[Federal Register Volume 80, Number 73 (Thursday, April 16, 2015)]
[Proposed Rules]
[Pages 20968-20987]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2015-05540]



[[Page 20967]]

Vol. 80

Thursday,

No. 73

April 16, 2015

Part IV





Department of Education





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34 CFR Parts 461, 462, 463, et al.





Programs and Activities Authorized by the Adult Education and Family 
Literacy Act (Title II of the Workforce Innovation and Opportunity 
Act), Workforce Innovation and Opportunity Act, Miscellaneous Program 
Changes, and; Proposed Rules

Federal Register / Vol. 80 , No. 73 / Thursday, April 16, 2015 / 
Proposed Rules

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DEPARTMENT OF EDUCATION

34 CFR Parts 461, 462, 463, 472, 477, 489, and 490

RIN 1830-AA22
[Docket ID ED-2015-OCTAE-0003]


Programs and Activities Authorized by the Adult Education and 
Family Literacy Act (Title II of the Workforce Innovation and 
Opportunity Act)

AGENCY: Office of Career, Technical, and Adult Education, Department of 
Education.

ACTION: Notice of proposed rulemaking.

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SUMMARY: The Secretary proposes to establish regulations to implement 
changes to the Adult Education and Family Literacy Act (AEFLA) 
resulting from the enactment of the Workforce Innovation and 
Opportunity Act of 2014 (WIOA or the Act). The proposed regulations 
clarify new provisions in the law. The Secretary also proposes to 
update the regulations that establish procedures for determining the 
suitability of tests used for measuring State performance on 
accountability measures under AEFLA. Finally, we propose to remove 
specific parts of title 34 of the Code of Federal Regulations (CFR) 
that are no longer in effect.

DATES: We must receive your comments on or before June 15, 2015.

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.
    <bullet> 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?''
    <bullet> Postal Mail, Commercial Delivery, or Hand Delivery: If you 
mail or deliver your comments about these proposed regulations, address 
them to Lekesha Campbell, U.S. Department of Education, 400 Maryland 
Avenue SW., Room 11-008, Potomac Center Plaza (PCP), Washington, DC 
20202-7240. Privacy Note: The U.S. Department of Education's 
(Department) 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: Lekesha Campbell, U.S. Department of 
Education, 400 Maryland Avenue SW., Room 11-008, PCP, Washington, DC 
20202-7240.
    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:
    Executive Summary:
    Purpose of This Regulatory Action: On July 22, 2014, President 
Obama signed into law WIOA (P.L. 113-128), which replaces the Workforce 
Investment Act of 1998 (WIA). As under WIA, AEFLA is title II of WIOA 
(title II). The new law supports innovative strategies to keep pace 
with changing economic conditions and seeks to improve coordination 
across the primary Federal programs that support employment services, 
workforce development, adult education, and vocational rehabilitation 
activities. The proposed regulations further the Department's 
implementation of new provisions in the law under AEFLA. Through the 
proposed regulations, we seek to explain the activities authorized 
under AEFLA and assist programs in their implementation efforts at the 
State and local levels.
    In developing this notice of proposed rulemaking (NPRM), we have 
limited our proposed regulations to only those that we believe are 
absolutely necessary to clarify and reiterate key statutory provisions 
of WIOA. In the proposed regulations, we incorporate the relevant 
requirements from the law along with the applicable regulations, to 
provide context and for reader convenience.
    Summary of the Major Provisions of This Regulatory Action: The 
Secretary proposes to:
    1. Remove specific parts of title 34 that are no longer in effect.
    2. Update and revise existing AEFLA regulations regarding the 
suitability of tests for use in the National Reporting System for Adult 
Education (NRS) to reflect new provisions of WIOA. The proposed 
regulations also include procedures that States and local eligible 
providers would be required to follow when using suitable tests for NRS 
reporting. The changes conform to the statutory language in WIOA and 
clarify existing requirements.
    3. Define the purpose of AEFLA and the programs authorized by the 
Act, as well as clarify the related Education Department General 
Administration Regulations (EDGAR) and definitions that apply to the 
program.
    4. Describe the process and requirements for States to award grants 
or contracts to local providers and the activities that may be charged 
to local administrative costs. These regulations would implement new 
requirements established by WIOA, including the requirement that local 
workforce development boards (Local Boards) review applications for 
funds prepared by applicants for AEFLA funding, the requirement that 
entities have ``demonstrated effectiveness'' to be eligible providers, 
and the requirement that local administrative funds be used to promote 
the alignment of a provider's activities with the local workforce 
development plan established under title I of WIOA (title I).
    5. Define what constitutes an adult education and literacy activity 
or program and clarify how funds can be used for activities that are 
newly authorized by WIOA.
    6. Describe how AEFLA funds may be used to support programs for 
corrections education and the education of other institutionalized 
individuals, including new activities authorized by WIOA.
    7. Clarify the use of funds for new and expanded activities under 
the Integrated English Literacy and Civics Education program.
    Costs and Benefits: The benefits and costs of these proposed 
regulations are discussed in more detail in the Regulatory Impact 
Analysis section of this preamble. One benefit of the proposed 
regulations is that they would make necessary updates and conforming 
changes to part 462 to align the regulations with WIOA. The proposed 
changes to part 462 also would benefit test publishers by creating more 
opportunities for them to submit assessments to the Secretary for 
review. This would likely increase the availability of new assessments 
for use in the NRS, a benefit for State eligible agencies and eligible 
local providers. The costs of the amendments to part 462, on the other 
hand, would be negligible.
    One benefit of the proposed regulations in part 463 is the 
promotion of more efficient and consistent implementation of AEFLA in 
States and outlying areas by clarifying a number of statutory 
provisions. The proposed regulations clarify, for example, how an 
English language acquisition program can meet the statutory requirement 
that the program ``leads to attainment of a

[[Page 20969]]

secondary school diploma or its recognized equivalent and transition to 
postsecondary education and training or leads to employment,'' setting 
out a consistent standard that would be used by all eligible State 
agencies. Absent these proposed regulations, each State eligible agency 
would have to determine on its own how a program can meet the statutory 
requirement. The proposed regulations in part 463 would not, however, 
impose additional costs to State eligible agencies, local eligible 
providers of adult education, or to the Federal government.
    Invitation to Comment: We invite you to submit comments regarding 
these proposed regulations. To ensure that your comments have maximum 
effect in developing the final regulations, we urge you to identify 
clearly the specific section or sections of the proposed regulations 
that each of your comments addresses and to arrange your comments in 
the same order as the proposed regulations.
    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 these 
proposed regulations. 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 Department's programs 
and activities.
    During and after the comment period, you may inspect all public 
comments about these proposed regulations by accessing Regulations.gov. 
You may also inspect the comments in person in room 11-008, PCP, 400 
Maryland Avenue SW., Washington, DC, between 8:30 a.m. and 4:00 p.m., 
Washington, DC time, Monday through Friday of each week except Federal 
holidays. To make arrangements to view the comments in person, please 
contact the person listed under FOR FURTHER INFORMATION CONTACT.
    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 these proposed regulations. 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.

Background

    The Department proposes to remove 34 CFR part 461 because these 
regulations are no longer applicable to the Federal adult education 
program. These regulations were promulgated under the National Literacy 
Act (Pub. L. 102-73) in 1992, which has since been superseded. We also 
propose to remove regulations for six discretionary grant programs that 
are no longer authorized by statute: The National Workplace Literacy 
Program (part 472), the State Program Analysis Assistance and Policy 
Studies Program (part 477), the Functional Literacy for State and Local 
Prisoners Program (part 489), and the Life Skills for State and Local 
Prisoners Program (part 490).
    The Department proposes to update and revise existing regulations 
in 34 CFR part 462 concerning the Secretary's authority to approve 
tests suitable for use in measuring State performance on accountability 
measures. We also propose to establish regulations in part 463 of title 
34 of the CFR that would clarify new program activities and 
requirements under WIOA, as well as the WIA-authorized program 
activities and requirements that are continued under WIOA. We intend to 
issue guidance and technical assistance on select title II provisions, 
as appropriate. The Departments of Education and Labor have also 
collaborated on the development of proposed regulations related to 
title I that affect title II programs and activities. These proposed 
regulations, addressing the Unified or Combined State Plan, the 
performance accountability system, and the one-stop delivery system, 
are published elsewhere in this issue of the Federal Register.

Public Participation

    On August 12, 2014, the Office of Career, Technical, and Adult 
Education and the Office of Special Education and Rehabilitative 
Services, which administers the Rehabilitation Act of 1973 that was 
amended by title IV of WIOA, posted a notice on the Department's Web 
site that solicited comments and recommendations from the public on the 
implementation of WIOA. We received 277 comments. The Department also 
held sessions with stakeholders and providers of adult education 
activities and programs to assist in the development of related 
guidance and technical assistance.

Summary of Proposed Changes

    These proposed regulations would--
    <bullet> Remove specific parts of title 34 that are no longer in 
effect;
    <bullet> Revise existing AEFLA regulations that have been in place 
since 2008 related to the Secretary's authority to review and determine 
the suitability of tests available for use in the NRS;
    <bullet> Define the purposes of programs authorized by AEFLA;
    <bullet> Describe the process and requirements for awarding of 
grants and contracts to local providers and the activities that may be 
charged for local administrative costs;
    <bullet> Define and clarify the new and existing adult education 
and literacy activities or programs that may be funded under WIOA;
    <bullet> Describe how AEFLA funds may be used to support programs 
for corrections education and the education of other institutionalized 
individuals; and
    <bullet> Clarify how eligible agencies may use funds for activities 
and requirements under the Integrated English Literacy and Civics 
Education program.

Significant Proposed Regulations

    We discuss substantive issues under the sections of the proposed 
regulations to which they pertain. Generally, we do not address 
proposed regulatory changes that are technical or otherwise minor in 
effect.

34 CFR Part 462

    The proposed regulations in 34 CFR part 462 relate to the 
Secretary's authority to approve tests suitable for use in the NRS. 
These regulations are authorized under section 212 of AEFLA, which 
makes adult education and literacy programs and activities subject to 
the performance accountability requirements of section 116 of WIOA.
    Through the proposed regulations, we would further formalize the 
process for the review and approval of tests for use in the NRS. By 
creating a uniform review and approval process, the regulations would 
facilitate the submission process for test publishers and strengthen 
the integrity of the NRS as a critical tool for measuring State 
performance on accountability measures related to adult education and 
literacy activities under AEFLA, as required under section 116 of WIOA. 
This proposed process would also provide a means by which the Secretary 
would assess the continued validity of tests that are currently 
approved for use in the NRS.

I. General

Section 462.1 What is the authority for this part?

    In Sec.  462.1, and in other sections in part 462 where we cite WIA 
as the

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statutory authority, we propose to revise the authority citation to 
refer to WIOA, unless otherwise specified.

Section 462.2 What regulations apply?

    We propose revising the list of applicable regulations in Sec.  
462.2 to reflect the current Federal regulations. Specifically, we 
propose deleting references to EDGAR parts 74, 80, and 85 because these 
parts have been removed from the CFR. The Department, along with other 
Federal agencies, has recently adopted and amended as its own 
regulations the Office of Management and Budget's (OMB) Uniform 
Administrative Requirements, Cost Principles, and Audit Requirements 
for Federal Awards (Uniform Guidance). To that end, we propose adding 
references to 2 CFR part 180 and 2 CFR part 200.

Section 462.3 What definitions apply?

    We propose revising several definitions in Sec.  462.3 to align the 
terms in Sec.  462.3 with the language in WIOA. For example, to conform 
with section 203 of AEFLA, we propose replacing the term ``English as a 
second language (ESL)'' with the term ``English language acquisition 
(ELA).'' We also propose to remove the reference to the physical 
location of a copy of the NRS Implementation Guidelines as we seek to 
reduce costs to the government and provide easier and immediate public 
access online.

Section 462.4 What are the transition rules for using tests to measure 
educational gain for the National Reporting System for Adult Education 
(NRS)?

    We propose to revise Sec.  462.4 to reflect the availability of 
tests that were reviewed and approved after the existing regulation was 
published on January 14, 2008. This proposed change would reflect the 
current process the Department follows, in which providers are notified 
of a date by which they may no longer use the test determined suitable 
for use.

II. What process does the Secretary use to review the suitability of 
tests for use in the NRS?

Section 462.10 How does the Secretary review tests?

    Proposed Sec.  462.10 would establish the new dates by which tests 
must be submitted for review each year. Currently, tests must be 
submitted by October 1 of each year. The two additional submission 
dates of April 1, 2017 and April 1, 2018 in the proposed regulations 
would provide more opportunities for the Secretary to review and 
approve assessments and likely increase the availability of new 
assessments to providers.

Section 462.11 What must an application contain?

    As proposed, Sec.  462.11(a)(4) would increase the number of 
application copies that a publisher must submit from three to four. We 
have increased the number of panel experts who review each application 
from two to three. Increasing the number of reviewers has provided the 
Secretary with an additional expert opinion in the event that two 
reviewers disagree. The proposed changes in the number of required 
application copies would facilitate this review procedure. One copy of 
the application would be retained by the Department, and three copies 
would be submitted to the reviewers.
    Proposed Sec.  462.11(j)(4) sets forth examples of situations that 
would require a test publisher to provide analysis and explanations of 
the significant revisions made to tests approved prior to the effective 
date of the proposed regulations. These examples illustrate the kinds 
of revisions that could affect the psychometric properties of a test 
and, therefore, would require additional review. The list of examples 
is illustrative and not intended to be exhaustive. As we propose to 
remove Sec.  462.44 and revise and publish the descriptors for the NRS 
educational functioning levels in a document titled Implementation 
Guidelines: Measures and Methods for the National Reporting System for 
Adult Education (OMB Control Number: 1830-0027), we propose replacing 
the current references to Sec.  462.44 with references to the 
Guidelines.

Section 462.12 What procedures does the Secretary use to review the 
suitability of tests?

    To conform to WIOA, we have replaced the term ``English as a second 
language (ESL)'' with ``English language acquisition (ELA)'' in 
proposed Sec.  462.12.
    Additionally, under proposed Sec.  462.12(c)(2) the Secretary would 
publish a list of the test forms, along with the names of tests, that 
have been approved as suitable for use in the NRS. This revision would 
make the regulation consistent with current practice. As a test can 
have several forms and new forms may be developed at any time, since 
2010, the Secretary has identified specific test forms in addition to 
test names. Only those test forms reviewed and approved by the 
Secretary are suitable for use in the NRS.
    Proposed Sec.  462.12(d)(2) would allow a test publisher to 
resubmit, during the next annual review cycle, an application that was 
previously not approved as suitable for use in the NRS. This would 
replace the current rule that allows a test publisher to request 
reconsideration within 30 days following notification from the 
Secretary that a test was not approved as suitable. We believe the 
current reconsideration process has not yielded the substantive 
benefits that might otherwise justify the costs and delays that 
accompany a reconsideration process. Permitting resubmission at the 
next review cycle would give test publishers time to address any 
deficiencies in their application and would lessen the burden on the 
Department by utilizing the existing annual review process, while still 
affording publishers a reasonably timely opportunity for 
reconsideration.
    Proposed Sec.  462.12(e)(ii) provides additional examples of the 
circumstances under which a test's approval as suitable for use may be 
revoked. These circumstances could affect the psychometric properties 
of the test, and would therefore require additional review and possible 
revocation. The proposed list of examples is illustrative and not 
intended to be exhaustive.
    In addition, we have revised this section to reflect that the name 
of the Office of Vocational and Adult Education was officially changed 
to the Office of Career, Technical, and Adult Education.

Section 462.13 What criteria and requirements does the Secretary use 
for determining the suitability of tests?

    Consistent with the statutory changes, as in proposed Sec.  462.12 
we have replaced the term ESL with ELA. We have also updated the 
reference to the Standards for Educational and Psychological Testing to 
reflect the most current edition of these standards.

Section 462.14 How often and under what circumstances must a test be 
reviewed by the Secretary?

    Proposed Sec.  462.14(b) provides additional examples of 
circumstances under which a publisher must resubmit a test for review 
by the Secretary. These examples illustrate circumstances that could 
affect the psychometric properties of the test. This list of examples 
is illustrative and not intended to be exhaustive.

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III. What requirements must States and local eligible providers follow 
when measuring educational gain?

Section 462.40 Must a State have an assessment policy?

    In Sec.  462.40, we propose replacing the term ESL with ELA.
    Proposed Sec.  462.40(c)(3) adds one additional element to the 
information a State must include in its assessment policy. Under the 
current regulations, students must receive an initial assessment, or a 
pre-test, of academic skills using assessments that the Secretary has 
determined to be suitable for use in the NRS. The results of the pre-
test must be used to place students into an educational functioning 
level. A State must further require that each student who meets a 
threshold of instruction defined in its assessment policy will receive 
a matched post-test. We propose to require a State to specify in its 
State assessment policy a target for the percentage of all pre-tested 
students who both meet that threshold of instruction and take a matched 
post-test. The post-test score is used to determine whether the student 
has made academic progress. If a local provider does not post-test a 
student, the provider must report that the student has not made an 
educational gain. The purpose of requiring States to establish this 
standard is to promote the implementation of policies and practices by 
local providers that maximize the percentage of students who have a 
matched post-test completed in order to document academic progress, and 
to encourage continuous improvement over time. States are currently 
required to specify this standard by the information collection, 
Implementation Guidelines: Measures and Methods for the National 
Reporting System for Adult Education (OMB Control Number: 1830-0027). 
We are proposing to make this a regulatory requirement.

Section 462.41 How must tests be administered in order to accurately 
measure educational gain for the purpose of the performance indicator 
in section 116(b)(2)(A)(i)(V) of the Act concerning the achievement of 
measurable skill gains?

    We are proposing to revise the title of this section to conform to 
the proposed joint rule to implement the measurable skill gain 
indicator by documenting achievement of academic, technical, 
occupational, or other forms of progress. Test administration will be 
used to document educational or academic progress under this indicator 
for purposes of AEFLA.

Section 462.43 How is educational gain measured for the purpose of the 
performance indicator in section 116(b)(2)(A)(i)(V) of the Act 
concerning the achievement of measurable skill gains?

    Proposed Sec.  462.43(a) sets forth the statutory language in 
section 203(1)(A) of title II regarding how educational gain is 
measured. We propose adding Sec.  462.43(c) to reflect the fact that 
several States offer adult high school programs, sanctioned by State 
law or regulation, that lead to a secondary school diploma or its 
equivalent. Proposed Sec.  462.43(c) would allow these States to 
measure and report educational gain through the awarding of credits or 
Carnegie units. The Carnegie unit is a credit system that bases the 
awarding of academic credit on how much time students spend in direct 
contact with a classroom teacher. As with Sec.  462.41, we are 
proposing to revise the title of this section to conform to the 
proposed joint rule to implement the measurable skill gain indicator by 
documenting achievement of academic, technical, occupational, or other 
forms of progress.

Section 462.44 Which educational functioning levels must States and 
local eligible providers use to measure and report educational gain in 
the NRS?

    We propose to remove and reserve Sec.  462.44. This section 
currently describes the descriptors for the educational functioning 
levels that States and local providers must use to measure and report 
educational gain in the NRS. Concurrent with the development of 
regulations and supplementary guidance on the performance indicators, 
we are revising and updating the descriptors for the NRS educational 
functioning levels. The revised descriptors were published for public 
comment in OMB information collection 1830-0027 on January 13, 2015. 
After reviewing the public comments, we anticipate publishing the final 
descriptors as part of that information collection. Test publishers 
will then have an opportunity to revise or develop new assessments that 
are consistent with the revised descriptors and submit them for review 
to the Secretary. We anticipate that this process of test revision and 
development may take several years. The revised descriptors will not be 
implemented until the Secretary has determined that there is at least 
one assessment that is both aligned with the revised descriptors and 
that is suitable for use in the NRS. Until that time, we will continue 
to use the existing descriptors. Therefore, we propose to remove the 
descriptors from the regulations; and, in order to facilitate regular 
revisions and updates necessary to keep the descriptors current, we 
propose to include them in an information collection. Information 
collections are approved by OMB for no more than three years, giving 
the Department and the public periodic opportunities to review the 
descriptors and recommend revisions that may be appropriate.

34 CFR Part 463

I. Adult Education--General Provisions

    WIOA reauthorizes, retains, and enhances various AEFLA provisions 
that were previously authorized by WIA. Subpart A of proposed part 463 
would clarify the purpose, authorized programs, definitions, and 
regulations that apply to adult education programs under WIOA.

Section 463.1 What is the purpose of the Adult Education and Family 
Literacy Act?

    WIOA retains and expands the purposes of AEFLA. Under WIA, AEFLA 
aimed to help adults improve their educational and employment outcomes, 
become self-sufficient, and support the educational development of 
their children, but under WIOA, AEFLA's purposes have been expanded to 
include assisting adults to transition to postsecondary education and 
training, including through career pathway programs. Further, WIOA 
formalizes the role of adult education in assisting English language 
learners to acquire the skills needed to succeed in the 21st-century 
economy. The proposed regulations would clarify the expanded role of 
adult education programs at the Federal, State, and local levels.

Section 463.2 What regulations apply to the Adult Education and Family 
Literacy Act programs?

    Proposed Sec.  463.2 lists the regulations that apply to adult 
education programs to ensure that recipients of grant funds are aware 
of where to find the relevant requirements for effectively 
administering a grant or contract awarded with AEFLA funds.

Section 463.3 What definitions apply to the Adult Education and Family 
Literacy Act programs?

    Proposed Sec.  463.3 identifies 31 terms used in WIOA that pertain 
to the adult education program. In some instances, the terms, which are 
defined in titles I and II, apply across all core programs authorized 
under WIOA. In other instances, the terms are specific to title

[[Page 20972]]

II. Proposed Sec.  463.3 is intended to assist users by centralizing 
relevant definitions into one section. Proposed Sec.  463.3 also 
identifies terms found in EDGAR that apply to State grant programs and 
that are relevant to AEFLA. Seven additional terms used in WIOA are not 
explicitly defined. We have listed and defined these terms under 
``other definitions'' to clarify their meaning for purposes of the 
AEFLA program. For example, the proposed definition of ``concurrent 
enrollment'' or ``co-enrollment'' would clarify its meaning specific to 
enrollment in two or more of the four core programs in WIOA to provide 
consistency with how it is used throughout the statute. This 
definition, developed for the purposes of WIOA, differs from general 
use of the term which implies enrollment in two or more educational 
programs. ``Digital literacy,'' for the purposes of title II, would 
have the same meaning as that term is given in section 202 of the 
Museum and Library Services Act. This definition is also consistent 
with how digital literacy is defined in section 101(d) of the Act. 
Finally, the proposed definition of ``re-entry initiatives and post-
release services'' is consistent with the definition that is commonly 
used in the correctional education field.

Section 463.20 What is the process that an eligible agency must follow 
in awarding grants or contracts to eligible providers?

    Proposed Sec.  463.20 describes the process that an eligible agency 
must follow when awarding grants or contracts to local providers. WIOA 
retains the WIA requirement that an eligible agency award multiyear 
grants or contracts on a competitive basis to eligible providers for 
the purpose of developing, implementing, and improving adult education 
within the State or outlying area. Proposed Sec.  463.20 restates this 
statutory requirement.
    WIOA also retains the requirement under WIA that an eligible agency 
ensure that all eligible providers have direct and equitable access to 
apply for and compete for grants and contracts under AEFLA. Title II of 
WIOA further requires an eligible agency to use the same grant or 
contract announcement and application processes for all eligible 
providers in the State or outlying area. Proposed Sec.  463.20 
reiterates this statutory requirement.
    Under WIA, when awarding grants under AEFLA, State eligible 
agencies were required to consider 12 factors. WIOA revises these 12 
factors, and adds one additional factor relating to the alignment 
between proposed activities and services and the strategy and goals of 
the local plan under section 108, and the activities and services of 
the one-stop partners. Eligible agencies must also consider under WIOA 
the coordination of the local education program with available 
education, training, and other support services in the community. 
Proposed Sec.  463.20 restates these statutory requirements.

Section 463.21 What processes must be in place to determine the extent 
to which a local application for grants or contracts to provide adult 
education and literacy services is aligned with a local plan developed 
under section 108 of WIOA?

    WIOA promotes coordination between the Local Board and adult 
education providers by requiring in section 107(d)(11) that the Local 
Board review a provider's application for AEFLA funds before the 
application is submitted to the eligible agency. The purpose of the 
Local Board review is to determine whether the application is 
consistent with the local workforce plan, and to make recommendations 
to the eligible agency to promote alignment with the local workforce 
plan.
    Proposed Sec.  463.21 requires an eligible agency to establish 
procedures for Local Board review in its grant or contract application 
process. This section would also establish the type of documentation 
that must accompany the application. For example, an applicant would be 
required to document that the application was submitted to the Local 
Board and was reviewed within the specified timeframe and that the 
Local Board made recommendations to promote alignment. The proposed 
regulations also require the eligible agency to consider the results of 
the Local Board review in determining the extent to which the 
application addresses the requirements of the local plan developed in 
accordance with section 108 of WIOA. The purpose of the proposed 
regulation is to establish uniform procedures within the State and 
outlying area for a Local Board to review an application and to ensure 
that the eligible agency considers the review in its award of grants 
and contracts for adult education and literacy activities.

Section 463.22 What must be included in the eligible provider's 
application for a grant or contract?

    Proposed Sec.  463.22 identifies what an eligible provider must 
include in its application for a grant or contract under AEFLA. WIOA 
retains two of the local application requirements from WIA, and adds 
five new requirements. As under WIA, an eligible provider must provide 
the information and assurances required by the eligible agency. Under 
the new application requirements, the eligible provider must also 
describe how it will: Provide services in alignment with local 
workforce plans, including promotion of concurrent enrollment with 
title I services; fulfill one-stop partner responsibilities; meet 
performance levels based on the newly established primary indicators of 
performance and collect data to report on performance indicators; and 
provide services to meet the needs of eligible individuals. Applicants 
must also provide other information that addresses the 13 
considerations outlined in Sec.  463.20.

Section 463.23 Who is eligible to apply for a grant or contract to 
provide adult education and literacy activities?

    Proposed Sec.  463.23 lists the organizations that are eligible to 
apply for a grant or contract to provide adult education and literacy 
activities under WIOA. WIOA lists 10 organization types that may be 
eligible providers, two of which are a consortium or coalition of 
organization types and a partnership between an employer and eligible 
entities. WIOA further permits other organization types, even if not 
specifically listed, to apply as eligible providers if they meet the 
demonstrated effectiveness requirement.
    Finally, WIOA further requires an ``eligible provider'' to have 
``demonstrated effectiveness'' in providing adult education and 
literacy services, a requirement that applied only to community-based 
organizations and volunteer literacy organizations under WIA.

Section 463.24 How can an eligible provider establish that it has 
demonstrated effectiveness?

    To ensure that programs are of high quality, proposed Sec.  463.24 
would further clarify how an organization previously funded under 
AEFLA, as well as an organization not previously funded under AEFLA, 
could demonstrate effectiveness by providing performance data in its 
application. This clarification would help States conduct fair and 
equitable grant competitions for all eligible providers. We are 
particularly interested in receiving public comment on the proposed 
means of demonstrating effectiveness.

Section 463.25 What are the requirements related to local 
administrative costs?

    Proposed Sec.  463.25 restates the statutory language in section 
233(b) of WIOA that allows eligible providers to

[[Page 20973]]

request to negotiate with the eligible agency the level of funds for 
non-instructional purposes in the event the statutory cap of 5 percent 
for local administration is too restrictive.

Section 463.26 What activities are considered local administrative 
costs?

    Proposed Sec.  463.26 describes the activities eligible providers 
may charge to local administrative costs under WIOA. Under WIA, local 
administrative costs are identified as funds used for planning, 
administration, personnel development, and interagency coordination. 
WIOA retains planning, administration, and personnel development as 
local administrative costs, and replaces interagency coordination with 
specific activities to promote alignment with local plans, including 
concurrent enrollment with title I services and the one-stop partner 
requirements outlined in section 121(b)(1)(A) of WIOA. Proposed Sec.  
463.26 would clarify that local administrative costs may include costs 
associated with fulfilling required one-stop responsibilities, 
including contributions to the infrastructure costs of the one-stop 
delivery system.

II. What are adult education and literacy activities?

    The proposed regulations would further define and clarify the new 
and revised required activities authorized under WIOA to ensure that 
eligible providers understand how funds may be spent for adult 
education and literacy activities.

Section 463.30 What are adult education and literacy programs, 
activities, and services?

    WIOA retains, revises, and supplements the adult education and 
literacy activities under WIA. Specifically, WIOA retains adult 
education, literacy, workplace adult education and literacy, and family 
literacy as adult education and literacy activities. WIOA changes the 
name of the English literacy program under WIA to the ``English 
language acquisition program.'' Section 203(2) of WIOA further adds 
three new activities to the definition of ``adult education and 
literacy activities'': Integrated English literacy and civics 
education, workforce preparation activities, and integrated education 
and training. Proposed Sec.  463.30 lists these eight activities and 
generally restates the statutory language.

Section 463.31 What is an English language acquisition program?

    Under section 203(6) of WIOA, an English language acquisition 
program, called an ``English literacy program'' in WIA, is designed to 
help English language learners achieve competence in reading, writing, 
speaking, and comprehension of the English language. Under WIOA, the 
program of instruction must also lead to attainment of a secondary 
school diploma or its recognized equivalent and transition to 
postsecondary education or training or lead to employment. Proposed 
Sec.  463.31 would restate the statutory requirements for an English 
language acquisition program under WIOA.

Section 463.32 How does a program that is intended to be an English 
language acquisition program meet the requirement that the program 
leads to attainment of a secondary school diploma or its recognized 
equivalent and transition to postsecondary education and training or 
leads to employment?

    Proposed Sec.  463.32 would establish how an English language 
acquisition program must meet the new requirement that it lead to high 
school completion and transition to postsecondary opportunities or lead 
to employment. Section 463.32 would establish that a program satisfies 
the requirement by using rigorous and challenging adult education 
standards that meet the requirements in the Unified State Plan, 
providing supportive services that assist an individual to attain a 
secondary school diploma or its recognized equivalent and transition to 
postsecondary education or training, or designing the program to be a 
part of a career pathway. These programs or services have been 
identified as having a positive impact on the successful transition of 
adults to postsecondary education and training and employment. We 
invite public input on these proposals and specifically request 
suggestions regarding other methods that may be used to meet this 
requirement.

Section 463.33 What are integrated English literacy and civics 
education services?

    WIOA includes among the authorized adult education and literacy 
activities a set of services that were previously authorized through 
annual appropriations language (i.e., not WIA). These services are 
integrated English literacy and civics education services, which WIOA 
defines as educational services that include both literacy and English 
language instruction integrated with civics education. Under WIOA, 
these services may be provided to adults who are English language 
learners, including those who are professionals with degrees or 
credentials in their native countries, and may include workforce 
training. Proposed Sec.  463.33 restates the statutory language of WIOA 
pertaining to integrated English literacy and civics education 
services.

Section 463.34 What are workforce preparation activities?

    Proposed Sec.  463.34 restates statutory language in WIOA that 
establishes workforce preparation activities as activities, programs, 
or services that are designed to help an individual acquire a 
combination of basic academic, critical thinking, digital literacy, and 
self-management skills. While adult education and literacy instruction 
has traditionally supported the development of basic academic and 
critical thinking skills, workforce preparation will also support the 
development of self-management skills and digital literacy. The statute 
further states that workforce preparation includes developing 
competencies in using resources and information, working with others, 
understanding systems, and obtaining skills necessary to successfully 
transition to and complete postsecondary education, training, and 
employment. These competencies are commonly incorporated into 
definitions of employability skills. Proposed Sec.  463.34 adds 
employability skills to the list of competencies described in the 
statute to further clarify the meaning of ``workforce preparation.''

Section 463.35 What is integrated education and training?

    Proposed Sec.  463.35 restates the statutory definition of 
integrated education and training activity.

Section 463.36 What are the required components of an integrated 
education and training program funded under title II?

    Proposed Sec.  463.36 describes the three components that would be 
required in an integrated education and training program. These 
components are adult education and literacy activities, workforce 
preparation activities, and workforce training. Two of the components, 
adult education and literacy activities and workforce preparation 
activities, are discussed in Sec.  463.30 and Sec.  463.34. In proposed 
Sec.  463.36, we would further clarify the workforce training component 
by referencing section 134(c)(3)(D) of WIOA, which identifies the 
activities that constitute training within the employment and training 
services authorized by title IB.

[[Page 20974]]

Section 463.37 How does a program providing integrated education and 
training under title II meet the requirement that the three required 
components be ``integrated''?

    Proposed Sec.  463.37 would establish how the three components of 
integrated education and training must be integrated. The proposed 
regulation would require that an integrated education and training 
program balance the proportion of instruction across the three 
components, deliver the components simultaneously, and use 
occupationally relevant instructional materials. Proposed Sec.  463.37 
would also require a program to have a single set of learning 
objectives that identifies specific adult education content, workforce 
preparation activities, and workforce training competencies. These 
proposed requirements are intended to facilitate the design of high-
quality integrated education and training programs that focus on 
improving the academic skills of low-skilled adults while advancing 
their occupational competencies. We seek public input on the proposed 
requirements and other suggested requirements that may support the 
provision of integrated education and training services to eligible 
adults at all skill levels.

Section 463.38 How does a program providing integrated education and 
training under title II meet the requirement that an integrated 
education and training program be ``for the purpose of educational and 
career advancement''?

    Under proposed Sec.  463.38, to meet the WIOA requirement that the 
integrated education and training program be for the purpose of 
educational and career advancement, the educational component of a 
program would be required to align with the State's content standards 
for adult education in the State's Unified or Combined State Plan or 
the program would be required to be part of a career pathway as that 
term is defined in section 3 of WIOA (29 U.S.C. 3102(7)). The use of 
rigorous and challenging academic standards and career pathways that 
contextualize learning are recognized strategies to promote readiness 
for postsecondary education and work.

III. What are programs for corrections education and the education of 
other institutionalized individuals?

Section 463.60 What are programs for corrections education and the 
education of other institutionalized individuals?

    In proposed Sec.  463.60, we describe programs for corrections 
education and the education of other institutionalized individuals. 
WIOA expands the educational programs and activities for which funds 
may be used and changes the WIA terminology. WIOA adds to the list of 
academic programs five new academic programs and uses the new 
definition of ``adult education and literacy activities'' described in 
Sec.  463.30. ``Integrated education and training'' and ``concurrent 
enrollment'' are defined in Sec.  463.3 and Sec.  463.35, and ``career 
pathways'' is defined in WIOA section 3. Definitions for ``peer 
tutoring'' and ``re-entry initiatives and other post-release services'' 
are in proposed Sec.  463.3.

Section 463.61 How does the eligible agency award funds to eligible 
providers under programs for corrections education and the education of 
other institutionalized individuals?

    WIOA emphasizes the importance of educational and career 
advancement for incarcerated individuals by increasing from 10 percent 
to 20 percent the cap on funds that States may use for programs for 
corrections education and the education of other institutionalized 
individuals. Proposed Sec.  463.61 reiterates this new statutory 
provision and clarifies that any awards made by the eligible agency for 
programs for corrections education and education programs for other 
institutionalized individuals must be made in accordance with 
applicable regulations in subpart C.

Section 463.62 What is the priority for programs that receive funding 
through programs for corrections education and the education of other 
institutionalized individuals?

    Proposed Sec.  463.62 restates the statutory provision in WIOA that 
gives priority to serving individuals who are likely to leave the 
corrections programs within five years of participation in the program.

Section 463.63 How may funds under programs for corrections education 
and the education of other institutionalized individuals be used to 
support transition to re-entry initiatives and other post-release 
services with the goal of reducing recidivism?

    Proposed Sec.  463.63 establishes how these funds may support 
transition to re-entry initiatives and other post-release services 
under section 225(b)(8) of WIOA. This section would clarify that re-
entry initiatives and other post-release services must support the 
educational needs of the individual. We propose to make this 
clarification because section 225(b) of the Act specifies that funds 
may only be used ``for the costs of educational programs.''

IV. What is the Integrated English Literacy and Civics Education 
program?

    In addition to the new integrated English Literacy and Civics 
Education services discussed in Sec.  463.34, WIOA creates a new 
integrated English Literacy and Civics Education program that codifies 
and replaces the English Literacy and Civics Education program 
previously authorized through annual appropriations. The inclusion of 
the program in WIOA makes it an authorized program and eliminates the 
need for it to be authorized and separately funded annually through the 
appropriations process. The new program retains the focus on English 
language proficiency and civics education instruction, but there are 
new requirements to support stronger ties to employment and the 
workforce system.

Section 463.70 What is the Integrated English Literacy and Civics 
Education program?

    Proposed Sec.  463.70 describes the statutory requirements related 
to participants for whom funds are intended and the sets of services 
that are required in the program. This section would also clarify that 
the educational services must meet the requirements established in 
Sec.  463.33 pertaining to integrated English literacy and civics 
education services.

Section 463.71 How does the Secretary make an award under the 
integrated English Literacy and Civics Education program?

    Section 463.71 restates the statutory requirements for how the 
Secretary makes awards under the Integrated English Literacy and Civics 
Education program. It includes the statutory formula for how funds will 
be allocated to eligible agencies.

Section 463.72 How does the eligible agency award funds to eligible 
providers for the Integrated English Literacy and Civics Education 
program?

    Proposed Sec.  463.72 describes the statutory requirements to be 
used by eligible agencies in awarding funds, including a requirement 
that States must follow the provisions governing the award of funds 
established in subpart C.

[[Page 20975]]

Section 463.73 What are the requirements for eligible providers that 
receive funding through the integrated English Literacy and Civics 
Education program?

    Proposed Sec.  463.73 reiterates statutory language regarding 
Integrated English Literacy and Civics Education program services and 
design, including requirements for the program to facilitate job 
placement, economic self-sufficiency, and integration with the 
workforce development system.

Section 463.74 How does an eligible provider that receives funds 
through the Integrated English Literacy and Civics Education program 
meet the requirement to provide services in combination with integrated 
education and training?

    Proposed Sec.  463.74 specifies two options an eligible provider 
may use to provide programs combined with integrated education and 
training in order to meet the requirement for the Integrated English 
Literacy and Civics Education program. The two options correspond with 
the requirements for integrated English Literacy and Civics Education 
services under section 231 of the Act and Integrated English Literacy 
and Civics Education programs under section 243 of the Act.

Section 463.75 Who is eligible to receive education services through 
the Integrated English Literacy and Civics Education program?

    Proposed Sec.  463.75 describes the statutory requirements for 
eligibility to receive services under the program.

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 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 a significant regulatory action 
subject to review by OMB under section 3(f) of Executive Order 12866.
    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 upon 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 proposed regulations only on a reasoned 
determination that their benefits would justify their costs. In 
choosing among alternative regulatory approaches, we selected those 
approaches that maximize net benefits. Based on the analysis that 
follows, the Department believes that these proposed regulations are 
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 associated 
with this regulatory action are those resulting from statutory 
requirements and those we have determined as necessary for 
administering the Department's programs and activities.

Potential Costs and Benefits

    Under Executive Order 12866, we have assessed the potential costs 
and benefits of this regulatory action and have determined that these 
proposed regulations would not impose additional costs to State 
eligible agencies under title II, local eligible providers of adult 
education, or the Federal government. We make this determination based 
upon analysis of the particular requirements proposed in parts 462 and 
463.
    The proposed regulations in part 462 primarily represent conforming 
changes and updates to current regulations in order to transition 
smoothly from WIA to WIOA. For example, we propose updating the 
language in the regulations in part 462 for consistency with language 
in the new law in which the term English as a second language (ESL) has 
been replaced with the term English language acquisition (ELA). A 
second example of proposed changes in part 462 is one in which States 
would be provided more flexibility in reporting outcomes for adult 
learners. Proposed Sec.  462.43(c) would recognize the fact that 
several States offer adult high school programs, sanctioned by State 
law or regulation, that lead to a secondary school diploma or its 
equivalent. This new rule would allow these States to measure and 
report educational gain through the awarding of credits or Carnegie 
units, but would not require States to implement changes at an 
additional cost. Thus, from a cost perspective, the proposed 
regulations in part 462 would not impose new substantive requirements 
on State eligible agencies or local eligible providers of adult 
education. Additionally, the benefits of clarifying the conforming 
changes from WIA to WIOA and providing States additional

[[Page 20976]]

flexibility justify the promulgation of the proposed regulations in 
part 462.
    The proposed regulations in part 462 would also update and revise 
existing AEFLA regulations established under WIA that determine the 
suitability of tests for use in the NRS to reflect new WIOA provisions. 
We expect that the proposed regulations would result in a more uniform 
test review and approval process. For example, proposed Sec.  462.10 
would establish new dates by which tests must be submitted for review 
each year. The revised submission dates would provide more 
opportunities for publishers to submit assessments to the Secretary for 
review and would likely increase the availability of new assessments to 
providers. As proposed, Sec.  462.11(a)(4) would increase the number of 
application copies that a publisher must submit to the Secretary from 
three to four. The additional cost to test publishers of providing 
another copy of an application is negligible. Accordingly, we conclude 
that the proposed regulations in part 462 would provide test publishers 
with greater flexibility in the overall submission process and, as 
such, anticipate that the benefits of this additional flexibility 
outweigh any potential minimal costs for test publishers. Moreover, we 
believe that the benefits of this proposed change outweigh the 
potential costs as it would strengthen the integrity of the NRS as a 
critical tool for measuring State performance on accountability 
measures while reducing costs to the Federal Government.
    The proposed regulations in part 463 would largely clarify 
administrative and programmatic changes made by WIOA to the provisions 
regarding general adult education (e.g., applicable definitions, 
relevant programs, applicable regulations), how States make awards to 
local eligible providers, new adult education and literacy activities, 
new requirements for programs for corrections education and the 
education of other institutionalized individuals, and a new English 
literacy and civics education program. While WIOA enacts substantive 
programmatic changes in these areas, WIOA also provides States and 
outlying areas funding and flexibility to address these challenges.
    The proposed regulations in subpart C of part 463 would describe 
the process and requirements for States and outlying areas to award 
grants or contracts to eligible local providers as well as the 
activities allowed for local administrative costs. New application 
requirements would include those aimed at alignment with local 
workforce plans and promotion of concurrent enrollment with title I 
services, fulfillment of one-stop partner responsibilities, performance 
against the newly established primary indicators of performance, 
improving services to meet the needs of eligible individuals, and other 
information that addresses the 13 considerations outlined in proposed 
Sec.  463.20. The changes and new requirements in subpart C pose no 
costs to eligible State agencies, eligible local providers, or the 
Federal Government that are additional to the costs imposed by 
statutory requirements.
    Proposed Sec.  463.21 would require an eligible agency to establish 
procedures for Local Board review in its grant or contract application 
process. The regulation would further establish the type of 
documentation that must accompany the application. For example, an 
applicant would be required to document that the application was 
submitted to the board and was reviewed within the specified timeframe 
and that the Local Board made recommendations to promote alignment. 
While this is a new requirement under WIOA, we conclude that it does 
not impose significant additional costs to eligible State agencies, 
eligible local providers, or the Federal Government as it minimally 
extends requirements already in place to compete for AEFLA funds.
    The proposed regulations in subparts D, F, and G would generally 
restate statutory definitions of adult education and literacy 
activities and clarify new allowable uses of funds. As such, we 
conclude that these proposed new regulations would add no additional 
costs and would provide the added benefit of clarifying the flexibility 
that eligible State agencies and local eligible providers have in using 
funds provided under the Act for adult education and literacy 
activities as set forth in WIOA. Thus, we have determined that the 
proposed regulations in part 463 would not impose additional costs to 
State eligible agencies under title II of WIOA, local eligible 
providers of adult education, or the Federal government.
    Elsewhere in this section under Paperwork Reduction Act of 1995, we 
identify and explain burdens specifically associated with information 
collection requirements.

Clarity of the Regulations

    Executive Order 12866 and the Presidential memorandum ``Plain 
Language in Government Writing'' require each agency to write 
regulations that are easy to understand.
    The Secretary invites comments on how to make these proposed 
regulations easier to understand, including answers to questions such 
as the following:
    <bullet> Are the requirements in the proposed regulations clearly 
stated?
    <bullet> Do the proposed regulations contain technical terms or 
other wording that interferes with their clarity?
    <bullet> Does the format of the proposed regulations (grouping and 
order of sections, use of headings, paragraphing, etc.) aid or reduce 
their clarity?
    <bullet> Would the proposed regulations be easier to understand if 
we divided them into more (but shorter) sections? (A ``section'' is 
preceded by the symbol ``Sec.  '' and a numbered heading; for example, 
Sec.  462.11 What must an application contain?)
    <bullet> Could the description of the proposed regulations in the 
SUPPLEMENTARY INFORMATION section of this preamble be more helpful in 
making the proposed regulations easier to understand? If so, how?
    <bullet> What else could we do to make the proposed regulations 
easier to understand?
    To send any comments that concern how the Department could make 
these proposed regulations easier to understand, see the instructions 
in the ADDRESSES section.

Regulatory Flexibility Act Certification

    The Secretary certifies that these proposed regulations would not 
have a significant economic impact on a substantial number of small 
entities. The U.S. Small Business Administration Size Standards define 
institutions as ``small entities'' if they are for-profit or nonprofit 
institutions with total annual revenue below $5,000,000 or if they are 
institutions controlled by governmental entities with populations below 
50,000. The proposed regulations in part 462 would affect test 
publishers that meet this definition. However, the part 462 regulations 
would not have a significant economic impact on these entities. Both 
large and small entities that publish assessments would benefit from 
proposed Sec.  462.10 because it increases the number of opportunities 
that they may submit assessments to the Secretary for review and 
approval, potentially enabling them to market and sell their 
assessments to eligible local providers earlier than they could under 
the current regulations. The only new cost that would be imposed on 
assessment publishers by the proposed part 462 regulations is the 
nominal cost of providing one additional copy of an application to the 
Secretary (Sec.  462.11(a)(4)).
    The regulations in part 463 would affect eligible local providers 
of adult education that are small, including small institutions of 
higher education, small local educational agencies, small

[[Page 20977]]

community-based organizations or faith-based organizations, small 
volunteer literacy organizations, and other small entities that WIOA 
makes eligible to compete for adult education and literacy funds. The 
proposed regulations would benefit these small entities, as well as 
larger entities that are eligible local providers, by clarifying key 
statutory requirements. For example, proposed Sec.  463.24 would 
explain how a provider can establish that it meets that the statutory 
requirement that a provider have ``demonstrated effectiveness'' in 
order to be eligible to compete for funds. Similarly, proposed Sec.  
463.38 would explain how an eligible provider that administers an 
integrated education and training program must meet the statutory 
requirement that the program be ``for the purpose of educational and 
career advancement.'' By reducing uncertainty and ambiguity about the 
adult education program's requirements, these clarifications would 
benefit all eligible providers, both small and large.

Paperwork Reduction Act of 1995

    As part of its continuing effort to reduce paperwork and respondent 
burden, the Department provides the general public and Federal agencies 
with an opportunity to comment on proposed and continuing collections 
of information in accordance with the Paperwork Reduction Act of 1995 
(PRA) (44 U.S.C. 3506(c)(2)(A)). This helps ensure that: The public 
understands the Department's collection instructions, respondents can 
provide the requested data in the desired format, reporting burden 
(time and financial resources) is minimized, collection instruments are 
clearly understood, and the Department can properly assess the impact 
of collection requirements on respondents.
    Part 462 contains information collection requirements. Under the 
PRA, the Department has submitted a copy of the sections of part 462 
that contain information collection requirements to OMB for its review.
    A Federal agency may not conduct or sponsor a collection of 
information unless OMB approves the collection under the PRA and the 
corresponding information collection instrument displays a currently 
valid OMB control number. Notwithstanding any other provision of law, 
no person is required to comply with, or is subject to penalty for 
failure to comply with, a collection of information if the collection 
instrument does not display a currently valid OMB control number.
    In the final regulations we will display the control numbers 
assigned by OMB to any information collection requirements proposed in 
this NPRM and adopted in the final regulations.

Determining the Suitability of Tests for Use in the NRS

    Section 462.10 describes when a test publisher may submit an 
application to the Secretary to have a standardized test evaluated to 
determine if it is suitable for measuring the educational gains of 
participants in adult education programs that are required to report 
under the NRS. Under our current regulations, tests may be submitted 
annually by October 1 of each year. We are proposing to amend Sec.  
462.10 to increase the opportunities for a test publisher to submit an 
application from once to twice a year during calendar years 2017 and 
2018. The intent of this proposal is to accommodate the review of what 
we expect will be a new generation of tests. The collection of this 
information has been approved through April 30, 2017, by OMB under the 
PRA as OMB Control Number 1830-0567. Under our current regulations, we 
estimated that we would receive five applications from test publishers 
on each of October 1, 2014, October 1, 2015, and October 1, 2016. The 
burden associated with each response is 40 hours (30 hours of work by 
professional employees and 10 hours by clerical employees), making 600 
hours the total burden hours approved for OMB Control Number 1830-0567 
over the three-year approval period. Our proposed regulations would 
give test publishers one additional opportunity during the approval 
period to submit applications (April 1, 2017). We estimate that this 
change will not modify the number of responses that we will receive 
annually from test publishers during the approval period. Rather, it 
will most likely spread out over two time periods the number of 
submissions we currently receive. Consequently, the total burden hours 
estimated under OMB Control Number 1830-0567 remains at 600 hours.
    Section 462.11 describes the required content of applications 
submitted by test publishers to the Secretary. We are proposing to 
amend Sec.  462.11 to increase the number of copies of an application 
that a test publisher must submit from three to four. This change will 
not increase the burden hours associated with each response and will 
have a negligible impact on the costs of responding.
    We also are proposing to amend Sec.  462.11, Sec.  462.12, and 
Sec.  462.14 to provide additional examples of the kinds of revisions 
to tests that we consider to be ``substantial'' and that thus require a 
new determination by the Secretary concerning the revised test's 
suitability for use in the NRS. Specifically, we are proposing to 
include as examples of ``substantial revisions'' changes in a test's 
mode of administration, administration procedures, forms, and the 
number of hours between pre- and post-testing. Under Sec.  462.11 and 
Sec.  462.14, a test publisher that has substantially revised a test 
approved for use in the NRS must submit to the Secretary the 
substantially revised test, an analysis that describes the reasons for 
the revision, a description of the revision's implications for the 
comparability of scores on the current test to scores on the previous 
test, and the results of validity, reliability, and equating or 
standard-setting studies undertaken subsequent to the revision. Section 
462.12 authorizes the Secretary to revoke the approval of a test if the 
Secretary determines that the test has been substantially revised. We 
do not expect the proposed changes to have an impact on the burden 
hours associated with OMB Control Number 1830-0567 because we expect 
that substantial revisions to standardized tests will be rare.
    Section 462.12 also describes the procedures the Secretary uses to 
review the suitability of tests submitted by test publishers. We are 
proposing to amend Sec.  462.12 to change the date when test publishers 
may resubmit applications for tests that the Secretary has determined 
are not suitable for use in the NRS. Under our current regulations, 
test publishers may resubmit an application within 30 days after the 
Secretary notifies the publisher that its test is not suitable for use 
in the NRS. We are proposing to eliminate this opportunity to request 
reconsideration and instead propose to give test publishers the 
opportunity to submit a new application on the next date the Secretary 
invites new applications from test publishers. Because the opportunity 
for reconsideration has been rarely used by test publishers, we do not 
expect that this change will have an impact on the burden hours 
associated with OMB Control Number 1830-0567.

Requirements States and Local Eligible Providers Must Follow When 
Measuring Educational Gain

    Subpart D of part 462 describes the requirements States and local 
eligible providers must follow when measuring educational gain under 
the NRS. It contains information collection requirements that have been 
approved by OMB through August 31, 2017, as OMB Control Number 1830-
0027. Section 462.40 currently describes the

[[Page 20978]]

required contents of the written assessment policy each State must 
establish for its local eligible providers. We are proposing to amend 
Sec.  462.40 to require the State to specify in its written assessment 
policy a standard for the percentage of students to be pre- and post-
tested. Each State is currently required to include this information as 
part of the Data Quality Checklist that it submits to the Department by 
the OMB Control Number 1830-0027 information collection. Because each 
State currently provides this information, this new regulatory 
requirement will not increase the burden associated with OMB Control 
Number 1830-0027.

Collection of Information

------------------------------------------------------------------------
                                                      OMB Control Number
                                      Information        and estimated
       Regulatory section             collection       burden [change in
                                                            burden]
------------------------------------------------------------------------
Sec.   462.10...................  The proposed        OMB 1830-0567.
                                   amendment to this   There would be no
                                   regulatory          change in burden
                                   provision would     hours or costs.
                                   give test
                                   publishers one
                                   additional
                                   opportunity to
                                   submit an
                                   application to
                                   have a
                                   standardized test
                                   evaluated to
                                   determine if it
                                   is suitable for
                                   use in the NRS.
Sec.   462.11...................  One of the          OMB 1830-0567.
                                   proposed            There would be no
                                   amendments would    change in burden
                                   increase the        hours or costs.
                                   number of copies
                                   of an application
                                   that must be
                                   submitted by a
                                   test publisher
                                   from three to
                                   four. A second
                                   proposed
                                   amendment would
                                   provide
                                   additional
                                   examples of the
                                   kinds of
                                   revisions to
                                   tests that we
                                   consider to be
                                   ``substantial''
                                   and that require
                                   a test publisher
                                   to provide
                                   information to
                                   the Secretary
                                   about the
                                   substantially
                                   revised test so
                                   that the
                                   Secretary can
                                   evaluate the
                                   substantially
                                   revised test's
                                   suitability for
                                   use in the NRS.
Sec.   462.12...................  The proposed        OMB 1830-0567.
                                   amendment would     There would be no
                                   eliminate the       change in burden
                                   opportunity for a   hours or costs.
                                   test publisher to
                                   request
                                   reconsideration
                                   of a test that
                                   the Secretary has
                                   determined is not
                                   suitable for use
                                   in the NRS. The
                                   test publisher
                                   would instead be
                                   permitted to
                                   submit a new
                                   application for
                                   consideration
                                   when the
                                   Secretary next
                                   invites
                                   applications.
Sec.   462.14...................  The proposed        OMB 1830-0567.
                                   amendment would     There would be no
                                   provide             change in burden
                                   additional          hours or costs.
                                   examples of the
                                   kinds of
                                   revisions to
                                   tests that we
                                   consider to be
                                   ``substantial''
                                   and that could
                                   prompt the
                                   Secretary to
                                   revoke a
                                   determination
                                   that a test is
                                   suitable for use
                                   in the NRS.
Sec.   462.40...................  The proposed        OMB 1830-0027.
                                   amendment to this   There would be no
                                   regulatory          change in burden
                                   provision would     hours or costs.
                                   require a State
                                   to include in its
                                   written
                                   assessment policy
                                   a standard for
                                   the percentage of
                                   students who will
                                   have a matched
                                   post-test
                                   completed.
------------------------------------------------------------------------

    If you want to comment on the proposed information collection 
requirements, please send your comments to the Office of Information 
and Regulatory Affairs, OMB, Attention: Desk Officer for U.S. 
Department of Education. Send these comments by email to 
<a href="/cdn-cgi/l/email-protection#410e0813001e050e020a0415012e2c236f242e316f262e37"><span class="__cf_email__" data-cfemail="86c9cfd4c7d9c2c9c5cdc3d2c6e9ebe4a8e3e9f6a8e1e9f0">[email protected]</span></a> or by fax to (202) 395-6974. You may also send 
a copy of these comments to the Department contact named in the 
ADDRESSES section of this preamble.
    We have prepared Information Collection Requests (ICR) for these 
collections. In preparing your comments you may want to review the ICR, 
which is available at www.reginfo.gov. Click on Information Collection 
Review. These proposed collections are 1830-0567 and 1830-0027.
    We consider your comments on these proposed collections of 
information in--
    <bullet> Deciding whether the proposed collections are necessary 
for the proper performance of our functions, including whether the 
information will have practical use;
    <bullet> Evaluating the accuracy of our estimate of the burden of 
the proposed collections, including the validity of our methodology and 
assumptions;
    <bullet> Enhancing the quality, usefulness, and clarity of the 
information we collect; and
    <bullet> Minimizing the burden on those who must respond. This 
includes exploring the use of appropriate automated, electronic, 
mechanical, or other technological collection techniques.
    OMB is required to make a decision concerning the collection of 
information contained in these proposed regulations between 30 and 60 
days after publication of this document in the Federal Register. 
Therefore, to ensure that OMB gives your comments full consideration, 
it is important that OMB receives your comments by May 18, 2015. This 
does not affect the deadline for submitting comments to us on the 
proposed regulations.

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.

Assessment of Educational Impact

    In accordance with section 411 of the General Education Provisions 
Act, 20 U.S.C. 1221e-4, the Secretary particularly requests comments on 
whether these proposed regulations would require transmission of 
information that any other agency or authority of the United States 
gathers or makes available.

[[Page 20979]]

Federalism

    Executive Order 13132 requires us to ensure meaningful and timely 
input by State and local elected officials in the development of 
regulatory policies that have federalism implications. ``Federalism 
implications'' means 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. The proposed regulations in parts 462 and 463 may have 
federalism implications. We encourage State and local elected officials 
to review and provide comments on these proposed regulations.
    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 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.

(Catalog of Federal Domestic Assistance Number: 84.002
    Adult Education--Basic Grants to States)

List of Subjects

34 CFR Part 461

    Administrative practice and procedure, Adult education, Grant 
programs-education.

34 CFR Part 462

    Administrative practice and procedure, Adult education, Grant 
programs-education, Reporting and recordkeeping requirements.

34 CFR Part 463

    Adult education, Grant programs-education.

34 CFR Part 472

    Administrative practice and procedure, Adult education, Grant 
programs-education, Reporting and recordkeeping requirements.

34 CFR Part 477

    Administrative practice and procedure, Adult education, Grant 
programs-education.

34 CFR Part 489

    Administrative practice and procedure, Adult education, Grant 
programs-education, Reporting and recordkeeping requirements.

34 CFR Part 490

    Adult education, Grant programs--education, Prisoners, Reporting 
and recordkeeping requirements.

    Dated: March 6, 2015.
Arne Duncan,
Secretary of Education.
    For the reasons discussed in this preamble, under the authority of 
29 U.S.C. 3271 et seq. and 3343(f), the Secretary proposes to amend 
title 34 of the Code of Federal Regulations as follows:

PART 461 [REMOVED AND RESERVED]

0
1. Remove and reserve part 461.

PART 462--MEASURING EDUCATIONAL GAIN IN THE NATIONAL REPORTING 
SYSTEM FOR ADULT EDUCATION


0
2. The authority citation for part 462 is revised to read as follows:

    Authority: 29 U.S.C. 3292, et seq., unless otherwise noted.
0
3. The authority citation at the end of Sec.  462.1 is revised to read 
as follows:


Sec.  462.1  What is the scope of this part?

* * * * *

(Authority: 29 U.S.C. 3292)


0
4. Section 462.2 is revised to read as follows:


Sec.  462.2  What regulations apply?

    The following regulations apply to this part:
    (a) The Education Department General Administrative Regulations 
(EDGAR) as follows:
    (1) 34 CFR part 76 (State-Administered Programs).
    (2) 34 CFR part 77 (Definitions that Apply to Department 
Regulations).
    (3) 34 CFR part 79 (Intergovernmental Review of Department of 
Education Programs and Activities).
    (4) 34 CFR part 81 (General Education Provisions Act--Enforcement).
    (5) 34 CFR part 82 (New Restrictions on Lobbying).
    (6) 34 CFR part 84 (Governmentwide Requirements for Drug-Free 
Workplace (Financial Assistance)).
    (7) 34 CFR part 86 (Drug and Alcohol Abuse Prevention).
    (8) 34 CFR part 97 (Protection of Human Subjects).
    (9) 34 CFR part 98 (Student Rights in Research, Experimental 
Programs, and Testing).
    (10) 34 CFR part 99 (Family Educational Rights and Privacy).
    (b) The regulations in this part 462.
    (c)(1) 2 CFR part 180 (OMB Guidelines to Agencies on Governmentwide 
Debarment and Suspension (Nonprocurement)), as adopted at 2 CFR part 
3485; and
    (2) 2 CFR part 200 (Uniform Administrative Requirements, Cost 
Principles, and Audit Requirements for Federal Awards), as adopted at 2 
CFR part 3474.

(Authority: 29 U.S.C. 3292)


0
5. Section 462.3 is amended by:
0
a. Revising the introductory text of paragraph (a).
0
b. Revising the definition of ``Adult basic education (ABE)'' in 
paragraph (b).
0
c. Revising paragraphs (1), (3)(i), and (3)(iii) of the definition of 
``Adult education population'' in paragraph (b).
0
d. Revising the definitions of ``Adult secondary education (ASE)'', 
``Content domains, content specifications, or NRS skill areas'', and 
``Educational functioning levels'' in paragraph (b).
0
e. Removing the definition of ``English-as-a-second language (ESL)'' 
from paragraph (b).
0
f. Adding a definition of ``English language acquisition (ELA)'' to 
paragraph (b) in alphabetical order.
0
g. Revising the definition of ``Guidelines'' in paragraph (b).
    The additions and revisions read as follows:


Sec.  462.3  What definitions apply?

    (a) Definitions in the Adult Education and Family Literacy Act 
(Act). The following terms used in these regulations are defined in 
section 203 of the Adult Education and Family Literacy Act, 29 U.S.C. 
3272 (Act):
* * * * *
    (b) * * *
    Adult basic education (ABE) means instruction designed for an adult 
whose educational functioning level is equivalent to a particular ABE 
literacy level listed in the NRS educational functioning level table in 
the Guidelines.

[[Page 20980]]

    Adult education population means individuals--
    (1) Who have attained 16 years of age;
* * * * *
    (3) * * *
    (i) Are basic skills deficient;
    (ii) * * *
    (iii) Are English language learners.
    Adult secondary education (ASE) means instruction designed for an 
adult whose educational functioning level is equivalent to a particular 
ASE literacy level listed in the NRS educational functioning level 
table in the Guidelines.
    Content domains, content specifications, or NRS skill areas mean, 
for the purpose of the NRS, reading, writing, and speaking the English 
language, mathematics, problem solving, English language acquisition, 
and other literacy skills as defined by the Secretary.
    Educational functioning levels mean the ABE, ASE, and ELA literacy 
levels, as provided in the Guidelines, that describe a set of skills 
and competencies that students demonstrate in the NRS skill areas.
    English language acquisition (ELA) means instruction designed for 
an adult whose educational functioning level is equivalent to a 
particular ELA literacy level listed in the NRS educational functioning 
level table in the Guidelines.
    Guidelines means the Implementation Guidelines: Measures and 
Methods for the National Reporting System for Adult Education (also 
known as NRS Implementation Guidelines) posted on the Internet at: 
www.nrsweb.org.
* * * * *

(Authority: 29 U.S.C. 3292, et seq., unless otherwise noted)

0
6. Section 462.4 is revised to read as follows:


Sec.  462.4  What are the transition rules for using tests to measure 
educational gain for the National Reporting System for Adult Education 
(NRS)?

    A State or a local eligible provider may continue to measure 
educational gain for the NRS using tests that the Secretary has 
identified in the most recent notice published in the Federal Register 
until the Secretary announces through a notice published in the Federal 
Register a date by which such tests may no longer be used.

(Authority: 29 U.S.C. 3292)

0
7. Section 462.10 is amended by revising paragraph (b) and the 
authority citation to read as follows:


Sec.  462.10  How does the Secretary review tests?

* * * * *
    (b) A test publisher that wishes to have the suitability of its 
test determined by the Secretary under this part must submit an 
application to the Secretary, in the manner the Secretary may 
prescribe, by October 1, 2016, April 1, 2017, October 1, 2017, April 1, 
2018, October 1, 2018, and by October 1 of each year thereafter.

(Authority: 29 U.S.C. 3292)

0
8. Section 462.11 is amended by revising paragraphs (a)(4), (b)(1), (e) 
introductory text, (f) introductory text, and (j)(4) and the authority 
citation to read as follows:


Sec.  462.11  What must an application contain?

    (a) * * *
    (4) Submit to the Secretary four copies of its application.
    (b) General information. (1) A statement, in the technical manual 
for the test, of the intended purpose of the test and how the test will 
allow examinees to demonstrate the skills that are associated with the 
NRS educational functioning levels in the Guidelines.
* * * * *
    (e) Match of content to the NRS educational functioning levels 
(content validity). Documentation of the extent to which the items or 
tasks on the test cover the skills in the NRS educational functioning 
levels in the Guidelines, including---
* * * * *
    (f) Match of scores to NRS educational functioning levels. 
Documentation of the adequacy of the procedure used to translate the 
performance of an examinee on a particular test to an estimate of the 
examinee's standing with respect to the NRS educational functioning 
levels in the Guidelines, including--
* * * * *
    (j) * * *
    (4) If a test has been substantially revised--for example by 
changing its mode of administration, administration procedures, 
structure, number of items, content specifications, item types, forms, 
sub-tests, or number of hours between pre- and post-testing--from the 
most recent edition reviewed by the Secretary under this part, the test 
publisher must provide an analysis of the revisions, including the 
reasons for the revisions, the implications of the revisions for the 
comparability of scores on the current test to scores on the previous 
test, and results from validity, reliability, and equating or standard-
setting studies undertaken subsequent to the revisions.

(Authority: 29 U.S.C. 3292)

0
9. Section 462.12 is amended by revising paragraphs (a)(2)(i)(iv), 
(c)(2), (d)(2), (e)(1)(ii), (e)(2) introductory text, and (e)(5), and 
the authority citation to read as follows:


Sec.  462.12  What procedures does the Secretary use to review the 
suitability of tests?

    (a) * * *
    (2) * * *
    (i) * * *
    (iv) Includes a test that samples one or more of the major content 
domains of the NRS educational functioning levels of ABE, ELA, or ASE 
with sufficient numbers of questions to represent adequately the domain 
or domains; and
* * * * *
    (c) * * *
    (2) Annually publishes in the Federal Register and posts on the 
Internet at www.nrsweb.org a list of the names of tests and test forms 
and the educational functioning levels the tests are suitable to 
measure in the NRS. A copy of the list is also available from the U.S. 
Department of Education, Office of Career, Technical, and Adult 
Education, Division of Adult Education and Literacy, 400 Maryland 
Avenue SW., room 11152, Potomac Center Plaza, Washington, DC 20202-
7240.
    (d) * * *
    (2) The test publisher may resubmit an application to have the 
suitability of its test determined by the Secretary under this part on 
October 1 in the year immediately following the year in which the 
Secretary notifies the publisher.
    (e) * * *
    (1) * * *
    (ii) A test has been substantially revised--for example, by 
changing its mode of administration, administration procedures, 
structure, number of items, content specifications, item types, forms 
or sub-tests, or number of hours between pre- and post-testing.
    (2) The Secretary notifies the test publisher of the--
* * * * *
    (5) If the Secretary revokes the determination regarding the 
suitability of a test, the Secretary will publish in the Federal 
Register, and post on the Internet at www.nrsweb.org, a notice of that 
revocation along with the date by which States and local eligible 
providers must stop using the revoked test. A copy of the notice of 
revocation will also be available from the U.S. Department of 
Education, Office of Career, Technical, and Adult Education, Division 
of Adult Education and Literacy, 400 Maryland Avenue SW., room 11152, 
Potomac Center Plaza, Washington, DC 20202-7240.

[[Page 20981]]


(Authority: 29 U.S.C. 3292)

0
10. Section 462.13 is amended by revising paragraph (b) to read as 
follows:


Sec.  462.13  What criteria and requirements does the Secretary use for 
determining the suitability of tests?

* * * * *
    (b) The test must sample one or more of the major content domains 
of the NRS educational functioning levels of ABE, ELA, or ASE with 
sufficient numbers of questions to adequately represent the domain or 
domains.
* * * * *

(Authority: 29 U.S.C. 3292)


0
11. Section 462.14 is amended by revising paragraph (b) and the 
authority citation to read as follows:


Sec.  462.14  How often and under what circumstances must a test be 
reviewed by the Secretary?

* * * * *
    (b) If a test that the Secretary has determined is suitable for use 
in the NRS is substantially revised--for example, by changing its mode 
of administration, administration procedures, structure, number of 
items, content specifications, item types, forms, sub-tests, or number 
of hours between pre- and post-testing--and the test publisher wants 
the test to continue to be used in the NRS, the test publisher must 
submit, as provided in Sec.  462.11(j)(4), the substantially revised 
test or version of the test to the Secretary for review so that the 
Secretary can determine whether the test continues to be suitable for 
use in the NRS.

(Authority: 29 U.S.C. 3292)


0
12. Section 462.40 is amended by revising paragraph (c)(3) and the 
authority citation to read as follows:


Sec.  462.40  Must a State have an assessment policy?

* * * * *
    (c) * * *
    (3)(i) Indicate when, in calendar days or instructional hours, 
local eligible providers must administer pre- and post-tests to 
students;
    (ii) Ensure that the time for administering the post-test is long 
enough after the pre-test to allow the test to measure educational 
gains according to the test publisher's guidelines; and
    (iii) Specify a standard for the percentage of students who will 
have a matched post-test completed.
* * * * *

(Authority: 29 U.S.C. 3292)


0
13. Section 462.41 is amended by revising paragraphs (b)(2) and (3), 
(c)(3), and the authority citation to read as follows:


Sec.  462.41  How must tests be administered in order to accurately 
measure educational gain for the purpose of the performance indicator 
in section 116(b)(2)(A)(i)(V) of the Act concerning the achievement of 
measurable skill gains?

* * * * *
    (b) * * *
    (2) Administer the pre-test to students at a uniform time, 
according to the State's assessment policy; and
    (3) Administer pre-tests to students in the skill areas identified 
in the State's assessment policy.
    (c) * * *
    (2) Administer the post-test to students at a uniform time, 
according to the State's assessment policy;
* * * * *

(Authority: 29 U.S.C. 3292)


0
14. The authority citation at the end of Sec.  462.42 is revised to 
read as follows:


Sec.  462.42  How are tests used to place students at an NRS 
educational functioning level?

* * * * *

(Authority: 29 U.S.C. 3292)


0
15. Section 462.43 is amended by:
0
a. Revising the section heading and paragraphs (a)(1) and (b).
0
b. Adding paragraph (c).
0
c. Revising the authority citation.
    The revisions and addition read as follows:


Sec.  462.43  How is educational gain measured for the purpose of the 
performance indicator in section 116(b)(2)(A)(i)(V) of the Act 
concerning the achievement of measurable skill gains?

    (a)(1) Educational gain is measured by comparing the student's 
initial educational functioning level, as measured by the pre-test 
described in Sec.  462.41(b), with the student's educational 
functioning level as measured by the post-test described in Sec.  
462.41(c).

    Example:  A State's assessment policy requires its local 
eligible providers to test students in reading and mathematics. The 
student scores lower in reading than in mathematics. As described in 
Sec.  462.42(d)(1), the local eligible provider would use the 
student's reading score to place the student in an educational 
functioning level. To measure the student's educational gain, the 
local eligible provider would compare the reading score on the pre-
test with the reading score on the post-test.
* * * * *
    (b) Except as specified in paragraph (c) of this section, if a 
student is not post-tested, then no educational gain can be measured 
for that student and the local eligible provider must report the 
student in the same educational functioning level as initially placed 
for NRS reporting purposes.
    (c) States that offer adult high school programs, sanctioned by 
State law, code, or regulation, that lead to a secondary school diploma 
or its equivalent may measure and report educational gain through the 
awarding of credits or Carnegie units.

(Authority: 29 U.S.C. 3292)

Sec.  462.44  [Removed]

0
16. Remove Sec.  462.44.
0
17. Add part 463 to read as follows:

PART 463--ADULT EDUCATION AND FAMILY LITERACY ACT

Subpart A--Adult Education General Provisions

Sec.
463.1 What is the purpose of the Adult Education and Family Literacy 
Act?
463.2 What regulations apply to the Adult Education and Family 
Literacy Act programs?
463.3 What definitions apply to the Adult Education and Family 
Literacy Act programs?
Subpart B [RESERVED]
Subpart C --How does a State Make an Award to Eligible Local Providers?
463.20 What is the process that the eligible agency must follow in 
awarding grants or contracts to eligible providers?
463.21 What processes must be in place to determine the extent to 
which a local application for grants or contracts to provide adult 
education and literacy services is aligned with a local plan under 
section 108?
463.22 What must be included in the eligible provider's application 
for a grant or contract?
463.23 Who is eligible to apply for a grant or contract to provide 
adult education and literacy activities?
463.24 How can an eligible provider establish that it has 
demonstrated effectiveness?
463.25 What are the requirements related to local administrative 
cost limits?
463.26 What activities are considered local administrative costs?
Subpart D--What are Adult Education and Literacy Activities?
463.30 What are adult education and literacy programs, activities, 
and services?
463.31 What is an English language acquisition program?
463.32 How does a program that is intended to be an English language 
acquisition program meet the requirement that the program lead to 
attainment of a secondary school diploma or its recognized 
equivalent and transition to postsecondary education and training or 
leads to employment?
463.33 What are integrated English literacy and civics education 
services?

[[Page 20982]]

463.34 What are workforce preparation activities?
463.35 What is integrated education and training?
463.36 What are the required components of an integrated education 
and training program funded under title II?
463.37 How does a program providing integrated education and 
training under title II meet the requirement that the three required 
components be ``integrated''?
463.38 How does a program providing integrated education and 
training under title II meet the requirement that an integrated 
education and training program be ``for the purpose of educational 
and career advancement''?
Subpart E [RESERVED]
Subpart F--What are Programs for Corrections Education and the 
Education of Other Institutionalized Individuals?
463.60 What are programs for corrections education and the education 
of other institutionalized individuals?
463.61 How does the eligible agency award funds to eligible 
providers under programs for corrections education and the education 
of other institutionalized individuals?
463.62 What is the priority for programs that receive funding 
through programs for corrections education and the education of 
other institutionalized individuals?
463.63 How may funds under programs for corrections education and 
the education of other institutionalized individuals be used to 
support transition to re-entry initiatives and other post-release 
services with the goal of reducing recidivism?
Subpart G--What Is the Integrated English Literacy and Civics Education 
Program?
463.70 What is the Integrated English Literacy and Civics Education 
program?
463.71 How does the Secretary make an award under the Integrated 
English Literacy and Civics Education program?
463.72 How does the eligible agency award funds to eligible 
providers for the Integrated English Literacy and Civics Education 
program?
463.73 What are the requirements for eligible providers that receive 
funding through the Integrated English Literacy and Civics Education 
program?
463.74 How does an eligible provider that receives funds through the 
Integrated English Literacy and Civics Education program meet the 
requirement to provide services in combination with integrated 
education and training?
463.75 Who is eligible to receive education services through the 
Integrated English Literacy and Civics Education program?
Subparts H-K [RESERVED]

    Authority:  29 U.S.C. 3271, et seq., unless otherwise noted.

Subpart A--Adult Education General Provisions


Sec.  463.1  What is the purpose of the Adult Education and Family 
Literacy Act?

    The purpose of the Adult Education and Family Literacy Act (AEFLA) 
is to create a partnership among the Federal Government, States, and 
localities to provide, on a voluntary basis, adult education and 
literacy activities, in order to--
    (a) Assist adults to become literate and obtain the knowledge and 
skills necessary for employment and economic self-sufficiency;
    (b) Assist adults who are parents or family members to obtain the 
education and skills that--
    (1) Are necessary to becoming full partners in the educational 
development of their children; and
    (2) Lead to sustainable improvements in the economic opportunities 
for their family;
    (c) Assist adults in attaining a secondary school diploma and in 
the transition to postsecondary education and training, through career 
pathways; and
    (d) Assist immigrants and other individuals who are English 
language learners in--
    (1) Improving their--
    (i) Reading, writing, speaking, and comprehension skills in 
English; and
    (ii) Mathematics skills; and
    (2) Acquiring an understanding of the American system of 
Government, individual freedom, and the responsibilities of 
citizenship.

(Authority: 29 U.S.C. 3271)


Sec.  463.2  What regulations apply to the Adult Education and Family 
Literacy Act programs?

    The following regulations apply to the Adult Education and Family 
Literacy Act programs:
    (a) The following Education Department General Administrative 
Regulations (EDGAR):
    (1) 34 CFR part 75 (Direct Grant Programs), except that 34 CFR 
75.720(b), regarding the frequency of certain reports, does not apply.
    (2) 34 CFR part 76 (State-Administered Programs), except that 34 
CFR 76.101 (the general State application) does not apply.
    (3) 34 CFR part 77 (Definitions that Apply to Department 
Regulations).
    (4) 34 CFR part 79 (Intergovernmental Review of Department of 
Education Programs and Activities).
    (5) 34 CFR part 81 (General Education Provisions Act--Enforcement).
    (6) 34 CFR part 82 (New Restrictions on Lobbying).
    (7) 34 CFR part 86 (Drug and Alcohol Prevention).
    (8) 2 CFR part 200 (Uniform Administrative Requirements, Cost 
Principles, and Audit Requirements for Federal Awards), as adopted at 2 
CFR part 3474.
    (b) The regulations in 34 CFR part 462.
    (c) The regulations in 34 CFR part 463.


Sec.  463.3  What definitions apply to the Adult Education and Family 
Literacy Act programs?

    (a) Definitions in the Workforce Innovation and Opportunity Act. 
The following terms are defined in Sections 3, 134, 203, and 225 of the 
Workforce Innovation and Opportunity Act (29 U.S.C. 3102, 3174, 3272, 
and 3305):
Adult Education
Adult Education and Literacy Activities
Basic Skills Deficient
Career Pathway
Core Program
Core Program Provision
Correctional Institution
Criminal Offender
Customized Training
Eligible Agency
Eligible Individual
Eligible Provider
English Language Acquisition Program
English Language Learner
Essential Components of Reading
Family Literacy Activities
Governor
Individual with a Barrier to Employment
Individual with a Disability
Institution of Higher Education
Integrated Education and Training
Integrated English Literacy and Civics Education
Literacy
Local Educational Agency
On-the-Job Training
Outlying Area
Postsecondary Educational Institution
State
Training Services
Workplace Adult Education and Literacy Activities
Workforce Preparation Activities
    (b) Definitions in EDGAR. The following terms are defined in 34 CFR 
77.1:
Applicant
Application
Award
Budget
Budget Period
Contract
Department
ED
EDGAR
Fiscal Year
Grant

[[Page 20983]]

Grantee
Nonprofit
Private
Project
Project Period
Public
Secretary
Subgrant
Subgrantee
    (c) Other definitions. The following definitions also apply:
    Act means the Workforce Innovation and Opportunity Act, Public Law 
113--128.
    Concurrent enrollment or co-enrollment, for the purpose of this 
subpart F, refers to enrollment by an individual in two or more of the 
programs administered under the four core programs.
    Digital literacy means the skills associated with using technology 
to enable users to find, evaluate, organize, create, and communicate 
information.
    Peer tutoring means an instructional model that utilizes one 
institutionalized individual to assist in providing or enhancing 
learning opportunities for other institutionalized individuals. A peer 
tutoring program must be structured and overseen by educators who 
assist with training and supervising tutors, setting educational goals, 
establishing an individualized plan of instruction, and monitoring 
progress.
    Re-entry initiatives and post-release services means services 
provided to a formerly incarcerated individual upon or shortly after 
release from prison that are designed to promote successful adjustment 
to the community and prevent recidivism. Examples include education, 
employment services, substance abuse treatment, housing support, mental 
and physical health care, and family reunification services.
    Title means title II of the Act.

Subpart B [RESERVED]

Subpart C--How Does a State Make an Award to Eligible Local 
Providers?


Sec.  463.20  What is the process that the eligible agency must follow 
in awarding grants or contracts to eligible providers?

    (a) From grant funds made available under section 222(a)(1) of the 
Act, each eligible agency must award competitive multiyear grants or 
contracts to eligible providers within the State or outlying area to 
enable the eligible providers to develop, implement, and improve adult 
education and literacy activities within the State or outlying area.
    (b) The eligible agency must require that each eligible provider 
receiving a grant or contract use the funding to establish or operate 
programs that provide adult education and literacy activities, 
including programs that provide such activities concurrently.
    (c) In conducting the competitive grant process, the eligible 
agency must ensure that--
    (1) All eligible providers have direct and equitable access to 
apply and compete for grants or contracts;
    (2) The same grant or contract announcement and application 
processes are used for all eligible providers in the State or outlying 
area; and
    (3) In awarding grants or contracts to eligible local providers for 
adult education and literacy activities, funds are not used for the 
purpose of supporting or providing programs, services, or activities 
for individuals who are not eligible individuals as defined in the Act, 
except that such agency may use such funds for such purpose if such 
programs, services, or activities are related to family literacy 
activities. Prior to providing family literacy activities for 
individuals who are not eligible individuals, an eligible provider must 
attempt to coordinate with programs and services that do not receive 
funding under this title.
    (d) In awarding grants or contracts for adult education and 
literacy activities to eligible providers, the eligible agency must 
consider the following:
    (1) The degree to which the eligible provider would be responsive 
to--
    (i) Regional needs as identified in the local workforce development 
plan; and
    (ii) Serving individuals in the community who were identified in 
such plan as most in need of adult education and literacy activities, 
including individuals who--
    (A) Have low levels of literacy skills; or
    (B) Are English language learners;
    (2) The ability of the eligible provider to serve eligible 
individuals with disabilities, including eligible individuals with 
learning disabilities;
    (3) The past effectiveness of the eligible provider in improving 
the literacy of eligible individuals, especially those individuals who 
have low levels of literacy, and the degree to which those improvements 
contribute to the eligible agency meeting its State-adjusted levels of 
performance for the primary indicators of performance described in 
Sec.  677.155;
    (4) The extent to which the eligible provider demonstrates 
alignment between proposed activities and services and the strategy and 
goals of the local plan under section 108 of the Act, as well as the 
activities and services of the one-stop partners;
    (5) Whether the eligible provider's program--
    (i) Is of sufficient intensity and quality, and based on the most 
rigorous research available so that participants achieve substantial 
learning gains; and
    (ii) Uses instructional practices that include the essential 
components of reading instruction;
    (6) Whether the eligible provider's activities, including whether 
reading, writing, speaking, mathematics, and English language 
acquisition instruction delivered by the eligible provider, are based 
on the best practices derived from the most rigorous research 
available, including scientifically valid research and effective 
educational practice;
    (7) Whether the eligible provider's activities effectively use 
technology, services and delivery systems, including distance 
education, in a manner sufficient to increase the amount and quality of 
learning, and how such technology, services, and systems lead to 
improved performance;
    (8) Whether the eligible provider's activities provide learning in 
context, including through integrated education and training, so that 
an individual acquires the skills needed to transition to and complete 
postsecondary education and training programs, obtain and advance in 
employment leading to economic self-sufficiency, and to exercise the 
rights and responsibilities of citizenship;
    (9) Whether the eligible provider's activities are delivered by 
instructors, counselors, and administrators who meet any minimum 
qualifications established by the State, where applicable, and who have 
access to high-quality professional development, including through 
electronic means;
    (10) Whether the eligible provider coordinates with other available 
education, training, and social service resources in the community, 
such as by establishing strong links with elementary schools and 
secondary schools, postsecondary educational institutions, institutions 
of higher education, local workforce investment boards, one-stop 
centers, job training programs, and social service agencies, business, 
industry, labor organizations, community-based organizations, nonprofit 
organizations, and intermediaries, in the development of career 
pathways;
    (11) Whether the eligible provider's activities offer the flexible 
schedules and coordination with Federal, State, and local support 
services (such as child care, transportation, mental health services, 
and career planning) that are necessary to enable individuals, 
including individuals with disabilities

[[Page 20984]]

or other special needs, to attend and complete programs;
    (12) Whether the eligible provider maintains a high-quality 
information management system that has the capacity to report 
measurable participant outcomes (consistent with section Sec.  677.155) 
and to monitor program performance; and
    (13) Whether the local area in which the eligible provider is 
located has a demonstrated need for additional English language 
acquisition programs and civics education programs.

(Authority: 29 U.S.C. 3321)

Sec.  463.21  What processes must be in place to determine the extent 
to which a local application for grants or contracts to provide adult 
education and literacy services is aligned with a local plan under 
section 108?

    (a) An eligible agency must establish, within its grant or contract 
competition, a process that requires an eligible provider applying for 
funds under AEFLA to submit its application to its Local Board prior to 
submission to the eligible agency.
    (b) The process must require eligible providers to--
    (1) Submit the application to the Local Board for its review for 
consistency with the local plan within the appropriate timeframe; and
    (2) Provide an opportunity for the Local Board to make 
recommendations to the eligible agency to promote alignment with the 
local plan.
    (c) The eligible agency must consider the results of the review by 
the Local Board in determining the extent to which the application 
addresses the required considerations in Sec.  463.20.

(Authority: 29 U.S.C. 3122(d)(11), 3321(e), 3322)

Sec.  463.22  What must be included in the eligible provider's 
application for a grant or contract?

    (a) Each eligible provider seeking a grant or contract must submit 
an application to the eligible agency containing the following 
information and assurances:
    (1) A description of how funds awarded under this title will be 
spent consistent with the requirements of title II of AEFLA;
    (2) A description of any cooperative arrangements the eligible 
provider has with other agencies, institutions, or organizations for 
the delivery of adult education and literacy activities;
    (3) A description of how the eligible provider will provide 
services in alignment with the local workforce development plan, 
including how such provider will promote concurrent enrollment in 
programs and activities under title I, as appropriate;
    (4) A description of how the eligible provider will meet the State-
adjusted levels of performance for the primary indicators of 
performance identified in the State's Unified or Combined State Plan, 
including how such provider will collect data to report on such 
performance indicators;
    (5) A description of how the eligible provider will fulfill, as 
appropriate, required one-stop partner responsibilities to--
    (i) Provide access through the one-stop delivery system to adult 
education and literacy activities;
    (ii) Use a portion of the funds made available under the Act to 
maintain the one-stop delivery system, including payment of the 
infrastructure costs of the one-stop centers, in accordance with the 
methods agreed upon by the Local Board and described in the memorandum 
of understanding or the determination of the Governor regarding State 
one-stop infrastructure funding;
    (iii) Enter into a local memorandum of understanding with the Local 
Board, relating to the operations of the one-stop system;
    (iv) Participate in the operation of the one-stop system consistent 
with the terms of the memorandum of understanding and the requirements 
of the Act; and
    (v) Provide representation on the State board;
    (6) A description of how the eligible provider will provide 
services in a manner that meets the needs of eligible individuals;
    (7) Information that addresses the 13 considerations listed in 
Sec.  463.20;
    (8) Documentation of the activities required by Sec.  463.21(b);
    (9) Information, as required under Sec.  463.24, establishing that 
the eligible provider has demonstrated effectiveness; and
    (10) Any other information required by the eligible agency.
    (b) [Reserved]

(Authority: 29 U.S.C. 3322)

Sec.  463.23  Who is eligible to apply for a grant or contract to 
provide adult education and literacy activities?

    An organization that has demonstrated effectiveness in providing 
adult education and literacy activities is eligible to apply for a 
grant or contract. These organizations may include, but are not limited 
to:
    (a) A local educational agency;
    (b) A community-based organization or faith-based organization;
    (c) A volunteer literacy organization;
    (d) An institution of higher education;
    (e) A public or private nonprofit agency;
    (f) A library;
    (g) A public housing authority;
    (h) A nonprofit institution that is not described in any of 
paragraphs (a) through (g) of this section, and has the ability to 
provide adult education and literacy activities to eligible 
individuals;
    (i) A consortium or coalition of the agencies, organizations, 
institutions, libraries, or authorities described in any of paragraphs 
(a) through (h) of this section; and
    (j) A partnership between an employer and an entity described in 
any of paragraphs (a) through (i) of this section.

(Authority: 29 U.S.C. 3272(5))

Sec.  463.24  How must an eligible provider establish that it has 
demonstrated effectiveness?

    (a) For the purposes of this section, an eligible provider must 
demonstrate past effectiveness by providing performance data on its 
record of improving the skills of eligible individuals, particularly 
eligible individuals who have low levels of literacy, in the content 
domains of English language arts, mathematics, English language 
acquisition, and other subject areas relevant to the proposed services 
described in the eligible provider's application submitted under Sec.  
463.22. An eligible provider must also provide information regarding 
its outcomes for participants related to employment, high school 
completion, and transition to postsecondary education and training.
    (b) An eligible provider that has been previously funded under 
AEFLA must provide performance data required under its accountability 
provisions to demonstrate effectiveness.
    (c) An eligible provider that has not been previously funded under 
AEFLA must provide performance data to demonstrate its effectiveness in 
serving basic skill-deficient eligible individuals, including evidence 
of its success in achieving the outcomes listed in paragraph (a) of 
this section.

(Authority: 29 U.S.C. 3272(5))

Sec.  463.25  What are the requirements related to local administrative 
cost limits?

    Not more than 5 percent of a local grant to an eligible provider 
can be expended to administer a grant or contract under title II. In 
cases where 5 percent is too restrictive to allow for administrative 
activities, the eligible provider must negotiate with the eligible 
agency to determine an adequate level of funds to be used for non-
instructional purposes.

(Authority: 29 U.S.C. 3323)


[[Page 20985]]




Sec.  463.26  What activities are considered local administrative 
costs?

    An eligible provider receiving a grant or contract under this part 
may consider costs incurred in connection with the following activities 
to be administrative costs:
    (a) Planning;
    (b) Administration, including carrying out performance 
accountability requirements;
    (c) Professional development;
    (d) Providing adult education and literacy services in alignment 
with local workforce plans, including promoting co-enrollment in 
programs and activities under title I, as appropriate; and
    (e) Carrying out the one-stop partner responsibilities described in 
Sec.  678.420, including contributing to the infrastructure costs of 
the one-stop delivery system.

(Authority: 29 U.S.C. 3323, 3322, 3151)

Subpart D--What Are Adult Education and Literacy Activities?


Sec.  463.30  What are adult education and literacy programs, 
activities, and services?

    The term ``adult education and literacy activities'' means 
programs, activities, and services that include:
    (a) Adult education,
    (b) Literacy,
    (c) Workplace adult education and literacy activities,
    (d) Family literacy activities,
    (e) English language acquisition activities,
    (f) Integrated English literacy and civics education,
    (g) Workforce preparation activities, or
    (h) Integrated education and training.

(Authority: 29 U.S.C. 3272(2))

Sec.  463.31  What is an English language acquisition program?

    The term ``English language acquisition program'' means a program 
of instruction--
    (a) That is designed to help eligible individuals who are English 
language learners achieve competence in reading, writing, speaking, and 
comprehension of the English language; and
    (b) That leads to--
    (1)(i) Attainment of a secondary school diploma or its recognized 
equivalent; and
    (ii) Transition to postsecondary education and training; or
    (2) Employment.

(Authority: 29 U.S.C. 3272(6))

Sec.  463.32  How does a program that is intended to be an English 
language acquisition program meet the requirement that the program 
leads to attainment of a secondary school diploma or its recognized 
equivalent and transition to postsecondary education and training or 
leads to employment?

    To meet the requirement in Sec.  463.31(b), a program of 
instruction must:
    (a) Have implemented State adult education content standards that 
are aligned with the State adopted standards under ESEA as described in 
the State's Unified or Combined State Plan and as evidenced by the use 
of a curriculum that is aligned with the State adult education content 
standards; or
    (b) Offer supportive services that assist an eligible individual to 
attain a secondary school diploma or its recognized equivalent and 
transition to postsecondary education or employment; or
    (c) Be part of a career pathway.

(Authority: 29 U.S.C. 3112(b)(2)(D)(ii), 3272)

Sec.  463.33  What are integrated English literacy and civics education 
services?

    (a) Integrated English literacy and civics education services are 
education services provided to English language learners who are 
adults, including professionals with degrees or credentials in their 
native countries, that enable such adults to achieve competency in the 
English language and acquire the basic and more advanced skills needed 
to function effectively as parents, workers, and citizens in the United 
States.
    (b) Integrated English literacy and civics education services must 
include instruction in literacy and English language acquisition and 
instruction on the rights and responsibilities of citizenship and civic 
participation and may include workforce training.

(Authority: 29 U.S.C. 3272(12))

Sec.  463.34  What are workforce preparation activities?

    Workforce preparation activities include activities, programs, or 
services designed to help an individual acquire a combination of basic 
academic skills, critical thinking skills, digital literacy skills, and 
self-management skills, including competencies in:
    (a) Utilizing resources;
    (b) Using information;
    (c) Working with others;
    (d) Understanding systems;
    (e) Skills necessary for successful transition into and completion 
of postsecondary education or training, or employment; and
    (f) Other employability skills that increase an individual's 
preparation for the workforce.

(Authority: 29 U.S.C. 3272(17))

Sec.  463.35  What is integrated education and training?

    The term ``integrated education and training'' refers to a service 
approach that provides adult education and literacy activities 
concurrently and contextually with workforce preparation activities and 
workforce training for a specific occupation or occupational cluster 
for the purpose of educational and career advancement.

(Authority: 29 U.S.C. 3272(11))

Sec.  463.36  What are the required components of an integrated 
education and training program funded under title II?

    An integrated education and training program must include three 
components:
    (a) Adult education and literacy activities as described in Sec.  
463.30.
    (b) Workforce preparation activities as described in Sec.  463.34.
    (c) Workforce training for a specific occupation or occupational 
cluster which can be any one of the training services defined in 
section 134(c)(3)(D) of the Act.

(Authority: 29 U.S.C. 3272, 3174)

Sec.  463.37  How does a program providing integrated education and 
training under title II meet the requirement that the three required 
components be ``integrated''?

    In order to meet the requirement that the adult education and 
literacy activities, workforce preparation activities, and workforce 
training be integrated, services must be provided concurrently and 
contextually such that--
    (a) Within the overall scope of a particular integrated education 
and training program, the adult education and literacy activities, 
workforce preparation activities, and workforce training:
    (1) Are instructionally balanced proportionally across the three 
components, particularly with respect to improving reading, writing, 
mathematics, and English proficiency of eligible individuals;
    (2) Occur simultaneously; and
    (3) Use occupationally relevant instructional materials.
    (b) The integrated education and training program has a single set 
of learning objectives that identifies specific adult education 
content, workforce preparation activities, and workforce training 
competencies, and the program activities are organized to function 
cooperatively.

[[Page 20986]]


(Authority: 29 U.S.C. 3272)

Sec.  463.38  How does a program providing integrated education and 
training under title II meet the requirement that the integrated 
education and training program be ``for the purpose of educational and 
career advancement''?

    A provider meets the requirement that the integrated education and 
training program provided is for the purpose of educational and career 
advancement if:
    (a) The adult education component of the program is aligned with 
the State's content standards for adult education as described in the 
State's Unified or Combined State Plan; and
    (b) The integrated education and training program is part of a 
career pathway.

(Authority: 29 U.S.C. 3272, 3112)

Subpart E [RESERVED]

Subpart F--What are Programs for Corrections Education and the 
Education of Other Institutionalized Individuals?


Sec.  463.60  What are programs for corrections education and the 
education of other institutionalized individuals?

    (a) Authorized under section 225 of the Act, programs for 
corrections education and the education of other institutionalized 
individuals require each eligible agency to carry out corrections 
education and education for other institutionalized individuals using 
funds provided under section 222(a)(1) of the Act.
    (b) The funds described in subsection (a) must be used for the cost 
of educational programs for criminal offenders in correctional 
institutions and other institutionalized individuals, including 
academic programs for--
    (1) Adult education and literacy activities;
    (2) Special education, as determined by the eligible agency;
    (3) Secondary school credit;
    (4) Integrated education and training;
    (5) Career pathways;
    (6) Concurrent enrollment;
    (7) Peer tutoring; and
    (8) Transition to re-entry initiatives and other post-release-
services with the goal of reducing recidivism.

(Authority: 29 U.S.C. 3302, 3305)

Sec.  463.61  How does the eligible agency award funds to eligible 
providers under programs for corrections education and the education of 
other institutionalized individuals?

    (a) States may award up to 20 percent of the 82.5 percent of the 
funds made available by the Secretary for local grants and contracts 
under section 231 of the Act for programs for corrections education and 
the education of other institutionalized individuals.
    (b) The State must make awards to eligible providers in accordance 
with subpart C of this part.

(Authority: 29 U.S.C. 3302, 3321)

Sec.  463.62  What is the priority for programs that receive funding 
through programs for corrections education and the education of other 
institutionalized individuals?

    Each eligible agency using funds provided under programs for 
corrections education and the education of other institutionalized 
individuals to carry out a program for criminal offenders within a 
correctional institution must give priority to programs serving 
individuals who are likely to leave the correctional institution within 
five years of participation in the program.

(Authority: 29 U.S.C. 3305)

Sec.  463.63  How may funds under programs for corrections education 
and the education of other institutionalized individuals be used to 
support transition to re-entry initiatives and other post-release 
services with the goal of reducing recidivism?

    Funds under programs for corrections education and the education of 
other institutionalized individuals may be used to support educational 
programs for transition to re-entry initiatives and other post-release 
services with the goal of reducing recidivism. Such use of funds may 
include educational counseling or case work to support incarcerated 
individuals' transition to re-entry initiatives and other post-release 
services. Examples of allowable uses of funds include assisting 
incarcerated individuals to develop plans for post-release education 
program participation, assisting students in identifying and applying 
for participation in post-release programs, and performing direct 
outreach to community-based program providers on behalf of re-entering 
students. Such funds may not be used for costs for participation in 
post-release programs or services.

(Authority: 29 U.S.C. 3305)

Subpart G--What Is the Integrated English Literacy and Civics 
Education Program?


Sec.  463.70  What is the Integrated English Literacy and Civics 
Education program?

    (a) The Integrated English Literacy and Civics Education program 
refers to the use of funds provided under section 243 of the Act for 
education services for English language learners who are adults, 
including professionals with degrees and credentials in their native 
countries.
    (b) The Integrated English Literacy and Civics Education program 
delivers educational services as described in Sec.  463.33.
    (c) Such educational services must be delivered in combination with 
integrated education and training services as described in Sec.  
463.36.

(Authority: 29 U.S.C. 3272, 3333)

Sec.  463.71  How does the Secretary make an award under the Integrated 
English Literacy and Civics Education program?

    (a) The Secretary awards grants under the Integrated English 
Literacy and Civics Education program to States in accordance with this 
section.
    (b) The Secretary allocates funds to States following the formula 
described in section 243(b) of the Act:
    (1) Sixty-five percent is allocated on the basis of a State's need 
for integrated English literacy and civics education, as determined by 
calculating each State's share of a 10-year average of the data of the 
Office of Immigration Statistics of the Department of Homeland Security 
for immigrants admitted for legal permanent residence for the 10 most 
recent years; and
    (2) Thirty-five percent is allocated on the basis of whether the 
State experienced growth, as measured by the average of the three most 
recent years for which the data of the Office of Immigration Statistics 
of the Department of Homeland Security for immigrants admitted for 
legal permanent residence are available.
    (3) No State will receive an allotment less than $60,000.

(Authority: 29 U.S.C. 3333)

Sec.  463.72  How does the eligible agency award funds to eligible 
providers for the Integrated English Literacy and Civics Education 
program?

    States must award funds for the Integrated English Literacy and 
Civics Education program to eligible providers in accordance with 
subpart C of this part.

(Authority: 29 U.S.C. 3321)

Sec.  463.73  What are the requirements for eligible providers that 
receive funding through the Integrated English Literacy and Civics 
Education program?

    Eligible providers receiving funds through the Integrated English 
Literacy and Civics Education program must provide services that--
    (a) Include instruction in literacy and English language 
acquisition and instruction on the rights and responsibilities of 
citizenship and civic participation.
    (b) Are in combination with integrated education and training.

[[Page 20987]]

    (c) Are designed to:
    (1) Prepare adults who are English language learners for, and place 
such adults in, unsubsidized employment in in-demand industries and 
occupations that lead to economic self-sufficiency; and
    (2) Integrate with the local workforce development system and its 
functions to carry out the activities of the program.

(Authority: 29 U.S.C. 3272, 3333)

Sec.  463.74  How does an eligible provider that receives funds through 
the Integrated English Literacy and Civics Education program meet the 
requirement to provide services in combination with integrated 
education and training?

    An eligible provider that receives funds through the Integrated 
English Literacy and Civics Education program can meet the requirement 
to provide services in combination with integrated education and 
training by providing:
    (a) Integrated English literacy and civics education activities as 
described in subpart D and integrated education and training as 
described in subpart D to eligible individuals as defined in this 
subpart; or
    (b) Integrated English literacy and civics education activities as 
described in subpart D to eligible individuals as described in this 
subpart and co-enrolling participants in integrated education and 
training programs provided within the local or regional workforce 
development area.

(Authority: 29 U.S.C. 3333, 3121, 3122, 3123)

Sec.  463.75  Who is eligible to receive education services through the 
Integrated English Literacy and Civics Education program?

    Individuals who otherwise meet the definition of ``eligible 
individual'' and are English language learners, including professionals 
with degrees and credentials obtained in their native countries, may 
receive Integrated English Literacy and Civics Education services.

(Authority: 29 U.S.C. 3272)

Subparts H-K--[RESERVED]

PART 472--[REMOVED AND RESERVED]

0
18. Remove and reserve part 472.

PART 477--[REMOVED AND RESERVED]

0
19. Remove and reserve part 477.

PART 489--[REMOVED AND RESERVED]

0
20. Remove and reserve part 489.

PART 490--[REMOVED AND RESERVED]

0
21. Remove and reserve part 490.
[FR Doc. 2015-05540 Filed 4-2-15; 4:15 pm]
 BILLING CODE 4000-01-P


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