[Federal Register Volume 61, Number 3 (Thursday, January 4, 1996)]
[Rules and Regulations]
[Pages 250-251]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-76]
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DEPARTMENT OF AGRICULTURE
7 CFR Part 3017
RIN 0503-AA12
Nonprocurement Debarment and Suspension
AGENCY: Department of Agriculture (USDA).
ACTION: Final rule.
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SUMMARY: This final rule amends the USDA regulations that implement
Executive Order (E.O.) 12549, ``Debarment and Suspension.'' E.O. 12549
required executive departments and agencies to issue regulations,
consistent with guidelines issued by the Office of Management and
Budget (OMB), to establish governmentwide effect for an agency's
nonprocurement debarment and suspension actions. These changes will
enhance USDA participation in the governmentwide nonprocurement
debarment and suspension system by making appropriate modifications to
the coverage of the regulations and clarifying the relationship of the
regulations to other USDA procedures for establishing participant
ineligibility for specific programs.
EFFECTIVE DATE: February 5, 1996.
FOR FURTHER INFORMATION CONTACT:
Gary W. Butler, Deputy Assistant General Counsel, Office of the General
Counsel, (202) 720-2577.
SUPPLEMENTARY INFORMATION: As part of the Federal Government's
initiatives to curb fraud, waste, and abuse, E.O. 12549, ``Debarment
and Suspension,'' was signed on February 18, 1986. E.O. 12549 required
executive departments and agencies to issue regulations to establish
governmentwide effect for each agency's nonprocurement debarment and
suspension actions. Section 3 of E.O. 12549 required that such
regulations be consistent with guidelines issued by OMB.
On October 20, 1987, 20 executive departments and agencies
published a proposed common rule (52 FR 39035-39042) which implemented
the final OMB guidelines that had been published on May 29, 1987 (52 FR
20360-20369). USDA did not join the proposed common rule, but rather
published a proposed rule that addressed some problems peculiar to USDA
while being consistent with the OMB guidelines.
On May 26, 1988, 27 executive departments and agencies published a
final common rule (53 FR 19159-19211) and OMB adopted the final common
rule as its amended final guidelines. Upon reconsideration of the issue
of joining the common rule, USDA published a final rule on January 30,
1989 (54 FR 4729), which followed the text of the final common rule
published on May 26, 1988. However, USDA limited the scope of coverage
of the rule (7 CFR part 3017) to domestic assistance transactions and
added material generally to reflect internal organization and
procedures. Following extended consultations with OMB, USDA has
determined that the coverage of this rule should be amended by removing
the provision that limits the coverage of the rule to domestic
assistance transactions.
Accordingly, on September 26, 1995, USDA published in the Federal
Register (60 FR 49519-49523) a notice of proposed rule making (NPRM) to
amend 7 CFR part 3017 to make the scope of the USDA rule consistent
with the scope of the common rule as adopted by most other agencies.
USDA, however, proposed making additional specific exceptions from
coverage of the common rule, as implemented by USDA, that are deemed in
the public interest. The rational for such additional specific
exceptions from coverage was explained fully in the NPRM.
USDA solicited comments concerning our proposal for 60 days ending
November 27, 1995. We received no timely comments in response to the
NPRM. We, however, did receive one subsequent comment that was wholly
supportive of the USDA proposal. Therefore, based on the rationale set
forth in the NPRM, USDA is adopting the provisions of the proposal as
the final rule.
Impact Analysis
Executive Order 12866
This rule has been determined to be ``significant,'' and it has
been reviewed by the Office of Management and Budget.
Regulatory Flexibility Act of 1980
The Regulatory Flexibility Act of 1980 (5 U.S.C. 601 et seq.)
requires that, for each rule with a ``significant economic impact on a
substantial number of small entities,'' an analysis must be prepared
describing the rule's impact on small entities and identifying any
significant alternatives to the rule that would minimize the economic
impact on the small entities.
USDA certifies that these regulations will not have a significant
economic impact on a substantial number of small entities.
Paperwork Reduction Act
USDA certifies that this rule will not impose any reporting or
recordkeeping requirements under the Paperwork Reduction Act of 1980,
44 U.S.C. Chapter 35.
List of Subjects in 7 CFR Part 3017
Administrative practice and procedure, Grant administration, Grant
programs (Agriculture).
For the reasons set forth in the preamble, USDA amends 7 CFR part
3017 as follows:
PART 3017--GOVERNMENTWIDE DEBARMENT AND SUSPENSION (NONPROCUREMENT)
AND GOVERNMENTWIDE REQUIREMENTS FOR DRUG-FREE WORKPLACE (GRANTS)
1. The authority citation for part 3017 is revised to read as
follows:
Authority: 5 U.S.C. 301; 41 U.S.C. 701 et seq.; E.O. 12549, 51
FR 6370, 3 CFR, 1986 Comp., p. 189.
2. Section 3017.110 is amended by revising paragraph (a) (3) to
read as follows:
Sec. 3017.110 Coverage.
(a) * * *
(3) Department of Agriculture covered transactions. (i) With
respect to paragraph (a)(1) of this section, for USDA's export and
foreign assistance programs, covered transactions will include only
primary covered transactions. Any lower tier transactions with respect
to UDSA's export and foreign assistance programs will not be
[[Page 251]]
considered lower tier covered transactions for the purposes of this
part. The export or substitution of Federal timber governed by the
Forest Resources Conservation and Shortage Relief Act of 1990, 16
U.S.C. 620 et seq. (the ``Export Act''), is specifically excluded from
the coverage of this rule. The Export Act provides separate statutory
authority to debar persons engaged in both primary covered transactions
and lower tier transactions.
(ii) With respect to paragraph (a)(1)(ii)(B) of this section, for
USDA's domestic food assistance programs, only the initial such
procurement contract and the first tier subcontract under that
procurement contract shall be considered lower tier covered
transactions.
(iii) With respect to paragraph (a)(2) of this section, the
following USDA transactions also are not covered: transactions under
programs which provide statutory entitlements and make available loans
to individuals and entities in their capacity as producers of
agricultural commodities; transactions under conservation programs;
transactions under warehouse licensing programs; the receipt of
licenses, permits, certificates, and indemnification under regulatory
programs conducted in the interest of public health and safety and
animal and plant health and safety; the receipt of official grading and
inspection services, animal damage control services, public health and
safety inspection services, and animal and plant health and safety
inspection services; if the person is a State or local government, the
provision of official grading and inspection services, animal damage
control services, public health and safety inspection services, animal
and plant health and safety inspection services; and permits, licenses,
exchanges and other acquisitions of real property, rights of way, and
easements under natural resource management programs.
* * * * *
3. Section 3017.115 is amended by adding a new paragraph (d) to
read as follows:
Sec. 3017.115 Policy.
* * * * *
(d) In any case in which an administrative exclusion is considered
under an authority other than this part, USDA will initiate, where
appropriate, a debarment or suspension action under this part for the
protection of the entire Federal Government.
4. Section 3017.200 is amended by adding a new paragraph (d) to
read as follows:
Sec. 3017.200 Debarment or suspension.
* * * * *
(d) Department of Agriculture excepted transactions. With respect
to paragraph (c) of this section, the following USDA transactions also
are excepted: transactions under programs which provide statutory
entitlements and make available loans to individuals and entities in
their capacity as producers of agricultural commodities; transations
under conservation programs; transactions under warehouse licensing
programs; the receipt of licenses, permits, certificates, and
indemnification under regulatory programs conducted in the interest of
public health and safety and animal and plant health and safety; the
receipt of official grading and inspection services, animal damage
control services, public health and safety inspection services, and
animal and plant health and safety inspection services; if the person
is a State or local government, the provision of official grading and
inspection services, animal damage control services, public health and
safety inspection services, and animal and plant health and safety
inspection services; and permits, licenses, exchanges, and other
acquisitions of real property, rights of way, and easements under
natural resource management programs.
Dated: December 21, 1995.
Dan Glickman,
Secretary of Agriculture.
[FR Doc. 96-76 Filed 1-3-96; 8:45 am]
BILLING CODE 3410-01-M
