Special EducationPersonnel Preparation To Improve Services and Results for Children with Disabilities

DEPARTMENT OF EDUCATION

34 CFR Part 304

RIN 1820-AB46

Special Education--Personnel Preparation To Improve Services and

Results for Children with Disabilities

AGENCY: Office of Special Education and Rehabilitative Services of

Special Education Services, Department of Education.

ACTION: Notice of proposed rulemaking.

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SUMMARY: The Secretary proposes to establish regulations governing

specific provisions of the Personnel Preparation Program to Improve

Services and Results for Children with Disabilities. The regulations

are needed to implement recently enacted changes to the Individuals

with Disabilities Education Act (IDEA or the Act) that were adopted as

part of the IDEA Amendments of 1997. Specifically, the regulations

would establish procedures to implement section 673(h) of IDEA which

requires that individuals who receive a scholarship through personnel

preparation projects funded under the Act must subsequently provide

special education and related services to children with disabilities

(or, for leadership personnel, work in areas related to their

preparation) for a period of two years for every year for which

assistance was received. Scholarship recipients who do not satisfy

their service obligation must repay all or part of the cost of their

assistance in accordance with regulations issued by the Secretary.

These proposed regulations would implement requirements governing,

among other things, the service obligation for scholars, oversight by

grantees, repayment (or ``payback'') of scholarship, and procedures for

obtaining deferrals or exemptions from service or repayment

obligations.

DATES: Comments must be received by the Department on or before

September 8, 1998.

ADDRESSES: All comments concerning these proposed regulations should be

addressed to Sherron Dunmore, U.S. Department of Education, 600

Independence Avenue, SW., Room 4628, Switzer Building, Washington, DC

20202-2641. Comments may also be sent through the Internet:

[email protected]

You must include the term ``payback'' in the subject line of your

electronic message.

Comments that concern information collection requirements must be

sent to the Office of Management and Budget at the address listed in

the Paperwork Reduction Act section of this preamble. A copy of those

comments may also be sent to the Department representative named in

this section.

FOR FURTHER INFORMATION CONTACT: Renee Bradley, U.S. Department of

Education, 600 Independence Avenue, Washington, DC 20202-2641.

Telephone: (202) 358-2849. Individuals who use a telecommunications

device for the deaf (TDD) may call the TDD number at (202) 205-9374

between 8 a.m. and 8 p.m., Eastern time, Monday through Friday.

Individuals with disabilities may obtain this document in an

alternate format (e.g., Braille, large print, audiotape, or computer

diskette) on request to the contact person listed in the preceding

paragraph.

Invitation To Comment

Interested persons are invited to submit comments and

recommendations regarding these proposed regulations. All comments

submitted in response to these proposed regulations will be available

for public inspection, during and after the comment period, in Room

3070, Mary E. Switzer Building, 330 C Street SW, Washington DC, between

the hours of 8:30 a.m. and 4:00 p.m., Eastern time, Monday through

Friday of each week except Federal holidays.

On request the Department supplies 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 docket for these proposed regulations. An individual with a

disability who wants to schedule an appointment for this type of aid

may call (202) 205-8113 or (202) 260-9895. An individual who uses a TDD

may call the Federal Information Relay Service at 1-800-877-8339,

between 8 a.m. and 8 p.m., Eastern time, Monday through Friday.

To assist the Department in complying with the specific

requirements of Executive Order 12866 and its overall requirement of

reducing regulatory burden, the Secretary invites comments on whether

there may be further opportunities to reduce any regulatory burdens

found in these proposed regulations.

SUPPLEMENTARY INFORMATION: IDEA personnel training grants are intended

to increase the number and quality of personnel available to provide

special education and related services to children with disabilities,

to provide early intervention services to infants and toddlers with

disabilities, and their families, and to serve in leadership positions

in special education, related, or early intervention services.

Shortages in school districts across the country of qualified personnel

who can address the educational needs of children with disabilities are

well documented. In the past, however, some individuals who received

financial support through IDEA in order to obtain degrees or other

types of certification subsequently entered careers in which they did

not focus on serving children with disabilities under IDEA.

Section 673(h) of the Act was adopted as part of the IDEA

Amendments of 1997 as a means of ensuring that individuals who receive

scholarships under IDEA-supported personnel training projects provide

special education or related services to children with disabilities

under Part B of the Act or early intervention services to infants and

toddlers with disabilities, and their families, under Part C of the

Act. Similarly, individuals who receive scholarships under IDEA

training projects for leadership personnel must work in an area related

to their preparation. Scholarship recipients who choose not to enter

the special education, related service, or early intervention field are

obligated to pay back their scholarship so that IDEA personnel training

monies may be preserved for purposes of increasing the availability of

individuals qualified to provide services under IDEA.

Subpart A--General

As stated in proposed Sec. 304.1, individuals who receive

scholarship assistance from projects funded under the Personnel

Preparation to Improve Services and Results for Children with

Disabilities Program (program) are required to complete a service

obligation, or repay all or part of the costs of such assistance. The

service requirement included in the proposed regulations would apply to

individuals who receive scholarship assistance from a funded project.

Under the proposed regulations, scholarships could be awarded only to

individuals pursuing degrees, licenses, certifications, or endorsements

related to special education, related services, or early intervention

services. An individual who receives training under an IDEA-funded

personnel preparation project, but does not receive a scholarship from

that project, would not be subject to the service obligation or payback

requirements in the proposed regulations.

Proposed Sec. 304.2, which restates section 673(a) of the Act,

identifies the

[[Page 37467]]

program and the purposes for which the program provides financial

assistance.

Proposed Sec. 304.3 would define key terms used in this part of the

regulations.

The definitions of the terms ``related services'' and ``special

education'' would be the same as those used in Part B of the Act, while

the proposed definition of ``early intervention services'' would be the

same as that used in Part C of the Act.

The proposed definition of ``academic year''--a full-time course of

study taken for a period totaling at least nine months or for the

equivalent of at least two semesters, two trimesters, or three

quarters--is based on the standard term typically used in university

settings.

The proposed regulations would require scholars to work full-time

in a special education, related service, or early intervention position

following their training in order to ensure that scholarship recipients

focus on providing services to children with disabilities during the

period in which they are fulfilling their service obligation. The term

``full-time'' would mean a full-time equivalent position as defined by

the individual's employer or by the agencies served by the individual.

The definition is intended to recognize the wide variety of special

education, related service, or early intervention settings in which

scholars might work subsequent to their training. In some instances, it

should be straightforward to determine whether an individual works for

one employer (e.g., a school or school district) in a full-time

equivalent position or works part-time for multiple employers and the

proportion to a full-time equivalent for each position add up to one

full time-equivalent job. In other instances, particularly when a self-

employed individual provides related services to children with

disabilities under Part B, it may be more difficult to determine

whether the individual works on a full-time basis. In that case, full-

time equivalency would be determined by the school district or agency

with which the individual is associated to provide Part B or Part C

services. Questions as to whether an individual's job or jobs meets the

full-time equivalent requirement shall be determined by the grantee

institution from which the individual received his or her scholarship.

Nonetheless, the Secretary is particularly interested in public comment

on the requirement that IDEA scholars provide special education,

related services, or early intervention services on a full-time basis

and seeks suggestions as to how full-time equivalency should be

measured.

The proposed definition of ``scholarship'' is based on the

definition of that term used in other Department of Education programs,

and would include all disbursements or credits for tuition, fees,

student stipends, and books, and for travel in conjunction with

training assignments.

It should be noted that the term ``scholarship'' does not include

funding to support assistantships for graduate students at institutions

of higher education (IHE). Because funding for graduate assistants is

conditioned on the individual performing work for the IHE, the service

obligation in the proposed regulations does not apply to that type of

financial support. Otherwise, the graduate assistants would be required

to perform dual service obligations: work for the IHE during training

and work in the special education field after training. The Secretary

believes that financial support to students enrolled in IDEA personnel

training projects must be used primarily for scholarship recipients who

will be subject to the service obligation under the Act. Thus, in order

to maximize funds available for scholars who must work in the special

education, related service, or early intervention field, funding for

graduate assistants is not considered ``scholarship'' assistance. IHE

grantees that choose to use IDEA funds to pay graduate assistants to

assist in facilitating or administering projects must classify those

funds as personnel costs in their grant applications rather than as

``scholarship'' or ``student support.''

Subpart B--What Conditions Must Be Met by the Grantee?

Section 304.20 reflects the Secretary's intention to announce for

each personnel training grant competition a specific percentage, up to

75 percent, of a grantee's total award that must be used to support

scholarships. In interpreting the IDEA Amendments of 1997, the

Secretary believes that Congress intended that a large portion of IDEA

personnel training funds be used to support scholarships in order to

ensure that a greater number of qualified individuals will serve

children with disabilities under Parts B and C of the Act. The

Secretary shall determine the appropriate percentage of grant funds

that must be set-aside for scholarships based on the type of projects

that will be funded under a given grant competition and on the

Secretary's interest in maximizing the number of scholars who will

subsequently work in special education, related service, or early

intervention jobs. The proposed provision would allow the Secretary to

award grants that use less than the published percentage to pay for

scholarships in light of the unique nature of a particular project. For

example, a project in which IDEA funds support only university training

expenses, while an additional funding source finances student stipends,

may be exempted from the published percentage. The Secretary notes,

however, that because financial support for graduate assistants is not

considered scholarship assistance (see previous discussion), such costs

may not be paid from the minimum percentage of grant funds that must be

used to support scholarships.

Proposed Sec. 304.21 stipulates the types of costs that would be

allowable under program grants. In short, project funds may be used to

support costs that are allowable under 34 CFR 75.530 through 75.562 of

the Education Department General Administrative Regulations (EDGAR) and

to support scholarships (i.e., tuition, fees, student stipends, and

books, and travel in conjunction with training assignments).

Proposed Sec. 304.22 identifies requirements that grantees must

meet in disbursing scholarships. Proposed paragraph (a) would require

grantees to ensure that scholarship recipients satisfy certain

citizenship or residency requirements. Proposed paragraph (b) would

require grantees to limit the individual's scholarship assistance to

the amount by which the cost of attendance at the institution exceeds

the amount of any grant assistance the individual receives under Title

IV of the Higher Education Act. Proposed paragraph (c) would limit

scholarship assistance to an individual's cost of attendance for no

more than four academic years total, with exceptions for extensions

that are consistent with accommodations provided by the grantee under

the Americans with Disabilities Act or Section 504 of the

Rehabilitation Act of 1973.

Proposed Sec. 304.23 lists the assurances that must be provided by

a grantee intending to provide scholarships. Under proposed paragraph

(a), grantees would be required to enter into a written agreement with

each scholar who receives a scholarship through an IDEA-supported

personnel training project. That agreement would specify the terms and

conditions applicable to the scholarship, including the individual's

service obligation and responsibility to pay back the scholarship if

the individual fails to satisfy that obligation.

Proposed paragraph (b) would identify the service obligation

requirements as they apply to

[[Page 37468]]

scholarship recipients under IDEA personnel training grants.

Specifically, the proposed provision, which is based on the service

obligation requirements stated in section 673(h) of the Act, would

require that any individual who receives a scholarship from a training

project that prepares personnel to serve children with low- or high-

incidence disabilities (section 673(b) and (e) of the Act) or, in

appropriate instances as determined by the Secretary, from a training

project of national significance (section 673(d) of the Act) shall

subsequently maintain employment: (1) By providing special education

and related services to children with disabilities or early

intervention services to infants and toddlers, and their families; (2)

on a full-time basis; and (3) for a period of at least two years for

every year for which assistance was received. The service obligation

would apply beginning after the recipient completes his or her training

and would need to be completed within the number of years of required

service (2 years per year of assistance) plus an additional three

years. For example, a scholar who received two academic years of

scholarship support would have to perform four years of service within

seven years from the time the scholar's training ended.

The Secretary has clarified in the proposed regulations that

scholars may fulfill their service obligation by providing early

intervention services under Part C of the Act. Although section 673(h)

of the Act states that individuals must ``provide special education and

related services to children with disabilities'', IDEA clearly

authorizes personnel training projects to prepare personnel to provide

early intervention services to infants and toddlers with disabilities,

and their families. The Secretary believes Congress intended to apply

the service obligation and payback requirements to those who receive

scholarships from early intervention personnel training projects and

that early intervention scholars must be permitted to fulfill their

service obligation by working in the field in which they have been

trained.

The requirements in proposed paragraph (b)(2) are particularly

important to determining whether a former scholar's job would satisfy

the service obligation requirements in the proposed regulations. That

provision would require scholars to fulfill their service obligation by

working in a position or positions ``in which a majority of the persons

to whom the individual provides services are receiving from the

individual special education and related services as defined in Part B

of the Act or early intervention as defined in Part C of the Act.'' In

other words, a majority of a teacher's students, or a majority of a

service provider's caseload, must be children or infants and toddlers

with disabilities. Moreover, the former scholar must actually be

providing special education, related services, or early intervention

services to those individuals. The Secretary considers this requirement

essential in order to ensure that IDEA scholarship monies are used to

alleviate shortages of qualified special education, related service, or

early intervention personnel. The Secretary is concerned that without

this requirement scholars could potentially meet the service obligation

without addressing the needs of children with disabilities in any

measurable way. For example, serving as a regular education teacher in

a class with a sole disabled student, the Secretary believes, is not

the type of placement envisioned under section 673(h) of the statute.

An IDEA-supported scholar is free to choose such a profession, but

would be required to pay back to the Department the amount of

scholarship assistance received. On the other hand, an individual who

teaches regular and special education classes, and a majority of the

teacher's students are receiving special education services from the

teacher, would satisfy the proposed service obligation requirement.

Similarly, a speech-language pathologist who serves both children and

adults with disabilities would satisfy the service obligation provided

a majority of the provider's caseload are special education students

under Part B or infants and toddlers with disabilities under Part C.

Because scholars who enter leadership positions in special

education do not typically serve a classroom or caseload of students,

proposed paragraph (b)(3) would apply a somewhat different standard to

the service obligation for those who receive scholarships from

leadership training projects (section 673(c) of the Act). Such scholars

would be required to work full-time, for a period of at least two years

for each year of assistance, in a position (or positions) in which a

majority of the scholar's time is expended on work related to his or

her training (i.e., special education, related service, or early

intervention leadership). Determinations as to whether a former scholar

in a leadership position meets this time requirement, or whether any

scholar meets applicable service requirements, would be made by the

grantee institution.

Proposed Sec. 304.23(b)(4) would clarify that the service

obligation requirements as applied to part-time scholars will be based

on the accumulated academic years of training for which the scholarship

is received. As an example, the service obligation for a scholarship

recipient enrolled half-time in a training project over four years

would be based on two full academic years of training, meaning that the

individual must work four years (two years of service per year of

assistance) in the special education, related service, or early

intervention field, or pay back the scholarship.

Proposed section Sec. 304.23(c) through (f) would respectively

identify grantee assurances related to: scholarship repayment, the

grantee's standards for measuring a scholar's academic progress, the

grantee's system for tracking compliance with the service obligation

requirements, and the grantee's procedures for notifying scholars in

writing of their service obligation upon their exit from the training

project. A grantee would provide assurances to the Secretary that it

has established policies or procedures to address each of these

requirements, and the remaining requirements in Sec. 304.23, prior to

receiving a training grant under IDEA.

Proposed Sec. 304.23(g) and (h) would identify the requirements

governing maintenance and submission of information related to each

scholarship recipient. Examples include letter form, grantee-developed

forms, electronic communications, and other appropriate forms that

enable grantees to monitor compliance of scholars with the proposed

regulations.

Proposed Sec. 304.23(i) would require grantees to notify the

Secretary at the time an individual has failed to fulfill or has chosen

not to fulfill the applicable service obligation within the time period

specified under paragraph (b)(1)(iii) or (b)(3)(iii) so that the

Secretary may initiate repayment procedures.

The Secretary emphasizes that both the Act and the proposed

regulations hold grantee institutions responsible for ensuring that

scholarship recipients satisfy their service requirements. Accordingly,

the requirements of Sec. 304.23 are those that the Secretary considers

necessary for grantees to monitor the compliance of individual scholars

with their statutory and regulatory obligations.

[[Page 37469]]

Subpart C--What Conditions Must Be Met by the Scholar?

Proposed Sec. 304.30 would specify the requirements that a scholar

must meet in order to receive a scholarship under the program.

Specifically, scholars must: be enrolled in a course of study leading

to a degree, certificate, endorsement, or license related to special

education, related services, or early intervention services

(Sec. 304.30(a)); enter into with the grantee a written agreement

setting forth the service obligation requirements (Sec. 304.30(b));

receive the applicable training at the educational institution or

agency designated in the scholarship (Sec. 304.30(c)); not accept

educational allowances from any other entity if that allowance

conflicts with the individual's obligations under the program

(Sec. 304.30(d)); maintain satisfactory progress toward the relevant

degree, certificate, endorsement, or license (Sec. 304.30(e)); and

provide any information that the grantee needs in order to track the

scholar's progress in meeting the service obligation (Sec. 304.30(f)).

Proposed Sec. 304.31 would identify the circumstances under which a

scholar, who has yet to complete the service obligation, may receive a

deferral or exemption to the repayment requirement.

If a former scholar fails to satisfy the applicable service

obligation, or fails to obtain an authorized deferral or exception, the

scholar must repay the scholarship to the Secretary in accordance with

requirements in proposed Sec. 304.32. Proposed paragraph (a) of this

section would require that the repayment amount be proportional to the

service obligation that the scholar has failed to complete. For

example, if a scholar receives two academic years of scholarship

assistance, teaches special education for two years (rather than the

requisite four), then stops working or changes careers (in a field

unrelated to special education, related service, or early

intervention), the individual would be required to pay back one-half of

the scholarship assistance received.

Proposed Sec. 304.32(b) through (d) would specify the requirements

governing the accrual of interest and assessment of costs that would be

included as part of the individual's payback obligation. Proposed

Sec. 304.32(e) would list the various points at which a scholar enters

repayment status.

Finally, proposed Sec. 304.32(f) would authorize the Secretary to

establish a repayment schedule that a scholar in repayment status must

follow.

Executive Order 12866

1. Potential Costs and Benefits

These proposed regulations have been reviewed in accordance with

Executive Order 12866. Under the terms of the order the Secretary has

assessed the potential costs and benefits of this regulatory action.

The potential costs associated with the proposed regulations are

those resulting from statutory requirements and those determined by the

Secretary as necessary for administering this program effectively and

efficiently. Burdens specifically associated with information

collection requirements are identified and explained elsewhere in this

preamble under the heading Paperwork Reduction Act of 1995.

In assessing the potential costs and benefits--both quantitative

and qualitative--of these proposed regulations, the Secretary has

determined that the benefits of the proposed regulations justify the

costs.

To assist the Department in complying with the specific

requirements of Executive Order 12866, the Secretary invites comment on

whether there may be further opportunities to reduce any potential

costs or increase potential benefits resulting from these proposed

regulations without impeding the effective and efficient administration

of the program.

Summary of Potential Costs and Benefits

The following is an analysis of the costs and benefits of the

proposed regulations that are intended to implement the statutory

changes made by the IDEA Amendments of 1997. Based on this analysis,

the Secretary has concluded that the proposed regulations do not impose

significant costs to grantees under this program. An analysis of the

specific provisions follows:

Proposed Sec. 304.1 describes the purposes of the regulations. The

regulations reflect the essential purpose of the statute, which is to

ensure that individuals who receive scholarship assistance from

projects funded under the Personnel Preparation to Improve Services and

Results for Children with Disabilities Program complete a service

obligation, or repay all or part of the costs of such assistance. Any

and all benefits and costs associated with this statutory requirement

or the proposed regulations flow from this basic requirement. The

primary beneficiaries of this requirement would be children with

disabilities and their families. In order for the Federal government to

justify the expenditure of public funds under this program, certain

procedures and documentation are necessary to ensure that goals of the

program are achieved. Since the primary goal of this program is to

train personnel to provide special education, early intervention, and

related services to children with disabilities, Congress has determined

that individuals who benefit from financial assistance under this

program should return the benefits of that assistance in their field of

training. The primary benefit of these regulations is to establish a

process to implement this requirement.

The cost of this requirement will be borne by the Federal

government, by grantees who administer scholarship programs, and by

individuals who receive scholarships from those grantees.

The costs to grantees will be in establishing written agreements

with scholars before awarding scholarships, establishing and

maintaining information systems for tracking the academic progress of

scholars during training and tracking the progress of scholars in

meeting their service obligations following training, and in reporting

to the Secretary when a scholar fails to fulfill the service

obligation.

The costs to individual scholarship recipients will be in

satisfying the service obligation following training, providing

information to the grantee until completion of the service obligation,

and in repaying scholarship assistance if the scholar fails to fulfill

the service obligation.

Specific estimates of the costs associated with the regulations

affecting each of these parties is provided below. One person hour is

assumed to cost $15.00 on average.

Proposed Sec. 304.2 identifies the program and the purposes for

which the program provides financial assistance and has no costs

associated with it.

Proposed Sec. 304.3 provides definitions of key terms and has no

costs associated with it.

Proposed Sec. 304.20 provides information about how the Secretary

will set parameters on the proportion of grant funds that must be used

for scholarship assistance. Proposed Sec. 304.21 identifies allowable

costs under grants. No particular benefits or costs are associated with

these provisions.

Proposed Sec. 304.22 includes requirements that grantees must meet

in disbursing scholarships, including determining the status of

citizenship and eligibility of a scholar for Federal assistance. The

regulations would specify citizenship or resident criteria

[[Page 37470]]

for receiving scholarship assistance. An estimated 1,000 person-hours

per year would be required, at an estimated cost of $15,000 per year

for all grantees.

Proposed Sec. 304.23 includes assurances that must be provided by a

grantee that intends to provide scholarships. The scholar and the

grantee benefit from this provision which ensures that each has a clear

understanding of each party's responsibilities prior to the awarding of

a scholarship. An estimated 7,500 person-hours per year would be

required, at an estimated cost of $112,500 per year for all grantees.

Proposed Sec. 304.23(b)(3) includes requirements for fulfilling the

service obligation as it relates to individuals trained under section

673(c) of the Act, leadership training. No additional costs are

associated with this provision.

Proposed Sec. 304.23(b)(4) clarifies that the service obligation

requirement as applied to a part-time scholar will be based on the

accumulated academic years of training for which the scholarship is

received. This provision does not impose costs on grantees or scholars.

Proposed Sec. 304.23(c) through (f) include provisions relating to

repayment of all or part of any scholarship received in the event that

the service obligation is not fulfilled. The Federal agency must

collect repayment of scholarship funds from a scholar who fails to meet

the service obligation. Grantees must establish policies and

procedures, including a tracking system, to determine the compliance of

scholars with the terms of the agreement the scholars entered with the

grantee. This one-time cost will vary considerably depending on

existing data systems at grantee institutions. An estimated 12,500

person-hours per year would be required, at an estimated cost of

$187,500 per year for all grantees. Grantees must establish policies

and procedures for receiving written exit certification from scholars

that identifies, among other things, the number of years the scholar

needs to work to fulfill the service obligation. An estimated 10,000

person-hours per year would be required, at an estimated cost of

$150,000 per year for all grantees.

Proposed Sec. 304.23(g) and (h) require the grantee to provide

necessary information on a scholar, upon request of the Secretary, and

to maintain such information for a period of time equal to the time

required to fulfill the service obligation. An estimated 100,000

person-hours per year would be required, at an estimated cost of

$1,500,000 per year for all grantees.

Under Sec. 304.23(i), the grantee must inform the Secretary if a

scholar fails to fulfill the service obligation. Starting in the fourth

or fifth year of the program, an estimated 1,500 person-hours per year

would be required for an approximation of 75 cases per year, at an

estimated cost of $22,500 in staff time and correspondence for all

grantees.

Proposed Sec. 304.30(a) through (f) require that a scholar: be

enrolled in a course of study leading to a degree, certificate,

endorsement, or license related to special education, related services,

or early intervention services; enter into a written agreement with the

grantee before starting training; and be trained at the educational

institution or agency designated in the scholarship. These decisions

are made by scholars in advance of accepting scholarship assistance and

are conditions for receiving such assistance. Therefore no costs are

associated with the requirements under this provision.

Proposed Sec. 304.31 would provide procedures whereby a scholar

could request a deferral or exception to performance of the service

obligation or repayment. The costs associated with this requirement

would be negligible.

Proposed Sec. 304.32(a) through (d) delineate the monetary payback

provisions that would apply if a scholar failed to meet the terms and

conditions of a scholarship agreement or to obtain a deferral or an

exception to performance or repayment. There are no additional costs

associated with these provisions.

Proposed Sec. 304.32(e) specifies when a scholar enters repayment

status. Proposed Sec. 304.32(f) requires the scholar to make payments

to the Secretary that cover principal, interest, and collection costs

according to a schedule established by the Secretary. There are no

additional costs associated with these provisions.

2. Clarity of the Regulations

Executive Order 12866 requires 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: (1) Are the requirements in the proposed regulations

clearly stated? (2) Do the proposed regulations contain technical terms

or other wording that interferes with their clarity? (3) Does the

format of the proposed regulations (grouping and order of sections, use

of headings, paragraphing, etc.) aid or reduce their clarity? Would the

proposed regulations be easier to understand if they were divided into

more (but shorter) sections? (A ``section'' is preceded by the symbol

``Sec. '' and a numbered heading; for example, Sec. 304.23 What

assurances must be provided by a grantee that intends to provide

scholarships? (4) Is the description of the proposed regulations in the

Supplementary Information section of this preamble helpful in

understanding the proposed regulations? How could this description be

more helpful in making the proposed regulations easier to understand?

(5) What else could the Department do to make the proposed regulations

easier to understand?

A copy of any comments that concern how the Department could make

these proposed regulations easier to understand should be sent to

Stanley M. Cohen, Regulations Quality Officer, U.S. Department of

Education, 600 Independence Avenue, SW. (room 5121, FB-10B),

Washington, DC 20202-2241.

Regulatory Flexibility Act Certification

The Secretary certifies that these regulations would not have a

significant economic impact on a substantial number of small entities.

The entities that would be affected by these proposed regulations are

institutions of higher education that participate in programs under

Part D of IDEA. These institutions are defined as ``small entities,''

according to the U.S. Small Business Administration Size Standards, if

they are for-profit or nonprofit institutions with total annual revenue

below $5,000,000 or if they are institutions controlled by governmental

entities with populations below 50,000. These proposed regulations

impose minimal requirements to implement the statutory provisions and

would not have a significant economic impact on the small entities

affected.

Paperwork Reduction Act of 1995

Sections 304.22, 304.23, 304.30, 304.31, and 304.32 contain

information collection requirements. As required by the Paperwork

Reduction Act of 1995 (44 U.S.C. 3507(d)), the Department of Education

has submitted a copy of these sections to the Office of Management and

Budget (OMB) for its review. The Secretary notes that each grantee has

the discretion to determine the method(s) by which it will collect and

maintain information.

Collection of Information: Special Education--Personnel Preparation

To Improve Services and Results for Children With Disabilities

Annual reporting and record keeping burden for this collection of

information is estimated to average 285 hours per

[[Page 37471]]

year per grantee, or 142,500 hours for 500 grantees. The burden for

scholars is approximately 1.3 hours per year for each scholar, or a

total of 10,000 hours for a projected 7,500 scholars per year. These

estimates include the time for reviewing instructions, searching

existing data sources, gathering and maintaining the data needed, and

completing and reviewing the various collections of information. Thus,

the total annual reporting and record keeping burden for this

collection at the full operation of the program is estimated to be

157,500 hours.

Organizations and individuals desiring to submit comments on the

information collection requirements should direct them to the Office of

Information and Regulatory Affairs, OMB, room 10235, New Executive

Office Building, Washington, DC 20503; Attention: Desk Officer for U.S.

Department of Education.

The Department considers comments by the public on this proposed

collection of information in--

Evaluating whether the proposed collection of information

is necessary for the proper performance of the functions of the

Department, including whether the information will have practical use;

Evaluating the accuracy of the Department's estimate of

the burden of the proposed collections of information, including the

validity of the methodology and assumptions used;

Enhancing the quality, usefulness, and clarity of the

information to be collected; and

Minimizing the burden of the collection of information on

those who are to respond, including through the use of appropriate

automated, electronic, mechanical, or other technological collection

techniques or other forms of information technology; e.g., permitting

electronic submission of responses.

OMB is required to make a decision concerning the collections of

information contained in these proposed regulations between 30 and 60

days after publication of this document in the Federal Register.

Therefore, a comment to OMB is best assured of having its full effect

if OMB receives it within 30 days of publication. This does not affect

the deadline for the public to comment to the Department on the

proposed regulations.

Intergovernmental Review

This program is subject to the requirements of Executive Order

12372 and the regulations in 34 CFR part 79. The objective of the

Executive order is to foster an intergovernmental partnership and a

strengthened federalism by relying on processes developed by State and

local governments for coordination and review of proposed Federal

financial assistance.

In accordance with the order, this document is intended to provide

early notification of the Department's specific plans and actions for

this program.

Assessment of Educational Impact

The Secretary particularly requests comments on whether the

proposed regulations in this document would require transmission of

information that is being gathered by or is available from any other

agency or authority of the United States.

Electronic Access to This Document

Anyone may view this document, as well as all other Department of

Education documents published in the Federal Register, in text or

portable document format (pdf) on the World Wide Web at either of the

following sites:

http://ocfo.ed.gov/fedreg.htm

http://www.ed.gov/news.html

To use the pdf you must have the Adobe Acrobat Reader Program with

Search, which is available free at either of the previous sites. If you

have questions about using the pdf, call the U.S. Government Printing

Office at (202) 512-1530 or, toll free at 1-888-293-6498.

Anyone may also view these documents in text copy only on an

electronic bulletin board of the Department. Telephone: (202) 219-1511

or, toll free, 1-800-222-4922. The documents are located under Option

G--Files/Announcements, Bulletins and Press Releases.

Note: The official version of this document is the document

published in the Federal Register.

List of Subjects in 34 CFR Part 304

Grant programs--children with disabilities, special education,

Personnel preparation, Reporting and record keeping requirements.

Dated: June 24, 1998.

Judith E. Heumann,

Assistant Secretary for Special Education and Rehabilitative Services.

(Catalog of Federal Domestic Assistance Number 84.325, Special

Education--Personnel Preparation to Improve Services and Results for

Children with Disabilities)

The Secretary proposes to amend title 34 of the Code of Federal

Regulations by revising Part 304 to read as follows:

PART 304--SPECIAL EDUCATION--PERSONNEL PREPARATION TO IMPROVE

SERVICES AND RESULTS FOR CHILDREN WITH DISABILITIES

Subpart A--General

Sec.

304.1 Purpose.

304.2 What is the Special Education--Personnel Preparation to

Improve Services and Results for Children with Disabilities Program?

304.3 What regulations apply to this part?

304.4 What definitions apply?

Subpart B--What Conditions Must Be Met by the Grantee?

304.20 What are the requirements for directing grant funds?

304.21 What are allowable costs?

304.22 What are the requirements for grantees in disbursing

scholarships?

304.23 What assurances must be provided by a grantee that intends

to provide scholarships?

Subpart C--What Conditions Must Be Met by the Scholar?

304.30 What are the requirements for scholars?

304.31 What are the requirements for obtaining a deferral or

exception to performance or repayment under an agreement?

304.32 What are the consequences of a scholar's failure to meet the

terms and conditions of a scholarship agreement?

Authority: (20 U.S.C. 1473).

Subpart A--General

Sec. 304.1 Purpose.

Individuals who receive scholarship assistance from projects funded

under the Special Education--Personnel Preparation to Improve Services

and Results for Children with Disabilities Program are required to

complete a service obligation, or repay all or part of the costs of

such assistance, in accordance with section 673(h) of the Individuals

with Disabilities Education Act and the regulations of this part.

(Authority: 20 U.S.C. 1473(h))

Sec. 304.2 What is the Special Education--Personnel Preparation to

Improve Services and Results for Children With Disabilities Program?

The Special Education--Personnel Preparation to Improve Services

and Results for Children with Disabilities Program (program) provides

financial assistance under section 673 of the Act to--

(a) Help address State-identified needs for qualified personnel in

special education, related services, early intervention, and regular

education, to work with children with disabilities; and

(b) Ensure that those personnel have the skills and knowledge,

derived from

[[Page 37472]]

practices that have been determined, through research and experience,

to be successful, that are needed to serve those children.

(Authority: 20 U.S.C. 1473(a))

Sec. 304.3 What definitions apply to this program?

(a) Definitions in EDGAR. The following terms used in this part are

defined in 34 CFR 77.1:

Applicant

Award

Department

EDGAR

Grantee

Project

Recipient

Secretary

(b) The following definitions apply to this program: Academic year

means a full-time course of study--

(1) Taken for a period totaling at least nine months; or

(2) Taken for the equivalent of at least two semesters, two

trimesters, or three quarters.

Act means the Individuals with Disabilities Education Act, 20

U.S.C. 1400 et seq.

Early intervention services means early intervention services as

defined in section 632(4) of the Act.

Full-time, for purposes of determining whether an individual is

employed full-time in accordance with Sec. 304.23, means a full-time

equivalent position as defined by the individual's employer or by the

agencies served by the individual.

Payback means monetary repayment of scholarship assistance in lieu

of completion of a service obligation.

Related services means related services as defined in section

602(22) of the Act.

Scholar means an individual who is pursuing a degree, license,

endorsement, or certification related to special education, related

services, or early intervention services and who receives scholarship

assistance under this part.

Scholarship means financial assistance to a scholar for training

under the program and includes all disbursements or credits for

tuition, fees, student stipends, and books, and travel in conjunction

with training assignments.

Service obligation means a scholar's employment obligation, as

described in section 673(h) of the Act and Sec. 304.23(b) of this part.

Special education means special education as defined in section

602(25) of the Act.

(Authority: 20 U.S.C. 1473(h))

Sec. 304.4 What regulations apply to this program?

The following regulations apply to this program:

(a) The Education Department General Administrative Regulations

(EDGAR) in the following part of title 34 of the Code of Federal

Regulations:

(1) Part 74 (Administration of Grants to Institutions of Higher

Education, Hospitals, and Nonprofit Organizations).

(2) Part 75 (Direct Grant Programs).

(3) Part 77 (Definitions That Apply to Department Regulations). '

(4) Part 79 (Intergovernmental Review of Department of Education

Programs and Activities).

(5) Part 80 (Uniform Administrative Requirements for Grants and

Cooperative Agreements to State and Local Governments).

(6) Part 81 (General Education Provisions Act--Enforcement).

(7) Part 82 (New Restrictions on Lobbying).

(8) Part 85 (Governmentwide Debarment and Suspension

(Nonprocurement) and Governmentwide Requirements for Drug-Free

Workplace (Grants)).

(9) Part 86 (Drug-Free Schools and Campuses).

(b) The regulations in this part 304.

(Authority: 20 U.S.C. 1473; 20 U.S.C. 3474(a)

Subpart B--What Conditions Must Be Met by the Grantee?

Sec. 304.20 What are the requirements for directing grant funds?

(a) The Secretary shall, as appropriate, identify in a notice

published in the Federal Register, the percentage (up to 75 percent) of

a total award under the program that must be used to support

scholarships as defined in Sec. 304.3.

(b) The Secretary may award grants that use less than the

percentage published under paragraph (a) of this section for

scholarships based upon the unique nature of a project.

(Authority: 20 U.S.C. 1473(h))

Sec. 304.21 What are allowable costs?

In addition to the allowable costs established in the Education

Department General Administrative Regulations in 34 CFR 75.530 through

75.562, the following items are allowable expenditures by projects

funded under the program:

(a) Tuition and fees.

(b) Student stipends and books.

(c) Travel in conjunction with training assignments.

(Authority: 20 U.S.C. 1473(h))

Sec. 304.22 What are the requirements for grantees in disbursing

scholarships?

Before disbursement of scholarship assistance to an individual, a

grantee shall--

(a) Ensure that the scholar--

(1) Is a citizen or national of the United States;

(2) Provides evidence from the U.S. Immigration and Naturalization

Service that he or she--

(i) Is a permanent resident of the United States; or

(ii) Is in the United States for other than a temporary purpose

with the intention of becoming a citizen or permanent resident; or

(3) Has a permanent or lasting--as distinguished from temporary--

principal, actual dwelling place in fact, without regard to intent, in

the Republic of the Marshall Islands, the Federated States of

Micronesia, or Palau (during the period in which those entities are

eligible to receive an award under the program) or the Commonwealth of

the Northern Mariana Islands.

(b) Limit scholarship assistance to the amount by which the

individual's cost of attendance at the institution exceeds the amount

of grant assistance the scholar is to receive for the same academic

year under Title IV of the Higher Education Act;

(c) Limit scholarship assistance to the individual's cost of

attendance at the institution, consistent with paragraph (b), for no

more than a total of four academic years, except that the grantee may

provide an extension consistent with the institution's accommodations

under the Americans with Disabilities Act or Section 504 of the

Rehabilitation Act of 1973, if the grantee determines that an

individual has a disability that seriously affects the completion of

the course of study;

(d) Obtain a Certification of Eligibility for Federal Assistance

from each scholar, as prescribed in 34 CFR 75.60, 75.61, and 75.62.

(Authority: 20 U.S.C. 1473)

Sec. 304.23 What assurances must be provided by a grantee that intends

to provide scholarships?

A grantee that intends to grant scholarships under the program

shall provide the following assurances before receiving an award:

(a) Requirement for agreement. Each scholar who will receive a

scholarship will first enter into a written agreement with the grantee

that contains the terms and conditions required by this section.

(b) Terms of the agreement. Each agreement under paragraph (a) of

this section shall contain, at a minimum, the following provisions:

[[Page 37473]]

(1) Individuals who receive scholarship assistance from projects

funded under section 673(b) and (e), and to the extent determined

appropriate by the Secretary, section 673(d), of the Act will

subsequently maintain employment--

(i) In which the individual provides special education and related

services to children with disabilities or early intervention services

to infants and toddlers, and their families;

(ii) On a full-time basis; and

(iii) For a period of at least two years for every year for which

assistance was received, within a period, beginning after the recipient

completes the training for which the scholarship assistance was

provided, of not more than the sum of the number of years required in

this paragraph and three additional years.

(2) In order to meet the requirements of paragraph (b)(1) of this

section, an individual must be employed in a position in which a

majority of the persons to whom the individual provides services are

receiving from the individual special education and related services as

defined in Part B of the Act or early intervention services as defined

in Part C of the Act.

(3) Individuals who receive scholarship assistance from a

leadership preparation project funded under section 673(c) of the Act

will subsequently maintain employment--

(i) In which the individual expends a majority of his or her time

performing work related to the individual's preparation;

(ii) On a full-time basis; and

(iii) For a period of at least two years for every year for which

assistance was received, within a period, beginning after the recipient

completes the training for which the scholarship assistance was

awarded, of not more than the sum of the number of years required in

this paragraph and three additional years.

(4) The service obligation in this subsection as applied to a part-

time scholar will be based on the accumulated academic years of

training for which the scholarship is received.

(c) Repayment. (1) Subject to the provisions in Sec. 304.31

regarding a deferral or exception, a scholar who does not fulfill the

requirements in paragraph (b)(1) or (b)(3) of this section, as

appropriate, shall repay all or part of any scholarship received, plus

interest.

(2) The amount of the scholarship that has not been retired through

eligible service will constitute a debt owed to the United States

that--

(i) Will be repaid by the scholar in accordance with Sec. 304.32;

and

(ii) May be collected by the Secretary in accordance with 34 CFR

part 30, in the case of the scholar's failure to meet the obligation of

Sec. 304.32.

(d) Standards for satisfactory progress. The grantee shall

establish, notify students of, and apply reasonable standards for

measuring whether a scholar is maintaining satisfactory progress in the

scholar's course of study;

(e) Tracking system. The grantee has established policies and

procedures, including a tracking system, to determine compliance of

scholars with the terms of the written agreement developed under this

section;

(f) Exit certification. The grantee has established policies and

procedures for receiving written certification from scholars at the

time of exit from the program that identifies--

(1) The number of years the scholar needs to work to satisfy the

work requirements in paragraph (b) of this section.

(2) The total amount of scholarship assistance received subject to

the work-or-repay provision in paragraph (b) of this section.

(3) The time period, consistent with paragraphs (b)(1)(iii) or

(b)(3)(iii) of this section, during which the scholar must satisfy the

work requirements in paragraph (b) of this section.

(4) All other obligations of the scholar under this section.

(g) Information. The grantee shall provide, upon request of the

Secretary, information, including records maintained under paragraphs

(e) and (f) of this section, that is necessary to carry out the

Secretary's functions under this part.

(h) Records. The grantee shall maintain the information under this

section related to a scholar for a period of time equal to the time

required to fulfill the obligation under paragraph (b) of this section.

(i) Notification. The grantee shall inform the Secretary if a

scholar fails to fulfill or chooses not to fulfill the obligation under

paragraph (b)(1) or (b)(3) of this section.

(Authority: 20 U.S.C. 1473(h))

Subpart C--What Conditions Must be met by the Scholar?

Sec. 304.30 What are the requirements for scholars?

A scholar shall--

(a) Be enrolled in a course of study leading to a degree,

certificate, endorsement, or license related to special education,

related services, or early intervention services in order to be

eligible to receive a scholarship under the program;

(b) Enter into a written agreement with the grantee that meets the

terms and conditions of Sec. 304.23 of this part before starting

training;

(c) Receive the training at the educational institution or agency

designated in the scholarship;

(d) Not accept payment of educational allowances from any other

entity if that allowance conflicts with the scholar's obligation under

this part; and

(e) Maintain satisfactory progress toward the degree, certificate,

endorsement, or license as determined by the grantee.

(f) Provide information necessary for the grantee to track the

scholar's progress in meeting the service obligation under

Sec. 304.23(b).

(Authority: 20 U.S.C. 1473(h))

Sec. 304.31 What are the requirements for obtaining a deferral or

exception to performance or repayment under an agreement?

(a) An exception to the repayment requirement in Sec. 304.23(c) may

be granted, in whole or part, if the scholar--

(1) Is unable to continue the course of study or perform the

service obligation because of a disability that is expected to continue

indefinitely; or

(2) Has died.

(b) Deferral of the repayment requirement in Sec. 304.23(c) may be

granted during the time the scholar--

(1) Is engaging in a full-time course of study at an institution of

higher education;

(2) Is serving, not in excess of three years, on active duty as a

member of the armed services of the United States;

(3) Is serving as a volunteer under the Peace Corps Act;

(4) Is serving as a full-time volunteer under Title I of the

Domestic Volunteer Service Act of 1973;

(5) Has a disability which prevents the individual from working,

for a period not to exceed three years; or

(6) Is unable to secure employment as required by the agreement by

reason of the care provided to a disabled family member for a period

not to exceed 12 months.

(c) Deferrals or exceptions to performance or repayment may be

provided by grantees based upon sufficient evidence to substantiate the

grounds for an exception under paragraph (a) of this section or a

deferral under paragraph (b) of this section.

(Authority: 20 U.S.C. 1473(h))

Sec. 304.32 What are the consequences of a scholar's failure to meet

the terms and conditions of a scholarship agreement?

If a scholar fails to meet the terms and conditions of a

scholarship agreement

[[Page 37474]]

under Sec. 304.23(b) or to obtain a deferral or an exception as

provided in Sec. 304.31, the scholar shall repay all or part of the

scholarship assistance to the Secretary as follows:

(a) Amount. The amount of the scholarship to be repaid is

proportional to the service obligation not completed.

(b) Interest Rate. The Secretary charges the scholar interest on

the unpaid balance owed in accordance with 31 U.S.C. 3717.

(c) Interest accrual. (1) Interest on the unpaid balance accrues

from the date the scholar is determined to have entered repayment

status under paragraph (e) of this section.

(2) Any accrued interest is capitalized at the time the scholar's

repayment schedule is established.

(3) No interest is charged for the period of time during which

repayment has been deferred under Sec. 304.31.

(d) Collection costs. Under the authority of 31 U.S.C. 3717, the

Secretary may impose reasonable collection costs.

(e) Repayment status. A scholar enters repayment status on the

first day of the first calendar month after the earliest of the

following dates, as applicable:

(1) The date the scholar informs the grantee that he or she does

not plan to fulfill the service obligation under the agreement.

(2) Any date when the scholar's failure to begin or maintain

employment makes it impossible for that individual to complete the

service obligation within the number of years required in

Sec. 304.23(b).

(3) Any date on which the scholar discontinues enrollment in the

course of study under Sec. 304.30(a).

(f) Amounts and frequency of payment. The scholar shall make

payments to the Secretary that cover principal, interest, and

collection costs according to a schedule established by the Secretary.

(Authority: 20 U.S.C. 1473(h))

[FR Doc. 98-18303 Filed 7-9-98; 8:45 am]

BILLING CODE 4000-01-P