[Federal Register Volume 63, Number 121 (Wednesday, June 24, 1998)] [Rules and Regulations] [Pages 34328-34330] From the Federal Register Online via the Government Publishing Office [www.gpo.gov] [FR Doc No: 98-16826] ----------------------------------------------------------------------- DEPARTMENT OF HEALTH AND HUMAN SERVICES Administration for Children and Families 45 CFR Part 1302 RIN 0970-AB52 Head Start Program AGENCY: Administration on Children, Youth and Families (ACYF), Administration for Children and Families (ACF), HHS. ACTION: Final rule. ----------------------------------------------------------------------- SUMMARY: The Administration on Children, Youth and Families is issuing this final rule to amend its procedures regarding replacement of Indian tribal grantees. The change would add provisions to implement a new statutory provision that allows Indian tribes which are Head Start grantees to identify an agency, and request that the agency be designated by the Department as an alternative grantee, when the grantee is terminated or denied refunding. EFFECTIVE DATES: The effective date of this final rule is July 24, 1998. FOR FURTHER INFORMATION CONTACT: Douglas Klafehn, Deputy Associate Commissioner, Head Start Bureau, Administration for Children, Youth and Families, P.O. Box 1182, Washington, D.C. 20013; (202) 205-8572. SUPPLEMENTARY INFORMATION: I. Program Purpose Head Start is authorized under the Head Start Act (42 U.S.C. 9801 et seq.). It is a national program providing comprehensive developmental services primarily to low-income preschool children, age three to the age of compulsory school attendance, and their families. In addition, Section 645A of the Head Start Act provides authority to fund programs for families with infants and toddlers, known as Early Head Start programs. To help enrolled children achieve their full potential, Head Start programs provide comprehensive health, nutritional, educational, social and other services. Additionally, Head Start programs are required to provide for the direct participation of the parents of enrolled children in the development, conduct, and direction of local programs. Parents also receive training and education to foster their understanding of and involvement in the development of their children. In fiscal year 1997, Head Start served 793,809 children through a network of over 2,000 grantees and delegate agencies. While Head Start is intended to serve primarily children whose families have incomes at or below the poverty line, or who receive public assistance, the Head Start Act and implementing regulations permit up to 10 percent (and more for Indian tribes under certain circumstances) of the children in local programs to be from families who do not meet these low-income criteria. The Act also requires that a minimum of 10 percent of the enrollment opportunities in each program be made available to children with disabilities. Such children are expected to participate in the full range of Head Start services and activities with their non-disabled peers and to receive needed special education and related services. II. Summary of the Final Rule This final rule was published as a Notice of Proposed Rulemaking on December 16, 1997, in the Federal Register (62 FR 65778). We received no comments on the rule and therefore are issuing it as final with no changes. The authority for this final rule is section 646 of the Head Start Act (42 U.S.C. 9841), as amended by Public Law 103-252, Title I of the Human Service Amendments of 1994. Section 646(e) directs the Secretary to specify a process by which an Indian tribe may identify an agency, and request that the agency identified be designated as the Head Start agency providing services to the tribe, if (a) financial assistance to the tribal grantee is terminated, and (b) the tribe would otherwise be precluded from providing Head Start services to its members because of the termination. The Act specifies that the regulation must prohibit the designation as Head Start grantee of an agency that includes an employee who served on the administrative or program staff of the terminated agency when that employee was responsible for a deficiency that was the basis for the termination. The final rule:Adds a new definition for Indian tribe; Provides that an Indian tribe may identify an agency to serve as the alternative grantee at the time that it receives a notice of termination or a notice of denial of refunding; Allows the tribe to participate in the selection of the replacement grantee; and Allows the tribe a second opportunity to identify an alternative agency if the Department finds the first agency identified by the tribe is not an eligible agency capable of operating a Head Start program. If the second agency identified by the tribe is not selected as a Head Start grantee, a [[Page 34329]] replacement grantee will be designated under 45 CFR Part 1302. III. Impact Analysis Executive Order 12866 Executive Order 12866 requires that regulations be drafted to ensure that they are consistent with the priorities and principles set forth in the Executive Order. The Department has determined that this final rule is consistent with these priorities and principles. This final rule sets forth a process whereby an Indian tribe that is being terminated as a Head Start grantee may identify an alternative agency and request that the alternative agency be designated as the Head Start agency providing services to the tribe. The costs of implementing this rule are not significant. Regulatory Flexibility Act of 1980 The Regulatory Flexibility Act (5 U.S.C. Ch. 6) requires the Federal Government to anticipate and reduce the impact of rules and paperwork requirements on small businesses. For each rule with a ``significant economic impact on a substantial number of small entities'' an analysis must be prepared describing the rule's impact on small entities. Small entities are defined by the Act to include small businesses, small non-profit organizations and small governmental entities. While these regulations would affect small entities, they would not affect a substantial number. Also, the rule will not have a significant economic impact because the only action called for is to nominate a successor grantee, which should not require more than a nominal expenditure of grant funds. For this reason, the Secretary certifies that this rule will not have a significant impact on substantial numbers of small entities. Paperwork Reduction Act Under the Paperwork Reduction Act of 1995, Public Law 104-13, all Departments are required to submit collections of information contained in proposed and final rules published in the Federal Register to the Office of Management and Budget for review and approval. This final rule does not contain collection of information as defined in the Paperwork Reduction Act and implementing regulations. List of Subjects in 45 CFR Part 1302 Education of disadvantaged, Grant programs--social programs, Selection of grantees. (Catalog of Federal Domestic Assistance Program Number 93.600, Project Head Start) Dated: June 2, 1998. Olivia A. Golden, Assistant Secretary for Children and Families. For the reasons set forth in the Preamble, 45 CFR Part 1302 is amended as follows: PART 1302--POLICIES AND PROCEDURES FOR SELECTION, INITIAL FUNDING, AND REFUNDING OF HEAD START GRANTEES, AND FOR SELECTION OF REPLACEMENT GRANTEES 1. The Authority citation for part 1302 continues to read as follows: Authority: 42 U.S.C. 9801 et seq. 2. Section 1302.2 is amended by adding a definition for ``Indian Tribe'' to read as follows: Sec. 1302.2 Definitions. * * * * * Indian tribe means any tribe, band, nation, pueblo, or other organized group or community of Indians, including any Native village described in section 3(c) of the Alaska Native Claims Settlement Act (43 U.S.C. 1602 (c)) or established pursuant to such Act (43 U.S.C. 1601 et seq.) that is recognized as eligible for special programs and services provided by the United States to Indians because of their status as Indians. * * * * * 3. A new Subpart D, containing new sections 1302.30, 1302.31, and 1302.32, is added to read as follows: Subpart D--Replacement of Indian Tribal Grantees Sec. 1302.30 Procedure for identification of alternative agency. (a) An Indian tribe whose Head Start grant has been terminated, or which has been denied refunding as a Head Start grantee, may identify an agency and request the responsible HHS official to designate such agency as an alternative agency to provide Head Start services to the tribe if: (1) The tribe was the only agency that was receiving federal financial assistance to provide Head Start services to members of the tribe; and (2) The tribe would be otherwise precluded from providing such services to its members because of the termination or denial of refunding. (b)(1) The responsible HHS official, when notifying a tribal grantee of the intent to terminate financial assistance or deny its application for refunding, must notify the grantee that it may identify an agency and request that the agency serve as the alternative agency in the event that the grant is terminated or refunding denied. (2) The tribe must identify the alternate agency to the responsible HHS official, in writing, within the time for filing an appeal under 45 CFR Part 1303. (3) The responsible HHS official will notify the tribe, in writing, whether the alternative agency proposed by the tribe is found to be eligible for Head Start funding and capable of operating a Head Start program. If the alternative agency identified by the tribe is not an eligible agency capable of operating a Head Start program, the tribe will have 15 days from the date of the sending of the notification to that effect from the responsible HHS official to identify another agency and request that the agency be designated. The responsible HHS official will notify the tribe in writing whether the second proposed alternate agency is found to be an eligible agency capable of operating the Head Start program. (4) If the tribe does not identify a suitable alternative agency, a replacement grantee will be designated under these regulations. (c) If the tribe appeals a termination of financial assistance or a denial of refunding, it will, consistent with the terms of 45 CFR Part 1303, continue to be funded pending resolution of the appeal. However, the responsible HHS official and the grantee will proceed with the steps outlined in this regulation during the appeal process. (d) If the tribe does not identify an agency and request that the agency be appointed as the alternative agency, the responsible HHS official will seek a permanent replacement grantee under these regulations. Sec. 1302.31 Requirements of alternative agency. The agency identified by the Indian tribe must establish that it meets all requirements established by the Head Start Act and these requirements for designation as a Head Start grantee and that it is capable of conducting a Head Start program. The responsible HHS official, in deciding whether to designate the proposed agency, will analyze the capacity and experience of the agency according to the criteria found in section 641(d) of the Head Start Act and Secs. 1302.10 (b)(1) through (5) and 1302.11 of this part. Sec. 1302.32 Alternative agency--prohibition. (a) No agency will be designated as the alternative agency pursuant to this subpart if the agency includes an employee who: (1) Served on the administrative or program staff of the Indian tribal grantee, and (2) Was responsible for a deficiency that: (i) Relates to the performance standards or financial management [[Page 34330]] standards described in the Head Start Act; and (ii) Was the basis for the termination or denial of refunding described in Sec. 1302.30 of this part. (b) The responsible HHS official shall determine whether an employee was responsible for a deficiency within the meaning and context of this section. [FR Doc. 98-16826 Filed 6-23-98; 8:45 am] BILLING CODE 4184-01-P