[Federal Register Volume 63, Number 230 (Tuesday, December 1, 1998)]
[Rules and Regulations]
[Pages 66062-66063]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-31869]


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DEPARTMENT OF HEALTH AND HUMAN SERVICE

42 CFR Part 50

Rin 0930-2A00


Simplification of Grant Appeals Process

AGENCY: Health and Human Services Department.

ACTION: Final rule.

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SUMMARY: Pursuant to 42 CFR part 50, subpart D, the Indian Health 
Service (IHS) and the Substance Abuse and Mental Health Services 
Administration (SAMHSA) (formerly, the Alcohol, Drug Abuse and Mental 
Health Administration) have provided an informal level of appeal on 
those grant related disputes subject to the departmental appeal 
procedures codified at 45 CFR part 16.\1\ The Department of Health and 
Human Services is amending its regulations to remove IHSA and ADAMHA 
(now SAMHSA) from the list of agencies to which those informal appeal 
procedures apply and thus permit aggrieved grantees direct access to 
the Departmental Appeals Board and that Board's original jurisdiction.
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    \1\ Section 161 of the ADAMHA Reorganization Act, Pub. L. 102-
321 (July 10, 1992), provides that references in any regulations to 
ADAMHA shall be deemed to refer to SAMHSA and, accordingly, the 
informal level of appeal was available to SAMHSA's grantees.

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DATES: The regulation is effective December 31, 1998.

FOR FURTHER INFORMATION: For the Indian health Service, Ms. M. Kay 
Carpentier, (301) 443-5204; for the Substance Abuse and Mental Health 
Services Administration, Thomas M. Reynolds. (301) 443-0179.

SUPPLEMENTARY INFORMATION: The notice of proposed rulemaking (NPRM) was 
published in the Federal Register on February 25, 1998 (Vol. 63, No. 
37, pages 9499-9500). That Notice proposed to amend 42 CFR part 50, 
subpart D, to eliminate the requirement that grantees must exhaust 
their appeal rights at the IHS or SAMHSA level prior to bringing a 
grant dispute before the Departmental Appeals Board. Accordingly, this 
proposed change would permit affected grantees immediate access to the 
Departmental Appeals Board. No comments were received.
    Consequently, the Department is amending 42 CFR part 50, subpart D, 
to remove IHS and ADAMHA (now SAMHSA) from the list of agencies to 
which the regulations apply as proposed by the NPRM. As a result, 
grantees wishing to appeal IHS's and SAMHSA's eligible adverse 
determinations will be entitled to appeal such determinations directly 
to the Departmental Appeals Board. In addition, 42 CFR part 50, subpart 
D, is revised to reflect organizational changes in the Department, 
particularly that pertaining to the public Health Service.

Economic Impact

    This rule does not have cost implications for the economy of $100 
million or otherwise meet the criteria for a major rule under Executive 
Order 12291, and therefore does not require a regulation impact 
analysis. Further, this regulation will not have a significant impact 
on a substantial number of small entities, and therefore does not 
require a regulatory flexibility analysis under the Regulatory 
Flexibility Act of 1980.

Regulatory Evaluation

    This final rule is not a significant regulatory action under 
section 3(f) of the Executive Order 12866 and does not require an 
assessment of the potential costs and benefits under section 6(a)(3) of 
that Order and so has been exempted from review by the Office of 
Management and Budget under that Order.

Paperwork Reduction Act

    There are no new paperwork requirements subject to the Office of 
Management and Budget approval under the Paperwork Reduction Act of 
1980.

List of Subjects in 42 CFR Part 50

    Administrative practice and procedure, Grant programs--Health, 
Health care.

    Approved: November 20, 1998.
Donna E. Shalala,
Secretary.
    For the reasons set forth in the preamble, sub part D of part 50 of 
Title 52 of the Code of Federal Regulations is amended as follows:

PART 50--[AMENDED]

    1. The authority citation for part 42, Subpart D, continues to read 
as follows:

    Authority: Sec. 215, Public Health Service Act, 58 Stat. 690 (42 
U.S.C. 216); 45 CFR 16.3(c).

    2. Section 50.401 is revised to read as follows:


Sec. 50.401  What is the purpose of this subpart?

    This subpart establishes an informal procedure for the resolution 
of certain postaward grant and cooperative agreement disputes within 
the agencies and offices identified in Sec. 50.402.
    3. Section 50.402 is revised to read as follows:


Sec. 50.402  To what programs do these regulations apply?

    This subpart applies to all grant and cooperative agreement 
programs, except block grants, which are administered by the National 
Institutes of Health; the Health Resources and Services Administration; 
the Centers for Disease Control and Prevention; the Agency for Toxic 
Substances and Disease Registry; the Food and Drug Administration; and 
the Office of the Assistant Secretary for Public Health and Science. 
For purposes of this regulation, the entities are hereinafter referred 
to as ``agencies.''
    4. The third sentence of Sec. 50.403 is revised to read as follows:


Sec. 50.403  What is the policy basis for these procedures?

    * * * This subpart provides such an informal preliminary procedure 
for resolution of disputes in order to preclude submission of cases to 
the Departmental Appeals Board before an agency identified in 
Sec. 50.402 has had an opportunity to review decisions of its officials 
and to settle disputes with grantees.
    5. In Sec. 50.404, paragraph (a) introductory text and the first 
sentence of paragraph (b) are revised to read as follows:


Sec. 50.404  What disputes are covered by these procedures?

    (a) These procedures are applicable to the following adverse 
determinations under discretionary project grants and cooperative 
agreements (both referred to in this subpart as grants) issued by the 
agencies identified at Sec. 50.402;
* * * * *
    (b) A determination subject to this subpart may not be reviewed by 
the review committee described in Sec. 50.405 unless an officer or 
employee of the agency has notified the grantee in writing of the 
adverse determination. * * *
    6. In Sec. 50.405, the second sentence is removed and the first 
sentence is revised to read as follows:

[[Page 66063]]

Sec. 50.405  What is the structure of review committees?

    The head of the agency, or his or her designee, shall appoint 
review committees to review adverse determinations made by officials 
for programs under their jurisdiction. * * *
    7. Sec. 50.406, paragraphs (a), (c), (d) and (g) and the first 
sentence of (e) are revised to read as follows:


Sec. 50.406  What are the steps in the process?

    (a) A grantee with respect to whom an adverse determination 
described in Sec. 50.404(a) above has been made and who desires a 
review of that determination must submit a request for such review to 
the head of the appropriate agency or his or her designee no later than 
30 days after the written notification of the determination is 
received, except that if the grantee shows good cause why an extension 
of time should be granted, the head of the appropriate agency or his or 
her designee may grant an extension of time.
* * * * *
    (c) When a request for review has been filed under this subpart 
with respect to an adverse determination, no action may be taken by the 
awarding agency pursuant to such determination until the request has 
been disposed of, except that the filing of the request shall not 
affect any authority which the agency may have to suspend assistance or 
otherwise to withhold or defer payments under the grant during 
proceedings under this subpart. This paragraph does not require the 
awarding agency to provide continuation funding during the appeal 
process to a grantee whose noncompeting continuation award has been 
denied.
    (d) Upon receipt of a request for review, the head of the agency or 
his or her designee will make a decision as to whether the dispute is 
reviewable under this subpart and will promptly notify the grantee and 
the office responsible for the adverse determination of this decision. 
If the head of the agency or his or her designee determines that the 
dispute is reviewable, he or she will forward the matter to the review 
committee appointed under Sec. 50.405.
    (e) The agency involved will provide the review committee appointed 
under Sec. 50.405 with copies of all relevant background materials 
(including applications(s), award(s), summary statement(s), and 
correspondence) and any additional pertinent information available. * * 
*
* * * * *
    (g) The review committee may, at its discretion, invite the grantee 
and/or the agency staff to discuss the pertinent issues with the 
committee and to submit such additional information as the committee 
deems appropriate.
* * * * *
[FR Doc. 98-31869 Filed 11-30-98; 8:45 am]
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