FR Doc 03-18873
[Federal Register: July 24, 2003 (Volume 68, Number 142)]
[Rules and Regulations]               
[Page 43639-43645]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr24jy03-10]                         

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DEPARTMENT OF EDUCATION

34 CFR Part 263

RIN 1810-AA93

 
Indian Education Discretionary Grant Programs

AGENCY: Office of Elementary and Secondary Education, Department of 
Education.

ACTION: Final regulations.

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SUMMARY: The Secretary amends the regulations governing the 
discretionary grant programs administered under Title VII of the 
Elementary and Secondary Education Act (ESEA) of 1965, as amended by 
the No Child Left Behind Act of 2001, Public Law No. 107-110. The 
programs governed by this title include grants for the Professional 
Development program and the Demonstration Grants for Indian Children 
program. These regulations identify specific application and program 
requirements that must be set forth in order for applications to be 
considered for funding, and the requirements for the payback provisions 
that apply to the Professional Development program. These regulations 
will govern the grant application process for new awards under both 
programs for fiscal year 2003 and thereafter, including the payback 
provisions for the Professional Development program.

EFFECTIVE DATE: These regulations are effective July 24, 2003.

FOR FURTHER INFORMATION CONTACT: Cathie Martin. Telephone: (202) 260-
1683 or via Internet: cathie.martin@ed.gov.
[[Page 43640]]

    If you use a telecommunications device for the deaf (TDD), you may 
call the Federal Information Relay Service (FIRS) at 1-800-877-8339.
    Individuals with disabilities may obtain this document in an 
alternative format (e.g., Braille, large print, audiotape, or computer 
diskette) on request to the contact person listed under FOR FURTHER 
INFORMATION CONTACT.

SUPPLEMENTARY INFORMATION:

Background

    On January 8, 2002, the Demonstration Grants for Indian Children 
program and Professional Development program were revised and 
recodified as sections 7121 and 7122 of subpart 2 of part A of title 
VII of the Elementary and Secondary Education Act of 1965 (ESEA), as 
amended by Public Law 107-110, the No Child Left Behind Act of 2001. On 
July 22, 2002, the Secretary published in the Federal Register (67 FR 
47695) a final rule with request for comment on these programs. No 
comments were received, and no substantive changes are made to these 
regulations.
    These regulations incorporate the specific program requirements for 
both programs. They also include the Secretary's application 
requirements for the Professional Development program that must be met 
in order for applications to be considered for funding, and the 
requirements concerning the payback provisions applicable to that 
program. The Secretary is required, under Section 7122(h) of the ESEA, 
to establish regulations governing payback and reporting provisions for 
the Professional Development program.

Analysis of Comments and Changes

    No comments were received in response to the Secretary's invitation 
to comment on the final rule that suggested changes or clarification of 
the content of these regulations. Consequently, the Secretary has 
determined that no substantive changes are necessary.

Executive Order 12866

    Under Executive Order 12866, we have assessed the potential costs 
and benefits of this regulatory action.
    The potential costs associated with the regulations are those 
resulting from statutory requirements and those we have determined to 
be necessary for administering these programs effectively and 
efficiently.
    In assessing the potential costs and benefits--both quantitative 
and qualitative--of this regulatory action, we have determined that the 
benefits justify the costs.
    We have also determined that this regulatory action does not unduly 
interfere with State, local, and tribal governments in the exercise of 
their governmental functions.

Waiver of Proposed Rulemaking

    Under the Administrative Procedure Act (5 U.S.C. 553) the 
Department generally offers interested parties the opportunity to 
comment on proposed regulations. Section 437(d)(2) of the General 
Education Provisions Act (GEPA), however, exempts from this rulemaking 
requirement those rules where the Secretary determines it would cause 
extreme hardship to the beneficiaries of the program that would be 
affected by those rules. The Secretary, in accordance with section 
437(d)(2) of GEPA, has decided to issue these rules without first 
publishing them for public comment in order to ensure timely and high 
quality grant awards.

Regulatory Flexibility Act Certification

    The Secretary certifies that these regulations will not have a 
significant economic impact on a substantial number of small entities.
    The small entities that are affected by these regulations are small 
local educational agencies (LEAs) receiving Federal funds under this 
program. However, the regulations will not have a significant economic 
impact on the small LEAs affected because the regulations do not impose 
excessive regulatory burdens or require unnecessary Federal 
supervision. The regulations impose minimal requirements to ensure the 
proper expenditure of program funds.

Paperwork Reduction Act of 1995

    The Paperwork Reduction Act of 1995 does not require you to respond 
to a collection of information unless it displays a valid OMB control 
number. We display the valid OMB control number assigned to the 
collection of information in these final regulations at the end of the 
affected sections of the regulations.

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 our specific plans and 
actions for this program.

Assessment of Educational Impact

    Based on the response to the final regulations with invitation to 
comment and our own review, we have determined that these final 
regulations do not require transmission of information that any other 
agency or authority of the United States gathers or makes available.

Electronic Access to This Document

    You may view this document, as well as all other Department of 
Education documents published in the Federal Register, in text or Adobe 
Portable Document Format (PDF) on the Internet at the following site: 
http://www.ed.gov/legislation/FedRegister.
    To use PDF you must have Adobe Acrobat Reader, which is available 
free at this site. If you have questions about using PDF, call the U.S. 
Government Printing Office (GPO), toll free, at 1-888-293-6498; or in 
the Washington, DC, area at (202) 512-1530.

    Note: 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 on GPO Access at: http://www.access.gpo.gov/nara/index.html
.

(Catalog of Federal Domestic Assistance Number 84.299 Indian 
Education--Special Programs.)

List of Subjects in 34 CFR Part 263

    Elementary and secondary education, Grant programs-education, 
Indians-education, Reporting and recordkeeping requirements, 
Scholarships and fellowships.

    Dated: July 21, 2003.
Eugene W. Hickok,
Under Secretary of Education.

0
For the reasons discussed in the preamble, the Secretary revises part 
263 of title 34 of the Code of Federal Regulations to read as follows:

PART 263--INDIAN EDUCATION DISCRETIONARY GRANT PROGRAMS

Subpart A--Professional Development Program
Sec.
263.1 What is the Professional Development program?
263.2 Who is eligible to apply under the Professional Development 
program?
263.3 What definitions apply to the Professional Development 
program?
263.4 What training costs may a Professional Development program 
include?

[[Page 43641]]

263.5 What priority is given to certain projects and applicants?
263.6 How does the Secretary evaluate applications for the 
Professional Development program?
263.7 What are the requirements for a leave of absence?
263.8 What are the payback requirements?
263.9 When does payback begin?
263.10 What are the payback reporting requirements?
Subpart B--Demonstration Grants for Indian Children Program
263.20 What definitions apply to the Demonstration Grants for Indian 
Children program?
263.21 What priority is given to certain projects and applicants?

    Authority: 20 U.S.C. 7441 and 7442, unless otherwise noted.

Subpart A--Professional Development Program


Sec.  263.1  What is the Professional Development program?

    (a) The Professional Development program provides grants to 
eligible entities to--
    (1) Increase the number of qualified Indian individuals in 
professions that serve Indian people;
    (2) Provide training to qualified Indian individuals to become 
teachers, administrators, teacher aides, social workers, and ancillary 
educational personnel; and
    (3) Improve the skills of qualified Indian individuals who serve in 
the education field.
    (b) The Professional Development program requires individuals who 
receive training to--
    (1) Perform work related to the training received under the program 
and that benefits Indian people, or to repay all or a prorated part of 
the assistance received under the program; and
    (2) Report to the Secretary on the individual's compliance with the 
work requirement.

(Authority: 20 U.S.C. 7442)

Sec.  263.2  Who is eligible to apply under the Professional 
Development program?

    (a) In order to be eligible for either pre-service or in-service 
training programs, an applicant must be an eligible entity which 
means--
    (1) An institution of higher education, including an Indian 
institution of higher education;
    (2) A State educational agency in consortium with an institution of 
higher education;
    (3) A local educational agency in consortium with an institution of 
higher education;
    (4) An Indian tribe or Indian organization in consortium with an 
institution of higher education; or
    (5) A Bureau of Indian Affairs (Bureau)-funded school.
    (b) Bureau-funded schools are eligible applicants for--
    (1) An in-service training program; and
    (2) A pre-service training program when the Bureau-funded school 
applies in consortium with an institution of higher education that is 
accredited to provide the coursework and level of degree required by 
the project.
    (c) Eligibility of an applicant requiring a consortium with any 
institution of higher education, including Indian institutions of 
higher education, requires that the institution of higher education be 
accredited to provide the coursework and level of degree required by 
the project.

(Authority: 20 U.S.C. 7442)

Sec.  263.3  What definitions apply to the Professional Development 
program?

    The following definitions apply to the Professional Development 
program:
    Bureau-funded school means a Bureau school, a contract or grant 
school, or a school for which assistance is provided under the Tribally 
Controlled Schools Act of 1988.
    Department means the U.S. Department of Education.
    Dependent allowance means costs for the care of minor children 
under the age of 18 who reside with the training participant and for 
whom the participant has responsibility. The term does not include 
financial obligations for payment of child support required of the 
participant.
    Expenses means tuition and required fees; health insurance required 
by the institution of higher education; room, personal living expenses, 
and board at or near the institution; dependent allowance; and 
instructional supplies.
    Full course load means the number of credit hours that the 
institution requires of a full-time student.
    Full-time student means a student who--
    (1) Is a degree candidate for a baccalaureate or graduate degree;
    (2) Carries a full course load; and
    (3) Is not employed for more than 20 hours a week.
    Good standing means a cumulative grade point average of at least 
2.0 on a 4.0 grade point scale in which failing grades are computed as 
part of the average, or another appropriate standard established by the 
institution.
    Graduate degree means a post-baccalaureate degree awarded by an 
institution of higher education beyond the undergraduate level.
    Indian means an individual who is--
    (1) A member of an Indian tribe or band, as membership is defined 
by the Indian tribe or band, including any tribe or band terminated 
since 1940, and any tribe or band recognized by the State in which the 
tribe or band resides;
    (2) A descendant of a parent or grandparent who meets the 
requirements of paragraph (1) of this definition;
    (3) Considered by the Secretary of the Interior to be an Indian for 
any purpose;
    (4) An Eskimo, Aleut, or other Alaska Native; or
    (5) A member of an organized Indian group that received a grant 
under the Indian Education Act of 1988 as it was in effect October 19, 
1994.
    Indian institution of higher education means an accredited college 
or university within the United States cited in section 532 of the 
Equity in Educational Land-Grant Status Act of 1994, any other 
institution that qualifies for funding under the Tribally Controlled 
College or University Assistance Act of 1978, and the Navajo Community 
College, authorized in the Navajo Community College Assistance Act of 
1978.
    Indian organization means an organization that--
    (1) Is legally established--
    (i) By tribal or inter-tribal charter or in accordance with State 
or tribal law; and
    (ii) With appropriate constitution, by-laws, or articles of 
incorporation;
    (2) Has as its primary purpose the promotion of the education of 
Indians;
    (3) Is controlled by a governing board, the majority of which is 
Indian;
    (4) If located on an Indian reservation, operates with the sanction 
or by charter of the governing body of that reservation;
    (5) Is neither an organization or subdivision of, nor under the 
direct control of, any institution of higher education; and
    (6) Is not an agency of State or local government.
    Induction services means services provided after the participant 
completes his or her training program and includes, at a minimum, these 
activities:
    (1) Mentoring, coaching, and consultation services for the 
participant to improve performance,
    (2) Access to research materials and information on teaching and 
learning,
    (3) Periodic assessment of, and feedback sessions on, the 
participant's performance, provided in coordination with the 
participant's supervisor,
    (4) Periodic meetings or seminars for participants to enhance 
collaboration, feedback, and peer networking and support.
    In-service training means professional activities and opportunities 
designed to

[[Page 43642]]

enhance the skills and abilities of individuals in their current areas 
of employment.
    Institution of higher education means an accredited college or 
university within the United States that awards a baccalaureate or 
post-baccalaureate degree.
    Participant means an Indian individual who is being trained under 
the Professional Development program.
    Payback means work-related service or cash reimbursement to the 
Department of Education for the training received under the 
Professional Development program.
    Pre-service training means training to Indian individuals to 
prepare them to meet the requirements for licensing or certification in 
a professional field requiring at least a baccalaureate degree.
    Professional development activities means in-service training 
offered to enhance the skills and abilities of individual participants.
    Secretary means the Secretary of the Department of Education or an 
official or employee of the Department acting for the Secretary under a 
delegation of authority.
    Stipend means that portion of an award that is used for room and 
board and personal living expenses.

    Note: Only full-time students are eligible for stipends.

    Undergraduate degree means a baccalaureate (bachelor's) degree 
awarded by an institution of higher education.

(Authority: 20 U.S.C. 7442 and 7491)

Sec.  263.4  What training costs may a Professional Development program 
include?

    (a) A Professional Development program may include, as training 
costs, assistance to either--
    (1) Fully finance a student's educational expenses; or
    (2) Supplement other financial aid--including Federal funding other 
than loans--for meeting a student's educational expenses.
    (b) The Secretary announces the expected maximum amounts for 
stipends and other costs--including training costs--in the annual 
application notice published in the Federal Register.

(Authority: 20 U.S.C. 7442)

Sec.  263.5  What priority is given to certain projects and applicants?

    (a) The Secretary awards a total of 5 points to an application 
submitted by an Indian tribe, Indian organization, or an Indian 
institution of higher education that is eligible to participate in the 
Professional Development program. A consortium application of eligible 
entities that meets the requirements of 34 CFR 75.127 through 75.129 of 
EDGAR and includes an Indian tribe, Indian organization or Indian 
institution of higher education will be considered eligible to receive 
the 5 priority points. The consortium agreement, signed by all parties, 
must be submitted with the application in order to be considered as a 
consortium application.
    (b) The Secretary awards a total of 5 points to an application 
submitted by a consortium of eligible applicants that includes a tribal 
college or university and that designates that tribal college or 
university as the fiscal agent for the application. The consortium 
application of eligible entities must meet the requirements of 34 CFR 
75.127 through 75.129 of EDGAR to be considered eligible to receive the 
5 priority points. These competitive preference points are in addition 
to the 5 competitive preference points that may be given under 
paragraph (a) of this section. The consortium agreement, signed by all 
parties, must be submitted with the application in order to be 
considered as a consortium application.
    (c) The Secretary may give absolute preference reserving all or a 
portion of the funds available for new awards under the Professional 
Development program, to only those applications that meet one of the 
following priorities selected for a fiscal year. The Secretary 
announces the absolute priority selected in the annual application 
notice published in the Federal Register.
    (1) Pre-Service training for teachers. This priority provides 
support and training to Indian individuals to complete a pre-service 
education program that enables these individuals to meet the 
requirements for full State certification or licensure as a teacher 
through--
    (i) Training that leads to a bachelor's degree in education before 
the end of the award period; or
    (ii) For States allowing a degree in a specific subject area, 
training that leads to a bachelor's degree in the subject area as long 
as the training meets the requirements for full State teacher 
certification or licensure; or
    (iii) Training in a current or new specialized teaching assignment 
that requires at least a bachelor's degree and in which a documented 
teacher shortage exists; and
    (iv) One-year induction services after graduation, certification, 
or licensure, provided during the award period to graduates of the pre-
service program while they are completing their first year of work in 
schools with significant Indian student populations.

    Note to paragraph (c)(1): In working with various institutions 
of higher education and State certification/licensure requirements, 
we found that States requiring a degree in a specific subject area 
(e.g., specialty areas or teaching at the secondary level) generally 
require a Master's degree or fifth-year requirement before an 
individual can be certified or licensed as a teacher. These students 
would be eligible to participate as long as their training meets the 
requirements for full State certification or licensure as a teacher.

    (2) Pre-service administrator training. This priority provides--
    (i) Support and training to Indian individuals to complete a 
master's degree in education administration that is provided before the 
end of the award period and that allows participants to meet the 
requirements for State certification or licensure as an education 
administrator; and
    (ii) One year of induction services, during the award period, to 
participants after graduation, certification, or licensure, while they 
are completing their first year of work as administrators in schools 
with significant Indian student populations.

(Authority: 20 U.S.C. 7442 and 7473)

Sec.  263.6  How does the Secretary evaluate applications for the 
Professional Development program?

    The following criteria, with the total number of points available 
in parenthesis, are used to evaluate an application for a new award:
    (a) Need for project (5) points. In determining the need for the 
proposed project, the Secretary considers the following:
    (1) The extent to which the proposed project will prepare personnel 
in specific fields in which shortages have been demonstrated; and
    (2) The extent to which specific gaps or weaknesses in local 
capacity to provide, improve, or expand services that address the needs 
of the community or region have been identified and will be addressed 
by the proposed project, including the nature and magnitude of those 
gaps or weaknesses.
    (b) Significance (10) points. In determining the significance of 
the proposed project, the Secretary considers the following:
    (1) The potential contribution of the proposed project to increase 
effective strategies for teaching and student achievement;
    (2) The likelihood that the proposed project will build local 
capacity to provide, improve, or expand services that address the needs 
of the target population; and

[[Page 43643]]

    (3) The likelihood that the proposed project will result in system 
change or improvement.
    (c) Quality of the project design (15) points. The Secretary 
considers the following factors in determining the quality of the 
design of the proposed project:
    (1) The extent to which the goals, objectives, and outcomes to be 
achieved by the proposed project are clearly specified and measurable;
    (2) The extent to which the design of the proposed project reflects 
up-to-date knowledge from scientifically-based research and effective 
practices on how to improve teaching and learning to support student 
proficiency in meeting rigorous academic standards;
    (3) The extent to which performance feedback and continuous 
improvement of participant performance are integral to the design of 
the proposed project; and
    (4) The extent to which the proposed project will establish 
linkages with other appropriate agencies and organizations providing 
educational services to the population of students to be served by the 
participants.
    (d) Quality of project services (15) points. The Secretary 
considers the following factors:
    (1) The extent to which the services to be provided by the proposed 
project reflect up-to-date knowledge of scientifically-based research 
and effective practice;
    (2) The extent to which the training or professional development 
services to be provided by the proposed project are of sufficient 
quality, intensity, and duration to lead to improvements in the 
achievement of students as measured against rigorous academic 
standards; and
    (3) The extent to which the services to be provided by the proposed 
project involve the collaboration of appropriate partners for 
maximizing the effectiveness of the training and project services 
provided.
    (e) Quality of project personnel (15) points. The Secretary 
considers the following factors when determining the quality of the 
personnel who will carry out the proposed project:
    (1) The qualifications, including relevant training and experience, 
of the project director;
    (2) The qualifications, including relevant training and experience, 
of key project personnel; and
    (3) The qualifications, including relevant training and experience, 
of project consultants or subcontractors.
    (f) Adequacy of resources (10) points. In determining the adequacy 
of support for the proposed project, the Secretary considers the 
following factors:
    (1) The relevance and demonstrated commitment of each partner in 
the proposed project to the implementation and success of the project;
    (2) The extent to which the costs are reasonable in relation to the 
design of the program, program objectives, number of persons to be 
served, and the anticipated results and benefits; and
    (3) The potential for the incorporation of project purposes, 
activities, or benefits into the ongoing program of the agency or 
organization at the end of Federal funding.
    (g) Quality of the management plan (15) points. In determining the 
quality of the management plan for the proposed project, the Secretary 
considers the following factors:
    (1) The adequacy of procedures for ensuring feedback and continuous 
improvement in the performance of program participants in meeting the 
needs of the population they are to serve;
    (2) The adequacy of the management plan to achieve the objectives 
of the proposed project during the award period, including clearly 
defined responsibilities, timelines, and milestones for accomplishing 
project tasks; and
    (3) The extent to which the time commitments of the project 
director and other key personnel are appropriate and adequate to meet 
the objectives of the proposed project.
    (h) Quality of the project evaluation (15) points. In determining 
the quality of the evaluation, the Secretary considers the following 
factors:
    (1) The extent to which the methods of evaluation are thorough, 
feasible, and appropriate to the context within which the project 
operates and the effectiveness of project implementation strategies;
    (2) The extent to which the methods of evaluation will provide 
performance feedback on participants and permit periodic assessment of 
progress toward achieving the intended outcomes; and
    (3) The extent to which the methods of evaluation include the use 
of objective output measures that are directly related to the intended 
outcomes of the project and will produce both quantitative and 
qualitative data to the extent possible.

(Approved by the Office of Management and Budget under control 
number 1810-0580)

(Authority: 20 U.S.C. 7442)

Sec.  263.7  What are the requirements for a leave of absence?

    (a) A participant shall submit a written request for a leave of 
absence to the project director not less than 30 days prior to 
withdrawal or completion of a grading period, unless an emergency 
situation has occurred and the project director chooses to waive the 
prior notification requirement.
    (b) The project director may approve a leave of absence, for a 
period not longer than one academic year, provided a training 
participant has successfully completed at least one academic year.
    (c) The project director permits a leave of absence only if the 
institution of higher education certifies that the training participant 
is eligible to resume his or her course of study at the end of the 
leave of absence.

(Approved by the Office of Management and Budget under control 
number 1810-0580)

(Authority: 20 U.S.C. 7442)

Sec.  263.8  What are the payback requirements?

    (a) Individuals receiving assistance under the Professional 
Development program are required to--
    (1) Sign an agreement, at the time of selection for training, to 
meet the provisions of the payback requirement; and
    (2) Perform work related to the training received and that benefits 
Indian people; or
    (3) Repay all or a prorated part of the assistance received.
    (b) The period of time required for a work-related payback is 
equivalent to the total period of time for which training was actually 
received under the Professional Development program.
    (c) The cash payback required shall be equivalent to the total 
amount of funds received and expended for training received under these 
programs and may be prorated based on any approved work-related service 
the participant performs.

(Approved by the Office of Management and Budget under control 
number 1810-0580)

(Authority: 20 U.S.C. 7442)

Sec.  263.9  When does payback begin?

    (a) For all participants who complete their training under the 
Professional Development program, payback shall begin within six months 
from the date of completion of the training.
    (b) For participants who do not complete their training under the 
Professional Development program, payback shall begin within six months 
from the date the fellow leaves the Professional Development program, 
unless he or she continues as a full-time student without interruption, 
in a program leading to a degree in an accredited institution of higher 
education.

[[Page 43644]]

    (1) If the participant leaves the Professional Development program, 
but plans to continue his or her education as a full-time student, the 
Secretary may defer the payback requirement until the participant has 
completed his or her educational program. Written requests for 
deferment shall be submitted to the Secretary within 30 days of leaving 
the Professional Development program and shall provide the following 
information--
    (i) The name of the accredited institution the student will be 
attending;
    (ii) A copy of the letter of admission from the institution;
    (iii) The degree being sought; and
    (iv) The projected date of completion.
    (2) After approval by the Secretary for deferment of the payback 
provision on the basis of continuing as a full-time student, former 
participants are required to submit to the Secretary a status report 
from an academic advisor or other authorized representative of the 
institution of higher education, showing verification of enrollment and 
status, after every grading period.

(Approved by the Office of Management and Budget under control 
number 1810-0580)

(Authority: 20 U.S.C. 7442)

Sec.  263.10  What are the payback reporting requirements?

    (a) Notice of intent. Participants shall submit to the Secretary, 
within 30 days of completion of their training program, a written 
notice of intent to complete a work-related or cash payback, or to 
continue in a degree program as a full-time student.
    (b) Work-related payback. If the participant proposes a work-
related payback, the written notice of intent shall include information 
explaining how the work-related service is related to the training 
received and how it benefits Indian people.
    (1) For work-related service, the Secretary shall review each 
participant's payback plan to determine if the work-related service is 
related to the training received and that it benefits Indian people. 
The Secretary approves the payback plan if a determination is made that 
the work-related service to be performed is related to the training 
received and benefits Indian people, meets all applicable statutory and 
regulatory requirements, and is otherwise appropriate.
    (2) The payback plan for work-related service shall identify where, 
when, the type of service, and for whom the work will be performed.
    (3) A participant shall notify the Secretary in writing of any 
change in the work-related service being performed within 30 days of 
such change.
    (4) For work-related payback, individuals shall submit a status 
report every six months beginning from the date the work-related 
service is to begin. The reports shall include a certification from the 
participant's employer that the service(s) have been performed without 
interruption.
    (5) For participants that initiate, but cannot complete, a work-
related payback, the payback reverts to a cash payback that is prorated 
based upon the amount of time the work-related payback has been 
completed.
    (c) Cash payback. If a cash payback is to be made, the Department 
will contact the participant to establish an appropriate schedule for 
payments.

(Approved by the Office of Management and Budget under control 
number 1810-0580)

(Authority: 20 U.S.C. 7442)

Subpart B--Demonstration Grants for Indian Children Program


Sec.  263.20  What definitions apply to the Demonstration Grants for 
Indian Children program?

    The following definitions apply to the Demonstration Grants for 
Indian Children program:
    Federally supported elementary or secondary school for Indian 
students means an elementary or secondary school that is operated or 
funded, through a contract or grant, by the Bureau of Indian Affairs.
    Indian means an individual who is--
    (1) A member of an Indian tribe or band, as membership is defined 
by the Indian tribe or band, including any tribe or band terminated 
since 1940, and any tribe or band recognized by the State in which the 
tribe or band resides;
    (2) A descendant of a parent or grandparent who meets the 
requirements described in paragraph (1) of this definition;
    (3) Considered by the Secretary of the Interior to be an Indian for 
any purpose;
    (4) An Eskimo, Aleut, or other Alaska Native; or
    (5) A member of an organized Indian group that received a grant 
under the Indian Education Act of 1988 as it was in effect October 19, 
1994.
    Indian institution of higher education means an accredited college 
or university within the United States cited in section 532 of the 
Equity in Educational Land-Grant Status Act of 1994, any other 
institution that qualifies for funding under the Tribally Controlled 
College or University Assistance Act of 1978, and the Navajo Community 
College, authorized in the Navajo Community College Assistance Act of 
1978.
    Indian organization means an organization that:
    (1) Is legally established:
    (i) By tribal or inter-tribal charter or in accordance with State 
or tribal law; and
    (ii) With appropriate constitution, by-laws, or articles of 
incorporation;
    (2) Has as its primary purpose the promotion of the education of 
Indians;
    (3) Is controlled by a governing board, the majority of which is 
Indian;
    (4) If located on an Indian reservation, operates with the sanction 
or by charter of the governing body of that reservation;
    (5) Is neither an organization or subdivision of, nor under the 
direct control of, any institution of higher education; and
    (6) Is not an agency of State or local government.
    Professional development activities means in-service training 
offered to enhance the skills and abilities of individuals that may be 
part of, but not exclusively, the activities provided in a 
Demonstration Grants for Indian Children program.

(Authority: 20 U.S.C. 7441)

Sec.  263.21  What priority is given to certain projects and 
applicants?

    (a) The Secretary awards a total of 5 competitive preference 
priority points to an application that presents a plan for combining 
two or more of the activities described in section 7121(c) of the Act 
over a period of more than one year.
    (b) The Secretary awards a total of 5 competitive preference 
priority points to an application submitted by an Indian tribe, Indian 
organization, or Indian institution of higher education that is 
eligible to participate in the Demonstration Grants for Indian Children 
program. A consortium of eligible entities that meets the requirements 
of 34 CFR 75.127 through 75.129 of EDGAR and includes an Indian tribe, 
Indian organization, or Indian institution of higher education will be 
considered eligible to receive the five (5) priority points. The 
consortium agreement, signed by all parties, must be submitted with the 
application in order to be considered as a consortium application. 
These competitive preference points are in addition to the 5 
competitive preference points that may be given under paragraph (a) of 
this section.
    (c) The Secretary may give absolute preference reserving all or a 
portion of the funds available for new awards under the Demonstration 
Grants for Indian Children program, to only those applications that 
meet one or more of the following priorities selected for a

[[Page 43645]]

fiscal year. The Secretary announces the absolute priority selected in 
the annual application notice published in the Federal Register.
    (1) School readiness projects that provide age appropriate 
educational programs and language skills to three- and four-year-old 
Indian students to prepare them for successful entry into school at the 
kindergarten school level.
    (2) Early childhood and kindergarten programs, including family-
based preschool programs, emphasizing school readiness and parental 
skills.
    (3) College preparatory programs for secondary school students 
designed to increase competency and skills in challenging subject 
matters, including math and science, to enable Indian students to 
successfully transition to postsecondary education.

(Authority: 20 U.S.C. 7441 and 7473)


[FR Doc. 03-18873 Filed 7-23-03; 8:45 am]

BILLING CODE 4000-01-P