[Federal Register Volume 72, Number 222 (Monday, November 19, 2007)]
[Proposed Rules]
[Pages 64970-64979]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E7-22298]


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CORPORATION FOR NATIONAL AND COMMUNITY SERVICE

45 CFR Parts 2510, 2513, 2516, 2517, 2520, 2521, 2522, 2523, 2524, 
2540 and 2550

RIN 3045-AA23


AmeriCorps National Service Program

AGENCY: Corporation for National and Community Service.

[[Page 64971]]


ACTION: Proposed rule with request for comments.

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SUMMARY: The Corporation for National and Community Service 
(hereinafter, ``the Corporation'') proposes to amend several provisions 
relating to the AmeriCorps national service program. The proposed 
amendments are technical edits to clarify certain provisions and are 
offered in response to feedback the Corporation has received since its 
2005 AmeriCorps rulemaking.

DATES: To be sure your comments are considered, they must reach the 
Corporation on or before January 18, 2008.

ADDRESSES: You may mail or deliver your comments to Amy Borgstrom, 
Corporation for National and Community Service, 1201 New York Ave., 
NW., Washington, DC 20525. You may also send your comments by facsimile 
transmission to (202) 606-3476, or send them electronically to 
[email protected] or through the Federal government's one-
stop rulemaking Web site at http://www.regulations.gov. Members of the 
public may review copies of all communications received on this 
rulemaking at the Corporation's Washington, DC headquarters.

FOR FURTHER INFORMATION CONTACT: Amy Borgstrom, Docket Manager, 
Corporation for National and Community Service, (202) 606-6930, TDD 
(202) 606-3472. Persons with visual impairments may request this rule 
in an alternate format.

SUPPLEMENTARY INFORMATION:

I. Invitation to Comment

    We invite you to submit comments about these proposed regulations. 
To ensure that your comments have maximum value in helping us develop 
the final regulations, we urge you to identify clearly the specific 
section or sections of the proposed regulations that each comment 
addresses and to arrange your comments in the same order as the 
proposed regulations. During and after the comment period, you may 
inspect all public comments about these proposed regulations by 
contacting the Docket Manager listed in this notice.
    For more information about comments, please visit our Web site at 
http://www.americorps.org/rulemaking.

Assistance to Individuals With Disabilities in Reviewing the Rulemaking 
Record

    On request, we will supply an appropriate aid, such as a reader or 
print magnifier, to an individual with a disability who needs 
assistance to review the comments or other documents in the public 
rulemaking record for these proposed regulations. If you want to 
schedule an appointment for this type of aid, please contact the person 
listed under FOR FURTHER INFORMATION CONTACT.

II. Background

    Under the National and Community Service Act of 1990, as amended 
(hereinafter ``NCSA'' or ``the Act,'' 42 U.S.C. 12501, et seq.), the 
Corporation makes grants to support community service through the 
AmeriCorps program. In addition, the Corporation, through the National 
Service Trust, provides educational awards to and certain interest 
payments on behalf of AmeriCorps participants who successfully complete 
a term of service in an approved national service position.
    On May 20, 2003, the Corporation's Board of Directors (the Board) 
approved a report issued by the Board's Grant-making Task Force in 
which the Task Force recommended that the Corporation undertake efforts 
to streamline and improve our current grant-making processes. Among 
other actions, the Task Force recommended that the Corporation update 
the grant-making review and selection criteria, simplify the 
application process, evaluate the Corporation's grant requirements and 
assess whether requirements should and could be changed, and eliminate 
or streamline annual guidance.
    On February 27, 2004, President Bush issued Executive Order 13331 
aimed at making the national and community service program better able 
to engage Americans in volunteering, more responsive to State and local 
needs, more accountable and effective, and more accessible to community 
organizations, including faith-based organizations. The Executive Order 
directed the Corporation to review and modify its policies as necessary 
to accomplish these goals.
    This rulemaking process is the second of two, originally initiated 
in 2004. The first rulemaking focused on sustainability and the 
limitation on the Federal share of program costs. The first rulemaking 
was completed in July, 2005 and became effective September, 2005. This 
rulemaking is intended chiefly to clarify several changes made in the 
first rulemaking, streamline and improve our current grant-making 
processes, strengthen accountability, and otherwise improve upon the 
operations of the AmeriCorps State and National program.

III. Proposed Rule

Definitions (Sec.  2510.20)

    The proposed rule amends the definition of the term participant to 
acknowledge the frequently used term member as synonymous.

Prohibited Activities: Voter Registration (Sec.  2520.60)

    In 1994, the Corporation issued regulations in part 2520 regarding 
prohibited activities for AmeriCorps members. In 2002, the Corporation 
strengthened the list of prohibited activities by adding items from 
sub-regulatory grant provisions. At that time, the Corporation 
inadvertently omitted the sub-regulatory prohibition on AmeriCorps 
members engaging in voter registration drives in rulemaking. Our 
proposed rule adds this longstanding prohibition to regulation.

Participant Evaluations (Sec.  2522.220)

    The Corporation's regulations require that grantees conduct an end-
of-term evaluation for each AmeriCorps participant. The purpose of this 
evaluation is to answer two questions: (1) Whether the participant is 
eligible to earn an education award; and (2) whether the participant is 
eligible to serve a second or additional term of service.
    Whether a participant is eligible to earn an education award 
depends upon whether the participant completes the agreed-upon term of 
service. Under Section 146 of the Act, a participant is only eligible 
to earn an education award if the participant completed a term of 
service or was released for compelling personal circumstances as 
described in Section 139.
    According to Section 138 of the Act, whether a participant is 
eligible to serve a second term of service depends upon whether the 
participant served ``satisfactorily'' in the first term of service. The 
Act directs the Corporation to issue regulations on the manner and 
criteria for determining whether a participant's service was 
satisfactory.
    Presently, the Corporation's regulations state that, in assessing 
whether a participant's performance was satisfactory, the program must 
assess, among other things, whether the participant completed the 
required number of hours for the term of service and whether the 
participant satisfactorily completed assignments, tasks, and projects.
    The Corporation did not intend to suggest that completion of 
service hours should be a factor in determining whether a participant 
served satisfactorily. The Corporation has long

[[Page 64972]]

considered that those participants who are released for compelling 
personal circumstances may be eligible to serve a second term of 
service in an AmeriCorps program. Likewise, the Corporation has issued 
guidance in the annual AmeriCorps Grant Provisions that those 
participants who are released for cause, but who performed 
satisfactorily for the time they served, may also be eligible to serve 
a second term of service. The completion of service hours signifies 
whether the participant can earn an education award, not whether the 
participant served satisfactorily.
    Our proposed rule amends the Corporation's regulations to clarify 
that those participants who are released for compelling personal 
circumstances, or who are released for cause but who receive a 
satisfactory performance review, may be eligible to serve a second term 
of service in AmeriCorps. To make this clear, in the proposed rule we 
have divided the end-of-term appraisal into two parts: (1) A 
determination of whether the participant earned an education award; and 
(2) a participant performance review to determined whether the 
participant served satisfactorily.
    The participant performance review has been amended in the proposed 
rule to incorporate those participants who are released early. The 
performance review will assess, in addition to any criteria developed 
by the program, whether the participant has satisfactorily completed 
assignments, tasks, or projects, or, for those participants released 
from service early, whether the participant satisfactorily completed 
those assignments, tasks, or projects that the participant could 
reasonably have completed in the time the participant served.
    For those participants who are released for cause, the reason for 
the release should be taken into account in determining whether the 
participant's term of service was satisfactory. A grantee should not 
conclude that a participant's term of service was satisfactory if the 
participant is released for cause unless the grantee determines that 
the reason for departure, while not within the regulatory criteria for 
compelling personal circumstances, is reasonable. For example, a 
participant who quits in order to go on vacation, or is released for 
bad behavior, should not be considered to have served satisfactorily 
regardless of how impressive the participant's service was up to that 
point.
    Notably, individuals who were released for cause from the first 
term of service are required under our regulations to disclose this 
fact on any subsequent application for service with an AmeriCorps 
program. Consequently, the Corporation anticipates that programs will 
consider the facts surrounding the prior release when determining 
whether to select the individual for service.
    The proposed rule would also change the language of the old rule so 
that the evaluation of the participant occurs ``at the end'' of the 
term of service, as opposed to ``upon completion'' of the term. By 
changing the language from ``completion'' to ``end,'' the Corporation 
intends that programs should evaluate all members, even those who do 
not technically complete the originally agreed-upon number of service 
hours.
    Our current regulations require programs to conduct end-of-term and 
mid-term evaluations on AmeriCorps participants. Due to the fact that 
participants occasionally leave service early, either for cause or for 
compelling personal circumstances, the Corporation has determined that 
it is not always practicable or possible for a program to perform an 
official review of a participant's performance in the middle of the 
term. Our proposed rule would remove the requirement that programs 
conduct mid-term evaluations for those participants who leave 
AmeriCorps service early.
    The Corporation also wishes to clarify its intent with regard to 
the documentation of mid-term evaluations. We require programs to 
engage in mid-term evaluations, but have not provided guidance as to 
the structure or content of these reviews. We expect programs to tailor 
mid-term evaluations to fit the particular needs of the individual 
program. Likewise, while we require that a program document that a mid-
term evaluation occurred, there is no specific required format for this 
documentation. Rather, the grantee shall maintain documentation for 
each member that it has determined to be helpful to the program in 
conducting the end-of-term evaluation, whether that be a rating system, 
a narrative, notes from the evaluation interview, or other 
documentation.

Living Allowance Disbursement (Sec.  2522.245)

    The Corporation is in the process of revising the AmeriCorps grant 
provisions and moving requirements with program-wide applicability to 
regulation or to the terms and conditions incorporated into individual 
grants. In the proposed rule, the requirement about how living 
allowances are to be treated and disbursed has been relocated from the 
grant provisions to regulation. There is no new requirement for how 
living allowances must be disbursed; only the location of the 
requirement has changed.
    The intent of this regulation is to ensure that living allowances 
are distributed in a manner that fulfills their purpose. AmeriCorps 
participants are not employees of the programs with which they serve 
and the living allowance is not considered an hourly wage. Rather, the 
living allowance is intended to be a means to support participants' 
basic costs of living to ensure they are able to secure food, clothing, 
and shelter while performing national service. For this reason, it is 
important that programs not treat the living allowance as a wage, and 
not adjust the distribution of the living allowance based on the number 
of hours a participant serves during a given period of time. For 
example, a participant that serves for 50 hours one week and 25 the 
next should receive the same living allowance as if the participant had 
served 50 hours (or 25 hours) in both weeks. Generally, the living 
allowance must not increase or decrease but should remain steady just 
as a participant's living expenses are continuous. However, because the 
living allowance is intended to support a participant's cost of living, 
if the cost of food, housing, transportation, or other necessities in a 
particular area increases, the program may adjust the living allowance 
disbursement accordingly within the overall approved grant amount.
    Just as the amount of the living allowance should not fluctuate, 
the frequency of distribution of the living allowance should be steady 
and reliable. Programs must provide living allowances at regular 
intervals, such as weekly or bi-weekly, so that a participant can have 
regular access to financial support.
    The proposed rule would also codify the existing prohibition on the 
payment of ``lump sums'' to participants who complete their terms of 
service in shorter periods of time than originally anticipated. If a 
participant starts service later than other participants, the program 
may not pay the participant an additional sum to ``make up'' payments 
missed before the participant began. Likewise, if a participant 
completes the term of service ahead of schedule, the program may not 
pay the participant a lump sum equivalent to what the participant would 
have received.

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Waiver of Living Allowance by a Participant (Sec.  2522.240(b)(5))

    The Corporation's grant provisions have long provided that an 
AmeriCorps participant may waive all or part of the living allowance. 
Our proposed rule would add this provision to regulation. A participant 
who waives the living allowance may revoke the waiver at any time and 
may begin receiving a living allowance again prospective to that date. 
The participant may not receive any part of the living allowance 
attributable to the time period during which the living allowance was 
waived.

Applications for the Same Project (Sec.  2522.320)

    Section 130(g) of the Act states that ``the Corporation shall 
reject an application submitted under this section if a project 
proposed to be conducted using assistance requested by the applicant is 
already described in another application pending before the 
Corporation.''
    The Corporation's existing regulations state that ``the Corporation 
will reject an application for a project if an application for funding 
or educational awards for the same project is already pending before 
the Corporation.'' 45 CFR 2522.320.
    Our proposed rule would permit applicants to submit applications 
for the same project in separate, but overlapping, competitions, but 
only under specific conditions designed to prevent the project from 
receiving funding from two different sources. The proposed rule is 
intended to maximize the quality of programs in the AmeriCorps*State 
and National portfolio by giving applicants greater flexibility and 
autonomy in applying for the grant program best suited for their 
particular projects, while avoiding the same project receiving funding 
from two grants.
    To ensure compliance, the proposed rule requires an applicant that 
submits multiple applications to the Corporation to identify any other 
pending application for the same project. By submitting multiple 
applications for the same project under this proposed rule, the 
applicant will be on notice that approval of one by the Corporation 
will be deemed a withdrawal by the applicant of any additional 
application for the same project.
    To clarify the definition of ``same project,'' the proposed rule 
lists criteria by which we will determine whether proposed activities 
and identifying characteristics constitute the same or different 
projects. The Corporation may determine that two or more projects are 
sufficiently different based upon clear distinctions in one or more of 
the criteria considered. However, the criteria in the proposed rule are 
not exhaustive, as the Corporation may consider additional factors in 
determining a project's specific, identifiable activities.
    For the purposes of determining whether two applications cover the 
same project, geographic location will be identified as narrowly as 
possible in order to specify the population served. For example, the 
operation of a homeless shelter in Brooklyn might--depending on the 
proposed activities and identifying characteristics--be considered a 
different project than the operation of a homeless shelter in the 
Bronx.

Performance Measures (Sec.  2522.620)

    The Corporation proposes to remove the requirement that grantees 
report on end outcomes at the end of year three of each program. 
Grantees will continue to be required to submit at least one aligned 
set of performance measures in their applications. These aligned 
measures must include at least one output, an intermediate outcome, and 
an end outcome. Grantees will continue to be required to measure, 
analyze and report upon the outputs and the intermediate outcome. Under 
the proposal, however, the Corporation's national evaluation strategy 
will focus on measuring end outcomes. We are convinced that there is 
significant value in grantees articulating an end outcome for at least 
one performance measure, as it provides a valuable long-term context 
for their work. However, we do not believe it is a prudent investment 
of federal funds to support their measurement of these end outcomes, 
which often will not become evident until more than three years after 
the initial investment. Therefore, we are proposing to relieve grantees 
of the requirement to report end outcomes.

Civil Rights (Sec. Sec.  2540.210 and 2540.215)

    The Corporation requires all recipients of Corporation grants to 
abide by applicable federal non-discrimination laws, including relevant 
provisions of the national service legislation and implementing 
regulations. It is essential that all participants, staff, and 
beneficiaries of programs supported by Corporation grants are aware of 
their rights under these laws and of the availability of the 
Corporation's impartial discrimination complaint process.
    Previously, the Corporation's civil rights notification 
requirements were included in the annual grant provisions. The proposed 
rule will relocate these requirements to regulation. There is no change 
in the requirements, only in the location of the requirements.
    The proposed rule requires grantees to notify participants, staff, 
and beneficiaries of the civil rights requirements and complaint 
procedures by including this information in recruitment materials, 
member contracts, handbooks, manuals, pamphlets, and by posting it in 
conspicuous locations, as appropriate. Grantees should ensure that this 
information is accessible to those participants, staff, and 
beneficiaries who have limited English proficiency, or who are hearing 
or visually impaired by providing it in alternative formats when 
necessary.
    Grantees may obtain sample notification language and other guidance 
on notification, the Corporation's discrimination complaint procedure, 
and other general information on prohibited discrimination by 
contacting the Office of Civil Rights and Inclusiveness, Corporation 
for National and Community Service, 1201 New York Ave., NW., 
Washington, DC 20525, by e-mail at [email protected], or by calling (202) 606-
7503, (202) 606-3472 (TTY).

Use of National Service Insignia (Sec. Sec.  2540.500-560)

    Currently, grant recipients and other entities engaged in providing 
national and community services in cooperation with the Corporation are 
approved to use the national service insignia in accordance with the 
terms and conditions of their agreements with the Corporation. The 
Corporation anticipates continuing to administer approvals to use the 
national insignia in this manner.
    From time to time, however, the Corporation's insignia, including 
the AmeriCorps logo and other logos associated with the Corporation's 
programs, have been used without authorization, including by 
individuals and entities that have no relationship with the 
Corporation. In some cases, the unauthorized use was for commercial 
purposes and other purposes that would not have been approved by the 
Corporation. To better protect the image and integrity of the 
Corporation's programs, ensure compliance with government-wide rules 
against improper endorsement of non-Federal entities, and protect the 
public from possible deception, a new subpart E is proposed to be added 
to part 2540 of Title 45 of the Code of Federal Regulations. The 
proposed regulation would provide notice regarding the restrictions on

[[Page 64974]]

using the Corporation's various insignia and of the possible civil and 
criminal penalties that may incur for unauthorized use of the insignia. 
Depending upon the nature of the violation, under section 425 of the 
Domestic Volunteer Service Act of 1973 (42 U.S.C. 5065) and 18 U.S.C. 
506, 701, and 1017, enforcement of the restriction could result in an 
injunction on the unauthorized use, a monetary fine, or imprisonment.

Disqualification and Forfeiture Based on False or Misleading Statements 
(Sec. Sec.  2540.600-670)

    The Corporation proposes to add a new subpart F to part 2540 to 
address individuals who are admitted to a program or who receive 
program benefits on the basis of false or misleading statements. 
Occasionally, a member, volunteer, or participant in a Corporation-
funded program is discovered to have been admitted to the program or 
accorded a benefit from the program on the basis of false or misleading 
statements. The proposed regulation provides a means for the 
Corporation to revoke the eligibility of a person for participation in 
or a benefit from a national service program if the person was admitted 
to a program or seeks a benefit from a program on the basis of a false 
or misleading statement which includes material omissions or false 
facts that, if known at the time of application or submission of a 
claim, would have resulted in a finding of ineligibility.
    In most cases the criteria for qualification to participate in a 
program or eligibility for a program benefit are set out in the NCSA 
and DVSA, or related appropriations acts. If it is discovered that 
facts material to qualification to participate or eligibility for a 
benefit were false or misleading, the Corporation has an obligation to 
revoke the person's eligibility and refrain from providing a related 
benefit to that person. Additionally, the Corporation may be legally 
obligated to recover funds from the person if funds were received on 
the basis of a false or misleading statement.
    The proposed regulation gives individuals suspected of making false 
or misleading statements the opportunity to respond under a two-tier 
review process before their eligibility is revoked. Where there are 
genuine material facts in dispute, a telephonic or face-to-face meeting 
may be included at the second level of review.
    The intent of the regulation is to provide a mechanism for revoking 
the eligibility of individuals who make a false or materially 
misleading statement in connection with their application to or 
enrollment in a national service program and for forfeiting eligibility 
for a related benefit.
    The action and procedures set out in the proposed regulation are 
intended to supplement, not replace, remedies against offending parties 
that are available under other laws. Depending upon the nature and 
scope of a false statement or misleading statement, other legal action 
may be taken against the offending party under the False Claims Act, 
Program Fraud and Civil Remedies Act of 1986, Suspension and Debarment 
regulations under 45 CFR part 2542, and other applicable laws and 
regulations.

Inspector General Access to Grantee Records (Sec.  2541.420)

    Section 2541.420(e)(1) is amended to specifically add the Inspector 
General among the authorities having access to pertinent grantee 
records. While it has always been understood that the Office of the 
Inspector General is a component of the awarding agency, the rule is 
being amended to match the access to records language in Sec.  2543.53, 
which specifically names the Inspector General among the authorities 
having access to grantee records.

State Commission Composition Requirements (Sec.  2550.50)

    Section 178(d)(1) of the Act states that ``the Chief Executive 
Officer of a State shall ensure, to the maximum extent practicable, 
that the membership for the State commission for the State is diverse 
with respect to race, ethnicity, age, gender, and disability 
characteristics. Not more than 50 percent of the voting members, plus 
one additional member, may be from the same political party.'' Section 
178(c)(5) of the Act states that ``[t]he number of voting members of a 
State commission * * * who are officers or employees of the State may 
not exceed 25 percent * * * of the total membership of the State 
commission.''
    Our proposed amendment to 45 CFR 2550.50 conforms the regulation to 
the specific language in the statute, including a clarification that 
the political affiliation provision applies only to voting members of 
the State commission.

State Plans (Sec.  2550)

    Section 178(e) of the Act requires a State Commission to prepare 
and annually update a national service plan covering a three-year 
period. This Plan, previously referred to as a ``Unified State Plan,'' 
a ``State Service Plan,'' and, presently, a ``State Plan,'' is a 
document that sets forth the State's goals, priorities, and strategies 
for promoting national and community service. The Act specifies several 
components that must be present in the Plan, including the State's 
efforts to convene, collaborate, or otherwise coordinate with diverse 
national and community service groups and agencies to accomplish the 
State's national and community service goals.
    The Act gives latitude to the Corporation to establish additional 
requirements for the contents of the State Plan. Over time, we have 
found that the State's submission of certain information is mutually 
beneficial. For example, to enhance communication and coordination 
between the Corporation and the State, it is useful for us to know how 
the State is utilizing statewide networks of national and community 
service groups to achieve its goals and priorities. In addition, the 
availability of such information serves as a resource for identifying 
best practices to be shared with other States. By including these 
elements with the description of a State Commission's duties we 
eliminated the need to publish state plan requirements as a separate 
part; therefore, we have stricken part 2513.
    Section 2550.80 lists the duties of State entities. Our proposed 
rule conforms paragraph (a) of this section to the statutory list of 
the responsibilities of State entities with regard to preparation of a 
State Plan. In addition, our proposed rule amends this section to 
include the requirement, previously located in part 2513, that the 
State Plan incorporate the State's ``goals, priorities, and strategies 
for promoting national and community service and strengthening its 
service infrastructure, including how Corporation-funded programs fit 
into the plan.'' This groups together relevant information and 
consolidates the regulatory required components of the State Plans. Our 
proposed rule imposes no new requirements for the contents of the State 
Plan, while reserving the Corporation's right to request submission of 
the State Plan in its entirety, in summary, or in part.
    The Corporation uses State Plans principally in understanding the 
State's national and community service goals, priorities, and 
strategies, not in making future funding or monitoring determinations, 
risk-based assessments, or State Standards process evaluations.

Summary of Redesignations

    The proposed rule will change the location of a number of 
regulations. The following table is a guide to the current location of 
a provision and its new location under the proposed rule.

[[Page 64975]]



------------------------------------------------------------------------
             Current  location                   Proposed  location
------------------------------------------------------------------------
2520.65(a)(9).............................  2520.65(a)(10).
2522.240(b)(5)............................  2522.240(b)(6).
2550.80(a)(3).............................  2550(a)(4).
------------------------------------------------------------------------

IV. Effective Dates

    The Corporation intends to make any final rule based on this 
proposal effective no sooner than 30 days after the final rule is 
published in the Federal Register. We will include an implementation 
schedule in the final rule, based on the final rule's date of 
publication.

V. Significant Non-Regulatory Issues

    The Corporation would like to use this opportunity to notify 
grantees and other interested parties of certain non-regulatory 
changes.

Timeframe for Requesting AmeriCorps*State Formula Allocations

    Section 129(a) of the Act (42 U.S.C. 12581(a)) requires the 
Corporation to allocate one-third of its AmeriCorps grants 
appropriation to the States using a population-based formula. If a 
State does not request its full formula allocation, the Act directs the 
Corporation to make a reallotment of unrequested funds to other States 
and Indian tribes.
    To date, we have permitted a State to request less than its full 
formula allocation in the first year, and access the balance of its 
allocation in the second year. Many States took advantage of this 
flexibility and requested their remaining allocation during the second 
year of availability. About two-thirds of the States do not request all 
of the formula funds made available to them in the first fiscal year. 
The specific States that do not request all of their funds vary from 
year to year, depending on the number of applications each state 
receives, the Corporation's maximum cost per member and whether there 
is a cap placed on member enrollment in the National Service Trust.
    Beginning in FY 2008, the deadline for submission of the state's 
formula will be much earlier. Any unrequested funds remaining after the 
deadline will be reallocated to small states whose initial allocations 
are less than $500,000 and for other authorized purposes, as 
appropriate.

Regulatory Flexibility Act

    The Corporation has determined that the regulatory action will not 
result in (1) An annual effect on the economy of $100 million or more; 
(2) a major increase in costs or prices for consumers, individual 
industries, Federal, State, or local government agencies, or geographic 
regions; or (3) significant adverse effects on competition, employment, 
investment, productivity, innovation, or on the ability of United 
States-based enterprises to compete with foreign-based enterprises in 
domestic and export markets. Therefore, the Corporation has not 
performed the initial regulatory flexibility analysis that is required 
under the Regulatory Flexibility Act (5 U.S.C. 601, et seq.) for major 
rules that are expected to have such results.

Other Impact Analyses

    Under the Paperwork Reduction Act, information collection 
requirements which must be imposed as a result of this regulation have 
been reviewed by the Office of Management and Budget under OMB nos. 
3045-0047, 3045-0117, and 3045-0099.
    For purposes of Title II of the Unfunded Mandates Reform Act of 
1995, 2 U.S.C. 1531-1538, as well as Executive Order 12875, this 
regulatory action does not contain any Federal mandate that may result 
in increased expenditures in either Federal, State, local, or tribal 
governments in the aggregate, or impose an annual burden exceeding $100 
million on the private sector.

List of Subjects

45 CFR Part 2510

    Grant programs--social programs, Volunteers.

45 CFR Part 2513

    Grant programs--social programs, Reporting and recordkeeping 
requirements, Volunteers.

45 CFR Part 2516

    Grants administration, Grant programs--social programs.

45 CFR Part 2517

    Grants administration, Grant programs--social programs.

45 CFR Part 2520

    Grant programs--social programs, Volunteers.

45 CFR Part 2521

    Grants administration, Grant programs--social programs.

45 CFR Part 2522

    Grants administration, Grant programs--social programs, Volunteers.

45 CFR Part 2523

    Grant programs--social programs.

45 CFR Part 2524

    Grant programs--social programs, Technical assistance.

45 CFR Part 2540

    Civil rights, Fraud, Grants administration, Grant programs--social 
programs, Trademarks--signs and symbols, Trust, Volunteers.

45 CFR Part 2541

    Grant programs--social programs, Reporting and recordkeeping 
requirements, Investigations.

45 CFR Part 2550

    Grants administration, Grant programs--social programs.
    For the reasons stated in the preamble, under the authority 42 
U.S.C. 12651d, the Corporation for National and Community Service 
proposes to amend chapter XXV, title 45 of the Code of Federal 
Regulations as follows:

PART 2510--OVERALL PURPOSES AND DEFINITIONS

    1. The authority citation for part 2510 continues to read as 
follows:

    Authority: 42 U.S.C. 12501, et seq.

    2. Amend Sec.  2510.20 by adding a new paragraph (3) to the 
definition of ``participant'' to read as follows:


Sec.  2510.20  Definitions.

* * * * *
    Participant. * * *
    (3) A participant may also be referred to by the term member.
* * * * *

PART 2513--[REMOVED AND RESERVED]

    3. Remove and reserve part 2513.

PART 2516--SCHOOL-BASED SERVICE-LEARNING PROGRAMS

    4. The authority citation for part 2516 is revised to read as 
follows:

    Authority: 42 U.S.C. 12521-12551.


Sec.  2516.400  [Amended]

    5. Amend Sec.  2516.400 by removing the reference ``part 2513'' and 
replacing it with ``Sec.  2550.80(a).''


Sec.  2516.410  [Amended]

    6. Amend Sec.  2516.410 (a)(1) by removing the reference ``part 
2513'' and replacing it with ``Sec.  2550.80(a).''


Sec.  2516.500  [Amended]

    7. Amend Sec.  2516.500 (a)(3)(i) by removing the reference ``part 
2513'' and replacing it with ``Sec.  2550.80(a).''

[[Page 64976]]

PART 2517--COMMUNITY-BASED SERVICE-LEARNING PROGRAMS

    8. The authority citation for part 2517 is revised to read as 
follows:

    Authority: 42 U.S.C. 12541-12547.


Sec.  2517.400  [Amended]

    9. Amend Sec.  2517.400 (a)(3) by removing the reference ``part 
2513'' and replacing it with ``Sec.  2550.80(a).''


Sec.  2517.500  [Amended]

    10. Amend Sec.  2517.500 (c)(3) by removing the reference to ``part 
2513'' and replacing it with ``Sec.  2550.80(a).''

PART 2520--GENERAL PROVISIONS: AMERICORPS SUBTITLE C PROGRAMS

    11. The authority citation for part 2520 continues to read as 
follows:

    Authority: 42 U.S.C. 12571-12595.

    12. Amend Sec.  2520.65 by redesignating paragraph (a)(9) as 
(a)(10) and adding a new paragraph (a)(9) to read as follows:


Sec.  2520.60  What activities are prohibited in AmeriCorps subtitle C 
programs?

    (a) * * *
    (9) Conducting a voter registration drive or using Corporation 
funds to conduct a voter registration drive;
* * * * *

PART 2521--ELIGIBLE AMERICORPS SUBTITLE C PROGRAM APPLICANTS AND 
TYPES OF GRANTS AVAILABLE FOR AWARD

    13. The authority citation for part 2521 continues to read as 
follows:

    Authority: 42 U.S.C. 12571-12595.

    14. In Sec.  2521.30, revise paragraph (a)(4) to read as follows:


Sec.  2521.30  How will AmeriCorps subtitle C program grants be 
awarded?

* * * * *
    (a) * * *
    (4) In making subgrants with funds awarded by formula or 
competition under paragraphs (a)(2) or (3) of this section, a State 
must ensure that a minimum of 50 percent of funds going to States will 
be used for programs that operate in the areas of need or on Federal or 
other public lands, and that place a priority on recruiting 
participants who are residents in high need areas, or on Federal or 
other public lands. The Corporation may waive this requirement for an 
individual State if at least 50 percent of the total amount of 
assistance to all States will be used for such programs.
* * * * *

PART 2522--AMERICORPS PARTICIPANTS, PROGRAMS, AND APPLICANTS

    15. The authority citation for part 2522 continues to read as 
follows:

    Authority: 42 U.S.C. 12571-12595.

    16. Amend Sec.  2522.220 by:
    a. Revising the introductory text of paragraph
    (a); and
    b. Revising paragraph (d).
    The revisions will read as follows:


Sec.  2522.220  What are the required terms of service for AmeriCorps 
participants, and may they serve more than one term?

    (a) Term of Service. A term of service may be defined as:
* * * * *
    (d) Participant performance review. For the purposes of determining 
a participant's eligibility for an educational award as described in 
Sec.  2522.240(a) and eligibility to serve a second or additional term 
of service as described in paragraph (c) of this section, each 
AmeriCorps grantee is responsible for conducting a mid-term and end-of-
term performance evaluation. A mid-term performance evaluation is not 
required for a participant who is released early from completing a term 
of service. The end-of-term performance evaluation should consist of:
    (1) A determination of whether the participant:
    (i) Completed the required number of hours described in paragraph 
(a) of this section, making the participant eligible for an educational 
award as described in Sec.  2522.240(a);
    (ii) Was released from service for compelling personal 
circumstances, making the participant eligible for a pro-rated 
educational award as described in Sec.  2522.230(a)(2); or
    (iii) Was released from service for cause, making the participant 
ineligible to receive an educational award for that term of service as 
described in Sec.  2522.230(b)(3); and
    (2) A participant performance review which will assess whether the 
participant:
    (i) Has satisfactorily completed assignments, tasks, or projects, 
or, for those participants released from service early, whether the 
participant satisfactorily completed those assignments, tasks, or 
projects that the participant could reasonably have completed in the 
time the participant served; and
    (ii) Has met any other performance criteria which had been clearly 
communicated both orally and in writing at the beginning of the term of 
service.
* * * * *
    17. Amend Sec.  2522.230 by adding a new paragraph (b)(6) to read 
as follows:


Sec.  2522.230  Under what circumstances may AmeriCorps participants be 
released from completing a term of service, and what are the 
consequences?

* * * * *
    (b) * * *
    (6) An individual's eligibility for a second term of service in 
AmeriCorps will not be affected by release for cause from a prior term 
of service so long as the individual received a satisfactory end-of-
term performance review as described in Sec.  2522.240(d)(2) for the 
period served in the first term.
* * * * *
    18. Amend Sec.  2522.240 by:
    a. Revising the heading of paragraph (b)(4);
    b. Redesignating paragraph (b)(5) as (b)(6); and
    c. Adding a new paragraph (b)(5). The revisions and additions will 
read as follows:


Sec.  2522.240  What financial benefits do AmeriCorps participants 
serving in approved AmeriCorps positions receive?

* * * * *
    (b) * * *
    (4) Waiver or reduction of living allowance for programs. * * *
    (5) Waiver or reduction of living allowance by participants. A 
participant may waive all or part of the receipt of a living allowance. 
The participant may revoke this waiver at any time during the 
participant's term of service. If the participant revokes the living 
allowance waiver, the participant may begin receiving his or her living 
allowance prospective to the date of the revocation; a participant may 
not receive any portion of the living allowance that may have accrued 
during the waiver period.
* * * * *
    19. Add a new Sec.  2522.245 to read as follows:


Sec.  2522.245  How are living allowances disbursed?

    A living allowance is not a wage and programs may not pay living 
allowances on an hourly basis. Programs must distribute the living 
allowance at regular intervals and in regular increments, and may 
increase living allowance payments only on the basis of increased 
living expenses such as food, housing, or transportation. Living 
allowance payments may only be made to a participant during the 
participant's term of service and must cease when the

[[Page 64977]]

participant concludes the term of service. Programs may not provide a 
lump sum payment to a participant who completes the originally agreed-
upon term of service in a shorter period of time.
    20. Revise Sec.  2522.320 to read as follows:


Sec.  2522.320  Under what conditions may I submit more than one 
application for the same project?

    You may submit more than one application for the same project only 
if:
    (a) You submit the applications in separate competitions (i.e., 
National Direct, State, Education Award Program); and
    (b) You disclose in each application that there is another 
application for the same project pending before the Corporation.
    21. Add new Sec. Sec.  2522.330 and 2522.340 to subpart C to read 
as follows:


Sec.  2522.330  What happens to additional applications for the same 
project if the Corporation approves one application?

    If the Corporation approves one application for a project, you will 
be deemed to have withdrawn any other application (or part thereof) for 
the same project.


Sec.  2522.340  How will I know if two projects are the same?

    In determining whether two projects are the same, the Corporation 
will consider, among other characteristics:
    (a) The objectives and priorities of the project;
    (b) The nature of the service provided;
    (c) The program staff, participants, and volunteers involved;
    (d) The geographic location in which the service is provided;
    (e) The population served; and
    (f) The proposed community partnerships.
    22. Amend Sec.  2522.620 by revising paragraph (c) to read as 
follows:


Sec.  2522.620  How do I report my performance measures to the 
Corporation?

* * * * *
    (c) At a minimum you are required to report on outputs at the end 
of year one and outputs and intermediate outcomes at the end of years 
two and three. We encourage you to exceed these minimum requirements.

PART 2523--AGREEMENTS WITH OTHER FEDERAL AGENCIES FOR THE PROVISION 
OF AMERICORPS PROGRAM ASSISTANCE

    23. The authority citation for part 2523 is revised to read as 
follows:

    Authority: 42 U.S.C. 12571-12595.

    24. Amend Sec.  2523.90 by removing the reference ``Sec.  
2522.240(b)(5)'' and replacing it with ``Sec.  2522.240(b)(6).''

PART 2524--AMERICORPS TECHNICAL ASSISTANCE AND OTHER SPECIAL GRANTS

    25. The authority citation for part 2524 is revised to read as 
follows:

    Authority: 42 U.S.C. 12571-12595.


Sec.  2524.30  [Amended]

    26. Amend Sec.  2524.30 (b)(4) by removing the reference 
``2522.240(b)(5)'' and replacing it with ``2522.240(b)(6).''

PART 2540--GENERAL ADMINISTRATIVE PROVISIONS

    27. The authority citation for part 2540 is revised to read as 
follows:

    Authority: E.O. 13331, 69 FR 9911; 18 U.S.C. 506, 701, 1017; 42 
U.S.C. 12653; 42 U.S.C. 5065.

    28. Amend Sec.  2540.210 by adding a new paragraph (d) to read as 
follows:


Sec.  2540.210  What provisions exist to ensure that Corporation-
supported programs do not discriminate in the selection of participants 
and staff?

* * * * *
    (d) Grantees must notify all program participants, staff, 
applicants, and beneficiaries of:
    (1) Their rights under applicable federal nondiscrimination laws, 
including relevant provisions of the national service legislation and 
implementing regulations; and
    (2) The procedure for filing a discrimination complaint with the 
Corporation's Office of Civil Rights and Inclusiveness.
    29. Add a new Sec.  2540.215 to read as follows:


Sec.  2540.215  What should a program participant, staff members, or 
beneficiary do if the individual believes he or she has been subject to 
illegal discrimination?

    A program participant, staff member, or beneficiary who believes 
that he or she has been subject to illegal discrimination should 
contact the Corporation's Office of Civil Rights and Inclusiveness, 
which offers an impartial discrimination complaint resolution process. 
Participation in a discrimination complaint resolution process is 
protected activity; a grantee is prohibited from retaliating against an 
individual for making a complaint or participating in any manner in an 
investigation, proceeding, or hearing.
    30. Add a new Subpart E (consisting of Sec. Sec.  2540.500 through 
2540.560) to read as follows:
Subpart E--Restrictions on Use of National Service Insignia
Sec.
2540.500 What definition applies to this subpart?
2540.510 What are the restrictions on using national service 
insignia?
2540.520 What are the consequences for unauthorized use of the 
Corporation's national service insignia?
2540.530 Are there instances where an insignia may be used without 
getting the approval of the Corporation?
2540.540 Who has authority to approve use of national service 
insignia?
2540.550 Is there an expiration date on approvals for use of 
national service insignia?
2540.560 How do I renew authority to use a national service 
insignia?

Subpart E--Restrictions on Use of National Service Insignia


Sec.  2540.500  What definition applies to this subpart?

    National Service Insignia. For this subpart, national service 
insignia means the former and current seal, logos, names, or symbols of 
the Corporation's programs, products, or services, including those for 
AmeriCorps, VISTA, Learn and Serve America, Senior Corps, Foster 
Grandparents, the Senior Companion Program, the Retired and Senior 
Volunteer Program, the National Civilian Community Corps, and any other 
program or project that the Corporation administers.


Sec.  2540.510  What are the restrictions on using national service 
insignia?

    The national service insignia are owned by the Corporation and only 
may be used as authorized. The national service insignia may not be 
used by non-federal entities for fundraising purposes or in a manner 
that suggests Corporation endorsement.


Sec.  2540.520  What are the consequences for unauthorized use of the 
Corporation's national service insignia?

    Any person who uses the national service insignia without 
authorization may be subject to legal action for trademark 
infringement, enjoined from continued use, and, for certain types of 
unauthorized uses, other civil or criminal penalties may apply.


Sec.  2540.530  Are there instances where an insignia may be used 
without getting the approval of the Corporation?

    All uses of the national service insignia require the written 
approval of the Corporation.


Sec.  2540.540  Who has authority to approve use of national service 
insignia?

    Approval for limited uses may be provided through the terms of a 
written

[[Page 64978]]

grant or other agreement. All other uses must be approved in writing by 
the director of the Corporation's Office of Public Affairs, or his or 
her designee.


Sec.  2540.550  Is there an expiration date on approvals for use of 
national service insignia?

    The approval to use a national service insignia will expire as 
determined in writing by the director of the Office of Public Affairs, 
or his or her designee. However, the authority to use an insignia may 
be revoked at any time if the Corporation determines that the use 
involved is injurious to the image of the Corporation or if there is a 
failure to comply with the terms and conditions of the authorization.


Sec.  2540.560  How do I renew authority to use a national service 
insignia?

    Requests for renewed authority to use an insignia must follow the 
procedures for initial approval as set out in Sec.  2540.540.
    31. Add a new Subpart F (consisting of Sec. Sec.  2540.600 through 
2540.670) to read as follows:
Subpart F--False or Misleading Statements
Sec.
2540.600 What definitions apply to this subpart?
2540.610 What are the consequences of making a false or misleading 
statement?
2540.620 What are my rights if the Corporation determines that I 
have made a false or misleading statement?
2540.630 What information must I provide to contest a proposed 
action?
2540.640 When will the reviewing official make a decision on the 
proposed action?
2540.650 How may I contest a reviewing official's decision to uphold 
the proposed action?
2540.660 If the final decision determines that I received a 
financial benefit improperly, will I be required to repay that 
benefit?
2540.670 Will my qualification to participate or eligibility for 
benefits be suspended during the review process?

Subpart F--False or Misleading Statements


Sec.  2540.600  What definitions apply to this subpart?

    You. For this subpart, you refers to a participant in a national 
service program.


Sec.  2540.610  What are the consequences of making a false or 
misleading statement?

    If it is determined that you made a false or misleading statement 
in connection with your eligibility for a benefit from, or 
qualification to participate in, a Corporation-funded program, it may 
result in the revocation of the qualification or forfeiture of the 
benefit. Revocation and forfeiture under this part is in addition to 
any other remedy available to the Federal Government under the law 
against persons who make false or misleading statements in connection 
with a federally-funded program.


Sec.  2540.620  What are my rights if the Corporation determines that I 
have made a false or misleading statement?

    If the Corporation determines that you have made a false or 
misleading statement in connection with your eligibility for a benefit 
from, or qualification to participate in, a Corporation-funded program, 
you will be hand delivered a written notice, or sent a written notice 
to your last known street address or e-mail address or that of your 
identified counsel at least 15 days before any proposed action is 
taken. The notice will include the facts surrounding the determination 
and the action the Corporation proposes to take. The notice will also 
identify the reviewing official in your case and provide other 
pertinent information. You will be allowed to show good cause as to why 
forfeiture, revocation, the denial of a benefit, or other action should 
not be implemented. You will be given 10 calendar days to submit 
written materials in opposition to the proposed action.


Sec.  2540.630  What information must I provide to contest a proposed 
action?

    Your written response must include specific facts that contradict 
the statements made in the notice of proposed action. A general 
statement of denial is insufficient to raise a dispute over the facts 
material to the proposed action. Your response should also include 
copies of any documents that support your argument.


Sec.  2540.640  When will the reviewing official make a decision on the 
proposed action?

    The reviewing official will issue a decision within 45 days of 
receipt of your response.


Sec.  2540.650  How may I contest a reviewing official's decision to 
uphold the proposed action?

    If the Corporation's reviewing official concludes that the proposed 
action, in full or in part, should still be implemented, you will have 
an opportunity to request an additional proceeding. A Corporation 
program director or designee will conduct a review of the complete 
record, including such additional relevant documents you submit. If 
deemed appropriate, such as where there are material facts in genuine 
dispute, the program director or designee may conduct a telephonic or 
in person meeting. If a meeting is conducted, it will be recorded and 
you will be provided a copy of the recording. The program director or 
designee will issue a decision within 30 days of the conclusion of the 
review of the record or meeting. The decision of the program director 
or designee is final and cannot be appealed further within the agency.


Sec.  2540.660  If the final decision determines that I received a 
financial benefit improperly, will I be required to repay that benefit?

    If it is determined that you received a financial benefit 
improperly, you may be required to reimburse the program for that 
benefit.


Sec.  2540.670  Will my qualification to participate or eligibility for 
benefits be suspended during the review process?

    If the reviewing official determines that, based on the information 
available, there is a reasonable likelihood that you will be determined 
disqualified or ineligible, your qualification or eligibility may be 
suspended, pending issuance of a final decision, to protect the public 
interest.

PART 2541--UNIFORM ADMINISTRATIVE REQUIREMENTS FOR GRANTS AND 
COOPERATIVE AGREEMENTS TO STATE AND LOCAL GOVERNMENTS

    32. The authority citation for part 2541 continues to read as 
follows:

    Authority: 42 U.S.C. 4950, et seq. and 12501, et seq.

    33. Revise Sec.  2541.420(e)(1) to read as follows:


Sec.  2541.420  Retention and access requirements for records.

* * * * *
    (e) Access to records--(1) Records of grantees and subgrantees. The 
awarding agency, the Inspector General, and the Comptroller General of 
the United States, or any of their authorized representatives, shall 
have the right of access to any pertinent books, documents, papers, or 
other records of grantees and subgrantees which are pertinent to the 
grant, in order to make audits, examinations, excerpts, and 
transcripts.
* * * * *

PART 2550--REQUIREMENTS AND GENERAL PROVISIONS FOR STATE 
COMMISSIONS AND ALTERNATIVE ADMINISTRATIVE ENTITIES

    34. The authority citation for part 2550 continues to read as 
follows:

    Authority: 42 U.S.C. 12638.


[[Page 64979]]


    35. Amend Sec.  2550.50 by revising paragraph (e) to read as 
follows:


Sec.  2550.50  What are the composition requirements and other 
requirements, restrictions or guidelines for State Commissions?

* * * * *
    (e) Other composition requirements. To the extent practicable, the 
chief executive officer of a State shall ensure that the membership for 
the State commission is diverse with respect to race, ethnicity, age, 
gender, and disability characteristics. Not more than 50 percent plus 
one of the voting members of a State commission may be from the same 
political party. In addition, the number of voting members of a State 
commission who are officers or employees of the State may not exceed 
25% of the total membership of that State commission.
* * * * *
    36. Amend Sec.  2550.80 by revising paragraph (a) to read as 
follows:


Sec.  2550.80  What are the duties of the State entities?

* * * * *
    (a) Development of a three-year, comprehensive national and 
community service plan and establishment of State priorities. The State 
entity must develop and annually update a Statewide plan for national 
service covering a three year period that is consistent with the 
Corporation's broad goals of meeting human, educational, environmental, 
and public safety needs and meets the following minimum requirements:
    (1) The plan must be developed through an open and public process 
(such as through regional forums or hearings) that provides for the 
maximum participation and input from a broad cross-section of 
individuals and organizations, including national service programs 
within the State, community-based agencies, organizations with a 
demonstrated record of providing educational, public safety, human, or 
environmental services, residents of the State, including youth and 
other prospective participants, State Educational Agencies, traditional 
service organizations, labor unions, and other interested members of 
the public.
    (2) The plan must ensure outreach to diverse, broad-based community 
organizations that serve underrepresented populations by creating State 
networks and registries or by utilizing existing ones.
    (3) The plan must set forth the State's goals, priorities, and 
strategies for promoting national and community service and 
strengthening its service infrastructure, including how Corporation-
funded programs fit into the plan.
    (4) The plan may contain such other information as the State 
commission considers appropriate and must contain such other 
information as the Corporation may require.
    (5) The plan must be submitted, in its entirety, in summary, or in 
part, to the Corporation upon request.
* * * * *
    37. Add a new Sec.  2550.85 to read as follows:


Sec.  2550.85  How will the State Plan be assessed?

    The Corporation will assess the quality of your State Plan as 
evidenced by:
    (a) The development and quality of realistic goals and objectives 
for moving service ahead in the State;
    (b) The extent to which proposed strategies can reasonably be 
expected to accomplish stated goals; and
    (c) The extent of input in the development of the State plan from a 
broad cross-section of individuals and organizations as required by 
Sec.  2550.80(a)(1).

    Dated: November 8, 2007.
Frank R. Trinity,
General Counsel.
 [FR Doc. E7-22298 Filed 11-16-07; 8:45 am]
BILLING CODE 6050-$$-P