[Federal Register Volume 66, Number 130 (Friday, July 6, 2001)]
[Notices]
[Page 35658]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 01-16923]


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DEPARTMENT OF HEALTH AND HUMAN SERVICES

Substance Abuse and Mental Health Service Administration


Community Mental Health Services and Substance Abuse Prevention 
and Treatment Block Grant Maintenance of Effort Requirements: Exclusion 
From Future Year Calculations

    In keeping with SAMHSA's delegation of authority from the Secretary 
for Health and Human Services (HHS) and in compliance with section 
1915(b)(2) and section 1930(b) of the Public Health Service (PHS) Act 
as amended by Public Law 106-310, the Substance Abuse and Mental Health 
Services Administration is issuing the following guidance that will be 
used in determining whether to approve an exclusion from aggregate 
expenditures by the State used in the calculation of maintenance of 
effort requirements under both the Community Mental Health Services 
(CMHS) Block Grant program and the Substance Abuse Prevention and 
Treatment (SAPT) Block Grant program.
    Summary: Under the CMHS Block Grant program, States are required as 
a condition of receipt of funds to maintain State expenditures for 
community based mental health services for adults with serious mental 
illness and children with serious emotional disturbance at a level that 
was equal to the average expenditures for such purposes over the 
previous two years. Under the SAPT Block Grant program, the States are 
required to maintain State expenditures for the single State agency 
responsible for substance abuse services at a level that is equal to 
the average expenditures for such purposes over the previous two years. 
Under both block grants, the States are required to materially comply 
with the maintenance of effort requirements.
    Public Law 106-310 added sections 1915(b)(2) and 1930(b) to the PHS 
Act which explicitly authorize the Secretary, as a matter within his 
discretion, to exclude from the calculation of the maintenance of 
effort ``funds appropriated to the principal agency for authorized 
activities which are of a non-recurring nature and for a specific 
purpose.'' This exclusion from the maintenance of effort will, among 
other things, offer States some latitude to try new programs without 
having to commit themselves to outyear expenditures.
    This notice provides guidance to States eligible to request such an 
exclusion from the maintenance of effort requirements. The State must 
request the exclusion separate from the yearly application that it 
submits for funding under both programs and the request must be signed 
by the State's Chief Executive Officer or by an individual authorized 
on behalf of the Chief Executive Officer. The State must also submit 
documentation sufficient to support its request for an exclusion under 
section 1915(b)(2) or section 1930(b). The documentation must support 
its position that the funds were appropriated by the State legislature 
for authorized activities that are of a non-recurring nature and for a 
specific purpose, indicate the length of time the project is expected 
to last in years and months, and affirm that these expenditures would 
be in addition to funds otherwise needed to meet the State's 
maintenance of effort requirement for the year that it is applying for 
exclusion. With regard to the last point, if the State is otherwise 
required to expend $1,000,000 to satisfy its maintenance of effort 
requirement, an expenditure of $100,000 eligible for exclusion under 
this new authority must be expended in addition to the $1,000,000. It 
simply will not be used to calculate future maintenance of effort 
requirements.
    With respect to documentation to support the State's position that 
the funds were appropriated for authorized activities that are of a 
non-recurring nature and for a specific purpose, the governor's budget 
justification would be sufficient unless the appropriation for the 
principal agency responsible for community based mental health services 
or substance abuse services is below the budget request, in which case 
the State should show that the legislature intended to provide funding 
for the activity at issue. If the State legislature explicitly rejected 
that activity of the governor's budget, it may not be claimed as an 
eligible exclusion as funds have not been appropriated for the specific 
purpose in question.
    The length of time of the activity may be for more than one year. 
The longer the length of the activity, however, the more difficult it 
will be to determine that the expenditure is non-recurring.
    In addition, a State may apply for more that one exclusion in any 
one year or apply for additional exclusions in other years while other 
excluded activities are ongoing.
    In summary, in order for SAMHSA to approve a request from a State 
to have excluded from the aggregate State expenditures funds 
appropriated by the State legislature to the principal agency for 
authorized activities which are of a non-recurring nature and for a 
specific purpose, the following is necessary:
    1. The State shall request the exclusion separately from the 
application;
    2. The request shall be signed by the State's Chief Executive 
Officer or by an individual authorized to apply for the SAPT or CMHS 
Block Grant on behalf of the Chief Executive Officer. SAMHSA will 
consider such requests for funds appropriated after the date of 
enactment of Public Law 106-310, October 17, 2000, in the first year 
for which additional funds are being added to the budget for such 
activities;
    3. The State shall provide documentation that supports its position 
that the funds were appropriated by the State legislature for 
authorized activities which are of a non-recurring nature and for a 
specific purpose, indicates the length of time the project is expected 
to last in years and months, and affirms that these expenditures would 
be in addition to funds needed to otherwise meet the State's 
maintenance of effort requirement for the year for which it is applying 
for exclusion; and
    4. The Administrator of SAMHSA agrees that the criteria for 
exclusion have been met.
    Nothing in this guidance limits a State from requesting more than 
one exclusion in any one year. If during a particular year the State 
wishes to submit more than one project for exclusion, it should do so 
in a single request.

    Dated: June 28, 2001.
Richard Kopanda,
Executive Officer, SAMHSA.
[FR Doc. 01-16923 Filed 7-5-01; 8:45 am]
BILLING CODE 4162-20-P