Upward Bound Program; Proposed Rule

Part V

Department of Education

_______________________________________________________________________

34 CFR Part 645

Upward Bound Program; Proposed Rule

Proposed Rules

DEPARTMENT OF EDUCATION

34 CFR Part 645

RIN 1840-AB65

Upward Bound Program

AGENCY: Notice of proposed rulemaking.

SUMMARY: The Secretary proposes to amend the regulations governing the

Upward Bound Program. These regulations are needed to further implement

statutory changes made to the Upward Bound Program by the Higher

Education Amendments of 1992, and to clarify and simplify certain

requirements governing the program. The selection criteria, prior

experience criteria, and grantee accountability provisions are affected

by these proposed changes.

The purposes and allowable activities of the Upward Bound Program

support the National Education Goals. Specifically, the program funds

projects designed to increase high school graduation rates, increase

competency over challenging subject matters, encourage more students to

pursue programs in mathematics and science, and help gain parental

participation in the social, emotional and academic growth of their

children.

DATES: Comments must be received on or before October 3, 1994.

ADDRESSES: All comments concerning these proposed regulations should be

addressed to Richard T. Sonnergren, U.S. Department of Education, Room

5065, FOB-6, 400 Maryland Avenue, SW., Washington, DC 20202-5249.

A copy of any comments that concern information collection

requirements should also be sent to the Office of Management and Budget

at the address listed in the Paperwork Reduction Act section of this

preamble.

FOR FURTHER INFORMATION CONTACT: Prince Teal or Carlos Stewart, U.S.

Department of Education, 400 Maryland Avenue, SW., Room 5065,

Washington, DC 20202-5249. Telephone: (202) 708-4804. Individuals who

use a telecommunications device for the deaf (TDD) may call the Federal

Information Relay Service (FIRS) at 1-800-877-8339 between 8 a.m. and 8

p.m., Eastern time, Monday through Friday.

SUPPLEMENTARY INFORMATION:

Background

The Upward Bound Program provides grants to institutions of higher

education; public and private agencies and organizations; combinations

of institutions, agencies, and organizations; and secondary schools

under special circumstances. The purpose of the program is to generate

the skills and motivation necessary for success in education beyond

high school.

On October 1, 1993, the Secretary published revisions to the Upward

Bound Program regulations to implement changes required by the Higher

Education Amendments of 1992 (58 FR 51520-21). This NPRM proposes

program improvements that were not covered by the October 1, 1993

regulations. The major provisions of these proposed regulations include

the following:

Definitions (Sec. 645.5). The proposed regulations revise

or add definitions to clarify certain terms used in the regulations,

including definitions of ``participant,'' ``independent student,'' and

``organization/agency.''

Kinds of Projects (Sec. 645.10). The proposed regulations

will define in general the three types of Upward Bound projects

supported under the program, i.e., Regular Upward Bound projects, Math

and Science Upward Bound projects, and Veterans Upward Bound projects.

Upward Bound services and activities (Secs. 645.11-

645.14). Section 645.11 of the proposed regulations lists the services

that all Upward Bound projects must provide. Section 645.12 describes

the manner in which services are provided in Regular Upward Bound

projects. Section 645.13 lists additional services that the Math and

Science Upward Bound project must provide and the manner in which

services are provided. Section 645.14 lists additional services that

the Veterans Upward Bound project must provide.

How does one apply for an award? (Secs. 645.20-645.21).

Section 645.20 of the proposed regulation describes the condition under

which the Secretary will accept more than one application from an

eligible applicant. Section 645.21 describes the assurances an

applicant must include in an application.

Selection criteria (Sec. 645.31). The proposed regulations

revise the order, weighting, and content of application selection

criteria. The purpose for this revision is to simplify and clarify the

review process and increase grantee accountability. In addition, the

proposed regulations clarify and strengthen the requirements for a

grantee's evaluation of a project.

Prior experience (Sec. 645.32). The proposed regulations

revise the criteria for the evaluation of a grantee's prior experience

to focus on project outcomes.

Project size (Sec. 645.43(a)). The proposed regulations

establish a minimum number of participants residing in the target area

who must be served by a project in each budget period, and permit that

number to be reduced if the grant amount for the budget period is less

than $190,000. The proposed regulations require that Veterans Upward

Bound projects serve at least 120 participants during each budget

period, and that all other Upward Bound projects serve at least 50

participants in each budget period. Coupled with the new definition of

``participant'' in Sec. 645.6 and the new recordkeeping requirements

for participants in Sec. 645.43(c), this provision is intended to

ensure that projects provide a reasonable level of services to a

significant number of recipients. This intended result is consistent

with section 402A(b)(3) of the HEA, which establishes a $190,000

minimum grant level for awards beginning in fiscal year 1994, unless

the applicant requests a lesser amount.

Project period (Sec. 645.34). The proposed regulations

implement a statutory provision that expands the project period to four

years--or five years in the case of applications that receive peer

review scores in the highest 10 percent of all scores for approved new

projects.

Executive Order 12866

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 regulations

easier to understand, including answers to questions such as the

following: (1) Are the requirements in the regulations clearly stated?

(2) Do the regulations contain technical terms or other wording that

interferes with their clarity? (3) Does the format of the regulations

(grouping and order of sections, use of headings, paragraphing, etc.)

aid or reduce their clarity? Would the 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. 645.20. (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

regulations easier to understand?

A copy of any comments that concern whether these proposed

regulations are easy to understand should also be sent to Stanley

Cohen, Regulations Quality Officer, U.S. Department of Education, 400

Maryland Avenue, SW. (Room 5125, FOB-6), Washington, DC 20202-2241.

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. The small entities that would be affected by these

regulations are small institutions of higher education, other agencies

and organizations, and secondary schools that receive Federal funds

under this program. However, the regulations would not have a

significant economic impact on the small entities affected because the

regulations would not impose excessive regulatory burdens or require

unnecessary Federal supervision. The regulations would impose minimal

requirements to ensure the proper expenditure of program funds.

Paperwork Reduction Act of 1980

Sections 645.4, 645.31, 645.32, and 645.43 contain information

collection requirements. As required by the Paperwork Reduction Act of

1980, the Department of Education will submit a copy of these sections

to the Office of Management and Budget (OMB) for its review. (44 U.S.C.

3504(h)).

Institutions of higher education; public and private agencies and

organizations; combinations of institutions, agencies, and

organizations; and secondary schools are eligible to apply for grants

under these regulations. The Department needs and uses the application

data and information to make grants. Annual grantee reporting is

estimated to average 40 hours per response for over 600 respondents,

including the time for reviewing instructions, searching existing data

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

reviewing the collection of information.

Organizations and individuals desiring to submit comments on the

information collection requirement should direct them to the Office of

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

Office Building, Washington, DC 20504; Attention: Daniel J. Chenok.

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.

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 5065, FOB-6, 400 Maryland Avenue, SW., Washington, DC.,

between the hours of 8:30 a.m. and 4 p.m., Monday through Friday of

each week except Federal holidays.

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.

List of Subjects in 34 CFR Part 645

Colleges and Universities, Education of disadvantaged, Grant

programs--education, Reporting and recordkeeping requirements,

Secondary education.

Dated: August 17, 1994.

David A. Longanecker,

Assistant Secretary, Office of Postsecondary Education.

(Catalog of Federal Domestic Assistance Number 84.047, Upward Bound

Program.)

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

Regulations by revising Part 645 to read as follows:

PART 645--UPWARD BOUND PROGRAM

Subpart A--General

Sec.

645.1 What is the Upward Bound Program?

645.2 Who is eligible for a grant?

645.3 Who is eligible to participate in an Upward Bound project?

645.4 What are the grantee requirements with respect to low income

and first-generation participants?

645.5 What regulations apply?

645.6 What definitions apply to the Upward Bound Program?

Subpart B--What Kinds of Projects and Services Does the Secretary

Assist Under This Program?

645.10 What kinds of projects are supported under the Upward Bound

Program?

645.11 What services do all Upward Bound projects provide?

645.12 How are regular Upward Bound projects organized?

645.13 What additional services do Math and Science Upward Bound

projects provide and how are they organized?

645.14 What additional services do Veterans Upward Bound projects

provide?

Subpart C--How Does One Apply for an Award?

645.20 How many applications for an Upward Bound award may an

eligible applicant submit?

645.21 What assurances must an applicant include in an application?

Subpart D--How Does the Secretary Make a Grant?

645.30 How does the Secretary decide which grants to make?

645.31 What selection criteria does the Secretary use?

645.32 How does the Secretary evaluate prior experience?

645.33 How does the Secretary set the amount of a grant?

645.34 How long is a project period?

Subpart E--What Conditions Must Be Met by a Grantee?

645.40 What are allowable costs?

645.41 What are unallowable costs?

645.42 What are Upward Bound stipends?

645.43 What other requirements must a grantee meet?

Authority: 20 U.S.C. 1070a-11 and 1070a-13, unless otherwise

noted.

Subpart A--General

Sec. 645.1 What is the Upward Bound Program?

(a) The Upward Bound Program provides Federal grants to projects

designed to generate in program participants the skills and motivation

necessary to persist in completing a program of secondary education and

enter and complete a program of postsecondary education.

(b) The Upward Bound Program provides Federal grants for the

following three types of projects:

(1) Regular Upward Bound projects.

(2) Upward Bound Math and Science projects.

(3) Veterans Upward Bound projects.

(Authority: 20 U.S.C. 1070a-11 and 1070a-13)

Sec. 645.2 Who is eligible for a grant?

The following entities are eligible to apply for a grant to carry

out an Upward Bound project:

(a) Institutions of higher education.

(b) Public or private agencies or organizations.

(c) Secondary schools, in exceptional cases, if there are no other

applicants capable of providing this program in the target area or

areas to be served by the proposed project.

(d) A combination of the types of institutions, agencies, and

organizations described in paragraphs (a) and (b) of this section.

(Authority: 20 U.S.C 1070a-11 and 1070a-13)

Sec. 645.3 Who is eligible to participate in an Upward Bound project?

An individual is eligible to participate in a Regular, Math and

Science, or Veterans Upward Bound project if the individual meets all

of the following requirements:

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

(2) Is a permanent resident of the United States.

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

provides evidence from the Immigration and Naturalization Service of

his or her intent to become a permanent resident.

(4) Is a permanent resident of Guam, the Northern Mariana Islands,

or the Trust Territory of the Pacific Islands.

(5) Is a resident of the Freely Associated States--the Federated

States of Micronesia or the Republic of the Marshall Islands.

(b) Is--(1) A potential first-generation college student; or

(2) A low-income individual.

(c) Has a need for academic support, as determined by the grantee,

in order to pursue successfully a program of education beyond high

school.

(d) At the time of initial selection, has completed the eighth

grade but has not entered the twelfth grade and is at least 13 years

old, but not older than 19. However, a veteran as defined in

Sec. 645.6, regardless of age, is eligible to participate in an Upward

Bound project if he or she satisfies the eligibility requirements in

paragraphs (a), (b), and (c) of this section.

(Authority: 20 U.S.C. 1070a-11 and 1070a-13)

Sec. 645.4 What are the grantee requirements with respect to low

income and first-generation participants?

(a) At least two-thirds of the eligible participants a grantee

serves must at the time of initial selection qualify as both low-income

individuals and potential first-generation college students. The

remaining participants must, at the time of initial selection, qualify

as either low-income individuals or potential first generation college

students.

(b) For purposes of documenting a participant's low-income status

the following applies:

(1) In the case of a student who is not an independent student, an

institution shall document that the student is a low-income individual

by obtaining and maintaining--

(i) A signed statement from the student's parent or legal guardian

regarding family income;

(ii) Verification of family income from another governmental

source;

(iii) A signed financial aid application; or

(iv) A signed United States or Puerto Rican income tax return.

(2) In the case of a student who is an independent student, an

institution shall document that the student is a low-income individual

by obtaining and maintaining--

(i) A signed statement from the student regarding family income;

(ii) Verification of family income from another governmental

source;

(iii) A signed financial aid application; or

(iv) A signed United States or Puerto Rican income tax return.

(c) For purposes of documenting potential first generation college

student status, documentation consists of a signed statement from a

dependent participant's parent, or a signed statement from an

independent participant.

(d) A grantee does not have to revalidate a participant's

eligibility after the participant's initial selection.

(Authority: 20 U.S.C. 1070d, and 1070d-1a)

Sec. 645.5 What regulations apply?

The following regulations apply to the Upward Bound Program:

(a) The Education Department General Administrative Regulations

(EDGAR) as follows:

(1) 34 CFR Part 74 (Administration of Grants to Institutions of

Higher Education, Hospitals, and Nonprofit Organizations);

(2) 34 CFR Part 75 (Direct Grant Programs), except for 34 CFR

75.511;

(3) 34 CFR Part 77 (Definitions that Apply to Department

Regulations), except for the definition of ``secondary school'' in 34

CFR 77.1;

(4) 34 CFR Part 79 (Intergovernmental Review of Department of

Education Programs and Activities);

(5) 34 CFR Part 82 (New Restrictions on Lobbying);

(6) 34 CFR Part 85 (Governmentwide Debarment and Suspension

(Nonprocurement) and Governmentwide Requirements for Drug-Free

Workplace (Grants));

(7) 34 CFR Part 86 (Drug-Free Schools and Campuses);

(b) The regulations in this Part 645.

(Authority: 20 U.S.C. 1070a-11 and 1070a-13)

Sec. 645.6 What definitions apply to the Upward Bound Program?

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

defined in 34 CFR 77.1:

Applicant

Application

Award

Budget

Budget period

EDGAR

Equipment

Facilities

Grant

Grantee

Project

Project period

Secretary

State

Supplies

(b) Other Definitions. The following definitions also apply to this

part:

Family taxable income means--

(1) With regard to a dependent student, the taxable income of the

individual's parents;

(2) With regard to a dependent student who is an orphan or ward of

the court, no taxable income.

(3) With regard to an independent student, the taxable income of

the student and his or her spouse.

HEA means the Higher Education Act of 1965, as amended.

Independent student means a student who--

(1) Is an orphan or ward of the court;

(2) Is a veteran of the Armed Forces of the United States (as

defined in this section);

(3) Is a married individual; or

(4) Has legal dependents other than a spouse.

Institution of higher education means an educational institution as

defined in sections 1201(a) and 481 of the HEA.

Limited English proficiency with reference to an individual, means

an individual whose native language is other than English and who has

sufficient difficulty speaking, reading, writing, or understanding the

English language to deny that individual the opportunity to learn

successfully in classrooms in which English is the language of

instruction.

Low-income individual means an individual whose family taxable

income did not exceed 150 percent of the poverty level amount in the

calendar year preceding the year in which the individual initially

participates in the project. The poverty level amount is determined by

using criteria of poverty established by the Bureau of the Census of

the U.S. Department of Commerce.

Organization/Agency means an entity that is legally authorized to

operate programs such as Upward Bound in the State where it is located.

Participant means an individual who--(1) Is determined to be

eligible to participate in the project under Sec. 645.3;

(2) Except for veterans, is enrolled in a target school; and

(3) Has received more than one month of project services.

Potential first-generation college student means--

(1) An individual neither of whose parents received a baccalaureate

degree; or

(2) A student who, prior to the age of 18, regularly resided with

and received support from only one parent and whose supporting parent

did not receive a baccalaureate degree.

Secondary school means a school that provides secondary education

as determined under State law.

Target area means a discrete geographic area--as determined by the

applicant--to be served by an Upward Bound project.

Target school means a school designated by the applicant as a focus

of project services.

Veteran means a person who served on active duty as a member of the

Armed Forces of the United States--

(1) For a period of more than 180 days, any part of which occurred

after January 31, 1955, and who was discharged or released from active

duty under conditions other than dishonorable; or

(2) After January 31, 1955, and who was discharged or released from

active duty because of a service-connected disability.

(Authority: 20 U.S.C. 1001 et seq., 1070a-11, 1070a-13, 1088, 1141,

1141a, and 3283(a)).

Subpart B--What Kinds of Projects and Services Does the Secretary

Assist Under This Program?

Sec. 645.10 What kinds of projects are supported under the Upward

Bound program?

The Secretary provides grants to the following three types of

Upward Bound projects:

(a) Regular Upward Bound projects designed to prepare high school

students for programs of postsecondary education.

(b) Upward Bound Math and Science projects designed to prepare high

school students for postsecondary education programs and careers in the

fields of math and science.

(c) Veterans Upward Bound projects designed to assist veterans to

prepare for a program of postsecondary education.

(Authority: 20 U.S.C. 1070a-11 and 1070a-13)

Sec. 645.11 What services do all Upward Bound projects provide?

(a) An Upward Bound project that has received funds under this part

for at least two years must provide as part of its core curriculum,

instruction in--

(1) Mathematics through pre-calculus;

(2) Laboratory science;

(3) Foreign language;

(4) Composition; and

(5) Literature.

(b) All Upward Bound projects may provide such services as--

(1) Instruction in subjects other than those listed in

Sec. 645.11(a) that are necessary for success in education beyond high

school;

(2) Personal counseling;

(3) Academic advice and assistance in secondary school course

selection;

(4) Tutorial services;

(5) Exposure to cultural events, academic programs, and other

educational activities not usually available to disadvantaged youths;

(6) Activities designed to acquaint youths participating in the

project with the range of career options available to them;

(7) Instruction designed to prepare youths participating in the

project for careers in which persons from disadvantaged backgrounds are

particularly underrepresented;

(8) Mentoring programs involving elementary or secondary school

teachers, faculty members at institutions of higher education, students

or any combination of these person and other professional individuals;

and

(9) Programs and activities such as those described in paragraphs

(b)(1) through (b)(8) of this section that are specifically designed

for individuals with limited proficiency in English.

(Authority: 20 U.S.C. 1070a-13)

Sec. 645.12 How are regular Upward Bound projects organized?

(a) Regular Upward Bound projects--

(1) Must provide participants with a summer instructional component

that is designed to simulate a college-going experience for

participants, and an academic year component; and

(2) May provide a summer bridge component to those Upward Bound

participants who have graduated from secondary school and intend to

enroll in an institution of higher education in the following fall

term. A summer bridge component provides participants with services and

activities, including college courses, that aid in the transition from

secondary education to postsecondary education.

(b) A summer instructional component shall--

(1) Be six weeks in length unless the grantee can demonstrate to

the Secretary that a shorter period will not hinder the effectiveness

of the project nor prevent the project from achieving its goals and

objectives, and the Secretary approves that shorter period; and

(2) Provide participants with the services described in Sec. 645.11

on a daily basis.

(c)(1) Except as provided in paragraph (c)(2) of this section, an

academic year component shall provide program participants with the

services described in Sec. 645.11 on a weekly basis throughout the

academic year, and to the extent possible shall not prevent

participants from fully participating in academic and nonacademic

activities at the participants secondary school.

(2) If an Upward Bound project's location or the project's staff

are not readily accessible to participants because of distance or lack

of transportation, the grantee may, with the Secretary's permission,

provide project services to participants every two weeks during the

academic year.

(Authority: 20 U.S.C. 1070a-13)

Sec. 645.13 What additional services do Math and Science Upward Bound

projects provide and how are they organized?

(a) In addition to the services that must be provided under

Sec. 645.11(a) and may be provided in Sec. 645.11(b), a Math and

Science Upward Bound project must provide--

(1) Intensive instruction in mathematics and science including

hands-on experience in laboratories, field-sites and state-of-the-art

computer facilities;

(2) Activities that will involve participants with research faculty

from the applicant institution;

(3) Activities that will involve participants with graduate and

undergraduate science and mathematics majors who may serve as tutors

and counselors for participants; and

(b) A Math and Science Upward Bound project must provide--

(1) A summer component in the manner described in Sec. 645.12(b);

and

(2) An academic year component during which the project provides

services to participants at least once a month.

(Authority: 20 U.S.C. 1070a-11 and 1070a-13)

Sec. 645.14 What additional services do Veterans Upward Bound

projects provide?

In addition to the services that must be provided under

Sec. 645.11(a) and may be provided under Sec. 645.11(b), a Veterans

Upward Bound project must--

(a) Provide intensive basic skills development in those academic

subjects required for successful completion of a high school

equivalency program and for admission to postsecondary education

programs;

(b) Provide short-term remedial or refresher courses for veterans

who are high school graduates but who have delayed pursuing

postsecondary education. If the grantee is an institution of higher

education, these courses shall not duplicate courses otherwise

available to veterans at the institution; and

(c) Assist veterans in securing support services from other locally

available resources such as the Veterans Administration, State veterans

agencies, veterans associations, and other State and local agencies

that serve veterans.

(Authority: 20 U.S.C. 1070a-11 and 1070a-13)

Subpart C--How Does One Apply for an Award?

Sec. 645.20 How many applications for an Upward Bound award may an

eligible applicant submit?

(a) The Secretary accepts more than one application from an

eligible entity so long as the additional applications describe

projects that serve different populations; i.e., a group of potential

participants that cannot readily be served under the applicant's other

application due to differences in geographical location, academic

level, curricular emphasis, or age.

(b) Each application for funding under the Upward Bound program

shall state whether the application proposes a Regular Upward Bound

project, a Math and Science Upward Bound project, or a Veterans Upward

Bound project.

(Authority: 20 U.S.C. 1070a-11 and 1070 a-13)

Sec. 645.21 What assurances must an applicant include in an

application?

An applicant must assure the Secretary that--

(a) Not less than two-thirds of the project's participants will be

low-income individuals who are potential first generation college

students; and

(b) That the remaining participants be either low-income

individuals or potential first generation college students.

(Authority 20 U.S.C. 1070a-13)

Subpart D--How Does the Secretary Make a Grant?

Sec. 645.30 How does the Secretary decide which grants to make?

(a) The Secretary evaluates an application for a grant as follows:

(1)(i) The Secretary evaluates the application on the basis of the

selection criteria in Sec. 645.31.

(ii) The maximum score for all the criteria in Sec. 645.31 is 100

points. The maximum score for each criterion is indicated in

parentheses with the criterion.

(2)(i) If an applicant for a new grant proposes to continue to

serve substantially the same target population or schools that the

applicant is serving under an expiring project, the Secretary evaluates

the applicant's prior experience in delivering services under the

expiring Upward Bound project on the basis of the criteria in

Sec. 645.32.

(ii) The maximum score for all the criteria in Sec. 645.32 is 15

points. The maximum score for each criterion is indicated in

parentheses with the criterion.

(b) The Secretary makes grants in rank order on the basis of the

application's total scores under paragraphs (a)(1) and (a)(2) of this

section.

(c) If the total scores of two or more applications are the same

and there are insufficient funds for these applications after the

approval of higher-ranked applications, the Secretary uses whatever

remaining funds are available to serve geographic areas that have been

underserved by the Upward Bound program.

(d) The Secretary may decline to make a grant to an applicant that

carried out a project that involved the fraudulent use of funds under

section 402A(c)(2)(B) of the HEA.

(Authority: 20 U.S.C. 1070a-11, 1070a-13)

Sec. 645.31 What selection criteria does the Secretary use?

The Secretary uses the following criteria to evaluate an

application for a grant:

(a) Need for the project (24 points). In determining need for an

Upward Bound project, the Secretary reviews each type of project

(Regular, Math and Science, or Veterans) using different need criteria.

The criteria for each type of project contain the same total weight of

24 points and are as follows:

(1) The Secretary evaluates the need for a Regular Upward Bound

project in the proposed target area on the basis of--(i) High school

dropout rates in the target area;

(ii) College-going rates of the high schools in the target area;

(iii) Student/counselor ratios of the high schools in the target

area;

(iv) Income level of families within the target area;

(v) Education attainment levels of families within the target area;

and

(vi) Unaddressed academic, social, or economic problems of low-

income, potentially first-generation students in the target area.

(2) The Secretary evaluates the need for an Upward Bound Math and

Science project in the proposed target area on the basis of--

(i) The extent to which student performance on standardized

aptitude or achievement tests in mathematics and science in the

proposed target schools, is lower than State and national norms.

(ii) The extent to which target schools lack the resources to offer

a full range of mathematics and science courses, which are

prerequisites for entry into postsecondary programs in mathematics,

science, or engineering;

(iii) The extent to which attendance data, dropout rates, college-

going rates and student/counselor ratios in the target schools indicate

the importance of having additional educational opportunities available

to low-income, first-generation students; and

(iv) The extent to which there are eligible students in the target

schools who have demonstrated interest and capacity to pursue academic

programs and careers in mathematics and science, and who could benefit

from an Upward Bound Math and Science program.

(3) The Secretary evaluates the need for a Veterans Upward Bound

project in the proposed target area on the basis of clear evidence that

shows--

(i) The proposed target area lacks the services for eligible

veterans that the applicant proposes to provide;

(ii) A large number of veterans who reside in the target area are

low income and potential first generation;

(iii) A large number of veterans who reside in the target area,

have not completed high school or, have completed high school but have

not enrolled in a program of postsecondary education; and

(iv) Other indicators of need for a Veterans Upward Bound project,

including the presence of unaddressed academic or socio-economic

problems of veterans in the area.

(b) Objectives (9 points). The Secretary evaluates the quality of

the applicant's proposed project objectives on the basis of the extent

to which they--

(1) Include both process and outcome objectives relating to the

purpose of the applicable Upward Bound programs for which they are

applying;

(2) Address the needs of the target area or target population; and

(3) Are measurable, ambitious, and attainable over the life of the

project.

(c) Plan of operation (30 points). The Secretary determines the

quality of the applicant's plan of operation by assessing the quality

of--

(1) The plan for identifying, recruiting, and selecting

participants to be served by the project;

(2) The plan for assessing individual participant needs and for

monitoring the academic growth of participants while they are in an

Upward Bound project;

(3) A follow-up plan for tracking the academic accomplishments of

participants after they are no longer participating in the Upward Bound

project;

(4) The plan for locating the project within the applicant's

organizational structure, and the plan to inform the applicant

community of the goals and objectives of the project;

(5) The various services and activities to be provided to project

participants and their parents;

(6) The extent to which the timelines presented are appropriate for

accomplishing critical elements of the project;

(7) The extent to which proposed services and activities relate

logically to the needs in the target area;

(8) The plan to ensure effective and efficient administration of

the project, including, but not limited to matters such as financial

management, quality control, student records management, personnel

management, and the plan for coordinating the Upward Bound project with

other programs for disadvantaged students;

(9) The quality of the applicants plan to use its resources and

personnel to achieve project objectives; and

(10) The plan to work cooperatively with key administrative,

teaching and counseling personnel at the target schools to achieve

project objectives.

(d) Applicant and community support (16 points). The Secretary

evaluates the applicant and community support for the proposed project

on the basis of the extent to which the applicant demonstrates that--

(1) The applicant is committed to supplementing the project with

resources such as space, furniture and equipment, supplies, and

personnel that enhance the project;

(2) The applicant has secured written commitments of support from

schools, community organizations, and businesses, including the

commitment of resources that will enhance the project as described in

paragraph (d)(1) of this section.

(e) Quality of personnel (8 points). To determine the quality of

personnel the applicant plans to use, the Secretary looks for

information that shows--

(1) The qualifications required of the project director, including

formal educational training in fields related to the objectives of the

project and experience in designing, managing, or implementing similar

projects;

(2) The qualifications required of each of the other personnel to

be used in the project, including formal educational training and work

experience in fields related to the objectives of the project; and

(3) The quality of the applicant's plan for employing personnel who

have succeeded in overcoming barriers similar to those confronting the

project's target population.

(f) Budget and cost effectiveness (5 points). The Secretary reviews

each application to determine the extent to which--

(1) The budget for the project is adequate to support planned

project services and activities; and

(2) Costs are reasonable in relation to the objectives and scope of

the project.

(g) Evaluation plan (8 points). The Secretary evaluates the quality

of the evaluation plan for the project on the basis of the extent to

which the applicant's methods of evaluation--

(1) Are appropriate to the project and include both quantitative

and qualitative evaluation measures; and

(2) Examine in specific and measurable ways, the success of the

project in--

(i) Making progress toward achieving its process objectives; and

(ii) Achieving its outcomes objectives.

(Authority: 20 U.S.C. 1070a-16)

Sec. 645.32 How does the Secretary evaluate prior experience?

(a) In the case of an application described in Sec. 645.30(a)(2),

the Secretary reviews information relating to an applicant's

performance under its expiring Upward Bound grant. This information

includes information derived from annual performance reports, audit

reports, site visit reports, project evaluation reports, and any other

verifiable information submitted by the applicant.

(b) The Secretary evaluates the applicant's prior experience in

delivering services on the basis of the following criteria:

(1) (3 points) Whether the applicant consistently provided services

to the number of participants required to be served under the approved

application;

(2) (3 points) The extent to which project participants'

competencies, aptitude and motivation necessary for entry into an

educational program beyond high school have improved;

(3) (3 points) The extent to which project participants are

retained in the project throughout their secondary education program;

(4) (3 points) The extent to which project participants undertake

programs of postsecondary education upon completion of project

activities and secondary education; and

(5) (3 points) The extent to which former project participants

succeeded in education beyond high school, including the extent to

which they graduate from postsecondary education programs;

(Authority: 20 U.S.C. 1070a-11 and 1070a-13)

Sec. 645.33 How does the Secretary set the amount of a grant?

(a) The Secretary sets the amount of a grant on the basis of--

(1) 34 CFR 75.232 and 75.233, for new grants; and

(2) 34 CFR 75.253, for the second and subsequent years of a project

period.

(b) If the circumstances described in section 402A(b)(3) of the HEA

exist, the Secretary uses the available funds to set the amount of the

grant beginning in fiscal year 1995 at the lesser of--

(1) $190,000; or

(2) The amount requested by the applicant.

(Authority: 20 U.S.C. 1070a-11)

Sec. 645.34 How long is a project period?

(a) Except as provided in paragraph (b) of this section, a project

period under the Upward Bound program is four years.

(b) The Secretary approves a project period of five years for

applications that score in the highest ten percent of all applications

approved for new grants under the criteria in Sec. 645.31.

(Authority: 20 U.S.C. 1070a-11)

Subpart E--What Conditions Must Be Met by a Grantee?

Sec. 645.40 What are allowable costs?

The cost principles that apply to the Upward Bound Program are in

34 CFR Part 74, Subpart Q. Allowable costs include the following if

they are reasonably related to the objectives of the project:

(a) In-service training of project staff.

(b) Rental of space if space is not available at the host

institution and the space rented is not owned by the host institution.

(c) For participants in an Upward Bound residential summer

component, room and board--computed on a weekly basis--not to exceed

the weekly rate the host institution charges regularly enrolled

students at the institution.

(d) Room and board for those persons responsible for dormitory

supervision of participants during a residential summer component.

(e) Educational pamphlets and similar materials for distribution at

workshops for the parents of participants.

(f) Student activity fees for Upward Bound participants.

(g) Admissions fees, transportation, Upward Bound T-shirts, and

other costs necessary to participate in field trips, attend educational

activities, visit museums, and attend other events that have as their

purpose the intellectual, social, and cultural development of

participants.

(h) Costs for one project-sponsored banquet or ceremony.

(i) Tuition costs for postsecondary credit courses at the host

institution for participants in the summer bridge component.

(j)(1) Accident insurance to cover any injuries to a project

participant while participating in a project activity; and

(2) Medical insurance and health service fees for the project

participants while participating full-time in the summer component.

(k) Courses in English language instruction for project

participants with limited proficiency in English, only if these classes

are not available at a target school.

(l) Transportation costs of participants for regularly scheduled

project activities.

(m) Transportation, meals, and overnight accommodations for staff

members when they are required to accompany participants in project

activities such as field trips.

(n) Purchase of computer hardware, computer software, or other

equipment for student development, project administration and

recordkeeping, if the applicant demonstrates to the Secretary's

satisfaction that the equipment is required to meet the objectives of

the project more economically or efficiently.

(Authority: 20 U.S.C. 1070a-11 and 1070a-13)

Sec. 645.41 What are unallowable costs?

Costs that may not be charged against a grant under this program

include the following:

(a) Research not directly related to the evaluation or improvement

of the project.

(b) Meals for staff except as provided in Sec. 645.40(d) and (m)

and in paragraph (c) of this section.

(c) Room and board for administrative and instructional staff

personnel who do not have responsibility for dormitory supervision of

project participants during a residential summer component, unless

these costs are approved by the Secretary.

(d) Room and board for participants in Veterans Upward Bound

projects.

(e) Construction, renovation or remodeling of any facilities.

(f) Tuition, stipends, or any other form of student financial

support for project staff.

(Authority: 20 U.S.C. 1070a-11 and 1070a-13)

Sec. 645.42 What are Upward Bound stipends?

(a) An Upward Bound project may provide stipends for all

participants who participate on a full-time basis.

(b) In order to receive the stipend, the participant must show

evidence of satisfactory participation in activities of the project

including--

(1) Regular attendance; and

(2) Performance in accordance with standards established by the

grantee and described in the application.

(c) The grantee may prorate the amount of the stipend according to

the number of the scheduled sessions in which the student participated.

(d) The following rules govern the amounts of stipends a grantee is

permitted to provide:

(1) For Regular Upward Bound projects and Upward Bound Math and

Science projects--

(i) For the academic year component, the stipend may not exceed $40

per month; and

(ii) For the summer component, the stipend may not exceed $60 per

month.

(2) For Veterans Upward Bound projects, the stipend may not exceed

$40 per month.

(Authority: 20 U.S.C. 1070a-11 and 1070a-13)

Sec. 645.43 What other requirements must a grantee meet?

(a) Number of participants. (1) In each budget period, Regular

Upward Bound projects shall serve between 50 and 150 participants and

Upward Bound Math and Science projects shall serve between 50 and 75

participants.

(2) Veterans Upward Bound projects shall serve a minimum of one

hundred and twenty veterans in each budget period.

(3) The Secretary may waive the requirements of paragraphs (a)(1)

and (a)(2) of this section if the applicant can demonstrate that the

project will be more cost effective and consistent with the objectives

of the project if a greater or lesser number of participants will be

served.

(b) Project director. (1) A grantee shall employ a full-time

project director unless paragraph (b)(3) of this section applies.

(2) The grantee shall give the project director sufficient

authority to administer the project effectively.

(3) The Secretary waives the requirement in paragraph (b)(1) of

this section if the applicant demonstrates that the requirement will

hinder coordination--

(i) Among the Federal TRIO Programs; or

(ii) Between the programs funded under sections 402A through 410 of

the HEA and similar programs funded through other sources.

(c) Recordkeeping. For each participant, a grantee shall maintain a

record of--

(1) The basis for the grantee's determination that the participant

is eligible to participate in the project under Sec. 645.3;

(2) The basis for the grantee's determination that the participant

has a need for academic support in order to pursue successfully a

program of education beyond secondary school;

(3) The services that are provided to the participant;

(4) The educational progress of the participant during high school

and, to the degree possible, during the participant's pursuit of a

postsecondary education program.

(Authority: 20 U.S.C. 1070a-11 and 1070a-13).

[FR Doc. 94-21744 Filed 9-1-94; 8:45 am]

BILLING CODE 4000-01-P