94-4257. Federal Family Education Loan Program; Proposed Rule  

  • [Federal Register Volume 59, Number 38 (Friday, February 25, 1994)]
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    From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
    [FR Doc No: 94-4257]
    
    
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    [Federal Register: February 25, 1994]
    
    
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    Part VII
    
    
    
    
    
    Department of Education
    
    
    
    
    
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    34 CFR Part 682
    
    
    
    
    Federal Family Education Loan Program; Proposed Rule
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    DEPARTMENT OF EDUCATION
    
    34 CFR Part 682
    
    RIN 1840-AB62
    
     
    Federal Family Education Loan Program
    
    AGENCY: Department of Education.
    
    ACTION: Notice of proposed rulemaking.
    
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    SUMMARY: The Secretary proposes to amend the regulations governing the 
    Federal Family Education Loan (FFEL) Program. The FFEL Program consists 
    of the Federal Stafford, Federal Supplemental Loans for Students (SLS), 
    Federal PLUS, and the Federal Consolidation Loan programs. These 
    proposed regulations are needed to implement certain changes made to 
    the Higher Education Act of 1965, as amended (HEA), by the Higher 
    Education Amendments of 1992 (Pub. L. 102-325). Pub. L. 102-325 added 
    new section 428J to the HEA which authorizes the Secretary to establish 
    a demonstration program for loan forgiveness for certain types of 
    professional or public service. Minor changes to section 428J were made 
    by the National and Community Service Trust Act of 1993 (Pub. L. 103-
    82). Section 428J was also recently amended by the Higher Education 
    Technical Amendments of 1993 (Pub. L. 103-208). Those additional 
    statutory changes are also reflected in these proposed rules. Under 
    section 428J of the HEA, the Secretary is authorized to forgive 
    portions of Federal Stafford Loans incurred by a student borrower who 
    performs volunteer service or works in certain teaching or nursing 
    areas. This program is not currently funded.
    
    DATES: Comments must be received on or before March 28, 1994.
    
    ADDRESSES: All comments concerning these proposed regulations should be 
    addressed to Patricia Newcombe, Acting Chief, FFEL Program Section, 
    Loans Branch, Division of Policy Development, Policy, Training, and 
    Analysis Service, U.S. Department of Education, 400 Maryland Avenue, 
    SW., (room 4310, ROB-3), Washington, DC 20202-5449.
        A copy of any comments that concern information collection 
    requirements should also be sent to the Office of Management and Budget 
    at the address listed in the Paperwork Reduction Act section of the 
    preamble.
    
    FOR FURTHER INFORMATION CONTACT: Barbara Bauman, Program Specialist, 
    Loans Branch, Division of Policy Development, Policy, Training, and 
    Analysis Service, U.S. Department of Education, 400 Maryland Avenue, 
    SW., (room 4310, ROB-3), Washington, DC 20202-5449. Telephone: (202) 
    708-8242. Individuals who use a telecommunications device for the deaf 
    (TDD) may call the Federal Information Relay Service (FIRS) at 1-800-
    877-8339 between 8 a.m. and 8 p.m., Eastern time, Monday through 
    Friday.
    
    SUPPLEMENTARY INFORMATION:
    
    Background
    
        New section 428J of the HEA requires the Secretary to promulgate 
    regulations to establish a loan forgiveness demonstration program in 
    the Federal Stafford Loan Program. The purpose of the demonstration 
    program is to encourage individuals to enter the teaching and nursing 
    professions and to perform national and community service by offering 
    partial Federal Stafford loan forgiveness. The loan forgiveness program 
    is available only to new borrowers who, as of October 1, 1989, had no 
    outstanding debt on a FFEL Program loan.
    
    Summary of Comments from Regional Meetings
    
        In compliance with section 492(a) of the HEA, the Secretary 
    convened regional meetings during September 1992 to obtain public 
    involvement in the development of proposed regulations. The purpose of 
    the meetings was to ``provide for a comprehensive discussion and 
    exchange of information concerning the implementation'' of certain 
    parts of Pub. L. 102-325. In addition, attendees of the regional 
    meetings were asked to nominate individuals to act as negotiators in 
    the negotiated rulemaking process required by section 492(b) of the 
    HEA.
        The regional meetings were conducted for two days each in San 
    Francisco, California; New York, New York; Atlanta, Georgia; and Kansas 
    City, Missouri. Each participant at the regional meetings was assigned 
    to one of six groups which were asked to discuss particular issue areas 
    identified by the Department. Each group at the regional meetings 
    prepared a report of its discussion and recommendations and those 
    reports were presented to the Department for consideration during the 
    preparation of the proposed regulations.
        One of the groups at each regional meeting was asked to discuss the 
    loan forgiveness demonstration program established by section 428J of 
    the HEA. However, none of the groups discussed the program in much 
    detail. Each of the groups recommended that the Department implement 
    the demonstration program in the same way that the provisions for loan 
    cancellation for public service are implemented in the Perkins Loan 
    Program. The Department considered these comments in preparing draft 
    proposed regulations.
    
    Negotiated Rulemaking
    
        After completion of the regional meetings, the Department prepared 
    draft proposed regulations to implement the provisions of Pub. L. 102-
    325 relating to the FFEL Program. In accordance with the requirements 
    of section 492(b) of the HEA, those regulations were submitted to a 
    negotiated rulemaking process. During the weeks of January 4-8 and 
    February 1-5, 1993, the Department met with negotiators selected from 
    among individuals nominated by attendees at the regional meetings.
        The discussion below of the proposed regulations reflects those 
    areas where the negotiators reached a consensus and the proposed 
    regulations reflect that agreement. The discussion below also indicates 
    where consensus was not reached during the negotiations. However, the 
    negotiators did not choose to discuss every part of the proposed 
    regulations. Accordingly, the discussion below of those issues not 
    discussed during the negotiations reflects only the views of the 
    Secretary.
    
    Proposed Regulations
    
        The Secretary is proposing to amend 34 CFR part 682 to add a new 
    Sec. 682.215 to the regulations. These regulations are being proposed 
    if it becomes necessary to implement section 428J of the HEA that 
    authorizes a demonstration program under which certain Federal Stafford 
    loan borrowers may have a portion of their loan debt forgiven. Under 
    the program the Secretary may forgive a percentage of the loan debt 
    that accrued on Federal Stafford loans that were borrowed (1) during 
    the borrower's last two years of undergraduate education or, (2) for up 
    to two academic years, during which the borrower returned to an 
    institution of higher education after graduation from an institution of 
    higher education to obtain a teaching certificate or additional 
    certification. An eligible borrower may have a specific percentage of 
    his or her eligible loans forgiven for each year of service performed.
    
    Borrower Eligibility
    
        Under section 428J of the HEA, the borrower is eligible for loan 
    forgiveness if the borrower serves as: (1) A full-time teacher in 
    certain elementary and secondary schools teaching certain subjects; (2) 
    a full-time nurse in particular types of hospitals or health care 
    centers; (3) a volunteer under the Peace Corps Act or under the 
    Domestic Volunteer Service Act of 1973; or (4) a full-time employee of 
    a tax-exempt organization under section 501(c)(3) of the Internal 
    Revenue Code of 1986 who makes below the greater of the minimum wage or 
    the poverty line for a family of two. In defining the types of health 
    care facilities where an eligible borrower may work, the Secretary 
    consulted with staff members of the Department of Health and Human 
    Services. Definitions that apply to the teaching category were largely 
    extracted from 34 CFR 682.210(q) at the suggestion of the negotiators. 
    For the tax-exempt organization service forgiveness category, the 
    Secretary is requiring eligible borrowers to work for an organization 
    that serves low-income persons and communities to assist in eliminating 
    poverty and related conditions. In defining this area of service, the 
    Secretary remains consistent with existing deferment provisions for 
    full-time volunteer service in the FFEL Program. The Secretary believes 
    that loan forgiveness is the more desirable benefit and as such should 
    not be given to a borrower who would not otherwise meet the 
    requirements for deferment and repayment for the same service. The 
    proposed regulations would establish criteria and procedures governing 
    the application and eligibility process for the loan forgiveness under 
    the demonstration program.
        To qualify for loan forgiveness, a borrower must be in repayment, 
    or in an authorized period of deferment or forbearance. During the 
    negotiated rulemaking sessions, there was considerable discussion 
    surrounding the issue of whether lenders should be required to 
    automatically grant administrative forbearance to those borrowers who 
    are serving in a capacity that meets the criteria of the new 
    Sec. 682.215 (e), (f) or (g) for loan forgiveness. The negotiators felt 
    that it was necessary to provide forbearance in cases where a borrower 
    does not qualify for a deferment but would seem to qualify for loan 
    forgiveness. Although the Secretary recognized at the time that 
    borrowers serving in the fields that qualify under Sec. 682.215 may be 
    receiving low wages, the Secretary acknowledged that Congress did not 
    provide a forbearance or deferment for borrowers in this program in the 
    law. However, as a result of changes made by Pub. L. 103-208, the law 
    now provides forbearance for borrowers who are engaged in qualifying 
    service.
        As recommended by the negotiators, the proposed regulations provide 
    that a defaulted borrower is not eligible for loan forgiveness under 
    the demonstration program unless the borrower has made satisfactory 
    repayment arrangements for the defaulted loan or loans. However, the 
    forgiveness would apply only to the loan or loans that are not in 
    default.
    
    Application
    
        The Secretary is proposing that, to qualify for loan forgiveness 
    under the demonstration program, a borrower must submit to the 
    Secretary or his designee an application and any necessary supporting 
    documentation by October 1 of each year following the year served in 
    qualifying service as a full-time volunteer, full-time teacher or full-
    time nurse. A concern expressed during the negotiated rulemaking 
    process was how the Secretary or his designee would accommodate any 
    incomplete applications submitted by borrowers by the due date. There 
    was no consensus among the negotiators as to whether a borrower who 
    does not have complete documentation submitted by the October 1 
    deadline should be allowed to later supply the missing documentation. 
    The Secretary is interested in receiving public comment as to what is 
    an acceptable time-frame in which to inform a borrower that additional 
    documentation is needed and to collect the information necessary to 
    complete the application.
        The Secretary is proposing to allow borrowers who serve in more 
    than one qualifying organization to combine the time served in each 
    organization to satisfy the requirement that the borrower be employed 
    ``full-time.'' The term ``full-time'' is not defined in section 428J of 
    the statute. However, the Secretary and the negotiators reached a 
    consensus that the term ``full-time,'' for purposes of these 
    regulations, be defined as the period of time generally accepted as the 
    industry standard for the given profession. It is the duty of the 
    authorizing official or officials (in the case of multiple employment 
    of the borrower) to certify the borrower's service on the application. 
    If a borrower combines employment to meet the full-time employment 
    definition, the borrower would be required to obtain a certification 
    from each employment facility's authorizing official. The Secretary 
    will make a final determination as to whether the borrower's certified 
    combined service amounts to full-time. The certification will cover the 
    year of service as defined in Sec. 682.215 (e), (f), and (g) for the 
    particular service category. A new application and certification is 
    required for each year of service that the borrower wishes to apply for 
    loan forgiveness.
        The Secretary acknowledges that the statute originally indicated 
    that a borrower receiving loan forgiveness based on volunteer service 
    could become eligible for loan forgiveness after agreeing in writing to 
    volunteer, before service was completed. However, a consensus was 
    reached that the statute did not intend to treat borrowers differently 
    based on the type of service involved. Pub. L. 103-208 amended section 
    428J to be consistent with this approach. Therefore, the proposed 
    regulations provide that an eligible borrower may apply for the 
    forgiveness only after the year of service is completed.
        The Secretary proposes that once a borrower has met the 
    requirements for forgiveness under Sec. 682.215 (e), (f) or (g) the 
    borrower will have a percentage of his or her loan forgiven based on 
    which year of service has been completed. A borrower who qualifies for 
    forgiveness under this demonstration program shall have 15 percent of 
    the total amount of Federal Stafford loans incurred during the 
    borrower's last two years of undergraduate education forgiven for the 
    borrower's service for each of the first two years of service, 20 
    percent of the total amount for each third and fourth year of service, 
    and 30 percent of such total amount for the fifth year of service.
    
    Limitations
    
        The Secretary believes that the intent of Congress in enacting 
    section 428J was to have the Secretary forgive 100 percent of a 
    borrower's loans received for the last 2 years of undergraduate 
    education by the end of a borrower's five-year period of service. 
    However, the Secretary and the negotiators were compelled at the outset 
    to consider the constraints associated with this program, since it is a 
    demonstration program with a defined appropriation. The negotiators 
    discussed the fact that the program may not have adequate funding to 
    provide the full annual forgiveness amounts to all borrowers who 
    qualify. The negotiators discussed a number of possible approaches to 
    selecting the borrowers who would be allowed to benefit from the 
    forgiveness program from among the eligible borrowers if adequate 
    funding is not available but did not reach consensus regarding the use 
    of a particular approach. However, Pub. L. 103-208 directs the 
    Secretary to provide loan forgiveness on a first-come, first-served 
    basis subject to the availability of appropriations. Accordingly, the 
    Secretary will make a determination on each application as it is 
    received and will use a first-come, first-served approach to award loan 
    forgiveness in the amounts provided by section 428J of the Act until 
    the amount of appropriated funds is exhausted.
    
    Regulatory Flexibility Act Certification
    
        The Secretary certifies that these proposed regulations would not 
    have a significant economic impact on a substantial number of small 
    entities. These proposed regulations will only affect a small 
    percentage of institutions that participate in the FFEL Program.
    
    Paperwork Reduction Act of 1980
    
        Section 682.215(c) contains an information collection requirement. 
    As required by the Paperwork Reduction Act of 1980, the Department of 
    Education will submit a copy of this section to the Office of 
    Management and Budget (OMB) for its review. (44 U.S.C. 3504(h))
        Certain Federal Stafford loan borrowers are eligible to apply for 
    loan forgiveness under these regulations. The Department needs and uses 
    the information provided on the application to determine an 
    individual's eligibility for loan forgiveness.
        Annual public reporting and recordkeeping burden for this 
    collection of information is estimated to average .25 of an hour per 
    response for 2000 respondents, including the time for reviewing 
    instructions, searching existing data sources, gathering and 
    maintaining the data needed, and reviewing the collection of 
    information.
        Organizations and individuals desiring to submit comments on the 
    information collection requirements should direct them to the Office of 
    Information and Regulatory Affairs, room 3002, New Executive Office 
    Building, Washington, DC 20503; Attention: Dan Chenok.
    
    Invitation to Comment
    
        Interested persons are invited to submit comments and 
    recommendations regarding these proposed regulations.
        All comments submitted in response to these proposed regulations 
    will be available for public inspection, during and after the comment 
    period, in room 4310, Regional Office Building 3, 7th and D Streets, 
    SW., Washington, DC between the hours of 8:30 a.m. and 4 p.m., Monday 
    through Friday of each week except federal holidays.
    
    Assessment of Educational Impact
    
        The Secretary particularly requests comments on whether the 
    proposed regulations in this document would require transmission of 
    information that is being gathered by or is available from any other 
    agency or authority of the United States.
    
    List of Subjects in 34 CFR Part 682
    
        Administrative practice and procedure, Colleges and universities, 
    Education, Loan programs-education, Reporting and recordkeeping 
    requirements, Student aid, Vocational education.
    
    (Catalog of Federal Domestic Assistance Number 84.032, Federal 
    Family Education Loan Program)
    
        Dated: February 17, 1994.
    Richard W. Riley,
    Secretary of Education.
    
        The Secretary proposes to amend part 682 of title 34 of the Code of 
    Federal Regulations as follows:
    
    PART 682--FEDERAL FAMILY EDUCATION LOAN PROGRAM
    
        1. The authority citation for part 682 continues to read as 
    follows:
    
        Authority: 20 U.S.C. 1071 to 1087-2, unless otherwise noted.
    
        2. A new section 682.215 is added to read as follows:
    
    
    Sec. 682.215  Federal Stafford Loan forgiveness demonstration program.
    
        (a) General. The Federal Stafford Loan forgiveness demonstration 
    program is intended to encourage individuals to enter the teaching and 
    nursing professions and to perform national and community service. 
    Under this demonstration program, the Secretary repays portions of 
    Federal Stafford obligations that were incurred by a borrower during 
    the borrower's last two years of undergraduate education if that 
    borrower enters those professions or performs that service. For 
    purposes of this section, an eligible borrower is a borrower who, prior 
    to October 1, 1989, had no outstanding debt under the FFEL programs.
        (b) Borrower eligibility; requirements for qualification. A 
    borrower may obtain loan forgiveness under this program if he or she is 
    employed as a full-time teacher in certain elementary and secondary 
    schools teaching certain subjects or as a full-time nurse in certain 
    types of hospitals or health care centers, or is serving as a volunteer 
    under the Peace Corps Act or under the Domestic Volunteer Service Act 
    of 1973, or is performing comparable service as a full-time employee of 
    a tax exempt organization under section 501(c)(3) of the Internal 
    Revenue Code of 1986. For purposes of this section, ``full-time'' means 
    the standard used by a State or profession in defining full-time 
    employment. For a borrower serving in more than one organization, the 
    determination of ``full-time'' is based on the combination of all 
    qualifying employment. A borrower who is in default on a FFEL loan and 
    has not made satisfactory repayment arrangements is not eligible for 
    forgiveness. However, if a borrower has made satisfactory repayment 
    arrangements on the loan or loans in default, the forgiveness applies 
    only to the loan or loans held by the holder that are not in default.
        (c) Application. To qualify for the forgiveness program, an 
    eligible borrower shall apply to the Secretary or his designee by 
    October 1 of each year in writing on a form and according to procedures 
    established by the Secretary following the completed year of service. 
    Eligible borrowers will be chosen on a first-come, first-served basis 
    to participate and will receive forbearance for each year of service 
    for which forgiveness is requested.
        (d) Limitation; Stafford forgiveness recipients. The total amount 
    of loans forgiven is limited to the amount of funds appropriated for 
    the fiscal year for the demonstration program.
        (e) Borrower eligibility; teaching forgiveness. (1) To qualify for 
    teaching loan forgiveness under this section, a borrower must teach 
    full-time for a year (as defined by the jurisdiction in which the 
    borrower is employed) in a teacher shortage area as certified by the 
    authorizing official. For purposes of this paragraph a teacher is 
    teaching in a teacher shortage area if--
        (i) The teacher teaches in a school that satisfies the criteria in 
    section 465(a)(2)(A) of the Act for loan cancellation for Perkins loan 
    recipients who teach in those schools; and
        (ii) The teacher teaches mathematics, science, foreign languages, 
    special education, bilingual education or in any other field of 
    expertise where the State educational agency determines there is a 
    shortage of qualified teachers.
        (2) The borrower, in the time frame provided under paragraph (c) of 
    this section, for the first year of service for which forgiveness is 
    requested, must provide to the Secretary or his designee--
        (i) A statement by the chief administrative officer of the public 
    elementary or secondary school in which the borrower was teaching--
        (A) Certifying the year that the borrower was employed as a full-
    time teacher;
        (B) Certifying which subject area listed in paragraph (e)(1)(ii) of 
    this section or designated by the state educational agency the borrower 
    taught; and
        (C) Verifying that the borrower teaches or taught in a school that 
    satisfies the requirements of paragraph (e)(1)(i) of this section.
        (ii) To continue to receive forgiveness in a subsequent year, the 
    borrower shall provide the Secretary or his designee with a statement 
    by the chief administrative officer of the public elementary or 
    secondary school in which the borrower was teaching, certifying--
        (A) The dates of the year of service;
        (B) That the borrower continued to be employed as a full-time 
    teacher; and
        (C) That the borrower continued to meet the designated subject area 
    and school requirements specified in this section.
        (f) Borrower eligibility; volunteer service forgiveness.
        (1)(i) To qualify for the volunteer service loan forgiveness under 
    this paragraph, a borrower must serve as a full-time volunteer for at 
    least a year (defined as twelve consecutive months) under--
        (A) The Peace Corps Act; or
        (B) The Domestic Volunteer Service Act of 1973 (ACTION programs); 
    or
        (ii) A borrower may also qualify for the volunteer service loan 
    forgiveness if the borrower performs service comparable to service 
    provided under paragraph (f)(1) of this section as a full-time employee 
    of an organization that is exempt from taxation under section 501(c)(3) 
    of the Internal Revenue Code of 1986, if the borrower does not receive 
    compensation that exceeds the greater of--
        (A) The minimum wage rate described in section 6 of the Fair Labor 
    Standards Act of 1938; or
        (B) An amount equal to 100 percent of the poverty line for a family 
    of two as defined in section 673(2) of the Community Services Block 
    Grant Act.
        (2) To qualify under this paragraph, the borrower must--
        (i) Work for an organization that provides services to low-income 
    persons and their communities to assist them in eliminating poverty and 
    poverty-related human, social, and environmental conditions; and
        (ii) Not, as part of his or her duties, give religious instruction, 
    conduct worship services, engage in religious proselytizing, or engage 
    in fund-raising to support religious activities.
        (3) The borrower, for the first year of service for which 
    forgiveness is requested under paragraphs (f)(1), (2), or (3) of this 
    section must provide to the Secretary or his designee a statement from 
    an authorized official of the organization or agency for whom the 
    borrower is working certifying--
        (i) That the borrower has served in a job that satisfies the 
    requirements of this paragraph;
        (ii) The date on which the borrower's service began; and
        (iii) The date on which the borrower completed the year of service.
        (4) To continue to receive loan forgiveness in a subsequent year 
    under this paragraph, the borrower must provide an additional statement 
    as described in this paragraph at the end of each additional year of 
    service.
        (g) Borrower eligibility; nursing profession loan forgiveness. (1) 
    To qualify for the nursing profession loan forgiveness under this 
    paragraph, a borrower must be employed as a full-time nurse for a 
    public hospital, a rural health clinic, a migrant health center, an 
    Indian Health Service Health Center, an Indian Health Center, a Native 
    Hawaiian Health Center or for an acute care or long-term care facility.
        (2) To qualify for loan forgiveness under this paragraph, a 
    borrower must provide to the Secretary or his designee--
        (i) A statement from an authorized official where the borrower is 
    employed certifying that the borrower was employed as a full-time nurse 
    for a facility described in this section and served for the term of at 
    least one year (defined as twelve consecutive months);
        (ii) The date on which the borrower's service began; and
        (iii) The date on which the borrower's year of service ended.
        (3) To continue to receive the forgiveness in a subsequent year 
    under this paragraph, the borrower must provide an additional statement 
    as described in this paragraph at the end of each additional year of 
    service.
        (h) Forgiveness amounts. (1) The Secretary repays the holder a 
    percentage of the total amount of Stafford loans owed by the eligible 
    borrower during--
        (i) The borrower's last 2 years of undergraduate education; or
        (ii) The 2 academic years in which a borrower who was not already 
    participating in loan repayment pursuant to this section returned to an 
    institution of higher education for the purpose of obtaining a post 
    graduate teaching certificate or additional teacher certification.
        (2) The Secretary repays loans on the following basis:
        (i) 15 percent of the total original principal amount of Stafford 
    loans for the first or second year in which the borrower meets the 
    requirements of this section.
        (ii) 20 percent of the total original principal amount for a third 
    or fourth year.
        (iii) 30 percent of the total original principal amount for a fifth 
    year.
        (3) The Secretary repays the holder for the amount of interest, 
    including capitalized interest, which accrued on the loan or loans 
    subject to forgiveness over the year.
        (4) The amount of payments made by the Secretary under paragraphs 
    (h)(2)(i), (ii), and (iii) of this section may not exceed the sum of 
    the outstanding principal balance of the loan or loans subject to 
    forgiveness plus all interest payments made in accordance with 
    paragraph (h)(3) of this section.
        (5) Payments received from a borrower who qualifies for loan 
    forgiveness under this section will not be returned.
        (i) Definitions. The following definitions apply to this section:
        Acute care facility means either a short-term care hospital in 
    which the average length of patient stay is less than 30 days, or a 
    short-term care hospital in which over 50% of all patients are admitted 
    to units where the average length of patient stay is less than 30 days.
        Elementary school means a public day or public residential school 
    that provides elementary education, as determined under State law.
        Indian Health Service Health Center means a health care facility 
    (whether operated directly by the Indian Health Service or operated by 
    a tribal contractor or grantee under the Indian Self-Determination 
    Act), that is physically separated from a hospital and that provides 
    one or more clinical treatment services, such as physician, dentist or 
    nursing services, available at least 40 hours a week for outpatient 
    care to persons of Indian or Alaska Native descent.
        Long-term care facility means a facility that offers services 
    designed to provide diagnostic, preventive, therapeutic, 
    rehabilitative, supportive and maintenance services for individuals who 
    have chronic physical or mental impairments. This facility may have a 
    variety of institutional and non-institutional health settings, 
    including the home, and the goal of the service is to promote the 
    optimum level of physical, social and psychological functioning.
        Native Hawaiian Health Center means an entity (as defined in 
    section 8 of the Native Hawaiian Health Care Act of 1988 (Pub. L. 100-
    579)--
        (1) That is organized under the laws of the State of Hawaii;
        (2) That provides or arranges for health care services through 
    practitioners licensed by the State of Hawaii, if licensure 
    requirements are applicable;
        (3) That is a public or private nonprofit entity; and
        (4) In which Native Hawaiian health practitioners significantly 
    participate in the planning, management, monitoring, and evaluation of 
    health services.
        Public hospital means a facility (as defined in 24 CFR 242.1)--
        (1) Owned by a State or unit of local government or by an 
    instrumentality thereof, or owned by a public benefit corporation 
    established by a State or unit of local government or by an 
    instrumentality thereof;
        (2) That provides community services for inpatient medical care of 
    the sick or injured (including obstetrical care);
        (3) Where not more than 50 percent of the total patient days during 
    any year are customarily assignable to the categories of chronic 
    convalescent and rest, drug and alcoholic, epileptic, mentally 
    deficient, mental, nervous and mental, and tuberculosis; and
        (4) That is licensed or regulated by the State (or, if there is no 
    State law providing for such licensing or regulation by the State, by 
    the municipality or other political subdivision in which the facility 
    is located).
        Rural Health Clinic means an entity (as defined under section 
    1861(aa)(2) of the Social Security Act and in 42 CFR 491.2 that--
        (1) Is primarily engaged in furnishing to outpatients, physicians' 
    services and services furnished by a physician assistant or by a nurse 
    practitioner, as well as those services and supplies covered under 
    sections 1861(s)(2)(A) and 1961(s)(10) of the Social Security Act;
        (2) In the case of a facility that is not a physician-directed 
    clinic, has an arrangement (consistent with the provisions of State and 
    local law relative to the practice, performance, and delivery of health 
    services) with one or more physicians under which provision is made for 
    the periodic review by those physicians of covered services furnished 
    by physician assistants and nurse practitioners, the supervision and 
    guidance by such patients as may be necessary, and the availability of 
    those physicians for advice and assistance in the management of medical 
    emergencies, and in the case of the physician-directed clinic, has one 
    or more of its staff physicians perform the activities accomplished 
    through such an arrangement;
        (3) Maintains clinical records on all patients;
        (4) Has arrangements with one or more hospitals, having agreements 
    in effect under section 1866 of the Social Security Act, for the 
    referral and admission of patients requiring inpatient services or 
    diagnostic or other specialized services as are not available at the 
    clinic;
        (5) Has written policies, that are developed with the advice of 
    (and with provision of review of those policies from time to time by) a 
    group of professional personnel, including one or more physicians and 
    one or more physician assistants or nurse practitioners, to govern 
    those services which it furnishes;
        (6) Has a physician assistant or nurse practitioner responsible for 
    the execution of policies described in paragraph (5) of this definition 
    and relating to the provision of the clinic's services;
        (7) Directly provides routine diagnostic services, including 
    clinical laboratory services, as prescribed in 42 CFR 491.2, and has 
    prompt access to additional diagnostic services from facilities meeting 
    requirements under title 42;
        (8) In compliance with State and Federal law, has available for 
    administering to patients of the clinic at least such drugs and 
    biologicals as are determined under 42 CFR 491.2 to be necessary for 
    the treatment of emergency cases and has appropriate procedures or 
    arrangements for storing, administering, and dispensing any drugs and 
    biologicals;
        (9) Has appropriate procedures for review of utilization of clinic 
    services to the extent that the Secretary determines to be necessary 
    and feasible; and
        (10) Meets other requirements as the Secretary of Health and Human 
    Services may find necessary in the interest of the health and safety of 
    the individuals who are furnished services by the clinic.
        Secondary school means a public day or public residential school 
    that provides secondary education, as determined under State law. In 
    the absence of applicable State law, the Secretary may determine, with 
    respect to that State, whether the term ``secondary school'' includes 
    education beyond the twelfth grade.
        State education agency means the agency or official designated by 
    the Governor or by State law as being primarily responsible for the 
    State supervision of public elementary and secondary schools.
        Teacher means a professional who provides direct and personal 
    services to students for their educational development through 
    classroom teaching.
    
    (Authority: 20 U.S.C. 1071 to 1087-2)
    
    [FR Doc. 94-4257 Filed 2-24-94; 8:45 am]
    BILLING CODE 4000-01-P
    
    
    

Document Information

Published:
02/25/1994
Entry Type:
Uncategorized Document
Action:
Notice of proposed rulemaking.
Document Number:
94-4257
Dates:
Comments must be received on or before March 28, 1994.
Pages:
0-0 (1 pages)
Docket Numbers:
Federal Register: February 25, 1994
CFR: (1)
34 CFR 682.215