31709
Federal Register
/Vol. 69, No. 108/Friday, June 4, 2004/Rules and Regulations
independence and could continue tocarry out its mission, including thedefinition, practice, and expression of its religious beliefs. Among other things,a faith-based organization could usespace in its facilities to provideDepartment-funded services withoutremoving religious art, icons, scriptures,or other religious symbols. In addition,a Department-funded religiousorganization could retain religious termsin its organization
’
s name, select its board members and otherwise governitself on a religious basis, and includereligious references in its organization
’
smission statements and other governingdocuments.4.
Nondiscrimination in providing assistance.
The NPRM provided that anorganization that received a grant fromthe Department or that received asubgrant from a State under a State-administered program of theDepartment would not be allowed todiscriminate against a beneficiary orprospective beneficiary of that programon the basis of religion or religious belief.5.
Removal of prohibition on use of grants and subgrants to pay for anactivity of a school or department of divinity.
The proposed regulationsclarified that the most qualifiedapplicants will receive funding underthe Department
’
s programs, and that thereligious character or affiliation of theprivate organizations that apply will not be taken into account. For that reason,we proposed to remove the regulationprohibiting grantees and subgranteesfrom using their grants and subgrants topay for an activity of a school ordepartment of divinity.6.
Technical amendment relating tothe prohibition on use of grants to pay  for equipment or supplies to be used for religious worship, instruction, or  proselytization.
In the NPRM, weproposed a technical amendment to theDepartment
’
s regulations, clarifying thatgrantees cannot use their grants to payfor equipment or supplies used forreligious worship, instruction, orproselytization.7.
Removal of prohibition on use of grants and subgrants to pay for construction, remodeling, repair,operation, or maintenance of any  facility or part of a facility to be used  for religious worship, instruction, or  proselytization.
We proposed to remove
§§
75.532(a)(3) and 76.532(a)(3), whichprohibit the use of Department funds topay for construction, remodeling, repair,operation, or maintenance of any privateeducational facility (or part of a privateeducational facility). This regulation isnot necessary because there is nostatutory authority for this use of Department funds. Accordingly, theDepartment has no programs that fundsuch capital improvements.8.
Eligibility of faith-based organizations to contract with or otherwise receive assistance fromgrantees and subgrantees, including States, on the same basis as other  private organizations, with respect tocontracts or assistance for which suchorganizations are eligible.
The NPRMproposed to clarify that faith-basedorganizations are eligible to contractwith or otherwise receive assistancefrom grantees and subgrantees,including States, on the same basis asother private organizations, with respectto contracts or assistance for which suchorganizations are eligible. These faith- based organizations are subject to thesame limitations to which grantees andsubgrantees are subject regarding theuse of funds for inherently religiousactivities, unless the organization isselected as a result of the genuine andindependent private choices of individual beneficiaries of the programand provided the organization otherwisesatisfies the requirements of theprogram.These final regulations containseveral significant changes from theNPRM. We fully explain these changesin the appendix at the end of these finalregulations.
Analysis of Comments and Changes
In response to the Secretary
’
sinvitation in the NPRM, 12 partiessubmitted a total of 14 comments on theproposed regulations. An analysis of thecomments and of the changes in theregulations since publication of theNPRM is published as an appendix atthe end of these final regulations.We group major issues according tosubject. Generally, we do not addresstechnical and other minor changes.
Executive Order 12866—RegulatoryPlanning and Review
The Office of Management and Budget(OMB) reviewed this final rule underExecutive Order 12866,
Regulatory Planning and Review.
OMB determinedthat the rule is a
‘‘
significant regulatoryaction,
’’
as defined in section 3(f) of theOrder (although not an economicallysignificant regulatory action under theOrder).
Unfunded Mandates Reform Act
Title II of the Unfunded MandatesReform Act of 1995 (2 U.S.C. 1531
–
1538) establishes requirements forFederal agencies to assess the effects of their regulatory actions on State, local,and tribal governments, and on theprivate sector. This final rule does notimpose any Federal mandates on anyState, local, or tribal governments, or theprivate sector, within the meaning of theUnfunded Mandates Reform Act of 1995.
Executive Order 13132—Federalism
Executive Order 13132 (entitled
‘‘
Federalism
’’
) prohibits an agency frompublishing any rule that has federalismimplications if the rule either imposessubstantial direct compliance costs onState and local governments and is notrequired by statute, or the rule preemptsState law, unless the agency meets theconsultation and funding requirementsof section 6 of the Executive Order.
Regulatory Flexibility Act
The Secretary, in accordance with theRegulatory Flexibility Act (5 U.S.C.605(b)), has reviewed and approved thisfinal rule and in so doing certifies thatthe rule will not have a significanteconomic impact on a substantialnumber of small entities. The final rulewill not impose any new costs, ormodify existing costs, applicable toDepartment grantees and subgrantees.Rather, the purpose of the rule is toremove policy prohibitions thatcurrently restrict the equal participationof religious or religiously affiliatedorganizations (large and small) in theDepartment
’
s programs.
Paperwork Reduction Act of 1995
These regulations do not contain anyinformation collection requirements.
Intergovernmental Review
These final regulations affect directgrant programs that are subject toExecutive Order 12372 and theregulations in 34 CFR part 79. Theobjective of the Executive Order is tofoster an intergovernmental partnershipand to promote federalism by relying onprocesses developed by State and localgovernments for coordination andreview of proposed Federal financialassistance.In accordance with the order, weintend this document to provide earlynotification of our specific plans andactions for these programs.
Assessment of Educational Impact
In the NPRM we requested commentson whether the proposed regulationswould require transmission of information that any other agency orauthority of the United States gathers ormakes available.Based on the response to the NPRMand on our review, we have determinedthat these final regulations do notrequire transmission of information thatany other agency or authority of the
VerDate jul<14>2003 17:47 Jun 03, 2004Jkt 203001PO 00000Frm 00003Fmt 4701Sfmt 4700E:\FR\FM\04JNR3.SGM04JNR3
Leave a Comment