Source: https://www.federalregister.gov/documents/2019/06/05/2019-11727/outdated-regulations-expanding-opportunity-through-quality-charter-schools-program-csp-grants-for
Timestamp: 2019-06-24 13:24:32
Document Index: 690293063

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Federal Register :: Outdated Regulations-Expanding Opportunity Through Quality Charter Schools Program (CSP)-Grants for Credit Enhancement for Charter School Facilities
Outdated Regulations-Expanding Opportunity Through Quality Charter Schools Program (CSP)-Grants for Credit Enhancement for Charter School Facilities
A Rule by the Education Department on 06/05/2019
This final rule is effective June 5, 2019.
84 FR 25996
25996-25998 (3 pages)
34 CFR 225
1810-AB56
Part 225—Credit Enhancement for Charter School Facilities Program (§ 225.1)
Part 225—Credit Enhancement for Charter School Facilities Program (§ 225.4)
Part 225—Credit Enhancement for Charter School Facilities Program (§ 225.11)
Part 225—Credit Enhancement for Charter School Facilities Program (§ 225.12)
List of Subjects in 34 CFR Part 225
PART 225—CREDIT ENHANCEMENT FOR CHARTER SCHOOL FACILITIES PROGRAM
https://www.federalregister.gov/d/2019-11727 https://www.federalregister.gov/d/2019-11727
The Secretary amends the CSP—Grants for Credit Enhancement for Charter School Facilities program regulations to reflect changes made to title IV of the Elementary and Secondary Education Act of 1965 (ESEA), as amended by the Every Student Succeeds Act (ESSA), to incorporate relevant statutory changes for the program and its implementing regulations.
Clifton Jones, 400 Maryland Avenue SW, Room 3E211, Washington, DC 20202. Telephone: (202) 205-2204. Email: clifton.jones@ed.gov.
On December 10, 2015, the ESSA, which reauthorized the ESEA, as amended by the No Child Left Behind Act of 2001 (NCLB), was signed into law. Therefore, we are revising, in title 34 of the Code of Federal Regulations (CFR), §§ 225.1(b), 225.4(a), 225.11(a)(7), and 225.12(a)(1) to reflect specific statutory changes. The following paragraphs describe the changes we are making to the regulations and the statutory changes that necessitate them.
Statute: Section 4304 of the ESEA.
Current Regulations: Current § 225.1 provides the purpose of the Credit Enhancement for Charter School Facilities program. The regulation was derived from the authorizing statute for the program under the ESEA, as amended by NCLB, that allowed grantees to use the grant funds deposited in the reserve account to assist charter schools to access private sector capital to accomplish either of the following objectives: (1) The acquisition of an interest in improved or unimproved real property that is necessary to commence or continue the operation of a charter school; or (2) the construction of new facilities, or the renovation, repair, or alteration of existing facilities, necessary to commence or continue the operation of a charter school.
Final Regulations: Revised § 225.1 updates the stated purpose of the Credit Enhancement for Charter School Facilities program. The regulation is derived from the authorizing statute for the program under the ESEA, as amended by ESSA, that allows for grantees to use the funds deposited in the reserve account to assist charter schools to access private sector capital to accomplish one or more of the following objectives: (1) The acquisition of an interest in improved or unimproved real property that is necessary to commence or continue the operation of a charter school; (2) the construction of new facilities, or the renovation, repair, or alteration of existing facilities, necessary to commence or continue the operation of a charter school; or (3) the predevelopment costs required to assess sites for purposes of the program and that are necessary to commence or continue the operation of a charter school.
Reasons: Section 4304(e) of the ESEA, as amended by ESSA, added an additional program objective for which an eligible entity receiving a grant under this program may use the funds. Therefore, we are adding the new program objective to the regulation.
Statute: Section 4310(2) of the ESEA, as amended by ESSA, defines “charter school.”
Current Regulations: Section 225.4(a) currently defines “charter school” under this program as it was defined in section 5210 of the ESEA, as amended by NCLB.
Final Regulations and Reasons: The final regulation updates the definition of “charter school” under this program, to reference the current definition in section 4310(2) of the ESEA, as amended by the ESSA.
Statute: Section 4303(g)(2) of the ESEA.
Current Regulations: The current regulation provides criteria that the Secretary will use to evaluate an application for a Credit Enhancement for Charter School Facilities grant. Section 225.11(a)(7) references States with strong charter laws, consistent with the criteria for such laws in section 5202(e)(3) of the ESEA, as amended by NCLB.
Final Regulations and Reasons: The final regulation updates § 225.11(a)(7) to reference States with strong charter laws, consistent with the criteria for such laws in section 4303(g)(2) of the ESEA, as amended by ESSA.
Current Regulations: The current regulation provides that the Secretary Start Printed Page 25997may award up to 15 additional points under a competitive preference priority related to the capacity of charter schools to offer public school choice in those communities with the greatest need for this choice based on three factors. The three factors are: (1) The extent to which the applicant would target services to geographic areas in which a large proportion or number of public schools have been identified for improvement, corrective action, or restructuring under Title I of the ESEA, as amended by NCLB; (2) the extent to which the applicant would target services to geographic areas in which a large proportion of students perform below proficient on State academic assessments; and (3) the extent to which the applicant would target services to communities with large proportions of students from low-income families.
Final Regulations: The final regulation updates the first factor in the list above to refer to the extent to which the applicant would target services in geographic areas in which a large proportion or number of public schools have been identified for comprehensive support and improvement or targeted support and improvement under the ESEA, as amended by the ESSA.
Reasons: With the passage of the ESEA, as amended by ESSA, the categories of schools that States must identify under section 1111 have changed, and thus, the categories of schools in § 225.12 that are based on these provisions must be updated. Under the ESEA, as amended by NCLB, the Department could award additional points to applicants that target services to geographic areas in which a large proportion or number of public schools have been identified for improvement, corrective action, or restructuring. However, under the ESEA, as amended by ESSA, States must now identify schools for comprehensive support and improvement and targeted support and improvement.
Waiver of Rulemaking and Delayed Effective Date: Under the Administrative Procedure Act (APA) (5 U.S.C. 553), the Department generally offers interested parties the opportunity to comment on proposed regulations. However, the APA provides that an agency is not required to conduct notice and comment rulemaking when the agency for good cause finds that notice and public procedure thereon are impracticable, unnecessary, or contrary to the public interest. 5 U.S.C. 553(b)(B).
There is good cause here for waiving rulemaking under the APA because this regulatory action revises regulations to conform with statutory changes. This regulatory action does not establish or affect substantive policy. Therefore, under 5 U.S.C. 553(b)(B), the Secretary has determined that obtaining public comment on this regulatory action is unnecessary.
Rulemaking is “unnecessary” when “the administrative rule is a routine determination, insignificant in nature and impact, and inconsequential to the industry and to the public.” Utility Solid Waste Activities Group v. EPA, 236 F.3d 749, 755 (D.C. Cir. 2001), quoting U.S. Department of Justice, Attorney General's Manual on the Administrative Procedure Act 31 (1947) and South Carolina v. Block, 558 F. Supp. 1004, 1016 (D.S.C. 1983).
The APA generally requires that regulations be published at least 30 days before their effective date, unless the agency has good cause to implement its regulations sooner (5 U.S.C. 553(d)(3)). As previously stated, because the final regulations merely reflect existing statutory changes, there is good cause to waive the delayed effective dates in the APA and make the final regulations effective upon publication.
Under Executive Order 13771, for each new regulation that the Department proposes for notice and comment or otherwise promulgates that is a significant regulatory action under Executive Order 12866, and that imposes total costs greater than zero, it must identify two deregulatory actions. For FY 2019, any new incremental costs associated with a new regulation must be fully offset by the elimination of existing costs through deregulatory actions. Because this final rule is not a significant regulatory action, the requirements of Executive Order 13771 do not apply.
We are issuing these final regulations only on a reasoned determination that their benefits justify their costs. In choosing among alternative regulatory approaches, we selected those Start Printed Page 25998approaches that maximize net benefits. The Department believes that these final regulations are consistent with the principles in Executive Order 13563.
We also have determined that this regulatory action is not significant and would not unduly interfere with State, local, and Tribal governments in the exercise of their governmental functions.
In accordance with the Executive orders, the Department has assessed the potential costs and benefits, both quantitative and qualitative, of this regulatory action. The final regulations are not expected to have a significant impact.
The CSP—Grants for Credit Enhancement for Charter School Facilities are subject to Executive Order 12372 and the regulations in 34 CFR part 79.
You may also view this document in text or PDF at the following site: www.ifap.ed.gov.
(Catalog of Federal Domestic Assistance Number: 84.354A CSP—Grants for Credit Enhancement for Charter School Facilities.)
For the reasons discussed in the preamble, the Secretary amends part 225 of title 34 of the Code of Federal Regulations as follows:
Authority: 20 U.S.C. 1221e-3, 1232, and 7221c.
§§ 225.1 through 225.21
2. Sections 225.1 through 225.21 are amended by removing the authority citations at the end of each section.
3. Section 225.1 is further amended by adding paragraph (b)(3) to read as follows:
§ 225.1
What is the Credit Enhancement for Charter School Facilities Program?
(3) Assist charter schools with the predevelopment costs required to assess sites for the purpose of acquiring (by purchase, lease, donation, or otherwise) an interest (including an interest held by a third party for the benefit of a charter school) in improved or unimproved real property or constructing new facilities, or renovating, repairing, or altering existing facilities, and that are necessary to commence or continue the operation of a charter school.
4. Section 225.4 is further amended by removing the words “5210 of the Elementary and Secondary Education Act of 1965, as amended by the No Child Left Behind Act of 2001” from paragraph (a) introductory text and adding in their place the words “4310(2) of the Elementary and Secondary Education Act of 1965, as amended by the Every Student Succeeds Act”.
5. Section 225.11 is further amended by removing the words “5202(e)(3) of the Elementary and Secondary Education Act of 1965” from paragraph (a)(7) and adding in their place the words “4303(g)(2) of the Elementary and Secondary Education Act of 1965”.
6. Section 225.12 is further amended by revising paragraph (a)(1) to read as follows:
What funding priority may the Secretary use in making a grant award?
(1) The extent to which the applicant would target services to geographic areas in which a large proportion or number of public schools have been identified for comprehensive support and improvement or targeted support and improvement under the ESEA, as amended by the Every Student Succeeds Act;
[FR Doc. 2019-11727 Filed 6-4-19; 8:45 am]