Source: http://www.fedgovcontracts.com/pe02-114.htm
Timestamp: 2019-02-18 19:35:55
Document Index: 182614396

Matched Legal Cases: ['art 3017', 'art 3021', 'art 26', 'art 29', 'art 21', 'art 24', 'art 21', 'art 24']

7/22/02 Dispatch: Housing and Urban Development - Governmentwide Debarment and Suspension (Nonprocurement)
SUBJECT: Department of Housing and Urban Development (HUD); Governmentwide Debarment and Suspension (Nonprocurement) and Governmentwide Requirements for Drug-Free Workplace (Grants)
SOURCE: Federal Register, July 22, 2002, Vol. 67, No. 140, page 48005
AGENCIES: Office of the Secretary, Departments of Housing and Urban Development (HUD)
SYNOPSIS: HUD is proposing to adopt, with some modifications, the January 23, 2002, proposed governmentwide nonprocurement "common rule" for debarment and suspension and the governmentwide rule implementing the Drug-Free Workplace Act of 1988. HUD is taking this action separately from all the other grantmaking agencies because the Department of Housing and Urban Development Act requires that any HUD proposed or interim final rule that is issued for public comment must be presented for Congressional review for a period of 15 days before publication.
EDITORS'S NOTE: For more on the common rule that all other grantmaking agencies are proposing to adopt, see the January 23, 2002, FEDERAL CONTRACTS DISPATCH "Governmentwide Debarment and Suspension (Nonprocurement) and Governmentwide Requirements for Drug-Free Workplace (Grants)."
The "common rule" format allows each agency to insert the text into its regulations verbatim merely by adding its appropriate Code of Federal Regulations (CFR) section numbers. For example, the Department of Agriculture's regulations at 7 CFR Part 3017, Governmentwide Debarment and Suspension (Nonprocurement), contains the debarment and suspension regulations under a nonprocurement covered transaction. Under the proposed common rule, __.25 is "How is this part organized?" To incorporate the common rule into its regulations, the Department of Agriculture would assign the number 7 CFR 3017.25 to "How is this part organized?", and it would consist of the exact same text as in the common rule (Agriculture's 7 CFR Part 3021, Governmentwide Requirements for Drug-Free Workplace (Grants), would contain the text of the common rule implementing the Drug-Free Workplace Act.) Likewise, the Department of Commerce's corresponding regulations are in 15 CFR Part 26, Governmentwide Debarment and Suspension (Nonprocurement), and Commerce would assign 15 CFR 26.25 to "How is this part organized?", and this section would be identical to Agriculture's 7 CFR 3017.25 (Commerce's 15 CFR Part 29, Governmentwide Requirements for Drug-Free Workplace (Grants), would contain the text of the common rule implementing the Drug-Free Workplace Act.)
HUD is proposing to incorporate the common rule into two separate parts: 24 CFR Part 21, Governmentwide Requirements for Drug-Free Workplace (Grants), and 24 CFR Part 24, Government Debarment and Suspension (Nonprocurement). HUD would assign the number 24 CFR 24.25 to "How is this part organized?", and it would be the same as Agriculture's 7 CFR 3017.25 and Commerce's 15 CFR 36.25.
DATES: Comments must be received on or before September 20, 2002.
ADDRESSES: Comments on this proposed rule should be addressed to the Rules Docket Clerk, Office of General Counsel, Room 10276, Department of Housing and Urban Development, 451 Seventh Street, SW, Washington, DC 20410-0500.
FOR FURTHER INFORMATION CONTACT: Dane Narode, Deputy Chief Counsel for Administrative Proceedings, Departmental Enforcement Center, Department of Housing and Urban Development, 1250 Maryland Avenue, Suite 200, Washington, DC 20024; 202-708-2350; e-mail: Dane_M._Narode@HUD.gov.
SUPPLEMENTAL INFORMATION: On January 23, 2002, a governmentwide common rule was published that proposed substantive changes and amendments to the governmentwide nonprocurement common rule for debarment and suspension and the governmentwide rule implementing the Drug-Free Workplace Act of 1988. However, HUD was not able to participate in the proposed common rule adoption because HUD must present to Congress any proposed or interim rule 15 days before publication. Therefore, HUD has presented this proposed rule to Congress for 15 days, and is now publishing its proposed adoption of the common rule, in which it makes several changes that would best serve HUD's programs. Those changes are:
A new 24 CFR Part 21 would contain the requirements for maintaining a drug-free workplace.
An additional paragraph (c) regarding employment contracts would be added to the "covered transaction" definition in 24 CFR 24.200, What is a covered transaction? HUD's addition states that "in the case of employment contracts that are covered transactions, each salary payment under the contract is a separate covered transaction."
In 24 CFR 24.300, May I enter into a covered transaction with an excluded or disqualified person?, additional paragraph (c) requires participants to ensure it is not entering into a covered transaction with an excluded or disqualified person. However, additional paragraph (d) exempts participants from checking on the exemption status of their principals while making salary payments pursuant to an employment contract.
24 CFR 24.440, What method do I use to communicate those requirements to participants?, would require the inclusion of a term or condition in the transaction, rather than written certifications, to enforce exclusions under HUD transactions.
In 24 CFR 24.995, Principal, the common rule definition of "principal" would be expanded to include 20 examples of persons who have "a critical influence on, or substantive control over, a covered transaction, whether or not employed by the participant." The examples include loan officers, staff appraisers and inspectors, underwriters, bonding companies, etc.
Added to 24 CFR Part 24 would be Subpart J, Limited Denial of Participation (Subpart J is not included in the proposed governmentwide common rule). It is written stylistically to conform to the question and answer format of the proposed common rule. (EDITOR'S NOTE: 24 CFR 24.1100, What is a limited denial of participation?, states, "A limited denial of participation excludes a specific person from participating in a specific program, or programs, within a HUD Field Office's geographic jurisdiction, for a specific period of time. A limited denial of participation is normally issued by a HUD Field Office but may be issued by a Headquarters office.")