[Federal Register Volume 68, Number 82 (Tuesday, April 29, 2003)]
[Proposed Rules]
[Pages 23014-23016]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 03-10527]



[[Page 23013]]

-----------------------------------------------------------------------

Part V





Department of Agriculture





-----------------------------------------------------------------------



Cooperative State Research, Education, and Extension Service



-----------------------------------------------------------------------



7 CFR Part 3419



Matching Funds Requirement for Formula Funds for Agricultural Research 
and Extension Activities at 1890 Land-Grant Institutions, Including 
Tuskegee University and West Virginia State College; Proposed Rule

  Federal Register / Vol. 68, No. 82 / Tuesday, April 29, 2003 / 
Proposed Rules  

[[Page 23014]]


-----------------------------------------------------------------------

DEPARTMENT OF AGRICULTURE

Cooperative State Research, Education, and Extension Service

7 CFR Part 3419

RIN 0524-AA25


Matching Funds Requirement for Formula Funds for Agricultural 
Research and Extension Activities at 1890 Land-Grant Institutions, 
Including Tuskegee University and West Virginia State College

AGENCY: Cooperative State Research, Education, and Extension Service, 
USDA.

ACTION: Proposed rule.

-----------------------------------------------------------------------

SUMMARY: The Cooperative State Research, Education, and Extension 
Service (CSREES) proposes to revise part 3419 to title 7, subtitle B, 
chapter XXXIV of the Code of Federal Regulations, for the purpose of 
implementing the statutory amendments applicable to the matching 
requirements for Federal agricultural research and extension formula 
funds for 1890 land-grant institutions, including Tuskegee University 
and West Virginia State College. These matching requirements were 
amended by section 7212 of the Farm Security and Rural Investment Act 
of 2002 (FSRIA).

DATES: Submit comments on or before June 30, 2003.

ADDRESSES: Address all comments to CSREES-USDA; Office of Extramural 
Programs; Policy and Program Liaison Staff; Mail Stop 2299; 1400 
Independence Avenue, SW.; Washington, DC 20250-2299. Comments may be 
hand-delivered to CSREES-USDA; Office of Extramural Programs; Policy 
and Program Liaison Staff; Waterfront Centre, Rm. 2242; 800 9th Street, 
SW.; Washington, DC 20024. Comments may be mailed or sent 
electronically to [email protected].

FOR FURTHER INFORMATION CONTACT: George Cooper, Deputy Administrator, 
Science and Education Resources Development; CSREES/USDA; Mail Stop 
2250; 1400 Independence Avenue, SW.; Washington, DC 20250-2250; at 
(202) 401-2655, (202) 720-3945 (fax) or via electronic mail at 
[email protected].

SUPPLEMENTARY INFORMATION:

Background and Purpose

    The Cooperative State Research, Education, and Extension Service 
(CSREES) is revising part 3419 of title 7, subtitle B, chapter XXXIV of 
the Code of Federal Regulations which implements the matching 
requirements provided under section 1449 of the National Agricultural 
Research, Extension, and Teaching Policy Act of 1977 (NARETPA) for 
agricultural research and extension formula funds authorized for the 
1890 land-grant institutions including Tuskegee University and West 
Virginia State College. This revision is required due to the statutory 
amendments of sections 7212 and 7213 of the Farm Security and Rural 
Investment Act of 2002 (FSRIA), Public Law 107-171. Section 7212 of 
FSRIA revised the matching requirements in section 1449 from 50 percent 
of the formula funds distributed to each eligible institution in fiscal 
year (FY) 2002 to 60 percent of the formula funds distributed in FY 
2003; 70 percent in FY 2004; 80 percent in FY 2005; 90 percent in FY 
2006; and 100 percent in FY 2007 and thereafter. In addition, this 
section provided the Secretary of Agriculture with a new waiver 
authority for the matching funds requirement above the 50 percent level 
for any fiscal year for an eligible institution of a State if the 
Secretary determines that the State will be unlikely to satisfy the 
matching requirement. The Secretary's prior waiver authority extended 
only to FY 2000 formula funds. The proposed rule also implements 
section 753 of the Agriculture, Rural Development, Food and Drug 
Administration, and Related Agencies Appropriations Act, 2002, Pub. L. 
107-76, to extend this regulation to West Virginia State College.
    Prior to FSRIA, section 3(d) of the Hatch Act (7 U.S.C. 361c(d)) 
and section 3(e) of the Smith-Lever Act (7 U.S.C. 343(e)) subjected the 
1862 land-grant institutions in American Samoa, the Commonwealth of 
Puerto Rico, Guam, the Commonwealth of Northern Marianas Islands, the 
Virgin Islands of the United States, and the College of Micronesia to 
the same matching requirements as those applicable to an eligible 
institution under section 1449 of NARETPA. In implementing these Hatch 
Act and Smith-Lever Act requirements, CSREES promulgated the existing 
rule also to address the matching requirements for the insular area 
land-grant institutions. Section 7213 of FSRIA amended the Hatch Act 
and Smith-Lever Act to no longer subject the insular area land-grant 
institutions to the NARETPA section 1449 matching requirements. 
Instead, section 3(d) of the Hatch Act and section 3(e) of the Smith-
Lever Act provide for the insular areas a 50 percent matching 
requirement of the Federal formula funds beginning in fiscal year 2003. 
Both Acts empower the Secretary of Agriculture to waive these matching 
requirements for any fiscal year if the Secretary determines that the 
government of the insular area is unlikely to meet the requirement for 
that fiscal year. Promulgation of the insular area land-grant 
institution matching requirements for Federal formula funds will be 
done at a later date and through a separate rulemaking. The proposed 
revised part 3419 will address only the matching requirements for the 
1890 land-grant institutions.
    CSREES also proposes to clarify the definition of ``Qualifying 
Educational Activities'' by proposing that the ``Qualifying Educational 
Activities'' meet the definition of ``Food and Agricultural Sciences'' 
under Sec.  1404(8) of NARETPA (7 U.S.C. 3103(8)) and the definition of 
``Teaching and Education'' under section 1404(15) of NARETPA (7 U.S.C. 
3103(15)). In addition, CSREES is proposing that the word ``approved'' 
be deleted in Sec.  3419.6 ``Use of matching funds'' as the use of this 
word has been misleading. CSREES does not consider and approve the 
types of ``Qualifying Educational Activities'' used to meet the 
matching requirements. It is the responsibility of the eligible 
institution to ensure that the ``Qualifying Education Activities'' meet 
the definition of ``Food and Agricultural Sciences'' and ``Teaching and 
Education.'' The proposed rule also will remove the outdated 
requirement in the current Sec.  3419.3 for eligible institutions to 
submit a 1999 report. The proposed rule will revise Sec.  3419.3 to 
address the Secretary's new waiver authority discussed above.

Classification

    This proposed rule was reviewed under Executive Order 12866 and was 
determined to be nonsignificant. It will not create a serious 
inconsistency or otherwise interfere with an action planned by another 
agency. It will not materially alter the budgetary impact of 
entitlement, grants, user fees, or loan programs, or the rights and 
obligations of the recipients thereof. It will not raise novel legal or 
policy issues arising out of legal mandates, the President's 
priorities, or principles set forth in Executive Order 12866. This 
proposed rule will not have an annual effect on the economy of $100 
million or more or adversely affect in a material way the economy, a 
sector of the economy, productivity, competition, jobs, the 
environment, public health or safety, or State, local, or tribal 
governments or communities.

[[Page 23015]]

Regulatory Flexibility Act

    The Department certifies that this proposed rule will not have a 
significant impact on a substantial number of small entities as defined 
in the Regulatory Flexibility Act, Public Law No. 96-354 (5 U.S.C. 601 
et seq.). Accordingly, a regulatory flexibility analysis is not 
required for this proposed rule.

Catalog of Federal Domestic Assistance

    The programs affected by this proposed rule are listed in the 
Catalog of Federal Domestic Assistance under 10.205, Payments to the 
1890 Land-Grant Institutions and Tuskegee University and West Virginia 
State College, and No. 10.500, Cooperative Extension Service.

Paperwork Reduction Act

    In accordance with the Office of Management and Budget (OMB) 
regulations (5 CFR part 1320) which implement the Paperwork Reduction 
Act of 1995 (44 U.S.C. chapter 35), the information collection and 
recordkeeping requirements that will be imposed in the implementation 
of this proposed rule will be submitted to OMB for approval. These 
requirements would not become effective prior to OMB approval.
    Title: Section 1449 Matching Funds Requirements for Research and 
Extension Activities at Eligible Institutions.
    Summary: The purpose of this information collection is to implement 
the requirements of section 1449 of the National Agricultural Research, 
Extension, and Teaching Policy Act of 1977 (NARETPA). This provision 
establishes the matching requirements for the 1890 land-grant 
institutions,'' including Tuskegee University and West Virginia State 
College. This information collection had previously been approved by 
OMB as No. 0524-0038 and expires on 04/30/2003. Section 7212 of the 
Farm Security and Rural Investment Act of 2002 (FSRIA) amended section 
1449 of NARETPA. The existing information collection needs revision to 
reflect the amended requirements. In order to be in compliance with the 
Government Paperwork Elimination Act (44 U.S.C. 3504 note), CSREES will 
develop and implement an electronic option for submitting this 
information as soon as a robust eAuthentication solution is available. 
CSREES is expectant that this could occur by June 2004.
    Need for the Information: This information is needed by CSREES to 
determine if the matching requirements under section 1449 of NARETPA 
have been met by the 1890 land-grant institutions including Tuskegee 
University and West Virginia State College. CSREES intends to require 
the eligible institutions to complete Form CSREES-2103, ``Section 1449 
Matching Funds Requirement for Research and Extension Activities at 
Eligible Institutions,'' up to three times per year for research 
activities and three times per year for extension activities to provide 
information on the projected funds, the actual funds, and any revisions 
to the actual funds.
    Respondents: Respondents will be the eighteen 1890 land-grant 
institutions, including Tuskegee University and West Virginia State 
College, which will provide information to USDA on the amount and 
source of non-Federal funds made available by the States to the 
eligible institutions for agricultural research, extension, and 
qualifying educational activities to meet the matching requirements of 
section 1449 of NARETPA.
    Estimate of the Burden: The estimated burden on the respondents for 
Form CSREES-2103, ``Section 1449 Matching Funds Requirement for 
Research and Extension Activities at Eligible Institutions'' is 3.6 
hours per response. This burden estimate is based on a small survey of 
eligible institutions who have experience completing the current Form 
CSREES-2103, ``Section 1449 Matching Funds Requirement for Research and 
Extension Activities at Eligible Institutions.''
    Estimated Number of Respondents: 18.
    Estimated Annual Number of Responses: 108.
    Estimated Total Annual Burden on Respondents: 388.8 hours.
    Frequency of Responses: Three times a year.
    Copies of this information collection can be viewed at http://www.reeusda.gov/part/areera or can be obtained from Ellen Danus, Policy 
and Program Liaison Staff, Office of Extramural Programs, CSREES, USDA, 
(202) 401-4325, e-mail: [email protected].
    Comments: Comments are invited on: (a) Whether the proposed 
collection of information is necessary for the proper performance of 
the functions of the Agency, including whether the information will 
have practical utility; (b) the accuracy of the Agency's estimate of 
the burden of the proposed collection of information including the 
validity of the methodology and assumptions used; (c) ways to enhance 
the quality, utility, and clarity of the information to be collected; 
and (d) ways to minimize the burden of the collection of information on 
those who are to respond, including the use of appropriate automated, 
electronic, mechanical, or other technological collection techniques or 
other forms of information technology. Comments may be sent to: CSREES-
USDA; Office of Extramural Programs; Policy and Program Liaison Staff; 
Mail Stop 2299; 1400 Independence Avenue, SW.; Washington, DC 20250-
2299 by July 3, 2003, or to the Desk Officer for Agriculture, Office of 
Information and Regulatory Affairs, Office of Management and Budget, 
Washington, DC 20502. Reference should be made to the volume, page, and 
date of this Federal Register publication.

List of Subjects in 7 CFR Part 3419

    Agricultural extension, Agricultural research, Colleges and 
universities.

    For reasons set forth in the preamble, it is proposed to revise 
part 3419 of title 7, subtitle B, chapter XXXIV, of the Code of Federal 
Regulations to read as follows:

PART 3419--MATCHING FUNDS REQUIREMENT FOR AGRICULTURAL RESEARCH AND 
EXTENSION FORMULA FUNDS AT 1890 LAND-GRANT INSTITUTIONS, INCLUDING 
TUSKEGEE UNIVERSITY AND WEST VIRGINIA STATE COLLEGE

Sec.
3419.1 Definitions.
3419.2 Matching Funds.
3419.3 Limited waiver authority.
3419.4 Applications for waivers.
3419.5 Certification of matching funds.
3419.6 Use of matching funds.
3419.7 Redistribution of funds.

    Authority: 5 U.S.C. 301, 7 U.S.C. 3222d; sec. 753, Pub. L. 105-
277, 112 Stat. 2681-33.


Sec.  3419.1  Definitions.

    As used in this part:
    Eligible institution means a college or university eligible to 
receive funds under the Act of August 30, 1890 (7 U.S.C. 321 et seq.) 
(commonly known as the Second Morrill Act), including Tuskegee 
University and West Virginia State College. Formula funds means 
agricultural research funds provided to the eligible institutions under 
section 1445 of the National Agricultural Research, Extension, and 
Teaching Policy Act of 1977 (NARETPA), as amended, and agricultural 
extension funds provided to the eligible institutions under section 
1444 of NARETPA.
    Matching funds means cash contributions from non-Federal sources 
made available by the State to the eligible institutions:

[[Page 23016]]

    (a) For programs or activities that fall within the purposes of 
agricultural research and cooperative extension under sections 1444 and 
1445 of NARETPA; or
    (b) For qualifying educational activities. Non-Federal sources 
means funds made available by the State to the eligible institution 
either through direct appropriation or under any authority (other than 
authority to charge tuition and fees paid by students) provided by a 
State to an eligible institution to raise revenue, such as gift 
acceptance authority or user fees.
    Qualifying educational activities means programs that address food 
and agricultural sciences components of an eligible institution based 
on the definitions of ``Food and Agricultural Sciences'' and ``Teaching 
and Education'' in section 1404 of NARETPA.
    Secretary means the Secretary of Agriculture and any other officer 
or employee of the Department of Agriculture to whom the authority 
involved has been delegated.
    State means the government of any one of the fifty States.


Sec.  3419.2  Matching funds.

    The distribution of formula funds shall be subject to the following 
matching requirements:
    (a) For fiscal year 2003, matching funds shall equal not less than 
60 percent of the formula funds to be distributed to the eligible 
institution;
    (b) For fiscal year 2004, matching funds shall equal not less than 
70 percent of the formula funds to be distributed to the eligible 
institution;
    (c) For fiscal year 2005, matching funds shall equal not less than 
80 percent of the formula funds to be distributed to the eligible 
institution;
    (d) For fiscal year 2006, matching funds shall equal not less than 
90 percent of the formula funds to be distributed to the eligible 
institution; and
    (e) For fiscal year 2007 and each fiscal year thereafter, the 
matching funds shall equal not less than 100 percent of the formula 
funds to be distributed to the eligible institution.


Sec.  3419.3  Limited waiver authority.

    (a) The Secretary may waive the matching funds requirement in Sec.  
3419.2 above the 50 percent level for any fiscal year for an eligible 
institution of a State if the Secretary determines that the State will 
be unlikely to satisfy the matching requirement.
    (b) The criteria to waive the matching requirement above the 50 
percent level in fiscal year 2003 and thereafter may include:
    (1) Natural disaster, flood, fire, tornado, hurricane, or drought;
    (2) State and/or institution facing a financial crisis; or
    (3) Demonstration of a good faith effort to obtain funds.
    (c) Approval or disapproval of the request for a waiver will be 
based on the application submitted under Sec.  3419.4.


Sec.  3419.4  Applications for waivers.

    The president of the eligible institution must submit any request 
for a waiver for matching requirements. A waiver application shall 
include the name of the eligible institution, the type of Federal 
formula funds (i.e., research and/or extension), appropriate fiscal 
year, the basis for the request (e.g., one or more criteria identified 
in Sec.  3419.3), supporting justification, and the amount of the 
request. An application for a waiver shall be submitted by July 1 of 
the fiscal year for which the request is made. If an application for a 
waiver is being made for a prior fiscal year, the eligible institution 
also must provide an explanation and justification as to why this 
application was not made in the appropriate fiscal year. The Secretary 
shall approve or disapprove an application for a waiver within 60 days 
of receipt.


Sec.  3419.5  Certification of matching funds.

    Prior to the distribution of formula funds each fiscal year, each 
eligible institution must certify as to the availability of matching 
funds. Eligible institutions may revise their certifications of 
matching funds through July 1 of the fiscal year for which funds are 
appropriated.


Sec.  3419.6  Use of matching funds.

    The required matching funds for the formula programs shall be used 
by an eligible institution for agricultural research and extension 
activities that have been approved in the plan of work required under 
sections 1444(d) and 1445(c) of the National Agricultural Research, 
Extension, and Teaching Policy Act of 1977 or for qualifying 
educational activities.


Sec.  3419.7  Redistribution of funds.

    All formula funds not matched and reported under Sec.  3419.5 by 
July 1 of each fiscal year will be reapportioned to the other eligible 
institutions that have satisfied their current fiscal year requirements 
for matching funds for the formula funds. Unmatched research and 
extension funds will be reapportioned in accordance with the research 
and extension statutory distribution formulas applicable to the 1890 
land-grant institutions. Any redistribution of funds shall be subject 
to the same matching requirement under Sec.  3419.2.

    Done in Washington, DC, this 11th day of April, 2003.
Gary Cunningham,
Associate Administrator, Cooperative State, Research, Education, and 
Extension Service.
[FR Doc. 03-10527 Filed 4-28-03; 8:45 am]
BILLING CODE 3410-22-P