[Federal Register Volume 69, Number 27 (Tuesday, February 10, 2004)]
[Proposed Rules]
[Pages 6227-6228]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 04-2801]


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CORPORATION FOR NATIONAL AND COMMUNITY SERVICE

45 CFR Part 2552

RIN 3045-AA39


The Foster Grandparent Program; Amendments

AGENCY: Corporation for National and Community Service.

ACTION: Proposed rule.

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SUMMARY: These proposed amendments to the regulations governing the 
Foster Grandparent Program (FGP) modify provisions concerning 
deductions for medical expenses and the allowability of certain 
volunteer expense items.

DATES: Submit comments on or before March 26, 2004.

ADDRESSES: You may submit comments, identified by the title of the 
program, by any of the following methods:
    (1) By mail sent to: Corporation for National and Community 
Service, National Senior Service Corps; Attention Peter Boynton, 
Program Officer; 9th Floor, 1201 New York Avenue, NW., Washington, DC 
20525.
    (2) By hand delivery or by courier to the Corporation's mailroom at 
Room 6010 at the mail address given in paragraph (1) above, between 9 
a.m. and 4 p.m. Monday through Friday, except Federal holidays.
    (3) By fax to: (202) 565-2743, Attention Peter Boynton, Program 
Officer.
    (4) Electronically through the Corporation's e-mail address system: 
[email protected].

FOR FURTHER INFORMATION CONTACT: Peter L. Boynton, 202-606-5000, ext. 
554.

SUPPLEMENTARY INFORMATION:

Background

A. Program Description

    The Foster Grandparent Program provides a way for limited-income 
people age 60 and older, to serve as extended family members to 
children and youth with exceptional needs. Foster Grandparents serve 
from 15 to 40 hours a week in schools, hospitals, correctional 
institutions, day-care facilities, Head Start centers, and small 
community-based organizations, both faith-based and secular. They help 
children who have been abused or neglected, mentor troubled teenagers 
and young mothers, and care for premature infants and children with 
physical disabilities. In return for their service, Foster Grandparents 
receive a stipend of $2.65 an hour, accident and liability insurance 
and meals while on duty, reimbursement for transportation, and monthly 
training. More than 30,000 Foster Grandparents tend to the needs of 
275,000 young children and teenagers each year.

B. Medical Expenses Deduction

    Income eligibility for the Foster Grandparent Program is determined 
based on annual income from all sources after deducting medical 
expenses. Currently the allowable medical expenses may not exceed 15 
percent of the applicable income eligibility guideline. In order to 
increase the pool of seniors eligible to serve as Foster Grandparents, 
and in recognition that the cost of medical care and insurance have 
increased significantly, the Corporation proposes to increase the 
ceiling for allowable medical expenses to 50 percent of the applicable 
income eligibility guideline.

C. Volunteer Expenses

    The Foster Grandparent Program regulations currently distinguish 
between volunteer expenses that may be paid or reimbursed with federal 
and required non-federal grant funds and volunteer expenses that must 
be paid by the volunteer station to which a Foster Grandparent is 
assigned. Grant funds may be used only to pay for volunteer stipends, 
insurance, transportation to and from volunteer assignments and 
official project activities, annual physical examinations, meals taken 
on assignment, and service recognition expenses. With the exception of 
certain meals, volunteer stations must pay for all expenses incurred 
while performing volunteer assignments.
    In ``Principles and Reforms for a Citizen Service Act,'' issued by 
President Bush April 9, 2002, the Administration proposed to create 
greater flexibility in the use of Federal resources by easing 
requirements that govern the activities and support of volunteers. The 
proposed amendment would allow Foster Grandparent Program sponsors to 
determine, in consultation with volunteer stations, how best to fund 
volunteer expenses. The respective responsibilities of the sponsor and 
volunteer station for volunteer expenses would be incorporated in the 
memorandum of understanding negotiated by the sponsor with each 
station. Sponsors would be free to maintain the current division of 
responsibility for volunteer expenses but have the flexibility to use 
federal and required non-federal funds to cover any volunteer expense 
when the sponsor determines that doing so would be in the best interest 
of the project. The provisions of the applicable OMB Cost Principles 
Circulars referenced in 2552.93(4) would continue to apply to all 
expenses paid with federal or required non-federal funds.

Impact of Various Acts and Executive Orders

    After carefully reviewing the changes implemented by this 
amendment, and after coordination with the Office of Management and 
Budget, it was determined that:
    (1) This was a significant regulatory action under section 3(f)(4) 
of Executive Order 12866 ``Regulatory Planning and Review'', and 
required a review by the Office of Management and Budget;
    (2) The Corporation hereby certifies that the Regulatory 
Flexibility Act does not apply because there is no ``significant 
economic impact on a substantial number of small entities'';
    (3) That the Unfunded Mandates Reform Act of 1995 (2 U.S.C. chapter 
25, subchapter II) does not apply because the amendment does not result 
in any annual expenditures of $100 million by State, local, Indian 
Tribal governments or the private sector;
    (4) That the Paperwork Reduction Act does not apply because the 
amendments do not impose any additional reporting or record-keeping 
requirements;
    (5) That the Small Business Regulatory Enforcement Fairness Act of 
1996 does not apply because it is not a major rule as defined by 
section 251 of the Small Business Regulatory Enforcement Fairness Act 
of 1996, and would not result in an annual effect on the economy of 
$100 million or more; result in an increase in cost or prices; or have 
significant adverse effects on competition, employment, investment, 
productivity, innovation, or on the ability of United States-based 
companies to compete with foreign-based companies in domestic and 
export markets; and
    (6) That Executive Order 13132, ``Federalism'' does not apply 
because it would not have substantial direct effects on the States or 
the relationship

[[Page 6228]]

between the national government and the States.

List of Subjects in 45 CFR Part 2552

    Aged, Grant programs--social programs, Volunteers.

    For the reasons set forth in the preamble, the Corporation for 
National and Community Service proposes to amend 45 CFR part 2552 as 
follows:

PART 2552--FOSTER GRANDPARENT PROGRAM

    1. The authority citation for part 2552 continues to read as 
follows:

    Authority: 42 U.S.C. 4950 et seq.


Sec. 2552.42  [Amended]

    2. In Sec. 2552.42(c), remove the phrase ``15 percent'' and add in 
its place the phrase ``50 percent''.


Sec. 2552.45  [Amended]

    3. In Sec. 2552.45, add a new paragraph (f), as follows:
* * * * *
    (f) Other Volunteer Expenses. Foster Grandparents may be reimbursed 
for expenses incurred while performing their volunteer assignments 
provided these expenses are described in the Memorandum of 
Understanding negotiated with the volunteer station to which the 
volunteer is assigned and meet all other requirements identified in the 
notice of grant award.


Sec. 2552.93  [Amended]

    4. In Sec. 2552.93, remove paragraph (d) and redesignate paragraphs 
(e) through (i) as (d) through (h) accordingly.

    Dated: February 3, 2004.
Tess Scannell,
Director, National Senior Service Corps.
[FR Doc. 04-2801 Filed 2-9-04; 8:45 am]
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