Federal Register / Vol. 86, No. 124 / Thursday, July 1, 2021 / Rules and Regulations 34943 

§ 295.5 [Amended] 

■ 2. In § 295.5(d), remove ‘‘§ 234.1’’ and 

add in its place ‘‘§ 234.31’’. 

Dated: June 17, 2021. 

By Authority of the Board. 

Stephanie Hillyard, 

Secretary to the Board. 

[FR Doc. 2021–13231 Filed 6–30–21; 8:45 am] 

BILLING CODE P 

DEPARTMENT OF HOUSING AND 

URBAN DEVELOPMENT 

24 CFR Part 92 

[Docket No. FR–6249–C–03] 

RIN 2529–AB01 

Restoring Affirmatively Furthering Fair 

Housing Definitions and Certifications 

AGENCY: Office of General Counsel, 

HUD. 

ACTION: Interim final rule; correction. 

SUMMARY: On June 23, 2021, HUD 

published a document to correct an 

amendatory instruction appearing in its 

Restoring Affirmatively Furthering Fair 

Housing Definitions and Certifications 

interim final rule, which published on 

June 10, 2021. In that document, HUD 

incorrectly referenced the Federal 

Register publication date for its interim 

final rule. For the convenience of the 

public, this document republishes 

HUD’s June 23, 2021, correction with 

the corrected publication dates. 

DATES: Effective July 31, 2021. 

FOR FURTHER INFORMATION CONTACT: 

Aaron Santa Anna, Associate General 

Counsel for Legislation and Regulations, 

Department of Housing and Urban 

Development, 451 7th Street SW, Room 

10238, Washington, DC 20410; 

telephone number 202–708–1793 (this 

is not a toll-free number). Persons with 

hearing or speech impairments may 

access this number through TTY by 

calling the toll-free Federal Relay at 

800–877–8339 (this is a toll-free 

number). 

SUPPLEMENTARY INFORMATION: On June 

10, 2021 (86 FR 30779), HUD published 

its Restoring Affirmatively Furthering 

Fair Housing Definitions and 

Certifications interim final rule. 

Following publication, the Federal 

Register alerted HUD to an error in the 

amendatory instruction for revisions to 

24 CFR 92.508. Specifically, the 

amendatory instruction directed that 

paragraph (a)(7)(i)(C) be revised, 

however, the revision being made by the 

interim final rule is to paragraph 

(a)(7)(i)(B). This document corrects the 

amendatory instructions for 24 CFR 

92.508 to reflect the correct paragraph 

being revised. 

Correction 

In FR Doc. 2021–12114 appearing on 

page 30779 in the Federal Register on 

June 10, 2021, the following correction 

is made: 

§ 92.508 [Corrected] 

■ On page 30792, in the second column, 

after the title for part 92, in amendment 

11, the instruction ‘‘Amend § 92.508 by 

revising paragraph (a)(7)(i)(C) to read as 

follows:’’ is corrected to read ‘‘Amend 

§ 92.508 by revising paragraph 

(a)(7)(i)(B) to read as follows:’’ 

Aaron Santa Anna, 

Associate General Counsel for Legislation and 

Regulations. 

[FR Doc. 2021–14011 Filed 6–30–21; 8:45 am] 

BILLING CODE 4210–67–P 

DEPARTMENT OF THE INTERIOR 

Bureau of Indian Affairs 

25 CFR Part 48 

[212A2100DD; AAKC001030; 

A0A501010.999900] 

RIN 1076–AF55 

Use of Bureau-Operated Schools by 

Third Parties Under Lease Agreements 

and Fundraising Activity by BureauOperated School Personnel 

AGENCY: Bureau of Indian Education, 

Interior. 

ACTION: Final rule. 

SUMMARY: Congress authorized the 

Director of the Bureau of Indian 

Education (BIE or Bureau) to enter into 

agreements with third parties to lease 

the land or facilities of a Bureauoperated school in exchange for funding 

that benefits the school. This final rule 

establishes standards for the appropriate 

use of lands and facilities under a lease 

agreement, provisions for establishment 

and administration of mechanisms for 

the acceptance of consideration for the 

use and benefit of a school, 

accountability standards to ensure 

ethical conduct, and provisions for 

monitoring the amount and terms of 

consideration received, the manner in 

which the consideration is used, and 

any results achieved by such use. This 

final rule also establishes standards to 

implement authority provided by 

Congress for BIE personnel to fundraise 

on behalf of Bureau-operated schools. 

DATES: This rule takes effect on August 

2, 2021. 

FOR FURTHER INFORMATION CONTACT: 

Elizabeth Appel, Director, Office of 

Regulatory Affairs & Collaborative 

Action, (202) 273–4680; 

elizabeth.appel@bia.gov. 

SUPPLEMENTARY INFORMATION: 

I. Background 

II. Summary of Rule 

III. Responses to Comments and Changes 

From Proposed Rule 

IV. Procedural Requirements 

A. Regulatory Planning and Review (E.O. 

12866) 

B. Regulatory Flexibility Act 

C. Small Business Regulatory Enforcement 

Fairness Act 

D. Unfunded Mandates Reform Act 

E. Takings (E.O. 12630) 

F. Federalism (E.O. 13132) 

G. Civil Justice Reform (E.O. 12988) 

H. Consultation With Indian Tribes (E.O. 

13175) 

I. Paperwork Reduction Act 

J. National Environmental Policy Act 

K. Effects on the Energy Supply (E.O. 

13211) 

I. Background 

Public Law 112–74, as amended by 

Public Law 113–235 and Public Law 

114–113, authorizes the Director of BIE, 

or the Director’s designee, to enter into 

agreements with public and private 

persons and entities allowing them to 

lease the land or facilities of a Bureauoperated school in exchange for 

consideration (in the form of funds) that 

benefits the school. The head of the 

school determines the manner in which 

the consideration will be used to benefit 

the school, as long as the use is for 

school purposes otherwise authorized 

by law. Congress provided that any 

funds obtained under this authority will 

not affect or diminish appropriations for 

the operation and maintenance of 

Bureau-operated schools, and that no 

funds will be withheld from distribution 

to the budget of a school due to receipt 

of such funds. 

This public law also allows personnel 

of Bureau-operated schools to 

participate in fundraising activity for 

the benefit of a Bureau-operated school 

in their official capacity, as part of their 

official duties. 

To carry out these public law 

provisions, the Act requires the 

Secretary of the Interior to promulgate 

regulations. The Act provides that the 

regulations must include standards for 

the appropriate use of Bureau-operated 

school lands and facilities by third 

parties under a rental or lease 

agreement; provisions for the 

establishment and administration of 

mechanisms for the acceptance of 

consideration for the use and benefit of 

a school; accountability standards to 

ensure ethical conduct; and provisions 

for monitoring the amount and terms of 


khammond on DSKJM1Z7X2PROD with RULES
34944 Federal Register / Vol. 86, No. 124 / Thursday, July 1, 2021 / Rules and Regulations 

consideration received, the manner in 

which the consideration is used, and 

any results achieved by such use. 

The BIE published a proposed rule on 

October 14, 2020 (85 FR 65000) and 

received four comments, which are 

discussed later in this preamble. 

II. Summary of Rule 

This rule establishes a new Code of 

Federal Regulations (CFR) part to 

implement the leasing and fundraising 

authority that Congress granted to BIE 

under Public Law 112–74, as amended 

by Public Law 113–235 and Public Law 

114–113. The leasing provisions of this 

rule apply only to the facilities and land 

of Bureau-operated schools. This rule 

does not apply to public schools, Public 

Law 100–297 Tribally controlled grant 

schools, or Public Law 93–638 contract 

schools. This rule implements statutory 

leasing authority specific to leasing of 

Bureau-operated school facilities and 

land and is separate from the general 

statutory authority for leasing. To obtain 

approval of a lease of a Bureau-operated 

facility or land, one would need to 

comply with this new regulation, rather 

than the more generally applicable 

regulations at 25 CFR part 162. While 

the regulations at part 162 allow the 

granting of permits for use of 

Government land, the primary purpose 

of part 162 is to promote leasing of 

Indian land for housing, economic 

development, and other purposes. In 

contrast, the purpose of these new 

regulations at part 48 is to lease or rent 

Bureau-operated school facilities in 

exchange for consideration that will be 

used for school purposes. We note that 

nothing in this rule affects 25 CFR 31.2, 

which allows for use of Bureau-operated 

school facilities or land for community 

activities and adult education activities 

upon approval by the superintendent or 

officer-in-charge, where no 

consideration is received in exchange 

for the use of the facilities. The 

fundraising provisions of this rule apply 

only to employees of schools operated 

by the BIE. Subpart A of the rule sets 

forth the purpose, definitions, and other 

general provisions applicable to both 

leasing and fundraising. 

Subpart B establishes the mechanisms 

and standards by which the Bureau may 

lease Bureau-operated school facilities 

and land to third parties. The statutory 

authority for the rule’s leasing sections 

provides that the BIE Director or the 

Director’s designee is authorized to 

enter into agreements with public and 

private persons and entities that provide 

for such persons and entities to rent or 

lease the land or facilities of a Bureauoperated school in exchange for a 

consideration (in the form of funds) that 

benefits the school, as determined by 

the head of the school. Public Law 112– 

74, section 115(a)(1). The rule allows 

only the BIE Director or his or her 

designee to enter into leases, and 

defines the Director’s designee to be the 

Associate Deputy Director—BureauOperated Schools or the Associate 

Deputy Director—Navajo Schools. 

While most lease negotiations will occur 

at the school level, having someone at 

the Associate Deputy Director level 

make the ultimate determination 

whether to enter into a lease provides an 

appropriate level of oversight. The rule 

is written to provide a basic framework 

for leasing of Bureau-operated school 

facilities without being overly 

prescriptive so that it can accommodate 

a wide range of leasing circumstances— 

everything from leasing out a school 

gymnasium for a few hours to entering 

into a commercial lease of Bureauoperated school facility land to a 

billboard company. Accordingly, the 

rule sets forth the standards the BIE 

Director (or designee) will use to 

determine whether to enter into a lease. 

A primary standard for determining 

whether to enter into a lease is that the 

lease provides a net financial benefit to 

the school because the statutory 

authority for this regulation is centered 

on BIE receiving consideration in the 

form of funds that benefit the school. 

The BIE Director (or designee) will also 

consider including lease terms to 

incorporate the standards listed in 

§ 48.104. This subpart also establishes 

what provisions a lease must include, 

what actions are necessary if permanent 

improvements are to be constructed 

under the lease, and how the Bureau 

will ensure compliance with the lease. 

In accordance with the limited authority 

provided by the statute, this subpart 

provides that the Bureau may only 

accept funds (as opposed to in-kind 

consideration) as consideration for a 

lease and may only use the funds for 

school purposes. The rule also broadly 

establishes how the Director or his or 

her designee will determine what 

amount is proper for lease 

consideration. While fair market value 

is a consideration, a formal appraisal 

may not be needed in all circumstances 

(e.g., leasing out the school gym for a 

few hours) so the rule does not require 

a formal appraisal. The rule also 

establishes the mechanics for lessees to 

pay consideration and describes how 

the Bureau will process the funds. The 

rule provides the same late payment 

fees as are provided in the part 162 

provisions for leasing Indian land. For 

oversight purposes, the rule requires 

Bureau-operated school personnel to 

report annually on any active lease to 

the Director and others, and include an 

accounting of all expenditures and 

supporting documentation showing 

expenditures were made for school 

purposes. 

Subpart C of the rule addresses 

fundraising activities by employees of 

Bureau-operated schools in their official 

capacity on behalf of those schools. 

(Nothing in this rule affects fundraising 

activities by students). The statutory 

authority for the rule’s fundraising 

sections allows BIE personnel to 

participate in a fundraising activity for 

the benefit of a Bureau-operated school 

in an official capacity as part of their 

official duties, and using the employee’s 

official title, position, and authority. 

This subpart of the rule allows 

authorized personnel to spend a 

‘‘reasonable portion’’ of his or her 

official duty time fundraising. BIE uses 

the phrase ‘‘reasonable portion’’ rather 

than specifying a number of hours or 

percentage of duty time to provide 

flexibility for different work schedules 

and fundraising activities while 

ensuring that school personnel are still 

fulfilling their work duties. The 

Director, Director’s designee, or Head of 

School would determine what 

constitutes a reasonable portion when 

they review the proposed fundraising 

activity under § 48.202 to certify that it 

complies with regulatory requirements. 

In accordance with the statute’s 

requirement for the regulations to 

establish standards to ensure ethical 

conduct, this subpart limits the types of 

fundraising an employee may conduct 

to ensure fundraising maintains the 

school’s integrity, the Bureau’s 

impartiality, and public confidence in 

the school. Certain approvals are 

required before personnel may accept a 

donation on behalf of a school as a 

mechanism for acceptance of the use of 

funds and a check to ensure standards 

are being upheld. In accordance with 

the statute’s requirement that 

fundraising activity benefit a Bureauoperated school, each Bureau-operated 

school that receives donations is 

required to report annually to the 

Director and others, including an 

accounting of all expenditures and 

supporting documentation showing 

expenditures were made for school 

purposes. 

III. Responses to Comments 

BIE received four written comment 

submissions on the proposed rule, some 

of which contained more than one 

comment. A summary of each of the 

issues raised in the comments and BIE’s 

responses follow: 


khammond on DSKJM1Z7X2PROD with RULES
Federal Register / Vol. 86, No. 124 / Thursday, July 1, 2021 / Rules and Regulations 34945 

Comment: No taxpayer dollars should 

be used for religious purposes unless 

the religion is a traditional Native 

American religion. 

Response: Funds received under Part 

48 are not taxpayer funds. The funds 

received come from leases and 

donations and can be used for school 

purposes as defined in § 48.3, which do 

not include sectarian purposes. It is the 

policy for the BIE Director, pursuant to 

25 CFR 32.4(f), to promote and respect 

the right to cultural practices and 

religious freedom for all students, 

consistent with Tribal and Alaska 

Native entities’ wishes and with the 

provisions of the American Indian 

Religious Freedom Act. 

Comment: The requirements in 

Subpart B are vague because they don’t 

list the detailed requirements that each 

possible lessee must have to obtain a 

lease. 

Response: The rule lists the detailed 

requirements for the lease at § 48.105. 

Comment: The rule should establish 

specific guidelines regarding how the 

funds are to be used to benefit the 

school or there will be confusion and 

misuse of funds. 

Response: The rule defines the 

‘‘school purposes’’ for which the funds 

may be used. See §§ 48.3 (definition of 

‘‘school purposes’’), 48.110 (regarding 

use of funds received through leasing), 

and 48.204 (regarding use of funds 

received through fundraising). 

Comment: This rule should 

incorporate other types of schools such 

as Tribal schools that are underfunded 

in locations where students may not 

have the opportunity to attend a Bureau 

school. 

Response: The statutory authority for 

this rule extends only to BIE-operated 

schools. 

Comment: We are in favor of this rule 

because of the magnitude of BIEoperated schools’ need for funds and 

that any funding received through 

leasing and fundraising will not affect or 

diminish appropriations. Since the 

intent of the rule is to increase the 

amount of funds at BIE-schools’ 

disposal in order to improve 

educational outcomes for students, it 

would be regrettable if this rule 

eventually precipitated the opposite and 

resulted in a loss of funding for these 

schools. 

Response: Congress provided that 

nothing in the statute authorizing 

leasing of and fundraising by Bureauoperated schools diminishes or 

otherwise affects the appropriation of 

funds to the budget accounts for 

operation and maintenance of Bureauoperated schools. Congress further 

provided that no funds may be withheld 

from distribution to the budget of any 

Bureau-operated school due to the 

school’s receipt of funds from leasing or 

fundraising. 

Comment: The stipulation that the 

rule does not affect 25 CFR 31.2, which 

allows BIE facilities to be used for adult 

education and community activities 

without the requirement of 

consideration, mitigates concerns that 

the rule may be detrimental to the 

community, as both adult education 

activities and communities provide 

positive outcomes, particularly in 

communities facing higher poverty 

rates, such as those in which BIEoperated schools are located. 

Response: The final rule includes the 

stipulation that this commenter 

supports. 

Comment: The requirement in section 

48.205(f) that participation in 

fundraising must be voluntary is 

important not just for teachers, but also 

students, community members and 

organizations, to ensure they are not 

punished or retaliated against for not 

participating in a fundraiser, or for 

participating in an ‘‘unsuccessful’’ 

fundraiser. 

Response: The final rule includes the 

requirement that this commenter 

supports. 

Comment: A major advantage to this 

rule is that it improves these schools’ 

access to much-needed funds without 

having to increase government spending 

or divert government funding from other 

important purposes. Although BIE 

schools receive more funding per pupil 

than the average U.S. public school, the 

financial need for this rule is still 

evident due to the unique challenges 

and higher costs such schools face. The 

funding schools can obtain from 

fundraising would help make necessary 

improvements to the quality of 

education for all its students; however, 

the GAO, in its 2014 report, specified 

concerns regarding BIE schools’ ability 

to manage funds efficiently and 

ethically and, in 2017, added BIE to its 

High Risk List for agencies and 

programs vulnerable to mismanagement. 

A prudent solution would be to resolve 

existing issues to prevent poor 

stewardship of taxpayer dollars. Ideally, 

BIE would first demonstrate an 

improved ability to handle its finances 

before entrusting BIE schools with 

additional funds. 

Response: The rule provides that the 

schools must report on the use of funds 

received through leasing (see § 48.115) 

and fundraising (§ 48.208). 

Comment: The condition at section 

48.206 requiring donations equal to or 

exceeding $5,000 be approved by the 

Director’s designee could cause school 

administrators to discourage donations 

exceeding this threshold in order to 

minimize bureaucratic approvals, or 

misrepresent the true dollar amount of 

the donation while ‘‘pocketing’’ 

amounts in excess of the threshold. 

Response: Criminal statutes prohibit 

employees from ‘‘pocketing’’ funds. 

Comment: Listing $5,000 as a 

threshold will eventually produce 

considerably different results over time 

due to inflation; instead, add a 

stipulation that the exact dollar amount 

is to be equivalent of the real value as 

of 2021. There are free, fast, userfriendly inflation calculators on the 

internet that would assist in adjusting 

the value based on inflation in 

successive years. 

Response: BIE will reevaluate this 

monetary threshold after it obtains 

experience in implementing this 

regulation. 

Comment: The rule’s requirement at 

section 48.104 that the Director must 

determine that any proposed leases 

must not interfere with school activities 

or compromise school safety should be 

supported by a reporting mechanism 

between the impacted school’s faculty, 

staff, and students and the Director in 

case an interference occurs during the 

lease term. Those individuals witness 

the day-to-day operations of the school 

and will identify whether a lease results 

in unanticipated negative effects on 

schooling. There should be a procedure 

to allow them to file complaints with 

the Director so the Director fully 

understands the effects of the actual 

implementation of a given lease and can 

take appropriate actions as needed. 

Response: The Head of the School, in 

consultation with the school board or 

board of regents, certifies that the lease 

will not interfere with existing or 

planned school activities prior to the 

Director entering into the lease. Each 

individual lease will have provisions 

specific to the activities that the lessee 

will conduct under the lease to ensure 

that lease activities will not interfere 

with school activities. Failure to comply 

with lease terms would be addressable 

under §§ 48.116 and 48.117. 

Comment: It seems that Native 

American children with exceptionalities 

are or may be denied the protections of 

the Rehabilitation Act of 1973 and other 

laws that empower them to achieve 

education-related goals. Many living on 

reservations are trapped in poverty, 

inadequate housing, alcoholism, drug 

abuse, and exceptionally high levels of 

unemployment, and children living on 

the reservation have two options: obtain 

an education to end the vicious cycle or 

remain trapped. Without the 

opportunity to obtain an education 


khammond on DSKJM1Z7X2PROD with RULES
34946 Federal Register / Vol. 86, No. 124 / Thursday, July 1, 2021 / Rules and Regulations 

because you are, by default, excluded 

from the classroom because of your 

exceptionality. It is imperative that 

children attending public schools on 

Indian reservations be granted the 

opportunity to obtain an education, 

regardless of whether they have an 

exceptionality. 

Response: This comment is not 

directly relevant to this rulemaking, but 

BIE has considered it in its 

implementation of Section 504 of the 

Rehabilitation Act of 1973. 

IV. Changes to Proposed Rule 

The final rule makes three changes to 

the proposed rule for clarity and to 

better define BIE officials’ roles and 

responsibilities: 

• Revises the definition of ‘‘Director’s 

designee’’ to mean only the Associate 

Deputy Director (deleting the 

‘‘Education Program Administrator’’); 

• Adds in § 48.202 that the Head of 

the School, in addition to the Director 

or Director’s designee, is one of the 

individuals authorized to approve 

fundraising in advance; and 

• Separates out the discussion of how 

a Bureau-operated school processes 

donated funds from § 48.207, regarding 

how donations may be used, to a new 

§ 48.208. 

V. Procedural Requirements 

A. Regulatory Planning and Review 

(E.O. 12866) 

Executive Order (E.O.) 12866 provides 

that the Office of Information and 

Regulatory Affairs (OIRA) at the Office 

of Management and Budget (OMB) will 

review all significant rules. OIRA has 

determined that this rule is not 

significant. 

E.O. 13563 reaffirms the principles of 

E.O. 12866 while calling for 

improvements in the Nation’s regulatory 

system to promote predictability, to 

reduce uncertainty, and to use the best, 

most innovative, and least burdensome 

tools for achieving regulatory ends. The 

E.O. directs agencies to consider 

regulatory approaches that reduce 

burdens and maintain flexibility and 

freedom of choice for the public where 

these approaches are relevant, feasible, 

and consistent with regulatory 

objectives. E.O. 13563 emphasizes 

further that regulations must be based 

on the best available science and that 

the rulemaking process must allow for 

public participation and an open 

exchange of ideas. We have developed 

this rule in a manner consistent with 

these requirements. 

B. Regulatory Flexibility Act 

The Department of the Interior 

certifies that this document will not 

have a significant economic effect on a 

substantial number of small entities 

under the Regulatory Flexibility Act (5 

U.S.C. 601 et seq.). It does not change 

current funding requirements and any 

economic effects on small entities 

would be fees charged for the use of the 

facilities, which must be tied to either 

fair market value or the costs to the 

Bureau of the lease and would not have 

a significant economic effect on the 

small entities. 

C. Small Business Regulatory 

Enforcement Fairness Act 

This rule is not a major rule under 5 

U.S.C. 804(2), the Small Business 

Regulatory Enforcement Fairness Act. 

This rule: 

(a) Will not have an annual effect on 

the economy of $100 million or more. 

(b) Will not cause a major increase in 

costs or prices for consumers, 

individual industries, Federal, State, or 

local government agencies, or 

geographic regions. 

(c) Will not have significant adverse 

effects on competition, employment, 

investment, productivity, innovation, or 

the ability of the U.S.-based enterprises 

to compete with foreign-based 

enterprises. 

D. Unfunded Mandates Reform Act 

This rule does not impose an 

unfunded mandate on State, local, or 

Tribal governments or the private sector 

of more than $100 million per year. The 

rule does not have a significant or 

unique effect on State, local, or Tribal 

governments or the private sector. A 

statement containing the information 

required by the Unfunded Mandates 

Reform Act (2 U.S.C. 1531 et seq.) is not 

required. 

E. Takings (E.O. 12630) 

This rule does not affect a taking of 

private property or otherwise have 

taking implications under Executive 

Order 12630. A takings implication 

assessment is not required. 

F. Federalism (E.O. 13132) 

Under the criteria in section 1 of 

Executive Order 13132, this rule does 

not have sufficient federalism 

implications to warrant the preparation 

of a federalism summary impact 

statement. A federalism summary 

impact statement is not required. 

G. Civil Justice Reform (E.O. 12988) 

This rule complies with the 

requirements of Executive Order 12988. 

Specifically, this rule: 

(a) Meets the criteria of section 3(a) 

requiring that all regulations be 

reviewed to eliminate errors and 

ambiguity and be written to minimize 

litigation; and 

(b) Meets the criteria of section 3(b)(2) 

requiring that all regulations be written 

in clear language and contain clear legal 

standards. 

H. Consultation With Indian Tribes 

(E.O. 13175) 

The Department of the Interior strives 

to strengthen its government-togovernment relationship with Indian 

Tribes through a commitment to 

consultation with Indian Tribes and 

recognition of their right to selfgovernance and Tribal sovereignty. We 

have evaluated this rule under the 

Department’s consultation policy and 

under the criteria in Executive Order 

13175 and have identified substantial 

direct effects on federally recognized 

Indian Tribes that will result from this 

rulemaking. The Department 

acknowledges that Tribes with children 

attending Bureau-operated schools have 

an interest in this rule because it 

provides for consideration for the 

leasing of Bureau-operated schools and 

fundraising standards for employees of 

Bureau-operated schools. As such, the 

Department engaged Tribal government 

representatives by distributing a letter, 

dated June 19, 2014, with a copy of the 

draft rule and requesting comment on 

the draft rule by July 31, 2014. The 

Department also published a proposed 

rule on June 21, 2016 (81 FR 40218) and 

hosted a listening session and two 

teleconference consultations on the rule, 

but received no substantive comments. 

The Department hosted an additional 

consultation November 13, 2020, but 

received no substantive comments. 

I. Paperwork Reduction Act 

This rule contains new information 

collections. All information collections 

require approval under the Paperwork 

Reduction Act of 1995 (44 U.S.C. 3501 

et seq.). We may not conduct or sponsor 

and you are not required to respond to 

a collection of information unless it 

displays a currently valid Office of 

Management and Budget (OMB) control 

number. The Department is seeking 

approval of a new information 

collection, as follows. 

Brief Description of Collection: The 

Bureau of Indian Education (BIE) is 

establishing standards for the 

appropriate use of lands and facilities 

by third parties. These standards 

address the following: The execution of 

lease agreements; the establishment and 

administration of mechanisms for the 

acceptance of consideration for the use 

and benefit of a Bureau-operated school; 

the assurance of ethical conduct; and 

monitoring the amount and terms of 


khammond on DSKJM1Z7X2PROD with RULES
Federal Register / Vol. 86, No. 124 / Thursday, July 1, 2021 / Rules and Regulations 34947 

consideration received, the manner in 

which the consideration is used, and 

any results achieved by such use. The 

paperwork burden associated with the 

rule results from lease provisions; lease 

violations; and assignments, subleases, 

or mortgages of leases. 

Title: Use of Bureau-Operated Schools 

by Third Parties. 

OMB Control Number: 1076–0187. 

Form Number: None. 

Type of Review: New collection. 

Respondents/Affected Public: 

Individuals and Private Sector. 

Total Estimated Number of Annual 

Respondents: 17. 

Total Estimated Number of Annual 

Responses: 24. 

Estimated Completion Time per 

Response: One to three hours. 

Total Estimated Number of Annual 

Burden Hours: 68 hours. 

Respondents’ Obligation: Required to 

obtain a benefit. 

Frequency of Response: Annually. 

Total Estimated Annual Non-Hour 

Burden Cost: $0. 

CFR cite Description Number 

respondents 

Annual 

responses 

Burden 

hours per 

response 

Total 

annual 

burden 

hours 

48.105 ............ Provisions of leases (businesses) ...................................... 10 ................... 10 3 30 

48.105 ............ Provisions of leases (individuals) ....................................... 2 ..................... 2 3 6 

48.105 ............ Provisions of leases (governments) ................................... 5 ..................... 5 3 15 

48.106 ............ Covered improvements under lease (businesses) ............. 2 (subset) ....... 2 3 6 

48.106 ............ Covered improvements under lease (governments) .......... 1 (subset) ....... 1 3 3 

48.117 ............ Violations of leases (businesses) ....................................... 1 (subset) ....... 1 1 1 

48.117 ............ Violations of leases (individuals) ........................................ 1 (subset) ....... 1 1 1 

48.119 ............ Assignments, subleases, and mortgages of leases (businesses).1 (subset) ....... 1 3 3 

48.119 ............ Assignments, subleases, and mortgages of leases (individuals).1 (subset) ....... 1 3 3 

Total ........ ............................................................................................. 17 ................... 24 N/A 68 

OMB Control Number: 1090–0009. 

Title: Donor Certification Form (DI– 

3680). 

Brief Description of Collection: This 

information will provide Department 

staff with the basis for beginning the 

evaluation as to whether the Department 

will accept the proposed donation. The 

authorized employee will receive the 

donor certification form in advance of 

accepting the proposed donation where 

the donation is valued at $25,000 or 

more. The employee will then review 

the totality of circumstances 

surrounding the proposed donation to 

determine whether the Department can 

accept the donation and maintain its 

integrity, impartiality, and public 

confidence. We expect to receive 25 

responses to this information collection 

annually. The burden associated with 

this information collection is already 

reflected in the approval of OMB 

Control Number 1090–0009. 

As part of our continuing effort to 

reduce paperwork and respondent 

burdens, we invite the public and other 

Federal agencies to comment on any 

aspect of this information collection, 

including: 

(1) Whether or not the collection of 

information is necessary for the proper 

performance of the functions of the 

agency, including whether or not the 

information will have practical utility; 

(2) The accuracy of our estimate of the 

burden for this collection of 

information, including the validity of 

the methodology and assumptions used; 

(3) Ways to enhance the quality, 

utility, and clarity of the information to 

be collected; and 

(4) Ways to minimize the burden of 

the collection of information on those 

who are to respond, including through 

the use of appropriate automated, 

electronic, mechanical, or other 

technological collection techniques or 

other forms of information technology, 

e.g., permitting electronic submission of 

response. 

Written comments and 

recommendations for the information 

collection should be sent within 30 days 

of publication of this notice to 

www.reginfo.gov/public/do/PRAMain. 

Find this particular information 

collection by selecting ‘‘Currently under 

30-day Review—Open for Public 

Comments’’ or by using the search 

function. Please provide a copy of your 

comments to consultation@bia.gov. 

Please reference OMB Control Number 

1076–0187 in the subject line of your 

comments.’’ 

J. National Environmental Policy Act 

This rule does not constitute a major 

Federal action significantly affecting the 

quality of the human environment. A 

detailed statement under the National 

Environmental Policy Act of 1969 

(NEPA) is not required because the 

environmental effects of this rule are too 

speculative to lend themselves to 

meaningful analysis and will later be 

subject to the NEPA process, unless 

covered by a categorical exclusion. (For 

further information see 43 CFR 

46.210(i)). We have also determined that 

the rule does not involve any of the 

extraordinary circumstances listed in 43 

CFR 46.215 that would require further 

analysis under NEPA. 

K. Effects on the Energy Supply (E.O. 

13211) 

This rule is not a significant energy 

action under the definition in Executive 

Order 13211. A Statement of Energy 

Effects is not required. 

List of Subjects in 25 CFR Part 48 

Educational facilities, Indianseducation. 

■ For the reasons given in the preamble, 

the Department of the Interior amends 

25 CFR chapter 1, subchapter E, by 

adding part 48 to read as follows: 

PART 48—LEASES OF LAND OR 

FACILITIES OF BUREAU-OPERATED 

SCHOOLS AND FUNDRAISING 

ACTIVITIES AT BUREAU-OPERATED 

SCHOOLS 

Subpart A—General Provisions 

Sec. 

48.1 What is the purpose of this part? 

48.2 What is the scope of this part? 

48.3 What definitions apply to terms in this 

part? 

48.4 What accounting standards will the 

Bureau use in monitoring the receipt, 

holding, and use of funds? 

48.5 How does the Paperwork Reduction 

Act affect this part? 


khammond on DSKJM1Z7X2PROD with RULES
34948 Federal Register / Vol. 86, No. 124 / Thursday, July 1, 2021 / Rules and Regulations 

Subpart B—Leasing of Bureau-operated 

Facilities 

48.101 Who may enter into a lease on 

behalf of a Bureau-operated school? 

48.102 With whom may the Director enter 

into a lease? 

48.103 What facilities may be leased? 

48.104 What standards will the Director use 

in determining whether to enter into a 

lease? 

48.105 What provisions must a lease 

contain? 

48.106 May a lessee construct permanent 

improvements under a lease? 

48.107 What consideration may a Bureauoperated school accept in exchange for a 

lease? 

48.108 How will the Bureau determine 

appropriate consideration for a lease? 

48.109 Who may use the funds? 

48.110 For what purposes may a Bureauoperated school use the funds? 

48.111 How does a lessee pay the Bureauoperated school under a lease? 

48.112 How are lease payments processed? 

48.113 Will late payment charges or special 

fees apply to delinquent lease payments? 

48.114 How long will the funds be 

available? 

48.115 How will the Bureau monitor the 

results achieved by the use of funds 

received from leases? 

48.116 Who may investigate compliance 

with a lease? 

48.117 What will the Bureau do about a 

violation of a lease? 

48.118 What will the Bureau do if a lessee 

does not cure a lease violation on time? 

48.119 May a lease be assigned, subleased, 

or mortgaged? 

Subpart C—Fundraising Activities 

48.201 To whom does this subpart apply? 

48.202 May employees fundraise? 

48.203 How much time may employees 

spend fundraising? 

48.204 For what school purposes may 

employees fundraise? 

48.205 What are the limitations on 

fundraising? 

48.206 What approvals are necessary to 

accept a donation? 

48.207 How may the donations solicited 

under this subpart be used? 

48.208 How does a Bureau-operated school 

process donated funds? 

48.209 How must the Bureau-operated 

school report donations? 

Authority: 5 U.S.C. 301; 25 U.S.C. 2, 9; 

Pub. L. 112–74; Pub. L. 113–235; Pub. L. 

114–113. 

Subpart A—General Provisions 

§ 48.1 What is the purpose of this part? 

(a) The purpose of this part is to set 

forth processes and procedures to: 

(1) Implement authorization for the 

Director or his or her designee to lease 

or rent Bureau-operated school facilities 

in exchange for consideration in the 

form of funds; 

(2) Establish mechanisms and 

standards for leasing or renting of 

Bureau-operated facilities, and 

management and use of the funds 

received as consideration; 

(3) Describe allowable fundraising 

activities by the employees of Bureauoperated schools; 

(4) Set accountability standards to 

ensure ethical conduct; and 

(5) Establish provisions for 

monitoring the amount and terms of 

consideration received, the manner in 

which the consideration is used, and 

any results achieved by such use. 

(b) Nothing in this part affects: 

(1) 25 CFR 31.2, allowing for use of 

Federal Indian school facilities for 

community activities and adult 

education activities upon approval by 

the superintendent or officer-in-charge, 

where no consideration is received in 

exchange for the use of the facilities; 

(2) 25 CFR 31.7 and 36.43(g), 

establishing guidelines for student 

fundraising; or 

(3) The implementing regulations for 

the Federal Employees Quarters 

Facilities Act, 5 U.S.C. 5911, at 41 CFR 

part 114–51 and policies at 

Departmental Manual part 400, chapter 

3; or 

(4) The use of Bureau-operated school 

facilities or lands by other Federal 

agencies so long as the use is 

memorialized in a written agreement 

between the Bureau and the other 

Federal agency. 

§ 48.2 What is the scope of this part? 

The leasing provisions of this part 

apply only to facilities of schools 

operated by the Bureau and the 

fundraising provisions of this part apply 

only to employees of schools operated 

by the Bureau. This part does not apply 

to public schools, Public Law 100–297 

Tribally controlled schools, or Public 

Law 93–638 contract or grant schools. 

§ 48.3 What definitions apply to terms in 

this part? 

Assistant Secretary means the 

Assistant Secretary—Indian Affairs or 

his or her designee. 

Bureau means the Bureau of Indian 

Education. 

Bureau-operated school means a day 

or boarding school, a dormitory for 

students attending a school other than a 

Bureau school, or an institution of 

higher learning and associated facilities 

operated by the Bureau. This term does 

not include public schools, Public Law 

100–297 Tribally controlled schools, or 

Public Law 93–638 contract or grant 

schools. 

Construction means construction of 

new facilities, modification, or 

alteration of existing grounds or 

building structures. 

Days means calendar days unless 

otherwise specified. 

Director means the Director, Bureau of 

Indian Education. 

Director’s designee or designee means 

the Associate Deputy Director—Navajo 

Schools or Associate Deputy Director— 

Bureau-Operated Schools. 

Department means the Department of 

the Interior. 

Donation means something of value 

(e.g., funds, land, personal property) 

received from a non-Federal source 

without consideration or an exchange of 

value. 

Employee means an employee of the 

Bureau working at a Bureau-operated 

school. 

Facilities means land or facilities 

authorized for use by a Bureau-operated 

school. 

Funds means money. 

Fundraising means requesting 

donations, selling items, or providing a 

service, activity, or event to raise funds, 

except that writing a grant proposal to 

secure resources to support school 

purposes is not fundraising. Fundraising 

does not include requests for donated 

supplies, materials, in-kind services, or 

funds (e.g., fees for school activities) 

that schools traditionally require or 

request parents and guardians of 

students to provide. 

Head of the School means the 

Principal, President, School Supervisor, 

Residential Life Director, 

Superintendent of the School, or 

equivalent head of a Bureau-operated 

school. 

Lease means a written contract or 

rental agreement executed in 

accordance with this part, granting the 

possession and use of facilities at a 

Bureau-operated school to a private or 

public person or entity in return for 

funds. 

Private person or entity means an 

individual who is not acting on behalf 

of a public person or entity and 

includes, but is not limited to, private 

companies, nonprofit organizations and 

any other entity not included in the 

definition of public person or entity. 

Public person or entity means a State, 

local, Federal, or Tribal governmental 

agency or unit thereof. 

School purposes means lawful 

activities and purchases for the benefit 

of students and school operations 

including, but not limited to: Academic, 

residential, and extra-curricular 

programs during or outside of the 

normal school day and year; books, 

supplies or equipment for school use; 

building construction, maintenance 

and/or operations; landscape 

construction, modifications, or 

maintenance on the school grounds. 


khammond on DSKJM1Z7X2PROD with RULES
Federal Register / Vol. 86, No. 124 / Thursday, July 1, 2021 / Rules and Regulations 34949 

§ 48.4 What accounting standards will the 

Bureau use in monitoring the receipt, 

holding, and use of funds? 

The Bureau will use applicable 

Federal financial accounting rules in 

monitoring the receipt, holding, and use 

of funds. 

§ 48.5 How does the Paperwork Reduction 

Act affect this part? 

The collections of information in this 

part have been approved by the Office 

of Management and Budget under 44 

U.S.C. 3501 et seq. and assigned OMB 

Control Number 1076–NEW and OMB 

Control Number 1090–0009. Response is 

required to obtain a benefit. A Federal 

agency may not conduct or sponsor, and 

you are not required to respond to, a 

collection of information unless it 

displays a currently valid OMB Control 

Number. 

Subpart B—Leasing of Bureauoperated Facilities 

§ 48.101 Who may enter into a lease on 

behalf of a Bureau-operated school? 

Only the Director or the Director’s 

designee may enter into leases. 

§ 48.102 With whom may the Director enter 

into a lease? 

The Director or designee may lease to 

public or private persons or entities who 

meet the requirements of this part that 

are applicable to leasing activities. 

§ 48.103 What facilities may be leased? 

Any portion of a Bureau-operated 

school facility may be leased as long as 

the lease does not interfere with the 

normal operations of the Bureauoperated school, student body, or staff, 

and otherwise meets applicable 

requirements of this part. 

§ 48.104 What standards will the Director 

use in determining whether to enter into a 

lease? 

(a) The Director or designee will make 

the final decision regarding approval of 

a proposed lease. The Director or 

designee must ensure that the lease 

provides appropriate consideration that 

benefits the school and that the Head of 

the School where facilities are being 

leased has certified, after consultation 

with the school board or board of 

regents, that the lease meets the 

standards in paragraph (b) of this 

section. 

(b) The lease must: 

(1) Comply with the mission of the 

school; 

(2) Conform to principles of good 

order and discipline; 

(3) Not interfere with existing or 

planned school activities or programs; 

(4) Not interfere with school board 

staff and/or community access to the 

school; 

(5) Not allow contact or access to 

students inconsistent with applicable 

law; 

(6) Not result in any Bureau 

commitments after the lease expires; 

and 

(7) Not compromise the safety and 

security of students and staff or damage 

facilities. 

(c) The Director’s or designee’s 

decision on a proposed lease is 

discretionary and is not subject to 

review or appeal under part 2 of this 

chapter or otherwise. 

§ 48.105 What provisions must a lease 

contain? 

(a) All leases of Bureau-operated 

school facilities must identify at a 

minimum: 

(1) The facility, or portion thereof, 

being leased; 

(2) The purpose of the lease and 

authorized uses of the leased facility; 

(3) The parties to the lease; 

(4) The term of the lease, and any 

renewal term, if applicable; 

(5) The ownership of permanent 

improvements and the responsibility for 

constructing, operating, maintaining, 

and managing permanent 

improvements, and meeting due 

diligence requirements under § 48.106; 

(6) Payment requirements and late 

payment charges, including interest; 

(7) That lessee will maintain 

insurance sufficient to cover negligence 

or intentional misconduct occurring on 

the leasehold; and 

(8) Any bonding requirements, as 

required in the discretion of the 

Director. If a performance bond is 

required, the lease must state that the 

lessee must obtain the consent of the 

surety for any legal instrument that 

directly affects their obligations and 

liabilities. 

(b) All leases of Bureau-operated 

facilities must include, at a minimum, 

the following provisions: 

(1) There must not be any unlawful 

conduct, creation of a nuisance, illegal 

activity, or negligent use or waste of the 

leased premises; 

(2) The lessee must comply with all 

applicable laws, ordinances, rules, 

regulations, and other legal 

requirements; 

(3) The Bureau has the right, at any 

reasonable time during the term of the 

lease and upon reasonable notice to 

enter the leased premises for inspection 

and to ensure compliance; and 

(4) The Bureau may, at its discretion, 

treat as a lease violation any failure by 

the lessee to cooperate with a request to 

make appropriate records, reports, or 

information available for inspection and 

duplication. 

(c) Unless the lessee would be 

prohibited by law from doing so, the 

lease must also contain the following 

provisions: 

(1) The lessee holds the United States 

harmless from any loss, liability, or 

damages resulting from the lessee’s, its 

invitees’, and licensees’ use or 

occupation of the leased facility; and 

(2) The lessee indemnifies the United 

States against all liabilities or costs 

relating to the use, handling, treatment, 

removal, storage, transportation, or 

disposal of hazardous materials, or the 

release or discharge of any hazardous 

material from the leased premises that 

occurs during the lease term, regardless 

of fault with the exception that the 

lessee is not required to indemnify the 

United States for liability or cost arising 

from the United States’ negligence or 

willful misconduct 

§ 48.106 May a lessee construct 

permanent improvements under a lease? 

(a) The lessee may construct 

permanent improvements under a lease 

of a Bureau-operated facility only if the 

lease contains the following provisions: 

(1) A description of the type and 

location of any permanent 

improvements to be constructed by the 

lessee and a general schedule for 

construction of the permanent 

improvements, including dates for 

commencement and completion of 

construction; 

(2) Specification of who owns the 

permanent improvements the lessee 

constructs during the lease term and 

specifies whether each specific 

permanent improvement the lessee 

constructs will: 

(i) Remain on the leased premises, 

upon the expiration, cancellation, or 

termination of the lease, in a condition 

satisfactory to the Director, and become 

the property of the Bureau-operated 

school; 

(ii) Be removed within a time period 

specified in the lease, at the lessee’s 

expense, with the leased premises to be 

restored as closely as possible to their 

condition before construction of the 

permanent improvements; or 

(iii) Be disposed of by other specified 

means. 

(3) Due diligence requirements that 

require the lessee to complete 

construction of any permanent 

improvements within the schedule 

specified in the lease or general 

schedule of construction, and a process 

for changing the schedule by mutual 

consent of the parties. 


khammond on DSKJM1Z7X2PROD with RULES
34950 Federal Register / Vol. 86, No. 124 / Thursday, July 1, 2021 / Rules and Regulations 

(i) If construction does not occur, or 

is not expected to be completed, within 

the time period specified in the lease, 

the lessee must provide the Director 

with an explanation of good cause as to 

the nature of any delay, the anticipated 

date of construction of facilities, and 

evidence of progress toward 

commencement of construction. 

(ii) Failure of the lessee to comply 

with the due diligence requirements of 

the lease is a violation of the lease and 

may lead to cancellation of the lease. 

(b) The lessee must prepare the 

required information and analyses, 

including information to facilitate the 

Bureau’s analysis under applicable 

environmental and cultural resource 

requirements. 

(c) The Bureau may take appropriate 

enforcement action to ensure removal of 

the permanent improvements and 

restoration of the premises at the 

lessee’s expense before or after 

expiration, termination, or cancellation 

of the lease. The Bureau may collect and 

hold the performance bond or 

alternative form of security until 

removal and restoration are completed. 

§ 48.107 What consideration may a 

Bureau-operated school accept in exchange 

for a lease? 

A Bureau-operated school may accept 

only funds as consideration for a lease. 

§ 48.108 How will the Bureau determine 

appropriate consideration for a lease? 

The Bureau will determine what 

consideration is appropriate for a lease 

by considering, at a minimum, the 

following factors: 

(a) Fair market value and the indirect 

and direct costs of the lease; and 

(b) Whether there will be a net 

financial benefit to the school. 

§ 48.109 Who may use the funds? 

The Bureau-operated school may use 

funds, including late payment charges, 

received as compensation for leasing 

that school’s facilities. 

§ 48.110 For what purposes may a Bureauoperated school use the funds? 

The Bureau-operated school must use 

the funds for school purposes. 

§ 48.111 How does a lessee pay the 

Bureau-operated school under a lease? 

A lessee must pay consideration and 

any late payment charges due under the 

lease to the Bureau by certified check, 

money order, or electronic funds 

transfer made out to the Bureau and 

containing identifying information as 

provided for in the lease. 

§ 48.112 How are lease payments 

processed? 

The Bureau will deposit all funds 

received as lease consideration or late 

payment charge into the designated 

Treasury account. Once the Bureau 

deposits the funds, the Bureau will 

work with the Bureau-operated school 

to make the funds available for school 

purposes. 

§ 48.113 Will late payment charges or 

special fees apply to delinquent lease 

payments? 

(a) Late payment charges will apply as 

specified in the lease. The failure to pay 

these amounts will be treated as a lease 

violation. 

(b) The Bureau may assess the 

following special fees to cover 

administrative costs incurred by the 

United States in the collection of the 

debt, if rent is not paid in the time and 

manner required, in addition to late 

payment charges that must be paid 

under the terms of the lease: 

TABLE 1 TO PARAGRAPH (b) 

The lessee will pay . . . For . . . 

(1) $50.00 ................................................................................................. Any dishonored check. 

(2) $15.00 ................................................................................................. Processing of each notice or demand letter. 

(3) 18 percent of balance due .................................................................. Treasury processing following referral for collection of delinquent debt. 

§ 48.114 How long will the funds be 

available? 

Funds generated under these 

regulations remain available to the 

recipient school until expended, 

notwithstanding 31 U.S.C. 3302, in 

accordance with the Bureau-operated 

school’s plan for expending the funds 

for school purposes. 

§ 48.115 How will the Bureau monitor the 

results achieved by the use of funds 

received from leases? 

The Head of the School for each 

Bureau-operated school that has active 

leases under this part must submit an 

annual report to the Director, the 

designee, and the Office of Facilities 

Management and Construction. The 

report must contain the following 

information: 

(a) A list of leases and the facilities 

covered by each lease; 

(b) An accounting of receipts from 

each lease; 

(c) An accounting of all expenditures 

and the supporting documentation 

showing that expenditures were made 

for school purposes; 

(d) A report of the benefits provided 

by the leasing program as a whole; 

(e) A certification that the terms of 

each lease were met or, if the terms of 

a lease were not met, the actions taken 

as a result of the noncompliance; and 

(f) Any unexpected expenses 

incurred. 

§ 48.116 Who may investigate compliance 

with a lease? 

The Head of the School or his or her 

designee or any Bureau employee may 

enter the leased facility at any 

reasonable time, upon reasonable 

notice, and consistent with any notice 

requirements under the lease to 

determine if the lessee is in compliance 

with the requirements of the lease. 

§ 48.117 What will the Bureau do about a 

violation of a lease? 

(a) If the Bureau determines there has 

been a violation of the conditions of a 

lease, it will promptly send the lessee 

and any surety and mortgagee a notice 

of violation, by certified mail, return 

receipt requested. 

(1) The notice of violation will advise 

the lessee that, within 10 business days 

of the receipt of a notice of violation, the 

lessee must: 

(i) Cure the violation and notify the 

Bureau in writing that the violation has 

been cured; 

(ii) Dispute the determination that a 

violation has occurred; or 

(iii) Request additional time to cure 

the violation. 

(2) The notice of violation may order 

the lessee to cease operations under the 

lease. 

(b) A lessee’s failure to pay 

compensation in the time and manner 

required by the lease is a violation of the 

lease, and the Bureau will issue a notice 

of violation in accordance with this 

section requiring the lessee to provide 

adequate proof of payment. 

(c) The lessee and its sureties will 

continue to be responsible for the 

obligations in the lease until the lease 

expires, or is terminated or cancelled. 


khammond on DSKJM1Z7X2PROD with RULES
Federal Register / Vol. 86, No. 124 / Thursday, July 1, 2021 / Rules and Regulations 34951 

§ 48.118 What will the Bureau do if a 

lessee does not cure a lease violation on 

time? 

(a) If the lessee does not cure a 

violation of a lease within the required 

time period, or provide adequate proof 

of payment as required in the notice of 

violation, the Bureau will take one or 

more of the following actions: 

(1) Cancel the lease; 

(2) Invoke other remedies available 

under the lease or applicable law, 

including collection on any available 

performance bond or, for failure to pay 

compensation, referral of the debt to the 

Department of the Treasury for 

collection; or 

(3) Grant the lessee additional time in 

which to cure the violation. 

(b) The Bureau may take action to 

recover unpaid compensation and any 

associated late payment charges under 

§ 48.113, and does not have to cancel 

the lease or give any further notice to 

the lessee before taking action to recover 

unpaid compensation. The Bureau may 

still take action to recover any unpaid 

compensation if it cancels the lease. 

(c) If the Bureau decides to cancel the 

lease, it will send the lessee and any 

surety and mortgagee a cancellation 

letter by certified mail, return receipt 

requested, within 5 business days of its 

decision. The cancellation letter will: 

(1) Explain the grounds for 

cancellation; 

(2) If applicable, notify the lessee of 

the amount of any unpaid compensation 

or late payment charges due under the 

lease; 

(3) Notify the lessee of the lessee’s 

right to appeal to the Director if the 

decision is made by the Director’s 

designee, or to the Interior Board of 

Indian Appeals if the decision is made 

by the Director, including the possibility 

that the official to whom the appeal is 

made may require the lessee to post an 

appeal bond; 

(4) Order the lessee to vacate the 

property within 31 days of the date of 

receipt of the cancellation letter, if an 

appeal is not filed by that time; and 

(5) Order the lessee to take any other 

action the Bureau deems necessary to 

protect the facility. 

(d) The Bureau may invoke any other 

remedies available under the lease, 

including collecting on any available 

performance bond. 

§ 48.119 May a lease be assigned, 

subleased, or mortgaged? 

A lessee may assign, sublease, or 

mortgage a lease only with the approval 

of the Director. 

Subpart C—Fundraising Activities 

§ 48.201 To whom does this subpart 

apply? 

This subpart applies to employees 

that fundraise for a Bureau-operated 

school. This subpart does not apply to 

students who fundraise. 

§ 48.202 May employees fundraise? 

(a) Employees may fundraise for 

school purposes as part of their official 

duties using their official title, position 

and authority, so long as: 

(1) The Director or the Director’s 

designee or the Head of the School 

approves the fundraising in advance 

and certifies that it complies with this 

subpart; and 

(2) The employees ensure the 

fundraising conforms to the 

requirements of this subpart. 

(b) Nothing in this part allows 

participation in political or other 

activities prohibited by law. 

§ 48.203 How much time may employees 

spend fundraising? 

Each authorized employee may spend 

no more than a reasonable portion of his 

or her official duty time as an employee 

in any calendar year fundraising. 

§ 48.204 For what school purposes may 

employees fundraise? 

Employees may fundraise for school 

purposes as defined in § 48.3. 

§ 48.205 What are the limitations on 

fundraising? 

(a) Fundraising may not include any 

gaming or gambling activity. 

(b) Fundraising may not violate, or 

create an appearance of violating, any 

applicable ethics statutes or regulations. 

(c) Donations from fundraising must 

maintain the integrity of the Bureauoperated school programs and 

operations, including but not limited to 

the following considerations: 

(1) The donation may not, and may 

not appear, to be an attempt to influence 

the exercise of any regulatory or other 

authority of the Bureau; 

(2) The donation may not require 

commitment of current or future 

funding that is not planned or available; 

(3) The donation must be consistent 

with, and may not otherwise 

circumvent, law, regulation, or policy; 

(4) The Bureau-operated school must 

be able to properly utilize or manage 

any donated real or personal property 

within policy, programmatic, and 

management goals; 

(5) Any conditions on the donation 

must be consistent with authorized 

school purposes and any relevant policy 

or planning documents; 

(6) The donation may not be used by 

the donor to state or imply endorsement 

by the Bureau or Bureau-operated 

school of the donor or the donor’s 

products or services; 

(7) The donation, if it consists of 

personnel or funding to hire personnel, 

must be structured such that the 

donated or funded personnel do not 

inappropriately influence any Bureau 

regulatory action or other significant 

decision. 

(d) The fundraising and donation 

must maintain the impartiality, and 

appearance of impartiality, of the 

Bureau, Bureau-operated school, and its 

employees, including but not limited to 

the following considerations: 

(1) The proposed donation may be 

only in an amount that would not 

influence or appear to influence any 

pending Bureau decision or action 

involving the donor’s interests; 

(2) There may be no actual or implied 

commitment to take an action favorable 

to the donor in exchange for the 

donation; 

(3) The donor may not obtain or 

appear to obtain special treatment 

dealing with the Bureau or Bureauoperated school. 

(e) The fundraising and donation 

must maintain public confidence in the 

Bureau and Bureau-operated school, its 

programs, and its personnel, including 

but not limited to the following 

considerations: 

(1) The fundraising and acceptance of 

the donation would not likely result in 

public controversy; 

(2) Any conditions on donations must 

be consistent with the Bureau and 

Bureau-operated school’s policy, goals, 

and programs; and 

(3) The fundraising and donation may 

not involve any inappropriate goods or 

services. 

(f) Participation in fundraising is 

voluntary. No student, community 

member, or organization shall be forced, 

coerced or otherwise unduly pressured 

to participate in fundraising. No 

criticism nor any retaliatory action may 

be taken against, any student, 

community member, or organization for 

failure to participate or succeed in 

fundraising. 

§ 48.206 What approvals are necessary to 

accept a donation under this subpart? 

Prior to accepting a donation valued 

at $5,000 or more under this subpart, 

the Director’s designee must approve 

the acceptance and certify that it 

complies with this subpart, including 

the considerations of § 48.205, 

Departmental policy, and any applicable 

statute or regulation. 


khammond on DSKJM1Z7X2PROD with RULES
34952 Federal Register / Vol. 86, No. 124 / Thursday, July 1, 2021 / Rules and Regulations 

§ 48.207 How may donations solicited 

under this subpart be used? 

(a) The Bureau-operated school must 

first use the funds to pay documented 

costs of the fundraising activity and 

must use the remaining funds in 

accordance with paragraph (b) of this 

section. 

(b) Funds and in-kind donations 

solicited under this subpart may be used 

for the school purposes identified in the 

solicitation. If the solicitation did not 

identify the school purposes, the funds 

and in-kind donations may be used for 

any school purposes defined in § 48.3 of 

this part. 

§ 48.208 How does a Bureau-operated 

school process donated funds? 

The Bureau will deposit all funds 

received as donations into the 

designated Treasury account. Once the 

Bureau deposits the funds, the Bureau 

will work with the Bureau-operated 

school to make the funds available for 

school purposes. 

§ 48.209 How must the Bureau-operated 

school report donations? 

Each Bureau-operated school that has 

received donations must submit an 

annual report to the Director containing 

the following information: 

(a) A list of donors, donation 

amounts, and estimated values of 

donated goods and services; 

(b) An accounting of all costs of 

fundraising activities; 

(c) Supporting documentation 

showing the donations were used for 

school purposes; and 

(d) A report of the results achieved by 

use of donations. 

Bryan Newland, 

Principal Deputy Assistant Secretary—Indian 

Affairs. 

[FR Doc. 2021–13196 Filed 6–30–21; 8:45 am] 

BILLING CODE 4337–15–P 

DEPARTMENT OF THE TREASURY 

Alcohol and Tobacco Tax and Trade 

Bureau 

27 CFR Part 9 

[Docket No. TTB–2020–0011; T.D. TTB–170; 

Ref: Notice No. 196] 

RIN 1513–AC63 

Establishment of the Goose Gap 

Viticultural Area 

AGENCY: Alcohol and Tobacco Tax and 

Trade Bureau, Treasury. 

ACTION: Final rule; Treasury decision. 

SUMMARY: The Alcohol and Tobacco Tax 

and Trade Bureau (TTB) establishes the 

approximately 8,129-acre ‘‘Goose Gap’’ 

viticultural area in Benton County, 

Washington. The viticultural area is 

located entirely within the existing 

Yakima Valley and Columbia Valley 

viticultural areas. TTB designates 

viticultural areas to allow vintners to 

better describe the origin of their wines 

and to allow consumers to better 

identify wines they may purchase. 

DATES: This final rule is effective August 

2, 2021. 

FOR FURTHER INFORMATION CONTACT: 

Karen A. Thornton, Regulations and 

Rulings Division, Alcohol and Tobacco 

Tax and Trade Bureau, 1310 G Street 

NW, Box 12, Washington, DC 20005; 

phone 202–453–1039, ext. 175. 

SUPPLEMENTARY INFORMATION: 

Background on Viticultural Areas 

TTB Authority 

Section 105(e) of the Federal Alcohol 

Administration Act (FAA Act), 27 

U.S.C. 205(e), authorizes the Secretary 

of the Treasury to prescribe regulations 

for the labeling of wine, distilled spirits, 

and malt beverages. The FAA Act 

provides that these regulations should, 

among other things, prohibit consumer 

deception and the use of misleading 

statements on labels and ensure that 

labels provide the consumer with 

adequate information as to the identity 

and quality of the product. The Alcohol 

and Tobacco Tax and Trade Bureau 

(TTB) administers the FAA Act 

pursuant to section 1111(d) of the 

Homeland Security Act of 2002, 

codified at 6 U.S.C. 531(d). The 

Secretary has delegated the functions 

and duties in the administration and 

enforcement of these provisions to the 

TTB Administrator through Treasury 

Order 120–01, dated December 10, 2013 

(superseding Treasury Order 120–01, 

dated January 24, 2003). 

Part 4 of the TTB regulations (27 CFR 

part 4) authorizes TTB to establish 

definitive viticultural areas and regulate 

the use of their names as appellations of 

origin on wine labels and in wine 

advertisements. Part 9 of the TTB 

regulations (27 CFR part 9) sets forth 

standards for the preparation and 

submission to TTB of petitions for the 

establishment or modification of 

American viticultural areas (AVAs) and 

lists the approved AVAs. 

Definition 

Section 4.25(e)(1)(i) of the TTB 

regulations (27 CFR 4.25(e)(1)(i)) defines 

a viticultural area for American wine as 

a delimited grape-growing region having 

distinguishing features, as described in 

part 9 of the regulations, and a name 

and a delineated boundary, as 

established in part 9 of the regulations. 

These designations allow vintners and 

consumers to attribute a given quality, 

reputation, or other characteristic of a 

wine made from grapes grown in an area 

to the wine’s geographic origin. The 

establishment of AVAs allows vintners 

to describe more accurately the origin of 

their wines to consumers and helps 

consumers to identify wines they may 

purchase. Establishment of an AVA is 

neither an approval nor an endorsement 

by TTB of the wine produced in that 

area. 

Requirements 

Section 4.25(e)(2) of the TTB 

regulations (27 CFR 4.25(e)(2)) outlines 

the procedure for proposing an AVA 

and provides that any interested party 

may petition TTB to establish a grapegrowing region as an AVA. Section 9.12 

of the TTB regulations (27 CFR 9.12) 

prescribes standards for petitions for the 

establishment or modification of AVAs. 

Petitions to establish an AVA must 

include the following: 

• Evidence that the area within the 

proposed AVA boundary is nationally 

or locally known by the AVA name 

specified in the petition; 

• An explanation of the basis for 

defining the boundary of the proposed 

AVA; 

• A narrative description of the 

features of the proposed AVA affecting 

viticulture, such as climate, geology, 

soils, physical features, and elevation, 

that make the proposed AVA distinctive 

and distinguish it from adjacent areas 

outside the proposed AVA boundary; 

• If the proposed AVA is to be 

established within, or overlapping, an 

existing AVA, an explanation that both 

identifies the attributes of the proposed 

AVA that are consistent with the 

existing AVA and explains how the 

proposed AVA is sufficiently distinct 

from the existing AVA and therefore 

appropriate for separate recognition; 

• The appropriate United States 

Geological Survey (USGS) map(s) 

showing the location of the proposed 

AVA, with the boundary of the 

proposed AVA clearly drawn thereon; 

and 

• A detailed narrative description of 

the proposed AVA boundary based on 

USGS map markings. 

Goose Gap Petition 

TTB received a petition from Alan 

Busacca, on behalf of the Goose Gap 

Wine Grower’s Association, proposing 

to establish the ‘‘Goose Gap’’ AVA. The 

proposed AVA is located in Benton 

County, Washington, and lies entirely 

within the established Yakima Valley 

(27 CFR 9.69) and Columbia Valley (27 


khammond on DSKJM1Z7X2PROD with RULES