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[Federal Register Volume 62, Number 145 (Tuesday, July 29, 1997)]
[Proposed Rules]
[Pages 40492-40493]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-19855]

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DEPARTMENT OF VETERANS AFFAIRS

38 CFR Part 17

RIN 2900-AI84

Grants to States for Construction or Acquisition of State Home 
Facilities

AGENCY: Department of Veterans Affairs.

ACTION: Proposed rule.

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SUMMARY: This document proposes to amend the ``Medical'' regulations in 
38 CFR part 17 regarding applications for grants to States for the 
construction or acquisition of State home facilities. VA awards grants 
based on a priority ranking system. Usually, the higher priority 
applications deplete the available funding to the extent that the 
lowest ranking application to be offered funding is offered only a 
partial grant. It is proposed that if the lowest ranking grant 
application receives only a partial grant in a fiscal year and if such 
grant award is partial solely because VA has insufficient funds for a 
full grant, the application would be placed at the top of the list 
within its priority group for the next fiscal year. Often applicants 
are hesitant to accept a partial grant because of the uncertainty of 
receiving an additional grant the next fiscal year. It appears that the 
adoption of the proposal would encourage States to accept a partial 
grant by creating the likelihood that the State would receive an 
additional grant in the subsequent

[[Page 40493]]

fiscal year. Accordingly, this would help ensure that VA would be able 
to award grants to higher priority applicants that might otherwise 
reject partial funding.
    Also, it is proposed that the applicant receiving partial funding 
and receiving priority as proposed would not be required to submit a 
second application for additional funds in the subsequent fiscal year, 
but could be required to update information already submitted. It 
appears that the first application would normally be adequate because 
the grant award in the second fiscal year would be for the same project 
which received the partial grant award.
    Further, under the proposal, the total amount awarded for the 
application could not exceed 65 percent of the total cost of the 
project as determined at the time of the second grant award for that 
grant application. This is consistent with the statutory requirement 
that limits grant awards to no more than 65 percent of the estimated 
cost of construction or acquisition.

DATES: Comments must be received on or before September 29, 1997.

ADDRESSES: Mail or hand deliver written comments to: Director, Office 
of Regulations Management (02D), Department of Veterans Affairs, 810 
Vermont Avenue, NW, Room 1154, Washington, DC 20420. Comments should 
indicate that they are submitted in response to ``RIN 2900-AI84.'' All 
written comments received will be available for public inspection at 
the above address in the Office of Regulations Management, Room 1158, 
between the hours 8:00 a.m. and 4:30 p.m., Monday through Friday 
(except holidays).

FOR FURTHER INFORMATION CONTACT: Ms. Kathleen Greve, Geriatrics and 
Extended Care Strategic Healthcare Group, (202) 273-8534.

SUPPLEMENTARY INFORMATION: The Secretary hereby certifies that the 
adoption of this proposed rule would 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. 
The rule would affect grants to States and would not directly 
affect small entities. Therefore, pursuant to 5 U.S.C. 605(b), this 
rule would be exempt from the initial and final regulatory 
flexibility analyses requirements of sections 603 and 604.

    The Catalog of Federal Domestic Assistance program number for this 
document is 64.005.

List of Subjects in 38 CFR Part 17

    Administrative practice and procedure, Alcohol abuse, Alcoholism, 
Claims, Drug abuse, Foreign relations, Government contracts, Grant 
programs-health, Grant programs-veterans, Health care, Health 
facilities, Health professions, Health records, Homeless, Medical and 
dental schools, Medical devices, Medical research, Mental health 
programs, Nursing homes, Philippines, Reporting and recordkeeping 
requirements, Scholarships and fellowships, Travel and transportation 
expenses, Veterans.

    Approved: July 17, 1997.
Hershel W. Gober,
Acting Secretary of Veterans Affairs.

    For the reasons set forth in the preamble, 38 CFR part 17 is 
proposed to be amended as set forth below:

PART 17--MEDICAL

    1. The authority citation for part 17 continues to read as follow:

    Authority: 38 U.S.C. 501, 1721, unless otherwise noted.

    2. In Sec. 17.212, paragraph (d) is added immediately before the 
section authority citation following paragraph (c) to read as follows:

Sec. 17.212  Scope of grants program.

* * * * *
    (d)(1) Notwithstanding paragraph (c) of this section and the 
provisions for ranking projects within a priority group in 
Sec. 17.213(c)(3)(i), the Secretary shall give an application first 
priority within the priority group to which it is assigned on the list 
of projects established under Sec. 17.213(d) for the next fiscal year 
if:
    (i) the State has accepted a grant for that application as of 
August 15 of the current fiscal year that is less than the amount that 
the Secretary would have awarded if VA had had sufficient grant funds 
to award the grant in such amount in that fiscal year; and
    (ii) the application is the lowest ranking application on the 
priority list for the current fiscal year for which grant funds are 
available as of August 15 of that year.
    (2) The Secretary shall not require a State to submit a second 
grant application for a project which receives priority under paragraph 
(1) of this section but may require the State to update information 
already submitted in the application for the project. The Secretary 
shall determine the amount of a second grant at the time of the award 
of that grant. In no case shall the total amount awarded for the 
application exceed 65 percent of the total cost of the project as 
determined at the time of the second grant award for that grant 
application.
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[FR Doc. 97-19855 Filed 7-28-97; 8:45 am]
BILLING CODE 8320-01-U
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