25036 Federal Register / Vol. 77, No. 82 / Friday, April 27, 2012 / Rules and Regulations 

action for violations of Performance 

Standard 2 as follows: 

* * * * * 

(iv) Performance-based cash 

assistance. In addition to fiscal action 

described in paragraphs (m)(2)(i) 

through (iii) of this section, school food 

authorities may not earn performancebased cash assistance authorized under 

§ 210.4(b)(1) unless immediate 

corrective action occurs. School food 

authorities will not be eligible for the 6 

cents per lunch reimbursement, as 

adjusted, with the beginning of the 

month following the administrative 

review and, at State discretion, for the 

month of review. Performance-based 

cash assistance may resume beginning 

in the first full month the school food 

authority demonstrates to the 

satisfaction of the State agency that 

corrective action has taken place. 

* * * * * 

■ 7. Amend § 210.19 by revising the 

second sentence of paragraph (c)(1) as 

follows: 

§ 210.19 [Amended] 

* * * * * 

(c) * * * 

(1) * * * Fiscal action also includes 

disallowance of funds for failure to take 

corrective action to meet the meal 

requirements in parts 210 and 220 of 

this chapter, including the disallowance 

of performance-based cash assistance 

described in § 210.4(b)(1). * * * 

* * * * * 

Dated: April 20, 2012. 

Kevin Concannon, 

Under Secretary, Food, Nutrition and 

Consumer Services. 

[FR Doc. 2012–10229 Filed 4–26–12; 8:45 am] 

BILLING CODE 3410–30–P 

DEPARTMENT OF AGRICULTURE 

National Institute of Food and 

Agriculture 

7 CFR Part 3434 

RIN 0524–AA39 

Hispanic-Serving Agricultural Colleges 

and Universities (HSACU) Certification 

Process 

AGENCY: National Institute of Food and 

Agriculture, USDA. 

ACTION: Final rule. 

SUMMARY: This final rule establishes the 

process and procedures to certify a 

qualifying college or university as a 

Hispanic-Serving Agricultural Colleges 

and Universities (HSACU) institution. 

NIFA will publish 7 CFR part 3434 in 

the Code of Federal Regulations to 

chronicle the eligibility criteria colleges 

and universities must satisfy in order to 

be certified as HSACU institutions by 

the Secretary of Agriculture. The Food, 

Conservation, and Energy Act of 2008 

(FCEA) amended section 1404 of the 

National Agricultural Research, 

Extension, and Teaching Policy Act of 

1977 to add a definition for a new group 

of cooperating educational institutions 

known as Hispanic-Serving Agricultural 

Colleges and Universities. Section 1404 

defines HSACUs as colleges and 

universities that qualify as Hispanicserving Institutions (HSIs) and offer 

associate, bachelors, or other accredited 

degree programs in agriculture-related 

fields. HSACUs do not include 1862 

land-grant institutions, as defined in the 

Agricultural Research, Extension, and 

Education Reform Act of 1998. 

A separate part, 7 CFR part 3437, will 

be published in the future to provide 

specific administrative provisions for 

the HSACU Endowment Program (e.g., 

applicability of regulations, purpose, 

definitions, eligibility, use of funds, 

administrative duties, and other 

sections, as appropriate). 

DATES: This final rule is effective April 

27, 2012. 

FOR FURTHER INFORMATION CONTACT: 

Matthew Lockhart, Senior Policy 

Specialist; National Institute of Food 

and Agriculture; U.S. Department of 

Agriculture; STOP 2299; 1400 

Independence Avenue SW., 

Washington, DC 20250–2299; Voice: 

(202) 559–5088; Email: 

mlockhart@nifa.usda.gov. 

SUPPLEMENTARY INFORMATION: 

Background and Purpose 

Section 7101 of the Food, 

Conservation, and Energy Act of 2008 

(FCEA) (Pub. L. 110–246) amended 

section 1404 of the National 

Agricultural Research, Extension, and 

Teaching Policy Act of 1977, 7 U.S.C. 

3103, to add a definition for a new 

group of cooperating educational 

institutions known as Hispanic-serving 

agricultural colleges and universities 

(HSACUs). Section 1404 defines 

HSACUs as colleges or universities that 

qualify as ‘‘Hispanic-serving 

institutions,’’ as that term is defined in 

Section 1101a of title 20, and that offer 

associate, bachelors, or other accredited 

degree programs in agriculture-related 

fields. An exception is made to the 

HSACU definition so that it does not 

include 1862 institutions as defined in 

Section 2 of the Agricultural Research, 

Extension, and Education Reform Act of 

1998 (7 U.S.C. 7601). 

Section 7129 of the FCEA authorizes 

the following five new programs for 

HSACUs: (1) HSACU Endowment Fund 

(formula-based); (2) HSACU Equity 

Grants Program (formula-based); (3) 

HSACU Institutional Capacity-Building 

Grants Program (competitive); (4) 

HSACU Extension Grants Program 

(competitive); and (5) HSACU 

Fundamental and Applied Research 

Grants Program (competitive). Funding 

for these programs is subject to the 

availability of appropriations. 

In addition, the FCEA amends section 

406(b) of the Agricultural Research, 

Extension, and Education Reform Act of 

1998, 7 U.S.C. 7626, to expand the 

eligibility for NIFA Integrated Research, 

Education, and Extension Competitive 

Grants Programs to include HSACUs. 

NIFA’s mission is to work with 

university partners to advance research, 

extension, and higher education in the 

food, agricultural, and related 

environmental and human sciences to 

benefit people, communities, and the 

nation. 

The rules for funds distributed to the 

HSACUs from the HSACU Endowment 

Fund shall be contained within 7 CFR 

part 3437. 

Solicitation of Stakeholder Input and 

Publication of the Proposed Rule 

Because HSACUs were not 

specifically named in the authorizing 

statute, NIFA was required to establish 

the eligibility criteria to designate 

HSACUs based on the definition 

provided in the legislation, which stated 

that HSACUs are defined as HSIs that 

offer ‘‘agriculture-related programs.’’ On 

September 24, 2008, NIFA published a 

Federal Register notice [73 FR 54988– 

54989] to announce a public meeting to 

be held on October 12, 2008, at the 

Hyatt Regency in Denver, Colorado, to 

discuss the definition of HSACUs and 

the new HSACU programs. The notice 

also allowed stakeholders to submit 

written comments on the 

implementation of HSACU programs 

and the HSACU certification process by 

October 27, 2008. 

Twenty individuals, from 17 

institutions and 2 organizations, 

provided oral comments during this 

public meeting. NIFA also received 17 

written comments from individuals, 

academic institutions, and 

organizations. A transcript of the public 

meeting and a scanned copy of all 

written comments are available for 

review on the NIFA Web site at the 

following web page: www.nifa.usda.gov/ 

business/reporting/stakeholder/ 

hsacu.html. 

NIFA considered all comments 

received in the construction of the 

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Federal Register / Vol. 77, No. 82 / Friday, April 27, 2012 / Rules and Regulations 25037 

eligibility criteria and the development 

of the proposed rule, which was 

published at 76 FR 34187–34192 on 

June 13, 2011 with a 60-day comment 

period. The publication of the proposed 

rule for the HSACU certification process 

marked the first time a list of 

agriculture-related fields and eligible 

institutions were made available to the 

public. The proposed rule also 

established explicit eligibility criteria 

for academic institutions to meet if they 

wish to pursue HSACU certification. 

Response to Comments on Notice of 

Proposed Rulemaking and Revisions 

Included in Final Rule 

Comments on the proposed rule were 

required to be received by August 12, 

2011, to be considered in the 

formulation of the final regulations. 

NIFA received 14 sets of comments from 

individuals, academic institutions, and 

the Hispanic Association of Colleges 

and Universities (HACU). NIFA 

considered all comments received and 

made revisions in the final rule based 

on several recommendations. The 

comments received provided valuable 

insight on how NIFA could administer 

the HSACU certification process in a 

more equitable and consistent manner 

across schools of different sectors (2- 

year and 4-year schools) and regions. 

Number of HSACU Institutions 

There is a strong preference among 

stakeholders to limit the number of 

eligible institutions, by way of a 

rigorous certification process, during the 

initial phase of the implementation 

process to maximize the impact of 

limited funding available. Several 

commentors expressed support for the 

rigorous certification process and 

provided suggestions to further enhance 

the process. One of these commentors 

remarked that careful implementation 

would ensure that benefits go to those 

that need them the most. Another 

commentor recognized the certification 

process, as outlined in the proposed 

rule, as thoughtful and fair. A third 

commentor requested that NIFA pay 

special attention to the number of 

institutions receiving HSACU 

certification given limited resources as 

constraining the number of HSACUs 

would optimize funding opportunities 

for HSACUs. A fourth commentor 

encouraged NIFA to remain diligent in 

maintaining high standards for 

certification and remain rigorous in its 

definitions. A fifth commentor remarked 

that given scarce and limited funds, the 

focus of support should be directed 

toward institutions that can maximize 

public funds to the most efficient and 

highest productive levels possible. 

NIFA fully supports a rigorous 

certification process by instilling high 

standards in the eligibility criteria. 

However, there is no basis to limit the 

number of HSACUs if institutions meet 

the eligibility requirements as defined 

in the statute and this regulation. 

Eligibility Criteria 

In response to stakeholders’ call for a 

rigorous certification process, NIFA 

explored different possibilities to hold 

institutions accountable through 

quantifiable outcomes involving 

Hispanic students and agriculturerelated fields if they were to receive 

HSACU certification. In March 2010, the 

American Enterprise Institute released a 

report, ‘‘Rising to the Challenge,’’ which 

noted that HSI designation was a direct 

result of enrollment data (input) rather 

than retention or graduation data 

(outcome). In the proposed rule, NIFA 

included a measure based on degrees 

awarded to the eligibility criteria to hold 

institutions accountable for the 

retention and graduation of Hispanic 

students in agriculture-related fields. 

NIFA determined that a stipulation 

based on degrees awarded would 

provide institutions with an incentive to 

take on a proactive role to focus on 

graduating Hispanic students in 

agriculture-related fields, thus 

strengthening the rigorousness of the 

HSACU certification process. Hence, 

NIFA concluded that granting HSACU 

certification to HSIs with agriculturerelated programs where at least one 

Hispanic student obtained a degree in 

an agriculture-related field would 

provide the best interpretation of the 

intent behind the legislation that 

established the new HSACU category. 

Two commentors recommended that 

NIFA avoid basing eligibility on a single 

year of data as this would create 

unmanageable funding volatility from 

year to year, which may hurt or impair 

growth and development of Hispanicserving programs in institutions that are 

unable to consistently stay on the 

HSACU list. Another commentor 

mentioned that the only certain result of 

the proposed single year criterion is that 

it will reduce the pool of eligible 

institutions. Yet another commentor 

pointed out that a small program may 

fail to graduate any Hispanic student in 

a given year while a number of Hispanic 

students are enrolled and expected to 

graduate in the following years. 

After the publication of the proposed 

rule, an additional year of data from the 

National Center for Education Statistics 

became available to NIFA. An analysis 

on the additional year of data confirmed 

the volatility caused by a single year 

criterion. For the purpose of this 

analysis, Year 1 represents the data we 

had prior to the publication of the 

proposed rule (Fall 2009 enrollment and 

2008–09 completions data) and Year 2 

represents the data we received after the 

publication of the proposed rule (Fall 

2010 enrollment and 2009–10 

completions data). Of the 57 HSIs that 

awarded a degree in an agriculturerelated field to a Hispanic student in 

Year 1, 19 (33%) did not meet the 

eligibility criteria in Year 2. Of the 70 

HSIs that met the eligibility criteria in 

Year 2, 32 (46%) did not meet the 

eligibility criteria in Year 1. In other 

words, only 38 schools would have 

received HSACU certification in both 

years while 51 schools would have 

received HSACU certification in only 

one of the two years. Based on this 

information, NIFA recognized that a 

single year criterion created an 

unintended bias that harms smaller 

programs while schools with larger 

student populations may be able to 

effortlessly graduate a single Hispanic 

student in any given year. 

When NIFA combined two years of 

completions data and used a percentagebased standard, the bias concerns 

between larger and smaller schools were 

significantly reduced, if not eliminated 

altogether. Given that HSIs are defined 

in Federal law as institutions of higher 

education with at least 25% Hispanic 

Full-Time Equivalent (FTE) student 

enrollment, it stands to reason that a 

percentage-based yardstick for 

graduating Hispanic students in 

agriculture-related programs should be 

proportional to the institution’s 

Hispanic enrollment, meaning that 

institutions should receive HSACU 

designation if Hispanic students receive 

at least 25% of the degrees awarded in 

agriculture-related programs. However, 

NIFA recognizes that a large number of 

HSIs became a HSI within the last few 

years and this trend is expected to 

continue over the next several years as 

the Hispanic demographic continues to 

grow. As of this writing, there are more 

than 200 institutions with Hispanic 

FTEs that fall in the 15% to 24% range 

of their student enrollment. These 

institutions are identified as ‘‘emerging 

HSIs’’ and are generally expected to 

become HSIs within the next few years. 

For a newly-designated HSI, its first 

graduating class (as a HSI) would be 

composed of students who entered the 

institution at a time the institution was 

not classified as a HSI, thus the 25% 

graduation benchmark would exclude 

many newly-designated HSIs at a time 

when they are building up a pipeline of 

Hispanic students in their agriculturerelated programs. In recognition of the 

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25038 Federal Register / Vol. 77, No. 82 / Friday, April 27, 2012 / Rules and Regulations 

‘‘emerging HSIs’’ category, NIFA will 

establish the graduation benchmark at 

15%. 

NIFA has amended Part 3434.4(b)(4) 

to reflect that institutions will not 

receive HSACU certification if their 

Hispanic students receive less than 15% 

of degrees awarded from agriculturerelated programs from the two most 

recent academic years. The list of 

HSACUs for Fiscal Year (FY) 2012 will 

be based on (1) completions data from 

2008–09 and 2009–10, and (2) 

enrollment data from Fall 2010. NIFA 

identified 71 institutions that will meet 

the eligibility criteria and receive 

HSACU certification for FY 2012 

(October 1, 2011 to September 30, 2012). 

Agriculture-Related Fields 

NIFA incorporated a suggestion from 

the listening session to utilize the 

Classification of Instructional Programs 

(CIP) coding system developed by the 

U.S. Department of Education’s National 

Center for Education Statistics as an 

instrument to identify agriculturerelated programs. The CIP coding 

system provides a taxonomic scheme 

that supports accurate tracking and 

reporting of fields of study and program 

completions activity. The CIP is 

organized on three levels: the 2-digit 

series represent the most general 

groupings of related programs, the 4- 

digit series are intermediate groupings 

of programs, and the 6-digit codes 

represent specific instructional 

programs. More information about CIP 

codes is available at http://nces.ed.gov/ 

ipeds/cipcode. 

Two commentors expressed 

satisfaction in seeing that CIP codes 

were used to identify agriculture-related 

programs. Four commentors suggested 

that NIFA consider adding various CIP 

codes to the list of agriculture-related 

fields such as Horticulture, Biology, 

Nutrition Sciences, Sustainability 

Studies, and Veterinary/Animal Health 

Technology. 

NIFA wishes to point out that 

Horticulture is already in the list of 

agriculture-related fields (01.06 group). 

NIFA agrees that Nutrition Sciences 

(30.1901), Sustainability Studies 

(30.3301), and Veterinary/Animal 

Health Technology/Technician and 

Veterinary Assistant (51.0808) should be 

added to the list as these specific 

instructional programs are agriculturerelated. However, including a broad 

subject such as Biology that includes 

several instructional programs that are 

not related to agriculture would go 

against stakeholders’ wishes for a 

rigorous certification process, so NIFA 

will not include Biology in the list of 

agriculture-related programs. 

NIFA has added Nutrition Sciences 

(30.1901), Sustainability Studies 

(30.3301), and Veterinary/Animal 

Health Technology/Technician and 

Veterinary Assistant (51.0808) to the list 

in Appendix A of this part. 

Duration of Certification 

Three commentors felt that certifying 

schools one year at a time would create 

undue burden on the institutions. Two 

of these commentors further 

recommended that HSACU 

recertification occur every five years. 

Prior to the publication of the proposed 

rule, NIFA explored the feasibility of 

granting certifications for a period of 

five years as this would provide a sense 

of continuity and sustainability of 

program delivery. However, HSACUs 

must meet the eligibility requirements 

in the year they receive funds as a 

HSACU, thus if the institution did not 

meet the eligibility criteria at some 

point during the five-year certification 

period, the certification would be 

revoked immediately. Given this 

perspective, NIFA decided to go with a 

one-year certification period and NIFA 

further believes that an annual 

certification process will incentivize 

schools to remain focused on their 

eligibility status on an ongoing basis. 

Bias Against a Group of Institutions 

Three commentors expressed concern 

on varying levels regarding potential 

bias against a group of institutions 

either by sector (2-year or 4-year 

schools) or by region/state. NIFA 

performed a thorough analysis on the 

data provided by the National Center for 

Education Statistics (U.S. Department of 

Education) and confirmed the fairness 

and soundness of the certification 

process. The composition of 71 HSACUs 

(listed in Appendix B) is comparable to 

the HSI population (293 schools) by 

sector, region, and state as evidenced by 

the data provided in the Composition of 

HSACUs section. 

Composition of HSACUs 

Based on the eligibility criteria 

provided in this regulations along with 

the most recent reports made available 

to us from the U.S. Department of 

Education’s National Center for 

Education Statistics (Completions data 

from the 2008–09 and 2009–10 

academic years and Enrollment data 

from the Fall 2010 term), 71 college and 

universities meet the HSI and 

agriculture-related field criteria (see 

Appendix B for a complete list of the 71 

schools). Of the 71 schools up for 

certification, 32 are 2-year institutions 

(45%) and 39 are 4-year institutions 

(55%). Thirty-three schools are in the 

Western region (47%), 32 schools are in 

the Southern region (45%), 3 schools are 

in the North Central region (4%), and 3 

schools are in the Northeastern region 

(4%). The following tables offer a 

detailed look at the breakdown by 

sector, region, and state for both 

HSACUs and HSIs, including the 

difference in percentage points between 

HSACUs and HSIs within each category. 

Sector # HSACUs % of HSACUs # HSIs % of HSIs Difference 

2-year institutions ................................................................. 32 45 150 51 6% 

4-year institutions ................................................................. 39 55 143 49 6% 

Total .............................................................................. 71 100 293 100 ........................

Region # HSACUs % of HSACUs # HSIs % of HSIs Difference 

North Central ........................................................................ 3 4 18 6 2% 

Northeastern ........................................................................ 3 4 23 8 4% 

Southern ............................................................................... 32 45 122 42 3% 

Western ................................................................................ 33 47 130 44 3% 

Total .............................................................................. 71 100 293 100 ........................

State # HSACUs % of HSACUs # HSIs % of HSIs Difference 

Arizona ................................................................................. 3 4 8 3 1% 

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State # HSACUs % of HSACUs # HSIs % of HSIs Difference 

California .............................................................................. 22 31 89 30 1% 

Colorado ............................................................................... ........................ ........................ 5 2 2% 

Connecticut .......................................................................... ........................ ........................ 1 <1 <1% 

Florida .................................................................................. 3 4 16 5 1% 

Georgia ................................................................................ ........................ ........................ 1 <1 <1% 

Illinois ................................................................................... 2 3 13 4 1% 

Indiana ................................................................................. ........................ ........................ 1 <1 <1% 

Kansas ................................................................................. 1 1 4 1 None 

Maryland .............................................................................. ........................ ........................ 1 <1 <1% 

Massachusetts ..................................................................... ........................ ........................ 2 1 1% 

New Jersey .......................................................................... ........................ ........................ 5 2 2% 

New Mexico ......................................................................... 7 10 24 8 2% 

New York ............................................................................. 3 4 14 5 1% 

Oregon ................................................................................. ........................ ........................ 1 <1 <1% 

Puerto Rico .......................................................................... 14 20 56 19 1% 

Texas ................................................................................... 15 21 49 17 4% 

Washington .......................................................................... 1 1 3 1 None 

Total .............................................................................. 71 100 293 100 ........................

With this composition, HSACUs are 

clearly in line with HSIs in terms of 

representation across states, regions, 

and institution types. 

Additional Comments and Other 

Revisions to Proposed Rule 

HSACU certification will be based on 

‘‘degrees awarded’’ and ‘‘completions 

data’’ rather than ‘‘graduates’’ and 

‘‘graduation data’’ respectively. This 

revision was made to be consistent with 

the terminology used by the U.S. 

Department of Education’s National 

Center for Education Statistics. 

Two comments essentially served as 

an appeal by the commentors for their 

respective academic institutions which 

were excluded from the list of HSACU 

institutions in the proposed rule. A 

response to each appeal will be handled 

independently from the regulatory 

process. 

Section 3434.8(a) has been revised to 

accurately reflect that an institution not 

listed in Appendix B, rather than 

Section 3434.6, of this Part may submit 

an appeal. 

Methodology for HSACU Certification 

The annual certification process 

begins when NIFA obtains the latest 

report from the U.S. Department of 

Education’s National Center for 

Education Statistics that lists all HSIs 

and the degrees conferred by these 

institutions during the most recently 

completed academic year. NIFA will use 

this report to identify HSIs that 

conferred a degree in an instructional 

program that appears in Appendix A of 

this Part and to confirm that over the 

last two years at least 15% of the 

degrees in agriculture-related fields 

were awarded to Hispanic students. The 

resulting institutions are eligible to be 

certified as a HSACU (Appendix B). 

NIFA will announce the list of 

schools with HSACU certification 

through a notice in the Federal Register 

and post the list on the NIFA Web site 

in July of each year. HSACU 

certifications will remain valid for a 

period of one year, and this process will 

be repeated on an annual basis 

thereafter. NIFA expects to make these 

annual announcements during the 

month of July to allow time for appeals 

to take their course and be addressed by 

the start of the following fiscal year. 

NIFA will permit HSIs that are not 

granted HSACU certification to submit 

an appeal within 30 days of NIFA’s 

announcement of HSACU institutions. 

The appellant must submit a request for 

review to the NIFA official specified in 

the notification with details on the 

nature of the disagreement and include 

supporting documents. The appeal 

procedure will consist of two levels to 

allow an institution to request further 

review on its case should the initial 

NIFA review result in a rejection of the 

appeal. 

Timeline for Implementing Regulations 

In addition to this final regulation, 

which addresses the certification 

process, NIFA will publish regulations 

for the HSACU Endowment Fund in 

2012. NIFA also plans to create 

informational web pages to provide 

detailed information and procedures for 

all HSACU programs. 

Administrative Requirements for the 

Final Rulemaking 

Executive Order 12866 

This action has been determined to be 

not significant for purposes of Executive 

Order 12866, and therefore has not been 

reviewed by the Office of Management 

and Budget. This final regulation will 

not create a serious inconsistency or 

otherwise interfere with an action taken 

or planned by another agency; nor will 

it materially alter the budgetary impact 

of entitlements, grants, user fees, or loan 

programs; nor will it have an annual 

effect on the economy of $100 million 

or more; nor will it adversely affect the 

economy, 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. 

Furthermore, it does not raise a novel 

legal or policy issue arising out of legal 

mandates, the President’s priorities, or 

principles set forth in the Executive 

Order. 

Regulatory Flexibility Act of 1980 

This final rule has been reviewed in 

accordance with the Regulatory 

Flexibility Act of 1980, as amended by 

the Small Business Regulatory 

Enforcement Fairness Act of 1996, 5 

U.S.C. 601–612. The Department 

concluded that the rule will not have a 

significant economic impact on a 

substantial number of small entities. 

The rule does not involve regulatory 

and informational requirements 

regarding businesses, organizations, and 

governmental jurisdictions subject to 

regulation. 

Paperwork Reduction Act (PRA) 

This action does not impose an 

information collection burden under the 

provisions of the Paperwork Reduction 

Act of 1995, 44 U.S.C. 3501 et seq. 

Catalog of Federal Domestic Assistance 

This final regulation applies to the 

Federal assistance program 

administered by NIFA under the Catalog 

for Federal Domestic Assistance (CFDA) 

No. 10.310, Agriculture and Food 

Research Initiative (AFRI). New CFDAs 

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25040 Federal Register / Vol. 77, No. 82 / Friday, April 27, 2012 / Rules and Regulations 

will be established for each HSACU 

program as funds are appropriated. 

Unfunded Mandates Reform Act of 1995 

and Executive Order 13132 

The Department has reviewed this 

final rule in accordance with the 

requirements of Executive Order No. 

13132, 64 FR 43255 (August 10, 1999) 

and the Unfunded Mandates Act of 

1995, 2 U.S.C. 1501 et seq., and has 

found no potential or substantial direct 

effects on the States, on the relationship 

between the national government and 

the States, or on the distribution of 

power and responsibilities among the 

various levels of government. As there 

is no Federal mandate contained herein 

that could result in increased 

expenditures by State, local, or tribal 

governments or by the private sector, 

the Department has not prepared a 

budgetary impact statement. 

Executive Order 13175: Consultation 

and Coordination With Indian Tribal 

Governments 

The Department has reviewed this 

final rule in accordance with Executive 

Order 13175, 65 FR 67249 (November 9, 

2000), and has determined that it does 

not have ‘‘tribal implications.’’ The final 

rule does not ‘‘have substantial direct 

effects on one or more Indian tribes, on 

the relationship between the Federal 

Government and Indian tribes, or on the 

distribution of power and 

responsibilities between the Federal 

Government and Indian tribes.’’ 

Clarity of This Regulation 

Executive Order 12866 and the 

President’s Memorandum of June 1, 

1998 require each agency to write all 

rules in plain language. The Department 

invites comments on how to make this 

final rule easier to understand. 

List of Subjects in 7 CFR Part 3434 

Administrative practice and 

procedure, Agricultural research, 

education, extension, Hispanic-serving 

Institutions, Federal assistance. 

For the reasons set forth in the 

preamble, NIFA adds 7 CFR part 3434 

to read as set forth below: 

PART 3434—HISPANIC–SERVING 

AGRICULTURAL COLLEGES AND 

UNIVERSITIES CERTIFICATION 

PROCESS 

Sec. 

3434.1 Applicability of regulations. 

3434.2 Purpose. 

3434.3 Definitions. 

3434.4 Eligibility. 

3434.5 Agriculture-related fields. 

3434.6 Certification. 

3434.7 Duration of certification. 

3434.8 Appeals. 

3434.9 Recertification. 

3434.10 Reporting requirements. 

Appendix A to Part 3434—List of 

Agriculture-Related Fields 

Appendix B to Part 3434—List of HSACU 

Institutions, 2011–2012 

Authority: 7 U.S.C. 3103. 

§ 3434.1 Applicability of regulations. 

This part establishes the process to 

certify and designate a group of eligible 

educational institutions as HispanicServing Agricultural Colleges and 

Universities, as authorized by Section 

7101 of the Food, Conservation, and 

Energy Act of 2008 (FCEA), 7 U.S.C. 

3103; Public Law 110–246. 

§ 3434.2 Purpose. 

The Secretary will follow the 

processes and criteria established in this 

regulation to certify and designate 

qualifying colleges and universities as 

HSACUs. Institutions designated as 

HSACUs will be eligible for five new 

programs authorized by Congress in 

section 7129 of the FCEA as well as for 

other ongoing NIFA programs for which 

HSACUs are now eligible (e.g., 

integrated programs authorized by 

section 406 of the Agricultural Research, 

Extension, and Education Reform Act of 

1998). The five new programs include 

the HSACU Endowment Fund (formulabased), HSACU Institutional Capacity 

Building Grants Program (competitive), 

HSACU Extension Grants Program 

(competitive), HSACU Applied and 

Fundamental Research Grants Program 

(competitive), and HSACU Equity 

Grants Program (formula-based). The 

administrative provisions, including 

reporting requirements, for the HSACU 

Endowment Fund will be established in 

a separate part (7 CFR part 3437). The 

administrative provisions and reporting 

requirements for the other four new 

HSACU programs will be established as 

subparts in 7 CFR part 3430. 

§ 3434.3 Definitions. 

As used in this part: 

Agency or NIFA means the National 

Institute of Food and Agriculture. 

Agriculture-related fields means a 

group of instructional programs that are 

determined to be agriculture-related 

fields of study for HSACU eligibility 

purposes by a panel of National Program 

Leaders at the National Institute of Food 

and Agriculture. 

Department means the United States 

Department of Agriculture. 

Hispanic-serving Institution means an 

institution of higher education that: 

(1) Is an eligible institution, as that 

term is defined at 20 U.S.C. 1101a; and 

(2) Has an enrollment of 

undergraduate full-time equivalent 

students that is at least 25 percent 

Hispanic students, as reported to the 

U.S. Department of Education’s 

Integrated Postsecondary Education 

Data System during the fall semester of 

the previous academic year. 

Secretary means the Secretary of 

Agriculture and any other officer or 

employee of the Department to whom 

the authority involved has been 

delegated. 

§ 3434.4 Eligibility. 

(a) General. To be eligible to receive 

designation as a HSACU, colleges and 

universities must: 

(1) Qualify as Hispanic-serving 

Institutions; and 

(2) Offer associate, bachelors, or other 

accredited degree programs in 

agriculture-related fields pursuant to 

§ 3434.5. 

(b) Non-eligibility. The following 

colleges and universities are ineligible 

for HSACU certification: 

(1) 1862 land-grant institutions, as 

defined in section 2 of the Agricultural 

Research, Extension, and Education 

Reform Act of 1998 (7 U.S.C. 7601); 

(2) Institutions that appear in the Lists 

of Parties Excluded from Federal 

financial and nonfinancial assistance 

and benefits programs (Excluded Parties 

List System); 

(3) Institutions that are not accredited 

by a nationally recognized accredited 

agency or association; and 

(4) Institutions with Hispanic 

students receiving less than 15% of the 

degrees awarded in agriculture-related 

programs over the two most recent 

completed academic years. 

§ 3434.5 Agriculture-related fields. 

(a) The Secretary shall use the 

Classification of Instructional Programs 

(CIP) coding system developed by the 

U.S. Department of Education’s National 

Center for Education Statistics as the 

source of information for all existing 

instructional programs. This source is 

located at http://nces.ed.gov/ipeds/ 

cipcode. 

(b) A complete list of instructional 

programs deemed to be agriculturerelated fields by the Secretary is 

provided in Appendix A to this part. 

This list will include the full six-digit 

CIP code and program title (or major) for 

each agriculture-related instructional 

program. 

(c) The list of agriculture-related 

fields will be updated every five years 

starting in 2015. However, the Secretary 

reserves the right to make changes at 

any time, if deemed appropriate and 

necessary. 

(d) Any changes made in the CIP 

coding system by the U.S. Department 

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Federal Register / Vol. 77, No. 82 / Friday, April 27, 2012 / Rules and Regulations 25041 

of Education may result in a review or 

reevaluation of the list of agriculturerelated fields by the Secretary. 

§ 3434.6 Certification. 

(a) Except as provided in paragraph 

(c) of this section, institutions that meet 

the eligibility criteria set forth in 

§ 3434.4 and offer agriculture-related 

programs in accordance to the criteria 

set forth in § 3434.5 (see list in 

Appendix A to this part) shall be 

granted HSACU certification by the 

Secretary. 

(b) A complete list of institutions with 

HSACU certification shall be provided 

in Appendix B to this part and posted 

on the NIFA Web site at http:// 

www.nifa.usda.gov. 

(c) Institutions with Hispanic students 

receiving less than 15% of degrees 

awarded in agriculture-related programs 

during the two most recent completed 

academic years shall not be granted 

HSACU certification by the Secretary. 

(d) The list of HSACU institutions 

will be updated annually. However, the 

Secretary reserves the right to make 

changes at any time, when deemed 

appropriate and necessary. 

§ 3434.7 Duration of certification. 

(a) Except as provided in paragraphs 

(b) and (c) of this section, HSACU 

certification granted to an institution by 

the Secretary under this part shall 

remain valid for a period of one year. 

(b) Failure to maintain eligibility 

status at any time during the HSACU 

certification period shall result in an 

immediate revocation of HSACU 

certification. 

(c) Failure to remain in compliance 

with reporting requirements or 

adherence to any administrative or 

national policy requirements listed in 

award terms and conditions for any of 

the HSACU programs may result in a 

suspension or an immediate revocation 

of HSACU certification. 

§ 3434.8 Appeals. 

(a) An institution not listed as a 

HSACU in Appendix B to this part may 

submit an appeal to address denial of a 

certification made pursuant to this part. 

Such appeals must be in writing and 

received by the HSACU Appeals Officer, 

Policy and Oversight Division, National 

Institute of Food and Agriculture, U.S. 

Department of Agriculture, 800 9th 

Street SW., Washington, DC 20024 

within 30 days following an 

announcement of institutions 

designated for certification. The 

Appeals Officer will consider the record 

of the decision in question, any further 

written submissions by the institution, 

and other available information and 

shall provide the appellant a written 

decision as promptly as circumstances 

permit. Such appeals constitute an 

administrative review of the decision 

appealed from and are not conducted as 

an adjudicative proceeding. 

(b) Appeals involving an agriculturerelated field of study must include the 

CIP code and program title of the field 

of study (or major). 

(c) Appeals from non-HSI schools will 

not be considered. 

(d) The NIFA Assistant Director of the 

Institute of Youth, Family, and 

Community shall serve as the Appeals 

Officer. 

(e) In considering such appeals or 

administrative reviews, the Appeals 

Officer shall take into account alleged 

errors in professional judgment or 

alleged prejudicial procedural errors by 

NIFA officials. The Appeals Officer’s 

decision may: 

(1) Reverse the appealed decision; 

(2) Affirm the appealed decision; 

(3) Where appropriate, withhold a 

decision until additional materials are 

provided. The Appeals Officer may base 

his/her decision in whole or part on 

matters or factors not discussed in the 

decision appealed from. 

(f) If the NIFA decision on the appeal 

is adverse to the appellant or if an 

appellant’s request for review is 

rejected, the appellant then has the 

option of submitting a request to the 

NIFA Deputy Director for Food and 

Community Resources for further 

review. 

(g) The request for further review 

must be submitted to Policy and 

Oversight Division, National Institute of 

Food and Agriculture, U.S. Department 

of Agriculture, 800 9th Street SW., 

Washington, DC 20024 within 30 days 

following the Appeals Officer’s 

decision. 

(h) No institution shall be considered 

to have exhausted its administrative 

remedies with respect to the 

certification or decision described in 

this part until the NIFA Deputy Director 

for Food and Community Resources has 

issued a final administrative decision 

pursuant to this section. The decision of 

the NIFA Deputy Director for Food and 

Community Resources is considered 

final. 

(i) Appellants shall be notified in 

writing of any decision made by NIFA 

in regards to the appeal. 

§ 3434.9 Recertification. 

(a) The recertification process for a 

HSACU remains the same as the process 

outlined in § 3434.6. 

(b) There is no limit to the number of 

times an institution may be recertified 

as a HSACU. 

(c) In the event an institution is not 

granted recertification due to 

noncompliance with reporting 

requirements for a HSACU program, the 

institution shall be notified in writing 

and given a period of 90 days from the 

date of notification to be in compliance. 

§ 3434.10 Reporting requirements. 

(a) The certification process does not 

involve any reporting requirements. 

(b) Reporting requirements for 

HSACU programs (e.g., HSACU 

Endowment Fund) shall be established 

in separate parts. 

Appendix A to Part 3434—List of 

Agriculture-Related Fields 

The instructional programs listed in this 

appendix are observed to be agriculturerelated fields for HSACU eligibility purposes. 

Programs are listed in numerical order by 

their six-digit CIP code followed by the full 

title of the instructional program, as listed by 

the U.S. Department of Education. 

01.0000, Agriculture, General 

01.0101, Agricultural Business and 

Management, General 

01.0102, Agribusiness/Agricultural Business 

Operations 

01.0103, Agricultural Economics 

01.0104, Farm/Farm and Ranch Management 

01.0105, Agricultural/Farm Supplies 

Retailing and Wholesaling 

01.0106, Agricultural Business Technology 

01.0199, Agricultural Business and 

Management, Other 

01.0201, Agricultural Mechanization, General 

01.0204, Agricultural Power Machinery 

Operation 

01.0205, Agricultural Mechanics and 

Equipment/Machine Technology 

01.0299, Agricultural Mechanization, Other 

01.0301, Agricultural Production Operations, 

General 

01.0302, Animal/Livestock Husbandry and 

Production 

01.0303, Aquaculture 

01.0304, Crop Production 

01.0306, Dairy Husbandry and Production 

01.0307, Horse Husbandry/Equine Science 

and Management 

01.0308, Agroecology and Sustainable 

Agriculture 

01.0309, Viticulture and Enology 

01.0399, Agricultural Production Operations, 

Other 

01.0401, Agricultural and Food Products 

Processing 

01.0504, Dog/Pet/Animal Grooming 

01.0505, Animal Training 

01.0507, Equestrian/Equine Studies 

01.0508, Taxidermy/Taxidermist 

01.0599, Agricultural and Domestic Animal 

Services, Other 

01.0601, Applied Horticulture/Horticultural 

Operations, General 

01.0603, Ornamental Horticulture 

01.0604, Greenhouse Operations and 

Management 

01.0605, Landscaping and Groundskeeping 

01.0606, Plant Nursery Operations and 

Management 

01.0607, Turf and Turfgrass Management 

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01.0608, Floriculture/Floristry Operations 

and Management 

01.0699, Applied Horticulture/Horticultural 

Business Services, Other 

01.0701, International Agriculture 

01.0801, Agricultural and Extension 

Education Services 

01.0802, Agricultural Communication/ 

Journalism 

01.0899, Agricultural Public Services, Other 

01.0901, Animal Sciences, General 

01.0902, Agricultural Animal Breeding 

01.0903, Animal Health 

01.0904, Animal Nutrition 

01.0905, Dairy Science 

01.0906, Livestock Management 

01.0907, Poultry Science 

01.0999, Animal Sciences, Other 

01.1001, Food Science 

01.1002, Food Technology and Processing 

01.1099, Food Science and Technology, 

Other 

01.1101, Plant Sciences, General 

01.1102, Agronomy and Crop Science 

01.1103, Horticultural Science 

01.1104, Agricultural and Horticultural Plant 

Breeding 

01.1105, Plant Protection and Integrated Pest 

Management 

01.1106, Range Science and Management 

01.1199, Plant Sciences, Other 

01.1201, Soil Science and Agronomy, 

General 

01.1202, Soil Chemistry and Physics 

01.1203, Soil Microbiology 

01.1299, Soil Sciences, Other 

01.9999, Agriculture, Agriculture Operations, 

and Related Sciences, Other 

03.0101, Natural Resources/Conservation, 

General 

03.0103, Environmental Studies 

03.0104, Environmental Science 

03.0199, Natural Resources Conservation and 

Research, Other 

03.0201, Natural Resources Management and 

Policy 

03.0204, Natural Resources Economics 

03.0205, Water, Wetlands, and Marine 

Resources Management 

03.0206, Land Use Planning and 

Management/Development 

03.0207, Natural Resources Recreation and 

Tourism 

03.0208, Natural Resources Law Enforcement 

and Protective Services 

03.0299, Natural Resources Management and 

Policy, Other 

03.0301, Fishing and Fisheries Sciences and 

Management 

03.0501, Forestry, General 

03.0502, Forest Sciences and Biology 

03.0506, Forest Management/Forest 

Resources Management 

03.0508, Urban Forestry 

03.0509, Wood Science and Wood Products/ 

Pulp and Paper Technology 

03.0510, Forest Resources Production and 

Management 

03.0511, Forest Technology/Technician 

03.0599, Forestry, Other 

03.0601, Wildlife and Wildlands Science and 

Management 

03.9999, Natural Resources and 

Conservation, Other 

13.1301, Agricultural Teacher Education 

14.0301, Agricultural/Biological Engineering 

and Bioengineering 

19.0501, Foods, Nutrition, and Wellness 

Studies, General 

19.0504, Human Nutrition 

19.0505, Foodservice Systems 

Administration/Management 

19.0599, Foods, Nutrition, and Related 

Services, Other 

30.1901, Nutrition Sciences 

30.3301, Sustainability Studies 

51.0808, Veterinary/Animal Health 

Technology/Technician and Veterinary 

Assistant 

Appendix B to Part 3434—List of 

HSACU Institutions, 2011–2012 

The institutions listed in this appendix are 

granted HSACU certification by the Secretary 

and are eligible for HSACU programs for the 

period starting October 1, 2011 and ending 

September 30, 2012. Institutions are listed 

alphabetically under the state of the school’s 

location, with the campus indicated where 

applicable. 

Arizona (3) 

Arizona Western College 

Phoenix College 

Pima Community College 

California (22) 

Allan Hancock College 

Bakersfield College 

California State Polytechnic UniversityPomona 

California State University-Bakersfield 

California State University-Fullerton 

California State University-Monterey Bay 

California State University-San Bernardino 

College of the Desert 

El Camino Community College District 

Fullerton College 

Hartnell College 

Merced College 

Mt. San Antonio College 

Porterville College 

Reedley College 

San Diego Mesa College 

San Joaquin Delta College 

Santa Ana College 

Southwestern College 

University of California-Merced 

West Hills College Coalinga 

Whittier College 

Florida (3) 

Florida International University 

Miami Dade College 

Saint Thomas University 

Illinois (2) 

City Colleges of Chicago-Harold Washington 

College 

Triton College 

Kansas (1) 

Seward County Community College 

New Mexico (7) 

Central New Mexico Community College 

Eastern New Mexico University-Main 

Campus 

New Mexico Highlands University 

New Mexico Institute of Mining and 

Technology 

Northern New Mexico College 

University of New Mexico-Main Campus 

Western New Mexico University 

New York (3) 

CUNY City College 

CUNY LaGuardia Community College 

Mercy College 

Puerto Rico (14) 

Bayamon Central University 

Institute Tecnologico de Puerto Rico-Manati 

Inter American University of Puerto RicoAguadilla 

Inter American University of Puerto RicoBayamon 

Inter American University of Puerto RicoMetro 

Inter American University of Puerto RicoPonce 

Inter American University of Puerto Rico-San 

German 

Pontifical Catholic University of Puerto RicoPonce 

Universidad Del Turabo 

Universidad Metropolitana 

University of Puerto Rico-Arecibo 

University of Puerto Rico-Medical Sciences 

Campus 

University of Puerto Rico-Rio Piedras 

Campus 

University of Puerto Rico-Utuado 

Texas (15) 

Clarendon College 

Lee College 

Midland College 

Palo Alto College 

Sul Ross State University 

Texas A&M International University 

Texas A&M University-Corpus Christi 

Texas A&M University-Kingsville 

Texas State Technical College-Harlingen 

University of Houston-Clear Lake 

University of Texas at Brownsville 

University of Texas at El Paso 

University of Texas at San Antonio 

University of Texas of the Permian Basin 

University of the Incarnate Word 

Washington (1) 

Heritage University 

Done in Washington, DC, this 15th day of 

March 2012. 

Chavonda Jacobs-Young, 

Acting Director, National Institute of Food 

and Agriculture. 

[FR Doc. 2012–10145 Filed 4–26–12; 8:45 am] 

BILLING CODE 3410–22–P 

SMALL BUSINESS ADMINISTRATION 

13 CFR Part 107 

RIN 3245–AG32 

Small Business Investment 

Companies—Early Stage SBICs 

AGENCY: U.S. Small Business 

Administration. 

ACTION: Final rule. 

SUMMARY: In this final rule, the U.S. 

Small Business Administration (SBA) is 

defining a new sub-category of small 

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