FR Doc E7-9222
[Federal Register: May 14, 2007 (Volume 72, Number 92)]
[Notices]
[Page 27106-27109]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr14my07-29]
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DEPARTMENT OF EDUCATION
Assistive Technology Act of 1998, As Amended--Assistive
Technology Alternative Financing Program
AGENCY: Office of Special Education and Rehabilitative Services,
Department of Education.
ACTION: Notice of proposed priority.
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SUMMARY: The Assistant Secretary for Special Education and
Rehabilitative Services (OSERS) proposes a priority under section
4(b)(2)(D) of the Assistive Technology Act of 1998, as amended,
administered by the Rehabilitation Services Administration (RSA). The
Assistant Secretary may use the priority for competitions in fiscal
year (FY) 2007 and later years. We take this action to focus Federal
financial assistance on an identified area of national need. We intend
the priority to support activities that increase the availability of,
funding for, access to, and provision of assistive technology (AT)
devices and AT services.
DATES: We must receive your comments on or before June 13, 2007.
ADDRESSES: Address all comments about the proposed priority to Robert
Groenendaal, U.S. Department of Education, 400 Maryland Avenue, SW.,
room 5019, Potomac Center Plaza, Washington, DC 20202-2550. Telephone:
(202) 245-7393 or by e-mail: robert.groenendaal@ed.gov.
You must include the term ``AFP Priority'' in the subject line of
your electronic message.
FOR FURTHER INFORMATION CONTACT: Robert Groenendaal. Telephone: (202)
[[Page 27107]]
245-7393, or via Internet: robert.groenendaal@ed.gov.
If you use a telecommunications device for the deaf (TDD), you may
call the Federal Relay Service (FRS) at 1-800-877-8339.
Individuals with disabilities may obtain this document in an
alternative format (e.g., Braille, large print, audiotape, or computer
diskette) on request to the contact person listed under FOR FURTHER
INFORMATION CONTACT.
SUPPLEMENTARY INFORMATION:
Invitation to Comment
We invite you to submit comments regarding the proposed priority.
We invite you to assist us in complying with the specific
requirements of Executive Order 12866 and its overall requirement of
reducing regulatory burden that might result from the proposed
priority. Please let us know of any further opportunities we should
take to reduce potential costs or increase potential benefits while
preserving the effective and efficient administration of the program.
During and after the comment period, you may inspect all public
comments about the proposed priority in room 5019, Potomac Center
Plaza, 550 12th Street, SW., Washington, DC, between the hours of 8:30
a.m. and 4 p.m., Eastern Time, Monday through Friday of each week
except Federal holidays.
Assistance to Individuals With Disabilities in Reviewing the Rulemaking
Record
On request, we will supply an appropriate aid, such as a reader or
print magnifier, to an individual with a disability who needs
assistance to review the comments or other documents in the public
rulemaking record for the proposed priority. If you want to schedule an
appointment for this type of aid, please contact the person listed
under FOR FURTHER INFORMATION CONTACT.
Background
Most individuals with disabilities do not have the private
financial resources to purchase the AT they need. Currently, programs
such as Medicaid, Medicare, and vocational rehabilitation cannot meet
the growing demand for AT. Through services such as financial loans,
alternative financing programs (AFPs) offer individuals with
disabilities affordable options that can significantly enhance their
access to AT in a way that underscores independence and inclusion.
The FY 2007 full-year Continuing Resolution provides funding for
the Department to support the establishment, expansion, and
administration of AFPs under section 4(b)(2)(D) of the Assistive
Technology Act of 1998, as amended (AT Act). States and outlying areas
operate AFPs in accordance with the requirements of title III of the
Assistive Technology Act of 1998 as in effect on the day before the
date of enactment of the 2004 amendments (referred to throughout this
document as the ``old AT Act''). The purpose of title III of the old AT
Act is to maximize independence and participation in society by
individuals with disabilities through AFPs. These programs offer
alternatives to the traditional payment options of public assistance
and out-of-pocket financing so that individuals with disabilities and
their family members, guardians, advocates, and authorized
representatives can purchase AT devices and services. Grantees
operating AFPs must match their Federal grant amount; as provided for
by the FY 2007 Continuing Resolution, which incorporates the
requirements in the FY 2006 appropriations act relating to this
program, the Federal share may not be more than 75 percent of the cost
of AFPs featuring one or more alternative financing mechanisms for the
purchase of AT devices and AT services.
In order to maintain consistency among AFPs funded under this
program, we are proposing substantially the same priority that was
published for this program in the Federal Register on June 30, 2005 (70
FR 37794).
We will announce the final priority in a notice in the Federal
Register. We will determine the final priority after considering
responses to this notice and other information available to the
Department. This notice does not preclude us from proposing or using
other priorities, subject to meeting applicable rulemaking
requirements.
Note: This notice does not solicit applications. In any year in
which we choose to use the priority, we invite applications through
a notice in the Federal Register. When inviting applications we
designate the 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 competitive 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 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
invitational priority a competitive or absolute preference over
other applications (34 CFR 75.105(c)(1)).
Priority
The Assistant Secretary proposes this priority to support AFPs that
provide individuals with disabilities the funding for and provision of
AT devices and services.
In order to meet this priority, the State must establish or expand
one or more of the following types of AFPs (section 301(b) of the old
AT Act):
(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 services.
(6) Another mechanism that meets the requirements of title III of
the old AT Act and is approved by the Secretary.
AFPs are designed to allow individuals with disabilities and their
family members, guardians, advocates, and authorized representatives to
purchase AT devices or services. If 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 devices or services,
the purchase must be on behalf of an individual with a disability,
i.e., the AT device or service that is purchased must be solely for the
benefit of that individual.
To be considered for funding, an applicant must identify the type
or types of AFP to be supported by the grant and submit all of the
following assurances in their entirety:
(1) Nature of the Match: An assurance that the State will provide
the non-Federal share (not less than 25 percent) of the cost of the AFP
in cash, from State, local, or private sources (sections 301(d) and
303(b)(1) of the old AT Act, as provided for by the 2007 Continuing
Resolution, which incorporates requirements in the FY 2006
appropriations act relating to this program). An applicant must
identify the amount of Federal funds the State is requesting, the
amount of cash that the State will provide as a match, and the source
of the cash.
(2) Permanent Separate Account: An assurance from the State that--
[[Page 27108]]
(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 that person (section 303(b)(5) of the old AT Act).
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.
(3) Permanence of the Program: An assurance that the AFP will
continue on a permanent basis (section 303(b)(2) of the old AT Act).
A State's obligation to implement the AFP consistent with all of
the requirements, including reporting requirements, continues 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 RSA (e.g., 75 percent if the original
State to Federal match was 1 to 3) except for funds being used for
grant purposes, such as loan guarantees for outstanding loans. However,
before closing out its grant, the State also must 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.
(4) Consumer Choice and Control: An assurance that, and information
describing the manner in which, the AFP will expand and emphasize
consumer choice and control (section 303(b)(3) of the old AT Act).
(5) 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 (section
303(b)(4) of the old AT Act).
(6) Contract With a Community-Based Organization: An assurance that
the State will enter into a contract with a community-based
organization (CBO) (including a group of CBOs) that has individuals
with disabilities involved in organizational decision-making at all
organizational levels, to administer the AFP. The contract must--
(a) 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 of
the old AT Act;
(b) Include any provision the Secretary requires concerning
oversight and evaluation necessary to protect Federal financial
interests; and
(c) Require the CBO to enter into a contract, to expand
opportunities under title III of the old AT Act and facilitate
administration of the AFP, with commercial lending institutions or
organizations or State financing agencies (section 304 of the old AT
Act).
During the first 12-month budget period, a grantee will 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.
(7) Use and Control of Funds: An assurance that--
(a) Funds comprised of the principal and interest from the account
described in paragraph (2) Permanent Separate Account of this priority
will be available to support the AFP; and
(b) Any interest or investment income that accrues on or derives
from those funds after the funds have been placed under the control of
the organization administering the AFP, but before the funds are
distributed for purposes of supporting the program, will be the
property of the organization administering the program (section
303(b)(6) of the old AT Act).
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.
(8) 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 (section 303(b)(7) of the old AT Act).
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.
(9) Administrative Policies and Procedures: An assurance that the
State and any CBO that enters into a contract with the State under
title III of the old AT Act will submit to the Secretary the following
policies and procedures for administration of the AFP:
(a) 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.
(b) A policy and procedure to ensure that access to the AFP must be
given to consumers regardless of type of disability, age, income level,
location of residence in the State, or type of AT device or service for
which financing is requested through the program.
(c) A procedure to ensure consumer-controlled oversight of the
program (section 305 of the old AT Act).
Grantees must submit the administrative policies and procedures
required in this assurance within 12 months of the start of the grant.
(10) Data Collection: An assurance that the State will collect and
report data requested by the Secretary in the format, with the
frequency, and using the method established by the Secretary until
there are no longer any funds available to operate the AFP and all
outstanding loans have been repaid.
(11) Collaboration With the Statewide AT Program: An assurance that
the AFP will enter into a written agreement with that State's statewide
AT program supported under section 4 of the AT Act to coordinate
activities appropriately.
Executive Order 12866
This notice of proposed priority has been reviewed in accordance
with Executive Order 12866. Under the terms of the order, we have
assessed the potential costs and benefits of this regulatory action.
The potential costs associated with the notice of proposed priority
are those resulting from statutory requirements and those we have
determined as necessary for administering this program effectively and
efficiently.
In assessing the potential costs and benefits--both quantitative
and qualitative--of this notice of proposed priority we have determined
that the benefits of the proposed priority justify the costs.
We have also determined that this regulatory action does not unduly
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interfere with State, local, and tribal governments in the exercise of
their governmental functions.
Intergovernmental Review
This program is subject to Executive Order 12372 and the
regulations in 34 CFR part 79. One of the objectives of the Executive
order is to foster an intergovernmental partnership and a strengthened
federalism. The Executive order relies on processes developed by State
and local governments for coordination and review of proposed Federal
financial assistance.
This document provides early notification of our specific plans and
actions for this program.
Applicability of Education Department General Administrative
Regulations (EDGAR) to AFP
In general, EDGAR would apply to this grant except to the extent it
is inconsistent with the purpose of and intent of section 4(b)(2)(D) of
the AT Act. Specifically, grantees would be exempt from section
80.21(i) regarding interest earned on advances and the addition method
in section 80.25(g)(1). Also, sections 75.560-75.564 would not apply to
the extent that these sections of EDGAR are inconsistent with the AFP
requirement that indirect costs cannot exceed 10 percent.
Electronic Access to This Document
You may view this document, as well as all other Department of
Education documents published in the Federal Register, in text or Adobe
Portable Document Format (PDF) on the Internet at the following site:
http://www.ed.gov/news/fedregister/.
To use PDF you must have Adobe Acrobat Reader, which is available
free at this site. If you have questions about using PDF, call the U.S.
Government Printing Office (GPO), toll free, at 1-888-293-6498; or in
the Washington, DC, area at (202) 512-1530.
Note: The official version of this document is the document
published in the Federal Register. Free Internet access to the
official edition of the Federal Register and the Code of Federal
Regulations is available on GPO Access at:
http://www.gpoaccess.gov/nara/index.html.
(Catalog of Federal Domestic Assistance Number 84.224C Assistive
Technology Alternative Financing Programs)
Program Authority: 29 U.S.C. 3001 et seq.
Dated: May 9, 2007.
Andrew J. Pepin,
Executive Administrator, Office of Special Education and Rehabilitative
Services.
[FR Doc. E7-9222 Filed 5-11-07; 8:45 am]
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