[Federal Register Volume 84, Number 246 (Monday, December 23, 2019)]
[Rules and Regulations]
[Pages 70393-70399]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-27248]



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 Rules and Regulations
                                                 Federal Register
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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. 84, No. 246 / Monday, December 23, 2019 / 
Rules and Regulations  

[[Page 70393]]



DEPARTMENT OF AGRICULTURE

Commodity Credit Corporation

7 CFR Part 1487

RIN 0551-AA98


Technical Assistance for Specialty Crops Program

AGENCY: Commodity Credit Corporation and Foreign Agricultural Service, 
USDA.

ACTION: Final rule.

-----------------------------------------------------------------------

SUMMARY: This rule revises the Technical Assistance for Specialty Crops 
(TASC) program regulations to incorporate legislative changes 
introduced in the Agriculture Improvement Act of 2018 and to 
incorporate changes that conform the operation of the program to the 
requirements in the ``Uniform Administrative Requirements, Cost 
Principles, and Audit Requirements for Federal Awards'' (Uniform 
Guidance) and Federal grant-making best practices.

DATES: This rule is effective on December 23, 2019.

FOR FURTHER INFORMATION CONTACT: Curt Alt, (202) 690-4784, 
[email protected].

SUPPLEMENTARY INFORMATION:

Background

    The TASC is authorized by Section 203 of the Agricultural Trade Act 
of 1978 (7 U.S.C. 5623), as amended. The TASC regulations appear at 7 
CFR part 1487.
    The Agriculture Improvement Act of 2018 (Pub. L. 115-334), which 
reauthorized the program for fiscal years 2019-2023, introduced 
legislative changes to the program that improve the program's 
flexibility and usefulness to stakeholders, such as making work on 
potential barriers to trade eligible for funding under the program and 
eliminating the five-year limit on program funding. In addition, this 
rule updates the regulations to bring the operation of the program into 
conformance with the requirements in the Uniform Guidance. Additional 
changes are desirable to bring the administration of the program into 
line with the current best practices in Federal grantmaking.

Notice and Comment

    This rule is being issued as a final rule without prior notice and 
opportunity for comment. The Administrative Procedure Act (5 U.S.C. 
553) exempts rules ``relating . . . to public property, loans, grants, 
benefits, or contracts'' from the statutory requirements for prior 
notice and opportunity for comment and publication of the rule not less 
than 30 days before its effective date (5 U.S.C. 553(a)(2)). 
Accordingly, this final rule is effective when published in the Federal 
Register.

Catalog of Federal Domestic Assistance

    The program covered by this regulation is listed in the Catalog of 
Federal Domestic Assistance (CFDA) under the following FAS CFDA number: 
10.604, Technical Assistance for Specialty Crops Program.

E-Government Act Compliance

    The Foreign Agricultural Service (FAS) is committed to complying 
with the E-Government Act of 2002 (44 U.S.C. chapter 36), to promote 
the use of the internet and other information technologies to provide 
increased opportunities for citizens' access to Government information 
and services, and for other purposes.

Executive Order 12988

    This rule has been reviewed in accordance with Executive Order 
12988, ``Civil Justice Reform.'' This rule does not preempt State or 
local laws, regulations, or policies unless they present an 
irreconcilable conflict with this rule. This rule will not be 
retroactive.

Executive Order 12372

    Executive Order 12372, ``Intergovernmental Review of Federal 
Programs,'' requires consultation with officials of State and local 
governments that would be directly affected by the proposed Federal 
financial assistance. The objectives of the Executive order are to 
foster an intergovernmental partnership and a strengthened federalism 
by relying on State and local processes for the State and local 
government coordination and review of proposed Federal financial 
assistance and direct Federal development. This rule will not directly 
affect State or local governments, and, for this reason, it is excluded 
from the scope of Executive Order 12372.

Executive Order 12866 and 13563

    Executive Orders 12866 and 13563 direct agencies to assess all 
costs and benefits of available regulatory alternatives and, if 
regulation is necessary, to select regulatory approaches that maximize 
net benefits (including potential economic, environmental, public 
health and safety effects, distributive impacts, and equity). Executive 
Order 13563 emphasizes the importance of quantifying both costs and 
benefits, of reducing costs, of harmonizing rules, and of promoting 
flexibility. This final rule has been determined to be not significant 
and was not reviewed by the Office of Management and Budget (OMB) in 
conformance with Executive Order 12866.

Congressional Review Act

    Pursuant to the Congressional Review Act (5 U.S.C. 801 et seq.), 
the Office of Information and Regulatory Affairs has designated this 
rule as not a major rule, as defined by 5 U.S.C. 804(2).

Executive Order 13175

    This rule has been reviewed for compliance with Executive Order 
13175, ``Consultation and Coordination with Indian Tribal 
Governments.'' Executive Order 13175 requires Federal agencies to 
consult and coordinate with tribes on a government-to-government basis 
on policies that have tribal implications, including regulations, 
legislative comments, proposed legislation, and other policy statements 
or actions that have substantial direct effects on one or more Indian 
tribes, on the relationship between the Federal Government and Indian 
tribes or on the distribution of power and responsibilities between the 
Federal Government and Indian tribes. FAS has assessed the impact of 
this rule on Indian tribes and determined that this rule does not, to 
the knowledge of FAS, have tribal implications that require tribal 
consultation under Executive Order 13175. If a tribe requests

[[Page 70394]]

consultation, FAS will work with USDA Office of Tribal Relations to 
ensure meaningful consultation is provided where changes, additions, 
and modifications identified herein are not expressly mandated by 
Congress.

Executive Order 13771

    Executive Order 13771 directs agencies to reduce regulation and 
control regulatory costs and provides that for every new regulation 
issued, at least two prior regulations be identified for elimination, 
and that the cost of planned regulations be prudently managed and 
controlled through a budgeting process. This rule is not an Executive 
Order 13771 regulatory action because this rule is not significant 
under Executive Order 12866.

List of Subjects in 7 CFR Part 1487

    Agricultural commodities, Exports.

0
For the reasons discussed in the preamble, 7 CFR part 1487 is revised 
to read as follows:

PART 1487--TECHNICAL ASSISTANCE FOR SPECIALTY CROPS

Sec.
1487.1 General purpose and scope.
1487.2 Definitions.
1487.3 Program eligibility.
1487.4 Limits on the scope of proposals.
1487.5 Application process.
1487.6 Application review and formation of agreements.
1487.7 Applicant notification.
1487.8 Reimbursements and advances.
1487.9 Reporting.
1487.10 Notification of international travel.
1487.11 Evaluation.
1487.12 Compliance reviews and notices.
1487.13 Records retention.
1487.14 Program income.
1487.15 Subrecipients.
1487.16 Suspension and termination of agreements.
1487.17 Audit requirements.
1487.18 Disclosure of program information.
1487.19 Ethical conduct.
1487.20 Amendments.
1487.21 Noncompliance with an agreement.
1487.22 Paperwork reduction requirements.

    Authority:  7 U.S.C. 5623, 5662-5663, as amended.


Sec.  1487.1  General purpose and scope.

    (a) Under the Technical Assistance for Specialty Crops (TASC) 
program, the Commodity Credit Corporation (CCC), an agency and 
instrumentality of the United States within the U.S. Department of 
Agriculture (USDA), provides grant funds to eligible organizations to 
implement activities that are intended to address existing or potential 
sanitary, phytosanitary, or technical barriers that prohibit or 
threaten the export of U.S. specialty crops that are currently 
available on a commercial basis. The TASC program is intended to 
benefit the represented industry rather than a specific company or 
brand.
    (b) This part sets forth the general terms, conditions, and 
policies governing CCC's operation of the TASC program.
    (c)(1) The Office of Management and Budget (OMB) issued guidance on 
Uniform Administrative Requirements, Cost Principles, and Audit 
Requirements for Federal Awards in 2 CFR part 200. In 2 CFR 400.1, the 
U.S. Department of Agriculture (USDA) adopted OMB's guidance in 
subparts A through F of 2 CFR part 200, as supplemented by 2 CFR part 
400, as USDA policies and procedures for uniform administrative 
requirements, cost principles, and audit requirements for Federal 
awards.
    (2) The OMB guidance at 2 CFR part 200, as supplemented by 2 CFR 
part 400 and this part, applies to the TASC program.
    (3) In addition to the provisions of this part, other regulations 
that are generally applicable to grants and cooperative agreements of 
USDA, including the applicable regulations set forth in 2 CFR chapters 
I, II, and IV, also apply to the TASC program, to the extent that these 
regulations do not directly conflict with the provisions of this part. 
The provisions of the CCC Charter Act (15 U.S.C. 714 et seq.) and any 
other statutory provisions or regulatory provisions that are generally 
applicable to CCC also apply to the TASC program.
    (d) The TASC program generally operates on a reimbursement basis. 
The program is administered by the Foreign Agricultural Service (FAS), 
acting on behalf of CCC.


Sec.  1487.2  Definitions.

    For purposes of this part, the following definitions apply:
    Activity means a discrete undertaking within a project to be 
carried out by a Participant, directly or through a subrecipient or 
contractor, that is specified in an agreement and is intended to 
fulfill a specific objective of the agreement.
    Agreement means a legally binding grant entered into between CCC 
and a TASC applicant setting forth the terms and conditions to 
implement an approved project under the TASC program, including any 
subsequent amendments to such agreement.
    Approval letter means a document by which CCC informs an applicant 
that its TASC proposal has been approved for funding. This letter may 
also approve specific activities and contain terms and conditions in 
addition to the agreement.
    Attach[eacute]/Counselor means the FAS employee representing United 
States Department of Agriculture interests in a foreign country.
    Eligible organization means any U.S. organization that demonstrates 
a role or interest in the exports of specialty crops, including, but 
not limited to: U.S. Government agencies, State government agencies, 
non-profit trade associations, universities, agricultural cooperatives, 
and private companies.
    Participant means an entity that has entered into a TASC agreement 
with CCC.
    Specialty crop means most cultivated plants produced in the United 
States, or the products thereof, except wheat, feed grains, oilseeds, 
cotton, rice, peanuts, sugar, and tobacco.
    Unified Export Strategy (UES) system means the online internet 
system maintained by FAS through which applicants currently may apply 
to TASC and the other FAS market development programs. The system is 
currently accessible at https://apps.fas.usda.gov/ues/webapp/. FAS may 
prescribe a different system through which applicants may apply to TASC 
and will announce such system in the applicable Notice of Funding 
Opportunity (NOFO).
    United States means each of the States, the District of Columbia, 
Puerto Rico, and the territories and possessions of the United States.


Sec.  1487.3  Program eligibility.

    (a) An eligible organization can submit an application under this 
part to become a Participant under the TASC Program. FAS will set forth 
specific eligibility information, including any factors or priorities 
that will affect the eligibility of an applicant or application for 
selection, in the full text of the applicable NOFO posted on the U.S. 
Government website for grant opportunities.
    (b) In order to be eligible for funding under the TASC program, 
activities must address existing or potential sanitary, phytosanitary, 
or technical barriers to the export of U.S. specialty crops. Examples 
of expenses that CCC may agree to cover under the TASC program include 
but are not limited to expenses associated with: Initial pre-clearance 
programs, export protocol and work plan support, seminars and 
workshops, study tours, field surveys, development of pest lists, pest 
and disease research, database development, reasonable logistical and 
administrative support, and travel and per diem expenses.

[[Page 70395]]

    (c) Eligible projects may take place in the United States or 
abroad.
    (d) Proposals from research and consulting entities will be 
considered for funding assistance only with evidence of substantial 
participation in and financial support to the proposed project by U.S. 
industry. Such support is most credibly demonstrated through actual 
monetary contributions to the cost of the project.
    (e) Foreign organizations, whether government or private, may 
participate as third parties in activities carried out by U.S. 
entities, but are not eligible for funding assistance from the program.


Sec.  1487.4  Limits on the scope of proposals.

    (a) Funding cap. Proposals that request more than $500,000 of CCC 
funding in a given year will not be considered.
    (b) Length of activities. Awards will generally be granted for a 
project period not exceeding five calendar years. However, FAS will 
entertain requests to extend agreements beyond five years when valid 
justifications are submitted. Participants must submit in writing a 
valid justification for why an extension is necessary no later than 60 
days before the end of the period of performance. Extensions generally 
will be granted in one-year increments, if warranted. A Participant 
must wait for written approval from FAS before proceeding with the 
project.
    (c) Target countries. Proposals may target barriers in any eligible 
export market, including single countries or reasonable regional 
groupings of countries.
    (d) Multiple proposals. Applicants may submit multiple proposals, 
but no Participant may have more than five approved projects underway 
at any given time.
    (e) Program funds only for specific uses. Participants shall not 
use program funds to supplement the costs of normal day-to-day 
operations or to promote their own products or services beyond specific 
uses approved in a given project.


Sec.  1487.5  Application process.

    (a) Announcement for TASC program participant. CCC will 
periodically announce that it is accepting applications for 
participation in the TASC program. All relevant information, including 
application deadlines and proposal content, will be noted in the 
announcement, and proposals must be submitted in accordance with the 
terms and conditions, as well as other requirements specified in the 
announcement and in this part. Currently, applicants are encouraged to 
submit applications through the UES system, but are not required to use 
the UES system. CCC may request any additional information it deems 
necessary from any applicant in order to properly evaluate any proposal
    (b) Universal identifier and System for Award Management (SAM). In 
accordance with 2 CFR part 25, each entity that applies to the TASC 
program and does not qualify for an exemption under 2 CFR 25.110 must:
    (1) Be registered in the SAM prior to submitting an application or 
plan;
    (2) Maintain an active SAM registration with current information at 
all times during which it has an active Federal award or an application 
or plan under consideration by CCC; and
    (3) Provide its DUNS number, or a unique identifier designated as a 
DUNS replacement, in each application or plan it submits to CCC.
    (c) Reporting subaward and executive compensation information. In 
accordance with 2 CFR part 170, each entity that applies to the TASC 
program and does not qualify for an exception under 2 CFR 170.110(b) 
must ensure it has the necessary processes and systems in place to 
comply with the applicable reporting requirements of 2 CFR part 170 
should it receive TASC funding.


Sec.  1487.6  Application review and formation of agreements.

    (a) General. Proposals received in accordance with the announcement 
and this part will undergo a multi-phase review by CCC to determine 
eligibility for the program, the qualifications, quality, and 
appropriateness of proposed projects, and the reasonableness of 
proposed project budgets.
    (b) Evaluation criteria. CCC will review all proposals for 
eligibility and completeness. CCC will evaluate and score each proposal 
against the factors described in the NOFO. The purpose of this review 
is to identify meritorious proposals, recommend an appropriate funding 
level for each proposal, and submit the proposals and funding 
recommendations to appropriate officials for decision. CCC may, when 
appropriate to the subject matter of the proposal, request the 
assistance of other U.S. Government experts in evaluating the merits of 
a proposal. Demonstration of substantial U.S. industry participation in 
or financial or other support of a proposal will be a positive factor 
in the consideration of proposals. All reviewers will be required to 
sign a conflict of interest form, and when conflicts of interests are 
identified the reviewer will be recused from the objective review 
process.
    (c) Approval decision. CCC will approve those applications that it 
determines best satisfy the criteria and factors specified in the 
announcement and this part. All decisions regarding the disposition of 
an application are final.


Sec.  1487.7  Applicant notification.

    (a) CCC will notify each applicant in writing of the final decision 
on its application. CCC will send an agreement and an approval letter 
to each approved applicant. An applicant that accepts the terms and 
conditions contained in the agreement and approval letter must so 
indicate by having the appropriate authorizing official sign the 
agreement and submit it to CCC. The applicant may not begin to 
implement approved activities until the applicant's authorizing 
official and CCC have signed the agreement. The applicant is authorized 
to begin implementation of the project as of the date specified in the 
approval letter, unless otherwise indicated.
    (b) The approval letter and agreement will outline the activities 
and budgets that are approved and will specify the terms and conditions 
applicable to the project, including the levels of TASC funding and 
cost share requirements.


Sec.  1487.8  Reimbursements and advances.

    (a) Reimbursement procedures. (1) Following the implementation of a 
project for which CCC has agreed to provide funding, a Participant may 
submit claims for reimbursement of eligible expenses incurred in 
implementing a TASC project, to the extent that CCC has agreed to pay 
such expenses. Any changes to approved activities must be approved in 
writing by CCC before any reimbursable expenses associated with the 
change can be incurred. A Participant will be reimbursed after CCC 
reviews the claim and determines that it is complete.
    (2) CCC will make all payments to the Participants in U.S. dollars. 
FAS will initiate payment within 30 days after receipt of the billing, 
unless the billing is improper.
    (3) Participants will be authorized to submit requests for 
reimbursements or advances at least monthly when electronic fund 
transfers (EFTs) are not used, and as frequently as desired when 
electronic transfers are used, in accordance with the provisions of the 
Electronic Fund Transfer Act (15 U.S.C. 1693-1693r).
    (4) Participants may submit claims for reimbursement of the 
expenses incurred in implementing TASC projects, to the

[[Page 70396]]

extent CCC has agreed to pay for such costs, limited initially to 85 
percent of the total amount specified in the agreement. The Participant 
may be reimbursed for the remaining 15 percent of the funds only after 
the final performance report containing the information required by the 
agreement is submitted to and approved by FAS.
    (5) Final claims for reimbursement must be received no later than 
90 calendar days after the completion date of the project or following 
the expiration or termination date of the agreement, whichever is 
sooner, and are subject to FAS approval of the Participant's final 
performance report. Participants are required to use a prescribed 
system to submit their claims. This system will be clearly stated in 
the NOFO. Currently the CCC's internet-based UES system is being used 
to request reimbursement for eligible TASC program expenses.
    (6) Participants shall maintain complete records of all program 
expenditures, identified by TASC agreement number, program year, 
country or region, activity number, and cost category. Such records 
shall be accompanied by documentation that supports the expenditure and 
shall be made available to CCC upon request. CCC may deny a claim for 
reimbursement if the claim is not supported by acceptable 
documentation.
    (7) In the event that a reimbursement claim is overpaid or is 
disallowed after payment already has been made, the Participant shall 
repay CCC within 30 calendar days of such overpayment or disallowance 
the amount overpaid or disallowed either by submitting a check payable 
to CCC and referencing the applicable project, or by offsetting its 
next reimbursement claim. The Participant shall make such payment in 
U.S. dollars, unless otherwise approved in advance by CCC.
    (8) The Participant shall report any actions that may have a 
bearing on the propriety of any claims for reimbursement in writing to 
the appropriate Attach[eacute]/Counselor and FAS Division Director.
    (b) Advances--(1) Policy. In general, CCC operates the TASC program 
on a cost reimbursable basis.
    (2) Exception. Upon request, CCC may make advance payments to a 
Participant against an approved project budget. Participants may 
request an advance of up to 85 percent of the funding approved in any 
given program year. Advances should be limited to the minimum amounts 
needed and requested as close as is administratively feasible to the 
actual time of disbursement by the Participant. Reimbursement claims 
will be used to offset advances. Participants shall deposit and 
maintain advances in insured, interest-bearing accounts, unless the 
exceptions in 2 CFR part 200 apply. Interest earned by the Participant 
on funds advanced by CCC is not program income. Up to $500 of interest 
earned per year may be retained by the Participant for administrative 
expenses. Any additional interest earned on Federal advance payments 
shall be remitted annually to the appropriate entity as required in 2 
CFR part 200.
    (3) Refunds due CCC. A Participant shall fully expend all advances 
on approved activities within 90 calendar days after the date of 
disbursement by CCC. By the end of 90 calendar days, the Participant 
must submit reimbursement claims to offset the advance and submit a 
check made payable to CCC for any unexpended balance. The Participant 
shall make such payment in U.S. dollars, unless otherwise approved in 
advance by CCC.


Sec.  1487.9  Reporting.

    (a) Participants are required to submit regular financial and 
performance reports in accordance with their agreement. Reporting 
requirements and formats for both annual financial and performance 
reports and final financial and performance reports will be specified 
in the agreement between CCC and the Participant.
    (b)(1) In addition to the information required in 2 CFR 
200.328(b)(2), a Participant's performance reports must include 
pertinent information regarding the Participant's progress, measured 
against established indicators, baselines, and targets, towards 
achieving the expected results specified in the agreement. This 
reporting must include, for each performance indicator, a comparison of 
actual accomplishments with the baseline and the targets established 
for the period. When actual accomplishments deviate significantly from 
targeted goals, the Participant must provide an explanation in the 
report.
    (2) A Participant must ensure the accuracy and reliability of the 
performance data submitted to FAS in performance reports. At any time 
during the period of performance of the agreement, FAS may review the 
Participant's performance data to determine whether it is accurate and 
reliable. The Participant must comply with all requests made by FAS or 
an entity designated by FAS in relation to such reviews.
    (c) All final performance reports will be made available to the 
public.
    (d) If requested by FAS, a Participant must provide to FAS 
additional information or reports relating to the agreement.
    (e) If a Participant requires an extension of a reporting deadline, 
it must ensure that FAS receives an extension request at least five 
business days prior to the reporting deadline. FAS may decline to 
consider a request for an extension that it receives after this time 
period. FAS will consider requests for reporting deadline extensions on 
a case by case basis and will make a decision based on the merits of 
each request. FAS will consider factors such as unforeseen or 
extenuating circumstances and past performance history when evaluating 
requests for extensions.


Sec.  1487.10  Notification of international travel.

    The Participant shall notify the Attach[eacute]/Counselor in the 
destination countries in writing in advance of any proposed travel by 
the Participant or its consultants or other participants. The timing of 
such notice should be far enough in advance to enable the 
Attach[eacute]/Counselor to schedule appointments, make preparations, 
or otherwise provide any assistance being requested. Failure to provide 
advance notification of travel generally will result in disallowance of 
the expenses related to the travel, unless CCC determines it was 
impractical to provide such notification.


Sec.  1487.11  Evaluation.

    Project evaluations may be carried out by CCC at its option with or 
without Participants. CCC may also seek outside expertise to conduct or 
participate in evaluations.


Sec.  1487.12  Compliance reviews and notices

    (a) Compliance review process. (1) USDA staff may conduct 
compliance reviews of Participant's activities under the TASC program 
to ensure compliance with this part, applicable Federal laws and 
regulations, and the terms of the agreements and approval letters. 
Participants shall cooperate fully with relevant USDA staff conducting 
compliance reviews and shall comply with all requests from USDA staff 
to facilitate the conduct of such reviews. Program funds spent 
inappropriately or on unapproved activities must be returned to CCC.
    (2) Any project or activity funded under the program is subject to 
review or audit at any time during the course of implementation or 
after the completion of the project.
    (3) Upon conclusion of the compliance review, USDA staff will 
provide a written compliance report to

[[Page 70397]]

the Participant. The compliance report will detail any instances where 
it appears that the Participant is not complying with any of the terms 
or conditions of the agreement, approval letter, or the applicable laws 
and regulations. The report will also specify if it appears that CCC 
may be entitled to recover funds from the Participant and will explain 
the basis for any recovery of funds from the Participant. If, as a 
result of a compliance review, CCC determines that further review is 
needed in order to ensure compliance with the requirements of the TASC 
program, CCC may require the Participant to contract for an independent 
audit.
    (4) In addition, CCC may notify a Participant in writing at any 
time if CCC determines that CCC may be entitled to recover funds from 
the Participant. CCC will explain the basis for any recovery of funds 
from the Participant in the written notice. The Participant shall, 
within 30 calendar days of the date of the notice, repay CCC the amount 
owed either by submitting a check payable to CCC or by offsetting its 
next reimbursement claim. The Participant shall make such payment in 
U.S. dollars, unless otherwise approved in advance by CCC. If, however, 
a Participant notifies CCC within 30 calendar days of the date of the 
written notice that the Participant intends to file an appeal pursuant 
to the provisions of this part, the amount owed to CCC by the 
Participant is not due until the appeal procedures are concluded and 
CCC has made a final determination as to the amount owed.
    (5) The fact that a compliance review has been conducted by USDA 
staff does not signify that a Participant is in full compliance with 
its agreement, approval letter, and/or applicable laws and regulations.
    (b) Participant response to compliance report. (1) A Participant 
shall, within 60 calendar days of the date of the issuance of a 
compliance report, submit a written response to CCC. The response may 
include additional documentation for consideration or a request for 
reconsideration of any finding along with supporting justification. If 
the Participant does not wish to contest the compliance report, the 
response shall include any money owed to CCC, which may be returned by 
submitting a check payable to CCC or by offsetting a reimbursement 
claim. The Participant shall make any payments in U.S. dollars, unless 
otherwise approved in advance by CCC. CCC, at its discretion, may 
extend the period for response.
    (2) After reviewing the response, CCC shall determine whether the 
Participant owes any funds to CCC and will inform the Participant in 
writing of the basis for the determination. CCC may initiate action to 
collect such amount by providing the Participant a written demand for 
payment of the debt pursuant to the debt settlement policies and 
procedures in 7 CFR part 1403.
    (c) Participant appeals of CCC determinations. (1) Within 30 
calendar days of the date of the issuance of a determination, the 
Participant may appeal the determination by making a request in writing 
that includes the basis for such reconsideration. The Participant may 
also request a hearing.
    (2) If the Participant requests a hearing, CCC will set a date and 
time for the hearing. The hearing will be an informal proceeding. A 
transcript will not ordinarily be prepared unless the Participant bears 
the cost of a transcript; however, CCC may, at its discretion, have a 
transcript prepared at CCC's expense.
    (3) CCC will base its final determination upon information 
contained in the administrative record. The Participant must exhaust 
all administrative remedies contained in this section before pursuing 
judicial review of a determination by CCC.


Sec.  1487.13  Records retention.

    All records related to the project, including records pertaining to 
subawards, shall be made available upon request to authorized officials 
of the U.S. Government.


Sec.  1487.14  Program income.

    Program income means gross income earned by the Participant that is 
directly generated by a supported activity or earned as a result of the 
Federal award during the period of performance. Any such income 
generated from an activity, the expenditures for which have been wholly 
or partially reimbursed with TASC funds, shall be used by the 
Participant in furtherance of its approved activities in the program 
period during which the TASC funds are available for obligation by the 
Participant, or must be returned to CCC. The use of such income shall 
be governed by this part. Reasonable activity fees or registration 
fees, if identified as such in a project budget, may be charged for 
projects approved for program funding. The intent to charge a fee must 
be part of the original proposal, along with an explanation of how such 
fees are to be used. Any activity fees charged must be used to offset 
activity expenses or returned to CCC. Such fees may not be used as 
profit or counted as cost share.


Sec.  1487.15  Subrecipients.

    (a) A Participant may utilize the services of a subrecipient to 
implement activities under the agreement if this is provided for in the 
agreement. The subrecipient may receive CCC-provided funds, program 
income, or other resources from the Participant for this purpose. The 
Participant must enter in to a written subaward with the subrecipient 
and comply with the applicable provisions of 2 CFR 200.331 and/or the 
Federal Acquisition Regulation (FAR), if applicable. If required by the 
agreement, the Participant must provide a copy of such subaward to FAS, 
in the manner set forth in the agreement, prior to the transfer of CCC-
provided funds or program income to the subrecipient.
    (b) A Participant must include the following requirements in a 
subaward:
    (1) The subrecipient is required to comply with the applicable 
provisions of this part and 2 CFR parts 200 and 400 and/or the FAR, if 
applicable. The applicable provisions are those that relate 
specifically to subrecipients, as well as those relating to non-Federal 
entities that impose requirements that would be reasonable to pass 
through to a subrecipient because they directly concern the 
implementation by the subrecipient of one or more activities under the 
agreement. If there is a question about whether a particular provision 
is applicable, FAS will make the determination.
    (2) The subrecipient must pay to the Participant the value of CCC-
provided funds, interest, or program income that are not used in 
accordance with the subaward, or that are lost, damaged, or misused as 
a result of the subrecipient's failure to exercise reasonable care.
    (3) In accordance with 2 CFR 200.501(h), subawards must include a 
description of the applicable compliance requirements and the 
subrecipient's compliance responsibility. Methods to ensure compliance 
may include pre-award audits, monitoring during the agreement, and 
post-award audits.
    (c) A Participant must monitor the actions of a subrecipient as 
necessary to ensure that CCC-provided funds and program income provided 
to the subrecipient are used for authorized purposes in compliance with 
applicable U.S. Federal laws and regulations and the subaward and that 
performance indicator targets are achieved for both activities and 
results under the agreement.
    (d) Participants have full and sole responsibility for the legal 
sufficiency of all subawards they may enter into with one or more 
subrecipients in order to

[[Page 70398]]

carry out an approved project and shall assume financial liability for 
any costs or claims resulting from suits, challenges, or other disputes 
based on subawards entered into by the Participant. Neither CCC nor any 
other agency of the United States Government nor any official or 
employee of CCC, FAS, USDA, or the United States Government has any 
obligation or responsibility with respect to Participant subawards with 
third parties.
    (e) Participants are responsible for ensuring to the greatest 
extent possible that the terms, conditions, and costs of subawards 
constitute the most economical and effective use of project funds.
    (f) All fees for professional and technical services paid to 
subrecipients in any part with project funds must be covered by written 
subawards.
    (g) A Participant shall:
    (1) Ensure that all expenditures for goods and services in excess 
of $25 reimbursed by CCC are documented by a purchase order or invoice;
    (2) Ensure that no employee, officer, board member, agent, or the 
employee's, officer's, board member's, or agent's family, partners, or 
an organization that employs or is about to employ any of the parties 
indicated herein, participates in the review, selection, award or 
administration of a subaward in which such entities or their affiliates 
have a financial or other interest;
    (3) Conduct all contracting in an openly competitive manner. 
Individuals who develop or draft specifications, requirements, 
statements of work, invitations for bids, or requests for proposals for 
procurement of any goods or services, and such individuals' families or 
partners, or an organization that employs or is about to employ any of 
the aforementioned shall be excluded from competition for such 
procurement;
    (4) Conduct all awarding of grants and agreements in an openly 
competitive manner, except under the following conditions:
    (i) Non-monetary awards of property or services;
    (ii) Awards of less than $75,000;
    (iii) Awards to fund continuing work already started under a 
previous award;
    (iv) Awards that cannot be delayed due to an emergency or a 
substantial danger to health or safety;
    (v) Awards when it is impracticable to secure competition; or
    (vi) Awards to fund unique and innovative unsolicited applications;
    (5) Base each solicitation for professional or technical services 
on a clear and accurate description of and requirements related to the 
services to be procured;
    (6) Perform and document some form of fee, price, or cost analysis, 
such as a comparison of price quotations to market prices or other 
price indicia, to determine the reasonableness of the offered fees or 
prices for procurements in excess of the simplified acquisition 
threshold defined at 2 CFR 200.88; and
    (7) Document the decision-making process.


Sec.  1487.16  Suspension and termination of agreements.

    (a) An agreement or subaward may be suspended or terminated in 
accordance with 2 CFR 200.338 or 200.339. FAS may suspend or terminate 
an agreement if it determines that:
    (1) One of the bases in 2 CFR 200.338 or 200.339 for termination or 
suspension by FAS has been satisfied; or
    (2) The continuation of the assistance provided under the agreement 
is no longer necessary or desirable.
    (b) If an agreement is terminated, the Participant:
    (1) Is responsible for using or returning any CCC-provided funds, 
interest, or program income that have not been disbursed, as agreed to 
by FAS; and
    (2) Must comply with any closeout and post-closeout procedures 
specified in the agreement and 2 CFR 200.343 and 200.344.


Sec.  1487.17  Audit requirements.

    (a) Subpart F of 2 CFR part 200 applies to all Participants and 
subrecipients under this part other than those that are for-profit 
entities, foreign public entities, or foreign organizations.
    (b) A Participant or subrecipient that is a for-profit entity or a 
subrecipient that is a foreign organization and that expends, during 
its fiscal year, a total of at least the audit requirement threshold in 
2 CFR 200.501 in Federal awards, is required to obtain an audit. Such a 
Participant or subrecipient has the following two options to satisfy 
the requirement in this paragraph (b):
    (1)(i) A financial audit of the agreement or subaward, in 
accordance with the Government Auditing Standards issued by the United 
States Government Accountability Office (GAO), if the Participant or 
subrecipient expends Federal awards under only one FAS program during 
such fiscal year; or
    (ii) A financial audit of all Federal awards from FAS, in 
accordance with GAO's Government Auditing Standards, if the Participant 
or subrecipient expends Federal awards under multiple FAS programs 
during such fiscal year; or
    (2) An audit that meets the requirements contained in subpart F of 
2 CFR part 200.
    (c) A Participant or subrecipient that is a for-profit entity or a 
subrecipient that is a foreign organization and that expends, during 
its fiscal year, a total that is less than the audit requirement 
threshold in 2 CFR 200.501 in Federal awards, is exempt from 
requirements under this section for an audit for that year, except as 
provided in paragraphs (d) and (f) of this section, but it must make 
records available for review by appropriate officials of Federal 
agencies.
    (d) FAS may require an annual financial audit of an agreement or 
subaward when the audit requirement threshold in 2 CFR 200.501 is not 
met. In that case, FAS must provide funds under the agreement for this 
purpose, and the Participant or subrecipient, as applicable, must 
arrange for such audit and submit it to FAS.
    (e) When a Participant or subrecipient that is a for-profit entity 
or a subrecipient that is a foreign organization is required to obtain 
a financial audit under this section, it must provide a copy of the 
audit to FAS within 60 days after the end of its fiscal year.
    (f) FAS, the USDA Office of Inspector General, or GAO may conduct 
or arrange for additional audits of any Participants or subrecipients, 
including for-profit entities and foreign organizations. Participants 
and subrecipients must promptly comply with all requests related to 
such audits. If FAS conducts or arranges for an additional audit, such 
as an audit with respect to a particular agreement, FAS will fund the 
full cost of such an audit, in accordance with 2 CFR 200.503(d).


Sec.  1487.18  Disclosure of program information.

    (a) Documents submitted to CCC by Participants are subject to the 
provisions of the Freedom of Information Act (FOIA), 5 U.S.C. 552, and 
7 CFR part 1, subpart A, including, specifically, 7 CFR 1.11.
    (b) Any research conducted by a Participant pursuant to an 
agreement and/or approval letter shall be subject to the provisions 
relating to intangible property in 2 CFR part 200.


Sec.  1487.19  Ethical conduct.

    (a) The Participant shall maintain written standards of conduct 
governing the performance of its employees engaged in the award and 
administration of contracts.
    (b) A Participant shall conduct its business in accordance with the 
laws and regulations of the country(s) in

[[Page 70399]]

which each activity is carried out and in accordance with applicable 
U.S. Federal, state, and local laws and regulations. A Participant 
shall conduct its business in the United States in accordance with 
applicable Federal, state, and local laws and regulations.
    (c) Neither a Participant nor its affiliates shall make export 
sales of U.S. agricultural commodities covered under the terms of an 
agreement. Neither a Participant nor its affiliates shall charge a fee 
for facilitating an export sale. A Participant may collect check-off 
funds and membership fees that are required for membership in the 
Participant's organization.
    (d) The Participant shall not use program activities or project 
funds to promote private self-interests or conduct private business.
    (e) A Participant shall not limit participation in its TASC 
activities to members of its organization. Participants shall ensure 
that their TASC-funded programs and activities are open to all 
otherwise qualified individuals and entities on an equal basis and 
without regard to any non-merit factors.
    (f) A Participant shall select U.S. agricultural industry 
representatives to participate in activities based on criteria that 
ensure participation on an equitable basis by a broad cross section of 
the U.S. industry. If requested by CCC, a Participant shall submit such 
selection criteria to CCC for approval.
    (g) The Participant must report any actions or circumstances that 
may have a bearing on the propriety of program activities to the 
appropriate Attach[eacute]/Counselor, and the Participant's U.S. office 
shall report such actions or circumstances in writing to CCC.
    (h) The officers, employees, board members, and agents of the 
Participant shall neither solicit nor accept gratuities, favors, or 
anything of monetary value from contractors, sub-contractors, or 
parties to sub-agreements. However, Participants may set standards for 
situations in which the financial interest is not substantial, or the 
gift is an unsolicited item of nominal value. The standards of conduct 
shall provide for disciplinary actions to be applied for violations of 
such standards by officers, employees, board members, or agents of the 
Participant.


Sec.  1487.20  Amendments.

    (a) Participants may request to modify approved projects if 
circumstances change in such a way that they would likely affect the 
progress and ultimate success of a project. Such modification must be 
made through a written amendment to the agreement. All requests for 
project modifications must be made in writing to CCC and must include:
    (1) A justification as to why changes to the project as originally 
designed are needed;
    (2) An explanation of the necessary adjustments in approach or 
strategy; and
    (3) A description of necessary changes in the project's time 
line(s) and/or budget (e.g., shifting of budgetary resources from one-
line item to another in order to accommodate the changes).
    (b) All requests for project modifications must be reviewed and 
approved by CCC. Upon approval, CCC will issue an amendment to the 
agreement, which must be signed by CCC and the Participant.


Sec.  1487.21  Noncompliance with an agreement.

    (a) If a Participant fails to comply with any term in its project 
agreement, approval letter, or this part, CCC may take one or more of 
the enforcement actions in 2 CFR part 200 and, if appropriate, initiate 
a claim against the Participant, following the procedures set forth in 
this part. CCC may also initiate a claim against a Participant if 
program income or CCC-provided funds are lost due to an action or 
omission of the Participant. If any Participant has engaged in fraud 
with respect to the TASC program, or has otherwise violated program 
requirements under this part, CCC may:
    (1) Hold such Participant liable for any and all losses to CCC 
resulting from such fraud or violation;
    (2) Require a refund of any assistance provided to such Participant 
plus interest as determined by FAS; and
    (3) Collect liquidated damages from such Participant in an amount 
determined appropriate by FAS.
    (b) The provisions of this section shall be without prejudice to 
any other remedy that is available under any other provision of law.


Sec.  1487.22  Paperwork reduction requirements.

    The paperwork and recordkeeping requirements imposed by this part 
have been approved by OMB under the Paperwork Reduction Act of 1980. 
OMB has assigned control number 0551-0038 for this information 
collection.

     Dated: November 27, 2019.
Margo Erny,
Acting Executive Vice President, Commodity Credit Corporation.
    In concurrence with:

    Dated: November 26, 2019.
Ken Isley,
Administrator, Foreign Agricultural Service.
[FR Doc. 2019-27248 Filed 12-20-19; 8:45 am]
 BILLING CODE 3410-10-P