[Federal Register Volume 65, Number 244 (Tuesday, December 19, 2000)]
[Rules and Regulations]
[Pages 79309-79311]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-32199]
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DEPARTMENT OF EDUCATION
34 CFR Parts 606, 607, and 608
Developing Hispanic-Serving Institutions Program, Strengthening
Institutions Program, American Indian Tribally Controlled Colleges and
Universities Program, and Strengthening Historically Black Colleges and
Universities Program
AGENCY: Office of Postsecondary Education, Department of Education.
ACTION: Final regulations.
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SUMMARY: We are amending the regulations governing the Developing
Hispanic-Serving Institutions, Strengthening Institutions, American
Indian Tribally Controlled Colleges and Universities, and Strengthening
Historically Black Colleges and Universities Programs to incorporate
statutory changes made by the Higher Education Amendments of 1998 (1998
Amendments). The 1998 Amendments provide that if grantee institutions
under the Developing Hispanic-Serving Institutions, Strengthening
Institutions, American Indian Tribally Controlled Colleges and
Universities, and Strengthening Historically Black Colleges and
Universities Programs use grant funds to establish or increase
endowment funds, we can subject that use to appropriate requirements
under the Endowment Challenge Grant Program. These amendments to the
regulations implement the statutory changes.
DATES: These regulations are effective January 18, 2001.
FOR FURTHER INFORMATION CONTACT: Darlene Collins, U.S. Department of
Education, 1990 K Street, NW., Room 6032, Washington, DC 20006-8512.
Telephone: (202) 502-7576. 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 the contact person listed in the preceding
paragraph.
SUPPLEMEMTARY INFORMATION:
Background
As amended by the 1998 Amendments, sections 311(d)(1),
316(c)(3)(A), 323(b)(1), and 503(c)(1) of the Higher Education Act of
1965, as amended (HEA), authorize grantee institutions under the
Strengthening Institutions, American Indian Tribally Controlled
Colleges and Universities, Strengthening Historically Black Colleges
and Universities, and Developing Hispanic Serving-Institutions Programs
to use up to 20% of their grants funds to establish or increase
endowment funds. Amended sections 311(d)(3), 316(c)(3)(C), 323(b)(3),
and 503(c)(3) of the HEA provide, in effect, that we can subject an
institution's use of grant funds for that purpose to appropriate
requirements in the Endowment Challenge Grant Program.
We implemented the Endowment Challenge Grant Program requirements
in regulations contained in 34 CFR part 628. In the Federal Register of
March 21, 2000, (65 FR 15115-15118) we proposed to subject grantees'
use of grant funds for endowments under the Strengthening Institutions,
[[Page 79310]]
Strengthening Historically Black Colleges and Universities, and
Developing Hispanic Serving-Institutions Programs to the following
Endowment Challenge Grant Program regulatory provisions: Secs. 628.3,
628.6, 628.10, and 628.41 through 628.47.We revised the definition of
the term ``endowment fund income'' to clarify that endowment fund
income includes fund appreciation and retained fund interest and
dividends. We revised the institutional match requirement to reflect
the statutory requirement that the match must be made on at least a
one-to-one basis, that is, each grant dollar to be used for endowment
purposes must be matched with at least one non-Federal dollar. Finally,
if an institution decides to use grant funds for endowment fund
purposes it must immediately match those grant funds with non-Federal
dollars.
These proposals were included in Sec. 606.10(d) for the Developing
Hispanic-Serving Institutions Program, Sec. 607.10(d) for the
Strengthening Institutions Program, and Sec. 608.10(d) for the
Strengthening Historically Black Colleges and Universities Program.
Changes from Proposed Regulations
On March 21, 2000, we published a notice of proposed rulemaking
(NPRM) for these programs in the Federal Register (65 FR 15115). No
comments were received on the proposed regulations. Except for minor
editorial revisions, including the addition of specific references to
the American Indian Tribally Controlled Colleges and Universities
Program to clarify that these provisions are applicable to that
program, there are no differences between the NPRM and these final
regulations.
Paperwork Reduction Act of 1995
These proposed regulations do not contain any information
collection requirements.
Intergovernmental Review
These programs are subject to Executive Order 12372 and the
regulations in 34 CFR part 79. One of the objectives in 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.
Assessment of Educational Impact
In the NPRM we requested comments on whether the proposed
regulations would require transmission of information that any other
agency or authority of the United States gathers or makes available.
Based on the response to the NPRM and on our review, we have
determined that these final regulations do not require transmission of
information that any other agency or 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 either of the
following sites: http://ocfo.ed.gov/fedreg.htm; http://www.ed.gov/news.html.
To use PDF you must have Adobe Acrobat Reader, which is available
free at either of the previous sites. If you have questions about using
PDF, call the U.S. Government Printing Office (GPO), toll free, at 1-
888-293-6498; or in the Washington, DC area at (202) 512-1530.
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: 84.031S, 84.031A,
and 84.031B)
List of Subjects in 34 CFR Parts 606, 607, and 608
Colleges and universities, Grant programs-education, Reporting and
recordkeeping requirements.
Dated: December 12, 2000.
A. Lee Fritschler,
Assistant Secretary, Office of Postsecondary Education.
For the reasons discussed in the preamble, the Secretary amends
title 34 of the Code of Federal Regulations by amending parts 606, 607,
and 608 as follows:
PART 606--DEVELOPING HISPANIC-SERVING INSTITUTIONS PROGRAM
1. The authority citation for part 606 continues to read as
follows:
Authority: 20 U.S.C. 1101 et seq., unless otherwise noted.
2. Section 606.10 is amended by adding a new paragraph (d) to read
as follows:
Sec. 606.10 What activities may and may not be carried out under a
grant?
* * * * *
(d) Endowment funds. If a grantee uses part of its grant funds to
establish or increase an endowment fund, it must comply with the
provisions of Secs. 628.3, 628.6, 628.10, and 628.41 through 628.47 of
this chapter with regard to the use of those funds, except--
(1) The definition of the term ``endowment fund income'' in
Sec. 628.6 of this chapter does not apply. For the purposes of this
paragraph (d), ``endowment fund income'' means an amount equal to the
total value of the fund, including fund appreciation and retained
interest and dividends, minus the endowment fund corpus;
(2) Instead of the requirement in Sec. 628.10(a) of this chapter,
the grantee institution must match each dollar of Federal grant funds
used to establish or increase an endowment fund with one dollar of non-
Federal funds; and
(3) Instead of the requirements in Sec. 628.41(a)(3) through (a)(5)
and the introductory text in Sec. 628.41(b) and Sec. 628.41(b)(2) and
(b)(3) of this chapter, if a grantee institution decides to use any of
its grant funds for endowment purposes, it must match those grant funds
immediately with non-Federal funds when it places those funds into its
endowment fund.
PART 607--STRENGTHENING INSTITUTIONS PROGRAM
3. The authority citation for part 607 continues to read as
follows:
Authority: 20 U.S.C. 1057-1059c, 1066-1069f, unless otherwise
noted.
4. Section 607.10 is amended by adding a new paragraph (d) to read
as follows:
Sec. 607.10 What activities may and may not be carried out under a
grant?
* * * * *
(d) Endowment funds. If a grantee uses part of its grant funds to
establish or increase an endowment fund under paragraphs (b)(11) or
(b)(13)(xiii) of this section, it must comply with the provisions of
Secs. 628.3, 628.6, 628.10 and 628.41 through 628.47 of this chapter
with regard to the use of those funds, except--
(1) The definition of the term ``endowment fund income'' in
Sec. 628.6 of this chapter does not apply. For the purposes of this
paragraph (d), ``endowment fund income'' means an amount equal to the
total value of the fund, including fund appreciation and retained
interest and dividends, minus the endowment fund corpus.
[[Page 79311]]
(2) Instead of the requirement in Sec. 628.10(a) of this chapter,
the grantee institution must match each dollar of Federal grant funds
used to establish or increase an endowment fund with one dollar of non-
Federal funds; and
(3) Instead of the requirements in Sec. 628.41(a)(3) through (a)(5)
and the introductory text in Sec. 628.41(b) and Sec. 628.41(b)(2) and
(b)(3) of this chapter, if a grantee institution decides to use any of
its grant funds for endowment purposes, it must match those grant funds
immediately with non-Federal funds when it places those funds into its
endowment fund.
PART 608--STRENGTHENING HISTORICALLY BLACK COLLEGES AND
UNIVERSITIES PROGRAM
5. The authority citation for part 608 continues to read as
follows:
Authority: 20 U.S.C. 1060 through 1063a, 1063c, 1066, 1068,
1069c, 1069d, and 1069f, unless otherwise noted.
6. Section 608.10 is amended by adding a new paragraph (d) to read
as follows:
Sec. 608.10 What activities may be carried out under a grant?
* * * * *
(d) Endowment funds. If a grantee uses part of its grant funds to
establish or increase an endowment fund, it is subject to the
provisions of Secs. 628.3, 628.6, 628.10 and 628.41 through 628.47 of
this chapter with regard to the use of those funds, except--
(1) The definition of the term ``endowment fund income'' in
Sec. 628.6 of this chapter does not apply. For the purposes of this
paragraph (d), ``endowment fund income'' means an amount equal to the
total value of the fund, including fund appreciation and retained
interest and dividends, minus the endowment fund corpus;
(2) Instead of the requirement in Sec. 628.10(a) of this chapter,
the grantee institution must match each dollar of Federal grant funds
used to establish or increase an endowment fund with one dollar of non-
Federal funds; and
(3) Instead of the requirements in Sec. 628.41(a)(3) through (a)(5)
and the introductory text in Sec. 628.41(b) and Sec. 628.41(b)(2) and
(b)(3) of this chapter, if a grantee institution decides to use any of
its grant funds for endowment purposes, it must match those grant funds
immediately with non-Federal funds when it places those funds into its
endowment fund.
[FR Doc. 00-32199 Filed 12-18-00; 8:45 am]
BILLING CODE 4000-01-P