[Federal Register Volume 68, Number 125 (Monday, June 30, 2003)]
[Proposed Rules]
[Pages 38657-38660]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 03-16265]


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DEPARTMENT OF VETERANS AFFAIRS

38 CFR Part 21

RIN 2900-AL43


Administration of VA Educational Benefits--Centralized 
Certification

AGENCY: Department of Veterans Affairs.

ACTION: Proposed rule.

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SUMMARY: This document proposes to amend the Department of Veterans 
Affairs (VA) rules governing certification of enrollment in approved 
courses for the training of veterans and other eligible persons under 
education benefit programs VA administers. As part of the approval 
requirements, educational institutions designate an official of the 
institution (a VA certifying official) to certify the enrollment of 
veterans and other eligible persons to VA. As a general rule, VA rules 
currently require that each branch or extension of an educational 
institution must perform the certifications and maintain records for 
veterans and other eligible persons at the branch or extension. The 
proposed rule would expand current regulations to allow an educational 
institution to combine the certification functions at one or more of 
its locations, to include branches and extensions not located within 
the same State.

DATES: Comments must be received on or before August 29, 2003.

ADDRESSES: Mail or hand-deliver written comments to: Director, Office 
of Regulations Management (02D), Department of Veterans Affairs, 810 
Vermont Avenue, NW, Room 1154, Washington, DC 20420; or fax comments to 
(202) 273-9289; or e-mail comments to [email protected]. 
Comments should indicate that they are submitted in response to ``RIN 
2900-AL43''. All written comments received will be available for public 
inspection at the above address in the Office of Regulations 
Management, room 1158 between the hours of 8 a.m. to 4:30 p.m., Monday 
through Friday (except holidays).

FOR FURTHER INFORMATION CONTACT: Lynn M. Cossette, Education Advisor, 
Education Service (225C), Veterans Benefits Administration, Department 
of Veterans Affairs, 810 Vermont Avenue, NW., Washington, DC 20420, 
202-273-7294.

SUPPLEMENTARY INFORMATION: For purposes of background information, 
educational institutions are required under sections 3675 and 3676, 
title 38, United States Code (U.S.C.), to maintain certain records in 
order for their courses to be approved for VA training. Generally, 
these records contain information about students' grades and progress, 
prior training, charges for tuition and fees, and other administrative 
and policy records that show the institution satisfactorily meets all 
the approval criteria in sections 3675 and 3676. In addition, each 
institution must make its records and accounts pertaining to eligible 
veterans and eligible persons who receive educational assistance under 
chapters

[[Page 38658]]

30, 31, 32, 34, 35, and 36 of title 38, U.S.C. available for 
examination by authorized representatives of the Government. 
Furthermore, section 3684, title 38, U.S.C. requires that each 
educational institution offering a course, in which a veteran or 
eligible person is enrolled under chapter 30, 31, 32, 34, 35, or 36 of 
title 38, U.S.C., must report to VA the following information--
    [sbull] The enrollment of each such veteran or eligible person; and
    [sbull] The interruption or termination of the education of each 
such person.
    The school official that prepares the above-required certifications 
is known as the ``VA certifying official''.
    Under current rules, if an educational institution offers courses 
in residence at a branch or extension, VA generally requires that each 
branch or extension itself must maintain the records and perform the 
required certifications. We refer to the branch or extension's ability 
to maintain the records and prepare the certifications we require as 
having ``administrative capability''. In the proposed rule, we include 
the definition of ``administrative capability''.
    If an educational institution offers courses at a branch or 
extension within the same State, the current rule allows the 
educational institution to centralize administrative capabilities at 
its parent facility. It may do so only if it can identify the records 
of students at each branch, specify which branch the student attends 
when sending certifications to VA, and if it maintains a centralized 
record keeping system at the parent facility.
    Recognizing that several educational institutions now offer courses 
in many locations, and sometimes in many States, VA is proposing to 
amend its regulations to allow educational institutions more 
flexibility in centralizing administrative capability for its various 
locations. Under the proposed rule, the educational institution may be 
able to do so if it can meet the requirements in the proposed rule. To 
combine administrative capability of two locations not in the same 
State, VA proposes that the location with administrative capability 
must demonstrate the following--
    (i) The location with administrative capability maintains all 
records and accounts that 38 CFR 21.4209 requires for each student at 
the location (or locations) without administrative capability. These 
records may be originals, certified copies, or in an electronically 
formatted record keeping system.
    (ii) The educational institution has an employee (or employees) 
physically present at the location with administrative capability who 
is able to discuss with or explain to VA the relationship between the 
student's record and the enrollment information as certified to VA.
    (iii) The educational institution location with administrative 
capability can specify the location where the student is training when 
sending certifications concerning that student to VA.
    (iv) The educational institution location with administrative 
capability maintains a list of all programs approved for VA training 
for each location for which it has administrative capability.
    (v) The educational institution location with administrative 
capability either--
    (1) Has all required records for each location for which it has 
administrative capability available for review by State approving 
agency representatives and/or VA officials; or
    (2) If located in a different State than the State approving agency 
representative or the VA official, has the ability and agrees to send 
copies of any records requested to the State approving agency 
representative and/or VA official from that location.
    If an educational institution does centralize administrative 
capability for all its branches into one location under the proposed 
rule, it must have the VA certifying official (or officials) at the 
centralized location of the educational institution. Under the proposed 
rule, the location with administrative capability does not have to be a 
teaching location. Further, the proposed rule states that the 
educational institution may consolidate the administrative capability 
at its primary administrative offices when the primary administrative 
offices are not co-located at the main campus.
    In addition, we propose to define the terms ``main campus,'' 
``branch campus,'' and ``extension.'' We further propose that these 
definitions would apply only to the section of our regulations that the 
proposed rule amends. We are proposing these definitions because many 
educational institutions offer courses at various locations and we must 
clearly explain and distinguish how the rules regarding administrative 
capability apply to the different locations.
    Within the education community, a main teaching facility of an 
educational institution is currently referred to variously as the 
``main campus,'' ``primary location,'' ``home,'' ``parent facility,'' 
or ``original campus''. We propose to choose the term ``main campus'' 
to distinguish the primary teaching location from any additional 
locations the educational institution may have. If the educational 
institution has only one teaching location, it is the ``main campus'' 
for purposes of this proposed rule. If the educational institution does 
not designate any of its locations as the primary teaching location, we 
propose that the primary office of its Chief Executive Officer be the 
main campus, for purposes of this proposed rule.
    Some educational institutions refer to a subordinate location as 
``branch,'' ``extension,'' ``alternative teaching site,'' or 
``satellite,'' to name a few. Other educational institutions consider 
all locations equal to each other and refer to them as ``branches'' or 
``teaching centers.'' We propose to choose two terms, ``branch campus'' 
and ``extension'' to distinguish the different types of locations. We 
propose to define a ``branch campus'' similar to the Department of 
Education's definition of ``branch campus.'' For purposes of this 
proposed rule, ``branch campus'' means a location of an educational 
institution--
    (i) That is geographically apart and operationally independent of 
the main campus of the educational institution;
    (ii) That has its own faculty, administration and supervisory 
organization; and
    (iii) That offers courses in education programs leading to a 
degree, certificate, or other recognized education credential.
    For purposes of this proposed rule, the term ``extension'' means a 
location of an educational institution that is geographically apart 
from and is operationally dependent on the main campus or a branch 
campus of the educational institution. Examples of an extension are 
classrooms at a business, hospital, or hotel.

Unfunded Mandates

    The Unfunded Mandates Reform Act requires, at 2 U.S.C 1532, that 
agencies prepare an assessment of anticipated costs and benefits before 
developing any rule that may result in an expenditure by State, local, 
or tribal governments, in the aggregate, or by the private section, of 
$100 million or more in any given year. This proposed rule would have 
no consequential effect on State, local, or tribal governments.

Executive Order 12866

    This document has been reviewed by the Office of Management and 
Budget under Executive Order 12866.

[[Page 38659]]

Paperwork Reduction Act

    This document contains no provisions constituting a collection of 
information under the Paperwork Reduction Act (44 U.S.C. 3501-3521).

Regulatory Flexibility Act

    The Secretary of Veterans Affairs (VA) hereby certifies that this 
proposed rule will not have a significant economic impact on a 
substantial number of small entities as they are defined in the 
Regulatory Flexibility Act, 5 U.S.C. 601-612. This proposed rule 
affects educational institutions. Although some educational 
institutions may be small entities, the proposed rule will not have an 
adverse economic impact on them. This is because the proposed rule 
allows educational institutions that offer courses at more than one 
location more flexibility in centralizing administrative activities 
they perform in connection with VA approved training. Pursuant to 5 
U.S.C. 605(b), this proposed rule, therefore is exempt from the initial 
and final regulatory flexibility analysis requirements of sections 603 
and 604.

Catalog of Federal Domestic Assistance Program Numbers

    The Catalog of Federal Domestic Assistance numbers for the programs 
affected by this proposed rule are 64.117, 64.120, and 64.124. This 
proposed rule also affects the Montgomery GI Bill Selected Reserve 
program. There is no Catalog of Federal Domestic Assistance number for 
the Montgomery GI Bill Selected Reserve program.

List of Subjects in 38 CFR Part 21

    Administrative practice and procedure, Armed forces, Civil rights, 
Claims, Colleges and universities, Conflicts of interests, Defense 
Department, Education, Employment, Grant programs-education, Grant 
programs-veterans, Health care, Loan programs-education, Loan programs-
veterans, Manpower training programs, Reporting and recordkeeping 
requirements, Schools, Travel and transportation expenses, Veterans, 
Vocational education, Vocational rehabilitation.

    Approved: April 2, 2003.
Anthony J. Principi,
Secretary of Veterans Affairs.

    For the reasons set out above, 38 CFR part 21 (subpart D) is 
proposed to be amended as set forth below.

PART 21--VOCATIONAL REHABILITATION AND EDUCATION

Subpart D--Administration of Educational Assistance Programs

    1. The authority citation for part 21, subpart D, continues to read 
as follows:

    Authority: 10 U.S.C. 2141 note, ch. 1606; 38 U.S.C. 501(a), chs. 
30, 32, 34, 35, 36, unless otherwise noted.

    2. Section 21.4266 is revised to read as follows:


Sec.  21.4266  Approval of courses at a branch campus or extension.

    (a) Definitions. The following definitions apply to the terms used 
in this section.
    (1) Administrative capability. The term administrative capability 
means the ability to:
    (i) Maintain all records and accounts that Sec.  21.4209 requires;
    (ii) Designate and have a certifying official on-site; and
    (iii) Provide VA with the reports and certifications that 
Sec. Sec.  21.4203, 21.4204, 21.7152, and 21.7652 require based on 
source data on site, without referral to another location of an 
educational institution for documentation.

(Authority: 38 U.S.C. 3675, 3676, 3684)


    (2) Main campus. The term main campus means the location where the 
primary teaching facilities of an educational institution are located. 
If an educational institution has only one teaching location, that 
location is its main campus. If it is unclear which of the educational 
institution's teaching facilities is primary, the main campus is the 
location of the primary office of its Chief Executive Officer.
    (3) Branch campus. The term branch campus means a location of an 
educational institution that--
    (i) Is geographically apart from and operationally independent of 
the main campus of the educational institution;
    (ii) Has its own faculty, administration and supervisory 
organization; and
    (iii) Offers courses in education programs leading to a degree, 
certificate, or other recognized education credential.
    (4) Extension. The term extension means a location of an 
educational institution that is geographically apart from and is 
operationally dependent on the main campus or a branch campus of the 
educational institution.
    (b) State approving agency jurisdiction. (1) The State approving 
agency for the State where a residence course is being taught has 
jurisdiction over approval of that course for VA education benefit 
purposes.
    (2) The fact that the location where the educational institution is 
offering the course may be temporary will not serve to change 
jurisdictional authority.
    (3) The fact that the main campus of the educational institution 
offering the course may be located in another State will not serve to 
change jurisdictional authority.

(Authority: 38 U.S.C. 3672)

    (c) Approving a course offered by a branch campus or an extension 
of an educational institution. Before approving a course or a program 
of education offered in residence at a branch campus or an extension of 
an educational institution, the State approving agency must ensure 
that:
    (1) The course or program meets the requirements of Sec.  21.4253, 
or Sec.  21.4254, as the case may be;
    (2) Accredited courses meet the requirements of Sec.  21.4253(d)(7) 
and (8) and nonaccredited courses meet the requirements of Sec.  
21.4254(c)(2) and (3) concerning the adequacy of space, equipment, 
instructional material, and instructors at the location where the 
educational institution is offering the course; and
    (3) Except as provided in paragraph (d) of this section each 
location (other than an extension) where the course is offered must 
have administrative capability.

(Authority: 38 U.S.C. 3672)

    (d) Exceptions to the requirement that administrative capability 
exist at each location. An educational institution may ask for an 
exception to the requirement in paragraph (c) of this section that each 
location with an approved course or program of education have 
administrative capability.
    (1) If the educational institution wants to consolidate 
administrative capability at one or more locations in the same State, 
the State approving agency must allow it to do so when the location 
where administrative capability is maintained can demonstrate the 
following:
    (i) The location with administrative capability maintains all 
records and accounts that Sec.  21.4209 requires for each student 
attending the location (or locations) without administrative 
capability. These records may be originals, certified copies, or in an 
electronically formatted record keeping system.
    (ii) The educational institution has an employee (or employees) 
physically present at the location with administrative capability who 
is able to discuss with or explain to VA the relationship between the 
student's

[[Page 38660]]

record and the enrollment information as certified to VA.
    (iii) The educational institution location with administrative 
capability can specify the location where the student is training when 
sending certifications concerning that student to VA.
    (iv) The educational institution location with administrative 
capability maintains a list of all programs approved for VA training 
for each location for which it has administrative capability.
    (v) The educational institution location with administrative 
capability has all required records for each location for which it has 
administrative capability available for review by State approving 
agency representatives and or VA officials.
    (2) If the educational institution wants to consolidate 
administrative capability at one or more locations in a different 
State, the State approving agency will refer the matter to the 
Director, Education Service for approval. The Director, Education 
Service may approve the request in whole or in part when the 
educational institution can demonstrate the following:
    (i) The location with administrative capability maintains all 
records and accounts that Sec.  21.4209 requires for each student 
attending the location (or locations) without administrative 
capability. These records may be originals, certified copies, or in an 
electronically formatted record keeping system.
    (ii) The educational institution has an employee (or employees) 
physically present at the location with administrative capability who 
is able to discuss with or explain to VA the relationship between the 
student's record and the enrollment information as certified to VA.
    (iii) The educational institution location with administrative 
capability can identify the location where the student is training when 
sending certifications concerning that student to VA.
    (iv) The educational institution location with administrative 
capability maintains a list of all programs approved for VA training 
for each location for which it has administrative capability.
    (v) The educational institution location with administrative 
capability either--
    (A) Has all required records for each location for which it has 
administrative capability available for review by State approving 
agency representatives and/or VA officials, or
    (B) If located in a different State than the State approving agency 
representative or the VA official, has the ability and agrees to send 
copies of any records requested to the State approving agency 
representative and/or VA official from that location.
    (3) The educational institution may locate the administrative 
capability at its primary administrative offices if the primary 
administrative offices are not co-located at the main campus.
    (4) The State approving agency or the Director, Education Service, 
as the case may be, may withdraw an approval to consolidate 
administrative capability for good cause.

(Authority: 38 U.S.C. 3672)

    (e) Combined approval. The State approving agency will combine the 
approval of courses offered by an extension of an educational 
institution with the approval of the main campus or the branch campus 
that the extension is dependent on. The State approving agency will 
list the extension and courses approved on the notice of approval sent 
to the educational institution pursuant to Sec.  21.4258.

(Authority: 38 U.S.C. 3672)

[FR Doc. 03-16265 Filed 6-27-03; 8:45 am]
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