This section of the FEDERAL REGISTER

contains regulatory documents having general

applicability and legal effect, most of which

are keyed to and codified in the Code of

Federal Regulations, which is published under

50 titles pursuant to 44 U.S.C. 1510.

The Code of Federal Regulations is sold by

the Superintendent of Documents. Prices of

new books are listed in the first FEDERAL

REGISTER issue of each week.

Rules and Regulations Federal Register

28149 

Vol. 74, No. 113 

Monday, June 15, 2009 

OFFICE OF MANAGEMENT AND 

BUDGET 

2 CFR Parts 1 and 182 

Guidance for Drug-Free Workplace 

Requirements (Financial Assistance) 

AGENCY: Office of Federal Financial 

Management, Office of Management and 

Budget. 

ACTION: Final guidance. 

SUMMARY: The Office of Management 

and Budget (OMB) is issuing guidance 

on drug-free workplace requirements for 

financial assistance. The guidance 

conforms with the common rule that 31 

Federal agencies published on 

November 26, 2003 and therefore makes 

no substantive change to Federal 

policies and procedures in this area. 

The agencies issued the common rule 

after resolving public comments 

received in response to a Notice of 

Proposed Rulemaking. 

OMB is issuing this guidance as an 

administrative simplification that will 

streamline the policy framework for 

drug-free workplace requirements in 

two ways. First, the guidance is in a 

form suitable for Federal agency 

adoption, which will reduce the volume 

of Federal regulations on drug-free 

workplace requirements, make it easier 

for the affected public to use them, and 

make it easier and less expensive for the 

Federal Government to maintain them. 

Second, the guidance is located in the 

recently established title 2 of the Code 

of Federal Regulations (2 CFR). Locating 

the OMB guidance in 2 CFR will make 

it easier to find. As a further 

simplification for the public, the OMB 

guidance then will be in the same CFR 

title as the agencies’ regulations that 

implement the guidance. 

This notice also makes a minor 

change to the previously issued 2 CFR 

part 1, to conform that part with the 

guidance published today. 

DATES: The effective date for this final 

guidance is July 15, 2009. 

FOR FURTHER INFORMATION CONTACT: 

Marguerite Pridgen, Office of Federal 

Financial Management, Office of 

Management and Budget, telephone 

(202) 395–7844 (direct) or (202) 395– 

3993 (main office) and e-mail: 

mpridgen@omb.eop.gov. 

SUPPLEMENTARY INFORMATION: In a 

Federal Register document published 

on September 26, 2008 [73 FR 55776], 

OMB proposed to issue drug-free 

workplace guidance for grants and 

cooperative agreements and make a 

minor conforming change to 2 CFR part 

1. The proposal was the first step 

toward replacing a common rule that 

Federal agencies issued to implement 

the Drug-Free Workplace Act of 1988, as 

it applies to grants (Pub. L. 100–690, 

title V, subtitle D, enacted November 18, 

1988). See the Supplementary 

Information section of the September 

26, 2008, Federal Register document for 

more background information about the 

agencies’ common rule, the proposed 

OMB guidance, title 2 of the Code of 

Federal Regulations in which the 

guidance and agency regulations will be 

located, and the benefits of replacing a 

common rule with adoptable guidance. 

In response to the September 2008 

proposal, OMB received one comment 

noting a typographical error. We 

therefore are finalizing the guidance as 

proposed, with the error corrected. 

Next steps. Each Federal agency that 

is a signatory to the drug-free workplace 

common rule will issue a brief rule in 

its chapter of 2 CFR to adopt the OMB 

guidance on drug-free workplace, as 

required under sections 182.20 through 

182.35 of the guidance. The rule will 

give regulatory effect to the OMB 

guidance for the agency’s financial 

assistance awards and recipients. The 

agency also will remove the full text of 

the November 2003 common rule from 

its own CFR title. We expect to 

complete the process in calendar year 

2010. 

List of Subjects 

2 CFR Part 1 

Cooperative agreements, Grant 

programs, Grants administration. 

2 CFR Part 182 

Administrative practice and 

procedure, Drug abuse, Grant programs, 

Reporting and recordkeeping 

requirements. 

Danny Werfel, 

Deputy Controller. 

Authority and Issuance 

■ For the reasons set forth above, the 

Office of Management and Budget 

amends 2 CFR, subtitle A, as follows: 

PART 1—[AMENDED] 

■ 1. The authority citation for part 1 

continues to read as follows: 

Authority: 31 U.S.C. 503; 31 U.S.C. 1111; 

41 U.S.C. 405; Reorganization Plan No. 2 o 

1970; E.O. 11541, 35 FR 10737, 3 CFR, 1966– 

1970, p. 939. 

■ 2. Section 1.215 is revised to read as 

follows: 

§ 1.215 Relationship to previous 

issuances. 

Although some of the guidance was 

organized differently within OMB 

circulars or other documents, much of 

the guidance in this subtitle existed 

prior to the establishment of title 2 of 

the CFR. Specifically: 

Guidance in * * * On * * * Previously was in * * * 

(a) Chapter I, part 180 ....................................... Nonprocurement debarment and suspension OMB guidance that conforms with the government-wide common rule (see 60 FR 33036, 

June 26, 1995). 

(b) Chapter I, part 182 ....................................... Drug-free workplace requirements .................. OMB guidance (54 FR 4946, January 31, 

1989) and a government-wide common rule 

(as amended at 68 FR 66534, November 

26, 2003). 

(c) Chapter II, part 215 ....................................... Administrative requirements for grants and 

agreements.

OMB Circular A–110. 


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Guidance in * * * On * * * Previously was in * * * 

(d) Chapter II, part 220 ...................................... Cost principles for educational institutions ...... OMB Circular A–21. 

(e) Chapter II, part 225 ...................................... Cost principles for State, local, and Indian 

tribal governments.

OMB Circular A–87. 

(f) Chapter II, part 230 ....................................... Cost principles for non-profit organizations ..... OMB Circular A–122. 

(g) [Reserved]. 

CHAPTER I—[AMENDED] 

■ 3. Part 182 is added to Chapter I, to 

read as follows: 

PART 182—GOVERNMENTWIDE 

REQUIREMENTS FOR DRUG-FREE 

WORKPLACE (FINANCIAL 

ASSISTANCE) 

Sec. 

182.5 What does this part do? 

182.10 How is this part organized? 

182.15 To whom does the guidance apply? 

182.20 What must a Federal agency do to 

implement the guidance? 

182.25 What must a Federal agency address 

in its implementation of the guidance? 

182.30 Where does a Federal agency 

implement the guidance? 

182.35 By when must a Federal agency 

implement the guidance? 

182.40 How is the guidance maintained? 

Subpart A—Purpose and Coverage 

182.100 How is this part written? 

182.105 Do terms in this part have special 

meanings? 

182.110 What do subparts A through F of 

this part do? 

182.115 Does this part apply to me? 

182.120 Are any of my Federal assistance 

awards exempt from this part? 

182.125 Does this part affect the Federal 

contracts that I receive? 

Subpart B—Requirements for Recipients 

Other Than Individuals 

182.200 What must I do to comply with this 

part? 

182.205 What must I include in my drugfree workplace statement? 

182.210 To whom must I distribute my 

drug-free workplace statement? 

182.215 What must I include in my drugfree awareness program? 

182.220 By when must I publish my drugfree workplace statement and establish 

my drug-free awareness program? 

182.225 What actions must I take 

concerning employees who are convicted 

of drug violations in the workplace? 

182.230 How and when must I identify 

workplaces? 

Subpart C—Requirements for Recipients 

Who Are Individuals 

182.300 What must I do to comply with this 

part if I am an individual recipient? 

Subpart D—Responsibilities of Agency 

Awarding Officials 

182.400 What are my responsibilities as an 

agency awarding official? 

Subpart E—Violations of This Part and 

Consequences 

182.500 How are violations of this part 

determined for recipients other than 

individuals? 

182.505 How are violations of this part 

determined for recipients who are 

individuals? 

182.510 What actions will the Federal 

Government take against a recipient 

determined to have violated this part? 

182.515 Are there any exceptions to those 

actions? 

Subpart F—Definitions 

182.605 Award. 

182.610 Controlled substance. 

182.615 Conviction. 

182.620 Cooperative agreement. 

182.625 Criminal drug statute. 

182.630 Debarment. 

182.635 Drug-free workplace. 

182.640 Employee. 

182.645 Federal agency or agency. 

182.650 Grant. 

182.655 Individual. 

182.660 Recipient. 

182.665 State. 

182.670 Suspension. 

Authority: 41 U.S.C. 701, et seq. 

§ 182.5 What does this part do? 

This part provides Office of 

Management and Budget (OMB) 

guidance for Federal agencies on the 

portion of the Drug-Free Workplace Act 

of 1988 (41 U.S.C. 701–707, as 

amended) that applies to grants. It also 

applies the provisions of the Act to 

cooperative agreements and other 

financial assistance awards, as a matter 

of Federal Government policy. 

§ 182.10 How is this part organized? 

This part is organized in two 

segments. 

(a) Sections 182.5 through 182.40 

contain general policy direction for 

Federal agencies’ use of the uniform 

policies and procedures in subparts A 

through F of this part. 

(b) Subparts A through F of this part 

contain uniform governmentwide 

policies and procedures for Federal 

agency use to specify the— 

(1) Types of awards that are covered 

by drug-free workplace requirements; 

(2) Drug-free workplace requirements 

with which a recipient must comply; 

(3) Actions required of an agency 

awarding official; and 

(4) Consequences of a violation of 

drug-free workplace requirements. 

§ 182.15 To whom does the guidance 

apply? 

This part provides OMB guidance 

only to Federal agencies. Publication of 

this guidance in the Code of Federal 

Regulations does not change its nature— 

it is guidance and not regulation. 

Federal agencies’ implementation of the 

guidance governs the rights and 

responsibilities of other persons affected 

by the drug-free workplace 

requirements. 

§ 182.20 What must a Federal agency do to 

implement the guidance? 

To comply with the requirement in 

Section 41 U.S.C. 705 for 

Governmentwide regulations, each 

Federal agency that awards grants or 

cooperative agreements or makes other 

financial assistance awards that are 

subject to the drug-free workplace 

requirements in subparts A through F of 

the guidance must issue a regulation 

consistent with those subparts. 

§ 182.25 What must a Federal agency 

address in its implementation of the 

guidance? 

Each Federal agency’s implementing 

regulation: 

(a) Must establish drug-free workplace 

policies and procedures for that 

agency’s awards that are consistent with 

the guidance in this part. When adopted 

by a Federal agency, the provisions of 

the guidance have regulatory effect for 

that agency’s awards. 

(b) Must address some matters for 

which the guidance in this part gives 

the agency discretion. Specifically, the 

regulation must— 

(1) State whether the agency: 

(i) Has a central point to which a 

recipient may send the notification of a 

conviction that is required under 

§ 182.225(a) or § 182.300(b); or 

(ii) Requires the recipient to send the 

notification to the awarding official for 

each agency award, or to his or her 

official designee. 

(2) Either: 

(i) State that the agency head is the 

official authorized to determine under 

§ 182.500 or § 182.505 that a recipient 

has violated the drug-free workplace 

requirements; or 

(ii) Provide the title of the official 

designated to make that determination. 

(c) May also, at the agency’s option, 

identify any specific types of financial 


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assistance awards, in addition to grants 

and cooperative agreements, to which 

the Federal agency makes this guidance 

applicable. 

§ 182.30 Where does a Federal agency 

implement the guidance? 

Each Federal agency that awards 

grants or cooperative agreements or 

makes other financial assistance awards 

that are subject to the drug-free 

workplace guidance in this part must 

issue a regulation implementing the 

guidance within its chapter in subtitle B 

of this title of the Code of Federal 

Regulations. 

§ 182.35 By when must a Federal agency 

implement the guidance? 

Federal agencies must submit 

proposed regulations to the OMB for 

review within nine months of the 

issuance of this part and issue final 

regulations within eighteen months of 

the guidance. 

§ 182.40 How is the guidance maintained? 

The OMB publishes proposed changes 

to the guidance in the Federal Register 

for public comment, considers 

comments with the help of appropriate 

interagency working groups, and then 

issues any changes to the guidance in 

final form. 

Subpart A—Purpose and Coverage 

§ 182.100 How is this part written? 

(a) This part uses a ‘‘plain language’’ 

format to make it easier for the general 

public and business community to use 

and understand. The section headings 

and text, often in the form of questions 

and answers, must be read together. 

(b) Pronouns used within this part, 

such as ‘‘I’’ and ‘‘you,’’ change from 

subpart to subpart depending on the 

audience being addressed. 

§ 182.105 Do terms in this part have 

special meanings? 

This part uses terms that have special 

meanings. Those terms are defined in 

subpart F of this part. 

§ 182.110 What do subparts A through F of 

this part do? 

Subparts A through F of this part 

specify standard policies and 

procedures to carry out the Drug-Free 

Workplace Act of 1988 for financial 

assistance awards. 

§ 182.115 Does this part apply to me? 

(a) Portions of this part apply to you 

if you are either— 

(1) A recipient of a Federal assistance 

award (see definitions of award and 

recipient in §§ 182.605 and 182.660, 

respectively); or 

(2) A Federal agency awarding 

official. 

(b) The following table shows the 

subparts that apply to you: 

If you are * * * See subparts * * * 

(1) a recipient who is not an individual ............................................................................................................................... A, B and E. 

(2) a recipient who is an individual ..................................................................................................................................... A, C and E. 

(3) a Federal agency awarding official ............................................................................................................................... A, D and E. 

§ 182.120 Are any of my Federal 

assistance awards exempt from this part? 

This part does not apply to any award 

to which the agency head, or his or her 

designee, determines that the 

application of this part would be 

inconsistent with the international 

obligations of the United States or the 

laws or regulations of a foreign 

government. 

§ 182.125 Does this part affect the Federal 

contracts that I receive? 

This part will affect future contract 

awards indirectly if you are debarred or 

suspended for a violation of the 

requirements of this part, as described 

in § 182.510(c). However, this part does 

not apply directly to procurement 

contracts. The portion of the Drug-Free 

Workplace Act of 1988 that applies to 

Federal procurement contracts is carried 

out through the Federal Acquisition 

Regulation in chapter 1 of Title 48 of the 

Code of Federal Regulations (the drugfree workplace coverage currently is in 

48 CFR part 23, subpart 23.5). 

Subpart B—Requirements for 

Recipients Other Than Individuals 

§ 182.200 What must I do to comply with 

this part? 

There are two general requirements if 

you are a recipient other than an 

individual. 

(a) First, you must make a good faith 

effort, on a continuing basis, to maintain 

a drug-free workplace. You must agree 

to do so as a condition for receiving any 

award covered by this part. The specific 

measures that you must take in this 

regard are described in more detail in 

subsequent sections of this subpart. 

Briefly, those measures are to— 

(1) Publish a drug-free workplace 

statement and establish a drug-free 

awareness program for your employees 

(see §§ 182.205 through 182.220); and 

(2) Take actions concerning 

employees who are convicted of 

violating drug statutes in the workplace 

(see § 182.225). 

(b) Second, you must identify all 

known workplaces under your Federal 

awards (see § 182.230). 

§ 182.205 What must I include in my drugfree workplace statement? 

You must publish a statement that— 

(a) Tells your employees that the 

unlawful manufacture, distribution, 

dispensing, possession, or use of a 

controlled substance is prohibited in 

your workplace; 

(b) Specifies the actions that you will 

take against employees for violating that 

prohibition; and 

(c) Lets each employee know that, as 

a condition of employment under any 

award, he or she: 

(1) Will abide by the terms of the 

statement; and 

(2) Must notify you in writing if he or 

she is convicted for a violation of a 

criminal drug statute occurring in the 

workplace and must do so no more than 

five calendar days after the conviction. 

§ 182.210 To whom must I distribute my 

drug-free workplace statement? 

You must require that a copy of the 

statement described in § 182.205 be 

given to each employee who will be 

engaged in the performance of any 

Federal award. 

§ 182.215 What must I include in my drugfree awareness program? 

You must establish an ongoing drugfree awareness program to inform 

employees about— 

(a) The dangers of drug abuse in the 

workplace; 

(b) Your policy of maintaining a drugfree workplace; 

(c) Any available drug counseling, 

rehabilitation, and employee assistance 

programs; and 

(d) The penalties that you may impose 

upon them for drug abuse violations 

occurring in the workplace. 

§ 182.220 By when must I publish my 

drug-free workplace statement and 

establish my drug-free awareness 

program? 

If you are a new recipient that does 

not already have a policy statement as 

described in § 182.205 and an ongoing 


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awareness program as described in 

§ 182.215, you must publish the 

statement and establish the program by 

the time given in the following table: 

If * * * Then you * * * 

(a) the performance period of the award is less than 30 days ................ must have the policy statement and program in place as soon as possible, but before the date on which performance is expected to be 

completed. 

(b) the performance period of the award is 30 days or more .................. must have the policy statement and program in place within 30 days 

after award. 

(c) you believe there are extraordinary circumstances that will require 

more than 30 days for you to publish the policy statement and establish the awareness program.

may ask the agency awarding official to give you more time to do so. 

The amount of additional time, if any, to be given is at the discretion 

of the awarding official. 

§ 182.225 What actions must I take 

concerning employees who are convicted 

of drug violations in the workplace? 

There are two actions you must take 

if an employee is convicted of a drug 

violation in the workplace: 

(a) First, you must notify Federal 

agencies if an employee who is engaged 

in the performance of an award informs 

you about a conviction, as required by 

§ 182.205(c)(2), or you otherwise learn 

of the conviction. Your notification to 

the Federal agencies must— 

(1) Be in writing; 

(2) Include the employee’s position 

title; 

(3) Include the identification 

number(s) of each affected award; 

(4) Be sent within ten calendar days 

after you learn of the conviction; and 

(5) Be sent to every Federal agency on 

whose award the convicted employee 

was working. It must be sent to every 

awarding official or his or her official 

designee, unless the Federal agency has 

specified a central point for the receipt 

of the notices. 

(b) Second, within 30 calendar days of 

learning about an employee’s 

conviction, you must either– 

(1) Take appropriate personnel action 

against the employee, up to and 

including termination, consistent with 

the requirements of the Rehabilitation 

Act of 1973 (29 U.S.C. 794), as 

amended; or 

(2) Require the employee to 

participate satisfactorily in a drug abuse 

assistance or rehabilitation program 

approved for these purposes by a 

Federal, State or local health, law 

enforcement, or other appropriate 

agency. 

§ 182.230 How and when must I identify 

workplaces? 

(a) You must identify all known 

workplaces under each agency award. A 

failure to do so is a violation of your 

drug-free workplace requirements. You 

may identify the workplaces— 

(1) To the agency official that is 

making the award, either at the time of 

application or upon award; or 

(2) In documents that you keep on file 

in your offices during the performance 

of the award, in which case you must 

make the information available for 

inspection upon request by agency 

officials or their designated 

representatives. 

(b) Your workplace identification for 

an award must include the actual 

address of buildings (or parts of 

buildings) or other sites where work 

under the award takes place. Categorical 

descriptions may be used (e.g., all 

vehicles of a mass transit authority or 

State highway department while in 

operation, State employees in each local 

unemployment office, performers in 

concert halls or radio studios). 

(c) If you identified workplaces to the 

agency awarding official at the time of 

application or award, as described in 

paragraph (a)(1) of this section, and any 

workplace that you identified changes 

during the performance of the award, 

you must inform the agency awarding 

official. 

Subpart C—Requirements for 

Recipients Who Are Individuals 

§ 182.300 What must I do to comply with 

this part if I am an individual recipient? 

As a condition of receiving a Federal 

agency award, if you are an individual 

recipient, you must agree that— 

(a) You will not engage in the 

unlawful manufacture, distribution, 

dispensing, possession, or use of a 

controlled substance in conducting any 

activity related to the award; and 

(b) If you are convicted of a criminal 

drug offense resulting from a violation 

occurring during the conduct of any 

award activity, you will report the 

conviction: 

(1) In writing. 

(2) Within 10 calendar days of the 

conviction. 

(3) To the Federal agency awarding 

official or other designee for each award 

that you currently have, unless the 

agency designates a central point for the 

receipt of the notices, either in the 

award document or its regulation 

implementing the guidance in this part. 

When notice is made to a central point, 

it must include the identification 

number(s) of each affected award. 

Subpart D—Responsibilities of Agency 

Awarding Officials 

§ 182.400 What are my responsibilities as 

an agency awarding official? 

As a Federal agency awarding official, 

you must obtain each recipient’s 

agreement, as a condition of the award, 

to comply with the requirements in— 

(a) Subpart B of this part, if the 

recipient is not an individual; or 

(b) Subpart C of this part, if the 

recipient is an individual. 

Subpart E—Violations of This Part and 

Consequences 

§ 182.500 How are violations of this part 

determined for recipients other than 

individuals? 

A recipient other than an individual 

is in violation of the requirements of 

this part if the agency head or his or her 

designee determines, in writing, that— 

(a) The recipient has violated the 

requirements of Subpart B of this part; 

or 

(b) The number of convictions of the 

recipient’s employees for violating 

criminal drug statutes in the workplace 

is large enough to indicate that the 

recipient has failed to make a good faith 

effort to provide a drug-free workplace. 

§ 182.505 How are violations of this part 

determined for recipients who are 

individuals? 

An individual recipient is in violation 

of the requirements of this part if the 

agency head or his or her designee 

determines, in writing, that— 

(a) The recipient has violated the 

requirements of Subpart C of this part; 

or 

(b) The recipient is convicted of a 

criminal drug offense resulting from a 

violation occurring during the conduct 

of any award activity. 


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§ 182.510 What actions will the Federal 

Government take against a recipient 

determined to have violated this part? 

If a recipient is determined to have 

violated this part, as described in 

§ 182.500 or § 182.505, the agency may 

take one or more of the following 

actions— 

(a) Suspension of payments under the 

award; 

(b) Suspension or termination of the 

award; and 

(c) Suspension or debarment of the 

recipient under the agency’s regulation 

implementing the OMB guidance on 

nonprocurement debarment and 

suspension (2 CFR part 180), for a 

period not to exceed five years. 

§ 182.515 Are there any exceptions to 

those actions? 

The agency head may waive with 

respect to a particular award, in writing, 

a suspension of payments under an 

award, suspension or termination of an 

award, or suspension or debarment of a 

recipient if the agency head determines 

that such a waiver would be in the 

public interest. This exception authority 

cannot be delegated to any other official. 

Subpart F—Definitions 

§ 182.605 Award. 

Award means an award of financial 

assistance by a Federal agency directly 

to a recipient. 

(a) The term award includes: 

(1) A Federal grant or cooperative 

agreement, in the form of money or 

property in lieu of money. 

(2) A block grant or a grant in an 

entitlement program, whether or not the 

grant is exempted from coverage under 

the Governmentwide rule that 

implements OMB Circular A–102 (for 

availability of OMB circulars, see 5 CFR 

1310.3) and specifies uniform 

administrative requirements. 

(b) The term award does not include: 

(1) Technical assistance that provides 

services instead of money. 

(2) Loans. 

(3) Loan guarantees. 

(4) Interest subsidies. 

(5) Insurance. 

(6) Direct appropriations. 

(7) Veterans’ benefits to individuals 

(i.e., any benefit to veterans, their 

families, or survivors by virtue of the 

service of a veteran in the Armed Forces 

of the United States). 

§ 182.610 Controlled substance. 

Controlled substance means a 

controlled substance in schedules I 

through V of the Controlled Substances 

Act (21 U.S.C. 812), and as further 

defined by regulation at 21 CFR 1308.11 

through 1308.15. 

§ 182.615 Conviction. 

Conviction means a finding of guilt 

(including a plea of nolo contendere) or 

imposition of sentence, or both, by any 

judicial body charged with the 

responsibility to determine violations of 

the Federal or State criminal drug 

statutes. 

§ 182.620 Cooperative agreement. 

Cooperative agreement means an 

award of financial assistance that, 

consistent with 31 U.S.C. 6305, is used 

to enter into the same kind of 

relationship as a grant (see definition of 

grant in § 182.650), except that 

substantial involvement is expected 

between the Federal agency and the 

recipient when carrying out the activity 

contemplated by the award. The term 

does not include cooperative research 

and development agreements as defined 

in 15 U.S.C. 3710a. 

§ 182.625 Criminal drug statute. 

Criminal drug statute means a Federal 

or non-Federal criminal statute 

involving the manufacture, distribution, 

dispensing, use, or possession of any 

controlled substance. 

§ 182.630 Debarment. 

Debarment means an action taken by 

a Federal agency to prohibit a recipient 

from participating in Federal 

Government procurement contracts and 

covered nonprocurement transactions. 

A recipient so prohibited is debarred, in 

accordance with the Federal Acquisition 

Regulation for procurement contracts 

(48 CFR part 9, subpart 9.4) and agency 

regulations implementing the OMB 

guidance on nonprocurement 

debarment and suspension (2 CFR part 

180, which implements Executive 

Orders 12549 and 12689). 

§ 182.635 Drug-free workplace. 

Drug-free workplace means a site for 

the performance of work done in 

connection with a specific award at 

which employees of the recipient are 

prohibited from engaging in the 

unlawful manufacture, distribution, 

dispensing, possession, or use of a 

controlled substance. 

§ 182.640 Employee. 

(a) Employee means the employee of 

a recipient directly engaged in the 

performance of work under the award, 

including— 

(1) All direct charge employees; 

(2) All indirect charge employees, 

unless their impact or involvement in 

the performance of work under the 

award is insignificant to the 

performance of the award; and 

(3) Temporary personnel and 

consultants who are directly engaged in 

the performance of work under the 

award and who are on the recipient’s 

payroll. 

(b) This definition does not include 

workers not on the payroll of the 

recipient (e.g., volunteers, even if used 

to meet a matching requirement; 

consultants or independent contractors 

not on the payroll; or employees of 

subrecipients or subcontractors in 

covered workplaces). 

§ 182.645 Federal agency or agency. 

Federal agency or agency means any 

United States executive department, 

military department, government 

corporation, government controlled 

corporation, any other establishment in 

the executive branch (including the 

Executive Office of the President), or 

any independent regulatory agency. 

§ 182.650 Grant. 

Grant means an award of financial 

assistance that, consistent with 31 

U.S.C. 6304, is used to enter into a 

relationship— 

(a) The principal purpose of which is 

to transfer a thing of value to the 

recipient to carry out a public purpose 

of support or stimulation authorized by 

a law of the United States, rather than 

to acquire property or services for the 

Federal Government’s direct benefit or 

use; and 

(b) In which substantial involvement 

is not expected between the Federal 

agency and the recipient when carrying 

out the activity contemplated by the 

award. 

§ 182.655 Individual. 

Individual means a natural person. 

§ 182.660 Recipient. 

Recipient means any individual, 

corporation, partnership, association, 

unit of government (except a Federal 

agency) or legal entity, however 

organized, that receives an award 

directly from a Federal agency. 

§ 182.665 State. 

State means any of the States of the 

United States, the District of Columbia, 

the Commonwealth of Puerto Rico, or 

any territory or possession of the United 

States. 

§ 182.670 Suspension. 

Suspension means an action taken by 

a Federal agency that immediately 

prohibits a recipient from participating 

in Federal Government procurement 

contracts and covered nonprocurement 

transactions for a temporary period, 

pending completion of an investigation 

and any judicial or administrative 

proceedings that may ensue. A recipient 

so prohibited is suspended, in 


pwalker on PROD1PC71 with RULES
28154 Federal Register / Vol. 74, No. 113 / Monday, June 15, 2009 / Rules and Regulations 

accordance with the Federal Acquisition 

Regulation for procurement contracts 

(48 CFR part 9, subpart 9.4) and agency 

regulations implementing the OMB 

guidance on nonprocurement 

debarment and suspension (2 CFR part 

180, which implements Executive 

Orders 12549 and 12689). Suspension of 

a recipient is a distinct and separate 

action from suspension of an award or 

suspension of payments under an 

award. 

[FR Doc. E9–14019 Filed 6–12–09; 8:45 am] 

BILLING CODE P 

DEPARTMENT OF AGRICULTURE 

Food and Nutrition Service 

7 CFR Part 220 

[FNS–2005–0008] 

RIN 0584–AD50 

School Breakfast Program: Severe 

Need Assistance 

AGENCY: Food and Nutrition Service 

(FNS), USDA. 

ACTION: Affirmation of interim rule as 

final rule. 

SUMMARY: The Department is adopting 

as a final rule, without change, an 

interim rule that amended the 

regulations for the School Breakfast 

Program. The interim rule addresses and 

implements amendments made by 

Section 201 of the Child Nutrition and 

WIC Reauthorization Act of 2004 and 

amends the School Breakfast Program 

(SBP) regulations to eliminate the 

requirement that a school’s costs exceed 

the rate of reimbursement as a criterion 

for receiving the higher severe need 

funding available in the SBP. The rule 

also allows State agencies to provide 

severe need reimbursements to certain 

new schools that are beginning 

participation in the school feeding 

programs and therefore have no 

historical second preceding year 

participation information, as was 

previously required. The rule is 

intended to simplify eligibility for 

severe need reimbursements by 

removing previous restrictions on 

receipt of those payments. This rule 

does not impose new administrative 

requirements on State or local 

governmental entities. 

DATES: Effective on June 15, 2009, the 

Department is adopting as a final rule 

the interim rule published at 70 FR 

66247 on November 2, 2005. 

FOR FURTHER INFORMATION CONTACT: Ms. 

Melissa Rothstein, Child Nutrition 

Division, Food and Nutrition Service at 

(703) 305–2590. 

SUPPLEMENTARY INFORMATION: 

Background 

On November 2, 2005, the Department 

published an interim rule on the School 

Breakfast Program. Section 501(b) of 

Public Law 108–265 states that FNS 

may promulgate interim regulations to 

implement amendments made by 

Section 201 of the Child Nutrition and 

WIC Reauthorization Act of 2004. FNS 

published an interim rule to expedite 

implementation of the rule’s provisions, 

while allowing public input. Comments 

were invited on the rule and the 

comment period ended on May 1, 2006. 

FNS received four public comments, all 

in support of the rule: two from State 

agencies, one from a school district, and 

one from a school. Commenters 

commended FNS for helping severe 

need schools participate in the SBP by: 

• Eliminating the paperwork burden 

associated with documenting costs, and 

• Allowing the Secretary to determine 

severe need funding for new schools 

that do not have historical participation 

information. 

Commenters did not recommend any 

changes to the provisions of the interim 

rule. Therefore, the Department is 

adopting the interim rule as a final rule 

without change. Although there are no 

changes to the rule, the most recent 

School Breakfast Program information 

collection package (OMB Information 

Collection Request 0584–0012), shows 

that the overall burden hours have 

increased due to school food authority 

and school participation. This action 

also affirms information contained in 

the interim rule concerning Executive 

Order 12866, the Regulatory Flexibility 

Act, Executive Order 12988, and the 

Paperwork Reduction Act. Further, for 

this action, the Office of Management 

and Budget has waived its review under 

Executive Order 12866. 

List of Subjects in 7 CFR Part 220 

Grant programs—education, Grant 

programs—health, Infants and children, 

Nutrition, Reporting and recordkeeping 

requirements, School breakfast and 

lunch programs. 

PART 220—SCHOOL BREAKFAST 

PROGRAM: SEVERE NEED 

ASSISTANCE 

Accordingly, the Department is 

adopting as a final rule, without change, 

the interim rule that amended 7 CFR 

Part 220 and was published at 70 FR 

66247 on November 2, 2005. 

Dated: June 3, 2009. 

Julia Paradis, 

Administrator, Food and Nutrition Service. 

[FR Doc. E9–14021 Filed 6–12–09; 8:45 am] 

BILLING CODE 3410–30–P 

DEPARTMENT OF AGRICULTURE 

Federal Crop Insurance Corporation 

7 CFR Part 457 

RIN 0563–AC23 

Common Crop Insurance Regulations, 

Basic Provisions 

AGENCY: Federal Crop Insurance 

Corporation, USDA. 

ACTION: Interim rule. 

SUMMARY: The Federal Crop Insurance 

Corporation (FCIC) amends the 

Common Crop Insurance Regulations, 

Basic Provisions to revise enterprise 

unit provisions to protect the program 

from potential abuse as a result of the 

increased premium subsidies for 

enterprise and whole farm units 

provided by the Food, Conservation, 

and Energy Act of 2008 (2008 Farm 

Bill). 

DATES: This rule is effective June 15, 

2009. Written comments and opinions 

on this rule will be accepted until the 

close of business August 14, 2009 and 

will be considered when the rule is to 

be made final. 

ADDRESSES: Interested persons are 

invited to submit comments, titled 

‘‘Enterprise Unit Interim Rule’’, by any 

of the following methods: 

• By Mail to: Director, Product 

Administration and Standards Division, 

Risk Management Agency, United States 

Department of Agriculture, Beacon 

Facility—Mail Stop 0812, Room 421, 

P.O. Box 419205, Kansas City, MO 

64141–6205. 

• By Express Mail to: Director, 

Product Administration and Standards 

Division, Risk Management Agency, 

United States Department of 

Agriculture, Beacon Facility, Stop 0812, 

9240 Troost Avenue, Kansas City, MO 

64131–3055. 

• E-Mail: DirectorPDD@rma.usda.gov. 

• Federal eRulemaking Portal: http:// 

www.regulations.gov. Follow the 

instructions for submitting comments. 

A copy of each response will be 

available for public inspection and 

copying from 7 a.m. to 4:30 p.m., CST, 

Monday through Friday, except 

holidays, at 6501 Beacon Drive, Stop 

0812, Room 421, Kansas City, MO 

64133–4676. 

FOR FURTHER INFORMATION CONTACT: Erin 

Albright, Risk Management Specialist, 


pwalker on PROD1PC71 with RULES