UPDATE MARCH 20—EXTENSION OF COMMENT PERIOD
**Due to the COVID-19 pandemic, the comment period closing March 26 will be extended to May 15. We may extend it further if needed.
This proposed rulemaking would revise LSC regulations addressing the use of non-LSC funds by LSC recipients and the requirement that recipients maintain program integrity with respect to other entities that engage in LSC-restricted activities (Part 1610), and also providing cost standards for LSC grants and permiting LSC to question costs when a recipient uses non-LSC funds in violation of LSC rules (Part 1630). LSC proposes technical and stylistic updates to both rules without any substantive changes.
FNPRM—Further Notice of Proposed Rulemaking—Proposed Substantive Changes to Part 1630
- Further Notice of Proposed Rulemaking for 45 C.F.R. Parts 1610 and 1630—Use of Non-LSC Funds, Transfers of LSC Funds, Program Integrity; Cost Standards and Procedures, 85 Fed. Reg 7,518 (Feb. 10, 2020).
This notice identifies for public comment one substantive change to LSC's regulation regarding cost standards at 45 C.F.R. part 1630. Currently, § 1630.16 authorizes disallowing costs from LSC funds in an amount equivilant to any amount of non-LSC funds used in violation of the restrictions on the use of non-LSC funds, with one ommission. The rule includes the application of the LSC statutory restrictions to public, private, and tribal funds, but it omits the restrictions in the LSC Act applicable to unauthorized uses of public funds. Thus, in this one situation, if LSC finds that a violation has occurred, then LSC has all available remdial options except disallowed costs. By contrast, all of the statutory restrictions on the use of non-LSC funds appear in 45 C.F.R. Part 1610, both as is and as proposed in the August 2020 NPRM. The FNPRM provides background on this issue and seeks public comment.
Comments that propose keeping the gap between part 1610 and § 1630.16 must:
- Identify a valid purpose for the gap consistent with the statutory restrictions;
- Explain why, for the LSC Act Restrictions, § 1630.16 should not apply to unauthorized uses of public funds that violate the LSC Act while continuing to apply to unauthorized uses of tribal funds that violate the LSC Act;
- Explain why § 1630.16 should not apply to unauthorized uses of public funds that violate the LSC Act while continuing to apply to any uses of public funds that violate the restrictions in the LSC appropriation.
Comments that otherwise oppose the proposed cross reference to part 1610 in § 1630.16(a) must provide a justification for any distinction between the rules for the use on non-LSC funds in part 1610 and in § 1630.16, including justifying the distinction consistent with the statutory restrictions and justifying any distinctions in § 1630.16 among the different types of restrictions on non-LSC funds set out in part 1610.
Comments Due By May 15, 2020, unless further extended.
You may submit comments by any of the following methods:
- Federal Rulemaking Portal: Follow the instructions for submitting comments.
- Email: firstname.lastname@example.org. Include “Part 1630 Rulemaking” in the subject line of the message.
- Fax: (202) 337-6519.
- Mail: Mark Freedman, Senior Associate General Counsel, Legal Services Corporation, 3333 K Street NW, Washington, DC 20007, ATTN: Part 1630 Rulemaking.
- Hand Delivery/Courier: Mark Freedman, Senior Associate General Counsel, Legal Services Corporation, 3333 K Street NW, Washington, DC 20007, ATTN: Part 1630 Rulemaking.
LSC prefers electronic submissions via email with attachments in Acrobat PDF format. LSC will not consider written comments sent to any other address or received after the end of the comment period.
NPRM—Notice of Proposed Rulemaking—Proposed Rule
- Notice of Proposed Rulemaking for 45 C.F.R. Parts 1610 and 1630—Use of Non-LSC Funds, Transfers of LSC Funds, Program Integrity; Cost Standards and Procedures, 84 Fed. Reg 39,787 (Aug. 12, 2019).
- Redline showing changes proposed for Parts 1610 and 1630
The comment period closed on October 11, 2019. Two comments were submitted before the deadline and two after the deadline.
- National Legal Aid and Defender Association Comments on NPRM for Parts 1610 and 1630 (Oct. 11, 2019)
- Northwest Justice Project Comments on NPRM for Parts 1610 and 1630 (Oct. 11, 2019)
- American Bar Association Standing Committee on Legal Aid and Indigent Defendants Comments on NPRM for Parts 1610 and 1630 (Nov. 20, 2019)
- National Association of IOLTA Programs Comments on NPRM for Parts 1610 and 1630 (Jan. 10, 2020)
For further information, please contact Mark Freedman, Senior Associate General Counsel, Legal Services Corporation, 3333 K Street NW, Washington, DC 20007; (202) 295-1623 (phone), (202) 337-6519 (fax), or email@example.com.