[Federal Register Volume 69, Number 72 (Wednesday, April 14, 2004)]
[Rules and Regulations]
[Pages 19774-19776]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 04-8405]


=======================================================================
-----------------------------------------------------------------------

CORPORATION FOR NATIONAL AND COMMUNITY SERVICE

45 CFR Part 2552

RIN 3045-AA29


Foster Grandparent Program; Amendments

AGENCY: Corporation for National and Community Service.

[[Page 19775]]


ACTION: Final rule.

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

SUMMARY: These 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.
    The specific amendments are as follows: Section 2552.42(c) is 
modified to increase the ceiling on medical expenses that may be 
deducted for determining income for eligibility purposes from 15 
percent to 50 percent of the applicable income guideline; and 
Sec. Sec.  2552.45 and 2552.93(d) are modified to allow project funds, 
including the required non-federal share, to be used to reimburse 
volunteers for expenses, including transportation costs, incurred while 
performing volunteer assignments, and for purchase of equipment or 
supplies for volunteers on assignment.

DATES: These amendments are effective as of April 14, 2004.

FOR FURTHER INFORMATION CONTACT: Peter L. Boynton, 202-606-5000, ext. 
499.

SUPPLEMENTARY INFORMATION: The Corporation published a notice of 
proposed rulemaking (NPRM) for the Foster Grandparent Program, 45 CFR 
part 2552, in the Federal Register at 69 FR 6227, dated February 10, 
2004.

Summary of Main Comments

    In response to the Corporation's invitation in the notice of 
proposed rulemaking, the Corporation received 37 responses addressing 
the proposed amendments to the Foster Grandparent Program rules. All 37 
supported the proposed amendments modifying the medical expense 
deduction. Those who provided explanations for why they favored these 
amendments generally noted that it would permit a larger number of 
individuals with high medical expenses to serve, thus increasing the 
number of income-eligible volunteers and broadening their recruitment 
potential. Several noted that they have had to turn away volunteers who 
were only slightly over income, and this change would have enabled them 
to be enrolled. Concerning the amendments that would allow project 
funds to be used to reimburse volunteers for certain expenses that now 
may be paid only by the volunteer station, 21 responses expressed 
support, 1 was undecided due to concern about budgetary implications, 
and 15 did not comment. Reasons cited for supporting the amendment 
included: (a) The value of increased flexibility to manage funds in 
accordance with local needs, (b) the special circumstances of rural 
areas, (c) the desire to provide Foster Grandparents with certain 
supplies that they can use on any assignment, regardless of the 
volunteer station they are assigned to, and (d) the flexibility may be 
needed at some future time. Other specific comments and the 
Corporation's responses follow:
    Comment: In addition to increasing the medical expense deduction, 
the income eligibility guidelines for Foster Grandparents should be 
increased or eliminated.
    Response: The Domestic Volunteer Service Act currently stipulates 
that volunteers receiving stipends must have incomes at or below 125% 
of the poverty level. This provision may not be changed by regulation. 
In ``Principles and Reforms for a Citizen Service Act,'' issued by 
President Bush April 9, 2002, the Administration proposed to eliminate 
the limits on income of Foster Grandparents receiving stipends. This 
continues to be the position of the Administration.
    Comment: Expressed concern about how a project would meet any 
additional costs associated with paying for assignment-related 
volunteer expenses.
    Response: Under the modified regulation, grantees are free to 
establish their own policies regarding which assignment-related 
expenses volunteer stations must be responsible for under the 
memorandum of understanding between the grantee and the volunteer 
station. For example, a grantee may, if it wishes, decide to continue 
to require its volunteer stations to be responsible for all such costs. 
However, the modifications give a grantee the flexibility to raise cash 
or in-kind contributions specifically to offset assignment-related 
costs, if it chooses to do so.

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 between the national government and the States.

List of Subjects in 45 CFR Part 2552

    Aged, Grant programs--social programs, Volunteers.


0
For the reasons set forth in the preamble, the Corporation for National 
and Community Service amends 45 CFR part 2552 as follows:

PART 2552--FOSTER GRANDPARENT PROGRAM

0
1. The authority citation for part 2552 continues to read as follows:

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


Sec.  2552.42  [Amended]

0
2. In Sec.  2552.42(c), remove the phrase ``15 percent'' and add in its 
place the phrase ``50 percent''.

0
3. In Sec.  2552.45, add a new paragraph (f), as follows:


Sec.  2552.45  What cost reimbursements are provided to Foster 
Grandparents?

* * * * *
    (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.

[[Page 19776]]

Sec.  2552.93  [Amended]

0
4. In Sec.  2552.93, remove paragraph (d) and redesignate paragraphs 
(e) through (i) as (d) through (h) accordingly.

    Dated: April 7, 2004.
Tess Scannell,
Director, National Senior Service Corps.
[FR Doc. 04-8405 Filed 4-13-04; 8:45 am]
BILLING CODE 6050-$$-P