Closed Rulemaking

This page contains materials from recent, closed LSC rulemakings.  For materials from earlier rulemakings, please contact LSC.

45 CFR Parts 1610—Use of Non-LSC Funds and 1630—Cost Standards (2020)

This proposed rulemaking would revise LSC regulations addressing the use of non-LSC funds by LSC recipients and the requirement that recipients maintain program integrity with respect to other entities that engage in LSC-restricted activities (Part 1610), and also providing cost standards for LSC grants and permiting LSC to question costs when a recipient uses non-LSC funds in violation of LSC rules (Part 1630). LSC proposes technical and stylistic updates to both rules without any substantive changes.

Final Rule—Adopted by the LSC Board

On October 7, 2020, the Federal Register published the final rule with an effective date of November 6, 2020.

On July 28, 2020, at the July LSC Board Meeting, the Board adopted the final rule with minor edits to the preamble after consideration on July 27 by the Operations and Regulations Committee.  

FNPRM—Further Notice of Proposed Rulemaking—Proposed Substantive Changes to Part 1630

This notice identifies for public comment one substantive change to LSC's regulation regarding cost standards at 45 C.F.R. part 1630. Currently, § 1630.16 authorizes disallowing costs from LSC funds in an amount equivilant to any amount of non-LSC funds used in violation of the restrictions on the use of non-LSC funds, with one ommission.  The rule includes the application of the LSC statutory restrictions to public, private, and tribal funds, but it omits the restrictions in the LSC Act applicable to unauthorized uses of public funds.  Thus, in this one situation, if LSC finds that a violation has occurred, then LSC has all available remdial options except disallowed costs.  By contrast, all of the statutory restrictions on the use of non-LSC funds appear in 45 C.F.R. Part 1610, both as is and as proposed in the August 2020 NPRM.  The FNPRM provides background on this issue and seeks public comment. 

Comments that propose keeping the gap between part 1610 and § 1630.16 must:

  1. Identify a valid purpose for the gap consistent with the statutory restrictions;
  2. Explain why, for the LSC Act Restrictions, § 1630.16 should not apply to unauthorized uses of public funds that violate the LSC Act while continuing to apply to unauthorized uses of tribal funds that violate the LSC Act;
  3. Explain why § 1630.16 should not apply to unauthorized uses of public funds that violate the LSC Act while continuing to apply to any uses of public funds that violate the restrictions in the LSC appropriation.

Comments that otherwise oppose the proposed cross reference to part 1610 in § 1630.16(a) must provide a justification for any distinction between the rules for the use on non-LSC funds in part 1610 and in § 1630.16, including justifying the distinction consistent with the statutory restrictions and justifying any distinctions in § 1630.16 among the different types of restrictions on non-LSC funds set out in part 1610.

Comments

The comment period closed on May 15, 2020.  Four comments were submitted.

NPRM—Notice of Proposed Rulemaking—Proposed Rule

Comments

The comment period closed on October 11, 2019.  Two comments were submitted before the deadline and two after the deadline.

For further information, please contact Mark Freedman, Senior Associate General Counsel, Legal Services Corporation, 3333 K Street NW, Washington, DC 20007; (202) 295-1623 (phone), (202) 337-6519 (fax), or mfreedman@lsc.gov.

45 C.R.F. Part 1607 – Governing Bodies (2019)

The final rule changes two requirements and gives recipient governing bodies increased flexibility in recruiting, appointing, and retaining client-eligible members.  First, LSC revised the definition of the term eligible client to remove the requirement that a client-eligible board member be financially eligible at the time of reappointment to a governing body.  Second, LSC eliminated the requirement that client-eligible members be appointed by outside groups.  The final rule gives each recipient governing body the discretion to continue applying those provisions if it wishes, but eliminates the requirement to do so.
Bullet points:

Creation of a "Touhy" Rule Governing Subpoenas and Requests for Documents and Testimony Involving LSC (2018)

LSC proposed to create a rule governing subpoenas and requests for LSC documents and testimony by non-federal litigants in cases in which LSC is not a party. Currently, LSC has no internal or external procedures in place to process such requests. This rule provides the public with guidance on where to send requests and establishes procedures by which those requests will be processed.

Comments—No Comments Received

Rescission of 45 C.F.R. Part 1603—State Advisory Councils (2018)

LSC commenced rulemaking to rescind Part 1603 as obsolete.

Cost Standards and Procedures; Purchasing and Property Management—45 CFR Parts 1630, 1631, and the Property Acquisition and Management Manual (2017)

Information about this rulemaking appears at the Rulemaking—Cost Standards and Procedures; Purchasing and Property Management webpage.  LSC published new final rules on August 10, 2017, which were effective December 31, 2017.

45 CFR Part 1629—Bonding Requirements for Recipients (2017)

LSC has made several changes to the bonding requirements applicable to recipients of LSC grants, including (1) defining the term “annualized funding level” to encompass Basic Field Grants and any special grant funds (for example:  Technology Initiative Grants, Pro Bono Innovation Fund Grants, or emergency relief grants); (2) expanding the list of individuals required to be covered by a recipient’s bond; (3) revising the rule to permit recipients to purchase fidelity bonds or employee dishonesty policies that include deductibles; and (4) raising the minimum level of coverage.   

The final rule will become effective on September 8, 2017.

LSC recipients and subrecipients must comply with the rule no later than December 31, 2017.

Final Rule

Proposed Rule

Comments on Proposed Rule

45 CFR Part 1609—Fee-Generating Cases (2017)

Part 1609 contains LSC’s guidelines describing when recipients may use LSC funds to take fee-generating cases. This final rule revises the Legal Services Corporation (LSC or Corporation) regulation regarding fee-generating cases. This rule clarifies the definition of “fee-generating case,” clarifies that brief advice is permitted by the regulation, and revises how a recipient accounts for attorneys' fees awards.

Final Rule

Proposed Rule

Comments

45 CFR Parts 1610, 1627, and 1630 - Use of Non-LSC Funds, Transfer of LSC Funds, Program Integrity; Subgrants and Membership Fees or Dues; Cost Standards and Procedures (2017)

LSC adopted revisions to these rules that are effective on April 1, 2017.  

Final Rule

Final Rule Consideration

Board Consideration of Final Rule—January 26–28, 2017
Board Briefing on Revisions to Final Rule—November 22, 2016
Operations & Regulations Committee Consideration of Final Rule—October 16, 2016 

Further Proposed Rulemaking (FNPRM)—April 2016

FNPRM Comments

Proposed Rulemaking (NPRM)—April 2015

NPRM Comments

45 CFR Part 1602—Procedures for Disclosure of Information Under the Freedom of Information Act (2016)

Public Comments

45 CFR Part 1628 - Recipient Fund Balances

1628 Comments

45 CFR Part 1640 - Application of Federal Law to LSC Recipients

Public Comments 45 CFR 1640

45 CFR Part 1614 - Private Attorney Involvement (PAI) 

45 CFR Part 1613 - Restrictions on legal assistance with respect to criminal proceedings in tribal courts

Public Comments 45 CFR Part 1613

45 CFR Part 1626—Restrictions on Legal Assistance to Aliens

Public Comments 45 CFR Part 1626

National Immigrant Women's Advocacy Project (NIWAP) - American University, Washington College of Law

Continuation of Public Comment

Rulemaking:  Enforcement Mechanisms

Comments received on August 7, 2012, FNPRM

Comments received on January 2012 NPRM

Rulemaking: 45 CFR Part 1609 - Fee Generating Cases

Rulemaking - Elimination of 45 CFR Part 1642—Attorneys' Fees Restriction

Potential Rulemaking - 45 CFR Part 1607

Potential Rulemaking - 45 CFR Part 1622

"Alternative Sanctions" - Revisions to 45 CFR Parts 1606 (Termination and Debarment Proceedings; Recompetition) and 1623 (Suspension) 

Development of 2007 Regulatory Agenda

Revisions to 45 CFR Part 1602 - Procedures for Disclosure of Information under the Freedom of Information Act

Revisions to 45 CFR Part 1626

Revision of 45 CFR Part 1621

Comments on 1621 NPRM

Revision of 45 CFR Part 1624

Comments on Part 1624 NPRM

Revision of 45 CFR Part 1626.10(a)

Revision of 45 CFR Part 1611

2005–2006 Regulatory Agenda

Comments

Rulemaking: 45 CFR Part 1609 - Fee Generating Cases

Rulemaking - "Alternative Sanctions" 2007-2008

Removal of 45 CFR Part 1631

Selected Materials from pre-2005 Rulemakings

1996 Rulemakings

In 1996, LSC engaged in many rulemakings to implement new statutory restrictions.  The federal register notices for those materials appears on the pages for each regulation in the Regulations Publication History section of this website.  Below are the majority of the comments submitted for those rulemakings.

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