[Federal Register Volume 79, Number 92 (Tuesday, May 13, 2014)]
[Proposed Rules]
[Pages 27230-27233]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2014-10943]
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DEPARTMENT OF EDUCATION
34 CFR Chapter III
[Docket ID ED-2014-OSERS-0027]
Proposed Priority--Assistive Technology: Alternative Financing
Program
[CFDA Number: 84.224D.]
AGENCY: Office of Special Education and Rehabilitative Services,
Department of Education.
ACTION: Proposed priority.
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SUMMARY: The Assistant Secretary for Special Education and
Rehabilitative Services proposes a priority under the Assistive
Technology Alternative Financing Program. The Assistant Secretary may
use this priority for competitions in fiscal year (FY) 2014 and later
years. This priority is designed to ensure that the Department funds
high-quality assistive technology alternative financing programs that
meet rigorous standards in order to enable individuals with
disabilities to access and acquire assistive technology devices and
services necessary to achieve education, community living, and
employment goals.
DATES: We must receive your comments on or before June 12, 2014.
ADDRESSES: Submit your comments through the Federal eRulemaking Portal
or via postal mail, commercial delivery, or hand delivery. We will not
accept comments submitted by fax or by email or those submitted after
the comment period. To ensure that we do not receive duplicate copies,
please submit your comments only once. In addition, please include the
Docket ID at the top of your comments.
Federal eRulemaking Portal: Go to www.regulations.gov to
submit your comments electronically. Information on using
Regulations.gov, including instructions for accessing agency documents,
submitting comments, and viewing the docket, is available on the site
under ``Are you new to the site?''
Postal Mail, Commercial Delivery, or Hand Delivery: If you
mail or deliver your comments about this notice, address them to Brian
Bard, U.S. Department of Education, 400 Maryland Avenue SW., Room 5021,
Potomac Center Plaza (PCP), Washington, DC 20202-2800.
Privacy Note: The Department's policy is to make all comments
received from members of the public available for public viewing in
their entirety on the Federal eRulemaking Portal at
www.regulations.gov. Therefore, commenters should be careful to include
in their comments only information that they wish to make publicly
available.
FOR FURTHER INFORMATION CONTACT: Brian Bard. Telephone: (202) 245-7345.
If you use a telecommunications device for the deaf (TDD) or a text
telephone (TTY), call the Federal Relay Service (FRS), toll free, at 1-
800-877-8339.
SUPPLEMENTARY INFORMATION:
Invitation to Comment: We invite you to submit comments regarding
this notice. To ensure that your comments have maximum effect in
developing the final priority, we urge you to identify clearly the
specific topic that each comment addresses.
We invite you to assist us in complying with the specific
requirements of Executive Orders 12866 and 13563 and their overall
requirement of reducing regulatory burden that might result from this
proposed priority. Please let us know of any further ways we could
reduce potential costs or increase potential benefits while preserving
the effective and efficient administration of the program.
During and after the comment period, you may inspect all public
comments about this notice in Room 5025, 550 12th Street SW., PCP,
Washington, DC, between the hours of 8:30 a.m. and 4:00 p.m.,
Washington, DC time, Monday through Friday of each week except Federal
holidays.
[[Page 27231]]
Assistance to Individuals with Disabilities in Reviewing the
Rulemaking Record: On request, we will provide an appropriate
accommodation or auxiliary aid to an individual with a disability who
needs assistance to review the comments or other documents in the
public rulemaking record for this notice. If you want to schedule an
appointment for this type of accommodation or auxiliary aid, please
contact the person listed under FOR FURTHER INFORMATION CONTACT.
Purpose of Program: The goal of the Assistive Technology
Alternative Financing Program is to provide funds to allow greater
access by people with disabilities to affordable financing for the
purchase of specialized technologies they need to live independently,
succeed at school and work, and otherwise lead active and productive
lives.
Program Authority: Consolidated Appropriations Act, 2014 (Pub.
L. 113-76)
Applicable Program Regulations: (a) The Education Department
General Administrative Regulations (EDGAR) in 34 CFR parts 74, 75, 77,
79, 80, 81, 82, 84, 86, 97, 98, and 99. (b) The Education Department
suspension and debarment regulations in 2 CFR part 3485.
Note: The regulations in 34 CFR part 79 apply to all applicants
except federally recognized Indian tribes.
Note: The regulations in 34 CFR part 86 apply to institutions of
higher education only.
Note: In general, EDGAR applies to these grants, except to the
extent it is inconsistent with the applicable statute for the
program.
Proposed Priority:
This notice contains one proposed priority.
Assistive Technology Alternative Financing Program.
Background:
Many individuals with disabilities do not have the private
financial resources to purchase the AT they need. In addition, programs
such as Medicaid, Medicare, and vocational rehabilitation cannot meet
the growing demand for AT. Financial loan services, such as alternative
financing programs (AFPs), offer individuals with disabilities
affordable options that can significantly enhance their access to AT.
These programs offer alternatives to the traditional payment options of
public assistance and out-of-pocket financing, and maximize
independence and community participation by individuals with
disabilities through the acquisition of AT.
Between 2000 and 2006, the Office of Special Education and
Rehabilitative Services (OSERS) awarded competitive one-year grants to
33 States under title III of the Assistive Technology Act of 1998 (AT
Act of 1998) for the establishment, maintenance, or expansion of AFPs.
The AFPs feature one or more alternative financing mechanisms that
provide loans for individuals with disabilities and their family
members, guardians, advocates, and authorized representatives to
purchase AT devices and services.
Although only funded for one year, these AFPs were required to
implement a sustainability plan and maintain permanent programs that
continue project activities after the end of the project period. The 33
States that were awarded grants during fiscal years 2000 through 2006
received a cumulative total of $60,285,260 in Federal funding. All of
these AFPs are still operating. From FY 2000 through the end of FY
2012, AFPs using alternative financing mechanisms such as a revolving
loan or partnership loan program processed 13,593 loans totaling
$148,021,369 in financial assistance for the purchase of AT devices and
services, an amount more than twice the original Federal funding.
To build upon the success of these AFPs and to help individuals
with disabilities purchase assistive technology devices, the
Consolidated Appropriations Act, 2012 (Pub. L. 112-74) provided
$1,996,220 for competitive grants to support AFPs in FY 2012; and the
Continuing Appropriations Act, 2013 (Pub. L. 113-46), provided an
additional $1,891,806 to support AFPs in FY 2013. FY 2012 and 2013
funds were used to establish three new AFPs and to expand two existing
high performing AFPs. There are currently a total of 36 AFPs.
The Consolidated Appropriations Act of 2014 (the Act) provides
$2,000,000 for competitive grants to support AFPs that provide for the
purchase of AT devices, such as a low-interest loan fund, an interest
buy-down program, a revolving loan fund, a loan guarantee, or an
insurance program. The Act requires applicants for these grants to
provide an assurance that, and information describing the manner in
which, the AFP will expand and emphasize consumer choice and control.
It also specifies that State agencies and community-based disability
organizations that are directed by and operated for individuals with
disabilities shall be eligible to compete. In addition, language in the
Manager's Statement accompanying the Act provides that applicants
should incorporate credit-building activities in their programs,
including financial education and information about other possible
funding sources. Successful applicants must emphasize consumer choice
and control and build programs that will provide financing for the full
array of AT devices and services and ensure that all people with
disabilities, regardless of type of disability or health condition,
age, level of income, and residence have access to the program.
While all States can apply, the Department's objective is to
establish AFPs in States that have not previously received funding from
the Federal Government for this purpose or to expand small or
underfunded AFPs that have received less than $1 million from
competitions under title III of the AT Act of 1998 during FYs 2000
through 2006 and under the Appropriations Acts during FY 2012 and 2013.
Proposed Priority:
The Assistant Secretary for Special Education and Rehabilitative
Services proposes a priority to fund one-year grant awards to support
AFPs that assist individuals with disabilities to obtain financial
assistance for AT devices and services.
Under this priority, applicants must establish or expand one or
more of the following types of AFPs:
(1) A low-interest loan fund.
(2) An interest buy-down program.
(3) A revolving loan fund.
(4) A loan guarantee or insurance program.
(5) Another mechanism that is approved by the Secretary.
AFPs must be designed to allow individuals with disabilities and
their family members, guardians, advocates, and authorized
representatives to purchase AT devices or services. If family members,
guardians, advocates, and authorized representatives (including
employers who have been designated by an individual with a disability
as an authorized representative) receive AFP support to purchase AT
devices or services, the purchase must be solely for the benefit of an
individual with a disability.
To be considered for funding, an applicant must identify the type
or types of AFP(s) to be supported by the grant and submit all of the
following assurances:
(1) Permanent Separate Account: An assurance from the applicant
that--
(a) All funds that support the AFP, including funds repaid during
the life of the program, will be deposited in a permanent separate
account and identified and accounted for separately from any other
funds;
(b) If the grantee administering the program invests funds within
this account, the grantee will invest the
[[Page 27232]]
funds in low-risk securities in which a regulated insurance company may
invest under the law of the State; and
(c) The grantee will administer the funds with the same judgment
and care that a person of prudence, discretion, and intelligence would
exercise in the management of the financial affairs of that person.
(2) Permanence of the Program: An assurance that the AFP will
continue on a permanent basis.
An applicant's obligation to implement the AFP consistent with all
of the requirements, including reporting requirements, continues until
there are no longer any funds available to operate the AFP and all
outstanding loans have been repaid. If a grantee decides to terminate
its AFP while there are still funds available to operate the program,
the grantee must return the funds remaining in the permanent separate
account to the U.S. Department of Education except for funds being used
for grant purposes, such as loan guarantees for outstanding loans.
However, before closing out its grant, the grantee also must return any
principal and interest remitted to it on outstanding loans and any
other funds remaining in the permanent separate account, such as funds
being used as loan guarantees for those loans.
(3) Consumer Choice and Control: An assurance that, and information
describing the manner in which, the AFP will expand and emphasize
consumer choice and control.
(4) Supplement-Not-Supplant: An assurance that the funds made
available through the grant to support the AFP will be used to
supplement and not supplant other Federal, State, and local public
funds expended to provide alternative financing mechanisms.
(5) Use and Control of Funds: An assurance that--funds comprised of
the principal and interest from the account described in paragraph (1)
Permanent Separate Account of this priority will be available solely to
support the AFP.
This assurance regarding the use and control of funds applies to
all funds derived from the AFP including the original Federal award,
AFP funds generated by either interest bearing accounts or investments,
and all principal and interest paid by borrowers of the AFP who are
extended loans from the permanent separate account.
(6) Indirect Costs: An assurance that the percentage of the funds
used for indirect costs will not exceed 10 percent of the portion of
the grant award that is used annually for program administration
(excluding funds used for loan activity).
For each 12-month budget period, grantees must recalculate their
allowable indirect cost rate, which may not exceed 10 percent of the
portion of the grant award that is used annually for program
administration related to the AFP.
(7) Administrative Policies and Procedures: An assurance that the
applicant receiving a grant under this priority will submit to the
Secretary for review and approval within the 12 month project period
the following policies and procedures for administration of the AFP:
(a) A procedure to review and process in a timely manner requests
for financial assistance for immediate and potential technology needs,
including consideration of methods to reduce paperwork and duplication
of effort, particularly relating to need, eligibility, and
determination of the specific AT device or service to be financed
through the program.
(b) A policy and procedure to ensure that individuals are allowed
to apply for financing for a full array of AT devices and services
regardless of type of disability or health condition, age, income
level, location of residence in the State, or type of AT device or
service for which financing is requested through the program. It is
permissible for programs to target individuals with disabilities who
would have been denied conventional financing as a priority for AFP
funding.
(c) A procedure to ensure consumer choice and consumer-controlled
oversight of the program.
(d) A sustainability plan, including information on the percentage
of funds expected to be used for operating expenses and loan capital.
(8) Data Collection: An assurance that the applicant will collect
and report data requested by the Secretary in the format, with the
frequency, and using the method established by the Secretary until
there are no longer any funds available to operate the AFP and all
outstanding loans have been repaid.
(9) Credit Building Activities: An assurance that the AFP will
incorporate credit-building activities into their programs, including
financial education and information about other possible funding
sources.
Competitive Preference Priorities: Within this priority, we propose
two competitive preference priorities.
These priorities are:
Need to Establish an AFP (10 additional points.): This applies to
an applicant located in a State or outlying area where an AFP grant has
not been previously awarded under title III of the AT Act of 1998 or in
FY 2012 or FY 2013 for Assistive Technology Alternative Financing
Programs funded under the Consolidated Appropriations Acts, 2012 and
2013.
Need to Expand an AFP (5 additional points.): This applies to an
applicant located in a State or outlying territory where an AFP grant
has been previously awarded under title III of the AT Act of 1998 or in
FY 2012 or FY 2013 for Assistive Technology Alternative Financing
Programs under the Consolidated Appropriations Act, 2012, but the State
or territory has received less than a total of $1 million in Federal
grant funds under title III of the AT Act of 1998 during fiscal years
2000 through 2006 and the Federal grant funds awarded in FY 2012 and FY
2013 under the Consolidated Appropriations Act, 2012 for the operation
of its AFP.
Types of Priorities:
When inviting applications for a competition using one or more
priorities, we designate the type of each priority as absolute,
competitive preference, or invitational through a notice in the Federal
Register. The effect of each type of priority follows:
Absolute priority: Under an absolute priority, we consider only
applications that meet the priority (34 CFR 75.105(c)(3)).
Competitive preference priority: Under a competitive preference
priority, we give competitive preference to an application by (1)
awarding additional points, depending on the extent to which the
application meets the priority (34 CFR 75.105(c)(2)(i)); or (2)
selecting an application that meets the priority over an application of
comparable merit that does not meet the priority (34 CFR
75.105(c)(2)(ii)).
Invitational priority: Under an invitational priority, we are
particularly interested in applications that meet the priority.
However, we do not give an application that meets the priority a
preference over other applications (34 CFR 75.105(c)(1)).
Final Priority:
We will announce the final priority in a notice in the Federal
Register. We will determine the final priority after considering
responses to this notice and other information available to the
Department. This notice does not preclude us from proposing additional
priorities, requirements, definitions, or selection criteria, subject
to meeting applicable rulemaking requirements.
Note: This notice does not solicit applications. In any year in
which we choose to use this priority, we invite applications through
a notice in the Federal Register.
[[Page 27233]]
Executive Orders 12866 and 13563
Regulatory Impact Analysis
Under Executive Order 12866, the Secretary must determine whether
this regulatory action is ``significant'' and, therefore, subject to
the requirements of the Executive order and subject to review by the
Office of Management and Budget (OMB). Section 3(f) of Executive Order
12866 defines a ``significant regulatory action'' as an action likely
to result in a rule that may--
(1) Have an annual effect on the economy of $100 million or more,
or adversely affect a sector of the economy, productivity, competition,
jobs, the environment, public health or safety, or State, local or
tribal governments or communities in a material way (also referred to
as an ``economically significant'' rule);
(2) Create serious inconsistency or otherwise interfere with an
action taken or planned by another agency;
(3) Materially alter the budgetary impacts of entitlement grants,
user fees, or loan programs or the rights and obligations of recipients
thereof; or
(4) Raise novel legal or policy issues arising out of legal
mandates, the President's priorities, or the principles stated in the
Executive order.
This proposed regulatory action is not a significant regulatory
action subject to review by OMB under section 3(f) of Executive Order
12866.
We have also reviewed this proposed regulatory action under
Executive Order 13563, which supplements and explicitly reaffirms the
principles, structures, and definitions governing regulatory review
established in Executive Order 12866. To the extent permitted by law,
Executive Order 13563 requires that an agency--
(1) Propose or adopt regulations only on a reasoned determination
that their benefits justify their costs (recognizing that some benefits
and costs are difficult to quantify);
(2) Tailor its regulations to impose the least burden on society,
consistent with obtaining regulatory objectives and taking into
account--among other things and to the extent practicable--the costs of
cumulative regulations;
(3) In choosing among alternative regulatory approaches, select
those approaches that maximize net benefits (including potential
economic, environmental, public health and safety, and other
advantages; distributive impacts; and equity);
(4) To the extent feasible, specify performance objectives, rather
than the behavior or manner of compliance a regulated entity must
adopt; and
(5) Identify and assess available alternatives to direct
regulation, including economic incentives--such as user fees or
marketable permits--to encourage the desired behavior, or provide
information that enables the public to make choices.
Executive Order 13563 also requires an agency ``to use the best
available techniques to quantify anticipated present and future
benefits and costs as accurately as possible.'' The Office of
Information and Regulatory Affairs of OMB has emphasized that these
techniques may include ``identifying changing future compliance costs
that might result from technological innovation or anticipated
behavioral changes.''
We are issuing this proposed priority only on a reasoned
determination that its benefits would justify its costs. In choosing
among alternative regulatory approaches, we selected those approaches
that would maximize net benefits. Based on the analysis that follows,
the Department believes that this regulatory action is consistent with
the principles in Executive Order 13563.
We also have determined that this regulatory action would not
unduly interfere with State, local, and tribal governments in the
exercise of their governmental functions.
In accordance with both Executive orders, the Department has
assessed the potential costs and benefits, both quantitative and
qualitative, of this regulatory action. The potential costs are those
resulting from statutory requirements and those we have determined as
necessary for administering the Department's programs and activities.
The benefits of the Assistive Technology Alternative Financing
Program have been well established since FY 2000 through the
successful, ongoing performance of alternative financing programs
funded under title III of the AT Act of 1998. This proposed priority
would promote financial loan programs that will better prepare and
assist individuals with disabilities to achieve education, community
living, and employment goals in today's challenging economy.
Intergovernmental Review: This program is subject to Executive
Order 12372 and the regulations in 34 CFR part 79. One of the
objectives of the Executive order is to foster an intergovernmental
partnership and a strengthened federalism. The Executive order relies
on processes developed by State and local governments for coordination
and review of proposed Federal financial assistance.
This document provides early notification of our specific plans and
actions for this program.
Accessible Format: Individuals with disabilities can obtain this
document in an accessible format (e.g., braille, large print,
audiotape, or compact disc) on request to the program contact person
listed under FOR FURTHER INFORMATION CONTACT.
Electronic Access to This Document: The official version of this
document is the document published in the Federal Register. Free
Internet access to the official edition of the Federal Register and the
Code of Federal Regulations is available via the Federal Digital System
at: www.gpo.gov/fdsys. At this site you can view this document, as well
as all other documents of this Department published in the Federal
Register, in text or Adobe Portable Document Format (PDF). To use PDF
you must have Adobe Acrobat Reader, which is available free at the
site.
You may also access documents of the Department published in the
Federal Register by using the article search feature at:
www.federalregister.gov. Specifically, through the advanced search
feature at this site, you can limit your search to documents published
by the Department.
Dated: May 7, 2014.
Michael K. Yudin,
Acting Assistant Secretary for Special Education and Rehabilitative
Services.
[FR Doc. 2014-10943 Filed 5-12-14; 8:45 am]
BILLING CODE 4000-01-P