[Federal Register Volume 72, Number 99 (Wednesday, May 23, 2007)]
[Rules and Regulations]
[Pages 28825-28827]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 07-2575]



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 Rules and Regulations
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 This section of the FEDERAL REGISTER contains regulatory documents 
 having general applicability and legal effect, most of which are keyed 
 to and codified in the Code of Federal Regulations, which is published 
 under 50 titles pursuant to 44 U.S.C. 1510.
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  Federal Register / Vol. 72, No. 99 / Wednesday, May 23, 2007 / Rules 
and Regulations  

[[Page 28825]]



CORPORATION FOR NATIONAL AND COMMUNITY SERVICE

2 CFR Part 2200

45 CFR Parts 2541, 2542 and 2545

RIN 3045-AA48


Corporation for National and Community Service Implementation of 
OMB Guidance on Nonprocurement Debarment and Suspension

AGENCY: Corporation for National and Community Service.

ACTION: Direct final rule.

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SUMMARY: The Corporation for National and Community Service is 
establishing a new part 2200 in 2 CFR as the Corporation's policies and 
procedures for nonprocurement debarment and suspension. The new part 
2200 adopts and supplements the Office of Management and Budget's 
(OMB's) guidance in 2 CFR part 180. The Corporation for National and 
Community Service is also removing 45 CFR part 2542, which contains the 
Corporation's implementation of the governmentwide common rule on 
nonprocurement debarment and suspension. 2 CFR part 2200 will serve the 
same purpose as the common rule in a simpler way. These changes 
constitute an administrative simplification that would make no 
substantive change in Corporation's policies or procedures for 
nonprocurement debarment and suspension.

DATES: This final rule is effective on July 23, 2007 without further 
action, unless adverse comment is received by the Corporation for 
National and Community Service by June 22, 2007. If adverse comment is 
received, Corporation for National and Community Service will publish a 
timely withdrawal of the rule in the Federal Register.

ADDRESSES: You may submit comments by e-mail to [email protected]. 
Include RIN 3045-AA48 in the subject line of the message. You may also 
submit comments by mail to Douglas H. Hilton, Office of the General 
Counsel, Corporation for National and Community Service, 1201 New York 
Avenue, NW., Washington, DC 20525. Contact Douglas H. Hilton for copies 
of comments.

FOR FURTHER INFORMATION CONTACT: Douglas H. Hilton, Associate General 
Counsel, 202-606-6892, [email protected].

SUPPLEMENTARY INFORMATION:

Background

    Corporation for National and Community Service's current regulation 
on nonprocurement suspension and debarment is found in 45 CFR part 
2542. This regulation is the Corporation for National and Community 
Service's promulgation of the governmentwide ``common rule'' on this 
subject, which was issued November 26, 2003 (68 FR 66586).
    On August 31, 2005, the Office of Management and Budget (OMB) 
issued interim final guidance for governmentwide nonprocurement 
suspension and debarment (70 FR 51863). This guidance, located in 2 CFR 
part 180, is substantively the same as the common rule, but is 
published in a form that each agency can adopt, thus eliminating the 
need for each agency to publish its separate version of the same rule. 
It also facilitates the ability to update governmentwide requirements 
without each agency having to re-promulgate its own rules.
    The Corporation for National and Community Service is therefore 
establishing new 2 CFR part 2200, which adopts as its regulation the 
OMB guidance set forth in 2 CFR part 180 as supplemented with the few 
required agency-specific provisions. Current 45 CFR part 2542 is being 
removed, and parts 2541 and 2545 are being amended to conform to the 
removal of part 2542.
    No substantive change in Corporation for National and Community 
Service's nonprocurement suspension and debarment regulation is 
intended by these actions.

Executive Order 12866

    OMB has determined this rule to be not significant.

Regulatory Flexibility Act of 1980 (5 U.S.C. 605(b))

    This regulatory action will not have a significant adverse impact 
on a substantial number of small entities.

Unfunded Mandates Act of 1995 (Sec. 202, Pub. L. 104-4)

    This regulatory action does not contain a Federal mandate that will 
result in the expenditure by State, local, and tribal governments, in 
aggregate, or by the private sector of $100 million or more in any one 
year.

Paperwork Reduction Act of 1995 (44 U.S.C., Chapter 35)

    This regulatory action will not impose any additional reporting or 
recordkeeping requirements under the Paperwork Reduction Act.

Federalism (Executive Order 13132)

    This regulatory action does not have Federalism implications, as 
set forth in Executive Order 13132. It will not have substantial direct 
effects on the States, on the relationship between the national 
government and the States, or on the distribution of power and 
responsibilities among the various levels of government.

List of Subjects

2 CFR Part 2200

    Administrative practice and procedure, Debarment and suspension, 
Grant programs, Reporting and recordkeeping requirements.

45 CFR Part 2541

    Accounting, Grant programs, Indians, Intergovernmental relations, 
Reporting and recordkeeping requirements.

45 CFR Part 2542

    Administrative practice and procedure, Debarment and suspension, 
Grant programs, Reporting and recordkeeping requirements.

45 CFR Part 2545

    Administrative practice and procedure, Drug abuse, Grant programs, 
Reporting and recordkeeping requirements.


0
Accordingly, under the authority of 22 U.S.C. 2503(b), the Corporation 
for National and Community Service amends the Code of Federal 
Regulations, Title 2, Subtitle B, and Title 45, Chapter XXV, as 
follows:

[[Page 28826]]

Title 2--Grants and Agreements

0
1. Add Chapter XXII, consisting of part 2200, to Subtitle B to read as 
follows:

CHAPTER XXII--CORPORATION FOR NATIONAL AND COMMUNITY SERVICE

PART 2200--NONPROCUREMENT DEBARMENT AND SUSPENSION

Sec.
2200.10 What does this Part do?
2200.20 Does this Part apply to me?
2200.30 What policies and procedures must I follow?
2200.137 Who in the Corporation for National and Community Service 
may grant an exception to let an excluded person participate in a 
covered transaction?
2200.220 What contracts and subcontracts, in addition to those 
listed in 2 CFR 180.220, are covered transactions?
2200.332 What methods must I use to pass requirements down to 
participants at lower tiers with whom I intend to do business?
2200.437 What method do I use to communicate to a participant the 
requirements described in the OMB guidance at 2 CFR 180.435?

    Authority: Sec. 2455, Pub. L. 103-355, 108 Stat. 3327; E.O. 
12549, 3 CFR, 1986 Comp., p. 189; E.O. 12689, 3 CFR, 1989 Comp., p. 
235; 22 U.S.C. 2503(b).


Sec.  2200.10  What does this Part do?

    This Part adopts the Office of Management and Budget (OMB) guidance 
in Subparts A through I of 2 CFR part 180, as supplemented by this 
part, as the Corporation for National and Community Service policies 
and procedures for nonprocurement debarment and suspension. It thereby 
gives regulatory effect for the Corporation for National and Community 
Service to the OMB guidance as supplemented by this part. This Part 
satisfies the requirements in section 3 of Executive Order 12549, 
``Debarment and Suspension'' (3 CFR 1986 Comp., p. 189), Executive 
Order 12689, ``Debarment and Suspension'' (3 CFR 1989 Comp., p. 235) 
and 31 U.S.C. 6101 note (Section 2455, Pub. L. 103-355, 108 Stat. 
3327).


Sec.  2200.20  Does this Part apply to me?

    This Part and, through this Part, pertinent portions of the OMB 
guidance in Subparts A through I of 2 CFR Part (see table at 2 CFR 
180.100(b)) apply to you if you are a--
    (a) Participant or principal in a ``covered transaction.'' (see 
Subpart B of 2 CFR part 180 and the definition of ``nonprocurement 
transaction'' at 2 CFR 180.970.
    (b) Respondent in a Corporation for National and Community Service 
suspension or debarment action;
    (c) Corporation for National and Community Service debarment or 
suspension official; or
    (d) Corporation for National and Community Service grants officer, 
agreements officer, or other official authorized to enter into any type 
of nonprocurement transaction that is a covered transaction.


Sec.  2200.30  What policies and procedures must I follow?

    The Corporation for National and Community Service policies and 
procedures that you must follow are the policies and procedures 
specified in each applicable section of the OMB guidance in Subparts A 
through I of 2 CFR part 180, as that section is supplemented by the 
section in this Part with the same section number. The contracts that 
are covered transactions, for example, are specified by section 220 of 
the OMB guidance (i.e., 2 CFR 180.220) as supplemented by section 220 
in this Part (i.e., Sec. 2200.220). For any section of OMB guidance in 
Subparts A through I of 2 CFR part 180 that has no corresponding 
section in this part, Corporation for National and Community Service 
policies and procedures are those in the OMB guidance.


Sec.  2200.137  Who in the Corporation for National and Community 
Service may grant an exception to let an excluded person participate in 
a covered transaction?

    The Chief Executive Officer (or another official designated by the 
Chief Executive Officer) has the authority to grant an exception to let 
an excluded person participate in a covered transaction, as provided in 
the OMB guidance at 2 CFR 180.135.


Sec.  2200.220  What contracts and subcontracts, in addition to those 
listed in 2 CFR 180.220, are covered transactions?

    Although the OMB guidance at 2 CFR 180.220(c) allows a Federal 
agency to do so (also see optional lower tier coverage in the figure in 
the Appendix to 2 CFR part 180), Corporation for National and Community 
Service does not extend coverage of nonprocurement suspension and 
debarment requirements beyond first-tier procurement contracts under a 
covered nonprocurement transaction.


Sec.  2200.332  What methods must I use to pass requirements down to 
participants at lower tiers with whom I intend to do business?

    You as a participant must include a term or condition in lower-tier 
transactions requiring lower-tier participants to comply with Subpart C 
of the OMB guidance in 2 CFR part 180.


Sec.  2200.437  What method do I use to communicate to a participant 
the requirements described in the OMB guidance at 2 CFR 180.435?

    To communicate to a participant the requirements described in 2 CFR 
180.435 of the OMB guidance, you as an agency official must include a 
term or condition in the transaction that requires the participant's 
compliance with subpart C of 2 CFR part 180, and requires the 
participant to include a similar term or condition in lower-tier 
covered transactions.

Title 45--Public Welfare

CHAPTER XXV--CORPORATION FOR NATIONAL AND COMMUNITY SERVICE

PART 2541--UNIFORM ADMINISTRATIVE REQUIREMENTS FOR GRANTS AND 
COOPERATIVE AGREEMENTS TO STATE AND LOCAL GOVERNMENTS

0
2. The authority citation for part 2541 continues to read as follows:

    Authority: 42 U.S.C. 4950 et seq. and 12501 et seq.


0
3. Revise the introductory text to Sec.  2541.30 to read as follows:


Sec.  2541.30  Definitions.

    The following definitions apply to terms used in this part.
* * * * *

PART 2542--[REMOVED]

0
4. Remove part 2542.

PART 2545--GOVERNMENTWIDE REQUIREMENTS FOR DRUG-FREE WORKPLACE 
(FINANCIAL ASSISTANCE)

0
5. The authority citation for part 2545 continues to read as follows:

    Authority: 41 U.S.C. 701, et seq.; 42 U.S.C. 12644 and 12651(c).


0
6. Revise Sec.  2545.510 to read as follows:


Sec.  2545.510  What actions will the Federal Government take against a 
recipient determined to have violated this part?

    If a recipient is determined to have violated this part, as 
described in Sec.  2545.500 or Sec.  2545.505, the Corporation may take 
one or more of the following actions--
    (a) Suspension of payments under the award;
    (b) Suspension or termination of the award; and
    (c) Suspension or debarment of the recipient under 2 CFR part 180 
(as

[[Page 28827]]

implemented by 2 CFR part 2200), for a period not to exceed five years.

    Dated: May 17, 2007.
Frank R. Trinity,
General Counsel.
[FR Doc. 07-2575 Filed 5-22-07; 8:45 am]
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