Department of Veterans Affairs Implementation of OMB Guidance on Nonprocurement Debarment and Suspension, 30239-30243 [E7-10418]
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30239
Rules and Regulations
Federal Register
Vol. 72, No. 104
Thursday, May 31, 2007
This section of the FEDERAL REGISTER
contains regulatory documents having general
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are keyed to and codified in the Code of
Federal Regulations, which is published under
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DEPARTMENT OF VETERANS
AFFAIRS
2 CFR Part 801
38 CFR Parts 36, 39, 44, 48, 49, and 51
RIN 2900–AM44
Department of Veterans Affairs
Implementation of OMB Guidance on
Nonprocurement Debarment and
Suspension
Department of Veterans Affairs.
Final rule.
AGENCY:
ACTION:
SUMMARY: The Department of Veterans
Affairs (VA) is moving its regulations on
nonprocurement debarment and
suspension from title 38, Code of
Federal Regulations (CFR), to title 2 of
the CFR, and is adopting the format
established by the Office of Management
and Budget (OMB) in its interim final
guidance on nonprocurement
debarment and suspension, and OMB’s
final guidance on those matters.
Accordingly, in this final rule, VA
adopts OMB’s guidance and
consolidates it with VA’s supplemental
nonprocurement debarment and
suspension provisions, which are
codified at 38 CFR part 44. This rule
removes part 44 and makes conforming
changes to other 38 CFR provisions.
This regulatory action is a governmentwide administrative initiative for
purposes of simplification and clarity,
and makes no substantive changes to
VA’s policy or procedures for
nonprocurement debarment and
suspension.
Effective Date: This final rule is
effective May 31, 2007.
FOR FURTHER INFORMATION CONTACT: Ms.
Katherine Faliski, Assistant Director for
Loan Policy and Valuation (262), Loan
Guaranty Service, Veterans Benefits
Administration, Department of Veterans
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DATES:
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Affairs, Washington, DC 20420, (202)
273–7369, katherine.faliski@vba.va.gov.
SUPPLEMENTARY INFORMATION: On May
11, 2004, OMB established title 2 of the
CFR with two subtitles (69 FR 26276).
Subtitle A, ‘‘Office of Management and
Budget Guidance for Grants and
Agreements,’’ contains OMB policy
guidance to Federal agencies on grants
and agreements. Subtitle B, ‘‘Federal
Agency Regulations for Grants and
Agreements,’’ contains Federal agencies’
regulations implementing the OMB
guidance, as it applies to grants and
other financial assistance agreements
and nonprocurement transactions.
On August 31, 2005, OMB published
interim final guidance for governmentwide nonprocurement debarment and
suspension in the Federal Register (70
FR 51863). The guidance is located in 2
CFR part 180. The interim final
guidance updated previous OMB
guidance that was issued pursuant to
Executive Order 12549, ‘‘Debarment and
Suspension’’ (February 18, 1986), which
gave government-wide effect to each
agency’s nonprocurement debarment
and suspension actions. Section 6 of the
Executive Order authorized OMB to
issue guidance to Executive agencies on
nonprocurement debarment and
suspension, including provisions
prescribing government-wide criteria
and minimum due process procedures.
Section 3 directed Executive agencies to
issue regulations implementing the
Executive Order that are consistent with
the OMB guidelines. The OMB guidance
at 2 CFR part 180 conforms with the
Federal agencies’ November 26, 2003,
update to the common rule on
nonprocurement debarment and
suspension (70 FR 51864).
Although substantively the same as
the common rule, OMB’s guidance was
published in a form suitable for agency
adoption, thus eliminating the need for
each agency to repeat the full text of the
OMB government-wide guidance in its
implementing regulations. This new
approach is intended to make it easier
for recipients of covered transactions or
respondents in suspension or debarment
actions to discern agency-to-agency
variations from the common rule
language; reduce the volume of Federal
regulations in the CFR; and streamline
the process for updating the
government-wide requirements on
nonprocurement debarment and
suspension. On November 15, 2006,
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OMB published a final rule adopting the
interim final guidance with changes (71
FR 66431).
This final rule moves VA’s
nonprocurement debarment and
suspension regulations to 2 CFR subtitle
B for codification with other agencies’
nonprocurement debarment and
suspension rules. This action was
required by the OMB interim final
guidance (2 CFR 180.20, 180.25, 180.30,
and 180.35). New 2 CFR part 801 adopts
the OMB guidelines with the additions
and clarifications VA made to the
common rule on nonprocurement
debarment and suspension in November
2003 (68 FR 66618), as supplemented
May 10, 2006 (71 FR 27203).
VA is removing 38 CFR part 44, the
former location of VA’s nonprocurement
debarment and suspension regulations,
and making conforming changes to 38
CFR 36.4226, 36.4337, 36.4346, 36.4349,
39.6, 48.510 and 49.13 by referencing 2
CFR parts 180 and 801, and to 38 CFR
51.210 by referencing 38 CFR part 48.
Executive Order 12866
Executive Order 12866 directs
agencies to assess all costs and benefits
of available regulatory alternatives and,
when regulation is necessary, to select
regulatory approaches that maximize
net benefits (including potential
economic, environmental, public health
and safety, and other advantages;
distributive impacts; and equity). The
Executive Order classifies a ‘‘significant
regulatory action,’’ requiring review by
OMB, unless OMB waives such review,
as any regulatory action that is likely to
result in a rule that may: (1) Have an
annual effect on the economy of $100
million or more or adversely affect in a
material way the economy, a sector of
the economy, productivity, competition,
jobs, the environment, public health or
safety, or State, local, or tribal
governments or communities; (2) create
a serious inconsistency or otherwise
interfere with an action taken or
planned by another agency; (3)
materially alter the budgetary impact of
entitlements, grants, user fees, or loan
programs or the rights and obligations of
recipients thereof; or (4) raise novel
legal or policy issues arising out of legal
mandates, the President’s priorities, or
the principles set forth in the Executive
Order.
The economic, interagency,
budgetary, legal, and policy
implications of this final rule have been
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examined and it has been determined
not to be a significant regulatory action
under Executive Order 12866.
Regulatory Flexibility Act
The initial and final regulatory
flexibility analyses requirements of
sections 603 and 604 of the Regulatory
Flexibility Act, 5 U.S.C. 601–612, are
not applicable to this rule because a
notice of proposed rulemaking is not
required for this rule. Even so, the
Secretary of Veterans Affairs hereby
certifies that this regulatory action will
not have a significant economic impact
on a substantial number of small entities
as they are defined in the Regulatory
Flexibility Act, 5 U.S.C. 601–612.
Therefore, pursuant to 5 U.S.C. 605(b),
this action is exempt from the initial
and final regulatory flexibility analysis
requirements of section 603 and 604.
Unfunded Mandates
The Unfunded Mandates Reform Act
of 1995 requires, at 2 U.S.C. 1532, that
agencies prepare an assessment of
anticipated costs and benefits before
issuing any rule that may result in the
expenditure by State, local, and tribal
governments, in the aggregate, or by the
private sector, of $100 million or more
(adjusted annually for inflation) in any
year. This final rule would have no such
effect on State, local, and tribal
governments, or on the private sector.
Paperwork Reduction Act
This regulatory action will not impose
any additional reporting or
recordkeeping requirements under the
Paperwork Reduction Act.
38 CFR Parts 48 and 49
Subparts E–H [Reserved]
Administrative practice and
procedure, Debarment and suspension,
Drug abuse, Grant programs, Loan
programs, Reporting and recordkeeping
requirements.
Subpart I—Definitions
801.930 Debarring official (Department of
Veterans Affairs supplement to
government-wide definition at 2 CFR
180.930).
801.995 Principal (Department of Veterans
Affairs supplement to government-wide
definition at 2 CFR 180.995).
801.1010 Suspending official (Department
of Veterans Affairs supplement to
government-wide definition at 2 CFR
180.1010).
38 CFR Part 51
Administrative practice and
procedure, Claims, Day care, Dental
health, Government contracts, Grant
programs-veterans, Health care, Health
facilities, Health professions, Health
records, Mental health programs,
Nursing homes, Reporting and records
keeping requirements Travel and
Transportation expenses, Veterans.
Approved: May 21, 2007.
Gordon H. Mansfield,
Deputy Secretary of Veterans Affairs.
For the reasons stated above, under
the authority of 38 U.S.C. 501, the
Department of Veterans Affairs amends
2 CFR Subtitle B and 38 CFR Chapter I
as follows:
I
Title 2—Grants and Agreements
1. Add chapter VIII, consisting of part
801, to subtitle B to read as follows:
I
CHAPTER VIII—DEPARTMENT OF
VETERANS AFFAIRS
PART 801—NONPROCUREMENT
DEBARMENT AND SUSPENSION
List of Subjects
2 CFR Part 801
Administrative practice and
procedure, Debarment and suspension,
Grant programs, Reporting and
recordkeeping requirements.
Subpart A—General
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38 CFR Part 39
Cemeteries, Grant programs-veterans,
Veterans.
38 CFR Part 44
Administrative practice and
procedures, Grant programs, Loan
programs, Reporting and recordkeeping
requirements.
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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; 38 U.S.C. 501(a) and 3703(c).
§ 801.10
Sec.
801.10 What does this part do?
801.20 Does this part apply to me?
801.30 What policies and procedures must
I follow?
38 CFR Part 36
Condominiums, Flood insurance,
Housing, Indians, Individuals with
disabilities, Loan programs-housing and
community development, Loan
programs-Indians, Loan programsveterans, Manufactured homes,
Mortgage insurance, Reporting and
recordkeeping requirements, Veterans.
Subpart J—Limited Denial of Participation
(Department of Veterans Affairs Optional
Subpart for OMB Guidance at 2 CFR Part
180).
801.1100 General.
801.1105 Cause for a limited denial of
participation.
801.1110 Scope and period of a limited
denial of participation.
801.1111 Notice.
801.1112 Conference.
801.1113 Appeal.
801.137 Who in the Department of Veterans
Affairs may grant an exception to allow
an excluded person to participate in a
covered transaction?
Subpart B—Covered Transactions
801.220 What contracts and subcontracts,
in addition to those listed in 2 CFR
180.220, are covered transactions?
Subpart C–Responsibilities of Participants
Regarding Transactions
801.332 What methods must I use to pass
requirements down to participants at
lower tiers with whom I intend to do
business?
Subpart D—Responsibilities of Federal
Agency Officials Regarding Transactions
801.437 What method do I use to
communicate to a participant the
requirements described in the OMB
guidance at 2 CFR 180.435?
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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 Department of Veterans
Affairs (VA) policies and procedures for
nonprocurement debarment and
suspension. It thereby gives regulatory
effect for the Department of Veterans
Affairs 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).
§ 801.20
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
180 (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, as supplemented by Subpart B
of this part);
(b) Respondent in a Department of
Veterans Affairs debarment or
suspension action;
(c) Department of Veterans Affairs
debarment or suspension official; or
(d) Department of Veterans affairs
grants officer, agreements officer, or
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other official authorized to enter into
any type of nonprocurement transaction
that is a covered transaction.
§ 801.30 What policies and procedures
must I follow?
For any section of OMB guidance in
Subparts A through I of 2 CFR part 180
that has no corresponding section in
this part, Department of Veterans Affairs
policies and procedures are those in the
OMB guidance. For any such section
where there is a corresponding section
in this part, the Department of Veterans
Affairs 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,
and as supplemented by the section in
this part with the same section number.
The contracts that are covered
transactions, for example, are specified
by § 180.220 of the OMB guidance (2
CFR 180.220) as supplemented by
§ 801.220 in this part (2 CFR 801.220).
Subpart A–General
§ 801.137 Who in the Department of
Veterans Affairs may grant an exception to
allow an excluded person to participate in
a covered transaction?
Within the Department of Veterans
Affairs, the Secretary of Veterans
Affairs, the Under Secretary for Health,
the Under Secretary for Benefits, and
the Under Secretary for Memorial
Affairs each has the authority to grant
an exception to allow an excluded
person to participate in a covered
transaction, as provided in the OMB
guidance at 2 CFR 180.135.
Subpart B—Covered Transactions
§ 801.220 What contracts and
subcontracts, in addition to those listed in
2 CFR 180.220, are covered transactions?
VA does not extend coverage of
nonprocurement suspension and
debarment requirements beyond firsttier procurement contracts under a
covered nonprocurement transaction,
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).
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Subpart C—Responsibilities of
Participants Regarding Transactions
§ 801.332 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
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of the OMB guidance in 2 CFR part 180,
as supplemented by this subpart.
Subpart D—Responsibilities of Federal
Agency Officials Regarding
Transactions
§ 801.437 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 must
include a term or condition in the
transaction that requires the
participant’s compliance with subpart C
of 2 CFR part 180 (as supplemented by
Subpart C of this part) and requires the
participant to include a similar term or
condition in lower-tier covered
transactions.
Subparts E–H [Reserved.]
Subpart I—Definitions
§ 801.930 Debarring official (Department of
Veterans Affairs supplement to
government-wide definition at 2 CFR
180.930).
In addition to the debarring official
listed at 2 CFR 180.930, the debarring
official for the Department of Veterans
Affairs is:
(a) For the Veterans Health
Administration, the Under Secretary for
Health;
(b) For the Veterans Benefits
Administration, the Under Secretary for
Benefits; and
(c) For the National Cemetery
Administration, the Under Secretary for
Memorial Affairs.
§ 801.995 Principal (Department of
Veterans Affairs supplement to
government-wide definition at 2 CFR
180.995.)
In addition to the principals
identified at 2 CFR 180.995, for the
Department of Veterans Affairs loan
guaranty program, principals include,
but are not limited to the following:
(a) Loan officers.
(b) Loan solicitors.
(c) Loan processors.
(d) Loan servicers.
(e) Loan supervisors.
(f) Mortgage brokers.
(g) Office managers.
(h) Staff appraisers and inspectors.
(i) Fee Appraisers and inspectors.
(j) Underwriters.
(k) Bonding companies.
(l) Real estate agents and brokers.
(m) Management and marketing
agents.
(n) Accountants, consultants,
investment bankers, architects,
engineers, attorneys, and others in a
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30241
business relationship with participants
in connection with a covered
transaction under the Department of
Veterans Affairs loan guaranty program.
(o) Contractors involved in the
construction, improvement or repair of
properties financed with Department of
Veterans Affairs guaranteed loans.
(p) Closing agents.
§ 801.1010 Suspending official
(Department of Veterans Affairs supplement
to government-wide definition at 2 CFR
180.1010).
In addition to the suspending official
listed at 2 CFR 180.1010, the
suspending official for the Department
of Veterans Affairs is:
(a) For the Veterans Health
Administration, the Under Secretary for
Health;
(b) For the Veterans Benefits
Administration, the Under Secretary for
Benefits; and
(c) For the National Cemetery
Administration, the Under Secretary for
Memorial Affairs.
Subpart J—Limited Denial of
Participation (Department of Veterans
Affairs Optional Subpart for OMB
Guidance at 2 CFR Part 180).
§ 801.1100
General.
Field facility directors are authorized
to order a limited denial of participation
affecting any participant or contractor
and its affiliates except lenders and
manufactured home manufacturers. In
each case, even if the offense or
violation is of a criminal, fraudulent or
other serious nature, the decision to
order a limited denial of participation
shall be discretionary and in the best
interests of the Government.
§ 801.1105 Cause for a limited denial of
participation.
(a) Causes. A limited denial of
participation shall be based upon
adequate evidence of any of the
following causes:
(1) Irregularities in a participant’s or
contractor’s performance in the VA loan
guaranty program;
(2) Denial of participation in programs
administered by the Department of
Housing and Urban Development or the
Department of Agriculture, Rural
Housing Service;
(3) Failure to satisfy contractual
obligations or to proceed in accordance
with contract specifications;
(4) Failure to proceed in accordance
with VA requirements or to comply
with VA regulations;
(5) Construction deficiencies deemed
by VA to be the participant’s
responsibility;
(6) Falsely certifying in connection
with any VA program, whether or not
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the certification was made directly to
VA;
(7) Commission of an offense or other
cause listed in § 180.800;
(8) Violation of any law, regulation, or
procedure relating to the application for
guaranty, or to the performance of the
obligations incurred pursuant to a
commitment to guaranty;
(9) Making or procuring to be made
any false statement for the purpose of
influencing in any way an action of the
Department.
(10) Imposition of a limited denial of
participation by any other VA field
facility.
(b) Indictment. A criminal indictment
or information shall constitute adequate
evidence for the purpose of limited
denial of participation actions.
(c) Limited denial of participation.
Imposition of a limited denial of
participation by a VA field facility shall,
at the discretion of any other VA field
facility, constitute adequate evidence for
a concurrent limited denial of
participation. Where such a concurrent
limited denial of participation is
imposed, participation may be restricted
on the same basis without the need for
an additional conference or further
hearing.
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§ 801.1110 Scope and period of a limited
denial of participation.
(a) Scope and period. The scope of a
limited denial of participation shall be
as follows:
(1) A limited denial of participation
extends only to participation in the VA
Loan Guaranty Program and shall be
effective only within the geographic
jurisdiction of the office or offices
imposing it.
(2) The sanction may be imposed for
a period not to exceed 12 months except
for unresolved construction
deficiencies. In cases involving
construction deficiencies, the builder
may be excluded for either a period not
to exceed 12 months or for an
indeterminate period which ends when
the deficiency has been corrected or
otherwise resolved in a manner
acceptable to VA.
(b) Effectiveness. The sanction shall
be effective immediately upon issuance
and shall remain effective for the
prescribed period. If the cause for the
limited denial of participation is
resolved before the expiration of the
prescribed period, the official who
imposed the sanction may terminate it.
The imposition of a limited denial of
participation shall not affect the right of
the Department to suspend or debar any
person under this part.
(c) Affiliates. An affiliate or
organizational element may be included
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in a limited denial of participation
solely on the basis of its affiliation, and
regardless of its knowledge of or
participation in the acts providing cause
for the sanction. The burden of proving
that a particular affiliate or
organizational element is capable of
meeting VA requirements and is
currently a responsible entity and not
controlled by the primary sanctioned
party (or by an entity that itself is
controlled by the primary sanctioned
party) is on the affiliate or
organizational element.
§ 801.1111
Notice.
(a) Generally. A limited denial of
participation shall be initiated by
advising a participant or contractor, and
any specifically named affiliate, by
certified mail, return receipt requested:
(1) That the sanction is effective as of
the date of the notice;
(2) Of the reasons for the sanction in
terms sufficient to put the participant or
contractor on notice of the conduct or
transaction(s) upon which it is based;
(3) Of the cause(s) relied upon under
§ 801.1105 for imposing the sanction;
(4) Of the right to request in writing,
within 30 days of receipt of the notice,
a conference on the sanction, and the
right to have such conference held
within 10 business days of receipt of the
request;
(5) Of the potential effect of the
sanction and the impact on the
participant’s or contractor’s
participation in Departmental programs,
specifying the program(s) involved and
the geographical area affected by the
action.
(b) Notification of action. After 30
days, if no conference has been
requested, the official imposing the
limited denial of participation will
notify VA Central Office of the action
taken and of the fact that no conference
has been requested. If a conference is
requested within the 30-day period, VA
Central Office need not be notified
unless a decision to affirm all or a
portion of the remaining period of
exclusion is issued. VA Central Office
will notify all VA field offices of
sanctions imposed and still in effect
under this subpart.
§ 801.1112
Conference.
Upon receipt of a request for a
conference, the official imposing the
sanction shall arrange such a conference
with the participant or contractor and
may designate another official to
conduct the conference. The participant
shall be given the opportunity to be
heard within 10 business days of receipt
of the request. This conference
precedes, and is in addition to, the
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formal hearing provided if an appeal is
taken under § 801.1113. Although
formal rules of procedure do not apply
to the conference, the participant or
contractor may be represented by
counsel and may present all relevant
information and materials to the official
or designee. After consideration of the
information and materials presented,
the official shall, in writing, advise the
participant or contractor of the decision
to withdraw, modify or affirm the
limited denial of participation. If the
decision is made to affirm all or a
portion of the remaining period of
exclusion, the participant shall be
advised of the right to request a formal
hearing in writing within 30 days of
receipt of the notice of decision. This
decision shall be issued promptly, but
in no event later than 20 days after the
conference and receipt of materials.
§ 801.1113
Appeal.
Where the decision is made to affirm
all or a portion of the remaining period
of exclusion, any participant desiring an
appeal shall file a written request for a
hearing with the Under Secretary for
Benefits, Department of Veterans
Affairs, 810 Vermont Avenue, NW.,
Washington, DC 20420. This request
shall be filed within 30 days of receipt
of the decision to affirm. If a hearing is
requested, it shall be held in accordance
with the procedures in §§ 108.825
through 108.855. Where a limited denial
of participation is followed by a
suspension or debarment, the limited
denial of participation shall be
superseded and the appeal shall be
heard solely as an appeal of the
suspension or debarment.
Title 38—Pensions, Bonuses, and
Veterans’ Relief
CHAPTER I—DEPARTMENT OF VETERANS
AFFAIRS
PART 36—LOAN GUARANTY
2. The authority citation for part 36
continues to read as follows:
I
Authority: 38 U.S.C. 501, 3701–3704, 3707,
3710–3714, 3719, 3720, 3729, 3762, unless
otherwise noted.
3. In § 36.4226, paragraph (a)(3), the
reference to ‘‘at § 44.305 of this title’’ is
revised to read ‘‘in 2 CFR parts 180 and
801’’.
I 4. In § 36.4337, paragraph (n), the
reference to ‘‘part 44 of this title’’ is
revised to read ‘‘2 CFR parts 180 and
801’’.
I 5. In § 36.4346, paragraph (g)(2), the
reference to ‘‘38 CFR 44.205 and
I
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44.305’’ is revised to read ‘‘2 CFR parts
180 and 801’’.
I 6. In § 36.4349, paragraph (a)(3), the
reference to ‘‘at § 44.305 of this title’’ is
revised to read ‘‘in 2 CFR parts 180 and
801’’.
PART 39—AID TO STATES FOR
ESTABLISHMENT, EXPANSION, AND
IMPROVEMENT OF VETERANS’
CEMETERIES
7. The authority citation for part 39
continues to read as follows:
I
8. In § 39.6, paragraph (c)(7), the
reference to ‘‘38 CFR parts 43 and 44’’
is revised to read ‘‘2 CFR parts 180 and
801 and 38 CFR part 43’’.
I
PART 44 [REMOVED]
9. Remove part 44.
PART 48—GOVERNMENTWIDE
REQUIREMENTS FOR DRUG-FREE
WORKPLACE (FINANCIAL
ASSISTANCE)
10. The authority citation for part 48
continues to read as follows:
I
Authority: 41 U.S.C. 701, et seq.; 38 U.S.C.
501.
11. In § 48.510, paragraph (c), the
reference to ‘‘38 CFR part 44’’ is revised
to read ‘‘2 CFR parts 180 and 801’’.
I
PART 49—UNIFORM ADMINISTRATIVE
REQUIREMENTS FOR GRANTS AND
AGREEMENTS WITH INSTITUTIONS
OF HIGHER EDUCATION, HOSPITALS,
AND OTHER NON-PROFIT
ORGANIZATIONS
12. The authority citation for part 49
continues to read as follows:
I
Authority: 5 U.S.C. 301; 38 U.S.C. 501,
OMB Circular A–110 (2 CFR part 215), and
as noted in specific sections.
13. In § 49.13, the reference to ‘‘part
44 of this chapter’’ is revised to read ‘‘2
CFR parts 180 and 801’’.
PART 51—PER DIEM FOR NURSING
HOME CARE OF VETERANS IN STATE
HOMES
14. The authority citation for part 51
continues to read as follows:
I
cprice-sewell on PRODPC61 with RULES
Authority: 38 U.S.C. 101, 501, 1710, 1741–
1743.
15. In § 51.210, paragraph (t), the
reference to ‘‘38 CFR part 44, section
44.100 through 44.420’’ is revised to
read ‘‘38 CFR part 48’’.
I
[FR Doc. E7–10418 Filed 5–30–07; 8:45 am]
VerDate Aug<31>2005
14:52 May 30, 2007
Jkt 211001
12 CFR Part 413
RIN 3048–ZA03
Export-Import Bank of the United
States Implementation of OMB
Guidance on Nonprocurement
Debarment and Suspension
Export-Import Bank of the
United States.
ACTION: Direct final rule.
SUMMARY: The Export-Import Bank of
the United States (Ex-Im Bank) is
establishing a new Part 3513 in 2 CFR
that adopts the Office of Management
and Budget’s (OMB’s) guidance in 2
CFR part 180, as supplemented by this
new part, as Ex-Im Bank policies and
procedures for nonprocurement
debarment and suspension. Ex-Im Bank
is also removing 12 CFR part 413, the
part containing Ex-Im Bank’s
implementation of the government-wide
common rule on nonprocurement
debarment and suspension. 2 CFR part
3513 would 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 Ex-Im
Bank policy or procedures for
nonprocurement debarment and
suspension.
The effective date for this final
rule is July 2, 2007.
FOR FURTHER INFORMATION CONTACT:
Brian J. Sonfield, Assistant General
Council for Administration, 202–565–
3439, brian.sonfield@exim.gov.
SUPPLEMENTARY INFORMATION:
DATES:
Background
I
BILLING CODE 8320–01–P
2 CFR Part 3513
AGENCY:
Authority: 38 U.S.C. 101, 501, 2408.
I
EXPORT-IMPORT BANK OF THE
UNITED STATES
Ex-Im Bank’s current regulation on
nonprocurement suspension and
debarment is found at 12 CFR part 413.
The current regulation, issued
November 26, 2003 (68 66568), is Ex-Im
Bank’s promulgation of the governmentwide ‘‘common rule’’ on this subject.
The Office of Management and Budget
(OMB) published interim final guidance
on nonprocurement debarment and
suspension in the Federal Register on
August 31, 2005 (70 FR 51863). On
November 15, 2006, OMB published a
final rule adopting the interim final
guidance with changes (71 FR 66431).
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
PO 00000
Frm 00005
Fmt 4700
Sfmt 4700
30243
publish its separate version of the same
rule. It also facilitates the ability to
update government-wide requirements
without each agency having to repromulgate its own rules.
Ex-Im Bank is therefore establishing
new 2 CFR Part 3513, which adopts as
Ex-Import Bank’s regulation the OMB
guidance set forth at 2 CFR part 180,
supplemented by a few necessary
agency-specific provisions. Current 12
CFR Part 413 is being removed. No
substantive change in Ex-Im Bank’s
nonprocurement suspension and
debarment regulation is intended by
these actions.
Ex-Im Bank is authorized and
empowered to do a general banking
business pursuant to its Charter, see 12
U.S.C. 635(a)(1), and its decisions
whether or not to extend credit in
particular cases are ‘‘committed to
agency discretion by law,’’ 5 U.S.C.
701(a)(2). Nothing contained in these
regulations is intended to limit Ex-Im
Bank’s discretion to exercise any rights,
privileges or recourse that Ex-Im Bank
deems necessary to protect the interests
and mission of Ex-Im Bank and the
interests of the United States
Government.
Executive Order 12866
OMB has determined this rule to be
non-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.
E:\FR\FM\31MYR1.SGM
31MYR1
Agencies
[Federal Register Volume 72, Number 104 (Thursday, May 31, 2007)]
[Rules and Regulations]
[Pages 30239-30243]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E7-10418]
========================================================================
Rules and Regulations
Federal Register
________________________________________________________________________
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.
The Code of Federal Regulations is sold by the Superintendent of Documents.
Prices of new books are listed in the first FEDERAL REGISTER issue of each
week.
========================================================================
Federal Register / Vol. 72, No. 104 / Thursday, May 31, 2007 / Rules
and Regulations
[[Page 30239]]
DEPARTMENT OF VETERANS AFFAIRS
2 CFR Part 801
38 CFR Parts 36, 39, 44, 48, 49, and 51
RIN 2900-AM44
Department of Veterans Affairs Implementation of OMB Guidance on
Nonprocurement Debarment and Suspension
AGENCY: Department of Veterans Affairs.
ACTION: Final rule.
-----------------------------------------------------------------------
SUMMARY: The Department of Veterans Affairs (VA) is moving its
regulations on nonprocurement debarment and suspension from title 38,
Code of Federal Regulations (CFR), to title 2 of the CFR, and is
adopting the format established by the Office of Management and Budget
(OMB) in its interim final guidance on nonprocurement debarment and
suspension, and OMB's final guidance on those matters. Accordingly, in
this final rule, VA adopts OMB's guidance and consolidates it with VA's
supplemental nonprocurement debarment and suspension provisions, which
are codified at 38 CFR part 44. This rule removes part 44 and makes
conforming changes to other 38 CFR provisions. This regulatory action
is a government-wide administrative initiative for purposes of
simplification and clarity, and makes no substantive changes to VA's
policy or procedures for nonprocurement debarment and suspension.
DATES: Effective Date: This final rule is effective May 31, 2007.
FOR FURTHER INFORMATION CONTACT: Ms. Katherine Faliski, Assistant
Director for Loan Policy and Valuation (262), Loan Guaranty Service,
Veterans Benefits Administration, Department of Veterans Affairs,
Washington, DC 20420, (202) 273-7369, katherine.faliski@vba.va.gov.
SUPPLEMENTARY INFORMATION: On May 11, 2004, OMB established title 2 of
the CFR with two subtitles (69 FR 26276). Subtitle A, ``Office of
Management and Budget Guidance for Grants and Agreements,'' contains
OMB policy guidance to Federal agencies on grants and agreements.
Subtitle B, ``Federal Agency Regulations for Grants and Agreements,''
contains Federal agencies' regulations implementing the OMB guidance,
as it applies to grants and other financial assistance agreements and
nonprocurement transactions.
On August 31, 2005, OMB published interim final guidance for
government-wide nonprocurement debarment and suspension in the Federal
Register (70 FR 51863). The guidance is located in 2 CFR part 180. The
interim final guidance updated previous OMB guidance that was issued
pursuant to Executive Order 12549, ``Debarment and Suspension''
(February 18, 1986), which gave government-wide effect to each agency's
nonprocurement debarment and suspension actions. Section 6 of the
Executive Order authorized OMB to issue guidance to Executive agencies
on nonprocurement debarment and suspension, including provisions
prescribing government-wide criteria and minimum due process
procedures. Section 3 directed Executive agencies to issue regulations
implementing the Executive Order that are consistent with the OMB
guidelines. The OMB guidance at 2 CFR part 180 conforms with the
Federal agencies' November 26, 2003, update to the common rule on
nonprocurement debarment and suspension (70 FR 51864).
Although substantively the same as the common rule, OMB's guidance
was published in a form suitable for agency adoption, thus eliminating
the need for each agency to repeat the full text of the OMB government-
wide guidance in its implementing regulations. This new approach is
intended to make it easier for recipients of covered transactions or
respondents in suspension or debarment actions to discern agency-to-
agency variations from the common rule language; reduce the volume of
Federal regulations in the CFR; and streamline the process for updating
the government-wide requirements on nonprocurement debarment and
suspension. On November 15, 2006, OMB published a final rule adopting
the interim final guidance with changes (71 FR 66431).
This final rule moves VA's nonprocurement debarment and suspension
regulations to 2 CFR subtitle B for codification with other agencies'
nonprocurement debarment and suspension rules. This action was required
by the OMB interim final guidance (2 CFR 180.20, 180.25, 180.30, and
180.35). New 2 CFR part 801 adopts the OMB guidelines with the
additions and clarifications VA made to the common rule on
nonprocurement debarment and suspension in November 2003 (68 FR 66618),
as supplemented May 10, 2006 (71 FR 27203).
VA is removing 38 CFR part 44, the former location of VA's
nonprocurement debarment and suspension regulations, and making
conforming changes to 38 CFR 36.4226, 36.4337, 36.4346, 36.4349, 39.6,
48.510 and 49.13 by referencing 2 CFR parts 180 and 801, and to 38 CFR
51.210 by referencing 38 CFR part 48.
Executive Order 12866
Executive Order 12866 directs agencies to assess all costs and
benefits of available regulatory alternatives and, when regulation is
necessary, to select regulatory approaches that maximize net benefits
(including potential economic, environmental, public health and safety,
and other advantages; distributive impacts; and equity). The Executive
Order classifies a ``significant regulatory action,'' requiring review
by OMB, unless OMB waives such review, as any regulatory action that is
likely to result in a rule that may: (1) Have an annual effect on the
economy of $100 million or more or adversely affect in a material way
the economy, a sector of the economy, productivity, competition, jobs,
the environment, public health or safety, or State, local, or tribal
governments or communities; (2) create a serious inconsistency or
otherwise interfere with an action taken or planned by another agency;
(3) materially alter the budgetary impact of entitlements, grants, user
fees, or loan programs or the rights and obligations of recipients
thereof; or (4) raise novel legal or policy issues arising out of legal
mandates, the President's priorities, or the principles set forth in
the Executive Order.
The economic, interagency, budgetary, legal, and policy
implications of this final rule have been
[[Page 30240]]
examined and it has been determined not to be a significant regulatory
action under Executive Order 12866.
Regulatory Flexibility Act
The initial and final regulatory flexibility analyses requirements
of sections 603 and 604 of the Regulatory Flexibility Act, 5 U.S.C.
601-612, are not applicable to this rule because a notice of proposed
rulemaking is not required for this rule. Even so, the Secretary of
Veterans Affairs hereby certifies that this regulatory action will not
have a significant economic impact on a substantial number of small
entities as they are defined in the Regulatory Flexibility Act, 5
U.S.C. 601-612. Therefore, pursuant to 5 U.S.C. 605(b), this action is
exempt from the initial and final regulatory flexibility analysis
requirements of section 603 and 604.
Unfunded Mandates
The Unfunded Mandates Reform Act of 1995 requires, at 2 U.S.C.
1532, that agencies prepare an assessment of anticipated costs and
benefits before issuing any rule that may result in the expenditure by
State, local, and tribal governments, in the aggregate, or by the
private sector, of $100 million or more (adjusted annually for
inflation) in any year. This final rule would have no such effect on
State, local, and tribal governments, or on the private sector.
Paperwork Reduction Act
This regulatory action will not impose any additional reporting or
recordkeeping requirements under the Paperwork Reduction Act.
List of Subjects
2 CFR Part 801
Administrative practice and procedure, Debarment and suspension,
Grant programs, Reporting and recordkeeping requirements.
38 CFR Part 36
Condominiums, Flood insurance, Housing, Indians, Individuals with
disabilities, Loan programs-housing and community development, Loan
programs-Indians, Loan programs-veterans, Manufactured homes, Mortgage
insurance, Reporting and recordkeeping requirements, Veterans.
38 CFR Part 39
Cemeteries, Grant programs-veterans, Veterans.
38 CFR Part 44
Administrative practice and procedures, Grant programs, Loan
programs, Reporting and recordkeeping requirements.
38 CFR Parts 48 and 49
Administrative practice and procedure, Debarment and suspension,
Drug abuse, Grant programs, Loan programs, Reporting and recordkeeping
requirements.
38 CFR Part 51
Administrative practice and procedure, Claims, Day care, Dental
health, Government contracts, Grant programs-veterans, Health care,
Health facilities, Health professions, Health records, Mental health
programs, Nursing homes, Reporting and records keeping requirements
Travel and Transportation expenses, Veterans.
Approved: May 21, 2007.
Gordon H. Mansfield,
Deputy Secretary of Veterans Affairs.
0
For the reasons stated above, under the authority of 38 U.S.C. 501, the
Department of Veterans Affairs amends 2 CFR Subtitle B and 38 CFR
Chapter I as follows:
Title 2--Grants and Agreements
0
1. Add chapter VIII, consisting of part 801, to subtitle B to read as
follows:
CHAPTER VIII--DEPARTMENT OF VETERANS AFFAIRS
PART 801--NONPROCUREMENT DEBARMENT AND SUSPENSION
Sec.
801.10 What does this part do?
801.20 Does this part apply to me?
801.30 What policies and procedures must I follow?
Subpart A--General
801.137 Who in the Department of Veterans Affairs may grant an
exception to allow an excluded person to participate in a covered
transaction?
Subpart B--Covered Transactions
801.220 What contracts and subcontracts, in addition to those listed
in 2 CFR 180.220, are covered transactions?
Subpart C-Responsibilities of Participants Regarding Transactions
801.332 What methods must I use to pass requirements down to
participants at lower tiers with whom I intend to do business?
Subpart D--Responsibilities of Federal Agency Officials Regarding
Transactions
801.437 What method do I use to communicate to a participant the
requirements described in the OMB guidance at 2 CFR 180.435?
Subparts E-H [Reserved]
Subpart I--Definitions
801.930 Debarring official (Department of Veterans Affairs
supplement to government-wide definition at 2 CFR 180.930).
801.995 Principal (Department of Veterans Affairs supplement to
government-wide definition at 2 CFR 180.995).
801.1010 Suspending official (Department of Veterans Affairs
supplement to government-wide definition at 2 CFR 180.1010).
Subpart J--Limited Denial of Participation (Department of Veterans
Affairs Optional Subpart for OMB Guidance at 2 CFR Part 180).
801.1100 General.
801.1105 Cause for a limited denial of participation.
801.1110 Scope and period of a limited denial of participation.
801.1111 Notice.
801.1112 Conference.
801.1113 Appeal.
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; 38 U.S.C. 501(a) and 3703(c).
Sec. 801.10 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 Department of Veterans Affairs (VA) policies and
procedures for nonprocurement debarment and suspension. It thereby
gives regulatory effect for the Department of Veterans Affairs 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. 801.20 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 180 (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, as supplemented by Subpart B of this
part);
(b) Respondent in a Department of Veterans Affairs debarment or
suspension action;
(c) Department of Veterans Affairs debarment or suspension
official; or
(d) Department of Veterans affairs grants officer, agreements
officer, or
[[Page 30241]]
other official authorized to enter into any type of nonprocurement
transaction that is a covered transaction.
Sec. 801.30 What policies and procedures must I follow?
For any section of OMB guidance in Subparts A through I of 2 CFR
part 180 that has no corresponding section in this part, Department of
Veterans Affairs policies and procedures are those in the OMB guidance.
For any such section where there is a corresponding section in this
part, the Department of Veterans Affairs 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, and as supplemented by the section in this part with the same
section number. The contracts that are covered transactions, for
example, are specified by Sec. 180.220 of the OMB guidance (2 CFR
180.220) as supplemented by Sec. 801.220 in this part (2 CFR 801.220).
Subpart A-General
Sec. 801.137 Who in the Department of Veterans Affairs may grant an
exception to allow an excluded person to participate in a covered
transaction?
Within the Department of Veterans Affairs, the Secretary of
Veterans Affairs, the Under Secretary for Health, the Under Secretary
for Benefits, and the Under Secretary for Memorial Affairs each has the
authority to grant an exception to allow an excluded person to
participate in a covered transaction, as provided in the OMB guidance
at 2 CFR 180.135.
Subpart B--Covered Transactions
Sec. 801.220 What contracts and subcontracts, in addition to those
listed in 2 CFR 180.220, are covered transactions?
VA does not extend coverage of nonprocurement suspension and
debarment requirements beyond first-tier procurement contracts under a
covered nonprocurement transaction, 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).
Subpart C--Responsibilities of Participants Regarding Transactions
Sec. 801.332 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, as supplemented by this subpart.
Subpart D--Responsibilities of Federal Agency Officials Regarding
Transactions
Sec. 801.437 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 must include a term or condition in
the transaction that requires the participant's compliance with subpart
C of 2 CFR part 180 (as supplemented by Subpart C of this part) and
requires the participant to include a similar term or condition in
lower-tier covered transactions.
Subparts E-H [Reserved.]
Subpart I--Definitions
Sec. 801.930 Debarring official (Department of Veterans Affairs
supplement to government-wide definition at 2 CFR 180.930).
In addition to the debarring official listed at 2 CFR 180.930, the
debarring official for the Department of Veterans Affairs is:
(a) For the Veterans Health Administration, the Under Secretary for
Health;
(b) For the Veterans Benefits Administration, the Under Secretary
for Benefits; and
(c) For the National Cemetery Administration, the Under Secretary
for Memorial Affairs.
Sec. 801.995 Principal (Department of Veterans Affairs supplement to
government-wide definition at 2 CFR 180.995.)
In addition to the principals identified at 2 CFR 180.995, for the
Department of Veterans Affairs loan guaranty program, principals
include, but are not limited to the following:
(a) Loan officers.
(b) Loan solicitors.
(c) Loan processors.
(d) Loan servicers.
(e) Loan supervisors.
(f) Mortgage brokers.
(g) Office managers.
(h) Staff appraisers and inspectors.
(i) Fee Appraisers and inspectors.
(j) Underwriters.
(k) Bonding companies.
(l) Real estate agents and brokers.
(m) Management and marketing agents.
(n) Accountants, consultants, investment bankers, architects,
engineers, attorneys, and others in a business relationship with
participants in connection with a covered transaction under the
Department of Veterans Affairs loan guaranty program.
(o) Contractors involved in the construction, improvement or repair
of properties financed with Department of Veterans Affairs guaranteed
loans.
(p) Closing agents.
Sec. 801.1010 Suspending official (Department of Veterans Affairs
supplement to government-wide definition at 2 CFR 180.1010).
In addition to the suspending official listed at 2 CFR 180.1010,
the suspending official for the Department of Veterans Affairs is:
(a) For the Veterans Health Administration, the Under Secretary for
Health;
(b) For the Veterans Benefits Administration, the Under Secretary
for Benefits; and
(c) For the National Cemetery Administration, the Under Secretary
for Memorial Affairs.
Subpart J--Limited Denial of Participation (Department of Veterans
Affairs Optional Subpart for OMB Guidance at 2 CFR Part 180).
Sec. 801.1100 General.
Field facility directors are authorized to order a limited denial
of participation affecting any participant or contractor and its
affiliates except lenders and manufactured home manufacturers. In each
case, even if the offense or violation is of a criminal, fraudulent or
other serious nature, the decision to order a limited denial of
participation shall be discretionary and in the best interests of the
Government.
Sec. 801.1105 Cause for a limited denial of participation.
(a) Causes. A limited denial of participation shall be based upon
adequate evidence of any of the following causes:
(1) Irregularities in a participant's or contractor's performance
in the VA loan guaranty program;
(2) Denial of participation in programs administered by the
Department of Housing and Urban Development or the Department of
Agriculture, Rural Housing Service;
(3) Failure to satisfy contractual obligations or to proceed in
accordance with contract specifications;
(4) Failure to proceed in accordance with VA requirements or to
comply with VA regulations;
(5) Construction deficiencies deemed by VA to be the participant's
responsibility;
(6) Falsely certifying in connection with any VA program, whether
or not
[[Page 30242]]
the certification was made directly to VA;
(7) Commission of an offense or other cause listed in Sec.
180.800;
(8) Violation of any law, regulation, or procedure relating to the
application for guaranty, or to the performance of the obligations
incurred pursuant to a commitment to guaranty;
(9) Making or procuring to be made any false statement for the
purpose of influencing in any way an action of the Department.
(10) Imposition of a limited denial of participation by any other
VA field facility.
(b) Indictment. A criminal indictment or information shall
constitute adequate evidence for the purpose of limited denial of
participation actions.
(c) Limited denial of participation. Imposition of a limited denial
of participation by a VA field facility shall, at the discretion of any
other VA field facility, constitute adequate evidence for a concurrent
limited denial of participation. Where such a concurrent limited denial
of participation is imposed, participation may be restricted on the
same basis without the need for an additional conference or further
hearing.
Sec. 801.1110 Scope and period of a limited denial of participation.
(a) Scope and period. The scope of a limited denial of
participation shall be as follows:
(1) A limited denial of participation extends only to participation
in the VA Loan Guaranty Program and shall be effective only within the
geographic jurisdiction of the office or offices imposing it.
(2) The sanction may be imposed for a period not to exceed 12
months except for unresolved construction deficiencies. In cases
involving construction deficiencies, the builder may be excluded for
either a period not to exceed 12 months or for an indeterminate period
which ends when the deficiency has been corrected or otherwise resolved
in a manner acceptable to VA.
(b) Effectiveness. The sanction shall be effective immediately upon
issuance and shall remain effective for the prescribed period. If the
cause for the limited denial of participation is resolved before the
expiration of the prescribed period, the official who imposed the
sanction may terminate it. The imposition of a limited denial of
participation shall not affect the right of the Department to suspend
or debar any person under this part.
(c) Affiliates. An affiliate or organizational element may be
included in a limited denial of participation solely on the basis of
its affiliation, and regardless of its knowledge of or participation in
the acts providing cause for the sanction. The burden of proving that a
particular affiliate or organizational element is capable of meeting VA
requirements and is currently a responsible entity and not controlled
by the primary sanctioned party (or by an entity that itself is
controlled by the primary sanctioned party) is on the affiliate or
organizational element.
Sec. 801.1111 Notice.
(a) Generally. A limited denial of participation shall be initiated
by advising a participant or contractor, and any specifically named
affiliate, by certified mail, return receipt requested:
(1) That the sanction is effective as of the date of the notice;
(2) Of the reasons for the sanction in terms sufficient to put the
participant or contractor on notice of the conduct or transaction(s)
upon which it is based;
(3) Of the cause(s) relied upon under Sec. 801.1105 for imposing
the sanction;
(4) Of the right to request in writing, within 30 days of receipt
of the notice, a conference on the sanction, and the right to have such
conference held within 10 business days of receipt of the request;
(5) Of the potential effect of the sanction and the impact on the
participant's or contractor's participation in Departmental programs,
specifying the program(s) involved and the geographical area affected
by the action.
(b) Notification of action. After 30 days, if no conference has
been requested, the official imposing the limited denial of
participation will notify VA Central Office of the action taken and of
the fact that no conference has been requested. If a conference is
requested within the 30-day period, VA Central Office need not be
notified unless a decision to affirm all or a portion of the remaining
period of exclusion is issued. VA Central Office will notify all VA
field offices of sanctions imposed and still in effect under this
subpart.
Sec. 801.1112 Conference.
Upon receipt of a request for a conference, the official imposing
the sanction shall arrange such a conference with the participant or
contractor and may designate another official to conduct the
conference. The participant shall be given the opportunity to be heard
within 10 business days of receipt of the request. This conference
precedes, and is in addition to, the formal hearing provided if an
appeal is taken under Sec. 801.1113. Although formal rules of
procedure do not apply to the conference, the participant or contractor
may be represented by counsel and may present all relevant information
and materials to the official or designee. After consideration of the
information and materials presented, the official shall, in writing,
advise the participant or contractor of the decision to withdraw,
modify or affirm the limited denial of participation. If the decision
is made to affirm all or a portion of the remaining period of
exclusion, the participant shall be advised of the right to request a
formal hearing in writing within 30 days of receipt of the notice of
decision. This decision shall be issued promptly, but in no event later
than 20 days after the conference and receipt of materials.
Sec. 801.1113 Appeal.
Where the decision is made to affirm all or a portion of the
remaining period of exclusion, any participant desiring an appeal shall
file a written request for a hearing with the Under Secretary for
Benefits, Department of Veterans Affairs, 810 Vermont Avenue, NW.,
Washington, DC 20420. This request shall be filed within 30 days of
receipt of the decision to affirm. If a hearing is requested, it shall
be held in accordance with the procedures in Sec. Sec. 108.825 through
108.855. Where a limited denial of participation is followed by a
suspension or debarment, the limited denial of participation shall be
superseded and the appeal shall be heard solely as an appeal of the
suspension or debarment.
Title 38--Pensions, Bonuses, and Veterans' Relief
CHAPTER I--DEPARTMENT OF VETERANS AFFAIRS
PART 36--LOAN GUARANTY
0
2. The authority citation for part 36 continues to read as follows:
Authority: 38 U.S.C. 501, 3701-3704, 3707, 3710-3714, 3719,
3720, 3729, 3762, unless otherwise noted.
0
3. In Sec. 36.4226, paragraph (a)(3), the reference to ``at Sec.
44.305 of this title'' is revised to read ``in 2 CFR parts 180 and
801''.
0
4. In Sec. 36.4337, paragraph (n), the reference to ``part 44 of this
title'' is revised to read ``2 CFR parts 180 and 801''.
0
5. In Sec. 36.4346, paragraph (g)(2), the reference to ``38 CFR 44.205
and
[[Page 30243]]
44.305'' is revised to read ``2 CFR parts 180 and 801''.
0
6. In Sec. 36.4349, paragraph (a)(3), the reference to ``at Sec.
44.305 of this title'' is revised to read ``in 2 CFR parts 180 and
801''.
PART 39--AID TO STATES FOR ESTABLISHMENT, EXPANSION, AND
IMPROVEMENT OF VETERANS' CEMETERIES
0
7. The authority citation for part 39 continues to read as follows:
Authority: 38 U.S.C. 101, 501, 2408.
0
8. In Sec. 39.6, paragraph (c)(7), the reference to ``38 CFR parts 43
and 44'' is revised to read ``2 CFR parts 180 and 801 and 38 CFR part
43''.
PART 44 [REMOVED]
0
9. Remove part 44.
PART 48--GOVERNMENTWIDE REQUIREMENTS FOR DRUG-FREE WORKPLACE
(FINANCIAL ASSISTANCE)
0
10. The authority citation for part 48 continues to read as follows:
Authority: 41 U.S.C. 701, et seq.; 38 U.S.C. 501.
0
11. In Sec. 48.510, paragraph (c), the reference to ``38 CFR part 44''
is revised to read ``2 CFR parts 180 and 801''.
PART 49--UNIFORM ADMINISTRATIVE REQUIREMENTS FOR GRANTS AND
AGREEMENTS WITH INSTITUTIONS OF HIGHER EDUCATION, HOSPITALS, AND
OTHER NON-PROFIT ORGANIZATIONS
0
12. The authority citation for part 49 continues to read as follows:
Authority: 5 U.S.C. 301; 38 U.S.C. 501, OMB Circular A-110 (2
CFR part 215), and as noted in specific sections.
0
13. In Sec. 49.13, the reference to ``part 44 of this chapter'' is
revised to read ``2 CFR parts 180 and 801''.
PART 51--PER DIEM FOR NURSING HOME CARE OF VETERANS IN STATE HOMES
0
14. The authority citation for part 51 continues to read as follows:
Authority: 38 U.S.C. 101, 501, 1710, 1741-1743.
0
15. In Sec. 51.210, paragraph (t), the reference to ``38 CFR part 44,
section 44.100 through 44.420'' is revised to read ``38 CFR part 48''.
[FR Doc. E7-10418 Filed 5-30-07; 8:45 am]
BILLING CODE 8320-01-P