§  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]