B-318974
November 17, 2009
The Honorable Tom Harkin
Chairman
The Honorable Michael B. Enzi
Ranking Minority Member
Committee on Health, Education, Labor, and Pensions
United States Senate
The Honorable George Miller
Chairman
The Honorable John Kline
Ranking Minority Member
Committee on Education and Labor
House of Representatives
Subject: Department ofEducation: General and Non-Loan Programmatic Issues
Pursuant to section801(a)(2)(A) of title 5, United States Code, this is our report on a major rulepromulgated by the Department of Education (Education), entitled General andNon-Loan Programmatic Issues (RIN: 1840-AC99).We received the rule on November 2, 2009. It was published in the Federal Register as final regulations on October 29, 2009, withan effective date of July 1, 2010, and an early implementation date, at thediscretion of participating institutions, of November 1, 2009. 74 Fed. Reg. 55,902.
The finalregulations amend regulations forinstitutional eligibility under the Higher Education Act of 1965, the StudentAssistance General Provisions, the Federal Work-Study (FWS) Programs, theTeacher Education Assistance for College and Higher Education (TEACH) GrantProgram, the Federal Pell Grant Program, and the Leveraging EducationalAssistance Partnership Program (LEAP) to implement various general and non-loanprovisions of the Higher Education Act of 1965 (HEA), as amended by the HigherEducation Opportunity Act of 2008 (HEOA) and other recently enactedlegislation.
Enclosed is our assessment of Educations compliance withthe procedural steps required by section 801(a)(1)(B)(i) through (iv) of title5 with respect to the rule. Our reviewof the procedural steps taken indicates that Education complied with theapplicable requirements.
If you have any questions about this report or wish tocontact GAO officials responsible for the evaluation work relating to thesubject matter of the regulation, please contact Shirley A. Jones, AssistantGeneral Counsel, at (202) 512-8156.
signed
Robert J. Cramer
Managing Associate General Counsel
Enclosure
cc: ElizabethA.M. McFadden
Assistant General Counsel for
Regulatory Services
Office of General Counsel
Department of Education
ENCLOSURE
REPORT UNDER 5U.S.C. sect.801(a)(2)(A) ON A MAJOR RULE
ISSUED BY THE
DEPARTMENT OF EDUCATION
ENTITLED
"GENERAL AND NON-LOAN PROGRAMMATIC ISSUES"
(RIN: 1840-AC99)
(i) Cost-benefit analysis
Educationhas assessed the potential costs and benefits and determined that the benefitsjustify the costs. Education states thatbenefits include greater transparencyabout consumer information and campus safety for prospective and currentstudents at institutions participating in the federal student financialassistance programs, copyright infringement policies, requirements forreadmission of service members, explanation of extenuating circumstances underwhich TEACH Grant service obligations may be excused, requirements for programsserving students with intellectual disabilities, and additional guidelines forfederal grant and work-study programs. Educationstates that costsinclude requiring regulated entitiesto develop new disclosures and other materials, as well as accompanyingdissemination processes in order to implement the statutory provisions. These changes are estimated to increaseburden on entities or individuals participating in the federal studentassistance programs by 253,718 hours. Accordingto Education, virtually all of the increased burden is associated withinstitutions. A small amount, 384 hours,is associated with students. Themonetized cost of this additional burden, using loaded wage data developed bythe Bureau of Labor Statistics, is $4.7 million.
(ii) Agency actions relevant to the RegulatoryFlexibility Act, 5 U.S.C. sections603-605, 607, and 609
Educationcertifies that the final regulations will not have a significant economicimpact on a substantial number of small entities.
(iii) Agency actions relevant to sections 202-205 ofthe Unfunded Mandates Reform Act of 1995, 2 U.S.C. sections1532-1535
In its submission to the Comptroller General, Educationdid not include an analysis of the final regulations under the Act.
(iv) Other relevantinformation or requirements under acts and executive orders
Administrative ProcedureAct (APA), 5 U.S.C. sections551 et seq.
The final regulations were issued using the notice andcomment procedures found at 5 U.S.C. sect. 553.On August 21, 2009, the Secretary published a notice of proposedrulemaking (NPRM) for general and non-loan programmatic issues. 74 Fed. Reg. 42,380. Education received timely comments from morethan 113 parties, which are addressed in the final regulations. 74 Fed. Reg. 55,904. For the changes needed in section 668.43, theSecretary found it unnecessary to conduct negotiated rulemaking under section492 of the HEA and found good cause to forego notice and comment under section553 of the APA because it was impracticable, unnecessary, or contrary to thepublic interest.
Paperwork Reduction Act, 44 U.S.C. sections3501-3520
Certainfinal sections contain information collection requirements. Seesections 668.14, 668.18, 668.23, 668.28, 668.41, 668.43, 668.45, 668.46, 668.49,668.232, 668.233, 686.41, 686.42, 690.63, 690.64, 690.67, 692.21, and 692.100,692.101, 692.111. Education has submitted a copy of thesesections to the Office of Management and Budget (OMB) for its review.
Statutory authorization for the rule
Education states the final regulations are made under theauthority set forth in 20 U.S.C.A. sect. 1089(c)(2)(A).
Executive Order No. 12,866 (Regulatory Planning andReview)
Educationdetermined this action is economically significant because it will have an annual effect on the economyof more than $100 million.
