Federal Register / Vol. 60, No. 27 / Thursday, February 9, 1995 / Proposed Rules 7737

amount is increased from $545.09

(26×$2,995×.007) to $571.73

(27×$3,025×.007), effective with the date

of annuity reinstatement, March 1, 1993.

§ 226.92 Effect of recomputation on

spouse and divorced spouse annuity.

The annuity of a spouse or divorced

spouse is recomputed to use the

employee’s recomputed tier I PIA and

tier II rate, if the recomputation results

in a lump-sum payment of more than $5

or an increase in the spouse or divorced

spouse annuity rate of more than $1 a

month. The spouse or divorced spouse

annuity rate is recomputed beginning

with the same date the employee’s

annuity rate is recomputed.

PART 232—SPOUSES’ ANNUITIES—

[REMOVED]

2. For the reasons set out in the

preamble, Part 232— Spouses’

Annuities, is proposed to be removed.

Dated: February 1, 1995.

By Authority of the Board.

Beatrice Ezerski,

Secretary to the Board.

[FR Doc. 95–3278 Filed 2–8–95; 8:45 am]

BILLING CODE 7905–01–P

DEPARTMENT OF STATE

Bureau of International Narcotics

Matters

22 CFR Part 140

[Public Notice 2159]

Prohibition on Assistance to Drug

Traffickers

AGENCY: Bureau of International

Narcotics Matters, Department of State.

ACTION: Proposed rule.

SUMMARY: The Bureau of International

Narcotics Matters plans to issue

regulations to implement Section 487 of

the Foreign Assistance Act of 1961, as

amended (22 U.S.C. Sec. 2291f). Section

487(a) directs the President to take all

reasonable steps to ensure that

assistance provided under the Foreign

Assistance Act or the Arms Export

Control Act is not provided to or

through any individual or entity that the

President knows or has reason to

believe: (1) has been convicted of a

violation of, or a conspiracy to violate,

any law or regulation of the United

States, a State or the District of

Columbia, or a foreign country relating

to narcotic or psychotropic drugs or

other controlled substances; or (2) is or

has been an illicit trafficker in any such

controlled substance or is or has been a

knowing assistor, abettor, conspirator,

or colluder with others in the illicit

trafficking of any such substance. The

law further directs that regulations be

issued to carry out the section and be

submitted to Congress before they take

effect. The proposed regulation will be

set forth in a new part of the Code of

Federal Regulations, 22 CFR part 140,

which will establish a single

governmentwide enforcement

mechanism for Section 487. The

proposed regulations seek to achieve

rigorous statutory enforcement in a

manner consistent with efficient foreign

assistance program administration. They

also seek to ensure protection of the

procedural rights and interests of

assistance recipients.

DATES: Comments due: April 10, 1995.

ADDRESSES: Send comments to: Bureau

of International Narcotics and Law

Enforcement Affairs, Room 7334, 2201 C

Street NW., Washington, DC 20520.

FOR FURTHER INFORMATION CONTACT:

William R. Brownfield, Office of

International Narcotics and Law

Enforcement Affairs, Department of

State, 202–647–0457, or Jo Brooks,

Office of the Legal Adviser, Department

of State, 202–647–7324.

SUPPLEMENTARY INFORMATION: This rule

will implement Section 487 of the

Foreign Assistance Act of 1961, as

amended (22 U.S.C. Sec. 2291f). The

requirements of Section 487 are

described in the Summary, above.

The procedures prescribed by these

regulations apply to assistance under

the Foreign Assistance Act of 1961 and

the Arms Export Control Act. The

regulations are set up in three Subparts:

General (Subpart A, §§ 140.1–140.3);

Applicability (Subpart B, § 104.4); and

Enforcement (Subpart C, §§ 140.5–

140.14).

The General Subpart (Subpart A)

provides a statement of the regulations’

purpose (§ 140.1), based upon the

language of Section 487 of the Foreign

Assistance Act; identifies the authorities

for issuance of the regulations (§ 140.2);

and defines key terms used in the

regulations (§ 140.3). The broad

coverage of the regulations is reflected

in the definitions of drug trafficking

(§ 140.3(b)), money laundering

(§ 140.3(c)), and narcotics offense

(§ 140.3(d)), which are intended to be

comprehensive. As noted in the

definition of drug trafficking, it

encompasses drug-related money

laundering.

Two of the key terms defined in the

regulations are ‘‘covered country’’

(§ 140.3(e)) and ‘‘covered assistance’’

(§ 140.3(f)). The term ‘‘covered country’’

corresponds to those countries listed on

the ‘‘majors list,’’ i.e., the list of major

illicit drug producing countries and

major drug-transit countries, determined

annually by the President and

transmitted to the appropriate

Congressional committees as required

by Chapter 8 of Part I of the Foreign

Assistance Act. The term ‘‘covered

assistance’’ is defined broadly, while

excluding assessed contributions to an

international organization and

assistance that by operation of law is not

subject to Section 487. The definition

further provides that assistance in

amounts less than $100,000 is excluded

unless it pertains to: recipients of

scholarships, fellowships, or participant

training; or a covered individual or

entity reasonably suspected of being or

having been involved in drug

trafficking. These definitions are

intended to ensure rigorous application

of the statutory prohibition on

assistance to drug traffickers, while

fostering efficient program

administration.

For ease of reference, the term

‘‘covered individual or entity’’ is

defined in § 140.4, where it is used,

rather than in the definition section.

Likewise, the term ‘‘key individual’’ is

described in § 140.6(a)(3), where it is

introduced.

The Applicability Subpart (Subpart B)

explains the scope of the regulations.

Their applicability is keyed primarily to

‘‘covered individuals and entities’’ that

receive or provide direct or first-tier

‘‘covered assistance’’ and are located or

providing assistance within a ‘‘covered

country.’’ However, the regulations have

been drafted carefully to ensure they are

given their full statutory scope, i.e., that

they are applied whenever an affected

agency has reasonable grounds to

suspect that a proposed recipient

individual or entity may be or may have

been involved in drug trafficking or may

have been convicted of a narcotics

offense (see § 140.4(c); see also

§§ 140.3(f)(2), 140.7(a), 140.9(a), and

140.11). They are also applicable where

a government agency providing covered

assistance has specifically designated a

recipient beyond the first tier (see

§§ 140.4(c), 140.7(b)). Additionally, the

regulations apply to individuals who

receive a scholarship, fellowship, or

participant training (unless the

assistance is provided through a

multilateral institution or international

organization and the recipient has not

been designated by the agency

providing assistance). Further assurance

that drug traffickers will not receive

assistance is provided by the

requirement that where an agency

providing covered assistance to a

multilateral institution or international
7738 Federal Register / Vol. 60, No. 27 / Thursday, February 9, 1995 / Proposed Rules

organization does not designate the

assistance recipient, the agency’s

agreement with the multilateral

institution or international organization

shall stipulate that such entity is to

make reasonable efforts to ensure that

the assistance is not diverted in support

of drug trafficking (§ 140.7(c)).

The Enforcement Subpart (Subpart C)

contains an overview (§ 140.5), which

outlines the Subpart’s scope. The

applicable review procedures, criteria to

be applied in deciding whether to

withhold assistance or take other

measures, and procedures concerning

violations identified subsequent to the

obligation of funds are set forth in the

Enforcement Subpart. The applicability

of these procedures varies depending on

the nature of the proposed recipient.

The general framework is set forth in

§ 140.6, in the context of covered

assistance to foreign government

entities. Variations of that framework

are set forth in separate sections for:

multilateral institutions and

international organizations (§ 140.7);

recipients of scholarships, fellowships,

and participant training (§ 140.8); nongovernmental entities (§ 140.9); and

intermediate credit institutions (140.10).

(Note: In § 140.9 the use of the phrase

‘‘non-governmental entity’’ is meant to

encompass a broader category of

organizations than might be

encompassed by the term ‘‘nongovernmental organization’’ or its

acronym, ‘‘NGO.’’ As explained in

§ 140.9, it includes not only private

voluntary agencies and educational

institutions, but also for-profit firms and

any other non-governmental

organization.)

The review procedures set forth in the

regulations are applied by the Country

Narcotics Coordinator (as defined in

§ 140.3(a)), who is responsible in the

first instance for reviewing available

information to determine whether a

proposed assistance recipient is to be

denied assistance or whether other

measures are to be taken as a result of

Section 487 of the Foreign Assistance

Act (see § 140.6(a)). An agency

proposing assistance is responsible for

providing the Country Narcotics

Coordinator with the name of each key

individual within a prospective

recipient entity who may be expected to

control or benefit from assistance as

well as other relevant information that

is readily available (§ 140.6(a)(3)).

The regulations provide a two-week

period, extendable if necessary for

another two weeks, within which the

Country Narcotics Coordinator, in

consultation with the head of the agency

proposing assistance or the agency

head’s designee, is to make a final

determination whether to provide or

withhold assistance or take other

measures. Section 140.6(b) outlines the

factors to be considered in determining

whether to withhold assistance or take

other measures.

Section 140.6(b)(4) further provides

that it is the Assistant Secretary for

International Narcotics Matters (rather

than the Country Narcotics

Coordinator), in consultation with

affected bureaus and agencies, who

shall make any decision to withhold

assistance or take other measures based

on information or allegations that a key

individual who is a senior government

official of a foreign government has been

convicted of a narcotics offense or has

been engaged in drug trafficking

(§ 140.6(b)(4)). Personal involvement at

the Assistant Secretary level is

appropriate in such a case because it

involves inherently sensitive foreign

policy issues.

The enforcement procedures

applicable to recipients of scholarships,

fellowships, and participant training

(§ 140.8) and U.S. and foreign nongovernmental entities (§ 140.9) include a

pre-approval certification process. The

regulations specify that false

certification may subject the signatory to

U.S. criminal prosecution under 18

U.S.C. Sec. 1001. (See §§ 140.8(b),

140.9(c).) Although this penalty is

described in the regulations, it is

established independently by the

referenced statute. The identification of

a penalty in the regulations is not meant

to limit the application of any criminal

or civil penalty otherwise applicable.

Section 140.10 concerns the

procedures applicable to intermediate

credit institutions. Such institutions are

to be treated as either foreign

government entities or nongovernmental entities, depending on the

nature of the particular institution.

Section 140.10 also requires that

agreements with such intermediate

credit institutions include a contract

clause concerning a refund procedure

applicable to loans exceeding $1,000

made by any intermediate credit

institution.

Section 140.11 clarifies that the

enforcement procedures established by

§§ 140.6–140.10 are not exhaustive, but

represent only the minimum applicable

procedures implementing Section 487 of

the Foreign Assistance Act.

The remaining provisions of the

regulations, §§ 140.11–140.14, establish

notification and appeal procedures.

Special care has been taken to ensure

that notification will not be done in a

manner that would interfere with any

criminal investigation that may be

ongoing (§ 140.13(b)). A Country

Narcotics Coordinator’s decision to

withhold assistance or take other

measures may be appealed by the

agency proposing such assistance

(§ 140.12). In addition, where the

prospective assistance recipient is a U.S.

entity, U.S. citizen, or permanent U.S.

resident, a Country Narcotics

Coordinator’s preliminary decision to

withhold assistance is referred to the

Assistant Secretary of State for

International Narcotics Matters for

review and action. An adverse decision

affecting a U.S. entity, U.S. citizen, or

permanent U.S. resident may be

contested in accordance with applicable

agency regulations regarding

governmentwide debarment and

suspension (nonprocurement) and

governmentwide requirements for drugfree workplace (grants).

This amendment involves a foreign

affairs function of the United States. It

is exempt from review under Executive

Order 12866 but has been reviewed

internally by the Department to ensure

consistency with the purposes thereof. It

is also excluded from the procedures of

5 U.S.C. Secs. 553 and 554.

List of Subjects in 22 CFR Part 140

Drug traffic control, Foreign aid.

For the reasons set out in the

preamble, 22 CFR subchapter N is

proposed to be amended by adding part

140 to read as follows:

PART 140—PROHIBITION ON

ASSISTANCE TO DRUG TRAFFICKERS

Subpart A—General

140.1 Purpose.

140.2 Authorities.

140.3 Definitions.

Subpart B—Applicability

140.4 Applicability.

Subpart C—Enforcement

140.5 Overview.

140.6 Foreign government entities.

140.7 Multilateral institutions and

international organizations.

140.8 Recipients of scholarships,

fellowships, and participant training.

140.9 Non-governmental entities.

140.10 Intermediate credit institutions.

140.11 Minimum enforcement procedures.

140.12 Interagency appeal procedures.

140.13 Notification to foreign entities and

individuals.

140.14 Notification to and opportunity to

contest for U.S. entities and individuals.

Authority: 22 U.S.C. 2651a.

Subpart A—General

§ 140.1 Purpose.

(a) These regulations implement

Section 487 of the Foreign Assistance

Act of 1961, as amended (22 U.S.C. Sec.

2291f).
Federal Register / Vol. 60, No. 27 / Thursday, February 9, 1995 / Proposed Rules 7739

(b) Section 487(a) directs the

President to ‘‘take all reasonable steps’’

to ensure that assistance under the

Foreign Assistance Act of 1961 (FAA)

and the Arms Export Control Act

(AECA) ‘‘is not provided to or through

any individual or entity that the

President knows or has reason to

believe’’:

(1) has been ‘‘convicted of a violation

of, or a conspiracy to violate, any law

or regulation of the United States, a

State or the District of Columbia, or a

foreign country relating [to] narcotic or

psychotropic drugs or other controlled

substances’’; or

(2) ‘‘is or has been an illicit trafficker

in any such controlled substance or is

or has been a knowing assistor, abettor,

conspirator, or colluder with others in

the illicit trafficking in any such

substance.’’

§ 140.2 Authorities.

Authority to implement FAA Section

487 was delegated by the President to

the Secretary of State by E.O. 12163, as

amended, and further delegated by the

Secretary to the Assistant Secretary for

International Narcotics Matters by

Delegation of Authority No. 145, dated

Feb. 4, 1980 (45 FR 11655), as amended.

§ 140.3 Definitions.

The following definitions shall apply

for purposes of these regulations:

(a) Country Narcotics Coordinator.

The individual assigned by the chief of

mission in each foreign country to

coordinate United States government

policies and activities within a country

related to counternarcotics efforts. As

determined by the State Department’s

Bureau of International Narcotics

Matters, these responsibilities may, as

necessary, be performed by another

person.

(b) Drug trafficking. Any activity

undertaken illicitly to cultivate,

produce, manufacture, distribute, sell,

finance or transport, or otherwise assist,

abet, conspire, or collude with others in

illicit activities relating to, narcotic or

psychotropic drugs, precursor

chemicals, or other controlled

substances, including drug-related

money laundering.

(c) Money laundering. The process

whereby proceeds of criminal activity,

are transported, transferred,

transformed, converted, or intermingled

with legally acquired funds, for the

purpose of concealing or disguising the

true nature, source, disposition,

movement, or ownership of those

proceeds. The goal of money laundering

is to make funds derived from or

associated with illicit activity appear

legally acquired.

(d) Narcotics offense. A violation of,

or a conspiracy to violate, any law or

regulation of the United States, a State

or the District of Columbia, or a foreign

country relating to narcotic or

psychotropic drugs or other controlled

substances.

(e) Covered country. A country that

has been determined by the President to

be either a ‘‘major illicit drug

producing’’ or ‘‘major drug-transit’’

country under Chapter 8 of Part I of the

FAA. The list of covered countries is

maintained by the State Department’s

Bureau of International Narcotics

matters.

(f) Covered assistance. Any assistance

provided by an agency of the United

States government under the FAA or

AECA, except that it does not include:

(1) Assistance that by operation of the

law is not subject to FAA Section 487,

including:

(i) Disaster relief and rehabilitation

provided under Chapter 9 of Part I of the

FAA; and

(ii) Assistance provided to small

farmers when part of a communitybased alternative development program

under Part I or Chapter 4 of Part II of

the FAA;

(2) Assistance in an amount less than

$100,000, except that the procedures in

§ 140.8 for recipients of scholarships,

fellowships, and participant training

shall apply regardless of amount.

However, assistance shall be deemed

covered assistance regardless of amount

if the agency has reasonable grounds to

suspect that a covered individual or

entity may be or may have been

involved in drug trafficking; or

(3) Assessed contributions to an

international organization.

Subpart B—Applicability

§ 140.4 Applicability.

(a) Except as otherwise provided

herein or as otherwise determined by

the Secretary of State or the Secretary’s

designee, the procedures prescribed by

these regulations apply to any ‘‘covered

individual or entity,’’ i.e., any

individual or entity, including any

foreign government entity and any U.S.

or foreign non-governmental entity, that

is:

(1) (i) Receiving or providing covered

assistance under a direct or first-tier

grant, loan, guarantee, cooperative

agreement, contract, or other direct

agreement with an agency of the United

States; or

(ii) Receiving covered assistance in

the form of a scholarship, fellowship, or

participant training, except as provided

in § 140.7(c); and

(2) Located in or providing assistance

within a covered country.

Examples:

(1) Under a $500,000 project grant

agreement with the Agency for International

Development providing covered assistance,

Government A enters into a $150,000

contract with Corporation X. Government A

is a covered entity. However, Corporation X

is not a covered entity because the contract

is not a direct contract with an agency of the

United States.

(2) Under a $1,000,000 grant from the

Department of State providing covered

assistance, Corporation B makes a $120,000

subgrant to University Y for the training of

12 individuals. Corporation B is a covered

entity and the 12 individuals receiving

participant training are covered individuals.

University Y is not a covered entity.

(3) University C receives a $1 million

regional assistance research project grant

from the Agency for International

Development, but only $80,000 is provided

for research in covered countries. University

C is not a covered entity. (However, if

$100,000 or more were provided for research

in a covered country or countries, then

University C would be a covered entity.)

(b) For purposes of § 140.4(a), where

a government agency providing covered

assistance specifically designates a

recipient of such assistance, the

recipient shall be deemed a covered

individual or entity.

(c) Unless otherwise determined by

the Secretary of State or the Secretary’s

designee, these regulations do not apply

to assistance to or through individuals

and entities in non-covered countries.

However, an affected agency shall apply

these regulations if the agency has

reasonable grounds to suspect that an

individual or entity located in or

providing covered assistance in a noncovered country may be or may have

been involved in drug trafficking or may

have been convicted of a narcotics

offense.

Subpart C—Enforcement

§ 140.5 Overview.

This subpart sets forth the

enforcement procedures applicable

pursuant to § 140.4 to the various types

of covered individuals and entities with

respect to covered assistance. Section

140.6 establishes the procedures

applicable to foreign government

entities, including any such entity that

is covered by the definition of a ‘‘foreign

state’’ set forth in the Foreign Sovereign

Immunities Act, 28 U.S.C. Sec. 1603(a).

Section 140.7 establishes the procedures

applicable to multilateral institutions

and international organizations. Section

140.8 establishes the procedures

applicable to recipients of scholarships

and fellowships and participant

trainees. Section 140.9 establishes the

procedures applicable to nongovernmental entities. Section 140.10
7740 Federal Register / Vol. 60, No. 27 / Thursday, February 9, 1995 / Proposed Rules

sets forth additional procedures

applicable to intermediate credit

institutions. Sections 140.11 through

140.14 contain general provisions

related to the enforcement process.

§ 140.6 Foreign government entities.

(a) Review procedures. (1) The

Country Narcotics Coordinator shall be

responsible for establishing a system for

reviewing available information

regarding narcotics offense convictions

and drug trafficking of proposed

assistance recipients under this section

and, except under the circumstances

described in § 140.6(b)(4), determining

whether a proposed recipient is to be

denied such assistance or other

measures are to be taken as a result of

the application of FAA Section 487.

(2) Prior to providing assistance to or

through a proposed recipient, the head

of the agency providing the assistance,

or the agency head’s designee, shall

provide the Country Narcotics

Coordinator in the country in which the

proposed recipient is located or, as

appropriate, where assistance is to be

provided, the information specified in

§ 140.6(a)(3) in order that the Country

Narcotics Coordinator may carry out his

or her responsibilities under these

regulations.

(3) In each case, the agency proposing

the assistance shall provide to the

Country Narcotics Coordinator the name

of each key individual within the entity

who may be expected to control or

benefit from assistance as well as other

relevant identifying information (e.g.,

address, date of birth) that is readily

available. If a question arises concerning

who should be included within the

group of key individuals of an entity,

the head of the agency providing the

assistance, or the agency head’s

designee, shall consult with the Country

Narcotics Coordinator, and the final

decision shall be made by the Country

Narcotics Coordinator.

(4) Within fourteen calendar days

after receiving the name of a proposed

recipient and other relevant

information, the Country Narcotics

Coordinator shall determine whether

any available information may warrant

withholding assistance or taking other

measures under these regulations, based

on the criteria set forth in § 140.6(b). If,

during that period, the Country

Narcotics Coordinator determines that

available information does not so

indicate, he or she shall notify the

proposing agency that the assistance

may be provided to the proposed

recipient.

(5) If, during the initial fourteen-day

period, the Country Narcotics

Coordinator determines that information

exists that may warrant withholding

assistance or taking other measures

under these regulations, then the

Country Narcotics Coordinator shall

have another fourteen calendar days to

make a final determination whether to

provide or withhold the assistance or

take such other measures.

(b) Criteria to be applied. (1) A

decision to withhold assistance or take

other measures shall be based on

knowledge or a reasonable belief that

the proposed recipient individual or

entity, or one or more key individuals

within a proposed recipient entity,

during the past ten years, has:

(i) Been convicted of a narcotics

offense as defined in these regulations;

or

(ii) Been engaged in drug trafficking,

regardless of whether there has been a

conviction.

(2) Factors that may support a

decision to withhold assistance or take

other measures based on the belief that

the proposed recipient has been engaged

in drug trafficking during the past ten

years when there has been no

conviction of such an offense may

include, but are not limited to, the

following:

(i) Admission of participation in such

activities;

(ii) A long record of arrests for drugtrafficking with an unexplained failure

to prosecute by the local government;

(iii) Several reliable and corroborative

reports.

(3) If the Country Narcotics

Coordinator determines that a key

individual (as described in § 140.6(a)(3))

within a proposed recipient entity has

been convicted of a narcotics offense or

has been engaged in drug trafficking

under the terms of these regulations, the

Country Narcotics Coordinator must

then decide whether withholding

assistance or taking other measures in

connection with the entity itself is

warranted. This decision shall be made

in consultation with the head of the

agency proposing the assistance, or the

agency head’s designee. In making this

determination, the Country Narcotics

Coordinator shall take into account:

(i) The extent to which such

individual would have control over

assistance received;

(ii) The extent to which such

individual could benefit personally

from the assistance;

(iii) The degree to which financial or

other resources of the entity itself have

been used to support drug trafficking;

and

(iv) Whether such individual has

acted alone or in collaboration with

others associated with the entity.

(4) A decision to withhold assistance

or to take other measures based on

information or allegations that a key

individual who is a senior government

official of the host nation has been

convicted of a narcotics offense or has

been engaged in drug trafficking shall be

made by the Assistant Secretary for

International Narcotics Matters in

consultation with the affected bureaus

and other interested agencies. For

purposes of these regulations, ‘‘senior

government official’’ includes host

nation officials at or above the vice

minister level, heads of host nation law

enforcement agencies, and general or

flag officers of the host nation armed

forces. In making the decision whether

to withhold assistance or take other

measures because of information or

allegations that a senior government

official of the host nation has engaged

in drug trafficking, the criteria set forth

in §§ 140.6(b)(2) and (3) shall apply.

(c) Violations identified subsequent to

obligation. The foregoing procedures

require a review before funds are

obligated. If, however, subsequent to an

obligation of funds an assistance

recipient is found to have been

convicted of a narcotics offense or to

have been engaged in drug trafficking

(e.g., the head of a recipient entity

changes during the course of an activity

and the new head is found to have been

engaged in drug trafficking), appropriate

action should be taken, including, if

necessary, termination of the assistance.

Agreements shall be written to permit

termination of assistance in such

circumstances.

§ 140.7 Multilateral institutions and

international organizations.

Assistance provided to or through

multilateral institutions or international

organizations is subject to these

regulations as follows:

(a) Where the government agency

providing assistance has reasonable

grounds to suspect that a recipient

multilateral institution or international

organization may be or may have been

involved in drug trafficking, the agency

shall apply the provisions of § 140.6.

(b) Where the government agency

providing assistance designates the

recipient of assistance from the

multilateral institution or international

organization and the designated

recipient is a covered individual or

entity, the agency shall apply the

provisions of these regulations that

would apply if the assistance were

provided directly to the designated

recipient.

(c) Where the government agency

providing assistance does not designate

the recipient of assistance from the
Federal Register / Vol. 60, No. 27 / Thursday, February 9, 1995 / Proposed Rules 7741

multilateral institution or international

organization, these regulations do not

apply to such recipients of assistance,

except that the agency’s agreement with

the multilateral institution or

international organization shall

stipulate that such entity is to make

reasonable efforts to ensure that the

assistance is not diverted in support of

drug trafficking.

Example:

The State Department provides $600,000 to

the United Nations for the United Nations

Drug Control Program, specifically

designating that Government D receive

$150,000 and Corporation E receive $60,000

for programs in a covered country.

Individuals who will receive training are not

specifically designated by the State

Department. The United Nations is a covered

entity based on § 140.4(a)(1)(i); Government

D is a covered entity based on §§ 140.4(b) and

140.7(b); Corporation E is not a covered

entity under §§ 140.4(b) and 140.7(b) because

it has been designated to receive less than

$100,000 in assistance. Participant trainees

are not covered individuals because they fall

under the exception contained in § 140.7(c)

(see also § 140.4(a)(1)(ii)).

§ 140.8 Recipients of scholarships,

fellowships, and participant training.

(a) Procedures. Individuals who are

located in a covered country and who

are proposed recipients of scholarships,

fellowships, or participant training are

subject to the review procedures,

criteria, and procedures concerning

violations identified subsequent to

obligation set forth in § 140.6. Such

review of recipient individuals is in

addition to the provisions applicable to

the entity providing the assistance.

(b) Certifications. Individuals who are

located in a covered country and who

are proposed recipients of scholarships,

fellowships, or participant training shall

also be required to certify prior to

approval that, within the last ten years,

they have not been convicted of a

narcotics offense, have not been engaged

in drug trafficking, and have not

knowingly assisted, abetted, conspired,

or colluded with others in drug

trafficking. False certification may

subject the assistance recipient to U.S.

criminal prosecution under 18 U.S.C.

Sec. 1001 and to withdrawal of

assistance under these regulations.

§ 140.9 Non-governmental entities.

(a) Procedures. Section 140.9 applies

to private voluntary agencies,

educational institutions, for-profit firms,

or any other non-governmental entity. A

non-governmental entity that is not

organized under the laws of the United

States shall be subject to the review

procedures and criteria set forth in

§§ 140.6(a) and (b). A non-governmental

entity that is organized under the laws

of the United States shall not be subject

to such review procedures and criteria.

However, an affected agency shall

follow such procedures if the agency

has reasonable grounds to suspect that

a proposed U.S. non-governmental

entity or a key individual of such entity

may be or may have been involved in

drug trafficking or may have been

convicted, within the last ten years, of

a narcotics offense. Procedures set forth

in § 140.6(c) concerning violations

identified subsequent to obligation shall

apply to both U.S. and foreign nongovernmental entities.

Examples:

(1) A $100,000 grant to a covered U.S.

university for participant training would not

be subject to the review procedures and

criteria in §§ 140.6(a) and (b). However, a

proposed participant would be subject to the

review procedures and criteria in §§ 140.6 (a)

and (b) as part of the agency’s approval

process.

(2) A $100,000 grant to a covered foreign

private voluntary agency for participant

training would be subject to the review

procedures and criteria in §§ 140.6(a) and (b).

In addition, each proposed participant would

be subject to the review procedures and

criteria in §§ 140.6(a) and (b) as part of the

agency’s approval process.

(b) Refunds. A clause shall be

included in grants, contracts, and other

agreements with both U.S. and foreign

non-governmental entities requiring that

assistance provided to or through such

an entity that is found to have been

engaged in drug trafficking, as defined

in these regulations, shall be subject to

refund.

(c) Certifications. Prior to approval of

covered assistance, key individuals (as

described in § 140.6(a)(3)) in both U.S.

and foreign non-governmental entities

shall be required to certify that, within

the last ten years, they have not been

convicted of a narcotics offense, have

not been engaged in drug trafficking and

have not knowingly assisted, abetted,

conspired, or colluded with others in

drug trafficking. False certification may

subject the signatory to U.S. criminal

prosecution under 18 U.S.C. Sec. 1001.

§ 140.10 Intermediate credit institutions.

(a) Treatment as Non-Governmental

Entity or as a Foreign Government

Entity. Intermediate credit institutions

(‘‘ICIs’’) shall be subject to either the

procedures applicable to foreign

government entities or those applicable

to non-governmental entities, depending

on the nature of the specific entity. The

Assistant Secretary for International

Narcotics Matters or the Assistant

Secretary’s designee, in consultation

with the head of the agency proposing

the assistance or the agency head’s

designee, shall determine (consistent

with the definition of ‘‘foreign state’’ set

forth in the Foreign Sovereign

Immunities Act, 28 U.S.C. Sec. 1603(a)

and made applicable by § 140.5)

whether the ICI will be treated as a nongovernmental entity or a foreign

government entity.

(b) Refunds. In addition to measures

required as a consequence of an ICI’s

treatment as a non-governmental entity

or a foreign government entity, a clause

shall be included in agreements with all

ICIs requiring that any loan greater than

$1,000 provided to an individual or

entity found to have been convicted of

a narcotics offense or engaged in drug

trafficking, as defined in these

regulations, shall be subject to refund or

recall.

§ 140.11 Minimum enforcement

procedures.

Sections 140.6 through 140.10

represent the minimum procedures that

each agency is required to apply in

order to implement FAA Section 487.

Under individual circumstances,

however, additional measures may be

appropriate. In those cases, agencies are

encouraged to take additional steps, as

necessary, to ensure that the statutory

restrictions are enforced.

§ 140.12 Interagency appeal procedures.

If the agency proposing the assistance

disagrees with a determination by the

Country Narcotics Coordinator to

withhold assistance or take other

measures, the head of the agency, or the

agency head’s designee, may request

that the determination be reviewed by

the Assistant Secretary of State for

International Narcotics Matters in

coordination with other affected

bureaus and agencies. The assistance

shall continue to be withheld pending

resolution of the appeal.

§ 140.13 Notification to foreign entities and

individuals.

(a) Unless otherwise determined

under § 140.13(b), if a determination has

been made that assistance to a foreign

entity or individual is to be withheld,

suspended, or terminated under these

regulations, the agency administering

such assistance shall so inform the

affected entity or individual. Except as

the agency administering such

assistance and the Country Narcotics

Coordinator may otherwise determine,

the entity or individual shall be notified

solely of the statutory basis for

withholding assistance.

(b) Before such notification, the

Country Narcotics Coordinator shall be

responsible for determining that

notification would not interfere with an

on-going criminal investigation. If an
7742 Federal Register / Vol. 60, No. 27 / Thursday, February 9, 1995 / Proposed Rules

investigation is underway, the Country

Narcotics Coordinator, in consultation

with the investigating agency, shall

determine whether notification is

appropriate or whether other action

should be taken.

§ 140.14 Notification to and opportunity to

contest for U.S. entities and individuals.

(a) If the Country Narcotics

Coordinator makes a preliminary

decision that evidence exists to justify

withholding assistance to a U.S. entity,

U.S. citizen, or permanent U.S. resident,

the matter shall be referred immediately

to the Assistant Secretary of State for

International Narcotics Matters for

appropriate action, to be taken in

coordination with the agency proposing

the assistance.

(b) If a determination has been made

that assistance is to be withheld,

suspended, or terminated under these

regulations, the Assistant Secretary of

State for International Narcotics Matters,

or the Assistant Secretary’s designee,

shall notify the affected U.S. entity, U.S.

citizen, or permanent U.S. resident and

provide such entity or individual with

an opportunity to contest the action in

accordance with the provisions of

applicable agency regulations regarding

governmentwide debarment and

suspension (nonprocurement) and

governmentwide requirements for drugfree workplace (grants) (for example,

regulations set forth in 22 CFR part 137

(State Department) or 22 CFR part 208

(Agency for International

Development)).

Dated: February 1, 1995.

Robert S. Gelbard,

Assistant Secretary for International

Narcotics Matters.

[FR Doc. 95–3279 Filed 2–8–95; 8:45 am]

BILLING CODE 4710–17–P

ENVIRONMENTAL PROTECTION

AGENCY

40 CFR Part 52

[TN–118–1–6083b; TN–101–1–5718b; TN–

110–2–6569b; FRL–5151–7]

Approval and Promulgation of

Implementation Plans: Approval of

Revisions to Tennessee Regulations

AGENCY: Environmental Protection

Agency (EPA)

ACTION: Proposed rule.

SUMMARY: The EPA proposes to approve

the state implementation plan (SIP)

revision submitted by the State of

Tennessee for the purpose of adding

Stage II vapor recovery regulations to

the Nashville nonattainment area. In the

final rules section of this Federal

Register, the EPA is approving the

State’s SIP revision as a direct final rule

without prior proposal because the

Agency views this as a noncontroversial

revision amendment and anticipates no

adverse comments. A detailed rational

for the approval is set forth in the direct

final rule. If no adverse comments are

received in response to that direct final

rule, no further activity is contemplated

in relation to this proposed rule. If EPA

receives adverse comments, the direct

final rule will be withdrawn and all

public comments received will be

addressed in a subsequent final rule

based on this proposed rule. The EPA

will not institute a second comment

period on this document. Any parties

interested in commenting on this

document should do so at this time.

DATES: To be considered, comments

must be received by March 13, 1995.

ADDRESSES: Written comments should

be addressed to:

Alan Powell, Regulatory Planning and

Development Section, Air Programs

Branch, Air, Pesticides & Toxics

Management Division, Region 4

Environmental Protection Agency, 345

Courtland Street, NE., Atlanta, Georgia

30365.

Copies of the material submitted by

Tennessee may be examined during

normal business hours at the following

locations:

Air and Radiation Docket and

Information Center (Air Docket 6102),

U.S. Environmental Protection Agency,

401 M Street, SW., Washington, DC

20460.

Environmental Protection Agency,

Region 4 Air Programs Branch, 345

Courtland Street, NE., Atlanta, Georgia

30365.

Tennessee Department of

Environment and Conservation, L & C

Annex, 9th Floor, 401 Church Street,

Nashville, Tennessee 37243.

Nashville-Davidson County Bureau of

Environmental Health Services,

Metropolitan Health Department, 311–

23rd Avenue, North, Nashville,

Tennessee 37203.

FOR FURTHER INFORMATION CONTACT:

Alan Powell, Regulatory Planning and

Development Section, Air Programs

Branch, Air, Pesticides & Toxics

Management Division, Region 4

Environmental Protection Agency, 345

Courtland Street, NE., Atlanta, Georgia

30365.

The telephone number is 404/347–

3555 extension 4209. Reference file

TN118–1–6083.

SUPPLEMENTARY INFORMATION: For

additional information see the direct

final rule which is published in the

rules section of this Federal Register.

Dated: January 6, 1995.

Patrick M. Tobin,

Acting Regional Administrator.

[FR Doc. 95–3212 Filed 2–8–95; 8:45 am]

BILLING CODE 6560–50–F

40 CFR Part 761

[OPPTS–66019A; FRL–4935–5]

RIN 2070–AB20

Polychlorinated Biphenyls (PCBs);

Manufacturing, Processing, and

Distribution in Commerce Exemptions;

Notice of Informal Hearing

AGENCY: Environmental Protection

Agency (EPA).

ACTION: Notice of Informal Hearing.

SUMMARY: On December 6, 1994, EPA’s

Office of Pollution Prevention and

Toxics published a proposed rule with

respect to 19 petitions for exceptions to

the general prohibitions on the

manufacture, import, processing, and

distribution in commerce of PCBs under

the Toxic Substances Control Act

(TSCA). EPA has received a request for

a hearing on four of the petitions that

seek an exemption to allow the

importation of PCBs from Canada for

disposal in the United States. EPA will

hold a half-day informal public hearing

in the Washington, DC area on the four

petitions. This notice announces the

time and location of that hearing.

DATES: The hearing will take place on

Monday, March 6, 1995, from 9:00 a.m.

to 1:00 p.m. Written requests to

participate in the hearing must be

received on or before February 24, 1995.

If reply comments are submitted, they

must be received on or before March 20,

1995.

ADDRESSES: The hearing will be held at

EPA Headquarters, 401 M St., SW.,

Washington, DC, in the Washington

Information Center (WIC), conference

room number 17 from 9 am to 1 pm.

Three copies of the request to

participate in the informal hearing,

identified with the docket number

OPPTS–66019A must be submitted to:

OPPT Document Control Officer, Attn:

TSCA Docket Receipts (7407), Office of

Pollution Prevention and Toxics, Rm.

G–99, Environmental Protection

Agency, 401 M St., SW., Washington,

DC 20460. See SUPPLEMENTARY

INFORMATION for the type of

information that must be included in

the request and who may participate.

Requests for a waiver to participate in

the informal hearing by those