Rule2021-19141
Distance Education and Innovation; Correction
Primary source
Metadata and text below are from the Federal Register, a public-domain U.S. government work. Always verify the official published version before relying on it for any legal matter.
Published
September 3, 2021
Effective
September 3, 2021
Issuing agencies
Education Department
Abstract
On September 2, 2020, the Department of Education (Department) published in the Federal Register a final rule to amend the general, establishing eligibility, maintaining eligibility, and losing eligibility sections of the Institutional Eligibility regulations issued under the Higher Education Act of 1965, as amended (HEA), related to distance education and innovation, as well as the Student Assistance General Provisions regulations issued under the HEA (Distance Education and Innovation Rule). This document corrects the text in the regulations.
Full Text
<html>
<head>
<title>Federal Register, Volume 86 Issue 169 (Friday, September 3, 2021)</title>
</head>
<body><pre>
[Federal Register Volume 86, Number 169 (Friday, September 3, 2021)]
[Rules and Regulations]
[Pages 49478-49480]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2021-19141]
=======================================================================
-----------------------------------------------------------------------
DEPARTMENT OF EDUCATION
34 CFR Part 600
[Docket ID ED-2018-OPE-0076]
RIN 1840-AD38
Distance Education and Innovation; Correction
AGENCY: Office of Postsecondary Education, Department of Education.
ACTION: Correcting amendments.
-----------------------------------------------------------------------
SUMMARY: On September 2, 2020, the Department of Education (Department)
published in the Federal Register a final
[[Page 49479]]
rule to amend the general, establishing eligibility, maintaining
eligibility, and losing eligibility sections of the Institutional
Eligibility regulations issued under the Higher Education Act of 1965,
as amended (HEA), related to distance education and innovation, as well
as the Student Assistance General Provisions regulations issued under
the HEA (Distance Education and Innovation Rule). This document
corrects the text in the regulations.
DATES: This correction is effective on September 3, 2021.
FOR FURTHER INFORMATION CONTACT: Gregory Martin at (202) 453-7535 or
<a href="/cdn-cgi/l/email-protection#8fc8fdeae8e0fdf6a1c2eefdfbe6e1cfeaeba1e8e0f9"><span class="__cf_email__" data-cfemail="3a7d485f5d55484314775b484e53547a5f5e145d554c">[email protected]</span></a>.
If you use a telecommunications device for the deaf (TDD) or a text
telephone (TTY), call the Federal Relay Service (FRS), toll free, at 1-
800-877-8339.
SUPPLEMENTARY INFORMATION: The Department's Distance Education and
Innovation Rule, published in the Federal Register on September 2, 2020
(85 FR 54742), contained an error in the amendatory language that
resulted in the deletion of 34 CFR 600.20(f), (g), and (h). This
correction restores those paragraphs.
Waiver of Proposed Rulemaking and Negotiated Rulemaking
In accordance with the Administrative Procedure Act, 5 U.S.C. 553,
the Department generally offers interested parties the opportunity to
comment on proposed regulations. However, the actions in this document
merely correct a technical error, and thus, the Department has
determined that publication of a proposed rule is unnecessary under 5
U.S.C. 553(b)(B).
In addition, under section 492 of the HEA (20 U.S.C. 1098a), all
regulations proposed by the Department for programs authorized under
title IV of the HEA are subject to negotiated rulemaking requirements.
Section 492(b)(2) of the HEA provides that negotiated rulemaking may be
waived for good cause when doing so would be ``impracticable,
unnecessary, or contrary to the public interest.'' There is likewise
good cause to waive the negotiated rulemaking requirement in this case,
since, as explained above, notice and comment rulemaking is
unnecessary.
Accessible Format: On request to the program contact person listed
under FOR FURTHER INFORMATION CONTACT, individuals with disabilities
can obtain this document in an accessible format. The Department will
provide the requestor with an accessible format that may include Rich
Text Format (RTF) or text format (txt), a thumb drive, an MP3 file,
braille, large print, audiotape, or compact disc, or other accessible
format.
Electronic Access to This Document: The official version of this
document is the document published in the Federal Register. You may
access the official edition of the Federal Register and the Code of
Federal Regulations at <a href="http://www.govinfo.gov">www.govinfo.gov</a>. At this site you can view this
document, as well as all other documents of this Department published
in the Federal Register, in text or Portable Document Format (PDF). To
use PDF you must have Adobe Acrobat Reader, which is available free at
the site.
You may also access documents of the Department published in the
Federal Register by using the article search feature at
<a href="http://www.federalregister.gov">www.federalregister.gov</a>. Specifically, through the advanced search
feature at this site, you can limit your search to documents published
by the Department.
List of Subjects in 34 CFR Part 600
Colleges and universities, Grant programs--education, Loan
programs--education, Reporting and recordkeeping requirements, Student
aid, Vocational education.
Michelle Asha Cooper,
Acting Assistant Secretary for Postsecondary Education.
Accordingly, the Secretary corrects 34 CFR part 600 by making the
following correcting amendment:
PART 600--INSTITUTIONAL ELIGIBILITY UNDER THE HIGHER EDUCATION ACT
OF 1965, AS AMENDED
0
1. The authority citation for part 600 continues to read as follows:
Authority: 20 U.S.C. 1001, 1002, 1003, 1088, 1091, 1094, 1099b,
and 1099c, unless otherwise noted.
0
2. Section 600.20 is amended by adding paragraphs (f) through (h) and a
parenthetical OMB approval note to read as follows:
Sec. 600.20 Notice and application procedures for establishing,
reestablishing, maintaining, or expanding institutional eligibility and
certification.
* * * * *
(f) Disbursement rules related to applications. (1)(i) Except as
provided under paragraph (f)(1)(ii) of this section and 34 CFR 668.26,
if an institution submits an application under paragraph (b)(2)(i) of
this section because its participation period is scheduled to expire,
after that expiration date the institution may not disburse title IV,
HEA program funds to students attending that institution until the
institution receives the Secretary's notification that the institution
is again eligible to participate in those programs.
(ii) An institution described in paragraph (f)(1)(i) of this
section may disburse title IV, HEA program funds to its students if the
institution submits to the Secretary a materially complete renewal
application in accordance with the provisions of 34 CFR 668.13(b)(2),
and has not received a final decision from the Department on that
application.
(2)(i) Except as provided under paragraph (f)(2)(ii) of this
section and 34 CFR 668.26, if a private nonprofit, private for-profit,
or public institution submits an application under paragraph (b)(2)(ii)
or (iii) of this section because it has undergone or will undergo a
change in ownership that results in a change of control or a change in
status, the institution may not disburse title IV, HEA program funds to
students attending that institution after the change of ownership or
status until the institution receives the Secretary's notification that
the institution is eligible to participate in those programs.
(ii) An institution described in paragraph (f)(2)(i) of this
section may disburse title IV, HEA program funds to its students if the
Secretary issues a provisional extension of certification under
paragraph (g) of this section.
(3) If an institution must apply to the Secretary under paragraphs
(c)(1) through (4) of this section, the institution may not disburse
title IV, HEA program funds to students attending the subject location,
program, or branch until the institution receives the Secretary's
notification that the location, program, or branch is eligible to
participate in the title IV, HEA programs.
(4) If an institution applies to the Secretary under paragraph
(c)(5) of this section to convert an eligible location to a branch
campus, the institution may continue to disburse title IV, HEA program
funds to students attending that eligible location.
(5) If an institution does not apply to the Secretary to obtain the
Secretary's approval of a new location, program, increased level of
program offering, or branch, and the location, program, or branch does
not qualify as an eligible location, program, or branch of that
institution under this part and 34 CFR part 668, the institution is
liable for all title IV, HEA program funds it disburses to students
enrolled at that location or branch or in that program.
(g) Application for provisional extension of certification. (1) If
a private nonprofit institution, a private for-profit institution, or a
public institution
[[Page 49480]]
participating in the title IV, HEA programs undergoes a change in
ownership that results in a change of control as described in Sec.
600.31, the Secretary may continue the institution's participation in
those programs on a provisional basis, if the institution under the new
ownership submits a ``materially complete application'' that is
received by the Secretary no later than 10 business days after the day
the change occurs.
(2) For purposes of this section, a private nonprofit institution,
a private for-profit institution, or a public institution submits a
materially complete application if it submits a fully completed
application form designated by the Secretary supported by--
(i) A copy of the institution's State license or equivalent
document that--as of the day before the change in ownership--authorized
or will authorize the institution to provide a program of postsecondary
education in the State in which it is physically located;
(ii) A copy of the document from the institution's accrediting
association that--as of the day before the change in ownership--granted
or will grant the institution accreditation status, including approval
of any non-degree programs it offers;
(iii) Audited financial statements of the institution's two most
recently completed fiscal years that are prepared and audited in
accordance with the requirements of 34 CFR 668.23; and
(iv) Audited financial statements of the institution's new owner's
two most recently completed fiscal years that are prepared and audited
in accordance with the requirements of 34 CFR 668.23, or equivalent
information for that owner that is acceptable to the Secretary.
(h) Terms of the extension. (1) If the Secretary approves the
institution's materially complete application, the Secretary provides
the institution with a provisional Program Participation Agreement
(PPA). The provisional PPA extends the terms and conditions of the
program participation agreement that were in effect for the institution
before its change of ownership.
(2) The provisional PPA expires on the earlier of--
(i) The date on which the Secretary signs a new program
participation agreement;
(ii) The date on which the Secretary notifies the institution that
its application is denied; or
(iii) The last day of the month following the month in which the
change of ownership occurred, unless the provisions of paragraph (h)(3)
of this section apply.
(3) If the provisional PPA will expire under the provisions of
paragraph (h)(2)(iii) of this section, the Secretary extends the
provisional PPA on a month-to-month basis after the expiration date
described in paragraph (h)(2)(iii) of this section if, prior to that
expiration date, the institution provides the Secretary with--
(i) A ``same day'' balance sheet showing the financial position of
the institution, as of the date of the ownership change, that is
prepared in accordance with Generally Accepted Accounting Principles
(GAAP) published by the Financial Accounting Standards Board and
audited in accordance with Generally Accepted Government Auditing
Standards (GAGAS) published by the U.S. General Accounting Office;
(ii) If not already provided, approval of the change of ownership
from the State in which the institution is located by the agency that
authorizes the institution to legally provide postsecondary education
in that State;
(iii) If not already provided, approval of the change of ownership
from the institution's accrediting agency; and
(iv) A default management plan unless the institution is exempt
from providing that plan under 34 CFR 668.14(b)(15).
(Approved by the Office of Management and Budget under control
number 1845-0012)
[FR Doc. 2021-19141 Filed 9-2-21; 8:45 am]
BILLING CODE 4000-01-P
</pre><script data-cfasync="false" src="/cdn-cgi/scripts/5c5dd728/cloudflare-static/email-decode.min.js"></script></body>
</html>Indexed from Federal Register on September 3, 2021.
This is legal information, not legal advice. Laws vary by jurisdiction and change frequently. Always verify current law with official sources and consult a licensed attorney in your jurisdiction for advice on your specific situation.