Small Business Size Standards, 32635-32636 [2016-12260]

Download as PDF Federal Register / Vol. 81, No. 100 / Tuesday, May 24, 2016 / Rules and Regulations amendments, the new CMP maximum is $989. PART 622—RULES OF PRACTICE AND PROCEDURE ACTION: 3. New Penalty Amounts for Flood Insurance Violations Under § 622.61(b) ■ 1. The authority citation for part 622 continues to read as follows: SUMMARY: The existing maximum CMP for a pattern or practice of flood insurance violations pursuant to 42 U.S.C. 4012a(f)(5) is $2,000. Multiplying $2,000 by the 2012 OMB multiplier, 1.02819, yields a total of $2,056.38. When that number is rounded as required by section 5(a) of the 1990 Act, as amended, the new maximum assessment of the CMP for violating 42 U.S.C. 4012a(f)(5) is $2,056. The CMP in effect on November 2, 2015 was $2,000. Increasing the 2015 CMP of $2,000 by 150 percent yields $5,000. Since the new CMP maximum calculated with the OMB multiplier is lower than the 150percent maximum increase established by the 2015 Act amendments, the new CMP maximum is $2,056. Authority: Secs. 5.9, 5.10, 5.17, 5.25–5.37 of the Farm Credit Act (12 U.S.C. 2243, 2244, 2252, 2261–2273); 28 U.S.C. 2461 note; and 42 U.S.C. 4012a(f). IV. Notice and Comment Not Required by Administrative Procedure Act The 1990 Act, as amended, gives Federal agencies no discretion in the adjustment of CMPs for the rate of inflation. Further, these revisions are ministerial, technical, and noncontroversial. For these reasons, the FCA finds good cause to determine that public notice and an opportunity to comment are impracticable, unnecessary, and contrary to the public interest pursuant to the Administrative Procedure Act, 5 U.S.C. 553(b)(B), and adopts this rule in final form. V. Regulatory Flexibility Act Pursuant to section 605(b) of the Regulatory Flexibility Act (5 U.S.C. 601 et seq.), the FCA hereby certifies that this final rule will not have a significant economic impact on a substantial number of small entities. Each of the banks in the System, considered together with its affiliated associations, has assets and annual income in excess of the amounts that would qualify them as small entities. Therefore, System institutions are not ‘‘small entities’’ as defined in the Regulatory Flexibility Act. List of Subjects in 12 CFR Part 622 mstockstill on DSK3G9T082PROD with RULES 32635 Jkt 238001 § 622.61 Adjustment of civil money penalties by the rate of inflation under the Federal Civil Penalties Inflation Adjustment Act of 1990, as amended. (a) The maximum amount of each civil money penalty within FCA’s jurisdiction is adjusted in accordance with the Federal Civil Penalties Inflation Adjustment Act of 1990, as amended (28 U.S.C. 2461 note), as follows: (1) Amount of civil money penalty imposed under section 5.32 of the Act for violation of a final order issued under section 5.25 or 5.26 of the Act: The maximum daily amount is $2,188 for violations that occur on or after August 1, 2016. (2) Amount of civil money penalty for violation of the Act or regulations: The maximum daily amount is $989 for each violation that occurs on or after August 1, 2016. (b) The maximum civil money penalty amount assessed under 42 U.S.C. 4012a(f) is: $385 for each violation that occurs on or after January 16, 2009, but before July 1, 2013, with total penalties under such statute not to exceed $120,000 for any single institution during any calendar year; $2,000 for each violation that occurs on or after July 1, 2013, but before August 1, 2016, with no cap on the total amount of penalties that can be assessed against any single institution during any calendar year; and $2,056 for each violation that occurs on or after August 1, 2016, with no cap on the total amount of penalties that can be assessed against any single institution during any calendar year. Dated: May 16, 2016. Dale L. Aultman, Secretary, Farm Credit Administration Board. [FR Doc. 2016–11862 Filed 5–23–16; 8:45 am] [Docket No. SBA–2016–0004] Small Business Size Standards U.S. Small Business Administration. AGENCY: PO 00000 Frm 00019 Fmt 4700 The Small Business Administration (SBA) hereby gives notice of its intended application and interpretation of the interaffiliate transactions exclusion from annual receipts set forth in its Small Business Size Regulations. Effective at the issuance of this notice, SBA will apply the exclusion to properly documented transactions between a concern and its domestic or foreign affiliates, regardless of the type of relationship that resulted in the finding of affiliation. DATES: Effective Date: This Policy Statement is effective May 24, 2016. Comment Date: Comments must be received on or before July 25, 2016. ADDRESSES: You may submit comments, identified by Docket No. SBA–2016– 0004 by any of the following methods: • Federal Rulemaking Portal: https:// www.regulations.gov. Follow the instructions for submitting comments. • Mail or Hand Delivery/Courier: Brenda Fernandez, U.S. Small Business Administration, Office of Government Contracting, 409 3rd Street SW., 8th Floor, Washington, DC 20416. SBA will post all comments on https:// www.Regulations.gov. If you wish to submit confidential business information (CBI) as defined in the User Notice at https://www.Regulations.gov, please submit the information to Brenda Fernandez, U.S. Small Business Administration, Office of Government Contracting, 409 3rd Street SW., 8th Floor, Washington, DC 20416, and highlight the information that you consider to be CBI and explain why you believe this information should be held confidential. SBA will review the information and make a final determination of whether the information will be published or not. FOR FURTHER INFORMATION CONTACT: Brenda Fernandez, U.S. Small Business Administration, Office of Government Contracting, 409 3rd Street SW., 8th Floor, Washington, DC 20416; (202) 205–7337; brenda.fernandez@sba.gov. SUPPLEMENTARY INFORMATION: Background BILLING CODE 6705–01–P 13 CFR Part 121 For the reasons stated in the preamble, part 622 of chapter VI, title 12 of the Code of Federal Regulations is amended to read as follows: 17:11 May 23, 2016 2. Revise § 622.61 to read as follows: SMALL BUSINESS ADMINISTRATION Administrative practice and procedure, Crime, Investigations, Penalties. VerDate Sep<11>2014 ■ Statement of General Policy, SBA Size Policy Statement No. 3. Sfmt 4700 Under 13 CFR 121.104(d), the average annual receipts size of a business concern with affiliates is calculated by adding the average annual receipts of the business concern with the average annual receipts of each affiliate. However, in adding the receipts of a concern with its affiliate, SBA excludes ‘‘proceeds from transactions between a concern and its domestic or foreign E:\FR\FM\24MYR1.SGM 24MYR1 mstockstill on DSK3G9T082PROD with RULES 32636 Federal Register / Vol. 81, No. 100 / Tuesday, May 24, 2016 / Rules and Regulations affiliates,’’ under 13 CFR 121.104(a). These transactions are commonly referred to as interaffiliate transactions. The intent of this exclusion is to avoid counting the same receipts twice when determining the size of a particular concern. This Statement of Policy explains how SBA will apply the exclusion. Recent SBA size determinations and decisions of the Office of Hearings and Appeals have limited the exclusion by applying it only to transactions between affiliates that are eligible to file a consolidated tax return. This interpretation has been supported by reference to a parenthetical that was included with section 121.104(a) from 1996 to 2004, providing that the exclusion would apply to interaffiliate amounts ‘‘(if also excluded from gross or total income on a consolidated return filed with the IRS). . . .’’ 13 CFR 121.104(a)(1) (1996); 61 FR 3280 (Jan. 31, 1996). While this parenthetical was in place, SBA excluded only those interaffiliate transactions that were also excluded from consolidated tax returns filed by a concern and its affiliate. This policy necessarily required that the transaction occur between two firms that filed consolidated returns. SBA deleted the parenthetical in 2004. In the preamble to the final rule issued May 21, 2004, SBA stated that it was deleting the parenthetical because ‘‘[w]hether a consolidated return is filed should have no bearing on whether properly documented interaffiliate transactions are excluded from annual receipts.’’ 69 FR 29192, 29196 (May 21, 2004). Thus, since May 2004, the regulation has provided for an exclusion from receipts for ‘‘proceeds from transactions between a concern and its domestic or foreign affiliates.’’ 13 CFR 121.104(a). The regulation does not include a limitation on the types of affiliates for which interaffiliate transactions can be excluded, and in no way ties the exclusion to a concern’s ability to file a consolidated tax return with the identified affiliate. SBA believes that the current regulatory language is clear on its face. It specifically excludes all proceeds from transactions between a concern and its affiliates, without limitation. Moreover, the regulatory history supports the position that the exclusion for interaffiliate transactions is available regardless of the manner of affiliation between a concern and its affiliate. SBA recognized that excluding interaffiliate transactions only when they are identified on a consolidated tax return often perpetuated the double-counting of receipts. By saying that ‘‘[w]hether a consolidated return is filed should have VerDate Sep<11>2014 17:11 May 23, 2016 Jkt 238001 no bearing on whether properly documented interaffiliate transactions are excluded from annual receipts,’’ SBA did not mean to imply that a concern and its affiliate must be able to file a consolidated tax return in order to receive the exclusion from doublecounting interaffiliate transactions. Conversely, SBA was attempting to make clear that it did not support the practice of double-counting receipts between affiliates generally. Because the regulatory text does not contain a restriction, a regulatory change is not necessary. SBA will consider comments submitted regarding this policy. Statement of Policy SBA will not restrict the exclusion for interaffiliate transactions to transactions between a concern and a firm with which it could file a consolidated tax return. The exclusion for interaffiliate transactions may be applied to interaffiliate transactions between a concern and a firm with which it is affiliated under the principles in 13 CFR 121.103. Where SBA is conducting a size determination, SBA requires that exclusions claimed under section 121.104(a) be specifically identified by the concern whose size is at issue and be properly documented. This policy is effective immediately. International Airport (EWR) as a Level 2 schedule-facilitated airport. DATES: May 24, 2016. FOR FURTHER INFORMATION CONTACT: For technical questions concerning this action, contact Susan Pfingstler, System Operations Services, Air Traffic Organization, Federal Aviation Administration, 600 Independence Avenue SW., Washington, DC 20591; telephone (202) 267–6462; email susan.pfingstler@faa.gov. SUPPLEMENTARY INFORMATION: On April 6, 2016, the FAA published the ‘‘Change of Newark Liberty International Airport (EWR) Designation’’ document in order to redesignate Newark Liberty International Airport as a Level 2 schedule-facilitated airport under the International Air Transport Association Worldwide Slot Guidelines effective for the winter 2016 scheduling season, which begins on October 30, 2016.1 On April 5, 2016, the FAA posted a copy of a draft of Env Rev Attach A in the docket associated with the April 6, 2016 document. The FAA has corrected this action by posting the final CATEX documents (the signed CATEX declaration and final Attachment A: Environmental Review of Proposed Change of Operating Authorization Requirement at Newark Liberty International Airport) to the docket. Dated: May 18, 2016. Maria Contreras-Sweet, Administrator. Issued in Washington, DC, on May 18, 2016. Lorelei Peter, Assistant Chief Counsel for Regulations. [FR Doc. 2016–12260 Filed 5–23–16; 8:45 am] [FR Doc. 2016–12252 Filed 5–23–16; 8:45 am] BILLING CODE 8025–01–P BILLING CODE 4910–13–P DEPARTMENT OF TRANSPORTATION DEPARTMENT OF TRANSPORTATION Federal Aviation Administration Federal Aviation Administration 14 CFR Part 93 14 CFR Part 93 [Docket No. FAA–2008–0221] [Docket No. FAA–2007–29320] Change of Newark Liberty International Airport (EWR) Designation; Notification of Availability of Final CATEX Declaration and Supporting Material Operating Limitations at John F. Kennedy International Airport Federal Aviation Administration (FAA), DOT. ACTION: Notification of availability. AGENCY: This action announces the placement in the docket of the final documented categorical exclusion (the signed CATEX declaration and final Attachment A: Environmental Review of Proposed Change of Operating Authorization Requirement at Newark Liberty International Airport) for the redesignation of Newark Liberty SUMMARY: PO 00000 Frm 00020 Fmt 4700 Sfmt 4700 Federal Aviation Administration (FAA), DOT. ACTION: Extension to Order. AGENCY: This action extends the Order Limiting Operations at John F. Kennedy International Airport (JFK) published on January 18, 2008, and most recently extended March 26, 2014. The Order remains effective until October 27, 2018. DATES: This action is effective on May 24, 2016. ADDRESSES: Requests may be submitted by mail to Slot Administration Office, SUMMARY: 1 81 FR 19861. E:\FR\FM\24MYR1.SGM 24MYR1

Agencies

SMALL BUSINESS ADMINISTRATION

[Federal Register Volume 81, Number 100 (Tuesday, May 24, 2016)]
[Rules and Regulations]
[Pages 32635-32636]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-12260]


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SMALL BUSINESS ADMINISTRATION

13 CFR Part 121

[Docket No. SBA-2016-0004]


Small Business Size Standards

AGENCY: U.S. Small Business Administration.

ACTION: Statement of General Policy, SBA Size Policy Statement No. 3.

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SUMMARY: The Small Business Administration (SBA) hereby gives notice of 
its intended application and interpretation of the interaffiliate 
transactions exclusion from annual receipts set forth in its Small 
Business Size Regulations. Effective at the issuance of this notice, 
SBA will apply the exclusion to properly documented transactions 
between a concern and its domestic or foreign affiliates, regardless of 
the type of relationship that resulted in the finding of affiliation.

DATES: 
    Effective Date: This Policy Statement is effective May 24, 2016.
    Comment Date: Comments must be received on or before July 25, 2016.

ADDRESSES: You may submit comments, identified by Docket No. SBA-2016-
0004 by any of the following methods:
     Federal Rulemaking Portal: https://www.regulations.gov. 
Follow the instructions for submitting comments.
     Mail or Hand Delivery/Courier: Brenda Fernandez, U.S. 
Small Business Administration, Office of Government Contracting, 409 
3rd Street SW., 8th Floor, Washington, DC 20416.
    SBA will post all comments on https://www.Regulations.gov. If you 
wish to submit confidential business information (CBI) as defined in 
the User Notice at https://www.Regulations.gov, please submit the 
information to Brenda Fernandez, U.S. Small Business Administration, 
Office of Government Contracting, 409 3rd Street SW., 8th Floor, 
Washington, DC 20416, and highlight the information that you consider 
to be CBI and explain why you believe this information should be held 
confidential. SBA will review the information and make a final 
determination of whether the information will be published or not.

FOR FURTHER INFORMATION CONTACT: Brenda Fernandez, U.S. Small Business 
Administration, Office of Government Contracting, 409 3rd Street SW., 
8th Floor, Washington, DC 20416; (202) 205-7337; 
brenda.fernandez@sba.gov.

SUPPLEMENTARY INFORMATION:

Background

    Under 13 CFR 121.104(d), the average annual receipts size of a 
business concern with affiliates is calculated by adding the average 
annual receipts of the business concern with the average annual 
receipts of each affiliate. However, in adding the receipts of a 
concern with its affiliate, SBA excludes ``proceeds from transactions 
between a concern and its domestic or foreign

[[Page 32636]]

affiliates,'' under 13 CFR 121.104(a). These transactions are commonly 
referred to as interaffiliate transactions. The intent of this 
exclusion is to avoid counting the same receipts twice when determining 
the size of a particular concern. This Statement of Policy explains how 
SBA will apply the exclusion.
    Recent SBA size determinations and decisions of the Office of 
Hearings and Appeals have limited the exclusion by applying it only to 
transactions between affiliates that are eligible to file a 
consolidated tax return. This interpretation has been supported by 
reference to a parenthetical that was included with section 121.104(a) 
from 1996 to 2004, providing that the exclusion would apply to 
interaffiliate amounts ``(if also excluded from gross or total income 
on a consolidated return filed with the IRS). . . .'' 13 CFR 
121.104(a)(1) (1996); 61 FR 3280 (Jan. 31, 1996). While this 
parenthetical was in place, SBA excluded only those interaffiliate 
transactions that were also excluded from consolidated tax returns 
filed by a concern and its affiliate. This policy necessarily required 
that the transaction occur between two firms that filed consolidated 
returns.
    SBA deleted the parenthetical in 2004. In the preamble to the final 
rule issued May 21, 2004, SBA stated that it was deleting the 
parenthetical because ``[w]hether a consolidated return is filed should 
have no bearing on whether properly documented interaffiliate 
transactions are excluded from annual receipts.'' 69 FR 29192, 29196 
(May 21, 2004). Thus, since May 2004, the regulation has provided for 
an exclusion from receipts for ``proceeds from transactions between a 
concern and its domestic or foreign affiliates.'' 13 CFR 121.104(a). 
The regulation does not include a limitation on the types of affiliates 
for which interaffiliate transactions can be excluded, and in no way 
ties the exclusion to a concern's ability to file a consolidated tax 
return with the identified affiliate.
    SBA believes that the current regulatory language is clear on its 
face. It specifically excludes all proceeds from transactions between a 
concern and its affiliates, without limitation. Moreover, the 
regulatory history supports the position that the exclusion for 
interaffiliate transactions is available regardless of the manner of 
affiliation between a concern and its affiliate. SBA recognized that 
excluding interaffiliate transactions only when they are identified on 
a consolidated tax return often perpetuated the double-counting of 
receipts. By saying that ``[w]hether a consolidated return is filed 
should have no bearing on whether properly documented interaffiliate 
transactions are excluded from annual receipts,'' SBA did not mean to 
imply that a concern and its affiliate must be able to file a 
consolidated tax return in order to receive the exclusion from double-
counting interaffiliate transactions. Conversely, SBA was attempting to 
make clear that it did not support the practice of double-counting 
receipts between affiliates generally.
    Because the regulatory text does not contain a restriction, a 
regulatory change is not necessary. SBA will consider comments 
submitted regarding this policy.

Statement of Policy

    SBA will not restrict the exclusion for interaffiliate transactions 
to transactions between a concern and a firm with which it could file a 
consolidated tax return. The exclusion for interaffiliate transactions 
may be applied to interaffiliate transactions between a concern and a 
firm with which it is affiliated under the principles in 13 CFR 
121.103. Where SBA is conducting a size determination, SBA requires 
that exclusions claimed under section 121.104(a) be specifically 
identified by the concern whose size is at issue and be properly 
documented. This policy is effective immediately.

    Dated: May 18, 2016.
Maria Contreras-Sweet,
Administrator.
[FR Doc. 2016-12260 Filed 5-23-16; 8:45 am]
BILLING CODE 8025-01-P

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