Trafficking in Persons: Grants and Cooperative Agreements, 63783-63785 [E7-22056]

Download as PDF 63783 Rules and Regulations Federal Register Vol. 72, No. 218 Tuesday, November 13, 2007 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. OFFICE OF MANAGEMENT AND BUDGET your name, title, organization, postal address, telephone number, and e-mail address in the text of the message. Comments may also be submitted via facsimile to (202) 395–3952 or by mail at 725 17th St., NW., Room 6025, Washington, DC 20503. FOR FURTHER INFORMATION CONTACT: Marguerite Pridgen, Office of Federal Financial Management, Office of Management and Budget, telephone (202) 395–7844 (direct) or (202) 395– 3993 (main office) and e-mail: mpridgen@omb.eop.gov. 2 CFR Part 175 SUPPLEMENTARY INFORMATION: Trafficking in Persons: Grants and Cooperative Agreements I. Background Office of Federal Financial Management, Office of Management and Budget. ACTION: Interim final guidance. rfrederick on PROD1PC67 with RULES AGENCY: SUMMARY: The Office of Federal Financial Management (OFFM) is establishing a government-wide award term for agencies to include in grants and cooperative agreements as part of their implementation of paragraph (g) of section 106 of the Trafficking Victims Protection Act of 2000, as amended (22 U.S.C. 7104). In each award under which funding is provided to a private entity, the statute requires the awarding agency to include a condition authorizing termination of the award if the recipient or a subrecipient engages in certain activities related to trafficking in persons. DATES: The effective date for this interim final guidance is December 13, 2007. To be considered in preparation of the final guidance, comments on the interim final guidance must be received by January 14, 2008. ADDRESSES: Due to potential delays in OMB’s receipt and processing of mail sent through the U.S. Postal Service, we encourage respondents to submit comments electronically to ensure timely receipt. We cannot guarantee that comments mailed will be received before the comment closing date. Electronic mail comments may be submitted to: mpridgen@omb.eop.gov. Please include ‘‘OMB Trafficking in Persons guidance’’ in the subject line of your e-mail message. Also, please include the full body of your comments in the text of the electronic message, as well as in an attachment. Please include VerDate Aug<31>2005 14:06 Nov 09, 2007 Jkt 214001 In the Trafficking Victims Protection Reauthorization Act of 2003 (Pub. L. 108–193, § 3), Congress amended the Trafficking Victims Protection Act of 2000 (TVPA; Pub. L. No. 106–386, Div. A). One of the amendments was the addition of a new paragraph (g) to section 106 of the TVPA (Section 106 is codified at 22 U.S.C. 7104). Paragraph (g) provides that: ‘‘Any grant, contract, or cooperative agreement provided or entered into by a Federal department or agency under which funds are to be provided to a private entity, in whole or in part, shall include a condition that authorizes the department or agency to terminate the grant, contract, or cooperative agreement, without penalty, if the grantee or any subgrantee, or the contractor or any subcontractor (i) engages in severe forms of trafficking in persons or has procured a commercial sex act during the period of time that the grant, contract, or cooperative agreement is in effect, or (ii) uses forced labor in the performance of the grant, contract, or cooperative agreement.’’ As originally added in 2003, subsection (g) applied to ‘‘funds made available to carry out any program, project, or activity abroad funded under major functional budget category 150 (relating to international affairs).’’ Following the enactment of the 2003 Act, the President issued Executive Order (EO) No. 13333 (69 FR 13455; March 23, 2004), which implemented this new subsection 106(g) by amending EO No. 13257. One of the amendments to EO 13257 was the addition of a new Section 5 (‘‘Enhanced Prevention of Trafficking in Persons’’), which provides in part that ‘‘[e]ach affected executive branch department or agency shall implement, within that department or agency, the requirements set out in section 106(g) of the Act with PO 00000 Frm 00001 Fmt 4700 Sfmt 4700 respect to grants and cooperative agreements.’’ Section 106(g) was subsequently amended in the Trafficking Victims Protection Reauthorization Act of 2005 (Pub. L. No. 109–164). Section 201(b) of this Act repealed the language that had previously stated that subsection (g) applied with respect to ‘‘category 150’’ funding. As a result, section 106(g) now applies to all Federal grants and cooperative agreements under which funds would be provided to private entities. In implementing Section 106(g), as amended, it is important to ensure effective government-wide implementation of this national policy. To that end, we are issuing, on an interim final basis, a Government-wide standard award term (and related guidance) on trafficking in persons for agencies to include in their grants and cooperative agreements. This award term was developed by an interagency workgroup under the Grants Policy Committee of the Chief Financial Officers Council. II. Next Steps We will consider all comments received on the interim final version of the OMB guidance as we develop the final guidance. Federal agencies that award grants or cooperative agreements will implement the guidance through appropriate regulations and award terms. List of Subjects in 2 CFR Part 175 Administrative practice and procedure, Colleges and universities, Cooperative agreements, Grant programs, Grants administration, Hospitals, Indians—tribal government, Industry, Nonprofit organizations, State and local governments, Trafficking in persons. Danny Werfel, Acting Controller. For the reasons set forth above, the Office of Management and Budget amends 2 CFR chapter I by adding a part 175 to read as follows: I PART 175—AWARD TERM FOR TRAFFICKING IN PERSONS Sec. 175.5 Purpose of this part. 175.10 Statutory requirement. 175.15 Award term. E:\FR\FM\13NOR1.SGM 13NOR1 63784 175.20 175.25 Federal Register / Vol. 72, No. 218 / Tuesday, November 13, 2007 / Rules and Regulations Referral. Definitions. Authority: 22 U.S.C. 7104(g); 31 U.S.C. 503; 31 U.S.C. 1111; 41 U.S.C. 405; Reorganization Plan No. 2 of 1970; E.O. 11541, 35 FR 10737, 3 CFR, 1966–1970, p. 939. § 175.5 Purpose of this part. This part establishes a Governmentwide award term for grants and cooperative agreements to implement the requirement in paragraph (g) of section 106 of the Trafficking Victims Protection Act of 2000 (TVPA), as amended (22 U.S.C. 7104(g)). § 175.10 Statutory requirement. In each agency award (i.e., grant or cooperative agreement) under which funding is provided to a private entity, section 106(g) of the TVPA, as amended, requires the agency to include a condition that authorizes the agency to terminate the award, without penalty, if the recipient or a subrecipient— (a) Engages in severe forms of trafficking in persons during the period of time that the award is in effect; (b) Procures a commercial sex act during the period of time that the award is in effect; or (c) Uses forced labor in the performance of the award or subawards under the award. § 175.15 Award term. rfrederick on PROD1PC67 with RULES (a) To implement the trafficking in persons requirement in section 106(g) of the TVPA, as amended, a Federal awarding agency must include the award term in paragraph (b) of this section in— (1) A grant or cooperative agreement to a private entity, as defined in § 175.25(d); and (2) A grant or cooperative agreement to a State, local government, Indian tribe or foreign public entity, if funding could be provided under the award to a private entity as a subrecipient. (b) The award term that an agency must include, as described in paragraph (a) of this section, is: I. Trafficking in persons. a. Provisions applicable to a recipient that is a private entity. 1. You as the recipient, your employees, subrecipients under this award, and subrecipients’ employees may not— i. Engage in severe forms of trafficking in persons during the period of time that the award is in effect; ii. Procure a commercial sex act during the period of time that the award is in effect; or iii. Use forced labor in the performance of the award or subawards under the award. 2. We as the Federal awarding agency may unilaterally terminate this award, without VerDate Aug<31>2005 14:06 Nov 09, 2007 Jkt 214001 penalty, if you or a subrecipient that is a private entity — i. Is determined to have violated a prohibition in paragraph a.1 of this award term; or ii. Has an employee who is determined by the agency official authorized to terminate the award to have violated a prohibition in paragraph a.1 of this award term through conduct that is either— A. Associated with performance under this award; or B. Imputed to you or the subrecipient using the standards and due process for imputing the conduct of an individual to an organization that are provided in 2 CFR part 180, ‘‘OMB Guidelines to Agencies on Governmentwide Debarment and Suspension (Nonprocurement),’’ as implemented by our agency at [agency must insert reference here to its regulatory implementation of the OMB guidelines in 2 CFR part 180 (e.g., ‘‘2 CFR part XX’’)]. b. Provision applicable to a recipient other than a private entity. We as the Federal awarding agency may unilaterally terminate this award, without penalty, if a subrecipient that is a private entity— 1. Is determined to have violated an applicable prohibition in paragraph a.1 of this award term; or 2. Has an employee who is determined by the agency official authorized to terminate the award to have violated an applicable prohibition in paragraph a.1 of this award term through conduct that is either— i. Associated with performance under this award; or ii. Imputed to the subrecipient using the standards and due process for imputing the conduct of an individual to an organization that are provided in 2 CFR part 180, ‘‘OMB Guidelines to Agencies on Governmentwide Debarment and Suspension (Nonprocurement),’’ as implemented by our agency at [agency must insert reference here to its regulatory implementation of the OMB guidelines in 2 CFR part 180 (e.g., ‘‘2 CFR part XX’’)]. c. Provisions applicable to any recipient. 1. You must inform us immediately of any information you receive from any source alleging a violation of a prohibition in paragraph a.1 of this award term. 2. Our right to terminate unilaterally that is described in paragraph a.2 or b of this section: i. Implements section 106(g) of the Trafficking Victims Protection Act of 2000 (TVPA), as amended (22 U.S.C. 7104(g)), and ii. Is in addition to all other remedies for noncompliance that are available to us under this award. 3. You must include the requirements of paragraph a.1 of this award term in any subaward you make to a private entity. d. Definitions. For purposes of this award term: 1. ‘‘Employee’’ means either: i. An individual employed by you or a subrecipient who is engaged in the performance of the project or program under this award; or ii. Another person engaged in the performance of the project or program under this award and not compensated by you PO 00000 Frm 00002 Fmt 4700 Sfmt 4700 including, but not limited to, a volunteer or individual whose services are contributed by a third party as an in-kind contribution toward cost sharing or matching requirements. 2. ‘‘Forced labor’’ means labor obtained by any of the following methods: the recruitment, harboring, transportation, provision, or obtaining of a person for labor or services, through the use of force, fraud, or coercion for the purpose of subjection to involuntary servitude, peonage, debt bondage, or slavery. 3. ‘‘Private entity’’: i. Means any entity other than a State, local government, Indian tribe, or foreign public entity, as those terms are defined in 2 CFR 175.25. ii. Includes: A. A nonprofit organization, including any nonprofit institution of higher education, hospital, or tribal organization other than one included in the definition of Indian tribe at 2 CFR 175.25(b). B. A for-profit organization. 4. ‘‘Severe forms of trafficking in persons,’’ ‘‘commercial sex act,’’ and ‘‘coercion’’ have the meanings given at section 103 of the TVPA, as amended (22 U.S.C. 7102). (c) An agency may use different letters and numbers to designate the paragraphs of the award term in paragraph (b) of this section, if necessary, to conform the system of paragraph designations with the one used in other terms and conditions in the agency’s awards. § 175.20 Referral. An agency official should inform the agency’s suspending or debarring official if he or she terminates an award based on a violation of a prohibition contained in the award term under § 175.15. § 175.25 Definitions. Terms used in this part are defined as follows: (a) Foreign public entity means: (1) A foreign government or foreign governmental entity; (2) A public international organization, which is an organization entitled to enjoy privileges, exemptions, and immunities as an international organization under the International Organizations Immunities Act (22 U.S.C. 288–288f); (3) An entity owned (in whole or in part) or controlled by a foreign government; and (4) Any other entity consisting wholly or partially of one or more foreign governments or foreign governmental entities. (b) Indian tribe means any Indian tribe, band, nation, or other organized group or community, including any Alaskan Native village or regional or village corporation (as defined in, or established under, the Alaskan Native E:\FR\FM\13NOR1.SGM 13NOR1 Federal Register / Vol. 72, No. 218 / Tuesday, November 13, 2007 / Rules and Regulations Claims Settlement Act (43 U.S.C. 1601, et seq.)) that is recognized by the United States as eligible for the special programs and services provided by the United States to Indians because of their status as Indians. (c) Local government means a: (1) County; (2) Borough; (3) Municipality; (4) City; (5) Town; (6) Township; (7) Parish; (8) Local public authority, including any public housing agency under the United States Housing Act of 1937; (9) Special district; (10) School district; (11) Intrastate district; (12) Council of governments, whether or not incorporated as a nonprofit corporation under State law; and (13) Any other instrumentality of a local government. (d) Private entity. (1) This term means any entity other than a State, local government, Indian tribe, or foreign public entity. (2) This term includes: (i) A nonprofit organization, including any nonprofit institution of higher education, hospital, or tribal organization other than one included in the definition of Indian tribe in paragraph (b) of this section. (ii) A for-profit organization. (e) State, consistent with the definition in section 103 of the TVPA, as amended (22 U.S.C. 7102), means: (1) Any State of the United States; (2) The District of Columbia; (3) Any agency or instrumentality of a State other than a local government or State-controlled institution of higher education; (4) The Commonwealths of Puerto Rico and the Northern Mariana Islands; and (5) The United States Virgin Islands, Guam, American Samoa, and a territory or possession of the United States. rfrederick on PROD1PC67 with RULES [FR Doc. E7–22056 Filed 11–9–07; 8:45 am] BILLING CODE 3110–01–P VerDate Aug<31>2005 14:06 Nov 09, 2007 Jkt 214001 DEPARTMENT OF AGRICULTURE Food and Nutrition Service 7 CFR Parts 210, 215, 220, 235 and 245 [FNS–2007–0023] RIN 0584–AD54 Applying for Free and Reduced Price Meals in the National School Lunch Program and School Breakfast Program and for Benefits in the Special Milk Program and Technical Amendments Food and Nutrition Service, USDA. ACTION: Interim Rule. AGENCY: SUMMARY: This interim rule amends the regulations on eligibility determinations for free and reduced price school meals to implement nondiscretionary provisions of the Child Nutrition and WIC Reauthorization Act of 2004. In this interim rule, the statutory definition of ‘‘local educational agency’’ is added. In addition, this interim rule specifies that a family only has to submit one application for all children in the household as long as they attend schools in the same local educational agency and requires enhancement of the descriptive materials distributed to families. This rule provides for electronically-submitted applications, addresses electronic signatures and establishes use and disclosure standards for such applications. This rule establishes that eligibility for free or reduced price school meals remains valid for one year unless the household chooses to decline a level of benefits. These changes are intended to provide children with increased access to the school nutrition programs by simplifying the certification process, streamlining program operations and improving program management. DATES: Effective date: This rule is effective December 13, 2007. Comment date: To be assured of consideration, mailed comments must be postmarked on or before May 12, 2008; e-mailed or faxed comments must be submitted by 11:59 p.m. May 12, 2008; and hand-delivered comments must be received by 5 p.m. May 12, 2008. ADDRESSES: The Food and Nutrition Service invites interested persons to submit comments on this interim rule. Comments may be submitted by any of the following methods: • Federal eRulemaking Portal: Go to http://www.regulations.gov. Follow the online instructions for submitting comments. PO 00000 Frm 00003 Fmt 4700 Sfmt 4700 63785 • Mail: Address comments to Mr. Robert M. Eadie, Chief, Policy and Program Planning Branch, Child Nutrition Division, Food and Nutrition Service, Department of Agriculture, 3101 Park Center Drive, Room 640, Alexandria, Virginia 22302–1594. • Fax: Submit comments by facsimile transmission to: (703) 305–2879, attention Mr. Robert M. Eadie. • Hand Delivery or Courier: Deliver comments to 3101 Park Center Drive, Room 640, Alexandria, Virginia 22302– 1594, during normal business hours of 8:30 a.m.–5 p.m. All comments submitted in response to this interim rule will be included in the record and will be made available to the public. Please be advised that the substance of the comments and the identity of the individuals or entities submitting the comments will be subject to public disclosure. All submissions will be available for public inspection at the address noted above Monday through Friday, 8:30 a.m.–5 p.m. The Department may also make the comments available on the Federal eRulemaking portal. FOR FURTHER INFORMATION CONTACT: Mr. Robert Eadie, Child Nutrition Division, Food and Nutrition Service at 703–305– 2590. SUPPLEMENTARY INFORMATION: I. Background Public Law 108–265, the Child Nutrition and WIC Reauthorization Act of 2004, enacted June 30, 2004, amended the Richard B. Russell National School Lunch Act (NSLA) (42 U.S.C. 1751 et seq.) and the Child Nutrition Act of 1966 (CNA) (42 U.S.C. 1771 et seq.) concerning applications for free and reduced price meals under the National School Lunch Program and the School Breakfast Program, and for free milk under the Special Milk Program for Children. Please note that while the application and certification procedures apply to the Special Milk Program, the preamble will only discuss free and reduced price meal benefits, as only a very small number of children participate in the Special Milk Program. However, this interim rule makes appropriate changes to the Special Milk Program regulations. All references to regulatory citations in this preamble are to Title 7, United States Code unless otherwise indicated. In response to the statutorily imposed effective dates established by sections 501 and 502 of Public Law 108–265, the Department of Agriculture (USDA or the Department) issued memoranda to implement some of the provisions regulatorily codified in this interim rule. E:\FR\FM\13NOR1.SGM 13NOR1

Agencies

[Federal Register Volume 72, Number 218 (Tuesday, November 13, 2007)]
[Rules and Regulations]
[Pages 63783-63785]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E7-22056]



========================================================================
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. 218 / Tuesday, November 13, 2007 / 
Rules and Regulations

[[Page 63783]]



OFFICE OF MANAGEMENT AND BUDGET

2 CFR Part 175


Trafficking in Persons: Grants and Cooperative Agreements

AGENCY: Office of Federal Financial Management, Office of Management 
and Budget.

ACTION: Interim final guidance.

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

SUMMARY: The Office of Federal Financial Management (OFFM) is 
establishing a government-wide award term for agencies to include in 
grants and cooperative agreements as part of their implementation of 
paragraph (g) of section 106 of the Trafficking Victims Protection Act 
of 2000, as amended (22 U.S.C. 7104). In each award under which funding 
is provided to a private entity, the statute requires the awarding 
agency to include a condition authorizing termination of the award if 
the recipient or a subrecipient engages in certain activities related 
to trafficking in persons.

DATES: The effective date for this interim final guidance is December 
13, 2007. To be considered in preparation of the final guidance, 
comments on the interim final guidance must be received by January 14, 
2008.

ADDRESSES: Due to potential delays in OMB's receipt and processing of 
mail sent through the U.S. Postal Service, we encourage respondents to 
submit comments electronically to ensure timely receipt. We cannot 
guarantee that comments mailed will be received before the comment 
closing date. Electronic mail comments may be submitted to: 
mpridgen@omb.eop.gov. Please include ``OMB Trafficking in Persons 
guidance'' in the subject line of your e-mail message. Also, please 
include the full body of your comments in the text of the electronic 
message, as well as in an attachment. Please include your name, title, 
organization, postal address, telephone number, and e-mail address in 
the text of the message. Comments may also be submitted via facsimile 
to (202) 395-3952 or by mail at 725 17th St., NW., Room 6025, 
Washington, DC 20503.

FOR FURTHER INFORMATION CONTACT: Marguerite Pridgen, Office of Federal 
Financial Management, Office of Management and Budget, telephone (202) 
395-7844 (direct) or (202) 395-3993 (main office) and e-mail: 
mpridgen@omb.eop.gov.

SUPPLEMENTARY INFORMATION:

I. Background

    In the Trafficking Victims Protection Reauthorization Act of 2003 
(Pub. L. 108-193, Sec.  3), Congress amended the Trafficking Victims 
Protection Act of 2000 (TVPA; Pub. L. No. 106-386, Div. A). One of the 
amendments was the addition of a new paragraph (g) to section 106 of 
the TVPA (Section 106 is codified at 22 U.S.C. 7104). Paragraph (g) 
provides that:

    ``Any grant, contract, or cooperative agreement provided or 
entered into by a Federal department or agency under which funds are 
to be provided to a private entity, in whole or in part, shall 
include a condition that authorizes the department or agency to 
terminate the grant, contract, or cooperative agreement, without 
penalty, if the grantee or any subgrantee, or the contractor or any 
subcontractor (i) engages in severe forms of trafficking in persons 
or has procured a commercial sex act during the period of time that 
the grant, contract, or cooperative agreement is in effect, or (ii) 
uses forced labor in the performance of the grant, contract, or 
cooperative agreement.''

As originally added in 2003, subsection (g) applied to ``funds made 
available to carry out any program, project, or activity abroad funded 
under major functional budget category 150 (relating to international 
affairs).'' Following the enactment of the 2003 Act, the President 
issued Executive Order (EO) No. 13333 (69 FR 13455; March 23, 2004), 
which implemented this new subsection 106(g) by amending EO No. 13257. 
One of the amendments to EO 13257 was the addition of a new Section 5 
(``Enhanced Prevention of Trafficking in Persons''), which provides in 
part that ``[e]ach affected executive branch department or agency shall 
implement, within that department or agency, the requirements set out 
in section 106(g) of the Act with respect to grants and cooperative 
agreements.''

    Section 106(g) was subsequently amended in the Trafficking Victims 
Protection Reauthorization Act of 2005 (Pub. L. No. 109-164). Section 
201(b) of this Act repealed the language that had previously stated 
that subsection (g) applied with respect to ``category 150'' funding. 
As a result, section 106(g) now applies to all Federal grants and 
cooperative agreements under which funds would be provided to private 
entities.
    In implementing Section 106(g), as amended, it is important to 
ensure effective government-wide implementation of this national 
policy. To that end, we are issuing, on an interim final basis, a 
Government-wide standard award term (and related guidance) on 
trafficking in persons for agencies to include in their grants and 
cooperative agreements. This award term was developed by an interagency 
workgroup under the Grants Policy Committee of the Chief Financial 
Officers Council.

II. Next Steps

    We will consider all comments received on the interim final version 
of the OMB guidance as we develop the final guidance. Federal agencies 
that award grants or cooperative agreements will implement the guidance 
through appropriate regulations and award terms.

List of Subjects in 2 CFR Part 175

    Administrative practice and procedure, Colleges and universities, 
Cooperative agreements, Grant programs, Grants administration, 
Hospitals, Indians--tribal government, Industry, Nonprofit 
organizations, State and local governments, Trafficking in persons.

Danny Werfel,
Acting Controller.

0
For the reasons set forth above, the Office of Management and Budget 
amends 2 CFR chapter I by adding a part 175 to read as follows:

PART 175--AWARD TERM FOR TRAFFICKING IN PERSONS

Sec.
175.5 Purpose of this part.
175.10 Statutory requirement.
175.15 Award term.

[[Page 63784]]

175.20 Referral.
175.25 Definitions.

    Authority: 22 U.S.C. 7104(g); 31 U.S.C. 503; 31 U.S.C. 1111; 41 
U.S.C. 405; Reorganization Plan No. 2 of 1970; E.O. 11541, 35 FR 
10737, 3 CFR, 1966-1970, p. 939.


Sec.  175.5  Purpose of this part.

    This part establishes a Governmentwide award term for grants and 
cooperative agreements to implement the requirement in paragraph (g) of 
section 106 of the Trafficking Victims Protection Act of 2000 (TVPA), 
as amended (22 U.S.C. 7104(g)).


Sec.  175.10  Statutory requirement.

    In each agency award (i.e., grant or cooperative agreement) under 
which funding is provided to a private entity, section 106(g) of the 
TVPA, as amended, requires the agency to include a condition that 
authorizes the agency to terminate the award, without penalty, if the 
recipient or a subrecipient--
    (a) Engages in severe forms of trafficking in persons during the 
period of time that the award is in effect;
    (b) Procures a commercial sex act during the period of time that 
the award is in effect; or
    (c) Uses forced labor in the performance of the award or subawards 
under the award.


Sec.  175.15  Award term.

    (a) To implement the trafficking in persons requirement in section 
106(g) of the TVPA, as amended, a Federal awarding agency must include 
the award term in paragraph (b) of this section in--
    (1) A grant or cooperative agreement to a private entity, as 
defined in Sec.  175.25(d); and
    (2) A grant or cooperative agreement to a State, local government, 
Indian tribe or foreign public entity, if funding could be provided 
under the award to a private entity as a subrecipient.
    (b) The award term that an agency must include, as described in 
paragraph (a) of this section, is:

    I. Trafficking in persons.
    a. Provisions applicable to a recipient that is a private 
entity.
    1. You as the recipient, your employees, subrecipients under 
this award, and subrecipients' employees may not--
    i. Engage in severe forms of trafficking in persons during the 
period of time that the award is in effect;
    ii. Procure a commercial sex act during the period of time that 
the award is in effect; or
    iii. Use forced labor in the performance of the award or 
subawards under the award.
    2. We as the Federal awarding agency may unilaterally terminate 
this award, without penalty, if you or a subrecipient that is a 
private entity --
    i. Is determined to have violated a prohibition in paragraph a.1 
of this award term; or
    ii. Has an employee who is determined by the agency official 
authorized to terminate the award to have violated a prohibition in 
paragraph a.1 of this award term through conduct that is either--
    A. Associated with performance under this award; or
    B. Imputed to you or the subrecipient using the standards and 
due process for imputing the conduct of an individual to an 
organization that are provided in 2 CFR part 180, ``OMB Guidelines 
to Agencies on Governmentwide Debarment and Suspension 
(Nonprocurement),'' as implemented by our agency at [agency must 
insert reference here to its regulatory implementation of the OMB 
guidelines in 2 CFR part 180 (e.g., ``2 CFR part XX'')].
    b. Provision applicable to a recipient other than a private 
entity. We as the Federal awarding agency may unilaterally terminate 
this award, without penalty, if a subrecipient that is a private 
entity--
    1. Is determined to have violated an applicable prohibition in 
paragraph a.1 of this award term; or
    2. Has an employee who is determined by the agency official 
authorized to terminate the award to have violated an applicable 
prohibition in paragraph a.1 of this award term through conduct that 
is either--
    i. Associated with performance under this award; or
    ii. Imputed to the subrecipient using the standards and due 
process for imputing the conduct of an individual to an organization 
that are provided in 2 CFR part 180, ``OMB Guidelines to Agencies on 
Governmentwide Debarment and Suspension (Nonprocurement),'' as 
implemented by our agency at [agency must insert reference here to 
its regulatory implementation of the OMB guidelines in 2 CFR part 
180 (e.g., ``2 CFR part XX'')].
    c. Provisions applicable to any recipient.
    1. You must inform us immediately of any information you receive 
from any source alleging a violation of a prohibition in paragraph 
a.1 of this award term.
    2. Our right to terminate unilaterally that is described in 
paragraph a.2 or b of this section:
    i. Implements section 106(g) of the Trafficking Victims 
Protection Act of 2000 (TVPA), as amended (22 U.S.C. 7104(g)), and
    ii. Is in addition to all other remedies for noncompliance that 
are available to us under this award.
    3. You must include the requirements of paragraph a.1 of this 
award term in any subaward you make to a private entity.
    d. Definitions. For purposes of this award term:
    1. ``Employee'' means either:
    i. An individual employed by you or a subrecipient who is 
engaged in the performance of the project or program under this 
award; or
    ii. Another person engaged in the performance of the project or 
program under this award and not compensated by you including, but 
not limited to, a volunteer or individual whose services are 
contributed by a third party as an in-kind contribution toward cost 
sharing or matching requirements.
    2. ``Forced labor'' means labor obtained by any of the following 
methods: the recruitment, harboring, transportation, provision, or 
obtaining of a person for labor or services, through the use of 
force, fraud, or coercion for the purpose of subjection to 
involuntary servitude, peonage, debt bondage, or slavery.
    3. ``Private entity'':
    i. Means any entity other than a State, local government, Indian 
tribe, or foreign public entity, as those terms are defined in 2 CFR 
175.25.
    ii. Includes:
    A. A nonprofit organization, including any nonprofit institution 
of higher education, hospital, or tribal organization other than one 
included in the definition of Indian tribe at 2 CFR 175.25(b).
    B. A for-profit organization.
    4. ``Severe forms of trafficking in persons,'' ``commercial sex 
act,'' and ``coercion'' have the meanings given at section 103 of 
the TVPA, as amended (22 U.S.C. 7102).

    (c) An agency may use different letters and numbers to designate 
the paragraphs of the award term in paragraph (b) of this section, if 
necessary, to conform the system of paragraph designations with the one 
used in other terms and conditions in the agency's awards.


Sec.  175.20  Referral.

    An agency official should inform the agency's suspending or 
debarring official if he or she terminates an award based on a 
violation of a prohibition contained in the award term under Sec.  
175.15.


Sec.  175.25  Definitions.

    Terms used in this part are defined as follows:
    (a) Foreign public entity means:
    (1) A foreign government or foreign governmental entity;
    (2) A public international organization, which is an organization 
entitled to enjoy privileges, exemptions, and immunities as an 
international organization under the International Organizations 
Immunities Act (22 U.S.C. 288-288f);
    (3) An entity owned (in whole or in part) or controlled by a 
foreign government; and
    (4) Any other entity consisting wholly or partially of one or more 
foreign governments or foreign governmental entities.
    (b) Indian tribe means any Indian tribe, band, nation, or other 
organized group or community, including any Alaskan Native village or 
regional or village corporation (as defined in, or established under, 
the Alaskan Native

[[Page 63785]]

Claims Settlement Act (43 U.S.C. 1601, et seq.)) that is recognized by 
the United States as eligible for the special programs and services 
provided by the United States to Indians because of their status as 
Indians.
    (c) Local government means a:
    (1) County;
    (2) Borough;
    (3) Municipality;
    (4) City;
    (5) Town;
    (6) Township;
    (7) Parish;
    (8) Local public authority, including any public housing agency 
under the United States Housing Act of 1937;
    (9) Special district;
    (10) School district;
    (11) Intrastate district;
    (12) Council of governments, whether or not incorporated as a 
nonprofit corporation under State law; and
    (13) Any other instrumentality of a local government.
    (d) Private entity.
    (1) This term means any entity other than a State, local 
government, Indian tribe, or foreign public entity.
    (2) This term includes:
    (i) A nonprofit organization, including any nonprofit institution 
of higher education, hospital, or tribal organization other than one 
included in the definition of Indian tribe in paragraph (b) of this 
section.
    (ii) A for-profit organization.
    (e) State, consistent with the definition in section 103 of the 
TVPA, as amended (22 U.S.C. 7102), means:
    (1) Any State of the United States;
    (2) The District of Columbia;
    (3) Any agency or instrumentality of a State other than a local 
government or State-controlled institution of higher education;
    (4) The Commonwealths of Puerto Rico and the Northern Mariana 
Islands; and
    (5) The United States Virgin Islands, Guam, American Samoa, and a 
territory or possession of the United States.

[FR Doc. E7-22056 Filed 11-9-07; 8:45 am]
BILLING CODE 3110-01-P