82_FR_52467 82 FR 52250 - Matching Funds Requirements for Agricultural Research and Extension Capacity Funds at 1890 Land-Grant Institutions and 1862 Land-Grant Institutions in Insular Areas

82 FR 52250 - Matching Funds Requirements for Agricultural Research and Extension Capacity Funds at 1890 Land-Grant Institutions and 1862 Land-Grant Institutions in Insular Areas

DEPARTMENT OF AGRICULTURE
National Institute of Food and Agriculture

Federal Register Volume 82, Issue 217 (November 13, 2017)

Page Range52250-52253
FR Document2017-24327

The National Institute of Food and Agriculture (NIFA) withdraws the Notice of Proposed Rulemaking (RIN 0524-AA25) published on April 29, 2003. In addition, NIFA proposes to revise its regulations for the purpose of implementing the statutory amendments applicable to the matching requirements for Federal agricultural research and extension capacity (formula) funds for 1890 land-grant institutions (LGUs), including Central State University, Tuskegee University, and West Virginia State University, and 1862 land-grant institutions in insular areas, and to remove the term ``qualifying educational activities.'' These matching requirements were amended by the Farm Security and Rural Investment Act; the Food, Conservation, and Energy Act of 2008; and the Agricultural Act of 2014.

Federal Register, Volume 82 Issue 217 (Monday, November 13, 2017)
[Federal Register Volume 82, Number 217 (Monday, November 13, 2017)]
[Proposed Rules]
[Pages 52250-52253]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2017-24327]


========================================================================
Proposed Rules
                                                Federal Register
________________________________________________________________________

This section of the FEDERAL REGISTER contains notices to the public of 
the proposed issuance of rules and regulations. The purpose of these 
notices is to give interested persons an opportunity to participate in 
the rule making prior to the adoption of the final rules.

========================================================================


Federal Register / Vol. 82, No. 217 / Monday, November 13, 2017 / 
Proposed Rules

[[Page 52250]]



DEPARTMENT OF AGRICULTURE

National Institute of Food and Agriculture

7 CFR Part 3419

RIN 0524-AA68


Matching Funds Requirements for Agricultural Research and 
Extension Capacity Funds at 1890 Land-Grant Institutions and 1862 Land-
Grant Institutions in Insular Areas

AGENCY: National Institute of Food and Agriculture

ACTION: Proposed rule and withdrawal of proposed rule.

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

SUMMARY: The National Institute of Food and Agriculture (NIFA) 
withdraws the Notice of Proposed Rulemaking (RIN 0524-AA25) published 
on April 29, 2003. In addition, NIFA proposes to revise its regulations 
for the purpose of implementing the statutory amendments applicable to 
the matching requirements for Federal agricultural research and 
extension capacity (formula) funds for 1890 land-grant institutions 
(LGUs), including Central State University, Tuskegee University, and 
West Virginia State University, and 1862 land-grant institutions in 
insular areas, and to remove the term ``qualifying educational 
activities.'' These matching requirements were amended by the Farm 
Security and Rural Investment Act; the Food, Conservation, and Energy 
Act of 2008; and the Agricultural Act of 2014.

DATES: As of November 13, 2017, the proposed rule published April 29, 
2003, at 68 FR 23013, is withdrawn. Submit comments on the proposed 
rule on or before January 12, 2018.

ADDRESSES: You must submit comments, identified by 7 CFR part 3419, 
electronically through the Federal eRulemaking Portal: http://www.regulations.gov. Follow the instructions online for submitting 
comments.

FOR FURTHER INFORMATION CONTACT: Maggie Ewell, Senior Policy Advisor, 
202-401-0222.

SUPPLEMENTARY INFORMATION: 

I. Background and Purpose

    The National Institute of Food and Agriculture (NIFA) is revising 
part 3419 of Title 7, subtitle B, chapter XXXIV of the Code of Federal 
Regulations which implements the matching requirements provided under 
section 1449 of the National Agricultural Research, Extension, and 
Teaching Policy Act of 1977 (NARETPA) for agricultural research and 
extension capacity (formula) funds authorized for the 1890 land-grant 
institutions, including Central State University, Tuskegee University, 
and West Virginia State University and 1862 land-grant institutions in 
insular areas. This revision is required due to the statutory 
amendments of sections 7212 of the Farm Security and Rural Investment 
Act of 2002 (FSRIA); section 7127 of the Food, Conservation, and Energy 
Act of 2008; and section 7129 of the Agricultural Act of 2014. 
Additionally, NIFA is making changes to the Definitions and Use of 
Matching Funds sections to provide clarity on allowable uses of 
matching funds. NIFA rescinds the previous, not yet finalized, Notice 
of Proposed Rulemaking published in the Federal Register on April 29, 
2003, RIN 0524-AA25 (68 FR 23013).
    Sec.  3419.1 Definitions. The definition of eligible institution 
was updated to include West Virginia State University (formerly West 
Virginia State College) and Central State University. Section 753 of 
the Agricultural, Rural Development, Food and Drug Administration, and 
Related Agencies Appropriations Act, 2002 (Pub. L. 107-76) restored 
1890 land-grant institution status to West Virginia State College. In 
2004, the West Virginia Legislature approved West Virginia State 
College's transition to University status. Central State University was 
recognized as an 1890 land-grant institution under section 7129 of the 
Agricultural Act of 2014.
    In 2014, NIFA re-branded its formula grant programs as ``capacity 
grants.'' Therefore, the definition of formula funds is changed to 
reflect this terminology, capacity funds, and the words ``by formula'' 
were inserted to clarify that capacity funds are provided by formula to 
eligible institutions.
    The term and definition for qualifying educational activities was 
removed due to the fact that this term has caused confusion regarding 
what constitutes an allowable qualifying educational activity. NIFA 
follows the authorized uses of funds in NARETPA, codified at 7 U.S.C. 
3221 and 3222, for extension and research programs. Research funds are 
for conducting agricultural research, printing, disseminating the 
results of research, administration, planning and direction, purchase 
and rental of land, and the construction, acquisition, alteration, or 
repair of buildings necessary for conducting agricultural research. 
Extension funds are for the expenses of conducting extension programs 
and activities. 7 U.S.C. 3221(e) expressly prohibits extension funds 
from being spent on college course teaching or lectures in college.
    NARETPA also contains definitions that explain the difference 
between education in conjunction with extension programs and education 
and teaching. Extension education is defined as ``informal'' while 
teaching and education is defined as ``formal classroom instruction,'' 
which is expressly prohibited under 7 U.S.C. 3221(e).
    Because the authorized uses related to education expenses are 
clearly outlined in NARETPA and in 7 U.S.C. 3221 and 3222, NIFA does 
not see value in including the term ``qualifying educational activity'' 
as a term in regulation and, further, wants to ensure there is no 
conflict between its regulatory authorizations and the law. Therefore, 
NIFA is removing the term ``qualifying educational activity'' and will 
allow only informal educational activities, as authorized by statute.
    Sec.  3419.2 Matching funds requirements. Revisions to this section 
were required due to statutory amendments of sections 7212 of FSRIA; 
section 7127 of the Food, Conservation, and Energy Act of 2008; and 
section 7129 of the Agricultural Act of 2014. The information regarding 
Fiscal Years 2000, 2001, and 2002 were removed as they are outdated and 
no longer applicable. NIFA proposes replacing this text with the 
matching requirements for 1862 land-grant institutions in insular areas 
for the Smith-Lever 3(b) and (c) program (7

[[Page 52251]]

U.S.C. 343(e)(4)(A)) and the Hatch Act program (7 U.S.C. 
361c(d)(4)(A)), which state that insular areas will provide matching 
funds from non-Federal sources in an amount equal to not less than 50 
percent of the formula funds distributed by NIFA to each of the 1862 
land-grant institutions in insular areas, respectively. NIFA proposes 
replacing existing text with the matching requirement to the Evans 
Allen/Section 1445 fund program (7 U.S.C. 3222d) and Extension/Section 
1444 fund programs (7 U.S.C. 3221) which state that the State will 
provide equal matching funds from non-Federal sources.
    Sec.  3419.3 Limited Waiver Authority. The section entitled, 
``Determination of non-Federal sources of funds,'' Sec.  3419.3, has 
been removed, because it reiterated a statutory requirement to submit, 
in the year 1999, a report on non-Federal funds used as match to be 
submitted. There is no further statutory requirement or authority to 
submit reports on the sources of non-Federal funds, therefore NIFA 
proposes the removal of this section. Section 3419.4 Limited Waiver 
Authority will be re-designated as Sec.  3419.3 and modified to include 
the provisions of 7 U.S.C. 3222d(d): Authorization of a 50% waiver of 
matching funds authority for 1890 land-grant institutions. 
Additionally, Sec.  3419.3 includes the authority to waive up to 100% 
of the required match for 1862 land-grant institutions in insular areas 
that is present in 7 U.S.C. 343(e)(4)(B).
    NIFA also proposes to add to this section a description of the 
criteria a land-grant institution must demonstrate in order to be 
eligible for a waiver. The three criteria are: Impacts from natural 
disaster, flood, fire, tornado, hurricane, or drought; State and/or 
Institution facing a financial crisis; or lack of matching funds after 
demonstrating a good faith effort to obtain funds.
    Sec.  3419.4 Application for waivers for both 1890 land-grant 
institutions and 1862 land-grant institutions in insular areas. NIFA 
proposes to add Sec.  3419.4 to outline how 1890 land-grant 
institutions and 1862 land-grant institutions in insular areas may 
request a matching waiver. To request a waiver, the president of the 
institution must submit in writing a request for a waiver of the 
matching requirements. The request must include the name of the 
eligible institution, the type of capacity funds, which would include 
Section 1444 Extension, Section 1445 Research; Smith-Lever; or Hatch 
Act; the fiscal year of the match; and the basis of the request, i.e., 
one or more of the criteria identified in 3419.3. Requests for waivers 
may be submitted with the application for funds or at any time during 
the period of performance of the award. Additionally, NIFA includes a 
requirement for current supporting documentation, where current is 
defined as within the past two years from the date of the letter 
requesting the waiver. It is critical that NIFA base its decisions for 
matching waivers on the current state of affairs within the State and 
institution. Using older data does not provide adequate rationale for 
NIFA to waive the statutorily required match for capacity programs.
    Sec.  3419.5 Certification of matching funds. The only proposed 
change in this section is changing the word ``formula'' to 
``capacity,'' consistent with the current terminology used by NIFA.
    Sec.  3419.6 Use of matching funds. NIFA proposes minor technical 
changes to this section, use of the term ``capacity'' in place of 
``formula'' and ``must'' in place of ``shall.'' These technical changes 
have no impact on the requirements from the existing to the proposed 
regulation. Additionally, NIFA proposes to add clarifying language that 
matching funds must be used for the same purpose as Federal dollars as 
well as a specific prohibition on the use of tuition dollars and 
student fees as match.
    The intent of the proposed rule is to clarify two requirements. 
First, the revised proposed rule clarifies that matching funds must be 
used by an eligible institution for the same purpose as Federal award 
dollars: Agricultural research and extension activities that have been 
approved in the plan of work. Second, the revised proposed rule removes 
the end phrase: ``or for approved qualifying educational activities.'' 
As discussed in Sec.  3419.1 Definitions, the use of the phrase 
``qualifying educational activities'' has caused confusion regarding 
what constitutes an allowable qualifying educational activity. NIFA 
supports the position, as required under 2 CFR 200.306, that all 
matching funds must be necessary and reasonable for accomplishment of 
project or program objectives. In other words, to be allowable as a 
match, the costs must be allowable under the Federal award. This 
principle applies to matching funds 1890 land-grant institutions 
receive for Research and Extension programs, as well as the funds 
received by 1862 land-grant institutions in insular areas for Smith-
Lever and Hatch programs.
    NIFA follows the authorized uses of funds in the authorizing 
statutes for determining what is allowable under the Federal award. For 
1862 land-grant institutions in insular areas, this would be the 
authorized uses under 7 U.S.C. 343 for Smith-Lever programs and 7 
U.S.C. 361a for Hatch Act programs.
    For 1890 Extension and Research programs, NIFA follows the 
authorizations included in NARETPA, codified at 7 U.S.C. 3221 and 3222. 
Research funds are for conducting agricultural research; printing; 
disseminating the results of research, administration, planning and 
direction; purchase and rental of land; and the construction, 
acquisition, alteration, or repair of buildings necessary for 
conducting agricultural research. Extension funds are for the expenses 
of conduction extension programs and activities. 7 U.S.C. 3221(e) 
expressly prohibits extension funds from being spent on college course 
teaching or lectures in college.
    NARETPA also contains definitions that explain the difference 
between education in conjunction with extension programs versus 
education and teaching. Extension education is defined as ``informal'' 
while teaching and education is defined as ``formal classroom 
instruction,'' which is expressly prohibited under 7 U.S.C. 3221(e).
    Because the authorized uses related to education expenses are 
clearly outlined in NARETPA and 7 U.S.C. 3221 and 3222, NIFA does not 
see value in including the term ``qualifying educational activity'' as 
a term in regulation and further, wants to ensure there is no conflict 
between its regulatory authorizations and the law. Therefore, NIFA is 
removing the term ``qualifying educational activity;'' however, the 
removal is intended to prohibit expenditures related to formal 
education activities. NIFA will allow only informal education 
activities, as authorized by statute.
    Under 7 U.S.C. 3221(a)(3), funds appropriated for extension must be 
used for the expenses of conducting extension programs and activities, 
and for contributing to the retirement of employees subject to the 
provisions of 7 U.S.C. 331. 7 U.S.C. 3222(e) expressly prohibits 
extension funds from being spent on college course teaching and 
lectures in college. Section 1404(7) of NARETPA defines the term 
extension to mean informal education programs conducted in the States 
in cooperation with the Department of Education. Therefore, NIFA has 
determined that the current authorizations allow for informal education 
programs to be conducted with extension funding, but not for formal 
classroom instruction.
    7 U.S.C. 3222(a)(3) states that: ``research funding must be used 
for the expenses of conducting agricultural research, printing, 
disseminating the

[[Page 52252]]

results of such research, contributing to the retirement of employees 
subject to the provisions of 7 U.S.C. 331 of this title, administrative 
planning and direction, and purchase and rental of land and the 
construction, acquisition, alteration, or repair of buildings necessary 
for conducting agricultural research.''
    Because the authorizing statutes so clearly identify authorized 
uses and prohibitions, NIFA believes that no further explanation or 
inclusion of qualifying educational activities is needed in this 
regulation.
    Sec.  3419.7 Reporting of matching funds. The revised proposed rule 
adds a section on reporting of matching funds to clarify an existing 
requirement that 1890 land-grant institutions and 1862 land-grant 
institutions in insular areas report all capacity funds expended on an 
annual basis using Standard Form (SF) 425, in accordance with 7 CFR 
part 3430. This ensures that the information on matching funds is 
reported to NIFA.
    Sec.  3419.8 Redistribution of funds. The revised proposed rule 
removes the first sentence of the existing provision as the timing of 
reapportionment may vary. Removing this sentence does not change the 
statutory requirements for reapportionment. The only significance of 
the deletion is to remove the July 1 date for action.
    Additionally, one other technical correction is changing ``shall'' 
to ``must,'' consistent with the plain English provisions relating to 
rulemaking.

Executive Order 12866 and Executive Order 13563

    Executive Orders 12866 and 13563 direct agencies to assess all 
costs and benefits of available regulatory alternatives and, if 
regulation is necessary, to select regulatory approaches that maximize 
net benefits (including potential economic, environmental, public 
health and safety effects, distributive impacts, and equity). Executive 
Order 13563 emphasizes the importance of quantifying the costs and 
benefits of simplifying and harmonizing rules, and of promoting 
flexibility. This rulemaking has been determined to be not significant 
for purposes of Executive Order 12866.

Executive Order 13771

    This proposed rule is not expected to be an EO 13771 regulatory 
action because this rulemaking is not significant under EO 12866.

Regulatory Flexibility Act

    This revised proposed rule has been reviewed in accordance with the 
Regulatory Flexibility Act of 1980, as amended by the Small Business 
Regulatory Enforcement Fairness Act of 1996, (5 U.S.C. 601-612). The 
Director of the NIFA certifies that this proposed regulation will not 
have a significant economic impact on a substantial number of small 
entities. This proposed regulation will affect institutions of higher 
education receiving Federal funds under this program. The U.S. Small 
Business Administration Size Standards define institutions as ``small 
entities'' if they are for-profit or nonprofit institutions with total 
annual revenue below $5,000,000 or if they are institutions controlled 
by governmental entities with populations below 50,000. The rulemaking 
does not involve regulatory and informational requirements regarding 
businesses, organizations, and governmental jurisdictions subject to 
regulation.

Catalogue of Federal Domestic Assistance

    The programs affected by this revised proposed rule are listed in 
the Catalogue of Federal Domestic Assistance under 10.500, Cooperative 
Extension Service; and 10.205, Payments to 1890 Land-Grant Colleges and 
Tuskegee University.

Paperwork Reduction Act

    The Department certifies that this revised proposed rule has been 
assessed in accordance with the requirements of the Paperwork Reduction 
Act (PRA), 44 U.S.C. 3501 et seq. The Department concludes that this 
proposed rule does not impose any new information collection 
requirements or change the burden estimate on existing information 
collection requirements. In addition to the SF-424 form families (i.e., 
Research and Related and Mandatory) and the SF-425 Federal Financial 
Report (FFR) No. 0348-0061, NIFA has three currently approved OMB 
information collections associated with this rulemaking: OMB 
Information Collection No. 0524- 0042, NIFA REEport; No. 0524-0041, 
NIFA Application Review Process; and No. 0524-0026, Organizational 
Information.

Unfunded Mandates Reform Act of 1995 and Executive Order 13132

    The Department has reviewed this revised proposed rule in 
accordance with the requirements of Executive Order No. 13132 and the 
Unfunded Mandates Reform Act of 1995, 2 U.S.C. 1501 et seq., and has 
found no potential or substantial direct effects on the States, on the 
relationship between the national government and the States, or on the 
distribution of power and responsibilities among the various levels of 
government. As there is no Federal mandate contained herein that could 
result in increased expenditures by State, local, or tribal 
governments, or by the private sector, the Department has not prepared 
a budgetary impact statement.

Clarity of This Regulation

    Executive Order 12866 and the President's Memorandum of June 1, 
1998, require each agency to write all rulemaking in plain language. 
The Department invites comments on how to make this proposed rule 
easier to understand.

List of Subjects in 7 CFR Part 3419

    Agricultural extension, Agricultural research; 1890 land-grant 
institutions; insular areas; 1862 land-grant institutions in insular 
areas; matching funds.

    For the reasons stated in the preamble, the National Institute of 
Food and Agriculture rescinds the previous Notice of Proposed 
Rulemaking RIN-0524-AA25 issued April 29, 2003 (68 FR 23013) and 
proposes to amend 7 CFR part 3419 as follows:

PART 3419--MATCHING FUNDS REQUIREMENT FOR AGRICULTURAL RESEARCH AND 
EXTENSION CAPACITY FUNDS AT 1890 LAND-GRANT INSTITUTIONS, AND 1862 
LAND-GRANT INSTITUTIONS IN INSULAR AREAS

0
1. The authority citation for part 3419 is revised to read as follows:

    Authority:  7 U.S.C. 3222d; 7 U.S.C. 343(e); 7 U.S.C. 361c; Pub. 
L. 107-171; Pub. L. 110-234; Pub. L. 113-79
0
2. Amend Sec.  3419.1 as follows:
0
a. Add a definition for ``Capacity funds'';
0
b. Revise the definition of ``Eligible institution'';
0
c. Remove the definition of ``Formula funds'';
0
d. Revise the definition of ``Matching funds'';
0
e. Remove the definition of ``Qualifying educational activities''
    The addition and revisions read as follows:


Sec.  3419.1   Definitions.

    As used in this part:
    Capacity funds means agricultural extension and research funds 
provided by formula to the eligible institutions under sections 1444 
and 1445 of the National Agricultural Research, Extension, and Teaching 
Policy Act of

[[Page 52253]]

1977 (NARETPA), as amended, or under sections 3(b) and (c) of the 
Smith-Lever Act, 7 U.S.C. 343(b) and (c) or under section 3 of the 
Hatch Act of 1887, 7 U.S.C. 361c.
    Eligible institution means a college or university eligible to 
receive funds under the Act of August 30, 1890 (7 U.S.C. 321 et seq.) 
(commonly known as the Second Morrill Act), including Central State 
University, Tuskegee University, and West Virginia State University 
(1890 land-grant institutions), and a college or university designated 
under the Act of July 2, 1862 (7 U.S.C. 301, et seq.) (commonly known 
as the First Morrill Act) and located in the Commonwealth of Puerto 
Rico and the insular areas of American Samoa, Guam, Micronesia, 
Northern Marianas, and the Virgin Islands (1862 land-grant institutions 
in insular areas).
    Matching funds means funds from non-Federal sources, including 
those made available by the State to the eligible institutions, for 
programs or activities that fall within the purposes of agricultural 
research and cooperative extension under: sections 1444 and 1445 of 
NARETPA; the Hatch Act of 1887; and the Smith-Lever Act.
* * * * *
0
2. Amend Sec.  3419.2 as follows:
0
a. Remove the introductory text;
0
b. Revise Paragraphs (a) and (b).
    The revisions read as follows:


Sec.  3419.2   Matching funds requirement.

    (a) 1890 land-grant institutions: The distribution of capacity 
funds are subject to a matching requirement. Matching funds will equal 
not less than 100% of the capacity funds to be distributed to the 
institution.
    (b) 1862 land-grant institutions in insular areas: The distribution 
of capacity funds are subject to a matching requirement. Matching funds 
will equal not less than 50% of the capacity funds to be distributed to 
the institution.
* * * * *


Sec.  3419.3   [Removed]

0
3. Remove Sec.  3419.3


Sec.  3419.4   [Redesignated as Sec.  3419.3]

0
4. Redesignate Sec.  3419.4 as Sec.  3419.3 and revise it to read as 
follows:


Sec.  3419.3   Limited waiver authority.

    (a) 1890 land-grant institutions: The Secretary may waive the 
matching funds requirement in 7 CFR 3419.2 above the 50% level for any 
fiscal year for an eligible institution of a State if the Secretary 
determines that the State will be unlikely to satisfy the matching 
requirement.
    (b) 1862 land-grant institutions in insular areas: The Secretary 
may waive up to 100% of the matching funds requirements in 7 CFR 3419.2 
for any fiscal year for an eligible institution in an insular area.
    (c) The criteria to waive the applicable matching requirement for 
1890 land-grant institutions and 1862 land-grant institutions in 
insular areas is demonstration of one or more of the following:
    (1) Impacts from natural disaster, flood, fire, tornado, hurricane, 
or drought;
    (2) State and/or institution facing a financial crisis; or
    (3) Lack of matching funds after demonstration of good faith 
efforts to obtain funds.
    (d) Approval or disapproval of the request for a waiver will be 
based on the application submitted, as defined under Sec.  3419.4.
0
5. Add new Sec.  3419.4 to read as follows:


Sec.  3419.4   Applications for waivers for both 1890 land-grant 
institutions and 1862 land-grant institutions in insular areas.

    Application for waivers for both 1890 land-grant institutions and 
1862 land-grant institutions in insular areas. The president of the 
eligible institution must submit any request for a waiver for matching 
requirements. A waiver application must include the name of the 
eligible institution, the type of Federal capacity funds (i.e. 
research, extension, Hatch, etc.), appropriate fiscal year, the basis 
for the request (e.g. one or more of the criteria identified in Sec.  
3419.3); current supporting documentation, where current is defined as 
within the past two years from the date of the letter requesting the 
waiver; and the amount of the request.


Sec.  3419.5   [Amended]

0
6. Amend Sec.  3419.5 by removing the word ``formula'' and adding, in 
its place, the word ``capacity''.
0
7. Revise Sec.  3419.6 to read as follows:


Sec.  3419.6  Use of matching funds.

    The required matching funds for the capacity programs must be used 
by an eligible institution for the same purpose as Federal award 
dollars: Agricultural research and extension activities that have been 
approved in the plan of work required under sections 1445(c) and 
1444(d) of the National Agricultural Research, Extension, and Teaching 
Policy Act of 1977, section 7 of the Hatch Act of 1887, and section 4 
of the Smith-Lever Act. For all programs, tuition dollars and student 
fees may not be used as matching funds.


Sec.  3419.7   [Redesignated as Sec.  3419.8]

0
8. Redesignate Sec.  3419.7 as Sec.  3419.8, and add a new Sec.  3419.7 
to read as follows:


Sec.  3419.7   Reporting of matching funds.

    Institutions will report all capacity matching funds expended 
annually using Standard Form (SF) 425, in accordance with 7 CFR 
3430.56(a).
0
9. Revise newly redesignated Sec.  3419.8 to read as follows:


Sec.  3419.8   Redistribution of Funds.

    Unmatched research and extension funds will be reapportioned in 
accordance with the research and extension statutory distribution 
formulas applicable to the 1890 and 1862 land-grant institutions in 
insular areas, respectively. Any redistribution of funds must be 
subject to the same matching requirement under Sec.  3419.2.

    Done at Washington, DC, on November 2, 2017.
Sonny Ramaswamy,
NIFA Director, National Institute of Food and Agriculture.
[FR Doc. 2017-24327 Filed 11-9-17; 8:45 am]
 BILLING CODE 3410-22-P



                                                      52250

                                                      Proposed Rules                                                                                                Federal Register
                                                                                                                                                                    Vol. 82, No. 217

                                                                                                                                                                    Monday, November 13, 2017



                                                      This section of the FEDERAL REGISTER                    FOR FURTHER INFORMATION CONTACT:                      clarify that capacity funds are provided
                                                      contains notices to the public of the proposed          Maggie Ewell, Senior Policy Advisor,                  by formula to eligible institutions.
                                                      issuance of rules and regulations. The                  202–401–0222.                                            The term and definition for qualifying
                                                      purpose of these notices is to give interested                                                                educational activities was removed due
                                                      persons an opportunity to participate in the            SUPPLEMENTARY INFORMATION:
                                                                                                                                                                    to the fact that this term has caused
                                                      rule making prior to the adoption of the final
                                                                                                              I. Background and Purpose                             confusion regarding what constitutes an
                                                      rules.
                                                                                                                                                                    allowable qualifying educational
                                                                                                                 The National Institute of Food and                 activity. NIFA follows the authorized
                                                                                                              Agriculture (NIFA) is revising part 3419              uses of funds in NARETPA, codified at
                                                      DEPARTMENT OF AGRICULTURE                               of Title 7, subtitle B, chapter XXXIV of              7 U.S.C. 3221 and 3222, for extension
                                                      National Institute of Food and                          the Code of Federal Regulations which                 and research programs. Research funds
                                                      Agriculture                                             implements the matching requirements                  are for conducting agricultural research,
                                                                                                              provided under section 1449 of the                    printing, disseminating the results of
                                                      7 CFR Part 3419                                         National Agricultural Research,                       research, administration, planning and
                                                                                                              Extension, and Teaching Policy Act of                 direction, purchase and rental of land,
                                                                                                              1977 (NARETPA) for agricultural                       and the construction, acquisition,
                                                      RIN 0524–AA68                                           research and extension capacity                       alteration, or repair of buildings
                                                                                                              (formula) funds authorized for the 1890               necessary for conducting agricultural
                                                      Matching Funds Requirements for
                                                                                                              land-grant institutions, including                    research. Extension funds are for the
                                                      Agricultural Research and Extension
                                                                                                              Central State University, Tuskegee                    expenses of conducting extension
                                                      Capacity Funds at 1890 Land-Grant
                                                                                                              University, and West Virginia State                   programs and activities. 7 U.S.C. 3221(e)
                                                      Institutions and 1862 Land-Grant
                                                                                                              University and 1862 land-grant                        expressly prohibits extension funds
                                                      Institutions in Insular Areas
                                                                                                              institutions in insular areas. This                   from being spent on college course
                                                      AGENCY:  National Institute of Food and                 revision is required due to the statutory             teaching or lectures in college.
                                                      Agriculture                                             amendments of sections 7212 of the                       NARETPA also contains definitions
                                                      ACTION: Proposed rule and withdrawal                    Farm Security and Rural Investment Act                that explain the difference between
                                                      of proposed rule.                                       of 2002 (FSRIA); section 7127 of the                  education in conjunction with extension
                                                                                                              Food, Conservation, and Energy Act of                 programs and education and teaching.
                                                      SUMMARY:    The National Institute of Food              2008; and section 7129 of the                         Extension education is defined as
                                                      and Agriculture (NIFA) withdraws the                    Agricultural Act of 2014. Additionally,               ‘‘informal’’ while teaching and
                                                      Notice of Proposed Rulemaking (RIN                      NIFA is making changes to the                         education is defined as ‘‘formal
                                                      0524–AA25) published on April 29,                       Definitions and Use of Matching Funds                 classroom instruction,’’ which is
                                                      2003. In addition, NIFA proposes to                     sections to provide clarity on allowable              expressly prohibited under 7 U.S.C.
                                                      revise its regulations for the purpose of               uses of matching funds. NIFA rescinds                 3221(e).
                                                      implementing the statutory amendments                   the previous, not yet finalized, Notice of               Because the authorized uses related to
                                                      applicable to the matching requirements                 Proposed Rulemaking published in the                  education expenses are clearly outlined
                                                      for Federal agricultural research and                   Federal Register on April 29, 2003, RIN               in NARETPA and in 7 U.S.C. 3221 and
                                                      extension capacity (formula) funds for                  0524–AA25 (68 FR 23013).                              3222, NIFA does not see value in
                                                      1890 land-grant institutions (LGUs),                       § 3419.1 Definitions. The definition               including the term ‘‘qualifying
                                                      including Central State University,                     of eligible institution was updated to                educational activity’’ as a term in
                                                      Tuskegee University, and West Virginia                  include West Virginia State University                regulation and, further, wants to ensure
                                                      State University, and 1862 land-grant                   (formerly West Virginia State College)                there is no conflict between its
                                                      institutions in insular areas, and to                   and Central State University. Section                 regulatory authorizations and the law.
                                                      remove the term ‘‘qualifying educational                753 of the Agricultural, Rural                        Therefore, NIFA is removing the term
                                                      activities.’’ These matching                            Development, Food and Drug                            ‘‘qualifying educational activity’’ and
                                                      requirements were amended by the                        Administration, and Related Agencies                  will allow only informal educational
                                                      Farm Security and Rural Investment                      Appropriations Act, 2002 (Pub. L. 107–                activities, as authorized by statute.
                                                      Act; the Food, Conservation, and Energy                 76) restored 1890 land-grant institution                 § 3419.2 Matching funds
                                                      Act of 2008; and the Agricultural Act of                status to West Virginia State College. In             requirements. Revisions to this section
                                                      2014.                                                   2004, the West Virginia Legislature                   were required due to statutory
                                                      DATES: As of November 13, 2017, the                     approved West Virginia State College’s                amendments of sections 7212 of FSRIA;
                                                      proposed rule published April 29, 2003,                 transition to University status. Central              section 7127 of the Food, Conservation,
                                                      at 68 FR 23013, is withdrawn. Submit                    State University was recognized as an                 and Energy Act of 2008; and section
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                                                      comments on the proposed rule on or                     1890 land-grant institution under                     7129 of the Agricultural Act of 2014.
                                                      before January 12, 2018.                                section 7129 of the Agricultural Act of               The information regarding Fiscal Years
                                                      ADDRESSES: You must submit                              2014.                                                 2000, 2001, and 2002 were removed as
                                                      comments, identified by 7 CFR part                         In 2014, NIFA re-branded its formula               they are outdated and no longer
                                                      3419, electronically through the Federal                grant programs as ‘‘capacity grants.’’                applicable. NIFA proposes replacing
                                                      eRulemaking Portal: http://                             Therefore, the definition of formula                  this text with the matching
                                                      www.regulations.gov. Follow the                         funds is changed to reflect this                      requirements for 1862 land-grant
                                                      instructions online for submitting                      terminology, capacity funds, and the                  institutions in insular areas for the
                                                      comments.                                               words ‘‘by formula’’ were inserted to                 Smith-Lever 3(b) and (c) program (7


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                                                                           Federal Register / Vol. 82, No. 217 / Monday, November 13, 2017 / Proposed Rules                                          52251

                                                      U.S.C. 343(e)(4)(A)) and the Hatch Act                  application for funds or at any time                  343 for Smith-Lever programs and 7
                                                      program (7 U.S.C. 361c(d)(4)(A)), which                 during the period of performance of the               U.S.C. 361a for Hatch Act programs.
                                                      state that insular areas will provide                   award. Additionally, NIFA includes a                     For 1890 Extension and Research
                                                      matching funds from non-Federal                         requirement for current supporting                    programs, NIFA follows the
                                                      sources in an amount equal to not less                  documentation, where current is                       authorizations included in NARETPA,
                                                      than 50 percent of the formula funds                    defined as within the past two years                  codified at 7 U.S.C. 3221 and 3222.
                                                      distributed by NIFA to each of the 1862                 from the date of the letter requesting the            Research funds are for conducting
                                                      land-grant institutions in insular areas,               waiver. It is critical that NIFA base its             agricultural research; printing;
                                                      respectively. NIFA proposes replacing                   decisions for matching waivers on the                 disseminating the results of research,
                                                      existing text with the matching                         current state of affairs within the State             administration, planning and direction;
                                                      requirement to the Evans Allen/Section                  and institution. Using older data does                purchase and rental of land; and the
                                                      1445 fund program (7 U.S.C. 3222d) and                  not provide adequate rationale for NIFA               construction, acquisition, alteration, or
                                                      Extension/Section 1444 fund programs                    to waive the statutorily required match               repair of buildings necessary for
                                                      (7 U.S.C. 3221) which state that the                    for capacity programs.                                conducting agricultural research.
                                                      State will provide equal matching funds                    § 3419.5 Certification of matching                 Extension funds are for the expenses of
                                                      from non-Federal sources.                               funds. The only proposed change in this               conduction extension programs and
                                                         § 3419.3 Limited Waiver Authority.                   section is changing the word ‘‘formula’’              activities. 7 U.S.C. 3221(e) expressly
                                                      The section entitled, ‘‘Determination of                to ‘‘capacity,’’ consistent with the                  prohibits extension funds from being
                                                      non-Federal sources of funds,’’ § 3419.3,               current terminology used by NIFA.                     spent on college course teaching or
                                                      has been removed, because it reiterated                    § 3419.6 Use of matching funds.                    lectures in college.
                                                      a statutory requirement to submit, in the               NIFA proposes minor technical changes                    NARETPA also contains definitions
                                                      year 1999, a report on non-Federal                      to this section, use of the term                      that explain the difference between
                                                      funds used as match to be submitted.                    ‘‘capacity’’ in place of ‘‘formula’’ and              education in conjunction with extension
                                                      There is no further statutory                           ‘‘must’’ in place of ‘‘shall.’’ These                 programs versus education and
                                                      requirement or authority to submit                      technical changes have no impact on the               teaching. Extension education is defined
                                                      reports on the sources of non-Federal                   requirements from the existing to the                 as ‘‘informal’’ while teaching and
                                                      funds, therefore NIFA proposes the                      proposed regulation. Additionally,                    education is defined as ‘‘formal
                                                      removal of this section. Section 3419.4                 NIFA proposes to add clarifying                       classroom instruction,’’ which is
                                                      Limited Waiver Authority will be re-                    language that matching funds must be                  expressly prohibited under 7 U.S.C.
                                                      designated as § 3419.3 and modified to                  used for the same purpose as Federal                  3221(e).
                                                      include the provisions of 7 U.S.C.                      dollars as well as a specific prohibition                Because the authorized uses related to
                                                      3222d(d): Authorization of a 50%                        on the use of tuition dollars and student             education expenses are clearly outlined
                                                      waiver of matching funds authority for                  fees as match.                                        in NARETPA and 7 U.S.C. 3221 and
                                                      1890 land-grant institutions.                              The intent of the proposed rule is to              3222, NIFA does not see value in
                                                      Additionally, § 3419.3 includes the                     clarify two requirements. First, the                  including the term ‘‘qualifying
                                                      authority to waive up to 100% of the                    revised proposed rule clarifies that                  educational activity’’ as a term in
                                                      required match for 1862 land-grant                      matching funds must be used by an                     regulation and further, wants to ensure
                                                      institutions in insular areas that is                   eligible institution for the same purpose             there is no conflict between its
                                                      present in 7 U.S.C. 343(e)(4)(B).                       as Federal award dollars: Agricultural                regulatory authorizations and the law.
                                                         NIFA also proposes to add to this                    research and extension activities that                Therefore, NIFA is removing the term
                                                      section a description of the criteria a                 have been approved in the plan of work.               ‘‘qualifying educational activity;’’
                                                      land-grant institution must demonstrate                 Second, the revised proposed rule                     however, the removal is intended to
                                                      in order to be eligible for a waiver. The               removes the end phrase: ‘‘or for                      prohibit expenditures related to formal
                                                      three criteria are: Impacts from natural                approved qualifying educational                       education activities. NIFA will allow
                                                      disaster, flood, fire, tornado, hurricane,              activities.’’ As discussed in § 3419.1                only informal education activities, as
                                                      or drought; State and/or Institution                    Definitions, the use of the phrase                    authorized by statute.
                                                      facing a financial crisis; or lack of                   ‘‘qualifying educational activities’’ has                Under 7 U.S.C. 3221(a)(3), funds
                                                      matching funds after demonstrating a                    caused confusion regarding what                       appropriated for extension must be used
                                                      good faith effort to obtain funds.                      constitutes an allowable qualifying                   for the expenses of conducting
                                                         § 3419.4 Application for waivers for                 educational activity. NIFA supports the               extension programs and activities, and
                                                      both 1890 land-grant institutions and                   position, as required under 2 CFR                     for contributing to the retirement of
                                                      1862 land-grant institutions in insular                 200.306, that all matching funds must                 employees subject to the provisions of 7
                                                      areas. NIFA proposes to add § 3419.4 to                 be necessary and reasonable for                       U.S.C. 331. 7 U.S.C. 3222(e) expressly
                                                      outline how 1890 land-grant institutions                accomplishment of project or program                  prohibits extension funds from being
                                                      and 1862 land-grant institutions in                     objectives. In other words, to be                     spent on college course teaching and
                                                      insular areas may request a matching                    allowable as a match, the costs must be               lectures in college. Section 1404(7) of
                                                      waiver. To request a waiver, the                        allowable under the Federal award. This               NARETPA defines the term extension to
                                                      president of the institution must submit                principle applies to matching funds                   mean informal education programs
                                                      in writing a request for a waiver of the                1890 land-grant institutions receive for              conducted in the States in cooperation
                                                      matching requirements. The request                      Research and Extension programs, as                   with the Department of Education.
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                                                      must include the name of the eligible                   well as the funds received by 1862 land-              Therefore, NIFA has determined that the
                                                      institution, the type of capacity funds,                grant institutions in insular areas for               current authorizations allow for
                                                      which would include Section 1444                        Smith-Lever and Hatch programs.                       informal education programs to be
                                                      Extension, Section 1445 Research;                          NIFA follows the authorized uses of                conducted with extension funding, but
                                                      Smith-Lever; or Hatch Act; the fiscal                   funds in the authorizing statutes for                 not for formal classroom instruction.
                                                      year of the match; and the basis of the                 determining what is allowable under the                  7 U.S.C. 3222(a)(3) states that:
                                                      request, i.e., one or more of the criteria              Federal award. For 1862 land-grant                    ‘‘research funding must be used for the
                                                      identified in 3419.3. Requests for                      institutions in insular areas, this would             expenses of conducting agricultural
                                                      waivers may be submitted with the                       be the authorized uses under 7 U.S.C.                 research, printing, disseminating the


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                                                      52252                Federal Register / Vol. 82, No. 217 / Monday, November 13, 2017 / Proposed Rules

                                                      results of such research, contributing to               Regulatory Flexibility Act                            national government and the States, or
                                                      the retirement of employees subject to                    This revised proposed rule has been                 on the distribution of power and
                                                      the provisions of 7 U.S.C. 331 of this                  reviewed in accordance with the                       responsibilities among the various
                                                      title, administrative planning and                      Regulatory Flexibility Act of 1980, as                levels of government. As there is no
                                                      direction, and purchase and rental of                   amended by the Small Business                         Federal mandate contained herein that
                                                      land and the construction, acquisition,                 Regulatory Enforcement Fairness Act of                could result in increased expenditures
                                                      alteration, or repair of buildings                      1996, (5 U.S.C. 601–612). The Director                by State, local, or tribal governments, or
                                                      necessary for conducting agricultural                   of the NIFA certifies that this proposed              by the private sector, the Department
                                                      research.’’                                             regulation will not have a significant                has not prepared a budgetary impact
                                                         Because the authorizing statutes so                  economic impact on a substantial                      statement.
                                                      clearly identify authorized uses and                    number of small entities. This proposed               Clarity of This Regulation
                                                      prohibitions, NIFA believes that no                     regulation will affect institutions of
                                                                                                              higher education receiving Federal                      Executive Order 12866 and the
                                                      further explanation or inclusion of                                                                           President’s Memorandum of June 1,
                                                      qualifying educational activities is                    funds under this program. The U.S.
                                                                                                              Small Business Administration Size                    1998, require each agency to write all
                                                      needed in this regulation.                                                                                    rulemaking in plain language. The
                                                                                                              Standards define institutions as ‘‘small
                                                         § 3419.7 Reporting of matching                       entities’’ if they are for-profit or                  Department invites comments on how to
                                                      funds. The revised proposed rule adds                   nonprofit institutions with total annual              make this proposed rule easier to
                                                      a section on reporting of matching funds                revenue below $5,000,000 or if they are               understand.
                                                      to clarify an existing requirement that                 institutions controlled by governmental
                                                      1890 land-grant institutions and 1862                                                                         List of Subjects in 7 CFR Part 3419
                                                                                                              entities with populations below 50,000.
                                                      land-grant institutions in insular areas                The rulemaking does not involve                         Agricultural extension, Agricultural
                                                      report all capacity funds expended on                   regulatory and informational                          research; 1890 land-grant institutions;
                                                      an annual basis using Standard Form                     requirements regarding businesses,                    insular areas; 1862 land-grant
                                                      (SF) 425, in accordance with 7 CFR part                 organizations, and governmental                       institutions in insular areas; matching
                                                      3430. This ensures that the information                 jurisdictions subject to regulation.                  funds.
                                                      on matching funds is reported to NIFA.                                                                          For the reasons stated in the
                                                                                                              Catalogue of Federal Domestic                         preamble, the National Institute of Food
                                                         § 3419.8 Redistribution of funds.                    Assistance
                                                      The revised proposed rule removes the                                                                         and Agriculture rescinds the previous
                                                      first sentence of the existing provision                  The programs affected by this revised               Notice of Proposed Rulemaking RIN–
                                                      as the timing of reapportionment may                    proposed rule are listed in the Catalogue             0524–AA25 issued April 29, 2003 (68
                                                      vary. Removing this sentence does not                   of Federal Domestic Assistance under                  FR 23013) and proposes to amend 7 CFR
                                                      change the statutory requirements for                   10.500, Cooperative Extension Service;                part 3419 as follows:
                                                      reapportionment. The only significance                  and 10.205, Payments to 1890 Land-
                                                                                                              Grant Colleges and Tuskegee University.               PART 3419—MATCHING FUNDS
                                                      of the deletion is to remove the July 1                                                                       REQUIREMENT FOR AGRICULTURAL
                                                      date for action.                                        Paperwork Reduction Act                               RESEARCH AND EXTENSION
                                                         Additionally, one other technical                      The Department certifies that this                  CAPACITY FUNDS AT 1890 LAND-
                                                      correction is changing ‘‘shall’’ to                     revised proposed rule has been assessed               GRANT INSTITUTIONS, AND 1862
                                                      ‘‘must,’’ consistent with the plain                     in accordance with the requirements of                LAND-GRANT INSTITUTIONS IN
                                                      English provisions relating to                          the Paperwork Reduction Act (PRA), 44                 INSULAR AREAS
                                                      rulemaking.                                             U.S.C. 3501 et seq. The Department
                                                                                                              concludes that this proposed rule does                ■  1. The authority citation for part 3419
                                                      Executive Order 12866 and Executive                     not impose any new information                        is revised to read as follows:
                                                      Order 13563                                             collection requirements or change the                   Authority: 7 U.S.C. 3222d; 7 U.S.C. 343(e);
                                                         Executive Orders 12866 and 13563                     burden estimate on existing information               7 U.S.C. 361c; Pub. L. 107–171; Pub. L. 110–
                                                      direct agencies to assess all costs and                 collection requirements. In addition to               234; Pub. L. 113–79
                                                      benefits of available regulatory                        the SF–424 form families (i.e., Research              ■ 2. Amend § 3419.1 as follows:
                                                      alternatives and, if regulation is                      and Related and Mandatory) and the                    ■ a. Add a definition for ‘‘Capacity
                                                      necessary, to select regulatory                         SF–425 Federal Financial Report (FFR)                 funds’’;
                                                      approaches that maximize net benefits                   No. 0348–0061, NIFA has three                         ■ b. Revise the definition of ‘‘Eligible
                                                      (including potential economic,                          currently approved OMB information                    institution’’;
                                                      environmental, public health and safety                 collections associated with this                      ■ c. Remove the definition of ‘‘Formula
                                                      effects, distributive impacts, and                      rulemaking: OMB Information                           funds’’;
                                                                                                              Collection No. 0524- 0042, NIFA                       ■ d. Revise the definition of ‘‘Matching
                                                      equity). Executive Order 13563
                                                                                                              REEport; No. 0524–0041, NIFA                          funds’’;
                                                      emphasizes the importance of
                                                                                                              Application Review Process; and No.                   ■ e. Remove the definition of
                                                      quantifying the costs and benefits of
                                                                                                              0524–0026, Organizational Information.                ‘‘Qualifying educational activities’’
                                                      simplifying and harmonizing rules, and
                                                                                                                                                                       The addition and revisions read as
                                                      of promoting flexibility. This                          Unfunded Mandates Reform Act of 1995
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                                                                                                              and Executive Order 13132                             follows:
                                                      rulemaking has been determined to be
                                                      not significant for purposes of Executive                 The Department has reviewed this                    § 3419.1   Definitions.
                                                      Order 12866.                                            revised proposed rule in accordance                     As used in this part:
                                                      Executive Order 13771                                   with the requirements of Executive                      Capacity funds means agricultural
                                                                                                              Order No. 13132 and the Unfunded                      extension and research funds provided
                                                        This proposed rule is not expected to                 Mandates Reform Act of 1995, 2 U.S.C.                 by formula to the eligible institutions
                                                      be an EO 13771 regulatory action                        1501 et seq., and has found no potential              under sections 1444 and 1445 of the
                                                      because this rulemaking is not                          or substantial direct effects on the                  National Agricultural Research,
                                                      significant under EO 12866.                             States, on the relationship between the               Extension, and Teaching Policy Act of


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                                                                           Federal Register / Vol. 82, No. 217 / Monday, November 13, 2017 / Proposed Rules                                                 52253

                                                      1977 (NARETPA), as amended, or under                    up to 100% of the matching funds                      § 3419.7   [Redesignated as § 3419.8]
                                                      sections 3(b) and (c) of the Smith-Lever                requirements in 7 CFR 3419.2 for any                  ■ 8. Redesignate § 3419.7 as § 3419.8,
                                                      Act, 7 U.S.C. 343(b) and (c) or under                   fiscal year for an eligible institution in            and add a new § 3419.7 to read as
                                                      section 3 of the Hatch Act of 1887, 7                   an insular area.                                      follows:
                                                      U.S.C. 361c.                                               (c) The criteria to waive the
                                                         Eligible institution means a college or                                                                    § 3419.7   Reporting of matching funds.
                                                                                                              applicable matching requirement for
                                                      university eligible to receive funds                    1890 land-grant institutions and 1862                   Institutions will report all capacity
                                                      under the Act of August 30, 1890 (7                     land-grant institutions in insular areas is           matching funds expended annually
                                                      U.S.C. 321 et seq.) (commonly known as                  demonstration of one or more of the                   using Standard Form (SF) 425, in
                                                      the Second Morrill Act), including                      following:                                            accordance with 7 CFR 3430.56(a).
                                                      Central State University, Tuskegee                                                                            ■ 9. Revise newly redesignated § 3419.8
                                                      University, and West Virginia State                        (1) Impacts from natural disaster,                 to read as follows:
                                                      University (1890 land-grant                             flood, fire, tornado, hurricane, or
                                                                                                              drought;                                              § 3419.8   Redistribution of Funds.
                                                      institutions), and a college or university
                                                      designated under the Act of July 2, 1862                   (2) State and/or institution facing a                Unmatched research and extension
                                                      (7 U.S.C. 301, et seq.) (commonly                       financial crisis; or                                  funds will be reapportioned in
                                                      known as the First Morrill Act) and                        (3) Lack of matching funds after                   accordance with the research and
                                                      located in the Commonwealth of Puerto                   demonstration of good faith efforts to                extension statutory distribution
                                                      Rico and the insular areas of American                  obtain funds.                                         formulas applicable to the 1890 and
                                                      Samoa, Guam, Micronesia, Northern                                                                             1862 land-grant institutions in insular
                                                                                                                 (d) Approval or disapproval of the                 areas, respectively. Any redistribution
                                                      Marianas, and the Virgin Islands (1862                  request for a waiver will be based on the
                                                      land-grant institutions in insular areas).                                                                    of funds must be subject to the same
                                                                                                              application submitted, as defined under               matching requirement under § 3419.2.
                                                         Matching funds means funds from                      § 3419.4.
                                                      non-Federal sources, including those                                                                            Done at Washington, DC, on November 2,
                                                                                                              ■ 5. Add new § 3419.4 to read as
                                                      made available by the State to the                                                                            2017.
                                                      eligible institutions, for programs or                  follows:
                                                                                                                                                                    Sonny Ramaswamy,
                                                      activities that fall within the purposes of             § 3419.4 Applications for waivers for both            NIFA Director, National Institute of Food and
                                                      agricultural research and cooperative                   1890 land-grant institutions and 1862 land-           Agriculture.
                                                      extension under: sections 1444 and                      grant institutions in insular areas.                  [FR Doc. 2017–24327 Filed 11–9–17; 8:45 am]
                                                      1445 of NARETPA; the Hatch Act of                          Application for waivers for both 1890              BILLING CODE 3410–22–P
                                                      1887; and the Smith-Lever Act.                          land-grant institutions and 1862 land-
                                                      *      *     *     *     *                              grant institutions in insular areas. The
                                                      ■ 2. Amend § 3419.2 as follows:                         president of the eligible institution must            NATIONAL INDIAN GAMING
                                                      ■ a. Remove the introductory text;
                                                                                                              submit any request for a waiver for                   COMMISSION
                                                      ■ b. Revise Paragraphs (a) and (b).
                                                         The revisions read as follows:                       matching requirements. A waiver
                                                                                                              application must include the name of                  25 CFR Part 514
                                                      § 3419.2   Matching funds requirement.                  the eligible institution, the type of
                                                                                                              Federal capacity funds (i.e. research,                Fees
                                                        (a) 1890 land-grant institutions: The
                                                      distribution of capacity funds are                      extension, Hatch, etc.), appropriate                  AGENCY:  National Indian Gaming
                                                      subject to a matching requirement.                      fiscal year, the basis for the request (e.g.          Commission.
                                                      Matching funds will equal not less than                 one or more of the criteria identified in             ACTION: Proposed rule.
                                                      100% of the capacity funds to be                        § 3419.3); current supporting
                                                      distributed to the institution.                         documentation, where current is                       SUMMARY:   The National Indian Gaming
                                                        (b) 1862 land-grant institutions in                   defined as within the past two years                  Commission proposes to amend its fee
                                                      insular areas: The distribution of                      from the date of the letter requesting the            regulations. The proposed rule would
                                                      capacity funds are subject to a matching                waiver; and the amount of the request.                require the Commission to adopt annual
                                                      requirement. Matching funds will equal                                                                        fee rates no later than November 1 of
                                                      not less than 50% of the capacity funds                 § 3419.5    [Amended]                                 each year. In addition, the proposed rule
                                                      to be distributed to the institution.                   ■ 6. Amend § 3419.5 by removing the                   defines the fiscal year of the gaming
                                                      *     *     *    *      *                               word ‘‘formula’’ and adding, in its                   operation that will be used for
                                                                                                              place, the word ‘‘capacity’’.                         calculating the fee payments. Finally,
                                                      § 3419.3   [Removed]                                                                                          the proposed rule includes additional
                                                                                                              ■ 7. Revise § 3419.6 to read as follows:
                                                      ■   3. Remove § 3419.3                                                                                        revisions intended to clarify the fee
                                                                                                              § 3419.6    Use of matching funds.                    calculation and submission process for
                                                      § 3419.4   [Redesignated as § 3419.3]
                                                                                                                 The required matching funds for the                gaming operations.
                                                      ■ 4. Redesignate § 3419.4 as § 3419.3
                                                                                                              capacity programs must be used by an                  DATES: The agency must receive
                                                      and revise it to read as follows:
                                                                                                              eligible institution for the same purpose             comments on or before December 28,
                                                      § 3419.3   Limited waiver authority.                    as Federal award dollars: Agricultural                2017.
                                                         (a) 1890 land-grant institutions: The                research and extension activities that
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                                                                                                                                                                    ADDRESSES: You may send comments by
                                                      Secretary may waive the matching funds                  have been approved in the plan of work                any of the following methods:
                                                      requirement in 7 CFR 3419.2 above the                   required under sections 1445(c) and                     • Email: 514_Comments@nigc.gov.
                                                      50% level for any fiscal year for an                    1444(d) of the National Agricultural                    • Fax: 202–632–7066.
                                                      eligible institution of a State if the                  Research, Extension, and Teaching                       • Mail: National Indian Gaming
                                                      Secretary determines that the State will                Policy Act of 1977, section 7 of the                  Commission, 1849 C Street NW., MS
                                                      be unlikely to satisfy the matching                     Hatch Act of 1887, and section 4 of the               1621, Washington, DC 20240.
                                                      requirement.                                            Smith-Lever Act. For all programs,                      • Hand Delivery: National Indian
                                                         (b) 1862 land-grant institutions in                  tuition dollars and student fees may not              Gaming Commission, 90 K Street NE.,
                                                      insular areas: The Secretary may waive                  be used as matching funds.                            Suite 200, Washington, DC 20002,


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Document Created: 2017-11-10 01:18:23
Document Modified: 2017-11-10 01:18:23
CategoryRegulatory Information
CollectionFederal Register
sudoc ClassAE 2.7:
GS 4.107:
AE 2.106:
PublisherOffice of the Federal Register, National Archives and Records Administration
SectionProposed Rules
ActionProposed rule and withdrawal of proposed rule.
DatesAs of November 13, 2017, the proposed rule published April 29, 2003, at 68 FR 23013, is withdrawn. Submit comments on the proposed rule on or before January 12, 2018.
ContactMaggie Ewell, Senior Policy Advisor, 202-401-0222.
FR Citation82 FR 52250 
RIN Number0524-AA68
CFR AssociatedAgricultural Extension and Agricultural Research; 1890 Land-Grant Institutions; Insular Areas; 1862 Land-Grant Institutions in Insular Areas; Matching Funds

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