[Federal Register Volume 61, Number 3 (Thursday, January 4, 1996)]
[Rules and Regulations]
[Pages 250-251]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-76]



-----------------------------------------------------------------------


DEPARTMENT OF AGRICULTURE
7 CFR Part 3017

RIN 0503-AA12


Nonprocurement Debarment and Suspension

AGENCY: Department of Agriculture (USDA).

ACTION: Final rule.

-----------------------------------------------------------------------

SUMMARY: This final rule amends the USDA regulations that implement 
Executive Order (E.O.) 12549, ``Debarment and Suspension.'' E.O. 12549 
required executive departments and agencies to issue regulations, 
consistent with guidelines issued by the Office of Management and 
Budget (OMB), to establish governmentwide effect for an agency's 
nonprocurement debarment and suspension actions. These changes will 
enhance USDA participation in the governmentwide nonprocurement 
debarment and suspension system by making appropriate modifications to 
the coverage of the regulations and clarifying the relationship of the 
regulations to other USDA procedures for establishing participant 
ineligibility for specific programs.

EFFECTIVE DATE: February 5, 1996.

FOR FURTHER INFORMATION CONTACT:
Gary W. Butler, Deputy Assistant General Counsel, Office of the General 
Counsel, (202) 720-2577.

SUPPLEMENTARY INFORMATION: As part of the Federal Government's 
initiatives to curb fraud, waste, and abuse, E.O. 12549, ``Debarment 
and Suspension,'' was signed on February 18, 1986. E.O. 12549 required 
executive departments and agencies to issue regulations to establish 
governmentwide effect for each agency's nonprocurement debarment and 
suspension actions. Section 3 of E.O. 12549 required that such 
regulations be consistent with guidelines issued by OMB.
    On October 20, 1987, 20 executive departments and agencies 
published a proposed common rule (52 FR 39035-39042) which implemented 
the final OMB guidelines that had been published on May 29, 1987 (52 FR 
20360-20369). USDA did not join the proposed common rule, but rather 
published a proposed rule that addressed some problems peculiar to USDA 
while being consistent with the OMB guidelines.
    On May 26, 1988, 27 executive departments and agencies published a 
final common rule (53 FR 19159-19211) and OMB adopted the final common 
rule as its amended final guidelines. Upon reconsideration of the issue 
of joining the common rule, USDA published a final rule on January 30, 
1989 (54 FR 4729), which followed the text of the final common rule 
published on May 26, 1988. However, USDA limited the scope of coverage 
of the rule (7 CFR part 3017) to domestic assistance transactions and 
added material generally to reflect internal organization and 
procedures. Following extended consultations with OMB, USDA has 
determined that the coverage of this rule should be amended by removing 
the provision that limits the coverage of the rule to domestic 
assistance transactions.
    Accordingly, on September 26, 1995, USDA published in the Federal 
Register (60 FR 49519-49523) a notice of proposed rule making (NPRM) to 
amend 7 CFR part 3017 to make the scope of the USDA rule consistent 
with the scope of the common rule as adopted by most other agencies. 
USDA, however, proposed making additional specific exceptions from 
coverage of the common rule, as implemented by USDA, that are deemed in 
the public interest. The rational for such additional specific 
exceptions from coverage was explained fully in the NPRM.
    USDA solicited comments concerning our proposal for 60 days ending 
November 27, 1995. We received no timely comments in response to the 
NPRM. We, however, did receive one subsequent comment that was wholly 
supportive of the USDA proposal. Therefore, based on the rationale set 
forth in the NPRM, USDA is adopting the provisions of the proposal as 
the final rule.

Impact Analysis

Executive Order 12866

    This rule has been determined to be ``significant,'' and it has 
been reviewed by the Office of Management and Budget.

Regulatory Flexibility Act of 1980

    The Regulatory Flexibility Act of 1980 (5 U.S.C. 601 et seq.) 
requires that, for each rule with a ``significant economic impact on a 
substantial number of small entities,'' an analysis must be prepared 
describing the rule's impact on small entities and identifying any 
significant alternatives to the rule that would minimize the economic 
impact on the small entities.
    USDA certifies that these regulations will not have a significant 
economic impact on a substantial number of small entities.

Paperwork Reduction Act

    USDA certifies that this rule will not impose any reporting or 
recordkeeping requirements under the Paperwork Reduction Act of 1980, 
44 U.S.C. Chapter 35.

List of Subjects in 7 CFR Part 3017

    Administrative practice and procedure, Grant administration, Grant 
programs (Agriculture).

    For the reasons set forth in the preamble, USDA amends 7 CFR part 
3017 as follows:

PART 3017--GOVERNMENTWIDE DEBARMENT AND SUSPENSION (NONPROCUREMENT) 
AND GOVERNMENTWIDE REQUIREMENTS FOR DRUG-FREE WORKPLACE (GRANTS)

    1. The authority citation for part 3017 is revised to read as 
follows:

    Authority: 5 U.S.C. 301; 41 U.S.C. 701 et seq.; E.O. 12549, 51 
FR 6370, 3 CFR, 1986 Comp., p. 189.

    2. Section 3017.110 is amended by revising paragraph (a) (3) to 
read as follows:


Sec.  3017.110  Coverage.

    (a) * * *
    (3) Department of Agriculture covered transactions. (i) With 
respect to paragraph (a)(1) of this section, for USDA's export and 
foreign assistance programs, covered transactions will include only 
primary covered transactions. Any lower tier transactions with respect 
to UDSA's export and foreign assistance programs will not be 

[[Page 251]]
considered lower tier covered transactions for the purposes of this 
part. The export or substitution of Federal timber governed by the 
Forest Resources Conservation and Shortage Relief Act of 1990, 16 
U.S.C. 620 et seq. (the ``Export Act''), is specifically excluded from 
the coverage of this rule. The Export Act provides separate statutory 
authority to debar persons engaged in both primary covered transactions 
and lower tier transactions.
    (ii) With respect to paragraph (a)(1)(ii)(B) of this section, for 
USDA's domestic food assistance programs, only the initial such 
procurement contract and the first tier subcontract under that 
procurement contract shall be considered lower tier covered 
transactions.
    (iii) With respect to paragraph (a)(2) of this section, the 
following USDA transactions also are not covered: transactions under 
programs which provide statutory entitlements and make available loans 
to individuals and entities in their capacity as producers of 
agricultural commodities; transactions under conservation programs; 
transactions under warehouse licensing programs; the receipt of 
licenses, permits, certificates, and indemnification under regulatory 
programs conducted in the interest of public health and safety and 
animal and plant health and safety; the receipt of official grading and 
inspection services, animal damage control services, public health and 
safety inspection services, and animal and plant health and safety 
inspection services; if the person is a State or local government, the 
provision of official grading and inspection services, animal damage 
control services, public health and safety inspection services, animal 
and plant health and safety inspection services; and permits, licenses, 
exchanges and other acquisitions of real property, rights of way, and 
easements under natural resource management programs.
* * * * *
    3. Section 3017.115 is amended by adding a new paragraph (d) to 
read as follows:


Sec. 3017.115  Policy.

* * * * *
    (d) In any case in which an administrative exclusion is considered 
under an authority other than this part, USDA will initiate, where 
appropriate, a debarment or suspension action under this part for the 
protection of the entire Federal Government.
    4. Section 3017.200 is amended by adding a new paragraph (d) to 
read as follows:


Sec. 3017.200  Debarment or suspension.

* * * * *
    (d) Department of Agriculture excepted transactions. With respect 
to paragraph (c) of this section, the following USDA transactions also 
are excepted: transactions under programs which provide statutory 
entitlements and make available loans to individuals and entities in 
their capacity as producers of agricultural commodities; transations 
under conservation programs; transactions under warehouse licensing 
programs; the receipt of licenses, permits, certificates, and 
indemnification under regulatory programs conducted in the interest of 
public health and safety and animal and plant health and safety; the 
receipt of official grading and inspection services, animal damage 
control services, public health and safety inspection services, and 
animal and plant health and safety inspection services; if the person 
is a State or local government, the provision of official grading and 
inspection services, animal damage control services, public health and 
safety inspection services, and animal and plant health and safety 
inspection services; and permits, licenses, exchanges, and other 
acquisitions of real property, rights of way, and easements under 
natural resource management programs.

    Dated: December 21, 1995.
Dan Glickman,
Secretary of Agriculture.
[FR Doc. 96-76 Filed 1-3-96; 8:45 am]
BILLING CODE 3410-01-M