 and 75.524-75.525. Additional information about the PCSP,

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including an application checklist, assurances, certifications, ED 
forms, waivers, and instructions for transmittal, is provided in the 
application package for this program.
    The Department will hold three (3) separate competitions under this 
program. All SEA applicants must apply for grant funds under CFDA No. 
84.282A. Non-SEA eligible applicants that propose to use grant funds 
for planning, program design, and implementation must apply under CFDA 
No. 84.282B; and Non-SEA eligible applicants that are requesting funds 
for dissemination activities must submit their applications under CFDA 
No. 84.282C.
    Application Requirements and Selection Criteria for the PCSP: All 
SEA and Non-SEA applicants applying for PCSP grant funds must address 
both the application requirements and selection criteria. All SEA and 
Non-SEA applicants applying for PCSP grant funds may choose to respond 
to the application requirements in the context of their response to the 
selection criteria.
    (1) SEAs (CFDA No. 84.282A).
    (A) Application Requirements (CFDA No. 84.282A). (1) Describe the 
objectives of the SEA's charter school grant program and describe how 
these objectives will be fulfilled, including steps taken by the SEA to 
inform teachers, parents, and communities of the SEA's charter school 
grant program;
    (2) Describe how the SEA will inform each charter school in the 
State about Federal funds that the charter school is eligible to 
receive and Federal programs in which the charter school may 
participate;
    (3) Describe how the SEA will ensure that each charter school in 
the State receives the school's commensurate share of Federal education 
funds that are allocated by formula each year, including during the 
first year of operation of the school;
    (4) Describe how the SEA will disseminate best or promising 
practices of charter schools to each local educational agency in the 
State;
    (5) If an SEA elects to reserve part of its grant funds (no more 
than 10 percent) for the establishment of a revolving loan fund, 
describe how the revolving loan fund would operate;
    (6) If an SEA desires the Secretary to consider waivers under the 
authority of the PCSP, include a request and justification for any 
waiver of statutory or regulatory provisions that the SEA believes is 
necessary for the successful operation of a charter school; and
    (7) Describe how charter schools that are considered to be LEAs 
under State law and LEAs in which a charter school is located will 
comply with sections 613(a)(5) and 613(e)(1)(B) of the Individuals with 
Disabilities Education Act.
    (B) Selection Criteria (CFDA No. 84.282A). SEAs that propose to use 
a portion of their grant funds for dissemination activities must 
address each selection criterion (1) through (8) individually and title 
each accordingly. SEAs that do not propose to use a portion of their 
grant funds for dissemination activities must address selection 
criteria (1) through (7) only, and need not address selection criterion 
(8).
    The maximum possible score is 130 points for SEAs that do not 
propose to use grant funds to support dissemination activities, and 150 
points for SEAs that propose to use grant funds to support 
dissemination activities.
    The maximum possible score for each criterion is indicated in 
parentheses following the criterion.
    To ensure fairness, if an SEA is not proposing to use grant funds 
to support dissemination activities, the Secretary will not consider 
points awarded under criterion (8) in determining whether to approve an 
application for funding.
    In evaluating an application from an SEA, the Secretary considers 
the following criteria:
    (1) The contribution the charter school grant program will make in 
assisting educationally disadvantaged and other students to achieve 
State academic content standards and State student academic achievement 
standards (25 points).
    (2) The degree of flexibility afforded by the SEA to charter 
schools under the State's charter school law (20 points).
    (3) The ambitiousness of the objectives for the State charter 
school grant program (15 points).
    (4) The quality of the SEA's strategy for assessing achievement of 
those objectives (15 points).
    (5) The likelihood that the charter school grant program will meet 
those objectives and improve educational results for students (15 
points).
    (6) The number of high-quality charter schools to be created in the 
State (20 points).
    (7) The adequacy of the management plan to achieve the objectives 
of the proposed project on time and within budget, including clearly 
defined responsibilities, timelines, and milestones for accomplishing 
project tasks (20 points).
    (8) In the case of SEAs that propose to use grant funds to support 
dissemination activities under section 5204(f)(6) of the ESEA, the 
quality of the dissemination activities and the likelihood that those 
activities will improve student achievement (20 points).
    (2) Non-SEA Applicants (CFDA No. 84.282B and 84.282C). The 
application requirements for all non-SEA applicants are listed in 
paragraph A in this section.
    The selection criteria for non-SEA applicants for Planning, Program 
Design, and Implementation Grants (CFDA No. 82.282B) are listed in 
paragraph B in this section.
    The selection criteria for non-SEA applicants for Dissemination 
Grants (CFDA No. 84.282C) are listed in paragraph C in this section.
    (A) Application Requirements (CFDA Nos. 84.282B and 84.282C). (1) 
Describe the educational program to be implemented by the proposed 
charter school, including how the program will enable all students to 
meet challenging State student performance standards, the grade levels 
or ages of students to be served, and the curriculum and instructional 
practices to be used;
    (2) Describe how the charter school will be managed;
    (3) Describe the objectives of the charter school and the methods 
by which the charter school will determine its progress toward 
achieving those objectives;
    (4) Describe the administrative relationship between the charter 
school and the authorized public chartering agency;
    (5) Describe how parents and other members of the community will be 
involved in the planning, program design and implementation of the 
charter school;
    (6) Describe how the authorized public chartering agency will 
provide for continued operation of the charter school once the Federal 
grant has expired, if that agency determines that the charter school 
has met its objectives;
    (7) If the charter school desires the Secretary to consider waivers 
under the authority of the PCSP, include a request and justification 
for waivers of any Federal statutory or regulatory provisions that the 
applicant believes are necessary for the successful operation of the 
charter school, and a description of any State or local rules, 
generally applicable to public schools, that will be waived for, or 
otherwise not apply to, the school;
    (8) Describe how the grant funds will be used, including how these 
funds will be used in conjunction with other Federal programs 
administered by the Secretary;
    (9) Describe how students in the community will be informed about 
the charter school and be given an equal

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opportunity to attend the charter school; and
    (10) Describe the extent of community support for the application.
    (B) Selection Criteria (CFDA No. 84.282B). Non-SEA Planning, 
Program Design, and Initial Implementation Grant applicants must 
address each selection criterion (1) through (9) individually and title 
each accordingly.
    The maximum possible score for all of the criteria in this section 
is 145 points.
    The maximum possible score for each criterion is indicated in 
parentheses following the criterion.
    In evaluating an application from a non-SEA eligible applicant for 
Planning, Program Design, and Implementation, the Secretary considers 
the following criteria:
    (1) The quality of the proposed curriculum and instructional 
practices (25 points).
    (2) The degree of flexibility afforded by the SEA and, if 
applicable, the (LEA) to the charter school (10 points).
    (3) The extent of community support for the application (10 
points).
    (4) The ambitiousness of the objectives for the charter school (15 
points).
    (5) The quality of the strategy for assessing achievement of those 
objectives (20 points).
    (6) The likelihood that the charter school will meet those 
objectives and improve educational results for students during and 
after the period of Federal financial assistance (20 points).
    (7) The extent to which the proposed project encourages parental 
involvement (10 points).
    (8) The qualifications, including relevant training and experience, 
of the project director; and the extent to which the applicant 
encourages applications for employment from persons who are members of 
groups that have traditionally been underrepresented based on race, 
color, national origin, gender, age, or disability (10 points).
    (9) The contribution the charter school will make in assisting 
educationally disadvantaged and other students to achieve to State 
academic content standards and State student academic achievement 
standards (25 points).
    (C) Selection Criteria (CFDA No. 84.282C). Non-SEA applicants for 
Dissemination Grants must address each selection criterion (1) through 
(5) individually and title each accordingly.
    The maximum possible score for all of the criteria in this section 
is 125 points.
    The maximum possible score for each criterion is indicated in 
parentheses following the criterion.
    In evaluating an application from a non-SEA eligible applicant for 
a dissemination grant, the Secretary considers the following criteria:
    (1) The quality of the proposed dissemination activities and the 
likelihood that those activities will improve student achievement (30 
points).
    (2) The extent to which the school has demonstrated overall 
success, including--
    (a) Substantial progress in improving student achievement (25 
points);
    (b) High levels of parent satisfaction (10 points); and
    (c) The management and leadership necessary to overcome initial 
start-up problems and establish a thriving, financially viable charter 
school (10 points).
    (3) The extent to which the results of the proposed project will be 
disseminated in a manner that will enable others to use the information 
or strategies (20 points).
    (4) The qualifications, including relevant training and experience, 
of the project director; and the extent to which the applicant 
encourages applications for employment from persons who are members of 
groups that have traditionally been underrepresented based on race, 
color, national origin, gender, age, or disability (10 points).
    (5) The adequacy of the management plan to achieve the objectives 
of the proposed project on time and within budget, including clearly 
defined responsibilities, timelines, and milestones for accomplishing 
project tasks (20 points).

Priorities

    Invitational Priority. The Secretary invites applications that 
propose to increase the capacity of charter schools to offer public 
school choice in those communities with the greatest need for public 
school choice by addressing the following factors:
    (a) The extent to which the applicant would plan, design, and 
implement one or more high-quality charter schools in geographic areas, 
including urban and rural areas, in which a large proportion or number 
of public schools have been identified for improvement, corrective 
action, or restructuring under Title I, Part A of the ESEA; and
    (b) The extent to which the applicant will plan, design, and 
implement one or more high-quality charter schools in geographic areas 
in which a large proportion of students have difficulty meeting State 
academic content and student achievement standards.
    Under 34 CFR 75.105(c)(1), the Department does not give an 
application that meets this invitational priority a competitive or 
absolute preference over other applications.
    Competitive Preference. In accordance with 34 CFR 75.105(c)(2)(i) 
and section 5202(e) of the ESEA, in awarding grants to SEAs under this 
competition, the Secretary gives priority to States to the extent that 
the State meets the statutory criterion described in paragraph (a) of 
this section, and one or more of the statutory criteria described in 
paragraphs (b) through (d) of this section.
    An SEA that meets priority (a) but does not meet one or more of the 
other priorities will not receive any priority points.
    An SEA that does not meet priority (a) but meets one or more of the 
other priorities will not receive any priority points.
    In order to receive preference, an applicant must identify the 
priorities that it meets and provide documentation supporting its 
claims.
    The maximum number of priority points for all of the priorities in 
this section is 40 points.
    (a) Periodic Review and Evaluation. The State provides for periodic 
review and evaluation by the authorized public chartering agency of 
each charter school at least once every 5 years to determine whether 
the charter school is meeting the terms of the school's charter, and is 
meeting or exceeding the academic performance requirements and goals 
for charter schools as provided under State law or the school's charter 
(10 points).
    (b) Number of High-Quality Charter Schools. The State has 
demonstrated progress in increasing the number of high-quality charter 
schools that are held accountable in the terms of the school's charters 
for meeting clear and measurable objectives for the educational 
progress of the students attending the schools, in the period prior to 
the period for which an SEA or eligible applicant applies for a grant 
under this competition (10 points).
    (c) One Authorized Public Chartering Agency Other than an LEA, or 
an Appeals Process. The State--
    (1) Provides for one authorized public chartering agency that is 
not an LEA, such as a State chartering board, for each individual or 
entity seeking to operate a charter school pursuant to State law; or
    (2) In the case of a State in which LEAs are the only authorized 
public chartering agencies, allows for an appeals process for the 
denial of an application for a charter school (10 points).
    (d) High Degree of Autonomy. The State ensures that each charter 
school has a high degree of autonomy over the

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charter school's budgets and expenditures (10 points).
    Other Statutory Provisions: The following definitions, amount 
criteria, allowable activities, and authorized uses of funds for 
dissemination activities are taken from the PCSP authorizing statute, 
in Title V, Part B, Subpart 1 of the ESEA. They are repeated in this 
application notice for the convenience of the applicant. Other 
statutory requirements also apply to this program.
    Definitions. The following definitions apply to this program:
    (a) Charter school means a public school that--
    (1) In accordance with a specific State statute authorizing the 
granting of charters to schools, is exempted from significant State or 
local rules that inhibit the flexible operation and management of 
public schools, but not from any rules relating to the other 
requirements of this definition;
    (2) Is created by a developer as a public school, or is adapted by 
a developer from an existing public school, and is operated under 
public supervision and direction;
    (3) Operates in pursuit of a specific set of educational objectives 
determined by the school's developer and agreed to by the authorized 
public chartering agency;
    (4) Provides a program of elementary or secondary education, or 
both;
    (5) Is nonsectarian in its programs, admissions policies, 
employment practices, and all other operations, and is not affiliated 
with a sectarian school or religious institution;
    (6) Does not charge tuition;
    (7) Complies with the Age Discrimination Act of 1975, title VI of 
the Civil Rights Act of 1964, title IX of the Education Amendments of 
1972, section 504 of the Rehabilitation Act of 1973, as amended, and 
part B of the Individuals With Disabilities Education Act;
    (8) Is a school to which parents choose to send their children, and 
that admits students on the basis of a lottery, if more students apply 
for admission than can be accommodated;
    (9) Agrees to comply with the same Federal and State audit 
requirements as do other elementary and secondary schools in the State, 
unless the requirements are specifically waived for the purposes of 
this program;
    (10) Meets all applicable Federal, State, and local health and 
safety requirements;
    (11) Operates in accordance with State law; and
    (12) Has a written performance contract with the authorized public 
chartering agency in the State that includes a description of how 
student performance will be measured in charter schools pursuant to 
State assessments that are required of other schools and pursuant to 
any other assessments mutually agreeable to the authorized public 
chartering agency and the charter school.
    (b) Developer means an individual or group of individuals 
(including a public or private nonprofit organization), which may 
include teachers, administrators and other school staff, parents, or 
other members of the local community in which a charter school project 
will be carried out.
    (c) Eligible applicant means a developer that has--
    (1) applied to an authorized public chartering authority to operate 
a charter school; and
    (2) provided adequate and timely notice to that authority under 
section 5203(d)(3) of the ESEA.

    Note: Section 5203(d)(3) requires the eligible Non-SEA applicant 
to provide the authority with timely notice, and a copy, of its 
application for PCSP funds. The Secretary or SEA may waive these 
requirements in the case of an application for a precharter planning 
grant or subgrant.

    (d) Authorized public chartering agency means an SEA, LEA, or other 
public entity that has the authority under State law and is approved by 
the Secretary to authorize or approve a charter school.
    Amount Criteria. In determining the amount of a grant to be awarded 
under this competition to an SEA, the Secretary shall take into 
consideration the number of charter schools that are operating or 
approved to open in the State.
    Allowable Activities. An eligible applicant receiving a grant or 
subgrant under this program may use the grant or subgrant funds only 
for--
    (a) Post-award planning and design of the educational program, 
which may include--
    (1) Refinement of the desired educational results and of the 
methods for measuring progress toward achieving those results; and
    (2) Professional development of teachers and other staff who will 
work in the charter school; and
    (b) Initial implementation of the charter school, which may 
include--
    (1) Informing the community about the school;
    (2) Acquiring necessary equipment and educational materials and 
supplies;
    (3) Acquiring or developing curriculum materials; and
    (4) Other initial operating costs that cannot be met from State or 
local sources.
    Use of Funds for Dissemination Activities. An SEA may reserve not 
more than 10 percent of the grant funds to support dissemination 
activities. A charter school may use those funds to assist other 
schools in adapting the charter school's program (or certain aspects of 
the charter school's program), or to disseminate information about the 
charter school through activities such as--
    (a) Assisting other individuals with the planning and start-up of 
one or more new public schools, including charter schools, that are 
independent of the assisting charter school and the assisting charter 
school's developers, and that agree to be held to at least as high a 
level of accountability as the assisting charter school;
    (b) Developing partnerships with other public schools, including 
charter schools, designed to improve student performance in each of the 
schools participating in the partnership;
    (c) Developing curriculum materials, assessments, and other 
materials that promote increased student achievement and are based on 
successful practices within the assisting charter school; and
    (d) Conducting evaluations and developing materials that document 
the successful practices of the assisting charter school and that are 
designed to improve student achievement.
    For Applications and Further Information Contact: Dean Kern, U.S. 
Department of Education, 400 Maryland Avenue, SW., room 3E116, 
Washington, DC 20202-6140. Telephone (202) 260-1882 or via Internet: 
[email protected].
    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 program contact person listed under For 
Applications and Further Information Contact.
    Individuals with disabilities may obtain a copy of the application 
package in an alternative format by contacting that person. However, 
the Department is not able to reproduce in an alternative format the 
standard forms included in the application package.

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.

[[Page 12540]]

    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. 
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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. 7221-7221j.

    Dated: March 10, 2003.
Nina S. Rees,
Deputy Under Secretary for Innovation and Improvement.
[FR Doc. 03-6160 Filed 3-13-03; 8:45 am]
BILLING CODE 4000-01-P