81_FR_89631 81 FR 89393 - Health and Human Services Grants Regulation

81 FR 89393 - Health and Human Services Grants Regulation

DEPARTMENT OF HEALTH AND HUMAN SERVICES

Federal Register Volume 81, Issue 238 (December 12, 2016)

Page Range89393-89396
FR Document2016-29752

This final rule makes changes to the Department of Health and Human Services' (HHS) adoption of the Office of Management and Budget's (OMB) (``Uniform Administrative Requirements'') published on December 19, 2014 and the technical amendments published by HHS on January 20, 2016. HHS codified the OMB language, with noted modifications as explained in the preamble to the December promulgation. The HHS- specific modifications to the Uniform Administrative Requirements adopted prior regulatory language that was not in conflict with OMB's language, and provided additional guidance to the regulated community. Unlike all of the other modifications to the Uniform Administrative Requirements, these additional changes, although based on existing law or HHS policy, were not previously codified in regulation. HHS sought comment on these proposed changes in a notice of proposed rulemaking published on July 13, 2016. This final rule implements these regulatory changes. It also corrects one typographical error that was recently discovered in the most recent promulgation of the Uniform Administrative Requirements.

Federal Register, Volume 81 Issue 238 (Monday, December 12, 2016)
[Federal Register Volume 81, Number 238 (Monday, December 12, 2016)]
[Rules and Regulations]
[Pages 89393-89396]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2016-29752]


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DEPARTMENT OF HEALTH AND HUMAN SERVICES

45 CFR Part 75

RIN 0991-AC06


Health and Human Services Grants Regulation

AGENCY: Division of Grants, Office of Grants Policy, Oversight, and 
Evaluation, Office of the Assistant Secretary for Financial Resources, 
Department of Health and Human Services.

ACTION: Final rule.

-----------------------------------------------------------------------

SUMMARY: This final rule makes changes to the Department of Health and 
Human Services' (HHS) adoption of the Office of Management and Budget's 
(OMB) (``Uniform Administrative Requirements'') published on December 
19, 2014 and the technical amendments published by HHS on January 20, 
2016. HHS codified the OMB language, with noted modifications as 
explained in the preamble to the December promulgation. The HHS-
specific modifications to the Uniform Administrative Requirements 
adopted prior regulatory language that was not in conflict with OMB's 
language, and provided additional guidance to the regulated community. 
Unlike all of the other modifications to the Uniform Administrative 
Requirements, these additional changes, although based on existing law 
or HHS policy, were not previously codified in regulation. HHS sought 
comment on these proposed changes in a notice of proposed rulemaking 
published on July 13, 2016. This final rule implements these regulatory 
changes. It also corrects one typographical error that was recently 
discovered in the most recent promulgation of the Uniform 
Administrative Requirements.

DATES: This rule is effective on January 11, 2017.

FOR FURTHER INFORMATION CONTACT: Quadira Dantro, MSHS, CRA at (202) 
260-6825.

SUPPLEMENTARY INFORMATION: 

Background

    This final rule makes changes to the HHS's adoption of the Uniform 
Administrative Requirements, Cost Principles, and Audit Requirements 
for Federal Awards published on December 19, 2014 (79 FR 75871) and the 
technical amendments published by HHS on January 20, 2016 (81 FR 3004). 
HHS codified the OMB language, with noted modifications, in 45 CFR part 
75. Unlike all of the other modifications to the Uniform Administrative 
Requirements, these additional changes, although based on existing law 
or HHS policy, were not previously codified in regulation. This final 
rule implements these regulatory changes.
    HHS received 24 relevant comments on the notice of proposed 
rulemaking, half of which were strongly supportive of the proposed 
rule. HHS addresses all of the comments below.

A. Nondiscrimination Provisions

    Comment: HHS received twelve comments on these provisions, all of 
which were strongly supportive of the codification of the 
nondiscrimination provisions in HHS awards and the recognition of same-
sex marriages. Several of these supportive comments also provided 
additional areas for consideration specifically regarding the 
definition of discrimination on the basis of sex. Collectively, the 
comments indicated that HHS should define discrimination on the basis 
of sex explicitly to include discrimination on

[[Page 89394]]

the basis of sex stereotyping, gender identity, sexual orientation, 
pregnancy, intersex traits, and the presence of atypical sex 
characteristics.
    Response: HHS appreciates the comments received, and thanks 
commenters for their positive reactions and helpful suggestions. For 
the time being, HHS does not believe it is necessary to add additional 
categories to the list of non-merit based factors. We note that the 
determination whether a factor is merit-based for purposes of applying 
the prohibition will depend on the nature of the particular grant at 
issue. HHS has therefore decided not to amend the nondiscrimination 
language proposed in 45 CFR 75.300.
    Comment: One comment urged HHS and its partner federal agencies to 
broadly construe age discrimination protections to support young people 
as well as older Americans. The comment noted that while many age 
discrimination laws are enacted with older adults in mind, it is 
important to recognize the stigmatization of young people and 
adolescents, particularly in the healthcare arena.
    Response: HHS agrees that young people and adolescents should have 
access to health care and services free from discrimination. No 
alterations of the regulatory text are necessary to implement these 
protections. We note that, while employment laws enforced by the Equal 
Employment Opportunity Commission apply to applicants and employees 
forty or older, youth have additional rights under other federal, 
state, or local laws. The Age Discrimination Act of 1975 (Age Act), for 
instance, prohibits discrimination against young people and older 
Americans on the basis of age in federally funded programs and 
activities. In some cases, the Age Act permits age distinctions that 
reasonably take into account age as a factor necessary to the normal 
operation or the achievement of any statutory objective. State and 
local discrimination laws may offer broader protection.
    Comment: One commenter indicated that HHS should specify that the 
nondiscrimination provisions included in Sec.  75.300(c) flow down to 
subawards.
    Response: HHS notes that the provisions of 45 CFR part 75 already 
address the flow down of requirements. 45 CFR 75.101(b)(1) stating that 
the terms and conditions of Federal awards flow down to subawards to 
subrecipients unless a particular section of this part or the terms and 
conditions of the Federal award specifically indicate otherwise.
    Comment: Several commenters noted that the provisions of Sec.  
75.300(c) do not apply to funding under the Temporary Assistance for 
Needy Families Program (TANF) (title IV-A of the Social Security Act, 
42, U.S.C. 601-619). These commenters suggested that HHS should provide 
additional guidance to TANF grantees on nondiscrimination.
    Response: HHS appreciates the importance of continued education on 
the full scope of nondiscrimination obligations. The Administration for 
Children and Families shares this commitment.

B. Indirect Cost Rates

    Comment: HHS received three comments regarding the proposed eight 
percent cap on indirect cost rates for foreign organizations. Notably, 
HHS did not receive any comments that objected to the imposition of the 
same eight percent cost cap on indirect cost rates for training grants. 
The comments received suggested that the proposed provision was in 
conflict with Sec.  75.414(f), and that HHS should instead adopt a ten 
percent cap on indirect cost rates for these organizations.
    Response: A non-Federal entity that has never received an indirect 
cost rate that is a foreign organization or foreign public entity, or 
that would conduct a training grant, would be limited to the eight 
percent modified total direct cost rate as articulated in Sec.  
75.414(c)(3). Commenters indicated that this limitation conflicts with 
Sec.  75.414(f), which would permit an entity that had never received 
an indirect cost rate to charge a de minimis rate of ten percent.
    HHS agrees that this is inconsistent, and has added clarifying 
language to paragraph (f) to ensure that there is no conflict.

C. Indian Self Determination and Education Assistance Act

    Comment: HHS received numerous comments, both through the 
regulations.gov portal and separately through the HHS Office of 
Intergovernmental and External Affairs, on the proposed language 
clarifying that applicability of certain provisions of the Uniform 
Administrative Requirements to contracts and compacts awarded pursuant 
to the Indian Self Determination and Education Assistance Act (ISDEAA). 
The comments received requested additional tribal consultation on these 
issues.
    Response: The Department is in the process of conducting this 
tribal consultation, and will proceed as appropriate after that 
consultation has concluded. The regulatory language from the notice of 
proposed rulemaking is not included in this final rule.

D. Other Issues

    HHS received no comments on the portions of the notice of proposed 
rulemaking suggesting changes to the proposed language regarding same-
sex spouses, marriages, and households, payment provisions as applied 
to states, public access to records, or shared responsibility payments. 
Consequently, HHS is finalizing the regulatory language without 
modification. In addition, HHS is amending one provision to correct a 
typographical error that was inadvertently included in the most recent 
promulgation of the Uniform Administrative Requirements, so that the 
HHS promulgation matches the OMB guidance as intended.

Paperwork Reduction Act

    In accordance with the Paperwork Reduction Act of 1995 (44 U.S.C. 
Ch. 3506; 5 CFR 1320 Appendix A.1), HHS reviewed this final rule and 
determined that there are no new collections of information contained 
therein.

Regulatory Flexibility Act

    The Regulatory Flexibility Act requires that an agency provide a 
final regulatory flexibility analysis or to certify that the rule will 
not have a significant economic impact on a substantial number of small 
entities. This final rule aligns 45 CFR part 75 with various regulatory 
and statutory provisions, implements Supreme Court decisions, and 
codifies long-standing policies thus clarifying and enhancing the 
provisions in HHS's interim final guidance issued December 19, 2014, 
and amended on January 20, 2016. In order to ensure that the public 
receives the most value, it is essential that HHS grant programs 
function as effectively and efficiently as possible, and that there is 
a high level of accountability to prevent waste, fraud, and abuse. The 
additions provide enhanced direction for the public and will not have a 
significant economic impact beyond HHS's current regulations.

Executive Order 12866 Determination

    Pursuant to Executive Order 12866, HHS has designated this final 
rule to be economically non-significant. This rule is not being treated 
as a ``significant regulatory action'' under section 3(f) of Executive 
Order 12866. Accordingly, the rule has not been reviewed by the Office 
of Management and Budget.

Unfunded Mandates Reform Act of 1995 Determination

    Section 202 of the Unfunded Mandates Reform Act of 1995 (Unfunded 
Mandates Act) (2 U.S.C. 1532) requires that covered agencies

[[Page 89395]]

prepare a budgetary impact statement before promulgating a rule that 
includes any Federal mandate that may result in the expenditure by 
State, local, and tribal governments, in the aggregate, or by the 
private sector, of $100 million or more in any one year. If a budgetary 
impact statement is required, section 205 of the Unfunded Mandates Act 
also requires covered agencies to identify and consider a reasonable 
number of regulatory alternatives before promulgating a rule. HHS has 
determined that this final rule will not result in expenditures by 
State, local, and tribal governments, or by the private sector, of $100 
million or more in any one year. Accordingly, HHS has not prepared a 
budgetary impact statement or specifically addressed the regulatory 
alternatives considered.

Executive Order 13132 Determination

    HHS has determined that this final rule does not have any 
Federalism implications, as required by Executive Order 13132.

List of Subjects in 45 CFR Part 75

    Accounting, Administrative practice and procedure, Cost principles, 
Grant programs, Grant programs--health, Grants administration, 
Hospitals, Indians, Nonprofit organizations reporting and recordkeeping 
requirements, State and local governments.

    Dated: November 25, 2016.
Sylvia M. Burwell,
Secretary, Department of Health and Human Services.

    For the reasons set forth in the preamble, part 75 of title 45 of 
the Code of Federal Regulations is amended as follows:

PART 75--UNIFORM ADMINISTRATIVE REQUIREMENTS, COST PRINCIPLES, AND 
AUDIT REQUIREMENTS FOR HHS AWARDS

0
1. The authority citation for 45 CFR part 75 continues to read as 
follows:

    Authority: 5 U.S.C. 301.


0
2. Amend Sec.  75.101 by adding paragraph (f) to read as follows:


Sec.  75.101  Applicability.

* * * * *
    (f) Section 75.300(c) does not apply to the Temporary Assistance 
for Needy Families Program (title IV-A of the Social Security Act, 42 
U.S.C. 601-619).


Sec.  75.110  [Amended]

0
3. Amend Sec.  75.110(a) by removing ``75.355'' and adding, in its 
place, ``75.335''.

0
4. Amend Sec.  75.300 by adding paragraphs (c) and (d) to read as 
follows:


Sec.  75.300  Statutory and national policy requirements.

* * * * *
    (c) It is a public policy requirement of HHS that no person 
otherwise eligible will be excluded from participation in, denied the 
benefits of, or subjected to discrimination in the administration of 
HHS programs and services based on non-merit factors such as age, 
disability, sex, race, color, national origin, religion, gender 
identity, or sexual orientation. Recipients must comply with this 
public policy requirement in the administration of programs supported 
by HHS awards.
    (d) In accordance with the Supreme Court decisions in United States 
v. Windsor and in Obergefell v. Hodges, all recipients must treat as 
valid the marriages of same-sex couples. This does not apply to 
registered domestic partnerships, civil unions or similar formal 
relationships recognized under state law as something other than a 
marriage.

0
5. Revise Sec.  75.305(a) to read as follows:


Sec.  75.305  Payment.

    (a)(1) For states, payments are governed by Treasury-State CMIA 
agreements and default procedures codified at 31 CFR part 205 and TFM 
4A-2000 Overall Disbursing Rules for All Federal Agencies.
    (2) To the extent that Treasury-State CMIA agreements and default 
procedures do not address expenditure of program income, rebates, 
refunds, contract settlements, audit recoveries and interest earned on 
such funds, such funds must be expended before requesting additional 
cash payments.
* * * * *

0
6. Revise Sec.  75.365 to read as follows:


Sec.  75.365  Restrictions on public access to records.

    Consistent with Sec.  75.322, HHS awarding agencies may require 
recipients to permit public access to manuscripts, publications, and 
data produced under an award. However, no HHS awarding agency may place 
restrictions on the non-Federal entity that limit public access to the 
records of the non-Federal entity pertinent to a Federal award 
identified in Sec. Sec.  75.361 through 75.364, except for protected 
personally identifiable information (PII) or when the HHS awarding 
agency can demonstrate that such records will be kept confidential and 
would have been exempted from disclosure pursuant to the Freedom of 
Information Act (5 U.S.C. 552) or controlled unclassified information 
pursuant to Executive Order 13556 if the records had belonged to the 
HHS awarding agency. The Freedom of Information Act (5 U.S.C. 552) 
(FOIA) does not apply to those records that remain under a non-Federal 
entity's control except as required under Sec.  75.322. Unless required 
by Federal, state, local, or tribal statute, non-Federal entities are 
not required to permit public access to their records identified in 
Sec. Sec.  75.361 through 75.364. The non-Federal entity's records 
provided to a Federal agency generally will be subject to FOIA and 
applicable exemptions.

0
7. In Sec.  75.414, add paragraphs (c)(1)(i) through (iii) and revise 
the first sentence of paragraph (f) to read as follows:


Sec.  75.414  Indirect (F&A) costs.

* * * * *
    (c) * * *
    (1) * * *
    (i) Indirect costs on training grants are limited to a fixed rate 
of eight percent of MTDC exclusive of tuition and related fees, direct 
expenditures for equipment, and subawards in excess of $25,000;
    (ii) Indirect costs on grants awarded to foreign organizations and 
foreign public entities and performed fully outside of the territorial 
limits of the U.S. may be paid to support the costs of compliance with 
federal requirements at a fixed rate of eight percent of MTDC exclusive 
of tuition and related fees, direct expenditures for equipment, and 
subawards in excess of $25,000; and,
    (iii) Negotiated indirect costs may be paid to the American 
University, Beirut, and the World Health Organization.
* * * * *
    (f) In addition to the procedures outlined in the appendices in 
paragraph (e) of this section, any non-Federal entity that has never 
received a negotiated indirect cost rate, except for those non-Federal 
entities described in paragraphs (c)(1)(i) and (ii) and section 
(D)(1)(b) of appendix VII to this part, may elect to charge a de 
minimis rate of 10% of modified total direct costs (MTDC) which may be 
used indefinitely.* * *
* * * * *

0
8. Add Sec.  75.477 to read as follows:


Sec.  75.477  Shared responsibility payments.

    (a) Payments for failure to maintain minimum essential health 
coverage. Any payments or assessments imposed on an individual or 
individuals pursuant to 26 U.S.C. 5000A(b) as a result of any failure 
to maintain minimum essential coverage as required by 26 U.S.C. 
5000A(a) are not allowable

[[Page 89396]]

expenses under Federal awards from an HHS awarding agency.
    (b) Payments for failure to offer health coverage to employees. Any 
payments or assessments imposed on an employer pursuant to 26 U.S.C. 
4980H as a result of the employer's failure to offer to its full-time 
employees (and their dependents) the opportunity to enroll in minimum 
essential coverage under an eligible employer-sponsored plan are not 
allowable expenses under Federal awards from an HHS awarding agency.

[FR Doc. 2016-29752 Filed 12-9-16; 8:45 am]
 BILLING CODE 4150-24-P



                                                                 Federal Register / Vol. 81, No. 238 / Monday, December 12, 2016 / Rules and Regulations                                                 89393

                                                report containing this action and other                   extend the time within which a petition                PART 52—APPROVAL AND
                                                required information to the U.S. Senate,                  for judicial review may be filed, and                  PROMULGATION OF
                                                the U.S. House of Representatives, and                    shall not postpone the effectiveness of                IMPLEMENTATION PLANS
                                                the Comptroller General of the United                     such rule or action. This action may not
                                                States prior to publication of the rule in                be challenged later in proceedings to                  ■ 1. The authority citation for part 52
                                                the Federal Register. A major rule                        enforce its requirements. See section                  continues to read as follows:
                                                cannot take effect until 60 days after it                 307(b)(2).
                                                                                                                                                                     Authority: 42 U.S.C. 7401 et seq.
                                                is published in the Federal Register.                     List of Subjects in 40 CFR Part 52
                                                This action is not a ‘‘major rule’’ as                                                                           Subpart Z—Mississippi
                                                defined by 5 U.S.C. 804(2).                                 Environmental protection, Air
                                                                                                          pollution control, Incorporation by
                                                   Under section 307(b)(1) of the CAA,                    reference, Intergovernmental relations,                ■ 2. Section 52.1270(e) is amended by
                                                petitions for judicial review of this                     Particulate matter, Reporting and                      adding a new entry ‘‘110(a)(1) and (2)
                                                action must be filed in the United States                 recordkeeping requirements, Volatile                   Infrastructure Requirements for the 2012
                                                Court of Appeals for the appropriate                      organic compounds.                                     Annual PM 2.5 NAAQS’’ at the end of the
                                                circuit by February 10, 2017. Filing a                                                                           table to read as follows:
                                                petition for reconsideration by the                        Dated: November 28, 2016.
                                                                                                          Heather McTeer Toney,                                  § 52. 1270    Identification of plan.
                                                Administrator of this final rule does not
                                                affect the finality of this action for the                Acting Regional Administrator, Region 4.               *       *    *      *      *
                                                purposes of judicial review nor does it                      40 CFR part 52 is amended as follows:                   (e) * * *

                                                                                          EPA APPROVED MISSISSIPPI NON-REGULATORY PROVISIONS
                                                Name of non-regulatory       Applicable geographic            State submittal           EPA approval date                           Explanation
                                                   SIP provision             or nonattainment area           date/effective date


                                                          *                      *                           *                      *                      *                   *                     *
                                                110(a)(1) and (2) Infra-     Mississippi ...................          12/11/2015     12/12/2016, [Insert ci-     With the exception of sections: 110(a)(2)(C)
                                                  structure Require-                                                                   tation of publication      and (J) concerning PSD permitting require-
                                                  ments for the 2012                                                                   in Federal Register].      ments; 110(a)(2)(D)(i)(I) and (II) (prongs 1
                                                  Annual PM 2.5                                                                                                   through 4) concerning interstate transport
                                                  NAAQS.                                                                                                          requirements and the state board majority
                                                                                                                                                                  requirements respecting significant portion
                                                                                                                                                                  of income of section 110(a)(2)(E)(ii).



                                                [FR Doc. 2016–29593 Filed 12–9–16; 8:45 am]               modifications to the Uniform                           19, 2014 (79 FR 75871) and the
                                                BILLING CODE 6560–50–P                                    Administrative Requirements adopted                    technical amendments published by
                                                                                                          prior regulatory language that was not in              HHS on January 20, 2016 (81 FR 3004).
                                                                                                          conflict with OMB’s language, and                      HHS codified the OMB language, with
                                                DEPARTMENT OF HEALTH AND                                  provided additional guidance to the                    noted modifications, in 45 CFR part 75.
                                                HUMAN SERVICES                                            regulated community. Unlike all of the                 Unlike all of the other modifications to
                                                                                                          other modifications to the Uniform                     the Uniform Administrative
                                                45 CFR Part 75                                            Administrative Requirements, these                     Requirements, these additional changes,
                                                                                                          additional changes, although based on                  although based on existing law or HHS
                                                RIN 0991–AC06                                             existing law or HHS policy, were not                   policy, were not previously codified in
                                                                                                          previously codified in regulation. HHS                 regulation. This final rule implements
                                                Health and Human Services Grants                          sought comment on these proposed                       these regulatory changes.
                                                Regulation                                                changes in a notice of proposed                           HHS received 24 relevant comments
                                                AGENCY:  Division of Grants, Office of                    rulemaking published on July 13, 2016.                 on the notice of proposed rulemaking,
                                                Grants Policy, Oversight, and                             This final rule implements these                       half of which were strongly supportive
                                                Evaluation, Office of the Assistant                       regulatory changes. It also corrects one               of the proposed rule. HHS addresses all
                                                Secretary for Financial Resources,                        typographical error that was recently                  of the comments below.
                                                Department of Health and Human                            discovered in the most recent
                                                                                                          promulgation of the Uniform                            A. Nondiscrimination Provisions
                                                Services.
                                                ACTION: Final rule.
                                                                                                          Administrative Requirements.                             Comment: HHS received twelve
                                                                                                          DATES: This rule is effective on January               comments on these provisions, all of
                                                SUMMARY:   This final rule makes changes                  11, 2017.                                              which were strongly supportive of the
                                                to the Department of Health and Human                     FOR FURTHER INFORMATION CONTACT:                       codification of the nondiscrimination
                                                Services’ (HHS) adoption of the Office                    Quadira Dantro, MSHS, CRA at (202)                     provisions in HHS awards and the
                                                of Management and Budget’s (OMB)                          260–6825.                                              recognition of same-sex marriages.
                                                (‘‘Uniform Administrative                                 SUPPLEMENTARY INFORMATION:                             Several of these supportive comments
mstockstill on DSK3G9T082PROD with RULES




                                                Requirements’’) published on December                                                                            also provided additional areas for
                                                19, 2014 and the technical amendments                     Background                                             consideration specifically regarding the
                                                published by HHS on January 20, 2016.                       This final rule makes changes to the                 definition of discrimination on the basis
                                                HHS codified the OMB language, with                       HHS’s adoption of the Uniform                          of sex. Collectively, the comments
                                                noted modifications as explained in the                   Administrative Requirements, Cost                      indicated that HHS should define
                                                preamble to the December                                  Principles, and Audit Requirements for                 discrimination on the basis of sex
                                                promulgation. The HHS-specific                            Federal Awards published on December                   explicitly to include discrimination on


                                           VerDate Sep<11>2014   16:18 Dec 09, 2016   Jkt 241001   PO 00000      Frm 00037   Fmt 4700   Sfmt 4700   E:\FR\FM\12DER1.SGM   12DER1


                                                89394            Federal Register / Vol. 81, No. 238 / Monday, December 12, 2016 / Rules and Regulations

                                                the basis of sex stereotyping, gender                   apply to funding under the Temporary                  D. Other Issues
                                                identity, sexual orientation, pregnancy,                Assistance for Needy Families Program                   HHS received no comments on the
                                                intersex traits, and the presence of                    (TANF) (title IV–A of the Social                      portions of the notice of proposed
                                                atypical sex characteristics.                           Security Act, 42, U.S.C. 601–619). These              rulemaking suggesting changes to the
                                                   Response: HHS appreciates the                        commenters suggested that HHS should                  proposed language regarding same-sex
                                                comments received, and thanks                           provide additional guidance to TANF                   spouses, marriages, and households,
                                                commenters for their positive reactions                 grantees on nondiscrimination.                        payment provisions as applied to states,
                                                and helpful suggestions. For the time                     Response: HHS appreciates the                       public access to records, or shared
                                                being, HHS does not believe it is                       importance of continued education on                  responsibility payments. Consequently,
                                                necessary to add additional categories to               the full scope of nondiscrimination                   HHS is finalizing the regulatory
                                                the list of non-merit based factors. We                 obligations. The Administration for                   language without modification. In
                                                note that the determination whether a                   Children and Families shares this                     addition, HHS is amending one
                                                factor is merit-based for purposes of                   commitment.                                           provision to correct a typographical
                                                applying the prohibition will depend on                                                                       error that was inadvertently included in
                                                the nature of the particular grant at                   B. Indirect Cost Rates
                                                                                                                                                              the most recent promulgation of the
                                                issue. HHS has therefore decided not to                    Comment: HHS received three                        Uniform Administrative Requirements,
                                                amend the nondiscrimination language                    comments regarding the proposed eight                 so that the HHS promulgation matches
                                                proposed in 45 CFR 75.300.                              percent cap on indirect cost rates for                the OMB guidance as intended.
                                                   Comment: One comment urged HHS                       foreign organizations. Notably, HHS did
                                                and its partner federal agencies to                     not receive any comments that objected                Paperwork Reduction Act
                                                broadly construe age discrimination                     to the imposition of the same eight                     In accordance with the Paperwork
                                                protections to support young people as                  percent cost cap on indirect cost rates               Reduction Act of 1995 (44 U.S.C. Ch.
                                                well as older Americans. The comment                    for training grants. The comments                     3506; 5 CFR 1320 Appendix A.1), HHS
                                                noted that while many age                               received suggested that the proposed                  reviewed this final rule and determined
                                                discrimination laws are enacted with                    provision was in conflict with                        that there are no new collections of
                                                older adults in mind, it is important to                § 75.414(f), and that HHS should instead              information contained therein.
                                                recognize the stigmatization of young                   adopt a ten percent cap on indirect cost
                                                people and adolescents, particularly in                                                                       Regulatory Flexibility Act
                                                                                                        rates for these organizations.
                                                the healthcare arena.                                                                                            The Regulatory Flexibility Act
                                                   Response: HHS agrees that young                         Response: A non-Federal entity that
                                                                                                        has never received an indirect cost rate              requires that an agency provide a final
                                                people and adolescents should have                                                                            regulatory flexibility analysis or to
                                                access to health care and services free                 that is a foreign organization or foreign
                                                                                                        public entity, or that would conduct a                certify that the rule will not have a
                                                from discrimination. No alterations of                                                                        significant economic impact on a
                                                the regulatory text are necessary to                    training grant, would be limited to the
                                                                                                                                                              substantial number of small entities.
                                                implement these protections. We note                    eight percent modified total direct cost
                                                                                                                                                              This final rule aligns 45 CFR part 75
                                                that, while employment laws enforced                    rate as articulated in § 75.414(c)(3).
                                                                                                                                                              with various regulatory and statutory
                                                by the Equal Employment Opportunity                     Commenters indicated that this
                                                                                                                                                              provisions, implements Supreme Court
                                                Commission apply to applicants and                      limitation conflicts with § 75.414(f),
                                                                                                                                                              decisions, and codifies long-standing
                                                employees forty or older, youth have                    which would permit an entity that had
                                                                                                                                                              policies thus clarifying and enhancing
                                                additional rights under other federal,                  never received an indirect cost rate to
                                                                                                                                                              the provisions in HHS’s interim final
                                                state, or local laws. The Age                           charge a de minimis rate of ten percent.
                                                                                                                                                              guidance issued December 19, 2014, and
                                                Discrimination Act of 1975 (Age Act),                      HHS agrees that this is inconsistent,              amended on January 20, 2016. In order
                                                for instance, prohibits discrimination                  and has added clarifying language to                  to ensure that the public receives the
                                                against young people and older                          paragraph (f) to ensure that there is no              most value, it is essential that HHS grant
                                                Americans on the basis of age in                        conflict.                                             programs function as effectively and
                                                federally funded programs and                           C. Indian Self Determination and                      efficiently as possible, and that there is
                                                activities. In some cases, the Age Act                  Education Assistance Act                              a high level of accountability to prevent
                                                permits age distinctions that reasonably                                                                      waste, fraud, and abuse. The additions
                                                take into account age as a factor                          Comment: HHS received numerous
                                                                                                                                                              provide enhanced direction for the
                                                necessary to the normal operation or the                comments, both through the
                                                                                                                                                              public and will not have a significant
                                                achievement of any statutory objective.                 regulations.gov portal and separately
                                                                                                                                                              economic impact beyond HHS’s current
                                                State and local discrimination laws may                 through the HHS Office of
                                                                                                                                                              regulations.
                                                offer broader protection.                               Intergovernmental and External Affairs,
                                                   Comment: One commenter indicated                     on the proposed language clarifying that              Executive Order 12866 Determination
                                                that HHS should specify that the                        applicability of certain provisions of the               Pursuant to Executive Order 12866,
                                                nondiscrimination provisions included                   Uniform Administrative Requirements                   HHS has designated this final rule to be
                                                in § 75.300(c) flow down to subawards.                  to contracts and compacts awarded                     economically non-significant. This rule
                                                   Response: HHS notes that the                         pursuant to the Indian Self                           is not being treated as a ‘‘significant
                                                provisions of 45 CFR part 75 already                    Determination and Education                           regulatory action’’ under section 3(f) of
                                                address the flow down of requirements.                  Assistance Act (ISDEAA). The                          Executive Order 12866. Accordingly,
                                                45 CFR 75.101(b)(1) stating that the                    comments received requested additional                the rule has not been reviewed by the
                                                terms and conditions of Federal awards                  tribal consultation on these issues.                  Office of Management and Budget.
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                                                flow down to subawards to                                  Response: The Department is in the
                                                subrecipients unless a particular section               process of conducting this tribal                     Unfunded Mandates Reform Act of
                                                of this part or the terms and conditions                consultation, and will proceed as                     1995 Determination
                                                of the Federal award specifically                       appropriate after that consultation has                 Section 202 of the Unfunded
                                                indicate otherwise.                                     concluded. The regulatory language                    Mandates Reform Act of 1995
                                                   Comment: Several commenters noted                    from the notice of proposed rulemaking                (Unfunded Mandates Act) (2 U.S.C.
                                                that the provisions of § 75.300(c) do not               is not included in this final rule.                   1532) requires that covered agencies


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                                                                 Federal Register / Vol. 81, No. 238 / Monday, December 12, 2016 / Rules and Regulations                                          89395

                                                prepare a budgetary impact statement                    ■ 4. Amend § 75.300 by adding                         U.S.C. 552) or controlled unclassified
                                                before promulgating a rule that includes                paragraphs (c) and (d) to read as follows:            information pursuant to Executive
                                                any Federal mandate that may result in                                                                        Order 13556 if the records had belonged
                                                                                                        § 75.300 Statutory and national policy
                                                the expenditure by State, local, and                                                                          to the HHS awarding agency. The
                                                                                                        requirements.
                                                tribal governments, in the aggregate, or                                                                      Freedom of Information Act (5 U.S.C.
                                                by the private sector, of $100 million or               *     *       *    *     *                            552) (FOIA) does not apply to those
                                                more in any one year. If a budgetary                      (c) It is a public policy requirement of            records that remain under a non-Federal
                                                impact statement is required, section                   HHS that no person otherwise eligible                 entity’s control except as required under
                                                205 of the Unfunded Mandates Act also                   will be excluded from participation in,               § 75.322. Unless required by Federal,
                                                requires covered agencies to identify                   denied the benefits of, or subjected to               state, local, or tribal statute, non-Federal
                                                and consider a reasonable number of                     discrimination in the administration of               entities are not required to permit
                                                regulatory alternatives before                          HHS programs and services based on                    public access to their records identified
                                                promulgating a rule. HHS has                            non-merit factors such as age, disability,            in §§ 75.361 through 75.364. The non-
                                                determined that this final rule will not                sex, race, color, national origin, religion,          Federal entity’s records provided to a
                                                result in expenditures by State, local,                 gender identity, or sexual orientation.               Federal agency generally will be subject
                                                and tribal governments, or by the                       Recipients must comply with this                      to FOIA and applicable exemptions.
                                                private sector, of $100 million or more                 public policy requirement in the
                                                                                                                                                              ■ 7. In § 75.414, add paragraphs (c)(1)(i)
                                                in any one year. Accordingly, HHS has                   administration of programs supported
                                                                                                        by HHS awards.                                        through (iii) and revise the first sentence
                                                not prepared a budgetary impact                                                                               of paragraph (f) to read as follows:
                                                                                                          (d) In accordance with the Supreme
                                                statement or specifically addressed the
                                                                                                        Court decisions in United States v.                   § 75.414   Indirect (F&A) costs.
                                                regulatory alternatives considered.
                                                                                                        Windsor and in Obergefell v. Hodges, all
                                                                                                                                                              *       *    *     *     *
                                                Executive Order 13132 Determination                     recipients must treat as valid the                       (c) * * *
                                                  HHS has determined that this final                    marriages of same-sex couples. This                      (1) * * *
                                                rule does not have any Federalism                       does not apply to registered domestic                    (i) Indirect costs on training grants are
                                                implications, as required by Executive                  partnerships, civil unions or similar                 limited to a fixed rate of eight percent
                                                Order 13132.                                            formal relationships recognized under                 of MTDC exclusive of tuition and
                                                                                                        state law as something other than a                   related fees, direct expenditures for
                                                List of Subjects in 45 CFR Part 75                      marriage.                                             equipment, and subawards in excess of
                                                  Accounting, Administrative practice                   ■ 5. Revise § 75.305(a) to read as                    $25,000;
                                                and procedure, Cost principles, Grant                   follows:                                                 (ii) Indirect costs on grants awarded to
                                                programs, Grant programs—health,                                                                              foreign organizations and foreign public
                                                                                                        § 75.305    Payment.
                                                Grants administration, Hospitals,                                                                             entities and performed fully outside of
                                                Indians, Nonprofit organizations                          (a)(1) For states, payments are
                                                                                                                                                              the territorial limits of the U.S. may be
                                                reporting and recordkeeping                             governed by Treasury-State CMIA
                                                                                                                                                              paid to support the costs of compliance
                                                requirements, State and local                           agreements and default procedures
                                                                                                                                                              with federal requirements at a fixed rate
                                                governments.                                            codified at 31 CFR part 205 and TFM
                                                                                                                                                              of eight percent of MTDC exclusive of
                                                                                                        4A–2000 Overall Disbursing Rules for
                                                  Dated: November 25, 2016.                                                                                   tuition and related fees, direct
                                                                                                        All Federal Agencies.
                                                Sylvia M. Burwell,                                        (2) To the extent that Treasury-State               expenditures for equipment, and
                                                Secretary, Department of Health and Human               CMIA agreements and default                           subawards in excess of $25,000; and,
                                                Services.                                               procedures do not address expenditure                    (iii) Negotiated indirect costs may be
                                                                                                        of program income, rebates, refunds,                  paid to the American University, Beirut,
                                                  For the reasons set forth in the
                                                                                                        contract settlements, audit recoveries                and the World Health Organization.
                                                preamble, part 75 of title 45 of the Code
                                                of Federal Regulations is amended as                    and interest earned on such funds, such               *       *    *     *     *
                                                follows:                                                funds must be expended before                            (f) In addition to the procedures
                                                                                                        requesting additional cash payments.                  outlined in the appendices in paragraph
                                                PART 75—UNIFORM ADMINISTRATIVE                          *     *     *     *     *                             (e) of this section, any non-Federal
                                                REQUIREMENTS, COST PRINCIPLES,                                                                                entity that has never received a
                                                                                                        ■ 6. Revise § 75.365 to read as follows:
                                                AND AUDIT REQUIREMENTS FOR HHS                                                                                negotiated indirect cost rate, except for
                                                AWARDS                                                  § 75.365 Restrictions on public access to             those non-Federal entities described in
                                                                                                        records.                                              paragraphs (c)(1)(i) and (ii) and section
                                                ■ 1. The authority citation for 45 CFR                    Consistent with § 75.322, HHS                       (D)(1)(b) of appendix VII to this part,
                                                part 75 continues to read as follows:                   awarding agencies may require                         may elect to charge a de minimis rate of
                                                    Authority: 5 U.S.C. 301.                            recipients to permit public access to                 10% of modified total direct costs
                                                                                                        manuscripts, publications, and data                   (MTDC) which may be used
                                                ■ 2. Amend § 75.101 by adding
                                                                                                        produced under an award. However, no                  indefinitely.* * *
                                                paragraph (f) to read as follows:
                                                                                                        HHS awarding agency may place                         *       *    *     *     *
                                                § 75.101    Applicability.                              restrictions on the non-Federal entity                ■ 8. Add § 75.477 to read as follows:
                                                *     *     *    *     *                                that limit public access to the records of
                                                  (f) Section 75.300(c) does not apply to               the non-Federal entity pertinent to a                 § 75.477   Shared responsibility payments.
                                                the Temporary Assistance for Needy                      Federal award identified in §§ 75.361                   (a) Payments for failure to maintain
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                                                Families Program (title IV–A of the                     through 75.364, except for protected                  minimum essential health coverage.
                                                Social Security Act, 42 U.S.C. 601–619).                personally identifiable information (PII)             Any payments or assessments imposed
                                                                                                        or when the HHS awarding agency can                   on an individual or individuals
                                                § 75.110    [Amended]                                   demonstrate that such records will be                 pursuant to 26 U.S.C. 5000A(b) as a
                                                ■  3. Amend § 75.110(a) by removing                     kept confidential and would have been                 result of any failure to maintain
                                                ‘‘75.355’’ and adding, in its place,                    exempted from disclosure pursuant to                  minimum essential coverage as required
                                                ‘‘75.335’’.                                             the Freedom of Information Act (5                     by 26 U.S.C. 5000A(a) are not allowable


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                                                89396            Federal Register / Vol. 81, No. 238 / Monday, December 12, 2016 / Rules and Regulations

                                                expenses under Federal awards from an                   Maryland to the State of New York. The                approve any such transfer based on the
                                                HHS awarding agency.                                    approval of the transfer complies with                criteria in § 648.162(e).
                                                   (b) Payments for failure to offer health             the Atlantic Bluefish Fishery                            Maryland and New York have
                                                coverage to employees. Any payments                     Management Plan quota transfer                        requested the transfer of 50,000 lb
                                                or assessments imposed on an employer                   provision. This announcement also                     (22,680 kg) of bluefish commercial
                                                pursuant to 26 U.S.C. 4980H as a result                 informs the public of the revised                     quota from Maryland to New York. Both
                                                of the employer’s failure to offer to its               commercial quotas for Maryland and                    states have certified that the transfer
                                                full-time employees (and their                          New York.                                             meets all pertinent state requirements.
                                                dependents) the opportunity to enroll in                                                                      This quota transfer was requested by
                                                                                                        DATES: Effective December 9, 2016
                                                minimum essential coverage under an                                                                           New York to ensure that its 2016 quota
                                                                                                        through December 31, 2016.
                                                eligible employer-sponsored plan are                                                                          would not be exceeded. The Regional
                                                not allowable expenses under Federal                    FOR FURTHER INFORMATION CONTACT:              Reid    Administrator has approved this quota
                                                awards from an HHS awarding agency.                     Lichwell, Fishery Management                          transfer based on his determination that
                                                [FR Doc. 2016–29752 Filed 12–9–16; 8:45 am]             Specialist, (978) 281–9112.                           the criteria set forth in § 648.162(e)(1)(i)
                                                BILLING CODE 4150–24–P                                                                                        through (iii) have been met. The revised
                                                                                                        SUPPLEMENTARY INFORMATION:
                                                                                                                                                              bluefish quotas for calendar year 2016
                                                                                                        Regulations governing the Atlantic
                                                                                                                                                              are: Maryland, 96,631 lb (43,831 kg);
                                                                                                        bluefish fishery are found in 50 CFR
                                                                                                                                                              and New York, 927,289 lb (420,611 kg).
                                                DEPARTMENT OF COMMERCE                                  648.160 through 648.167. The
                                                                                                                                                              These quota adjustments revise the
                                                                                                        regulations require annual specification
                                                National Oceanic and Atmospheric                                                                              quotas specified in the final rule
                                                                                                        of a commercial quota that is
                                                Administration                                                                                                implementing the 2016–2018 Atlantic
                                                                                                        apportioned among the coastal states
                                                                                                                                                              Bluefish Specifications published on
                                                                                                        from Maine through Florida. The
                                                50 CFR Part 648                                                                                               August 4, 2016 (81 FR 51370), and
                                                                                                        process to set the annual commercial
                                                                                                                                                              reflect all subsequent commercial
                                                [Docket No. 151130999–6225–01]                          quota and the percent allocated to each
                                                                                                                                                              bluefish quota transfers completed to
                                                                                                        state are described in § 648.162.
                                                                                                                                                              date. For information of previous
                                                RIN 0648–XF069                                             The final rule implementing                        transfers for fishing year 2016 visit:
                                                                                                        Amendment 1 to the Bluefish Fishery                   http://go.usa.gov/xZT8H.
                                                Fisheries of the Northeastern United
                                                                                                        Management Plan published in the
                                                States; Atlantic Bluefish Fishery;                                                                            Classification
                                                                                                        Federal Register on July 26, 2000 (65 FR
                                                Quota Transfer
                                                                                                        45844), and provided a mechanism for                    This action is taken under 50 CFR
                                                AGENCY:  National Marine Fisheries                      transferring bluefish quota from one                  part 648 and is exempt from review
                                                Service (NMFS), National Oceanic and                    state to another. Two or more states,                 under Executive Order 12866.
                                                Atmospheric Administration (NOAA),                      under mutual agreement and with the                     Authority: 16 U.S.C. 1801 et seq.
                                                Commerce.                                               concurrence of the Administrator,
                                                                                                        Greater Atlantic Region, NMFS                           Dated: December 7, 2016.
                                                ACTION: Temporary rule; approval of
                                                                                                        (Regional Administrator), can request                 Emily H. Menashes,
                                                quota transfer.
                                                                                                        approval of a transfer of bluefish                    Acting Director, Office of Sustainable
                                                SUMMARY:   NMFS announces its approval                  commercial quota under                                Fisheries, National Marine Fisheries Service.
                                                of a transfer of 2016 commercial                        § 648.162(e)(1)(i) through (iii). The                 [FR Doc. 2016–29720 Filed 12–9–16; 8:45 am]
                                                bluefish quota from the State of                        Regional Administrator must first                     BILLING CODE 3510–22–P
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Document Created: 2018-02-14 09:05:44
Document Modified: 2018-02-14 09:05:44
CategoryRegulatory Information
CollectionFederal Register
sudoc ClassAE 2.7:
GS 4.107:
AE 2.106:
PublisherOffice of the Federal Register, National Archives and Records Administration
SectionRules and Regulations
ActionFinal rule.
DatesThis rule is effective on January 11, 2017.
ContactQuadira Dantro, MSHS, CRA at (202) 260-6825.
FR Citation81 FR 89393 
RIN Number0991-AC06
CFR AssociatedAccounting; Administrative Practice and Procedure; Cost Principles; Grant Programs; Grant Programs-Health; Grants Administration; Hospitals; Indians; Nonprofit Organizations Reporting and Recordkeeping Requirements and State and Local Governments

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