27158 Federal Register / Vol. 66, No. 95 / Wednesday, May 16, 2001 / Notices

DEPARTMENT OF JUSTICE

Office for Victims of Crime

[OJP(OVC)–1319]

Victims of Crime Act Victim

Compensation Grant Program

AGENCY: Office for Victims of Crime,

Office of Justice Programs, Justice.

ACTION: Final program guidelines.

SUMMARY: The Office for Victims of

Crime (OVC), United States Department

of Justice (DOJ) is publishing Final

Guidelines to implement the crime

victim compensation grant program as

authorized by the Victims of Crime Act

of 1984, as amended, 42 U.S.C. 10601,

et seq., hereafter referred to as VOCA.

EFFECTIVE DATE: These Final Guidelines

are effective upon publication in the

Federal Register or until reissuance by

OVC.

FOR FURTHER INFORMATION CONTACT:

Carol R. Watkins, Director, State

Compensation and Assistance Division,

Office for Victims of Crime 810 Seventh

Street, NW., Washington, DC 20531;

phone: (202) 514–4696. (This is not a

toll-free number). Email:watkinsc@ojp.usdoj.gov

SUPPLEMENTARY INFORMATION: The

Victims of Crime Act (VOCA) authorizes

federal financial assistance to states for

the purposes of compensating and

assisting crime victims, funding training

and technical assistance, and serving

victims of federal crimes. These Final

Guidelines provide information

specifically for the administration and

implementation of the VOCA crime

victim compensation grant program as

authorized in section 1403 of VOCA,

Public Law 98–473, as amended,

codified at 42 U.S.C. 10602.

Summary of the Revisions to the Final

Guidelines for the Victims of Crime Act

Crime Victim Compensation Grant

Program

These Final Guidelines for the VOCA

Crime Victim Compensation Grant

Program are in accordance with VOCA

and are all inclusive. Thus, these Final

Guidelines supersede any VOCA Crime

Victim Compensation Grant Program

Guidelines previously issued by OVC.

The changes contained in these Final

Guidelines result from developments in

the criminal justice and victim services

fields since the 1997 Guidelines were

issued.

OVC published in the Federal

Register Proposed VOCA Crime Victim

Compensation Program Guidelines that

were distributed to interested

individuals and organizations for the

purpose of soliciting comments. Copies

were mailed to all state VOCA victim

compensation and assistance program

administrators, to executive directors of

national victim organizations, and to

VOCA victim assistance subgrantee

programs. OVC received 16 responses

from state VOCA victim compensation

administrators and the National

Association of Crime Victim

Compensation Boards; representatives

of other victim services organizations,

law enforcement, and U.S. Attorneys

Offices; one local organization

representing senior citizens; and one

national association representing

financial planners.

I. Comments From the Field

A. Nonviolent Crimes

VOCA administrators questioned the

statutory authority to include

nonviolent crimes and the related

victim expenses under VOCA crime

victim compensation funding. As a

result, the Final Guidelines have been

clarified to explain that VOCA does not

prohibit coverage of nonviolent crimes

and that states choosing to cover these

crimes may include amounts paid to

these victims in their certified payout

figures, which are used to determine the

amount of federal funding the state is

entitled to receive. Compensable

expenses could include crisis

counseling, mental health treatment,

financial counseling, and other services

funded by a state’s program. The Final

Guidelines have also been clarified to

explain that amounts paid by states to

victims for property, damaged or lost in

violent or nonviolent crimes, except in

certain instances, cannot be included in

a state’s certified payout figures. The

Final Guidelines emphasize that priority

under VOCA continues to be coverage

for victims of violent crime.

B. Encouragement From OVC To

Expand Coverage

Two respondents questioned OVC’s

encouragement to expand coverage of

certain crimes, expenses, and victims

within the Guidelines, stating that the

Guidelines establish policy, and that

encouragements are better addressed

through other means. OVC has removed

the encouragements from the body of

the Final Guidelines and has explained

its identification of emerging trends and

unmet needs of crime victims in a

preamble. This information is provided

for states to consider as they examine

their programs’ responsiveness to crime

victims and strive to improve the range

of assistance provided. The Final

Guidelines state that these are not

mandates and emphasize that it is

within the discretion of the state to

determine coverage under its

compensation statute, rule, or other

established policy. The Final Guidelines

also clarify that state funds paid to

crime victims for these purposes may be

included in a state’s annual certification

of payments to victims.

C. Victims Experiencing Financial Loss

as a Result of Crime

Five respondents expressed support

for inclusion of economic crime as a

compensable crime category that states

may include in their annual certification

of payments. Others acknowledged that

while victims of economic crime have

needs, priority must remain with

meeting the needs of victims of violent

crime. As a result, economic crime is

addressed in the preamble to the Final

Guidelines and the body of the Final

Guidelines emphasize that priority

under VOCA is given to victims of

violent crime.

Respondents sought clarification on

use of the term financial planning in the

proposed Guidelines. Since the term

conflicts with a term used by

professional financial planners who

assist with investments, insurance, and

estate planning, the term used in the

Final Guidelines has been changed to

financial counseling.

The purpose of financial counseling

services is to assist victims who have to

restructure their financial affairs

because of a crime. These claimants may

be survivors of homicide victims or

victims of domestic violence, fraud, or

other crimes. Allowable activities

provided by financial counselors

include but are not limited to: Analysis

of a victim’s financial situation such as

income producing capacity and crimerelated financial obligations; assistance

with restructuring budget and debt;

assistance in accessing insurance,

public assistance, and other benefits;

assistance in completing financial

impact statements for criminal or civil

courts; and assistance in settling estates

and handling guardianship concerns.

D. Victim Cooperation With Law

Enforcement

One respondent commented that

requiring a victim who is a vulnerable

adult to report a crime to law

enforcement is unrealistic. As a result,

these Final Guidelines allow a state to

accept, as an indication of a victim’s

cooperation with law enforcement, a

crime report to law enforcement or to a

child or adult protective services agency

from a mandated reporter or other

person knowledgeable about a crime

against a child or a vulnerable adult.

Federal Register / Vol. 66, No. 95 / Wednesday, May 16, 2001 / Notices 27159

A crime victim’s willingness to

cooperate with law enforcement may be

affected by compelling health or safety

concerns including apprehension about

personal safety, fear of retaliation, and

intimidation by the offender or others.

Crime victims may be reluctant to

cooperate fully with law enforcement

after receiving threats of violence or

death against themselves and their

families from the offender.

Many barriers—age, psychological,

cultural, and linguistic—may affect the

victim’s ability to cooperate with law

enforcement. There may be unique

barriers deterring a young child or

senior citizen from complying fully with

law enforcement. Embarrassment,

shame, and the psychological trauma

may delay the reporting of sexual

assault. Cultural and language

differences may diminish a victim’s

access to and understanding of the

criminal justice system. In setting the

standard for victim cooperation with

law enforcement, OVC encourages state

programs to determine how to address

these considerations.

E. Crime Scene Cleanup

VOCA administrators requested

clarification on what could be covered

under crime scene cleanup. Since state

statute, rules, and policy dictate

allowable expenses for this service, the

Final Guidelines have been clarified to

say that states may not include property

replacement or repair cost, except for

replacement of locks and windows, and

replacement of bedding and clothing

held as evidence, in their annual

certification of payments.

F. Nonsupplantation

One respondent asked OVC to clarify

if the use of federal funds that a state

receives as a result of the expenditure of

state revenues constitutes

supplantation. As a result, clarifying

language has been added stating that use

of federal funds received as a result of

its certified state payouts is not

supplantation.

II. Legislative Changes

A. Child Abuse Prevention and

Enforcement Act

This Act amended VOCA to allow for

an increase in funds set aside for child

abuse victims from $10 million up to

$20 million. This occurs in any fiscal

year in which Crime Victim Fund

deposits are greater than the amount

deposited in Fiscal Year 1998. An

amount equal to 50 percent of the

increase plus the base amount of $10

million is available for this purpose.

This applies regardless of whether there

is a cap on the amount of money made

available from the Fund for VOCA

purposes.

B. Consolidated Appropriations Acts of

Fiscal Year 1997 and 2000

The VOCA distribution formula was

amended to provide funds for victim

assistance provided through the Federal

Criminal Justice System.

C. Victims of Trafficking and Violence

Protection Act of 2000

Provides: 1. Aid for victims of

terrorism and expanded OVC’s authority

to respond to incidents of terrorism

outside the United States and of

terrorism and mass violence occurring

within the United States; 2.

authorization for the OVC Director to

increase money set aside for the

Antiterrorism and Emergency Fund to

$100 million and to deposit deobligated

dollars from other funded program areas

into this Fund; 3. an expanded list of

eligible applicants for Antiterrorism and

Emergency Funds for incidents of

terrorism outside the U.S. to include,

not only states and United States

Attorneys Offices, but also victim

service organizations, and public

agencies (including Federal, State, or

local governments), and nongovernmental organizations that provide

assistance to victims of crime for

provision of emergency relief including

crisis response efforts, assistance,

training and technical assistance and

on-going assistance including during

any investigation and prosecution [42

U.S.C. 10603b(a)]; 4. an expanded range

of support provided to victims of

terrorism and mass violence beyond

emergency relief to include crisis

response efforts, assistance, training and

technical assistance and on-going

assistance; 5. for the establishment of a

program to compensate victims of acts

of international terrorism that occur

outside the United States for associated

expenses.

OVC will publish separate guidelines

entitled Antiterrorism and Emergency

Fund Guidelines for Terrorism and Mass

Violence Crimes and for the

International Crime Victim

Compensation Program.

In addition, the Act establishes policy

for international trafficking in persons

and provides access to services and

accommodation in immigration status

for victims of severe forms of trafficking,

regardless of their immigration status. It

also establishes a new, non-immigrant

visa classification for certain victims of

severe forms of trafficking.

III. Final Program Guidelines for VOCA

Crime Victim Compensation Grant

Program

The Office for Victims of Crime

(OVC), U.S. Department of Justice (DOJ)

is publishing these Final Guidelines for

the VOCA Crime Victim Compensation

Grant Program (hereinafter referred to as

Final Guidelines) to implement the

victim compensation grant program as

authorized by the Victims of Crime Act

(VOCA) of 1984, as amended, 42 U.S.C.

10601, et seq. These Final Guidelines

are in accordance with VOCA and

supersede any Guidelines previously

issued by OVC.

A. Preamble

OVC has administered the VOCA

crime victim compensation program for

fourteen years, funded hundreds of

discretionary grants, hosted many focus

groups with experts from various fields

that serve crime victims, and responded

to issues and concerns of hundreds of

crime victims. Through these contacts,

OVC has identified a number of

emerging trends and unmet needs.

OVC’s partnership with states to meet

the needs of all crime victims has, in

some cases, resulted in statutory and

policy changes. While no specific

amendments have been made to VOCA

to address many of these emerging

issues and needs, OVC shares this

information with states for

consideration as they examine their

programs’ responsiveness to crime

victims and strive to improve the range

of assistance provided.

OVC has identified emerging issues

and unmet needs for the following four

groups of victims and crimes and

acknowledges that many states already

compensate crime victims in some or

most of these categories.

1. Crimes Involving Threat But Not

Physical Injury. Many crimes involve

threat but the victims suffer no physical

injury. For example, a stalking victim

may be intimidated and harassed over

the Internet but not physically attacked

by the stalker and a robbery victim may

be threatened with a weapon but not

physically injured. Another example

would be incidents such as school and

workplace shootings in which many

people are in danger but not all are

physically injured or killed. In property

related hate crimes, windows may be

broken and graffiti painted on a home,

with the intent to intimidate and cause

fear in a person or family. In all of these

instances, persons may be seriously

traumatized by a crime but not be

physically injured. States are

encouraged to consider the safety and

mental health needs of these victims.

27160 Federal Register / Vol. 66, No. 95 / Wednesday, May 16, 2001 / Notices

2. Witnesses to Violence. The primary

group considered under this category is

children who witness domestic

violence. In addition, in mass violence

incidents, others impacted by the

violence may be considered victims.

States are encouraged to consider the

mental health and other needs of these

victims.

3. Economic Crime. Increasing

attention is being directed by law

enforcement officials to economic

crime. While anyone can be a victim of

financial fraud, often criminals target

elders specifically. In addition, identity

theft can damage or destroy the

financial integrity of many unsuspecting

adults. Economic crime can have a

devastating impact on victims

emotionally, physically, and financially.

States are encouraged to consider the

needs of these victims.

4. State Residents Who Are Victims of

Crime Outside U.S. Jurisdiction. As

required by VOCA, all states provide

benefits under their crime victim

compensation programs for victims of

terrorism occurring outside the United

States. Because state residents function

in a global society, OVC encourages

coverage of residents who are victims of

crimes other than terrorism that occur

when they are outside the territorial

jurisdiction of the U.S. This would

allow coverage to residents who are

studying, conducting business, touring,

and living abroad. It would also cover

victims of crimes occurring on

international waters.

Again, OVC’s purpose in identifying

the above emerging trends and unmet

needs of crime victims is to challenge

states to assess the comprehensiveness

of their crime victim compensation

programs and to provide needed

background information for those states

desiring to expand the scope of crimes

and benefits provided to people

victimized by crime. The identification

of these issues does not constitute a

mandate or requirement of states

beyond the statutory requirements

outlined in VOCA.

These VOCA Final Guidelines are

outlined as follows:

I. Definitions

II. Background

III. Funding Allocations

IV. State Eligibility Criteria

V. State Certification

VI. Application Process and Performance

Reporting

VII. Administrative Costs

VIII. Financial Requirements

IX. Monitoring

X. Suspension and Termination of Funding

I. Definitions

For purposes of these Final

Guidelines, the following terms are

defined:

A. Driving While Intoxicated. This

includes drunk driving and driving

under the influence of alcohol and/or

other drugs. Specific definitions may be

provided by state statutes, written rules,

or other established policies.

B. Federal Crime. A federal crime is

any crime that is a violation of the

United States Criminal Code or

violation of the Code of Military Justice.

In general, federal crimes are

investigated by federal law enforcement

agencies, including the Federal Bureau

of Investigation (FBI), Drug Enforcement

Administration (DEA), Bureau of

Alcohol, Tobacco and Firearms (BATF),

U.S. Postal Service (USPS), Department

of Interior (DOI), U.S. Secret Service

(USSS), U.S. Customs Service (USCS),

and Immigration and Naturalization

Service (INS). Federal crimes are

prosecuted in Federal District Courts by

U.S. Attorneys and the U.S. Department

of Justice Criminal Division. Examples

of Federal crimes include, but are not

limited to:

1. Crimes against Federal officials

2. Crimes that take place on Federal

property, including national parks

and military bases, certain maritime

and territorial jurisdictions, and

buildings owned or leased by the

Federal Government

3. Bank robberies where the bank is

insured or otherwise secured by the

Federal Government

4. Crimes affecting interstate activities,

such as kidnaping, interstate domestic

violence, and fraud via U.S. mail,

telephone, or wire

5. Crimes occurring in Indian Country

or on reservations, where the Federal

Government has criminal jurisdiction

6. Trafficking of persons

C. Federal Program, or a federally

financed State or local program is a

program that provides third party

reimbursement for victim expenses and

includes such funding sources as

Medicaid, Medicare, and CHAMPUS or

provides direct Federal appropriations

for organizations that provide direct

services such as Indian Health Service

and the Veterans’ Administration.

D. Mass Violence occurring within or

outside the United States. The term

mass violence is not defined in VOCA

or in any statute amending VOCA nor is

it defined in the U.S. Criminal Code.

Thus, OVC has developed a working

definition of this term. The term mass

violence means an intentional violent

criminal act, for which a formal

investigation has been opened by the

Federal Bureau of Investigation or other

law enforcement agency, that results in

physical, emotional or psychological

injury to a sufficiently large number of

people as to significantly increase the

burden of victim assistance and

compensation for the responding

jurisdiction. If there is a discrepancy

between the definition provided in

these Final Guidelines and the

Antiterrorism and Emergency Fund

Guidelines for Terrorism and Mass

Violence Crimes, the definition in the

Antiterrorism and Emergency Fund

Guidelines takes precedence.

E. Mental Health Counseling and

Care. Mental health counseling and care

mean the assessment, diagnosis, and

treatment of an individual’s mental and

emotional functioning. Mental health

counseling and care must be provided

by a person who meets state standards

to provide these services.

F. Property Damage and Loss.

Property damage is damage to material

goods. Property loss is destruction of

material goods or loss of money, stocks,

bonds, etc. Property damage does not

include damage to prosthetic devices,

eyeglasses, other corrective lenses,

dental devices, or other medically

related devices.

G. Restitution. Restitution is payment

made by the offender to the victim who

was injured in the crime, to the legal

guardian of a vulnerable adult or child

victim, or to beneficiaries of the victim

of homicide. Restitution does not refer

to the general collection of fines, fees,

and other penalties from offenders that

provide basic revenue for a

compensation program and are not

attributable to reimbursement of

payouts on a specific claim.

H. State. The term state includes the

50 states, the District of Columbia, the

U.S. Virgin Islands, Guam, Puerto Rico

and any other possession or territory of

the United States.

I. Terrorism occurring within the

United States. The term terrorism means

an activity that... (1) involves a violent

act or an act dangerous to human life

that is a violation of the criminal laws

of the United States or of any State, or

that would be a criminal violation if

committed within the jurisdiction of the

United States or any State; and (2)

appears to be intended ... (a) to

intimidate or coerce a civilian

population, (b) to influence the policy of

a government by intimidation or

coercion, or (c) to affect the conduct of

a government by assassination or

kidnaping (18 U.S.C. 3077).

J. Terrorism Occurring Outside the

United States. The Antiterrorism and

Emergency Reserve Fund Guidelines for

Terrorism and Mass Violence Crimes

Federal Register / Vol. 66, No. 95 / Wednesday, May 16, 2001 / Notices 27161

1 In any fiscal year in which Fund deposits are

greater than the amount deposited in fiscal year

1998, an amount equal to 50 percent of the increase

in the amount from fiscal year 1998 shall be

available for Child Abuse Prevention and Treatment

Grants in addition to the base amount of $10

million. The total amount allocated for Child Abuse

Prevention and Treatment grants for any fiscal year

cannot exceed $20 million.

refers to the term terrorism, when

occurring outside the United States, as

international terrorism to mean an

activity that... (1) involves a violent act

or an act dangerous to human life that

is a violation of the criminal laws of the

United States of any State, or that would

be a criminal violation if committed

within the jurisdiction of the United

States or of any State; (2) appears to be

intended ... (a) to intimidate or coerce a

civilian population; (b) to influence the

policy of a government by intimidation

or coercion; or (c) to affect the conduct

of a government by assassination or

kidnaping; and (3) occur primarily

outside the territorial jurisdiction of the

United States, or transcend national

boundaries in terms of the means by

which they are accomplished, the

persons they appear intended to

intimidate or coerce, or the locale in

which their perpetrators operate or seek

asylum (18 U.S.C. 2331).

II. Background

In 1984, VOCA established the Crime

Victims Fund (hereinafter referred to as

the Fund) in the U.S. Treasury to

receive deposits from fines, penalties,

and bond forfeitures levied on criminals

convicted of federal crimes. The Fund is

administered by OVC to support the

activities authorized by VOCA.

OVC makes annual VOCA crime

victim compensation grants from the

Fund to eligible states and territories.

The primary purpose of these grants is

to supplement state efforts to provide

financial assistance and reimbursement

to crime victims throughout the Nation

for costs associated with crime, and to

encourage victim cooperation and

participation in the criminal justice

system.

With the exception of most property

damage and loss as explained in these

Final Guidelines, state crime victim

compensation programs may use VOCA

compensation grant funds to pay for

eligible expenses allowed by state

compensation statute, rule, or other

established policy.

III. Funding Allocations

A. Distribution. By statute, deposits

are to be allocated as follows:

1. Child Abuse Prevention and

Treatment Grants. Up to $20 million 1 of

the first amounts deposited in the Fund

are allocated to Child Abuse Prevention

and Treatment Grants. Of these funds,

85 percent are forwarded to the

Department of Health and Human

Services. The remaining 15 percent is

retained by OVC to assist Native

American Indian tribes in developing,

establishing and operating child abuse

programs.

2. Federal Criminal Justice System.

Specific amounts are earmarked by

Congress annually for improving

services for the benefit of crime victims

in the Federal criminal justice system.

3. Remaining Fund Deposits. The

remaining fund deposits are distributed

as follows:

a. Victim Compensation Grants. Fortyeight and one half percent (48.5%) is

available to eligible state programs for

crime victim compensation.

b. Victim Assistance Grants. Fortyeight and one half percent (48.5%) is

available to states for victim assistance

grants. Unused funds from the victim

compensation portion of the deposits

are added to this amount.

c. Discretionary Grants. Three percent

(3%) is available to OVC for

demonstration projects, training and

technical assistance grants, and

financial support for services to victims

of federal crime.

d. Antiterrorism and Emergency

Fund. If monies in the Fund are

sufficient to fully provide VOCA grants

to the states, and deposits total 110

percent of the previous fiscal year, or if

any funds are deobligated, the OVC

director may retain up to $100 million

in an emergency fund. These funds are

to be used (1) for Victims of terrorism

within and outside the United States

and for victims of other mass violence

crimes; (2) for supplementing State

Compensation and Assistance Programs’

basic state compensation and assistance

awards at the discretion of the OVC

Director; and (3) to pay benefits under

the newly authorized international

compensation program.

B. Grant Period. Victim compensation

grant funds are available for expenditure

throughout the fiscal year (FY) of the

award plus the next three fiscal years.

The federal fiscal year (FFY) begins on

October 1 and ends on September 30.

State crime victim compensation

programs may pay compensation claims

retroactively to October 1, even though

the VOCA grant may not be awarded

until later in the fiscal year.

C. VOCA Victim Compensation Grant

Formula. The Director of OVC is

required to make an annual grant to

eligible crime victim compensation

programs that is equal to 40 percent of

the amount awarded by the state

program to victims of crime from state

revenues during the fiscal year

preceding the year of deposits in the

Fund (two years prior to the grant year).

If the amount in the Fund is insufficient

to award each state 40 percent of its

prior year’s compensation payout from

state revenues, all states will be

awarded the same reduced percentage of

their prior year payout from the

available funds.

To determine the amount available,

each state must submit with its annual

application a certification of the amount

expended by the crime victim

compensation program in the previous

federal fiscal year. See Section V. for

additional information.

IV. State Eligibility Criteria

A. Grantee. The grantee must be an

operational state-administered crime

victim compensation program. A new

compensation program is entitled to a

VOCA grant after it has awarded

benefits that can be matched under

VOCA. VOCA may not be used as startup funds for a new state compensation

program. In the event that a state

chooses to administer its compensation

program in a decentralized fashion, the

state remains accountable to VOCA for

expenditure of these funds.

B. Program Requirements. For a state

to meet or maintain eligibility for a

VOCA crime victim compensation grant,

it must satisfy the following

requirements:

1. Compensable Crimes.

(a) VOCA Mandated Crimes. At a

minimum, VOCA specifically requires

the grantee to offer compensation to

crime victims and survivors of victims

of criminal violence for certain

identified expenses (see below)

resulting from physical injury from a

compensable crime as defined by the

state. VOCA requires that states include

as compensable crimes those crimes

whose victims suffer death or physical

injury as a result of terrorism, driving

while intoxicated, and domestic

violence.

In addition, VOCA requires that states

include as compensable crimes those

crimes whose victims suffer death or

personal injury as a result of the

intentional or attempted defacement,

damage, or destruction of any religious

real property because of (1) its religious

character or the obstruction, by force or

threat of force, of any person’s

enjoyment of the free exercise of

religious beliefs when the crime is

covered by interstate or foreign

commerce; (2) the race, color, or ethnic

characteristics of any individual

associated with the religious property.

(b) Coverage of Other Crimes. VOCA

places priority on violent crime, but it

does not prohibit coverage of nonviolent

27162 Federal Register / Vol. 66, No. 95 / Wednesday, May 16, 2001 / Notices

crime. States may choose to broaden the

range of compensable crimes to include

those involving threats of injury or

economic crime where victims are

traumatized but not physically injured.

In doing so, they may include payments

to victims for compensable expenses for

these crimes on the state’s certification

of funds expended for the compensation

program.

2. Compensable Expenses.

(a) VOCA Mandated Expenses. At a

minimum, VOCA requires states to

award compensation for the following

expenses when they are attributable to

a physical injury resulting from a

compensable crime:

i. Medical Expenses. This may

include eyeglasses and other corrective

lenses, dental services, prosthetic or

other devices, and other services

rendered in accordance with a method

of healing recognized by state law.

ii. Mental health counseling and care.

iii. Lost wages.

iv. Funeral expenses attributable to a

death resulting from a compensable

crime.

(b) Other Allowable Expenses. State

grantees may offer compensation for

other types of expenses as authorized by

state statute, rule, or other established

policy.

(i) Property Damage and Loss.

Amounts awarded for property damage

and loss cannot be included in the

amount certified as a basis for the award

of VOCA compensation grants except as

listed under Section IV.B.2(b)(ii)4&5 of

these Final Guidelines.

(ii) In addition to VOCA mandated

expenses, other allowable expenses may

be included in the certified payout

amount such as:

1. Travel and transport for survivors

of homicide victims to secure bodies of

deceased victims from another country

or state.

2. Temporary lodging.

3. Necessary building modification

and equipment to accommodate

physical disabilities resulting from a

compensable crime.

4. Replacement costs for clothing and

bedding held as evidence.

5. Replacement or repair of windows

and locks.

6. Crime scene cleanup, as defined by

state statute, rule or other established

policy. Crime scene cleanup does not

include replacement of lost or damaged

property, except for locks and windows,

and for clothing and bedding held as

evidence.

7. Attorneys’ fees related to a victim’s

claim for compensation, for establishing

guardianship, settling estates, and other

activities related to the crime.

8. Payments related to forensic sexual

assault examinations (1) If such

payments are made from funds

administered by the compensation

programs and are allowable under state

statute, rule, or other established policy;

and (2) to the extent that other funding

sources such as state appropriations

specifically earmarked for these exams

are unavailable or insufficient.

9. Dependent care to allow victims to

participate in criminal justice activities

or secure medical treatment and

rehabilitation services.

10. Financial counseling services for

victims of economic crime, domestic

violence, survivors of homicide victims,

and other victims faced with financial

difficulty as a result of a crime.

Allowable activities provided to crime

victims by financial counselors include

but are not limited to: analysis of a

victim’s financial situation such as

income producing capacity and crime

related financial obligations; assistance

with restructuring budget and debt;

assistance in accessing insurance,

public assistance and other benefits;

assistance in completing financial

impact statements for criminal courts;

and assistance in settling estates and

handling guardianship concerns.

Financial counseling must be provided

by a person who meets state standards

for provision of this service.

11. Pain and suffering.

12. Annuities for loss of support for

children of victims of homicide.

3. Victim Cooperation With Law

Enforcement. Crime victim

compensation programs must promote

victim cooperation with the reasonable

requests of law enforcement authorities.

State crime victim compensation

programs maintain the authority and

discretion to establish their own

standards for victim cooperation with

the reasonable requests of law

enforcement.

VOCA’s cooperation with the

reasonable requests of law enforcement

requirement may be fulfilled by using

the following criteria or by any other

criteria the state believes is necessary

and acceptable to encourage and

document victim cooperation with law

enforcement. For example, a state may:

a. Require a victim to report the crime

to a law enforcement agency;

b. Require a victim to report the crime

to an appropriate government agency,

such as child and/or adult protective

services, family court, or juvenile court;

c. In the case of a child or a

vulnerable adult, accept a crime report

to law enforcement or to a child or adult

protective services agency from a

mandated reporter or other person

knowledgeable about the crime;

d. Accept proof of the completion of

a medical evidentiary examination, such

as medical reports, x-rays, medical

photographs, and other clinical

assessments as evidence of cooperation

with law enforcement.

4. Nonsupplantation. The state must

certify that grants received under VOCA

will not be used to supplant state funds

otherwise available to provide crime

victim compensation benefits or to

administer the state crime victim

compensation program. States may not

decrease their financial commitment to

crime victim compensation solely

because they are receiving VOCA funds

for the same purpose. Expenditure of

VOCA funds received based on state

certified payouts from previous years

does not constitute supplantation.

5. Compensation for Residents

Victimized Outside Their Own State. A

state must provide compensation to

state residents who are victims of crimes

occurring outside the state if the crimes

would be compensable crimes had they

occurred inside that state and the crimes

(1) occurred in a state without an

eligible VOCA crime victim

compensation program, or (2) in cases of

terrorism, occurred outside the

territorial jurisdiction of the United

States. The state must make these

awards according to the same criteria

used to make awards to those who are

victimized while in the state.

6. Compensation for Nonresidents of

a State. The state, in making awards for

compensable crimes occurring within

the state, must make compensation

awards to nonresidents of the state on

the basis of the same criteria used to

make awards to victims who are

residents of the state.

7. Victims of Federal Crime. The state

must provide compensation to victims

of federal crimes occurring within the

state on the same basis that the program

provides compensation to victims of

state crimes.

8. Unjust Enrichment. States cannot

deny compensation to a victim based on

the victim’s familial relationship to the

offender or because the victim shares a

residence with the offender. States must

adopt a rule or other written policy to

avoid unjust enrichment of the offender,

but it cannot have the effect of denying

compensation to a substantial

percentage of victims of violence

perpetrated by family members or others

with whom the victim shares a

residence. In developing a rule, or other

written policy, states are encouraged to

consider the following:

a. The legal responsibilities of the

offender to the victim under the laws of

the state and collateral resources

available from the offenders to the

victim. For example, legal

responsibilities of the offender may

Federal Register / Vol. 66, No. 95 / Wednesday, May 16, 2001 / Notices 27163

include court-ordered restitution or

family support under the domestic,

marital property or child support laws

of the state. Collateral resources may

include insurance or pension benefits

available to the offender to cover the

costs incurred by the victim as a result

of the crime. Victims of family violence

must not be penalized when collateral

sources of payment are not viable.

Examples of such situations include

when the offender refuses to, or cannot,

pay restitution or other civil judgments

within a reasonable period of time or

when the offender impedes direct or

third party (i.e., insurance) payments.

b. Payments to victims of family

violence that only minimally or

inconsequentially benefit offenders.

These payments are not considered

unjust enrichment. For example, denial

of medical or dental expenses solely

because the offender has legal

responsibility for the charges, but is

unwilling or unable to pay them, could

result in the victim not receiving

treatment. When indicated, the state has

the option of seeking reimbursement

from the offender.

c. Consultation with social services

and other concerned government

entities, and with private organizations

that support and advocate on behalf of

victims of violence perpetrated by

family members.

d. The special needs of child

witnesses to violence and child victims

of criminal violence, especially when

the perpetrator is a parent who may or

may not live in the same residence.

9. Discrimination Prohibited. No

person shall on the grounds of race,

color, religion, national origin,

disability, or sex, be excluded from

participation in, denied the benefits of,

subjected to discrimination under, or

denied employment in connection with,

any undertaking funded in whole or in

part with sums made available under

VOCA. States must comply with these

VOCA nondiscrimination requirements,

the Federal civil rights statutes and

regulations cited in the Assurances that

accompany the grant award document,

and all other applicable civil rights

requirements. States with decentralized

operations must assure that all

operations comply with these

requirements.

10. Additional Information Requested

by the OVC Director. The state must

provide other information and

assurances as the Director of OVC may

reasonably require.

C. VOCA Funds and Collateral Federal

Programs

1. Means Testing. Federal, state, or

local government programs that use

federal funds are prohibited from

including victim compensation benefits

when determining income eligibility for

an applicant, until the total amount of

medical or other assistance that the

applicant receives from all programs is

sufficient to fully compensate the

applicant for losses suffered as a result

of the crime. VOCA requires this policy

when an applicant needs medical or

other assistance, in full or in part,

because of the commission of a crime

against the applicant. VOCA gives the

OVC Director authority to determine

whether such medical or other

assistance is necessary to an applicant

for victim compensation because of the

commission of a crime against the

applicant. Through these Final

Guidelines, the Director’s authority is

delegated to state VOCA crime victim

compensation administrators.

2. Payor of Last Resort. The

compensation program is the payor of

last resort with regard to federal or

federally financed programs. When a

victim is eligible to receive benefits

from a federal program such as

Veterans’ benefits, Medicare, and Social

Security Disability or federally financed

state or local program, such as Medicaid

the state compensation program shall

not use VOCA funds to pay costs that

another federal or federally financed

program covers. The federal or federally

financed program must make payments

without regard to benefits awarded to a

crime victim by a state crime victim

compensation program.

To facilitate victim access to other

funding resources, OVC recommends

that VOCA compensation administrators

coordinate their activities and provide

appropriate referrals to other programs

that provide financial assistance and

services to crime victims, whether

funded by federal, state or local

governments. Examples of such

programs include worker’s

compensation, vocational rehabilitation,

and VOCA victim assistance subgrantee

programs. Outreach to other programs

can result in mutual understanding of

eligibility requirements, application

processing, time lines, and other

program specific requirements. As payor

of last resort, it is in the compensation

program’s discretion to make exception

for victim needs that are not adequately

met by collateral sources. Additionally,

this provision does not mandate that

states require victims to apply for or use

other federally funded programs prior to

accessing the crime victim

compensation program.

V. State Certifications

State grantees must provide

information about crime victim

compensation claim payouts including

all available funding sources,

deductions, and recovery costs on a

certification form provided by OVC. The

Office of Budget and Management

Services, Office of Justice Programs,

uses this information to calculate

allocations for VOCA eligible crime

victim compensation programs.

A. Program Revenue. States must

report on the certification form all

sources of revenue to the crime victims

compensation programs during the

federal fiscal year. In some instances,

funds are made available to the crime

victim compensation programs from

other departments or agencies, from

supplemental appropriations,

donations, or unspent funds carried

over from prior years. The amount of

certified revenue, excluding VOCA

funds, but including all other sources,

including carried over funds, must meet

or exceed the amount of certified

payments to crime victims.

B. Program Expenditures. The total

amount to be certified by the state

program must include only those

amounts paid from state funding

sources that are allowable under Section

IV.B.1&2 to, or on behalf of, crime

victims during the federal fiscal year

(October 1 to September 30).

C. Amounts to be Excluded.

Compensation for property damage or

loss except for items found in Section

IV.B.2.(b)ii.4&5 of these Final

Guidelines; audit costs; personnel costs;

costs related to the collection of

offender fines, fees, penalties, and other

revenues that provide basic program

funding; and, any other program

administrative costs.

D. Deductions. Deductions are

receipts or refunds that offset or reduce

expense items that are allocable to a

particular crime victim compensation

claim. These include funds received

through a state’s subrogation interest in

a claimant’s civil law suit recovery,

restitution, refunds, or other

reimbursements. For purposes of

applicable credits, the term restitution

means payment made by the offender to

the victim who was injured in the

crime, to the legal guardian of a

vulnerable adult or child, or to

beneficiaries of the victim of homicide.

Restitution does not refer to the costs

of general collection of fines, fees and

other penalties from offenders that

provides the basic revenue for the

compensation program and are not

attributable to reimbursement of

payouts on a specific claim. Refunds

include amounts from overpayment,

erroneous payments made to claimants,

and uncashed checks. Additional

guidance regarding applicable credits

27164 Federal Register / Vol. 66, No. 95 / Wednesday, May 16, 2001 / Notices

can be found in OMB Circular A–87,

Cost Principles for State and Local

Governments.

F. Recovery Costs. Salary and benefits

costs for personnel directly involved in

recovery efforts may be offset against the

amount of income received from such

reimbursement. Recovery efforts are

those activities that are directly

attributable to obtaining restitution,

refunds, and other reimbursements for

the expenses of specific crime victims

who have received compensation from

the state program. Expenses shall be

limited to the percentage of those

salaries and benefits incurred by the

state for individual employees whose

primary responsibilities (not less than

75 percent of each individual

employee’s work time) are directly and

specifically related to recovering

restitution and other reimbursements on

behalf of compensated victims.

Additional allowable recovery costs are

garnishment fees, service of legal

documents, costs of legal publication,

and subpoena fees related to collecting

reimbursements. Recovery costs cannot

be claimed for employees whose salary

and benefits are derived from federal

administrative grant funds. Recovery

costs do not include the collection of

fines, fees, and other penalties that

provide the basic revenue for the

compensation program and are not

identifiable to reimbursement of

payouts on a specific victim claim.

G. Sources of Payments to Crime

Victims. There is no financial

requirement that state compensation

programs identify the source of

individual payments to crime victims as

either federal or state dollars, nor are

there any requirements that restitution

recoveries or other refunds be tracked to

federal or state dollars paid out to the

victim.

H. Incorrect Certifications. If it is

determined that a state has made an

incorrect certification of payments of

crime victims compensation from state

funding sources and a VOCA crime

victim compensation grant is awarded

in error, one of the following two

courses of action will be taken:

1. Overcertification. In the event that

an overcertification comes to the

attention of OVC or the Office of the

Comptroller, OJP, the necessary steps

will be taken to recover funds that were

awarded in error. OVC does not have

the authority to permit states to keep

amounts they were not entitled to as a

result of overcertification. Generally, it

is the policy of OVC to reduce the

amount of the subsequent year VOCA

victim compensation award by the

amount of the overpayment.

2. Undercertification. If a state

undercertifies amounts paid to crime

victims, OVC and the Office of the

Comptroller, OJP, will not supplement

payments to the state to correct the

state’s error since this would require

recalculating allocations to every state

VOCA compensation and assistance

program and cause disruption in

administration of these programs.

VI. Application Process and

Performance Reporting

A. Application for Federal Assistance.

Each year, OVC issues to each eligible

state an application package that

contains the necessary forms and

detailed information required to apply

for VOCA crime victim compensation

grant funds. The amount for which each

state may apply is included with the

application package. States shall use the

Standard Form 424, Application for

Federal Assistance, and its attachments

to apply for VOCA victim compensation

grant funds. Applications for VOCA

crime victim compensation grants may

only be submitted by the state agency

designated by the governor to

administer the VOCA victim

compensation program and grant.

Completed applications must be

submitted on or before the stated

deadline, as determined by OVC. If an

eligible state fails to apply for its crime

victim compensation allocation by the

prescribed deadline, OVC will

redistribute federal VOCA crime victim

compensation dollars to the VOCA

victim assistance grant program, after all

states have received the statutorily

prescribed percentage of their prior

years’ payout.

B. Annual Performance Report. States

receiving VOCA crime victim

compensation grant funds must submit

an annual OVC Performance Report.

The Performance Report is due January

15 of each year for the preceding federal

fiscal year.

VII. Administrative Costs

A. Administrative Costs Allowance.

VOCA allows states to use up to 5

percent of crime victim compensation

grant funds for administering the crime

victim compensation grant program.

Any portion of the allowable 5 percent

that is not used for administrative

purposes must be used for awards of

compensation to crime victims.

The intent of this provision is to

support and advance program

administration in all operational areas

including claims processing, staff

development and training, public

outreach, and program funding by

supporting activities that will improve

program effectiveness and service to

crime victims. If a state elects to use up

to 5 percent of the VOCA compensation

grant for administrative purposes, only

those costs directly associated with

administering the program, enhancing

overall program operations, and

ensuring compliance with federal

requirements can be expended with

administrative grant funds. State

grantees are not required to match the

portion of the grant that is used for

administrative purposes. The state

administrative agency may charge a

federally approved indirect cost rate to

this grant, but this cost is capped by the

limits of these 5 percent administrative

funds.

States must certify that VOCA funds

used for administrative purposes will

not supplant state or local funds but

increase the amount of funds available

for administering the compensation

program. For the purpose of establishing

a baseline level of effort, states must

maintain documentation on the overall

administrative commitment of the state

prior to their use of VOCA

administrative grant funds. State

grantees will not be in violation of the

nonsupplantation clause if there is a

decrease in the state’s previous financial

commitment toward the administration

of the VOCA grant programs in the

following situations: (1) if serious loss of

revenue occurs at the state level,

resulting in across-the-board budget

restrictions, and (2) if there is a decrease

in the number of state-supported staff

positions used to meet the state’s effort

in administering the VOCA grant

programs. State grantees using

administrative funds must notify OVC if

there is a decrease in the amount of its

previous state financial commitment to

the cost of administering the VOCA

program.

Only staff activities directly related to

compensation functions can be funded

with VOCA administrative funds.

Similarly, any equipment purchases or

other expenditures charged to the VOCA

administrative funds can be charged

only in proportion to the percentage of

time used by the compensation

program.

B. Allowable Costs. Allowable

administrative costs include but are not

limited to, the following:

1. Salaries and benefits for staff and

consultant fees to administer and

manage the financial and programmatic

aspects of the crime victim

compensation program. Staff supported

by administrative funds under the

VOCA crime victim compensation grant

must work directly for the

compensation program in the same

proportion as their level of support from

VOCA grant funds. If the staff performs

Federal Register / Vol. 66, No. 95 / Wednesday, May 16, 2001 / Notices 27165

other functions unrelated to the

provision of compensation to crime

victims, the proportion of time spent

working on the compensation program

must be documented using some

reasonable method of valuation at

regular measurable intervals, e.g., time

and attendance records. The

documentation must provide a clear

audit trail for the expenditure of grant

funds.

Temporary or periodic personnel

support, such as qualified peer

reviewers for medical and mental health

claims, and data processing support

services are also allowable. These

services may be obtained through means

deemed acceptable by state

administrative procedures.

2. Training and technical assistance

includes attendance at training and

technical assistance meetings and

conferences that address issues relevant

to state administration of victim

compensation programs. Allowable

costs may include travel, registration

fees, and other such expenses.

3. Monitoring compliance with

federal and state requirements.

4. Automation, including the study,

design, and implementation of claims

processing and other relevant systems;

purchase and maintenance of

equipment for the state grantee,

including computers, software, FAX

machines, copying machines, and TTYs;

and services required to support the use

of technology to enhance services to

crime victims.

5. Training to victim services

providers, criminal justice personnel,

and health, mental health and social

services providers about the crime

victim compensation program.

6. Memberships in crime victim

organizations and victim-related

informational materials.

7. Prorated program audit costs for the

crime victim compensation program.

8. Indirect costs at a federally

approved rate that, when applied, does

not exceed the 5 percent administrative

cost allowance.

9. Participation in improving

coordination efforts on behalf of crime

victims with other federal, state, and

local agencies and organizations. This

includes development of protocols,

policies, and procedures that promote

coordination of victim compensation

with other financial and victim service

programs that improve responses to

crime victims. Such participation

includes the development and

coordination of criminal crisis response

teams.

10. Informational materials including

development of applications, brochures,

posters, training manuals and other

relevant publications that describe the

compensation application process,

eligibility criteria, and the range of

benefits available for crime victims.

This includes related printing costs.

11. Development of strategic and

financial plans, conduct of surveys, and

needs assessments, survey of victim

satisfaction with the program, and

employment of geographic information

systems (GIS) technology for planning.

12. Toll-free telephone numbers,

Internet access to claim information,

and other such program enhancements.

C. Requirements to Notify OVC of Use

of Administrative Funds. State grantees

that elect to use administrative funds

under the VOCA compensation grant are

required to include with their annual

application, notification of their intent

to use administrative funds, the

percentage of funds, and the purposes

for which they will be used. Grantees

will be expected to include in their

annual performance report,

documentation of actual use of

administrative funds.

D. Confidentiality of Research

Information. Except as otherwise

provided by federal law, no officer or

employee of the Federal Government or

recipient of monies under VOCA shall

use or reveal any research or statistical

information gathered under this

program by any person, and identifiable

to any specific private person, for any

purpose other than the purpose for

which such information was obtained,

in accordance with VOCA. Such

information, and any copy of such

information, shall be immune from legal

process and shall not, without the

consent of the person furnishing such

information, be admitted as evidence or

used for any purpose in any action, suit,

or other judicial, legislative, or

administrative proceeding.

This provision is intended, among

other things, to assure confidentiality of

information provided by crime victims

to employees of VOCA-funded victim

compensation programs. However, there

is nothing in VOCA or its legislative

history to indicate that Congress

intended to override or repeal, in effect,

a state’s existing law governing the

disclosure of information, which is

supportive of VOCA’s fundamental goal

of helping crime victims. For example,

this provision would not act to override

or repeal, in effect, a state’s existing law

pertaining to the mandatory reporting of

a suspected child abuse. See Pennhurst

State School and Hospital vs.

Halderman, et al., 451 U.S. 1 (1981).

VIII. Financial Requirements

As a condition of receiving a grant,

states must agree to ensure adherence to

the general and specific requirements of

the OJP Financial Guide (effective

edition) and all applicable OMB

Circulars and Common Rules. This

includes the maintenance of books and

records in accordance with generally

accepted government accounting

principles. For copies of the OJP

Financial Guide, call or write the OJP

Office of the Comptroller, 810 7th Street

NW., Washington, DC 20531, Customer

Service Center 1/800–458–0786; or visit

the website at: www.ojp.usdoj.gov/

FinGuide/

IX. Monitoring

A. Office of the Comptroller/General

Accounting Office/Office of the

Inspector General. The U.S. Department

of Justice, Office of Justice Programs,

Office of the Comptroller; the General

Accounting Office; and the U.S.

Department of Justice, Office of the

Inspector General, conduct periodic

reviews of the financial policies and

procedures and records of VOCA state

grantees. Therefore, upon request, states

must provide authorized representatives

with access to examine all records,

books, papers, case files, or other

documents related to the expenditure of

funds received under this grant.

B. Office for Victims of Crime. OVC

conducts onsite monitoring in

accordance with its monitoring plan.

While on the site, OVC personnel

review various documents and files

including (1) Program manuals; (2)

procedures; (3) program reports; (4)

claimant application, eligibility

requirements, and determination and

appeal process; (5) a random sampling

of victim compensation claim files; and

(6) other applicable state records and

files. Grantees are notified in writing of

their compliance with requirements of

VOCA.

X. Suspension and Termination of

Funding

If, after reasonable notice to the

grantee, OVC finds that a state has failed

to comply substantially with the

following: VOCA, the state’s application

for funding, the OJP Financial Guide

(effective edition), the Final VOCA

Crime Victim Compensation Grant

Program Guidelines, or any

implementing regulation or federal

requirements, the OVC Director may

suspend or terminate funding to the

state and/or take other appropriate

action. Under the procedures of 28 CFR

part 18, states may request a hearing on

the record on the justification for the

suspension and/or termination of VOCA

funds.

27166 Federal Register / Vol. 66, No. 95 / Wednesday, May 16, 2001 / Notices

Dated: May 10, 2001.

Kathryn M. Turman,

Director, Office for Victims of Crime.

[FR Doc. 01–12256 Filed 5–15–01; 8:45 am]

BILLING CODE 4410–18–P

NATIONAL FOUNDATION FOR THE

ARTS AND HUMANITIES

Institute of Museum and Library

Services, Office of Research and

Technology

Submission for OMB Review,

Comment Request; Museum School

Partnership Research

AGENCY: Institute of Museum and

Library Services, NFAH.

ACTION: Notice.

SUMMARY: The Institute of Museum

Services has submitted the following

public information request to the Office

of Management and Budget for review

and approval in accordance with the

Paperwork Reduction Act of 1995 (Pub.

L. 104–13, 44 U.S.C. Chapter 35).

Currently, the Institute of Museum and

Library Services is soliciting comments

concerning a new collection entitled,

Museum School Partnership Research.

A copy of the proposed instrument,

with applicable supporting

documentation, may be obtained by

calling the Institute of Museum and

Library Services, Director, Office of

Research and Technology, Rebecca

Danvers (202) 606–2478. Individuals

who use a telecommunications device

for the deaf (TTY/TDD) may call (202)

606–8636.

Comments should be sent to Office of

Information and Regulatory Affairs,

Attn.: OMB Desk Officer for Education,

Office of Management and Budget,

Room 10235, Washington, DC 20503

(202) 395–7316, by June 15, 2001.

The OMB is particularly interested in

comments which:

• Evaluate whether the proposed

collection of information is necessary

for the proper performance of the

functions of the agency, including

whether the information will have

practical utility;

• Evaluate the accuracy of the

agency’s estimate of the burden of the

proposed collection of information,

including the validity of the

methodology and assumptions used;

• Enhance the quality, utility, and

clarity of the information to be

collected; and

• Minimize the burden of the

collection of information on those who

are to respond, including through the

use of appropriate automated,

electronic, mechanical, or other

technological collection techniques or

other forms of information technology,

e.g., permitting electronic submission of

responses.

BACKGROUND: 

Type of Review: New.

Agency: Institute of Museum and

Library Services.

Title: Museum School Partnership

Research.

OMB Number: N/A.

Affected Public: Museums.

Total Respondents: 1,500.

Frequency: Once.

Total Responses: 1,500.

Average Time per Response: 90

minutes.

Estimated Total Burden Hours: 2,250

hours.

Total Burden Cost (capital/startup):

$0.

Total Burden Cost (operating/

maintenance): $0.

FOR FURTHER INFORMATION CONTACT:

Mamie Bittner, Director, Public and

Legislative Affairs, Institute of Museum

and Library Services, 1100 Pennsylvania

Ave., NW., Washington, DC 20506.

Dated: May 10, 2001.

Mamie Bittner,

Director, Public and Legislative Affairs.

[FR Doc. 01–12262 Filed 5–15–01; 8:45 am]

BILLING CODE 7036–01–M

NUCLEAR REGULATORY

COMMISSION

[Docket Nos. 50–390, 50–327, 50–328, 50–

269, 50–260, 50–296; License Nos. NPF–90,

DPR–77, DPR–79, DPR–33, DPR–52, DPR–

68 EA 99–234]

Tennessee Valley Authority, Watts Bar

Nuclear Plant, Unit 1, Sequoyah

Nuclear Plant, Units 1 & 2, Browns

Ferry Nuclear Plant, Units 1, 2 & 3;

Order Imposing Civil Monetary Penalty

I

Tennessee Valley Authority

(Licensee) is the holder of Operating

License Nos. NPF–90, DPR–77, DPR–79,

DPR–33, DPR–52, DPR–68, issued by

the Nuclear Regulatory Commission

(NRC or Commission) on February 7,

1996, September 17, 1980, September

15, 1981, December 20, 1973, August 2,

1974, and July 2, 1976. The licenses

authorize the Licensee to operate Watts

Bar Nuclear Plant, Unit 1, Sequoyah

Nuclear Plant, Units 1 and 2, and

Browns Ferry Nuclear Plant, Units 1, 2,

and 3, in accordance with the

conditions specified therein.

II

An investigation of the Licensee’s

activities was completed on August 4,

1999. The results of this investigation

indicated that the Licensee had not

conducted its activities in full

compliance with NRC requirements. A

written Notice of Violation and

Proposed Imposition of Civil Penalty

(Notice) was served upon the Licensee

by letter dated February 7, 2000. The

Notice states the nature of the violation,

the provision of the NRC’s requirements

that the Licensee had violated, and the

amount of the civil penalty proposed for

the violation.

The Licensee responded to the Notice

in letters dated January 22, 2001, and

March 9, 2001. In its response, the

Licensee denied the violation and

protested the proposed imposition of a

civil penalty.

III

After consideration of the Licensee’s

response and the statements of fact,

explanation, and argument for

mitigation contained therein, the NRC

staff has determined that the violation

occurred as stated and that the penalty

proposed for the violation designated in

the Notice should be imposed.

IV

In view of the foregoing and pursuant

to Section 234 of the Atomic Energy Act

of 1954, as amended (Act), 42 U.S.C.

2282, and 10 CFR 2.205, it is hereby

ordered that:

The Licensee pay a civil penalty in

the amount of $110,000 within 30 days

of the date of this Order, in accordance

with NUREG/BR–0254. In addition, at

the time of making the payment, the

Licensee shall submit a statement

indicating when and by what method

payment was made, to the Director,

Office of Enforcement, U.S. Nuclear

Regulatory Commission, One White

Flint North, 11555 Rockville Pike,

Rockville, MD 20852–2738.

V

The Licensee may request a hearing

within 30 days of the date of this Order.

Where good cause is shown,

consideration will be given to extending

the time to request a hearing. A request

for extension of time must be made in

writing to the Director, Office of

Enforcement, U.S. Nuclear Regulatory

Commission, Washington, DC 20555,

and include a statement of good cause

for the extension. A request for a

hearing should be clearly marked as a

‘‘Request for an Enforcement Hearing’’

and shall be submitted to the Secretary,

U.S. Nuclear Regulatory Commission,

ATTN: Rulemakings and Adjudications

Staff, Washington, DC 20555. Copies

also shall be sent to the Director, Office

of Enforcement, U.S. Nuclear Regulatory