13902 Federal Register / Vol. 60, No. 50 / Wednesday, March 15, 1995 / Rules and Regulations

(4) The reports required to be filed

pursuant to paragraphs (a)(1) and (a)(2)

of this section shall be considered filed

when received by the regional office of

the Commission with whom the futures

commission files financial reports

pursuant to § 1.10.

* * * * *

Issued in Washington, D.C. on March 8,

1995, by the Commission.

Jean A. Webb,

Secretary of the Commission.

[FR Doc. 95–6212 Filed 3–14–95; 8:45 am]

BILLING CODE 6351–01–P

DEPARTMENT OF JUSTICE

Office of the Attorney General

28 CFR Part 40

[AG Order No. 1955–95]

Standards for Inmate Grievance

Procedures

AGENCY: Department of Justice.

ACTION: Interim rule with request for

comments.

SUMMARY: This interim rule modifies the

standards for state prison inmate

grievance procedures to allow for

certification of a procedure which, if not

in substantial compliance with

minimum standards promulgated by the

Attorney General, nevertheless is found

by the Attorney General to be otherwise

fair and effective. This interim rule also

adjusts the time limits for processing

grievances to help ensure final

disposition within the period of time

allowed for judicial continuance. These

amendments are necessary to

implement new statutory authority .

DATES: This interim rule is effective

March 15, 1995; comments must be

submitted on or before May 15, 1995.

ADDRESSES: Please submit comments to

Office of General Counsel, Bureau of

Prisons, HOLC room 709, 320 First

Street NW., Washington, DC 20534.

FOR FURTHER INFORMATION CONTACT:

John Megathlin, Administrator, National

Inmate Appeals, Federal Bureau of

Prisons, 320 First Street NW.,

Washington, DC 20534, telephone (202)

514–6165.

SUPPLEMENTARY INFORMATION:

Background

In an effort to reduce unnecessary

prisoner litigation, Congress enacted the

Civil Rights of Institutionalized Persons

Act (42 U.S.C. 1997). Section 7 of the

Act, 42 U.S.C. 1997e, adopted a

qualified exhaustion requirement for

civil rights actions filed by state

prisoners in federal district court under

42 U.S.C. 1983. That section allowed the

court, if appropriate and in the interests

of justice, to continue proceedings for a

period of 90 days in order to compel

prisoners to exhaust local

administrative prison grievance

procedures. Exhaustion could not be

required unless the Attorney General

had certified or the court had

determined that such administrative

grievance procedure was in substantial

compliance with the minimum

standards promulgated by the Attorney

General pursuant to 42 U.S.C. 1997e(b).

The Violent Crime Control and Law

Enforcement Act of 1994 (Pub. L. 103–

322) amended 42 U.S.C. 1997e. As

amended, 42 U.S.C. 1997e now allows

the court to continue proceedings for up

to 180 days. In addition, exhaustion

may be required if the Attorney General

certifies or the court determines that the

administrative grievance procedure in

question, even if it is not in compliance

with the minimum standards

promulgated by the Attorney General, is

‘‘otherwise fair and effective.’’

This interim rule accordingly revises

§ 40.11 in 28 CFR part 40 in order to

address the evaluation of an applicant’s

submission under the ‘‘otherwise fair

and effective’’ standard as well as under

the existing standards. Sections 40.14,

40.15, 40.16, 40.18 (a) and (b), 40.19(a),

and 40.22 are amended to include

reference to determination that a

grievance procedure is otherwise fair

and effective.

In addition, § 40.7(e) is amended to

specify that in all instances grievances

must be processed from initiation to

final disposition within 180 days,

including any extensions. Formerly,

paragraph (e) had required final

disposition within 90 days, excluding

any extension of time agreed to in

writing by the grievant. This

amendment is intended to provide

applicants the flexibility to set time

limits for the final disposition of

grievances within the extended period

of time allowed under newly revised 42

U.S.C. 1997e(a)(1). As revised,

paragraph (e) no longer requires written

consent from the grievant for an

extension of time on a response.

However, notification to the grievant of

an extension of time for a response at

any stage of the process remains

necessary in order to require exhaustion

of that stage.

Regulatory Process Matters

The Department of Justice’s

implementation of this rule as an

interim rule, with provisions for postpromulgation public comment, is based

on the ‘‘good cause’’ exception of 5

U.S.C. 553(d)(3). This rule is necessary

to conform existing regulations to recent

statutory amendments. Immediate

implementation will allow the Attorney

General to use without undue delay the

statutory ‘‘otherwise fair and effective’’

standard in consideration of current

applications by States or local

jurisdictions for certification, and

consequently reduce regulatory burdens

on these government entities.

The Attorney General has determined

that this rule is not a significant

regulatory action under Executive Order

12866, section 3(f), and accordingly this

rule was not reviewed by the Office of

Management and Budget. This rule does

not have federalism implications

warranting the preparation of a

Federalism Assessment in accordance

with section 6 of Executive Order

12612. The Attorney General, in

accordance with the Regulatory

Flexibility Act (5 U.S.C. 605(b)), has

reviewed this regulation and by

approving it certifies that this regulation

will not have a significant economic

impact on a substantial number of small

entities.

List of Subjects in 28 CFR Part 40

Administrative practice and

procedure, Civil rights, Inmate

grievance procedures, Prisoners.

Accordingly, by virtue of the

authority vested in the Attorney General

by law, including 5 U.S.C. 301, 28

U.S.C. 509, and 42 U.S.C. 1997e, part 40

of Chapter I of title 28 of the Code of

Federal Regulations is amended as

follows:

PART 40—STANDARDS FOR INMATE

GRIEVANCE PROCEDURES

1. The authority citation for part 40

continues to read as follows:

Authority: 42 U.S.C. 1997e.

2. In § 40.7, paragraph (e) is revised to

read as follows:

§ 40.7 Operation and decision.

* * * * *

(e) Fixed time limits. Responses shall

be made within fixed time limits at each

level of decision. Time limits may vary

between institutions, but expeditious

processing of grievances at each level of

decision is essential to prevent

grievance from becoming moot. Unless

the grievant has been notified of an

extension of time for a response,

expiration of a time limit at any stage of

the process shall entitle the grievant to

move to the next stage of the process. In

all instances grievances must be

processed from initiation to final
Federal Register / Vol. 60, No. 50 / Wednesday, March 15, 1995 / Rules and Regulations 13903

disposition within 180 days, inclusive

of any extensions.

* * * * *

3. Section 40.11 is revised to read as

follows:

§ 40.11 Submissions by applicant.

(a) Written statement. An application

for certification of a grievance procedure

under the Act shall be submitted to the

Office of the Attorney General, U.S.

Department of Justice, Main Justice

Building, Washington, DC 20530, and

shall include a written statement

describing the grievance procedure, a

brief description of the institution or

institutions covered by the procedure,

and accompanying plans for or evidence

of implementation in each institution.

(b) Evidence of compliance with

established standards. An applicant

seeking certification of a grievance

procedure as being in substantial

compliance with the standards

promulgated herein should submit

evidence of compliance with those

standards, including the following

information:

(1) Instructional materials. A copy of

the instructional materials for inmates

and employees regarding use of the

grievance procedure together with a

description of the manner in which

such materials are distributed, a

description of the oral explanation of

the grievance procedure, including the

circumstances under which it is

delivered, and a description of the

training, if any, provided to employees

and inmates in the skills necessary to

operate the grievance procedure.

(2) Form. A copy of the form used by

inmates to initiate a grievance and to

obtain review of the disposition of a

grievance.

(3) Information regarding past

compliance. For a grievance procedure

that has operated for more than one year

at the time of the application, the

applicant shall submit information

regarding the number and types of

grievances filed over the preceding year,

the disposition of the grievances with

sample responses from each level of

decision, the remedies granted,

evidence of compliance with time limits

at each level of decision, and a

description of the role of inmates and

employees in the formulation,

implementation, and operation of the

grievance procedure.

(4) Plan for collecting information.

For a grievance procedure that has

operated for less than one year at the

time of the application, the applicant

shall submit a plan for collecting the

information described in paragraph

(b)(3) of this section.

(5) Assurance of confidentiality. A

description of the steps taken to ensure

the confidentiality of records of

individual use of or participation in the

grievance procedure.

(6) Evaluation. A description of the

plans for periodic evaluation of the

grievance procedure, including

identification of the group, individuals

or individual who will conduct the

evaluation and identification of the

person or entity not under the control of

supervision of the institution who will

review the evaluation, together with two

copies of the most recent evaluation, if

one has been performed.

(c) Fair and effective procedures. The

Attorney General shall also certify a

grievance procedure under the Act, even

if the procedure is not in substantial

compliance with the standards

promulgated herein, if the Attorney

General determines that the procedure

is otherwise fair and effective for the

consideration and disposition of

grievances filed by inmates. If a

grievance procedure is not in substantial

compliance with all standards herein,

the applicant shall identify the aspects

in which the procedure is in substantial

compliance and those in which it is not,

describe the other relevant features of

the procedure, and explain why the

procedure is otherwise fair and

effective.

4. Section 40.14 is revised to read as

follows:

§ 40.14 Conditional certification.

If, in the judgment of the Attorney

General, a grievance procedure that has

been in existence less than one year is

at the time of application in substantial

compliance with the standards

promulgated herein or is otherwise fair

and effective, the Attorney General shall

grant conditional certification for one

year or until the applicant satisfies the

requirements of § 40.15, whichever

period is shorter.

5. Section 40.15 is revised to read as

follows:

§ 40.15 Full certification.

If, in the judgment of the Attorney

General, a grievance procedure that has

been in existence longer than one year

at the time of application is in

substantial compliance with the

standards promulgated herein or is

otherwise fair and effective, the

Attorney General shall grant full

certification. Such certification shall

remain in effect unless and until the

Attorney General finds reasonable cause

to believe that the grievance procedure

is no longer in substantial compliance

with the minimum standards or is no

longer fair and effective, and so notifies

the applicant in writing.

6. Section 40.16 is revised to read as

follows:

§ 40.16 Denial of certification.

If the Attorney General finds that the

grievance procedure is not in substantial

compliance with the standards

promulgated herein or is no longer fair

and effective, the Attorney General shall

deny certification and inform the

applicant in writing of the area or areas

in which the grievance procedure or the

application is deemed inadequate.

7. In § 40.18, paragraphs (a) and (b)

are revised to read as follows:

§ 40.18 Suspension of certification.

(a) Reasonable belief of noncompliance. If the Attorney General has

reasonable grounds to believe that a

previously certified grievance procedure

may no longer be in substantial

compliance with the minimum

standards or may no longer be fair and

effective, the Attorney General shall

suspend certification. The suspension

shall continue until such time as the

deficiency is corrected, in which case

certification shall be reinstated, or until

the Attorney General determines that

substantial compliance no longer exists

or that the procedure is no longer fair

and effective, in which case, except as

provided in paragraph (b) of this

section, the Attorney General shall

withdraw certification pursuant to

§ 40.19 of this part.

(b) Defect may be readily remedied;

good faith effort. If the Attorney General

determines that a grievance procedure is

no longer in substantial compliance

with the minimum standards or is no

longer fair and effective, but has reason

to believe that the defect may be readily

corrected and that good faith efforts are

underway to correct it, the Attorney

General may suspend certification until

the grievance procedure returns to

compliance with the minimum

standards or is otherwise fair and

effective.

* * * * *

8. In § 40.19, paragraph (a) is revised

to read as follows:

§ 40.19 Withdrawal of certification.

(a) Finding of non-compliance. If the

Attorney General finds that a grievance

procedure is no longer in substantial

compliance with the minimum

standards or is no longer otherwise fair

and effective, the Attorney General shall

withdraw certification, unless the

Attorney General concludes that

suspension of certification under

§ 40.18(b) of this part is appropriate.

* * * * *
13904 Federal Register / Vol. 60, No. 50 / Wednesday, March 15, 1995 / Rules and Regulations

9. Section 40.22 is revised to read as

follows:

§ 40.22 Significance of certification.

Certification of a grievance procedure

by the Attorney General shall signify

only that on the basis of the information

submitted, the Attorney General

believes the grievance procedure is in

substantial compliance with the

minimum standards or is otherwise fair

and effective. Certification shall not

indicate approval of the use or

application of the grievance procedure

in a particular case.

Dated: March 3, 1995.

Janet Reno,

Attorney General.

[FR Doc. 95–6287 Filed 3–14–95; 8:45 am]

BILLING CODE 4410–01–M

PENSION BENEFIT GUARANTY

CORPORATION

29 CFR Parts 2619 and 2676

Valuation of Plan Benefits in SingleEmployer Plans; Valuation of Plan

Benefits and Plan Assets Following

Mass Withdrawal; Amendments

Adopting Additional PBGC Rates

AGENCY: Pension Benefit Guaranty

Corporation.

ACTION: Final rule.

SUMMARY: This final rule amends the

Pension Benefit Guaranty Corporation’s

regulations on Valuation of Plan

Benefits in Single-Employer Plans and

Valuation of Plan Benefits and Plan

Assets Following Mass Withdrawal. The

former regulation contains the interest

assumptions that the PBGC uses to

value benefits under terminating singleemployer plans. The latter regulation

contains the interest assumptions for

valuations of multiemployer plans that

have undergone mass withdrawal. The

amendments set out in this final rule

adopt the interest assumptions

applicable to single-employer plans

with termination dates in April 1995,

and to multiemployer plans with

valuation dates in April 1995. The effect

of these amendments is to advise the

public of the adoption of these

assumptions.

EFFECTIVE DATE: April 1, 1995.

FOR FURTHER INFORMATION CONTACT:

Harold J. Ashner, Assistant General

Counsel, Office of the General Counsel,

Pension Benefit Guaranty Corporation,

1200 K Street, NW., Washington, DC

20005, 202–326–4024 (202–326–4179

for TTY and TDD).

SUPPLEMENTARY INFORMATION: This rule

adopts the April 1995 interest

assumptions to be used under the

Pension Benefit Guaranty Corporation’s

regulations on Valuation of Plan

Benefits in Single-Employer Plans (29

CFR part 2619, the ‘‘single-employer

regulation’’) and Valuation of Plan

Benefits and Plan Assets Following

Mass Withdrawal (29 CFR part 2676, the

‘‘multiemployer regulation’’).

Part 2619 sets forth the methods for

valuing plan benefits of terminating

single-employer plans covered under

title IV of the Employee Retirement

Income Security Act of 1974, as

amended. Under ERISA section 4041(c),

all single-employer plans wishing to

terminate in a distress termination must

value guaranteed benefits and ‘‘benefit

liabilities,’’ i.e., all benefits provided

under the plan as of the plan

termination date, using the formulas set

forth in part 2619, subpart C. (Plans

terminating in a standard termination

may, for purposes of the Standard

Termination Notice filed with PBGC,

use these formulas to value benefit

liabilities, although this is not required.)

In addition, when the PBGC terminates

an underfunded plan involuntarily

pursuant to ERISA section 4042(a), it

uses the subpart C formulas to

determine the amount of the plan’s

underfunding. Part 2676 prescribes

rules for valuing benefits and certain

assets of multiemployer plans under

sections 4219(c)(1)(D) and 4281(b) of

ERISA.

Appendix B to part 2619 set forth the

interest rates and actors under the

single-employer regulation. Appendix B

to part 2676 sets forth the interest rates

and factors under the multiemployer

regulation. Because these rates and

factors are intended to reflect current

conditions in the financial and annuity

markets, it is necessary to update the

rates and factors periodically.

The PBGC issues two sets of interest

rates and factors, one set to be used for

the valuation of benefits to be paid as

annuities and one set for the valuation

of benefits to be paid as lump sums. The

same assumptions apply to terminating

single-employer plans and to

multiemployer plans that have

undergone a mass withdrawal. This

amendment adds to appendix B to parts

2619 and 2676 sets of interest rates and

factors for valuing benefits in singleemployer plans that have termination

dates during April 1995 and

multiemployer plans that have

undergone mass withdrawal and have

valuation dates during April 1995.

For annuity benefits, the interests

rates will be 7.10% for the first 20 years

following the valuation date and 5.75%

thereafter. For benefits to be paid as

lump sums, the interest assumptions to

be used by the PBGC will be 5.75% for

the period during which benefits are in

pay status, 5.00% during the seven-year

period directly preceding the benefit’s

placement in pay status, and 4.0%

during any other years preceding the

benefit’s placement in pay status The

above annuity interest assumptions

represent a decrease (from those in

effect for March 1995) of .20 percent for

the first 20 years following the valuation

date are otherwise unchanged. The

lump sum interest assumptions

represent a decrease (from those in

effect for March 1995) of .25 percent for

the period during which benefits are in

pay status and the seven years directly

preceding that period; they are

otherwise unchanged.

Generally, the interest rates and

factors under these regulations are in

effect for at least one month. However,

the PBGC publishes its interest

assumptions each month regardless of

whether they represent a change from

the previous month’s assumptions. The

assumptions normally will be published

in the Federal Register by the 15th of the

preceding month or as close to that date

as circumstances permit.

The PBGC has determined that notice

and public comment on these

amendments are impracticable and

contrary to the public interest. This

finding is based on the need to

determine and issue new interest rates

and factors promptly so that the rates

and factors can reflect, as accurately as

possible, current market conditions.

Because of the need to provide

immediate guidance for the valuation of

benefits in single-employer plans whose

termination dates fall during April 1995,

and in multiemployer plans that have

undergone mass withdrawal and have

valuation dates during April 1995, the

PBGC finds that good cause exists for

making the rates and factors set forth in

this amendment effective less than 30

days after publication.

The PBGC has determined that this

action is not a ‘‘significant regulatory

action’’ under the criteria set forth in

Executive Order 12866, because it 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, pubic health or safety, or

State, local, or tribal governments or

communities; create a serious

inconsistency or otherwise interfere

with an action taken or planned by

another agency; materially alter the

budgetary impact of entitlements,

grants, user fees, or loan programs or the

rights and obligations of recipients

thereof; or raise novel legal or policy