65606 Federal Register / Vol. 65, No. 212 / Wednesday, November 1, 2000 / Rules and Regulations

DEPARTMENT OF EDUCATION

34 CFR Part 692

RIN 1845–AA18

Special Leveraging Educational

Assistance Partnership Program

AGENCY: Office of Postsecondary

Education, Department of Education.

ACTION: Final regulations.

SUMMARY: These final regulations govern

the new Special Leveraging Educational

Assistance Partnership (SLEAP)

Program. These regulations implement

changes made to the Higher Education

Act of 1965, as amended (HEA), by the

Higher Education Amendments of 1998,

Public Law 105–481 (1998

Amendments).

DATES: Effective Date: These regulations

are effective July 1, 2001.

Implementation Date: The Secretary

has determined, in accordance with

section 482(c)(2)(A) of the HEA (20

U.S.C. 1089(c)(2)(A)), that States may, at

their discretion, choose to implement

the provisions of these final regulations

on or after November 1, 2000. For

further information see

‘‘Implementation Date of These

Regulations’’ under the SUPPLEMENTARY

INFORMATION section of this preamble.

FOR FURTHER INFORMATION CONTACT: Ms.

Jackie Butler, U.S. Department of

Education, 400 Maryland Avenue, SW.,

room 3045, ROB–3, Washington, DC

20202–5447. Telephone: (202) 708–

8242.

If you use a telecommunications

device for the deaf (TDD), you may call

the Federal Information Relay Service

(FIRS) at 1–800–877–8339.

Individuals with disabilities may

obtain this document in an alternative

format (e.g., Braille, large print,

audiotape, or computer diskette) on

request to the contact person listed

under FOR FURTHER INFORMATION

CONTACT.

SUPPLEMENTARY INFORMATION: These

regulations implement a new program,

the SLEAP Program, added by the 1998

Amendments. On July 27, 2000, we

published a notice of proposed

rulemaking (NPRM) in the Federal

Register (65 FR 46324). In the NPRM,

we proposed to amend the Leveraging

Educational Assistance Partnership

(LEAP) Program regulations (part 692) to

incorporate the newly created SLEAP

Program.

In the preamble to the NPRM, we

discussed the proposed regulatory

provisions that were not of a minor or

technical nature, and we will not repeat

that discussion here. Therefore, to fully

understand the SLEAP Program

regulations, we strongly encourage a

review of the NPRM preamble. The

following list summarizes those major

provisions and identifies the pages of

the preamble to the NPRM on which the

discussion can be found:

Section 692.53—What Requirements

Must a State Satisfy To Receive SLEAP

Program Funds?

This section specifies the

requirements that a State must meet to

receive funds under the SLEAP

Program. (page 46325)

Section 692.54—What Eligibility

Requirements Must a Student Satisfy To

Participate in the SLEAP Program?

This section specifies the eligibility

requirements that postsecondary

students must meet to receive SLEAP

financial assistance and nonpostsecondary students must meet to

receive services under the SLEAP

Program. (page 46325)

Section 692.60—What Must a State Do

To Receive an Allotment Under the

SLEAP Program?

This section specifies the procedures

that a State must follow to receive a

SLEAP allotment. (pages 46325–46326)

Section 692.70—How Does the Secretary

Allot Funds to the States?

This section specifies the formula

used to allocate SLEAP funds to the

participating States. (page 46326)

Section 692.71—What Activities May Be

Funded Under the SLEAP Program?

This section specifies the authorized

SLEAP activities. (pages 46326–46327)

Substantive Changes to the NPRM

There are no differences between the

proposed regulations contained in the

NPRM and these final regulations.

Implementation Date of These

Regulations

Section 482(c) of the HEA requires

that regulations affecting programs

under Title IV of the HEA be published

in final form by November 1 prior to the

start of the award year (which begins

July 1) in which they apply. However,

that section also permits the Secretary to

designate any regulation as one that an

entity subject to the regulation may

choose to implement earlier. If the

Secretary designates a regulation for

early implementation, he may specify

when and under what conditions the

entity may implement it. Under this

authority, the Secretary designates

§§ 692.50 through 692.80 of the SLEAP

Program regulations for early

implementation. Upon publication,

these regulations may be implemented

by the States at their discretion.

Analysis of Comments and Changes

The regulaions in this document were

developed through the use of negotiated

rulemaking. Section 492 of the HEA

requires that, before publishing any

proposed regulations to implement

programs under Title IV of the HEA, the

Secretary obtain public involvement in

the development of the proposed

regulations. After obtaining advice and

recommendations, the Secretary must

conduct a negotiated rulemaking

process to develop the proposed

regulations.

These regulations were published in

the Federal Register in proposed form

on July 27, 2000, following the

completion of the negotiated rulemaking

process. The Secretary invited

comments on the proposed regulations

by September 11, and two comments

were received. An analysis of the

comments follows.

We discuss issues under the sections

of the regulations to which they pertain.

Generally, we do not address technical

and other minor changes—and

suggested changes the law does not

authorize the Secretary to make.

Section 692.53—What Requirements

Must a State Satisfy To Receive SLEAP

Program Funds?

Comments: One commenter believed

that a problem exists with the proposed

SLEAP regulations in § 692.53(c)(3)(i).

The referenced regulatory provision

requires the States to comply with the

provisions of § 692.21(e), (f), (g), and (j).

The commenter questioned the

reference to § 692.21(f).

The commenter indicated that some

of the postsecondary authorized SLEAP

activities target students at four-year

institutions. For example, the

commenter indicated that few

community colleges have a teacher

preparation program, yet one of the

allowable activities is a scholarship

program for eligible students who wish

to become teachers. The commenter

further pointed out that the referenced

§ 692.21(f) requires that, with a limited

exception, all public and private

nonprofit institutions of higher

education, including two-year

institutions shall be eligible to

participate in the SLEAP Program. The

commenter indicated that these two

provisions may be inconsistent. The

commenter suggested that if an

institution, such as a two-year

institution, does not have a program that

fits into one of the SLEAP activities, the

State should not have to ensure that

Federal Register / Vol. 65, No. 212 / Wednesday, November 1, 2000 / Rules and Regulations 65607

students at that institution receive

SLEAP funds.

Discussion: We disagree with the

commenter that some of the

postsecondary authorized SLEAP

activities are targeted to four-year

institutions. Neither the statute nor the

regulations for the SLEAP Program

require that the student be enrolled in

a four-year institution. The commenter

used as an example a teacher

preparation program. However, the

statute and regulations refer to a

scholarship program for eligible needy

students who wish to enter teaching.

This SLEAP activity does not require

that the student be enrolled in a fouryear institution or program for the State

to determine that the student wishes to

enter teaching. This is also true for all

other allowable postsecondary

authorized SLEAP activities.

Changes: None.

Comments: The same commenter also

had a problem with the requirement in

§ 692.53(c)(3)(i) that States comply with

the requirement in § 692.21(g). Section

692.21(g) provides that ‘‘if a State

awards grants to independent students

* * *, a reasonable portion of the

State’s allocation must be awarded to

those [independent] students.’’ The

commenter believed that it is

impractical for a State to ensure that a

reasonable portion of the State’s SLEAP

allocation is awarded to independent

students as required by § 692.21(g),

because of the unique and specific

authorized SLEAP activities and the

limited funds available for those

activities. The commenter suggested

that a State only should ensure that

independent students were not

systematically excluded or that the

students were included in the pool of

students considered for SLEAP funding.

Discussion: We disagree. We do not

believe that either the type of authorized

activities under the SLEAP Program or

the amount of funds appropriated for

that program preclude the

implementation of this provision.

Moreover, the requirement of § 692.21(g)

flows from the statutory requirement in

section 415C(b)(7) of the HEA.

Changes: None.

Section 692.54—What Eligibility

Requirements Must a Student Satisfy To

Participate in the SLEAP Program?

Comments: On commenter believed

that the eligibility requirements for nonpostsecondary students in § 692.54(b) of

the proposed SLEAP regulations

exceeds the Secretary’s regulatory

authority. The commenter stated that a

student receiving early intervention,

mentoring, career education, or

transition program services should not

have to meet the applicable citizenship

and residency requirements set forth in

§ 668.33 of the Student Assistance

General Provisions regulations. The

commenter believed that this eligibility

requirement is not required or written in

the statute. The commenter noted that

States typically do not collect this

information and this provision could

serve as a disincentive for States to use

the SLEAP funds for early intervention

activities. The commenter

recommended that the Department not

regulate in this area and allow the States

to define student eligibility for the nonpostsecondary activities.

Discussion: We disagree. The SLEAP

Program is authorized under Title IV,

Part A, Subpart 4 of the HEA. Under

section 415E(c)(1) through (c)(8) of the

HEA, only ‘‘eligible students’’ may

benefit from the activities authorized

under the SLEAP Program, regardless of

whether those activities are

scholarships, grants, work assistance, or

services, and regardless of whether the

students are postsecondary or nonpostsecondary students. Section 484 of

the HEA sets forth the student eligibility

requirements for the financial assistance

provided under programs authorized

under Title IV of the HEA, including

LEAP and SLEAP. Accordingly, there

can be no doubt that ‘‘eligible students’’

receiving scholarships, grants, or work

assistance under the SLEAP Program

must satisfy the applicable provisions of

section 484 of the HEA. We see no

logical basis for defining an ‘‘eligible

student’’ differently for recipients of

non-aid SLEAP activities. Thus, such a

student must also satisfy the applicable

provisions of section 484 of the HEA,

and the citizenship and eligible noncitizenship requirement in section 484

is the one requirement in that section

that is applicable to all recipients of

SLEAP activities.

This position mirrors the one we

adopted for the former National Early

Intervention Scholarship and

Partnership (NEISP) Program. The

NEISP statute also referred to eligible

students for purposes of being a

participant in the early intervention

component. The NEISP regulations

required that the States select only

students for the early intervention

component who were citizens or eligible

noncitizens. Moreover, this position is

consistent with the student eligibility

requirements for the Talent Search and

Upward Bound Programs, each of which

serve students before they enroll in

postsecondary institutions.

Changes: None.

Executive Order 12866

We have reviewed these final

regulations in accordance with

Executive Order 12866. Under the terms

of the order, we have assessed the

potential costs and benefits of this

regulatory action.

The potential costs associated with

the final regulations are those resulting

from statutory requirements and those

we have determined are necessary for

administering this program effectively

and efficiently.

In assessing the potential costs and

benefits, both quantitative and

qualitative, of these final regulations, we

have determined that the benefits of the

regulations justify the costs.

We have also determined that this

regulatory action does not unduly

interfere with State, local, and tribal

governments in the exercise of their

governmental functions.

We discussed the potential costs and

benefits of these final regulations in the

preamble to the NPRM on page 46327.

Paperwork Reduction Act of 1995

The Paperwork Reduction Act of 1995

does not require you to respond to a

collection of information unless it

displays a valid Office of Management

and Budget (OMB) control number.

There are no collections of information

in these final regulations that require

the display of an OMB control number.

Intergovernmental Review

The SLEAP Program is subject to the

requirements of Executive Order 12372

and the regulations in 34 CFR part 79.

The objective of the Executive order is

to foster an intergovernmental

partnership and a strengthened

federalism by relying on processes

developed by State and local

governments for coordination and

review of proposed Federal financial

assistance.

In accordance with the order, we

intend this document to provide early

notification of the Department’s specific

plans and actions for this program.

Assessment of Educational Impact

In the NPRM we requested comments

on whether the proposed regulations

would require transmission of

information that any other agency or

authority of the United States gathers or

makes available.

Based on the response to the NPRM

and on our review, we have determined

that these final regulations do not

require transmission of information that

any other agency or authority of the

United States gathers or makes

available.

65608 Federal Register / Vol. 65, No. 212 / Wednesday, November 1, 2000 / Rules and Regulations

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index.html

(Catalog of Federal Domestic Assistance

Number: 84.069 Special Leveraging

Educational Assistance Partnership Program)

List of Subjects in 34 CFR Part 692

Grant programs—education,

Postsecondary education, State

administered—education, Student aid—

education, Reporting and recordkeeping

requirements.

Dated: October 24, 2000.

Richard W. Riley,

Secretary of Education.

For the reasons stated in the

preamble, the Secretary amends title 34

of the Code of Federal Regulations by

amending part 692 as follows:

PART 692—LEVERAGING

EDUCATIONAL ASSISTANCE

PARTNERSHIP PROGRAM

1. The authority citation for part 692

continues to read as follows:

Authority: 20 U.S.C. 1070c through c-4,

unless otherwise noted.

2. Subpart B is revised to read as

follows:

Subpart B—Special Leveraging

Educational Assistance Partnership

Program

General

Sec.

692.50 What is the Special Leveraging

Educational AssistancePartnership

Program?

692.51 What other regulations apply to the

SLEAP Program?

692.52 What definitions apply to the

SLEAP Program?

692.53 What requirements must a State

satisfy to receive SLEAP Program funds?

692.54 What eligibility requirements must a

student satisfy to participate in the

SLEAP Program?

How Does a State Apply To Participate in the

SLEAP Program?

692.60 What must a State do to receive an

allotment under the SLEAP Program?

What Is the Amount of Assistance and How

May It Be Used?

692.70 How does the Secretary allot funds

to the States?

692.71 What activities may be funded

under the SLEAP Program?

How Does a State Administer Its Community

Service Work-Study Program?

692.80 How does a State administer its

community service work-study program?

* * * * *

Subpart B—Special Leveraging

Educational Assistance Partnership

Program

General

§ 692.50 What is the Special Leveraging

Educational Assistance Partnership

Program?

The Special Leveraging Educational

Assistance Partnership (SLEAP)

Program assists States in providing—

(a) Grants, scholarships, and

community service work-study

assistance to eligible postsecondary

education students who demonstrate

financial need;

(b) Assistance to fund early

intervention, mentoring, and career

education programs for eligible students

enrolled in preschool, elementary

school, or secondary school who

demonstrate financial need; and

(c) Assistance to fund transition

programs for eligible students enrolled

in secondary school who demonstrate

financial need.

(Authority: 20 U.S.C. 1070c–3a)

§ 692.51 What other regulations apply to

the SLEAP Program?

The regulations listed in § 692.3 also

apply to the SLEAP Program.

(Authority: 20 U.S.C. 1070c–3a)

§ 692.52 What definitions apply to the

SLEAP Program?

The following definitions apply to the

SLEAP Program:

(a) The definitions listed in § 692.4.

(b) The definitions of the following

terms in 34 CFR 77.1 (EDGAR):

Elementary school.

Preschool.

Secondary school.

(Authority: 20 U.S.C. 1070c–3a)

§ 692.53 What requirements must a State

satisfy to receive SLEAP Program funds?

To receive SLEAP Program funds for

any fiscal year, a State must—

(a) Participate in the LEAP Program;

(b) Meet the requirements in § 692.60;

and

(c) Have a program that—

(1) Provides assistance only to

students who meet the eligibility

requirements in § 692.54;

(2) Satisfies the requirements in

§§ 692.21(a) and (k); and

(3)(i) Satisfies the requirements in

§§ 692.21(e), (f), (g), and (j), if that

program provides students with

postsecondary education assistance; or

(ii) Provides that no student or parent

may be charged a fee that is payable to

an organization other than the State for

the purpose of collecting data to make

a determination of financial need for

preschool, elementary, or secondary

school students.

(Authority: 20 U.S.C. 1070c–3a)

§ 692.54 What eligibility requirements

must a student satisfy to participate in the

SLEAP Program?

(a) To receive postsecondary financial

assistance under the SLEAP Program, a

student must meet the eligibility

requirements contained in § 692.40.

(b) To receive early intervention,

mentoring, career education or

transition program services under the

SLEAP Program, a preschool,

elementary, or secondary school student

must—

(1) Meet the applicable citizenship

and residency requirements in 34 CFR

668.33; and

(2) Demonstrate financial need as

determined by the State.

(Authority: 20 U.S.C. 1070c–3a)

How Does a State Apply To Participate

in the SLEAP Program?

§ 692.60 What must a State do to receive

an allotment under the SLEAP Program?

To receive an allotment under the

SLEAP Program, a State must—

(a) Submit an application in

accordance with the provisions in

§ 692.20;

(b) Identify the activities in § 692.71

that it plans to carry out;

(c) Provide an assurance that for the

fiscal year prior to the fiscal year for

which the State is requesting Federal

funds, the amount the State expended

from non-Federal sources per student,

or the aggregate amount the State

expended, for all the authorized

activities in § 692.71 will be no less than

the amount the State expended from

non-Federal sources per student, or in

the aggregate, for those activities for the

second fiscal year prior to the fiscal year

for which the State is requesting Federal

funds; and

(d) Ensure that the Federal share will

not exceed one-third of the total funds

expended under the SLEAP Program.

(Authority: 20 U.S.C. 1070c–3a)

Federal Register / Vol. 65, No. 212 / Wednesday, November 1, 2000 / Rules and Regulations 65609

What Is the Amount of Assistance and

How May It Be Used?

§ 692.70 How does the Secretary allot

funds to the States?

For each fiscal year, the Secretary

allots to each eligible State that applies

for SLEAP funds an amount in

accordance with the provisions in

§ 692.10.

(Authority: 20 U.S.C. 1070c–3a)

§ 692.71 What activities may be funded

under the SLEAP Program?

A State may use the funds it receives

under the SLEAP Program to implement

one or more of the following:

(a) Increase the dollar amount of

grants awarded under the LEAP

Program to eligible students who

demonstrate financial need as

determined in § 692.41.

(b) Carry out transition programs from

secondary school to postsecondary

education for eligible students who

demonstrate financial need as

determined by the State.

(c) Carry out a financial aid program

for eligible students who demonstrate

financial need as determined in § 692.41

and who wish to enter careers in

information technology or other fields of

study determined by the State to be

critical to the State’s workforce needs.

(d) Make funds available for

community service work-study

activities for eligible students who

demonstrate financial need as

determined in § 692.41.

(e) Create a postsecondary scholarship

program for eligible students who

demonstrate financial need as

determined in § 692.41 and who wish to

enter teaching.

(f) Create a scholarship program for

eligible students who demonstrate

financial need as determined in § 692.41

and who wish to enter a program of

study leading to a degree in

mathematics, computer science, or

engineering.

(g) Carry out early intervention

programs, mentoring programs, and

career education programs for eligible

students who demonstrate financial

need as determined by the State.

(h) Award merit or academic

scholarships to eligible students who

demonstrate financial need as

determined in § 692.41.

(Authority: 20 U.S.C. 1070c–3a)

How Does a State Administer Its

Community Service Work-Study

Program?

§ 692.80 How does a State administer its

community service work-study program?

When administering its community

service work-study program, a State

must follow the provisions in § 692.30,

other than the provisions of paragraph

(a)(1) of that section.

(Authority: 20 U.S.C. 1070c–3a)

[FR Doc. 00–27740 Filed 10–31–00; 8:45 am]

BILLING CODE 4000–01–U