Tap any paragraph to write a margin note. Your notes collect in the Desk below the text and file under cases with @. The side-by-side margin rail opens on a larger screen.

§
Marginalia
Code · REGISTER · 2007-11-13 · PROPOSED RULES · Agriculture Agriculture Department See Animal and Plant Health Inspection Service See Food and Nutrition Service Animal Animal and Plant Health Inspection Service RULES Exportation and importation of · Unknown

Unknown. Interim final guidance

21,909 words·~100 min read·/register/2007/11/13/07-5635

A research copy — for the controlling text, always check the official state or federal source. Not legal advice.

--- schema: federal-register doc_type: fedreg source_file: FR-2007-11-13.xml --- 72 218 Tuesday, November 13, 2007 Contents Agriculture Agriculture Department See Animal and Plant Health Inspection Service See Food and Nutrition Service Animal Animal and Plant Health Inspection Service RULES Exportation and importation of animals and animal products: Rinderpest and foot-and-mouth disease; disease status change— Uruguay, 63796-63797 E7-22091 NOTICES Agency information collection activities; proposals, submissions, and approvals, 63873-63874 E7-22094 Environmental statements; availability, etc.:
Imported fire ant; importation, 63874 E7-22092 Centers Centers for Disease Control and Prevention NOTICES Meetings: Injury Prevention and Control Advisory Committee, 63901-63902 E7-22149 National Institute for Occupational Safety and Health— Scientific Counselors Board, 63902 E7-22155 Centers Centers for Medicare & Medicaid Services NOTICES Privacy Act; systems of records, 63902-63911 E7-22079 E7-22083 Children Children and Families Administration NOTICES Agency information collection activities; proposals, submissions, and approvals, 07-5609 63911-63915 07-5610 07-5611 07-5612 07-5626 Grant and cooperative agreement awards:
Public Strategies, Inc., 63915 E7-22101 Coast Guard Coast Guard PROPOSED RULES Regattas and marine parades: Seventh Coast Guard District; recurring marine events, 63839-63850 E7-21714 Commerce Commerce Department See International Trade Administration See National Oceanic and Atmospheric Administration Defense Defense Department See Navy Department NOTICES Senior Executive Service Performance Review Board; membership, 63890-63891 E7-22106 Education Education Department NOTICES Agency information collection activities; proposals, submissions, and approvals; correction, 63892 E7-22085 Meetings:
National Mathematics Advisory Panel, 63892-63893 E7-22132 Election Election Assistance Commission NOTICES Sunshine Act Meeting, 63893 07-5636 07-5637 Employment Employment and Training Administration NOTICES Adjustment assistance; applications, determinations, etc.: Management Business Solutions, LLC, 63929-63930 E7-22062 Precision Industries, 63930 E7-22058 Solutia, Inc., 63931 E7-22060 Southern Weaving Co., 63931-63932 E7-22059 Tifton Aluminum Co., 63932 E7-22061 Energy Energy Department See Energy Efficiency and Renewable Energy Office NOTICES Boundary establishment, descriptions, etc.:
Oak Ridge National Laboratory, TN; revision, 63893 E7-22109 Meetings: Environmental Management Site-Specific Advisory Board— Savannah River Site, SC, 63893-63894 E7-22096 Energy Energy Efficiency and Renewable Energy Office NOTICES Meetings: Biomass Research and Development Technical Advisory Committee, 63894 E7-22095 EPA Environmental Protection Agency PROPOSED RULES Air quality implementation plans Preparation, adoption, and submittal— Prevention of significant deterioration and nonattainment new source review; fugitive emissions inclusion; reconsideration, 63850-63866 E7-22131 NOTICES Agency information collection activities; proposals, submissions, and approvals, 63895-63896 E7-22154 Meetings:
Total Coliform Rule Distribution System Advisory Committee, 63896 E7-22116 Executive Executive Office of the President See Management and Budget Office See Presidential Documents FAA Federal Aviation Administration RULES Aircraft: Production and airworthiness approval requirements; standardization, 63797-63800 E7-22111 Airworthiness directives: Airbus; correction, 63805 E7-21996 Boeing, 63800-63805 07-5635 PROPOSED RULES Airworthiness directives: Boeing, 63831-63833 E7-22104 Bombardier, 63827-63829, 63834-63836 E7-22103 E7-22146 Dassault, 63829-63831 E7-22102 McDonnell Douglas, 63836-63838 E7-22090 FCC Federal Communications Commission RULES Radio frequency devices:
Ultra-wideband transmission systems; unlicensed operation; correction, 63823 E7-22124 Radio stations; table of assignments: Kentucky, 63823 E7-22118 PROPOSED RULES Radio services, special: Private land mobile services— 800 MHz band; improving public safety communications, 63869-63871 E7-22128 Radio stations; table of assignments: Arizona, 63866-63867 E7-22119 California, 63867-63868 E7-22120 E7-22121 Oklahoma, 63868-63869 E7-22123 NOTICES Agency information collection activities; proposals, submissions, and approvals, 63896-63898 E7-22112 E7-22122 Federal Election Federal Election Commission NOTICES Meetings;
Sunshine Act, 63898 07-5651 Federal Highway Federal Highway Administration NOTICES Environmental statements; notice of intent: Davidson County, TN, 63957 E7-22126 Federal Reserve Federal Reserve System NOTICES Banks and bank holding companies: Change in bank control, 63898-63899 E7-22105 Fish Fish and Wildlife Service NOTICES Environmental statements; availability, etc.: Migrant peregrine falcons in U.S.; take for use in falconry, 63921 E7-21936 Riverside County, CA; Coachella Valley multiple species habitat conservation plan and natural community conservation plan, 63922-63924 E7-22087 Food Food and Nutrition Service RULES Child nutrition programs:
National School Lunch, Special Milk and School Breakfast Programs— Free and reduced price meals, 63785-63796 E7-22053 Health Health and Human Services Department See Centers for Disease Control and Prevention See Centers for Medicare & Medicaid Services See Children and Families Administration See National Institutes of Health NOTICES Agency information collection activities; proposals, submissions, and approvals, 63899 E7-22086 Meetings: Chronic Fatigue Syndrome Advisory Committee, 63899-63900 E7-22100 National Toxicology Program:
Carcinogens Report— Botanical products containing aristolochic acid and aristolochic acid and riddelliine; aristolochic acid related exposures and riddelliine; expert panel mee, 63900-63901 E7-22178 Homeland Homeland Security Department See Coast Guard See Transportation Security Administration See U.S. Customs and Border Protection NOTICES Meetings: Closed circuit television (CCTV); privacy best practices development; workshop, 63918-63919 E7-22127 Housing Housing and Urban Development Department NOTICES Privacy Act; systems of records, 63919-63921 E7-22077 Indian Indian Affairs Bureau NOTICES Reservation establishment, additions, etc.
Nottawaseppi Huron Band of Potawatomi Indians of Michigan, 63924 E7-22158 Interior Interior Department See Fish and Wildlife Service See Indian Affairs Bureau See Land Management Bureau See National Park Service IRS Internal Revenue Service RULES Income taxes: Employer-owned life insurance contracts; information reporting requirements, 63806-63807 E7-22137 Railroad track maintenance credit, 63813-63822 E7-22142 Procedure and administration: Corporate income tax returns and organizations filing returns under section 6033; magnetic media requirement, 63807-63813 E7-22147 PROPOSED RULES Income taxes:
Employer owned life insurance contracts; information reporting requirements, 63838-63839 E7-22136 NOTICES Agency information collection activities; proposals, submissions, and approvals, 63958 E7-22138 International International Trade Administration NOTICES Antidumping: Orange juice from— Brazil, 63874-63875 E7-22185 Countervailing duties: Circular welded carbon quality steel pipe from— China, 63875-63886 E7-22144 North American Free Trade Agreement (NAFTA); binational panel reviews:
Gray portland cement and clinker from— Mexico, 63886-63887 E7-22174 *Applications, hearings, determinations, etc.:* Battelle Memorial Institute et al., 63875 E7-22151 International International Trade Commission NOTICES Meetings; Sunshine Act, 63926 E7-22081 Justice Justice Department NOTICES Agency information collection activities; proposals, submissions, and approvals, E7-22075 63927-63929 E7-22076 E7-22078 Labor Labor Department See Employment and Training Administration NOTICES Agency information collection activities; proposals, submissions, and approvals, 63929 E7-22080 Land Land Management Bureau NOTICES Closure of public lands:
Oregon, 63924-63926 E7-22170 Meetings: Resource Advisory Councils— Northwest Colorado, 63926 07-5598 Management Management and Budget Office RULES Grants and cooperative agreements: Trafficking in persons, 63783-63785 E7-22056 Maritime Maritime Administration NOTICES Coastwise trade laws; administrative waivers: CROWN JEWEL, 63957-63958 E7-21970 National Credit National Credit Union Administration NOTICES Meetings; Sunshine Act, 63932 07-5650 NIH National Institutes of Health NOTICES Meetings:
National Center for Complementary and Alternative Medicine, 63915 07-5621 National Heart, Lung, and Blood Institute, 63915-63916 07-5620 National Institute of Allergy and Infectious Diseases, 63917 07-5622 National Institute of Child Health and Human Development, 63916-63917 07-5618 07-5619 National Institute of Dental and Craniofacial Research, 63916 07-5615 07-5617 National Institute of Neurological Disorders and Stroke, 63916 07-5614 Recombinant DNA Advisory Committee, 63917-63918 07-5616 NOAA National Oceanic and Atmospheric Administration RULES Marine mammals:
Commercial fishing authorizations— Atlantic Large Whale Take Reduction Plan, 63824-63826 07-5623 PROPOSED RULES Fishery conservation and management: Alaska; fisheries of Exclusive Economic Zone— Bering Sea and Aleutian Islands groundfish, crab, salmon, and scallop, 63871-63872 E7-22107 NOTICES Grants and cooperative agreements; availability, etc.: Sustainable Fisheries Leadership Awards Program, 63887-63888 E7-22145 Reports and guidance documents; availability, etc.: U.S. Atlantic and Gulf of Mexico small coastal sharks; stock assessment, 63888-63889 E7-22115 Scientific research permit applications, determinations, etc., 63889-63890 E7-22108 National Park National Park Service NOTICES National Register of Historic Places; pending nominations, 63926 07-5613 National Science National Science Foundation NOTICES Agency information collection activities; proposals, submissions, and approvals, 63932-63933 07-5629 Navy Navy Department NOTICES Environmental statements; notice of intent:
Three NIMITZ-class aircraft carriers in support of U.S. Pacific Fleet; home port facilities development, 63891 E7-22172 Meetings: Naval Academy, Board of Visitors, 63891 E7-22113 Patent licenses; non-exclusive, exclusive, or partially exclusive: Electro-Optic Instruments, Inc., 63891-63892 E7-22097 Nuclear Nuclear Regulatory Commission NOTICES Environmental statements; availability, etc.: Rio Algom Mining LLC, 63934-63935 E7-22114 Reports and guidance documents; availability, etc.:
Materials licenses; program-specific guidance about possession licenses for production of radioactive material using an accelerator; consolidated guidance, 63942-63943 E7-22157 Technical specification improvement to revise control rod notch surveillance frequency; model safety evaluation, 63935-63942 E7-22159 *Applications, hearings, determinations, etc.:* Entergy Nuclear Vermont Yankee, LLC, et al., 63933-63934 E7-22093 Office Office of Management and Budget See Management and Budget Office Personnel Personnel Management Office NOTICES Privacy Act; systems of records; correction, 63960 Z7-20797 Presidential Presidential Documents ADMINISTRATIVE ORDERS Iran; continuation of national emergency (Notice of November 8, 2007), 63965 07-5658 Weapons of mass destruction; continuation of national emergency (Notice of November 8, 2007), 63961-63963 07-5657 SEC Securities and Exchange Commission NOTICES Self-regulatory organizations; proposed rule changes:
Chicago Board Options Exchange, Inc., 63944-63945 E7-22098 Financial Industry Regulatory Authority, Inc., 63945-63946 E7-22064 New York Stock Exchange, LLC, 63946-63950 E7-22066 E7-22099 Social Social Security Administration NOTICES Meetings: Ticket to Work and Work Incentives Advisory Panel, 63950 E7-22171 State State Department NOTICES Agency information collection activities; proposals, submissions, and approvals; correction, 63960 Z7-21855 Culturally significant objects imported for exhibition:
Projects 86: Gert & Uwe Tobias, 63950 E7-22152 Meetings: Fine Arts Committee, 63951 E7-22143 International Telecommunication Advisory Committee, 63951 E7-22140 Private International Law Advisory Committee, 63951 E7-22139 Transportation Transportation Department See Federal Aviation Administration See Federal Highway Administration See Maritime Administration NOTICES Grants and cooperative agreements; availability, etc.: Congestion-Reduction Demonstration Initiatives, 63951-63956 E7-22117 Meetings:
Intelligent Transportation Systems Program Advisory Committee, 63956-63957 E7-22148 Transportation Transportation Security Administration NOTICES Transportation Worker Identification Credential Program: Enrollment dates for Port of Houston, TX et al., 63919 E7-22072 Treasury Treasury Department See Internal Revenue Service Customs U.S. Customs and Border Protection RULES Automated Commercial Environment Truck Manifest System: Advance electronic truck cargo information; ports of entry— Alaska, 63805-63806 E7-22133 Veterans Veterans Affairs Department NOTICES Meetings:
Environmental Hazards Advisory Committee, 63959 07-5633 Separate Parts In This Issue Part II Executive Office of the President, Presidential Documents, 63961-63963, 63965 07-5657 07-5658 Reader Aids Consult the Reader Aids section at the end of this issue for phone numbers, online resources, finding aids, reminders, and notice of recently enacted public laws. To subscribe to the Federal Register Table of Contents LISTSERV electronic mailing list, go to http://listserv.access.gpo.gov and select Online mailing list archives, FEDREGTOC-L, Join or leave the list (or change settings); then follow the instructions. 72 218 Tuesday, November 13, 2007 Rules and Regulations OFFICE OF MANAGEMENT AND BUDGET 2 CFR Part 175 Trafficking in Persons:
Grants and Cooperative Agreements AGENCY: Office of Federal Financial Management, Office of Management and Budget. ACTION: Interim final guidance. SUMMARY: The Office of Federal Financial Management
(OFFM)is establishing a government-wide award term for agencies to include in grants and cooperative agreements as part of their implementation of paragraph
(g)of section 106 of the Trafficking Victims Protection Act of 2000, as amended (22 U.S.C. 7104). In each award under which funding is provided to a private entity, the statute requires the awarding agency to include a condition authorizing termination of the award if the recipient or a subrecipient engages in certain activities related to trafficking in persons. DATES: The effective date for this interim final guidance is December 13, 2007. To be considered in preparation of the final guidance, comments on the interim final guidance must be received by January 14, 2008. ADDRESSES: Due to potential delays in OMB's receipt and processing of mail sent through the U.S. Postal Service, we encourage respondents to submit comments electronically to ensure timely receipt. We cannot guarantee that comments mailed will be received before the comment closing date. Electronic mail comments may be submitted to: *mpridgen@omb.eop.gov* . Please include “OMB Trafficking in Persons guidance” in the subject line of your e-mail message. Also, please include the full body of your comments in the text of the electronic message, as well as in an attachment. Please include your name, title, organization, postal address, telephone number, and e-mail address in the text of the message. Comments may also be submitted via facsimile to
(202)395-3952 or by mail at 725 17th St., NW., Room 6025, Washington, DC 20503. FOR FURTHER INFORMATION CONTACT: Marguerite Pridgen, Office of Federal Financial Management, Office of Management and Budget, telephone
(202)395-7844 (direct) or
(202)395-3993 (main office) and e-mail: *mpridgen@omb.eop.gov* . SUPPLEMENTARY INFORMATION: I. Background In the Trafficking Victims Protection Reauthorization Act of 2003 (Pub. L. 108-193, § 3), Congress amended the Trafficking Victims Protection Act of 2000 (TVPA; Pub. L. No. 106-386, Div. A). One of the amendments was the addition of a new paragraph
(g)to section 106 of the TVPA (Section 106 is codified at 22 U.S.C. 7104). Paragraph
(g)provides that: “Any grant, contract, or cooperative agreement provided or entered into by a Federal department or agency under which funds are to be provided to a private entity, in whole or in part, shall include a condition that authorizes the department or agency to terminate the grant, contract, or cooperative agreement, without penalty, if the grantee or any subgrantee, or the contractor or any subcontractor
(i)engages in severe forms of trafficking in persons or has procured a commercial sex act during the period of time that the grant, contract, or cooperative agreement is in effect, or
(ii)uses forced labor in the performance of the grant, contract, or cooperative agreement.” As originally added in 2003, subsection
(g)applied to “funds made available to carry out any program, project, or activity abroad funded under major functional budget category 150 (relating to international affairs).” Following the enactment of the 2003 Act, the President issued Executive Order
(EO)No. 13333 (69 FR 13455; March 23, 2004), which implemented this new subsection 106(g) by amending EO No. 13257. One of the amendments to EO 13257 was the addition of a new Section 5 (“Enhanced Prevention of Trafficking in Persons”), which provides in part that “[e]ach affected executive branch department or agency shall implement, within that department or agency, the requirements set out in section 106(g) of the Act with respect to grants and cooperative agreements.” Section 106(g) was subsequently amended in the Trafficking Victims Protection Reauthorization Act of 2005 (Pub. L. No. 109-164). Section 201(b) of this Act repealed the language that had previously stated that subsection
(g)applied with respect to “category 150” funding. As a result, section 106(g) now applies to all Federal grants and cooperative agreements under which funds would be provided to private entities. In implementing Section 106(g), as amended, it is important to ensure effective government-wide implementation of this national policy. To that end, we are issuing, on an interim final basis, a Government-wide standard award term (and related guidance) on trafficking in persons for agencies to include in their grants and cooperative agreements. This award term was developed by an interagency workgroup under the Grants Policy Committee of the Chief Financial Officers Council. II. Next Steps We will consider all comments received on the interim final version of the OMB guidance as we develop the final guidance. Federal agencies that award grants or cooperative agreements will implement the guidance through appropriate regulations and award terms. List of Subjects in 2 CFR Part 175 Administrative practice and procedure, Colleges and universities, Cooperative agreements, Grant programs, Grants administration, Hospitals, Indians—tribal government, Industry, Nonprofit organizations, State and local governments, Trafficking in persons. Danny Werfel, Acting Controller. For the reasons set forth above, the Office of Management and Budget amends 2 CFR chapter I by adding a part 175 to read as follows: PART 175—AWARD TERM FOR TRAFFICKING IN PERSONS Sec. 175.5 Purpose of this part. 175.10 Statutory requirement. 175.15 Award term. 175.20 Referral. 175.25 Definitions. Authority: 22 U.S.C. 7104(g); 31 U.S.C. 503; 31 U.S.C. 1111; 41 U.S.C. 405; Reorganization Plan No. 2 of 1970; E.O. 11541, 35 FR 10737, 3 CFR, 1966-1970, p. 939. § 175.5 Purpose of this part. This part establishes a Governmentwide award term for grants and cooperative agreements to implement the requirement in paragraph
(g)of section 106 of the Trafficking Victims Protection Act of 2000 (TVPA), as amended (22 U.S.C. 7104(g)). § 175.10 Statutory requirement. In each agency award (i.e., grant or cooperative agreement) under which funding is provided to a private entity, section 106(g) of the TVPA, as amended, requires the agency to include a condition that authorizes the agency to terminate the award, without penalty, if the recipient or a subrecipient—
(a)Engages in severe forms of trafficking in persons during the period of time that the award is in effect;
(b)Procures a commercial sex act during the period of time that the award is in effect; or
(c)Uses forced labor in the performance of the award or subawards under the award. § 175.15 Award term.
(a)To implement the trafficking in persons requirement in section 106(g) of the TVPA, as amended, a Federal awarding agency must include the award term in paragraph
(b)of this section in—
(1)A grant or cooperative agreement to a private entity, as defined in § 175.25(d); and
(2)A grant or cooperative agreement to a State, local government, Indian tribe or foreign public entity, if funding could be provided under the award to a private entity as a subrecipient.
(b)The award term that an agency must include, as described in paragraph
(a)of this section, is: I. Trafficking in persons. a. *Provisions applicable to a recipient that is a private entity* . 1. You as the recipient, your employees, subrecipients under this award, and subrecipients' employees may not— i. Engage in severe forms of trafficking in persons during the period of time that the award is in effect; ii. Procure a commercial sex act during the period of time that the award is in effect; or iii. Use forced labor in the performance of the award or subawards under the award. 2. We as the Federal awarding agency may unilaterally terminate this award, without penalty, if you or a subrecipient that is a private entity — i. Is determined to have violated a prohibition in paragraph a.1 of this award term; or ii. Has an employee who is determined by the agency official authorized to terminate the award to have violated a prohibition in paragraph a.1 of this award term through conduct that is either— A. Associated with performance under this award; or B. Imputed to you or the subrecipient using the standards and due process for imputing the conduct of an individual to an organization that are provided in 2 CFR part 180, “OMB Guidelines to Agencies on Governmentwide Debarment and Suspension (Nonprocurement),” as implemented by our agency at *[agency must insert reference here to its regulatory implementation of the OMB guidelines in 2 CFR part 180 (e.g., “2 CFR part XX”)]* . b. *Provision applicable to a recipient other than a private entity* . We as the Federal awarding agency may unilaterally terminate this award, without penalty, if a subrecipient that is a private entity— 1. Is determined to have violated an applicable prohibition in paragraph a.1 of this award term; or 2. Has an employee who is determined by the agency official authorized to terminate the award to have violated an applicable prohibition in paragraph a.1 of this award term through conduct that is either— i. Associated with performance under this award; or ii. Imputed to the subrecipient using the standards and due process for imputing the conduct of an individual to an organization that are provided in 2 CFR part 180, “OMB Guidelines to Agencies on Governmentwide Debarment and Suspension (Nonprocurement),” as implemented by our agency at *[agency must insert reference here to its regulatory implementation of the OMB guidelines in 2 CFR part 180 (e.g., “2 CFR part XX”)]* . c. *Provisions applicable to any recipient* . 1. You must inform us immediately of any information you receive from any source alleging a violation of a prohibition in paragraph a.1 of this award term. 2. Our right to terminate unilaterally that is described in paragraph a.2 or b of this section: i. Implements section 106(g) of the Trafficking Victims Protection Act of 2000 (TVPA), as amended (22 U.S.C. 7104(g)), and ii. Is in addition to all other remedies for noncompliance that are available to us under this award. 3. You must include the requirements of paragraph a.1 of this award term in any subaward you make to a private entity. d. *Definitions* . For purposes of this award term: 1. “Employee” means either: i. An individual employed by you or a subrecipient who is engaged in the performance of the project or program under this award; or ii. Another person engaged in the performance of the project or program under this award and not compensated by you including, but not limited to, a volunteer or individual whose services are contributed by a third party as an in-kind contribution toward cost sharing or matching requirements. 2. “Forced labor” means labor obtained by any of the following methods: the recruitment, harboring, transportation, provision, or obtaining of a person for labor or services, through the use of force, fraud, or coercion for the purpose of subjection to involuntary servitude, peonage, debt bondage, or slavery. 3. “Private entity”: i. Means any entity other than a State, local government, Indian tribe, or foreign public entity, as those terms are defined in 2 CFR 175.25. ii. Includes: A. A nonprofit organization, including any nonprofit institution of higher education, hospital, or tribal organization other than one included in the definition of Indian tribe at 2 CFR 175.25(b). B. A for-profit organization. 4. “Severe forms of trafficking in persons,” “commercial sex act,” and “coercion” have the meanings given at section 103 of the TVPA, as amended (22 U.S.C. 7102).
(c)An agency may use different letters and numbers to designate the paragraphs of the award term in paragraph
(b)of this section, if necessary, to conform the system of paragraph designations with the one used in other terms and conditions in the agency's awards. § 175.20 Referral. An agency official should inform the agency's suspending or debarring official if he or she terminates an award based on a violation of a prohibition contained in the award term under § 175.15. § 175.25 Definitions. Terms used in this part are defined as follows:
(a)*Foreign public entity* means:
(1)A foreign government or foreign governmental entity;
(2)A public international organization, which is an organization entitled to enjoy privileges, exemptions, and immunities as an international organization under the International Organizations Immunities Act (22 U.S.C. 288-288f);
(3)An entity owned (in whole or in part) or controlled by a foreign government; and
(4)Any other entity consisting wholly or partially of one or more foreign governments or foreign governmental entities.
(b)*Indian tribe* means any Indian tribe, band, nation, or other organized group or community, including any Alaskan Native village or regional or village corporation (as defined in, or established under, the Alaskan Native Claims Settlement Act (43 U.S.C. 1601, *et seq.* )) that is recognized by the United States as eligible for the special programs and services provided by the United States to Indians because of their status as Indians.
(c)*Local government* means a:
(1)County;
(2)Borough;
(3)Municipality;
(4)City;
(5)Town;
(6)Township;
(7)Parish;
(8)Local public authority, including any public housing agency under the United States Housing Act of 1937;
(9)Special district;
(10)School district;
(11)Intrastate district;
(12)Council of governments, whether or not incorporated as a nonprofit corporation under State law; and
(13)Any other instrumentality of a local government.
(d)*Private entity.*
(1)This term means any entity other than a State, local government, Indian tribe, or foreign public entity.
(2)This term includes:
(i)A nonprofit organization, including any nonprofit institution of higher education, hospital, or tribal organization other than one included in the definition of Indian tribe in paragraph
(b)of this section.
(ii)A for-profit organization.
(e)*State* , consistent with the definition in section 103 of the TVPA, as amended (22 U.S.C. 7102), means:
(1)Any State of the United States;
(2)The District of Columbia;
(3)Any agency or instrumentality of a State other than a local government or State-controlled institution of higher education;
(4)The Commonwealths of Puerto Rico and the Northern Mariana Islands; and
(5)The United States Virgin Islands, Guam, American Samoa, and a territory or possession of the United States. [FR Doc. E7-22056 Filed 11-9-07; 8:45 am] BILLING CODE 3110-01-P DEPARTMENT OF AGRICULTURE Food and Nutrition Service 7 CFR Parts 210, 215, 220, 235 and 245 [FNS-2007-0023] RIN 0584-AD54 Applying for Free and Reduced Price Meals in the National School Lunch Program and School Breakfast Program and for Benefits in the Special Milk Program and Technical Amendments AGENCY: Food and Nutrition Service, USDA. ACTION: Interim Rule. SUMMARY: This interim rule amends the regulations on eligibility determinations for free and reduced price school meals to implement nondiscretionary provisions of the Child Nutrition and WIC Reauthorization Act of 2004. In this interim rule, the statutory definition of “local educational agency” is added. In addition, this interim rule specifies that a family only has to submit one application for all children in the household as long as they attend schools in the same local educational agency and requires enhancement of the descriptive materials distributed to families. This rule provides for electronically-submitted applications, addresses electronic signatures and establishes use and disclosure standards for such applications. This rule establishes that eligibility for free or reduced price school meals remains valid for one year unless the household chooses to decline a level of benefits. These changes are intended to provide children with increased access to the school nutrition programs by simplifying the certification process, streamlining program operations and improving program management. DATES: *Effective date:* This rule is effective December 13, 2007. *Comment date:* To be assured of consideration, mailed comments must be postmarked on or before May 12, 2008; e-mailed or faxed comments must be submitted by 11:59 p.m. May 12, 2008; and hand-delivered comments must be received by 5 p.m. May 12, 2008. ADDRESSES: The Food and Nutrition Service invites interested persons to submit comments on this interim rule. Comments may be submitted by any of the following methods: • *Federal eRulemaking Portal:* Go to *http://www.regulations.gov.* Follow the online instructions for submitting comments. • *Mail:* Address comments to Mr. Robert M. Eadie, Chief, Policy and Program Planning Branch, Child Nutrition Division, Food and Nutrition Service, Department of Agriculture, 3101 Park Center Drive, Room 640, Alexandria, Virginia 22302-1594. • *Fax:* Submit comments by facsimile transmission to:
(703)305-2879, attention Mr. Robert M. Eadie. • *Hand Delivery or Courier:* Deliver comments to 3101 Park Center Drive, Room 640, Alexandria, Virginia 22302-1594, during normal business hours of 8:30 a.m.-5 p.m. All comments submitted in response to this interim rule will be included in the record and will be made available to the public. Please be advised that the substance of the comments and the identity of the individuals or entities submitting the comments will be subject to public disclosure. All submissions will be available for public inspection at the address noted above Monday through Friday, 8:30 a.m.-5 p.m. The Department may also make the comments available on the Federal eRulemaking portal. FOR FURTHER INFORMATION CONTACT: Mr. Robert Eadie, Child Nutrition Division, Food and Nutrition Service at 703-305-2590. SUPPLEMENTARY INFORMATION: I. Background Public Law 108-265, the Child Nutrition and WIC Reauthorization Act of 2004, enacted June 30, 2004, amended the Richard B. Russell National School Lunch Act
(NSLA)(42 U.S.C. 1751 *et seq.* ) and the Child Nutrition Act of 1966
(CNA)(42 U.S.C. 1771 *et seq.* ) concerning applications for free and reduced price meals under the National School Lunch Program and the School Breakfast Program, and for free milk under the Special Milk Program for Children. Please note that while the application and certification procedures apply to the Special Milk Program, the preamble will only discuss free and reduced price meal benefits, as only a very small number of children participate in the Special Milk Program. However, this interim rule makes appropriate changes to the Special Milk Program regulations. All references to regulatory citations in this preamble are to Title 7, United States Code unless otherwise indicated. In response to the statutorily imposed effective dates established by sections 501 and 502 of Public Law 108-265, the Department of Agriculture (USDA or the Department) issued memoranda to implement some of the provisions regulatorily codified in this interim rule. These memoranda include the July 7, 2004 Duration of Households' Free and Reduced Price Meal Eligibility—Reauthorization 2004 Implementation Memo—SP 3; the March 7, 2005 Statutory Changes in the Free and Reduced Price Eligibility Determination Process and Revised Prototype Application—Implementation Memo—SP 12; the August 30, 2005 Initial Carry-over of Previous Year's Eligibility—Reauthorization Implementation Memo—SP 17; the September 26, 2005 memo General Follow-up of Provisions—Reauthorization 2004 Implementation Memo—SP 21; the November 22, 2005 memo SP 03-2006, Translation of Free and Reduced Price Application Prototypes for People with Limited English Proficiency; the December 23, 2005 memo, SP 08-2006 Reauthorization 2004: Communication with Households; and the February 9, 2006 memo Commercial Software Used in School Nutrition Programs; all located at *http://www.fns.usda.gov/cnd/* click on Policy under “See Also”. This interim rule includes modifications made by Public Law 108-265 that necessitated changes to the existing regulatory procedures relating to application and certification for free and reduced price meal benefits. This rule also adds definitions and makes other technical changes to 7 CFR Part 210 (National School Lunch Program), 7 CFR Part 215 (Special Milk Program for Children), 7 CFR Part 220 (School Breakfast Program), 7 CFR Part 235 (State Administrative Expense Funds) and 7 CFR Part 245 (Determining Eligibility for Free and Reduced Meals and Free Milk in Schools) to increase consistency among these regulatory divisions in relation to application and certification requirements. Readers should note that while this interim regulation makes a number of changes to 7 CFR Part 245 (specifically § 245.6), separate rules on verification and direct certification will additionally revise this section, completing the changes mandated by Public Law 108-265. USDA's program guidance on eligibility determinations will be updated to reflect the regulatory changes resulting from Public Law 108-265. Also of note—updated prototype multi-child (household) applications in English, Spanish and 24 additional languages are now available at *http://www.fns.usda.gov/cnd/FRP/frp.process.htm.* In addition, this interim rule makes technical nonsubstantive changes to 7 CFR §§ 215.2, 220.2, 235.2, and 245.2, the definitions sections for these parts. The rule removes primary designations and alphabetizes the definitions. In addition, new definitions are added for “Food Stamps” and “Nonprofit.” II. Specific Provisions A. Definition of Local Educational Agency What was in place prior to Public Law 108-265? Prior to Public Law 108-265, the NSLA used the term “school food authority” to describe “the governing body which is responsible for the administration of one or more schools and has the legal authority to operate the Program therein or be otherwise approved by the Food and Nutrition Service to operate the Program.” The term is used consistently throughout regulations and guidance that govern all aspects of the school meals programs. There was no regulatory or statutory definition of local educational agency prior to the 2004 statutory amendment. What changes were made by Public Law 108-265? Section 108 of Public Law 108-265 replaced the terms “school food authorities” and “local school authorities” with the term “local educational agencies” in sections 9(b)(11) and 9(d)(2) of the NSLA, 42 U.S.C. 1758(b)(11) and (d)(2), and in section 4(b)(1)(E) of the CNA, 42 U.S.C. 1773 (b)(1)(E). The NSLA now specifies, in section 12(d)(4), (42 U.S.C. 1761 (d)(4)), that local educational agency has the meaning as provided for in section 9101 of the Elementary and Secondary Education Act of 1965
(ESEA)(20 U.S.C. 7801) and, for private nonprofit schools, entities as determined by the Secretary. In addition to section 108, other sections of Public Law 108-265 use the term “local educational agencies” instead of school food authorities or local school authorities. Under the ESEA, “local educational agency” means “a public board of education or other public authority legally constituted within a State for either administrative control or direction of, or to perform a service function for, public elementary schools or secondary schools in a city, county, township, school district, or other political subdivision of a State, or of or for a combination of school districts or counties that is recognized in a State as an administrative agency for its public elementary schools or secondary schools.” The definition in the ESEA also includes any other public institution or agency having administrative control and direction of a public elementary school or secondary school, eligible Bureau of Indian Affairs schools, educational service agencies and consortia of those agencies, and the State educational agency in a State in which the State educational agency is the sole educational agency for all public schools. The ESEA, however, does not address non-profit private schools in its definition. Such schools do participate in the school meals programs. For the purposes of the school meals programs, the Department currently defines schools to include nonprofit private as well as public entities for the purposes of the school meals programs. It also defines nonprofit for the purposes of the school meals and school milk programs. What are the changes that this interim rule makes? The term “local educational agency” will be used when discussing certification and verification requirements, but the term “school food authority” will continue to be used when addressing other aspects of operating the school meals programs, such as when discussing agreements or nutritional requirements. Because the ESEA does not define private nonprofit schools, section 108 of Public Law 108-265 states that the term local educational agency includes, for the purposes of a private nonprofit school, an appropriate entity determined by the Secretary. Current school meals programs regulations, at §§ 210.2 and 220.2, recognize private nonprofit schools and nonprofit private residential child care institutions in the definition of “School.” As a result, for schools meals programs purposes, local educational agencies may be comprised of private, nonprofit schools/institutions. The terms private nonprofit school and private nonprofit residential child care institution in the definition of “Local educational agency” have the same meaning as used in the paragraphs
(b)and
(c)of the definition of “School” in § 210.2 and in corresponding regulatory provisions in Parts 215, 220, 235 and 245. A definition of “Local educational agency” is added to §§ 210.2, 215.2, 220.2, 235.2 and 245.2. B. Applications and Descriptive Materials 1. Household Applications What was in place prior to Public Law 108-265? Prior to Public Law 108-265, a State or school food authority could require an application for each potentially eligible child in the household (single child application) or one application for all potentially eligible children in the household (household application). The Department provided prototypes for each of these types of applications. Under existing regulations, single child applications are used for foster and institutionalized children. This is in accordance with § 245.3(c) of existing regulations which states that any child who is not a member of a family, as defined in § 245.2, is considered a family of one. FNS Instruction 765-5, Revision 1, entitled “Free and Reduced Price Eligibility Determinations for Foster and Institutionalized Children” (March 19, 1986) clarifies that foster children and institutionalized children are considered households of one, thus triggering use of the single child application. What changes were made by Public Law 108-265? Section 105 of Public Law 108-265 revised section 9(b)(3) of the NSLA to require local educational agencies to only use household applications. The provision became effective on July 1, 2005, pursuant to Section 502 of Public Law 108-265. Therefore, effective July 1, 2005, only household applications may be used when all school age children in a household attend schools in the same local educational agency. This change was made to decrease paperwork for households who wish to apply and schools by eliminating multiple application completion and submission for households with more than one child. What are the changes that this interim rule makes? This interim rule adds a definition of “Household application” in § 245.2, and stipulates in § 245.6(a) that the household application must identify all children in the household for whom free or reduced price meal benefits are being requested. A household has the same definition as “Family” in § 245.2; that is, a group of related or non-related individuals, who are not residents of an institution or boarding house, but who are living as one economic unit. This rule also prohibits State agencies and local educational agencies from requesting separate applications for each child attending schools in the same local educational agency. A household only has to submit one application for all children in their household (even if the children attend different schools) as long as those schools are in the same local educational agency. To clarify, however, since § 245.3(c) of the regulations requires that each foster or institutionalized child be considered a family of one, a separate application will continue to be needed for each such child in the household's care. This change does not mandate central processing of applications. However, the Department encourages all local educational agencies to use centralized approval of applications whenever possible. Local educational agencies need to ensure that children who transfer to schools within the same local educational agency are not required to reapply for free or reduced price meal benefits as stated in existing regulations at § 245.3(c). Copies of the approved application or the direct certification notice may be provided to the new school. Since applications must still be tied to individual schools for reviews conducted by State agencies, a local educational agency may establish a separate record for each child for tracking purposes. These changes may be found at § 245.6(a)(1). 2. Notification of Possible Eligibility What was in place prior to Public Law 108-265? Prior to Public Law 108-265, section 9(b) of the NSLA required that applications for free and reduced price school meals and descriptive materials about school meal programs must be distributed to parents and guardians. Existing regulations require that the school meal application and media materials include notification that State Temporary Assistance for Needy Families (TANF), Food Stamp Program, and Food Distribution Program on Indian Reservations (FDPIR) participants can submit an application with a case number rather than income information. What changes were made by Public Law 108-265? Effective July 1, 2005, section 104(a) of Public Law 108-265 amended section 9(b)(2) of the NSLA to require that school meal applications and descriptive materials distributed to parents and guardians contain a notification that, in addition to the notification already provided pursuant to school meals programs provisions, notification that participants in the Special Supplemental Nutrition Program for Women, Infants, and Children
(WIC)may be eligible for free or reduced price school meals. It is important to note that this does not mean that children from families that participate in WIC are automatically (categorically) eligible; rather it means that such participants are likely to be eligible and should consider applying for free or reduced priced meals. What are the changes that this interim rule makes? This interim rule adds the requirement that the school meal application's descriptive materials include notification that WIC participants may be eligible for free or reduced price meals. The updated free and reduced price meal benefits prototype application includes this notification. Please refer to our Web site ( *http://www.fns.usda.gov/cnd/FRP/frp.process.htm* ). This change can be found in § 245.5(a)(1)(ix) of this interim regulation. 3. Communications What was in place prior to Public Law 108-265? Under Federal regulations implementing Title VI of the Civil Rights Act of 1964, recipients of Federal financial assistance, such as school food authorities, have a responsibility to ensure meaningful access to their programs by persons with limited English proficiency. Prior to Public Law 108-265, the NSLA did not specifically address providing materials in other than English for the school meal programs. Current regulations at § 245.6(a) mandate that the school meals programs application be clear and simple in design and that the information requested be limited to that required to demonstrate that the family does, or does not, meet the eligibility criteria for free or reduced price meals. In regard to foreign language translations, the Department encourages schools to provide households with assistance in completing applications through the use of personnel proficient in foreign languages. To assist schools with providing simpler applications and applications in other languages, the Department worked with a contractor in 2002 that specialized in form design and language simplification to provide an application with a reduced reading level and in a format that is easier to accurately complete. In 2006, the application materials for the free and reduced price prototype application and descriptive materials were translated into Spanish and 24 additional languages. If foreign language materials for a particular language are not available, local educational agencies are always encouraged to provide assistance with completion of English language school meals programs applications through the use of personnel proficient in the necessary foreign language(s) as well as English. What changes were made by Public Law 108-265? In addition to the responsibilities established under Title VI of the Civil Rights Act of 1964, section 104(b) of Public Law 108-265, effective July 1, 2005, amended section 9(b) of the NSLA to require that any communication with households regarding application, verification, or documentation of eligibility must be in an understandable and uniform format and, to the maximum extent practicable, in a language that parents and legal guardians can understand. What are the changes that this interim rule makes? This interim rule amends the existing regulations that to state that the school meals programs application must be clear and simple in design. This rule adds language reflecting the statutory requirement that any communication with households regarding certification be understandable, and to the maximum extent practicable, provided in a language that the parents and guardians can understand is being added at § 245.6(a)(2). A similar statement concerning verification materials is being added at § 245.6a (a)(2). 4. Electronic Applications What was in place prior to Public Law 108-265? There were no provisions in the NSLA prior to Public Law 108-265 that addressed electronic applications and electronic signatures. Current regulations do not address use of these methods, but do permit the use of electronic applications and electronic signatures in keeping with pertinent administrative guidance. Currently the Department allows electronic signatures and recommends that State agencies follow the same guidelines provided to Federal agencies for electronic transactions by the Department of Justice. The May 1, 2007, memorandum “Update on Electronic Transactions in the Child Nutrition Programs” may be found at *http://www.fns.usda.gov/cnd/Governance/Policy-Memos/2007/SP_10-2007.* What changes were made by Public Law 108-265? Effective July 1, 2005, section 104(b) of Public Law 108-265 amended section 9(b)(3) of the NSLA to address electronic signatures and applications. The law states that a household application may be executed using an electronic signature if the application is submitted electronically and if the electronic application system meets confidentiality standards established by the Secretary. An electronic signature may be accepted pursuant to section 105(a) of Public Law 108-265. What are the changes that this interim rule makes? Many State and local educational agencies already have systems available to households that allow them to submit an application electronically and the Department encourages State and local agencies to facilitate the household's ability to apply electronically. This interim rule incorporates the provisions on electronic submissions in the NSLA. In addition, such systems must comply with technical assistance and guidance provided by the Department. On May 1, 2007, we provided such guidance based on guidelines for electronic transactions prescribed to Federal agencies by the Department of Justice. C. Duration of Eligibility for Free or Reduced Price Meals What was in place prior to Public Law 108-265? Prior to Public Law 108-265, regulations at § 245.5(a)(1)(vi) and § 245.6(c)(1) directed that, households be informed that they must report income increases of more than $50 monthly, decreases in household size, or, for children certified based on an application containing a case number, termination of receipt of TANF, food stamp, or FDPIR benefits. If the change reduced children's benefits, the local school food authority was to adjust their eligibility status as appropriate, including providing advance notification of an adverse change in accordance with § 245.6a(e). The existing regulations at § 245.6(c) permit the use of applications and documentation of direct certification from the preceding year to determine eligibility during the 30 operating days following the first operating day at the beginning of the school year, or during a timeframe established by the State agency, that cannot exceed the 30 operating day limit. What changes were made by Public Law 108-265? Effective July 1, 2004, section 106 of Public Law 108-265 amended section 9(b)(9) of the NSLA by establishing that eligibility, beginning on the date of approval, is valid for the full school year until a date in the subsequent school year determined by USDA. What are the changes that this interim rule makes? This rule provides for year long eligibility as now required by the NSLA. Therefore, once a child is determined eligible for free and reduced price meals, eligibility remains in effect from the date of eligibility determination for the current school year and for up to 30 operating days (as discussed in the next paragraph) into the next school year. A household is no longer required to report changes in income, household size or categorical eligibility status. Section 106 of Public Law 108-265 also required that a child's eligibility be valid into the subsequent school year. The Department used the long-standing permissive carry-over authority of current § 245.6(c) as the basis for the new requirement. Section 245.6(c)(2) of this rule mandates that local educational agencies carry-over a child's eligibility from the previous school year. The local educational agency must use the previous year's eligibility status for a period not to exceed 30 operating days or until the new eligibility determination is made, whichever comes first. Year-long eligibility does not apply when the initial eligibility determination was incorrect, when verification activities for the household do not support the level of benefits for which the child was approved or if an administrative review (as provided for in § 210.18) indicates that the initial eligibility determination was in error. In those instances, local educational agency officials must make appropriate changes in eligibility in accordance with regulatory requirements. These provisions may be found at new § 245.6(c)(3)(i) and (c)(3)(ii). Additionally, year-long eligibility does not apply when a household is given temporary approval. We continue to encourage determining officials to approve households on a temporary basis when their need for assistance appears to be short-term, such as when the household experiences a temporary reduction in income. A suggested time period for temporary approvals is 45 days unless otherwise stipulated by the State agency. At the end of the temporary approval, determining officials must re-evaluate the household's situation. The provision on temporary approval may be found at new § 245.6(c)(3)(iii). Additional information on the use of temporary approvals may be found in program guidance issued by the Department. With the exception of the situations described above, if a household's income exceeds the eligibility limits at any point during the school year, their initial eligibility determination remains valid unless a new application is submitted. Since the household is no longer required to report changes in income or household size or loss of food stamp or TANF benefits, this requirement is being deleted by removing paragraph (a)(1)(vi) from § 245.5 and by removing it as part of the revisions to § 245.6(c)(1). However, households may voluntarily report changes, may apply for benefits any time during the school year. The household may also decline benefits when children are directly certified. This provision may be found at new § 245.6(c)(6)(iii). As State child nutrition agencies and local educational agencies implement full-year eligibility, they have the opportunity to minimize disruptions when a child moves mid-year from one school district to another. They can do so by establishing an optional transfer of information system under which a child's school meal certification status is transferred from one school or local educational agency to another when the child moves. For example, States that maintain a database for all students could establish a data field to indicate the child's certification status—accessible only in accordance with the use or disclosure of information provisions set forth in section 9 of the NSLA—that could be checked by a school whenever a new student is enrolled. A local educational agency is not required to send this information, or accept this information from another local educational agency. However, this rule, at § 245.6(a)(4), includes a provision that allows any local educational agency to accept the eligibility determination from the student's old school district without incurring liability for the accuracy of the initial determination. D. Technical amendments 1. Numbering of Definitions Existing §§ 215.2, 220.2, 235.2, and 245.2 include “primary designations” (i.e. the letters and numbers that precede the words being defined) while § 210.2 simply lists definitions in alphabetical order. This interim rule removes primary designations in the listed sections, makes corresponding reference changes, and places the definitions in alphabetical order. This is being done to create uniformity among the regulations for the school nutrition programs and is technical in nature. 2. Adding Definition of Food Stamp Program For consistency among the school nutrition programs, a definition of “Food Stamp Program” is being added to § 245.2. The Food Stamp Program is also administered by USDA and the regulations governing this program may be found at 7 CFR Parts 271 through 283 of this Chapter. 3. Updating Definitions We are updating the definition of “Nonprofit” in our regulations to correspond to the definition in section 12(d)(5) of the NSLA and section 15(1) of the CNA which applies nonprofit status to schools and institutions which are exempt from tax under section 501(c)(3) of Internal Revenue Act of 1986. To accomplish this change, the definition of “Nonprofit” in §§ 210.2, 215.2 and 220.2 is amended. Also for consistency the definition of “Nonprofit” is added to §§ 235.2 and 245.2. The definition of “School” in § 215.2 is amended to remove an obsolete reference and the definition of “School” in § 235.2 is amended to remove an erroneous citation. III. Procedural Matters Executive Order 12866 This interim rule has been determined to be not significant for purposes of Executive Order 12866 and was not reviewed by the Office of Management and Budget in conformance with Executive Order 12866. Regulatory Flexibility Act This interim rule has been reviewed with regard to the requirements of the Regulatory Flexibility Act (5 U.S.C. 601-612). Roberto Salazar, Administrator of the Food and Nutrition Service, has certified that this rule will not have a significant economic impact on a substantial number of small entities. Households applying for free or reduced price school meals for their children will be affected as they can no longer be required by the school district to complete and submit an application for each child. Local educational agencies will also be affected because there will be fewer applications to process and there will be potential for more economically beneficial centralized systems. This rule will reduce paperwork and reduce the workload for school officials. Unfunded Mandate Reform Act Title II of the Unfunded Mandate Reform Act of 1995 (UMRA), Public Law 104-4, establishes requirements for Federal agencies to assess the effects of their regulatory actions on State, local, and tribal governments and the private sector. Under section 202 of the UMRA, the Food Nutrition Service must generally prepare a written statement, including a cost-benefit analysis, for proposed and final rules with “Federal mandates” that may result in expenditures to State, local or tribal governments, in the aggregate, or to the private sector, of $100 million or more in any one year. When such a statement is needed for a rule, section 205 of the UMRA generally requires the Department to identify and consider a reasonable number of regulatory alternatives and adopt the least costly, more cost-effective or least burdensome alternative that achieves the objectives of the rule. This rule contains no Federal mandates (under the regulatory provisions of Title II of the UMRA) for State, local and tribal governments or the private sector of $100 million or more in any one year. Thus, this interim rule is not subject to the requirements of sections 202 and 205 of the UMRA. Executive Order 12372 The National School Lunch Program, Special Milk Program, School Breakfast Program, and State Administrative Expense Funds are listed in the Catalog of Federal Domestic Assistance under Nos. 10.555, 10.556, 10.553 and 10.560, respectively. For the reasons set forth in the final rule in 7 CFR Part 3015, Subpart V, and final rule related notice at 48 FR 29114, June 24, 1983, these programs are included in the scope of Executive Order 12372, which requires intergovernmental consultation with State and local officials. Executive Order 13132—Federalism Summary Impact Statement Executive Order 13132 requires Federal agencies to consider the impact of their regulatory actions on State and local governments. Where such actions have federalism implications, agencies are directed to provide a statement for inclusion in the preamble to the regulations describing the agency's considerations in terms of the three categories called for under section (6)(b)(2)(B) of Executive Order 13132. The Food and Nutrition Service has considered the impact of this rule on State and local governments and has determined that this rule does not have Federalism implications. This rule does not impose or direct compliance costs on State and local governments. Therefore, under section 6(b) of the Executive Order, a federalism summary impact statement is not required. Executive Order 12988 This rule has been reviewed under Executive Order 12988, Civil Justice Reform. This rule is intended to have preemptive effect with respect to any State or local laws, regulations or policies which conflict with its provisions or which would otherwise impede its full implementation. This rule is not intended to have retroactive effect unless so specified in the DATES section of this preamble. Prior to any judicial challenge to the provisions of this rule or the application of its provisions, all applicable administrative procedures must be exhausted. Civil Rights Impact Analysis Under Department Regulation 4300-4, Civil Rights Impact Analysis, the Food and Nutrition Service, USDA, has reviewed this interim rule to identify and address any major civil rights impacts the interim rule might have on minorities, women, and persons with disabilities. After a careful review of the rule's intent and provisions, the Food and Nutrition Service, USDA, has determined that this rule would not in any way limit or reduce participants' ability to participate in the Child Nutrition Programs on the basis of an individual's or group's race, color, national origin, sex, age or disability (the Child Nutrition Programs' nondiscrimination policy can be found at § 210.23(b)). The Food and Nutrition Service found no factors that would negatively and disproportionately affect any group of individuals. Paperwork Reduction Act The Paperwork Reduction Act of 1995 (44 U.S.C. Chap. 35; see 5 CFR 1320) requires that the Office of Management and Budget
(OMB)approve all collections of information by a Federal agency before they can be implemented. Respondents are not required to respond to any collection of information unless it displays a current valid OMB control number. This rule does not contain any new information collection requirements subject to approval by OMB under the Paperwork Reduction Act of 1995. Information collections associated with this rule have been approved under following OMB control numbers 0584-0005, 0584-0006, 0584-0012, 0584-0026 and 0584-0067. E-Government Act Compliance The Food and Nutrition Service is committed to complying with the E-Government Act to promote the use of the Internet and other information technologies to provide increased opportunities for citizen access to Government information and services and for other purposes. Public Participation This action is being finalized without prior notice or public comment under authority of 5 U.S.C. 553(b)(3)(A) and (B). This rule is being implemented through amendments to current program regulations because of nondiscretionary provisions mandated by the Child Nutrition and WIC Reauthorization Act of 2004 (Public Law 108-265) and the provisions included in this interim rule are consistent with long-standing policies and procedures in the Child Nutrition Programs. This rule implements new requirements in a manner that builds on existing requirements and policies. Further, section 501(b) of Public Law 108-265 permitted the Secretary to issue an interim rule to implement the provisions in Sections 105 and 106 of Public Law 108-265 which are included herein. These provisions have been substantially implemented through the Department's issuance of guidance, which was also permitted by section 501(a) of Public Law 108-265. Therefore, State agencies and local educational agencies began implementing the requirements and procedures set forth in this rule in School Year 2004-2005 and have been operating under them since that time. The Department has also modified and clarified some of these procedures in response to recommendations from State and local program officials and this interim regulation reflects those modifications and clarifications. In addition, promulgating these provisions in an interim rule allows for prompter codification in the Code of the **Federal Register** of procedures that are already in place. Codification reinforces the provisions significance with State agencies and local educational agencies. Publication of an interim rule provides the Department with the ability to collect comment on the actual implementation experience at all levels. Needed policy changes identified by comments can then be implemented through the publication of a final rule. Thus, the Department has determined in accordance with 5 U.S.C. 553(b), that Notice of Proposed Rulemaking and Opportunity for Public Comments is unnecessary and contrary to the public interest and, in accordance with 5 U.S.C. 553(d), finds that good cause exists for making this action effective without prior public comment. List of Subjects 7 CFR Part 210 Children, Commodity School Program, Food assistance programs, Grants programs—social programs, National School Lunch Program, Nutrition, Reporting and recordkeeping requirements, Surplus agricultural commodities. 7 CFR Part 215 Food assistance programs, Grant programs—education, Grant programs—health, Infants and children, Milk, Reporting and recordkeeping requirements. 7 CFR Part 220 Children, Food assistance programs, Grant programs—social programs, Nutrition, Reporting and recordkeeping requirements, School Breakfast Program. 7 CFR Part 235 Administrative practice and procedure, Child and Adult Care Food Program, Food assistance programs, Grant administration, Intergovernmental relations, National School Lunch Program, Reporting and recordkeeping requirements, School Breakfast Program, Special Milk Program. 7 CFR Part 245 Civil rights, Food assistance programs, Grant programs—education, Grant programs—health, Infants and children, Milk, Reporting and recordkeeping requirements, School breakfast and lunch programs. Accordingly, 7 CFR parts 210, 215, 220, 235 and 245 are amended as follows: PART 210—NATIONAL SCHOOL LUNCH PROGRAM 1. The authority citation for part 210 continues to read as follows: Authority: 42 U.S.C. 1751-1760, 1779. 2. In § 210.2: a. Amend paragraph
(b)in the definition of “Child” by removing the reference “paragraphs (c)” and adding in its place the reference “paragraph (c)”; b. Add a definition of “Local educational agency” in alphabetical order; and c. Revise the definition of “Nonprofit”. The addition and revision read as follows: § 210.2 Definitions. *Local educational agency* means a public board of education or other public or private nonprofit authority legally constituted within a State for either administrative control or direction of, or to perform a service function for, public or private nonprofit elementary schools or secondary schools in a city, county, township, school district, or other political subdivision of a State, or for a combination of school districts or counties that is recognized in a State as an administrative agency for its public or private nonprofit elementary schools or secondary schools. The term also includes any other public or private nonprofit institution or agency having administrative control and direction of a public or private nonprofit elementary school or secondary school, including residential child care institutions, Bureau of Indian Affairs schools, and educational service agencies and consortia of those agencies, as well as the State educational agency in a State or territory in which the State educational agency is the sole educational agency for all public or private nonprofit schools. *Nonprofit* means, when applied to schools or institutions eligible for the Program, exempt from income tax under section 501(c)(3) of the Internal Revenue Code of 1986. § 210.9 [Amended] 4. In § 210.9, amend paragraph (b)(7) by removing the words “school food authority” and adding in their place the words “local educational agency”. § 210.19 [Amended] 5. In 210.19, amend paragraph (c)(6)(ii) by removing the words “the documentation specified under § 245.2(a-4)(1)(ii); or” and adding in their place the words “the information specified in paragraph (1)(ii) of the definition of *Documentation* in § 245.2 of this chapter; or”. PART 215—SPECIAL MILK PROGRAM FOR CHILDREN 1. The authority citation for Part 215 continues to read as follows: Authority: 42 U.S.C. 1772 and 1779. 2. In § 215.2: a. Remove currently reserved paragraph (o); b. Remove the remaining paragraph designations for paragraphs (a), (b), (c), (d), (e), (e-1), (e-2), (e-3), (e-4), (e-5), (f), (g), (h), (i), (i-1), (j), (j-1), (k), (k-1), (l), (m), (n), (p), (q), (r), (r-1), (s), (s-1), (t), (u), (u-1), (v), (w), (w-1), (x), (x-1), (x-2), (x-3), (x-4), (x-5), (x-6), (y), (z), (aa), and
(bb)and arrange the definitions in alphabetical order; c. Amend the definition of “Child-care institution” by removing the words “Child-care” and “child-care” wherever they appear and adding in their place the words “Child care” and “child care”, respectively; d. Amend third sentence of the definition of “Child care institution” by removing the words “paragraph
(v)of”; e. Remove the definition of “Children” and add in its place a definition of “Child”; f. Amend the first sentence of the definition of “Cost of milk” by removing the words “child-care” wherever they appear and by adding in their place the words “child care”; g. Add a definition of “Local educational agency” in alphabetical order; h. Revise the definition of “Nonprofit”; i. Amend the definition of “Reimbursement” by removing the words “child-care” and adding in their place the words “child care”; and j. Amend the definition of “School” by adding the word “or” before the number “(3)” in the first sentence and by removing the words “more; or
(4)with respect to the Commonwealth of Puerto Rico, non-profit child care centers certified as such by the Governor of Puerto Rico.” and adding in their place the word “more.” The revisions and additions read as follows: § 215.2 Definitions. *Child* means
(1)A person under 19 chronological years of age in a Child care institution as defined in this section;
(2)A person under 21 chronological years of age attending a school as defined in paragraphs
(3)and
(4)of the definition of *School* in this section;
(3)A student of high school grade or under attending school as defined in paragraphs
(1)and
(2)of the definition of *School* in this section; or
(4)A student who is mentally or physically disabled as determined by the State and who is participating in a school program established for the mentally or physically disabled, of high school grade or under as determined by the State educational agency in paragraphs
(1)and
(2)of the definition of *School* in this section. *Local educational agency* means a public board of education or other public or private nonprofit authority legally constituted within a State for either administrative control or direction of, or to perform a service function for, public or private nonprofit elementary schools or secondary schools in a city, county, township, school district, or other political subdivision of a State, or for a combination of school districts or counties that is recognized in a State as an administrative agency for its public or private nonprofit elementary schools or secondary schools. The term also includes any other public or private nonprofit institution or agency having administrative control and direction of a public or private nonprofit elementary school or secondary school, including residential child care institutions, Bureau of Indian Affairs schools, and educational service agencies and consortia of those agencies, as well as the State educational agency in a State or territory in which the State educational agency is the sole educational agency for all public or private nonprofit schools. *Nonprofit* means, when applied to schools or institutions eligible for the Program, exempt from income tax under section 501(c)(3) of the Internal Revenue Code of 1986. § 215.3 [Amended] 3. In § 215.3: a. Amend paragraphs
(b)and
(c)by removing the words “child-care” wherever they appear and adding in their place the words “child care”; b. Amend paragraph
(b)by removing the words “as defined in § 215.2(v)(3) or § 215.2(v)(4)” and adding in their place the words “as described in paragraph
(3)of the definition of *School* in § 215.2”; and c. Amend paragraph
(c)by removing the words “in any school as defined in § 215.2(v)(1), § 215.2(v)(2) or § 215.2(v)(3) or any child care institution as defined in § 215.2(e)” and adding in their place the words “in any *School* or any *Child care institution* as defined in § 215.2”. PART 220—SCHOOL BREAKFAST PROGRAM 1. The authority citation for part 220 continues to read as follows: Authority: 42 U.S.C. 1773, 1779, unless otherwise noted. 2. In § 220.2: a. Remove the paragraph designations for paragraphs (a), (a-1), (b), (c), (c-1), (d), (d-1), (e), (f), (g), (g-1), (h), (i), (i-1), (j), (k), (l), (m), (n), (o), (o-1), (o-2), (o-3), (p), (p-1), (q), (q-1), (q-2), (r), (s), (t), (t-1), (u), (v), (v-1), (w), (w-1), (x), (x-1), (x-2), (x-3), (x-4), (x-5), (y), (z), (aa), and
(bb)and arrange the definitions in alphabetical order; b. Amend paragraph
(2)of the definition of “Child” by removing the words “in paragraphs
(3)of the definition of “School” “ and adding in their place the words “in paragraph
(3)of the definition of *School* in this section”; c. Add a definition of “Local educational agency” in alphabetical order; d. Amend the second sentence of the definition of “Menu item” by removing the reference “§ 220.2(i-1)” and adding in its place the words “the definition of *Foods of minimal nutritional value* in this section”; e. Revise the definition of “Nonprofit”; and f. Amend the definition of “State agency” by removing the words “as defined in § 220.2(u)(3) of this part” and adding in their place the words “as described in paragraph
(3)of the definition of *School* in this section”. The revision and addition read as follows: § 220.2 Definitions. *Local educational agency* means a public board of education or other public or private nonprofit authority legally constituted within a State for either administrative control or direction of, or to perform a service function for, public or private nonprofit elementary schools or secondary schools in a city, county, township, school district, or other political subdivision of a State, or for a combination of school districts or counties that is recognized in a State as an administrative agency for its public or private nonprofit elementary schools or secondary schools. The term also includes any other public or private nonprofit institution or agency having administrative control and direction of a public or private nonprofit elementary school or secondary school, including residential child care institutions, Bureau of Indian Affairs schools, and educational service agencies and consortia of those agencies, as well as the State educational agency in a State or territory in which the State educational agency is the sole educational agency for all public or private nonprofit schools. *Nonprofit* means, when applied to schools or institutions eligible for the Program, exempt from income tax under section 501(c)(3) of the Internal Revenue Code of 1986. § 220.3 [Amended] 3. In § 220.3: a. Paragraph
(b)is amended by removing the words “as defined in § 220.2(u)(1), (u)(2) and (u)(4)” and adding in their place the words “as described in paragraphs
(1)and
(2)of the definition of *School* in § 220.2”; b. Paragraph
(b)is further amended by removing the words “as defined in § 220.2(u)(1) of” and adding in their place the words “as described in paragraph
(1)of the definition of *School* in § 220.2 in”; and c. Paragraph
(c)is amended by removing the words “as defined in § 220.2(u)(3)” and adding in their place the words “, as described in paragraph
(3)of the definition of *School* in § 220.2,”. § 220.8 [Amended] 4. In § 220.8, amend paragraph (h)(3)(iv) by removing the words “in §§ 220.2(i-1) and 220.12 and appendix B to this part” and adding in their place the words “in the definition of *Foods of minimal nutritional value* in § 220.2, in § 220.12 and in Appendix B of this part”. § 220.12 [Amended] 5. In § 220.12: a. Amend paragraph (b)(1) by removing the reference “§ 220.2(i-1)” wherever it appears and adding in its place the words “the definition of *Foods of minimal nutritional value* in § 220.2”; and b. Amend (b)(2) by removing the words “as foods of minimal nutritional value as defined in § 220.2(i-1)” wherever they appear and adding in their place the words “ as meeting the definition of *Foods of minimal nutritional value* in § 220.2”. PART 235—STATE ADMINISTRATIVE EXPENSE FUNDS 1. The authority citation for part 235 continues to read as follows: Authority: Secs. 7 and 10 of Child Nutrition Act of 1966, 80 Stat. 888, 889, as amended (42 U.S.C. 1776, 1779). 2. In § 235.2: a. Remove currently reserved paragraphs (e), (j), (k), and (m); b. Remove the paragraph designations for paragraphs (a), (b), (c), (d), (f), (g), (h), (i), (l), (n), (o), (p), (q), (q-1), (q-2), (q-3), (q-4), (q-5), (r), (s), and
(t)and arrange the definitions in alphabetical order; c. Add a definition of “Nonprofit” in alphabetical order; d. Revise the definition of “School”; and e. Amend the last sentence of paragraph
(2)of the definition of “State agency” by removing the words “ ‘distributing agency’, as defined in § 235.2(d),” and adding in their place the words “ *Distributing agency* as defined in this section,”. The addition and revision read as follows: § 235.2 Definitions. *Nonprofit* means exempt from income tax under section 501(c)(3) of the Internal Revenue Code of 1986. *School* means the term as defined in § 210.2, § 215.2, and § 220.2 of this chapter, as applicable. PART 245—DETERMINING ELIGIBILITY FOR FREE AND REDUCED PRICE MEALS AND FREE MILK IN SCHOOLS 1. The authority citation for part 245 continues to read as follows: Authority: 42 U.S.C. 1752, 1758, 1759a, 1772, 1773, and 1779. § 245.1 [Amended] 2. In § 245.1: a. Amend the first sentence of paragraph
(a)by removing the words “(where applicable), and School Food Authorities” and adding in their place the words “, school food authorities or local educational agencies, as defined in § 245.2, as applicable”; and b. Amend paragraph
(b)by removing the words “and School Food Authorities” and adding in their place the words “school food authorities or local educational agencies, as applicable,”. 3. In § 245.2: a. Remove the paragraph designations for paragraphs (a), (a-1), (a-2), (a-3), (a-4), (b), (b-1),(b-2), (b-3), (c), (d), (d-1), (d-2), (e), (f), (f-1), (f-2), (f-3), (g), (h), (i), (j), (k), (l), and
(m)and arrange the definitions in alphabetical order; b. Amend the first sentence of paragraph
(2)of the definition of “Documentation” by removing the words “school food authority” and adding in their place “local educational agency (as defined in this section)”; c. Amend the definition of “Household” by removing the reference “§ 245.2(b)” and adding in their place the words “this section”; d. Add definitions of “Food Stamp Program”, “Household application”, “Local educational agency” and “Nonprofit” in alphabetical order; and e. Amend the second sentence of the definition of “Verification” by removing the words “in the application which is defined as documentation in § 245.(a-4)” and adding in their place the words “on the application and defined as *Documentation* in this section”. The additions read as follows: § 245.2 Definitions. *Food Stamp Program* means the program established under the Food Stamp Act of 1977 (7 U.S.C. 2011 et seq.) and operated under Parts 271 through 283 of this chapter. *Household application* means an application for free and reduced price meal or milk benefits, submitted by a household for a child or children who attend school(s) in the same local educational agency. *Local educational agency* means a public board of education or other public or private nonprofit authority legally constituted within a State for either administrative control or direction of, or to perform a service function for, public or private nonprofit elementary schools or secondary schools in a city, county, township, school district, or other political subdivision of a State, or for a combination of school districts or counties that is recognized in a State as an administrative agency for its public or private nonprofit elementary schools or secondary schools. The term also includes any other public or private nonprofit institution or agency having administrative control and direction of a public or private nonprofit elementary school or secondary school, including residential child care institutions, Bureau of Indian Affairs schools, and educational service agencies and consortia of those agencies, as well as the State educational agency in a State or territory in which the State educational agency is the sole educational agency for all public or private nonprofit schools. *Nonprofit* means exempt from income tax under section 501(c)(3) of the Internal Revenue Code of 1986. § 245.3 [Amended] 4. In § 245.3: a. Amend the first sentence of paragraph
(a)by removing the words “School Food Authorities of schools” and adding in their place the words “local educational agencies, as defined in § 245.2,”; b. Amend the first sentence of paragraph
(b)introductory text by removing the words “School Food Authority” and adding in their place the words “local educational agency”; c. Amend paragraph (b)(1) by removing the words “School Food Authority” the first time they appear and adding in their place the words “local educational agency”; d. Amend the first sentence of paragraph (b)(2) by removing the words “School Food Authority” and adding in their place the words “local educational agency” and amend the second sentence of paragraph (b)(2) removing the words “School Food Authority's” and adding in their place the words “local educational agency's” and e. Amend the second sentence of paragraph
(c)by removing the words “as defined in § 245.2(b)” and adding in their place the words “(as defined in § 245.2)”. 5. In § 245.5: a. Amend the first sentence of paragraph
(a)introductory text by removing the words “school food authority” wherever they appear and adding in their place the words “local educational agency (as defined in § 245.2)”; b. Amend paragraph (a)(1)(iii) by removing the words “ “documentation” as defined in “§ 245.2(a-4);” and adding in its place the words “information as described in paragraph (1)(i) of the definition of *Documentation* in § 245.2”; c. Amend paragraph (a)(1)(iv) by removing the reference “§ 245.2(a-4)” and adding in its place the words “paragraph (2)(ii) of the definition of *Documentation* in § 245.2”; d. Remove paragraph (a)(1)(vi); e. Redesignate paragraphs (a)(1)(vii) through (a)(1)(xi) as (a)(1)(vi) through (a)(1)(x), respectively; f. Amend newly redesignated paragraph (a)(1)(viii) by removing the words “School Food Authority” and adding in their place the words “local educational agency”; g. Amend newly redesignated paragraph (a)(1)(x) by removing the words “School Food Authority” and adding in their place the words “local educational agency”; and h. Add a new paragraph (a)(1)(xi). The addition reads as follows: § 245.5 Public announcement of the eligibility criteria.
(a)* * *
(1)* * *
(xi)A statement to the effect that the Special Supplemental Nutrition Program for Women, Infants and Children
(WIC)participants may be eligible for free or reduced price meals. 8. In § 245.6: a. Revise the heading; b. Revise paragraph (a); c. Amend paragraph
(b)introductory text: 1. By removing the words “school food authorities” in the first sentence and adding in their place the words “local educational agencies”; and 2. By removing the reference “§ 245.2(a-4)(2)” in the second sentence and adding in its place the words “paragraph
(2)of the definition of *Documentation* in § 245.2”; d. Revise paragraph (c); e. Amend paragraphs
(d)and
(e)by adding headings; f. Amend paragraph
(d)by: 1. Removing the words “School Food Authority” wherever they appear and adding in their place the words “local educational agency”; and 2. Removing the words “School Food Authority's” wherever they appear and adding in their place the words “local educational agency's”; g. Amend paragraphs
(e)through
(h)by removing the words “school food authority” wherever they appear and adding in their place the words “local educational agency”; h. Amend paragraph (f)(4) by removing the words “school food authorities” and adding in their place the words “local educational agencies”; and i. Amend the second sentence of paragraph (h)(1) and the sixth sentence of paragraph (h)(2) by removing references to “paragraph (a)(1)” and adding in their place references to “paragraph (a)(8)(i)”; j. Amend paragraph
(i)by removing the words “school food authorities” and adding in their place the words “local educational agencies”. The revisions and additions read as follows: § 245.6 Application, eligibility and certification of children for free and reduced price meals and free milk.
(a)*General requirements—content of application and descriptive materials.* Each local educational agency, as defined in § 245.2, for schools participating in the National School Lunch Program, School Breakfast Program or Special Milk Program or a commodity only school shall provide meal benefit forms for use by families in making application for free or reduced price meals or free milk for their children.
(1)*Household applications.* The State agency or local educational agency must provide a form that permits a household to apply for all children in that household who attend schools in the same local educational agency. The local educational agency cannot require the household to submit an application for each child attending its schools. The application shall be clear and simple in design and the information requested therein shall be limited to that required to demonstrate that the household does, or does not, meet the eligibility criteria for free or reduced price meals, respectively, or for free milk, issued by the local educational agency. In accordance with § 245.3(c), a foster child or an institutionalized child is considered a family of one.
(2)*Understandable communications.* Any communication with households for eligibility determination purposes must be in an understandable and uniform format and to the maximum extent practicable, in a language that parents and guardians can understand.
(3)*Electronic availability.* In addition to the distribution of applications and descriptive materials in paper form as provided for in this section, the local educational agency may establish a system for executing household applications electronically and using electronic signatures. The electronic submission system must comply with the disclosure requirements in this section and with technical assistance and guidance provided by FNS. Descriptive materials may also be made available electronically by the local educational agency.
(4)*Transferring eligibility status.* When a student transfers to another school district, the new local educational agency may accept the eligibility determination from the student's former local educational agency without incurring liability for the accuracy of the initial determination. As required under paragraph (c)(3) of this section, the accepting local educational agency must make changes that occur as a result of verification activities or coordinated review findings conducted in that local educational agency.
(5)*Required income information.* The information requested on the application with respect to the current income of the household must be limited to:
(i)The income received by each member identified by the household member who received the income or an indication that which household members had no income; and
(ii)The source of the income (such as earnings, wages, welfare, pensions, support payments, unemployment compensation, social security and other cash income). Other cash income includes cash amounts received or withdrawn from any source, including savings, investments, trust accounts, and other resources which are available to pay for a child's meals or milk.
(6)*Household members and social security numbers.* The application must require applicants to provide the names of all household members. In addition, the social security number of the adult household member who signs the application must be provided. If the adult member signing the application does not possess a social security number, the household must so indicate. However, if application is being made for a child(ren) who is a member of a household receiving assistance under the Food Stamp Program, or is in a FDPIR or TANF household, the application shall enable the household to provide the appropriate food stamp or TANF case number or FDPIR case number or other FDPIR identifier in lieu of names of all household members, household income information and social security number.
(7)*Adult member's signature.* The application must be signed by an adult member of the family. The application must contain clear instructions with respect to the submission of the completed application to the official or officials designated by the local educational agency to make eligibility determinations. A household must be permitted to file an application at any time during the school year. A household may, but is not required to, report any changes in income, household size or program participation during the school year.
(8)*Required statements for the application.* The application and/or descriptive materials must contain substantially the following statements:
(i)“The Richard B. Russell National School Lunch Act requires the information on this application. You do not have to give the information, but if you do not, we cannot approve your child for free or reduced price meals. You must include the social security number of the adult household member who signs the application. The social security number is not required when you apply on behalf of a foster child or you list a Food Stamp, Temporary Assistance for Needy Families
(TANF)Program or Food Distribution Program on Indian Reservations (FDPIR) case number for your child or other FDPIR identifier or when you indicate that the adult household member signing the application does not have a social security number. We will use your information to determine if your child is eligible for free or reduced price meals, and for administration and enforcement of the lunch and breakfast programs.” When the State agency or local educational agency, as appropriate, plans to use or disclose children's eligibility information for non-program purposes, additional information, as specified in paragraph
(h)of this section, must be added to the Privacy Act notice/statement. State agencies and local educational agencies are responsible for drafting the appropriate notice and ensuring that the notice complies with section 7(b) of the Privacy Act of 1974 (5 U.S.C. 552a note (Disclosure of Social Security Number)); and
(ii)“In certain cases, foster children are eligible for free or reduced price meals or free milk regardless of your household income. If you have foster children living with you and wish to apply for such meals or milk for them, please contact us.”
(9)*Attesting to information on the application.* The application must also include a statement, immediately above the space for signature, that the person signing the application certifies that all information furnished in the application is true and correct, that the application is being made in connection with the receipt of Federal funds, that school officials may verify the information on the application, and that deliberate misrepresentation of the information may subject the applicant to prosecution under applicable State and Federal criminal statutes.
(c)*Determination of eligibility* —(1) *Duration of eligibility.* Except as otherwise specified in paragraph (c)(3) of this section, eligibility, as determined through an approved application or by direct certification, for free or reduced price meals must remain in effect for the entire school year and for up to 30 operating days into the subsequent school year. The local educational agency must determine household eligibility, for free or reduced price meals, either through direct certification or the application process at or about the beginning of the school year. The local educational agency must determine eligibility for free or reduced price meals when a household submits an application or, if feasible, through direct certification, at any time during the school year.
(2)*Use of prior year's eligibility status.* Prior to the processing of applications or the completion of direct certification procedures for the current school year, children from households with approved applications or documentation of direct certification on file from the preceding year shall be offered reimbursable free and reduced price meals or free milk, as appropriate. However, applications and documentation of direct certification from the preceding year shall be used only to determine eligibility for a period not to exceed the first 30 operating days following the first operating day at the beginning of the school year, or until a new eligibility determination is made in the current school year, whichever comes first.
(3)*Exceptions for year-long duration of eligibility* —(i) *Voluntary reporting of changes.* If the household voluntarily reports a change in income or in program participation resulting in categorical eligibility, the local educational agency must inform the household of the consequences of any change that will result in lowered benefits. The household has the option to decline to have the change put into effect.
(ii)*Changes resulting from verification or administrative reviews.* The local educational agency must change the children's eligibility status when a change is required as a result of verification activities conducted under § 245.6a or as a result of a review conducted in accordance with § 210.18 of this chapter.
(iii)*Temporary approvals.* When a household reports no income or a temporary reduction in income, local educational agencies are encouraged to approve free or reduced price meal benefits on a temporary basis only. Approvals for a maximum of 45 days are recommended. At the end of the temporary approval period, the local educational agency would review the household's circumstances and certify or deny the household accordingly.
(4)*Calculating income.* The local educational agency must use the income information provided by the household on the application to calculate the household's total current income. When a household submits an application containing complete documentation, as defined in § 245.2, and the household's total current income is at or below the eligibility limits specified in the Income Eligibility Guidelines as defined in § 245.2, the children in that household must be approved for free or reduced price benefits, as applicable.
(5)*Categorical eligibility.* When a household submits an application containing the required food stamp, FDPIR or TANF documentation, as defined under *Documentation* in § 245.2, the children in that household must be approved for free benefits. Additionally, when the local educational agency obtains documentation, as defined in § 245.2, from the State or local agency responsible for the administration of the Food Stamp Program, FDPIR and/or TANF Program that children are members of a Food Stamp Program, FDPIR or TANF household receiving assistance from one or more of those programs, the local educational agency must approve such children for free benefits without an application.
(6)*Notice of approval* —(i) *Income applications.* The local educational agency must promptly notify the household of the children's eligibility and provide the eligible children the benefits to which they are entitled.
(ii)*Direct Certification.* Households approved for benefits based on information provided by the appropriate State or local agency responsible for the administration of the Food Stamp Program, FDPIR or TANF Program must be notified, in writing, that their children are eligible for free meals or free milk, that no application for free and reduced price school meals or free milk is required. The notice of eligibility must also inform the household that the parent or guardian must notify the local educational agency if they do not want their children to receive free benefits. However, when the parent or guardian transmits a notice of eligibility provided by the food stamp, FDPIR or TANF office, the local educational agency is not required to provide a separate notice of eligibility.
(iii)*Households declining benefits.* Children from households that notify the local educational agency that they do not want free benefits must have their benefits discontinued as soon as possible. Any notification from the household declining benefits must be documented and maintained on file, as required under paragraph
(e)of this section, to substantiate the eligibility determination.
(7)*Denied applications and the notice of denial.* When the application furnished by a family is not complete or does not meet the eligibility criteria for free or reduced price benefits, the local educational agency must document and retain the reasons for ineligibility and must retain the denied application. In addition, the local educational agency must promptly provide written notice to each family denied benefits. As a minimum, this notice shall include:
(i)The reason for the denial of benefits, e.g. income in excess of allowable limits or incomplete application;
(ii)Notification of the right to appeal;
(iii)Instructions on how to appeal; and
(iv)A statement reminding parents that they may reapply for free or reduced price benefits at any time during the school year.
(8)*Appeals of denied benefits.* A family that wishes to appeal an application that was denied may do so in accordance with the procedures established by the local educational agency as required by § 245.7. However, prior to initiating the hearing procedure, the family may request a conference to provide the opportunity for the family and local educational agency officials to discuss the situation, present information, and obtain an explanation of the data submitted in the application or the decision rendered. The request for a conference shall not in any way prejudice or diminish the right to a fair hearing. The local educational authority shall promptly schedule a fair hearing, if requested.
(d)*Households that fail to apply.* * * *
(e)*Recordkeeping.* * * * 9. In § 245.6a: a. Amend paragraph
(a)introductory text by: 1. Removing the words “School Food Authorities” wherever they appear and adding in their place the words “local educational agencies”; and 2. Removing the words “School Food Authority” in the fifth sentence and adding in their place the words “local educational agency”; b. Amend paragraph (a)(1) by: 1. Removing the words “School Food Authority” wherever they appear and adding in their place the words “local educational agency”; and 2. By removing the words “the essential information specified in § 245.2(a-4)” in the second sentence and adding in their place the words “the information specified in the definition of *Documentation* in § 245.2”; c. Amend paragraph (a)(2) introductory text by: 1. Removing the words “school food authority” in the first sentence and adding in their place the words “local educational agency”; 2. Adding a new sentence between the first and second sentences; and 3. Removing the words “School food authorities” in the last sentence and adding in their place the words “Local educational agencies”; d. Amend the second sentence of paragraph (a)(2)(v) by removing the words “school food authorities” and adding in their place the words “local educational agencies”; e. Amend the second sentence of paragraph (a)(4) by removing the words “School Food Authority's” and adding in their place the words “local educational agency's”; f. Amend paragraph (b)(3) by: 1. Removing the words “School Food Authority” in the first sentence and adding in their place the words “local educational agency”; and 2. Removing the words “school food authority” in the second sentence and adding in their place the words “local educational agency”; g. Amend paragraph
(c)by: 1. Removing the words “school food authority” wherever they appear and adding in their place the words “local educational agency”; and 2. Removing the words “school food authorities” wherever they appear and adding in their place the words “local educational agencies”; and h. Amend paragraph
(e)by removing the words “School Food Authority” wherever they appear and adding in their place the words “local educational agency”. The addition reads as follows: § 245.6a Verification requirements.
(a)* * *
(2)* * * Any communication with households concerning verification must be in an understandable and uniform format and, to the maximum extent practicable, in a language that parents and guardians can understand. * * * 10. In § 245.7: a. Revise the heading; and b. Amend paragraph
(a)by removing the words “School Food Authority” wherever they appear and adding in their place the words “local educational agency”; The revision reads as follows: § 245.7 Hearing procedure for families and local educational agencies. § 245.8 [Amended] 11. In § 245.8: a. Amend the first sentence of the introductory text by adding the words “and local educational agencies” after the words “School Food Authorities”; and b. Amend paragraph
(e)by removing the references “§ 210.10, § 210.15a, § 220.8 or § 215.2(1)” and adding in their place the words “§ 210.10, § 220.8 or the definition of *Milk* in § 215.2”. 12. Amend § 245.10 by: a. Revising the heading; b. Removing the words “School Food Authority” wherever they appear and adding in their place the words “local educational agency”; c. Removing the words “school food authority” wherever they appear and adding in their place the words “local educational agency”; d. Removing the words “School Food Authority's” wherever they appear and adding in their place the words “local educational agency's”; and e. Removing the words “school food authorities” in the third sentence of paragraph (a)(3) and adding in their place the words “local educational agencies”. The revision reads as follows: § 245.10 Action by local educational agencies. § 245.11 [Amended] 13. In 245.11: a. Amend the first sentence of paragraph (a)(1) by removing the words “school food authority” and adding in their place the words “local educational agency as defined in § 245.2”; b. Amend paragraph
(c)by removing the words “School Food Authorities” and adding in their place the words “local educational agencies”; c. Amend paragraph
(d)by removing the words “School Food Authorities” and adding in their place the words “local educational agencies”; d. Amend paragraph
(e)removing the words “school food authority” and adding in their place the words “local educational agency”; e. Amend paragraph
(f)by removing the words “School Food Authorities” wherever they appear and adding in their place the words “local educational agencies”; f. Amend paragraph
(i)by removing the words “school food authority” wherever they appear and adding in their place the words “local educational agency”; and g. Amend the third sentence of paragraph
(i)by removing the words “school food authorities” and adding in their place the words “local educational agencies”. Dated: November 2, 2007. Roberto Salazar, Administrator, Food and Nutrition Service. [FR Doc. E7-22053 Filed 11-9-07; 8:45 am] BILLING CODE 3410-30-P DEPARTMENT OF AGRICULTURE Animal and Plant Health Inspection Service 9 CFR Part 94 [Docket No. 00-111-3] Foot-and-Mouth Disease Status of Uruguay AGENCY: Animal and Plant Health Inspection Service, USDA. ACTION: Final rule. SUMMARY: We are adopting as a final rule, with one change, our July 2001 interim rule that amended the regulations governing the importation of certain animals, meat, and other animal products by removing Uruguay from the list of areas considered free of rinderpest and foot-and-mouth disease. The interim rule also removed Uruguay from the list of regions declared free of those diseases, but that are subject to certain restrictions because of their proximity to or trading relations with regions affected with rinderpest or foot-and-mouth disease. The interim rule was necessary because the existence of foot-and-mouth disease had been confirmed in 18 Departments in Uruguay. Because there have been no occurrences of rinderpest in Uruguay, this final rule adds Uruguay to the list of regions considered free of that disease. EFFECTIVE DATE: December 13, 2007. FOR FURTHER INFORMATION CONTACT: Dr. Gary Colgrove, Director, Sanitary Trade Issues Team, National Center for Import and Export, VS, APHIS, 4700 River Road, Unit 38, Riverdale, MD 20737-1231;
(301)734-3276. SUPPLEMENTARY INFORMATION: Background The regulations in 9 CFR part 94 (referred to below as the regulations) govern the importation of specified animals and animal products into the United States in order to prevent the introduction of various animal diseases including rinderpest, foot-and-mouth disease (FMD), African swine fever, classical swine fever, swine vesicular disease, and bovine spongiform encephalopathy. These are dangerous and destructive communicable diseases of ruminants and swine. Section 94.1 of the regulations lists regions of the world that are declared free of rinderpest or free of both rinderpest and FMD. Under § 94.11 of the regulations, some of those regions are subject to additional restrictions because of their proximity to or trading relationships with rinderpest and FMD-affected regions. In an interim rule effective October 1, 2000, and published in the **Federal Register** on December 13, 2000 (65 FR 77771-77773, Docket No. 00-111-1), we amended the regulations by removing Artigas, a region in northern Uruguay, from the list of regions considered to be free of rinderpest and FMD because FMD had been confirmed there. Prior to the effective date of that interim rule, the entire country of Uruguay was listed in §§ 94.1 and 94.11 as a region considered free of rinderpest and FMD. We solicited comments concerning the interim rule for 60 days ending February 12, 2001, and received two comments by that date. However, on April 23, 2001, FMD was confirmed in the Uruguayan department of Soriano. Subsequently, new outbreaks of the disease were confirmed in the departments of Artigas, Canelones, Colonia, Duranzo, Flores, Florida, Lavalleja, Maldonado, Paysandu, Rio Negro, Rivera, Rocha, Salto, San Jose, Tacuarembo, and Treinta y Tres. In response to the spread of FMD within Uruguay, we issued an interim rule effective April 2, 2001, and published in the **Federal Register** on July 13, 2001 (66 FR 36695-36697, Docket No. 00-111-2), that amended the regulations by removing Uruguay from the list of regions considered free of rinderpest and FMD and from the list of regions that, although rinderpest and FMD-free, are subject to certain restrictions on the importation of meat and other animal products. Comments on the interim rule of July 13, 2001, were required to be received on or before September 11, 2001. We did not receive any comments. Although we removed Uruguay from the list of regions considered to be free of rinderpest and FMD, we recognized in that interim rule that Uruguay's Ministry of Livestock, Agriculture, and Fisheries had responded immediately to the detection of the disease by imposing restrictions on the movements of ruminants and swine from the affected areas and by initiating several measures to eradicate the disease. For this reason, we stated that we intended to reassess the situation in accordance with the standards of the World Organization for Animal Health
(OIE)at a future date. Since that time, we have undertaken a reassessment of Uruguay's disease status. While we acknowledge the many efforts Uruguay has made to control and eradicate FMD within its departments since the interim rule was published, we have received no data suggesting that our disease classification of the country is in error, or supporting the return of Uruguay to FMD-free status. However, we note that while it was necessary to remove Uruguay from the list in § 94.1(a)(2) of regions that are declared to be free of both FMD and rinderpest, the disease situation that led to that action involved only FMD. Therefore, it is possible to include Uruguay on the list of regions declared to be free of rinderpest. Accordingly, this final rule amends § 94.1(a)(3) by adding Uruguay to the list of regions declared to be free of rinderpest. Therefore, for the reasons given in the interim rule and in this document, we are adopting the interim rule as a final rule, with the change discussed in this document. This final rule also affirms the information contained in the interim rule concerning Executive Order 12866 and the Regulatory Flexibility Act, Executive Order 12988, and the Paperwork Reduction Act. Further, for this action, the Office of Management and Budget has waived its review under Executive Order 12866. List of Subjects in 9 CFR Part 94 Animal diseases, Imports, Livestock, Meat and meat products, Milk, Poultry and poultry products, Reporting and recordkeeping requirements. Accordingly, the interim rule amending 9 CFR part 94 that was published at 66 FR 36695-36697 on July 13, 2001, is adopted as a final rule with the following change: PART 94—RINDERPEST, FOOT-AND-MOUTH DISEASE, FOWL PEST (FOWL PLAGUE), EXOTIC NEWCASTLE DISEASE, AFRICAN SWINE FEVER, CLASSICAL SWINE FEVER, AND BOVINE SPONGIFORM ENCEPHALOPATHY: PROHIBITED AND RESTRICTED IMPORTATIONS 1. The authority citation for part 94 continues to read as follows: Authority: 7 U.S.C. 450, 7701-7772, 7781-7786, and 8301-8317; 21 U.S.C. 136 and 136a; 31 U.S.C. 9701; 7 CFR 2.22, 2.80, 371.4. 2. In § 94.1, paragraph (a)(3) is revised to read as follows: § 94.1 Regions where rinderpest or foot-and-mouth disease exists; importations prohibited.
(a)* * *
(3)The following regions are declared to be free of rinderpest: Namibia, the Republic of South Africa, and Uruguay. Done in Washington, DC, this 7th day of November 2007. Kevin Shea, Acting Administrator, Animal and Plant Health Inspection Service. [FR Doc. E7-22091 Filed 11-9-07; 8:45 am] BILLING CODE 3410-34-P DEPARTMENT OF TRANSPORTATION Federal Aviation Administration 14 CFR Part 21 [Docket No. FAA-2006-25877; Amendment No. 21-91] RIN 2120-AI78 Production and Airworthiness Approvals, Part Marking, and Miscellaneous Proposals AGENCY: Federal Aviation Administration (FAA), DOT. ACTION: Final rule. SUMMARY: The FAA is amending its requirements to allow the issuance of export airworthiness approvals for Class II and III products located at facilities outside the United States. The FAA proposed this change in a Notice of Proposed Rulemaking
(NPRM)issued on October 5, 2006. That NPRM proposed comprehensive changes to 14 CFR part 21 to standardize production and airworthiness requirements for production approval holders. This final rule expedites the promulgation of a simple and uncontroversial portion of that rulemaking. The FAA intends to issue a separate final rule on other proposals in that NPRM. DATES: This amendment becomes effective January 14, 2008. FOR FURTHER INFORMATION CONTACT: For technical questions concerning this final rule, contact John Linsenmeyer, Production Certification Branch, AIR-220, Federal Aviation Administration, 800 Independence Avenue, SW., Washington, DC 20591; telephone
(202)493-5571; facsimile
(202)267-5580, e-mail *john.linsenmeyer@faa.gov.* SUPPLEMENTARY INFORMATION: Authority for This Rulemaking Under the laws of the United States, the Department of Transportation has the responsibility to develop transportation policies and programs that contribute to providing fast, safe, efficient, and convenient transportation (49 U.S.C. 101). The Federal Aviation Administration (FAA or “we”) is an agency of the Department. The FAA has general authority to issue rules regarding aviation safety, including minimum standards for appliances and for the design, material, construction, quality of work, and performance of aircraft, aircraft engines, and propellers (49 U.S.C. 106(g) and 44701). We may also prescribe regulations in the interest of safety for registering and identifying an aircraft engine, propeller, or appliance (49 U.S.C. 44104). The FAA may issue, among other things, type certificates, production certificates and airworthiness certificates (49 U.S.C. 44702). We issue a production certificate authorizing the production of a duplicate of an aircraft, aircraft engine, propeller, or appliance for which a type certificate has been issued when we find the duplicate will conform to the certificate. We may include in a production certificate terms required in the interest of safety. We issue an airworthiness certificate for an aircraft when we find the aircraft conforms to its type design and is in condition for safe operation. We may include in an airworthiness certificate terms required in the interest of safety (49 U.S.C. 44704). This document adopts a change to our regulations governing the certification procedures for products and parts. This change will make it easier for manufacturers to produce and obtain aircraft parts in the global marketplace, which should aid the efficiency and competitiveness of the industry. For these reasons, this final rule is a reasonable and necessary exercise of the FAA's rulemaking authority and obligations. Background On October 5, 2006, the FAA issued an NPRM to amend its certification procedures and identification requirements for aeronautical products and parts (71 FR 58914). Included in that NPRM was a proposed change to § 21.325(b)(3) to allow an export airworthiness approval to be issued for a *product or article* located outside of the U.S. if the FAA finds no undue burden in administering its regulations (Emphasis added). One aspect of the proposed change was to substitute the words “product or article” for “Class II and III products.” This change was part of a comprehensive effort to standardize terminology throughout part 21. Because the NPRM has not yet been adopted, this final rule allows for the issuance of export airworthiness approvals outside the U.S., but it retains the reference to “Class II and III products.” Summary of Comments The FAA received one comment on our proposed changes to the regulations affecting export airworthiness approvals. The Aviation Suppliers Association noted that the proposal still imposes an obligation to apply to the FAA for the “no undue burden” analysis. In the commenter's view, such an analysis is not necessary. Designated Airworthiness Representatives
(DARs)must already receive permission to operate outside his or her geographic region. If the DAR has the authority to operate and make findings outside the U.S., then the DAR should also be permitted to issue an export airworthiness approval. An “undue burden analysis” would be duplicative and a waste of Government resources. The commenter recommends removal of the “undue burden analysis.” The FAA disagrees with the commenter. Pursuant to Title 49 of the United States Code, the Administrator of the FAA may delegate to a qualified private person a matter related to the examination, testing, and inspection necessary to issue a certificate. However, these assignees work on behalf of the Administrator. Ultimately, the FAA has a statutory responsibility to inspect products and determine their airworthiness status. We use the undue burden determination to ensure, with FAA's limited resources, we can meet the requirements of Title 49; our obligations under that statute cannot by circumvented by application of a rule. Discussion of the Final Rule Part 21, Subpart L contains regulations for exporting aviation products. This rulemaking amends the regulations governing how export airworthiness approvals for Class II and III products are issued. Export airworthiness approvals are used to identify the airworthiness status of a particular product. Specifically, export airworthiness approvals attest that a particular product conforms to the approved design and is in a condition for safe operation. These approvals provide a certain level of assurance that a product or part that has been placed in the aviation stream of commerce poses a negligible risk to the flying public. They serve both civil aviation authorities approving the products for import and the end-user who places them into service. Although export approvals are required only when requested by the importing civil airworthiness authority, these documents have become increasingly valued in the aviation industry. Products and parts with an airworthiness approval have increased sales potential over those same parts that do not have an approval. This rulemaking amends Subpart L to allow the issuance of export airworthiness approvals for Class II and III products, regardless of their location. Previously, the rule only permitted approvals to be issued for these products manufactured and located in the United States. When § 21.325(b)(3) was adopted (30 FR 8465, Jul. 2, 1965), the international market for aviation products was minimal compared with today's international market. Additionally, FAA resources were limited for issuing export airworthiness approvals outside the United States. However, FAA designees are now available to issue export airworthiness approvals for production approval holders
(PAHs)and other exporters. This rulemaking relieves the past restriction on issuing approvals, as well as the public's burden of petitioning for exemptions, by allowing export airworthiness approvals to be issued for any Class II or Class III product located in another country, if the FAA finds no undue burden in administering its requirements. Consequently, a PAH may direct ship its products from a supplier facility without first shipping the product to the United States to obtain an export airworthiness approval. Certificate management and designee oversight responsibilities are examples of potential burdens on the FAA. For the PAHs, the assessment of undue burden related to issuing an export airworthiness approval would be performed during the FAA's undue burden assessment of a prospective production facility located outside the United States. Part of this assessment is a determination by the FAA that the PAH has established and implemented supplier control procedures that are acceptable to the FAA. The FAA has granted many petitions for exemption to § 21.325(b)(3), and this rulemaking will resolve the direct-ship issue that prompted organizations to request them. Expediting this rulemaking results in a more efficient disposition of those petitions for exemption. For the reasons stated above, this final rule adds new paragraph § 21.325(b)(4) which allows export airworthiness approvals to be issued for Class II and III products located outside of the United States if the FAA finds no undue burden in administering the applicable requirements of Title 49 U.S.C. and subchapter C of Title 14 of the Code of Federal Regulations. Paperwork Reduction Act Information collection requirements associated with this final rule have been approved previously by the Office of Management and Budget
(OMB)under the provisions of the Paperwork Reduction Act of 1995 (44 U.S.C. 3507(d)), and have been assigned OMB Control Number 2120-0721. An agency may not collect or sponsor the collection of information, nor may it impose an information collection requirement unless it displays a currently valid Office of Management and Budget
(OMB)control number. International Compatibility In keeping with U.S. obligations under the Convention on International Civil Aviation, it is FAA policy to comply with International Civil Aviation Organization
(ICAO)Standards and Recommended Practices to the maximum extent practicable. The FAA has determined that there are no ICAO Standards and Recommended Practices that correspond to this final rule. Regulatory Evaluation, Regulatory Flexibility Determination, International Trade Impact Assessment, and Unfunded Mandates Assessment Changes to Federal regulations must undergo several economic analyses. First, Executive Order 12866 directs that each Federal agency shall propose or adopt a regulation only upon a reasoned determination that the benefits of the intended regulation justify its costs. Second, the Regulatory Flexibility Act of 1980 (Public Law 96-354) requires agencies to analyze the economic impact of regulatory changes on small entities. Third, the Trade Agreements Act (Public Law 96-39) prohibits agencies from setting standards that create unnecessary obstacles to the foreign commerce of the United States. In developing U.S. standards, this Trade Act requires agencies to consider international standards and, where appropriate, that they be the basis of U.S. standards. Fourth, the Unfunded Mandates Reform Act of 1995 (Pub. L. 104-4) requires agencies to prepare a written assessment of the costs, benefits, and other effects of proposed or final rules that include a Federal mandate likely to result in the expenditure by State, local, or tribal governments, in the aggregate, or by the private sector, of $100 million or more annually (adjusted for inflation with base year of 1995). In conducting these analyses, FAA has determined that this final rule:
(1)Has benefits that justify its costs,
(2)is not an economically “significant regulatory action” as defined in section 3(f) of Executive Order 12866,
(3)is not “significant” as defined in DOT's Regulatory Policies and Procedures;
(4)will not have a significant economic impact on a substantial number of small entities;
(5)will not create unnecessary obstacles to the foreign commerce of the United States; and
(6)will not impose an unfunded mandate on state, local, or tribal governments, or on the private sector by exceeding the threshold identified above. These analyses are summarized below. Regulatory Evaluation Summary This portion of the preamble summarizes the FAA's analysis of the economic impact of this rule. It also includes summaries of the final regulatory flexibility analysis, international trade impact assessment, and the unfunded mandate assessment. For more information, we suggest readers go to the full regulatory evaluation, a copy of which we have placed in the docket for this rulemaking. Total Costs and Benefits of This Rulemaking This Regulatory Evaluation examines the impact of an FAA rule allowing for the issuance of export airworthiness approvals for Class II (major components) and Class III (parts and components) products located at facilities outside the United States. Export airworthiness approvals are required by the FAA only if required by the importing country. Consequently, there is no issue of “market failure”, at least from the perspective of the United States. As this rule relieves regulatory burden, there are cost-relieving benefits and no costs. The FAA estimates the annual cost savings from this rule to be $11,867,500. As the rule is a procedural change with no front-loaded costs, we use a 10-year period of analysis. Discounting this stream of annual cost savings (at 7%) for ten years yields a present value of approximately $83 million. Who Is Potentially Affected by This Rulemaking This rule potentially affects directly all production approval holders, including holders of Production Certificates, Technical Standard Order Authorizations, and Parts Manufacturer Approvals. The rule also potentially affects distributors, importers and exporters of airplane parts, air operators and carriers, and the flying public. Assumptions This evaluation makes the following assumptions: • This rule would become effective on January 1, 2008. • The discount rate is 7 percent (Office of Management and Budget, Circular A-94, “Guidelines and Discount Rates for Benefit-Cost Analysis of Federal Programs”, October 29, 1992, p. 8). • The period of analysis is the 10-year period, 2008-2017. • For purposes of discounting, cost savings are conventionally assumed to occur at the end of the year. (If assumed to occur at the beginning of the year, the discounted present value of the cost savings increases by 7%.) Changes From the NPRM to the Final Rule • The effective date of the rule changes from 18 months after publication in the **Federal Register** to effective on January 1, 2008. • The period of analysis changes from 2009-2018 to 2008-2017. • The base year changes from 2005 to 2008. Benefits of This Rulemaking The FAA estimates the present discounted value of the benefits of this rule to be approximately $83 million. Costs of This Rulemaking As this rule relieves regulatory burden, there are no costs of this rule. Alternatives Considered The Status Quo—The status quo represents a situation in which the FAA would continue to issue exemptions from § 21.325(b)(3) indefinitely. As that would perpetuate “rulemaking by exemption,” we choose not to continue with the status quo. Final Regulatory Flexibility Determination The Regulatory Flexibility Act of 1980 (Pub. L. 96-354)
(RFA)establishes “as a principle of regulatory issuance that agencies shall endeavor, consistent with the objectives of the rule and of applicable statutes, to fit regulatory and informational requirements to the scale of the businesses, organizations, and governmental jurisdictions subject to regulation. To achieve this principle, agencies are required to solicit and consider flexible regulatory proposals and to explain the rationale for their actions to assure that such proposals are given serious consideration.” The RFA covers a wide-range of small entities, including small businesses, not-for-profit organizations, and small governmental jurisdictions. Agencies must perform a review to determine whether a rule will have a significant economic impact on a substantial number of small entities. If the agency determines that it will, the agency must prepare a regulatory flexibility analysis as described in the RFA. However, if an agency determines that a rule is not expected to have a significant economic impact on a substantial number of small entities, section 605(b) of the RFA provides that the head of the agency may so certify and a regulatory flexibility analysis is not required. The certification must include a statement providing the factual basis for this determination, and the reasoning should be clear. The Initial Regulatory Flexibility Analysis of the rules proposed in the NPRM found a significant economic impact on a substantial number of small entities. This result was reported in the NPRM and the full IRFA was placed in the docket (FAA-2006-25877), along with the Initial Regulatory Analysis, and was also published in the **Federal Register** (72 FR 6968, February 14, 2007). This final rule, however, is cost relieving and, therefore, imposes no economic cost on small entities. Moreover, we did not receive any comments regarding the small entity impact of this part of the NPRM. Therefore as the Acting FAA Administrator, I certify that this rule will not have a significant economic impact on a substantial number of small entities. International Trade Impact Assessment The Trade Agreements Act of 1979 (Pub. L. 96-39) prohibits Federal agencies from establishing any standards or engaging in related activities that create unnecessary obstacles to the foreign commerce of the United States. Legitimate domestic objectives, such as safety, are not considered unnecessary obstacles. The statute also requires consideration of international standards and, where appropriate, that they be the basis for U.S. standards. The FAA has assessed the potential effect of this final rule and determined it would promote international trade by reducing the cost of export airworthiness approvals for Class II products (major components) and Class III products (parts and components). Unfunded Mandates Assessment Title II of the Unfunded Mandates Reform Act of 1995 (Pub. L. 104-4) requires each Federal agency to prepare a written statement assessing the effects of any Federal mandate in a proposed or final agency rule that may result in an expenditure of $100 million or more (adjusted annually for inflation with the base year 1995) in any one year by State, local, and tribal governments, in the aggregate, or by the private sector; such a mandate is deemed to be a “significant regulatory action.” The FAA currently uses an inflation-adjusted value of $128.1 million. This final rule does not contain such a mandate. The requirements of Title II do not apply. Executive Order 13132, Federalism The FAA has analyzed this final rule under the principles and criteria of Executive Order 13132, Federalism. We determined that this action will not have a substantial direct effect on the States, or the relationship between the national Government and the States, or on the distribution of power and responsibilities among the various levels of government, and, therefore, does not have federalism implications. Environmental Analysis FAA Order 1050.1E identifies FAA actions that are categorically excluded from preparation of an environmental assessment or environmental impact statement under the National Environmental Policy Act in the absence of extraordinary circumstances. The FAA has determined this rulemaking action qualifies for the categorical exclusion identified in paragraph 308(b) and involves no extraordinary circumstances. Regulations That Significantly Affect Energy Supply, Distribution, or Use The FAA has analyzed this final rule under Executive Order 13211, Actions Concerning Regulations that Significantly Affect Energy Supply, Distribution, or Use (May 18, 2001). We have determined that it is not a “significant energy action” under the executive order because it is not a “significant regulatory action” under Executive Order 12866, and it is not likely to have a significant adverse effect on the supply, distribution, or use of energy. Availability of Rulemaking Documents You can get an electronic copy of rulemaking documents using the Internet by— 1. Searching the Federal eRulemaking portal at *http://www.regulations.gov;* 2. Visiting the FAA's Regulations and Policies Web page at *http://www.faa.gov/regulations_policies/* ; or 3. Accessing the Government Printing Office's Web page at *http://www.gpoaccess.gov/fr/index.html.* You can also get a copy by sending a request to the Federal Aviation Administration, Office of Rulemaking, ARM-1, 800 Independence Avenue, SW., Washington, DC 20591, or by calling
(202)267-9680. Make sure to identify the amendment number or docket number of this rulemaking. Anyone is able to search the electronic form of all comments received into any of our dockets by the name of the individual submitting the comment (or signing the comment, if submitted on behalf of an association, business, labor union, etc.). You may review DOT's complete Privacy Act statement in the **Federal Register** published on April 11, 2000 (Volume 65, Number 70; Pages 19477-78) or you may visit *http://DocketsInfo.dot.gov.* Small Business Regulatory Enforcement Fairness Act The Small Business Regulatory Enforcement Fairness Act (SBREFA) of 1996 requires FAA to comply with small entity requests for information or advice about compliance with statutes and regulations within its jurisdiction. If you are a small entity and you have a question regarding this document, you may contact your local FAA official, or the person listed under the FOR FURTHER INFORMATION CONTACT heading at the beginning of the preamble. You can find out more about SBREFA on the Internet at *http://www.faa.gov/regulations_policies/rulemaking/sbre_act/* . List of Subjects in 14 CFR Part 21 Aircraft, Certification procedures for products and parts, Export airworthiness approvals. The Amendment In consideration of the foregoing, the Federal Aviation Administration amends Chapter I of Title 14, Code of Federal Regulations as follows: PART 21—CERTIFICATION PROCEDURES FOR PRODUCTS AND PARTS 1. The authority citation for part 21 continues to read as follows: Authority: 42 U.S.C. 7572; 49 U.S.C. 106(g), 40105, 40113, 44701-44702, 44707, 44709, 44711, 44713, 44715, 45303. 2. Amend § 21.325 by adding new paragraph (b)(4) to read as follows: § 21.325 Export airworthiness approvals. (b)* * *
(4)Class II and III products located outside of the United States if the FAA finds no undue burden in administering the applicable requirements of Title 49 U.S.C. and this subchapter. Issued in Washington, DC, on November 6, 2007. Robert A. Sturgell, Acting Administrator. [FR Doc. E7-22111 Filed 11-9-07; 8:45 am] BILLING CODE 4910-13-P DEPARTMENT OF TRANSPORTATION Federal Aviation Administration 14 CFR Part 39 [Docket No. FAA-2007-28828; Directorate Identifier 2007-NM-010-AD; Amendment 39-15258; AD 2007-23-12] RIN 2120-AA64 Airworthiness Directives; Boeing Model 707 Airplanes and Model 720 and 720B Series Airplanes AGENCY: Federal Aviation Administration (FAA), Department of Transportation (DOT). ACTION: Final rule. SUMMARY: The FAA is adopting a new airworthiness directive
(AD)for all Boeing Model 707 airplanes and Model 720 and 720B series airplanes. This AD requires accomplishing an airplane survey to define the configuration of certain system installations, and repair of any discrepancy found. This AD also requires modifying the fuel system by installing lightning protection for the fuel quantity indication system (FQIS), ground fault relays for the fuel boost pumps, and additional power relays for the center tank fuel pumps and uncommanded on-indication lights at the flight engineer's panel. This AD results from fuel system reviews conducted by the manufacturer. We are issuing this AD to prevent certain failures of the fuel pumps or FQIS, which could result in a potential ignition source inside the fuel tank, which, in combination with flammable fuel vapors, could result in a fuel tank explosion and consequent loss of the airplane. DATES: This AD becomes effective December 18, 2007. ADDRESSES: For service information identified in this AD, contact Boeing Commercial Airplanes, P.O. Box 3707, Seattle, Washington 98124-2207. Examining the AD Docket You may examine the AD docket on the Internet at *http://www.regulations.gov;* or in person at the Docket Management Facility between 9 a.m. and 5 p.m., Monday through Friday, except Federal holidays. The AD docket contains this AD, the regulatory evaluation, any comments received, and other information. The address for the Docket Office (telephone 800-647-5527) is the Document Management Facility, U.S. Department of Transportation, Docket Operations, M-30, West Building Ground Floor, Room W12-140, 1200 New Jersey Avenue, SE., Washington, DC 20590. FOR FURTHER INFORMATION CONTACT: Kathrine Rask, Aerospace Engineer, Propulsion Branch, ANM-140S, FAA, Seattle Aircraft Certification Office, 1601 Lind Avenue, SW., Renton, Washington 98057-3356; telephone
(425)917-6505; fax
(425)917-6590. SUPPLEMENTARY INFORMATION: Discussion The FAA issued a notice of proposed rulemaking
(NPRM)to amend 14 CFR part 39 to include an AD that would apply to all Boeing Model 707 airplanes and Model 720 and 720B series airplanes. That NPRM was published in the **Federal Register** on August 1, 2007 (72 FR 41958). That NPRM proposed to require accomplishing an airplane survey to define the configuration of certain system installations, and repair of any discrepancy found. That NPRM proposed to also require modifying the fuel system by installing lightning protection for the fuel quantity indication system, ground fault relays for the fuel boost pumps, and additional power relays for the center tank fuel pumps and uncommanded on-indication lights at the flight engineer's panel. Comments We provided the public the opportunity to participate in the development of this AD. We have considered the single comment received. The commenter, Boeing, supports the NPRM. Conclusion We have carefully reviewed the available data, including the comment received, and determined that air safety and the public interest require adopting the AD as proposed. Costs of Compliance There are about 185 airplanes of the affected design in the worldwide fleet. This AD affects about 52 airplanes of U.S. registry. The required survey takes about 20 work hours per airplane, at an average labor rate of $80 per work hour. Based on these figures, the estimated cost of the survey for U.S. operators is $83,200, or $1,600 per airplane. Because the manufacturer has not yet developed a modification commensurate with the actions specified by this AD, we cannot provide specific information regarding the required number of work hours or the cost of parts to do the required modification. In addition, modification costs will likely vary depending on the operator and the airplane configuration. The compliance time of 72 months should provide ample time for the development, approval, and installation of an appropriate modification. Based on similar modifications accomplished previously on other airplane models, however, we can reasonably estimate that the modification may require as many as 420 work hours per airplane, at an average labor rate of $80 per work hour. Required parts may cost up to $185,000 per airplane. Based on these figures, the estimated cost of the modification for U.S. operators may cost up to $11,367,200, or $218,600 per airplane. Authority for This Rulemaking Title 49 of the United States Code specifies the FAA's authority to issue rules on aviation safety. Subtitle I, Section 106, describes the authority of the FAA Administrator. Subtitle VII, Aviation Programs, describes in more detail the scope of the Agency's authority. We are issuing this rulemaking under the authority described in Subtitle VII, Part A, Subpart III, Section 44701, “General requirements.” Under that section, Congress charges the FAA with promoting safe flight of civil aircraft in air commerce by prescribing regulations for practices, methods, and procedures the Administrator finds necessary for safety in air commerce. This regulation is within the scope of that authority because it addresses an unsafe condition that is likely to exist or develop on products identified in this rulemaking action. Regulatory Findings We have determined that this AD will not have federalism implications under Executive Order 13132. This AD will not have a substantial direct effect on the States, on the relationship between the national government and the States, or on the distribution of power and responsibilities among the various levels of government. For the reasons discussed above, I certify that this AD:
(1)Is not a “significant regulatory action” under Executive Order 12866;
(2)Is not a “significant rule” under DOT Regulatory Policies and Procedures (44 FR 11034, February 26, 1979); and
(3)Will not have a significant economic impact, positive or negative, on a substantial number of small entities under the criteria of the Regulatory Flexibility Act. We prepared a regulatory evaluation of the estimated costs to comply with this AD and placed it in the AD docket. See the ADDRESSES section for a location to examine the regulatory evaluation. List of Subjects in 14 CFR Part 39 Air transportation, Aircraft, Aviation safety, Safety. Adoption of the Amendment Accordingly, under the authority delegated to me by the Administrator, the FAA amends 14 CFR part 39 as follows: PART 39—AIRWORTHINESS DIRECTIVES 1. The authority citation for part 39 continues to read as follows: Authority: 49 U.S.C. 106(g), 40113, 44701. § 39.13 [Amended] 2. The Federal Aviation Administration
(FAA)amends § 39.13 by adding the following new airworthiness directive (AD): **2007-23-12 Boeing:** Amendment 39-15258. Docket No. FAA-2007-28828; Directorate Identifier 2007-NM-010-AD. Effective Date
(a)This AD becomes effective December 18, 2007. Affected ADs
(b)None. Applicability
(c)This AD applies to all Boeing Model 707-100 long body, -200, -100B long body, and -100B short body series airplanes; and Model 707-300, -300B, -300C, and -400 series airplanes; and Model 720 and 720B series airplanes; certificated in any category. Unsafe Condition
(d)This AD results from fuel system reviews conducted by the manufacturer. We are issuing this AD to prevent certain failures of the fuel pumps or fuel quantity indication system (FQIS), which could result in a potential ignition source inside the fuel tank, which, in combination with flammable fuel vapors, could result in fuel tank explosion and consequent loss of the airplane. Compliance
(e)You are responsible for having the actions required by this AD performed within the compliance times specified, unless the actions have already been done. Airplane Survey
(f)Within 12 months after the effective date of this AD: Conduct an airplane survey that defines the configuration of system installations for the wing leading edges, wing-to-body area, electrical equipment bay, flight deck, and FQIS using a method approved in accordance with the procedures specified in paragraph (h)(1) of this AD. If any discrepancy is detected, repair before further flight using a method approved in accordance with the procedures specified in paragraph (h)(1) of this AD. Submit the survey results to the Manager, Seattle Aircraft Certification Office (ACO), FAA, 1601 Lind Avenue SW., Renton, Washington 98057-3356, at the applicable time specified in paragraph (f)(1) or (f)(2) of this AD. The report must include the survey results (e.g., photographs and sketches, part numbers of FQIS components and fuel pumps, and the actual configuration of FQIS and the fuel pump control systems), a description of any discrepancy found, the airplane serial number, and the number of landings and flight hours on the airplane. Under the provisions of the Paperwork Reduction Act (44 U.S.C. 3501 *et seq.* ), the Office of Management and Budget
(OMB)has approved the information collection requirements contained in this AD and has assigned OMB Control Number 2120-0056.
(1)If the survey was done after the effective date of this AD: Submit the report within 30 days after the survey.
(2)If the survey was done before the effective date of this AD: Submit the report within 30 days after the effective date of this AD. Note 1: For the purposes of this AD, “discrepancy” is defined as any wear or deterioration (e.g., damage, fluid leaks, corrosion, cracking, or system failures) that might prevent the airplane from being in an airworthy condition. Modification of Fuel System
(g)Within 72 months after the effective date of this AD: Modify the fuel system as specified in paragraphs (g)(1), (g)(2), and (g)(3) of this AD, using a method approved in accordance with the procedures specified in paragraph (h)(1) of this AD.
(1)Replace the FQIS wire bundle along the leading edge of the left and right wings with a new wire bundle that has a lightning shield that is separated from other wiring.
(2)Replace each fuel pump relay with a ground fault interrupter relay.
(3)Install redundant power relays for the center tank fuel pumps and uncommanded on-indication lights at the flight engineer's panel. Alternative Methods of Compliance (AMOCs) (h)(1) The Manager, Seattle ACO has the authority to approve AMOCs for this AD, if requested in accordance with the procedures found in 14 CFR 39.19.
(2)To request a different method of compliance or a different compliance time for this AD, follow the procedures in 14 CFR 39.19. Before using any approved AMOC on any airplane to which the AMOC applies, notify your appropriate principal inspector
(PI)in the FAA Flight Standards District Office (FSDO), or lacking a PI, your local FSDO. Material Incorporated by Reference
(i)None. BILLING CODE 4910-13-P ER13NO07.000 ER13NO07.001 Issued in Renton, Washington, on October 12, 2007. Stephen P. Boyd, Assistant Manager, Transport Airplane Directorate, Aircraft Certification Service. [FR Doc. 07-5635 Filed 11-9-07; 8:45 am]
Connectionstraces to 34
Traces to 34 documents
U.S. Code
28 references not yet in our index
  • 2 CFR 175
  • Pub. L. 108-193
  • Pub. L. 106-386
  • Pub. L. 109-164
  • 41 USC 405
  • 2 CFR 180
  • 2 CFR 175.25
  • 2 CFR 175.25(b)
  • 22 USC 288-288f
  • Pub. L. 108-265
  • 7 CFR 210
  • 7 CFR 215
  • 7 CFR 220
  • 7 CFR 235
  • 7 CFR 245
  • 7 CFR 215.2
  • 5 USC 601-612
  • Pub. L. 104-4
  • 7 CFR 3015
  • 5 CFR 1320
  • 42 USC 1751-1760
  • 80 Stat. 888
  • 9 CFR 94
  • 7 CFR 2.22
  • 14 CFR 21
  • Pub. L. 96-354
  • Pub. L. 96-39
  • 14 CFR 39
Citation graph
cites case law
Unknown
Interim final guidance
U.S.C.§ 7104
U.S.C.§ 503
U.S.C.§ 1111
U.S.C.§ 7102
U.S.C.§ 1601
U.S.C.§ 1751
U.S.C.§ 1771
U.S.C.§ 1758
U.S.C.§ 1773
Cite2 CFR 175
Pub. L.Pub. L. 108-193
Pub. L.Pub. L. 106-386
Cites 62 · showing 12Cited by 0 across 0 sources
★   the supreme law of the land   ★
Don't Tread on Me
E Pluribus Unum — out of many, one

"If you don't know your rights, you don't have any."

Marginalia · a citizen's law index
A research desk, not legal advice. Always read the cited source before relying on a summary.
Questions or an issue? support@self-law.org
disclaimerMarginalia is a research index, not a law firm. Nothing on this site is legal, tax, or financial advice and no attorney–client relationship is formed by using it. Statutes, regulations, and case law change; summaries, search results, AI output, and member posts may be incomplete, out of date, or wrong. Any interpretation drawn from material on this site should be validated by a licensed attorney in your jurisdiction before you act on it.