Compliance Alert – September 2024
- September 17th, 2024
- in Compliance, Newsletter
Final Rules
National Resource Centers Program and Foreign Language and Area Studies Fellowships Program
These final regulations incorporate several significant related changes to the proposed regulations contained in the NPRM. We also made several minor technical and editorial changes in these final regulations. We describe these changes in more detail in the Analysis of Comments and Changes section below. Below is a brief overview of significant related changes to these final regulations compared to the NPRM.
Federal Agency: Office of Postsecondary Education, Department of Education
Affected Area: Capstone International
Education Department General Administrative Regulations and Related Regulatory Provisions
The last major update to EDGAR was in 2013. Given that EDGAR serves as the foundational set of regulations for the Department, we have reviewed EDGAR, evaluated it for provisions that, over time, have become outdated, unnecessary, or inconsistent with other Department regulations, and identified ways in which EDGAR could be updated, streamlined, and otherwise improved. Specifically, we amend parts 75, 76, 77, 79, and 299 of title 34 of the Code of Federal Regulations.
Federal Agency: Office of Planning, Evaluation and Policy Development, Department of Education
Affected Area: Campus
Prohibition of Sale of Tobacco Products to Persons Younger Than 21 Years of Age
The Food and Drug Administration is issuing a final rule to make conforming changes as required by the Further Consolidated Appropriations Act, 2020 (Appropriations Act), which established a new Federal minimum age of sale for tobacco products. These conforming changes include increasing the minimum age of sale for cigarettes, smokeless tobacco, and covered tobacco products from 18 to 21 years of age; increasing the minimum age for age verification by means of photographic identification for cigarettes, smokeless tobacco, and covered tobacco products from under the age of 27 to under the age of 30; increasing the minimum age of individuals who may be present or permitted to enter facilities that maintain vending machines to sell cigarettes, smokeless tobacco, or covered tobacco products from 18 to 21 years of age; and increasing the minimum age of individuals who may be present or permitted to enter facilities that maintain self-service displays that sell cigarettes or smokeless tobacco from 18 to 21 years of age.
Federal Agency: Food and Drug Administration, HHS
Affected Area: Campus
This rule aims to address and prevent money laundering, terrorist financing, and other illicit finance activity through the investment adviser industry. As detailed in an investment adviser illicit finance risk assessment (Risk Assessment) published concurrently with the release of the IA AML NPRM, Treasury has identified several illicit finance threats involving investment advisers.[2] Investment advisers have served as an entry point into the U.S. financial system and economy for illicit proceeds associated with foreign corruption, fraud, and tax evasion, as well as billions of dollars ultimately controlled by sanctioned entities including Russian oligarchs and their associates. Investment advisers—including those exempt from Securities and Exchange Commission (SEC) registration—and their private funds, particularly venture capital funds, are also being used by foreign states, most notably the People’s Republic of China (PRC) and Russia, to access certain technology and services with long-term national security implications through investments in early-stage companies. Finally, there are numerous examples of investment advisers defrauding their customers and stealing their funds.
Federal Agency: Financial Crimes Enforcement Network (FinCEN), Treasury
Affected Area: ORED
Effective: 1/1/2026
Proposed Rules
Transactions Other Than Contracts, Grants, or Cooperative Agreements for Prototype Projects
DoD is proposing revisions to its regulations on Other Transaction (OT) agreements for prototype projects to implement changes in statutory authority enacted by Congress since the last update in 2004. The Department is proposing changes in: the authority to provide for follow-on production OTs and contracts; special circumstances for award of OTs to small businesses, nontraditional defense contractors, nonprofit research institutions, and consortia; approval requirements for large dollar OTs; the authority to supply prototypes and production items to another contractor as Government furnished items; and applying procurement ethics requirements to covered OT agreements.
Federal Agency: Office of the Under Secretary of Defense for Acquisition and Sustainment (OUSD(A&S)), Department of Defense (DoD)
Affected Area: ORED
Comments Due: 11/4/2024
Timely Certification and Reporting for Veterans Attending Training Programs
Currently, VR&E has no established timeframes for SCOs to initially certify and inform VA of changes made to a Chapter 31 veteran’s rate of pursuit, dates of attendance, and the number of credit or training hours. The lack of an established timeframe contributes to unnecessary delays in the timely processing of monthly subsistence allowance payments to veterans who depend on these funds. Additionally, if a veteran increases, decreases, or terminates enrollment and the certification is not updated in a timely manner, the delay may create an undue hardship for the veteran if he or she is underpaid or overpaid. If a veteran is overpaid, VA must establish a debt against the veteran even though it may have been due to the SCO’s delay in updating the certification. VA is proposing to revise 38 CFR 21.294 to describe what would constitute timely initial certification and timely reporting of changes to rate of pursuit, dates of attendance, and the number of credit or training hours for Chapter 31 veterans. Revised § 21.294(a)(4)(ii) would require SCOs to submit initial certifications to VA within 30 days of the beginning of the school term. See, e.g.,38 CFR 21.4203(d) (reporting requirements under VA’s education program). SCOs would also be required to report changes in rate of pursuit, dates of attendance or the number of credit or training hours within 30 days of when a veteran makes such change. This amendment would help prevent underpayments and overpayments that may otherwise create unnecessary hardship for veterans. A veteran could request waiver of a debt, but such request would not be granted automatically. These changes would result in improved, timelier services to veterans.
Federal Agency: Department of Veteran Affairs
Affected Area: Student Financial Aid, Office of Veteran Affairs
Comments Due: 11/4/2024
This proposed rule would amend the Bureau of Industry and Security’s (BIS) Industrial Base Surveys—Data Collections regulations by establishing reporting requirements for the development of advanced artificial intelligence (AI) models and computing clusters under the Executive order of October 30, 2023, “Safe, Secure, and Trustworthy Development and Use of Artificial Intelligence.”
Federal Agency: Bureau of Industry and Security, Department of Commerce
Affected Area: OIT
Comments Due: 10/11/2024
Notices
The Direct Loan Program promissory notes included in this collection contain information regarding the terms and conditions of the Saving on a Valuable Education (SAVE) repayment plan. However, implementation of the SAVE repayment plan is currently enjoined. The final versions of the promissory notes will reflect the law when it is finalized.
Federal Agency: Federal Student Aid (FSA), Department of Education (ED)
Affected Area: Student Financial Aid
Comments Due: 9/19/2024
The Department of Education (the Department) is requesting an extension of the currently approved OMB information collection 1845-0093, Federal Family Education Loan (FFEL) Program Servicemembers Civil Relief Act (SCRA) based on a decrease in the number of servicemembers accessing the benefit. The regulations require the FFEL loan holder to match its database against the Department of Defense (DOD) Defense Manpower Data Center (DMDC) or other official DOD database and automatically apply the interest rate limitation, as appropriate, to borrowers under the SCRA. There has been no change in the statute or in the regulations at 34 CFR 682.208(j). There is no form tied to this collection.
Federal Agency: Federal Student Aid (FSA), Department of Education (ED)
Affected Area: Student Financial Aid, Office of Veterans
Comments Due: 10/21/2024
Commerce in Explosives; 2024 Annual List of Explosive Materials
Pursuant to 18 U.S.C. 841(d) and 27 CFR 555.23, the Department of Justice must publish and revise at least annually in the Federal Register a list of explosives determined to be within the coverage of 18 U.S.C. 841 et seq. The list covers not only explosives, but also blasting agents and detonators, all of which are defined as “explosive materials” in 18 U.S.C. 841(c).
Federal Agency: Department of Justice, Bureau of Alcohol, Firearms, and Explosives
Affected Area: UAPD, EHS
Agency Information Collection Activity under OMB Review: GI Bill® School Feedback Tool
Executive Order 13607, Establishing Principles of Excellence, which is now identified as the GI Bill School Feedback Tool is used for Educational Institutions serving service members, Veterans, spouses, and other family members, requires the establishment of a centralized complaint system for students receiving federal military and Veteran educational benefits. The purpose of the complaint system is to provide a standardized method to submit a complaint against an educational institution alleging fraudulent and unduly aggressive recruiting techniques, misrepresentation, payment of incentive compensation, failure to meet state authorization requirements, or failure to adhere to the Principles of Excellence as outlined in the Executive Order. The VA’s Principles of Excellence GI Bill® School Feedback Tool leverages the Salesforce platform to collect and manage complaints. The complainants access the complaint system through the GI Bill website and eBenefits portal. Veterans, family members, or other members of the public are able to open links at the VA website location and enter the requested information. Complainants are offered the opportunity to review the information in their complaint prior to clicking on the submit button. Once a complaint is submitted, the complainant receives an email verifying that the complaint was received.
Federal Agency: Veterans Benefits Administration, Department of Veterans Affairs
Affected Area: Student Financial Aid, Office of Veterans
Comments Due: 9/21/2024
This notice announces that the Transportation Security Administration (TSA) has forwarded the Information Collection Request (ICR), Office of Management and Budget (OMB) control number 1652-0059, abstracted below to OMB for review and approval of a revision of the currently approved collection under the Paperwork Reduction Act (PRA). The ICR describes the nature of the information collection and its expected burden. The collection involves the submission of biographic and biometric information by individuals seeking to enroll in the TSA PreCheck® (also known as TSA Pre✓®) Application Program, as well as optional surveys related to customer service and enrollment processes.
Federal Agency: Transportation Security Administration, DHS
Affected Area: Campus
Comments Due: 9/23/2024
This notice announces the fixed interest rates for Direct Subsidized Loans, Direct Unsubsidized Loans, and Direct PLUS Loans with first disbursement dates on or after July 1, 2024, and before July 1, 2025, and provides interest rate information for other fixed-rate Direct Loans. Interest rate information for variable-rate Direct Loans is announced in a separate Federal Register notice.
Federal Agency: Federal Student Aid, Department of Education
Affected Area: Student Financial Aid
The Chief Operating Officer for Federal Student Aid announces the interest rates for loans made under the Federal Family Education Loan (FFEL) Program, Assistance Listing Number 84.032, that have variable interest rates. The rates announced in this notice are in effect for the period July 1, 2024, through June 30, 2025.
Federal Agency: Federal Student Aid, Department of Education
Affected Area: Student Financial Aid
The Chief Operating Officer for Federal Student Aid announces the interest rates for Federal Direct Stafford/Ford Loans (Direct Subsidized Loans), Federal Direct Unsubsidized Stafford/Ford Loans (Direct Unsubsidized Loans), and Federal Direct PLUS Loans (Direct PLUS Loan), Assistance Listing Number 84.268, with first disbursement dates before July 1, 2006, and for Federal Direct Consolidation Loans (Direct Consolidation Loans) for which the application was received before February 1, 1999. The rates announced in this notice are in effect for the period July 1, 2024, through June 30, 2025.
Federal Agency: Federal Student Aid, Department of Education
Affected Area: Student Financial Aid
The Secretary announces the annual updates to the tables used in the statutory Federal Need Analysis Methodology (Need Analysis) that determines a student’s Student Aid Index (SAI) for award year (AY) 2025-26 for student financial aid programs, Assistance Listing Numbers (ALN) 84.007, 84.033, 84.063, 84.268, and 84.379. The intent of this notice is to alert the financial aid community and the broader public to these required annual updates used in the determination of student aid eligibility.
Federal Agency: Federal Student Aid, Department of Education
Affected Area: Student Financial Aid
If the Secretary selects an applicant for verification, the applicant’s Institutional Student Information Record (ISIR) includes flags that indicate (1) that the applicant has been selected by the Secretary for verification and (2) the Verification Tracking Group (VTG) in which the applicant has been placed. The VTG indicates which FAFSA information needs to be verified for the applicant and, if appropriate, for the applicant’s parent(s) or spouse. The FAFSA Submission Summary indicates that the applicant’s FAFSA information has been selected for verification and direct the applicant to contact the institution for further instructions for completing the verification process. In accordance with the Fostering Undergraduate Talent by Unlocking Resources for Education (FUTURE) Act, much of the applicant’s tax return information, including information from their spouse and/or parents, will come directly from the IRS and will not be viewable by the student and other contributors. Such information that is transferred and not edited will essentially be verified and need no further verification. However, for instances where income and tax information cannot be obtained directly from the IRS, the applicant will have to manually enter the necessary information into the FAFSA, and that manual entry may be subject to verification.
Federal Agency: Federal Student Aid, Department of Education
Affected Area: Student Financial Aid
Items of Interest
Strategies for Re-Enrolling Stop-Outs
The Institute for Higher Education Policy provides guidance on how institutions can help learners who left college complete their credential.
Columbia University Subpoenaed for Records in Antisemitism Investigation
This is the second time in the committee’s history that the panel has subpoenaed a college or university—and the first was relatively recent: Harvard University was subpoenaed in February as part of a similar investigation. Experts warned that the Harvard order should put other institutions on notice as congressional Republicans ratchet up their scrutiny of higher education. The subpoenas, and the investigations they are part of, concern higher education leaders who say they could set a new precedent for partisan oversight of colleges, infringe on institutional autonomy and undermine academic freedom.
Struggling to Create AI Policies? Ask Your Students
A professor at Florida International University tasked her students with devising an ethical guide to using AI in their classes—and found them to be stricter than she would have been.
UC Berkeley Launches AI-Focused Law Degree
The University of California, Berkeley, Law School is now offering an artificial intelligence–focused law degree in response to a growing demand for AI law experts. The Master of Laws degree track—one of the nation’s first, if not the first—will teach students about AI ethics, current and future efforts to regulate AI, and the fundamentals of AI technology. It will include an AI Law and Regulation certificate focused on data privacy, intellectual property rights and licensing.
In Bid to Deter Misconduct, U.S. Releases New Data on Financial Aid Enforcement
The Education Department has issued $61.7 million in fines and cut off aid to 35 colleges for violations since 2021. Some critics say it hasn’t gone far enough in holding rule breakers accountable; others say the feds have a “vendetta” against career colleges.
UT System Bans Statements on Political and Social Issues
The University of Texas system and its institutions are no longer permitted to “adopt positions based on political or social passions or pressures,” according to a new rule approved by the Board of Regents on Thursday, The Austin American-Statesman reported.
The U.S. Department of Education is awarding more than $40 million dollars in federal grants to improve college completion rates for “underserved students.”
Universities Hit Back Against Proposed Online Attendance Policy
Proposed federal regulations have institutions and higher ed groups worried about time and financial burdens.
Colleges Must Accommodate Pregnant Students Under New Title IX
Pregnancy was always implicitly protected by Title IX. But Biden’s new rules formalize the rights of pregnant and parenting students, making higher ed more accessible.
Academic Publishers Threatened By Open-Access Expansion
Critics say a directive to make federally funded research immediately free to the public could violate authors’ copyrights. It could also disrupt the $19 billion academic publishing industry.
Can AI Be Used to Cheat on Multiple-Choice Exams?
A Florida State professor found a way to catch AI cheating on multiple-choice tests. He also found that ChatGPT got a lot of “easy” questions wrong.
Case Shows Mid-Managers Can Be Liable Under Fair Labor Standards Act
Analyzing the recent case of Spears v. Patel from the Court of Appeals for the Eleventh Circuit, Ong discusses how the Act holds “employers” liable for minimum wage and overtime violations. Under the Act, the term “employers” is broadly construed to include “any person acting directly or indirectly in the interest of an employer in relation to an employee.”
Cass Sunstein Wants to Help Universities Navigate Free Speech Conflicts
The legal scholar presents a wide range of speech-related scenarios that university administrators may have to navigate this fall—and in perpetuity.
How Title VI Is Tripping Up Colleges
The Office for Civil Rights has resolved six investigations into how colleges responded to reports of antisemitism. The findings show how those colleges fell short of federal law and hold lessons for the rest of higher ed.
You Can’t Outsource Educational Leadership
The inability of students to engage in well-informed and respectful discussion of contentious political issues is not some surface-level blemish to be treated by topical lotions administered by auxiliary para-educators. It cuts to the core of the entire higher education enterprise. To address it effectively, administrators need first to diagnose how and why the institutions they lead are failing to deliver on their educational mission and then to develop responses that are built into every student’s core learning experience. In short, the problem calls for visionary educational leadership by presidents, deans and faculty. And that cannot be outsourced.
Penn Creates New Title VI Center. Will Other Colleges Follow?
Opening a center to handle shared ancestry complaints such as those alleging antisemitism is the latest signal that colleges are turning to their Title IX playbooks to comply with Title VI.
Penn Embraces Institutional Neutrality
The University of Pennsylvania announced Tuesday it will embrace a policy of institutional neutrality going forward, refraining from issuing public statements “in response to local and world events except for those which have direct and significant bearing on University functions.”
Senators Urge Education Department to Extend Gainful Reporting Deadline
A bipartisan group of 20 senators has asked the Education Department to give colleges more time to report program-level information that’s currently due at the end of the month.
The reporting requirements, which include data on the total cost of attendance and the amount of private education loans disbursed to students, are part of the department’s new gainful-employment rule aimed at providing prospective students with more information about whether college programs pay off.
Federal Anti-Hazing Bill Moves One Step Closer to Becoming Law
After years of stalled attempts to pass federal anti-hazing legislation, a bill that would require colleges and universities to report such incidents cleared a key committee Wednesday, paving the way for a vote on the House floor.
What College Leaders Want From Harris and Trump
The American Council on Education, the chief lobbying group for the higher education industry, wants the next president to repeal the tax on wealthy universities’ endowments and work to increase the Pell Grant to $13,000 from $7,395 as a way of making college more affordable, among other policies.
Policies
|