21630 Federal Register / Vol. 65, No. 78 / Friday, April 21, 2000 / Rules and Regulations

DEPARTMENT OF AGRICULTURE

Cooperative State Research,

Education, and Extension Service

7 CFR Part 3419

RIN 0524–AA24

Matching Funds Requirement for

Formula Funds for Agricultural

Research and Extension Activities at

1890 Land-Grant Institutions, Including

Tuskegee University, and at the 1862

Land-Grant Institutions in Insular

Areas

AGENCY: Cooperative State Research,

Education, and Extension Service,

USDA.

ACTION: Final Rule.

SUMMARY: The Cooperative State

Research, Education, and Extension

Service (CSREES) adds a new part 3419

to Title 7, Subtitle B, Chapter XXXIV of

the Code of Federal Regulations, for the

purpose of implementing new statutory

matching requirements applicable to

Federal agricultural research and

extension formula funds for 1890 landgrant institutions, including Tuskegee

University, and to the 1862 land-grant

institutions in the Commonwealth of

Puerto Rico and the insular areas of

American Samoa, Guam, Micronesia,

Northern Marianas, and the Virgin

Islands.

EFFECTIVE DATE: April 21, 2000.

FOR FURTHER INFORMATION CONTACT: Dr.

Edward M. Wilson, Deputy

Administrator; Plant and Animal

Systems; Cooperative State Research,

Education, and Extension Service; U.S.

Department of Agriculture; Mail Stop

2220; 1400 Independence Avenue, S.W.;

Washington, D.C. 20250–2220; at 202–

401–4329, 202–401–4888 (fax) or via

electronic mail at ewilson@reeusda.gov.

SUPPLEMENTARY INFORMATION:

Background and Purpose

The Cooperative State Research,

Education, and Extension Service

(CSREES) adds a new part 3419 to Title

7, Subtitle B, Chapter XXXIV of the

Code of Federal Regulations, for the

purpose of implementing the new

matching requirements for agricultural

research and extension formula funds

authorized for the 1890 land-grant

institutions and Tuskegee University.

Section 226 of the Agricultural

Research, Extension, and Education

Reform Act of 1998 (AREERA), Pub. L.

105–185, amends Subtitle G of the

National Agricultural Research,

Extension, and Teaching Policy Act of

1977 (NARETPA) by adding a new

section 1449. This section requires

matching funds from non-Federal

sources for formula funds authorized

under sections 1444 and 1445 of

NARETPA for research and extension

activities at the 1890 land-grant

institutions and Tuskegee University.

This rule will also implement the new

matching requirements for the 1862

land-grant institutions in the

Commonwealth of Puerto Rico and the

insular areas of American Samoa, Guam,

Micronesia, Northern Marianas, and the

Virgin Islands. Section 753(d) and (e) of

the Agriculture, Rural Development,

Food and Drug Administration, and

Related Agencies Appropriations Act,

1999, enacted in Division A, section

101(a) of the Omnibus Consolidated and

Emergency Supplemental

Appropriations Act, 1999, Pub. L. 105–

277, 112 Stat. 2681–33 (1999

Agriculture Appropriations Act),

amended section 3(d) of the Hatch Act

of 1887 and section 3(e) of the SmithLever Act to subject the 1862 land-grant

institutions in the Commonwealth of

Puerto Rico, the Virgin Islands, and

Guam to the same matching

requirements as those applicable to an

eligible institution under section 1449

of NARETPA. The amendments made

by section 753 apply by operation of law

to American Samoa, Micronesia, and

Northern Marianas by virtue of section

1361(a) of Pub. L. 96–374, as amended

by 9(c) of Pub. L. 99–396, which

provides that any provision of law

related to land-grant institutions in the

Virgin Islands or Guam applies to the

land-grant institutions in American

Samoa, the Northern Marianas, and the

former Trust Territory of the Pacific

Islands, the land-grant institution of

which is the College of Micronesia.

Section 1449 requires that the State

make available matching funds to an

1890 institution out of non-Federal

funds. CSREES has determined that this

does not necessarily limit the source of

matching funds to those directly

provided by the State as a part of its

direct budget or appropriations process.

Accordingly, CSREES has defined ‘‘nonFederal sources’’ to include direct State

appropriations and any funds generated

by the 1890 institution or by the 1862

institution in the Commonwealth of

Puerto Rico or in an insular area and

made available to the institution under

other authority (other than authority to

charge tuition and fees paid by students)

provided by the State. This would

include, for example, gift acceptance or

user fee authority.

Public Comments and Changes to the

Final Rule

One comment was received from an

1862 land-grant institution in an insular

area requesting clarification on three

issues: (1) Whether an institution is

eligible for any agricultural research and

extension formula funds if the

institution fails to provide the full

matching requirement, (2) whether the

institution must certify that the required

matching funds are available prior to the

actual distribution of funds, and (3)

whether the definition of matching

funds, which indicates that they are not

only from non-Federal sources but also

funds made available by the State

government, precludes other sources of

non-Federal funds that are not from the

State government.

Each 1890 land-grant institution and

each 1862 land-grant institution in

insular areas and the Commonwealth of

Puerto Rico will be entitled to their

allocation of Federal agricultural

research and extension formula funds

less an amount equal to any required

matching amount that the institution

fails to provide. For example, the

matching requirement in fiscal year (FY)

2000 shall equal not less than 30

percent of the formula funds to be

distributed. If an institution was entitled

to $1,000,000 for extension but only

matches 15 percent, then the $1,000,000

would be reduced by 15 percent and the

institution would receive only $850,000.

However, the maximum awarded by

CSREES will be the amounts of the

annual allocations as indicated on the

CSREES–OD–1088’s, Distributions of

Hatch Act Funds and Smith-Lever Act

Funds.

Each 1890 land-grant institution and

each 1862 land-grant institution in

insular areas and the Commonwealth of

Puerto Rico must certify that the

required matching funds are available

prior to the actual distribution of any

funds. CSREES has added section

3419.5, Certification of Matching Funds,

to clarify that the annual certification of

matching funds must be provided to

CSREES prior to the distribution of

formula funds. This section also

provides that the eligible institutions

may submit through July 1 of the fiscal

year in which funds are appropriated

any revisions to their annual

certification of matching funds.

As mentioned in the ‘‘Background

and Purpose’’ section, CSREES has

determined that the definition of

matching funds does not necessarily

limit the source of matching funds to

those directly provided by the State as

part of its direct budget or

appropriations process. Accordingly,

Federal Register / Vol. 65, No. 78 / Friday, April 21, 2000 / Rules and Regulations 21631

CSREES has defined ‘‘non-Federal

sources’’ to include direct State

appropriations and any funds generated

by the 1890 land-grant institution or by

the 1862 institution in the

Commonwealth of Puerto Rico or in the

insular areas and made available to the

institution under other authority (other

than authority to charge tuition and fees

paid by students) provided by the State.

This would include, for example, gift

acceptance and user fee authority.

Classification

This rule was reviewed under

Executive Order 12866 and was

determined to be nonsignificant as it

will not create a serious inconsistency

or otherwise interfere with an action

planned by another agency; will not

materially alter the budgetary impact of

entitlement, grants, user fees, or loan

programs, or the rights and obligations

of the recipients thereof; and will not

raise novel legal or policy issues arising

out of legal mandates, the President’s

priorities, or principles set forth in this

executive order. This rule will not have

an annual effect on the economy of $100

million or more or adversely affect in a

material way the economy, a sector of

the economy, productivity, competition,

jobs, the environment, public health or

safety, or State, local, or tribal

governments or communities.

Regulatory Flexibility Act

The Department certifies that this rule

will not have a significant impact on a

substantial number of small entities as

defined in the Regulatory Flexibility

Act, Pub. L. No. 96–534 (5 U.S.C. 601

et seq.). Accordingly, a regulatory

flexibility analysis is not required for

this rule.

Catalog of Federal Domestic Assistance

The programs affected by this rule are

listed in the Catalog of Federal Domestic

Assistance under No. 10.205, Payments

to 1890 Land-Grant Institutions and

Tuskegee University, No. 10.500,

Cooperative Extension Service, and No.

10.203, Payments to Agricultural

Experiment Stations Under the Hatch

Act.

Paperwork Reduction Act

In accordance with the Office of

Management and Budget (OMB)

regulations (5 CFR Part 1320) which

implement the Paperwork Reduction

Act of 1995 (44 U.S.C. Chapter 35), the

information collection and

recordkeeping requirements that will be

imposed in the implementation of this

rule have been approved under OMB

Document No. 0524–0038.

Report to Congress

As required by 5 U.S.C. 801(a),

CSREES submitted a report on this final

rule to both Houses of Congress and the

Comptroller General prior to

publication.

List of Subjects in 7 CFR Part 3419

Agricultural extension, Agricultural

research, Colleges and universities.

For reasons set forth in the preamble,

Title 7, Subtitle B, Chapter XXXIV, of

the Code of Federal Regulations is

amnded by adding part 3419 to read as

follows:

PART 3419—MATCHING FUNDS

REQUIREMENT FOR AGRICULTURAL

RESEARCH AND EXTENSION

FORMULA FUNDS AT 1890 LANDGRANT INSTITUTIONS, INCLUDING

TUSKEGEE UNIVERSITY, AND AT 1862

LAND-GRANT INSTITUTIONS IN

INSULAR AREAS

Sec.

3419.1 Definitions.

3419.2 Matching funds.

3419.3 Determination of non-Federal

sources of funds.

3419.4 Limited waiver authority.

3419.5 Certification of matching funds.

3419.6 Use of matching funds.

3419.7 Redistribution of funds.

Authority: 5 U.S.C. 301, 7 U.S.C. 3222d;

Sec. 753, Pub. L. No. 105–277, 112 Stat.

2681–33.

§ 3419.1 Definitions.

As used in this part:

Eligible institution means a college or

university eligible to receive funds

under the Act of August 30, 1890 (7

U.S.C. 321 et seq.) (commonly known as

the Second Morrill Act), including

Tuskegee University, or a college or

university designated under the Act of

July 2, 1862 (7 U.S.C. 301, et seq.)

(commonly known as the First Morrill

Act) and located in the Commonwealth

of Puerto Rico and the insular areas of

American Samoa, Guam, Micronesia,

Northern Marianas, and the Virgin

Islands.

Formula funds means agricultural

research funds provided to the eligible

institutions under section 1445 of the

National Agricultural Research,

Extension, and Teaching Policy Act of

1977 (NARETPA), as amended, or under

section 3 of the Hatch Act of 1887, 7

U.S.C. 361c, and agricultural extension

funds provided to the eligible

institutions under section 1444 of

NARETPA or under sections 3(b) and (c)

of the Smith-Lever Act, 7 U.S.C. 343(b)

and (c).

Matching funds means funds from

non-Federal sources made available by

the State to the eligible institutions:

(a) For programs or activities that fall

within the purposes of agricultural

research and cooperative extension

under sections 1444 and 1445 of

NARETPA, the Hatch Act of 1887, and

the Smith-Lever Act; or

(b) For qualifying educational

activities. Matching funds means cash

contributions and excludes in-kind

matching contributions.

Non-Federal sources means funds

made available by the State to the

eligible institution either through direct

appropriation or under any authority

(other than authority to charge tuition

and fees paid by students) provided by

a State to an eligible institution to raise

revenue, such as gift acceptance

authority or user fees.

Qualifying educational activities

means programs that address food and

agricultural sciences components of an

eligible institution.

Secretary means the Secretary of

Agriculture and any other officer or

employee of the Department of

Agriculture to whom the authority

involved may be delegated.

State means the government of any

one of the fifty States, the

Commonwealth of Puerto Rico, Guam,

American Samoa, the Commonwealth of

Northern Marianas, the Virgin Islands of

the United States, the Republic of Palau,

the Republic of the Marshall Islands,

and the Federated States of Micronesia.

§ 3419.2 Matching funds.

The distribution of formula funds

shall be subject to the following

matching requirements: (a) For fiscal

year 2000, matching funds shall equal

not less than 30 percent of the formula

funds to be distributed to the eligible

institution;

(b) For fiscal year 2001, matching

funds shall equal not less than 45

percent of the formula funds to be

distributed to the eligible institution;

and

(c) For fiscal year 2002 and each fiscal

year thereafter, the matching funds shall

equal not less than 50 percent of the

formula funds to be distributed to the

eligible institution.

§ 3419.3 Determination of non-federal

sources of funds.

Each eligible institution shall submit

by September 30, 1999, a report

describing for fiscal year 1999:

(a) The sources of non-Federal funds

made available to the eligible

institutions for agricultural research,

extension, and qualified educational

activity to meet the matching

requirements of section 1449 of

NARETPA, as amended; and

(b) The amount of funds generally

available from each source. This report

21632 Federal Register / Vol. 65, No. 78 / Friday, April 21, 2000 / Rules and Regulations

for the fiscal year ending September 30,

1999, may also include a request for a

waiver of the matching funds

requirement for fiscal year 2000.

§ 3419.4 Limited waiver authority.

The Secretary may waive the

matching funds requirement for fiscal

year 2000 for an eligible institution of a

State if the Secretary determines that,

based on the report received under

§ 3419.3, the State will be unlikely to

satisfy the matching requirement. The

criteria to waive the match in fiscal year

2000 may include:

(a) Natural disaster, flood, fire,

tornado, hurricane, or drought;

(b) State and/or institution facing a

financial crisis; or

(c) Demonstration of a good faith

effort to obtain funds. Approval or

disapproval of the request for a waiver

will be based on the report submitted

under § 3419.3. The Secretary may not

waive the matching requirement for any

fiscal year other than fiscal year 2000.

§ 3419.5 Certification of matching funds.

Prior to the distribution of formula

funds each fiscal year, each eligible

institution must certify as to the

availability of matching funds. Eligible

institutions may revise their

certification of matching funds through

July 1 of the fiscal year in which funds

are appropriated.

§ 3419.6 Use of matching funds.

The required matching funds for the

formula programs shall be used by an

eligible institution for agricultural

research and extension activities that

have been approved in the plan of work

required under sections 1444(d) and

1445(c) of the National Agricultural

Research, Extension, and Teaching

Policy Act of 1977, section 7 of the

Hatch Act of 1887, section 4 of the

Smith-Lever Act, or for approved

qualifying education activities.

§ 3419.7 Redistribution of funds.

All formula funds not matched and

reported under § 3419.5 by July 1 of

each fiscal year will be reapportioned to

the other eligible institutions who have

satisfied their current fiscal year

requirement for matching funds for the

formula funds. Unmatched research and

extension funds will be reapportioned

in accordance with the research and

extension statutory distribution

formulas applicable to the 1890 and

1862 land-grant institutions,

respectively. Any redistribution of

funds shall be subject to the same

matching requirement under § 3419.2.

Done at Washington, D.C., this 13th day of

April 2000.

Eileen Kennedy,

Deputy Under Secretary, Research,

Education, and Economics.

[FR Doc. 00–9793 Filed 4–20–00; 8:45 am]

BILLING CODE 3410–22–P