[Federal Register: April 29, 2003 (Volume 68, Number 82)]
[Proposed Rules]
[Page 23013-23016]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr29ap03-40]
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Part V
Department of Agriculture
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Cooperative State Research, Education, and Extension Service
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7 CFR Part 3419
Matching Funds Requirement for Formula Funds for Agricultural Research
and Extension Activities at 1890 Land-Grant Institutions, Including
Tuskegee University and West Virginia State College; Proposed Rule
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DEPARTMENT OF AGRICULTURE
Cooperative State Research, Education, and Extension Service
7 CFR Part 3419
RIN 0524-AA25
Matching Funds Requirement for Formula Funds for Agricultural
Research and Extension Activities at 1890 Land-Grant Institutions,
Including Tuskegee University and West Virginia State College
AGENCY: Cooperative State Research, Education, and Extension Service,
USDA.
ACTION: Proposed rule.
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SUMMARY: The Cooperative State Research, Education, and Extension
Service (CSREES) proposes to revise part 3419 to title 7, subtitle B,
chapter XXXIV of the Code of Federal Regulations, for the purpose of
implementing the statutory amendments applicable to the matching
requirements for Federal agricultural research and extension formula
funds for 1890 land-grant institutions, including Tuskegee University
and West Virginia State College. These matching requirements were
amended by section 7212 of the Farm Security and Rural Investment Act
of 2002 (FSRIA).
DATES: Submit comments on or before June 30, 2003.
ADDRESSES: Address all comments to CSREES-USDA; Office of Extramural
Programs; Policy and Program Liaison Staff; Mail Stop 2299; 1400
Independence Avenue, SW.; Washington, DC 20250-2299. Comments may be
hand-delivered to CSREES-USDA; Office of Extramural Programs; Policy
and Program Liaison Staff; Waterfront Centre, Rm. 2242; 800 9th Street,
SW.; Washington, DC 20024. Comments may be mailed or sent
electronically to oep@reeusda.gov.
FOR FURTHER INFORMATION CONTACT: George Cooper, Deputy Administrator,
Science and Education Resources Development; CSREES/USDA; Mail Stop
2250; 1400 Independence Avenue, SW.; Washington, DC 20250-2250; at
(202) 401-2655, (202) 720-3945 (fax) or via electronic mail at
gcooper@reeusda.gov.
SUPPLEMENTARY INFORMATION:
Background and Purpose
The Cooperative State Research, Education, and Extension Service
(CSREES) is revising part 3419 of title 7, subtitle B, chapter XXXIV of
the Code of Federal Regulations which implements the matching
requirements provided under section 1449 of the National Agricultural
Research, Extension, and Teaching Policy Act of 1977 (NARETPA) for
agricultural research and extension formula funds authorized for the
1890 land-grant institutions including Tuskegee University and West
Virginia State College. This revision is required due to the statutory
amendments of sections 7212 and 7213 of the Farm Security and Rural
Investment Act of 2002 (FSRIA), Public Law 107-171. Section 7212 of
FSRIA revised the matching requirements in section 1449 from 50 percent
of the formula funds distributed to each eligible institution in fiscal
year (FY) 2002 to 60 percent of the formula funds distributed in FY
2003; 70 percent in FY 2004; 80 percent in FY 2005; 90 percent in FY
2006; and 100 percent in FY 2007 and thereafter. In addition, this
section provided the Secretary of Agriculture with a new waiver
authority for the matching funds requirement above the 50 percent level
for any fiscal year for an eligible institution of a State if the
Secretary determines that the State will be unlikely to satisfy the
matching requirement. The Secretary's prior waiver authority extended
only to FY 2000 formula funds. The proposed rule also implements
section 753 of the Agriculture, Rural Development, Food and Drug
Administration, and Related Agencies Appropriations Act, 2002, Pub. L.
107-76, to extend this regulation to West Virginia State College.
Prior to FSRIA, section 3(d) of the Hatch Act (7 U.S.C. 361c(d))
and section 3(e) of the Smith-Lever Act (7 U.S.C. 343(e)) subjected the
1862 land-grant institutions in American Samoa, the Commonwealth of
Puerto Rico, Guam, the Commonwealth of Northern Marianas Islands, the
Virgin Islands of the United States, and the College of Micronesia to
the same matching requirements as those applicable to an eligible
institution under section 1449 of NARETPA. In implementing these Hatch
Act and Smith-Lever Act requirements, CSREES promulgated the existing
rule also to address the matching requirements for the insular area
land-grant institutions. Section 7213 of FSRIA amended the Hatch Act
and Smith-Lever Act to no longer subject the insular area land-grant
institutions to the NARETPA section 1449 matching requirements.
Instead, section 3(d) of the Hatch Act and section 3(e) of the Smith-
Lever Act provide for the insular areas a 50 percent matching
requirement of the Federal formula funds beginning in fiscal year 2003.
Both Acts empower the Secretary of Agriculture to waive these matching
requirements for any fiscal year if the Secretary determines that the
government of the insular area is unlikely to meet the requirement for
that fiscal year. Promulgation of the insular area land-grant
institution matching requirements for Federal formula funds will be
done at a later date and through a separate rulemaking. The proposed
revised part 3419 will address only the matching requirements for the
1890 land-grant institutions.
CSREES also proposes to clarify the definition of ``Qualifying
Educational Activities'' by proposing that the ``Qualifying Educational
Activities'' meet the definition of ``Food and Agricultural Sciences''
under Sec. 1404(8) of NARETPA (7 U.S.C. 3103(8)) and the definition of
``Teaching and Education'' under section 1404(15) of NARETPA (7 U.S.C.
3103(15)). In addition, CSREES is proposing that the word ``approved''
be deleted in Sec. 3419.6 ``Use of matching funds'' as the use of this
word has been misleading. CSREES does not consider and approve the
types of ``Qualifying Educational Activities'' used to meet the
matching requirements. It is the responsibility of the eligible
institution to ensure that the ``Qualifying Education Activities'' meet
the definition of ``Food and Agricultural Sciences'' and ``Teaching and
Education.'' The proposed rule also will remove the outdated
requirement in the current Sec. 3419.3 for eligible institutions to
submit a 1999 report. The proposed rule will revise Sec. 3419.3 to
address the Secretary's new waiver authority discussed above.
Classification
This proposed rule was reviewed under Executive Order 12866 and was
determined to be nonsignificant. It will not create a serious
inconsistency or otherwise interfere with an action planned by another
agency. It will not materially alter the budgetary impact of
entitlement, grants, user fees, or loan programs, or the rights and
obligations of the recipients thereof. It will not raise novel legal or
policy issues arising out of legal mandates, the President's
priorities, or principles set forth in Executive Order 12866. This
proposed rule will not have an annual effect on the economy of $100
million or more or adversely affect in a material way the economy, a
sector of the economy, productivity, competition, jobs, the
environment, public health or safety, or State, local, or tribal
governments or communities.
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Regulatory Flexibility Act
The Department certifies that this proposed rule will not have a
significant impact on a substantial number of small entities as defined
in the Regulatory Flexibility Act, Public Law No. 96-354 (5 U.S.C. 601
et seq.). Accordingly, a regulatory flexibility analysis is not
required for this proposed rule.
Catalog of Federal Domestic Assistance
The programs affected by this proposed rule are listed in the
Catalog of Federal Domestic Assistance under 10.205, Payments to the
1890 Land-Grant Institutions and Tuskegee University and West Virginia
State College, and No. 10.500, Cooperative Extension Service.
Paperwork Reduction Act
In accordance with the Office of Management and Budget (OMB)
regulations (5 CFR part 1320) which implement the Paperwork Reduction
Act of 1995 (44 U.S.C. chapter 35), the information collection and
recordkeeping requirements that will be imposed in the implementation
of this proposed rule will be submitted to OMB for approval. These
requirements would not become effective prior to OMB approval.
Title: Section 1449 Matching Funds Requirements for Research and
Extension Activities at Eligible Institutions.
Summary: The purpose of this information collection is to implement
the requirements of section 1449 of the National Agricultural Research,
Extension, and Teaching Policy Act of 1977 (NARETPA). This provision
establishes the matching requirements for the 1890 land-grant
institutions,'' including Tuskegee University and West Virginia State
College. This information collection had previously been approved by
OMB as No. 0524-0038 and expires on 04/30/2003. Section 7212 of the
Farm Security and Rural Investment Act of 2002 (FSRIA) amended section
1449 of NARETPA. The existing information collection needs revision to
reflect the amended requirements. In order to be in compliance with the
Government Paperwork Elimination Act (44 U.S.C. 3504 note), CSREES will
develop and implement an electronic option for submitting this
information as soon as a robust eAuthentication solution is available.
CSREES is expectant that this could occur by June 2004.
Need for the Information: This information is needed by CSREES to
determine if the matching requirements under section 1449 of NARETPA
have been met by the 1890 land-grant institutions including Tuskegee
University and West Virginia State College. CSREES intends to require
the eligible institutions to complete Form CSREES-2103, ``Section 1449
Matching Funds Requirement for Research and Extension Activities at
Eligible Institutions,'' up to three times per year for research
activities and three times per year for extension activities to provide
information on the projected funds, the actual funds, and any revisions
to the actual funds.
Respondents: Respondents will be the eighteen 1890 land-grant
institutions, including Tuskegee University and West Virginia State
College, which will provide information to USDA on the amount and
source of non-Federal funds made available by the States to the
eligible institutions for agricultural research, extension, and
qualifying educational activities to meet the matching requirements of
section 1449 of NARETPA.
Estimate of the Burden: The estimated burden on the respondents for
Form CSREES-2103, ``Section 1449 Matching Funds Requirement for
Research and Extension Activities at Eligible Institutions'' is 3.6
hours per response. This burden estimate is based on a small survey of
eligible institutions who have experience completing the current Form
CSREES-2103, ``Section 1449 Matching Funds Requirement for Research and
Extension Activities at Eligible Institutions.''
Estimated Number of Respondents: 18.
Estimated Annual Number of Responses: 108.
Estimated Total Annual Burden on Respondents: 388.8 hours.
Frequency of Responses: Three times a year.
Copies of this information collection can be viewed at http://www.reeusda.gov/part/areera
or can be obtained from Ellen Danus, Policy
and Program Liaison Staff, Office of Extramural Programs, CSREES, USDA,
(202) 401-4325, e-mail: edanus@reeusda.gov. Comments: Comments are invited on: (a) Whether the proposed
collection of information is necessary for the proper performance of
the functions of the Agency, including whether the information will
have practical utility; (b) the accuracy of the Agency's estimate of
the burden of the proposed collection of information including the
validity of the methodology and assumptions used; (c) ways to enhance
the quality, utility, and clarity of the information to be collected;
and (d) ways to minimize the burden of the collection of information on
those who are to respond, including the use of appropriate automated,
electronic, mechanical, or other technological collection techniques or
other forms of information technology. Comments may be sent to: CSREES-
USDA; Office of Extramural Programs; Policy and Program Liaison Staff;
Mail Stop 2299; 1400 Independence Avenue, SW.; Washington, DC 20250-
2299 by July 3, 2003, or to the Desk Officer for Agriculture, Office of
Information and Regulatory Affairs, Office of Management and Budget,
Washington, DC 20502. Reference should be made to the volume, page, and
date of this Federal Register publication.
List of Subjects in 7 CFR Part 3419
Agricultural extension, Agricultural research, Colleges and
universities.
For reasons set forth in the preamble, it is proposed to revise
part 3419 of title 7, subtitle B, chapter XXXIV, of the Code of Federal
Regulations to read as follows:
PART 3419--MATCHING FUNDS REQUIREMENT FOR AGRICULTURAL RESEARCH AND
EXTENSION FORMULA FUNDS AT 1890 LAND-GRANT INSTITUTIONS, INCLUDING
TUSKEGEE UNIVERSITY AND WEST VIRGINIA STATE COLLEGE
Sec.
3419.1 Definitions.
3419.2 Matching Funds.
3419.3 Limited waiver authority.
3419.4 Applications for waivers.
3419.5 Certification of matching funds.
3419.6 Use of matching funds.
3419.7 Redistribution of funds.
Authority: 5 U.S.C. 301, 7 U.S.C. 3222d; sec. 753, Pub. L. 105-
277, 112 Stat. 2681-33.
Sec. 3419.1 Definitions.
As used in this part:
Eligible institution means a college or university eligible to
receive funds under the Act of August 30, 1890 (7 U.S.C. 321 et seq.)
(commonly known as the Second Morrill Act), including Tuskegee
University and West Virginia State College. Formula funds means
agricultural research funds provided to the eligible institutions under
section 1445 of the National Agricultural Research, Extension, and
Teaching Policy Act of 1977 (NARETPA), as amended, and agricultural
extension funds provided to the eligible institutions under section
1444 of NARETPA.
Matching funds means cash contributions from non-Federal sources
made available by the State to the eligible institutions:
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(a) For programs or activities that fall within the purposes of
agricultural research and cooperative extension under sections 1444 and
1445 of NARETPA; or
(b) For qualifying educational activities. Non-Federal sources
means funds made available by the State to the eligible institution
either through direct appropriation or under any authority (other than
authority to charge tuition and fees paid by students) provided by a
State to an eligible institution to raise revenue, such as gift
acceptance authority or user fees.
Qualifying educational activities means programs that address food
and agricultural sciences components of an eligible institution based
on the definitions of ``Food and Agricultural Sciences'' and ``Teaching
and Education'' in section 1404 of NARETPA.
Secretary means the Secretary of Agriculture and any other officer
or employee of the Department of Agriculture to whom the authority
involved has been delegated.
State means the government of any one of the fifty States.
Sec. 3419.2 Matching funds.
The distribution of formula funds shall be subject to the following
matching requirements:
(a) For fiscal year 2003, matching funds shall equal not less than
60 percent of the formula funds to be distributed to the eligible
institution;
(b) For fiscal year 2004, matching funds shall equal not less than
70 percent of the formula funds to be distributed to the eligible
institution;
(c) For fiscal year 2005, matching funds shall equal not less than
80 percent of the formula funds to be distributed to the eligible
institution;
(d) For fiscal year 2006, matching funds shall equal not less than
90 percent of the formula funds to be distributed to the eligible
institution; and
(e) For fiscal year 2007 and each fiscal year thereafter, the
matching funds shall equal not less than 100 percent of the formula
funds to be distributed to the eligible institution.
Sec. 3419.3 Limited waiver authority.
(a) The Secretary may waive the matching funds requirement in Sec.
3419.2 above the 50 percent level for any fiscal year for an eligible
institution of a State if the Secretary determines that the State will
be unlikely to satisfy the matching requirement.
(b) The criteria to waive the matching requirement above the 50
percent level in fiscal year 2003 and thereafter may include:
(1) Natural disaster, flood, fire, tornado, hurricane, or drought;
(2) State and/or institution facing a financial crisis; or
(3) Demonstration of a good faith effort to obtain funds.
(c) Approval or disapproval of the request for a waiver will be
based on the application submitted under Sec. 3419.4.
Sec. 3419.4 Applications for waivers.
The president of the eligible institution must submit any request
for a waiver for matching requirements. A waiver application shall
include the name of the eligible institution, the type of Federal
formula funds (i.e., research and/or extension), appropriate fiscal
year, the basis for the request (e.g., one or more criteria identified
in Sec. 3419.3), supporting justification, and the amount of the
request. An application for a waiver shall be submitted by July 1 of
the fiscal year for which the request is made. If an application for a
waiver is being made for a prior fiscal year, the eligible institution
also must provide an explanation and justification as to why this
application was not made in the appropriate fiscal year. The Secretary
shall approve or disapprove an application for a waiver within 60 days
of receipt.
Sec. 3419.5 Certification of matching funds.
Prior to the distribution of formula funds each fiscal year, each
eligible institution must certify as to the availability of matching
funds. Eligible institutions may revise their certifications of
matching funds through July 1 of the fiscal year for which funds are
appropriated.
Sec. 3419.6 Use of matching funds.
The required matching funds for the formula programs shall be used
by an eligible institution for agricultural research and extension
activities that have been approved in the plan of work required under
sections 1444(d) and 1445(c) of the National Agricultural Research,
Extension, and Teaching Policy Act of 1977 or for qualifying
educational activities.
Sec. 3419.7 Redistribution of funds.
All formula funds not matched and reported under Sec. 3419.5 by
July 1 of each fiscal year will be reapportioned to the other eligible
institutions that have satisfied their current fiscal year requirements
for matching funds for the formula funds. Unmatched research and
extension funds will be reapportioned in accordance with the research
and extension statutory distribution formulas applicable to the 1890
land-grant institutions. Any redistribution of funds shall be subject
to the same matching requirement under Sec. 3419.2.
Done in Washington, DC, this 11th day of April, 2003.
Gary Cunningham,
Associate Administrator, Cooperative State, Research, Education, and
Extension Service.
[FR Doc. 03-10527 Filed 4-28-03; 8:45 am]
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