Unknown. Interim final rule with request for comments

4,014 words·~18 min read·/register/2007/03/01/07-946·

A research copy — for the controlling text, always check the official state or federal source. Not legal advice.

--- schema: federal-register doc_type: fedreg source_file: FR-2007-03-01.xml --- 72 40 Thursday, March 1, 2007 Contents Agriculture Agriculture Department See Forest Service See Natural Resources Conservation Service Arts Arts and Humanities, National Foundation See National Foundation on the Arts and the Humanities Centers Centers for Disease Control and Prevention NOTICES Meetings: Disease, Disability, and Injury Prevention and Control Special Emphasis Panels, 9342 E7-3653 Civil Civil Rights Commission NOTICES Meetings;

Sunshine Act, 9304 07-980 Commerce Commerce Department See Foreign-Trade Zones Board See International Trade Administration See National Oceanic and Atmospheric Administration Consumer Consumer Product Safety Commission NOTICES Agency information collection activities; proposals, submissions, and approvals, 9310-9311 E7-3628 E7-3629 Customs Customs and Border Protection Bureau NOTICES Agency information collection activities; proposals, submissions, and approvals, 9346-9347 E7-3557 Education Education Department NOTICES Committees; establishment, renewal, termination, etc.:

Reading First Advisory Committee, 9311-9312 E7-3590 Grants and cooperative agreements; availability, etc.: Innovation and improvement— Voluntary Public School Choice Program; technical assistance workshop, 9312 E7-3613 Postsecondary education— American Indian Tribally Controlled Colleges and Universities and Alaska Native and Native Hawaiian-Serving Institutions Program, 9312-9318 E7-3612 Employment Employment and Training Administration NOTICES Reports and guidance documents; availability, etc.:

Rural Industrialization Loan and Grant Program; compliance certification requests, 9362-9363 E7-3544 Energy Energy Department See Federal Energy Regulatory Commission NOTICES Reports and guidance documents; availability, etc.: Distributed generation and rate-related issues that may impede their expansion, potential benefits study, 9318-9319 E7-3565 EPA Environmental Protection Agency RULES Air quality implementation plans; approval and promulgation; various States: North Dakota, 9263-9272 E7-3314 PROPOSED RULES Air quality planning purposes; designation of areas:

Colorado, 9285-9289 E7-3584 NOTICES Agency information collection activities; proposals, submissions, and approvals, 9326-9330 E7-3588 E7-3589 Executive Executive Office of the President See Presidential Documents FAA Federal Aviation Administration RULES Airworthiness directives: Empresa Brasileira de Aeronautica S.A. (EMBRAER), 9237-9238 E7-3363 Class E airspace, 07-902 9238-9239 07-903 PROPOSED RULES Airworthiness directives: Pratt & Whitney, 9276-9281 E7-3561 Airworthiness standards:

Special conditions— Dassault Aviation Model Falcon 7X airplane, 9273-9276 E7-3582 NOTICES Reports and guidance documents; availability, etc.: Airworthiness directives and special airworthiness information bulletins; policy change, 9394-9397 07-921 FCC Federal Communications Commission PROPOSED RULES Television broadcasting: Cable Television Consumer Protection and Competition Act; implementation— Video programming distribution; competition and diversity; exclusive programming contracts prohibition, 9289-9297 E7-3520 NOTICES Agency information collection activities; proposals, submissions, and approvals, 9330-9333 E7-3519 E7-3522 E7-3524 Common carrier services:

Individuals with hearing and speech disabilities; telecommunications relay services and speech-to-speech services— American sign language-to-Spanish video relay service; providers’ compensation eligibility, 9333 E7-3526 Satellite communications— Non-U.S.-licensed satellites; removal from exclusion list; comment request, 9333-9335 E7-3521 Rulemaking proceedings; petitions filed, granted, denied, etc., 9335 E7-3518 Federal Election Federal Election Commission NOTICES Meetings; Sunshine Act, 9335 07-981 Federal Energy Federal Energy Regulatory Commission PROPOSED RULES Electric utilities (Federal Power Act):

Wave, current, and instream new technology hydropower projects; preliminary permits; interim policy statement, 9281-9284 E7-3549 NOTICES Hydroelectric applications, 9324-9325 E7-3595 Off-the-record communications, 9325-9326 E7-3596 *Applications, hearings, determinations, etc.:* Alliance Pipeline L.P., 9319 E7-3601 Canyon Creek Compression Co., 9319 E7-3606 CenterPoint Energy Gas Transmission Co., 9319-9320 E7-3593 Columbia Gulf Transmission Co., E7-3598 9320-9321 E7-3600 Energy West Development, Inc., 9321 E7-3608 Gulf South Pipeline Co., LP, 9321-9322 E7-3605 Natural Gas Pipeline Co. of America, 9322 E7-3592 Paiute Pipeline Co., 9322 E7-3603 Pine Needle LNG Co., LLC, 9322-9323 E7-3597 Southern California Edison Co., 9323 E7-3594 Tennessee Gas Pipeline Co., 9323 E7-3607 Trailblazer Pipeline Co., 9323-9324 E7-3602 Transcontinental Gas Pipe Line Corp., 9324 E7-3604 Viking Gas Transmission Co., 9324 E7-3599 Federal Motor Federal Motor Carrier Safety Administration NOTICES Motor carrier safety standards:

Driver qualifications; diabetes exemptions, 9399-9405 E7-3515 Driver qualifications; vision requirement exemptions, 9397-9399 E7-3514 Federal Reserve Federal Reserve System NOTICES Banks and bank holding companies: Change in bank control, E7-3569 9335 E7-3572 Formations, acquisitions, and mergers, E7-3568 9336 E7-3571 Permissible nonbanking activities, 9336-9337 E7-3570 Federal Open Market Committee: Domestic policy directives, E7-3540 9337 E7-3543 Federal Transit Federal Transit Administration NOTICES Buy America waivers:

Bielak, Simcha, 9406 E7-3591 Fish Fish and Wildlife Service NOTICES Endangered and threatened species: Incidental take permits— Sarasota County, FL; Florida scrub-jay, 9350-9351 E7-3573 Food Food and Drug Administration RULES Animal drugs, feeds, and related products: Maropitant citrate tablets, etc., 9242-9243 E7-3402 Monensin, 9244-9245 E7-3621 Trenbolone and estradiol; implantation or injectable, 9243-9244 E7-3620 Zilpaterol, 9245 E7-3615 NOTICES Meetings: Essentials of FDA Medical Device Regulations:

A Primer for Manufacturers and Suppliers; public seminar, 9342-9343 E7-3619 MISSING FOR: Foreign-Trade Zones Board Foreign-Trade Zones Board NOTICES *Applications, hearings, determinations, etc.:* Texas Motorola, Inc.; mobile phone kitting, 9304-9305 E7-3512 E7-3513 Forest Forest Service NOTICES Environmental statements; notice of intent: Medicine Bow-Routt National Forests and Thunder Basin National Grassland, WY, 9302-9303 07-919 Meetings: Intergovernmental Advisory Committee, 9303 E7-3564 GSA General Services Administration NOTICES Privacy Act; systems of records, 9337-9339 E7-3579 Health Health and Human Services Department See Centers for Disease Control and Prevention See Food and Drug Administration See National Institutes of Health RULES Grants and agreements:

Nonprocurement debarment and suspension; OMB guidance; implementation, 9233-9235 07-946 NOTICES Meetings: American Health Information Community, 9339 07-914 Reports and guidance documents; availability, etc.: Health information technology; interoperability standards, 9339-9340 07-915 Special Exposure Cohort; employee class designations: Allied Chemical Corp. Plant, IL, 9340-9341 07-910 Ames Laboratory, IA, 9341 07-913 Hanford Plant, WA, 9340 07-912 Harshaw Harvard-Denison Plant;

OH, 9341 07-909 W. R. Grace, TN, 9341 07-911 Homeland Homeland Security Department See Customs and Border Protection Bureau Housing Housing and Urban Development Department NOTICES Agency information collection activities; proposals, submissions, and approvals, 9347-9348 E7-3609 E7-3610 Public and Indian housing: Public Housing Operating Fund Program— Asset management transition assistance; regulatory waivers, 9348-9350 E7-3625 Interior Interior Department See Fish and Wildlife Service See Land Management Bureau IRS Internal Revenue Service RULES Income taxes:

Corporate reorganizations; additional distributions guidance, 9262-9263 E7-3534 Modified accelerated cost recovery system property; changes in use; depreciation, 9245-9262 07-922 PROPOSED RULES Income taxes: Corporate reorganizations; additional distributions guidance; cross-reference, 9284-9285 E7-3533 NOTICES Agency information collection activities; proposals, submissions, and approvals, 9406-9410 E7-3527 E7-3528 E7-3531 E7-3532 International International Trade Administration NOTICES Antidumping:

Canned pineapple fruit from — Thailand, 9305-9306 E7-3511 Weighted average dumping margin calculation during duty investigation, 9306-9307 E7-3510 *Applications, hearings, determinations, etc.:* Five-year (sunset) reviews— Initiation of reviews, 9307-9308 E7-3686 International International Trade Commission NOTICES Import investigations: Automotive replacement glass windshields from— China, 9351-9353 E7-3536 Dominican Republic-Central America-United States Free Trade Agreement— Costa Rican and Dominican Republic apparel goods; agency advice with respect to rules modification, 9353-9354 E7-3539 Dynamic random access memory devices and products containing same, 9354-9355 E7-3585 Engines, components thereof, and products containing same, 9355 E7-3587 High-brightness light emitting diodes and products containing same, 9355-9356 E7-3541 Ink cartridges and components, 9357 E7-3537 Welded large diameter line pipe from— Japan and Mexico, 9357-9358 E7-3542 Zero-mercury-added alkaline batteries, parts, and products containing same, 9358-9359 E7-3583 Justice Justice Department NOTICES Pollution control; consent judgments:

Ain, Martin, 9359 07-908 FMC Corp., 9359-9360 07-907 Labor Labor Department See Employment and Training Administration NOTICES Agency information collection activities; proposals, submissions, and approvals, E7-3545 9360-9362 E7-3546 E7-3547 Land Land Management Bureau NOTICES Meetings: Resource Advisory Councils— Coeur d’ Alene District, 9351 E7-3562 National Foundation National Foundation on the Arts and the Humanities RULES Grants, other financial assistance, and nonprocurement agreements:

Nonprocurement debarment and suspension; OMB guidance, 9235-9237 E7-3548 NIH National Institutes of Health NOTICES Meetings: National Cancer Institute, 9343 07-923 National Institute of Allergy and Infectious Diseases, 07-926 9344 07-927 National Institute of Child Health and Human Development, 9345-9346 07-930 07-931 07-932 National Institute of Dental & Craniofacial Research, 9344-9345 07-928 National Institute of Environmental Health Sciences, 9345 07-929 National Institute on Deafness and Other Communication Disorders, 9343-9344 07-924 07-925 NOAA National Oceanic and Atmospheric Administration RULES Fishery conservation and management:

Alaska; fisheries of Exclusive Economic Zone— Pacific cod, 9272 07-933 PROPOSED RULES Endangered and threatened species: Sea turtle conservation— Fishing Gear Inspection Program, 9297-9301 E7-3630 NOTICES Meetings: Caribbean Fishery Management Council, 9308-9309 E7-3553 International Whaling Commission, 9309 E7-3611 Mid-Atlantic Fishery Management Council, 9309 E7-3552 NRCS Natural Resources Conservation Service NOTICES Field offices technical guide; changes: Maryland, 9304 E7-3358 Presidential Presidential Documents PROCLAMATIONS *Special observances:* Irish-American Heritage Month (Proc. 8107), 9429-9432 07-984 Railroad Railroad Retirement Board NOTICES Agency information collection activities; proposals, submissions, and approvals, 9363 E7-3576 SEC Securities and Exchange Commission PROPOSED RULES Securities:

Self-regulatory organizations; proposed rule changes, 9412-9428 07-917 NOTICES Investment Company Act of 1940: Eagle Growth Shares Investing Programs et al., 9363-9364 E7-3555 Self-regulatory organizations; proposed rule changes: International Securities Exchange, LLC, 9364-9369 E7-3558 NASDAQ Stock Market LLC, 9369-9370 E7-3554 New York Stock Exchange LLC, 9370-9371 E7-3556 Philadelphia Stock Exchange, Inc., 9371-9373 E7-3563 Social Social Security Administration RULES Social security benefits and supplemental security income:

Federal old age, survivors, and disability insurance, and aged, blind, and disabled— Optometrists acceptability as medical sources for establishing medically determinable impairments, 9239-9242 E7-3577 NOTICES Privacy Act; computer matching programs, 9373-9374 E7-3578 E7-3580 State State Department NOTICES Grants and cooperative agreements; availability, etc.: Venezuela, Ecuador, Peru, Bolivia and Nicaragua; youth leadership program, 9374-9380 E7-3635 Youth Leadership Program for Indonesia, 9380-9385 E7-3623 Transportation Transportation Department See Federal Aviation Administration See Federal Motor Carrier Safety Administration See Federal Transit Administration NOTICES Agency information collection activities; proposals, submissions, and approvals, 9385 E7-3665 Grants and cooperative agreements; availability, etc.:

Small Community Air Service Development Program, 9385-9394 E7-3581 Treasury Treasury Department See Internal Revenue Service Separate Parts In This Issue Part II Securities and Exchange Commission, 9412-9428 07-917 Part III Executive Office of the President, Presidential Documents, 9429-9432 07-984 Reader Aids Consult the Reader Aids section at the end of this issue for phone numbers, online resources, finding aids, reminders, and notice of recently enacted public laws. To subscribe to the Federal Register Table of Contents LISTSERV electronic mailing list, go to http://listserv.access.gpo.gov and select Online mailing list archives, FEDREGTOC-L, Join or leave the list (or change settings); then follow the instructions. 72 40 Thursday, March 1, 2007 Rules and Regulations DEPARTMENT OF HEALTH AND HUMAN SERVICES Office of the Secretary 2 CFR Part 376 45 CFR Parts 74 and 76 Department of Health and Human Services' Implementation of OMB Guidance on Nonprocurement Debarment and Suspension AGENCY:

Department of Health and Human Services. ACTION: Interim final rule with request for comments. SUMMARY: The Department of Health and Human Services (HHS or the Department) is issuing a new part 376 on nonprocurement debarment and suspension in Title 2 the Code of Federal Regulations (CFR). This new part is HHS's implementation of OMB's guidance provided at 2 CFR part 180. HHS is removing 45 CFR part 76, the part containing its implementation of the government-wide common rule on nonprocurement debarment and suspension.

The new part in 2 CFR serves the same purpose as the common rule, but in a simpler way. This interim final rule is part of OMB's initiative to streamline and consolidate all federal regulations on nonprocurement debarment and suspension. It is an administrative simplification that would make no substantive change in HHS policy or procedures for nonprocurement debarment and suspension. DATES: *Effective Date:* March 1, 2007. *Comment Date:* April 2, 2007. ADDRESSES: You may submit comments by any of the following methods: • Federal eRulemaking Portal: *http://www.regulations.gov.* Follow the instructions for submitting comments. *E-mail:* to *Nancy.Weisman@hhs.gov.* Please state “2 CFR part 376” on the subject line or mail:

Nancy Weisman, HHS Office of Grants Policy, Oversight and Evaluation, Room 336-E, 200 Independence Ave., SW., Washington, DC 20201. FOR FURTHER INFORMATION CONTACT: Nancy Weisman at

(202)260-4573, or by e-mail at [ *Nancy.Weisman@hhs.gov* ]. SUPPLEMENTARY INFORMATION: I. Background On August 31, 2005, OMB issued interim final Guidance for Government-wide Debarment and Suspension (Nonprocurement), codified in part 180 of Title 2 of the CFR (70 FR 51862). In addition to restating and updating its guidance on nonprocurement debarment and suspension, the interim final guidance requires all Federal agencies to adopt a new approach to federal agency implementation of the guidance. OMB requires each agency to issue a brief rule that:

(1)Adopts the guidance, giving it regulatory effect for that agency's activities; and

(2)states any agency-specific additions, clarifications, and exceptions to the government-wide policies and procedures contained in that guidance. That guidance also requires agencies to implement the OMB guidance by February 28, 2007. Pursuant to the requirements in OMB's guidance, the Department will:

(1)Establish Chapter 3 in Subtitle B of Title 2 CFR for HHS regulations on grants and agreements;

(2)remove 45 CFR part 76 containing the full text of the Department's debarment and suspension common rule;

(3)replace 45 CFR part 76 with a brief new part 376 that adopts OMB's guidance at 2 CFR part 180 and adds provisions specific to HHS;

(4)co-locate the Department's new part 376 with OMB's guidance in 2 CFR along with other agencies' regulations in that title; and

(5)revise the reference in 45 CFR 74.13 to reflect the new citation to the Department's nonprocurement debarment and suspension regulations now located at 2 CFR part 376. II. Invitation To Comment This new part in 2 CFR adopts the OMB guidelines with the same additions and clarifications we made to the common rule on nonprocurement debarment and suspension in the **Federal Register** publication of November 26, 2003 (68 FR 66630). In soliciting comments on this action, we are not seeking to revisit substantive issues that were already resolved during the preparation of that final common rule. Because we intend the new part to make no changes in current HHS policies and procedures, we specifically invite comments on any unintended changes in substantive content that the new part in Title 2 CFR would make relative to the November 2003 common rule at 45 CFR part 76. III. Procedural Review Requirements A. Executive Order 12866, Regulatory Planning and Review HHS has determined that 2 CFR part 376 is not a significant regulatory action. B. Regulatory Flexibility Act HHS certifies this rulemaking will not have a significant economic effect on a substantial number of small entities under the Regulatory Flexibility Act [5 U.S.C. 605(b)]. Therefore, no regulatory flexibility statement has been prepared. Since this rule relocates existing HHS nonprocurement and debarment policies or procedures and does not promulgate any new policies and procedures that would impact the public, it has been determined that this rule will not have a significant economic effect on a substantial number of small entities, and, thus, a regulatory flexibility analysis was not performed. C. Unfunded Mandates Reform Act HHS has determined that 2 CFR 376 does not contain a Federal mandate under 2 U.S.C. 1501(7) 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. D. Paperwork Reduction Act The Paperwork Reduction Act, 44 U.S.C. 35, does not apply because the issuance of 2 CFR part 376 does not impose any new reporting or recordkeeping requirements that require approval by OMB. E. Executive Order 13132, Federalism This regulation does not have federalism implications, as set forth in Executive Order 13132. This regulation does not have substantial direct effects on the states, the relationship between the Federal Government and the states, or the distribution of power and responsibilities among the various levels of government. List of Subjects 2 CFR Part 376 Administrative practice and procedure, Debarment and suspension, Grant programs, Reporting and recordkeeping requirements. 45 CFR Part 74 Accounting, Colleges and universities, Grant programs, Hospitals, Indians, Intergovernmental relations, Nonprofit organizations, Reporting and recordkeeping requirements. 45 CFR Part 76 Administrative practice and procedure, Debarment and suspension, Grant programs, Reporting and recordkeeping requirements. Dated: February 26, 2007. Michael O. Leavitt, Secretary. Accordingly, under the authority of 5 U.S.C. 301; 31 U.S.C. 6101 (note); E.O. 12689 (3 CFR, 1989 Comp., p. 235); E.O.12549 (3 CFR, 1986 Comp., p. 189); E.O. 11738 (3 CFR, 1973 Comp., p. 799), the Department of Health and Human Services publishes the following amendments to the Code of Federal Regulations, Title 2, Subtitle B, and Title 45, Chapter I, as set forth below. Title 2—Grants and Agreements Add Chapter III in Subtitle B of Title 2 CFR where HHS grants and agreement rules will appear. With this regulatory action, Chapter III will consist of Part 376, to read as follows: CHAPTER III—DEPARTMENT OF HEALTH AND HUMAN SERVICES PART 376—NONPROCUREMENT DEBARMENT AND SUSPENSION Sec. 376.10 What does this part do? 376.20 Does this part apply to me? 376.30 What policies and procedures must I follow? Subpart A—General 376.137 Who in the Department of Health and Human Services

(HHS)may grant an exception to let an excluded person participate in a covered transaction? 376.147 Does an exclusion from participation in Federal health care programs under Title XI of the Social Security Act affect a person's eligibility to participate in nonprocurement and procurement transactions? Subpart B—Covered Transactions 376.220 What contracts and subcontracts, in addition to those listed in 2 CFR 180.220, are covered transactions? Subpart C—Responsibilities of Participants Regarding Transactions 376.332 What methods must I use to pass requirements down to participants at lower tiers with whom I intend to do business? 376.370 What are the obligations of Medicare carriers and intermediaries? Subpart D—Responsibilities of Federal Agency Officials Regarding Transactions 376.437 What method do I use to communicate to a participant the requirements described in the OMB guidance at 2 CFR 180.435? Subpart E—Excluded Parties List System [Reserved] Subpart F—General Principles Relating to Suspension and Debarment Actions [Reserved] Subpart G—Suspension [Reserved] Subpart H—Debarment [Reserved] Subpart I—Definitions 376.935 Disqualified (HHS supplement to government-wide definition at 2 CFR 180.935). 376.995 Principal (HHS supplement to government-wide definition at 2 CFR 180.995). Subpart J—[Reserved] Authority: 5 U.S.C. 301; 31 U.S.C. 6101 (note); E.O. 12689 (3 CFR, 1989 Comp., p. 235); E.O. 12549 (3 CFR, 1986 Comp., p. 189); E.O. 11738 (3 CFR, 1973 Comp., p. 799). § 376.10 What does this part do? This part adopts the Office of Management and Budget

(OMB)guidance in subparts A through I of 2 CFR part 180, as supplemented by this part, as the Department of Health and Human Services (HHS or Department) policies and procedures for nonprocurement debarment and suspension. HHS thereby gives regulatory effect to the OMB guidance as supplemented by this part. This part satisfies the requirements in 2 CFR 180.20, section 3 of Executive Order 12549, “Debarment and Suspension” (3 CFR 1986 Comp., p. 189), Executive Order 12689, “Debarment and Suspension” (3 CFR 1989 Comp., p. 235) and 31 U.S.C. 6101 note (Section 2455, Pub. L. 103-355, 108 Stat. 3327). § 376.20 Does this part apply to me? This part and, through this part, pertinent portions of the OMB guidance in subparts A through I of 2 CFR part 180 (see table at 2 CFR 180.100(b)), apply to you if you are a—

(a)Participant or principal in a “covered transaction” under subpart B of 2 CFR part 180, as supplemented by this part, and the definition of nonprocurement transaction” at 2 CFR 180.970.

(b)Respondent in HHS suspension or debarment action;

(c)HHS debarment or suspension official;

(d)HHS grants officer, agreements officer, or other HHS official authorized to enter into any type of nonprocurement transaction that is a covered transaction. § 376.30 What policies and procedures must I follow? The policies and procedures that you must follow are the policies and procedures specified in each applicable section of the OMB guidance in subparts A through I of 2 CFR part 180, including the corresponding section that HHS published in 2 CFR part 376 identified by the same section number. The contracts under a nonprocurement transaction, that are covered transactions, for example, are specified by section 220 of the OMB guidance ( *i.e.* , 2 CFR 180.220) as supplemented by section 220 in this part ( *i.e.* , 2 CFR 376.220). For any section of OMB guidance in subparts A through I of 2 CFR part 180 that has no corresponding section in this part, HHS policies and procedures are those in the OMB guidance at 2 CFR part 180. Subpart A—General § 376.137 Who in the Department of Health and Human Services may grant an exception to let an excluded person participate in a covered transaction? The HHS Debarring/Suspension Official has the authority to grant an exception to let an excluded person participate in a covered transaction as provided at 2 CFR 180.135. § 376.147 Does an exclusion from participation in Federal health care programs under Title XI of the Social Security Act affect a person's eligibility to participate in nonprocurement and procurement transactions? Any individual or entity excluded from participation in Medicare, Medicaid, and other Federal health care programs under Title XI of the Social Security Act, 42 U.S.C. 1320a-7, 1320a-7a, 1320c-5, or 1395ccc, and implementing regulation at 42 CFR part 1001, will be subject to the prohibitions against participating in covered transactions, as set forth in this part and part 180, and is prohibited from participating in all Federal government procurement programs and nonprocurement programs. For example, if an individual or entity is excluded by the HHS Office of the Inspector General from participation in Medicare, Medicaid, and/or other Federal health care programs, in accordance with 42 U.S.C. 1320a-7, then that individual or entity is prohibited from participating in all Federal government procurement and nonprocurement programs (42 CFR part 1001). Subpart B—Covered Transactions § 376.220 What contracts and subcontracts, in addition to those listed in 2 CFR 180.220, are covered transactions? In addition to the contracts covered under 2 CFR 180.220(b), this part also applies to all lower tiers of subcontracts under covered nonprocurement transactions, as permitted under the OMB guidance at 2 CFR 180.220(c). (See optional lower tier coverage in the diagram in the Appendix to 2 CFR part 180.) Subpart C—Responsibilities of Participants Regarding Transactions § 376.332 What methods must I use to pass requirements down to participants at lower tiers with whom I intend to do business? To communicate the requirements to lower-tier participants, you must include a term or condition in the lower-tier transaction requiring the lower-tier participant's compliance with 2 CFR part 180, as supplemented by this subpart. § 376.370 What are the obligations of Medicare carriers and intermediaries? Because Medicare carriers, intermediaries and other Medicare contractors undertake responsibilities on behalf of the Medicare program (Title XVIII of the Social Security Act), these entities assume the same obligations and responsibilities as the HHS Medicare officials responsible for the Medicare Program with respect to actions under 2 CFR part 376. This would include the requirement for these entities to check the Excluded Parties List System

(EPLS)and take necessary steps to effect this part. Subpart D—Responsibilities of Federal Agency Officials Regarding Transactions § 376.437 What method do I use to communicate to a participant the requirements described in the OMB guidance at 2 CFR 180.435? To communicate to a participant the requirements described in 2 CFR 180.435, you must include a term or condition in the transaction that requires the participant's compliance with subpart C of 2 CFR part 180, as supplemented by Subpart C of this part, and require the participant to include a similar term or condition in lower-tier covered transactions. Subpart E—Excluded Parties List System [Reserved] Subpart F—General Principles Relating to Suspension and Debarment Actions [Reserved] Subpart G—Suspension [Reserved] Subpart H—Debarment [Reserved] Subpart I—Definitions § 376.935 Disqualified. (HHS supplement to government-wide definition at 2 CFR 180.935). *Disqualified* means persons prohibited from participating in specified federal procurement and nonprocurement transactions pursuant to the statutes listed in 2 CFR 180.935, and pursuant to Title XI of the Social Security Act (42 U.S.C. 1320a-7, 1320a-7a, 1320c-5, and 1395ccc) as enforced by the HHS Office of the Inspector General. § 376.995 Principal (HHS supplement to government-wide definition at 2 CFR 180.995). *Principal* means individuals, in addition to those listed at 2 CFR 180.995, who participate in HHS covered transactions including:

(a)Providers of federally required audit services; and

(b)Researchers. Subpart J—[Reserved] Title 45—Public Welfare CHAPTER I—DEPARTMENT OF HEALTH AND HUMAN SERVICES PART 74—[AMENDED] 1. The authority citation for part 74 continues to read as follows: Authority: 5 U.S.C. 301. § 74.13 [Amended] 2. Section 74.13 is amended by revising the citation “45 CFR part 76” to read “2 CFR part 376.” PART 76—[REMOVED] 3. Remove part 76 from Title 45 CFR. [FR Doc. 07-946 Filed 2-27-07; 12:05 pm]

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