Mechanics of the Federal Process and Understanding the Legislative Process

LEGISLATIVE RELATIONS COMMITTEE

Understanding the Legislative Process

MECHANISMS OF FEDERAL FINANCIAL AID

Ø  Statutes are the written laws passed by Congress (The House and Senate) governing the financial aid industry. Statutes governing the financial aid industry are:

ü The Higher Education Act of 1965

ü The Department of Education Organization Act

ü The Privacy Act

ü The Freedom of Information Act

ü Others

Ø  Regulations are the equivalent of an operating or implementation manual for a part of a statute (written law).  A regulation gives those subject to its requirements more detailed instructions regarding activities addressed by the statute (written law). Code of Federal Regulations our industry operates under are:

ü Code of Federal Regulations-Chapter 34 (CFR 34)

§  Part 86-Drug-Free Schools

§  Part 99-Family Education Rights and Privacy-FERPA

§  Part 600-Institutional Eligibility

§  Part 602-Accrediting Agency

§  Part 603-State Agencies

§  Part 668-General Provisions

§  Part 673-General Provisions-Campus Based Programs

§  Part 674-Federal Perkins Loan

§  Part 675-Federal Work-Study

§  Part 676-Federal SEOG

§  Part 682-FFEL

§  Part 685-Federal Direct Loan

§  Part 690-Federal Pell Grant

§  Part 692-LEAP/Special LEAP (SSIG)

§  Part 692-GEAR UP (NEISPP)

Ø  Legislative Process is the process by which BILLS are considered and laws enacted.  Laws begin as ideas or BILLS sponsored by members of Congress, the Administration or others.

ü  Authorizing Committees request proposals, hold hearings, draft proposed legislation, debate the proposals and then submit the approved BILL to the respective House.

ü  Both the Full House and Senate separately debate the BILL and then pass their version of the BILL and appoint a Conference Committee to resolve disagreements about a particular BILL.

ü  The Conference Committee is formed to work out the differences between similar BILLS in both houses.  The Conference Committee operates after the House and Senate have passed different versions of a BILL. Conference committees exist to draft a compromise BILL that both houses can accept. Both houses of Congress must eventually pass the identical legislation for the BILL to become law.      

ü  The Full House and Senate debate the proposed law and there is discussion on the Floor that can result in amendments before the final legislation is passed.  Next, the original papers are transmitted to the enrolling clerk, who has the measure printed on parchment, certified by the chief officer of the originating chamber, and signed by the Speaker of the House and by either the Vice President (who is the President of the Senate) or the authorized presiding officer of the Senate.  The BILL then goes to the President for his approval or veto.

ü  Every BILL passed by the House and Senate must be presented to the President for his approval in order to become a law.

ü  The Secretary of Education is responsible for the implementation of the new Law. 

Ø  Secretary of Education:

ü  Advises Congress on proposed legislation, provides technical assistance and assists constituents on issues

ü  Enforces laws and regulations

ü  Communicates with interested parties and the public

ü  Facilitates the Negotiated Rulemaking process

Ø  Negotiated Rulemaking or Regulatory Negotiation (Neg Reg or Reg Neg) brings together representatives of a rulemaking agency and stakeholders to jointly prepare the text of a proposed regulation or rule in a consensus seeking negotiation before the agency formally submits the rule to the formal rulemaking process before it becomes a part of the Code of Federal Regulation (CFR). The goal of Negotiated Rulemaking is to develop Notices of Proposed Rulemaking (NPRM) that reflect a final consensus of the negotiating committee.