LIHEAP Statute/Legislations for Block Grant Subparts A-F

Publication Date: December 21, 2011

Current as of: June 24, 2019

HHS Block Grant Regulations

Title 45 (Public Welfare and Human Services, General Administration), Part 96 (Block Grants), revised as of October 1, 1996

The text of the U.S. Department of Health and Human Services (HHS) Block Grant Regulations (Title 45, Part 96 of the Code of Federal Regulations) is taken from the U.S. Government Printing Office via GPO Access//CITE: 45CFR96.

Sections Listing by Subparts

[Page 480-535]

Subpart A--Introduction
Sec.
96.1 Scope.
96.2 Definitions.
96.3 Information collection approval numbers.
[[Page 481]]

Subpart B--General Procedures

96.10 Prerequisites to obtain block grant funds.
96.11 Basis of award to the States.
96.12 Grant payment.
96.13 Reallotments.
96.14 Time period for obligation and expenditure of grant funds.
96.15 Waivers.
96.16 Applicability of Title XVII of the Reconciliation Act (31 U.S.C. 7301-7305).
96.17 Annual reporting requirements.

Subpart C--Financial Management

96.30 Fiscal and administrative requirements.
96.31 Audits.
96.32 Financial settlement.
96.33 Referral of cases to the Inspector General.

Subpart D--Direct Funding of Indian Tribes and Tribal Organizations

96.40 Scope.
96.41 General determination.
96.42 General procedures and requirements.
96.43 Procedures during FY 1982.
96.44 Community services.
96.45 Preventive health and health services.
96.46 Substance abuse prevention and treatment services.
96.47 Primary care.
96.48 Low-income home energy assistance.

Subpart E--Enforcement

96.50 Complaints.
96.51 Hearings.
96.52 Appeals.

Subpart F--Hearing Procedure

96.60 Scope.
96.61 Initiation of hearing.
96.62 Presiding officer.
96.63 Communications to presiding officer.
96.64 Intervention.
96.65 Discovery.
96.66 Hearing procedure.
96.67 Right to counsel.
96.68 Administrative record of a hearing.

Subpart G--Social Services Block Grants

96.70 Scope.
96.71 Definitions.
96.72 Transferability of funds.
96.73 Sterilization.
96.74 Annual reporting requirements.

Subpart H--Low-Income Home Energy Assistance Program

96.80 Scope.
96.81 Reallotment report.
96.82 Required report.
96.83 Increase in maximum amount that may be used for weatherization
and other energy--related home repair.
96.84 Miscellaneous.
96.85 Income eligibility.
96.86 Exemption from requirement for additional outreach and intake services.
96.87 Leveraging incentive program.
96.88 Administrative costs.
96.89 Exemptions from standards for providing energy crisis intervention assistance.

Subpart I--Community Services Block Grants

96.90 Scope.
96.91 Audit requirement.
96.92 Termination of funding.

Subpart J--Primary Care Block Grants

96.100 Scope.
96.101 Review of State decision to discontinue funding of a community health center.
96.102 Carryover of unobligated funds.

Subpart K--Transition Provisions

96.110 Scope.
96.111 Continuation of pre-existing regulations.
96.112 Community services block grant.

Subpart L--Substance Abuse Prevention and Treatment Block Grant

96.120 Scope.
96.121 Definitions.
96.122 Application content and procedures.
96.123 Assurances.
96.124 Certain allocations.
96.125 Primary prevention.
96.126 Capacity of treatment for intravenous substance abusers.
96.127 Requirements regarding tuberculosis.
96.128 Requirements regarding human immunodeficiency virus.
96.129 Revolving funds for establishment of homes in which recovering substance abusers may reside.
96.130 State law regarding sale of tobacco products to individuals under age of 18.
96.131 Treatment services for pregnant women.
96.132 Additional agreements.
96.133 Submission to Secretary of Statewide assessment of needs.
96.134 Maintenance of effort regarding State expenditures.
96.135 Restrictions on expenditure of grant.
96.136 Independent peer review.
96.137 Payment schedule.

[[Page 482]]

Appendix A to Part 96--Uniform Definitions of Services

Appendix B to Part 96--SSBG Reporting Form and Instructions

Authority: 42 U.S.C. 300w et seq.; 42 U.S.C. 300x et seq.; 42 U.S.C.

300y et seq.; 42 U.S.C. 701 et seq.; 42 U.S.C. 8621 et seq.; 42 U.S.C.

9901 et seq.; 42 U.S.C. 1397 et seq.; 31 U.S.C. 1243 note.

Source: 47 FR 29486, July 6, 1982, unless otherwise noted.

Subpart A--Introduction

Sec. 96.1 Scope.
This part applies to the following block grant programs:
(a) Community services (Pub. L. 97-35, sections 671-682) (42 U.S.C. 9901-9912).
(b) Preventive health and health services (Pub. L. 97-35, section 901) (42 U.S.C. 300w-300w-8).
(c) Alcohol and drug abuse and mental health services (Pub. L. 97-35, section 901) (42 U.S.C. 300x-300x-9).
(d) Primary care (Pub. L. 97-35, section 901)(42 U.S.C. 300y-300y-10).
(e) Maternal and child health services (Pub. L. 97-35, sections 2191-94) (42 U.S.C. 1305).
(f) Social Services (Pub. L. 97-35, sections 2351-55, 42 U.S.C. 397-1397(e)) as amended.
(g) Low-income home energy assistance (Pub. L. 97-35, sections 2601-11) (42 U.S.C. 8621-8629).
[47 FR 29486, July 6, 1982, as amended at 58 FR 60128, Nov. 15, 1993]

Sec. 96.2 Definitions.
(a) Secretary means the Secretary of Health and Human Services or his designee.
(b) Department means the Department of Health and Human Services.
(c) Reconciliation Act means the Omnibus Budget Reconciliation Act of 1981 (Pub. L. 97-35).
(d) State includes the fifty states, the District of Columbia, and, as appropriate with respect to each block grant, the Commonwealth of Puerto Rico, the Virgin Islands, Guam, American Samoa, the Commonwealth of the Northern Mariana Islands, and the Trust Territory of the Pacific Islands.
[47 FR 29486, July 6, 1982, as amended at 52 FR 37965, Oct. 13, 1987]

Sec. 96.3 Information collection approval numbers.

Information collection requirements pertaining to the block grant programs have been approved by the Office of Management and Budget under the provisions of the Paperwork Reduction Act, Pub. L. 96-511 (44 U.S.C. Chapter 35) and have been assigned OMB numbers: 0930-0080 Alcohol and Drug Abuse and Mental Health Services Block Grant

Reporting Requirements

0920-0106 Preventive Health and Health Services Block Grant Reporting Requirements

0915-0023 Primary Care Block Grant Reporting Requirements

0915-0024 Maternal and Child Health Services Block Grant Reporting Requirements

0980-0125 Social Services Block Grant Reporting Requirements

0980-0126 Community Services Block Grant Reporting Requirements

0960-0261 Low-Income Home Energy Assistance Block Grant Reporting Requirements.

[47 FR 29486, July 6, 1982; 47 FR 43062, Sept. 30, 1982]

Subpart B--General Procedures

Sec. 96.10 Prerequisites to obtain block grant funds.

(a) No particular form is required for a State's application or the related submission required by statute. The provisions in section

1742(a) of the Reconciliation Act (31 U.S.C. 1243 note) relating to the contents of a report on proposed uses of funds must be satisfied; the

specified information should be included in the plan required for the community services block grant (section 675(d) of the Reconciliation

Act) (42 U.S.C. 9904(d)) and in the description of intended uses of funds required for the preventive health and health services, and

alcohol and drug abuse and mental health services block grants (sections 1905(d) and 1915(d) of the Public Health Service Act (as amended by the Reconciliation Act) respectively (42 U.S.C. 300w-4(d) and 42 U.S.C. 300x-4(d)).

[[Page 483]]

(b) The certifications required by the community services, primary care, preventive health and health services, alcohol and drug abuse and

mental health services, and low-income home energy assistance block grant statutes to be made by the State's chief executive officer must be

made by that individual personally, or by an individual authorized to make such certifications on behalf of the chief executive officer.

Sec. 96.11 Basis of award to the States.

The Secretary will award the block grant funds allotted to the State in accordance with the apportionment of funds from the Office of

Management and Budget. Such awards will reflect amounts reserved for Indian Tribes and Tribal Organizations and, in FY 1982, any amounts

awarded by the Department under transition authorities. The grant award constitutes the authority to carry out the program and to draw and

expend funds.

[47 FR 29486, July 6, 1982; 47 FR 43062, Sept. 30, 1982]

Sec. 96.12 Grant payment.

The Secretary will make payments at such times and in such amounts to each State from its awards in advance or by way of reimbursement in

accordance with section 203 of the Intergovernmental Cooperation Act (42 U.S.C. 4213) and Treasury Circular No. 1075 (31 CFR Part 205). When matching funds are involved, the Secretary shall take into account the ratio that such payment bears to such State's total expenditures under its awards.

Sec. 96.13 Reallotments.

The Secretary will re-allot to eligible States those funds available as of September 1 of each fiscal year under the reallotment provisions

pertaining to the alcohol and drug abuse and mental health services, maternal and child health services, and preventive health and health

services block grants. The reallotment procedure for the low-income home energy assistance block grant is specified in section 2607 of the

Reconciliation Act (42 U.S.C. 8626) and Sec. 96.81 of this part.

Sec. 96.14 Time period for obligation and expenditure of grant funds.

(a) Obligations. Amounts unobligated by the State at the end of the fiscal year in which they were first allotted shall remain available for

obligation during the succeeding fiscal year for all block grants except:

(1) Primary care. Amounts are available only if the Secretary determines that the State acted in accordance with section 1926(a)(1) of

the Public Health Service Act (42 U.S.C. 300y-5(a)(1)) and there is good cause for funds remaining unobligated.

(2) Low-income home energy assistance. Regular LIHEAP block grant funds authorized under section 2602(b) of Public Law 97-35 (42 U.S.C.

8621(b)) are available only in accordance with section 2607(b)(2)(B) of Public Law 97-35 (42 U.S.C. 8626(b)(2)(B)), as follows. From allotments

for fiscal year 1982 through fiscal year 1984, a maximum of 25 percent may be held available for the next fiscal year. From allotments for

fiscal year 1985 through fiscal year 1990, a maximum of 15 percent of the amount payable to a grantee and not transferred to another block

grant according to section 2604(f) of Public Law 97-35 (42 U.S.C. 8623(f)) may be held available for the next fiscal year. From allotments

for fiscal year 1991 through fiscal year 1993, a maximum of 10 percent of the amount payable to a grantee and not transferred to another block

grant according to section 2604(f) of Public Law 97-35 (42 U.S.C. 8623(f)) may be held available for the next fiscal year. Beginning with

allotments for fiscal year 1994, a maximum of 10 percent of the amount payable to a grantee may be held available for the next fiscal year. No

funds may be obligated after the end of the fiscal year following the fiscal year for which they were allotted.

(b) Expenditure. No limitations exist on the time for expenditure of block grant funds, except those imposed by statute with respect to the

community services, maternal and child health services, and social services block grants.

[47 FR 29486, July 6, 1982; 47 FR 43062, Sept. 30, 1982, as amended at

52 FR 37965, Oct. 13, 1987; 60 FR 21357, May 1, 1995]

[[Page 484]]

Sec. 96.15 Waivers.

Applications for waivers that are permitted by statute for the block grants should be submitted to the Assistant Secretary of Health in the

case of the preventive health and health services, alcohol and drug abuse and mental health services, and maternal and child health services

block grants; to the Director, Office of Community Services in the case of the community services block grant; and to the Assistant Secretary

for Human Development Services in the case of the social services block grant. Beginning with fiscal year 1986, the Secretary's authority to

waive the provisions of 42 U.S.C. 8624(b) under the low-income home energy assistance program is repealed.

[52 FR 37965, Oct. 13, 1987]

Sec. 96.16 Applicability of title XVII of the Reconciliation Act (31 U.S.C. 7301-7305).

This section interprets the applicability of the general provisions governing block grants set forth in title XVII of the Reconciliation Act (31 U.S.C. 7301-7305):

(a) Except as otherwise provided in this section or unless inconsistent with provisions in the individual block grant statutes, 31 U.S.C. 7301-7305 apply to the community services, preventive health and health services, and alcohol and drug abuse and mental health services block grants.

(b) The requirement in 31 U.S.C. 7303(b) relating to public hearings does not apply to any of the block grants governed by this part.

Instead, the provisions in the individual block grant statutes apply.

(d) The social services and low-income home energy assistance programs are subject only to 31 U.S.C. 7304.

(e) The audit provisions of 31 U.S.C. 7305 have, in most cases, been overridden by the Single Audit Act. Pub. L. 98-502, 31 U.S.C. 75, et

seq., and do not apply to the block grants. Pursuant to Sec. 96.31(b)(2), certain entities may, however, elect to conduct audits

under the block grant audit provisions. For entities making this election, the provisions of 31 U.S.C. 7305 apply to the community

services block grant.

(f) The applicability of 31 U.S.C. 7303(a) relating to the contents of a report on proposed uses of funds is specified in Sec. 96.10.

[52 FR 37966, Oct. 13, 1987]

Sec. 96.17 Annual reporting requirements.

(a) Except for the low-income home energy assistance program activity reports, a state must make public and submit to the Department

each annual report required by statute:

(1) Within six months of the end of the period covered by the report; or

(2) At the time the state submits its application for funding for the federal or state fiscal year, as appropriate, which begins

subsequent to the expiration of that six-month period.

(b) These reports are required annually for preventive health and health services (42 U.S.C. 300w-5(a)(1)), community mental health

services (42 U.S.C. 300x et. seq.), the prevention and treatment of substance abuse block grant (42 U.S.C. 300x-21 et. seq.), maternal and

child health services (42 U.S.C. 706(a)(1)), and the social services block grant (42 U.S.C. 1397e(a)). See Sec. 96.82 for requirements

governing the submission of activity reports for the low-income home energy assistance program.

[58 FR 60128, Nov. 15, 1993]

Subpart C--Financial Management

Sec. 96.30 Fiscal and administrative requirements.

Except where otherwise required by Federal law or regulation, a State shall obligate and expend block grant funds in accordance with the

laws and procedures applicable to the obligation and expenditure of its own funds. Fiscal control and accounting procedures must be sufficient

to (a) permit preparation of reports required by the statute authorizing the block grant and (b) permit the tracing of funds to a level of

expenditure adequate to establish that [[Page 485]] such funds have not been used in violation of the restrictions and prohibitions of the statute authorizing the block grant.

[47 FR 29486, July 6, 1982, as amended at 52 FR 37966, Oct. 13, 1987; 53

FR 11656, Apr. 8, 1988]

Sec. 96.31 Audits.

(a) Fiscal periods beginning before January 1, 1985. All block grant funds received in any grantee fiscal year beginning before January 1,

1985, are subject to the audit requirements set forth in each of the respective block grant statutes. Reports on the audit results for all

fiscal years subject to this paragraph must be submitted to the Department within one year of the date of publication of this rule.

(b) Fiscal periods beginning on or after January 1, 1985. (1) Each State, local government, and Indian tribe or tribal organization that

receives $100,000 or more (during the grantee's fiscal year) in all types of Federal financial assistance provided through the block grants

and all other Federal programs must conduct an audit in accordance with the Single Audit Act, Pub. L. 98-502, 31 U.S.C. 75 et seq. The Office of Management and Budget has implemented the Single Audit Act through publication of OMB Circular A-128, which is set out in full at 45 CFR part 74, appendix J of the Department's Grant Administration Regulations. Grantees must comply with the requirements of 45 CFR part 74, appendix J.

(2) Each State, local government or Indian tribe or tribal organization that receives at least $25,000 and less than $100,000 in total Federal financial assistance from all sources must, at its option, audit block grant funds under either the Single Audit Act or the separate audit requirements set out in each respective block grant statute (or, in the case of the community services block grant, the requirements in 31 U.S.C. 7305). Any audit that is conducted under the block grant audit requirements must be conducted in accordance with standards that are consistent with the Comptroller General's standards for the audit of governmental organizations, programs, activities, and functions. Reports on the results of any such audit must be submitted to the Department by January 1, 1989, if the report is for an audit period that ended prior to January 1, 1988. Reports on the results of any such audit for an audit period that ends on January 1, 1988 or later must be submitted to the Department within one year of the end of the audit period.

(c) Submission of audit reports. Reports of audits conducted under either the Single Audit Act or the block grant statutes shall, if required to be submitted to the Department, be submitted to the Regional Inspector General for Audit responsible for the Federal region in which the block grant recipient is located.

[52 FR 37966, Oct. 13, 1987, as amended at 53 FR 6828, Mar. 3, 1988]

Sec. 96.32 Financial settlement.

The State must repay to the Department amounts found after audit resolution to have been expended improperly. In the event that repayment is not made voluntarily, the Department will undertake recovery.

[52 FR 37966, Oct. 13, 1987]

Sec. 96.33 Referral of cases to the Inspector General.

State or tribal officials who have information indicating the commission or potential commission of fraud or other offenses against the United States involving block grant funds should promptly provide the information to the appropriate Regional Office of Investigations of the Department's Office of the Inspector General.

[52 FR 37966, Oct. 13, 1987]

Subpart D--Direct Funding of Indian Tribes and Tribal Organizations | Top of Page

Sec. 96.40 Scope.

This subpart applies to the community services, alcohol and drug abuse and mental health services, preventive health and health services, primary care, and low-income home energy assistance block grants.

[[Page 486]]

Sec. 96.41 General determination.

(a) The Secretary has determined that Indian tribes and tribal organizations would be better served by means of grants provided directly by the Secretary to such tribes and organizations out of the State's allotment of block grant funds than if the State were awarded its entire allotment. Accordingly, where provided for by statute, the Secretary will, upon request of an eligible Indian tribe or tribal organization, reserve a portion of a State's allotment and, upon receipt of the complete application and related submission that meets statutory requirements, grant it directly to the tribe or organization.

(b) An Indian tribe or tribal organization may request direct funding under a block grant program included in this subpart regardless of whether the State in which it is located is receiving funds under the block grant program.

Sec. 96.42 General procedures and requirements.

(a) An Indian tribe or tribal organization applying for or receiving direct funding from the Secretary under a block grant program shall besubject to all statutory and regulatory requirements applicable to a State applying for or receiving block grant funds to the extent that such requirements are relevant to an Indian tribe or tribal organization except where otherwise provided by statute or in this part.

(b) A tribal organization representing more than one Indian tribe will be eligible to receive block grant funds on behalf of a particular tribe only if the tribe has by resolution authorized the organization's action.

(c) If an Indian tribe or tribal organization whose service population resides in more than one State applies for block grant funds that, by statute, are apportioned on the basis of population, the allotment awarded to the tribe or organization shall be taken from the allotments of the various States in which the service population resides in proportion to the number of eligible members or households to be served in each State. If block grant funds are required to be apportioned on the basis of grants during a base year, the allotment to the Indian tribe or tribal organization shall be taken from the allotment of the State whose base year grants included the relevant grants to the tribe or organization.

(d) The audit required under the block grant programs shall be conducted by an entity that is independent of the Indian tribe or tribal organization receiving grant funds from the Secretary.

(e) Beginning with fiscal year 1983, any request by an Indian tribe or tribal organization for direct funding by the Secretary must be submitted to the Secretary, together with the required application and related materials, by September 1 preceding the Federal fiscal year for which funds are sought. A separate application is required for each block grant. After the September 1 deadline, tribal applications will be accepted only with the concurrence of the State (or States) in which the tribe or tribal organization is located.

(f) A State receiving block grant funds is not required to use those funds to provide tangible benefits (e.g., cash or goods) to Indians who are within the service population of an Indian tribe or tribal organization that received direct funding from the Department under the same block grant program for the same fiscal year. A State, however, may not deny Indians access to intangible services funded by block grant programs (e.g., treatment at a community health center) even if the Indians are members of a tribe receiving direct funding for a similar service.

[47 FR 29486, July 6, 1982, as amended at 52 FR 37966, Oct. 13, 1987]

Sec. 96.43 Procedures during FY 1982.

(a) This section applies to the fiscal year beginning October 1, 1981.

(b) A request for direct funding must be received by the Secretary before the Secretary has awarded all of the allotment to the State involved. The application and related submission may be submitted later but must be submitted within 75 days after the beginning of the quarter

in which the State qualified for block grant funds, (or by August 20, 1982 in the case of an Indian tribe located in a State that has not qualified for block grant funds in FY 1982) except that the application and related submission for the low-income

[[Page 487]]

home energy assistance program must be submitted by December 15, 1981. A separate request and application are required for each block grant.

[47 FR 29486, July 6, 1982; 47 FR 43062, Sept. 30, 1982]

Sec. 96.44 Community services.

(a) This section applies to direct funding of Indian tribes and tribal organizations under the community services block grant.

(b) The terms Indian tribe and tribal organization as used in the Reconciliation Act have the same meaning given such terms in section 4(b) and 4(c) of the Indian Self-Determination and Education Assistance Act (25 U.S.C. 450b). The terms also include organized groups of Indians that the State in which they reside has determined are Indian tribes. An organized group of Indians is eligible for direct funding based on State recognition if the State has expressly determined that the group is an Indian tribe. In addition, the statement of the State's chief executive officer verifying that a tribe is recognized by that State will also be sufficient to verify State recognition for the purpose of direct funding.

(c) For purposes of section 674(c)(2) of the Act (42 U.S.C. 9903(c)(2)) an eligible Indian means a member of an Indian tribe whose income is at or below the poverty line defined in section 673(2) of the Act (42 U.S.C. 9902(2)). An eligible individual under section 674(c)(2) of the Reconciliation Act (42 U.S.C. 9903(c)(2)) means a resident of the State whose income is at or below the poverty line.

(d) An Indian tribe or tribal organization will meet the requirements of section 675(c)(1) (42 U.S.C. 9904(c)(1)) if it certifies that it agrees to use the funds to provide at least one of the services or activities listed in that section.

(e) An Indian tribe or tribal organization is not required to comply with section 675(b) (42 U.S.C. 9904(b)) or to provide the certifications required by the following other provisions of the Reconciliation Act.

(1) Section 675(c)(2)(A) (42 U.S.C. 9904(c)(2)(A));

(2) Section 675(c)(3) (42 U.S.C. 9904(c)(3)); and

(3) Section 675(c)(4) (42 U.S.C. 9904(c)(4)).

(4) Section 675(c)(11) (42 U.S.C. 9904(c)(11)).

(f) In each fiscal year, Indian tribes and tribal organizations may expend for administrative expenses--comparable to the administrative expenses incurred by State at the State level--an amount not to exceed the greater of the amounts determined by:

(1) Multiplying their allotment under section 674 of the Reconciliation Act (42 U.S.C. 9903) by five percent; or (2) Multiplying the allotment by the percentage represented by the ratio of $55,000 to the smallest State allotment (excluding territorial allotments) for that fiscal year.

[47 FR 29486, July 6, 1982, as amended at 52 FR 37967, Oct. 13, 1987]

Sec. 96.45 Preventive health and health services.

(a) This section applies to direct funding of Indian tribes and tribal organizations under the preventive health and health services block grant.

(b) For the purposes of determining eligible applicants under section 1902(d) of the Public Health Service Act, a grantee that received a grant directly from the Secretary in FY 1981 under any of the programs replaced by the preventive health and health services block grant that was specifically targeted toward serving a particular Indian tribe or tribal organization will be considered eligible if the grantee is an Indian tribe or tribal organization at the time it requests funds under this part. Grantees that received funds under formula or Statewide grants, and subgrantees that received funds from any program replaced by the preventive health and health services block grant, are not eligible.

Sec. 96.46 Substance abuse prevention and treatment services.

(a) This section applies to direct funding of Indian tribes and tribal organizations under the substance abuse prevention and treatment Block Grant.

(b) For the purpose of determining eligible applicants under section1933(d) of the Public Health Service Act (42 U.S.C. 300x-33(d)) an Indian tribe or

[[Page 488]]

tribal organization (as defined in subsections (b) and (c) of section 4 of the Indian Self-Determination and Education Assistance Act) that received a direct grant under subpart I of part B of title XIX of the PHS Act (as such existed prior to October 1, 1992) in fiscal year 1991 will be considered eligible for a grant under subpart 2 of part B of title XIX of the PHS Act.

(c) For purposes of the substance abuse prevention and treatment Block Grant, an Indian tribe or tribal organization is not required to comply with the following statutory provisions of the Public Health Service Act: 1923 (42 U.S.C. 300x-23), 1925 (42 U.S.C. 300x-25), 1926 (42 U.S.C. 300x-26), 1928 (42 U.S.C. 300x-28), 1929 (42 U.S.C. 300x-29), and 1943(a)(1) (42 U.S.C. 300x-53(a)(1)). An Indian tribe or tribal organization is to comply with all other statutes and regulations applicable to the Substance Abuse Prevention and Treatment Block Grant.

In each case in which an Indian Tribe receives a direct grant, the State is also responsible for providing services to Native Americans under the State's Block Grant program.

[58 FR 17070, Mar. 31, 1993]

Sec. 96.47 Primary care.

Applications for direct funding of Indian tribes and tribal organizations under the primary care block grant must comply with 42 CFR Part 51c (Grants for Community Health Services).

Sec. 96.48 Low-income home energy assistance.

(a) This section applies to direct funding of Indian tribes under the low-income home energy assistance program.

an organized group of Indians is eligible for direct funding based on State recognition if the State has expressly determined that the group is an Indian tribe. A statement by the State's chief executive officer verifying that a tribe is recognized by that State will also be sufficient to verify State recognition for the purpose of direct funding.

(d) The plan required by section 2604(d)(4) of the Reconciliation Act (42 U.S.C. 8623(d)(4)) shall contain the certification and information required for States under section 2605 (b) and (c) of that Act (42 U.S.C. 8624 (b) and (c)). An Indian tribe or tribal organization is not required to comply with section 2605(a)(2) of the Act (42 U.S.C. 8624(a)(2)).

(e) Where a tribe requests that the Secretary fund another entity to provide energy assistance for tribal members, as provided by section 2604(d)(3) of the Act (42 U.S.C. 8623(d)(3)), the Secretary shall consider the following factors in selecting the grantee: the ability of the other entity to provide low-income home energy assistance, existing tribal-State agreements as to the size and location of the service population, and the history of State services to the Indian people to be served by the other entity.

Subpart E--Enforcement

Sec. 96.50 Complaints.

(a) This section applies to any complaint (other than a complaint alleging violation of the nondiscrimination provisions) that a State has failed to use its allotment under a block grant in accordance with the terms of the act establishing the block grant or the certifications and assurances made by the State pursuant to that act. The Secretary is not required to consider a complaint unless it is submitted as required by this section.

(b) Complaints with respect to the health block grants must be submitted in writing to either the Assistant Secretary for Health or: For the preventive health and health services block grant, the Director, Centers for Disease Control; for the alcohol and drug abuse and mental health services block

[[Page 489]]

grant, the Administrator, Alcohol, Drug Abuse, and Mental Health Administration; for the maternal and child health services block grant, the Administrator, Health Resources and Services Administration. Complaints with respect to the social services block grant must be submitted in writing to the Assistant Secretary for Human Development Services. Complaints with respect to the low-income home energy assistance program and the community services block grant must be submitted in writing to the Director, Office of Community Services. (The address for the Director, Center for Disease Control is 1600 Clifton Road, NE., Atlanta, Georgia 30333. For each of the other officials cited above the address is 200 Independence Avenue SW., Washington, DC 20201.) The complaint must identify the provision of the act, assurance, or certification that was allegedly violated; must specify the basis for the violations it charges; and must include all relevant information known to the person submitting it.

(c) The Department shall promptly furnish a copy of any complaint to the affected State. Any comments received from the State within 60 days (or such longer period as may be agreed upon between the State and the Department) shall be considered by the Department in responding to the complaint. The Department will conduct an investigation of complaints where appropriate.

(d) The Department will provide a written response to complaints within 180 days after receipt. If a final resolution cannot be provided at that time, the response will state the reasons why additional time is necessary. Under the low-income home energy assistance program, within 60 days after receipt of complaints, the Department will provide a written response to the complainant, stating the actions that it has taken to date and, if the complaint has not yet been fully resolved, the timetable for final resolution of the complaint.

(e) The Department recognizes that under the block grant programs the States are primarily responsible for interpreting the governing statutory provisions. As a result, various States may reach different interpretations of the same statutory provisions. This circumstance is consistent with the intent of and statutory authority for the block grant programs. In resolving any issue raised by a complaint or a Federal audit the Department will defer to a State's interpretation of its assurances and of the provisions of the block grant statutes unless the interpretation is clearly erroneous. In any event, the Department will provide copies of complaints to the independent entity responsible for auditing the State's activities under the block grant program involved. Any determination by the Department that a State's interpretation is not clearly erroneous shall not preclude or otherwise prejudice the State auditors' consideration of the question.

[47 FR 29486, July 6, 1982; 47 FR 43062, Sept. 30, 1982, as amended at 52 FR 37967, Oct. 13, 1987; 57 FR 1977, Jan. 16, 1992; 60 FR 21358, May 1, 1995]

Sec. 96.51 Hearings.

(a) The Department will order a State to repay amounts found not to have been expended in accordance with law of the certifications provided by the State only after the Department has provided the State notice of the order and an opportunity for a hearing. Opportunity for a hearing will not be provided, however, when the State, in resolving audit findings or at another time, has agreed that the amounts were not expended in accordance with law or the certifications. The hearing will be governed by Subpart F of this part and will be held in the State if required by statute.

(b) If a State refuses to repay amounts after a final decision that is not subject to further review in the Department, the amounts may be offset against payments to the State. If a statute requires an opportunity for a hearing before such an offset may be made, the hearing will be governed by Subpart F of this part and will be held in the State if required by statute.

(c) The Department will withhold funds from a State only if the Department has provided the State an opportunity for a hearing. The hearing will be governed by Subpart F of this part

[[Page 490]]

and will be held in the State if required by statute.

[47 FR 29486, July 6, 1982, as amended at 52 FR 37967, Oct. 13, 1987]

Sec. 96.52 Appeals.

(a) Decisions resulting from repayment hearings held pursuant to Sec. 96.51(a) of this part may be appealed by either the State or the Department to the Grant Appeals Board.

(b) Decisions resulting from offset hearings held pursuant to Sec. 96.51(b) of this part may not be appealed.

(c) Decisions resulting from withholding hearings held pursuant to Sec. 96.51(c) of this part may be appealed to the Secretary by the State or the Department as follows:

(1) An application for appeal must be received by the Secretary no later than 60 days after the appealing party receives a copy of the presiding officer's decision. The application shall clearly identify the questions for which review is sought and shall explain fully the party's position with respect to those questions. A copy shall be furnished to the other party.

(2) The Secretary may permit the filing of opposing briefs, hold informal conferences, or take whatever other steps the Secretary finds appropriate to decide the appeal.

(3) The Secretary may refer an application for appeal to the Grant Appeals Board. Notwithstanding Part 16 of this title, in the event of such a referral, the Board shall issue a recommended decision that will not become final until affirmed, reversed, or modified by the Secretary.

(d) Any appeal to the Grant Appeals Board under this section shall be governed by Part 16 of this title except that the Board shall not hold a hearing. The Board shall accept any findings with respect to credibility of witnesses made by the presiding officer. The Board may otherwise review and supplement the record as provided for in Part 16 of this title and decide the issues raised.

Subpart F-Hearing Procedure

Sec. 96.60 Scope.

The procedures in this subpart apply when opportunity for a hearing is provided for by Sec. 96.51 of this part.

Sec. 96.61 Initiation of hearing.

(a) A hearing is initiated by a notice of opportunity for hearing from the Department. The notice will:

(1) Be sent by mail, telegram, telex, personal delivery, or any other mode of written communication;

(2) Specify the facts and the action that are the subject of the opportunity for a hearing;

(3) State that the notice of opportunity for hearing and the hearing are governed by these rules; and

(4) State the time within which a hearing may be requested, and state the name, address, and telephone number of the Department employee to whom any request for hearing is to be addressed.

(b) A State offered an opportunity for a hearing has the amount of time specified in the notice, which may not be less than 10 days after receipt of the notice, within which to request a hearing. The request may be filed by mail, telegram, telex, personal delivery, or any other mode of written communication, addressed to the designated Department employee. If no response is filed within that time, the offer is deemed to have been refused and no hearing will be held.

(c) If a hearing is requested, the Department will designate a presiding officer, and (subject to Sec. 96.51 of this part) the hearing will take place at a time and location agreed upon by the State requesting the hearing, the Department, and the presiding officer or, if agreement cannot be reached, at a reasonable time and location designated by the presiding officer.

Sec. 96.62 Presiding officer.

(a) A Department employee to whom the Secretary delegates such authority, or any other agency employee designated by an employee to whom such authority is delegated, may serve as

[[Page 491]]

the presiding officer and conduct a hearing under this subpart.

(b) The presiding officer is to be free from bias or prejudice and may not have participated in the investigation or action that is the subject of the hearing or be subordinate to a person, other than the Secretary, who has participated in such investigation or action.

(c) The Secretary is not precluded by this section from prior participation in the investigation or action that is the subject of the hearing.

(d) A different presiding officer may be substituted for the one originally designated under Sec. 96.61 of this part without notic to the parties.

Sec. 96.63 Communications to presiding officer.

(a) Those persons who are directly involved in the investigation or presentation of the position of the Department or any party at a hearing that is subject to this subpart should avoid any off-the-record communication on the matter to the presiding officer or his advisers if the communication is inconsistent with the requirement of Sec. 96.68 of this part that the administrative record be the exclusive record for decision. If any communication of this type occurs, it is to be reduced to writing and made part of the record, and the other party provided an opportunity to respond.

(b) A copy of any communications between a participant in the hearing and the presiding officer, e.g., a response by the presiding officer to a request for a change in the time of the hearing is to be sent to all parties by the person initiating the communication.

Sec. 96.64 Intervention.

Participation as parties in the hearing by persons other than the State and the Department is not permitted.

Sec. 96.65 Discovery.

The use of interrogatories, depositions, and other forms of discovery shall not be allowed.

Sec. 96.66 Hearing procedure.

(a) A hearing is public, except when the Secretary or the presiding officer determines that all or part of a hearing should be closed to prevent a clearly unwarranted invasion of personal privacy (such as disclosure of information in medical records that would identify patients), to prevent the disclosure of a trade secret or confidential commercial or financial information, or to protect investigatory records compiled for law enforcement purposes that are not available for public disclosure.

(b) A hearing will be conducted by the presiding officer. Employees of the Department will first give a full and complete statement of the action which is the subject of the hearing, together with the information and reasons supporting it, and may present any oral or written information relevant to the hearing. The State may then present any oral or written information relevant to the hearing. Both parties may confront and conduct reasonable cross-examination of any person (except for the presiding officer and counsel for the parties) who makes any statement on the matter at the hearing.

(c) The hearing is informal in nature, and the rules of evidence do not apply. No motions or objections relating to the admissibility of information and views will be made or considered, but either party may comment upon or rebut all such data, information, and views.

(d) The presiding officer may order the hearing to be transcribed. The State may have the hearing transcribed, at the State's expense, in which case a copy of the transcript is to be furnished to the Department at the Department's expense.

(e) The presiding officer may, if appropriate, allow for the submission of post-hearing briefs. The presiding officer shall prepare a written decision, which shall be based on a preponderance of the evidence, shall include a statement of reasons for the decision, and shall be final unless appealed pursuant to Sec. 96.52 of this part. If post-hearing briefs were not permitted, the parties to the hearing will be given the opportunity to review and comment on the presiding officer's decision prior to its being issued.

(f) The presiding officer shall include as part of the decision a finding on the

[[Page 492]]

credibility of witnesses (other than expert witnesses) whenever credibility is a material issue.

(g) The presiding officer shall furnish a copy of the decision to the parties.

(h) The presiding officer has the power to take such actions and make such rulings as are necessary or appropriate to maintain order and to conduct a fair, expeditious, and impartial hearing, and to enforce the requirements of this subpart concerning the conduct of hearings. The presiding officer may direct that the hearing be conducted in any suitable manner permitted by law and these regulations.

(i) The Secretary or the presiding officer has the power to suspend, modify, or waive any provision of this subpart.

Sec. 96.67 Right to counsel.

Any party to a hearing under this part has the right at all times to be advised and accompanied by counsel.

Sec. 96.68 Administrative record of a hearing.

(a) The exclusive administrative record of the hearing consists of the following:

(1) The notice of opportunity for hearing and the response.

(2) All written information and views submitted to the presiding officer at the hearing or after if specifically permitted by the presiding officer.

(3) Any transcript of the hearing.

(4) The presiding officer's decision and any briefs or comments on the decision under Sec. 96.66(e) of this part.

(5) All letters or communications between participants and the presiding officer or the Secretary referred to in Sec. 96.63 of this part.

(b) The record of the hearing is closed to the submission of information and views at the close of the hearing, unless the presiding officer specifically permits additional time for a further submission.

Subpart G--Social Services Block Grants

Sec. 96.70 Scope.

This subpart applies to the social services block grant.

Sec. 96.71 Definitions.

(a) Section 2005 (a)(2) and (a)(5) (42 U.S.C. 1397d (a)(2) and (a)(5)) of the Social Security Act establishes prohibitions against the provision of room and board and medical care unless, among other reasons, they are an ``integral but subordinate'' part of a State-authorized social service. ``Integral but subordinate'' means that the room and board provided for a short term or medical care is a minor but essential adjunct to the service of which it is a part and is necessary to achieve the objective of that service. Room and board provided for a short term shall not be considered an integral but subordinate part of a social service when it is provided to an individual in a foster family home or other facility the primary purpose of which is to provide food, shelter, and care or supervision, except for temporary emergency shelter provided as a protective service.

(b) As used in section 2005(a)(5) of the Social Security Act (42 U.S.C. 1397d (a)(5)) with respect to the limitations governing the provision of services by employees of certain institutions, employees includes staff, contractors, or other individuals whose activities are under the professional direction or direct supervision of the institution.

[47 FR 29486, July 6, 1982; 47 FR 43062, Sept. 30, 1982]

Sec. 96.72 Transferability of funds.

Under section 2002(d) of the Social Security Act (42 U.S.C. 1397a(d)), funds may be transferred in accordance with the provisions of that section to the preventive health and health services, alcohol and drug abuse and mental health services, primary care, maternal and child health services, and low-income home energy assistance block grants. In addition, funds may be transferred to other Federal block grants for support of health services, health promotion and disease prevention activities, or low-income home energy assistance (or any combination of those activities).

Sec. 96.73 Sterilization.

If a State authorizes sterilization as a family planning service, it must comply with the provisions of 42 CFR Part

[[Page 493]]

441, Subpart F, except that the State plan requirement under 42 CFR 441.252 does not apply.

[47 FR 33702, Aug. 4, 1982]

Sec. 96.74 Annual reporting requirements.

(a) Annual report. In accordance with 42 U.S.C. 1397e, each state

must submit an annual report to the Secretary by the due dates specified

in Sec. 96.17 of this part. The annual report must cover the most

recently completed fiscal year and, except for the data in paragraphs

(a) (1) through (4) of this section, may be submitted in the format of

the state's choice. The annual report must address the requirements in

section 2006(a) of the Act, include the specific data required by

section 2006(c), and include other information as follows:

(1) The number of individuals who receive services paid for in whole

or in part with federal funds under the Social Services Block Grant,

showing separately the number of children and the number of adults who

received such services (section 2006(c)(1));

(2) The amount of Social Services Block Grant funds spent in

providing each service, showing separately for each service the average

amount spent per child recipient and per adult recipient (section

2006(c)(2));

(3) The total amount of federal, state and local funds spent in

providing each service, including Social Services Block Grant funds;

(4) The method(s) by which each service is provided, showing

separately the services provided by public agencies, private agencies,

or both (section 2006(c)(4)); and

(5) The criteria applied in determining eligibility for each service

such as income eligibility guidelines, sliding fee scales, the effect of

public assistance benefits, and any requirements for enrollment in

school or training programs (section 2006(c)(3)).

(b) Reporting requirement. (1) Each state must use the uniform

definitions of services in appendix A of this part, categories 1-28, in

submitting the data required in paragraph (a) of this section. Where a

state cannot use the uniform definitions, it should report the data

under category 29, ``Other Services.'' The state's definitions of each

of the services listed in category 29 must be included in the annual

report.

(2) Each state must use the reporting form issued by the Department

to report the data required in paragraphs (a) (1) through (4) of this

section.

(3) In reporting recipient and expenditure data, each state must

report actual numbers of recipients and actual expenditures when this

information is available. For purposes of this report, each state

should, if possible, count only a single recipient for each service.

States should also consider a service provided to a recipient for the

length of the reporting period (one year) or any fraction thereof as a

single service. Data based on sampling and/or estimates will be accepted

when actual figures are unavailable. Each state must indicate for each

service whether the data are based on actual figures, sampling, or

estimates and must describe the sampling and/or estimation process(es)

it used to obtain these data in the annual report. Each state must also

indicate, in reporting recipient data, whether the data reflects an

unduplicated count of recipients.

(4) Each state must use category 30, ``Other Expenditures,'' to

report non-service expenditures. Only total dollar amounts in this

category are required, i.e., they need not be reported by recipient

count or cost per adult/child. This will include carry over balances,

carry forward balances, funds transferred to or from the SSBG program,

and administrative costs as defined by the state.

(5) Each state must use its own definition of the terms ``child''

and ``adult'' in reporting the data required in paragraphs (a) (1)

through (5) of this section.

(6) Each state's definition of ``child'' and ``adult'' must be

reported as a part of the eligibility criteria for each service required

in paragraph (a)(5) of this section. The data on eligibility criteria

may be submitted in whatever format the state chooses as a part of its

annual report.

report available to the public and to the Department, a state may submit

the information specified in paragraphs (a) (1) through (4) of this

section using electronic equipment. A full description of

[[Page 494]]

procedures for electronic transmission of data, and of the availability

of computer diskettes, is included in Appendix B to this part.

[58 FR 60129, Nov. 15, 1993]

Subpart H--Low-income Home Energy Assistance Program | Top of Page

NOTE: A linked version of Subpart H can be viewed HERE.

Sec. 96.80 Scope.

This subpart applies to the low-income home energy assistance

program.

Sec. 96.81 Reallotment report.

As a part of the reallotment procedure established by section

2607(b) of Public Law 97-35 (42 U.S.C. 8626(b)), beginning with funds to

be held available for fiscal year 1992, each recipient of funds must

submit a report to the Secretary by August 1 of each year containing the

following information:

(a) The amount of funds that the grantee desires remain available

for obligation in the succeeding fiscal year, not to exceed 10 percent

of the funds payable to the grantee and not transferred pursuant to

section 2604(f) of Public Law 97-35 (42 U.S.C. 8623(f));

(b) A statement of the reasons that this amount to remain available

will not be used in the fiscal year for which it was allotted;

amount held available; and

(d) The amount of funds, if any, to be subject to reallotment.

[57 FR 1977, Jan. 16, 1992]

Sec. 96.82 Required report.

In accordance with 42 U.S.C. 8629(a), each State receiving funds

shall submit to the Department by October 31 of each year a report of:

(a) The number and income levels of the households assisted by

LIHEAP funds during the preceding fiscal year; and

(b) The number of households assisted by LIHEAP funds during the

preceding fiscal year that contain one or more individuals who are 60

years or older and the number which contain one or more individuals who

are handicapped.

(Approved by the Office of Management and Budget under control number

0960-0446)

[52 FR 37967, Oct. 13, 1987]

Sec. 96.83 Increase in maximum amount that may be used for

weatherization and other energy-related home repair.

(a) Scope. This section concerns requests for waivers increasing

from 15 percent to up to 25 percent of LIHEAP funds allotted or

available to a grantee for a fiscal year, the maximum amount that

grantees may use for low-cost residential weatherization and other

energy-related home repair for low-income households (hereafter referred

to as ``weatherization''), pursuant to section 2605(k) of Public Law 97-

35 (42 U.S.C. 8624(k)).

(b) Public inspection and comment. Before submitting waiver requests

to the Department, grantees must make proposed waiver requests available

for public inspection within their jurisdictions in a manner that will

facilitate timely and meaningful review of, and comment upon, these

requests. Written public comments on proposed waiver requests must be

made available for public inspection upon their receipt by grantees, as

must any summaries prepared of written comments, and transcripts and/or

summaries of verbal comments made on proposed requests at public

meetings or hearings. Proposed waiver requests, and any preliminary

waiver requests, must be made available for public inspection and

comment until at least March 15 of the fiscal year for which the waiver

is to be requested. Copies of actual waiver requests must be made

available for public inspection upon submission of the requests to the

Department.

executive officer (or his or her designee) may request a waiver of the

weatherization obligation limit for this fiscal year, if the grantee

meets criteria in paragraphs (c)(2)(i), (c)(2)(ii), and (c)(2)(iii) of

this section, or can show ``good cause'' for obtaining a waiver despite

a failure to meet one or more of these criteria. (If the request is made

by the chief executive officer's designee and

[[Page 495]]

the Department does not have on file written evidence of the

designation, the request also must include evidence of the appropriate

delegation of authority.) Waiver requests must be in writing and must

include the information specified in paragraphs (c)(1) through (c)(6) of

this section. The grantee may submit a preliminary waiver request for a

fiscal year, between February 1 and March 31 of the fiscal year for

which the waiver is requested. If a grantee chooses to submit a

preliminary waiver request, the preliminary request must include the

information specified in paragraphs (c)(1) through (c)(6) of this

section; in addition, after March 31 the chief executive officer (or his

or her designee) must submit the information specified in paragraphs

(c)(7) through (c)(10) of this section, to complete the preliminary

waiver request.

(1) A statement of the total percent of its LIHEAP funds allotted or

available in the fiscal year for which the waiver is requested, that the

grantee desires to use for weatherization.

(2) A statement of whether the grantee has met each of the following

three criteria:

(i) In the fiscal year for which the waiver is requested, the

combined total (aggregate) number of households in the grantee's service

population that will receive LIHEAP heating, cooling, and crisis

assistance benefits that are provided from Federal LIHEAP allotments

from regular and supplemental appropriations will not be fewer than the

combined total (aggregate) number that received such benefits in the

preceding fiscal year;

(ii) In the fiscal year for which the waiver is requested, the

combined total (aggregate) amount, in dollars, of LIHEAP heating,

cooling, and crisis assistance benefits received by the grantee's

service population that are provided from Federal LIHEAP allotments from

regular and supplemental appropriations will not be less than the

combined total (aggregate) amount received in the preceding fiscal year;

and

(iii) All LIHEAP weatherization activities to be carried out by the

grantee in the fiscal year for which the wavier is requested have been

shown to produce measurable savings in energy expenditures.

(3) With regard to criterion in paragraph (c)(2)(i) of this section,

a statement of the grantee's best estimate of the appropriate household

totals for the fiscal year for which the wavier is requested and for the

preceding fiscal year.

(4) With regard to criterion in paragraph (c)(2)(ii) of this

section, a statement of the grantee's best estimate of the appropriate

benefit totals, in dollars, for the fiscal year for which the waiver is

requested and for the preceding fiscal year.

(5) With regard to criterion in paragraph (c)(2)(iii) of this

section, a description of the weatherization activities to be carried

out by the grantee in the fiscal year for which the wavier is requested

(with all LIHEAP funds proposed to be used for weatherization, not just

with the amount over 15 percent), and an explanation of the specific

criteria under which the grantee has determined whether these activities

have been shown to produce measurable savings in energy expenditures.

(6) A description of how and when the proposed wavier request was

made available for timely and meaningful public review and comment,

copies and/or summaries of public comments received on the request

(including transcripts and/or summaries of any comments made on the

request at public meetings or hearings), a statement of the method for

reviewing public comments, and a statement of the changes, if any, that

were made in response to these comments.

(7) To complete a preliminary waiver request: Official confirmation

that the grantee wishes approval of the waiver request.

(8) To complete a preliminary waiver request: A statement of whether

any public comments were received after preparation of the preliminary

waiver request and, if so, copies and/or summaries of these comments

(including transcripts and/or summaries of any comments made on the

request at public meetings or hearings), and a statement of the changes,

if any, that were made in response to these comments.

(9) To complete a preliminary waiver request: A statement of whether

any

[[Page 496]]

material/substantive changes of fact have occurred in information

included in the preliminary waiver request since its submission, and, if

so, a description of the change(s).

(10) To complete a preliminary waiver request: A description of any

other changes to the preliminary request.

(d) ``Standard'' waiver. If the Department determines that a grantee

has meet the three criteria in paragraph (c)(2) of this section, has

provided all information required by paragraph (c) of this section, has

shown adequate concern for timely and meaningful public review and

comment, and has proposed weatherization that meets all relevant

requirements of title XXVI of Public Law 97-35 (42 U.S.C. 8621 et seq.)

and 45 CFR part 96, the Department will approve a ``standard'' waiver.

(e) ``Good cause'' waiver. (1) If a grantee does not meet one or

more of the three criteria in paragraph (c)(2) of this section, then the

grantee may submit documentation that demonstrates good cause why a

waiver should be granted despite the grantee's failure to meet this

criterion or these criteria. ``Good cause'' waiver requests must include

the following information, in addition to the information specified in

paragraph (c) of this section:

(i) For each criterion under paragraph (c)(2) of this section that

the grantee does not meet, an explanation of the specific reasons

demonstrating good cause why the grantee does not meet the criterion and

yet proposes to use additional funds for weatherization, citing

measurable, quantified data, and stating the source(s) of the data used;

(ii) A statement of the grantee's LIHEAP heating, cooling, and

crisis assistance eligibility standards (eligibility criteria) and

benefits levels for the fiscal year for which the waiver is requested

and for the preceding fiscal year; and, if eligibility standards were

less restrictive and/or benefit levels were higher in the preceding

fiscal year for one or more of these program components, an explanation

of the reasons demonstrating good cause why a waiver should be granted

in spite of this fact;

(iii) A statement of the grantee's opening and closing dates for

applications for LIHEAP heating, cooling, and crisis assistance in the

fiscal year for which the waiver is requested and in the preceding

fiscal year, and a description of the grantee's outreach efforts for

heating, cooling, and crisis assistance in the fiscal year for which the

waiver is requested and in the preceding fiscal year, and, if the

grantee's application period was longer and/or outreach efforts were

greater in the preceding fiscal year for one or more of these program

components, an explanation of the reasons demonstrating good cause why a

waiver should be granted in spite of this fact; and

(iv) If the grantee took, or will take, other actions that led, or

will lead, to a reduction in the number of applications for LIHEAP

heating, cooling, and/or crisis assistance, from the preceding fiscal

year to the fiscal year for which the waiver is requested, a description

of these actions and an explanation demonstrating good cause why a

waiver should be granted in spite of these actions.

(2) If the Department determines that a grantee requesting a ``good

cause'' waiver has demonstrated good cause why a waiver should be

granted, has provided all information required by paragraphs (c) and

(e)(1) of this section, has shown adequate concern for timely and

meaningful public review and comment, and has proposed weatherization

that meets all relevant requirements of title XXVI of Public Law 97-35

(42 U.S.C. 8621 et seq.) and 45 CFR part 96, the Department will approve

a ``good cause'' waiver.

(f) Approvals and disapprovals. After receiving the grantee's

complete waiver request, the Department will respond in writing within

45 days, informing the grantee whether the request is approved on either

a ``standard'' or ``good cause'' basis. The Department may request

additional information and/or clarification from the grantee. If

additional information and/or clarification is requested, the 45-day

period for the Department's response will start when the additional

information and/or clarification is received. No waiver will be granted

for a previous fiscal year.

[[Page 497]]

(g) Effective period. Waivers will be effective from the date of the

Department's written approval until the funds for which the waiver is

granted are obligated in accordance with title XXVI of Public Law 97-35

(42 U.S.C. 8621 et seq.) and 45 CFR part 96. Funds for which a

weatherization waiver was granted that are carried over to the following

fiscal year and used for weatherization shall not be considered ``funds

allotted'' or ``funds available'' for the purposes of calculating the

maximum amount that may be used for weatherization in the succeeding

fiscal year.

[60 FR 21358, May 1, 1995; 60 FR 33260, June 27, 1995]

Sec. 96.84 Miscellaneous.

(a) Rights and responsibilities of territories. Except as otherwise

provided, a territory eligible for funds shall have the same rights and

responsibilities as a State.

(b) Applicability of assurances. The assurances in section 2605(b)

of Public Law 97-35 (42 U.S.C. 8624(b)), as amended, pertain to all

forms of assistance provided by the grantee, with the exception of

assurance 15, which applies to heating, cooling, and energy crisis

intervention assistance.

appropriate systems and procedures to prevent, detect, and correct

waste, fraud, and abuse in activities funded under the low-income home

energy assistance program. The systems and procedures are to address

possible waste, fraud, and abuse by clients, vendors, and administering

agencies.

[57 FR 1978, Jan. 16, 1992]

Sec. 96.85 Income eligibility.

(a) Application of poverty income guidelines. In implementing the

income eligibility standards in section 2605(b)(2) of Pub. L. 97-35 (42

U.S.C. 8624), grantees using the Federal Government's official poverty

income guidelines as a basis for determining eligibility for assistance

shall, by October 1 each year, adjust their income eligibility criteria

so that they are in accord with the most recently published update of

the guidelines. Grantees may adjust their income eligibility criteria to

accord with the most recently published revision to the poverty income

guidelines at any time between publication of the revision and the

following October 1.

(b) Adjustment of annual median income for household size. In order

to determine the State median income for households that have other than

four individuals, grantees shall adjust the State median income figures

(published annually by the Secretary), by the following percentages:

(1) One-person household, 52 percent;

(2) Two-person household, 68 percent;

(3) Three-person household, 84 percent;

(4) Four-person household, 100 percent;

(5) Five-person household, 116 percent;

(6) Six-person household, 132 percent; and

(7) For each additional household member above six persons, add

three percentage points to the percentage adjustment for a six-person

household.

[53 FR 6827, Mar. 3, 1988]

Sec. 96.86 Exemption from requirement for additional outreach and

intake services.

The requirement in section 2605(b)(15) of Public Law 97-35 (42

U.S.C. 8624(b)(15)), as amended by section 704(a)(4) of the Augustus F.

Hawkins Human Services Reauthorization Act of 1990 (Pub. L. 101-501)--

concerning additional outreach and intake services--does not apply to:

(a) Indian tribes and tribal organizations; and

(b) Territories whose annual LIHEAP allotments under section 2602(b)

of Public Law 97-35 (42 U.S.C. 8621(b)) are $200,000 or less.

[57 FR 1978, Jan. 16, 1992]

Sec. 96.87 Leveraging incentive program.

(a) Scope and eligible grantees. (1) This section concerns the

leveraging incentive program authorized by section 2607A of Public Law

97-35 (42 U.S.C. 8626a).

(2)(i) The only entities eligible to receive leveraging incentive

funds from the Department are States (including the District of

Columbia), Indian

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tribes, tribal organizations, and territories that received direct

Federal LIHEAP funding under section 2602(b) of Public Law 97-35 (42

U.S.C. 8621(b)) in both the base period for which leveraged resources

are reported, and the award period for which leveraging incentive funds

are sought; and tribes and tribal organizations described in paragraphs

(a)(2)(ii) and (a)(2)(iii) of this section.

(ii) Indian tribes that received LIHEAP services under section

2602(b) of Public Law 97-35 (42 U.S.C. 8621(b)) through a directly-

funded tribal organization in the base period for which leveraged

resources are reported, and receive direct Federal LIHEAP funding under

section 2602(b) in the award period, will receive leveraging incentive

funds allocable to them if they submit leveraging reports meeting all

applicable requirements. If the tribal organization continues to receive

direct funding under section 2602(b) in the award period, the tribal

organization also will receive incentive funds allocable to it if it

submits a leveraging report meeting all applicable requirements. In such

cases, incentive funds will be allocated among the involved entities

that submit leveraging reports, as agreed by these entities. If they

cannot agree, HHS will allocate incentive funds based on the comparative

role of each entity in obtaining and/or administering the leveraged

resources, and/or their relative number of LIHEAP-eligible households.

(iii) If a tribe received direct Federal LIHEAP funding under

section 2602(b) of Public Law 97-35 (42 U.S.C. 8621(b)) in the base

period for which resources leveraged by the tribe are reported, and the

tribe receives LIHEAP services under section 2602(b) through a directly-

funded tribal organization in the award period, the tribal organization

will receive leveraging incentive funds on behalf of the tribe for the

resources if the tribal organization submits a leveraging report meeting

all applicable requirements.

(b) Definitions--(1) Award period means the fiscal year during which

leveraging incentive funds are distributed to grantees by the

Department, based on the countable leveraging activities they reported

to the Department for the preceding fiscal year (the base period).

(2) Base period means the fiscal year for which a grantee's

leveraging activities are reported to the Department; grantees'

countable leveraging activities during the base period or base year are

the basis for the distribution of leveraging incentive funds during the

succeeding fiscal year (the award period or award year). Leveraged

resources are counted in the base period during which their benefits are

provided to low-income households.

(3) Countable loan fund means revolving loan funds and similar loan

instruments in which:

(i) The sources of both the loaned and the repaid funds meet the

requirements of this section, including the prohibitions of paragraphs

(f)(1), (f)(2), and (f)(3) of this section;

(ii) Neither the loaned nor the repaid funds are Federal funds or

payments from low-income households, and the loans are not made to low-

income households; and

(iii) The benefits provided by the loaned funds meet the

requirements of this section for countable leveraged resources and

benefits.

(4) Countable petroleum violation escrow funds means petroleum

violation escrow (oil overcharge) funds that were distributed to a State

or territory by the Department of Energy (DOE) after October 1, 1990,

and interest earned in accordance with DOE policies on petroleum

violation escrow funds that were distributed to a State or territory by

DOE after October 1, 1990, that:

(i) Were used to assist low-income households to meet the costs of

home energy through (that is, within and as a part of) a State or

territory's LIHEAP program, another Federal program, or a non-Federal

program, in accordance with a submission for use of these petroleum

violation escrow funds that was approved by DOE;

(ii) Were not previously required to be allocated to low-income

households; and

(iii) Meet the requirements of paragraph (d)(1) of this section, and

of paragraph (d)(2)(ii) or (d)(2)(iii) or this section.

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(5) Home energy means a source of heating or cooling in residential

dwellings.

(6) Low-income households means federally eligible (federally

qualified) households meeting the standards for LIHEAP income

eligibility and/or LIHEAP categorical eligibility as set by section

2605(b)(2) of Public Law 97-35 (42 U.S.C. 8624(b)(2)).

(7) Weatherization means low-cost residential weatherization and

other energy-related home repair for low-income households.

Weatherization must be directly related to home energy.

leveraging programs.

(1) Each fiscal year, States (excluding Indian tribes, tribal

organizations, and territories) may spend up to the greater of $35,000

or 0.08 percent of their net Federal LIHEAP allotments (funds payable)

allocated under section 2602(b) of Public Law 97-35 (42 U.S.C. 8621(b))

specifically to identify, develop, and demonstrate leveraging programs

under section 2607A(c)(2) of Public Law 97-35 (42 U.S.C. 8626a(c)(2)).

Each fiscal year, Indian tribes, tribal organizations, and territories

may spend up to the greater of two (2.0) percent or $100 of their

Federal LIHEAP allotments allocated under section 2602(b) of Public law

97-35 (42 U.S.C. 8621(b)) specifically to identify, develop, and

demonstrate leveraging programs under section 2607A(c)(2) of Public Law

97-35 (42 U.S.C. 8626a(c)(2)). For the purpose of this paragraph,

Federal LIHEAP allotments include funds from regular and supplemental

appropriations, with the exception of leveraging incentive funds

provided under section 2602(d) of Public Law 97-35 (42 U.S.C. 8621(d)).

(2) LIHEAP funds used under section 2607A(c)(2) of Public Law 97-35

(42 U.S.C. 8626a(c)(2)) specifically to identify, develop, and

demonstrate leveraging programs are not subject to the limitation in

section 2605(b)(9) of Public Law 97-35 (42 U.S.C. 8624(b)(9)) on the

maximum percent of Federal funds that may be used for costs of planning

and administration.

(d) Basic requirements for leveraged resources and benefits. (1) In

order to be counted under the leveraging incentive program, leveraged

resources and benefits must meet all of the following five criteria:

(i) They are from non-Federal sources.

(ii) They are provided to the grantee's low-income home energy

assistance program, or to federally qualified low-income households as

described in section 2605(b)(2) of Public Law 97-35 (42 U.S.C.

8624(b)(2)).

(iii) They are measurable and quantifiable in dollars.

(iv) They represent a net addition to the total home energy

resources available to low-income households in excess of the amount of

such resources that could be acquired by these households through the

purchase of home energy, or the purchase of items that help these

households meet the cost of home energy, at commonly available household

rates or costs, or that could be obtained with regular LIHEAP allotments

provided under section 2602(b) of Public Law 97-35 (42 U.S.C. 8621(b)).

(v) They meet the requirements for countable leveraged resources and

benefits throughout this section and section 2607A of Public Law 97-35

(42 U.S.C. 8626a).

(2) Also, in order to be counted under the leveraging incentive

program, leveraged resources and benefits must meet at least one of the

following three criteria:

(i) The grantee's LIHEAP program had an active, substantive role in

developing and/or acquiring the resource/benefits from home energy

vendor(s) through negotiation, regulation, and/or competitive bid. The

actions or efforts of one or more staff of the grantee's LIHEAP

program--at the central and/or local level--and/or one or more staff of

LIHEAP program subrecipient(s) acting in that capacity, were substantial

and significant in obtaining the resource/benefits from the vendor(s).

(ii) The grantee appropriated or mandated the resource/benefits for

distribution to low-income households through (that is, within and as a

part of) its LIHEAP program. The resource/benefits are provided through

the grantee's LIHEAP program to low-income households eligible under the

grantee's LIHEAP standards, in accordance with the LIHEAP statute and

regulations

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and consistent with the grantee's LIHEAP plan and program policies that

were in effect during the base period, as if they were provided from the

grantee's Federal LIHEAP allotment.

(iii) The grantee appropriated or mandated the resource/benefits for

distribution to low-income households as described in its LIHEAP plan

(referred to in section 2605(c)(1)(A) of Public Law 97-35) (42 U.S.C.

8624(c)(1)(A)). The resource/benefits are provided to low-income

households as a supplement and/or alternative to the grantee's LIHEAP

program, outside (that is, not through, within, or as a part of) the

LIHEAP program. The resource/benefits are integrated and coordinated

with the grantee's LIHEAP program. Before the end of the base period,

the plan identifies and describes the resource/benefits, their

source(s), and their integration/coordination with the LIHEAP program.

The Department will determine resources/benefits to be integrated and

coordinated with the LIHEAP program if they meet at least one of the

following eight conditions. If a resource meets at least one of

conditions A through F when the grantee's LIHEAP program is operating

(and meets all other applicable requirements), the resource also is

countable when the LIHEAP program is not operating.

(A) For all households served by the resource, the assistance

provided by the resource depends on and is determined by the assistance

provided to these households by the grantee's LIHEAP program in the base

period. The resource supplements LIHEAP assistance that was not

sufficient to meet households' home energy needs, and the type and

amount of assistance provided by the resource is directly affected by

the LIHEAP assistance received by the households.

(B) Receipt of LIHEAP assistance in the base period is necessary to

receive assistance from the resource. The resource serves only

households that received LIHEAP assistance in the base period.

LIHEAP assistance in the base period because of unavailability of LIHEAP

funds, is necessary to receive assistance from the resource.

(D) For discounts and waivers: eligibility for and/or receipt of

assistance under the grantee's LIHEAP program in the base period, and/or

eligibility under the Federal standards set by section 2605(b)(2) of

Public Law 97-35 (42 U.S.C. 8624(b)(2)), is necessary to receive the

discount or waiver.

(E) During the period when the grantee's LIHEAP program is

operating, staff of the grantee's LIHEAP program and/or staff assigned

to the LIHEAP program by a local LIHEAP administering agency or

agencies, and staff assigned to the resource communicate orally and/or

in writing about how to meet the home energy needs of specific,

individual households. For the duration of the LIHEAP program, this

communication takes place before assistance is provided to each

household to be served by the resource, unless the applicant for

assistance from the resource presents documentation of LIHEAP

eligibility and/or the amount of LIHEAP assistance received or to be

received.

(F) A written agreement between the grantee's LIHEAP program or

local LIHEAP administering agency, and the agency administering the

resource, specifies the following about the resource: eligibility

criteria; benefit levels; period of operation; how the LIHEAP program

and the resource are integrated/coordinated; and relationship between

LIHEAP eligibility and/or benefit levels, and eligibility and/or benefit

levels for the resource. The agreement provides for annual or more

frequent reports to be provided to the LIHEAP program by the agency

administering the resource.

(G) The resource accepts referrals from the grantee's LIHEAP

program, and as long as the resource has benefits available, it provides

assistance to all households that are referred by the LIHEAP program and

that meet the resource's eligibility requirements. Under this condition,

only the benefits provided to households referred by the LIHEAP program

are countable.

(H) Before the grantee's LIHEAP heating, cooling, crisis, and/or

weatherization assistance component(s) open and/or after the grantee's

LIHEAP heating, cooling, crisis, and/or weatherization assistance

component(s) close

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for the season or for the fiscal year, or before the entire LIHEAP

program opens and/or after the entire LIHEAP program closes for the

season or for the fiscal year, the resource is made available

specifically to fill the gap caused by the absence of the LIHEAP

component(s) or program. The resource is not available while the LIHEAP

component(s) or program is operating.

(e) Countable leveraged resources and benefits. Resources and

benefits that are countable under the leveraging incentive program

include but are not limited to the following, provided that they also

meet all other applicable requirements:

(1) Cash resources: State, tribal, territorial, and other public and

private non-Federal funds, including countable loan funds and countable

petroleum violation escrow funds as defined in paragraphs (b)(3) and

(b)(4) of this section, that are used for:

(i) Heating, cooling, and energy crisis assistance payments and cash

benefits made in the base period to or on behalf of low-income

households toward their home energy costs (including home energy bills,

taxes on home energy sales/purchases and services, connection and

reconnection fees, application fees, late payment charges, bulk fuel

tank rental or purchase costs, and security deposits that are retained

for six months or longer);

(ii) Purchase of fuels that are provided to low-income households in

the base period for home energy (such as fuel oil, liquefied petroleum

gas, and wood);

(iii) Purchase of weatherization materials that are installed in

recipients' homes in the base period;

(iv) Purchase of the following tangible items that are provided to

low-income households and/or installed in recipients' homes in the base

period: blankets, space heating devices, equipment, and systems; space

cooling devices, equipment, and systems; and other tangible items that

help low-income households meet the costs of home energy and are

specifically approved by the Department as countable leveraged

resources;

(v) Installation, replacement, and repair of the following in the

base period: weatherization materials; space heating devices, equipment,

and systems; space cooling devices, equipment, and systems; and other

tangible items that help low-income households meet the costs of home

energy and are specifically approved by the Department;

(vi) The following services, when they are an integral part of

weatherization to help low-income households meet the costs of home

energy in the base period: installation, replacement, and repair of

windows, exterior doors, roofs, exterior walls, and exterior floors;

pre-weatherization home energy audits of homes that were weatherized as

a result of these audits; and post-weatherization inspection of homes;

and

(vii) The following services, when they are provided (carried out)

in the base period: installation, replacement, and repair of smoke/fire

alarms that are an integral part, and necessary for safe operation, of a

home heating or cooling system installed or repaired as a weatherization

activity; and asbestos removal and that is an integral part of, and

necessary to carry out, weatherization to help low-income households

meet the costs of home energy.

(2) Home energy discounts and waivers that are provided in the base

period to low-income households and pertain to generally applicable

prices, rates, fees, charges, costs, and/or requirements, in the amount

of the discount, reduction, waiver, or forgiveness, or that apply to

certain tangible fuel and non-fuel items and to certain services, that

are provided in the base period to low-income households and help these

households meet the costs of home energy, in the amount of the discount

or reduction:

(i) Discounts or reductions in utility and bulk fuel prices, rates,

or bills;

(ii) Partial or full forgiveness of home energy bill arrearages;

(iii) Partial or full waivers of utility and other home energy

connection and reconnection fees, application fees, late payment

charges, bulk fuel tank rental or purchase costs, and home energy

security deposits that are retained for six months or longer;

(iv) Reductions in and partial or full waivers of non-Federal taxes

on home energy sales/purchases and services, and reductions in and

partial or full

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waivers of other non-Federal taxes provided as tax ``credits'' to low-

income households to offset their home energy costs, except when Federal

funds or Federal tax ``credits'' provide payment or reimbursement for

these reductions/waivers;

(v) Discounts or reductions in the cost of the following tangible

items that are provided to low-income households and/or installed in

recipients' homes: weatherization materials; blankets; space heating

devices, equipment, and systems; space cooling devices, equipment, and

systems; and other tangible items that are specifically approved by the

Department;

(vi) Discounts or reductions in the cost of installation,

replacement, and repair of the following: weatherization materials;

space heating devices, equipment, and systems; space cooling devices,

equipment, and systems; and other tangible items that help low-income

households meet the costs of home energy and are specifically approved

by the Department;

(vii) Discounts or reductions in the cost of the following services,

when the services are an integral part of weatherization to help low-

income households meet the costs of home energy: installation,

replacement, and repair of windows, exterior doors, roofs, exterior

walls, and exterior floors; pre-weatherization home energy audits of

homes that were weatherized as a result of these audits; and post-

weatherization inspection of homes; and

(viii) Discounts or reductions in the cost of installation,

replacement, and repair of smoke/fire alarms that are an integral part,

and necessary for safe operation, of a home heating or cooling system

installed or repaired as a weatherization activity; and discounts or

reductions in the cost of asbestos removal that is an integral part of,

and necessary to carry out, weatherization to help low-income households

meet the costs of home energy.

(3) Certain third-party in-kind contributions that are provided in

the base period to low-income households:

(i) Donated fuels used by recipient households for home energy (such

as fuel oil, liquefied petroleum gas, and wood);

(ii) Donated weatherization materials that are installed in

recipients' homes;

(iii) Donated blankets; donated space heating devices, equipment,

and systems; donated space cooling devices, equipment, and systems; and

other donated tangible items that help low-income households meet the

costs of home energy and are specifically approved by the Department as

countable leveraged resources;

(iv) Unpaid volunteers' services specifically to install, replace,

and repair the following: weatherization materials; space heating

devices, equipment, and systems; space cooling devices, equipment, and

systems; and other items that help low-income households meet the costs

of home energy and are specifically approved by the Department;

(v) Unpaid volunteers' services specifically to provide (carry out)

the following, when these services are an integral part of

weatherization to help low-income households meet the costs of home

energy: installation, replacement, and repair of windows, exterior

doors, roofs, exterior walls, and exterior floors; pre-weatherization

home energy audits of homes that were weatherized as a result of these

audits; and post-weatherization inspection of homes;

(vi) Unpaid volunteers' services specifically to: install, replace,

and repair smoke/fire alarms as an integral part, and necessary for safe

operation, of a home heating or cooling system installed or repaired as

a weatherization activity; and remove asbestos as an integral part of,

and necessary to carry out, weatherization to help low-income households

meet the costs of home energy;

(vii) Paid staff's services that are donated by the employer

specifically to install, replace, and repair the following:

weatherization materials; space heating devices, equipment, and systems;

space cooling devices, equipment, and systems; and other items that help

low-income households meet the costs of home energy and are specifically

approved by the Department;

(viii) Paid staff's services that are donated by the employer

specifically to provide (carry out) the following, when

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these services are an integral part of weatherization to help low-income

households meet the costs of home energy: installation, replacement, and

repair of windows, exterior doors, roofs, exterior walls, and exterior

floors; pre-weatherization home energy audits of homes that were

weatherized as a result of these audits; and post-weatherization

inspection of homes; and

(ix) Paid staff's services that are donated by the employer

specifically to: install, replace, and repair smoke/fire alarms as an

integral part, and necessary for safe operation, of a home heating or

cooling system installed or repaired as a weatherization activity; and

remove asbestos as an integral part of, and necessary to carry out,

weatherization to help low-income households meet the costs of home

energy.

(f) Resources and benefits that cannot be counted. The following

resources and benefits are not countable under the leveraging incentive

program:

(1) Resources (or portions of resources) obtained, arranged,

provided, contributed, and/or paid for, by a low-income household for

its own benefit, or which a low-income household is responsible for

obtaining or required to provide for its own benefit or for the benefit

of others, in order to receive a benefit of some type;

(2) Resources (or portions of resources) provided, contributed, and/

or paid for by building owners, building managers, and/or home energy

vendors, if the cost of rent, home energy, or other charge(s) to the

recipient were or will be increased, or if other charge(s) to the

recipient were or will be imposed, as a result;

(3) Resources (or portions of resources) directly provided,

contributed, and/or paid for by member(s) of the recipient household's

family (parents, grandparents, great-grandparents, sons, daughters,

grandchildren, great-grandchildren, brothers, sisters, aunts, uncles,

first cousins, nieces, and nephews, and their spouses), regardless of

whether the family member(s) lived with the household, unless the family

member(s) also provided the same resource to other low-income households

during the base period and did not limit the resource to members of

their own family;

(4) Deferred home energy obligations;

(5) Projected future savings from weatherization;

(6) Delivery, and discounts in the cost of delivery, of fuel,

weatherization materials, and all other items;

(7) Purchase, rental, donation, and loan, and discounts in the cost

of purchase and rental, of: supplies and equipment used to deliver fuel,

weatherization materials, and all other items; and supplies and

equipment used to install and repair weatherization materials and all

other items;

(8) Petroleum violation escrow (oil overcharge) funds that do not

meet the definition in paragraph (b)(4) of this section;

(9) Interest earned/paid on petroleum violation escrow funds that

were distributed to a State or territory by the Department of Energy on

or before October 1, 1990;

(10) Interest earned/paid on Federal funds;

(11) Interest earned/paid on customers' security deposits, utility

deposits, etc., except when forfeited by the customer and used to

provide countable benefits;

(12) Borrowed funds that do not meet the requirements in paragraph

(b)(3) above (including loans made by and/or to low-income households),

interest paid on borrowed funds, and reductions in interest paid on

borrowed funds;

(13) Resources (or portions of resources) for which Federal payment

or reimbursement has been or will be provided/received;

(14) Tax deductions and tax credits received from any unit(s) of

government by donors/contributors of resources for these donations, and

by vendors for providing rate reductions, discounts, waivers, credits,

and/or arrearage forgiveness to or for low-income households, etc.;

(15) Funds and other resources that have been or will be used as

matching or cost sharing for any Federal program;

(16) Leveraged resources counted under any other Federal leveraging

incentive program;

(17) Costs of planning and administration, space costs, and intake

costs;

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(18) Outreach activities, budget counseling, case management, and

energy conservation education;

(19) Training;

(20) Installation, replacement, and repair of lighting fixtures and

light bulbs;

(21) Installation, replacement, and repair of smoke/fire alarms that

are not an integral part, and necessary for safe operation, of a home

heating or cooling system installed or repaired as a weatherization

activity;

(22) Asbestos removal that is not an integral part of, and necessary

to carry out, weatherization to help low-income households meet the

costs of home energy;

(23) Paid services where payment is not made from countable

leveraged resources, unless these services are donated as a countable

in-kind contribution by the employer;

(24) All in-kind contributions except those described in paragraph

(e)(3) of this section; and

(25) All other resources that do not meet the requirements of this

section and of section 2607A of Public Law 97-35 (42 U.S.C. 8626a).

(g) Valuation and documentation of leveraged resources and

offsetting costs.

(1) Leveraged cash resources will be valued at the fair market value

of the benefits they provided to low-income households, as follows.

Payments to or on behalf of low-income households for heating, cooling,

and energy crisis assistance will be valued at their actual amount or

value at the time they were provided. Purchased fuel, weatherization

materials, and other countable tangible items will be valued at their

fair market value (the commonly available household rate or cost in the

local market area) at the time they were purchased. Installation,

replacement, and repair of weatherization materials, and other countable

services, will be valued at rates consistent with those ordinarily paid

for similar work, by persons of similar skill in this work, in the

grantee's or subrecipient's organization in the local area, at the time

these services were provided. If the grantee or subrecipient does not

have employees performing similar work, the rates will be consistent

with those ordinarily paid by other employers for similar work, by

persons of similar skill in this work, in the same labor market, at the

time these services were provided. Fringe benefits and overhead costs

will not be counted.

(2) Home energy discounts, waivers, and credits will be valued at

their actual amount or value.

(3) Donated fuel, donated weatherization materials, and other

countable donated tangible items will be valued at their fair market

value (the commonly available household cost in the local market area)

at the time of donation.

(4) Donated unpaid services, and donated third-party paid services

that are not in the employee's normal line of work, will be valued at

rates consistent with those ordinarily paid for similar work, by persons

of similar skill in this work, in the grantee's or subrecipient's

organization in the local area, at the time these services were

provided. If the grantee or subrecipient does not have employees

performing similar work, the rates will be consistent with those

ordinarily paid by other employers for similar work, by persons of

similar skill in this work, in the same labor market, at the time these

services were provided. Fringe benefits and overhead costs will not be

counted. Donated third-party paid services of employees in their normal

line of work will be valued at the employee's regular rate of pay,

excluding fringe benefits and overhead costs.

(5) Offsetting costs and charges will be valued at their actual

amount or value.

(i) Funds from grantees' regular LIHEAP allotments that are used

specifically to identify, develop, and demonstrate leveraging programs

under section 2607A(c)(2) of Public Law 97-35 (42 U.S.C. 8626a(c)(2))

will be deducted as offsetting costs in the base period in which these

funds are obligated, whether or not there are any resulting leveraged

benefits. Costs incurred from grantees' own funds to identify, develop,

and demonstrate leveraging programs will be deducted in the first base

period in which resulting leveraged benefits are provided to low-income

households. If there is no resulting leveraged benefit from the

expenditure of the grantee's own funds, the grantee's

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expenditure will not be counted or deducted.

(ii) Any costs assessed or charged to low-income households on a

continuing or on-going basis, year after year, specifically to

participate in a counted leveraging program or to receive counted

leveraged resources/benefits will be deducted in the base period these

costs are paid. Any one-time costs or charges to low-income households

specifically to participate in a counted leveraging program or to

receive counted leveraged resources/benefits will be deducted in the

first base period the leveraging program or resource is counted. Such

costs or charges will be subtracted from the gross value of a counted

resource or benefit for low-income households whose benefits are

counted, but not for any households whose benefits are not counted.

(6) Only the amount of the net addition to recipient low-income

households' home energy resources may be counted in the valuation of a

leveraged resource.

(7) Leveraged resources and benefits, and offsetting costs and

charges, will be valued according to the best data available to the

grantee.

(8) Grantees must maintain, or have readily available, records

sufficient to document leveraged resources and benefits, and offsetting

costs and charges, and their valuation. These records must be retained

for three years after the end of the base period whose leveraged

resources and benefits they document.

(h) Leveraging report. (1) In order to qualify for leveraging

incentive funds, each grantee desiring such funds must submit to the

Department a report on the leveraged resources provided to low-income

households during the preceeding base period. These reports must contain

the following information in a format established by the Department.

(i) For each separate leveraged resource, the report must:

(A) Briefly describe the specific leveraged resource and the

specific benefit(s) provided to low-income households by this resource,

and state the source of the resource;

(B) State whether the resource was acquired in cash, as a discount/

waiver, or as an in-kind contribution;

provided to recipients;

(D) State the month(s) and year(s) when the benefit(s) were provided

to recipients;

(E) State the gross dollar value of the countable benefits provided

by the resource as determined in accordance with paragraph (g) of this

section, indicate the source(s) of the data used, and describe how the

grantee quantified the value and calculated the total amount;

(F) State the number of low-income households to whom the benefit(s)

were provided, and state the eligibility standard(s) for the low-income

households to whom the benefit(s) were provided;

(G) Indicate the agency or agencies that administered the resource/

benefit(s); and

(H) Indicate the criterion or criteria for leveraged resources in

paragraph (d)(2) of this section that the resource/benefits meet, and

for criteria in paragraphs (d)(2)(i) and (d)(2)(iii) of this section,

explain how resources/benefits valued at $5,000 or more meet the

criterion or criteria.

(ii) State the total gross dollar value of the countable leveraged

resources and benefits provided to low-income households during the base

period (the sum of the amounts listed pursuant to paragraph (h)(1)(i)(E)

of this section).

(iii) State in dollars any costs incurred by the grantee to leverage

resources, and any costs and charges imposed on low-income households to

participate in a counted leveraging program or to receive counted

leveraged benefits, as determined in accordance with paragraph (g)(5) of

this section. Also state the amount of the grantee's regular LIHEAP

allotment that the grantee used during the base period specifically to

identify, develop, and demonstrate leveraging programs under section

2607A(c)(2) of Public Law 97-35 (42 U.S.C. 8626a(c)(2)).

(iv) State the net dollar value of the countable leveraged resources

and benefits for the base period. (Subtract the amounts in paragraph

(h)(1)(iii) of this

[[Page 506]]

section from the amount in paragraph (h)(1)(ii) of this section.)

(2) Leveraging reports must be postmarked or hand-delivered not

later than November 30 of the fiscal year for which leveraging incentive

funds are requested.

(3) The Department may require submission of additional

documentation and/or clarification as it determines necessary to verify

information in a grantee's leveraging report, to determine whether a

leveraged resource is countable, and/or to determine the net valuation

of a resource. In such cases, the Department will set a date by which it

must receive information sufficient to document countability and/or

valuation. In such cases, if the Department does not receive information

that it considers sufficient to document countability and/or valuation

by the date it has set, then the Department will not count the resource

(or portion of resource) in question.

(i) Determination of grantee shares of leveraging incentive funds.

Allocation of leveraging incentive funds to grantees will be computed

according to a formula using the following factors and weights:

(1) Fifty (50) percent based on the final net value of countable

leveraged resources provided to low-income households during the base

period by a grantee relative to its net Federal allotment of funds

allocated under section 2602(b) of Public Law 97-35 (42 U.S.C. 8621(b))

during the base period, as a proportion of the final net value of the

countable leveraged resources provided by all grantees during the base

period relative to their net Federal allotment of funds allocated under

that section during the base period; and

(2) Fifty (50) percent based on the final net value of countable

leveraged resources provided to low-income households during the base

period by a grantee as a proportion of the total final net value of the

countable leveraged resources provided by all grantees during the base

period; except that: No grantee may receive more than twelve (12.0)

percent of the total amount of leveraging incentive funds available for

distribution to grantees in any award period; and no grantee may receive

more than the smaller of its net Federal allotment of funds allocated

under section 2602(b) of Public Law 97-35 (42 U.S.C. 8621(b)) during the

base period, or two times (double) the final net value of its countable

leveraged resources for the base period. The calculations will be based

on data contained in the leveraging reports submitted by grantees under

paragraph (h) of this section as approved by the Department, and

allocation data developed by the Department.

(j) Uses of leveraging incentive funds.

(1) Funds awarded to grantees under the leveraging incentive program

must be used to increase or maintain heating, cooling, energy crisis,

and/or weatherization benefits through (that is, within and as a part

of) the grantee's LIHEAP program. These funds can be used for

weatherization without regard to the weatherization maximum in section

2605(k) of Public Law 97-35 (42 U.S.C. 8624(k)). However, they cannot be

counted in the base for calculation of the weatherization maximum for

regular LIHEAP funds authorized under section 2602(b) of Public Law 97-

35 (42 U.S.C. 8621(b)). Leveraging incentive funds cannot be used for

costs of planning and administration. However, in either the award

period or the fiscal year following the award period, they can be

counted in the base for calculation of maximum grantee planning and

administrative costs under section 2605(b)(9) of Public Law 97-35 (42

U.S.C. 8624(b)(9)). They cannot be counted in the base for calculation

of maximum carryover of regular LIHEAP funds authorized under section

2602(b) of Public Law 97-35 (42 U.S.C. 8621(b)).

(2) Grantees must include the uses of leveraging incentive funds in

their LIHEAP plans (referred to in section 2605(c)(1)(A) of Public Law

97-35) (42 U.S.C. 8624(c)(1)(A)) for the fiscal year in which the

grantee obligates these funds. Grantees must document uses of leveraging

incentive funds in the same way they document uses of regular LIHEAP

funds authorized under section 2602(b) of Public Law 97-35 (42 U.S.C.

8621(b)). Leveraging incentive funds are subject to the same audit

requirements as regular LIHEAP funds.

(k) Period of obligation for leveraging incentive funds. Leveraging

incentive

[[Page 507]]

funds are available for obligation during both the award period and the

fiscal year following the award period, without regard to limitations on

carryover of funds in section 2607(b)(2)(B) of Public Law 97-35 (42

U.S.C. 8626(b)(2)(B)). Any leveraging incentive funds not obligated for

allowable purposes by the end of this period must be returned to the

Department.

[60 FR 21359, May 1, 1995; 60 FR 36334, July 14, 1995]

Sec. 96.88 Administrative costs.

(a) Costs of planning and administration. Any expenditure for

governmental functions normally associated with administration of a

public assistance program must be included in determining administrative

costs subject to the statutory limitation on administrative costs,

regardless of whether the expenditure is incurred by the State, a

subrecipient, a grantee, or a contractor of the State.

(b) Administrative costs for territories and Indian tribes. For

Indian tribes, tribal organizations and territories with allotments of

$20,000 or less, the limitation on the cost of planning and

administering the low-income home energy assistance program shall be 20

percent of funds payable and not transferred for use under another block

grant. For tribes, tribal organizations and territories with allotments

over $20,000, the limitation on the cost of planning and administration

shall be $4,000 plus 10% of the amount of funds payable (and not

transferred for use under another block grant) that exceeds $20,000.

[52 FR 37967, Oct. 13, 1987]

Sec. 96.89 Exemption from standards for providing energy crisis

intervention assistance.

The performance standards in section 2604(c) of Pub. L. 97-35 (42

U.S.C. 8623), as amended by section 502(a) of the Human Services

Reauthorization Act of 1986 (Pub. L. 99-425)--concerning provision of

energy crisis assistance within specified time limits, acceptance of

applications for energy crisis benefits at geographically accessible

sites, and provision to physically infirm low-income persons of the

means to apply for energy crisis benefits at their residences or to

travel to application sites--shall not apply under the conditions

described in this section.

(a) These standards shall not apply to a program in a geographical

area affected by (1) a major disaster or emergency designated by the

President under the Disaster Relief Act of 1974, or (2) a natural

disaster identified by the chief executive officer of a State,

territory, or direct-grant Indian tribe or tribal organization, if the

Secretary (or his or her designee) determines that the disaster or

emergency makes compliance with the standards impracticable.

(b) The Secretary's determination will be made after communication

by the chief executive officer (or his or her designee) to the Secretary

(or his or her designee) of the following:

(1) Information substantiating the existence of a disaster or

emergency;

(2) Information substantiating the impracticability of compliance

with the standards, including a description of the specific conditions

caused by the disaster or emergency which make compliance impracticable;

and

(3) Information on the expected duration of the conditions that make

compliance impracticable.

If the communication is made by the chief executive officer's designee

and the Department does not have on file written evidence of the

designation, the communication must also include:

(4) Evidence of the appropriate delegation of authority.

oral or written. If oral, it must be followed as soon as possible by

written communication confirming the information provided orally. The

Secretary's exemption initially may be oral. If so, the Secretary will

provide written confirmation of the exemption as soon as possible after

receipt of appropriate written communication from the chief executive

officer.

(d) Exemption from the standards shall apply from the moment of the

Secretary's determination, only in the geographical area affected by the

disaster or emergency, and only for so long as the Secretary determines

that the

[[Page 508]]

disaster or emergency makes compliance with the standards impracticable.

[53 FR 6827, Mar. 3, 1988]

Subpart I--Community Services Block Grants | Top of Page

Sec. 96.90 Scope.

This subpart applies to the community services block grant.

Sec. 96.91 Audit requirement.

Pursuant to section 1745(b) of the Reconciliation Act (31 U.S.C.

1243 note) an audit is required with respect to the 2-year period

beginning on October 1, 1981, and with respect to each 2-year period

thereafter. In its application for funds, a State may modify the

assurance required by section 675(c)(9) of the Reconciliation Act (42

U.S.C. 9904(c)(9)) to conform to the requirements of section 1745(b).

Sec. 96.92 Termination of funding.

Where a State determines pursuant to section 675(c)(11) of the

Community Services Block Grant Act that it will terminate present or

future funding of any community action agency or migrant and seasonal

farmworker organization which received funding in the previous fiscal

year, the State must provide the organization with notice and an

opportunity for hearing on the record prior to terminating funding. If a

review by the Secretary of the State's final decision to terminate

funding is requested pursuant to section 676A, the request must be made

in writing, within 30 days of notification by the State of its final

decision to terminate funding. The Department will confirm or reject the

State's finding of cause, normally within 90 days. If a request for a

review has been made, the State may not discontinue present or future

funding until the Department confirms the State's finding of cause. If

no request for a review is made within the 30-day limit, the State's

decision will be effective at the expiration of that time.

[52 FR 37968, Oct. 13, 1987]

Subpart J--Primary Care Block Grants | Top of Page

Sec. 96.100 Scope.

This subpart applies to the primary care block grant.

Sec. 96.101 Review of a State decision to discontinue funding of a

community health center.

Where a State determines for FY 1983, pursuant to section 1926(a)(2)

of the Public Health Service Act (42 U.S.C. 300y-5(a)(2)), that a

community health center does not meet the criteria for continued funding

set forth in section 330 of the Public Health Service Act (42 U.S.C.

254c), the State must advise the Department of the decision and the

basis upon which it was made. The Department will permit the center 30

days to respond to the State's determination. After evaluating the

reasons advanced by the State and the center, the Department will

determine within 30 days after the center's response is due whether the

center meets the requirements for receiving a grant under the Public

Health Service Act. The State may not discontinue funding the center

until the Department has completed its review.

[47 FR 29486, July 6, 1982; 47 FR 43062, Sept. 30, 1982]

Sec. 96.102 Carryover of unobligated funds.

In implementing section 1925(a)(2) of the Public Health Service Act

(42 U.S.C. 300y-4(a)(2)), the Secretary will determine that there is

good cause for funds remaining unobligated if planned obligations could

not be carried out because of a bona fide reason or if the State has

determined that program objectives would be better served by deferring

obligation of the funds to the following year.

Subpart K--Transition Provisions | Top of Page

Sec. 96.110 Scope.

Except as otherwise stated, this subpart applies to the community

services, preventive health and health services, alcohol and drug abuse

and mental health services, and maternal and child health services block

grants for

[[Page 509]]

the fiscal year beginning October 1, 1981. The social services block

grant and the low-income home energy assistance program are not subject

to the provisions of this subpart.

Sec. 96.111 Continuation of pre-existing regulations.

The regulations previously issued by the Department and the

Community Services Administration to govern administration of the

programs replaced by the block grants specified in Sec. 96.1 of this

part shall continue in effect until revised to govern administration of

those programs by the Department in those circumstances in which States

have not qualified for block grants.

Sec. 96.112 Community services block grant.

(a) For the fiscal year beginning October 1, 1981, only, a State may

choose to operate programs under the community services block grant or,

instead, have the Secretary operate the programs replaced by the block

grant. If a State does not notify the Secretary in accordance with the

statutory deadlines each quarter, it will be deemed to have requested

the Secretary to operate the programs for the following quarter.

(b) A State or territory that does not have any eligible entity'' as

that term is defined in section 673(1) of the Reconciliation Act (42

U.S.C. 9902), as amended by section 17 of Pub. L. 97-115 (December 19,

1981), or any other entity for which funding is allowed under section

138 of Pub. L. 97-276, may distribute its allotment for the Fiscal Year

beginning October 1, 1982 according to section 675(c)(2)(A)(ii) of the

Reconciliation Act.

the Department's administration costs will be deducted from the State's

allotment. The Department's total administration costs for making grants

during fiscal year 1982 and for any monitoring of these grants in fiscal

year 1983 will be deducted from each State's allotment in proportion to

the total amount of grants awarded from the allotment during the period

of administration by the Department (but not to exceed 5 percent of the

State's fiscal year 1982 allotment).

[47 FR 29486, July 6, 1982, as amended at 48 FR 9271, Mar. 4, 1983]

Subpart L--Substance Abuse Prevention and Treatment Block Grant | Top of Page

Authority: 42 U.S.C. 300x-21 to 300x-35 and 300x-51 to 300x-64.

Source: 58 FR 17070, Mar. 31, 1993, unless otherwise noted.

Sec. 96.120 Scope.

This subpart applies to the Substance Abuse Prevention and Treatment

Block Grant administered by the Substance Abuse and Mental Health

Services Administration. 45 C.F.R. Part 96, subparts A through F, are

applicable to this subpart to the extent that those subparts are

consistent with subpart L. To the extent subparts A through F are

inconsistent with subpart L, the provisions of subpart L are applicable.

Sec. 96.121 Definitions.

Block Grant means the Substance Abuse Prevention and Treatment Block

Grant, 42 U.S.C. 300x-21, et seq.

Early Intervention Services Relating to HIV means:

(1) appropriate pretest counseling for HIV and AIDS;

(2) testing individuals with respect to such disease, including

tests to confirm the presence of the disease, tests to diagnose the

extent of the deficiency in the immune system, and tests to provide

information on appropriate therapeutic measures for preventing and

treating the deterioration of the immune system and for preventing and

treating conditions arising from the disease;

(3) appropriate post-test counseling; and

(4) providing the therapeutic measures described in Paragraph (2) of

this definition.

Fiscal Year, unless provided otherwise, means the Federal fiscal

year.

Interim Services or Interim Substance Abuse Services means services

that are provided until an individual is admitted to a substance abuse

treatment program. The purposes of the services are to reduce the

adverse health effects

[[Page 510]]

of such abuse, promote the health of the individual, and reduce the risk

of transmission of disease. At a minimum, interim services include

counseling and education about HIV and tuberculosis (TB), about the

risks of needle-sharing, the risks of transmission to sexual partners

and infants, and about steps that can be taken to ensure that HIV and TB

transmission does not occur, as well as referral for HIV or TB treatment

services if necessary. For pregnant women, interim services also include

counseling on the effects of alcohol and drug use on the fetus, as well

as referral for prenatal care.

Primary Prevention Programs are those directed at individuals who

have not been determined to require treatment for substance abuse. Such

programs are aimed at educating and counseling individuals on such abuse

and providing for activities to reduce the risk of such abuse.

Principal Agency is the single State agency responsible for

planning, carrying out and evaluating activities to prevent and treat

substance abuse and related activities.

Rural Area The definition of a rural area within a State shall be

the latest definition of the Bureau of the Census, Department of

Commerce.

Secretary is the Secretary of the United States Department of Health

and Human Services or the Secretary's designee.

State, unless provided otherwise, includes the 50 States, the

District of Columbia, the Commonwealth of Puerto Rico, the U.S. Virgin

Islands, Guam, America Samoa, the Commonwealth of the Northern Mariana

Islands, Palau, Micronesia, and the Marshall Islands.

State Medical Director for Substance Abuse Services is a licensed

physician with the knowledge, skill and ability to address the multiple

physical and psychological problems associated with substance abuse, and

who provides the principle agency with clinical consultation and

direction regarding effective substance abuse treatment, effective

primary medical care, effective infection control and public health and

quality assurance.

Substance Abuse is defined to include the abuse or illicit use of

alcohol or other drugs.

Tuberculosis Services means:

(1) Counseling the individual with respect to tuberculosis;

(2) Testing to determine whether the individual has been infected

with mycobacteria tuberculosis to determine the appropriate form of

treatment for the individual; and

(3) Providing for or referring the individuals infected by

mycobacteria tuberculosis for appropriate medical evaluation and

treatment.

Sec. 96.122 Application content and procedures.

(a) For each fiscal year, beginning with fiscal year 1993, the State

shall submit an application to such address as the Secretary determines

is appropriate.

(b) For fiscal year 1993, applicants must submit an application

containing information which conforms to the assurances listed under

Sec. 96.123, the report as provided in Sec. 96.122(f), and the State

plan as provided in Sec. 96.122(g).

application forms prescribed by the granting agency with the approval of

the Office of Management and Budget (OMB) under the Paperwork Reduction

Act of 1980. Applicants must follow all applicable instructions that

bear OMB clearance numbers. The application will require the State to

submit the assurances listed under Sec. 96.123, the report as provided

in Sec. 96.122(f), and the State Plan as provided in Sec. 96.122(g).

(d) The application (in substantial compliance with the statutory

and regulatory provisions for the Block Grant) shall be submitted for

fiscal year 1993 no later than ninety days after publication of these

regulations, and, for subsequent years, no later than March 31 of the

fiscal year for which the State is applying.

(e) The funding agreements and assurances in the application shall

be made through certification by the State's chief executive officer

personally, or by an individual authorized to make such certification on

behalf of the chief executive officer. When a delegation has occurred, a

copy of the current delegation of authority must be submitted with the

application.

[[Page 511]]

(f) A report shall be submitted annually with the application and

State Plan. Among other things, the report must contain information as

determined by the Secretary to be necessary to determine the purposes

and the activities of the State, for which the Block Grant was expended.

The report shall include (but is not limited to) the following:

(1) For the fiscal year three years prior to the fiscal year for

which the State is applying for funds:

(i) A statement of whether the State exercised its discretion under

applicable law to transfer Block Grant funds from substance abuse

services to mental health services or vice versa, and a description of

the transfers which were made;

(ii) A description of the progress made by the State in meeting the

prevention and treatment goals, objectives and activities submitted in

the application for the relevant year;

(iii) A description of the amounts expended under the Block Grant by

the State agency, by activity;

(iv) A description of the amounts expended on primary prevention and

early intervention activities (if reporting on fiscal years 1990, 1991,

and 1992 only) and for primary prevention activities (if reporting on

fiscal years 1993 and subsequent years);

(v) A description of the amounts expended for activities relating to

substance abuse such as planning, coordination, needs assessment,

quality assurance, training of counselors, program development, research

and development and the development of information systems;

(vi) A description of the entities, their location, and the total

amount the entity received from Block Grant funds with a description of

the activities undertaken by the entity;

(vii) A description of the use of the State's revolving funds for

establishment of group homes for recovering substance abusers, as

provided by Sec. 96.129, including the amount available in the fund

throughout the fiscal year and the number and amount of loans made that

fiscal year;

(viii) A detailed description of the State's programs for women and,

in particular for pregnant women and women with dependent children, if

reporting on fiscal years 1990, 1991, or 1992; and pregnant women or

women with dependent children for fiscal year 1993 and subsequent fiscal

years;

(ix) A detailed description of the State's programs for intravenous

drug users; and

(x) For applications for fiscal year 1996 and subsequent fiscal

years, a description of the State's expenditures for tuberculosis

services and, if a designated State, early intervention services for

HIV.

(2) For the most recent 12 month State expenditure period for which

expenditure information is complete:

(i) A description of the amounts expended by the principal agency

for substance abuse prevention and treatment activities, by activity and

source of funds;

(ii) A description of substance abuse funding by other State

agencies and offices, by activity and source of funds when available;

and

(iii) A description of the types and amounts of substance abuse

services purchased by the principal agency.

(3) For the fiscal year two years prior to the fiscal year for which

the State is applying for funds:

(i) A description of the amounts obligated under the Block Grant by

the principal agency, by activity;

(ii) A description of the amounts obligated for primary prevention

and early intervention (if reporting on fiscal years 1990, 1991, and

1992 activities only) and primary prevention activities (if reporting on

fiscal years 1993 and subsequent year activities);

(iii) A description of the entities to which Block Grant funds were

obligated;

(iv) A description of the State's policies, procedures and laws

regarding substance abuse prevention, especially the use of alcohol and

tobacco products by minors;

(v) For applications for fiscal year 1995 and all subsequent fiscal

years, a description of the State's procedures and activities undertaken

to comply with the requirement to conduct independent peer review as

provided by Sec. 96.136;

(vi) For applications for fiscal year 1995 and all subsequent fiscal

years, a

[[Page 512]]

description of the State's procedures and activities undertaken to

comply with the requirement to develop capacity management and waiting

list systems, as provided by Secs. 96.126 and 96.131, as well as an

evaluation summary of these activities; and

(vii) For applications for fiscal year 1995 and subsequent fiscal

years, a description of the strategies used for monitoring program

compliance with Sec. 96.126(f), Sec. 96.127(b), and Sec. 96.131(f), as

well as a description of the problems identified and the corrective

actions taken.

(4) The aggregate State expenditures by the principle agency for

authorized activities for the two State fiscal years preceding the

fiscal year for which the State is applying for a grant, pursuant to

Sec. 96.134(d).

(5) For the previous fiscal year:

(i) A description of the State's progress in meeting the goals,

objectives and activities included in the previous year's application,

and a brief description of the recipients of the Block Grant funds;

(ii) A description of the methods used to calculate the following:

(A) The base for services to pregnant women and women with dependent

children as required by Sec. 96.124;

(B) The base for tuberculosis services as required for Sec. 96.127;

and

services as required by Sec. 96.128;

(iii) For applications for fiscal years 1994 and 1995 only, a

description of the State's progress in the development of protocols for

and the implementation of tuberculosis services, and, if a designated

State, early intervention services for HIV; and

(iv) For applications for fiscal year 1994 only, a description of

the States progress in the development, implementation, and utilization

of capacity management and waiting list systems.

(6) For the first applicable fiscal year for which the State is

applying for a grant, a copy of the statute enacting the law as

described in Sec. 96.130(b) and, if the State desires, a description of

the activities undertaken during the previous fiscal year to enforce any

law against the sale or distribution of tobacco products to minors that

may have existed; and for subsequent fiscal years for which the State is

applying for a grant, the annual report as required by Sec. 96.130(e)

and any amendment to the law described in Sec. 96.130(b).

(7) In addition to the information above, any information that the

Secretary may, from time to time, require, consistent with the Paperwork

Reduction Act.

(g) For each fiscal year, beginning fiscal year 1993, the State Plan

shall be submitted to the Secretary and shall include the following:

(1) For fiscal years 1993 and 1994, a statement on whether the

Governor intends to exercise discretion under applicable law to transfer

Block Grant funds from the Substance Abuse Prevention and Treatment

Block Grant allotment under section 1921 of the PHS Act to the Community

Mental Health Services Block Grant allotment under section 1911 of the

PHS Act or vice versa and a description of the planned transfer;

(2) A budget of expenditures which provides an estimate of the use

and distribution of Block Grant and other funds to be spent by the

agency administering the Block Grant during the period covered by the

application, by activity and source of funds;

(3) A description of how the State carries out planning, including

how the State identifies substate areas with the greatest need, what

process the State uses to facilitate public comment on the plan, and

what criteria the State uses in deciding how to allocate Block Grant

funds;

(4) A detailed description of the State procedures to monitor

programs that reach 90% capacity pursuant to Sec. 96.126(a);

(5) A detailed description of the State procedures to implement the

14/120 day requirement provided by Sec. 96.126(b) as well as the interim

services to be provided and a description of the strategies to be used

in monitoring program compliance in accordance with Sec. 96.126(f);

(6) A full description of the outreach efforts States will require

entities which receive funds to provide pursuant to Sec. 96.126(e);

(7) A detailed description of the State procedures implementing TB

services

[[Page 513]]

pursuant to Sec. 96.127, and a description of the strategies to be used

in monitoring program compliance in accordance with Sec. 96.127(b);

(8) A detailed description of the State's procedures implementing

HIV services pursuant to Sec. 96.128, if considered a designated State;

(9) A description of estimates of non-Federal dollars to be spent

for early intervention services relating to HIV, if a designated State,

and tuberculosis services for the fiscal year covered by the

application, as well as the amounts actually spent for such services for

the two previous fiscal years;

(10) For fiscal year 1993, a detailed description of the State's

revolving fund for establishment of group homes for recovering substance

abusers pursuant to Sec. 96.129 and, for subsequent years, any revisions

to the program;

(11) A detailed description of State procedures implementing

Sec. 96.131 relating to treatment services for pregnant women;

(12) Unless waived, a description on how the State will improve the

process for referrals for treatment, will ensure that continuing

education is provided, and will coordinate various activities and

services as provided by Sec. 96.132;

(13) Statewide assessment of needs as provided in Sec. 96.133;

(14) The aggregate State dollar projected expenditures by the

principal agency of a State for authorized activities for the fiscal

year for which the Block Grant is to be expended, as well as the

aggregate obligations or expenditures, when available, for authorized

activities for the two years prior to such fiscal year as required by

Sec. 96.134;

(15) Unless waived, a description of the services and activities to

be provided by the State with Block Grant funds consistent with

Sec. 96.124 for allocations to be spent on services to pregnant women

and women with dependent children, alcohol and other drug treatment and

prevention, including primary prevention, and any other requirement;

(16) A description of the State procedures to implement

Sec. 96.132(e) regarding inappropriate disclosure of patient records;

(17) A description of the amounts to be spent for primary prevention

in accordance with Sec. 96.125;

(18) A description of the amounts to be spent on activities relating

to substance abuse such as planning coordination, needs assessment,

quality assurance, training of counselors, program development, research

and development and the development of information systems;

(19) A description of the State plans regarding purchasing substance

abuse services;

(20) A description of how the State intends to monitor and evaluate

the performance of substance abuse service providers in accordance with

Sec. 96.136;

(21) A description of the strategies to be utilized by the State for

enforcing the law required by section 96.130(b);

(22) A description of the State's overall goals for Block Grant

expenditures, specific objectives under each goal, and the activities

the State will carry out to achieve these objectives; and

(23) Such other information as the Secretary may, from time to time,

require, consistent with the Paperwork Reduction Act.

(h) The Secretary will approve an application which includes the

assurances, the State plan and the report that satisfies the

requirements of this part and the relevant sections of the PHS Act. As

indicated above, the State is required to provide descriptions of the

State's procedures to implement the provisions of the Act and the

regulations. Unless provided otherwise by these regulations, the

Secretary will approve procedures which are provided as examples in the

regulations, or the State may submit other procedures which the

Secretary determines to reasonably implement the requirements of the

Act.

[58 FR 17070, Mar. 31, 1993, as amended at 61 FR 1508, Jan. 19, 1996]

Sec. 96.123 Assurances.

(a) The application must include assurances that:

[[Page 514]]

(1) the State will expend the Block Grant in accordance with the

percentage to be allocated to treatment, prevention, and other

activities as prescribed by law and, also, for the purposes prescribed

by law;

(2) The activities relating to intravenous drug use pursuant to

Sec. 96.126 will be carried out;

(3) The TB services and referral will be carried out pursuant to

Sec. 96.127, as well as the early intervention services for HIV provided

for in Sec. 96.128, if a designated State;

(4) The revolving funds to establish group homes for recovering

substance abusers is in place consistent with the provisions of

Sec. 96.129 and the loans will be made and used as provided for by law;

(5) The State has a law in effect making it illegal to sell or

distribute tobacco products to minors as provided in Sec. 96.130(b),

will conduct annual, unannounced inspections as prescribed in

Sec. 96.130, and will enforce such law in a manner that can reasonably

be expected to reduce the extent to which tobacco products are available

to individuals under the age of 18;

(6) Pregnant women are provided preference in admission to treatment

centers as provided by Sec. 96.131, and are provided interim services as

necessary and as required by law;

(7) The State will improve the process in the State for referrals of

individuals to the treatment modality that is most appropriate for the

individuals, will ensure that continuing education is provided to

employees of any funded entity providing prevention activities or

treatment services, and will coordinate prevention activities and

treatment services with the provision of other appropriate services as

provided by Sec. 96.132;

(8) The State will submit an assessment of need as required by

section 96.133;

(9) The State will for such year maintain aggregate State

expenditures by the principal agency of a State for authorized

activities at a level that is not less than the average level of such

expenditures maintained by the State for the 2-year period preceding the

fiscal year for which the State is applying for the grant as provided by

Sec. 96.134;

(10) The Block Grant will not be used to supplant State funding of

alcohol and other drug prevention and treatment programs;

(11) For purposes of maintenance of effort pursuant to

Secs. 96.127(f), 96.128(f), and 96.134, the State will calculate the

base using Generally Accepted Accounting Principles and the composition

of the base will be applied consistently from year to year;

(12) The State will for the fiscal year for which the grant is

provided comply with the restrictions on the expenditure of Block Grant

funds as provided by Sec. 96.135;

(13) The State will make the State Plan public within the State in

such manner as to facilitate comment from any person (including any

Federal or other public agency) during the development of the State Plan

and after the submission of the State Plan (including any revisions) to

the Secretary as provided by Sec. 1941 of the PHS Act;

(14) The State will for the fiscal year for which the grant is

provided, provide for independent peer review to assess the quality,

appropriateness, and efficacy of treatment services provided in the

State to individuals under the program involved as required by

Sec. 96.136;

(15) The State has in effect a system to protect from inappropriate

disclosure patient records maintained by the State in connection with an

entity which is receiving amounts from the grant;

(16) The State will comply with chapter 75 of title 31, United

States Code, pertaining to audits; and

(17) The State will abide by all applicable Federal laws and

regulations, including those relating to lobbying (45 CFR Part 93),

drug-free workplace (45 CFR 76.600), discrimination (PHS Act Sec. 1947),

false statements or failure to disclose certain events (PHS Act Sec.

1946), and, as to the State of Hawaii, services for Native Hawaiians

(PHS Act Sec. 1953).

[58 FR 17070, Mar. 31, 1993, as amended at 61 FR 1508, Jan. 19, 1996]

Sec. 96.124 Certain allocations.

(a) States are required to expend the Block Grant on various

activities in certain proportions. Specifically, as to

[[Page 515]]

treatment and prevention, the State shall expend the grant as follows:

(1) not less than 35 percent for prevention and treatment activities

regarding alcohol; and

(2) not less than 35 percent for prevention and treatment activities

regarding other drugs.

(b) The States are also to expend the Block Grant on primary

prevention programs as follows:

(1) Consistent with Sec. 96.125, the State shall expend not less

than 20 percent for programs for individuals who do not require

treatment for substance abuse, which programs--

(i) educate and counsel the individuals on such abuse; and

(ii) provide for activities to reduce the risk of such abuse by the

individuals;

(2) The State shall, in carrying out paragraph (b)(1) of this

section--

(i) give priority to programs for populations that are at risk of

developing a pattern of such abuse; and

(ii) ensure that programs receiving priority under paragraph

(b)(2)(i) of this section develop community-based strategies for

prevention of such abuse, including strategies to discourage the use of

alcoholic beverages and tobacco products by individuals to whom it is

unlawful to sell or distribute such beverages or products.

expend the Block Grant on women services as follows:

(1) The State for fiscal year 1993 shall expend not less than five

percent of the grant to increase (relative to fiscal year 1992) the

availability of treatment services designed for pregnant women and women

with dependent children (either by establishing new programs or

expanding the capacity of existing programs). The base for fiscal year

1993 shall be an amount equal to the fiscal year 1992 alcohol and drug

services Block Grant expenditures and State expenditures for pregnant

women and women with dependent children as described in paragraph (e) of

this section, and to this base shall be added at least 5 percent of the

1993 Block Grant allotment. The base shall be calculated using Generally

Accepted Accounting Principles and the composition of the base shall be

applied consistently from year to year. States shall report the methods

used to calculate their base for fiscal year 1992 expenditures on

treatment for pregnant women and women with dependent children.

(2) For fiscal year 1994, the State shall, consistent with paragraph

(c)(1) of this section, expend not less than five percent of the grant

to increase (relative to fiscal year 1993) the availability of such

services to pregnant women and women with dependent children.

(3) For grants beyond fiscal year 1994, the States shall expend no

less than an amount equal to the amount expended by the State for fiscal

year 1994.

(d) Upon the request of a State, the Secretary may waive all or part

of the requirement in paragraph (c) of this section if the Secretary

determines that the State is providing an adequate level of services for

this population. In determining whether an adequate level of services is

being provided the Secretary will review the extent to which such

individuals are receiving services. This determination may be supported

by a combination of criminal justice data, the National Drug and

Treatment Units Survey, statewide needs assessment data, waiting list

data, welfare department data, including medicaid expenditures, or other

State statistical data that are systematically collected. The Secretary

will also consider the extent to which the State offers the minimum

services required under Sec. 96.124(e). The Secretary shall approve or

deny a request for a waiver not later than 120 days after the date on

which the request is made. Any waiver provided by the Secretary shall be

applicable only to the fiscal year involved.

(e) With respect to paragraph (c) of this section, the amount set

aside for such services shall be expended on individuals who have no

other financial means of obtaining such services as provided in

Sec. 96.137. All programs providing such services will treat the family

as a unit and therefore will admit both women and their children into

treatment services, if appropriate. The State shall ensure that, at a

minimum, treatment programs receiving funding for such services also

provide or arrange for the provision of the following

[[Page 516]]

services to pregnant women and women with dependent children, including

women who are attempting to regain custody of their children:

(1) primary medical care for women, including referral for prenatal

care and, while the women are receiving such services, child care;

(2) primary pediatric care, including immunization, for their

children;

(3) gender specific substance abuse treatment and other therapeutic

interventions for women which may address issues of relationships,

sexual and physical abuse and parenting, and child care while the women

are receiving these services;

(4) therapeutic interventions for children in custody of women in

treatment which may, among other things, address their developmental

needs, their issues of sexual and physical abuse, and neglect; and

(5) sufficient case management and transportation to ensure that

women and their children have access to services provided by paragraphs

(e) (1) through (4) of this section.

(f) Procedures for the implementation of paragraphs (c) and (e) of

this section will be developed in consultation with the State Medical

Director for Substance Abuse Services.

Sec. 96.125 Primary prevention.

(a) For purposes of Sec. 96.124, each State/Territory shall develop

and implement a comprehensive prevention program which includes a broad

array of prevention strategies directed at individuals not identified to

be in need of treatment. The comprehensive program shall be provided

either directly or through one or more public or nonprofit private

entities. The comprehensive primary prevention program shall include

activities and services provided in a variety of settings for both the

general population, as well as targeting sub-groups who are at high risk

for substance abuse.

(b) In implementing the prevention program the State shall use a

variety of strategies, as appropriate for each target group, including

but not limited to the following:

(1) Information Dissemination: This strategy provides awareness and

knowledge of the nature and extent of alcohol, tobacco and drug use,

abuse and addiction and their effects on individuals, families and

communities. It also provides knowledge and awareness of available

prevention programs and services. Information dissemination is

characterized by one-way communication from the source to the audience,

with limited contact between the two. Examples of activities conducted

and methods used for this strategy include (but are not limited to) the

following:

(i) Clearinghouse/information resource center(s);

(ii) Resource directories;

(iii) Media campaigns;

(iv) Brochures;

(v) Radio/TV public service announcements;

(vi) Speaking engagements;

(vii) Health fairs/health promotion; and

(viii) Information lines.

(2) Education: This strategy involves two-way communication and is

distinguished from the Information Dissemination strategy by the fact

that interaction between the educator/facilitator and the participants

is the basis of its activities. Activities under this strategy aim to

affect critical life and social skills, including decision-making,

refusal skills, critical analysis (e.g. of media messages) and

systematic judgment abilities. Examples of activities conducted and

methods used for this strategy include (but are not limited to) the

following:

(i) Classroom and/or small group sessions (all ages);

(ii) Parenting and family management classes;

(iii) Peer leader/helper programs;

(iv) Education programs for youth groups; and

(v) Children of substance abusers groups.

(3) Alternatives: This strategy provides for the participation of

target populations in activities that exclude alcohol, tobacco and other

drug use. The assumption is that constructive and healthy activities

offset the attraction to, or otherwise meet the needs usually filled by

alcohol, tobacco and other drugs and would, therefore, minimize or

obviate resort to the latter. Examples of activities conducted

[[Page 517]]

and methods used for this strategy include (but are not limited to) the

following:

(i) Drug free dances and parties;

(ii) Youth/adult leadership activities;

(iii) Community drop-in centers; and

(iv) Community service activities.

(4) Problem Identification and Referral: This strategy aims at

identification of those who have indulged in illegal/age-inappropriate

use of tobacco or alcohol and those individuals who have indulged in the

first use of illicit drugs in order to assess if their behavior can be

reversed through education. It should be noted, however, that this

strategy does not include any activity designed to determine if a person

is in need of treatment. Examples of activities conducted and methods

used for this strategy include (but are not limited to) the following:

(i) Employee assistance programs;

(ii) Student assistance programs; and

(iii) Driving while under the influence/driving while intoxicated

education programs.

(5) Community-Based Process: This strategy aims to enhance the

ability of the community to more effectively provide prevention and

treatment services for alcohol, tobacco and drug abuse disorders.

Activities in this strategy include organizing, planning, enhancing

efficiency and effectiveness of services implementation, inter-agency

collaboration, coalition building and networking. Examples of activities

conducted and methods used for this strategy include (but are not

limited to) the following:

(i) Community and volunteer training, e.g., neighborhood action

training, training of key people in the system, staff/officials

training;

(ii) Systematic planning;

(iii) Multi-agency coordination and collaboration;

(iv) Accessing services and funding; and

(v) Community team-building.

(6) Environmental: This strategy establishes or changes written and

unwritten community standards, codes and attitudes, thereby influencing

incidence and prevalence of the abuse of alcohol, tobacco and other

drugs used in the general population. This strategy is divided into two

subcategories to permit distinction between activities which center on

legal and regulatory initiatives and those which relate to the service

and action-oriented initiatives. Examples of activities conducted and

methods used for this strategy shall include (but not be limited to) the

following:

(i) promoting the establishment and review of alcohol, tobacco and drug

use policies in schools;

(ii) technical assistance to communities to maximize local enforcement

procedures governing availability and distribution of alcohol,

tobacco and other drug use;

(iii) modifying alcohol and tobacco advertising practices; and

(iv) product pricing strategies.

Sec. 96.126 Capacity of treatment for intravenous substance abusers.

(a) In order to obtain Block Grant funds, the State must require

programs that receive funding under the grant and that treat individuals

for intravenous substance abuse to provide to the State, upon reaching

90 percent of its capacity to admit individuals to the program, a

notification of that fact within seven days. In carrying out this

section, the State shall establish a capacity management program which

reasonably implements this section--that is, which enables any such

program to readily report to the State when it reaches 90 percent of its

capacity--and which ensures the maintenance of a continually updated

record of all such reports and which makes excess capacity information

available to such programs.

(b) In order to obtain Block Grant funds, the State shall ensure

that each individual who requests and is in need of treatment for

intravenous drug abuse is admitted to a program of such treatment not

later than--

(1) 14 days after making the request for admission to such a

program; or

(2) 120 days after the date of such request, if no such program has

the capacity to admit the individual on the date of such request and if

interim services, including referral for prenatal care, are made

available to the individual not later than 48 hours after such request.

[[Page 518]]

waiting list management program which provides systematic reporting of

treatment demand. The State shall require that any program receiving

funding from the grant, for the purposes of treating injecting drug

abusers, establish a waiting list that includes a unique patient

identifier for each injecting drug abuser seeking treatment including

those receiving interim services, while awaiting admission to such

treatment. For individuals who cannot be placed in comprehensive

treatment within 14 days, the State shall ensure that the program

provide such individuals interim services as defined in Sec. 96.121 and

ensure that the programs develop a mechanism for maintaining contact

with the individuals awaiting admission. The States shall also ensure

that the programs consult the capacity management system as provided in

paragraph (a) of this section so that patients on waiting lists are

admitted at the earliest possible time to a program providing such

treatment within reasonable geographic area.

(d) In carrying out paragraph (b)(2) of this section the State shall

ensure that all individuals who request treatment and who can not be

placed in comprehensive treatment within 14 days, are enrolled in

interim services and those who remain active on a waiting list in

accordance with paragraph (c) of this section, are admitted to a

treatment program within 120 days. If a person cannot be located for

admission into treatment or, if a person refuses treatment, such persons

may be taken off the waiting list and need not be provided treatment

within 120 days. For example, if such persons request treatment later,

and space is not available, they are to be provided interim services,

placed on a waiting list and admitted to a treatment program within 120

days from the latter request.

(e) The State shall require that any entity that receives funding

for treatment services for intravenous drug abuse carry out activities

to encourage individuals in need of such treatment to undergo such

treatment. The States shall require such entities to use outreach models

that are scientifically sound, or if no such models are available which

are applicable to the local situation, to use an approach which

reasonably can be expected to be an effective outreach method. The model

shall require that outreach efforts include the following:

(1) Selecting, training and supervising outreach workers;

(2) Contacting, communicating and following-up with high risk substance

abusers, their associates, and neighborhood residents, within the

constraints of Federal and State confidentiality requirements,

including 42 C.F.R. Part 2;

(3) Promoting awareness among injecting drug abusers about the

relationship between injecting drug abuse and communicable diseases

such as HIV;

(4) Recommend steps that can be taken to ensure that HIV transmission

does not occur; and

(5) Encouraging entry into treatment.

(f) The State shall develop effective strategies for monitoring

programs compliance with this section. States shall report under the

requirements of Sec. 96.122(g) on the specific strategies to be used to

identify compliance problems and corrective actions to be taken to

address those problems.

Sec. 96.127 Requirements regarding tuberculosis.

(a) States shall require any entity receiving amounts from the grant

for operating a program of treatment for substance abuse to follow

procedures developed by the principal agency of a State for substance

abuse, in consultation with the State Medical Director for Substance

Abuse Services, and in cooperation with the State Department of Health/

Tuberculosis Control Officer, which address how the program--

(1) Will, directly or through arrangements with other public or

nonprofit private entities, routinely make available tuberculosis

services as defined in Sec. 96.121 to each individual receiving

treatment for such abuse;

(2) In the case of an individual in need of such treatment who is

denied admission to the program on the basis of the lack of the capacity

of the program to admit the individual, will refer the individual to

another provider of tuberculosis services; and

[[Page 519]]

(3) Will implement infection control procedures established by the

principal agency of a State for substance abuse, in cooperation with the

State Department of Health/Tuberculosis Control Officer, which are

designed to prevent the transmission of tuberculosis, including the

following:

(i) Screening of patients;

(ii) Identification of those individuals who are at high risk of

becoming infected; and

(iii) Meeting all State reporting requirements while adhering to Federal

and State confidentiality requirements, including 42 CFR part 2; and

(4) will conduct case management activities to ensure that

individuals receive such services.

(b) The State shall develop effective strategies for monitoring

programs compliance with this section. States shall report under the

requirements of Sec. 96.122(g) on the specific strategies to be used to

identify compliance problems and corrective actions to be taken to

address those problems. The principal agency, in cooperation with the

State Department of Health/Tuberculosis Control Officer, shall also

establish linkages with other health care providers to ensure that

tuberculosis services are routinely made available. All individuals

identified with active tuberculosis shall be reported to the appropriate

State official as required by law and consistent with paragraph

(a)(3)(iii) of this section.

compliance with this section, the State shall maintain Statewide

expenditures of non-Federal amounts for such services at a level that is

not less than an average level of such expenditures maintained by the

State for the 2-year period preceding the first fiscal year for which

the State receives such a grant. In making this determination, States

shall establish a reasonable funding base for fiscal year 1993. The base

shall be calculated using Generally Accepted Accounting Principles and

the composition of the base shall be applied consistently from year to

year.

Sec. 96.128 Requirements regarding human immunodeficiency virus.

(a) In the case of a designated State as described in paragraph (b)

of this section, the State shall do the following--

(1) with respect to individuals undergoing treatment for substance

abuse, the State shall, subject to paragraph (c) of this section, carry

out one or more projects to make available to the individuals early

intervention services for HIV disease as defined in Sec. 96.121 at the

sites at which the individuals are undergoing such treatment;

(2) for the purpose of providing such early intervention services

through such projects, the State shall make available from the grant the

amounts prescribed by section 1924 of the PHS Act;

(3) the State shall, subject to paragraph (d) of this section, carry

out such projects only in geographic areas of the State that have the

greatest need for the projects;

(4) the State shall require programs participating in the project to

establish linkages with a comprehensive community resource network of

related health and social services organizations to ensure a wide-based

knowledge of the availability of these services; and

(5) the State shall require any entity receiving amounts from the

Block Grant for operating a substance abuse treatment program to follow

procedures developed by the principal agency of a State for substance

abuse, in consultation with the State Medical Director for Substance

Abuse Services, and in cooperation with the State Department of Health/

Communicable Disease Officer.

(b) For purposes of this section, a ``designated State'' is any

State whose rate of cases of acquired immune deficiency syndrome is 10

or more such cases per 100,000 individuals (as indicated by the number

of such cases reported to and confirmed by the Director of the Centers

for Disease Control for the most recent calendar year for which the data

are available).

substance abuse, the State shall ensure that each such program

participating

[[Page 520]]

in a project under paragraph (a) of this section will be a program that

began operation prior to the fiscal year for which the State is applying

to receive the grant. A program that so began operation may participate

in a project under paragraph (a) of this section without regard to

whether the program has been providing early intervention services for

HIV disease.

(d) If the State plans to carry out 2 or more projects under

paragraph (a) of this section, the State shall carry out one such

project in a rural area of the State, unless the requirement is waived.

The Secretary shall waive the requirement if the State certifies to the

Secretary that:

(1) The rate of cases of acquired immune deficiency syndrome is less

than or equal to two such cases per 100,000 individuals in any rural

area of the State, or there are so few infected persons that

establishing a project in the area is not reasonable; or

(2) There are no rural areas in the State as defined in Sec. 96.121.

(e) With respect to the provision of early intervention services for

HIV disease to an individual, the State shall ensure that the entities

comply with Sec. 96.137 regarding payment and Sec. 96.135 regarding

restrictions on expenditure of grant. The State shall also ensure that

such services will be undertaken voluntarily by, and with the informed

consent of, the individual, and undergoing such services will not be

required as a condition of receiving treatment services for substance

abuse or any other services.

(f) With respect to services provided for a State for purposes of

compliance with this section, the State shall maintain Statewide

expenditures of non-Federal amounts for such services at a level that is

not less than the average level of such expenditures maintained by the

State for 2-year period preceding the first fiscal year for which the

State receives such a grant. In making this determination, States shall

establish a reasonable base for fiscal year 1993. The base shall be

calculated using Generally Accepted Accounting Principles and the

composition of the base shall be applied consistently from year to year.

Sec. 96.129 Revolving funds for establishment of homes in which

recovering substance abusers may reside.

(a) The State shall establish and provide for the ongoing operation

of a revolving fund as follows:

(1) The purpose of the fund is to make loans for the costs of

establishing programs for the provision of housing in which individuals

recovering from alcohol and drug abuse may reside in groups of not less

than six individuals;

(2) Not less than $100,000 will be available for the revolving fund;

(3) Loans made from the revolving fund do not exceed $4,000 and that

each such loan is repaid to the revolving fund not later than 2 years

after the date on which the loan is made;

(4) Each such loan is repaid by such residents through monthly

installments by the date specified in the loan agreement involved;

(5) Such loans are made only to nonprofit private entities agreeing

that, in the operation of the program established pursuant to the loan--

(i) The use of alcohol or any illegal drug in the housing provided

by the program will be prohibited;

(ii) Any resident of the housing who violates such prohibition will

be expelled from the housing;

(iii) The costs of the housing, including fees for rent and

utilities, will be paid by the residents of the housing; and

(iv) The residents of the housing will, through a majority vote of

the residents, otherwise establish policies governing residence in the

housing, including the manner in which applications for residence in the

housing are approved;

(6) States shall identify and clearly define legitimate purposes for

which the funds will be spent, such as first month's rent, necessary

furniture (e.g., beds), facility modifications (e.g., conversion of

basement into a game room or extra bedrooms), and purchase of amenities

which foster healthy group living (e.g., dishwasher);

(7) In managing the revolving fund, the State and the financial

entity managing the fund for the State shall abide by all Federal, State

and local laws and regulations;

[[Page 521]]

(8) If the State decides to indirectly manage the fund using a

private nonprofit entity as the fund management group, the State shall

establish reasonable criteria for selecting the group, such as

qualifications, expertise, experience, and capabilities of the group,

and the State shall require that these entities abide by all Federal,

State and local laws and regulations;

(9) The State may seek assistance to approve or deny applications

from entities that meet State-established criteria;

(10) The State shall set reasonable criteria in determining the

eligibility of prospective borrowers such as qualifications, expertise,

capabilities, the acceptability of a proposed plan to use the funds and

operate the house, and an assessment of the potential borrower's ability

to pay back the funds;

(11) The State shall establish a procedure and process for applying

for a loan under the program which may include completion of the

application, personal interviews and submission of evidence to support

eligibility requirements, as well as establish a written procedure for

repayment which will set forth reasonable penalties for late or missed

payments and liability and recourse for default;

(12) The State shall provide clearly defined written instructions to

applicants which lays out timeliness, milestones, required

documentation, notification of reasonable penalties for late or missed

payments and recourse for default, notification on legitimate purposes

for which the loan may be spent, and other procedures required by the

State; and

(13) The State shall keep a written record of the number of loans

and amount of loans provided, the identities of borrowers and the

repayment history of each borrower and retain it for three years.

(b) The requirements established in paragraph (a) of this section

shall not apply to any territory of the United States other than the

Commonwealth of Puerto Rico.

Sec. 96.130 State law regarding sale of tobacco products to

individuals under age of 18.

(a) For purposes of this section, the term ``first applicable fiscal

year'' means fiscal year 1994, except in the case of any State described

in section 1926(a)(2) of the PHS Act, in which case ``first applicable

fiscal year'' means fiscal year 1995. The term ``outlet'' is any

location which sells at retail or otherwise distributes tobacco products

to consumers including (but not limited to) locations that sell such

products over-the-counter or through vending machines.

(b) The Secretary may make a grant to a State only if the State, for

the first applicable fiscal year and subsequent fiscal years, has in

effect a law providing that it is unlawful for any manufacturer,

retailer, or distributor of tobacco products to sell or distribute any

such product to any individual under age 18 through any sales or

distribution outlet, including over-the-counter and vending machine

sales.

shall, at a minimum, conduct annually a reasonable number of random,

unannounced inspections of outlets to ensure compliance with the law and

plan and begin to implement any other actions which the State believes

are necessary to enforce the law.

(d) For the third and subsequent fiscal years, the States shall do

the following:

(1) The State shall conduct annual, random, unannounced inspections

of both over-the-counter and vending machine outlets. The random

inspections shall cover a range of outlets (not preselected on the basis

of prior violations) to measure overall levels of compliance as well as

to identify violations.

(2) Random, unannounced inspections shall be conducted annually to

ensure compliance with the law and shall be conducted in such a way as

to provide a probability sample of outlets. The sample must reflect the

distribution of the population under age 18 throughout the State and the

distribution of the

[[Page 522]]

outlets throughout the State accessible to youth.

(e) The State shall annually submit to the Secretary with its

application a report which shall include the following:

(1) a detailed description of the State's activities to enforce the

law required in paragraph (b) of this section during the fiscal year

preceding the fiscal year for which that State is seeking the grant;

(2) a detailed description regarding the overall success the State

has achieved during the previous fiscal year in reducing the

availability of tobacco products to individuals under the age of 18,

including the results of the unannounced inspections as provided by

paragraph (d) of this section for which the results of over-the-counter

and vending machine outlet inspections shall be reported separately;

(3) a detailed description of how the unannounced inspections were

conducted and the methods used to identify outlets;

(4) the strategies to be utilized by the State for enforcing such

law during the fiscal year for which the grant is sought; and

(5) the identity of the agency or agencies designated by the

Governor to be responsible for the implementation of the requirements of

section 1926 of the PHS Act.

(f) Beginning in the second applicable fiscal year, the annual

report required under paragraph (e) of this section shall be made public

within the State, along with the State plan as provided in section 1941

of the PHS Act.

(g) Beginning with applications for the fourth applicable fiscal

year and all subsequent fiscal years, the Secretary will negotiate with

the State, as part of the State's plan, the interim performance target

the State will meet for that fiscal year and in subsequent years will

seek evidence of progress toward achieving or surpassing a performance

objective in which the inspection failure rate would be no more than 20%

within several years.

(h) Beginning with the second applicable fiscal year and all

subsequent fiscal years, the Secretary shall make a determination,

before making a Block Grant to a State for that fiscal year, whether the

State reasonably enforced its law in the previous fiscal year pursuant

to this section. In making this determination, the Secretary will

consider the following factors:

(1) During the first and second applicable fiscal years, the State

must conduct the activities prescribed in paragraph (c) of this section.

(2) During the third applicable fiscal year, the State must conduct

random, unannounced inspections in accordance with paragraph (d) of this

section.

(3) During the fourth and all subsequent applicable fiscal years,

the State must do the following:

(i) conduct random, unannounced inspections in accordance with

paragraph (d); and

(ii) except as provided by paragraph (h)(4) of this section, the

State must be in substantial compliance with the target negotiated with

the Secretary under paragraph (g) of this section for that fiscal year.

(4) If a State has not substantially complied with the target as

prescribed under paragraph (h)(3)(ii) of this section for any fiscal

year, the Secretary, in extraordinary circumstances, may consider a

number of factors, including survey data showing that the State is

making significant progress toward reducing use of tobacco products by

children and youth, data showing that the State has progressively

decreased the availability of tobacco products to minors, the

composition of the outlets inspected as to whether they were over-the-

counter or vending machine outlets, and the State's plan for improving

the enforcement of the law in the next fiscal year.

(i) If, after notice to the State and an opportunity for a hearing,

the Secretary determines under paragraph (h) of this section that the

State has not maintained compliance, the Secretary will reduce the

amount of the allotment in such amounts as is required by section

1926(c) of the PHS Act.

(j) States may not use the Block Grant to fund the enforcement of

their statute, except that they may expend funds from the primary

prevention setaside of their Block Grant allotment under 45 CFR

96.124(b)(1) for carrying out the administrative aspects of the

requirements such as the development

[[Page 523]]

of the sample design and the conducting of the inspections.

[61 FR 1508, Jan. 19, 1996]

Sec. 96.131 Treatment services for pregnant women.

(a) The State is required to, in accordance with this section,

ensure that each pregnant woman in the State who seeks or is referred

for and would benefit from such services is given preference in

admissions to treatment facilities receiving funds pursuant to the

grant. In carrying out this section, the State shall require all

entities that serve women and who receive such funds to provide

preference to pregnant women. Programs which serve an injecting drug

abuse population and who receive Block Grant funds shall give preference

to treatment as follows:

(1) Pregnant injecting drug users;

(2) Pregnant substance abusers;

(3) Injecting drug users; and

(4) All others.

(b) The State will, in carrying out this provision publicize the

availability to such women of services from the facilities and the fact

that pregnant women receive such preference. This may be done by means

of street outreach programs, ongoing public service announcements

(radio/television), regular advertisements in local/regional print

media, posters placed in targeted areas, and frequent notification of

availability of such treatment distributed to the network of community

based organizations, health care providers, and social service agencies.

require that, in the event that a treatment facility has insufficient

capacity to provide treatment services to any such pregnant woman who

seeks the services from the facility, the facility refer the woman to

the State. This may be accomplished by establishing a capacity

management program, utilizing a toll-free number, an automated reporting

system and/or other mechanisms to ensure that pregnant women in need of

such services are referred as appropriate. The State shall maintain a

continually updated system to identify treatment capacity for any such

pregnant women and will establish a mechanism for matching the women in

need of such services with a treatment facility that has the capacity to

treat the woman.

(d) The State, in the case of each pregnant woman for whom a

referral under paragraph (a) of this section is made to the State--

(1) will refer the woman to a treatment facility that has the

capacity to provide treatment services to the woman; or

(2) will, if no treatment facility has the capacity to admit the

woman, make available interim services, including a referral for

prenatal care, available to the woman not later than 48 hours after the

woman seeks the treatment services.

(e) Procedures for the implementation of this section shall be

developed in consultation with the State Medical Director for Substance

Abuse Services.

(f) The State shall develop effective strategies for monitoring

programs compliance with this section. States shall report under the

requirements of Sec. 96.122(g) on the specific strategies to be used to

identify compliance problems and corrective actions to be taken to

address those problems.

Sec. 96.132 Additional agreements.

(a) With respect to individuals seeking treatment services, the

State is required to improve (relative to fiscal year 1992) the process

in the State for referring the individuals to treatment facilities that

can provide to the individuals the treatment modality that is most

appropriate for the individuals. Examples of how this may be

accomplished include the development and implementation of a capacity

management/waiting list management system; the utilization of a toll-

free number for programs to report available capacity and waiting list

data; and the utilization of standardized assessment procedures that

facilitate the referral process.

(b) With respect to any facility for treatment services or

prevention activities that is receiving amounts from a Block Grant,

continuing education in such services or activities (or both, as the

case may be) shall be made available to employees of the facility who

provide the services or activities. The States will ensure that such

programs

[[Page 524]]

include a provision for continuing education for employees of the

facility in its funding agreement.

with the provision of other appropriate services (including health,

social, correctional and criminal justice, educational, vocational

rehabilitation, and employment services). In evaluating compliance with

this section, the Secretary will consider such factors as the existence

of memoranda of understanding between various service providers/agencies

and evidence that the State has included prevention and treatment

services coordination in its grants and contracts.

(d) Upon the request of a State, the Secretary may provide to a

State a waiver of any or all of the requirements established in

paragraphs (a), (b) and (c) of this section, if the Secretary determines

that, with respect to services for the prevention and treatment of

substance abuse, the requirement involved is unnecessary for maintaining

quality in the provision of such services in the State. In evaluating

whether to grant or deny a waiver, the Secretary will rely on

information drawn from the independent peer review/quality assurance

activities conducted by the State. For example, a State may be eligible

for a waiver of the requirement of paragraph (a) of this section if a

State already has a well developed process for referring individuals to

treatment facilities that can provide to the individuals the treatment

modality that is most appropriate for the individuals. The Secretary

will approve or deny a request for a waiver not later than 120 days

after the date on which the request is made. Any waiver provided by the

Secretary for paragraphs (a), (b) and (c) of this section, will be

applicable only to the fiscal year involved.

(e) The State is also required to have in effect a system to protect

from inappropriate disclosure patient records maintained by the State in

connection with an activity funded under the program involved or by any

entity which is receiving amounts from the grant and such system shall

be in compliance with all applicable State and Federal laws and

regulations, including 42 CFR part 2. This system shall include

provisions for employee education on the confidentiality requirements

and the fact that disciplinary action may occur upon inappropriate

disclosures. This requirement cannot be waived.

Sec. 96.133 Submission to Secretary of Statewide assessment of needs.

(a) The State is required to submit to the Secretary an assessment

of the need in the State for authorized activities, both by locality and

by the State in general. The State is to provide a broad range of

information which includes the following:

(1) The State is to submit data which shows the incidence and

prevalence in the State of drug abuse and the incidence and prevalence

in the State of alcohol abuse and alcoholism. For fiscal years 1993

through 1996, the State shall submit its best available data on the

incidence and prevalence of drug and alcohol abuse and alcoholism. The

State shall also provide a summary describing the weakness and bias in

the data and a description on how the State plans to strengthen the data

in the future.

(2) The State shall provide a description on current substance abuse

prevention and treatment activities:

(i) For fiscal year 1993, the State shall provide its best available

data on current prevention and treatment activities in the State in such

detail as it finds reasonably practicable given its own data collection

activities and records.

(ii) For fiscal year 1994 and subsequent years, the State shall

provide a detailed description on current prevention and treatment

activities in the State. This report shall include a detailed

description of the intended use of the funds relating to prevention and

treatment, as well as a description of treatment capacity. As to primary

prevention activities, the activities must be broken down by strategies

used, such as those provided in section 96.125, including the specific

activities conducted. The State shall provide the following data if

available: the specific risk factors being addressed by activity; the

age, race/ethnicity and gender of the population being targeted by the

[[Page 525]]

prevention activity; and the community size and type where the activity

is carried out. As to all treatment and prevention activities, including

primary prevention, the State shall provide the identities of the

entities that provide the services and describe the services provided.

The State shall submit information on treatment utilization to describe

the type of care and the utilization according to primary diagnosis of

alcohol or drug abuse, or a dual diagnosis of drug and alcohol abuse.

(3) The State may describe the need for technical assistance to

carry out Block Grant activities, including activities relating to the

collection of incidence and prevalence data identified in paragraph

(a)(1) of this section.

(4) The State shall establish goals and objectives for improving

substance abuse treatment and prevention activities and shall report

activities taken in support of these goals and objectives in its

application.

(5) The State shall submit a detailed description on the extent to

which the availability of prevention and treatment activities is

insufficient to meet the need for the activities, the interim services

to be made available under sections 96.126 and 96.131, and the manner in

which such services are to be so available. Special attention should be

provided to the following groups:

(i) Pregnant addicts;

(ii) Women who are addicted and who have dependent children;

(iii) Injecting drug addicts; and

(iv) Substance abusers infected with HIV or who have tuberculosis.

(6) Documentation describing the results of the State's management

information system pertaining to capacity and waiting lists shall also

be submitted, as well as a summary of such information for admissions

and, when available, discharges. As to prevention activities, the report

shall include a description of the populations at risk of becoming

substance abusers.

Sec. 96.134 Maintenance of effort regarding State expenditures.

(a) With respect to the principal agency of a State for carrying out

authorized activities, the agency shall for each fiscal year maintain

aggregate State expenditures by the principal agency for authorized

activities at a level that is not less than the average level of such

expenditures maintained by the State for the two year period preceding

the fiscal year for which the State is applying for the grant. The Block

Grant shall not be used to supplant State funding of alcohol and other

drug prevention and treatment programs.

(b) Upon the request of a State, the Secretary may waive all or part

of the requirement established in paragraph (a) of this section if the

Secretary determines that extraordinary economic conditions in the State

justify the waiver. The State involved must submit information

sufficient for the Secretary to make the determination, including the

nature of the extraordinary economic circumstances, documented evidence

and appropriate data to support the claim, and documentation on the year

for which the State seeks the waiver. The Secretary will approve or deny

a request for a waiver not later than 120 days after the date on which

the request is made. Any waiver provided by the Secretary shall be

applicable only to the fiscal year involved. ``Extraordinary economic

conditions'' mean a financial crisis in which the total tax revenue

declines at least one and one-half percent, and either unemployment

increases by at least one percentage point, or employment declines by at

least one and one-half percent.

Secretary shall make a determination of whether, for the previous fiscal

year or years, the State maintained material compliance with any

agreement made under paragraph (a) of this section. If the Secretary

determines that a State has failed to maintain such compliance, the

Secretary shall reduce the amount of the allotment for the State for the

fiscal year for which the grant is being made by an amount equal to the

amount constituting such failure for the previous fiscal year.

(d) The Secretary may make a Block Grant for a fiscal year only if

the State involved submits to the Secretary information sufficient for

the Secretary to make the determination required in

[[Page 526]]

paragraph (a) of this section, which includes the dollar amount

reflecting the aggregate State expenditures by the principal agency for

authorized activities for the two State fiscal years preceding the

fiscal year for which the State is applying for the grant. The base

shall be calculated using Generally Accepted Accounting Principles and

the composition of the base shall be applied consistently from year to

year.

Sec. 96.135 Restrictions on expenditure of grant.

(a) The State shall not expend the Block Grant on the following

activities:

(1) To provide inpatient hospital services, except as provided in

paragraph (c) of this section;

(2) To make cash payments to intended recipients of health services;

(3) To purchase or improve land, purchase, construct, or permanently

improve (other than minor remodeling) any building or other facility, or

purchase major medical equipment;

(4) To satisfy any requirement for the expenditure of non-Federal

funds as a condition for the receipt of Federal funds;

(5) To provide financial assistance to any entity other than a

public or nonprofit private entity; or

(6) To provide individuals with hypodermic needles or syringes so

that such individuals may use illegal drugs, unless the Surgeon General

of the Public Health Service determines that a demonstration needle

exchange program would be effective in reducing drug abuse and the risk

that the public will become infected with the etiologic agent for AIDS.

(b) The State shall limit expenditures on the following:

(1) The State involved will not expend more than 5 percent of the

grant to pay the costs of administering the grant; and

(2) The State will not, in expending the grant for the purpose of

providing treatment services in penal or correctional institutions of

the State, expend more than an amount prescribed by section 1931(a)(3)

of the PHS Act.

(1) With respect to compliance with the agreement made under

paragraph (a) of this section, a State (acting through the Director of

the principal agency) may expend a grant for inpatient hospital-based

substance abuse programs subject to the limitations of paragraph (c)(2)

of this section only when it has been determined by a physician that:

(i) The primary diagnosis of the individual is substance abuse, and

the physician certifies this fact;

(ii) The individual cannot be safely treated in a community-based,

nonhospital, residential treatment program;

(iii) The Service can reasonably be expected to improve an

individual's condition or level of functioning;

(iv) The hospital-based substance abuse program follows national

standards of substance abuse professional practice; and

(2) In the case of an individual for whom a grant is expended to

provide inpatient hospital services described above, the allowable

expenditure shall conform to the following:

(i) The daily rate of payment provided to the hospital for providing

the services to the individual will not exceed the comparable daily rate

provided for community-based, nonhospital, residential programs of

treatment for substance abuse; and

(ii) The grant may be expended for such services only to the extent

that it is medically necessary, i.e., only for those days that the

patient cannot be safely treated in a residential, community-based

program.

(d) The Secretary may approve a waiver for construction under

paragraph (a)(3) of this section within 120 days after the date of a

request only if:

(1) The State demonstrates to the Secretary that adequate treatment

cannot be provided through the use of existing facilities and that

alternative facilities in existing suitable buildings are not available;

(2) The State has carefully designed a plan that minimizes the costs

of renovation or construction;

(3) The State agrees, with respect to the costs to be incurred by

the State in carrying out the purpose of the waiver, to make available

non-Federal contributions in cash toward such costs in

[[Page 527]]

an amount equal to not less than $1 for each $1 of Federal funds

provided under the Block Grant; and

(4) The State submits the following to support paragraphs (b)(1),

(2) and (3), of this section:

(i) Documentation to support paragraph (d)(1) of this section, such

as local needs assessments, waiting lists, survey data and other related

information;

(ii) A brief description of the project to be funded, including the

type(s) of services to be provided and the projected number of

residential and/or outpatient clients to be served;

(iii) The specific amount of Block Grant funds to be used for this

project;

(iv) The number of outpatient treatment slots planned or the number

of residential beds planned, if applicable;

(v) The estimate of the total cost of the construction or

rehabilitation (and a description of how these estimates were

determined), based on an independent estimate of said cost, using

standardized measures as determined by an appropriate State construction

certifying authority;

(vi) An assurance by the State that all applicable National (e.g.,

National Fire Protection Association, Building Officials and Codes

Administrators International), Federal (National Environmental Policy

Act), State, and local standards for construction or rehabilitation of

health care facilities will be complied with;

(vii) Documentation of the State's commitment to obligate these

funds by the end of the first year in which the funds are available, and

that such funds must be expended by the end of the second year (section

1914(a)(2) of the PHS Act);

(viii) A certification that there is public support for a waiver, as

well as a description of the procedure used (and the results therein) to

ensure adequate comment from the general public and the appropriate

State and local health planning organizations, local governmental

entities and public and private-sector service providers that may be

impacted by the waiver request;

(ix) Evidence that a State is committed to using the proposed new or

rehabilitated substance abuse facility for the purposes stated in the

request for at least 20 years for new construction and at least 10 years

for rehabilitated facilities;

(x) An assurance that, if the facility ceases to be used for such

services, or if the facility is sold or transferred for a purpose

inconsistent with the State's waiver request, monies will be returned to

the Federal Government in an amount proportionate to the Federal

assistance provided, as it relates to the value of the facility at the

time services cease or the facility sold or transferred;

(xi) A description of the methods used to minimize the costs of the

construction or rehabilitation, including documentation of the costs of

the residential facilities in the local area or other appropriate

equivalent sites in the State;

(xii) An assurance that the State shall comply with the matching

requirements of paragraph (d)(3) of this section; and

(xiii) Any other information the Secretary may determine to be

appropriate.

Sec. 96.136 Independent peer review.

(a) The State shall for the fiscal year for which the grant is

provided, provide for independent peer review to assess the quality,

appropriateness, and efficacy of treatment services provided in the

State to individuals under the program involved, and ensure that at

least 5 percent of the entities providing services in the State under

such program are reviewed. The programs reviewed shall be representative

of the total population of such entities.

(b) The purpose of independent peer review is to review the quality

and appropriateness of treatment services. The review will focus on

treatment programs and the substance abuse service system rather than on

the individual practitioners. The intent of the independent peer review

process is to continuously improve the treatment services to alcohol and

drug abusers within the State system. ``Quality,'' for purposes of this

section, is the provision of treatment services which, within the

constraints of technology,

[[Page 528]]

resources, and patient/client circumstances, will meet accepted

standards and practices which will improve patient/client health and

safety status in the context of recovery. ``Appropriateness,'' for

purposes of this section, means the provision of treatment services

consistent with the individual's identified clinical needs and level of

functioning.

expertise in the field of alcohol and drug abuse treatment. Because

treatment services may be provided by multiple disciplines, States will

make every effort to ensure that individual peer reviewers are

representative of the various disciplines utilized by the program under

review. Individual peer reviewers must also be knowledgeable about the

modality being reviewed and its underlying theoretical approach to

addictions treatment, and must be sensitive to the cultural and

environmental issues that may influence the quality of the services

provided.

(d) As part of the independent peer review, the reviewers shall

review a representative sample of patient/client records to determine

quality and appropriateness of treatment services, while adhering to all

Federal and State confidentiality requirements, including 42 CFR Part 2.

The reviewers shall examine the following:

(1) Admission criteria/intake process;

(2) Assessments;

(3) Treatment planning, including appropriate referral, e.g.,

prenatal care and tuberculosis and HIV services;

(4) Documentation of implementation of treatment services;

(5) Discharge and continuing care planning; and

(6) Indications of treatment outcomes.

(e) The State shall ensure that the independent peer review will not

involve practitioners/providers reviewing their own programs, or

programs in which they have administrative oversight, and that there be

a separation of peer review personnel from funding decisionmakers. In

addition, the State shall ensure that independent peer review is not

conducted as part of the licensing/certification process.

(f) The States shall develop procedures for the implementation of

this section and such procedures shall be developed in consultation with

the State Medical Director for Substance Abuse Services.

Sec. 96.137 Payment schedule.

(a) The Block Grant money that may be spent for Secs. 96.124(c) and

(e), 96.127 and 96.128 is governed by this section which ensures that

the grant will be the ``payment of last resort.'' The entities that

receive funding under the Block Grant and provides services required by

the above-referenced sections shall make every reasonable effort,

including the establishment of systems for eligibility determination,

billing, and collection, to:

(1) Collect reimbursement for the costs of providing such services

to persons who are entitled to insurance benefits under the Social

Security Act, including programs under title XVIII and title XIX, any

State compensation program, any other public assistance program for

medical expenses, any grant program, any private health insurance, or

any other benefit program; and

(2) Secure from patients or clients payments for services in

accordance with their ability to pay.

Appendix A to Part 96--Uniform Definitions of Services | Top of Page

1. Adoption Services

2. Case Management Services

3. Congregate Meals

4. Counseling Services

5. Day Care Services--Adults

6. Day Care Services--Children

7. Education and Training Services

8. Employment Services

9. Family Planning Services

10. Foster Care Services for Adults

11. Foster Care Services for Children

12. Health Related and Home Health Services

13. Home Based Services

14. Home Delivered Meals

15. Housing Services

16. Independent and Transitional Living Services

17. Information and Referral Services

18. Legal Services

19. Pregnancy and Parenting Services for Young Parents

20. Prevention and Intervention Services

21. Protective Services for Adults

22. Protective Services for Children

23. Recreational Services

24. Residential Treatment Services

[[Page 529]]

25. Special Services for Persons with Developmental or Physical

Disabilities, or Persons with Visual or Auditory Impairments

26. Special Services for Youth Involved in or At Risk of Involvement in

Criminal Activity

27. Substance Abuse Services

28. Transportation Services

29. Other Services

Uniform Definitions of Services

1. Adoption Services

Adoption services are those services or activities provided to

assist in bringing about the adoption of a child. Component services and

activities may include, but are not limited to, counseling the

biological parent(s), recruitment of adoptive homes, and pre- and post-

placement training and/or counseling.

2. Case Management Services

Case management services are services or activities for the

arrangement, coordination, and monitoring of services to meet the needs

of individuals and families. Component services and activities may

include individual service plan development; counseling; monitoring,

developing, securing, and coordinating services; monitoring and

evaluating client progress; and assuring that clients' rights are

protected.

3. Congregate Meals

Congregate meals are those services or activities designed to

prepare and serve one or more meals a day to individuals in central

dining areas in order to prevent institutionalization, malnutrition, and

feelings of isolation. Component services or activities may include the

cost of personnel, equipment, and food; assessment of nutritional and

dietary needs; nutritional education and counseling; socialization; and

other services such as transportation and information and referral.

4. Counseling Services

Counseling services are those services or activities that apply

therapeutic processes to personal, family, situational, or occupational

problems in order to bring about a positive resolution of the problem or

improved individual or family functioning or circumstances. Problem

areas may include family and marital relationships, parent-child

problems, or drug abuse.

5. Day Care Services--Adults

Day care services for adults are those services or activities

provided to adults who require care and supervision in a protective

setting for a portion of a 24-hour day. Component services or activities

may include opportunity for social interaction, companionship and self-

education; health support or assistance in obtaining health services;

counseling; recreation and general leisure time activities; meals;

personal care services; plan development; and transportation.

6. Day Care Services--Children

Day care services for children (including infants, pre-schoolers,

and school age children) are services or activities provided in a

setting that meets applicable standards of state and local law, in a

center or in a home, for a portion of a 24-hour day. Component services

or activities may include a comprehensive and coordinated set of

appropriate developmental activities for children, recreation, meals and

snacks, transportation, health support services, social service

counseling for parents, plan development, and licensing and monitoring

of child care homes and facilities.

7. Education and Training Services

Education and training services are those services provided to

improve knowledge or daily living skills and to enhance cultural

opportunities. Services may include instruction or training in, but are

not limited to, such issues as consumer education, health education,

community protection and safety education, literacy education, English

as a second language, and General Educational Development (G.E.D.).

Component services or activities may include screening, assessment and

testing; individual or group instruction; tutoring; provision of books,

supplies and instructional material; counseling; transportation; and

referral to community resources.

8. Employment Services

Employment services are those services or activities provided to

assist individuals in securing employment or acquiring or learning

skills that promote opportunities for employment. Component services or

activities may include employment screening, assessment, or testing;

structured job skills and job seeking skills; specialized therapy

(occupational, speech, physical); special training and tutoring,

including literacy training and pre-vocational training; provision of

books, supplies and instructional material; counseling, transportation;

and referral to community resources.

9. Family Planning Services

Family planning services are those educational, comprehensive

medical or social services or activities which enable individuals,

including minors, to determine freely the number and spacing of their

children and to select the means by which this may be achieved. These

services and activities include a broad range of acceptable and

effective methods and services to limit or enhance fertility, including

contraceptive

[[Page 530]]

methods (including natural family planning and abstinence), and the

management of infertility (including referral to adoption). Specific

component services and activities may include preconceptional

counseling, education, and general reproductive health care, including

diagnosis and treatment of infections which threaten reproductive

capability. Family planning services do not include pregnancy care

(including obstetric or prenatal care).

10. Foster Care Services for Adults

Foster care services for adults are those services or activities

that assess the need and arrange for the substitute care and alternate

living situation of adults in a setting suitable to the individual's

needs. Individuals may need such services because of social, physical or

mental disabilities, or as a consequence of abuse or neglect. Care may

be provided in a community-based setting, or such services may arrange

for institutionalization when necessary. Component services or

activities include assessment of the individual's needs; case planning

and case management to assure that the individual receives proper care

in the placement; counseling to help with personal problems and

adjusting to new situations; assistance in obtaining other necessary

supportive services; determining, through periodic reviews, the

continued appropriateness of and need for placement; and recruitment and

licensing of foster care homes and facilities.

11. Foster Care Services for Children

Foster care services for children are those services or activities

associated with the provision of an alternative family life experience

for abused, neglected or dependent children, between birth and the age

of majority, on the basis of a court commitment or a voluntary placement

agreement signed by the parent or guardian. Services may be provided to

children in foster family homes, foster homes of relatives, group homes,

emergency shelters, residential facilities, child care institutions,

pre-adoptive homes or supervised independent living situation. Component

services or activities may include assessment of the child's needs; case

planning and case management to assure that the child receives proper

care in the placement; medical care as an integral but subordinate part

of the service; counseling of the child, the child's parents, and the

foster parents; referral and assistance in obtaining other necessary

supportive services; periodical reviews to determine the continued

appropriateness and need for placement; and recruitment and licensing of

foster homes and child care institutions.

12. Health Related and Home Health Services

Health related and home health services are those in-home or out-of-

home services or activities designed to assist individuals and families

to attain and maintain a favorable condition of health. Component

services and activities may include providing an analysis or assessment

of an individual's health problems and the development of a treatment

plan; assisting individuals to identify and understand their health

needs; assisting individuals to locate, provide or secure, and utilize

appropriate medical treatment, preventive medical care, and health

maintenance services, including in-home health services and emergency

medical services; and providing follow-up services as needed.

13. Home Based Services

Home based services are those in-home services or activities

provided to individuals or families to assist with household or personal

care activities that improve or maintain adequate family well-being.

These services may be provided for reasons of illness, incapacity,

frailty, absence of a caretaker relative, or to prevent abuse and

neglect of a child or adult. Major service components include homemaker

services, chore services, home maintenance services, and household

management services. Component services or activities may include

protective supervision of adults and/or children to help prevent abuse,

temporary non-medical personal care, house-cleaning, essential shopping,

simple household repairs, yard maintenance, teaching of homemaking

skills, training in self-help and self-care skills, assistance with meal

planning and preparation, sanitation, budgeting, and general household

management.

14. Home Delivered Meals

Home-delivered meals are those services or activities designed to

prepare and deliver one or more meals a day to an individual's residence

in order to prevent institutionalization, malnutrition, and feelings of

isolation. Component services or activities may include the cost of

personnel, equipment, and food; assessment of nutritional and dietary

needs; nutritional education and counseling; socialization services; and

information and referral.

15. Housing Services

Housing services are those services or activities designed to assist

individuals or families in locating, obtaining, or retaining suitable

housing. Component services or activities may include tenant counseling;

helping

[[Page 531]]

individuals and families to identify and correct substandard housing

conditions on behalf of individuals and families who are unable to

protect their own interests; and assisting individuals and families to

understand leases, secure utilities, make moving arrangements and minor

renovations.

16. Independent and Transitional Living Services

Independent and transitional living services are those services and

activities designed to help older youth in foster care or homeless youth

make the transition to independent living, or to help adults make the

transition from an institution, or from homelessness, to independent

living. Component services or activities may include educational and

employment assistance, training in daily living skills, and housing

assistance. Specific component services and activities may include

supervised practice living and post-foster care services.

17. Information and Referral Services

Information and referral services are those services or activities

designed to provide information about services provided by public and

private service providers and a brief assessment of client needs (but

not diagnosis and evaluation) to facilitate appropriate referral to

these community resources.

18. Legal Services

Legal services are those services or activities provided by a lawyer

or other person(s) under the supervision of a lawyer to assist

individuals in seeking or obtaining legal help in civil matters such as

housing, divorce, child support, guardianship, paternity, and legal

separation. Component services or activities may include receiving and

preparing cases for trial, provision of legal advice, representation at

hearings, and counseling.

19. Pregnancy and Parenting Services for Young Parents

Pregnancy and parenting services are those services or activities

for married or unmarried adolescent parents and their families designed

to assist young parents in coping with the social, emotional, and

economic problems related to pregnancy and in planning for the future.

Component services or activities may include securing necessary health

care and living arrangements; obtaining legal services; and providing

counseling, child care education, and training in and development of

parenting skills.

20. Prevention and Intervention Services

Prevention and intervention services are those services or

activities designed to provide early identification and/or timely

intervention to support families and prevent or ameliorate the

consequences of, abuse, neglect, or family violence, or to assist in

making arrangement for alternate placements or living arrangements where

necessary. Such services may also be provided to prevent the removal of

a child or adult from the home. Component services and activities may

include investigation; assessment and/or evaluation of the extent of the

problem; counseling, including mental health counseling or therapy as

needed; developmental and parenting skills training; respite care; and

other services including supervision, case management, and

transportation.

21. Protective Services for Adults

Protective services for adults are those services or activities

designed to prevent or remedy abuse, neglect or exploitation of adults

who are unable to protect their own interests. Examples of situations

that may require protective services are injury due to maltreatment or

family violence; lack of adequate food, clothing or shelter; lack of

essential medical treatment or rehabilitation services; and lack of

necessary financial or other resources. Component services or activities

may include investigation; immediate intervention; emergency medical

services; emergency shelter; developing case plans; initiation of legal

action (if needed); counseling for the individual and the family;

assessment/evaluation of family circumstances; arranging alternative or

improved living arrangements; preparing for foster placement, if needed;

and case management and referral to service providers.

22. Protective Services for Children

Protective services for children are those services or activities

designed to prevent or remedy abuse, neglect, or exploitation of

children who may be harmed through physical or mental injury, sexual

abuse or exploitation, and negligent treatment or maltreatment,

including failure to be provided with adequate food, clothing, shelter,

or medical care. Component services or activities may include immediate

investigation and intervention; emergency medical services; emergency

shelter; developing case plans; initiation of legal action (if needed);

counseling for the child and the family; assessment/evaluation of family

circumstances; arranging alternative living arrangement; preparing for

foster placement, if needed; and case management and referral to service

providers.

23. Recreational Services

Recreational services are those services or activities designed to

provide, or assist individuals to take advantage of, individual or group

activities directed towards promoting physical, cultural, and/or social

development.

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24. Residential Treatment Services

Residential treatment services provide short-term residential care

and comprehensive treatment and services for children or adults whose

problems are so severe or are such that they cannot be cared for at home

or in foster care and need the specialized services provided by

specialized facilities. Component services and activities may include

diagnosis and psychological evaluation; alcohol and drug detoxification

services; individual, family, and group therapy and counseling; remedial

education and GED preparation; vocational or pre-vocational training;

training in activities of daily living; supervised recreational and

social activities; case management; transportation; and referral to and

utilization of other services.

25. Special Services for Persons With Developmental or Physical

Disabilities, or Persons With Visual or Auditory Impairments

Special services for persons with developmental or physical

disabilities, or persons with visual or auditory impairments, are

services or activities to maximize the potential of persons with

disabilities, help alleviate the effects of physical, mental or

emotional disabilities, and to enable these persons to live in the least

restrictive environment possible. Component services or activities may

include personal and family counseling; respite care; family support;

recreation; transportation; aid to assist with independent functioning

in the community; and training in mobility, communication skills, the

use of special aids and appliances, and self-sufficiency skills.

Residential and medical services may be included only as an integral,

but subordinate, part of the services.

26. Special Services for Youth Involved in or at Risk of Involvement

With Criminal Activity

Special services for youth involved in or at risk of involvement

with criminal activity are those services or activities for youth who

are, or who may become, involved with the juvenile justice system and

their families. Components services or activities are designed to

enhance family functioning and/or modify the youth's behavior with the

goal of developing socially appropriate behavior and may include

counseling, intervention therapy, and residential and medical services

if included as an integral but subordinate part of the service.

27. Substance Abuse Services

Substance abuse services are those services or activities that are

primarily designed to deter, reduce, or eliminate substance abuse or

chemical dependence. Except for initial detoxification services, medical

and residential services may be included but only as an integral but

subordinate part of the service. Component substance abuse services or

activities may include a comprehensive range of personal and family

counseling methods, methadone treatment for opiate abusers, or

detoxification treatment for alcohol abusers. Services may be provided

in alternative living arrangements such as institutional settings and

community-based halfway houses.

28. Transportation Services

Transportation services are those services or activities that

provide or arrange for the travel, including travel costs, of

individuals in order to access services, or obtain medical care or

employment. Component services or activities may include special travel

arrangements such as special modes of transportation and personnel to

accompany or assist individuals or families to utilize transportation.

29. Other Services

Other Services are services that do not fall within the definitions

of the preceding 28 services. The definition used by the State for each

of these services should appear elsewhere in the annual report.

[58 FR 60128, Nov. 15, 1993]

Appendix B to Part 96--SSBG Reporting Form and Instructions | Top of Page

Instructions

This form must be used by states as the reporting instrument to

satisfy the requirements of 45 CFR 96.74(a) (1) through (4). Following

are instructions on how to complete the form:

General

1. Enter the name of the state submitting the form.

2. Enter the fiscal year for which the form is being submitted.

Either the state or federal fiscal year may be used.

3. Enter the month and year of the beginning and end of the fiscal

year--e.g., 07/91 to 06/92.

Services

4. The ``service'' column contains a list of services that are to be

used for national reporting. This list in no way mandates how a state is

to design its program of services under the SSBG, but rather is to be

used only to obtain nationally comparable statistics. If the services

that your state provides reasonably fit the uniform service definitions

in appendix A, use them. In cases where no fit is possible between the

state services and the services on the form, use item number 29--the

other services category. Please list all services reported under item

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29, using a separate sheet if necessary. The state's definition of these

services must appear in the state's annual report.

Recipient Data

In reporting the following data:

Each state should use its own definitions of the terms

``adult'' and ``child.'' These definitions should be described elsewhere

in the annual report. If the definitions of adult and child vary by

services, all such definitions must be included.

States should, if possible, consider as the ``recipient''

of the service the individual to whom the service is provided. This

means that the child would be considered the recipient of child day care

services, even if such services are provided to allow the child's adult

caretaker to pursue employment. Similarly, an adult who receives

counseling services should be considered as the recipient of that

service, even if the service is provided as part of a child's protective

services plan. In cases where each member of a family, for example,

receives an individual service such as counseling, each family member

should be considered as a separate recipient.

States should, if possible, consider as a service, i.e., a

count of one, any service provided to a single recipient for the

duration of the reporting period (one year), or any fraction thereof. In

cases where an individual received a service during the reporting

period, then discontinued the service, and then received the service

again, the individual should only be counted once, if possible.

The criteria applied in determining eligibility for each

service--such as income eligibility guidelines, sliding fee scales, the

effect of public assistance benefits, and any requirements for

enrollment in school or training programs--should be described elsewhere

in the annual report.

5. Under ``Number of Recipients--Adults'' enter the number of adults

who have received each service funded in whole or part under the SSBG.

6. Under ``Number of Recipients--Children'' enter the number of

children who have received each service funded in whole or part under

the SSBG.

7. Under ``Number of Recipients--Total'' enter the total number of

recipients of each service. This should be the sum of the adults and

children reported in the preceding ``adult'' and ``children'' columns.

Expenditure Data

8. Under ``Expenditures--Total $'' enter all funds that the state

expends on each service. This should include SSBG funds as well as funds

from other federal sources, state funds, and local funds. A listing of

the sources of these funds, and the amounts allocated, should appear

elsewhere in the annual report.

9. Under ``Expenditures--SSBG $'' enter the total SSBG funds

expended for each service. This column should be totaled, and the sum

placed at the bottom of the column in the ``Totals'' box.

10. Under ``Expenditures--Per Adult'' enter the average amount of

SSBG funds expended on each adult recipient of each service.

11. Under ``Expenditures--Per Child'' enter the average amount of

SSBG funds expended on each child recipient of each service.

12. Item 30 in the ``Total SSBG $'' column should contain other

expenditures and income as follows:

a. ``Transfers In'' should contain funds transferred from other

federal block grants to the SSBG program. A listing of the source(s) of

block grant funds and their amounts should appear elsewhere in the

annual report.

b. ``Transfers Out'' should show funds transferred from the SSBG

program to other federal block grants. A listing of the program(s) to

which SSBG funds were transferred, and the amounts, should appear

elsewhere in the annual report.

c. ``Carry Forward'' should show funds the state intends to carry

over from the reporting fiscal year to the following fiscal year. The

SSBG statute permits states two years to expend SSBG funds.

d. ``Carry Over'' should show funds carried from a previous fiscal

year into the current reporting year.

e. ``Administrative Costs'' should show all other non-service use of

SSBG funds--e.g., funds expended for training, licensing activities, or

overhead costs.

f. This column should be totaled, and the sum placed at the bottom

of the column in the ``Totals'' box.

13. Under ``Provisions Method--Public/Private'' enter a check mark

on ``X'' in the appropriate column(s) to indicate whether a service was

provided by public agencies or private agencies. In some cases, a given

service may have been provided by both methods, in which case both

columns would be checked for that service.

14. Enter the name, title, and telephone number of a contact person

who can answer questions about the data.

15. Code Column:

Six of the columns on this form have a ``C'' column to the right of

them. These are ``Code'' columns to permit a state to indicate, for

expenditure data, whether each cell of data is A (actual), E

(estimated), or S (sampled), and for recipient data, whether the data is

based on an unduplicated (U) or duplicated (D) count of recipients.

These codes will permit the Department to determine the relative degree

of statistical validity of the data. Actual recipient counts and

expenditure amounts must be used when available. If actual counts are

not available, sampling and/or estimating may be used to

[[Page 534]]

derive the numbers in this report. A description of the sampling and/or

estimation methods used to derive any data must appear elsewhere in the

annual report.

Report Submission Using PC Diskettes

States with personal computer (PC) equipment may submit this data

using PC diskettes in addition to the hardcopy form which will be

included in the complete annual report. Diskettes may be either 5\1/4\''

or 3\1/2\''; data may be submitted using Lotus 1-2-3, Quattro Pro, DBase

III or IV, Wordstar, Word Perfect, or ASCII formats. Use of Lotus 1-2-3

is preferred, but any of the other formats listed may be used. If a

state wishes to use a format other than one listed here, please call

Bryant Tudor on (202) 401-5535 or Frank Burns on (202) 401-5536, or

write to the Office of Community Services, Administration for Children

and Families, Fourth Floor--East Wing, 370 L'Enfant Promenade, SW.,

Washington, DC 10447. Use of diskettes can greatly reduce transcription

errors and also facilitate processing of the data once received. We

anticipate that many states will want to avail themselves of this method

of reporting.

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[GRAPHIC] [TIFF OMITTED] TC01JA91.006

[58 FR 60128, Nov. 15, 1993]

[[Page 536]]

URL to Legislation/Regulation

https://www.acf.hhs.gov//ocs/law-regulation/liheap-statute-and-regulations