[Federal Register Volume 68, Number 189 (Tuesday, September 30, 2003)]
[Proposed Rules]
[Pages 56418-56423]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 03-24292]
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Part VI
Department of Education
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34 CFR Parts 74, 75, 76, and 80
Direct Grant Programs; State-Administered Programs; Administration of
Grants and Agreements With Institutions of Higher Education, Hospitals,
and Other Non-Profit Organizations; and Uniform Administrative
Requirements for Grants and Cooperative Agreements to State and Local
Governments; Proposed Rule
Federal Register / Vol. 68, No. 189 / Tuesday, September 30, 2003 /
Proposed Rules
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DEPARTMENT OF EDUCATION
34 CFR Parts 74, 75, 76, and 80
RIN 1890-AA11
Direct Grant Programs; State-Administered Programs;
Administration of Grants and Agreements With Institutions of Higher
Education, Hospitals, and Other Non-Profit Organizations; and Uniform
Administrative Requirements for Grants and Cooperative Agreements to
State and Local Governments
AGENCY: Center for Faith-Based and Community Initiatives, Office of the
Secretary, U.S. Department of Education.
ACTION: Notice of proposed rulemaking.
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SUMMARY: The Secretary proposes to amend the Education Department
General Administrative Regulations (EDGAR) governing direct grant
programs; State-administered programs; the administration of grants and
agreements with institutions of higher education, hospitals, and other
non-profit organizations; and the uniform administrative requirements
for grants and cooperative agreements to State and local governments.
The amendments are intended to clarify that faith-based organizations
are eligible to participate in programs on the same basis as any other
private organization, with respect to programs for which such other
organizations are eligible.
DATES: We must receive your comments on or before December 1, 2003.
ADDRESSES: Address all comments about these proposed regulations to
John J. Porter, Director, Center for Faith-Based and Community
Initiatives, Office of the Secretary, U.S. Department of Education, 555
New Jersey Avenue, NW., suite 410, Washington, DC 20208-8300. You may
also fax your comments to (202) 208-1689.
If you prefer to send your comments through the Internet, use the
following address: [email protected].
You must include the term ``proposed rule'' in the subject line of
your electronic message.
FOR FURTHER INFORMATION CONTACT: John J. Porter. Telephone: (202) 219-
1741.
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 under FOR FURTHER
INFORMATION CONTACT.
SUPPLEMENTARY INFORMATION:
Invitation To Comment
We invite you to submit comments regarding these proposed
regulations. To ensure that your comments have maximum effect in
developing the final regulations, we urge you to identify clearly the
specific section or sections and paragraph or paragraphs of the
proposed regulations that each of your comments addresses and to
arrange your comments in the same order as the proposed regulations.
We invite you to assist us in complying with the specific
requirements of Executive Order 12866 and its overall requirement of
reducing the regulatory burden that might result from these proposed
regulations. Please let us know of any further opportunities we should
take to reduce potential costs or increase potential benefits while
preserving the effective and efficient administration of the
Department's programs.
During and after the comment period, you may inspect all public
comments about these proposed regulations in suite 410, 555 New Jersey
Avenue, NW., Washington, DC, between the hours of 8:30 a.m. and 4 p.m.,
Eastern time, Monday through Friday of each week except Federal
holidays.
Assistance to Individuals With Disabilities in Reviewing the Rulemaking
Record
On request, we will supply an appropriate aid, such as a reader or
print magnifier, to an individual with a disability who needs
assistance to review the comments or other documents in the public
rulemaking record for these proposed regulations. If you want to
schedule an appointment for this type of aid, please contact the person
listed under FOR FURTHER INFORMATION CONTACT.
Background
Faith-based organizations make an important contribution to the
education of Americans and provide an important part of the social
services network of the United States. Faith-based organizations acting
alone or in partnership with public schools, community-based
organizations, institutions of higher education, and other private
organizations do much good work to advance the quality of education for
all Americans. Often this good work of faith-based organizations is
done despite meager resources, and in the past, it has generally been
done without the assistance of the Federal Government.
The Department seeks to facilitate the contribution of faith-based
and community organizations to increase the effectiveness of its
programs and to provide equal access to a quality education for all
Americans. We believe this will strengthen the effort to make sure that
no child is left behind.
President Bush has directed Federal agencies, including this
Department, to take steps to ensure that Federal policies and programs
are fully open to faith-based organizations in a manner that is
consistent with the U.S. Constitution and statutory requirements. The
Administration believes that faith-based organizations possess an
under-appreciated ability to meet the educational needs of
disadvantaged children and to strengthen our system of education. The
Administration believes that Federal agencies should ensure that there
is equal opportunity for all private organizations, faith-based and
secular, to use Federal resources to meet the needs of their
communities.
President Bush has signed two Executive orders relevant to the
Department's efforts on the faith-based and community initiative.
Executive Order 13198, dated January 29, 2001, directs the Department
to identify and eliminate regulatory and other programmatic obstacles
to the full contribution of faith-based and community groups in order
to increase the effectiveness of the Department's programs. Executive
Order 13279, dated December 12, 2002, directs the Department to review
and evaluate existing policies that have implications for faith-based
and community organizations in order to assess the consistency of those
policies with certain fundamental principles and policymaking criteria
designed to ensure a level playing field for religious and nonreligious
organizations. The order directs the Department, to the extent
permitted by law, (1) to amend all such existing policies to ensure
that they are consistent with the fundamental principles and
policymaking criteria; (2) where appropriate, to implement new policies
that are consistent with and necessary to further the fundamental
principles and policymaking criteria; and (3) to implement new policies
that are necessary to ensure that the Department collects data
regarding the participation of faith-based and community organizations
in social service programs that receive Federal financial assistance.
This proposed amendment to the Department's regulations is part of its
effort to comply with these Executive orders.
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Significant Proposed Regulations
Current Regulations. Current program eligibility regulations at 34
CFR parts 75 and 76 do not state specifically that faith-based
organizations are eligible to apply for and to receive funding under
Department of Education programs on the same basis as other private
organizations, with respect to programs for which such organizations
are eligible. Similarly, current procurement regulations at 34 CFR
parts 74 and 80 do not state specifically that faith-based
organizations are eligible to contract with or otherwise receive
assistance from grantees and subgrantees on the same basis as other
private organizations, with respect to contracts or assistance for
which such organizations are eligible.
Proposed Regulations and Reasons. Proposed Sec. Sec. 75.52
(Eligibility of faith-based organizations for a grant) and 76.52
(Eligibility of faith-based organizations for a subgrant) state
specifically that faith-based organizations are eligible to apply for
and to receive funding under Department of Education programs on the
same basis as any other private organization, with respect to programs
for which such other organizations are eligible.
The Department seeks to clarify that the most qualified applicants
will receive funding under the Department's programs, and that the
religious character or affiliation of the private organizations that
apply will not be taken into account. For that reason, the Department
is additionally proposing the removal of Sec. Sec. 75.532(a)(4),
(b)(1) and (2) and 76.532(a)(4), (b)(1) and (2), which prohibit
grantees and subgrantees, respectively, from using their grants and
subgrants to pay for an activity of a school or department of divinity.
In addition, to clarify that grantees may not use their grants to
pay for equipment or supplies used for religious worship, instruction,
or proselytization, the Department is proposing a technical amendment
to Sec. 75.532(a)(2).
Moreover, although the Department believes that grantees and
subgrantees may use their grants and subgrants to pay for construction,
remodeling, repair, operation, or maintenance of any facility or part
of a facility only to the extent that such facilities are used for
eligible Department-funded activities (and not for inherently religious
activities such as religious worship, instruction, or proselytization,
or any other ineligible purpose), the Department is proposing simply to
remove Sec. Sec. 75.532(a)(3) and 76.532(a)(3) because there is no
statutory authority under which a grantee or subgrantee may use its
grants and subgrants for construction, remodeling, repair, operation,
or maintenance of any private educational facility (or part of a
private educational facility). Because no Department program funds
capital improvements for any such facility, these regulations have no
application and are unnecessary.
Lastly, the Department is proposing to add a new paragraph (f) to
Sec. 74.44 and a new paragraph (j) to Sec. 80.36 to clarify that
faith-based organizations are eligible to contract with and otherwise
receive assistance from grantees and subgrantees, including States, on
the same basis as other private organizations, with respect to
contracts or assistance for which such organizations are eligible. The
proposed paragraphs state that such faith-based organizations are
subject to the same limitations to which grantees and subgrantees are
subject regarding the use of Department funds for inherently religious
activities, unless the organization is selected as a result of the
genuine and independent private choice of the beneficiary of the
program and provided the organization otherwise satisfies the
requirements of the program.
Proposed Sec. Sec. 75.52 (Eligibility of Faith-Based Organizations for
a Grant) and 76.52 (Eligibility of Faith-Based Organizations for a
Subgrant)
Proposed paragraph (a)--Participation by faith-based organizations
in the Department's programs. This paragraph clarifies that a faith-
based organization is eligible to participate in the Department's
direct grant programs (proposed Sec. 75.52) and State-administered
programs (proposed Sec. 76.52) on the same basis as any other private
organization, with respect to programs for which such other
organizations are eligible. If a faith-based organization meets the
statutory and regulatory tests for eligibility, the Department
considers it eligible. The inclusion of qualified faith-based
organizations increases the pool of potential applicants and enhances
competition. As a result, the inclusion of qualified faith-based
organizations increases the quantity of highly qualified applicants
that are eligible to receive Federal funding, contributing to an
increase in effectiveness of the Department's programs, a savings of
Federal dollars, the generation of new ideas, and the provision of
services to people who may not otherwise receive them. The Department
needs the contribution of qualified faith-based organizations that
serve in areas of great need and that have strong ties to the community
to achieve the Department's goal of ensuring that no child is left
behind.
Consistent with this principle, the paragraph additionally provides
that the Department and the States shall not discriminate against a
private organization on the basis of the organization's religious
character or affiliation.
Proposed paragraph (b)--Prohibition on use of funds for inherently
religious activities. This paragraph clarifies that a faith-based
organization that receives a grant under a program of the Department
(proposed Sec. 75.52) or a subgrant from a State under a State-
administered program of the Department (proposed Sec. 76.52) is
subject to the provisions of Sec. Sec. 75.532 and 76.532,
respectively. Those sections prohibit grantees (Sec. 75.532) and
States and subgrantees (Sec. 76.532) from using their grants and
subgrants to pay for inherently religious activities, such as religious
worship, instruction, or proselytization; and for equipment or supplies
used for religious worship, instruction, or proselytization. Sections
75.532 and 76.532 also currently prohibit grantees and subgrantees from
using their grants and subgrants to pay for construction, remodeling,
repair, operation, or maintenance of any facility or part of a facility
to be used for religious worship, instruction, or proselytization; and
an activity of a school or department of divinity, as so defined. As
explained above, however, the Department seeks to eliminate those
provisions elsewhere in these proposed regulations.
Proposed paragraph (c)--Inherently religious activities that must
be offered separately in time or location and be voluntary. This
paragraph clarifies that a private organization that engages in
inherently religious activities, such as religious worship,
instruction, or proselytization, must offer those services separately
in time or location from any programs or services supported by grants
from the Department (proposed Sec. 75.52) or subgrants from a State
under a State-administered program of the Department (proposed Sec.
76.52), and that participation in any such inherently religious
activities by beneficiaries of the programs supported by the grants or
subgrants must be voluntary.
The religious liberties of program beneficiaries must be guarded.
No one should be coerced into participating in inherently religious
activities to receive federally funded services. Thus, the inherently
religious activities of faith-based groups must be separated by time
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or location from the programs or services supported by grants from the
Department or subgrants from a State under a State-administered program
of the Department, and participation in such inherently religious
activities by beneficiaries of the program supported by the grants or
subgrants must be voluntary.
Proposed paragraph (d)--Faith-based organizations may retain their
religious character. The restrictions on the use of grants and
subgrants for inherently religious activities do not prohibit faith-
based organizations from engaging in inherently religious activities.
The restrictions only prohibit such funds from being used to support
these activities. This paragraph clarifies that a faith-based
organization does not have to suppress its religious identity to
qualify for a grant or subgrant.
A faith-based organization that applies for or receives a grant or
subgrant may maintain its character and independence, including the
definition, practice, and expression of its religious beliefs, provided
that it does not use the grant or subgrant to support inherently
religious activities. Many faith-based organizations are concerned that
they must give up their religious identity to receive Federal funding
and, as a result, have not sought opportunities to use Federal funds to
meet needs in their communities. This concern has served as a barrier
to facilitating the contribution of faith-based organizations to aid
the Department in achieving its goal of making programs more effective.
The Federal Government does not ask other types of private
organizations to compromise their philosophical identity or ideology to
receive Federal funds so the Department does not require faith-based
organizations to compromise their philosophical identity or ideology
either. Faith-based organizations, like other private organizations,
must use the Federal funds for the purpose of the applicable program.
Clarifying that faith-based organizations do not have to suppress their
religious identity encourages them to participate in the Department's
programs and contributes to increasing the effectiveness of the
Department's programs.
Proposed paragraph (e)--Prohibition on discrimination against
program beneficiaries or prospective program beneficiaries on the basis
of religion. This paragraph prohibits discrimination by private
organizations against beneficiaries or prospective beneficiaries of the
Department's programs on the basis of religion. One who administers or
delivers services to such beneficiaries (e.g., an employee or
prospective employee of a grantee or subgrantee) is not considered a
``beneficiary'' or ``prospective beneficiary'' for purposes of this
provision.
Proposed paragraph (f)--Effect of contribution of own funds. In the
case of grants or subgrants that require fund matching, the
Department's regulations stipulate that Federal rules apply to those
matching funds. In addition, in cases where grantees and subgrantees
pledge to contribute their own funding in excess of matching funds
required under the grant or subgrant announcement, those excess funds
pledged in the grant or subgrant application are considered part of a
``grant agreement'' and are therefore also subject to Federal rules.
If a grantee or subgrantee provides funds in excess of those funds
stipulated in grant or subgrant matching requirements or agreements,
Federal rules will not apply to the extent that those excess funds are
not commingled with the funds stipulated in the matching requirements
or agreement. If the excess funds are separated from those ``required''
funds, they will not be subject to Federal rules. If those excess funds
are not kept separate from the ``required'' funds, they will be subject
to Federal rules.
Technical amendment to Sec. 75.532(a)(2) relating to the
prohibition on use of grants to pay for equipment or supplies to be
used for religious worship, instruction, or proselytization.
To clarify that grantees cannot use their grants to pay for
equipment or supplies used for religious worship, instruction, or
proselytization, the Department is proposing a technical amendment to
Sec. 75.532(a)(2). The Department believes that no clarification is
needed for Sec. 76.532(a)(2) relating to States and subgrantees.
Removal of Sec. Sec. 75.532(a)(3) and 76.532(a)(3) relating to the
prohibition on use of grants and subgrants to pay for construction,
remodeling, repair, operation, or maintenance of any facility or part
of a facility to be used for religious worship, instruction, or
proselytization.
The Department believes that grantees and subgrantees may use their
grants and subgrants to pay for construction, remodeling, repair,
operation, or maintenance of any facility or part of a facility only to
the extent that such facilities are used for eligible Department-funded
activities (and not for inherently religious activities such as
religious worship, instruction, or proselytization, or any other
ineligible purpose). The Department is nevertheless proposing the
removal of Sec. Sec. 75.532(a)(3) and 76.532(a)(3) because there is no
statutory authority for grantees and subgrantees to use their grants
and subgrants for construction, remodeling, repair, operation, or
maintenance of any private educational facility (or part of a private
educational facility). The Department accordingly has no programs that
fund such capital improvements. Therefore, rather than amend these
provisions to clarify the limitations under which grantees and
subgrantees could use their grants and subgrants if such statutory
authority existed, the Department proposes simply to remove these
provisions. If and when such uses are authorized by statute, the
Department will issue program-specific regulations in accordance with
the statute.
Removal of Sec. Sec. 75.532(a)(4), (b)(1) and (2) and
76.532(a)(4), (b)(1) and (2) relating to the prohibition on use of
grants and subgrants to pay for an activity of a school or department
of divinity.
Consistent with the principle that faith-based organizations are
eligible to apply for and to receive funding under Department of
Education programs on the same basis as any other private organization,
with respect to programs for which such other organizations are
eligible, the Department is additionally proposing the removal of
Sec. Sec. 75.532(a)(4), (b)(1) and (2) and 76.532(a)(4), (b)(1) and
(2), which prohibit grantees and subgrantees, respectively, from using
their grants and subgrants to pay for an activity of a school or
department of divinity. Grantees and subgrantees that use their grants
and subgrants to pay for such an activity will still be subject to
Sec. Sec. 75.532(a) and 76.532(a), which prohibit them from using
their grants and subgrants to pay for (1) religious worship,
instruction, or proselytization, and (2) equipment or supplies to be
used for those activities. To the extent that they perform eligible
activities, however, they need not be disqualified from participating
in Federal programs simply by virtue of their status as religious
schools or departments.
Proposed Sec. Sec. 74.44(f) (Procurement Procedures) and 80.36(j)
(Procurement)
Lastly, the Department seeks to clarify that faith-based
organizations are eligible to contract with or otherwise receive
assistance from grantees and subgrantees, including States, on the same
basis as other private organizations, with respect to contracts or
assistance for which such organizations are eligible. Such faith-based
organizations are subject to the same limitations to which grantees and
subgrantees are subject regarding the
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use of funds for inherently religious activities, unless the
organization is selected as a result of the genuine and independent
private choice of the beneficiary of the program and provided the
organization otherwise satisfies the requirements of the program. For
example, a supplemental educational service provider that contracts
with or otherwise receives assistance from a subgrantee pursuant to
section 1116 of the Elementary and Secondary Education Act of 1965, as
amended by the No Child Left Behind Act of 2001, is not subject to the
same limitations to which grantees and subgrantees are subject
regarding the use of funds for inherently religious activities because
the provider, by statute, is selected as a result of the genuine and
independent private choice of the parent of an eligible child. However,
the provider must still satisfy all applicable statutory requirements.
Executive Order 12866
1. Potential Cost and Benefits
Under Executive Order 12866, we have assessed the potential costs
and benefits of this regulatory action.
The potential costs associated with the proposed regulations are
minimal and arise from statutory requirements and those we have
determined to be necessary for administering the Department's programs
effectively and efficiently.
In assessing the minimal potential costs and substantial benefits--
both quantitative and qualitative--of this regulatory action, we have
determined that the benefits would justify the costs.
We have also determined that this regulatory action would not
unduly interfere with State, Local, and Tribal governments in the
exercise of governmental functions.
Summary of Potential Costs and Benefits
These proposed regulations would not add significantly to the costs
of implementing the Department's programs, but will significantly
increase the benefits that the Secretary believes will be obtained
through successful implementation.
As noted elsewhere in this preamble, the proposed regulations would
increase the pool of potential applicants from which the Department may
select grantees, the States may select subgrantees, and grantees and
subgrantees may select entities with which to contract or otherwise
provide assistance, thereby increasing the quantity of highly qualified
private organizations that are eligible to receive Federal funding. The
proposed regulations will enable the Department to facilitate the
contribution of faith-based organizations to increase the effectiveness
of the Department's programs. The proposed regulations will also ensure
that Federal funds are used only for proper purposes and clarify for
faith-based organizations, the Department, and the public the rules for
using Federal funds.
The existing procedures for ensuring that Federal funds will be
used for proper purposes will be used to ensure that funds are not
diverted to improper purposes. The Department will employ its standard
procedures for monitoring grantees that it would employ even if the
proposed regulations were not promulgated. For purposes of the Unfunded
Mandates Reform Act of 1995, these regulations do not include a Federal
mandate that might result in increased expenditures by State, local,
and tribal governments, or increased expenditures by the private sector
of more than $100 million in any one year.
2. Clarity of the Regulations
Executive Order 12866 and the Presidential memorandum on ``Plain
Language in Government Writing'' require each agency to write
regulations that are easy to understand.
The Secretary invites comments on how to make these proposed
regulations easier to understand, including answers to questions such
as the following:
[sbull] Are the requirements in the proposed regulations clearly
stated?
[sbull] Do the proposed regulations contain technical terms or
other wording that interferes with their clarity?
[sbull] Does the format of the proposed regulations (grouping and
order of sections, use of headings, paragraphing, etc.) aid or reduce
their clarity?
[sbull] Would the proposed regulations be easier to understand if
we divided them into more (but shorter) sections? (A ``section'' is
preceded by the symbol ``Sec. '' and a numbered heading: for example,
Sec. 75.52 Eligibility of faith-based organizations for a grant.)
[sbull] Could the description of the proposed regulations in the
SUPPLEMENTARY INFORMATION section of this preamble be more helpful in
making the proposed regulations easier to understand? If so, how?
[sbull] What else could we do to make the proposed regulations
easier to understand?
Send any comments that concern how the Department could make these
proposed regulations easier to understand to the person listed in the
ADDRESSES section of the preamble.
Regulatory Flexibility Act Certification
The Secretary certifies that these proposed regulations would not
have a significant economic impact on a substantial number of small
entities. These proposed regulations require the Department and States
to administer grant programs in accordance with constitutional
standards and to maximize the efficiency and productivity of such
programs. States are not considered small entities under the Regulatory
Flexibility Act.
Paperwork Reduction Act of 1995
These proposed regulations do not require any additional
information collection requirements.
Intergovernmental Review
These proposed regulations affect direct grant programs that 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 to strengthen 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
The Secretary particularly requests comments on whether these
proposed regulations would 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 the following site:
http://www.ed.gov/news/fedregister.
To use PDF you must have Adobe Acrobat Reader, which is available
free at this site. 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 Number does not apply.)
[[Page 56422]]
List of Subjects
34 CFR Part 74
Accounting, Grant programs, Reporting and recordkeeping
requirements.
34 CFR Part 75
Accounting, Administrative practice and procedure, Education, Grant
programs--Education, Private schools, Reporting and recordkeeping
requirements.
34 CFR Part 76
Administrative practice and procedure, Compliance, Eligibility,
Grant administration, Reporting and recordkeeping requirements.
34 CFR Part 80
Accounting, Grant programs, Reporting and recordkeeping
requirements.
Dated: September 22, 2003.
Rod Paige,
Secretary of Education.
For the reasons stated in the preamble, the Secretary proposes to
amend parts 74, 75, 76, and 80 of title 34 of the Code of Federal
Regulations as follows:
PART 75--DIRECT GRANT PROGRAMS
1. The authority citation for Part 75 continues to read as follows:
Authority: 20 U.S.C. 1221e-3 and 3474, unless otherwise noted.
2. A new Sec. 75.52 is added to subpart A under the heading
``Eligibility for a Grant'' to read as follows:
Sec. 75.52 Eligibility of faith-based organizations for a grant.
(a)(1) A faith-based organization is eligible to apply for and to
receive a grant under a program of the Department on the same basis as
any other private organization, with respect to programs for which such
other organizations are eligible.
(2) The Department shall not discriminate against a private
organization on the basis of the organization's religious character or
affiliation.
(b) The provisions of Sec. 75.532 apply to a faith-based
organization that receives a grant under a program of the Department.
(c) A private organization that engages in inherently religious
activities, such as religious worship, instruction, or proselytization,
must offer those services separately in time or location from any
programs or services supported by a grant from the Department, and
participation in any such inherently religious activities by
beneficiaries of the programs supported by the grant must be voluntary.
(d)(1) A faith-based organization that applies for or receives a
grant under a program of the Department may retain its independence,
autonomy, right of expression, religious character, and authority over
its governance.
(2) A faith-based organization may, among other things--
(i) Retain religious terms in its name;
(ii) Continue to carry out its mission, including the definition,
development, practice, and expression of its religious beliefs;
(iii) Use its facilities to provide services without removing or
altering religious art, icons, scriptures, or other symbols from these
facilities;
(iv) Select its board members and otherwise govern itself on a
religious basis; and
(v) Include religious references in its mission statement and other
chartering or governing documents.
(e) A private organization that receives a grant under a program of
the Department shall not discriminate against a beneficiary or
prospective beneficiary of that program on the basis of religion or
religious belief.
(f) If a grantee contributes its own funds in excess of those funds
required by a matching or grant agreement to supplement Federally
funded activities, the grantee has the option to segregate those
additional funds or commingle them with the funds required by the
matching requirements or grant agreement. However, if the additional
funds are commingled, this section applies to all of the commingled
funds.
(Authority: 20 U.S.C. 1221e-3 and 3474)
3. Section 75.532(a)(2) is revised to read as set forth below;
paragraphs (a)(3) and (4) are removed; and paragraph (b) is removed and
reserved.
Sec. 75.532 Use of funds for religion prohibited.
(a) * * *
(2) Equipment or supplies to be used for any of the activities
specified in paragraph (a)(1) of this section.
(b) [Reserved]
PART 76--STATE-ADMINISTERED PROGRAMS
4. The authority citation for part 76 continues to read as follows:
Authority: 20 U.S.C. 1221e-3, 3474, 6511(a), and 8065a, unless
otherwise noted.
5. A new Sec. 76.52 is added to subpart A under the heading
``Eligibility for a Grant or Subgrant'' to read as follows:
Sec. 76.52 Eligibility of faith-based organizations for a subgrant.
(a)(1) A faith-based organization is eligible to apply for and to
receive a subgrant under a program of the Department on the same basis
as any other private organization, with respect to programs for which
such other organizations are eligible.
(2) States shall not discriminate against a private organization on
the basis of the organization's religious character or affiliation.
(b) The provisions of Sec. 76.532 apply to a faith-based
organization that receives a subgrant from a State under a State-
administered program of the Department.
(c) A private organization that engages in inherently religious
activities, such as religious worship, instruction, or proselytization,
must offer those services separately in time or location from any
programs or services supported by a subgrant from a State under a
State-administered program of the Department, and participation in any
such inherently religious activities by beneficiaries of the programs
supported by the subgrant must be voluntary.
(d)(1) A faith-based organization that applies for or receives a
subgrant from a State under a State-administered program of the
Department may retain its independence, autonomy, right of expression,
religious character, and authority over its governance.
(2) A faith-based organization may, among other things--
(i) Retain religious terms in its name;
(ii) Continue to carry out its mission, including the definition,
development, practice, and expression of its religious beliefs;
(iii) Use its facilities to provide services without removing or
altering religious art, icons, scriptures, or other symbols from these
facilities;
(iv) Select its board members and otherwise govern itself on a
religious basis; and
(v) Include religious references in its mission statement and other
chartering or governing documents.
(e) A private organization that receives a subgrant from a State
under a State-administered program of the Department shall not
discriminate against a beneficiary or prospective beneficiary of that
program on the basis of religion or religious belief.
(f) If a State or subgrantee contributes its own funds in excess of
those funds required by a matching or grant
[[Page 56423]]
agreement to supplement federally funded activities, the State or
subgrantee has the option to segregate those additional funds or
commingle them with the funds required by the matching requirements or
grant agreement. However, if the additional funds are commingled, this
section applies to all of the commingled funds.
(Authority: 20 U.S.C. 1221e-3, 3474, and 6511(a))
Sec. 76.532 [Amended]
6. Section 76.532 is amended by removing (a)(3) and (a)(4); and
removing and reserving (b).
PART 74--ADMINISTRATION OF GRANTS AND AGREEMENTS WITH INSTITUTIONS
OF HIGHER EDUCATION, HOSPITALS, AND OTHER NON-PROFIT ORGANIZATIONS
7. The authority citation for part 74 continues to read as follows:
Authority: 20 U.S.C. 1221e-3 and 3474, OMB Circular A-110,
unless otherwise noted.
8. Section 74.44 is amended by adding new paragraph (f) to read as
follows:
Sec. 74.44 Procurement procedures.
* * * * *
(f)(1)(i) A faith-based organization is eligible to contract with
or otherwise receive assistance from recipients on the same basis as
any other private organization, with respect to contracts or assistance
for which such other organizations are eligible.
(ii) Recipients shall not discriminate against a private
organization on the basis of the organization's religious character or
affiliation.
(2) The provisions of Sec. Sec. 75.532 and 76.532 applicable to
grantees and subgrantees apply to a faith-based organization that
contracts with or otherwise receives assistance from a recipient,
unless the faith-based organization is selected as a result of the
genuine and independent private choice of the beneficiary of the
program and provided the organization otherwise satisfies the
requirements of the program.
(3) A private organization that engages in inherently religious
activities, such as religious worship, instruction, or proselytization,
must offer those services separately in time or location from any
programs or services supported by a contract with or assistance
received from a recipient and participation in any such inherently
religious activities by beneficiaries of the programs supported by the
contract or assistance must be voluntary, unless the organization is
selected as a result of the genuine and independent private choice of
the beneficiary of the program and provided the organization otherwise
satisfies the requirements of the program.
(4)(i) A faith-based organization that contracts with or otherwise
receives assistance from a recipient may retain its independence,
autonomy, right of expression, religious character, and authority over
its governance.
(ii) A faith-based organization may, among other things--
(A) Retain religious terms in its name;
(B) Continue to carry out its mission, including the definition,
development, practice, and expression of its religious beliefs;
(C) Use its facilities to provide services without removing or
altering religious art, icons, scriptures, or other symbols from these
facilities;
(D) Select its board members and otherwise govern itself on a
religious basis; and
(E) Include religious references in its mission statement and other
chartering or governing documents.
(5) A private organization that contracts with or otherwise
receives assistance from a recipient shall not discriminate against a
beneficiary or prospective beneficiary of the program on the basis of
religion or religious belief.
PART 80--UNIFORM ADMINISTRATIVE REQUIREMENTS FOR GRANTS AND
COOPERATIVE AGREEMENTS TO STATE AND LOCAL GOVERNMENTS
9. The authority citation for part 80 continues to read as follows:
Authority: 20 U.S.C. 1221e-3(a)(1) and 3474, OMB Circular A-102,
unless otherwise noted.
10. Section 80.36 is amended by adding new paragraph (j) to read as
follows:
Sec. 80.36 Procurement.
* * * * *
(j) Contracting with faith-based organizations. (1)(i) A faith-
based organization is eligible to contract with or otherwise receive
assistance from grantees and subgrantees, including States, on the same
basis as any other private organization, with respect to contracts or
assistance for which such other organizations are eligible.
(ii) Grantees and subgrantees, including States, shall not
discriminate against a private organization on the basis of the
organization's religious character or affiliation.
(2) The provisions of Sec. Sec. 75.532 and 76.532 applicable to
grantees and subgrantees apply to a faith-based organization that
contracts with or otherwise receives assistance from a grantee or
subgrantee, including a State, unless the faith-based organization is
selected as a result of the genuine and independent private choice of
the beneficiary of the program and provided the organization otherwise
satisfies the requirements of the program.
(3) A private organization that engages in inherently religious
activities, such as religious worship, instruction, or proselytization,
must offer those services separately in time or location from any
programs or services supported by a contract with or assistance
received from a grantee or subgrantee, including a State, and
participation in any such inherently religious activities by
beneficiaries of the programs supported by the contract or assistance
must be voluntary, unless the organization is selected as a result of
the genuine and independent private choice of the beneficiary of the
program and provided the organization otherwise satisfies the
requirements of the program.
(4)(i) A faith-based organization that contracts with or otherwise
receives assistance from a grantee or subgrantee, including a State,
may retain its independence, autonomy, right of expression, religious
character, and authority over its governance.
(ii) A faith-based organization may, among other things--
(A) Retain religious terms in its name;
(B) Continue to carry out its mission, including the definition,
development, practice, and expression of its religious beliefs;
(C) Use its facilities to provide services without removing or
altering religious art, icons, scriptures, or other symbols from these
facilities;
(D) Select its board members and otherwise govern itself on a
religious basis; and
(E) Include religious references in its mission statement and other
chartering or governing documents.
(5) A private organization that contracts with or otherwise
receives assistance from a grantee or subgrantee, including a State,
shall not discriminate against a beneficiary or prospective beneficiary
of the program on the basis of religion or religious belief.
[FR Doc. 03-24292 Filed 9-29-03; 8:45 am]
BILLING CODE 4000-01-P