State-Administered Programs, 24824-24829 [E6-6355]
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Federal Register / Vol. 71, No. 81 / Thursday, April 27, 2006 / Proposed Rules
organic slaughter stock unless she was
raised organically from the last third of
the mother’s gestation, the same as other
slaughter livestock (except poultry,
which must be raised organically
beginning with the second day of life).
That remains the same in the NOP
regulation.
In providing the transition language,
entry in organic dairying may become
easier, which could ease current milk
shortages in the organic milk market at
retail. Certainly it should help smaller
dairy farmers entering the organic
industry who may be faced with having
to purchase higher priced organic feed,
by allowing them to graze dairy
livestock on their land that is being
transitioned to organic certification.
With respect to alternatives to this
proposed rule, this proposed rule
merely implements language which
Congress has enacted and complies with
the court’s final judgment and order.
AMS is committed to compliance
with the Government Paperwork
Elimination Act (GPEA), which requires
Government agencies in general to
provide the public the option of
submitting information or transacting
business electronically to the maximum
extent possible.
USDA has not identified any relevant
Federal rules that duplicate, overlap, or
conflict with this rule.
No additional collection or
recordkeeping requirements are
imposed on the public by this proposed
rule. Accordingly, OMB clearance is not
required by § 350(h) of the Paperwork
Reduction Act of 1995, 44 U.S.C. 3501,
et seq., or OMB’s implementing
regulation at 5 CFR part 1320.
D. General Notice of Public Rulemaking
This proposed rule reflects
amendments made by Congress to the
OFPA that were passed on November
10, 2005 and a court final order that
requires USDA to publish final revisions
to the NOP regulations within 360 days
of the court order, by June 4, 2006.
Accordingly, AMS believes that a 15day period for interested persons to
comment on this rule is appropriate.
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List of Subjects in 7 CFR Part 205
Administrative practice and
procedure, Agriculture, Animals,
Archives and records, Imports, Labeling,
Organically produced products, Plants,
Reporting and recordkeeping
requirements, Seals and insignia, Soil
conservation.
For the reasons set forth in the
preamble, 7 CFR part 205, is proposed
to be amended as follows:
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PART 205—NATIONAL ORGANIC
PROGRAM
DEPARTMENT OF EDUCATION
The authority citation for 7 CFR part
205 continues to read as follows:
RIN 1890–AA13
1. Authority: 7 U.S.C. 6501–6522.
2. Section 205.236(a)(2) is revised to
read as follows:
§ 205.236
Origin of livestock.
(a) * * *
(2) Dairy animals. Milk or milk
products must be from animals that
have been under continuous organic
management beginning no later than 1
year prior to the production of the milk
or milk products that are to be sold,
labeled, or represented as organic,
Except, That, crops and forage from land
included in the organic system plan of
a dairy farm that is in the third year of
organic management may be consumed
by the dairy animals of the farm during
the 12-month period immediately prior
to the sale of organic milk and milk
products;
(i) Once an entire, distinct herd has
been converted to organic production,
all dairy animals shall be under organic
management from the last third of
gestation.
(ii) [Reserved]
*
*
*
*
*
3. Section 205.606 is revised to read
as follows:
§ 205.606 Nonorganically produced
agricultural products allowed as ingredients
in or on processed products labeled as
organic or made with organic ingredients.
Only the following nonorganically
produced agricultural products may be
used as ingredients in or on processed
products labeled as ‘‘organic’’ or ‘‘made
with organic (specified ingredients or
food group(s)),’’ only in accordance with
any restrictions specified in this section,
and only when the product is not
commercially available in organic form.
(a) Cornstarch (native)
(b) Gums—water extracted only
(arabic, guar, locust bean, carob bean)
(c) Kelp—for use only as a thickener
and dietary supplement
(d) Lecithin—unbleached
(e) Pectin (high-methoxy)
Dated: April 24, 2006.
Lloyd C. Day,
Administrator, Agricultural Marketing
Service.
[FR Doc. 06–4006 Filed 4–25–06; 10:52 am]
BILLING CODE 3410–02–P
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34 CFR Part 76
State-Administered Programs
Department of Education.
Notice of proposed rulemaking.
AGENCY:
ACTION:
SUMMARY: The Secretary proposes to
amend the regulations in 34 CFR part 76
governing State reporting requirements.
States are required to submit their
performance reports, financial reports,
and any other required reports, in the
manner prescribed by the Secretary,
including through electronic
submission, if the Secretary has
obtained approval from the Office of
Management and Budget (OMB) under
the Paperwork Reduction Act of 1995
(PRA). The amendments proposed in
this notice would provide that: (1)
Failure to submit these reports in the
manner prescribed by the Secretary
constitutes a failure, under section 454
of the General Education Provisions Act,
20 U.S.C. 1234c, to comply substantially
with a requirement of law applicable to
the funds made available under the
program for which the reports are
submitted; and (2) if the Secretary
chooses to require submission of
information electronically, the Secretary
may establish a transition period during
which a State would not be required to
submit such information electronically
in the format prescribed by the
Secretary, if the State meets certain
requirements. The Secretary proposes
these changes to the regulations in 34
CFR part 76 to highlight that the U.S.
Department of Education (Department)
may require, through the PRA clearance
process, that States report certain
information electronically; and to
establish that the Department may take
administrative action against a State for
failure to submit reports in the manner
prescribed by the Secretary. The
proposed changes will facilitate the use
of the Department’s electronic EDFacts
data management system (EDFacts)
(Approved under OMB Control No.
1880–0541) for electronic submission of
certain reports and provide the
Department with more timely and
accessible data for accountability and
decision-making. The Department’s goal
in requiring electronic submission of
information is to reduce State reporting
burden significantly and to streamline
dozens of data collections currently
required by the Department.
DATES: We must receive your comments
on or before May 30, 2006.
ADDRESSES: Address all comments about
these proposed regulations to Bonny
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Long, U.S. Department of Education,
400 Maryland Avenue, SW., room
7C110, Washington, DC 20202. If you
prefer to send your comments through
the Internet, you may address them to
us at the U.S. Government Web site:
https://www.regulations.gov or you may
send your Internet comments to us at
the following address:
StateReporting@ed.gov.
You must include the term ‘‘State
Reporting/EDFacts Regulation’’ in the
subject line of your electronic message.
FOR FURTHER INFORMATION CONTACT:
Bonny Long. Telephone: (202) 401–0325
or via Internet: Bonny.Long@ed.gov.
If you use a telecommunications
device for the deaf (TDD), you may call
the Federal Relay Service (FRS) at 1–
800–877–8339.
Individuals with disabilities may
obtain this document in an alternative
format (e.g., Braille, large print,
audiotape, or computer diskette) on
request to the contact person listed
under FOR FURTHER INFORMATION
CONTACT.
SUPPLEMENTARY INFORMATION:
Invitation to Comment
We invite you to submit comments
regarding these proposed regulations.
To ensure that your comments have
maximum effect in developing the final
regulations, we urge you to identify
clearly the specific section or sections of
the proposed regulations that each of
your comments addresses and to arrange
your comments in the same order as the
proposed regulations. In particular, we
invite specific comments on the
Department’s approach to implementing
these regulations in regard to the
following issues:
• Whether the proposed two-year
transition period discussed in both the
background section of this preamble and
in § 76.720(c)(3) is sufficient; and
• Whether the Department’s intent to
require States to submit data
electronically through EDFacts
beginning with the 2006–07 school year,
discussed in the background section of
this preamble, is feasible and the effects
of this action for States.
We also invite you to assist us in
complying with the specific
requirements of Executive Order 12866
and its overall requirement of reducing
regulatory burden that might result from
these proposed regulations. Please let us
know of any further opportunities we
should provide to reduce potential costs
or increase potential benefits while
preserving the effective and efficient
administration of the Department’s
State-administered programs.
During and after the comment period,
you may inspect all public comments
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about these proposed regulations in
room 7C110, 400 Maryland Avenue,
SW., Washington, DC, between the
hours of 9 a.m. and 4 p.m., Eastern time,
Monday through Friday of each week
except Federal holidays.
Assistance to Individuals With
Disabilities in Reviewing the
Rulemaking Record
On request, we will supply an
appropriate aid, such as a reader or
print magnifier, to an individual with a
disability who needs assistance to
review the comments or other
documents in the public rulemaking
record for these proposed regulations. If
you want to schedule an appointment
for this type of aid, please contact the
person listed under FOR FURTHER
INFORMATION CONTACT.
Background
Complete, accurate, and reliable data
are essential for effective decisionmaking and for implementing the
requirements of the Nation’s education
laws. The Department’s ability to
collect, store, and manage education
data efficiently through electronic
means allows for easier submission by
States and reduces duplication of
collections and burdens on States. It
also facilitates the efficient use of data
for analysis by program officials and
other interested parties. Implementation
of the No Child Left Behind Act of 2001
(Pub. L. 107–110) (NCLB) requires that
educators have accurate and reliable
data to assess the Nation’s progress in
reaching the goal of ensuring that every
child achieves high academic standards.
These data help educators know where
they need to focus their attention in
order to improve the academic
achievement of all students.
In 2003, the Department launched the
Performance-Based Data Management
Initiative (PBDMI) to design an
elementary and secondary education
data collection system that would: (1)
Increase the analytical capabilities of
Federal, State, and local governments in
their efforts to improve outcomes for
students; (2) improve the quality,
timeliness, and accessibility of data; and
(3) reduce State reporting burden by
streamlining data collections and
eliminating duplication in reporting.
Through this initiative, the Department
developed the Education Data Exchange
Network (EDEN), a central repository
and electronic data collection system for
over 140 common data elements on
student achievement, school
characteristics, demographics, and
program financial information. States
have been submitting data to EDEN
voluntarily for the past two years. The
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Department is now increasing the EDEN
capabilities to include, in addition to
the Web-based interface that allows
States to submit data electronically into
EDEN, a capability for States,
Department staff, and, eventually, the
public, to query the database and
independently analyze the data, subject
to all applicable privacy protections for
disclosing statistical data. To signal the
increased capabilities of the system, the
Department is renaming EDEN and the
expanded Web-based interface
‘‘EDFacts.’’ Accordingly, unless
otherwise noted, for purposes of this
preamble, the expanded system will be
referred to as ‘‘EDFacts.’’
To date, submission of data through
EDFacts has been voluntary and,
therefore, regardless of whether States
have reported data through EDFacts,
they have been required to continue
reporting data through dozens of
existing data collections required by
Congress and administered by the
Department. These collections
frequently request duplicative data,
including, in particular, data on student
achievement and school demographics.
The Department has designed EDFacts
to obtain the most commonly collected
data elements so that States need only
report these data once, through a
centralized, electronic process. As
EDFacts is implemented completely, the
Department will retire dozens of
separate data collections, either in full
or in part, and reduce State reporting
burden significantly.
Nearly every State has submitted
electronically some portion of the data
that it eventually will be required to
submit to the Department through
EDFacts. However, EDFacts will only
reach its full potential in reducing
duplicative State reporting burden and
increasing the ability of the Department
and States to analyze and improve
student achievement if all States
provide their data through the system.
Beginning with the data from the
2006–07 school year, the Department
intends to obtain approval, pursuant to
the PRA, of an information collection
request that would require States to
submit electronically through EDFacts
the program and demographic
information that States currently are
required to report under separate and
overlapping collections. This data
collection request will eliminate the
need for States to submit reports under
current separate and overlapping
collection instruments because the
Department intends to discontinue any
existing data collections that require
submission of data that will be subject
to the EDFacts information collection
request.
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EDFacts has the capability to collect
data at the State, district, and school
levels and, for the 2006–2007 school
year the Department plans to require
States to submit electronically those
data, including district and school level
data, that States currently are required
to provide under existing data
collections. The Department will
continue to work with States to collect
the full range of data that can be
collected through EDFacts, including
data that are not currently subject to one
of the Department’s OMB-approved
information collection requests if
eventually approved through future
PRA information collection requests.
We plan to consolidate as many
information requests in EDFacts as
possible because it provides the best
opportunity for efficient and effective
data collection on key aspects of student
achievement and program performance.
In this regard, States will have the
option to provide, through EDFacts,
additional district- and school-level data
that they are not currently required to
provide under existing data collections.
For example, when preparing other
documents to submit to the Department
(e.g., a performance report), a State and
its subgrantees would be able to simply
reference school- and district-level data
already submitted through EDFacts
rather than undertake the burden of
reproducing the same data in multiple
documents. Once data are submitted to
EDFacts, ED would be able to
prepopulate collection forms so that
States would only have to provide the
data that does not overlap with the
EDFacts data. In general, the amount of
burden reduction available to States
would be correlated directly with the
amount of data they would provide
through EDFacts. If the voluntary
submission of district- and school-level
data to EDFacts proves successful, the
Department will consider expanding
EDFacts required reporting to cover
those more detailed data elements.
Accordingly, the Department welcomes
comments on a State’s capacity for, and
interest in, electronic reporting of
district- and school-level data through
EDFacts as an efficient means to
centralize reporting and reduce State
paperwork burden.
Two ways the Department will reduce
State burden and reporting duplication
in connection with EDFacts in the short
term are as follows:
(1) The Department plans to eliminate
existing collections that completely
overlap with data required to be
submitted through EDFacts. For
reporting 2005–06 school year data, the
Department is piloting this approach
with four data collections for
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Individuals with Disabilities Education
Act (IDEA) programs. Under this pilot,
States that submit specified EDFacts
data files that meet current program
reporting standards will be relieved of
submitting those data through other
means.
(2) For existing collections that
partially overlap with data required to
be submitted through EDFacts, the
Department will pre-populate those
collections with the data that States
submitted through EDFacts so that
States need not submit those data more
than once. The Department is piloting
this approach with the Consolidated
State Performance Report (CSPR)
(Approved under OMB Collection No.
1810–0614), required under section
9303 of the Elementary and Secondary
Education Act of 1965, as amended by
NCLB, for the 2004–05 school year data.
Under this pilot, States will access a
CSPR Web page that is pre-populated
with the EDFacts data they already have
submitted, decreasing significantly the
number of CSPR questions they must
answer.
Both the Department and each State
already have committed significant
resources to the Department’s data
management initiative; the Department
believes that requiring full participation
in EDFacts, while eliminating, either
completely or partially, the majority of
the Department’s existing annual
elementary and secondary education
data collections, is the only way to
ensure that those investments deliver
their intended benefits, including
reducing State reporting burden.
As part of the Department’s efforts to
streamline its data collection processes
and elevate the importance of State
compliance with reporting
requirements, the Department proposes
to amend the regulations in 34 CFR part
76. As more fully discussed in the
Significant Proposed Regulations
section of this notice, the proposed
regulations in §§ 76.720 and 76.722
would provide the Department with
enforcement capabilities that are not
available under the PRA alone. The
proposed regulations emphasize the
critical need for accurate data reporting
for the Department’s programs,
including those authorized under ESEA,
by making failure to report data under
a program administered by the
Secretary, in a manner prescribed by the
Secretary, a failure to comply
substantially with a requirement of law
applicable to the funds made available
under that program. This standard
comes from section 454 of the General
Education Provisions Act (20 U.S.C.
1234c) and gives the Secretary the
authority to take administrative action
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against a recipient that does not comply
with a program requirement.
Finally, in recognition of the fact that
some States may not be able to submit
data electronically in the manner
prescribed by the Secretary, e.g.,
through EDFacts, the Department
proposes to amend 34 CFR 76.720 to
provide the Secretary with discretion to
establish a transition period of up to two
years following the date a State
otherwise would be required to report
the data in the electronic format
prescribed by the Secretary (i.e., two
years following the first reporting
deadline established for the data
collection through the PRA process).
During this period, a State would not be
required to submit reports in the
electronic format prescribed by the
Secretary if the State meets certain
requirements. However, the Secretary
may require the State to submit data in
an alternative electronic format within
the State’s current capacity. This
provision would permit those States
that meet the requirements specified in
proposed 34 CFR 76.720(c)(3)(i) through
(iii) with a transition period, not to
exceed two years following the
reporting deadline for the data
collection, to comply with any
requirement to submit reports
electronically in the manner prescribed
by the Secretary. Regardless of whether
a State has been authorized a transition
period, the Secretary appreciates that
from time to time a State may have
temporary technical circumstances that
would prevent it from making timely
submission of data to EDFacts. Such a
situation would not trigger the Secretary
taking enforcement action against a
State.
Significant Proposed Regulations
Section 76.720 State Reporting
Requirements
Current § 76.720(a) states that § 76.720
applies to State reports required under
34 CFR 80.40 (Monitoring and reporting
of program performance) and 34 CFR
80.41 (Financial reporting).
Proposed § 76.720(a) would clarify
that § 76.720 applies to reports required
under 34 CFR 80.40 and 34 CFR 80.41,
as well as other State reports that the
Secretary requires under program
statutes or regulations if the reports are
approved by OMB under the PRA.
Pursuant to the PRA, the Department
must give interested parties an
opportunity to comment on, and must
obtain OMB approval for, any data
collection that requests data from more
than nine entities, unless the collection
meets one of the narrow exceptions to
the PRA.
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Proposed § 76.720(b)(1) and (2) would
not substantively change current
§ 76.720(b) and (c), which specify the
frequency with which States must
submit reports to the Secretary.
Proposed § 76.720(c)(1) would be
added to § 76.720 to clarify that States
must submit any reports required under
§ 76.720 in the manner prescribed by
the Secretary, including, if so
prescribed, through electronic
submission. Proposed § 76.720(c)(1) is
necessary because it states in very clear
terms that States must comply with the
Secretary’s requirements concerning the
manner in which reports are submitted
to the Department. The Secretary
establishes submission requirements for
Departmental data collection requests
through the PRA clearance process. The
language in proposed § 76.720(c)(1),
therefore, essentially states in a single
regulatory provision that States must
comply with requirements established
through the PRA clearance process.
Proposed § 76.720(c)(2) would be
added to § 76.720 to provide that a
State’s failure to submit reports in the
manner prescribed by the Secretary
(such as electronic submission)
constitutes a failure to comply
substantially with a requirement of law
applicable to the funds made available
under the program for which the reports
are submitted. Under section 454 of the
General Education Provisions Act, 20
U.S.C. 1234c, if the Secretary has reason
to believe that any recipient of funds
under an applicable program is failing
to comply substantially with any
requirement of law applicable to those
funds, the Secretary may take
administrative action to compel
compliance. Proposed § 76.720(c)(2) is
necessary because it establishes that
reporting requirements, such as
electronic submission of reports, are
substantial requirements of law such
that failure to comply with these
requirements would constitute a
violation of section 454 of the General
Education Provisions Act (20 U.S.C.
1234c). The Department proposes
§ 76.720(c)(2) because failure of a
recipient to comply with the
Department’s reporting requirements,
including submitting reports
electronically, harms the Federal
interest in establishing what the
Department deems is an efficient and
effective means of obtaining accurate,
reliable, and valid information on the
performance of the Department’s
programs and the success of States in
meeting their goals under such laws as
NCLB. The Federal interest would be
harmed because States would not be
using a system that was specifically
designed to reduce their burden and the
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Department would not be able to collect
and use data as efficiently and easily. In
addition, the data would not be in the
form and of the quality necessary for the
Department to assess program
effectiveness. Moreover, States that do
not comply with the Department’s
submission requirements would be
using funds to submit reports that do
not meet the Department’s needs for
accurate, reliable, and valid data.
Proposed § 76.720(c)(3) would be
added to § 76.720 to address difficulties
that States may have in reporting data
electronically in a manner prescribed by
the Secretary on the date States
otherwise would be required to report
the data electronically. Proposed
§ 76.720(c)(3) would provide that the
Secretary has the discretion to establish
a transition period of up to two years
following the date by which a State
otherwise would be required to report
the data in the electronic manner
prescribed by the Secretary. During this
transition period, a State would not be
required to comply with the electronic
submission requirement as prescribed
by the Secretary, such as the
requirement to submit electronic reports
through EDFacts, if the State submits
the following to the Secretary: (a)
Evidence satisfactory to the Secretary
that the State is unable to comply with
the electronic submission requirement
specified by the Secretary in the data
collection instrument on the first date
the State otherwise would be required to
report the data electronically; (b) any
information requested in the report
through an alternative means that is
deemed acceptable to the Secretary,
which may require submission in an
alternative electronic format that is
better suited to a State’s current
capacity; and (c) a plan showing how
the State would come into compliance
with the electronic submission and data
quality requirements specified in the
data collection instrument no later than
two years following the date by which
the State otherwise would be required to
submit the data in the electronic manner
prescribed by the Secretary.
The following example describes how
this regulatory provision would work.
Example: The Department obtains
approval for a new data collection
instrument through the PRA process
that would, for the first time, require
States to submit data in an electronic
format prescribed by the Secretary. The
first date that States would be required
to submit reports in this electronic
format would be November 1, 2007. A
State does not have the capacity to
submit reports in the electronic format
prescribed by the Secretary by
November 1, 2007. The State would
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submit to the Secretary the following:
(1) A request for a transition period, that
includes evidence that the State is not
able to comply with the electronic
submission requirements; (2) the
information requested in the report in
an alternative means that is acceptable
to the Secretary; and (3) a plan
explaining the steps the State will take
to submit the report in the electronic
format prescribed by the Secretary no
later than November 1, 2009.
The Department proposes
§ 76.720(c)(3) because, while it believes
requiring electronic submission of
reports ultimately will help reduce State
reporting burden and streamline the
Department’s data management system,
it recognizes that, at this time, States
have varying capabilities to report
information through electronic means.
Therefore, with respect to EDFacts,
the Department plans to use the
discretion established under proposed
§ 76.720(c)(3) to allow States that
demonstrate that they do not have the
capability to submit reports as specified
through EDFacts, a period of up to two
years following the dates the States
otherwise would be required to report
data through EDFacts (i.e., until the
reporting deadlines established for the
2008–09 school year data through the
PRA process) to phase in their
compliance with the reporting
requirements. For those States, the
Department plans to accept the required
data through alternative means
approved by the Department, which
may include alternative electronic
submissions, if those States provide the
Department with, and the Department
approves, a plan to submit the required
reports through EDFacts no later than
the reporting deadlines established for
the 2008–09 school year reports through
the PRA process.
With respect to proposed
§ 76.720(c)(3), the Department is
particularly interested in receiving
comment on: (a) Whether the proposed
two-year transition period to phase in
the electronic submission requirements
prescribed by the Secretary for EDFacts
is a sufficient period of time for States
that cannot comply with these
requirements to come into compliance;
and (b) what kind of alternative
electronic collection format would most
help States that cannot comply with the
requirement to submit reports
electronically through EDFacts.
Section 76.722
Requirements
Subgrantee Reporting
Current § 76.722 allows States to
require subgrantees to furnish reports to
the States that the States need to carry
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out their obligations under the program
for which the subgrantees receive funds.
Proposed § 76.722 would add
language to § 76.722 to allow States to
require subgrantees to submit, in the
format and manner designated by the
States, any reports that the States need
to comply with the requirements under
proposed § 76.720 and to carry out other
responsibilities under the program. The
proposed changes to current § 76.722
are intended to make it easier for States
to comply with the requirements under
proposed § 76.720 that the States submit
reports to the Department in the manner
prescribed by the Secretary.
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Executive Order 12866
1. Potential Costs and Benefits
The Department has determined that
these proposed regulations are a
significant regulatory action under
Executive Order 12866 and OMB has
reviewed them. In accordance with the
Executive Order, the Department has
also assessed the potential costs and
benefits of this regulatory action. The
potential costs associated with the
proposed regulations are those resulting
from statutory requirements and those
we have determined to be necessary for
administering the Department’s Stateadministered programs effectively and
efficiently. These regulations are
generally not expected to require undue
additional State resources because they
do not require States to report more data
than they currently are required to
report to the Department. However, a
potential new cost related to these
regulations is the acquisition of the
necessary technology for those States
that do not currently have the capability
to report information through electronic
means. The Department expects that
most States currently have this
technology and that this cost would
apply to very few (if any) States. For
those States to which the cost is
applicable, the cost is likely to be
minimal.
The potential benefits of these
proposed regulations have been
identified above, but briefly include:
more timely and accessible data for
accountability and decision-making;
reduced State reporting burden; and,
ultimately, improved implementation of
the requirements of the Nation’s
education laws.
In assessing the potential costs and
benefits of this regulatory action, we
have determined that the benefits would
justify the costs. The potential costs and
benefits of the Department’s information
collection requests are identified in
notices published in accordance with
the PRA.
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2. Clarity of the Regulations
Executive Order 12866 and the
Presidential memorandum on ‘‘Plain
Language in Government Writing’’
require each agency to write regulations
that are easy to understand.
The Secretary invites comments on
how to make these proposed regulations
easier to understand, including answers
to questions such as the following:
• Are the requirements in the
proposed regulations clearly stated?
• Do the proposed regulations contain
technical terms or other wording that
interferes with their clarity?
• Does the format of the proposed
regulations (grouping and order of
sections, use of headings, paragraphing,
etc.) aid or reduce their clarity?
• Could the description of the
proposed regulations in the
SUPPLEMENTARY INFORMATION section of
this preamble be more helpful in
making the proposed regulations easier
to understand? If so, how?
• What else could we do to make the
proposed regulations easier to
understand?
Send any comments that concern how
the Department could make these
proposed regulations easier to
understand to the person listed in the
ADDRESSES section of the preamble.
Regulatory Flexibility Act Certification
The Secretary certifies that these
proposed regulations would not have a
significant economic impact on a
substantial number of small entities.
Because the regulation would affect
only States and State agencies, the
regulations would not have an impact
on small entities.
Paperwork Reduction Act of 1995
These proposed regulations do not
contain any new information collection
requirements.
Intergovernmental Review
These proposed regulations affect
State-administered programs of the
Department that are subject to Executive
Order 12372 and the regulations in 34
CFR part 79. One of the objectives of the
Executive Order is to foster an
intergovernmental partnership and to
strengthen federalism. The Executive
order relies on processes developed by
State and local governments for
coordination and review of proposed
Federal financial assistance.
This document provides early
notification of the Department’s specific
plans and actions for these programs.
Assessment of Educational Impact
The Secretary requests comments on
whether these proposed regulations
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would 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 this site: https://www.ed.gov/news/
fedregister.
To use PDF you must have Adobe
Acrobat Reader, which is available free
at the site listed above. 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: https://www.gpoaccess.gov/nara/
index.html.
(Catalog of Federal Domestic Assistance
Number does not apply.)
List of Subjects in 34 CFR Part 76
Elementary and secondary education,
Reporting and recordkeeping
requirements.
Dated: April 24, 2006.
Margaret Spellings,
Secretary of Education.
For the reasons discussed in the
preamble, the Secretary proposes to
amend part 76 of title 34 of the Code of
Federal Regulations as follows:
PART 76—STATE-ADMINISTERED
PROGRAMS
1. The authority citation for part 76 is
revised to read as follows:
Authority: 20 U.S.C. 1221e–3 and 3474,
unless otherwise noted.
2. Section 76.720 is revised to read as
follows:
§ 76.720
State reporting requirements.
(a) This section applies to a State’s
reports required under 34 CFR 80.40
(Monitoring and reporting of program
performance) and 34 CFR 80.41
(Financial reporting), and other reports
required by the Secretary and approved
by the Office of Management and
Budget (OMB) under the Paperwork
Reduction Act of 1995, 44 U.S.C. 3501–
3520.
(b) A State must submit these reports
annually unless—
(1) The Secretary allows less frequent
reporting; or
(2) The Secretary requires a State to
report more frequently than annually,
E:\FR\FM\27APP1.SGM
27APP1
Federal Register / Vol. 71, No. 81 / Thursday, April 27, 2006 / Proposed Rules
including reporting under 34 CFR 80.12
(Special grant or subgrant conditions for
‘‘high-risk’’ grantees) or 34 CFR 80.20
(Standards for financial management
systems).
(c)(1) A State must submit these
reports in the manner prescribed by the
Secretary, including submitting any of
these reports electronically and at the
quality level specified in the data
collection instrument.
(2) Failure by a State to submit reports
in accordance with paragraph (c)(1) of
this section constitutes a failure, under
section 454 of the General Education
Provisions Act, 20 U.S.C. 1234c, to
comply substantially with a requirement
of law applicable to the funds made
available under that program.
(3) For reports that the Secretary
requires to be submitted in an electronic
manner, the Secretary may establish a
transition period of up to two years
following the date the State otherwise
would be required to report the data in
the electronic manner, during which
time a State will not be required to
comply with that specific electronic
submission requirement, if the State
submits to the Secretary—
(i) Evidence satisfactory to the
Secretary that the State will not be able
to comply with the electronic
submission requirement specified by the
Secretary in the data collection
instrument on the first date the State
otherwise would be required to report
the data electronically;
(ii) Information requested in the
report through an alternative means that
is acceptable to the Secretary, such as
through an alternative electronic means;
and
(iii) A plan for submitting the reports
in the required electronic manner and at
the level of quality specified in the data
collection instrument no later than the
date two years after the first date the
State otherwise would be required to
report the data in the electronic manner
prescribed by the Secretary.
(Authority: 20 U.S.C. 1221e–3, 1231a, and
3474)
3. Section 76.722 is revised to read as
follows:
rmajette on PROD1PC67 with PROPOSALS1
§ 76.722 Subgrantee reporting
requirements.
A State may require a subgrantee to
submit reports in a manner and format
that assists the State in complying with
the requirements under 34 CFR 76.720
and in carrying out other
responsibilities under the program.
(Authority: 20 U.S.C. 1221e–3, 1231a, and
3474)
[FR Doc. E6–6355 Filed 4–26–06; 8:45 am]
BILLING CODE 4000–01–P
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LIBRARY OF CONGRESS
Copyright Office
37 CFR Part 201
[Docket No. 2006–2]
Electronic Payment of Royalties
Copyright Office, Library of
Congress.
ACTION: Notice of proposed rulemaking.
AGENCY:
SUMMARY: The Copyright Office is
proposing to amend its rules governing
the submission of royalty fees to the
Copyright Office to require such
payments to be made by electronic
funds transfer.
DATES: Written comments are due June
12, 2006. Reply comments are due July
11, 2006.
ADDRESSES: If hand delivered by a
private party, an original and five copies
of a comment or reply comment should
be brought to Room LM–401 of the
James Madison Memorial Building
between 8:30 a.m. and 5 p.m. and the
envelope should be addressed as
follows: Office of the General Counsel,
U.S. Copyright Office, James Madison
Memorial Building, Room LM–401, 101
Independence Avenue, SE, Washington,
DC 20559–6000. If delivered by a
commercial courier, an original and five
copies of a comment or reply comment
must be delivered to the Congressional
Courier Acceptance Site located at 2nd
and D Streets, NE, between 8:30 a.m.
and 4 p.m. The envelope should be
addressed as follows: Office of the
General Counsel, Room LM–403, James
Madison Memorial Building, 101
Independence Avenue, SE, Washington,
DC. If sent by mail (including overnight
delivery using U.S. Postal Service
Express Mail), an original and five
copies of a comment or reply comment
should be addressed to U.S. Copyright
Office, Copyright GC/I&R, P.O. Box
70400, Southwest Station, Washington,
DC 20024. Comments and reply
comments may not be delivered by
means of overnight delivery services
such as Federal Express, United Parcel
Service, etc., due to delays in processing
receipt of such deliveries.
FOR FURTHER INFORMATION CONTACT:
Tanya M. Sandros, Associate General
Counsel, Copyright GC/I&R, P.O. Box
70400, Southwest Station, Washington,
DC 20024. Telephone: (202) 707–8380.
Telefax: (202) 707–8366.
SUPPLEMENTARY INFORMATION: Cable
systems and satellite carriers that
retransmit broadcast signals in
accordance with the provisions
governing the statutory licenses set forth
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24829
in sections 111 and 119 of the Copyright
Act, title 17 of the United States Code,
respectively, are required to pay royalty
fees to the Copyright Office. The
Copyright Office also receives statutory
fees from manufacturers and importers
of digital audio recording devices and
media who distribute these products in
the United States. 17 U.S.C. chapter 10.
Payments made under the cable and
satellite carrier statutory licenses are
remitted semiannually to the Copyright
Office. Payments made under the Audio
Home Recording Act of 1992 are made
quarterly. The Copyright Office invests
the royalties in United States Treasury
securities pending distribution of these
funds to those copyright owners who
are entitled to receive a share of the fees.
The current Copyright Office
regulations permit payment by three
different methods: electronic funds
transfer (‘‘EFT’’), certified or cashier’s
check, or money order. 37 CFR 201.11
(f), (g) and (h); 37 CFR 201.17 (i) and (j);
and 37 CFR 201.28 (e). A mechanism for
electronic payments was added in 1991,
since it was thought that use of
electronic payments would facilitate the
process and lessen the administrative
burden on the Office and on the filer.
See 56 FR 29588 (June 28, 1991). An
electronic payment option provides
advantages to the payor and the
Copyright Office as the agency
responsible for the collection and
distribution of the royalty fees. EFTs can
be transmitted either as an Automated
Clearing House (‘‘ACH’’) credit or a
Fedwire (‘‘Wire’’) transaction depending
upon how you arrange the transfer
through your financial institution, or as
an ACH debit by using the U. S.
Department of the Treasury, Financial
Management Service’s web based
remittance system, Pay.gov. In an ACH
credit, your financial institution sends
the remittance to the U. S. Treasury;
whereas, in an ACH debit, you authorize
the U. S. Treasury to take the funds out
of the account at your financial
institution.
Use of an electronic payment option
offers specific advantages over payment
via a check or money order. First, the
remitters gain more time to transfer
funds without fear of incurring interest
assessments for late payments. In the
case of a Wire transaction, the remitter
may make a payment up until and
including the due date (provided the
financial institution is open that day
and is still processing wire transfers),
whereas an ACH transaction requires
more time. It must be completed one or
two banking days before the due date to
ensure interest for late payments are not
assessed. Second, electronic payments
avoid the problems associated with lost
E:\FR\FM\27APP1.SGM
27APP1
]]>Agencies
[Federal Register Volume 71, Number 81 (Thursday, April 27, 2006)]
[Proposed Rules]
[Pages 24824-24829]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E6-6355]
=======================================================================
-----------------------------------------------------------------------
DEPARTMENT OF EDUCATION
34 CFR Part 76
RIN 1890-AA13
State-Administered Programs
AGENCY: Department of Education.
ACTION: Notice of proposed rulemaking.
-----------------------------------------------------------------------
SUMMARY: The Secretary proposes to amend the regulations in 34 CFR part
76 governing State reporting requirements. States are required to
submit their performance reports, financial reports, and any other
required reports, in the manner prescribed by the Secretary, including
through electronic submission, if the Secretary has obtained approval
from the Office of Management and Budget (OMB) under the Paperwork
Reduction Act of 1995 (PRA). The amendments proposed in this notice
would provide that: (1) Failure to submit these reports in the manner
prescribed by the Secretary constitutes a failure, under section 454 of
the General Education Provisions Act, 20 U.S.C. 1234c, to comply
substantially with a requirement of law applicable to the funds made
available under the program for which the reports are submitted; and
(2) if the Secretary chooses to require submission of information
electronically, the Secretary may establish a transition period during
which a State would not be required to submit such information
electronically in the format prescribed by the Secretary, if the State
meets certain requirements. The Secretary proposes these changes to the
regulations in 34 CFR part 76 to highlight that the U.S. Department of
Education (Department) may require, through the PRA clearance process,
that States report certain information electronically; and to establish
that the Department may take administrative action against a State for
failure to submit reports in the manner prescribed by the Secretary.
The proposed changes will facilitate the use of the Department's
electronic EDFacts data management system (EDFacts) (Approved under OMB
Control No. 1880-0541) for electronic submission of certain reports and
provide the Department with more timely and accessible data for
accountability and decision-making. The Department's goal in requiring
electronic submission of information is to reduce State reporting
burden significantly and to streamline dozens of data collections
currently required by the Department.
DATES: We must receive your comments on or before May 30, 2006.
ADDRESSES: Address all comments about these proposed regulations to
Bonny
[[Page 24825]]
Long, U.S. Department of Education, 400 Maryland Avenue, SW., room
7C110, Washington, DC 20202. If you prefer to send your comments
through the Internet, you may address them to us at the U.S. Government
Web site: https://www.regulations.gov or you may send your Internet
comments to us at the following address: StateReporting@ed.gov.
You must include the term ``State Reporting/EDFacts Regulation'' in
the subject line of your electronic message.
FOR FURTHER INFORMATION CONTACT: Bonny Long. Telephone: (202) 401-0325
or via Internet: Bonny.Long@ed.gov.
If you use a telecommunications device for the deaf (TDD), you may
call the Federal Relay Service (FRS) at 1-800-877-8339.
Individuals with disabilities may obtain this document in an
alternative format (e.g., Braille, large print, audiotape, or computer
diskette) on request to the contact person listed under FOR FURTHER
INFORMATION CONTACT.
SUPPLEMENTARY INFORMATION:
Invitation to Comment
We invite you to submit comments regarding these proposed
regulations. To ensure that your comments have maximum effect in
developing the final regulations, we urge you to identify clearly the
specific section or sections of the proposed regulations that each of
your comments addresses and to arrange your comments in the same order
as the proposed regulations. In particular, we invite specific comments
on the Department's approach to implementing these regulations in
regard to the following issues:
Whether the proposed two-year transition period discussed
in both the background section of this preamble and in Sec.
76.720(c)(3) is sufficient; and
Whether the Department's intent to require States to
submit data electronically through EDFacts beginning with the 2006-07
school year, discussed in the background section of this preamble, is
feasible and the effects of this action for States.
We also invite you to assist us in complying with the specific
requirements of Executive Order 12866 and its overall requirement of
reducing regulatory burden that might result from these proposed
regulations. Please let us know of any further opportunities we should
provide to reduce potential costs or increase potential benefits while
preserving the effective and efficient administration of the
Department's State-administered programs.
During and after the comment period, you may inspect all public
comments about these proposed regulations in room 7C110, 400 Maryland
Avenue, SW., Washington, DC, between the hours of 9 a.m. and 4 p.m.,
Eastern time, Monday through Friday of each week except Federal
holidays.
Assistance to Individuals With Disabilities in Reviewing the Rulemaking
Record
On request, we will supply an appropriate aid, such as a reader or
print magnifier, to an individual with a disability who needs
assistance to review the comments or other documents in the public
rulemaking record for these proposed regulations. If you want to
schedule an appointment for this type of aid, please contact the person
listed under FOR FURTHER INFORMATION CONTACT.
Background
Complete, accurate, and reliable data are essential for effective
decision-making and for implementing the requirements of the Nation's
education laws. The Department's ability to collect, store, and manage
education data efficiently through electronic means allows for easier
submission by States and reduces duplication of collections and burdens
on States. It also facilitates the efficient use of data for analysis
by program officials and other interested parties. Implementation of
the No Child Left Behind Act of 2001 (Pub. L. 107-110) (NCLB) requires
that educators have accurate and reliable data to assess the Nation's
progress in reaching the goal of ensuring that every child achieves
high academic standards. These data help educators know where they need
to focus their attention in order to improve the academic achievement
of all students.
In 2003, the Department launched the Performance-Based Data
Management Initiative (PBDMI) to design an elementary and secondary
education data collection system that would: (1) Increase the
analytical capabilities of Federal, State, and local governments in
their efforts to improve outcomes for students; (2) improve the
quality, timeliness, and accessibility of data; and (3) reduce State
reporting burden by streamlining data collections and eliminating
duplication in reporting. Through this initiative, the Department
developed the Education Data Exchange Network (EDEN), a central
repository and electronic data collection system for over 140 common
data elements on student achievement, school characteristics,
demographics, and program financial information. States have been
submitting data to EDEN voluntarily for the past two years. The
Department is now increasing the EDEN capabilities to include, in
addition to the Web-based interface that allows States to submit data
electronically into EDEN, a capability for States, Department staff,
and, eventually, the public, to query the database and independently
analyze the data, subject to all applicable privacy protections for
disclosing statistical data. To signal the increased capabilities of
the system, the Department is renaming EDEN and the expanded Web-based
interface ``EDFacts.'' Accordingly, unless otherwise noted, for
purposes of this preamble, the expanded system will be referred to as
``EDFacts.''
To date, submission of data through EDFacts has been voluntary and,
therefore, regardless of whether States have reported data through
EDFacts, they have been required to continue reporting data through
dozens of existing data collections required by Congress and
administered by the Department. These collections frequently request
duplicative data, including, in particular, data on student achievement
and school demographics. The Department has designed EDFacts to obtain
the most commonly collected data elements so that States need only
report these data once, through a centralized, electronic process. As
EDFacts is implemented completely, the Department will retire dozens of
separate data collections, either in full or in part, and reduce State
reporting burden significantly.
Nearly every State has submitted electronically some portion of the
data that it eventually will be required to submit to the Department
through EDFacts. However, EDFacts will only reach its full potential in
reducing duplicative State reporting burden and increasing the ability
of the Department and States to analyze and improve student achievement
if all States provide their data through the system.
Beginning with the data from the 2006-07 school year, the
Department intends to obtain approval, pursuant to the PRA, of an
information collection request that would require States to submit
electronically through EDFacts the program and demographic information
that States currently are required to report under separate and
overlapping collections. This data collection request will eliminate
the need for States to submit reports under current separate and
overlapping collection instruments because the Department intends to
discontinue any existing data collections that require submission of
data that will be subject to the EDFacts information collection
request.
[[Page 24826]]
EDFacts has the capability to collect data at the State, district,
and school levels and, for the 2006-2007 school year the Department
plans to require States to submit electronically those data, including
district and school level data, that States currently are required to
provide under existing data collections. The Department will continue
to work with States to collect the full range of data that can be
collected through EDFacts, including data that are not currently
subject to one of the Department's OMB-approved information collection
requests if eventually approved through future PRA information
collection requests. We plan to consolidate as many information
requests in EDFacts as possible because it provides the best
opportunity for efficient and effective data collection on key aspects
of student achievement and program performance. In this regard, States
will have the option to provide, through EDFacts, additional district-
and school-level data that they are not currently required to provide
under existing data collections. For example, when preparing other
documents to submit to the Department (e.g., a performance report), a
State and its subgrantees would be able to simply reference school- and
district-level data already submitted through EDFacts rather than
undertake the burden of reproducing the same data in multiple
documents. Once data are submitted to EDFacts, ED would be able to
prepopulate collection forms so that States would only have to provide
the data that does not overlap with the EDFacts data. In general, the
amount of burden reduction available to States would be correlated
directly with the amount of data they would provide through EDFacts. If
the voluntary submission of district- and school-level data to EDFacts
proves successful, the Department will consider expanding EDFacts
required reporting to cover those more detailed data elements.
Accordingly, the Department welcomes comments on a State's capacity
for, and interest in, electronic reporting of district- and school-
level data through EDFacts as an efficient means to centralize
reporting and reduce State paperwork burden.
Two ways the Department will reduce State burden and reporting
duplication in connection with EDFacts in the short term are as
follows:
(1) The Department plans to eliminate existing collections that
completely overlap with data required to be submitted through EDFacts.
For reporting 2005-06 school year data, the Department is piloting this
approach with four data collections for Individuals with Disabilities
Education Act (IDEA) programs. Under this pilot, States that submit
specified EDFacts data files that meet current program reporting
standards will be relieved of submitting those data through other
means.
(2) For existing collections that partially overlap with data
required to be submitted through EDFacts, the Department will pre-
populate those collections with the data that States submitted through
EDFacts so that States need not submit those data more than once. The
Department is piloting this approach with the Consolidated State
Performance Report (CSPR) (Approved under OMB Collection No. 1810-
0614), required under section 9303 of the Elementary and Secondary
Education Act of 1965, as amended by NCLB, for the 2004-05 school year
data. Under this pilot, States will access a CSPR Web page that is pre-
populated with the EDFacts data they already have submitted, decreasing
significantly the number of CSPR questions they must answer.
Both the Department and each State already have committed
significant resources to the Department's data management initiative;
the Department believes that requiring full participation in EDFacts,
while eliminating, either completely or partially, the majority of the
Department's existing annual elementary and secondary education data
collections, is the only way to ensure that those investments deliver
their intended benefits, including reducing State reporting burden.
As part of the Department's efforts to streamline its data
collection processes and elevate the importance of State compliance
with reporting requirements, the Department proposes to amend the
regulations in 34 CFR part 76. As more fully discussed in the
Significant Proposed Regulations section of this notice, the proposed
regulations in Sec. Sec. 76.720 and 76.722 would provide the
Department with enforcement capabilities that are not available under
the PRA alone. The proposed regulations emphasize the critical need for
accurate data reporting for the Department's programs, including those
authorized under ESEA, by making failure to report data under a program
administered by the Secretary, in a manner prescribed by the Secretary,
a failure to comply substantially with a requirement of law applicable
to the funds made available under that program. This standard comes
from section 454 of the General Education Provisions Act (20 U.S.C.
1234c) and gives the Secretary the authority to take administrative
action against a recipient that does not comply with a program
requirement.
Finally, in recognition of the fact that some States may not be
able to submit data electronically in the manner prescribed by the
Secretary, e.g., through EDFacts, the Department proposes to amend 34
CFR 76.720 to provide the Secretary with discretion to establish a
transition period of up to two years following the date a State
otherwise would be required to report the data in the electronic format
prescribed by the Secretary (i.e., two years following the first
reporting deadline established for the data collection through the PRA
process). During this period, a State would not be required to submit
reports in the electronic format prescribed by the Secretary if the
State meets certain requirements. However, the Secretary may require
the State to submit data in an alternative electronic format within the
State's current capacity. This provision would permit those States that
meet the requirements specified in proposed 34 CFR 76.720(c)(3)(i)
through (iii) with a transition period, not to exceed two years
following the reporting deadline for the data collection, to comply
with any requirement to submit reports electronically in the manner
prescribed by the Secretary. Regardless of whether a State has been
authorized a transition period, the Secretary appreciates that from
time to time a State may have temporary technical circumstances that
would prevent it from making timely submission of data to EDFacts. Such
a situation would not trigger the Secretary taking enforcement action
against a State.
Significant Proposed Regulations
Section 76.720 State Reporting Requirements
Current Sec. 76.720(a) states that Sec. 76.720 applies to State
reports required under 34 CFR 80.40 (Monitoring and reporting of
program performance) and 34 CFR 80.41 (Financial reporting).
Proposed Sec. 76.720(a) would clarify that Sec. 76.720 applies to
reports required under 34 CFR 80.40 and 34 CFR 80.41, as well as other
State reports that the Secretary requires under program statutes or
regulations if the reports are approved by OMB under the PRA. Pursuant
to the PRA, the Department must give interested parties an opportunity
to comment on, and must obtain OMB approval for, any data collection
that requests data from more than nine entities, unless the collection
meets one of the narrow exceptions to the PRA.
[[Page 24827]]
Proposed Sec. 76.720(b)(1) and (2) would not substantively change
current Sec. 76.720(b) and (c), which specify the frequency with which
States must submit reports to the Secretary.
Proposed Sec. 76.720(c)(1) would be added to Sec. 76.720 to
clarify that States must submit any reports required under Sec. 76.720
in the manner prescribed by the Secretary, including, if so prescribed,
through electronic submission. Proposed Sec. 76.720(c)(1) is necessary
because it states in very clear terms that States must comply with the
Secretary's requirements concerning the manner in which reports are
submitted to the Department. The Secretary establishes submission
requirements for Departmental data collection requests through the PRA
clearance process. The language in proposed Sec. 76.720(c)(1),
therefore, essentially states in a single regulatory provision that
States must comply with requirements established through the PRA
clearance process.
Proposed Sec. 76.720(c)(2) would be added to Sec. 76.720 to
provide that a State's failure to submit reports in the manner
prescribed by the Secretary (such as electronic submission) constitutes
a failure to comply substantially with a requirement of law applicable
to the funds made available under the program for which the reports are
submitted. Under section 454 of the General Education Provisions Act,
20 U.S.C. 1234c, if the Secretary has reason to believe that any
recipient of funds under an applicable program is failing to comply
substantially with any requirement of law applicable to those funds,
the Secretary may take administrative action to compel compliance.
Proposed Sec. 76.720(c)(2) is necessary because it establishes that
reporting requirements, such as electronic submission of reports, are
substantial requirements of law such that failure to comply with these
requirements would constitute a violation of section 454 of the General
Education Provisions Act (20 U.S.C. 1234c). The Department proposes
Sec. 76.720(c)(2) because failure of a recipient to comply with the
Department's reporting requirements, including submitting reports
electronically, harms the Federal interest in establishing what the
Department deems is an efficient and effective means of obtaining
accurate, reliable, and valid information on the performance of the
Department's programs and the success of States in meeting their goals
under such laws as NCLB. The Federal interest would be harmed because
States would not be using a system that was specifically designed to
reduce their burden and the Department would not be able to collect and
use data as efficiently and easily. In addition, the data would not be
in the form and of the quality necessary for the Department to assess
program effectiveness. Moreover, States that do not comply with the
Department's submission requirements would be using funds to submit
reports that do not meet the Department's needs for accurate, reliable,
and valid data.
Proposed Sec. 76.720(c)(3) would be added to Sec. 76.720 to
address difficulties that States may have in reporting data
electronically in a manner prescribed by the Secretary on the date
States otherwise would be required to report the data electronically.
Proposed Sec. 76.720(c)(3) would provide that the Secretary has the
discretion to establish a transition period of up to two years
following the date by which a State otherwise would be required to
report the data in the electronic manner prescribed by the Secretary.
During this transition period, a State would not be required to comply
with the electronic submission requirement as prescribed by the
Secretary, such as the requirement to submit electronic reports through
EDFacts, if the State submits the following to the Secretary: (a)
Evidence satisfactory to the Secretary that the State is unable to
comply with the electronic submission requirement specified by the
Secretary in the data collection instrument on the first date the State
otherwise would be required to report the data electronically; (b) any
information requested in the report through an alternative means that
is deemed acceptable to the Secretary, which may require submission in
an alternative electronic format that is better suited to a State's
current capacity; and (c) a plan showing how the State would come into
compliance with the electronic submission and data quality requirements
specified in the data collection instrument no later than two years
following the date by which the State otherwise would be required to
submit the data in the electronic manner prescribed by the Secretary.
The following example describes how this regulatory provision would
work.
Example: The Department obtains approval for a new data collection
instrument through the PRA process that would, for the first time,
require States to submit data in an electronic format prescribed by the
Secretary. The first date that States would be required to submit
reports in this electronic format would be November 1, 2007. A State
does not have the capacity to submit reports in the electronic format
prescribed by the Secretary by November 1, 2007. The State would submit
to the Secretary the following: (1) A request for a transition period,
that includes evidence that the State is not able to comply with the
electronic submission requirements; (2) the information requested in
the report in an alternative means that is acceptable to the Secretary;
and (3) a plan explaining the steps the State will take to submit the
report in the electronic format prescribed by the Secretary no later
than November 1, 2009.
The Department proposes Sec. 76.720(c)(3) because, while it
believes requiring electronic submission of reports ultimately will
help reduce State reporting burden and streamline the Department's data
management system, it recognizes that, at this time, States have
varying capabilities to report information through electronic means.
Therefore, with respect to EDFacts, the Department plans to use the
discretion established under proposed Sec. 76.720(c)(3) to allow
States that demonstrate that they do not have the capability to submit
reports as specified through EDFacts, a period of up to two years
following the dates the States otherwise would be required to report
data through EDFacts (i.e., until the reporting deadlines established
for the 2008-09 school year data through the PRA process) to phase in
their compliance with the reporting requirements. For those States, the
Department plans to accept the required data through alternative means
approved by the Department, which may include alternative electronic
submissions, if those States provide the Department with, and the
Department approves, a plan to submit the required reports through
EDFacts no later than the reporting deadlines established for the 2008-
09 school year reports through the PRA process.
With respect to proposed Sec. 76.720(c)(3), the Department is
particularly interested in receiving comment on: (a) Whether the
proposed two-year transition period to phase in the electronic
submission requirements prescribed by the Secretary for EDFacts is a
sufficient period of time for States that cannot comply with these
requirements to come into compliance; and (b) what kind of alternative
electronic collection format would most help States that cannot comply
with the requirement to submit reports electronically through EDFacts.
Section 76.722 Subgrantee Reporting Requirements
Current Sec. 76.722 allows States to require subgrantees to
furnish reports to the States that the States need to carry
[[Page 24828]]
out their obligations under the program for which the subgrantees
receive funds.
Proposed Sec. 76.722 would add language to Sec. 76.722 to allow
States to require subgrantees to submit, in the format and manner
designated by the States, any reports that the States need to comply
with the requirements under proposed Sec. 76.720 and to carry out
other responsibilities under the program. The proposed changes to
current Sec. 76.722 are intended to make it easier for States to
comply with the requirements under proposed Sec. 76.720 that the
States submit reports to the Department in the manner prescribed by the
Secretary.
Executive Order 12866
1. Potential Costs and Benefits
The Department has determined that these proposed regulations are a
significant regulatory action under Executive Order 12866 and OMB has
reviewed them. In accordance with the Executive Order, the Department
has also assessed the potential costs and benefits of this regulatory
action. The potential costs associated with the proposed regulations
are those resulting from statutory requirements and those we have
determined to be necessary for administering the Department's State-
administered programs effectively and efficiently. These regulations
are generally not expected to require undue additional State resources
because they do not require States to report more data than they
currently are required to report to the Department. However, a
potential new cost related to these regulations is the acquisition of
the necessary technology for those States that do not currently have
the capability to report information through electronic means. The
Department expects that most States currently have this technology and
that this cost would apply to very few (if any) States. For those
States to which the cost is applicable, the cost is likely to be
minimal.
The potential benefits of these proposed regulations have been
identified above, but briefly include: more timely and accessible data
for accountability and decision-making; reduced State reporting burden;
and, ultimately, improved implementation of the requirements of the
Nation's education laws.
In assessing the potential costs and benefits of this regulatory
action, we have determined that the benefits would justify the costs.
The potential costs and benefits of the Department's information
collection requests are identified in notices published in accordance
with the PRA.
2. Clarity of the Regulations
Executive Order 12866 and the Presidential memorandum on ``Plain
Language in Government Writing'' require each agency to write
regulations that are easy to understand.
The Secretary invites comments on how to make these proposed
regulations easier to understand, including answers to questions such
as the following:
Are the requirements in the proposed regulations clearly
stated?
Do the proposed regulations contain technical terms or
other wording that interferes with their clarity?
Does the format of the proposed regulations (grouping and
order of sections, use of headings, paragraphing, etc.) aid or reduce
their clarity?
Could the description of the proposed regulations in the
SUPPLEMENTARY INFORMATION section of this preamble be more helpful in
making the proposed regulations easier to understand? If so, how?
What else could we do to make the proposed regulations
easier to understand?
Send any comments that concern how the Department could make these
proposed regulations easier to understand to the person listed in the
ADDRESSES section of the preamble.
Regulatory Flexibility Act Certification
The Secretary certifies that these proposed regulations would not
have a significant economic impact on a substantial number of small
entities. Because the regulation would affect only States and State
agencies, the regulations would not have an impact on small entities.
Paperwork Reduction Act of 1995
These proposed regulations do not contain any new information
collection requirements.
Intergovernmental Review
These proposed regulations affect State-administered programs of
the Department that are subject to Executive Order 12372 and the
regulations in 34 CFR part 79. One of the objectives of the Executive
Order is to foster an intergovernmental partnership and to strengthen
federalism. The Executive order relies on processes developed by State
and local governments for coordination and review of proposed Federal
financial assistance.
This document provides early notification of the Department's
specific plans and actions for these programs.
Assessment of Educational Impact
The Secretary requests comments on whether these proposed
regulations would 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 this site: https://
www.ed.gov/news/fedregister.
To use PDF you must have Adobe Acrobat Reader, which is available
free at the site listed above. 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: https://www.gpoaccess.gov/
nara/.
(Catalog of Federal Domestic Assistance Number does not apply.)
List of Subjects in 34 CFR Part 76
Elementary and secondary education, Reporting and recordkeeping
requirements.
Dated: April 24, 2006.
Margaret Spellings,
Secretary of Education.
For the reasons discussed in the preamble, the Secretary proposes
to amend part 76 of title 34 of the Code of Federal Regulations as
follows:
PART 76--STATE-ADMINISTERED PROGRAMS
1. The authority citation for part 76 is revised to read as
follows:
Authority: 20 U.S.C. 1221e-3 and 3474, unless otherwise noted.
2. Section 76.720 is revised to read as follows:
Sec. 76.720 State reporting requirements.
(a) This section applies to a State's reports required under 34 CFR
80.40 (Monitoring and reporting of program performance) and 34 CFR
80.41 (Financial reporting), and other reports required by the
Secretary and approved by the Office of Management and Budget (OMB)
under the Paperwork Reduction Act of 1995, 44 U.S.C. 3501-3520.
(b) A State must submit these reports annually unless--
(1) The Secretary allows less frequent reporting; or
(2) The Secretary requires a State to report more frequently than
annually,
[[Page 24829]]
including reporting under 34 CFR 80.12 (Special grant or subgrant
conditions for ``high-risk'' grantees) or 34 CFR 80.20 (Standards for
financial management systems).
(c)(1) A State must submit these reports in the manner prescribed
by the Secretary, including submitting any of these reports
electronically and at the quality level specified in the data
collection instrument.
(2) Failure by a State to submit reports in accordance with
paragraph (c)(1) of this section constitutes a failure, under section
454 of the General Education Provisions Act, 20 U.S.C. 1234c, to comply
substantially with a requirement of law applicable to the funds made
available under that program.
(3) For reports that the Secretary requires to be submitted in an
electronic manner, the Secretary may establish a transition period of
up to two years following the date the State otherwise would be
required to report the data in the electronic manner, during which time
a State will not be required to comply with that specific electronic
submission requirement, if the State submits to the Secretary--
(i) Evidence satisfactory to the Secretary that the State will not
be able to comply with the electronic submission requirement specified
by the Secretary in the data collection instrument on the first date
the State otherwise would be required to report the data
electronically;
(ii) Information requested in the report through an alternative
means that is acceptable to the Secretary, such as through an
alternative electronic means; and
(iii) A plan for submitting the reports in the required electronic
manner and at the level of quality specified in the data collection
instrument no later than the date two years after the first date the
State otherwise would be required to report the data in the electronic
manner prescribed by the Secretary.
(Authority: 20 U.S.C. 1221e-3, 1231a, and 3474)
3. Section 76.722 is revised to read as follows:
Sec. 76.722 Subgrantee reporting requirements.
A State may require a subgrantee to submit reports in a manner and
format that assists the State in complying with the requirements under
34 CFR 76.720 and in carrying out other responsibilities under the
program.
(Authority: 20 U.S.C. 1221e-3, 1231a, and 3474)
[FR Doc. E6-6355 Filed 4-26-06; 8:45 am]
BILLING CODE 4000-01-P
