[Federal Register: September 30, 2003 (Volume 68, Number 189)]
[Notices]
[Page 56274-56277]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr30se03-54]
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DEPARTMENT OF EDUCATION
RIN 1820 ZA30
National Institute on Disability and Rehabilitation Research
AGENCY: Office of Special Education and Rehabilitative Services,
Department of Education.
ACTION: Notice of final priorities.
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SUMMARY: The Assistant Secretary for Special Education and
Rehabilitative Services announces final priorities for the Alternative
Financing Mechanisms Program (AFP) under title III of the Assistive
Technology Act of 1998 (AT Act) that is administered by the National
Institute on Disability and Rehabilitation Research (NIDRR) and the
Access to Telework Fund Program (Telework) under section 303(b) of the
Rehabilitation Act of 1973, as amended (Rehab Act), that is
administered by the Rehabilitation Services Administration (RSA). The
Assistant Secretary may use these priorities for competitions in fiscal
year (FY) 2003 and later years.
Waiver of Delayed Effective Date
The Administrative Procedure Act requires that a proposed rule be
published at least 30 days before its effective date, except as
otherwise provided for good cause (20 U.S.C. 553(d)(3)). In order to
make timely grant awards, the Secretary has determined that a delayed
effective date is impracticable.
FOR FURTHER INFORMATION CONTACT: Carol Cohen, U.S. Department of
Education, 400 Maryland Avenue, SW., room 3420, Switzer Building,
Washington, DC 20202-2645. Telephone: (202) 205-5666 or via the Internet: carol.cohen@ed.gov.
If you use a telecommunications device for the deaf (TDD), you may
call the TDD number at (202) 205-4475.
Individuals with disabilities may obtain this document in an
alternative format (e.g., Braille, large print, audiotape, or computer
diskette) on request to the contact person listed under FOR FURTHER
INFORMATION CONTACT.
SUPPLEMENTARY INFORMATION: We published a notice of proposed priorities
and change to the application process for the Alternative Financing
Mechanisms Program (AFP) and the Access to Telework Fund Program
(Telework) in the Federal Register on August 5, 2003 (68 FR 46411).
There are no significant differences between the notice of proposed
priorities and this notice of final priorities.
Public Comment
In the notice of proposed priorities, we invited comments on the
proposed priorities. The only substantive comments we received
suggested changes the law does not authorize us to make under the
applicable statutory authority.
Note: This notice does not solicit applications. In any year in
which we choose to use one or more of these priorities, we invite
applications through a notice in the Federal Register. A notice
inviting applications for FY 2003 awards was published in the
Federal Register on August 5, 2003 (68 FR 46418).
When inviting applications we designate each priority as absolute,
competitive preference, or invitational. The effect of each type of
priority follows:
Absolute priority: Under an absolute priority, we consider only
applications that meet the priority (34 CFR 75.105(c)(3)).
Competitive preference priority: Under a competitive preference
priority, we give competitive preference to an application by either
(1) awarding additional points, depending on how well or the extent to
which the application meets the priority (34 CFR 75.105(c)(2)(i)); or
(2) selecting an application that meets the competitive priority over
an application of comparable merit that does not meet the competitive
priority (34 CFR 75.105(c)(2)(ii)).
Invitational priority: Under an invitational priority, we are
particularly interested in applications that meet the invitational
priority. However, we do not give an application that meets the
priority a competitive or absolute preference over other applications
(34 CFR 75.105(c)(1)).
Priorities
Eligibility for an AFP Grant
States that receive or have received grants under section 101 of
the AT Act are eligible for an AFP grant. Under section 3(a)(13)(A) of
the AT Act, State means each of the several States of the United
States, the District of Columbia, the Commonwealth of Puerto Rico, the
United States Virgin Islands, Guam, American Samoa, and the
Commonwealth of the Northern Mariana Islands.
Eligibility for a Telework Grant
States as defined in the AT Act and governing bodies of American
Indian tribes located on Federal and State reservations consistent with
section 7(19)(B) of the Rehab Act are eligible for a Telework grant.
Consortia of States and American Indian tribes are also eligible for a
Telework grant.
Joint Administration of Grants
States may jointly apply for and administer an AFP grant and a
Telework grant. States that submit one application for the two
priorities must meet the requirements for each priority and will
compete separately under each priority.
Background
The background statements for the following priorities were
published in the notice of proposed priorities on August 5, 2003 (68 FR
46411).
Priority 1: Alternative Financing Mechanism Program
The purpose of these requirements is to increase the funding for
and provision of AT (Sec. 2(b)(1)(A)). The AFP will: (1) achieve the
program's short-term goal of purchasing AT through alternative
financing mechanisms for individuals with disabilities, and other
eligible parties; and (2) achieve the program's long-term goals of
establishing a nationwide network of permanent State AFPs that promote
independence and choice.
States that receive or have received grants under section 101 of
the AT Act are eligible to compete for an AFP (Sec. 303(a)). In its
application, a State must identify and describe one or more of the
following types of AFP programs that the State will implement:
(1) a low-interest loan fund;
(2) an interest buy-down program;
(3) a revolving loan fund;
(4) a loan guarantee or insurance program;
(5) a program operated by a partnership among private entities for
the purchase, lease, or other acquisition of AT devices or AT services;
or
[[Page 56275]]
(6) another mechanism that meets the requirements of title III and
is approved by the Secretary (Sec. 301(b)).
According to section 301(a) of the AT Act, the AFP is designed to
allow individuals with disabilities and their family members,
guardians, advocates, and authorized representatives to purchase AT.
The terms ``AT devices'' and ``AT services'' are defined in section
3(a) of the AT Act. When family members, guardians, advocates, and
authorized representatives (including employers who have been
designated by an individual with a disability as an authorized
representative) receive AFP support to purchase AT, the purchase must
be on behalf of an individual with a disability, i.e., the AT that is
purchased must be solely for the benefit of that individual.
In addition, an applicant must submit the following assurances:
(1) Nature of the Match: an assurance that the State will provide
the non-Federal share (25 percent) of the cost of the AFP in cash, from
State, local, or private sources (Sec. 303(b)(1)). An applicant must
identify the amount of Federal funds the State is requesting and the
amount of cash that the State is going to generate as a match as well
as the source of the cash.
(2) Permanence of the Program: an assurance that the AFP will
continue on a permanent basis (Sec. 303(b)(2)).
A State's obligation to implement the AFP program consistent with
all of the requirements, including reporting requirements, continues
throughout the project period until there are no longer any funds
available to operate the AFP and all outstanding loans have been
repaid.
If a State decides to terminate its AFP while there are still funds
available to operate the program, the State must return the Federal
share of the funds remaining in the permanent separate account to NIDRR
(e.g., 75 percent if the original State:Federal match was 1:3) except
for funds being used for grant purposes, such as loan guarantees for
outstanding loans. However, before closing out its grant, the State
must also return the Federal share of any principal and interest
remitted to it on outstanding loans and any other funds remaining in
the permanent separate account, such as funds being used as loan
guarantees for those loans.
(3) Consumer Choice and Control: an assurance that, and information
describing the manner in which, the AFP will expand and emphasize
consumer choice and control (Sec. 303(b)(3)).
(4) Supplement Not Supplant: an assurance that the funds made
available through the grant to support the AFP will be used to
supplement and not supplant other Federal, State, and local public
funds expended to provide alternative financing mechanisms (Sec.
303(b)(4)).
(5) Permanent Separate Account: an assurance that the State will
ensure that (A) all funds that support the AFP, including funds repaid
during the life of the program, will be placed in a permanent separate
account and identified and accounted for separately from any other
fund; (B) if the organization administering the program invests funds
within this account, the organization will invest the funds in low-risk
securities in which a regulated insurance company may invest under the
law of the State; and (C) the organization will administer the funds
with the same judgment and care that a person of prudence, discretion,
and intelligence would exercise in the management of the financial
affairs of such person (Sec. 303(b)(5)).
During the first 12-month budget period, a grantee must deposit its
matching funds and its Federal award funds in the permanent and
separate account.
(6) Use and Control of Funds: an assurance that (A) funds comprised
of the principal and interest from the account described in paragraph
(5) will be available to support the AFP; and (B) any interest or
investment income that accrues on or derives from such funds after such
funds have been placed under the control of the organization
administering the AFP, but before such funds are distributed for
purposes of supporting the program, will be the property of the
organization administering the program (Sec. 303(b)(6)).
This assurance regarding the use and control of funds applies to
all funds derived from the AFP including the original Federal award,
the State matching funds, AFP funds generated by either interest
bearing accounts or investments, and all principal and interest paid by
borrowers of the AFP who are extended loans from the permanent separate
account.
(7) Indirect Costs: an assurance that the percentage of the funds
made available through the grant that is used for indirect costs will
not exceed 10 percent (Sec. 303(b)(7)).
For each 12-month budget period, grantees must recalculate their
allowable indirect cost rate, which may not exceed 10 percent of the
amount of funds in the permanent and separate account and any
outstanding loans from that account.
(8) Contract with a Community-based Organization: an assurance that
the State will enter into a contract with a community-based
organization (including a group of such organizations) that has
individuals with disabilities involved in organizational decision
making at all organizational levels, to administer the AFP. The
contract will: (1) Include a provision requiring that the program
funds, including the Federal and non-Federal shares of the cost of the
program, be administered in a manner consistent with the provisions of
title III; (2) include any provision the Secretary requires concerning
oversight and evaluation necessary to protect Federal financial
interests; and (3) require the community-based organization to enter
into a contract, to expand opportunities under title III and facilitate
administration of the AFP, with commercial lending institutions or
organizations or State financing agencies (Sec. 304 (a) and (b)).
During the first 12-month budget period, a grantee must enter into
the contract with a CBO and ensure that the CBO has entered into the
contract with the commercial lending institutions or organizations or
State financing agencies.
(9) Administrative Policies and Procedures: an assurance that the
State and any community-based organization that enters into a contract
with the State under title III, will submit to the Secretary the
following policies and procedures for administration of the AFP: (1) A
procedure to review and process in a timely manner requests for
financial assistance for immediate and potential technology needs,
including consideration of methods to reduce paperwork and duplication
of effort, particularly relating to need, eligibility, and
determination of the specific AT device or service to be financed
through the program; (2) A policy and procedure to ensure that access
to the AFP shall be given to consumers regardless of type of
disability, age, income level, location of residence in the State, or
type of AT device or AT service for which financing is requested
through the program; and (3) A procedure to ensure consumer-controlled
oversight of the program (Sec. 305).
Grantees must submit the administrative policies and procedures
required in this assurance within six months of the start of the grant.
(10) Data Collection: an assurance that the State will collect the
following: (1) Information on the type of alternative financing
mechanisms used by the State and the community-based organization with
which each State entered into a
[[Page 56276]]
contract, under the program (Sec. 307); (2) the amount of assistance
given to consumers through the program (who shall be classified by age,
type of disability, type of AT device or AT service financed through
the program, geographic distribution within the State, gender, and
whether the consumers are part of an underrepresented population or
rural population) (Sec. 307); and (3) information on the program's
short-term and long-term goals.
Grantees must enter the data requested in this assurance, and other
data the Secretary may require, in the system developed by the
Secretary. The Technical Assistance provider has developed a
(voluntary) web-based data collection instrument to assist the AFP
grantees for this purpose. For more information on the data collection
system, products, and reports, see http://www.resna.org/AFTAP/loan/index.html.
Grantees must enter the data elements contained in this
form as well as specific information (to be determined) pertaining to
the short-term and long-terms goals.
Through the analysis of data collected under the following
reporting requirements, the Secretary will assess grantee success in
meeting the program's overall goals of:
(1) increasing access to alternative financing programs for the
purchases of AT for individuals with disabilities; and
(2) establishing a nationwide network of permanent State AFPs that
promote independence and choice.
Performance measures used to determine whether the goals have been
accomplished will include: (1) Number of loan applications; (2) number
of loans; (3) amount and terms of each loan; (4) number of loan
applications denied and the reasons for the denials; (5) number of
individuals with disabilities who obtained AT; (6) purpose and type of
the AT purchased; (7) default rate and net losses; (8) number of States
that have established new loan program or expanded existing loan
programs; and (9) State loan capacity.
Grantee evaluation systems must be capable of collecting and
analyzing this and any additional required information.
Priority 2: Access to Telework Fund
In its application, a State or Indian tribe must identify and
describe one or more of the following types of programs that the State
will implement:
(1) a low-interest loan fund;
(2) an interest buy-down program;
(3) a revolving loan fund;
(4) a loan guarantee or insurance program;
(5) a program operated by a partnership among private entities for
the purchase, lease, or other acquisition of computers and other
equipment, including adaptive equipment;
(6) another mechanism that meets the requirements and intent of
this program and is approved by the Secretary.
In addition, an applicant must submit the following assurances:
(1) Nature of the Match: an assurance that the State or Indian
tribe will provide the non-Federal share (10 percent) of the cost of
Telework in cash, from State or Indian tribe, local, or private
sources. An applicant must identify the amount of Federal funds it is
requesting and the amount of cash that the State or Indian tribe is
going to generate as a match as well as the source of the cash.
(2) Permanence of the Program: an assurance that Telework will
continue on a permanent basis.
A State or Indian tribe's obligation to implement Telework
consistent with all of the requirements, including reporting
requirements, continues throughout the project period until there are
no longer any funds available to operate Telework and all outstanding
loans have been repaid.
If a State or Indian tribe decides to terminate its Telework grant
while there are still funds available to operate the program, the State
or Indian tribe must immediately return the Federal share of the funds
remaining in the permanent separate account to RSA (e.g., 90 percent if
the original State or Indian tribe: Federal match was 1:9) except for
funds being used for grant purposes, such as loan guarantees for
outstanding loans. However, before closing out its grant, the State or
Indian tribe must also return the Federal share of any principal and
interest remitted to it on outstanding loans and any other funds
remaining in the permanent separate account, such as funds being used
as loan guarantees for those loans.
(3) Consumer Choice and Control: an assurance that, and information
describing the manner in which, Telework will expand and emphasize
consumer choice and control.
(4) Supplement Not Supplant: an assurance that the funds made
available through the grant to support Telework will be used to
supplement and not supplant other Federal, State or Indian tribe, and
local public funds to support similar services to individuals with
disabilities.
(5) Permanent Separate Account: an assurance that the State or
Indian tribe will ensure that (A) all funds that support Telework,
including funds repaid during the life of the program, will be placed
in a permanent separate account and identified and accounted for
separately from any other fund; (B) if the organization administering
the program invests funds within this account, the organization will
invest the funds in low-risk securities in which a regulated insurance
company may invest under the law of the State; and (C) the organization
will administer the funds with the same judgment and care that a person
of prudence, discretion, and intelligence would exercise in the
management of the financial affairs of such person.
During the first 12-month budget period, a grantee must deposit its
matching funds and its Federal award funds in the permanent and
separate account.
(6) Use and Control of Funds: an assurance that (A) funds comprised
of the principal and interest from the account described in paragraph
(5) will be available to support Telework; and (B) any interest or
investment income that accrues on or derives from such funds after such
funds have been placed under the control of the organization
administering Telework, but before such funds are distributed for
purposes of supporting the program, will be the property of the
organization administering the program.
This assurance regarding the use and control of funds applies to
all funds derived from Telework including the original Federal award,
the State or Indian tribe matching funds, Telework funds generated by
either interest bearing accounts or investments, and all principal and
interest paid by borrowers of Telework who are extended loans from the
permanent separate account.
(7) Indirect Costs: an assurance that the percentage of the funds
made available through the grant that is used for indirect costs will
not exceed 10 percent.
For each 12-month budget period, grantees must recalculate their
allowable indirect cost rate, which may not exceed 10 percent of the
amount of funds in the permanent and separate account and any
outstanding loans from that account.
(8) Administrative Policies and Procedures: an assurance that the
State or Indian tribe will submit to the Secretary the following
policies and procedures for administration of Telework: (1) A procedure
to review and process in a timely manner requests for financial
assistance for immediate and potential needs, including consideration
of methods to reduce paperwork and duplication of effort, particularly
relating to need, eligibility, and determination of the specific device
or
[[Page 56277]]
service to be financed through the program; (2) A policy and procedure
to ensure that access to Telework shall be given to consumers
regardless of type of disability, age, income level, location of
residence in the State or Indian tribe, or type of device or service
for which financing is requested through the program; and (3) A
procedure to ensure consumer-controlled oversight of the program.
Grantees must submit the administrative policies and procedures
required in this assurance within six months of the start of the grant.
(9) Data Collection: an assurance that the State or Indian tribe
will collect the following: (A) Information on whether the program is
achieving its short-term goal of increasing access to technology for
disabled individuals through the provision of loans that must be used
to purchase computers and other equipment, including adaptive
equipment, so that individuals with disabilities can telework from home
and other remote sites; and (B) Information on whether the program is
achieving its long-term goal of increasing employment opportunities and
competitive employment outcomes for individuals with disabilities.
Grantees must enter the data requested in this assurance, and other
data the Secretary may require, in the system developed by the
Secretary.
Through the analysis of data collected under the following
reporting requirements, the Secretary will assess grantee success in
meeting the program's overall goals of: (1) Increasing access to
technology for disabled individuals; and (2) Increasing employment
opportunities and competitive employment outcomes for individuals with
disabilities.
Performance measures used to determine whether the goals have been
accomplished will include: (1) Number of loan applications; (2) number
of loans; (3) amount and terms of each loan; (4) number of loan
applications denied and the reasons for the denials; (5) the types of
equipment financed, including the total number of each type of
equipment financed; (6) number of individuals who obtained telework
employment as a result of Telework loans; (7) default rate and net
losses; and (8) the total financial contribution to the project,
including the Federal share and non-Federal matching contributions, and
the source of the non-Federal share.
Grantee evaluation systems must be capable of collecting and
analyzing this and any additional information as required by the
Secretary.
In addition, each State applicant must provide the following
assurance:
Contract with a Community-based Organization: an assurance that the
State (note: Indian tribes are exempt from this requirement) will enter
into a contract with a community-based organization (including a group
of such organizations) that has individuals with disabilities involved
in organizational decision making at all organizational levels, to
administer Telework. The contract will: (1) Include a provision
requiring that the program funds, including the Federal and non-Federal
shares of the cost of the program, be administered in a manner
consistent with the provisions of this priority; (2) include any
provision the Secretary requires concerning oversight and evaluation
necessary to protect Federal financial interests; and (3) require the
community-based organization to enter into a contract, to expand
opportunities under this priority and facilitate administration of
Telework, with commercial lending institutions or organizations or
State financing agencies.
During the first 12-month budget period, a grantee must enter into
the contract with a CBO and ensure that the CBO has entered into the
contract with the commercial lending institutions or organizations or
State financing agencies.
Applicability of Education Department General Administrative
Regulations (EDGAR) to AFP and Telework
In general, EDGAR applies to these two grants except to the extent
it is inconsistent with the purpose and intent of title III of the AT
Act, section 303(b) of the Rehab Act, or the requirements in this
notice. Specifically, grantees are exempt from section 80.21(i)
regarding interest earned on advances and the addition method in
section 80.25(g)(2) applies to program income rather than the deduction
method in section 80.25(g)(1). Also, sections 75.560-75.564 do not
apply to the extent that these sections of EDGAR are inconsistent with
the AFP and Telework requirement that indirect costs cannot exceed 10
percent. Finally, section 75.125, which requires applicants to submit a
separate application for each program, does not apply to this
competition.
Electronic Access to This Document
You may review this document, as well as all other Department of
Education documents published in the Federal Register, in text or Adobe
Portable Document Format (PDF) on the Internet at the following site:
http://www.ed.gov/news/fedregister.
To use PDF you must have Adobe Acrobat Reader, which is available
free at this site. If you have questions about using PDF, call the U.S.
Government Printing Office (GPO), toll free, at 1-888-293-6498; or in
the Washington, DC, area at (202) 512-1530.
Note: The official version of this document is the document
published in the Federal Register. Free Internet access to the
official edition of the Federal Register and the Code of Federal
Regulations is available on GPO access at: http://www.gpoaccess.gov/nara/index.html
.
(Catalog of Federal Domestic Assistance Number 84.224C, Alternative
Financing Program and 84.235T, Access to Telework Fund Program.)
Program Authority: 29 U.S.C. 773(b) and 29 U.S.C. 3051-3056.
Dated: September 25, 2003.
Robert H. Pasternack,
Assistant Secretary for Special Education and Rehabilitative Services.
[FR Doc. 03-24704 Filed 9-29-03; 8:45 am]
BILLING CODE 4000-01-P