Session 39 Uncover the Mysteries of How a Law Becomes Operational Angela Smith Kevin Campbell Bill

2 What’s Important? How Does a Bill Become a Law? Laws VS. Regulations What's the Federal Register? What's the Blue Book? What is meant by “Guidance"? Finding Answers Using the Federal Student Aid Handbook and Dear Colleague Letters

3 Title IV Federal Student Aid Programs Pell Grants Campus Based Programs –FSEOG, FWS, Federal Perkins Loans FFELP/FDLP ACG/SMART Other

4 Who’s Responsible? Congress –Creation and modification of programs –Need analysis formula –Maximum grant and loan amounts –Amount of funding –Executive Branch –Cash management –Audit criteria –Enforcement (L, S & T) –FAFSA design –Reporting requirements

5 Legislation VS. Regulation Legislation –Congress Adopts with presidential signature or after overriding a veto –Amends the U.S. Code -- the statute (e.g., Higher Education Act) –Public Laws (108-XX) Senate Majority Leader Bill Frist (R, TN) Speaker of the House Dennis Hastert (R, IL)

6 Leadership in the New Congress Senator Harry Reid, D. Nevada Senate Majority Leader Representative Nancy Pelosi, D. California Speaker of the House of Representatives

7 How the Law is Numbered P.L (10/7/98) reauthorized the HEA Title IV, Part G - General Provisions Subpart (Arabic numerals when used) Section Student Eligibility Subsection (c) - Satisfactory Progress –Paragraph (1) –Subparagraph (A) –Division - lower case Roman - (i), (ii), (iii) –Clause - upper case Roman - (I), (II), (III) Example: Sec. 484(c)(1)(A)

8 Legislative Process Authorization Legislation: –Introduced by a Representative or Senator to amend or create a Federal statute Appropriations Legislation: –Sets annual funding levels for Federal programs

9 Legislative Process Applied to HEA Authorizing Legislation –Established HEA of 1965 as amended –Reauthorization changes/renews authorizing legislation approximately every 5 years Appropriating Legislation –Annually funds programs –Budget bills

10 What is Reauthorization? Reauthorization of the Higher Education Act of 1965, as Amended –Originally enacted as part of President Johnson’s “Great Society” programs –Authorizations “sunset” and must be renewed –Authorizes virtually all Federal Higher Education Programs

11 Why Reauthorization? Reauthorization Provides the Opportunity for Thoughtful Congressional Review –Public hearings –More time to consider ideas –Ability to review fundamental issues Access Choice Eligibility Subsidies Accountability

12 Current Reauthorization Process Underway Since Late 2002 Many Issues Incorporated into Higher Education Reconciliation Act (HERA) –Loan program extended –Loan limits increased –Origination fees reduced –Graduate students may borrow under the PLUS program Other Issues Still Unresolved

13 Hand-off to the Executive Branch Presidential Signature Required on All Changes to Statute –Date of enactment is date President signs a bill into law –President becomes an active player in shaping final bill

14 Hand-off to the Executive Branch Executive Branch Must Execute and Enforce Laws –Statutory language may be vague –Congress may direct that regulations be written or may prohibit regulation –Regulations are the primary vehicles that executive branch agencies use to interpret and enforce statutes –Sub-Regulatory guidance includes Dear Partner Letters, forms, Audit Guides Secretary of Education Margaret Spellings

15 Legislation VS. Regulation Regulations –Promulgated by appropriate Federal agency U.S. Department of Education for Higher Education Programs Reviewed by Office of Management and Budget (OMB) –Interprets and adds detail to statute –Amends Code of Federal Regulations (C.F.R.)

16 Regulatory Process Negotiated Rulemaking (Neg-Reg) –Mandated by the Higher Education Act (HEA) –All rules implementing changes to the Higher Education Act, and revisions to regulations, are subject to this process –Secretary consults with the “community”

17 Regulatory Process New/amended regulations initially published in the Federal Register –Notice of Proposed Rulemaking (NPRM) Comment periods 30, 45, 60, or 120 days –Final Rules Effective date 45-days following publication or Later date published in Federal Register –Notices Regulations compiled once a year

18 Regulatory Process: Master Calendar Rules must be published by the preceding November 1 to be effective for an academic year –Example: rules published by November 1, 2006 will be effective on July 1, 2007 for academic year –Secretary may permit, but not require, earlier implementation

19 Title IV Regulations: Federal Register The official daily compilation of federal regulations and notices prepared by the NARA; published by GPO Available on online or in hardcopy

20 Title IV Regulations: Code of Federal Regulations Codification of the regulations Divided into 50 titles; Title 34 governs federal financial aid Updated once each calendar year Available online or in hardcopy

21 How Regulations Are Numbered Title - 34 Part –numbers 600 thru 694 Subpart – numbers following the decimal point Section – small letter, e.g. (a) Explanatory Subsections –(1)(i)(A) Example: the Standards of Administrative Capability Regulatory Cite is 34 CFR

22 Guidance vs. Laws and/or Regulations Guidance is information that provides direction or advice as to a decision or course of action Guidance, as related to the Title IV programs, is –Issued by ED –Helps financial aid administrators interpret laws/regs –Administered in several different forms

23 Title IV Guidance: Federal Student Aid Handbook Primary resource financial aid administrators Provides “plain language” guidance of laws and regulations Published annually Available online or in hardcopy

24 Title IV Guidance: The Blue Book Provides guidance to those responsible for managing Title IV FSA program funds (e.g. Business Office, Comptroller’s Office, Treasurer, etc.) Available online or in hardcopy

25 Title IV Guidance: Dear Colleague/Partner Letters Issued by ED to provide additional policy/guidance –Q&A’s –Technical information –Introduce new rules –Explain rules in existence –Explain policies

26 Title IV Guidance: Dear Colleague/Partner Letters, con’t. ANN:Training Announcements CB:Campus-based Programs Letters GEN:General Distribution Letters P:Pell Grant Program DLB:Direct Loan Bulletins

27 Title IV Guidance: Dear Colleague/Partner Letters, con’t. How DCLs/DPLs are numbered example: –CB-06-11: Eleventh Campus-Based DCL issued in 2006 Recent DCLs/DPLs – CB-06-13: 06/07 Supplemental Campus-Based Awards –ANN-06-10: HERA Workshops –GEN-06-15: National SMART Grant - Revised List of Eligible Majors

28 Title IV Guidance: Electronic Announcements Less formal bulletins, memos and letters from Senior FSA staff to assist schools Provide updates, guidance, reminders, notices Delivered electronically –Sent to SAIG mailbox –Listed on IFAP by date

29 Where can I find this information? IFAP –ifap.ed.gov FAP Portal – fsa4schools.ed.gov

30 Federal Student Aid (FSA) Handbook

31 Order hardcopies of Handbooks, Blue Books, CFRs and other items

32 What’s Involved? - Review The Law – Higher Education Act of 1965, as amended –Created by Congress Regulations – implement the Law –Created by Department of Education (ED) and others Dear Partner/Colleague Letters –Issued by ED to provide additional policy/guidance Electronic Announcements –Less formal information from ED to assist schools

33 Legislation and Regulation Now You’re An Expert!!!

34 We appreciate your feedback and comments. We can be reached at: Name: Kevin Campbell Phone: Fax: Name: Angela Smith Phone: Fax: