[Federal Register Volume 66, Number 226 (Friday, November 23, 2001)]
[Notices]
[Pages 58746-58747]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 01-29217]


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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 published a guidance in the Federal Register 
(66 FR 35658) on July 6, 2001, to be used in determining whether to 
approve the exclusion of certain expenditures from aggregate 
expenditures used by the State in calculating the maintenance of effort 
requirement under the Community Mental Health Services (CMHS) Block 
Grant program and/or the Substance Abuse Prevention and Treatment 
(SAPT) Block Grant program.
    In implementing the guidance, SAMHSA has learned that there was an 
unintendedly harsh consequence as a result of our stating that the 
funds to be excluded had to be appropriated by the State after the date 
of enactment of Public Law 106-310, October 17, 2000, which contained 
the new authority permitting the exclusion of certain expenditures. The 
intention of the requirement was to ensure that the new statutory 
authority was not applied retroactively, contrary to our understanding 
of the intent of the provision. In using the term ``appropriated,'' 
however, the agency inadvertently also eliminated consideration of 
funds that were appropriated by those States whose fiscal year 2001 
began before October 17, 2000, the date of enactment of Public Law 106-
310, thus creating an inequitable situation. Changing the language of 
the guidance to the date of expenditure rather than appropriation 
addresses both the issue of retroactive application and equitability.
    Accordingly, we are revising the guidance by substituting in the 
second element of the guidance the word ``expended'' for the word 
``appropriated.'' Thus funds that were appropriated by the State prior 
to October 17, 2000 but had not yet been expended may, in the 
discretion of the Administrator of SAMHSA, be considered for an 
exclusion.
    Thus the guidance is now as follows:
    ``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 expended 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

[[Page 58747]]

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: November 16, 2001.
Richard Kopanda,
Executive Officer, Substance Abuse and Mental Health Administration.
[FR Doc. 01-29217 Filed 11-21-01; 8:45 am]
BILLING CODE 4162-20-P