[Federal Register Volume 68, Number 173 (Monday, September 8, 2003)]
[Rules and Regulations]
[Pages 52843-52844]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 03-22513]


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DEPARTMENT OF HEALTH AND HUMAN SERVICES

45 CFR Parts 74 and 92


Uniform Administrative Requirements for Awards and Subawards to 
Institutions of Higher Education, Hospitals, Other Nonprofit 
Organizations, and Commercial Organizations; and Certain Grants and 
Agreements with States, Local Governments and Indian Tribal Governments 
and Uniform Administrative Requirements for Grants and Cooperative 
Agreements to State and Local Governments

AGENCY: Department of Health and Human Services (HHS).

ACTION: Final rule.

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SUMMARY: The Department of Health and Human Services (HHS) is revising 
its grants management regulations in order to bring the entitlement 
grant programs it administers under the same regulations that already 
apply to non-entitlement programs for grants and cooperative agreements 
to State, local, and tribal governments.

DATES: This rule is effective September 8, 2003. Implementation shall 
be phased in by incorporating the provisions into awards made after the 
start of the next Federal entitlement program year.

FOR FURTHER INFORMATION CONTACT: Marc R. Weisman, Acting Deputy 
Assistant Secretary for Grants and Acquisition Management, HHS, Room 
336-E, 200 Independence Avenue, SW., Washington, DC 20201; FAX (202) 
690-6902; Telephone (202) 690-8554. These are not toll-free numbers.

SUPPLEMENTARY INFORMATION:

Background and Purpose

    On March 11, 1988, HHS joined other Federal agencies in publishing 
a final grants management ``common rule'' which provides a uniform 
system for the administration of grants and cooperative agreements, and 
by subawards thereunder, to State, local, and tribal governments. Prior 
to that date, administrative requirements for awards and subawards 
under all HHS programs were codified under 45 CFR part 74. HHS 
implemented the Common Rule at 45 CFR part 92. At the time, entitlement 
grant programs of the Social Security Act (the Act) administered by HHS 
and the Department of Agriculture were excepted from the common rule, 
because it was believed that the States operated entitlement programs 
differently than non-entitlement programs. Therefore, subpart E was 
reserved in the rule to subsequently address provisions specific to 
entitlement programs. Pending the publication of subpart E to part 92, 
the HHS entitlement programs have remained under part 74. As cited in 
45 CFR 92.4, these programs included:
    (1) Aid to Needy Families with Dependent Children (Title IV-A of 
the Act, not including the Work Incentive Program (WIN) authorized by 
section 402(a)19(G));
    (2) Child Support Enforcement and Establishment of Paternity (Title 
IV-D of the Act);
    (3) Foster Care and Adoption Assistance (Title IV-E of the Act);
    (4) Aid to the Aged, Blind, and Disabled (Titles I, X, XIV, and 
XVI-AABD of the Act);
    (5) Medical Assistance (Medicaid) (Title XIX of the Act) not 
including the State Medicaid Fraud Control program authorized by 
section 1903(a)(6)(B);
    (6) State Children's Health Insurance Program (Title XXI of the 
Act); and
    (7) Certain grant funds awarded under subsection 412(e) of the 
Immigration and Nationality Act and subsection 501(a) of the Refugee 
Education Assistance Act of 1980.
    Experimental, pilot, or demonstrations involving the above programs 
also remained under Part 74.
    This rule will expand the scope of 45 CFR part 92 to include the 
entitlement grant programs cited above and remove such programs from 
the scope of part 74. Therefore, both entitlement and non-entitlement 
awards to State, local, and tribal governments will be under the same 
administrative rules. This will enable State, local, and tribal 
grantees and other affected parties, such as auditors, to use the same 
administrative rules for the vast majority of their Federal programs. 
This action will also reduce unnecessary confusion and inefficiency in 
program administration.
    On November 15, 2000, HHS published a Notice of Proposed Rulemaking 
(Proposed Rule) (65 FR 68969) as the first step in developing a single 
set of grant and subgrant administrative rules for all types of 
organizations operating HHS entitlement programs. HHS received no 
comments on the proposed rule.

Technical Amendments

Section 92.4(a)

    HHS is making a technical change in Sec.  92.4(a) to recognize the 
revisions made to the USDA grants management regulations at 7 CFR part 
3016 bringing USDA administered entitlement grant programs under the 
common rule.

Regulatory Impact Analysis

Executive Order 12866

    In accordance with the provisions of Executive Order 12866, the 
Office of Management and Budget did not review this rule because it is 
not a significant regulatory action as defined in Executive Order 
12866.

Regulatory Flexibility Act

    In accordance with the Regulatory Flexibility Act (5 U.S.C. 
605(b)), the Secretary has reviewed this rule before publication and, 
by approving it, certifies that it will not have a significant impact 
on a substantial number of small entities. This rule does not affect 
the amount of funds provided in the covered programs but, instead, 
modifies and updates the administrative and procedural requirements.

Unfunded Mandates Reform Act

    The Department has determined that this rule is not a significant 
regulatory action within the meaning of the Unfunded Mandates Reform 
Act of 1995, 2 U.S.C. 1501, et seq., because it will not result in 
State, local, or tribal government expenditures of $100 million or 
more.

Paperwork Reduction Act of 1995

    The reporting and recordkeeping requirements of this rule are the 
same as those required by OMB Circulars A-102 and A-110 and have 
already been cleared by OMB. Therefore, HHS believes this rule will not 
impose additional information collection

[[Page 52844]]

requirements on grantees and subgrantees.

List of Subjects

45 CFR Part 74

    Accounting, Administrative practice and procedure, Colleges and 
universities, Grant programs, Hospitals, Indians, Intergovernmental 
relations, Nonprofit organizations, and Reporting and recordkeeping 
requirements.

45 CFR Part 92

    Accounting, Grant programs, Indians, Intergovernmental relations, 
Reporting and record keeping requirements.

(Catalog of Federal Domestic Assistance number does not apply.)

    Dated: July 29, 2003.
Tommy G. Thompson,
Secretary.

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For the reasons discussed in the preamble, the Department amends title 
45 of the Code of Federal Regulations as follows:

PART 74--UNIFORM ADMINISTRATIVE REQUIREMENTS FOR AWARDS AND 
SUBAWARDS TO INSTITUTIONS OF HIGHER EDUCATION, HOSPITALS, OTHER 
NONPROFIT ORGANIZATIONS, AND COMMERCIAL ORGANIZATIONS

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1. The authority citation for part 74 is revised to read as follows:

    Authority: 5 U.S.C. 301.

0
2. Revise the heading for part 74 to read as shown above.

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3. In Sec.  74.1 remove paragraph (a)(3).

PART 92--UNIFORM ADMINISTRATIVE REQUIREMENTS FOR GRANTS AND 
COOPERATIVE AGREEMENTS TO STATE, LOCAL, AND TRIBAL GOVERNMENTS

0
1. The authority citation for part 92 continues to read as follows:

    Authority: 5 U.S.C. 301.

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2. Revise the heading for part 92 to read as shown above.

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3. In Sec.  92.4:
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a. Paragraphs (a)(3) through (8) are removed and paragraphs (a)(9) and 
(10) are redesignated as (a)(3) and (4).

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b. Paragraph (b) is removed and reserved.
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4. Remove Subpart E, Entitlement.
[FR Doc. 03-22513 Filed 9-5-03; 8:45 am]
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