FR Doc 03-24704
[Federal Register: September 30, 2003 (Volume 68, Number 189)]
[Notices]               
[Page 56274-56277]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr30se03-54]                         

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DEPARTMENT OF EDUCATION

RIN 1820 ZA30

 
National Institute on Disability and Rehabilitation Research

AGENCY: Office of Special Education and Rehabilitative Services, 
Department of Education.

ACTION: Notice of final priorities.

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SUMMARY: The Assistant Secretary for Special Education and 
Rehabilitative Services announces final priorities for the Alternative 
Financing Mechanisms Program (AFP) under title III of the Assistive 
Technology Act of 1998 (AT Act) that is administered by the National 
Institute on Disability and Rehabilitation Research (NIDRR) and the 
Access to Telework Fund Program (Telework) under section 303(b) of the 
Rehabilitation Act of 1973, as amended (Rehab Act), that is 
administered by the Rehabilitation Services Administration (RSA). The 
Assistant Secretary may use these priorities for competitions in fiscal 
year (FY) 2003 and later years.

Waiver of Delayed Effective Date

    The Administrative Procedure Act requires that a proposed rule be 
published at least 30 days before its effective date, except as 
otherwise provided for good cause (20 U.S.C. 553(d)(3)). In order to 
make timely grant awards, the Secretary has determined that a delayed 
effective date is impracticable.

FOR FURTHER INFORMATION CONTACT: Carol Cohen, U.S. Department of 
Education, 400 Maryland Avenue, SW., room 3420, Switzer Building, 
Washington, DC 20202-2645. Telephone: (202) 205-5666 or via the Internet: carol.cohen@ed.gov.
    If you use a telecommunications device for the deaf (TDD), you may 
call the TDD number at (202) 205-4475.
    Individuals with disabilities may obtain this document in an 
alternative format (e.g., Braille, large print, audiotape, or computer 
diskette) on request to the contact person listed under FOR FURTHER 
INFORMATION CONTACT.

SUPPLEMENTARY INFORMATION: We published a notice of proposed priorities 
and change to the application process for the Alternative Financing 
Mechanisms Program (AFP) and the Access to Telework Fund Program 
(Telework) in the Federal Register on August 5, 2003 (68 FR 46411). 
There are no significant differences between the notice of proposed 
priorities and this notice of final priorities.

Public Comment

    In the notice of proposed priorities, we invited comments on the 
proposed priorities. The only substantive comments we received 
suggested changes the law does not authorize us to make under the 
applicable statutory authority.


    Note: This notice does not solicit applications. In any year in 
which we choose to use one or more of these priorities, we invite 
applications through a notice in the Federal Register. A notice 
inviting applications for FY 2003 awards was published in the 
Federal Register on August 5, 2003 (68 FR 46418).


    When inviting applications we designate each priority as absolute, 
competitive preference, or invitational. The effect of each type of 
priority follows:
    Absolute priority: Under an absolute priority, we consider only 
applications that meet the priority (34 CFR 75.105(c)(3)).
    Competitive preference priority: Under a competitive preference 
priority, we give competitive preference to an application by either 
(1) awarding additional points, depending on how well or the extent to 
which the application meets the priority (34 CFR 75.105(c)(2)(i)); or 
(2) selecting an application that meets the competitive priority over 
an application of comparable merit that does not meet the competitive 
priority (34 CFR 75.105(c)(2)(ii)).
    Invitational priority: Under an invitational priority, we are 
particularly interested in applications that meet the invitational 
priority. However, we do not give an application that meets the 
priority a competitive or absolute preference over other applications 
(34 CFR 75.105(c)(1)).

Priorities

Eligibility for an AFP Grant

    States that receive or have received grants under section 101 of 
the AT Act are eligible for an AFP grant. Under section 3(a)(13)(A) of 
the AT Act, State means each of the several States of the United 
States, the District of Columbia, the Commonwealth of Puerto Rico, the 
United States Virgin Islands, Guam, American Samoa, and the 
Commonwealth of the Northern Mariana Islands.

Eligibility for a Telework Grant

    States as defined in the AT Act and governing bodies of American 
Indian tribes located on Federal and State reservations consistent with 
section 7(19)(B) of the Rehab Act are eligible for a Telework grant. 
Consortia of States and American Indian tribes are also eligible for a 
Telework grant.

Joint Administration of Grants

    States may jointly apply for and administer an AFP grant and a 
Telework grant. States that submit one application for the two 
priorities must meet the requirements for each priority and will 
compete separately under each priority.

Background

    The background statements for the following priorities were 
published in the notice of proposed priorities on August 5, 2003 (68 FR 
46411).

Priority 1: Alternative Financing Mechanism Program

    The purpose of these requirements is to increase the funding for 
and provision of AT (Sec. 2(b)(1)(A)). The AFP will: (1) achieve the 
program's short-term goal of purchasing AT through alternative 
financing mechanisms for individuals with disabilities, and other 
eligible parties; and (2) achieve the program's long-term goals of 
establishing a nationwide network of permanent State AFPs that promote 
independence and choice.
    States that receive or have received grants under section 101 of 
the AT Act are eligible to compete for an AFP (Sec. 303(a)). In its 
application, a State must identify and describe one or more of the 
following types of AFP programs that the State will implement:
    (1) a low-interest loan fund;
    (2) an interest buy-down program;
    (3) a revolving loan fund;
    (4) a loan guarantee or insurance program;
    (5) a program operated by a partnership among private entities for 
the purchase, lease, or other acquisition of AT devices or AT services; 
or

[[Page 56275]]

    (6) another mechanism that meets the requirements of title III and 
is approved by the Secretary (Sec. 301(b)).
    According to section 301(a) of the AT Act, the AFP is designed to 
allow individuals with disabilities and their family members, 
guardians, advocates, and authorized representatives to purchase AT. 
The terms ``AT devices'' and ``AT services'' are defined in section 
3(a) of the AT Act. When family members, guardians, advocates, and 
authorized representatives (including employers who have been 
designated by an individual with a disability as an authorized 
representative) receive AFP support to purchase AT, the purchase must 
be on behalf of an individual with a disability, i.e., the AT that is 
purchased must be solely for the benefit of that individual.
    In addition, an applicant must submit the following assurances:
    (1) Nature of the Match: an assurance that the State will provide 
the non-Federal share (25 percent) of the cost of the AFP in cash, from 
State, local, or private sources (Sec. 303(b)(1)). An applicant must 
identify the amount of Federal funds the State is requesting and the 
amount of cash that the State is going to generate as a match as well 
as the source of the cash.
    (2) Permanence of the Program: an assurance that the AFP will 
continue on a permanent basis (Sec. 303(b)(2)).
    A State's obligation to implement the AFP program consistent with 
all of the requirements, including reporting requirements, continues 
throughout the project period until there are no longer any funds 
available to operate the AFP and all outstanding loans have been 
repaid.
    If a State decides to terminate its AFP while there are still funds 
available to operate the program, the State must return the Federal 
share of the funds remaining in the permanent separate account to NIDRR 
(e.g., 75 percent if the original State:Federal match was 1:3) except 
for funds being used for grant purposes, such as loan guarantees for 
outstanding loans. However, before closing out its grant, the State 
must also return the Federal share of any principal and interest 
remitted to it on outstanding loans and any other funds remaining in 
the permanent separate account, such as funds being used as loan 
guarantees for those loans.
    (3) Consumer Choice and Control: an assurance that, and information 
describing the manner in which, the AFP will expand and emphasize 
consumer choice and control (Sec. 303(b)(3)).
    (4) Supplement Not Supplant: an assurance that the funds made 
available through the grant to support the AFP will be used to 
supplement and not supplant other Federal, State, and local public 
funds expended to provide alternative financing mechanisms (Sec. 
303(b)(4)).
    (5) Permanent Separate Account: an assurance that the State will 
ensure that (A) all funds that support the AFP, including funds repaid 
during the life of the program, will be placed in a permanent separate 
account and identified and accounted for separately from any other 
fund; (B) if the organization administering the program invests funds 
within this account, the organization will invest the funds in low-risk 
securities in which a regulated insurance company may invest under the 
law of the State; and (C) the organization will administer the funds 
with the same judgment and care that a person of prudence, discretion, 
and intelligence would exercise in the management of the financial 
affairs of such person (Sec. 303(b)(5)).
    During the first 12-month budget period, a grantee must deposit its 
matching funds and its Federal award funds in the permanent and 
separate account.
    (6) Use and Control of Funds: an assurance that (A) funds comprised 
of the principal and interest from the account described in paragraph 
(5) will be available to support the AFP; and (B) any interest or 
investment income that accrues on or derives from such funds after such 
funds have been placed under the control of the organization 
administering the AFP, but before such funds are distributed for 
purposes of supporting the program, will be the property of the 
organization administering the program (Sec. 303(b)(6)).
    This assurance regarding the use and control of funds applies to 
all funds derived from the AFP including the original Federal award, 
the State matching funds, AFP funds generated by either interest 
bearing accounts or investments, and all principal and interest paid by 
borrowers of the AFP who are extended loans from the permanent separate 
account.
    (7) Indirect Costs: an assurance that the percentage of the funds 
made available through the grant that is used for indirect costs will 
not exceed 10 percent (Sec. 303(b)(7)).
    For each 12-month budget period, grantees must recalculate their 
allowable indirect cost rate, which may not exceed 10 percent of the 
amount of funds in the permanent and separate account and any 
outstanding loans from that account.
    (8) Contract with a Community-based Organization: an assurance that 
the State will enter into a contract with a community-based 
organization (including a group of such organizations) that has 
individuals with disabilities involved in organizational decision 
making at all organizational levels, to administer the AFP. The 
contract will: (1) Include a provision requiring that the program 
funds, including the Federal and non-Federal shares of the cost of the 
program, be administered in a manner consistent with the provisions of 
title III; (2) include any provision the Secretary requires concerning 
oversight and evaluation necessary to protect Federal financial 
interests; and (3) require the community-based organization to enter 
into a contract, to expand opportunities under title III and facilitate 
administration of the AFP, with commercial lending institutions or 
organizations or State financing agencies (Sec. 304 (a) and (b)).
    During the first 12-month budget period, a grantee must enter into 
the contract with a CBO and ensure that the CBO has entered into the 
contract with the commercial lending institutions or organizations or 
State financing agencies.
    (9) Administrative Policies and Procedures: an assurance that the 
State and any community-based organization that enters into a contract 
with the State under title III, will submit to the Secretary the 
following policies and procedures for administration of the AFP: (1) A 
procedure to review and process in a timely manner requests for 
financial assistance for immediate and potential technology needs, 
including consideration of methods to reduce paperwork and duplication 
of effort, particularly relating to need, eligibility, and 
determination of the specific AT device or service to be financed 
through the program; (2) A policy and procedure to ensure that access 
to the AFP shall be given to consumers regardless of type of 
disability, age, income level, location of residence in the State, or 
type of AT device or AT service for which financing is requested 
through the program; and (3) A procedure to ensure consumer-controlled 
oversight of the program (Sec. 305).
    Grantees must submit the administrative policies and procedures 
required in this assurance within six months of the start of the grant.
    (10) Data Collection: an assurance that the State will collect the 
following: (1) Information on the type of alternative financing 
mechanisms used by the State and the community-based organization with 
which each State entered into a

[[Page 56276]]

contract, under the program (Sec. 307); (2) the amount of assistance 
given to consumers through the program (who shall be classified by age, 
type of disability, type of AT device or AT service financed through 
the program, geographic distribution within the State, gender, and 
whether the consumers are part of an underrepresented population or 
rural population) (Sec. 307); and (3) information on the program's 
short-term and long-term goals.
    Grantees must enter the data requested in this assurance, and other 
data the Secretary may require, in the system developed by the 
Secretary. The Technical Assistance provider has developed a 
(voluntary) web-based data collection instrument to assist the AFP 
grantees for this purpose. For more information on the data collection 
system, products, and reports, see http://www.resna.org/AFTAP/loan/index.html.
 Grantees must enter the data elements contained in this 
form as well as specific information (to be determined) pertaining to 
the short-term and long-terms goals.
    Through the analysis of data collected under the following 
reporting requirements, the Secretary will assess grantee success in 
meeting the program's overall goals of:
    (1) increasing access to alternative financing programs for the 
purchases of AT for individuals with disabilities; and
    (2) establishing a nationwide network of permanent State AFPs that 
promote independence and choice.
    Performance measures used to determine whether the goals have been 
accomplished will include: (1) Number of loan applications; (2) number 
of loans; (3) amount and terms of each loan; (4) number of loan 
applications denied and the reasons for the denials; (5) number of 
individuals with disabilities who obtained AT; (6) purpose and type of 
the AT purchased; (7) default rate and net losses; (8) number of States 
that have established new loan program or expanded existing loan 
programs; and (9) State loan capacity.
    Grantee evaluation systems must be capable of collecting and 
analyzing this and any additional required information.

Priority 2: Access to Telework Fund

    In its application, a State or Indian tribe must identify and 
describe one or more of the following types of programs that the State 
will implement:
    (1) a low-interest loan fund;
    (2) an interest buy-down program;
    (3) a revolving loan fund;
    (4) a loan guarantee or insurance program;
    (5) a program operated by a partnership among private entities for 
the purchase, lease, or other acquisition of computers and other 
equipment, including adaptive equipment;
    (6) another mechanism that meets the requirements and intent of 
this program and is approved by the Secretary.
    In addition, an applicant must submit the following assurances:
    (1) Nature of the Match: an assurance that the State or Indian 
tribe will provide the non-Federal share (10 percent) of the cost of 
Telework in cash, from State or Indian tribe, local, or private 
sources. An applicant must identify the amount of Federal funds it is 
requesting and the amount of cash that the State or Indian tribe is 
going to generate as a match as well as the source of the cash.
    (2) Permanence of the Program: an assurance that Telework will 
continue on a permanent basis.
    A State or Indian tribe's obligation to implement Telework 
consistent with all of the requirements, including reporting 
requirements, continues throughout the project period until there are 
no longer any funds available to operate Telework and all outstanding 
loans have been repaid.
    If a State or Indian tribe decides to terminate its Telework grant 
while there are still funds available to operate the program, the State 
or Indian tribe must immediately return the Federal share of the funds 
remaining in the permanent separate account to RSA (e.g., 90 percent if 
the original State or Indian tribe: Federal match was 1:9) except for 
funds being used for grant purposes, such as loan guarantees for 
outstanding loans. However, before closing out its grant, the State or 
Indian tribe must also return the Federal share of any principal and 
interest remitted to it on outstanding loans and any other funds 
remaining in the permanent separate account, such as funds being used 
as loan guarantees for those loans.
    (3) Consumer Choice and Control: an assurance that, and information 
describing the manner in which, Telework will expand and emphasize 
consumer choice and control.
    (4) Supplement Not Supplant: an assurance that the funds made 
available through the grant to support Telework will be used to 
supplement and not supplant other Federal, State or Indian tribe, and 
local public funds to support similar services to individuals with 
disabilities.
    (5) Permanent Separate Account: an assurance that the State or 
Indian tribe will ensure that (A) all funds that support Telework, 
including funds repaid during the life of the program, will be placed 
in a permanent separate account and identified and accounted for 
separately from any other fund; (B) if the organization administering 
the program invests funds within this account, the organization will 
invest the funds in low-risk securities in which a regulated insurance 
company may invest under the law of the State; and (C) the organization 
will administer the funds with the same judgment and care that a person 
of prudence, discretion, and intelligence would exercise in the 
management of the financial affairs of such person.
    During the first 12-month budget period, a grantee must deposit its 
matching funds and its Federal award funds in the permanent and 
separate account.
    (6) Use and Control of Funds: an assurance that (A) funds comprised 
of the principal and interest from the account described in paragraph 
(5) will be available to support Telework; and (B) any interest or 
investment income that accrues on or derives from such funds after such 
funds have been placed under the control of the organization 
administering Telework, but before such funds are distributed for 
purposes of supporting the program, will be the property of the 
organization administering the program.
    This assurance regarding the use and control of funds applies to 
all funds derived from Telework including the original Federal award, 
the State or Indian tribe matching funds, Telework funds generated by 
either interest bearing accounts or investments, and all principal and 
interest paid by borrowers of Telework who are extended loans from the 
permanent separate account.
    (7) Indirect Costs: an assurance that the percentage of the funds 
made available through the grant that is used for indirect costs will 
not exceed 10 percent.
    For each 12-month budget period, grantees must recalculate their 
allowable indirect cost rate, which may not exceed 10 percent of the 
amount of funds in the permanent and separate account and any 
outstanding loans from that account.
    (8) Administrative Policies and Procedures: an assurance that the 
State or Indian tribe will submit to the Secretary the following 
policies and procedures for administration of Telework: (1) A procedure 
to review and process in a timely manner requests for financial 
assistance for immediate and potential needs, including consideration 
of methods to reduce paperwork and duplication of effort, particularly 
relating to need, eligibility, and determination of the specific device 
or

[[Page 56277]]

service to be financed through the program; (2) A policy and procedure 
to ensure that access to Telework shall be given to consumers 
regardless of type of disability, age, income level, location of 
residence in the State or Indian tribe, or type of device or service 
for which financing is requested through the program; and (3) A 
procedure to ensure consumer-controlled oversight of the program.
    Grantees must submit the administrative policies and procedures 
required in this assurance within six months of the start of the grant.
    (9) Data Collection: an assurance that the State or Indian tribe 
will collect the following: (A) Information on whether the program is 
achieving its short-term goal of increasing access to technology for 
disabled individuals through the provision of loans that must be used 
to purchase computers and other equipment, including adaptive 
equipment, so that individuals with disabilities can telework from home 
and other remote sites; and (B) Information on whether the program is 
achieving its long-term goal of increasing employment opportunities and 
competitive employment outcomes for individuals with disabilities.
    Grantees must enter the data requested in this assurance, and other 
data the Secretary may require, in the system developed by the 
Secretary.
    Through the analysis of data collected under the following 
reporting requirements, the Secretary will assess grantee success in 
meeting the program's overall goals of: (1) Increasing access to 
technology for disabled individuals; and (2) Increasing employment 
opportunities and competitive employment outcomes for individuals with 
disabilities.
    Performance measures used to determine whether the goals have been 
accomplished will include: (1) Number of loan applications; (2) number 
of loans; (3) amount and terms of each loan; (4) number of loan 
applications denied and the reasons for the denials; (5) the types of 
equipment financed, including the total number of each type of 
equipment financed; (6) number of individuals who obtained telework 
employment as a result of Telework loans; (7) default rate and net 
losses; and (8) the total financial contribution to the project, 
including the Federal share and non-Federal matching contributions, and 
the source of the non-Federal share.
    Grantee evaluation systems must be capable of collecting and 
analyzing this and any additional information as required by the 
Secretary.
    In addition, each State applicant must provide the following 
assurance:
    Contract with a Community-based Organization: an assurance that the 
State (note: Indian tribes are exempt from this requirement) will enter 
into a contract with a community-based organization (including a group 
of such organizations) that has individuals with disabilities involved 
in organizational decision making at all organizational levels, to 
administer Telework. The contract will: (1) Include a provision 
requiring that the program funds, including the Federal and non-Federal 
shares of the cost of the program, be administered in a manner 
consistent with the provisions of this priority; (2) include any 
provision the Secretary requires concerning oversight and evaluation 
necessary to protect Federal financial interests; and (3) require the 
community-based organization to enter into a contract, to expand 
opportunities under this priority and facilitate administration of 
Telework, with commercial lending institutions or organizations or 
State financing agencies.
    During the first 12-month budget period, a grantee must enter into 
the contract with a CBO and ensure that the CBO has entered into the 
contract with the commercial lending institutions or organizations or 
State financing agencies.

Applicability of Education Department General Administrative 
Regulations (EDGAR) to AFP and Telework

    In general, EDGAR applies to these two grants except to the extent 
it is inconsistent with the purpose and intent of title III of the AT 
Act, section 303(b) of the Rehab Act, or the requirements in this 
notice. Specifically, grantees are exempt from section 80.21(i) 
regarding interest earned on advances and the addition method in 
section 80.25(g)(2) applies to program income rather than the deduction 
method in section 80.25(g)(1). Also, sections 75.560-75.564 do not 
apply to the extent that these sections of EDGAR are inconsistent with 
the AFP and Telework requirement that indirect costs cannot exceed 10 
percent. Finally, section 75.125, which requires applicants to submit a 
separate application for each program, does not apply to this 
competition.

Electronic Access to This Document

    You may review this document, as well as all other Department of 
Education documents published in the Federal Register, in text or Adobe 
Portable Document Format (PDF) on the Internet at the following site: http://www.ed.gov/news/fedregister/.
    To use PDF you must have Adobe Acrobat Reader, which is available 
free at this site. If you have questions about using PDF, call the U.S. 
Government Printing Office (GPO), toll free, at 1-888-293-6498; or in 
the Washington, DC, area at (202) 512-1530.


    Note: The official version of this document is the document 
published in the Federal Register. Free Internet access to the 
official edition of the Federal Register and the Code of Federal 
Regulations is available on GPO access at: http://www.gpoaccess.gov/nara/index.html.

(Catalog of Federal Domestic Assistance Number 84.224C, Alternative 
Financing Program and 84.235T, Access to Telework Fund Program.)

    Program Authority: 29 U.S.C. 773(b) and 29 U.S.C. 3051-3056.

    Dated: September 25, 2003.
Robert H. Pasternack,
Assistant Secretary for Special Education and Rehabilitative Services.
[FR Doc. 03-24704 Filed 9-29-03; 8:45 am]

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