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[Federal Register: December 15, 1999 (Volume 64, Number 240)]
[Rules and Regulations]
[Page 70145-70155]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr15de99-12]
[[Page 70145]]
_______________________________________________________________________
Part III
Department of Education
_______________________________________________________________________
34 CFR Parts 606 and 607
Strengthening Institutions Program and Developing Hispanic-Serving
Institutions Program; Final Rule
[[Page 70146]]
DEPARTMENT OF EDUCATION
34 CFR Parts 606 and 607
Strengthening Institutions Program and Developing Hispanic-
Serving Institutions Program
AGENCY: Department of Education.
ACTION: Final regulations.
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SUMMARY: We amend the regulations governing the Strengthening
Institutions and Developing Hispanic-Serving Institutions (HSI)
Programs to conform them to statutory changes made to those programs by
the Higher Education Amendments of 1998 (1998 Amendments). We have also
moved the regulations for the HSI Program to a new part. These
regulations also make technical corrections and changes.
EFFECTIVE DATE: These regulations are effective January 14, 2000.
FOR FURTHER INFORMATION CONTACT: Darlene Collins, U.S. Department of
Education, 1990 K Street, NW., Washington, DC 20006-8512. Telephone:
(202) 502-7576. If you use a telecommunications device for the deaf
(TDD), you may call the Federal Information Relay Service (FIRS) at 1-
800-877-8339.
Individuals with disabilities may obtain this document in an
alternate format (e.g., Braille, large print, audiotape, or computer
diskette) on request to the contact person.
SUPPLEMENTARY INFORMATION: The Strengthening Institutions Program is
authorized under title III, part A of the Higher Education Act of 1965
as amended (HEA). The HSI Program is now authorized under title V of
the HEA. However, prior to the 1998 Amendments, it was also authorized
under title III, part A of the HEA. Accordingly, because the HSI
Program was moved from title III to title V of the HEA, we moved the
regulations governing the program from part 607 to a new part, part
606. However, new part 606 either contains regulatory provisions
already included in part 607 or statutory changes made to the HSI
Program by the 1998 Amendments.
The 1998 Amendments made several other changes to the HEA with
regard to those two programs that require conforming changes to the
regulations for the two programs. These statutory amendments
incorporated in the regulations in part 606 include:
* Expanding the specific allowable activities, and
* Providing that an institution that receives a five-year
individual grant under the HSI Program is not eligible to receive an
additional development grant until two years after the date on which
the five-year grant terminates.
The statutory amendments incorporated in the regulations in part
607 include:
* Expanding the specific allowable activities, and
* Extending from one year to two years the period that a
previous grantee must sit out before it can receive another individual
development grant.
The 1998 Amendments also created several new programs under the
Strengthening Institutions Program umbrella. These programs provide
grants to Indian Tribal Colleges and Universities, Alaska Native-
serving institutions, and Native Hawaiian-serving institutions. Grants
made to these institutions under these programs are subject to the
requirements in part 607. However, to implement these programs, part
607 is further amended to incorporate the following statutory
provisions that:
* Authorize grants to Tribal Colleges and Universities to
plan, develop, and carry out approved program activities.
* Define the terms ``Indian'', ``Indian Tribe'' and ``Tribal
College or University''.
* Allow the Secretary to waive the needy student eligibility
requirement if the applicant is a Tribal College or University.
* List activities that Tribal Colleges and Universities may
carry out under a grant.
* Provide that no Tribal College or University that receives
funds under the Indian Tribal Colleges and Universities Program may
concurrently receive other grant funds under the Strengthening
Institutions Program, Strengthening Historically Black Colleges and
Universities Program, or Strengthening Historically Black Graduate
Institutions Program.
* Require a five-year plan for improving the assistance
provided by the Tribal College or University to Indian students,
increasing the rates at which Indian secondary school students enroll
in higher education, and increasing overall postsecondary retention
rates for Indian students.
* Authorize grants to assist Alaska Native-serving and
Native Hawaiian-serving institutions of higher education to plan,
develop and carry out approved program activities.
* Define the terms ``Alaska Native'', ``Alaska Native-
serving Institution'' and ``Native Hawaiian-serving institution''.
* List activities that Alaska Native-serving institutions of
higher education and Native Hawaiian-serving institutions of higher
education may carry out under a grant.
* Provide that no Alaska Native-serving institution or
Native Hawaiian-serving institution that receives funds under the
programs specifically serving those institutions may concurrently
receive other grant funds under the Strengthening Institutions Program,
Strengthening Historically Black Colleges and Universities Program, or
Strengthening Historically Black Graduate Institutions Program.
* Require a five-year plan for improving the assistance
provided by the Alaska Native-serving institution or the Native
Hawaiian-serving institution to Alaska Native students or Native
Hawaiian students.
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 government for coordination and review of proposed Federal
financial assistance.
In accordance with the order, we intend this document to provide
early notification of the Department's specific plans and actions for
this program.
Assessment of Education Impact
Based on our review, we have determined that these final
regulations do not require transmission of information that any other
agency or authority of the United States gathers or makes available.
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 either of the
following sites:
http://ocfo.ed.gov/fedreg.htm
http://www.ed.gov/news.html
To use the PDF you must have the Adobe Acrobat Reader Program with
Search, which is available free at either of the previous sites. If you
have questions about using the PDF, call the U.S. Government Printing
Office (GPO), toll free, at 1-888-293-6498; or in the Washington, D.C.
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.access.gpo.gov/nara/index.html
[[Page 70147]]
Waiver of Proposed Rulemaking
It is the practice of the Secretary to offer interested parties the
opportunity to comment on proposed regulations in accordance with the
Administrative Procedure Act (5 U.S.C. 553). However, since these
changes merely incorporate statutory amendments into the regulations
and do not implement substantive policy, public comment could have no
effect. Therefore, the Secretary has determined pursuant to 5 U.S.C.
553(b)(B) that public comment on the regulations is unnecessary and
contrary to the public interest.
List of Subjects in 34 CFR Parts 606 and 607
Colleges and universities, Grant programs--education, Reporting and
recordkeeping requirements.
Dated: December 8, 1999.
A. Lee Fritschler,
Assistant Secretary, Office of Postsecondary Education.
For the reasons discussed in the preamble, the Secretary amends
title 34 of the Code of Federal Regulations by adding a new part 606
and amending part 607 as follows:
1. A new part 606 is added to read as follows:
PART 606--DEVELOPING HISPANIC-SERVING INSTITUTIONS PROGRAM
Subpart A--General
Sec.
606.1 What is the Developing Hispanic-Serving Institutions Program?
606.2 What institutions are eligible to receive a grant under the
Developing Hispanic-Serving Institutions Program?
606.3 What is an enrollment of needy students?
606.4 What are low educational and general expenditures?
606.5 How does an institution apply to be designated an eligible
institution?
606.6 What regulations apply?
606.7 What definitions apply?
606.8 What is a comprehensive development plan and what must it
contain?
606.9 What are the type, duration, and limitations in the awarding
of grants under this part?
606.10 What activities may and may not be carried out under a
grant?
Subpart B--How Does an Institution Apply for a Grant?
606.11 What must be included in individual development grant
applications?
606.12 What must be included in cooperative arrangement grant
applications?
606.13 How many applications for a development grant may an
institution submit?
Subpart C--How Does the Secretary Make an Award?
606.20 How does the Secretary choose applications for funding?
606.21 What are the selection criteria for planning grants?
606.22 What are the selection criteria for development grants?
606.23 What special funding consideration does the Secretary
provide?
606.24 How does the Secretary use an applicant's performance under
a previous development grant when awarding a development grant?
606.25 What priority does the Secretary use in awarding cooperative
arrangement grants?
Subpart D--What Conditions Must a Grantee Meet?
606.30 What are allowable costs and what are the limitations on
allowable costs?
606.31 How does a grantee maintain its eligibility?
Authority: 20 U.S.C. 1101 et seq., unless otherwise noted.
Subpart A--General
Sec. 606.1 What is the Developing Hispanic-Serving Institutions
Program?
The purpose of the Developing Hispanic-Serving Institutions Program
is to provide grants to eligible institutions of higher education to--
(a) Expand educational opportunities for, and improve the academic
attainment of, Hispanic students; and
(b) Expand and enhance the academic offerings, program quality, and
institutional stability of colleges and universities that are educating
the majority of Hispanic college students and helping large numbers of
Hispanic students and other low-income individuals complete
postsecondary degrees.
(Authority: 20 U.S.C. 1101)
Sec. 606.2 What institutions are eligible to receive a grant under the
Developing Hispanic-Serving Institutions Program?
(a) An institution of higher education is eligible to receive a
grant under this part if--
(1) At the time of application, it has an enrollment of
undergraduate full-time equivalent students that is at least 25 percent
Hispanic students;
(2) It provides assurances that not less than 50 percent of its
Hispanic students are low-income individuals;
(3) It has an enrollment of needy students as described in
Sec. 606.3(a), unless the Secretary waives this requirement under
Sec. 606.3(b);
(4) It has low average educational and general expenditures per
full-time equivalent undergraduate student as described in
Sec. 606.4(a), unless the Secretary waives this requirement under
Sec. 606.4(c);
(5) It is legally authorized by the State in which it is located to
be a junior college or to provide an educational program for which it
awards a bachelor's degree; and
(6) It is accredited or preaccredited by a nationally recognized
accrediting agency or association that the Secretary has determined to
be a reliable authority as to the quality of education or training
offered.
(b) A branch campus of a Hispanic-Serving institution is eligible
to receive a grant under this part if--
(1) The institution as a whole meets the requirements of paragraph
(a) of this section; and
(2) The branch satisfies the requirements of paragraphs (a)(1),
(a)(2), (a)(3), and (a)(4) of this section.
(c)(1) An institution that receives a grant under the Strengthening
Institutions Program (34 CFR part 607) or the Strengthening
Historically Black Colleges and Universities Program (34 CFR part 608)
for a particular fiscal year is not eligible to receive a grant under
this part for that same fiscal year, and may not relinquish its grant
under those programs to secure a grant under this part.
(2) A Hispanic-Serving institution under this part may not
concurrently receive grant funds under the Strengthening Institutions
Program, Strengthening Historically Black Colleges and Universities
Program, or Strengthening Historically Black Graduate Institutions
Program.
(Authority: 20 U.S.C. 1101a and 1101d)
Sec. 606.3 What is an enrollment of needy students?
(a) Except as provided in paragraph (b) of this section, for the
purpose of Sec. 606.2(a)(3), an applicant institution has an enrollment
of needy students if in the base year--
(1) At least 50 percent of its degree students received student
financial assistance under one or more of the following programs:
Federal Pell Grant, Federal Supplemental Educational Opportunity Grant,
Federal Work-Study, and Federal Perkins Loan; or
(2) The percentage of its undergraduate degree students who were
enrolled on at least a half-time basis and received Federal Pell Grants
exceeded the median percentage of undergraduate degree students who
were enrolled on at least a half-time basis and received Federal Pell
Grants at comparable institutions that offer similar instruction.
(b) The Secretary may waive the requirement contained in paragraph
(a) of this section if the institution demonstrates that--
[[Page 70148]]
(1) The State provides more than 30 percent of the institution's
budget and the institution charges not more than $99.00 for tuition and
fees for an academic year;
(2) At least 30 percent of the students served by the institution
in the base year were students from low-income families;
(3) The institution substantially increases the higher education
opportunities for low-income students who are also educationally
disadvantaged, underrepresented in postsecondary education, or minority
students;
(4) The institution substantially increases the higher education
opportunities for individuals who reside in an area that is not
included in a ``metropolitan statistical area'' as defined by the
Office of Management and Budget and who are unserved by other
postsecondary institutions; or
(5) The institution will, if granted the waiver, substantially
increase the higher education opportunities for Hispanic Americans.
(c) For the purpose of paragraph (b) of this section, the Secretary
considers ``low-income'' to be an amount which does not exceed 150
percent of the amount equal to the poverty level as established by the
United States Bureau of the Census.
(d) Each year, the Secretary notifies prospective applicants of the
low-income figures through a notice published in the Federal Register.
(Authority: 20 U.S.C. 1101a and 1103a)
Sec. 606.4 What are low educational and general expenditures?
(a)(1) Except as provided in paragraph (b) of this section, for the
purpose of Sec. 606.2(a)(2), an applicant institution's average
educational and general expenditures per full-time equivalent
undergraduate student in the base year must be less than the average
educational and general expenditures per full-time equivalent
undergraduate student in that year of comparable institutions that
offer similar instruction.
(2) For the purpose of paragraph (a)(1) of this section, the
Secretary determines the average educational and general expenditure
per full-time equivalent undergraduate student for institutions with
graduate students that do not differentiate between graduate and
undergraduate educational and general expenditures by discounting the
graduate enrollment using a factor of 2.5 times the number of graduate
students.
(b) Each year, the Secretary notifies prospective applicants
through a notice in the Federal Register of the average educational and
general expenditures per full-time equivalent undergraduate student at
comparable institutions that offer similar instruction.
(c) The Secretary may waive the requirement contained in paragraph
(a) of this section, if the Secretary determines, based upon persuasive
evidence provided by the institution, that--
(1) The institution's failure to satisfy the criteria in paragraph
(a) of this section was due to factors which, if used in determining
compliance with those criteria, distorted that determination; and
(2) The institution's designation as an eligible institution under
this part is otherwise consistent with the purposes of this part.
(d) For the purpose of paragraph (c)(1) of this section, the
Secretary considers that the following factors may distort an
institution's educational and general expenditures per full-time
equivalent undergraduate student--
(1) Low student enrollment;
(2) Location of the institution in an unusually high cost-of-living
area;
(3) High energy costs;
(4) An increase in State funding that was part of a desegregation
plan for higher education; or
(5) Operation of high cost professional schools such as medical or
dental schools.
(Authority: 20 U.S.C. 1101a and 1103a)
Sec. 606.5 How does an institution apply to be designated an eligible
institution?
(a) An institution applies to the Secretary to be designated an
eligible institution under this part by first submitting an application
to the Secretary in the form, manner, and time established by the
Secretary. The application must contain--
(1) The information necessary for the Secretary to determine
whether the institution satisfies the requirements of Secs. 606.2,
606.3(a), and 606.4(a);
(2) Any waiver request under Secs. 606.3(b) and 606.4(c); and
(3) Information or explanations justifying any requested waiver.
(b) An institution that wishes to receive a grant under this part
must submit, as part of its application for that grant, an assurance
that when it submits its application--
(1) Its enrollment of undergraduate full-time equivalent students
is at least 25 percent Hispanic students; and
(2) Not less than 50 percent of its Hispanic students are low-
income individuals.
(Authority: 20 U.S.C. 1101a and 1103)
Sec. 606.6 What regulations apply?
The following regulations apply to the Developing Hispanic-Serving
Institutions 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 34 CFR
75.128(a)(2) and 75.129(a) in the case of applications for cooperative
arrangements.
(3) 34 CFR part 77 (Definitions that Apply to Department
Regulations).
(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 606.
(Authority: 20 U.S.C. 1101 et seq.)
Sec. 606.7 What definitions apply?
(a) Definitions in EDGAR. The terms used in this part are defined
in 34 CFR 77.1:
EDGAR
Fiscal year
Grant
Grantee
Grant period
Nonprofit
Private
Project period
Public
Secretary
State
(b) The following definitions also apply to this part:
Accredited means the status of public recognition which a
nationally recognized accrediting agency or association grants to an
institution which meets certain established qualifications and
educational standards.
Activity means an action that is incorporated into an
implementation plan designed to meet one or more objectives. An
activity is a part of a project and has its own budget that is approved
to carry out the objectives of that subpart.
Base year means the second fiscal year preceding the fiscal year
for which an institution seeks a grant under this part.
Branch campus means a unit of a college or university that is
[[Page 70149]]
geographically apart from the main campus of the college or university
and independent of that main campus. The Secretary considers a unit of
a college or university to be independent of the main campus if the
unit--
(1) Is permanent in nature;
(2) Offers courses for credit and programs leading to an associate
or bachelor's degree; and
(3) Is autonomous to the extent that it has--
(i) Its own faculty and administrative or supervisory organization;
and
(ii) Its own budgetary and hiring authority.
Comparable institutions that offer similar instruction means
institutions that are being compared with an applicant institution and
that fall within one of the following four categories--
(1) Public junior or community colleges;
(2) Private nonprofit junior or community colleges;
(3) Public institutions that offer an educational program for which
they offer a bachelor's degree; or
(4) Private nonprofit institutions that offer an educational
program for which they offer a bachelor's degree.
Cooperative arrangement means an arrangement to carry out allowable
grant activities between an institution eligible to receive a grant
under this part and another eligible or ineligible institution of
higher education, under which the resources of the cooperating
institutions are combined and shared to better achieve the purposes of
this part and avoid costly duplication of effort.
Degree student means a student who enrolls at an institution for
the purpose of obtaining the degree, certificate, or other recognized
educational credential offered by that institution.
Developmental program and services means new or improved programs
and services, beyond those regularly budgeted, specifically designed to
improve the self sufficiency of the school.
Educational and general expenditures means the total amount
expended by an institution of higher education for instruction,
research, public service, academic support (including library
expenditures), student services, institutional support, scholarships
and fellowships, operation and maintenance expenditures for the
physical plant, and any mandatory transfers which the institution is
required to pay by law.
Educationally disadvantaged means a college student who requires
special services and assistance to enable them to succeed in higher
education. The phrase includes, but is not limited to, students who
come from--
(1) Economically disadvantaged families;
(2) Limited English proficiency families;
(3) Migrant worker families; or
(4) Families in which one or both of their parents have dropped out
of secondary school.
Federal Pell Grant Program means the grant program authorized by
title IV-A-1 of the HEA.
Federal Perkins Loan Program, formerly called the National Direct
Student Loan Program, means the loan program authorized by title IV-E
of the HEA.
Federal Supplemental Education Opportunity Grant Program means the
grant program authorized by title IV-A-3 of the HEA.
Federal Work-Study Program means the part-time employment program
authorized under title IV-C of the HEA.
Full-time equivalent students means the sum of the number of
students enrolled full-time at an institution, plus the full-time
equivalent of the number of students enrolled part time (determined on
the basis of the quotient of the sum of the credit hours of all part-
time students divided by 12) at such institution.
HEA means the Higher Education Act of 1965, as amended.
Hispanic student means a person of Mexican, Puerto Rican, Cuban,
Central or South American, or other Spanish culture or origin,
regardless of race.
Institution of higher education means an educational institution
defined in section 101 of the HEA.
Junior or community college means an institution of higher
education--
(1) That admits as regular students persons who are beyond the age
of compulsory school attendance in the State in which the institution
is located and who have the ability to benefit from the training
offered by the institution;
(2) That does not provide an educational program for which it
awards a bachelor's degree (or an equivalent degree); and
(3) That--
(i) Provides an educational program of not less than 2 years that
is acceptable for full credit toward such a degree; or
(ii) Offers a 2-year program in engineering, mathematics, or the
physical or biological sciences, designed to prepare a student to work
as a technician or at the semiprofessional level in engineering,
scientific, or other technological fields requiring the understanding
and application of basic engineering, scientific, or mathematical
principles of knowledge.
Low-income individual means an individual from a family whose
taxable income for the preceding year did not exceed 150 percent of an
amount equal to the poverty level determined by using criteria of
poverty established by the Bureau of the Census.
Minority student means a student who is an Alaska Native, American
Indian, Asian-American, Black (African-American), Hispanic American,
Native Hawaiian, or Pacific Islander.
Nationally recognized accrediting agency or association means an
accrediting agency or association that the Secretary has recognized to
accredit or preaccredit a particular category of institution in
accordance with the provisions contained in 34 CFR part 603. The
Secretary periodically publishes a list of those nationally recognized
accrediting agencies and associations in the Federal Register.
Operational programs and services means the regular, ongoing
budgeted programs and services at an institution.
Preaccredited means a status that a nationally recognized
accrediting agency or association, recognized by the Secretary to grant
that status, has accorded an unaccredited institution that is
progressing toward accreditation within a reasonable period of time.
Project means all the funded activities under a grant.
Self-sufficiency means the point at which an institution is able to
survive without continued funding under the Developing Hispanic-Serving
Institutions Program.
Underrepresented means proportionate representation as measured by
degree recipients, that is less than the proportionate representation
in the general population--
(1) As indicated by--
(i) The most current edition of the Department's Digest of
Educational Statistics;
(ii) The National Research Council's Doctorate Recipients from
United States Universities; or
(iii) Other standard statistical references, as announced annually
in the Federal Register notice inviting applications for new awards
under this program; or
(2) As documented by national survey data submitted to and accepted
by the Secretary on a case-by-case basis.
(Authority: 20 U.S.C. 1101 et seq.; OMB Directive No. 15)
Sec. 606.8 What is a comprehensive development plan and what must it
contain?
(a) A comprehensive development plan is an institution's strategy
for achieving growth and self-sufficiency by strengthening its--
[[Page 70150]]
(1) Academic programs;
(2) Institutional management; and
(3) Fiscal stability.
(b) The comprehensive development plan must include the following:
(1) An analysis of the strengths, weaknesses, and significant
problems of the institution's academic programs, institutional
management, and fiscal stability.
(2) A delineation of the institution's goals for its academic
programs, institutional management, and fiscal stability, based on the
outcomes of the analysis described in paragraph (b)(1) of this section.
(3) Measurable objectives related to reaching each goal and
timeframes for achieving the objectives.
(4) Methods and resources that will be used to institutionalize
practices and improvements developed under the proposed project.
(5) Its five year plan to improve its services to Hispanic and
other low-income students.
(Authority: 20 U.S.C. 1101 et seq.)
Sec. 606.9 What are the type, duration, and limitations in the
awarding of grants under this part?
(a)(1) Under this part, the Secretary may award planning grants and
two types of development grants, individual development grants and
cooperative arrangement development grants.
(2) Planning grants may be awarded for a period not to exceed one
year.
(3) Either type of development grant may be awarded for a period of
five years.
(b)(1) An institution that received an individual development grant
of five years may not subsequently receive another individual
development grant for a period of two years from the date on which the
five-year grant terminates.
(2) A cooperative arrangement grant is not considered to be an
individual development grant under paragraph (b)(1) of this section.
(Authority: 20 U.S.C. 1101c and 1103c)
Sec. 606.10 What activities may and may not be carried out under a
grant?
(a) Planning grants. Under a planning grant, a grantee shall
formulate--
(1) A comprehensive development plan described in Sec. 606.8; and
(2) An application for a development grant.
(b) Development grants--allowable activities. Under a development
grant, except as provided in paragraph (c) of this section, a grantee
shall carry out activities that implement its comprehensive development
plan and hold promise for strengthening the institution. Activities
that may be carried out include, but are not limited to--
(1) Purchase, rental, or lease of scientific or laboratory
equipment for educational purposes, including instructional and
research purposes.
(2) Construction, maintenance, renovation, and improvement in
classrooms, libraries, laboratories, and other instructional
facilities.
(3) Support of faculty exchanges, faculty development, curriculum
development, academic instruction, and faculty fellowships to assist in
attaining advanced degrees in the fellow's field of instruction.
(4) Purchase of library books, periodicals, and other educational
materials, including telecommunications program material.
(5) Tutoring, counseling, and student service programs designed to
improve academic success.
(6) Funds management, administrative management, and acquisition of
equipment for use in strengthening funds management.
(7) Joint use of facilities, such as laboratories and libraries.
(8) Establishing or improving a development office to strengthen or
improve contributions from alumni and the private sector.
(9) Establishing or improving an endowment fund, provided the
grantee uses no more than 20 percent of its grant funds for this
purpose and at least matches those grant funds with non-Federal funds.
(10) Creating or improving facilities for Internet or other
distance learning academic instruction capabilities, including purchase
or rental of telecommunications technology equipment or services.
(11) Establishing or enhancing a program of teacher education
designed to qualify students to teach in public elementary or secondary
schools.
(12) Establishing community outreach programs that will encourage
elementary school and secondary school students to develop the academic
skills and the interest to pursue postsecondary education.
(13) Expanding the number of Hispanic and other underrepresented
graduate and professional students that can be served by the
institution by expanding courses and institutional resources.
(14) Other activities that contribute to carrying out the purposes
of this program.
(c) Development grants--unallowable activities. A grantee may not
carry out the following activities or pay the following costs under a
development grant:
(1) Activities that are not included in the grantee's approved
application.
(2) Activities that are inconsistent with any State plan for higher
education that is applicable to the institution, including, but not
limited to, a State plan for desegregation of higher education.
(3) Activities or services that relate to sectarian instruction or
religious worship.
(4) Activities provided by a school or department of divinity. For
the purpose of this provision, a ``school or department of divinity''
means an institution, or a department of an institution, whose program
is specifically for the education of students to prepare them to become
ministers of religion or to enter into some other religious vocation or
to prepare them to teach theological subjects.
(5) Developing or improving non-degree or non-credit courses other
than basic skills development courses.
(6) Developing or improving community-based or community services
programs, unless the program provides academic-related experiences or
academic credit toward a degree for degree students, or, unless it is a
program or services to encourage elementary and secondary school
students to develop the academic skills and the interest to pursue
postsecondary education.
(7) Purchase of standard office equipment, such as furniture, file
cabinets, bookcases, typewriters, or word processors.
(8) Payment of any portion of the salary of a president, vice
president, or equivalent officer who has college-wide administrative
authority and responsibility at an institution to fill a position under
the grant such as project coordinator or activity director.
(9) Costs of organized fund-raising, including financial campaigns,
endowment drives, solicitation of gifts and bequests, and similar
expenses incurred solely to raise capital or obtain contributions.
(10) Costs of student recruitment such as advertisements,
literature, and college fairs.
(11) Services to high school students, unless they are services to
encourage such students to develop the skills and the interest to
pursue postsecondary education.
(12) Instruction in the institution's standard courses as indicated
in the institution's catalog.
(13) Costs for health and fitness programs, transportation, and day
care services.
[[Page 70151]]
(14) Student activities such as entertainment, cultural, or social
enrichment programs, publications, social clubs, or associations.
(15) Activities that are operational in nature rather than
developmental in nature.
(Authority: 20 U.S.C. 1101 et seq.)
Subpart B--How Does an Institution Apply for a Grant?
Sec. 606.11 What must be included in individual development grant
applications?
In addition to the information needed by the Secretary to determine
whether the institution should be awarded a grant under the funding
criteria contained in subpart C, an application for a development grant
must include--
(a) The institution's comprehensive development plan;
(b) A description of the relationship of each activity for which
grant funds are requested to the relevant goals and objectives of its
plan;
(c) A description of any activities that were funded under previous
development grants awarded under the Developing Hispanic-Serving
Institutions Program that expired within five years of when the
development grant will begin and the institution's justification for
not completing the activities under the previous grant, if applicable;
(d) If the applicant is applying to carry out more than one
activity--
(1) A description of those activities that would be a sound
investment of Federal funds if funded separately;
(2) A description of those activities that would be a sound
investment of Federal funds only if funded with the other activities;
and
(3) A ranking of the activities in preferred funding order.
(Approved by the Office of Management and Budget under control
number 1840-0114)
(Authority: 20 U.S.C. 1101 et seq.)
Sec. 606.12 What must be included in cooperative arrangement grant
applications?
(a)(1) Institutions applying for a cooperative arrangement grant
shall submit only one application for that grant regardless of the
number of institutions participating in the cooperative arrangement.
(2) The application must include the names of each participating
institution, the role of each institution, and the rationale for each
eligible participating institution's decision to request grant funds as
part of a cooperative arrangement rather than as an individual grantee.
(b) If the application is for a development grant, the application
must contain--
(1) Each participating institution's comprehensive development
plan;
(2) The information required under Sec. 606.11; and
(3) An explanation from each eligible participating institution of
why participation in a cooperative arrangement grant rather than
performance under an individual grant will better enable it to meet the
goals and objectives of its comprehensive development plan at a lower
cost.
(4) The name of the applicant for the group that is legally
responsible for--
(i) The use of all grant funds; and
(ii) Ensuring that the project is carried out by the group in
accordance with Federal requirements. (Approved by the Office of
Management and Budget under control number 1840-0114)
(Authority: 20 U.S.C. 1103 and 1103e)
Sec. 606.13 How many applications for a development grant may an
institution submit?
In any fiscal year, an institution of higher education may--
(a) Submit an application for an individual development grant; and
(b) Be part of a cooperative arrangement application.
(Authority: 20 U.S.C. 1101 et seq.)
Subpart C--How Does the Secretary Make an Award?
Sec. 606.20 How does the Secretary choose applications for funding?
(a) The Secretary evaluates an application on the basis of the
criteria in--
(1) Sections 606.21 and 606.23 for a planning grant; and
(2) Sections 606.22, 606.23, 600.24, and 606.25 for a development
grant.
(b)(1) The Secretary awards up to 100 points for the criteria in
Sec. 606.21 and up to 100 points for the criteria in Sec. 606.22.
(2) The maximum possible score for each complete criterion is in
parentheses.
(c)(1) The Secretary considers funding an application for a
planning grant that scores at least 50 points under Sec. 606.21.
(2) The Secretary considers funding an application for a
development grant that--
(i) Scores at least 50 points under Sec. 606.22;
(ii) Is submitted with a comprehensive development plan that
satisfies all the elements required of such a plan under Sec. 606.8;
and
(iii) In the case of an application for a cooperative arrangement
grant, demonstrates that the grant will enable each eligible
participant to meet the goals and objectives of its comprehensive
development plan better and at a lower cost than if each eligible
participant were funded individually.
(Authority: 20 U.S.C. 1101 et seq.)
Sec. 606.21 What are the selection criteria for planning grants?
The Secretary uses the following criteria to evaluate an
application to determine whether the applicant will produce a good
comprehensive development plan and a fundable application:
(a) Design of the planning process. (Total: 60 points) The
Secretary reviews each application to determine the quality of the
planning process that the applicant will use to develop a comprehensive
development plan and an application for a development grant based on
the extent to which--
(1) The planning process is clearly and comprehensively described
and based on sound planning practice (15 points);
(2) The president or chief executive officer, administrators and
other institutional personnel, students, and governing board members
systematically and consistently will be involved in the planning
process (15 points);
(3) The applicant will use its own resources to help implement the
project (10 points); and
(4) The planning process is likely to achieve its intended results
(20 points).
(b) Key personnel. (Total: 20 points) The Secretary reviews each
application to determine the quality of key personnel to be involved in
the project based on the extent to which--
(1) The past experience and training of key personnel such as the
project coordinator and persons who have key roles in the planning
process are suitable to the tasks to be performed (10 points); and
(2) The time commitments of key personnel are adequate (10 points).
(c) Project Management. (Total: 15 points) The Secretary reviews
each application to determine the quality of the plan to manage the
project effectively based on the extent to which--
(1) The procedures for managing the project are likely to ensure
effective and efficient project implementation (10 points); and
(2) The project coordinator has sufficient authority, including
access to the president or chief executive officer, to conduct the
project effectively (5 points).
(d) Budget. (Total: 5 points) The Secretary reviews each
application to
[[Page 70152]]
determine the extent to which the proposed project costs are necessary
and reasonable. (Approved by the Office of Management and Budget under
control number 1840-0114)
(Authority: 20 U.S.C. 1101 et seq.)
Sec. 606.22 What are the selection criteria for development grants?
The Secretary uses the following criteria to evaluate applications
for development grants:
(a) Quality of the applicant's comprehensive development plan.
(Total: 30 points) The extent to which--
(1) The strengths, weaknesses, and significant problems of the
institution's academic programs, institutional management, and fiscal
stability are clearly and comprehensively analyzed and result from a
process that involved major constituencies of the institution. (12
points);
(2) The goals for the institution's academic programs,
institutional management, and fiscal stability are realistic and based
on comprehensive analysis. (5 points);
(3) The objectives stated in the plan are measurable, related to
institutional goals, and, if achieved, will contribute to the growth
and self-sufficiency of the institution (5 points);
(4) The plan clearly and comprehensively describes the methods and
resources the institution will use to institutionalize practice and
improvements developed under the proposed project, including, in
particular, how operational costs for personnel, maintenance, and
upgrades of equipment will be paid with institutional resources (8
points).
(b) Quality of activity objectives. (Total: 10 points) The extent
to which the objectives for each activity are--
(1) Realistic and defined in terms of measurable results (5
points); and
(2) Directly related to the problems to be solved and to the goals
of the comprehensive development plan (5 points).
(c) Quality of implementation strategy. (Total: 25 points) The
extent to which--
(1) The implementation strategy for each activity is comprehensive
(10 points);
(2) The rationale for the implementation strategy for each activity
is clearly described and is supported by the results of relevant
studies or projects (10 points); and
(3) The timetable for each activity is realistic and likely to be
attained (5 points).
(d) Quality of key personnel. (Total: 10 points) The extent to
which--
(1) The past experience and training of key professional personnel
are directly related to the stated activity objectives (7 points); and
(2) The time commitment of key personnel is realistic (3 points).
(e) Quality of project management plan. (Total: 10 points) The
extent to which--
(1) Procedures for managing the project are likely to ensure
efficient and effective project implementation (5 points); and
(2) The project coordinator and activity directors have sufficient
authority to conduct the project effectively, including access to the
president or chief executive officer (5 points).
(f) Quality of evaluation plan. (Total: 10 points) The extent to
which--
(1) The data elements and the data collection procedures are
clearly described and appropriate to measure the attainment of activity
objectives and to measure the success of the project in achieving the
goals of the comprehensive development plan (5 points); and
(2) The data analysis procedures are clearly described and are
likely to produce formative and summative results on attaining activity
objectives and measuring the success of the project on achieving the
goals of the comprehensive development plan (5 points).
(g) Budget. (Total: 5 points) The extent to which the proposed
costs are necessary and reasonable in relation to the project's
objectives and scope. (Approved by the Office of Management and Budget
under control number 1840-0114)
(Authority: 20 U.S.C. 1101 et seq.)
Sec. 606.23 What special funding consideration does the Secretary
provide?
(a) If funds are available to fund only one additional planning
grant and each of the next fundable applications has received the same
number of points under Sec. 606.21, the Secretary awards additional
points, up to a maximum of two points, to any of those applicants
that--
(1) Has an endowment fund of which the current market value, per
full-time equivalent enrolled student, is less than the average current
market value of the endowment funds, per full-time equivalent enrolled
student, at similar type institutions; (one point) or
(2) Has expenditures for library materials per full-time equivalent
enrolled student which are less than the average expenditure for
library materials per full-time equivalent enrolled student at similar
type institutions. (one point)
(b) If funds are available to fund only one additional development
grant and each of the next fundable applications has received the same
number of points under Sec. 606.22, the Secretary will award additional
points, up to a maximum of three points, to any of those applicants
that--
(1) Has an endowment fund of which the current market value, per
full-time equivalent enrolled student, is less than the average current
market value of the endowment funds, per full-time equivalent enrolled
student, at comparable institutions that offer similar instruction;
(one point)
(2) Has expenditures for library materials per full-time equivalent
enrolled student that are less than the average expenditures for
library materials per full-time equivalent enrolled student at
comparable institutions that offer similar instruction (one point); or
(3) Propose to carry out one or more of the following activities--
(i) Faculty development;
(ii) Funds and administrative management;
(iii) Development and improvement of academic programs;
(iv) Acquisition of equipment for use in strengthening management
and academic programs;
(v) Joint use of facilities; and
(vi) Student services. (one point)
(c) As used in this section, an ``endowment fund'' does not include
any fund established or supported under 34 CFR part 628.
(d) Each year, the Secretary provides prospective applicants with
the average market value of endowment funds and the average expenditure
of library materials per full-time equivalent student.
(e) The Secretary gives priority to each application that contains
satisfactory evidence that the applicant has entered into or will enter
into a collaborative arrangement with at least one local educational
agency or community-based organization to provide that agency or
organization with assistance (from funds other than funds provided
under this part) in--
(1) Reducing the dropout rates of Hispanic students;
(2) Improving rates of academic achievement of Hispanic students;
and
(3) Increasing the rates at which Hispanic high school graduates
enroll in higher education.
(Authority: 20 U.S.C. 1101 et seq.)
[[Page 70153]]
Sec. 606.24 How does the Secretary use an applicant's performance
under a previous development grant when awarding a development grant?
(a)(1) In addition to evaluating an application under the selection
criteria in Sec. 606.22, the Secretary evaluates an applicant's
performance under any previous development grant awarded under the
Developing Hispanic-Serving Institutions Program that expired within
five years of the year when the development grant will begin.
(2) The Secretary evaluates whether the applicant fulfilled, or is
making substantial progress toward fulfilling, the goals and objectives
of the previous grant, including, but not limited to, the applicant's
success in institutionalizing practices developed and improvements made
under the grant.
(3) The Secretary bases the evaluation of the applicant's
performance on information contained in--
(i) Performance and evaluation reports submitted by the applicant;
(ii) Audit reports submitted on behalf of the applicant; and
(iii) Other information obtained by the Secretary, including
reports prepared by the Department.
(b) If the Secretary initially determines that the applicant did
not fulfill the goals and objectives of a previous grant or is not
making substantial progress towards fulfilling those goals and
objectives, the Secretary affords the applicant the opportunity to
respond to that initial determination.
(c) If the Secretary determines that the applicant did not fulfill
the goals and objectives of a previous grant or is not making
substantial progress towards fulfilling those goals and objectives, the
Secretary may--
(1) Decide not to fund the applicant; or
(2) Fund the applicant but impose special grant terms and
conditions, such as specific reporting and monitoring requirements.
(Authority: 20 U.S.C. 1101 et seq.)
Sec. 606.25 What priority does the Secretary use in awarding
cooperative arrangement grants?
Among applications for cooperative arrangement grants, the
Secretary gives priority to proposed cooperative arrangements that are
geographically and economically sound, or will benefit the institutions
applying for the grant.
(Authority: 20 U.S.C. 1101 et seq.)
Subpart D--What Conditions Must a Grantee Meet?
Sec. 606.30 What are allowable costs and what are the limitations on
allowable costs?
(a) Allowable costs. Except as provided in paragraphs (b) and (c)
of this section, a grantee may expend grant funds for activities that
are related to carrying out the allowable activities included in its
approved application.
(b) Supplement and not supplant. Grant funds shall be used so that
they supplement and, to the extent practical, increase the funds that
would otherwise be available for the activities to be carried out under
the grant and in no case supplant those funds.
(c) Limitations on allowable costs. A grantee may not use an
indirect cost rate to determine allowable costs under its grant.
(Authority: 20 U.S.C. 1101 et seq.)
Sec. 606.31 How does a grantee maintain its eligibility?
(a) A grantee shall maintain its eligibility under the requirements
in Sec. 606.2, except for Sec. 606.2(a)(3) and (4), for the duration of
the grant period.
(b) The Secretary reviews an institution's application for a
continuation award to ensure that--
(1) The institution continues to meet the eligibility requirements
described in paragraph (a) of this section; and
(2) The institution is making substantial progress toward achieving
the objectives described in its grant application including, if
applicable, the institution's success in institutionalizing practices
and improvements developed under the grant.
(Authority: 20 U.S.C. 1101 et seq.)
PART 607--STRENGTHENING INSTITUTIONS PROGRAM
2. The authority citation for part 607 continues to read as
follows:
Authority: 20 U.S.C. 1057-1059c, 1066-1069f, unless otherwise
noted.
3. Section 607.2 is amended by revising paragraphs (c), (d), and
(e); and by adding new paragraphs (f) and (g) to read as follows:
Sec. 607.2 What institutions are eligible to receive a grant under the
Strengthening Institutions Program?
* * * * *
(c) For the purpose of paragraphs (e)(2) and (f)(2) of this
section, an institution's enrollment consists of a head count of its
entire student body.
(d) A tribal college or university may receive a grant authorized
under section 316 of the HEA if--
(1) It satisfies the requirements of paragraph (a) of this section,
other than Sec. 607.2(a)(3), and
(2)(i) It meets the definition of the term ``tribally controlled
college or university'' in section 2 of the Tribally Controlled College
or University Assistance Act of 1978; or
(ii) It is listed in the Equity in Educational Land Grant Status
Act of 1994.
(e) An Alaska Native-serving institution may receive a grant under
section 317 of the HEA if--
(1) It satisfies the requirements of paragraph (a) of this section;
and
(2) It has, at the time of application, an enrollment of
undergraduate students that is at least 20 percent Alaska Native
students.
(f) A Native Hawaiian-serving institution may receive a grant
authorized under section 317 of the HEA if--
(1) It satisfies the requirements of paragraph (a) of this section;
and
(2) It has, at the time of application, an enrollment of
undergraduate students that is at least 10 percent Native Hawaiian
students.
(g)(1) An institution that qualifies for a grant under the
Strengthening Historically Black Colleges and Universities Program (34
CFR part 608) or the Developing Hispanic-Serving Institutions Program
(34 CFR part 606) and receives a grant under either of these programs
for a particular fiscal year is not eligible to receive a grant under
this part for the same fiscal year.
(2) A tribal college or university that receives a grant under
section 316 of the HEA or an Alaska Native or Native Hawaiian-serving
institution that receives a grant under section 317 of the HEA may not
concurrently receive other grant funds under the Strengthening
Institutions Program, Strengthening Historically Black Colleges and
Universities Program, or Strengthening Historically Black Graduate
Institutions Program.
4. Section 607.3 is amended by removing the word ``or'' at the end
of paragraph (b)(5); redesignating paragraph (b)(6) as paragraph
(b)(7); and adding a new paragraph (b)(6) to read as follows:
Sec. 607.3 What is an enrollment of needy students?
* * * * *
(b) * * *
(6) It is a tribal college or university; or
* * * * *
5. Section 607.7 is amended by:
A. Revising paragraph (b);
B. Redesignating paragraph (c) as paragraph (e);
[[Page 70154]]
C. adding new paragraphs (c) and (d);
D. Rmoving the definitions of ``College Work-Study Program'',
``Pell Grant Program'', ``Perkins Loan Program'', ``Special Needs
Program'', and ``Supplemental Education Opportunity Grant'' from newly
designated paragraph (e);
E. Revising the definition of ``Institution of higher education''
in newly designated paragraph (e); and
F. Adding, in alphabetical order, new definitions of ``Federal Pell
Grant Program'', ``Federal Perkins Loan Program'', ``Federal
Supplemental Education Opportunity Grant Program'', ``Federal Work-
Study Program'', and ``Low-income individual'' in newly redesignated
paragraph (e).
The revisions and additions read as follows:
Sec. 607.7 What definitions apply?
* * * * *
(b) The following term used in this part is defined in section 312
of the HEA:
Endowment fund
(c) The following terms used in this part are defined in section
316 of the HEA:
Indian
Indian tribe
Tribal college or university
(d) The following terms used in this part are defined in section
317 of the HEA:
Alaska Native
Alaska Native-serving institution
Native Hawaiian
Native Hawaiian-serving institution
(e) * * *
Federal Pell Grant Program means the grant program authorized by
title IV-A-1 of the HEA.
Federal Perkins Loan Program, formerly called the National Direct
Student Loan Program, means the loan program authorized by title IV-E
of the HEA.
Federal Supplemental Education Opportunity Grant Program means the
grant program authorized by title IV-A-3 of the HEA.
Federal Work-Study Program means the part-time employment program
authorized under title IV-C of the HEA.
* * * * *
Institution of higher education means an educational institution
defined in section 101 of the HEA.
* * * * *
Low-income individual means an individual from a family whose
taxable income for the preceding year did not exceed 150 percent of an
amount equal to the poverty level determined by using criteria of
poverty established by the Bureau of Census.
* * * * *
6. Section 607.8(b) is amended by adding paragraphs (b)(5) and
(b)(6) to read as follows:
Sec. 607.8 What is a comprehensive development plan and what must it
contain?
* * * * *
(b) * * *
(5) For a grant under section 316 of the HEA to a tribal college or
university, its five-year plan for improving its services to Indian
students, increasing the rates at which Indian secondary school
students enroll in higher education, and increasing overall
postsecondary retention rates for Indian students.
(6) For a grant under section 317 of the HEA to an Alaska Native-
serving institution or to a Native Hawaiian-serving institution, its
five-year plan for improving its services to Alaska Native or Native
Hawaiian students, respectively.
7. Section 607.9 is amended by revising paragraph (b) to read as
follows:
Sec. 607.9 What are the type, duration and limitations in the awarding
of grants under this part?
* * * * *
(b)(1) An institution that received an individual development grant
of five years may not subsequently receive another individual
development grant for a period of two years from the date on which the
five-year grant period terminates.
(2) A cooperative arrangement grant is not considered to be an
individual development grant under paragraph (b)(1) of this section.
8. Section 607.10 is amended by:
A. Revising paragraph (b)(1) introductory text;
B. Removing the word ``or'' at the end of paragraph (b)(7);
C. Redesignating paragraph (b)(8) as paragraph (b)(13);
D. Adding new paragraphs (b)(8) through (12) and (b)(14);
E. Revising the introductory text in newly designated paragraph
(b)(13) and paragraphs (b)(13)(ii), (v), and (viii);
F. Removing the word ``and'' at the end of newly designated
paragraph (b)(13)(vii);
G. Adding new paragraphs (b)(13)(ix) through (xiii); and
H. Revising paragraphs (c)(6) and (11).
The revisions and additions read as follows:
Sec. 607.10 What activities may and may not be carried out under a
grant?
* * * * *
(b) * * *
(1) Faculty exchanges, faculty fellowships, and faculty development
that provide faculty with the skills and knowledge needed to--
* * * * *
(8) Purchase, rental, or lease of scientific or laboratory
equipment for educational purposes, including instructional and
research purposes;
(9) Construction, maintenance, renovation, and improvement in
classrooms, libraries, laboratories, and other instructional
facilities, including the integration of computer technology into
institutional facilities to create smart buildings;
(10) Establishing or improving a development office to strengthen
or improve contributions from alumni and the private sector;
(11) Establishing or improving an endowment fund, provided a
grantee uses no more than 20 percent of its grant funds for this
purpose and at least matches those grant funds with non-Federal funds;
(12) Creating or improving facilities for Internet or other
distance learning academic instruction capabilities, including purchase
or rental of telecommunications technology equipment or services;
(13) For grants authorized under section 316 of the HEA to tribal
colleges or universities--
* * * * *
(ii) Construction, maintenance, renovation, and improvement in
classroom, library, laboratory, and other instructional facilities,
including purchase or rental of telecommunications technology equipment
or services;
* * * * *
(v) Purchase of library books, periodicals, microfilm, and other
educational materials, including telecommunications program materials;
* * * * *
(viii) Academic tutoring and counseling programs and student
support services designed to improve academic services;
(ix) Academic instruction in disciplines in which Indians are
underrepresented;
(x) Establishing or improving a development office to strengthen or
improve contributions from the alumni and the private sector;
(xi) Establishing or enhancing a program of teacher education
designed to qualify students to teach in elementary schools or
secondary schools, with a particular emphasis on teaching Indian
children and youth, that shall include, as part of such program,
preparation for teacher certification;
[[Page 70155]]
(xii) Establishing community outreach programs that encourage
Indian elementary school and secondary school students to develop the
academic skills and the interest to pursue postsecondary education; and
(xiii) Establishing or improving an endowment fund, provided a
grantee uses no more than 20 percent of its grant funds for this
purpose and at least matches those grant funds with non-Federal funds;
or
(14) For grants authorized under section 317 of the HEA to Alaska
Native-serving institutions and Native Hawaiian-serving institutions--
(i) Purchase, rental, or lease of scientific or laboratory
equipment for educational purposes, including instructional and
research purposes;
(ii) Renovation and improvement in classroom, library, laboratory,
and other instructional facilities;
(iii) Support of faculty exchanges, faculty development, and
faculty fellowships to assist in attaining advanced degrees in the
faculty's field of instruction;
(iv) Curriculum development and academic instruction;
(v) Purchase of library books, periodicals, microfilm, and other
educational materials;
(vi) Funds and administrative management, and acquisition of
equipment for use in strengthening funds management;
(vii) Joint use of facilities such as laboratories and libraries;
(viii) Academic tutoring and counseling programs and student
support services.
(c) * * *
(6) Developing or improving community-based or community services
programs, unless the program provides academic-related experiences or
academic credit toward a degree for degree students, or unless it is an
outreach program that encourages Indian elementary school and secondary
school students to develop the academic skills and the interest to
pursue postsecondary education.
* * * * *
(11) Services to high school students, unless they are part of a
program to encourage Indian students to develop the academic skills and
the interest to pursue postsecondary education.
* * * * *
9. Section 607.11 is amended by revising paragraphs (c) and (d);
and removing paragraph (e) to read as follows:
Sec. 607.11 What must be included in individual development grant
applications?
* * * * *
(c) A description of any activities that were funded under previous
development grants awarded under the Strengthening Institutions Program
that expired within five years of when the development grant will begin
and the institution's justification for not completing the activities
under the previous grant, if applicable; and
(d) If the applicant is applying to carry out more than one
activity--
(1) A description of those activities that would be a sound
investment of Federal funds if funded separately;
(2) A description of those activities that would be a sound
investment of Federal funds only if funded with the other activities;
and
(3) A ranking of the activities in preferred funding order.
10. Section 607.13 is amended by revising the introductory text and
paragraph (a) to read as follows:
Sec. 607.13 How many applications for a development grant may an
institution submit?
In any fiscal year, an institution of higher education that meets
the eligibility requirements under sections 311, 316, and 317 of the
HEA may--
(a) Submit an application for a development grant authorized under
sections 311, 316, and 317 of the HEA; and
* * * * *
11. Section 607.20 is amended by revising paragraphs (a)(2) and
(b)(1) to read as follows:
Sec. 607.20 How does the Secretary choose applications for funding?
(a) * * *
(2) Sections 607.22, 607.23, 607.24, and 607.25 for a development
grant.
(b)(1) With regard to applicants that satisfy the requirements of
paragraph (d) of this section, for each fiscal year, the Secretary
awards individual development grants to applicants that are not
individual development grantees under this part, before the Secretary
awards an individual development grant to any applicant that is an
individual grantee under this part.
* * * * *
Sec. 607.23 [Amended]
12. Section 607.23 is amended by removing the words ``is less than
the average expenditure'', and adding, in their place, ``are less than
the average expenditures'' in paragraph (b)(2); and by removing
paragraph (e).
Sec. 607.24 [Amended]
13. Section 607.24 is amended by removing the words ``Strengthening
Institutions and Special Needs Programs'', and adding, in their place
``the Strengthening Institutions Program'' in paragraph (a)(1).
[FR Doc. 99-32323 Filed 12-14-99; 8:45 am]
BILLING CODE 4000-01-U
/pre>