[Federal Register Volume 84, Number 108 (Wednesday, June 5, 2019)]
[Rules and Regulations]
[Pages 25996-25998]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-11727]
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DEPARTMENT OF EDUCATION
34 CFR Part 225
RIN 1810-AB56
Outdated Regulations--Expanding Opportunity Through Quality
Charter Schools Program (CSP)--Grants for Credit Enhancement for
Charter School Facilities
AGENCY: Office of Elementary and Secondary Education, Department of
Education.
ACTION: Final rule.
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SUMMARY: The Secretary amends the CSP--Grants for Credit Enhancement
for Charter School Facilities program regulations to reflect changes
made to title IV of the Elementary and Secondary Education Act of 1965
(ESEA), as amended by the Every Student Succeeds Act (ESSA), to
incorporate relevant statutory changes for the program and its
implementing regulations.
DATES: This final rule is effective June 5, 2019.
FOR FURTHER INFORMATION CONTACT: Clifton Jones, 400 Maryland Avenue SW,
Room 3E211, Washington, DC 20202. Telephone: (202) 205-2204. Email:
[email protected].
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: On December 10, 2015, the ESSA, which
reauthorized the ESEA, as amended by the No Child Left Behind Act of
2001 (NCLB), was signed into law. Therefore, we are revising, in title
34 of the Code of Federal Regulations (CFR), Sec. Sec. 225.1(b),
225.4(a), 225.11(a)(7), and 225.12(a)(1) to reflect specific statutory
changes. The following paragraphs describe the changes we are making to
the regulations and the statutory changes that necessitate them.
Part 225--Credit Enhancement for Charter School Facilities Program
(Sec. 225.1)
Statute: Section 4304 of the ESEA.
Current Regulations: Current Sec. 225.1 provides the purpose of
the Credit Enhancement for Charter School Facilities program. The
regulation was derived from the authorizing statute for the program
under the ESEA, as amended by NCLB, that allowed grantees to use the
grant funds deposited in the reserve account to assist charter schools
to access private sector capital to accomplish either of the following
objectives: (1) The acquisition of an interest in improved or
unimproved real property that is necessary to commence or continue the
operation of a charter school; or (2) the construction of new
facilities, or the renovation, repair, or alteration of existing
facilities, necessary to commence or continue the operation of a
charter school.
Final Regulations: Revised Sec. 225.1 updates the stated purpose
of the Credit Enhancement for Charter School Facilities program. The
regulation is derived from the authorizing statute for the program
under the ESEA, as amended by ESSA, that allows for grantees to use the
funds deposited in the reserve account to assist charter schools to
access private sector capital to accomplish one or more of the
following objectives: (1) The acquisition of an interest in improved or
unimproved real property that is necessary to commence or continue the
operation of a charter school; (2) the construction of new facilities,
or the renovation, repair, or alteration of existing facilities,
necessary to commence or continue the operation of a charter school; or
(3) the predevelopment costs required to assess sites for purposes of
the program and that are necessary to commence or continue the
operation of a charter school.
Reasons: Section 4304(e) of the ESEA, as amended by ESSA, added an
additional program objective for which an eligible entity receiving a
grant under this program may use the funds. Therefore, we are adding
the new program objective to the regulation.
Part 225--Credit Enhancement for Charter School Facilities Program
(Sec. 225.4)
Statute: Section 4310(2) of the ESEA, as amended by ESSA, defines
``charter school.''
Current Regulations: Section 225.4(a) currently defines ``charter
school'' under this program as it was defined in section 5210 of the
ESEA, as amended by NCLB.
Final Regulations and Reasons: The final regulation updates the
definition of ``charter school'' under this program, to reference the
current definition in section 4310(2) of the ESEA, as amended by the
ESSA.
Part 225--Credit Enhancement for Charter School Facilities Program
(Sec. 225.11)
Statute: Section 4303(g)(2) of the ESEA.
Current Regulations: The current regulation provides criteria that
the Secretary will use to evaluate an application for a Credit
Enhancement for Charter School Facilities grant. Section 225.11(a)(7)
references States with strong charter laws, consistent with the
criteria for such laws in section 5202(e)(3) of the ESEA, as amended by
NCLB.
Final Regulations and Reasons: The final regulation updates Sec.
225.11(a)(7) to reference States with strong charter laws, consistent
with the criteria for such laws in section 4303(g)(2) of the ESEA, as
amended by ESSA.
Part 225--Credit Enhancement for Charter School Facilities Program
(Sec. 225.12)
Statute: Section 4304 of the ESEA.
Current Regulations: The current regulation provides that the
Secretary
[[Page 25997]]
may award up to 15 additional points under a competitive preference
priority related to the capacity of charter schools to offer public
school choice in those communities with the greatest need for this
choice based on three factors. The three factors are: (1) The extent to
which the applicant would target services to geographic areas in which
a large proportion or number of public schools have been identified for
improvement, corrective action, or restructuring under Title I of the
ESEA, as amended by NCLB; (2) the extent to which the applicant would
target services to geographic areas in which a large proportion of
students perform below proficient on State academic assessments; and
(3) the extent to which the applicant would target services to
communities with large proportions of students from low-income
families.
Final Regulations: The final regulation updates the first factor in
the list above to refer to the extent to which the applicant would
target services in geographic areas in which a large proportion or
number of public schools have been identified for comprehensive support
and improvement or targeted support and improvement under the ESEA, as
amended by the ESSA.
Reasons: With the passage of the ESEA, as amended by ESSA, the
categories of schools that States must identify under section 1111 have
changed, and thus, the categories of schools in Sec. 225.12 that are
based on these provisions must be updated. Under the ESEA, as amended
by NCLB, the Department could award additional points to applicants
that target services to geographic areas in which a large proportion or
number of public schools have been identified for improvement,
corrective action, or restructuring. However, under the ESEA, as
amended by ESSA, States must now identify schools for comprehensive
support and improvement and targeted support and improvement.
Executive Orders 12866, 13563, and 13771
Waiver of Rulemaking and Delayed Effective Date: Under the
Administrative Procedure Act (APA) (5 U.S.C. 553), the Department
generally offers interested parties the opportunity to comment on
proposed regulations. However, the APA provides that an agency is not
required to conduct notice and comment rulemaking when the agency for
good cause finds that notice and public procedure thereon are
impracticable, unnecessary, or contrary to the public interest. 5
U.S.C. 553(b)(B).
There is good cause here for waiving rulemaking under the APA
because this regulatory action revises regulations to conform with
statutory changes. This regulatory action does not establish or affect
substantive policy. Therefore, under 5 U.S.C. 553(b)(B), the Secretary
has determined that obtaining public comment on this regulatory action
is unnecessary.
Rulemaking is ``unnecessary'' when ``the administrative rule is a
routine determination, insignificant in nature and impact, and
inconsequential to the industry and to the public.'' Utility Solid
Waste Activities Group v. EPA, 236 F.3d 749, 755 (D.C. Cir. 2001),
quoting U.S. Department of Justice, Attorney General's Manual on the
Administrative Procedure Act 31 (1947) and South Carolina v. Block, 558
F. Supp. 1004, 1016 (D.S.C. 1983).
The APA generally requires that regulations be published at least
30 days before their effective date, unless the agency has good cause
to implement its regulations sooner (5 U.S.C. 553(d)(3)). As previously
stated, because the final regulations merely reflect existing statutory
changes, there is good cause to waive the delayed effective dates in
the APA and make the final regulations effective upon publication.
Regulatory Impact Analysis
Under Executive Order 12866, it must be determined 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 final regulatory action is not a significant regulatory action
subject to review by OMB under section 3(f)(1) of Executive Order
12866.
Under Executive Order 13771, for each new regulation that the
Department proposes for notice and comment or otherwise promulgates
that is a significant regulatory action under Executive Order 12866,
and that imposes total costs greater than zero, it must identify two
deregulatory actions. For FY 2019, any new incremental costs associated
with a new regulation must be fully offset by the elimination of
existing costs through deregulatory actions. Because this final rule is
not a significant regulatory action, the requirements of Executive
Order 13771 do not apply.
We have also reviewed these regulations 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 these final regulations only on a reasoned
determination that their benefits justify their costs. In choosing
among alternative regulatory approaches, we selected those
[[Page 25998]]
approaches that maximize net benefits. The Department believes that
these final regulations are consistent with the principles in Executive
Order 13563.
We also have determined that this regulatory action is not
significant and would not unduly interfere with State, local, and
Tribal governments in the exercise of their governmental functions.
In accordance with the Executive orders, the Department has
assessed the potential costs and benefits, both quantitative and
qualitative, of this regulatory action. The final regulations are not
expected to have a significant impact.
Regulatory Flexibility Act Certification
The Regulatory Flexibility Act does not apply to this rulemaking
because there is good cause to waive notice and comment under 5 U.S.C.
553.
Paperwork Reduction Act of 1995
The final regulations do not create any new information collection
requirements.
Intergovernmental Review
The CSP--Grants for Credit Enhancement for Charter School
Facilities are subject to Executive Order 12372 and the regulations in
34 CFR part 79.
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. You may
access the official edition of the Federal Register and the Code of
Federal Regulations at www.govinfo.gov. 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 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.
You may also view this document in text or PDF at the following
site: www.ifap.ed.gov.
(Catalog of Federal Domestic Assistance Number: 84.354A CSP--Grants
for Credit Enhancement for Charter School Facilities.)
List of Subjects in 34 CFR Part 225
Education, Educational facilities, Elementary and secondary
education, Grant programs-education, Reporting and recordkeeping
requirements, Schools.
Dated: May 30, 2019.
Betsy DeVos,
Secretary of Education.
For the reasons discussed in the preamble, the Secretary amends
part 225 of title 34 of the Code of Federal Regulations as follows:
PART 225--CREDIT ENHANCEMENT FOR CHARTER SCHOOL FACILITIES PROGRAM
0
1. The authority citation for part 225 is revised to read as follows:
Authority: 20 U.S.C. 1221e-3, 1232, and 7221c.
Sec. Sec. 225.1 through 225.21 [Amended]
0
2. Sections 225.1 through 225.21 are amended by removing the authority
citations at the end of each section.
0
3. Section 225.1 is further amended by adding paragraph (b)(3) to read
as follows:
Sec. 225.1 What is the Credit Enhancement for Charter School
Facilities Program?
* * * * *
(b) * * *
(3) Assist charter schools with the predevelopment costs required
to assess sites for the purpose of acquiring (by purchase, lease,
donation, or otherwise) an interest (including an interest held by a
third party for the benefit of a charter school) in improved or
unimproved real property or constructing new facilities, or renovating,
repairing, or altering existing facilities, and that are necessary to
commence or continue the operation of a charter school.
* * * * *
Sec. 225.4 [Amended]
0
4. Section 225.4 is further amended by removing the words ``5210 of the
Elementary and Secondary Education Act of 1965, as amended by the No
Child Left Behind Act of 2001'' from paragraph (a) introductory text
and adding in their place the words ``4310(2) of the Elementary and
Secondary Education Act of 1965, as amended by the Every Student
Succeeds Act''.
Sec. 225.11 [Amended]
0
5. Section 225.11 is further amended by removing the words ``5202(e)(3)
of the Elementary and Secondary Education Act of 1965'' from paragraph
(a)(7) and adding in their place the words ``4303(g)(2) of the
Elementary and Secondary Education Act of 1965''.
0
6. Section 225.12 is further amended by revising paragraph (a)(1) to
read as follows:
Sec. 225.12 What funding priority may the Secretary use in making a
grant award?
(a) * * *
(1) The extent to which the applicant would target services to
geographic areas in which a large proportion or number of public
schools have been identified for comprehensive support and improvement
or targeted support and improvement under the ESEA, as amended by the
Every Student Succeeds Act;
* * * * *
[FR Doc. 2019-11727 Filed 6-4-19; 8:45 am]
BILLING CODE 4000-01-P