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AGENCY:

Health Resources and Services Administration (HRSA), HHS.

ACTION:

Final rule.

SUMMARY:

This Final Rule sets forth the Secretary's proposal to require HTPC grant recipients to contribute non-Federal matching funds in years 2 through 5 of the project period equal to two times the amount of the Federal Grant Award or such lesser amount Start Printed Page 3080determined by the Secretary for good cause shown.

DATES:

This Final Rule is effective January 24, 2007.

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FOR FURTHER INFORMATION CONTACT:

Jose Belardo, J.D., 301-443-0757.

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SUPPLEMENTARY INFORMATION:

Background

Authorized by 42 U.S.C. 701(a)(3), the HTPC is a grant program funded and administered by the Health Resources and Services Administration's (HRSA) Maternal and Child Health Bureau (MCHB). Its purpose is to stimulate innovative community-based programs that employ prevention strategies to promote access to health care for children and their families nationwide by providing grant funds to implement a new or enhance an existing child health initiative. Currently, there are 58 HTPC funded projects. In fiscal year (FY) 2006, 49 projects are continuing grantees and 9 are newly funded.

Since the inception of this grant program in 1989, the HTPC has issued a programmatic requirement in its guidance that grant applicants must demonstrate the capability to meet cost participation goals by securing non-Federal matching funds and/or in-kind resources for the second through fifth years of the project. One of the key goals of this initiative is that funded programs are to be sustainable beyond the 5-year Federal funding period. In 1999, a formal evaluation of the HTPC The Health Tomorrows Partnership for Children Program in Review: Analysis and Findings of a Descriptive Survey was completed, and the authors concluded that the required match fosters long-term sustainability and leveraging of community resources. There was a 70 percent sustainability rate for those projects with activities that were sustained after the Federal funding period.

This Final Rule will formally introduce a cost participation component to the HTPC grant program, thus requiring its grantees to contribute non-Federal matching funds and/or in-kind resources in years 2 through 5 of the 5-year project period equal to two times the amount of the Federal Grant Award or such lesser amount determined by the Secretary for good cause shown. The non-Federal matching funds and/or in-kind resources must come from non-Federal funds, including, but not limited to, individuals, corporations, foundations in-kind resources, or State and local agencies. Documentation of matching funds would be required (i.e., specific sources, funding level, in-kind contributions). Reimbursement for services provided to an individual under a State plan under Title XIX will not be deemed “non-Federal matching funds” for the purposes of this provision.

Public Participation

The public was invited to respond to Notice of Proposed Rulemaking (NPRM), which was published in the Federal Register on December 27, 2005 (70 FR 76435-76436). The NPRM provided for a 60-day comment period. We received no comments from the public.

Economic and Regulatory Impact

Executive Order 12866—Regulatory Planning and Review

HRSA has examined the economic implications of this Final Rule as required by Executive Order 12866. Executive Order 12866 directs agencies to assess all costs and benefits of available regulatory alternatives and, when regulation is necessary, to select regulatory approaches that maximize net benefits (including potential economic, environmental, public health and safety and other advantages; distributive impacts; and equity). Executive Order 12866 classifies a rule as significant if it meets any one of a number of specified conditions, including: having an annual effect on the economy of $100 million, adversely affecting a sector of the economy in a material way, adversely affecting competition, or adversely affecting jobs. A regulation is also considered a significant regulatory action if it raises novel legal or policy issues.

HRSA concludes that this Final Rule is a significant regulatory action under the Executive Order since it raises novel legal and policy issues under Section 3(f)(4). HRSA concludes, however, that this Final Rule does not meet the significance threshold of $100 million effect on the economy in any one year under Section 3(f)(1).

Impact of the New Rule

Inclusion of this rule will greatly enhance grant recipients' ability to achieve the HTPC goal/performance measure of program sustainability beyond the 5-year Federal funding period.

Paperwork Reduction Act of 1995

The Final Rule does not impose any new data collection requirements.

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List of Subjects in 42 CFR Part 51a

• Grant programs—Handicapped
• Health
• Health care
• Health professions
• Maternal and Child Health

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Editor's Note:

This document was received at the Office of the Federal Register on January 19, 2007.

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For the reasons set forth in the preamble, HRSA amends

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PART 51a—PROJECT GRANTS FOR MATERNAL AND CHILD HEALTH

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1. The authority citation for part 51a continues to read as follows:

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Authority: 42 U.S.C. 1302; 42 U.S.C. 702(a), 702(b)(1)(A) and 706(a)(3).

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2. Amend § 51a.8 to add paragraph (c) to read as follows:

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