83_FR_8435 83 FR 8396 - Assistance to States for the Education of Children With Disabilities; Preschool Grants for Children With Disabilities

83 FR 8396 - Assistance to States for the Education of Children With Disabilities; Preschool Grants for Children With Disabilities

DEPARTMENT OF EDUCATION

Federal Register Volume 83, Issue 39 (February 27, 2018)

Page Range8396-8399
FR Document2018-04102

In order to ensure the Department's ``Equity in IDEA'' or ``significant disproportionality'' regulations effectively address significant disproportionality, the Department proposes to postpone the compliance date by two years, from July 1, 2018, to July 1, 2020. The Department also proposes to postpone the date for including children ages three through five in the analysis of significant disproportionality with respect to the identification of children as children with disabilities and as children with a particular impairment from July 1, 2020, to July 1, 2022.

Federal Register, Volume 83 Issue 39 (Tuesday, February 27, 2018)
[Federal Register Volume 83, Number 39 (Tuesday, February 27, 2018)]
[Proposed Rules]
[Pages 8396-8399]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2018-04102]


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DEPARTMENT OF EDUCATION

34 CFR Part 300

RIN 1820-AB77
[Docket ID ED-2017-OSERS-0128]


Assistance to States for the Education of Children With 
Disabilities; Preschool Grants for Children With Disabilities

AGENCY: Office of Special Education and Rehabilitative Services 
(OSERS), Department of Education.

ACTION: Notice of proposed rulemaking.

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SUMMARY: In order to ensure the Department's ``Equity in IDEA'' or 
``significant disproportionality'' regulations effectively address 
significant disproportionality, the Department proposes to postpone the 
compliance date by two years, from July 1, 2018, to July 1, 2020. The 
Department also proposes to postpone the date for including children 
ages three through five in the analysis of significant 
disproportionality with respect to the identification of children as 
children with disabilities and as children with a particular impairment 
from July 1, 2020, to July 1, 2022.

DATES: We must receive your comments on or before May 14, 2018.

ADDRESSES: Submit your comments through the Federal eRulemaking Portal 
or via postal mail, commercial delivery, or hand delivery. We will not 
accept comments by fax or email. To ensure that we do not receive 
duplicate copies, please submit your comments only once. In addition, 
please include the Docket ID at the top of your comments.
     Federal eRulemaking Portal: Go to www.regulations.gov to 
submit your comments electronically. Information on using 
Regulations.gov, including instructions for accessing agency documents, 
submitting comments, and viewing the docket is available on the site 
under the ``Help'' tab.
     Postal Mail, Commercial Delivery, or Hand Delivery: The 
Department strongly encourages commenters to submit their comments 
electronically. However, if you mail or deliver your comments in 
response to this request, address them to Johnny W. Collett, Assistant 
Secretary, Office of Special Education and Rehabilitation Services, 
U.S. Department of Education, 400 Maryland Avenue SW, Room 5107, 
Potomac Center Plaza, Washington, DC 20202-2500.
    Privacy Note: The Department's policy is to make all comments 
received from members of the public available for public viewing in 
their entirety on the Federal eRulemaking Portal at 
www.regulations.gov. Therefore, commenters should be careful to include 
in their comments only information that they wish to make publicly 
available.

FOR FURTHER INFORMATION CONTACT: Kate Friday, U.S. Department of 
Education, 400 Maryland Avenue SW, Room 5104, Potomac Center Plaza, 
Washington, DC 20202-2500. Telephone: (202) 245-7605, or by email at: 
[email protected].
    If you use a telecommunications device for the deaf (TDD) or a text 
telephone (TTY), call the Federal Relay Service, toll free, at 1-800-
877-8339.

SUPPLEMENTARY INFORMATION: 
    Invitation to Comment: We invite you to submit comments regarding 
this notice of proposed rulemaking. We will consider comments on 
proposed delayed compliance dates only and will not consider comments 
on the text or substance of the final regulations. See ADDRESSES for 
instructions on how to submit comments.
    During and after the comment period, you may inspect all public 
comments about this notice of proposed rulemaking by accessing 
Regulations.gov. You may also inspect the comments in person in Room 
5104, 400 Maryland Avenue SW, Potomac Center Plaza, Washington, DC, 
between 8:30 a.m. and 4:00 p.m. Washington, DC time, Monday through 
Friday of each week, except Federal holidays. If you want to schedule 
time to inspect comments, please contact the person listed under FOR 
FURTHER INFORMATION CONTACT.
    Assistance to Individuals with Disabilities in Reviewing the 
Rulemaking Record: On request, we will provide an appropriate 
accommodation or auxiliary aid to an individual with a disability who 
needs assistance to review the comments or other documents in the 
public rulemaking record for this notice of proposed rulemaking. If you 
want to schedule an appointment for this type of accommodation or 
auxiliary aid, please contact the person listed under FOR FURTHER 
INFORMATION CONTACT.
    On February 24, 2017, President Trump signed Executive Order 13777, 
``Enforcing the Regulatory Reform Agenda,'' which established a policy 
``to alleviate unnecessary regulatory burdens'' on the American people. 
Section 3(a) of the Executive Order directed each Federal agency to 
establish a regulatory reform task force, the duty of which is to 
evaluate existing regulations and ``make recommendations to the agency 
head regarding their repeal, replacement, or modification.'' On June 
22, 2017, therefore, the Department published a notice in the Federal 
Register (82 FR 28431) seeking input on regulations that may be 
appropriate for repeal, replacement, or modification.
    As part of that regulatory review exercise, OSERS is reviewing the 
Assistance to States for the Education of Children With Disabilities; 
Preschool Grants for Children With Disabilities regulations (the 
``Equity in IDEA'' or ``significant disproportionality'' regulations), 
published in the Federal Register on December 19, 2016 (81 FR 92376). 
We are, therefore, proposing to postpone the compliance by two years in 
order that the Department may review the regulation to ensure it 
effectively addresses significant disproportionality.
    Statute: Section 618(d)(1) of IDEA (20 U.S.C. 1418(d)(1)) requires 
every State that receives IDEA Part B funds to

[[Page 8397]]

collect and examine data to determine if significant disproportionality 
based on race or ethnicity exists in the State or the LEAs of the State 
with respect to (a) the identification of children as children with 
disabilities; (b) the placement in particular educational settings of 
such children; and (c) the incident, duration, and type of disciplinary 
actions, including suspensions and expulsions. IDEA does not define 
``significant disproportionality'' or instruct how data must be 
collected and examined.
    Current Regulations: The current Equity in IDEA regulations 
effectively define ``significant disproportionality.'' Sections 
300.646(b) and 300.647 establish a standard methodology States must use 
to determine whether significant disproportionality based on race and 
ethnicity is occurring in the State and in its local educational 
agencies (LEAs) with respect to the identification, placement, and 
discipline of children with disabilities.
    In addition, if a State determines that there is significant 
disproportionality occurring in an LEA, section 618(d)(2)(B) of the 
Individuals with Disabilities Education Act (IDEA) and Sec.  300.646(d) 
require the LEA to reserve 15 percent of its Part B funds to be used 
for comprehensive coordinated early intervening services (comprehensive 
CEIS). Section 300.646(d)(1)(ii) requires the LEA to identify and 
address the factors contributing to significant disproportionality as 
part of implementing comprehensive CEIS. Section 300.646(d)(2) expands 
the populations of children eligible for these services to include 
children, with and without disabilities, from age 3 through grade 12.
    The significant disproportionality regulations became effective 
January 18, 2017, but the Department delayed the date for compliance. 
States are not required to begin complying until July 1, 2018, and are 
not required to include children ages three through five in their 
analyses of significant disproportionality with respect to the 
identification of children as children with disabilities and as 
children with a particular impairment until July 1, 2020.
    Proposed Regulations: The Department proposes to postpone the 
compliance date for implementing the regulations to July 1, 2020 from 
July 1, 2018. The Department also proposes to postpone the compliance 
date for including children ages three through five in the significant 
disproportionality analysis to July 1, 2022, from July 1, 2020.
    Reasons: As the Department noted in the Notice of Proposed 
Rulemaking (NPRM) proposing the significant disproportionality 
regulations and again in the final rule adopting them, the status quo 
for school districts across the country properly identifying children 
with disabilities is troubling. In 2012, American Indian and Alaska 
Native students were 60 percent more likely to be identified for an 
intellectual disability than children in other racial or ethnic groups, 
while black children were more than twice as likely as other groups to 
be so identified. Similarly, American Indian or Alaska Native students 
were 90 percent more likely, black students were 50 percent more 
likely, and Hispanic students were 40 percent more likely to be 
identified as having a learning disability. In addition, black children 
were more than twice as likely to be identified with an emotional 
disturbance. And yet, in SY 2012-13, only 28 States and the District of 
Columbia identified any LEAs with significant disproportionality, and 
of the 491 LEAs identified, 75 percent were located in only seven 
States. Of the States that identified LEAs with significant 
disproportionality, only the District of Columbia and four States 
identified significant disproportionality in all three categories of 
analysis--identification, placement, and in discipline. 81 FR 92380.
    The Department is concerned, however, given the public comments it 
has received in response to its general solicitation in 2017 on 
regulatory reform, that the Equity in IDEA regulations may not 
appropriately address the problem of significant disproportionality. We 
therefore propose to postpone by two years the compliance dates for the 
regulations so that we may review all of the issues raised and 
determine how to better serve children with disabilities.
    A number of commenters suggested, for example, that the Department 
lacks the statutory authority under IDEA to require States to use a 
standard methodology, pointing out as well that the Department's 
previous position, adopted in the 2006 regulations implementing the 
2004 amendments to IDEA, was that States are in the best position to 
evaluate factors affecting determinations of significant 
disproportionality.
    Similarly, one detailed comment expressed concern that the standard 
methodology improperly looks at group outcomes through statistical 
measures rather than focusing on what is at the foundation of IDEA, 
namely the needs of each individual child and on the appropriateness of 
individual identifications, placements, or discipline. Further, a 
number of commenters suggested that the standard methodology would 
provide incentives to LEAs to establish numerical quotas on the number 
of children who can be identified as children with disabilities, 
assigned to certain classroom placements, or disciplined in certain 
ways.
    Finally, still other commenters suggested that the Department could 
not accurately assess the impact of the regulations given that it did 
not provide any standards by which it would assess the required 
``reasonableness'' of State risk ratio thresholds and that calculations 
of significant disproportionality should be better aligned with State 
Performance Plan indicators, including the percent of districts that 
have a significant discrepancy, by race or ethnicity, in the rate of 
suspensions and expulsion for children with disabilities (Indicator 
4B), and the percent of districts with disproportionate representation 
of racial and ethnic groups in special education and related services 
(Indicator 9) and in specific disability categories (Indicator 10) that 
is the result of inappropriate identification.

Executive Orders 12866, 13563, and 13771

Regulatory Impact Analysis

    Under Executive Order 12866, the Secretary must determine whether 
this regulatory action is ``significant'' and, therefore, subject to 
the requirements of the Executive order and subject to review by the 
Office of Management and Budget (OMB). Section 3(f) of Executive Order 
12866 defines a ``significant regulatory action'' as an action likely 
to result in a rule that may--
    (1) Have an annual effect on the economy of $100 million or more, 
or adversely affect a sector of the economy, productivity, competition, 
jobs, the environment, public health or safety, or State, local or 
tribal governments or communities in a material way (also referred to 
as an ``economically significant'' rule);
    (2) Create serious inconsistency or otherwise interfere with an 
action taken or planned by another agency;
    (3) Materially alter the budgetary impacts of entitlement grants, 
user fees, or loan programs or the rights and obligations of recipients 
thereof; or
    (4) Raise novel legal or policy issues arising out of legal 
mandates, the President's priorities, or the principles stated in the 
Executive order.
    This proposed regulatory action is a significant regulatory action 
subject to review by OMB under section 3(f) of Executive Order 12866.
    We have also reviewed these regulations under Executive Order

[[Page 8398]]

13563, which supplements and explicitly reaffirms the principles, 
structures, and definitions governing regulatory review established in 
Executive Order 12866. To the extent permitted by law, Executive Order 
13563 requires that an agency--
    (1) Propose or adopt regulations only upon a reasoned determination 
that their benefits justify their costs (recognizing that some benefits 
and costs are difficult to quantify);
    (2) Tailor their regulations to impose the least burden on society, 
consistent with obtaining regulatory objectives and taking into 
account--among other things, and to the extent practicable--the costs 
of cumulative regulations;
    (3) In choosing among alternative regulatory approaches, select 
those approaches that maximize net benefits (including potential 
economic, environmental, public health and safety, and other 
advantages; distributive impacts; and equity);
    (4) To the extent feasible, specify performance objectives, rather 
than specifying the behavior or manner of compliance that regulated 
entities must adopt; and
    (5) Identify and assess available alternatives to direct 
regulation, including providing economic incentives--such as user fees 
or marketable permits--to encourage the desired behavior, or provide 
information that enables the public to make choices.
    Executive Order 13563 also requires an agency ``to use the best 
available techniques to quantify anticipated present and future 
benefits and costs as accurately as possible.'' The Office of 
Information and Regulatory Affairs of OMB has emphasized that these 
techniques may include ``identifying changing future compliance costs 
that might result from technological innovation or anticipated 
behavioral changes.''
    We are issuing this proposed regulatory action only upon a reasoned 
determination that its benefits justify its costs. Based on the 
analysis that follows, the Department believes that these regulations 
are consistent with the principles in Executive Order 13563.
    We also have determined that this regulatory action would not 
unduly interfere with State, local, and Tribal governments in the 
exercise of their governmental functions.
    In this regulatory impact analysis we discuss the need for 
regulatory action, alternatives considered, the potential costs and 
benefits, net budget impacts, assumptions, limitations, and data 
sources.

Need for These Regulations

    As explained in the previous section, we are proposing this 
regulatory action in order to delay implementation of a regulation that 
we are concerned may not meet its fundamental purpose, namely to 
properly identify and address significant disproportionality among 
children with disabilities. We propose the delay as well to give the 
Department, the States, and the public additional time to study the 
questions involved and determine how to better serve children with 
disabilities.

Alternatives Considered

    The Department considered proposing a delay of the compliance dates 
for different lengths of time and decided upon two years as an 
appropriate length, given a realistic measure of how long it takes the 
agency to develop, propose, and promulgate complex regulations. In the 
Department's experience, one year is too little time as a general 
matter and, for these regulations in particular, given the amount of 
work on this issue the Department has already done, three years is too 
long.

Analysis of Costs and Benefits

    The Department has analyzed the costs of complying with the 
proposed regulatory action. While postponing the obligation to comply 
with the regulations would not place any new requirements on States, 
the delay in the compliance date would reduce costs over the 10 years 
relative to the baseline set out in the December 2016 final rule.
    The Department estimates that this regulatory action would generate 
cost savings between $10.9 and $11.5 million, with a reduction in 
transfers of between $59.6 and $63.0 million. These savings are driven 
by two separate, but related factors: Fewer States implementing the 
regulations during the 2018-19 and 2019-20 school years and, as a 
result, the lower number of LEAs identified as having significant 
disproportionality in each of those years under the standard 
methodology.
    In developing our estimates, the Department assumed that a small 
number of States, who may already be prepared, or nearly prepared, to 
implement the regulations on July 1, 2018 will continue to do so, 
regardless of any delay in the compliance date. We also assume that a 
subset of States will implement the regulations in the following school 
year (2019-20), with the remainder of States waiting until the 2020 
compliance date to implement the regulations. We assume that 10 States 
would implement the revised regulations on July 1, 2018, five States 
would implement them as of July 1, 2019, and the remaining 40 would 
wait until July 1, 2020.
    Further, the Department estimates that the number of LEAs 
identified with significant disproportionality in each year as a result 
of the revised regulations would be reduced due to the delay in 
implementation. Previously, the Department estimated that 400 new LEAs 
would be identified each year. We estimate that the delay in compliance 
date would result in only 80 additional LEAs being identified in the 
2018-2019 school year (a reduction of 320) and only 100 additional LEAs 
identified in the 2019-20 school year (a reduction of 300). These 
estimates assume that the number of additional LEAs identified each 
year is roughly proportional to the number of States that implement the 
revised regulations.\1\
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    \1\ This calculation of savings includes a change to the 
baseline in the December 2016 final rule due to an incorrect 
calculation in the 3 percent discount rate, shown in detail in the 
cost analysis spreadsheet posted in the docket with this document. 
This calculation of cost savings does not change any of the 
assumptions regarding wage rates, hours of burden, or number of 
personnel that were discussed in the final rule. The assumptions 
upon which the cost-benefit calculations in the final rule are based 
are being evaluated by the Department as part of the review of the 
final rule itself.
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Executive Order 13771

    Consistent with Executive Order 13771 (82 FR 9339, February 3, 
2017), we have estimated that this proposed regulatory action will not 
impose any additional costs.

Regulatory Flexibility Act Certification

    The Secretary certifies that these proposed regulations would not 
have a significant economic impact on a substantial number of small 
entities.
    The U.S. Small Business Administration (SBA) Size Standards define 
``small entities'' as for-profit or nonprofit institutions with total 
annual revenue below $7,000,000 or, if they are institutions controlled 
by small governmental jurisdictions (that are comprised of cities, 
counties, towns, townships, villages, school districts, or special 
districts), with a population of less than 50,000. These proposed 
regulations would affect all LEAs, including the estimated 17,371 LEAs 
that meet the definition of small entities. However, we have determined 
that the proposed regulations would not have a significant economic 
impact on these small entities. As stated earlier, this proposed 
regulatory action imposes no new costs.

[[Page 8399]]

Paperwork Reduction Act of 1995

    This regulatory action does not contain any information collection 
requirements.

Intergovernmental Review

    This program is subject to Executive Order 12372 and the 
regulations in 34 CFR part 79. One of the objectives of the Executive 
order is to foster an intergovernmental partnership and a strengthened 
federalism. The Executive order relies on processes developed by State 
and local governments for coordination and review of proposed Federal 
financial assistance.
    This document provides early notification of the Department's 
specific plans and actions for this program.
    Accessible Format: Individuals with disabilities can obtain this 
document in an accessible format (e.g., braille, large print, 
audiotape, or compact disc) on request to the contact person listed 
under FOR FURTHER INFORMATION CONTACT.
    Electronic Access to This Document: The official version of this 
document is the document published in the Federal Register. Free 
internet access to the official edition of the Federal Register and the 
Code of Federal Regulations is available via the Federal Digital System 
at: www.thefederalregister.org/fdsys. At this site you can view this document, as well 
as all other documents of this Department published in the Federal 
Register, in text or Portable Document Format (PDF). To use PDF you 
must have Adobe Acrobat Reader, which is available free at the site.
    You may also access documents of the Department published in the 
Federal Register by using the article search feature at: 
www.federalregister.gov. Specifically, through the advanced search 
feature at this site, you can limit your search to documents published 
by the Department.

List of Subjects in 34 CFR Part 300

    Administrative practice and procedure, Education of individuals 
with disabilities, Elementary and secondary education, Equal 
educational opportunity, Grant programs--education, Privacy, Private 
schools, Reporting and recordkeeping requirements.

    Dated: February 23, 2018.
Johnny W. Collett,
Assistant Secretary for Special Education and Rehabilitative Services.
[FR Doc. 2018-04102 Filed 2-23-18; 4:15 pm]
 BILLING CODE 4000-01-P



                                                 8396                  Federal Register / Vol. 83, No. 39 / Tuesday, February 27, 2018 / Proposed Rules

                                                 actions, including further investigations that          also proposes to postpone the date for                substance of the final regulations. See
                                                 should be taken to ensure that the matter is            including children ages three through                 ADDRESSES for instructions on how to
                                                 fully and fairly addressed. When responding             five in the analysis of significant                   submit comments.
                                                 to the complainant, DCCA will also provide              disproportionality with respect to the                   During and after the comment period,
                                                 a final copy of the response letter to the                                                                    you may inspect all public comments
                                                 Ombudsman.
                                                                                                         identification of children as children
                                                    If the Ombudsman receives a complaint                with disabilities and as children with a              about this notice of proposed
                                                 regarding DCCA’s review of an appeal, the               particular impairment from July 1, 2020,              rulemaking by accessing
                                                 Ombudsman will collect and review the                   to July 1, 2022.                                      Regulations.gov. You may also inspect
                                                 complaint documents and seek any other                  DATES: We must receive your comments                  the comments in person in Room 5104,
                                                 relevant information. The Ombudsman may                 on or before May 14, 2018.                            400 Maryland Avenue SW, Potomac
                                                 also consult Board and Reserve Bank staff to
                                                                                                         ADDRESSES: Submit your comments
                                                                                                                                                               Center Plaza, Washington, DC, between
                                                 discuss the details of the previous complaint                                                                 8:30 a.m. and 4:00 p.m. Washington, DC
                                                 investigations. The Ombudsman is                        through the Federal eRulemaking Portal
                                                                                                         or via postal mail, commercial delivery,              time, Monday through Friday of each
                                                 responsible for responding to the                                                                             week, except Federal holidays. If you
                                                 complainant with its determination. As                  or hand delivery. We will not accept
                                                                                                                                                               want to schedule time to inspect
                                                 appropriate, the Ombudsman will contact the             comments by fax or email. To ensure
                                                                                                                                                               comments, please contact the person
                                                 appropriate Board division director and                 that we do not receive duplicate copies,
                                                 Reserve Bank staff with feedback or concerns.                                                                 listed under FOR FURTHER INFORMATION
                                                                                                         please submit your comments only
                                                    Safeguards. These policies, processes, and                                                                 CONTACT.
                                                                                                         once. In addition, please include the                    Assistance to Individuals with
                                                 practices are intended as safeguards to                 Docket ID at the top of your comments.
                                                 encourage complainants to come forward                                                                        Disabilities in Reviewing the
                                                                                                            • Federal eRulemaking Portal: Go to
                                                 with issues or complaints related to the                                                                      Rulemaking Record: On request, we will
                                                                                                         www.regulations.gov to submit your
                                                 Federal Reserve System’s regulatory                                                                           provide an appropriate accommodation
                                                 activities.                                             comments electronically. Information
                                                                                                                                                               or auxiliary aid to an individual with a
                                                    To the extent possible, the Ombudsman                on using Regulations.gov, including                   disability who needs assistance to
                                                 will honor requests to keep confidential the            instructions for accessing agency                     review the comments or other
                                                 identity of a complaining party. It must be             documents, submitting comments, and                   documents in the public rulemaking
                                                 recognized, however, that it may not be                 viewing the docket is available on the
                                                 possible for the Ombudsman to resolve
                                                                                                                                                               record for this notice of proposed
                                                                                                         site under the ‘‘Help’’ tab.                          rulemaking. If you want to schedule an
                                                 certain complaints, including complaints of                • Postal Mail, Commercial Delivery,
                                                 retaliation, if the Ombudsman cannot                                                                          appointment for this type of
                                                                                                         or Hand Delivery: The Department
                                                 disclose the identity of the complaining party                                                                accommodation or auxiliary aid, please
                                                                                                         strongly encourages commenters to                     contact the person listed under FOR
                                                 to other members of Federal Reserve staff.
                                                    Procedures. A party may contact the                  submit their comments electronically.                 FURTHER INFORMATION CONTACT.
                                                 Ombudsman at any time regarding concerns                However, if you mail or deliver your                     On February 24, 2017, President
                                                 or issues resulting from the regulatory                 comments in response to this request,                 Trump signed Executive Order 13777,
                                                 activities of the Board or the Reserve Banks            address them to Johnny W. Collett,                    ‘‘Enforcing the Regulatory Reform
                                                 by calling 1-800–337–0429, by sending a fax             Assistant Secretary, Office of Special                Agenda,’’ which established a policy ‘‘to
                                                 to 202–530–6208, by writing to the Office of            Education and Rehabilitation Services,                alleviate unnecessary regulatory
                                                 the Ombudsman, Board of Governors of the                U.S. Department of Education, 400
                                                 Federal Reserve System, Washington, D.C.                                                                      burdens’’ on the American people.
                                                                                                         Maryland Avenue SW, Room 5107,                        Section 3(a) of the Executive Order
                                                 20551, or by sending an email to
                                                                                                         Potomac Center Plaza, Washington, DC                  directed each Federal agency to
                                                 Ombudsman@frb.gov.
                                                                                                         20202–2500.                                           establish a regulatory reform task force,
                                                 [FR Doc. 2018–03907 Filed 2–26–18; 8:45 am]                Privacy Note: The Department’s                     the duty of which is to evaluate existing
                                                 BILLING CODE 6210–01–P                                  policy is to make all comments received               regulations and ‘‘make
                                                                                                         from members of the public available for              recommendations to the agency head
                                                                                                         public viewing in their entirety on the               regarding their repeal, replacement, or
                                                 DEPARTMENT OF EDUCATION                                 Federal eRulemaking Portal at                         modification.’’ On June 22, 2017,
                                                                                                         www.regulations.gov. Therefore,                       therefore, the Department published a
                                                 34 CFR Part 300                                         commenters should be careful to                       notice in the Federal Register (82 FR
                                                 RIN 1820–AB77                                           include in their comments only                        28431) seeking input on regulations that
                                                                                                         information that they wish to make                    may be appropriate for repeal,
                                                 [Docket ID ED–2017–OSERS–0128]                          publicly available.                                   replacement, or modification.
                                                                                                         FOR FURTHER INFORMATION CONTACT: Kate                    As part of that regulatory review
                                                 Assistance to States for the Education
                                                                                                         Friday, U.S. Department of Education,                 exercise, OSERS is reviewing the
                                                 of Children With Disabilities;
                                                                                                         400 Maryland Avenue SW, Room 5104,                    Assistance to States for the Education of
                                                 Preschool Grants for Children With
                                                                                                         Potomac Center Plaza, Washington, DC                  Children With Disabilities; Preschool
                                                 Disabilities
                                                                                                         20202–2500. Telephone: (202) 245–                     Grants for Children With Disabilities
                                                 AGENCY:  Office of Special Education and                7605, or by email at: Kate.Friday@                    regulations (the ‘‘Equity in IDEA’’ or
                                                 Rehabilitative Services (OSERS),                        ed.gov.                                               ‘‘significant disproportionality’’
                                                 Department of Education.                                   If you use a telecommunications                    regulations), published in the Federal
                                                 ACTION: Notice of proposed rulemaking.                  device for the deaf (TDD) or a text                   Register on December 19, 2016 (81 FR
                                                                                                         telephone (TTY), call the Federal Relay               92376). We are, therefore, proposing to
daltland on DSKBBV9HB2PROD with PROPOSALS




                                                 SUMMARY:   In order to ensure the                       Service, toll free, at 1–800–877–8339.                postpone the compliance by two years
                                                 Department’s ‘‘Equity in IDEA’’ or                      SUPPLEMENTARY INFORMATION:                            in order that the Department may
                                                 ‘‘significant disproportionality’’                         Invitation to Comment: We invite you               review the regulation to ensure it
                                                 regulations effectively address                         to submit comments regarding this                     effectively addresses significant
                                                 significant disproportionality, the                     notice of proposed rulemaking. We will                disproportionality.
                                                 Department proposes to postpone the                     consider comments on proposed                            Statute: Section 618(d)(1) of IDEA (20
                                                 compliance date by two years, from July                 delayed compliance dates only and will                U.S.C. 1418(d)(1)) requires every State
                                                 1, 2018, to July 1, 2020. The Department                not consider comments on the text or                  that receives IDEA Part B funds to


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                                                                       Federal Register / Vol. 83, No. 39 / Tuesday, February 27, 2018 / Proposed Rules                                            8397

                                                 collect and examine data to determine if                disproportionality regulations and again              methodology would provide incentives
                                                 significant disproportionality based on                 in the final rule adopting them, the                  to LEAs to establish numerical quotas
                                                 race or ethnicity exists in the State or                status quo for school districts across the            on the number of children who can be
                                                 the LEAs of the State with respect to (a)               country properly identifying children                 identified as children with disabilities,
                                                 the identification of children as children              with disabilities is troubling. In 2012,              assigned to certain classroom
                                                 with disabilities; (b) the placement in                 American Indian and Alaska Native                     placements, or disciplined in certain
                                                 particular educational settings of such                 students were 60 percent more likely to               ways.
                                                 children; and (c) the incident, duration,               be identified for an intellectual                        Finally, still other commenters
                                                 and type of disciplinary actions,                       disability than children in other racial              suggested that the Department could not
                                                 including suspensions and expulsions.                   or ethnic groups, while black children                accurately assess the impact of the
                                                 IDEA does not define ‘‘significant                      were more than twice as likely as other               regulations given that it did not provide
                                                 disproportionality’’ or instruct how data               groups to be so identified. Similarly,                any standards by which it would assess
                                                 must be collected and examined.                         American Indian or Alaska Native                      the required ‘‘reasonableness’’ of State
                                                    Current Regulations: The current                     students were 90 percent more likely,                 risk ratio thresholds and that
                                                 Equity in IDEA regulations effectively                  black students were 50 percent more                   calculations of significant
                                                 define ‘‘significant disproportionality.’’              likely, and Hispanic students were 40                 disproportionality should be better
                                                 Sections 300.646(b) and 300.647                         percent more likely to be identified as               aligned with State Performance Plan
                                                 establish a standard methodology States                 having a learning disability. In addition,            indicators, including the percent of
                                                 must use to determine whether                           black children were more than twice as                districts that have a significant
                                                 significant disproportionality based on                 likely to be identified with an emotional             discrepancy, by race or ethnicity, in the
                                                 race and ethnicity is occurring in the                  disturbance. And yet, in SY 2012–13,                  rate of suspensions and expulsion for
                                                 State and in its local educational                      only 28 States and the District of                    children with disabilities (Indicator 4B),
                                                 agencies (LEAs) with respect to the                     Columbia identified any LEAs with                     and the percent of districts with
                                                 identification, placement, and                          significant disproportionality, and of the            disproportionate representation of racial
                                                 discipline of children with disabilities.               491 LEAs identified, 75 percent were                  and ethnic groups in special education
                                                    In addition, if a State determines that              located in only seven States. Of the                  and related services (Indicator 9) and in
                                                 there is significant disproportionality                 States that identified LEAs with                      specific disability categories (Indicator
                                                 occurring in an LEA, section                            significant disproportionality, only the              10) that is the result of inappropriate
                                                 618(d)(2)(B) of the Individuals with                    District of Columbia and four States                  identification.
                                                 Disabilities Education Act (IDEA) and                   identified significant disproportionality
                                                 § 300.646(d) require the LEA to reserve                                                                       Executive Orders 12866, 13563, and
                                                                                                         in all three categories of analysis—                  13771
                                                 15 percent of its Part B funds to be used               identification, placement, and in
                                                 for comprehensive coordinated early                     discipline. 81 FR 92380.                              Regulatory Impact Analysis
                                                 intervening services (comprehensive                        The Department is concerned,                         Under Executive Order 12866, the
                                                 CEIS). Section 300.646(d)(1)(ii) requires               however, given the public comments it                 Secretary must determine whether this
                                                 the LEA to identify and address the                     has received in response to its general               regulatory action is ‘‘significant’’ and,
                                                 factors contributing to significant                     solicitation in 2017 on regulatory                    therefore, subject to the requirements of
                                                 disproportionality as part of                           reform, that the Equity in IDEA                       the Executive order and subject to
                                                 implementing comprehensive CEIS.                        regulations may not appropriately                     review by the Office of Management and
                                                 Section 300.646(d)(2) expands the                       address the problem of significant                    Budget (OMB). Section 3(f) of Executive
                                                 populations of children eligible for                    disproportionality. We therefore                      Order 12866 defines a ‘‘significant
                                                 these services to include children, with                propose to postpone by two years the                  regulatory action’’ as an action likely to
                                                 and without disabilities, from age 3                    compliance dates for the regulations so               result in a rule that may—
                                                 through grade 12.                                       that we may review all of the issues                    (1) Have an annual effect on the
                                                    The significant disproportionality                   raised and determine how to better                    economy of $100 million or more, or
                                                 regulations became effective January 18,                serve children with disabilities.                     adversely affect a sector of the economy,
                                                 2017, but the Department delayed the                       A number of commenters suggested,                  productivity, competition, jobs, the
                                                 date for compliance. States are not                     for example, that the Department lacks                environment, public health or safety, or
                                                 required to begin complying until July                  the statutory authority under IDEA to                 State, local or tribal governments or
                                                 1, 2018, and are not required to include                require States to use a standard                      communities in a material way (also
                                                 children ages three through five in their               methodology, pointing out as well that                referred to as an ‘‘economically
                                                 analyses of significant                                 the Department’s previous position,                   significant’’ rule);
                                                 disproportionality with respect to the                  adopted in the 2006 regulations                         (2) Create serious inconsistency or
                                                 identification of children as children                  implementing the 2004 amendments to                   otherwise interfere with an action taken
                                                 with disabilities and as children with a                IDEA, was that States are in the best                 or planned by another agency;
                                                 particular impairment until July 1, 2020.               position to evaluate factors affecting                  (3) Materially alter the budgetary
                                                    Proposed Regulations: The                            determinations of significant                         impacts of entitlement grants, user fees,
                                                 Department proposes to postpone the                     disproportionality.                                   or loan programs or the rights and
                                                 compliance date for implementing the                       Similarly, one detailed comment                    obligations of recipients thereof; or
                                                 regulations to July 1, 2020 from July 1,                expressed concern that the standard                     (4) Raise novel legal or policy issues
                                                 2018. The Department also proposes to                   methodology improperly looks at group                 arising out of legal mandates, the
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                                                 postpone the compliance date for                        outcomes through statistical measures                 President’s priorities, or the principles
                                                 including children ages three through                   rather than focusing on what is at the                stated in the Executive order.
                                                 five in the significant disproportionality              foundation of IDEA, namely the needs                    This proposed regulatory action is a
                                                 analysis to July 1, 2022, from July 1,                  of each individual child and on the                   significant regulatory action subject to
                                                 2020.                                                   appropriateness of individual                         review by OMB under section 3(f) of
                                                    Reasons: As the Department noted in                  identifications, placements, or                       Executive Order 12866.
                                                 the Notice of Proposed Rulemaking                       discipline. Further, a number of                        We have also reviewed these
                                                 (NPRM) proposing the significant                        commenters suggested that the standard                regulations under Executive Order


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                                                 8398                  Federal Register / Vol. 83, No. 39 / Tuesday, February 27, 2018 / Proposed Rules

                                                 13563, which supplements and                            Need for These Regulations                            regulations on July 1, 2018, five States
                                                 explicitly reaffirms the principles,                      As explained in the previous section,               would implement them as of July 1,
                                                 structures, and definitions governing                   we are proposing this regulatory action               2019, and the remaining 40 would wait
                                                 regulatory review established in                        in order to delay implementation of a                 until July 1, 2020.
                                                 Executive Order 12866. To the extent                    regulation that we are concerned may                    Further, the Department estimates
                                                 permitted by law, Executive Order                       not meet its fundamental purpose,                     that the number of LEAs identified with
                                                 13563 requires that an agency—                          namely to properly identify and address               significant disproportionality in each
                                                    (1) Propose or adopt regulations only                significant disproportionality among                  year as a result of the revised
                                                 upon a reasoned determination that                      children with disabilities. We propose                regulations would be reduced due to the
                                                 their benefits justify their costs                      the delay as well to give the                         delay in implementation. Previously,
                                                 (recognizing that some benefits and                     Department, the States, and the public                the Department estimated that 400 new
                                                 costs are difficult to quantify);                       additional time to study the questions                LEAs would be identified each year. We
                                                    (2) Tailor their regulations to impose               involved and determine how to better                  estimate that the delay in compliance
                                                 the least burden on society, consistent                 serve children with disabilities.                     date would result in only 80 additional
                                                 with obtaining regulatory objectives and                                                                      LEAs being identified in the 2018–2019
                                                 taking into account—among other                         Alternatives Considered                               school year (a reduction of 320) and
                                                 things, and to the extent practicable—                    The Department considered proposing                 only 100 additional LEAs identified in
                                                 the costs of cumulative regulations;                    a delay of the compliance dates for                   the 2019–20 school year (a reduction of
                                                    (3) In choosing among alternative                    different lengths of time and decided                 300). These estimates assume that the
                                                 regulatory approaches, select those                     upon two years as an appropriate                      number of additional LEAs identified
                                                 approaches that maximize net benefits                   length, given a realistic measure of how              each year is roughly proportional to the
                                                 (including potential economic,                          long it takes the agency to develop,                  number of States that implement the
                                                 environmental, public health and safety,                propose, and promulgate complex                       revised regulations.1
                                                 and other advantages; distributive                      regulations. In the Department’s
                                                 impacts; and equity);                                                                                         Executive Order 13771
                                                                                                         experience, one year is too little time as
                                                    (4) To the extent feasible, specify                  a general matter and, for these                         Consistent with Executive Order
                                                 performance objectives, rather than                     regulations in particular, given the                  13771 (82 FR 9339, February 3, 2017),
                                                 specifying the behavior or manner of                    amount of work on this issue the                      we have estimated that this proposed
                                                 compliance that regulated entities must                 Department has already done, three                    regulatory action will not impose any
                                                 adopt; and                                              years is too long.                                    additional costs.
                                                    (5) Identify and assess available
                                                 alternatives to direct regulation,                      Analysis of Costs and Benefits                        Regulatory Flexibility Act Certification
                                                 including providing economic                              The Department has analyzed the                       The Secretary certifies that these
                                                 incentives—such as user fees or                         costs of complying with the proposed                  proposed regulations would not have a
                                                 marketable permits—to encourage the                     regulatory action. While postponing the               significant economic impact on a
                                                 desired behavior, or provide                            obligation to comply with the                         substantial number of small entities.
                                                 information that enables the public to                  regulations would not place any new                     The U.S. Small Business
                                                 make choices.                                           requirements on States, the delay in the              Administration (SBA) Size Standards
                                                    Executive Order 13563 also requires                  compliance date would reduce costs                    define ‘‘small entities’’ as for-profit or
                                                 an agency ‘‘to use the best available                   over the 10 years relative to the baseline            nonprofit institutions with total annual
                                                 techniques to quantify anticipated                      set out in the December 2016 final rule.              revenue below $7,000,000 or, if they are
                                                 present and future benefits and costs as                  The Department estimates that this                  institutions controlled by small
                                                 accurately as possible.’’ The Office of                 regulatory action would generate cost                 governmental jurisdictions (that are
                                                 Information and Regulatory Affairs of                   savings between $10.9 and $11.5                       comprised of cities, counties, towns,
                                                 OMB has emphasized that these                           million, with a reduction in transfers of             townships, villages, school districts, or
                                                 techniques may include ‘‘identifying                    between $59.6 and $63.0 million. These                special districts), with a population of
                                                 changing future compliance costs that                   savings are driven by two separate, but               less than 50,000. These proposed
                                                 might result from technological                         related factors: Fewer States                         regulations would affect all LEAs,
                                                 innovation or anticipated behavioral                    implementing the regulations during the               including the estimated 17,371 LEAs
                                                 changes.’’                                              2018–19 and 2019–20 school years and,                 that meet the definition of small
                                                    We are issuing this proposed                         as a result, the lower number of LEAs                 entities. However, we have determined
                                                 regulatory action only upon a reasoned                  identified as having significant                      that the proposed regulations would not
                                                 determination that its benefits justify its             disproportionality in each of those years             have a significant economic impact on
                                                 costs. Based on the analysis that                       under the standard methodology.                       these small entities. As stated earlier,
                                                 follows, the Department believes that                     In developing our estimates, the                    this proposed regulatory action imposes
                                                 these regulations are consistent with the               Department assumed that a small                       no new costs.
                                                 principles in Executive Order 13563.                    number of States, who may already be
                                                    We also have determined that this                    prepared, or nearly prepared, to                         1 This calculation of savings includes a change to
                                                 regulatory action would not unduly                      implement the regulations on July 1,                  the baseline in the December 2016 final rule due to
                                                 interfere with State, local, and Tribal                 2018 will continue to do so, regardless               an incorrect calculation in the 3 percent discount
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                                                 governments in the exercise of their                    of any delay in the compliance date. We               rate, shown in detail in the cost analysis
                                                                                                                                                               spreadsheet posted in the docket with this
                                                 governmental functions.                                 also assume that a subset of States will              document. This calculation of cost savings does not
                                                    In this regulatory impact analysis we                implement the regulations in the                      change any of the assumptions regarding wage
                                                 discuss the need for regulatory action,                 following school year (2019–20), with                 rates, hours of burden, or number of personnel that
                                                 alternatives considered, the potential                  the remainder of States waiting until the             were discussed in the final rule. The assumptions
                                                                                                                                                               upon which the cost-benefit calculations in the
                                                 costs and benefits, net budget impacts,                 2020 compliance date to implement the                 final rule are based are being evaluated by the
                                                 assumptions, limitations, and data                      regulations. We assume that 10 States                 Department as part of the review of the final rule
                                                 sources.                                                would implement the revised                           itself.



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                                                                       Federal Register / Vol. 83, No. 39 / Tuesday, February 27, 2018 / Proposed Rules                                            8399

                                                 Paperwork Reduction Act of 1995                         POSTAL SERVICE                                        Background
                                                   This regulatory action does not                                                                                On December 18, 2013, in a notice of
                                                                                                         39 CFR Part 111                                       final rulemaking (78 FR 76548–76560),
                                                 contain any information collection
                                                 requirements.                                           Proposed Changes to Validations for                   the Postal Service announced that
                                                                                                         Intelligent Mail Package Barcode                      mailers who enter commercial parcels
                                                 Intergovernmental Review                                                                                      must adhere to the following: IMpb
                                                                                                         AGENCY:    Postal ServiceTM.                          must be used on all commercial parcels;
                                                    This program is subject to Executive                                                                       piece-level information must be
                                                 Order 12372 and the regulations in 34                   ACTION:   Proposed rule.                              submitted to the Postal Service via an
                                                 CFR part 79. One of the objectives of the                                                                     approved electronic file format (except
                                                 Executive order is to foster an                         SUMMARY:  The Postal Service is                       for mailers generating barcodes for use
                                                 intergovernmental partnership and a                     proposing to revise the Mailing                       on return services products, such as
                                                 strengthened federalism. The Executive                  Standards of the United States Postal                 MRS); and electronic files must include
                                                 order relies on processes developed by                  Service, Domestic Mail Manual                         the complete destination delivery
                                                 State and local governments for                         (DMM®), to add new Intelligent Mail®                  address and/or an 11-digit Delivery
                                                 coordination and review of proposed                     package barcode (IMpb) validations for                Point Validation (DPV®) ZIP Code® for
                                                 Federal financial assistance.                           evaluating compliance with IMpb                       all records, except for Parcel Return
                                                    This document provides early                         requirements for all mailers who enter                Service, a ZIP+4® Code is required to be
                                                 notification of the Department’s specific               commercial parcels.                                   encoded into the barcode for all returns
                                                 plans and actions for this program.                     DATES:Submit comments on or before                    products.
                                                    Accessible Format: Individuals with                  March 29, 2018.                                          Since IMpb requirements were
                                                 disabilities can obtain this document in                                                                      implemented, the Postal Service has
                                                                                                         ADDRESSES:   Mail or deliver written                  made significant advances with its
                                                 an accessible format (e.g., braille, large              comments to the manager, Product
                                                 print, audiotape, or compact disc) on                                                                         package strategy. Use of IMpbs
                                                                                                         Classification, U.S. Postal Service, 475              continues to be the critical bridge
                                                 request to the contact person listed                    L’Enfant Plaza SW, Room 4446,
                                                 under FOR FURTHER INFORMATION                                                                                 between physical packages and the
                                                                                                         Washington, DC 20260–5015. If sending                 digital information required to enable
                                                 CONTACT.
                                                                                                         comments by email, include the name                   world class service, tracking, visibility,
                                                    Electronic Access to This Document:                  and address of the commenter and send                 and positive customer experiences.
                                                 The official version of this document is                to ProductClassification@usps.gov, with               Barcode intelligence along with the
                                                 the document published in the Federal                   a subject line of ‘‘Intelligent Mail                  corresponding digital data captured
                                                 Register. Free internet access to the                   Package Barcode Validations.’’ Faxed                  through in-transit processing and
                                                 official edition of the Federal Register                comments are not accepted. You may                    delivery scans are fundamental
                                                 and the Code of Federal Regulations is                  inspect and photocopy all written                     requirements in the shipping market.
                                                 available via the Federal Digital System                comments, by appointment only, at                     The data have enabled the Postal
                                                 at: www.gpo.gov/fdsys. At this site you                 USPS® Headquarters Library, 475                       Service and its customers to enhance
                                                 can view this document, as well as all                  L’Enfant Plaza SW, 11th Floor North,                  products, improve customer
                                                 other documents of this Department                      Washington, DC 20260. These records                   satisfaction, increase efficiencies,
                                                 published in the Federal Register, in                   are available for review on Monday                    provide greater visibility, integrate with
                                                 text or Portable Document Format                        through Friday, 9 a.m.–4 p.m., by                     eCommerce and supply chain systems,
                                                 (PDF). To use PDF you must have                         calling 202–268–2906.                                 enhance performance and analytics
                                                 Adobe Acrobat Reader, which is                                                                                tools, and generate actionable business
                                                                                                         FOR FURTHER INFORMATION CONTACT:
                                                 available free at the site.                                                                                   insights for better decisions.
                                                                                                         Direct questions or comments to
                                                    You may also access documents of the                 Juliaann Hess at jsanders.hess@usps.gov                  In January 2015, the Postal Service
                                                 Department published in the Federal                     or (202) 268–7663.                                    required that all parcels with an IMpb
                                                 Register by using the article search                                                                          be accompanied by the complete
                                                 feature at: www.federalregister.gov.                    SUPPLEMENTARY INFORMATION:     The Postal             destination delivery address or an 11-
                                                 Specifically, through the advanced                      Service is proposing to update IMpb                   digit ZIP Code (validated by the DPV
                                                 search feature at this site, you can limit              requirements relative to Compliance                   System, or an approved equivalent) in
                                                 your search to documents published by                   Quality Validations for Thresholds,                   the Shipping Services File or other
                                                 the Department.                                         Address Quality, Shipping Services File               approved electronic documentation.
                                                                                                         Manifest Quality, and Barcode Quality.                This information is critical to the Postal
                                                 List of Subjects in 34 CFR Part 300                     These proposed validations would                      Service package strategy, the dynamic
                                                                                                         allow the Postal Service to further                   routing process that enable package
                                                   Administrative practice and                           improve service, tracking, visibility, and
                                                 procedure, Education of individuals                                                                           distribution without scheme-trained
                                                                                                         positive customer experiences along                   employees, improving the customer’s
                                                 with disabilities, Elementary and                       with better identifying noncompliant
                                                 secondary education, Equal educational                                                                        experience, and enhancing business
                                                                                                         mailpieces.                                           insights and analytics.
                                                 opportunity, Grant programs—
                                                 education, Privacy, Private schools,                       Technical and in-depth IMpb                           In January 2016, the Postal Service
                                                 Reporting and recordkeeping                             guidance is available in Publication 199,             began measuring the quality of mailer
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                                                 requirements.                                           Intelligent Mail Package Barcode                      compliance for the newly introduced
                                                                                                         Implementation Guide for: Confirmation                IMpb Compliance Quality Category with
                                                   Dated: February 23, 2018.                             Services and Electronic Verification                  data validations to determine the IMpb
                                                 Johnny W. Collett,                                      System Mailers, which is conveniently                 Compliance Assessment criteria as
                                                 Assistant Secretary for Special Education and           located on the PostalPro website at                   follows: Address Quality, Manifest
                                                 Rehabilitative Services.                                https://postalpro.usps.com. This                      Quality, and Barcode Quality. Then, in
                                                 [FR Doc. 2018–04102 Filed 2–23–18; 4:15 pm]             publication would be updated to reflect               July 2017, the Postal Service began
                                                 BILLING CODE 4000–01–P                                  all adopted changes.                                  assessing mailers with a $0.20 IMpb


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Document Created: 2018-02-27 01:14:52
Document Modified: 2018-02-27 01:14:52
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
ActionNotice of proposed rulemaking.
DatesWe must receive your comments on or before May 14, 2018.
ContactKate Friday, U.S. Department of Education, 400 Maryland Avenue SW, Room 5104, Potomac Center Plaza, Washington, DC 20202-2500. Telephone: (202) 245-7605, or by email at: [email protected]
FR Citation83 FR 8396 
RIN Number1820-AB77
CFR AssociatedAdministrative Practice and Procedure; Education of Individuals with Disabilities; Elementary and Secondary Education; Equal Educational Opportunity; Grant Programs-Education; Privacy; Private Schools and Reporting and Recordkeeping Requirements

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