B-202245-OM, JUN 24, 1983

B-202245-OM: Jun 24, 1983

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ANSWER: A CASH MATCH REQUIREMENT IS PERMISSIBLE ONLY FOR GRANTS UNDER PART A OR PART C OF TITLE II OF THE JJDP ACT. WHICH IS AUTHORIZED TO CARRY OUT VARIOUS FUNCTIONS RELATING TO COLLECTING INFORMATION. AS FOLLOWS: "(A) WHENEVER THE ADMINISTRATOR DETERMINES THAT IT WILL CONTRIBUTE TO THE PURPOSES OF PART A OR PART C. THE LEGISLATIVE HISTORY INDICATES THAT SECTION 228(A) WAS INTENDED TO EXCLUDE GRANTS UNDER PARTS A AND C OF THE JJDP ACT FROM THE BLANKET PROHIBITION ON MATCHING REQUIREMENTS IN SECTION 228(C). THE SENATE VERSION OF THE BILL WOULD HAVE ALLOWED ALL FORMULA GRANT PROJECTS TO BE FUNDED UP TO THE TOTAL COST WITH FEDERAL FUNDS. THE HOUSE BILL WOULD HAVE REQUIRED THAT FEDERAL FUNDS COVER ALL COSTS OF PROJECTS FUNDED UNDER FORMULA GRANTS.

B-202245-OM, JUN 24, 1983

SUBJECT: REQUEST FROM REPRESENTATIVE ANDREWS - PROPRIETY OF CASH MATCH REQUIREMENT FOR JUVENILE JUSTICE GRANTS (FILE B-202245; CODE 185997)

GROUP DIRECTOR, GGD - JACK WILD SENIOR ATTORNEY, OGC - BARRY R. BEDRICK:

IN A LETTER DATED APRIL 29, 1983, REPRESENTATIVE IKE ANDREWS ASKED VARIOUS QUESTIONS CONCERNING ADMINISTRATION OF THE JUVENILE JUSTICE AND DELINQUENCY PREVENTION ACT (JJDP ACT). THIS MEMORANDUM REPLIES TO QUESTION 3 IN REPRESENTATIVE ANDREWS' LETTER, REGARDING THE PROPRIETY OF REQUIRING A MATCHING CONTRIBUTION FROM RECIPIENTS OF GRANT FUNDS UNDER PARTS B AND C OF TITLE II OF THE JJDP ACT. AS EXPLAINED IN DETAIL BELOW, WE CONCLUDE THAT MATCHING CONTRIBUTIONS MAY NOT BE REQUIRED FROM PART B GRANTEES.

QUESTION: REPRESENTATIVE ANDREWS' LETTER STATES THAT IT HAS BEEN REPORTED THAT THE ADMINISTRATOR OF THE OFFICE OF JUVENILE JUSTICE AND DELINQUENCY PREVENTION (OJJDP) HAS REQUIRED AS MUCH AS A 50 PERCENT CASH MATCH FROM RECIPIENTS OF GRANTS UNDER BOTH PARTS B AND C OF TITLE II OF THE JJDP ACT. WOULD SUCH A CASH MATCH REQUIREMENT VIOLATE SECTION 228 OF THE JJDP ACT?

ANSWER: A CASH MATCH REQUIREMENT IS PERMISSIBLE ONLY FOR GRANTS UNDER PART A OR PART C OF TITLE II OF THE JJDP ACT.

PART B OF TITLE II OF THE JJDP ACT, SECS. 221-225, 42 U.S.C. SECS. 5631- 5635, AUTHORIZES BOTH FORMULA GRANTS AND DISCRETIONARY GRANTS BY THE ADMINISTRATOR OF OJJDP. PART C OF TITLE II, SECS. 241-250, 42 U.S.C. SECS. 5651-5661, ESTABLISHES THE NATIONAL INSTITUTE FOR JUVENILE JUSTICE AND DELINQUENCY PREVENTION (NIJJDP), WHICH IS AUTHORIZED TO CARRY OUT VARIOUS FUNCTIONS RELATING TO COLLECTING INFORMATION, PERFORMING RESEARCH, AND CONDUCTING TRAINING. SECTION 241(E)(4), 42 U.S.C. SEC. 5651(E)(4), AUTHORIZES NIJJDP TO MAKE GRANTS OR ENTER INTO CONTRACTS FOR THE PARTIAL PERFORMANCE OF ANY FUNCTIONS OF THE NIJJDP. ACCORDING TO REPRESENTATIVE ANDREWS' REQUEST, THE ADMINISTRATOR OF OJJDP HAS REQUIRED RECIPIENTS OF GRANTS UNDER PARTS B AND C TO SHARE THE COSTS OF THE PROJECTS BY PROVIDING A CASH CONTRIBUTION.

SECTION 228 OF THE JJDP ACT HAS TWO PROVISIONS RELATING TO MATCHING CONTRIBUTIONS FROM RECIPIENTS OF TITLE II FUNDS, AS FOLLOWS:

"(A) WHENEVER THE ADMINISTRATOR DETERMINES THAT IT WILL CONTRIBUTE TO THE PURPOSES OF PART A OR PART C, HE MAY REQUIRE THE RECIPIENT OF ANY GRANT OR CONTRACT TO CONTRIBUTE MONEY, FACILITIES, OR SERVICES.

"(C) EXCEPT AS PROVIDED IN THE SECOND SENTENCE OF SECTION 222(C) REGARDING CASH MATCH FOR FEDERAL FUNDS USED BY THE STATE FOR ADMINISTRATIVE EXPENSES, FINANCIAL ASSISTANCE EXTENDED UNDER THE PROVISIONS OF THIS TITLE SHALL BE 100 PER CENTUM OF THE APPROVED COST OF ANY PROGRAM OR ACTIVITY."

WHILE SECTIONS 228(A) AND 228(C) MAY APPEAR INCONSISTENT ON FIRST READING, THE LEGISLATIVE HISTORY INDICATES THAT SECTION 228(A) WAS INTENDED TO EXCLUDE GRANTS UNDER PARTS A AND C OF THE JJDP ACT FROM THE BLANKET PROHIBITION ON MATCHING REQUIREMENTS IN SECTION 228(C).

THE ORIGINAL 1974 ACT LIMITED TO 90 PERCENT THE FEDERAL CONTRIBUTION FOR PROJECTS USING FORMULA GRANT FUNDS UNDER PART B, WITH THE REMAINING 10 PERCENT TO BE PROVIDED BY THE NON-FEDERAL RECIPIENT IN CASH OR IN KIND. SECTION 228(C) OF THAT ACT ALSO PROVIDED THAT THE ADMINISTRATOR COULD REQUIRE THE RECIPIENT OF ANY GRANT OR CONTRACT TO CONTRIBUTE MONEY, FACILITIES, OR SERVICES.

THE 1977 AMENDMENTS FN1 CHANGED THE MATCH REQUIREMENTS FOR BOTH FORMULA AND DISCRETIONARY GRANTS. THE SENATE VERSION OF THE BILL WOULD HAVE ALLOWED ALL FORMULA GRANT PROJECTS TO BE FUNDED UP TO THE TOTAL COST WITH FEDERAL FUNDS, AND REQUIRED THAT ANY NON-FEDERAL SHARE NOT EXCEED 10 PERCENT OF TOTAL PROJECT COSTS. THE SENATE BILL ALSO SPECIFIED THAT THE ADMINISTRATOR'S AUTHORITY TO REQUIRE MATCHING CONTRIBUTIONS EXTENDED TO: GRANTS FOR THE CONCENTRATION OF FEDERAL EFFORT UNDER PART A, TITLE II OF THE JJDP ACT; THE SPECIAL EMPHASIS PROGRAM UNDER PART B, SUBPART II, TITLE II; AND NIJJDP PROGRAMS FUNDED UNDER PART C, TITLE II. SEE S.REP. NO. 165, 95TH CONG., 1ST SESS. 62 63 (1977). THE HOUSE BILL WOULD HAVE REQUIRED THAT FEDERAL FUNDS COVER ALL COSTS OF PROJECTS FUNDED UNDER FORMULA GRANTS, BUT RETAINED THE SECTION IN THE 1974 ACT WHICH ALLOWED THE ADMINISTRATOR TO REQUIRE A CONTRIBUTION FROM RECIPIENTS OF FUNDS UNDER ALL PARTS OF TITLE II.

THE CONFERENCE VERSION OF THE BILL ADOPTED THE HOUSE BILL PROVISION REQUIRING THAT FORMULA GRANT PROJECTS BE FUNDED TOTALLY FROM FEDERAL CONTRIBUTIONS. THE CONFERENCE ALSO ADOPTED THE SENATE PROVISION REGARDING THE ADMINISTRATOR'S DISCRETION TO IMPOSE MATCHING REQUIREMENTS, WITH AN AMENDMENT ELIMINATING THE ADMINISTRATOR'S AUTHORITY TO REQUIRE A MATCH FOR SPECIAL EMPHASIS PROJECTS. SEE H.R. REP. NO. 542, 95TH CONG., 1ST SESS. 21 (1977).

IT IS CLEAR FROM THE STATUTORY LANGUAGE AND LEGISLATIVE HISTORY THAT THE ADMINISTRATOR OF OJJDP IS AUTHORIZED TO REQUIRE A MATCHING CONTRIBUTION FROM RECIPIENTS OF PART A AND PART C GRANTS. FN2 IT IS EQUALLY CLEAR THAT THE ADMINISTRATOR MAY NOT REQUIRE A MATCH FROM RECIPIENTS UNDER PART B OF EITHER FORMULA OR DISCRETIONARY GRANTS. ACCORDINGLY, ANY

FN1 PUB. L. NO. 95-115, 91 STAT. 1048 (1977).

FN2 REQUIRING A MATCHING CONTRIBUTION AND SPECIFYING THE AMOUNT OF MATCH ARE DECISIONS VESTED IN THE ADMINSTRATOR'S DISCRETION. FOR EXAMPLE, OJJDP MATERIALS SHOW THAT GRANTEES UNDER A PART C PROGRAM ARE REQUIRED TO SECURE AN INITIAL NON-FEDERAL CONTRIBUTION BEFORE RECEIVING ANY FEDERAL FUNDS, WITH SUPPLEMENTAL FEDERAL GRANTS AVAILABLE IN INCREMENTS DURING THE YEAR FOR THOSE GRANTEES WHO OBTAIN ADDITIONAL NON FEDERAL CONTRIBUTIONS. PRESCRIBING THIS PROCEDURE, THE ADMINISTRATOR IS ACTING WITHIN HIS AUTHORITY UNDER SECTION 228(A).