[Federal Register Volume 61, Number 169 (Thursday, August 29, 1996)]
[Rules and Regulations]
[Pages 45753-45754]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-21665]
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LEGAL SERVICES CORPORATION
45 CFR Part 1627
Subgrants and Dues
AGENCY: Legal Services Corporation.
ACTION: Interim rule with request for comments.
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SUMMARY: This interim rule amends the fees and dues provisions of the
Legal Services Corporation's (``Corporation'' or ``LSC'') regulation
concerning subgrants, fees and dues. The revisions are intended to
implement a restriction contained in the Corporation's FY 1996
appropriations act which prohibits the use of LSC funds to pay
membership dues to any private or nonprofit organization. Although this
rule is effective upon publication, the Corporation also solicits
public comment in anticipation of adoption of a final rule at a later
time. The provisions of the rule regarding subgrants have not been
revised.
DATES: This interim rule is effective August 29, 1996. Comments must be
submitted on or before October 28, 1996.
ADDRESSES: Comments should be submitted to the Office of the General
Counsel, Legal Services Corporation, 750 First Street NE., 11th Floor,
Washington, DC 20002-4250.
FOR FURTHER INFORMATION CONTACT: Victor M. Fortuno, General Counsel,
(202) 336-8910.
SUPPLEMENTARY INFORMATION: On May 19, 1996, the Operations and
Regulations Committee (``Committee'') of the LSC Board of Directors
(``Board'') requested the LSC staff to prepare an interim rule to
implement Sec. 505, a restriction in the Corporation's FY1996
appropriations act, Pub. L. 104-134, 110 Stat. 1321 (1996), which
prohibits use of LSC funds to pay dues to any private or nonprofit
organization. The Committee held public hearings on July 9 and 19, and
the Board adopted this interim rule on July 20 for publication in the
Federal Register. The Committee recommended and the Board agreed to
publish this rule as an interim rule. An interim rule is necessary in
order to provide prompt and critically necessary guidance to LSC
recipients on legislation which is already effective and carries strong
penalties for noncompliance. Because of the great need for guidance on
how to comply with substantially revised legislative requirements,
prior notice and public comment are impracticable, unnecessary, and
contrary to the public interest. See 5 U.S.C. 553(b)(3)(B) and
553(d)(3). Accordingly, this rule is effective upon publication.
However, the Corporation also solicits public comment on the
interim rule for review and consideration by the Committee. After
receipt of public comment, the Committee intends to hold public
hearings to discuss the written comments and to hear oral comments. It
is anticipated that a final rule will be issued that will supersede
this interim rule.
This interim rule revises only provisions relating to ``fees and
dues'': Secs. 1627.2, 1627.4, 1627.7, and 1627.8. In Sec. 1627.2, the
definition of ``fees and dues'' has been replaced by a definition of
``dues.'' Section 1627.4 has been completely revised. Section 1627.7
has been deleted, because it duplicates 45 CFR Sec. 1612.9. Section
1627.8 of the prior rule has been renumbered as Sec. 1627.7, and a new
Sec. 1627.8 is added regarding policies, procedures and recordkeeping.
Also, the title of this rule has been revised to ``Subgrants and
dues.''
Generally, the revisions prohibit any use of LSC funds to pay
membership dues to any private or nonprofit organization. The prior
provisions allowed recipients to pay such dues, subject to certain
limitations as to type of organization and amount of dues. Payment of
dues with non-LSC funds continues to be permitted.
Finally, Secs. 1627.1, 1627.3, 1627.5 and 1627.6 are not revised or
reprinted here, because they deal exclusively with subgrants.
A section-by-section discussion of this interim rule is provided
below.
Section 1627.2 Definitions
The definition of ``Fees and dues'' in Sec. 1627.2(c) is revised
and retitled ``Dues.'' Only ``dues'' is defined. ``Fees'' is not
separately defined, because the statutory provision in Sec. 505 of the
Corporation's appropriations act refers only to ``dues'' and there is
no statutory restriction on ``fees.'' Moreover, even though the prior
rule defined ``fees and dues'' together, the definition only related to
``dues.'' Consequently, although the definition in the revised rule is
basically the same as in the prior rule, it omits the term ``fees.''
Dues are defined as payments for membership or to acquire voting or
participatory rights in an organization. This definition does not
include payments for training sessions, goods, research materials and
other such services. LSC funds may be expended for such services,
provided the expenditures are made in accordance with applicable
regulations, including 45 CFR part 1630.
Section 1627.4 Dues
This section is entirely revised to prohibit any use of LSC funds
for payment of dues to private or nonprofit organizations. This
prohibition includes payment of dues for employees and volunteer
attorneys to voluntary bar associations that are private or nonprofit
organizations.
The prohibition does not extend to the payment of dues to
governmental bodies. Thus, payment of dues to a State Supreme Court or
to a bar association acting as an administrative arm of the court or in
some other governmental capacity in collecting dues that are a
requirement for an attorney to practice in that State is deemed to be
payment
[[Page 45754]]
of dues to a governmental body, and is not prohibited by this part.
Finally, this section expressly states that these new limitations
on payment of dues apply only to the use of LSC funds.
Several provisions in the prior rule have been deleted because they
are inconsistent with the new statutory prohibition. Thus, all
references to the circumstances under which recipients could use LSC
funds to pay for dues, and all references to procedures required of
recipients before they could expend funds for certain payments of dues,
are no longer applicable, because the new legislation prohibits the use
of any LSC funds to pay dues. Thus, the provisions are no longer
relevant.
Section 1627.7 Tax Sheltered Annuities, Retirement Accounts and
Pensions
Section 1627.8 of the prior rule is now renumbered as Sec. 1627.7.
Section 1627.8 Recipient Policies, Procedures and Recordkeeping
This new section requires recipients to establish policies and
procedures and to maintain records to document compliance with the
requirements of this part.
List of subjects in 45 CFR part 1627
Grant programs--law, Legal services.
For reasons set forth in the preamble, 45 CFR part 1627 is amended
as follows:
PART 1627--SUBGRANTS AND DUES
1. The heading of part 1627 is revised to read as set forth above.
2. The authority citation for part 1627 is revised to read as
follows:
Authority: Pub. L. 104-134, 110 Stat. 1321 42 U.S.C.
2996e(b)(1), 2996f(a), and 2996g(e).
3. Section 1627.2(c) is revised to read as follows:
Sec. 1627.2 Definitions.
* * * * *
(c) Dues as used in this part means payments to an organization on
behalf of a program or individual to be a member thereof, or to acquire
voting or participatory rights therein.
4. Section 1627.4 is revised to read as follows:
Sec. 1627.4 Dues.
(a) Corporation funds may not be used to pay dues to any private or
nonprofit organization, whether on behalf of a recipient or an
individual.
(b) Paragraph (a) of this section does not apply to the payment of
dues mandated as a requirement of practice by a governmental
organization or to the payment of dues from non-LSC funds.
5. Section 1627.7 is revised to read as follows:
Sec. 1627.7 Tax sheltered annuities, retirement accounts and pensions.
No provision contained in this part shall be construed to affect
any payment by a recipient on behalf of its employees for the purpose
of contributing to or funding a tax sheltered annuity, retirement
account, or pension fund.
6. Section 1627.8 is revised to read as follows:
Sec. 1627.8 Recipient policies, procedures and recordkeeping.
Each recipient shall adopt written policies and procedures to guide
its staff in complying with this part and shall maintain records
sufficient to document the recipient's compliance with this part.
Dated: August 20, 1996.
Suzanne B. Glasow,
Senior Counsel for Operations & Regulations.
[FR Doc. 96-21665 Filed 8-28-96; 8:45 am]
BILLING CODE 7050-01-P
