§ 54.8   Prohibition on participation: suspension and debarment.

   (a) Definitions—(1) Activities associated with or related to the schools and
   libraries support mechanism, the high-cost support mechanism, the rural
   health care support mechanism, and the low-income support mechanism. Such
   matters include the receipt of funds or discounted services through one or
   more of these support mechanisms, or consulting with, assisting, or advising
   applicants or service providers regarding one or more of these support
   mechanisms.

   (2) Civil liability. The disposition of a civil action by any court of
   competent jurisdiction, whether entered by verdict, decision, settlement
   with admission of liability, stipulation, or otherwise creating a civil
   liability for the wrongful acts complained of, or a final determination of
   liability under the Program Fraud Civil Remedies Act of 1988 (31 U.S.C.
   3801-12).

   (3) Consultant. A person that for consideration advises or consults a person
   regarding  the schools and libraries support mechanism, but who is not
   employed by the person receiving the advice or consultation.

   (4) Conviction. A judgment or conviction of a criminal offense by any court
   of competent jurisdiction, whether entered by verdict or a plea, including a
   plea of nolo contendere.

   (5) Debarment. Any action taken by the Commission in accordance with these
   regulations to exclude a person from activities associated with or relating
   to  the schools and libraries support mechanism, the high-cost support
   mechanism, the rural health care support mechanism, and the low-income
   support mechanism. A person so excluded is “debarred.”

   (6) Person. Any individual, group of individuals, corporation, partnership,
   association, unit of government or legal entity, however organized.

   (7) Suspension. An action taken by the Commission in accordance with these
   regulations that immediately excludes a person from activities associated
   with  or  relating to the schools and libraries support mechanism, the
   high-cost support mechanism, the rural health care support mechanism, and
   the low-income support mechanism for a temporary period, pending completion
   of the debarment proceedings. A person so excluded is “suspended.”

   (b) Suspension and debarment in general. The Commission shall suspend and
   debar a person for any of the causes in paragraph (c) of this section using
   procedures established in this section, absent extraordinary circumstances.

   (c) Causes for suspension and debarment. Causes for suspension and debarment
   are conviction of or civil judgment for attempt or commission of criminal
   fraud, theft, embezzlement, forgery, bribery, falsification or destruction
   of records, making false statements, receiving stolen property, making false
   claims, obstruction of justice and other fraud or criminal offense arising
   out of activities associated with or related to the schools and libraries
   support mechanism, the high-cost support mechanism, the rural health care
   support mechanism, and the low-income support mechanism.

   (d)  Effect of suspension and debarment. Unless otherwise ordered, any
   persons suspended or debarred shall be excluded from activities associated
   with  or  related  to the schools and libraries support mechanism, the
   high-cost support mechanism, the rural health care support mechanism, and
   the low-income support mechanism. Suspension and debarment of a person other
   than an individual constitutes suspension and debarment of all divisions
   and/or other organizational elements from participation in the program for
   the suspension and debarment period, unless the notice of suspension and
   proposed debarment is limited by its terms to one or more specifically
   identified individuals, divisions, or other organizational elements or to
   specific types of transactions.

   (e) Procedures for suspension and debarment. The suspension and debarment
   process shall proceed as follows:

   (1) Upon evidence that there exists cause for suspension and debarment, the
   Commission shall provide prompt notice of suspension and proposed debarment
   to the person. Suspension shall be effective upon the earlier of receipt of
   notification or publication in the Federal Register.

   (2) The notice shall:

   (i) Give the reasons for the proposed debarment in terms sufficient to put a
   person on notice of the conduct or transaction(s) upon which it is based and
   the cause relied upon, namely, the entry of a criminal conviction or civil
   judgment arising out of activities associated with or related to the schools
   and libraries support mechanism, the high-cost support mechanism, the rural
   health care support mechanism, and the low-income support mechanism;

   (ii) Explain the applicable debarment procedures;

   (iii) Describe the effect of debarment.

   (3) A person subject to proposed debarment, or who has an existing contract
   with a person subject to proposed debarment or intends to contract with such
   a person to provide or receive services in matters arising out of activities
   associated with or related to the schools and libraries support mechanism,
   the high-cost support mechanism, the rural health care support mechanism,
   and the low-income support mechanism may contest debarment or the scope of
   the  proposed debarment. A person contesting debarment or the scope of
   proposed debarment must file arguments and any relevant documentation within
   thirty (30) calendar days of receipt of notice or publication in the Federal
   Register, whichever is earlier.

   (4) A person subject to proposed debarment, or who has an existing contract
   with a person subject to proposed debarment or intends to contract with such
   a person to provide or receive services in matters arising out of activities
   associated with or related to the schools and libraries support mechanism,
   the high-cost support mechanism, the rural health care support mechanism,
   and the low-income support mechanism may also contest suspension or the
   scope of suspension, but such action will not ordinarily be granted. A
   person contesting suspension or the scope of suspension must file arguments
   and any relevant documentation within thirty (30) calendar days of receipt
   of notice or publication in the Federal Register, whichever is earlier.

   (5) Within ninety (90) days of receipt of any information submitted by the
   respondent, the Commission, in the absence of extraordinary circumstances,
   shall  provide  the respondent prompt notice of the decision to debar.
   Debarment  shall be effective upon the earlier of receipt of notice or
   publication in the Federal Register.

   (f) Reversal or limitation of suspension or debarment. The Commission may
   reverse  a  suspension  or  debarment, or limit the scope or period of
   suspension or debarment, upon a finding of extraordinary circumstances,
   after due consideration following the filing of a petition by an interested
   party or upon motion by the Commission. Reversal of the conviction or civil
   judgment upon which the suspension and debarment was based is an example of
   extraordinary circumstances.

   (g) Time period for debarment. A debarred person shall be prohibited from
   involvement with the schools and libraries support mechanism for three (3)
   years  from the date of debarment. The Commission may, if necessary to
   protect the public interest, set a longer period of debarment or extend the
   existing period of debarment. If multiple convictions or judgments have been
   rendered,  the Commission shall determine based on the facts before it
   whether debarments shall run concurrently or consecutively.

   [ 68 FR 36943 , June 20, 2003. Redesignated and amended at  72 FR 54218 , Sept.
   24, 2007]

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Subpart B—Services Designated for Support

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