[Federal Register Volume 63, Number 230 (Tuesday, December 1, 1998)]
[Rules and Regulations]
[Pages 66062-66063]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-31869]
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DEPARTMENT OF HEALTH AND HUMAN SERVICE
42 CFR Part 50
Rin 0930-2A00
Simplification of Grant Appeals Process
AGENCY: Health and Human Services Department.
ACTION: Final rule.
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SUMMARY: Pursuant to 42 CFR part 50, subpart D, the Indian Health
Service (IHS) and the Substance Abuse and Mental Health Services
Administration (SAMHSA) (formerly, the Alcohol, Drug Abuse and Mental
Health Administration) have provided an informal level of appeal on
those grant related disputes subject to the departmental appeal
procedures codified at 45 CFR part 16.\1\ The Department of Health and
Human Services is amending its regulations to remove IHSA and ADAMHA
(now SAMHSA) from the list of agencies to which those informal appeal
procedures apply and thus permit aggrieved grantees direct access to
the Departmental Appeals Board and that Board's original jurisdiction.
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\1\ Section 161 of the ADAMHA Reorganization Act, Pub. L. 102-
321 (July 10, 1992), provides that references in any regulations to
ADAMHA shall be deemed to refer to SAMHSA and, accordingly, the
informal level of appeal was available to SAMHSA's grantees.
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DATES: The regulation is effective December 31, 1998.
FOR FURTHER INFORMATION: For the Indian health Service, Ms. M. Kay
Carpentier, (301) 443-5204; for the Substance Abuse and Mental Health
Services Administration, Thomas M. Reynolds. (301) 443-0179.
SUPPLEMENTARY INFORMATION: The notice of proposed rulemaking (NPRM) was
published in the Federal Register on February 25, 1998 (Vol. 63, No.
37, pages 9499-9500). That Notice proposed to amend 42 CFR part 50,
subpart D, to eliminate the requirement that grantees must exhaust
their appeal rights at the IHS or SAMHSA level prior to bringing a
grant dispute before the Departmental Appeals Board. Accordingly, this
proposed change would permit affected grantees immediate access to the
Departmental Appeals Board. No comments were received.
Consequently, the Department is amending 42 CFR part 50, subpart D,
to remove IHS and ADAMHA (now SAMHSA) from the list of agencies to
which the regulations apply as proposed by the NPRM. As a result,
grantees wishing to appeal IHS's and SAMHSA's eligible adverse
determinations will be entitled to appeal such determinations directly
to the Departmental Appeals Board. In addition, 42 CFR part 50, subpart
D, is revised to reflect organizational changes in the Department,
particularly that pertaining to the public Health Service.
Economic Impact
This rule does not have cost implications for the economy of $100
million or otherwise meet the criteria for a major rule under Executive
Order 12291, and therefore does not require a regulation impact
analysis. Further, this regulation will not have a significant impact
on a substantial number of small entities, and therefore does not
require a regulatory flexibility analysis under the Regulatory
Flexibility Act of 1980.
Regulatory Evaluation
This final rule is not a significant regulatory action under
section 3(f) of the Executive Order 12866 and does not require an
assessment of the potential costs and benefits under section 6(a)(3) of
that Order and so has been exempted from review by the Office of
Management and Budget under that Order.
Paperwork Reduction Act
There are no new paperwork requirements subject to the Office of
Management and Budget approval under the Paperwork Reduction Act of
1980.
List of Subjects in 42 CFR Part 50
Administrative practice and procedure, Grant programs--Health,
Health care.
Approved: November 20, 1998.
Donna E. Shalala,
Secretary.
For the reasons set forth in the preamble, sub part D of part 50 of
Title 52 of the Code of Federal Regulations is amended as follows:
PART 50--[AMENDED]
1. The authority citation for part 42, Subpart D, continues to read
as follows:
Authority: Sec. 215, Public Health Service Act, 58 Stat. 690 (42
U.S.C. 216); 45 CFR 16.3(c).
2. Section 50.401 is revised to read as follows:
Sec. 50.401 What is the purpose of this subpart?
This subpart establishes an informal procedure for the resolution
of certain postaward grant and cooperative agreement disputes within
the agencies and offices identified in Sec. 50.402.
3. Section 50.402 is revised to read as follows:
Sec. 50.402 To what programs do these regulations apply?
This subpart applies to all grant and cooperative agreement
programs, except block grants, which are administered by the National
Institutes of Health; the Health Resources and Services Administration;
the Centers for Disease Control and Prevention; the Agency for Toxic
Substances and Disease Registry; the Food and Drug Administration; and
the Office of the Assistant Secretary for Public Health and Science.
For purposes of this regulation, the entities are hereinafter referred
to as ``agencies.''
4. The third sentence of Sec. 50.403 is revised to read as follows:
Sec. 50.403 What is the policy basis for these procedures?
* * * This subpart provides such an informal preliminary procedure
for resolution of disputes in order to preclude submission of cases to
the Departmental Appeals Board before an agency identified in
Sec. 50.402 has had an opportunity to review decisions of its officials
and to settle disputes with grantees.
5. In Sec. 50.404, paragraph (a) introductory text and the first
sentence of paragraph (b) are revised to read as follows:
Sec. 50.404 What disputes are covered by these procedures?
(a) These procedures are applicable to the following adverse
determinations under discretionary project grants and cooperative
agreements (both referred to in this subpart as grants) issued by the
agencies identified at Sec. 50.402;
* * * * *
(b) A determination subject to this subpart may not be reviewed by
the review committee described in Sec. 50.405 unless an officer or
employee of the agency has notified the grantee in writing of the
adverse determination. * * *
6. In Sec. 50.405, the second sentence is removed and the first
sentence is revised to read as follows:
[[Page 66063]]
Sec. 50.405 What is the structure of review committees?
The head of the agency, or his or her designee, shall appoint
review committees to review adverse determinations made by officials
for programs under their jurisdiction. * * *
7. Sec. 50.406, paragraphs (a), (c), (d) and (g) and the first
sentence of (e) are revised to read as follows:
Sec. 50.406 What are the steps in the process?
(a) A grantee with respect to whom an adverse determination
described in Sec. 50.404(a) above has been made and who desires a
review of that determination must submit a request for such review to
the head of the appropriate agency or his or her designee no later than
30 days after the written notification of the determination is
received, except that if the grantee shows good cause why an extension
of time should be granted, the head of the appropriate agency or his or
her designee may grant an extension of time.
* * * * *
(c) When a request for review has been filed under this subpart
with respect to an adverse determination, no action may be taken by the
awarding agency pursuant to such determination until the request has
been disposed of, except that the filing of the request shall not
affect any authority which the agency may have to suspend assistance or
otherwise to withhold or defer payments under the grant during
proceedings under this subpart. This paragraph does not require the
awarding agency to provide continuation funding during the appeal
process to a grantee whose noncompeting continuation award has been
denied.
(d) Upon receipt of a request for review, the head of the agency or
his or her designee will make a decision as to whether the dispute is
reviewable under this subpart and will promptly notify the grantee and
the office responsible for the adverse determination of this decision.
If the head of the agency or his or her designee determines that the
dispute is reviewable, he or she will forward the matter to the review
committee appointed under Sec. 50.405.
(e) The agency involved will provide the review committee appointed
under Sec. 50.405 with copies of all relevant background materials
(including applications(s), award(s), summary statement(s), and
correspondence) and any additional pertinent information available. * *
*
* * * * *
(g) The review committee may, at its discretion, invite the grantee
and/or the agency staff to discuss the pertinent issues with the
committee and to submit such additional information as the committee
deems appropriate.
* * * * *
[FR Doc. 98-31869 Filed 11-30-98; 8:45 am]
BILLING CODE 4162-20-M
