Notice2024-03044
Award Management Requirements Circular (C 5010.1) Proposed Updates
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Published
February 14, 2024
Issuing agencies
Transportation DepartmentFederal Transit Administration
Abstract
The Federal Transit Administration (FTA) is seeking public comment on proposed updates to FTA's Award Management Requirements circular (C 5010.1). The proposed updates combine requirements applicable to all FTA financial assistance awards (referred to as "cross-cutting" requirements) and, when final, will supersede parts of three separate FTA circulars (the proposed "Grant Programs for Urbanized Areas", "Formula Grants for Rural Areas" (C 9040.1G), and "Enhanced Mobility of Seniors and Individuals with Disabilities" (C 9070.1G)). The proposed updates also reflect changes made by the Fixing America's Surface Transportation (FAST) Act; the Infrastructure Investment and Jobs Act (IIJA), also known as the Bipartisan Infrastructure Law (BIL)); the Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards; and other updates to FTA policies and procedures.
Full Text
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<title>Federal Register, Volume 89 Issue 31 (Wednesday, February 14, 2024)</title>
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[Federal Register Volume 89, Number 31 (Wednesday, February 14, 2024)]
[Notices]
[Pages 11334-11338]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2024-03044]
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DEPARTMENT OF TRANSPORTATION
Federal Transit Administration
[Docket No. FTA-2024-0003]
Award Management Requirements Circular (C 5010.1) Proposed
Updates
AGENCY: Federal Transit Administration (FTA), Department of
Transportation (DOT).
ACTION: Notice of availability of proposed circular updates and request
for comments.
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SUMMARY: The Federal Transit Administration (FTA) is seeking public
comment on proposed updates to FTA's Award Management Requirements
circular (C 5010.1). The proposed updates combine requirements
applicable to all FTA financial
[[Page 11335]]
assistance awards (referred to as ``cross-cutting'' requirements) and,
when final, will supersede parts of three separate FTA circulars (the
proposed ``Grant Programs for Urbanized Areas'', ``Formula Grants for
Rural Areas'' (C 9040.1G), and ``Enhanced Mobility of Seniors and
Individuals with Disabilities'' (C 9070.1G)). The proposed updates also
reflect changes made by the Fixing America's Surface Transportation
(FAST) Act; the Infrastructure Investment and Jobs Act (IIJA), also
known as the Bipartisan Infrastructure Law (BIL)); the Uniform
Administrative Requirements, Cost Principles, and Audit Requirements
for Federal Awards; and other updates to FTA policies and procedures.
DATES: Comments must be submitted by April 15, 2024. Late-filed
comments will be considered to the extent practicable.
ADDRESSES: Please submit your comments by only one of the following
methods, identifying your submission by docket number FTA-2024-0003.
All electronic submissions must be made to the U.S. Government
electronic site at <a href="https://www.regulations.gov/">https://www.regulations.gov/</a>.
(1) Federal eRulemaking Portal: Go to <a href="https://www.regulations.gov/">https://www.regulations.gov/</a>
and follow the online instructions for submitting comments.
(2) Mail: Docket Management Facility: U.S. Department of
Transportation, 1200 New Jersey Avenue SE, West Building, Ground Floor,
Room W12-140, Washington, DC 20590-0001.
(3) Hand Delivery or Courier: West Building Ground Floor, Room W12-
140, 1200 New Jersey Avenue SE, between 9 a.m. and 5 p.m. Eastern time,
Monday through Friday, except Federal holidays.
(4) Fax: 202-493-2251.
Instructions: You must include the agency name (Federal Transit
Administration) and Docket number (FTA-2024-003 for this notice at the
beginning of your comments. Submit two copies of your comments if you
submit them by mail. For confirmation that FTA received your comments,
include a self-addressed stamped postcard. Note that all comments
received will be posted without change to <a href="https://www.regulations.gov/">https://www.regulations.gov/</a>
including any personal information provided and will be available to
internet users. For information on DOT's compliance with the Privacy
Act, please visit <a href="https://www.transportation.gov/privacy">https://www.transportation.gov/privacy</a>.
Docket: For access to the docket to read background documents and
comments received, go to <a href="https://www.regulations.gov/">https://www.regulations.gov/</a> at any time or to
the U.S. Department of Transportation, 1200 New Jersey Ave. SE, Docket
Operations, M-30, West Building Ground Floor, Room W12-140, Washington,
DC 20590 between 9 a.m. and 5 p.m. Eastern Time, Monday through Friday,
except Federal holidays.
FOR FURTHER INFORMATION CONTACT: For award management questions,
Latrina Trotman, Office of Program Management, Federal Transit
Administration, 1200 New Jersey Ave. SE, Room E46-301, Washington, DC
20590, phone: (202) 366-2328, or email, <a href="/cdn-cgi/l/email-protection#165a7762647f787738426479627b77785672796238717960"><span class="__cf_email__" data-cfemail="cf83aebbbda6a1aee19bbda0bba2aea18faba0bbe1a8a0b9">[email protected]</span></a>. For
legal questions, Jerry Stenquist, Office of Chief Counsel, same
address, Room E56-314, phone: (202) 493-8020, or email,
<a href="/cdn-cgi/l/email-protection#eaa08f989893c4b99e8f849b9f83999eaa8e859ec48d859c"><span class="__cf_email__" data-cfemail="88c2edfafaf1a6dbfcede6f9fde1fbfcc8ece7fca6efe7fe">[email protected]</span></a>.
SUPPLEMENTARY INFORMATION:
Table of Contents:
I. Overview
II. Chapter-by-Chapter Analysis
A. Chapter I--Introduction and Background
B. Chapter II--Circular, FTA Programs, and Grants Management
Overview
C. Chapter III--Award Development and Administration
D. Chapter IV--Property Administration and Award Management
E. Chapter V--FTA Oversight
F. Chapter VI--Financial Management
G. Appendices
I. Overview
FTA proposes an update to its Award Management Requirements
Circular (C 5010.1). The proposed circular updates summarize FTA and
Federal-wide administrative requirements for financial assistance
awards while consolidating pre-existing cross-cutting guidance from
previous FTA program circulars and reducing duplicative information
repeated in separate circulars. The proposed circular updates also
incorporate provisions of the Fixing America's Surface Transportation
(FAST) Act, the Infrastructure Investment and Jobs Act (IIJA), and new
or updated administrative requirements from 2 CFR parts 200 and 1201.
Additionally, the updates clarify existing policy issues as interpreted
and applied by FTA. Furthermore, the circular includes updated FTA
policy regarding real property status reporting, the incidental use of
FTA-funded project property, and transfer of real property to third
party entities for affordable housing. The proposed circular updates
also increase the use of graphics, tables, and weblinks to improve
clarity. A copy of the proposed updated circular will be placed in the
docket, and posted on FTA's Proposed Circulars web page (<a href="https://www.transit.dot.gov/regulations-and-guidance/fta-circulars/proposed-circulars">https://www.transit.dot.gov/regulations-and-guidance/fta-circulars/proposed-circulars</a>).
II. Chapter-by-Chapter Analysis
A. Chapter I--Introduction and Background
Due to the consolidation of three program circulars, definitions
and program descriptions were compared and revised for consistency with
proposed revisions and updates to the following FTA circulars: the
proposed ``Grant Programs for Urbanized Areas'', ``Formula Grants for
Rural Areas'' (C 9040.1G), and ``Enhanced Mobility of Seniors and
Individuals with Disabilities'' (C 9070.1G). FTA proposes to amend the
definitions section for consistency, clarification, and to reflect
changes to statute and other authorities. Specifically, FTA has updated
the following terms:
<bullet> ``Amendment'' has been added for consistency with the
three program circulars.
<bullet> ``Capital Asset'' is modified for consistency with 2 CFR
200.1.
<bullet> ``Concurrent Non-Project Activities'' has been removed and
requirements have been relocated to the body of the circular.
<bullet> ``Excess Real Property Inventory and Utilization Plan''
has been removed as information is required in the revised Real
Property Status Report.
<bullet> ``Facilities'' has been updated to add fixed guideways.
<bullet> ``Federal Interest'' has been updated to better align with
FTA and Federal regulations, including in cases where fair market value
determinations are not readily discernable.
<bullet> ``Incidental Use'' has been updated to align with FTA and
Federal requirements to ensure that recipients maintain satisfactory
continuing control over FTA funded property.
<bullet> ``National Environmental Policy Act'' has been updated to
clarify the role in FTA funded projects. Requirements have been moved
to the body of the circular.
<bullet> ``Operating Expenses'' has been updated to clarify the
differentiation from capital expenses.
<bullet> ``Pre-award Authority'' has been updated to clarify the
process in which announcements and notifications occur.
<bullet> ``Program of Projects'' has been updated to align with
changes made in other FTA circulars.
<bullet> ``Real Property'' has been modified for consistency with 2
CFR 200.1.
<bullet> ``Real Property Inventory'' has been renamed the Real
Property Status Report and has been updated to reflect the revised
requirements of 2 CFR 200.330.
<bullet> ``Remaining Federal Interest for Dispositions Before the
End of the Useful Life of Project Property'' has been deleted and
requirements have
[[Page 11336]]
been relocated to the body of the circular.
<bullet> ``Remaining Federal Interest in Federally Assisted
Property'' has been deleted and requirements have been relocated to the
body of the circular.
<bullet> ``Rolling Stock Repowering'' has been updated and
requirements have been moved to the body of the circular.
<bullet> ``Satisfactory Continuing Control'' has been updated to
more closely align with FTA and Federal requirements for the use of,
and Federal interest in, project property.
<bullet> ``Shared Use'' has been updated for clarity and
differentiation from ``incidental use'' as defined in the circular.
Requirements have been relocated to the body of the circular.
<bullet> ``Unobligated Balance'' has been updated to provide
concept clarifications. Methodology and reporting requirements have
been relocated to the body of the circular.
<bullet> ``Urbanized Area'' has been updated to reflect changes in
designation by the Census Bureau, which no longer utilizes ``Urbanized
Area'' but ``Urban Area'' (UZA), as defined by the Secretary of
Commerce.
<bullet> ``Useful Life'' clarifies applicability to real property
and other capital assets. Because useful life depends on depreciation
and estimated time in use, expected minimum useful life changes
according to the type of asset in question. Furthermore, ``Useful
Life'' has been updated to clarify the relationship between the
measurement of property use and federal financial interest in project
property. The revised definition also distinguishes from the ``useful
life benchmark'' concept utilized by the Transit Asset Management (TAM)
System.
In addition, FTA proposes updates to the list of abbreviations and
acronyms provided in the circular to better reflect agency standards
for references and text additions found elsewhere in the body of the
circular.
B. Chapter II--Circular, FTA Programs, and Grants Management
Chapter II of the proposed circular updates provide an overview of
the requirements and procedures for the management of all applicable
FTA programs authorized under 49 U.S.C. Chapter 53. Additionally, this
chapter provides an overview of the government-wide requirements
applicable to FTA awards. This chapter's updates reflect statutory and
regulatory requirements enacted since the issuance of previous versions
of this circular. Major updates in this chapter include:
<bullet> Updating the list of FTA programs to which the circular
will apply. This includes the addition of program descriptions for the
Rural Transportation Assistance Program (RTAP) (Section 5311(b)(3)) and
the Intercity Bus Program (Section 5311(f)) as well as the removal of
program descriptions of programs that are no longer active.
<bullet> Updating the roles and responsibilities of the recipient
to clarify the necessary timing of funding drawdown requests.
<bullet> Updating FTA's coordination of triennial and state
management reviews and substantial involvement in cooperative
agreements.
<bullet> Disadvantaged Business Enterprise (DBE) program goals and
requirements located throughout the circular.
<bullet> Adding descriptions of the Build America, Buy America Act
(BABA) domestic preference requirements, which apply in addition to
FTA's longstanding Buy America statute.
<bullet> Amending the ``Buy America Domestic Preference''
subsection to reflect updates made by 2 CFR part 184 implementing the
Build America, Buy America Act (BABA), primarily affecting FTA-funded
infrastructure projects by adding domestic preferences for construction
materials and additional procedures related to Buy America waivers.
<bullet> Within the ``Design and Construction of Facilities''
subsection, distinguishing FTA's Project and Construction Management
Guidelines from the Construction Project Management Handbook.
<bullet> Adding a subsection entitled ``Title VI Equity Analysis
for Facilities'' to better inform recipients of the requirement to
conduct such analyses.
<bullet> A subsection on project signage has been added to address
FTA's project signage preferences for FTA assisted projects. This
subsection includes guidelines for displaying agency logos,
incorporating text, placement of signage, and associated costs, among
other signage guidance.
C. Chapter III--Award Development and Administration
This chapter describes the requirements for administering an award
made by FTA. Chapter III is reorganized to include both pre-award and
post-award administrative requirements. The Chapter's updates
consolidate established cross-cutting requirements as well as those
based on newly enacted statute or regulation. Major updates within this
chapter include:
<bullet> An award lifecycle graphic provides an overview of the
major phases of an award.
<bullet> Updates to the ``Metropolitan and Statewide Planning
Requirements'' incorporating information from the relevant program
circulars and the Statewide Transportation Improvement Plan (STIP) and
Transportation Improvement Plan (TIP) processes.
<bullet> Updates to the ``Multiple Designated Recipients in Large
UZAs'' subsection more accurately reflecting FTA expectations for
coordination among local officials.
<bullet> Expansion of the ``Force Account'' subsection to include
additional explanation of the FTA approval process.
<bullet> Reorganization of the ``Certifications and Assurances''
subsection by general capacities, standard assurances, and
certification procedures.
<bullet> Expansion of the ``Application Process'' subsection
clarifying the requisite structure of award budgets in the Transit
Award Management System (TrAMS).
<bullet> Updates to the ``Reporting Requirements for Post Award
Administration'' subsection to include planning reports for multiple
activities, projects, and awards.
<bullet> An expansion of the guidance on the ``Federal Financial
Report (FFR)'' subsection to include the reporting of approved Indirect
Cost Rate Proposals or Cost Allocation Plans.
<bullet> Updates to the ``Budget Revision'' subsection
consolidating the requirements and procedures for revising award
budgets.
<bullet> Clarification regarding an award's period of performance
and related eligibilities of costs incurred after the award end date.
<bullet> Updates to the subsection on ``Changes to Discretionary
Awards or Earmarks'' highlighting the necessity of the competitive
process and pre-award negotiations.
<bullet> Updates to the Adjustments to the ``Federal Share of
Costs'' subsection clarifying that recipients are required to refund
any costs FTA disallows during or after the award closeout process.
<bullet> Broadening of, and change to, the ``Disposition of
Equipment and Supplies'' subsection to the ``Disposition of Property''
subsection.
<bullet> Relocation of property disposition procedures to Chapter
IV.
D. Chapter IV--Property Administration and Award Management
Chapter IV of the proposed circular updates reorganize and update
the award management requirements
[[Page 11337]]
regarding real property and equipment administration. This chapter
provides guidance on the acquisition, management, use, and disposition
of FTA assisted property, including facilities purchased or
constructed, and rolling stock, other equipment, and supplies procured
under an FTA award. The updated requirements are in accordance with 2
CFR part 200, authorizing and appropriating legislation, and other
Federal property requirements. In addition, much of the content within
the chapter has been reorganized and consolidated. Some of the major
changes include:
<bullet> A reorganization and consolidation of the real property
and equipment requirements into separate sections.
<bullet> An overview of Transit Asset Management (TAM) regulations
that impact FTA assisted property has been moved under the General
heading of Chapter IV.
<bullet> Updates to the ``Appraisal Review of Real Estate''
subsection to clarify the requirements and FTA expectations for a
technical analysis and review of appraisal reports. Additional guidance
has been made regarding the qualifications of review appraisers and FTA
concurrence requirements. For Major Capital projects, FTA is proposing
to reduce submission requirements for projects with an approved Real
Estate Acquisition Management Plan.
<bullet> Updates to concurrence requirements for incidental uses of
project property within the subsections ``Property Management for Real
Property'' and ``Incidental Use for Non-Transit Uses of FTA Assisted
Real Property'', including specifying of circumstances in which a
recipient must notify or seek concurrence from FTA in advance of its
incidental uses of project property.
<bullet> Retitling of the ``Real Property Inventory'' subsection to
``Real Property Status Report'' and updating the subsection to reflect
the current requirements in 2 CFR 200.330 that recipients must submit a
real property status report to FTA every three years. FTA proposes the
minimum elements of such reports. Additionally, FTA proposes in its
policy that these recipients shall generally submit these reports to
FTA as part of the triennial or state management review process. The
Real Property reporting requirements apply to all FTA assisted real
property held by a recipient, regardless of the date real property was
acquired or improved. Any recipient not subject to a Triennial or State
Management Review should discuss the timing of the report submissions
with their regional office.
<bullet> A new subsection, ``Transfers for Affordable Housing'',
which incorporates a new disposition option added in 49 U.S.C.
5334(h)(1)(B) that allows a recipient to dispose of an asset with no
repayment to the Federal Government if it will be used for a transit-
oriented development that includes a minimum amount of affordable
housing, as a percentage of the total floor area.
<bullet> Updates to the subsection ``Incidental use for Equipment
and Supplies (including Rolling Stock)'', specifying the circumstances
in which a recipient must notify and seek concurrence from FTA in
advance of its incidental uses of project property.
<bullet> Updates to the subsection ``Leases'' clarifying the
eligibility of Federal funding of capital lease payments as
distinguished from payments for operating leases, including the removal
of cost analyses as a prerequisite for payment eligibility as repealed
by the FAST Act.
<bullet> Updates to the ``Management of Federally Assisted
Property'' subsection for equipment and rolling stock with more clearly
defined requirements for equipment records.
<bullet> Updates to the ``Maintenance and Warranty'' subsection for
equipment and rolling stock to clarify the requirement for recipients
to develop and implement maintenance procedures for FTA funded
equipment.
<bullet> Updates to the ``Disposition of Equipment and Supplies''
subsection to clarify reimbursement requirements to resolve FTA's
remaining share.
<bullet> Addition of a subsection ``Vehicle Components (Including
Converted Vehicles) at End of Minimum Useful Life'' outlining
requirements governing the retention and disposition of vehicle
components after disposition of the vehicle. In the event that a
recipient disposes of a vehicle but retains vehicle components,
recipients must treat the component the same as other Federally funded
equipment, including maintaining records identifying the retained
vehicle components in its equipment inventory until disposition of the
retained components. FTA continues to retain a Federal interest in any
vehicle components retained or repurposed by the recipient. The Federal
interest will continue to be proportional to the Federal share of
participation in the vehicle acquisition. The remaining components must
be valued at the time of removal from the vehicle.
<bullet> Updates to the subsection ``Insurance Proceeds for
Equipment and Rolling Stock'' including clarifications for applying or
repaying insurance proceeds for equipment or rolling stock with an FTA
interest.
<bullet> Updates to the subsection ``Disposition or Use of Assets
for Other Than Purposes of the Award after the End of Their Useful
Life'' setting forth the requirements in 49 U.S.C. 5334(h) for
retaining, using, and disposing of property with a fair market value of
more or less than $5,000.
E. Chapter V--FTA Oversight
This chapter provides an overview of the FTA framework for
evaluating recipient adherence to program and administrative
requirements through a comprehensive oversight program. FTA determines
compliance through self-certification, oversight review, audits, and
site visits. Major updates include:
<bullet> Reorganization of the subsection ``Financial Management''
to clarify major types of financial management oversight reviews.
F. Chapter VI--Financial Management
This chapter discusses requirements for the use and management of
Federal assistance. Chapter VI changes include a reorganization and
updates to information on non-Federal share of awards, indirect costs,
program income, and single audits. Significant updates include:
<bullet> The subsection ``Non-Federal Share'' has been updated to
clarify what FTA considers an amount over the required match and a
reference added to 2 CFR 200.306.
<bullet> The subsection ``Transportation Development Credits under
Additional Sources of Non-Federal Share'' has been reorganized to
clarify requirements for the use of, and the process for, determining
the availability of such credits.
<bullet> The subsection ``In-Kind Contributions of Real Property
under Additional Sources of Non-Federal Share'' has been updated to
clarify requirements governing the applicability of an FTA interest
when real property is used as local match.
<bullet> The subsection ``Indirect Costs'' has been reorganized and
updated with additional information explaining the eligibility of
indirect costs for FTA reimbursement.
<bullet> The subsection ``Cognizant Federal Agency under Indirect
Costs'' has been updated with additional information regarding FTA's
determination of the cognizant agency receiving FTA assistance. This
determination is based on appendix V of 2 CFR part 200.
<bullet> The subsection on ``Plans and Proposals under Indirect
Costs'' has been updated with clarifications regarding FTA approval
requirements
[[Page 11338]]
for Cost Allocation Plans or Indirect Cost Rate Proposals as well as
for the election of the de minimis indirect cost rate.
<bullet> The subsection on ``Single Audits'' has been updated with
additional information on the resolution of audit findings, including
provisions for FTA technical advice and counsel.
G. Appendices
FTA proposes revisions to the organization of the various
appendices in this circular and the three program circulars it would
supersede upon becoming final. Appendices have been moved, relabeled,
updated, or removed. The revised structure of the appendices and an
overview of major updates is included below:
<bullet> Appendix A: Required Prerequisite Documentation
[cir] This appendix was added to capture guidance for key documents
recipients must certify before receiving awards.
<bullet> Appendix B: Award Development
[cir] This appendix was added as a compilation of guidance
previously provided across the program circulars. Appendix B is
designed to provide instruction for preparing an FTA application,
developing an award budget, and information regarding an approved award
budget. The appendix covers topics during the pre-application stage, at
application submission, for developing an award budget, executing award
approvals, a recommended application checklist, and examples related to
award management.
<bullet> Appendix C: Post-Award Modification
[cir] This appendix was added as a compilation of guidance
previously provided across the program circulars. Appendix C has
clarifications for common post-award changes. Post-award changes are
primarily made through a revision to the award budget, an
``administrative'' amendment, or an amendment. The appendix provides
enhanced guidance on the requirements for prior approval from FTA and
more information on when either a budget revision, administrative
amendment, or amendment is appropriate.
<bullet> Appendix D: Real Estate Acquisition Management Plan
[cir] The updates include minor reorganization of information to
clarify elements of a Real Estate Acquisition Management Plan.
<bullet> Appendix F: Rolling Stock Status Report
[cir] Updates have been made to the list of elements included in
the Rolling Stock Status Report to better align with requirements
listed in the body of Chapter IV. FTA proposes minor edits to reflect
changes made to the subsection ``Replacements at the End of the Minimum
Useful Life.''
<bullet> Appendix G: Equipment Disposition Scenarios
[cir] The appendix has been added to consolidate the equipment
disposition scenarios previously provided within the body of this
circular and the circulars that would be superseded by this circular.
<bullet> Appendix H: Cost Allocation Plans
[cir] Clarifications have been made to the Submission Requirements
subsection to incorporate 2 CFR part 200 reference.
[cir] A section ``Cost Allocation Plan Review and Approval'' has
been added which consolidates the requirements for recipients to submit
their Cost Allocation Plan for review and approval.
<bullet> Appendix I: Indirect Cost Rate Proposals
[cir] Clarifying edits have been made throughout to enhance
guidance surrounding the requirements for preparation, submission, and
FTA approval of Indirect Cost Rate Proposals.
[cir] References to applicable 2 CFR part 200 requirements have
been incorporated.
[cir] Cost Allocation Plan information has been moved incorporated
into Appendix H.
Closing
After a review and consideration of the comments provided on the
updates proposed, FTA will publish the updated Award Management
Requirements circular (C 5010.1) on its website. On October 5, 2023,
the Office of Management and Budget (OMB) published a notice of
proposed rulemaking (NPRM) in the Federal Register to revise 2 CFR part
200 and other OMB guidance for grants and agreements (88 FR 69390). FTA
intends to incorporate any changes in 2 CFR part 200 to the extent OMB
issues the final rule before FTA publishes the updated circular.
Nuria I. Fernandez,
Administrator.
[FR Doc. 2024-03044 Filed 2-13-24; 8:45 am]
BILLING CODE 4910-57-P
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This is legal information, not legal advice. Laws vary by jurisdiction and change frequently. Always verify current law with official sources and consult a licensed attorney in your jurisdiction for advice on your specific situation.