34038 Federal Register / Vol. 66, No. 123 / Tuesday, June 26, 2001 / Rules and Regulations

DEPARTMENT OF EDUCATION

34 CFR Parts 675, 676, and 692

Federal Work-Study Programs, Federal

Supplemental Educational Opportunity

Grant Program, and Special

Leveraging Educational Assistance

Partnership Program

AGENCY: Department of Education.

ACTION: Final regulations.

SUMMARY: The Federal Work-Study

(FWS), Federal Supplemental

Educational Opportunity Grant

(FSEOG), and Special Leveraging

Educational Assistance Partnership

(SLEAP) programs are authorized under

the Higher Education Act of 1965 as

amended (HEA). We amend the

regulations for the FWS, FSEOG, and

SLEAP programs to conform them to

statutory changes made to the HEA.

DATES: These regulations are effective

July 1, 2001.

FOR FURTHER INFORMATION CONTACT:

1. For the FWS and FSEOG programs:

Ms. Kathy Gause, U.S. Department of

Education, 400 Maryland Avenue, SW.,

Regional Office Building 3, Room 3045,

Washington, DC 20202–5447.

Telephone: (202) 708–8242.

2. For the SLEAP Program: Ms. Jackie

Butler, U.S. Department of Education,

400 Maryland Avenue, SW., Regional

Office Building 3, Room 3045,

Washington, DC 20202–5447.

Telephone: (202) 708–8242.

If you use a telecommunications

device for the deaf (TDD), you may call

the Federal Information Relay Service

(FIRS) at 1–800–877–8339.

Individuals with disabilities may

obtain this document in an alternative

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

audiotape, or computer diskette) on

request to one of the contact persons

listed under this heading.

SUPPLEMENTARY INFORMATION:

FWS and FSEOG Programs

We amend the regulations for the

FWS and FSEOG programs to conform

them to statutory changes made to the

HEA by the Higher Education

Amendments of 1998, Public Law 105–

244. Institutions participating in the

FWS and FSEOG programs normally are

required to pay an institutional share

under each program. However, certain

institutions are eligible for a waiver of

those institutional share

responsibilities. Prior to the Higher

Education Amendments of 1998, the

institutions that were eligible for a

waiver were those that qualified as

eligible institutions under the

institutional development programs

authorized under Title III of the HEA.

The regulations for the FWS and FSEOG

programs identified those Title III, HEA

programs in §§ 675.26(d)(2)(i)(A) and

676.21(b)(1), respectively.

The Higher Education Amendments

of 1998 moved one of the programs, the

Developing Hispanic-Serving

Institutions Program, from Title III to

Title V of the HEA. It also added two

new programs to Title III, the American

Indian Tribally Controlled Colleges and

Universities Program and the Alaska

Native and Native Hawaiian-Serving

Institutions Program. We have amended

§§ 675.26(d)(2)(i)(A) and 676.21(b)(1) to

reflect those statutory changes.

SLEAP Program

We amend the regulations for the

SLEAP Program to conform them to

statutory changes made to the HEA by

section 316 of the ‘‘Department of

Education Appropriations Act, 2001,’’

Title III of the Department of Labor,

Health and Human Services, and

Education, and Related Agencies

Appropriations Act, 2001, as enacted by

section 1(a)(1) of Pub. L. 106–554, the

‘‘Consolidated Appropriations Act

2001.’’

The SLEAP Program, a component of

the Leveraging Educational Assistance

Partnership (LEAP) Program, was added

by the Higher Education Amendments

of 1998. On November 1, 2000, we

published final regulations for the

SLEAP Program. However, on December

21, 2000, section 316 of the

‘‘Department of Education

Appropriations Act, 2001’’ was enacted

which:

• Eliminated the SLEAP authorized

activities that provided services to

preschool, elementary school, and

secondary school students;

• Combined and clarified the existing

SLEAP authorized activities for

postsecondary students;

• Added a special rule to ensure that

the SLEAP Program generates new needbased State funds in excess of the

amount the State spent for need-based

programs in the 1999–2000 award year

(the year before the start of the SLEAP

Program); and

• Prohibited the use of SLEAP

Program funds to pay any

administrative costs.

We have amended §§ 692.50, 692.52,

692.53, 692.54, 692.60 and 692.71, and

have added § 692.72, to reflect these

statutory changes.

Waiver of Proposed Rulemaking and

Negotiated Rulemaking

Under the Administrative Procedure

Act (5 U.S.C. 553) the Department

generally offers interested parties the

opportunity to comment on proposed

regulations. However, these regulations

merely reflect statutory changes, correct

cross-references, and remove obsolete

regulatory provisions. The changes do

not establish or affect substantive

policy. Therefore, the Secretary has

concluded that these regulations are

technical in nature and do not

necessitate public comment. Therefore,

under 5 U.S.C. 553(b)(B), the Secretary

has determined that proposed

regulations are unnecessary and

contrary to the public interest. The

Secretary also waives the 30-day

delayed effective date under 5 U.S.C.

553(d)(3).

For the same reasons, the Secretary

has determined, under section 492(b)(2)

of the HEA, that these regulations

should not be subject to negotiated

rulemaking.

Regulatory Flexibility Act Certification

The Secretary certifies that these

regulations would not have a significant

economic impact on a substantial

number of small entities. Small entities

affected by these regulations are small

institutions of higher education.

Although States and State agencies are

impacted by these regulations, they are

not defined as ‘‘small entities’’ in the

Regulatory Flexibility Act. These

regulations contain technical

amendments designed to clarify and

correct current regulations. The changes

will not have a significant economic

impact on the institutions, State or State

agencies affected.

Paperwork Reduction Act of 1995

These regulations do not contain any

information collection requirements.

Intergovernmental Review

The FSEOG and SLEAP programs are

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 these programs.

The FWS Program is not subject to the

requirements of Executive Order 12372

and the regulations in 34 CFR part 79.

Assessment of Educational Impact

Based on our own review, we have

determined that these final regulations

do not require transmission of

information that any other agency or

Federal Register / Vol. 66, No. 123 / Tuesday, June 26, 2001 / Rules and Regulations 34039

authority of the United States gathers or

makes available.

Electronic Access to This Document

You may view this document, as well

as all other Department of Education

documents published in the Federal

Register, in text or Adobe Portable

Document Format (PDF) on the Internet

at the following site: http://

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You may also view this document in

text or PDF at the following site: http:/

/www.ifap.ed.gov.

Note: 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 on GPO

Access at: http://www.access.gpo.gov/nara/

index.html.

(Catalog of Federal Domestic Assistance

Numbers: 84.007 Federal Supplemental

Educational Opportunity Grant Program;

84.033 Federal Work-Study Program; 84.069

Leveraging Educational Assistance

Partnership Program.)

List of Subjects

34 CFR Parts 675 and 676

Colleges and universities,

Employment, Grant programseducation, Reporting and recordkeeping

requirements, Student aid.

34 CFR Part 692

Grant programs—education,

Postsecondary education, State

administered—education, Student aid—

education, Reporting and recordkeeping

requirements.

Dated: June 21, 2001.

Maureen A. McLaughlin,

Deputy Assistant Secretary for Policy,

Planning and Innovation, Office of

Postsecondary Education.

For the reasons stated in the

preamble, the Secretary amends title 34

of the Code of Federal Regulations by

amending parts 675, 676, and 692 as

follows:

PART 675—FEDERAL WORK-STUDY

PROGRAMS

1. The authority citation for part 675

continues to read as follows:

Authority: 42 U.S.C. 2751–2756b, unless

otherwise noted.

2. Section 675.26 is amended by

revising paragraph (d)(2)(i)(A) and the

section authority to read as follows:

§ 675.26 FWS Federal share limitations.

* * * * *

(d) * * *

(2) * * *

(i) * * *

(A) Is designated as an eligible

institution under—

(1) The Developing Hispanic-Serving

Institutions Program (34 CFR part 606);

(2) The Strengthening Institutions

Program, American Indian Tribally

Controlled Colleges and Universities

Program, or Alaska Native and Native

Hawaiian-Serving Institutions Program

(34 CFR part 607);

(3) The Strengthening Historically

Black Colleges and Universities Program

(34 CFR part 608); or

(4) The Strengthening Historically

Black Graduate Institutions Program (34

CFR part 609); and

* * * * *

(Authority: 20 U.S.C. 1068d and 1103d; 42

U.S.C. 2753)

PART 676—FEDERAL

SUPPLEMENTAL EDUCATIONAL

OPPORTUNITY GRANT PROGRAM

3. The authority citation for part 676

continues to read as follows:

Authority: 20 U.S.C. 1070b–1070b–3,

unless otherwise noted.

4. Section 676.21 is amended by

revising paragraph (b)(1) and the section

authority to read as follows:

§ 676.21 FSEOG Federal share limitations.

* * * * *

(b) * * *

(1) Is designated as an eligible

institution under—

(i) The Developing Hispanic-Serving

Institutions Program (34 CFR part 606);

(ii) The Strengthening Institutions

Program, American Indian Tribally

Controlled Colleges and Universities

Program, or Alaska Native and Native

Hawaiian-Serving Institutions Program

(34 CFR part 607); or

(iii) The Strengthening Historically

Black Colleges and Universities Program

(34 CFR part 608); and

* * * * *

(Authority: 20 U.S.C. 1068d, 1103d, and

1070b–2)

PART 692—LEVERAGING

EDUCATIONAL ASSISTANCE

PARTNERSHIP PROGRAM

5. The authority citation for part 692

continues to read as follows:

Authority: 20 U.S.C. 1070c through 1070c–

4, unless otherwise noted.

6. Section 692.50 is revised to read as

follows:

§ 692.50 What is the Special Leveraging

Educational Assistance Partnership

Program?

The Special Leveraging Educational

Assistance Partnership (SLEAP)

Program assists States in providing

grants, scholarships, and community

service work-study assistance to eligible

students who attend institutions of

higher education and demonstrate

financial need.

(Authority: 20 U.S.C. 1070c–3a)

7. Section 692.52 is revised to read as

follows:

§ 692.52 What definitions apply to the

SLEAP Program?

The definitions listed in § 692.4 apply

to the SLEAP Program.

(Authority: 20 U.S.C. 1070c–3a)

8. Section 692.53 is amended by

revising paragraph (c) to read as follows:

§ 692.53 What requirements must a State

satisfy to receive SLEAP Program funds?

* * * * *

(c) Have a program that satisfies the

requirements in § 692.21(a), (b), (d), (e),

(f), (g), (j), and (k).

9. Section 692.54 is revised to read as

follows:

§ 692.54 What eligibility requirements

must a student satisfy to participate in the

SLEAP Program?

To receive assistance under the

SLEAP Program, a student must meet

the eligibility requirements contained in

§ 692.40.

(Authority: 20 U.S.C. 1070c–3a)

10. Section 692.60 is amended by

revising paragraph (b); redesignating

paragraphs (c) and (d) as paragraphs (d)

and (e) respectively; and adding a new

paragraph (c) to read as follows:

§ 692.60 What must a State do to receive

an allotment under the SLEAP Program?

* * * * *

(b) Identify the activities in § 692.71

for which it plans to use the SLEAP

Federal and non-Federal funds;

(c) Ensure that the non-Federal funds

used as matching funds represent

dollars that are in excess of the total

dollars that a State spent for need-based

grants, scholarships, and work-study

assistance for fiscal year 1999, including

the State funds reported as part of its

LEAP Program;

* * * * *

11. Section 692.71 is revised to read

as follows:

34040 Federal Register / Vol. 66, No. 123 / Tuesday, June 26, 2001 / Rules and Regulations

§ 692.71 What activities may be funded

under the SLEAP Program?

A State may use the funds it receives

under the SLEAP Program for one or

more of the following activities:

(a) Supplement LEAP grant awards to

eligible students who demonstrate

financial need by—

(1) Increasing the LEAP grant award

amounts for students; or

(2) Increasing the number of students

receiving LEAP grant awards.

(b) Supplement LEAP community

service work-study awards to eligible

students who demonstrate financial

need by—

(1) Increasing the LEAP community

service work-study award amounts for

students; or

(2) Increasing the number of students

receiving LEAP community service

work-study awards.

(c) Award scholarships to eligible

students who demonstrate financial

need and who—

(1) Demonstrate merit or academic

achievement; or

(2) Wish to enter a program of study

leading to a career in—

(i) Information technology;

(ii) Mathematics, computer science, or

engineering;

(iii) Teaching; or

(iv) Other fields determined by the

State to be critical to the State’s

workforce needs.

(Authority: 20 U.S.C. 1070c–3a)

12. Section 692.72 is added to read as

follows:

§ 692.72 May a State use the funds it

receives under the SLEAP Program to pay

administrative costs?

A State may not use any of the funds

it receives under the SLEAP Program to

pay any administrative costs.

(Authority: 20 U.S.C. 1070c–3a)

[FR Doc. 01–16006 Filed 6–25–01; 8:45 am]

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