81 FR 9410 - Cost Standards and Procedures; Property Acquisition and Management Manual

LEGAL SERVICES CORPORATION

Federal Register Volume 81, Issue 37 (February 25, 2016)

The Operations and Regulations Committee (Committee) of the Board of Directors for the Legal Services Corporation (LSC) is conducting three rulemaking workshops (Workshops) and is requesting public comments on revising LSC's Cost Standards and Procedures rule, 45 CFR part 1630, and LSC's Property Acquisition and Management Manual (PAMM). The discussions in the Workshops and the other comments received will be considered in connection with rulemaking by LSC. LSC is soliciting expressions of interest in participating as a panelist in the Workshops from LSC grantees and other interested stakeholders with relevant experience, such as other funders of civil legal aid programs.

[Federal Register Volume 81, Number 37 (Thursday, February 25, 2016)]
[Proposed Rules]
[Pages 9410-9412]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2016-03954]


=======================================================================
-----------------------------------------------------------------------

LEGAL SERVICES CORPORATION

45 CFR Part 1630


Cost Standards and Procedures; Property Acquisition and 
Management Manual

AGENCY: Legal Services Corporation.

ACTION: Notice of rulemaking workshops, request for expressions of 
interest in participating in the rulemaking workshops, initiation of 
open comment period.

-----------------------------------------------------------------------

SUMMARY: The Operations and Regulations Committee (Committee) of the 
Board of Directors for the Legal Services Corporation (LSC) is 
conducting three rulemaking workshops (Workshops) and is requesting 
public comments on revising LSC's Cost Standards and Procedures rule, 
45 CFR part 1630, and LSC's Property Acquisition and Management Manual 
(PAMM). The discussions in the Workshops and the other comments 
received will be considered in connection with rulemaking by LSC. LSC 
is soliciting expressions of interest in participating as a panelist in 
the Workshops from LSC grantees and other interested stakeholders with 
relevant experience, such as other funders of civil legal aid programs.

DATES: Expressions of interest in participating in the Rulemaking 
Workshops for Part 1630 and the PAMM must be received by 5:30 p.m. EST 
on March 17, 2016. The dates of the Workshops are:
    1. April 20, 2016, 1:30 p.m. to 4:30 p.m. EST, Washington, DC.
    2. May 18, 2016, 1:30 p.m. to 4:30 p.m. EST, Washington, DC.
    3. June 15, 2016, 1:30 p.m. to 4:30 p.m. EST, Washington, DC.
    See the SUPPLEMENTARY INFORMATION section for additional relevant 
dates.

ADDRESSES: Expressions of interest may be submitted by any of the 
following methods:
    Email: [email protected]. Include ``1630/PAMM Workshops'' in 
the subject line of the message.
    Fax: 202-337-6519.
    Mail: Stefanie K. Davis, Assistant General Counsel, Legal Services 
Corporation, 3333 K St. NW., Washington, DC 20007.
    Hand Delivery/Courier: Stefanie K. Davis, Assistant General 
Counsel, Legal Services Corporation, 3333 K St. NW., Washington, DC 
20007.
    Instructions: All submissions must include the subject ``1630/PAMM 
Workshops. For detailed instructions on submitting expressions of 
interest in participating as a panelist in the Workshops or on 
submitting comments about the topics to be discussed in the Workshops, 
please see Sections VI. and VII. of the SUPPLEMENTARY INFORMATION 
section.

FOR FURTHER INFORMATION CONTACT: Stefanie K. Davis, Assistant General 
Counsel, Legal Services Corporation, 3333 K St. NW., Washington, DC 
20007; (202) 295-1563 (phone); 202-337-6519 (fax); or [email protected].

SUPPLEMENTARY INFORMATION:

I. Background

    On July 16, 2015, LSC management (Management) presented the 
Committee with a Justification Memorandum recommending publication of 
an advance notice of proposed rulemaking (ANPRM) to seek public comment 
on possible revisions to 45 CFR part 1630--Cost Standards and 
Procedures, and LSC's Property Acquisition and Management Manual 
(PAMM). Management stated that collecting input from LSC funding 
recipients through an ANPRM would aid LSC significantly in determining 
the scope of the rulemaking and in developing a more accurate 
understanding of the potential costs and benefits of certain revisions. 
The Committee voted to recommend that the Board approve Management's 
recommendation and authorize LSC to open rulemaking for Part 1630 and 
the PAMM. On July 18, 2015, the LSC Board authorized rulemaking and 
approved the preparation of an ANPRM to revise Part 1630 and the PAMM. 
On October 9, 2015, LSC published an ANPRM seeking public comment on 
the proposed changes to Part 1630 and the PAMM. 80 FR 61142, Oct. 9, 
2015. The comment period closed on December 8, 2015.

[[Page 9411]]

    LSC received comments from the National Legal Aid and Defender 
Association (NLADA), Colorado Legal Services (CLS), and the Northwest 
Justice Project (NJP). The comments generally expressed concerns about 
the following: The disparity and potential conflict between LSC's 
proposed changes and the requirements imposed by recipients' other 
funders; expanding the prior approval requirements of 45 CFR 1630.5 and 
Section 3 of the PAMM to include aggregate purchases exceeding a 
certain dollar threshold; and the proposal to regulate the awarding of 
service contracts and the disposition of real and personal property by 
organizations that receive LSC funds. Additionally, NLADA recommended 
that LSC engage its grantees in additional discussions about the impact 
that the proposed changes would have on the grantees' operations before 
drafting a proposed rule.
    LSC's Rulemaking Protocol contemplates using rulemaking workshops 
or negotiated rulemaking when one of those vehicles is appropriate to 
help LSC gather additional information before drafting a proposed rule. 
LSC believes that rulemaking workshops will provide an opportunity for 
LSC funding recipients to more effectively share their views on LSC's 
proposed changes to part 1630 and the PAMM and to elaborate on the 
comments received in response to the ANPRM. On January 28, 2016, the 
Committee voted to approve rulemaking workshops for LSC's rulemaking on 
Part 1630 and the PAMM.

IV. Topics for Discussion

    The following three topics will be addressed during the Workshops. 
Each Workshop will focus on one of the topics and may use any or all of 
the potential items for discussion to direct the discussion.
    Topic 1: Requirements of Other Funders. How do LSC's proposed 
changes to its cost standards and procedures and property acquisition 
and disposition requirements interact with the requirements imposed by 
recipients' other funders, including the requirements governing 
intellectual property created using various sources of funding?
    Potential Items for Discussion on Topic 1:
     Generally, do other funders require recipients to provide 
notice and/or seek prior approval for the acquisition and disposition 
of real property and personal property? If so, what processes and 
documentation do the funders require?
     Do LSC's proposed changes to Part 1630 and the PAMM 
directly conflict with the requirements of other funders? If so, how?
     Do other funders require recipients to seek prior approval 
for procurements of goods and services? If so, what procedures must 
recipients follow to seek approval?
     Do other funders require recipients to seek prior approval 
for purchases of single items above a certain threshold amount? If so, 
what is that threshold amount?
     Do other funders require recipients to seek prior approval 
for purchases of multiple items when the aggregate cost of the items 
exceeds a certain dollar threshold? If so, what is that threshold 
amount?
     How can LSC structure its prior approval process to more 
closely align with the requirements imposed by other funders?
     What are the requirements of other funders with respect to 
the use and ownership of products, data, or intellectual property 
developed with their funds? For example, do other funders reserve 
rights in intellectual property developed with their funds, or require 
recipients to display the funder's identity on products such as Web 
sites or brochures?
     How do LSC's cost standards compare and interact with cost 
standards imposed by recipients' other funders?
    Topic 2: LSC's Proposals. In the ANPRM, LSC proposed to regulate 
services contracts. LSC also proposed to require recipients to seek 
prior approval of aggregate purchases of personal property, 
acquisitions of personal and real property purchased or leased using 
LSC funds, and disposal of real or personal property purchased or 
leased using LSC funds.
    Potential Items for Discussion on Topic 2:
     What are the administrative costs (in terms of dollars, 
time, and resources) of obtaining prior approval from LSC with respect 
to property acquisition and disposition? How can LSC revise its prior 
approval process to lessen these administrative costs?
     How can LSC clarify when recipients must seek prior 
approval to acquire and dispose of real and personal property?
     If LSC raises the threshold amount at which single 
purchases of personal property require prior approval, what other 
changes, if any, should LSC make to part 1630 to accompany this 
increase?
     Should LSC adopt a separate and distinct prior approval 
threshold amount for aggregate purchases of personal property?
     If LSC proposes to require prior approval for purchases of 
multiple items whose aggregate value exceeds a certain dollar amount 
threshold, should LSC limit the types of purchases subject to this 
prior approval requirement? For example, should LSC require recipients 
to seek prior approval for purchases of multiple computers, printers, 
or pieces of furniture exceeding a certain dollar amount, but not 
require recipients to seek prior approval for multiple purchases of 
units of printer paper or similar office supplies?
     Should LSC require recipients to seek instructions for 
disposition of real or personal property if the fair market value of 
the property exceeds a certain dollar threshold? If so, what should the 
threshold be?
     Should LSC require recipients to seek disposition 
instructions from LSC before disposing of personal or real property 
acquired with LSC funds? If so, what factors should LSC consider when 
establishing such instructions?
    Topic 3: Establishing Standards based on the Office of Management 
and Budget's (OMB) Uniform Guidance. LSC proposed to establish minimum 
standards for recipients' procurement policies based on the OMB Uniform 
Guidance. LSC also proposed to revise part 1630 for consistency with 
the Uniform Guidance, where appropriate.
    Potential Items for Discussion on Topic 3:
     Generally, what are the existing procurement policies that 
recipients currently have in place to maintain internal controls 
regarding purchases and compliance with LSC's rules in part 1630 and 
the PAMM?
     Do recipients have different procurement policies for real 
property, personal property, and services?
     Should LSC establish minimum standards for procurement 
policies for recipients to use for acquisitions of personal property 
when the acquisition costs exceed a certain threshold amount?
     What changes would recipients have to make to their 
policies if LSC adopted minimum standards for recipients' procurement 
policies based on OMB's Uniform Guidance in 2 CFR part 200? If LSC were 
to model its revised procurement standards based on the standards in 
the OMB Uniform Guidance, would LSC's policy conflict with the 
requirements of other funders?

V. Nature of the Workshops

    Rulemaking workshops enable LSC to meet with interested parties to 
discuss, but not negotiate, proposed LSC rules

[[Page 9412]]

and regulations. Workshops for part 1630 and the PAMM will consist of 
three publicly noticed meetings of the Committee with the participation 
of Management, invited stakeholder representatives, and other 
interested and well-informed parties to discuss the three topics 
outlined above. During the Workshops, the panelists and participants 
will hold open discussions, moderated by a member of the Committee (or 
other person designated by the Committee chair), to share ideas 
regarding how to revise Part 1630 and the PAMM.
    LSC will host three Rulemaking Workshops at its headquarters, 3333 
K Street NW., Washington, DC 20007. The first Workshop will be held on 
April 20, 2016, and will focus on the first topic for discussion. The 
second workshop will be held on May 18, 2016 and will focus on the 
second topic for discussion. The third Workshop will be held on June 
15, 2016 and will focus on the third topic for discussion. LSC will 
consider accommodating panelists who are unable to attend in person 
electronically via telephone or webinar. LSC will publish additional 
details regarding the time, webinar and call-in information, and agenda 
for each Workshop at least one week prior to the scheduled date of the 
Workshop.

VI. Composition of Workshops

    The Workshops will be in the form of a panel discussion consisting 
of Committee members, LSC staff members, Office of Inspector General 
(OIG) staff members, and a select number of interested stakeholders 
selected by LSC. LSC will select participants for each workshop to 
participate as members of the Workshop panel. LSC will seek to select 
panelists to create diversity in terms of organizational size, service 
area and geographic location, funding sources, and percentage of 
funding received from LSC. Some participants may be selected to 
participate in more than one workshop. Interested persons should submit 
an expression of interest according to the instructions outlined below.
    LSC is inviting expressions of interest in participating on 
Workshop panels from its grantees and other stakeholders with relevant 
experience. LSC is particularly interested receiving expressions of 
interest from Executive Directors and accounting and finance personnel 
of LSC funding recipients. Panelists should have experience in handling 
procurements for LSC funding recipients and applying LSC's cost 
standards and procedures. Additionally, LSC is interested in receiving 
expressions of interest from other funders of civil legal aid programs, 
including private foundations and federal, state, and local 
governments, to participate in the first workshop. Persons interested 
in participating as panelists should submit expressions of interest 
including, at a minimum: (1) A brief biographical statement, (2) a 
brief statement of relevant experience in applying and/or implementing 
the requirements of part 1630 and the PAMM, and (3) the specific 
workshop(s) in which the prospective panelist is interested in 
attending.
    Expressions of interest in participating as a panelist should be 
submitted, in writing, to Stefanie K. Davis, Assistant General Counsel, 
Legal Services Corporation; via email to [email protected]; via fax to 
202-337-6519; or by mail or courier/hand delivery 3333 K Street NW., 
Washington, DC 20007. Expressions of interest must be received by LSC 
by 5:30 p.m. EST on the date provided in the DATES section. LSC will 
select panelists shortly after the deadline and will inform all those 
who expressed interest whether or not they have been selected.
    Prior to each meeting, those selected as panelists will be asked to 
register with LSC to ensure that sufficient arrangements can be made 
for their participation. Panelists are expected to cover their own 
expenses (travel, lodging, etc.). LSC may consider providing financial 
assistance to a panelist for whom travel costs would represent a 
significant hardship and barrier to participation. Any such person 
should so note in his/her expression of interest for LSC's 
consideration. LSC will also consider allowing interested applicants 
who cannot attend the Workshops in person to participate on the panel 
remotely.

VII. Public Participation: Panelists and Open Comment

    In addition to the panel, LSC encourages observation and 
participation by all interested individuals and organizations. The 
Workshops will be open to public observation, and portions of the 
Workshop will be open for public comment from in-person, webinar, and 
telephone participants. The meeting agenda will include opportunities 
for individuals in attendance who are not members of the panel to 
participate in person, by webinar, or via telephone, as well as 
incorporating previously submitted written comments by those unable to 
attend. LSC will transcribe the meetings and make the webinar available 
on its Web site.
    Through this notice, LSC is also opening a written comment period. 
LSC welcomes written comments during the comment period and will 
consider the comments received in the rulemaking process. Written 
comments received prior to the Workshops may be addressed in the 
Workshops. Written comments are requested by the following dates:
    1. April 8, 2016 for LSC to consider including in the first 
Workshop discussion.
    2. May 6, 2016 for LSC to consider including in the second Workshop 
discussion.
    3. June 3, 2016 for LSC to consider including in the third Workshop 
discussion. All other written comments must be received by July 15, 
2016. Written comments submitted to LSC must be in .pdf format (if 
submitted electronically) and sent to [email protected]. If delivered via 
facsimile, mail, or courier/hand delivery, please address the comments 
to: Stefanie K. Davis, Assistant General Counsel, Legal Services 
Corporation, 3333 K St. NW., Washington, DC 20007; (202) 337-6519 
(fax). LSC will not consider comments sent by any method or received 
after the end of the comment period.

VIII. Important Notes

    Information received in response to this Notice of Rulemaking 
Workshops and Request for Expressions of Interest in Participation in 
the Rulemaking Workshops may be published or summarized by LSC without 
acknowledgement of or permission from you or your organization. 
Furthermore, your responses may be releasable to the public under the 
LSC's adoption of the Freedom of Information Act (FOIA), 42 U.S.C. 
2996d, and the LSC FOIA regulation, 45 CFR part 1602. LSC, at its 
discretion, may request individual commenters to elaborate on 
information in their written comments.

    Dated: February 19, 2016.
Stefanie K. Davis,
Assistant General Counsel.
 [FR Doc. 2016-03954 Filed 2-24-16; 8:45 am]
 BILLING CODE 7050-01-P