[Federal Register Volume 62, Number 219 (Thursday, November 13, 1997)]
[Rules and Regulations]
[Page 60783]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-29788]


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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: Final rule.

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SUMMARY: This document amends the ``Medical'' regulations 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. This final rule provides 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. This final rule will encourage States to accept a partial 
grant by creating the likelihood that the State would receive an 
additional grant in the subsequent fiscal year. Accordingly, this will 
help ensure that VA would be able to award grants to higher priority 
applicants that might otherwise reject partial funding.
    Also, this final rule provides that the applicant receiving partial 
funding and receiving priority as proposed will 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. 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, the final rule provides that the total amount awarded for 
the application may 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 construction or acquisition.

DATES: Effective Date: December 15, 1997.

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

SUPPLEMENTARY INFORMATION: In a document published in the Federal 
Register on July 29, 1997 (62 FR 40492), VA proposed to amend the 
``Medical'' regulations in 38 CFR part 17 as set forth in the SUMMARY 
portion of this document. The document provided a 60-day comment 
period, which ended on September 29, 1997. Three commentors submitted 
comments, all of whom expressed full approval for the provisions of the 
proposed rule.
    Based on the rationale set forth in the proposed rule and this 
document, the provisions of the proposed rule are adopted as a final 
rule without change.
    The Secretary hereby certifies that the adoption of this final rule 
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. The rule will affect grants to States and will not 
directly affect small entities. Therefore, pursuant to 5 U.S.C. 605(b), 
this rule is exempt from the initial and final regulatory flexibility 
analyses requirements of secs. 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: November 3, 1997.
Hershel W. Gober,
Acting Secretary of Veterans Affairs.

    For the reasons set forth above, 38 CFR part 17 is 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 and the authority 
citation for the section is revised 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 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 
(d)(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.

(Authority: 38 U.S.C. 8135(b))

[FR Doc. 97-29788 Filed 11-12-97; 8:45 am]
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